HomeMy WebLinkAbout17 - NB-2 - Submission to the Voters at the Nov 8, - 6/7/2016CITY COUNCIL AGENDA REPORT
MEETING DATE: June 7, 2016 ITEM NUMBER: NB -2
SUBJECT: SUBMISSION TO THE VOTERS AT THE NOVEMBER 8, 2016 GENERAL
MUNICIPAL ELECTION TWO PROPOSED ORDINANCES QUALIFIED BY
VOTER INITIATIVE ALLOWING OPERATION OF LICENSED MEDICAL
MARIJUANA BUSINESSES IN THE CITY OF COSTA MESA
DATE: May 27, 2016
FROM: Brenda Green, City Clerk
Tarquin Preziosi, Deputy City Attorney
PRESENTATION BY: Tarquin Preziosi, Deputy City Attorney
FOR FURTHER INFORMATION CONTACT: Brenda Green, City Clerk, 714-754-5221
RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution 2016-29: Calling and giving notice for the holding of a General
Municipal election to be held on November 8, 2016 for the submission to the voters of
a proposed ordinance entitled, "Allow Operation of up to Eight Medical Marijuana
(Cannabis) Businesses in the City of Costa Mesa"; and
2. Adopt Resolution 2016-30: Calling and giving notice for the holding of a General
Municipal election to be held on November 8, 2016 for the submission to the voters of
a proposed ordinance entitled, "Allow Operation of up to Four Licensed Medical
Marijuana Businesses in the City of Costa Mesa"; and
3. Adopt Resolution 2016-31: Requesting the Orange County Board of Supervisors to
Consolidate a General Municipal election to be held on November 8, 2016, for the
purpose of submitting to the voters of the City of Costa Mesa two questions relating
to the adoption of proposed ordinances; and
4. Adopt Resolution 2016-32: Authorizing written arguments for or against the proposed
ordinance to Allow Operation of up to Eight Medical Marijuana (Cannabis) Businesses
in the City of Costa Mesa; setting priorities for filing written arguments, determining the
authors of the written arguments, and directing the City Attorney to prepare an
impartial analysis; and
5. Adopt Resolution 2016-33: Authorizing written arguments for or against the proposed
ordinance to Allow Operation of up to Four Medical Marijuana Businesses in the City
of Costa Mesa; setting priorities for filing written arguments, determining the authors of
the written arguments, and directing the City Attorney to prepare an impartial analysis;
and
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6. Adopt Resolution 2016-34: Authorizing the filing of rebuttal arguments for City
measures submitted at municipal elections.
BACKGROUND
Two initiative petitions each with the intent of authorizing the operation of medical
marijuana businesses within the City of Costa Mesa, have qualified for placement on
the November 8, 2016 ballot.
At the November 18, 2014 City Council meeting, City Council ordered a report pursuant
to Election Code Section 9212 for two qualifying medical marijuana ballot initiatives, a
report for a proposed City's Medical Marijuana Ordinance, and a report on the City of
Santa Ana's Ordinance.
The City Council met on December 16, 2014 to discuss the report and approved June
7, 2016, as the date to agendize the resolutions to order the two initiatives to be placed
on the November 8, 2016 ballot.
FISCAL IMPACT OF PLACING MEASURE ON BALLOT
The cost to place both initiatives on the November 2016 ballot is estimated at $20,000.00,
and is included in the Fiscal Year 2016-17 preliminary budget, Elections Consulting.
LEGAL REVIEW
The City Attorney's office has reviewed the report and approved as to form.
CONCLUSION
Adoption of the proposed Resolutions ensures compliance with the California Elections
Code which mandates the process for placement of the initiative on the November 8,
2016 ballot.
BRENDA GREEN
City Clerk
RICHARD L. FRANCIS
Assistant Chief Executive Officer
Attachments:
1.
Resolution 2016-29
2.
Resolution 2016-30
3.
Resolution 2016-31
4.
Resolution 2016-32
5.
Resolution 2016-33
6.
Resolution 2016-34
TARQUIN PREZIOSI
Deputy City Attorney
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RESOLUTION NO. 16-29 ATTACHMENT 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,
CALLING AND GIVING NOTICE FOR THE HOLDING OF A GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 8, 2016 FOR THE SUBMISSION TO THE VOTERS
OF A PROPOSED MEASURE
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS
FOLLOWS:
WHEREAS, pursuant to authority provided by statute a petition has been filed with the
legislative body of the City of Costa Mesa, California, signed by more than fifteen percent (15%)
of the number of registered voters of the city to submit a proposed ordinance entitled: Allow
Operation of up to Eight Medical Marijuana (Cannabis) Businesses in the City of Costa Mesa;
and
WHEREAS, the City Clerk has caused to be examined, through the office of the Orange
County Registrar, the records of registration and is in receipt of that certain "Certificate as to
Verification of Signatures on Petition," from the Orange County Registrar, has examined such
certificate and has accepted as true and correct the findings contained therein and, thereby,
ascertained that the petition is signed by the requisite number of voters; and
WHEREAS, the City Council has not voted in favor of the adoption of the ordinance; and
WHEREAS, the City Council is authorized and directed by statute to submit the proposed
ordinance to the voters;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
SECTION 1. The foregoing recitals are true, correct, and adopted by the City Council as if
set forth in full.
SECTION 2. That pursuant to the requirements of the laws of the State of California relating
to general law cities there is called and ordered to be held in the City of Costa Mesa, California
on November 8, 2016 a General Municipal Election for the purpose of submitting the following
proposed ordinance:
Resolution No. 16-29 Page 1
Measure : Allow Operation of up to Eight Medical
Marijuana (Cannabis) Businesses in the City of
Costa Mesa
Response
Vote
Shall the ordinance, to allow operation of up to eight medical
marijuana (cannabis) businesses with: six percent tax on
Yes
medical marijuana (estimated annual tax revenues $48,000
to $912,000); one percent tax on other products; exemption
No
from permits; regulations not subject to change by City
Council except for increasing businesses; precedence to
prior businesses; and locations limited to commercial and
industrial areas, be adopted?
SECTION 3. That the proposed complete text of the ordinance submitted to the voters is
attached as Exhibit A.
SECTION 4. That the vote requirement for the measure to pass is a majority (50% +1) of
the votes cast.
SECTION 5. That the ballots to be used at the election shall be in the form and content as
required by law.
SECTION 6. That the City Clerk is authorized, instructed, and directed to coordinate with
the County of Orange Registrar of Voters to procure and furnish any and all official ballots,
notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in
order to properly and lawfully conduct the election.
SECTION 7. That the polls for the election shall be open at 7 a.m. of the day of the election
and shall remain open continuously from that time until 8 p.m. of the same day when said polls
shall be closed, pursuant to Election Code Section 10242, except as provided in Section 14401
of the Elections Code of the State of California.
SECTION 7. That the Orange County Registrar of Voters is authorized to canvass the
returns of the General Municipal Election.
SECTION 8. That in all particulars not recited in this resolution, said election shall be held
and conducted in accordance with the provisions of law regulating the statewide election.
SECTION 9. That notice of the time and place of holding the election is given and the City
Clerk is authorized, instructed, and directed to give such further or additional notice of the
election, in the time, form, and manner required by law.
Resolution No. 16-29 Page 2
SECTION 10. The Costa Mesa City Council hereby requests that the Orange County
Registrar of Voters conduct all necessary services related to the Costa Mesa General Municipal
Election. Pursuant to Elections Code Section 10002, the Finance Director, or his/her designee,
is hereby authorized to reimburse the County for the actual cost incurred in conducting the
election upon receipt of a bill stating the amount due as determined by the elections official.
SECTION 11. That the City Clerk shall certify to the passage and adoption of this resolution
and enter it into the book of original resolutions.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the
City of Costa Mesa on this 7t" day of June, 2016.
Stephen M. Mensinger, Mayor
ATTEST:
Brenda Green, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROVED AS TO FORM:
Thomas Duarte, City Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
foregoing Resolution No. 16-29 was duly passed and adopted by the City Council of the City of
Costa Mesa at a regular meeting held on the 7t" day of June, 2016, by the following roll call
vote, to wit:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa
Mesa this 8t" day of June, 2016.
BRENDA GREEN, CITY CLERK
Attachment: Exhibit A — Proposed Ordinance
Resolution No. 16-29 Page 3
Exhibit A
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
Committee of proponents, who are residents of the City of Costa Mesa, sponsoring the petition:
Robert Taft, Jr. Kevin Gardner
TEXT OF THE PROPOSED MEASURE:
MEDICAL CANNABIS CONTROL ACT.
Section 1 — Title
This initiative shall be known and may be cited as the Medical Cannabis Control Act.
Section 2 — Findings and Declarations
Pursuant to, and consistent with the current California law concerning medical
cannabis, the City of Costa Mesa shall enact an ordinance creating Title 9, Chapter VI of the
Costa Mesa Municipal Code, and amend in its entirety Title 13, Chapter 1, Article 2, Section
13-6, and amending Row 31(a) of Title 13, Chapter 4, section 13-30, and amending Title 9,
Chapter 1, Article 5, Section 9-32 of the Costa Mesa Municipal Code, in order to authorize the
establishment of medical cannabis businesses, to restrict and limit such medical cannabis
businesses by imposing strict regulations on such businesses to protect the health, safety, and
welfare of the community;
WHEREAS, the Compassionate Use Act ("CUA"), adopted by California voters in
1996, and the Medical Marijuana Program Act ("MMPA"), enacted by the State Legislature in
2003, decriminalized the cultivation and use of marijuana by seriously ill individuals upon
a physician's recommendation and provided California's qualified patients and their primary
caregivers with specified immunities under state law, thereby helping to ensure that
qualified patients and their primary caregivers, who possess and use marijuana for medical
purposes, are not subject to criminal prosecution and/or sanction;
WHEREAS, the Costa Mesa Police Department ("CMPD") has reported that the
number of marijuana dispensaries and commercial growing operations proliferated though out
the City in the past without sufficient legal oversight, the City and its neighborhoods have
experienced negative secondary effects, including an increase in crime at certain locations
associated with unregulated medical cannabis businesses;
WHEREAS, there presently are no ordinances in the City of Costa Mesa specifically
regulating or monitoring the location, zoning standards, or other aspects of the locations and
facilities where medical cannabis will be dispensed to eligible persons under state law;
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MEDICAL CANNABIS CONTOL ACT
WHEREAS, medical cannabis businesses must operate with reasonable regulation, to
ensure that those seriously ill residents of the City benefit from the palliative effects of medical
cannabis have access they are provided under state law;
WHEREAS, by implementing a fair and reasonable registration process for medical
cannabis businesses, the City will be able to maintain order while avoiding undue burdens on its
already strained financial resources;
WHEREAS, the City has a substantial and clear interest in ensuring that medical
cannabis is distributed in an orderly manner, and in protecting the public health, safety and
welfare of its residents, its businesses, the neighborhoods in which medical cannabis businesses
operate, while ensuring compassionate access to seriously ill residents to medical cannabis in
accordance with the CUA and the MMPA;
WHEREAS, the regulations in this initiative do not interfere with a qualified patient's
right to use medical cannabis as authorized under California law, nor do they criminalize the
possession or cultivation of medical cannabis by specifically defined classifications of persons,
as authorized under California law;
WHEREAS, medical cannabis businesses shall comply with all provisions of the Costa
Mesa Municipal Code ("Code"), California law, and all other applicable local laws; nothing in
this initiative purports to permit activities that are otherwise illegal under state or local law;
WHEREAS, this initiative is not intended to conflict with federal or state law, nor is it
intended to respond to or invite litigation over any unresolved legal questions posed by the
California Attorney General or by case law regarding the scope and application of state law; it is
intended that this initiative be interpreted to be compatible with federal and state enactments and
in furtherance of the public purposes that those enactments encompass;
WHEREAS, the People of the City of Costa Mesa find that nonprofit medical cannabis
businesses which operate in full compliance with the State Compassionate Use Act, the Medical
marijuana program act, and the Attorney General Guidelines demonstrate a willingness to
engage in lawful activity which benefits economic costs associated with the City of Costa Mesa's
local regulation and enforcement efforts;
WHEREAS, to that end, the People of Costa Mesa further find that those nonprofit
medial marijuana businesses, as set forth in the above paragraph, have been precluded from
operation in the City of Costa Mesa due to the inability to obtain a business license under the
City of Costa Mesa's Municipal Code. Those medical cannabis businesses who never operated in
in Costa Mesa without a business license yet have or have attempted to comply with the
Compassionate Use Act, the Medical marijuana program act, the Attorney General's Guidelines,
and the Costa Mesa Municipal Code by applying for a business license and when denied did not
violate the law and commence operation of a medical cannabis business illegally should be given
a preference for obtaining "Priority Registration" status as that term is herein defined, to operate
under Title 9, Chapter VI.
WHEREAS, the People of the City of Costa Mesa recognize that an ordinance proposed
by a voter initiative and adopted by a vote of the People cannot be repealed or amended, except
by a vote of the People pursuant to the California Constitution, Article 2, Section 10;
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MEDICAL CANNABIS CONTOL ACT
WHEREAS, the People of the City of Costa Mesa further find and declare that
this initiative is enacted pursuant to the powers reserved to the State of California, the City of
Costa Mesa, and its People under the Tenth Amendment of the United States Constitution,
Article 2 of the California Constitution, and the California Health and Safety Code Sections
11362.5 and 11362.7 et seq.
NOW, THEREFORE, the People of the City of Costa Mesa ordain as follows:
SECTION 3 - Amendment to the Costa Mesa Municipal Code to Add Title 9, Chapter VI.
The People of the City of Costa Mesa do hereby enact and ordain that Title 9 of the Costa
Mesa Municipal Code, entitled Licenses and Business Regulations, is hereby amended to add
Chapter VI to read as follows: (Any underlined language is new and shall be inserted into the
Chapter)
CHAPTER VI. - MEDICAL CANNABIS BUSINESSES
9-481 Authority and title
9-482 Release of liability and hold harmless
9-483 Purpose and intent
9-484 Physicians/patient confidentiality
9-485 Definitions
9-486 Medical cannabis businesses prohibited
9-487 Limited immunity
9-487.1 Operational requirements
9-488 Cultivation of medical cannabis
9-489 Transportation of medical cannabis
9-490 Violation and enforcement
9-491 Majority approval; effective date
9-492 Competing measures.
9-493 Amendment and repeal.
9-494 Severability.
9-495 Statewide regulation.
9-496 Special or general election.
SEC. 9-481 Authority and title.
Pursuant to the authority granted by the California Constitution Article 2 and California
Health mid Safety Code Sections 11362 and 11362 7 et sen the People of the City of Costa
Mesa do enact this Chapter, which shall be known and may be cited as the "Medical Cannabis
Control Act."
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MEDICAL CANNABIS CONTOL ACT
SEC. 9-482 — Release of liability and hold harmless.
To the fullest extent permitted by law, the City of Costa Mesa shall assume no liability
whatsoever, and expressly does not waive sovereign immunity, with respect to the medical
cannabis business program established herein, or for the activities of any medical cannabis
business.
Each medical cannabis business recognized by the city shall
a. Release the cites agents, officers, elected officials, and employees from any
injuries, damages, or liabilities of any kind that result from any arrest or
prosecution of the medical cannabis provider association or its participants for
a violation of state or federal law.
b. Indermiify and hold harmless the City, its agents, officers, elected officers
and employees for any claims, damages, or injuries brought by adjacent or
nearby property owners or other third parties due to the operations at the
medical cannabis business and or premises; and
c. Indemnify and hold harmless the City, its is agents, officers, elected officials
and employees for any claims, damages, or injuries brought by any of its
participants for problems, injuries, damages, or liabilities of any kind that may
arise out of the distribution, cultivation and/or use of medical cannabis
provided at the medical cannabis business and/or premises.
SEC. 9-483 - Purpose and intent.
It is the purpose and intent of this Article to limit the maximum number and
concentration of medical cannabis businesses in the City, to provide needed tax revenue to the
City, and to regulate the operation of medical cannabis businesses in order to ensure the health,
safety and welfare of the residents of the City of Costa Mesa The regulations in this Chapter, in
compliance with the Compassionate Use Act, the Medical marijuana program act, and the
California Health and Safety Code do not interfere with a qualified patient's right to use medical
cannabis as authorized under California law, nor do they criminalize the possession or cultivation
of medical cannabis by specifically defined classifications of persons, as authorized under
California law.
Medical cannabis businesses shall comply with all provisions of the Costa Mesa
Municipal Code ("Code") and California laws. Nothing in this Article purports toep rmit
activities that are otherwise illegal under federal, state or local law. This Article is not intended
to conflict with federal or state law, nor is this Article intended to respond to or invite litigation
over any unresolved legal questions posed by the California Attorney General or by case law
regarding the scope and application of state law. It is intended that this Article be interpreted to
be compatible with federal and state enactments and in furtherance of the public purposes that
those enactments encompass.
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MEDICAL CANNABIS CONTOL ACT
SEC. 9-484 — Phvsician/Patient confidentiali
Requirements set forth pursuant to this Chapter shall preserve to the maximum extent
possible all legal protections and privileges, consistent with reasonably verifying the
qualifications and status of qualified patients and primary caregivers. Disclosure of any patient
information to assert facts in support of qualified status shall not be deemed a waiver of
confidentiality of that information.
SEC. 9-485. Definitions.
A. The following phrases and words, when used in this section, shall be constnied as defined
below. Words and phrases not defined here shall be construed as defined in Costa Mesa
municipal code or state law.
"Building" means any structure having a roof supported by columns or walls for the housing
shelter or enclosure of persons, animals, chattels, or property of any kind.
"Caimabis" or "marijuana" shall be construed as defined in California Health and Safety Code
Section 11018 and further shall specifically include any product that contains marijuana or a
derivative of marijuana and all parts of the plant Ll cannabis whether growing or not the seeds
thereof; the resin extracted from any Llpart of the plant; and every compound manufacture salt
derivative, mixture, or[lpreparation of the plant, its seeds or resin. It includes marijuana infiised
in[Ifoodstuff. It does not include the mature stalks of the plant fiber produced from 11the stalks
oil or cake made from the seeds of the plant any other compound,[] manufacturesalt derivative
mixture, or preparation of the mature stalks (except 0the resin extracted therefrom) fiber oil or
cake, or the sterilized seeds of the plant❑ are incapable of germination. ❑
"Collectives" and "cooperatives" when referring to medical cannabis Oorganizations, both mean
associations of five or more qualified patients persons El with identification cards or primarv
caregivers of qualified patients and persons El With identification cards who associate as an
incorporated or unincorporatedL7association, to collectively or cooperatively cultivate and
distribute medical 11 cannabis for use exclusively by their registered members in strict accordance
withOCalifornia Health and Safety Code sections 11362.5 and 11362.7 et sen
"Cultivation" means the planting, growing, harvesting, drying, processing or storage of one or
more marijuana plants or any part thereof in any location, indoor or outdoor, including from
within a filly enclosed an secure building.
"Edible products" means marijuana cultivated by medical cannabis businesses and participants
thereof, that is made available in an edible form and prepared in a certified kitchen meeting all
the applicable health requirements to be used and ingested solely by qualified patient participants
as part of their medical regime, in strict accordance with state law.
"Felony Conviction" means any conviction whether by guilty plea judicial ruling or jury_
verdict, of any felony offense. A conviction of a felony offense that has been dismissed
withdrawn, expunged, or set aside, whether pursuant to California Penal Code section 1203 .4,
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MEDICAL CANNABIS CONTOL ACT
California Penal Code section 1000 California Penal Code section 1385 the interest of justice
or any other judicial ruling or agreement of the prosecution shall not be deemed a felony
conviction.
"Live Scan" means a system for inkless electronic fingerprinting and the automated background
check developed by the California Department of Justice ("DOJ") which involves di itizing
fingerprints and electronically transmitting the fingerprint image data along with personal
descriptor information to computers at the DOJ for completion of a criminal record check or
such other comparable inkless electronic fingerprinting_
"Location" means any parcel of land, whether vacant or occu ip ed by a building group of
buildings, or accessory buildings and includes the buildings structures yards open spaces lot
width, and lot area.
"Manager" means any person with responsibility for the establishment organization
registration, supervision, or oversight of a medical cannabis business including but not limited to
any person who performs the functions of president vice president board member, director,
owner, operating officer, financial officer, secretary, or treasurer of the medical cannabis
business.
"Medical cannabis" and "medical marijuana" means cannabis that isl1grown used and
distributed pursuant to the provisions of California Health andDSafety Code sections 11362.5
and 11362.7-11362.83, including all cannabis Oproducts. infusions and concentrates containing
the active ingredients of the 0cannabis plant.
"Medical cannabis businesses" means the following: an unincorporated or incorporated entity or
association of qualified patients and/or primary caregivers and/or persons with identification
cards who provide money and in-kind contributions reimbursements and reasonable
compensation towards the aforementioned entity's actual expenses for activities including but
not limited to; planting cultivation harvesting transporting manufacturing compounding_
converting_ processing preparing storing packaging_ providing and/or retail sales of medical
cannabis. A medical cannabis business may provide medical cannabis products services and
assistance to qualified patients, persons with a medical cannabis identification card (as set forth
in the MMPA), or the primary caregiver of such persons. Medical cannabis businesses may
assist with the acquisition of skills necessary to cultivate or provide marijuana for medical
purposes in compliance with State Law. A medical cannabis business includes any facility,
building structure or location whether permanent or temporary, where marijuana is made
available, sold, given away, distributed, or otherwise provided in accordance with Health and
Safety Code section 11362.5 et sea. A medical cannabis business includes medical cannabis
collectives, cooperatives, dispensaries, cultivations, and marijuana delivery services Medical
Cannabis businesses include "medical marijuana businesses."
(1) "Medical cannabis business" shall not include nor be interpreted to include any of
the following:
a. Any location which is a legal dwelling zoned exclusively for residential use
and not permitted for any conunereial activity where three (3) or less people
who reside at a property cultivate marijuana.
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MEDICAL CANNABIS CONTOL ACT
b. The location of any clinic licensed pursuant to Chapter 1 (commencing
with Section 1200) a health care facility licensed pursuant to Chapter 2
(commencing with Section 1250), a residential care facility for persons with
chronic life-threatening illness licensed pursuant to Chapter 3.01
(commencing with Section 1568.01), a residential care facility for the elderly
licensed pursuant to Chapter 3.2 (commencing with Section 1569) a hospice
or a home health agency licensed pursuant to Chapter 8 (commencing with
Section 1725), any facility specified in Division 2 of the California Health and
Safety Code where: (i) a qualified patient or person with an identification card
receives medical care or supportive services, or both, from the clinic, facility,
hospice, or home health agency: and (ii) the owner or operator, or one of not
more than three employees designated by the owner or operator, of the clinic
facility, hospice, or home health agency has been designated as arp imary
caregiver pursuant to California Health and Safety Code Section 11362.7(d)
by that qualified patient or person with an identification card.
"Medical cannabis identification card," "Medical marijuana identification card," and
"identification card" mean a❑document issued by the State Department of Health Services
pursuant to❑California Health and Safety Code sections 11362.7 et seq that identifies a
person[] authorized to engage in the medical use of cannabis and the person's
designated[] primary caregiver, if any, or identifies a person as a primary caregiver for
a❑medical cannabis patient.
"Premises" means the space in any buildings of a medical cannabis business together with the
spaces within any structures, yards, open spaces, lot width, and lot area at a location that is
occupied or used in the operation of the medical cannabis business.
"Reasonable compensation" means compensation commensurate with reasonable wages and
benefits paid to employees of IRS -qualified non-profit organizations who have similar job
descriptions and duties, required level of education and experience, prior individual earnings
history, and number of hours worked.
"Structure" means anything constructed or erected which is supported directly or indirectly on
the ground, but not including any vehicle.
"Vehicle" means a conveyance or device by which any person or property may be propelled,
moved, or drawn upon a street, sidewalk or waterway, including but not limited to a device
moved exclusively by human power.
B. The following words or phrases when used in this section shall be construed as defined
in California Health and Safety Code Sections 1746, 11362.5, and 11362.7.
"Hospice"; "Identification card"; "Person with an identification card:" "Primary caregiver"; and
"Qualified patient."
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MEDICAL CANNABIS CONTOL ACT
SEC. 9-486. Medical cannabis businesses prohibited.
A. It shall be unlawful to own, establish, operate, use or permit the establishment or
operation of a medical cannabis business or to participate as an employee contractor,
agent volunteer, or in any manner or capacity other than as provided in this Chapter.
B. The general prohibition contained in this section shall include renting leasing or
otherwise permitting a medical cannabis business to occupy or use a location vehicle or
other mode of transportation.
SEC. 9-487. Limited immunity.
A medical cannabis business shall be immune to the prohibition set out in Section 9-486
and the remedies set forth in Costa Mesa Municipal Code including criminal
prosecution, so long as that medical cannabis business obtains a Business License for the
operation of a medical cannabis business from the City, through the Treasury Division
Management Department and/or City Tax Collector, as well as complies with all
operational requirements provided in this section
A. Business license.
1. The City Tax Collector and/or The City Treasury Division Management
Department shall issue a business license for a medical cannabis business that
meets priority registration or non-priority registration requirements detailed
below in this section.
a. Priority Registration.
i. Beginning on the date that is thirty (30) days after the effective
date of this ordinance, and lasting for ten (10) business days a
medical cannabis business may submit a priority registration
application and obtain a business license for the purpose of
operating a medical cannabis business from the City of Costa
Mesa if, on or before May 30, 2014, such applicant:
(a) Has never operated a medical cannabis or medical
marijuana business in the city of Costa Mesa has never
been convicted of operating a medical cannabis
business, or never been civilladjudicated of operating
a medical cannabis business or medical marijuana
business without a business license in the City of Costa
Mesa:
a. The lack of any court record of a citation
conviction or civil adjudication by the city shall
be sufficient proof to satisfy that applicant has
not operated a medical cannabis business in the
City of Costa Mesa.
(b) Has been issued a business license or has applied for a
business license from the City of Costa Mesa for a
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MEDICAL CANNABIS CONTOL ACT
medical cannabis business or medical mariivana
business;
a. Proof of application or attempt to apply for as
Costa Mesa business license for the purpose of a
medical cannabis business or medical marijuana
business shall be satisfied by any competent
verifiable documentation, including but not
limited to, a date stamped business license
application from the City, a filed application a
copy of a denial letter for a medical cannabis
business from Citv of Costa Mesa or a dated
copy of an application for a medical cannabis
business license along with some proof that a
mailing was sent to the City of Costa Mesa
Treasuresgement Division P.O. Box 1200
Costa Mesa, CA 92628-1200 within seven (7)
days of the signing of the application, or any
documentation stamped "Received" by the city
including, but not limited to, a printout of City,
of Costa Mesa Land Use Matrix Table 13-30 or
a copy of a received stamped copy of a business
card of a senior planner for the City of Costa
Mesa.
(c) Has filed for Incorporation, filed Chapters of
Association for a limited liability company, or articles
of organization with the Secretary of State of California
for the purpose of operating a non-profit medical
cannabis business or medical marijuana business;
a. Proof of incorporation, articles of association or
limited company status shall be satisfied by a
true and correct copy of the articles of
incorporation filed with the Secretary of State
Chapters of Association or any other competent
verifiable documentation;
(d) Possesses or has applied for a Seller's Permit from the
State Board of Equalization in the name of the business.
(e) Possesses or has applied for a License to Sell Nursery
Stock for the City of Costa Mesa which was applied for
or issued by the Department of Food and Agriculture•
(f) Has applied for a Live Scan background check;
(g) Possesses a physician's medical cannabis or medical
mariivapa recommendation pursuant to California
Health and Safety Code section 11362 et. see.:
(h) Possess or has applied for a medical marijuana
identification card pursuant to Health and Safety de
Section 11362.7 et sec.;
(i) Possesses or has applied for a general liability insurance
policy (bodily injury, property damage and medical
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MEDICAL CANNABIS CONTOL ACT
camlabis liability), which specifically includes liability
for medical cannabis and/or medical marijuana
a. Proof of application for a general liability
insurance policy, which specifically includes
liability for medical cannabis and/or medical
marijuana may be shown by a quote from an
insurance company or any other verifiable
documentation.
(j) The applicant possesses a notarized, signed and dated
authorization to submit to fingerprinting and
photographing and authorizing the City in writing to
obtain information from criminal justice agencies,
financial institutions, Federal, State and local
government agencies, and other persons and entities.
The written authorization shall include consent to
release the information to the City for use in connection
with the business license.
(k) The applicant possesses a notarized, signed and dated
statement indicating to the City that the applicant will
hold harmless, indemnify, and defend the City against
all claims and litigation arising from the issuance of a
licenses, including any claims and litigation arising
from the establishment operation or ownership of the
medical cannabis establishment.
b. Non -Priority Registration:
i. Beginning on the date that is thirty (30) days after the effective
date of this ordinance plus ten (10) business days any medical
cannabis business may submit a non-priority registration
application to the Treasury Division Management Department
and/or City Tax Collector for a business license provided the
medical cannabis business meets the following criteria:
(a) Has never operated a medical cannabis or medical
marijuana business in the city of Costa Mesa, has never
been convicted of operating a medical cannabis
business or never been civilly adjudicated of o ep rating
a medical cannabis business or medical marijuana
business without a business license in the City of Costa
Mesa,•
a. The lack of any court record of a citation
conviction or civil adjudication by the city shall
be sufficient proof to satisfy that applicant has
not operated a medical cannabis business in the
City of Costa Mesa.
(b) Has been issued a business license or has applied for a
business license from the City of Costa Mesa for a
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MEDICAL CANNABIS CONTOL ACT
medical cannabis business or medical marijuana
business;
a. Proof of application or attempt to apply for a
Costa Mesa business license for the purpose of a
medical cannabis business or medical marijuana
business shall be satisfied by con ep tent
verifiable documentation, including, but not
limited to, a date stamped business license
application from the City, a filed application a
copy of a denial letter for a medical cannabis
business from City of Costa Mesa or a dated
copy of an application for a medical cannabis
business license along with some proof that a
mailing was sent to the City of Costa Mesa,
TreasuryManagement Division, P.O. Box 1200,
Costa Mesa, CA 92628-1200 within seven (7)
days of the signing of the application, or any
documentation stamped "Received" by the city
including, but not limited to, a printout of City,
of Costa Mesa Land Use Matrix Table 13-30 or
a copy of a received stamped copy of a business
card of a senior planner for the City of Costa
Mesa.
(c) Has filed for Incorporation, filed Chapters of
Association for a limited liability company, or articles
of organization with the Secretary of State of California
for the purpose of operating a non-profit medical
cannabis business or medical marijuana business;
a. Proof of incorporation, articles of association, or
limited company status shall be satisfied by a
true and correct copy of the articles of
incorporation filed with the Secretary of State,
Chapters of Association or any other competent
verifiable documentation;
(d) Possesses or has applied for a Seller's Permit from the
State Board of Equalization in the name of the business.
(e) Possesses or has applied for a License to Sell Nursery
Stock for the City of Costa Mesa which was applied for
or issued by the Department of Food and Agriculture;
(f) Has applied for a Live Scan background check;
(g) Possesses a physician's medical cannabis or medical
marijuana recommendation pursuant to California
Health and Safetv Code section 11362 et. sec.;
(h) Possess or has applied for a medical marijuana
identification card pursuant to Health and Safety Code
Section 11362.7 et sec.;
(i) Possesses or has applied for a general liability insurance
policy (bodily injury, property damage, and medical
_Ig -
MEDICAL CANNABIS CONTOL ACT
cannabis liability), which specifically includes liability
for medical cannabis and/or medical marijuana.
a. Proof of application for a general liability
insurance policy, which specifically includes
liability for medical cannabis and/or medical
marijuana may be shown byguote from an
insurance company or any other verifiable
documentation.
(j) The applicant possesses a notarized, signed, and dated
authorization to submit to fingerprinting and
photographing and authorizing the City in writing to
obtain information from criminal justice agencies,
financial institutions, Federal, State and local
government agencies, and other persons and entities.
The written authorization shall include consent to
release the information to the City for use in connection
with the business license.
(k) The applicant possesses a notarized, signed, and dated
statement indicating to the City that the applicant will
hold harmless, indemnify, and defend the City against
all claims and litigation arising from the issuance of a
licenses, including any claims and litigation arising
from the establishment, operation, or ownership of the
medical cannabis establishment.
c. The Tax Collector or Citv shall issue a business license or a reiection
with a written explanation, to an applicant within 45 days of the
applicant's written request for a business license. The failure of the
Tax Collector to issue a business license within the 45 day period shall
be deemed an acceptance of the application for the business license
and the medical cannabis business shall be permitted tooperate.
d. The business license shall be valid for two (2) vears, irrespective of
whether or not the business is active operating during that period. An
application for renewal of a medical cannabis business license must be
filed no later than thirty (30) calendar days prior to the expiration of
the registration, but no earlier than sixty (60) calendar days prior to the
expiration of the registration. A registration shall be renewed for an
additional period of two (2)years by submitting an application to the
Tax Collector or City.
e. The fee required for application and registration for a medical cannabis
business license shall not exceed five hundred dollars ($500.00).
2. No permit required: The People of the City of Costa Mesa herebv declare
that the operation of a medical cannabis dispensary in compliance with this
Chapter is not detrimental to the public health, safety, welfare, or moral
standards of the City. As such, the City shall not require the medical cannabis
16 -
MEDICAL CANNABIS CONTOL ACT
business to obtain any pecial use permit, conditional use permit, or any other
permit pursuant to any section of this code specifically, but not limited to
Sections 9-33 and 9-114, as a condition president or condition subsequent to
obtaining a business license and/or business tax registration certificate.
Additionally, no special site plan, variance, or any other permit or certificate
shall be required for a medical cannabis business, other than those specified in
this Chapter.
3. Business tax registration certificate — Transfer: Notwithstanding Section
9-44, Medical cannabis Business licenses shall be transferable only so long as
the medical cannabis business taxed is transferred, whether by sale or
otherwise, to another person or entity under such circumstances that the real
or ultimate ownership of the business after the transfer is substantially similar
to the real or ultimate ownership existing before the transfer and the transferee
meets all the non-priority registration requirements listed in Subsections (a)
through (f) of Section 9-487(A.)(1.)(b.)_(i.).
4. Maximum number of businesses: City shall issue no more than eight (8)
business licenses for the operation of medical cannabis businesses, subject to
Subsections 4(a) below. If the number of certified medical cannabis
businesses falls below nine (9), then the City shall issue additional business
licenses pursuant to the terms of this Chapter.
a. City council shall have the discretion to increase but not decrease the
number of business licenses issued by the Tax Collector, City Treasury
Division Management Department, or City to medical cannabis
businesses pursuant to the terms of this Chapter.
5. Any such exercise of discretion under Section 4(a) above increasing the
number of new business licenses above the current maximum number of nine
(9) shall comply with the minimum non-priority registration standards
enumerated in in Subsections (a) through (fl of Section 9-487(A.)(1.)(b.)(i.).
SEC. 9-487.1. Operational requirements.
A medical cannabis business shall be immune to the prohibition set out in Section 9-486
and the remedies set forth in Costa Mesa MLulicipal Code, so long as that medical
camiabis business obtains a business license and complies with the following operational
requirements:
Safe radius restrictions: The medical cannabis business is not located within:
—17—
MEDICAL CANNABIS CONTOL ACT
A 600 -foot radius of a public school as defined under Health and Safety Code
§11362.768 (4
ii. The distances specified in this paragraph shall be the horizontal distance
measured in a straight line from the property line of the school to the property line
of the medical cannabis business without regard to intervening structures:
iii. Medical cannabis businesses shall be permitted in the following use districts or
zones in the City: AP, CL, C2, C1 -S, MG, MP, PDC, PDh C1 & TC Medical
cannabis businesses are prohibited in all other use districts or zones.
2. Non -concentration of businesses requirement: The medical cannabis businesses shall
be disbursed in accordance with the following:
i. A marijuana business shall not be located within a 1000 -foot radius of an,, oy ther
licensed medical cannabis business.
ii. The distances specified in this paragraph shall be the horizontal distance
measured in a straight line from the property line of the first licensed medical
cannabis business to the closest property line of the second medical cannabis
business without regard to intervening structures:
Delivery restrictions: The medical cannabis business shall not deliver marijuana to its
members within the City of Costa Mesa unless the medical cannabis business maintains
insurance for its managers, volunteers or employees who deliver the marijuana and the
medical cannabis business maintains a location within the City of Costa Mesa which
possesses a business license under this Chapter.
4. License requirements: The medical cannabis business shall maintain a valid state Board
of Equalization state Seller's permit in the name of the business
Insurance Requirement: The medical cannabis business shall possesses a commercial
general liability insurance policy (bodily injury,property, damage and medical cannabis
liability), which specifically includes liability for medical cannabis.
6. Restriction of minors on premises: The medical cannabis business shall not allow
minors under the age of 18 years to enter its premises during any hours of operation
7. Restriction of minors as employees: It shall be unlawful for any medical cannabis
business to employ any person who is not at least 18 years of age.
8. Restriction on hours of operation: Hours of operation are limited to the hours between 9
a.m. and 10 p.m., seven days a week.
9. Visible marijuana restrictions: Any marijuana within a medical cannabis business shall
not be visible with the naked eye from the exterior of the business's premises
—Is—
MEDICAL CANNABIS CONTOL ACT
10. Alcohol restrictions: The medical cannabis business shall prohibit the sale, dispensing,
or consumption of alcoholic beverages at its location, in the parking area of the location,
or within fifty (50) feet of the business.
11. Premises use restrictions: The medical cannabis business shall not allow any persons to
inhale, smoke, eat, ingest, or otherwise consume marijuana at the location, in the parking
areas of the location, within fifty (50) feet of the premises, or in those areas restricted
under the provisions of California Health and Safety Code section 11362.79. This
prohibition shall not apply to a qualified patient's use of marijuana for his or her own
medical needs if the qualified patient's permanent legal residence is at the medical
cannabis business's location, nor shall this prohibition limit or conflict with the
exceptions provided in local and state law that permit smoking in designated areas within
licensed residential medical and elder care facilities.
12. Legal notice reauirements: A sign shall be posted inside the medical cannabis
businesses stating substantially as follows: "The diversion of cannabis for non-medical
purposes is a violation of State Law. Loitering at the location of a medical cannabis
dispensing or business for an illegal purpose is prohibited by California Penal Code
section 647(h). No medical cannabis shall be smoked, ingested or otherwise consumed on
the premises of the business or within fifty (50) feet of a medical cannabis business"
Such sign shall be printed in 14 -point font or larger upon 8 % by 11 paper and posted at
some conspicuous part of such site.
13. Restrictions relatine to cultivation, manufacturing, and processine: Medical
cannabis businesses shall exchange, sell, transfer, and distribute only marijuana or
cannabis cultivated, manufactured, or processed in the State of California and that has not
left the State before arriving at the business and that has been cultivated only by, and
provided only to, its verified members in a closed-circuit of production and consumption,
14. Medicine inventory restrictions: The medical cannabis business may possess and
cultivate a reasonable quantity of dried marijuana and marijuana plants to meet the
personal medical needs of their members.
15. Employee background requirements: The medical cannabis business shall utilize the
Live Scan background check system as set forth in this Article prior to employing any
manager, volunteer or employee. The medical cannabis businesses' managers must be
registered members of the medical cannabis business. Verification of all Live Scan
applications received by a medical cannabis business shall be processed and received by
the Costa Mesa Police Department in accordance with California Department of Justice
guidelines.
16. Employee background restrictions: Prior to being offered a position of management or
employment at a medical cannabis business, an applicant for a position of manager,
volunteer, or employee of the medical cannabis business who dispenses medical cannabis
19
MEDICAL CANNABIS CONTOL ACT
must submit and successfully pass an annual Live Scan background check by December
31 of each year in order to be employed at the medical cannabis business. A failed Live
Scan is any Live Scan that shows a felony conviction having occurred within theap st 7
years and/or shows that the manager, volunteer or employee is currently on parole or
probation for the sale or distribution of a controlled substance.
i. For the purposes of this section, a conviction of a felony that has been dismissed
withdrawn, expunged, or set aside, whether pursuant to California Penal Code
section 1203.4, California Penal Code section 1000, California Penal Code
section 1385 or any other judicial ruling or prosecution agreement, shall not be
deemed a felony conviction and, conse uently, shall not result in a failed Live
Scan.
17. Patient confidentiality: In order to protect confidentiality, the medical cannabis business
may maintain records of all qualified patients with a valid identification card and primary
caregivers with a valid identification card using only the identification card number
issued by the State or County pursuant to California Health and Safety Code section
113 62.7, et seq.
18. Manufacture of concentrated cannabis restrictions: The medical cannabis business
shall not participate in or otherwise engage in the manufacture of concentrated cannabis
in violation of California Health and Safety Code section 11379.6.
19. Security requirements: The medical cannabis business shall provide the following
security measures:
the medical cannabis business shall maintain an alarm system reasonably
designed to ensure the safety of persons and to protect the premises from theft;
ii. the business shall provide a security guard patrol for the premises during all hours
of operation;
iii. the security guard patrol shall be a duly -licensed and uniformed security guard
ap trol.
20. Packaging requirements: All medical cannabis businesses shall distribute all non -live
marijuana in sealed packaging or in "Child Proof' containers equipped with either a
"Push or Turn", "Reversible" top vial, or "Pop Top" or "Squeeze Top" locking
mechanism.
21. Warning labels requirements: All medical cannabis packaging shall contain a warning
that the product contains marijuana, and it is to be consumed only with a physician's
recommendation.
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MEDICAL CANNAWS CONTOL ACT
22. Signage restrictions: Outdoor signage on medical cannabis business premises shall
comply with all City signage restrictions and shall not contain pictorial representations of
the marijuana plant or pictorial representations of marijuana use.
23. Edible restrictions: Medical cannabis businesses that prepare, dispense or sell edible
medical cannabis products, or food containing any form of medical cannabis, must
comply with and are subject to the provisions of all relevant state and local laws
regarding the preparation, distribution, and sale of food. Failure to obtain and comply
with all necessary permits related to the preparation, distribution, and sale of food will be
an express violation of this Chapter
24. Odor restrictions: A business shall have an air treatment filtration or ventilation system
that reasonably prevents odors generated from the storage of marijuana on the business
property.
25. Taxation of medical cannabis businesses: The rate of sales tax and use tax imposed by
this Chapter shall be:
i. Every person engaged in operating or otherwise conducting a medical cannabis
busines not otherwise specifically taxed by other business tax provisions of this
Chapter, shall pay a business tax of six (6) percent or $60.00 for each $1000.00 of
gross receipt or fractional parts thereof on all proceeds from the distribution, sale
transfer of medical cannabis by the operation of a medical cannabis business
ii. One (1) percent or $10.00 for each $1,000 on the sale of all other tangible
personal property at retail.
iii. For the pun
poses of this Section, the above taxes apply only prospectively. The
city shall make no claim, current, retroactive, or prospective for payment by any
medial marijuana business or any other City tax except for the City portion of any
Sales Tax collected by the California State Board of Equalization.
iv. For the purpose of this section, a "medical cannabis business" means any activity
regulated or permitted by Chapter VI of this Code and California Health and
Safety Code sections 113 62.5, et seq., that involves transporting, dis ensin
delivering, providing or manufacturing compounding, converting, processing,
preparing, storing_ packaging, or testing harvesting of any part of the marijuana
plant for medical purposes.
Sec. 9-488. Cultivation of medical cannabis: Medical cannabis businesses may cultivate a
reasonable amount of mariivana consistent with their member patient's needs. All medical
cannabis cultivation subject to this Chapter shall be concealed from public view at all stages of
growth, and there shall be no exterior evidence of cultivation occurring at the premises from a
public right of way or from an adjacent parcel. Medical cannabis cultivation subject to this
Chapter shall not create unreasonably offensive odors, create excessive dust, noise, heat, smoke,
or other impacts that are unreasonably disturbing to persons of normal sensitivity present on
adiacent propert
Sec. 9-489. Transportation of medical cannabis: Activities entailing the transportation of
medical cannabis in accordance with the Compassionate Use Act, the Medical marijuana
program act, The Attorney General Guidelines, and this Chapter, shall be lawful only when
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MEDICAL CANNABIS CONTOL ACT
conducted by a participant of a recognized medical cannabis business, or collective, or
cultivation site for delivery to a participant member of the same medical cannabis collective or
medial marijuana business of the same medical cannabis collective or association when the
quantitytransported and the method, timing, and distance of the transportation are reasonably
related to the medical needs of the qualified patient or medical cannabis businesses receiving the
medication.
Sec. 9-490. Violation and enforcement: Each violation of this Chapter shall constitute a
separate violation and shall be subject to all remedies and enforcement measures authorized by
Costa Mesa Municipal Code. Additionally, as a nuisance per se, any violation of this Chapter
shall be subject to legally authorized remedies, including procedures for injunctive relief,
disgorgement and payment to the City of any and all monies unlawfully obtained, costs of
abatement, costs of investigation, attorney's fees, and any other relief or remedy available at law
or equity. The City may also pursue any and all remedies and actions available and applicable
under local and state laws for any violations committed by the medical camiabis business and
persons related or associated with such medical cannabis business.
Sec. 9-491. Majority approval; Effective date: This Measure shall be effective only if
approved by a majority of voters and shall go into effect immediately Uon passage.
Sec. 9-492. Competing measures: In the event that this Measure and another Measure or
Measures relating to the regulation of medical cannabis in the City of Costa Mesa shall appear on
the same ballot, the provisions of the other Measures shall be deemed to be in conflict with this
Measure. In the event that this Measure shall receive a greater number of affirmative votes, the
provisions of this Measure shall prevail in their entirety, and the provisions of the other relating
to the regulation of medical cannabis in the City of Costa Mesa shall be null and void.
Sec. 9-493. Amendment and repeal: The provisions of the Costa Mesa Municipal Code
added by, amended by, or contained in this initiative Measure may be amended only as provided
in each section. The provisions of the Costa Mesa Municipal Code added by, amended by, or
contained in this initiative measure shall not be repealed, except by an ordinance adopted either
by petition or by the Council at its own instance and adopted by a majority vote of the electors.
Sec 9-494. Severability: If any portion of this initiative Measure is for any reason held to be
unconstitutional, invalid or unenforceable by a court of competent jurisdiction, that invalidity
shall not affect the remaining portions of this initiative Measure that can be implemented without
the invalid provision, and, to this end, the provisions of this initiative Measure are severable.
Sec. 9-495. Statewide regulation: This initiative Measure, and the provisions herein, shall
be read consistent with any statewide regulation of medical camiabis or recreational marijuana
that is promulgated by the legislature or by voter approval in the future.
Sec. 9-496. Special or General election: This initiative Measure shall be set for a special or
regular election at the earliest time allowed by law.
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MEDICAL CANNABIS CONTOL ACT
SECTION 4 — AMENDMENTS TO COSTA MESA MUNICIPAL CODE TITLE 9,
CHAPTER 1, ARTICLE 5, SECTION 9-32.
The People of the City of Costa Mesa do hereby enact and ordain that Title 9, Chapter 1,
Article 5, Section 9-32, entitled Unlawful Business Not Authorized, is hereby amended to read
as follows: (All underlined language is new and to be inserted. All language struck through is to
be deleted.)
Sec. 9-32 Unlawful business not authorized.
No business license or permit issued under the provisions of this title, nor the payment of any tax
required under the provisions of this title shall be construed as authorizing the conduct or
continuance of any illegal orismcss businesses deemed illegal by state law or a legal business in
an illegal manner.
SECTION 5 - AMENDMENTS TO COSTA MESA MUNICIPAL CODE TITLE 13,
CHAPTER 1, ARTICLE 2, SECTION 13-6.
The People of the City of Costa Mesa do hereby enact and ordain that Title 13, Chapter 1, Article
2, Section 13-6, entitled, is hereby amended to read as follows: (All underlined language is new
and to be inserted. All language struck through is to be deleted)
Section 13-6. Definitions
following:by any other means made aN,ailabla to and/or Elistr-ibtAed by or to t1ff ee (3) or fnere of the
a primat., ',ualified patient, of a person with an identification eard4ifl
strie! aeoer-clanee with State Health and Safety Gode Seefiens 11362.5 e! seq. and 1136-2.7 L4
seqwhich shall
btit not be lifnited
any &eility or loeation
in the f
ro engaging
sale, dispensation, of distribution of marijuana for medical purposes that Elees not have , �
aetive rele in the eultivation- -of the marijuana product that it sells, dispenses, or distributes,,-er
sale, ElispensatioH, or distribution.
Medical Cannabis Business. An unincorporated or incorporated entity or association of qualified
patients and/or primary caregivers and/or persons with identification cards, who provide money
and in-kind contributions, reimbursements, and reasonable compensation towards the
aforementioned entity's actual expenses for activities including, but not limited to; planting,
cultivation, harvesting, transporting, manufacturing, compounding, converting, processing,
preparing, storing, packaging_ providing and/or retail sales of medical cannabis. A medical
cannabis business may provide medical cannabis, products, services and assistance to qualified
patients, persons with a medical marijuana identification card (as set forth in the MMPA), or the
primary caregiver of such persons. Medical cannabis businesses may assist with the acquisition
of skills necessary to cultivate or provide marijuana for medical pruposes in compliance with
State Law. A medical cannabis business includes any facility, building, structure or location,
whether permanent, or temporary, where marijuana is made available, sold, given away,
-23-
MEDICAL
23MEDICAL CANNABIS CONTOL ACT
distributed, or otherwise provided in accordance with Health and Safety Code section 11362.5 et
seg. A medical cannabis business includes medical cannabis "cooperatives" and marijuana
delivery services.
(1) "Medical cannabis business" shall not include, nor be interpreted to include, any of
the following:
a. Any location which is a legal dwelling zoned exclusively for residential use
and not permitted for any commercial activity where three (3) or less people
who reside at a property cultivate marijuana.
b. The location of any clinic licensed pursuant to Chapter 1 (commencing
with Section 1200), a health care facility licensed pursuant to Chapter 2
(commencing with Section 1250), a residential care facility for persons with
chronic life-threatening illness licensed pursuant to Chapter 3.01
(commencing with Section 1568.01), a residential care facility for the elderly
licensed pursuant to Chapter 3.2 (commencing with Section 1569), a hospice,
or a home health agency licensed pursuant to Chapter 8 (commencing with
Section 1725), any facility pecified in Division 2 of the California Health and
Safety Code where: (i) a qualified patient or person with an identification card
receives medical care or supportive services, or both, from the clinic, facility,
hospice, or home health agency; and(ii) the owner or operator, or one of not
more than three employees designated by the owner or operator, of the clinic,
facility, hospice, or home health agency has been designated as a primary
caregiver pursuant to California Health and Safety Code Section 11362.7(d)
by that qualified patient or person with an identification card.
SECTION 6 - AMENDMENTS TO COSTA MESA MUNICIPAL CODE TITLE 13,
CHAPTER 4, SECTION 13-30, ROW 31a OF TABLE 13-30 THE COSTA MESA LAND
USE MATRIX.
The People of the City of Costa Mesa do hereby enact and ordain that Title 13, Chapter 4,
Section 13-30, Table 13-30, Row 3la, entitled City of Costa Mesa Land Use Matrix, is hereby
amended to read as follows: (All underlined language is new and to be inserted. All language
struck through is to be deleted.)
_24_
MEDICAL CANNABIS CONTOL ACT
Section 13-30, Table 13-30
Section 13-30, Table 13-30, Row 31a
—25—
MEDICAL CANNABIS CONTOL ACT
Zones
LAND USES
R
R
R
R
A
C
C
C
C
T
M
M
P
P
P
P
P
P
I
I
P
1
2
2
3
P
L
1
2
1
C
G
P
D
D
D
D
D
D&&
M
H
S
R
R
R
R
C
I
R
R
D
D
L
M
H
N
S
D
D
D
C
M
31a. Medical
P
P
P
P
P
P
P
P
P
P
ma
dispensafy
Cannabis
Businesses
(subject to the
requirements
of TITLE 9,
CHAPTER VI.
MEDICAL
CANNABIS
BUSINESSES)
—25—
MEDICAL CANNABIS CONTOL ACT
RESOLUTION NO. 16-30 ATTACHMENT 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,
CALLING AND GIVING NOTICE FOR THE HOLDING OF A GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 8, 2016, FOR THE SUBMISSION TO THE VOTERS
OF A PROPOSED ORDINANCE
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS
FOLLOWS:
WHEREAS, pursuant to authority provided by statute a petition has been filed with the
legislative body of the City of Costa Mesa, California, signed by more than fifteen percent
(15%) of the number of registered voters of the city to submit a proposed ordinance entitled:
Allow Operation Of Up To Four Licensed Medical Marijuana Businesses In City of Costa Mesa;
and
WHEREAS, the City Clerk has caused to be examined, through the office of the Orange
County Registrar, the records of registration and is in receipt of that certain "Certificate as to
Verification of Signatures on Petition," from the Orange County Registrar, has examined such
certificate and has accepted as true and correct the findings contained therein and, thereby,
ascertained that the petition is signed by the requisite number of voters; and
WHEREAS, the City Council has not voted in favor of the adoption of the ordinance; and
WHEREAS, the City Council is authorized and directed by statute to submit the proposed
ordinance to the voters;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
SECTION 1. The foregoing recitals are true, correct, and adopted by the City Council as if
set forth in full.
SECTION 2. That pursuant to the requirements of the laws of the State of California relating
to general law cities there is called and ordered to be held in the City of Costa Mesa, California
on November 8, 2016 a General Municipal Election for the purpose of submitting the following
proposed ordinance:
Resolution No. 16-30 Page 1
Measure _: Allow Operation of up to Four Licensed
Medical Marijuana Businesses in the City of Costa Mesa
Response
Vote
Shall the ordinance, to allow operation of up to four medical
marijuana businesses with: six percent tax on medical
Yes
marijuana (estimated annual tax revenues $24,000 to
$456,000); required industry specific licenses; required
No
operator permits; regulations subject to change by City
Council including increasing businesses; precedence to prior
businesses; and locations limited to commercial and
industrial areas, be adopted?
SECTION 3. That the proposed complete text of the ordinance submitted to the voters is
attached as Exhibit A.
SECTION 4. That the vote requirement for the measure to pass is a majority (50% +1) of
the votes cast.
SECTION 5. That the ballots to be used at the election shall be in the form and content as
required by law.
SECTION 6. That the City Clerk is authorized, instructed, and directed to coordinate with
the County of Orange Registrar of Voters to procure and furnish any and all official ballots,
notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in
order to properly and lawfully conduct the election.
SECTION 7. That the polls for the election shall be open at 7 a.m. of the day of the election
and shall remain open continuously from that time until 8 p.m. of the same day when said polls
shall be closed, pursuant to Election Code Section 10242, except as provided in Section 14401
of the Elections Code of the State of California.
SECTION 8. That the Orange County Registrar of Voters is authorized to canvass the
returns of the General Municipal Election.
SECTION 9. That in all particulars not recited in this resolution, said election shall be held
and conducted in accordance with the provisions of law regulating the statewide election.
SECTION 10. That notice of the time and place of holding the election is given and
the City Clerk is authorized, instructed, and directed to give such further or additional notice of
the election, in the time, form, and manner required by law.
Resolution No. 16-30 Page 2
SECTION 11. The Costa Mesa City Council hereby requests that the Orange County
Registrar of Voters conduct all necessary services related to the Costa Mesa General Municipal
Election. Pursuant to Elections Code Section 10002, the Finance Director, or his/her designee,
is hereby authorized to reimburse the County for the actual cost incurred in conducting the
election upon receipt of a bill stating the amount due as determined by the elections official.
SECTION 12. That the City Clerk shall certify to the passage and adoption of this
resolution.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the
City of Costa Mesa on this 7th day of June, 2016.
Stephen M. Mensinger, Mayor
ATTEST:
Brenda Green, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROVED AS TO FORM:
Thomas Duarte, City Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
foregoing Resolution No. 16-30 was duly passed and adopted by the City Council of the City of
Costa Mesa at a regular meeting held on the 7th day of June, 2016, by the following roll call
vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa
Mesa this 8th day of June, 2016.
BRENDA GREEN, CITY CLERK
Attachment: Exhibit A — Proposed Ordinance
Resolution No. 16-30 Page 3
Exhibit A
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
AN ORDINANCE OF THE PEOPLE OF THE CITY OF COSTA MESA AMENDING THE
THE COSTA MESA ZONING CODE AND MUNICIPAL CODE
Corrunittee of proponents, who are registered voters of the City of Costa Mesa, sponsoring the
petition:
Taylor Webster Michael Levesque
TEXT OF PROPOSED MEASURE:
"AN INITIATIVE TO PROVIDE REVENUE TO COSTA MESA CITIZENS"
WHEREAS, the Costa Mesa Police Department C CMPD") has reported that, as the
number of marguana dispensaries and corrunercial growing operations proliferated without
sufficient legal oversight, the City and its neighborhoods have experienced negative secondary
effects, including an increase in crone at certain locations associated with unregulated
marguana dispensaries;
WHEREAS, The League of California Cities and California Chief of Polices Association
have authored statewide legislation, presented by veteran State Senator Lou Correa to provide a
clear road nip for reasonable statewide implementation of Proposition 215 and the Medical
Marguana Program Act of 2004 in California;
WHEREAS, legislation regulating the medical marijuana industry is supported by the
Association for Los Angeles Deputy Sheriffs; Association of Orange County Deputy Sheriffs;
California Fraternal Order of Police; International Faith Based Coalition; Long Beach Police
Officers Association; Los Angeles County Professional Peace Officers Association; Los Angeles
Police Protective League; Riverside Sheriffs Association and Santa Ana Police Officers
Association;
WHEREAS, it is in the interest of the citizens of Costa Mesa to have medical
cooperatives operate with reasonable regulation that mirror those put forward by The League of
California Cities and California Chief of Polices Association in order to regulate the distribution
of medical marijuana, which if unregulated threatens the interests of local neighborhoods and
dispensaries, as well as negatively impacting those seriously ill residents of the City;
WHEREAS, the City has a substantial and clear interest in ensuring that medical
marijuana is distributed in an orderly manner, in protecting the public health, safety and welfare
of its residents, its dispensaries, the neighborhoods in which Medical Cooperative operate, while
ensuring compassionate access by seriously ill residents to medical marijuana in accordance with
the CUA and the MMPA;
WHEREAS, the City seeks to create a gross receipts tax on medical cooperative at a rate
of $60 per $1,000 of gross receipts, which will help to fund necessary general municipal
services, which may include but is not limited to, code enforcement, building inspections, police
protection and crone suppression services, fire prevention and suppression services, which will
facilitate the purposes of this law and which will fiend necessary services as determined by the
City Council;
NOW, THEREFORE,
THE PEOPLE OF THE CITY OF COSTA MESA HEREBY ORDAIN AS FOLLOWS:
Section 1. Code Amendment. Section 16-14, of Chapter II in Title 16 of the Costa Mesa
Municipal code is hereby amended in its entirety to read as follows:
(a) The rate of sales tax and use tax imposed by this chapter shall be one per cent on all
businesses except for medical cooperative.
(b) Every person engaged in operating or otherwise conducting a busyness where marijuana
is cultivated, distributed or transferred pursuant to Title 9, Chapter VI shall pay a tax
proportionate to gross receipts earned within the taxing jurisdiction at a rate of six (6) per
cent.
(c) The City Council may impose the tax authorized by this section at a lower rate and may
establish exemptions, incentives, or other reductions as otherwise allowed by California
law. No action by the Council under this paragraph shall prevent it fi-om later increasing
the tax, up to six per cent, or removing any exemption, incentive, or reduction and
restoring the maximum tax specified in this section.
Section 2. Code Amendment. Row 31 a of the Costa Mesa Land Use Matrix Table in section 13-
30 of Chapter IV, Title 13, is hereby amended to read as follows:
Section 13-30, Table 13-30, Row 31a
Zones
LAND USES
R
R
R
R
A
C
C
C
C
T
M
M
P
P
P
P
P
P
I
I
P
1
2
2
3
P
L
1
2
1
C
G
P
D
D
D
D
D
D&&
M
H
S
R
R
R
R
C
I
R
R
D
D
L
M
H
N
S
D
D
D
C
M
3Ia. Medical
P
P
P
P
P_
P
P
P
P
P
cooperative
(Subject to the
requirements to
TITLE 9,
CHAPTER V1,
Medical
cooperative)
Section 3. Code Amendment. TITLE 9 is hereby amended to include TITLE 9, Chapter VI,
henceforth entitled "Medical Cooperative Regulations" and is hereby amended in its entirety to
read as follows:
Sec. 9-49 L Purpose.
The people of the city of Costa Mesa hereby declares that the purpose of the regulations
in this chapter is to provide a uniform and enforceable set of rules for the operation of medical
cooperative, in compliance with state law and firture state-wide regulation, to prevent the
proliferation of medical cooperatives, to tax the distribution of medical marijuana as well as to
protect the public health, safety and welfare of residents.
Sec. 9-482. Definitions.
The fallowing terms and phrases, whenever used in this section, shall be construed as defined in
this section:
(a) "Medical cooperative" or "Cooperative" shall be defined in section 13-6 if Title 13 of the
Costa Mesa Municipal Code.
(b) "Building" means any structure having a roof supported by columns or walls, for the
housing, shelter or enclosure of persons, animals, chattels, or property of any kind.
(c) "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 image data
along with personal descriptor information to computers at the DOJ for completion of a
criminal record check, or such other comparable inkless electronic fingerprinting and
automated background check process as determined by the City Council\
(d) "Live Scan application" means a form developed by the City Clerk to request Live Scan
services and to contain information relevant to the Live Scan process.
(e) "Location" means any parcel of land, whether vacant or occupied by a building, group of
buildings, or accessory buildings, and includes the buildings, structures, yards, open
spaces, lot width, and lot area.
(t) "Establishment." Includes any of the following:
a. The opening or commencement of any such business as a new business;
b. The conversion of an existing business, whether or not a medical cooperative, to
any of the medical cooperative defined herein;
c. The addition of any of the medical cooperative defined herein to any other
existing medical rnarjuana business; or
d. The relocation of any such medical cooperative.
(g) "Marijuana" shall be construed as defined in California Health and Safety Code Section
11018 and father shall specifically include any product that contains marijuanna or a
derivative of marijuana.
(h) "Operator" means any person with responsibility for the establishment, organization,
registration, supervision, or oversight of a medical cooperative, including but not limited
to any person who performs the functions of president, vice president, board member,
director, owner, operating officer, financial officer, secretary, or treasurer of the medical
cooperative.
O "Applicant." A person who is required to file an application for a license wider this
chapter, including an individual owner, managing partner, officer of a corporation, or any
other operator, manager, employee, or agent of a medical cooperative or an operator of a
medical cooperative.
(j) "Licensee." The person or entity to which a rnedical cooperative license or medical
cooperative operator's license is issued.
(k) "Chief of Police." The Chief of Police of the City of Costa Mesa or the authorized
representatives thereof.
(1) 'Tremises" means the space in any buildings of a medical cooperative together with the
spaces within any structures, yards, open spaces, lot width, and lot area at a location that
is occupied or used in the operation of the medical cooperative.
(m)'Terson" means any Cooperative, individual, partnership, co -partnership, fim>,
association, joint stock company, corporation, linited.
(n) "Structure" means anything constructed or erected which is supported directly or
indirectly on the ground, but not including any vehicle.
(o) 'Vehicle" means a device by which any person or property may be propelled, moved, or
drawn upon a street, including but not limited to a device moved exclusively by human
power.
(p) The following words or phrases when used in this Section shall be construed as defined
in California Health and Safety Code Sections 1746, 11362.5, 11362.7 and 11834.02
a. "Alcoholism or drug abuse recovery ortreatinent facility";
b. "Hospice';
c. "Identification card";
d. `Terson with an identification card"
e. `Trinary Caregiver'; and
E "Qualified Patient;
Sec. 9-483. Exceptions.
This chapter shall not apply to:
(a) A health care facility licensed pursuant to Chapter 2 (comvnencing with Section
1250),
(b) A residential care facility for persons with chronic life- threatening illness licensed
pursuant to Chapter 3.01 (commencing with Section 1568.01),
(c) a residential care facility for the elderly licensed pursuant to Chapter 3.2
(commencing with Section 1569),
(d) a hospice, or a home health agency licensed pursuant to Chapter 8 (commencing with
Section 1725), all of Division 2 of the California Health and Safety Code where:
i. a qualified patient or person with an identification care receives medical care or
support services, or both, from the clinic facility, hospice, or home health agency,
and
ii. the owner or operator, or one of not more than three employees designated by the
owner or operator, of the clinic, facility, hospice, or home health agency has been
designated as a prinary caregivers pursuant to California Health and Safety Code
Section 11362.7(d) by that qualified patient or person with an identification care,
or
(e) Any vehicle daring only that time reasonably required for its use by:
i. A qualified patient or person with an identification card to transport marijuana for
his or her personal medical use, or
ii. A primary caregiver to transport, distribute, deliver, or give away marijuana to a
qualified patient or person with an identification card who has designated the
individual as a prnnary caregiver, of the personal medical use of the qualified
patient or person with an identification card, in accordance with California Health
and Safety Code Section 11362.76
Sec. 9-484. Zoning Requirements.
In addition to the requirements of this chapter, all medical cooperative shall comply with
the requirements set forth in Article 1, Chapter 1X, of Title 13 of the City of Costa Mesa
Municipal Code.
Sec. 9-485. License required for each location; display of license.
A separate medical cooperative license is required for each location within the boundaries of the
City of Costa Mesa at which a regulated medical cooperative is to be established. Tine
requirements of this chapter for a medical cooperative license are separate and in addition to a
business license, or business tax registration certificate, required under Chapter I of this code.
Every regulated cooperative shall display its license prominently in an area open to the public at
each location, at all times when the location is open for business.
Sec. 9-486. Term of medical cooperative license.
An approved medical cooperative license shall be valid until revoked.
Sec. 9-487. Application for medical cooperative license.
(a) An applicant requesting issuance or renewal of a medical cooperative license shall file a
written, signed and verified application or renewal application in a form provided by the
Chief of Police. Each application shall be accompanied by a non-reflrndable fee for filing
or renewal in an amount determined by resolution of the city council, which fees will be
used to defray the costs of investigation, inspection and processing of such application.
Such fee shall not exceed the reasonable cost of investigation, inspection and processing
Of such application. License fees required under this chapter shall be in addition to any
license, permit or fee required under any other chapter or title of the City of Costa Mesa
Municipal Code.
(b) An application for a medical cooperative license shall contain the following information:
1. 'The applicant shall be either a non-profit mutual benefit corporation or a statutory
agricultural or consumer cooperative incorporated in the state of California.
2. The applicant's complete naive, the date of its incorporation, evidence that the
corporation is in good standing under the laws of California, the names and
capacity of all officers and directors, the name of the registered corporate agent
and the address of the registered olfice for service of process.
3. If the applicant intends to operate the medical cooperative under a name other
than that of the applicant, the applicant shall file the fictitious name of the medical
cooperative and show proof of registration of the fictitious name at the time it
submits its application.
4. A description of the type of medical cooperative for which the license is requested
and the proposed address where the medical cooperative will operate, plus the
names and addresses of the owners and lessors of the medical cooperative site.
5. The address to which notice of action on the application is to be mailed.
6. The names of all operators who will manage the distribution of marijuana at the
medical cooperative or cultivate marguana on behalf of the medical cooperative,
who are required by section 9-490 to obtain a medical cooperative operator
permit.
i. The medical marijuana collective shall make available to the Chief of
Police the names of each person who manages the dispensing of marguana
at the medical cooperative together with a successful Live Scan
background check of each such person.
1. A unsuccessful or failed Live Scan is any Live Scan that shows a
felony conviction having occurred within the past 10 years and/or
shows that the manager is currently on parole or probation for the
sale or distribution of a controlled substance;
7. A certificate and straight-line drawing prepared within thirty (30) days prior to
application depicting the building and the portion thereof to be occupied by the
medical cooperative, and: (1) the property Pune of any other medical cooperative
within one thousand (1,000) feet of the primary entrance of the medical
cooperative and any private or public school; and (2) the property lilies of ally
public park, within one six hundred (600) abet of the primary entrance of the
medical cooperative; and the property lines of any residential zone which is
abutting or across the street from a lot which the medical cooperative for which
the license is requested.
(c) if the Chief of Police determines that the applicant has completed the application
innproperly, the Chief of Police shall promptly notify the applicant of such fact and, on
request of the applicant, grant the applicant an extension of time of ten (10) days or less
to complete the application properly. In addition, the applicant may request an extension,
not to exceed ten (10) days, of the time for the Chief of Police to act on the application.
The time period for granting or denying a license shall be stayed during the period in
which the applicant is granted an extension of time.
(d) The fact that an applicant possesses other types of state or city permits or licenses does
not exempt the applicant from the requirement of obtaining a medical cooperative
license.
Sec. 9-488. Investigation and action on medical cooperative license application.
(a) Upon receipt of completed application and payment of the application and license fees,
the Chief of Police shall innnedtare ly stamp the application as received and promptly
investigate the information contained in the application to determine whether the
applicant shall be issued a medical cooperative license.
(b) Within thirty (30) days of receipt of the completed application, tine Chief of Police shall
complete the investigation, grant or deny the application in accordance with the
provisions of this section, and so notify the applicant as follows:
1. The Chief of Police shall write or stamp "Granted" or "Denied" on the application
and date and sign such notation.
2. If the application is denied, the Chief of Police shall attach to the application a
statennent of the reasons for denial.
3. If the application is granted, the Chief of Police shall attach to the application a
medical cooperative license.
4. The application as granted or denied and the license, if any, shall be placed in the
United States mail, first class postage prepaid, addressed to the applicant at tine
address stated in the application.
5. The Chief of Police shall grant the application and issue the medical cooperative
license upon findings that the proposed business meets the locational criteria of
section 13-132 of Fitle 13; and that the applicant Inas met all of the development
and performance standards and requirements of section 9-494(g) of this chapter,
unless the application is denied for one (1) or more of the reasons set forth in
section 9-489.
(c) If the Chief of Police neither grants the application within thirty (30) days after it is
stamped as received, the application shall deemed granted and the Chief of Police shall
issue of a medical cooperative license.
1. The Clvef of Police shall issue no more than four (4) medical cooperative
licenses, subject to subsection Sec. 9-488(c)1(i). If the number of licensed
medical cooperative fall below four (4), then the City shall issue additional
business licenses pursuant to the terms of this Chapter.
i. The City Council shall have the discretion to increase, but not decrease,
the number of licenses issued by the city Finance Director pursuant to the
terms of this Chapter.
(d) Medical cooperative priority review
1. Beginning on the date that is thirty (30) days after the effective date of this
ordinance, until the date that is forty-five (45) days after the effective date of this
ordinance, an applicant who meets the following requirements may subunit an
application for priority review. The applicant requirements for priority review are
as follows:
i. applicant is an active California non-profit mutual benefit corporation or
non-profit agricultural cooperative or non-profit consumer cooperative,
that was incorporated prior to May 22, 2014;
ii. the applicant has listed with the secretary of state a principal place of
business in the City of Costa Mesa;
iii. the applicant has been issued or has applied for a City of Costa Mesa
business license, issued in the name of the entity, for the purpose of
providing home care or therapeutic services, and the submissions of the
application or issuance of license occurred prior to May 22, 2014;
iv. the applicant, or an officer or director of the applicant, maintains a lease or
rental agreement in the City of Costa Mesa with a possession or start date
prior to May 22, 2014; and
v. the non-profit mutual benefit corporation or non-profit agricultural
cooperative or non-profit consumer cooperative maintains a California re-
sellers permit issued in the name of the entity at its principal place of
business in the City of Costa Mesa, prior to May 22, 2014.
Sec. 9-489. Denial of application for medical cooperative license.
(a) The Police department shall deny the application for any of the following reasons:
1. That the building, structure, equipment and location used by the business for
which a license is required herein do not comply with the requirements and
standards set for in section 9-494.
2. That the applicant, his or her employee, agent, partner, director, officer,
stockholder or manager has knowingly made any false, misleading or fi•audulent
statennent of material fact in the application for a license or in any report or record
required to be filed with the police department or other department of the city.
3. That the applicant has had any type of medical cooperative license revoked by
any public entity within two (2) years of the date of the application.
4. Within ten (10) years iunmediately preceding the date of the filing of the
application for a license under this chapter, the director or officer of applicant has
been convicted of a felony.
5. That on the date that the business for which a license is required herein
connmences, and thereafter, there will be no responsible adult on the premises to
act as manager at all times during which the business is open.
6. The required application fees have not been paid.
(b) In the case of the Chief of Police not acting within the time period under section 9-
487(d), the Chief of Police shall pant the application and issue the license.
Sec. 9-490. Medical cooperative operator permit.
(a) No person shall engage in or participate as an operator of a medical cooperative, without
a valid medical cooperative operator permit issued by the city. All persons who have
been issued a medical cooperative operator shall promptly supplement the information
provided as part of the application for the license required by section 9-488, with tine
names of all operators required to obtain a medical cooperative operator permit, within
thirty (30) days of any change h the information originally submitted. Failure to submit
such changes shall be grounds for suspension of the medical cooperative license.
(b) The Chief of Police shall grant, deny and renew medical cooperative operator permits.
(c) The application for a license shall be made on a form provided by the Chief of Police. An
original and two (2) copies of the completed and swom license application shall be filed
with the Chief of Police.
(d) The completed application shall contain the following information and be accompanied
by the following documents:
1. The applicant's legal name and any other names (including aliases) used by the
applicant;
2. Age, date and place of birth;
3. Height, weight, hair and eye color;
4. Present residence address and telephone number;
5. Whether the applicant has ever been convicted of felony within ten years of the
application date;
6. Proof of a Live Scan background check for all felony convictions within ten (10)
years of the application;
7. State driver's license or identification number;
8. Satisfactory written proof that the applicant is at least eighteen (18) years of age;
9. The applicant's fingerprints on a form provided by the police department, and a
color photograph clearly showing the applicant's face. Any fees for the
photographs and fingerprints shall be paid by the applicant;
10. If the application is made for the purpose of renewing a license, the applicant
shall attach a copy of the license to be renewed.
11. The completed application shall be accompanied by a non-refundable application
fee. `Ilse amount of the fee shall be set by resolution of the city council.
12. Upon receipt of an application and payment of the application fees, the Chief of
Police shall immediately stamp the application as received and promptly
investigate the application.
13. If the Chief of Police determines that the applicant has completed the application
improperly, the Chief of Police shall promptly notify the applicant of such fact
and grant the applicant an extension of time of not more than ten (10) days to
complete the application properly. In addition, the applicant may request an
extension, not to exceed ten (10) days, of the time for the city manager to act on
the application. The time period for granting or denying a license shall be stayed
during the period in which the applicant is granted an extension of time.
Sec. 9-491. hnvestigation and action on application for medical cooperative operator permit.
(a) Witltin fifteen (15) days after receipt of the properly completed application, the Chief of
Police shall grant or decry the application and so notify the applicant as follows:
a. The Chief of Police shall write or stamp "Granted" or "Denied" on the application
and date and sign such notation.
b. If the application is denied, the Chief of Police shall attach to the application a
statement of the reasons for denial.
c. If the application is granted, the Chief of Police shall attach to the application a
medical cooperative operator permit.
d. The application as granted or denied and the license, if any, shall be placed in the
United States mail, first class postage prepaid, addressed to the applicant at the
residence address stated ul the application.
e. The Chief of Police shall grant the application and issue the license unless the
application is denied for one (1) or more of the reasons set forth in subsection 9-
491(f) of this section.
i. If the Chief of Police neither grants nor denies the application within
fifteen (15) days after it is stamped as received, the application shall be
forwarded to the city finance department for issuance of a operator license.
f. The Chief of Police shall deny the application for any of the following reasons:
i. The applicant has knowingly made any false, misleading, or fraudulent
statement of a material fact in the application for a license or in any report
or document required to be filed with the application;
it. The applicant is under twenty-one (2 1) years of age;
iii. The applicant has been convicted of any felony within the last ten (10)
years. A license may be issued to any person convicted of a felony if the
conviction occurred more than ten (10) years prior to the date of the
application.
g. Each medical cooperative operator permit shall expire one (])year fi-om the date
of issuance and may be renewed only by filing with the Chief of Police a written
request for renewal, accompanied by the application fee and a copy of the license
to be renewed. The request for renewal shall be made at least thirty (30) days
before the expiration date of the license. When made less than thirty (30) days
before the expiration date, the expiration of the license will not be stayed.
Applications for renewal shall be acted on as provided herein for applications for
licenses.
h. Should the Chief of Police not act within the time period provided under this
section, the city finance director shall then grant the application no less than five
(days) following the expiration of time required section 9-491(e)i.
Sec. 9-492. Employment of Operators without operator licenses unlawful.
(a) It shall be unlawful for any medical cooperative to not have at least one licensed operator
on premises during the hours of operation.
(b) It shall be unlawful for any operator to allow any person to operate a medical cooperative
who is not in possession of a valid operator license.
Sec. 9-493. Suspension or revocation of medical cooperative licenses and medical cooperative
operator permits.
A medical cooperative license or Medical cooperative operator permit may be suspended or
revoked in accordance with the procedures and standards of this section.
(a) On determining that grounds for license revocation exist, the Chief of Police shall furnish
written notice of the proposed suspension or revocation to the licensee. Such notice shall
set forth the time and place of a hearing, and the ground or grounds upon which the
hearing is based, the pertinent Code sections, and a brief statement of the factual matters
in support thereof The notice shall be mailed; postage prepaid, addressed to the last
known address of the licensee, or shall be delivered to the licensee personally, at least ten
(10) days prior to the hearing date. Hearings shall be conducted in accordance with
procedures established by the Chief of Police, but at a minimum shall include the
following:
(b) All parties involved shall have a right to offer testimonial, documentary, and tangible
evidence bearing on the issues; may be represented by counsel; and shall have the right to
confront and cross-examine witnesses. Any relevant evidence may be admitted that is the
sort of evidence upon which reasonable persons are accustomed to rely in the conduct of
serious affair. Any hearing under this section may be continued for a reasonable time for
the convenience of a party or a witness. The Chief of Police's decision may be appealed
in accordance with section 2-300 et seq. of the Costa Mesa Municipal Code.
(c) A licensee may be subject to suspension or revocation of his/her license, or be subject to
other appropriate disciplinary action, for any of the following causes arising from the acts
or omissions of the licensee, or an employee, agent, partner, director, stockholder, or
manager of medical cooperative :
1. Tine licensee has knowingly made any false, misleading or fraudulent statement of
material facts in the application for a license, or in any report or record required to
be filed with the City.
2. The licensee, employee, agent, partner, director, stockholder, or manager of a
medical cooperative has knowingly allowed or permitted, and has failed to make
a reasonable effort to prevent the occurrence of any of the following on the
premises of the medical cooperative, or in the case of a medical cooperative
operator, the licensee has engaged in one (1) of the activities described below
while on the premises of a medical cooperative :
i. Any act of unlawful distribution of marijuana;
it. Any conduct prohibited by this chapter.
iii. Failure to abide by any disciplinary action previously innposed by an
appropriate city official.
(d) After holding the hearing in accordance with the provisions of this section, if the Chief of
Police finds and determines that there are grounds for disciplinary action, based upon the
severity of the violation, the Chief of Police shall impose one (1) of the fallowing:
1. A warning
2. Suspension of the license for a specified period not to exceed six (6) months; or
3. Revocation of the license.
i. Revocation ofthe license shall issue only after two prior determinations of
violation.
Sec. 9-494. Appeal of denial, suspension or revocation.
After denial of an application far a medical cooperative license or a medical cooperative operator
permit, or after denial of renewal ofa license, or suspension or revocation of a license, the
applicant or person to whom the license was granted may seek review of such administrative
action by the city council in accordance with the provisions of section 2-300 et seq. of the City of
Costa Mesa Municipal Code. Any proceeding to appeal such decision to the city council shall be
filed within seven (7) days of such decision. If the denial, suspension or revocation is affirmed
on review, the applicant, licensee may seek prompt judicial review of such administrative action
pursuant to California Code of Civil Procedure section 1094.5. The city shall make all reasonable
efforts to expedite judicial review, if sought by the licensee.
Sec. 9-495. Medical cooperative operational requirements.
The following development and performance standards shall be satisfied by a medical
cooperative and included in any approved medical cooperative license:
(a) No medical cooperative shall be operated in any mariner that permits the observation of
any marguana from outside the 'location.
(b) Parking lot lighting shall be provided to illuminate all off-street parking areas serving
such use for the purpose of increasing the personal safety of patrons and employees and
reducing the incidents of vandalism and theft. The lighting shall provide a level of
illumination not less than one (I) foot-candle, measured at the surface of die pavement, at
all areas or the parking lot. The lighting shall be shown on the required plot plans and
shall be reviewed and approved by the development services department.
(c) A medical cooperative shall be open or operating for business only between the hours of
8:00 a.m. and 10:00 p.m. on any particular day.
(d) No person under the age of eighteen (18) years shall be permitted within the premises at
any time.
(e) The medical cooperative shall possess a valid and Current State Board of Equalization
seller's permit;
(f) The medical cooperative shall not be located within:
1. 1000 foot radius of a "school" as defined under Health and Safety Code
11362.768 (h);
2. 600 foot radius of a public park, public library or licensed child care facility;
3. 1000 foot radius of another registered medical cooperative;
(g) Medical cooperative shall not allow alcohol to be purchased or consumed at the premises
or in any area of the location used for parking any vehicle;
(h) Medical cooperative shall only be located in a commercial zoned property or industrial
zoned property as allowed pursuant to section 13-30 of Chapter IV, Title 13.
(i) Medical Maryuana Business shall not be located on property lot abutting or across the
street fi•om a lot which is zoned for residential use. The above notwithstanding, this
subsection shall not prohibit a medical cooperative fiom locating across a street fiom any
land zoned residential if the medical cooperative and residential zone is separated by a
public thoroughfare with a minimum roadway width of 80 feet.
Sec. 9-496. Violations/penalties.
With the exception of any violation of this chapter, 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. Notwithstanding any violation of the nudity limitation under this chapter, any
violation of the provisions of this chapter shall constitute a separate offense for each and every
day during which such violation is conunitted or continued.
Sec. 9-496.1. Public nuisance.
In addition to the penalties set forth above, any medical cooperative which is operating in
violation of this chapter or any provision thereof is hereby declared to constitute apublic
nuisance and, as such, may be abated or enjoined fiom further operation. All costs to abate such
public nuisance, including attorneys' fees and court costs, shall be paid by the licensee of the
medical cooperative pursuant to section 13-17.
Sec. 9-497 Statewide Regulation
This ordinance, and the provisions herein, shall be read consistent with any statewide regulation
of medical marguana that is promulgated by the legislature or by voter approval in the future. In
the event Statewide Regulation is passed pursuant to the decriminalization or legalization of
rnarguana for recreational use, this ordinance shall govern the conduct of those business allowed
to distribute marguana under such provisions.
Section 4. Amendment and Repeal.
The provisions of the Costa Mesa Municipal Code added by, amended by, or contained in this
initiative measure may be amended to further its purposes by ordinance passed by a majority
vote of the Council and approved by the Mayor. The provisions of the Costa Mesa Municipal
Code added by, amended by, or contained in this initiative measure shall not be repealed, except
by an ordinance adopted either by petition or by the Council at its own instance and adopted by a
vote of the electors.
Section 5. 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.
Section 6. Effective Date.
The City Clerk shall certify as to the passage and adoption of this Ordinance. This Ordinance
shall take effect ten (10) days following the date on which the City Council of the City of Costa
Mesa declares that this Ordinance was adopted by a majority of the voters voting on the measure
at the municipal election on November.
Section 7. Ma_lority Approval; Effective Date. This ordinance shall be effective only if
approved by a majority of voters at the next special or general election and shall go into effect on
more than ninety days after the election.
Section S. Competing Measure.
Competing Measures. In the event that this measure and another measure or measures relating to
the taxation and regulation of medical marijuana shall appear on the same ballot, the provisions
of the other measures shall be deemed to be in conflict with this measure. In the event that this
measure shall receive a greater number of affirmative votes, the provisions of this measure shall
prevail in their entirety, and the provisions of the other relating to the taxation and regulation of
medical marijuana shall be null and void.
Section 9. Special or General election.
This initiative Measure shall be set for a special or general election at the earliest tune allowed
by law.
ATTACHMENT 3'
RESOLUTION NO. 16-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,
REQUESTING THE ORANGE COUNTY BOARD OF SUPERVISORS TO CONSOLIDATE A
GENERAL MUNICIPAL ELECTION TO BE HELD NOVEMBER 8, 2016, WITH THE
STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO
SECTION 10403 OF THE ELECTIONS CODE
WHEREAS, the City Council of the City of Costa Mesa called a General Municipal Election to be
held on November 8, 2016 for the purpose of submitting proposed ordinances to the voters of the City
of Costa Mesa for their consideration; and
WHEREAS, the City Council of the City of Costa Mesa is submitting to the voters of the City of
Costa Mesa questions relating to the adoption of proposed ordinances; and
WHEREAS, it is desirable that the general municipal election be consolidated with the Statewide
General election to be held on the same date and that within the city, the precincts, polling places, and
election officers of the two elections be the same, and that the Registrar of Voters of the County of
Orange canvass the returns of the General Municipal Election and that the election be held in all
respects as if there were only one election;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA,
DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code, the
Board of Supervisors of the County of Orange is hereby requested to consent and agree to the
consolidation of a General Municipal Election with the Statewide General Election on Tuesday,
November 8, 2016, for the purpose of submitting to the voters of the City of Costa Mesa two questions
relating to the adoption of proposed ordinances.
Resolution No. 16-31 Page 1
SECTION 2. That the following measures are to appear on the ballot as follows:
1
Measure : Allow Operation of up to Eight Medical
Marijuana (Cannabis) Businesses in the City of
Costa Mesa
Response
Vote
Shall the ordinance, to allow operation of up to eight medical
marijuana (cannabis) businesses with: six percent tax on
Yes
medical marijuana (estimated annual tax revenues $48,000
to $912,000); one percent tax on other products; exemption
No
from permits; regulations not subject to change by City
No
Council except for increasing businesses; precedence to
prior businesses; and locations limited to commercial and
industrial areas, be adopted?
2.
Measure _: Allow Operation of up to Four Licensed
Medical Marijuana Businesses in the City of
Costa Mesa
Response
Vote
Shall the ordinance, to allow operation of up to four medical
marijuana businesses with: six percent tax on medical
Yes
marijuana (estimated annual tax revenues $24,000 to
$456,000); required industry specific licenses; required
No
operator permits; regulations subject to change by City
Council including increasing businesses; precedence to
prior businesses; and locations limited to commercial and
industrial areas, be adopted?
SECTION 3. That the proposed complete text of the two ordinances submitted to the voters is
attached as Exhibit A and Exhibit B.
SECTION 4. That the vote requirement for both of the measures to pass is a majority (50% +1)
of the votes cast.
SECTION 5. That the County of Orange Registrar of Voters is authorized to canvass the returns
of the General Municipal Election. The election shall be held in all respects as if there were only one
election, and only one form of ballot shall be used. The election will be held and conducted in
accordance with the provisions of law regulating the statewide election.
SECTION 6. That the Board of Supervisors is requested to issue instructions to the county
election department to take any and all steps necessary to hold the consolidated election.
Resolution No. 16-31 Page 2
SECTION 7. That the City of Costa Mesa recognizes that additional costs will be incurred by the
County by reason of this consolidation and agrees to reimburse the County for any costs.
SECTION 8. That the City Clerk is directed to file a certified copy of this Resolution with the
Board of Supervisors and the county election department of the County of Orange.
SECTION 9. That the City Clerk shall certify to the passage and adoption of this resolution.
PASSED AND ADOPTED this 7t" day of June, 2016.
Stephen M. Mensinger
ATTEST:
APPROVED AS TO FORM:
Brenda Green, City Clerk Thomas Duarte, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
foregoing Resolution No. 16-31 was duly passed and adopted by the City Council of the City of Costa
Mesa at a regular meeting held on the 7t" day of July, 2016, by the following roll call vote, to wit:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 8t" day of July, 2016.
BRENDA GREEN, CITY CLERK
Attachments:
1. Exhibit A — Proposed Ordinance: Allow Operation of up to Eight Medical Marijuana (Cannabis)
Businesses in the City of Costa Mesa.
2. Exhibit B — Proposed Ordinance: Allow Operation of up to Four Licensed Medical Marijuana
Businesses in the City of Costa Mesa.
Resolution No. 16-31 Page 3
Exhibit A
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
Committee of proponents, who are residents of the City of Costa Mesa, sponsoring the petition:
Robert Taft, Jr. Kevin Gardner
TEXT OF THE PROPOSED MEASURE:
MEDICAL CANNABIS CONTROL ACT.
Section 1 — Title
This initiative shall be known and may be cited as the Medical Cannabis Control Act.
Section 2 — Findings and Declarations
Pursuant to, and consistent with the current California law concerning medical
cannabis, the City of Costa Mesa shall enact an ordinance creating Title 9, Chapter VI of the
Costa Mesa Municipal Code, and amend in its entirety Title 13, Chapter 1, Article 2, Section
13-6, and amending Row 31(a) of Title 13, Chapter 4, section 13-30, and amending Title 9,
Chapter 1, Article 5, Section 9-32 of the Costa Mesa Municipal Code, in order to authorize the
establishment of medical cannabis businesses, to restrict and limit such medical cannabis
businesses by imposing strict regulations on such businesses to protect the health, safety, and
welfare of the community;
WHEREAS, the Compassionate Use Act ("CUA"), adopted by California voters in
1996, and the Medical Marijuana Program Act ("MMPA"), enacted by the State Legislature in
2003, decriminalized the cultivation and use of marijuana by seriously ill individuals upon
a physician's recommendation and provided California's qualified patients and their primary
caregivers with specified immunities under state law, thereby helping to ensure that
qualified patients and their primary caregivers, who possess and use marijuana for medical
purposes, are not subject to criminal prosecution and/or sanction;
WHEREAS, the Costa Mesa Police Department ("CMPD") has reported that the
number of marijuana dispensaries and commercial growing operations proliferated though out
the City in the past without sufficient legal oversight, the City and its neighborhoods have
experienced negative secondary effects, including an increase in crime at certain locations
associated with unregulated medical cannabis businesses;
WHEREAS, there presently are no ordinances in the City of Costa Mesa specifically
regulating or monitoring the location, zoning standards, or other aspects of the locations and
facilities where medical cannabis will be dispensed to eligible persons under state law;
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MEDICAL CANNABIS CONTOL ACT
WHEREAS, medical cannabis businesses must operate with reasonable regulation, to
ensure that those seriously ill residents of the City benefit from the palliative effects of medical
cannabis have access they are provided under state law;
WHEREAS, by implementing a fair and reasonable registration process for medical
cannabis businesses, the City will be able to maintain order while avoiding undue burdens on its
already strained financial resources;
WHEREAS, the City has a substantial and clear interest in ensuring that medical
cannabis is distributed in an orderly manner, and in protecting the public health, safety and
welfare of its residents, its businesses, the neighborhoods in which medical cannabis businesses
operate, while ensuring compassionate access to seriously ill residents to medical cannabis in
accordance with the CUA and the MMPA;
WHEREAS, the regulations in this initiative do not interfere with a qualified patient's
right to use medical cannabis as authorized under California law, nor do they criminalize the
possession or cultivation of medical cannabis by specifically defined classifications of persons,
as authorized under California law;
WHEREAS, medical cannabis businesses shall comply with all provisions of the Costa
Mesa Municipal Code ("Code"), California law, and all other applicable local laws; nothing in
this initiative purports to permit activities that are otherwise illegal under state or Local law;
WHEREAS, this initiative is not intended to conflict with federal or state law, nor is it
intended to respond to or invite litigation over any unresolved legal questions posed by the
California Attorney General or by case law regarding the scope and application of state law; it is
intended that this initiative be interpreted to be compatible with federal and state enactments and
in furtherance of the public purposes that those enactments encompass;
WHEREAS, the People of the City of Costa Mesa find that nonprofit medical cannabis
businesses which operate in full compliance with the State Compassionate Use Act, the Medical
marijuana program act, and the Attorney General Guidelines demonstrate a willingness to
engage in lawful activity which benefits economic costs associated with the City of Costa Mesa's
local regulation and enforcement efforts;
WHEREAS, to that end, the People of Costa Mesa further find that those nonprofit
medial marijuana businesses, as set forth in the above paragraph, have been precluded from
operation in the City of Costa Mesa due to the inability to obtain a business license under the
City of Costa Mesa's Municipal Code. Those medical cannabis businesses who never operated in
in Costa Mesa without a business license yet have or have attempted to comply with the
Compassionate Use Act, the Medical marijuana program act, the Attorney General's Guidelines,
and the Costa Mesa Municipal Code by applying for a business license and when denied did not
violate the law and commence operation of a medical cannabis business illegally should be given
a preference for obtaining "Priority Registration" status as that term is herein defined, to operate
under Title 9, Chapter VI.
WHEREAS, the People of the City of Costa Mesa recognize that an ordinance proposed
by a voter initiative and adopted by a vote of the People cannot be repealed or amended, except
by a vote of the People pursuant to the California Constitution, Article 2, Section 10;
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MEDICAL CANNABIS CONTOL ACT
WHEREAS, the People of the City of Costa Mesa further find and declare that
this initiative is enacted pursuant to the powers reserved to the State of California, the City of
Costa Mesa, and its People under the Tenth Amendment of the United States Constitution,
Article 2 of the California Constitution, and the California Health and Safety Code Sections
11362.5 and 11362.7 et seg.
NOW, THEREFORE, the People of the City of Costa Mesa ordain as follows:
SECTION 3 — Amendment to the Costa Mesa Municipal Code to Add Title 9, Chapter VI.
The People of the City of Costa Mesa do hereby enact and ordain that Title 9 of the Costa
Mesa Municipal Code, entitled Licenses and Business Regulations, is hereby amended to add
Chapter VI to read as follows: (Any underlined language is new and shall be inserted into the
Chapter)
CHAPTER VI. — MEDICAL CANNABIS BUSINESSES
9-481 Authority and title
9-482 Release of liability and hold harmless
9-483 Purpose and intent
9-484 Physicians/patient confidentiality
9-485 Definitions
9-486 Medical cannabis businesses prohibited
9-487 Limited immunity
9-487.1 Operational requirements
9-488 Cultivation of medical cannabis
9-489 Transportation of medical cannabis
9-490 Violation and enforcement
9-491 Majority approval; effective date
9-492 Competing measures.
9-493 Amendment and repeal.
9-494 Severability.
9-495 Statewide regulation.
9-496 Special or general election.
SEC. 9-481 Authoritv and title.
Pursuant to the authority granted by the California Constitution Article 2 and California
Health and Safety Code Sections 11362 and 11362.7 et sen the People of the City of Costa
Mesa do enact this Chapter, which shall be known and may be cited as the "Medical Cannabis
Control Act."
_7_
MEDICAL CANNABIS CONTOL ACT
SEC. 9-482 — Release of liability and hold harmless.
To the fullest extent permitted by law, the City of Costa Mesa shall assume no liability
whatsoever, and expressly does not waive sovereign immunity, with respect to the medical
cannabis business program established herein, or for the activities of any medical cannabis
business.
Each medical cannabis business recognized by the city shall
a. Release the city, its agents officers elected officials and employees from any
iniuries, damages, or liabilities of any kind that result from any arrest or
prosecution of the medical cannabis provider association or its participants for
a violation of state or federal law.
b. Indemnify and hold harmless the City, its agents officers elected officers
and employees for any claims, damages, or injuries brought by adjacent or
nearby property owners or other third parties due to the operations at the
medical cannabis business and or premises; and
c. Indemnify and hold harmless the City its agents officers elected officials
and employees for any claims, dama es, or injuries brought by any of its
participants for problems injuries damages or liabilities of any kind that may
arise_ out of the distribution, cultivation and/or use of medical cannabis
provided at the medical cannabis business and/or premises.
SEC. 9-483 - Purpose and intent.
It is the purpose and intent of this Article to limit the maximum number and
concentration of medical cannabis businesses in the City, to provide needed tax revenue to the
City, and to regulate the operation of medical cannabis businesses in order to ensure the health
safety and welfare of the residents of the City of Costa Mesa. The regulations in this Chapter, in
compliance with the Compassionate Use Act, the Medical marijuana program act and the
California Health and Safety Code do not interfere with a qualified patient's right to use medical
cannabis as authorized under California law, nor do they criminalize the possession or cultivation
of medical cannabis by specifically defined classifications of persons, as authorized under
California law.
Medical cannabis businesses shall comply with all provisions of the Costa Mesa
Municipal Code ("Code") and California laws Nothing in this Article purports to permit
activities that are otherwise illegal under federal, state or local law. This Article is not intended
to conflict with federal or state law, nor is this Article intended to respond to or invite litigation
over any unresolved legal questions posed by the California Attorney General or by case law
regarding the scope and application of state law. It is intended that this Article be interpreted to
be compatible with federal and state enactments and in furtherance of the public purposes that
those enactments encompass.
_g_
MEDICAL CANNABIS CONTOL ACT
SEC. 9-484 — Phvsician/Patient confidentiali
Requirements set forth pursuant to this Chapter shall preserve to the maximum extent
possible all legal protections and privileges consistent with reasonably verifying the
qualifications and status of qualified patients and primary caregivers Disclosure of anyap tient
information to assert facts in support of qualified status shall not be deemed a waiver of
confidentiality of that information.
SEC. 9-485. Definitions.
A. The following phrases and words, when used in this section shall be construed as defined
below. Words and phrases not defined here shall be construed as defined in Costa Mesa
municipal code or state law.
"Building" means any structure having a roof supported by columns or walls for the housing
shelter or enclosure of persons, animals, chattels, or property of any kind
"Cannabis" or "marijuana" shall be construed as defined in California Health and Safety Code
Section 11018 and further shall specifically include any product that contains marijuana or a
derivative of marijuana and all parts of the plant ❑ cannabis whether growing or not; the seeds
thereof, the resin extracted from any [I part of the plant and every compound manufacture salt
derivative, mixture, or❑preparation of the plant, its seeds or resin. It includes marijuana infused
in❑foodstuff. It does not include the manure stalks of the plant fiber produced from❑the stalks
oil or cake made from the seeds of the plant, any other compound ❑manuufactuure salt derivative
mixture, or preparation of the mature stalks (except []the resin extracted therefrom) fiber, oil or
cake, or the sterilized seeds of the plant❑are incapable of germination ❑
"Collectives" and "cooperatives" when referring to medical cannabis[] organizations both mean
associations of five or more qualified patients, persons ❑with identification cards or primary
caregivers of qualified patients and persons[]with identification cards who associate as an
incorporated or unincorporated 0 association,to collectively or cooperatively cultivate and
distribute medical[] cannabis for use exclusively by their registered members in strict accordance
with❑Califounia Health and Safety Code sections 11362.5 and 11362.7 et sec.
"Cultivation" means the planting, growing harvesting, drying processing or storage of one or
more marijuana plants or any part thereof in anv location indoor or outdoor, including from
within a fully enclosed an secure building.
"Edible products" means marijuana cultivated by medical cannabis businesses and participants
thereof, that is made available in an edible form and prepared in a certified kitchen meeting all
the applicable health requirements to be used and ingested solely_by qualified patient participants
as part of their medical regime, in strict accordance with state law.
"Felony Conviction" means any conviction whether by guilty plea judicial ruling or jury
verdict, of any felonv offense. A conviction of a felonv offense that has been dismissed
withdrawn, expunged, or set aside, whether pursuant to California Penal Code section 1203 4
_9_
MEDICAL CANNABIS CONTOL ACT
California Penal Code section 1000 California Penal Code section 1385 the interest of justice
or any other judicial ruling or agreement of the prosecution shall not be deemed a felony
conviction.
"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 image data along with personal
descriptor information to computers at the DOJ for completion of a criminal record check; or
such other comparable inkless electronic fingerprinting.
inting_
"Location" means any parcel of land whether vacant or occupied by a building group of
buildings, or accessory buildings, and includes the buildings structures yards ol2en spaces to
width, and lot area.
"Manager" means any person with responsibility for the establishment organization
registration, supervision or oversight of a medical cannabis business including but not limited to
any person who perfornis the functions of president vice president board member, director,
owner, operating officer, financial officer, secretary, or treasurer of the medical cannabis
business.
"Medical cannabis" and "medical marijuana" means cannabis that isOgrown used and
distributed pursuant to the provisions of California Health andOSafety Code sections 11362.5
and 11362.7-11362.83, including all cannabis []products, infiisions and concentrates containing
the active ingredients of the[] cannabis plant.
"Medical cannabis businesses" means the following: an unincorporated or incorporated entity or
association of qualified patients and/or primary caregivers and/or persons with identification
cards, who provide money and in-kind contributions reimbursements and reasonable
compensation towards the aforementioned entity's actual expenses for activities including but
not limited to; planting cultivation harvesting transporting manufacturing, compounding
convertins processing preparing storing_ packaging providing and/or retail sales of medical
cannabis. A medical cannabis business may provide medical cannabis products services and
assistance to qualified patients, persons with a medical cannabis identification card (as set forth
in the MMPA) or the primary caregiver of such persons Medical cannabis businesses may
assist with the acquisition of skills necessary to cultivate or provide marijuana for medical
purposes in compliance with State Law. A medical cannabis business includes any facility,
building, structure or location, whether permanent or temporary, where marijuana is made
available, sold, given away, distributed or otherwise provided in accordance with Health and
Safety Code section 11362.5 el sea, A medical cannabis business includes medical cannabis
collectives, cooperatives, dispensaries cultivations and marijuana delivery services Medical
Cannabis businesses include "medical marijuana businesses."
(1) "Medical cannabis business" shall not include nor be interpreted to include any of
the following:
a. Any location which is a legal dwelling zoned exclusively for residential use
and not permitted for any commercial activity where three (3) or less people
who reside at a property cultivate marijuana.
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MEDICAL CANNABIS CONTOL ACT
b. The location of anv clinic licensed pursuant to Chapter 1 (commencing
with Section 1200), a health care facility licensed pursuant to Chapter 2
(commencing with Section 1250) a residential care facility for persons with
chronic life-threatening illness licensed pursuant to Chapter 3.01
(commencing with Section 1568.01) a residential care facility for the elderly
licensed pursuant to Chapter 3.2 (commencing with Section 1569) a hospice
or a home health agency licensed pursuant to Chapter 8 (commencing with
Section 1725), any facility specified in Division 2 of the California Health and
Safety Code where: (i) a qualified patient or person with an identification card
receives medical care or supportive services or both from the clinic facility,
hospice, or home health agency and (ii) the owner or operator, or one of not
more than three employees designated by the owner or operator of the clinic
facility, hospice, or home health agency has been designated as a primary
caregiver pursuant to California Health and Safety Code Section 11362 7(d)
by that qualified patient or person with an identification card
"Medical cannabis identification card," "Medical marijuana identification card," and
"identification card" mean a❑document issued by the State Department of Health Services
pursuant to❑Califomia Health and Safety Code sections 11362.7 et sea that identifies a
person Li authorized to engage in the medical use of cannabis and the person's
designated[] primary caregiver, if any, or identifies a person as a primary caregiver for
a[] medical cannabis patient.
"Premises" means the space in any buildings of a medical cannabis business together with the
spaces within any structures, yards, open spaces lot width and lot area at a location that is
occupied or used in the operation of the medical cannabis business
"Reasonable compensation" means compensation commensurate with reasonable wages and
benefits paid to employees of IRS -qualified non-profit organizations who have similar job
descriptions and duties, required level of education and experience prior individual earnings
history. and number of hours worked.
"Structure" means anvthing constructed or erected which is supported directly or indirectly on
the ground, but not including any vehicle.
"Vehicle" means a conveyance or device by which any person or property may be propelled,
moved, or drawn upon a street, sidewalk or waterway, including but not limited to a device
moved exclusively by human power.
B. The following words or phrases when used in this section shall be construed as defined
in California Health and Safety Code Sections 1746 1136 2.5, and 11362.7.
"Hospice'% "Identification card"; "Person with an identification card•" "Primary caregiver'% and
"Qualified patient."
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MGDICAL CANNABIS CONTOL ACT
SEC. 9-486. Medical cannabis businesses prohibited.
A. It shall be unlawful to own, establish operate use or permit the establishment or
operation of a medical cannabis business or to participate as an employee contractor,
agent, volunteer, or in any manner or capacity other than as provided in this Chapter.
B. The general prohibition contained in this section shall include renting leasing or
otherwise permitting a medical cannabis business to occupy or use a location vehicle or
other mode of transportation.
SEC. 9-487. Limited immunity.
A medical cannabis business shall be immune to the prohibition set out in Section 9-486
and the remedies set forth in Costa Mesa Municipal Code including criminal
prosecution, so long as that medical cannabis business obtains a Business License for the
operation of a medical cannabis business from the City, through the Treasury Division
Management Department and/or City Tax Collector, as well as complies with all
operational requirements provided in this section
A. Business license.
1. The City Tax Collector and/or The City Treasury Division Management
Department shall issue a business license for a medical cannabis business that
meets priority registration or non-priority registration requirements detailed
below in this section.
a. Priority Registration.
Beginning on the date that is thirty (30) days after the effective
date of this ordinance, and lasting for ten 0 0) business days a
medical cannabis business may submit a priority registration
application and obtain a business license for the purpose of
operating a medical cannabis business from the City of Costa
Mesa if, on or before Mav 30 2014 such applicant:
(a) Has never operated a medical cannabis or medical
mariivana business in the city of Costa Mesa has never
been convicted of operating a medical cannabis
business, or never been civilly adjudicated of operating
a medical cannabis business or medical marijuana
business without a business license in the City of Costa
Mesa;
a. The lack of any court record of a citation
conviction or civil adjudication by the city shall
be sufficient proof to satisfy that applicant has
not operated a medical cannabis business in the
Citv of Costa Mesa
(b) Has been issued a business license or has applied for a
business license from the City of Costa Mesa for a
I2_
MEDICAL CANNABIS CONTOL ACT
medical cannabis business or medical mariivana
business;
a. Proof of application or attempt to apply for a
Costa Mesa business license for the purpose of a
medical cannabis business or medical marijuana
business shall be satisfied by any competent
verifiable documentation, including but not
limited to, a date stamped business license
application from the City, a filed application a
copy of a denial letter for a medical cannabis
business from City of Costa Mesa or a dated
copy of an application for a medical cannabis
business license alone with some proof that a
mailing was sent to the City of Costa Mesa
Treasury Management Division P.O Box 1200
Costa Mesa, CA 92628-1200 within seven (7)
days of the signing of the application or any
documentation stamped "Received" by the city
including but not limited to a printout of City_
of Costa Mesa Land Use Matrix Table 13-30 or
a copy of a received stamped copy of a business
card of a senior planner for the City of Costa
Mesa.
(c) Has filed for Incorporation filed Chapters of
Association for a limited liability company, or articles
of organization with the Secretary of State of California
for the purl2ose of operating a non-profit medical
cannabis business or medical marijuana business:
a. Proof of incorporation, articles of association or
limited company status shall be satisfied by a
true and correct copy of the articles of
incomoration filed with the Secretary of State
Chapters of Association or any other competent
verifiable documentation;
(d) Possesses or has applied for a Seller's Permit from the
State Board of Equalization in the name of the business
(e) Possesses or has applied for a License to Sell Nursery
Stock for the City of Costa Mesa which was applied for
or issued by the Department of Food and Agriculture;
(f) Has applied for a Live Scan background check;
(g) Possesses a physician's medical cannabis or medical
marijuana recommendation pursuant to California
Health and Safety Code section 11362 et sec
(h) Possess or has applied for a medical marijuana
identification card pursuant to Health and Safety Code
Section 11362.7 et sec.;
(i) Possesses or has applied for a general liability insurance
policy (bodily injury, property damage and medical
—13—
MEDICAL CANNABIS CONTOL ACT
cannabis liability), which specifically includes liability
for medical cannabis and/or medical marijuana
a. Proof of application for a general liability
insurance policy, which specifically includes
liability for medical cannabis and/or medical
marijuana may be shown by a quote from an
insurance company or any other verifiable
documentation.
(j) The applicant possesses a notarized signed and dated
authorization to submit to fingerprinting and
photographing and authorizing the City in writing to
obtain information from criminal iustice agencies
financial institutions, Federal State and local
government agencies and other persons and entities
The written authorization shall include consent to
release the information to the City for use in connection
with the business license.
(k) The applicant possesses a notarized signed and dated
statement indicating to the City that the applicant will
hold harmless, indemnify, and defend the City against
all claims and litigation arising from the issuance of a
licenses, including any claims and litigation arising
from the establishment, operation or ownership of the
medical cannabis establishment.
b. Non -Priority Registration:
Beginning on the date that is thirty (30) days after the effective
date of this ordinance plus ten 0 0) business days any medical
cannabis business may submit a non-priorityegistration
application to the Treasury Division Management Department
and/or City Tax Collector for a business license provided the
medical cannabis business meets the following criteria:
(a) Has never operated a medical cannabis or medical
mariivana business in the city of Costa Mesa has never
been convicted of operating a medical cannabis
business, or never been civilly adjudicated of operating
a medical cannabis business or medical marijuana
business without a business license in the City of Costa
Mesa;
a. The lack of any court record of a citation
conviction or civil adjudication by the city shall
be sufficient proof to satisfy that applicant has
not operated a medical cannabis business in the
City of Costa Mesa.
(b) Has been issued a business license or has applied for a
business license from the City of Costa Mesa for a
-- 14 -
MEDICAL
a -
MEDICAL CANNABIS CONTOI- ACT
medical cannabis business or medical mariivana
business;
a. Proof of application or attempt to apply for a
Costa Mesa business license for the purpose of a
medical cannabis business or medical mariivana
business shall be satisfied by any competent
verifiable documentation, including but not
limited to. a date stamped business license
application from the City a filed application a
copy of a denial letter for a medical cannabis
business from Citv of Costa Mesa or a dated
copy of an application for a medical cannabis
business license along with some proof that a
mailing was sent to the City of Costa Mesa
Treasury Management Division P.O. Box 1200
Costa Mesa, CA 92628-1200 within seven (7)
days of the signing of the application, or any
documentation stamped "Received" by the city
including, but not limited to, a printout of City_
of Costa Mesa Land Use Matrix Table 13-30 or
a copy of a received stamped copy of a business
card of a senior planner for the City of Costa
Mesa.
(c) Has filed for Incorporation. filed Chapters of
Association for a limited liability company, or articles
of organization with the Secretary of State of California
for the purpose of operating a non-profit medical
cannabis business or medical marijuana business;
a. Proof of incoMoration, articles of association or
limited company status shall be satisfied by a
true and correct copy of the articles of
incorporation filed with the Secretary of State
Chapters of Association or any other competent
verifiable documentation:
(d) Possesses or has applied for a Seller's Permit from the
State Board of Equalization in the name of the business
(e) Possesses or has applied for a License to Sell Nursery
Stock for the City of Costa Mesa which was applied for
or issued by the Department of Food and Agriculture:
(f) Has applied for a Live Scan background check;
(g) Possesses a physician's medical cannabis or medical
marijuana recommendation pursuant to California
Health and Safety Code section 11362 et sec
(h) Possess or has applied for a medical marijuana
identification card pursuant to Health and Safety Code
Section 11362.7 et sec.:
(i) Possesses or has applied for a general liability insurance
policy (bodily injury, property damage, and medical
Ig_
MEDICAL CANNABIS CONCOL ACT
cannabis liability), which specifically includes liability
for medical cannabis and/or medical marijuana
a. Proof of application for a general liability
insurance policy, which specifically includes
liability for medical cannabis and/or medical
marijuana may be shown by a quote from an
insurance company or any other verifiable
documentation.
(j) The applicant possesses a notarized, signed and dated
authorization to submit to fingerprinting and
photographing and authorizing the City in writing to
obtain information from criminal justice agencies,
financial institutions, Federal, State and local
government agencies, and other persons and entities
The written authorization shall include consent to
release the information to the City for use in connection
with the business license.
(k) The applicant possesses a notarized, signed and dated
statement indicating to the City that the applicant will
hold harmless, indemnify, and defend the City against
all claims and litigation arising from the issuance of a
licenses, including any claims and litigation arising
from the establishment, operation or ownershipof f the
medical cannabis establishment.
c. The Tax Collector or City shall issue _a business license or a reiection
with a written explanation, to an applicant within 45 des of the
applicant's written request for a business license The failure of the
Tax Collector to issue a business license within the 45 day period shall
be deemed an acceptance of the application for the business license
and the medical cannabis business shall be permitted tooperate.
d. The business license shall be valid for two (2) nears, irrespective of
whether or not the business is active operating duringthat hat period An
application for renewal of a medical cannabis business license must be
filed no later than thirty (30) calendar days prior to the expiration of
the registration, but no earlier than sixty (60) calendar days prior to the
expiration of the registration. A registration shall be renewed for an
additional period of two (2) years by submitting an application to the
Tax Collector or City.
e. The fee required for application and registration for a medical cannabis
business license shall not exceed five hundred dollars ($500.00)
2. No permit required: The People of the City of Costa Mesa hereby declare
that the operation of a medical cannabis dispensary in compliance with this
Chapter is not detrimental to the public health safety, welfare or moral
standards of the City. As such, the City shall not require the medical cannabis
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MEDICAL CANNABIS CONTOL ACT
business to obtain any pecial use permit conditional use permit or anv other
permit pursuant to any section of this code specifically, but not limited to
Sections 9-33 and 9-114, as a condition president or condition subsequent to
obtaining a business license and/or business tax registration certificate.
Additionally no special site plan variance or any other permit or certificate
shall be required for a medical cannabis business, other than those specified in
this Chapter.
Business tax registration certificate — Transfer: Notwithstanding Section
9-44, Medical cannabis Business licenses shall be transferable only so long as
the medical cannabis business taxed is transferred whether by sale or
otherwise, to another person or entity under such circumstances that the real
or ultimate ownership of the business after the transfer is substantially similar
to the real or ultimate ownership existing before the transfer and the transferee
meets all the non-priority registration requirements listed in Subsections (a)
through (f) of Section 9-487(A.)(1.)(b.,)(i )
4. Maximum number of businesses: City shall issue no more than eight (8)
business licenses for the operation of medical cannabis businesses subject to
Subsections 4(a) below. If the number of certified medical cannabis
businesses falls below nine (9), then the City shall issue additional business
licenses pursuant to the terms of this Chapter.
a. City council shall have the discretion to increase but not decrease the
number of business licenses issued by the Tax Collector City Treasury
Division Management Department, or City to medical cannabis
businesses pursuant to the terms of this Chapter.
5. Any such exercise of discretion under Section 4(a) above increasing the
number of new business licenses above the current maximum number of nine
(9) shall comply with the minimum non-priority registration standards
enumerated in in Subsections (a) through (f) of Section 9-487(A.)(1 )(b)(i )
SEC. 9-487.1. Operational requirements.
A medical cannabis business shall be immune to the prohibition set out in Section 9-486
and the remedies set forth in Costa Mesa Municipal Code so long as that medical
cannabis business obtains a business license and complies with the following operational
requirements:
Safe radius restrictions: The medical cannabis business is not located within:
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MEDICAL CANNABIS CONTOL ACT
A 600 -foot radius of a public school as defined under Health and Safety Code
§11362.768 (h);
ii. The distances specified in this paragraph shall be the horizontal distance
measured in a straight line from the property line of the school to the Property line
of the medical cannabis business without regard to intervening structures•
iii. Medical cannabis businesses shall be permitted in the following use districts or
zones in the City: AP, CL, C2, C1 -S, MG MP PDC PDI C1 & TC Medical
cannabis businesses are prohibited in all other use districts or zones
Non -concentration of businesses requirement: The medical cannabis businesses shall
be disbursed in accordance with the following:
A marijuana business shall not be located within a 1000 -foot radius of any other
licensed medical cannabis business.
The distances specified in thisap ragraph shall be the horizontal distance
measured in a straight line from the property line of the first licensed medical
cannabis business to the closest property line of the second medical cannabis
business without regard to intervening structures:
3. Delivery restrictions: The medical cannabis business shall not deliver marijuana to its
members within the City of Costa Mesa unless the medical cannabis business maintains
insurance for its managers, volunteers or employees who deliver the marijuana and the
medical cannabis business maintains a location within the City of Costa Mesa which
possesses a business license under this Chapter.
4. License requirements: The medical cannabis business shall maintain a valid state Board
of Equalization state Seller's permit in the name of the business
Insurance Requirement: The medical cannabis business shall possesses a commercial
general liability insurance policy (bodily injury, propertdamage and medical cannabis
liability), which specifically includes liability for medical cannabis
6. Restriction of minors on premises: The medical cannabis business shall not allow
minors under the age of 18 Years to enter its premises during any hours of operation
Restriction of minors as employees: It shall be unlawful for anv medical cannabis
business to employ any person who is not at least 18 years of age
Restriction on hours of operation: Hours of operation are limited to the hours between 9
a.m. and 10 p.m.. seven days a week.
Visible marijuana restrictions: Any marijuana within a medical cannabis business shall
not be visible with the naked eve from the exterior of the business's premises
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MEDICAL CANNABIS CONTOL ACT
10. Alcohol restrictions: The medical cannabis business shall prohibit the sale, dispensing
or consumption of alcoholic beverages at its location, in the parking area of the location
or within fifty (50) feet of the business.
11. Premises use restrictions: The medical cannabis business shall not allow any nersons to
inhale, smoke, eat, ingest, or otherwise consume marijuana at the location in the Parking
areas of the location, within fifty (50) feet of the premises, or in those areas restricted
under the provisions of California Health and Safety Code section 11362.79 This
prohibition shall not apply to a qualified patient's use of marijuana for his or her own
medical needs if the qualified patient's permanent legal residence is at the medical
licensed residential medical and elder care facilities.
12. Legal notice requirements: A sign shall be posted inside the medical cannabis
businesses stating substantially as follows: "The diversion of cannabis for non-medical
purposes is a violation of State Law. Loitering at the location of a medical cannabis
dispensing or business for an illegal purpose is prohibited by California Penal Code
section 647(h). No medical cannabis shall be smoked, ingested or otherwise consumed on
the premises of the business or within fifty (50) feet of a medical cannabis business"
Such sign shall be printed in 14 -point font or larger upon 8 % by 11 patter and posted at
some conspicuous part of such site.
13. Restrictions relating to cultivation, manufacturing, and processing: Medical
cannabis businesses shall exchange, sell, transfer, and distribute only marijuana or
cannabis cultivated, manufactured, or processed in the State of California and that has not
left the State before arriving at the business and that has been cultivated only by,
provided only to its verified members in a closed-circuit of production and consumption.
14. Medicine inventory restrictions: The medical cannabis business may possess and
cultivate a reasonable quantity of dried marijuana and marijuana plants to meet the
personal medical needs of their members.
15. Employee background requirements: The medical cannabis business shall utilize the
Live Scan background check system as set forth in this Article prior to employing any
manager, volunteer or employee. The medical cannabis businesses' managers must be
registered members of the medical cannabis business. Verification of all Live Scan
applications received by a medical cannabis business shall be processed and received by
the Costa Mesa Police Department in accordance with California Department of Justice
guidelines.
16. Employee background restrictions: Prior to being offered a position of management or
employment at a medical cannabis business an applicant for a position of manager
volunteer, or employee of the medical cannabis business who dispenses medical cannabis
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MEDICAL CANNABIS CONTOL ACT
must submit and successfully pass an annual Live Scan background check by December
31 of each year in order to be employed at the medical cannabis business A failed Live
Scan is any Live Scan that shows a felony conviction having occurred within the past 7
years and/or shows that the manager, volunteer or employee is currently on parole or
probation for the sale or distribution of a controlled substance
For the purposes of this section, a conviction of a felony that has been dismissed
withdrawn, expunged, or set aside, whether pursuant to California Penal Code
section 1203.4, California Penal Code section 1000, California Penal Code
section 1385 or any other judicial ruling or prosecution agreement shall not be
deemed a felony conviction and, consequently, shall not result in a failed Live
Scan.
17. Patient confidentiality: In order to protect confidentiality, the medical cannabis business
may maintain records of all qualified patients with a valid identification card and primary
caregivers with a valid identification card using only the identification card number
issued by the State or County pursuant to California Health and Safety Code section
113 62.7, et sen.
18. Manufacture of concentrated cannabis restrictions: The medical cannabis business
shall not participate in or otherwise engage in the manufacture of concentrated cannabis
in violation of California Health and Safety Code section 11379.6
19. Security requirements: The medical cannabis business shall provide the following
security measures:
the medical cannabis business shall maintain an alarm system reasonably
designed to ensure the safety of persons and to protect the premises from theft•
ii. the business shall provide a security ug and patrol for the premises during all hours
of operation;
iii. the security guard patrol shall be a duly -licensed and uniformed security guard
ap trol.
20. Packaging requirements: All medical cannabis businesses shall distribute all non -live
marijuana in sealed packaging or in "Child Proof' containers equipped with either a
"Push or Turn", "Reversible" top vial, or "Pop Top" or "Squeeze Top" locking
mechanism.
21. Warning labels requirements: All medical cannabis packaging shall contain a warning
that the product contains marijuana, and it is to be consumed only with a physician's
recommendation.
_2p_
MEDICAL CANNABIS CONTOL ACT
22. mage restrictions: Outdoor signage on medical cannabis business premises shall
comply with all City signage restrictions and shall not contain pictorial representations of
the marijuana plant or pictorial representations of marijuana use.
23. Edible restrictions: Medical cannabis businesses that prepare. dispense or sell edible
medical cannabis products, or food containing any form of medical cannabis must
comply with and are subject to the provisions of all relevant state and local laws
regarding the preparation, distribution, and sale of food Failure to obtain and comply
with all necessary permits related to the preparation, distribution, and sale of food will be
an express violation of this Chapter.
24. Odor restrictions: A business shall have an air treatment filtration or ventilation system
that reasonably prevents odors generated from the storage of marijuana on the business
propeertv.
25. Taxation of medical cannabis businesses: The rate of sales tax and use tax imposed by
this Chapter shall be:
i. Every person engaged in operating or otherwise conducting a medical cannabis
busines not otherwise specifically taxed by other business tax provisions of this
Chapter, shall pay a business tax of six (6) percent or $60.00 for each $1000.00 of
gross receipt or fractional parts thereof on all proceeds from the distribution sale
transfer of medical cannabis by the operation of a medical cannabis business
ii. One (1) percent or $10.00 for each $1,000 on the sale of all other tangible
personal property at retail.
iii. For the purposes of this Section, the above taxes apply onlyProspectively. The
city shall make no claim, current, retroactive, or prospective for payment by any
medial marijuana business or any other City tax except for the City portion of any
Sales Tax collected by the California State Board of Equalization
iv. For the purpose of this section, a "medical cannabis business" means any activity
regulated or permitted by Chapter VI of this Code and California Health and
Safety Code sections 113 62.5, et seq., that involves transporting dis ep nsin&
delivering, providing or manufacturing, compounding converting processing
preparing, storing, packaging, or testing harvesting of any part of the marijuana
plant for medical purposes.
Sec. 9-488. Cultivation of medical cannabis: Medical cannabis businesses may cultivate a
reasonable amount of marijuana consistent with their member patient's needs. All medical
cannabis cultivation subject to this Chapter shall be concealed from public view at all stages of
growth, and there shall be no exterior evidence of cultivation occurring at the premises from a
public right of way or from an adjacent parcel. Medical cannabis cultivation subject to this
Chapter shall not create unreasonably offensive odors, create excessive dust, noise, heat smoke
or other impacts that are unreasonably disturbing to persons of non -nal sensitivitv present on
adjacent propert
Sec. 9-489. Transportation of medical cannabis: Activities entailing the transportation of
medical cannabis in accordance with the Compassionate Use Act, the Medical marijuana
program act, The Attornev General Guidelines, and this Chapter, shall be lawful only when
—21—
MEDICAL CANNABIS CONTOL ACT
conducted by participant of a recognized medical cannabis business, or collective, or
cultivation site for deliver toaparticipant member of the same medical cannabis collective or
medial marijuana business of the same medical cannabis collective or association when the
quantity transported and the method, timing, and distance of the transportation are reasonably
related to the medical needs of the qualified patient or medical cannabis businesses receiving the
medication.
Sec. 9-490. Violation and enforcement: Each violation of this Chapter shall constitute a
separate violation and shall be subject to all remedies and enforcement measures authorized by
Costa Mesa Municipal Code. Additionally, as a nuisance per se any violation of this Chapter
shall be subject to legally authorized remedies, including procedures for injunctive relief,
disgorgement and payment to the City of any and all monies unlawfully obtained, costs of
abatement, costs of investigation, attomey's fees, and any other relief or remedy available at law
or equity. The City may also pursue any and all remedies and actions available and applicable
under local and state laws for any violations committed by the medical cannabis business and
persons related or associated with such medical cannabis business.
Sec. 9-491. Majority approval; Effective date: This Measure shall be effective only if
approved by a majority of voters and shall go into effect immediately upon passage.
Sec. 9-492. Competing measures: In the event that this Measure and another Measure or
Measures relating to the regulation of medical cannabis in the City of Costa Mesa shall appear on
the same ballot, the provisions of the other Measures shall be deemed to be in conflict with this
Measure. In the event that this Measure shall receive a greater number of affirmative votes, the
provisions of this Measure shall prevail in their entirety, and the provisions of the other relating
to the regulation of medical cannabis in the City of Costa Mesa shall be null and void.
Sec. 9-493. Amendment and repeal: The provisions of the Costa Mesa Municipal Code
added by. amended by, or contained in this initiative Measure may be amended only as provided
in each section. The provisions of the Costa Mesa Municipal Code added by, amended by. or
contained in this initiative measure shall not be repealed, except by an ordinance adopted either
by petition or by the Council at its own instance and adopted by a majority vote of the electors.
Sec 9-494. Severability: If any portion of this initiative Measure is for any reason held to be
unconstitutional, invalid or unenforceable by a court of competent jurisdiction, that invalidity
shall not affect the remaining portions of this initiative Measure that can be implemented without
the invalid provision, and, to this end, the provisions of this initiative Measure are severable.
Sec. 9-495. Statewide regulation: This initiative Measure, and the provisions herein, shall
be read consistent with any statewide regulation of medical cannabis or recreational marijuana
that is promulgated by the legislature or by voter approval in the firture.
Sec. 9-496. Special or General election: This initiative Measure shall be set for a special or
regular election at the earliest time allowed by law.
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MEDICAL CANNABIS CONTOL ACT
SECTION 4 — AMENDMENTS TO COSTA MESA MUNICIPAL CODE TITLE 9,
CHAPTER 1, ARTICLE 5, SECTION 9-32.
The People of the City of Costa Mesa do hereby enact and ordain that Title 9, Chapter 1,
Article 5, Section 9-32, entitled Unlawful Business Not Authorized, is hereby amended to read
as follows: (All underlined language is new and to be inserted. All language struck through is to
be deleted.)
Sec. 9-32 Unlawful business not authorized.
No business license or permit issued under the provisions of this title, nor the payment of any tax
required under the provisions of this title shall be construed as authorizing the conduct or
continuance of any illegal business businesses deemed illegal by state law or a legal business in
an illegal manner.
SECTION 5 - AMENDMENTS TO COSTA MESA MUNICIPAL CODE TITLE 13,
CHAPTER 1, ARTICLE 2, SECTION 13-6.
The People of the City of Costa Mesa do hereby enact and ordain that Title 13, Chapter 1, Article
2, Section 13-6, entitled , is hereby amended to read as follows: (All underlined language is new
and to be inserted. All language struck through is to be deleted)
Section 13-6. Definitions
by .. other means made available t....nd/er .1:..t«; l..,to.7 l.. t tY. !3\ F 1,
b' b
strict aeeerdariee with State Health and Safety Cede Sections 11362.5 et seEl. and 11362.7 et
seq,whieh shall include, bu4 net be limited to, any faeilit�y or leeatien b. b .
sale,sale, dispensation, or distribution of maf�uana for medical purpeses that does net have an
aetive role in the cultivation of the mafijuana product tha4 it sells, dispenses, or distribiites, 0
when its cultivation of the marijuana produet is eff site from the faeility or leeation for retail
of distribution.
dispensation,
Medical Cannabis Business. An unincorporated or incorporated entity or association of qualified
patients and/or primary caregivers and/or persons with identification cards, who provide money
and in-kind contributions, reimbursements, and reasonable compensation towards the
aforementioned entity's actual expenses for activities including but not limited to; planting
cultivation, harvesting, transporting, manufacturing, compounding. converting, processing
preparing, storing, packaging providing and/or retail sales of medical cannabis A medical
cannabis business may provide medical cannabis, products, services and assistance to qualified
patients, persons with a medical marijuana identification card (as set forth in the MMPA) or the
primary caregiver of such persons. Medical cannabis businesses may assist with the acquisition
of skills necessary to cultivate or provide marijuana for medical piuKposes in compliance with
State Law. A medical cannabis business includes any facility, building, structure or location.
whether permanent, or temporary. where marijuana is made available, sold, given away,
-23
MEDICAL CANNABIS CONTOL ACT
distributed, or otherwise provided in accordance with Health and Safety Code section 11362.5 et
seg. A medical cannabis business includes medical cannabis "cooperatives" and marijuana
delivery services.
(1) "Medical cannabis business" shall not include, nor be interpreted to include, any o
the following:
a. Any location which is a legal dwelling zoned exclusively for residential use
and not permitted for any commercial activity where three (3) or less people
who reside at a property cultivate marijuana.
b. The location of any clinic licensed pursuant to Chapter 1 (commencing
with Section 1200), a health care facility licensed pursuant to Chapter 2
(commencing with Section 1250), a residential care facility for persons with
chronic life-threatening illness licensed pursuant to Chapter 3.01
(commencing with Section 1568.01), a residential care facility for the elderly
licensed pursuant to Chapter 3.2 (commencing with Section 1569), a hospice
or a home health agency licensed pursuant to Chapter 8 (commencing with
Section 1725), any facility specified in Division 2 of the California Health and
Safety Code where: (i) a qualified patient or person with an identification card
receives medical care or supportive services, or both, from the clinic, facility,
hospice, or home health agency; and (ii) the owner or operator, or one of not
more than three employees designated by the owner or operator, of the clinic,
facility, hospice, or home health agency has been designated as a primary
care ig ver pursuant to California Health and Safety Code Section 11362.7(d)
b t�qualified patient or person with an identification card.
SECTION 6 - AMENDMENTS TO COSTA MESA MUNICIPAL CODE TITLE 13,
CHAPTER 4, SECTION 13-30, ROW 31 a OF TABLE 13-30 THE COSTA MESA LAND
USE MATRIX.
The People of the City of Costa Mesa do hereby enact and ordain that Title 13, Chapter 4,
Section 1.3-30, Table 13-30, Row 31a, entitled City of Costa Mesa Land Use Matrix, is hereby
amended to read as follows: (All underlined language is new and to be inserted. All language
struck through is to be deleted.)
_24_
MEDICAL CANNABIS CONTOL ACT
Section 13-30, Table 13-30
Section 13-30, Table 13-30, Row 31a
_25_
MEDICAL CANNABIS CONTOL ACT
Zones
LAND USES
R
R
R RA
C C
C
C
T
M
M
P
P
P
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I
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1
2
2 3
P
L 1
2
1
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31a. Medical
P
P P
P
P
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p
•
•
•
dispeiisary
Cannabis
Businesses
(subject to the
requirements
of TITLE 9,
CHAPTER VI,
MEDICAL
CANNABIS
BUSINESSES)
_25_
MEDICAL CANNABIS CONTOL ACT
Exhibit B
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
AN ORDINANCE OF THE PEOPLE OF THE CITY OF COSTA MESA AMENDING THE
THE COSTA MESA ZONING CODE AND MUNICIPAL CODE
Corrunittee of proponents, who are registered voters of the City of Costa Mesa, sponsoring the
petition:
Taylor Webster Michael Levesque
TEXT OF PROPOSED MEASURE:
"AN INITIATIVE TO PROVIDE REVENUE TO COSTA MESA CITIZENS"
WHEREAS, the Costa Mesa Police Department ("CM'PD') has reported that, as the
number of nnarguana dispensaries and connmercial growing operations proliferated without
sufficient legal oversight, the City and its neighborhoods have experienced negative secondary
elects, including an increase in crime at certain locations associated with unregulated
marijuana dispensaries;
WHEREAS, The League of California Cities and California Chief of Polices Association
have authored statewide legislation, presented by veteran State Senator Lou Correa to provide a
clear road map for reasonable statewide implementation of Proposition 215 and the Medical
Marguana Program Act of 2004 in California;
WHEREAS, legislation regulating the medical marijuana industry is supported by the
Association for Los Angeles Deputy Sheriffs; Association of Orange County Deputy Sheriffs;
California Fraternal Order of Police; International Faith Based Coalition; Long Beach Police
Officers Association; Los Angeles County Professional Peace Officers Association; Los Angeles
Police Protective League; Riverside Sheriffs Association and Santa Ana Police Officers
Association;
WHEREAS, it is in the interest of the citizens of Costa Mesa to have medical
cooperatives operate with reasonable regulation that mirror those put forward by The League of
California Cities and California Chief of Polices Association in order to regulate the distribution
of medical marijuana, which if unregulated threatens the interests of local neighborhoods and
dispensaries, as well as negatively impacting those seriously ill residents of the City;
WHEREAS, the City has a substantial and clear interest in ensuring that medical
marguana is distributed in an orderly manner, in protecting the public health, safety and welfare
of its residents, its dispensaries, the neighborhoods in which Medical Cooperative operate, while
ensuring compassionate access by seriously ill residents to medical marguana in accordance with
the CUA and the MMPA;
WHEREAS, the City seeks to create a gross receipts tax on medical cooperative at a rate
of $60 per $1,000 of gross receipts, which will help to fund necessary general municipal
services, which may include but is not limited to, code enforcement, building inspections, police
protection and crime suppression services, fire prevention and suppression services, which will
facilitate the purposes of this law and which will fi nd necessary services as determined by the
City Council;
NOW, THEREFORE,
THE PEOPLE OF THE CITY OF COSTA MESA HEREBY ORDAIN AS FOLLOWS:
Section 1. Code Amendment. Section 16-14, of Chapter II in Title 16 of the Costa Mesa
Municipal code is hereby amended in its entirety to read as follows:
(a) The rate of sales tax and use tax imposed by this chapter shall be one per cent on all
businesses except for medical cooperative.
(b) Every person engaged in operating or otherwise conducting a business where maryuana
is cultivated, distributed or transferred pursuant to Title 9, Chapter VI shall pay a tax
proportionate to gross receipts earned within the taxing jurisdiction at a rate of six (6) per
cent.
(c) The City Council may impose the tax authorized by this section at a lower rate and may
establish exemptions, incentives, or other reductions as otherwise allowed by California
law. No action by the Council under this paragraph shall prevent it from later increasing
the tax, up to six per cent, or removing any exemption, incentive, or reduction and
restoring the maximum tax specified in this section.
Section 2. Code Amendment. Row 3 1 a of the Costa Mesa Land Use Matrix Table in section 13-
30 of Chapter IV, Title 13, is hereby amended to read as follows:
Section 13-30, Table 13-30, Row 31a
Zones
LAND USES
R
R
R
R
A
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31a. Medical
P
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P_
cooperative
(Subject to the
requirements to
TITLE 9,
CHAPTER VI,
Medical
cooperative)
Section 3. Code Amendment. TITLE 9 is hereby amended to include TITLE 9, Chapter VI,
henceforth entitled "Medical Cooperative Regulations" and is hereby amended in its entirety to
read as follows:
Sec. 9-481. Purpose.
The people of the city of Costa Mesa hereby declares that the purpose of the regulations
in this chapter is to provide a Oviform and enforceable set of nudes for the operation of medical
cooperative, in compliance with state law and future state-wide regulation, to prevent the
proliferation of medical cooperatives, to tax the distribution of medical marijuana as well as to
protect the public health, safety and welfare of residents.
Sec. 9-482. Definitions.
The following terms and phrases, whenever used in this section, shall be construed as defined in
this section:
(a) "Medical cooperative" or "Cooperative" shall be defined in section 13-6 if Title 13 of the
Costa Mesa Municipal Code.
(b) `Build ing" means any structure having a roof supported by columns or walls, for the
housing, shelter or enclosure of persons, animals, chattels, or property of any kind.
(c) `Live Scan" means a system for iinldess electronic fingerprinting and the autornated
background check developed by the California Department of Justice (DO.) which
nrvolves digitizing fingerprints and electronically transmitting the fingerprint image data
along with personal descriptor information to computers at the DOJ for completion of a
criminal record check; or such other comparable inkless electronic fingerprinting and
automated background check process as determined by the City Council\
(d) "Live Scan application" means a form developed by the City Clerk to request Live Scan
services and to contain information relevant to the Live Scan process.
(e) "Location" means any parcel of land, whether vacant or occupied by a building, group of
buildings, or accessory buildings, and includes the buildings, structures, yards, open
spaces, lot width, and lot area.
(fl "Establishment. " Includes any of the fallowing:
a. The opening or comnnencement of any such business as a new business;
b. The conversion of an existing business, whether or not a medical cooperative, to
any of the medical cooperative defined herein;
c. The addition of any of the medical cooperative defined herein to any other
existing medical maryuana business; or
d. The relocation of any such medical cooperative.
(g) "Marguana" shall be construed as defined in California Health and Safety Code Section
1 1018 and fii-ther shall specifically include any product that contains nkiryuana or a
derivative of niarijuana.
(h) "Operator" means any person with responsibility for the establishment, organization,
registration, supervision, or oversight of a medical cooperative, including but not limited
to any person who performs the functions of president, vice president, board member,
director, owner, operating officer, financial officer, secretary, or treasurer of the medical
cooperative.
(i) "Applicant." A person who is required to file an application for a license under this
chapter, including an individual owner, managing partner, officer of a corporation, or any
other operator, manager, employee, or agent of a medical cooperative or an operator of a
medical cooperative.
(j) "Licensee." The person or entity to which a medical cooperative license or medical
cooperative operator's license is issued.
(k) "Chief of Police." The Chief of Police of the City of Costa Mesa or the authorized
representatives thereof.
(1) `Premises" means the space in any buildings of a medical cooperative together with the
spaces within any structures, yards, open spaces, lot width, and lot area at a location that
is occupied or used in the operation of the medical cooperative.
(m)`Person" means any Cooperative, individual, partnership, co -partnership, firm,
association, joint stock company, corporation, limited.
(n) "Structure" means anything constructed or erected which is supported directly or
indirectly on the ground, but not including any vehicle.
(o) " Vehic le" means a device by which any person or property may be propelled, moved, or
drawn upon a street, including but not limited to a device moved exclusively by human
power.
(p) The following words or phrases when used in this Section shall be construed as defined
in California Health and Safety Code Sections 1746, 11362.5, 11362.7 and 11834.02
a. "Alcoholism or drug abuse recovery or treatment facility';
b. "Hospice";
c. "Identification card';
d. `Person with an identification card"
e. "Primary Caregiver'; and
f. "Qualified Patient';
Sec. 9-483. Exceptions.
This chapter shall not apply to:
(a) A health care facility licensed pursuant to Chapter 2 (commencing with Section
1250),
(b) A residential care facility for persons with chronic life-threatening illness licensed
pursuant to Chapter 3.01 (commencing with Section 1568.01),
(c) a residential care facility for the elderly licensed pursuant to Chapter 3.2
(comnneneing with Section 1569),
(d) a hospice, or a home health agency licensed pursuant to Chapter 8 (commencing with
Section 1725), all of Division 2 of the California Health and Safety Code where:
i. a qualified patient or person with an identification care receives medical care or
support services, or both, from the clinic facility, hospice, or home health agency,
and
ii, the owner or operator, or one of not more than tl- ee employees designated by the
owner or operator, of the clinic, facility, hospice, or home health agency has been
designated as a primary caregivers pursuant to California Health and Safety Code
Section 11362.7(d) by that qualified patient or person with an identification care,
or
(e) Any vehicle during only that time reasonably required for its use by:
i. A qualified patient or person with an identification card to transport marijuana for
his or her personal medical use, or
ii. A prinaiy caregiver to transport, distribute, deliver, or give away marguana to a
qualified patient or person with an identification card who has designated the
individual as a primary caregiver, of the personal medical use of the qualified
patient or person with an identification card, in accordance with California Health
and Safety Code Section 11362.76
Sec. 9-484. Zoning Requirements.
In addition to the requirements of this chapter, all medical cooperative shall comply with
the requirements set forth in Article 1, Chapter IX, of Title 13 of the City of Costa Mesa
Municipal Code.
Sec. 9-485. License required for each location; display of license.
A separate medical cooperative license is required for each location within the boundaries of the
City of Costa Mesa at which a regulated medical cooperative is to be established. The
requirements of this chapter for a medical cooperative license are separate and in addition to a
business license, or business tax registration certificate, required under Chapter I of this code.
Every regulated cooperative shall display its license prominently in an area open to the public at
each location, at all times when the location is open for business.
Sec. 9-486. Term of medical cooperative license.
An approved medical cooperative license shall be valid until revoked.
Sec. 9-487. Application for medical cooperative license.
(a) An applicant requesting issuance or renewal of a medical cooperative license shall 'file a
written, signed and verified application or renewal application in a form provided by the
Chief of Police. Each application shall be accompanied by a non-refundable The for filing
or renewal in an amount determined by resolution of the city council, which fees will be
used to defray the costs, of investigation, inspection and processing of such application.
Such fee shall not exceed the reasonable cost of investigation, inspection and processing
of such application. License fees required under this chapter shall be in addition to any
license, permit or fee required under any other chapter or title of the City of Costa Mesa
Municipal Code.
(b) An application for a medical cooperative license shall contain the following information:
1. The applicant shall be either a non-profit mutual benefit corporation or a statutory
agricultural or consumer cooperative incorporated in the state of California.
2. The applicant's complete name, the date of its incorporation, evidence that the
corporation is in good standing under the laws of California, the names and
capacity of all officers and directors, the name of the registered corporate agent
and the address of the registered office for service of process.
3. If the applicant intends to operate the medical cooperative under a name other
than that of the applicant, the applicant shall file the fictitious name of the medical
cooperative and show proof of registration of the fictitious name at the time it
submits its application.
4. A description of the type of medical cooperative for which the license is requested
and the proposed address where the medical cooperative will operate, plus the
names and addresses of the owners and lessors of the medical cooperative site.
5. The address to which notice of action on the application is to be mailed.
6. The names of all operators who will rrianage the distribution of marijuana at the
medical cooperative or cultivate margUana on behalf of the medical cooperative,
who are required by section 9-490 to obtain a medical cooperative operator
permit.
i. The medical marijuana collective shall make available to the Chief of
Police the names of each person who manages the dispensing of marijuana
at the medical cooperative together with a successful Live Scan
background check of each such person.
1. A unsuccessful or failed Live Scan is any Live Scan that shows a
felony conviction having occurred within the past 10 years and/or
shows that the manager is currently on parole or probation for the
sale or distribution of a controlled substance;
7. A certificate and straight-line drawing prepared within thirty (30) days prior to
application depicting the build'ung and the portion thereof to be occupied by the
medical cooperative, and: (1) the property line of any other medical cooperative
Within one thousand (1,000) feet of the primary entrance of the medical
cooperative and any private or public school; and (2) the property lines of any
public park, within one six hundred (600) feet of the primary entrance of the
medical cooperative; and the property lines of any residential zone which is
abutting or across the street fiom a lot which the medical cooperative for which
the license is requested.
(c) If the Chief of Police determines that the applicant has completed the application
improperly, the Chief of Police shall promptly notify, the applicant of such fact and, on
request of the applicant, grant the applicant an extension of time of ten (10) days or less
to complete the application properly. In addition, the applicant may request an extension,
not to exceed ten (10) days, of the time for the Chief of Police to act on the application.
The time period for granting or denying a license shall be stayed during the period in
which the applicant is granted an extension of time.
(d) The fact that an applicant possesses other types of state or city permits or licenses does
not exempt the applicant from the requirement of obtaining a medical cooperative
license.
Sec. 9-488. Investigation and action on medical cooperative license application.
(a) Upon receipt of a completed application and payment of the application and license fees,
the Chief of Police shall immediately stamp the application as received and promptly
investigate the information contained in the application to determine whether the
applicant shall be issued a medical cooperative license.
(b) Within thirty (30) days of receipt of the completed application, the Chief of Police shall
complete the investigation, grant or deny the application in accordance with the
provisions of this section, and so notify the applicant as follows:
1. The Chief of Police shall write or stamp "Granted" or 'Denied" on the application
and date and sign such notation.
2. If the application is denied, the Chief of Police shall attach to the application a
statement of the reasons for denial.
3. If the application is granted, the Chief of Police shall attach to the application a
medical cooperative license.
4. The application as granted or denied and the license, if any, shall be placed in the
United States mail, fust class postage prepaid, addressed to the applicant at the
address stated in the application.
5. The Chief of Police shall grant the application and issue the medical cooperative
license upon findings that the proposed business meets the locational criteria of
section 13-132 of Title 13; and that the applicant has met all of the development
and performance standards and requirements of section 9-494(g) of this chapter,
unless the application is denied for one (1) or more of the reasons set forth in
section 9-489.
(c) If the Chief of Police neither grants the application within thirty (30) days after it is
stamped as received, the application shall deemed granted and the Chief of Police shall
issue of a medical cooperative license.
1. The Chief of Police shall issue no more than four (4) medical cooperative
licenses, subject to subsection Sec. 9-488(c)1(i). If the number of licensed
medical cooperative fall below four (4), then the City shall issue additional
business licenses pursuant to the terms of this Chapter.
i. The City Council shall have the discretion to increase, but not decrease,
the number of licenses issued by the city Finance Director pursuant to the
terms of this Chapter.
(d) Medical cooperative priority review
1. Beginning on the date that is thirty (3 0) days after the effective date of this
ordinance, until the date that is forty -'five (45) days after the effective date of this
ordinance, an applicant who meets the following requirements may submit an
application for priority review. The applicant requirements for priority review are
as follows:
i. applicant is an active California non-profit mutual benefit corporation or
non-profit agricultural cooperative or non-profit consumer cooperative,
that was incorporated prior to May 22, 2014;
H. the applicant has listed with the secretary of state a principal place of
business in the City of Costa Mesa;
iii. the applicant has been issued or has applied for a City of Costa Mesa
business license, issued in the name of the entity, for the purpose of
providing hone care or therapeutic services, and the submissions of the
application or issuance of license occurred prior to May 22, 2014;
iv. the applicant, or an officer or director of the applicant, maintains a lease or
rental agreement in the City of Costa Mesa with a possession or start date
prior to May 22, 2014; and
v. the non-profit mutual benefit corporation or non-profit agricultural
cooperative or non-profit consumer cooperative maintains a California re-
sellers permit issued in the name of the entity at its principal place of
business in the City of Costa Mesa, prior to May 22, 2014.
Sec. 9-489. Denial of application for medical cooperative license.
(a) The Police department shall deny the application for any of the following reasons:
I . That the building, structure, equipment and location used by the business for
which a license is required herein do not comply with the requirements and
standards set for in section 9-494.
2. That the applicant, his or her employee, agent, partner, director, officer,
stockholder or manager has knowingly made any false, misleading or fiaudulent
statement of material fact in the application for a license or in any report or record
required to be filed with the police department or other department of the city.
3. That the applicant has had any type of medical cooperative license revoked by
any public entity within two (2) years of the date of the application.
4. Within ten (10) years immediately preceding the date of the filing of the
application for a license under this chapter, the director or officer of applicant has
been convicted of a felony.
5. That on the date that the business for which a license is required herein
commences, and thereafter, there will be no responsible adult on the premises to
act as manager at all times during which the business is open.
6. The required application fees have not been paid.
(b) In the case of the Chief of Police not acting within the time period under section 9-
487(d), the Chief of Police shall grant the application and issue the license.
Sec. 9-490. Medical cooperative operator permit.
(a) No person shall engage in or participate as an operator of a medical cooperative, without
a valid medical cooperative operator permit issued by the city. All persons who have
been issued a medical cooperative operator shall promptly supplement the information
provided as part of the application for the license required by section 9-488, with the
names of all operators required to obtain a medical cooperative operator permit, within
thirty (30) days of any change in the information originally submitted. Failure to submit
such changes shall be grounds for suspension of the medical cooperative license.
(b) The Chief of Police shall grant, deny and renew medical cooperative operator permits.
(c) The application for a license shall be made on a form provided by the Chief of Police. An
original and two (2) copies of the completed and sworn license application shall be filed
with the Chief of Police.
(d) The completed application shall contain the following information and be accomparlied
by the following documents:
1. The applicant's legal name and any other names (includ ing aliases) used by the
applicant;
2. Age, date and place of birth;
3. Height, weight, hair and eye color;
4. Present residence address and telephone number;
5. Whether the applicant has ever been convicted of felony within ten years of the
application date;
6. Proof of a Live Scan background check for all felony convictions within ten (10)
years ofthe application;
7. State driver's license or identification number;
S. Satisfactory written proof that the applicant is at least eighteen (18) years of age;
9. The applicant's fingerprints on a form provided by the police department, and a
color photograph clearly showing the applicant's face. Any fees for the
photographs and fingerprints shall be paid by the applicant;
10. If the application is made for the purpose of renewing a license, the applicant
shall attach a copy of the license to be renewed.
11. The completed application shall be accompanied by a non-refundable application
fee. The amount of the fee shall be set by resolution of the city council.
12. Upon receipt of an application and payment of the application fees, the Chief of
Police shall inniediately stamp the application as received and promptly
investigate the application.
13. If the Chief of Police deternwnes that the applicant has completed the application
improperly, the Chief of Police shall promptly notify the applicant of such fact
and grant the applicant an extension of tine of not more than ten (10) days to
complete the application properly. In addition, the applicant may request an
extension, not to exceed ten (10) days, of the time for the city manager to act on
the application. The time period for granting or denying a license shall be stayed
during the period in which the applicant is granted an extension of time.
See. 9-491. Investigation and action on application for medical cooperative operator permit.
(a) Within fifteen (15) days after receipt of the properly completed application, the Chief of
Police shall grant or deny the application and so notify the applicant as follows:
a. The Chief of Police shall write or stamp "Granted" or "Denied" on the application
and date and sign such notation.
b. If the application is denied, the Chief of Police shall attach to the application a
statement of the reasons for denial.
c. If the application is granted, the Chief of Police shall attach to the application a
medical cooperative operator permit.
d. The application as granted or denied and the license, if any, shall be placed in the
United States mail, first class postage prepaid, addressed to the applicant at the
residence address stated in the application.
e. The Chief of Police shall grant the application and issue the license unless the
application is denied for one (1) or more of the reasons set forth in subsection 9-
491(f) of this section.
i. If the Chef of Police neither grants nor denies the application within
fifteen (15) days after it is stamped as received, the application shall be
forwarded to the city finance department for issuance of a operator license.
E The Chief of Police shall deny the application for any of the following reasons:
i. The applicant has knowingly made any false, misleading, or fraudulent
statement of a material fact in the application for a license or in any report
or document required to be filed with the application;
it. The applicant is under twenty-one (2 1) years of age;
iii. The applicant has been convicted of any felony within the last ten (10)
years. A license may be issued to any person convicted of a felony if the
conviction occurred more than ten (10) years prior to the date of the
application.
g. Each medical cooperative operator permit shall expire one (1) year fiom the date
Of issuance and may be renewed only by filing with the Chief of Police a written
request for renewal, accompanied by the application fee and a copy of the license
to be renewed. The request for renewal shall be made at least thirty (30) days
before the expiration date of the license. When made less than thirty (30) days
before the expiration date, the expiration of the license will not be stayed.
Applications for renewal shall be acted on as provided herein for applications for
licenses.
h. Should the Chief of Police not act within the time period provided under this
section, the city finance director shall then grant the application no less than five
(days) following the expiration oftime required section 9-491(e)i.
Sec. 9-492. Employment of Operators without operator licenses urilawfi 1.
(a) It shall be unlawful for any medical cooperative to not have at least one licensed operator
on premises during the hours of operation.
(b) It shall be unlawful for any operator to allow any person to operate a medical cooperative
who is not in possession of a valid operator license.
Sec. 9-493. Suspension or revocation of medical cooperative licenses and medical cooperative
operator permits.
A medical cooperative license or medical cooperative operator permit may be suspended or
revolted in accordance with the procedures and standards of this section.
(a) On determining that grounds for license revocation exist, the Chief of Police shall Punish
written notice of the proposed suspension or revocation to the licensee. Stich notice shall
set forth the time and place of a hearing, and the ground or grounds upon which the
hearing is based, the pertinent Code sections, and a brief statement of the factual matters
in support thereof. The notice shall be mailed; postage prepaid, addressed to the last
known address of the licensee, or shall be delivered to the licensee personally, at least ten
(10) days prior to the hearing date. Hearings shall be conducted in accordance with
procedures established by the Chief of Police, but at a minimum shallvnclude the
following:
(b) All parties involved shall have a right to offer testimonial, documentary, and tangible
evidence bearing on the issues; may be represented by counsel; and shall have the right to
confront and cross-examine witnesses. Any relevant evidence may be admitted that is the
sort of evidence upon which reasonable persons are accustomed to rely in the conduct of
serious affair. Any hearing under this section may be contiiued for a reasonable time for
the convenience of a party or a witness. The Chief of Police's decision may be appealed
in accordance with section 2-300 et seq, of the Costa Mesa Municipal Code.
(c) A licensee may be subject to suspension or revocation of his/her license, or be subject to
other appropriate disciplinary action, for any of the following causes arising from the acts
or omissions of the licensee, or an employee, agent, partner, director, stockholder, or
manager of a medical cooperative :
1. The licensee has knowingly made any false, misleading or fi-audulent statement of
material facts in the application for a license, or in any report or record required to
be filed with the City.
2. The licensee, employee, agent, partner, director, stockholder, or manager of a
medical cooperative has knowingly allowed or permitted, and has failed to make
a reasonable e$art to prevent the occurrence of any of the following on the
premises of the medical cooperative, or in the case of a medical cooperative
operator, the licensee has engaged in one (1) of the activities described below
while on the premises of medical cooperative :
i. Any act of unlawful distributio a of marijuana;
ii. Any conduct prohibited by this chapter.
iii. Failure to abide by any disciplinary action previously imposed by an
appropriate city official.
(d) After holding the hearing in accordance with the provisions of this section, if the Chief of
Police finds and determines that there are grounds for disciplinary action, based upon the
severity of the violation, the Chief of Police shall impose one (1) of the fallowing:
1. A warning;
2. Suspension of the license for a specified period not to exceed six (6) months; or
3. Revocation of the license.
i. Revocation of the license shall issue only after two prior determinations of
violation.
Sec. 9-494. Appeal of denial, suspension or revocation.
After denial of an application for a medical cooperative license or a medical cooperative operator
permit, or after denial of renewal of a license, or suspension or revocation of a license, the
applicant or person to whom the license was granted may seek review of such administrative
action by the city council in accordance with the provisions of section 2-300 et seq. of the City of
Costa Mesa Municipal Code. Any proceeding to appeal such decision to the city council shall be
filed within seven (7) days of such decision. If the denial, suspension or revocation is affirmed
on review, the applicant, licensee may seek prompt judicial review of such administrative action
pursuant to California Code of Civil Procedure section 1094.5. The city shall make all reasonable
efforts to expedite judicial review, if sought by the licensee.
Sec. 9-495. Medical cooperative operational requirements.
The following development and performance standards shall be satisfied by a medical
cooperative and included in any approved medical cooperative license:
(a) No medical cooperative shall be operated in any manner that permits the observation of
any rnarguana from outside the location.
(b) Parking lot fighting shall be provided to illuminate all off-street parking areas serving
such use for the purpose of increasing the personal safety of patrons and employees and
reducing the incidents of vandalism and theft. The lighting shall provide a level of
illumination not less than one (1) foot-candle, measured at the surface of the pavement, at
all areas or the parking lot. The lighting shall be shown on the required plot plans and
shall be reviewed and approved by the development services department.
(c) A medical cooperative shall be open or operating for business only between the hours of
8:00 a.m. and 10:00 p.m. on any particular day.
(d) No person under the age of eighteen (18) years shall be permitted within the premises at
any time.
(e) The medical cooperative shall possess a valid and current State Board of Equalization
seller's permit;
(f) The medical cooperative shall not be located within:
1. 1000 foot radius of a "school" as defined under Health and Safety Code
11362.768 (h);
2. 600 foot radius of a public park, public library or licensed child care facility;
3. 1000 foot radius of another registered medical cooperative;
(g) Medical cooperative shall not allow alcohol to be purchased or consumed at the premises
or in any area of the location used for parking any vehicle;
(h) Medical cooperative shall only be located in a cornrmercial zoned property or industrial
zoned property as allowed pursuant to section 13-30 of Chapter IV, Title 13.
O Medical Marijuana Business shall not be located on property lot abutting or across the
street fiom a lot which is zoned for residential use. The above notwithstanding, this
subsection shall not prohibit a medical cooperative from locating across a street fiom any
land zoned residential if the medical cooperative and residential zone is separated by a
public thoroughfare with a minimum roadway width of 80 feet.
Sec. 9-496. Violations/penalties.
With the exception of any violation of this chapter, 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
inprisonine nt. Notwithstanding any violation of the nudity limitation under this chapter, 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. 9-496.1. Public nuisance.
In addition to the penalties set forth above, any medical cooperative which is operating in
violation of this chapter or any provision thereof is hereby declared to constitute apublic
nuisance and, as such, may be abated or enjoined from father operation. All costs to abate such
public nuisance, including attorneys' fees and court costs, shall be paid by the licensee of the
medical cooperative pursuant to section 13-17.
Sec. 9-497 Statewide Regulation.
This ordinance, and the provisions herein, shall be read consistent with any statewide regulation
ofinedical marijuana that is promulgated by the legislature or by voter approval in the fixture. in
the event Statewide Regulation is passed pursuant to the decriminalization or legalization of
marguana for recreational use, the ordinance shall govern the conduct of those business allowed
to distribute marijuana under such provisions.
Section 4. Amendment and Repeal.
The provisions of the Costa Mesa Municipal Code added by, amended by, or contained in this
initiative measure may be amended to further its purposes by ordinance passed by a majority
vote of the Council and approved by the Mayor. The provisions of the Costa Mesa Municipal
Code added by, amended by, or contained in this initiative measure shall not be repealed, except
by an ordinance adopted either by petition or by the Council at its own instance and adopted by a
vote of the electors.
Section 5. 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.
Section 6. Effective Date.
The City Clerk shall certify as to the passage and adoption of this Ordinance. This Ordinance
shall take effect ten (10) days following the date on which the City Council of the City of Costa
Mesa declares that this Ordinance was adopted by a majority of the voters voting on the measure
at the municipal election on November.
Section 7. Majority Approval; Effective Date. This ordinance shall be effective only if
approved by a majority of voters at the next special or general election and shall go into effect on
more than ninety days after the election.
Section S. Competing Measure.
Competing Measures. In the event that this measure and another measure or measures relating to
the taxation and regulation of medical marguana shall appear on the same ballot, the provisions
of the other measures shall be deemed to been conflict with this measure. In the event that this
measure shall receive a greater number of affirmative votes, the provisions of this measure shall
prevail in their entirety, and the provisions of the other relating to the taxation and regulation of
medical marijuana shall be null and void.
Section 9. Special or General election.
This initiative Measure shall be set for a special or general election at the earliest time allowed
by law.
ATTACH ME NT 4
RESOLUTION NO. 16-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA AUTHORIZING WRITTEN ARGUMENTS FOR OR AGAINST THE
PROPOSED ORDINANCE TO ALLOW OPERATION OF UP TO EIGHT MEDICAL
MARIJUANA (CANNABIS) BUSINESSES IN THE CITY OF COSTA MESA; SETTING
PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING THE MEASURE
AND, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, a General Municipal Election is to be held in the City of Costa Mesa,
California, on November 8, 2016, at which there will be submitted to the voters the
following proposed measure:
Measure : Allow Operation of up to Eight Medical
Marijuana (Cannabis) Businesses in the City of
Costa Mesa
Response
Vote
Shall the ordinance, to allow operation of up to eight medical
marijuana businesses with: six percent tax on medical
Yes
marijuana (estimated annual tax revenues $48,000 to
$912,000); one percent tax on other products; exemption from
No
permits; regulations not subject to change by City Council
except for increasing businesses; precedence to prior
businesses; and locations limited to commercial and industrial
areas, be adopted?
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That the City Council affirms for measures placed on the ballot by
petition, the persons filing an initiative petition, pursuant to Elections Code Section
9282(a) may file a written argument in favor of the ordinance, not exceeding 300 words,
and the legislative body may submit an argument against the ordinance.
SECTION 2. That the City Council authorizes the following member(s) of it's body
(Mayor Against)
(Mayor Pro Tem Against)
(Council Member Against)
(Council Member Against)
(Council Member Against)
to file a written argument Against Measure as specified above not exceeding 300
words, accompanied by the printed names(s) and signature(s) of the author(s) submitting
it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of
California. The arguments may be changed or withdrawn until and including June 17,
2016, 5:00 p.m.,.the date fixed by the City Clerk after which no arguments for or against
the City measure may be submitted to the City Clerk.
Resolution No. 16-32 Page 1 of 3
The arguments shall be filed with the City Clerk, signed, with the printed name(s)
and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization,
the name of the organization, and the printed name and signature of at least one of its
principal officers who is the author of the argument. The arguments shall be accompanied
by the Form of Statement To Be Filed By Author(s) of Argument.
SECTION 3. That the City Council directs the City Clerk to transmit a copy of the
measure to the City Attorney, unless the organization or salaries of the office of the City
Attorney is affected.
a. The City Attorney shall prepare an impartial analysis of the measure not
exceeding 500 words showing the effect of the measure on existing law and
the operation of the measure. If a measure affects the organization or salaries
of the office of the City Attorney, the City Clerk shall prepare the impartial
analysis.
b. The analysis shall include a statement indicating whether the measure was
placed on the ballot by a petition signed by the requisite number of voters or by
the governing body of the city.
c. In the event the entire text of the measure is not printed on the ballot, nor in the
voter information portion of the sample ballot, there shall be printed immediately
below the impartial analysis, in no less than 10 -point type, the following: "The
above statement is an impartial analysis of Ordinance or Measure _. If you
desire a copy of the ordinance or measure, please call the election official's
office at 714-754-5225 and a copy will be mailed at no cost to you.
d. The impartial analysis shall be filed by June 17, 2016, 5:00 p.m., the date set
by the City Clerk for the filing of primary arguments.
SECTION 4. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED ON JUNE 7, 2016.
Stephen M. Mensinger, Mayor
ATTEST:
APPROVED AS TO FORM:
Brenda Green, City Clerk Thomas Duarte, City Attorney
Resolution No. 16-32 Page 2 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
foregoing Resolution No. 16-32 was duly passed and adopted by the City Council of
the City of Costa Mesa at a regular meeting held on the 7t" day of June, 2016, by the
following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City
of Costa Mesa this 8th day of June, 2016.
BRENDA GREEN, CITY CLERK
Resolution No. 16-32 Page 3 of 3
RESOLUTION NO. 16-33 ATTACHMENT 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA AUTHORIZING WRITTEN ARGUMENTS FOR OR AGAINST THE
PROPOSED MEASURE TO ALLOW OPERATION OF UP TO FOUR LICENSED
MEDICAL MARIJUANA BUSINESSES IN THE CITY OF COSTA MESA; SETTING
PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING THE MEASURE
AND, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, a General Municipal Election is to be held in the City of Costa Mesa,
California, on Tuesday, November 8, 2016, at which there will be submitted to the voters
the following measure:
Measure _: Allow Operation of up to Four Licensed
Medical Marijuana Businesses in the City of Costa
Mesa
Response
Vote
Shall the ordinance, to allow operation of up to four medical
marijuana businesses with: six percent tax on medical
Yes
marijuana (estimated annual tax revenues $24,000 to
$456,000); required industry specific licenses; required
No
operator permits; regulations subject to change by City
Council including increasing businesses; precedence to prior
businesses; and locations limited to commercial and industrial
areas, be adopted?
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That the City Council affirms for measures placed on the ballot by
petition, the persons filing an initiative petition, pursuant to Elections Code Section
9282(a) may file a written argument in favor of the ordinance, not exceeding 300 words,
and the legislative body may submit an argument against the ordinance.
SECTION 2. That the City Council authorizes the following member(s) of it's body
(Mayor Against)
(Mayor Pro Tem Member Against)
(Council Member Against)
(Council Member Against)
(Council Member Against)
to file a written argument Against Measure as specified above not exceeding 300
words, accompanied by the printed names(s) and signature(s) of the author(s) submitting
it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of
California. The arguments may be changed or withdrawn until and including June 17,
2016, 5:00 p.m., the date fixed by the City Clerk after which no arguments for or against
the City measure may be submitted to the City Clerk.
Resolution No. 16-33 Page 1 of 3
The arguments shall be filed with the City Clerk, signed, with the printed name(s)
and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization,
the name of the organization, and the printed name and signature of at least one of its
principal officers who is the author of the argument. The arguments shall be accompanied
by the Form of Statement To Be Filed By Author(s) of Argument.
SECTION 3. That the City Council directs the City Clerk to transmit a copy of the
measure to the City Attorney, unless the organization or salaries of the office of the City
Attorney is affected.
a. The City Attorney shall prepare an impartial analysis of the measure not
exceeding 500 words showing the effect of the measure on existing law and
the operation of the measure. If a measure affects the organization or salaries
of the office of the City Attorney, the City Clerk shall prepare the impartial
analysis.
b. The analysis shall include a statement indicating whether the measure was
placed on the ballot by a petition signed by the requisite number of voters or by
the governing body of the city.
c. In the event the entire text of the measure is not printed on the ballot, nor in the
voter information portion of the sample ballot, there shall be printed immediately
below the impartial analysis, in no less than 10 -point type, the following: "The
above statement is an impartial analysis of Ordinance or Measure _. If you
desire a copy of the ordinance or measure, please call the election official's
office at 714-754-5225 and a copy will be mailed at no cost to you.
d. The impartial analysis shall be filed by June 17, 2016, 5:00 p.m., the date set
by the City Clerk for the filing of primary arguments.
SECTION 4. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED ON JUNE 7, 2016.
Stephen M. Mensinger, Mayor
ATTEST:
APPROVED AS TO FORM:
Brenda Green, City Clerk Thomas Duarte, City Attorney
Resolution No. 16-33 Page 2 of 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
foregoing Resolution No. 16-33 was duly passed and adopted by the City Council of
the City of Costa Mesa at a regular meeting held on the 71" day of June, 2016, by the
following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City
of Costa Mesa this 8t" day of June, 2016.
BRENDA GREEN, CITY CLERK
Resolution No. 16-33 Page 3 of 3
ATTACHMENT 6
RESOLUTION NO. 16-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR
CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS
WHEREAS, Section 9282 of the Elections Code of the State of California provides
for written arguments to be filed in favor of or against city measures not to exceed 300
words in length; and
WHEREAS, Section 9285 of the Elections Code of the State of California
authorizes the City Council, by majority vote, to adopt provisions to provide for the filing
of rebuttal arguments for city measures submitted at municipal elections;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That pursuant to Section 9285 of the Elections Code of the State of
California, when the elections official has selected the arguments for and against the
measure (not exceeding 300 words each) which will be printed and distributed to the
voters, the elections official shall send a copy of an argument in favor of the proposition
to the authors of any argument against the measure and a copy of an argument against
the measure to the authors of any argument in favor of the measure immediately upon
receiving the arguments.
The author or a majority of the authors of an argument relating to a city measure
may prepare and submit a rebuttal argument not exceeding 250 words or may authorize
in writing any other person or persons to prepare, submit, or sign the rebuttal argument.
A rebuttal argument may not be signed by more than five authors.
The rebuttal arguments shall be filed with the City Clerk, signed, with the printed
name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an
organization, the name of the organization, and the printed name and signature of at least
one of its principal officers, not more than 10 days after the final date for filing direct
arguments. The rebuttal arguments shall be accompanied by the Form of Statement To
Be Filed By Authors(s) of Argument.
Rebuttal arguments shall be printed in the same manner as the direct arguments.
Each rebuttal argument shall immediately follow the direct argument which it seeks to
rebut.
SECTION 2. That all previous resolutions providing for the filing of rebuttal
arguments for city measures are repealed.
SECTION 3. That the provisions of Section 1 shall apply only to the election to be
held on November 8, 2016, and shall then be repealed.
Resolution No. 16-34 Page 1 of 2
SECTION 4. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED ON JUNE 7, 2016.
Stephen M. Mensinger, Mayor
ATTEST:
Brenda Green, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROVED AS TO FORM:
Thomas Duarte, City Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
foregoing Resolution No. 16-34 was duly passed and adopted by the City Council of
the City of Costa Mesa at a regular meeting held on the 7th day of June, 2016, by the
following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City
of Costa Mesa this 8th day of June, 2016.
BRENDA GREEN, CITY CLERK
Resolution No. 16-34 Page 2 of 2