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HomeMy WebLinkAbout16-29 - Notice of General Municipal Election on Nov. 8, 2016, for a Proposed Measure (8MMD Licenses)RESOLUTION NO. 16-29 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 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? 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�un'this 7th day of June, 2016. James ly/Wensinger, Mayor Pro Tem 0 b�&&ja-- 9.� Brenda Green, Oty Clerk a quin Oreziq4i, Deputy 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. 16-29 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: Foley, Genis, Monahan, and Righeimer, NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Mensinger 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. 16-29 Page 3 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 I — 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 dispensailes 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 Linder state law; —S -- MEDICAL S -- 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 tinder California law, nor do they criminalize the possession or cultivation of medical cannabis by specifically defined classifications of persons, as authorized tinder California Iaw; WHEREAS, medical cannabis businesses shall comply with all provisions of the Costa Mesa Municipal Code ("Coda"), 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 wider 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 VL 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; -6- 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. Authorit 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 Cbmpetin measures. 9-493 Amendment and repeal. 9-494 Severability. 9-495 Statewide regulation. 9-496 Spccial or general election. Health and Safety Cade Sections 11362 and 11362.7 et seg the Pcaple of flee City of Costa Mesa do enact this Cha tp er which shall be known and may be cited as the "Medical Cannabis Control Act."" -7- MEDICAL 7,- MFDICAL CANNABIS CONTOL ACT whatsoever, and expressly does not waive sovereigg immunity with respect to the medical cannabis business program established. herein ,.,.or for the activities of any medical cannabis business, Each medical ggatiabis-business recognized by_the city shall a, —Release the cityits .agents, officers, elected officials, and employees from any iniuries, damages, or liabilities of any kind #hat nesEdt from an aures ar prosecution of the medical cannabis Provider association or its p—atticipants for a violation of state or federal IgA. b. Indemnify and bold harmless the City. its -qgentq. nffinnnq Ap�ntpri nwwom nearby property oWiers or other third parties due to the pperafions at the medical cannabis business and or premises: and c. Indemnify and hold hanvless the City its agonts� wears elected officials provided ,�atthc medical cannabis business and/or premises. SEC. 9-483 - Purvose and intent, It is the purpose and intent of this Article to linin Lt the maximum purnber and egmabis as authorized on of medical cannabis by specifically defigtd_classifications of-ppraonAas-Authorized tinder California law. to conflict with federal or state lawnor is this Article intended to respond to or invite litigation those enactments enconipass. _8 MEDICAL CANNABIS CONTOL ACT SEC. 9-484 — Physician/Patient confidentiality Requirements set forth pursuant to this Chapter shall preserve to the maximum extent possible all ieizal protections and privileges consistent with reasoxiab verifvine the SEC. 9-485. Definitions. A. The fallawin }_phrases and words when used in this section, shall be constnt7ed 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 Fox the liousine shelter or enclosure of persons animals chattels or property of any kind "Cannabis" or "mariluana" shall be construed as defined in California Health and Safetti Code Section 11018 and further shall specifically includeany product that contains marijuana or a derivative of marijuana orad all parts ofthe plantC eatuiabis, whetherrowin oar notthe seeds thereof the resin extracted from anpart of the plant• and every compound manufacture, salt derivative, mixture, or[] Preparation of the plant its seeds orresin, It includes marijuana infused in17foodstuff. It does not include the mature stalks ofthe plant fiber -uectl fl•am(:1the s lKs oil or cake made from the seeds of the plant any other coznpotwd gmanttfaottine salt, derivative mixt—gre or ynrepaarration of the mature stalks exce t -the resin extracted therefrom), fiber. oil, or cake, or the sterilized sends of the plantOare incapable afgermination.0 "Collectives" and "cooperatives" when referrin to o mod—iieai carrx�abis G7 or anications, bcrtlz mean associations of five or mare rtualified patients tsausCwith identification cards orpri air caregivers of qualified patients and personsdpvith identification cards who associate as an ine rparated or uninoarportttedClassociatian to callactively ar cooperatively cultivate and distribute medicalQcannabis for use exclus'vt elv b}r their regisfered members in strict accordance withElCalifornia Health and Safety Code sections 11362.5 and 11362.7 e se _ "Edi le r dxcts_"means madjuana_cpltivated by medical cannabis businesses, and participants as part oftheir medical regime.in strict accordanec with state law "Felony Conviction" means—gU_,; y,conviation whether uilt�plea _„judicial reline, or jit verdict. of any felonv offense, cconvietion of a felon officpwe that has been dismissed. withdrawn, expunged, or set aside. whether,pnrsuant,,,t alifornia Penal Code section 1203.4 -9- MEDICAL CANNABIS CONTOL ACT California Penal Cade section 1000 California Penal Cade section 1385 the interest of justice SUCII Other comparable InYJeSS electronic ,-- "LqPc9atio!nf" means any parcel of land r vacant or occ vacant by a huilding, group of buildings or accassoty buildings and includes the buildings structuresyards, open spaces, lot width and lot area. "Manager" means anv person with responsibility Lol theestablishmentarganization owngr, operating officar financial officer searetary ar #reasurer of the medical cannabis business. vie active converting.pLocessing, preparin'. storm , acka in roviding an lar retail sales of medical cannabis. A medical cannabis business ra Lg�� 9�a movide medical cannabis assistance to qualified�xqmns with —medical pjannabis identification card (jjs set forth iN4—AA. or the primary, ej n the. J1N4P cat, mer of such persons. Medical cannabis businesses may assist ana for medical collectives, cooperatives dispensaries. atjyafions and nmi 'UaLadetLvgry_scrvicesMedical Cannabis businesses include "medical ingjjjuana businesses °' (1) "Medical can%Lbis btjaincss"ALiqll not include nor be bitteei reted to (ueludAny of the followin : a. who reside at reside i�oer(y cultivate 1114niiLg aha, g -10-1 MEDICAL CANNABIS IS CONTOL ACT b, The location of any. clinic licensed pursuant jQ—QQLCr I�commencing with Section 1200). a health care facility licensed pursuant to Chapter 2 Safety Code where: (i) a gualified patient operson with an identification card receives medical care or supportive services, or both,, from the clinic facility, facility, hospice, or home health agency has beon designated as a rX caregiver pursuant to California Health and Safety Code Section 11362 ?d by that gualified, patient or person with an identification card, "Medical cannabis identification card'"..,_ "Medical marijuana identificatio.n. card " and "identification card" mean a0document issued by the State Department of Health Services pursuant toOCalifornia Health and. Safety Code sections 11362.7 et seqth, at identifies g � Rerson0authorized to engagge in the medical use of cannabis and the Is bistq!y,gnd number of hours worked, "Structure" means anvtltina constructed or erected -which is-supp®rtqd_directly oC direqtiv on the around. but not including any vehicle, moved exclusively by humanj2ower. R The follow' pleases or s when used in this ticLi shallbe construed as defined EMU-- -__ qq III California Health and Safety Qgdt J. - Sections 17171611362.5. and 11362.7. "Hospice"; "[dentification card" "Person with an identification card: "'.Priiiicigy-care civef; and "Qualified patient." - I I - MEDICAL CANNABIS CONTOL ACT SEC. 9-486. Medical cannabis businesses Prohibited. A. It shall be unlawful to own establish o er to use ar pernn t the establishme�rar �eratian of a medzcal cannabis business ar participate as an employee contractor went volunteer ax in any manner or capacity other than as provided in flys Chester B. The general prohibition contained in this section shall include renting otherwise permitting a medical cannabis business to Occup or use,a location vehicle ar other mode of kqnMartation. SEC. 9487. Limited immunitv. 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 A. Business license, L The City Tax Collector and/or The City Treasulli Division MARmMan ement -— Department shall issue, alusiness license fqr a medical cannabis business that meets priority_reaistrati )n or non -priori re r _jqgistr, j�eMPnts detailed below in this section, a. Prior it -Y W Re 'stration, ---_ L Beginning on the date that is thi�30 d�asafter the effective date of this ordinance,�andlasting for tonLQ)_business daxs EL medical cannabis business mav sub tLa gj�rjorj �rqgjL tion application and obtain a husiness license for the p4WgLsc of operating medical cannabis business Agmthe Ci of Costn --- .Mesa if on or —before &IgLX 30 �2014 wch�qlican�t. (a) Has never operated a medical cannabis or medical been convicted of agora inmedioal cannnabis bLisintss, or ggyqLcivilly been ,a&d a. medical cannabis business business without a bu� �npss license in theme of Costa a. The lack of any court record of a oitation conviction or civil7tipn by the city shall be sufficient moofto satis-fv that applicant has root operated a medical cazmabis busuzoss in the City of Costa Mesa. (b) Has been isu-ed-ght—jsiness licsa,-s-e-o-r -has _applied for A business license from the City of Costa Mesa for,, MEDICAL CANNABIS CONTOL ACT medics! cannabis business or medical mari'uana business; a. Proof of application. or allernot to apply for a CostaMesa business license for the urpose of a medical cannabis business business shall be satisfied box comet stent verifiable dpcumentation, including, but not limited to, a date. stamped business license ayglication from the City, a filed application a copy of a denial letter for a medical cannabis business from copy of an application for a medical cannabis business Iicense�qlgnwith �some proof that a mailing was ggrit to the Citv of Costa Mesa Tress EryManaernent Division P.0 Bog 1200 Costa Mesa CA 92628-1200.witbig seven (7) days of thesigning of the simle-d—on, or any documentation stamped "Received" bye igglud-in&,but not JjMitqdAqjajnof Cuts of Costa Mesa Land Use Matrix Table 13-30 or a,copy of a received stamped Dopy ofa business card of a §enlor planner Mesa, (c) Has filed for Incorporation, filed Chapters of Association of or Lzafion with the Secretary of State of California for the pum2se ofaatin anon-profrt me teal -cannabis business or medical marijuana businoss a,nc oofqfjincorporation -articles of Agso i .. � _ ciation Oy Limited company status shall be satisfied by a true and correct copy of the articles of jAqgMorqtjon filed dt—htfa_Secretqry of Stgte Chapters Of Association verifiable documcntafiojv (d) PossesscsLqrkqs a lied �L Seller's Permit from the _ fora State Board of Eaualization in the name of isi b the business. L b _ness. (e) Possesses or has applied for a License to Sell Nur r Xp _Mj Stock for the Citv of Costa Mesa which was applied fcrr or ksged by the DLqpartrnent of Food and AgriqWture. M Has applied for a Live Scan bqckgnLLnd check.: (g) R -Os marijuana r 9-n Health and Safety Cade section l 1362 ee. see.; (h) LossLess or haqiqd or medical marijuana -App! - - for - - a m - - - - - --- J_marijuana identification �qd pursuant to Health arid Safety Section 11362,7 etsee.: (i) Possesses or has applied for policy (bodily uuimY proydama re and njqdicql '-13 — NIEDICAL CANNABIS CONTOL ACT gannabis liability which specifnc�des liability for medical cannabis and/gr medical marijuana a. Proof of application £ar a general liability insurance palicXR which specificall includes liability far medieal cannabis and/or medical marijuana maKbe Shawn by aguote from an insurance company or any_other verifiable documentation. (j) The app ice t assesses a notarized si ned and dated authorization to submit to finite rintinu and phatagraphing and authorizine the City in writint to obtain information from criminal jusdee a encies financial in§ tutions Federal. State and local government agencies, and other persons and entities The written authorization shall include consent to release the information to the City far use in connection with the business license. (k) The ap incept possesses a notarized sinned, and dated statement indicating to the City that the applicant will hold harmless indemnifyand defend the City aaa all claims and litigatLo m the issuance of q licenses, including env claims and litieatian arising from the establishment, operation, ar ownership of the medioal cannabis establishment, b. Non -Priority 12eistratiau. cannabis business ma, sy uhtnit a non -prior registration a lication Ic the Treasury Diviwion Manaaement T epartment and/or CityTax Collector fora business licenseprovided the medical cannabns business meets the fallowi criteria (a) Has never operated amedical cannabi�,or medieat marij uana business in the city of Costa Mesa has never been convicted a£operatin medical cannabis bi iness, or never been civilly aAjudicated ofggLatin a medical cannabis business or medical —-J-ana business without a business license in the City of Costa Mesh a. The lack of env oogq record of a citation conviction or civil adjudication by the city shall Le sufticiept proof to satisfy that aoplicam has na, t operated a medical casuYabis btusiness in the C'itvof Costa Mesa. (b) Has been Lsstjed a business license or has applied for a business license from the City_g Costa efor a --14- MLDICAL CANNABIS CONTOL ACT medical cannabis business or medical mariivana .business - a. Proof of gpplication. or attempt to apply —for a Costa Mesa business license for the DqWgse of a medical cannabis business or medical marijuana business shall bqsatisfied by any competent verifiable documentation, inclLjdin& but not limited to, g, date scam, ped 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 cof on ggplication for a medical cannabis business license along with some proof that a mailing was sent to the City of Costa Mesa, Treasury Management Division, PLO Box 1200 Costa Mesa, CA 92628-1200 within seven (7) days of the sigLiof the application, documentation stain ed "Received" by the city including. but not limned to a printout of City, of Costa Mesa Land Use Matrix Table 13-30 or a copyofa received stamped copy of a business card of a scajor lamxer for the City Mesa. (c) Has filed for Inco oration filed Cha tern of Association for a limited liability �qnvor articles of organization with the LeqrqqrLqf State of —Cali&rnia for ae PRMQS—eof operating, anon -profit medical cannabis business or medical marijuana business, a. Proof of incqW2iLqtiop artL s Qj association. or � do ta j__ 1ji-piLed �coni anyAtatus shall be satisfipd by a true and correct copy of the articles of incorporation filed with the Secretary pf3.tate Chqrs 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, (c) Possesses or has applied for a License ip-Sell Nursery Stock for the City of Costa Mesa which was applied for or d issog- by the Department of Food and A&tjcultu= (t) Has gpplied for a Live Scan background check; (g) Possesses a physician's medical cannabis or medical mariWaria recommendation pursuant to!Zql1i1brnja Real th and Safety Code sect�ionl 13 2 et sec.; (h) Possess or has applied for a medical marijuana identification card oursuant to Health and Safe_ Code Section 11362.7 etsee,, (i) Possesses ox has applied for a general ljqbility insuranoe policy(bLc Lly intigy. property darriage, and medical - 15 --MEDICAL CANNABIS CONTOL ACT cannabis liability), which specifically jagludes liability for medical cannabis and/or medical mariivana a. Proaf of apulication for a general liability insurance policy, which specifically includes liability for medical cannabis and/or medical marijuana maybe shown by a quote from an insurance company or any other verifiable documentation. 0) The applicant possesses a notarized, signed, and dated authorization to submit to fingerprinting and photoeraphing and authorizing the City in writing to obtain information from criminal iusticeagencies financial institutions Federal State and local government agencies and otherpersons and entities, The written authorization shall include consent to release the information to the City for use in connection with the business license (ic) 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 incl idine gri_y claims and litigation arising from the establishment, operation. or ownership of tlic medical canners establishment. c. The Tax Collector or City shall issue a business license or a rejection with a written explanation to an applicant within 45 days of the app&anVs written request for a business license The failure of the and the medical cartnabis bossiness shall be Dermitted to operate. d, The business license shall be valid for Uyo 2 years, irrespective of whether or not the business is active operating duri that period. An application for renewal of a medical catzoabis business license must be filed no later than thin: 30 calendar da s rior to the expiration of the registration but no earlier than sixty (60) calendar days pl or to the t iration of the registration. A registration shall be renewed for an additional period of two (21-_ycars-hy submitting an application to the Tax Col ector (,.City. e, The fee required for apt�lzo to ion and registration for a medical cannabis lousiness license shall not excced Eye hundred dollars , 500.00), 2. NNo permit required: The People of the City of Costa Mesahere�_declare that the operation of a medical cannabis dispensary in compliance with this Chapter is not detrimental to the public health. safety welfare o1moral standards of the City, As such, the Cit shall not ree cure the medical canna is 16 - MEDICAL CANNABIS CQNTQL ACT business to obtain any special use permit, it. conditional use permit or, any other , permit Pursuant to any section of code specifically but not limited to. Sections 9-33 and 9-114as a condition president or condition subsequent to obtaining a business license and/or business tax registration certificate. thischapter. 3, Business tax registration certificate F1 the medical cannabis business taxed is Lr—qnsfcr�red MLhether by sLlg or other,Adaq,jo another ,personsoxentity under such ciroumstanc s� that tl�e real — or ultimate ownership of the business after the transfer is substantially similar to the real or ultimate, awnersbin existing before the transfer and the transferee meets all the non-priorityregistrationrequirements listed in Subsections ,(_a) through (f) of Section 9-487CA.jLLXb.7fi.j. licenses pursuant to the terms of this CIIQter. a. City council shallbayethe discretion to increase but Ro �t decrease the number of business licenses issued by the Tax Collector Division Management Qepartment. or City to medical cannabis businesses pursuant to the term of this Chapter, S. Any such exercise of discretion wider Section 4(a) above ing<LasiLig the number of new business licenses above the current maxiMurn rugnber of nine SEC. 9-48'7.1. Operational requirements. A medical cannabis business shall be immune to the prohibition set out in Section 9.486 and theedictsset forth in Costa Mesa Municipal Code, so long as flig medical cwtnab7lbvsfness obtains a business license and complies with the following qMrational Safe radius restrictions: The medical cannabis business is not located within: - t7 -MEDICAL CANNAMS CONTOL ACT R9 i. A 600 -foot radius of a public school as defined tinder Health and Safety Carle §11362,768 (� R. The digWces specified in this paragraph shall be the horizontal distance measured in a straight line from the grope line Qfthe school to the praaerty line of the medical cannabis business without regard to intervening shuctures, cannabis businesses are prohibited in all other use districts or zones. i. A marijuana business shall not be located within a 1000 -foot radius of any other licensed medical cannabis business, ii. The distances specified in this vara ria h sball be the horizontal distance measured in a straight line from the Dmoerty line of the first licensed medical 3, 1Dlelivea res i(A ns: medical cannabis business shall not deliver mnrijuana to its members within the City af, Costa Mesa unless the medical cannabis business maintains insurance for its mann sa rs, volunteers or employees who deliver the marijrGtuia and the medical cannabis business raintains a location withine the My of Costa Mesa which Rossesses a business license under this Chapter. 4. Insurance Requirement: The medical cannabis business shall possesses a commercial general 1ia13ilit lswance policy {badil�injut prop r amaae and medical cannabis Habili ).which specifically includes liability for medical cannabis. 0 T Restriction of minors as employees: It shall be unlawful for any mediealcannabis business to employ any person who is not at 1_ east_ears_nf a e. 8. Restriction on hours of operation: polos of operation are linvted to the hqu s between 9 a.m, and 1 O_p.m seven days aweek. 9. Vsibie ri i unna restrictions: Anv mari9uana within a medical cannabis business shall not be visible with the naked eve from the exterior of the business's premises, -- I s -- MEDiCAL CANNABIS CONrOL ACT 10, Alcohol restrictions: The medical cannabis business shall prohibit the sale, dispensing, 11. Premises use restrictions: The medical cannabis business shall not allow. any persons to inhale, smoke, catinuestor otherwise consume marijuana at the location, in the parking exceptions provided in local and .state .law that permit smoking in desiymated areas within 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 -� WM for non-medical igil 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). Tiro medical cannabis shall be smoked ,rested or otlicrwisc consumed on the premises of the business or within fifty (50) feet of a =&qj cannabis business" Such sign shall pbqpfimed_jg_14-point font or larger upon 8 1/2 by_1 I_paagr andposted at some conspicuous par tofsuch site. 13. Restrictions relating to cultivation, manufacturing, and processing:, Medical cannabis businesses shall exchange, sell, transfer, and distribute _q!I Wfnilla gr cannabis cultivated, maurifLa�ctured o processed in the State of California and I that has not left the State before arriving at the business and that has been cultivated only �bv, and provided only to its in a closed-circuit of production and cpgaqmn�M ,jovide ) its verified mein 14. Medicine inventory restrictions: The medical camiabis business may, possess and cultivate a reasonable auanti-tv of dried mariluana and inariinana Plants to incet the personal medical needs of their members, 15. m4utager vohurteer or emplayee. The medical caimabis businesses' managers must be registered ered memb�g ,of the mcdl al _can nabis oLgIL-Live scw-i apa Liqations -rccch, ed by mpdl&i canabis business shall be processed and received by the Costa Mesa Police Department in accordance with California Dcoartinent of Justice guidelines. 16. Employee background restrictions: Prior to being offered a position of gianggernent oK �Iqvinentat a medical cannabis business, an applicant fqr_a_position QfLmanager volunteer. or employee of the medical cannabis business who dispenses medicalcaqqabis MEDICAL CANNABIS CONTOL ACT must submit and successfuIIy pass an annual Live Scan background check by December 31 of each vear in order to be era loved at the medical cannabis business. A failed Live 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 Scan. 17. Patient confidentiality: hi order to protect confidentiality, the medical cannabis business mavmaintain records of all qualified patientg with a valid identification oatd and pfimary 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 11362.7et s- eq. 18. Manufacture of concentrated cannabis restrictions: The medical cannabis business shall not participate in or otherwise engage in the manufacn�re of concentrated q.,vulabis in violation of California Health and Safety Code section 11379.6, 19. Security requirements: The rnedical cannabis business shall provide_ the following security measures: L the medical catinnabis_ busuness shaiI_ maintain an alarm Jystem reasonably designed to ensure the safety, of persons and to protect the premises from theft: the business shall �royide a seciaity guard patrol for the pre rr�u'ses durhw all lLotg� of operation. iii. the security guard patrol shall be a duly -licensed and uniformed security guard ap traL. 20. Packaging requirements: All medical cannabis businesses shall distribute all non -live inariiiLanain sealed naelvagin or nn `Chi.lcl Proof' containers equipped with eitheLa "Push or Tum„ "Reversible" top vial or "Pop Top' or "S ueeze Top" locking mechanism. 21. Warning labels requirements: All.medic la cannabis packaging shall contain a war nIuig drat the—product contains marijuana, and it is to be consumed only with apbysioian's recommendation. -20- MEDICAL. CANNAWS CONTOL ACT 22. 23. 24. 25. the marijuana plant or pictorial representations of marijuana use Edible restrictions: Medical cannabis businesses that prepare, disnense or sell edible with all necessary permits related to the prenaration distribution and sale of food will be an express violation of this Chapter. Property. Eyety person engaged in operating or otherwise conducting a medical cannabis ii. One (1) percent or $IO.OQ for each x1.000 on the sale of all other_jqngible persarral property at retail. iii. For the numoses of this Section, the above taxes apply only iprospcetively. The iv, regulated o permitted by Chapter Vl of this Code and California ldealth and Safa Code sections 113&?.5, et seq., thatinvalyes transparting dispenslnE^ plant for medical purposes. Sec, 9-488. Cultivation of medical cannabis. Medical cannabis businesses anav cultivate a reasonable amount of mariivana consistent with their member patient's needs. All medical cannabis, cultivation subject to this Chapter shall be concealed fian7 pcablic view at all stagps of Prowth, and there shalj be qq—qxterioaevid.ence of cultivation occurring at the premises from a Lp iblicL glit of way or from an adjacent parcel. Medica] cannabis cultivation subject to thus Chapter shall not create unreasonably offensive oder � create excessive dust noise lxeat smalce or other impacts that are unreasonably disturbing tame ns of norma[ �p, itivitypresent on, adjacent property. See. 9-489. Transportation of medical cannabis; Activities entailing the transportation of medical cannabis in accordance with the Com assionate Use_Aci the Medical nxari'nana pratnnm act. The Attorney General Guidelines. and this Chapter shall bee ,jawfiu�dy when -2t- MEDICAL CANNABIS CONTOL ACC medial mariivana business of the same medical cannabis collective or association when the medication. See. 9-490. Violation and enLoreement: Each violation of this Chapter shall constitute a See, 9-491. Majority approval: Effective date: This Measure shall be effective i ARpKqyed by a ma'tority of voters and shall go into effect immediately tWon passage. Measure. In the event that this Measure shall receive a greater number of tatlarraative votes the rp avisians of this MeasurLLhall p c relating to to the regulation _dmedical gugiabis jijji—e,City �fQqstgLMesa sIiall be null and void. in each section. The provisions of the Costa Mesa Municipal Code added by. amended by, or See 9-494. Severabilitv: If is fbrAayl:q�� IL If any portion of this initiative Measure unconstitutionalinvalid or unenforceable by A cow-(ofqp shallnot affect the reinLiLling_RqrjLojjs oftbis initiative Measure that can be implemented, without the invalid Drovision, and, to this end, the provisions of this initiative Measure are severabIg. See. 9-495. Statewide regulation: This initiative Measure, and the provisions herein, shall be read consistent with any statewide revulation of medical eanngb s or recreation al mariipan that jUrqtqqlRatcd by—the-legislature or by vqter-qp�arovalln the future. See. 9-496. Special or General election: This initiative Measure shall be set for a special or repular election at the earliest tiMe_nllqwqd by law. -22- TvIrDICAL 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 now and to be inserted, All language struck through is to be deleted.) See. 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 i4egal-busifless hu—siugs­sesdcemgd illegal bystatelaw 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 ted -or ,,yaRY ail.ermea or. 40 or more-of4he bu€-notlsoditcd to ani Fa ��ll sale,- wheff4t& ex lii a ion ^ ax7t pradr tisoff site 4om the Medical Cannabis Business. An unincorporated or incorporated entity or association ofqualified patients aztdlor rima yr caregivers and/or persons with identi is tign cards, Nybo p Ovide rriq and in-kind contributionsreimbtu ements, and re�asonable rompan sation towards the aforementioned entity's actual-"xgnses far qqtlyfties ipettiding but not limited _to planting cultivation, harvesting, transporting. manufacturing, compoundingconverting, pro —es _lqt -11i reDarina, storinv, oackagina, providing and/or retail sales of medical cannabis. A medical cannabis business may provide medical carLnabis. od�ijts services anLassistance -— -pL— patierits, persons with a medical madivana identification car jd(as,sgt forth ip the MMPA), or the prima ry caregiver of such t)ersons, Medical cannabiLbusin.esses may assist with the Rcguisition whether pe J�- ipu&cL javailabIgjjold i away.yqL —23— MEDTCAL CANNABIS COWTOL ACT (1) "Medical cannabis business" shall not include, nor be interpreted to include any of the following: B b. The location of any clinic licensed pursuant to Charter I(commencing with Section 1200), a health me facility licensed pursuant to Chapter 2 or a borne health agency licensed pursuant to Chapter 8 (commencing with Section 1725). an v facilitv snecified in Division 2 of the California Health an Safety Code where: D a utialified patient or person with anidentification=d receives medical care or supportive services, or both, from the plinic, facilites hospice,or Iroma health a enc and ijthe —owner bv that qualified patient or person with an identification card, SECTION 6 - AMENDMENTS TO COSTA MESA. MUNICIPAL CODE TITLE 13, CIIAPTE R 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 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- &ILDICAL CANNABIS CONTOL ACT Section 13-30, Table 13-30 Section 13-30, Table 13-30, Row 31a -' 25- ,A4EDTCAL CANNABIS CONTOL ACT Zones LAND USES R R R�RIA C C C C T M,M P P P p p p T I p 1 2 I 2 3 P L 1 2 1 C G EP 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 PIP p p p p p Cannabis sinesses Si WgA to the of TITLE 9, CHAPTER V1 MEDICAL CANNABIS Dusa— -' 25- ,A4EDTCAL CANNABIS CONTOL ACT