HomeMy WebLinkAbout18-04 - Adopting Code Amendment CO-17-07 (Measure X)ORDINANCE NO. 18-04
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA
AMENDING ARTICLE 5 (ADMINISTRATION, APPLICATION AND PROCEDURES)
OF CHAPTER I (BUSINESS TAX) AND CHAPTER VI (MEDICAL MARIJUANA
BUSINESS PERMITS) OF TITLE 9 (LICENSES AND BUSINESS REGULATIONS);
CHAPTER IV (CITYWIDE LAND USE MATRIX) AND ARTICLE 21 (MEDICAL
MARIJUANA DISTRIBUTING, MANUFACTURING, PROCESSING, RESEARCH AND
DEVELOPMENT, TESTING LABORATORIES AND TRANSPORTING LOCATIONS)
OF CHAPTER IX (SPECIAL LAND USE REGULATIONS) OF TITLE 13 (PLANNING
ZONING AND DEVELOPMENT), RELATING TO AMENDMENTS TO VOTER
APPROVED ORDINANCE 16-15 (MEASURE X, THE COSTA MESA MEDICAL
MARIJUANA MEASURE)
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS
FOLLOWS:
WHEREAS, the City of Costa Mesa, pursuant to its police power, may adopt regulations
to protect the health, safety and welfare of the public, Cal. Const. art. XI, § 7, Cal, Govt.
Code § 37100, and thereby is authorized to declare what use and condition constitutes a
public nuisance; and
WHEREAS, on November 8, 2016 the electorate of the City of Costa Mesa voted on
Measure X, and approved the Costa Mesa Medical Marijuana Measure. Measure X sets
forth the specific area in the City within which medical marijuana distributors,
manufacturers, processors, research and development laboratories, testing laboratories
and transporters can be located; provides 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
and other state agencies, including the departments of Food and Agriculture and Public
Health; reaffirms the existing ban on dispensaries and cultivation within the City; and
imposes 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; and
WHEREAS, at the same election, on November 8, 2016, the electorate of the State of
California voted on Proposition 64 ("Prop 64"), and approved the Adult Use of Marijuana
Act ("AUMA"), to be codified in California Health and Safety Code at various sections and
in California Business and Professions Code at various sections. The AUMA allows
adults 21 and over to use, possess, and cultivate limited amounts of marijuana,
establishes a state licensing and regulatory scheme for marijuana businesses serving the
recreational market; and will expressly allow local jurisdictions to prohibit outdoor
cultivation of marijuana for personal use, to regulate indoor cultivation of marijuana for
personal use, and to prohibit all non-medical and recreational marijuana businesses from
locating and operating within their jurisdictions; and
Ordinance No. 18-04 Page 1 of 14
WHEREAS, at the time of the adoption of Measure X, non-medical adult use
(recreational) marijuana was not legal under state law; and
WHEREAS, on June 27, 2017 the state Legislature passed and the Governor signed into
law the Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA),
which creates one regulatory system for both medicinal and adult -use (recreational)
cannabis. The cannabis licensing authorities have begun to draft emergency regulations
based on the new law for the commercial medicinal and adult -use (recreational)
cannabis industries; and
WHEREAS, the renamed State of California Bureau of Cannabis Control has now begun
to issue regulations for the implementation of Prop 64 and MAUCRSA, 16 California
Code of Regulations, Division 42; and
WHEREAS, it is the intent of this ordinance to allow and permit adult use marijuana
products to be manufactured, distributed, transported, tested and developed in the same
manner and areas as medical marijuana uses pursuant to Measure X, to maintain the
existing bans on retail sales of marijuana and to otherwise revise provisions of the
Municipal Code to achieve consistency with state law; and
WHEREAS, Measure X provides that any future changes or amendments to Ordinance
16-15, including any future changes or amendments 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 Ordinacne
15-16 related to dispensaries and/or cultivation or the specific area whithin the City
where medical marijuana businesses may be located shall require a vote of the people;
and
WHEREAS, the City of Costa Mesa, pursuant to the provisions of the California
Environmental Quality Act ("CEQA") (California Public Resources Code Sections 21000
et seq.) and State CEQA guidelines (Sections 15000 et seq.) has determined that the
Ordinance is exempt pursuant to Section 15061(b)(3) of Title 14 the California Code of
Regulations; and
WHEREAS, the City Council finds that the provisions of this Ordinance are consistent
with the City of Costa Mesa's General Plan; and
WHEREAS, all legal prerequisites prior to the adoption of this ordinance have occurred.
THE COSTA MESA CITY COUNCIL DOES HEREBY ORDAIN AS FOLLOWS:
Section 1: Title 9, Chapter I, Section 9-29.5 of the Costa Mesa Municipal Code, is
hereby amended to read as follows:
9-29.5. Marijuana tax.
Notwithstanding any other provision of this Code, every person engaged in, managing,
conducting, or carrying on any marijuana business defined in Chapter VI of this title, or
Ordinance No. 18-04 Page 2 of 14
any other marijuana and/or cannabis business, shall pay an annual business tax of six
(6) percent based on the gross receipts of the business.
Section 2: Title 9, Chapter VI of the Costa Mesa Municipal Code, is hereby amended
to read as follows:
CHAPTER VI. MARIJUANA BUSINESS PERMITS.
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 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.
9-482. Legal authority.
Pursuant to Sections 5 and 7 of Article XI of the California Constitution and the
provisions of Division 10 of the Business & Professions Code, the city is authorized to
adopt ordinances that establish standards, requirements and regulations for local
licenses and permits for cannabis and cannabis -related activity.
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, furnishing, distribution, delivery, or
sale of marijuana or a marijuana product is expressly prohibited in the city.
9-484. Compliance with laws.
It is the responsibility of the owners and operators of the 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.
9-485. Definitions.
Unless otherwise defined in this chapter or in chapter I of Title 13, the words used in this
chapter shall have the same definitions ascribed to them in Division 10 of the Business &
Professions Code. 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.
Caregiver or primary caregiver has the same meaning as that term is defined in section
11362.7 of the California Health and Safety Code.
City manager shall mean the city manager of the city or his/her designee.
Dispensing means any activity involving the retail sale of cannabis or cannabis products
from a dispensary.
Ordinance No. 18-04 Page 3 of 14
Distributor means a person or entity that engages in distribution. The direct and/or retail
sale, distribution, or furnishing of any cannabis or cannabis product to any consumer or
end user is expressly prohibited.
Manufacturing site means a location where cannabis products are manufactured.
Marijuana means "cannabis," as that term is defined in this chapter.
Marijuana activity includes manufacture, processing, laboratory testing, research and
development, transporting, delivery, dispensing, distribution, furnishing, giving away or
sale or any other activity involving cannabis or a cannabis product.
Marijuana business means any business or operation which engages in any marijuana
activity.
Marijuana business permit means a regulatory permit issued by the city pursuant to this
chapter to a marijuana business, and is required before any marijuana activity may be
conducted in the city.
Patient or qualified patient shall have the same definition as California Health and 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 and Safety Code section 11362.5. For
purposes of this chapter, a qualified patient shall include a person with an identification
card as that term is defined by California Health and Safety Code section 11362.7 et seq.
Person with an identification card shall have the meaning given that term by California
Health and 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 cannabis or 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 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 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 marijuana business and marijuana activities.
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 means the State of California, including any of its departments, divisions, and/or
bureaus.
State license means a permit or license issued by the state to engage in marijuana
activity.
9-486. Type of authorized marijuana businesses permitted.
(a) One or more of the following types of marijuana business may be permitted
to operate within the city:
(1) marijuana distributor (includes license classification type 11);
(2) marijuana manufacturer (includes license classification type 6 and 7);
Ordinance No. 18-04 Page 4 of 14
(3) marijuana testing laboratory (includes license classification type 8); and
(4) marijuana research and development laboratory.
(b) Businesses permitted pursuant to this chapter shall not engage in the retail
sale or distribution of cannabis, marijuana, cannabis product, marijuana product, or
any other item.
(c) No person may engage in any type of marijuana business that is not
specifically authorized pursuant to this section, including, but not limited to,
dispensing and/or cultivating marijuana.
9-487. Marijuana business permit required to engage in a marijuana business.
No person may engage in any marijuana business or in any marijuana activity within the
city including manufacturing, processing, laboratory testing, transporting, dispensing,
distribution, or sale of cannabis or a cannabis product unless the person (1) has a valid
marijuana business permit from the city that authorizes the specific business and activity
and (2) is currently in compliance with all applicable state and local laws and regulations
pertaining to the marijuana business and marijuana activity, including, but not limited to,
having a currently valid license therefore issued by the state.
9-488. Term of permit—Fees.
(a) A 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) Marijuana business permit and application fees shall be established by
resolution of the city council.
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 marijuana business to operate within
the city, until the State of California, or its respective departments or divisions, 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 marijuana business, such revocation or
termination shall also revoke or terminate the ability of a business permitted pursuant to
this chapter to operate within the city.
9-490. Denial and revocation.
A 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.
9-491. Appeals.
Appeals from decisions of the city manager under this chapter shall be governed by the
procedures set forth in Chapter IX of Title 2 of this Code.
9-492. Prohibition on transfer of marijuana business permits.
In the event a permit holding marijuana business sells or transfer the business to a new
owner, the new owner must obtain a new marijuana business permit prior to commencing
or continuing operations. A marijuana business shall be deemed to have transferred to a
new owner within the meaning of this section if person(s) or entities with controlling
Ordinance No. 18-04 Page 5 of 14
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.
9-493. City business license required.
Prior to commencing operations, a marijuana business shall obtain a city business
license pursuant to Chapter I of this title.
9-494. Conditional use permit required.
No marijuana business permit shall be issued, and no person shall conduct a 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.
9-495. Operating requirements for all marijuana businesses permitted under this
chapter.
(a) Records and recordkeeping.
(1) Each owner and operator of a 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 marijuana business permit issued pursuant to this
title), or at any time upon reasonable request of the city, each marijuana
business shall file a sworn statement detailing the number of sales by the
marijuana business during the previous (12) twelve (12) 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 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
marijuana business, and separately of all the officers, managers, employees,
agents and volunteers currently employed or otherwise engaged by the
marijuana business. The register required by this paragraph shall be provided to
the city manager upon a reasonable request.
(3) All 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 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 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 marijuana business shall implement sufficient security
measures to deter and prevent the unauthorized entrance into areas containing
cannabis or cannabis products, and to deter and prevent the theft of cannabis
Ordinance No. 18-04 Page 6 of 14
or cannabis products at the marijuana business. These security measures shall
include:
a. Establishing limited access areas accessible only to authorized
marijuana business personnel;
b. All cannabis and 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;
C. Sensors shall be installed to detect entry and exit from all secure
areas;
d. Having a professionally installed, maintained, and monitored alarm
system;
e. Any bars installed on the windows or the doors of the marijuana
business shall be installed only on the interior of the building;
f. Security personnel if utilized must be licensed by the State of
California Bureau of Security and Investigative Services Personnel; and
g. Each 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 marijuana business shall identify a designated security
representative/liaison to the city, who shall be reasonably available to meet with
the city manager regarding any security related measures or and operational
issues.
(3) A marijuana business shall notify the city manager within twenty-four (24)
hours after discovering any of the following:
a. Significant discrepancies identified during inventory, as set forth in
the city's administrative regulations;
b. Diversion, theft, loss, or any criminal activity involving the marijuana
business or any agent or employee of the marijuana business; or
C. The loss or unauthorized alteration of records related to cannabis,
registering qualifying patients, primary caregivers, or employees or agents
of the 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
marijuana business.
(d) Compliance with laws. It is the responsibility of the owners and operators of
the 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 marijuana
business or any site-specific, additional operating procedures or requirements which
may be imposed as conditions of approval of the location of the marijuana business.
Ordinance No. 18-04 Page 7 of 14
(e) Taxes. All 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
marijuana business shall cooperate with the city with respect to any reasonable
request to audit the marijuana business's 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 rated at least A -:VIII
in A.M. Best and Company's Insurance Guide and either admitted and authorized to
do business in California or is listed on the California Department of Insurance's List
of Approved Surplus Line Insurers.
(g) Miscellaneous operating requirements.
(1) Restriction on consumption. Cannabis shall not be consumed on the
premises of any 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
marijuana business permit, or on any of the vehicles owned or used as part of
the 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 marijuana
business shall have in place a point-of-sale tracking system to track and report
on all aspects of the marijuana business including, but not limited to, such
matters as cannabis tracking, inventory data, and gross sales (by weight and by
sale). The 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 city manager.
(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.
(5) There shall not be a physician located in or around any marijuana business
at any time for the purpose of evaluating patients for the issuance of a
marijuana prescription or card.
(6) Signage and notices.
a. In addition to the requirements otherwise set forth in this section,
business identification signage for a marijuana business shall conform to
the requirements of this code, including, but not limited to, seeking the
issuance of a city sign permit.
Ordinance No. 18-04 Page 8 of 14
b. Each entrance to a 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
marijuana business is prohibited.
C. Business identification signage shall be limited to that needed for
identification only.
(7) Minors.
a. Persons under the age of twenty-one (21) years shall not be allowed
on the premises of a marijuana business. It shall be unlawful and a
violation of this chapter for any person to employ any person at or for a
marijuana business who is not at least twenty-one (21) years of age.
b. The entrance to the 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 marijuana business.
(8) Odor control. Odor control devices and techniques shall be incorporated in
all 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
marijuana business permit issued by the city pursuant to this chapter and the
city -issued business license shall be posted inside the marijuana business in a
conspicuous location.
(10) Background check. Every owner, manager, supervisor or employee of the
marijuana business must submit fingerprints and other information deemed
necessary by the city manager 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 marijuana business who has been convicted of a
felony within the past seven (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 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 marijuana
business or the operation of any such business, the person intending to
establish a 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 marijuana business
intends to operate.
9-496. Marijuana employees.
(a) Any person who is an employee or who otherwise works or volunteers
within a marijuana business must be legally authorized to do so under applicable
state law.
Ordinance No. 18-04 Page 9 of 14
(b) No marijuana business or owner thereof may employ any person who has
convicted of a felony within the past seven (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 city manager.
9-497. Promulgation of administrative regulations.
(a) The city manager is authorized to establish any additional administrative
rules, regulations and standards governing the issuance, denial or renewal of
marijuana business permits, or concerning any other subject necessary to carry out
the purposes of this chapter.
(b) Regulations promulgated by the city manager shall become effective upon
the date of publication. 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 city manager.
9-498. Inspection and enforcement.
(a) The city manager is charged with enforcing the provisions of the Costa
Mesa Municipal Code, or any provision thereof, and may enter the location of a
marijuana business at any time during the hours of operation without notice, and
inspect the location of any 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
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 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
marijuana business under this chapter or under state or local law.
9-499. 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 marijuana business or persons related to, or associated with, the
marijuana activity. Additionally, when there is determined to be an imminent threat to
public health, safety or welfare, the city manager, or the chief of police, may take
Ordinance No. 18-04 Page 10 of 14
immediate action to temporarily suspend a 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 ($1,000.00) or imprisonment in the county
jail for a period of not more than twelve (12) 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 3: Title 13, Chapter IV, Table 13-30 (Citywide Land Use Matrix) is hereby
amended to modify rows 31 e as follows:
Section 13-30. Table 13-30. Row. 31 a.. 31 c.. 31 d.. 31 e.
Ordinance No. 18-04 Page 11 of 14
R2-
R2-
Cl-
PDR-
PDR-
PDR-
PDR-
I&R-
I&RM
LAND USES
R1
MD
HD
R3AP
CL
C1
C2
S1
TC'
MG
MP
LD1
MD'
HD1
NCM1
PDC'
PDI'
I&RI
S1
LTI
P
31 a. Medical
marijuana
dispensary
31 b.
Marijuana
and/or
medical
marijuana
cultivation
31 c.
Cannabis
and/or
Cs
C9
marijuana
distributer
31 d.
Cannabis
and/or
Cs
Cs
marijuana
manufacturer
or processor
31 e.
Cannabis
and/or
marijuana
retail sales
Ordinance No. 18-04 Page 11 of 14
31f.
Cannabis
and/or
marijuana
research and
C9
C9
development
and/or
testing
laboratories
9 Prohibited at the SoCo property, 3303 through 3323 Hyland Ave.
Section 4: Title 13, Chapter IX, Article 21 of the Costa Mesa Municipal Code, is
hereby amended to read as follows:
ARTICLE 21. LOCATION OF MARIJUANA DISTRIBUTING, MANUFACTURING,
RESEARCH AND DEVELOPMENT AND TESTING LABORATORIES
13-200.90. Purpose.
The purpose of this article is to regulate the location of marijuana distributing facilities,
manufacturing sites, research and developing laboratories and testing laboratories 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 marijuana businesses.
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.
13-200.92. Marijuana distributing facilities, manufacturing sites, research and
development laboratories, and testing laboratories.
(a) Marijuana distribution, manufacturing, 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 Boulevard,
excluding any portion of the South Coast Collection.
(b) A conditional use permit shall be required and may be issued to allow the
location of any business engaged in the distribution, manufacturing, researching and
developing, or testing of marijuana in the MP or PDI zones pursuant to subsection
(a) of this section, subject to the following conditions:
(1) The requirements of Chapter III of this title have been met;
(2) The findings for granting a conditional use permit in accordance with
section 13-29(g) are met;
(3) The applicant obtains a marijuana business license pursuant to Chapter VI
of Title 9 of this Code; and
Ordinance No. 18-04 Page 12 of 14
(4) The use is conducted in compliance with all applicable state and local laws.
(c) 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.
13-200.93. 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.
13-200.94. Violations.
Violations of this article shall be punishable pursuant to the provisions of section 13-16.
Section 5: Environmental Compliance. This Ordinance has been reviewed for
compliance with the California Environmental Quality Act (CEQA), the CEQA guidelines,
and the City's environmental procedures, and has been found to be exempt pursuant to
Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, in that the City Council
hereby finds that it can be seen with certainty that there is no possibility that the passage
of this Ordinance will have a significant effect on the environment.
Section 6: 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 7: Severability. If any chapter, article, section, subsection, subdivision,
sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to
any person, 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
portion of this Ordinance or its application to other persons. The City Council hereby
declares that it would have adopted this Ordinance and each chapter, article, section,
subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective
of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases,
or portions of the application thereof to any person, be declared invalid or
unconstitutional. No portion of this Ordinance shall supersede any local, state, or federal
law, regulation, or codes dealing with life safety factors.
Section 8: Effective Date. This Ordinance shall take effect and be in full force thirty
(30) days from and after the passage thereof, and prior to the expiration of fifteen (15)
days from its passage shall be published once in the ORANGE COAST DAILY PILOT, a
newspaper of general circulation, printed and published in the City of Costa Mesa or, in
the alternative, the City Clerk may cause to be published a summary of this Ordinance
and a certified copy of the text of this Ordinance shall be posted in the office of the City
Clerk five (5) days prior to the date of adoption of this Ordinance, and within fifteen (15)
days after adoption, the City Clerk shall cause to be published the aforementioned
summary and shall post in the office of the City Clerk a certified copy of this Ordinance
together with the names and member of the City Council voting for and against the
same.
Ordinance No. 18-04 Page 13 of 14
APPROVED AND ADOPTED on this 31d day of April, 2018.
Sandra L. Genis, Mayor
ATTEST:
Brenda Gre n, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF COSTA MESA )
ss
APPROVED -AS TO FORM:
Thomas DubrW, City'Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing Ordinance No. 18-04 was duly introduced for first reading
at a regular meeting of the City Council held on the 20th day of March, 2018, and that
thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City
Council held on the 3rd day of April, 2018, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: Foley, Righeimer, Mansoor, and Genis
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Stephens
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 4'h day of April, 2018.
Brenda Gree , City Clerk
Ordinance No. 18-04 Page 14 of 14