HomeMy WebLinkAbout16-52 - Consolidate General Municipal Election and Statewide General Election on Nov. 8, 2016RESOLUTION NO. 16-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, REQUESTING THE ORANGE COUNTY BOARD OF SUPERVISORS
TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD NOVEMBER
8, 2016, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE
PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE
WHEREAS, the City Council of the City of Costa Mesa called a General Municipal
Election to be held on November 8, 2016 for the purpose of submitting a proposed
ordinance to the voters of the City of Costa Mesa for their consideration; and
WHEREAS, the City Council of the City of Costa Mesa is submitting to the voters
of the City of Costa Mesa a question relating to the adoption of a proposed ordinance;
and
WHEREAS, it is desirable that the general municipal election be consolidated with
the Statewide General election to be held on the same date and that within the city, the
precincts, polling places, and election officers of the two elections be the same, and that
the Registrar of Voters of the County of Orange canvass the returns of the General
Municipal Election and that the election be held in all respects as if there were only one
election;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. That pursuant to the requirements of Section 10403 of the Elections
Code, the Board of Supervisors of the County of Orange is hereby requested to consent
and agree to the consolidation of a General Municipal Election with the Statewide
General Election on Tuesday, November 8, 2016, for the purpose of submitting to the
voters of the City of Costa Mesa a question relating to the adoption of a proposed
ordinance.
Resolution No. 16-52 Page 1
SECTION 2. That the following measure is to appear on the ballot as follows:
Measure _: The City of Costa Mesa Medical Marijuana
Measure
Response
Vote
Shall the ordinance, to allow medical marijuana
manufacturing, processing, wholesale distribution and
Yes
transporting, and research, development and testing, in
manufacturing and industrial zones north of South Coast Dr.
No
and west of Harbor Blvd., subject to conditional use permit
and business permits, including requirements for background
checks, premises security, business records, that is subject
to amendment by City Council, and that levies an annual 6%
gross receipts tax (estimated annual revenue $48,000 -
$912,000), be adopted?
SECTION 3. That the proposed complete text of the ordinance to be submitted to
the voters is attached as Exhibit A.
SECTION 4. That the vote requirement for the measures to pass is a majority
(50% +1) of the votes cast.
SECTION 5. That the County of Orange Registrar of Voters is authorized to
canvass the returns of the General Municipal Election. The election shall be held in all
respects as if there were only one election, and only one form of ballot shall be used.
The election will be held and conducted in accordance with the provisions of law
regulating the statewide election or special election.
SECTION 6. That the Board of Supervisors is requested to issue instructions to
the county election department to take any and all steps necessary to hold the
consolidated election.
SECTION 7. That the City of Costa Mesa recognizes that additional costs will be
incurred by the County by reason of this consolidation and agrees to reimburse the
County for any costs.
SECTION 8. That the City Clerk is directed to file a certified copy of this
Resolution with the Board of Supervisors and the county election department of the
County of Orange.
Resolution No. 16-52 Page 2
SECTION 9. That the City Clerk shall certify to the passage and adoption of this
resolution.
PASSED AND ADOPTED this 5th day of July, 2016.
ATTEST:
rner, roiayur rro i ern
Q�-,e�
Brenda Green, City Clerk
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. 16-52 was duly passed and adopted by the City
Council of the City of Costa Mesa at a regular meeting held on the 5th day of July, 2016,
by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: Genis, Monahan, Righeimer, and Mensinger
NOES: COUNCIL MEMBERS: Foley
ABSENT: COUNCIL MEMBERS: None
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 6th day of July, 2016.
BRENDA GREEN, CITY CLERK
Attachments:
1. Exhibit A — Proposed Ordinance: The City of Costa Mesa Medical Marijuana
Measure
Resolution No. 16-52 Page 3
COUNCIL -SPONSORED INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO
THE VOTERS
The City Council for the City of Costa Mesa submits the following measure to the
voters of the City for approval and enactment:
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.
City of Costa Mesa
Medical Marijuana Measure 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.
City of Costa Mesa
Medical Marijuana Measure 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.
City of Costa Mesa
Medical Marijuana Measure 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,
City of Costa Mesa
Medical Marijuana Measure 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.
City of Costa Mesa
Medical Marijuana Measure 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:
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.
City of Costa Mesa
Medical Marijuana Measure 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:
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 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
City of Costa Mesa
Medical Marijuana Measure 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
City of Costa Mesa
Medical Marijuana Measure Page 8 of 19
provisions of this chapter, this code, state law or regulation and/or any condition of any
other permit issued pursuant to this code.
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.
City of Costa Mesa
Medical Marijuana Measure Page 9 of 19
(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,
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;
City of Costa Mesa
Medical Marijuana Measure Page 10 of 19
(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;
(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.
(1) 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.
(2) 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.
City of Costa Mesa
Medical Marijuana Measure 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.
City of Costa Mesa
Medical Marijuana Measure 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.
(7) 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.
(9) Minors.
(i) Persons under the age of twenty-one (21) 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.
(10) 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.
(11) 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.
(12) 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
City of Costa Mesa
Medical Marijuana Measure Page 13 of 19
be issued a permit to operate a medical marijuana business who has been
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.
(13) 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.
(14) 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 or who 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.
(c) 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.
Sec. 9-499. Inspection and enforcement.
City of Costa Mesa
Medical Marijuana Measure Page 14 of 19
(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)
months, or by both such fine and imprisonment. Each day a violation is committed or
permitted to continue shall constitute a separate offense.
City of Costa Mesa
Medical Marijuana Measure Page 15 of 19
(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.
City of Costa Mesa
Medical Marijuana Measure 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 31f as follows:
Section 13-30, Table 13-30, Row 31 c., 31 d., 31 e., 31f and 128.
City of Costa Mesa
Medical Marijuana Measure 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
City of Costa Mesa
Medical Marijuana Measure Page 18 of 19
ONES
RR
22
CCCITMMRRRRDD&&P
C
P
DDDDPP
P
P
P
I
I
LAND USES
1MH3PL12SC
GP
NC'PR,R
LMH
DD
DD
D
C
S'
M'
31 c. Cannabis and/or marijuana
C9
C9
distributer
31d. Cannabis and/or marijuana
C9
C9
manufacturer or processor
31e. Cannabis and/or marijuana
C9
C9
transporter
31f. Cannabis and/or marijuana
C9
C9
research and development and/or testing laboratories
128 Research and development
laboratories — other than cannabis
C
C C
P C
C
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
City of Costa Mesa
Medical Marijuana Measure 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.
City of Costa Mesa
Medical Marijuana Measure Page 19 of 19