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HomeMy WebLinkAbout16-15 Costa Mesa Medical Marijuana MeasureORDINANCE NO. 16-15 AN ORDINANCE OF THE PEOPLE OF THE CITY OF COSTA MESA, CALIFORNIA ENTITLED "THE CITY OF COSTA MESA MEDICAL MARIJUANA MEASURE" THE PEOPLE OF THE CITY OF COSTA MESA, CALIFORNIA DO HEREBY ORDAIN AS FOLLOWS: SECTION 1. Name. This ballot measure shall be known and may be cited as "The City of Costa Mesa Medical Marijuana Measure", and shall be referred to herein as the "Measure." SECTION 2. Purpose. The purpose of the Measure is to provide for the specific area in the City within which medical marijuana distributors, manufacturers, processors, research and development laboratories, testing laboratories and transporters can be located; to provide for City regulation of these medical marijuana businesses in a manner consistent with the statewide regulations to be adopted by the California Department of Consumer Affairs - Bureau of Medical Marijuana Regulations ("BMMR") and other state agencies, including the departments of Food and Agriculture and Public Health, pursuant to Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, as amended, collectively referred to as the Medical Marijuana Regulation and Safety Act (MMRSA); to reaffirm the existing ban on dispensaries and cultivation within the City; and to impose a gross receipts tax on all medical marijuana distributors, manufacturers, processors, testing laboratories, transporters, and research and development laboratories, as well as any other marijuana or cannabis business at a rate of 6% of gross receipts. An additional purpose of this Measure is to directly compete with the two initiatives entitled "Allow Operation of Up to Four Licensed Medical Marijuana Businesses Within the City of Costa Mesa" and "Allow Operation of Up to Eight Licensed Medical Marijuana (Cannabis) Businesses Within the City of Costa Mesa" which each propose a number of amendments to City's Municipal Code regarding medical marijuana. The Measure is intended to comprehensively regulate the same subject as, and to expressly prohibit the activities that would be allowed by, both the "Allow Operation of Up to Four Licensed Medical Marijuana Businesses Within the City of Costa Mesa" and "Allow Operation of Up to Eight Licensed Medical Marijuana (Cannabis) Businesses Within the City of Costa Mesa". If a majority of voters approve both this Measure and either or both of the "Allow Operation of Up to Four Licensed Medical Marijuana Businesses Within the City of Costa Mesa" and "Allow Operation of Up to Eight Licensed Medical Marijuana (Cannabis) Businesses Within the City of Costa Mesa", the ballot measure with the higher percentage of the vote will control. Ordinance No. 16-15 Page 1 of 19 Now, therefore, the People of the City of Costa Mesa do ordain as follows: AN ORDINANCE OF THE PEOPLE OF THE CITY OF COSTA MESA, CALIFORNIA, ADDING A NEW SECTION TO TITLE 9, CHAPTER I, ARTICLE 4 REGARDING MARIJUANA TAX AND A NEW CHAPTER VI "MEDICAL MARIJUANA BUSINESS PERMITS" TO TITLE 9; ADDING A NEW ARTICLE 21 "MEDICAL MARIJUANA DISTRIBUTING, MANUFACTURING, RESEARCH AND DEVELOPMENT AND TESTING" TO CHAPTER IX OF TITLE 13; AND AMENDING TABLE 13-30 OF CHAPTER IV, CITYWIDE LAND USE MATRIX, OF TITLE 13 OF THE COSTA MESA MUNICIPAL CODE. SECTION 3. Title 9, Chapter I, Article 4, Schedules, is hereby amended to add a new section 9-29.5, Marijuana tax, to read as follows: Sec. 9-29.5 Marijuana tax. Notwithstanding any other provision of this code, every person engaged in, managing, conducting, or carrying on any medical marijuana business defined in Chapter VI of this title, or any other medical marijuana, medical cannabis, marijuana and/or cannabis business, shall pay an annual business tax of 6% based on the gross receipts of the business. SECTION 4. Title 9, Chapter VI., entitled "Medical Marijuana Businesses and Permits" is hereby added to the Costa Mesa Municipal Code to read as follows: Title 9. LICENSES AND BUSINESS REGULATIONS Chapter VI. MEDICAL MARIJUANA BUSINESS PERMITS. Sec. 9-481. Purpose and intent. It is the purpose and intent of this chapter to regulate the distributing, manufacturing, processing, research and development, testing and transporting of cannabis and cannabis -related products in a manner which is responsible, which protects the health, safety, and welfare of the residents of Costa Mesa, and to enforce rules and regulations consistent with state law. In part to meet these objectives, a permit shall be required in order to own and/or to operate a medical marijuana business within the city. Nothing in this chapter is intended to authorize the possession, use, or provision of marijuana for purposes which violate state or federal law. The provisions of this chapter are in addition to any other permits, licenses, and approvals which may be required to conduct business in the city, and are in addition to any permits, licenses and approvals required under state law. Sec. 9-482. Legal authority. Ordinance No. 16-15 Page 2 of 19 Pursuant to Sections 5 and 7 of Article XI of the California Constitution, and the provisions of the MMRSA, the city is authorized to adopt ordinances that establish standards, requirements and regulations for local licenses and permits for cannabis and cannabis - related activity. Sec. 9-483. Marijuana business activities prohibited unless specifically authorized by this chapter. Except as specifically authorized in this chapter, the manufacture, processing, storing, laboratory testing, labeling, transporting, dispensing, distribution, delivery, or sale of marijuana or a marijuana product is expressly prohibited in the city. Sec. 9-484. Compliance with laws. It is the responsibility of the owners and operators of the medical marijuana business to ensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder. Sec. 9-485. Definitions. When used in this chapter, the following words shall have the meanings ascribed to them as set forth herein. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the California Health & Safety Code as enacted by Chapter 14017 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, "cannabis" does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health & Safety Code. "Cannabis concentrate" means manufactured cannabis that has undergone a process to concentrate the active cannabinoid ingredient, thereby increasing the product's potency. An edible medical cannabis product is not considered food, as defined by Section 109935 of the California Health & Safety Code, or a drug, as defined by Section 109925 of the California Health & Safety Code. Ordinance No. 16-15 Page 3 of 19 "Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of the California Health & Safety Code. "Chief Executive Officer" or "CEO" shall mean the Chief Executive Officer of the City or his or her designee. "Cultivation" means any activity, whether occurring indoors or outdoors, involving the propagation, planting, growing, harvesting, drying, curing, grading, and/or trimming of cannabis plants or any part thereof for any purpose, including medical marijuana. "Cultivation site" means a facility where medical cannabis is cultivated, propagated, planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities. "Delivery" means the commercial transfer of medical cannabis or medical cannabis products from a dispensary, up to an amount determined to be authorized by the State of California, or any of its departments or divisions, to anyone for any purpose. "Delivery" also includes the use by a dispensary of any technology platform owned, controlled, and/or licensed by the dispensary, or independently licensed by the State of California under the MMRSA (as the same may be amended from time -to -time), that enables anyone to arrange for or facilitate the commercial transfer by a licensed dispensary of medical cannabis or medical cannabis products. "Dispensary" means a medical marijuana business facility where cannabis, medical cannabis products, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, medical cannabis and medical cannabis products as part of a retail sale, and where the operator holds a valid medical marijuana business permit from the city authorizing the operation of a dispensary, and a valid state license as required by state law to operate a dispensary. "Dispensing" means any activity involving the retail sale of medical cannabis or medical cannabis products from a dispensary. "Distribution" means the procurement, sale, and transport of medical cannabis or medical cannabis products between entities that are currently in compliance with all applicable state and local laws and regulations pertaining to the medical marijuana business and medical marijuana activities. "Distributor" means a person holding a valid medical marijuana business permit for distribution issued by the city and is currently in compliance with all applicable state and local laws and regulations required to engage in the business of purchasing medical cannabis from a licensed cultivator, or medical cannabis products from a licensed manufacturer, for sale to a licensed dispensary. The direct and/or retail sale, distribution, Ordinance No. 16-15 Page 4 of 19 or furnishing of any cannabis or cannibis product to any consumer or end user is expressely prohibited. "Dried flower" means all dead medical cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. "Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for human consumption. An edible medical cannabis product is not considered food as defined by Section 109935 of the California Health & Safety Code or a drug as defined by Section 109925 of the California Health & Safety Code. "Live plants" means living medical cannabis flowers and plants, including seeds, sprouts, immature plants (including unrooted clones), and vegetative stage plants. "Manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured medical cannabis, as defined in this section, or medical cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages medical cannabis or medical cannabis products or labels or relabels its container, and that holds a valid medical marijuana business permit for manufacturing from the city and is currently in compliance with all applicable state and local laws and regulations pertaining to the medical marijuana business and medical marijuana. "Manufactured cannabis" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate or manufactured product intended for internal consumption or topical application. "Manufacturing site" means a location that produces, prepares, propagates, or compounds medical cannabis or medical cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid Medical marijuana business permit for manufacturing from the city and is currently in compliance with all applicable state and local laws and regulations pertaining to the medical marijuana business and medical marijuana activities. "Marijuana" means "cannabis," as that term is defined in this chapter. "Medical cannabis", "medical marijuana," "medical cannabis product" or "cannabis product" means a product containing cannabis, including, but not limited to, concentrates and extractions, intended to be sold for use by medical cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the California Health & Safety Code (as the same may be amended from time - to -time). For purposes of this Title, "medical cannabis" does not include industrial hemp as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health & Safety Code. Ordinance No. 16-15 Page 5 of 19 "Medical marijuana activity" includes manufacture, processing, laboratory testing, research and development, transporting, delivery, distribution, or sale of medical cannabis or a medical cannabis product, within the meaning of California Business and Professions Code 19300 et seq. "Medical marijuana business" means any business or operation which engages in medical marijuana activity. "Medical marijuana business permit" means a regulatory permit issued by the City pursuant to this Chapter to a medical marijuana business, and is required before any medical marijuana activity may be conducted in the City. "MMRSA" means the Medical Marijuana Regulation and Safety Act adopted by Senate Bill 643, Assembly Bill 266 and Assembly Bill 243, as amended. "Patient" or "qualified patient" shall have the same definition as California Health & Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health & Safety Code Section 11362.5. For purposes of this ordinance, a qualified patient shall include a person with an identification card as that term is defined by California Health & Safety Code Section 11362.7 et seq. "Person" means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number. "Person with an identification card" shall have the meaning given that term by California Health & Safety Code Section 11362.7. "Processing" and "processor" shall have the same meaning as manufacturing and manufacturer, respectively. "Research and development laboratory" means a facility, entity, or site in the city that performs research into and/or the development of medical cannabis or medical cannabis products, where cannabis in any amount is located on-site, and that is both of the following: 1. Accredited by an accrediting body that is independent of all other persons involved in the medical cannabis industry in the state. 2. Registered with the State Department of Public Health, and is owned and operated by a person issued a valid medical marijuana business permit for laboratory testing from the city is currently in compliance with all applicable state and local laws and regulations pertaining to the medical marijuana business and medical marijuana activities. Ordinance No. 16-15 Page 6 of 19 "South Coast Collection" or "SoCo" means all properties located at 3303 through 3323, inclusive, Hyland Avenue, in the City of Costa Mesa, commonly known as "SoCo" or "SOCO". "State license" means a permit or license issued by the State of California, or one of its departments or divisions, under MMRSA to engage in medical marijuana activity. "Topical cannabis" means a product intended for external use. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health & Safety Code. "Testing laboratory" means a facility, entity, or site in the city that offers or performs tests of medical cannabis or medical cannabis products and that is both of the following: Accredited by an accrediting body that is independent of all other persons involved in the medical cannabis industry in the state. 2. Registered with the State Department of Public Health, and is owned and operated by a person issued a valid medical marijuana business permit for laboratory testing from the city and is currently in compliance with all applicable state and local laws and regulations pertaining to the medical marijuana business and medical marijuana activities. "Transport" means the transfer of medical cannabis or medical cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting medical marijuana activity authorized by the MMRSA. "Transporter" means a person issued a state license, and a medical marijuana business permit by the city, authorizing the transport of medical cannabis or medical cannabis products in amounts authorized by the State of California, or by one of its departments or divisions under the MMRSA. Sec. 9-486. Type of authorized medical marijuana businesses permitted. (a) One of more of the following types of medical marijuana business may be permitted to operate within the City: 1. a medical marijuana distributor; 2. a medical marijuana manufacturer or processor; 3. a medical marijuana testing laboratory; 4. a medical marijuana research and development laboratory; and Ordinance No. 16-15 Page 7 of 19 5. a medical marijuana transporter. (b) Businesses permitted pursuant to this chapter shall not engage in the retail sale or distribution of cannabis, marijuana, medical cannabis, medical marijuana, medical cannabis product, cannabis product, or any other item. (c) No person may engage in any type of medical marijuana business that is not specifically authorized pursuant to this section, including but not limited to, dispensing and/or cultivating medical marijuana. Sec. 9-487. Medical marijuana business permit required to engage in medical marijuana business. No person may engage in any medical marijuana business or in any medical marijuana activity within the city including manufacture, processing, laboratory testing, transporting, dispensing, distribution, or sale of medical cannabis or a medical cannabis product unless the person (1) has a valid medical marijuana business permit from the city and (2) is currently in compliance with all applicable state and local laws and regulations pertaining to the medical marijuana business and medical marijuana business activities. Sec. 9-488. Term of permit; fees. (a) A medical marijuana business permit shall be valid for two (2) years from the date of issue, unless otherwise suspended or revoked, and shall be renewed bi-annually thereafter, provided the permittee is in compliance with the provisions of this chapter. (b) Medical marijuana business permit and application fees shall be established by resolution of the City Council. Sec. 9-489. Effect of state license suspension, revocation, or termination. Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a medical marijuana business to operate within the city, until the State of California, or its respective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a medical marijuana business, such revocation or termination shall also revoke or terminate the ability of a medical cannabis business to operate within the city. Sec. 9-490. Denial and revocation. A medical marijuana business permit may be revoked upon a hearing by the director pursuant to section 9-120 for failing to comply with the terms of the permit, the applicable provisions of this chapter, this code, state law or regulation and/or any condition of any other permit issued pursuant to this code. Ordinance No. 16-15 Page 8 of 19 Sec. 9-491. Appeals. Appeals from decisions of the CEO under this chapter shall be governed by the procedures set forth in Chapter IX of Title 2 of this code. Sec. 9-492. Prohibition on transfer of medical marijuana business permits. In the event a permit holding medical marijuana business sells or transfer the business to a new owner, the new owner must obtain a new medical marijuana business Permit prior to commencing or continuing operations. A medical marijuana business shall be deemed to have transferred to a new owner, if persons(s) or entities with controlling interest at the time the Permit was first issued cease to possess controlling ownership interest or an ownership interest of less than fifty-one (51) percent. Sec. 9-493. City business license required. Prior to commencing operations, a medical marijuana business shall obtain a city business license pursuant to Chapter I of this title. Sec. 9-494. Conditional use permit required. No medical marijuana business permit shall be issued, and no person shall conduct a medical marijuana business unless a conditional use permit has been issued therefore pursuant to the provisions of Title 13, Chapter IX, Article 21 of this code. Sec. 9-495. Operating requirements for all medical marijuana businesses permitted under this chapter. (a) Records and recordkeeping. (1) Each owner and operator of a medical marijuana business shall maintain accurate books and records, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a medical marijuana business permit issued pursuant to this Title), or at any time upon reasonable request of the City, each medical marijuana business shall file a sworn statement detailing the number of sales by the medical marijuana business during the previous twelve month period (or shorter period based upon the timing of the request), provided on a per -month basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid. (2) Each owner and operator of a medical marijuana business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the medical marijuana business, and separately of all the officers, Ordinance No. 16-15 Page 9 of 19 managers, employees, agents and volunteers currently employed or otherwise engaged by the medical marijuana business. The register required by this paragraph shall be provided to the CEO upon a reasonable request. (3) All medical marijuana businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the production or manufacturing, laboratory testing and distribution processes. (4) Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPPA), each medical marijuana business shall allow city officials to have access to the business's books, records, accounts, together with any other data or documents relevant to its permitted medical marijuana activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the City's request, unless otherwise stipulated by the City. (b) Security measures. (1) A permitted medical marijuana business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing medical cannabis or medical cannabis products, and to deter and prevent the theft of medical cannabis or medical cannabis products at the medical marijuana business. These security measures shall include: (i) establishing limited access areas accessible only to authorized medical marijuana business personnel; (ii) all medical cannabis and medical cannabis products shall be stored in a secured and locked room, safe, or vault, and shall be kept in a manner as to prevent diversion, theft, and loss; (iii) sensors shall be installed to detect entry and exit from all secure areas; (iv) having a professionally installed, maintained, and monitored alarm system; (v) any bars installed on the windows or the doors of the medical marijuana business shall be installed only on the interior of the building; Ordinance No. 16-15 Page 10 of 19 (vi) security personnel if utilized must be licensed by the State of California Bureau of Security and Investigative Services Personnel; and (vii) each medical marijuana business shall have the capability to remain secure and operational during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. (2) Each medical marijuana business shall identify a designated security representative/liaison to the city, who shall be reasonably available to meet with the CEO regarding any security related measures or and operational issues. (3) A medical marijuana business shall notify the CEO within twenty-four (24) hours after discovering any of the following: (i) significant discrepancies identified during inventory, as set forth in the city's administrative regulations; (ii) diversion, theft, loss, or any criminal activity involving the medical marijuana business or any agent or employee of the medical marijuana business; or (iii) the loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the medical marijuana business. (c) Restriction on alcohol sales. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the medical marijuana business. (d) Compliance with laws. It is the responsibility of the owners and operators of the medical marijuana business to ensure that it is, at all times, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder. Nothing in this chapter shall be construed as authorizing any actions which violate state law or local law with respect to the operation of a medical marijuana business or any site-specific, additional operating procedures or requirements which may be imposed as conditions of approval of the location of the medical marijuana business. Ordinance No. 16-15 Page 11 of 19 (e) Taxes. All medical marijuana businesses authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each medical marijuana businesses shall cooperate with the city with respect to any reasonable request to audit the medical marijuana business' books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period. (f) Insurance. Permittee shall obtain and maintain at all times during the term of the permit comprehensive general liability insurance and comprehensive automotive liability insurance protecting the permittee in an amount of not less than one million dollars ($1,000,000.00) per occurrence, combined single limit, including bodily injury and property damage and not less than one million dollars ($1,000,000.00) aggregate for each personal injury liability, products -completed operations and each accident, issued by an insurance provider admitted and authorized to do business in California and shall be rated at least A:X in A.M. Best & Company's insurance Guide. (g) Miscellaneous operating requirements. (1) Restriction on consumption. Cannabis shall not be consumed on the premises of any medical marijuana businesses or elsewhere in the city other than within private residences. (2) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a medical marijuana business permit, or on any of the vehicles owned or used as part of the medical marijuana business. No outdoor storage of cannabis or cannabis products is permitted at any time. (3) Reporting and tracking of product and of gross sales. Each medical marijuana business shall have in place a point-of-sale tracking system to track and report on all aspects of the medical marijuana business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale). The medical marijuana business shall ensure that such information is compatible with the City's record-keeping systems. The system must have the capability to produce historical transactional data for review by the CEO. (4) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations. Ordinance No. 16-15 Page 12 of 19 (5) There shall not be a physician located in or around any medical marijuana business at any time for the purpose of evaluating patients for the issuance of a medical marijuana prescription or card. (6) Signage and notices. (i) In addition to the requirements otherwise set forth in this section, business identification signage for a medical marijuana business shall conform to the requirements of this code, including, but not limited to, seeking the issuance of a city sign permit. (ii) Each entrance to a medical marijuana business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the medical marijuana business is prohibited. (iii) Business identification signage shall be limited to that needed for identification only. 79) Minors. (i) Persons under the age of twenty-one (2 1 ) years shall not be allowed on the premises of a medical marijuana business. It shall be unlawful and a violation of this chapter for any person to employ any person at or for a medical marijuana business who is not at least twenty-one (21) years of age. (ii) The entrance to the medical marijuana business shall be clearly and legibly posted with a notice that no person under the age of twenty- one (21) years of age is permitted to enter upon the premises of the medical marijuana business. (8) Odor control. Odor control devices and techniques shall be incorporated in all medical marijuana businesses to ensure that odors from marijuana are not detectable off-site. (9) Display of permit and city business license. The original copy of the medical marijuana business permit issued by the City pursuant to this chapter and the city issued business license shall be posted inside the medical marijuana business in a conspicuous location. (10) Background check. Every owner, manager, supervisor or employee of the medical marijuana business must submit fingerprints and other information deemed necessary by the CEO for a background check by the Costa Mesa Police Department to verify that person's criminal history. No person shall be issued a permit to operate a medical marijuana business who has been Ordinance No. 16-15 Page 13 of 19 convicted of a felony within the past 7 years, unless that felony has been dismissed, withdrawn, expunged or set aside pursuant to Penal Code sections 1203.4, 1000 or 1385, or who is currently on probation or parole for the sale, distribution, possession or manufacture of a controlled substance. (11) Loitering. The owner and/or operator of a medical marijuana business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. (12) Permits and other approvals. Prior to the establishment of any medical marijuana business or the operation of any such business, the person intending to establish a medical marijuana business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such medical marijuana business intends to operate. Sec. 9-497. Medical marijuana employees. (a) Any person who is an employee orwho otherwise works or volunteers within a medical marijuana business must be legally authorized to do so under applicable state law. (b) No medical marijuana business or owner thereof may employ any person who has convicted of a felony within the past 7 years, unless that felony has been dismissed, withdrawn, expunged or set aside pursuant to Penal Code sections 1203.4, 1000 or 1385, or who is currently on probation or parole for the sale, distribution, possession or manufacture of a controlled substance. (c) All employees must wear an identification badge while on the premises of the business, in a format proscribed by the CEO. Sec. 9-498. Promulgation of administrative regulations. (a) The CEO is authorized to establish any additional administrative rules, regulations and standards governing the issuance, denial or renewal of medical marijuana business permits, or concerning any other subject necessary to carry out the purposes of this chapter. (b) Regulations promulgated by the CEO shall become effective upon the date of publication. Medical marijuana businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the CEO. Ordinance No. 16-15 Page 14 of 19 Sec. 9-499. Inspection and enforcement. (a) The CEO is charged with enforcing the provisions of the Costa Mesa Municipal Code, or any provision thereof, may enter the location of a medical marijuana business at any time during the hours of operation without notice, and inspect the location of any medical marijuana business as well as any recordings and records required to be maintained pursuant to this title or under applicable provisions of State law. (b) It is unlawful for any person having responsibility for the operation of a medical marijuana business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a medical marijuana business under this chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a medical marijuana business under this chapter or under state or local law. Sec. 9-500. Violations. (a) Violations declared a public nuisance. Each and every violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance. (b) Each violation a separate offense. Each and every violation of this chapter shall constitute a. separate violation and shall be subject to all remedies and enforcement measures authorized by the Costa Mesa Municipal Code. Additionally, as a nuisance per se, any violation of this chapter shall be subject to injunctive relief, any permit issued pursuant to this chapter being deemed null and void, disgorgement and payment to the City of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The City may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the medical marijuana business or persons related to, or associated with, the medical marijuana activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the CEO, or the Chief of Police, may take immediate action to temporarily suspend a medical marijuana business permit issued by the City, pending a hearing before the City Council. (c) Criminal penalties. Each and every violation of the provisions of this chapter may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the county jail for a period of not more than twelve (12) Ordinance No. 16-15 Page 15 of 19 months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. (d) Remedies cumulative and not exclusive. The remedies provided herein are not to be construed as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law. SECTION 5. Title 13, Chapter IX, Article 21 is hereby added to read as follows: Article 21. Medical Marijuana Distributing, Manufacturing, Processing, Research and Development, Testing and Transporting Locations. Sec. 13-200.90 Purpose. The purpose of this article is to regulate the location of medical marijuana distributing facilities, manufacturing sites, processing sites, research and developing laboratories, testing laboratories and transport facilities in order to promote the health, safety, morals and general welfare of the residents and the businesses within the city by maintaining local control over the ability to authorize and regulate the location of medical marijuana businesses. Sec. 13-200.91 Applicability. (a) Nothing in this article is intended, nor shall it be construed, to burden any defense to criminal prosecution under the Compassionate Use Act of 1996. (b) All the provisions of this article shall apply to all property, public and private, within the City. (c) All the provisions of this article shall apply indoors and outdoors. (d) Unless otherwise provided herein, the terms used in this article shall have the meaning ascribed to them in Title 9, Chapter VI of this code. Sec. 13-200.91 Medical marijuana distributing facilities, manufacturing sites, processing sites, research and developing laboratories, testing laboratories and transport facilities. (a) Medical marijuana distribution, manufacturing, processing, transporting, research and development and testing is prohibited in all zone districts within the city, except for those portions of the Manufacturing Park (MP) and Planned Development Industrial (PDI) zones that are located both north of South Coast Drive and west of Harbor Blvd, excluding any portion of the South Coast Collection. (b) No use permitted under this section may be conducted on any lot that is within 500 feet of Moon Park. Ordinance No. 16-15 Page 16 of 19 (c) A conditional use permit shall be required and may be issued to allow the location of any business engaged in the distribution, manufacturing, processing, researching and developing, testing or transporting of medical marijuana in the MP or PDI zones pursuant to subsection (a), subject to the following conditions: (i) the requirements of Chapter III of this title have been met; (ii) the findings for granting a conditional use permit in accordance with section 13-29(g) are met; (iii) the applicant obtains a medical marijuana business license pursuant to Chapter VI of Title 9 of this code; and (iv) the use is conducted in compliance with all applicable state and local laws. (d) No person shall engage in any use set forth in this article unless that use is specifically authorized by Chapter VI of Title 9 of this code. Sec. 13-200.92 Declaration of public nuisance. Any use, structure, or property that is altered, enlarged, erected, established, maintained, moved, or operated contrary to the provisions of this article, is hereby declared to be unlawful and a public nuisance and may be abated by the city through civil and/or administrative proceedings by means of a restraining order, preliminary or permanent injunction, or in any other manner provided by law for the abatement of such nuisances. Sec. 13-200.93 Violations. Violations of this article shall be punishable pursuant to the provisions of section 13-16. SECTION 5. Table 13-30 of Chapter IV (Citywide Land Use Matrix) of Title 13 (Planning, Zoning and Development) is hereby amended to modify row 128 and add rows 31 c, 31 d, 31 e and 31 f as follows: Section 13-30, Table 13-30, Row 31 c., 31 d., 31 e., 31 f and 128. Ordinance No. 16-15 Page 17 of 19 9 Subject to the location restrictions of Section 13-200.91 and prohibited at the SoCo property, 3303 through 3323 Hyland Ave. SECTION 6. Rejection of the Initiative to "Allow Operation of Up to Four Licensed Medical Marijuana Businesses Within the City of Costa Mesa" and the Initiative to "Allow Operation of Up to Eight Licensed Medical Marijuana (Cannabis) Businesses Within the City of Costa Mesa". By this Measure, the People of the City of Costa Mesa hereby reject each and every change and addition to the Costa Mesa Municipal Code proposed by the initiative entitled "Allow Operation of Up to Four Licensed Medical Marijuana Businesses Within the City of Costa Mesa" and by the initiative entitled "Allow Operation of Up to Eight Licensed Medical Marijuana (Cannabis) Businesses Within the City of Costa Mesa". SECTION 7. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 8. Future Changes. Any future changes or amendments to this ordinance, including any future changes or amendments to any Municipal Code section affected by the Measure or a reduction in the tax imposed by this Measure, may occur in the manner set forth in the Government Code and the City's Municipal Code, and shall not require a vote of the people, except that any future change or amendment to this ordinance related to dispensaries and/or Ordinance No. 16-15 Page 18 of 19 ZONES RR ACCCCTMMDDD P P P P R P P I I LAND USES 1MH3PL121C'GP RRRNDD&RP DD SI LMH CGI'R'S1 D'D'D' M , 31c. Cannabis and/or marijuana C9 C9 distributer 31d. Cannabis and/or marijuana C9 C9 manufacturer or processor 31 e. Cannabis and/or marijuana C 9 C 9 transporter 31f. Cannabis and/or marijuana C9 C9 research and development and/or testinglaboratories 128 Research and development laboratories — other than cannabis C C C P CC P P P and/or marijuana testing laboratories 9 Subject to the location restrictions of Section 13-200.91 and prohibited at the SoCo property, 3303 through 3323 Hyland Ave. SECTION 6. Rejection of the Initiative to "Allow Operation of Up to Four Licensed Medical Marijuana Businesses Within the City of Costa Mesa" and the Initiative to "Allow Operation of Up to Eight Licensed Medical Marijuana (Cannabis) Businesses Within the City of Costa Mesa". By this Measure, the People of the City of Costa Mesa hereby reject each and every change and addition to the Costa Mesa Municipal Code proposed by the initiative entitled "Allow Operation of Up to Four Licensed Medical Marijuana Businesses Within the City of Costa Mesa" and by the initiative entitled "Allow Operation of Up to Eight Licensed Medical Marijuana (Cannabis) Businesses Within the City of Costa Mesa". SECTION 7. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 8. Future Changes. Any future changes or amendments to this ordinance, including any future changes or amendments to any Municipal Code section affected by the Measure or a reduction in the tax imposed by this Measure, may occur in the manner set forth in the Government Code and the City's Municipal Code, and shall not require a vote of the people, except that any future change or amendment to this ordinance related to dispensaries and/or Ordinance No. 16-15 Page 18 of 19 cultivation, or the specific area within the City where medical marijuana businesses may be located, shall require a vote of the people. SECTION 9. Severability. If any section, subsection, sentence, clause, or phrase 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 and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional, without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 10. Effective Date. This ordinance shall take effect according to law ten days after certification of the election at which it is adopted. SECTION 11. Certification/Summary. Following the City Clerk's certification that the citizens of Costa Mesa have approved this Ordinance, the Mayor shall sign this Ordinance and the City Clerk shall cause the same to be entered in the book of original ordinances of said City; and shall cause the same, or a summary thereof, to be published as required by law. I hereby certify that the Ordinance cited as "The City of Costa Mesa Medical Marijuana Measure" was PASSED, APPROVED, AND ADOPTED by the people of the City of Costa Mesa on this 8th day of November, 2016. CITY Off COSTA MESA KATRI9 FO -WY, MAYOR ATT BRENDA GREM, CITY CLERK APPROVED AS_TO FORM TOM DUARTE, CITY ATTORNEY Ordinance No. 16-15 Page 19 of 19