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HomeMy WebLinkAboutZOA 17-27 Mayors & Council Members Advanced Leadership Workshops Cannabis Regulation : Best Practices For Your City Friday, June 21, 2019 9:00am — 3:00pm Newport Beach, California L� OFLEA�GUEO RNIA CITIES CANNABIS REGULATION : BEST PRACTICES FOR YOUR CITY Mayors and Council Members Executive Forum Friday, June 21, 2019 9:00 AM to 3:00 PM Newport Beach, California FCAGUE® CITIES Mission To expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians. Vision To be recognized and respected as the leading advocate for the common interests of California's cities. Connect with the League of California Cities Follow us on Twitter: @CaCities Like us on Facebook: @leagueofcacities Connect with us on YouTube: @leagueofcacities y Sign up for our newsletter at www.cacities.org CALIFORNIA 1: U ® CITIES Thank You! We would like to thank everyone who contributed to this workshop: Cody Bass, Councilmember, South Lake Tahoe Matthew Bronson, City Manager, Grover Beach John Leonard, Community and Legislative Affairs Manager, West Hollywood Jennifer Mizrahi, City Attorney, Desert Hot Springs, Quintanilla and Associates Brad Rowe, Cannabis Compliance Practice Leader, MuniServices/Avenu Jackie Rocco, Business Development Manager, West Hollywood Lauren Sugayan, Community and Marketing Manager, Union City Aly Zimmermann, Assistant City Manager, Vista And, Institute for Local Government! 2 l LE AG U F E R ,IA ` CITIES Agenda 9:00 a.m. Welcome / Introductions, Agenda Review 9:15 a.m. Building the Foundation: Overview & History of Cannabis in California 9:30 a.m. Ordinance Creation 10:45 a.m. Break 11 :00 a.m. Taxation and Economic Development 12:00 p.m. Networking Lunch 12:30 p.m. Land Use 1:45 p.m. Tactics for Good Neighbors 2:45 p.m. Closing & Adjournment 3 Introduction What brought you here today? Is there a specific challenge or issue among your council or in your • 4 About Today's Workshop Workshop Description: With the passage of Prop. 64, California cities have the choice and opportunity to authorize and establish local regulatory structures on commercial cannabis. This interactive workshop will help you gain insight toward uncovering best practices, addressing on-going implementation challenges and exploring the various factors that may be deterring authorization in certain cities. Today's workshop will cover a variety of cannabis topics, including: Ordinance Creation, Land Use, Taxation and Economic Development, and Tactics for Good Neighbors. Workshop Objectives: • Share best practices on commercial cannabis authorization • Provide guidance and insight to non-authorizing cities on how to deal with such challenges, including: dealing with illicit activity, establishing a tax structure, and procuring resources and tools for enforcement. • Explore how some peer cities have been able to overcome political pushback and gain community buy-in for the implementation of retail cannabis as well as other types of commercial authorization. What questions • • I have today? 5 Building the Foundation : Overview & History of Cannabis in California Speaker: Charles Harvey, Legislative Representative, League of California Cities This section will focus on: • Prop 215 and the Medical Marijuana Program • Medical Cannabis Statewide Framework • Prop 64 & Adult-Use Legalization • Current Political Climate & League Legislative Activity Does your city have a ban on cannabis? 6 Overview & History of Cannabis in California The Medical Marquana SB 94:The Merging of Program Regulatory Schemes 1996 2016 2018 Est. 2011 2008 Prop 215:The Prop.64:The Adult Use of Legalization and the Issue of Compassionate Use Act of Marijuana Act Cannabis Deliveries 1996 7 Deliveries (wanted and unwanted} Tax Revenue New Businesses Impacts to Cities Community New Market (acceptance or bans} And, much more... Overview & History of Cannabis in California (continued) Reflections / Notes s Ordinance Creation Speakers: Moderator: Aly Zimmermann, Assistant City Manager, Vista Panelists: Cody Bass, Councilmember, South Lake Tahoe Matthew Bronson, City Manager, Grover Beach Jennifer Mizrahi, City Attorney, Desert Hot Springs/Quintanilla and Associates This section will focus on: • How cities have established local ordinances • Determining what types of commercial cannabis to authorize • Dealing with a cash business • Dealing with Federal law • Overcoming lack of political will • Social equity programming Ordinance Creation (continued) Reflections / Notes 12 Ordinance Creation Resources Online Resources: City of Vista Measure Z (community initiative approved by voters): https://records.citvofvista.com/WebLink/DocView.aspx?dbid=0&id=1658935&page=1 &cr=1 Printed Resources: "Cannabis Business License Screening Application Information Packet," from City of West Hollywood City of West Hollywood — Cannabis Business License Screening Application Weighting Criteria City of West Hollywood Municipal Code — Cannabis Uses City of Grover Beach — Commercial Cannabis Update and Policy Issues City Council Staff Report City of Grover Beach — Commercial Cannabis Uses 13 r� `v af'Nest Ho!lywc�-�� THE CITY OF WEST HOLLYWOOD 8300 Santa Monica Blvd West Hollywood, 90069 r I i Cannabis • Application Information Packet April • 2018 14 CANNABIS BUSINESS LICENSE .::..... SCREENING APPLICATION INFORMATION PACKET mom ■ ■■ mom■ Code Compliance Division City of west Hollywood 8300 Santa Monica Boulevard 0aifoffi.1984 West Hollywood, CA 90069 On November 20, 2017, the West Hollywood City Council adopted a Cannabis Ordinance allowing a variety of different cannabis businesses to be licensed in the City. Specifically, the City Council approved five types of cannabis business licenses (as shown below), and approved the issuance of eight (8) of each of the licenses. • Eight (8) Adult-Use Retail Business Licenses • Eight (8) Consumption Area (smoking, vaping, and ingestion) with on-site adult-use retail sales (sales of products to be consumed on-site) Business Licenses • Eight (8) Consumption Area (edible ingestion only) with on-site adult-use retail sales (sales of products to be consumed on-site) Business Licenses • Eight (8) Medical-Use Dispensary Business Licenses • Eight (8) Delivery Service Business Licenses (where the physical location of the business is located in West Hollywood) APPLICATION PROCESS OVERVIEW As part of the Cannabis Ordinance the City Council adopted a merit based approach to selecting which applicants would receive the licenses listed above. The selection process starts with all interested applicants submitting a screening application to the City. The screening application will include information about the applicant's ownership/management team, proposed business plan, design concept, security plan, and experience. Applicants do not need to have secured a physical location to submit a screening application. Each screening application will be reviewed and scored by an independent five member Application Evaluation Committee appointed by the City Manager. The Application Evaluation Committee members will score the screening applications based on specific criteria and weighting (points) that were formulated based on the general selection criteria that the City Council adopted as a part of the Cannabis Ordinance (Municipal Code Section 5.70.035(3)). The Application Evaluation Committee members' scores will be totaled and averaged for each applicant. The weighting criteria are included with this screening application as Exhibit A. After the Application Evaluation Committee has reviewed and scored all the screening applications, the top eight scoring applicants in each cannabis business license category will be allowed to move forward with obtaining a business license from the City (applicants are allowed 12 months to secure their City business license). The first step for the selected applicants will be to secure a physical location for their business. Once an applicant has secured a physical location they will need to obtain the appropriate planning permits (for example: zone clearance or administrative permit) from the City's Current and Historic Preservation Planning Division, affirming that the proposed use is permitted within the zoning for the property. After obtaining planning permits the applicant will have a hearing before the Business License Commission in which the commission will approve or deny issuance for the business license and set any necessary conditions on the business. During the same time the applicant is also encouraged to apply for any necessary Building and Safety permits needed to make improvements to the property (for example, building permits for tenant improvements). Prior to operation of the business the applicant will also need to secure their state cannabis license (after the City license has been issued). West Hollywood Cannabis Business License Screening Application Information Packet 15 SCREENING APPLICATION REQUIREMENTS Documents Required in Screening Application Submittal: The following information shall be included in each Screening Application Submittal: • Required Submittal Item 1: Completed Applicant/Owner Information Form • Required Submittal Item 2: Cover Letter • Required Submittal Item 3: Proof of Payment of Screening Application Fee • Required Submittal Item 4: Detail of the Applicant's Business Plan and Concept (submit for each license type) Sections shall include: o Section 1: Business Plan o Section 2: Design Concept o Section 3: Security Plan o Section 4: Applicant Experience Further Information Regarding Required Items: Applicant/Owner Information Form — Each screening application should include a completed Applicant/Owner Information Form (Required Submittal Item 1). This form includes basic information on the applicant, owners, and non-owners with a financial interest in the business. The information being requested by the City mostly mirrors the information being requested by the State. Cover Letter — The Cover Letter (Required Submittal Item 2) should be a concise overview of the applicant's screening application, including the type of licenses being applied for and the proposed business concept and design. The Cover Letter should not exceed five pages. Proof of Payment for Screening Application Fee —Applicants must pay a screening application fee for each type of license type they have applied for. Proof of payment must be included with the screening application submittal. The only proof of payment that will be accepted is a City of West Hollywood cashier receipt. Further information regarding the screening application fee and proof of payment is included on page 4. Detail of Applicant's Business Plan and Concept — This section is the main portion of the screening application (Required Submittal Item 4). For each license type the applicant shall provide detailed information about their business plan, design concept, security plan, and experience. This section is limited to a total of 75 pages for each license type (50 pages of text and 25 pages of images). Applicants are encouraged to follow the ordering in the weighting criteria (Exhibit A) to the greatest extent possible when describing their business plan and concept; to make review of the screening applications as efficient as possible. Further information about the screening application is provided in the following pages. West Hollywood Cannabis Business License Screening Application Information Packet 16 Required Format and Submittal Guidelines for Screening Application: Length - Screening Applications shall be no longer than 75 pages for each license type. The page total does not include the applicant/owner information form, proof of payment, or the cover letter (cover letter should not exceed five pages). Of the 75 pages, only 50 pages can consist primarily of text; the other 25 shall consist of only images (limited description of the images is allowed). Double sided pages count as two pages. Please limit the use of duplicative information throughout the submittal. Font and Page Size - 11-point font shall be used in the narrative portions of the screening application. All pages shall be 8.5 x 11. Order of Information - The "required submittal items" shall be provided (and labeled) in the screening application in the same order as shown on page 2. Applicants are also encouraged to follow the ordering in the weighting criteria (Exhibit A) to the greatest extent possible when describing their business plan and concept (Required Submittal Item 4); to make review of the screening applications as efficient as possible. Submittal Period — Screening applications may be submitted to the City anytime between 12:OOam (pacific time) on May 2, 2018 and 11:59pm (pacific time) on May 31, 2018. Screening applications received before or after this period will not be accepted. No additional weight will be given to screening applications that are submitted earlier than others (for example, a screening application received on May 20th will receive no additional advantage over an application received on May 30th) Document Submittal — All screening applications shall be submitted electronically through a Box link that will be located on the City's cannabis webpage (www.weho.org/cannabis) starting on May 2nd Applicants will need to drag and drop their PDF document(s) into the portal provided, no registration is required. If more than one PDF file is being submitted they should be compressed into a single ZIP file, and that ZIP file shall be uploaded. Applicants should be aware that depending on the size of their screening application it may take some time for the document to upload; please plan accordingly). The City will no longer be using PlanetBids for submittal of the applications. Multiple Applications — Applicants applying for more than one license type that are anticipated to be located at the same location are encouraged to combine their application submittal package. For a combined application package, applicants should submit only one applicant/owner information form (Item 1) and cover letter(Item 2) for the entire combined package, however, applicants need to submit separate proof of payment (Item 3) and a separate Business Plan and Concept (Item 4) for each license type. The page limitation stated previously applies to the Business Plan and Concept for each license type, not the combined application package (for example: if an applicant were submitting a combined application package for an Adult-Use Retail License and Consumption Lounge License, the Business Plan and Concept Section for each license type could be 50 pages of text and 25 pages of images). It is necessary for applicants to submit a separate business plan and concept for each license type, because they will be scored separately. If an applicant is applying for multiple license types, and it is not anticipated that the licenses will be located at the same location, than the applicant should submit a separate application package for each location. In general, combined application packages should be for businesses that plan to have more than one license type in the same location with a unified business plan and design concept. West Hollywood Cannabis Business License Screening Application Information Packet 17 Screening Application Fees Applicants are required to pay the following fees prior to submittal of their screening application. License Type Screening Application Fee Adult-Use Retail $9,880 Cannabis Consumption Area (both types) $9,880 Medical-Use Dispensaries $9,880 Cannabis Delivery Services with a Physical $5,025 Location in West Hollywood If applicants are submitting screening applications for more than one type of cannabis business license they must pay the applicable screening application fee for each license type (for example, if an applicant is submitting screening applications for an adult-use retail license, medical dispensary license, and consumption lounge license they would need to pay $29,640 ($9,880 multiplied by three)). Applicants may pay with a single check, but they should indicate to the cashier what type of licenses they are paying for, so that the receipt accurately reflects each license type. Screening application fees will not be refunded if an applicant is not selected as one of the top scoring applicants. Fees will not be refunded because they are used to cover the costs of City expenses (staffing time and other costs) to prepare and implement the screening application process, as well as expenses of the Application Evaluation Committee. Proof of payment must be included with the screening application submittal. The only proof of payment that will be accepted is a City of West Hollywood cashier receipt. The City will not accept online payments. Payments must be made in person at the Cashier's Window on the first floor of City Hall during normal operating hours (Monday-Thursday 8am-6pm, and Friday 8am-5pm). If an applicant is not able to come to City Hall they may mail a check to the City's Revenue Management Division for payment processing. The mailed check shall include a cover letter with an email address where a copy of the payment receipt can be emailed. A copy of the emailed receipt shall be included with the screening application submittal. If applicants choose to mail their payment, they should do so well in advance of the screening application submittal deadline; the City will not take any responsibility for checks not received on time. For any questions regarding mailing a check to City Hall please contact Laura D'Ambrosia (Idambrosia(a)weho.org or 323-848-6319). Checks mailed to the City should be sent to the following address: City of West Hollywood Attn: Revenue Management Division c/o Laura D'Ambrosia 8300 Santa Monica Blvd West Hollywood, CA 90069 West Hollywood Cannabis Business License Screening Application Information Packet 18 Other Key Information Contact With City Officials, City Staff, and Members of the Application Evaluation Committee — On February 5, 2018, the City Council adopted a practice that prohibits applicants (or their representatives) from contacting any member of the Application Evaluation Committee or the Business License Commission in any way. Any violation will result in the dismissal of the applicant's screening application. Additionally, applicants should be aware that all Application Evaluation Committee members are required to immediately report any attempted contact by an applicant (email, phone, in person, by mail, etc..) to the City Manager. The City Council also adopted a practice that prohibits City Councilmembers or Business License Commissioners from contacting Application Evaluation Committee members. Applicants are allowed to contact City Councilmembers, but they should be aware that the City Council will not be reviewing or scoring the screening applications and will not be deciding which applicants will be eligible to receive business licenses through the screening process. In addition, City Councilmembers are not allowed to contact Application Evaluation Committee members. Staff strongly encourages applicants to carefully review the weighting criteria, and focus their efforts on submitting a detailed and comprehensive screening application that aligns with the criteria. Multiple Licenses — Applicants are allowed to submit screening applications for multiple types of cannabis licenses. However, an applicant may not submit a screening application for more than one of the same type of cannabis license. For example, an applicant could submit screening applications for an adult-use retail license, medical dispensary license, and consumption license, but could not submit for two adult-use retail licenses (Municipal Code Section 5.70.030(8)). If an applicant submits screening applications for more than one type of license they do not need to be located at the same location (for example: an applicant can submit an application for a consumption lounge in one location and a retail store in another). Multiple Licenses in One Location — Applicants are allowed to have more than one type of cannabis business license at the same location. For example, an adult-use retail license, medical dispensary license, and consumption license could all be located at the same location (Municipal Code Section 5.70.030(6)). However, applicants should be aware that certain restrictions apply to consumption lounges that are located on the same premises as adult-use retail or medical dispensaries (Municipal Code Section 5.70.041(13)(d)). Licenses Not Transferrable — The assignment of, or attempt to assign, any cannabis license is unlawful and any such assignment or attempt to assign a license shall render the license null and void. (Municipal Code Section 5.70.060) Public Records Requests and Proprietary Data — All screening applications will become the property of the City when received. Information contained in the screening applications may be subject to disclosure under the California Public Records Act. Any sections or pages the applicant considers proprietary should be clearly marked within the screening application, although such marking is not determinative of whether it is proprietary under state law. The City reserves the right to disclose and/or withhold any information contained therein in accordance with the law. Existing Medical Dispensaries — The four existing medical dispensaries do not need to submit a screening application for a medical dispensary license. However, they should notify the City by May 31s' of their intent to maintain their medical license. If any of the four existing medical dispensaries wishes to apply for an adult-use retail license, consumption license, and/or delivery license they are required to submit a screening application for those licenses and follow the process outlined previously. West Hollywood Cannabis Business License Screening Application Information Packet 19 Ownership Stake in Multiple Applications (Same License Type) — Individuals may not be listed as Owners in more than one of the same type of license application. The definition of owner is provided on the Applicant/Owner Information Form and is consistent with the State definition of Owner. Ties — After scoring is complete, if a tie exists that impacts which applicants are included in the top eight (for example: a tie between the number 8 and number 9 ranking applicant) the Application Evaluation Committee will meet and discuss both of the applications to determine which is the highest quality application. If after further deliberation the Application Evaluation Committee still believes the two applications are tied, a game of chance (coin flip or random drawing) will occur to select the top applicant. Original Ordinance and Subsequent Amendment — On November 20, 2017, the City Council adopted the City's Cannabis Ordinance and on April 16, 2018, the City Council approved several amendments to the Ordinance, including a provision that permits indoor smoking of cannabis at cannabis consumption lounges. Both the original ordinance and the amendment can be found on the City's Cannabis webpage (www.weho.orq/cannabis). Questions — Questions regarding the screening application and weighting criteria should be emailed to City staff at cannabis(a)weho.org until May 1, 2018. The City will endeavor to answer all timely submitted questions on the City's cannabis webpage before May 2, 2018, when the screening period begins. On April 11, 2018, the City held a meeting to answer questions related to the draft weighting criteria and application screening process. A recording of this meeting can be found on the City's cannabis webpage. Additionally, the City has received a number of questions regarding the weighting criteria and application screening process over the last month. These questions, and the City's response to them, can also be found on the City's cannabis webpage (www.weho.orq/cannabis). Disclosure Regarding Changes to Published Information — While the City does not anticipate any changes to the published information, the City reserves the right to update the information on the City's cannabis webpage as necessary to resolve any unanticipated issues that may arise before or during the screening period. Any updated information will be noted as updated. All applicants are encouraged to check the City's cannabis webpage before submitting their application. West Hollywood Cannabis Business License Screening Application Information Packet 20 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL(4/23118) SCREENING APPLICATION TOTAL POTENTIAL POINTS 200 205 200 200 200 SECTION 1: BUSINESS PLAN (Potential Points) 93 98 93 93 113 Sub-Section 1A: INNOVATIVE BUSINESS MODEL Consumption Consumption Innovative Boutique Business Models Consistent with the West Adult use Medical Lounge Lounge Dispensary Retail Dis (Smoking, Edibles Delivery Hollywood Community p y Vaping, ( Only) (WH Municipal Code 5.70.035(3)(h)) Edibles) Unique Business Model- Uniqueness of the proposed business model; such as, the applicant's understanding and description of the market the business plans to serve (for example: local residents, tourists, medical 0-8 0-8 0-8 0-8 0-8 patients, or other niche markets), and how the business plans to integrate into the West Hollywood business market. Marketing-Quality and detail of the key aspects of the marketing plan that 0-2 0-2 0-2 0-2 0-2 would be generated and incorporated into the business plan. Sub-Section 1B: CONNECTION TO WEST HOLLYWOOD Consumption Consumption Connection to West Hollywood;Ability to Serve West Hollywood;and Adult Use Medical Lounge Lounge Familiarity with the City Retail Dispensary (Smoking, (Edibles Delivery Vaping, Only) (WH Municipal Code 5.70.035(3)(h)) Edibles) Community Engagement—Overall quality and detail of the proposed Community Engagement Plan; including, understanding of the community, 0-4 0-4 0-4 0-4 0-4 its values, the City's unique aspects, and how the business plans to integrate into the community. Engagement with Local Non-Profits—Community Engagement Plan includes work with local non-profits and other community groups 0-2 0-2 0-2 0-2 0-2 (volunteer efforts, partnerships, etc..). West Hollywood non-profits (or those that serve West Hollywood)are preferred. Community Events—Community Engagement Plan includes participation 0-2 0-2 0-2 0-2 0-2 in West Hollywood community events. Local Business Partnerships—Community Engagement Plan includes partnerships with existing West Hollywood businesses (for example: the 0-2 0-2 0-2 0-2 0-2 procurement of goods and services from local businesses). West Hollywood Core Values—Community Engagement Plan and business plan actively incorporates the City of West Hollywood's mission 0-2 0-2 0-2 0-2 0-2 statement and core values. (Can be found on City website: weho.org) 21 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL (4/23/18) Sub-Section 1 C: OPERATIONS Consumption Consumption Employee Training, Standard Operating Procedures, Online Ordering Lounge Systems, and Procedures for Providing Cannabis to Disadvantaged or Adult use Medical (Smoking, Lounge Delivery y g g Retail Dispensary (Edibles Eddibles Disabled Persons Eibles) only) (WH Municipal Code 5.70.035(3)(c)) Standard Operating Procedures ("SOP") -Overall quality and detail of the proposed operating procedures; including, the extent to which the applicant noted examples of industry best practices and incorporated 0-5 0-5 0-5 0-5 0-5 them into operating procedures. Additionally, did the applicant show specific examples of where the practices they included in their SOPS have worked before? SOP: Financial Plan (Start-up) - Financial plan and/or budget to start the business (based on the business plan and design concept included in the 0-3 0-3 0-3 0-3 0-3 application), including items such as tenant improvements, employee costs, legal costs, consultant costs, initial inventory. SOP: Funding (Start-Up)-Demonstration of funding availability to achieve 0-3 0-3 0-3 0-3 0-3 the financial plan detailed in the previous category. SOP: Financial Plan (Ongoing Operations) - Financial plan and/or budget to operate the business as described in the application (for example: 0-3 0-3 0-3 0-3 0-3 business pro forma, cash flow, accounting procedures, employees dedicated to financial matters). SOP: Funding (Ongoing Operations)—Demonstration or identification of access to operational capital and/or on-going line of credit once business 0-3 0-3 0-3 0-3 0-3 is operational. SOP: Environmentally Conscious Business-Quality of proposed environmentally conscious business practices in excess of those required 0-5 0-5 0-5 0-5 0-5 by state and local law. SOP: Customer Education —Detail and quality of plan for educating customers regarding cannabis products, including the potency and effects 0-5 0-5 0-5 0-5 0-5 of products, as well as variety. SOP: (Recalls)—Description of the comprehensive process for 24-hour 1 1 1 1 1 minimum response time to cannabis product recall notifications. SOP: Delivery Plan—Quality and detail of product delivery protocol, including items such as (but not limited to) security and safety procedures, customer verification methods, cash and product storage (when on 0 0 0 0 0-10 deliveries), vehicle type to be used, and community sensitivity (for example: parking). 22 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL(4/23/18) Consumption Lounge Consumption Adult Use Medical Lounge Sub-Section 1C: OPERATIONS, Continued Retail Dispensary (Smoking, (Edibles Delivery Vaping, Only) Edibles) SOP: Records Software—Standard operating procedures include electronic tracking and storage of required records of sales, delivery 1 1 1 1 1 manifests, and inventory. SOP: State Testing Requirements—Standard operating procedures include plans and procedures for how all cannabis products on the 2 2 2 2 2 premises or held by the applicant have met the testing requirements as defined by the State. SOP: Track and Trace-Standard operating procedures include detailed 1 1 1 1 1 Track and Trace Procedures as outlined by the State. Online Ordering System (Quality) - Detail, quality, visual appeal, and user friendliness of proposed online ordering system. (include conceptual 0-1 0-1 0 0 0-5 visual examples, if available) Online Ordering System (Educational Component) - Incorporation of customer educational component in online ordering, including education 0-1 0-1 0 0 0-3 on products and potency. (include conceptual visual examples, if available) Employee Training—Quality of proposed employee training; for example training about, differences in products, potency of products, customer 0-4 0-4 0-4 0-4 0-4 service, laws governing personal use. Impaired Customers—Employee training and guidelines related to intoxicated and/or impaired customers. Including plan for handling 0-1 0-1 0-4 0-4 0 intoxicated and/or impaired customers. Medical Cannabis Discounts -Quality of discount program for low-income medical patients; including income brackets, discount provided, ease of 0 0-5 0 0 0-5 program, and procedure. 23 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL(4/23/18) Sub-Section 1D: SOCIAL EQUITY Consumption Consumption Social Equity in Terms of Provision of Providing a Living Wage and Lounge Adult Use Medical Lounge Employee Benefits and Compliance with Local, State, and Federal Retail Dispensary (Smoking, (Edibles Delivery Employee Non-Discrimination Policies Vaping, Only) Edibles) (WH Municipal Code 5.70.035(3)(d)) Hiring Practices—Quality and detail of plan to promote social equity in hiring (for example: seeking employees from, and advertising positions to, 0-4 0-4 0-4 0-4 0-4 veterans, the LBGT community, women, and/or communities disproportionately impacted by prior cannabis laws). Compensation Package- Quality of compensation package to be offered to employees; including, salary(above State minimum and City living 0-8 0-8 0-8 0-8 0-8 wage), health insurance, other insurance, retirement plan, and paid leave. Small Cannabis Cultivators—Extent to which products will be purchased from small scale cannabis cultivators (cultivators of less than one-half acre in total (total includes all state licenses the cultivator receives)). Proposed 0-3 0-3 0-3 0-3 0-3 partnerships and selection process should be explained. Partnerships with cultivators of 10,000 sq. ft. or less are especially desirable. Economic Inclusion (Production)—Extent to which products will be purchased from cultivators or manufacturers located in census tracts with 0-3 0-3 0-3 0-3 0-3 income and poverty levels below state averages. Proposed partnerships and selection process should be explained. Significant Social Equity Component—Additional business practices, or characteristics demonstrating a focus on social equity (including by way of 0-3 0-3 0-3 0-3 0-3 example, individuals from minority groups involved in the business or ownership). Non-Discrimination—Plan to promote and ensure local, state, and federal 1 1 1 1 1 employee non-discrimination policies. 24 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL (4/23/18) Sub-Section 1E: PRODUCT OFFERINGS Consumption Lounge Consumption Ability to Demonstrate the Quality of Cannabis Strains and Derivative Adult use Medical Lounge Product Offerings Retail Dispensary (Smoking, (Edibles Delivery Vaping, Only) (WH Municipal Code 5.70.035(3)(b)) Edibles) Product Procurement—Quality and detail of procurement plan; such as, due diligence performed prior to executing purchase contracts, and quality 0-3 0-3 0-3 0-3 0-3 control of incoming products. Natural Product Offerings—Extent to which product offerings will be naturally produced, without the use of pesticides or, harmful or inorganic 0-3 0-3 0-3 0-3 0-3 chemicals. Consumer Reviews—Ability for customers to write and view product 0-2 0-2 0-1 0-1 0-2 reviews in a centralized location (online)for products sold at the business. Environmentally Conscious Producers—Describe the plan to purchase cannabis from cultivators and manufacturers with environmentally conscious practices (those that adhere to, or exceed, local and state regulations and permitting requirements (and abstain from practices such 0-2 0-2 0-2 0-2 0-2 as, chemical use, stream diversion, unpermitted grading/clear cutting, illegal dumping)). Applicant should highlight and provide a description of the producers; also, provide evidence of planned partnerships. 25 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL(4123118) SECTION 2: DESIGN CONCEPT (Potential Points) 39 39 39 39 19 To the extent possible during the screening phase,the design should incorporate the City's design guidelines and regulations(for example:signage regulations will apply to any business regardless of ultimate location),as well as State regulations(for example:cannabis product consumption must not be seen by the public). The City's design guidelines will be added to the cannabis webpage;however,please note that these are only the City's"design guidelines",specific regulations related to building and planning also exist(see Municipal Code Title 13 and Title 19). Consumption Lounge Consumption Ability to Meet City of West Hollywood Urban Design Standards adult use Medical Lounge (WH Municipal Code 5.70.035(3)(g)) Retail Dispensary (yap king (Edibles Delivery Edibles) Only) I Exterior Design Concept-Quality of proposed exterior presence of the physical location, including the applicant's concept for the architecture, 0-8 0-8 0-6 0-6 0-4 landscaping, signage, lighting, entry experience, relationship to the street and sidewalk, parking, and the overall sense of welcome and security. Interior Design Concept-Quality of proposed interior presence of the physical location, including the applicant's concept for the interior 0-8 0-8 0-10 0-10 0 experience, and how the architecture, layout, fixtures, displays, and lighting would help accomplish the concept. Design Concept Creativity-Creativity of the physical design concept, how visually and experientially unique is the concept, including innovation and 0-6 0-6 0-6 0-6 0-3 originality in aesthetics, atmosphere, imagery, signage, and branding. Design Concept Integration -Quality of fit within the City (integration into existing general urban fabric and architectural landscape found throughout the City). If the applicant anticipates locating in a specific neighborhood in 0-3 0-3 0-3 0-3 0-2 the City, a description of how the business fits into that neighborhood is encouraged; however, this is not required. Integration of Security Measures—Quality and detail of applicant's plan to integrate security enhancements into the physical design/concept, so as 0-3 0-3 0-3 0-3 0-1 not to be overly noticed by customers or the public. Odor Control—Describe ventilation and air purification system, including demonstrated effectiveness(may include examples of where a similar 0-7 0-7 0-7 0-7 0-7 system has worked effectively before). Design Team - Is an accredited architect or design professional committed to work with the application team to create and execute the design 4 4 4 4 2 concept? 26 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL(4/23/18) SECTION 3: SECURITY PLAN (Potential Points) 40 40 40 40 40 Security Program Consumption Consumption unici 3 e Lounge (WH M Pal Code 5.70.035( �( �� Adult Use Medical (Smoking, Lounge Delivery Retail Dispensary Vaping, (Edibles (At a minimum state guidelines should be followed) Edibles) only) Overall Quality-Overall detail and quality of security plan. 0-5 0-5 0-5 0-5 0-5 Cash Management Plan—Quality and detail of cash management plan, including cash counting/reconciliation procedures, cash storage, cash 0-5 0-5 0-5 0-5 0-5 transport, deposit into a banking institution (if any), and employee training. Employee Safety Education -Quality of employee safety education plan; including training regarding, product handling, burglary protocols, robbery 0-5 0-5 0-5 0-5 0-5 protocols, and other potential hazards of the cannabis business. Security Experience—Security experience of individual/firm designing the 0-5 0-5 0-5 0-5 0-5 security plan. (Individual/firm should be identified &experience described) Product Deliveries-Quality of plan for securing product deliveries to the 0-4 0-4 0-4 0-4 0-4 business (from delivery vehicle to building). Employee Theft Reduction Measures—Quality and extensiveness of 0-2 0-2 0-2 0-2 0-2 employee theft reduction measures including audits and check in/out. Security Guards—Quality of the anticipated security guard plan for the business; including, number of guards, hours, protocols, and day-to-day 0-5 0-5 0-5 0-5 0-2 procedures/operations. Video Camera Surveillance-Security Plan includes video camera surveillance at, or greater, than State minimum requirements.Additionally, 0-3 0-3 0-3 0-3 0-2 overall quality of the applicant's plan to use cameras; including number of cameras, locations, resolution, and how long images are saved. Armored Car- Daily armored car pick-up of cash deposits. 3 3 3 3 3 Product Access Protocols—Business plans to include a separate check-in area where identification is checked to ensure that only qualified 2 2 2 2 1 employees gain access to where cannabis products are stored. Background Checks—Applicant plans to use background checks in the 1 1 1 1 1 initial employee hiring process. Driver Security and Safety Procedures—Quality and detail of delivery driver security and safety procedures/plan, including driver education 0 0 0 0 5 related to potential hazards. 27 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL(4/23/18) SECTION 4: EXPERIENCE (Potential Points) 23 23 23 23 23 Previous Adult-Use Retail, Medical-Use Dispensing, or Consumption Area Operation Experience that was Subject to State Cannabis Regulation, or Experience in a Similarly State-Regulated Activity(by Consumption Consumption way of example and not limitation, alcohol sales) (WH Municipal Code Adult use Medical Lounge Lounge 5.70.035(3)(a)) Retail Dispensary (Smoking, (Edibles Delivery Vaping, Only) Pre-existing West Hollywood Cannabis Business that has no Edibles) outstanding code violations with the City and is in compliance with local and state laws(WHMC 5.70.035(3)(0). Experience-Quality and Quantity(number of years) of experience in the cannabis industry(or a similarly state regulated industry) of the individual (or individuals)that will be directing, controlling, and/or managing the day- to-day operations of the business. Individual (or individuals) must also be considered an owner(based on the State definition of owner; see State Business and Professions Code 26001). To receive the maximum 10 0-10 0-10 0-10 0-10 0-10 points at least one individual must have 10 or more years of experience (however, total points awarded (0-10) will be based on quality of experience). Applications with individuals with less than 10 years of experience can receive up to 7 points(however, total points awarded (0-7) will be based on quality of experience). Restaurant/Bar Experience—Proposed day-to-day operator has at least 5 0 0 5 5 0 years' experience in restaurant/bar operation. Cannabis Industry Knowledge—Overall knowledge of the cannabis industry(as demonstrated throughout the screening application), including 0-10 0-10 0-5 0-5 0-10 industry best practices and state regulations. Ownership Team—Describe the involvement of the ownership team in day-to-day operation of the business. "Owner' is defined based on the 0-3 0-3 0-3 0-3 0-3 State definition of owner; see State Business and Professions Code 26001. 28 CITY OF WEST HOLLYWOOD—CANNABIS BUSINESS LICENSE SCREENING APPLICATION WEIGHTING CRITERIA FINAL(4/23/18) SECTION 5: OVERALL QUALITY (Potential Points) 5 5 5 5 5 Consumption Consumption Adult Use Medical Lounge Lounge Retail Dispensary (Smoking, (Edibles Delivery vaping, Only) Edibles) Quality and Thoroughness of Application Materials 0-5 0 5 0-5 0-5 0-5 (WH Municipal Code Section 5.70.035(3)(h)) zn 1/9/2019 City of West Hollywood West Hollywood Municipal Code Up Previous Next P4, Print No Frames Title 5 Business Licenses, Regulations and Permits Article 2—Specific Businesses Regulated Chapter 5.70 Cannabis Uses 5.70.010 Definitions. The definitions for cannabis uses in this chapter shall be as defined in Section 19.90.020 of the municipal code. (Ord. 17-1016§8,2017;Ord.09-833 §4,2009) 5.70.020 Application Information. a. Cannabis Business License Screening Application. In addition to the information prescribed by the Director pursuant to the authority set forth in Section 5.08.040,all screening applications for a license to conduct a cannabis adult-use retail establishment, consumption area,delivery service,or a cannabis medical-use dispensary,shall contain information related to the following categories: 1. Business plan; 2. Physical design and concept; 3. Security plan; 4. Experience. Screening applications may be accepted without having secured a physical business location;however,a physical location shall be required prior to issuance of a business license by the city.Pursuant to Section 5.70.035,the specific criteria and weighting points for each of the categories listed above will be determined prior to the commencement of the initial screening application period and posted publically. b. Zone Clearance Application. If selected through the screening process as one of the top eight applicants in one of the license categories,cannabis businesses shall submit a zone clearance application in conformance with Section 19.10.030.All exterior building improvements,including fagade improvements,shall be reviewed for conformance with the city's design standards prior to issuance of a zone clearance.The zone clearance for the location does not excuse compliance with any other requirement in the Zoning Ordinance or Building Code and any additional permits required may be obtained after the business license is issued but before operation. c. Cannabis Business License Application. After obtaining an approved zone clearance,cannabis businesses shall submit a business license application to include all information required in Section 5.08.040 and the additional information described below,if applicable for a certain business type. 1. All the information provided in subsection(a),Cannabis business license screening application; 2. In the event the applicant is not the owner of record of the real property upon which the cannabis business is or is to be located,the application must be accompanied by a notarized statement and consent from the owner of the property acknowledging that a cannabis business is or will be located on the property.In addition to furnishing such notarized statement,the applicant shall furnish the name and address of the owner of record of the property,as well as a copy of the lease or rental agreement pertaining to the premises in which the cannabis business is or will be located; 3. An executed release of liability and hold harmless in the form set forth in the city's application form; 4. A description of the procedure for documenting the source of the cannabis to be dispensed by the cannabis use.If the cannabis is cultivated or manufactured off-site,documentation that the off-site location is compliant with the zoning regulations of the jurisdiction in which it is located; 5. Text and graphic materials showing the site in the context of the immediate neighborhood and floor plan of the facility; 6. A description of the screening,registration and validation process for qualified medical cannabis patients and that purchasers of medical-use cannabis are eighteen years of age or older and adult-use cannabis are twenty-one years of age or older; 7. A description of qualified patient records acquisition and retention procedures for medical-use dispensaries; 8. A description of the process for tracking cannabis quantities and inventory controls,including on-site cultivation(if any),processing and cannabis products received from outside sources; 9. A description of measures taken to minimize or offset energy use from the cultivation or processing of cannabis plants and products,if these uses are proposed as ancillary uses under Section 19.36.030; 10.A description of chemicals stored or used on-site and any effluent proposed to be discharged into the city's wastewater or storm water systems; 30 https://gcode.us/codestwesthollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses 11.Authorization for the city to verify the information and representations contained in the application; 12.Delivery Services Application.A description of any cannabis delivery service,including number of delivery vehicles, location of vehicle storage,and extent of delivery area; 13.If consumption,cultivation,retail sales,dispensing,storage,or manufacturing is a planned part of the business,a description and plan of the odor control system to be utilized,such as roof ventilation and/or carbon air filtration,or other applicable odor control as required for compliance with Sections 5.70.040(k),5.70.041(k),and 5.70.043(p); 14.If on-site consumption(including smoking,vaping,and ingestion of edible cannabis products)is a planned part of the business,provide a description of the consumption area.The on-site consumption plan must include: A. The secured location of the on-site consumption area clearly identified as part of the site plan; B. A detailed description of how to prevent the visibility from any public place or non-age-restricted area(e.g.types of windows used,and/or example elevations as seen from the public right-of-way)pursuant to state law; C. A detailed description of how access will be limited to persons twenty-one years of age or older;and D. If smoking and vaping of cannabis products is proposed,a detailed description of compliance with Section 7.08.030 (Smoking Regulations)in the municipal code. 15.If manufacturing or cultivation is a planned part of the business as ancillary uses under Section 19.36.030,a Hazard Analysis Plan or equivalent document must be submitted to and approved by the Los Angeles County Fire Department as part of the application;and 16.Any additional information deemed relevant by the Director. (Ord. 18-1029§3,2018;Ord. 17-1016§ 8,2017;Ord.09-833 §4,2009) 5.70.030 Minimum Criteria for Issuance of a License. a. The applicant,and any existing or prospective manager,must be at least twenty-one years of age. b. The applicant,or any existing or prospective manager,must not have had a similar type of license previously revoked or denied for good cause within the immediately preceding two years prior to the license application. c. The applicant and proposed manager shall undergo a background investigation.Neither the applicant,nor any proposed or prospective manager,shall have been convicted of: 1. Any offense relating to possession,manufacture,sales,or distribution of a controlled substance,with the exception of cannabis related offenses; 2. Any offense involving the use of force or violence upon the person of another; 3. Any offense involving theft,fraud,dishonesty or deceit; 4. Sales of cannabis to a minor or use of a minor to distribute cannabis. For purposes of this subsection(c),a conviction includes a plea or verdict of guilty or a conviction following a plea of nolo contendere.The above criteria are in addition to the provisions in Section 5.08.080(Grounds for Denial of Business License)and any applicable provisions of state law. d. The location for which the license is sought shall not be located within six hundred feet of a day care center,youth center or school,and otherwise comply with Sections 7.08.030, 19.10.030, 19.36.091, 19.36.092, 19.36.093, 19.36.340, 19.90.020,of the municipal code.For purposes of this section,youth center shall mean any public or private facility that is primarily used to host recreational or social activities for minors,including,but not limited to,private youth membership organizations or clubs,social service teenage club facilities,video arcades,or similar amusement park facilities as defined by state law;day care center means any child day care facility other than a family day care home,and includes infant centers,preschools,extended day care facilities,and school age child care centers as defined by state law;and school shall mean any property containing a structure which is used for education or instruction,whether public or private,at grade levels kindergarten through 12. e. There shall be no more than the following number of cannabis business licenses issued at any one time in the following activity categories(1)—(5): 1. Eight adult-use retail business licenses. 2. Eight consumption area(smoking,vaping,ingestion)with on-site adult-use retail(sales of products to be consumed on- site)business licenses. 3. Eight consumption area(edible ingestion only)with on-site adult-use retail(sales of products to be consumed on-site) business licenses. 4. Eight medical-use dispensary business licenses. 31 https://gcode.us/codes/westhollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses 5. Eight business licenses for cannabis delivery services located in West Hollywood and no limit on the amount of business licenses issued for cannabis delivery services that are located outside the city limits and deliver cannabis to customers within the City of West Hollywood. f. A separate business license is required for each cannabis business activity listed in subsection(e).Multiple cannabis business activities are allowed at one location. - g. No separate cannabis business license is required for cannabis testing laboratories. h. An applicant may not apply for,or possess,more than one of the same type of cannabis business license. (Ord. 18-1029§4,2018;Ord. 17-1016§ 8,2017;Ord.09-833 §4,2009) 5.70.035 Application Period,Scoring,and Review. a. There shall be an initial thirty-day cannabis business license screening application period to be determined by the City Manager,or designee.Subsequent cannabis business license screening application periods shall commence upon certification by the City Manager,or designee,that additional Cannabis Licenses are available and shall close thirty days after such certification. b. An application evaluation committee composed of at a minimum three individuals with demonstrated experience in either city government or the cannabis industry,with no business interests in the City of West Hollywood shall be appointed by the City Manager to review and score each application based on the general criteria listed below.The specific criteria and weighting(points per criteria)for each license type will be determined prior to the commencement of the initial screening application period and posted publically.Each application will be independently scored by the evaluation committee members. c. The following general criteria shall be used to rank applications: 1. Previous adult-use retail,medical-use dispensing,or consumption area operation experience that was subject to state cannabis regulation,or experience in a similarly state-regulated activity(by way of example and not limitation,alcohol sales). 2. Ability to demonstrate the quality of cannabis strains and derivative product offerings. 3. Employee training,standard operating procedures,online ordering systems and procedures for providing medical cannabis to disadvantaged or disabled persons. 4. Social equity in terms of provision of providing a living wage and employee benefits and compliance with local,state, and federal employee non-discrimination policies. 5. Security program. 6. Pre-existing West Hollywood cannabis business that has no outstanding code violations with the city and is in compliance with local and state laws. 7. Ability to meet City of West Hollywood Urban Design Standards. 8. Additional information that demonstrates the ability to operate in a safe and responsible manner in the city,including, without limitation,a review of the quality and thoroughness of application materials,connection to West Hollywood,ability to serve West Hollywood,familiarity with the city,and innovative boutique business models consistent with the West Hollywood community. d. Prior to scoring applications city staff shall review applications for general compliance with the city's municipal code or any other applicable laws,and shall reject any application which does not meet such requirements.Rejected applications shall not be scored.The city shall also disqualify any application that contains any false or misleading information. e. The scores awarded by the application evaluation committee shall be totaled and averaged for each applicant.The applicants shall then be ranked from highest to lowest based on their scores. f. The top eight applicants in each license category(or applicants applying for vacated licenses)based on points are required to secure a viable business location if one has not been secured and apply for and obtain a zone clearance(Chapter 19.42 of the municipal code)from the West Hollywood Planning and Development Services Department after being notified that their application has been accepted and ranked as one of the top eight applicants(or available vacated licenses). g. Top ranked applicants(eight in each category)that have obtained a zone clearance from the city are required to be reviewed ' and approved by the Business License Commission prior to issuance of a business license by the city. h. If any of the top eight ranking applicants in each license category has not secured a business license from the city within twelve months of the city notifying them they were one of the top eight ranking applicants,their ability to obtain a business license, shall terminate. i. Applicants that have approved licenses issued by the city shall obtain a license from the state,as well as any other required local permits from the city(i.e.,building permits)or other local agencies(i.e.,Los Angeles County Fire Department,Sheriff's Office, or Health Department)prior to operating a cannabis business in the city. (Ord. 18-1029§5,2018;Ord. 17-1016§8,2017) 32 https://gcode.us/codes/westhollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses 5.70.040 Adult-Use Retail—Operating Requirements. All adult-use retailers in the city shall operate in conformance with the following operating requirements: a. Security shall comply with the following minimum standards: 1. Adult-use retail businesses shall provide adequate security and lighting on-site to ensure the safety of persons and protect the premises from theft at all times in conformance with the security plan submitted with the license's application. 2. All security guards employed by adult-use retail businesses shall be licensed and possess a valid Department of Consumer Affairs"Security Guard Card"at all times.Adult-use retailer's security guards shall not possess firearms or tasers. 3. Adult-use retail businesses shall provide a neighborhood security guard patrol for a two-block radius surrounding the business during all hours of operation. b. There shall be no on-site sales of alcohol or tobacco products,and no on-site consumption of alcohol or tobacco products by patrons or employees. c. Hours of operation shall be limited to:Monday through Sunday,6:00 a.m.to 2:00 a.m.,or as further limited by the Business License Commission or state law. d. Adult-use retailers shall notify patrons of the following verbally and through posting of a sign in a conspicuous location readily visible to persons entering the premises: 1. Patrons must leave the site and not consume cannabis until at home or in an equivalent private location,unless the adult- use business has a valid cannabis consumption license issued by the city.Adult-use retail employees shall monitor the site and vicinity to ensure compliance. 2. Entry into the premises by persons under the age of twenty-one is prohibited. e. Adult-use retail businesses shall only provide cannabis to an individual in an amount consistent with personal possession and use limits allowed by the state. f. Adult-use retail businesses shall provide law enforcement and all neighbors within one hundred feet of the business with the name and phone number of an on-site community relations employee to notify if there are operational problems with the establishment. g. Adult-use business operator(s)shall attend regular meetings with the Los Angeles County Sheriff's Department,Los Angeles Fire Department,and City Public Safety Department staff to review public safety issues associated with the operations. h. Adult-use retailers shall dispense cannabis only from the following sources: 1. Limited ancillary cultivation of cannabis on-site is permitted.The space devoted to cultivation and manufacturing(as outlined in subsection(n))shall not exceed twenty-five percent of the total floor area,but in no case more than one thousand five hundred square feet or greater than ten feet in height,and be in compliance with Section 19.36.030. 2. From an off-site location cultivated in accordance with applicable state law and zoning regulations in the jurisdiction in which it is cultivated. i. West Hollywood City Code Compliance Officers,West Hollywood Sheriffs Deputies,Los Angeles Fire Department staff, or other agents or employees of the city requesting admission for the purpose of determining compliance with these standards shall be given unrestricted access. j. Adult-use retailers shall comply with the provisions of state law. k. Adult-use retailers shall have a responsible person on the premises to act as manager and supervise employees at all times during business hours. 1. An odor absorbing ventilation and exhaust system shall be installed so that odor generated inside the business is not detected outside the property or lease area boundaries,or anywhere on adjacent property or public rights-of-way,or within any other unit located within the same building as the cannabis use. in. Delivery of cannabis from adult-use retailers to customers in West Hollywood and surrounding areas is permitted,in accordance with operating requirements in Section 5.70.042 Cannabis Delivery Services—Operating Requirements. n. Adult-use retailers shall be permitted to manufacture cannabis derivatives and products subject to the following requirements: 1. Limited ancillary manufacture of cannabis derivatives and products is permitted.The space devoted to manufacturing and cultivation(as outlined in Section 5.70.040(h)(1))shall not exceed twenty-five percent of the total floor area of the retail space, but in no case more than one thousand five hundred square feet. 2. Cannabis manufacturing shall be ancillary to the adult-use retail business in compliance with Section 19.36.030,and no stand-alone manufacturing or production businesses shall be allowed. 3. Cannabis manufacturing shall be subject to local,state,and federal health and safety regulations. 33 https://qcode.us/cGdes/westhollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses o. The consumption of cannabis products sold at an adult-use retail business is allowed if the business is issued a separate consumption area business license.The consumption portion of the business shall comply with all requirements of Section 5.70.041. Cannabis products not fully consumed onsite may be taken offsite by the purchaser. (Ord. 18-1029§6,2018;Ord. 17-1016§8,2017;Ord.09-833 §4,2009) 5.70.041 Cannabis Consumption Area with On-Site Adult-Use Retail—Operating Requirements. All cannabis consumption areas in the city shall operate in conformance with the following operating requirements: a. Security shall comply with the following minimum standards: 1. Cannabis consumption areas shall provide adequate security and lighting on-site to ensure the safety of persons and protect the premises from theft at all times in conformance with the security plan submitted with the license application. 2. All security guards employed by cannabis consumption areas shall be licensed and possess a valid Department of Consumer Affairs"Security Guard Card"at all times.Consumption areas security guards shall not possess firearms or tasers. 3. Cannabis consumption areas shall provide a neighborhood security guard patrol for a two-block radius surrounding the business during all hours of operation. b. There shall be no on-site sales of alcohol or tobacco,and no on-site consumption of alcohol or tobacco products by patrons or employees.The on-site sale of food and food items infused with cannabis is permitted. c. Hours of operation shall be limited to:Monday through Sunday,6:00 a.m.to 2:00 a.m.,or as further limited by the Business License Commission or state law. d. Cannabis consumption areas shall notify patrons of the following verbally and through posting of a sign in a conspicuous location readily visible to persons entering the premises: 1. Entry into the premises by persons under the age of twenty-one is prohibited. e. Cannabis consumption areas shall only provide cannabis to an individual in an amount reasonable for on-site consumption and consistent with personal possession and use limits allowed by the state. f. Cannabis consumption areas shall provide law enforcement and all neighbors within one hundred feet of the business with the name and phone number of an on-site community relations employee to notify if there are operational problems with the establishment. g. Cannabis consumption area operator(s)shall attend regular meetings with the Los Angeles County Sheriff's Department, Los Angeles Fire Department,and City Public Safety Department staff to review public safety issues associated with the operations. h. Cannabis consumption areas shall sell cannabis only from the following sources: 1. Limited ancillary cultivation of cannabis on-site is permitted.The space devoted to cultivation shall not exceed twenty- five percent of the total floor area,but in no case more than one thousand five hundred square feet or greater than ten feet in height, and be in compliance with Section 19.36.030. 2. From an off-site location where cannabis is cultivated or manufactured in accordance with applicable state law and zoning regulations in the jurisdiction in which it is cultivated or manufactured. 3. The on-site production of cannabis-infused food items. i. West Hollywood City Code Compliance Officers,West Hollywood Sheriff's Deputies,Los Angeles Fire Department staff, or other agents or employees of the city requesting admission for the purpose of determining compliance with these standards shall be given unrestricted access. j. Cannabis consumption areas shall have a responsible person on the premises to act as manager and supervise employees at all times during business hours. k. An odor absorbing ventilation and exhaust system must be installed so that odor generated inside the business is not detected outside the property or lease area boundaries,or anywhere on adjacent property or public rights-of-way,or within any other unit located within the same building as the cannabis use. 1. Depending on the type of cannabis consumption areas business license issued by the city,the consumption area shall be limited to one of the following cannabis consumption methods: 1. Consumption of cannabis by smoking,vaping,and ingestion;or 2. Consumption by ingestion only. m. Cannabis consumption areas shall be permitted subject to the following requirements: 1. Cannabis consumption areas shall not be visible to the public or by any persons under twenty-one years of age. 2. No sale or consumption of alcohol or tobacco is allowed on the licensed premises. 34 https://gcode.us/codes/westhollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses 3. No one under twenty-one years of age is allowed in the consumption area. 4. Cannabis consumption areas located on the same premises as an adult-use or medical-use retail business shall also comply with the following: A. The space devoted to cannabis consumption shall not exceed fifty percent of the total floor area of the adult-use or medical-use retail space,but in no case more than one thousand five hundred square feet. B. Cannabis consumption areas shall be well-ventilated private areas that are partitioned off from access to all other areas of the retail establishment and are designed to prevent the flow of smoke to any other area of the establishment. n. Cannabis consumption areas that allow smoking and vaping shall comply with Section 7.08.030 Smoking Regulations. o. Conduct of Patrons.The cannabis consumption area shall do the following to encourage appropriate patron conduct: 1. Make an announcement at closing requesting patrons to respect the residents of the adjacent residential neighborhoods by being quiet when leaving; 2. Post signs at locations clearly visible within the consumption area and at both on-and off-site parking areas,requesting patrons to respect residents of adjacent residential neighborhoods by being quiet when leaving and reminding patrons of the existence of permit parking districts within the neighborhoods adjacent to the consumption area. 3. Cut off service to impaired patrons and provide information on car services. p. Employee Training and Customer Education. 1. The business shall train their employees about the various products the consumption area sells, including potency of the products,absorption time,and effects of the products. 2. Employees shall educate all customers as to the items mentioned in subsection(1),in an effort to ensure responsible consumption. q. Noise. The structure housing the consumption area shall be adequately soundproofed so that interior and exterior noise is not audible beyond the property line and shall comply with Chapter 9.08,Noise. r. The management of the consumption area shall: 1. Place and properly maintain solid waste receptacles and recycling bins,in sufficient numbers and locations to service the needs of the proposed use at peak business periods,in compliance with Section 19.20.180(Solid Waste and Recyclable Materials Storage). 2. Ensure that the consumption area property and all areas within at least one hundred feet of the consumption area are free of any waste or litter generated by the use,by 7:00 a.m.following each night of operations. (Ord. 18-1029§ 7,2018;Ord. 17-1016§ 8,2017;Ord.09-833 §4,2009) 5.70.042 Cannabis Delivery Services—Operating Requirements. Delivery of cannabis from delivery services with delivery as the primary service,as well as adult-use and medical-use retailers to customers in West Hollywood is permitted,in accordance with the following requirements: a. All cannabis delivery services,whether physically located inside or outside the city,shall have an approved business license for a cannabis delivery service from the City of West Hollywood and be able to show compliance with the regulations of the originating jurisdiction. b. Every applicant for a delivery service license shall obtain and maintain in full force and effect the following automobile insurance policy:An automotive liability insurance policy,as required by subsection(c)of Section 5.08.120. c. The licensee shall maintain in force and effect at all times while the license is in effect workers' compensation insurance as required by law. d. Prior to the issuance of a license under this chapter,and at all times while the license is in effect,the licensee shall maintain on file with the Director proof of the insurance required hereunder. e. If the insurance policies issued to the licensee pursuant to this chapter are canceled for any reason,the license issued under this chapter is automatically suspended.In order to reinstate the license,the licensee shall file a new certificate of insurance and provide proof of such to the Director. f. Only delivery to persons twenty-one years of age or over shall be allowed and eighteen years of age and older if the customer is a medical patient. g. All drivers and anyone accompanying the driver must beat least twenty-one years of age or over. h. No signage on the exterior of the vehicle identifying the vehicle as a cannabis delivery vehicle shall be allowed. i. The amount of cannabis allowed in each delivery vehicle shall be in compliance with state law. 35 https://gcode.us/codestwesthollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses j All cannabis delivery service customers are required to be preregistered with the delivery service prior to receiving deliveries of cannabis. k. A delivery service that has a physical location in West Hollywood may store cannabis and cannabis products for delivery in an area that shall not exceed seventy-five percent of the total floor area of the business's location,but in no case more than one thousand five hundred square feet. (Ord. 18-1029§8,2018;Ord. 17-1016§ 8,2017;Ord.09-833 §4,2009) 5.70.043 Medical-Use Dispensaries—Operating Requirements. All medical-use dispensaries in the city shall operate in conformance with the following operating requirements: a. Security shall comply with the following minimum standards: 1. Medical-use dispensaries shall provide adequate security and lighting on-site to ensure the safety of persons and protect the premises from theft at all times in conformance with the security plan submitted with the license application. 2. All security guards employed by medical-use dispensaries shall be licensed and possess a valid Department of Consumer Affairs"Security Guard Card"at all times.Medical-use dispensary security guards shall not possess firearms or tasers. 3. Medical-use dispensaries shall provide a neighborhood security guard patrol for a two-block radius surrounding the dispensary during all hours of operation. b. No recommendations for medicinal cannabis shall be issued on site. c. There shall be no on-site sales of alcohol or tobacco.No alcohol or tobacco products shall be consumed by patrons or employees. d. Hours of operation shall be limited to:Monday through Sunday,6:00 a.m.to 2:00 a.m.,or as further limited by the Business License Commission or state law. e. Medical-use dispensaries shall only dispense medical-cannabis to qualified patients and their caregivers as defined by state law,unless otherwise authorized by a state license and local business license to dispense adult-use cannabis on the same premises. f. Medical-use dispensaries shall notify patrons of the following verbally and through posting of a sign in a conspicuous location readily visible to persons entering the premises: 1. Use of cannabis shall be limited to the patient identified on a valid doctor's recommendation,or a qualified purchaser identified on a state-issued form of identification. 2. Patrons must immediately leave the site and not consume cannabis until at home or in an equivalent private location, unless the medicaluse dispensary has a valid cannabis consumption license issued by the city.Medical-use dispensary staff shall monitor the site and vicinity to ensure compliance. 3. Forgery of medical documents is a felony crime. g. Medical-use dispensaries shall only provide cannabis to an individual in an amount consistent with personal-medical use. h. Medical-use dispensary patients shall be eighteen years of age or older. i. Medical-use dispensaries shall provide law enforcement and all neighbors within one hundred feet of the medical-use dispensary with the name and phone number of an on-site community relations staff person to notify if there are operational problems with the establishment. j. Medical-use dispensary operator(s)shall attend regular meetings with the Los Angeles County Sheriff's Department,Los Angeles County Fire Department,and City Public Safety Department staff to review public safety issues associated with the operations. k. Medical-use dispensaries shall dispense cannabis to qualified patients and primary caregivers only from the following sources: 1. Limited ancillary cultivation of cannabis on-site is permitted.The space devoted to cultivation and manufacturing(as outlined in subsection(r))shall not exceed twenty-five percent of the total floor area,but in no case more than one thousand five hundred square feet or greater than ten feet in height. 2 From an off-site location cultivated in accordance with applicable state law and zoning regulations in the jurisdiction in which it is cultivated. I. West Hollywood City Code Compliance Officers,West Hollywood Sheriff's Deputies,Los Angeles Fire Department staff, or other agents or employees of the city requesting admission for the purpose of determining compliance with these standards shall be given unrestricted access. in. Medical-use dispensaries shall comply with the provisions of state law. 36 https://gcode.us/codes/westhollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses n. Medical-use dispensaries shall develop and implement a program subject to approval of the city to provide subsidized medical cannabis to income eligible patients,("compassion program")in accordance with the following criteria: 1. Minimum twenty-five percent discount to all qualified patients based upon need; 2. Medical-use dispensaries shall not be obliged to provide more than one hundred grams per month to eligible patients; 3. Program Administration. A. Social service provider to qualify patients on an annual basis, B. Patients will be provided with a letter as proof of eligibility that expires one year after the date it is issued, C. Medical-use dispensaries shall accept eligible patients and keep a record of qualified compassion program patients; 4. On-site/instant medical and financial need eligibility criteria: A. SSDI, B. Medi-Cal, C. Unemployed with verification; 5. Social service agency verified medical/financial need eligibility: A. Section 8 housing verification, B. Two hundred percent income below federal poverty level, C. Proof of disability, D. Medical need such as terminal illness,cancer treatment,etc.; 6. Residency Requirement.Program for West Hollywood residents only. o. Medical-use dispensaries shall have a responsible person on the premises to act as manager and supervise employees at all times during business hours. p. An odor absorbing ventilation and exhaust system shall be installed so that odor generated inside the business is not detected outside the property or lease area boundaries,or anywhere on adjacent property or public rights-of-way,or within any other unit located within the same building as the cannabis use. q. Delivery of cannabis from medical-use dispensaries to customers in West Hollywood and surrounding areas is permitted,in accordance with operating requirements in Section 5.70.042 Cannabis Delivery Services—Operating Requirements. r. Medical-use dispensaries shall be permitted to manufacture cannabis derivatives and products subject to the following requirements: 1. Limited manufacture of cannabis derivatives and products is permitted.The space devoted to manufacturing and cultivation(as outlined in subsection(k)(1))shall not exceed twenty-five percent of the total floor area of the retail space,but in no case more than one thousand five hundred square feet. 2. Cannabis manufacturing shall be ancillary to the medical-use dispensary and no stand-alone manufacturing businesses shall be allowed. 3. Cannabis manufacturing shall be subject to local,state,and federal health and safety regulations. s. The consumption of cannabis products sold at a medical-use retail business is allowed if the business is issued a separate consumption area business license.The consumption portion of the business shall comply with all requirements of Section 5.70.041. Cannabis products not fully consumed on-site may be taken off-site by the purchaser. (Ord. 18-1029§9,2018;Ord. 17-1016§8,2017;Ord.09-833 §4,2009) 5.70.050 Duration of Cannabis Use License—Renewal. All licenses issued pursuant to this chapter shall expire one year after the date of issuance;provided,however,that a license may be renewed pursuant to Section 5.08.130 for additional one-year periods upon approval of an application for renewal that complies with all provisions of this title. (Ord. 17-1016§8,2017;Ord.09-833 §4,2009) 5.70.060 Assignment of License Prohibited. The assignment of or attempt to assign any license issued pursuant to this chapter is unlawful and any such assignment or attempt to assign a license shall render the license null and void. (Ord. 17-1016§8,2017;Ord.09-833 §4,2009) 37 https://gcode.us/codes/westhollywood/ 1/9/2019 Chapter 5.70 Cannabis Uses 5.70.070 Noncompliance Prohibited. No person or entity shall dispense,distribute,sell,convey,exchange or give away cannabis in the city except in compliance with the provisions of this chapter and Sections 19.36.091, 19.36.092,and 19.36.093,of this code.Dispensing,distributing,selling, conveying,exchanging or giving away cannabis in the city without a business license is a misdemeanor punishable as provided in Section 1.08.010(a)of this code.Nothing in this chapter shall be interpreted to conflict with state law,including,without limitation, the Compassionate Use Act,the Control,Regulate,and Tax Adult Use of Marijuana Act(AUMA)and the MAUCRSA,as may be amended,and the rights granted to individuals for the adult-use and medical-use of cannabis under these state laws. (Ord. 18-1029§ 10,2018;Ord. 17-1016§8,2017;Ord. 10-851U§2,2010;Ord. 10-850§2,2010;Ord.09-833 §4,2009) 5.70.080 Adoption of Rules and Regulations—Violations. The City Manager may establish by resolution rules and regulations governing the operation of cannabis uses.Violation of rules and regulations shall,in addition to any other remedies contained in this code,constitute a misdemeanor and shall be punishable as set forth in subsection(a)of Section 1.08.010 of this code.Any person violating any of the rules and regulations adopted by the City Council shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of the rules and regulations is committed,continued,or permitted. (Ord. 17-1016§8,2017;Ord. 11-865 § 1,2011) 5.70.090 State Licenses Required. A cannabis business licensed and operating under this chapter shall at all times while operating have a current,valid state license for any and all activity which requires a state license under state law,including without limitation a seller's permit from the State Board of Equalization.The licensee shall post its state license in a conspicuous place.Failure to maintain and post a current, valid state license is grounds for revocation of a business license under this chapter. (Ord. 17-1016§8,2017) 5.70.100 City Fees. The City Council may adopt fees related to cannabis licenses. (Ord. 17-1016§8,2017) View the mobile version. 38 https://gcode.us/codes/westhollywood/ CITY COUNCIL STAFF REPORT TO: Honorable Mayor and City Council DATE: May 20, 2019 FROM: Matthew Bronson, City Manager PREPARED BY: Bruce Buckingham, Community Development Director A. Rafael Castillo, AICP, Senior Planner David Hale, City Attorney John Peters, Police Chief Steve Lieberman, Five Cities Fire Chief SUBJECT: Commercial Cannabis Update and Policy Issues RECOMMENDATION Receive an update on the implementation of the City's commercial cannabis ordinances and regulatory processes and provide direction to staff on related policy issues and potential ordinance changes. BACKGROUND In July 2016, the City Council directed staff to start working on a draft ordinance that would regulate commercial medical cannabis uses consistent with the Council's 2016-17 Goals and Work Program. Subsequently, the Council held meetings in August and September 2016 to provide staff direction on the framework for a draft ordinance that would allow and regulate commercial medical cannabis uses. The Council also placed Measure L-16 on the November 2016 ballot to establish a gross receipts tax on medical and non-medical commercial cannabis uses and a square footage tax on cultivation and the measure was approved by 70% of voters. The Council adopted an ordinance in February 2017 to formally establish the cannabis tax approved by voters in 2016. In May 2017, the City Council enacted ordinances to allow commercial medical cannabis uses in the city. The land use ordinance established requirements that allow medical cannabis uses, including cultivation, manufacturing, distribution, testing laboratories and initially up to two retailers subject to approval of a Use Permit (this limit was subsequently increased to four retailers). The regulatory ordinance established the regulatory framework for those uses subject to approval of a Commercial Cannabis Permit. On January 22, 2018, the Council began issuing Use Permits and Commercial Cannabis Permits for commercial cannabis businesses. In July 2018, the City Council further amended its commercial cannabis ordinances to include the following components: • Adult use (recreational) products for sales, manufacturing, cultivation, and distribution of commercial cannabis; • Type 2 volatile substance manufacturing (now referred to as Manufacturer 2); • Permit streamlining for commercial cannabis Use Permits, and • Updated Fire and Life Safety requirements for commercial cannabis uses. 39 With the Council's guidance and leadership, Grover Beach is establishing the commercial cannabis industry in a thoughtful, responsible, and safe manner. Given that it has been one year since the City's first commercial cannabis business began operating, staff is providing the Council with an update of the industry within the city including a summary of cannabis tax revenues generated and proposed regulatory costs and permit fees for next year. In addition, staff felt it was timely to evaluate the City's implementation of the commercial cannabis ordinances and identify potential policy issues and ordinance changes to reflect changing trends in the cannabis industry, State law, and regional activity. Below is a list of topics that staff has identified for the Council's input and direction followed by a description of each item after an overview of current businesses and the tax revenues and regulatory costs and fees: • Commercial Cannabis Permit issuance/renewals • Location of commercial cannabis deliveries • Municipal Code consistency with State law • Hemp regulation • Fire and Life Safety Requirements • Retailer operating hours • Retailer businesses with no storefront • Onsite consumption The Council and/or cannabis industry representatives may also raise other policy issues or ordinance changes not reflected on this list. Pending Council direction, staff would return to the Council at a future date(s) to present more refined information on one or more of these items and/or bring an amended ordinance reflecting changes identified by the Council. Overview of Commercial Cannabis Businesses within the City Since January 2018, the City Council and the Planning Commission have approved 26 Commercial Cannabis Use Permits with two Use Permit applications currently in process. There has been a decrease in application submittals from the peak of submittals seen in summer/fall 2018. Attachment 1 includes a map of commercial cannabis businesses located throughout the city and below is a breakdown of the commercial cannabis business types approved: • Four(4) adult/medical use retailers; • Seven (7) adult/medical manufacturers; • One (1) medical manufacturer; • Three (3) adult/medical distributors; • Two (2) adult/medical manufacturers and distributors; • Seven (7) adult/medical manufacturers and cultivation; • One (1) cannabis microbusiness (distribution, cultivation, and manufacturing); • One (1) testing lab. Of these 26 approved applications, seven business are currently operational including the following: • 805 Beach Breaks (Retailer) • Natural Healing Center(Retailer) Mary's Medicinal (Manufacturer) • The Hive/Highland Oil Company (Manufacturing / Distribution) • America's Best Cannabis (Distribution) • Gold Coast (Distribution) • Coastal Business Distribution (Distribution) 40 Additionally, the following businesses are under construction along with projected opening dates: • N-Fuzed (Manufacturing)—June 2019 • BS & RG Holdings (Manufacturing)—mid-summer 2019 • Lab Tested (Manufacturing/Distribution)—early fall 2019 • The Monarch/Urbn Leaf(Retailer)—early fall 2019 • CAMA (Manufacturing/Distribution)—schedule to be determined Staff is anticipating that additional facilities will be submitting for building permits this summer including the fourth retail permit not yet acted upon (Milkman). Additional facilities that will likely begin plan check within the next few months include two of the six vacant lots along Huston Street, the recently approved testing lab, and additional manufacturers that have been previously approved. Because of the economic importance of the commercial cannabis industry, staff has placed a priority in processing these applications. In some instances, such as the approved testing lab, staff was able to process an application submittal in under 60 days due to working with the applicant through a pre-application process, as well as, a growing familiarity on how to identify potential issues, including State licensing issues during entitlement review. Cannabis Tax Revenue and Regulatory Costs Staff wished to update the Council on the status and projections of cannabis tax revenues along with proposed regulatory costs and permit fees for FY 2019-20. As the Council is aware, the current cannabis tax rate is 5% of annual gross receipts for retailers and 3% of gross receipts for other cannabis businesses except for cultivators which are taxed at $5 per square foot based on floor area of the business. Cannabis tax revenues have been strong thus far and are projected to generate approximately $850,000 this fiscal year compared with the initial budget estimate of $700,000 and a revised mid-year estimate of $750,000. These revenues reflect the seven operating businesses identified previously and the City does not release tax generation by business due to confidentiality of business records. For next fiscal year 2019-20, the City is estimating $1.5 million in cannabis tax revenues which reflects the expected increase in the number of operating businesses. Cannabis tax revenues is now the third largest revenue source for the City after property and sales tax revenues and are general City revenues allocated by the Council to support City services and projects that benefit the community. For next fiscal year, staff is proposing direct cannabis regulatory program costs of approximately $377,000 along with select management oversight costs that would be charged out to cannabis businesses for full cost recovery through the annual permit fee as well as Live Scan and background check fees. These regulatory costs are an increase from the $300,000 budgeted this year and reflect additional activity expected from having 12-14 businesses operating over the course of the year. These activities include additional auditing services, staff time and supplies in working with cannabis businesses, legal services, and other direct costs. Staff is proposing nominal increases in staffing associated with this regulatory role including increasing the Cannabis Detective from 0.75 FTE to 1.0 FTE given workload and charging 50%of time for a new Sergeant position to oversee the Police cannabis regulatory function. The permit fee for next year for each operating business is proposed to be $19,000 plus a $6,000 audit fee for a total fee of$25,000 compared with the current fee range of$5,000420,000 based on the type of business (e.g. retailer fee is $15,000 and manufacturing fee ranges from $10,000- $20,000 based on gross receipts). Staff believes that having a fixed amount per business is warranted as the actual time spent on each business has been and is projected to be fairly similar and thus does not necessarily merit a range in amounts by type. In comparison, staff researched annual permit fees in other cities including Sacramento ($2,000-$36,000), Oakland ($2,000- $11,000), Woodland ($13,000-$46,000), San Luis Obispo ($65,000-$95,000), and San Jose ($150,000). The proposed fees will be included as part of the Master Fee Schedule presented to the Council on June 3 for consideration and action. 41 Commercial Cannabis Permit Issuance/Renewals To operate a commercial cannabis business within the City, the applicant must follow a two-step process that includes obtaining both a Use Permit, and a Commercial Cannabis Permit. Prior to the May 2018 ordinance amendment, the City Council approved both the Use Permit and the Commercial Cannabis Permit. As of May 2018, the Council approved streamlining the Commercial Cannabis Permit process by allowing the City Manager to approve Commercial Cannabis Permits for all cannabis businesses with the exception of Type 7, volatile solvent Manufacturer 2, which the Council must continue to approve. Based on the existing ordinance, the City Manager is required to mail a notice to surrounding property owners within 300-feet prior to approving the Commercial Cannabis Permit. Additionally, the City Manager must provide a minimum 10-day window prior to taking action on issuing a Permit. This notice is in addition to a notice that is required to be mailed out as part of the Use Permit approval. This could create confusion from residents and business owners because the notices, while similar, are for two different types of actions. The current process may also delay the ability of a cannabis business to start operating. As mentioned earlier, Manufacturer 2 (volatile solvents) requires City Council approval of a Commercial Cannabis Permit while Manufacturer 1 (non-volatile solvents) manufacturing only requires approval of the City Manager. Both types of manufacturing require the same level of review by staff, the Five Cities Fire Authority, and a report prepared by a Certified Industrial Hygienist (CIH). The inconsistency in the two processes creates confusion for applicants and the additional noticing requirements for City Manager approval of Manufacturer 1 takes longer to approve than Manufacturer 2 Commercial Cannabis Permit, although they have similar internal review processes. This could lead to delays in construction, as well as, operations of future commercial cannabis businesses. Commercial Cannabis Permits require annual renewals. These renewals include background checks for owners and employees, as well as, review of business operations, odor control systems, fire inspection, etc. The current ordinance requires a commercial cannabis permittee to file for a renewal 60 days prior to expiration, which runs contrary to typical renewals that require applicants or businesses to renew their permits up to the day it expires. Staff requests direction from the City Council on potential amendments to the processing and renewing Commercial Cannabis Permits including the following: • Modifying the process to allow the City Manager to approve and renew all Commercial Cannabis Permits including Manufacturing 2 rather than the current practice of some approvals by the Council and others by the City Manager; • Modifying language for renewals to allow commercial cannabis permittees to apply for a renewal on or before their permit expiration date. • Eliminate the requirement for the City Manager to mail notices prior to approving a Commercial Cannabis Permits since the current Use Permit process allows public input by surrounding property owners prior to taking action. Commercial Cannabis Development Code Revisions The Development Code contains standards for land development of commercial cannabis uses. Within this Code section, it states that "deliveries areas and loading / unloading areas shall be conducted within a secure area." For the majority of approved uses, the delivery areas have occurred within a building though in some instances the deliveries have been located to the rear or side of the building. However, the use of fences or other structures do not completely shield the deliveries and may cause a security risk. The Police Department recommends a standardized delivery method to only allow deliveries to be completed within a building and not in an open environment as the security measures of a cannabis facility are diminished when the deliveries do not occur in a secure setting. 42 During review on some submitted commercial cannabis applications, applicants have proposed to retain or construct "caretaker" residential units in the industrial zone. Both the Police Department and the Five Cities Fire Authority do not support retaining or constructing residential units associated with cannabis businesses. The Police Department believes residential units within cannabis businesses are problematic because they present a potential security issue with guests who would have access to a cannabis business without background checks. The Police Department believes that allowing residential units within the building or suite of a commercial cannabis business creates an environment for guests of the residential units to compromise the security of the commercial cannabis business through burglary or robbery opportunities. The FCFA has fire and life safety issues with caretaker residences within manufacturing, cultivation, and laboratories commercial cannabis businesses. Staff requests direction from the Council on potential amendments to the Development Code for commercial cannabis businesses: • Modifying the location of proposed commercial cannabis deliveries to occur inside a building; • Adding language to prohibit existing or proposed residential uses to be located within a commercial cannabis business. Municipal Code Consistency with State Law Staff's review of the commercial cannabis regulatory ordinance in Grover Beach Municipal Code Article III, Chapter 18, Section 4000.20 determined that a definition for "Cannabis Accessories" was missing. Staff proposes to bring an update to the definitions of the ordinance to include the State of California definition of cannabis accessories as outlined in Health and Safety Code 11018.2 which states; "Cannabis accessories" means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. Additionally, staff would recommend adding language to the ordinance consistent with State law to allow licensed commercial cannabis retailers to sell cannabis accessories in compliance with California Code of Regulation 5404 which addresses the age requirements for retail customers and 5407 which addresses permissions of a licensed retailer to sell such accessories. Hemp Regulation On a related note, recent federal legislation allows local governments to regulate hemp as an agricultural product and prospective applicants have contacted the City interested in hemp manufacturing. Given the complexity of establishing local regulations pertaining to hemp products, staff is proposing to return to the Council at a later date to discuss hemp regulations including the potential to produce a Fire and Life Safety Requirements document similar in nature to the commercial cannabis industry, but focused on hemp, botanicals (and other organic material) manufacturing. The industrial methods utilized for these other products are virtually identical in nature to processes and equipment utilized in cannabis manufacturing. Fire and Life Safety Requirements The Five Cities Fire Authority has reviewed existing Fire and Life Safety Requirements and based on first-hand experience with the industry and best practices utilized by other fire departments recommends the following modifications to the current requirements: • Certified Industrial Hygienist(CIH)responsible for submitting approved report for applicant will be required to be present during annual permit renewal inspection. This added 43 requirement will ensure that any changes in manufacturing, cultivation or laboratory processes or equipment will be included in an amended report. • Allow the use of a"licensed engineer"(mechanical, electrical, etc.) in addition to a Certified Industrial Hygienist (CIH)for expanded applicant flexibility. Pending Council direction, Five Cities Fire Authority would update the Fire and Life Safety Requirements and bring these to the Council for adoption at a future date. Retailer Operating Hours Staff has received a request from cannabis retailers to consider amending the closing time for operations for commercial cannabis retailers from the current 7:00 p.m. time to 9:00 p.m. The retailers believe that extending operational hours would generate more retail activity and subsequent sales and tax revenue. The Police Department originally recommended the 7:00 p.m. closing time to have the maximum number officers on duty in the event a situation took place at one of the retail establishments. Based on the limited service calls and operation of the two commercial cannabis retailers for nearly a year, the Police Department is open to extending operational hours if the Council provides such policy direction. However, the Police Department requests that if the hours of operation are amended, that retailers be required to install additional security cameras within the adjacent right-of-way as part of the City's community camera program as a public safety measure. These additional surveillance cameras would supplement the response of patrol officers within this area in responding to issues and assisting in investigations. The camera locations would be adjacent to the streets fronting businesses or at street corners deemed appropriate by the Police Department. Retailer Businesses with No Storefront The four retailers approved by the Council will all have a retail storefront (i.e., open to the public) and may also provide mobile delivery of their products to clients within and outside of the city. A Type 9 license is available from the State that allows for businesses to have a facility that is not open to the public that generate retail sales exclusively through mobile deliveries. San Luis Obispo County is only allowing Type 9 licenses and prohibiting retailers with storefronts open to the public. Recently, the County has approved two of these type of licenses in Oceano in an industrial area just south of the City's existing retailers. In April 2018,the Council discussed amending the cannabis ordinance to allow mobile businesses without a storefront located in the city but chose to not allow such businesses given the substantial investment made by the retailers with public storefronts. Staff wished to affirm this direction or receive direction to consider amending the cannabis ordinance to allow such mobile businesses. The following would need to be taken into consideration or further explored by staff if directed by the Council: • Number of potential mobile delivery licenses issued; • Upgrades to spaces consistent with adopted Industrial Design Guidelines and safety plans; • Process in which to allocate potential mobile delivery permits, whether to go back to older submitted applications for retail spaces or create a new selection process. Onsite Consumption Lastly, staff wished to bring back the topic of onsite consumption discussed with the Council in April 2018 to determine if the Council would like to consider this issue further. Staff has been conducting research on permitting facilities for onsite consumption of cannabis products (also known as a cannabis cafe/lounge) as a potential opportunity to broaden the cannabis industry in Grover Beach. State law currently allows for onsite consumption under limited conditions and prohibits sale or consumption of food, alcohol, or tobacco on the premises. Onsite consumption 44 currently is only allowed on the premises of a licensed retailer or microbusiness in conjunction with the retail license and is not allowed in a separate facility not adjacent to the retailer. San Francisco, West Hollywood, Palm Springs, Santa Ana, and Eureka are some of the municipalities that currently allow onsite consumption lounges with other communities beginning to explore the idea. There are no onsite consumption lounges currently within 200 miles of Grover Beach, leaving a gap and potential revenue source as the industry has expressed interest in establishing Grover Beach as a "cannabis tourism" destination similar to the wine industry. On a related note, one of the 26 recommendations in the forthcoming countywide Destination Management Strategy by Visit SLO CAL is to pursue cannabis tourism as one of many ways to attract visitors to our area. It is likely that as some nearby cities establish cannabis businesses such as San Luis Obispo and Morro Bay, there will be greater competition for cannabis businesses which could impact the City's cannabis tax revenues. Exploring the potential for onsite consumption would continue to develop the emerging cannabis industry within the city and create additional opportunities and revenue sources. City and FCFA staff have evaluated the potential for establishing onsite consumption lounges and reviewed existing ordinances in both San Francisco and West Hollywood, two municipalities were onsite consumption is allowed. City staff have toured facilities and discussed operational issues with various staff from those jurisdictions and determined that it may be feasible to allow onsite consumption as an additional retail commercial cannabis business, as the operations are similar to bars that serve alcohol. Recently, staff has learned that legislation (Assembly Bill 1465) has been introduced to amend State law to add an additional licensing process and allow for the issuance of a separate State regulatory license for operation of cannabis cafe/lounges. AB 1465 is currently making its way through the legislature as emergency legislation and would become law immediately if passed and signed by the Governor. Staff has discussed AB 1465 with the State Bureau of Cannabis Control (BCC) which indicated that the BCC is preparing to draft additional cannabis regulations to regulate cafe/lounges if AB 1465 is passed. The BCC has stated there would not be any issuance of cafe/lounge licenses until after their regulations were passed in addition to the passage of AB 1465. Further, BCC surmised that current cannabis lounge facilities that are in operation in several areas of the state will be impacted by the newly developed regulations and may have to adjust their current operations to become compliant with the new regulations. City staff requests direction from the Council on whether to further consider potential ordinance amendments to allow for cannabis cafes/lounges pending passage of AB 1465 and the regulations developed by the BCC. If the Council provided such direction, staff would produce additional analysis necessary to ensure a transparent process and establish milestones to completing a proposed amendment. The additional analysis could be brought back to Council for discussion this fall and include various issues such as location of cannabis cafes/lounges, parking requirements, transportation considerations, proximity to other uses, and other factors. FISCAL IMPACT Staff has estimated that the City's commercial cannabis tax will generate up to $2 million annually overtime as commercial cannabis businesses are established. The cannabis regulatory program is projected to cost an estimated $377,000 in 2019-20 and recommended to be paid for by cannabis permit fees. Staff will incorporate Council direction in finalizing these costs and permit fees as part of the FY 2019-20 budget. 45 ALTERNATIVES The City Council has the following alternatives to consider: 1. Receive an update on the implementation of the City's commercial cannabis ordinances and regulatory processes and provide direction to staff on related policy issues and potential ordinance changes; or 2. Provide alternative direction to staff. PUBLIC NOTIFICATION The agenda was posted in accordance with the Brown Act. Each of the permitted cannabis businesses have received a copy of this staff report. ATTACHMENTS 1. Commercial Cannabis Map 46 '• • 1 f T'NICE AVE f ,. 7M f 1` r I � F {. *t �0� City of Grover Beach y Commercial Cannabis Business Types r • t P7 .,...frw,"F" - oil AVE AVE Ci « \` _ _ r'r�r I— � arm � x J" � • � •� � I w , � _ __ i ( .�. / I, "��.. ; � ` it �t 1��t x _, ( _. Its •�c- p '44Rc J t x •� -7+'-��t s..� F•I � w .. 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J `.�-1 Grover Beach city Limits 417 +'0 . :y r �p���T— OPeratlonal Cannabis Business ILIy3'• /� _ _ •rt +'"1s ' Cannabis Business Under eonstrn"ion :• --'1 �,_,T r,I — Cannabis Business In Pro �* \ - r —I Ines Bess J-11 Cannabis Business Location Approved X - \ CALVIN CT — w �• ter••'' !IL .,9, �\ - o' _-_ - - ----- .: -. - ! +•-- ` _ HIGHLAND WAY 0 50100 200 300 40Feet „E• , 48 �r y / 6/11/2019 Home > Departments > Community Development > Planning > Commercial Cannabis Permits City of Grover Beach Commercial Cannabis Uses The City of Grover Beach has taken the lead in San Luis Obispo County in allowing both adult (recreational) and medical commercial cannabis uses in a safe and responsible manner. The City Council has identified the commercial cannabis industry as an economic development opportunity in its Economic Development Strategy and City Council Goals for fiscal year 2018-19. Beginning in 2016, the City Council held numerous public meetings that culminated in the adoption of the City's commercial cannabis ordinances in May 2017. Since then the Council has made several amendments to the ordinances, including allowing adult use in May 2018. The City has developed this cannabis webpage to provide potential cannabis businesses along with the general public with a guide to the allowable uses and locations within the city, current ordinances, permit application process, and the City's adopted cannabis tax structure. As of April 2019, the City has approved 25 cannabis businesses with seven businesses currently operating and several additional businesses currently in the planning process. Commercial Cannabis Uses Allowed The City allows adult and medical uses for manufacturing (volatile and non-volatile), distribution, cultivation within an enclosed building, testing laboratories and retail uses. There is no limitation on the number or type of uses except for retail uses, which are limited to four businesses. The Council has approved the four retailer permits; therefore, the City is currently not accepting applications for retail uses, with or without storefronts (i.e., mobile deliveries). Commercial Cannabis Ordinances The City has both a Land Use and a Regulatory Ordinance to implement commercial cannabis uses. The Larici Use_Orcinarce contains the regulations on the allowed locations, minimum setback and development standards which are contained in GBMC Article IX Development Code. The Regulatory_ Ordinance contains the regulations on licensing, permitting, security requirements, and operational requirements which are contained in GBMC Article III, Chapter 18. Commercial Cannabis Uses Zoning The City allows commercial cannabis uses in three zones: Industrial (I), Coastal Industrial (CI), and the Coastal Industrial Commercial (CIC) as shown on the City's Zoning Map. There are minimum setback requirements which can be found in Grover Beach Municipal Code (GBMC) Article IX Development Code, Section 4.10.045.F. Commercial Cannabis Tax In November 2016, voters approved Measure L-16 establishing a maximum tax rate for the City's commercial cannabis tax. In May 2018, the City Council adopted Resolution 18-40 which sets the City's current commercial cannabis tax rate as follows: • 5% of gross sales for retail uses. • 3% of gross sales for manufacturing, distribution and testing laboratories. • $5 per square foot of cultivation based on floor area of the business. Commercial Cannabis Permit Application Process All commercial cannabis uses require approval of a Use Permit (land use permit) and a Commercial Cannabis Permit (regulatory permit) in addition to a State permit in order to operate in the city. An applicant may process the Use Permit and Commercial Cannabis Permit concurrently as shown on the Cannabis Development Review Process Flowchart, listed below. There is no limit on the number of applications the City will accept for commercial cannabis manufacturing, distribution, cultivation, and testing laboratory uses. 49 www.grover.org/index.aspx?NID=333&PREVIEW=YES 6/11/2019 Grover Beach,CA—Official Website-Commercial Cannabis Permits The Use Permit Application forms and submittal requirement checklists are as follows: - Development Application Form - Authorized Agent Form, if applicable - Commercial Cannabis Indemnification Agreement Form - Development Permit & Use Permit Submittal Checklist - with Improvements - Cannabis Use Permit Submittal Checklist - Cannabis Development Review Process Flowchart - Environmental Information Form The Commercial Cannabis Permit Application forms and submittal requirement checklists are as follows: - Commercial Cannabis Permit Application Form - Commercial Cannabis Permit Submittal Checklist - Commercial Cannabis Employee/Owner Background Information Form The cost of processing a Use Permit and Commercial Cannabis Permit concurrently can vary based on the size and complexity of the proposed project. The City requires a deposit be submitted with the application which is an estimate based on the typical amount of staff time and other costs required to process an application. In the event the deposit is not sufficient to reimburse the City for processing the application, the applicant shall provide additional deposits to the City to complete the processing of the application. The current application deposit is $6,000 for a project within an existing building and $10,000 for a project that proposes constructing a new building. Further information about this deposit is included within the Development Application Form listed above. Commercial Cannabis Permits Approved by the City Manager The City Manager has approved the following Commercial Cannabis Permits, click here to view them. Fire and Life Safety Requirements The City Council has adopted Fire and Life Safety Requirements for commercial cannabis uses which require added fire and life safety requirements beyond the City's adopted California Building Codes for volatile and non-volatile manufacturing uses, cultivation, and testing labs. This will require the applicant to hire a Certified Industrial Hygienist (CIH) to prepare a report and certify the commercial cannabis business has implemented the recommendations of the CIH. The Five Cities Fire Authority is responsible for overseeing the implementation of these requirements. Commercial Cannabis Building Permit Process Typically once an applicant has obtained approval of a Use Permit, the applicant can proceed with submitting a building permit application to construct a building or tenant improvements. However, the City does allow applicants to proceed with the building plan check process prior to a Use Permit approval at their own risk. Below are the forms and submittal requirement checklists for submitting a building permit application. Note that some may not be applicable to your project. Building Permit Process Flowchart Building Permit Application o Construction Waste Management Plan o Owner Builder Information o Owner Builder Informational Brochure o Sub-Contractor's List o Water Conserving Plumbing Fixtures Affidavit Demolition Packet Curb, Gutter, and Sidewalk Checklist General Building Permit Checklist Grading and Drainage Checklist Development & Construction Stormwater Requirements Fire & Life Safety Requirements State of California Licensing 50 www.grover.org/index.aspx?NID=333&PREVIEW=YES 6/11/2019 Grover Beach,CA—Official Website-Commercial Cannabis Permits In order to operate in the City, an applicant must obtain all City permits as well as the appropriate State License. Here is the link to the E: c<;ti of ci-n zlhi- Corit r;l and CalCannabis Cultivation Licensing websites for more information about the State licensing process. Mobile Deliveries in the City from Retailers Not Located in the City The City allows legally licensed mobile delivery services from retailers not based in the city subject to issuance of a business Tax Cetlifir�,[c'.. An applicant must provide a copy of the State and local cannabis licenses to demonstrate that the mobile delivery business can legally operate within the city. Other Agencies Which May Require a Permit to Operate a Commercial Cannabis Business Prior to commencing operations, there may be other local agencies that require a permit for commercial cannabis uses. The following are several agencies that other applicants have been required to obtain a permit from depending on the type of use. • Air Pollution Control District San Luis Obispo County_ • Environmental Health, San Luis Obispo County • Water Board, Central Coast Region • Weights and Measures, Department of Agriculture For Additional Information or Answers to Frequently Asked Questions - Please see our: FAQs - Frequently Asked Questions on Commercial Cannabis in Grover Beach - Please contact the staff member or department as indicated below: Subject Staff Member or Department Phone and/or email Application Process Rafael Castillo, Senior Planner (805) 473-4528 Community Development Department or send an en;r:il Building Code Requirements Rafael Castillo, Senior Planner (805) 473-4528 Community Development Department or send an ernzail Fire & Life Safety Five Cities Fire Authority (805) 473-5490 or send an entail Live Scan and Background Checks Jerry Cornell, Detective (805) 473-4516 or send an en,� it Water and Sewer Connections or Lynn Pearson, Administrative Analyst (805) 473-4538 Street Improvements Public Works Department or send an er_a!1 51 www.grover.org/index.aspx?NID=333&PREVIEW=YES Taxation and Economic Development Speakers: Moderator: Jennifer Mizrahi, City Attorney, Desert Hot Springs/Quintanilla and Associates Panelists: Matthew Bronson, City Manager, Grover Beach Jackie Rocco, Business Development Manager, West Hollywood This section will focus on: • Realized local tax revenues • How to set up local sales tax • Enforcement of taxation • Other economic activity resulting from cannabis authorization 53 Taxation and Economic Development (continued) Reflections / Notes 54 Taxation and Economic Development Resources Printed Resources: "Cannabis Business License Screening Applications Top Scoring Applications," from City of West Hollywood "Grover Beach closer to lowering cannabis taxes," by Chris McGuinness (Article) "Grover Beach raking in tax dollars from cannabis business," by Alexa Bertola (Article) "Grover Beach 'on track' to meet cannabis tax revenue projections," by Chris McGuinness (Article) 55 CITY OF WEST HOLLYWOOD CANNABIS BUSINESS LICENSE SCREENING APPLICATIONS TOP SCORING APPLICANTS December 18, 2018 HollywoodME EMEMEMEN MEMOMMEMEMEM ONE 0 ME mom NONE mom City of West Californiawww.weho.org/cannabis WEST HOLLYWOOD CANNABIS BUSINESS LICENSE APPLICATION PROCESS On November 20, 2017, after significant members with diverse/unique perspectives community outreach, consultation with and a wide breadth of experience in cannabis industry experts, and City Council cannabis, hospitality, design, business, local discussion,the West Hollywood City Council government licensing, social justice, drug adopted a Cannabis Ordinance allowing a policy reform, as well as familiarity with West variety of different cannabis businesses to be Hollywood. In total, the weighting criteria licensed in the City. The ordinance included for each license type consisted of between the following type and number of cannabis 53 and 56 unique categories with a total of business licenses: between 200 and 205 points. ADULT-USE RETAIL: During the month of May 2018, applicants 8 licenses were allowed to submit cannabis screening applications to the City.The City received CONSUMPTION LOUNGE over 300 screening applications from over (Smoking, Vaping, Edibles): 120 different applicants (most applicants 8 licenses submitted applications in multiple categories).The application evaluation CONSUMPTION LOUNGE committee members began their review (Edibles Only): of applications in July and completed 8 licenses their review in late November. In total, each application evaluation committee DELIVERY SERVICES member reviewed over 20,000 pages, and (Located in West Hollywood): individually scored each application based 8 licenses on the weighting criteria. Once all of the application evaluation committee members MEDICAL DISPENSARY: were finished scoring,the five committee 8 licenses member scores for each application were averaged. The average scores for each As requested by the City Council the application type were then sorted from ordinance included a merit based approach highest to lowest. to selecting how the licenses would be allocated (as opposed to a lottery, or first- The top eight scoring applicants for each come first-served). license type are shown in the proceeding pages. Each of these applicants will be Interested applicants were required to able to move forward in the process of submit a screening application for each securing a business license from the City cannabis business license they were in the applicable categories. Only the top interested in applying for. Applicants could four applicants in the medical dispensary apply for more than one type of license, category were selected, because the City's but could not apply for more than one of ordinance allows the existing four medical the same type of license (for example;an dispensaries to maintain their medical applicant could apply for an adult-use, cannabis business licenses. medical dispensary, and consumption lounge license, but could not apply for two adult- We were truly impressed by the quality use licenses). Each screening application and caliber of the applications that the City required a description of the applicant's received. Many of the proposed businesses business plan (including, how their business were unique, innovative, and world class. model was innovative,their connection to We also want to say how excited we are West Hollywood, proposed operations, to soon have consumption lounges in the social equity, and product offerings), interior City, many of the top concepts will be the and exterior design concept, security plan, first of their kind in the country, if not the and experience. world. We want to express our sincere gratitude to all of the applicants for wanting As required by the ordinance an application to locate and do business in the City of evaluation committee were to independently West Hollywood, your participation and review and score each application based support of this process has helped to make on specific criteria and weighting (points it successful, and solidify the future success per criteria). The City Manager selected of the cannabis industry in West Hollywood. five application evaluation committee 57 � �T CITY OF • • • . APPLICATIONSCANNABIS BUSINESS LICENSE SCREENING TOP SCORING 1 ADULT-USE RETAIL • Aeon West Hollywood, Inc. (Aeon) • The Artist Tree, LLC (The Artist Tree) • CALMA Weho, LLC (CALMA) • Essence Weho, LLC (Essence) • J&P Consulting (Budberry) • PDLP JV, LLC (Greenwolf West Hollywood) • Pleasure Med, LLC (Pleasure Med) • Redwood Retail, LLC (Lord Jones) 10 CONSUMPTION LOUNGE (SMOKING, VAPING, EDIBLES) • Aeon West Hollywood, Inc. (Aeon) • The Artist Tree, LLC (The Artist Tree) • Essence Weho, LLC (Essence) • Flore Flora, LLC (Fiore) • HAH 10, LLC (Have a Heart) • PDLP JV, LLC (Greenwolf West Hollywood) • Pleasure Med, LLC (Pleasure Med) • Vanguard Concepts, LLC (Chroma) 19 CONSUMPTION LOUNGE (EDIBLES ONLY) • The Antidote Restaurant (The Antidote) • The Artist Tree, LLC (The Artist Tree) • ASHE Society, LLC • Door Number Six, LLC • J&P Consulting (Budberry) • Muthatree, LLC (Muthatree) • Ovest, LLC (Los Angeles Patients and Caregivers) • Where Eagles Fly, LLC (The Fantom Flower) 28 DELIVERY LICENSE • The Artist Tree, LLC (The Artist Tree) • CALMA Weho, LLC (CALMA) • Essence Weho, LLC (Essence) • J&P Consulting (Budberry) • PDLP JV, LLC (Greenwolf West Hollywood) • Pleasure Med, LLC (Pleasure Med) • Redwood Retail, LLC (Lord Jones) • Zen Healing Collective Corporation (Zen Healing) 37 MEDICAL DISPENSARY (Note:The Medical Dispensary category only includes four new licenses, because the existing four medical dispensaries in West Hollywood did not need to go through the screening application process to apply for a medical license). • Aeon West Hollywood, Inc. (Aeon) • The Artist Tree, LLC (The Artist Tree) • Pleasure Med, LLC (Pleasure Med) • PDLP JV, LLC (Greenwolf West Hollywood) 58 MATRIX OF TOP SCORING APPLICANTS APPLICANT NAME DBA CONSUMPTION • • DELIVERY ETAIL LUNGE • LOUNGE • � : EDIBLES)VAPING, ONLY) Aeon West Hollywood, Aeon • • • Inc. ASHE Society, LLC • CALMA Weho, LLC CALMA • • Door Number Six, LLC Door Number 6 • Essence Weho, LLC Essence • • • Farmacy Collective MedMen Weho • Flore Flora, LLC Flore • Green Cross Society A.H.H.S. (Alternative of Southern California Herba Health Services) • HAH 10, LLC Have a Heart • J&P Consulting Budberry • • • Muthatree, LLC Muthatree • Ovest, LLC LA Patients and • • Caregivers PDLP JV, LLC Greenwolf West • • • • Hollywood Pleasure Med, LLC Pleasure Med • • • • Redwood Retail, LLC Lord Jones • • The Antidote Restaurant The Antidote • The Artist Tree, LLC The Artist Tree • • • • • Vanguard Concepts, LLC Chroma • Where Eagles Fly, LLC The Fantom Flower • Zen Healing Collective Zen Healing Collective • • 59 ADULT- USE RETAIL • Description: Aeon's flagship West Hollywood location will be a modern Wellness _ Center equal to the new age of cannabis normalization. Aeon will reimagine the dispensary as an integrated cannabis and natural product marketplace, a health cafe, a social lounge for consuming _ cannabis,and a cutting-edge wellness center.Aeon's retail store will have contemporary interior designs showcasing natural materials and a love for Moroccan tea and culture. The wellness center will offer services from dietitians, naturopathic physicians, bodyworkers, and acupuncturists, and the open showroom will • display merchandise grouped by health goal. Wellness consultants • will provide recommendations, explain products' physiological _ effects, and advise regimens tailored to customer's health aims. Goods will feature barcodes on the exterior packaging,which will enable customers to learn about the product's formula and active • ingredients, cannabinoid profiles, and health data through digital screens throughout the store. Team: Founder and CEO Nicole Fox is a graduate of UCLA's nutrition and public health program and has extensive experience being a •'' '" I Registered Dietitian,working with patients to complement cannabis J. with food regimens and dietary supplements to alleviate headaches, insomnia or digestive issues. Nicole,with a handful of early operators, helped form the Greater Los Angeles Caregivers Alliance (GLACA). GLACA was instrumental in influencing the language for the City of LA's 2007 initial Medical Marijuana Interim Control Ordinance. Nicole has assembled a medical advisory board, and identified the educated wellness consultants who will join her in �i f launching Aeon. HIGHLIGHTS •� • Female founded company. Curated selection of premium A cannabis products sourced from • Product offerings fall into small local cultivators. � �. eight categories:(I)anti- aging and beauty, (II) Individual consultations, +; physical fitness, (III)mood suggested supplement regimens and emotional balance, (IV) and fitness plans for customers. cognitive performance, (V) pain 3 management, (VI)hormone The contemporary interior design stability, and (Vill)sleep. will use natural materials and is 1 inspired by the founder's love for Moroccan culture. 61 ADULT-USE RETAIL ArtistAPPLICANT The e e � 1 E - RUSINESS NAME The Artist Tree OWNERS Lauren Fontein, Mitchell Kahan, Avi Kahan, Alex Ganjian, Elmer f to Aguilar �viv Halimi • �_ Description: nnis Kahan The Artist Tree will be an immersive experience, a destination for cannabis learning, consumption, and art,with the motto of "Enhancing the Art Experience". The Artist Tree's vision is a multi- LOCATION unit commercial building with performance space, a restaurant, TBD bud bar, retail store, museum,and art gallery, all tied together by a large communal piazza. The exterior of the adult-use retail portion will consist of a facade using ecofriendly concrete, split face basalt OTHER CANNABIS stone, and glass. The interior of the space will consist of self-service LICENSES RECEIVED ordering stations spread throughout the showroom,with inlaid glass Medical Dispensary, Consumption sections,goblets(flower storage containers),and tablets. The retail Lounge • .• • Edibles), store will center on the Cannabis Learning Center(CLC), a cannabis museum and art gallery, showcasing works of local artists paired with Consumption • •' (Edibles fun cannabis memorabilia and informational displays. • Delivery Team: The Artist Tree owners Avi Kahan and Mitchell Kahan are veterans of the California cannabis industry. They collectively control two local Pre-ICO dispensaries,The Green Easy and Canto Diem. The Kahan brothers also have minority ownership in and are involved in two additional Los Angeles Pre-ICO dispensaries, California Compassionate Care Network(CCCN) and MMD. Lauren Fontein is r the head of product development and customer relations at edible !t product company Baked,where she supplies numerous Los Angeles area collectives. 1 HIGHLIGHTS �r. =� Design includes solar panels, Same day discounts to all use of daylighting,solar and patrons of The Artist Tree cross ventilation,and who show proof of attending a sustainable materials. performance,art exhibit or museum;staying at a hotel;or " 'wq Private consultation room for dining at a restaurant within consumers seeking personalized, West Hollywood. • private experience. 1' Location and development of the • The CLC will include a fully building will be led by South Park functional cultivation room, Group. x- where visitors can learn about w' cannabis production and watch the process in real time. 62 �i Description: CALMA,the Italian feminine noun, connotes peacefulness and • • • 000 • • tranquility. The CALMA boutique will focus on providing a tranquil and therapeutic experience, promoting the well-being of the West Hollywood community through a focus on education and customer- • • health. The boutique will aim to primarily serve City residents, 1 •- - incentivizing their patronage with local business partnership discounts and sustained participation in community programming. CALMA's extensive and curated product selection will help to set it apart.The high-quality, ecologically conscious cannabis products will appeal to West Hollywood's progressive and conservation-minded residents. Stringent due diligence and exacting quality control of operators,farms,farming techniques, extraction, and processing techniques will ensure that customers consistently receive high- grade products at the lowest possible price point. CALMA's facades will be pastels and tertiary complementary colors, recalling 80s revivalist tones derived from fashion trends and the sherbet colored works of the Italian design collective Memphis. Team: CALMA's management team consists of Jason Illoulian, CEO of Faring, a West Hollywood based, real estate development firm, and Cobby Pourtavosi,owner and operator of several businesses and a variety of cannabis-related enterprises. Mr. Pourtavosi has ' owned and operated a variety of cannabis-related enterprises over the last 12 years, including six retail operations, an indoor growing facility, and a THC/CBD oil manufacturing firm. Mr. Pourtavosi is an owner of the Green Goddess medical and adult use retail dispensary in Venice, CA. Both members of CALMA's ownership team are longtime West Hollywood residents and business owners. _ HIGHLIGHTS • Partnership with community • Diverse and vibrant variety of and neighborhood watch cannabis products. groups, including participation in various City events. • Support for small cannabis (LA Pride Parade& Festival, cultivators and small canopy National Night Out etc.) growers. • Will subsidize LA Metro transit passes for employees Ar s and encourage staff and customers to use alternative transportation. rt 63 i' 1 f �!S" APPLICANT � a Essence • LLCBUSINESS NAME i-) •' H }Essence C c j OWNERS Alejandro Yemenidjian, Armen Yemenidj1an and Brian Greenspun Description: Essence is currently one of the leading dispensaries in Las Vegas, LOCATION (ADDRESS) but Essence's West Hollywood wellness center will be its West Coast flag ship location. The center will focus on inclusiveness TBD and experience,while combining social responsibility, activism, aesthetics, fun, and sexiness into one special space. The design of Essence WeHo will draw on West Hollywood's Prohibition Era • history of speakeasies. The adult-use retail store will be accented by LICENSES RECEIVED brick veneer, natural wood and rotating exhibitions of art. Essence Delivery • Consumption Lounge will create a cannabis resource and community center within the (Smoking, .• • Edibles) adult-use retail store that offers cannabis education material and informational materials on upcoming events. Patrons will not only have access to high-quality cannabis products, but also one-on-one consultations to discuss potency,terpene profiles, best practices and supplemental instructions regarding cannabis use. J Team: �► L- Armen Yemenidjian has extensive experience in Nevada's cannabis community. He was named as one of the top 100 most influential people in the world of cannabis in 2018 by High Times. During his leadership, Essence was named the number one dispensary in Nevada by Business Insider and number twenty two in the nation. Essence has also been named "Best Dispensary" 17 times by Leafly. 'I *7 i • HIGHLIGHTS f • High-quality cannabis products. • Registered nurse on site • Access to yoga, comedy nights, • Cannabis Resource and private parties,and education Community Center. and wellness workshops. • Commitment to empowering • One-on-one consultations to small cannabis cultivators. discuss potency,terpene profiles and healthy-use habits. lJ 64 � r V r.. pr, wI i • • • . . • Description: Budberry will feature a dual-venue adult use retail cannabis store and cannabis consumption lounge with an emphasis on customer service, a technology-driven delivery service, range of top-quality • products sourced locally and produced in-house, innovative luxury aesthetics, and an open kitchen featuring an acclaimed cannabis chef. On-site Budberry will extract and infuse edible products using • • • • •' • • - a proprietary, non-volatile extraction process known as Freel-eaf, • - which deep cleans cannabis to create odorless,virtually tasteless, strain-specific cannabis oils and cannabis butter for cooking. Design will focus on creating an intimate, entertaining, and inclusive facility with a stylish edge. Budberry will engage local artists,furniture designers, and florists to create a design that is truly rooted to West Hollywood. Team: Jon Locarni and Patrick Fogarty are co-founders of Budberry. Combined they have decades of experience in operation, • dq J management and the cannabis industry. In early 2016,Jon and Pat �� made a commitment to helping cannabis businesses comply with �! 1 regulations by implementing financial and operational procedures. 1 - 1 HIGHLIGHTS • _ � Plant-to-table products. Odorless and virtually tasteless nature of cannabis oils and • While shopping for and enjoying butters. Budberry's locally sourced �•`�iI' 4dlli' �`II .. . and name-brand products, Incorporating local art and .' r customers will be educated working with local artists. and entertained by outstanding culinary cannabis • Top quality products that are demonstrations. locally sourced and produced • in-house. r 65 � � f •GREENWOLF- • Description: Greenwolf will serve West Hollywood as an all-inclusive mecca for cannabis, gourmet upscale dining, and must-see social life. Greenwolf will be located at 8535/8537 Sunset Blvd in a building • • . . with an enclosed courtyard that backs onto the Hollywood Hills. - • The retail space will be understated and modern,evoking a sense of confident professionalism that will appeal to elevated sensibilities with packages displayed on open shelving and high-end samples • displayed under glass. The adult-use retail operation will offer patrons a curated service complemented by cannabis sommeliers that will bring extensive knowledge of cannabinoids and terpenes, and their effects. Greenwolf's cannabis sommeliers will recommend products based on customers interests,self-identified patient • conditions and past purchases. Team: CEO Sol Yamini has owned and operated Pink Dot on the Sunset Strip since 2004, a retail hub and delivery service that includes alcohol and tobacco, both of which are strictly regulated. He is also an active member of the West Hollywood Chamber of Commerce and the Sunset Strip Business Improvement District. Elizabeth Caffrey is currently the owner/director of affiliate Los Angeles t dispensary Greenwolf and Bernie Bregman currently has a leading + role in the California cannabis firm LoudPack. HIGHLIGHTS • Preferred vendor system which - Educational events will be hosted alerts customers to products by Mary Jane University. from small, minority-owned, and environmentally-conscious - Reporting system will track the cultivators. environmental certifications of - the growers,track the size of the - Staff will attain Americans for cultivation facility,and whether or Safe Access(ASA)Patient- not the product supplier is Focused Certification (PFC). minority owned. - Greenwolf will offer staff paid volunteer days,competitive t benefits,and educational incentives. 66 .Ye. 4 1 - -•- Description: ' ' ' ' - PleasureMed will bring to fruition an idealistic vision-to establish • . an enduring cannabis boutique in West Hollywood with an emphasis on health and wellness benefits. PleasureMed will include retail, medical, delivery, and a roof top consumption lounge. The high- end retail environment will combine a range of product offerings and educational resources that will cater to all levels of consumers. _ PleasureMed will source the highest quality cannabis and will emphasize organic options for patrons, in addition to carrying cannabis and derivative products sourced from small cannabis •- producers. PleasureMed's interior will be designed to create a museum-like setting with high ceilings, decorative beams, crawling greenery and ornamental arched windows. Team: For over two decades Brian Robinson has owned and operated The Pleasure Chest, an adult entertainment retailer located in West Hollywood. Under his direction,The Pleasure Chest has grown to five locations, including West Hollywood,Chicago and New York. Its ; As 19 In addition to Mr. Robinson,the advisory board of PleasureMed :x:;;z� '� ; i •' will include Martin O'Brien, Soren Gray and Dr. Sherry Yafai. Mr. • �=r •`y c a O'Brien is the founder of the Berkeley Patient's Care Collective and Foxworthy Red (a licensed cannabis cultivation company in Sonoma �. �---•-� County). Mr. Gray brings experience as the General Manager of Sunset Junction Organic Medicine(a cannabis dispensary located in Silver Lake). Dr.Yafai is a Board-Certified Emergency Medicine practitioner. She specializes in holistic medicine and natural • remedies, including the application of medicinal cannabis. HIGHLIGHTS Roo m Seminars and hosted events to Havana Apothecary themed educate consumers on Cannabis design and focus,accenting �' - :n••.as..aa L.� use medical and homeopathic In addition to onsite workshops, remedies. ' patrons will also be given -•�-ice _ "' - educational and informational Pleasure Chest is ranked#15 a Ye f:ra+ ,/ ! � k brochures. bh,.._- .� on TripAdvisor's list of West Hollywood attractions. 67 ADULT-USE RETAIL APPLICANT Redwood Retail, LLC Lord Jones a ; BUSINESS NAME " OWNERS Robert Rosenheck, Gotham Fund, Cynthia Capobianco, Mohammadi, Alan Rader and Rebecca Description: West Lord Jones will be the world's first hotel based cannabis boutique and delivery service. The boutique will be located inside The Standard hotel on the world famous Sunset Strip, and will sell OCATION (ADDRESS) Lord Jones's unique and luxury products that are currently sold The • • 11 Sunset Blvd.) in hundreds of stores throughout the country. The Lord Jones Cannabis Boutique will offer customers a unique shopping experience with special attention to education, product variety, and OTHER CANNABIS quality. Staff at the Lord Jones Cannabis Boutique, or"Wellness LICENSES RECEIVED Representatives," will be trained to provide extraordinary customer Delivery service. Lord Jones confections are made by hand in small batches with high quality ingredients including single origin Ecuadorian dark chocolate and imported natural European fruit essences. Team: Mr. Rosenheck is an environmental leader and award winning brand strategist, creative director and product developer,with decades of experience in state-regulated industries. Ms. Capobianco served as a senior executive for U.S.fashion brands, including Donna Karan and Banana Republic, before becoming Vice President of Global Marketing at GAP. Ms. Mohammadi, a former special assistant to Governor Arnold Schwarzenegger, is also a seasoned operations manager. Together the three operated the Hollywood Hills Wellness Association, a medical cannabis collective. Mr. Rader spent the l first fifteen years of his career providing legal service to low-income communities and the next twenty five years,as a litigating partner at j law firm O'Melveny and Myers. HIGHLIGHTS nee @Wi 4 r • State of the art online Products have been featured ordering system and white- in numerous publications o Q 0 glove delivery service. including New York Times, Los Angeles Times,Vogue, Q Product sourced from, Forbes, Fast Company, Flow Kana a pioneer in Harper's Bazaar and more. environmentally conscious, sustainable,and organic • Boutique will include cultivation. g environmentally conscious s ` design and alternative energy sources. ilr "!_ • 68 vow I i! 9 CONSUMPTION LOUNGE (Smoking, Vaping, and Edibles) z L. .-Am • Description: • • • •" • Aeon's flagship West Hollywood location will be a modern Wellness • • Center equal to the new age of cannabis normalization. Aeon will i reimagine the dispensary as an integrated cannabis and natural product marketplace, a health cafe, a social lounge for consuming • • cannabis, and a cutting-edge wellness center. The consumption lounge will showcase a love for Moroccan culture that honors the Maghreb tea hour and the rituals that accompany it. The lounge will be complemented by a sophisticated cafe, offering exotic teas and • biscuits from around the world along with terpene-infused cocktails, fresh juice and kombucha served in crystal. The cafe and lounge _ will sponsor health-related community workshops and lectures • • designed to reinforce Aeon's wellness message. Patrons will enjoy •" the privilege of purchasing cannabis products from the food menu or will take advantage of the more limited selection for tableside delivery. Team: Founder and CEO Nicole Fox is a graduate of UCLA's nutrition and public health program and has extensive experience being a Registered Dietitian,working with patients to complement cannabis with food regimens and dietary supplements to alleviate headaches, insomnia or digestive issues. Nicole, with a handful of early J operators, helped form the Greater Los Angeles Caregivers Alliance (GLACA). GLACA was instrumental in influencing the language __�• �� for the City of LA's 2007 initial Medical Marijuana Interim Control A Ordinance. Nicole has assembled a medical advisory board, and identified the educated wellness consultants who will join her in = launching Aeon. Z ! HIGHLIGHTS • Female founded company • Dail performances b YP Y • Mornings will consist of early musicians and DJ's that morning yoga and mindfulness specialize in Moroccan music classes. and culture. • Aeon kitchen will offer seasonal • The use of laptops and and locally sourced cellphones will be discouraged, in order to nourish human Mediterranean fare. connection based on t immediate, personal Offering free health services conversation. such as ear acupuncture and 4` chair massages biweekly at Helen Albert Farmer's Market. j t�, 70 PPIF .. . . • • - - _ . . Description: • _ The Artist Tree will be an immersive experience, a destination for cannabis learning, consumption, and art, with the motto of "Enhancing the Art Experience". The Artist Tree's vision is a multi- a _ unit commercial building with performance space, a restaurant, bud bar, retail store, museum, and art gallery, all tied together by a large communal piazza. The consumption lounge contains a bud bar, restaurant and stage. The stage will showcase local musicians, comedians, and others(Karaoke night and Drag contests). The • lounge will have comfy couches, restaurant style seating and a bud bar, with full waiter service. It will include floor to ceiling windows,to create a bright, open feeling during the day and a cozy, streetlight feeling at night. Team: The Artist Tree owners Avi Kahan and Mitchell Kahan are veterans of the California cannabis industry. They collectively control two local Pre-ICO dispensaries, The Green Easy and Canto Diem. The Kahan brothers also have minority ownership in and are involved in two additional Los Angeles Pre-ICO dispensaries, California Compassionate Care Network(CCCN) and MMD. Lauren Fontein is the head of product development and customer relations at edible product company Baked, where she supplies numerous Los Angeles area collectives. Akasha Richmond will serve as chef < and restaurateur, she is currently the executive chef and owner of AKASHA in Culver City. HIGHLIGHTS • Products will be rigorously Designs incorporate several -� tested for potency and will not eco-friendly aspects,such as contain any pesticides. solar panels, recycled materials, • Lounge will include an outdoor and sustainable zinc panel patio where only vape smoking fagades. will be allowed,to prevent Same day discounts to all odors from escaping the patrons of The Artist Tree premises. who show proof of attending a performance, art exhibit or f In addition to edibles,the museum; staying at a hotel;or ( lounge will offer inventive ► (cannabis free) bar foods to dining at a restaurant within satisfy patrons cannabis-induced West Hollywood. cravings. 71 f • • • tM � I f � • +•rF Description: Essence is currently one of the leading dispensaries in Las Vegas, • but Essence's West Hollywood wellness center will be its West Coast flag ship location. The center will focus on inclusiveness and experience,while combining social responsibility, activism, ` • - '- - • - aesthetics,fun, and sexiness into one special space. The design of Essence WeHo will draw on West Hollywood's Prohibition Era history of speakeasies. In the Essence Lounge, customers will have access to a variety of unique activities and events including comedy nights, private parties, yoga, cannabis education and wellness workshops and art programs. Patrons will not only have access to high-quality cannabis products, but also one-on-one consultations to discuss potency,terpene profiles, best practices and supplemental instructions regarding cannabis use. _ Team: Armen Yemenidjian has extensive experience in Nevada's cannabis community. He was named as one of the top 100 most influential people in the world of cannabis in 2018 by High Times. During his leadership, Essence was named the number one dispensary in Nevada by Business Insider and number twenty two in the nation. -" - Essence has also been named "Best Dispensary" 17 times by Leafly. HIGHLIGHTS _ ' :. - High-quality cannabis products. Cannabis Resource and Community Center. Access to yoga,comedy nights, private parties,and education Commitment to empowering and wellness workshops. small cannabis cultivators. F - One-on-one consultations to discuss potency,terpene profiles and healthy-use habits. 72 4. • • -Prop • - - • ••• r ff i 1 1 i Description: • Fiore will be a farm to table food and flower cafe to learn about and celebrate cannabis. The bright and airy oasis will be lined with Moroccan and Spanish tiles, running fountains, and historic photos of cannabis and West Hollywood. The seasonal menu can be virgin, or infused with 1-10 mg of THC or CBD. Extensive non-alcoholic beverages will also be offered (fine-teas, single-origin coffees, fresh juices and smoothies), and Flower Hosts will be available to deliver cannabis to your table for smoking (Flower Service). Team: '. Executive Chef Andrea Drummer has run a successful business serving infused foods to thousands of guests for the last six years, and has also worked for Michelin starred chefs, such as Thomas Keller. Renee Nahum, a longtime community organizer and advocate will be the public face of Flore. Richard Brenner, COO r 4 ' of Hugo's in West Hollywood, will oversee kitchen and dining �T. r operations, and Brett Vapnek of Perennial Holistic Wellness Center will be responsible for cannabis operations and flower sourcing. >' ;�,,• '4 � T HIGHLIGHTS Farm to Tableside Cannabis Reducing Environmental Flower Service Footprint- Fiore will account for its resource Virgin and Infused (1-10 mg footprint entirely THC or CBD)Farm to Table Foods Daily events will be +• a offered, including Sunday Extensive outreach to neighbors; High Tea. �'� •� �r � including door-to-door outreach, 24hour hotline,community « liaison,and community discounts �_' 73 .J t t a f- , • Description: • ' The Fire Lounge will be located on the Sunset strip and will offer a high-end experience. The lounge will be on a mezzanine and roof deck that will feature the integration of a smoke-free restaurant and licensed cannabis consumption area in the form of "Valkyrie". The • • • • full service restaurant will offer West Hollywood an al-fresco dining _ • ••• _• experience featuring local, organic ingredients with farm-to-table preparation. Customers will have the option of enhancing their dishes with CBD and THC infused dressings and sauces, natural • agave sweeteners, and wellness shots. During the day,the Fire Lounge will be a true smoker's paradise overlooking the Sunset Strip and the City of West Hollywood. In the evening the hip cannabis lounge and supper-club will transition from providing high-end menu items to offering a social experience with DYs, as well as live performances in music, comedy, and spoken word. Team: Owners include Vered Nisim, a local businesswoman, philanthropist, community activist and consultant for cannabis brands, CBD companies and the hemp industry, and Ryan Kunkel, the Founder &CEO of a Washington based cannabis company, Have a Heart Compassion Care. The team includes the expertise of one of High Times Magazine's 2018 Top Ten Most Influential People in t Dispensaries,two nightclub/restaurant impresarios from West r • Hollywood, and Hollywood respectively, and an award-winning Executive Chef who is a superfood expert and contributing author of the New York Times' Bestseller The Cannabis Kitchen Cookbook. r HIGHLIGHTS Each menu item has the option be given to all consumption to be served with Valkyrie lounge guests who purchase Kitchen CBD,THC or THC/ and use cannabis at the CBD Full Spectrum Infused location. \� _ Ingredient. • Technologically-driven VIP —— Specially-designed retractable room and cannabis-themed walls,converting the Lounge virtual reality playground (Fire into an event space for live Lounge). • '� performances, movies and other productions. Premium breakfast, brunch ,• 6. and lunch items as well as `ft; �'"' y • Lyft coupon codes for a free freshly made juices and tt1.r16 '1 ride home within 5 miles or smoothies provided by Valkyrie _ ►��(: credit toward a longer ride will Kitchen. • 74 _ I r • GREENWOLF- Description: Greenwolf will serve West Hollywood as an all-inclusive mecca for cannabis, gourmet upscale dining, and must-see social life. • • ' ' " Greenwolf will be located at 8535/8537 Sunset Blvd in a building with an enclosed courtyard that backs onto the Hollywood Hills. Greenwolf West Hollywood's consumption lounge and intimate event space will feature a courtyard for communal enjoyment of • smoking, vaping and infused edibles. The dining experience will combine seasonal, gourmet meals with artisanal cannabis pairings, and handcrafted non-alcoholic beverages. Cannabis pairings will be developed by the minds behind Moonlit Moveable Feast and High • • - Dining; guests will enjoy a unique blend of traditional fine dining and sophisticated modern cannabis consumption. The design will consist of communal tables, sustainable fixtures, native California vegetation and natural lighting. Team: CEO Sol Yamini has owned and operated Pink Dot on the Sunset Strip since 2004, a retail hub and delivery service that includes • alcohol and tobacco, both of which are strictly regulated. He is also • an active member of the West Hollywood Chamber of Commerce and the Sunset Strip Business Improvement District. Elizabeth Caffrey is currently the owner/director of affiliate Los Angeles dispensary Greenwolf and Bernie Bregman currently has a leading role in the California cannabis firm Loud Pack. Seth Glassman will help lead the lounge, bringing his expertise from restaurants BOA, Katana, and Pistola. HIGHLIGHTS • Special menu nights with guest • Staff will attain Americans for chefs and menus based on Safe Access(ASA) Patient- ` "'••••... different flower offerings. Focused Certification (PFC). • Workshops on how to cook with � Greenwolf will offer staff paid ` • i ^/ cannabis. volunteer days, competitive ' benefits, and educational Designated preferred products incentives. ?`•: will be made without the use of ' pesticides,or,harmful or inorganic chemicals. 75 IL_ 4 As Description: PleasureMed will bring to fruition an idealistic vision—to establish • • an enduring cannabis boutique in West Hollywood with an emphasis on health and wellness benefits. PleasureMed will include retail, medical, delivery, and a roof top consumption lounge. The • consumption lounge will be encompassed by dark grey earth toned walls that are covered with crawling greenery. Patrons will enter the • _ . _ _ - • patio by stepping onto stabilized decomposed granite paving that -• •-- lead to the cafe. The menu will consist of local brewed coffee, with, or without, a cannabis infused honey stick, infused and non-infused pastries, as well as other cannabis and non-cannabis confectionaries. PleasureMed will source the highest quality cannabis and will emphasize organic options for patrons, in addition to carrying cannabis and derivative products sourced from small cannabis producers. t= '� Team: For over two decades Brian Robinson has owned and operated The Pleasure Chest, an adult entertainment retailer located in West �y Hollywood. Under his direction,The Pleasure Chest has grown to five locations, including West Hollywood, Chicago and New York. �. In addition to Mr. Robinson,the advisory board of PleasureMed will include Martin O'Brien, Soren Gray and Dr. Sherry Yafai. Mr. O'Brien is the founder of the Berkeley Patient's Care Collective and Foxworthy Red (a licensed cannabis cultivation company in Sonoma County). Mr. Gray brings experience as the General Manager of Sunset Junction Organic Medicine(a cannabis dispensary located in Silver Lake). Dr.Yafai is a Board-Certified Emergency Medicine practitioner. She specializes in holistic medicine and natural remedies, including the application of medicinal cannabis. HIGHLIGHTS "s all Seminars and hosted events to Havana Apothecary themed u� educate consumers on Cannabis design and focus,accenting r` 1use. medical and homeopathic 1 � remedies. — • In addition to onsite workshops, (' - _ _ ��• patrons will also be given Pleasure Chest is ranked#15 - — — educational and informational on TripAdvisor's list of West brochures. Hollywood attractions. 76 i • Description: Chroma Social Lounge will feature 3,500 SF of lounge and • - • restaurant space that has the modern green feel of an arboretum. • - ••- - • • Chroma will be a unique cannabis hospitality experience, featuring •- a culinary program rivaling any mainstream dining concept and a cutting-edge cannabis consumption program built around curated pairings, small-batch and local cannabis products, and innovative, • • - non-alcoholic cannabis-infused beverages.The interior will contain diffused lighting,warm finishes and low, comfortable seating. The patio at Chroma will be wrapped around an olive tree bathed in string lights, accented by cabanas, low profile loungers, and fire pits. • In partnership with Altered Plates, Chroma will provide a unique culinary cannabis experience by offering science-based infused beverages alongside non-infused food. The food and beverage team will also work to pair specific strains of cannabis with the restaurant's dishes. Team: The founding partners of Chroma include Trent Doucet, Ninaz Khorsandi, Nazanin Lahijani, and Sohila Rezai,together they have a wide range of experience including cannabis cultivation, cannabis law, and entrepreneurship. The operator, Robert Ancill, has overseen the launch of numerous brands, and hundreds of restaurant and cafe openings and remodels. General Manager, Jessica Schmidt has over a decade of experience serving as the operator and general manager of restaurants including 101 Coffee Shop, Little Dom's, and Dominick's.The Executive Chef and Chief Mixologist are comprised of a brother-sister team consisting of Chef Holden Jagger and Rachel Burkons. Their award winning culinary cannabis company,Altered Plates, has roots across the West Hollywood and LA hospitality industry. HIGHLIGHTS ,tom • Cannabis cocktail cart and Water-based cannabinoids t cannabis flower service. to create Cannabis cocktails (cannabis infused non- • All guests will be issued a alcoholic cocktails). membership card to track all ( cannabis orders and Commitment to sourcing consumption via TREEZ. products that are Clean Green Certified and • Commitment to have the sustainable farming. aggregate workforce consist of at least 25%West Hollywood residents. 77 \ - r� CONSUMPTION LOUNGE (Edibles Only) ro CONSUMPTION LOUNGE • • Only) ^ I ��APPLICANT l The y . ; Antidote Restaurant, _- BUSINESS NAME The Antidote OWNERS Edgar Khalatian, Richard Kirk Cartozian, and Adrian • Description: • • The Antidote will provide its customers with a welcoming environment that offers a diversity of experiences within its space. TBD Designed as a multi-room concept, including a large dining room with traditional restaurant seating, a lounge area with communal OTHER seating and on-site consumption, the Live Stream room, and a LICENSES RECEIVED private room for culinary cannabis classes. The exterior design of The Antidote will embrace a decadent and stylish bohemian design aesthetic. From private cannabis pairing dinners and infused fine dining experiences, to CBD mocktails and brand education, the Antidote will offer an array of selections and choices to its patrons. 100%of all the cannabis sold will be naturally produced without use of pesticides or harmful inorganic chemicals. Team: Adrian Amosa and Kirk Cartozian bring years of experience in the restaurant, entertainment and hospitality industry. Their most visible brand is Gaucho Grill Argentine Steakhouse. Adrian has over a decade of experience operating Gaucho Grill restaurants while Kirk has over 10 years of experience representing clients like Porto's Bakery and playing an integral role in their expansion within Southern California. Edgar Khalatian is a practicing attorney with significant cannabis experience, including assisting clients with understanding and complying with state cannabis regulations. Richard Lichtenstein is the founder and president of Marathon Communications, a local public affairs and strategic communications firm that has worked extensively in West Hollywood since 1982. HIGHLIGHTS • Commitment to purchase all The Antidote will also donate cannabis products from small- 10%of its profits to non-profit scale cannabis cultivators. organizations either located in - West Hollywood or that serve • The Antidote will pay full wages the city's population. to all employees to perform 40 hours of community work in Working with Lyft to provide West Hollywood each year. customers with a heavily _ discounted (or free)ride to and —-+•: from The Antidote. 79 CONSUMPTION LOUNGE • • Only) tom• �• 6 ?TtThe Artist Tree LLC APPLICAN - - BUSINESS NAME The Artist Tree Y' • __ -i OWNERS Lauren Description: • ll The Artist Tree will be an immersive experience, a destination AguilarKahan, Alex Ganjian, Elmer for cannabis learning, consumption, and art,with the motto of Aviv Halimi and Dennis Kahan "Enhancing the Art Experience". The Artist Tree's vision is a multi- unit commercial building with performance space, a restaurant, bud bar, retail store, museum, and art gallery, all tied together by a large • • N (ADDRESS) communal piazza. The stand-alone consumption lounge's facade TBD will consist of zinc interlocking panels, smooth concrete, and glass windows to create a feeling of transparency. Visitors will enter the lounge via a welcoming courtyard, which will serve as a relaxing OTHER CANNABIS area for sitting, socializing and viewing art. The edible consumption lounge will serve both cannabis infused edibles and cannabis free LICENSES RECEIVED cuisine. • - Retail, MedicalDispensary,• • • • •" (Smoking, Team: Vaping, Edibles), • DeliveryThe Artist Tree owners Avi Kahan and Mitchell Kahan are veterans of the California cannabis industry. They collectively control two local Pre-ICO dispensaries, The Green Easy and Canto Diem. The Kahan brothers also have minority ownership in and are involved in two additional Los Angeles Pre-ICO dispensaries, California Compassionate Care Network(CCCN) and MMD. Lauren Fontein ".� is the head of product development and customer relations at Ii edible product company Baked, where she supplies numerous III' Los Angeles area collectives. Akasha Richmond will se rve as chef and restaurateur, she is currently the executive chef and owner of AKASHA in Culver City. Z ' HIGHLIGHTS r • Products will be rigorously Alex Ganjian,owner of West n. tested for potency and will not Hollywood restaurant Dough contain any pesticides. Pizzeria& Bar,will also be a part of the team. • The menu for the restaurant a will consist of globally inspired Designs incorporate several California cuisine with both eco-friendly aspects,such as health conscious and decadent solar panels,recycled materials, options. and sustainable zinc panel fa4ades. p M T • The restaurants cannabis free 1 options will be paired with their vast selection of edibles- ' whether a lemonade,chocolate bar, or macaron. � �� 80 CONSUMPTION LOUNGE Only) ONO APPLICANT ASHE Society, LLC BUSINESS NAME ASHE Society UWNERS Elaine Lu Description: LOCATION (ADDRESS) ASHE Society is a female run cannabis business that is centered on TBD advocacy, social equity, health and education. ASHE's dedicated team of cannabis connoisseurs are equipped with the knowledge to answer questions regarding location of origin,terpene profiles, OTHER CANNABIS onset time, potency, biological symbiosis and safety precautions. The product menu will be carefully curated through a rigorous LICENSES RECEIVED selection process. ASHE will also offer a variety of curated plant- based beverages to mitigate any uncomfortable side effects of cannabis. The proposed interior experience will be green, sustainable, healthy and luxurious. The entry will feature a large plant wall,disguised through fitted glass in a clean and light filled space. Team: Five women with varying backgrounds and expertise formed ASHE. Owner Elaine Lu is a seasoned marketer transitioning from the corporate world into the cannabis industry. Kim Kelley is the Executive Director and is a cannabis small business owner with a t passion for community advocacy and healthy cannabis use. The A L ,, Director of Marketing and Sales, Ylsa Tellez, is a founding member of the Spliffin Group, a THC concentrate company. Tamika Fraser is the Director of Operations and brings with her years of knowledge of the hospitality industry and over eight years of management and operational experience in a restaurant or bar operation. ` '.,,� •�— " .0 The Deputy Director, Jackie Mooney previously worked as the Operating Manager for Mint Leaf, a cannabis delivery service. ^� HIGHLIGHTS • Female owned cannabis • Cannabis Education Center to .s business. serve as destination for residents to learn about • Offers plant based beverages to cannabis history and products. mitigate uncomfortable side effects of cannabis. California-grown proprietary , rY 0 strains. • Engagement with local artists to create interactive art ". 4vvfv installation in store. 81 A • �tt • ^w ilt i � Milli Aft • Description: • The Door Number Six(DN6) consumption lounge is comprised of four different components; a day Spa, Cafe, Clinic and an Educational Center. The Spa will have 3rd party wellness items, discounts on services for residents, as well as Groupon discounts for services. Clients of the spa will have the opportunity to experience an array of State-of-the-Art spa services with CBD and/or THC cannabinoid therapy treatments designed for optimum wellness with CBD serving as an anti-inflammatory and THC as a pain reliever. The Jackpot Cafe will offer daily specials and happy hours. Team: Jackie Subeck is the Chief Executive Officer of Door Number Six. Amy Lund and Laurent Zilber are the Co-Founders. The team has decades of experience in the cannabis industry. Jackie is a member and on the board of the West Hollywood Chamber of Commerce Governing Affairs Committee. For nearly two years, she was the Co-Chair of the Los Angeles chapter of Women Grow, a business to i - business networking group designed to empower women and men who want to enter the legal cannabis industry. I i I HIGHLIGHTS • Daily,weekly and/or monthly • One-on-one consultations discounts for specific items. available via phone or via in- home visits. • Collaboration green certified cultivators. • Will only work with high quality jvendors with lab tested • Everyday 420 specials at products. 4:20pm. • Partnerships with CannaKids • Majority female owned. and UCLA Extension 82 CONSUMPTION LOUNGE • • • r~ 14 APPLICANT • Consulting t• • i PUSINESS NAME Budberry OWNERS Fogarty,Patrick •nathan Locarni, Jeff Danzer • JonathanCaniglia Description: Budberry will feature a dual-venue adult use retail cannabis store and cannabis consumption lounge with an emphasis on customer LOCATION (ADDRESS) service, a technology-driven delivery service, range of top-quality products sourced locally and produced in-house, innovative luxury TBD aesthetics, and an open kitchen featuring an acclaimed cannabis chef. A central feature in Budberry will be an open kitchen, visible by large windows and helmed by Executive Chef, Jeff Danzer, more OTHER CANNABIS popularly known as Jeff the 420 Chef. Design will focus on creating LICENSES RECEIVED an intimate, entertaining, and inclusive facility with a stylish edge. Adult-Use _ - • DeliveryBudberry will engage local artists, furniture designers, and florists to create a design that is truly rooted to West Hollywood. Team: Jon Locarni and Patrick Fogarty are co-founders of Budberry. Combined they have decades of experience in operation, management and the cannabis industry. In early 2016,Jon and Pat made a commitment to helping cannabis businesses comply with regulations by implementing financial and operational procedures. Executive Chef, Jeff Danzer, is the author of 420 Gourmet: The Elevated Art of Cannabis Cuisine. Jeff was also recently named one of America's top cannabis chefs by The San Francisco Chronicle, famous for inventing the Freel-eaf process for cleaning cannabis. %Now HIGHLIGHTS • By day,the consumption area a speak-easy.This eclectic will resemble a cafe&bakery atmosphere contains an atmosphere,with Jeff's fresh evening menu that includes creations being cooked up every more drinks than food items, morning,the aroma of pastries with partnerships with and coffee filling the air,and a RIPE and Pink Matter, both wide array of products,including supplying juices and mixers, West Hollywood's very own Pink allowing fruity infuse-able Matter juices. "mocktails,".These drinks can then be infused with the • By night,the consumption area addition of a small separately will transition into a dimly lit sold THC infused "elixir"to 1 lounge with the ambiance of create a fun,cannabis cocktail. . r - • • - • Ilia i • Description: • • - • -• • The Muthatree edible consumption lounge will feature an infinite • • •- - realities gallery curated by Dr. Matthew Miller.Virtual reality is an emerging technology with a path similar to the one cannabis must travel. There is a synergy between the two, as each enhances the • • effects of the other, leading to surreal experiences, unmatched • , • • educating capacity and exponential healing possibilities. The Gallery will be located in a 2,500 sq. ft. two-story building that has been reimaged as a technologically futuristic exploration space for • experiencing cannabis paired with virtual reality and 3D digital art. The gallery will also feature a cafe where Head Chef Lover Robinson will prepare a menu of infused and non-infused vegan tapas, healthy drinks,juices and shakes, sandwiches and salads for gallery consumers to enjoy while engaging in their virtual reality experience or enjoying private events. Team: Dani Shaker,the Chief Visionary Officer& Managing General - IL Partner is the co-founder of Think and Grow Lab, a non-profit created to provide access to the "new green economy" for social equity entrepreneurs. Dani served on the West Hollywood Eastside Working Group Committee, a group tasked with developing an J Eastside Community Priorities Plan. Sherri Franklin,the Chief Strategic Officer, is the CEO of Urban Design Center which provides F • ' community development consultancy services for non-profit and government agencies. Calvin Frye will be a part of the team and is the owner of Compassionate Caregiver Studio City, which commenced operations 13 years ago in 2005. HIGHLIGHTS r. • Commitment to purchase over • Only partnering with Clean G t. 50%of cannabis flower from Green Certified cultivators and fl ► small cultivators. manufacturers. • Support of non-profit arts, 10%of tax net profits will be health services and community invested into affordable development organizations. and live-work housing for emancipated youth,artists • Gallery space for community- and seniors and community based meetings and events at no development projects in the A.. - x ! charge. City of West Hollywood. 84 • • • • • i • Description: Los Angeles Patients and Caregivers Group(LAPCG) is one of the oldest continuously-operating cannabis retailers in Los Angeles County. Founded by medical cannabis patients and their primary • •- • -• caregivers in 2004. LAPCG provides affordable, boutique and • •- exclusive cannabis goods. The edible consumption space will allow customers to consume edible cannabis goods in the store's inventory. The overall style of the lounge will include white walls, subway tiles that reflect natural light, and decorative plants. Customer education is a key component for LPCG, and includes a three part approach: educational materials, staff interaction, and an innovative online training and education program. Team: am , LA Patients and Caregivers(LAPCG) has served West Hollywood's ar" medical and adult-use population since 2004. The President, Don Duncan, is a nineteen year veteran of the cannabis industry. He is the co-founder and member of the Board of Directors of Americans for Safe Access("ASA") and Americans for Safe Access Foundation, which comprises the nation's leading organization of patients, _4 medical professionals, scientists and concerned citizens promoting safe and legal access to cannabis for therapeutic use and research. HIGHLIGHTS S T R A,T U S • Focus on organic and natural • Commitment to small cannabis product offerings. cultivators. • Since 2004, has offered and will • High-quality cannabis products continue to offer free and reduced-cost medical cannabis. • Experience in the medical cannabis industry since 2004. 85 CONSUMPTION LOUNGE • • • 1 `►.. I !T APPLICANT L � Where Eagles 1I 13USINESS NAME The Fantom Flower Description: The Fantom Flower will be a unique edible consumption lounge, Daniel S• David Alex with a passion for the life-saving potential of cannabis. The design Kardos, and Pear Flowerof the consumption lounge will use elements such as iron-paned windows, wooden beams, concrete, and tiles, to enhance simplicity LLC throughout the space. There will be an on-site registered nurse hosting educational lectures and showcasing research, empowering ON guests to knowledgeably discuss cannabis with their healthcare LOCATI (ADDRESS) providers and make their own healthcare decisions. The Fantom TBD Flower's edibles lounge will offer a relaxing community gathering space where customers will be free to order snacks, appetizers, drinks and entrees from the chef's non-infused, vegan menu. OTHER LICENSES RECEIVED Team: The Fantom Flower's ownership team collectively comprises more than 30 years of experience in the cannabis industry. General Manger Alex Kardos has worked in both cannabis sales and management for more than ten years,while General Manager Enzo Rossi has been a musician and budtender for many years. The team also consists of two edible lounge advisors, Paul Rossi and Francoise Koster, who bring experience managing restaurants and establishments throughout Los Angeles. The lounge will be supervised by Daniel Sosa, who's La Brea Collective Compassion 1 Program has provided free cannabis to cannabis patients with terminal illness for over ten years. Executive Chef Brandon Allen is a leader in the cannabis industry, having earned the first ever High • Time's Top Cannabis Chef in the spring of 2017. Chef Allen is also -T a certified interpener,which is best described as the "sommelier" of cannabis. Patricia Arquette will be the Creative Director and although she is new to the cannabis industry, has fought for social equity and marginalized communities, specifically to LGBTQ causes, throughout her career. HIGHLIGHTS • Visual and performing art • Option to purchase vegan installations from local West products. T • ° Hollywood artists. o Offering fully trans- A. Commitment to utilizing inclusive and gender CalCann system to find small affirming healthcare i f specialty cultivators. coverage to all staff. L. Informational materials and brochures will be available in x multiple languages. 86 DELIVERY tiM l w r t• 1 • 1 � • • _ Description: The Artist Tree will be an immersive experience, a destination for cannabis learning, consumption, and art, with the motto of - "Enhancing the Art Experience". The Artist Tree's vision is a multi- unit commercial building with performance space, a restaurant, bud bar, retail store, museum, and art gallery, all tied together by a large communal piazza. The stand-alone delivery service design consists of split face basalt stone and translucent glass windows that allow light to permeate, while maintaining privacy. There will be a privacy wall that will provide space for an original mural, which will . • _ _ _• •_ be created by a member of the City's Muralist Roster. The interior • • • ,• •_ • • includes an open room with desk areas and a spacious lounge. Team: • • • • The Artist Tree owners Avi Kahan and Mitchell Kahan are veterans of the California cannabis industry. They collectively control two local Pre-ICO dispensaries, The Green Easy and Canto Diem. The • Kahan brothers also have minority ownership in and are involved in two additional Los Angeles Pre-ICO dispensaries, California Compassionate Care Network (CCCN) and MMD. Lauren Fontein is the head of product development and customer relations at edible product company Baked, where she supplies numerous Los Angeles « « area collectives. -• -- HIGHLIGHTS ® ® o •. •• W • Biodegradable products and Online ordering system W = eco-friendly packaging. including (1)product name, (2)description, (3)strain, • All vehicles used for delivery (4)strength, (5)price, •- •-�-�- �^'�•'- °••'w'°'-- ^+ service will either be completely (6)effects, (7) health benefits 0 electric or hybrid. and (8)consumer reviews. « + x • One on one counseling available The Artist Tree's website will ' via telephone for all consumers have a user friendly ordering engaging in delivery service. platform that promotes local performers and artists, • Monthly newsletter on consumer featuring a new artist each ® O O reviews,trending products and month. W hot topics from within the industry. 88 i fAl.4'• Y AM • Description: CALMA,the Italian feminine noun, connotes peacefulness and • • • ••• • • tranquility. The CALMA boutique will focus on providing a tranquil and therapeutic experience, promoting the well-being of the West Hollywood community through a focus on education and customer- • • ' ' health. The boutique will aim to primarily serve City residents, 1 •- - incentivizing their patronage with local business partnership discounts and sustained participation in community programming. CALMA's extensive and curated product selection will help to set it • apart.The high-quality, ecologically conscious cannabis products will appeal to West Hollywood's progressive and conservation- 0 residents. Stringent due diligence and exacting quality • control of operators,farms,farming techniques,extraction, and processing techniques will ensure that customers consistently receive high-grade products at the lowest possible price point. The focus of CALMA's delivery procedures is on the protection of the neighborhood and surrounding area,security and safety of the driver, and satisfaction of the end-consumer. Team: CALMA's management team consists of Jason Illoulian, CEO of Faring,a West Hollywood based,real estate development firm,and r.----- Cobby Pourtavosi, owner and operator of several businesses and a variety of cannabis-related enterprises. Mr. Pourtavosi has owned and operated a variety of cannabis-related enterprises over the last ih 16 12 years, including six retail operations, an indoor growing facility, and a THC/CBD oil manufacturing firm. Mr. Pourtavosi is an owner $25 us $25 of the Green Goddess medical and adult use retail dispensary St.9 Or 9.FV OG in Venice, CA. Both members of CALMA's ownership team are longtime West Hollywood residents and business owners. 4> # HIGHLIGHTS CAIIVA �_� • User-friendly website featuring Partnership with community list of products, organized and neighborhood watch by type (topicals, pre-rolls, groups, including participation sag :� s3v concentrates edibles, etc.) in various City events. (PRIDE ie.q C­ _ Parade& Festival, National • The company will only use Night Out etc.) vehicles that are environmentally conscious, including low- • Diverse and vibrant variety of emission hybrids or all-electric cannabis products. cAuvn vehicles. • Support for small cannabis cultivators and small canopy growers. t39 S39 t39 89 Alien CG D""G" Hollywood)DELIVERY (Physical Location in West APPLICANT Essence • Essence BUSINESS NAME OWNERS Alejandro Yemenidjian, Yemen*idjian and Brian Greenspun _ • • . . OTHERTBD LICENSES RECEIVED Description: • _ Retail • Consumption Essence is currently one of the leading dispensaries in Las Vegas, Lounge • • Vaping, Edibles) but Essence's West Hollywood wellness center will be its West Coast flag ship location. The center will focus on inclusiveness and experience, while combining social responsibility, activism, aesthetics, fun, and sexiness into one special space. The Essence delivery service has a commitment to keeping West Hollywood neighborhoods safe, while also providing high quality service to customers. Essence commits to purchasing eco-friendly, electric or #PPO' hybrid delivery vehicles while providing safe and secure transport►� of cannabis. Essence also offers an efficient and user-friendly online ordering system for the cannabis delivery service. Team: Armen Yemenidjian has extensive experience in Nevada's cannabis community. He was named as one of the top 100 most influential 4+I people in the world of cannabis in 2018 by High Times. During his leadership, Essence was named the number one dispensary in Nevada by Business Insider and number twenty two in the nation. Essence has also been named "Best Dispensary" 17 times by Leafly. HIGHLIGHTS ae6er • High-quality cannabis products. • Cannabis Resource and Community Center. • One-on-one consultations to discuss potency,terpene profiles • Commitment to empowering and healthy-use habits. small cannabis cultivators. 90 Hollywood)DELIVERY (Physical Location in West tip 7 APPLICANT • • • BUSINESS NAME LO • •erry •,' OWNERS Patrick Fogarty, Jonathan • Jeff Danzer and Jonathan Caniglia • • (ADDRESS) i OTHER Description: LICENSES RECEIVED Budberry will feature a dual-venue adult use retail cannabis Adult-Useand store and cannabis consumption lounge, with an open kitchen Consumption • •- (Edible) featuring an acclaimed cannabis chef. The delivery services will be technology-driven, and will focus on customer service and providing a range of top-quality products sourced locally and produced in-house. On-site Budberry will extract and infuse edible products using a proprietary, non-volatile extraction process known as FreeLeaf, which deep cleans cannabis to create odorless, virtually tasteless, strain-specific cannabis oils and cannabis butter for cooking. Team: •nr:�,. Jon Locarni and Patrick Fogarty are co-founders of Budberry. �` 11 Combined they have decades of experience in operation, - M •r i r - management and the cannabis industry. In early 2016,Jon and Pat t� made a commitment to helping cannabis businesses comply with regulations by implementing financial and operational procedures. A' HIGHLIGHTS • Plant-to-table products. Incorporating local art and —�-- r working with local artists. • Odorless and virtually tasteless ( a nature of cannabis oils and Top quality products that are butters. locally sourced and produced in-house. 91 DELIVERY Location in West Hollywood) 4 • � REENWQLF • APPLICANT .D . Greenwolf West Hollywood BUSINESS NAME - OWNERS r r Soheil Yamini, Bernard Bregman, Elizabeth Caffrey, Marc Ravner, and Justin Ehrlich Description: Greenwolf will serve West Hollywood as an all-inclusive mecca for cannabis, gourmet upscale dining, and must-see social life. LOCATION (ADDRESS) Greenwolf will be located at 8535/8537 Sunset Blvd in a building with an enclosed courtyard that backs onto the Hollywood Hills. 8535/8537 Sunset Blvd. Greenwolf West Hollywood will provide home deliveries to medical patients and local cannabis connoisseurs through the utilization of an online ordering system, trained delivery drivers, and OTHER CANNABIS comprehensive reporting metrics. Low income patients and those LICENSES RECEIVED with debilitating medical conditions will receive a 20%discount, Adult-Use Retail, _• Dispensary, once-per-month waived delivery fee, and advance email notification • Consumption • • .• • of upcoming events. • • • Team: CEO Sol Yamini has owned and operated Pink Dot on the Sunset Strip since 2004, a retail hub and delivery service that includes alcohol and tobacco, both of which are strictly regulated. He is also an active member of the West Hollywood Chamber of Commerce and the Sunset Strip Business Improvement District. Elizabeth Caffrey is currently the owner director of affiliate Los Angeles iL\ All, dispensary Greenwolf and Bernie Bregman currently has a leading role in the California cannabis firm LoudPack. All Y� HIGHLIGHTS • Partnership with Mary Jane Staff will attain Americans University, in-home educational for Safe Access(ASA) Patient- service that provides courses on Focused Certification (PFC). e me of cama-tnunsm f—,that F.".— cannabis. West HOV ood c .Poo' • Greenwolf will offer staff paid • Made Symple, a digital volunteer days, competitive technology and design firm will benefits, and educational develop software to enhance incentives. customer experience. • Designated preferred products will be made without the use w woman cannabis Lsrmers Thnsn macaw s arc donating Anmsldn look at our slat, of pesticides, or, harmful or growing your Worne weed to the LSGT Communny the an dispensary inorganic chemicals. 92 L «r. _ f � } _ .tr i • Description: • •_ • • • PleasureMed will bring to fruition an idealistic vision —to establish an enduring cannabis boutique in West Hollywood with an • '• • • • emphasis on health and wellness benefits. PleasureMed will include • ' • retail, medical, delivery, and a roof top consumption lounge. PleasureMed's delivery will provide the highest quality cannabis and will emphasize organic options for patrons, in addition to carrying cannabis and derivative products sourced from small cannabis producers. Team: For over two decades Brian Robinson has owned and operated The Pleasure Chest, an adult entertainment retailer located in West Hollywood. Under his direction,The Pleasure Chest has grown to five locations, including West Hollywood,Chicago and New York. In addition to Mr. Robinson,the advisory board of PleasureMed will include Martin O'Brien, Soren Gray and Dr. Sherry Yafai. Mr. O'Brien is the founder of the Berkeley Patient's Care Collective and Foxworthy Red (a licensed cannabis cultivation company in Sonoma County). Mr. Gray brings experience as the General Manager of os. Sunset Junction Organic Medicine(a cannabis dispensary located Entertainment. ./t - in Silver Lake). Dr.Yafai is a Board-Certified Emergency Medicine Enjovment, practitioner. She specializes in holistic medicine and natural and Education remedies, including the application of medicinal cannabis. «- ='• ••�- 1 HIGHLIGHTS • Subsidized and discounted Pleasure Chest is ranked #15 medicine to eligible West on TripAdvisor's list of West a• Hollywood residents. Hollywood attractions. • Will purchase from cultivators using organic farming materials for Your Conve,senc and biodynamic farming methods. ` �y 93 4. DELIVERY (Physical Location in West Hollywood) APPLICANT Redwood Retail, LLC LO D BUSINESS NAME JONES I • • • - - *Ovt R - ROYAL fffGfi`1. OWNERS Robert Rosenheck, Gotham Fund, Cynthia Capobianco, Mona Mohammad .•- . • Description: Rebecca Lord Jones will be the world's first hotel based cannabis boutique and delivery service. The boutique will be located inside The Standard hotel on the world famous Sunset Strip, and will sell • • (ADDRESS) Lord Jones's unique and luxury products that are currently sold The Standard 11 Sunset Blvd.) in hundreds of stores throughout the country. The Lord Jones shopping experience will offer a state of the art online ordering system and white-glove delivery service. The online system will OTHER CANNABIS allow customers to easily view product information and reviews and LICENSES RECEIVED pre-select products for delivery. Lord Jones confections are made Adult-Use Retail by hand in small batches with high quality ingredients including single origin Ecuadorian dark chocolate and imported natural European fruit essences. Team: Mr. Rosenheck is an environmental leader and award winning brand strategist, creative director and product developer,with decades of experience in state-regulated industries. Ms. Capobianco served as a senior executive for U.S. fashion brands, including Donna Karan and Banana Republic, before becoming Vice President of Global Marketing at GAP. Ms. Mohammadi, a former special assistant to Governor Arnold Schwarzenegger, is also a seasoned operations manager. Together the three operated the Hollywood Hills Wellness Association, a medical cannabis collective. Mr. Rader 1 spent the first fifteen years of his career providing legal service `+ to low-income communities and the next twenty five years, as a " r litigating partner at law firm O'Melveny and Myers. HIGHLIGHTS ©O I ' • State of the art online ordering Products have been featured system and white-glove in numerous publications Q QWAV Q Qr delivery service. including New York Times, Los tooQ 0 Angeles Times,Vogue, Forbes, 0 Q I • Product sourced from Flow Fast Company, Harper's Bazaar Q ey, '"'� I Kana, a pioneer in and more. g environmentally conscious, sustainable, and organic • Boutique will include cultivation. environmentally conscious �„* x design and alternative energy 1 sources. + x 94 35 Hollywood)DELIVERY (Physical Location in West HealingAPPLICANT Zen Collective Corporation BUSINESS NAME Zen Healing DIEPEM, 9fly OWNERS zenweho.com Eric Kinney LOCATION . . - 8464 Santa Monica Blvd. OTHER CANNABIS Description: LICENSES RECEIVED Zen Healing is one of California's oldest medical cannabis Medical Dispensary . medical dispensaries. The company will provide in-home delivery to dispensary) qualifying customers within a 10-mile radius. The store has its' own website which showcases the list of available items for purchase, as well as important information about the products. Zen's mission is to provide the best and cleanest cannabis products on the market, while maintaining impeccable corporate standards of sustainability and promoting local stewardship. Team: Zen Healing Collective is owned and operated by Eric Kinney, who has over 25 years of experience in the cannabis industry. Mr. Kinney learned the value of cannabis firsthand when his mother became afflicted in the late 1990s. He became employed by Zen in 2006 as a cultivator, and in in 2007, Mr. Kinney joined Zen's Board of Directors. Beginning in 2014, Mr. Kinney became the President and CFO of Zen. HIGHLIGHTS • Utilizing GreenRush-free online Medical cannabis discounts to cannabis marketplace that low-income patients,veterans, connects patients with local the disabled, social security dispensaries. recipients, HIV and AIDS patients and recipients of • Zen Healing has existed in the unemployment benefits. medical cannabis space since 2004. Commitment to small cannabis cultivators. 95 MEDICAL DISPENSARY LAeon West Hollywoo C., IL APPLICANT .j. BUSINESS NAME _J A&on Description: Aeon's flagship West Hollywood location will be a modern Wellness OWNERS Center equal to the new age of cannabis normalization. Aeon will Nicole •x, David Leider, Erronreimagine the dispensary as an integrated cannabis and natural • Veena Parekh product marketplace, a health cafe, a social lounge for consuming cannabis, and a cutting-edge wellness center. The wellness center will offer services from dietitians, naturopathic physicians, • • - bodyworkers, and acupuncturists, and the open showroom will TBD display merchandise grouped by health goal. Wellness consultants will provide recommendations, explain products' physiological effects, and advise regimens tailored to customer's health aims. OTHER Goods will feature barcodes on the exterior packaging, which will LICENSES RECEIVED enable customers to learn about the product's formula and active ingredients, cannabinoid profiles, and health data through digital Consumption • •' (Smoking, screens throughout the store. Unlike traditional dispensaries, Vaping, Edibles) an• • - Retail Aeon's Wellness Centers will also sell vitamins, amino acids, natural supplements, nootropics, and its specially-designed, house-line of protein bars, wellness shots and tinctures. Team: Founder and CEO Nicole Fox is a graduate of UCLA's nutrition and public health program and has extensive experience being a Registered Dietitian,working with patients to complement cannabis with food regimens and dietary supplements to alleviate headaches, insomnia or digestive issues. Nicole,with a handful of early [� Q Y operators, helped form the Greater Los Angeles Caregivers Alliance �.� „�T,• (GLACA). GLACA was instrumental in influencing the language T for the City of LA's 2007 initial Medical Marijuana Interim Control Ordinance. Nicole has assembled a medical advisory board, and identified the educated wellness consultants who will join her in launching Aeon. i HIGHLIGHTS • Female founded company. Each quarter,Aeon will i� collaborate with the City to • Partnering with the Audre Lorde host Canine Cannabis Health Health Center to host quarterly Events. events and workshops at the LGBT Center,to educate on The contemporary interior healthy and responsible use of design will use natural cannabis and CBD. materials and is inspired by the founder's love for • Will host one or two Cannabis Moroccan culture. Wellness health retreats in Ojai and Big Sur. b* v� • _ Description: The Artist Tree will be an immersive experience, a destination for cannabis learning, consumption, and art, with the motto of • • "Enhancing the Art Experience". The Artist Tree's vision is a multi- unit commercial building with performance space, a restaurant, bud bar, retail store, museum, and art gallery, all tied together by a large communal piazza. The exterior of the medical portion will consist of a facade using ecofriendly concrete, split face basalt stone, and • glass. The interior of the space will consist of self-service ordering stations spread throughout the showroom, with inlaid glass sections, . • _ _ • • • goblets(flower storage containers), and tablets. The medical store • •_ • • .• • • • _ will center on the Cannabis Learning Center(CLC), a cannabis _ _ museum and art gallery, showcasing works of local artists paired with • • • • • • • fun cannabis memorabilia and informational displays. Team: The Artist Tree owners Avi Kahan and Mitchell Kahan are veterans of the California cannabis industry. They collectively control two local Pre-ICO dispensaries, The Green Easy and Canto Diem. The Kahan brothers also have minority ownership in and are involved _ in two additional Los Angeles Pre-ICO dispensaries, California OWN Compassionate Care Network(CCCN) and MMD. Lauren Fontein is the head of product development and customer relations at edible product company Baked, where she supplies numerous Los Angeles area collectives. :� — - -- HIGHLIGHTS • Private consultation room for Same day discounts to all consumers seeking personalized, patrons of The Artist Tree private experience. who show proof of attending a performance, art exhibit • The CLC will include a fully or museum;staying at a hotel; functional cultivation room,where or dining at a restaurant visitors can learn about cannabis within West Hollywood. production and watch the process in real time. In store space will double as a teaching space to sponsor health-related community workshops. 9 r • GPEENWQLF- _ • _ _ Description: • • • Greenwolf will serve West Hollywood as an all-inclusive mecca ••" - • for cannabis, gourmet upscale dining, and must-see social life. Greenwolf will be located at 8535/8537 Sunset Blvd in a building with an enclosed courtyard that backs onto the Hollywood Hills. The medical space will be understated and modern, evoking a • • sense of confident professionalism that will appeal to elevated • sensibilities with packages displayed on open shelving and high-end samples displayed under glass. The medical operation will offer patrons a curated service complemented by cannabis sommeliers • that will bring extensive knowledge of cannabinoids and terpenes and their effects. In partnership with Mary Jane University,the medical dispensary will host events tailored for medical patients ' • _ • • • and newcomers to the cannabis space,focusing on the science • .- • • .. • . • - foundation, from targeted cannabinoid therapy and terpene • - education to methods of administration and ancillary product selection. Team: CEO Sol Yamini has owned and operated Pink Dot on the Sunset Strip since 2004, a retail hub and delivery service that includes alcohol and tobacco, both of which are strictly regulated. He is also I an active member of the West Hollywood Chamber of Commerce and the Sunset Strip Business Improvement District. Elizabeth / Caffrey is currently the owner director of affiliate Los Angeles dispensary Greenwolf and Bernie Bregman currently has a leading role in the California cannabis firm LoudPack. HIGHLIGHTS Preferred vendor system which alerts customers to products Educational workshops from small, minority-owned, exploring the properties .• o and environmentally-conscious f cannabis or self-titration + cultivators. (adjusting dosage in response y � to patient experience). • Staff will attain Americans for Safe Access(ASA) Patient- Lectures and counseling • Focused Certification (PFC). sessions with experienced members of the American _ Greenwolf will offer staff paid Cannabis Nurses Association, �-� .. volunteer days, competitive or peer patient wellness s benefits, and educational groups. incentives. 40 MEDICAL In: t .!, APPLICANT PleasureMed, (log E ;► '1= PleasureMedBUSINESS NAME OWNERS -- - Brian Robinson Description: LOCATION (ADDRESS) PleasureMed will bring to fruition an idealistic vision—to establish an enduring cannabis boutique in West Hollywood with an Monica7715 Santa Blvd. emphasis on health and wellness benefits. PleasureMed will include retail, medical, delivery, and a roof top consumption lounge. "PleasureEd",the patient services and patient education program, OTHER CANNABIS will be designed to offer services and aid in supporting patrons and LICENSES RECEIVED patients in their cannabis health and wellness goals. PleasureMed LoungeConsumption (Smoking, will source the highest quality cannabis and will emphasize organic VapingEdibles), Delivery, Adult- options for patrons, in addition to carrying cannabis and derivative Use Retail products sourced from small cannabis producers. PleasureMed's interior is designed to create a museum-like setting with high ceilings, decorative beams, crawling greenery and ornamental arched windows. Team: For over two decades Brian Robinson has owned and operated The Pleasure Chest, an adult entertainment retailer located in West Hollywood. Under his direction, The Pleasure Chest has grown to five locations, including West Hollywood, Chicago and New York. '+! In addition to Mr. Robinson, the advisory board of PleasureMed 0 .� ~v will include Martin O'Brien, Soren Gray and Dr. Sherry Yafai. Mr. I�( O'Brien is the founder of the Berkeley Patient's Care Collective and Foxworthy Red (a licensed cannabis cultivation company in Sonoma I t County). Mr. Gray brings experience as the General Manager of Sunset Junction Organic Medicine (a cannabis dispensary located in Silver Lake). Dr.Yafai is a Board-Certified Emergency Medicine practitioner. She specializes in holistic medicine and natural working Together remedies, including the application of medicinal cannabis. With Patients To Try ANew Type Of Th c"apy --••-----•• ••- HIGHLIGHTS r ri • Seminars and hosted events to Havana Apothecary themed educate consumers on Cannabis design and focus,accenting use. medical and homeopathic PlcasurcMcd's remedies. Medical Doctor, In addition to onsite workshops, Dr.Sherry Vafoi patrons will also be given Pleasure Chest is ranked #15 educational and informational on TripAdvisor's list of West brochures. Hollywood attractions. 100 ♦ .v.._.. :...... ■■■■■■■■■■■■ City of West Hollywood California 1984 www.weho.org/cannabis Tweet Save Email Favorite Share News » Cannabis Corner April 19, 2018 Grover Beach closer to lowering cannabis taxes BY CHRJS MCGUJNNESS Attempting to maintain a competitive advantage in what it hopes will be a booming industry,a divided Grover Beach City Council is one step closer to lowering taxes for the city's nascent cannabis businesses. click to enlarge w i f� ✓. t .+ File Photo By Jayson Mellom TRIMMING TAXES The Grover Beach City Council is moving toward cutting taxes for cannabis businesses in the city and capping the maximum amount they have to pay. Members of the council voted 3-2 on April 16 to direct city staff to develop an ordinance that cuts tax rates for commercial cannabis retailers,manufacturers, distributors,and cultivators and caps the maximum amount of taxes some of those businesses will have to pay. Councilmembers Jeff Lee and Barbara Nicolls and Mayor John Shoals voted in favor of moving forward with the cuts,while Councilmembers Mariam Shah and Debbie Peterson voted against it. If passed,the cuts will lower gross receipts taxes for commercial recreational marijuana retailers from 10 percent to 5 percent.Gross receipts tax on manufacturing and distribution businesses would be lowered to 3 percent.Commercial cannabis cultivation operations would be taxed at$5 per square foot of building floor area, down from$25 per square foot for the first 5,000 square feet of canopy,and$10 per 102 square foot past that. Voters approved the current tax rates in November 2016.Under California law,the City Council can vote to lower them without calling for another election. In addition to the cuts,the council also asked the staff to cap the maximum tax for retail businesses at$3 million per retailer and$2.5 million for each manufacturing or distribution businesses.A cap for cultivation businesses will not be included. The tax cap was a point of contention among the council.Peterson said it would be unfair to smaller cannabis businesses,while Shah questioned why the city would limit the potential revenue with a cap. "I just don't understand why we are bargaining against ourselves when we haven't collected one dollar;"Shah said. Lee,who proposed adding the cap,argued that it would be an incentive for cannabis businesses looking to set up in Grover Beach. "I want to be amenable to the retailers with the tax cap;'Lee said. Yosemite National Park Sierra National Forest vPOW Fresno 0 CALIFORNIA Death Valley f National Park Visalia Sequoia National Forest 'A'.g1e RakercfiPld Map data®Report a map error LOCAL CANNAIBIS TAXES This map shows cannabis businesses tax rates for several cities and counties in California.Click on the icons to see each municipalities tax rates.Data Courtesy Of Grover Beach County staff estimated that the lower rates would bring in about$1.2 million in the 2021-22 fiscal year,39 percent lower than the$2 million estimated under the current tax structure.The estimate did not include the impact of the tax caps.City Manager Matthew Bronson said that the revenue estimates were calculated conservatively,and did not include the possible additional revenue from recreational marijuana businesses. "If this goes along as planned,we are going to far exceed that amount;'Shoals said. The city staff will present the proposed tax cut ordinance to the council in May. 103 HOME I LOCAL NEWS, NEWS Grover Beach raking in tax dollars f rom cannabis businesses ® Alexa Bertola O 6:18 pm rn December 7, 2018 Grover Beach has paved the way for the marijuana industry in San Luis Obispo County. The first storefront dispensary opened back in May and a second store opened in July. A marijuana manufacturing business is also up and running. 805 Beach Breaks was the first shop to open its doors in Grover Beach. When it comes to the tax revenue it's generated so far, all that money goes back into the community and it could benefit all of us. "Our average transaction is about $99 per customer and so we're looking about 25 to almost 30 percent in tax rate with the city, the state;" said Daniel Fried, General Manager of 805 Beach Breaks. The city requires businesses like 805 Beach Breaks to pay a 5 percent gross receipts tax. Manufacturers pay 3 percent. "I'm giving kudos to the City of Grover Beach for doing a 5 percent tax rate versus the maximum of 10 percent on the goods and drive more sales;' Fried said. "In the first quarter we generated $120,000 and that was with three businesses," said Grover Beach City Manager Matt Bronson. The city was able to add this cash from July 1 to September 30 into its general fund. "We are pleased that we're beginning to generate tax revenues that will come right back to the community and help support key services;" Bronson said. He says the money can be used for streets, street lights, sidewalks, parks, police and fire, or other community needs. 104 "Customers do need some education on why the price of the goods go up at the end of their transaction and for us, it's really about being able to quote that it's going back to the community;" Fried said. And even more cash will be coming in for the fiscal year from July 1 to June 30 of next year. "We estimated approximately $700,000 would be generated in cannabis tax revenues and we believe we are on track for meeting that projection in this year's budget," Bronson added. This number includes two more retailers expected to set up shop early next year among more manufacturers and some cultivators. During a meeting in February, the city council will decide what specific projects the tax revenue will go toward. In California, tax revenue from the cannabis industry totaled over $74 million from April 1 through June 30, according to the California Department of Tax and Fee Administration. Alexa Bertola Alexa Bertola has been a Multimedia Journalist at KSBY for more than two years. She's a general assignment reporter. Story idea? Email her: abertola@ksby.com n 105 Email Favorite Share News » Cannabis Corner December 06, 201 E Grover 'on track' to meet cannabis tax revenue projections BY CHRIS MCCUINNESS Cash from the city of Grover Beach's commercial cannabis businesses is just beginning to roll in,and city officials appear to be satisfied with the initial returns on the city's newest industry. click to enlarge • �► �R -� All 't lit i / • tiil Il II tt 1I I l Ili .41 Photo By)ayson Mellom GREEN FOR GROVER 805 Beach Breaks and two cannabis businesses generated$120,000 in tax revenue for the city of Grover Beach in the first quarter of the fiscal year. According to a recent financial report to the City Council,Grover Beach took in $120,000 in tax revenue from three cannabis businesses operating in the city between July 1 and Sept.30,the first quarter of the 2018 fiscal year.Speaking with New Times,City Manager Matthew Bronson said those numbers indicated that the city would likely meets its projection of$700,000 in cannabis tax revenue by the end of the four-quarter fiscal year. "At this point we would say we are on track for meeting that projection;'Bronson said. Currently,the city requires cannabis retailers to pay a 5 percent gross receipts tax, while manufacturing and distribution operations pay a 3 percent tax.Cultivation operations pay$5 per square foot of building area for the first 5,000 square feet,then $10 per square foot after that.Bronson said the first quarter revenue came from three cannabis businesses,including two retail storefronts and one manufacturing 106 operation.Revenues are expected to increase as more cannabis businesses are permitted in the city. The funds from the cannabis tax go into the city's general fund.Bronson said the money could be used for public safety,street repairs and maintenance,and other key community needs. Grover Beach voters passed the cannabis tax at higher rates in 2016.The City Council voted to lower the taxes in 2018,partly over fears that the rate was too high and would drive away prospective businesses.Bronson said the industry appeared to be happy with the current tax rate. "What we've heard is that our tax rates are reasonable and competitive;'he said."They are in line with other communities around us:'4 Tags:Cannabis Corner,Cannabis,Marijuana,Cannabis Corner 107 Land Use Speakers: Moderator: Aly Zimmermann, Assistant City Manager, Vista Panelists: Jennifer Mizrahi, City Attorney, Desert Hot Springs/Quintanilla and Associates John Leonard, Community and Legislative Affairs Manager, West Hollywood This section will focus on: • Environmental Impact Review assessments • CEQA challenges • Tailoring a land use standard to your community 109 Land Use (continued) Reflections / Notes 110 Land Use Resources Online Resources: City of Chula Vista Commercial Cannabis Ordinance (enacted by the City): https://chulavista.m un icipal.codes/CVMC/5.19 City of La Mesa Measure U (community initiative approved by voters): http://www.cityoflamesa.us/1425/Measure-U-Medical-Marijuana 111 Tactics for Good Neighbors Speakers: Moderator: Aly Zimmermann, Assistant City Manager, Vista Panelists: Cody Bass, Councilmember, South Lake Tahoe Brad Rowe, Cannabis Compliance Practice Leader, MuniServices/Avenu This section will focus on: 1) Effects of cannabis on communities a. Positive and/or Negative experiences w/ dispensaries b. Addressing concerns of retail & delivery c. Odor controls 2) Methods taken to overcome political challenges of authorizing commercial activity 113 Tactics for Good Neighbors (continued) Reflections / Notes Tactics for Good Neighbors Resources Printed Resources: "Critical Pratices to Ensure Good Neigbor Relations," from City of Union City 115 Additional Resources Online Resources: California Bureau of Cannabis Control Text of Regulations: https://bcc.ca.gov/law reps/cannabis order of adoption.pdf CBCC Guidance on Commercial Cannabis Activity Fact Sheet: https://bcc.ca.gov/about us/documents/19-123 commercial cannabis.pdf CBCC Collectives and Cooperatives Fact Sheet: https://bcc.ca.gov/about us/documents/18-006 collective fag.pdf Printed Resources: ICMA's "Local Impacts of Commercial Cannabis" 119 .., .• S- '� - fir- '�, "..+rut,' �5i�,'"M ' "c'-`a . •- _ate-f,•._ ., y' �Ks� ��` s' �;,e. :s�Z -ySE�i O •`+�^.`_"'^i•may _. ��L w �- �s � :� �'�C'_ j 4 �' ''��� ��:.�.y�rVa' �A i � "�l��` r _ y � '��� �' �� � �-` ```l` �•, ice. _ ' all r ,x -.s t ICMA,the International City/County Management Association,advances professional local government manage- ment worldwide through leadership, management, innovation,and ethics.Through expansive partnerships with local governments,federal agencies, nonprofits,and philanthropic funders,the organization gathers information on topics such as sustainability, health care,aging communities,economic development,cybersecurity,and perfor- mance measurement and management data on a variety of local government services—all of which support related training,education,and technical assistance. ICMA provides support, publications,data and information, peer and results-oriented assistance,and training and professional development to more than 12,000 city,town,and county experts and other individuals and organiza- tions throughout the world. Published September,2018 Copyright©2018 International City/County Management Association,777 North Capitol Street, N.E.,Suite 500, Washington, D.C.20002.All rights reserved, including rights of reproduction and use in any form or by any means, including the making of copies by any photographic process or by any electronic or mechanical device, printed or written or oral,or recoding for sound or visual reproduction,or for use in any knowledge or retrieval system or device, unless permission in writing is obtained from copyright owner. 121 Contents Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Impact Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 PublicSafety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 PublicHealth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Summary Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 CaseStudies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Carpinteria, California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Durango, Colorado. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Fort Collins, Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Grover Beach, California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Southern Oregon -Jackson County and City of Ashland. . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Juneau,Alaska. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Kirkland, Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Pacifica, California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Santa Rosa, California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 LOCAL IMPACTS . - Acknowledgements ICMA gratefully acknowledges the City of Half Moon Bay,California for its funding and support of this research project.We also appreciate the generosity of the following individuals in sharing their time,insights, and connections: Amber Blake Deputy City Manager,City of Durango,CO Dennis Bozanich Deputy County Executive Officer,County of Santa Barbara,CA Matthew Bronson City Manager,City of Grover Beach,CA Matthew Chidester Deputy City Manager,City of Half Moon Bay,CA David DurFlinger City Manager,City of Carpinteria,CA Judy Erwin City Manager,City of Hines,OR David Favour Development Services Deputy Director,City of Issaquah,WA Eric Feldt City Planner,City of Battle Creek, MI Rebecca Fleury City Manager,City of Battle Creek, MI Ben Florine Deputy City Clerk,City of Durango,CO Adam Hanks Interim City Manager,City of Ashland,OR Chris Harlow Deputy City Clerk,City of Durango,CO Clare Hartman Deputy Planning Director,City of Santa Rosa,CA Lorenzo Hines Assistant City Manager,City of Pacifica,CA Danny Jordan County Manager,County of Jackson,OR Ron LeBlanc City Manager,City of Durango,CO Joe Lopez City Manager,City of Modesto,CA Sean McGlynn City Manager,City of Santa Rosa,CA Emily Moon Interim City Manager,City of Issaquah,WA Dirk Nelson City Attorney,City of Durango,CO Amy Phillips City Clerk,City of Durango,CO Ginny Sawyer Policy and Project Manager,City of Fort Collins,CO Suzanne Sitter Legal Coordinator,City of Durango,CO Dan Steidle Chief of Police,City of Pacifica,CA Kurt Triplett City Manager,City of Kirkland,WA Rorie Watt City Manager,City and Borough of Juneau,AK Tina Wehrmeister Planning Director,City of Pacifica,CA Scott Winkels Intergovernmental Relations Associate, League of Oregon Cities Finally,the authors thank our ICMA colleagues Kirie Samuels,Anne Phelan, Erika White,and Tad McGalliard for their editing,design,and other contributions to this report. LOCALIV OF • Local Impacts of COMMERCIAL CANNABIS INTRODUCTION (LSD),methylenedioxymethamphetamine(ecstasy), methaqualone,and peyote? The last two decades have brought waves of signifi- Under the Obama administration,the Depart- cant change to state laws regarding medical and recre- ment of Justice issued a series of guidelines regarding ational cannabis,which in turn have implications for federal prosecution of medical and recreational can- local governments. nabis activities,the best known being Deputy Attorney Since the passing of California's Proposition 215 in General James Cole's 2013 memo.The Cole Memo pro- 1996,another 30 states plus the District of Columbia, vided some assurance to states and localities permit- Guam,and Puerto Rico have followed with their own ling medical or recreational cannabis activities that the measures legalizing medical cannabis.Voters in nine of federal government would not challenge these states' those states—Colorado,Washington,Alaska,Oregon, laws,provided they aligned with federal high-level Massachusetts, Maine, Nevada,California,and Ver- priorities such as keeping marijuana away from children mont—plus the District of Columbia have also legalized and upholding protections against public health and adult recreational use of cannabis.' safety threats associated with use and distribution. At the federal level,cannabis remains a Schedule I In early 2018,the new Attorney General Jeff Ses- drug according to the U.S.Controlled Substances Act, sions issued a memo to all rescinding the Obama reserved for"substances...with no currently accepted administration's guidance on federal prosecution of medical use and a high potential for abuse,"a classifica- medical and recreational cannabis activities.3 Despite lion also applied to heroin, lysergic acid diethylamide the Justice Department's about-face,additional states State Cannabis Laws as of July 2018 r w _ r Comprehensive Medical Law Comprehensive Recreational and Medical Law Source:National Conference of State Legislatures LOCALOF • such as Oklahoma and Michigan have since proceeded I M PACT AREAS with their plans to vote on medical and recreational cannabis, respectively.The Canadian government over- Economic Development whelmingly passed a national measure to legalize and regulate cannabis,becoming the second nation world- Redevelopment and Growth Potential wide to do so. In the United States,public polling on While not guaranteed, it is certainly possible to capital- the issue shows a dramatic shift over the past decade ize on peak interest in this industry as an opportunity in favor of legalization 4 for redevelopment and economic growth.Across the In the meantime,increasing numbers of local govern- state of California,the declining cut flower industry is ments are faced with decisions about whether and how causing some producers to consider a shift toward can- they want to regulate medical and/or recreational canna- nabis cultivation.6 Small-scale food growers on the rural bis in their communities.These decisions are extremely outskirts of Cape Cod, Massachusetts,find themselves complicated and have implications across many local in a similar situation.'Grover Beach,California realized government departments and systems.Public debate its underused industrial land would be marketable to is emotionally charged and not all questions can be cannabis product manufacturers,and imposed addi- answered given the youth of a legal cannabis industry. tional requirements for public improvements on those ICMA provides this resource to assist local govern- sites to such users.The small town of Cotton Plant, ments in considering implications of legal commercial Arkansas—a far cry from progressive costal enclaves— cannabis activities in their communities. Findings and sees potential for a legal medical cannabis industry to recommendations are drawn primarily from interviews resurrect a waning local economy.' with local government administrators and staff and review of available data and reports(emphasizing neu- tral sources whenever possible)from early adopters of Cash-based businesses. Regardless of lenient state and legal cannabis legislation. local policy,the illegal status of cannabis at the federal level renders it effectively an all-cash industry,as the federally insured banking system is extremely limited A note on terminology: Cannabis is on how,if at all,it can service these businesses. It can the also be challenging for businesses to access auxiliary biological • financial(e.g.,accounting)or legal services that other • • • • • ' • types of businesses take for granted. For local govern- popularly -• to as marijuana, ments,this means being prepared to accept massive hemp, and no shortage of other slang cash payments for taxes and fees,which could include Although early • purchasing cash-counting machines and/or increas- on this topic -• the spelling "mari- ing security to protect staff and facilities.And for local some -. this term economies,all-cash offers on land can place pressures • its variants, specificto use of on availability and have pricing consequences for other plant for • _ were introduced industries as well. in an attempt to marginalizeWho are operators?The high cost of licenses, populations.' . . •- permits,land,security,other startup requirements,as the scientific term, marijuana pre- well as a lack of access to financing present significant vailed in common vernacular. This barriers impacting who can enter the industry. But report the industry is attracting a wide range of operators, tific term gives preference • from those with a history in agriculture to tech-savvy cannabis • entrepreneurs.Google employees own one of the few interchangeably • • cannabis retail stores in Kirkland,Washington,while a to be • large start-up in Grover Beach,California is connected state • • local legislation. to a well-known Los Angeles rap per pper and N personality. In Santa Rosa,California,city staff discovered through LOCALOF • their licensing processes that many cannabis businesses — It can be tempting to overreach with projections. were operated by female heads-of-households. Early analyses on the potential economic impacts Industry employment.The Washington State of the cannabis industry are fraught with assump- Institute for Public Policy,charged with evaluating lions that can multiply into gross exaggerations the state's implementation of its legalization measure, and unrealized expectations(true for any industry, estimated the average of its 700 active cannabis busi- but particularly so for one just emerging from nesses employed approximately nine full-time equiva- underground). lent(FTE)employees at an average hourly wage of — Avoid taxing the industry back underground.The $16.45(median of$13.44)in the final quarter of 2016. city of Grover Beach,California actually adjusted The majority of retailers,processors,and producers its tax rates downward as the industry came online were classified as small,employing less than nine FTE. to maintain a competitive overall effective tax rate. Producers and processers tended to be even smaller, — Consider your costs,which likely spread far employing four or fewer FTE.9 across your organization.The City of Santa Rosa, Revenue Generation California provides a detailed breakdown of the State leaders in favor of a regulated legal cannabis estimated steps and costs associated with just industry often tout the associated economic opportuni- the review of business applications,which are ties from license fees and sales and excise taxes.States substantial.10 Fort Collins,Colorado is carefully have earmarked this revenue for specific needs such as trying to monitor and cover its costs,which also schools(including construction,early education,and include staff support from a licensing coordina- anti-bullying measures),public health(substance abuse for and dedicated police officer.In contrast,the prevention/treatment,mental health),and public safety. small city of Hines,Oregon believed it was seizing Slices of revenue are also passed through to local an economic opportunity as the only city in its governments where cannabis activities are permitted. county to allow commercial cannabis businesses, Revenue distribution formulas may account for popula- but the administrative burden on its limited staff lion, number of licensed businesses,and other fac- has left them questioning the net benefit. tors,and are regularly subject to challenge or change; Of the communities we interviewed for this report, cultivation hotspot Jackson County,Oregon is urging those enlisting the help of external consultants with its state to weigh total canopy size more heavily in its cannabis industry expertise were typically pleased with revenue-sharing calculations.Some states,such as Ore- the support provided. gon,also prescribe how locally shared revenue should Tourism be spent(on public safety,in the Oregon example). For multiple reasons,the local share tends to be signifi- Tourism is a significant economic sector in virtually all cantly smaller and thus less impactful. of the early states to legalize recreational cannabis,so In light of this,and to offset local administration, it warrants special attention.While individual opinions regulation,and enforcement costs,many communities vary as to whether cannabis is a deterrent to tourism, have elected to impose their own license fees and/or research suggests a more neutral-to-favorable impact. additional local taxes on the cannabis industry.State In 2016,the Colorado Tourism Office included a new legislation may set restrictions on the rate and process series of marijuana-related questions in its annual for doing so,and state municipal leagues are often research on visitor behavior.A contracted research useful resources in parsing those regulations.Spe- firm queried individuals as to whether legalization of cific guidelines for setting such rates are beyond the marijuana influenced their perceptions on living/work- scope of this report,but general observations from our living/work- ing,visiting,or purchasing good/services from those research include the following. states.According to their findings,a majority of visitors' — Explore this option as early as possible.Durango, opinions of states where marijuana was legalized did not change.Approximately 30 percent of respondents Colorado waited until the industry had been oper- viewed those states more positively,and approximately ating locally for multiple years before introducing a dedicated tax proposal,which they were forced to 1 in 10 had a more negative view based on legalization of marijuana. Results were also stratified by whether drop in the face of overwhelming opposition. • OF • the respondent resided in Colorado and/or had taken the cash-based nature of the industry do present condi- a leisure trip in Colorado over the past year.Among lions that could encourage such activity.These risks nonresidents visiting Colorado in the year of this study, have not been lost on state and local regulators,who 47 percent said that legalization of marijuana positively have built a range of precautions into cannabis licens- influenced their consideration of states to visit.Another ing and land use regulations,such as requirements for study commissioned by the Colorado Tourism Office security systems,lighting,and employee background estimates that 15 percent of Colorado tourists engaged checks to protect the businesses themselves as well as in a marijuana-related activity during their visit,with local communities. a third of those citing that activity as a motivation for As the sector generally most accessible to the public, their trip." It is worth noting that state and local tour- retail businesses(or medical cannabis provisioning ism offices generally do not promote cannabis-related centers or dispensaries)are often a primary concern activities due to explicit or ambiguous regulations to municipalities.Communities implementing these based on federal legal status and/or limiting advertising protective operating and siting requirements reported to minors.12 overall satisfaction with their local legal operators and Laws restricting smoking or consumption can present noted that providing standards for compliance shifts a complication for local cannabis-related tourism,while more of the responsibility from law to code enforce- at the same time alleviating some concerns of residents. ment.The City of Fort Collins dedicated a police officer State and local laws vary,but restrictions similar to those to the industry whose work is characterized mainly as targeting the use of tobacco or alcohol use often apply, relationship building rather than punitive; police in the as do new regulations prohibiting on-premises cannabis City and Borough of Juneau,Alaska also assist busi- consumption. Private property owners and operators nesses with implementing best practices.The police can also impose their own restrictions on cannabis con- chief in Pacifica,California,notes that previously illegal sumption.Tourists may be surprised to discover they are businesses avoided reporting burglaries and other prohibited from consuming cannabis products in public crimes against their property for fear of exposing spaces,in rental cars(even as passengers),in hotels,and themselves. Now,they meet local safety standards and at the point of sale,not to mention that they cannot enjoy added protection from the police department— bring cannabis products in or out of the state.It would which hasn't seen any significant increase in the calls be reasonable to anticipate a learning curve while tour- for service. ists and residents adjust to any changes in local and state Complementing these anecdotal reports from city laws.Cities and states have developed public education administrators,the Washington State Institute for campaigns and materials addressing frequent questions Public Policy provides statistics on several types of and assumptions.13 crime in the state since the legalization of recreational Local government leaders in communities electing to cannabis.14 Arrests for drug or narcotic violations allow commercial cannabis activities observed entre- decreased by approximately 15 percent since 2012. preneurial operators tapping into tourism interests. "Incidents"(or investigations,whether resulting in an Many of the states out front early on legalized recre- arrest or not)identified as marijuana-related decreased ational cannabis are home to craft-oriented beer and/or by 63 percent from 2012-2015. Drug-only Driving wine production,which some view as complementary Under the Influence(DUI)arrests,which do not dif- to high-quality,locally produced cannabis.Cities and ferentiate marijuana from other drugs,decreased by regions have also seen a rise in"green tourism"services about a third to approximately 1,200 for 2015.Among such as taxis/limousines and travel/tour agencies. drivers involved in a traffic fatality who are tested for drugs or alcohol,there have been no significant growth Public Safety or decline in those testing positive for marijuana alone or in combination with other drugs or alcohol. Dur- ing that time, incidents identified as amphetamine/ Local governments can anticipate concern that cannabis methamphetamine-or heroin-related increased by businesses may attract criminal activity such as burglary, 72 percent and 41 percent, respectively.A follow up theft,or more serious offenses.The persistence of a can- report released in 2017 found no evidence linking nabis black market—the only market in some states—and LOCALOF • Washington counties'retail cannabis sales with drug- urbs of Kirkland and Issaquah also noted slightly more related convictions.15 intense circulation and parking demand than antici- Safety Hazards pated for their early retail businesses. Interim Issaquah City Administrator Emily Moon noted,"In terms of trip Cannabis product manufacturing/processing often generation, retail marijuana is similar to fast food in involves chemical extractions,through which solvents some ways. It's fairly constant traffic." are used to remove resin from plants and convert it into hash oil.The high-concentrate oil can then be infused Public Health into edibles,tinctures,and other products,or consumed Most states that have legalized adult use of recre- by smoking or vaporizing.Because of the volatile sol- ational cannabis are dedicating a portion of their tax vents used,the extraction process should only take place and fee revenues to public health initiatives,often with in regulated environments using proper equipment and a particular youth focus. safety precautions—otherwise,risk of explosion is high. Debate on legalization tends to be charged with This is enough to dissuade some local governments from conflicting claims about the relationship between can- wanting to allow such activities in their communities. nabis and public health indicators.The Colorado Retail Increased opportunities for legal cultivation of Marijuana Public Health Advisory Committee,a body cannabis,including at the personal scale,may tempt of experts appointed by the Colorado Department of amateur processors to attempt these extractions in Public Health and Environment to provide unbiased unregulated settings such as residential neighborhoods. and transparent evaluation of scientific literature and Beyond the threats to individuals involved and to first data on marijuana use and health outcomes,notes the responders,the extraction process poses the additional complexity of evaluating these associations for strength risk of a fire spreading to other nearby structures.The (or lack thereof)and causality.Its reports break down City and County of Denver experienced nine hash oil the validity of common claims made about youth and explosions between January and September 15,2014, adult use of cannabis and may be helpful to local gov- and the state's primary burn center has seen a spike in ernments in talking through community concerns.19 extraction burn patients since 2012.16 Youth Impacts An Important Distinction Public health experts,including the Colorado com- To be sure,commercial cannabis-related crimes or mittee,do tend to agree that youth abuse of can- safety hazards make the local news,and local govern- nabis can be associated with lower graduation rates ment administrators acknowledged examples ranging and increased susceptibility for addiction and mental from mundane to violent.A common theme,however, health issues. Likewise,opponents and proponents of is their tendency to involve unauthorized cannabis legalization are often united in concerns about poten- activities,such as illegal grow operations in homes or tial increases in use/abuse among young people. But on other private land.17 A black market exists,though evidence that legalization of cannabis significantly its presence varies across communities,so even com- changes patterns of youth use/abuse is lacking. munities electing to ban cannabis to the fullest extent According to the biennial Washington State Healthy possible are vulnerable to these crimes. Youth Survey,rates of current marijuana use stayed relatively consistent for sixth,eighth,tenth,and twelfth Traffic graders from 2012 to 2016(recreational legislation A more practical matter,predicting circulation impacts passed in 2012). Rates do increase across the age of commercial cannabis activities, is an emergent focus groups,from about 1 percent of sixth graders up to for transportation engineers.The County of Santa about a quarter of twelfth graders. Ease of access also Barbara,California, provides an example of a detailed increases by grade,but perception of access remained analysis estimating the potential impacts of seven dif- relatively consistent over time. Four percent of all ferent types of activities along the supply chain.18 Jack- Washington state students were suspended or expelled son County,Oregon observed increased traffic in rural during the 2015-2016 school year.Of those,9 percent neighborhoods since cultivation(both authorized and (less than half a percent of all students)were sus- unauthorized)began to proliferate.The Seattle sub- pended or expelled due to marijuana possession.20 LOCAL IMPACTS OF Colorado's youth surveys yielded similar results.21 habitual cannabis use can lead to"marijuana use dis- Multiple analyses of the biennial Healthy Kids Colorado order"or addiction in its most severe form, but these Survey agreed that marijuana use among statewide types of problems afflict a minority of reported can- youth remained essentially unchanged from 2013 to nabis users.22 NIDA also notes some evidence suggest- 2015,though recreational adult use became legal in ing links between marijuana and other drug use for 2014.These same types of surveys are conducted a minority of cannabis users, but that there are many across the country, regardless of cannabis'current legal complicating factors and further research is needed.23 status. Results of each state's youth surveys are used to There is less dispute that the mind-altering chemicals inform and target education and prevention strategies in cannabis impair judgement,coordination,and reac- that can be funded through legal cannabis revenues. lion time.Depending on the form of consumption,the State requirements will also mandate buffering effects can be delayed and prolonged for hours;traces of of sensitive uses,such as schools,child care facili- the chemicals—though unfelt—can remain detectable in ties,parks,and other youth-serving centers.Typically, the bloodstream for weeks.24 Even in states where rec- local governments will have the right to modify some rational adult use or medical use is legal,it is important of these provisions according to local preferences to remember that all laws and regulations concerning and conditions,though legal opinions vary about the what one cannot do under the influence of cannabis— flexibility to do so.Washington State allows local e.g.,operate a vehicle,show up to work—still apply.The governments to reduce this buffer for everything police department in Kirkland,Washington,was given except elementary and secondary schools and public explicit instructions not to"de-police"these sorts of playgrounds;the City of Kirkland exercised this option behaviors that fall under its purview. Local law enforce- to accommodate businesses around 600-plus feet of ment may benefit from additional training in how to licensed child care centers,given the layout of its zon- identify and confirm potential violations,since assessing ing map.Communities may elect to impose additional the influence of cannabis will typically require a blood restrictions,as was done in Grover Beach,California, test and may not be possible in the field.25 which extended its buffers along designated school Recent studies of states post-legalization have walking routes. seen some upticks in public health statistics related to From 2015 through April 2018,the state of Wash- cannabis use. For example,annual average calls to the ington logged approximately 200 violations for mari- Poison Control Center in Washington increased by 73 juana sale/service to a minor.Approximately one-third percent in the years following legalization.26 Colorado of those were issued in unincorporated areas;the rest also saw increases in marijuana exposure calls,as well were scattered across approximately 50 municipalities as in marijuana-related hospitalizations and emergency over the 3-plus year period. Reflecting on the strict department visits.27 These may be indications of legiti- requirements of Colorado's state inventory tracking mate concerns,such as a need to regulate concentra- system, Durango city staff noted that minors'access to lion and packaging of edible cannabis products(which cannabis was easier to regulate than alcohol. was done in Colorado),and they may be influenced by changes in patient honesty or medical billing prac- tices.And as with all statistics on the industr y,it is too Perspectives on adult use of cannabis and its health soon to tell whether trends will continue,level off,or implications are much more divergent.With a majority reverse. Fortunately, researchers will have access to of states now permitting some degree of medical can- more time-series data from more states as the legal nabis use,clearly there is strong support for its thera- landscape expands. peutic properties in certain situations. But discussions about cannabis as a recreational substance—informed Environment by a blend of evidence and personal values—often con- flate it with alcohol,tobacco,or opioids.Some argue Odor that cannabis is less harmful or habit-forming than It can be a tough call as to which is more pervasive— these other substances;others believe it to be a gate- cannabis odor or the concerns about it.Odor concerns, way to more serious substance abuse.The National whether tied to the plants themselves or the smoke Institute on Drug Abuse(NIDA)acknowledges that from consumption,are legitimate. For some,odor may LOCALOF • trigger allergies or asthma,for others it may simply sustainability goals,climate,and infrastructure,it trigger a reaction based on one's personal views about provides useful overviews and metrics for the resource an historically taboo substance. It is possible for local systems involved in cultivation. regulations permitting cannabis uses to be a recourse Local governments will likely apply building and for those most opposed to its odor,though there are fire safety codes to regulate potential environmental some complicating factors. nuisances and safety concerns related to lighting and In addition to siting activities in appropriate loca- compliance. Light pollution from outdoor cultivation, lions relative to other uses, land use regulations per- volatile extraction processes in manufacturing facilities, mitting activities along the cannabis supply chain will and the extent of personal cultivation allowed in mul- almost certainly include stipulations about odor control, tifamily facilities are all issues that local governments aiming to reduce the likelihood of a nuisance issue. have dealt with using local codes. Regulations provide a means for enforcement;a neigh- bor can complain if aggrieved. Formal litigation of odor Aesthetics nuisance cases has had mixed outcomes,as it can be Finally,local governments will want to consider cannabis' difficult to determine the nuisance threshold or to pin- implications on aesthetics of the natural and built envi- point the precise source. However,local governments ronment.Jackson County,home to a significant share of recently authorizing commercial cannabis activities Oregon's cannabis production,provides an aerial view of conceded that while odor issues may be more common the use's significant impact on its landscape.31 Illegal,and at the onset,they tended to dissipate as businesses to a lesser extent legal,grow operations there pose chal- became"more professional"and are given a chance to lenges to maintaining government survey corners,ripar- improve their odor mitigation systems. ian buffers,and drainage.Municipalities may be more From a consumption perspective and as mentioned concerned about signage,fencing,and generally ensur- in the earlier discussion on tourism impacts, many local ing that the cannabis industry not overtake the charac- governments already have bans in place regarding ter of an urban or suburban environment. Fort Collins, smoking indoors and/or in public places. Land use regu- Colorado prohibited the use of cannabis-affiliated lations for commercial cannabis retail can and typically phrases and images in signs for cannabis businesses. do prohibit onsite consumption. Many municipalities prevent the creation of a cannabis district through clustering by including some method of Resource Impacts business-to-business setbacks in their regulations.Alter- Cannabis cultivation(and to some extent processing) natively,others intend to cluster all cannabis businesses also raises concerns about water,soil,and light/energy in one or few districts,in order to prevent siting in the use,the specifics of which will vary depending on the majority of the municipality while ceding only part. local capacity(climate,infrastructure,etc.)for commer- cial cultivation.Some regulations,whether specific to Summary and Recommendations cannabis or generally applicable to agriculture,will be Based on our research,ICMA offers the following recom- set at the state level,and state departments of agricul- mendations to local governments considering whether ture and natural resources have developed answers to and/or how to allow commercial cannabis activities. frequently asked questions about regulations govern- 1. Assess the federal,state,regional,and local ing cannabis as an agricultural activity and water use.28 contexts for your decision(s).While the letter of Local governments may wish to direct prospective local federal cannabis law has not changed for some growers to pertinent recommendations and regulations time,interpretation and enforcement priorities and clarify where additional local requirements(related continue to shift. But more urgent are condi- to permitting siting,fencing,etc.)may apply,as Jackson lions at the state level and below.Some sample County,Oregon has done.29 questions to consider: The Department of Environmental Health for the a. Does current or pending state law prescribe City and County of Denver,Colorado developed a com- any decision points?Must you opt in or out of prehensive guide to best practices on energy,water, default situations? and waste management for indoor growing facilities.30 b. How did your community vote on past can- Though specifically developed in context of Denver's nabis ballot measures?Do those results entitle LOCALOF you to different powers(such as the ability to tax While states and local governments adopting or the ability to impose a complete ban)?Does early legislation are beginning to generate data, your community lean one way or the other in its figures should still be considered preliminary. opinion on cannabis? Even in states where legalization passed sev- c. What's happening in surrounding communi- eral years earlier, businesses are just starting ties that may impact you?Are the county and to open,following long processes to develop its municipalities talking with each other about regulations and process applications,and local this issue?Are your priorities complementary or leaders are standing by to watch for indications in conflict? that the industry needs more(or less)regulation. d. To what extent can you lean on state regu- "Start early and walk a slow path,"suggested one lations and enforcement?Are regulations California city manager—a sentiment echoed specific enough?Do you believe resources are by many of his peers'actions. Be wary of doors adequate to perform state-level responsibilities? that are difficult to close once opened;consider 2. Assemble a diverse,coordinated leadership sunset provisions or temporary caps as ways to team.Local administrations successfully navigat- test your local market and assure residents that ing the early legal cannabis landscape credited you will continue to revisit regulations and make clear,steady direction from their elected officials— adjustments as necessary. including rationale or objectives for local regula- Endnotes lion—as extremely helpful 32 In addition to elected 1 National Conference of State Legislatures, "Marijuana Laws." officials and chief administrative officers,planning, http://www.ncsl.org/bookstore/state-legislatures-magazine/ police,legal,and finance staff tended to serve in marijuana-deep-dive.aspx critical leadership roles.But cast a wide net across 2 Drug Enforcement Administration, "Drug Scheduling" https:// your organization,as the industry has potential to www.dea.jzov/druginfo/ds.shtmi 3 Office of the Attorney General, "Memorandum for All United impact many additional systems and functions. States Attorneys, Subject: Marijuana Enforcement" January 4, 3. Plan for deliberate,transparent community 2018.https://www.iustice.gov/opa/press-release/file/1022196/ download engagement.Even communities voting strongly 4 Abigail Geiger, "About six-in-ten Americans support g g marijuana in favor of cannabis legalization can still struggle legalization," Pew Research Center. http://www.pewresearch. with implementation33 Provide multiple ways org/fact-tank/2018/01/05/americans-support-mariivana- legalization/ outside of formal meetings and public hearings 5 Daniel Shortt,"Marijuana, Marihuana and Mariguana:What's in for community members to review and com- a Name?," University of Washington Cannabis Law and Policy ment on potential regulations,such as com- Blog,January 21,2016.https://blogs.uw.edu/clpp/2016/01/21/ marijuana-marihuana-and-mariguana-whats-in-a-name/ munity surveys or other online platforms and 6 Julie Martens Forney, "Will Marijuana Cultivation Affect Floral in neighborhood/community-wide events34 Industry?"Society of American Florists,July 26, 2017. https:// Expect questions,expect fears,and be willing safnow.org/will-marijuana-cultivation-affect-floral-industry/ 7 Katy Ward,"Truro farmers want to cultivate cannabis,"Wicked to demonstrate how proposed regulations have Local - Provincetown, February 24, 2018. http://provincetown. accounted for community concerns.Maps show- wickedlocaI.com/news/20180224/truro-farmers-want-to- ing eligible locations for cannabis businesses cultivate-cannabis 8 Richard Fausset, "A Dying Southern Town Needed a Miracle. as well as sensitive uses are very helpful tools, Marijuana Came Calling."The New York Times,March 24,2018. as are summaries of key steps taken and refer- https://www.nytimes.com/2018/03/24/us/arkansas-rnariivana- ence documents posted on your website.While cotton-plant.html time-consuming,local governments following 9 Washington State Institute for Public Policy, "Employment and Wage Earnings in Licensed Marijuana Businesses," this model were comfortable reflecting on their June 2017. http://www.wsipp.wa.gov/ReportFile/1669/Wsipp processes and were later able to make decisions Employment-and-Wage-Earnings-in-Licensed-Mariivana- Businesses Report.pdf without significant debate. 10 City of Santa Rosa Planning and Economic Development, 4. Regularly monitor indicators and review your 'Cannabis Program FAQs" March 15, 2018. https://srcity.org/ regulations.This is a new industry that will con- DocumentCenter/View/18729/Cannabis-FAQs 2018-03- 15?bidld= tinue to experience growing pains,especially as 11 Colorado Tourism Office, "Colorado Tourism Sets All-Time the state and federal context continue to shift. Records for Sixth Consecutive Year"June 28,2017.https://www. LOCALOF • colorado.com/news/colorado-tourism-sets-all-time-records- files/PF Youth HKCS MJ-Infographic-Digital.pdf sixth-consecutive-year 22 National Institute of Drug Abuse, "Is Marijuana Addictive?," 12 Christian M. Wade, "Tourism Officials wrestle with marijuana June 2018. https://www.drugabuse.gov/publications/research- marketing;The Daily News of Newburyport,January 8,2018. repo rts/marijuana/mariivana-addictive htti)://www.newburyportnews.com/news/tourism-officials- 23 National Institute of Drug Abuse,*Is Marijuana a Gateway Drug?;' wrestle-with-mariivana-marketing/article cc0100b4-eab5- June 2018. https://www.drugabuse.gov/publications/research- 5efd-b114-b27852107e3c.html repo rts/mariivana/mariivana-gateway-drug 13 Colorado Department of Public Health and Environment, 24 National Institute of Drug Abuse,"What are Marijuana Effects?," "Responsibility Starts with Knowing the Laws." https// June 2018. https://www.drugabuse.gov/publications/research- responsibilitygrowshere.com/laws reports/mariivana/what-are-mariivana-effects 14 Washington State Office of Financial Management,"Monitoring 25 Police Foundation and the Colorado Association of Chiefs of Impacts of Recreational Marijuana Legalization;' March 2017. Police, "Colorado's Legalizatoin of Marijuana and the Impact https://www.ofm.wa.gov/sites/default/files/public/legacy/ on Public Safety, 2015. https://www.nccpsafety.org/assets/ reports/mariivana_impacts update 2016.pdf files/library/Legalized Marijuana Practical Guide for Law 15 Washington State Institute for Public Policy, 1-502 Evaluation Enforcement.pdf and Benefit-Cost Analysis,"September 2017.http://www.wsipp. 26 Washington State Office of Financial Management,"Monitoring wa.gov/ReportFile/1670/Wsipp 1-502-Evaluation-and-Benefit- Impacts of Recreational Marijuana Legalization," March 2017. Cost-Analysis-Second-Reouired-Report Report.pdf https://www.ofm.wa.gov/sites/default/files/public/­legacy/`­­ 16 Police Foundation and the Colorado Association of Chiefs of reports/mariivana_impacts update 2016.pdf Police, "Colorado's Legalizatoin of Marijuana and the Impact 27 Colorado Department of Public Health and Environment, on Public Safety," 2015. https://www.nccpsafety.org/assets/ "Marijuana use trends and health effects."https://www.colorado. files/library/Legalized-Marijuana Practical Guide for Law gov/cdphe/mariivana-health-report Enforcement.pdf 28 Oregon Department of Environmental Quality, "Permitting 17 There have been multiple instances of people committing violent of marijuana businesses." https://www.oregon.gov/deg/ marijuana-related crime in west coast rural unincorporated areas Regulations/Pages/Mari juana-Regulation.aspx where marijuana is grown,incentivized by the high street value 29 Jackson County Development Services,"Marijuana Production in of marijuana on the east coast. Jackson County, Oregon, and Jackson County FAQ,"July 27,2018.http://i acksoncountvor.org/ Sonoma County,California,have experienced this phenomenon ds/General/Marijuana in recent months,where multiple groups have driven from east coast states in order to rob rural marijuana growers. 30 City and County of Denver Department of Environmental Health, "Cannabis Environmental Best Management Practices 18 County of Santa Barbara, "Cannabis Land Use Ordinance and Guide." https://www.denvergov.org/content/dam/denvergov/ Licensing Program Final Environmental Impact Report,"December portals/771/documents/EQ/MJ%20Sustainability/Best%20 2017.http://Iongrange.sbcountyplanning.org/programs/cannabis/ Practices%20Management%20Guide%20web%20-%20final.pdf Environmental/FEIR/Individual%20Sections/3.12 Traffic SBC CannabisElR_FEIR.pdf 31 Jackson County,"JC Potpourri:Marijuana in Southern Oregon- 19 Colorado Department of Public Health and Environment, Growing Pains; May 10, y-Clo https/ArtMID/11 80/ "Marijuana use trends and health effects."https://www.colorado. orti County/Video JC-P o pourri-Mario p/A-in-So thern- ArticlelD/249662/JC-Potpourri-Marijuana-in-Southern- gov/cdphe/mariivana-health-report Oregon-Growing-Pains 20 Washington State Office of Financial Management,"Monitoring 32 See,for example,Santa Rosa,California case study Impacts of Recreational Marijuana Legalization," March 2017. https://www.ofm.wa.gov/sites/default/files/public/legacy/ 33 See,for example,Kirkland,Washington case study reports/mariivana impacts update 2016.pdf 34 See,for example, Battle Creek, Michigan(https://battlecreekmi. 21 Colorado Department of Public Health and Environment, gov/637/Medical-Marihuana) or Carpinteria, California case "Marijuana Use Among Youth in Colorado,Healthy Kids Colorado study Survey 2015." https://www.colorado.gov/pacific/sites/default/ LOCALOF • r—der',`._' .?r"` X van r;'.•' -lC.`�� ..A4 ` Oki �,i d,... - ryy " •-tsa 'y' �T-t'L..t . n .�t !nf, sus{• ,�;. �.r,, \. �: '• !�r • 'y.,,M�'' ,y:� -.�� .{' •..'.4, ?...gip.•: ,,�+-. - \•+c�A•1`�!V`' { _ •.wy. ♦f._. .i,+r�-T { 1. s.r�ry� H w . r IL The following case studies - describe the motivations, processes, and decisions of `* ! 10 local governments to regulate commercial cannabis activities in their communities. ^, Though selected from states { with longer histories of recreational and medical cannabis laws, these local governments are continuing to monitor the industry and y x `` adapt their strategies. '�- _ :�.r•�`��s yam, _ �� a.. • 1a e` w -y .- Y- 4 Y.tf��1y7� 6� �1• M �,.q..9r-fir.�►. " �. �.�se.t�it8"�.XTJ—ti. I alke�� ty r: Carpinteria is bordered by the Pacific Ocean to the southwest and rural oceanside hills to the -_- southeast,while the areas north and northwest of the city are agricultural zones dotted with greenhouses primarily for the cut flower indus- try.That industry was once a thriving sector in California's economy, but many years of com- petition have decimated it. Greenhouses that once grew flowers are now prime real estate for recreational cannabis cultivation. The marijuana industry has been moving into Car- pinteria Valley greenhouses for years,but the pace of turnover increased once flower growers began to look for more profitable ventures.Some greenhouse tenants e and owners turned to growing vegetables or even stayed ry��c �C with flowers,but many others have converted to grow- CO M r F" G ing cannabis or sold their stake to someone who does. - City and County The City of Carpinteria has instituted a moratorium on Median Household Incoml legal marijuana businesses through May 2019 while it Source:United States Census Bureau continues a deliberate process of determining regula- tions for the city. In contrast,Santa Barbara County _ LOCAL IMPACTS OF • moved quickly to establish regulations for allowing culti- Preserving the Character of Carpinteria vation and other cannabis businesses as soon as Cali- fornia licensing became available.Santa Barbara County Cut Flower Industry is the home of the most cannabis cultivation licenses The Carpinteria Valley cut flower industry had been in California,outpacing the counties of Humboldt, struggling for years due to international competition. Mendocino,and Trinity,counties known for their mari- Low-wage workforces in South and Central America juana cultivation.'All of those licenses in the vicinity left California flower growers unable to compete on of Carpinteria, many of which were originally granted price,leaving many as the owners and lessees of empty for growing medical marijuana,lie on Santa Barbara greenhouses.A number of those greenhouse owners County unincorporated land.Carpinteria's incorporated and lessees turned to cannabis cultivation due to the area does not include the agricultural portion of the high value of the crop.The first to convert were medi- Carpinteria Valley,and the city does not regulate it. cal cannabis cultivators under the previous regime of After the passage of Proposition 64 in November California medical cannabis law. Local governments had 2016,Santa Barbara County first began the process of little to no regulatory or administrative authority over deciding how to approach locally regulating the canna- these operations,leaving unfixed problems that were bis industry.At that point,Carpinteria city officials were generally foreign to flower growers,such as noxious poised to work alongside Santa Barbara County officials odors and security issues.As Santa Barbara County and attended multiple meetings with county officials registers and regulates these operations under the new on the subject. However,it soon became clear that the commercial cannabis regulatory regime,those issues city and the county were guided by different philoso- should subside. phies.Carpinteria's interest in potentially allowing and regulating cannabis businesses stemmed from public / support within the community,but city officials and residents were,and still are,in favor of a cautious and - deliberate approach to developing regulations.Santa Barbara County was under pressure to quickly establish its regulations in order to limit the impact from a large and growing number of unregulated or black-market it- cannabis operations,generate revenues,and create a commercially viable cannabis market as an alternative to lost jobs in the cut flower industry.' These differences in approach forced Carpinteria into a reactionary position.As Santa Barbara County proceeded with its big-picture approach through the Cannabis greenhouse summer of 2017,tension was high in Carpinteria from a frustrating process of legal proceedings.The city Economic Equilibrium was able to extract some of what it wanted from the The City of Carpinteria's interest in strengthening the county,such as a cap on greenhouse canopy size and a county's cap on cannabis cultivation is twofold.One prohibition on outdoor cultivation. concern is ensuring that agriculture in the Carpinte- Currently,the area's cannabis cultivation indus- ria Valley is not dedicated to a single use.The flower try is operating in the California Coastal Zone,which industry decline was especially painful as most green- includes the Carpinteria Valley,through county-issued houses were entirely dependent on it. interim permits until the formal permitting,regulation, Community character and aesthetics comprise the and revenue-collection process passed by Santa Bar- second motivating factor for a cap. In 2002, Santa bara County undergoes a legal review by the California Barbara County enacted an ordinance to preserve Coastal Commission.Cannabis operations in Santa open field agriculture and limit unsightly piecemeal Barbara County outside the Coastal Zone are operating greenhouse construction, but Carpinteria was con- under the county's land use code and Cannabis Busi- cerned that a lack of a regulatory cap on cannabis ness License Ordinance as of June 2018.1 cultivation could undermine that ordinance.A boom- 12 LOCAL IMPACTS OF • ing cannabis cultivation industry could potentially take Key Observations over the Carpinteria Valley's available greenhouses The City of Carpinteria prohibited all commercial activ- and increase the demand for the construction of even ity in the previous medical cannabis regulatory regime, more greenhouses. but the city will potentially allow some commercial At this point in its lifecycle,the cannabis cultivation cannabis operations once their new regulations are industry has different effects on local economic activity developed and adopted.Those operations will likely than the cut flower industry.Observations from Car- be limited to manufacturing and testing to comple- pinteria show that cannabis cultivation generates less ment the already existing cultivation in the Carpinteria intensive industrial traffic than cut flowers. However, Valley.The Carpinteria City Council is not currently that may be offset by increased traffic from laborers. inclined to allow recreational cannabis retail stores and Greenhouse cannabis cultivation uses approximately believes they would cause neighborhood problems,an 595 square feet per worker(FTE),compared to(conser- assumption based on observing the previous iteration vatively)38,314 square feet per worker for cut flower of medical cannabis stores that existed under the ear- growing.'This discrepancy is confirmed anecdotally lier state regulations.The council's preferred approach in Carpinteria,with far more cars parked outside the is to watch the results of recreational cannabis store- greenhouses that have moved to cannabis cultivation fronts in other cities before deciding whether to allow as opposed to those growing flowers or vegetables. them in Carpinteria. Odor Although Carpinteria's long-term priorities are clear, Medical cannabis has been growing and generating City Manager David Durflinger notes that it is chal- odor just outside Carpinteria city limits for the past few lenging for a small local government to develop the years,but the problem worsened when recreational expertise necessary to both interact in a regulatory cannabis was authorized.Agriculture is typically not process with an adjoining county and to develop its subject to odor complaints under Right to Farm pro- own regulations. tections,and Santa Barbara County regulated medical Interviewee: cannabis cultivation in this manner as well.'This led David Durflinger,City Manager to an underenforcement of nuisances like odor and the lack of a regulatory infrastructure at the onset of Endnotes recreational cannabis,with many residents voicing their 1 Brooke Staggs, "So far, California has 6,000 licensed complaints.Carpinteria High School,across the street cannabis businesses. Here's what that looks like' The Orange from several greenhouses that cultivate cannabis,was County Register. April 27, 2018. https://www.ocre&ister. forced to air out classrooms and send home students com/2018/04/27/so-far-california-has-6000-licensed-cannabis- busi nesses-heres-what-that-looks-I i ke/ who were negatively impacted by the odor.b 2 Bozanich,Dennis,email to Will Fricke,July 9,2018. The odor situation has improved in Carpinteria over 3 County of Santa Barbara, "Cannabis Amendments to County the past year as some of the greenhouse cannabis Ordinance Now in Effect" June 7, 2018. http://cannabis. countyofsb.org/news-events.sbc cultivators have started to take steps to prevent odors, 4 William A.Matthews,Daniel A.Sumner,Josue Medellin-Azuara, investing significantly in odor mitigation technology. and Tristan Hanon, "Economics of the California Cut Flower Santa Barbara County cited evidence from San Diego Industry and Potential Impacts of Legal Cannabis,"University of California Agricultural Issues Center,August 30,2017. and established Carpinteria cultivators showing this 5 County of Santa Barbara, "Final Environmental Impact Report technology,called a Vapor-Phase System,to be effec- (EIR) for the Cannabis Land Use Ordinance and Licensing tive in mitigating odors from greenhouse cannabis Program"Page 8-13,December 2017 cultivation facilities.'There are limited number of 6 David Durflinger,interviewed by Laura Goddeeris and Will Fricke, June 26,2018 greenhouses continuing to emit strong odors and oper- 7 County of Santa Barbara, "Final Environmental Impact Report ate without the preventative measures.Those green- (EIR) for the Cannabis Land Use Ordinance and Licensing houses will either be required to mitigate odors in order Program,"Page 8-7,December 2017 to become compliant or will be shut down once Santa Barbara County begins to regulate cultivators within the Coastal Zone following the review by the California Coastal Commission. .1� i x n Grover Beach is a small bedroom community on California's Central Coast, located along the iconic Pacific Coast Highway 1 and U.S. Highway 101, halfway between San Francisco and Los Angeles. The seaside city,along with the neighboring cit- ies of Pismo Beach and Arroyo Grande and the wineries of San Luis Obispo County, is a popular tourist destination. The City of Grover Beach's initial efforts to regulate commercial cannabis activities trace back to late 2015, after the state passed a package of bills outlining new medical cannabis regulations.California local govern- ments were under the direction from the state to pass land use regulations that regulated or prohibited commercial medical cannabis activities; if local govern- COMMUNITY PROFIL ments did not do so,the state would become the sole licensing authority in that municipality. The ultimatum Population caused many local governments, including Grover 13,628 Beach,to pass indefinite or permanent moratoriums on Land Area (square miles): 2.3 commercial medical cannabis activities by the state's March 1, 2016 deadline. Median Household Income: : :• While the moratorium was in effect,the Grover Source:United Stotes Census Bureou Beach City Council directed City Manager Matthew LOCAL20 OF • Bronson and his staff to draft regulations and a pro- city felt comfortable in determining reasonable setback posed tax structure for the purpose of allowing com- requirements to address community needs. mercial medical cannabis activities in the future.Such In addition to stringent cannabis-specific safety and activities were seen by the City Council as an economic security measures that exceed the state's requirements, opportunity for the city in attracting private invest- Grover Beach mandates that commercial cannabis ment and providing additional jobs.The tax structure, businesses make public improvement to their proper- which covered both medical and recreational cannabis ties to meet code requirements,such as fixing curbs, businesses if also allowed by state and local laws,was sidewalks,and landscaping.This mandate is due to approved by 70 percent of voters in November 2016— commercial cannabis businesses needing a discretion- the same election in which the statewide proposition ary use permit to operate in contrast to"allowed"uses to legalize recreational use passed. that do not trigger the same level of code require- ments.City Manager Bronson described these required Regulation Development improvements as an opportunity to"raise the bar"on Between November 2016 and May 2017,Grover the development standards and aesthetics of the city's Beach crafted broad regulations that would allow a industrial areas. Due to the strength of the retail appli- wide range of commercial medical cannabis businesses cants and stringent regulations,Grover Beach increased in the city.Cannabis was on the agenda of multiple its original cap of two retail businesses set in May 2017 public workshops and approximately ten to fifteen to a cap of four in December later that year.As of May planning commission and council meetings,drawing the 2018,the city has issued four retail permits and four largest turnout ever for a council meeting in January manufacturing permits with several other manufactur- 2017. Public engagement has decreased substantially ing permits expected to be issued by mid-2018. over time,even though the regulations established in May 2017 continue to be modified to reflect changes An Economic Development Opportunity made at the state level and the needs of Grover Beach. Grover Beach expects to be a production,distribution, While initial regulations were limited to commercial testing,and retail hub for boutique cannabis products medical cannabis activities only,in May 2018 they due to the city's available industrial land,proximity to were expanded to the recreational or adult-use market major highways,and array of products already being pro- through a series of amendments ultimately approved duced in the area.With the opening of its first cannabis on the council's consent agenda. retail facility in May 2018,Grover Beach has the lone The city allows every type of commercial cannabis commercial cannabis location for well over one hundred license including cultivation,processing/manufacturing, miles.'It is anticipated to cause a significant increase in testing,distribution,and retail.All cultivation must be business from locals as well as tourists heading to the conducted in an enclosed indoor space;both outdoor adjacent Pismo State Beach,many of whom are from the and greenhouse cultivation are explicitly prohibited in commercial cannabis-free California Central Valley. Grover Beach given concerns about security and ensur- ing architectural compatibility with buildings in an indus- As a City Manager looking at economic develop- trial zone.(Other cities ban greenhouse cultivation due ment, I see the opportunity to create a cannabis to operating hours enforcement and the potential for a ecosystem in our community given our unique dispute over the definition of a greenhouse.) niche in this field." Like some other built-out or compact cities,Grover — Matthew Bronson Beach chose to reduce certain sensitive-use setbacks— in this case,setbacks related to youth centers.This Grover Beach has made a market-based choice to is because the state's default setbacks would have embrace the commercial cannabis industry in a thought- resulted in a de facto ban on commercial cannabis ful and safe manner.Existing businesses in the city are businesses,given the proximity of Grover Beach youth generally supportive of the move to allow commercial centers to industrial zones where cannabis businesses cannabis development,but there have been impacts would otherwise be allowed.With local regulations still from this changing market condition.The intention to restricting cannabis businesses to industrial areas,the create a free and open market for commercial cannabis LOCALOF • Key Observations Grover Beach moved forward with the intention of treating this industry as a major economic development opportunity.The relative equidistance between Los �+ 1 Angeles and San Francisco,lack of commercial canna- bis activity in in the area,and available industrial land 114 marked Grover Beach as an ideal location for com- mercial cannabis businesses to open distribution and manufacturing operations. While motivated by economic development,the city's approach has been measured.Grover Beach has leveraged its industry assets to gain additional value r•;.' _ from these businesses through required property Courtesy of Grover Reach improvements.At the same time,the city has continued Opening day for Grover Beach's first retail cannabis establishment. to adapt its tax scheme to ensure the businesses aren't has caused land value in the industrial park area to rise, driven back underground. and the rent for existing business owners has risen with It is also worth noting perhaps the biggest risk of it.Some businesses have had to relocate to other parts making this industry part of an economic development of the city,and some have left Grover Beach entirely. strategy:it exists in the shadow of the federal govern- Nevertheless,the city expects a significant overall net ment. Manager Bronson notes that any new or more increase in the number of businesses,jobs,and tax rev- aggressive enforcement has potential for a "chilling enues due to the influx of commercial cannabis. effect"on the industry both statewide and in Grover The coastal California city will be looking to multiple Beach.The inability of cannabis businesses to use the metrics forjudging the initial success of commercial banking system,given federal restrictions,is also a cannabis,mainly tax revenue and the number of new continued challenge given the scale of the multi-billion- businesses.Grover Beach's tax structure is a 5 percent- dollar cannabis industry. tax on gross retail receipts and 3 percent on gross Thus far, however,Grover Beach has instituted a receipts of manufacturers,distributors,and other com- thorough process to develop and tweak regulations mercial uses. It also includes a$5 per square foot tax on that have helped the public and business community cultivation uses. to buy in.The public has since complimented the city One of Grover Beach's objectives was to not tax on how regulated the industry is,and as a result, has cannabis businesses back into the underground been supportive of its local growth. Evidence from economy.The 5 percent tax on gross retail receipts this case and others suggests that starting with strin- was originally 10 percent,as approved by the voters. gent regulations on commercial cannabis,and slowly The City Council lowered the rate in order to follow relaxing them until the desired outcome is reached, is the general rule of thumb to not exceed a 30-percent a more effective method than attempting to tighten effective tax rate on an industry.Total revenues from already relaxed regulations. commercial cannabis businesses are forecast to climb Interviewee: from approximately$700,000 in the first fiscal year toward up to$1.5 million annually once the industry Matthew Bronson,City Manager matures,which would equate to nearly 20 percent of Endnotes the city's general fund.The city conservatively esti- mates the recent expansion to the adult-use market 1 Monica Vaughan,Brad Branan,and Nathaniel Levine,"SLO county is a 'pot desert'now—but not for long.A dispensary will open may yield a 25-percent increase in revenue. soon"The Tribune, March 26, 2018. http://www.sanluisobispo. com/latest-news/article206482199.htmI LOCAL22 OF • A r '..►.ate � ,r. t ' --u.,�t1���� e i�.: 'A - M N. A � Pacifica is a seaside San Francisco suburb of nearly 40,000 residents. Lying on the Pacific Ocean side of San Mateo County, Pacifica is a popular surfing and hiking destination. Cannabis legalization had overwhelming support from Pacifica residents as well as from the city council.The council acted swiftly in March 2017 to begin the process of allowing cannabis businesses in the city,holding a joint study session with the Pacifica Planning Commis- sion.This study session was followed by planning com- mission and council meetings,which provided direction regarding the authoring of the ordinances that would allow commercial cannabis operations in Pacifica. The ordinances,which were adopted in July 2017, would be triggered by the passing of a local excise tax on the gross receipts of cannabis sales.Seventy-nine , percent of voters voted in favor of the tax,enacting the COMMUNITY PROFILE ordinances to allow legal cannabis operations.' Pacifica decided to allow retail,manufacturing,and Population �' testing businesses, but decided against allowing com- Land Area (square .6 mercial cultivation in the city. Unlike its neighbor to the Median Household Income: , south, Half Moon Bay, Pacifica does not have green- houses or agricultural business infrastructure. Outdoor Sout cultivation of any significant scale would have been inconsistent with the suburban character of the city. LOCAL34 OF The Ordinances operation.Council retained the option to decrease or Pacifica has two ordinances regulating cannabis opera- increase the rate up to 10 percent after two yearS.3 tions.The first is a public safety ordinance,adminis- Upon launch of the licensing process,the city received tered by the Pacifica Police Department,which governs over thirty applications for cannabis businesses. the operation and licensing of cannabis businesses, requires background checks of owners and employees, Public Safety and includes other safety requirements such as tech- While Pacifica has had illegal medical cannabis dispen- nological and physical security systems. It also includes saries operating since 2010,calls for service regarding provisions to curb nuisances such as loitering. illegal cannabis were few.The illegal establishments Pacifica's ordinances are stringent with respect to likewise were not a burden on law enforcement. How- nuisance effects,with applicants required to prove that ever,those establishments did not report burglaries their business will not be a nuisance. and other crime on their property due to the risk of The second ordinance governs the cannabis zoning facing charges themselves.With legalization,the now- regulations in Pacifica.The city created five overlay legal businesses follow common sense safety regula- districts for retail cannabis businesses: Fairmont,Linda tions while falling under the protection umbrella of the Mar, Park Pacifica, Rockaway Beach,and Sharp Park. Pacifica Police Department. Each overlay district is limited to two retail businesses, "Changes in culture statewide have caused a para- and in total no more than six retail businesses are permitted in the city.2 Pacifica set these limitations due digm shift in the way cities and law enforcement are to concerns about overconcentration,particularly in approaching decisions regarding cannabis busi- economically depressed areas.Cannabis testing and nesses. Our community and council have expressed manufacturing businesses are not restricted to the their desire for this program to exist in Pacif ca. It is overlay districts;those businesses are allowed within our job to administer the program in a way that pro- certain existing commercial zones. Pacifica also reduced motes safety and fosters a positive and collaborative one of the state's default sensitive use setbacks,from relationship with cannabis business owners." 600 feet to 200 feet for day care centers, because that — Dan Steidle setback was perceived as overly restrictive. Finally,the ordinance clarified local regulations for personal cul- tivation,including a prohibition on the use of artificial The city reached out for assistance and examples of how light for plants grown outdoors. to regulate its cannabis industry.It looked to large cities Together,these ordinances created a four-phase in the area such as San Francisco,Berkeley,and Oakland, process for establishing cannabis businesses in Pacifica, but the beach town nature and lack of a large commer- involving a license and land use entitlement: cial sector in Pacifica made comparisons difficult.A more 1. Public safety license applications are submitted beneficial route was working with experienced consul- to the police department for review. tants on the business aspects of regulations. 2. Security plans are submitted to the police Interviewees: department for review. Lorenzo Hines,Assistant City Manager,Tina Wehrmeister, 3. Use permit applications are submitted to the Planning Director,Dan Steidle,Chief of Police planning department for review and public hear- ing with the planning commission. Endnotes 4. The police chief issues licenses after confirming 1 County of San Mateo, Assessor-County Clerk-Recorder & compliance with preceding steps. Elections, "November 7, 2017 Consolidated Municipal, School, and Special District Election' https://www.smcacre.or_g/post/ Pacifica launched this process directly after the november-7-2017-0 enactment of the ordinances following the November 2 Municipal Code, Article 17.5 "MO Marijuana Operation 2017 election,when the local excise tax was passed. Overlay District' https://I?brary.municode.com/ca/pacifica/ codes/code of ordinances.nodeld=TIT9PLZO CH4ZO The local tax,initially set at 6 percent of gross receipts ART17.5MOMAOPOVDI S9-4.1753OVDICR for the first two years,was projected by city staff to 3 Municipal Code,Article 17.5,Sec. 9-4.1753, "Overlay districts generate$420,000 in the industry's first full year of created." http://www.cityofpacifica.ora/civicax/filebank/ blobdload.aspx.BloblD=12901 a CASE STUDY: Santa Rosa, California E t Santa Rosa is the largest city in Sonoma County and California's Wine Country.The city is known for its diversity,with a large Mexican-American and LGBT community. In October 2017, severe wildfires destroyed thousands of homes in Santa Rosa. History/Background Medical cannabis dispensaries have been allowed in Santa Rosa since 2005,but other aspects of the cannabis industry were only authorized in early 2016. Prior to the passage of Proposition 64 in California,the Santa Rosa City Council authorized the licensing of medical cannabis cultivation,manufacturing,testing,and distribution. Santa Rosa was ahead of the curve with respect to California municipalities,making it clear after the pas- COMMUNITY PROFILE sage of Proposition 64 that it wanted to broadly allow commercial cannabis businesses.City officials recog- •. .• nized the cannabis industry was already operating in Land Area(square miles): 51.29 Santa Rosa, both through black market activity and the "gray market"state-sanctioned medical dispensaries Median Household ,1111m" that operated without local input. In legitimizing the ource: , . s Census Bureau industry,the Santa Rosa City Council and administra- tion saw an opportunity to ensure compliance with LOCAL36 OF COMMERCIAL "It was important to have a clear direction from the council on what the approach was going to be." F —Sean McGlynn permitting, planning,and public safety standards and to create a revenue stream for the city.The city also * , reasoned that any part of the industry not officially � permitted would continue to operate in Santa Rosa + •� without regard for negative externalities,hence their , decision to allow all elements of the supply chain from cultivation through retail sales. Process and Regulations Cannabis oil "Bring certainty to a very uncertain landscape"was a up the issue at more than twenty full or subcommittee driving philosophy in Santa Rosa's efforts to carefully meetings and implemented a series of interim regula- and thoughtfully regulate the commercial cannabis lions before finally passing a comprehensive ordinance industry.The city council—leaning on its background in in early 2018.When it finally came up for public hear- public safety—prioritized developing a path to compli ing,the pressing issues had been thoroughly discussed ance and building trust between the community and the industry. between residents and administrators, leading to an undramatic and anti-climactic vote. "The motivation was to get more people to Santa Rosa favored a transparent approach and be compliant so that they could be legitimate. decided against administratively approved permits for most cannabis businesses.Instead,it opted to issue use We Could tax it, And Actually make it part of permits through a process requiring public notices and, our Community." in many cases,public hearings and action by the plan- - Clare Hartman ning commission.It allows cannabis businesses to be City staff and the City Council's Cannabis Policy located in the same areas as their non-cannabis coun- Subcommittee members were tasked with learning all terparts. Recognizing additional concerns associated they could about the cannabis industry and its poten- with cannabis,including those gathered from public tial effects on infrastructure, health,services,and outreach,the city was proactive in layering additional more.Setting up an interdepartmental work team,staff regulations related to security protections,standards to reached out to their counterparts in other communities prevent odor,and sensitive use setbacks.While public in Colorado,Oregon,and Washington with experience interest has been piqued by businesses proposed in in regulating cannabis. But as an early community to close proximity to residential areas,these regulations have generally provided sufficient assurances to neigh- opt-in on legal cannabis,Clare Hartman,Santa Rosa's deputy director- planning,acknowledged that"we borhoods'nuisance concerns. were building the program as it was happening to us:' Growing a Compliant Industry Over the course of two years,Santa Rosa admin- istrative and planning staff took time to attend com- Thus far,Santa Rosa has approved over forty land use munity and neighborhood meetings in order to address permits for cannabis cultivation(indoor only, including concerns over specific land use permitting for cannabis greenhouses),manufacturing,testing,distribution,and businesses.The presence of former Santa Rosa Police medical retail businesses.Commercial retail applica- Chief Tom Schwedhelm and Cannabis Policy Subcom- lions were accepted in April 2018 and will proceed mittee member Ernesto Olivares,a former Santa Rosa through the evaluation and conditional use permit police lieutenant,likely helped some residents feel process through the rest of the year.There is no explicit more comfortable that the public safety aspect of can- limit on the number of cannabis business licenses, nabis businesses was being considered.Council took though 600-foot setback requirements for cannabis LOCALOF • retail businesses to prevent over-concentration and Key Observations buffer sensitive uses implicitly cap that sector.' Many manufacturers of cannabis products were Santa Rosa believes that its permissive early approach already operating in Santa Rosa when the city began was the correct one.Observations of other jurisdictions showed that a piecemeal approach,prohibiting certain creating its cannabis land use regulations and licensing the industry.The pre-existing businesses were often sectors of the cannabis industry while allowing others, not operating in appropriate areas,such as in resi- was ineffective in quelling the problem of black market deuces or in residential zones. Many have since found businesses. Preferring to allow the industry to operate legitimate and licensed locations,and some existing and regulate it led the city to permit indoor/greenhouse businesses partnered to share the cost of moving and cultivation despite limited presence of any other agri- cultural activity within city limits. licensing. Providing a path to compliance has also enabled the city to learn more about the industry's ing a path to compliance,which provided the motiva- Staff credit the council for its clear direction regard- operators,which notably include a share of single, female head-of-households. lion and resources necessary to coordinate across Absent an explicit cap,the market for appropri- diverse stakeholders,including an industry not accus- tomed to working with government.This process ate commercial and industrial land has proved to be a challenge for cannabis businesses in Santa Rosa,which opened up opportunities to build trust and navigate compete against each other as well as with comple- ambiguity around public safety and code enforcement. mentary boutique tourism industries such as brewer- Other communities in the region have followed suit. ies and wineries. Industrial land vacancy rates have Cloverdale,Cotati,and Sebastopol,incorporated cities with populations of 8,618,7,265,and 7,379,respec- dropped from 12.2 percent in 2014 to 4.6 percent in 2017.2 But Santa Rosa is wary of letting cannabis busi- lively,decided to allow commercial cannabis activities nesses dominate its economy,as the region is in the such as cultivation and manufacturing after observing process of rebuilding from the recent wildfires,and the Santa Rosa and having conversations with Santa Rosa city wants to ensure space for contractors and specialty planning staff; like Santa Rosa,these communities have the intention of benefiting through regulatory control trades,among many other industries.The city con- of commercial cannabis and associated tax revenue. venes an interdepartmental follow-through program to monitor the cannabis industry's growth and consider Interviewees: potential interventions in response to local effects or Sean McGlynn,City Manager modifications to the state law. Clare Hartman,Deputy Director-Planning Though Santa Rosa regulations intentionally direct commercial cannabis businesses away from residen- Endnotes tial land,the abundance of cannabis cultivation in the region is causing problems for law enforcement. 1 City of Santa Rosa,"Cannabis FAQ's:Distance to School"https:// srcity.org/DocumentCenter/View/18731/Distance-to-school Between February and May 2018,multiple home inva- 2 City of Santa Rosa Planning&Economic Development,"Cannabis sions took place in Sonoma County,including two in Permitting Update;' January 12, 2018. https://srcity.org/ Santa Rosa.These crimes target private residences that DocumentCenter/View/18714/2018-01-12-Cannabis-Permit- Activity-Update legally grow cannabis for personal use,which are not 3 "Sonoma sees spate of marijuana-related home invasions," required to follow the strict security regulations that The Mercury News, May 4, 2018. https://www.mercurynews. licensed cannabis businesses abide by. Law enforce- com/2018/05/04/sonoma-county-Sees-Spate-of-mariivana- related-home-invasions/ ment believes the illegality of cannabis on the east coast and the resulting high street value is at the root of the problem.3 About the Authors Laura Goddeeris,AICP,oversees ICMA's applied research on local government practices,programs, partnerships, and policies as Director of Survey Research. Prior to joining ICMA,she gained over a decade of experience in research,outreach,and program administration around issues of community and economic development, local and regional food systems,and transportation science.While based in Michigan,she also worked closely with municipal staff for years as chair of her local planning commission and community development advisory committee. Laura holds a Master's in Urban Planning and Policy from the University of Illinois at Chicago. Will Fricke is member of ICMA's Research and Policy Team,carrying out research projects and survey research. His work covers a wide array of topics such as service delivery,land use,and form of government.Will is a graduate of the University of Connecticut. LOCALOF • ■ INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION 777 N. Capitol St. NE, Ste. 500, Washington, DC 20002 202.962.3680 1202.962.3500 (f) I icma.org Q1197M Co, JN�FIEp S Zay `y Desert Sands Unified School District 0 y BERM"A DUNES r 47-950 Dune Palms Road• La Quinta,California 92253 • (760)771-8508•FAX: (760)771-8522 RANCHO MIRAGE C PALM DESERT y BOARD OF EDUCATION: vs COACHELLA a Michael Duran,Donald Griffith,Dld B.GWendyJonathan,Linda Porras,G Tomak �QLAOD I OTA I N y7� Y SUPERINTENDENT:Scott L.Bailey City of Palm Desert -BUSINESS SERVICES- February 26,2018 MAR 0 6 2018 Lauri Aylaian,City Manager Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert,CA 92260 Re: Resolution No. 16/2017-2018, of the Board of Education of the Desert Sands Unified School District Declaring Concerns Regarding Cannabis Business Activity Within the District and Seeking Interagency Cooperation and Coordination with Regard to the Regulation of Cannabis Business Activity to Protect Student Health and Safety Dear Ms.Ayalian: This letter is to notify that the Board of Education of the Desert Sands Unified School District(DSUSD) recently adopted the resolution referenced above and attached hereto.We are requesting that you please review the resolution and provide a copy of this letter and the resolution to your City Council and Board of Directors. In addition,the DSUSD is requesting the following: 1. To be invited to actively participate in decisions by the Cities and the County regarding cannabis business activity regulation within the District's jurisdiction and the establishment of frameworks for cannabis- related regulatory schemes that are protective of student health and safety, and that all the Cities and the County recognize the need for interagency coordination and cooperation with each other and the District for the protection of all children in the region. 2. Requests that all Cities and Riverside County provide the District with notice regarding cannabis-related regulatory and permitting decisions, including but not limited to: all notification lists for notices, agendas, meetings of any of the Cities' or County councils, planning commissions, and any other public body charged with the development and enforcement of policies and issuing of licenses under which businesses can cultivate, manufacture, test, distribute, sell, transport, or organize (i.e. event organizing) recreational and medical marijuana along with all documents,notices and applications of entities seeking to establish a cannabis-related business within the Cities and/or the County. Please direct all correspondence related to these matters to the following representatives: James Novak,Ed.D,Assistant Superintendent,Business Services Patrick Cisneros,Director of Facilities Services If you have any questions or would like to discuss this information further, please do not hesitate to contact me at (760)771-8508. Sinc ely, --`IX es Novak,Ed.D.,Assistant Superintendent,Business Services Attachment Resolution No. 16/2017-2018 cc: Ryan Stendell, Director of Community Development,Planning Division f RESOLUTION NO: 16/2017-2018 RESOLUTION OF THE BOARD OF EDUCATION OF THE DESERT SANDS UNIFIED SCHOOL DISTRICT DECLARING CONCERNS REGARDING CANNABIS BUSINESS ACTIVITY WITHIN THE DISTRICT AND SEEKING INTERAGENCY COOPERATION AND COORDINATION WITH REGARD TO THE REGULATION OF CANNABIS BUSINESS ACTIVITY TO PROTECT STUDENT HEALTH AND SAFETY WHEREAS, the Desert Sands Unified School District ("District") is located in Riverside County ("County") and serves public school students in the Cities of Indio, La Quinta, Palm Desert, Indian Wells, Bermuda Dunes, Rancho Mirage, and Coachella (collectively "Cities"); WHEREAS, in November 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act, which: (1) allows adults 21 and over to possess, privately use, and give away up to one ounce of cannabis, and to cultivate no more than six plants for personal use at their residence; and (2) legalizes the commercial sale, distribution and production of cannabis for adult use at state-licensed facilities beginning January 1, 2018, under specified terms; WHEREAS, inherent in the District's Governing Board ("Board") duties is the duty to protect the health, safety, and well-being of its students; WHEREAS, the Board and District have concerns about the impacts of widespread cannabis business activity and an increase in the availability and use of cannabis and cannabis-related products on District students; WHEREAS, some of the Board's concerns include: cannabis use and consumption near and on school sites; increased use of, and/or easier access to, cannabis and cannabis-related merchandise by students near or on their way to and from school; establishment of distances between cannabis businesses and school sites that are sufficient for protection of health and safety; the control of signage drawing attention to cannabis establishments; management of odor resulting from cultivation and/or other manufacturing of cannabis that increases awareness of the location of cannabis establishments; establishment of security measures that prevent crime and loitering at such businesses and near schools; prevention of underage entry into cannabis businesses; prevention of any increase of impaired driving; and provision of effective drug prevention education; 1 J WHEREAS, most of the Board's concerns are echoed by parents of students within the District, and parents look to the Board and the District to ensure that student health and well-being is safeguarded; WHEREAS, local city and county governments are charged with the regulation of the sale, manufacture, cultivation and distribution of legal marijuana, and may impose restrictions on such activities within their jurisdictions; WHEREAS, the regulatory schemes and licensing requirements for each of the Cities, and even the County, will likely differ, while the impact of varying and inconsistent approaches to the regulation of cannabis business will negatively affect the District, whose students live in and attend schools located within the boundaries of all of the Cities and whose schools are located within all of these jurisdictions; WHEREAS, the Board and District must offer a consistent approach and voice to represent the interests of K-12 students residing within the District and across all the Cities, especially with respect to assuring a standard level of protection of the students' health, safety and well-being across the Cities' varying regulatory schemes, making it a necessary participant in all City and County decisions concerning cannabis regulations and/or businesses; WHEREAS, as the sole representative of the interests of K-12 students, the District will also offer a unique perspective in the development of responsible County and/or City regulations and ordinances, the approval of business licenses, the determination of cannabis business locations, effective drug prevention education, and other cannabis-related City and County decisions, making it a necessary participant in all such proceedings; WHEREAS, to ensure the uniform protection of District students across the Cities, and that District's and parents' concerns are properly addressed, the Board requests that the District be invited to actively participate in decisions by the Cities and the County regarding cannabis business activity regulation within the District's jurisdiction and the establishment of frameworks for cannabis-related regulatory schemes that are protective of student health and safety, and that all the Cities and the County recognize the need for interagency coordination and cooperation with each other and the District for the protection of all children in the region; WHEREAS, with this Resolution the District requests that all Cities and Riverside County provide the District with notice regarding cannabis-related regulatory and permitting decisions, including but not limited to: all notification lists for notices, agendas, meetings of any of the Cities' or County councils, planning commissions, and any other public body charged with the development and enforcement of policies and issuing of licenses under which businesses can cultivate, manufacture, test, distribute, sell, transport, or organize (i.e. event organizing) recreational and medical marijuana, 2 along with all documents, notices and applications of entities seeking to establish a cannabis-related business within the Cities and/or the County. NOW, THEREFORE, the Board of Education of the Desert Sands Unified School District herby finds, determines, declares, orders, and resolves as follows: Section 1. The above recitals are true and correct. Section 2. The Board is concerned about the effect of widespread cannabis business activity and a corresponding increase in the availability and use of marijuana and related products on K-12 students and owes a duty to its students to protect their health, safety, and well-being. Section 3. The District can uniquely contribute to the development of cannabis regulatory schemes within the County and the Cities to ensure that measures are in place to protect children. District participation in the development of cannabis regulatory schemes, the issuance of licenses, the determination of cannabis business locations, effective drug prevention education, and all other cannabis-related decisions in the County and Cities, each of which may have differing regulations and/or license requirements, will ensure that consistent protections are in place for K-12 students, while simultaneously giving a voice to and addressing the District's and student parents' concerns. Section 4. The Board hereby requests that the Cities and the County work together to establish common frameworks and requirements for the regulation of cannabis business activity on issues that affect children throughout the region, and invite the District to be an active participant in the development of these frameworks to ensure that the perspective of educators and parents are present in decision making. Section 5. The District hereby requests that it be placed on all notification lists for notices, agendas, meetings of any of the Cities' or County councils, planning commissions, and any other public body charged with the development and enforcement of policies and issuing of licenses under which businesses can cultivate, manufacture, test, distribute, sell, transport, or organize (i.e. event organizing) recreational and medical marijuana, along with all documents, notices and applications of entities seeking to establish a cannabis-related business within the Cities and/or the County. Section 6. The Superintendent and his designees are authorized, pursuant to this Resolution, to take any action and execute any documents that are necessary to carry out, give effect to, or comply with the terms and intent of this Resolution. 3 PASSED, ADOPTED and APPROVED by the Board of Education of the Desert Sands Unified School District on this 20th day of February, 2018. AYES: Griffith, Duran, Porras, Jonathan, Tomak NOES: o ABSENCE: o ABSTENTIONS: o By: P ent, Board of Education By: Vi4Prp6idP�nt,-Boar�qdfEducation By: Member, B of Education By: Member, Board of Education By: Member, Board of ucation 4 ���a� s 'S V ,tdw I l gag C!yo Desert Sands Unified School District 0 0 BE"' DUNES P 47-950 Dune Palms Road-La Quinta,California 92253 - (760)771-8508 - FAX: (760)771-8522 RANCHO MIRAGE O Ffs P CLIM DESERT y BOARD OF EDUCATION: � Qu1NTA 4 Michael Duran,Donald B.Griffith,Wendy Jonathan,Linda Porras,Gary Tomak p INDIO y SUPERINTENDENT:Scott L.Bailey -BUSINESS SERVICES- February 26,2018 Ctty of Palm Desert . Lauri Aylaian,City Manager MAR 0 2 Z018 City of Palm Desert 73-510 Fred Waring Drive Community Development Palm Desert,CA 92260 Re: Resolution No. 16/2017-2018, of the Board of Education of the Desert Sands Unified School District Declaring Concerns Regarding Cannabis Business Activity Within the District and Seeking Interagency Cooperation and Coordination with Regard to the Regulation of Cannabis Business Activity to Protect Student Health and Safety Dear Ms.Ayalian: This letter is to notify that the Board of Education of the Desert Sands Unified School District(DSUSD) recently adopted the resolution referenced above and attached hereto.We are requesting that you please review the resolution and provide a copy of this letter and the resolution to your City Council and Board of Directors. In addition,the DSUSD is requesting the following: 1. To be invited to actively participate in decisions by the Cities and the County regarding cannabis business activity regulation within the.District's jurisdiction and the establishment of frameworks for cannabis- related regulatory schemes that are protective of student health and safety, and that all the Cities and the County recognize the need for interagency coordination and cooperation with each other and the District for the protection of all children in the region. 2. Requests that all Cities and Riverside County provide the District with notice regarding cannabis-related regulatory and permitting decisions, including but not limited to: all notification lists for notices, agendas, meetings of any of the Cities' or County councils, planning commissions, and any other public body charged with the development and enforcement of policies and issuing of licenses under which businesses can cultivate, manufacture, test, distribute, sell, transport, or organize (i.e. event organizing) recreational and medical marijuana along with all documents,notices and applications of entities seeking to establish a cannabis-related busin Cities and/or the County. P1 ect all correspondence related to these matters to the ing representatives: James Novak,Ed.D,Assistant Superintendent,Business Services Patrick Cisneros,Director of Facilities Services I yo uss s information further, please do not hesitate to contact me at (760)771-8508. Sinc ely, es Novak,Ed.D.,Assistant Superintendent,Business Services Attachment Resolution No. 16/2017-2018 cc: Ryan Stendell,Director of Community Development,Planning Division RESOLUTION NO: 16/2017-2018 RESOLUTION OF THE BOARD OF EDUCATION OF THE DESERT SANDS UNIFIED SCHOOL DISTRICT DECLARING CONCERNS REGARDING CANNABIS BUSINESS ACTIVITY WITHIN THE DISTRICT AND SEEKING INTERAGENCY COOPERATION AND COORDINATION WITH REGARD TO THE REGULATION OF CANNABIS BUSINESS ACTIVITY TO PROTECT STUDENT HEALTH AND SAFETY WHEREAS, the Desert Sands Unified School District ("District") is located in Riverside County ("County") and serves public school students in the Cities of Indio, La Quinta, Palm Desert, Indian Wells, Bermuda Dunes, Rancho Mirage, and Coachella (collectively "Cities"); WHEREAS, in November 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act, which: (1) allows adults 21 and over to possess, privately use, and give away up to one ounce of cannabis, and to cultivate no more than six plants for personal use at their residence; and (2) legalizes the commercial sale, distribution and production of cannabis for adult use at state-licensed facilities beginning January 1, 2018, under specified terms; WHEREAS, inherent in the District's Governing Board ("Board") duties is the duty to protect the health, safety, and well-being of its students; WHEREAS, the Board and District have concerns about the impacts of widespread cannabis business activity and an increase in the availability and use of cannabis and cannabis-related products on District students, WHEREAS, some of the Board's concerns include: cannabis use and consumption near and on school sites; increased use of, and/or easier access to, cannabis and cannabis-related merchandise by students near or on their way to and from school; establishment of distances between cannabis businesses and school sites that are sufficient for protection of health and safety; the control of signage drawing attention to cannabis establishments; management of odor resulting from cultivation and/or other manufacturing of cannabis that increases awareness of the location of cannabis establishments; establishment of security measures that prevent crime and loitering at such businesses and near schools; prevention of underage entry into cannabis businesses; prevention of any increase of impaired driving; and provision of effective drug prevention education; 1 WHEREAS, most of the Board's concerns are echoed by parents of students within the District, and parents look to the Board and the District to ensure that student health and well-being is safeguarded; WHEREAS, local city and county governments are charged with the regulation of the sale, manufacture, cultivation and distribution of legal marijuana, and may impose restrictions on such activities within their jurisdictions; WHEREAS, the regulatory schemes and licensing requirements for each of the Cities, and even the County, will likely differ, while the impact of varying and inconsistent approaches to the regulation of cannabis business will negatively affect the District, whose students live in and attend schools located within the boundaries of all of the Cities and whose schools are located within all of these jurisdictions; WHEREAS, the Board and-District must offer a consistent approach and voice to represent the interests of K-12 students residing within the District and across all the Cities, especially with respect to assuring a standard level of protection of the students' health, safety and well-being across the Cities' varying regulatory schemes, making it a necessary participant in all City and County decisions concerning cannabis regulations and/or businesses, WHEREAS, as the sole representative of the interests of K-12 students, the District will also offer a unique perspective in the development of responsible County and/or City regulations and ordinances, the approval of business licenses, the determination of cannabis business locations, effective drug prevention education, and other cannabis-related City and County decisions, making it a necessary participant in all such proceedings; WHEREAS, to ensure the uniform protection of District students across the Cities, and that District's and parents' concerns are properly addressed, the Board requests that the District be invited to actively participate in decisions by the Cities and the County regarding cannabis business activity regulation within the District's jurisdiction and the establishment of frameworks for cannabis-related regulatory schemes that are protective of student health and safety, and that all the Cities and the County recognize the need for interagency coordination and cooperation with each other and the District for the protection of all children in the region; WHEREAS, with this Resolution the District requests that all Cities and Riverside County provide the District with notice regarding cannabis-related regulatory and permitting decisions, including but not limited to: all notification lists for notices, agendas, meetings of any of the Cities' or County councils, planning commissions, and any other public body charged with the development and enforcement of policies and issuing of licenses under which businesses can cultivate, manufacture, test, distribute, sell, transport, or organize (i.e. event organizing) recreational and medical marijuana, 2 along with all documents, notices and applications of entities seeking to establish a cannabis-related business within the Cities and/or the County. NOW, THEREFORE, the Board of Education of the Desert Sands Unified School District herby finds, determines, declares, orders, and resolves as follows: Section 1. The above recitals are true and correct. Section 2. The Board is concerned about the effect of widespread cannabis business activity and a corresponding increase in the availability and use of marijuana and related products on K-12 students and owes a duty to its students to protect their health, safety, and well-being. Section 3. The District can uniquely contribute to the development of cannabis regulatory schemes within the County and the Cities to ensure that measures are in place to protect children. District participation in the development of cannabis regulatory schemes, the issuance of licenses, the determination of cannabis business locations, effective drug prevention education, and all other cannabis-related decisions in the County and Cities, each of which may have differing regulations and/or license requirements, will ensure that consistent protections are in place for K-12 students, while simultaneously giving a voice to and addressing the District's and student parents' concerns. Section 4. The Board hereby requests that the Cities and the County work together to establish common frameworks and requirements for the regulation of cannabis business activity on issues that affect children throughout the region, and invite the District to be an active participant in the development of these frameworks to ensure that the perspective of educators and parents are present in decision making. Section 5. The District hereby requests that it be placed on all notification lists for notices, agendas, meetings of any of the Cities' or County councils, planning commissions, and any other public body charged with the development and enforcement of policies and issuing of licenses under which businesses can cultivate, manufacture, test, distribute, sell, transport, or organize (i.e. event organizing) recreational and medical marijuana, along with all documents, notices and applications of entities seeking to establish a cannabis-related business within the Cities and/or the County. Section 6. The Superintendent and his designees are authorized, pursuant to this Resolution, to take any action and execute any documents that are necessary to carry out, give effect to, or comply with the terms and intent of this Resolution. 3 PASSED, ADOPTED and APPROVED by the Board of Education of the Desert Sands Unified School District on this 20th day of February, 2018. AYES: Griffith, duran, Porras, Jonathan, Tomak NOES: o ABSENCE: o ABSTENTIONS: o By: �-- dent, Board of Educatio By: Vice Rr6s-10ent, Board o ducation By: Member, Board of Education By: - - Member, Board of Education By: Member, Boar o ducation 4 Our Voice: Palm Desert eyes wise pot business regulations Local Journalism-Lives Here.Just$10/month LEARN MORE (HTTP://OFFERS.DESERTSUN.COM/SPECIALOFFER? The Desert Sun Editorial Board Published 4:42 p.m.PT Oct.11,2017 GPS- SOURCE=BENB(MONTH_ABBREVIATED)&UTM_MEDIUM=NANOBAR&UTM_SOURCE=BOL EXCHANGE&UTM_CAMPAIGN=READLOCALI7) Palm Desert is poised to cast aside its ban on marijuana dispensaries.And that,in the end,will be a good thing for residents. The city is among four in the mid-valley—with La Quinta, Indian Wells and Rancho Mirage—that do not allow ~� marijuana businesses other than medical delivery firms to operate within their borders. In the wake of California's statewide legalization of adult use of the drug,the city has revisited the issue. (Photo:Getty Images file) The City Council is set to vote Thursday,Oct. 12,on a closely vetted ordinance that sets the rules for retail, cultivation, and testing operations.The ordinance also contains regulations for personal use growing—a right all Californians enjoy thanks to last November's statewide voter approval of Proposition 64,the Adult Use of Marijuana Act. MORE: Council delays action to tweak proposed pot ordinance(/story/news/local/palm-deserU2017/09/28/palm-desert-delays-pdecision-pot-shops-el- paseo-brings-pro-con-arguments-pot-sales-rodeo-drive-deser/712977001/) Full disclosure:The Desert Sun Editorial Board argued last fall that voters should reject Proposition 64,saying it failed to address key concerns, especially when it comes to public safety.We saw as a fatal flaw the measure's lack of a DUI standard for marijuana. Meanwhile, pot-related DUI arrests, crashes and fatalities have spiked in Colorado and Washington since those states legalized recreational use of the drug. That ship has sailed, however. Now that use of pot is legal and businesses selling it to any adult who wants to buy could begin opening just a few short months from now in other Coachella Valley cities, Palm Desert is wise to set up its own regulatory system. Rather than just maintain a ban,as some other valley cities are doing for now, Palm Desert will best serve its diverse population by working to shape the industry in a deliberate,rational way.As a city allowing pot businesses, Palm Desert will be in line for state grants funded through an anticipated$1 billion-plus in excise taxes Sacramento expects to collect from the industry each year. Whether it allows businesses within its own borders or not, Palm Desert will see the effects of legalization. It cannot ban residents from using marijuana or even growing their own.Access to the state's new marijuana tax fund—which, under Proposition 64,is dedicated to paying for things like substance abuse programs and enforcement costs—will help the city cover as yet unknown social costs stemming from legalization. Down the road the city can set up its own tax structure on marijuana businesses as has been done in cities like Palm Springs to further help cover city expenses. The prospect of a pot shop locating alor tony El Paseo shopping and entertainment corridi raised some eyebrows(the ordinance would allow one such business to have an El Paseo 3ss). Join now for as low as $10/month Subscribe Now (http://offers.desertsun.com/specialoffer? gps- source=BEAZ{month_abbreviated}&utm_medium=agilityzone&utm_source=bounce- exchange&utm_campaign=UWEB2017) i We fully expect that city officials as well as the commercial interests invested in the city's flagship district will exercise extreme vetting of any and all seeking a conditional use permit to open a pot shop there. Such scrutiny should be the standard for all such operations in the city,regardless of location. The ordinance gives city officials the tools and authority—background checks,financial disclosure, insurance requirements,etc.—to complete such vetting. It also lays out other rules for pot businesses—such as minimum distances from schools and daycare centers and limits on concentration of such operations as well as rules for personal growing—that are in the public's best interest. We recommend that the council approve the ordinance as a smart step in regulating an industry that will boom in coming years. Read or Share this story: http://desert.sn/2wOA8wp • AIR CONDITIONING OR PLUMBING EMERGENCY » N1 F I' I CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT INTEROFFICE MEMORANDUM To: Lauri Aylaian, City Manager From: Ryan Stendell, Director of Community Development Date: December 4, 2017 Subject: Conditional Use Permit Fees for Cannabis Uses The Community Development Department will be accepting Conditional Use Permits (CUP) for the licensing of cannabis businesses beginning the week of December 11, 2017. Typically, the fee for this permit is $2,894 due at the time of application submittal and held as a trust deposit (TD). Rather than create an excessive number of TDs, the following process is proposed for permit intake: 1. Receive CUP applications and a fee of $552.00. The $552.00 is based on four (4) hours of Planning Department staff time to review the application for completeness. This fee will not be held in a TD. 2. For completed applications, the applicant will be notified that the balance of the permit fee in the amount of $2,342.00 is due to move forward with the second phase of the review process (selection criteria ranking). A TD will be created for the balance. If I can provide additional information, please call me at Extension 386. Submitted By: RYAN STENDELL, DIRECTOR OF COMMUNITY DEVELOPMENT cc: Robert Hargreaves, City Attorney Janet Moore, Director of Finance Eric Ceja, Principal Planner -T11 1, 0 KVET 109 where every day is Veterans day Indian Nation Network TheBroadcastCenter Education and Information Television & Nlulti-Media Prourumming 10 . 16 . 2017 City of Palm Desert Council Members It is my understanding that the owner of the Medical Marijuana dispensary, P . S .A. Organica Palm Springs, Julie Montante will be applying for a Medical Marijuana dispensary license in the City of Palm Desert to be known as Palm Desert Organica . Beginning in late 2016 I started to investigate the uses of CBD and THC medical marijuana for arthritis pain . For reasons that I am going to be disclosing during an upcoming series of programs, on December 22, 2014 I had a medical procedure that resulted in my doctor recommended order to no longer take any pain medication such as Aleve, which had worked effectively for the past 18+ years for my inherited arthritis . I have never been a user of any form of Marijuana, however when I learned that a strain of Medical Marijuana called CBD was now available in a safe form, including Pharmaceutical grade, I reached out to several dispensaries, both here in the Coachella Valley and Los Angeles and the oldest one in California, Harborside in Oakland, California . I did not realize any pain relief for any of the CBD products that I bought . E I =Z Nd 1Z 100 Lift �o -183S30 W1Vd Further research resulted in meeting Julie Montante at her Palm Springs dispensary. I brought with me all the CBD products that had previously been recommended for me . Julie went through a detailed education of what I had been taking without any pain relief and then made recommendations . Her recommendations were direct and uncomplicated . Our region consists of a large population of seniors who, usually beginning at the age of about 50+, begin to experience health issues normal for the aging process . This population needs educating to eliminate the "perceived negative opinion" of Medical Marijuana... specifically the use of CBD with the related THC products . Once Julie educated me on these products...I once again did my research and then purchased the products that I thought would reduce or eliminate my arthritis pain . On a scale of 1 to 10...I was constantly at a 9+ . My MD recommended a prescription for a pain medication which I took per instructions . This was successful in reducing my pain by about 60% . Big problem, I immediately gained 10 pounds . Unable to fit into my clothes, Pepe the Taylor became my new best friend. Taking and adjusting the CBD/THC combinations took time and the right educatiori..but I am now 90%+/- pain free . As leaders of the City of Palm Desert, you have total control over the ability for your citizens in need of physical pain relief to experience the same education that I have determined can only be found thru the expertise of Julie Montante . Also...just as important as her educational abilities is the purity of her products . No other dispensary would afford me the opportunity to research their growing facility. I spent several hours with Julie and her growing staff at their Palm Springs growing facility, learning exactly how they are able to control the pure, organic growing process for the base medical marijuana products she z offers in her dispensary . Julie will soon be processing the pure oils from the plants . These oils are what I take . It is very important to understand that pharmaceutical prescription pain medications for inflammation, inflammation being the root cause of arthritic pain, does not reduce the inflammation enough to get to the root cause. With the educational information that Julie provided me, I learned to safely begin the use of these Medical Marijuana products...that I knew were safe, both in substance and dosage to begin to permanently reduce my inflammation . Based on all of my research and my professional journalistic investigative skills, I am asking you to approve the application of Julie Montante for the professional Medical Marijuana dispensary in the City of Palm Desert . Should you want more information from me or want me to address this important application before your public comments time during a Council meeting, I am prepared to do so . Thank you for your time to read this and vote to approve the dispensa application of Julie Montante . Patti Patane pattipatane.com patti(d,Patti patane.com 760.578.0580 3 RECEIVED Stanley, Jane CITY CLERK'S OFFICE POW From: Victoria Luick <vluick@icloud.com> 2611 OCT 24 PM 3: 50 Sent: Tuesday, October 24, 2017 3:47 PM To: sjohnathan@cityofpalmdesert.org; Kelly, Kathleen;weber Cc: Aylaian, Lauri Subject: Cannabis on El Paseo Good afternoon City Officials, After reading the minutes from your recent council meeting regarding cannabis dispensaries within the City of Palm Desert, I am perplexed on how you differentiate between the "high end stores" and the"others"along El Paseo. Apparently you feel the businesses east of Larkspur are of a lower grade than those west of larkspur, and that a cannabis store would be acceptable with the local retail,restaurant and other businesses along the eastern portion. There are plenty of places in Palm Desert available not along El Paseo. El Paseo is truly a tourist destination, but is also a family destination with its variety of restaurants, retails stores, and other businesses. And because it is a family destination for shopping and dining, I do NOT feel it is the location for a cannabis dispensary. El Paseo means"the walk". Families walk El Paseo both cast and west of Larkspur. Children are inquisitive and like to look into windows and doorways. That is just their nature. There are sufficient problems for children growing up in today's world, and no adult should have to explain why a store if"off limits". If the City chooses to have a cannabis dispensary on El Paseo, then locate it on the second floor of any one of the buildings on El Paseo. There are several with space available. At least then the families including grandmothers out shopping with the grandchildren will not have to explain what cannabis means or anything else. And, please do not insult the businesses east of Larkspur. They may not be the Guccis of the area, but they support the city like everyone else. If a cannabis dispensary is good enough for the City and good enough for El Paseo, then it is good enough for anywhere along El Paseo between Highway I I I on the east and Highway 1 I I on the west. First a cannabis dispensary, next a liquor store and finally a tattoo parlor will be coming to the"Rodeo Drive of the the desert"once the door is opened. Of course they will all be "high end" stores. Thank you for your time. I hope you will reconsider placement of the dispensary. Palm Desert is an easy city to navigate and everything is within easy reach for people. Victoria Luick Palm Desert i I i 45-025 Manitou Drive, Suite 3 - Indian Wells, CA 92210 Phone 760.360.7666 Fax 760.262.3957 Roba`RobBernheimer.com October 23,2017 Hon.Jan Harnik, Mayor Hon. Sabby Jonathan, Mayor Pro Tern Hon. Kathleen Kelly,Council Member Hon.Gina Nestande, Council Member Hon. Susan Marie Weber,Council Member City of Palm Desert 73510 Fred Waring Drive Palm Desert,CA 92260 m Re: Selection Criteria for Commercial Cannabis Businesses _r Resolution 2017-74 --� �m Agenda Item X IV A—October 26, 2017 m mrn Z 1Nm Dear Mayor, Mayor Pro Tern and Council Members: cm 1� co 2 I have reviewed proposed Resolution 2017-74 regarding the Selection Criteria for Commercial Cannabis Businesses. As I understand the process as proposed, each applicant can receive a score of either I or 0 in each of five categories, with a top score of 5. If multiple applicants within 1,500 feet each have a total score of 5 (or the same highest score),staff proposes a lottery to select the operator. This process does not nearly assure Palm Desert of selecting the best operator with the highest likelihood of meeting Palm Desert's standards or quality of life. In order to better assure Palm Desert selects the best applicant, I propose 2 changes. First,the City should consider assigning a score of 1-5 for each category. If one proposal really stands out from the others, even if they each otherwise address the category, the better proposal can score higher. Second,the City should consider adding three additional categories. /0) Ownership of Premises. Does the Applicant or one of its principals own, rather than lease,the proposed cannabis location. This demonstrates a greater investment and commitment to Palm Desert. ✓ (2) Longevity in Business in Palm Desert. Has the Applicant or one of its principals been in business in Palm Desert for at least 10 years. This demonstrates the Applicant understands Palm Desert and its quality of life. 06� —14, PO �kvKz,�,,,, 9 w,►;rxd Cl r,. rRBERT A. BERNHEIMER Desert Planning Commission October 23,2017 Page 2 (3) Financial Strength of Applicant. The Applicant should submit its financial statement to demonstrate an ability to operate the business with a minimum of$1,000,000 in cash reserves. This demonstrates the Applicant has the ability to make sure the business has the resources to follow through on the commitments in its application. Using these additional criteria,with a range of scoring,will allow Palm Desert to select the best of the best, not leaving to a lottery the potential of picking a mediocre operator that happens to meet 5 criteria. Thank you for your consideration of these changes to proposed Resolution 2017-74. Cor ially, Robert A. Bernheimer cc: Ryan Stendell, Director of Community Development Eric Ceja, ApssoGiate Planner 7-'rerA CON TRACT NO. C36660 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: January 11, 2018 REQUEST: Approve a professional services agreement with Barrister Professional Services, LLC, in the amount not to exceed $100,000 to perform background checks for Cannabis Regulatory Permit applicants Recommendation By Minute Motion: 1. Waive bidding requirements in accordance with Palm Desert Municipal Code (P.D.M.C). 3.32.090 "Exemptions." 2. Authorize an agreement with Barrister Professional Services, LLC, in the amount not to exceed $100,000 to perform background checks for the City's initial Cannabis Regulatory Permit process. 3. Authorize the City Manager to execute said agreement. 4. Authorize staff to estimate revenues to the Cannabis Fund in the amount of $100,000, which will be deposited by commercial cannabis applicants, and appropriate $100,000 in the Cannabis Fund for the purposes of conducting background investigations. Strategic Plan This action has no impact on the Strategic Plan. Executive Summary Approval of staffs request will approve a professional services agreement with Barrister Professional Services, LLC, (Barrister) for the purposes of conducting background investigations related to commercial cannabis businesses. Additionally, staffs recommendation would estimate revenues to the Cannabis Fund, which will be reimbursed to the City through each application for a cannabis business license. Background & Analysis Commercial cannabis applicants are required to clear background checks as part of the City's regulatory application process. This requirement for a background check is January 11, 2018 - Staff Report Background Checks for Cannabis Regulatory Permits Page 2 of 2 imposed by most jurisdictions in the State that permit cannabis businesses. Staff had requested that the Riverside County Sheriffs Department conduct background checks on cannabis applicants, similar to background checks performed for other business operators, including massage establishments. However, the Sheriffs Department has declined to participate in the review of cannabis applications. Per P.D.M.0 Chapter 3.32.090 "Exemptions" contracting for professional services, which by their nature are unique or not subject to competition shall not be subject to the bidding requirements established in Chapter 3 "Revenue and Finance"with City Council approval. Staff is recommending that the City Council approve an exemption for this service as the service is unique based on the following: • Total contract amount is unknown and is based on the number of applicants and the depths of their backgrounds. • Investigators require high levels of security clearances and access to federal law enforcement databases. • Investigators require knowledge and familiarity with cannabis businesses and operations. Regardless of the exemption, staff made a good faith effort and solicited professional services by posting a 5-day Request for Proposals (RFP). Only Barrister submitted a proposal and, based on a recommendation from the Sheriffs Department, reputation, expertise, and cost, staff is recommending that the City contract with Barrister. Barrister is a licensed private investigation company located in Redlands, California, and consists of retired law enforcement professionals and private investigators. Barrister has performed professional background services for 33 jurisdictions that permit cannabis businesses, including Cathedral City. The cost associated with the contract will be reimbursed to the City by the cannabis applicants via a reimbursement agreement. Cannabis applicants will be required to provide a $3,000 deposit with the City, which will be used to pay Barrister for their background services. Staff will direct Barrister not to exceed the $3,000 limit per applicant unless authorized by City staff. Staff would only authorize a limit increase if the applicant provides additional funds for the deposit. Fiscal Analysis A new fund has been established by the City Council for any fees collected through the cannabis application process. Applicants are required to submit a deposit to the City for the estimated cost for Barrister to complete background investigations. The cost to perform the background investigation will be reimbursed by the applicant. There is no net fiscal impact or contribution expected by the City. January 11, 2018 —Staff Report Background Checks for Cannabis Regulatory Permits Page 2 of 2 Prepared by: E 'c Qeja, Principal Planner LEGAL REVIEW DEPT. REVIEW FINANCIN, REVIEW CITY MANAGER Ryan tendell Robert W. Hargreaves Director of Community Janet Mo re Lauri Aylaian City Attorney Development Director o inance City Manager APPLICANT: City of Palm Desert ATTACHMENTS: 1. Draft Professional Services Agreement CONTRACT NO. C36660 CANNABIS BACKGROUND CHECKS CITY OF PALM DESERT PROFESSIONAL CONSULTANT SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this 11 th day of January 2018, by and between the City of Palm Desert, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260 ("City") and BARRISTER PROFESSIONAL SERVICES, LL.C., a Private Investigation and Consultant Company, with its principal place of business at 1447 Ford Street, Suite 100, Redlands, CA ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. RECITALS. 2.1 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional background investigations and consulting services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional background investigations and consulting services to public clients, is licensed in the State of California, and is familiar with the cannabis regulatory permit and cannabis ordinances of the City. 2.2 Project. City desires to engage Consultant to render such professional background investigations and consulting services for the background check requirements for cannabis regulatory permit applicants, (C 36660 project ("Project") as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional background investigation and consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. CONTRACT NO. C36660 3.1.2 Term. The term of this Agreement shall be from January 11, 2018, to June 30, 2018, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than one additional one-year term. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor: Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Lance K. Bauer. 3.2.5 City's Representative. The City hereby designates Eric Ceja, Principal Planner, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). Consultant shall 2 Uodate 04/08/2014 CONTRACT NO. C36660 not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant, but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which increase the Scope of Work or change the Consultant's total compensation, subject to the provisions contained in Section 3.3 of this Agreement. 3.2.6 Consultant's Representative. Consultant hereby designates Lance K. Bauer, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3 UDdate 04/08/2014 CONTRACT NO. C36660 3.2.10 Insurance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. General Liability insurance: Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement. Automobile Liability Insurance: Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. Professional Liability Errors & Omissions Insurance: Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. Workers' Compensation Insurance: Consultant shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, agents, employees and volunteers. Other provisions or requirements Insurance for Subconsultants: All Subconsultants shall be included as additional insureds 4 Update 04/08/2014 CONTRACT NO. C36660 under the Consultant's policies, or the Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the Subconsultant's policies. Consultant shall provide to City satisfactory evidence as required under Insurance Section of this Agreement. Proof of Insurance: Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. Duration of Coverage: Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Consultant, his agents, representatives, employees or subconsultants. City's Rights of Enforcement: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. Acceptable Insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. Waiver of Subrogation: All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City of Palm Desert, and shall require similar written express waivers and insurance clauses from each of its subconsultants. Enforcement of Contract Provisions (Non Estoppel): Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. Primary and Non-Contributing Insurance: All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions. Requirements Not Limiting: Requirements of specific coverage features or limits contained 5 Update 04/08/2014 CONTRACT NO. C36660 in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. Notice of Cancellation: Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. Additional Insured Status: General liability, Automobile Liability, and if applicable, Pollution Liability, policies shall provide or be endorsed to provide that the City of Palm Desert and its officers, officials, employees, and agents shall be additional insureds with regard to liability and defense of suits or claims 'arising out of the performance of the Agreement; under such policies. This provision shall also apply to any excess liability policies. City's Right to Revise Specifications: The City reserves the right at anytime during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant's compensation. Self-Insured Retentions.: Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. Timely Notice of Claims: Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. Safety: Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. Additional Insurance: Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 3.3 Fees and Payments. 6 Uodate 04/08/2014 CONTRACT NO. C36660 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed One Hundred Thousand Dollars ($100,000) without authorization of the City Council or City Manager, as applicable, per the Palm Desert Municipal Code. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non- disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without authorization from the City Council or City Manager, as applicable, per the Palm Desert Municipal Code. 3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit "C" may be adjusted each year at the time of renewal as set forth in Exhibit "C." 3.3.6 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seg., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4 Accounting Records. 3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during 7 Uodate 04/08/2014 CONTRACT NO. C36660 normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.5 General Provisions. 3.5.1 Termination of Agreement. 3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. 3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose.- Consultant: Barrister Professional Services, LLC 1447 Ford Street, Suite 100 Redlands, CA 92374 ATTN: Lance K. Bauer City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 ATTN: Eric Ceja, Principal Planner Such notice shall be deemed made when personally delivered or when mailed, forty- eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.5.3 Ownership of Materials and Confidentiality. 3.5.3.1 Documents & Data: Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of 8 Uodate 04/08/2014 CONTRACT NO. C36660 authorship fixed in any tangible medium of expression, including but not limited to, physical drawings and data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.5.4 Cooperation, Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 3.5.5 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 3.5.6 Indemnification. 3.5.6.1 Scope of Indemnity. To the fullest extent permitted by law, Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 3.5.6.2 Additional Indemnity Obligations. To the fullest extent permitted by law, Consultant shall defend, with counsel of City's choosing and at Consultant's own cost, 9 Uodate 04/08/2014 CONTRACT NO. C36660 expense and risk, any and all claims, suits, actions or other proceedings of every kind covered by Section 3.5.6.1 that may be brought or instituted against City or its directors, officials, officers, employees, volunteers and agents. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, volunteers and agents as part of any such claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any settlement paid by City or its directors, officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City's attorney's fees and costs, including expert witness fees. Consultant shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents, or volunteers. 3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. 3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.5.13 Construction; References: Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.5.14 Amendment: Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other 10 Uodate 04/08/2014 CONTRACT NO. C36660 default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.5.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.5.17 Invalidity, Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation, or to undertake self- insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. 3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6 Subcontracting. 3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 11 Update 04/OB12014 CONTRACT NO. C36660 CITY OF PALM DESERT CANNABIS APPLICANT BACKGROUND CHECKS By: By: Mayor or City Manager Lance K. Bauer ATTEST: By: Rachelle D. Klassen City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney 12 Update 04/08/2014 CONTRACT NO. C36660 EXHIBIT "A" SCOPE OF SERVICES III£-@ 1Y19S➢!1.lR� iti�tlion PrOlVain will be admini,icrcJ in.m abbreviated maruter consivent with CA RO S I SuutdardvPalm Ikscn'%Policies and procedures.Rarricter's Proposal with Palm fksert Provides specific imetugation guidelines which haac been e%ubhsheJ in a Daily Imevigatinn and Consulting oudme specifically dcsrgned for Palm lksert. Sec tiath below is the profio%cd outline of Palm rk-un'a and Rarrivrer's Daily Inw,tigati,e Aclic dies I. ln,calrRati,m Prmcdurc A Recap.Routing.and Asi)gnmcnl for Investigation 1 Pro:edtuc a) The Vitt of Palm Dew. ri-Bamver,-Secure Database Ytrrlal" III INwilment'Informauon fransfer."Call-In Regon" c) Region-Coachctla i-allay"I ocatma'Ass)gnment R Communiea 1011 belwMI the C It%of Palm Desert and Barrister I 1h,City of Palm lksctt at City Allow,.City Personnel Rarrivt•r a! Contact Perwtnncl,Background Inacstigatorf v) C Inaesugatisc Sen'iccc 1 Contact and initiate llaakitrou d Inv"Igation within 24 hour(s) at Commwaq lkcclor4nen1Depanment-"Dispa)san Condilional I.sc Pcrrnit" b) Liac Stan.City of Pjlrn Dcwrt 11) Convictions,(Yes No) QI C'unracls with Law tin6trccinmi IYcs:Vo) U Contaat with Applicant Ill Introduction by Background Invc-diptor Jt Dixtancnlatitm i l i Valid('A Urii.eCs 1 icenac'Idcnlilicaoon l and t('olar Photocopy) (2) Still Photograph of Applican: i?) :4 year"Residential!(istxy'• IJI lntnlc%a Statements tt) Pubhc Rcwrd Searches 1(1) Parole Stang (?) Probation Status is- Written Report 0 Regon DI%tribu:itrt Ili ('ny Atlomc),'s 0114v 12, C,h o!Palo.Iksn l i, IY.fKn Inraoganrn•1cr)nn a: A;n•.rs RcctKJ. Ili -hnes(Wh.e tile 1u) 1e 4 p i i'r t'umm,mieaa.+n Na,vJ. M )I,,.u,nrm Innplae, r 1• t T111�1' VIA M 1 r':TY tut PM%1111tS1 RT I IN I1%KRIS1I K 461001-A 1a,1'1-Nt.\Is) 1 1."I and I<W t ..a,ut„nr.aam a: IIAKt m P. ar; �. I v,rl hn�Nipalnn o Pudic, b, b<nwo e, PFCk-I tank N, uer I m ill I:npaw<mrnt%uthunranun v !'aWM NII,tPhupcof w.,rk and 11a1pcta.'�'Nrlal Ik,ur. appr.,rimatel.?n w''tit noun I r ).per 11.)ekgmunJ In,C,ncanon) r r ?6mn4rtna and St;am Rcpunirp pt tn,evapator Inm:onp Req:nremcm, u F,hcc hk 5cr Kc, ct Prcr,ned�me Pa..i,I,r I or Jt tndas—,luthnnrohar: T. FAx I:ch,nrt sa,ye ni work mJ n:ataet, t'r \pmii—itit and Sato.Rcptrtu:p NI l nn<u'.•anl I...n.in,: h P,, P,u,i,kr. ar pW4.is CONTRACT NO. C36660 EXHIBIT "B" SCHEDULE OF SERVICES JANUARY 2018 • EXECUTE PROFESSIONAL SERVICES AGREEMENT FEBRUARY 2018 • COMPLETE BACKGROUND CHECKS MARCH 2O18 • PROVIDE CITY ATTORNEY'S OFFICE WITH OFFICIAL RECOMMENDATIONS ON CANNABIS APPLICANTS CONTRACT NO. C36660 EXHIBIT "C" COMPENSATION PREFERRED CLIENT FEL SCHEDULE FOR HANDLING BACKGROLND Ili VF.STIG ATION(Sl A preferred client hourly rate schedule has been developed for the City of Palm Desert for providing Background Investigation(s) and the endeavors by Barrister's Investigative persorutel. Barrister will provide these services to Palm Desert at the Preferred Client Fee Schedules set forth below. If additional services are requested by Palm Desert beyond handling Backgound Investigation(s),Barrister will provide these services to Palm Desert at the Preferred Client Fee Schedules should those services becorne necessary. . All rates arc based on Specialty and.Level of Expertise. Barrister will utilize the lowest priced qualified person to provide required services. • Background Investigator 00.00"'hour • Investigator(other) $125.00.-hour • Consultant $100.001tour • Futen�iu Accuufusut $80-125.00,hour • Forensic Computer Examiner $65.150.001.hour • C;raphic Artist $40-75.00 hour • Clerical $30-35.00?hour Lxpenses shall be invoiced at cost_ Travel and out of pocket expenses such as facsimiles, telephone. postage, copies,couriers,transportation and meals for Investigators) working in the field are invoiced at cost. Mileage is billed at the current IRS approved rate. For overnight stays,the U.S. Government applied Per Diem rate is charged. RECEIVED CITY OF PALM DESERT CITY CLERK'S OFFICE PALM DESERT r A �_•�� 73-510 Fred Waring Drive Palm Desert, California 92260-2578 201 DEC 20 AM 1 I: 02 Tel: (760) 346-0611 Fax: (760) 776-6417 info @ palm-desert.org REQUEST FOR PROPOSALS FOR PROFESSIONAL PLANNING SERVICES PUBLIC NOTICE IS HEREBY GIVEN that the City of Palm Desert hereby issues a Request for Proposals (RFP) from private investigators, security, and background investigation consultants qualified to review, investigate, inquire, interview, analyze, provide technical assistance, and make recommendations to the City for background investigations into Commercial Cannabis applicants. Consultants will be evaluated on the basis of firm experience, qualifications of key personnel, location of office (with preferential consideration given to firms located in the Coachella Valley), and cost. Firms interested in receiving the complete RFP may do so by contacting: Ryan Stendell Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Tel: (760) 346-0611, Extension 386 Email: rtendell@cityofpalmdesert.org The City reserves the right to postpone selection for its own convenience, to withdraw this RFP at any time, and to reject any and all proposals without indicating any reason for such rejection. As a function of the RFP process, the City of Palm Desert reserves the right to remedy technical errors in response to the RFP and to modify the published scope of services and scope of work. Proposals submitted in response to the RFP will not be returned. All proposals in response to this RFP are due no later than 5:00 p.m. on Wednesday, December 27, 2017. Eight copies of proposals should be delivered to: Ryan Stendell, Director of Community Development, City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, CA 92260. All questions regarding this RFP shall be directed to Eric Ceja, Principal Planner at (760) 346-0611, Extension 384. rm Sii a RESOLUTION NO. 2017-74 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: October 26, 2017 REQUEST: CONSIDERATION OF APPROVAL OF SELECTION CRITERIA FOR COMMERCIAL CANNABIS BUSINESSES Recommendation Waive further reading and adopt Resolution No. 2017- 74 establishing selection and prioritizing criteria for Conditional Use Permits for commercial cannabis businesses. Strategic Plan The selection criteria established for review of potential commercial cannabis businesses contributes to the Land Use elements of the Envision Palm Desert Forward Together strategic plan. Specifically, the criteria contribute to: 1 . Land Use, Housing, and Open Space Priorities: "Enhance Palm Desert as a first- class destination for premier shopping and national retail businesses." The selection criteria for review of cannabis businesses ensures that any commercial cannabis business will conform to strict operational standards and that all businesses are attractive and contribute to the image and aesthetic quality of the City. Executive Summary In review of the cannabis ordinance, the City Council directed staff to establish objective criteria for a merit-based review and prioritization of potential commercial cannabis businesses. Staff has researched criteria established in merit systems in cities around the state, and focused on five (5) criteria that staff believes are important to the City. Those criteria are the following: 1 . Location and Neighborhood Compatibility 2. Security Plan 3. Experience and Qualifications of Professionals 4. Building Fagade and Interior Improvements 5. Community Benefits These criteria, established by a City Council Resolution, will ensure that any potential cannabis business is objectively reviewed for business and retail quality, and safety and 7 2500.007 07\3023 8903,1 DRAFT 10/17/17 October 26, 2017— Staff Report Selection Criteria for Commercial Cannabis Businesses Page 2of2 that priority in granting conditional use permits will be given to the most qualified applicants . Background & Analysis Several selection-based systems for cannabis businesses have been established around the State for small and large jurisdictions alike. There are no set or required selection criteria imposed by the state and each city may establish criteria that best suit local conditions. Below is a list of common selection criteria established throughout the State: • Location • Neighborhood Compatibility • Community Benefits • Safety and Security • Environmental Benefits • Quality Control/Product Safety • Non-Profit/Medical Preference • Labor or Employment • Business Experience and • Local Enterprise Competency No city has incorporated all of the criteria above, and many cities assigned various point values to each criterion to weigh those criteria deemed most important. Staff believes that criteria for a merit-based review should be as objective as possible and should only emphasize criteria most important to Palm Desert. Therefore, staff is proposing five (5) criteria, each with an equal weight, to be used during the review of Conditional Use Permits for commercial cannabis businesses: • Location and Neighborhood Compatibility • Security Plan • Experience and Qualifications of Professionals • Building Fagade and Interior Improvements • Community Benefits Definitions of each of the above criteria are provided in Exhibit A of the draft resolution attached to this report. The Cannabis Ordinance contains several limitations on where a business can locate, distancing requirements from schools, other uses, and other cannabis business, and limits the total number of retail cannabis operators permitted to operate in the City. Staff will accept and review completed Conditional Use Permits applications for cannabis businesses. Completed applications will then be judged against the selection criteria established in the attached resolution. In the event that the initial review process yields any tie scores, staff will use a lottery as a final means of prioritizing applications. This process has been recommended by the City Attorney as the most legally defensible approach. 72-W).W707\302 38903.1 URAIT 10/17/17 October 26, 2017 — Staff Report Selection Criteria for Commercial Cannabis Businesses Page 2 of 2 Fiscal Analysis There is no fiscal impact related to staff's request. Prepared by: Ed Oeja, Principal Planner LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A Robert W. Hargreaves Ryan Stendell City Attorney Director of Community Janet Moore Lauri Aylaian Development Director of Finance City Manager APPLICANT: City of Palm Desert ATTACHMENTS: 1 . City Council Resolution No. 2017- establishing criteria for Conditional Use Permits for Commercial Cannabis Businesses. 72500.00707130238903. DRAFT 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING SELECTION CRITERIA TO BE USED DURING THE REVIEW OF CONDITIONAL USE PERMITS FOR COMMERCIAL CANNABIS BUSINESSES CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article Xi, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulation and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 12th day of October, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code of the City of Palm Desert, and adopted Ordinance 1329 establishing commercial and personal cannabis regulations and a conditional use permit review process, and WHEREAS, Section 25.34.120(C)(1) provides a limit of six conditional use permits for retail cannabis businesses, including up to one on El Paseo; the City anticipates that there may be more applicants than available permits; and WHEREAS, Section 25.34.120(D) provides distance standards that may limit the number of conditional use permits in a given area; and WHEREAS, the City Council of the City of Palm Desert, Califomia, directed staff to establish a selection criteria for review of commercial cannabis business during the conditional use permit process to ensure that only quality operators are permitted in the City and to provide a basis for prioritizing applicants should the number of applicants exceed the number or locations of available conditional use permits; and WHEREAS, the selection criteria established in this resolution ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to licensing from the State Bureau of Cannabis Control; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds 72500,00707\30239905,1 DRAFT 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 that the following regulations to establish selection and prioritization criteria for commercial cannabis businesses are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of the City of Palm Desert. SECTION 2. Adoption of selection criteria for review of commercial cannabis businesses through the conditional use permit process as identified in Exhibit "A" attached to this Resolution implements Ordinance No. 1329. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 26T" day of October, 2017, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 2 72500,00707V30238865.1 DRA1T 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 EXHIBIT "A" Selection Criteria — Commercial Cannabis Businesses: The City recognizes that Palm Desert is an attractive place for business and that any potential cannabis business needs to be thoughtfully reviewed to ensure that values and priorities of the community remain ever present. Furthermore, the City anticipates that there may be more applicants for certain commercial cannabis business conditional use permits than allowed under Ordinance 1329. Therefore, the City has enacted, through Resolution, the following selection and prioritization process for prioritizing applications for commercial cannabis businesses. I. Completeness Review All commercial cannabis businesses are required to submit a Conditional Use Permit (CUP) application, with fee, to the City's Community Development Department. Applications will be reviewed for "completeness" to ensure that applicants have submitted all the required information necessary for review of the application. Only applications received within the first week of December 2017 ("initial review and prioritization period") and deemed complete will move on for review under the City's selection criteria. After the initial review and prioritization period, additional applications will be reviewed and processed according to date the application is accepted as complete and will not be subject to the review and prioritization process. II. Selection Criteria The following selection criteria will be used by the Department of Community Development to evaluate and prioritize CUPs for commercial cannabis businesses. Selection criteria are each worth one (1) point. To obtain the point, the applicant must demonstrate compliance with each criteria listed in the section below. 1. Location and Neighborhood Compatibility a. Has the applicant secured a lease and do the CCRs permit the use? b. Is the location 1,000 feet away from schools, daycares, and youth centers? c. Are "sensitive uses" (places of worship, parks, pre-schools, drug or rehab centers) within 500 feet of the location? d. Has the applicant provided a detailed description of how the premises and exterior building areas will be managed so as to avoid nuisance, loitering, and other negative impacts on surrounding properties? e. Does the applicant identify adequate odor control measures? f. Is the operation plan prepared in accordance with Chapter 5.101? g. Is the proposed use located in an appropriate zoning designation? 2. Security Plan a. Is a detailed security plan provided that includes descriptions for effective fire prevention, suppression, HVAC and alarm systems? 3 7 2500.00707\3023 8 865.1 DRAFT 10/17/17 CITY COUNCIL RESOLUTION NO. 2017-74 b. Does the security plan identify all required elements contained in Chapter 5.101 and adequately address security for the particular site and operation? 3. Qualifications/Experience of Professionals a. Does the applicant provide a viable business plan in accordance with Chapter 5.101? b. Does the applicant provide information demonstrating successful previous business experience? c. Do the principals of the business have successful business experience? d. Do the principals of the business have business experience specific to the cannabis industry for which they are applying? 4. Building Fagade and Interior Improvements a. Does the applicant provide a detailed tenant improvement plan that identifies all interior improvements? b. Are the interior improvements attractive and in keeping with traditional retail or industry standards? c. Are the exterior facade improvements attractive, suitable for Palm Desert's image and climate, and enhance the surrounding areas? d. Does the applicant provide a detailed architectural plan for building fagade improvements? 5. Community Benefits a. Does the applicant provide an effective community outreach plan for nearby and adjacent land uses? b. Does the applicant describe credible benefits to the overall community, local economy, and any community or non-profit contributions or affiliations? c. Does the applicant provide any additional community benefits described in either their business plan or other documentation submitted as part of the CUP? III. Lottery Applications for retail/dispensaries, cultivation, manufacturing, delivery and distribution, which receive tie scores from the selection criteria, will be entered in to a lottery based on the category of their use. The first lottery winner will be plotted on a map, along with a 1,500-foot radius, to determine if any other applications are eliminated by the required separation distance. This process will be repeated until all applications have been selected. 4 72500.00707\10238965 1 DRAFT 10/17/17 CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST. CONSIDERATION TO ADOPT A ZONING ORDINANCE AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE SECTION 25.34.120 CANNABIS USE AND REGULATIONS AND CHAPTERS 25.16 • L�ca�tu� 04p,4-,6,1-ly COMMERCIAL AND INDUSTRIAL DISTRICTS AND 25.18 DOWNTOWN DISTRICTS, AND TO ESTABLISH SECTION 5.101 COMMERCIAL CANNABIS REGULATORY PERMITS, AND CHAPTER 4 �O"• 8.38 PERSONAL USE OF CANNABIS TO ESTABLISH A COMMERCIAL AND PERSONAL CANNABIS REGULATORY STRUCTURE AND • q,���fE�r/. :: ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT SUBMITTED BY: Eric Ceja, Principal Planner APPLICANT: City of Palm Desert CASE NO.: ZOA 17-027 DATE: September 28, 2017 CONTENTS: 1. City Council Ordinance No. 1329; approving changes to the City's Municipal Code 2. Exhibit A— Section 25.34.120 Commercial Cannabis Business and Personal Cultivation 3. Exhibit B—Chapter 25.16 Commercial and Industrial Districts 4. Exhibit C—Chapter 25.18 Downtown District Development Standards 5. Exhibit D—Chapter 5.101 Commercial Cannabis Regulatory Permits 6. Exhibit E— Chapter 8.38 Personal Use of Cannabis Recommendation Waive further reading and pass Ordinance No. 1329 to second reading; amending Chapters 25.34.120 Commercial Cannabis Business and Personal Cultivation, 25.16 Commercial and Industrial Districts, and 25.18 Downtown District Development Standards to allow for commercial cannabis businesses subject to approval of a Conditional Use Permit, and establish Chapter 5.101 Commercial Cannabis Regulatory Permits and Chapter 8.38 Personal Use of Cannabis to establish a regulatory structure to implement a cannabis policy in the City of Palm Desert. Staff Report ZOA 17-027 Cannabis Page 2 of 2 September 28, 2017 Background The City Council considered amendments to the Palm Desert Municipal Code (PDMC) to allow for commercial cannabis businesses and personal cannabis use at their meeting of August 24, 2017. At that meeting, the City Council directed staff to establish a merit-based system for issuing conditional use permits and to limit the total number of permits available for retail cannabis businesses. The ordinance was continued to the City Council meeting of September 7, 2017, and subsequently continued to the City Council meeting of September 28, 2017, to allow staff additional time to research City Council's direction. Discussion Staff has divided the initial proposed ordinance to various sections of the PDMC to better distinguish between the City's commercial permitting and regulatory structures (Chapter 5 vs. Chapter 25). Although divided, the substance of the original ordinance remains unchanged with the exception of the total number of permits available for retail cannabis operations. After consideration, based on community and City Council feedback, staff is proposing to limit the total permits available for retail cannabis businesses to six (6) through calendar year 2018. After 2018, staff and the City Council will review the impacts of commercial cannabis operations in the City and evaluate if the total number of permits should remain, be contracted, or be expanded. In addition, as a means to avoid oversaturating any particular street no more than three (3) permits will be issued for any one street. In addition, staff is preparing a detailed guideline for a merit-based review of applications for all commercial cannabis operations. These guidelines will be in place by the end of October 2017 to allow potential applicants sufficient time to tailor their proposals. Submitted By: Eric Ceja, Princip I lanner Department Head: 1_9L Ryan Stendell, Director of Community Development Approval: Lauri Aylaian, City Manager ORDINANCE NO. 1329 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE CHAPTERS 25.34.120, 25.16 AND 25.18 TO ALLOW COMMERCIAL CANNABIS OPERATIONS IN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ESTABLISH CHAPTERS 5.101 COMMERCIAL CANNABIS REGULATORY PERMITS AND 8.38 PERSONAL USE OF CANNABIS CASE NO. ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised of industry representatives, community members, and City staff, to review a potential cannabis ordinance and to make recommendations for changes to the City's Municipal Code to allow and regulate cannabis businesses; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 1s' day of August 2017, hold a duly noticed public hearing to consider changes to the City's Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional Use Permit and certain regulations and adopted a resolution recommending approval of the changes to the municipal code to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 24th day of August, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code of the City of Palm Desert, and continued the request until September 7th, 2017; and subsequently continued the request until September 28'h, 2017, to allow additional time to separate the proposed ordinance changes and to distinguish between personal and commercial cannabis use; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 28th day of September, consider the proposed changes to the Palm Desert Municipal Code to establish land use and business regulations for personal and commercial cannabis use and operations; and WHEREAS, the requirements established in the ordinance ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to review and approval of a Conditional Use Permit by the Planning Commission; and ORDINANCE NO. 1329 WHEREAS, the requirements established in this ordinance ensure that cannabis businesses operate in accordance with State Law and requires that all commercial cannabis operations obtain licensing from the State Bureau of Cannabis Control; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the amendments to Municipal Code Chapters 25.34.120, 25.16, 25.18, and establishing Chapters 5.101 and 8.38, are consistent with the General Plan and applicable state law; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said request: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California as follows.- SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2 Adoption to rescind and replace Chapter 25.34.120 "Medicinal Cannabis Uses" with Chapter 25 34 120 "Cannabis Use and Regulations" of the City's Zoning Ordinance as identified in Exhibit "A" attached to this Ordinance. SECTION 3 Adoption of amendments to Chapter 25.16 "Commercial and Industrial Districts" of the City's Zoning Ordinance as identified in Exhibit "B" attached to this Ordinance. SECTION 4 Adoption of amendments to Chapter 25.02 "Downtown Districts Development Standards" of the City's Zoning Ordinance as identified in Exhibit "C" attached to this Ordinance. SECTION 5 Adoption to establish Chapter 5.101 "Commercial Cannabis Regulatory Permits" of the City's Municipal Code as identified in Exhibit "D" attached to this Ordinance. SECTION 6 Adoption to establish Chapter 8.38 "Personal Use of Cannabis" of the City's Municipal Code as identified in Exhibit "E" attached to this Ordinance. SECTION 7. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. 2 ORDINANCE NO. 1329 SECTION 8. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. At their meeting on August 1, 2017, the Planning Commission adopted a Notice of Exemption under the CEQA guidelines. SECTION 9. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 28T" day of September, 2017, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 3 ORDINANCE NO.: 1329 Exhibit "A" PDMC SECTION: 25.34.120— Commercial Cannabis Business and Personal Cultivation A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing, distribution, delivery, retail sale and personal cultivation, of medicinal cannabis and non-medicinal adult-use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a conditional use permit under this chapter. "Cannabis" means all parts of the plant 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 cannabis. "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 division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. ORDINANCE NO.: 1329 "Commercial cannabis business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Daycare center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed by the City and/or State of California. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the California Business and Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Owner„ means any of the following: (1) a person with an aggregate ownership interest of 20 percent (20%) or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. "Permittee" means any person granted a conditional use permit under this chapter. "Person" means any 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 the plural as well as the singular. "Private residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. ORDINANCE NO.: 1329 "Retail cannabis business" or"retailer" means a business that sells and/or delivers cannabis or cannabis products to customers. "Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing laboratory" means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. C. Conditional Use Permit Required. 1. The City may authorize a total of six (6) conditional use permits for retail cannabis businesses to operate in the City of Palm Desert. Conditional use permits for all other commercial cannabis businesses shall be issued in accordance with the zoning and separation requirements established in this ordinance. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit, regulatory permit as required under Chapter 5.101, and a State license for each commercial cannabis business use authorized under the conditional use permit. Unless otherwise stated in this Section, the provisions found in Section 25.72.050 Conditional Use Permit shall apply. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a State license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in State license type, business owner, or operation will require an amendment to the approved conditional use permit. 4. A cannabis delivery service business with a physical address outside the City is not required to obtain a conditional use permit under this chapter, but is required to obtain a City business license. 5. This Section does not apply to cannabis possession or use, as allowed by State law. Regulations regarding personal cultivation can be found in Chapter 8.38. ORDINANCE NO.: 1329 D. Permitted Locations and Standards. 1. Commercial cannabis businesses may operate in the City's commercial, industrial, office, and downtown zoning districts as identified in Section 25.16.030 "Allowed Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit Requirements" of the Palm Desert Municipal Code, with the exception of the City's Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory permit, and State license. a. Retailers are conditionally permitted in the Planned Commercial ("PC") -1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No more than six (6) conditional use permits will be issued for retail cannabis businesses. No more than three (3) retail cannabis businesses may locate on any single street. b. Testing laboratories are conditionally permitted in the Office Professional (OP) District and Service Industrial (SI) District. C. Commercial cultivation businesses are conditionally permitted in the SI District. d. Delivery-only businesses are conditionally permitted in the SI District. e. Distribution businesses are conditionally permitted in the SI District. f. Manufacture businesses are conditionally permitted in the SI District. 2. Commercial cannabis businesses shall conform to the following separation requirements: a. No conditional use permit shall be issued to a cannabis retailer that is located within 1,500 feet of another approved commercial cannabis business. No more than three (3) cannabis retailers will be permitted to operate on a single street. b. A commercial cannabis business whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City's Service Industrial zoning district only, shall be separated by 1,500 feet from another approved commercial cannabis business. C. A commercial cannabis business whose main business function is to operate as a testing laboratory is subject to a separation requirement of 500 feet from another approved commercial cannabis business and is exempt from the 1,500 foot separation requirement listed in subsections a. and b., above. d. No conditional use permit will be issued for commercial cannabis business located within , 0 feet of a school providing instruction in kindergarten or too ORDINANCE NO.: 1329 any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued. e. With the exception of commercial cannabis businesses whose business is located within a mixed-use building or whose primary business function is as a testing laboratory, no conditional use permits shall be issued for commercial and industrial properties abutting public parks or private residence. f. All separation requirements will be measured from the outer extents of the commercial cannabis businesses lease space to the outer extents of another commercial cannabis businesses lease space, or to the property line of a school, daycare center and youth center. 3. Conditional Use Permit Submittal Requirements — In addition to the requirements listed in the conditional use permit, all commercial cannabis business applicants shall submit the following information: a. Exterior Fagade. Renderings of the business facade shall be provided and reviewed as part of the Conditional Use Permit. Building facade plans shall include renderings of the exterior building elevations for all side of the building. All building facades shall be tastefully done and in keeping with the high architectural quality and standards of the City of Palm Desert. Because State Law limits certain advertising, the business facade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. b. Energy and Water Assessments. Commercial cannabis businesses shall supply energy and water assessments for review as part of the conditional use permit process. These assessments shall estimate the total amount of annual electrical and water use required to operate the commercial cannabis business. Review of the assessment may require the applicant to supplement electrical and water use at the site to minimize adverse environmental impacts. E. Grounds for Permit Denial, Suspension, and Revocation Any conditional use permit issued pursuant to the provisions of this section may be denied, suspended, or revoked by the Planning Commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee: 1. Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant; 2. Has failed to maintain a valid State license; 3. Has failed to comply with any applicable provision of the Palm Desert Municipal Code, including but not limited to this chapter, the City's building, zoning, and health and public safety regulations; ORDINANCE NO.: 1329 4. Has failed to comply with any condition imposed on the conditional use permit; or 5. Has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. F. Personal Cultivation City residents are permitted to cultivate cannabis on private residential property for personal use and in accordance with MAUCRSA, subject to the following standards: 1. Outdoor Cultivation a. Cultivation for personal use is only permitted on private residential property developed with at least one residential dwelling unit. No more than six (6) plants are permitted to be cultivated at a private residence. Property owners retain the ability to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site. b. Outdoor cultivation is limited to rear and side yard areas and only if screened by a solid block wall no less than six (6) feet in height. C. Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method. d. Outdoor cultivation within 600 feet of a school, daycare center, or youth center is prohibited. 2. Indoor Cultivation a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the City's Building and Safety Department. b. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. G. Application Fee and Reimbursement Agreement. At the time an applicant submits an application under this Section, the applicant shall also supply an application fee in an amount to be determined by resolution by the city council, an executed reimbursement agreement on a form provided by the city to fully reimburse the City for all costs, expenses, and fees, including but not limited to attorney fees and consultant fees, incurred by the City related to the commercial cannabis business, and a deposit in an amount as provided for in the reimbursement agreement terms. ORDINANCE NO.: 1329 H. Prohibited Operations. Any commercial cannabis business that does not have (i) an approved conditional use permit, (ii) a regulatory permit required under this code, and (iii) a State License is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions. I. Violations and Penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation, if applicable. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. ORDINANCE NO.:1329 Exhibit B Chapter 25.16 — Commercial and Industrial Districts Sections in This Chapter 25.16.010 Purpose.................................................................................................16-1 25.16.020 Characteristics of the Commercial and Industrial Districts ....................16-1 25.16.030 Allowed Land Uses and Permit Requirements......................................16-2 25.16.040 Specific Use Standards.........................................................................16-3 25.16.050 Development Standards........................................................................16-6 25.16.010 Purpose The purpose of this chapter is to establish commercial and industrial zoning districts in the City, along with allowed use and development standards applicable to those districts. These districts are consistent with and implement the City's General plan commercial and industrial district and center land use categories as indicated in Table 25.04-1 (Zoning Districts). 25.16.020 Characteristics of the Commercial and Industrial Districts The following descriptions of each district identify the characteristic uses, intensity of uses, and intended level of development for that district. A. Office Professional (OP). This district is intended for various levels of intensities for business, office, administrative, research and development, and/or professional land uses. This district is characterized by urban streetscapes with formal tree arrangements and larger block sizes. B. Planned Commercial (PC). The PC districts provide flexibility for commercial and mixed-use development. Generally, these districts are characterized as coordinated projects that integrate compatible commercial and residential mixed-uses. PC districts balance the need for automobile parking and pedestrian connections that are organized around walkable streetscapes and other pedestrian amenities. PC districts are further refined based on property size, proximity to residential uses, and as described below: 1. Specialty Commercial Center (PC-1). The specialty commercial center provides for small-scale commercial development that primarily serves surrounding neighborhoods and other immediate land uses. This district is characterized as being located in close proximity to residential development and, as such, provides high levels of convenient pedestrian access. This district also promotes the development of mixed-use (10.0 — 15.0 du/ac) as a transition between residential uses and other development types. 2. District Commercial Center (PC-2). The district commercial center provides convenient shopping opportunities outside of the downtown core area. This PC district provides large-format retail areas for the broader community and provides flexibility for the integration of mixed-use (10.0 — 15.0 du/ac) on upper floors of commercial buildings. The center is also characterized by traditional parking lots 16-1 Page Chapter 25. 16 Commercial and Industrial Districts with formal tree arrangements and spacing and sufficient space for pedestrian areas and open space. 3. Regional Commercial Center (PC-3). The regional commercial center provides a unified area for commercial uses which offer a wide range of goods and services, including comparison and convenience shopping, entertainment, cultural, and recreational uses. The district provides for large-scale, large-format, commercial development that serves the broader region and is generally located around major intersections and properties in proximity to freeway overpasses. Although this district is predominately commercial, mixed-use (10.0 — 15.0 du/ac) is allowed and should be integrated into developments on the upper floor. 4. Resort Commercial Center (PC-4). The resort commercial center allows for the development of a range of entertainment, hospitality, restaurants, and recreational facilities with related commercial uses to serve visitors to the City. The district is characterized by multi-story development that provides recreation and entertainment amenities in accordance with its urban/natural setting, and provides flexibility to integrate mixed-use (10.0 du/ac). C. Service Industrial (SI). This district allows for the development of traditional business parks that allow for manufacture, distribution, research and development, and service of products intended for use within Palm Desert and surrounding communities. The district is characterized as having a more urban setting with buildings located near roadways, shared and connected parking, and streetscapes with formal street tree arrangements. 25.16.030 Allowed Land Uses and Permit Requirements Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed uses and corresponding permit requirements for commercial and industrial districts and all other provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions). The "Special Use Provisions" column in the table identifies the specific chapter or section where additional regulations for the specific use type are located within this ordinance. Use regulations in the table are shown with representative symbols by use classification listing: "P" symbolizes uses permitted by right, "A" symbolizes uses that require approval of an administrative use permit, "C" symbolizes uses that require approval of a conditional use permit, and "N" symbolizes uses that are not permitted. Uses that are not listed are not permitted. However, the Commission may make a use determination as outlined in Section 25.72.020 (Use Determinations). Chapter 25. 16 Commercial and Industrial Districts 16-2/Page ORDINANCE NO.:1329 Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercial/Industrial District (P=Permitted;A--Administrative Use Special Use Permit;C=Conditional Use Permit; Provisions N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.B Dwelling,duplex z C C C C C C 25.16.040.B Dwelling,multifamily _ C C C C C C 25.16.040.E Dwelling,single-family C C C N C C 25.16.040.E Group home C C N N C C 25.16.040.E Single-room occupancies N N N N N C Homeless Shelter N N N N N P Recreation,Resource Preservation,Open Space,and Public Assembly Uses Amusement facility,indoors N N C C C N Amusement facility,outdoors N N N C C N Community facility N N N N N P Day care center N C C C C N Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility,outdoor N N N P P N Institution,educational C C C N N C Institution,general C N C N N C Institution, religious C N C N N C Open space(developed or natural) N P P N P N Recreation facility,commercial N N P P P N Recreation facility,private N N N P P N Theater/auditorium N N P P N I N Utility,Transportation,Public Facility,and Communication Uses Commercial communication tower C C C C C C 25.16.040.0 Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility(utility or service) N N N N N P Utility facility N N C N N P 16-31Page Chapter 25. 16 Commercial and Industrial Districts Retail,Service,and Office Uses Adult entertainment N N N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P CannaF is Hetad N C G t_. G N ?34,120 Cannabis Testing Facilities C N N N tV C 25,34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P I P P N N Grocery store N P P P N N 25.16.040.F Health club,gyms or studios N A P P P C Hotel N A A A P N Liquor store N P P P N N Liquor,beverage and food items shop N P P P P N Medical,clinic P N P P N N Medical, office P P P P N N Medical, hospital _ N N N N N C Medical, laboratory P N N N N P Medical office,accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office,professional p N p p p p v!— Office, local government P N N N N P Office, travel agency P P P P P N Outdoor sales N N A A A A Personal services N P P P P N Restaurant A C C C P C 25.16.040.E!H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N Time-share project N N N C C N Automobile and Vehicle Uses Chapter 25 . 16 Commercial and Industrial Districts 16-4 Page ORDINANCE NO.:1329 Automotive rental agency N N N N P P Automotive gasoline station N I N C C N C 25.34-090 Automotive service facility N N C C N P 25.34.090 Automotive sales new and used(Outdoor/Indoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility N N N N N P 25.16.040.1 Industrial,Manufacturing,and Processing Uses Cannabis Cultivation N N N N N C 25.34.120 I Cannabis Delivery N N nt N N C 25,34.120 Cannabis Dist11l)L&U;I N N ti N N C 2 �j Cannabis Manufactunrn N N N N N C 34.120 I Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N N N N P Temporary Uses See Section 25.34.080 1 The establishment may be permitted with an Administrative Use Permit but may be elevated to a Conditional Use Permit at the discretion of the ZA based on:parking, traffic,or other impacts. 25.16.040 Specific Use Standards The following provisions apply as indicated to the uses listed in Table 25.16-1 (Use Matrix for Commercial and Industrial Districts): A. Caretaker Housing. Permitted only when incidental to and on the same site as a permitted or conditional use. B. Residential (mixed use). Residential uses may be established and maintained to be compatible with the permitted or the approved conditional uses in the vicinity. C. Commercial Communication Tower. All communication towers and antennas shall satisfy the requirements of Section 25.34.130 (Communication Tower and Antenna Regulations). 16-510age Chapter 25. 16 Commercial and Industrial Districts D. Adult Entertainment. All uses defined as adult entertainment are required to meet the provisions established by Section 25.34.110 (Adult Entertainment Establishments). E. Commercial (ancillary). Applicable only to office and industrial complexes that occupy a minimum of two acres. Restaurant uses shall not exceed 10 percent of the gross leasable floor area and the total ancillary commercial uses, including restaurants, shall not exceed 25 percent of the gross leasable floor area of the complex. A Conditional Use Permit or Administrative Use Permit is required to review land-use compatibility and to ensure that adequate parking exists to serve the commercial use. F. Grocery Stores. Limited to a maximum building size of 10,000 square feet in PC-1, 30,000 square feet in PC-2, and 60,000 square feet in PC-3. G. Medical Offices, accessory. Permitted only when ancillary to and in conjunction with the operation of a hotel. H. Restaurants. Drive-through and drive-in facilities permitted by a conditional use permit as follows: 1. Permitted locations. i. Within Freeway Commercial Overlay District ii. On the following streets and as indicated in Figure 25.10-2: Monterey Avenue and Portola Avenue from the northern city boundary to the north side of Gerald Ford Drive. 2. Development standards. i. Drive-through lanes and window facilities shall be designed in a manner that they are screened and/or not visible from surrounding public streets. ii. Drive-through vehicle queue must be permanently screened and/or not visible from surrounding public streets. I. Vehicle Service and Storage Facility. The storage facility must be completely screened. 25.16.050 Development Standards The development standards included in Table 25.16-2 (Commercial and Industrial District Development Standards) are applicable to commercial and industrial districts. These standards, along with other development standards (e.g., landscaping requirements, signs, and parking standards) located in the zoning ordinance, are intended to assist property owners and project designers in understanding the City's minimum requirements and expectations for high-quality development. A. Special setback requirements. In addition to the setback requirements in Table 25.16- 2 (Commercial and Industrial District Development Standards) the following special setback provisions apply: 1. On interior lots in the PC zone districts, setbacks shall be the lesser of the setback requirement listed in Table 25,16-2 (Commercial and Industrial District Development Standards). For exterior lots or projects perimeter adjacent to public streets the setback standards below shall apply. Said setbacks shall be measured from the property line. 2. Building setbacks from planned street lines: Chapter 25. 16 Commercial and Industrial Districts 16-61Page ORDINANCE NO.:1329 Table 25.16-2: Setbacks from Planned Street Lines Street Type Setback Distance Freeway 50 feet Major 32 feet Arterial 32 feet Collector 25 feet Local 25 feet 3. Where commercial districts abut a residential district, a fence or wall 6 feet in height shall be located adjoining the property line except adjoining a required front yard. All commercial district property lines adjoining a residential district shall be landscaped with plant materials for an area 10 feet in depth. 4. All nonpaved areas shall be landscaped and treated or maintained to eliminate dust. B. Exceptions: Development standards within the PC districts may be modified through the precise plan process as specified in Section 25.72.030Special standards within the Service Industrial (SI) district. Sound emanating from industrial properties shall be muffled so as not to become objectionable due to intermittence, beat frequency, or shrillness. The measurements of sound shall be measured at the lot lines and shall be measured to decibels with a sound level meter and associated octave band filter, manufactured according to standards prescribed by the American Standards Association. Maximum permissible sound pressure levels shall comply with the limits at table 25.16-2 and the following standards: Table 25.16-3: Maximum Permitted Decibels Octave Band in Cycles- Adjacent Residential District Lot Line of Use in the Sl Second(decibels) Boundaries(decibels) Zone(decibels) 0-75 12 79 76-150 5q 74 151-300 52 66 301-600 46 59 601-1200 42 53 1201-2400 39 47 2401-4800 34 41 Above 4800 32 39 1. The maximum sound pressure level in decibels shall be 0.002 dynes per square centimeter. 16-7/Page Chapter 25. 16 Commercial and Industrial Districts 2. Toxic gases or matter shall not be emitted which can cause any damage to health, animals, or vegetation, or other forms of property, or which can cause any excessive soiling beyond the lot lines of the use. 3. Vibration from any machine, operation, or process which can cause a displacement of .003 of 1 inch as measured at the lot lines of the use shall be prohibited. Shock absorbers or similar mounting shall be allowed which will reduce vibration below .003 of 1 inch as measured at the lot lines. 4. Glare and heat from any source shall not be produced beyond the lot lines of the use. 5. Storage of refuse, trash, rubbish, or other waste material outside a permanent building shall be kept in enclosed containers in areas other than the front and side yards. 6. Lighting, including spotlights, floodlights, electrical reflectors, and other means of illumination for signs, structures, landscaping, parking areas, loading and unloading areas, and the like shall be shielded, focused, directed, and arranged as to prevent glare or direct illumination on streets or adjoining property. 7. Unless specific additional uses are permitted by the certificate of occupancy, the use of radioactive materials within the SI district shall be limited to measuring, gauging and calibration devices, as tracer elements, in x-ray and like apparatus, and in connection with the processing and preservation of foods. In no event shall radioactivity, when measured at each lot line, be in excess of 2.7 x 10-11 micro curies per milliliter of air at any moment of time. 8. Electrical and electronic devices and equipment shall be suitably wired, shielded, and controlled so that in operation they shall not, beyond the lot lines, emit any electrical impulses or waves which will adversely affect the operation and control of any other electrical or electronic devices and equipment. (Ord. 96 § 1, 1975, Exhibit A § 25.20-7.16) C. Special standards within the Office Professional (OP) district. 1. When adjacent to single-story residential, the rear and exterior side yard setbacks shall be increased by 6.43 feet for each foot of building height above 18 feet up to 25 feet tall. See table below: Table 25.16-4: Additional Setback in OP District Height Setback Distance 19 feet 26.43 feet 20 feet 32.86 feet 21 feet 39.29 feet 22 feet 45.72 feet 23 feet 52.15 feet Chapter 25. 16 Commercial and Industrial Districts 16-81Page ORDINANCE NO.:1329 24 feet 58.58 feet 25 feet 65 feet 2. Second-story Windows: Second-story windows are allowed to face adjacent single-story residential zones with sufficient screening; either with landscaping or another method as approved through the precise plan process. 16-91 Chapter 25. 16 Commercial and Industrial Districts Table 25.16-4: Commercial and Industrial District Development Standards Commercial/Industrial District OP PC-1' PC-2' PC-3' PC-4' SI Lot Dimensions Lot size, min 15,000 sf 3 ac 5 ac 30 ac 4 ac 20,000 sf Lot size, max None 10 ac 20 ac None None None Lot width, min 70' None None None No min 100, Lot depth, min 140' None None None No min 100' Setbacks2 Front yard, min 12 a ing, 15 _ _ _ 30' 20' Side yard, min (interior/exterior) 0'/20'3A7 0'/20'3.4 0'/20'3'4 - 15' 0'/10,5 Street side yard, min 12 a in, 15 _ _ _ - 10, vg Rear yard, min 0720'3'4 0'/20'3'4 0'/20'3'4 - 20' j 0725'5 Coverage Floor Area Ratio 0.75 0.5 1.0 1.0 0.10 0.75 Residential Density Range 10.0- 10.0- 10.0- (mixed-use) 10.0 15.0 15.0 15.0 10.0 - Building Measurements Height, max(single-use) 40', 3 stories 35', 2 35', 2 35', 2 55', 4 40', 3 stories stories stories stories stories Height, max(mixed-use) 40 40 40 40 55 No.of Stories (mixed-use) 3 3 3 3 4 - Building size, maze - 10,000 sf 30,000 sf - - - - Chapter 25. 16 Commercial and Industrial Districts 16-10 Aage ORDINANCE NO.:1329 Commercial/Industrial District OP PC-1' PC-2' PC-3' PC-4' SI Landscaping Required landscaping, min percentage of lot area 15% 15% 15% 20% 20%9 — — Depth of landscaping in street 10' 10' 20' 30' 10' setback area, min — — Notes: 1. Development standards may be modified through the precise plan process as specified in Section 25.72.030_ 2. See Section 25.16.050 A(Special Setback Requirements). 3. When an OP. PC-1 or PC-2 zone is adjacent to a commercially or industrially zoned property. the setback is zero. 4. When an PC-1,or PC-2 zone is adjacent to a residentially zoned property, the minimum required setback for a commercial structure or a joint use commercial and residential structure is equal to the building's height. 5. When an Sl zone is adjacent to or across the street from residentially zoned property. the minimum side setback is 10 feet and the minimum rear setback is 25 feet. 6. The side yard setback may be 0 feet where the main building structure on the same lot line of the abutting parcel is set back at 0 feet and both parcels are developed at the same time. 7. When adjacent to single-story residential,see Section 25.16.050 E(Additional Setback in OP District) 8. This standard refers to the maximum area for any single commercial enterprise. 9. For hotels.a minimum of 25 percent of the site area must be usable landscaped open space and outdoor living and recreation area with an adequate irrigation system. 16-11fP=, Chapter 25 . 16 Corn mercial and Industrial Districts ORDINANCE NO.: 1329 Exhibit C -25.18.040 Land Use and Permit Requirements Amend Table 25.18-1. "Use Matrix for Downtown Districts"to add the following Land Use _ Zone Special Use Provisions D D-O I DE DE-O Retail, Service, and Office Uses Cannabis Retail C N I C I N 125.34.120 Cannabis Testing Facilities C N N N 25.34.120 ORDINANCE NO.: 1329 Exhibit "D" PDMC SECTION 5.101 —Commercial Cannabis Business Regulatory Permits A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing, distribution, delivery, and retail sale of medicinal cannabis and non- medicinal adult-use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a regulatory permit under this chapter. "Cannabis" means all parts of the plant 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 cannabis. "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 division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. ORDINANCE NO.: 1329 "City" means the City of Palm Desert. "City manager" means city manager or designee. "Commercial cannabis business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed by the City and/or State of California. "Fully enclosed and secured structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers and does not include cannabis cultivation or manufacturing on the premises. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the California Business and Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent (20%) or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other ORDINANCE NO.: 1329 entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. "Permittee" means any person granted a regulatory permit under this chapter. "Person" means any 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 the plural as well as the singular. "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers. "Sell," sale," and "to sell' include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing laboratory" means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Regulatory Permit Required. 1. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit as required under Section 25.34.120, regulatory permit, and a State license for each commercial cannabis business use authorized under the conditional use permit. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a State license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in State license type, business owner, or operation will require an amendment to the approved regulatory permit. 4. This chapter does not apply to cannabis possession or use, as allowed by State law. Regulations on personal cultivation can be found in Chapter 8.38. ORDINANCE NO.: 1329 5. A cannabis delivery service business with a physical address outside the City is not required to obtain a regulatory permit under this chapter, but is required to obtain a City business license. D. Regulatory Permit Application Requirements. An application for a regulatory permit shall include, but shall not be limited to, the following information: 1. The name, address, and telephone number of the applicant. 2. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement operating agreement, and fictitious business name statement. 3. The name, address, telephone number, title, and function of each of the interested parties described in subsection N., below. 4. A legible copy of each applicant's photo identification, such as a state driver's license, a passport issued by the United States, or a permanent resident card. 5. A list of the license or permit types (including license or permit numbers) held by the applicant that involve the operation of a commercial cannabis business, including the date the license or permit was issued and the jurisdiction or State license authority that issued the license or permit. 6. Whether the applicant has been denied a license or permit by the City, any other jurisdiction, and/or the State that involves the operation of a commercial cannabis business. The applicant shall provide a description of the license or permit applied for, the name of the jurisdiction or State license authority that reviewed the license or permit application, and the date of denial. 7. The proposed commercial cannabis business's physical address, telephone number, website address, and e-mail address. B. Contact information for the applicant's designated primary contact person including the name, title, address, phone number, and e-mail address of the individual. 9. A list of every fictitious business name the applicant is operating under including the address where the business is located. 10. Financial information including the following: a. A list of funds belonging to the commercial cannabis business held in savings, checking, or other accounts maintained by a financial institution. The ORDINANCE NO.: 1329 applicant shall provide for each account, the financial institution's name, the financial institution's address, account type, account number, and the amount of money in the account. b. A list of loans made to the commercial cannabis business . For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender. C. A list of investments made into the commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor. d. A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis business. For each gift the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift. 11. A list of each applicant's misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of nolo contendre. 12. A complete and detailed diagram of the proposed premises showing the boundaries of the property and the proposed premises to be permitted, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, storage areas and exterior lighting. The diagram must show the areas in which all commercial cannabis business will take place, including but not limited to, limited-access areas. 13. A security plan, as a separate document, outlining the proposed security arrangements to deter and prevent unauthorized entrance into limited access areas and theft of cannabis, in accordance with minimum security measures required by state law. The security plan shall be reviewed by the Palm Desert Police Department and the city manager and shall be exempt from disclosure as a public record pursuant to Government Code Section 6255(a). 14. A comprehensive business operations plan that includes the following: a. Business plan. A plan describing how the commercial cannabis business will operate in accordance with this code, state law, and other applicable regulations. The plan shall include operational, banking, and personnel procedures to ensure adequate business knowledge, modeling and support. ORDINANCE NO.: 1329 b. Community relations plan. A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. C. Neighborhood responsibility plan. A plan addressing any adverse impacts of the proposed commercial cannabis business on the surrounding area. d. Odor control plan. A plan identifying odor control methods, including, but not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. e. Insurance. The applicant's certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the commercial cannabis business. f. Budget. A copy of the applicant's most recent annual budget for operations. 15. The name and address of the owner and lessor of the real property upon which the commercial cannabis business is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a commercial cannabis business will be operated on his or her property. 16. Authorization for the city manager to seek verification of the information contained within the application. 17. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct. 18. A full and complete copy of the applicant's most current application submitted to and approved by the applicable State licensing authority. 19. Any such additional and further information as is deemed necessary by the city manager to administer this chapter. E. Background Check. The City will provide each applicant and interested parties, as described in Section N., below, with a `request for live scan service' form, which must be taken to a live scan operator for fingerprinting. Each applicant must submit their fingerprint images to the Palm Desert Police Department, California Department of Justice, and the Federal Bureau of Investigation for fingerprint-based criminal history records review and reporting to the City. ORDINANCE NO.: 1329 F. Additional Terms and Conditions. Based on the information set forth in the application, the city manager may impose reasonable terms and conditions on the proposed operations of the commercial cannabis business in addition to those specified in this chapter. G. Regulatory Permit Denial. The city manager may deny an application for a regulatory permit or renewal of a regulatory permit upon making any of the following findings: 1. The applicant or the premises for which a regulatory permit is applied does not qualify for a permit under this chapter. 2. The applicant fails to comply with the provisions of this chapter. 3. The applicant has failed to provide information required by the city manager. 4. The applicant or permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the city manager determines that the applicant or permittee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the city manager shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or permittee to be issued a permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the city manager shall include, but not be limited to, the following: 5. A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance. 6. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. 8. A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the California Penal Code. 9. A felony conviction involving fraud, deceit, or embezzlement. 10. The applicant, or any of its officers, directors, or owners, has been sanctioned by a State licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or has had a State license revoked in the three years immediately preceding the date the application is filed with the city manager. 11. The commercial cannabis business is not properly organized or operating in strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana Program Act ("MMP"), Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"), and any other applicable law, rules and regulations. ORDINANCE NO.: 1329 H. Regulatory Permit Term. A regulatory permit is valid for one (1) year from the date that the permit is issued, unless suspended or revoked sooner. I. Regulatory Permit Renewal Process. 1. To renew a regulatory permit, a completed permit renewal form and renewal permit fee shall be received by the city manager from the permittee no earlier than sixty (60) calendar days before the expiration of the permit and no later than the last business day before the expiration of the permit. 2. In the event the regulatory permit is not renewed prior to the expiration date, the permittee must cease all commercial cannabis business. J. Regulatory Permit Surrender. Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the city manager. The city manager may seize the permit of a permittee who fails to comply with the surrender provisions of this section and may proceed to revoke the permit. If a permittee wishes to close a commercial cannabis business for repair or refurbishment for a period of longer than sixty (60) calendar days, the permittee shall notify the city manager of same in writing. K. Regulatory Permit Suspension and Revocation. The city manager may suspend, modify, or revoke a regulatory permit issued pursuant to the provisions of this Chapter for any of the following reasons: 1. One or more of the circumstances upon which a regulatory permit could be denied exists or has occurred; 2. One or more conditions of the regulatory permit has been violated; or 3. The permittee, its owners, officers, directors, partners, agents, or other persons vested with the authority to manage or direct the affairs of the business have violated any provision of this chapter or State law. L. Appeals. Any decision regarding the denial, suspension, or revocation of a regulatory permit may be appealed to the city council. All appeals shall be in writing and filed with the city clerk within ten calendar days of any decision or action that is the subject of the appeal. After receiving the written appeal, the city clerk shall schedule a hearing before the city council. The city council may refer the matter to a hearing officer. The city council may decide the matter based on the recommendations and findings of the hearing officer, if it so chooses. The decision of the city council or hearing officer shall be final. ORDINANCE NO.: 1329 M. Operational Requirements. All commercial cannabis businesses are subject to the following operational requirements: 1. Commercial cannabis businesses shall maintain compliance with the security plan, business plan, community relations plan, neighborhood responsibility plan, odor control plan, and insurance requirements submitted with their application, unless modifications are accepted in writing by the city manager. 2. Commercial cultivation, possession, manufacture, processing, storing, laboratory testing, packaging, and labeling, shall be conducted only within a fully enclosed and secured structure that is not accessible to minors. 3. Commercial cannabis businesses shall not create nuisances such a dust, glare, heat, noise, smoke, odor, and shall not be used to store hazardous materials, products, or wastes. 4. Commercial cannabis businesses shall utilize product and inventory tracking software and accounting software that is in-line with reasonable business practices within the industry. 5. As part of the security plan, permittees shall: a. Install and maintain security cameras that shall cover, but not be limited to covering sale, cultivation, manufacturing, processing, transportation, distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. b. Operate cameras 24 hours per day, seven days per week. C. Maintain at least 120 concurrent hours of digitally recorded documentation. d. Cure any disruption in security camera images expeditiously and in good faith. e. Install alarm systems that are operated and monitored by an independent third party security company. f. Shall lock all storage areas and give access to such storage areas only to permittee and permittee's staff. No cannabis products shall be accessible to the general public. 6. Commercial cannabis businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth center. ORDINANCE NO.: 1329 N. Interested Parties. 1. A permittee shall provide the city with names and addresses of all of the following interested parties: a. Persons with at least a 10% interest in the commercial cannabis business; b. Partners, officers, directors, and stockholders of every corporation, limited liability company, or general or limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business; C. The managers of the commercial cannabis business; and d. The staff of the commercial cannabis business. 2. The permittee shall notify the city of any change in the information above within 30 calendar days of the change. 3. All interested parties, as described in subsection 1, must submit to fingerprinting and a criminal background check by the city. 4. No person shall be an interested party, as described in subsection A of this Section, if he or she is charged with or convicted of a felony; has been charged with or convicted of a violation of California Penal Code section 186.22 (participation in a criminal street gang); or is currently on parole or probation for an offense relating to the sale or distribution of a controlled substance. "Convicted" within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted. "Charged" within the meaning of this section means (1) an indictment was issued by a grand jury, or an information, complaint, or similar pleading was issued by the United States Attorney, district attorney, city attorney, or other governmental official or agency authorized to prosecute crimes, and (2) the criminal proceedings are currently pending. O. Emergency Contact Manager. A commercial cannabis business permittee shall provide the city manager with the current name and primary and secondary telephone numbers of at least one 24-hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the commercial cannabis business. ORDINANCE NO.: 1329 P. Community Relations Manager. Each commercial cannabis business shall provide the city manager with the name, phone number, facsimile number, and e-mail address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the commercial cannabis business or refer members of the public who may have any concerns or complaints regarding the operation of the commercial cannabis business. Each commercial cannabis business shall also provide the above information to its business neighbors located within one hundred (100) feet of the commercial cannabis business as measured in a straight line without regard to intervening structures, between the front doors of each establishment. 0. Display of Regulatory Permit. The permittee shall display its current valid permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the premises. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the premises. R. Inspections and Enforcement. 1. Recordings made by security cameras at any commercial cannabis business shall be made immediately available to the city manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials. 2. The city manager shall have the right to enter all commercial cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. 3. Operation of the commercial cannabis business in non-compliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the municipal code and shall be enforced pursuant to the provisions of this code. 4. The city manager may summarily suspend or revoke a cannabis regulatory permit if any of the following, singularly or in combination, occur: a. The city manager or designee determines that the commercial cannabis business has failed to comply with this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the city manager or designee to deny the permit under subsection F., above. b. Operations cease for more than sixty (60) calendar days, including during change of ownership proceedings, unless otherwise authorized by the city manager; C. Ownership is changed without securing a regulatory permit; or ORDINANCE NO.: 1329 d. The commercial cannabis business fails to allow inspection of the records, security recordings, the activity logs, or the premises by authorized city officials. S. Liability and Indemnification. 1. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this chapter shall not become a personal liability of any public officer or employee of the City. 2. To the maximum extent permitted by law, the permittees under this chapter shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of Palm Desert, the Palm Desert City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called City) from any liability damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs (collectively called "action") against the City to attack, set aside, void or annul, any cannabis-related approvals and actions and comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys' fees. 3. Within ten (10) calendar days of the service of the pleadings upon the City of any action as specified in Subsection 2., above, the permittee shall execute a letter of agreement with the City, acceptable to the Office of the City Attorney, which memorializes the above obligations. These obligations and the letter of agreement shall survive termination, extinguishment or invalidation of the cannabis-related approval. Failure to timely execute the letter of agreement does not relieve the applicant of any of the obligations contained in this section or any other requirements or performance or operating standards that may be imposed by the City. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any regulatory permit pursuant to this chapter or the operation of any commercial cannabis business approved pursuant to this chapter. T. Compliance with State Law. All commercial cannabis businesses shall comply fully with all of the applicable restrictions and mandates set forth in state law, including without limitation the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult- Use Cannabis Regulation and Safety Act ("MAUCRSA"). ORDINANCE NO.: 1329 U. Violations and Penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. ORDINANCE NO.: 1329 Exhibit "E" PDMC Chapter: 8.38 — Personal Use of Cannabis A. Purpose and Intent It is the purpose and intent of this chapter to regulate the personal use and possession of medicinal cannabis and non-medicinal adult use cannabis within the City of Palm Desert in compliance with applicable state and local laws. B. Definitions "Cannabis" means all parts of the plant 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 cannabis. "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. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Day care center" means any child day care facility including infant centers, preschools, extended day care facilities, and school age child care centers. "Personal residence" means a house, an apartment unit, a mobile home, or other similar dwelling. "Smoke" means to inhale, exhale, burn, or carry any lighted or heated device or pipe, or any other lighted or heated marijuana or marijuana product intended for inhalation, whether natural or synthetic, in any manner or in any form. "Smoke" includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking in a place. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. I � C. Personal Use and Possession All personal use and possession of cannabis must be in compliance with the Compassionate Use Act ("Act"), the Medical Marijuana Program ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"). In addition, the restrictions listed below apply. It shall be unlawful and a public nuisance to: 1. Smoke or ingest cannabis or cannabis products in a public place, including, but not limited to streets, sidewalks, parks, or any common areas within a residential development, including but not limited to private streets and sidewalks, common parking areas, parks or other spaces maintained by an homeowners or property owners association and accessible to residence of the development. 2. Smoke cannabis or cannabis products in a location where smoking tobacco is prohibited under Chapter 8.36 Regulation and Prohibition of Smoking. 3. Possess, smoke or ingest cannabis or cannabis products in or upon the grounds of a school, day care center, or youth center; or smoke cannabis or cannabis within 1,000 feet of a school, day care center, or youth center, except in or upon grounds of private residence and then only if such smoking is not detectable by others on the grounds of any school, day care center, or youth center. 4. Smoke cannabis or use cannabis products on City property, including parks, common areas in City-owned housing developments, and other public places. D. Penalties for Violation 1. Any person who violates any provision of this chapter is deemed guilty of misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney in accordance with Chapter 1.12 of this code. 2. Any violation of this chapter is hereby declared to be a public nuisance. 3. Each incident of smoking in violation of this chapter is subject to a one-hundred-fifty- dollar fine. 4. The provisions of this section are not to be construed as exclusive remedies and, in the event of violation, the city may pursue any proceedings or remedies otherwise provided by law. 2 f ORDINANCE NO. 1329 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE AMENDMENT AMENDING PALM DESERT MUNICIPAL CODE CHAPTERS 25.34.120, 25.16 AND 25.18 TO ALLOW COMMERCIAL CANNABIS OPERATIONS IN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ESTABLISH CHAPTERS 5.101 COMMERCIAL CANNABIS REGULATORY PERMITS AND 8.38 PERSONAL USE OF CANNABIS CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised of industry representatives, community members, and City staff, to review a potential cannabis ordinance and to make recommendations for changes to the City's Municipal Code to allow and regulate cannabis businesses; and WHEREAS, the Planning Commission of the City of Palm Desert, Califomia, did on the 1s' day of August 2017, hold a duly noticed public hearing to consider changes to the City's Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional Use Permit and certain regulations and adopted a resolution recommending approval of the changes to the municipal code to the City Council; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 24th day of August, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code of the City of Palm Desert, and continued the request until September 71h, 2017; and subsequently continued the request until September 28'h, 2017, to allow additional time to separate the proposed ordinance changes and to distinguish between personal and commercial cannabis use; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 28th day of September, consider the proposed changes to the Palm Desert Municipal Code to establish land use and business regulations for personal and commercial cannabis use and operations and continued the request to their meeting of October 12, 2017, and directed staff to limit the total number of permits available for retail cannabis, to limit the total number of retail cannabis business on El Paseo, to expand the definition of testing and research facilities, to incorporate language requiring Code Covenant and Restrictions (CC&Rs) review ; and ORDINANCE NO. 1329 WHEREAS, the requirements established in the ordinance ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to review and approval of a Conditional Use Permit by the Planning Commission; and WHEREAS, the requirements established in this ordinance ensure that cannabis businesses operate in accordance with State Law and requires that all commercial cannabis operations obtain licensing from the State Bureau of Cannabis Control; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the amendments to Municipal Code Chapters 25.34.120, 25.16, 25.18, and establishing Chapters 5.101 and 8.38, are consistent with the General Plan and applicable state law; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said request: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2. Adoption to rescind and replace Chapter 25.34.120 "Medicinal Cannabis Uses" with Chapter 25.34.120 "Cannabis Use and Regulations" of the City's Zoning Ordinance as identified in Exhibit "A" attached to this Ordinance. SECTION 3. Adoption of amendments to Chapter 25.16 "Commercial and Industrial Districts" of the City's Zoning Ordinance as identified in Exhibit "B" attached to this Ordinance. SECTION 4. Adoption of amendments to Chapter 25.02 "Downtown Districts Development Standards" of the City's Zoning Ordinance as identified in Exhibit "C" attached to this Ordinance. SECTION 5. Adoption to establish Chapter 5.101 "Commercial Cannabis Regulatory Permits" of the City's Municipal Code as identified in Exhibit "D" attached to this Ordinance. SECTION 6. Adoption to establish Chapter 8,38 "Personal Use of Cannabis" of the City's Municipal Code as identified in Exhibit "E" attached to this Ordinance. SECTION 7. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof 2 ORDINANCE NO. 1329 irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 8. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. At their meeting on August 1, 2017, the Planning Commission adopted a Notice of Exemption under the CEQA guidelines. SECTION 9. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the day of , 2017, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 3 s MARIJUANA ANTI-PROHIBITION PROJECT AMERICAN HARM REDUCTION ASSOCIATION Compassion and Common Sense PO Box 739, Palm Springs CA 92263-0739 Phone ~ 760-799-2055 www.mariouananews.org - email to lanny@marijananews.org October 12,2017 To: Palm Desert City Council Subject: Issuance of License for Marijuana Dispensary In 2005 I, along with 10 members of the Marijuana Anti-Prohibition Project, appeared before the Palm Desert City Council when the Council was considering for the first time a moratorium on allowing medical marijuana collectives to operate. After hearing our presentations, the Council chose to table the moratorium for further consideration. So began the saga of marijuana distribution in Palm Desert that over the last decade has undergone a number of differing permutations from moratoriums to bans. It may have taken longer that I would like to have seen, but I am delighted that the Palm Desert City Council is now considering the licensing of marijuana businesses. In addition to complying with directions of the voters of California and Riverside County to legalize the sale of marijuana to all adults 21 and over, the issuance of licenses will allow for Palm Desert residents to access marijuana without making drives to other localities, provide a new source of tax revenue for the city and significantly reduce illegal sales by criminals. With the above foremost in mind, I am delighted to highly recommend the issuance of a license to Julie Montante operator of PS Organica in Palm Springs. I have known Julie for over six years and have always been impressed by her dedication to providing quality cannabis products to her clients at fair prices. Her store in Palm Springs is impressive not only for its line of cannabis products that are presented in well-designed and stylish layout but for the knowledgeable and compassionate service provided by the store's employees. PS Organica should also be noted for its professional appearance and operation and its adherence to and compliance with all of Palm Springs licensing and regulatory requirements. I am sure Julie will brine the same level of competency and professionalism to her store in Palm Desert. Most importantly,Julie has been and continues to be involved with the community prodding financial and other forms of assistance to a wide variety of community organizations. As an organizer in the Coachella Valley cannabis community, I have always been impressed by the help she has provided to medical marijuana patients in need of assistance and have appreciated the support she has shown to cannabis organizations working on the local level to assure safe, reliable and local access. Sincerely,, Gtiy 5w"tow Lanny Swerdlow, RN LNC 0s tZl Wd 01 130 Lie? Executive Director v:) 1213S3Q 1141Vd V1330 S.)18310 A J 13 (13 A 13O3» CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT CITY COUNCIL PUBLIC HEARING MEMORANDUM To: Honorable Mayor and Members of the City Council From: Eric Ceja, Principal Planner Date: October 12, 2017 Subject: Zoning Ordinance Amendment 17-027 Cannabis Ordinance Modification At its meeting of September 28, 2017, the City Council continued the Zoning Ordinance Amendment and directed staff to make revisions to the proposed ordinance. Staff has made the changes as directed. In addition, attached you will find the following: 1. Clean copy of the revised ordinance to be adopted. 2. Redline copy of the revised ordinance (Exhibits A, C, and D). 3. Correspondence received since the last City Council meeting. Staff is recommending that the City Council pass the ordinance amendments to a second reading in October. ERIC CEJA PRINCIPAL P A NER ��Fo (t000 RESOLUTION NO. 2017-76 STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT MEETING DATE: November 16, 2017 2017-76 REQUEST: Adopt Resolution No. establishing an appeals committee as part of the cannabis selection criteria process. Recommendation Waive further reading and adopt Resolution No. 2017-76 directing the City Manager to establish a cannabis application appeals committee to hear any appeals brought from the prioritization process of applications for commercial cannabis businesses. Strategic Plan The establishment of a cannabis application appeals committee does not achieve any specific Strategic Plan goals. Executive Summary In order to ensure a fair and objective process, it is recommended that a separate cannabis appeals committee be established to hear any applicant appeals regarding their prioritization score received during the cannabis application process. To facilitate this process it is recommended that the City Council (Council) direct the City Manager to establish and appoint a three (3) person appeals committee to hear any such appeals. Background and Analysis Ordinance No. 1329 provides that the Council establish a prioritization process for processing of CUPs and Regulatory Permits for commercial cannabis businesses. Pursuant to Ordinance No. 1329, on October 26, 2017, the Council adopted a resolution establishing selection criteria to be used for that prioritization. Because the selection criteria will be scored on a scale, staff is proposing that an appeals committee be established to hear any appeals on application scoring. As proposed, once a cannabis business application is reviewed and deemed complete, the application will be reviewed and scored against the selection criteria by a staff committee. Once final scores are provided, any applicant that wishes to challenge their score should be allowed to appeal that decision. Staff has reviewed options for the appeals committee and recommends that the Council authorize the City Manager to November 16, 2017— Staff Report Cannabis application appeals committee Page 2 of 2 establish and appoint a three (3) member appeals committee of qualified persons who did not participate in the initial scoring. Decisions of the appeals committee would be final and not subject to further review. Fiscal Impact There is no fiscal impact associated with establishing the cannabis appeals committee. Prepared by: ric Ceja, Principal Planner LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER ry ��wps— N/A be-L- Robert W. Hargreaves Ryan Stendell Janet Moore Lauri Aylaian City Attorney Dir.of Comm. Dev. Director of Finance City Manager AN,- CITY COUNCIL RESOLUTION NO. A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DIRECTING THE CITY MANAGER TO ESTABLISH AND APPOINT A THREE MEMBER CANNABIS APPLICATION APPEALS COMMITTEE AS PART OF THE PRIORITIZATION PROCESS FOR CONDITIONAL USE PERMITS AND REGULATORY PERMITS FOR COMMERCIAL CANNABIS BUSINESSES CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article VI, Section 7 of the California Constitution, the City has the police powers to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, California has adopted through ballot initiative, the Control Regulate and Tax Adult Use of Marijuana (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 12t' day of October, 2017, hold a duly noticed public hearing to consider changes to the Municipal Code of the City of Palm Desert, and adopted Ordinance 1329 establishing commercial and personal cannabis regulations and providing for the issuance of conditional use permits and regulatory permits for commercial cannabis businesses; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 2611 day of October, 2017, adopt Resolution No. 2017-74, establishing selection criteria to be used to prioritize applications for conditional use permits and regulatory permits for commercial cannabis businesses; and WHEREAS, in order to ensure a complete and fair process, the City Council desires to establish a cannabis application appeals process to be used exclusively if any cannabis applicant wishes to challenge the outcome of the scores received during the scoring criteria review; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the forgoing recitals as its findings in support of the following regulations and further finds that establishing a cannabis application appeals committee is beneficial and appropriate to ensure a fair and complete application review process for perspective cannabis operators. RESOLUTION NO. 2017- SECTION 2. Appeals Committee. The City Council hereby directs the City Manager to appoint a three member appeals committee of qualified persons not involved in the initial scoring of cannabis business applications to hear appeals from that scoring and further directs that decisions of the appeals committee be final and not subject to further review or appeal. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 16"' day of November, 2017 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT 2 ORDINANCE NO.: 1329 Exhibit "A" PDMC SECTION: 25.34.120 — Commercial Cannabis Business and Personal Cultivation A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, retail sale and personal cultivation, of medicinal cannabis and non-medicinal adult-use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult- Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a conditional use permit under this chapter. "Cannabis" means all parts of the plant 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 cannabis. "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 division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. ORDINANCE NO.: 1329 "Commercial cannabis business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing and research, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Daycare center" means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school-age child care centers. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed by the City and/or State of California. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the California Business and Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent (20%) or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. "Permittee" means any person granted a conditional use permit under this chapter. "Person" means any 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 the plural as well as the singular. "Private residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. ORDINANCE NO.: 1329 "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers. "Sell," sale," and "to sell' include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing or Research Llaboratory" means a laboratory, facility, or entity in the City that offers or performs tests or research of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. C. Conditional Use Permit Required. 1. The City may authorize a total of six (6) conditional use permits for retail cannabis businesses to operate in the City c If Palm Desert. No more than one (1) retail cannabis business may locate on El Paseo. If applications are submitted for a greater number of conditional use permits than are permitted by this section, selection among the applicants shall be made by a process, and subject to criteria, established by city council resolution. Conditional use permits for all other commercial cannabis businesses shall be issued in accordance with the zoning and separation requirements established in this ordinance. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit, regulatory permit as required under Chapter 5.101, and a State license for each commercial cannabis business use authorized under the conditional use permit. Unless otherwise stated in this Section, the provisions found in Section 25.72.050 Conditional Use Permit shall apply. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a State license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in State license type, business owner, or operation will require an amendment to the approved conditional use permit. ORDINANCE NO.: 1329 4. A cannabis delivery service business with a physical address outside the City is not required to obtain a conditional use permit under this chapter, but is required to obtain a City business license. 5. This Section does not apply to cannabis possession or use, as allowed by State law. Regulations regarding personal sultivatlen-use can be found in Chapter 8.38. D. Permitted Locations and Standards. 1. Commercial cannabis businesses may operate in the City's commercial, industrial, office, and downtown zoning districts as identified in Section 25.16.030 "Allowed Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit Requirements" of the Palm Desert Municipal Code, with the exception of the City's Downtown Core Overlay District, upon issuance of a conditional use permit, regulatory permit, and State license. a. Retailers are conditionally permitted in the Planned Commercial ("PC") -1 District, PC-2 District, PC-3 District, PC-4 District, and Downtown (D) District. No more than six (6) conditional use permits will be issued for retail cannabis businesses. No more than three (3) retail cannabis businesses may locate on any single street, and no more than one (1) retail cannabis business may locate on El Paseo \ `„,�4,y 41 �S. Testing or research laboratories are conditionally permitted in the Office Professional (OP) District and Service Industrial (SI) District. C. Commercial cultivation businesses are conditionally permitted in the SI District. d. Delivery-only businesses are conditionally permitted in the SI District. e. Distribution businesses are conditionally permitted in the SI District. f. Manufacture businesses are conditionally permitted in the SI District. 2. Commercial cannabis businesses shall conform to the following separation requirements: a. No conditional use permit shall be issued to a cannabis retailer that is located within 1,500 feet of another approved commercial cannabis business. No more than three (3) cannabis retailers will be permitted to operate on a single street. b. A commercial cannabis business whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City's Service Industrial zoning district only, shall be separated by 1,500 feet from another approved commercial cannabis business. ORDINANCE NO.: 1329 C. A commercial cannabis business whose main business function is to operate as a testing or research laboratory is not subject to a separation requirement ef 500Teet-from another approved commercial cannabis business and is exempt from the 1,500 foot separation requirement listed in subsections a. and b., above. d. No conditional use permit will be issued for commercial cannabis business located within 1,0600 feet of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued. e. With the exception of commercial cannabis businesses whose business is located within a mixed-use building or whose primary business function is as a testing or research laboratory, no conditional use permits shall be issued for commercial and industrial properties abutting public parks or private residence. f. All separation requirements will be measured from the outer extents of the commercial cannabis businesses lease space to the outer extents of another commercial cannabis businesses lease space, or to the property line of a school, daycare center and youth center. 3. Conditional Use Permit Submittal Requirements - In addition to the requirements listed in the conditional use permit, all commercial cannabis business applicants shall submit the following information: a. Exterior Fagade. Renderings of the business fagade shall be provided and reviewed as part of the Conditional Use Permit. Building fagade plans shall include renderings of the exterior building elevations for all side of the building. All building facades shall be tastefully done and in keeping with the high architectural quality and standards of the City of Palm Desert. Because State Law limits certain advertising, the business fagade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. b. Energy and Water Assessments. Commercial cannabis businesses shall supply energy and water assessments for review as part of the conditional use permit process. These assessments shall estimate the total amount of annual electrical and water use required to operate the commercial cannabis business. Review of the assessment may require the applicant to supplement electrical and water use at the site to minimize adverse environmental impacts. E. Grounds for Permit Denial, Suspension, and Revocation Any conditional use permit issued pursuant to the provisions of this section may be denied, suspended, or revoked by the Planning Commission upon receiving satisfactory evidence that the applicant or permittee or owner, its agent(s), employee(s), or any person connected or associated with the applicant or permittee: 1. Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant; ORDINANCE NO.: 1329 2. Has failed to maintain a valid State license; 3. Has failed to comply with any applicable provision of the Palm Desert Municipal Code, including but not limited to this chapter, the City's building, zoning, and health and public safety regulations; 4. Has failed to comply with any condition imposed on the conditional use permit; or 5. Has allowed the existence of or created a public nuisance in violation of the Palm Desert Municipal Code. 6. No Conditional Use Permit will be issued where commercial cannabis businesses are prohibited by covenants, conditions, and restrictions (CC&Rs) that clearly prohibit such use. For buildings located in any area governed by a property owners association or community association (association) and subject to CC&Rs, the applicant must additionally submit a copy of a letter to the association's governing board stating that the applicant's intent to operate a commercial cannabis business and inviting the association to submit a letter to the City stating that: 1) the CC&Rs do not regulate such commercial uses; 2) that commercial cannabis businesses are not prohibited by the CC&Rs; or 3) that the CC&Rs do not allow commercial cannabis businesses as defined herein. If the applicant contests the association's determination that commercial cannabis businesses are not allowed, the applicant shall submit a copy of the CC&Rs to the City. The City shall provide an opportunity for the applicant and the association to be heard based on the evidence submitted. The decision of the City Manager shall be final. 7. For buildings subject to CC&Rs but not within an association, a copy of the CC&Rs shall be submitted to the City to determine whether commercial cannabis businesses are either not regulated or not clearly prohibited by the CC&Rs. F. Personal Cultivation City residents are permitted to cultivate cannabis on private residential property for personal use and in accordance with MAUCRSA, subject to the following standards: 1. Outdoor Cultivation a. Cultivation for personal use is only permitted on private residential property developed with at least one residential dwelling unit. No more than six (6) plants are permitted to be cultivated at a private residence. Property owners retain the ability to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site. b. Outdoor cultivation is limited to rear and side yard areas and only if screened by a solid block wall no less than six (6) feet in height. ORDINANCE NO.: 1329 C. Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method. d. Outdoor cultivation within 600 feet of a school, daycare center, or youth center is prohibited. 2. Indoor Cultivation a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the City's Building and Safety Department. b. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. G. Application Fee and Reimbursement Agreement. At the time an applicant submits an application under this Section, the applicant shall also supply an application fee in an amount to be determined by resolution by the city council, an executed reimbursement agreement on a form provided by the city to fully reimburse the City for all costs, expenses, and fees, including but not limited to attorney fees and consultant fees, incurred by the City related to the commercial cannabis business, and a deposit in an amount as provided for in the reimbursement agreement terms. H. Prohibited Operations. Any commercial cannabis business that does not have (i) an approved conditional use permit, (ii) a regulatory permit required under this code, and (iii) a State License is expressly prohibited in all city zones and is hereby declared a public nuisance that may be abated by the city and is subject to all available legal remedies, including, but not limited to civil injunctions. I. Violations and Penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation, if applicable. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. ORDINANCE NO.: 1379 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. ORDINANCE NO.: 1329 Exhibit C - 25.18.040 Land Use and Permit Requirements Amend Table 25.18-1. "Use Matrix for Downtown Districts" to add the following Land Use Zone Special Use Provisions D D-O I DE DE-0 Retail, Service, and Office Uses Cannabis Retail C N C N 25.34.120 Cannabis Testing or C N N N 25.34.120 Research Laboratory ORDINANCE NO.: 1329 Exhibit "D" PDMC SECTION 5.101 — Commercial Cannabis Business Regulatory Permits A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, and retail sale of medicinal cannabis and non-medicinal adult-use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a regulatory permit under this chapter. "Cannabis" means all parts of the plant 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 cannabis. "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 division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. ORDINANCE NO.: 1329 "City" means the City of Palm Desert. "City manager" means city manager or designee. "Commercial cannabis business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing and research, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed by the City and/or State of California. "Fully enclosed and secured structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers and does not include cannabis cultivation or manufacturing on the premises. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the California Business and Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent (20%) or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other ORDINANCE NO.: 1329 entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. "Permittee" means any person granted a regulatory permit under this chapter. "Person" means any 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 the plural as well as the singular. "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers. "Sell," sale," and "to sell' include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing or Research Laboratory" means a laboratory, facility, or entity in the City that offers or performs tests or research of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Regulatory Permit Required. 1. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit as required under Section 25.34.120, regulatory permit, and a State license for each commercial cannabis business use authorized under the conditional use permit. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a State license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in State license type, business owner, or operation will require an amendment to the approved regulatory permit. 4. This chapter does not apply to cannabis possession or use, as allowed by State law. Regulations on personal cultivation can be found in Chapter 8.38. ORDINANCE NO.: 1329 5. A cannabis delivery service business with a physical address outside the City is not required to obtain a regulatory permit under this chapter, but is required to obtain a City business license. D. Regulatory Permit Application Requirements. An application for a regulatory permit shall include, but shall not be limited to, the following information: 1. The name, address, and telephone number of the applicant. 2. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement operating agreement, and fictitious business name statement. 3. The name, address, telephone number, title, and function of each of the interested parties described in subsection N., below. 4. A legible copy of each applicant's photo identification, such as a state driver's license, a passport issued by the United States, or a permanent resident card. 5. A list of the license or permit types (including license or permit numbers) held by the applicant that involve the operation of a commercial cannabis business, including the date the license or permit was issued and the jurisdiction or State license authority that issued the license or permit. 6. Whether the applicant has been denied a license or permit by the City, any other jurisdiction, and/or the State that involves the operation of a commercial cannabis business. The applicant shall provide a description of the license or permit applied for, the name of the jurisdiction or State license authority that reviewed the license or permit application, and the date of denial. 7. The proposed commercial cannabis business's physical address, telephone number, website address, and e-mail address. 8. Contact information for the applicant's designated primary contact person including the name, title, address, phone number, and e-mail address of the individual. 9. A list of every fictitious business name the applicant is operating under including the address where the business is located. 10. Financial information including the following: a. A list of funds belonging to the commercial cannabis business held in savings, checking, or other accounts maintained by a financial institution. The ORDINANCE NO.: 1329 applicant shall provide for each account, the financial institution's name, the financial institution's address, account type, account number, and the amount of money in the account. b. A list of loans made to the commercial cannabis business. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender. C. A list of investments made into the commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor. d. A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis business. For each gift the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift. 11. A list of each applicant's misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of nolo contendre. 12. A complete and detailed diagram of the proposed premises showing the boundaries of the property and the proposed premises to be permitted, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, storage areas and exterior lighting. The diagram must show the areas in which all commercial cannabis business will take place, including but not limited to, limited-access areas. 13. A security plan, as a separate document, outlining the proposed security arrangements to deter and prevent unauthorized entrance into limited access areas and theft of cannabis, in accordance with minimum security measures required by state law. The security plan shall be reviewed by the Palm Desert Police Department and the city manager and shall be exempt from disclosure as a public record pursuant to Government Code Section 6255(a). 14. A comprehensive business operations plan that includes the following: a. Business plan. A plan describing how the commercial cannabis business will operate in accordance with this code, state law, and other applicable regulations. The plan shall include operational, banking, and personnel procedures to ensure adequate business knowledge, modeling and support. ORDINANCE NO.: 1329 b. Community relations plan. A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. C. Neighborhood responsibility plan. A plan addressing any adverse impacts of the proposed commercial cannabis business on the surrounding area. d. Odor control plan. A plan identifying odor control methods, including, but not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. e. Insurance. The applicant's certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the commercial cannabis business. f. Budget. A copy of the applicant's most recent annual budget for operations. 15. The name and address of the owner and lessor of the real property upon which the commercial cannabis business is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a commercial cannabis business will be operated on his or her property. 16. Authorization for the city manager to seek verification of the information contained within the application. 17. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct. 18. A full and complete copy of the applicant's most current application submitted to and approved by the applicable State licensing authority. 19. Any such additional and further information as is deemed necessary by the city manager to administer this chapter. E. Background Check. The City will provide each applicant and interested parties, as described in Section N., below, with a `request for live scan service' form, which must be taken to a live scan operator for fingerprinting. Each applicant must submit their fingerprint images to the Palm Desert Police Department, California Department of Justice, and the Federal Bureau of Investigation for fingerprint-based criminal history records review and reporting to the City. ORDINANCE NO.: 1329 F. Additional Terms and Conditions. Based on the information set forth in the application, the city manager may impose reasonable terms and conditions on the proposed operations of the commercial cannabis business in addition to those specified in this chapter. G. Regulatory Permit Denial. The city manager may deny an application for a regulatory permit or renewal of a regulatory permit upon making any of the following findings: 1. The applicant or the premises for which a regulatory permit is applied does not qualify for a permit under this chapter. 2. The applicant fails to comply with the provisions of this chapter. 3. The applicant has failed to provide information required by the city manager. 4. The applicant or permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the city manager determines that the applicant or permittee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the city manager shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or permittee to be issued a permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the city manager shall include, but not be limited to, the following: 5. A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance. 6. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. 8. A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the California Penal Code. 9. A felony conviction involving fraud, deceit, or embezzlement. 10. The applicant, or any of its officers, directors, or owners, has been sanctioned by a State licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or has had a State license revoked in the three years immediately preceding the date the application is filed with the city manager. 11. The commercial cannabis business is not properly organized or operating in strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana Program Act ("MMP"), Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"), and any other applicable law, rules and regulations. ORDINANCE NO.: 1329 H. Regulatory Permit Term. A regulatory permit is valid for one (1) year from the date that the permit is issued, unless suspended or revoked sooner. I. Regulatory Permit Renewal Process. 1. To renew a regulatory permit, a completed permit renewal form and renewal permit fee shall be received by the city manager from the permittee no earlier than sixty (60) calendar days before the expiration of the permit and no later than the last business day before the expiration of the permit. 2. In the event the regulatory permit is not renewed prior to the expiration date, the permittee must cease all commercial cannabis business. J. Regulatory Permit Surrender. Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the city manager. The city manager may seize the permit of a permittee who fails to comply with the surrender provisions of this section and may proceed to revoke the permit. If a permittee wishes to close a commercial cannabis business for repair or refurbishment for a period of longer than sixty (60) calendar days, the permittee shall notify the city manager of same in writing. K. Regulatory Permit Suspension and Revocation. The city manager may suspend, modify, or revoke a regulatory permit issued pursuant to the provisions of this Chapter for any of the following reasons: 1. One or more of the circumstances upon which a regulatory permit could be denied exists or has occurred; 2. One or more conditions of the regulatory permit has been violated; or 3. The permittee, its owners, officers, directors, partners, agents, or other persons vested with the authority to manage or direct the affairs of the business have violated any provision of this chapter or State law. L. Appeals. Any decision regarding the denial, suspension, or revocation of a regulatory permit may be appealed to the city council. All appeals shall be in writing and filed with the city clerk within ten calendar days of any decision or action that is the subject of the appeal. After receiving the written appeal, the city clerk shall schedule a hearing before the city council. The city council may refer the matter to a hearing officer. The city council may decide the matter based on the recommendations and findings of the hearing officer, if it so chooses. The decision of the city council or hearing officer shall be final. ORDINANCE NO.: 1329 M. Operational Requirements. All commercial cannabis businesses are subject to the following operational requirements: 1. Commercial cannabis businesses shall maintain compliance with the security plan, business plan, community relations plan, neighborhood responsibility plan, odor control plan, and insurance requirements submitted with their application, unless modifications are accepted in writing by the city manager. 2. Commercial cultivation, possession, manufacture, processing, storing, laboratory testing and research, packaging, and labeling, shall be conducted only within a fully enclosed and secured structure that is not accessible to minors. 3. Commercial cannabis businesses shall not create nuisances such a dust, glare, heat, noise, smoke, odor, and shall not be used to store hazardous materials, products, or wastes. 4. Commercial cannabis businesses shall utilize product and inventory tracking software and accounting software that is in-line with reasonable business practices within the industry. 5. As part of the security plan, permittees shall: a. Install and maintain security cameras that shall cover, but not be limited to covering sale, cultivation, manufacturing, processing, transportation, distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. b. Operate cameras 24 hours per day, seven days per week. C. Maintain at least 120 concurrent hours of digitally recorded documentation. d. Cure any disruption in security camera images expeditiously and in good faith. e. Install alarm systems that are operated and monitored by an independent third party security company. f. Shall lock all storage areas and give access to such storage areas only to permittee and permittee's staff. No cannabis products shall be accessible to the general public. 6. Commercial cannabis businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth center. ORDINANCE NO.: 1329 N. Interested Parties. 1. A permittee shall provide the city with names and addresses of all of the following interested parties: a. Persons with at least a 10% interest in the commercial cannabis business; b. Partners, officers, directors, and stockholders of every corporation, limited liability company, or general or limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business; C. The managers of the commercial cannabis business; and d. The staff of the commercial cannabis business. 2. The permittee shall notify the city of any change in the information above within 30 calendar days of the change. 3. All interested parties, as described in subsection 1, must submit to fingerprinting and a criminal background check by the city. 4. No person shall be an interested party, as described in subsection A of this Section, if he or she is charged with or convicted of a felony; has been charged with or convicted of a violation of California Penal Code section 186.22 (participation in a criminal street gang); or is currently on parole or probation for an offense relating to the sale or distribution of a controlled substance. "Convicted" within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted. "Charged" within the meaning of this section means (1) an indictment was issued by a grand jury, or an information, complaint, or similar pleading was issued by the United States Attorney, district attorney, city attorney, or other governmental official or agency authorized to prosecute crimes, and (2) the criminal proceedings are currently pending. O. Emergency Contact Manager. A commercial cannabis business permittee shall provide the city manager with the current name and primary and secondary telephone numbers of at least one 24-hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the commercial cannabis business. ORDINANCE NO.: 1329 P. Community Relations Manager. Each commercial cannabis business shall provide the city manager with the name, phone number, facsimile number, and e-mail address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the commercial cannabis business or refer members of the public who may have any concerns or complaints regarding the operation of the commercial cannabis business. Each commercial cannabis business shall also provide the above information to its business neighbors located within one hundred (100) feet of the commercial cannabis business as measured in a straight line without regard to intervening structures, between the front doors of each establishment. Q. Display of Regulatory Permit. The permittee shall display its current valid permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the premises. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the premises. R. Inspections and Enforcement. 1. Recordings made by security cameras at any commercial cannabis business shall be made immediately available to the city manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials. 2. The city manager shall have the right to enter all commercial cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. 3. Operation of the commercial cannabis business in non-compliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the municipal code and shall be enforced pursuant to the provisions of this code. 4. The city manager may summarily suspend or revoke a cannabis regulatory permit if any of the following, singularly or in combination, occur: a. The city manager or designee determines that the commercial cannabis business has failed to comply with this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the city manager or designee to deny the permit under subsection F., above. b. Operations cease for more than sixty (60) calendar days, including during change of ownership proceedings, unless otherwise authorized by the city manager; C. Ownership is changed without securing a regulatory permit; or ORDINANCE NO.: 1329 d. The commercial cannabis business fails to allow inspection of the records, security recordings, the activity logs, or the premises by authorized city officials. S. Liability and Indemnification. 1. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this chapter shall not become a personal liability of any public officer or employee of the City. 2. To the maximum extent permitted by law, the permittees under this chapter shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of Palm Desert, the Palm Desert City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called City) from any liability damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs (collectively called "action") against the City to attack, set aside, void or annul, any cannabis-related approvals and actions and comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys' fees. 3. Within ten (10) calendar days of the service of the pleadings upon the City of any action as specified in Subsection 2., above, the permittee shall execute a letter of agreement with the City, acceptable to the Office of the City Attorney, which memorializes the above obligations. These obligations and the letter of agreement shall survive termination, extinguishment or invalidation of the cannabis-related approval. Failure to timely execute the letter of agreement does not relieve the applicant of any of the obligations contained in this section or any other requirements or performance or operating standards that may be imposed by the City. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any regulatory permit pursuant to this chapter or the operation of any commercial cannabis business approved pursuant to this chapter. T. Compliance with State Law. All commercial cannabis businesses shall comply fully with all of the applicable restrictions and mandates set forth in state law, including without limitation the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult- Use Cannabis Regulation and Safety Act ("MAUCRSA"). • ORDINANCE NO.: 1329 U. Violations and Penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. 'ORDINANCE NO.: 1329 Exhibit "D" PDMC SECTION 5.101 — Commercial Cannabis Business Regulatory Permits A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, and retail sale of medicinal cannabis and non-medicinal adult-use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a regulatory permit under this chapter. "Cannabis" means all parts of the plant 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 cannabis. "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 division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. ORDINANCE NO.: 1329 "City" means the City of Palm Desert. "City manager" means city manager or designee. "Commercial cannabis business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing and research, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities permitted or licensed by the City and/or State of California. "Fully enclosed and secured structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers and does not include cannabis cultivation or manufacturing on the premises. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the California Business and Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Manufacturer" means a permittee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Owner" means any of the following: (1) a person with an aggregate ownership interest of 20 percent (20%) or more in the person applying for the permit, unless such interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other ORDINANCE NO.: 1329 entity; (3) a member of the board of directors of a nonprofit; or (4) an individual who will be participating in the direction, control, or management of the person applying for the permit. "Permittee" means any person granted a regulatory permit under this chapter. "Person" means any 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 the plural as well as the singular. "Retail cannabis business" or "retailer" means a business that sells and/or delivers cannabis or cannabis products to customers. "Sell," sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a permittee or licensee to the permittee or licensee from whom such cannabis or cannabis product was purchased. "State license" means a state license issued under Division 10 of the California Business and Professions Code. "Testing or Research Laboratory" means a laboratory, facility, or entity in the City that offers or performs tests or research of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Regulatory Permit Required. 1. Prior to initiating operations and as a continuing requisite to operating a commercial cannabis business in the City, an applicant must obtain and maintain a valid conditional use permit as required under Section 25.34.120, regulatory permit, and a State license for each commercial cannabis business use authorized under the conditional use permit. 2. Building permits for improvements associated with a commercial cannabis business may be issued once an applicant has obtained a conditional use permit and regulatory permit; however, a certificate of occupancy to operate will not be issued until said commercial cannabis business has obtained and provided proof of a State license for each commercial cannabis business use authorized under the conditional use permit. 3. Changes in State license type, business owner, or operation will require an amendment to the approved regulatory permit. 4. This chapter does not apply to cannabis possession or use, as allowed by State law. Regulations on personal cultivation can be found in Chapter 8.38. ORDINANCE NO.: 1329 5. A cannabis delivery service business with a physical address outside the City is not required to obtain a regulatory permit under this chapter, but is required to obtain a City business license. D. Regulatory Permit Application Requirements. An application for a regulatory permit shall include, but shall not be limited to, the following information: 1. The name, address, and telephone number of the applicant. 2. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement operating agreement, and fictitious business name statement. 3. The name, address, telephone number, title, and function of each of the interested parties described in subsection N., below. 4. A legible copy of each applicant's photo identification, such as a state driver's license, a passport issued by the United States, or a permanent resident card. 5. A list of the license or permit types (including license or permit numbers) held by the applicant that involve the operation of a commercial cannabis business, including the date the license or permit was issued and the jurisdiction or State license authority that issued the license or permit. 6. Whether the applicant has been denied a license or permit by the City, any other jurisdiction, and/or the State that involves the operation of a commercial cannabis business. The applicant shall provide a description of the license or permit applied for, the name of the jurisdiction or State license authority that reviewed the license or permit application, and the date of denial. 7. The proposed commercial cannabis business's physical address, telephone number, website address, and e-mail address. 8. Contact information for the applicant's designated primary contact person including the name, title, address, phone number, and e-mail address of the individual. 9. A list of every fictitious business name the applicant is operating under including the address where the business is located. 10. Financial information including the following: a. A list of funds belonging to the commercial cannabis business held in savings, checking, or other accounts maintained by a financial institution. The ORDINANCE NO.: 1329 applicant shall provide for each account, the financial institution's name, the financial institution's address, account type, account number, and the amount of money in the account. b. A list of loans made to the commercial cannabis business. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender. C. A list of investments made into the commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor. d. A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis business. For each gift the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift. 11. A list of each applicant's misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of nolo contendre. 12. A complete and detailed diagram of the proposed premises showing the boundaries of the property and the proposed premises to be permitted, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, storage areas and exterior lighting. The diagram must show the areas in which all commercial cannabis business will take place, including but not limited to, limited-access areas. 13. A security plan, as a separate document, outlining the proposed security arrangements to deter and prevent unauthorized entrance into limited access areas and theft of cannabis, in accordance with minimum security measures required by state law. The security plan shall be reviewed by the Palm Desert Police Department and the city manager and shall be exempt from disclosure as a public record pursuant to Government Code Section 6255(a). 14. A comprehensive business operations plan that includes the following: a. Business plan. A plan describing how the commercial cannabis business will operate in accordance with this code, state law, and other applicable regulations. The plan shall include operational, banking, and personnel procedures to ensure adequate business knowledge, modeling and support. ORDINANCE NO.: 1329 b. Community relations plan. A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. C. Neighborhood responsibility plan. A plan addressing any adverse impacts of the proposed commercial cannabis business on the surrounding area. d. Odor control plan. A plan identifying odor control methods, including, but not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. e. Insurance. The applicant's certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the commercial cannabis business. f. Budget. A copy of the applicant's most recent annual budget for operations. 15. The name and address of the owner and lessor of the real property upon which the commercial cannabis business is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a commercial cannabis business will be operated on his or her property. 16. Authorization for the city manager to seek verification of the information contained within the application. 17. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct. 18. A full and complete copy of the applicant's most current application submitted to and approved by the applicable State licensing authority. 19. Any such additional and further information as is deemed necessary by the city manager to administer this chapter. E. Background Check. The City will provide each applicant and interested parties, as described in Section N., below, with a `request for live scan service' form, which must be taken to a live scan operator for fingerprinting. Each applicant must submit their fingerprint images to the Palm Desert Police Department, California Department of Justice, and the Federal Bureau of Investigation for fingerprint-based criminal history records review and reporting to the City. ORDINANCE NO.: 1329 F. Additional Terms and Conditions. Based on the information set forth in the application, the city manager may impose reasonable terms and conditions on the proposed operations of the commercial cannabis business in addition to those specified in this chapter. G. Regulatory Permit Denial. The city manager may deny an application for a regulatory permit or renewal of a regulatory permit upon making any of the following findings: 1. The applicant or the premises for which a regulatory permit is applied does not qualify for a permit under this chapter. 2. The applicant fails to comply with the provisions of this chapter. 3. The applicant has failed to provide information required by the city manager. 4. The applicant or permittee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the city manager determines that the applicant or permittee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the city manager shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or permittee to be issued a permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the city manager shall include, but not be limited to, the following: 5. A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance. 6. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. 8. A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the California Penal Code. 9. A felony conviction involving fraud, deceit, or embezzlement. 10. The applicant, or any of its officers, directors, or owners, has been sanctioned by a State licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or has had a State license revoked in the three years immediately preceding the date the application is filed with the city manager. 11. The commercial cannabis business is not properly organized or operating in strict compliance pursuant to the Compassionate Use Act of 1996, the Medical Marijuana Program Act ("MMP"), Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"), and any other applicable law, rules and regulations. ORDINANCE NO.: 1329 H. Regulatory Permit Term. A regulatory permit is valid for one (1) year from the date that the permit is issued, unless suspended or revoked sooner. I. Regulatory Permit Renewal Process. 1. To renew a regulatory permit, a completed permit renewal form and renewal permit fee shall be received by the city manager from the permittee no earlier than sixty (60) calendar days before the expiration of the permit and no later than the last business day before the expiration of the permit. 2. In the event the regulatory permit is not renewed prior to the expiration date, the permittee must cease all commercial cannabis business. J. Regulatory Permit Surrender. Every permittee who surrenders, abandons, or quits the permitted premises after a certificate of occupancy is issued, or who closes the permitted premises for a period exceeding sixty (60) consecutive calendar days after a certificate of occupancy is issued, shall, within sixty (60) calendar days after closing, surrendering, quitting, or abandoning the permitted premises, surrender the permit to the city manager. The city manager may seize the permit of a permittee who fails to comply with the surrender provisions of this section and may proceed to revoke the permit. If a permittee wishes to close a commercial cannabis business for repair or refurbishment for a period of longer than sixty (60) calendar days, the permittee shall notify the city manager of same in writing. K. Regulatory Permit Suspension and Revocation. The city manager may suspend, modify, or revoke a regulatory permit issued pursuant to the provisions of this Chapter for any of the following reasons: 1. One or more of the circumstances upon which a regulatory permit could be denied exists or has occurred; 2. One or more conditions of the regulatory permit has been violated; or 3. The permittee, its owners, officers, directors, partners, agents, or other persons vested with the authority to manage or direct the affairs of the business have violated any provision of this chapter or State law. L. Appeals. Any decision regarding the denial, suspension, or revocation of a regulatory permit may be appealed to the city council. All appeals shall be in writing and filed with the city clerk within ten calendar days of any decision or action that is the subject of the appeal. After receiving the written appeal, the city clerk shall schedule a hearing before the city council. The city council may refer the matter to a hearing officer. The city council may decide the matter based on the recommendations and findings of the hearing officer, if it so chooses. The decision of the city council or hearing officer shall be final. ORDINANCE NO.: 1329 M. Operational Requirements. All commercial cannabis businesses are subject to the following operational requirements: 1. Commercial cannabis businesses shall maintain compliance with the security plan, business plan, community relations plan, neighborhood responsibility plan, odor control plan, and insurance requirements submitted with their application, unless modifications are accepted in writing by the city manager. 2. Commercial cultivation, possession, manufacture, processing, storing, laboratory testing and research, packaging, and labeling, shall be conducted only within a fully enclosed and secured structure that is not accessible to minors. 3. Commercial cannabis businesses shall not create nuisances such a dust, glare, heat, noise, smoke, odor, and shall not be used to store hazardous materials, products, or wastes. 4. Commercial cannabis businesses shall utilize product and inventory tracking software and accounting software that is in-line with reasonable business practices within the industry. 5. As part of the security plan, permittees shall: a. Install and maintain security cameras that shall cover, but not be limited to covering sale, cultivation, manufacturing, processing, transportation, distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. b. Operate cameras 24 hours per day, seven days per week. C. Maintain at least 120 concurrent hours of digitally recorded documentation. d. Cure any disruption in security camera images expeditiously and in good faith. e. Install alarm systems that are operated and monitored by an independent third party security company. f. Shall lock all storage areas and give access to such storage areas only to permittee and permittee's staff. No cannabis products shall be accessible to the general public. 6. Commercial cannabis businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth center. ORDINANCE NO.: 1329 N. Interested Parties. 1. A permittee shall provide the city with names and addresses of all of the following interested parties: a. Persons with at least a 10% interest in the commercial cannabis business; b. Partners, officers, directors, and stockholders of every corporation, limited liability company, or general or limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business; C. The managers of the commercial cannabis business; and d. The staff of the commercial cannabis business. 2. The permittee shall notify the city of any change in the information above within 30 calendar days of the change. 3. All interested parties, as described in subsection 1, must submit to fingerprinting and a criminal background check by the city. 4. No person shall be an interested party, as described in subsection A of this Section, if he or she is charged with or convicted of a felony; has been charged with or convicted of a violation of California Penal Code section 186.22 (participation in a criminal street gang); or is currently on parole or probation for an offense relating to the sale or distribution of a controlled substance. "Convicted" within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted. "Charged" within the meaning of this section means (1) an indictment was issued by a grand jury, or an information, complaint, or similar pleading was issued by the United States Attorney, district attorney, city attorney, or other governmental official or agency authorized to prosecute crimes, and (2) the criminal proceedings are currently pending. O. Emergency Contact Manager. A commercial cannabis business permittee shall provide the city manager with the current name and primary and secondary telephone numbers of at least one 24-hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the commercial cannabis business. ORDINANCE NO.: 1329 P. Community Relations Manager. Each commercial cannabis business shall provide the city manager with the name, phone number, facsimile number, and e-mail address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the commercial cannabis business or refer members of the public who may have any concerns or complaints regarding the operation of the commercial cannabis business. Each commercial cannabis business shall also provide the above information to its business neighbors located within one hundred (100) feet of the commercial cannabis business as measured in a straight line without regard to intervening structures, between the front doors of each establishment. Q. Display of Regulatory Permit. The permittee shall display its current valid permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the premises. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the premises. R. Inspections and Enforcement. 1. Recordings made by security cameras at any commercial cannabis business shall be made immediately available to the city manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials. 2. The city manager shall have the right to enter all commercial cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. 3. Operation of the commercial cannabis business in non-compliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the municipal code and shall be enforced pursuant to the provisions of this code. 4. The city manager may summarily suspend or revoke a cannabis regulatory permit if any of the following, singularly or in combination, occur: a. The city manager or designee determines that the commercial cannabis business has failed to comply with this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the city manager or designee to deny the permit under subsection F., above. b. Operations cease for more than sixty (60) calendar days, including during change of ownership proceedings, unless otherwise authorized by the city manager; C. Ownership is changed without securing a regulatory permit; or ORDINANCE NO.: 1329 d. The commercial cannabis business fails to allow inspection of the records, security recordings, the activity logs, or the premises by authorized city officials. S. Liability and Indemnification. 1. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this chapter shall not become a personal liability of any public officer or employee of the City. 2. To the maximum extent permitted by law, the permittees under this chapter shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of Palm Desert, the Palm Desert City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called City) from any liability damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs (collectively called "action") against the City to attack, set aside, void or annul, any cannabis-related approvals and actions and comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys' fees. 3. Within ten (10) calendar days of the service of the pleadings upon the City of any action as specified in Subsection 2., above, the permittee shall execute a letter of agreement with the City, acceptable to the Office of the City Attorney, which memorializes the above obligations. These obligations and the letter of agreement shall survive termination, extinguishment or invalidation of the cannabis-related approval. Failure to timely execute the letter of agreement does not relieve the applicant of any of the obligations contained in this section or any other requirements or performance or operating standards that may be imposed by the City. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any regulatory permit pursuant to this chapter or the operation of any commercial cannabis business approved pursuant to this chapter. T. Compliance with State Law. All commercial cannabis businesses shall comply fully with all of the applicable restrictions and mandates set forth in state law, including without limitation the Compassionate Use Act of 1996 ("CUA"), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult- Use Cannabis Regulation and Safety Act ("MAUCRSA"). ORDINANCE NO.: 1329 U. Violations and Penalties. 1. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, administrative penalties, permit suspension, and permit revocation. 2. Violations of this chapter constitute an infraction or misdemeanor and may be enforced by any applicable law. 3. Violations of this chapter are hereby declared to be public nuisances. 4. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies. 5. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. ORDINANCE NO.: 1329 Exhibit "E" PDMC Chapter: 8.38 — Personal Use of Cannabis A. Purpose and Intent It is the purpose and intent of this chapter to regulate the personal use and possession of medicinal cannabis and non-medicinal adult use cannabis within the City of Palm Desert in compliance with applicable state and local laws. B. Definitions "Cannabis" means all parts of the plant 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 cannabis. "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. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Day care center" means any child day care facility including infant centers, preschools, extended day care facilities, and school age child care centers. "Personal residence" means a house, an apartment unit, a mobile home, or other similar dwelling. "Smoke" means to inhale, exhale, burn, or carry any lighted or heated device or pipe, or any other lighted or heated marijuana or marijuana product intended for inhalation, whether natural or synthetic, in any manner or in any form. "Smoke" includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking in a place. "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. C. Personal Use and Possession All personal use and possession of cannabis must be in compliance with the Compassionate Use Act ("Act"), the Medical Marijuana Program ("MMP"), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"). In addition, the restrictions listed below apply. It shall be unlawful and a public nuisance to: 1. Smoke or ingest cannabis or cannabis products in a public place, including, but not limited to streets, sidewalks, parks, or any common areas within a residential development, including but not limited to private streets and sidewalks, common parking areas, parks or other spaces maintained by an homeowners or property owners association and accessible to residence of the development. 2. Smoke cannabis or cannabis products in a location where smoking tobacco is prohibited under Chapter 8.36 Regulation and Prohibition of Smoking. 3. Possess, smoke or ingest cannabis or cannabis products in or upon the grounds of a school, day care center, or youth center; or smoke cannabis or ingest cannabis within 1,000 feet of a school, day care center, or youth center, except in or upon grounds of private residence and then only if such smoking is not detectable by others on the grounds of any school, day care center, or youth center. 4. Smoke cannabis or use cannabis products on City property, including parks, common areas in City-owned housing developments, and other public places. D. Penalties for Violation 1. Any person who violates any provision of this chapter is deemed guilty of misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney in accordance with Chapter 1.12 of this code. 2. Any violation of this chapter is hereby declared to be a public nuisance. 3. Each incident of smoking in violation of this chapter is subject to a one-hundred-fifty- dollar fine. 4. The provisions of this section are not to be construed as exclusive remedies and, in the event of violation, the city may pursue any proceedings or remedies otherwise provided by law. 2 Alternate CCR review language to replace 25.34.120(E) (6) and (7) "6. No Conditional Use Permit will be issued where commercial cannabis businesses are prohibited by covenants, conditions, and restrictions (CC&Rs)that clearly prohibit such use. For buildings located in any area governed by CC&Rs, the applicant must additionally submit a statement certifying that any applicable CCRs do not prohibit the use for which the applicant is seeking approval." ems:rsa�='.au at.. E r CC AG EN v A PACKIT i L A � r SET-;,ilvo4 C C( _2Q (� September 25, 2017 City of Palm Desert City Council, I wish to convey to the city planners that we don't object to the possibility of marijuana dispensaries on El Paseo. As long as the storefronts be designed and built with high quality and visually pleasing inside and out as we would like to keep El Paseo's image to the highest or standards. More than a just a store, we support BIGHORN members whom we know to be seeking a Conditional Use permit for this purpose on El Paseo. We have known some of these good people as customers of ours for over 3 years. We know they have the business acumen, the financial wherewithal and the support of the community in becoming a member of the El Paseo Business district. Claudio Marfia GM/Partner II Corso o �a >� a 3r-m N vr"O co cn x t?t N -^ .• 7 T. o � RASCA JEWELER,. 73-560 EL PASEO, PALM DESERT, CA 92260 (760) 568-5848 - www.mfrascajewelers.com 15 September 2017 1-7 Dear City of Palm Desert, Frasca jewelers has been a retailer on beautiful El Paseo for the last 33 years. We would like to weigh in on the marijuana dispensaries discussion...specifically on El Paseo. We support the possibility of marijuana dispensaries in Palm Desert. We would like to be assured that they are placed in commercial zones only and in a limited number. As for El Paseo,we would like to go on record that we do not object to a marijuana dispensary on El Paseo. However,because of the upscale images f-Paseo;we would only support the'dispensary-if it also was an upscale retail operation. We would only ask that the city keep in mind that the dispensary storefront be designed and built with high quality,visually pleasing exterior and interior that is in line with the image of El Paseo. More to the point,we support BIGHORN members who we know are seeking a Conditional Use permit for this purpose on El Paseo. We have known some of these good people as customers of ours for over 25 years. We know that they have the business acumen,the financial wherewithal,as well as the support of the community to own and operate a successful dispensary on El Paseo. We should embrace them and their business model as a member of our El Paseo Business District community. Thank you for your consideration in this most important matter. Sincerely, Maria Frasca,President Frasca jewelers IV O f i m--}.n x jr-�Ti tv omn co mmm � m N C � 1 O N EL PAS EO OP111r`tr 51-nF0un l �0 N September 20,2017 City of Palm Desert );,wO 73510 Fred Waring Drive I: Palm Desert,CA 92260 * CM '' I Dear City of Palm Desert,City Council and El Paseo Business Development District, F-� 175 m� C= o r�rxrrvzm�rc:�+ru� w.J D.� I am writing to show my support to the city of Palm Desert to the possibility of marijuana dispensaries V) r located on El Paseo.I hope that these dispensaries mirror the look that has become the norm of El =r"M tV C7 Paseo with high quality storefronts. r*t C-)O rn;'Dm �M In addition,I would like to express my support for those Bighorn members whom we know to be seeking (V r a Conditional Use permit for this purpose on El Paseo.I have known some of these members for many W > years as superb customers.I know they have the business acumen,the financial wherewithal and the O m support of the community in becoming a proud member of the El Paseo Business District. Sincerely, Mitchell Epstein/Owner 73951 El Paseo Palm Desert, CA 92260 rer:760.779.9200 fox.760.779.8722 mitchsonelpaseo.com 1rt Short Ordcr ^�"r'.:~°° POINT —' DAILY GRILL `j�tcGR�LL -3 tS.S rz+TtL�st�ftc. _7r�Dis L�?5�"R'Ri+aEtr.^,_^n.y C C AE;i-/A FAC September 22,2017 City of Palm Desert 73-510 Fred Waring Drive palm Desert CA 92260-2578 Dear City of Palm Desert,City Council and El Paseo Business Development District 1 am writing this letter as a show of support for a high-end conditional use permit for the soon to be le alized purchase of marijuana—medical or recreational on El Paseo. My hope is that the city will set gwith a high forth guidelines that will ensure the retail space is desig oae f ont appearances that we enjoy on E1 aesthetically pleasing exterior and interior that maintains the upscale Paseo with 80%of the current tenants. Sincerely, Charles N. Mathewson Owner The Daily Grill o� ;Z t 8 gZ 43S U04 V J .i d3534 W IV d �c (I' �1303b),110 Easton Builders Tel: (760)346-5076 73-725 EI Paseo, Suite 24-B Fax: (760)346-8676 Easton Palm Desert, California 92260 Eastoncorp@aol.com Builders P.O. Box 3235 Palm Desert, California 92261 eziz rA cc r September 25, 2017 ' "{s �, J7. City of Palm Desert Palm Desert City Council In regard to the current initiative before the City of Palm Desert, I would like to offer my support in regard to allowing high end, aesthetically pleasing Marijuana dispensaries on El Paseo. I understand this matter is currently being sorted thru the various planning councils in regard to use, locations, permits, etc. Indeed when the legalization of marijuana comes to Palm Desert in January 2018; 1 feel that the City should be prepared to go forward—and also showcase what is one of the City's crown jewels- El Paseo. Many other"resort" towns,who already have lawful dispensaries in place, have found common ground with high-end retailers on the same block, and are presenting the opportunity of a dispensary in a high end market -and maintaining that high-end market with safe guards set in place by the City. I feel that Palm Desert/El Paseo can definitely do the same. Sincerely, (at'L�� 2����7 Curt Dunham, Owner Easton Builders ae :Z Nd 8Z d3S LIN vj i83S30 H-iva 30I1iQo 311i3�3� A1t3 -.:///���t"t.:':.:!Z�'r:�u_^^'SRC[g,T�'l_-:�-}i-rav3.+,+3L..'w7 f Palm Desert Attn: City o _._._.. . .- a City Council � .4 =.. El Paseo Business Improvement District Dear Palm Desert City Council, I wish to convey to the City planners that we at Melissa Morgan Fine Art are in favor of and would like to go on the record to say we support the possibility of marijuana dispensaries on El Paseo. We would only ask that the city keep in mind that these storefronts be designed and built with a highest quality,visually pleasing exterior and interior that is in line with the image of El Paseo. More to the point, we support those BIGHORN members whom we know to be seeking a Conditional Use permit for this purpose on El Paseo. We have known some of these good people as customers of ours for over 1S years.We know they have the business acumen, the financial wherewithal and the support of the community in becoming members of the El Paseo Business district. I personally have been a member and or resident of Big Horn since 2002 and opened my first art gallery Modern Masters on El Paseo in 2003. 1 have successfully owned and operated art galleries on El Paseo from 2003 until the present 2017 and hope to continue far into the future.There are other resort areas such as Aspen that have managed to choose dispensary operators as carefully as they have curated their premium brands . My wish would be that aesthetically any dispensaries be in line with Imago, Leeds and Sons or even Big Horn. Respectfully, Melissa Morgan Melissa Morgan Fine Art 73040 El Paseo Palm Desert CA MelissaCa@Melissamorganfineart.com 760 341 1056 0 760 8614744 C 1 OE �Z �1d 8Z d3S HE `,i L83S30 WlVd September 20, 2017 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Dear City of Palm Desert, City Council and El Paseo Business Development District: I would like to voice my opinion and support of extending a Conditional Use Permit for a Marijuana Dispensary on El Paseo when it becomes legal in January 2018. I have operated a business in Palm Desert for over 27 years- and we've been in our current location on El Paseo for the last 8 years. There are many other upscale cities already taking advantage of merging high-end dispensaries among high-end retail space. I believe that El Paseo would be wise to take advantage of the same opportunity. Sincerely, 4: c U c M. Antoine Babai Le Pa a,- � Uj cc W CO ctor N +_a o Reservations: (760) 610-5320 73-399-200 El Paseo Suite #200 Palm Desert, CA 92260 Mailing address:P.O.BOX 2963Palm Desert, CA 92260 It'lt'li'.iepllUJl J'eStlllli'tlll t.C'OJII NOBLE & COMPANY, LLC City of Palm Desert August 23, 2017 Ao; 2 2017 Honorable Jan Harnik Community Development Mayor City of Palm Desert HAND DELIVERED Re: Proposed Cannabis Ordinance Dear Mayor Harnik: Enclosed please find copies of correspondence dating back to April 28, 2017. On behalf of the Gateway Industrial Park at Palm Desert POA and Noble &Company, LLC, I have raised several concerns regarding the referenced proposed ordinance and the fol;owing concerns are still open: 1. The proposed ordinance does not adequately protect residential properties. All other such ordinances that I have reviewed require a minimum 250 foot separation between cannabis businesses and residential properties. The proposed Palm Desert ordinance would prohibit such businesses from properties which "abut...private residential properties...". The provided definition of"private residence" is "...a house, an apartment unit, mobile home or other similar dwelling unit." No definition of the term "private residential properties" is provided and one should be added providing that such properties are those zoned for any residential use. Also, due to the likelihood that such business will emit noxious orders as well as the possibility of robberies and burglaries due the their cash nature, a 250 foot separation should be the minimum required; 2. We request that, as part of the City's CUP process for cannabis businesses, applicants be advised to determine whether the property on which they intend to operate is subject to CC&Rs. If so, a determination by the Property Owners'Association or other entity with reviewing authority that the proposed business is allowed under the CC&Rs would be required. Thank you for your attention to these requests. I will be happy to provide any additional information that would be helpful. Sincerely, Thomas S. Noble Cc: Mayor Pro Tern Jonathon Councilmember Kelly Councilmember Nestande Councilmember Weber Lauri Aylaian Ryan Stendell Eric Ceja 34360 Gateway Drive, Palm Desert, CA 92211 Tel. (760) 770-3100 • Fax (760) 770-3199 • noblecompanyllc@aol.com www.noblecompanyllc.com Gateway Industria4 Park at Pahin Desert Property Owners' Association, Inc. P® Box 12950 Psi➢ n Desert, CA 92255 (760) 770-3100 - Fax (760) 770-3199 April 28,2017 Mr. Ryan Stendell Director of Community Development City of Palm Desert 73-5 10 Fred Waring Drive Palm Desert, CA 92260 By e-mail: rstendell@cityofpalmdesert.org Original by U.S. Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Ryan: I have reviewed the referenced draft ordinance on behalf of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., and offer the following comments: l. Apparently the draft ordinance does not specify a minimum distance by which a commercial marijuana operation must be separated from residential property. Ordinances adopted by other Coachella Valley cities require a minimum distance of 250 feet and we suggest that at least that standard should apply in Palm Desert; 2. The recorded CC&Rs of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc.,provides at Section 8.2.5 Nuisance: "No Parcel or portion thereof shall be used for any purpose or business which is dangerous or unsafe,which constitutes a nuisance, or is in any way obnoxious or offensive by reason of, among other things,the emission of dust, odors, smoke,vibrations, electro- mechanical disturbances, intermittent lights, glare, noise, fumes, ash or sound." We ask that any party requesting a CUP under this ordinance (when/if adopted)be advised of this provision and that approval by this Property Owners' Association be required before approval of any such CUP. i Mr. Ryan Stendell April 28, 2017 Page 2 of 2 Thank you for your attention to these requests,please feel free to contact us with any questions or comments that you may have. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., Thomas S.Noble President Cc: Caroline Halcovich Fabio Ceresa 5/3/2017 GmaiI-Attached Letter mail Tom Noble <noblecompany760@gmail.com> Attached Letter sharon noblecompanylic.com <sharon@noblecompanyllc.com> Sat, Apr 29, 2017 at 10:57 AM To: noblecompany760@gmail.com Original Message — From: eceja@cityofpalmdesert.org To: sharon@noblecompanyllc.com Cc: rstendell@cityofpalmdesert.org Date: April 28, 201 Tat 6:05 PM Subject: RE: Attached Letter Hi Tom, Thank you for your letter regarding the City's Cannabis Ordinance. So far the committee has not considered a separation requirement between cannabis uses and residential properties. I think this is because some are looking to treat cannabis like any other retail establishment and we do not have that requirement for other retail uses. I will present your idea to the committee at their next meeting in late May and see what they recommend. Regarding you second concern, property owners retain the right to lease to businesses they see fit for their properties. All Conditional Use Permit applications require the property owner to consent (sign off)to the use and without property owners consent we will not even take in the application. Thanks, Eric Ceja, Principal Planner Community Development Department eceja@cityofpalmdesert.org P: (760) 346-0611 F: (760)776-6417 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 —Original Message— From: Stendell, Ryan Sent: Friday, April 28, 2017 12:01 PM To: Ceja, Eric Subject: FW: Attached Letter Ryan Stendell Director of Community Development Ph: 760.346.0611 Direct: 760.776.6386 rstendell@cityofpalmdesert.org -----Original Message----- From: Sharon Walton (mailto:sharon@noblecompanyl[c.com] Sent: Friday, April 28, 2017 12:00 PM To: Stendell, Ryan Cc: fceresa1@gmail.com; 'Tom Noble' Subject: Attached Letter Mr. Stendell, Please see attached letter from Tom Noble. If you have any questions, please do not hesitate to contact him directly on his cell 760-221-3559. Thank you. https://mail.google.com/mail/u/0/?ui=2&ik=5a8da8f852&view=pt&msg=15bbadcb90e29a9c&search=inbox&siml=15bbadcb90e29a9c 1/2 Gateway Industrial Park at Palm Desert Property Owners' Association, Inc. PO Box 12950 Palm Desert, CA 92255 (760) 770-3100 • Fax (760) 770-3199 May 3,2017 Mr. Eric Ceja Principal Planner Community Development Department City of Palm Desert 73-5 10 Fred Waring Drive Palm Desert, CA 92260 By e-mail: eceia@cityofpalmdesert.org Original by U.S. Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Eric: Thanks for your very prompt reply to my letter of April 28"' to Ryan Stendell. I will appreciate your bringing my comments regarding the need for a specified minimum distance between a cannabis facility and residential property to the attention of the members of the cannabis advisory committee and I hope that they will follow the lead of other jurisdictions in recommending same. I do not understand the concept of treating cannabis operations which may be permitted by the proposed ordinance"...like any other retail establishment....". The proposed ordinance would allow the full spectrum of marijuana related functions including cultivation and manufacture. It is questionable whether such activities are appropriate in Palm Desert's Service Industrial (SI)zone and they certainly do not meet the stated goals of the City's commercial areas. The CC &R's of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc.,present a separate issue. The restrictions quoted in my April 281h letter are binding on all users of property in this development, not just owners. Owners of such property should be aware of the CC&Rs but tenants may not be. It would be in no one's interest for a tenant to be granted a CUP for a function which would emit odors in violation of the CC&Rs. Rather than to get into the legal wrangling entailed in the enforcement of CC&Rs it would be much better to be certain that all parties to a potential lease or sale have actual notice of the use restrictions which apply to this development. We will call the attention of all owners within this Mr. Eric Ceja May 3,2017 Page 2 of 2 association to the restrictions set out in the CC&Rs and we think that it would be wise for the City to do likewise. Thank you again for your attention to these concerns. Please let me know if you would like to discuss these issues in person. Also,please advise me of all future meetings on this matter. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., By: Thomas S.Noble President Cc: Caroline Halcovich Fabio Ceresa 5/17/2017 Gmail-Attached letter ---------- Forwarded message---------- From: Tom Noble <noblecompany760@gmail.com> Date: Fri, May 5, 2017 at 9:34 AM Subject: Re: Attached letter To: eceja@city of palm desert.org Cc: Sharon@noblecompanyllc.com, Bob Hargreaves <Robert.Hargreaves@bbklaw.com> Eric, Thanks for the up-date. Sorry to load you down with more questions but will you recommend a specific number of feet between cannabis facilities and residential property?When will the next committee meeting be held? Also, just to be clear, my concern regarding such facilities being in violation of our CC&Rs does not end with a property owner's approval of a tenant's or purchaser's application. It is very possible that an owner could give such approval but that the subject facility would be in violation of the CC&Rs by, as one example, emitting odors once it goes into operation. In such a case the POA would have the right to seek an injunction to stop such odors even if that required shutting down the business. It is obviously in everyone's interest to make all parties fully aware of the CC&R's provisions at the outset instead of having to enforce them with expensive legal action at a later date. Since this is largely a legal question I am copying the city attorney on this message. Thank you again for your attention to these matters. Tom Noble On Thu, May 4, 2017 at 5:12 PM, <eceja@cityofpalmdesert.org> wrote: Thank you for the letter. I will be recommending to the Committee that we prohibit cannabis related uses adjacent to residential properties. In addition, we do not receive or approve conditional use permit applications without property owner authorization. Thanks, Eric Ceja, Principal Planner Community Development Department eceja@cityofpalmdesert.org P: (760) 346-0611 F: (760) 776-6417 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Go gle robbery at marijuana dispensary a O All News Maps Shopping Videos More Settings Tools About 212,000 results(0.50 seconds) Armed robbers hit Spring Valley marijuana dispensary-The San... www.sandiegouniontribune.com/news/ /sd-me-pot-robbery-20170607-story.hti-nI Jun 7,2017-A Spring Valley marijuana dispensary was robbed late Tuesday,shortly before closing time. Masked men rob marijuana dispensary I fox5sandiego.com fox5sandiego.com/2017/06/07/masked-men-rob-i-narijuana-dispensary/ Jun 7,2017-Police are looking for several masked men who allegedly robbed a Spring Valley pot shop late Tuesday. Cathedral City medical marijuana dispensary robbed-The Desert Sun www.desertsun.com/story/news/crime—courts/2017/04/27/cathedral.../307190001/ Apr 27,2017-A robbery was reported Wednesday night at No Wait Meds on Ramon Road. Perris men arrested in robbery of marijuana dispensary— Press... www.pe.com/2017/05/12/perris-men-arrested-in-robbery-of-marijuana-dispensary/ May 12,2017-Two Perris men were arrested after sheriff's officials say someone robbed a dispensary of marijuana and later pointed a gun at the victim. Pot dispensary attempted robbery-LA Times www.latimes.com/local/lanow/87503661-132.html Two men who attempted to rob a medical marijuana dispensary in Walnut Park on Tuesday night are in critical condition after the business owner pulled out a... UPDATE:Surveillance photos released of medical marijuana... www.ktiiv.coin/news/medical-marijuana-dispensary-robbed-at-gunpoint-on-wednesday Jan 18,2017-LAS VEGAS(KTNV)—The Las Vegas Metropolitan Police Department reports that a medical marijuana dispensary was robbed at gunpoint on... Man Fatally Shot in Pot Dispensary Robbery-NBC Southern California www.nbclosangeles.com/news/.../Man-Fatally-Shot-in-Pot-Dispensary-Robbery.html Jan 18,2017-A man was shot and killed Wednesday during a robbery at a marijuana dispensary in Mar Vista. Are Weed Dispensary Robberies On The Rise?-News I MERRY JANE https://merryjane.com/news/are-weed-dispensary-robberies-on-the-rise Jun 27,2016-Marijuana dispensaries are frequently being robbed. Las Vegas police name suspects in marijuana dispensary robbery... https://www.reviewj ou rnal.com/.../robberies/las-vegas-pol ice-name-suspects-i n-ma riju... Jul 30,2017-The Metropolitan Police Department has identified four men they suspect robbed of a marijuana dispensary Saturday in the central valley and... Robberies at Phoenix Medical-Marijuana Dispensaries Show Need for... www.plioenixtiewtinies.com/.../robberies-at-plioeiiix-medical-marijuana-dispensaries-... Apr 11,2017-A spate of recent robberies and thefts at Phoenix-area dispensaries has medical- marijuana representatives talking about the need for improved... Cannabis Legal/Business-Consultation-Dispensaries ad www.narayanlawgroup.com/JD-Columbi@MBA Challenges/Opportunities.Compliance Issues with Federal/State Laws/Regulations Consultation Cannabis Law Services:Immigration Law,Family Law,Trial Services,Medical Cannabis Law,Litigation Searches related to robbery at marijuana dispensary dispensary robbery san diego dispensary robbery los angeles 1 2 3 4 5 6 7 8 9 10 Next The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 �� 760-778-4578/Fax 760-778-4731 1l�� 1 State Of California ss: CRY of Palm Dom 101" County of Riverside ' � le. sEP os 2017 = '­4 a Advertiser: CITY OF PALM DESERT W � 73510 FRED WARING DR CommunhyDevsiopmillint to *" PALM DESERT , CA 92260 Order# 0002339128 1 am over the age of 18 years old, a citizen of the United States and not a party to, or have interest in this matter. I hereby certify that the attached advertisement appeared in said NO 1138: CITY OF PALM DESERT LEGAL NOTICE newspaper(set in type not smaller than non CASE NO.ZOA 17-027 pariel)in each and entire issue of said NOTICE OF INTENT OF THE PALM DESERT CITY COUNCIL TO ADOPT A ZONING AMENDMnewspaper and not in any supplement thereof 225.34.120CECANNABIS U EMEAND GREGULATIONS PALM DESERTCODE SECTIONS AL SECTION 25.16 on the following dates, t0 wit: COMMERCIAL AND INDUSTRIAL DISTRICTS AND 25.18 DOWNTOWN DISTRICTS g TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY,SUBJECT TO A CONDI- TIONAL USE PERMIT Newspaper: The Desert Sun The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act(CEQA), has determined that this Zoning Ordinance Amendment(ZOA)is exempt from CEQA review pursuant to Section 8/12/2017 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment,and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. On August 1, 2017, the Palm Desert Planning Commission adopted a Notice of Exemption in accordance with CEQA. I acknowledge that I am a principal clerk of the Project Location:City-wide printer of The Desert Sun, printed and Code Amendment Description: published weekly in the City of Palm Springs, Section 25.34.120 will be retitled to Cannabis Use and Regulations to reflect the allowance of both medicinal and adult use of cannabis in accordance with the County of Riverside, State of California. The Medicinal and Adult-Use Cannabis Regulations and Safety Act(MAUCRSA) ap- proved by the State of California.The City's Ordinance will allow for retail can- Desert Sun was adjudicated a Newspaper of nabis uses within the City's commercially zoned properties,testing and research prop- general circulation on March 24, 1988 b the facilities within the City's Service Industrial and Office Professional zoned prop- 9 y erties; and cultivation, manufacturing, distribution, and delivery in the City's Superior Court of the County of Riverside, Service Industrial zones.All cannabis related businesses will be subject to a sep- aration requirement of 1,500 feet from other cannabis related businesses,and State of California Case No. 191236. review and approval of a Conditional Use Permit (CUP). Cannabis businesses must also meet State guidelines imposed by the Bureau of Medicinal Cannabis Regulations and are subject to State licensing requirements. Planning Commission Recommendation:The City of Palm Desert Planning Com- mission reviewed Case No.ZOA 17-027 at their meeting on August 1,2017. The Planning Commission voted in favor(3-1-1)recommending approval of the ZOA to the City Council. I declare under penalty of perjury that the Recommendation:Staff is recommending that the City Council adopt an ordi- nance amending the Zoning Ordinance to establish cannabis regulations and al- 9 9 low for cannabis businesses within the City. this 12th day,ef -AUGUST, 2017 In Palm Public Hearing:The public hearing will be held before the City Council on Au- Springs, Cal�b`rnia. gust 24,2017,at 4:00 pm. / Comment Period: Based on the time limits defined by CEQA, your response / should be sent at the earliest possible date.The public comment period for this project is from August 14,2017 to August 24,2017. Public Review:The ZOA is available for public review daily at City Hall. Please submit written comments to the Community Development Department. If any group challenges the action in court,the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at,or prior to,the City Council hearing.All comments and any questions should be directed to: Eric Ceja,Principal Planner City of Palm Desert eclaran 73-510 Fred Waring Drive Palm Desert,CA 92260 (760)346-0611 ecejaec ityof pa I mdesert.org RACHELLE D.KLASSEN,CITY CLERK CITY OF PALM DESERT,CALIFORNIA Published:8/12/2017 1 /,� CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: DIRECT STAFF TO INITIATE A ZONING ORDINANCE AMENDMENT TO ESTABLISH MARIJUANA RELATED LAND USE STANDARDS IN ACCORDANCE WITH THE ADULT USE OF MARIJUANA ACT AND OTHER STATE ADOPTED MARIJUANA RELATED LAWS SUBMITTED BY: Eric Ceja, Principal Planner DATE: January 26, 2017 CONTENTS: Adult Use of Marijuana Act— Fact Sheet League of California Cities —Adult Use of Marijuana Act FAQs Recommendation By Minute Motion: That the City Council direct staff to initiate a Zoning Ordinance Amendment to establish marijuana land use standards in accordance with the Adult Use of Marijuana Act (AUMA) and other State adopted marijuana related laws. Background On November 8, 2016, California voters approved Proposition 64 — the Adult Use of Marijuana Act (AUMA). This proposition allows adults over the age of 21 to use marijuana for recreational purposes under certain conditions. The AUMA also permits residents to grow up to six plants on their property and allows local jurisdictions to retain local control and establish individual land use restrictions. In February 2016, the City Council directed staff to establish a "Cannabis Committee" to review criteria for medical marijuana delivery operators. The Committee is comprised of two Councilmembers, a Planning Commissioner, a cannabis delivery operator, a medical doctor, Code Compliance staff, the Sheriff's Department, and Planning Department staff. The Committee met several times during 2016 and ultimately decided not to recommend any land use regulation until voters weighed in on Proposition 64. Since passage of the AUMA the Committee has met once and is recommending that the Council direct staff and the Committee to review and establish new land use regulations related to the AUMA and medical marijuana. Although adult use of marijuana is permitted at this time, commercial operations must receive licensure from the State "Bureau of Marijuana Control" (currently the "Bureau of Medical Cannabis Regulation"). The Bureau has until January 1, 2018 to establish a regulatory and permitting process for commercial licensure; however, the Bureau may issue licenses before 2018. Staff anticipates working quickly to address specific land use and business regulations related to marijuana, but may need to bring additional amendments to the ordinance in this initial year. Below is an anticipate schedule to establish a new ordinance: Staff Report Prop 64— City Cannabis Ordinance Page 2 of 2 January 26, 2017 January 2017: City Council directs staff to initiate ZOA January— March: Work with Cannabis Committee to draft land use standards March 2017: Review ZOA with Planning Commission April 2017: Review ZOA with City Council May 2017: 2nd Reading of ZOA with City Council June 2017: Ordinance effective Due to the changes created by the AUMA, staff is recommending that the City Council initiate a Zoning Ordinance Amendment. Fiscal Impact There is no fiscal impact associated with a City initiated Zoning Ordinance Amendment. The future fiscal impact of taxable retail sales or policing of cannabis is unknown at this time. Submitted By: CITY COUN'CIy 'I`ION APPROVED DENIED Eric Ceja, Princip lanner RECEIVED OTHER MEET ATE �- / �r/)/ AYE k Departmen Head: NOES: # ABSENT: ABSTAIN: ED BY: Ryan Stenae<Director of Community DevebpfUgig on File with City erk's Office Approval- Lauri Aylaian, City Manager November 22. 2016 LEAGUE CITILS Frequently Asked Questions (FAQs) Adult Use of Marijuana Act' Proposition 64 puestion#1: When does the AUMA take effect? Answer: The AUMA took effect November 9,2016,the day after the election. But note, the AUMA requires a state license to engage in commercial nonmedical marijuana activity. Licensing authorities are required to begin issuing licenses by January 1,2018 and the League anticipates that the issuance of licenses will not occur much in advance of January 1.2018.Thus,the AUMA provisions legalizing commercial nonmedical marijuana activity will not become operational until the state begins issuing licenses (likely in late-2017).The AUMA provisions legalizing personal use and cultivation of nonmedical marijuana took effect November 9,2016. Question#2: Can private individuals cultivate nonmedical marijuana at home beginning November 9.2016? Answer: Yes,within a private residence by a person 21 years and older for personal use. The AUMA provides that local governments can reasonably regulate, but cannot ban the personal indoor cultivation of up to six nonmedical marijuana plants per private residence. This includes cultivation in a greenhouse that is on the property of the residence but not physically part of the home,as long as it is fully enclosed,secure, and not visible from a public space. Because this activity is not subject to state licensing requirements, individuals may engage in personal indoor cultivation beginning November 9,2016,unless a city enacts an ordinance imposing a reasonable regulatory scheme that would preclude them from doing so before complying with the city's regulatory requirements. Local governments may regulate or ban all personal outdoor cultivation. However,the AUMA includes language purporting to repeal any ordinance that bans personal outdoor ' Please consult your City Attorney before taking action to implement the ALMA.The answers to these FAQs may he different in your city based upon your municipal code,regulations,and policies.The answers do not constitute legal advice from the League of California Citiese. 1 cultivation upon the California Attorney General's determination that nonmedical use of' marijuana is lawful under federal law. Ouestion 43: Is there a limitation on the number of marijuana plants that can be cultivated %vithin a single residence' Ans-vver: Yes. Not more than six living plants may be planted,cultivated. harves-ted. dried.or processed within a single private residence,or upon the grounds of that private residence.at one time. A "residence" is defined as a house. an apartment unit. a mobile home.or other similar d\%elling. No matter how many persons over 21 years of age are lip ing in a "residence."onl\ 6 living plants ma\ be culti\ated at one time. (Health & Safety§ l I362.2(b)(3).) Ouestion#4: Can a landlord ban the cultivation smoking of marijuana on his or her property? Answer: Yes. An individual or private entity may prohibit or restrict personal possession. smoking.and cultivation of marijuana on the individual's or entiq's privately owned property. A state or local government agency also may prohibit or restrict such activities on property owned. leased,or occupied by the state or local government. (Health& Safety§§ I I362.45(g)and(h).) Question#5: Can a city ban personal indoor cultivation in all leased or multi-unit residences within the city? Answer: No. A city cannot prohibit personal indoor cultivation of marijuana in all leased or multi-unit residences within the city. However,because cities may reasonably regulate personal indoor cultivation.a city might be able to condition permit approval for personal indoor cultivation in a leased residence on the applicant receiving permission from his or her landlord. Ouestion#6: Dues a city's ban on commercial cultivation. personal outdoor cultivation. or retail sales of marijuana or marijuana products make it ineligible for state grant monies for law enforcement, fire protection,or other local programs addressing public health and safety associated with the implementation of Prop 64? Answer: Yes. If a city bans commercial cultivation,or personal outdoor cultivation,or retail sales of marijuana or marijuana products, it is ineligible to receive state grant monies funded through the new state excise taxes that take effect on January 1.2018. (Revenue and Taxation Code$34019(e)(3)(D).) Question#7: What does the AUMA say about possession, transporting,purchasing or giving away of non-medical marijuana? Answer: A person 21 years of age or older may possess,process,transport,purchase or give away to persons 21 years of age or older not more than 28.5 grams of marijuana in the non-concentrated form and not more than 8 grams of marijuana in a concentrated 2 firm including marijuana products. If the AUMA passes, these activities will be lawful under state law and cannot be prohibited under local law. Ouestion#8: Do cities that ban or regulate medical marijuana businesses need to update their ordinances to include nonmedical marijuana? Answer: Yes. The AUMA prohibits state licensing authorities from issuing a license to a commercial nonmedical marijuana business if operation of the business violates a local ordinance of the jurisdiction in which the business will operate. This means that a city wishing to adopt business or land use regulations prohibiting or regulating commercial nonmedical marijuana businesses must adopt an ordinance prior to the date the state begins issuing licenses, which the League anticipates will be in late 2017.' Ouestion#9: Can cities be confident that a permissive zoning code,by itself.. provides sufficient protection against nonmedical marijuana businesses setting up shop without local approval? Answer: No. It is unlikely that cities will succeed in arguing that nonmedical marijuana land uses are prohibited by permissive zoning codes under the AUMA, because the AUMA does not contain the same protective language as the MMRSA with respect to permissive zoning. Therefore.cities that %,i.,ish to ban all or some nonmedical marijuana activities should adopt express prohibitions,even if they operate under a permissive zoning code. Question#10: Are cities at risk of losing the opportunity to impose bans on personal outdoor cultivation if they don't act until after the November election? Answer: No. A city may adopt an ordinance banning or regulating personal outdoor cultivation at any time. Ouestion#11: Are cities at risk of losing the opportunity to impose bans on nonmedical marijuana businesses, if they don't act until after the November election? Answer: No. However, if a city does not adopt an ordinance expressly banning or regulating nonmedical marijuana businesses before the state begins issuing state licenses nonmedical businesses, a state-licensed nonmedical marijuana business will be able to operate within its jurisdiction without local permission or permitting.This is due to a provision in the AUMA that provides that state licenses cannot be issued where the activity would violate a local ordinance.Ifa jurisdiction has no ordinance regulating nonmedical marijuana businesses, then the local regulatory scheme is silent on that type of activity,and the state can unilaterally issue a license under terms fully compliant with the AUMA. Cities may adopt an ordinance expressly banning or regulating such operations after the state begins to issue licenses,but it will be difficult to terminate the state licensee's operations until the state license is up for renewal. Therefore, the best practice is to adopt an ordinance before the state begins issuing state licenses. Please see Question#8 regarding the use of public roads for transportation and delivery. 3 . e Question 412: Can cities ban deliveries under the AUMA? Answer: Yes. Cities can ban deliveries within their territorial limits. However,cities cannot prevent the use of public roads for the delivery of marijuana. For example, if a licensed delivery company located in City A must travel on public roads through City B to make an authorized-delivery in City C, City B cannot prohibit the licensed delivery company from travelling on public roads in City B to get to City C. In addition,cities may not prevent the use ol'public roads within its jurisdiction to transport nonmedical marijuana. Ouestion#13: What is the best way for cities to notify the state licensing agencies of their local ordinances that regulate and!or prohibit commercial non-medical marijuana activities within their jurisdictions? Ans"er, Unless the state licensing agencies indicate otherwise.cities should mail copies of their local ordinances that regulate or prohibit commercial nonmedical marijuana activities within their jurisdictions to the Department of Consumer Affairs,the Department of Food and Agriculture,and the Department of Public Health. Cities should regularly check each Department's website to ensure that this practice complies with any regulations the Departments may pass regarding notice of local ordinances. In addition. Cities should ensure that any updates or amendments to local ordinances that regulate or prohibit commercial nonmedical marijuana activities are promptly submitted to each Department. 4 Adult Use of Madivana Act — Fact Sheet The Adult Use of Marijuana Act (AUMA) was approved by California voters on November 8, 2016, and goes into effect November 9, 2016. The AUMA allows for adult recreational use of marijuana in the City of Palm Desert as described below. Personal Adult Use/Cultivation Applies to any adult age 21 or over. Any adult may generally: 1. Smoke or ingest marijuana or marijuana products in a private home or at a business licensed for on-site marijuana consumption. 2. Possess, process, transport, purchase or give away to other adults up to 28.5 grams (1 ounce) of marijuana in non-concentrated form up to eight(8)grams of marijuana in concentrated form. 3. Possess, plant, cultivate, harvest, dry, or process up to six (6) living marijuana plants for personal use within a private home, as long as the area is locked and not visible from a public place. Smoking marijuana is prohibited in the following circumstances 1. In any public place. 2. Where tobacco is prohibited or as stipulated in the Palm Desert Municipal Code (PDMC) Chapter 8.36. 3. Within 1,000 feet of a school, day care center, or youth center when children are present. 4. While driving, or riding in the passenger seat of, any vehicle used for transportation. No one may possess marijuana or marijuana products in the following circumstances: 1. On school grounds, in day care centers, or in youth centers while children are present. 2. In an open container while driving, operating, or riding in any vehicle used for transportation. 3. The City of Palm Desert may choose to ban all outdoor marijuana cultivation for recreational use and/or reasonably regulate indoor cultivation. Commercial Cultivation & Sale : No business may sell marijuana for recreational use until that business acquires a state license. State licenses will likely not be issued until January 2018. The City of Palm Desert may enact a ban on, or regulations related to, nonmedical marijuana businesses. Palm Desert may relax ban on marijuana businesses Shern,Barkas,The Desert Sun Published 8:16 p.m.PT.Ian.26,2017 I Updated 2:46 p.m.PT Jan.27.2017 w IL' Palm Desert appears to be on a path toward lifting a long-existing ban on marijuana dispensaries as a result ;• , of California's new law allowing recreational mai0h'a 46NL an one 21 and older. � ,• �?, DIGITAL ACCESS FOR O $1�/MONTH ,,,.,5,U aS�A w City Council, on Thursday,directed staff to b eB4,,$tPd�TbIAWrt's zoning ordinance p. p) that will allow commercial sales of marijuan GPS- oSOURCE=BENBARJANUARY&UTM-MEDIUM=OVERLAY&UTM-SOURCE=BOUP EXCHANGE&UTM-CAMPAIGN=1999NBAR&UTM-CONTENT=NANO BAR) The diiection was unaninicus and without discussion, but followed a 40-ininute study session ealliel in the (Photo:Christopher Furlong/Getty afternoon during which council members learned more about cannabis regulation in the wake of the Nov.8 Images file photo) passage of Proposition 64 or the Adult Use of Marijuana Act(AUMA)by California voters. Portions of AUMA took effect on Nov.9, legalizing recreational pot usage by anyone over 21. It also allows a person to grow up to six plants at home. By Jan. 1,2018,the state will begin issuing licenses for commercial marijuana businesses and cities need to have their own regulations in place before then,said Eric Ceja, Palm Desert's principal planner. DELIVERY: Palm Desert council changes stance on not delivery(/story/news/local/palm-desert/2016/01/15/palm-desert-medical-mariivana- distribution/78842406/) Palm Desert can either widen its current ban on medical marijuana dispensaries to include commercial sales of recreational marijuana or allow all dispensaries. The state is expecting$1 billion in excise tax revenue from the sale of marijuana in the first year of legalization alone, Community Development Director Ryan Stendell said. Some of that money would be disbursed to cities in the form of grants for educational, public safety and other marijuana-related programs. Cities that ban commercial sales, however,won't be eligible for the funds, Mayor Jan Harnik said. Last year,an ad hoc cannabis committee, comprised of Harnik, Councilwoman Susan Marie Weber, city staff,a doctor and two medical marijuana delivery operators,was formed to look at regulating the delivery of medical marijuana in the city. it will now participate in drafting the ordinance amendments. "Regulation of the businesses and community safety are the two key concerns,"said Harnik. BANKS: Pot businesses pay taxes, but don't have bank accounts (/story/money/business/2017/01/23/marijuana-ban kin g-taxes-California/96217120/) The plan would be to treat the dispensaries similar to liquor stores, not allowing clusters of dispensaries in any one area of the city, she said. The goal is to have an ordinance in place by June—well before the state starts issuing licenses,Ceja said. He created a timeline in which the committee is expected to draft zone ordinance amendments for presentation to the Planning Commission in March. It would go to the City Council for review in April and come back for a second vote in May,going into effect in June. The Planning Commission and City Council would hold public hearings. City spokesman David Hermann told the counci ge will be created on the city's website where re,, s will be updated on committee meetings and any other news pertaining to marijuana. A year ago, the City Council was ready to adopt an ordinance banning the delivery of medical marijuana in Palm Desert but changed its mind. It formed the"cannabis committee"which decided early on it should await the outcome of AUMA before making any recommendations. It resumed meeting after the Nov.8 election. Palm Desert, Rancho Mirage, Indian Wells, La Quinta, Indio and Coachella are the only Coachella Valley cities that still ban dispensaries—for medicinal or recreational marijuana.Coachella, however,does allow growing(/story/news/local/coachella/2016/07/27/citing-likely-prop-64-passage- coachella-buts-Dot-tax-ballot/87624034/)and manufacturing of cannabis. ADVERTISEMENT Palm Springs was the first city in the valley to allow medical marijuana dispensaries and Cathedral City soon followed as did Desert Hot Springs,which also allows grow and manufacturing facilities.The three cities have also levied sales taxe!�)ppli pT Po,adding millions to their general funds. DIGITAL ACCESS FOR ONLY $10/MONTH The state has a 15 percent excise tax and cities can establish a separate tax in additionsUBSCRIBE NOW (HTTP://OFFERS.DESERTSUN.COM/SPECIALOFFER? GPS- hh But Harnik on Thursday said Palm Desert has stood firm that it will not tax medicationE7cCFI,aN &A CAMtra1'Gp 9f�BARffiUM7 9Pfi= sour but not that being used for medicinal purposes. In December, Indian Wells City Council passed an ordinance reiterating its ban and requiring a$141 annual permit to grow the legally allowed six plants in any home in the city.To get that permit, residents are required to allow a home inspection by city employees to determine that no more than the maximum six plans are being grown. PERMIT NEEDED: Indian Wells requires permit to grow pot(/story/news/local/indian-wells/2016/12/16/indian-wells-requiring-indoor-mari'uana- cultivation-perm it/95520452/) The ordinance may be the most stringent regulation passed statewide, Paul Armentano,deputy director for the Washington, D.C.-based NORML Foundation,a nonprofit lobbying for reform in marijuana laws. To date, no other Coachella Valley cities have proposed similar mandates. Right after AUMA passed,the Rancho Mirage City Council amended its ban(/story/news/local/rancho-mirage/2016/11/17/rancho-mirage-city-council- strengthens-ban-on-marijuana-dispensary-cultivation/94027302/)on dispensaries to include recreational marijuana. La Quinta City Council(/story/news/local/la-quinta/2015/12/16/la-quinta-medical-marijuana-ordinance/77373204/)also appointed a cannabis ad hoc committee about a year ago to explore options for regulated delivery of medical marijuana, but has not yet revisited the issue since AUMA passed. Indio,which currently bans all forms of marijuana within its city limits, has an ad hoc committee researching the affects of AUMA and how the city should respond. Desert Sun reporter Sherry Barkas covers the cities of La Quinta, Indian Wells, Rancho Mirage and Palm Desert. She can be reached at sherry.barkas@thedesertsun.com or(760) 778-4694. Follow her on Twitter @TDSsherry Read or Share this story: http://desert.sn/2jDriuR Get$800 when you Y switch four lines today. ,m ' 9 Data Talk Text `�" switc�tltIow r.rx�.«u�,�,.:��•r,,, CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Telephone: 760-346-0611 Cannabis Committee Meeting December 15, 2016 I. Reintroduction of Cannabis Committee Member II. Proposition 64 — Adult Use of Marijuana Act (AUMA) a. Staff Research and Information a. 6 plants b. Indoor vs. Outdoor c. No SELLING d. Medical Uses e. *** 2018 *** b. Recommendations from Staff a. Review from BBK & League of CA Cities b. Separate and address i. Medical ii. Personal iii. Commercial c. Review existing City Ordinance for amendments d. Propose new ordinance under separate title in both Zoning and Business License c. Recommendation to City Council Marijuana License Types Under the MMRSA (AB 266) - Regulated and Issued by Department of Consumer Affairs/ Bureau of Marijuana Control License Types Defined IlPros icons Type 1 = Cultivation; Specialty outdoor; Small. Any activity involving the planting, growing, harvesting, drying,curing,grading, or trimming of cannabis. /�� `_ S b Type 1A = Cultivation; Specialty indoor; Small. A facility where medical cannabis is planted, grown, harvested, dried, cured,graded, or trimmed,or that does all or an ( ) YP P Y 9 Y •D, ,,,� lnc'Ve rco•,se combination of those activities,that holds a valid state license pursuant to this chapter, and that holds a valid local license or permit. (c)Type 113 = Cultivation; Specialty mixed-light; Small. For cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of less than or equal to 5,000 square feet of total canopy size on one premises. (d)Type 2 = Cultivation; Outdoor; Small. For outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size 11 on one premises. S rd� $eSSte (e)Type 2A= Cultivation; Indoor; Small. For indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive,of total canopy size on one premises. (f)Type 2B = Cultivation; Mixed-light; Small. For cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one ^e+- premises. l (g)Type 3 = Cultivation; Outdoor; Medium. For outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on +-- one premises.The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (h)Type 3A = Cultivation; Indoor; Medium. For indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises.The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (i)Type 3B = Cultivation; Mixed-light; Medium. For cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises.The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (j)Type 4 = Cultivation; Nursery. A licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the L Ti,->pN " planting, propagation, and cultivation of medical cannabis. 1 (k)Type 6 = Manufacturer 1. Manufacturing sites that produce medical cannabis products using nonvolatile solvents. A person that conducts the production, preparation, propagation, or compounding of manufactured medical cannabis, as described in subdivision (ae), or medical cannabis products either directly or indirectly or by extraction methods,or independently by means of chemical synthesis or by a combinat:on of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or medical cannabis products or labels or relabels its container, that holds a valid state license pursuant to this chapter, and tha, holds a valid local license or permit. (1)Type 7 = Manufacturer 2. Manufacturing sites that produce medical cannabis products using volatile solvents.The State Department of Public Health shall limit the number of licenses of this type. (m)Type 8 =Testing. A facility, entity, or site in the state 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 from al,other persons involved in the medical cannabis industry in the state. 2) Registered with the State Department of Public Health. -(n)Type 10 = Dispensary; General. A facility where medical Cannabis, medical Cannabis products, or devices for the use of medical Cannabis or medical cannabis products are offered, either individually or in any comb nation,for retail sale, including an establishment that delivers, pursuant to express authorization by local ordinance, medical cannabis and medical cannabis products as part of a retail sale. - (o)Type 10A = Dispensary; No more than three retail sites. A facility where medical 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 that delivers, pursuant to express authorization by local ordinance, medical cannabis and medical cannabis products as part of a retail sale (p)Type 11 = Distribution. The procurement, sale, and transport of medical cannabis and medical cannabis products between entities licensed pursuant to this chapter. (q)Type 12 =Transporter. A person issued a state license by the bureau to transport medical cannabis or medical cannabis products in an amount above a threshold determined by the bureau between facilities that have been issued a state license pursuant to this chapter. i i The 117-18 Budge The Governor's Cannabis Proposals f � r wz- I w• � �� ..�' .ice _" • '!•. �.1� 1N Wore 7-0 1 • i 2017-18 BUDGET EXECUTIVE SUMMARY Regulation of Cannabis Has Been Evolving Proposition 215 Legalized Medical Cannabis.In 1996,voters approved Proposition 215,which legalized the use of medical cannabis in California.However,the measure did not create a statutory framework for regulating or taxing it at the state or local level.In 2015,the Legislature passed the Medical Cannabis Regulation and Safety Act(MCRSA) to provide a statutory framework for the state to regulate medical cannabis.MCRSA(as amended by the 2016-17 budget package)requires specified state agencies—including the Department of Consumer Affairs(DCA),Department of Public Health(DPH),and California Department of Food and Agriculture(CDFA)—to regulate and license the medical cannabis industry. Proposition 64 Legalized Nonmedical Cannabis 20 Years Later. In November 2016,voters approved Proposition 64,which legalizes the nonmedical use of cannabis.Proposition 64 also creates a statutory framework for the state to regulate nonmedical cannabis.Specifically,the measure requires state agencies to regulate and license the nonmedical cannabis industry and gives the agencies responsibilities similar to those established under MCRSA for medical cannabis. Proposition 64 also includes taxation provisions for both medical and nonmedical cannabis to be administered by the Board of Equalization(BOE). Governor's Budget Proposal Budget Includes$51 Million for Implementation Activities in 2017-18.The Governor's budget proposes a total augmentation of$51.4 million in 2017-18 across four departments(DCA,DPH, CDFA,and BOE)and about 190 positions across these departments to implement MCRSA and Proposition 64.The budget-year funding would mainly support(1)licensing and enforcement programs in DCA and CDFA, (2)development and implementation of licensing and"track and trace"information technology(IT)systems,and(3)tax administration activities in BOE.The budget also proposes a General Fund loan of up to$62.7 million in 2017-18 to help fund these activities.Furthermore,the administration's budget proposal includes funding and positions in future years,with funding decreasing to$32.1 million and staffing increasing to 219 positions in 2020-21 and ongoing. Governor Will Propose Bill to Align MCRSA and Proposition 64.While there are many similarities between the statutory frameworks of MCRSA and Proposition 64,there are also some key differences between the laws.The administration indicates it plans to propose budget trailer legislation that will align MCRSA and Proposition 64.At the time this analysis was prepared,the administration had not provided the Legislature with a draft of its proposed statutory changes. LAO Assessment The Legislature will face an important policy choice regarding the degree to which it wants to align the statutory frameworks of MCRSA and Proposition 64.We believe that it makes sense to www.lao.ca.gov Legislative Analyst's Office 3 i 2017-18 BUDGET align the state's regulations.The Legislature's authority to amend regulatory structures depends on the nature of the changes the Legislature proposes to make.While the Legislature has significant authority to amend the regulatory structures for medical and nonmedical cannabis,its authority to modify MCRSA is broader than for Proposition 64.We note that decisions about this statutory alignment will be important in determining the level of staffing and other resources needed to implement the two measures. We find that there is significant uncertainty regarding the resource needs for departments to regulate and tax medical and nonmedical cannabis.This lack of clarity stems from various factors including uncertainty regarding(1)the specific details of future regulations, (2) the number of applicants that will seek licenses from the state and the associated workload, (3)the ongoing costs for new IT systems,(4)when departments will be able to fully implement licensing programs,and (5)the future federal stance towards states legalizing cannabis use.We also find that the General Fund loan is larger than necessary to cover proposed expenditures and maintain a reasonable fund balance. LAO Recommendations We recommend the Legislature work with the administration to enact legislation to align the regulation of medial and nonmedical cannabis to the maximum extent possible.We further recommend that the Legislature make its decisions on the extent to which it wants to align the regulatory structures for medical and nonmedical cannabis before making its decisions on the Governor's requested funding and related positions.Doing so could better enable the Legislature to provide funding and staffing levels consistent with the ultimate regulatory structure. In addition,given the high level of uncertainty regarding the resource needs that will be required in the future to regulate cannabis,we recommend taking a more incremental approach to budgeting for departments that are requesting resources in 2017-18.Under our proposed approach,the Legislature would fully fund departments'budget requests in 2017-18,but in some cases less funding would be provided in subsequent years.This incremental approach would allow the Legislature to re-evaluate resources as part of the 2018-19 budget process when additional information is available on actual workload. (To the extent that the Legislature enacts legislation to align MCRSA and Proposition 64,our recommended funding levels may need to be revised.)Once the Legislature determines its preferred level of funding for 2017-18,we recommend it tailor the size of the General Fund loan to meet those needs,without providing a bigger than necessary loan.We also recommend the Legislature require an annual report on implementation and outcomes.This type of report would both facilitate legislative oversight and help inform subsequent decisions for how best to implement future stages of the cannabis regulatory system. 4 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET INTRODUCTION While voters legalized the use of medical various agencies charged with regulating and cannabis in California in 1996,the state did not taxing the cannabis industry. create a regulatory framework for medical cannabis This report is intended to help guide the until the Legislature approved the Medical Legislature through these important decisions. Cannabis Regulation and Safety Act(MCRSA) We begin by providing background information in 2015.Prior to the act,most regulation of on MCRSA,Proposition 64,and the funding medical cannabis was left to local governments.In that the Legislature provided in 2016-17 to begin November of 2016,voters approved Proposition 64, implementation of MCRSA.Next,we summarize which legalized and created a regulatory framework the Governor's 2017-18 budget proposals for for the nonmedical use of cannabis. four regulatory agencies with responsibility In the coming year,the Legislature will face key over cannabis.Finally,we assess the Governor's choices about whether it wants to make statutory proposals and provide recommendations to the changes to bring the regulatory frameworks of Legislature as it faces these key decisions about MCRSA and Proposition 64 into greater alignment. implementing a regulatory structure for medical Additionally,the Legislature will need to determine and nonmedical cannabis. the staff and other resources to provide to the BACKGROUND Regulation of Medical Cannabis and Chapter 719 [SB 643,McGuire])—known Proposition 215 Legalized Medical Cannabis. collectively as MCRSA—to provide a statutory In 1996,voters approved Proposition 215,which framework for the state to regulate medical cannabis. legalized the use of medical cannabis in California. As shown in Figure 1 (see next page),MCRSA However,the measure did not create a statutory (as amended by the 2016-17 budget package) framework for regulating or taxing it at the state requires specified state agencies to regulate the or local level. For most of the past two decades, medical cannabis industry.For example,it gives medical cannabis has mainly been regulated and the(1)Department of Consumer Affairs(DCA) taxed by local governments through ordinances the authority to license distributors,transporters, and permit requirements.While the state largely dispensaries,and testing laboratories;(2)California did not regulate medical cannabis,it did collect Department of Food and Agriculture(CDFA)the sales tax on these products.Local jurisdictions authority to license cultivators;and(3)Department throughout the state have imposed restrictions on of Public Health(DPH)the authority to license the cultivation and sale of medical cannabis or in manufacturers of cannabis-related products(such some cases banned it entirely. as baked goods).(As we discuss later,the 2016-17 MCRSA Created the Regulatory Framework budget package transferred oversight over medical cannabis testing laboratories from DPH to DCA.) for Medical Cannabis.In 2015,the Legislature g passed three state laws(Chapter 688 [AB 243, MCRSA established a target date of January 1,2018 Wood],Chapter 689 [AB 266,Bonta], for accepting license applications. www.lao.ca.gov Legislative Analyst's Office 5 2017-18 BUDGET Figure 1 Medical Cannabis Industry to Be Regulated by Multiple State Agencies Under MCRSA Department of Consumer Affairs(DCA) • License distributors,transporters,dispensaries,and testing laboratories.a Department of Food and Agriculture • License cultivators. • Implement track and trace information technology system. Department of Public Health (DPH) • License manufacturers. Department of Fish and Wildlife • Monitor and reduce environmental impacts of cultivation. State Water Resources Control Board • Regulate water-related impacts of cultivation. Department of Pesticide Regulation • Develop pesticide use guidelines for cultivation. a Responsibility for medical cannabis testing laboratories was transferred from DPH to DCA pursuant to Chapter 32 of 2016(SB 837,Committee on Budget and Fiscal Review). MCRSA=Medical Cannabis Regulation and Safety Act. Regulatory agencies are also required to set development of licensing IT projects and for CDFA's standards for the labelling,quality testing,and track and trace project.Third,the budget included packaging of medical cannabis products.MCRSA resources for the Department of Fish and Wildlife further requires the establishment of an information and State Water Resources Control Board to reduce technology(IT)system that uniquely identifies the environmental impacts of cannabis cultivation— cannabis plants and enables licensing authorities such as on water quality and instream flows needed to track cannabis through the distribution chain for fish spawning and migration.Fourth,the budget (commonly referred to as"track and trace"). included an additional loan of$19 million(in X Additionally,MCRSA authorizes state departments addition to the$10 million authorized in MCRSA) to establish licensing fees to cover regulatory costs. from the General Fund to the MCF to cover costs These fees are to be deposited into a new state associated with implementing MCRSA.(The fund,the Marijuana Control Fund(MCF).MCRSA Governor's 2017-18 budget assumes an additional F authorizes a$10 million loan from the General Fund $11.5 million loan in the current year to implement to the MCF to pay for initial activities associated CDFA's IT projects.) with implementing the legislation. The 2016-17 budget package also included 2016-17 Budget Provided Resources to legislation—Chapter 32 of 2016 (SB 837,Committee Implement MCRSA.The 2016-17 budget provided on Budget and Fiscal Review)—that made various a total of$33.1 million and 134 positions to six state statutory changes,including shifting authority to departments in 2016-17 to implement MCRSA. license medical cannabis laboratories from DPH to Figure 2 summarizes the various proposals DCA. approved and their out-year effects.First,the budget included funding—primarily for DCA and Legalization and Regulation of DPH—to develop and implement regulations for Nonmedical Cannabis different parts of the medical cannabis industry. Proposition 64 Legalized and Created a Second,the budget included a total of$8 million for Regulatory Framework for Nonmedical Cannabis. DCA($6 million)and CDFA($2 million)to begin In November of 2016,voters approved Proposition 64, 6 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET which legalizes the nonmedical use of cannabis. dispensaries),and a new license category Under Proposition 64,adults 21 years of age or called microbusinesses. (Microbusinesses older can legally grow,possess,and use cannabis for can engage in cultivation of less nonmedical purposes,with certain restrictions. than 10,000 square feet,distribution, Proposition 64 also creates a statutory manufacturing,and retailing.) framework for the state to regulate nonmedical cannabis.Specifically,the measure requires state • Expands CDFA's track and trace IT system agencies to regulate and license the nonmedical developed under MCRSA to include cannabis industry and gives them responsibilities cannabis for nonmedical use. similar to those established under MCRSA for . Requires each licensing agency to charge medical cannabis.For example,for nonmedical fees to cover its regulatory costs for cannabis,the measure: nonmedical cannabis. • Authorizes CDFA to license cultivators. • Requires licensing agencies to begin issuing • Charges DPH with licensing testing licenses by January 1,2018. laboratories and manufacturers,consistent Local Jurisdictions May Pass Ordinances to with MCRSA as originally adopted. Regulate Nonmedical Cannabis. Proposition 64 • Authorizes DCA to license distributors, states that the measure is not intended to limit the retailers(similar to medical cannabis authority of local jurisdictions to adopt and enforce Figure 2 Summary of Previously Authorized Funding and Positions for MCRSA Implementation (Dollars in Millions) Funding Authorized 2018-19 and Department 2015-16 2016-17 2017-18 ongoing Consumer Affairs $1.6 $9.7 $4.0 $0.5 Food and Agriculture 3.3 5.4 3.4 3.4 Public Health 0.5 3.9 2.5 5.7 Fish and Wildlife - 7.7 5.8 5.8 State Water Resources Control Board - 5.7 6.7 5.7 Pesticide Regulation - 0.7 0.7 0.7 Totals $5.3 $33.1 $23.1 $21.7 Positions Authorized Consumer Affairs 9.7 33.0 33.0 33.0 Food and Agriculture 5.5 18.0 18.0 18.0 Public Health 6.0 14.0 16.0 37.0 Fish and Wildlife - 31.0 31.0 31.0 State Water Resources Control Board - 35.0 35.0 35.0 Pesticide Regulation - 3.0 3.0 3.0 Totals 21.2 134.0 136.0 157.0 MCRSA=Medical Cannabis Regulation and Safety Act. www.lao.ca.gov Legislative Analyst's Office 7 2017-18 BUDGET their own local ordinances to regulate nonmedical MCRSA and Proposition 64 Contain cannabis businesses.This could include through Some Differing Regulatory Requirements local zoning and land use requirements,business Proposition 64 Statutory Framework Mirrors license requirements,and other requirements. MCRSA in Many Areas.In many areas,the Proposition 64 Sets Up Framework for statutory framework established by Proposition 64 Taxation.Proposition 64 includes taxation mirrors the one established by MCRSA to regulate provisions for both medical and nonmedical medical cannabis.For example,as mentioned cannabis to be administered by the Board of above,the measure gives state agencies similar roles Equalization(BOE).Specifically,Proposition 64 to those assigned by MCRSA.Additionally,some imposes new excise taxes on(1)each ounce of the licenses established under Proposition 64— of cannabis grown and(2)the retail price of such as those for small-and medium-size cannabis products sold.Additionally,the sale cultivators—are identical to the licenses established of medical cannabis,which had been subject under MCRSA in terms of size limitations. to sales tax,is specifically exempted from part Some Key Differences Between MCRSA and of that tax under Proposition 64.(Based on an Proposition 64.While there are many similarities alternative interpretation of this provision,BOE between the statutory frameworks of MCRSA has implemented a full sales tax exemption.)The and Proposition 64,there are also some key measure does not change local governments' differences between the laws.For example,there existing ability to place other taxes on medical are some differences between the types of licenses cannabis.Nor does it restrict their ability to tax they establish.Notably,Proposition 64 allows nonmedical cannabis. cultivation license types that permit cannabis Revenues collected from the new state excise grows(beginning January 1,2023)larger than is taxes will be deposited in a new state fund,the allowable under MCRSA.As previously mentioned, California Marijuana Tax Fund.Certain fines on Proposition 64 also creates the microbusiness businesses or individuals who violate regulations license type. created under the measure will also be deposited Another key difference is in the degree to into this fund.Monies in the fund will first be which entities can control multiple steps in the used to pay back certain state agencies for any cultivation,distribution,and retail chain.For cannabis regulatory costs not covered by license example,MCRSA generally limits a medical fees.A portion of the monies will then be allocated cannabis licensee to holding state licenses for specified purposes,such as for substance use in no more than two categories.In contrast, disorder treatment and education. Proposition 64 generally allows a licensee to hold Proposition 64 Authorizes Additional General licenses in more categories.Additionally,while Fund Loans.The measure authorizes General Fund both MCRSA and Proposition 64 have distributor loans of(1)up to$30 million to the MCF for initial license categories,distributor licensees under regulatory costs and(2)$5 million in 2016-17 for MCRSA generally are required to be independent the Department of Health Care Services to provide entities that do not hold licenses in other license a public information campaign about the dangers categories.In contrast,under Proposition 64, of driving under the influence of cannabis and distributors generally can hold licenses in other the repercussions of cannabis use by minors and license categories. pregnant women. 8 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET Some Changes to Proposition 64 Could recent years,the U.S.Department of Justice has Require Voter Approval. Proposition 64 allows chosen not to prosecute most cannabis users and for modifications to the framework of nonmedical businesses that follow state and local cannabis laws cannabis regulation by a majority vote of the if those laws are consistent with federal priorities, Legislature. (Modifications to Proposition 64's such as preventing cannabis from being taken to framework for nonregulatory issues,such as other states.However,this federal policy could taxation and criminal offenses,require a two-thirds change in the future,which might affect the state's vote of the Legislature.)Under the measure,any ability to effectively implement regulations on legislative changes must be consistent with the cannabis.Additionally,because possession or use proposition's stated intent and further its purposes. of cannabis is illegal under federal law,cannabis In some cases,it may be unclear whether a future cultivators,manufacturers,and retailers and change to Proposition 64 would meet this criterion dispensaries typically do not have the same access and,therefore,could be enacted by the Legislature to federally regulated financial services,such as or would require voter approval. banking,that other businesses have.Accordingly, cannabis businesses often rely heavily on cash Cannabis Continues to Be transactions for their operations. Illegal Under Federal Law Under federal law,it is illegal to possess or use cannabis,including for medical use.In GOVERNOR'S PROPOSALS Proposes$51 Million in Figure 3 2017-18 for Four Summary of Governor's 2017-18 Budget Proposals for Departments Cannabis Implementation As shown in Figure 3, (Dollars in Millions) the Governor's budget 2020-21 and proposes a total of Department 2017-18 2018-19 2019-20 After $51.4 million from MCF Consumer Affairs $22.5 $30.9 $30.4 $30.2 in 2017-18 across four Food and Agriculture 22.4 16.1 16.1 0.0 Board of Equalizationa 5.4 2.7 2.1 2.0 departments:DCA,DPH, Public Health 1.0 0.1 -0.2 -0.2 CDFA,and BOE.The Totals $51.4 $49.8 $48.4 $32.1 budget also requests about Positions 190 positions in 2017-18 2020-21 and across these departments. Department 2017-18 2018-19 2019-20 After Figure 3 also shows how Consumer Affairs 120.0 188.0 205.0 205.0 these funding and position Food and Agriculture 50.8 60.0 60.0 0.0 Board of Equalizationa 22.0 21.3 17.4 16.9 levels are proposed to Public Health -3.0 -3.0 -3.0 -3.0 change over the next Totals 189.8 266.3 279.4 218.9 couple of years.We discuss a Budget proposal also identified$1.1 million and 1.9 positions for the Board of Equalization in 2016-17. www.lao.ca.gov Legislative Analyst's Office 9 2017-18 BUDGET the proposals for each of these four departments in continue to implement statutory requirements for more detail below. cannabis cultivation licensing.This amount would DCA's Proposal Funds Licensing, decrease to$16.1 million in 2018-19 and expire after Enforcement, and IT($22.5 Million).As shown 2019-20.The funding would support the following: in Figure 3,the Governor's budget proposes a total • IT Implementation and Ongoing of$22.5 million for DCA in 2017-18,an amount Maintenance($16.9 Million).The budget that would grow to roughly$30 million in out requests$16.9 million and 13 positions years.The budget year funding would support the in 2017-18,decreasing to$10.5 million in following: 2018-19 (expiring after 2019-20)to develop • Licensing and Enforcement and support the cultivator licensing and ($17.4 Million). DCA requests additional track and trace IT projects.(Funding resources for licensing and enforcement includes$15.1 million in 2017-18 and of medical and nonmedical cannabis $8.7 million in 2018-19 and 2019-20 for businesses,including dispensaries/ contracted services for the cultivator retailers,microbu sines ses,distributors, licensing and track and trace systems.) transporters,and testing laboratories. Specifically,the request would support • Licensing and Enforcement($5.5 Million). 120 staff,relocation to a new headquarters The budget requests three-year office for DCA's Bureau of Marijuana limited-term funding of$5.5 million and Control(BMC),laboratory testing,and 34.3 permanent positions(growing to vehicles and equipment.Of these proposed 40 positions in 2018-19)for license and positions,50 are for enforcement,35 are for enforcement activities related to cultivators, licensing,and 35 are for various support as well as one human resources support functions.Out-year funding includes the position. establishment of a total of five field offices . Measurement Standards.The budget by 2019-20. requests 3.5 permanent positions in • IT Implementation and Ongoing 2017-18,growing to 7 permanent positions Maintenance($5.1 Million).DCA also in 2018-19,to enforce standards established requests funding to continue to implement by CDFA to ensure the accuracy of all a licensing and enforcement IT project weighing and measuring devices(such for medical cannabis that was initially as scales)used in connection with the approved in 2016-17,as well as expand the sale or distribution of cannabis.No project to cover its nonmedical cannabis funding is requested because revenues licensees.Funding is proposed to decrease received from weighmaster license and to$3.6 million beginning in 2018-19 registration fees are deposited into a to cover the ongoing operations and continuously appropriated account within maintenance costs of the project. the Agriculture Fund to support these activities. CDFA's Proposal Funds Licensing and Track and Trace($22.4 Million).The Governor's budget BOE's Proposal Funds Tax Administration Activities($5.4 Million).The Governor's budget proposes$22.4 million for CDFA in 2017-18 to 10 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET proposes$5.4 million for BOE in 2017-18, Other Provisions of the Administration's decreasing to$2 million annually beginning Cannabis Proposal in 2020-21,to administer the new excise taxes Anticipate Trailer Bill Language Will Be required under Proposition 64. (The budget also Forthcoming.The administration indicates it assumes BOE spends$1.1 million in the current plans to propose 2017-18 budget trailer legislation year.)The funding would support drafting that will align MCRSA and Proposition 64. regulations;conducting outreach and education; However,at the time this analysis was prepared,the registering taxpayers;and processing payments, administration had not provided the Legislature returns,collections,and appeals.This proposal with a draft of its proposed statutory changes.Nor does not include funding for audits or enforcement, has the administration indicated what specific so it does not reflect the full ongoing cost of changes it proposes to make to bring the two pieces administering the new tax program. of law into greater conformity.One exception to DPH's Proposal Funds IT and Redirects this is that the administration has indicated that Positions to BMC for Licensing of Testing Labs it expects to propose moving the oversight of ($1 Million).The Governor's budget proposes a nonmedical testing laboratories from DPH to DCA, net increase of$1 million for DPH in 2017-18,an so that DCA has exclusive authority over testing amount that would decrease in future years and be laboratories. (This is consistent with the budget a net reduction to its budget of$172,000 beginning proposals discussed above.) in 2019-20.This includes the following changes: Budget Assumes Licensing Revenue but Not • IT Implementation and Ongoing Excise Tax Revenue in 2017-18.The Governor Maintenance($1.4 Million).The projects a total of$11.5 million in revenues to Governor's budget requests funding to the MCF from various license fees in 2017-18.In design,configure,and maintain an IT contrast,the Governor's budget does not project application to process medical cannabis that the state will receive any excise tax revenue manufacturers'licenses.Although DPH in 2017-18. (The administration projects excise will also be responsible for licensing tax revenues to be over$550 million in 2018-19, nonmedical manufacturers,it has not growing to over$950 million in 2021-22.) requested funding to incorporate this Governor Proposes General Fund Loan in responsibility into its IT application at this 2017-18.The Governor's budget includes a General time. Fund loan to the MCF of up to$62.7 million in 2017-18. (The administration's fund condition • Transfer of Testing Laboratories statement for MCF actually shows a higher (-$0.4 Million). DPH also proposes to budget-year loan amount of$78.3 million.) redirect three positions(and$410,000) This amount would be in addition to a total of from DPH to DCA for licensing medical $45.5 million projected to be loaned from the cannabis testing laboratories,consistent General Fund in 2015-16 and 2016-17,including with the transfer of authority over these the loans authorized under MCRSA($10 million), laboratories made in the 2016-17 budget the 2016-17 Budget Act($30.5 million),and package. Proposition 64($5 million). www.lao.ca.gov Legislative Analyst's Office 11 2017-18 BUDGET LAO ASSESSMENT The Legislature will face an important result in state agencies providing more efficient policy choice regarding the degree to which services to licensees by reducing complexity.Even it wants to align the statutory frameworks of with a unified regulatory structure,the Legislature MCRSA and Proposition 64.Decisions about this could still maintain some differences between the statutory alignment will further be important regulation of medical and nonmedical cannabis in determining the level of staffing and other where doing so makes sense.For example,the resources needed to implement the two measures. Legislature could consider whether it wants to However,determining the level of resources allow higher potency limits for medical cannabis. needed in 2017-18 and beyond is complicated by Legislature's Authority to Amend Regulatory the significant uncertainty caused by other issues, Structures Depends on Nature of Changes.As such as the future size of the cannabis industry and described above,the Governor indicates that he potential federal actions.In addition,we find that will propose changes to the regulatory structures the proposed General Fund loan that would be used for MCRSA and Proposition 64 to better align the to fund the initial implementation costs is oversized two systems.Under the California Constitution, based on the current cost estimates proposed by the the Legislature is prohibited from making changes administration. to statutes added by a voter-approved initiative (such as Propositions 215 and 64)unless the Aligning MCRSA and initiative includes provisions specifically allowing Proposition 64 Makes Sense legislative changes.Otherwise,those changes In the 2017-18 budget summary,the Governor would need to be submitted to voters. indicated that as the state moves forward with While both measures provide the Legislature the regulation of both medical and nonmedical with significant authority to amend the regulatory cannabis,one regulatory structure of cannabis structures for medical and nonmedical cannabis, activities across California is needed.Therefore,the its authority to modify MCRSA is broader than administration will provide trailer bill language to for Proposition 64.Because Proposition 215 did align the state's cannabis regulations.The concept not establish a regulatory structure for medical of aligning the state's regulations where feasible cannabis,the Legislature has broad latitude to makes sense.The extent to which the regulatory decide all aspects of how medical cannabis will be structures for medical and nonmedical cannabis regulated without having to submit those changes are aligned would affect the resources necessary for to voters.Thus,the Legislature is not limited by state departments to regulate the cannabis industry. Proposition 215 in enacting changes to MCRSA's Alignment would likely eliminate some duplicative regulatory structure to align it with the provisions regulatory functions,thereby reducing government of Proposition 64. costs to implement and operate the program. In contrast to Proposition 215,Proposition 64 Alignment would also affect the regulated establishes a regulatory structure for nonmedical community.For example,a single regulatory cannabis.However,Proposition 64 also explicitly system could reduce confusion amongst licensees allows the Legislature to amend the measure. regarding regulatory requirements,and it could Under the measure's provisions,changes would 12 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET require a majority vote,a two-thirds vote,or voter to regulate and tax medical and nonmedical approval depending on the nature of the changes. cannabis.This lack of clarity stems from various For example,legislative changes to the regulatory factors,including uncertainty in the(1) regulatory structure for nonmedical cannabis are permitted decisions regarding medical and nonmedical with a majority vote as long as they conform cannabis, (2)number of licensees and associated with the stated intent of the measure.Changes workload related to this market that has not been to the regulatory structure not deemed to be in previously regulated by the state, (3)ongoing conformance with the measure's intent would have needs for funding new IT systems, (4) timing of to be approved by voters. implementation,and(S)federal stance on cannabis. Legislature's Decisions About Aligning Regulatory Decisions Likely to Affect Proposition 64 and MCRSA Will Affect Resource Resource Needs.Various departments—including Needs.The Legislature's ultimate decisions about DCA,DPH,and CDFA—are in the process of aligning the regulatory structures for medical drafting regulations to implement MCRSA and and nonmedical cannabis will affect the level of Proposition 64.These three departments have resources state agencies need to implement their indicated that they anticipate that they will programs.For example,DCA indicates that its IT complete their medical cannabis regulations in the proposal cost estimates are based on current law spring and their nonmedical cannabis regulations with two regulatory systems.It further indicates later in the year. that IT costs could decline if changes in the law Some of the decisions that are made in resulted in a consolidated regulatory framework. the regulations could have implications on Additionally,we expect that the number of entities the level of funding and positions needed to that seek licenses and therefore licensing workload implement the regulations in the future.This is could be affected by the specifics of the regulatory because the regulations will specify what types structure that is ultimately selected.For instance, of information—such as information related to the number of entities seeking distributor licenses criminal history,ownership,or residency—have would likely be affected by whether the regulatory to be provided,reviewed,and verified by the structure generally allows these licenses to be regulating agencies.The more information that is held along with other license types or not.The required will probably result in a greater level of resulting number of licensees would,in turn,have licensing staff needed for these reviews. effects on the level of resources required to regulate Licensing Workload Uncertain Given New those licensees.Once the Legislature makes key Regulatory Program.The state has not regulated decisions about which requirements of MCRSA the medical cannabis industry in the past,and and Proposition 64 to align,it will be in a better nonmedical cannabis has operated on the black position to assess the resource needs of the state market.Therefore,there is a lack of reliable agencies that will be implementing the regulatory information on the current size of the cannabis scheme. industry in California,and tremendous uncertainty about the number of licensees that will seek to be Significant Uncertainty regulated by state agencies in the future.Given Regarding Resource Needs and Timing this uncertainty,implementing agencies have We find that there is significant uncertainty taken different approaches to estimating the size regarding the resources that will be needed of the cannabis industry,resulting in workload www.lao.ca.gov Legislative Analyst's Office 13 2017-18 BUDGET projections based on notably different estimates not account for this likely change.Accordingly,we of the licensee population.For example,BOE's find that there is even greater uncertainty regarding budget request assumes that there will be 1,700 the DCA's anticipated resource needs in future dispensaries/retailers remitting taxes(based years. on a study performed in 2014),while DCA's Amount of Resources Necessary for IT Systems request assumes there will be 6,000 dispensaries/ Uncertain Given Early Project Stage.There are retailers(based on extrapolations from Colorado's also uncertainties regarding the costs associated experience with cannabis legalization).While with creating the IT systems to regulate this new there could be different reasonable approaches to industry.Implementing departments are still in estimating the licensee population given the lack the relatively early stages of IT project development of reliable information,ideally all implementing and implementation.For example,DCA has departments should be operating under similar not yet provided the California Department of assumptions for the purposes of crafting the Technology or the Legislature with the alternatives budget. analysis—including cost-benefit analyses—of their Furthermore,the assumptions about project,information that is critical in informing licensee populations used by departments has a the Legislature on the merits of the proposed large effect on the licensing,enforcement,and approach.Additionally,DCA and CDFA have not tax administration resources requested.Thus, yet completed the selection of vendors to customize if departments'estimates of future licensee their software solutions(known as a"Systems populations turn out to be incorrect,there could be Integrators").We expect that future-year funding a significant impact on their resource needs. needs for the projects will become more certain as There is also uncertainty about other aspects of they proceed. the workload costs associated with each licensee. We further note that the specific ongoing For example,DCA estimates it will conduct resources requested by DCA for its IT system enforcement-related investigations on 10 percent appear inflated.For example,the department of its licensees that require testing of cannabis has identified$1.8 million in ongoing costs for products.The request assumes that it will cost system integration.However,we would expect $1,000 to test each cannabis sample.This cost that these expenses should decline after the initial estimate for testing is based on information from development is complete. the University of California,Davis.However, Timing of Expenditures Uncertain Given private testing labs reportedly charge much less Ambitious Timeline.January 1,2018 is an than this—often less than a couple hundred ambitious timeline to begin accepting and issuing dollars—so it is unclear what the costs will be for licenses because departments must conduct this testing. environmental reviews,finalize regulations and The uncertainties about the number of guidelines,have staff in place,and set up IT systems licensees and associated workload become even in a shorter period of time than is normal for such greater in out years as the share of new versus a large and complex new regulatory program.If renewal applications would likely change compared there are delays,for example,with environmental to the initial years of regulation.We would reviews,it could make it very difficult to meet the expect renewal workload to be lower than for new January 1,2018 implementation date.Moreover,if applications.However,DCA's budget request does the Legislature chooses to modify the regulatory 14 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET requirements under MCRSA or Proposition 64, on an ongoing basis.In contrast,CDFA and BOE this could require departments to restart some have generally taken more modest approaches to regulatory development activities,thereby affecting requesting resources.Specifically,CDFA does not their timelines for finalizing regulations.Thus, propose significant additional resources in 2018-19 there is some uncertainty as to the extent to which beyond what it requests for 2017-18,and it requests departments will be able to begin issuing all new that all of its funding be approved on a three-year licenses by January 1,2018. (This uncertainty is limited-term basis.Additionally,BOE's request reflected in the administration's estimate that there (1)assumes relatively modest workload(assuming will be no excise tax revenue from cannabis in a retailer population of only 1,700,as discussed 2017-18.)The timing of issuing new licenses will,in above), (2)seeks less funding than its workload turn,affect the amount of resources needed in the justifications would support in many cases, budget year.For example,if licensing entities are and(3)proposes limited-term funding for over significantly delayed in issuing new licenses,there 20 percent of its positions and almost two-thirds may be limited tax collections and reduced need for of its overall request.In our view,the more BOE tax administration staff in the budget year. conservative and incremental approaches taken by Federal Enforcement of Cannabis Laws CDFA and BOE are reasonable given the significant Uncertain.Existing federal policy could change uncertainty surrounding future resource needs. in the future.If the federal government decides to begin enforcing federal law more stringently, General Fund Loan Amount Needed Will this could affect the state's ability to effectively Depend on Amount of Funding Approved implement regulations on cannabis.If operation of The administration proposes a General Fund medical and/or nonmedical cannabis businesses loan to the MCF of up to$62.7 million in 2017-18. were no longer allowed by the federal government, As shown in Figure 4,once the starting fund this would decrease the level of resources needed balance and anticipated expenditures and licensing by all of the state licensing agencies involved.The revenues are taken into account,this General Fund coming months may bring some additional clarity loan would result in an estimated fund balance at regarding whether recent leadership changes at the the end of the fiscal year of$29 million,which is federal level will bring any modifications to federal likely to be higher than necessary.Even if the state policies regarding cannabis enforcement. did not generate any license revenues in 2017-18, Departments Have Taken Various Approaches to Requests Given Uncertainty. Figure 4 Notably,departments have taken different Marijuana Control Fund (MCF) Fund Condition approaches to crafting their budget proposals (In Millions) in light of uncertainty about future workloads. E, gWE4 Some departments used more conservative Resources 1 estimates of licensee populations and the resulting Beginning balance $6.9 $17.5 m workload,and in some cases,departments took License revenues — 11.5 an incremental approach of phasing in funding General Fund loans 35.5 62.7a ` Expenditures -24.8 -62.7 over a couple of years.For example,DCA phased Fund Balance $17.5 $29.0 in its funding request over a three-year period. a Based on budget bill.Administration's fund condition statement for MCF shows a higher loan amount of$78.3 million. DCA further requests the majority of its resources www.lao.ca.gov Legislative Analyst's Office 15 2017-18 BUDGET the MCF would have a projected balance in the the future(such as for increased IT costs).In our fund of$17.5 million,almost 30 percent higher view,it is reasonable for the General Fund loan to than total estimated expenditures in 2017-18.The be of an amount that provides sufficient funding for administration indicates that the high loan amount proposals in the event that revenues are lower than was to provide financial flexibility in the event that anticipated.Beyond that,a large fund balance is not it decided to propose additional expenditures in likely to be needed. LAO RECOMMENDATIONS Create One Regulatory over the next few months,the Legislature could Structure of Cannabis Activities get more information that will assist it in making We recommend the Legislature work with the its budgeting decisions,such as progress in administration to enact legislation to align the implementing regulations and IT systems,as well regulation of medical and nonmedical cannabis to as potentially some additional clarity on the federal the maximum extent possible.The administration's government's approach to cannabis. approach of creating one regulatory structure of Limit Funding Provided for Out-Years cannabis activities makes sense because it would likely eliminate some duplicative regulatory Given the high level of uncertainty regarding functions and reduce confusion among licensees. the resource needs that will be required in the For example,there are currently two departments future to regulate cannabis,we recommend taking (DCA and DPH)charged with regulating testing a more incremental approach to budgeting for laboratories.In our view,it makes more sense these departments by authorizing certain budget for a single department to perform this licensing requests on a limited-term basis.This approach function.In addition,licensees that want to is reflected in Figure 5,which compares the participate in both medical and nonmedical Governor's proposed funding amounts to our activities could face confusion in an unaligned recommended funding amounts.(In some cases, system because they would face different rules our recommended funding amounts reflect our under the two sets of regulations. estimates based on available information.)Under Make These Policy Choices Before Making our proposed approach,departments would be Budget Decisions.To the extent possible,before budgeted as proposed in 2017-18,but in some cases making its decisions on the Governor's requested receive less funding than requested in subsequent funding and related positions,we recommend that years.This incremental approach would allow the Legislature make its decisions on the extent to the Legislature to re-evaluate resources as part which it wants to modify the provisions of MCRSA of the 2018-19 budget process when additional and Proposition 64 to better align the regulatory information is available on actual workload.In a structures for medical and nonmedical cannabis. few cases—such as for BOE and CDFA's non-IT- Doing so could better enable the Legislature to related request—we recommend providing the provide the funding and staffing levels consistent multiyear funding requested because we either find with the ultimate regulatory structure.In addition, it to be critical or the department's estimates are 16 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET clearly based on conservative assumptions. (We • Share of DCA's 2017-I8 Licensing and note that these recommendations assume that the Testing Costs.We recommend approving a current statutory framework remains in place and portion of the funding requested by DCA might need to be revised if the Legislature enacts in 2017-18 on a two-year limited-term legislation to align MCRSA and Proposition 64.) basis.Given DCA's relatively high The specific proposals that we recommend assumption about the number of licensees modifying to be limited term are described below. in 2017-18,we recommend making a • All IT-Related Funding.We recommend share-20 percent-of its licensing and approving all of the IT funding requests support staff funding limited term.This for 2017-18,but reject proposed funding would be consistent with the share of its in the out years.Next year,we anticipate enforcement staff that DCA proposes to that better information will be available to fund on a limited-term basis. Furthermore, assess future IT costs because departments while DCA will very likely have ongoing will have selected systems integrators, enforcement-related testing costs,we and the new IT systems should be largely recommend funding these costs on a complete.At that point,departments will two-year limited-term basis rather than an have a better sense of additional work ongoing basis at this time given the level of needed to ensure the IT systems have uncertainty regarding future-year costs. the desired functionality,as well as the . None of DCA's Licensing and Enforcement necessary costs to operate and maintain Out-Year Requests.We also recommend their IT systems.This approach would denying requests for future increases in provide the additional benefit of giving the DCA's licensing and enforcement request Legislature an opportunity to use future at this time.While the department budget hearings to oversee the projects and might need to increase its licensing and ensure that they remain on-track.We note enforcement activities over time(for that this oversight is particularly important example,to staff the new proposed field for DCA given its recent challenges with offices),it is too early to tell what DCAs successfully managing the BreEZe IT ongoing level of resource needs will be. project. Figure 5 Summary of Governor's and LAO's Recommendations for Funding Cannabis Implementation (In Millions) 2017.18 2018.19 2019-20 2020-21 and After Department Governor LAO Governor LAO Governor LAO Governor LAO Consumer Affairs $22.5 $22.5 $30.9 $18.6 $30.4 $13.3 $30.2 $13.3 Food and Agriculture 22.4 22.4 16.1 5.5 16.1 5.5 - - Board of Equalization 5.4 5.4 2.7 2.7 2.1 2.1 2.0 2.0 Public Health 1.0 1.0 0.1 -0.4 -0.2 -0.4 -0.2 -0.4 Totals $51.4 $51.4 $49.8 $26.4 $48.4 $20.5 $32.1 $14.9 www.lao.ca.gov Legislative Analyst's Office 17 2017-18 BUDGET Reduce General Fund Loan to data to indicate how well programs are functioning. Reflect Actual Budget Actions This might include,for example,the average Once the Legislature determines its preferred amount of time to process licenses and to complete level of funding for 2017-18,we recommend it formal discipline actions against licensees.In our tailor the size of the General Fund loan provided view,this requirement would not constitute much to the MCF to meet those needs,without providing of an administrative burden for administering a bigger than necessary loan.For example,if the departments because the information contained in Legislature were to approve the Governor's current the report would be data that departments should requests for 2017-18,we would recommend that be collecting anyway. the Legislature reduce the Governor's proposed We recommend that this report be required General Fund loan by$17.5 million—from for each of the next five years,at which time $62.7 million to$45.2 million.This would leave we would expect that the programs would be an estimated reserve in the MCF of$11.5 million, fully implemented.Until that time,however, which would provide sufficient funds to cover all such a report would provide the Legislature and projected costs even if the state collected lower stakeholders with a consolidated,single source of license revenues than projected in 2017-18. information on the implementation of MCRSA and Proposition 64.This type of report would Require Additional Reporting on both facilitate legislative oversight and help inform Implementation of subsequent decisions for how best to implement Cannabis Regulatory Programs future stages of the cannabis regulatory system. Annual Report on Implementation and Moreover,such information could help shape Outcomes.We recommend the Legislature future cannabis policy by providing information enact legislation to require the administration that would illuminate how well different aspects of to submit a report by April 1 of each year on the the programs are working. implementation of MCRSA and Proposition 64. Quarterly Briefings on IT Projects.We This report should summarize department recommend the Legislature adopt budget bill activities and program outcomes. Specifically,we language to require the departments implementing recommend that this report include data on(1)the new cannabis-related IT projects—DCA,CDFA, activities each regulatory department expects to and DPH—to provide legislative staff with complete in the coming year,such as the number quarterly briefings on the status of these projects. of licenses that will be issued and the number It is important for the Legislature to have the of inspections that will be performed;(2)the information necessary to monitor the projects actual number of these activities completed in the given the implementation challenges inherent in past year;and(3)program outcomes. Outcomes developing and implementing large new IT projects reporting should include measurable performance in an expedited time frame. 18 Legislative Analyst's Office www.lao.ca.gov 2017-18 BUDGET www.lao.ca.gov Legislative Analyst's Office 19 2017-18 BUDGET LAO Publications This report was prepared by Helen Kerstein and Shawn Martin—with assistance from Seth Kerstein and Sonja Petek— and reviewed by Brian Brown.The Legislative Analyst's Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO's website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento,CA 95814. 20 Legislative Analyst's Office www.lao.ca.gov Prop 64 — Recreational Marijuana Update Council Study Session January 26, 2017 � � CALIFORNIA State Laws Regulating Marijuana . ti ! • Medical Marijuana Regulation and SaADULT US '. fettiT MARIJUANA Act (MMRSA)' - Bureau of Marijuana Control (BMC) - Medical ID card - 19 licensing types - Strong local land use control PROP 64 California Marijuana Legalization Initiative • Adult Use of Marijuana Act (AUUL/" _ (Proposition 64) wr- - Legalizes Adult Use (over 21) - Allows Property Owners to cultivate up to 6 plants BM M - Establishes State Excise Tax of 15%. State ytiP Cultivation Tax of $9.25 on flowers, $2.75 on non- ry flowers for both medical and recreational --' - Local governments can establish separate tax r , - Allows local land use control C'4LiFORN�P BUREAU OF MEDICAL MARIJUANA REGULATION } Local Control ��� � • ` ; .. • City should establish Ordinances to address: Personal Use'% Commercial U s e -- `' - Medicinal Use r� r � y►` • City's can choose to ban/regulate: late: - Retail - Medical Dispensaries - Delivery (to/from) - Outdoor Cultivation - Any State licensed business type • City's cannot ban Personal Indoor —a Cultivation (up to 6 plants) R ExistingCity Regulations -Wiwi : - • Current City Ordinance prohibits all !� Medicinal Marijuana operations (Chapter '_V 25.34.120) .�q4P• """` • City's Ordinance regulating "smoking" applies to marijuana (Chapter 8.36) G • AUMA prohibits outdoor smoking in public spaces and within 1 ,000 feet of school, park, other public spaces. • Current Zoning Ordinance omits - '' recreational and personal marijuana . .,. p l - Potential CityRegulations r • AUMA allows for "reasonable" regulation : for personal use - Prohibit outdoor grows - Require registration / owner authorization - Require business licensing - Inspections for indoor growth (safety) • Separate Medical/Recreation Use/Personal • Limit to commercial operations to specific zoning districts - Require CUP Separation requirements Square footage maximums a , FM a �U-0 Other Considerations • Controlled Substance Act (Federal) • $1 Billion estimated State Revenue (yearl) Recreational Marijuana Legalization in the U.s. Currently,eight states allow recreational marijuana use AOL— WIT NU - • State Grants LOW yry 0 '.1. NY M 4 VVY SD CT FI NE PA�, - 60 to youth programs, education, prevention, U � ��i /o IL il DE KS Mo W'VA •DC treatment NC IN OK s - 20% environmental clean up / restoration - 20% reduce DUI and other health impacts Legal Recreational Use - • Cities that ban marijuana uses are not eligible for grants • Local tax on commercial operations 37/39 local taxes passed in 2016 TRENDING ® _ director at Cowen&Co.,who analyzf the cannabis industry."And they're ,, legitimizing the product category" poi ��� ' - Justin time,and not �- coincidentally,fora projected boom in legal sales of medical and recreational-use marijuana, Get Posh expected to hit 550 billion by 2026,Cowen research shows. Azer said the increases are coming AS MORE STATES 'k, "disproportionately"from buyers r" � LEGALIZE MARIJUANA �' over 26 years old,a segment that " grew more than 30 percent in the ti RETAILERS AREA several years,compared to about a Ali percent bump in 18-25-year-olds OVERHAULING STORES ,,, The upscale retail trend has AND TARGETING THE - already spread around the country 'CHARDONNAY MOM.' ` from New York and Florida to California and the Pacific Northwest BY T.L.STANLEY ' with some stores(in San Diego and Tampa,Fla.)resembling day spas �Iliir and promoted as"wellness centers A marijuana shop would have to be pretty darn opulent and over the top to earn the nickname,"the Taj Mahal of THC"But then again,until recently,the bar was set pretty low in `The space this relatively new but fast,growing segment of the retail world. Diego Pellicer,a cannabis store in itself needed Seattle named for a Spanish hemp to feel magnate,looks like a cross between a high-end jewelry boutique and an art wtveleomin�museum.Customers get concierge- � Level service while they shop for gourmet weed infused edibles,potent not a place tinctures and,of course,designer bud t OU'd be Add-ons could later include in-house cafes or clothing pop ups at the afraid to flagship Washington lo�ation and its sister Denver site walk into. It's a far cry from tradit, nal pot dispensaries with their bulletprsof Joycelyn Pettway,6reotor of glass,burglar bars and ever-present , ., • fa Aity design MedMen bouncers And its a breakthrough in selling cannabis and related produl-ts with store owners and investors Shops in Las Vegas have their own pouring seven figures into design ng regi!:nal Sin City flair sleek and modern spa es that model At Diego Pellicer,"the Versailles themselves on Apple empor,a and of Seattle pot shops"according to Whole Foods markets rather than old- a local magazine,its 3 300 square- school,psychedeb head shops foot space features statues and The design is a vital part of the reach,ng beyond the typical stoner Hollywood neighborhood features chandeliers,granite floors and outreach for an;ndustry that an't dude and going after what one floor-to-ceiling windows,iPads on handmade hickory display cases advertise in mainstream med a In industry pioneer has dubbed,the walnut display tables and clever (How better to show off a$3.600 essence its phys cal locations are "Chardonnay mom" merchandising for the pot-friendly marijuana cigar stuffed with 28 acting as powerful marketing hoc ks "We want to open up the market- athlete and the pet owner looking grams of premium dope7 It recently to attract older,affluent buyers,many that's why we sell truffles and have for natural remedies.The shop was sold,by the way) of there first-timers And further the 'bud-tenders'"said Jocelyn Pettway recently revamped to the tune of In bra,nsterming a cannabis retail architecture and the tra;ned staff director of facility design for MedMen, about$150 a square foot,Pettway concept "we didn't want it to seem li can keep them engaged once they're the management company and said,in line with posh retailers like we were selling weed out of a garage inside encouraging them to hang out investment firm that operates well Nordstrom. because that model is outdated,"sail longer and spend more appointed cannabis stores n several The clean,curated and Alejandro Canto,owner and C00 of As more states legalize mar:uano areas.including Los Angeles and New sophisticated shops,all with a Diego Pellicer Seattle"We wanted ti (currently 28 states have said yes York "And the space itself needed to strong educational element about remove the stigma,and the consume to medical weed,and eight of those feet welcoming,not a place you'd be product sourcing and effects,"take these days demands a better,high ei and Washington,D.0,also allow afraid to walk nto" the intimidation out of the buying experience.As a retailer,you have to recreational sates,,pot sellers are MedMen's shop in the tony West experience,"said Vivien Azer,managing be proactive." 8 MARCH 21,2017 Aowi Marijuana could cause this city's 'golds )ose' to leave Page 1 of 6 Marijuana could cause this city's 'golden goose' to leave Corinne S Kennedy,The Desert Sun Published 12:14 p.m.PT April 13,20171 Updated 18 minutes ago Just before Christmas last year,Wes Hinkle,president of Palm Springs Volvo,got a phone call from an attorney informing him his client was planning to build two medical marijuana cultivation facilities on the land next to his Cathedral City dealership, land Hinkle had been considering buying to expand his franchise. "I just about fainted when I heard this,"he said. This was the first Hinkle and other local auto dealership owners had heard of the project by Cathedral City- (Photo:Richard Lui/The Desert Sun) based Mountain Edge Collective, Inc.,which incorporated Dec. 1,2016 and shortly thereafter submitted two applications for medical cannabis licenses from the city. Starting at the next city council meeting,a group of dealership owners began lobbying the body not to allow any cannabis-related industry to develop on the land, saying it could harm their businesses,the largest,and most profitable,employers in Cathedral City,or even result in them having to move. Dealers say they've had a productive and collaborate relationship with the city for years and feel somewhat betrayed that the city has seemed unwilling to work with them on this issue.Andy Jessup Jr.,president of Jessup Auto Plaza which includes GMC, Chevy, Buick and Cadillac, said it felt like"a slap in the face." Jessup said he has to get his franchise agreement re-approved every four years and didn't believe General Motors would do so knowing a marijuana cultivation facility had been built nearby.Other owners agreed. A copy of a service and sales agreement provided by Jessup does not explicitly mention marijuana but shows General Motors can force a dealership to close or relocate for a variety of reasons with very little notice.Agreements from other companies contain similar language. Collectively,the Cathedral City Auto Center provides more than half of the annual revenue that flows into city coffers. If the dealerships moved,or their capabilities were diminished,the potential revenue losses could stymie public safety funding and infrastructure improvements for years to come. Local News:Cathedral City asks residents to draw district maps for future elections(/story/news/local/cathedral-city/2017/04/13/cathedral-city-asks- residents-draw-district-maps-future-elections/305096001/) Not in their backyard Jessup said opposition to the facilities"ran deep"and he and other dealers would continue to speak against the project at planning commission and council meetings and would consider bringing an injunction if a conditional use permit was issued. Jessup said he has not retained an attorney specifically for this purpose but he has consulted a lawyer about the possibility. Hinkle,the Volvo dealer,described the auto center as a"golden n goose"and warned the council allowing cultivation facilities to go in behind it could halve long-term economic consequences. "They want the money,"Hinkle said of the council."But in 10 years,we'll still be there and they'll be gone.The city is out of control at this point." http://www.desertsun.com/story/news/local/cathedral-city/2017/04/13/pot-could-cause-citys-golden-goo... 4/13/2017 Marijuana could cause this city's 'golde >ose' to leave Page 2 of 6 IISsider �SIERRA WIN A TRIP FOR 2 TO ECUADOR&GALAPAGOS ENTRIES ACCEPTED HOURLY APRIL 3-APRIL 30 Insiders Only ENTER NOW (WWW.DESERTSUN.COM/INSIDER/DEALS/2017/03/08/WIN- TRIP-2-ECUADOR- GALAPAGOS/98817006/#/? CSP=INSLOY_BXAGILITY_GALAPAGOS&UTM_MEDIUM=AGILITYZO EXC HANG E&UTM_CAMPAIGN=GALAPAGOS2017) Bu)Photo as r '3 , View of Wolkswagen Palm Springs from the site of a proposed marijuana cultivation facility on Wednesday,April 5,2017 in Cathedral City.(Photo:Richard LuilThe Desert Sun) The dealers all said they weren't opposed to medical marijuana cultivation, but they didn't want it in their backyard.They proposed a marijuana district on the annexed city land north of Interstate-10,further away from established city business districts. Mayor Stan Henry said encouraging future cannabis industry development in that area was something the city was looking at. He said the city was working with Alex Gonzales, listed as the CEO,CFO and secretary of Mountain Edge Collective, and the auto dealers,trying to find a solution that would work for everyone,but it was ultimately up to the property owner. Gonzales declined to be interviewed. Contested land To encourage development, Henry said the city started working with Oakland-based M&M Property Company,the owner of the approximately 2.5 acre vacant lot where Gonzales has proposed building two cultivation facilities, market the land a year ago and had hoped one of the auto dealers would have purchased it to make plans to expand. He said Gonzales was able to strike a deal with M&M,which is listed as the landowner on Gonzales'permit application and in county property records. http://www.desertsun.com/story/news/local/cathedral-city/2017/04/13/pot-could-cause-citys-golden-goo... 4/13/2017 Marijuana could cause this city's 'goldc )ose' to leave Page 3 of 6 I he dealership owners said they heard(ionzale: nasea the land trom M&M—county property recc o not snow any recent change In ownership—so Hinkle said he put in a backup bid that was$100,000 over what he heard Gozales paid on the land to make room for an expansion of the Volvo dealership.The bid was denied. Bin Photo .................. .............. m rsF sF �r \may View of Highway 111 in Cathedral City from the site of a proposed marijuana cultivation facility on Wednesday,April 5,2017 in Cathedral City.(Photo.Richard Lui/7he Desert Sun) M&M bought the property from the successor agency to the city's former redevelopment agency in 2011.The property company and the city entered into an agreement that part of the land would be used to build an auto dealership.That parcel now holds Volkswagen of Palm Springs. The lot directly behind VW,which was not part of the development agreement, is now slated to play host to the Gonzales'cultivation facilities.The parcels immediately to the west are owned by the City Urban Revitalization Corporation, a non-profit which acquired most of the city's RDA land after its dissolution and now acts as a private"master developer"for the city, according to city staff. Local News:Downtown Cathedral City optimistic at tribe's proposal(/story/news/local/cathedral-city/2017/04/13/aqua-caliente-cathedral-city- casino/305083001/) Jessup said he put in a bid for those parcels, hoping to use the land to expand and prevent Gonzales from buying it to build more grow facilities. He said he had not yet received a response. The lot behind VW only became available for cannabis businesses in May 2016,when the city council rezoned the mountainside behind it from"open space residential"to simply"open space."City code prohibits cannabis facilities within 250 feet of residential areas. So by rezoning the neighboring land, the open land near the dealerships became fair game for cultivators. http://www.desertsun.com/story/news/local/cathedral-city/2017/04/13/pot-could-cause-citys-golden-goo... 4/13/2017 Marijuana could cause this city's 'gold( pose' to leave Page 4 of 6 ��.. ,.. z (From the left)Andy Jessup Jr.,president of Jessup Auto Plaza which includes Chevy,Buick,GMC and Cadillac,Majed Mansour,general manger of Palm Springs Nissan, Allen Holzhauer,owner of Wolkswagen Palm Springs and Wes Hinkle,president of Palm Springs Volvo,on the proposed site of marijuana cultivation facility located behind their auto dealerships.Cathedral City car dealers were banning together to oppose the facilities saying that pot businesses could bring crime and pot odors could drive away business.Photo taken on Wednesday,April 5,2017 in Cathedral City.(Photo:Richard LuilFhe Desert Sun) The mayor said the rezoning was to preserve the mountains and prevent people from building homes in them, like in neighboring Rancho Mirage,and opening up nearby land for cannabis businesses was an incidental byproduct of the preservation push. On a windy Wednesday morning,Allen Holzhauer, owner of Volkswagen Palm Springs,stood at the back of his lot with Hinkle,Jessup and Majed Mansour,general manager of Palm Springs Nissan,speculating how the next parcel over could look with cultivation facilities on it. Holzhauer shook his head as they discussed what might come next for the land. "This is the end of the automobile dealership expansion in Cathedral City,"he said. Dealership owners said they were concerned the city hadn't been completely transparent about the consequences of rezoning.All said they weren't notified of the change and when they requested more information from the city it was never sent. At a recent joint session of the city council and planning commission,Council member Shelley Kaplan said while it seemed to some that cannabis businesses were rapidly taking over the city, only about 40 of the 2,100 business licenses issued in the city were cannabis-related and square-footage wise, Cathedral City still lagged behind Desert Hot Springs and Coachella. Simmering issue Despite the figures Kaplan referenced,business owners and residents besides the dealership owners have expressed frustrations at the rate at which the pot industry has expanded in the city.After the council voted in May 2016 to allow cannabis dispensaries and cultivation and manufacturing facilities in light industrial zones of the city,some business owners along Perez Road said they were harassed(/story/news/politics/elections/2016/10/24/pot-facility- surge-troubles-some-cathedral-city-businesses/91174452/)by people looking to buy up real estate in the area for cannabis businesses. Others, like the owners of D&D carpet, said they simply couldn't afford to remain in the area,or even the city,as competition from dispensary and cultivation facility owners, backed by deep-pocketed investors, raised the price of land and buildings in industrial and light industrial zones. One planning commissioner even felt compelled to resign from the panel in October,citing frustrations with how the city was handling the expansion of the medical marijuana industry. In her resignation letter, Linda Snowden said she felt the city was being"irresponsible"and letting the industry expand unchecked. "I cannot face the residents and business owners of this city and rubber stamp the endless marijuana CUP permits this city council is pushing through with any sense of dignity,"Snowden wrote. She said she wasn't opposed to the medical pot industry and thought it could be a good thing for the city if handled differently.Snowden said the city's approach needed to be more measured and more time should have been devoted to studying potential negative impacts. http://www.desertsun.com/story/news/local/cathedral-city/2017/04/13/pot-could-cause-citys-golden-goo... 4/13/2017 Marijuana could cause this city's 'goldt pose' to leave Page 5 of 6 Keaci More:A'massive Undertaking'as Galltorn es to regulate manluana so legal sales can begin (/story/money/business/2017/04/03/marijuana-california-regulation-legalization/98970628/) California voters approved Proposition 64 legalizing recreational marijuana in November, producing another land rush as investors looked to get in on the ground floor of an increasingly profitable industry.As the number of prospective pot shops increased,valley cities have looked to update their cannabis regulations accordingly. In late November,citing concerns from residents and local business owners,the council voted to put a temporary moratorium on new dispensary applications and later voted to extend the measure, saying Cathedral City needed more time to examine the effects of the industry in the city and give city staff time to catch up on all the backlogged applications that had been submitted before the moratorium was put in place.The extended moratorium is set to expire in mid-May. While the moratorium prevented prospective dispensary owners from submitting new applications, it had no effect on applications submitted before the moratorium or on cultivation or manufacturing facilities.Council member Greg Pettis,who cast the lone no vote against both the original moratorium and the extension, said he believed the city should step back and let the market decide how many cannabis businesses it could support and which businesses would thrive. A city-wide issue Like the dealerships, residents of Outdoor Resort Palm Springs--a luxury RV Resort on Ramon Road in Cathedral City--said they found out a marijuana cultivation facility could be moving in next door far too late, resident Marlene Allen said.At the end of March,she received an email from the resort's general manager that there would be a community meeting to discuss the marijuana cultivation facility and dispensary which would be constructed on the vacant lot next to the resort. Bur Photo ,.,0"M — £ E�3 ' r i �p V ag 'w •wy w� A new medical cannabis cultivation facility could be built on a vacant lot next to Outdoor Resort Palm Springs in Cathedral City.(Photo:Corinne Kennedy/rhe Desert Sun) "The city is fine with it.That's what made me mad.They're perfectly fine with it. Don't they have any consideration for people who have lived here for 35 years?"she said. Allen and many of the dealership owners have accused the city of being short-sighted and chasing the potential tax revenue provided by cannabis facilities without thinking about the impact on residents and other businesses.The mayor,who admits he's not a supporter of the cannabis industry,said that wasn't true. "I think we're looking at it balanced.We need to diversify our budgets and revenue stream,"Henry said."Cannabis is a new, up and coming revenue source." http://www.desertsun.com/story/news/local/cathedral-city/2017/04/13/pot-could-cause-citvs-Liolden-t oo... 4/13/2017 Marijuana could cause this city's 'gold( pose' to leave Page 6 of 6 X .t 4 N. aixy;` \` C. r ; n)x u Andy Jessup Jr.,right,president of Jessup Auto Plaza which includes Chevy,Buick,GMC and Cadillac,talks with Steve Hinkle,Vice President of Palm Springs Subaru, on Wednesday,April 5,2017 in Cathedral City.(Photo:Richard Lui/The Desert Sun) The mayor said the city had long depended on revenue generated by the auto center, but needed to look at new ways to fund city projects in the future. And while he acknowledged some businesses had been displaced by cannabis cultivation and dispensing sites, he said the majority of pot shops went into vacant lots and storefronts, long vacant, in many cases. Henry said the cannabis industry is just one that the city has looked to in efforts to increase development in the city.A lucrative partnership with the Agua Caliente to bring a development potentially including a hotel and casino to an empty, 12.5 acre lot in downtown--just up 111 from the auto dealerships-- was announced Monday. Local News:Aqua Caliente planning new casino in downtown Cathedral City(/story/money/business/2017/04/11 lag ua-caliente-p Ian ning-new-casino- commercial-development-downtown-cathedral-city/305026001/1 Corinne Kennedy covers the west valley for The Desert Sun. She can be reached at Corinne.Kennedy@ DesertSun.com, on Twitter at @CorinneSKennedy or at 760-778-4625. Read or Share this story: http://desert.sn/2orAWnt http://www.desertsun.com/story/news/local/cathedral-city/2017/04/13/pot-could-cause-citys-golden-goo... 4/13/2017 LEAGUE 1400 K Street, Suite 400 •Sacramento, California 95814 OFCl I T t1Zi 'Ir1 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org IE C I T MEMORANDUM' To: League of California Cities' City Managers Department League of California Cities' City Attorneys Department From: League Staff Date: September 26,2016 Re: The Control,Regulate and Tax Adult Use of Marijuana Act On November 8,2016,the Control,Regulate, and Tax Adult Use of Marijuana Act("AUMA"or "Act")will come before California voters as Proposition 64. If passed,the AUMA will legalize the nonmedical use of marijuana by persons 21 years of age and over, and the personal cultivation of up to six marijuana plants. In addition,the AUMA will create a state regulatory and licensing system governing the commercial cultivation,testing, and distribution of nonmedical marijuana, and the manufacturing of nonmedical marijuana products. The regulatory system governing these commercial marijuana activities largely mirrors the Medical Marijuana Regulation and Safety Act("MMRSA"),but there are key differences. This memorandum will provide an overview of the AUMA,highlight the ways in which the AUMA differs from the MMRSA, and identify the issues that cities will need to take action on if the AUMA passes. I. Overview of the AUMA A. Personal Nonmedical Marijuana Use The AUMA makes it legal for persons 21 years of age or older to: (1)smoke or ingest marijuana or marijuana products; (2)possess,process,transport,purchase, obtain,or give away to persons 21 years of age or older,without any compensation,28.5 grams of marijuana, or 8 grams of concentrated marijuana,including as contained in marijuana products; and(3)possess,plant, cultivate,harvest, dry or process up to six living marijuana plants for personal use.2 The AUMA requires that marijuana in excess of 28.5 grams that is produced by plants kept pursuant to the personal cultivation provision of the Act be kept in a locked space on the grounds of a private residence that is not visible from a public place.3 Although persons 21 years of age or older may use and possess nonmedical marijuana under the Act,their ability to engage in these activities is not unfettered. The ALMA prohibits the smoking 1 DISCLAIMER: These materials are not offered as or intended to be legal advice. Readers should seek the advice of an attorney when confronted with legal issues. Attorneys should perform an independent evaluation of the issues raised in these materials. 2 Health&Saf Code§ 11362.2(a). 3 Health&Saf.Code§ 11362.2(a)(2). 1 of marijuana: (1) in any public place, except where a local jurisdiction has authorized use on the premises of a retailer or microbusiness in accordance with Business and Professions Code section 26200;(2)where smoking tobacco is prohibited; (3)within 1,000 feet of a school,day care center,or youth center while children are present; and(3)while driving,or riding in the passenger seat of, any vehicle used for transportation.4 Moreover, individuals cannot possess marijuana on school grounds, in day care centers, or in youth centers while children are present, or possess an open container of marijuana or marijuana products while driving,operating,or riding in any vehicle used for transportations The AUMA further provides that cities may prohibit possession and smoking in buildings owned, leased, or occupied by the city, and that employers, including cities,may maintain a drug and alcohol free workplace by prohibiting the use, consumption,possession,transfer,transportation, sale, display or growth of marijuana in the workplace.b 1. Personal Cultivation The AUMA provides that local governments can reasonably regulate,but cannot ban,personal indoor cultivation of up to six living marijuana plants within the person's private residence. The Act defines private residence as "a house, an apartment unit, a mobile home, or other similar dwelling unit."8 This includes cultivation in a greenhouse on the same property as the residence that is not physically part of the home,as long as it is fully enclosed,secure, and not visible from a public space.9 The AUMA completely protects the ability of local governments to regulate, and to ban,personal outdoor cultivation operations.10 However, it purports to repeal any ordinance that bans outdoor cultivation upon the California Attorney General's determination that nonmedical use of marijuana is lawful under federal law." B. Commercial Nonmedical Marijuana Activity Under the AUMA, California will have a comprehensive state regulatory system for nonmedical marijuana that governs the industry from"seed to sale."The Bureau of Marijuana Control, currently the Bureau of Medical Cannabis Regulation,which is within the Department of Consumer Affairs,will have primary responsibility for administering and enforcing the AUMA.t2 The AUMA divides state licensing and enforcement responsibilities among three agencies: (1) the Department of Consumer Affairs,which will issue licenses for marijuana the transportation, 4 Health&Saf.Code§§ 11362.3; 11362.4. 5 Health&Saf Code§§ 11362.3(3), 11362.3(4). 6 Health&Saf Code§ 11362.45 (f)-(g). Health&Saf Code§§ 11362.1(a)(3), 11362.2. 8 Health&Saf.Code§ 11362.2(5). 9 Health&Saf.Code§ 11362.2(a)(2). 10 Health&Saf.Code§ 11362.2(b)(3). 11 Health&Saf.Code§ 11362.2(b)(4). 'Z Bus.&Prof.Code§26010. 2 storage,distribution,and sale of marijuana;13 (2)the Department of Food and Agriculture will issue marijuana cultivation licenses,which will administer the provisions of the AUMA related to the cultivation of marijuana;14 and(3)the Department of Public Health, which will issue licenses for marijuana manufacturers and testing laboratories.15 Each of these state licensing authorities is responsible for creating regulations governing their respective areas of responsibility, and must begin issuing licenses by January 1,2018.16 A state marijuana license will be valid for one year.17 A separate state license is required for each commercial marijuana business location.'8 With the exception of testing facilities, any person or entity licensed under the AUMA may apply for and be issued more than one type of state license.19 1. Local Control All nonmedical marijuana businesses must have a state license.'-0 A state license cannot issue to an applicant whose operations would violate the provisions of any local ordinance or regulation.2 1 However a state applicant need not provide documentation that the applicant has a local license or permit. The AUMA does not limit the authority of a local jurisdiction to adopt and enforce local ordinances regulating or completely prohibiting state-licensed marijuana businesses.22 Local jurisdictions may establish"standards,requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections that exceed state standards.',23 2. Local Enforcement Like the MMRSA, the AUMA establishes a dual enforcement scheme for commercial marijuana activities that violate either state or local laws. The state licensing authorities will enforce state statutes and regulations. State authorities can suspend or revoke state licenses,24 pursue civil penalties against violating businesses in an amount equal to three times the applicable licensing fee per violation,25 or may prosecute violators criminally.26 Local authorities will be responsible 13 Bus.&Prof.Code§26012(a)(1). 14 Bus.&Prof.Code§26012(a)(2). 15 Bus.&Prof.Code§26012(3). 16 Bus.&Prof.Code§§26012(c),26013(a). "Bus.&Prof.Code§26050(c). 'a Bus.&Prof.Code§26055(c). 19 Bus.&Prof.Code§26053. 20 Bus.&Prof.Code§26038.) 21 Bus.&Prof.Code§26055(e). 22 Bus.&Prof.Code§26200(a). But see,Bus.&Prof.Code§§ 19340(f),26080(b),26090(c) [prohibiting cities from preventing the use of public roads to lawfully transport or deliver nonmedical marijuana]. 23 Bus.&Prof.Code§26201. 24 Bus.&Prof.Code§2603. 25 Bus.&Prof.Code§26038(a) 26 Bus.&Prof.Code§26038(c). 3 for enforcing local ordinances and regulations.27 For state-licensed facilities operating within a city, a city may have authority to enforce state law and regulations"if delegated the power to do so by the [B]ureau [of Marijuana Control] or a licensing authority. ,28 II. Key Differences Between the AUMA and MMRSA A. Licensing The MMRSA established dual licensing of medical marijuana businesses,requiring both local approval and a state license in order for a business to operate legally.29 Specifically,the MMRSA requires applicants to provide the relevant state licensing entity with documentation proving their compliance with local ordinances and regulations.30 The AUMA does not require an applicant to provide evidence of local permission prior to being issued a state license.31 Instead,the AUMA prohibits state licensing entities from approving licenses for activities that would violate local ordinances.32 Thus, state licensing officials bear the onus of evaluating local regulatory compliance. Under this system, the AUMA allows a nonmedical marijuana business licensed by the state to operate within city limits unless the city's municipal code prohibits the use. Cities that wish to regulate or prohibit nonmedical marijuana businesses will need to do so before the State begins issuing licenses, either by enacting a nonmedical marijuana ordinance/regulation or by amending an existing medical marijuana ordinance/regulation to include nonmedical marijuana within its scope. B. License Revocation Under the MMRSA, revocation of a local license or permit unilaterally terminates the ability of the medical marijuana business to operate in the jurisdiction issuing the permit,until such time as the local permitting entity reinstates it.33 Under the AUMA, if a local jurisdiction revokes a local license,permit, or authorization for a licensee to engage in commercial marijuana activity within the local jurisdiction,the Bureau of Marijuana Control must initiate proceedings to determine whether the state license issued should be suspended or revoked within ten days of being notified by the local jurisdiction of the local revocation.34 Note,however,that, even if the state license is not suspended or revoked immediately,the business cannot operate within the local jurisdiction once local revocation occurs. 27 Bus.&Prof.Code§26200(b). 28 Bus.&Prof.Code§23202(a). 29 Bus.&Prof.Code§ 19320(b). 30 Bus.&Prof.Code§ 19322(a). 31 Bus.&Prof.Code§26056. 32 Bus.&Prof.Code§26055(e). 33 Bus.&Prof.Code§ 19320(d). 34 Bus.&Prof.Code§26200(c). 4 C. Personal,Indoor Cultivation Under the MMRSA, local governments possess the power to regulate and completely ban personal, indoor cultivation.35 Under the AUMA local governments can"reasonably regulate" indoor cultivation of up to six marijuana plants for personal use,but cannot ban it.36 D. Personal Outdoor Cultivation Under the MMRSA local governments can prohibit all outdoor cultivation. Under the AUMA local governments can prohibit all outdoor cultivation,until such time as the Attorney General determines that the use of nonmedical marijuana is lawful in the State of California under federal law.37 Upon such determination,the AUMA purports to repeal all local bans on outdoor cultivation.38 E. Amendment Any portion of the MMRSA can be amended at any time, if there is sufficient political support within the Legislature for making substantive changes to the regulatory structure. Under some circumstances,an amendment to the MMRSA by the Legislature might arguably violate The Compassionate Use Act of 1996(adopted by the voters as Proposition 215), which decriminalized the personal use of medical marijuana.39 Under the AUMA,the Legislature may amend Sections 5 (relating to the use of medical marijuana for medical purposes)and 6 (relating to state licensing)and the provisions relating to penalties by majority vote. The Legislature may amend any other provision of the Act by a 2/3 vote. Any amendment must further the purposes and intent of the AUMA. The purpose and intent of the Act include allowing local governments to ban nonmedical marijuana businesses. F. Taxation The AUMA imposes new state taxes on medical and nonmedical marijuana in the following manner: • Effective January 1, 2018,the AUMA imposes an excise tax at the rate of 15%of gross retail sales receipts.ao o This tax will be in addition to existing state and local sales tax.41 Given that state and local sales taxes can range from 7-10%,the combined excise tax+sales tax at the retail level could approach 25%; 35 Health&Saf.Code§ 11362.777(g);Maral v. City of Live Oak(2013)221 Cal.App.4th 975,984;Kirby v. County of Fresno(2015)242 Cal.App.4th 940,969-970. 36 Bus.&Prof.Code§ 11362.2(b)(1). 37 Bus.&Prof.Code§ 11362.2(b)(4). 38 Bus.&Prof.Code§ 11362.2(b)(4). 39 Health&Saf.Code§ 11362.5. 40 Rev. &Tax Code§34011(a). 5 • Effective January 1,2018, the AUMA imposes a separate cultivation tax on all harvested marijuana as follows:42 o $9.25 per dry-weight ounce on all marijuana flowers; o $2.75 per dry-weight ounce on all marijuana leaves; • The AUMA prohibits imposition of state and local sales taxes on medical marijuana.43 • The AUMA exempts marijuana cultivated for personal use from taxation.aa The AUMA does not pre-empt local taxation.45 However,the AUMA's estimated cumulative tax rate of nearly 35%on the purchase of nonmedical marijuana has potentially troubling implications for local governments. A high state tax rate by itself may depress sales and stimulate the black market. Any local taxation of marijuana should be governed by an awareness that a high retail sales tax rate, imposed on an industry that,until recently,has not been regulated at all,might stimulate black market activity and compromise the anticipated yield of revenue. In order to avoid such a result, cities might consider imposing an excise tax on discrete commercial nonmedical marijuana activities rather than on retail sales.New taxes on marijuana require compliance with Proposition 218. 1. Allocation of State Tax Revenues After repaying certain state agencies for marijuana regulatory costs not covered by license fees, and making certain grants to universities for research and development and the Governor's Office of Business and Economic Development,the AUMA distributes the remaining tax revenue as follows: • 60%for youth programs, substance abuse education,prevention and treatment; • 20%for environmental cleanup and remediation; and • 20%for state and local programs that reduce DUI and grant programs designed to reduce negative health impacts resulting from marijuana legalization G. Deliveries Under the MMRSA,medical marijuana deliveries can only be made from a state-licensed dispensary in a city, county, or city and county that does not explicitly prohibit it by local ordinance.46 A delivery person must carry a copy of the dispensary's state-issued license,a government ID, and a copy of the delivery request.47 The patient or caregiver requesting the delivery must also maintain a copy of the delivery request.48 Dispensaries and deliverypeople who comply with MMRSA are immune from prosecution for marijuana transportation. 9 41 Rev. &Tax Code§34011(d). 42 Rev. &Tax Code§34012. 43 Rev. &Tax Code§34011(g). 44 Rev. &Tax Code§340126). 45 Rev. &Tax Code§34021. 46 Bus.&Prof.Code§ 19340(a). 47 Bus.&Prof.Code§§ 19340(b)(2), 19340(d). 48 Bus.&Prof.Code§ 19340(e). 49 Bus.&Prof.Code§ 19317(f). 6 Under the AUMA,deliveries can be made by a state-licensed retailer, microbusiness, or nonprofit unless they are prohibited by local ordinance.50 Although the AUMA does require a customer requesting delivery to maintain a copy of the delivery request, there is no express requirement that delivery people carry or maintain any records.51 Moreover,unlike the MMRSA, the AUMA does not require that deliveries come from a dispensary. Instead, it states that "Deliveries,as defined in this division,may only be made by a licensed retailer or microbusiness, or a licensed nonprofit under Section 26070.5."52 Thus,there is at least some question regarding whether deliveries may be made from non-retail locations by retail employees. Under both the MMRSA and the AUMA,local jurisdictions can ban or regulate deliveries within their borders.53 However, local jurisdictions cannot prevent a delivery service from using public roads to simply pass through its jurisdiction from a licensed dispensary to a delivery location outside of its boundaries.5' III. Local Regulatory Options55 The AUMA preserves the authority of a city to adopt business regulations and land use regulations for nonmedical marijuana activities.56 A. Personal Marijuana Cultivation Under the AUMA local governments can regulate or ban all personal, outdoor cultivation,until such time as the Attorney General determines that the use of nonmedical marijuana is lawful in the State of California under federal law. In addition, local governments can"reasonably regulate,"but cannot ban,personal, indoor cultivation.Nothing in the AUMA requires a city to enact an ordinance or regulation by a certain date. However,assuming that the AUMA passes, if a city does not have a ban or regulatory scheme governing personal,outdoor cultivation or a regulatory scheme governing personal, indoor cultivation in place before November 9,2016,a person may legally engage in personal cultivation of up to six marijuana plants at his or her private residence. 50 Bus.&Prof.Code§26090(a). 51 Bus.&Prof.Code§26090(b). 52 Bus.&Prof.Code§26090(a). 53 Bus.&Prof.Code§§ 19340(a), 19316(a),26200. 54 Bus.&Prof.Code§§ 19340(f),26080(b),26090(c). 55 For a thorough discussion of the various marijuana regulatory options that a city may consider,see McEwen, Medical Marijuana-Revisited After New State Laws(Spring 2016)<http://www.cacities.org/Resources- Documents/Member-Engagement/Professional-Departments/City-Attorneys/Library/20l 6/Spring-2016/5-2016- Spring-Medical-Marijuana%E2%80%93-Revisited-After>.In addition,sample ordinances may be found on the League's website,at:http://www.cacities.org/Policy-Advocacy/Hot-Issues/Medical-Marijuana. But note:the regulatory schemes discussed in the McEwen paper and posted on the League's website pertain to medical marijuana businesses under the MMRSA and may need to be modified to comply with the requirements of the AUMA. 56 Health&Saf Code§ 11362.2;Bus.&Prof.Code§§26201,26200(a). 7 B. Nonmedical Marijuana Businesses The AUMA recognizes a range of businesses, including dispensaries, cultivators,manufacturers, distributors,transporters,and testing laboratories. Cities may expressly ban,adopt business regulations, or adopt land use regulations pertaining to any or all of these businesses. Again, the AUMA does not require a city to enact a regulatory scheme or ban by a certain date. However, assuming that the AUMA passes in November, if a city wishes to regulate or ban marijuana businesses before marijuana businesses may legally operate within the city,the regulations or ban will need to take effect before the state begins issuing nonmedical marijuana business licenses. The League anticipates that cities have until January 1,2018 to enact bans or regulations relating to nonmedical marijuana businesses,because: (1)nonmedical marijuana businesses cannot operate in any city without a state license;57 (2)the state licensing agencies in charge of implementing the AUMA have stated that they anticipate that they will not begin issuing licenses under the MMRSA until January 2018,and it is unlikely that said agencies will be able to begin issuing licenses under the AUMA before they begin issuing licenses under the MMRSA; and(3)the AUMA does not require state agencies to issue licenses until January 1, 2018.58 It is not the League's position that state licensing agencies cannot issue licenses before January 1,2018,just that it is unlikely that they will do so. C. Caution Against Use of Permissive Zoning Under a permissive zoning code, any use not enumerated in the code is presumptively prohibited, unless an authorized city official finds that the proposed use is substantially the same in character and intensity as those land uses listed in the code.59 Although the MMRSA upheld a city's authority to rely on permissive zoning to prohibit medical marijuana land uses, it is unlikely that cities will succeed in arguing that nonmedical marijuana land uses are prohibited by permissive zoning under the AUMA. This is so because: (1)the statutory language in the AUMA regarding local control seems to anticipate that a city will adopt an ordinance explicitly prohibiting and/or regulating nonmedical marijuana businesses (rather than relying on the silence of its Code to argue for a prohibited use);60 (2)the AUMA does not contain the same protective language as the 57 Bus.&Prof Code§26038. 58 Bus.&Prof Code§26012(c). 59 See City of Corona v.Naulls(2008) 166 Cal.App.4th 418,433-436. See also County of Los Angeles v.Hill(2011) 192 Cal.App.4th 861,871 [holding that"medical marijuana dispensaries and pharmacies are not`similarly situated' for public health and safety purposes"]; City of Monterey v. Carrnshimba(2013)215 Cal.App.4th 1068, 1091 [holding that a medical marijuana dispensary was not substantially similar to the listed commercial use classifications for personal services,retail sales,pharmacies and medical supplies]; County of Tulare v.Nunes (2013)215 Cal.App.4th 1188, 1205 [holding that a medical marijuana collective did not qualify as an"agricultural" land use because"marijuana is a controlled substance and is not treated as a mere crop or horticultural product under the law"]. 60 Bus.&Prof Code§26200["Nothing in this division shall be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under this division,including, but not limited to,local zoning and land use requirements,business license requirements,and requirements related 8 MMRSA with respect to permissive zoning;61 and(3)the AUMA explicitly designates nonmedical marijuana as an agricultural product—thus if a city's permissive zoning code authorizes agricultural uses, the city may be precluded from arguing that marijuana is prohibited.62 Therefore, cities that wish to ban all or some nonmedical marijuana activities should adopt express prohibitions, even if they operate under a permissive zoning code. IV. What actions need to be taken? At this time city officials should: (1)review the city's municipal code; (2)consider whether they wish to regulate the personal cultivation of nonmedical marijuana indoors; (3)consider whether they wish to regulate or ban the personal cultivation of nonmedical marijuana outdoors; (4) consider whether they wish to enact business regulations of nonmedical marijuana businesses; (5)consider whether they wish to enact land use regulations of nonmedical marijuana businesses; (6) consider whether they wish to enact local taxes on marijuana; and(7)comply with Proposition 218 if they decide to enact local taxes on marijuana. Cities should prioritize considering or enacting ordinances regulating personal nonmedical marijuana cultivation,because it will be legal under state law on November 9,2016 if the AUMA passes, whereas nonmedical marijuana businesses will not be able to operate lawfully until the state licensing system becomes operational (likely in late 2017). Although cultivation for personal use will be legal as of November 9, 2016 if the AUMA is approved by voters, local governments will not lose any regulatory authority if they do not have an ordinance in place addressing personal cultivation before the election.Locals will retain the ability to regulate personal cultivation and to enact related ordinances at any time after the election. The only change the AUMA will make in this area is to prohibit local bans of indoor cultivation for personal use. No ordinance enacted prior to the election can prevent this change in the law. to reducing exposure to second hand smoke,or to completely prohibit the establishment or operation of one or more types of businesses licensed under this division within the local jurisdiction."](emphasis added). 61 Compare Health&Saf Code§ 11362.777(b)(3)[a"person or entity shall not submit an application for a state license. ..if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the city,county,or city and county in which the cultivation is proposed to occur,either expressly or otherwise under principles of permissive zoning"] with Bus. &Prof Code§26205(e) ["Licensing authorities shall not approve an application for a state license under this division if approval of the state license will violate the provisions of any local ordinance or regulation adopted in accordance with Section 26200."]. 62 Bus.&Prof.Code§26067(a). 9 What Cities Should Know About Prot.u�„ion 64,the Adult Use of Marijuana Act,continuea Jrom page 18 What Cities Should Know About Propositio-.,,,the Adult Use of MarUuana Act,continued to describe marijuana.Second,some of Adopting Local Regulations the various licensing categories in the there is no clear mechanism for providing J • B • P P • MMRSA.You can find Oakland's original the rules are different for recreational Other Than Bans state agencies the required information, marijuana—principally that indoor ordinance at www.cacities.org/Medical namely whether the activity for which the Director _ cultivation for personal a can no longer Any city considering adopting a regulatory Marijuana(click the Ordinances tab).The license is sought is in violation of local of • be banned,and the state now re-em is ordinance for medical marijuana should League website also provides ordinances ordinances.Prop.64's approach places CommunityDevelopment ♦ P P ,look at Oakland's ordinance which when the imposition of local sales tax on medi- from several other cities,which represent the responsibility on state agencies to do City of cal marijuana. first enacted was relatively comprehensive a variety of local regulatory approaches. additional legwork to obtain this informa- but has recently been updated to reflect he popular seaside community of Santa Cruz(pop. Your Executive Search Solution- tion and adds an unnecessary hurdle to the TSan 64,632)lies 75 miles south of San Francisco along the Regulatory Fees state licensing process.The League plans Lorenzo River between the Santa Cruz Mountains and Monterey Bay.The Planning& to ask for legislation requiring evidence Community Development Department is supported by a staff of 36.5 FTE and an annual operating 1 • B • P P • R T U N I T I E S A local regulatory fee must be established budget of$7.2 million.The department is organized across four divisions:Current Planning, at the outset.It is a good idea to survey of local approval to be included with all Advance Planning,Code Compliance,and Building&Safety. 1 applications for recreational marijuana what other cities are doing in this area. The ideal candidate will be a dynamic and highly strategic leader.In addition,he/she will be an The regulatory fee may take the form of business licenses,consistent with the dual empowering and energizing people manager with exceptional interpersonal skills and a history ,T licensing regulatory protocol established in of effective relationship building.Deep knowledge of contemporary planning principles will be CITY MANAGER an annual business license fee and should the MMRSA. expected.Six(6)years of progressively responsible experience in urban planning,which includes be linked as much as possible to the city's at least two years of management experience,is required.A Bachelor's degree in Planning,Public City of Diamond Bar, California actual cost of regulating one of these Administration,or related discipline is required.A Master's degree and/or AICP certification is Regulating Marijuana preferred. Annual Salary:DOQ + Excellent Benefits businesses for one year.For example,the Businesses: A Local Salary range$142,068-$181,284(additional 2%increase pending).Compensation also includes %»t►�' City of Oakland's marijuana business competitive benefits package.This recruitment will close at midnight on Monday,February 20, Incorporated in 1989,Diamond Bar is a financially stable,culturally license fee is$60,000 per year,and the Regulatory Checklist 2017.For detailed brochure and to apply online,visit www.tbcrecruiting.com. diverse community(population of 57,000)on the eastern edge of Los Angeles County within city can document that this amount is Cities have some basic issues to consider Teri Black•424.296.3111 minutes of Orange,Riverside and San Bernardino counties.With an operating budget of$26 what it costs the city to properly regulate when contemplating whether to adopt a Bradley Wardle•650A50.3299 million,the City has award-winning school districts,abundant recreational opportunities,and one marijuana business for one year;the local regulatory structure for recreational www.tbcrecruiting.com @ f*in an unparalleled commitment to public safety. fee covers issuance of permits,inspec- marijuana.First,there is little appreciable tions,audits and so forth. difference between medical marijuana The ideal candidate will be a public sector generalist,strong communicator and a diplomatic leader responsive to the City Council and public.The position requires at least five years of ordinances and those for recreational CITY OF • Law Enforcement and Fire marijuana,other than the adjective used progressively responsible municipal government experience,preferably in California,in the El Segundo, a Los Angeles Count beach city of almost 17,000, is located on the Santa Monica Ba . Services Input g g y y y planning,organization,coordination and administration of city operations at the Department p continued Residents enjoy classic California living with ocean breezes and a healthy outdoor lifestyle. El Segundo Head level or higher.A Bachelor's Degree and the possession of a driver's license is required. City officials should discuss with the balances an ideal business environment with a small town community to provide a high Quality of life for its residents and employers. There are tree-lined neighborhoods with award winning schools,parks and local Police Department and local athletic fields. A wealth of dining and retail experiences are thriving that range from historic Main Street For a detailed job brochure and to submit an online application,cover letter and resume please Code Enforcement Department their ►•- to recently constructed lifestyle shopping centers. visit the CiWs website at:www.diamondbarca.gov by 11:59 p.m.on March 12,2017.EOE responsibilities under any local regulatory CHIEF The Chief of Police will oversee a high service scheme and their comfort level related to P executing those responsibilities.The local POLICEE level department and will direct and manaeg the development of comprehensive plans to Q \/ E R Y meet the City's future needs for public safety services. The Chief is an ! \ Y Police Chief at-will employee reporting to the City Manager.The new Chief will have • ' ' , ' ' a Bachelors degree in Police Science,Public Administration or a directly William Avery&Assmiates California State University, San Marcos, CA Marijuana businesses deal in large amounts related field, and at least 10years of professional crime prevention, law Management Consultants California State University,San Marcos(CSUSM)is seeking a Police Chief who will provide of cash, which presents unique challenges for enforcement,and police administration experience including five or more 3112 N.Santa Cruz Ave.,Suite leadership, management,and supervision. Today, more than 15,000 students attend cities that opt to regulate them. years of police management and supervisory experience(or an eQuivalent Los Gatos,CA95030 the 304-acre, state-of-the-art main campus,which is nestled in the foothills of San -- combination of education and experience). 408.399.4424 't Marcos, Califomia (norther San Diego County). CSUSM Police Department is the The Public Works Director oversees a Fax:408.399.4423 primary agency for reporting and investigating criminal activity occurring on the PUBLIC CSUSM campus. The selected Chief is required to have a Bachelor's degree in department that provides the full array email:jobs@averyassoc.net Pa P y WORKS of public works services including water www•averyassoc.net police science,criminology,public administration,or a related field,plus eight(8) ' years of progressively responsible law enforcement or public safety work experience ' DIRECTOR and wastewater, streets, facilities, equipment and vehicle maintenance, and including a minimum of four(4)years leading and/or managing the work of others engineering. The new Public Works Director will have at least five years well-rounded experience in at the level of a Lieutenant or higher. A Master's degree, completion of the FBI >" municipal Public Works activities including muryears tenure at the division management level or higher, National Academy or POST Command College is preferred. Current Advanced including familiarity of the full range of public works and reQuires a BS/BA degree in a related field. POST certification is also preferred or the Chief must be able to satisfy all POST Registration as a Professional Engineer is desirable. standards within the first two years of employment.Experience in university policing The Information Systems Director is a newt created role that requires an is preferred, but not required. Salary is commensurate with the background and INFORMATION y y experience of the individual selected. If you are interested in this outstanding SYSTEMS innovative and service oriented business partner that provides pragmatic and opportunity,please apply online at www.bobmurrayassoc.com.Contact Joel Bryden • timely technology and business solutions to city operations. The Director at(916)784-9080 with any questions. DIRECTOR will work closely with other city executives in defining, prioritizing and Filing deadline is February 24,2017. U addressing city information technology needs.The position will require a background that includes six or — 4*rtre,,�� r moreyears of progressively responsible experience In the administration of IT systems with at least three phone 916.784.9080 of thoseyears at the supervisory or management level.A Bachelor's degree in a related field is required. 1 )1 & A s s o c i aT E s fax 916.784.1985 For more details,please see the formal job announcements,which include salary and benefits details and E E.........c.... www.bobmurroyassoc.com final filing dates at http://www.averyassoc.net/current-searches/* M www.westerncity.com Western City,February 2017 21 22 League of California Cities ,OVAO hs LZ 3 What Cities Should Know About Propositio0,the Adult Use of Marijuana Act,continued Fire Department should also be consulted Cities considering ' ' ' ' businesses ' take into if there is any possibility that the city will Prop.64 pre-empted all state and account ofproperly regulating such a business forone year, including issuingpermits and conducting inspections . audits. permit manufacturing facilities. local sales tax on medical marijuana; In general: • Law enforcement agencies tend to such taxes are no longer allowed. -_- advise against allowing mobile dispen- sariesor delivery services because it is difficult to track their movements and activities; • B • P P • R T U N I T I E Sson• Police may prefer a designated brick- and-mortar dispensary,whether for Ei medical or recreational marijuana;and Q;91C ' City of Mendota• If a city opts to allow delivery services, DIRECTOR OF ADMINISTRATIVE SERVICESthey should be under the ownership Salary:$60,010—$72,942(currently under review) and control of a dispensary,as required , r �,by the MMRSA. annually,plus excellent benefits 0 The City of Mendota is pleased to announce it is recruiting for the position of Director of Administrative Services.Mendota is nested in the heart of California's Central Valley and _ Managing the Local located in Fresno County.The City has a population of over 11,000 residents and bears the Regulatory Burden destination Cantaloupe Center of the World as agriculture is an important part of the City's economy.The Administrative Director will be a highly motivated individual with knowledge of Any city thinking about adopting regula- and experience in administrative services and have the ability to adeptly manage a multitude tory ordinances for marijuana businesses of departments simultaneously. business licensed by the state under become necessary as the only avenue to If there is no local prohibition on deliveries, should consider first adopting capita Ideal Qualifications: P g a per ca P Prop.64.Such a regulation would be with- prevent deliveries within a ciry's jurisdic- Prop.64 clearly allows for home deliveries formula or a numerical limit on how man » Three 131 years of increasingly responsible professional,supervisory,and administrative Y experience in personnel or closely related field. in the scope of cities'constitutional police tional boundaries. of recreational marijuana. Delivery is dispensaries it will ultimately have—for Bachelor's Degree in Public Administration,Business Administration or related field. power,which the courts have interpreted included in the initiative's definition of example, it can be one per 15,000 resi- » Knowledge and experience in human resources,risk management,municipal aviation,and broadly and upheld consistently. However,cities that have enacted delivery commercial marijuana activity,which is dents or some other formula. Limitingrant management. bans cannot prevent the transport of 9 mana 9 defined as"the commercial transfer of mari- the number of marijuana businesses in >> Ability to provide leadership of the department with a clear focus on the duties and As a fail-safe,cities also have the option marijuana through their jurisdiction responsibilities of administrative services for the Ci of prohibiting the local permitting of using public roads if the transport Juana or marijuana products to a customer." its jurisdiction,by whatever means,will �• P g P g g P P automatically make it easier for the city to Obtain an application online at www.cityofinendota.com.Final filing date:Open until filled. the categories of licensees that are au- originates from and ends in a location EOE/ADA thorized to make deliveries,should that outside the jurisdiction. Licensing regulate them,including conducting audits. I State licensing of medical and recreational continued marijuana businesses is slated to begin in January 2018.The Medical Marijuana Current 1• • • Regulation and Safety Act (MMRSA) ' Meet the Challenge requires evidence of local approval for a licensed activity to be submitted with r �e ' `�', •• an application for a state-issued medical � ,_ of New Marijuana Laws Z 2: ' Public Works Director marijuana business license; this is known 33 as the dual licensing requirement. It _ . a� P City of Signal Hill Matrix ConsultingGroup help p can p guide you through the Prop.64 differs from the MMRSA changing regulatory environment in California for marijuana because it does not require evidence of Finance Director y$ '' Cit of Napa cultivation and retail sales. local approval to be submitted with an y ' application for a state-issued recreational It is critical for local governments to be prepared for changes in: marijuana business license. Instead, Deputy City Managers Pro 64 simply provides that a state Assistants to the CityManager Codes Permitting and inspection processes Fees P PY glicense cannot be issued if the activity is City of Palo Alto in violation of local ordinances. However, Courtney Ramos because evidence of local approval need � t Check our website for detailed information-www.tbcrecruiting.com Senior Manager matrix g not be submitted when for a Teri Black•424.296.3111 cramos@matriXcg.net state license for a recreational business, i Julie Yuan-Miu•925.820.8436 f 650.858.0507 consulting group S www.tbcrecruiting.com Bradley Wardle•650.450.3299 O *in continued on page 21 1 �° Western City,February 2017 23 1 8 League of California Cities www.cacities.org What Cities Should Know About Propositio,�.,Y,the Adult Use of Marijuana Act,continued This is important because it accomplishes businesses deal only in cash and will All-Cash Payments: A Bona two things immediately: continue to do so until the federal Fide Security Issue In government reclassifies marijuana • • • • California • approved should be accompanied by a relatively 1. Automatically limits the citys overall as something other than a Schedule Cities that opt to regulate medical or detailed plan for regulating them,which regulatory burden;and 1 drug.Audits can determine or verify recreational marijuana businesses should legalizationthe is addressed later in this article. 2. Makes it less onerous to perform audits gross revenues,provide a fairly accurate have a procedure ge all-cash payments place for receiving of marijuana businesses.This is a picture of the volume of business and and depositing large This article presents some basic information , • Taxation critically important activity.Marijuana extrapolate how much revenue a local from them.This must include making Prop.64 pre-empted all state and local tax will yield for the city. appropriate security arrangements for • • changed. sales tax on medical marijuana;such taxes payment of annual business license fees city officials are no longer allowed.This is based on the J • • P P • R T U N I T I E S and tax payments. It may also include assumption that marijuana used for truly surveying local financial institutions medical purposes is not different from con- to see which ones are willing to accept ventional pharmaceuticals,which are not CITY OF • money from marijuana businesses.Credit Personal Cultivation Requiring as a condition of the permit subject to federal,state or local taxes.How- Monte Sereno is located approximately 50 miles southeast of San Francisco and just minutes from the unions may be more receptive than that the permit holder agrees to periodic ever,a host of other excise taxes may still heart of Silicon Valley. Because of the City's beauty, location and superior schools many Silicon Valley banks,but they too are regulated by a Under Proposition 64,cities can no executives have chosen Monte Sereno as their home.The community remains entirely residential,with no federal entity,the National Credit Union inspections(upon appropriate notice) be levied on medical marijuana,including t3' longer ban indoor cultivation for personal commercial zoning and 99%single-family housing,and is an upscale Silicon Valley bedroom community g P to ensure that cultivation does not: taxes on cultivation and manufacturing. with a population of about 3,400 residents. Administration,and may be reluctant to use and must allow such cultivation of up take any action that could be perceived to six plants per residence.However,cities c Exceed the six-plant limit; Prop.64 imposes a state excise tax of The City Manager is appointed by the City Council and is responsible forK21 as violating federal law or regulations. can"reasonably regulate"indoor cultiva- 0 Draw more electrical power from 15 percent on recreational marijuana,so carrying out the policy direction of the City Council in accordance with municipal law for the benefit of City (For more information,read"WhyBanks S tion for personal use,if they are willing to new local taxes on recreational marijuana P y residents. Specific duties of the City A V E R Y Dodt Serve Mari uana Businesses"at the grid than the building is Manager Include overseeing the departments. J undertake the responsibility.This may be should take the cumulative tax rate into CITY and administration of the annual ' s , ° ` ' ' ' ` ' www.westerncity.com.) designed to carry,thereby causing preparation William Avery 8 Associates ty an intimidating prospect,given that per- account.An pre-existing local sales taxes, City budget and other k projects. The new g P P g P afire hazard; Y P g MANAGER y g �'P I Management Consultants sonal cultivation will in many instances including the 1 percent Bradley-Burns tax City Manager will be a collaborative manager CT Forward be occurring in people's homes,but a city ° Present a health hazard,such as and transaction and use taxes,will apply who effectively delegates to and develops and empowers a small,close- 31/2 N.Santa Cruz Ave.,Suite g mold accumulation;or knit staff;works well with partner agencies and contractors who provide Los Gatos,CA 95030 In the coming weeks and months,there mo may want to actively regulate this activity to all recreational marijuana sales.Any key services to the community;and places a high value on communication 408.399.4424 due to public safe and public health business license taxes will also apply.A with Council.community,partner agencies,and staff. will likely be at least one major piece P �' P � Use more water than is reasonably y P S Fax:408.399.4423 considerations. Y cumulative tax rate that is too high will email:jobs@averyassoc.net of legislation that seeks to reconcile the required to cultivate six plants;and The new City Manager will be an experienced and accessible public www.averyassoc.net MMRSA with Prop.64.As noted earlier, stimulate black market activity and deny sector executive with excellent management and administration skills and the League will push fora provision that A key concern for cities will be whether Requiring compliance with the Fire cities whatever revenue the antici ate an unQuestionable reputation for integrity and transparency.Aback round as a City Manager.Assistant/ � P P local regulations are"reasonable"ass eci- Y P P g y P 9' g y g requires evidence of local approval as art P Code and imposing reasonable limita- from local marijuana taxes.For this rea- Deputy City Manager or other public sector executive is highly desirable for this position. For more q PP P fied in Prop.64.Examples of reasonable tions on the use of water. son,cities should ideallydetails,please see the formal job announcement,which includes salary and benefits details and final filing of the application process for recreational examine which regulations include but are not limited to: date at www.averyassoc.neUcurrent-searches/. businesses.Many other issues will be The issues of excessive water and electricity other existing local taxes can produce raised, including defining terms such as • Enacting a requirement for a resi- use could be doubl im important if a city marijuana-related revenue streams before ,� Y P q' ownership"and"premise,"establishing dential cultivation permit,with an has levied a utilitytax related to those levying a new marijuana-specific tax. limits on cultivation acreage,and decid- appropriate fee; resources,because spikes in such use Seeking Government ing whether to impose a requirement for ma not be easily attributed to a specific New Rules on Possession Y Y P independently owned distributors who residence—and thereby appropriately Prop.64 makes it legal for any adult to Real Estate Professional will ensure the collection of the state taxed—without the assistance of the possess up to 28.5 grams of cannabis or ,� �� excise tax,oversee product packaging and relevant utility. up to 4 grams of concentrated cannabis. verify product testing. Any person possessing an amount over Carpenter/Robbins Commercial Real Estate,Inc., located in San Ramon,CA,specializes in Finall it should be noted that the result Other Cultivation and these limits may be arrested and charged Commercial Real Estate Y� government real estate and seeks an individual of the 2016 residential election laces Commercial Recreational with a misdemeanor. P P to work with Cities and Counties to execute real estate projects on their behalf. Marijuana Businesses the implementation of Prop.64 in doubt. r Deliveries The ideal candidate should understand the internal workings of the city and It is not yet clear whether the next U.S. Under Pro 64,cities retain the authority + .,. p county real estate,planning,economic development departments as well as an attorney general will make enforcement to regulate and ban all other cultivation Cities retain the ability to ban deliveries as understanding of real estate transactions and consulting services. activities against recreational marijuana and all recreational marijuana businesses. a reasonable regulation on the operations a priority in the states that have legalized of retailers,microbusiness and non prof- Work includes,but is not limited to,lead and/or assist in the execution of P tY g Cities can decide whether to allow any P government RE assignments including acquisitions,dispositions,consulting, it.The only certainty as Western City recreational businesses in their communi- its—or any other recreational marijuana press is that bipartisan consensus ties.A decision to allow these businesses feasibility studies,report preparation,and property searches. goes to P P continued Strong written and verbal communication a must,current CA Real Estate remains intact in Washington,D.C.,on License a plus.Please provide salary requirements and resume to:Alyce Rados, `r Tim Cromartie is a legislative representative for the League and can be reached at President at arados@crcre.com. ....,� tcromartie@cacities.org. Western City,February 2017 17 24 League of California Cities www.cacities.org "7�!. B4*extraction used to manufacture concentrated r ':,�• mart*uana-derived products, such as the resin shown here, { has raised health and safety concerns. the issue of continuing to deny s 0 t , funding to federal enforcement © . • efforts against medical marijuana. •k w • • For that reason,depending on �► . o o What Cities Should Know About the federal government's actions under the Trump administration, 0 California could see a resurgence • - in medical marijuana in the com- ing months,and all efforts to move * :� forward with the implementation of recreational marijuana legalization could • • w • L L be on hold indefinitely. \ The League will keep its members ap- prised of the latest developments as the legislative session progresses. For more ' • information,visit www.cacities.org.■ Renowned as the seat of California's premier winemaking region and culinary destination,the dynamic City of Napa(pop.80,000)is also characterized by its rolling hills,near-perfect weather and beautiful f open space.This full-service municipality is supported by a FY2016-17 General Fund Operating � Budget of$79.2 million(total budget$188.8 million)and a workforce of approximately 460.The f Finance Department is organized across five divisions:Administration,Accounting&Auditing, Revenue,Purchasing,and Information Technology divisions. the Adult Use of Napa is seeking an inspiring and engaged professional to lead its 35-member finance team.The Special • • ideal candidate will be an exceptional people manager and mentor who is also known for being a _ collaborative business partner.He/she will be well-versed in contemporary uses of technology and , • Facilities may bring previous experience with system conversions/upgrades.Five years of local government • • +►' an • • finance experience,which includes at least three years of management experience,and a Bachelor's Mcuijua-ma Act degree are required.A Master's degree and/or CPA certification is preferred.Testing Facilities.In • • Salary range$137,093-$165,645.Placement within the range will be DOQE.A competitive benefits � both the MMRSA • Prop. •• testing package supplements salary.Closing date:Sunday,February 12,2017.For detailed brochure and _ • • • _engaged to apply online,visit www.tbcrecruiting.com. f�y Jy Tim Cromaftie r other Teri Black•424.296.3111 {s formsManufacturing.Until recently,all Julie Yuan-Miu•925.820.8436 of butane extractionCaliforniawww.tbcrecruiting.com © f V in illegal. • process �! containingused to create a concentrated product •- amounts of intoxicantConsequently Economic and Development Services Director unwillingmany cities were to issue City of Costa Mesa, CA permits • manufacturing ofany • The City of Costa Mesa(population 1 10,000)encompasses 16 square miles and is approximately and, some • -that• • saw one mile from Southern California's incomparable coastline.Costa Mesa has established a those facilities swiftly shut down by reputation as one of the area's leading cultural and business centers.The City is now seeking law enforcement. a dynamic,innovative,and experienced professional to lead its Economic and Development { Services Department.A Director with a proven track record of successful leadership and AB 2679(Cooley,Chapter 828, ability to effectively cultivate and maintain cooperative working relationships within the Statutes organization and the community will be ideal.The successful candidate will possess outstanding • oral and written communication skills and be comfortable interacting with internal and clarify-addresses this problem by external stakeholders on a regular basis.A leader who will embrace working collaboratively - • specific requirementsboth foralongside an active Planning Commission will be valued.At minimum,candidates must _ possess a bachelor's degree from an accredited four-year college or university with major legal • • • • • • course work in planning,public administration,engineering,the social sciences,or a related ,� extraction • •nonvolatile• solvents. field,and have extensive progressively responsible experience in the fields of city planning, NZ__ clarificationThis •• • redevelopment,and closely related fields,with considerable supervisory and administrative About This Article �4 experience.Certification by theAmerican Institute of Certified Planners(AICP)is also preferred.cause the MMRSA clearly anticipated A Master Code Professional or Certified Building Official will be a plus.The annual salary This article is provided general extraction •• • • • • range for this position is $138,612 - $185,760, DOQ. This salary range is currently _ _ •. • • under review.If you are interested in this outstanding opportunity,please visit our website •information and •• "• • League and the California Police at www.bobmurrayassoc.com to apply online. Please contact Ms.Valerie Phillips at law is constantlyevolving,an• • '.t •Ass • ••• -• -• on (916)784-9080 should you have any questions. Preliminary screening will begin following • •• disagree about - the application deadline of February 17,2017. requires. _ _ after confirming that the lifornia Fire sted in pur- phone 916.784.9080 • -• - Chiefs • • ••oppo -• /J B❑B MURRAY officialsdescribed �yi►+ r -+. 1 & ASSOCIATES fax 916.784.1985 should consult their city attorney.to the bill. EXPEIRT•IN EXECUTIVES Ewwen www.bobmurrayassoc.com www.westerncity.com Western City,February 2017 25 16 League of California Cities !f , i Gateway Industrial Park at Palm Desert City of Palm Desert Property Owners' Association, Inc. PO Box 12950 J U N 22 2017 Palm Desert, CA 92255 (760) 770-3100 • Fax (760) 770-3199 Community Development June 22, 2017 Mr. Eric Ceja Principal Planner Community Development Department City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Hand Delivered Re: Draft Marijuana Use and Regulation Ordinance Dear Eric: Please bring the following two suggestions regarding the proposed Cannabis Ordinance to the attention of the members of the Cannabis Committee: 1. No such facility shall be allowed within 250 feet of residentially zoned property. The currently proposed language which would prohibit such uses "adjacent" to residential property doesn't provide for a"buffer" between uses. 2. No such facility proposed on property which is subject to CC&Rs and/or Design Guidelines of record shall be approved without prior approval by the appropriate reviewing body(POA Board or Architectural Committee). Thank you for your attention to this request. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., By: Thomas S. Noble President Cc: Caroline Halcovich Fabio Ceresa Jim Fullmer Gateway Industrial Parr at Palm Desert Property Owners' Association, Inc. PO Box 12950 Palm Desert, CA 92255 (760) 770-3100 •Fax(760) 770-3199 April 28,2017 Mr. Ryan Stendell Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 By e-mail:rstendell@cityofpalmdesert.org Original by U.S. Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Ryan: 1 have reviewed the referenced draft ordinance on behalf of the Gateway Industrial Park at Palm Desert Property Owners' Association,Inc., and offer the following comments: 1. Apparently the draft ordinance does not specify a minimum distance by which a commercial marijuana operation must be separated fi-om residential property. Ordinances adopted by other Coachella Valley cities require a minimum distance of 250 feet and we suggest that at least that standard should apply in Palm Desert; 2. The recorded CC&Rs of the Gateway Industrial Park at Palm Desert Property Owners' Association,Inc.,provides at Section 8.2.5 Nuisance: "No Parcel or portion thereof shall be used foi dny purpose or business which is dangerous or unsafe,which constitutes a nuisance,or is in any way obnoxious or offensive by reason of, among other things,the emission of dust, odors,smoke,vibrations,electro- mechanical disturbances,intermittent lights, glare, noise, fumes, ash or sound." We ask that any party requesting a CUP under this ordinance (when/if adopted)be advised of this provision and that approval by this Property Owners'Association be required before approval of any such CUP. Mr. Ryan Stendell April 28,2017 Page 2 of 2 Thank you for your attention to these requests,please feel free to contact us with any questions or comments that you may have. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association,Inc., Thomas S.Noble President I Cc: Caroline Halcovich Fabio Ceresa Gateway Industrial Park at Palm Desert c Property Owners' Association, PO Box 12950 Palm Desert, CA 92255 (760) 770-3100 9 Fax(760) 770-3199 May 3,2017 Mr.Eric Ceja Principal Planner Community Development Department City of palm Desert 73-510 Fred Waring Drive Palm Desert,CA 92260 By e-mail: ece'a cit o£palmdesert.ora Original by U.S.Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Eric: Thanks for your very prompt reply to my letter of April 28°i to Ryan Stendell, I will appreciate your bridging my comments regarding the need for a specified minimum distance between a cannabis facility and residential property to the attention of the members of the cannabis advisory committee and I hope that they will follow the lead of other jurisdictions in recommending same. I do not understand the concept of treating cannabis operations which may be permitted by the proposed ordinance",,.like any other retail establishment....". The proposed ordinance would allow the full spectrum of marijuana related functions including cultivation and manufacture, It is questionable whether such activities are appropriate in Palm Desert's Service Industrial (SI)zone and they certainly do not meet the stated goals of the City's commercial areas. The CC&R's of the Gateway Industrial Park at Palm Desert Property Owners' Association,Inc.,present a separate issue. The restrictions quoted in my April 28'h letter are binding on all users of property in this development,not just owners. Owners of such prop4, should be aware of the CC&Rs but tenants may not be. It would be in no one's interest fo tenant to be granted a CUP for a function which would emit odors in violation of the CC Rather than to get into the legal wrangling entailed in the enforcement of CC&Rs it we much better to be certain that all parties to a potential lease or sale have actual notice restrictions which apply to this development. We will call the attention of all owne, Mr, Eric Ceja May 3,2017 Page 2 of 2 association to the restrictions set out in the CC&Rs and we think that it would be wise for the City to do likewise. Thank you again for your attention to these concerns. Please let me know if you would like to discuss these issues in person. Also,please advise me of all future meetings on this matter. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association,Inc., By: Thomas S.Noble President Cc: Caroline Halcovich Fabio Ceresa I 4 i' Sharon Walton From: eceja@cityofpalmdesert.org Sent: Monday, May 15, 201710:47 AM To: noblecompany760@gmail.com Cc: sharon@noblecompanyllc.com; Robert.Hargreaves@bbklaw.com Subject: RE:Attached letter Hi Tom, Understood. I will be recommending that the Cannabis Committee consider not allowing cannabis businesses that abut residential properties;similar to our recommendation to cannabis businesses near parks.There continue to be new updates, rulemaking, and trailer bills put out by the state and I am having to tweak the ordinance to be in compliance. I hope to have a meeting on May 31 to consider a revised ordinance. Thanks, Eric Ceja, Principal Planner Community Development Department eceja@cityofpalmdesert.ore P:(760)346-0611 F: (760)776-6417 i City of Palm Desert I 73-510 Fred Waring Drive Palm Desert,CA 92260-2578 From:Tom Noble[malito:noblecompany760@gmaii.com] Sent: Friday, May 05, 2017 9:34 AM To: Ceja, Eric Cc: sharon@noblecompanyllc.com; Bob Hargreaves Subject: Re: Attached letter Eric, Thanks for the up-date. Sorry to load you down with more questions but will you recommend a specific number of feet between cannabis facilities and residential property? When will the next committee meeting be held? Also,just to be clear,my concern regarding such facilities being in violation of our CC&Rs does not end with a property owner's approval of a tenant's or purchaser's application. It is very possible that an owner could give such approval but that the subject facility would be in violation of the CC&Rs by, as one example,emitting odors once it goes into operation. In such a case the POA would have the right to seek an injunction to stop such odors even if that required shutting down the business. It is obviously in everyone's interest to make all parties fully aware of the CC&R's provisions at the outset instead of having to enforce them with expensive legal action at a later date. Since this is largely a legal question I am copying the city attorney on this message. Thank you again for your attention to these matters. Tom Noble i On Thu, May 4,2017 at 5:12 PM, <eceja cr,cityofpalmdesert.org>wrote: Thank you for the letter. I will be recommending to the Committee that we prohibit cannabis related uses adjacent to residential properties. In addition,we do not receive or approve conditional use permit applications without property owner authorization. Thanks, Eric Ceja,Principal Planner Community Development Department eceja(@cityofpalmdesert.org P: (760) 346-0611 F: (760) 776-6417 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 -----Original Message----- From-, Sharon Walton [mailto:sharon@noblecompanyllc.coml Sent: Wednesday,May 03,2017 1:55 PM To: Ceja,Eric Cc: 'Tom Noble'; fceresaI@gmail.com Subject: Attached letter Mr. Ceja, Please see attached letter from Tom Noble. If you have any questions,please do not hesitate to contact him directly on his cell 760-221-3559. Thank you. Sharon Walton Noble& Company,LLC P. O. Box 12950 i Palm Desert, Ca 92255-2950 (760)770-3100 ext 21 FAX(760)770-3199 sharon(a-)noblecompan ll�c.c_om -----Original Message----- From: scanner@noblecompanyllc.com [mailto:scanner e,nobtecompanyllc.coml Sent: Wednesday,May 03,2017 1:31 PM To: Sharon Subject: Message from "RNP00267329DC86" This E-mail was sent from "RNP00267329DC86" (Aficio MP C3001). Scan Date: 05.03.2017 13:30:42(-0700) Queries to: scanner@noblecompanyllc.com 2 Tom Noble noblecompany760@gMail.com 760.221.3559 (Cell) 760.770.3100 34360 Gateway Drive Palm Desert,CA 92211 i 3 Gateway Industrial Park at Palm Desert Property Owners' Association, Inc. PO Box 12950 Palm Desert, CA 92255 (760)770-3100 ,o Fax(760) 770-3199 June 22,2017 Mr.Eric Ceja Principal Planner Community Development Department City ofPalm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Hand Delivered Re: Draft Marijuana Use and Regulation Ordinance Dear Eric: Please bring the following two suggestions regarding the proposed Cannabis Ordinance to the attention of the members of the Cannabis Committee: I. No such facility shall be allowed within 250 feet of residentially zoned property. The currently proposed language which would prohibit such uses"adjacent"to residential property doesn't provide for a"buffer"between uses. 2. No such facility proposed on property which is subject to CC&Rs and/or Design Guidelines of record shall be approved without prior approval by the appropriate reviewing body(POA Board or Architectural Committee). Thank you for your attention to this request. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association,Inc., By: Thomas S.Noble President Cc: Caroline Halcovich Fabio Ceresa Jim Fullmer CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Telephone: 760-346-0611 Cannabis Committee Meeting April 7, 2017 I. How We Got Here ScPeoo.k ►lA,4% eok ds• acevt-►---- Daklsrel C.r.wb�S J S. N t—Av oL+— II. Summary of Committee's Discussion III. Direction from City Council IV. Discuss DRAFT Marijuana Ordinance A�,,dtwJ +ram ZOIr;- ��DPcr� ♦- J7�1iv.� a. Definitions LAR AAyh^• b. Personal Use and Cultivation c. Commercial Operations d. Special Provisions V. Next Steps a. Committee (May) Ir. PC / CC — June/July •. Effective Date (August 2017) /; NOV CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT PLANNING COMMISSION STAFF REPORT REQUEST- CONSIDERATION TO ADOPT A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL TO ADOPT A ZONING ORDINANCE AMENDMENT TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 MEDICAL CANNABIS USE TO CANNABIS USE AND REGULATIONS AND SECTIONS 25.16 COMMERCIAL AND INDUSTRIAL DISTRICTS AND 25.18 ONE ELEVEN DEVELOPMENT CODE TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT SUMMITTED BY Eric Ceja, Principal Planner APPLICANT: City of Palm Desert CASE NO: ZOA 17-027 DATE: August 1, 2017 CONTENTS: 1. Draft Planning Commission Resolution No. 2706 2. Exhibit A — DRAFT Section 25.34.120 Cannabis Use and Regulations 3. Exhibit B — DRAFT Section 25.16 Commercial and Industrial Districts 4. Exhibit C — DRAFT Section 25.18 One Eleven Development Code 5. The Desert Sun Legal Notice 6. Notice of Exemption Recommendation Waive further reading and adopt Planning Commission Resolution No. 2706, recommending that the City Council adopt Zoning Ordinance Amendment 17- 027 to establish land use regulations and permit requirements for adult-use of cannabis and commercial cannabis operations. Backqround In February 2016, the City Council directed staff to establish a Cannabis Committee to review criteria for medical marijuana delivery operators. The Committee is comprised of two Councilmembers, a Planning Commissioner, a cannabis delivery operator, a medical doctor, Code Compliance staff, the Sheriff's Department, and Planning Division staff. The Committee met several times during 2016, and ultimately decided not to recommend any Staff Report ZOA 17-027 Cannabis Use and Regulations Page 2 of 5 August 1, 2017 land use regulation until voters weighed in on Proposition 64. On November 8, 2016, California voters approved Proposition 64 — the Adult Use of Marijuana Act (AUMA). This proposition allows adults over the age of 21 to use marijuana for recreational purposes under certain conditions. The AUMA also permits residents to grow up to six plants on their property and allows local jurisdictions to retain local control and establish individual land use restrictions. Following the passage of the AUMA on January 26, 2017, the City Council took action and directed Planning staff to meet with the Cannabis Committee to draft and review a new ordinance to regulate commercial cannabis operations in the City of Palm Desert, with the general direction being cautiously open to the industry based on the passage of AUMA. The Committee met several times over the past few months to review language for a new ordinance, and to discuss the limitations and regulations imposed on operators. In June of this year, the Committee recommended moving the draft ordinance through the public hearing process. Project Description If approved, Section 25.34.120 of the Palm Desert Municipal Code will be retitled to Cannabis Use and Regulations. The draft changes reflect the allowance of both medicinal and adult use of cannabis in accordance with the Medical Cannabis Regulations and Safety Act (MCRSA) and the Adult Use of Marijuana Act (AUMA) approved by the California voters; now the Medicinal and Adult-Use Cannabis Regulations and Safety Act (MAUCRSA). The City's Ordinance will allow for limited retail cannabis uses within the City's commercially zoned property, testing facilities within the City's Service Industrial and Office Professional zoned properties; and limited cultivation, manufacturing, distribution, and delivery in the City's Service Industrial zones. Cannabis related businesses associated with retail/dispensaries, cultivation, manufacturing, distribution, and delivery will be subject to a separation requirement of 1,500 feet from other cannabis related businesses, while testing facilities will be subject to a separation requirement of 500 feet from other testing facilities. All cannabis businesses are subject to review and approval of a Conditional Use Permit (CUP) by the Planning Commission. Commercial cannabis businesses must also meet State guidelines imposed by the Bureau of Cannabis Regulations and are subject to State licensing requirements. No commercial cannabis business may operate without first obtaining a City CUP and a license from the Bureau of Cannabis Regulations. Analysis Adult-Use and Personal Cultivation of Cannabis MAUCRSA permits the adult-use of cannabis, by persons over age 21, for recreational purposes. The new law also allows persons over the age of 21 to grow and maintain up to six (6) mature cannabis plants at their residence. The proposed ordinance addresses adult- use by reiterating state limitations, which prohibit cannabis use within 1,000 feet of a school, Staff Report ZOA 17-027 Cannabis Use and Regulations Page 3of5 August 1, 2017 daycare, or youth center, and restricts cannabis use similar to the restrictions in the City's Smoking Ordinance (P.D.M.C. Chapter 8.36). MAUCRSA allows local agencies to prohibit outdoor cultivation of cannabis plants for personal use at residences; however, local agencies cannot prohibit indoor cultivation. The Committee discussed this particular requirement at length and ultimately recommended that the ordinance permit outdoor personal cultivation citing safety concerns. The ordinance permits outdoor cultivation for personal use and limits cultivation to rear and side yard areas only and only where not visible from public streets. The ordinance also provides limitations for indoor cultivation, including requirements for proper ventilation and prohibits the use of certain flammable solvents, such as kerosene, gasoline, and butane, within the residence. Commercial Cannabis Businesses MAUCRSA establishes the Bureau of Cannabis Regulation as the State agency charged with licensing commercial cannabis operators in the State. The agency has created 20 distinct licensing types of commercial operators and requires that operators obtain a State license prior to operation. These 20 licenses generally fall into six (6) categories: retail dispensary, cultivation, testing, manufacturing, delivery, and distribution. The proposed ordinance; therefore, provides language related to the six (6) categories. The ordinance provides a definition for Commercial Cannabis Business and requires that all Commercial Cannabis Businesses obtain a CUP and State license prior to operation. By applying the CUP process, the Planning Commission will review and vet all cannabis operations prior to permit issuance. All Commercial Cannabis Businesses are limited to specific zoning districts in the City, are required to be separated by 500-1,500 feet, are required to apply best business practices, and must submit supplemental information with the CUP application. Permitted Locations Retail cannabis operations are conditionally permitted in all commercial zoning districts in the City except the Downtown Core Overlay zone. Retail cannabis is similar to other retail operations; therefore, is limited to commercial areas of the City. The ordinance prohibits cannabis businesses from the Downtown Core Overlay. Cultivators, manufactures, distributors, and delivery operations are conditionally permitted in the City's Service Industrial (SI) zones only. These businesses are similar to existing light industrial uses in the City; therefore, limited to similar locations. Testing facilities are conditionally permitted in the City's Office Professional (OP) and Sl zoning districts. Testing facilities operate similar to other testing and laboratory uses that exist in OP zones. Because testing facilities are more conspicuous and similar to other testing operations, staff believes they are compatible with other professional office operations and should be allowed in similar zones. Staff Report ZOA 17-027 Cannabis Use and Regulations Page 4 of 5 August 1, 2017 Separation Requirements The ordinance requires retailers, manufactures, cultivators, deliverers and distributors to be at least 1,500 feet from another cannabis business. Separation requirements are measured from the outer extents of a business's lease space. In addition, no cannabis business is allowed within 600 feet of a school, daycare, or youth center, or on properties abutting a residence or park. The separation requirements ensure that sufficient opportunities for commercial cannabis businesses exist without permitting them to proliferate in a single location or in great numbers. Staff is proposing a 500-foot separation requirement is applied between testing facilities. Testing facilities provide for professional uses similar to existing testing and laboratory uses in the City. Because testing facilities have limited cannabis on site and are more discreet, a reduced separation distance is being proposed. Operational Requirements & Supplemental Application Information The ordinance requires applicants of a CUP to submit additional information for review and to commit to certain operational requirements. The additional application requirements will be presented to the Planning COmmisison as part of their review and consist of the following : 1. A background check for the applicant and highest ranking employee. 2. Business plan. 3. Exterior fagade plan. 4. Open premise agreement. 5. Energy and water supply assessments. 6. A detailed security plan that includes: a. Use of product and inventory tracking software. b. Installation and operation of security cameras. c. Alarm systems monitored by independent third party. d. Product that is securely stored and not accessible to the general public. 7. Access plan and 24-hour emergency contact information. 8. A "community relations" plan notifying other business in the area of their operations. 9. Odor control. 10.Annual State license and City business license renewal. 11.An indemnity agreement. These requirements are in line with State guidelines and best practices employed in the industry. These requirements will be conditions on the business operations and any operator found in violation of these requirements could lose their ability to operate the business by revocation of the CUP. Staff Report ZOA 17-027 Cannabis Use and Regulations Page 5 of 5 August 1, 2017 This information is intended to identify legitimate cannabis businesses and ensure a professional and safe operation that is in line with community standards. These additional requirements will be reviewed by the Planning Commission as part of a CUP application. Environmental Review The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. The Director of Community Development therefore, is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Summary The proposed ordinance provides guidance and regulations for personal use and cultivation and commercial cannabis operations. Commercial operations are subject to approval of a CUP, and are required to be separated by specific distances from parks, residences, and other cannabis businesses. The ordinance allows the City to establish regulations that are compliant with State law. However, State law is constantly in flux, and staff anticipates amendments to the ordinance over the next few years to keep up with changes in the law. Findings of Approval Findings can be made in support of the project, and in accordance with the City's Municipal Code. Findings in support of this project are contained in the Planning Commission Resolution attached to this staff report. Submitted By: c Ceja, Prin al Planner Department Head: 4 Ryan Stendell, Director of Community Development PLANNING COMMISSION RESOLUTION NO. 2706 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO THE CITY COUNCIL TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 MEDICAL CANNABIS USE TO CANNABIS USE AND REGULATIONS AND SECTION 25.16 COMMERCIAL AND INDUSTRAIL DISTRICTS AND SECTION 25.18 ONE ELEVEN DEVELOPMENT CODE TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulation and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised of industry representatives, community members, and City staff, to review a potential cannabis ordinance and to make recommendations for changes to the City's Municipal Code to allow and regulate cannabis businesses; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 1" day of August 2017, hold a duly noticed public hearing to consider changes to the City's Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional Use Permit and certain regulations; and WHEREAS, the requirements established in the ordinance ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to licensing from the State Bureau of Cannabis Control; and WHEREAS, the Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution and laws of the State of California. PLANNING COMMISSION RESOLUTION NO. 2706 B. The California Constitution and Planning and Zoning Laws authorize cities to establish, by ordinance, the regulations imposed on certain business operations and that cannabis businesses can be conditioned and limited in the City. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Municipal Code amendment to Section 25.34.120 Cannabis Use and Regulations and 25.16 Commercial and Industrial Districts, and 25.18 One Eleven Development Code as shown in Exhibit "A°, °B" and Exhibit °C" which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. The Director of Community Development therefore, is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 1st day of August 2017 by the following vote, to wit: AYES: ' NOES: ABSENT: ABSTAIN: NANCY DELUNA, CHAIRPERSON ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSION RESOLUTION NO. EXHIBIT A PDMC SECTION: 25.34.120 — Cannabis Use and Regulations This Chapter shall be known as the "Cannabis Use and Regulation Ordinance" for the City of Palm Desert. A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, personal cultivation, manufacturing, testing, distribution, transportation, delivery, dispensing, retail sale, and personal adult use of medicinal cannabis and non-medicinal cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 (CUA), the Medical Marijuana Program Act (MMPA), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) (collectively, "State Law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. It is the intent of the City to allow personal cultivation at residential properties and commercial cannabis permitees within city boundaries, subject to approval of special permitting, terms, conditions, confirmation of a state issued license, and in accordance with the provisions of this title. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. B. Definitions Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter. Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources: The California Business and Professions Code Section 19300.5 and Section 26001, The Compassionate Use Act of 1996 (CUA), The Medical Marijuana Program (MMPA), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). "Applicant" means a person applying for a Conditional Use Permit whom will be the primary owner and operator for any Commercial Cannabis Business. "Cannabis" means all parts of the plant 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 cannabis. "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. 72500.00001\29696795.1 "Cannabis retailer" means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. "Cannabis manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or re-labels its container. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Commercial Cannabis Business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transporting, sale, dispensing, delivery or transport of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities for commercial use purposes. "Fully Enclosed and Secured Structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the Business & Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. 7 2500.00001\29696795.12 "Permittee" means any person granted a Conditional Use Permit under this Chapter. "Private Residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. "Sale" includes any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom such cannabis or cannabis product was purchased. "Testing Facility' means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Permit Required and Exemptions 1. Required i. All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit, City business license, and license from the Bureau of Cannabis Control prior to operation of any cannabis facility within the City. ii. Building permits for improvements associated with a Commercial Cannabis Business may be issued once an applicant has obtained approval of a Conditional Use Permit; however, a certificate of occupancy to operate will not be issued until said Commercial Cannabis Business has obtained, and provided the City proof, of a license issued by the Bureau of Cannabis Control as part of the City's Business License application. iii. Any Commercial Cannabis Business issued a Conditional Use Permit must provide the City with proof of a license issued by the Bureau of Cannabis Control prior to operation. Failure to maintain a license from the Bureau will result in revocation of the Conditional Use Permit and business license. iv. No Commercial Cannabis Business may operate in the City unless a license(s) from the Bureau of Cannabis Control has been issued and provided to the City's Community Development Department and Business License Division. v. A copy of the Bureau of Cannabis Control license, and any updates to the license, shall be provided to the Business License Division at the time of business license renewal. vi. Changes in license type, business owner, or operation will require an amendment to the approved Conditional Use Permit. 2. Exemptions i. Personal use, and cultivation of cannabis for personal use, is permitted outright on residential properties and subject to Subsection E of this ordinance and in accordance with the MAUCRSA. ii. Primary Caregivers engaged in the transportation of cannabis and cannabis related products to Qualified Patients for which they are the Primary 72500.00001\29696795.13 Caregiver are exempt from the requirement to obtain any special licensing from the City. iii. Any Cannabis Delivery operator, with a physical address outside the City is exempt from obtaining a Conditional Use Permit. The operator is required to obtain a business license with the City's Business License Division. D. Prohibited Activity 1. No Commercial Cannabis Business shall operate without first obtaining approval of: a Conditional Use Permit from the Planning Commission, a City issued business license, and the required State issued cannabis license from the Bureau of Cannabis Control. 2. No Commercial Cannabis Business shall operate within 600-feet of a school, daycare facility, or youth center as defined by this Ordinance and the MAUCRSA. 3. A Commercial Cannabis Business shall operate in accordance with the conditions adopted in the approved Conditional Use Permit and all conditions imposed by the Bureau of Cannabis Control. Commercial Cannabis Businesses shall only operate in designated zoning districts as identified in Section 25.16.030, 25.18.040 and within a fully enclosed and secured structure. 4. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. 5. Commercial Cannabis Businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth center. 6. Any activity generally prohibited by the AUMA, MCRSA, or other applicable State provisions related to Commercial Cannabis Businesses, and local ordinances. E. Personal Use and Cultivation Persons 21 years and older are permitted to use cannabis in accordance with the MAUCRSA, and subject to the City's Smoking Ordinance (PDMC 8.36). No special land use or business permits are required from the City for personal use and cultivation at or within a private residence. The following standards shall regulate personal use and cultivation: 1. Personal Use. Qualified patients and persons of legal age permitted to use cannabis in accordance with AUMA or MCRSA, and MAUCRSA, when it goes into effect, may do so on private property, out of public view, and in accordance with the City's "Regulations and Prohibitions of Smoking" Ordinance (PDMC 8.36). Generally, the use of cannabis is prohibited on City property, including 72500.00001\29696795. 14 parks, common areas in City owned housing developments, and other public places. Smoking or use of cannabis is prohibited within 1,000 feet of a school or childcare facility. 2. Personal Cultivation — Residents in the City are permitted to cultivate cannabis on private residential property for personal use and in accordance with AUMA, MCRSA, and then MAUCRSA, when it goes into effect; subject to the following standards: i. Outdoor Cultivation a. Cultivation for personal use is only permitted on private residential property developed with at least one residential dwelling unit. No more than six (6) plants are permitted to be cultivated at a private residence. Property owners retain the ability to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site. b. Outdoor cultivation is limited to rear and side yard areas and only if screened by a solid block wall no less than six (6) feet in height. c. Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method. d. Outdoor cultivation within 600 feet of a school, daycare center, or youth center is prohibited. i. Indoor Cultivation a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the City's Building and Safety Department. b. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residences. F. Commercial Cannabis Businesses Commercial Cannabis Businesses are defined in Subsection B of this Ordinance and do not include businesses that only sell cannabis related paraphernalia. All Commercial Cannabis Businesses shall be regulated by the following: 1. Required Permits — All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit in accordance with PDMC Section 25.72.050 "Conditional Use Permit" Commercial Cannabis Businesses must also obtain a business license with the City's Business License Division and provide proof of a cannabis license issued by the Bureau of Cannabis Control in accordance with Section C of this Ordinance. Failure to provide proof of a state issued cannabis license within one year of Conditional Use Permit approval will render the Conditional Use Permit invalid. 72500.00001\29696795.15 2. Location —Commercial Cannabis Businesses are permitted in the City's commercial, industrial, and downtown zoning districts as identified in Section 25.16.030 "Allowed Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit Requirements" of the Palm Desert Municipal Code. In accordance with MAUCRSA, no Commercial Cannabis Business is permitted within 600 feet of a school, childcare facility, or youth center. Commercial Cannabis Businesses-are prohibited from operating on properties that abut public parks, single-family residential properties, or are located within the City's Downtown Core Overlay District. 3. Separation Requirement — Commercial Cannabis Businesses shall conform to the following separation requirements: a. No Conditional Use Permit shall be issued to a Commercial Retailer that is located within 1,500 feet of another approved Commercial Cannabis Business. b. Commercial Cannabis Businesses whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City's Service Industrial zoning district only, shall be separated by 1,500 feet from another approved Commercial Cannabis Business. C. Commercial Cannabis Businesses whose main business function is to operate as a testing laboratory are subject to a separation requirement of 500 feet and are exempt from the separation requirements listed above. d. No Conditional Use Permit will be issued for Commercial Cannabis Business located within 600 feet of a school, daycare center, youth center. e. With the exception of Commercial Cannabis Businesses whose business is located within a mixed-use building or whose primary business function is as a testing laboratory, no Conditional Use Permits shall be issued for commercial and industrial properties abutting public parks or private residences: f. All separation requirements will be measured from the outer extents of the Commercial Cannabis Businesses lease space to the outer extents of another Commercial Cannabis Businesses lease space, or to the property line of a school, daycare center and youth center. 4. Operational Requirements a. Commercial Cannabis Businesses shall be conducted only within a Fully Enclosed and Secured Structure that is not accessible to minors. 7 25 00.00001\296 96 795.16 b. Commercial Cannabis Businesses shall not create nuisance issues such a dust, glare, heat, noise, smoke, odor, and shall not be hazardous to use or storage of materials, processes, products, or wastes. C. All cannabis and cannabis products shall be kept in a secured manner during all business and nonbusiness hours. d. Commercial Cannabis Businesses shall utilize product and inventory tracking software and accounting software that is in-line with reasonable business practices within the industry. e. Commercial Cannabis Businesses shall install and operate security cameras at their place of business as follows: i. Security cameras shall be installed and maintained in good condition at all times. The areas to be covered by the security cameras include, but are not limited to sale, cultivation, manufacturing, processing, transportation, and distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. ii. Cameras shall be in use 24 hours per day, seven days per week. iii. Commercial Cannabis Business permittees shall maintain at least 120 concurrent hours of digitally recorded documentation. iv. Any disruption in security camera images shall be cured expeditiously and in good faith. f. Permittees shall install alarm systems that are operated and monitored by an independent third party security company. g. All storage areas shall be locked at all times and under control by the permittee's staff. h. All cannabis and cannabis products shall be securely stored and not accessible to the general public. 5. Conditional Use Permit Submittal Requirements— In addition to the requirements listed in the Conditional Use Permit, all Commercial Cannabis Businesses shall submit the following information in conjunction with the review of a Conditional Use Permit: a. Background Check. The applicant is required to provide names, addresses, and relevant criminal histories of those with an ownership interest of twenty-five percent (25%) or more, and for themselves and the highest ranking employee (manager, director, etc...) at the Commercial Cannabis Business. The background check must be submitted on a form prescribed by the City and can be obtained at the City's Business Licensing Division. b. Business Plan. To be submitted for operational, banking, and personal procedures to ensure adequate business knowledge, modeling and 72500.00001\29696795.17 support. C. Exterior Fagade. Renderings of the business facade shall be provided and reviewed as part of the Conditional Use Permit. Building facade plans shall include renderings of the exterior building elevations for all side of the building. All building facades shall be tastefully done and in keeping with the high architectural quality and standards of the City of Palm Desert. Because State Law limits certain advertising, the business facade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. d. Open Premises Agreement. By receiving approval of a Conditional Use Permit the permittee of a Commercial Cannabis Business is agreeing to open the business to City officials at any time during business hours for inspection and to review that the permittee is operating in accordance with the conditions of this title and the Conditional Use Permit. e. Cultivation permittees shall supply energy and water assessments for review as part of the Conditional Use Permit process. These assessments shall estimate the total amount of annual electrical and water use required to operate the Commercial Cannabis Business. Review of the assessment may require the applicant to supplement electrical and water use at the site to minimize adverse environmental impacts. f. Security Plan. All Commercial Cannabis Businesses shall provide a security plan and demonstrate compliance with the security camera provisions outlined in Section F4 of this Ordinance. g. Access Plan and 24-hour Emergency Contact Information. The applicant shall provide contact information including name, email, and 24-hour accessible phone number to the Community Development Department and Sheriffs Department. h. Community Relations. The applicant shall provide a 24-hour contact number to surrounding property owners within 100-feet of the permittees location. By issuance of a Conditional Use Permit the permittees of a Commercial Cannabis Business agrees to respond to inquiries, concerns, and complaints by surrounding property owners. i. Odor Control. The applicant shall identify methods for ensuring odors emanating from a Commercial Cannabis Business do not interfere with surrounding businesses and the public realm. Odor control methods, include, but are not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. j. Annual License Renewal All Commercial Cannabis Businesses are required to provide a valid license issued from the State Bureau of Cannabis Control at time of business license renewal. Business license are required to be renewed on an annual basis. 72500.00001\29696795.18 k. Indemnification Agreement. All Commercial Cannabis Businesses that obtain a Conditional Use Permit shall, and by acceptance of the permit, agree to hereby indemnify and hold harmless the City, its officers, agents and employees from any and all damages, claims, liabilities, costs including attorney fees, suits or other expenses resulting from and arising out of said commercial cannabis business operations. G. Penalties for Violation No person, whetheras principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this section. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this section, any condition caused or permitted to exist in violation of any of the provisions of this section is declared a public nuisance and may be abated as provided under the Municipal Code or State Law, and may result in revocation of a Conditional Use Permit. H. Grounds for Denial, Revocation or Suspension The issuance of a Conditional Use Permit for the operation of a Commercial Cannabis Business may be denied, and an existing permit may be revoked or suspended, if the permittee or applicant: a. Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant. b. Has been convicted of any offense related to the use, sale, possession or transportation of narcotics or habit-forming drugs. C. Has been convicted of any offense punishable as a felony, or has been convicted within a 10 year period immediately preceding the crime of theft in either degree. d. Failed to pay required taxes and business license fees. e. Failure to maintain a valid State issued license from the Bureau of Cannabis Control. f. Has failed to comply with the conditions imposed on the Conditional Use Permit. g. Has violated any provision of this chapter. 72500.00001\29696795.19 PLANNING COMMISSION RESOLUTION NO. Exhibit B Chapter 25.16 — Commercial and Industrial Districts Sections in This Chapter 25.16.010 Purpose.................................................................................................16-1 25.16.020 Characteristics of the Commercial and Industrial Districts ....................16-1 25.16.030 Allowed Land Uses and Permit Requirements......................................16-2 25.16.040 Specific Use Standards.........................................................................16-3 25.16.050 Development Standards........................................................................16-6 25.16.010 Purpose The purpose of this chapter is to establish commercial and industrial zoning districts in the City, along with allowed use and development standards applicable to those districts. These districts are consistent with and implement the City's General plan commercial and industrial district and center land use categories as indicated in Table 25.04-1 (Zoning Districts). 25.16.020 Characteristics of the Commercial and Industrial Districts The following descriptions of each district identify the characteristic uses, intensity of uses, and intended level of development for that district. A. Office Professional (OP). This district is intended for various levels of intensities for business, office, administrative, research and development, and/or professional land uses. This district is characterized by urban streetscapes with formal tree arrangements and larger block sizes. B. Planned Commercial (PC). The PC districts provide flexibility for commercial and mixed-use development. Generally, these districts are characterized as coordinated projects that integrate compatible commercial and residential mixed-uses. PC districts balance the need for automobile parking and pedestrian connections that are organized around walkable streetscapes and other pedestrian amenities. PC districts are further refined based on property size, proximity to residential uses, and as described below: 1. Specialty Commercial Center (PC-1). The specialty commercial center provides for small-scale commercial development that primarily serves surrounding neighborhoods and other immediate land uses. This district is characterized as being located in close proximity to residential development and, as such, provides high levels of convenient pedestrian access. This district also promotes the development of mixed-use (10.0 — 15.0 du/ac) as a transition between residential uses and other development types. 2. District Commercial Center (PC-2). The district commercial center provides convenient shopping opportunities outside of the downtown core area. This PC district provides large-format retail areas for the broader community and provides flexibility for the integration of mixed-use (10.0 — 15.0 du/ac) on upper floors of commercial buildings. The center is also characterized by traditional parking lots 16-11Page Chapter 25. 16 Commercial and Industrial Districts with formal tree arrangements and spacing and sufficient space for pedestrian areas and open space. 3. Regional Commercial Center (PC-3). The regional commercial center provides a unified area for commercial uses which offer a wide range of goods and services, including comparison and convenience shopping, entertainment, cultural, and recreational uses. The district provides for large-scale, large-format, commercial development that serves the broader region and is generally located around major intersections and properties in proximity to freeway overpasses. Although this district is predominately commercial, mixed-use (10.0 — 15.0 du/ac) is allowed and should be integrated into developments on the upper floor. 4. Resort Commercial Center (PC-4). The resort commercial center allows for the development of a range of entertainment, hospitality, restaurants, and recreational facilities with related commercial uses to serve visitors to the City. The district is characterized by multi-story development that provides recreation and entertainment amenities in accordance with its urban/natural setting, and provides flexibility to integrate mixed-use (10.0 du/ac). C. Service Industrial (SI). This district allows for the development of traditional business parks that allow for manufacture, distribution, research and development, and service of products intended for use within Palm Desert and surrounding communities. The district is characterized as having a more urban setting with buildings located near roadways, shared and connected parking, and streetscapes with formal street tree arrangements. 25.16.030 Allowed Land Uses and Permit Requirements Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed uses and corresponding permit requirements for commercial and industrial districts and all other provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions). The "Special Use Provisions" column in the table identifies the specific chapter or section where additional regulations for the specific use type are located within this ordinance. Use regulations in the table are shown with representative symbols by use classification listing: "P" symbolizes uses permitted by right, "A" symbolizes uses that require approval of an administrative use permit, "C" symbolizes uses that require approval of a conditional use permit, and "N" symbolizes uses that are not permitted. Uses that are not listed are not permitted. However, the Commission may make a use determination as outlined in Section 25.72.020 (Use Determinations). Chapter 25. 16 Commercial and Industrial Districts 16-21Page PLANNING COMMISSION RESOLUTION NO. Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercial/Industrial District (P=Permitted;A=Administrative Use Special Use Permit;C=Conditional Use Permit; Provisions N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.13 Dwelling,duplex C C C C C C 25.16.040.13 Dwelling, multifamily C C C C C C 25.16.040.13 Dwelling, single-family C C C N C C 25.16.040.13 Group home C C N N C C 25.16.040.13 Single-room occupancies N N N N N C Homeless Shelter N N N N N P Recreation, Resource Preservation,Open Space, and Public Assembly Uses Amusement facility, indoors N N C C C N Amusement facility, outdoors N N N C C N Community facility N N N N N P Day care center N C C C C N Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility, outdoor N N N P P N Institution, educational C C C N N C Institution,general C N C N N C Institution, religious C N C N N C Open space(developed or natural) N P P N P N Recreation facility, commercial N N P P P N Recreation facility, private N N N P P N Theater/auditorium N N P P N N Utility, Transportation, Public Facility,and Communication Uses Commercial communication tower C C C C C C 25.16.040.0 Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility(utility or service) N N N N N P Utility facility N N C N N P 16-31Page Chapter 25. 16 Commercial and Industrial Districts Retail, Service, and Office Uses Adult entertainment N N N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P Cannabis Retail N C C C C N 25.34.120 Cannabis Testinq Facilities C N N N N C 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P P P N N Grocery store N P P P N N 25.16.040.F Health club,gyms or studios N A P P P C Hotel N A A A P N Liquor store N P P P N N Liquor, beverage and food items shop N P P P P N Medical,clinic P N P P N N Medical,office P P P P N N Medical, hospital N N N N N C Medical, laboratory P N N N N P Medical office, accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office, professional P N P P P P Office, local government P N N N N P Office,travel agency P P P P P N Outdoor sales N N A A A A Personal services N P P P P N Restaurant A C C C P C 25.16.040.E/H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N Time-share project N N N C C N Automobile and Vehicle Uses Chapter 25. 16 Commercial and Industrial Districts 16-41Page PLANNING COMMISSION RESOLUTION NO. Automotive rental agency N N N N P P Automotive gasoline station N N C C N C 25.34.090 Automotive service facility N N C C N P 25.34.090 Automotive sales new and used(Outdoor/Indoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility N N N N N P 25.16.040.1 Industrial,Manufacturing,and Processing Uses Cannabis Cultivation N N N N N C 25.34.120 Cannabis Delivery N N N N N C 25.34.120 Cannabis Distribution N N N N N C 25.34.120 Cannabis Manufacturing N N N N N C 25.34.120 Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N N N N P Temporary Uses See Section 25.34.080 The establishment may be permitted with an Administrative Use Permit but may be elevated to a Conditional Use Permit at the discretion of the ZA based on:parking,traffic,or other impacts. 25.16.040 Specific Use Standards The following provisions apply as indicated to the uses listed in Table 25.16-1 (Use Matrix for Commercial and Industrial Districts): A. Caretaker Housing. Permitted only when incidental to and on the same site as a permitted or conditional use. B. Residential (mixed use). Residential uses may be established and maintained to be compatible with the permitted or the approved conditional uses in the vicinity. C. Commercial Communication Tower. All communication towers and antennas shall satisfy the requirements of Section 25.34.130 (Communication Tower and Antenna Regulations). 16-51Page Chapter 25. 16 Commercial and Industrial Districts D. Adult Entertainment. All uses defined as adult entertainment are required to meet the provisions established by Section 25.34.110 (Adult Entertainment Establishments). E. Commercial (ancillary). Applicable only to office and industrial complexes that occupy a minimum of two acres. Restaurant uses shall not exceed 10 percent of the gross leasable floor area and the total ancillary commercial uses, including restaurants, shall not exceed 25 percent of the gross leasable floor area of the complex. A Conditional Use Permit or Administrative Use Permit is required to review land-use compatibility and to ensure that adequate parking exists to serve the commercial use. F. Grocery Stores. Limited to a maximum building size of 10,000 square feet in PC-1, 30,000 square feet in PC-2, and 60,000 square feet in PC-3. G. Medical Offices, accessory. Permitted only when ancillary to and in conjunction with the operation of a hotel. H. Restaurants. Drive-through and drive-in facilities permitted by a conditional use permit as follows: 1. Permitted locations. i. Within Freeway Commercial Overlay District ii. On the following streets and as indicated in Figure 25.10-2: Monterey Avenue and Portola Avenue from the northern city boundary to the north side of Gerald Ford Drive. 2. Development standards. i. Drive-through lanes and window facilities shall be designed in a manner that they are screened and/or not visible from surrounding public streets. ii. Drive-through vehicle queue must be permanently screened and/or not visible from surrounding public streets. I. Vehicle Service and Storage Facility. The storage facility must be completely screened. 25.16.050 Development Standards The development standards included in Table 25.16-2 (Commercial and Industrial District Development Standards) are applicable to commercial and industrial districts. These standards, along with other development standards (e.g., landscaping requirements, signs, and parking standards) located in the zoning ordinance, are intended to assist property owners and project designers in understanding the City's minimum requirements and expectations for high-quality development. A. Special setback requirements. In addition to the setback requirements in Table 25.16- 2 (Commercial and Industrial District Development Standards) the following special setback provisions apply: 1. On interior lots in the PC zone districts, setbacks shall be the lesser of the setback requirement listed in Table 25.16-2 (Commercial and Industrial District Development Standards). For exterior lots or projects perimeter adjacent to public streets the setback standards below shall apply. Said setbacks shall be measured from the property line. 2. Building setbacks from planned street lines: Chapter 25. 16 Commercial and Industrial Districts 16-61F ag& PLANNING COMMISSION RESOLUTION NO. Table 25.16-2: Setbacks from Planned Street Lines Street Type Setback Distance Freeway 50 feet Major 32 feet Arterial 32 feet Collector 25 feet Local 25 feet 3. Where commercial districts abut a residential district, a fence or wall 6 feet in height shall be located adjoining the property line except adjoining a required front yard. All commercial district property lines adjoining a residential district shall be landscaped with plant materials for an area 10 feet in depth. 4. All nonpaved areas shall be landscaped and treated or maintained to eliminate dust. B. Exceptions: Development standards within the PC districts may be modified through the precise plan process as specified in Section 25.72.030Special standards within the Service Industrial (SI) district. Sound emanating from industrial properties shall be muffled so as not to become objectionable due to intermittence, beat frequency, or shrillness. The measurements of sound shall be measured at the lot lines and shall be measured to decibels with a sound level meter and associated octave band filter, manufactured according to standards prescribed by the American Standards Association. Maximum permissible sound pressure levels shall comply with the limits at table 25.16-2 and the following standards: Table 25.16-3: Maximum Permitted Decibels Octave Band in Cycles- Adjacent Residential District Lot Line of Use in the SI Second(decibels) Boundaries(decibels) Zone(decibels) 0-75 72 79 76-150 59 74 151-300 52 66 301-600 46 59 601-1200 42 53 1201-2400 39 47 2401-4800 34 41 Above 4800 32 39 1. The maximum sound pressure level in decibels shall be 0.002 dynes per square centimeter. 16-71Page Chapter 25. 16 Commercial and Industrial Districts 2. Toxic gases or matter shall not be emitted which can cause any damage to health, animals, or vegetation, or other forms of property, or which can cause any excessive soiling beyond the lot lines of the use. 3. Vibration from any machine, operation, or process which can cause a displacement of .003 of 1 inch as measured at the lot lines of the use shall be prohibited. Shock absorbers or similar mounting shall be allowed which will reduce vibration below .003 of 1 inch as measured at the lot lines. 4. Glare and heat from any source shall not be produced beyond the lot lines of the use. 5. Storage of refuse, trash, rubbish, or other waste material outside a permanent building shall be kept in enclosed containers in areas other than the front and side yards. 6. Lighting, including spotlights, floodlights, electrical reflectors, and other means of illumination for signs, structures, landscaping, parking areas, loading and unloading areas, and the like shall be shielded, focused, directed, and arranged as to prevent glare or direct illumination on streets or adjoining property. 7. Unless specific additional uses are permitted by the certificate of occupancy, the use of radioactive materials within the SI district shall be limited to measuring, gauging and calibration devices, as tracer elements, in x-ray and like apparatus, and in connection with the processing and preservation of foods. In no event shall radioactivity, when measured at each lot line, be in excess of 2.7 x 10-11 micro curies per milliliter of air at any moment of time. 8. Electrical and electronic devices and equipment shall be suitably wired, shielded, and controlled so that in operation they shall not, beyond the lot lines, emit any electrical impulses or waves which will adversely affect the operation and control of any other electrical or electronic devices and equipment. (Ord. 96 § 1, 1975, Exhibit A § 25.20-7.16) C. Special standards within the Office Professional (OP) district. 1. When adjacent to single-story residential, the rear and exterior side yard setbacks shall be increased by 6.43 feet for each foot of building height above 18 feet up to 25 feet tall. See table below: Table 25.16-4: Additional Setback in OP District Height Setback Distance 19 feet 26.43 feet 20 feet 32.86 feet 21 feet 39.29 feet 22 feet 45.72 feet 23 feet 52.15 feet Chapter 25. 16 Commercial and Industrial Districts 16-81Page PLANNING COMMISSION RESOLUTION NO. 24 feet 58.58 feet 25 feet 65 feet 2. Second-story Windows: Second-story windows are allowed to face adjacent single-story residential zones with sufficient screening; either with landscaping or another method as approved through the precise plan process. ......... ......... ......... 16-9 Page Chapter 25. 16 Commercial and Industrial Districts Table 25.16-4: Commercial and Industrial District Development Standards Commercial/Industrial District OP PC-1' PC-21 PC-3' I PC-4' SI Lot Dimensions Lot size, min 15,000 sf 3 ac 5 ac 30 ac 4 ac 20,000 sf Lot size, max None 10 ac 20 ac None None None Lot width, min 70' None None None No min 100, Lot depth, min 140' None None None No min 100, Setbacks2 Front yard, min 12 15 — — — 30' 20' avg Side yard, min (interior/exterior) 0720' 3A7 0720'3'4 0720'3.4 — 15' 0'/10,5 Street side yard, min 12 avg 15 — — — — 10, Rear yard, min 0720' 3'4 0'/20'3'4 0'/20'3'4 — 20' 0725'5 Coverage Floor Area Ratio 0.75 0.5 1.0 1.0 0.10 0.75 Residential Density Range 10.0— 10.0— 10.0— (mixed-use) 10.0 15.0 15.0 15.0 10.0 - Building Measurements Height, max (single-use) 40', 3 stories 35', 2 35', 2 35', 2 55', 4 40', 3 stories stories stories stories stories Height, max (mixed-use) 40 40 40 40 55 No. of Stories(mixed-use) 3 3 3 3 4 - Building size, max8 — 10,000 sf 30,000 sf — — — — Chapter 25. 16 Commercial and Industrial Districts 16-101P a PLANNING COMMISSION RESOLUTION NO. Commercial/Industrial District OP PC-1' PC-2' PC-3' PC-4' SI Landscaping Required landscaping, min percentage of lot area 15% 15% 15% 20% 20%9 - - Depth of landscaping in street 10, 10, 20' 30' 10, setback area, min — — Notes: 1. Development standards may be modified through the precise plan process as specified in Section 25.72.030. 2. See Section 25.16.050 A(Special Setback Requirements). 3. When an OP,PC-1 or PC-2 zone is adjacent to a commercially or industrially zoned property,the setback is zero. 4. When an PC-1,or PC-2 zone is adjacent to a residentially zoned property, the minimum required setback for a commercial structure or a joint use commercial and residential structure is equal to the building's height. 5. When an SI zone is adjacent to or across the street from residentially zoned property,the minimum side setback is10 feet and the minimum rear setback is 25 feet. 6. The side yard setback may be 0 feet where the main building structure on the same lot line of the abutting parcel is set back at 0 feet and both parcels are developed at the same time. 7. When adjacent to single-story residential,see Section 25.16.050 E(Additional Setback in OP District). 8. This standard refers to the maximum area for any single commercial enterprise. 9. For hotels,a minimum of 25 percent of the site area must be usable landscaped open space and outdoor living and recreation area with an adequate irrigation system. 16-111Pa g e Chapter 25. 16 Corninercial and Industrial Districts Exhibit C - 25.18.040 Land Use and Permit Requirements Amend Table 25.18-1. "Use Matrix for Downtown Districts" to the following Land Use Zone Special Use Provisions 4D D-O 1 DE DE-0 Retail, Service, and Office Uses Cannabis Retail C ^ N N N 25.34.120 Cannabis Testing Facilities C N N N 25.34.120 CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 17-027 NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 "MEDICAL CANNABIS USE" TO "CANNABIS USE AND REGULATIONS" AND SECTION 25.16 "COMMERCIAL AND INDUSTRIAL DISTRICTS" TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. The Director of Community Development therefore, is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Project Location: City-wide Code Amendment Description: Section 25.34.120 will be retitled to "Cannabis Use and Regulations" to reflect the allowance of both medicinal and adult use of cannabis in accordance with the Medical Cannabis Regulations and Safety Act (MCRSA) and the Adult Use of Marijuana Act (AUMA) approved by the California voters. The City's Ordinance will allow for retail and dispensary cannabis uses within the City's commercially zoned property, testing facilities within the City's Service Industrial and Office Professional zoned properties; and cultivation, distribution, and delivery in the City's Service Industrial zones. All cannabis related businesses will be subject to a separation requirement of 1,500 feet from other cannabis related businesses, and review and approval of a Conditional Use Permit (CUP). Cannabis businesses must also meet State guidelines imposed by the Bureau of Medicinal Cannabis Regulations and are subject to State licensing requirements. Recommendation: Staff is recommending that the Planning Commission adopt a resolution supporting the changes to Zoning Ordinance, and allow the item to move forward to a public hearing with the City Council. Public Hearing: The public hearing will be held before the Planning Commission on August 1, 2017, at 6:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from July 20, 2017 to August 1, 2017. Public Review: The ZOA is available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to, the Planning Commission hearing. All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 eceja@cityofpaImdesert.org PUBLISH: DESERT SUN RYAN STENDELL, Secretary JULY 20, 2017 Palm Desert Planning Commission 2 NOTICE OF EXEMPTION TO: FROM: City of Palm Desert ❑ Office of Planning and Research 73-510 Fred Waring Drive Palm P. O.Box 3044,Room 113 Desert,CA 92260 Sacramento,CA 95812-3044 ® Clerk of the Board of Supervisors 2724 Gateway Dr,Riverside, or CA 92507 County Clerk County of: Riverside 1. Project Title: Zoning Ordinance Amendment 17-027—Amendment to the City Municipal Code Section 25.34.120 Cannabis Use and Regulations 2. Project Applicant: City of Palm Desert 3. Project Location—Identify street address and City-wide cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2'topographical map identified by quadrangle name): 4. (a)Project Location—City: Palm Desert i (b) Project Location—County. Riverside 5. Description of nature,purpose, and beneficiaries The City amends its zoning ordinance to permit commercial of Project: j cannabis businesses in the City's industrial,office,and commercial zoning districts,subject to review and approval of a Conditional Use Permit. 6. Name of Public Agency approving project: City of Palm Desert 7. Name of Person or Agency undertaking the Eric Ceja,Principal Planner—City of Palm Desert project,including any person undertaking an activity that receives financial assistance from the Public Agency as part of the activity or the person receiving a lease,permit,license,certificate,or other entitlement of use from the Public Agency as part of the activity. 8. Exempt status: (check one) (a) ❑ Ministerial project. (Pub. Res. Code§21080(b)(1); State CEQA Guidelines§ 15268) (b) ® Not a project. (c) ❑ Emergency Project. (Pub. Res. Code§ 21080(b)(4); State CEQA Guidelines§ 15269(b),(c)) (d) ❑ Categorical Exemption. State type and section number: (e) ❑ Declared Emergency. (Pub. Res. Code§ 21080(b)(3); State CEQA Guidelines§ 15269(a)) (f) ❑ Statutory Exemption. State Code section number: (g) ❑ Other. Explanation: 9. Reason why project was exempt: Notice of Exemption FORM"B" 10. Lead Agency Contact Person: Eric Ceja,Principal Planner Telephone: (760)346-0611 11. If filed by applicant: Attach Preliminary Exemption Assessment(Form"A")before filing. 12. Has a Notice of Exemption been filed by the public agency approving the project? Yes ❑ No❑ 13. Was a public hearing held by the lead agency to consider the exemption? Yes® No❑ If yes,the date of the public hearing was: August 24,2017 Signature: Date: Title: ® Signed by Lead Agency ❑ Signed by Applicant Date Received for Filing: (Clerk Stamp Here) Authority cited: Sections 21083 and 21100,Public Resources Code. Reference: Sections 21108,21152,and 21152.1,Public Resources Code. Notice of Exemption FORM`B" CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT PLANNING COMMISSION STAFF REPORT REQUEST: CONSIDERATION TO ADOPT A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL TO ADOPT A ZONING ORDINANCE AMENDMENT TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 MEDICAL CANNABIS USE TO CANNABIS USE AND REGULATIONS AND SECTIONS 25.16 COMMERCIAL AND INDUSTRIAL DISTRICTS AND 25.18 ONE ELEVEN DEVELOPMENT CODE TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT SUBMITTED BY: Eric Ceja, Principal Planner APPLICANT: City of Palm Desert CASE NO: ZOA 17-027 DATE: August 1, 2017 CONTENTS: 1. Draft Planning Commission Resolution No. 2706 2. Exhibit A— DRAFT Section 25.34.120 Cannabis Use and Regulations 3. Exhibit B — DRAFT Section 25.16 Commercial and Industrial Districts 4. Exhibit C — DRAFT Section 25.18 One Eleven Development Code 5. The Desert Sun Legal Notice 6. Notice of Exemption Recommendation Waive further reading and adopt Planning Commission Resolution No. 2706, recommending that the City Council adopt Zoning Ordinance Amendment 17- 027 to establish land use regulations and permit requirements for adult-use of cannabis and commercial cannabis operations. Background In February 2016, the City Council directed staff to establish a Cannabis Committee to review criteria for medical marijuana delivery operators. The Committee is comprised of two Councilmembers, a Planning Commissioner, a cannabis delivery operator, a medical doctor, Code Compliance staff, the Sheriff's Department, and Planning Division staff. The Committee met several times during 2016, and ultimately decided not to recommend any Staff Report ZOA 17-027 Cannabis Use and Regulations Page 2of5 August 1, 2017 land use regulation until voters weighed in on Proposition 64. On November 8, 2016, California voters approved Proposition 64 — the Adult Use of Marijuana Act (AUMA). This proposition allows adults over the age of 21 to use marijuana for recreational purposes under certain conditions. The AUMA also permits residents to grow up to six plants on their property and allows local jurisdictions to retain local control and establish individual land use restrictions. Following the passage of the AUMA on January 26, 2017, the City Council took action and directed Planning staff to meet with the Cannabis Committee to draft and review a new ordinance to regulate commercial cannabis operations in the City of Palm Desert, with the general direction being cautiously open to the industry based on the passage of AUMA. The Committee met several times over the past few months to review language for a new ordinance, and to discuss the limitations and regulations imposed on operators. In June of this year, the Committee recommended moving the draft ordinance through the public hearing process. Proiect Description If approved, Section 25.34.120 of the Palm Desert Municipal Code will be retitled to Cannabis Use and Regulations. The draft changes reflect the allowance of both medicinal and adult use of cannabis in accordance with the Medical Cannabis Regulations and Safety Act (MCRSA) and the Adult Use of Marijuana Act (AUMA) approved by the California voters; now the Medicinal and Adult-Use Cannabis Regulations and Safety Act (MAUCRSA). The City's Ordinance will allow for limited retail cannabis uses within the City's commercially zoned property, testing facilities within the City's Service Industrial and Office Professional zoned properties; and limited cultivation, manufacturing, distribution, and delivery in the City's Service Industrial zones. Cannabis related businesses associated with retail/dispensaries, cultivation, manufacturing, distribution, and delivery will be subject to a separation requirement of 1,500 feet from other cannabis related businesses, while testing facilities will be subject to a separation requirement of 500 feet from other testing facilities. All cannabis businesses are subject to review and approval of a Conditional Use Permit (CUP) by the Planning Commission. Commercial cannabis businesses must also meet State guidelines imposed by the Bureau of Cannabis Regulations and are subject to State licensing requirements. No commercial cannabis business may operate without first obtaining a City CUP and a license from the Bureau of Cannabis Regulations. Analysis Adult-Use and Personal Cultivation of Cannabis MAUCRSA permits the adult-use of cannabis, by persons over age 21, for recreational purposes. The new law also allows persons over the age of 21 to grow and maintain up to six (6) mature cannabis plants at their residence. The proposed ordinance addresses adult- use by reiterating state limitations, which prohibit cannabis use within 1,000 feet of a school, Staff Report ZOA 17-027 Cannabis Use and Regulations Page 3 of 5 August 1, 2017 daycare, or youth center, and restricts cannabis use similar to the restrictions in the City's Smoking Ordinance (P.D.M.C. Chapter 8.36). MAUCRSA allows local agencies to prohibit outdoor cultivation of cannabis plants for personal use at residences; however, local agencies cannot prohibit indoor cultivation. The Committee discussed this particular requirement at length and ultimately recommended that the ordinance permit outdoor personal cultivation citing safety concerns. The ordinance permits outdoor cultivation for personal use and limits cultivation to rear and side yard areas only and only where not visible from public streets. The ordinance also provides limitations for indoor cultivation, including requirements for proper ventilation and prohibits the use of certain flammable solvents, such as kerosene, gasoline, and butane, within the residence. Commercial Cannabis Businesses MAUCRSA establishes the Bureau of Cannabis Regulation as the State agency charged with licensing commercial cannabis operators in the State. The agency has created 20 distinct licensing types of commercial operators and requires that operators obtain a State license prior to operation. These 20 licenses generally fall into six (6) categories: retail dispensary, cultivation, testing, manufacturing, delivery, and distribution. The proposed ordinance; therefore, provides language related to the six (6) categories. The ordinance provides a definition for Commercial Cannabis Business and requires that all Commercial Cannabis Businesses obtain a CUP and State license prior to operation. By applying the CUP process, the Planning Commission will review and vet all cannabis operations prior to permit issuance. All Commercial Cannabis Businesses are limited to specific zoning districts in the City, are required to be separated by 500-1 ,500 feet, are required to apply best business practices, and must submit supplemental information with the CUP application. Permitted Locations Retail cannabis operations are conditionally permitted in all commercial zoning districts in the City except the Downtown Core Overlay zone. Retail cannabis is similar to other retail operations; therefore, is limited to commercial areas of the City. The ordinance prohibits cannabis businesses from the Downtown Core Overlay. Cultivators, manufactures, distributors, and delivery operations are conditionally permitted in the City's Service Industrial (SI) zones only. These businesses are similar to existing light industrial uses in the City; therefore, limited to similar locations. Testing facilities are conditionally permitted in the City's Office Professional (OP) and SI zoning districts. Testing facilities operate similar to other testing and laboratory uses that exist in OP zones. Because testing facilities are more conspicuous and similar to other testing operations, staff believes they are compatible with other professional office operations and should be allowed in similar zones. Staff Report ZOA 17-027 Cannabis Use and Regulations Page 4 of 5 August 1, 2017 Separation Requirements The ordinance requires retailers, manufactures, cultivators, deliverers and distributors to be at least 1,500 feet from another cannabis business. Separation requirements are measured from the outer extents of a business's lease space. In addition, no cannabis business is allowed within 600 feet of a school, daycare, or youth center, or on properties abutting a residence or park. The separation requirements ensure that sufficient opportunities for commercial cannabis businesses exist without permitting them to proliferate in a single location or in great numbers. Staff is proposing a 500-foot separation requirement is applied between testing facilities. Testing facilities provide for professional uses similar to existing testing and laboratory uses in the City. Because testing facilities have limited cannabis on site and are more discreet, a reduced separation distance is being proposed. Operational Requirements & Supplemental Application Information The ordinance requires applicants of a CUP to submit additional information for review and to commit to certain operational requirements. The additional application requirements will be presented to the Planning COmmisison as part of their review and consist of the following : 1. A background check for the applicant and highest ranking employee. 2. Business plan. 3. Exterior facade plan. 4. Open premise agreement. 5. Energy and water supply assessments. 6. A detailed security plan that includes: a. Use of product and inventory tracking software. b. Installation and operation of security cameras. c. Alarm systems monitored by independent third party. d. Product that is securely stored and not accessible to the general public. 7. Access plan and 24-hour emergency contact information. 8. A "community relations" plan notifying other business in the area of their operations. 9. Odor control. 10.Annual State license and City business license renewal. 11.An indemnity agreement. These requirements are in line with State guidelines and best practices employed in the industry. These requirements will be conditions on the business operations and any operator found in violation of these requirements could lose their ability to operate the business by revocation of the CUP. Staff Report ZOA 17-027 Cannabis Use and Regulations Page 5 of 5 August 1, 2017 This information is intended to identify legitimate cannabis businesses and ensure a professional and safe operation that is in line with community standards. These additional requirements will be reviewed by the Planning Commission as part of a CUP application. Environmental Review The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. The Director of Community Development therefore, is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Summary The proposed ordinance provides guidance and regulations for personal use and cultivation and commercial cannabis operations. Commercial operations are subject to approval of a CUP, and are required to be separated by specific distances from parks, residences, and other cannabis businesses. The ordinance allows the City to establish regulations that are compliant with State law. However, State law is constantly in flux, and staff anticipates amendments to the ordinance over the next few years to keep up with changes in the law. Findings of Approval Findings can be made in support of the project, and in accordance with the City's Municipal Code. Findings in support of this project are contained in the Planning Commission Resolution attached to this staff report. Submitted By: is Ceja, Prin al Planner Department Head: Ryan Stendell, Director of Community Development PLANNING COMMISSION RESOLUTION NO. 2706 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO THE CITY COUNCIL TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 MEDICAL CANNABIS USE TO CANNABIS USE AND REGULATIONS AND SECTION 25.16 COMMERCIAL AND INDUSTRAIL DISTRICTS AND SECTION 25.18 ONE ELEVEN DEVELOPMENT CODE TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ADOPT A NOTI -F EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALI- T CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted t e City o .`•-alm Desert ("City") by Article XI, Section 7 of the California Constitution, th has the polic ewer to regulate the use of land and property within the City in a man signed to promot R W blic convenience and general prosperity, as well as public health are, and safety; and g WHEREAS, adoption and enforcement of re. 1ve zoning regulation and other land use regulations lies within the City's police pow a a WHEREAS, California has ad sough ballo i.tive, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA• re a adu >: sonal and commercial use of cannabis, pursuant to local authority pre s ed in t ; a WHEREAS, th establi Ad Ho annabis Committee, comprised of industry represen comm, mem and City staff, to review a potential cannabis ordinance and to :� recomme tions for nges to the City's Municipal Code to allow and regulate canna siness Wo, 5 . he P • 5 g Commissio he City of Palm Desert, California, did on the 1s' dayA usi - ' . ho my noticed public hearing to consider changes to the City's Zon`Fl" Qrdinance to a can businesses in the City subject to approval of a Conditional Use'P , . it and certain r ation ..d WHEIREAS, the re-. ements established in the ordinance ensure that cannabis businesses ca ?{operate in ', City in a safe and limited manner, subject to licensing from the State Bureau d l;, nabi trol; and WHEREAS, t , Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution and laws of the State of California. PLANNING COMM ISSIOI. ..ESOLLITION NO. 2706 B. The California Constitution and Planning and Zoning Laws authorize cities to establish, by ordinance, the regulations imposed on certain business operations and that cannabis businesses can be conditioned and limited in the City. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Municipal Code amendment to Section 25.34.120 Cannabis Use and Regulations and 25.16 Commercial and Industrial Districts, and 25.18 One Eleven Development Code as shown in Exhibit "A", "B" and Exhibit "C" which is attached hereto and incorporated herewith. SECTION 3. Severabilit . If an section, subsec ' subdivision, paragraph, Y Y sentence, clause, or phrase in this ordinance or any part th is for any reason held to be unconstitutional or invalid or ineffective by any court of c el h isdiction, such decision shall not affect the validity or effectiveness of the rema' ing portion this ordinance or any part thereof. The Planning Commission hereby d s that it wo. ave passed each section, subsection, subdivision, paragraph, -n ence, clause, hrase thereof irrespective of the fact that any one (1) or subsections, subdivis paragraphs, sentences, clauses, or phrases be declared u stitutiona invalid, or in tive. SECTION 4. California Environmental Quality ing. The City of Palm Desert (City), in its capacity as the Lead enc under th ifornia Environmental Quality Act (CEQA), has determined that this dinance dment (ZOA) is exempt from CEQA review pursuant to Section 15 (c t the p sed action will not result in a direct or reasonable foreseeable indiret hysic a in environment, and Section 15061(b)3 in that the ZO ulate th e o ',, i d cannabis businesses is not a "project" and is not s QA re a Dire > of Community Development therefore, is recom ing tha a Planrr 5 Commission adopt a Notice of Exemption under the CEQA g- ines. PASSED, APPRu. E .,Q D the Planning Commission of the City of Palm Dese l". . rnia, egular m r; Field on the 15t day of August 2017 by the followin, t =AYES: NOE ABSENT: ABSTAIN: NANCY DELUNA, CHAIRPERSON ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMIS; V RESOLUTION NO. EXHIBIT A PDMC SECTION: 25.34.120 — Cannabis Use and Regulations This Chapter shall be known as the "Cannabis Use and Regulation Ordinance" for the City of Palm Desert. A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, personal cultivation, manufacturing, testing, distribution, transportation, delivery, dispensing, retail sale, and personal adult use of medicinal cannabis and non-medicinal cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 (CUA), the Medical Marijuana Program Act (MMPA), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) (collectively, "State Law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. It is the intent of the City to allow personal cultivation at residential properties and commercial cannabis permitees within city boundaries, subject to approval of special permitting, terms, conditions, confirmation of a state issued license, and in accordance with the provisions of this title. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. B. Definitions Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter. Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources: The California Business and Professions Code Section 19300.5 and Section 26001, The Compassionate Use Act of 1996 (CUA), The Medical Marijuana Program (MMPA), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act(MAUCRSA). "Applicant" means a person applying for a Conditional Use Permit whom will be the primary owner and operator for any Commercial Cannabis Business. "Cannabis" means all parts of the plant 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 cannabis. "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. 72500.00001\29696795.1 "Cannabis retailer" means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. "Cannabis manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or re-labels its container. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Commercial Cannabis Business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transporting, sale, dispensing, delivery or transport of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities for commercial use purposes. "Fully Enclosed and Secured Structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the Business & Professions Code. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. 72500.00001\29696795. 12 "Permittee" means any person granted a Conditional Use Permit under this Chapter. "Private Residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. "Sale" includes any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom such cannabis or cannabis product was purchased. "Testing Facility" means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Permit Required and Exemptions 1. Required i. All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit, City business license, and license from the Bureau of Cannabis Control prior to operation of any cannabis facility within the City. ii. Building permits for improvements associated with a Commercial Cannabis Business may be issued once an applicant has obtained approval of a Conditional Use Permit; however, a certificate of occupancy to operate will not be issued until said Commercial Cannabis Business has obtained, and provided the City proof, of a license issued by the Bureau of Cannabis Control as part of the City's Business License application. iii. Any Commercial Cannabis Business issued a Conditional Use Permit must provide the City with proof of a license issued by the Bureau of Cannabis Control prior to operation. Failure to maintain a license from the Bureau will result in revocation of the Conditional Use Permit and business license. iv. No Commercial Cannabis Business may operate in the City unless a license(s) from the Bureau of Cannabis Control has been issued and provided to the City's Community Development Department and Business License Division. v. A copy of the Bureau of Cannabis Control license, and any updates to the license, shall be provided to the Business License Division at the time of business license renewal. vi. Changes in license type, business owner, or operation will require an amendment to the approved Conditional Use Permit. 2. Exemptions i. Personal use, and cultivation of cannabis for personal use, is permitted outright on residential properties and subject to Subsection E of this ordinance and in accordance with the MAUCRSA. ii. Primary Caregivers engaged in the transportation of cannabis and cannabis related products to Qualified Patients for which they are the Primary 72500.00001\29696795.13 Caregiver are exempt from the requirement to obtain any special licensing from the City. iii. Any Cannabis Delivery operator, with a physical address outside the City is exempt from obtaining a Conditional Use Permit. The operator is required to obtain a business license with the City's Business License Division. D. Prohibited Activity 1. No Commercial Cannabis Business shall operate without first obtaining approval of: a Conditional Use Permit from the Planning Commission, a City issued business license, and the required State issued cannabis license from the Bureau of Cannabis Control. 2. No Commercial Cannabis Business shall operate within 600-feet of a school, daycare facility, or youth center as defined by this Ordinance and the MAUCRSA. 3. A Commercial Cannabis Business shall operate in accordance with the conditions adopted in the approved Conditional Use Permit and all conditions imposed by the Bureau of Cannabis Control. Commercial Cannabis Businesses shall only operate in designated zoning districts as identified in Section 25.16.030, 25.18.040 and within a fully enclosed and secured structure. 4. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. 5. Commercial Cannabis Businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth center. 6. Any activity generally prohibited by the AUMA, MCRSA, or other applicable State provisions related to Commercial Cannabis Businesses, and local ordinances. E. Personal Use and Cultivation Persons 21 years and older are permitted to use cannabis in accordance with the MAUCRSA, and subject to the City's Smoking Ordinance (PDMC 8.36). No special land use or business permits are required from the City for personal use and cultivation at or within a private residence. The following standards shall regulate personal use and cultivation: 1. Personal Use. Qualified patients and persons of legal age permitted to use cannabis in accordance with AUMA or MCRSA, and MAUCRSA, when it goes into effect, may do so on private property, out of public view, and in accordance with the City's "Regulations and Prohibitions of Smoking" Ordinance (PDMC 8.36). Generally, the use of cannabis is prohibited on City property, including 72500.00001\29696795.14 parks, common areas in City owned housing developments, and other public places. Smoking or use of cannabis is prohibited within 1,000 feet of a school or childcare facility. 2. Personal Cultivation — Residents in the City are permitted to cultivate cannabis on private residential property for personal use and in accordance with AUMA, MCRSA, and then MAUCRSA, when it goes into effect; subject to the following standards: i. Outdoor Cultivation a. Cultivation for personal use is only permitted on private residential property developed with at least one residential dwelling unit. No more than six (6) plants are permitted to be cultivated at a private residence. Property owners retain the ability to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site. b. Outdoor cultivation is limited to rear and side yard areas and only if screened by a solid block wall no less than six (6)feet in height. c. Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method. d. Outdoor cultivation within 600 feet of a school, daycare center, or youth center is prohibited. i. Indoor Cultivation a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the City's Building and Safety Department. b. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residences. F. Commercial Cannabis Businesses Commercial Cannabis Businesses are defined in Subsection B of this Ordinance and do not include businesses that only sell cannabis related paraphernalia. All Commercial Cannabis Businesses shall be regulated by the following: 1. Required Permits — All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit in accordance with PDMC Section 25.72.050 "Conditional Use Permit" Commercial Cannabis Businesses must also obtain a business license with the City's Business License Division and provide proof of a cannabis license issued by the Bureau of Cannabis Control in accordance with Section C of this Ordinance. Failure to provide proof of a state issued cannabis license within one year of Conditional Use Permit approval will render the Conditional Use Permit invalid. 72500.00001\29696795.15 2. Location —Commercial Cannabis Businesses are permitted in the City's commercial, industrial, and downtown zoning districts as identified in Section 25.16.030 "Allowed Land Uses and Permits Requirements" and Section 25.18.040 "Land Use and Permit Requirements" of the Palm Desert Municipal Code. In accordance with MAUCRSA, no Commercial Cannabis Business is permitted within 600 feet of a school, childcare facility, or youth center. Commercial Cannabis Businesses are prohibited from operating on properties that abut public parks, single-family residential properties, or are located within the City's Downtown Core Overlay District. 3. Separation Requirement — Commercial Cannabis Businesses shall conform to the following separation requirements: a. No Conditional Use Permit shall be issued to a Commercial Retailer that is located within 1,500 feet of another approved Commercial Cannabis Business. b. Commercial Cannabis Businesses whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City's Service Industrial zoning district only, shall be separated by 1,500 feet from another approved Commercial Cannabis Business. C. Commercial Cannabis Businesses whose main business function is to operate as a testing laboratory are subject to a separation requirement of 500 feet and are exempt from the separation requirements listed above. d. No Conditional Use Permit will be issued for Commercial Cannabis Business located within 600 feet of a school, daycare center, youth center. e. With the exception of Commercial Cannabis Businesses whose business is located within a mixed-use building or whose primary business function is as a testing laboratory, no Conditional Use Permits shall be issued for commercial and industrial properties abutting public parks or private residences. f. All separation requirements will be measured from the outer extents of the Commercial Cannabis Businesses lease space to the outer extents of another Commercial Cannabis Businesses lease space, or to the property line of a school, daycare center and youth center. 4. Operational Requirements a. Commercial Cannabis Businesses shall be conducted only within a Fully Enclosed and Secured Structure that is not accessible to minors. 72500.00001\29696795.16 b. Commercial Cannabis Businesses shall not create nuisance issues such a dust, glare, heat, noise, smoke, odor, and shall not be hazardous to use or storage of materials, processes, products, or wastes. C. All cannabis and cannabis products shall be kept in a secured manner during all business and nonbusiness hours. d. Commercial Cannabis Businesses shall utilize product and inventory tracking software and accounting software that is in-line with reasonable business practices within the industry. e. Commercial Cannabis Businesses shall install and operate security cameras at their place of business as follows: i. Security cameras shall be installed and maintained in good condition at all times. The areas to be covered by the security cameras include, but are not limited to sale, cultivation, manufacturing, processing, transportation, and distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. ii. Cameras shall be in use 24 hours per day, seven days per week. iii. Commercial Cannabis Business permittees shall maintain at least 120 concurrent hours of digitally recorded documentation. iv. Any disruption in security camera images shall be cured expeditiously and in good faith. f. Permittees shall install alarm systems that are operated and monitored by an independent third party security company. g. All storage areas shall be locked at all times and under control by the permittee's staff. h. All cannabis and cannabis products shall be securely stored and not accessible to the general public. 5. Conditional Use Permit Submittal Requirements— In addition to the requirements listed in the Conditional Use Permit, all Commercial Cannabis Businesses shall submit the following information in conjunction with the review of a Conditional Use Permit: a. Background Check. The applicant is required to provide names, addresses, and relevant criminal histories of those with an ownership interest of twenty-five percent (25%) or more, and for themselves and the highest ranking employee (manager, director, etc...) at the Commercial Cannabis Business. The background check must be submitted on a form prescribed by the City and can be obtained at the City's Business Licensing Division. b. Business Plan. To be submitted for operational, banking, and personal procedures to ensure adequate business knowledge, modeling and 72500.00001\29696795.17 support. C. Exterior Fagade. Renderings of the business fagade shall be provided and reviewed as part of the Conditional Use Permit. Building fagade plans shall include renderings of the exterior building elevations for all side of the building. All building facades shall be tastefully done and in keeping with the high architectural quality and standards of the City of Palm Desert. Because State Law limits certain advertising, the business fagade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. d. Open Premises Agreement. By receiving approval of a Conditional Use Permit the permittee of a Commercial Cannabis Business is agreeing to open the business to City officials at any time during business hours for inspection and to review that the permittee is operating in accordance with the conditions of this title and the Conditional Use Permit. e. Cultivation permittees shall supply energy and water assessments for review as part of the Conditional Use Permit process. These assessments shall estimate the total amount of annual electrical and water use required to operate the Commercial Cannabis Business. Review of the assessment may require the applicant to supplement electrical and water use at the site to minimize adverse environmental impacts. f. Security Plan. All Commercial Cannabis Businesses shall provide a security plan and demonstrate compliance with the security camera provisions outlined in Section F4 of this Ordinance. g. Access Plan and 24-hour Emergency Contact Information. The applicant shall provide contact information including name, email, and 24-hour accessible phone number to the Community Development Department and Sheriffs Department. h. Community Relations. The applicant shall provide a 24-hour contact number to surrounding property owners within 100-feet of the permittees location. By issuance of a Conditional Use Permit the permittees of a Commercial Cannabis Business agrees to respond to inquiries, concerns, and complaints by surrounding property owners. i. Odor Control. The applicant shall identify methods for ensuring odors emanating from a Commercial Cannabis Business do not interfere with surrounding businesses and the public realm. Odor control methods, include, but are not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. j. Annual License Renewal All Commercial Cannabis Businesses are required to provide a valid license issued from the State Bureau of Cannabis Control at time of business license renewal. Business license are required to be renewed on an annual basis. 7 2500.00001\29696795.18 k. Indemnification Agreement. All Commercial Cannabis Businesses that obtain a Conditional Use Permit shall, and by acceptance of the permit, agree to hereby indemnify and hold harmless the City, its officers, agents and employees from any and all damages, claims, liabilities, costs including attorney fees, suits or other expenses resulting from and arising out of said commercial cannabis business operations. G. Penalties for Violation No person, whetheras principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this section. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this section, any condition caused or permitted to exist in violation of any of the provisions of this section is declared a public nuisance and may be abated as provided under the Municipal Code or State Law, and may result in revocation of a Conditional Use Permit. H. Grounds for Denial, Revocation or Suspension The issuance of a Conditional Use Permit for the operation of a Commercial Cannabis Business may be denied, and an existing permit may be revoked or suspended, if the permittee or applicant: a. Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant. b. Has been convicted of any offense related to the use, sale, possession or transportation of narcotics or habit-forming drugs. C. Has been convicted of any offense punishable as a felony, or has been convicted within a 10 year period immediately preceding the crime of theft in either degree. d. Failed to pay required taxes and business license fees. e. Failure to maintain a valid State issued license from the Bureau of Cannabis Control. f. Has failed to comply with the conditions imposed on the Conditional Use Permit. g. Has violated any provision of this chapter. 72S00.00001\29696795. 19 PLANNING COMMISSIG.. RESOLUTION NO. Exhibit B Chapter 25.16 — Commercial and Industrial Districts Sections in This Chapter 25.16.010 Purpose.................................................................................................16-1 25.16.020 Characteristics of the Commercial and Industrial Districts ....................16-1 25.16.030 Allowed Land Uses and Permit Requirements......................................16-2 25.16.040 Specific Use Standards.........................................................................16-3 25.16.050 Development Standards........................................................................16-6 25.16.010 Purpose The purpose of this chapter is to establish commercial and industrial zoning districts in the City, along with allowed use and development standards applicable to those districts. These districts are consistent with and implement the City's General plan commercial and industrial district and center land use categories as indicated in Table 25.04-1 (Zoning Districts). 25.16.020 Characteristics of the Commercial and Industrial Districts The following descriptions of each district identify the characteristic uses, intensity of uses, and intended level of development for that district. A. Office Professional (OP). This district is intended for various levels of intensities for business, office, administrative, research and development, and/or professional land uses. This district is characterized by urban streetscapes with formal tree arrangements and larger block sizes. B. Planned Commercial (PC). The PC districts provide flexibility for commercial and mixed-use development. Generally, these districts are characterized as coordinated projects that integrate compatible commercial and residential mixed-uses. PC districts balance the need for automobile parking and pedestrian connections that are organized around walkable streetscapes and other pedestrian amenities. PC districts are further refined based on property size, proximity to residential uses, and as described below: 1. Specialty Commercial Center (PC-1). The specialty commercial center provides for small-scale commercial development that primarily serves surrounding neighborhoods and other immediate land uses. This district is characterized as being located in close proximity to residential development and, as such, provides high levels of convenient pedestrian access. This district also promotes the development of mixed-use (10.0 — 15.0 du/ac) as a transition between residential uses and other development types. 2. District Commercial Center (PC-2). The district commercial center provides convenient shopping opportunities outside of the downtown core area. This PC district provides large-format retail areas for the broader community and provides flexibility for the integration of mixed-use (10.0 — 15.0 du/ac) on upper floors of commercial buildings. The center is also characterized by traditional parking lots 16-11Page Chapter 25. 16 Commercial and Industrial Districts with formal tree arrangements and spacing and sufficient space for pedestrian areas and open space. 3. Regional Commercial Center (PC-3). The regional commercial center provides a unified area for commercial uses which offer a wide range of goods and services, including comparison and convenience shopping, entertainment, cultural, and recreational uses. The district provides for large-scale, large-format, commercial development that serves the broader region and is generally located around major intersections and properties in proximity to freeway overpasses. Although this district is predominately commercial, mixed-use (10.0 — 15.0 du/ac) is allowed and should be integrated into developments on the upper floor. 4. Resort Commercial Center (PC-4). The resort commercial center allows for the development of a range of entertainment, hospitality, restaurants, and recreational facilities with related commercial uses to serve visitors to the City. The district is characterized by multi-story development that provides recreation and entertainment amenities in accordance with its urban/natural setting, and provides flexibility to integrate mixed-use (10.0 du/ac). C. Service Industrial (SI). This district allows for the development of traditional business parks that allow for manufacture, distribution, research and development, and service of products intended for use within Palm Desert and surrounding communities. The district is characterized as having a more urban setting with buildings located near roadways, shared and connected parking, and streetscapes with formal street tree arrangements. 25.16.030 Allowed Land Uses and Permit Requirements Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed uses and corresponding permit requirements for commercial and industrial districts and all other provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions). The "Special Use Provisions" column in the table identifies the specific chapter or section where additional regulations for the specific use type are located within this ordinance. Use regulations in the table are shown with representative symbols by use classification listing: "P" symbolizes uses permitted by right, "A" symbolizes uses that require approval of an administrative use permit, "C" symbolizes uses that require approval of a conditional use permit, and "N" symbolizes uses that are not permitted. Uses that are not listed are not permitted. However, the Commission may make a use determination as outlined in Section 25.72.020 (Use Determinations). Chapter 25. 16 Commercial and Industrial Districts 16-21Page PLANNING COMMISSIG,. RESOLUTION NO. Table 25.16-1: Use Matrix for Commercial and Industrial Districts Commercial/Industrial District (P=Permitted;A=Administrative Use Special Use Permit;C=Conditional Use Permit; Provisions N=Not Permitted) OP PC-1 PC-2 PC-3 PC-4 SI Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.E Dwelling, duplex C C C C C C 25.16.040.E Dwelling, multifamily C C C C C C 25.16.040.13 Dwelling, single-family C C C N C C 25.16.040.E Group home C C N N C C 25.16.040.13 Single-room occupancies N N N N N C Homeless Shelter N N N N N P Recreation, Resource Preservation,Open Space,and Public Assembly Uses Amusement facility, indoors N N C C C N Amusement facility, outdoors N N N C C N Community facility N N N N N P Day care center N C C C C N Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility, outdoor N N N P P N Institution, educational C C C N N C Institution,general C N C N N C Institution, religious C N C N N C Open space(developed or natural) N P P N P N Recreation facility, commercial N N P P P N Recreation facility, private N N N P P N Theater/auditorium N N I P P N N Utility, Transportation,Public Facility,and Communication Uses Commercial communication tower C C C C C C 25.16.040.0 Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility(utility or service) N N N N N P Utility facility N N C N N P 16-31Page Chapter 25. 16 Commercial and Industrial Districts Retail,Service,and Office Uses Adult entertainment N N N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P Cannabis Retail N C C C C N 25.34.120 Cannabis Testing Facilities C N N I N N C 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P P P N N Grocery store N P P P N N 25.16.040.F Health club,gyms or studios N A P P P C Hotel N A A A P N Liquor store N P P P N N Liquor, beverage and food items shop N P P P P N Medical,clinic P N P P N N Medical, office P P P P N N Medical, hospital N N N N N C Medical,laboratory P N N N N P Medical office, accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office, professional P N P P P P Office, local government P N N N N P Office,travel agency P P P P P N Outdoor sales N N A A A A Personal services N P P P P N Restaurant A C C C P C 25.16.040.E/H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N Time-share project N N N C C N Automobile and Vehicle Uses Chapter 25. 16 Commercial and Industrial Districts 16-41Page PLANNING COMMISSION RESOLUTION NO. Automotive rental agency N N N N P P Automotive gasoline station N N C C N C 25.34.090 Automotive service facility N N C C N P 25.34.090 Automotive sales new and used(Outdoor/Indoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility N N N N N P 25.16.040.1 Industrial,Manufacturing,and Processing Uses Cannabis Cultivation N N N N N C 25.34.120 Cannabis Delivery N N N N N C 25.34.120 Cannabis Distribution N N N N N C 25.34,120 Cannabis Manufacturing N N N N N C 25.34.120 Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N N N N P Temporary Uses See Section 25.34.080 The establishment may be permitted with an Administrative Use Permit but may be elevated to a Conditional Use Permit at the discretion of the ZA based on:parking,traffic,or other impacts. 25.16.040 Specific Use Standards The following provisions apply as indicated to the uses listed in Table 25.16-1 (Use Matrix for Commercial and Industrial Districts): A. Caretaker Housing. Permitted only when incidental to and on the same site as a permitted or conditional use. B. Residential (mixed use). Residential uses may be established and maintained to be compatible with the permitted or the approved conditional uses in the vicinity. C. Commercial Communication Tower. All communication towers and antennas shall satisfy the requirements of Section 25.34.130 (Communication Tower and Antenna Regulations). 16-51Page Chapter 25. 16 Commercial and Industrial Districts D. Adult Entertainment. All uses defined as adult entertainment are required to meet the provisions established by Section 25.34.110 (Adult Entertainment Establishments). E. Commercial (ancillary). Applicable only to office and industrial complexes that occupy a minimum of two acres. Restaurant uses shall not exceed 10 percent of the gross leasable floor area and the total ancillary commercial uses, including restaurants, shall not exceed 25 percent of the gross leasable floor area of the complex. A Conditional Use Permit or Administrative Use Permit is required to review land-use compatibility and to ensure that adequate parking exists to serve the commercial use. F. Grocery Stores. Limited to a maximum building size of 10,000 square feet in PC-1, 30,000 square feet in PC-2, and 60,000 square feet in PC-3. G. Medical Offices, accessory. Permitted only when ancillary to and in conjunction with the operation of a hotel. H. Restaurants. Drive-through and drive-in facilities permitted by a conditional use permit as follows: 1. Permitted locations. i. Within Freeway Commercial Overlay District ii. On the following streets and as indicated in Figure 25.10-2: Monterey Avenue and Portola Avenue from the northern city boundary to the north side of Gerald Ford Drive. 2. Development standards. i. Drive-through lanes and window facilities shall be designed in a manner that they are screened and/or not visible from surrounding public streets. ii. Drive-through vehicle queue must be permanently screened and/or not visible from surrounding public streets. I. Vehicle Service and Storage Facility. The storage facility must be completely screened. 25.16.050 Development Standards The development standards included in Table 25.16-2 (Commercial and Industrial District Development Standards) are applicable to commercial and industrial districts. These standards, along with other development standards (e.g., landscaping requirements, signs, and parking standards) located in the zoning ordinance, are intended to assist property owners and project designers in understanding the City's minimum requirements and expectations for high-quality development. A. Special setback requirements. In addition to the setback requirements in Table 25.16- 2 (Commercial and Industrial District Development Standards) the following special setback provisions apply: 1. On interior lots in the PC zone districts, setbacks shall be the lesser of the setback requirement listed in Table 25.16-2 (Commercial and Industrial District Development Standards). For exterior lots or projects perimeter adjacent to public streets the setback standards below shall apply. Said setbacks shall be measured from the property line. 2. Building setbacks from planned street lines: Chapter 25. 16 Commercial and Industrial Districts 16-61Page PLANNING COMMISSII RESOLUTION NO. Table 25.16-2: Setbacks from Planned Street Lines Street Type Setback Distance Freeway 50 feet Major 32 feet Arterial 32 feet Collector 25 feet Local 25 feet 3. Where commercial districts abut a residential district, a fence or wall 6 feet in height shall be located adjoining the property line except adjoining a required front yard. All commercial district property lines adjoining a residential district shall be landscaped with plant materials for an area 10 feet in depth. 4. All nonpaved areas shall be landscaped and treated or maintained to eliminate dust. B. Exceptions: Development standards within the PC districts may be modified through the precise plan process as specified in Section 25.72.030Special standards within the Service Industrial (SI) district. Sound emanating from industrial properties shall be muffled so as not to become objectionable due to intermittence, beat frequency, or shrillness. The measurements of sound shall be measured at the lot lines and shall be measured to decibels with a sound level meter and associated octave band filter, manufactured according to standards prescribed by the American Standards Association. Maximum permissible sound pressure levels shall comply with the limits at table 25.16-2 and the following standards: Table 25.16-3: Maximum Permitted Decibels Octave Band in Cycles- Adjacent Residential District Lot Line of Use in the SI Second(decibels) Boundaries(decibels) Zone(decibels) 0-75 72 79 76-150 59 74 151-300 52 66 301-600 46 59 601-1200 42 53 1201-2400 39 47 2401-4800 34 41 Above 4800 32 39 1. The maximum sound pressure level in decibels shall be 0.002 dynes per square centimeter. 16-71Page Chapter 25. 16 Commercial and Industrial Districts 2. Toxic gases or matter shall not be emitted which can cause any damage to health, animals, or vegetation, or other forms of property, or which can cause any excessive soiling beyond the lot lines of the use. 3. Vibration from any machine, operation, or process which can cause a displacement of .003 of 1 inch as measured at the lot lines of the use shall be prohibited. Shock absorbers or similar mounting shall be allowed which will reduce vibration below .003 of 1 inch as measured at the lot lines. 4. Glare and heat from any source shall not be produced beyond the lot lines of the use. 5. Storage of refuse, trash, rubbish, or other waste material outside a permanent building shall be kept in enclosed containers in areas other than the front and side yards. 6. Lighting, including spotlights, floodlights, electrical reflectors, and other means of illumination for signs, structures, landscaping, parking areas, loading and unloading areas, and the like shall be shielded, focused, directed, and arranged as to prevent glare or direct illumination on streets or adjoining property. 7. Unless specific additional uses are permitted by the certificate of occupancy, the use of radioactive materials within the SI district shall be limited to measuring, gauging and calibration devices, as tracer elements, in x-ray and like apparatus, and in connection with the processing and preservation of foods. In no event shall radioactivity, when measured at each lot line, be in excess of 2.7 x 10-11 micro curies per milliliter of air at any moment of time. 8. Electrical and electronic devices and equipment shall be suitably wired, shielded, and controlled so that in operation they shall not, beyond the lot lines, emit any electrical impulses or waves which will adversely affect the operation and control of any other electrical or electronic devices and equipment. (Ord. 96 § 1, 1975, Exhibit A § 25.20-7.16) C. Special standards within the Office Professional (OP) district. 1. When adjacent to single-story residential, the rear and exterior side yard setbacks shall be increased by 6.43 feet for each foot of building height above 18 feet up to 25 feet tall. See table below: Table 25.16-4: Additional Setback in OP District Height Setback Distance 19 feet 26.43 feet 20 feet 32.86 feet 21 feet 39.29 feet 22 feet 45.72 feet 23 feet 52.15 feet Chapter 25. 16 Commercial and Industrial Districts 16-81Page PLANNING COMMISSIM RESOLUTION NO. • 24 feet 58.58 feet 25 feet 65 feet 2. Second-story Windows: Second-story windows are allowed to face adjacent single-story residential zones with sufficient screening; either with landscaping or another method as approved through the precise plan process. 16-91Fage Chapter 25. 16 Commercial and Industrial Districts Table 25.16-4: Commercial and Industrial District Development Standards Commercial/Industrial District OP PC-1' PC-21 PC-31 PC-4' SI Lot Dimensions Lot size, min 15,000 sf 3 ac 5 ac 30 ac 4 ac 20,000 sf Lot size, max None 10 ac 20 ac None None None Lot width, min 70' None None None No min 100, Lot depth, min 140' None None None No min 100, Setbacks Front yard, min 12 in 15 — — — 30' 20' a Side yard, min (interior/exterior) 0'/20' 3,4'' 0'/20'3'4 0'/20'3,4 — 15, 0'/10'5 Street side yard, min 12' min, 15' _ _ _ — 10, av g Rear yard, min 0'120, 3.4 0'/20'3'4 0'/20'3,4 — 20' 01/25'5 Coverage Floor Area Ratio 0.75 0.5 1.0 1.0 0.10 0.75 Residential Density Range 10.0— 10.0— 10.0— (mixed-use) 10.0 15.0 15.0 15.0 10.0 - Building Measurements Height, max (single-use) 40', 3 stories 35', 2 35', 2 35', 2 55', 4 40', 3 stories stories stories stories stories Height, max (mixed-use) 40 40 40 40 55 No. of Stories(mixed-use) 3 3 3 3 4 - Building size, max8 — 10,000 sf 30,000 sf — — — — Chapter 25. 16 Commercial and industrial Districts 16-101Page PLANNING COMMISSION RESOLUTION NO. Commercial/Industrial District OP PC-11 PC-21 PC-3' PC-41 SI Landscaping Required landscaping, min 15% 15% 15% 20/0 o 20/o 0 9 _ percentage of lot area Depth of landscaping in street 10, 10, 20' 30' 10, — — setback area, min Notes: 1. Development standards may be modified through the precise plan process as specified in Section 25.72.030. 2. See Section 25.16.050 A(Special Setback Requirements). 3. When an OP, PC-1 or PC-2 zone is adjacent to a commercially or industrially zoned property,the setback is zero. 4. When an PC-1,or PC-2 zone is adjacent to a residentially zoned property, the minimum required setback for a commercial structure or a joint use commercial and residential structure is equal to the building's height. 5. When an Sl zone is adjacent to or across the street from residentially zoned property,the minimum side setback is10 feet and the minimum rear setback is 25 feet. 6. The side yard setback may be 0 feet where the main building structure on the same lot line of the abutting parcel is set back at 0 feet and both parcels are developed at the same time. 7. When adjacent to single-story residential, see Section 25.16.050 E(Additional Setback in OP District). 8. This standard refers to the maximum area for any single commercial enterprise. 9. For hotels, a minimum of 25 percent of the site area must be usable landscaped open space and outdoor living and recreation area with an adequate irrigation system. 16-111Page Chapter 25. 16 Commercial and Iridu .strial District Exhibit C - 25.18.040 Land Use and Permit Requirements Amend Table 25.18-1. "Use Matrix for Downtown Districts" to the following Land Use Zone I Special Use Provisions D D-O DE DE-0 Retail, Service,and Office Uses Cannabis Retail C N N N 25.34.120 Cannabis Testing Facilities C FN N N 25.34.120 CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 17-027 NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 "MEDICAL CANNABIS USE" TO "CANNABIS USE AND REGULATIONS" AND SECTION 25.16 "COMMERCIAL AND INDUSTRIAL DISTRICTS" TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project" and is not subject to CEQA review. The Director of Community Development therefore, is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Project Location: City-wide Code Amendment Description: Section 25.34.120 will be retitled to "Cannabis Use and Regulations" to reflect the allowance of both medicinal and adult use of cannabis in accordance with the Medical Cannabis Regulations and Safety Act (MCRSA) and the Adult Use of Marijuana Act (AUMA) approved by the California voters. The City's Ordinance will allow for retail and dispensary cannabis uses within the City's commercially zoned property, testing facilities within the City's Service Industrial and Office Professional zoned properties; and cultivation, distribution, and delivery in the City's Service Industrial zones. All cannabis related businesses will be subject to a separation requirement of 1,500 feet from other cannabis related businesses, and review and approval of a Conditional Use Permit (CUP). Cannabis businesses must also meet State guidelines imposed by the Bureau of Medicinal Cannabis Regulations and are subject to State licensing requirements. Recommendation: Staff is recommending that the Planning Commission adopt a resolution supporting the changes to Zoning Ordinance, and allow the item to move forward to a public hearing with the City Council. Public Hearing: The public hearing will be held before the Planning Commission on August 1, 2017, at 6:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from July 20, 2017 to August 1, 2017. Public Review: The ZOA is available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to, the Planning Commission hearing. All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 eceja@cityofpalmdesert.org PUBLISH: DESERT SUN RYAN STENDELL, Secretary JULY 20, 2017 Palm Desert Planning Commission 2 NOTICE OF EXEMPTION TO: FROM: City of Palm Desert ❑ Office of Planning and Research 73-510 Fred Waring Drive Palm P. O.Box 3044,Room 113 Desert,CA 92260 Sacramento,CA 95812-3044 ® Clerk of the Board of Supervisors 2724 Gateway Dr,Riverside, or CA 92507 County Clerk County of Riverside 1. Project Title: I Zoning Ordinance Amendment 17-027—Amendment to the City Municipal Code Section 25.34.120 Cannabis Use and Regulations 2. Project Applicant: City of Palm Desert 3. Project Location—Identify street address and I City-wide cross streets or attach a map showing project site (preferably a USGS 15' or 7 1/2'topographical map identified by quadrangle name): 4. (a)Project Location—City.Palm Desert (b) Project Location—County. Riverside 5. Description of nature,purpose, and beneficiaries The City amends its zoning ordinance to permit commercial of Project: cannabis businesses in the City's industrial,office,and commercial zoning districts,subject to review and approval of a Conditional Use Permit. 6. Name of Public Agency approving project: City of Palm Desert I 7. Name of Person or Agency undertaking the Eric Ceja,Principal Planner—City of Palm Desert project,including any person undertaking an I activity that receives financial assistance from the j Public Agency as part of the activity or the person receiving a lease,permit,license,certificate,or I other entitlement of use from the Public Agency as part of the activity. 8. Exempt status: (check one) (a) ❑ Ministerial project. (Pub.Res.Code§21080(b)(1); State CEQA Guidelines§ 15268) (b) ® Not a project. (c) ❑ Emergency Project. (Pub. Res. Code§ 21080(b)(4); State CEQA Guidelines§ 15269(b),(c)) (d) ❑ Categorical Exemption. State type and section number: (e) ❑ Declared Emergency. (Pub.Res. Code§ 21080(b)(3); State CEQA Guidelines § 15269(a)) (fl ❑ Statutory Exemption. State Code section number: i (g) ❑ Other. Explanation: 9. Reason why project was exempt: Notice of Exemption FORM"B" 10. Lead Agency Contact Person: Eric Ceja,Principal rlanner Telephone: (760)346-0611 11. If filed by applicant: Attach Preliminary Exemption Assessment(Form"A")before filing. 12. Has a Notice of Exemption been filed by the public agency approving the project? Yes ❑ No❑ 13. Was a public hearing held by the lead agency to consider the exemption? Yes® No❑ If yes, the date of the public hearing was: August 24,2017 Signature: Date: Title: ® Signed by Lead Agency ❑ Signed by Applicant Date Received for Filing: (Clerk Stamp Here) Authority cited: Sections 21083 and 21100,Public Resources Code. Reference: Sections 21108,21152,and 21152.1,Public Resources Code. Notice of Exemption FORM"B" MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja responded two weeks, which would be the Planning Commission meeting scheduled for August 15. Commissioner Greenwood interjected that he would be interested to have formal comments and review by the ARC in regard to the Monterey Crossing sign design prior to the Planning Commission meeting on August 15. Mr. Ceja replied that the ARC will meet on August 8, and he would add the Monterey Crossing sign design to their agenda. Vice Chair Pradetto moved to, By Minute Motion, continue Case No. ZOA 17-070 to August 15 so City staff could further study the ZOA; and receive formal comments and review by the ARC regarding the design for the Monterey Crossing freeway- oriented monument sign. Motion was seconded by Commissioner Greenwood and carried by a 4-0-1 vote (AYES: DeLuna, Greenwood, Gregory, and Pradetto; NOES: None; ABSENT: Holt). D. REQUEST FOR CONSIDERATION to adopt a resolution recommending approval to the City Council to adopt a Zoning Ordinance Amendment to amend and retitle Palm Desert Municipal Code Section 25.34.120 Medical Cannabis Use to Cannabis Use and Regulations and Sections 25.16 Commercial and Industrial Districts and 25.18 One Eleven Development Code to allow for cannabis businesses within the City, subject to a Conditional Use Permit; and adopt a Notice of Exemption under the California Environmental Quality Act. Case No. ZOA 17-027 (City of Palm Desert, California, Applicant). The Planning Commission was provided with a PowerPoint presentation and an oral interpretation of the staff report by Mr. Ceja (staff report is available at www.cityofpalmdesert.org). He noted that it has taken City staff over a year to draft the cannabis ordinance due to the constant changes at the State level. Consequently, the Commission may see the cannabis ordinance again in a relatively short time. Staff recommended approval to the City Council of the ZOA for adult-use of cannabis and commercial cannabis operations. He offered to answer any questions. Commissioner Greenwood asked if the definition of commercial also pertains to retail. Mr. Ceja replied that is correct. Commissioner Greenwood inquired if there is a map of the Downtown District Overlay that has been omitted from retail opportunities. He asked where the retail opportunities exist within the City of Palm Desert. 13 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja replied that he does not have a map of the Downtown District Overlay. He referred to a map displayed on the screen and pointed to commercial centers in the City that could accommodate a cannabis business. He noted that a cannabis business is not allowed where there is red hatching indicated on the map. Commissioner Gregory asked staff to explain the difference between the orange hatching and the red areas without hatching indicated on the map. Mr. Ceja explained that there a various degrees of development intensity. The orange areas are allowed for mixed-use up to three stories with a mix of commercial, primarily on the ground floor. The orange areas with the hatching are in an edge overlay, which is the transition from multi mixed-use and multi- story down to two stories and primarily residential uses. He said the red areas would allow for three-story mixed-use; predominantly for commercial uses. Chair DeLuna pointed to the plain red areas along El Paseo, and asked if the areas could be retail outlets for cannabis. Mr. Ceja replied yes. Chair DeLuna stated that there are some locations where the City is entertaining mixed-use developments, such as a building with retail on the first floor and residential above. She asked if the building would automatically be exempt from allowing a cannabis business since residential units would be attached to the building. Mr. Ceja responded that the ordinance was written to exempt mixed-use development so the City would not shut down everything on Highway 111 or El Paseo to cannabis if it is part of a mixed-use development. However, you can still have a cannabis business on the ground floor. Chair DeLuna affirmed that there could be cannabis stores along El Paseo. Mr. Ceja responded that staff has seen very high-end cannabis retail operations that could potentially be a good fit for El Paseo. According to State statute, Chair DeLuna asked staff to define a school. In relation to cannabis, Mr. Ceja believed that the State defines a school as K to 12 facilities. Chair DeLuna noted that there are five post-secondary schools in Palm Desert. She asked staff to show her where cannabis retail businesses could possibly be permitted that is within a 600-foot radius of the post-secondary schools. 14 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja referred to the map to show the locations of the post-secondary schools and the potential locations of a cannabis business. Vice Chair Pradetto asked Chair DeLuna if they should intensify the allowable number cannabis dispensaries near the college campuses. Chair DeLuna remarked no. She stated that post-secondary schools have under aged students. However, she would address that issue when they get to the Commissioner's comments. In regard to the people that want to grow marijuana in their backyard, she inquired if the City's Code Enforcement Division would be the enforcing agency. Mr. Ceja replied yes. Chair DeLuna asked if it would require a complaint from a neighbor or interested party for Code Enforcement to check a home for marijuana plants. Mr. Ceja responded that it is not the practice of Code Compliance officers to enter backyards. There would have to be a complaint for Code Compliance to respond. Chair DeLuna commented that day care and youth centers are loosely defined. She asked staff how many day care and youth centers are located within 600 feet of a cannabis retail business. Mr. Ceja replied that he does not have a number of day care or youth centers that would be located within 600 feet of a cannabis business. He reiterated that a cannabis business would not be allowed to be within 600 feet of the centers. Chair DeLuna inquired if day care centers include pre-schools. Mr. Ceja replied that is correct. Commissioner Greenwood said the map indicates a 1 ,000-square-foot commercial buffer. He asked what the difference is between 1 ,000 square feet and 1 ,500 square feet from adjacent dispensaries. Mr. Ceja responded that the red circles on the map indicate 1 ,000 square feet, and the blue circles indicate 1 ,500 square feet. Therefore, essentially all the red circles would be enlarged to match the blue circles to further limit commercial cannabis. Chair DeLuna inquired if there were any reasons or thoughts given for allowing retail sales of cannabis along El Paseo. Mr. Ceja replied yes. He explained that there are some smoke shops on El Paseo that seem to fit in perfectly well with El Paseo. Staff also saw other 15 GAPlanning\Monica OReilly\Planning Comm ission\2017Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 cannabis retail operations that could be high-end and specialized and fit in well with El Paseo. The Conditional Use Permit process will ensure that a cannabis retail operation would be an appropriate use on El Paseo. Commissioner Greenwood asked if staff has completed an analysis in regard to looking at the restrictions as it applies to schools, day cares, etc. as well as the 1 ,500-square-foot radius. He also asked how many dispensaries would be allowed within the 111 Corridor. Mr. Ceja responded that he does not have a number of dispensaries that would be allowed within the 111 Corridor. Due to the definition of a youth center and how broad that is, it has been difficult to identify the location for a dispensary within the 111 Corridor. He noted that the maps with the red circles gave the Cannabis Committee an idea of approximately how many dispensaries could be permitted. Commissioner Gregory voiced that the cannabis ordinance is a living document, and he would not be surprised if there is an amendment. The City has to start somewhere and see what happens. Commissioner Greenwood conveyed he spent a lot of time working on the General Plan Update process. He also sat on the Cannabis Committee. Cannabis is new for a lot of people and there tends to be a little bit of a stigma. He felt that time would show cannabis retail establishments are businesses like any other business and it will go by the wayside. To say that the cannabis ordinance is a living document, the Planning Commission may see some of the restrictions become lesser in the areas along the 111 Corridor. He questioned why they are not opening the 111 Corridor since there is a 1 ,500-square-foot requirement, the same goes for some of the other areas. Chair DeLuna declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. CHRISTOPHER CRANFILL, Palm Desert, California, stated he is in favor of the cannabis ordinance. However, he is against some of the proposed restrictions. He said restricting anchoring locations is going to create a hole where the City will wind up with cannabis zones. The cannabis zones would create overpriced properties, which will mea more buildings that sit empty for a longer period of time. He expressed that s�nergy is huge. Palm Desert has a huge population, it is the center of the Coachella Valley, and it is the retail center of the Coachella Valley. Palm Desert also created a very good environment and it has very high standards. For those reasons, the cannabis industry would like to see their business in Palm Desert. He stated that cannabis was voted in by the people in California, therefore, it is something that the people want. If the City is concerned with the visibility of cannabis retail businesses, the City should focus on restrictions on what retail locations could look like and enforce how they 16 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 advertise and present themselves beyond the State regulations. By restricting dispensaries from areas with retail traffic, other local businesses could possibly benefit from the people who would be frequenting dispensaries. He voiced his concern with proposed buffer and the need to have exposure in the marketplace. MR. TOM NOBLE, Palm Desert, California, stated that he has nothing against the cannabis industry. He noted that he provided the Planning Commission with a correspondence prior to the meeting. He voiced his concern with Section F of the proposed ordinance, which states "Commercial Businesses are prohibited from operating on properties that abut public parks, single-family residential properties . . ." He stated that abutting means sharing a property line. He does not think the City would want a commercial cannabis business sharing a property line with a single-family residential community or a public park. He noted that most of the ordinances he has seen have a 250-square-foot requirement distance from residential properties. He voiced that the ordinance is far from being voted on and should not be acted upon at this time. With no further testimony offered, Chair DeLuna declared the public hearing closed. Commissioner Gregory was confused with Mr. Noble's remarks in regard to the abutting of facilities to public parks. He asked if the suggested amendments precluded facilities abutting public parks. Mr. Ceja responded that cannabis businesses are prohibited on properties that abut a public park, same for single-family residential properties. He explained that it does not create a numeric distance requirement. He said that there are neighborhoods in very close proximity to Highway 111 and El Paseo; therefore, staff has limited parcels that abut a property line of a single-family residential property. Vice Chair Pradetto commented that he does not know enough about the industry to make an intelligent decision on whether the cannabis ordinance is good compared to everything else that is out there. Secondly, the nature of how fast things are changing, adds another complication. He stated the ordinance could be great, or it could have a gaping hole that the City will not find out until it is put into action. He said he would like to hear from Commissioner Greenwood since he sat on the Cannabis Committee. He would like to know some of the thoughts that lead to the draft cannabis ordinance. Commissioner Greenwood commended staff because it has not been an easy process. He said the Cannabis Committee looked where retail and cultivation establishments would be located, and spent a lot of time discussing residential use. He agreed with Commissioner Gregory, the ordinance is a living document and there will be changes made to the ordinance. 17 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Chair DeLuna shared that the City is breaking new and controversial ground. She believed, out of an abundance of caution and before moving forward to the City Council, the issue of cannabis businesses being in close proximity to the post- secondary education corridor merits further discussion. She stated that the post- secondary schools include kids under the age of 21, and she would like to see the same 600-square-foot exemption included for post-secondary schools. She said the City is trying to enhance the education corridor, attract students, and keep students. Therefore, the City has to guard that area as something unique and different. She voiced that she is also concerned with commercial zones and youth centers, and referred to The First Tee and The Hitting Zone. The two facilities would be less than 1 ,500 square feet of a cannabis business. Chair DeLuna noted that the use of marijuana is still illegal at the federal level. She believed it was prudent to proceed conservatively in accordance with new State laws. There are no current limits set for marijuana consumption and no testing methods to determine the amount of consumption. Therefore, responsibility rests with the City's ordinance. She stated that the City could revisit ordinances and relax them, but it is difficult once an ordinance is in place to constrict. Vice Chair Pradetto disagreed with Chair DeLuna. He stated that bars are not banned near colleges because there are students under 21. Chair DeLuna interjected that the amount of alcohol in a person's system could be tested. Vice Chair Pradetto believed that the State is working on finding a way to determine how much cannabis is in a person's system. He imagined that a cannabis business operator is salivating at the opportunity to be located near a college, and he is sure there are plenty of students that would appreciate having a cannabis business near campus. Commissioner Greenwood remarked that the cannabis dispensaries would be a licensed facility, which would have accountability. Chair DeLuna asked why the ordinance should exclude post-secondary schools from being considered as part of the definition of a school. Commissioner Greenwood commented that staff spent a lot of time looking at case studies. He inquired if staff found any research related to Chair DeLuna 's concern with post-secondary schools. Mr. Ceja responded that they did not find any research pertaining to cannabis businesses in close proximity to post-secondary schools. Commissioner Greenwood mentioned that he recently visited the state of Colorado. He stated that he did not see any separation from post-secondary schools. 18 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Commissioner Gregory commented that an effort has been made to distribute possible locations for cannabis dispensaries quite well, with a very conservative approach. As far as post-secondary education, he felt that the concern with younger children is that they might be influenced in a way before they have enough mental capacity to make a wise decision. He stated that a cannabis dispensary would have too much to lose in selling to someone that is underage. Commissioner Greenwood referred to the permit issuance process. He clarified that a cannabis facility could obtain a building permit, but not a Certificate of Occupancy until the license from the State has been issued to the business operator. Mr. Ceja replied that is correct. Following brief discussion pertaining to obtaining permits and post-secondary schools, the Planning Commission referred to the map displayed on the screen. Mr. Ceja pointed to areas where cannabis retail businesses would not be permitted. The Commission questioned the wording "single-family residential properties" under Section F, No. 2. Mr. Ceja proposed that the wording be changed to "private residential properties" which is a broader term than "single-family residential properties." Commissioner Greenwood referred to the area near Sage Lane. He mentioned that the City looked at opportunities to change that area to mixed-use. If it were to happen, could the area ultimately become available for cannabis retail use? Mr. Ceja replied no because the area still has a zoning designation of Downtown Core Overlay. The overlay prohibits cannabis retail use. Chair DeLuna asked if the motion must include the amendment to Section F, No. 2 of the ordinance. City Attorney Jill Tremblay replied yes. Commissionerreenwood asked what the process is if the ordinance moves forward to the City Council. Mr. Ceja responded if the Planning Commission approves a recommendation to the City Council, the ordinance would go to a City Council public hearing. It would require two hearings, and then the ordinance goes into effect 30 days after the date of the second hearing. Theoretically, the City could accept Conditional Use Permit applications once the ordinance has gone into effect. Any amendment to the ordinance would have to go back to the Planning Commission. 19 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Commissioner Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2706, recommending to the City Council to approve Case No. ZOA 17-027, with an amendment to Section F, No. 2 second paragraph; changing "single-family residential properties" to "private residential properties." Motion was seconded by Vice Chair Pradetto and carried by a 3-1-1 vote (AYES: Greenwood, Gregory, and Pradetto; NOES: DeLuna; ABSENT: Holt). X. MISCELLANEOUS None XI. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION None XII. COMMENTS XIII. ADJOURNMENT With the Planning Commission concurrence, Chair DeLuna adjourned the meeting at 8:34 p.m. NANCY DE LUNA, CHAIR ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION MONICA O'REILLY, RECORDING SECRETARY 20 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja responded two weeks, which would be the Planning Commission meeting scheduled for August 15. Commissioner Greenwood interjected that he would be interested to have formal comments and review by the ARC in regard to the Monterey Crossing sign design prior to the Planning Commission meeting on August 15. Mr. Ceja replied that the ARC will meet on August 8, and he would add the Monterey Crossing sign design to their agenda. Vice Chair Pradetto moved to, By Minute Motion, continue Case No. ZOA 17-070 to August 15 so City staff could further study the ZOA; and receive formal comments and review by the ARC regarding the design for the Monterey Crossing freeway- oriented monument sign. Motion was seconded by Commissioner Greenwood and carried by a 4-0-1 vote (AYES: DeLuna, Greenwood, Gregory, and Pradetto; NOES: None; ABSENT: Holt). D. REQUEST FOR CONSIDERATION to adopt a resolution recommending approval to the City Council to adopt a Zoning Ordinance Amendment to amend and retitle Palm Desert Municipal Code Section 25.34.120 Medical Cannabis Use to Cannabis Use and Regulations and Sections 25.16 Commercial and Industrial Districts and 25.18 One Eleven Development Code to allow for cannabis businesses within the City, subject to a Conditional Use Permit; and adopt a Notice of Exemption under the California Environmental Quality Act. Case No. ZOA 17-027 (City of Palm Desert, California, Applicant). The Planning Commission was provided with a PowerPoint presentation and an oral interpretation of the staff report by Mr. Ceja (staff report is available at www.cityofpalmdesert.org). He noted that it has taken City staff over a year to draft the cannabis ordinance due to the constant changes at the State level. Consequently, the Commission may see the cannabis ordinance again in a relatively short time. Staff recommended approval to the City Council of the ZOA for adult-use of cannabis and commercial cannabis operations. He offered to answer any questions. Commissioner Greenwood asked if the definition of commercial also pertains to retail. Mr. Ceja replied that is correct. Commissioner Greenwood inquired if there is a map of the Downtown District Overlay that has been omitted from retail opportunities. He asked where the retail opportunities exist within the City of Palm Desert. 13 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja replied that he does not have a map of the Downtown District Overlay. He referred to a map displayed on the screen and pointed to commercial centers in the City that could accommodate a cannabis business. He noted that a cannabis business is not allowed where there is red hatching indicated on the map. Commissioner Gregory asked staff to explain the difference between the orange hatching and the red areas without hatching indicated on the map. Mr. Ceja explained that there a various degrees of development intensity. The orange areas are allowed for mixed-use up to three stories with a mix of commercial, primarily on the ground floor. The orange areas with the hatching are in an edge overlay, which is the transition from multi mixed-use and multi- story down to two stories and primarily residential uses. He said the red areas would allow for three-story mixed-use; predominantly for commercial uses. Chair DeLuna pointed to the plain red areas along El Paseo, and asked if the areas could be retail outlets for cannabis. Mr. Ceja replied yes. Chair DeLuna stated that there are some locations where the City is entertaining mixed-use developments, such as a building with retail on the first floor and residential above. She asked if the building would automatically be exempt from allowing a cannabis business since residential units would be attached to the building. Mr. Ceja responded that the ordinance was written to exempt mixed-use development so the City would not shut down everything on Highway 111 or El Paseo to cannabis if it is part of a mixed-use development. However, you can still have a cannabis business on the ground floor. Chair DeLuna affirmed that there could be cannabis stores along El Paseo. Mr. Ceja responded that staff has seen very high-end cannabis retail operations that could potentially be a good fit for El Paseo. According to State statute, Chair DeLuna asked staff to define a school. In relation to cannabis, Mr. Ceja believed that the State defines a school as K to 12 facilities. Chair DeLuna noted that there are five post-secondary schools in Palm Desert. She asked staff to show her where cannabis retail businesses could possibly be permitted that is within a 600-foot radius of the post-secondary schools. 14 GAPlanning\Monica OReilly\Planning Comm ission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Mr. Ceja referred to the map to show the locations of the post-secondary schools and the potential locations of a cannabis business. Vice Chair Pradetto asked Chair DeLuna if they should intensify the allowable number cannabis dispensaries near the college campuses. Chair DeLuna remarked no. She stated that post-secondary schools have under aged students. However, she would address that issue when they get to the Commissioner's comments. In regard to the people that want to grow marijuana in their backyard, she inquired if the City's Code Enforcement Division would be the enforcing agency. Mr. Ceja replied yes. Chair DeLuna asked if it would require a complaint from a neighbor or interested party for Code Enforcement to check a home for marijuana plants. Mr. Ceja responded that it is not the practice of Code Compliance officers to enter backyards. There would have to be a complaint for Code Compliance to respond. Chair DeLuna commented that day care and youth centers are loosely defined. She asked staff how many day care and youth centers are located within 600 feet of a cannabis retail business. Mr. Ceja replied that he does not have a number of day care or youth centers that would be located within 600 feet of a cannabis business. He reiterated that a cannabis business would not be allowed to be within 600 feet of the centers. Chair DeLuna inquired if day care centers include pre-schools. Mr. Ceja replied that is correct. Commissioner Greenwood said the map indicates a 1 ,000-square-foot commercial buffer. He asked what the difference is between 1 ,000 square feet and 1 ,500 square feet from adjacent dispensaries. Mr. Ceja responded that the red circles on the map indicate 1 ,000 square feet, and the blue circles indicate 1 ,500 square feet. Therefore, essentially all the red circles would be enlarged to match the blue circles to further limit coZercial cannabis. Chair DeLuna inquired if there were any reasons or thoughts given for allowing retail sales of cannabis along El Paseo. Mr. Ceja replied yes. He explained that there are some smoke shops on El Paseo that seem to fit in perfectly well with El Paseo. Staff also saw other 15 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 cannabis retail operations that could be high-end and specialized and fit in well with El Paseo. The Conditional Use Permit process will ensure that a cannabis retail operation would be an appropriate use on El Paseo. Commissioner Greenwood asked if staff has completed an analysis in regard to looking at the restrictions as it applies to schools, day cares, etc. as well as the 1 ,500-square-foot radius. He also asked how many dispensaries would be allowed within the 111 Corridor. Mr. Ceja responded that he does not have a number of dispensaries that would be allowed within the 111 Corridor. Due to the definition of a youth center and how broad that is, it has been difficult to identify the location for a dispensary within the 111 Corridor. He noted that the maps with the red circles gave the Cannabis Committee an idea of approximately how many dispensaries could be permitted. Commissioner Gregory voiced that the cannabis ordinance is a living document, and he would not be surprised if there is an amendment. The City has to start somewhere and see what happens. Commissioner Greenwood conveyed he spent a lot of time working on the General Plan Update process. He also sat on the Cannabis Committee. Cannabis is new for a lot of people and there tends to be a little bit of a stigma. He felt that time would show cannabis retail establishments are businesses like any other business and it will go by the wayside. To say that the cannabis ordinance is a living document, the Planning Commission may see some of the restrictions become lesser in the areas along the 111 Corridor. He questioned why they are not opening the 111 Corridor since there is a 1 ,500-square-foot requirement, the same goes for some of the other areas. Chair DeLuna declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. MR. CHRISTOPHER CRANFILL, Palm Desert, California, stated he is in favor of the cannabis ordinance. However, he is against some of the proposed restrictions. He said restricting anchoring locations is going to create a hole where the City will wind up with cannabis zones. The cannabis zones would create overpriced properties, which will mean more buildings that sit empty for a longer period of time. He expressed that synergy is huge. Palm Desert has a huge population, it is the center of the Coachella Valley, and it is the retail center of the Coachella Valley. Palm Desert also created a very good environment and it has very high standards. For those reasons, the cannabis industry would like to see their business in Palm Desert. He stated that cannabis was voted in by the people in California, therefore, it is something that the people want. If the City is concerned with the visibility of cannabis retail businesses, the City should focus on restrictions on what retail locations could look like and enforce how they 16 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 advertise and present themselves beyond the State regulations. By restricting dispensaries from areas with retail traffic, other local businesses could possibly benefit from the people who would be frequenting dispensaries. He voiced his concern with proposed buffer and the need to have exposure in the marketplace. MR. TOM NOBLE, Palm Desert, California, stated that he has nothing against the cannabis industry. He noted that he provided the Planning Commission with a correspondence prior to the meeting. He voiced his concern with Section F of the proposed ordinance, which states "Commercial Businesses are prohibited from operating on properties that abut public parks, single-family residential properties . . ." He stated that abutting means sharing a property line. He does not think the City would want a commercial cannabis business sharing a property line with a single-family residential community or a public park. He noted that most of the ordinances he has seen have a 250-square-foot requirement distance from residential properties. He voiced that the ordinance is far from being voted on and should not be acted upon at this time. With no further testimony offered, Chair DeLuna declared the public hearing closed. Commissioner Gregory was confused with Mr. Noble's remarks in regard to the abutting of facilities to public parks. He asked if the suggested amendments precluded facilities abutting public parks. Mr. Ceja responded that cannabis businesses are prohibited on properties that abut a public park, same for single-family residential properties. He explained that it does not create a numeric distance requirement. He said that there are neighborhoods in very close proximity to Highway 111 and El Paseo; therefore, staff has limited parcels that abut a property line of a single-family residential property. Vice Chair Pradetto commented that he does not know enough about the industry to make an intelligent decision on whether the cannabis ordinance is good compared to everything else that is out there. Secondly, the nature of how fast things are changing, adds another complication. He stated the ordinance could be great, or it could have a gaping hole that the City will not find out until it is put into action. He said he would like to hear from Commissioner Greenwood since he sat on the Cannabis Committee. He would like to know some of the thoughts that lead to the draft cannabis ordinance. Commissioner Greenwood commended staff because it has not been an easy process. He said the Cannabis Committee looked where retail and cultivation establishments would be located, and spent a lot of time discussing residential use. He agreed with Commissioner Gregory, the ordinance is a living document and there will be changes made to the ordinance. 17 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES ' PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Chair DeLuna shared that the City is breaking new and controversial ground. She believed, out of an abundance of caution and before moving forward to the City Council, the issue of cannabis businesses being in close proximity to the post- secondary education corridor merits further discussion. She stated that the post- secondary schools include kids under the age of 21, and she would like to see the same 600-square-foot exemption included for post-secondary schools. She said the City is trying to enhance the education corridor, attract students, and keep students. Therefore, the City has to guard that area as something unique and different. She voiced that she is also concerned with commercial zones and youth centers, and referred to The First Tee and The Hitting Zone. The two facilities would be less than 1 ,500 square feet of a cannabis business. Chair DeLuna noted that the use of marijuana is still illegal at the federal level. She believed it was prudent to proceed conservatively in accordance with new State laws. There are no current limits set for marijuana consumption and no testing methods to determine the amount of consumption. Therefore, responsibility rests with the City's ordinance. She stated that the City could revisit ordinances and relax them, but it is difficult once an ordinance is in place to constrict. Vice Chair Pradetto disagreed with Chair DeLuna. He stated that bars are not banned near colleges because there are students under 21. Chair DeLuna interjected that the amount of alcohol in a person's system could be tested. Vice Chair Pradetto believed that the State is working on finding a way to determine how much cannabis is in a person's system. He imagined that a cannabis business operator is salivating at the opportunity to be located near a college, and he is sure there are plenty of students that would appreciate having a cannabis business near campus. Commissioner Greenwood remarked that the cannabis dispensaries would be a licensed facility, which would have accountability. Chair DeLuna asked why the ordinance should exclude post-secondary schools from being considered as part of the definition of a school. Commissioner Greenwood commented that staff spent a lot of time looking at case studies. He inquired if staff found any research related to Chair DeLuna 's concern with post-secondary schools. Mr. Ceja responded that they did not find any research pertaining to cannabis businesses in close proximity to post-secondary schools. Commissioner Greenwood mentioned that he recently visited the state of Colorado. He stated that he did not see any separation from post-secondary schools. 18 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Commissioner Gregory commented that an effort has been made to distribute possible locations for cannabis dispensaries quite well, with a very conservative approach. As far as post-secondary education, he felt that the concern with younger children is that they might be influenced in a way before they have enough mental capacity to make a wise decision. He stated that a cannabis dispensary would have too much to lose in selling to someone that is underage. Commissioner Greenwood referred to the permit issuance process. He clarified that a cannabis facility could obtain a building permit, but not a Certificate of Occupancy until the license from the State has been issued to the business operator. Mr. Ceja replied that is correct. Following brief discussion pertaining to obtaining permits and post-secondary schools, the Planning Commission referred to the map displayed on the screen. Mr. Ceja pointed to areas where cannabis retail businesses would not be permitted. The Commission questioned the wording "single-family residential properties" under Section F, No. 2. Mr. Ceja proposed that the wording be changed to "private residential properties" which is a broader term than "single-family residential properties." Commissioner Greenwood referred to the area near Sage Lane. He mentioned that the City looked at opportunities to change that area to mixed-use. If it were to happen, could the area ultimately become available for cannabis retail use? Mr. Ceja replied no because the area still has a zoning designation of Downtown Core Overlay. The overlay prohibits cannabis retail use. Chair DeLuna asked if the motion must include the amendment to Section F, No. 2 of the ordinance. City Attorney Jill Tremblay replied yes. Commissioner Greenwood asked what the process is if the ordinance moves forward to the City Council. Mr. Ceja responded if the Planning Commission approves a recommendation to the City Council, the ordinance would go to a City Council public hearing. It would require two hearings, and then the ordinance goes into effect 30 days after the date of the second hearing. Theoretically, the City could accept Conditional Use Permit applications once the ordinance has gone into effect. Any amendment to the ordinance would have to go back to the Planning Commission. 19 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx MINUTES PALM DESERT PLANNING COMMISSION AUGUST 1, 2017 Commissioner Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2706, recommending to the City Council to approve Case No. ZOA 17-027, with an amendment to Section F, No. 2 second paragraph; changing "single-family residential properties" to "private residential properties." Motion was seconded by Vice Chair Pradetto and carried by a 3-1-1 vote (AYES: Greenwood, Gregory, and Pradetto; NOES: DeLuna; ABSENT: Holt). X. MISCELLANEOUS None XI. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION None XII. COMMENTS XIII. ADJOURNMENT With the Planning Commission concurrence, Chair DeLuna adjourned the meeting at 8:34 p.m. NANCY DE LUNA, CHAIR ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION MONICA O'REILLY, RECORDING SECRETARY 20 GAPlanning\Monica OReilly\Planning Commission\2017\Minutes\8-1-17.docx ,,..., I I Y 0 [ P H [ M 0 N 1 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92 2 60-2 5 7 8 TEL: 760 346-061I info@cityofpalmdesert.org PLANNING COMMISSION MEETING NOTICE OF ACTION August 3, 2017 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Subject: Recommendation to the City Council to Approve a Zoning Ordinance Amendment Relating to Adult-Use of Cannabis and Commercial Cannabis Operations The Planning Commission of the City of Palm Desert considered your request and took the following action at its regular meeting of August 1, 2017: The Planning Commission approved a recommendation to the City Council to approve Case No. ZOA 17-028 by the adoption of Planning Commission Resolution 2706. Motion carried by a 3-1-1 vote with Chair DeLuna voting NO and Commissioner Holt ABSENT. Any appeal of the above action may be made in writing to the City Clerk, City of Palm Desert, within fifteen (15) days of the date of the decision. Ryan Sten el Secretary Palm Desert Planning Commission cc: File ,-` Building & Safety Department Public Works Department Fire Marshal LI PRIMED OX RECYCLED PIPER PLANNING COMMISSION RESOLUTION NO. 2706 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO THE CITY COUNCIL TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120 MEDICAL CANNABIS USE TO CANNABIS USE AND REGULATIONS AND SECTION 25.16 COMMERCIAL AND INDUSTRAIL DISTRICTS AND SECTION 25.18 ONE ELEVEN DEVELOPMENT CODE TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY, SUBJECT TO A CONDITIONAL USE PERMIT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT CASE NO: ZOA 17-027 WHEREAS, pursuant to the authority granted to the City of Palm Desert ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulation and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult personal and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council established an Ad Hoc Cannabis Committee, comprised of industry representatives, community members, and City staff, to review a potential cannabis ordinance and to make recommendations for changes to the City's Municipal Code to allow and regulate cannabis businesses; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 1 s' day of August 2017, hold a duly noticed public hearing to consider changes to the City's Zoning Ordinance to allow cannabis businesses in the City subject to approval of a Conditional Use Permit and certain regulations; and WHEREAS, the requirements established in the ordinance ensure that cannabis businesses can operate in the City in a safe and limited manner, subject to licensing from the State Bureau of Cannabis Control; and WHEREAS, the Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution and laws of the State of California. PLANNING COMMISSION RESOLUTION NO. 2706 B. The California Constitution and Planning and Zoning Laws authorize cities to establish, by ordinance, the regulations imposed on certain business operations and that cannabis businesses can be conditioned and limited in the City. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Municipal Code amendment to Section 25.34.120 Cannabis Use and Regulations and 25.16 Commercial and Industrial Districts, and 25.18 One Eleven Development Code as shown in Exhibit "A", "B" and Exhibit "C" which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to regulate the use of cannabis and cannabis businesses is not a , "project" and is not subject to CEQA review. The Director of Community Development therefore, is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 1st day of August 2017 by the following vote, to wit: AYES: GREENWOOD, GREGORY, and Pradetto NOES: DE LUNA ABSENT: HOLT ABSTAIN: NONE 4uln NANCY DE NA, CHAIRPERS N ATTEST: RYAN STE D LL, SECRETARY PALM DESEfW PLANNING COMMISSION 2 PLANNING COMMISSION nESOLUTION NO. 2706 Exhibit A PDMC SECTION: 25.34.120 — Cannabis Use and Regulations This Chapter shall be known as the "Cannabis Use and Regulation Ordinance" for the City of Palm Desert. A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, personal cultivation, manufacturing, testing, distribution, transportation, delivery, dispensing, retail sale, and personal adult use of medicinal cannabis and non-medicinal cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 (CUA), the Medical Marijuana Program Act (MMPA), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) (collectively, "state law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. It is the intent of the City to allow personal cultivation at residential properties and commercial cannabis permitees within city boundaries, subject to approval of special permitting, terms, conditions, confirmation of a state issued license, and in accordance with the provisions of this title. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in State law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. B. Definitions Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter. Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources: The California Business and Professions Code Section 19300.5 and Section 26001, The Compassionate Use Act of 1996 (CUA), The Medical Marijuana Program (MMPA), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). "Applicant" means a person applying for a Conditional Use Permit whom will be the primary owner and operator for any Commercial Cannabis Business. "Cannabis" means all parts of the plant 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 cannabis. "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 3 PLANNING COMMISSION RESOLUTION NO. 2706 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. "Cannabis retailer" means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. "Cannabis manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or re-labels its container. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. "Commercial Cannabis Business" means any commercial operation associated, in whole or in part, with the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transporting, sale, dispensing, delivery or transport of cannabis and cannabis products. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer. "Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities for commercial use purposes. "Fully Enclosed and Secured Structure" means a space within a building, greenhouse, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors. "Licensee" means the holder of any state issued license related to Commercial Cannabis Businesses, including but not limited to licenses issued under Division 10 of the Business & Professions Code. 4 PLANNING COMMISSIO1 ESOLUTION NO. 2706 "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. "Permittee" means any person granted a Conditional Use Permit under this Chapter. "Private Residence" means a house, an apartment unit, mobile home, or other similar dwelling unit. "Sale" includes any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom such cannabis or cannabis product was purchased. "Testing Facility" means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and meets the licensing requirements found in MAUCRSA. C. Permit Required and Exemptions 1. Required i. All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit, City business license, and license from the Bureau of Cannabis Control prior to the operation of any cannabis facility within the City. ii. Building permits for improvements associated with a Commercial Cannabis Business may be issued once an applicant has obtained approval of a Conditional Use Permit; however, a certificate of occupancy to operate will not be issued until said Commercial Cannabis Business has obtained, and provided the City proof, of a license issued by the Bureau of Cannabis Control as part of the City's Business License application. iii. Any Commercial Cannabis Business issued a Conditional Use Permit must provide the City with proof of a license issued by the Bureau of Cannabis Control prior to operation. Failure to maintain a license from the Bureau will result in revocation of the Conditional Use Permit and business license. iv. No Commercial Cannabis Business may operate in the City unless a license(s) from the Bureau of Cannabis Control has been issued and provided to the City's Department of Community Development and Business License Division. v. A copy of the Bureau of Cannabis Control license, and any updates to the license, shall be provided to the Business License Division at the time of business license renewal. vi. Changes in license type, business owner, or operation will require an amendment to the approved Conditional Use Permit. 2. Exemptions i. Personal use, and cultivation of cannabis for personal use, is permitted outright on residential properties and subject to Subsection E of this ordinance and in accordance with the MAUCRSA. 5 PLANNING COMMISSION RESOLUTION NO. 2706 ii. Primary Caregivers engaged in the transportation of cannabis and cannabis related products to Qualified Patients for which they are the Primary Caregiver are exempt from the requirement to obtain any special licensing from the City. iii. Any Cannabis Delivery operator, with a physical address outside the City is exempt from obtaining a Conditional Use Permit. The operator is required to obtain a business license with the City's Business License Division. D. Prohibited Activity 1. No Commercial Cannabis Business shall operate without first obtaining approval of: a Conditional Use Permit from the Planning Commission, a City issued business license, and the required State issued cannabis license from the Bureau of Cannabis Control. 2. No Commercial Cannabis Business shall operate within 600 feet of a school, daycare facility, or youth center as defined by this Ordinance and the MAUCRSA. 3. A Commercial Cannabis Business shall operate in accordance with the conditions adopted in the approved Conditional Use Permit and all conditions imposed by the Bureau of Cannabis Control. Commercial Cannabis Businesses shall only operate in designated zoning districts as identified in Section 25.16.030, 25.18.040 and within a fully enclosed and secured structure. 4. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, ' xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residence. 5. Commercial Cannabis Businesses shall not advertise or promote cannabis or cannabis products that encourage use by persons under the age of 21, or promote cannabis and cannabis products within 1,000 feet of a school, daycare, park, or youth center. 6. Any activity generally prohibited by the AUMA, MCRSA, or other applicable State provisions related to Commercial Cannabis Businesses, and local ordinances. E. Personal Use and Cultivation Persons 21 years and older are permitted to use cannabis in accordance with the MAUCRSA, and subject to the City's Smoking Ordinance (PDMC 8.36). No special land use or business permits are required from the City for personal use and cultivation at or within a private residence. The following standards shall regulate personal use and cultivation: 1. Personal Use. Qualified patients and persons of legal age permitted to use cannabis in accordance with AUMA or MCRSA, and MAUCRSA, when it goes into effect, may do so on private property, out of public view, and in accordance with the City's "Regulations and Prohibitions of Smoking" Ordinance (PDMC 8.36). Generally, the use of cannabis is prohibited on City property, including parks, common areas in 6 PLANNING COMMISSION =SOLUTION NO. 2706 City-owned housing developments, and other public places. Smoking or use of cannabis is prohibited within 1,000 feet of a school or childcare facility. 2. Personal Cultivation — Residents in the City are permitted to cultivate cannabis on private residential property for personal use and in accordance with AUMA, MCRSA, and then MAUCRSA, when it goes into effect; subject to the following standards: i. Outdoor Cultivation a. Cultivation for personal use is only permitted on private residential property developed with at least one residential dwelling unit. No more than six (6) plants are permitted to be cultivated at a private residence. Property owners retain the ability to prohibit renters from cultivation and any renter choosing to cultivate shall first obtain written authorization from the property owner to cultivate on site. b. Outdoor cultivation is limited to rear and side yard areas, and only if screened by a solid block wall no less than six (6) feet in height. c. Outdoor cultivation shall not be visible from surrounding public streets or adjoining properties. As such, cannabis plants may not grow above the height of the property line walls unless screened by another approved screening method. d. Outdoor cultivation within 600 feet of a school, daycare center, or youth center is prohibited. ii. Indoor Cultivation a. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation are required to obtain a building permit from the City's Department of Building and Safety. b. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor cultivation at a private residences. F. Commercial Cannabis Businesses Commercial Cannabis Businesses are defined in Subsection B of this Ordinance and do not include businesses that only sell cannabis related paraphernalia. All Commercial Cannabis Businesses shall be regulated by the following: 1. Required Permits — All Commercial Cannabis Businesses are required to obtain approval of a Conditional Use Permit in accordance with PDMC Section 25.72.050 "Conditional Use Permit." Commercial Cannabis Businesses must also obtain a business license with the City's Business License Division and provide proof of a cannabis license issued by the Bureau of Cannabis Control in accordance with Section C of this Ordinance. Failure to provide proof of a state issued cannabis license within one year of Conditional Use Permit approval will render the Conditional Use Permit invalid. 7 PLANNING COMMISSION RESOLUTION NO. 2706 2. Location —Commercial Cannabis Businesses are permitted in the City's commercial, industrial, and downtown zoning districts as identified in Section 25.16.030 "Allowed Land Uses and Permits Requirements"and Section 25.18.040 "Land Use and Permit Requirements"of the Palm Desert Municipal Code. In accordance with MAUCRSA, no Commercial Cannabis Business is permitted within 600 feet of a school, childcare facility, or youth center. Commercial Cannabis Businesses are prohibited from operating on properties that abut public parks, private residential properties, or are located within the City's Downtown Core Overlay District. 3. Separation Requirement — Commercial Cannabis Businesses shall conform to the following separation requirements: a. No Conditional Use Permit shall be issued to a Commercial Retailer that is located within 1,500 feet of another approved Commercial Cannabis Business. b. Commercial Cannabis Businesses whose main business function is cannabis cultivation, distribution, manufacturing, transportation, or delivery, and whose location is limited to the City's Service Industrial zoning district only, shall be separated by 1,500 feet from another approved Commercial Cannabis Business. c. Commercial Cannabis Businesses whose main business function is to operate as a testing laboratory are subject to a separation requirement of 500 feet and are exempt from the separation requirements listed above. d. No Conditional Use Permit will be issued for Commercial Cannabis Business located within 600 feet of a school, daycare center, youth center. e. With the exception of Commercial Cannabis Businesses whose business is located within a mixed-use building or whose primary business function is as a testing laboratory, no Conditional Use Permits shall be issued for commercial and industrial properties abutting public parks or private residences. f. All separation requirements will be measured from the outer extents of the Commercial Cannabis Businesses lease space to the outer extents of another Commercial Cannabis Businesses lease space, or to the property line of a school, daycare center and youth center. 4. Operational Requirements: a. Commercial Cannabis Businesses shall be conducted only within a Fully Enclosed and Secured Structure that is not accessible to minors. b. Commercial Cannabis Businesses shall not create nuisance issues such a dust, glare, heat, noise, smoke, odor, and shall not be hazardous to use or storage of materials, processes, products, or wastes. c. All cannabis and cannabis products shall be kept in a secured manner during all 8 PLANNING COMMISSION r ESOLUTION NO. 2706 business and nonbusiness hours. d. Commercial Cannabis Businesses shall utilize product and inventory tracking software and accounting software that is in-line with reasonable business practices within the industry. e. Commercial Cannabis Businesses shall install and operate security cameras at their place of business as follows: i. Security cameras shall be installed and maintained in good condition at all times. The areas to be covered by the security cameras include, but are not limited to sale, cultivation, manufacturing, processing, transportation, and distribution areas, all doors and windows, and any other areas as reasonably determined by the Planning Commission. ii. Cameras shall be in use 24 hours per day, seven days per week. iii. Commercial Cannabis Business permittees shall maintain at least 120 concurrent hours of digitally recorded documentation. iv. Any disruption in security camera images shall be cured expeditiously and in good faith. f. Permittees shall install alarm systems that are operated and monitored by an independent third party security company. g. All storage areas shall be locked at all times and under control by the permittee's staff. h. All cannabis and cannabis products shall be securely stored and not accessible to the general public. 5. Conditional Use Permit Submittal Requirements — In addition to the requirements listed in the Conditional Use Permit, all Commercial Cannabis Businesses shall submit the following information in conjunction with the review of a Conditional Use Permit: a. Background Check. The applicant is required to provide names, addresses, and relevant criminal histories of those with an ownership interest of 25 percent or more, and for themselves and the highest ranking employee (manager, director, etc.) at the Commercial Cannabis Business. The background check must be submitted on a form prescribed by the City and can be obtained at the City's Business Licensing Division. b. Business Plan. To be submitted for operational, banking, and personal procedures to ensure adequate business knowledge, modeling and support. c. Exterior Fagade. Renderings of the business facade shall be provided and reviewed as part of the Conditional Use Permit. Building faqade plans shall include renderings of the exterior building elevations for all sides of the building. All building facades shall be tastefully done and in keeping with the high architectural quality and standards of the City of Palm Desert. Because state law 9 PLANNING COMMISSION RESOLUTION NO. 2706 limits certain advertising, the business fagade and building signs shall be compatible and complimentary to surrounding businesses and shall add visual quality to the area. d. Open Premises Agreement. By receiving approval of a Conditional Use Permit the permittee of a Commercial Cannabis Business is agreeing to open the business to City officials at any time during business hours for inspection and to review that the permittee is operating in accordance with the conditions of this title and the Conditional Use Permit. e. Cultivation permittees shall supply energy and water assessments for review as part of the Conditional Use Permit process. These assessments shall estimate the total amount of annual electrical and water use required to operate the Commercial Cannabis Business. Review of the assessment may require the applicant to supplement electrical and water use at the site to minimize adverse environmental impacts. f. Security Plan. All Commercial Cannabis Businesses shall provide a security plan and demonstrate compliance with the security camera provisions outlined in Section F4 of this Ordinance. g. Access Plan and 24-hour Emergency Contact Information. The applicant shall provide contact information, including name, email, and 24-hour accessible phone number to the Department of Community Development and Sheriff's s Department. i, h. Community Relations. The applicant shall provide a 24-hour contact number to surrounding property owners within 100 feet of the permittees location. By issuance of a Conditional Use Permit the permittees of a Commercial Cannabis Business agrees to respond to inquiries, concerns, and complaints from surrounding property owners. i. Odor Control. The applicant shall identify methods for ensuring odors emanating from a Commercial Cannabis Business do not interfere with surrounding businesses and the public realm. Odor control methods, include, but are not limited to, use of odor absorbing ventilation and exhaust systems, negative air pressure, and other treatments. j. Annual License Renewal All Commercial Cannabis Businesses are required to provide a valid license issued from the State Bureau of Cannabis Control at the time of business license renewal. A business license is required to be renewed on an annual basis. k. Indemnification Agreement. All Commercial Cannabis Businesses that obtain a Conditional Use Permit shall, and by acceptance of the permit, agree to hereby indemnify and hold harmless the City, its officers, agents and employees from any and all damages, claims, liabilities, costs including attorney fees, suits or other expenses resulting from and arising out of said commercial cannabis business operations. 10 PLANNING COMMISSIO1 ESOLUTION NO. 2706 G. Penalties for Violation No person, whether as principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fails to comply with any of the requirements of this section. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this section, any condition caused or permitted to exist in violation of any of the provisions of this section is declared a public nuisance and may be abated as provided under the Municipal Code or State Law, and may result in revocation of a Conditional Use Permit. H. Grounds for Denial, Revocation or Suspension The issuance of a Conditional Use Permit for the operation of a Commercial Cannabis Business may be denied, and an existing permit may be revoked or suspended, if the permittee or applicant: a. Has knowingly made false statements in the applicant's application or in any reports or other supporting documents furnished by the applicant. b. Has been convicted of any offense related to the use, sale, possession or transportation of narcotics or habit-forming drugs. c. Has been convicted of any offense punishable as a felony, or has been convicted within a 10-year period immediately preceding the crime of theft in either degree. d. Failed to pay required taxes and business license fees. e. Failure to maintain a valid State issued license from the Bureau of Cannabis Control. f. Has failed to comply with the conditions imposed on the Conditional Use Permit. g. Has violated any provision of this chapter. 11 PLANNING COMMISSION RESOLUTION NO. 2706 Exhibit B Chapter 25.16 — Commercial and Industrial Districts Sections in This Chapter 25.16.010 Purpose ...................................................................................................16-12 25.16.020 Characteristics of the Commercial and Industrial Districts .......................16-12 25.16.030 Allowed Land Uses and Permit Requirements.........................................16-13 25.16.040 Specific Use Standards.............................. 16-Error! Bookmark not defined. 25.16.050 Development Standards...........................................................................16-17 25.16.010 Purpose The purpose of this chapter is to establish commercial and industrial zoning districts in the City, along with allowed use and development standards applicable to those districts. These districts are consistent with and implement the City's General plan commercial and industrial district and center land use categories as indicated in Table 25.04-1 (Zoning Districts). 25.16.020 Characteristics of the Commercial and Industrial Districts The following descriptions of each district identify the characteristic uses, intensity of uses, and intended level of development for that district. A. Office Professional (OP). This district is intended for various levels of intensities for business, office, administrative, research and development, and/or professional land uses. This district is characterized by urban streetscapes with formal tree arrangements and larger block sizes. B. Planned Commercial (PC). The PC districts provide flexibility for commercial and mixed-use development. Generally, these districts are characterized as coordinated projects that integrate compatible commercial and residential mixed-uses. PC districts balance the need for automobile parking and pedestrian connections that are organized around walkable streetscapes and other pedestrian amenities. PC districts are further refined based on property size, proximity to residential uses, and as described below: 1. Specialty Commercial Center (PC-1). The specialty commercial center provides for small-scale commercial development that primarily serves surrounding neighborhoods and other immediate land uses. This district is characterized as being located in close proximity to residential development and, as such, provides high levels of convenient pedestrian access. This district also promotes the development of mixed-use (10.0-15.0 du/ac) as a transition between residential uses and other development types. 2. District Commercial Center (PC-2). The district commercial center provides convenient shopping opportunities outside of the downtown core area. This i PC district provides large-format retail areas for the broader community and 12 PLANNING COMMISSIOI. ..ESOLUTION NO. 2706 provides flexibility for the integration of mixed-use (10.0-15.0 du/ac) on upper floors of commercial buildings. The center is also characterized by traditional parking lots with formal tree arrangements and spacing and sufficient space for pedestrian areas and open space. 3. Regional Commercial Center (PC-3). The regional commercial center provides a unified area for commercial uses which offer a wide range of goods and services, including comparison and convenience shopping, entertainment, cultural, and recreational uses. The district provides for large- scale, large-format, commercial development that serves the broader region and is generally located around major intersections and properties in proximity to freeway overpasses. Although this district is predominately commercial, mixed-use (10.0-15.0 du/ac) is allowed and should be integrated into developments on the upper floor. 4. Resort Commercial Center (PC-4). The resort commercial center allows for the development of a range of entertainment, hospitality, restaurants, and recreational facilities with related commercial uses to serve visitors to the City. The district is characterized by multi-story development that provides recreation and entertainment amenities in accordance with its urban/natural setting, and provides flexibility to integrate mixed-use (10.0 du/ac). C. Service Industrial (SI). This district allows for the development of traditional business parks that allow for the manufacture, distribution, research and development, and service of products intended for use within Palm Desert and surrounding communities. The district is characterized as having a more urban setting with buildings located near roadways, shared and connected parking, and streetscapes with formal street tree arrangements. 25.16.030 Allowed Land Uses and Permit Requirements Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed uses and corresponding permit requirements for commercial and industrial districts and all other provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions). The "Special Use Provisions" column in the table identifies the specific chapter or section where additional regulations for the specific use type are located within this ordinance. Use regulations in the table are shown with representative symbols by use classification listing: "P" symbolizes uses permitted by right, "A" symbolizes uses that require approval of an administrative use permit, "C" symbolizes uses that require approval of a conditional use permit, and "N" symbolizes uses that are not permitted. Uses that are not listed are not permitted. However, the Commission may make a use determination as outlined in Section 25.72.020 (Use Determinations). 13 PLANNING COMMISSION RESOLUTION NO. 2706 Table 25.16-1: Use Matrix for Commercial and Industrial Districts r , s Commercial/Industrial District i (P=Permitted;A=Administrative Use Special Use Permit; C=Conditional Use Permit; Provisions N=Not Permitted) OP PC-1 PC-2 PC-3 I PC-4 SI Residential Uses Caretaker housing N N N N N P 25.16.040.A Condominium C C C N C C 25.16.040.8 Dwelling, duplex C C C C C C 25.16.040.E Dwelling, multifamily C C C C C C 25.16.040.E Dwelling, single-family C C C N C C 25.16.040.E Group home C C N N C C 25.16.040.13 Single-room occupancies N N N N N C Homeless Shelter N N N N I N P Recreation,Resource Preservation,Open Space,and Public Assembly Uses Amusement facility, indoors N N C C C N Amusement facility, outdoors N N N C C N Community facility N N N N N P Day care center N C C C C N Emergency shelters N P N N N P Entertainment facility, indoor N N N P P N Entertainment facility, outdoor N N N P P N Institution,educational C C C N N C Institution,general C N C N N C Institution, religious C N C N N C Open space(developed or natural) N P P N P N Recreation facility, commercial N N P P P N Recreation facility, private N N N P P N Theater/auditorium N N P P N N Utility,Transportation,Public Facility,and Communication Uses Commercial communication tower C C C C C C 25.16.040.0 Commercial parking lot C N N N N N Public utility installation N N N N N P Public facility(utility or service) N I N I N N N P 14 PLANNING COMMISSIOI. ..ESOLUTION NO. 2706 Utility facility N N C N N P Retail, Service,and Office Uses Adult entertainment N N I N N N C 25.16.040.D Ancillary commercial A P P P N A 25.16.040.E Art gallery A P P P P C Art studio A P P P P C Bed and breakfast N A A A A N Business support services N N N N P P Cannabis Retail N C C C C N 25.34.120 Cannabis Testing Facilities C N N N N C 25.34.120 Convention and visitors bureau N N P N P N Drugstore N P P P N N Financial institution C P P P N N Grocery store N P P P N N 25.16.040.F Health club, gyms or studios N A P P P C Hotel N A A A P N Liquor store N P P P N N Liquor, beverage and food items shop N P P P P N Medical, clinic P N P P N N Medical, office P P P P N N Medical, hospital N N N N N C Medical, laboratory P N N N N P Medical office, accessory N N N N N P 25.16.040.G Medical, research facility P P N N N C Mortuary N N N N N P Office, professional P N P P P P Office, local government P N N N N P Office, travel agency P P P P P N Outdoor sales N N A A A A Personal services N P P P P N Restaurant A C C C P C 25.16.040.E/H Retail N P P P P N Retail, bulky items N N N P P N Spa N N P P P N 15 PLANNING COMMISSION RESOLUTION NO. 2706 Time-share project N N N C C I N Automobile and Vehicle Uses Automotive rental agency N N N N P P Automotive gasoline station N N C C N C 25.34.090 Automotive service facility N N C C N P 25.34.090 Automotive sales new and used(Outdoor/Indoor) N N N N N C Automotive sales of accessory parts and supplies N N N P P N Vehicle storage facility N N N N N P 25.16.040.1 Industrial,Manufacturing,and Processing Uses Cannabis Cultivation N N N N N C 25.34.120 Cannabis Deliveni N N N N N C 25.34.120 Cannabis Distribution N N N N N C 25.34.120 Cannabis Manufacturing N N N N N C 25.34.120 Industrial planned unit development N N N N N P Light industrial and research and development N N N N N P Maintenance facility N N N N N P Pest control facility N N N N N P Preparation of foodstuffs N N N N N P Production of home and office decor accessories N N N N N P Warehouse or storage facility N N N N N P Temporary Uses See Section 25.34.080 1 The establishment may be permitted with an Administrative Use Permit but may be elevated to a Conditional Use Permit at the discretion of the ZA based on:parking,traffic, or other impacts. 25.16.040 Specific Use Standards The following provisions apply as indicated to the uses listed in Table 25.16-1 (Use Matrix for Commercial and Industrial Districts): A. Caretaker Housing. Permitted only when incidental to and on the same site as a permitted or conditional use. B. Residential (mixed use). Residential uses may be established and maintained to be compatible with the permitted or the approved conditional uses in the vicinity. C. Commercial Communication Tower. All communication towers and antennas shall satisfy the requirements of Section 25.34.130 (Communication Tower and Antenna Regulations). 16 PLANNING COMMISSIOl' =SOLUTION NO. 2706 D. Adult Entertainment. All uses defined as adult entertainment are required to meet the provisions established by Section 25.34.110 (Adult Entertainment Establishments). E. Commercial (ancillary). Applicable only to office and industrial complexes that occupy a minimum of two acres. Restaurant uses shall not exceed 10 percent of the gross leasable floor area and the total ancillary commercial uses, including restaurants, shall not exceed 25 percent of the gross leasable floor area of the complex. A Conditional Use Permit or Administrative Use Permit is required to review land-use compatibility and to ensure that adequate parking exists to serve the commercial use. F. Grocery Stores. Limited to a maximum building size of 10,000 square feet in PC-1, 30,000 square feet in PC-2, and 60,000 square feet in PC-3. G. Medical Offices, accessory. Permitted only when ancillary to and in conjunction with the operation of a hotel. H. Restaurants. Drive-through and drive-in facilities permitted by a Conditional Use Permit as follows: 1. Permitted locations. i. Within Freeway Commercial Overlay District ii. On the following streets and as indicated in Figure 25.10-2: Monterey Avenue and Portola Avenue from the northern city boundary to the north side of Gerald Ford Drive. 2. Development standards. i. Drive-through lanes and window facilities shall be designed in a manner that they are screened and/or not visible from surrounding public streets. J. Drive-through vehicle queue must be permanently screened and/or not visible from surrounding public streets. I. Vehicle Service and Storage Facility. The storage facility must be completely screened. 25.16.050 Development Standards The development standards included in Table 25.16-2 (Commercial and Industrial District Development Standards) are applicable to commercial and industrial districts. These standards, along with other development standards (e.g., landscaping requirements, signs, and parking standards) located in the zoning ordinance, are intended to assist property owners and project designers in understanding the City's minimum requirements and expectations for high-quality development. A. Special setback requirements. In addition to the setback requirements in Table 25.16-2 (Commercial and Industrial District Development Standards) the following special setback provisions apply: 17 PLANNING COMMISbiON RESOLUTION NO. 2706 1. On interior lots in the PC zone districts, setbacks shall be the lesser of the setback requirement listed in Table 25.16-2 (Commercial and Industrial District Development Standards). For exterior lots or projects perimeter adjacent to public streets the setback standards below shall apply. Said setbacks shall be measured from the property line. 2. Building setbacks from planned street lines: D. Table 25.16-2: Setbacks from Planned Street Lines Street Type Setback Distance Freeway 50 feet Major 32 feet Arterial 32 feet Collector 25 feet Local 25 feet 3. Where commercial districts abut a residential district, a fence or wall that is six (6) feet in height shall be located adjoining the property line except adjoining a required front yard. All commercial district property lines adjoining a residential district shall be landscaped with plant materials for an area 10 feet in depth. 4. All unpaved areas shall be landscaped and treated or maintained to eliminate dust. B. Exceptions. Development standards within the PC districts may be modified through the Precise Plan process as specified in Section 25.72.030Special standards within the Service Industrial (SI) district. Sound emanating from industrial properties shall be muffled so as not to become objectionable due to intermittence, beat frequency, or shrillness. The measurements of sound shall be measured at the lot lines and shall be measured in decibels with a sound level meter and associated octave band filter, manufactured according to standards prescribed by the American Standards Association. Maximum permissible sound pressure levels shall comply with the limits at table 25.16-2 and the following standards: 18 PLANNING COMMISSION RESOLUTION NO. 2706 Table 25.16-3: Maximum Permitted Decibels Octave Band in Cycles- Adjacent Residential District Lot Line of Use in the SI Second decibels Boundaries decibels Zone(decibels) 0-75 72 79 76-150 59 74 151-300 52 66 301-600 46 59 601-1200 42 53 1201-2400 39 47 2401-4800 34 41 Above 4800 32 1 39 1 . The maximum sound pressure level in decibels shall be 0.002 dynes per square centimeter. 2. Toxic gases or matter shall not be emitted which can cause any damage to health, animals, or vegetation, or other forms of property, or which can cause any excessive soiling beyond the lot lines of the use. 3. Vibration from any machine, operation, or process which can cause a displacement of .003 of 1 inch as measured at the lot lines of the use shall be prohibited. Shock absorbers or similar mounting shall be allowed, which will reduce vibration below .003 of 1 inch as measured at the lot lines. 4. Glare and heat from any source shall not be produced beyond the lot lines of the use. 5. Storage of refuse, trash, rubbish, or other waste material outside a permanent building shall be kept in enclosed containers in areas other than the front and side yards. 6. Lighting, including spotlights, floodlights, electrical reflectors, and other means of illumination for signs, structures, landscaping, parking areas, loading and unloading areas, and the like shall be shielded, focused, directed, and arranged as to prevent glare or direct illumination on streets or adjoining property. 7. Unless specific additional uses are permitted by the certificate of occupancy, the use of radioactive materials within the SI district shall be limited to measuring, gauging and calibration devices, as tracer elements, in x-ray and like apparatus, and in connection with the processing and preservation of foods. In no event shall radioactivity, when measured at each lot line, be in excess of 2.7 x 10-11 micro curies per milliliter of air at any moment of time. 8. Electrical and electronic devices and equipment shall be suitably wired, shielded, and controlled so that in operation they shall not, beyond the lot lines, emit any 19 PLANNING COMMISSION RESOLUTION NO. 2706 electrical impulses or waves which will adversely affect the operation and control of any other electrical or electronic devices and equipment. (Ord. 96 § 1, 1975, Exhibit A § 25.20-7.16) C. Special standards within the Office Professional (OP) district. 1 . When adjacent to single-story residential, the rear and exterior side yard setbacks shall be increased by 6.43 feet for each foot of building height above 18 feet up to 25 feet tall. See table below: Table 25.16-4: Additional Setback in OP District Height Setback Distance 19 feet 26.43 feet 20 feet 32.86 feet 21 feet 39.29 feet 22 feet 45.72 feet 23 feet 52.15 feet 24 feet 58.58 feet 25 feet 65 feet 2. Second-story Windows: Second-story windows are allowed to face adjacent single-story residential zones with sufficient screening; either with landscaping or another method as approved through the precise plan process. 20 Table 25.16-4: Commercial and Industrial District Development Standards Commercial/Industrial District OP PC-1 PC-2' PC-3' PC-4' SI Lot Dimensions Lot size, min 15,000 sf 3 ac 5 ac 30 ac 4 ac 20,000 sf Lot size, max None 10 ac 20 ac None None None Lot width, min 70' None None None No min 100, Lot depth, min 140' None None None No min 100, Setbacks2 Front yard, min 12 a in, 15 _ _ — 30' 20' vg Side yard, min (interior/exterior) 0'/20'3'4,' O'/20i3'4 0'/20'3'4 — 15' O1/10i5 Street side yard, min 12 a in 15 — — — — 10, Rear yard, min 0'/20'3.4 0'/20'3'4 0'/20'3'4 — 20' 0725'5 Coverage Floor Area Ratio 0.75 0.5 1.0 1.0 0.10 0.75 Residential Density Range 10.0— 10.0— 10.0— (mixed-use) 10.0 15.0 15.0 15.0 10.0 - Building Measurements Height, max (single-use) 40', 3 stories 35', 2 35', 2 35', 2 55', 4 40', 3 stories stories stories stories stories Height, max (mixed-use) 40 40 40 40 55 - No. of Stories (mixed-use) 3 3 3 3 4 - Building size, max8 — 10,000 sf 30,000 sf — — — — PLANNING COMMISSION RESOLUTION NO. 2706 Commercial/industrial District OP PC-1 PC-2' PC-3' PC-4' SI Landscaping Required landscaping, min 15% 15% 15% 20/° 20/°° 9 - - percentage of lot area Depth of landscaping in street 10, 10, 20' 30' 10, — — setback area, min Notes: 1. Development standards may be modified through the precise plan process as specified in Section 25.72.030. 2. See Section 25.16.050 A(Special Setback Requirements). 3. When an OP,PC-1 or PC-2 zone is adjacent to a commercially or industrially zoned property, the setback is zero. 4. When an PC-1,or PC-2 zone is adjacent to a residentially zoned property,the minimum required setback for a commercial structure or a joint use commercial and residential structure is equal to the building's height. 5. When an SI zone is adjacent to or across the street from residentially zoned property, the minimum side setback is 10 feet and the minimum rear setback is 25 feet. 6. The side yard setback may be 0 feet where the main building structure on the same lot line of the abutting parcel is set back at 0 feet and both parcels are developed at the same time. 7. When adjacent to single-story residential,see Section 25.16.050 E(Additional Setback in OP District). B. This standard refers to the maximum area for any single commercial enterprise. 9. For hotels,a minimum of 25 percent of the site area must be usable landscaped open space and outdoor living and recreation area with an adequate irrigation system. 22 PLANNING COMMISSION RESOLUTION NO. 2706 Exhibit C - 25.18.040 Land Use and Permit Requirements Amend Table 25.18-1. "Use Matrix for Downtown Districts" to the following: Land Use Zone Special Use Provisions D I D-O I DE DE-O Retail, Service, and Office Uses Cannabis Retail C N N N 25.34.120 Cannabis Testing Facilities C N N N 25.34.120 23 The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 760-778-4578/Fax 760-778-4731 State Of California ss: County of Riverside C_ r—n7o City of Palm Desert rG Sr_rr1 N m77a rn m Advertiser: CITY OF PALM DESERT JUL 2 7 2017 v ANC 73510 FRED WARING DR 2 -400 PALM DESERT CA 92260 �T.1 Order# 0002294657 Community Development ) r I am over the age of 18 years old, a citizen of the United States and not a party to, or have interest in this matter. I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non pariel) in each and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: NO 1039: CITY OF PALM DESERT Newspaper: The Desert Sun LEGAL NOTICE CASE NO.ZOA 17-027 NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO ADOPT A 7/22/2017 NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT;AND A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO AMEND AND RETITLE PALM DESERT MUNICIPAL CODE SECTION 25.34.120"MEDICAL CANNABIS USE"TO"CANNABIS USE AND REGULATIONS"AND SECTION 25.16"COMMERCIAL AND INDUSTRIAL DISTRICTS"TO ALLOW FOR CANNABIS BUSINESSES WITHIN THE CITY,SUBJECT TO A CONDITIONAL USE PERMIT. I acknowledge that I am a principal clerk of the The City of Palm Desert (City), in its capacity as the Lead Agency under the printer of The Desert Sun, printed and California Environmental Quality Act(CEQA), has determined that this Zoning Ordinance Amendment(ZOA)is exempt from CEQA review pursuant to Section published weekly in the City of Palm Springs, 15060(c)2 in that the proposed action will not result in a direct or reasonable foreseeable indirect physical change in the environment, and Section 15061(b)3 County of Riverside, State of California. The in that the ZOA to regulate the use of cannabis and cannabis businesses is not a "project"and is not subject to CEQA review.The Director of Community Devel- Desert Sun was adjudicated a Newspaper of opent therefore,is recommending that the Planning Commission adopt a No- general circulation on March 24, 1988 by the tice of m Exemption under the CEQA guidelines. Superior Court of the County of Riverside, Project Location:City-wide State Of California Case No. 191236. Code Amendment Description: Section 25.34.120 will be retitled to"Cannabis Use and Regulations" to reflect the allowance of both medicinal and adult use of cannabis in accordance with the Medical Cannabis Regulations and Safety Act(MCRSA)and the Adult Use of Marijuana Act(AUMA)approved by the California voters.The City's Ordinance will allow for retail and dispensary cannabis uses within the City's commercially zoned property,testing facilities within the City's Service Industrial and Office Professional zoned properties; and cultivation, distribution, and delivery in the I declare under penalty of perjury that the City's Service Industrial zones.All cannabis related businesses will be subject to a separation requirement of 1,500 feet from other cannabis related businesses, foregoing Is true and correct. Executed on and review and approval of a Conditional Use Permit(CUP).Cannabis business- es must also meet State guidelines imposed by the Bureau of Medicinal Canna- this 22nd day of/JUL'�, 2017 In Palm bis Regulations and are subject to State licensing requirements. Springs, California. Recommendation:Staff is recommending that the Planning Commission adopt a resolution supporting the changes to Zoning Ordinance, and allow the item to move forward to a public hearing with the City Council. Public Hearing:The public hearing will be held before the Planning Commission on August 1,2017,at 6:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date.The public comment period for this project is from July 20,2017 to August 1,2017. Public Review:The ZOA is available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court,the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at,or Declarant prior to, the Planning Commission hearing. All comments and any questions should be directed to: Eric Ceja,Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert,CA 92260 (760)346-0611 eceja@cityofpalmdesert.org RYAN STENDELL,Secretary Palm Desert Planning Commission Published:7/22/2017 w Ceja, Eric From: Carney, Lori Sent: Thursday, July 06, 2017 3:18 PM To: Ceja, Eric; Stendell, Ryan Subject: FW: California's New Cannabis Regulatory System: What Everyone Needs to Know Just in case you aren't on this mailing list... Lori Carney Director of Administrative Services Ph: 760.346.0611 Direct: 760.776.6332 Icarney@cityofpalmdesert.org From: Meyers Nave [mai Ito:newsletter@ meyersnave.com] Sent: Thursday, July 06, 2017 3:01 PM To: Carney, Lori Subject: California's New Cannabis Regulatory System: What Everyone Needs to Know m eye rs nave Mee eyersNave.com MEYERS NAVE LEGAL ALERT, CANNABIS LAW California's New Cannabis Regulatory System: What Everyone Needs to Know Governor Jerry Brown signed Senate Bill 94 last week, merging California's marijuana laws into a single regulatory system for medical and nonmedical commercial cannabis businesses. The budget trailer bill("SB 94")took effect immediately and covers everything from local control to county fair weed tastings to delivery businesses. The extensive legislation repeals the Medical Cannabis Regulation and Safety Act("MCRSA"), passed in 2015,and incorporates many of MCRSA's provisions into the Adult Use of Marijuana Act ("AUMA"),passed by the voters as Prop 64 in November 2016. The new comprehensive regulatory system,intended to regulate all commercial cannabis uses,is called the Medicinal and Adult-Use Cannabis Regulation and Safety Act("MAUCRSA"). Cities and counties across the state support SB 94's preservation of local control over cannabis businesses,which includes enforcing Fire and Building Codes at cannabis businesses.The cannabis industry also scored some wins. For example, SB 94 creates a less confusing licensing system and fewer restrictions on vertical integration of cannabis businesses. A cultivator may now act as its own distributor and conduct internal testing for quality control. Highlights of SB 94 include: 1 • Single regulatory system: Gone are the two separate licensing structures for medical and / nonmedical cannabis businesses. MAUCRSA establishes 20 license types,including 14 l cultivation licenses,two manufacturing licenses,one testing license,one retailer license,one distributor license,and one microbusiness license. With the exception of the testing license, the state will designate each license with an"M"or an"A"to indicate whether it is a medical or an adult-use license. If a local ordinance identifies types of licenses under the previous statutes established by MCRSA or AUMA,it is likely that ordinance will require an amendment to ensure consistency with the new license categories. • Multiple licenses:Under MCRSA,numerous restrictions existed on how many licenses one individual or entity could hold and in which license categories. MAUCRSA eliminated these restrictions and allows multiple licenses in nearly all categories. However,a testing laboratory licensee may not hold any other cannabis license type,nor may that testing lab license holder employ anyone who works at a non-testing cannabis business. Under MAUCRSA,the prohibition in AUMA on large cultivation licensees holding distributor or microbusiness licenses now applies to both medical and nonmedical cannabis licenses. The state will not issue large cultivation licenses,meaning greater than one acre outdoors or 22,000 square feet indoors,until January 1,2023. • Multiple locations:When one business holds two or more licenses,MAUCRSA requires that the"licensed premises be separate and distinct." Additionally,a business with multiple locations is required to obtain a license for each location where"cannabis activity"takes place. • Delivery businesses:Those with a retail cannabis license or delivery operations will now be allowed to operate from a physical location that is closed to the public. This means that delivery operations-for medical or nonmedical cannabis-do not need to be tied to a dispensary. • Outsiders welcome:SB 94 eliminated AUMA's requirement that,through 2019,the state would only issue commercial cannabis licenses to those who could prove California residency. • Local control: SB 94 clarifies that cities and counties retain full land use authority as to cannabis businesses;cities and counties may prohibit such businesses entirely,allow only some,or allow them with locally developed regulations that fit local needs. SB 94 also establishes that local jurisdictions retain the authority to regulate cannabis businesses and to take enforcement action concerning Fire and Building Codes,conduct inspections,and implement audits. • Local authorization:The state is now required to notify a local jurisdiction when it receives an application for commercial cannabis activity in that jurisdiction. The city or county then has 6o business days to notify the state whether the applicant is in compliance with local regulations. Although proof of authorization from a city or county is not required, an applicant may voluntarily include this information with its state application. The state is also prohibited from issuing a cannabis license if issuance would violate any local ordinance. Cities and counties should review the provisions of Business and Professions Code section 26055 regarding submitting copies of local ordinances and regulations on cannabis uses to the state. • CEQA exemption:Through July 1,2019,SB 94 exempts from the California Environmental Quality Act("CEQA")the adoption of an ordinance or regulation by a local jurisdiction if the ordinance or regulation requires discretionary review and approval of local permits or licenses for commercial cannabis activity. • Cash collection:SB 94 requires that,by January 1,2018,the Bureau of Cannabis Control work with the Department of General Services to establish offices to collect fees and taxes in the counties of Humboldt,Trinity,and Mendocino. • Lighting up at county fairs:The state may issue temporary event licenses allowing people 21 and older to consume cannabis and cannabis products at a county fair or district 2 agricultural association event. These event licenses may only be issued if the local jurisdiction allows the events. • State I.D.program: SB 94 retains the requirement that a qualified patient possess a State Medical Marijuana I.D.Card in order to be exempt from paying sales and use tax on cannabis purchases. This means that approximately$23 million or more in tax revenue will continue to flow to local jurisdictions. If you have questions regarding the new comprehensive regulatory system established by SB 94, please contact Ruthann G.Ziegler or Katherine A.Cook. AUTHORS �►utbann G.Ziegler bidding,uthann Ziegler,a Principal at Mel ers Nave,has Over'35 years of experience in pub]ic law, representing municipalities and special districts. She serve,,;as Chair of the California Public Records Act Practice Group. Ruthann represents clients in all matters affecting local governance and decision-making,from day-to-day operations to long-term policy ::issues. She regularly adAises clients on issuess such as rate setting,public contracts and ;land use,public power and environmental issues. Katherine A.Cook ine(Kate)Cook brings considerable experience to the Municipal and Special athei District Law,and California Public Records Act Practice Groups. She seil!es as Citv Attorney for the City of Plymouth and Deputy City Attorney for the City of Rancho Cordova,and counsels public entity clients on issues related to the Public Records Act,the Brown Act,election law,and.marijuana regulations. Meyers Nave legal alerts do not constitute legal advice and do not create an attorney-client relationship. Recipients should seek the advice of an attorney before acting or relying upon legal alert information. To the extent this communication might be considered attorney advertising, this legal alert does not constitute a guarantee,warranty or prediction regarding the outcome of a recipient's legal question or matter. This email was sent to: Icarnev@citvofoalmdesert.oro This email was sent by: Meyers Nave 555 12th Street, Suite 1500, Oakland, CA, 94607 Go here to remove your address from our publication lists. You may choose to "Unsubscribe from All" or to unsubscribe from specific available publications. Go here to modify your subscriber information. 3 �- LEAGUEDOF rr M RNIA CITIES , . i June 13,2017 The Honorable Edmund G.Brown,Jr. Governor of the State of California State Capitol Sacramento,CA 95814 RE: AB 110(Committee on Budget)and SB 94 (Committee on Budget and Fiscal Review)—Cannabis Notice of Support Dear Governor Brown: On behalf of the California Police Chiefs Association and the League of California Cities,we are pleased to express our support for Assembly Bill 110 and Senate Bill 94. We acknowledge that arriving at the current language of these trailer bills has been a long and difficult process. We very much appreciate the hard work and responsiveness of the Governor's Administration and his staff to addressing our concerns. We also want to acknowledge the work of the authors of the Medical Cannabis Regulation and Safety Act(the Act)of 2015 for their staunch advocacy,solidarity and support in addressing our concerns with the initial draft of the Trailer Bill. In addition,the staff in the Senate Pro Tem's office and the Speaker's office,as well as the Budget Committee staff in both houses over the past nine weeks for their receptiveness in listening to and working to resolve our points of concern. We are gratified by the dialogue we have had with various industry stakeholders which has led to a deeper understanding of the core concerns of all parties. Our objections to the initial draft of the Trailer Bill centered on public safety,local control,including codification of local regulatory and enforcement authority consistent with the model created by the Act,as well as several provisions from the Act not initially carried over that protected the public health,children,fragile neighborhoods,and the environment. We are grateful for the restoration of much of this language,as it is our sincere belief that it is in the public interest. We are particularly appreciative of the codification of local regulatory and enforcement capability along the lines we have suggested. We are pleased to now state publicly that the overwhelming bulk of our concerns have been addressed by the current vehicles,Assembly Bill 110 and Senate Bill 94. However,in supporting this measure we must also publicly express our support for Assembly Bill 64(Bonta), which contains important regulatory provisions not addressed in either AB 110 or SB 94. In addition,we remain concerned about two issues in particular which we have raised but have not been addressed by the Trailer Bills. First,neither vehicle contains sufficient restrictions on cannabis advertising with respect to all business entities, not merely licensees. Second,neither vehicle contains the requested clarification of local governments' eligibility for grant funds under Proposition 64 for regulatory and enforcement purposes,based on the licensing activities that they choose to allow and/or prohibit within their respective jurisdictions. We will continue to seek legislative solutions to these issues. Respectfully Submitted, Lauren Michaels Tim Cromartie Legislative Affairs Manager Legislative Advocate California Police Chiefs Association League of California Cities cc: The Honorable Holly Mitchell,Chair, Senate Committee on Budget and Fiscal Review The Honorable Phil Ting,Chair,Assembly Budget Committee Joe Stephenshaw,Deputy Staff Director, Senate Committee on Budget and Fiscal Review Genevieve Morelos,Consultant,Assembly Budget Committee The Honorable Rob Bonta,Member of the Assembly The Honorable Ken Cooley,Chair,Assembly Rules Committee The Honorable Reginald Jones-Sawyer,Member of the Assembly The Honorable Tom Lackey,Member of the Assembly The Honorable Jim Wood,Member of the Assembly The Honorable Mike McGuire,Member of the Senate Page 1 California Model Cannabis Ordinance Overview The following model ordinance was drafted to enable California local governments to develop a State-compliant framework for authorizing local permitting of cannabis businesses while ensuring public safety and moving towards minimizing the cannabis black market. The initial draft of the model ordinance was drafted from a combination of the best elements of the current cannabis ordinances that have been enacted in California combined with some elements of successful regulations that have emerged in other states. The draft was then conformed to comply with MCRSA and AUMA. The resulting draft was then circulated for comments and input from city attorneys, law enforcement, patient advocacy groups, NGO's and local governmental leadership. To ensure compliance with California State law, this ordinance incorporates all applicable State law from both the 2015 State medical cannabis package — the Medical Cannabis Regulation and Safety Act (MCRSA) — and the 2016 voter-approved adult-use cannabis initiative — Proposition 64—the Adult Use of Marijuana Act (AUMA). This ordinance is comprehensive, containing regulatory criteria for all cannabis business licensing categories (cultivation, manufacturing, testing, distribution, transportation and retail), and providing local governments with the local control and flexibility to remove or approve licensing categories as it best suits the applicable community. The ordinance is structured generally as follows: • Sec. XX.02 Definitions of All Relevant Terminology • Sec. XX.05 Business Standards. Highlights zoning and land use, cannabis business siting procedures (such as conditional use permits), cannabis business licensing categories, basic regulatory criteria for all cannabis businesses (cultivation, manufacturing, testing, distribution, transportation and retail), covering requirements for security, hours of operation, ventilation and signage; • Sec. XX.06 and XX.07 Application Requirements. Highlights criteria which all cannabis businesses should meet in order to receive consideration for a local license to operate, related licensing fees, as well as conditions for which a jurisdiction would deny permission to operate; • Sec. XX.08 Enforcement. Highlights punitive measures a local jurisdiction should take to terminate operations of a cannabis business that is out of compliance with local and/or State law, as well as related fines for code violations; • Sec. XX.12— XX.16 Cannabis Business Licensing. Highlights specific regulatory requirements for the operation of cannabis businesses in all licensing categories, including cultivation, manufacturing, testing, distribution, transportation and retail; and • Sec. XX.17 Taxation. Highlights tax assessment and flat fee options for cannabis businesses. In the event you have any questions, comments or revisions, please contact us at CAORD*wmpolicy.com. DRAFT 5-16-17 Page 1 California Model Cannabis Ordinance The following draft ordinance was drafted to enable Cities to develop a State-compliant framework for permitting marijuana businesses. It was drafted with inputs from stakeholders including city attorneys, NGO's, law enforcement, patient advocacy groups and local governmental leadership. Revision History Draft Material Revisions Date 4-6-17 Inclusion of additional preamble materials. 4-30-17 Update to include alternative governance provisions in Section XX.05. Addition of background text provisions. Inclusion of language to mirror AUMA w/r/t Lessors in SECTION 2.XX.06(a)(7). 5-16-17 Addition of cover introduction. Expansion of commentary on tax and illegal markets. DRAFT 5-16-17 Page 2 Commentary and Drafting Notes 1. Editing Notes. 1.1. City Name. Conduct a find and replace for [CITY NAME] to fill correct name. 1.2. Chapter Number. The Model Ordinance is drafted to be a chapter insertion in the city code. Setting the chapter number can be accomplished by changing the [XX] references to the applicable chapter number and changing the "XX" numbering prefixes in the autonumbering to the appropriate chapter. 1.3. Ordinance Number. The number of the City ordinance may be inserted by doing a find and replace on the term [ORD NO]. 1.4. Permit Zones. The definition of Permit Zones should be modified to reflect the zoning areas in which the different types of permits may be placed. For example, to the extent cultivation is desired to only be placed in light industrial zones, this can be accomplished by editing the definition of Permit Zones with respect to Cultivation Permittees. 1.5. Tax Method. In Section XX.17 there are multiple options for tax or fee structures. Each of these would require an affirmative vote by the voters of the City to comply with the requirements of California Prop 62. Delete the non-desired options. 2. La scape of State Law. 1. State buffer zones for permittees. The Model Ordinance does not include zoning restrictions beyond what is required under state law. Proposition 64 prohibits all licensees from being located within 600 feet of a school, day care center, or youth center (See BPC Section 26054). Medical marijuana establishments are prohibited from locating within 600 feet of a school (See Health and Safety Code Section 11362.768). Both Proposition 64 and the Medical Cannabis Regulation and Safety Act give local governments authority to establish more or less restrictive zoning and land-use standards. Considering that each California city and county has unique needs in regards to zoning and land-use, we feel that it is best for local jurisdictions to make these determinations. We urge caution in any increase in either the radius of zoning restrictions or the number of business types to which this zoning restriction applies. Both changes have the effect of overly limiting marijuana businesses from having access to suitable real estate, push marijuana businesses to low income neighborhoods and increase illegal market levels due to decreased patient access. /2- State advertising rules for Cannabis. The Model Ordinance does not include a chapter devoted to advertising of cannabis and cannabis products as there are extensive rules under state law regarding this issue. Among other restrictions, Proposition 64 prohibits state licenses from advertising or marketing that is fraudulent, encourages persons under 21 to consumer marijuana, or is within 1,000 feet of a daycare center, school, playground, or youth center (See Chapter 15 of Division 10, commencing with Section 26150, of the Business and Professions Code [BPC] for Proposition 64 advertising statutes). In addition to Proposition 64's advertising rules, there are several state and DRAFT 5-16-17 Page 3 federal laws regarding cannabis advertising the cannabis industry is subject to, some of which are listed below: 2.2.1. BPC 2525.5 - Prohibits advertising for physician recommendation for medical marijuana unless the advertisement includes a specified notice to consumers. 2.2.2. BPC 22580 - Prohibits advertising drug paraphernalia and controlled substances towards minors. 2.2.3. BPC 17200 - California's unfair completion law, which prohibits ANY fraudulent or misleading advertisements. 2.2.4. 21 U.S. Code SS 843 - Prohibits advertising Schedule-I substances. 2.3. State tax regime. Proposition 64 created new excises taxes for cannabis sales and cultivation. Cannabis is subject to the following state taxes: 2.3.1. etail Excise Tax: Proposition 64 imposes a 15% tax on all.-retail sales of annabis, though medical cannabis purchased by patients with ID cards is exempt,-' 2.12. Cultivation Excise Tax: Proposition 64 also imposes a per weight tax on cannabis cultivation, at $9.25 per ounce of marijuana flowers and $2.75 per ounce of cannabis leaves. A. State Sales and Use Tax: Cannabis is subject to the state sales and use tax. The current base sales and use tax rate is 7.25%. In most areas of California, local jurisdictions have added district taxes that increase the tax owed by a seller. For example, parts of L.A. County have a rate exceeding 9%. 3. City Considerations. 3.1. Choice of City Taxation or Fee Collection Model. 3.1.1. There are a variety of cannabis tax and fee models that cities across California have utilized. Examples include taxing gross receipts, square footage, or some combination of both gross receipts and square footage. Section XX.17 of this model ordinance provides three taxation models for consideration. Whichever tax model is utilized, cannabis taxes should be tailored conservatively so as not to enable illegal market activity. Consider that before cannabis and cannabis products are sold to a consumer, all the following charges need to be accounted for: ➢ $9.25 State cultivation tax per dry-weight ounce of cannabis flowers. ➢ $2.75 State cultivation tax per dry-weight ounce of cannabis leaves. ➢ 15% State excise tax on retail sales of cannabis and cannabis products. ➢ State licensing fees. DRAFT 5-16-17 Page 4 ➢ Compliance costs (e.g. video surveillance, insurance premiums, track and trace software, among other compliance measures required by state and lot/al law). ➢ Energy and water usage costs. 3.1.2. Optimizing Tax Revenue. 3.1.2.1. High taxes and fees drive up the cost of cannabis in regulated markets, allowing,.illicit operators to undercut prices. High tax rates have also had counter-productive results at the state and loc level, as operators that would be otherwise compliant with state and loc laws to stay in the shadows to preserve their bottom line. To optimize//revenue generation, taxes and fees should be structured to keep retail prices low enough which encourages participation in the regulated systerp`and helps to phase out illegal market activity. f r,, 3.1.2.2. Taxes and fees should be structured to fund enforcemeof and local community reinvestment strategies while helping to keep retail prices low enough to phase out illegal�riiarket activity. 3.2. Presenting Taxation/Fees to the Voters. 3.2.1. Ability to Tax. California cities and counties have broad authority under state law to establishes taxes on commercial cannabis activity. Like all other local taxes, taxes on commercial cannabis activity are subject to voter approval. To raise revenue for purposes other than regulating commercial cannabis activity, local governments would have to go to voters. A Look at Voter Approval Requirements for Local Taxes, a report by the California Legislative Analyst's Office, provides an overview of voter approval requirements for taxes. 3.2.2. Fees That Do Not Require Voter Approval. Regulatory fees are not subject to voter approval. Fees need to be narrowly tailored to address the specific activity being regulated. Fees cannot exceed the local jurisdictions reasonable regulatory costs and must provide a service directly to the fee payers. It is important to consult with city or county counsel and plan appropriately to ensure regulatory fees are appropriately structured. 3.3. Permit te livery. 3.3.1. are ral businesses that offer only delivery or contract with dispensaries to deliver products. Creating a delivery permit or sub-permit would be consistent with existing business practices, and provide more transparency and traceability for regulators. Additionally, it would allow cities to provide sufficient access to medical patients while keeping store front dispensary density at reasonable levels. To meet the state's public protection goals, delivery best practices should be established. Leading delivery businesses have already implemented rules like GPS tracking for drivers; maintaining a central delivery headquarters that can be inspected; secure in- vehicle storage requirements; real-time inventory tracking for all delivery vehicles; DRAFT 5-16-17 Page 5 and regular vehicle inspections. Correspondingly, the rules crafted should be conservatively tailored to ensure that undue costs aren't placed on nascent licensees and to ensure that operators exit the illegal market. 3.4. Permitting Self-Distribution. 3.4.1. Independent distribution is problematic for a variety of reasons. It is especially problematic for marijuana products because marijuana (and derivative products) are perishable agriculture products which have specific storage requirements and a finite shelf life. Additionally, pests in product batches have the ability to contaminate a co-located marijuana products. Independent distribution introduces an additional layer of cost (which may exceed 20-30%) that can render the products leaving the jurisdiction too pricey to be competitive on the market. 3.4.2. To the extent allowed under state law, local jurisdictions should at a minimum allow permittees to distribute their own cannabis and cannabis products. The mandatory, three-tiered distribution model has been tied to numerous harms in the alcohol industry ranging from the inability of craft distillers to access the market, to inflated distribution costs, to the entrance of organized crime. Increased prices caused by the independent, three-tiered distribution requirement will only cause consumers to turn to the illegal market and harm product quality by letting perishable cannabis products languish in distribution centers. 3.4.3. Self-distribution is a strong selling point to attract brands and businesses to a particular jurisdiction. Conversely, allowing the use of independent distributors is also recommended to enable the most flexibility for business operators. 3.5. Regulatory structures. 3.5.1. A city may organize regulatory responsibility and oversight over commercial cannabis activity in several ways. Section XX.05 of this model ordinance provides two options for consideration. Governing Structure Alternative 1 would create a new board appointed by the city council to issue permits and provide oversight. Governing Structure Alternative 2 gives this authority to the City Manager and builds out the complete regulatory structure. If a city would like to utilize Governing Structure Alternative 1, this be accomplished by replacing the phrases "City Manager or the City Manager's designee" and "City Manager"with"The Board." 3.5.2. To the extent expediency is desired, a board of just City Council Members may be utilized or a single approving officer may be designated (which could include the City Manager acting in this role). 3.6. Outdoor Cultivation. 3.6.1. Indoor cannabis cultivation requires a significant amount of energy. A typical indoor grow room for marijuana has a power density of about 200 watts per square foot. There will likely be areas in the state that lack the necessary infrastructure, especially in the short term, to distribute power to cannabis cultivation facilities. DRAFT 5-16-17 Page 6 Outdoor and greenhouse cultivation require much less energy and are a viable option for jurisdictions seeking to limit energy consumption by the cannabis industry. There are steps local jurisdictions can take to ensure outdoor or mixed light cannabis cultivation is done safely and discreetly, which will help to significantly balance energy demand. 3.7. Permit Zoning Regions. 3.7.1. Zoning and licensing can be powerful tools in controlling the number and location of business types in a jurisdiction, however a thoughtful approach to zoning is necessary to achieve desired outcomes for the cannabis industry. For example, just as artificially capping the number of marijuana dispensaries would fail to crowd out the illicit market, so would overly restrictive zoning. This is so because restrictive zoning and artificial cannabis industry business density caps will deprive marijuana businesses of the most fundamental features desired by all consumers— convenience and accessibility. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 1 ORDINANCE NO. [ORD NO] AN ORDINANCE OF THE CITY COUNCIL OF [CITY NAME], COUNTY OF [COUNTYNAME], CALIFORNIA,ADDING CHAPTER [XX] REGARDING CANNABIS PERMITTING AND REGULATION. WHEREAS, on October 9, 2015, Governor Brown approved the Medical Marijuana Regulation and Safety Act ("MMRSA"), effective January 1, 2016, which establishes a comprehensive State of California licensing and regulatory framework for the cultivation, manufacturing, testing, distribution, transportation, dispensing, and delivery of medical cannabis, and which recognizes the authority of local jurisdictions to prohibit or impose additional restrictions on any such medical cannabis activity. WHEREAS, on June 27, 2016, Governor Brown approved Senate Bill number 837 ("SB 837"), effective immediately, which amends the MMRSA and renames it the Medical Cannabis Regulation and Safety Act ("MCRSA"). WHEREAS, on November 9, 2016, the Adult Use of Marijuana Act ("AUMA") was passed into law as a voter initiative by the voters of the State of California. WHEREAS, the AUMA legalizes the non-medical adult use of marijuana by adults age 21 and over, imposes taxes on the retail sale and cultivation of marijuana, and reduces penalties for marijuana-related crimes. WHEREAS,the City of[CITY NAME] ("City") wishes to establish Chapter [XX] to the City Municipal Code ("MC") to create a comprehensive regulatory framework for medical and non-medical adult use cannabis and to reflect SB 837's changes to the MCRSA and the passage of AUMA. WHEREAS, it is the purpose and intent of the City to regulate Cannabis in a manner that is consistent with California law and promotes the health, safety, and general welfare of the residents and businesses within the City, while limiting any negative impacts. WHEREAS, the City intends to be on the forefront of groundbreaking research, science, innovation, and development of treatment for symptoms and cures in the field of cannabis, as scientific research, studies, and data have established that cannabis can help patients with a vast array of medical conditions that affect human beings. WHEREAS, the City desires to reduce the illegal market for Cannabis while minimizing the chances of social harm and creating jobs and tax revenue for the City. WHEREAS, nothing in this Ordinance No. [ORD NO] (this "Ordinance") shall be construed to allow persons to engage in conduct that violates the law, endangers others, causes a public nuisance, allows the illegal use or diversion of Cannabis, or allows any activity relating to Cannabis that is otherwise illegal under California state law, as amended, except to the extent otherwise specifically set forth. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF [CITY NAME] DOES ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein. SECTION 2. MC Chapter [XX] (Cannabis Permitting and Regulation) is hereby added, and is to read in its entirety as follows: XX.01 Intent and Purposes The intent and purpose of this Chapter is to regulate Commercial Cannabis Activity (as defined below) in accordance with State Law (as defined below) to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MCRSA and AUMA. The goals of this regulation for Commercial Cannabis Activity include: (a) To minimize the size of the illegal market for Cannabis in the City and the surrounding regions. (b) To create jobs, tax revenue and economic growth for the City and its residents. (c) To enable law enforcement and regulators to have sufficient rights to inspect and audit Cannabis Permittees and take expeditious action against Cannabis Permittees who violate the requirements of this Chapter. (d) To minimize social harms which may arise from Cannabis including youth consumption or intoxicated driving. (e) To regulate the manner of advertising and location of Cannabis Permittees such that public nuisance is minimized. XX.02 Definitions. For purposes of this Chapter, the following definitions shall apply, unless the context clearly indicates otherwise: (a) "Adult Use Cannabis" means the non-medical use of cannabis by adults of age 21 and over as permitted by AUMA and other applicable State and City laws. (b) "Adult Use Permittee" means a Person who is issued a City Permit to engage in Commercial Cannabis Activity with respect to non-medical Adult Use Cannabis in accordance with applicable City law and State Law, including AUMA. (c) "AUMA" shall have the meaning assigned to such term in the Preamble of this Ordinance. (d) "Cannabis" shall have the meaning assigned to the term "Marijuana" as set forth in Health and Safety Code Section 11018. (e) "Cannabis Premises" means (i) a building, (ii) a defined portion of or unit in a building with a separate mailing address, or (iii) a parcel of real property, in each case, where a specified user, owner, tenant, or City Permittee is utilizing the space for Commercial Cannabis Activity. In a building with multiple units, each defined unit shall be deemed a single Cannabis Premise. (0 "Cannabis Permit" means a permit issued by a city in the State (as defined below), including the City, and a license issued by the State, in each case, in accordance with, and DRAFT 5-16-17 Ordinance No. [ORD NO] Page 3 to the extent required by, applicable State Law, in order to participate in a Commercial Cannabis Activity, such as Cultivation, Manufacturing, Distribution, Transportation, Testing, retail sale, or Delivery. (g) "Cannabis Permittee" means a Person who holds a Cannabis Permit. (h) "Cannabis Product" shall have the meaning assigned to the term "Marijuana Product"as set forth in Health and Safety Code Section 11018.1. (i) "City" shall have the meaning assigned to such term in the Preamble of this Ordnance. 0) "City Code" means the City of[CITY NAME] Municipal Code. (k) "City Council" means the current members of the city council of the City. (1) "City Manager" means the individual duly appointed by a majority of the City Council to serve in the capacity as executive officer of the City on a permanent or interim basis or such other o ed by the City to fulfill such duties. (m) "Ci t" means a Cannabis P t issued by the City. (n) GG ity ermittee" ns a Person that has been issued a City Permit. (o) C mmercial Cannabis Activity" shall i) have the meaning assigned to the term "co ercial marijuana activity" as set forth in Business and Professions Code Section 260 d) when the context of such use of a term "Commercial Cannabis Activity" is with r spect to Adult Use Cannabis under UMA, and (ii) have the meaning assigned to the t "commercial cannabis activity' as set forth in Business and Professions Code Section 300.50) when the conte of such use of the term "Commercial Cannabis Activity" is ' h respect to medi annabis under MCRSA. (p) "Cultivation"means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis. (q) "Cultivation Permit" means a City Permit for the Indoor Cultivation of Cannabis in accordance with the terms and conditions of this Chapter and the conditions of approval for the applicable City Permit issued to the particular Cultivation Permittee. (r) "Cultivation Permittee" means an applicant who has applied for and has been issued a Cultivation Permit by the City pursuant to the terms and conditions of this Chapter. (s) "CUP" means a Conditional Use Permit issued by the City in accordance with City Code. (t) "Deliver" or "Delivery" means the commercial transfer or delivery of Cannabis or Cannabis Products to a customer, patient, primary caregiver or Cannabis Permittee. (u) "Distribution" means the procurement, sale, and Transport of Cannabis and Cannabis Products between Cannabis Permittees. (v) "Distribution Permit" means, with respect to a Distribution Permittee, a City Permit for Distribution in accordance with the terms and conditions of this Chapter and the conditions of approval for the applicable City Permit issued to such Distribution Permittee. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 4 (w) "Distribution Permittee" means a Person that has been issued a Distribution Permit f e ursuant to the terms and conditions of this Chapter. r .(x) "Fully nclosed and Secure Structure" means a space within a building, J' greenhouse r other structure which has a complete roof enclosure supported by connecting alls extending from the ground to the roof, which is reasonably secure against authorized entry, provides complete visual screening or is behind fencing or oth eatures providing complete visual screening, and which is accessible only through ne or more lockable doors and is inaccessible to minors. For the avoidance of doubt, this shall not prohibit a full greenhouse facility provided that the combination of fencing and other physical barriers provides a reasonably secure barrier to entry. [Drafting Note: This does not allow for outdoor cultivation. Alternative language can be provided for enclosed outdoor cultivation which may offer benefits depending on climate in region. The restriction in Section XX.11(c) should be removed.] (y) ["Gross Receipts" means the total amount of the sales of a City Permittee, valued in money, whether paid in money or otherwise, without any deduction for the cost of materials used, any costs of transportation of the City Permittee, or any other expenses.] [Drafting Note: Remove if Alternative 1 not used under Section XX.17.] (z) "Health and Safety Code"means the California Health and Safety Code, as amended from time to time. (aa) "Indoor" means within a Fully Enclosed and Secure Structure. (bb) "Manufacture" means to compound, blend, extract; infuse, or otherwise make or prepare a Cannabis Product from such blends, extractions or infusions. (cc) "Manufacturing Permit" means a City Permit to Manufacture in accordance with the terms and conditions of this Chapter and the conditions of approval for the applicable City Permit issued to the particular Manufacturing Permittee. (dd) "Manufacturing Permittee" means a Person that has been issued a Manufacturing Permit by the City. (ee) "MCRSA" shall have the meaning assigned to such term in the Preamble of this Ordinance. W) "Medical Permittee" means a Person who is issued a City Permit to engage in Commercial Cannabis Activity with respect to medical Cannabis in accordance with applicable City law and State Law, including MCRSA. (gg) "MMRSA" shall have the meaning assigned to such term in the Preamble of this Ordinance. ) "Modular Building" means a structure that is transportable in one or more sections and is designed and equipped for the Manufacturing of Cannabis Products. (ii) "Ordinance" shall have the meaning assigned to such term in the Preamble of this Ordinance. (b) "Outdoors" means any location within the City that is not within a Fully Enclosed and Secure Structure iL DRAFT 5-16-17 Ordinance No. [ORD NO] Page 5 (kk) "Permit Zone" means, with respect to a Person holding a City Permit, the zones or portions of the City where such City Permit type is permitted to operate. Such Permit Zones may be amended from time-to-time by a majority vote of the City Council. To the extent not otherwise specified in this definition, a Cannabis Permittee shall be able to operate in any portion of the City which complies with the zoning, radius and other requirements of Section XX.05. The initial Permit Zones shall be as follows: (1) With respect to Retail Permits, [Insert Zoning areas]. (2) With respect to Cultivation Permits, [Insert Zoning areas]. (3) With respect to Distribution Permits, [Insert Zoning areas] or, if such Distribution Permit is held by a Permittee who also holds another City Permit type, the location where the operations of such City Permit type are conducted (e.g. the site of a Cultivation Permit). (4) With respect to Transportation Permits, [Insert Zoning areas] or, if such Transportation Permit is held by a Permittee who also holds another City Permit type, the location where the operations of such City Permit type are conducted (e.g. the site of a Cultivation Permit). (5) With respect to Manufacturing Permits, [Insert Zoning areas]. (6) With respect to Testing Permits, [Insert Zoning areas]. (11) "Person" includes any individual, firm, co-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 the plural as well as the singular. (mm) "Physician Services" means the consultation by a State-licensed physician of a patient with the possible recommendation by such physician of medical Cannabis for such patient. (nn) "Retail Establishment" means a premises where Cannabis or Cannabis Products are offered, either individually or in any combination, for retail sale or Delivery pursuant to State Law, including AUMA for recreational Cannabis and MCRSA for medical Cannabis, including an establishment that sells and Delivers Cannabis or Cannabis Products to customers, patients or primary caregivers pursuant to State Law. (oo) "Retail Permit" means a City Permit to sell and Deliver Cannabis and Cannabis Products to customers, patients and primary caregivers in accordance with the terms and conditions of this Chapter and the conditions of approval for the applicable City Permit issued to the particular Retail Permittee. (pp) "Retail Permittee" means a Person that has been issued a Retail Permit by the City pursuant to the terms and conditions of this Chapter. (qq) "State"means the State of California. (rr) "State Law" means all laws of the State, including all rules and regulations adopted by State agencies and State regulatory entities. DRAFT 5-16-17 AA Ordinance No. [ORD NO] Page 6 (ss) "State Medical License" means a State license issued pursuant to Chapter 3.5, commencing with Section 19300, of the Business and Professions Code, as amended or replaced. (tt) "State Adult Use License" means a State license issued pursuant to Division 10, commencing with Section 26000, of the Business and Professions Code, as amended or replaced. (uu) "Testing" means the laboratory Testing of the quality, makeup or purity of Cannabis and Cannabis Products as required by applicable State Law. (vv) "Testing Permit" means a City Permit for Testing the quality and makeup of Cannabis and Cannabis Products pursuant to the terms and conditions of this Chapter and the conditions of approval for the applicable City Permit issued to the particular Testing Permittee. (ww) "Testing Permittee" means a Person who has been issued a Testing Permit by the City pursuant to the terms and conditions of this Chapter. (xx) "Transportation Permit" means a City Permit to Transport Cannabis and Cannabis Products between Cannabis Permittees pursuant to the terms and conditions of this Chapter and the conditions of approval for the applicable City Permit issued to the particular Transportation Permittee. (yy) "Transportation Permittee" means a Person that has been issued a Transportation Permit by the City. (zz) "Transport" means the transfer of Cannabis and Cannabis Products from the business location of one Cannabis Permittee to the business location of another Cannabis Permittee, for the purposes of conducting Commercial Cannabis Activity. (aaa) "Volatile Solvent' means a Class I Flammable liquid as defined by the National Fire Protection Association, including butane and propane. XX.03 Commercial Cannabis Activity Prohibited. All Commercial Cannabis Activity within the City is prohibited except as permitted by this Chapter. XX.04 Commercial Cannabis Activity Conditionally Permitted. Commercial Cannabis Activity is conditionally permitted in the City only as expressly specified in this Chapter. XX.05 Business standards. Commercial Cannabis Activity within the City shall be in conformance with the following standards: [Governing Structure Alternative I — Create a governing board/permitting authority or standalone department] [Drafting Note: Insert definition - "Board" means the Board of Marijuana Regulation, as established by Section XX.05.] (a) The Board shall consist of 5 members to be nominated by the mayor/chair and confirmed by the city council. The members of the board shall consist of: (1) One representative from the cannabis industry. (2) One representative from the police department DRAFT 5-16-17 Ordinance No. [ORD NO] Page 7 (3) One representative from the medical field (4) One qualified patient or primary cannabis caregiver (5) One representative from the City Council (b) The composition of the Board may be changed by a majority vote of the City Council. (c) The Board shall have the duty and authority to administer and enforce the provisions of this chapter. (d) Subject to the approval of City Council, the Board may hire staff, including but not limited to an executive director, as necessary and appropriate, to administer and enforce this chapter. (e) Commercial Cannabis Activity shall only be allowed upon application and issuance of a City Permit and a CUP by the Board in accordance with the criteria and process set forth in this Chapter and City Code. The Board may approve applications or operations that vary from the criteria set forth in this Section and City Code to further achieve the aims of City Code and the City. [End of Governing Structure Alternative ]] AiGoverning Structure Alternative 2 — Utilize the local governments existing structures, e.g. i Mity Manager] (f) Commercial Cannabis Activity shall only be allowed upon application and issuance of a City Permit and a CUP by the City in accordance with the criteria and process set forth in this Chapter and City Code. The City Manager or the City Manager's designee may approve applications or operations that vary from the criteria set forth in this Section and City Code to further achieve the aims of City Code and the City. [End of Governing Skrructure Alternative 2] (g) coning and Land Use. (1) Prohibition Near Schools. Following the enactment of this Chapter, no new Cannabis Premise shall be established, developed, or operated within 600 feet of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued, except for Transport activities, which must follow established commercial trucking routes. All distances shall be measured in a straight line, without regard to \ V intervening structures, from the nearest point of the building or structure in which c� the Cannabis Premise is, or will be, located to the nearest property line of those ( uses describe in this Subsection. The restrictions set forth in this Subsection shall (� 0' not apply to any Cannabis Premise which operates within 600 feet of any school providing instruction in kindergarten or any grades 1 through 12, day care center, ,� or youth center if such Cannabis Premise existed prior to the establishment of the applicable school, day care center or youth center that is located within 600 feet of such Cannabis Premise. [Drafting Note: This language matches the requirements set forth under Proposition 64 and MCRSA.] (2) Co-Location. All Commercial Cannabis Activity shall fully comply with all mandates set forth in State Law. To the extent not prohibited under State Law, a DRAFT 5-16-17 Ordinance No. [ORD NO] Page 8 City Permittee may be located within the same unit of the same Cannabis Premises or building, facility or real property parcel as another City Permittee. (3) Conditional Use Permits. a) Prior to commencing operations, all City Permittees shall obtain a CUP from the City for all parcels of real property(Or portion thereof) upon which the City Permittee has a Cannabis Premises. b) All Cannabis Premises shall be operated in accordance with the conditions of approval associated with the applicable CUP for the specified parcel of real property(or sub-portion thereof)upon which the Cannabis Premises is located. c) Prior to the issuance of a CUP on a permanent basis, the City Manager may issue a temporary use permit to enable a City Permittee to commence operations. d) Except as specified in Section XX.13, Commercial Cannabis Activities shall not exceed the square footage authorized pursuant to the applicable CUP. e) Unless otherwise approved by the City Manager, all Cannabis Premises shall be located in the Permit Zone applicable to such type of City Permit. (h) Subject to the further requirements of this Chapter, and in accordance with the MCRSA and Business and Professions Code sections 19300.7 and 19328, at a minimum the following State Medical License classification types will be allowed within the City: 1 , 2A, 2B, 3A, 3B, 4, 6, 7, 8, 10, 10A, 11, and 12. ommercial Cannabis Activity is allowed only within Fully Enclosed and Secure ures that are inaccessible to minors. m any public right-of-way, there shall be no visible evidence of the consumption of Cannabis Products. Commercial Cannabis Activity shall not adversely affect the ealth or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes. (k) Except as specified in Section XX.13, there is no set restriction on the hours of operation of Commercial Cannabis Activities at Cannabis Premises; however, restricted hours of operation may be established as a condition of approval of a City Permit or the auessss a CUP issued by the City. Cannabis and Cannabis Products shall be kept in a secured manner during all and nonbusiness hours. (m) All Commercial Cannabis Activities shall operate within a Cannabis Premises that is compliant with all applicable State Laws and local laws. (n) City Permittees must pay all applicable taxes pursuant to all federal, State, and local laws. o y Permittees shall provide sufficient odor absorbing ventilation and exhaust ms so that odors outside the applicable Cannabis Premises are not a nuisance on any DRAFT 5-16-17 Ordinance No. [ORD NO] Page 9 adjacent property of public right-of-way. Any violation of this Section shall be remedied within thirty(30) days of the City Permittee receiving notice of such violation. p) ity Permittees shall utilize product and inventory tracking software and accounting e that is in-line with reasonable business practices within the industry. q) cept as specified in Section XX.13, on-site smoking, ingestion, or consumption of C abis, Cannabis Products or alcohol shall be prohibited on Cannabis Premises. ept to the extent otherwise permitted pursuant to Section XX.13, the entrance of the Cannabis Premises shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming Cannabis, Cannabis Products or alcohol on such Cannabis Premises is prohibited. (r) Signage for all Cannabis Premises shall be in compliance with the City's sign code. (s) Alcoholic beverages and tobacco shall not be sold, stored, distributed, or consumed on the Cannabis Premises. City Permittees shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages or tobacco with respect to the Cannabis Premises. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used he Cannabis Premises. sician Services shall not be provided at any Cannabis Premises. e Cannabis Premises shall fully comply with all applicable rules, regulations, and s including, but not limited to, zoning and building City Codes, the City's business icense ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, AUMA and MCRSA. (v) Each City Permittee shall provide the City Manager, or the City Manager's designee, with the name, phone number, facsimile number, and email address of an on-site representative of such City Permittee to whom the City and the public can provide notice if there are any operational problems associated with such City Permittee's Cannabis Premises. Each City Permittee shall make reasonable and good faith efforts to encourage residents and the public to call this representative to resolve any operational problems any calls or complaints are made to the City or law enforcement. w Cannabis Premises shall have a security plan that satisfies the following q ents: Security cameras shall be installed and maintained in good condition at all times. The areas to be covered by the security cameras include, but are not limited to sale, Cultivation, Manufacturing, processing, Transportation, and Distribution areas, all doors and windows, and any other areas as reasonably determined by the City Manager or the City Manager's designee. Requirements for the camera system include: a) The cameras shall be in use 24 hours per day, seven days per week. b) The applicable City Permittee shall maintain at least 120 concurrent hours of digitally recorded documentation DRAFT 5-16-17 Ordinance No. [ORD NO] Page 10 c) Any disruption in security camera images shall be cured expeditiously in good faith. d) With respect to enclosed and secure spaces utilized solely for Cultivation and to avoid damaging the light cycles of Cannabis crops, cameras that do not utilize infrared or other supplemental light may be utilized provided that such Cultivation space is fully locked and secured with a keypad, keycard, smartlock or other system which records the time and identity of those accessing such Oat vation space. abis Premises shall be secured with an alarm system that is operated and tored by an independent third party security company. nce to the Cannabis Premises, and all storage areas therein, shall be locked times, and under the control of the Cannabis Premise's staff. (4) The entrances and all window areas shall be illuminated during evening hours. The Cannabis Premises shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting approvals and permits as needed. 11 windows on the Cannabis Premises shall be appropriately secured and all Cannabis securely stored. (6) Recordings made by the security cameras shall be made available to the City Manager, the City Manager's designee, or law enforcement upon verbal request— no search warrant or subpoena shall be needed to view the recorded materials. x ity code enforcement or law enforcement officers are authorized to conduct r so nable inspections of the Cannabis Premises of City Permittees. Except to the extent terwise specified by this chapter, inspections are subject to the rules and restrictions ait ing inspection of businesses pursuant to the City code. y code enforcement or law enforcement officers shall have the right to enter the bis Premises at any time, unannounced, for the purpose of making reasonable inspections to observe and enforce compliance with this Chapter and all City laws and State Law. To ensure security, such right shall be subject to the applicable party being able to present the applicable Cannabis Permittee a valid identification showing that they are the appropriately designated officers with jurisdiction in the City. (z) Pursuant to this Section XX.05, the City, City Manager, law enforcement and other agents and employees of the City (collectively, the "City Parties") shall have access to Cannabis Premises, video footage, business records, data, inventory levels and information relating to customers, vendors, products, plans and agreements (collectively, "Confidential Information"). To the extent Confidential Information is viewed or possessed by any City Parties, the City Parties shall, to the maximum extent possible, keep such Confidential Information confidential, not disclose the Confidential Information to any third parties, and shall only use the Confidential Information for purposes specified in this Ordinance or other laws and regulations of the City related to the City Permittees from whom such Confidential Information has been received. Notwithstanding the foregoing, the City may disclose Confidential Information: (i) as DRAFT 5-16-17 Ordinance No. [ORD NO] Page 11 may be required by the California Public Records Act or pursuant to a valid subpoena or court order, provided, however, that the City shall first notify the applicable City Permittee and provide the City Permittee with a reasonable opportunity to obtain a protective order before disclosing the Confidential Information, and (ii) in connection with any City enforcement proceeding relating to compliance with the City's Municipal Code and this Section, but only to the extent the Confidential Information is relevant to the proceeding. XX.06 Application requirements (a) All applicants wishing to obtain a Cannabis Permit from the City shall file an application with the City upon a form provided by the City and shall pay a permit application fee as established by the City. The fee may vary depending on the type of City Permit. An application for a City Permit shall include at least the following information: (1) The address of the applicant's headquarters. (2) The size of the proposed Cannabis Premises. (3) The address of the location for which the City Permit is sought. (4) A site plan and floor plan for the proposed Cannabis Premises denoting the use of all areas on the Cannabis Premises, including storage, areas, lighting, signage, etcetera. (5) A proposed security plan in compliance with the standards in this Chapter. he names, addresses, and relevant criminal histories of those with an ownership interest of twenty percent (25%) or more and any Person who will be a facility manager or otherwise responsible for the Commercial Cannabis Activity at the Cannabis Premises (collectively, the "Applicant's Agents"). Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions. (7) The name and address of the owner and lessor of the real property upon which the Cannabis Premises is proposed to be located. In the event the applicant is not the legal owner of the property, the application must be accompanied with a signed acknowledgement from the owner of the property that Commercial Cannabis Activity will occur on the property. The actions of a lessor who, in good faith, allows his or her property to be used by a Cannabis Permittee, its employees, and its agents, as allowed pursuant to a state license and this chapter, are not unlawful shall not be an offense subject to arrest, prosecution, or other sanction under this chapter, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under this Chapter. (8) Authorization for the City Manager or the City Manager's designee to seek verification of the information contained within the application. (9) Evidence that the Cannabis Premises will be located in a Cannabis Premises that is compliant with all applicable State Laws and City laws. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 12 (10) A statement in writing by the applicant that the applicant certifies under penalty of perjury that all the information contained in the application is true and correct. (11) Any such additional and further information as is deemed necessary by the City Manager or the City Manager's designee to administer this Chapter. (b) The City Manager or the City Manager's designee shall conduct a background check of any applicant seeking a City Permit, including the Applicant's Agents, and shall prepare a report on the acceptability of the applicant and the Applicant's Agents and the suitability of the proposed location of the Cannabis Premises. e City Manager or the City Manager's designee shall rank all qualified applications order of those that best satisfy the requirements of this Chapter and provide the highest level of service and opportunities for residents of the City based on the requirements of this Section and, but not limited to, the following criteria (the "Merit List"): (1) The operational plan for the Cannabis Premises. (2) The security plan for the Cannabis Premises. (3) The experience of the operators of the Cannabis Premises with respect to Cannabis businesses. (4) The adequacy of capitalization for the City Permittee and its operations. 5) The employment of City residents and other public benefits to the City. .07 Permit Conditions 11 ��City Permit application may be denied and not awarded by the City if: (1) The applicant or the Applicant's Agents made one or more false or misleading statements or omissions in the application or during the application process. (2) The proposed Cannabis Premises or Commercial Cannabis Activity at the Cannabis Premises is not allowed by State Law or City law. 16 6� (3) The applicant is not a legal representative of the proposed City Permittee. (4) The applicant or the Applicant's Agents have been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, distribution, transportation, or any such similar activity related to controlled substances, with the exception of Cannabis related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. (5) The applicant or the Applicant's Agents have engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. (6) The applicant has not been or is not in good standing with the city related to other or previous business activities operated in the city. (7) The applicant has not satisfied all requirement of this Chapter. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 13 (b) A Cannabis Permit shall be awarded by the City to applicants in order of the Merit List as established by the City Manager or the City Manager's designee. The number of City Permits shall be limited to those that may be reasonably accommodated within the appropriate city Permit Zone as determined by the City Manager or the City Manager's designee provided that at no time shall there be less than: (1) One(1) Retail Permittee per 7,500 residents in the City. (2) One(1) Cultivation Permittee per 20,000 residents in the City. (3) One(1) Manufacturing Permittee per 20,000 residents in the City. (4) Sufficient Distribution Permits to enable each Manufacturing Permittee or Processing Permittee to also distribute the Cannabis Products such Cannabis Permittee produces. (c) Before a Cannabis Permit can be issued to an applicant, a Cannabis Permit fee must be paid to offset all related costs to the City, and the proposed Cannabis Premises must pass all applicable inspections. (d) Each City Permit is subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the Cannabis Premises is located. (e) Each City Permit is subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the applicable Commercial Cannabis Activities and to protect the public. (0 Each City Permittee shall execute an agreement with the City to fully reimburse the City for all fiscal impacts, costs, expenses, fees, and attorneys' fees incurred by the City ted to the City Permit and the related Commercial Cannabis Activity of such City 'ttee. (g) ch City Permittee shall: Carry liability insurance in an amount commensurate with similarly situated businesses, and name the City as an additional insured on all such insurance policies. (2) Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the City Permit, the City Permittee's Commercial Cannabis Activities, and any action taken by the City Permittee pursuant to this Chapter. (3) Defend the City, at the City Permittee's sole expense, in any action against the City or its agents, officers, or employees associated with the City Permit, the City Permittee's Commercial Cannabis Activities, or any action taken by the City Permittee pursuant to this Chapter. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the City Permittee of its indemnification and reimbursement obligations. (4) Reimburse the City for all costs, expenses, fees, and attorney fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the Cannabis Permit, the City Permittee's Commercial Cannabis Activity, or any action taken by the City Permittee pursuant to this Chapter. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 14 (h) A City Permittee shall keep the City and law enforcement updated with the names, addresses, and relevant criminal histories of the Applicant's Agents. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions. (i) In order for a City Permittee to transfer its City Permit to any Person, such City Permittee must submit a transfer application to the City Manager or City Manager's designee. The City Manager or the City Manager's designee shall create a transfer application and reasonable transfer application process that City Permittees and the City must follow for City Permit transfer requests. Each transfer request of a City Permit and the related transfer application is subject to the prior approval of the City Manager or the City Manager's designee. 0) A City Permit shall expire and be null and void 12 months after issuance to the City Permittee unless properly renewed. Upon payment of the applicable City Permit fees, and passing the requisite inspections, a City Permittee that has maintained compliance with all City, State, and other applicable Cannabis and business related laws shall be entitled to automatically renew its City Permit subject to all prevailing laws at the time of renewal. (k) To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any Commercial Cannabis Activities, or for the other activities of any City Permittee or for any other activities taking place at Cannabis Premises. XX.08 Enforcement (a) Any Commercial Cannabis Activity within the City in violation of this Chapter is hereby declared to be unlawful and a public nuisance. (b) Any Person who willfully or knowingly (i) engages in a violation of this Chapter or (ii) owns, possesses, controls, or has charge of any parcel of real property in the City upon which a violation of this Chapter is maintained and who has actual knowledge of such violation (or would have actual knowledge of such violation after a reasonable inquiry), shall be subject to the penalties and remedies provided by this Chapter. (c) Any violation of this Chapter shall constitute a separate offense for each and every day the violation occurs or persists. (d) Any Person in violation of any provision of this Chapter or who causes another Person to be in violation of this Chapter shall have committed a misdemeanor. In addition which shall be punishable by a fine of up to one thousand dollars ($1,000) for each violation and for each day the applicable violation continues to persist. (e) Any person in violation of any provision of this Chapter shall be punishable by an administrative fine of up to a$1,000 per offense. (f) Any material violation of this Chapter or any other relevant City law or State Law by a City Permittee, or a City Permittee's agent, is grounds for revoking the relevant City Permit. In addition, the City Manager or the City Manager's designee may revoke a City Permit if any of the following occur: DRAFT 5-16-17 Ordinance No. [ORD NO] Page 15 (1) The City Manager or the City Manager's designee determines that the City Permittee has failed to comply with this Chapter, any condition of approval, or any agreement or covenant as required pursuant to this Chapter. (2) The City Permittee's Commercial Cannabis Activities cease for more than ninety (90) calendar days. (3) Ownership of the City Permittee is changed or transferred to a third party, without approval from the City Manager or the City Manager's designee. (4) The Cannabis Premises fails to maintain 120 hours of security recordings. (5) The City Permittee fails to provide remote access to the security cameras to the City Manager, the City Manager's designee, or the Chief of Police, or fails to allow inspection of the security recordings, the activity logs, or of the premise by authorized City officials. (g) Any decision regarding the revocation of a City Permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager's designee (the "Bearing Officer"). Said appeal shall be made by a notice of appeal from the Person appealing within thirty (30) days from the date of the decision to revoke the City Permit. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the City Permit was improperly revoked. The Hearing Officer's decision shall be final and binding upon the City and the appellant City Permittee. (h) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City. XX.09 State Medical License Requirement (a) Medical Permittees must obtain a State Medical License within one (1) year of the date on which the Bureau of Medical Cannabis Regulation posts a notice on its website or otherwise publicly announces that state licensing authorities have commenced issuing State Medical Licenses (the"State Medical License Deadline"). (b) A Medical Permittee may not conduct the applicable Commercial Cannabis Activity at its Cannabis Premises following the State Medical License Deadline in the event that such Medical Permittee fails to obtain the applicable State Medical License on or prior to the State Medical License Deadline. (c) Each Medical Permittee must provide proof of receipt of the applicable State Medical License by such Medical Permittee to the City Manager or the City Manager's designee. XX.10 State Adult Use License Requirement (a) There shall be no prohibitions or restrictions on a Medical Permittee obtaining and holding the same classification type of City Permit for Adult Use Cannabis as such Medical Permittee holds for medical Cannabis. There shall be no prohibitions or restrictions on an Adult Use Permittee obtaining and holding the same classification type of City Permit for medical Cannabis as such Adult Use Permittee holds for Adult Use Cannabis. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 16 (b) The applications of Medical Permittees, which have operated in compliance with and are in good standing with city codes, for City Permits for Commercial Cannabis Activities for Adult Use Cannabis shall be prioritized over all other Persons' applications for the same City Permit classification type. (c) Subject to the further requirements of this Chapter, and in accordance with Section 26050 of the Business and Professions Code, at a minimum, the following State Adult Use License classification types will be allowed within the City: 1 A, 1 B, 2A, 2B, 3A, 3B, 4, 5A, 5B, 6, 7, 8, 10, 11, and 12. (d) To the extent not prohibited under State Law, a City Permittee may engage in Commercial Cannabis Activity with Cannabis Permittees holding a State Medical License (or medical Cannabis City Permit) or State Adult Use License (or Adult Use Cannabis City Permit). XX.11 Cannabis Commercial Cultivation (a) Purpose. The purpose and intent of this Section is to permit and regulate the Commercial Cannabis Activity of Cultivation in order to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MCRSA and AUMA. (b) Scope; Medical and Adult Use Cannabis. This Section permits and regulates the Commercial Cannabis Activity of Cultivation of medical Cannabis pursuant to State Law, including MCRSA, and the Commercial Cannabis Activity of Cultivation of Adult Use Cannabis pursuant to State Law, including AUMA. Subject to the terms of this Chapter, Cultivation Permits may be issued by the City for the Cultivation of medical Cannabis pursuant to and in accordance with State Law, including MCRSA. Subject to the terms of this Chapter, Cultivation Permits may be issued by the City for the Cultivation of Adult Use Cannabis pursuant to and in accordance with State Law, including AUMA. (c) [Outdoors Cultivation is prohibited within the City.] [Drafting Note: Remove if the City desires to allow outdoor cultivation in a securely fenced site.] (d) Indoor Cultivation is a conditionally permitted use only on properties within the applicable Permit Zone. (e) Indoor Cultivation may include growing Cannabis plants, harvesting Cannabis plants, and drying Cannabis flowers, but shall not include the Manufacturing or of Cannabis Products. (f) In addition to the security requirements of Section XX.05, entrance to the Cultivation area, and all storage areas, of the applicable Cannabis Premises shall be locked at all times, and under the control of the staff of such Cannabis Premises. (g) The City may authorize pursuant to a CUP, on an interim basis or on a permanent basis, the Cultivation of Cannabis Products in a Modular Building that meets or substantially meets the requirements of this Chapter. XX.12 Cannabis Manufacturing (a) Purpose. The purpose and intent of this Section is to permit and regulate the Manufacturing of Cannabis Products to promote the health, safety, morals, and general DRAFT 5-16-17 Ordinance No. [ORD NO] Page 17 welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MCRSA and AUMA. (b) Scope; Medical and Adult Use Cannabis. This Section permits and regulates the Commercial Cannabis Activity of Manufacturing of medical Cannabis Products pursuant to State Law, including MCRSA, and the Commercial Cannabis Activity of Manufacturing of Adult Use Cannabis Products pursuant to State Law, including AUMA. Subject to the terms of this Chapter, Manufacturing Permits may be issued by the City for the Manufacturing of medical Cannabis Products pursuant to and in accordance with State Law, including MCRSA. Subject to the terms of this Chapter, Manufacturing Permits may be issued by the City for the Manufacturing of Adult Use Cannabis Products pursuant to and in accordance with State Law, including AUMA. (c) The Manufacturing of Cannabis Products is a conditionally permitted use only on properties within the applicable Permit Zone. (d) A Manufacturing Permittee must employ at least one (1) full time quality control personnel. (e) The Manufacturing Permittee must establish standard operating procedures and batch records that comply with current good manufacturing practices and applicable State Law, including MCRSA and AUMA. (0 All finished Cannabis Products produced by a Manufacturing Permittee must be labeled in compliance with applicable State Law, including MCRSA and AUMA. (g) All finished Cannabis Products produced by a Manufacturing Permittee must be packaged in child resistant containers prior to leaving the Cannabis Premises for such Manufacturing Permittee in accordance with applicable State Law, including MCRSA and AUMA. (h) Manufacturing Permittees may conduct Manufacturing of Cannabis Products using any type of solvents, including Volatile Solvents, or Manufacturing processes if such Manufacturing complies with the requirements of this Chapter and State or local law, including but not limited to Health and Safety Code Section 11362.775 (or any successive State Law) all applicable fire and building codes in the City and any other laws of the City designed to ensure the safety of such operation. (i) Manufacturing Permittees using Volatile Solvents for Manufacturing Cannabis Products must operate in a manner to reduce the risk of explosion or danger to public health, including through the use of a close-loop or solvent dispersion system consistent with the requirements of Health and Safety Code Section 11362.775 (or any successive State Law). 6) The City may authorize pursuant to a CUP or temporary CUP, on an interim basis or on a permanent basis, the Manufacturing of Cannabis Products in a Modular Building that meets or substantially meets the requirements of this Chapter. XX.13 Cannabis Retailers (a) Purpose. The purpose and intent of this Section is to regulate the retail sale and Delivery of Cannabis and Cannabis Products in order to promote the health, safety, and DRAFT 5-16-17 Ordinance No. [ORD NO] Page 18 general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MCRSA and AUMA. (b) Scope; Medical and Adult Use Cannabis. This Section permits and regulates the Commercial Cannabis Activity of retail selling and Delivering of medical Cannabis and Cannabis Products pursuant to State Law, including MCRSA, and the Commercial Cannabis Activity of retail selling and Delivering of Adult Use Cannabis and Cannabis Products pursuant to State Law, including AUMA. Subject to the terms of this Chapter, Retail Permits may be issued by the City for retail selling and Delivering of medical Cannabis and Cannabis Products pursuant to and in accordance with State Law, including MCRSA. Subject to the terms of this Chapter, Retail Permits may be issued by the City for the retail selling and Delivering of Adult Use Cannabis and Cannabis Products pursuant to and in accordance with State Law, including AUMA. (c) Retail selling and Delivering of Cannabis and Cannabis Products is a conditionally permitted use only on properties within the applicable Permit Zone. (d) The Commercial Cannabis Activity of retail selling and Delivering of Cannabis and Cannabis Products may only include the selling and Delivering of Cannabis and Cannabis Products by a Retail Permittee to a customer, patient or primary caregiver. (e) Retailer Stores shall only be operated between the hours of 6:00 a.m. and 9:00 p.m. or as otherwise established as a condition of approval of the applicable Retailer Permit or the applicable CUP for such Retail Permittee. Delivery shall be permitted to continue until 12:00 a.m. midnight. (f) On-site smoking, ingestion, or consumption of Cannabis, Cannabis Products or alcohol shall be prohibited on the Cannabis Premises of all Dispensaries except for Cannabis and Cannabis Products used by customers or qualified patients in well ventilated private lounges that are partitioned off from access to all other areas of the Retail Establishment, are designed to prevent the flow of smoke to any other area of the Retail Establishment, and are otherwise operated in compliance with applicable State Law. The entrance of the Cannabis Premises for the Retail Establishment shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming Cannabis, Cannabis Products or alcohol on the premises is prohibited except in designated lounges that comply with the mandates of this Subsection. (g) In addition to the requirements of Section XX.05, Retail Permittees shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing Cannabis and Cannabis Products and theft of Cannabis and Cannabis Products from the Retail Establishment. (h) All Cannabis and Cannabis Products shall be stored in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, or loss. (i) Individuals shall not be allowed to remain on the Cannabis Premises comprising of the Retail Establishment unless they are engaging in activity expressly related to the operations of the Retail Establishment or are a customer. 6) A Retail Permittee shall notify the City Manager or the City Manager's designee within 24 hours of discovering any of the following: DRAFT 5-16-17 Ordinance No. [ORD NO] Page 19 (1) Significant discrepancies identified during inventory. The level of significance shall be determined by the City Manager or the City Manager's designee. (2) Diversion, theft, loss, or any criminal activity involving the Retail Establishment or any agent or employee of the Retail Establishment. (3) The loss or unauthorized alteration of records related to Cannabis, Cannabis Products, registered qualifying patients, primary caregivers, or Retail Establishment agents or employees. (4) Any other material breach of security. (k) The retail sale and Delivery of Cannabis and Cannabis Products by Retail Establishments shall comply with all State and local Law, including all laws requiring presentment of government-issued identification card, physician's recommendation or medical Cannabis identification card at the time of initial purchase. (1) With respect to medical Cannabis, Physician's recommendations shall be verified by a Retail Permittee prior to selling or Delivering any medical Cannabis to a qualified patient or primary caregiver, and at least every six months thereafter. (m) A Retail Establishment may not employ or enter into any agreements with any physicians who recommend medical Cannabis. (n) A Retail Permittee shall inspect all Cannabis and Cannabis Products received for quality assurance prior to selling or Delivering to any Person. (o) Each Retail Establishment shall sell and Deliver Cannabis and Cannabis Products only after such Cannabis and Cannabis Products have been inspected and quality tested in accordance with applicable State Law, including MCRSA and AUMA. (p) Each Retail Establishment shall do regular monthly inventories, and shall record the total quantity of Cannabis and Cannabis on the Cannabis Premises. These records shall be maintained for three years from the date created and shall be open to inspection by the City Manager,the City Manager's Designee, and law enforcement. (q) A Retail Permittee shall register with the City each location where Cannabis or Cannabis Products are stored for purposes of selling or Delivering by such Retail Permittee within the City. (r) A Retail Establishment shall maintain customer and patient and other business records in a secure location (including electronically or cloud-based) that is compliant with, as applicable, HIPAA and other federal and state privacy laws. (s) During the Delivery of Cannabis or Cannabis Products, each vehicle driver shall carry a copy of the Retail Permit, a copy of the Delivery request, a form of government-issued identification, and all other information required by State and local Law. The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager's designee. (t) Prior to sale at a Retail Establishment, Cannabis and Cannabis Products shall be labeled and placed in a tamper-evident package. Labels and packages of Cannabis and Cannabis Products shall, at minimum, meet the requirements specified under Business and Professions Code Section 19347 and other applicable State Law. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 20 (u)A Retail Permittee may opt to only provide Delivery service from the applicable Retail Establishment and not offer the sale of Cannabis or Cannabis Products on the premises of the Retail Establishment. (v) All Cannabis Delivery vehicles shall: (1) Be equipped with, and utilize, a vehicle alarm system. (2) Have and utilize a direct communication system with the related Retail Establishment. (3) Keep all Cannabis and Cannabis Products in a secure and locked container. (4) Have an internal partition between the driver and all passengers from the Cannabis and Cannabis Products storage containers that prevents access by the driver and passengers to all cannabis products from inside the vehicle. (5) Not carry more Cannabis and Cannabis Products than allowed by State and local Law and required to fulfill all immediate Delivery requests. XX.14 Cannabis Distribution (a) Purpose. The purpose and intent of this Section is to permit and regulate the Distribution of Cannabis and Cannabis Products between Cannabis Permittees in order to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MCRSA and AUMA. (b) Scope; Medical and Adult Use Cannabis. This Section permits and regulates the Commercial Cannabis Activity of Distribution of medical Cannabis and Cannabis Products pursuant to State Law, including MCRSA, and the Commercial Cannabis Activity of Distribution of Adult Use Cannabis and Cannabis Products pursuant to State Law, including AUMA. Subject to the terms of this Chapter, Distribution Permits may be issued by the City for the Distribution of medical Cannabis and Cannabis Products pursuant to and in accordance with State Law, including AUMA. Subject to the terms of this Chapter, Distribution Permits may be issued by the City for the Distribution of Adult Use Cannabis and Cannabis Products pursuant to and in accordance with State Law, including AUMA. (c) Distribution of Cannabis and Cannabis Products is a conditionally permitted use only on properties within the applicable Permit Zone. (d) Distribution activities includes the receiving and releasing of Cannabis and Cannabis Products for inspection, Testing, and quality assurance, as required under applicable State Law and such other activities as are permitted pursuant to State Law as amended. (e) Except for non-Distribution Activities, such as Transportation, Distribution activities at the applicable Cannabis Premises shall not exceed the square footage authorized for such Distribution Activities pursuant to the applicable CUP. (0 A Distribution Permittee shall only Distribute or Transport Cannabis and Cannabis Products between Cannabis Permittees or to facilities or portions of facilities wholly controlled by such Distribution Permittee to the extent permitted by State Law. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 21 (g) A Distribution Permittee shall inspect all Cannabis and Cannabis Products received by it for quality assurance prior to Distributing to any Cannabis Permittee, as required under applicable State Law. (h) In addition to the application requirements in Section XX.06, a Distribution Permittee shall register with the City each location within the City where Cannabis and Cannabis Products are stored for purposes of Distribution activities within the City. (i) A Distribution Permittee shall Distribute Cannabis and Cannabis Products to Cannabis Permittees only after such Cannabis and Cannabis Products have been inspected and quality tested in accordance with applicable State Law, including MCRSA and AUMA. 0) A Distribution Permittee may also hold any other Permit type to the extent permitted by State Law. To the extent permitted by State law, a Distribution Permittee that also holds another Permit type may self-distribute its Cannabis Products. XX.15 Cannabis Transportation (a) Purpose. The purpose and intent of this Section is to permit and regulate the Transportation of Cannabis and Cannabis Products between Cannabis Permittees in order to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MCRSA and AUMA. (b) Scope; Medical and Adult Use Cannabis. This Section permits and regulates the Commercial Cannabis Activity of Transportation of medical Cannabis and Cannabis Products pursuant to State Law, including MCRSA, and the Commercial Cannabis Activity of Transportation of Adult Use Cannabis and Cannabis Products pursuant to State Law, including AUMA. Subject to the terms of this Chapter, Transportation Permits may be issued by the City for the Transportation of medical Cannabis and Cannabis Products pursuant to and in accordance with State Law, including MCRSA. Subject to the terms of this Chapter, Transportation Permits may be issued by the City for the Transportation of Adult Use Cannabis and Cannabis Products pursuant to and in accordance with State Law, including AUMA. (c) Transportation of Cannabis and Cannabis Products within the City is a conditionally permitted use only on properties within the applicable Permit Zone. (d) Transportation activities includes the Transportation of Cannabis and Cannabis Products between Cannabis Permittees. (e) A Transportation Permittee shall only Transport Cannabis and Cannabis Products between Cannabis Permittees or to facilities or portions of facilities wholly controlled by such Distribution Permittee to the extent permitted by State Law. (f) In addition to the application requirements in Section XX.06, a Transportation Permittee shall register with the City each location within the City where Cannabis and Cannabis Products are stored for purposes of Transportation within the City. XX.16 Cannabis Testing (a) Purpose. The purpose and intent of this Section is to permit and regulate the Testing of Cannabis and Cannabis Products prior to the retail sale of such products to the public DRAFT 5-16-17 Ordinance No. [ORD NO] Page 22 in order to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City intends to be on the forefront of medical Cannabis research and Testing. The City is authorized to regulate this activity pursuant to the MCRSA and AUMA. (b) Scope; Medical and Adult Use Cannabis. This Section permits and regulates the Commercial Cannabis Activity of Testing of medical Cannabis and Cannabis Products pursuant to State Law, including MCRSA, and the Commercial Cannabis Activity of Testing of Adult Use Cannabis and Cannabis Products pursuant to State Law, including AUMA. Subject to the terms of this Chapter, Testing Permits may be issued by the City for the Testing of medical Cannabis and Cannabis Products pursuant to and in accordance with State Law, including MCRSA. Subject to the terms of this Chapter, Testing Permits may be issued by the City for the Testing of Adult Use Cannabis and Cannabis Products pursuant to and in accordance with State Law, including AUMA. (c) Testing of Cannabis and Cannabis Products is a conditionally permitted use only on properties within the applicable Permit Zone. (d) Each Cannabis Premises for Testing must employ at least one (1) full time quality control personnel. (e) Testing Permittees must operate, and all Cannabis and Cannabis Products must be properly tested by Testing Permittees, in accordance with applicable State Law, including but not limited to, Business and Professions Code Sections 19342, 19343, 19344, 19345 and/or Chapter 10, commencing with Section 26100, of Division 10 of the Business and Professions Code(or any successive provisions). (fl All Testing devices used by a Testing Permittee must be UL listed, or otherwise approved for the intended use by the City's Building Official, the Fire Department or other person designated by the City Manager. (g) Each Testing Permittee must notify the State Department of Public Health and the City Manager, or the City Manager's designee, within one business day after the receipt of notice of any kind that its accreditation has been denied, suspended, or revoked. XX.17 Taxation. [Taxation Alternative 1 —Gross Tax Option] (a) Pursuant to Measure [ 1, approved by the voters of the City on [ 1, the City Council is authorized to impose excise taxes, with no termination date, on each Commercial Marijuana Activity Business Licensed or Operating Within the City in an amount of not more than [four(4) percent] of the gross receipts earned within the City. (b) The excise tax shall initially be set at the following rates: (1) two (2)percent on Gross Receipts for Manufacturing Permittees. (2) two (2)percent on Gross Receipts for Cultivation Permittees. (3) two (2)percent on Gross Receipts for Retail Permittees. (c) To the extent a City Permittee holds more than one type of City Permit for Commercial Cannabis Activities which are subject to excise taxes pursuant to this DRAFT 5-16-17 Ordinance No. [ORD NO] Page 23 Section, the excise tax applicable to a City Permit type shall only apply to that portion of such City Permittee's Commercial Cannabis Activity which is authorized by the applicable City Permit type. So, for example, if a City Permittee holds a Manufacturing Permit and a Cultivation Permit, the excise tax applicable to Cultivation Permittees shall only apply to the portion of such City Permittee's Commercial Cannabis Activities which are deemed Cultivation at its applicable Cannabis Premises, and the excise tax applicable to Manufacturing Permittees shall only apply to the portion of such City Permittee's Commercial Cannabis Activities which are deemed Manufacturing at its applicable Cannabis Premises. (d) The excise taxes due pursuant to this Section shall be due and payable on a calendar quarterly basis within thirty (30) days following the end of the applicable calendar quarter. Failure to pay excise taxes in a timely manner may result in the suspension of the applicable City Permit until such time as the excise taxes have been paid. (e) In connection with the payment of excise taxes pursuant to this Section, each City Permittee shall provide sufficient books and records to reasonably justify the calculation of Gross Receipts to which the excise tax is applicable. (f) The tax may be lowered or increased to not more than four (4) percent of Gross Receipts by a majority vote of the City Council. [Taxation Alternative 2—Flat Fee Option] (a) Pursuant to Measure [ 1, approved by the voters of the City on [_�, the City Council is authorized to impose a flat operating fee on each Cannabis Permittee, with no termination date, on each Commercial Marijuana Activity Business Licensed or Operating Within the City in an amount of not more than twenty dollars ($20.00) per Square Foot. (b) For purposed of this Section XX.17, "Square Foot" or "Square Footage" means the area within each Cannabis Premises used for Commercial Cannabis Activity, measured in square feet, deducting therefrom driveways, sidewalks, landscaping, vacant unused space, areas used exclusively for office space, employee break rooms, restrooms, and storage space unrelated to the Commercial Cannabis Activity(such as a janitorial closet). (c) Every person engaged in Commercial Cannabis Activity in the City shall pay an annual business operations tax as follows: fifteen dollars ($15.00) per Square Foot for the first three thousand (3,000) square feet, and seven ($7.00) per Square Foot for each additional square foot thereafter. (d) If more than one Cannabis Permittee operate on the Cannabis Premises, each Cannabis Permittee shall be responsible for paying the pro-rata portion of the tax based on the Square Footage such Cannabis Permittee utilizes. (e) The fees due pursuant to this Section shall be due and payable on a calendar quarterly basis within thirty(30) days following the end of the applicable calendar quarter. Failure to pay excise taxes in a timely manner may result in the suspension of the applicable City Permit until such time as the excise taxes have been paid. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 24 (f) In connection with the payment of the fees pursuant to this Section, each City Permittee shall provide sufficient books and records to reasonably justify the calculation of Gross Receipts to which the excise tax is applicable. (g) The tax may be lowered or increased to not more than twenty-five dollars ($20.00) per Square Foot by a majority vote of the City Council. Taxation Alternative 3—Hybrid Flat Fee for Cultivation/Excise Tax] (a) Pursuant to Measure [�, approved by the voters of the City on [�, the City Council is authorized to impose excise taxes, with no termination date, on each Commercial Marijuana Activity Business Licensed or Operating Within the City in an amount of not more than [two (2) percent] of the gross receipts earned within the City. (b) For proposes of this Section XX.17, the following terms have the following meanings: (1) "Square Foot" or "Square Footage" means the amount of Canopy area for Cultivation authorized pursuant to a Cultivation Permit and CUP issued to a Cultivation Permittee. If a Cultivation Permittee can demonstrate to the City Manager or City Manager's designee that the full Canopy authorized pursuant to the Cultivation Permit and CUP is not being utilized, the unutilized Canopy may be deducted from a Cultivation Permittee's Cultivation Tax liability. (2) "Canopy" means all areas where Cultivation occurs, inclusive of all vertical planes. Canopy need not be contained to a single parcel of land in determining the total square footage that will be subject to tax under this Chapter. Canopy does not include space used for the storage of fertilizers, pesticides or other products, quarantine, office space, or any ancillary structures not used for Cultivation. (3) "Cultivation Tax" means the excise tax due pursuant to this chapter for engaging in Cultivation in the City. (c) Every Cultivation Permittee shall pay an annual Cultivation Tax at either of the following rates: (1) $15.00 per square foot of cultivation area. (2) One(1)percent on Gross Receipts. (d) The Cultivation Tax shall not exceed two (2) percent of a Cultivation Permittees Gross Receipts. (e) The excise tax for Commercial Cannabis Activity other than Cultivation shall initially be set at the following rates: (1) one(1)percent on Gross Receipts for Manufacturing Permittees. (2) one(1)percent on Gross Receipts for Retail Permittees. (f) To the extent a City Permittee holds more than one type of City Permit for Commercial Cannabis Activities which are subject to excise taxes or fees pursuant to this DRAFT 5-16-17 Ordinance No. [ORD NO] Page 25 Section, the excise tax applicable to a City Permit type shall only apply to that portion of such City Permittee's Commercial Cannabis Activity which is authorized by the applicable City Permit type. So, for example, if a City Permittee holds a Manufacturing Permit and a Cultivation Permit, the fees applicable to Cultivation Permittees shall only apply to the portion of such City Permittee's Commercial Cannabis Activities which are deemed Cultivation at its applicable Cannabis Premises, and the excise tax applicable to Manufacturing Permittees shall only apply to the portion of such City Permittee's Commercial Cannabis Activities which are deemed Manufacturing at its applicable Cannabis Premises. (g) The excise taxes and fees due pursuant to this Section shall be due and payable on a calendar quarterly basis within thirty (30) days following the end of the applicable calendar quarter. Failure to pay excise taxes or fees in a timely manner may result in the suspension of the applicable City Permit until such time as the excise taxes have been paid. (h) In connection with the payment of excise taxes and fees pursuant to this Section, each City Permittee shall provide sufficient books and records to reasonably justify the calculation of Gross Receipts to which the excise tax or fees are applicable. (i) The tax may be lowered or increased to not more than two (2) percent of Gross Receipts by a majority vote of the City Council. SECTION 3. Recognizing that there is a potential conflict between federal and State law, it is the City Council's intention that this Ordinance shall be deemed to comply with applicable State Law. SECTION 4. The City Council determines that it is in the best interest of the residents of the City to allow Commercial Cannabis Activities in compliance with applicable State Law, including AUMA and MCRSA, to be established and operated as permitted uses within certain areas of the City subject to the regulations and restrictions provided in this Ordinance. It is the City Council's intention that nothing in this Ordinance shall be construed to: 1. Allow a Person to engage in conduct that endangers others or causes a public nuisance. 2. Allow any activity relating to Cannabis that is otherwise not permitted under State law. SECTION 5. The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environmental Quality Act pursuant to Section 15061(b)(3) and 15305 of the Guidelines, in that the Ordinance alone does not have the potential for causing a significant effect on the environment. Further permits and approvals will be required before any activity that will affect the environment will be permitted. SECTION 6. If any section or provision of this Ordinance is for any reason held to be invalid, unconstitutional, illegal, or unenforceable by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, then such section or provision shall be severed and shall be inoperative, and the remainder of this Ordinance shall remain in full force and effect. DRAFT 5-16-17 Ordinance No. [ORD NO] Page 26 SECTION 7. By regulating Commercial Cannabis Activity, the City is only undertaking to preserve the general welfare through implementing the MCRSA and AUMA. The City Council is not assuming, nor is it imposing on its officers and employees, an obligation for which a breach thereof would expose the City to liability in money damages to any Person who claims that such breach proximately caused injury. To the fullest extent permitted by law, the City shall assume no liability whatsoever, and expressly does not waive sovereign immunity, with respect to any provision of this Ordinance or for the activities of any City Permittee. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this Ordinance shall not become a personal liability of any public officer or employee of the City. Nothing in this Ordinance shall be deemed or considered in any respects to constitute authorization to violate any law. DRAFT 5-16-17 CITY OF PALM DESERT ,� DEPARTMENT OF COMMUNITY DEVELOPMENT i5 A PLANNING COMMISSION STAFF REPORT/ � Jfc f) ,�► r 1 REQUEST: CONSIDERATION_TO ADOP A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL T A ZONING ORDINANCE AMENDMENT TO REVISE PALM DESERT MUNICIPAL CODE SECTION 25.56 "SIGNS" AND MODIFY SECTION 25.99.020 "LAND USE DEFINITIONS" TO ALLOW FOR FREEWAY- ORIENTED MONUMENT SIGNS ON COMMERCIALLY ZONED DEVELOPMENTS ABUTTING INTERSTATE 10 SUBMITTED BY: Eric Ceja, Principal Planner APPLICANT: City of Palm Desert CASE NO: ZOA 17-70 DATE: August 1 , 2017 CONTENTS: 1. Draft Planning Commission Resolution No. 2705 2. Exhibit A— Section 25.56 "Signs"(red lines) 3. Exhibit B— Section 25.56 "Signs" (clean version) 4. Exhibit C — Section 25.99.020 "Land Use Definitions" 5. Applicable Commercial Properties Exhibit 6. Applicant's Request Letter 7. Proposed Freeway Sign Exhibit 8. Desert Sun Legal Notice 9. Notice of Exemption Recommendation1� ' Waive further reading and adopt Plannin ommission Resolution No. 2705, recommending that the City Council ado Vloning Ordinance Amendment 17- 070 to an*nd�n ection 25.56 "Signs"to allow for freeway-oriented monument signs for pla -commercial developments greater than 10 acres in size and abutting Interstate 10 and add definitions to Section 25.99.020 "Land Use Definitions"related to monument signs. Mai surc. 7 rf C,3 J f dLC s Staff Report ZOA 17-070: Sign Ordinance Page 2 of 4 August 1, 2017 Background n� ay 2017, t e City Council approved the Monterey Crossing Specific Plan for an 18 mrhercial development bounded by Monterey Avenue to the west, Dinah Shore Drive to the south, and Pacific Railroad to the north. As part of this development, the applicant submitted a Sign Program for review by the Architectural Review Commission (ARC). The Sign Program included i design criteria for building-mounted signs, �Q y monument signs along Dinah Shore Drive, and taller freeway-oriented monument signs shown at a height of forty (40) feet. The Sign Ordinance does not permit these types of larger freeway monument signs, and as such, the ARC did not approve the use of the signs. However, the ARC did provide general comments on the sign design and provided feedback for specific design criteria and studies they'd like to see as part of a review for such a monument sign. The ARC was generally receptive to the proposed design. ^'�, �nApril, 2Q1- , the applicant for Monterey Crossing submitted a Zoning Ordinance n ment requesting that the sign ordinance (P.D.M.0 Section 25.56) be amended to allow for freeway-oriented monument signs. Project Description V)OV The proposed projectivIv allow freeway-oriented monument signs for Planned Commercial (PC) centers greater than 10 acres in size and located along Interstate 10. These monument signs would allow PC centers, established through the City's planning application process, to erect no more than one (1) monument signs along Interstate 10 and subject to the following standards: • Maximum height of forty (40)feet. • Sign setback of 10-feet from property line, setback not to exceed 50 feet from property line. • One sign per Planned Commercial development abutting Interstate 10. • Requires enhanced design, and • Design review and approval from the Architectural Review Commission. In addition to the amendment to the City's Sign Ordinance (Section 25.56) staff proposes to provide definitions in Section 25.99.020 Land Use Definitions for "monument signs" and "freeway-oriented monument signs." The definitions help distinguish between the two sign types and their applicability. Analysis rear'Qra h�A,�intraiaik�i -Standards. Staff has reviewed the applicant's request and has studied ordinances from other jurisdictions that allow for these types of freeway monument signs. Many cities in Southern California with freeway frontage allow for these types of signs subject to specific criteria for design, maximum height, sign area, and content. In the Coachella Valley only three (3) Staff Report ZOA 17-070: Sign Ordinance Page 3 of 4 August 1, 2017 cities permit freeway-oriented signs: Cathedral City, Indio, and Coachella. Of the cities research staff identified the following: Freeway Monument/Pylon Signs Riverside MorenoValley Murrietta Indio Cathedral City Coachella Palm Desert Yes` Commercial Commercial Shopping Commercial Commercial Commercial Planned Complexes and Centers Centers Complexes and Industrial and Industrial Commercial Commercial projects(PCC properties complexes Applicability Mixed Use and 1-1 zones) 110 sq.ft.-500 400 sq.ft. 400 sq.ft. 150 sq.ft./ 175 sq.ft. 400 sq.f.t Sign Area sq.ft. advertiser Sign Height 25'-W 45' 45' 25-100' 50' 25'-55' 40' No.of Signs 2 1 1 1 1' 1 Incorporate Approval as Approved by Approval by river rock and part of a Sign ARC and PC ARC as part of a City logo Program Sign Program Additional Criteria Based on this review, staff is recommending the following standards be applied to freeway- oriented signs: • Require ARC review and approval as part of a Sign Program • Limit maximum height to 40-feet • Limit maximum sign area to 400-square-feet • Limit to only one (1) sign per project • Limit to Planned Commercial development of at least 10 acres in size. Staff believes that one sign for planned commercial centers is reasonable and that the standards proposed for "enhanced architectural quality' and the requirement that signs are approved by the ARC will ensure superior freeway-oriented monument sign design. Staff has mW reviewed existing and future planned commercial developmep'"Iong Interstate 10 and identified that only five (5) properties meet the criteria proposed in the ordinance amendment. Existing commercial properties such as "Monterey Shores" (Costco) and "Desert Country Plaza" (Eos) qualify for a single freeway-oriented monument sign. Future commercial development, including "Monterey Crossings" (applicant), "Key Largo" (west of Costco), and "Millennium" would also be eligible for a single freeway-oriented monument sign. The criteria proposed above ensures that freeway-oriented signs in the City of Palm Desert are limited and do not crZe a freeway corridor cluttered by excessive business identification signs. �� �� r.,, balw�<< out f lwww, Environmental Review .�C C` �ys AeS'a 44 161 exteW r The Director of Community Development has determined that the proposal to amend the Zoning Ordinance to allow for freeway-oriented monument signs qualifies for an exemption under Class 11 — Section 15311 "Accessory Structures" and that the action to amend the Sign Ordinance to allow for on premise signs will not have 1a--negative impact on the 1environment. r2vS Staff Report ZOA 17-070: Sign Ordinance Page 4 of 4 August 1, 2017 Findings of Approval Findings can be made in support of the project, and in accordance with the City s Municipal Code. Findings in support of this project are contained in the Planning Commission Resolution attached to this staff report. Submitted By: ric Ceja, Principal Planner Department Head: Ryan Stendell, Director of Community Development TEXT OF PROPOSED LAWS PROPOSITION 63 CONTINUED exceeding one thousand dollars ($1,000), or by both that of California or the Supreme Court of the United States. imprisonment and fine. The court, on forms prescribed by The reasonable fees and costs of defending the action the Department of Justice, shall notify the department of shall be a charge on funds appropriated to the Department persons subject to this section. However,the prohibition in of Justice, which shall be satisfied promptly. this section may be reduced,eliminated, or conditioned as provided in Section 29855 or 29860. PROPOSITION 64 SEC. 12. Interim Standards. This initiative measure is submitted to the people in Notwithstanding the Administrative Procedure Act (APA), accordance with the provisions of Section 8.of Article II of and in order to facilitate the prompt implementation of the the California Constitution. Safety for All Act of 2016, the California Department of This initiative measure amends, repeals, and adds sections Justice may adopt interim standards without compliance to the Business and Professions Code, the Food and with the procedures set forth in the APA. The interim Agricultural Code, the Health and Safety Code, the Labor standards shall remain in effect for no more than two Code,the Revenue and Taxation Code,and the Water Code; years, and may be earlier superseded by regulations therefore, existing provisions proposed to be deleted are adopted pursuant to the APA. "Interim standards" means printed in strikeetit type and new provisions proposed to be temporary standards that perform the same function as "emergency regulations" under the Administrative added are printed in italic type to indicate that they are Procedure Act (Chapter 3.5 (commencing with new. Section 11340) of Part 1 of Division 3 of Title 2 of the PROPOSED LAW Government Code), except that in order to provide greater opportunity for public comment on permanent regulations, SECTION 1. Title. the interim standards may remain in force for two years This measure shall be known and may be cited as the rather than 180 days. Control, Regulate and Tax Adult Use of Marijuana Act("the SEC. 13. Amending the Measure. Adult Use of Marijuana Act"). •' This Act shall be broadly construed to accomplish its SEC. 2. Findings and Declarations. purposes. The provisions of this measure may be amended A. Currently in California, nonmedical marijuana use is by a vote of 55 percent of the members of each house of unregulated, untaxed, and occurs without any consumer or the Legislature and signed by the Governor so long as such environmental protections. The Control, Regulate and Tax amendments are consistent with and further the intent of Adult Use of Marijuana Act will legalize marijuana for this Act. those over 21 years old, protect children, and establish SEC. 14. Conflicting Measures. laws to regulate marijuana cultivation, distribution, sale (a) In the event that this measure and another measure on and use, and will protect Californians and the environment the same subject matter, including but not limited to the from potential dangers. It establishes the Bureau of regulation of the sale or possession of firearms or Marijuana Control within the Department of Consumer ammunition, shall appear on the same statewide ballot, Affairs to regulate and license the marijuana industry. the provisions of the other measure or measures shall be B. Marijuana is currently legal in our state for medical use deemed to be in conflict with this measure. In the event and illegal for nonmedical use. Abuse of the medical that this measure receives a greater number of affirmative marijuana system in California has long been widespread, votes than a measure deemed to be in conflict with it, the but recent bipartisan legislation signed by Governor Jerry provisions of this measure shall prevail in their entirety, Brown is establishing a comprehensive regulatory scheme and the other measure or measures shall be null and void. for medical marijuana. The Control, Regulate and Tax (b) If this measure is approved by voters but superseded Adult Use of Marijuana Act(hereafter called the Adult Use by law by any other conflicting measure approved by voters of Marijuana Act)will consolidate and streamline regulation at the same election, and the conflicting ballot measure is and taxation for both nonmedical and medical marijuana. later held invalid,this measure shall be self-executing and C. Currently, marijuana growth and sale is not being taxed given full force and effect. by the State of California,which means our state is missing SEC. 15. Severability. out on hundreds of millions of dollars in potential tax If any provision of this measure,or part of this measure,or revenue every year. The Adult Use of Marijuana Act will tax the application of any provision or part to any person or both the growth and sale marijuana to generate hundreds of millions of dollars annually. circumstance, is for any reason held to be invalid or The revenues will cover the unconstitutional, the remaining provisions, or applications cost of administering the new law and will provide funds of provisions, shall not affected, but shall remain in full to: invest in public health programs that educate youth to law force and effect, and to this end the provisions of this enforcemenntr�vnt andtreat to enforce the newseriousnce law with aabuse; train focusoonlDUI measure are severable. enforcement; invest in communities to reduce the illicit SEC. 16. Proponent Standing. market and create job opportunities; and provide for Notwithstanding any other provision of law, if the State, environmental cleanup and restoration of public lands government agency,or any of its officials fail to defend the damaged by illegal marijuana cultivation. constitutionality of this Act, following its approval by the D. Currently, children under the age of 18 can just as voters, any other government employer, the proponent, or easily purchase marijuana on the black market as adults in their absence, any citizen of this State shall have the can. By legalizing marijuana, the Adult Use of Marijuana authority to intervene in any court action challenging the Act will incapacitate the black market,and move marijuana • constitutionality of this Act for the purpose of defending purchases into a legal structure with strict safeguards its constitutionality,whether such action is in trial court, against children accessing it. The Adult Use of Marijuana on appeal, or on discretionary review by the Supreme Court Act prohibits the sale of nonmedical marijuana to those 178 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUEO under 21 years old, and provides new resources to educate cultivation licenses for the first five years.The Adult Use of • youth against drug abuse and train local law enforcement Marijuana Act also protects consumers and small to enforce the new law. It bars marijuana businesses from businesses by imposing strict anti-monopoly restrictions being located within 600 feet of schools and other areas for businesses that participate in the nonmedical marijuana where children congregate. It establishes mandatory and industry. strict packaging and labeling requirements for marijuana SEC. 3. Purpose and Intent. and marijuana products. And it mandates that marijuana and marijuana products cannot be advertised or marketed The purpose of the Adult Use of Marijuana Act is to towards children. establish a comprehensive system to legalize, control and E. There are currently no laws governing adult use regulate the cultivation, processing, manufacture, marijuana businesses to ensure that they operate in distribution, testing, and sale of nonmedical marijuana, accordance with existing California laws. Adult use of including marijuana products, for use by adults 21 years marijuana may only be accessed from the unregulated and older, and to tax the commercial growth and retail sale illicit market. The Adult Use of Marijuana Act sets up a of marijuana. It is the intent of the people in enacting this comprehensive system governing marijuana businesses at act to accomplish the following: the state level and safeguards local control, allowing local (a) Take nonmedical marijuana production and sales out governments to regulate marijuana-related activities, to of the hands of the illegal market and bring them under a subject marijuana businesses to zoning and permitting regulatory structure that prevents access by minors and requirements, and to ban marijuana businesses by a vote protects public safety, public health, and the environment. of the people within a locality. (b) Strictly control the cultivation, processing, F. Currently, illegal marijuana growers steal or divert manufacture, distribution, testing and sale of nonmedical millions of gallons of water without any accountability.The marijuana through a system of state licensing, regulation, Adult Use of Marijuana Act will create strict environmental and enforcement. regulations to ensure that the marijuana is grown efficiently (c) Allow local governments to enforce state laws and and legally, to regulate the use of pesticides, to prevent regulations for nonmedical marijuana businesses and wasting water, and to minimize water usage.The Adult Use enact additional local requirements for nonmedical of Marijuana Act will crack down on the illegal use of water marijuana businesses, but not require that they do so for a and punish bad actors, while providing funds to restore nonmedical marijuana business to be issued a state license lands that have been damaged by illegal marijuana grows. and be legal under state law. If a business does not demonstrate they are in full compliance with the applicable water usage and (d) Allow local governments to ban nonmedical marijuana environmental laws, they will have their license revoked. businesses as set forth in this act. G. Currently, the courts are clogged with cases of non- (e) Require track and trace management procedures to violent drug offenses. By legalizing marijuana, the Adult track nonmedical marijuana from cultivation to sale. Use of Marijuana Act will alleviate pressure on the courts, (f) Require nonmedical marijuana to be comprehensively but continue to allow prosecutors to charge the most tested by independent testing services for the presence of serious marijuana-related offenses as felonies, while contaminants, including mold and pesticides, before it reducing the penalties for minor marijuana-related offenses can be sold by licensed businesses. as set forth in the act. (g) Require nonmedical marijuana sold by licensed H. By bringing marijuana into a regulated and legitimate businesses to be packaged in child-resistant containers market, the Adult Use of Marijuana Act creates a and be labeled so that consumers are fully informed about transparent and accountable system. This will help police potency and the effects of ingesting nonmedical marijuana. crackdown on the underground black market that currently benefits violent drug cartels and transnational gangs, (h) Require licensed nonmedical marijuana businesses to which are making billions from marijuana trafficking and follow strict environmental and product safety standards jeopardizing public safety. as a condition of maintaining their license. I. The Adult Use of Marijuana Act creates a comprehensive (i) Prohibit the sale of nonmedical marijuana by businesses regulatory structure in which every marijuana business is that also sell alcohol or tobacco. overseen by a specialized agency with relevant expertise. (j) Prohibit the marketing and advertising of nonmedical The Bureau of Marijuana Control,housed in the Department marijuana to persons younger than 21 years old or near of Consumer Affairs, will oversee the whole system and schools or other places where children are present. ensure a smooth transition to the legal market, with (k) Strengthen the state's existing medical marijuana licenses issued beginning in 2018. The Department of system by requiring patients to obtain by January 1, 2018, Consumer Affairs will also license and oversee marijuana a new recommendation from their physician that meets the Department of Food and Agriculturree will license and retailers, distributors, and mi The strict standards signed into law by the Governor in 2015,oversee marijuana cultivation,ensuring it is environmentally and by providing new privacy protections for patients whoobtain medical marijuana identification cards as set forth safe. The State Department of Public Health will license in this act. and oversee manufacturing and testing, ensuring consumers receive a safe product. The State Board of (D Permit adults 21 years and older to use, possess, Equalization will collect the special marijuana taxes, and purchase and grow nonmedical marijuana within defined the Controller will allocate the revenue to administer the limits for use by adults 21 years and older as set forth in new law and provide the funds to critical investments. this act. J. The Adult Use of Marijuana Act ensures the nonmedical (m) Allow local governments to reasonably regulate the • marijuana industry in California will be built around small cultivation of nonmedical marijuana for personal use by and medium sized businesses by prohibiting large-scale adults 21 years and older through zoning and other local Text of Proposed Laws 1 179 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED laws, and only to ban outdoor cultivation as set forth in this (b) The weight of any other ingredient combined with act. marijuana to prepare topical or oral administrations, food, (n) Deny access to marijuana by persons younger than 21 drink, or other product. d who are not medical marijuana patients. SEC. 4.2. Section 11018.1 is added to the Health and (o) ibit the consumption of marijuana in a public Safety Code, to read: (,V'coh�ools nlicensed for such use, including near K-12 11018.1. Marijuana Products. and other areas where children are present. 'Marijuana products"means marijuana that has undergone (p) Maintain existing laws making it unlawful to operate a a process whereby the plant material has been transformed car or other vehicle used for transportation while impaired into a concentrate, including, but not limited to, by marijuana. concentrated cannabis, or an edible or topical product (q) Prohibit the cultivation of marijuana on public lands or containing marijuana or concentrated cannabis and other while trespassing on private lands. ingredients. (r) Allow public and private employers to enact and enforce SEC. 4.3. Section 11018.2 is added to the Health and workplace policies pertaining to marijuana. Safety Code, to read: (s) Tax the growth and sale of marijuana in a way that 11018.2. Marijuana Accessories. drives out the illicit market for marijuana and discourages "Marijuana accessories" means any equipment, products use by minors, and abuse by adults. or materials of any kind which are used, intended for use, (t) Generate hundreds of millions of dollars in new state or designed for use in planting, propagating, cultivating, revenue annually for restoring and repairing the growing, harvesting, manufacturing, compounding, environment, youth treatment and prevention, community converting, producing, processing, preparing, testing, investment, and law enforcement. analyzing, packaging, repackaging, storing, smoking, al production or distribution of marijuana. vaponzmg, or containing marijuana, or for ingesting, (u) Prevent illegal P J inhaling, or otherwise introducing marijuana or marijuana (v) Prevent the illegal diversion of marijuana from products into the human body. California to other states or countries or to the illegal SEC. 4.4. Section 11362.1 is added to the Health and market. Safety Code, to read: (w) Preserve scarce law enforcement resources to prevent 11362.1. (a) Subject to Sections 11352.2, 11362.3, and prosecute violent crime. 11362.4, and 11362.45, but notwithstanding any other (x) Reduce barriers to entry into the legal, regulated provision of law, it shall be lawful under state and local market. law, and shall not be a violation of state or local law, for (y) Require minors who commit marijuana-related offenses persons 21 years of age or older to: to complete drug prevention education or counseling and (1) Possess, process, transport, purchase, obtain, orgive community service. away to persons 21 years of age or older without any (z) Authorize courts to resentence persons who are compensation whatsoever, not more than 28.5 grams of currently serving a sentence for offenses for which the marijuana not in the form of concentrated cannabis; penalty is reduced by the act, so long as the person does (2) Possess, process, transport, purchase, obtain, or give not pose a risk to public safety, and to redesignate or away to persons 21 years of age or older without any dismiss such offenses from the criminal records of persons compensation whatsoever, not more than eight grams of who have completed their sentences as set forth in this marijuana in the form of concentrated cannabis, including act. as contained in marijuana products; (aa) Allow industrial hemp to be grown as an agricultural (3) Possess, plant, cultivate, harvest, dry, or process not product, and for agricultural or academic research, and more than six living marijuana plants and possess the regulated separately from the strains of cannabis with marijuana produced by the plants; higher delta-9 tetrahydrocannabinol concentrations. (4) Smoke or ingest marijuana or marijuana products;and SEC. 4. Personal Use. (5) Possess,transport,purchase,obtain,use,manufacture, SEC. 4.1. Section 11018 of the Health and Safety Code or give away marijuana accessories to persons 21 years of is amended to read: age or older without any compensation whatsoever. 11018. Marijuana. (b) Paragraph (5) of subdivision (a) is intended to meet "Marijuana" means all parts of the plant Cannabis sativa the requirements of subsection (f) of Section 863 of L., whether growing or not; the seeds thereof; the resin Title 21 of the United States Code(21 U.S.C. Sec. 863(f)) extracted from any part of the plant; and every compound, by authorizing, under state law, any person in compliance manufacture, salt, derivative, mixture, or preparation of with this section to manufacture, possess, or distribute the plant, its seeds or resin. It does not include tine-maturte marijuana accessories. stalks of the plamt, fiber piredueed frafn the stalks, all of (c) Marijuana and marijuana products involved in any way eake firiade from the seeds of the plant, any ot with conduct deemed lawful by this section are not contraband nor subject to seizure, and no conduct deemed lawful by this section shall constitute the basis for therefrom), 1...refr..m) fiber, 61, or ..ake or the ..teril:__J seed of the detention, search, or arrest. SEC. 4.5. Section 11362.2 is added to the Health and (a) Industrial hemp, as defined in Section 11018.5, or Safety Code, to read: 180 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED 11362.2. (a) Personal cultivation of marijuana under (4) Possess an open container or open package of paragraph (3) of subdivision (a) of Section 11362.1 is marijuana or marijuana products while driving, operating, subject to the following restrictions: or riding in the passenger seat or compartment of a motor (1) A person shall plant, cultivate, harvest, dry, or process vehicle, boat, vessel, aircraft, or other vehicle used for plants in accordance with local ordinances, if any, adopted transportation. in accordance with subdivision (b). (5) Possess, smoke or ingest marijuana or marijuana (2) The living plants and any marijuana produced by the products in or upon the grounds of a school, day care plants in excess of 28.5 grams are kept within the person s center, or youth center while children are present. private residence, or upon the grounds of that private (5) Manufacture concentrated cannabis using a volatile residence (e.g., in an outdoor garden area), are in a locked solvent, unless done in accordance with a license under space, and are not visible by normal unaided vision from a Chapter 3.5 (commencing with Section 19300) of public place. Division 8 of, or Division 10 of, the Business and (3) Not more than six living plants may be planted, Professions Code. cultivated, harvested, dried, or processed within a single (7) Smoke or ingest marijuana or marijuana products private residence, or upon the grounds of that private while driving, operating a motor vehicle, boat, vessel, residence, at one time. aircraft, or other vehicle used for transportation. (b) (1) A city, county, or city and county may enact and (8) Smoke or ingest marijuana or marijuana products enforce reasonable regulations to reasonably regulate the while riding in the passenger seat or compartment of a actions and conduct in paragraph (3)of subdivision (a)of motor vehicle, boat, vessel, aircraft, or other vehicle used Section 11362.1. for transportation except as permitted on a motor vehicle, (2) Notwithstanding paragraph (1), no city, county, or city boat,vessel,aircraft,or other vehicle used for transportation and county may completely prohibit persons engaging in that is operated in accordance with Section 26200 of the the actions and conduct under paragraph (3) of Business and Professions Code and while no per the age of 21 years are present. subdivision (a) of Section 11362.1 inside a private .i' residence, or inside an accessory structure to a private (b) For purposes of this section, care center"has he residence located upon the grounds of a private residence same meaning as in Section 1 6.76. that is fully enclosed and secure. (c) For purposes of this sectio "smok o inhale, (3) Notwithstanding paragraph (3) of subdivision (a) of exhale, burn, or carry any lighte or eated device or pipe, Section 11362.1, a city, county, or city and county may or any other lighted or heated marijuana or marijuana completely prohibit persons from engaging in actions and product intended for inhalation, whether natural or conduct under paragraph (3) of subdivision (a) of synthetic, in any manner or in any form. "Smoke"includes Section 11362.1 outdoors upon the grounds of a private the use of an electronic smoking device that creates an residence, aerosol or vapor, in any manner or in any form, or the use (4) Paragraph (3) shall become inoperative u of any oral smoking device for the.purpose of circumventing g p P upon a the prohibition of smoking in a place. determination by the California Attorney General that nonmedical use of marijuana is lawful in the State of (d) For purposes of this section, "volatile solvent"means California under federal law, and an act taken by a city, volatile organic compounds, including:(1)explosive gases, county, or city and county under paragraph (3) shall be such as Butane, Propane, Xylene, Styrene, Gasoline, deemed repealed upon the date of such determination by Kerosene, 02 or H2; and (2) dangerous poisons, toxins, or the Attorney General. carcinogens, such as Methanol, lso-pr 1, Methylene Chloride, Acetone, Benzen e, and Tr (5) For purposes of this section, "private residence" chloro-ethylene. means a house, an apartment unit, a mobile home, or (e) For purposes of this secti 'youth center" ha e other similar dwelling. same meaning as in Section 1 353.1. f SEC. 4.6. Section 11362.3 is added to the Health and (f) Nothing in this section sha rued or interpreted Safety Code, to read: to amend, repeal, affect, restrict, or preempt laws 11362.3. (a) Nothing in Section 11362.1 shall be pertaining to the Compassionate Use Act of 1996. construed to permit any person to: SEC. 4.7. Section 11362.4 is added to the Health and (1) Smoke or ingest marijuana or marijuana products in Safety Code, to read: any public place,except in accordance with Section 26200 11362.4. (a) A person who engages in the conduct of the Business and Professions Code. described in paragraph (1) of subdivision (a) of (2) Smoke marijuana or marijuana products in a location Section 11362.3 is guilty of an infraction punishable by where smoking tobacco is prohibited. no more than a one hundred dollar($100) fine; provided, (3) Smoke marijuana or marijuana products within 1,000 however, that persons under the age of 18 shall instead be feet of a school, day care center, or youth center while required to complete four hours of a drug education children are present at such a school, day care center, or program or counseling, and up to 10 hours of community youth center, except in or upon the grounds of a private service, over a period not to exceed 60 days once the drug residence or in accordance with Section 26200 of, or education program or counseling and community service Chapter 3.5 (commencing with Section 19300) of opportunity are made available to the person. Division 8 of, the Business and Professions Code and only (b) A person who engages in the conduct described in if such smoking is not detectable by others on the grounds paragraphs (2) through (4) of subdivision (a) of of such a school, day care center, or youth center while Section 11362.3 shall be guilty of an infraction punishable children are present. by no more than a two-hundred-fifty-dollar ($250) fine, Text of Proposed Laws 1 181 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED unless such activity is otherwise permitted by state and (e) Laws providing that it would constitute negligence or local law;.provided, however, that persons under the age of professional malpractice to undertake any task while 18 shall instead be required to complete four hours of drug impaired from smoking or ingesting marijuana or marijuana education or counseling, and up to 20 hours of community products. service, over a period not to exceed 90 days once the drug (f) The rights and obligations of public and private education program or counseling and community service employers to maintain a drug and alcohol free workplace or opportunity are made available to the person. require an employer to permit or accommodate the use, (c) A person who engages in the conduct described in consumption, possession, transfer, display, transportation, paragraph (5)of subdivision (a) of Section 11362.3 shall sale, or growth of marijuana in the workplace, or affect the be subject to the same punishment as provided under ability of employers to have policies prohibiting the use of subdivision(c)or(d)of Section 11357. marijuana by employees and prospective employees, or (d) A person who engages in the conduct described in prevent employers from complying with state or federal law. paragraph (6)of subdivision (a)of Section 11362.3 shall be subject to punishment under Section 11379.6. (g) The ability of a state or local government agency to (e) A person who violates the restrictions in subdivision(a)of prohibit or restrict any of the actions or conduct otherwise permitted under Section 11362.1 within a building owned, Section 11362.2 is guilty of an infraction punishable by leased, or occupied by the state or local government no more than a two-hundred-fifty-dollar($250)fine. agency. (f) Notwithstanding subdivision (e), a person under the (h) The ability of an individual or private entity to prohibit age of 18 who violates the restrictions in subdivision (a)of or restrict any of the actions or conduct otherwise permitted Section 11362.2 shall be punished under subdivision(a)of under Section 11362.1 on the individual' or entity's Section 11358. privately owned property. (g) (1) The drug education program or counseling hours (I) Laws pertaining to the Compassionate Use Act of 1996. required by this section shall be mandatory unless the .' court makes a finding that such a program or counseling is SEC. 5. Use of Marijuana for Medical Purposes. unnecessary for the person or that a drug education SEC. 5.1. Section 11362.712 is added to the Health program or counseling is unavailable. and Safety Code, to read: (2) The drug education program required by this section 11362.712. (a) Commencing on January 1, 2018, a for persons under the age of 18 must be free to participants qualified patient must possess a physician's and provide at least four hours of group discussion or recommendation thatcomplies with Article 25(commencing instruction based on science and evidence-based principles with Section 2525) of Chapter 5 of Division 2 of the and practices specific to the use and abuse of marijuana Business and Professions Code. Failure to comply with this and other controlled substances. requirementshall not,however,affectanyof the protections (h) Upon a finding of good cause, the court may extend provided to patients or their primary caregivers by Section 11362.5. the time for a person to complete the drug education or counseling, and community service required under this (b) A county health department or the county's designee section. shall develop protocols to ensure that, commencing upon SEC. 4.8. Section 11362.45 is added to the Health and January 1, 2018, all identification cards issued pursuant to Section 11362.71 are supported by a physician's Safety Code, to read: recommendation that complies with Article 25 11362.45. Nothing in Section 11362.1 shall be (commencing with Section 2525)of Chapter 5 of Division 2 construed or interpreted to amend, repeal, affect, restrict, of the Business and Professions Code. or preempt: SEC. 5.2. Section 11362.713 is added to the Health (a) Laws making it unlawful to drive or operate a vehicle, and Safety Code, to read: boat, vessel, or aircraft, while smoking, ingesting, or 11362.713. (a) Information identifying the names, impaired by, marijuana or marijuana products, including, addresses, or social security numbers of patients, their but not limited to, subdivision (e)of Section 23152 of the medical conditions, or the names of their primary Vehicle Code, or the penalties prescribed for violating caregivers, received and contained in the records of the those laws. State Department of Public Health and by any county (b) Laws prohibiting the sale,administering, furnishing, or public health department are hereby deemed "medical giving away of marijuana,marijuana products,or marijuana information" within the meaning of the Confidentiality of accessories, or the offering to sell, administer, furnish, or Medical Information Act (Part 2.6 (commencing with give away marijuana, marijuana products, or marijuana Section 56)of Division 1 of the Civil Code) and shall not accessories to a person younger than 21 years of age. be disclosed by the department or by any county public health department except in accordance with the (c) Laws prohibiting a person younger than 21 years of age restrictions on disclosure of individually identifiable from engaging in any of the actions or conduct otherwise information under the Confidentiality of Medical permitted under Section 11362.1. Information Act. (d) Laws pertaining to smoking or ingesting marijuana or (b) Within 24 hours of receiving any request to disclose marijuana products on the grounds of, or within, any the name, address, or social security number of a patient, facility or institution under the jurisdiction of the their medical condition, or the name of their primary Department of Corrections and Rehabilitation or the caregiver, the State Department of Public Health or any Division of Juvenile Justice, or on the grounds of, or within, county public health agency shall contact the patient and any other facility or institution referenced in Section 4573 inform the patient of the request and if the request was of the Penal Code. made in writing, a copy of the request. 182 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED (c) Notwithstanding Section 56.10 of the Civil Code, SEC. 5.5. Section 11362.85 is added to the Health and neither the State Department of Public Health, nor any Safety Code, to read: county public health agency, shall disclose, nor shall they 11362.85. Upon a determination by the California be ordered by agency or court to disclose, the names, Attorney General that the federal schedule of controlled addresses, or social security numbers of patients, their substances has been amended to reclassify or declassify medical conditions, or the names of their primary marijuana, the Legislature may amend or repeal the caregivers, sooner than the loth day after which the provisions of the Health and Safety Code, as necessary, to patient whose records are sought to be disclosed has been conform state law to such changes in federal law. contacted. (d) No identification card application system or database SEC. 6. Marijuana Regulation and Safety. used or maintained by the State Department of Public SEC. 6.1. Division 10 (commencing with Section Health or by any county department of public health or the 26000) is added to the Business and Professions Code, to county's designee as provided in Section 11362.71 shall read: contain any personal information of any qualified patient, DIVISION 10. MARIJUANA including, but not limited to, the patient's name, address, social security number, medical conditions, or the names CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS of their primary caregivers. Such an application system or 26000. (a) The purpose and intent of this division is to database may only contain a unique user identification establish a comprehensive system to control and regulate number, and when that number is entered, the only the cultivation, distribution, transport, storage, information that may be provided is whether the card is manufacturing, processing, and sale of nonmedical valid or invalid. marijuana and marijuana products for adults 21 years of SEC. 5.3. Section 11362.755 of the Health and Safety age and over. Code is amended to read: (b) In the furtherance of subdivision (a), this division 11362.755. (a) The department shall establish expands the power and duties of the existing state agencies applieetiom and renewal fees for persons seekirig to obtaim responsible for controlling and regulating the medical •' eF____...:d__W:__.:__ ___a_that are_..fr:_ient to.._yer the cannabis industry under Chapter 3.5 (commencing with Section 19300) of Division 8 to include the power and east, 1L_ 1 _F.wide._ fees for Meth Gal b,.nefieiar:.._ :- duty to control and regulate the commercial nonmedical marijuana industry. (c) The Legislature may, by majority vote, enact laws to system, and the east of maimtaiming the 24 hetir to" free telepheme number. Each county health department or the implement this division, provided such laws are consistent county's designee may charge an additiema1 a fee for all with the purposes and intent of the Control, Regulate and costs incurred by the county or the county's designee for Tax Adult Use of Marijuana Act. administering the program pursuant to this article. 26001. For purposes of this division, the following (b) In no event shall the amount of the fee charged by a definitions shall apply. county health department exceed one hundred dollars (a) `Applicant"means the following. ($100)per application or renewal. (1) The owner or owners of a proposed licensee. "Owner" fb) (c) Upon satisfactory proof of participation and means all persons having (A) an aggregate ownership eligibility in the Medi-Cal program, a Medi-Cal beneficiary interest(other than a security interest,lien,orencumbrance) shall receive a 50 percent reduction in the fees established of 20 percent or more in the licensee and(B)the power to pursuant to this section. direct or cause to be directed, the management or control (d) Upon satisfactory proof that a qualified patient, or the of the licensee. legal guardian of a qualified patient under the age of 18, (2) If the applicant is a publicly traded company, "owner" is a medically indigent adult who is eligible for and includes the chief executive officer and any member of the participates in the County Medical Services Program, the board of directors and any person or entity with an fee established pursuant to this section shall be waived. aggregate ownership interest in the company of 20 percent (e) In the event the fees charged and collected by a county or more. If the applicant is a nonprofit entity, "owner" health department are not sufficient to pay for the means both the chief executive officer and any member of administrative costs incurred in discharging the county the board of directors. health department's duties with respect to the mandatory (b) "Bureau" means the Bureau of Marijuana Control identification card system, the Legislature, upon request within the Department of Consumer Affairs. by the county health department, shall reimburse the county health department for those reasonable (c) "Child resistant"means designed or constructed to be administrative costs in excess of the fees charged and significantly difficult for children under five years of age to collected by the county health department. open, and not difficult for normal adults to use properly. SEC. 5.4. Section 11362.84 is added to the Health and (d) "Commercial marijuana activity" includes the Safety Code, to read: cultivation, possession, manufacture, distribution, 11362.84. The status and conduct of a qualified patient processing, storing, laboratory testing, labeling, who acts in accordance with the Compassionate Use Act transportation, distribution, delivery or sale of marijuana shall not, by itself, be used to restrict or abridge custodial and marijuana products as provided for in this division. or parental rights to minor children in any action or (e) "Cultivation"means any activity involving the planting, proceeding under the jurisdiction of family or juvenile growing, harvesting, drying, curing,grading, or trimming of court. marijuana. Text of Proposed Laws 1 183 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED (f) "Customer"means a natural person 21 years of age or (w) "Operation" means any act for which licensure is over. required under the provisions of this division, or any (g) "Day care center"shall have the same meaning as in commercial transfer of marijuana or marijuana products. Section 1596.76 of the Health and Safety Code. (x) "Package"means any container or receptacle used for (h) "Delivery"means the commercial transfer of marijuana holding marijuana or marijuana products. or marijuana products to a customer. "Delivery" also (y) "Person" includes any individual, firm, copartnership, includes the use by a retailer of any technology platform joint venture, association, corporation, limited liability owned and controlled by the retailer, or independently company, estate, trust, business trust, receiver, syndicate, licensed under this division, that enables customers to or any other group or combination acting as a unit, and the arrange for or facilitate the commercial transfer by a plural as well as the singular. licensed retailer of marijuana or marijuana products. (z) "Purchaser"means the customer who is engaged in a (i) "Director" means the Director of the Department of transaction with a licensee for purposes of obtaining Consumer Affairs. marijuana or marijuana products. (j) "Distribution" means the procurement, sale, and (aa) "Sell," "sale," and "to sell" include any transaction transport of marijuana and marijuana products between whereby, for any consideration, title to marijuana is entities licensed pursuant to this division. transferred from one person to another, and includes the (k) "Fund"means the Marijuana Control Fund established delivery of marijuana or marijuana products pursuant to an pursuant to Section 26210. order placed for the purchase of the same and soliciting or (I) "Kind"means applicable type or designation regarding return/ng an order for the same, but does not nclude the of marijuana or marijuana products by allicensee to a particular marijuana variant or marijuana product type, the licensee from whom such marijuana or marijuana including, but not limited to, strain name or other grower product was purchased. trademark, or growing area designation. (m) "License" means a state license issued under this (bb) "Testing service"means a laboratory, facility,or entity division. in the state, that offers or performs tests of marijuana or marijuana products, including the equipment provided by (n) "Licensee" means any person or entity holding a such laboratory, facility, or entity, and that is both of the license under this division. following. (o) "Licensing authority" means the state agency (1) Accredited by an accrediting body that is independent responsible for the issuance, renewal, or reinstatement of from all other persons involved in commercial marijuana the license, or the state agency authorized to take activity in the state. disciplinary action against the licensee. (p) "Local jurisdiction" means a city, county, or city and (2) Registered with the State Department of Public Health. county. (cc) "Unique identifier" means an alphanumeric code or designation used for reference to a specific plant on a (q) "Manufacture" means to compound, blend, extract, licensed premises. infuse, or otherwise make or prepare a marijuana product. person that conducts the (dd) "Unreasonably impracticable" means that the (r) "Manufacturer" means a p measures necessary to comply with the regulations require production, preparation, propagation, or compounding of such a high investment of risk, money, time, or any other marijuana or marijuana products either directly or indirectly resource or asset, that the operation of a marijuana or by extraction methods, or independently by means of establishment is not worthy of being carried out in practice chemical synthesis, or by a combination of extraction and by a reasonably prudent business person. chemical synthesis at a fixed location that packages or repackages marijuana or marijuana products or labels or (ee) "Youth center" shall have the same meaning as in re-labels its container, that holds a state license pursuant Section 11353.1 of the Health and Safety Code. to this division. CHAPTER 2. ADMINISTRATION (s) "Marijuana"has the same meaning as in Section 11018 26010. (a) The Bureau of Medical Marijuana Regulation of the Health and Safety Code, except that it does not established in Section 19302 is hereby renamed the include marijuana that is cultivated, processed, Bureau of Marijuana Control. The director shall administer transported, distributed, or sold for medical purposes and enforce the provisions of this division in addition to under Chapter 3.5 (commencing with Section 19300) of the provisions of Chapter 3.5 (commencing with Division 8. Section 19300) of Division 8. The director shall have the (t) "Marijuana accessories" has the same meaning as in same power and authority as provided by subdivisions (b) Section 11018.2 of the Health and Safety Code. and(c)of Section 19302.1 for purposes of this division. (u) "Marijuana products" has the same meaning as in (b) The bureau and the director shall succeed to and are Section 11018.1 of the Health and Safety Code, except vested with all the duties,powers,purposes,responsibilities, that it does not include marijuana products manufactured, and jurisdiction vested in the Bureau of Medical Marijuana processed, transported, distributed, or sold for medical Regulation under Chapter 3.5 (commencing with purposes under Chapter 3.5 (commencing with Section 19300)of Division 8. Section 19300)of Division 8. (c) In addition to the powers, duties, purposes, (v) "Nursery"means a licensee that produces only clones, responsibilities, and jurisdiction referenced in immature plants, seeds, and other agricultural products subdivision(b), the bureau shall heretofore have the power, used specifically for the planting, propagation, and duty, purpose, responsibility, and jurisdiction to regulate cultivation of marijuana. commercial marijuana activity as provided in this division. 184 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED (d) Upon the effective date of this section, whenever with Section 11340)of Part 1 of Division 3 of Title 2 of the "Bureau of Medical Marijuana Regulation"appears in any Government Code, and, for purposes of that chapter, statute, regulation, or contract, or in any other code, it including Section 11349.6 of the Government Code, the shall be construed to refer to the bureau. adoption of the regulation is an emergency and shall be 26011. Neither the chief of the bureau nor any member considered by the Office of Administrative Law as necessary of the Marijuana Control Appeals Panel established under for the immediate preservation of the public peace, health Section 26040 shall do any of the following: and safety, and general welfare. (a) Receive any commission or profit whatsoever, directly (c) Regulations issued under this division shall be or indirectly, from any person applying for or receiving any necessary to achieve the purposes of this division, based license or permit under this division or Chapter 3.5 on best available evidence, and shall mandate only (commencing with Section 19300)of Division B. commercially feasible procedures, technology, or other (b) Engage or have any interest in the sale or any insurance requirements,and shall not unreasonably restrain or inhibit covering a licensee's business or premises. the development of alternative procedures or technology to achieve the same substantive requirements, nor shall such (c) Engage or have any interest in the sale of equipment regulations make compliance unreasonably impracticable. for use upon the premises of a licensee engaged in commercial marijuana activity. 26014. (a) The bureau shall convene an advisory (d) Knowingly solicit any licensee for the purchase of committee to advise the bureau and licensing authorities tickets for benefits or contributions for benefits. on the development of standards and regulations pursuant to this division, including best practices and guidelines (e) Knowingly request any licensee to donate or receive that protect public health and safety while ensuring a money, or any other thing of value, for the benefit of any regulated environment for commercial marijuana activity person whatsoever. that does not impose such unreasonably impracticable 26012. (a) It being a matter of statewide concern, barriers so as to perpetuate, rather than reduce and except as otherwise authorized in this division: eliminate, the illicit market for marijuana. (1) The Department of Consumer Affairs shall have the (b) The advisory committee members shall include, but exclusive authority to create, issue, renew, discipline, not be limited to,representatives of the marijuana industry, suspend, or revoke licenses for the transportation, storage representatives of labor organizations, appropriate state unrelated to manufacturing activities, distribution, and and local agencies, public health experts, and other sale of marijuana within the state. subject matter experts, including representatives from the (2) The Department of Food and Agriculture shall Department of Alcoholic Beverage Control, with expertise administer the provisions of this division related to and in regulating commercial activity for adult-use intoxicating associated with the cultivation of marijuana. The substances. The advisory committee members shall be Department of Food and Agriculture shall have the authority determined by the director. to create, issue, and suspend or revoke cultivation licenses (c) Commencing on January 1, 2019, the advisory for violations of this division. committee shall publish an annual public report describing (3) The State Department of Public Health shall administer its activities including, but not limited to, the the provisions of this division related to and associated recommendations the advisory committee made to the with the manufacturing and testing of marijuana. The bureau and licensing authorities during the immediately State Department of Public Health shall have the authority preceding calendar year and whether those to create, issue, and suspend or revoke manufacturing and recommendations were implemented by the bureau or testing licenses for violations of this division. licensing authorities. (b) The,licensing authorities and the bureau shall have the 26015. A licensing authority may make or cause to be authority to collect fees in connection with activities they made such investigation as it deems necessary to carry out regulate concerning marijuana. The bureau may create its duties under this division. licenses in addition to those identified in this division that the bureau deems necessary to effectuate its duties under 26016. For any hearing held pursuant to this division, this division. except a hearing held under Chapter 4 (commencing with (c) Licensing authorities shall begin issuing licenses under Section 26040), a licensing authority may delegate the this division by January 1, 2018. power to hear and decide to an administrative law judge. Any hearing before an administrative law judge shall be 26013. (a) Licensing authorities shall make and pursuant to the procedures, rules, and limitations prescribe reasonable rules and regulations as may be prescribed in Chapter 5(commencing with Section 11500) necessary to implement, administer and enforce their of Part 1 of Division 3 of Title 2 of the Government Code. respective duties under this division in accordance with 26017. In any hearing before a licensing authority Chapter 3.5 (commencing with Section 11340) of Part 1 pursuant to this division, the licensing authority may pay of Division 3 of Title 2 of the Government Code. Such rules and regulations shall be consistent with the purposes and any person appearing as a witness at the hearing at the intent of the Control, Regulate and Tax Adult Use of request of the licensing authority pursuant to a subpoena, Marijuana Act. his or her actual, necessary, and reasonable travel, food, (b) Licensing authorities may prescribe, adopt, and and lodging expenses,not to exceed the amount authorized enforce any emergency regulations as necessary to for state employees. implement, administer and enforce their respective duties 26018. A licensing authority may on its own motion at under this division. Any emergency regulation prescribed, any time before a penalty assessment is placed into effect, • adopted or enforced pursuant to this section shall be and without any further proceedings, review the penalty, adopted in accordance with Chapter 3.5 (commencing but such review shall be limited to its reduction. Text of Proposed Laws 1 185 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED CHAPTER 3. ENFORCEMENT under state law, or be subject to a civil fine or be a basis 26030. Grounds for disciplinary action include: for seizure or forfeiture of assets under state law. (a) Failure to comply with the provisions of this division or (b) The actions of a person who, in good faith, allows his any rule or regulation adopted pursuant to this division. or her property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and any (b) Conduct that constitutes grounds for denial of licensure applicable local ordinances, are not unlawful under state pursuant to Chapter 3 (commencing with Section 490)of law and shall not be an offense subject to arrest, Division 1.5. prosecution, or other sanction under state law, or be (c) Any other grounds contained in regulations adopted by subject to a civil fine or be a basis for seizure or forfeiture a licensing authority pursuant to this division. of assets under state law. (d) Failure to comply with any state law including, but not 26038. (a) A person engaging in commercial marijuana limited to, the payment of taxes as required under the activity without a license required by this division shall be Revenue and Taxation Code, except as provided for in this subject to civil penalties of up to three times the amount division or other California law of the license fee for each violation, and the court may order the destruction of marijuana associated with that (e) Knowing violations of any state or local law, ordinance, violation in accordance with Section 11479 of the Health or regulation conferring worker protections or legal rights and Safety Code. Each day of operation shall constitute a on the employees of a licensee. separate violation of this section. All civil penalties (f) Failure to comply with the requirement of a local imposed and collected pursuant to this section by a ordinance regulating commercial marijuana activity. licensing authority shall be deposited into the General (g) The intentional and knowing sale of marijuana or Fund except as provided in subdivision (b). marijuana products by a licensee to a person under the (b) If an action for civil penalties is brought against a legal age to purchase or possess. licensee pursuant to this division by the Attorney General 26031. Each licensing authority may suspend or revoke on behalf of the people, the penalty collected shall be deposited into the General Fund. If the action is brought licenses, after proper notice and hearing to the licensee, if by a district attorney the licensee is found to have committed any of the acts or county counsel, the penalty shall first be used to reimburse omissions constituting grounds for disciplinary action. The the district attorney or county counsel for the costs ofn bringing the action for civil disciplinary proceedings under this chapter shall be penalties, with the remainder, if any, to be deposited into conducted in accordance with Chapter 5 (commencing with Section 11500)of Part 1 of Division 3 of Title 2 of the the General Fund. If the action is brought by a city attorney Government Code, and the director of each licensing or city prosecutor, the penalty collected shall first be used to reimburse the city attorney or city prosecutor for the authority shall have all the powers granted therein. costs of bringing the action for civil penalties, with the 26032. Each licensing authority may take disciplinary remainder, if any, to be deposited into the General Fund. action against a licensee for any violation of this division (c) Notwithstanding subdivision (a), criminal penalties when the violation was committed by the licensee's agent shall continue to apply to an unlicensed person engaging or employee while acting on behalf of the licensee or in commercial marijuana activity in violation of this engaged in commercial marijuana activity. division. 26033. Upon suspension or revocation of a license, the CHAPTER 4. APPEALS licensing authority shall inform the bureau. The bureau 26040. (a) There is established in state government a shall then inform all other licensing authorities. Marijuana Control Appeals Panel which shall consist of 26034. Accusations against licensees under this division three members appointed by the Governor and subject to shall be filed within the same time limits as specified in confirmation by a majority vote of all of the members Section 19314 or as otherwise provided by law elected to the Senate. Each member, at the time of his or 26035. The director shall designate the persons her initial appointment, shall be a resident of a different employed by the Department of Consumer Affairs for county from the one in which either of the other members purposes of the administration and enforcement of this resides. Members of the panel shall receive an annual division. The director shall ensure that a sufficient number salary as provided for by Chapter 6 (commencing with of employees are qualified peace officers for purposes of Section 11550) of Part 1 of Division 3 of Title 2 of the enforcing this division. Government Code. 26036. Nothing in this division shall be interpreted to (b) The members of the panel may be removed from office supersede or limit state agencies from exercising their by the Governor, and the Legislature shall have the power, existing enforcement authority, including, but not limited by a majority vote of all members elected to each house, to to, under the Fish and Game Code, the Food and remove any member from office for dereliction of duty, Agricultural Code, the Government Code, the Health and corruption or incompetency. Safety Code, the Public Resources Code, the Water Code, (c) A concurrent resolution for the removal of any member or the application of those laws. of the panel may be introduced in the Legislature only if 5 26037. (a) The actions of a licensee, its employees, and Members of the Senate, or 10 Members of the Assembly, its agents that are (1) permitted under a license issued join as authors. under this division and any applicable local ordinances 26041. All personnel of the panel shall be appointed, and(2)conducted in accordance with the requirements of employed, directed, and controlled by the panel consistent this division and regulations adopted pursuant to this with state civil service requirements. The director shall division, are not unlawful under state law and shall not be furnish the equipment, supplies, and housing necessary an offense subject to arrest, prosecution, or other sanction for the authorized activities of the panel and shall perform 186 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED such other mechanics of administration as the panel and (8) Type 3A—Cultivation; Indoor; Medium. • the director may agree upon. (9) Type 3B—Cultivation; Mixed-light; Medium. 26042. The panel shall adopt procedures for appeals (10) Type 4—Cultivation; Nursery. similar to the procedures used in Article 3 (commencing with Section 23075) and Article 4 (commencing with (11) Type 5—Cultivation; Outdoor; Large. Section 23080) of Chapter 1.5 of Division 9 of the (12) Type 5A—Cultivation; Indoor; Large. Business and Professions Code. Such procedures shall be (13) Type 5B—Cultivation; Mixed-light; Large. adopted in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of (14) Type 6—Manufacturer 1. Part 1 of Division 3 of Title 2 of the Government Code). (15) Type 7—Manufacturer 2. 26043. (a) When any person aggrieved thereby appeals (16) Type 8-Testing. from a decision of the bureau or any licensing authority ordering any penalty assessment, issuing, denying, (17) Type 10—Retailer. transferring, conditioning, suspending or revoking any (18) Type 11—Distributor. license provided for under this division, the panel shall (19) Type 12—Microbusiness. review the decision subject to such limitations as may be imposed by the Legislature. In such cases, the panel shall (b) All licenses issued under this division shall bear a not receive evidence in addition to that considered by the clear designation indicating that the license is for bureau or the licensing authority. commercial marijuana activity as distinct from commercial (b) Review by the panel of a decision of the bureau or a medical cannabis activity licensed under Chapter 3.5 licensing authority shall be limited to the following (commencing with Section 19300)of Division 8. Examples of such a designation include, but are not limited to, 'Type questions: 1—Nonmedical,"or "Type 1 NM." (1) Whether the bureau or any licensing authority has (c) A license issued pursuant to this division shall be valid proceeded without or in excess of its jurisdiction. for 12 months from the date of issuance. The license may (2) Whether the bureau or any licensing authority has be renewed annually. proceeded in the manner required by law. (d) Each licensing authority shall establish procedures for (3) Whether the decision is supported by the findings. the issuance and renewal of licenses. (4) Whether the findings are supported by substantial (e) Notwithstanding subdivision (c), a licensing authority evidence in the light of the whole record. may issue a temporary license for a period of less than 26044. (a)In appeals where the panel finds that there is 12 months. This subdivision shall cease to be operative on relevant evidence which, in the exercise of reasonable January 1, 2019. diligence, could not have been produced or which was 25051. (a) In determining whether to grant, deny, or improperly excluded at the hearing before the bureau or renew a license authorized under this division, a licensing licensing authority, it may enter an order remanding the authority shall consider factors reasonably related to the matter to the bureau or licensing authority for determination, including, but not limited to, whether it is reconsideration in the light of such evidence. reasonably foreseeable that issuance, denial, or renewal of (b) Except as provided in subdivision (a), in all appeals, the license could: the panel shall enter an order either affirming or reversing (1) Allow unreasonable restraints on competition by the decision of the bureau or licensing authority. When the creation or maintenance of unlawful monopoly power, order reverses the decision of the bureau or licensing (2) Perpetuate the presence of an illegal market for authority, the board may direct the reconsideration of the marijuana or marijuana products in the state or out of the matter in the light of its order and may direct the bureau state; or licensing authority to take such further action as is specially enjoined upon it by law, but the order shall not (3) Encourage underage use or adult abuse of marijuana limit or control in any way the discretion vested by law in or marijuana products, or illegal diversion of marijuana or the bureau or licensing authority. marijuana products out of the state; 25045. Orders of the panel shall be subject to judicial (4) Result in an excessive concentration of licensees in a review under Section 1094.5 of the Code of Civil Procedure given city, county, or both; upon petition by the bureau or licensing authority or any (5) Present an unreasonable risk of minors being exposed party aggrieved by such order. to marijuana or marijuana products; or CHAPTER 5. LICENSING (6) Result in violations of any environmental protection 26050. (a) The license classification pursuant to this laws. division shall, at a minimum, be as follows: (b) A licensing authority may deny a license or renewal of (1) Type 1—Cultivation; Specialty outdoor; Small. a license based upon the considerations in subdivision(a). (2) Type IA—Cultivation; Specialty indoor; Small. (c) For purposes of this section, "excessive concentration" means when the premises fora retail license,microbusiness (3) Type 1 B—Cultivation; Specialty mixed-light; Small. license, or a license issued under Section 26070.5 is (4) Type 2—Cultivation; Outdoor Small. located in an area where either of the following conditions (5) Type 2/1—Cultivation; Indoor, Small. exist. (6) Type 28—Cultivation; Mixed-light; Small. (1) The ratio of a licensee to population in the census • tract or census division in which the applicant premises (7) Type 3—Cultivation; Outdoor, Medium. are located exceeds the ratio of licensees to population in Text of Proposed Laws 1 187 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED • the county in which the applicant premises are located, (c) Except as provided in subdivision(b),a person or entity unless denial of the application would unduly limit the may apply for and be issued more than one license under development of the legal market so as to perpetuate the this division. illegal market for marijuana or marijuana products. 26054. (a) A licensee shall not also be licensed as a (2) The ratio of retail licenses, microbusiness licenses, or retailer of alcoholic beverages under Division 9 licenses under Section 26070.5 to population in the (commencing with Section 23000)or of tobacco products. census tract, division or jurisdiction exceeds that allowable (b) No licensee under this division shall be located within by local ordinance adopted under Section 26200. a 600-foot radius of a school providing instruction in 26052. (a) No licensee shall perform any of the following kindergarten or any grades 1 through 12, day care center, acts, or permit any such acts to be performed by any or youth center that is in existence at the time the license employee, agent, or contractor of such licensee: is issued, unless a licensing authority or a local jurisdiction (1) Make any contract in restraint of trade in violation of specifies a different radius. The distance specified in this Section 15600; section shall be measured in the same manner as provided (2) Form a trust or other prohibited organization in in subdivision(c)of Section 11362.768 of the Health and Safety Code unless otherwise provided by law restraint of trade in violation of Section 16720; (3) Make a sale or contract for the sale of marijuana or It shall f lawful under state and local law, and shall no marijuana products, or to fix a price charged therefor, or not be a violation state or local law, for a business discount from,or rebate upon,such price,on the condition, engaged in the manufacture of marijuana accessories small agreement or understanding that the consumer or Possess, transport, purchase or otherwise obtain small purchaser thereof shall not use at deal is the goods, amounts of marijuana or marijuana products as necessary merchandise, machine supplies, commodities, s, to conduct research and development related to such 0 pp marijuana accessories, provided such marijuana and services of a competitor or competitors of such seller, marijuana products are obtained from a person or entity where the effect of such sale, contract, condition, licensed under this division or Chapter 3.5 (commencing agreement or understanding may be to substantially lessen with Section 19300)of Division 8 permitted to provide or competition or tend to create a monopoly in any line of deliver such marijuana or marijuana products. trade or commerce; (4) Sell any marijuana or marijuana products at less than 26054.1. (a) No licensing authority shall issue or renew cost for the purpose of injuring competitors, destroying a license to any person that cannot demonstrate continuous competition, or misleading or deceiving purchasers or California residency from or before January 1, 2015. In prospective purchasers; the case of an applicant or licensee that is an entity, the entity shall not be considered a resident if any person (5) Discriminate between different sections,communities, controlling the entity cannot demonstrate continuous or cities or portions thereof, or between different locations California residency from and before January 1, 2015. in such sections, communities, cities or portions thereof in (b) Subdivision (a) shall cease to be operative on this state, by selling or furnishing marijuana or marijuana P products at a lower price in one section, community, or city December 31, 2019, unless reenacted prior thereto by the or any portion thereof, or in one location in such section, Legislature. community, or city or any portion thereof, than in another, 26054.2. (a) A licensing authority shall give priority in for the purpose of injuring competitors or destroying issuing licenses under this division to applicants that can competition; or demonstrate to the authority's satisfaction that the (6) Sell any marijuana or marijuana products at less than applicant operated in compliance with the Compassionate the cost thereof to such vendor, or to give away any article Use Act and its implementing laws before September 1, or product for the purpose of injuring competitors or 2016,or currently operates in compliance with Chapter 3.5 destroying competition. (commencing with Section 19300)of Division 8. (b) Any person who, either as director, officer or agent of (b) The bureau shall request that local jurisdictions any firm or corporation, or as agent of any person, violates identify for the bureau potential applicants for licensure the provisions of this chapter, assists or aids, directly or based on the applicants' prior operation in the local indirectly, in such violation is responsible therefor equally jurisdiction in compliance with state law, including the with the person, firm or corporation for which such person Compassionate Use Act and its implementing laws, and acts. any applicable local laws. The bureau shall make the (c) A licensing authority may enforce this section by requested information available to licensing authorities. appropriate regulation. (c) In addition to or in lieu of the information described in (d) Any person or trade association may bring an action to subdivision(b),an applicant may furnish other evidence to enjoin and restrain any violation of this section for the demonstrate operation in compliance with the recovery of damages. Compassionate Use Act or Chapter 3.5(commencing with Section 19300) of Division 8. The bureau and licensing 26053. (a) The bureau and licensing authorities may authorities may accept such evidence to demonstrate issue licenses under this division to persons or entities eligibility for the priority provided for in subdivision (a). that hold licenses under Chapter 3.5 (commencing with (d) This section shall cease to be operative on December3l, Section 19300)of Division 8. 2019, unless otherwise provided by law. (b) Notwithstanding subdivision(a),a person or entity that 26055. (a) Licensing authorities may issue state holds a state testing license under this division or licenses only to qualified applicants. Chapter 3.5(commencing with Section 19300)of Division 8 is prohibited from licensure for any other activity, except (b) Revocation of a state license issued under this division testing, as authorized under this division. shall terminate the ability of the licensee to operate within 188 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED California until the licensing authority reinstates or reissues individual square footage of separate cultivation areas, if the state license. any. (c) Separate licenses shall be issued for each of the 25056.5. The bureau shall devise protocols that each premises of any licensee having more than one location, licensing authority shall implement to ensure compliance except as otherwise authorized by law or regulation. with state laws and regulations related to environmental (d) After issuance or transfer of a license, no licensee impacts, natural resource protection, water quality, water shall change or alter the premises in a manner which supply, hazardous materials, and pesticide use in materially or substantially alters the premises, the usage of accordance with regulations, including but not limited to, the premises, or the mode or character of business the California Environmental Quality Act (Division 13 operation conducted from the premises, from the plan (commencing with Section 21000)of the Public Resources contained in the diagram on file with the application, Code), the California Endangered Species Act (Chapter unless and until prior written assent of the licensing 1.5(commencing with Section 2050)of Division 3 of the authority or bureau has been obtained. For purposes of this Fish and Game Code), lake or streambed alteration section, material or substantial physical changes of the agreements (Chapter 6 (commencing with Section 1600) premises, or in the usage of the premises, shall include, of Division 2 of the Fish and Game Code), the Clean Water but not be limited to, a substantial increase or decrease in Act (33 U.S.C. Sec. 1251 et seq.), the Porter-Cologne the total area of the licensed premises previously Water Quality Control Act (Division 7 (commencing with diagrammed, or any other physical modification resulting Section of the Water Code), timber production in substantial change in the mode or character of business zones, wastewater discharge requirements, and any permit operation. or right necessary to divert water. 2 (e) Licensing authorities shall not approve an application (a) The licensing authority shall deny an for a state license under this division if approval of the application if either the applicant, or the premises for pp which a state license is applied, do not qualify for licensure state license will violate the provisions of any local under this division. ordinance or regulation adopted in accordance with Section 26200. (b) The licensing authority may deny the application for .. licensure or renewal of a state license if any of the following 26056. An applicant for any type of state license issued conditions apply: pursuant to this division shall comply with the same requirements as set forth in Section 19322 unless (1) Failure to comply with the provisions of this division, otherwise provided by law, including electronic submission any rule or regulation adopted pursuant to this division, or of fingerprint images, and any other requirements imposed any requirement imposed to protect natural resources, by law or a licensing authority, except as follows: including, but not limited to, protections for instream flow (a) Notwithstanding paragraph (2) of subdivision (a) of and water quality. Section 19322, an applicant need not provide (2) Conduct that constitutes grounds for denial of licensure documentation that the applicant has obtained a license, under Chapter 2 (commencing with Section 480) of permit or other authorization to operate from the local Division 1.5, except as otherwise specified in this section jurisdiction in which the applicant seeks to operate; and Section 26059. (b) An application for a license under this division shall (3) Failure to provide information required by the licensing include evidence that the proposed location meets the authority. restriction in subdivision (b)of Section 26054;and (4) The applicant or licensee has been convicted of an (c) For applicants seeking licensure to cultivate,distribute, offense that is substantially related to the qualifications, or manufacture nonmedical marijuana or marijuana functions, or duties of the business or profession for which products, the application shall also include a detailed the application is made, except that if the licensing description of the applicant's operating procedures for all authority determines that the applicant or licensee is of the following, as required by the licensing authority: otherwise suitable to be issued a license, and granting the license would not compromise public safety, the licensing (1) Cultivation. authority shall conduct a thorough review of the nature of (2) Extraction and infusion methods. the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the (3) The transportation process. suitability of the applicant or licensee to be issued a (4) The inventory process. license based on the evidence found through the review. In (5) Quality control procedures. determining which offenses are substantially related to the qualifications, functions, or duties of the business or (6) The source or sources of water the applicant will use profession for which the application is made, the licensing for the licensed activities, including a certification that the authority shall include, but not be limited to, the following: applicant may use that water legally under state law. (A) A violent felony conviction, as specified in (d) The applicant shall provide a complete detailed subdivision (c)of Section 667.5 of the Penal Code. diagram of the proposed premises wherein the license (6) A serious felony conviction, as specified in privileges will be exercised, with sufficient particularity to subdivision (c)of Section 1192.7 of the Penal Code. enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, (C) A felony conviction involving fraud, deceit, or interior partitions, walls, rooms, and common or shared embezzlement. entryways, and include a brief statement or description of (D) A felony conviction for hiring, employing, or using a the principal activity to be conducted therein, and, for minor in transporting, carrying, selling, giving away, licenses permitting cultivation, measurements of the preparing for sale, or peddling,any controlled substance to planned canopy including aggregate square footage and a minor, or selling, offering to sell, furnishing, offering to Text of Proposed Laws 1 189 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED furnish, administering, or giving any controlled substance Board to ensure that individual and cumulative effects of to a minor. water diversion and discharge associated with cultivation (E) A felony conviction for drug trafficking with do not affect the instream flows needed for fish spawning, enhancements pursuant to Section 11370.4 or 11379.8. migration, and rearing, and the flows needed to maintain natural flow variability, and to otherwise protect fish, (5) Except as provided in subparagraphs (D) and (E) of y. paragraph(4)and notwithstanding Chapter 2(commencing wildlife, fish and wildlife habitat, and water quality. with Section 480)of Division 1.5,a prior conviction, where (d) The regulations promulgated by the Department of the sentence,includingany term ofprobation,incarceration, Food and Agriculture under this division shall, at a or supervised release, is completed, for possession of, minimum, address in relation to commercial marijuana possession for sale, sale, manufacture, transportation, or activity, the same matters described in subdivision (e) of cultivation of a controlled substance is not considered Section 19332. substantially related, and shall not be the sole ground for (e) The Department of Pesticide Regulation,in consultation denial of a license. Conviction for any controlled substance with the State Water Resources Control Board, shall felony subsequent to licensure shall be grounds for promulgate regulations that require that the application of revocation of a license or denial of the renewal of a license. pesticides or other pest control in connection with the (6) The applicant, or any of its officers, directors, or indoor, outdoor, or mixed light cultivation of marijuana owners,has been subject to fines or penalties for cultivation meets standards equivalent to Division 6 (commencing or production of a controlled substance on public or private with Section 11401) of the Food and Agricultural Code lands pursuant to Section 12025 or 12025.1 of the Fish and its implementing regulations. and Game Code. 26061. (a) The state cultivator license types to be (7) The applicant, or any of its officers, directors, or issued by the Department of Food and Agriculture under owners, has been sanctioned by a licensing authority or a this division shall include Type 1, Type IA, Type 1 B, Type city,county,or city and county for unauthorized commercial 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, marijuana activities or commercial medical cannabis and Type 5, Type 5A, and Type 5B unless otherwise •' activities, has had a license revoked under this division or provided by law. Chapter 3.5(commencing with Section 19300)of Division 8 p (b) Except as otherwise provided by law, Type 1, Type IA, the three years immediately preceding the date the Type 1 B, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type application is filed with the licensing authority, or has been 3B and Type 4 licenses shall provide for the cultivation of sanctioned under Section 12025 or 12025.1 of the Fish yP and Game Code. marijuana in the same amount as the equivalent license (8) Failure to obtain and maintain a valid seller's p ermit type for cultivation of medical cannabis as specified in required pursuant to Part 1 (commencing with subdivision (g)of Section 19332. Section 6001) of Division 2 of the Revenue and Taxation (c) Except as otherwise provided by law: Code. (1) Type 5, or `outdoor," means for outdoor cultivation (9) Any other condition specified in law using no artificial lighting greater than one acre, inclusive, 26058. Upon the denial of any application for a license, of total canopy size on one premises. the licensing authority shall notify the applicant in writing. (2) Type 5A, or "indoor," means for indoor cultivation 26059. An applicant shall not be denied a state license using exclusively artificial lighting greater than 22,000 if the denial is based solely on any of the following. square feet, inclusive,of total canopy size on one premises. (a) A conviction or act that is substantially related to the (3) Type 5B, or "mixed-light,"means for cultivation using qualifications, functions, or duties of the business or a combination of natural and supplemental artificial profession for which the application is made for which the lighting at a maximum threshold to be determined by the applicant or licensee has obtained a certificate of licensing authority, greater than 22,000 square feet, rehabilitation pursuant to Chapter 3.5 (commencing with inclusive, of total canopy size on one premises. Section 4852.01)of Title 6 of Part 3 of the Penal Code. (d) No Type 5, Type 5A, or Type 5B cultivation licenses (b) A conviction that was subsequently dismissed pursuant may be issued before January 1, 2023. to Section 1203.4, 1203.4a, or 1203.41 of the Penal (e) Commencing on January 1, 2023, a Type 5, Type 5A, Code or any other provision allowing for dismissal of a or Type 5B licensee may apply for and hold a Type 6 or conviction. Type 7 license and apply for and hold a Type 10 license.A CHAPTER 6. LICENSED CULTIVATION SITES Type 5, Type 5A, or Type 5B licensee shall not be eligible 26060. (a) Regulations issued by the Department of to apply for or hold a Type 8, Type 11, or Type 12 license. Food and Agriculture governing the licensing of indoor, 26062. The Department of Food and Agriculture, in outdoor, and mixed-light cultivation sites shall apply to conjunction with the bureau, shall establish a certified licensed cultivators under this division. organic designation and organic certification program for (b) Standards developed by the Department of Pesticide marijuana and marijuana products in the same manner as Regulation, in consultation with the Department of Food Provided in Section 19332.5. and Agriculture, for the use of pesticides in cultivation, 26063. (a) The bureau shall establish standards for and maximum tolerances for pesticides and other foreign recognition of a particular appellation of origin applicable object residue in harvested cannabis shall apply to licensed to marijuana grown or cultivated in a certain geographical cultivators under this division. area in California. (c) The Department of Food and Agriculture shall include (b) Marijuana shall not be marketed, labeled, or sold as conditions in each license requested by the Department of grown in a California county when the marijuana was not Fish and Wildlife and the State Water Resources Control grown in that county. 190 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED (c) The name of a California county shall not be used in (B) Information associated with the assigned unique • the labeling,marketing,or packaging of marijuana products identifier and licensee shall be included in the trace and unless the marijuana contained in the product was grown track program specified in Section 26170. in that county. (C) The department may charge a fee to cover the 26064. Each licensed cultivator shall ensure that the reasonable costs of issuing the unique identifier and licensed premises do not pose an unreasonable risk of fire monitoring, tracking, and inspecting each marijuana plant. or combustion. Each cultivator shall ensure that all (D) The department may promulgate regulations to lighting, wiring, electrical and mechanical devices, or implement this section. other relevant property is carefully maintained to avoid unreasonable or dangerous risk to the property or others. (3) The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit 26065. An employee engaged in the cultivation of illegal diversion of unique identifiers to unlicensed persons. marijuana under this division shall be subject to Wage (d) Unique identifiers and associated identifying Order No. 4-2001 of the Industrial Welfare Commission. information administered by local jurisdictions shall 26066. Indoor and outdoor marijuana cultivation by adhere to the requirements set by the department and be persons and entities licensed under this division shall be the equivalent to those administered by the department. conducted in accordance with state and local laws related (e) (1) This section does not apply to the cultivation of to land conversion,grading, electricity usage, water usage, marijuana in accordance with Section 113 cultivation of the water quality, woodland and riparian habitat protection,agricultural discharges, and similar matters. State Health and Safety Code or the Compassionate Use Act. agencies, including, but not limited to, the State Board of (2) Subdivision (b) does not apply to persons or entities Forestry and Fire Protection, the Department of Fish and licensed under either paragraph (3) of subdivision (a) of Wildlife, the State Water Resources Control Board, the Section 26070 or subdivision (b)of Section 26070.5. California regional water quality control boards, and (f) "Department" for purposes of this section means the traditional state law enforcement agencies, shall address Department of Food and Agriculture. environmental impacts of marijuana cultivation and shall CHAPTER 7. RETAILERS AND DISTRIBUTORS coordinate when appropriate with cities and counties and their law enforcement agencies in enforcement efforts. 26070. Retailers and Distributors. 26067. (a) The Department of Food and Agriculture (a) State licenses to be issued by the Department of shall establish a Marijuana Cultivation Program to be Consumer Affairs are as follows: administered by the Secretary of Food and Agriculture. (1) "Retailer,"for the retail sale and delivery of marijuana The secretary shall administer this section as it pertains to or marijuana products to customers. the cultivation of marijuana. For purposes of this division, (2) "Distributor," for the distribution of marijuana and marijuana is an agricultural product. marijuana products.A distributor licensee shall be bonded (b) A person or entity shall not cultivate marijuana without and insured at a minimum level established by the first obtaining a state license issued by the department licensing authority. pursuant to this section. (c) (1) The department, in consultation with, but not an rea less thass," for the cultivation n marijuana on P an area less than 10,000 square feet and to act as a limited to, the bureau, the State Water Resources Control licensed distributor, Level 1 manufacturer, and retailer Board, and the Department of Fish and Wildlife, shall under this division, provided such licensee complies with implement a unique identification program for marijuana. all requirements imposed by this division on licensed In implementing the program, the department shall cultivators, distributors, Level 1 manufacturers, and consider issues including, but not limited to, water use retailers to the extent the licensee engages in such and environmental impacts. In implementing the program, activities. Microbusiness licenses that authorize cultivation the department shall ensure that: of marijuana shall include conditions requested by the (A) Individual and cumulative effects of water diversion Department of Fish and Wildlife and the State Water Ind discharge associated with cultivation do not affect the Resources Control Board to ensure that individual and instream flows needed for fish spawning, migration, and cumulative effects of water diversion and discharge rearing, and the flows needed to maintain natural flow associated with cultivation do not affect the instream flows variability. If a watershed cannot support additional needed for fish spawning, migration, and rearing, and the cultivation, no new plant identifiers will be issued for that flow needed to maintain flow variability, and otherwise watershed, protect fish, wildlife, fish and wildlife habitat, and water quality. (B) Cultivation will not negatively impact springs, riparian (b) The bureau shall establish minimum security and wetlands and aquatic habitats. transportation safety requirements for the commercial (2) The department shall establish a program for the distribution and delivery of marijuana and marijuana identification of permitted marijuana plants at a cultivation products. The transportation safety standards established site during the cultivation period. A unique identifier shall by the bureau shall include,but not be limited to,minimum be issued for each marijuana plant. The department shall standards governing the types of vehicles in which ensure that unique identifiers are issued as quickly as marijuana and marijuana products may be distributed and possible to ensure the implementation of this division. The delivered and minimum qualifications for persons eligible unique identifier shall be attached at the base of each to operate such vehicles. plant or as otherwise required by law or regulation. (c) Licensed retailers and microbusinesses, and licensed . (A) Unique identifiers will only be issued to those persons nonprofits under Section 26070.5, shall implement appropriately licensed by this section. security measures reasonably designed to prevent Text of Proposed Laws 1 191 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED unauthorized entrance into areas containing marijuana or division is not feasible, or if the bureau determines such marijuana products and theft of marijuana or marijuana licenses are feasible, after the date a licensing agency products from the premises. These security measures shall commences issuing state nonprofit licenses. include, but not be limited to, all of the following: (2) If the bureau determines such licenses are feasible, no (1) Prohibiting individuals from remaining on the temporary license issued under subdivision (b) shall be licensee's premises if they are not engaging in activity renewed or extended after the date on which a licensing expressly related to the operations of the dispensary. agency commences issuing state nonprofit licenses. (2) Establishing limited access areas accessible only to (3) If the bureau determines that creation of nonprofit authorized personnel. licenses under this division is not feasible, the bureau (3) Other than limited amounts of marijuana used for shall provide notice of this determination to all local display purposes, samples, or immediate sale, storing all jurisdictions u isd ictions(bhat have issued he bureau may, pop ry licenses discretion, permit under finished marijuana and marijuana products in a secured any such local jurisdiction to renew or extend on an annual and locked room,safe, or vault, and in a manner reasonably basis any temporary license previously issued under designed to prevent diversion, theft, and loss. subdivision (b). 26070.5. (a) The bureau shall, by January 1, 2018, CHAPTER 8. DISTRIBUTION AND TRANSPORT investigate the feasibility of creating one or more classifications of nonprofit licenses under this section. The 26080. (a) This division shall not be construed to feasibility determination shall be made in consultation authorize or permit a licensee to transport or distribute, or with the relevant licensing agencies and representatives of cause to be transported or distributed, marijuana or local jurisdictions which issue temporary licenses pursuant marijuana products outside the state, unless authorized by to subdivision (b). The bureau shall consider factors federal law including, but not limited to, the following. (b) A local jurisdiction shall not prevent transportation of (1) Should nonprofit licensees be exempted from any or marijuana or marijuana products on public roads by a .. all state taxes, licensing fees and regulatory provisions licensee transporting marijuana or marijuana products in applicable to other licenses in this division? compliance with this division. (2) Should funding incentives be created to encourage CHAPTER 9. DELIVERY others licensed under this division to provide professional 26090. (a) Deliveries, as defined in this division, may services at reduced or no cost to nonprofit licensees? only be made by a licensed retailer or microbusiness, or a (3) Should nonprofit licenses be limited to, or prioritize licensed nonprofit under Section 26070.5. those, entities previously operating on a not-for-profit basis (b) A customer requesting delivery shall maintain a primarily providing whole-plant marijuana and marijuana physical or electronic copy of the delivery request and products and a diversity of marijuana strains and seed shall make it available upon request by the licensing stock to low-income persons? authority and law enforcement officers. (b) Any local jurisdiction may issue temporary local (c) A local jurisdiction shall not prevent delivery of licenses to nonprofit entities primarily providing whole- marijuana or marijuana products on public roads by a plant marijuana and marijuana products and a diversity of licensee acting in compliance with this division and local marijuana strains and seed stock to low-income persons so law as adopted under Section 26200. long as the local jurisdiction: CHAPTER 10. MANUFACTURERS AND TESTING LABORATORIES (1) Confirms the license applicants status as a nonprofit 26100. The State Department of Public Health shall entity registered with the California Attorney General's promulgate regulations governing the licensing of Registry of Charitable Trusts and that the applicant is in marijuana manufacturers and testing laboratories.Licenses good standing with all state requirements governing to be issued are as follows: nonprofit entities; (2) Licenses and regulates any such entity to protect (a) "Manufacturing Level 1," for sites that manufacture public health and safety, and so as to require compliance marijuana products using nonvolatile solvents, or no with all environmental requirements in this division; solvents. (3) Provides notice to the bureau of any such local licenses (b) "Manufacturing Level 2," for sites that manufacture marijuana products using volatile solvents. issued, including the name and location of any such licensed entity and all local regulations governing the (c) "Testing," for testing of marijuana and marijuana licensed entity's operation, and; products. Testing licensees shall have their facilities or (4) Certifies to the bureau that any such licensed entity devices licensed according to regulations set forth by the will not generate annual gross revenues in excess of two department. A testing licensee shall not hold a license in million dollars ($2,000,000). another license category of this division and shall not own or have ownership interest in a non-testing facility licensed (c) Temporary local licenses authorized under pursuant to this division. subdivision(b)shall expire after 12 months unless renewed (d) For purposes of this section, "volatile solvents"shall by the local jurisdiction. have the same meaning as in subdivision (d) of (d) The bureau may impose reasonable additional Section 11362.3 of the Health and Safety Code unless requirements on the local licenses authorized under otherwise provided by law or regulation. subdivision (b). 26101. (a) Except as otherwise provided by law, no (e) (1) No new temporary local licenses shall be issued marijuana or marijuana products may be sold pursuant to pursuant to this section after the date the bureau a license provided for under this division unless a determines that creation of nonprofit licenses under this representative sample of such marijuana or marijuana 192 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED product has been tested by a certified testing service to (b) The State Department of Public Health shall develop determine: procedures to: (1) Whether the chemical profile of the sample conforms (1) Ensure that testing of marijuana and marijuana to the labeled content of compounds, including, but not products occurs prior to distribution to retailers, limited to, all of the following: microbusinesses, or nonprofits licensed under (A) Tetrahydrocannabinol(THC). Section 26070.5; (B) Tetrahydrocannabinolic Acid(THCA). (2) Specify how often licensees shall test marijuana and marijuana products, and that the cost of testing marijuana (C) Cannabidiol(CBD). shall be borne by the licensed cultivators and the cost of (D) Cannabidiolic Acid(CBDA). testing marijuana products shall be borne by the licensed (E) The terpenes described in the most current version of manufacturer, and that the costs of testing marijuana and the cannabis inflorescence monograph published by the marijuana products shall be borne by a nonprofit licensed American Herbal Pharmacopoeia. under Section 26070.5,and (F) Cannabigerol(CBG). (3) Require destruction of harvested batches whose testing samples indicate noncompliance with health and (G) Cannabinol(CBN), safety standards promulgated by the State Department of (2) That the presence of contaminants does not exceed Public Health, unless remedial measures can bring the the levels in the most current version of the American marijuana or marijuana products into compliance with Herbal Pharmacopoeia monograph. For purposes of this quality assurance standards as promulgated by the State paragraph, contaminants includes, but is not limited to, all Department of Public Health. of the following: 26105. Manufacturing Level 2 licensees shall enact (A) Residual solvent or processing chemicals, including sufficient methods or procedures to capture or otherwise explosive gases, such as Butane, propane, 02 or H2, and limit risk of explosion, combustion, or any other poisons, toxins, or carcinogens, such as Methanol, ISO- unreasonably dangerous risk to public safety created by propyl Alcohol, Methylene Chloride, Acetone, Benzene, volatile solvents. The State Department of Public Health • Toluene, and Tri-ch/oro-ethylene. shall establish minimum standards concerning such (B) Foreign material, including, but not limited to, hair, methods and procedures for Level 2 licensees. insects, or similar or related adulterant. 26106. Standards for the production and labeling of all marijuana products developed by the State Department of (C) Microbiological impurity, including total aerobic Public Health shall apply to licensed manufacturers and microbial count, total yeast mold count, P. aeruginosa, microbusinesses, and nonprofits licensed under aspergillus spp., s. aureus, af/atoxin B1, B2, Gl, or G2, or Section 26070.5 unless otherwise specified by the State ochratoxin A. Department of Public Health. (b) Residual levels of volatile organic compounds shall CHAPTER 11. QUALITY ASSURANCE, INSPECTION, AND TESTING satisfy standards of the cannabis inflorescence monograph set by the United States Pharmacopeia (U.S.P. 26110. (a) All marijuana and marijuana products shall Chapter 467). be subject to quality assurance, inspection, and testing. (c) The testing required by paragraph (a) shall be (b) All marijuana and marijuana products shall undergo performed in a manner consistent with general requirements quality assurance, inspection, and testing in the same for the competence of testing and calibrations activities, manner as provided in Section 19326, except as otherwise including sampling, using standard methods established provided in this division or by law. by the International Organization for Standardization, CHAPTER 12. PACKAGING AND LABELING specifically ISO/IEC 17020 and ISO/IEC 17025 to test 26120. (a) Prior to deliveryorsa/eata retailer,marijuana marijuana and marijuana products that are approved by an and accrediting body that is a signatory to the International marijuana products shall be labeled and placed in a reseals child resistant package. Laboratory Accreditation Cooperation Mutual Recognition Agreement. (b) Packages and labels shall not be made to be attractive (d) Any pre-sale inspection, testing transfer, or to children. transportation of marijuana products pursuant to this (c) All marijuana and marijuana product labels and inserts section shall conform to a specified chain of custody shall include the following information prominently protocol and any other requirements imposed under this displayed in a clear and legible fashion in accordance with division. the requirements, including font size, prescribed by the 26102. A licensed testing service shall not handle, test, bureau or the State Department of Public Health: or analyze marijuana or marijuana products unless the (1) Manufacture date and source. licensed testing laboratory meets the requirements of 0 The following statements, in bold print: Section 19343 or unless otherwise provided by law. 26103. A licensed testing service shall issue a certificate (A) For marijuana: "GOVERNMENT WARNING: THIS PACKAGE CONTAINS MARIJUANA, A SCHEDULE I of analysis for each lot, with supporting data, to report the CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF same information required in Section 19344 or unless otherwise provided by law. CHILDREN AND ANIMALS. MARIJUANA MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS 26104. (a) A licensed testing service shall, in performing OF AGE OR OLDER UNLESS THE PERSON IS A activities concerning marijuana and marijuana products, QUALIFIED PATIENT. MARIJUANA USE WHILE comply with the requirements and restrictions set forth in PREGNANT OR BREASTFEEDING MAY BE HARMFUL. applicable law and regulations. CONSUMPTION OF MARIJUANA IMPAIRS YOUR ABILITY Text of Proposed Laws 1 193 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED TO DRIVE AND OPERATE MACHINERY. PLEASE USE (4) Homogenized to ensure uniform disbursement of EXTREME CAUTION." cannabinoids throughout the product. (B) For marijuana products: "GOVERNMENT WARNING: (5) Manufactured and sold under sanitation standards THIS PRODUCT CONTAINS MARIJUANA, A SCHEDULE I established by the State Department of Public Health, in CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF consultation with the bureau, for preparation, storage, CHILDREN AND ANIMALS. MARIJUANA PRODUCTS MAY handling and sale of food products. ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 (6) Provided to customers with sufficient information to YEARS OF AGE OR OLDER UNLESS THE PERSON IS A enable the informed consumption of such product, QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF including the potential effects of the marijuana product MARIJUANA PRODUCTS MAY BE DELAYED UP TO TWO and directions as to how to consume the marijuana HOURS. MARIJUANA USE WHILE PREGNANT OR product, as necessary. BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF MARIJUANA PRODUCTS IMPAIRS YOUR ABILITY TO I.n Marijuana, including concentrated cannabis, included DRIVE AND OPERATE MACHINERY. PLEASE USE in a marijuana product manufactured in compliance with EXTREME CAUTION." law is not considered an adulterant under state law. (3) For packages containing only dried flower, the net CHAPTER 14. PROTECTION OF MINORS weight of marijuana in the package. 26140. (a) No licensee shall: (4) Identification of the source and date of cultivation, the (1) Sell marijuana or marijuana products to persons under type of marijuana or marijuana product and the date of 21 years of age. manufacturing and packaging. (2) Allow any person under 21 years of age on its premises. (5) The appellation of origin, if any. (3) Employ or retain persons under 21 years of age. (6) List of pharmacologically active ingredients, including, (4) Sell or transfer marijuana or marijuana products unless but not limited to, tetrahydrocannabinol(THC), cannabidiol the person to whom the marijuana or marijuana product is •' (CBD), and other cannabinoid content, the THC and other to be sold first presents documentation which reasonably cannabinoid amount in milligrams per serving, servings appears to be a valid government-issued identification per package, and the THC and other cannabinoid amount card showing that the person is 21 years of age or older. in milligrams for the package total, and the potency of the (b) Persons under 21 years of age may be used by peace marijuana or marijuana product by reference to the amount officers in the enforcement of this division and to apprehend of tetrahydrocannabinol and cannabidiol in each serving. licensees, or employees or agents of licensees, or other (7) For marijuana products, a list of all ingredients and persons who sell or furnish marijuana to minors. disclosure of nutritional information in the same manner Notwithstanding any provision of law, any person under 21 as the federal nutritional labeling requirements in years of age who purchases or attempts to purchase any Section 101.9 of Title 21 of the Code of Federal marijuana while under the direction of a peace officer is Regulations. immune from prosecution for that purchase or attempt to (8) A list of any solvents,nonorganic pesticides,herbicides, purchase marijuana. Guidelines with respect to the use of and fertilizers that were used in the cultivation,production, persons under 21 years of age as decoys shall be adopted and manufacture of such marijuana or marijuana product. and published by the bureau in accordance with the rulemaking portion of the Administrative Procedure Act (9) A warning if nuts or other known allergens are used. (Chapter 3.5 (commencing with Section 11340)of Part 1 (10) Information associated with the unique identifier of Division 3 of Title 2 of the Government Code). issued by the Department of Food and Agriculture. (c) Notwithstanding subdivision (a), a licensee that is also (11) Any other requirement set by the bureau or the State a dispensary licensed under Chapter 3.5 (commencing Department of Public Health. with Section 19300)of Division 8 may: (d) Only generic food names may be used to describe the (1) Allow on the premises any person 18 years of age or ingredients in edible marijuana products. older who possesses a valid identification card under Section 11362.71 of the Health and Safety Code and a (e) In the event the bureau determines that marijuana is valid government-issued identification card; no longer a schedule I controlled substance under federal law, the label prescribed in subdivision (c)shall no longer (2) Sell marijuana, marijuana products, and marijuana require a statement that marijuana is a schedule I accessories to a person 18 years of age or older who controlled substance. possesses a valid identification card under Section 11362.71 of the Health and Safety Code and a CHAPTER 13. MARIJUANA PRODUCTS valid government-issued identification card. 26130. (a) Marijuana products shall be: CHAPTER 15. ADVERTISING AND MARKETING RESTRICTIONS (1) Not designed to be appealing to children or easily 26150. For purposes of this chapter: confused with commercially sold candy or foods that do (a) "Advertise"means the publication or dissemination of not contain marijuana. an advertisement. (2) Produced and sold with a standardized dosage of (b) "Advertisement" includes any written or verbal cannabinoids not to exceed ten (10) milligrams statement, illustration, or depiction which is calculated to tetrahydrocannabinol(THC)per serving. induce sales of marijuana or marijuana products, including (3) Delineated or scored into standardized serving sizes if any written, printed, graphic, or other material, billboard, the marijuana product contains more than one serving and sign, or other outdoor display, public transit card, other is an edible marijuana product in solid form. periodical literature, publication, or in a radio or television 194 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED broadcast, or in any other media; except that such term of the advertised product bears an appellation-of origin, shall not include: and such appellation of origin appears in the advertisement; (1) Any label affixed to any marijuana or marijuana (d) Advertise or market on a billboard or similar advertising products, or any individual covering, carton, or other device located on an Interstate Highway or State Highway wrapper of such container that constitutes a part of the which crosses the border of any other state; labeling under provisions of this division. (e) Advertise or market marijuana or marijuana products 0 Any editorial or other reading material (e.g., news in a manner intended to encourage persons under the age release) in any periodical or publication or newspaper for of 21 years to consume marijuana or marijuana products; the publication of which no money or valuable consideration (f) Publish or disseminate advertising or marketing is paid or promised, directly or indirectly, by any licensee, containing symbols, language, music, gestures, cartoon and which is not written by or at the direction of the characters or other content elements known to appeal licensee. primarily to persons below the legal age of consumption;or (c) "Advertising sign"is any sign,poster,display,billboard, (g) Advertise or market marijuana or marijuana products or any other stationary orpermanently affixed advertisement on an advertising sign within 1,000 feet of a day care promoting the sale of marijuana or marijuana products center, school providing instruction in kindergarten or any which are not cultivated, manufactured, distributed, or grades 1 through 12, playground, or youth center. sold on the same lot. (d) "Health-related statement" means any statement 26153. No licensee shall give away any amount of related to health, and includes statements of a curative or marijuana or marijuana products, or any marijuana therapeutic nature that, expressly or by implication, accessories, as part of a business promotion or other suggest a relationship between the consumption of commercial activity. marijuana or marijuana products and health benefits, or 26154. No licensee shall publish or disseminate effects on health. advertising or marketing containing any health-related (e) "Market"or "Marketing"means any act or process of statement that is untrue in any particular manner or tends promoting or selling marijuana or marijuana products, to create a misleading impression as to the effects on including, but not limited to, sponsorship of sporting health of marijuana consumption. events, point-of-sale advertising, and development of 26155. (a) The provisions of subdivision (g) of products specifically designed to appeal to certain Section 26152 shall not apply to the placement of demographics. advertising signs inside a licensed premises and which are 26151. (a) All advertisements and marketing shall not visible by normal unaided vision from a public place, accurately and legibly identify the licensee responsible for provided that such advertising signs do not advertise its content. marijuana or marijuana products in a manner intended to encourage persons under the age of 21 years to consume (b) Any advertising or marketing placed in broadcast, marijuana or marijuana products. cable, radio, print and digital communications shall only (b) This chapter does not apply to any noncommercial be displayed where at least 71.6 percent of the audience speech. is reasonably expected to be 21 years of age or older, as determined by reliable, up-to-date audience composition CHAPTER 16. RECORDS data. 26160. (a) A licensee shall keep accurate records of (c) Any advertising or marketing involving direct, commercial marijuana activity. individualized communication or dialogue controlled by (b) All records related to commercial marijuana activity as the licensee shall utilize a method of age affirmation to defined by the licensing authorities shall be maintained for verify that the recipient is 21 years of age or older prior to a minimum of seven years. engaging in such communication or dialogue controlled by the licensee. For purposes of this section, such method of (c) The bureau may examine the books and records of a age affirmation may include user confirmation, birth date licensee and inspect the premises of a licensee as the disclosure, or other similar registration method. licensing authority, or a state or local agency, deems necessary to perform its duties under this division. All (d) All advertising shall be truthful and appropriately inspections shall be conducted during standard business substantiated. hours of the licensed facility or at any other reasonable 26152. No licensee shall: time. (a) Advertise or market in a manner that is false or untrue (d) Licensees shall keep records identified by the licensing in any material particular, or that, irrespective of falsity, authorities on the premises of the location licensed. The directly, or by ambiguity, omission, or inference, or by the licensing authorities may make any examination of the addition of irrelevant, scientific or technical matter, tends records of any licensee. Licensees shall also provide and to create a misleading impression; deliver copies of documents to the licensing agency upon (b) Publish or disseminate advertising or marketing request. containing any statement concerning a brand or product (e) A licensee, or its agent or employee, that refuses, that is inconsistent with any statement on the labeling impedes, obstructs, or interferes with an inspection of the thereof; premises or records of the licensee pursuant to this section, (c) Publish or disseminate advertising or marketing has engaged in a violation of this division. containing any statement, design,device,or representation (f) If a licensee, or an agent or employee of a licensee, which tends to create the impression that the marijuana fails to maintain or provide the records required pursuant originated in a particular place or region, unless the label to this section, the licensee shall be subject to a citation Text of Proposed Laws 1 195 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED and fine of up to thirty thousand dollars ($30,000) per updates to third-party applications. The system should individual violation. provide a test environment for third-party applications to 26161. (a) Every sale or transport of marijuana or access that mirrors the production environment. marijuana products from one licensee to another licensee CHAPTER 18. LICENSE FEES must be recorded on a sales invoice or receipt. Sales 26180. Each licensing authority shall establish a scale invoices and receipts may be maintained electronically of application, licensing, and renewal fees, based upon the and must be filed in such manneras to be readilyaccessible cost of enforcing this division, as follows: for examination by employees of the bureau or Board of Equalization and shall not be commingled with invoices (a) Each licensing authority shall charge each licensee a covering other commodities. licensure and renewal fee, as applicable. The licensure (b) Each sales invoice required by subdivision (a) shall and renewal fee shall be calculated to cover the costs of include the name and address of the seller and shall administering this division. The licensure fee may vary include the following information: depending upon the varying costs associated with administering the various regulatory requirements of this (1) Name and address of the purchaser. division as they relate to the nature and scope of the (2) Date of sale and invoice number. different licensure activities, including, but not limited to, (3) Kind, quantity, size, and capacity of packages of the track and trace program required pursuant to marijuana or marijuana products sold. Section 26170, but shall not exceed the reasonable regulatory costs to the licensing authority. applied to the price as shown on the invoice.The cost to the purchaser, together with any discount (b) The total fees assessed pursuant to this division shall applied be set at an amount that will fairly and proportionately (5) The place from which transport of the marijuana or generate sufficient total revenue to fully cover the total marijuana product was made unless transport was made costs of administering this division. from the premises of the licensee. (c) All license fees shall be set on a scaled basis by the .' (6) Any other information specified by the bureau or the licensing authority, dependent on the size of the business. licensing authority. CHAPTER 17. TRACK AND TRACE SYSTEM (d) The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be 26170. (a) The Department of Food and Agriculture, in established in the Marijuana Control Fund. Moneys in the consultation with the bureau and the State Board of licensing authority fee accounts shall be used, upon Equalization, shall expand the track and trace program appropriation by the Legislature, by the designated provided for under Article 7.5 (commencing with Section licensing authority for the administration of this division. 19335) of Chapter 3.5 of Division 8 to include the 26181. The State Water Resources Control Board, the reporting of the movement of marijuana and marijuana Department of Fish and Wildlife, and other agencies may products throughout the distribution chain and provide, at establish fees to cover the costs of their marijuana a minimum, the same level of information for marijuana regulatory programs. and marijuana products as required to be reported for medical cannabis and medical cannabis products, and in CHAPTER 19. ANNUAL REPORTS; PERFORMANCE AUDIT addition, the amount of the cultivation tax due pursuant to 26190. Beginning on March 1, 2020, and on or before Part 14.5(commencing with Section 34010)of Division 2 March 1 of each year thereafter, each licensing authority of the Revenue and Taxation Code. The expanded track shall prepare and submit to the Legislature an annual and trace program shall include an electronic seed to sale report on the authority's activities concerning commercial software tracking system with data points for the different marijuana activities and post the report on the authority's stages of commercial activity including, but not limited to, Internet Web site. The report shall include, but not be cultivation, harvest, processing, distribution, inventory, limited to, the same type of information specified in and sale. Section 19353, and a detailed list of the petitions for (b) The department, in consultation with the bureau, shall regulatory relief or rulemaking changes received by the ensure that licensees under this division are allowed to use office from licensees requesting modifications of the third-party applications, programs and information enforcement of rules under this division. technology systems to comply with the requirements of the 26191. (a) Commencing January 1, 2019, and by expanded track and trace program described in January 1 of each year thereafter, the California State subdivision (a) to report the movement of marijuana and Auditor's Office shall conduct a performance audit of the marijuana products throughout the distribution chain and bureau's activities under this division, and shall report its communicate such information to licensing agencies as Y findings to the bureau and the Legislature b Jul 1 of that required by law. g g Y same year. The report shall include, but not be limited to, (c) Any software, database or other information technology the following: system utilized by the department to implement the expanded track and trace program shall support (1) The actual costs of the program. interoperability with third-party cannabis business software (2) The overall effectiveness of enforcement programs. applications and allow all licensee-facing system activities (3) Any report submitted pursuant to this section shall be to be performed through a secure application programming submitted in compliance with Section 9795 of the interface (API) or comparable technology which is well Government Code. documented, bi-directional, and accessible to any third- party application that has been validated and has (b) The Legislature shall provide sufficient funds to the appropriate credentials. The API or comparable technology California State Auditor's Office to conduct the annual shall have version control and provide adequate notice of audit required by this section. 196 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED CHAPTER 20. LOCAL CONTROL 25211. (a) Funds for the initial establishment and 26200. (a) Nothing in this division shall be interpreted support of the regulatory activities under this division, • to supersede or limit the authority of a local jurisdiction to including the public information program described in adopt and enforce local ordinances to regulate businesses subdivision (c), and for the activities of the Board of licensed under this division, including, but not limited to, Equalization under Part 14.5 (commencing with Section local zoning and land use requirements, business license 34010) of Division 2 of the Revenue and Taxation Code requirements, and requirements related to reducing until July 1, 2017, or until the 2017 Budget Act is exposure to secondhand smoke, or to completely prohibit enacted, whichever occurs later, shall be advanced from the establishment or operation of one or more types of the General Fund and shall be repaid by the initial proceeds businesses licensed under this division within the local from fees collected pursuant to this division, any rule or jurisdiction. regulation adopted pursuant to this division, or revenues collected from the tax imposed by Sections 34011 and (b) Nothing in this division shall be interpreted to require 34012 of the Revenue and Taxation Code, by January 1, a licensing authority to undertake local law enforcement 2025. responsibilities, enforce local zoning requirements, or (1) Funds advanced pursuant to this subdivision shall be enforce local licensing requirements. appropriated to the bureau, which shall distribute the (c) A local jurisdiction shall notify the bureau upon moneys to the appropriate licensing authorities, as revocation of any local license, permit, or authorization for necessary to implement the provisions of this division, and a licensee to engage in commercial marijuana activity to the Board of Equalization, as necessary, to implement within the local jurisdiction. Within 10 days of notification, the provisions of Part 14.5 (commencing with Section the bureau shall inform the relevant licensing authorities. 34010)of Division 2 of the Revenue and Taxation Code. Within 10 days of being so informed by the bureau, the (2) Within 45 days of this section becoming operative: relevant licensing authorities shall commence proceedings (A) The Director of Finance shall determine an amount of under Chapter 3 (commencing with Section 26030) to the initial advance from the General Fund to the Marijuana determine whether a license issued to the licensee should be suspended or revoked. Control Fund that does not exceed thirty million dollars (d) Notwithstanding paragraph (1) of subdivision (a) of ($30,000,000);and Section 11362.3 of the Health and Safety Code, a local (B) There shall be advanced a sum of five million dollars jurisdiction may allow for the smoking, vaporizing, and ($5,000,000) from the General Fund to the State- ingesting of marijuana or marijuana products on the Department of Health Care Services to provide for the premises of a retailer or microbusiness licensed under this public information program described in subdivision (c). division if: (b) Notwithstanding subdivision (a), the Legislature shall (1) Access to the area where marijuana consumption is provide sufficient funds to the Marijuana Control Fund to allowed is restricted to persons 21 years of age and older; support the activities of the bureau, state licensing authorities under this division, and the Board of (2) Marijuana consumption is not visible from any public Equalization to support its activities under Part 14.5 place or non-age restricted area; and (commencing with Section 34010) of Division 2 of the (3) Sale or consumption of alcohol or tobacco is not Revenue and Taxation Code. It is anticipated that this allowed on the premises, funding will be provided annually beginning on July 1, 2017. 26201. Any standards, requirements, and regulations (c) The State Department of Health Care Services shall regarding health and safety, environmental protection, establish and implement a public information program no testing, security, food safety, and worker protections later than September 1, 2017. This public information established by the state shall be the minimum standards program shall, at a minimum, describe the provisions of for all licensees under this division statewide. A local the Control, Regulate and Tax Adult Use of Marijuana Act jurisdiction may establish additional standards, of 2016, the scientific basis for restricting access of requirements, and regulations. marijuana and marijuana products to persons under the 26202. (a) A local jurisdiction may enforce this division age of 21 years, describe the penalties for providing access and the regulations promulgated by the bureau or any to marijuana and marijuana products to persons under the licensing authority if delegated the power to do so by the age of 21 years, provide information regarding the dangers bureau or a licensing authority. of driving a motor vehicle, boat, vessel, aircraft, or other (b) The bureau or any licensing authority shall implement vehicle used for transportation while impaired from the delegation of enforcement authority in subdivision (a) marijuana use, the potential harms of using marijuana through a memorandum of understanding between the while pregnant or breastfeeding, and the potential harms bureau or licensing authority and the local jurisdiction to of overusing marijuana or marijuana products. which enforcement authority is to be delegated. SEC. 6.2. Section 147.6 is added to the Labor Code, to CHAPTER 21. FUNDING read: 25210. (a) The Medical Cannabis Regulation and Safety 147.6. (a) By March 1, 2018, the Division of Act Fund established in Section 19351 is hereby renamed Occupational Safety and Health shall convene an advisory the Marijuana Control Fund. committee to evaluate whether there is a need to develop industry-specific regulations related to the activities of (b) Upon the effective date of this section, whenever licensees under Division 10 (commencing with "Medical Cannabis Regulation and Safety Act Fund" Section 26000) of the Business and Professions Code, appears in any statute, regulation, or contract, or in any including but not limited to, whether specific requirements • other code, it shall be construed to refer to the Marijuana are needed to address exposure to second-hand marijuana Control Fund. smoke by employees at facilities where on-site consumption Text of Proposed Laws 1 197 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED of marijuana is permitted under subdivision (d) of (d) "Marijuana"shall have the same meaning as set forth Section 26200 of the Business and Professions Code, and in Section 11018 of the Health and Safety Code and shall whether specific requirements are needed to address the also mean medical cannabis. potential risks of combustion, inhalation, armed robberies (e) "Marijuana products"shall have the same meaning as or repetitive strain injuries. set forth in Section 11018.1 of the Health and Safety (b) By October 1, 2018, the advisory committee shall Code and shall also mean medical concentrates and present to the board its findings and recommendations for medical cannabis products. consideration by the board. By October 1, 2018, the board (f) "Marijuana flowers"shall mean the dried flowers of the shall render a decision regarding the adoption of industry- marijuana plant as defined by the board. specific regulations pursuant to this section. (g) "Marijuana leaves" shall mean all parts of the SEC. 6.3. Section 13276 of the Water Code is amended marijuana plant other than marijuana flowers that are sold to read: or consumed. 13276. (a) The multiagency task force, the Department (h) "Gross receipts" shall have the same meaning as set of Fish and Wildlife and State Water Resources Control forth in Section 6012. Board pilot project to address the Environmental Impacts (i) "Retail sale"shall have the same meaning as set forth of Cannabis Cultivation, assigned to respond to the in Section 6007. damages caused by marijuana cultivation on public and (j) "Person"shall have the same meaning as set forth in private lands in California, shall continue its enforcement Section 6005. efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts (k) "Microbusiness"shall have the same meaning as set of marijuana cultivation on water quality and on fish and forth in paragraph(3)of subdivision(a)of Section 26O7Oof wildlife throughout the state. the Business and Professions Code. (b) Each regional board shall, and the State Water (l) "Nonprofit'shall have the same meaning as set forth in •' Resources Control Board may, address discharges of waste Section 26070.5 of the Business and Professions Code, resulting from medical marijuana cultivation and 34011. (a) Effective January 1, 2018, a marijuana commercial marijuana cultivation under Division 10 of the excise tax shall be imposed upon purchasers of marijuana Business and Professions Code and associated activities, or marijuana products sold in this state at the rate of 15 including by adopting a general permit, establishing waste percent of the gross receipts of any retail sale by a discharge requirements, or taking action pursuant to dispensary or other person required to be licensed pursuant Section 13269. In addressing these discharges, each to Chapter 3.5 (commencing with Section 19300) of regional board shall include conditions to address items Division 8 of the Business and Professions Code or a that include, but are not limited to, all of the following: retailer, microbusiness, nonprofit, or other person required to be licensed pursuant to Division 10 (commencing with (1) Site development and maintenance, erosion control, Section 26000) of the Business and Professions Code to and drainage features. sell marijuana and marijuana products directly to a (2) Stream crossing installation and maintenance. purchaser. (3) Riparian and wetland protection and management. (b) Except as otherwise provided by regulation, the tax levied under this section shall apply to the full price, if (4) Soil disposal. nonitemized, of any transaction involving both marijuana (5) Water storage and use. or marijuana products and any other otherwise distinct and (6) Irrigation runoff. identifiable goods or services,and the price of any goods or services, if a reduction in the price of marijuana or (7) Fertilizers and soil. marijuana products is contingent on purchase of those (8) Pesticides and herbicides. goods or services. (9) Petroleum products and other chemicals. (c) A dispensary or other person required to be licensed pursuant to Chapter 3.5 (commencing with Section (10) Cultivation-related waste. 19300)of Division 8 of the Business and Professions Code (11) Refuse and human waste, or a retailer, microbusiness, nonprofit, or other person required to be licensed pursuant to Division 10 (12) Cleanup, restoration, and mitigation. (commencing with Section 26000) of the Business and SEC. 7. Marijuana Tax. Professions Code shall be responsible for collecting this tax and remitting it to the board in accordance with rules SEC. 7.1. Part 14.5 (commencing with Section 34010) and procedures established under law and any regulations is added to Division 2 of the Revenue and Taxation Code, adopted by the board. to read: (d) The excise tax imposed by this section shall be in PART 14.5. MARIJUANA TAX addition to the sales and use tax imposed by the state and 34010. For purposes of this part: local governments. (a) "Board" shall mean the Board of Equalization or its (e) Gross receipts from the sale of marijuana or marijuana successor agency. products for purposes of assessing the sales and use tax under Part 1 of this division shall include the tax levied (b) "Bureau"shall mean the Bureau of Marijuana Control pursuant to this section. within the Department of Consumer Affairs. (f) No marijuana or marijuana products may be sold to a (c) "Tax Fund" means the California Marijuana Tax Fund purchaser unless the excise tax required by law has been created by Section 34018. paid by the purchaser at the time of sale. 198 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED (g) The sales and use tax imposed by Part 1 (commencing (j) The tax imposed by this section shall be imposed on all • with Section 6001)shall not apply to retail sales of medical marijuana cultivated in the state pursuant to rules and cannabis, medical cannabis concentrate, edible medical regulations promulgated by the board, but shall not apply cannabis products or topical cannabis as those terms are to marijuana cultivated for personal use under defined in Chapter 3.5(commencing with Section 19300) Section 11362.1 of the Health and Safety Code or of Division 8 of the Business and Professions Code when a cultivated by a qualified patient or primary caregiver in qualified patient or primary caregiver for a qualified patient accordance with the Compassionate Use Act. provides his or her card issued under Section 11362.71 of (k) Beginning January 1, 2020, the rates set forth in the Health and Safety Code and a valid government-issued subdivisions(a), (b), and(c)shall be adjusted by the board identification card. annually thereafter for inflation. 34012. (a) Effective January 1, 2018, there is hereby 34013. (a) The board shall administer and collect the imposed a cultivation tax on all harvested marijuana that taxes imposed by this part pursuant to the Fee Collection enters the commercial market upon all persons required to Procedures Law(Part 30(commencing with Section 55001) be licensed to cultivate marijuana pursuant to Chapter 3.5 of Division 2). For purposes of this part, the references in (commencing with Section 19300) of Division 8 of the the Fee Collection Procedures Law to "fee"shall include Business and Professions Code or Division 10(commencing the tax imposed by this part, and references to "feepayer" with Section 26000) of the Business and Professions shall include a person required to pay or collect the tax Code. The tax shall be due after the marijuana is harvested. imposed by this part. (1) The tax for marijuana flowers shall be nine dollars and (b) The board may prescribe, adopt, and enforce twenty-five cents ($9.25)per dry-weight ounce. regulations relating to the administration and enforcement (2) The tax for marijuana leaves shall be set at two dollars of this part, including, but not limited to, collections, and seventy-five cents ($2.75)per dry-weight ounce. reporting, refunds, and appeals. (b) The board may adjust the tax rate for marijuana leaves (c) The board shall adopt necessary rules and regulations annually to reflect fluctuations in the relative price of to administer the taxes in this part. Such rules and marijuana flowers to marijuana leaves. regulations may include methods or procedures to tag •' (c) The board may from time to time establish other marijuana or marijuana products, or the packages thereof, categories of harvested marijuana, categories for to designate prior tax payment. unprocessed or frozen marijuana or immature plants, or (d) The board may prescribe, adopt, and enforce any marijuana that is shipped directly to manufacturers. These emergency regulations as necessary to implement, categories shall be taxed at their relative value compared administer and enforce its duties under this division. Any with marijuana flowers. emergency regulation prescribed, adopted, or enforced (d) The board may prescribe by regulation a method and pursuant to this section shall be adopted in accordance manner for payment of the cultivation tax that utilizes tax with Chapter 3.5 (commencing with Section 11340) of stamps or state-issued product bags that indicate that all Part 1 of Division 3 of Title 2 of the Government Code, required tax has been paid on the product to which the tax and,forpurposesofthatchapter,including Section 11349.6 stamp is affixed or in which the marijuana is packaged. of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of (e) The tax stamps and product bags shall be of the Administrative Law as necessary for the immediate designs, specifications and denominations as may be preservation of the public peace, health and safety, and prescribed by the board and may be purchased by any general welfare. Notwithstanding any other provision of licensee under Chapter 3.5 (commencing with law, the emergency regulations adopted by the board may Section 19300) of Division 8 of the Business and remain in effect for two years from adoption. Professions Code or under Division 10 (commencing with Section 26000)of the Business and Professions Code. (e) Any person who fails to pay the taxes imposed under (f) Subsequent to the establishment of a tax stamp this part shall, in addition to owing the taxes not paid, be the board e b regulationentr a t that no subject to a penalty of at least one-half the amount of the program,. y yp taxes not paid, and shall be subject to having its license marijuana may be removed from a licensed cultivation revoked pursuant to Section 26031 of the Business and facility or transported on a public highway unless in a Professions Code or pursuant to Chapter 3.5(commencing state-issued product bag bearing a tax stamp in the proper with Section 19300) of Division 8 of the Business and denomination. Professions Code. (g) The tax stamps and product bags shall be capable of (f) The board may bring such legal actions as are necessary being read by a scanning or similar device and must be to collect any deficiency in the tax required to be paid, traceable utilizing the track and trace system pursuant to and, upon the board's request, the Attorney General shall Section 26170 of the Business and Professions Code. bring the actions. (h) Persons required to be licensed to cultivate marijuana 34014. (a) All persons required to be licensed involved pursuant to Chapter 3.5 (commencing with Section in the cultivation and retail sale of marijuana or marijuana 19300)of Division 8 of the Business and Professions Code products must obtain a separate permit from the board or Division 10 (commencing with Section 26000) of the pursuant to regulations adopted by the board. No fee shall Business and Professions Code shall be responsible for be charged to any person for issuance of the permit. Any payment of the tax pursuant to regulations adopted by the person required to obtain a permit who engages in business board. No marijuana may be sold unless the tax has been as a cultivator, dispensary, retailer, microbusiness or paid as provided in this part. nonprofit pursuant to Chapter 3.5 (commencing with (i) All marijuana removed from a cultivator's premises, Section 19300)of Division 8 or Division 10(commencing except for plant waste, shall be presumed to be sold and with Section 26000)of the Business and Professions Code thereby taxable under this section. without a permit or after a permit has been canceled, Text of Proposed Laws 1 199 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED suspended, or revoked, and each officer of any corporation (2) Inspections may be at any place at which marijuana or which so engages in business, is guilty of a misdemeanor. marijuana products are sold to purchasers, cultivated, or (b) The board may require every licensed dispensary, stored, or at any site where evidence of activities involving cultivator, microbusiness, nonprofit, or other person evasion of tax may be discovered. required to be licensed, to provide security to cover the (3) Inspections shall be requested or conducted no more liability for taxes imposed by state law on marijuana than once in a 24-hour period. produced or received by the cultivator, microbusiness, (b) Any person who fails or refuses to allow an inspection nonprofit, or other person required to be licensed in shall be guilty of a misdemeanor. Each offense shall be accordance with procedures to be established by the punished by a fine not to exceed five thousand dollars board. Notwithstanding anything herein to the contrary, ($5,000), or imprisonment not exceeding one year in a the board may waive any security requirement it imposes county jail, or both the fine and imprisonment. The court for good cause, as determined by the board. "Good cause" shall order any fines assessed be deposited in the California includes, but is not limited to, the inability of a cultivator, Marijuana Tax Fund. microbusiness, nonprofit, or other person required to be licensed to obtain security due to a lack of service providers (c) Upon discovery by the board or a law enforcement or the policies of service providers that prohibit service to agency that a licensee or any other person possesses, a marijuana business. A person may not commence or stores, owns, or has made a retail sale of marijuana or continue any business or operation relating to marijuana marijuana products, without evidence of tax payment or cultivation until any surety required by the board with not contained in secure packaging, the board or the law respect to the business or operation has been properly enforcement agency shall be authorized to seize the prepared, executed and submitted under this part. marijuana or marijuana products. Any marijuana or marijuana products seized by a law enforcement agency or (c) In fixing the amount of any security required by the the board shall within seven days be deemed forfeited and board, the board shall give consideration to the financial the board shall comply with the procedures set forth in hardship that may be imposed on licensees as a result of Sections 30436 through 30449, inclusive. •' any shortage of available surety providers. (d) Any person who renders a false or fraudulent report is 34015. (a) The marijuana excise tax and cultivation tax guilty of a misdemeanor and subject to a fine not to exceed imposed by this part is due and payable to the board one thousand dollars ($1,000) for each offense. quarterly on or before the last day of the month following (e) Any violation of any provisions of this part, except as each quarterly period of three months. On or before the otherwise provided, is a misdemeanor and is punishable as last day of the month following each quarterly period, a such. return for the preceding quarterly period shall be filed with the board by each person required to be licensed for (f) All moneys remitted to the board under this part shall cultivation or retail sale under Chapter 3.5 (commencing be credited to the California Marijuana Tax Fund. with Section 19300) of Division 8 or Division 10 34017. The Legislative Analyst's Office shall submit a (commencing with Section 26000) of the Business and report to the Legislature by January 1, 2020, with Professions Code using electronic media. Returns shall be recommendations to the Legislature for adjustments to the authenticated in a form or pursuant to methods as may be tax rate to achieve the goals of undercutting illicit market prescribed by the board. If the cultivation tax is paid by prices and discouraging use by persons younger than stamp pursuant to subdivision (d) of Section 34012 the 21 years of age while ensuring sufficient revenues are board may by regulation determine when and how the tax generated for the programs identified in Section 34019. shall be paid. 34018. (a) The California Marijuana Tax Fund is hereby (b) The board may require every person engaged in the created in the State Treasury. The Tax Fund shall consist of cultivation, distribution or retail sale of marijuana and all taxes, interest, penalties, and other amounts collected marijuana products required to be licensed pursuant to and paid to the board pursuant to this part, less payment Chapter 3.5 (commencing with Section 19300) of of refunds. Division 8 or Division 10 (commencing with Section (b) Notwithstanding any other law, the California Marijuana 26000)of the Business and Professions Code to file, on or Control, Regulate and Tax Adult before the 25th day of each month,a report using electronic Tax Fund is a special trust fund established solely to carry media respecting the personss inventory, purchases, and out the purposes is Use of Marijuana Act and the Con on revenues deposited into the sales during the preceding month and any other information as the board may require Tax Fund, together with interest or dividends earned by the carry out the purposes of this part. Reports shall be authenticated fund, are hereby continuously appropriated for thenticated in a form or pursuant purposes of the Control, Regulate and Tax Adult Use of to methods as may be prescribed by the board. Marijuana Act without regard to fiscal year and shall be 34016. (a) Any peace officer or board employee granted expended only in accordance with the provisions of this limited peace officer status pursuant to paragraph (6) of part and its purposes. subdivision (a)of Section 830.11 of the Penal Code, upon (c) Notwithstanding any other law, the taxes imposed by presenting appropriate credentials, is authorized to enter this part and the revenue derived therefrom, including any place as described in paragraph (3) and to conduct investment interest, shall not be considered to be part of inspections in accordance with the following paragraphs, the General Fund, as that term is used in Chapter 1 inclusive. (commencing with Section 16300)of Part 2 of Division 4 (1) Inspections shall be performed in a reasonable manner of the Government Code, shall not be considered General and at times that are reasonable under the circumstances, Fund revenue for purposes of Section 8 of Article XVI of taking into consideration the normal business hours of the the California Constitution and its implementing statutes, place to be entered. and shall not be considered "moneys" for purposes of 200 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED subdivisions (a)and (b) of Section 8 of Article XVI of the findings at a minimum of every two years and shall make • California Constitution and its implementing statutes. the reports available to the public. The bureau shall select 34019. (a) Beginning with fiscal year 2017-2018 the the universities to be funded. The research funded Department of Finance shall estimate revenues to be Pursuant to this subdivision shall include but not received pursuant to Sections 34011 and 34012 and necessarily be limited to: provide those estimates to the Controller no later than (1) Impacts on public health, including health costs June 15 of each year. The Controller shall use these associated with marijuana use, as well as whether estimates when disbursing funds pursuant to this section. marijuana use is associated with an increase or decrease Before any funds are disbursed pursuant to subdivisions(b), in use of alcohol or other drugs. (c), (d),and(e)of this section, the Controller shall disburse (2) The impact of treatment for maladaptive marijuana from the Tax Fund to the appropriate account, without use and the effectiveness of different treatment programs. regard to fiscal year, the following: (1) Reasonable costs incurred by the board for (3) Public safety issues related to marijuana use, including studying the effectiveness of the packaging and labeling administering and collecting the taxes imposed board this p requirements and advertising and marketing restrictions art; provided, however, such costs shall not exceed 4 percent of tax revenues received. contained in the act at preventing underage access to and use of marijuana and marijuana products, and studying (2) Reasonable costs incurred by the bureau, the the health-related effects among users of varying potency Department of Consumer Affairs, the Department of Food levels of marijuana and marijuana products. and Agriculture, and the State Department of Public (4) Marijuana use rates, maladaptive use rates for adults Health for implementing, administering, and enforcing and youth, and diagnosis rates of marijuana-related Chapter 3.5 (commencing with Section 19300) of substance use disorders. Division 8 of the Business and Professions Code and Division 10 (commencing with Section 26000) of the (5) Marijuana market prices, illicit market prices, tax Business and Professions Code to the extent those costs structures and rates, including an evaluation of how to are not reimbursed pursuant to Section 26180 of the best tax marijuana based on potency, and the structure Business and Professions Code or pursuant to Chapter 3.5 and function of licensed marijuana businesses. (commencing with Section 19300) of Division 8 of the (6) Whether additional protections are needed to prevent Business and Professions Code. This paragraph shall unlawful monopolies or anti-competitive behavior from remain operative through fiscal year 2022-2023. occurring in the nonmedical marijuana industry and, if so, (3) Reasonable costs incurred by the Department of Fish recommendations as to the most effective measures for and Wildlife, the State Water Resources Control Board, preventing such behavior. and the Department of Pesticide Regulation for carrying (7) The economic impacts in the private and public out their respective duties under Chapter 3.5(commencing sectors, including, but not necessarily limited to, job with Section 19300) of Division 8 or Division 10 creation, workplace safety, revenues, taxes generated for (commencing with Section 26000) of the Business and state and local budgets, and criminal justice impacts, Professions Code to the extent those costs are not otherwise including, but not necessarily limited to, impacts on law reimbursed. enforcement and public resources, short and long term (4) Reasonable costs incurred by the Controller for consequences of involvement in the criminal justice performing duties imposed by the Control, Regulate and system, and state and local government agency Tax Adult Use of Marijuana Act, including the audit administrative costs and revenue. required by Section 34020. (8) Whether the regulatory agencies tasked with (5) Reasonable costs incurred by the State Auditor for implementing and enforcing the Control, Regulate and Tax conducting the performance audit pursuant to Adult Use of Marijuana Act are doing so consistent with Section 26191 of the Business and Professions Code. the purposes of the act, and whether different agencies (6) Reasonable costs incurred by the Legislative Analyst's might do so more effectively. Office for performing duties imposed by Section 34017. (9) Environmental issues related to marijuana production (7) Sufficient funds to reimburse the Division of Labor and the criminal prohibition of marijuana production. Standards Enforcement and the Division of Occupational (10) The geographic location, structure, and'function of Safety and Health within the Department of Industrial licensed marijuana businesses, and demographic data, Relations and the Employment Development Department including race, ethnicity, and gender, of license holders. for the costs of applying and enforcing state labor laws to (11) The outcomes achieved by the changes in criminal licensees.under Chapter 3.5 (commencing with Section penalties made under the Control, Regulate and Tax Adult 19300) of Division 8 and Division 10 (commencing with Use of Marijuana Act for marijuana-related offenses, and Section 26000)of the Business and Professions Code. the outcomes of the juvenile justice system, in particular, (b) The Controller shall next disburse the sum of ten probation-based treatments and the frequency of up- million dollars ($10,000,000) to a public university or charging illegal possession of marijuana or marijuana universities in California annually beginning with fiscal products to a more serious offense. year 2018-2019 until fiscal year 2028-2029 to research (c) The Controller shall next disburse the sum of three and evaluate the implementation and effect of the Control, million dollars ($3,000,000) annually to the Department Regulate and Tax Adult Use of Marijuana Act, and shall, if of the California Highway Patrol beginning fiscal year appropriate, make recommendations to the Legislature 2018-2019 until fiscal year 2022-2023 to establish and and Governor regarding possible amendments to the adopt protocols to determine whether a driver is operating • Control, Regulate and Tax Adult Use of Marijuana Act. The a vehicle while impaired, including impairment by the use recipients of these funds shall publish reports on their of marijuana or marijuana products, and to establish and Text of Proposed Laws 1 201 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED • adopt protocols setting forth best practices to assist law care providers, juvenile and family courts, and others to enforcement agencies. The department may hire personnel recognize and reduce risks related to substance use, and to establish the protocols specified in this subdivision. In the early signs of problematic use and of substance use addition, the department may make grants to public and disorders. private research institutions for the purpose of developing (B) Grants to schools to develop and support student technology for determining when a driver is operating a assistance programs, or other similar programs, designed vehicle while impaired, including impairment by the use of to prevent and reduce substance use, and improve school marijuana or marijuana products. retention and performance, by supporting students who (d) The Controller shall next disburse the sum of ten are at risk of dropping out of school and promoting million dollars ($10,000,000) beginning fiscal year alternatives to suspension or expulsion that focus on school 2018-2019 and increasing ten million dollars retention, remediation, and professional care. Schools ($10,000,000)each fiscal year thereafter until fiscal year with higher than average dropout rates should be prioritized 2022-2023, at which time the disbursement shall be fifty for grants. million dollars($50,000,000)each year thereafter, to the (C) Grants to programs for outreach, education and Governor's Office of Business and Economic Development, treatment for homeless for and out outreach, education with in consultation with the Labor and Workforce Development y youth Agency and the State Department of Social Services, to substance use disorders. administer a community reinvestments grants program to (D) Access and linkage to care provided by county local health departments and at least 50 percent to behavioral health programs for youth, and their families qualified community-based nonprofit organizations to and caregivers, who have a substance use disorder or who support job placement,mental health treatment,substance are at risk for developing a substance use disorder. use disorder treatment, system navigation services, legal (E) Youth-focused substance use disorder treatment services to address barriers to reentry, and linkages to programs that are culturally and gender competent, medical care for communities disproportionately affected trauma-informed,evidence-based and provide a continuum by past federal and state drug policies. The office shall •' solicit input from community-based job skills, job of care that includes screening and assessment(substance placement, and legal service providers with relevant use disorder as well as mental health), early intervention, expertise as to the administration of the grants program. In active treatment, family involvement, case management, addition, the office shall periodically evaluate the programs overdose prevention,prevention of communicable diseases it is funding to determine the effectiveness of the programs, related to substance use, relapse management for shall not spend more than 4 percent for administrative substance use and other co-occurring behavioral health costs related to implementation, evaluation and oversight disorders, vocational services, literacy services, parenting of the programs,and shall award grants annually, beginning classes, family therapy and counseling services, no later than January 1, 2020. medication-assisted treatments, psychiatric medication (e) The Controller shall next disburse the sum of two and psychotherapy. When indicated, referrals must be million dollars($2,000,000)annually to the University of made to other providers. California San Diego Center for Medicinal Cannabis (F) To the extent permitted by law and where indicated, Research to further the objectives of the center including interventions shall utilize a two generation approach to the enhanced understanding of the efficacy and adverse addressing substance use disorders with the capacity to effects of marijuana as a pharmacological agent. treat youth and adults together. This would include (f) By July 15 of each fiscal year beginning in fiscal year supporting the development of family-based interventions 2018-2019, the Controller shall, after disbursing funds that address substance use disorders and related problems pursuant to subdivisions(a), (b), (c), (d), and(e), disburse within the context of families, including parents, foster funds deposited in the Tax Fund during the prior fiscal year parents, caregivers and all their children. into sub-trust accounts, which are hereby created, as (G) Programs to assist individuals, as well as families and follows: friends of drug using young people, to reduce the stigma (1) S/xtypercentshal/be deposited in the Youth Education, associated with substance use including being diagnosed Prevention, Early Intervention and Treatment Account,and with a substance use disorder or seeking substance use disbursed by the Controller to the State Department of disorder services. This includes peer-run outreach and Health Care Services for programs for youth that are education to reduce stigma, anti-stigma campaigns, and designed to educate about and to prevent substance use community recovery networks. disorders and to prevent harm from substance use. The (H) Workforce training and wage structures that increase State Department of Health Care Services shall enter into the hiring pool of behavioral health staff with substance interagency agreements with the State Department of use disorder prevention and treatment expertise. Provide Public Health and the State Department of Education to ongoing education and coaching that increases substance implement and administer these programs. The programs use treatment providers' core competencies and trains shall emphasize accurate education, effective prevention, providers on promising and evidenced-based practices. early intervention, school retention, and timely treatment (0 Construction of community-based youth treatment services for youth, their families and caregivers. The facilities. programs may include, but are not limited to, the following components: (J) The departments may contract with each county (A) Prevention and early intervention services including behavioral health program for the provision of services. outreach, risk survey and education to youth, families, (K) Funds shall be allocated to counties based on • caregivers, schools, primary care health providers, demonstrated need, including the number of youth in the behavioral health and substance use disorder service county, the prevalence of substance use disorders among providers, community and faith-based organizations, foster adults, and confirmed through statistical data, validated 202 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED assessments or submitted reports prepared by the General Fund appropriations to the Department of Fish • applicable county to demonstrate and validate need. and Wildlife and the Department of Parks and Recreation (L) The departments shall periodically evaluate the shall not be reduced below the levels provided in the programs they are funding to determine the effectiveness Budget Act of 2014(Chapter 25 of the Statutes of 2014). of the programs. (3) Twenty percent shall be deposited into the State and (M) The departments may use up to 4 percent of the Local Government Law Enforcement Account and disbursed moneys allocated to the Youth Education, Prevention, by the Controller as follows: Early Intervention and TreatmentAccount for administrative (A) To the Department of the California Highway Patrol for costs related to implementation, evaluation and oversight conducting training programs for detecting, testing and of the programs. enforcing laws against driving under the influence of (N) If the Department of Finance ever determines that alcohol and other drugs, including driving under the funding pursuant to marijuana taxation exceeds demand influence of marijuana. The department may hire personnel for youth prevention and treatment services in the state, to conduct the training programs specified in this the departments shall provide a plan to the Department of subparagraph. Finance to provide treatment services to adults as well as (B) To the Department of the California Highway Patrol to youth using these funds. fund internal California Highway Patrol programs and (0) The departments shall solicit input from volunteer grants to qualified nonprofit organizations and local health organizations, physicians who treat addiction, governments for education,prevention and enforcement of treatment researchers, family therapy and counseling laws related to driving under the influence of alcohol and providers, and professional education associations with other drugs, including marijuana; programs that help relevant expertise as to the administration of any grants enforce traffic laws, educate the public in traffic safety, made pursuant to this paragraph. provide varied and effective means of reducing fatalities, (2) Twenty percent shall be deposited in the Environmental injuries and economic losses from collisions; and for the Restoration and Protection Account, and disbursed by the purchase of equipment related to enforcement of laws , Controller as follows: related to driving under the influence of alcohol and other drugs, including marijuana. (A) To the Department of Fish and Wildlife and the (C) To the Board of State and Community Corrections for Department of Parks and Recreation for the cleanup, y remediation, and restoration of environmental damage in making grants to local governments to assist with law watersheds affected by marijuana cultivation and related enforcement, fire protection, or other local programs activities including, but not limited to, damage that addressing public health and safety associated with the occurred prior to enactment of this part, and to support implementation of the Control, Regulate and Tax Adult Use local partnerships for this purpose. The Department of of Marijuana Act. The board shall not make any grants to Fish and Wildlife and the Department of Parks and local governments which have banned the cultivation, Recreation may distribute a portion of the funds they including personal cultivation under paragraph (3) of receive from the Environmental Restoration and Protection subdivision (b) of Section 11362.2 of the Health and Account through grants for purposes specified in this Safety Code, or retail sale of marijuana or marijuana paragraph. products pursuant to Section 26200 of the Business and (B) To the Department of Fish and Wildlife and the Professions Code or as otherwise provided by law. Department of Parks and Recreation for the stewardship (D) For purposes of this paragraph, the Department of and operation of state-owned wildlife habitat areas and Finance shall determine the allocation of revenues between state park units in a manner that discourages and prevents the agencies; provided, however, beginning in fiscal year the illegal cultivation,production,sale and use of marijuana 2022-2023 the amount allocated pursuant to and marijuana products on public lands, and to facilitate subparagraph (A)shall not be less than ten million dollars the investigation, enforcement and prosecution of illegal ($10,000,000) annually and the amount allocated cultivation, production, sale, and use of marijuana or pursuant to subparagraph (B) shall not be less than forty marijuana products on public lands. million dollars ($40,000,000) annually. In determining (C) To the Department of Fish and Wildlife to assist in the amount to be allocated before fiscal year 2022-2023 funding the watershed enforcement program and pursuant to this paragraph, the Department of Finance multiagency taskforce established pursuant to shall give initial priority to subparagraph (A). subdivisions (b)and(c)of Section 12029 of the Fish and (g) Funds allocated pursuant to subdivision (f) shall be Game Code to facilitate the investigation, enforcement, used to increase the funding of programs and purposes and prosecution of these offenses and to ensure the identified and shall not be used to replace allocation of reduction of adverse impacts of marijuana cultivation, other funding for these purposes. production, sale, and use on fish and wildlife habitats (h) Effective July 1, 2028, the Legislature may amend throughout the state. this section by majority vote to further the purposes of the (D) For purposes of this paragraph, the Secretary of the Control, Regulate and Tax Adult Use of Marijuana Act, Natural Resources Agency shall determine the allocation including allocating funds to programs other than those of revenues between the departments. During the first five specified in subdivisions(d)and(f).Any revisions pursuant years of implementation, first consideration should be to this subdivision shall not result in a reduction of funds given to funding purposes specified in subparagraph (A). to accounts established pursuant to subdivisions(d)and(f) (E) Funds allocated pursuant to this paragraph shall be in any subsequent year from the amount allocated to each used to increase and enhance activities described in account in fiscal year 2027-2028. Prior to July 1, 2028, subparagraphs(A), (B), and(C), and not replace allocation the Legislature may not change the allocations to programs of other funding for these purposes. Accordingly, annual specified in subdivisions(d)and(f). Text of Proposed Laws 1 203 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED 34020. The Controller shall periodically audit the Tax Fund to ensure that those funds are used and accounted for in a manner consistent with this part and as otherwise Seetion 667 of the Pena' Gode or for am offe.— required by law. 34021. The taxes imposed by this part shall be in addition to any other tax imposed by a city, county, or city (13) (a) Except as authorized by law, every—perserr�v+ie and county. possesses possession of not more than 28.5 grams of 34021.5. (a) (1) A county may impose a tax on the marijuana, other then or not more than four grams o privilege of cultivating, manufacturing, producing, concentrated cannabis, processing,preparing,storing,providing, donating,selling, or or distributing marijuana or marijuana products by a both, shall be punished or adjudicated as follows: licensee operating under Chapter 3.5 (commencing with (1) Persons under the age of 18 shall be guilty of an Section 19300)of Division 8 or Division 10(commencing infraction and shall be required to: with Section 26000) of the Business and Professions (A) Upon a finding that a first offense has been committed, Code. complete four hours of drug education or counseling and (2) The board of supervisors shall specify in the ordinance up to 10 hours of community service over a period not to proposing the tax the activities subject to the tax, the exceed 60 days. applicable rate or rates, the method of apportionment, if (B) Upon a finding that a second offense or subsequent necessary, and the manner of collection of the tax. The tax offense has been committed, complete six hours of drug may be imposed for general governmental purposes or for education or counseling and up to 20 hours of community purposes specified in the ordinance by the board of service over a period not to exceed 90 days. supervisors. su In addition to an other method of collection authorized (2) Persons at least 18 years of age but less than 21 years y of age shall be guilty of an infraction and punishable by a by law, the board of supervisors may provide for the fine of not more than one hundred dollars($100). •' collection of the tax imposed pursuant to this section in the same manner, and subject to the same penalties and (b) Except as authorized by law, every perse e priority of lien, as other charges and taxes fixed and possesses possession of more than 28.5 grams of collected by the county. A tax imposed pursuant to this marijuana, or more than four grams of ether them section is a tax and not a fee or special assessment. The concentrated cannabis, shall be punished as follows: board of supervisors shall specify whether the tax applies (1) Persons under the age of 18 who possess more than throughout the entire county or within the unincorporated 28.5 grams of marijuana or more than four grams of ' area of the county. concentrated cannabis, or both, shall be guilty of an (4) The tax authorized by this section may be imposed infraction and shall be required to: upon any or all of the activities set forth in paragraph (1), (A) Upon a finding that a first offense has been committed, as specified in the ordinance, regardless of whether the complete eight hours of drug education or counseling and activity is undertaken individually, collectively, or up to 40 hours of community service over a period not to cooperatively, and regardless of whether the activity is for exceed 90 days. compensation or gratuitous, as determined by the board of (B) Upon a finding that a second or subsequent offense supervisors. has been committed, complete 10 hours of drug education (b) A tax imposed pursuant to this section shall be subject or counseling and up to 60 hours of community service to applicable voter approval requirements imposed by law. over a period not to exceed 120 days. (c) This section is declaratory of existing law and does not (2) Persons 18 years of age or over who possess more than limit or prohibit the levy or collection of any other fee, 28.5 grams of marijuana, or more than four grams of charge, or tax, or a license or service fee or charge upon, or concentrated cannabis, or both, shall be punished by related to, the activities set forth in subdivision (a) as imprisonment in a county jail for a period of not more than otherwise provided by law. This section shall not be six months or by a fine of not more than five hundred construed as a limitation upon the taxing authority of a dollars ($500), or by both such fine and imprisonment. county as provided by law. (6) (c) Except as authorized by law, every person 18 years (d) This section shall not be construed to authorize a of age or over who possesses not more than 28.5 grams of county to impose a sales or use tax in addition to the sales marijuana, or not more than four grams of matt and use tax imposed under an ordinance conforming to the concentrated cannabis, upon the grounds of,or within,any provisions of Sections 7202 and 7203 of the Revenue and school providing instruction in kindergarten or any of Taxation Code. grades 1 through 12 during hours the school is open for SEC. 8. Criminal Offenses, Records, and Resentencim, classes or school-related programs is guilty of a SEC. 8.1. Section 11357 of the Health and Safety Code misdemeanor and shall be punished b"as follows: is amended to read: (1) A fine of not more than two hundred fifty dollars 11357. Possession. ($250), upon a finding that a first offense has been committed. every person who possesses any eameentrated eamma." shall be ptimished by the eounty jail fo" (2) A fine of not more than five hundred dollars($500), or period of mat Priere tham fine of not m by imprisonment in a county jail for a period of not more bell. a than 10 days, or both, upon a finding that a second or subsequent offense has been committed. ' (e) (d) Except as authorized by law, every person under the age of 18 who possesses not more than 28.5 grams of 204 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED marijuana, or not more than four grams of other them (E) Violation of Section 374.8 of the Penal Code relating • concentrated cannabis, upon the grounds of, or within, any to hazardous substances or Section 25189.5,25189.6, or school providing instruction in kindergarten or any of 25189.7 of the Health and Safety Code relating to grades 1 through 12 during hours the school is open for hazardous waste; classes or school-related programs is guilty of a (F) Violation of Section 2080 of the Fish and Game Code tgtsdermesmer an infraction and shall be punished in the relating to endangered and threatened species or same manner provided in paragraph (1)of subdivision(b). Section 3513 of the Fish and Game Code relating to the subjeet to the following dispasitiams. Migratory Bird Treaty Act; or (G) Intentionally or with gross negligence causing ($250), upom a findimg that a first offense has been substantial environmental harm to public lands or other eonirn'tted. public resources. SEC. 8.3. Section 11359 of the Health and Safety Code is amended to read: or uent 11359. Possession for Sale. offense been __._._:tted Every person who possesses for sale any marijuana, except SEC. 8.2. Section 11358 of the Health and Safety Code as otherwise provided by law, shall be punished as follows: is amended to read: (a) Every person under the age of 18 who possesses 11358. Planting, Harvesting, or Processing. marijuana for sale shall be punished in the same manner provided in paragraph (1) of subdivision (b) of Every person who plants, cultivates, harvests, dries, or Section 11357. processes e"marijuana plants,or any part thereof, except (b) Every person 18 years of age or over who possesses as otherwise provided by law, shall be punished as follows: marijuana for sale shall be punished by imprisonment in a (a) Every person under the age of 18 who plants,cultivates, county jail for a period of not more than six months or by a . harvests, dries, or processes any marijuana plants shall be fine of not more than five hundred dollars ($500), or by punished in the same manner provided in paragraph (1)of both such fine and imprisonment. subdivision (b)of Section 11357. (c) Notwithstanding subdivision (b), a person 18 years of (b) Every person at least 18 years of age but less than 21 age or over who possesses marijuana for sale may be years of age who plants, cultivates, harvests, dries, or punished by imprisonment pursuant to subdivision (h) of processes not more than six living marijuana plants shall Section 1170 of the Penal Code if. be guilty of an infraction and a fine of not more than one (1) The person has one or more prior convictions for an hundred dollars ($100). offense specified in clause (iv) of subparagraph (C) of (c) Every person 18 years of age or over who plants, paragraph (2) of subdivision (e) of Section 667 of the cultivates, harvests, dries, or processes more than six living Penal Code or for an offense requiring registration pursuant marijuana plants shall be punished by imprisonment in a to subdivision (c)of Section 290 of the Penal Code; county jail for a period of not more than six months or by a (2) The person has two or more prior convictions under fine of not more than five hundred dollars ($500), or by subdivision (b);or both such fine and imprisonment. (3) The offense occurred in connection with the knowing (d) Notwithstanding subdivision (c), a person 18 years of sale or attempted sale of marijuana to a person under the age or over who plants, cultivates, harvests, dries, or age of 18 years. processes more than six living marijuana plants, or any (d) Notwithstanding subdivision (b), a person 21 years of part thereof, except as otherwise provided by law, sheR age or over who possesses marijuana for sale may be may be punished by imprisonment pursuant to punished by imprisonment pursuant to subdivision (h) of subdivision (h)of Section 1170 of the Penal Code if: Section 1170 of the Penal Code if the offense involves (1) The person has one or more prior convictions for an knowingly hiring, employing, or using a person 20 years of offense specified in clause (iv) of subparagraph (C) of age or younger in unlawfully cultivating, transporting, paragraph (2) of subdivision (e) of Section 667 of the carrying, selling, offering to sell,giving away, preparing for Penal Code or for an offense requiring registration pursuant sale, or peddling any marijuana. to subdivision (c)of Section 290 of the Penal Code; SEC. 8.4. Section 11360 of the Health and Safety Code (2) The person has two or more prior convictions under is amended to read: subdivision (c);or 11360. Unlawful Transportation, Importation, Sale, or (3) The offense resulted in any of the following: Gift. (A) Violation of Section 1052 of the Water Code relating to (a) Except as otherwise provided by this section or as illegal diversion of water; authorized by law, every person who transports, imports (B) Violation of Section 13260, 13264, 13272,or 13387 into this state, sells, furnishes, administers, or gives away, of the Water Code relating to discharge of waste, or offers to transport, import into this state, sell, furnish, administer, or give away, or attempts to import into this (C) Violation of Fish and Game Code Section 5650 or state or transport any marijuana shall be punished as Section 5652 of the Fish and Game Code relating to waters follows: of the state; (1) Persons under the age of 18 years shall be punished in (D) Violation of Section 1602 of the Fish and Game Code the same manner as provided in paragraph (1) of • relating to rivers, streams and lakes; subdivision (b)of Section 11357. Text of Proposed Laws 1 205 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED • (2) Persons 18 years of age or over shall be punished by (a) Records of any court of this state, any public or private imprisonment in a county jail for a period of not more than agency that provides services upon referral under six months or by a fine of not more than five hundred Section 1000.2 of the Penal Code, or of any state agency dollars ($500), or by both such fine and imprisonment. pertaining to the arrest or conviction of any person for a (3) Notwithstanding paragraph (2), a person I8 years of violation of Section 11357 age or over may be punished by imprisonment pursuant to or subdivision (b) of Section 11360, or pertaining to the subdivision (h) of Section 1170 of the Penal Code fora arrest or conviction of any person under the age of 18 for period of two, three or four years if: a violation of any provision of this article except Section 11357.5, shall not be kept beyond two years from (A) The person has one or more prior convictions for an the date of the conviction, or from the date of the arrest if offense specified in clause (iv) of subparagraph (C) of there was no conviction, except with respect to a violation paragraph (2) of subdivision (e) of Section 667 of the of subdivision fe} (d) of Section 11357, or any other Penal Code or for an offense requiring registration pursuant violation by a person under the age of 18 occurring upon to subdivision (c)of Section 290 of the Penal Code; the grounds of, or within, any school providing instruction (B) The person has two or more prior convictions under in kindergarten or any of grades 1 through 12 during hours paragraph (2); the school is open for classes or school-related programs, the records shall be retained until the offender attains the (C) The offense involved the knowing sale,attempted sale, age of 18 years at which time the records shall be destroyed or the knowing offer to sell, furnish, administer or give as provided in this section. Any court or agency having away marijuana to a person under the age of 18 years; or custody of the records, including the statewide criminal (D) The offense involved the import, offer to import, or databases, shall provide for the timely destruction of the attempted import into this state, or the transport for sale, records in accordance with subdivision (c), and such offer to transport for sale, or attempted transport for sale records must also be purged from the statewide criminal out of this state, of more than 28.5 grams of marijuana or databases.As used in this subdivision, records pertaining more than four grams of concentrated cannabis. to the arrest or conviction shall include records of arrests resulting in the criminal proceeding and records relating to (b) Except as authorized by law, every person who gives other offenses charged in the accusatory pleading, whether away, offers to give away, transports, offers to transport, or defendant was acquitted or charges were dismissed. The attempts to transport not more than 28.5 grams of two-year period beyond which records shall not be kept marijuana, other than concentrated cannabis, is guilty of pursuant to this subdivision shall not apply to any person an infraction emeener and shall be punished by a fine who is, at the time at which this subdivision would of not more than one hundred dollars ($100). In any case otherwise require record destruction, incarcerated for an in which a person is arrested for a violation of this offense subject to this subdivision. For such persons, the subdivision and does not demand to be taken before a two-year period shall begin to run from the date the person magistrate, such person shall be released by the arresting is released from custody. The requirements of this officer upon presentation of satisfactory evidence of subdivision do not apply to records of any conviction identity and giving his or her written promise to appear in occurring prior to January 1, 1976, or records of any arrest court,as provided in Section 853.6 of the Penal Code,and not followed by a conviction occurring prior to that date, or shall not be subjected to booking. records of any arrest for an offense specified in subdivision (c) For purposes of this section, "transport" means to (c)of Section 1192.7, or subdivision (c)of Section 667.5 of the Penal Code. transport for sale. (d) This section does not preclude or limit prosecution for (b) This subdivision applies only to records of convictions p p and arrests not followed by conviction occurring prior to any aiding and abetting or conspiracy offenses. January 1, 1976, for any of the following offenses: SEC. 8.5. Section 11361.1 is added to the Health and (1) Any violation of Section 11357 or a statutory Safety Code, to read: predecessor thereof. 11361.1. (a) The drug education and counseling (2) Unlawful possession of a device, contrivance, requirements under Sections 11357, 11358, 11359, and instrument, or paraphernalia used for unlawfully smoking 11360 shall be: marijuana, in violation of Section 11364, as it existed (1) Mandatory, unless the court finds that such drug prior to January 1, 1976, or a statutory predecessor education or counseling is unnecessary for the person, or thereof. that drug education or counseling program is unavailable, (3) Unlawful visitation or presence in a room or place in (2) Free to participants, and the drug education provides which marijuana is being unlawfully smoked or used, in at least four hours of group discussion or instruction based violation of Section 11365,as it existed prior to January 1, on science and evidence-based principles and practices 1976, or a statutory predecessor thereof. specific to the use and abuse of marijuana and other (4) Unlawfully using or being under the influence of controlled substances. marijuana, in violation of Section 11550, as it existed (b) For good cause, the court may grant an extension of prior to January 1, 1976, or a statutory predecessor time not to exceed 30 days for a person to complete the thereof. drug education and counseling required under Any person subject to an arrest or conviction for those Sections 11357, 11358, 11359, and 11360. offenses may apply to the Department of Justice for SEC. 8.6. Section 11361.5 of the Health and Safety destruction of records pertaining to the arrest or conviction • Code is amended to read: if two or more years have elapsed since the date of the conviction,or since the date of the arrest if not followed by 11361.5. Destruction of Arrest and Conviction Records; a conviction. The application shall be submitted upon a Procedure; Exceptions. form supplied by the Department of Justice and shall be 206 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED accompanied by a fee, which shall be established by the than two years have elapsed from the date of the conviction • department in an amount which will defray the cost of or arrest without conviction. administering this subdivision and costs incurred by the SEC. 8.7. Section 11361.8 is added to the Health and state under subdivision (c), but which shall not exceed Safety Code, to read: thirty-seven dollars and fifty cents ($37.50). The application form may be made available at every local 11361.8. (a) A person currently serving a sentence fora police or sheriff's department and from the Department of conviction, whether by trial or by open or negotiated plea, Justice and may require that information which the who would not have been guilty of an offense, or who would department determines is necessary for purposes of have been guilty of a lesser offense under the Control, identification. Regulate and Tax Adult Use of Marijuana Act had that act The department may request,but not require,the applicant been in effect at the time of the offense may petition for a to include a self-administered fingerprint upon the recall or dismissal of sentence before the trial court that application. If the department is unable to sufficiently entered the judgment of conviction in his or her case to identify the applicant for purposes of this subdivision request resentencing or dismissal in accordance with without the fingerprint or without additional fingerprints, it Sections 11357, 11358, 11359, 11360, 11362.1, shall so notify the applicant and shall request the applicant 11362.2, 11362.3, and 11362.4 as those sections have to submit any fingerprints which may be required to effect been amended or added by that act. identification, including a complete set if necessary, or, (b) Upon receiving a petition under subdivision (a), the alternatively, to abandon the application and request a court shall presume the petitioner satisfies the criteria in refund of all or a portion of the fee submitted with the subdivision (a) unless the party opposing the petition application, as provided in this section. If the applicant proves by clear and convincing evidence that the petitioner fails or refuses to submit fingerprints in accordance with does not satisfy the criteria. If the petitioner satisfies the the department's request within a reasonable time which criteria in subdivision(a), the court shall grant the petition shall be established by the department, or if the applicant to recall the sentence or dismiss the sentence because it requests a refund of the fee,the department shall promptly is legally invalid unless the court determines that granting mail a refund to the applicant at the address specified in the petition would pose an unreasonable risk of danger to the application or at any other address which may be public safety. specified by the applicant. However, if the department has (1) In exercising its discretion, the court may consider, notified the applicant that election to abandon the but shall not be limited to evidence provided for in application will result in forfeiture of a specified amount subdivision (b)of Section 1170.18 of the Penal Code. which is a portion of the fee, the department may retain a portion of the fee which the department determines will (2) As used in this section, "unreasonable risk of danger defray the actual costs of processing the application, to public safety" has the same meaning as provided in provided the amount of the portion retained shall not subdivision (c)of Section 1170.18 of the Penal Code. exceed ten dollars ($10). (c)A person who is serving a sentence and is resentenced Upon receipt of a sufficient application,the Department of pursuant to subdivision (b) shall be given credit for any Justice shall destroy records of the department, if any, time already served and shall be subject to supervision for pertaining to the arrest or conviction in the manner one year following completion of his or her time in custody prescribed by subdivision (c) and shall notify the Federal or shall be subject to whatever supervision time he or she Bureau of Investigation,the law enforcement agency which would have otherwise been subject to after release, arrested the applicant, and, if the applicant was convicted, whichever is shorter, unless the court, in its discretion, as the probation department which investigated the applicant part of its resentencing order, releases the person from and the Department of Motor Vehicles, of the application. supervision. Such person is subject to parole supervision (c) Destruction of records of arrest or conviction pursuant under Section 3000.08 of the Penal Code or post-release to subdivision (a) or (b) shall accomplished by community supervision under subdivision (a) of a permanent obliteration of all entries notations upon the Section 3451 of the Penal Code by the designated agency and the jurisdiction of the court in the county in which the records pertaining o the arrest or conviction, and the offender is released or resides, or in which an alleged record shall be prepared again so that it appears that the arrest conviction never occurred. However, where(1)the violation of supervision has occurred, for the purpose of only entries upon the record pertain to the arrest or hearing petitions to revoke supervision and impose a term conviction and (2) the record can be destroyed without of custody. necessarily effecting the destruction of other records, then (d) Under no circumstances may resentencing under this the document constituting the record shall be physically section result in the imposition of a term longer than the destroyed. original sentence, or the reinstatement of charges (d) Notwithstanding subdivision (a) or (b), written dismissed pursuant to a negotiated plea agreement. transcriptions of oral testimony in court proceedings and (e) A person who has completed his or her sentence for a published judicial appellate reports are not subject to this conviction under Sections 11357, 11358, 11359, and section. Additionally, no records shall be destroyed 11360, whether by trial or open or negotiated plea, who pursuant to subdivision(a)if the defendant or a codefendant would not have been guilty of an offense or who would have has filed a civil action against the peace officers or law been guilty of a lesser offense under the Control, Regulate enforcement jurisdiction which made the arrest or and Tax Adult Use of Marijuana Act had that act been in instituted the prosecution and if the agency which is the effect at the time of the offense, may file an application custodian of those records has received a certified copy of before the trial court that entered the judgment of the complaint in the civil action, until the civil action has conviction in his or her case to have the conviction finally been resolved. Immediately following the final dismissed and sealed because the prior conviction is now • resolution of the civil action, records subject to subdivision legally invalid or redesignated as a misdemeanor or (a) shall be destroyed pursuant to subdivision (c) if more infraction in accordance with Sections 11357, 11358, Text of Proposed Laws 1 207 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED • 11359, 11360, 11362.1, 11362.2, 11362.3, and stalks,exeepttFie resin erflowerimgtops extraeted produced 11362.4 as those sections have been amended or added therefrom, fiber, by that act. eerripememt of the seed, of the plarit that (f) The court shall presume the petitioner satisfies the germination• criteria in subdivision (e) unless the party opposing the (b) The possession, use, purchase, sale, cultivation, application proves by clear and convincing evidence that processing,manufacture,packaging,labeling,transporting, the petitioner does not satisfy the criteria in subdivision(e). storage, distribution, use and transfer of industrial hemp Once the applicant satisfies the criteria in subdivision (e), shall not be subject to the provisions of this division or of the court shall redesignate the conviction as a misdemeanor Division 10 (commencing with Section 26000) of the or infraction or dismiss and seal the conviction as legally Business and Professions Code, but instead shall be invalid as now established under the Control, Regulate and regulated by the Department of Food and Agriculture in Tax Adult Use of Marijuana Act. accordance with the provisions of Division 24(commencing (g) Unless requested by the applicant, no hearing is with Section 81000) of the Food and Agricultural Code, necessary to grant or deny an application filed under inclusive. subdivision (e). SEC. 9.2. Section 81000 of the Food and Agricultural (h) Any felony conviction that is recalled and resentenced Code is amended to read: under subdivision (b) or designated as a misdemeanor or 81000. Definitions. infraction under subdivision (f) shall be considered a misdemeanor or infraction for all purposes. Any For purposes of this division, the following terms have the misdemeanor conviction that is recalled and resentenced following meanings: under subdivision (b)or designated as an infraction under (a) "Board" means the Industrial Hemp Advisory Board. subdivision (f) shall be considered an infraction for all purposes. (b) "Commissioner" means the county agricultural (i) If the court that originally sentenced the petitioner is commissioner. •' not available, the presiding judge shall designate another (c) "Established agricultural research institution" means judge to rule on the petition or application. (j) Nothing in this section is intended to diminish or abrogate any rights or remedies otherwise available to the ."`"ar'�� "'__'m`-ers. any institution that is either. petitioner or applicant. (k) Nothing in this and related sections is intended to A public or private institution organization that maintains land or facilities for agricultural research, diminish or abrogate the finality of judgments in any case ma not falling within the purview of the Control, Regulate and including colleges, universities, agricultural research Tax Adult Use of Marijuana Act. centers, and conservation research centers; or (i) A resentencing hearing ordered under the Control, institution of higher education (as defined in Se Regulate and Tax Adult Use of Marijuana Act shall Section 10 of the Higher Education Act of 1965 1 constitute a `post-conviction release proceeding" under (20 U.S.C. 001)) that grows, cultivates or manufactures paragraph (7) of subdivision (b) of Section 28 of Article I Industrial hemp for purposes of research conducted under of the California Constitution (Marsy's Law). an agricultural pilot program or other agricultural or academic research. (m) The provisions of this section shall apply equally to (d) "Industrial hem has the same meaning as that term juvenile delinquency adjudications and dispositions under p., g Section 602 of the Welfare and Institutions Code if the is defined in Section 11018.5 of the Health and Safety juvenile would not have been guilty of an offense or would Code. have been guilty of a lesser offense under the Control, (e) "Secretary" means the Secretary of Food and Regulate and Tax Adult Use of Marijuana Act. Agriculture. (n) The Judicial Council shall promulgate and make (f) "Seed breeder" means an individual or public or private available all necessary forms to enable the filing of the institution or organization that is registered with the petitions and applications provided in this section. commissioner to develop seed cultivars intended for sale SEC. 9. Industrial Hemp. or research. SEC. 9.1. Section 11018.5 of the Health and Safety (g) "Seed cultivar" means a variety of industrial hemp. Code is amended to read: (h) "Seed development plan" means a strategy devised by 11018.5. Industrial Hemp. a seed breeder, or applicant seed breeder, detailing his or (a) "Industrial hemp" means a fiber or oilseed crop, or her planned approach to growing and developing a new both, that is limited to mompsyeheaetive types of the plant seed cultivar for industrial hemp. Cannabis sativa L. and the seed produeed therefroni, SEC. 9.3. Section 81006 of the Food and Agricultural having no more than three-tenths of 1 percent Code is amended to read: tetrahydrocannabinol (THC) contained in the dried 81006. Industrial Hemp Growth Limitations' flowering tops, whether growing or not; and prat 05 Prohibitions; Imports; Laboratory Testing. (a) (1) Except when grown by an established agricultural from the stalks, eil or eake made frorn the seeds of the research institution or a registered seed breeder, industrial plant,- the resin extracted from any part of the plant; and hemp shall be grown only as a densely planted fiber or or any everycompound, manufacture,salt,derivative, oilseed crop,or both, in acreages of not less than five aeres mixture, or preparation of the plant, its seeds or mature one-tenth of an acre at the same time 208 1 Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED aeFeage of indtlstrial hemp sHall inelude plats of less then shall indicate the date and location of samples taken, and • . shall state the Global Positioning System coordinates and (2) Registered seed breeders, for purposes of seed total acreage of the crop. If the laboratory test report production, shall only grow industrial hemp as a densely indicates a percentage content of THC that is equal to or planted crop in acreages of not less than one-tenth of an less than three-tenths of 1 percent, the words "PASSED two acres at the same time amd ma partiam of the aereage AS CALIFORNIA INDUSTRIAL HEMP" shall appear at or of industrial hermp shall inelude plots of less than ome near the top of the laboratory test report. If the laboratory test report indicates a percentage content of THC that is greater than three-tenths of 1 percent, the words "FAILED (3) Registered seed breeders, for purposes of developing a AS CALIFORNIA INDUSTRIAL HEMP" shall appear at or new California seed cultivar, shall grow industrial hemp as near the top of the laboratory test report. densely as possible in dedicated acreage of not less than (5) If the laboratory test report indicates a percentage one-tenth of an acre and in accordance with the seed content of THC that is equal to or less than three-tenths of development plan.The entire area of the dedicated acreage 1 percent, the laboratory shall provide the person who is not required to be used for the cultivation of the requested the testing not less than 10 original copies particular seed cultivar. signed by an employee authorized by the laboratory and (b) Ornamental and clandestine cultivation of industrial shall retain one or more original copies of the laboratory hemp is prohibited. All plots shall have adequate signage test report for a minimum of two years from its date of indicating they are industrial hemp. sampling. (c) Pruning and tending of individual industrial hemp (6) If the laboratory test report indicates a percentage plants is prohibited, except when grown by an established content of THC that is greater than three-tenths of 1 agricultural research institution or when the action is percent and does not exceed 1 percent, the registrant that necessary to perform the tetrahydrocannabinol (THC) grows industrial hemp shall submit additional samples for testing described in this section. testing of the industrial hemp grown. (d) Culling of industrial hemp is prohibited, except when (7) A registrant that grows industrial hemp shall destroy grown by an established agricultural research institution, the industrial hemp grown upon receipt of a first laboratory when the action is necessary to perform the THC testing test report indicating a percentage content of THC that described in this section,or for purposes of seed production exceeds 1 percent or a second laboratory test report and development by a registered seed breeder. pursuant to paragraph (6) indicating a percentage content (e) Industrial hemp shall include products imported under of THC that exceeds three-tenths of 1 percent but is less the Harmonized Tariff Schedule of the United States than 1 percent. If the percentage content of THC exceeds (2013) of the United States International Trade 1 percent,the destruction shall take place within 48 hours Commission, including, but not limited to, hemp seed, per after receipt of the laboratory test report. If the percentage subheading 1207.99.03, hemp oil, per content of THC in the second laboratory test report exceeds subheading 1515.90.80, oilcake, per three-tenths of 1 percent but is less than 1 percent, the subheading 2306.90.01, true hemp, per heading 5302, destruction shall take place as soon as practicable, but no true hemp yarn, per subheading 5308.20.00, and woven later than 45 days after receipt of the second test report. fabrics of true hemp fibers, per subheading 5311.00.40. (8) A registrant that intends to grow industrial hemp and (f) Except when industrial hemp is grown by an established who complies with this section shall not be prosecuted for agricultural research institution, a registrant that grows the cultivation or possession of marijuana as a result of a industrial hemp under this section shall, before the harvest laboratory test report that indicates a percentage content of each crop and as provided below, obtain a laboratory of THC that is greater than three-tenths of 1 percent but test report indicating the THC levels of a random sampling does not exceed 1 percent. of the dried flowering tops of the industrial hemp grown. (9) Established agricultural research institutions shall be (1) Sampling shall occur as soon as practicable when the permitted to cultivate or possess industrial hemp with a THC content of the leaves surrounding the seeds is at its laboratory test report that indicates a percentage content peak and shall commence as the seeds begin to mature, of THC that is greater than three-tenths of 1 percent if that when the first seeds of approximately 50 percent of the cultivation or possession contributes to the development of plants are resistant to compression. types of industrial hemp that will comply with the three- tenths of 1 percent THC limit established in this division. (2) The entire fruit-bearing part of the plant including the (10) Except for an established agricultural research seeds shall be used as a sample. The sample cut shall be institution a registrant that grows industrial hemp shall made directly underneath the inflorescence found in the retain an original signed copy of the laboratory test report top one-third of the plant. for two years from its date of sampling, make an original (3) The sample collected for THC testing shall be signed copy of the laboratory test report available to the accompanied by the following documentation: department,the commissioner,or law enforcement officials (A) The registrant's proof of registration. or their designees upon request, and shall provide an (B) Seed certification documentation for the seed cultivar original copy of the laboratory test report to each person used. purchasing, transporting, or otherwise obtaining from the registrant that grows industrial hemp the fiber, oil, cake,or (C) The THC testing report for each certified seed cultivar seed, or any component of the seed, of the plant. used. (g) If, in the Attorney General's opinion issued pursuant to (4) The laboratory test report shall be issued by laboratory Section 8 of the act that added this division, it is registered with the federal Drug Enforcement determined that the provisions of this section are not Administration, shall state the percentage content of THC, sufficient to comply with federal law, the department, in Text of Proposed Laws 1 209 J TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINUED • consultation with the board, shall establish procedures for that are in addition to the protections provided for in this this section that meet the requirements of federal law. act or that otherwise expand the legal rights of such SEC. 9.4. Section 81007 of the Food and Agricultural employees or workers of licensees under Sections 6 to 6.3, Code is repealed. inclusive, of this act shall be deemed to be consistent with and further the purposes and intent of this act. The Legislature may by majority vote amend,add, or repeal any provisions to further reduce the penalties for any of the offenses addressed by this act. Except as otherwise provided, the provisions of the act may be amended by a two-thirds vote of the Legislature to further the purposes and intent of the act. SEC. 11. Construction and Intepretation. The provisions of this act shall be liberally construed to � 7 effectuate the purposes and intent of the Control, Regulate and Tax the Adult Use of Marijuana Act; provided;however, SEC. 9.5. Section 81008 of the Food and Agricultural no provision or provisions of this act shall be interpreted or Code is amended to read: construed in a manner to create a positive conflict with 81008. Attorney General Reports; Requirements. federal law, including the federal Controlled Substances (a) Not later than January 1, 2019, or five years after the Act, such that the provision or provisions of this act and federal law cannot consistently stand together. �hie`ever as 'ater, the Attorney General shall report to the SEC. 12. Severability. Assembly and Senate Committees on Agriculture and the If any provision in this act,or part thereof,or the application Assembly and Senate Committees on Public Safety the of any provision or part to any person or circumstance is reported incidents, if any, of the following: held for any reason to be invalid or unconstitutional, the (1) A field of industrial hemp being used to disguise remaining provisions and parts shall not be affected, but marijuana cultivation. shall remain in full force and effect, and to this end the (2) Claims in a court hearing by persons other than those provisions of this act are severable. exempted in subdivision (f) of Section 81006 that SEC. 13. Conflicting Initiatives. marijuana is industrial hemp. In the event that this measure and another measure or (b) A report submitted pursuant to subdivision (a)shall be measures concerning the control, regulation, and taxation submitted in compliance with Section 9795 of the of marijuana, medical marijuana, or industrial hemp Government Code. appear on the same statewide election ballot,the provisions (c) Pursuant to Section 10231.5 of the Government Code, of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure this section is repealed on January 1, 2023, or four years after the date that the report is due, whichever is later. receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, SEC. 9.6. Section 81010 of the Food and Agricultural and the provisions of the other measure shall be null and Code is amended to read: void. 81010. Operation of Division. (a) This division, and Section 221 shall fret become PROPOSITION 65 operative tinlessautherized timderfedera on January 1, This initiative measure is submitted to the people in 2017. accordance with the provisions of Section 8 of Article II of (b) The possession, use, purchase, sale, production, the California Constitution. manufacture, packaging, labeling, transporting, storage, This initiative measure adds sections to the Public distribution, use, and transfer of industrial hemp shall be Resources Code; therefore, new provisions proposed to be regulated in accordance with this division. The Bureau of added are printed in italic type to indicate that they are Marijuana Control has authority to regulate and control new. plants and products that fit within the definition of industrial hemp but that are produced, processed, PROPOSED LAW manufactured, tested, delivered, or otherwise handled pursuant to a license issued under Division10(commencing SECTION 1. Title. with Section 26000) of the Business and Professions This act shall be known and may be cited as the Code. Environmental Fee Protection Act. SEC. 10. Amendment. SEC. 2. Findings and Declarations. This act shall be broadly construed to accomplish its The people of the State of California find and declare as purposes and intent as stated in Section 3.The Legislature follows: may by majority vote amend the provisions of this act (a) In 2014, the California State Legislature enacted a contained in Sections 5 to 5.5, inclusive, and Sections 6 those sections,, provided that such amendments are implement the substantive provisions ban on plastic carryout bags after lobbying by special of those to inclusive, interests including the California Grocers Association. consistent with and further the purposes and intent of this (b) The law further mandated that stores sell every paper • act as stated in Section 3. Amendments to this act that or reusable carryout bag they provide to consumers for a enact protections for employees and other workers of minimum of 10 cents. Stores can charge even more if they licensees under Sections 6 to 6.3, inclusive, of this act so choose, and the grocers and retailers are specifically 210 1 Text of Proposed Laws u n e Ir ' I Iwo Weils �*]/ten_ Y _ .. .. 3 .. 0 ';i •,,.gym _ ..».,,..,.o. ..�,.,: e'w.. "ovr?`, o �''�� an,.0 e >.w rr. t0g°jam y r� C '„w,,,,,,r, .x�,r. •s � .. ,,., ..w.r r�.f . :•P ,y •'M Jai, v.r 4 `' G> f « s C7 �eTAW POTENTIAL CANNIBIS LOCATIONS PERMITTED PROHIBIT Retail Testing - School/Child Care/Youth Center Parcels 71 °wronMA1'� Date. -Testing,Cultivation,Manufacturing, Distribution&Delivery 600'Buffer 8/2017 City Boundary Vicinity Map CITY OF SANTA ANA, CALIFORNIA INDEPENDENT ACCOUNTANTS' REPORT ON RANDOM SELECTION (LOTTERY) PROCESS CONDUCTED UNDER THE PROVISIONS OF MEASURE BB FEBRUARY 12, 2015 INDEPENDENT ACCOUNTANTS' REPORT ON RANDOM SELECTION (LOTTERY)PROCESS CONDUCTED UNDER THE PROVISIONS OF MEASURE BB City of Santa Ana Santa Ana, California Background -Sole Provision of Measure BB Related to this Engagement Section 18-617.01 of Measure BB requires the City's Director of Planning and Building (the Director) to issue, review and approve registration applications forms for operating Medical Marijuana Cooperatives/Collectives within the City. This section states in part: "Once all applications are processed, the Director shall hold a "lottery" process in an open and public location and select 20 applications". On this engagement, the City has subcontracted the Random Selection (Lottery) Process to our firm. This is our firm's sole involvement with the Measure BB process. Qualifications of Our Firm The Random Selection (Lottery)Process was planned and conducted by a Principal in our firm's Irvine office. He was licensed in California in 1970, and has 48 years of experience in Public Accounting. The Principal supervised three WNDE professionals during the Random Selection(Lottery)Process. Procedures for Random Selection (Lottery) Process Our Firm's Due Diligence and Advanced Procedures In advance of the Random Selection (Lottery) Process, we performed the due diligence and advanced procedures noted below: • We reviewed certain guidelines and standards for conducting lotteries, as published by the North American Association of State and Provincial Lotteries (NASPL), an organization whose members consist of all state lotteries in the U.S. and Canada (including the California Lottery), solely to determine the equipment needed to conduct a Lottery with over 600 applicants. • We reviewed prospective vendors of lottery equipment. We purchased a manually-operated raffle drum, and 1,000 ping pong balls, laser printed with numbers from 1 to 1,000. This equipment was delivered directly to our firm. 2875 Michelle Drive,Suite 300,Irvine,CA 9J606 •Tel: 714.978.1300•Fax: 714.978.7893 Officer located in Orange and San Diego Counties Procedures for Random Selection (Lottery)Process (Continued) Our Firm's Due Diligence and Advanced Procedures(Continued) • After City officials had issued, reviewed and approved all applications, we obtained the City's "Qualified Registration List", and assigned random lottery numbers to each applicant using special software. Control Procedures Performed by Our Firm on the Day of the Random Selection (Lottery)Process On the day of the Random Section (Lottery) Process, February 5, 2015, we performed the following control procedures in connection with the random selection process: 1. The City's Qualified Registration List had a total of 627 applications approved for the Random Selection (Lottery) Process. We obtained the City's Qualified Registration List distributed during the Random Selection (Lottery) Process and verified that the "Lottery Numbers" assigned to each applicant agreed with the random numbers assigned by our firm. 2. Prior to arrival at City Hall,two WNDE professional staff members accounted for all ping pong balls from numbers 1 through 627, placed the balls in bags of 50 each, and signed each bag as to the number of balls in each bag 3. Upon arrival at the City Council Chambers,the raffle drum was setup and installed. 4. The ping pong balls were then loaded into the raffle drum using the following control procedures: • The Principal and three WNDE professional staff members opened each bag of 50 balls. • Each ball was individually placed in the raffle drum under the observation of all four of WNDE's professional personnel. • A written record was made of each ball placed in the drum. • At the end of the procedure, all four WNDE personnel signed a form, representing and attesting that all had personally observed the loading process, and that the raffle drum contained 627 balls numbered from 1 to 627. 5. The Principal presented introductory comments to the attendees using a PowerPoint slide presentation, including an explanation of the control and random selection procedures. 6. Each ball was drawn by the Principal by reaching into the raffle drum, without looking at the ball number drawn. Each selection was announced verbally and the number was simultaneously projected on an overhead screen. 7. The raffle drum was rotated by a WNDE professional staff member between each draw. 2 Procedures for Random Selection (Lottery)Process (Continued) f Control Procedures Performed by Our Firm on the Day of the Random Selection (Lottery) Process (Continued) 8. A record of the order each ball was drawn was made by two WNDE professional staff members and separately by a City official. At the end of the drawing, all three parties confirmed the order in which the balls were drawn, that all 627 balls had been drawn from the raffle drum, and that no ball numbers had been duplicated. 9. A copy of the final results was transmitted to City officials by hard copy and e-mail. Conclusion The final results of the Random Selection(Lottery)Process are included herein at Attachment I. Regarding the Random Selection (Lottery) Process, we have applied the highest levels of integrity, ethics and trust under the guidelines and principles of the American Institute of Certified Public Accountants (AICPA). No City of Santa Ana employee or elected official provided any guidance or direction on how to conduct the Random Selection (Lottery) Process. In connection with the services provided to the City under this contract, we have concluded that the Random Selection (Lottery) Process, as conducted on February 5, 2015,was random, independent, objective and unbiased. /Wk J �iP Irvine, California February 12,2015 3 • 1 echattanooga Triton DTS Advanced SCRIPS HESSCO . 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Visit our website for additional orthotics. delivers up to 30 minutes of soothing relief Rocksauce Chill relieves pain with 6%Menthol that provides a 722-0162 Full Length $36.99 $25.89 Visit our website for additional sizes. cooling Sensation. 722-0163 3/4 Length $33-.99 $23.79 232-0005 Standard,11"x 14" $19'"1 $12.24 722-0180 Dananberg 1 st Ray $40:99 $28.69 232-0003 Neck Contour,23" Si943 $13.64 ce - SY3 E8 S62 91 i.Prior Sports $36:99 $25.89 232-0004 Oversize,11"x 21" $31 89 $22.32 •F nded SlimF'rt $36-99 $25.19 232-0027 Black,Standard,10"x 13" $20:99 $14.69 110% Price Match Guarantee 7i-:.�. r� 41 C * ty o Palm Springs Office of the Cite Attorney F.Tahq i ais u v; PYalsn Spriap,C;ahfiimia 9226-7 .: T6_ "v.32;.�s:E?5 • Fax �x .3?2.�333? Tl i 7 tD? .9a + 27 x rw ttx�� arcA� sta. o4 VIA NAND DELIVERY Rau t1-Gi'c- December 7, 2017 Ms. -u ie Montante Paairn Springs Associated Organica 400 E. Sonny Dunes Pafir�^^;nrs California 92262 Re: Cannabis Related Businesses and Activities Permit Application Cast No. C-2017-004 Dear Ms. Vontante, Congratuiations on the City's issuance of your cannabis related businesses and activities permit, and thank you for choosing to do business in the City of Palm Springs. As you know, recent Ordinances 1933 and 1935 allowed you to secure this permit, and commence operations at such point in time when you have secured all necessary City approvals. As you know, your operations pursuant to this permit are only lawful to the extent that they are consistent with all applicable State law, and you are specifically admonished that the adult-use permit now issued may not be used or reited upon by you until State law allows. Please be advised that the permit now issued applies and remotes only to your dispensary located on E. Sunny Dunes, and does not represent a new permit fo-operations or business at any other location in the City of Palm Springs that you have opened in reticr,to your long-standing permit under Chapter 5.35 of the municipal code. Particu arty, with the issuance of your permit for a medical cannabis dispensary and adult use dispensary, your operations at Sunny Dunes are subject to the following conditions pursuant to 5.45.095 and 5.55.095: • The dispensary must and will comply with all the requirements of the State and City to operate; • The dispensary complies with the locational requirements of the Zoning Ordinance; • The dispensary will not result in significant unavoidable impacts on the environment; • The dispensary includes adequate measures that minimize nuisances to the immediate neighborhood and community including minimizing the detection of odor from offsite, loitering, adequate security measures and not exceeding the Land Use Permit's limits on hours of operation; • The dispensary will provide adequate measures that address the federal enforcement priorities for cannabis activities; and Post Office Bcx 2743 • Palm Springs,California 92263.2743 Ms. Julie Monante Palm Springs Associated Organica December 7, 2017 Page 12 The dispensary shall allow access to the dispensary facilities and records if requested by the City and shall pay for an annual inspection in an amount determined by City Council Resolution. Further, for the dispensary facility and you {since you have a financial interest in the dispensary facility} shall indemnify, defend and hold the City harmless from any and all claims and proceedings relating to the approval of the permit relating to any damage to property or persons stemming from the cannabis business activity. Lastly, you must provide to the City within thirty (30) days of issuance of your City permit, your seller's permit number_ As a reminder, you are still bound to pay the City's permit fees, once they are made public, pursuant to the documentation that you filed with your application. If you have any questions regarding the terms and provisions of the issuance of your permit, please feel free to contact me. Very Truly Yours, THE CITY OF PALM SPRINGS Edward Z. Kotkin City Attorney EZK:vg Pc czt_Office Box 2743 = Palm Springs,Califomia 92263-2743 CITY OF PALM SPRINGS CANNABIS RELATED BUSINESSES AND ACTIVITIES PERMIT 3200 E TAHQUITZ CANYON WAY,PALM;SPiUNGS„CALIFORNIA 92262(760)323-8239 THIS PERMIT CERTIFIES THAT: PALM SPRINGS.ASSOCIATED QRGANI CA. Approved for and by the authority.of the Ctty Martagei of the C1ty of Palm Springs, Project Address: 400 E, Sunny Dunes; Palm Springs,-California 92262 caner ame: Julie Montante053 �? pr�e�,; 760) 7,'1 Has been granted a PERMIT to operate the foilowih4 businesees under CH'Ordinance No. 1933, otherwise known as the RELATED AND BUSINESSES AND ACTIvmES OR6*14 QEC, tf;fhe City of Palm Springs, subject to the provisions o other pertinent laws, ordinances and related administrative regulations. ro 5.45.095/5.55.095 Dispensary ❑ 5.45.096/5.55.096 Cultivation ( 1 5.45.097/5,55.097 Manufacturing ❑ Type 1 Specialty Outdoor ❑ 5.45.098/5.55.098 Testing Facility ❑ Type 1A Specialty Indoor ($� 5.45.099/5.55.099 Transportation and ❑ Type 1 B Specialty Mixed Light Distribution ❑ Type 2 Small Outdoor ❑ Type 2A Small Indoor x ❑ Type 3 Outdoor ❑ Type 3A Indoor ❑ Type 3B Mixed Light ❑ Type 4 Nursery Description: Premises where medical and adult cannabis products and devices for the use of medical and adult use cannabis or cannabis products are offered for retail sale. ff this 71h day of December , 2017. Application Case No.: C-2017-011 City Manager 11/9/2017 Law section lilt LEGISLATIVE INFORMATION Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Code: Select Code • Section: Search d UDA << Previous Next>> cross-reference chaotered bills PDF I Add To My Favorites Highlight HEALTH AND SAFETY CODE-HSC DIVISION 10.UNIFORM CONTROLLED SUBSTANCES ACT[11000-11651] (Division 10 repealed and added by Stats. 1972, Ch. 1407.) CHAPTER 1.General Provisions and Definitions[11000-11033] (Chapter 1 added by Stats. 1972, Ch. 1407,) 11018.5. (a) "Industrial hemp"means a fiber or oilseed crop, or both, that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of 1 percent tetra hydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom. (b) Industrial hemp shall not be subject to the provisions of this division or of Division 10 (commencing with Section 26000) of the Business and Professions Code, but instead shall be regulated by the Department of Food and Agriculture in accordance with the provisions of Division 24 (commencing with Section 81000) of the Food and Agricultural Code, inclusive. (Amended by Stats. 2017, Ch. 27, Sec. 118. (SB 94) Effective June 27, 2017. Note: This section was amended on Nov. 8, 2016, by initiative Prop. 64.) http://Ieginfo.legislature.ca.gov/faces/codes_displaySection.xhtmPsectionNum=11018.5.&IawCode=HSC 1/1 ORDINANCE NO.: 1329 Exhibit "A" PDMC SECTION: 25.34.120 — Commercial Cannabis Business and Personal Cultivation A. Purpose and Intent It is the purpose and intent of this section to regulate the commercial cultivation, manufacturing, testing and research, distribution, delivery, retail sale and personal cultivation, of medicinal cannabis and non-medicinal adult-use cannabis within the City of Palm Desert. This section is prepared in accordance with the Compassionate Use Act of 1996 ("CUX), the Medical Marijuana Program Act ("MMP"), and the Medicinal and Adult- Use Cannabis Regulation and Safety Act ("MAUCRSA") (collectively, "State law"), which give local jurisdictions the authority to establish land use regulations related to the personal and commercial uses of cannabis. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis beyond the limits established in state law related to cannabis, or (3) permit any activity relating to the cultivation, processing, sale, or distribution of cannabis that is illegal under state law, generally. Nothing in this chapter shall be construed to prohibit primary caregivers and qualified patients to lawfully act under State law. B. Definitions For the purpose of this chapter, the following definitions shall apply: "Applicant" means an owner that applies for a conditional use permit under this chapter. "Cannabis" means all parts of the plant 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 cannabis. "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 division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. "Cannabis products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. "City" means the City of Palm Desert. Suggested Priority Criteria Palm Desert Cannabis Licenses �•1 Does the Applicant or one or more of its owners, own the premises for the facility? Applicant or a majority of the ownership have owned a home in Palm Desert since January 1, 2015? C• ) Applicant or one or more of its owners have owned another business in Palm Desert since January 1, 201,,5? • To the extent multiple applicants meet these criteria, preference will be given to the longevity and size of existing Palm Desert investments of the applicant or its ownership. ado r �— * C 3) ' ��wttitvni� �nch� (c[S) � i3� 7✓��'K..I.�IL (��J! rc�n/c.-Jk tw-.� �/VSl.9L 1L...�..1��y'Sce�o,.�r.,.1.h �p-a/-cLo,.� .a..r-b""—s� r.�wx��.'.� 4tl(, ��.� 1 v(!�•r� rY (aefil '+�IOK'�rt IIi�, �LJ{-�✓�wh..' O�'l�a+ Oc`�/ /��.r��J i�Y� K+^"'r) CCI� O� cI(S�✓X/f�Gt'W� Email Confirmation from California Department of Consumer Affairs Bureau of Cannabis Control From: "Colson, Tamara@DCA" <Tamara.Colson @dca.ca.gov> Date: August 16, 2017 at 3:53:45 PM PDT To: Amy Jenkins<asj@platinumadvisors.com> Subject: RE: 600 foot radius requirement Hi Amy. Thanks for checking. From:Amy Jenkins [mailto:asj@platinumadvisors.com] Sent: Friday,August 11, 2017 8:34 AM To: Colson, Tamara@DCA<Tamara.Colson@dca.ca.gov>;Ajax, Lori@DCA <Lori.Aiax@dca.ca.gov> Subject: 600 foot radius requirement Good morning, Quick question.... I'm getting a number of questions involving the 600-foot radius requirement. From what I understand, this requirement is subject to the discretion of the local jurisdictions and is not something that will be enforced by the licensing entities. So, if the local government authorizes an operator to conduct commercial cannabis activity in a location that is less than 600 feet from a school, etc. they have the discretion to do that, correct? Secondarily, if that authorization is granted by the local government, it is not the licensing entities intent to deny the issuance of a state license on those grounds, yes? Any guidance you can provide would be most appreciated. I'm speaking to a number of groups over the next few weeks and want to make sure I'm not misrepresenting the intent of the statute. Thanks so much! Hope you both have a great weekend. Best, Amy SB 94 (Chapter 27) SEC. 38. Section 26054 of the Business and Professions Code is amended to read: 26054. (b) A premises licensed under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued, Health & Safety Code Section 11353.1: "Youth center" means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. IRA OR BEST BEST & KRIEGER ATTORNEYS AT LAW Memorandum To: Ryan Stendell Eric Ceja From: Jill Tremblay Date: October 3, 2017 Re: Commercial Cannabis Businesses - Criteria and Ranking Systems I. Priority Status • Long Beach allows medical marijuana dispensary applicants that have previously been in operation to have "the priority right to apply for a Medical Dispensary Business License Permit." Long Beach Municipal Code, § 5.90.070. • Oakland prioritizes residents, requiring that applicants have residency in the city for no less than 2 years and maintain no less than a 50% ownership in the business. Oakland Municipal Code, § 5.80.045. II. Ranking/Point System • Berkeley uses a multiple round ranking process. The first round looks at eligibility (complete application, background checks, pass `Medical Cannabis competency test'). The second round looks at: �«� ,Clore— efI-% o proposed location(s); o business plan; o neighborhood compatibility plan; and o safety and security plan. The third round provides applicants with bonus points for o availability of professional services; o community benefits; o enhanced product safety; o environmental benefits; o labor and employment; o local enterprise; 72500.00000\30201865.1 t IDel k BEST BEST & KRIEGER ATTORNEYS AT LAW o location; o qualifications of principals; and o consolidation. • Long Beach uses a point system to push some applicants to the top of the pile. These points are award based on the: o suitability of the proposed property, o suitability of the security plan, o suitability of business plan and financial record keeping; o existence of criminal history of the applicant; o regulatory compliance history; and (6) labor relations. Long Beach Municipal Code, § 5.90.070. • Richmond uses a combination of a point system with other discretionary criteria to consider. Points are awarded for o competency to operate medical dispensary and prevent diversion of cannabis to criminal market; o strength of security plan; and o provision of social or health-related benefits to the member population in addition to supplying medical marijuana. The discretionary criteria include the site location and layout, safety, and environmental impact, among other things. (http://ca-richmond2.civicplus.com/ArchiveCenterNiewFile/Item/3 3 5 8). • Hollister uses a three stage approach where it reviews medical dispensary applications for completeness, then assigns points to each application, the 8 applications with the most points then go to the City Council for review and the City Council chooses which two out of the eight get permits. o The criteria include: -2 - 72500.00000\30201865.1 I lei K BEST BEST & KRIEGER ATTORNEYS AT LAW ■ Qualifications (including residency) of the applicants, managers, and employees— 150 points ■ Comprehensive site plan and floor plan of the facility which includes the dimensions of the interior floor plan; location of all exist doors, width of doors and panic hardware; principal uses of the floor area including where non-patients will be permitted, storage areas, retails areas, areas for cash handling and storage and restricted areas. — 100 points ■ Security plan demonstrating compliance with Chapter 5.42 of the Municipal Code and this Resolution—200 points ■ Identification of companies providing security services including the company's named, address, contract information, California Business license. ■ Identification of a security liaison—name, contact information ■ Identification physical security measures ■ The medical cannabis dispensing procedures, including whether the medical cannabis dispensary will engage in the delivery of medical cannabis or medical cannabis products and the detailed delivery protocols — 100 points ■ Business Plan including financial information, revenue and expense projections, capital investment and operating reserves.— 100 points ■ Community Benefits Plan with a dedicated community liaison. —50 points ■ Plan for preference in hiring City of Hollister residents at 200% above the "living wage" for the Federal Poverty Level for a family of two. — 25 points ■ Employee manual, benefits and vacation pay plan— 100 points ■ Procedures for identifying, managing, and disposing of contaminated, adulterated, deteriorated or excess medical cannabis or medical cannabis products—50 points ■ Preference for participation in clinical or academic research seeking to understand the efficacy and adverse effects of cannabis as a pharmacological agent. —25 points - 3 - 72500.00000130201865.1 l R I lei W BEST BEST & KRIEGER ATTORNEYS AT LAW ■ Procedures for inventory control including a detailed description of inventory tracking software and procedures— 150 points ■ The odor management plan including detailed description ventilation — 150 points ■ Signage plan—25 points ■ Cash management policies and procedures—200 points ■ Policies and procedures for adopting, monitoring, implementing, and enforcing all other requirements of Chapter 5.42 of the Municipal Code — 100 points ■ Proposed development agreement with no less than Five Percent (5%) gross sales with the City—200 points III. Selection by lottery • Santa Ana used a lottery and pulled twenty names from a list of eligible applicants. Santa Ana Municipal Code, § 18-617.1. o Ordinance: http://www.ci.santa-ana.ca.us/cannabiscollectives/documents/NS- 2896.pdf o Guidelines: http://www.ci.santa- ana.ca.us/cannabiscollectives/documents/CityofSantaAna- PDFFinalReportofRandomSelectionLotteryProcess.pdf • Long Beach used a lottery and provided priority for applicants that had a history of operation in the city, combined with a point system. Long Beach Municipal Code, § 5.90.070. o Measure: https://www.municode.com/library/ca/long_beach/ordinances/municipal_code?no deld=808121 o Guidelines: http://www.longbeach.gov/finance/business-info/business- licenses/marij uana-busines s-information/medical-marij uana- information/#publiclottery cc: Bob Hargreaves - 4 - 72500.00000\30201865.1 F-�G� vZsT vgiS - �7Y'7002-VA ^+A�Ii"�h017j� /!J ' s'�o�'°v��'1•.7 cy�. T��''1 r/ �i-+�'903�/tea+ r i.'w1'�'",,'aD ,�wn^ara� /yrs t')'1 .. ��•r�do.C� .�o ��sf ,u��t`l� S��n �nl��S1A2$�� hYlb /''�l:-}��'1 li 1 ��P-r�' �a�a-�� � �i.�.naj Y✓ S'aS A �i�,�u�a I pn -��►I .� *� ') Of - q 1,4 — ` Y APPLICATION PROCEDURE TO OPERATE A MEDICAL MARIJUANA BUSINESS IN CALIFORNIA CITY The application process for a license to operate a Medical Marijuana Businesses("MMB")in California City will open on Monday October 17th,2016. Applications will be available at the Public Works Department, Planning Division located at City Hall. For questions regarding the application process please review the FAQ's, at the California City's webpage: www.Californiacity-ca.,gov. This outlines the application process, required materials, and other information necessary to operate a MMB in California City. To be considered, final applications must be submitted on Monday, by 4:00 PM on December 19th,2016 at the Public Works Department, Planning Division located at 21000 Hacienda Boulevard, California City, CA, 93505.This application process is adopted pursuant to California City Municipal Code Section 5-6.501. BEFORE YOU APPLY: ➢ Review the information to learn about the application process and which documents you will need. ➢ Review the application in its entirety to ensure that it is complete and accurate. ➢ Review the information regarding the medical marijuana business application on the webpage: www.Californiacity-ca.gov which includes the following information: • Local regulations governing California City MMB's: California City Municipal Code("CCMC") Title 5 Chapter 6. • Live Scan Form. • Additional application information:Ordinance No.16-742 • State laws governing MMB's:The California Department of Justice Guidelinesfor the Security and Non-Diversion of Marijuana Grown for Medical Use and Senate Bill 420 (Medical Marijuana Program Act). • Local Zoning Ordinance Title 9 Chapter 2 • Frequently Asked Questions (1) Application Process:.Evaluation and Ranking:The selection process shall consist of the following Four Phases: Phase 1: Preliminary determination of eligibility. $3,258.00 Phase 2: Initial ranking. $701.00 Phase 3: Second ranking. $1,790.00 Phase 4: Public Meeting and City Council Final Selection. $1,937.00 For more information,see Evaluation and Selection Process below. (2) Criminal History Check:As part of Phase 1 of the Application Process,each individual applying to be a principal of the MMB("Principal") must apply for a Live Scan criminal history check. This process must be conducted only by California City Police Department unless these procedures are amended in which case the City will post the updated procedures on the City Website.However,the Police Department will be limited to processing no more than six(6)individuals per day and applicants will be required to make an appointment in advanced to ensure that the proper CCPD staff are available to conduct this process.In addition,due to limited staff resources you are encouraged to schedule your appointment as early as possible in order complete your Live Scan requirement before the due date of the application. The City cannot guarantee that it will be able to accommodate applicants who do not get their Live Scan completed closer to the application deadline. Please be advised that there will be a Live Scan processing fee of 1 $78.00 per person which must be paid at the time of the Live Scan.The Live Scan process involves submitting fingerprints to the DOJ/FBI, which will review for criminal offender record information (CORI). CORI reports will be provided to California City for the sole purpose of determining eligibility for operating a MMB. See CCMC Chapter 5-6.906(m)for background check requirements. Principals who do not meet criminal history eligibility requirements will be disqualified. (3) Applicants will be required to obtain a "Zoning Verification Letter"from the Public Works Department, Planning Division in City Hall, located at 21000 Hacienda Boulevard, in California City in order to ensure that the location proposal the applicant is applying for meets locational requirements prior to submitting their MMB application.The review process typically takes approximately ten (10)working days and cost$250.00.The "Zoning Verification Letter" will need to be included with the application package. Please note the issuance of a "Zoning Verification Letter" does not mean the written evidence of permission given by California City or any of its officials to operate a MMB, nor does it not mean "permit" within the meaning of the Permit Streamlining Act, nor does it constitute an entitlement under the Zoning or Building Code.A regulatory permit for the purpose of regulating a MMB does not constitute a permit that runs with the land on which the MMB is established. Request for Zoning Verification Letters require a written request to the Public Works Department, Planning Division and will not be completed over the counter since it may require additional research and review. (4) Application:Applicants must hand deliver two(2)complete comprehensive and signed copies of the California City Medical Marijuana Business Application Form,and all attachments,if any,along with a flash drive which contains one comprehensive and signed copy of the application in a pdf format,and payment of$3,258.00 for the initial application fee by 4:00 PM on Monday December 19th,2016.Payment must be made by a certified check,cashier's check or money order made payable to"California City".Please note the City will not accept cash and Application Fees are non-refundable. A complete application will consist of the following information: a. The California City Medical Marijuana Business Application Form; b. Proof of Live Scan payment for each of the Principals; c. Zoning Verification Letter;and d. All of the information about the MMB to be evaluated in Phase 1,Phase 2 and Phase 3 which is described in the Application and Evaluation Process section below in this procedure.The only information that can be submitted after the initial application is proof of property ownership or lease agreement. However,any change in location will require a new"Zoning Verification Letter"and must be submitted with the application package prior to Phase 3 of the selection process.Please note that should you choose to submit a different location priorto Phase 3 you can only do so if your initial proposed site was eligible as part of your original application package submitted on December 19th,2016. LATE AND INCOMPLETE APPLICATIONS WILL NOT BE CONSIDERED. (5) Medical Cannabis Expertise Examination:The City at its sole discretion may require one Principal from each application to take and pass the Medical Cannabis Expertise Examination. The test may be administered for the top thirty(30)cultivation permit applicants and the top ten(10)finalists for each of the other permitted categories to award up to twenty-five(25)additional bonus points.The examination will test the applicant's familiarity with the California City Ordinance,the Medical Marijuana Regulation and Safetiy Act,California Law related to medical cannabis,the Attorney General's Guidelines on Medicinal Cannabis and subsequently any new marijuana laws which may go into effect prior to this examine. This Optional Phase 2A would be taken prior to the scheduling of interviews for Phase 3, should the City deem it necessary. ( 6 ) Amendments to the Application:Applicants will not be allowed to make amendments to their application or to supplement their application, except as otherwise specifically permitted in these procedures or authorized in writing by the City. During Phase 1,applicants will be notified if any of the Principals are ineligible and/or if their application is incomplete and will not move forward in the application process. However, in some cases the City may move forward in the application process to 2 other phases should it anticipate that the Live Scan will take a significant amount of time to be returned to the City. In this case Applicants wishing to move forward in the process acknowledge by signing the application that they agree to these terms and should they be disqualified as a result of a background or a Live Scan disqualification they will not be eligible for a refund of any fees collected resulting from the modification of this procedure. (7) Payment of Application Fees:The individual designated as the MMB contact on the application will be notified by e-mail as to whether the application is advancing to Phase 2 and,subsequently,to Phase 3. A payment of$701.00 will be due before Phase 2 and a payment of$1,790.00 will be due before Phase 3. As part of Phase 4 the top eligible Applicants for each category as determined by the Ordinance or by resolution will be presented to City Council and must pay a fee of$1,937.00 in order to move forward for final consideration for each permitted category. Deadlines for these payments will be included in the e-mail notification to the primary contact person. (8) Public Meeting:After Phase 3, and before Phase 4,the top thirty(30)cultivation applicants and the top three (3) applicants for all other categories excluding dispensaries must participate in a public meeting which will be held at the California City Council Chambers located at 21000 Hacienda Boulevard, California City,CA 92870. Notice of this meeting must be provided by the City to any affected business within 300 feet of the proposed location for each of the top applicants for each category in accordance with CCMC Chapter 5-6.701.The cost of providing this notification will be paid by the applicants as part of the fee in Phase 4 of the selection process. EVALUATION AND SELECTION PROCESS: The evaluation and selection process shall consist of the following four phases: ➢ Phase 1:Determination of Eligibility and Application ➢ Each Principal must undergo a criminal history check demonstrating compliance with the eligibility requirements of CCMC Chapter 5-6.906(m)for background checks. ➢ Applications must be complete to be considered. Applications will be considered complete only if they include all information required for Phases 1, 2 and 3. ➢ Proposed location of business. ➢ Execute an agreement indemnifying the City from liability. ➢ Phase 2:Initial Ranking(1,500 Points) ➢ Applications will be evaluated based on the following criteria: ■ Proposed Location of business(300 Points) ■ Business Plan (400 Points) ■ Neighborhood Compatibility Plan (400 Points) ■ Safety and Security Plan (400 Points) ➢ The top twenty five(25)applications for cultivation and the top ten(10)applications for all other categories excluding dispensaries at this time,if applicable,will move onto Phase 3. ➢ Phase 3:Second Ranking(2,500 Points) ➢ Theltop twenty five(25)applications for cultivation and the top twenty(20)applications for all other categories excluding dispensaries,if applicable,will be interviewed and evaluated by the Selection Committee based on the criteria listed below. ➢ Prior to the scheduling of the interviews in Phase 3 each of the applicants per category will be required to have their proposed site inspected by the assigned City designee if there is an existing building structure to ascertain current conditions of the facility. ➢ One Principal may be required to pass a Medical Cannabis Expertise Examination, demonstrating a working knowledge of state and local compliance standards as well as the Attorney General's Guidelines on Medicinal Cannabis. ➢ The second ranking will be scored based on the following criteria: 3 ■ Final Location (proof of ownership or a signed and notarized statement from the Property Owner) (200 Points) ■ Business Plan (300 Points) ■ Community Benefits(300 Points) ■ Enhanced Product Safety(200 Points) ■ Environmental Benefits (300 Points) ■ Labor&Employment (200 Points) ■ Local Enterprise (200 Points) ■ Neighborhood Compatibility Plan (200 Points) ■ Qualifications of Principals(300 Points) ■ Safety and Security Plan (300 Points) ➢ After all the applicants from Phase 3 scores have been tabulated they will be combined with Phase 2 to establish a new ranking of the top applicants.The top twenty(20) applicants for cultivation and the top three (3) applicants for each category,if applicable,will move onto Phase 4 of the selection process. Phase 4 Steps to be followed: 1. Public Meeting of top twenty(20) Cultivators and top three (3)applicants for all other categories excluding dispensaries. 2. Selection Committee's final review and evaluation. 3. City staff prepares and presents final report to City Council. 4. City Council makes final selection. After Phase 3,and before Phase 4,the top twenty(20)Cultivation applicants and the top three(3)applicants from all other categories shall participate in a public meeting which will be held in the California City Council Chambers on a date and time to be determined by City staff.At the Public Meeting the community will be allowed to present concerns and/or support and provide additional considerations for potential permit conditions that may be implemented by staff.The Public Meeting will not be determinative as to who gets the permit but shall inform staff of potential concerns for which a condition or conditions may be necessary to address. Furthermore,decisions, recommendations, and conditions will be based primarily on site inspection results, business feasibility, and the viability of the proposed location. After the completion of the Public Meeting and prior to the Selection Committees final recommendation to City Council,the City reserves the right to request and obtain additional information from any candidate who submitted a proposal. Upon the completion of the final review process,the Selection Committee will tabulate its final scoring of all the applicants for each category and present to the City Council final scoring of the top fifteen (15) cultivation applicants and the top two(2) applicants from all other categories excluding dispensaries for which the City Council will make the final decision on who may be awarded a permit for each of the qualified categories.The top applicants should be prepared to attend a City Council meeting in California City in case the Mayor and City Council has any additional questions before making their final decision. Notice of the public meeting must be provided pursuant to CCMC Section 5-6.701. Notice of the public meeting shall be sent to all property owners located within three hundred (300)feet of the proposed business locations of each of the top finalists in each permitted category. ➢ Following an objective ranking of the application materials, interview process,and upon the completion of the public meeting, City staff shall prepare a report bringing forward to the City Council the final ranking by the Selection Committee of the top fifteen (15) cultivation applicants and top two(2)applicants for all other categories excluding dispensaries. Please note that being awarded a MMB does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for any and all construction 4 r including electrical, plumbing,fire,planning permits or reviews,and any other permits, licenses,or reviews as may be necessary by the relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans submitted via the MMB application process meet the standards or requirements of those permitting departments.All permit awardees will still be required to complete all the permitting processes for the proposed construction or occupation of their facility. DESCRIPTION OF EVALUATION CRITERIA: ➢ Proposed Location. Your application must include the address and a detailed description of the proposed location. (Note that proof of ownership,or a notarized letter of the owner's willingness to lease will not be given any additional consideration until Phase 3). This section should also describe all sensitive uses and shall not be any closer than one thousand (1,000) feet from any parcel containing a school, college or university (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12); churches or other house of worship; a park, daycare facility serving nine or more children and is licensed by the county; a drug or alcohol rehabilitation facility providing on-site medical treatment as described in Section CCMC 9-2-2903.The MMB must be located in the appropriate zoning and meet all of the locational requirements as in described in CCMC Chapter 2 Zoning. ➢ Business Plan. With as much detail as possible,the Business Plan should describe: ➢ Description of day-to-day operations. See CCMC Section 5-6.1001. ➢ How the MMB will conform too local and state law. See CCMC Sections 5-6.101, 5-6.1101, 5-6.1401, 5-6.1402, 5-6.1403,5-6.1405, and the Attorney General's Guidelinesfor the Security and Non-Diversion of Marijuana Grown for Medical Use. ➢ Mechanisms for ensuring that the MMB will operate on a Not-for-Profit basis until the Medical Cannabis Regulation and Safety Act is fully in effect. ➢ How medical cannabis will be tracked and monitored to prevent diversion. ➢ A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. The Business Plan should include: ➢ A budget for construction,operation,maintenance,compensation of employees, equipment costs,utility costs,and other operation costs.The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs,as well as a description of the sources and uses of funds. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. ➢ A pro forma for at least three years of operation. ➢ Neighborhood Compatibility Plan. For the proposed location,your application should address how the MMB,including its exterior areas and surrounding public areas,will be managed,so as to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. Furthermore,a site plan(accurate,dimensioned and to-scale[minimum scale of 1/4"])should be included for each potential location.The scale maybe smaller if it exceeds more than a %2 acre parcel but must not be printed on no more than a 11X 17 sheet of paper. Safety and Security Plan. For each proposed location,your application should include: ➢ A detailed safety plan. This plan should describe the fire prevention,suppression, HVAC and alarm systems the facility will have in place. It should include an assessment of the facility's fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material,and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. ➢ A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security,including but not 5 limited to general security policies for the facility, employee specific policies,training, sample written policies,transactional security,visitor security,3rd party contractor security,and delivery security. In particular,applications should address ingress and egress access,perimeter security,product security(at all hours), internal security measures for access(area specific),types of security systems(alarms and cameras),and security personnel to be employed.The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. A floor plan showing existing conditions. If changes are proposed as part of the project,then a proposed floor plan should also be submitted. The floor plan(s)should be accurate,dimensioned and to-scale(minimum scale of 1/4").The scale maybe smaller if it exceeds more than a %2 acre parcel but must not be printed on no more than a 11X 17 sheet of paper. Community Benefits. The application should describe benefits that the MMB would provide to the local community,such as employment for local residents of the City,community contributions, or economic incentives to the City. ➢ Enhanced Product Safety. The application should state how the MMB will ensure enhanced consumer safety as required by State or local law. Environmental Benefits. The application should describe any proposed"green" business practices relating to energy and climate,water conservation,and materials and waste management. Labor&Employment. The application should describe to what extent the MMB will adhere to heightened pay and benefits standards and practices, including recognition of the collective bargaining rights of employees. Specific practices that are subject to consideration include the following: ➢ Providing compensation to and opportunities for continuing education and training of employees/staff(applications should provide proof of the MMB policy and regulations to employees); ➢ Providing a "living wage"to facility staff and employees. Wage scale should be provided in writing for all levels of employment at the facility. "Living Wage" shall mean 200%of the minimum wage mandated by California or Federal law,whichever is greater. ➢ Local Enterprise. The application should state the extent to which the MMB will be a locally managed enterprise whose Principals reside within California City and/or Kern County. Qualifications of Principals. The application should include information concerning any special business or professional qualifications or licenses of principals that would add to the number or quality of services that the MMB would provide,especially in areas related to medical cannabis,such as scientific or health care fields. The City's Reservation of Right's The City reserves the right to reject any and/or all proposals, with or without any cause or reason.The City may also, modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting a proposal. Late and incomplete proposals WILL BE REJECTED. Furthermore, a proposal RISKS BEING REJECTED for any of the following reasons: 1. Proposal considered not fully responsive to this request for a permit application. 2. Proposal contains excess or extraneous material not called for in the request for permit application. CONTACT: If you have any questions or would like an update on the status of your application, please contact Hazel Munoz at 760-373-7152 or by email at ccbldg-code@Califomiacfir-ca.eov 6 05/01/2017 CC Meeting Agenda Page 85 of 131 !Jit 6TY'OF • � 1 V I RNANM AGENDA REPORT To: Mayor Sylvia Ballin and Councilmembers From: Nick Kimball, Interim City Manager Date: May 1, 2017 Subject: Consideration to Approve a Professional Services Agreement to Develop and Implement a Local Cannabis Regulation and Permitting Program RECOMMENDATION: It is recommended that the City Council: a. Approve Resolution No. 7791 (Attachment "A") appropriating $60,000 in Fiscal Year 2016- 2017 for a Local Cannabis Regulation and Permitting Program; and b. Award a Professional Services Agreement (Attachment "B" — Contract No. 1854) to HdL Companies in an amount not-to-exceed $60,000 to provide professional services to develop and implement a Local Cannabis Regulation and Permitting Program; and c. Authorize the Interim City Manager to execute the agreement. BACKGROUND: 1. On December 5, 2016, the City Council discussed the potential for allowing commercial cannabis activities in the City. Based on that discussion, staff and the City Attorney's Office developed a series of two presentations to analyze possible alternatives to be considered by the City Council when evaluating whether to allow limited commercial cannabis uses in the City. 2. On January 17, 2017, the City Council received the first of two presentations on the "Regulatory Alternatives Under the Medical Cannabis Regulation and Safety Act (MCRCA) and the Adult Use of Marijuana Act (Prop 64/ AUMA)." The presentation by the City Attorney's Office focused on the following topics: a. Past legislative actions related to cannabis adopted at the state and federal levels, including discussion of MRSCA and Prop 64; b. City Council actions to date; FINANCE DEPARTMENT 117 MACNEIL STREET,SAN FERNANDO,CA 91340 (818)898-7307 WWW.SFCITY.ORG REVIEW: ® Finance Director ❑ Deputy City Manager ® City Manager 05/01/2017 CC Meeting Agenda Page 86 of 131 Consideration to Approve a Professional Services Agreement to Develop and Implement a Local Cannabis Regulation and Permitting Program Page 2 of 2 c. Seed to Sale: medical/nonmedical commercial activity; d. State Licensing Categories under MRSCA and Prop 64; e. Potential commercial and medical activities authorized under MRSCA and Prop 64; f. Case Studies; g. Potential City Code amendments and licensing; and h. Potential Sites Analysis based on 600 Ft. buffer from schools and youth institutes. 3. On February 6, 2017, the City Council received the second presentation from David McPherson from HdL Companies, which focused on the following topics: a. General understanding of the marijuana industry; b. Strategies for implementation of a cannabis program, including the regulatory framework, application process and entitlement processes; c. Taxation vs. development agreement options to generate revenue; d. Public safety considerations based on best practices in other states and municipalities; e. Feasibility of including a local hire provision in the DA and CUP application process; and f. Identify salary ranges for jobs in the cultivation, manufacturing, production, and work related to the aforementioned cannabis businesses. 4. Pursuant to direction provided after the two presentations, staff developed a Request for Qualifications and Quotations (RFQQ) to assist the City with developing a Local Cannabis Regulation and Permitting Program, including drafting relevant ordinances, developing an appropriate regulatory program, assisting with public outreach, and assisting with cost recovery and taxation policy. S. On February 16, 2017, staff posted the RFQQ on the City's website and emailed the RFQQ to four interested firms. 6. On March 16, 2017, the City received seven proposals that were submitted timely via email. 05/01/2017 CC Meeting Agenda Page 87 of 131 Consideration to Approve a Professional Services Agreement to Develop and Implement a Local Cannabis Regulation and Permitting Program Page 3 of 3 7. In March/April 2017, all proposals were reviewed by the Interim City Manager, Police Chief, and Senior Planner ("Review Committee") for an initial evaluation based on each firm's responsiveness to the RFQQ. 8. On April 19, 2017, the Review Committee interviewed the three top rated firms: HDL Companies; ICF; and Michael Baker International. ANALYSIS: As noted above, the City received seven proposals that were submitted via email prior to the prescribed deadline. The table below lists each firm, sorted by their estimated base project cost: Name of Firm Estimated Base Project Cost Law Offices of Julia Sylva* $ 45,500 HdL Companies $ 56,250 ICF $ 60,445 Best Best & Krieger, LLP (w/ Professional Organic Solutions) $ 85,000 Macias Gini & O'Connell LLP $ 90,750 Botec Analysis $ 94,000 Michael Baker International (w/ Meyers Nave Legal Services) $ 112,780 * Response does not include public outreach services. As part of the RFQQ review process, the Review Committee placed heavy emphasis on direct experience working with local municipalities on marijuana management programs, including, but not limited to, understanding of the regulatory framework in California as demonstrated by hands-on experience working with municipalities to draft and implement regulations, experience developing and implementing a merit-based application process for prospective cannabis operators, and understanding of Proposition 218 and direct experience working with municipalities to develop and implement cost recovery procedures and ongoing tax policy. Subsequent to reviewing all proposals, the Review Committee conducted telephonic interviews with the top three firms (listed in alphabetical order): 1) HdL Companies, 2) ICF, and 3) Michael Baker International. Based on review of the proposals and subsequent interviews, staff recommends entering into a professional services agreement with HdL Companies (HdL) to assist the City with developing a Local Cannabis Regulation and Permitting Program. HdL was ranked highest by the Review Committee and demonstrated a high level of experience working with California municipalities to draft cannabis ordinances, developing an 05/01/2017 CC Meeting Agenda Page 88 of 131 Consideration to Approve a Professional Services Agreement to Develop and Implement a Local Cannabis Regulation and Permitting Program Page 4 of 4 appropriately scaled regulatory framework and developing and implementing a merit-based application process for permitting cannabis operations while providing a cost effective proposal (Exhibit "A" of Attachment "B"). BUDGET IMPACT: The City will have to make the initial investment and bear the cost of developing ordinances, regulations, permitting process, and related public outreach. Consequently, a budget amendment is required to appropriate the funds in Fiscal Year 2016-2017. However, activities related to the development of a Local Cannabis Regulation and Permitting Program are eligible to be recovered through user fees. Staff will work with the selected consultant to ensure that the City recovers costs to the full extent allowed by Proposition 218. Revenues are expected to be recovered in Fiscal Year 2017-2018 and subsequent fiscal years. CONCLUSION: The City's Review Committee has analyzed all proposals submitted and conducted phone interviews with the top three firms. After careful consideration, staff is recommending that a Professional Services Agreement be awarded to HdL Companies to develop and implement a Local Cannabis Regulation and Permitting Program. ATTACHMENTS: A. Resolution No. 7791 B. Contract No. 1854 05/01/2017 CC Meeting Agenda Page 89 of 131 ATTACHMENT "A" RESOLUTION NO. 7791 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO, CALIFORNIA, AMENDING THE ADOPTED BUDGET FOR FISCAL YEAR 2016-2017 WHEREAS, the City Council has received and considered the proposed adjustment to the budget for Fiscal Year 2017, commencing July 1,2016, and ending June 30, 2017; and WHEREAS, the City Council has determined that it is necessary to adjust the expenditures and revenues of the current City budget; and WHEREAS, an annual budget for the City of San Fernando for the Fiscal Year beginning July 1, 2016 and ending June 30, 2017, a copy of which is on file in the City Clerk's Office, and has been adopted on June 29,2016. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN FERNANDO DOES HEREBY RESOLVE, FIND, DETERMINE AND ORDER AS FOLLOWS: Section 1. The following adjustments are made to the Fiscal Year 2016-2017 City Budget: Expenditures: Non-Departmental 00 1-190-0000-4270—Increase Professional Services $60,000 (Local Cannabis Regulation and Permitting Program) PASSED,APPROVED,AND ADOPTED this 0 day of May 2017. Sylvia Ballin, Mayor AT EST: Elena G. Chdvez, City Clerk 05/01/2017 CC Meeting Agenda Page 90 of 131 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF SAN FERNANDO ) I HEREBY CERTIFY that the foregoing Resolution was approved and adopted at a regular meeting of the City Council held on the 1" day of May, 2017, by the following vote to wit: AYES: NOES: ABSENT: Elena G. Chavez, City Clerk 2 05/01/2017 CC Meeting Agenda Page 91 of 131 ` �,aK Ff� :'C fTY'OF ATTACHMENT `B" TANDD CONTRACT NO. 1854 M fE PROFESSIONAL SERVICES AGREEMENT Hinderliter, de Llamas and Associates Local Cannabis Regulation and Permitting Program Services THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this day of May 2017 (hereinafter, the "Effective Date"), by and between the CITY OF SAN FERNANDO, a municipal corporation ("CITY") and Hinderliter, de Llamas and Associates, a California Corporation (hereinafter, "CONSULTANT"). For the purposes of this Agreement CITY and CONSULTANT may be referred to collectively by the capitalized term "Parties." The capitalized term "Party" may refer to CITY or CONSULTANT interchangeably. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULTANT agree as follows: I. ENGAGEMENT TERMS 1.1 SCOPE OF SERVICES: Subject to the terms and conditions set forth in this Agreement and all exhibits attached and incorporated hereto, CONSULTANT agrees to perform the services and tasks set forth in Exhibit "A" (hereinafter referred to as the "Scope of Services"). CONSULTANT further agrees to furnish to CITY all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the services and tasks set forth in the Scope of Services. For the purposes of this Agreement the aforementioned services and tasks set forth in the Scope of Services shall hereinafter be referred to generally by the capitalized term "Work." 1.2 TERM: This Agreement shall have a term of two (2) years commencing from the EFFECTIVE DATE, unless CITY issues written notice of its intent not to authorize an additional extension term(s). Nothing in this Section shall operate to prohibit or otherwise restrict the CITY's ability to terminate this Agreement at any time for convenience or for cause 1.3 COMPENSATION: A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Services in accordance with the compensation schedule, which is included in Section IV— Fees of Exhibit "A" (hereinafter, the "Approved Rate Schedule"). B. Section 1.3(A) notwithstanding, CONSULTANT's total compensation during the Term of this Agreement or any extension term shall not exceed the budgeted aggregate sum of sixty thousand ($60,000) dollars (hereinafter, the "Not-to- 05/01/2017 CC Meeting Agenda Page 92 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 2 of 2 Exceed Sum"), unless such added expenditure is first approved by the CITY acting in consultation with the City Manager and the Finance Director. In the event CONSULTANT's charges are projected to exceed the Not-to-Exceed Sum prior to the expiration of the Term or any single extension term, CITY may suspend CONSULTANT's performance pending CITY approval of any anticipated expenditures in excess of the Not-to-Exceed Sum or any other CITY-approved amendment to the compensation terms of this Agreement. 1.4 PAYMENT OF COMPENSATION: Following the conclusion of each calendar month, CONSULTANT shall submit to CITY an itemized invoice indicating the services and tasks performed during the recently concluded calendar month, including services and tasks performed and the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT's monthly compensation is a function of hours worked by CONSULTANT's personnel, the invoice shall indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar day of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT. 1.5 ACCOUNTING RECORDS: CONSULTANT shall maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities. 1.6 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Services, CONSULTANT shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT shall only be compensated for the reasonable value of the services, tasks and other work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONSULTANT's cessation or abandonment. 05/01/2017 CC Meeting Agenda Page 93 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 3 of 3 II. PERFORMANCE OF AGREEMENT 2.1 CITY'S REPRESENTATIVES: The CITY hereby designates the City Manager, his/her designee, and Community Development Director (hereinafter, the "CITY Representatives") to act as its representatives for the performance of this Agreement. The City Manager shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement. CONSULTANT shall not accept directions or orders from any person other than the CITY Representatives or their designee. 2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Andrew Nickerson, President to act as its representative for the performance of this Agreement (hereinafter, "CONSULTANT Representative"). CONSULTANT Representative shall have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. CONSULTANT Representative or his designee shall supervise and direct the performance of the Work, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement. Notice to the CONSULTANT Representative shall constitute notice to CONSULTANT. 2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS: CONSULTANT agrees to work closely with CITY staff in the performance of the Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULTANT shall be subject to inspection and approval by CITY Representatives or their designees. 2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following: A. CONSULTANT shall perform all Work skillfully, competently and to the highest standards of CONSULTANT's profession; B. CONSULTANT shall perform all Work in a manner reasonably satisfactory to the CITY; C. CONSULTANT shall comply with all applicable federal, stale and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.); D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance; 05/01/2017 CC Meeting Agenda Page 94 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 4 of 4 E. All of CONSULTANT's employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them by CONSULTANT; and F. All of CONSULTANT's employees and agents (including but not limited subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection. The Parties acknowledge and agree that CONSULTANT shall perform, at CONSULTANT's own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT's failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT's employees, agents, contractors, subcontractors and subconsultants. Such effort by CONSULTANT to correct any errors or omissions shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY's acceptance of any work performed by CONSULTANT or on CONSULTANT's behalf shall not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of CONSULTANT's profession. 2.5 ASSIGNMENT: The skills, training, knowledge and experience of CONSULTANT are material to CITY's willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it shall not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSULTANT's duties or obligations under this Agreement without the prior written consent of the CITY. In the absence of CITY's prior written consent, any attempted assignment or transfer shall be ineffective, null and void and shall constitute a material breach of this Agreement. 2.6 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR: The Work shall be performed by CONSULTANT or under CONSULTANT's strict supervision. 05/01/2017 CC Meeting Agenda Page 95 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 5 of 5 CONSULTANT will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT's competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY's confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULTANT are not employees of CITY and shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers' compensation insurance and the like. 2.7 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants is determined by the CITY Representatives to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work. 2.8 NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition. 2.10. INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULTANT shall be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. CONSULTANT and all persons retained or employed by CONSULTANT shall have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly 05/01/2017 CC Meeting Agenda Page 96 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 6 of 6 conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing. III. INSURANCE 3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT shall procure and maintain the following insurance coverage, at its own expense: A. Commercial General Liability Insurance: CONSULTANT shall procure and maintain Commercial General Liability Insurance ("CGL Coverage") as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability. B. Automobile Liability Insurance: CONSULTANT shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage. C. Workers' Compensation Insurance/ Employer's Liability Insurance: A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Wor contemplated in this Agreement. i D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT's profession. Such coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and shall be endorsed to include contractual liability. 05/01/2017 CC Meeting Agenda Page 97 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 7 of 7 3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall contain an endorsement naming the CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers as additional insureds. 3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement shall be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance shall be procured from insurers who, according to the latest edition of the Best's Insurance Guide, have an A.M. Best's rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor's rating of no less than BBB according to the latest published edition the Standard & Poor's rating guide. As to Workers' Compensation Insurance/ Employer's Liability Insurance, the CITY Representatives are authorized to authorize lower ratings than those set forth in this Section. 3.4 PRIMACY OF CONSULTANT'S INSURANCE: All policies of insurance provided by CONSULTANT shall be primary to any coverage available to CITY or CITY's elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self- insurance maintained by CITY or CITY's elected or appointed officials, officers, employees, agents or volunteers shall be in excess of CONSULTANT's insurance and shall not contribute with it. 3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall not prohibit CONSULTANT or CONSULTANT's officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULTANT hereby waives all rights of subrogation against CITY. 3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands and agrees, that CITY's ability to verify the procurement and maintenance of the insurance required under this Article is critical to safeguarding CITY's financial well-being and, indirectly, the collective well-being of the residents of the CITY. Accordingly, CONSULTANT warrants, represents and agrees that its shall furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall be received and approved by CITY as a condition precedent to CONSULTANT's commencement of any work or any of the Work. Upon CITY's written request, CONSULTANT shall also provide CITY with certified copies of all required insurance policies and endorsements. 05/01/2017 CC Meeting Agenda Page 98 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 8 of 8 IV. INDEMNIFICATION 4.1 CONSULTANT agrees to the following: A. Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its Officers, volunteers, employees and representatives from and against any and all suites, actions, or claims, or any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement, except for such loss or damage arising from CITY's sole negligence or willful misconduct. B. Indemnification for other Damages. CONSULTANT indemnifies and hold CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgement rendered against it or any sums paid out in settlement or otherwise. Both parties understand and agree that nothing in this agreement constitutes advice by CONSULTANT to CITY to violate any existing law and, accordingly, this section does not obligate CONSULTANT to the extent that federal or state law may now, or subsequently, prohibit the actions recommended by CONSULTANT pursuant to this Agreement. V. TERMINATION 5.1 TERMINATION WITHOUT CAUSE: CITY may terminate this Agreement at any time for convenience and without cause by giving CONSULTANT a minimum of five (5) calendar days prior written notice of CITY's intent to terminate this Agreement. Upon such termination for convenience, CONSULTANT shall be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination. CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in Section 6.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work. CONSULTANT shall 05/01/2017 CC Meeting Agenda Page 99 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 9 of 9 be required to provide such Documents and Data within fifteen (15) calendar days of CITY's written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, shall operate to prohibit or otherwise restrict CITY's ability to terminate this Agreement for convenience as provided under this Section. 5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT: A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, "Event of Default") shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.13 and 5.2C below or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default shall constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement. B. CONSULTANT shall cure the following Events of Defaults within the following time periods: i. Within three (3) business days of CITY's issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY's employees or agents with any information and/or written reports, documentation or work product which CONSULTANT is obligated to provide to CITY or CITY's employees or agents under this Agreement. Prior to the expiration of the 3- day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days from the end of the initial 3-day cure period; or ii. Within fourteen (14) calendar days of CITY's issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that 05/01/2017 CC Meeting Agenda Page 100 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 10 of 10 the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days from the end of the initial 14- day cure period. In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULTANT shall include, but shall not be limited to the following: (i) CONSULTANT's refusal or failure to perform any of the services or tasks called for under the Scope of Services; (ii) CONSULTANT's failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT's and/or its employees' disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY's discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, misleading or erroneous in any material respect. C. CITY shall cure any Event of Default asserted by CONSULTANT within forty-five (45) calendar days of CONSULTANT's issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY's failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.4, above, shall be cured by CITY within five (5) calendar days from the date of CONSULTANT's Default Notice to CITY. D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT's performance under this Agreement pending CONSULTANT's cure of any Event of Default by giving CONSULTANT written notice of CITY's intent to suspend CONSULTANT's performance (hereinafter, a "Suspension Notice"). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULTANT shall be compensated only for those services and tasks which have been rendered by CONSULTANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No 05/01/2017 CC Meeting Agenda Page 101 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 11 of 11 actual or asserted breach of this Agreement on the part of CITY shall operate to prohibit or otherwise restrict CITY's ability to suspend this Agreement as provided herein. E. No waiver of any Event of Default or breach under this Agreement shall constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies: i. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part; ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance; iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULTANT's breach of the Agreement or to terminate the Agreement; or iv. The CITY may exercise any other available and lawful right or remedy. CONSULTANT shall be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY's exercise of its remedies under this Agreement. G. In the event CITY is in breach of this Agreement, CONSULTANT's sole remedy shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULTANT under this Agreement for completed services and tasks. 5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 05/01/2017 CC Meeting Agenda Page 102 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 12 of 12 5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement. VI. MISCELLANEOUS PROVISIONS 6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term "Documents and Data" means and includes all reports, analyses, correspondence, plans, drawings, designs, renderings, specifications, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data. CONSULTANT shall require all subcontractors and subconsultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY shall be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement. 6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by CONSULTANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT shall not use CITY's name or insignia, photographs, or any publicity pertaining to the Work in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY. 6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULTANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq. 05/01/2017 CC Meeting Agenda Page 103 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 13 of 13 6.4 NOTICES: All notices permitted or required under this Agreement shall be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose: CONSULTANT: CITY: Hinderliter, de Llamas &Associates City of San Fernando 1340 Valley Vista Drive, Suite 200 117 Macneil Street Diamond Bar, CA 91765 San Fernando, CA 91344 Attn: Andrew Nickerson, President] Attn: City Manager Phone: (909) 861-4335 Phone: (818) 898-1203 Fax: (909) 861-7726 Fax: (818) 365-8090 Email: anickerson@hdlcompanies.com Email: nkimball@sfcity.org Such notices shall be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address. 6.5 COOPERATION; FURTHER ACTS: The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as is reasonably necessary, appropriate or convenient to achieve the purposes of this Agreement. 6.6 SUBCONTRACTING: CONSULTANT shall not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification. 6.7 CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT. 6.8 PROHIBITED INTERESTS: CONSULTANT warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of CITY, during the 05/01/2017 CC Meeting Agenda Page 104 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 14 of 14 term of his or her service with CITY, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement. 6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California. 6.11 ATTORNEYS' FEES: If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorneys' fees and all other costs of such action. 6.12 SUCCESSORS AND ASSIGNS: This Agreement shall be binding on the successors and assigns of the Parties. 6.13 NO THIRD PARTY BENEFIT: There are no intended third party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties. 6.14 CONSTRUCTION OF AGREEMENT: This Agreement shall not be construed in favor of, or against, either Party but shall be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys. 6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement shall be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver shall be void and invalid. 6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limits, augment, or describe the scope, content, or intent of this Agreement. 05/01/2017 CC Meeting Agenda Page 105 of 131 PROFESSIONAL SERVICES AGREEMENT Development of a Local Cannabis Regulation and Permitting Program Page 15 of 15 6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement shall control. 6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, or entered into between CITY and CONSULTANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.15, above. 6.20 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with Section 6.16, above. One fully executed original counterpart shall be delivered to CONSULTANT and the remaining two original counterparts shall be retained by CITY. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above. CITY OF SAN FERNANDO Hinderliter, de Llamas and Associates By: By: Nick Kimball, Interim City Manager Andrew Nickerson, President APPROVED AS TO FORM By: Rick R. Olivarez, City Attorney city of San Fernando Development of a Local Marijuana Management Program HdL Companies 1340 Valley Vista Dr., Suite 200 Diamond Bar, CA 91765 www.hdicompanies.com Contact: Andy Nickerson 909.861.4335 05/01/2017 CC Meeting Agenda Page 107 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 TABLE OF CONTENTS I. LETTER OF TRANSMITTAL .............................................................................2 II. SCOPE OF WORK...... .....................................................................................3 III. QUALIFICATIONS.................................................................................10 V. FEES ................................................................................................................17 HdLy� 1 COMPANIES 05/01/2017 CC Meeting Agenda Page 108 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 I. LETTER OF TRANSMITTAL March 16, 2017 Mr. Federico Ramirez, Community Development Director City of San Fernando San Fernando Community Development Department 117 Macneil Street San Fernando, CA 91340 Re: Request for Qualifications and Quotations: Development of a Local Marijuana Management Program Thank you for the opportunity to present this proposal to prepare City Ordinance(s), an application and review process, cost-recovery policy and recommendations to develop an ongoing taxation and regulatory compliance program related to marijuana-business activities. HdL meets all the qualifications set forth in the Request for Qualifications and Proposals. HdL was founded in 1983 and has over 30 years of experience providing professional consulting services to local governments throughout California. HdL was established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and marijuana regulation and taxation. The firm also provides a variety of enterprise software products for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms. HdL's systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 400 agencies in six states. The firm currently serves 47 counties, 299 cities and 99 transactions tax districts in California. Of interest to you and your City is our knowledgeable team of professionals who have direct experience with establishing and implementing Marijuana Management Programs for both medical and adult recreational use marijuana; including establishing land-use regulations, cost recovery plans, applications processes, implementation of State and local regulations, and financial/regulatory compliance for marijuana-related businesses. We look forward to the opportunity to partner with the City of San Fernando to develop a strategy which meets your program needs. If you have any questions or require additional information, please feel free to contact me at 909.861.4335 ext. 333 or anickerson(a-)-hdlcompanies.com or David McPherson at 909.861.4335 ext. 348 or dmcpherson(aDhdlcompanies.com. Sincerely, Andy Nickerson President, HdL Companies Hdt,:4%-" 2 COMPANIES 05/01/2017 CC Meeting Agenda Page 109 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 II. SCOPE OF WORK The regulation and taxation of marijuana-related businesses is complex and filled with challenging issues. Developing comprehensive and equitable taxation and regulatory compliance programs for the Medical Cannabis Regulation and Safety Act (MCRSA) and Proposition 64 Adult Use Marijuana Act (AUMA) are some of the biggest challenges facing local governments throughout California. HdL's staff has over 7 years of experience developing, designing, reviewing and creating regulatory programs for state, county and local agencies. The Scope of Work to be provided by HdL shall include: Kick off meeting(s) with City Staff, City Sub Committees and Community Stakeholders; Represent City Administration as requested for meetings with City staff, cannabis permittees, and State Agencies as requested; Review and analyze city ordinance(s) and provide recommendations to ensure compliance with all state and local laws and conforms to the best practices for regulating cannabis businesses in the City; Monitor MCRSA and AUMA policy development and provide feedback to City staff to ensure the City is in compliance with any changes which may impact the development of the City's strategy to regulate and tax marijuana-related businesses which will be permitted in the City; Participate in staff meetings, conference calls, and respond to staff inquires via phone and email, review staff reports to city council and assist with responses to inquiries from the public; Conduct a Community Outreach program including meetings with internal and external stakeholders, City Council, industry representatives and the public; Develop a fit gap analysis and create a cost recovery plan for costs associated with the City's Marijuana Management program; Design, create and implement a merit-based application process which takes into consideration all the key elements of a successful process, and Establish a compliance program to ensure internal controls and accountability with permittees. Obiective 1: Coordination with City Staff and City Attorney HdL staff will participate in a project kick-off meeting with City Staff and the City Attorney to review and understand the City's current marijuana ordinance, needs for additional regulations/programs, communication protocols and review of applicable planning documents. HdL will also provide ongoing coordination with community groups, City Council and the public to offer guidance on the regulation of marijuana-related business activities when requested by City administration. H d E 3 C O M P A N I E S 05/01/2017 CC Meeting Agenda Page 110 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 HdL will provide subject matter expertise and technical support, including working with City staff on all issues related to marijuana tax policies, land use issues, energy and water requirements, CEQA, regulatory ordinances, fiscal analysis for cost recovery and taxation strategies, compliance reviews, merit-based application process and industry business practices to ensure a comprehensive engagement on these issues is accomplished. Objective 2: Review Existing Ordinances for Medical and Non-Medical Marijuana HdL has established a specialized cannabis services division with expert staff that have been working closely with the Department of Consumer Affairs, Department of Food and Agriculture, Department of Public Health and the State Board of Equalization in the implementation of the Medical Cannabis Regulatory and Safety Act(MCRSA) and Proposition 64 Adult Use Marijuana Act (AUMA). In addition, our staff has partnered with the League of California Cities, CSAC, and the Police Chiefs Association to develop policy and regulatory strategies to manage the Cannabis Industry in California. We have the resources and expertise to assist cities and counties with the design and implementation of all aspects of their regulatory and taxation policies and programs. The firm will review the existing city ordinance(s) and provide recommendations to ensure compliance with all state and local laws to confirm the ordinance(s) conform to best practices for regulating cannabis businesses in the City. HdL will provide recommendations and changes to city ordinance(s), policy and procedures. HdL has the experience to assist the City with drafting amendments into regulatory ordinances. In the past year, the firm has developed or reviewed over 35 ordinances for its clients. In addition, HdL has assisted 12 cities with marijuana-related regulation and taxation ordinances that were placed before voters on the November 2016 ballot which all successfully passed. Objective 3: Community Outreach HdL is recognized throughout the state as the leader in providing public outreach, study sessions and stakeholder meetings for policy makers as well as internal and external stakeholders related to marijuana policy and regulatory issues. Our staff understands the importance of community outreach to ensure a successful Marijuana Management Program is implemented in the City. HdL's Cannabis Policy Advisor has over 16 years of experience in publiq policy, community engagement and advocacy from both the public and private sector. 0 r Cannabis Compliance Director has 7 years of experience developing one of the first cannabis regulatory programs in the country for a local municipality. Our Cannabis Compliance Manager has over 5 years of experience developing state regulatory programs and was one of the original regulators to develop marijuana policies for the state of Colorado. HdL also employs a Cannabis Outreach Coordinator who has training and expertise in developing community-based outreach programs. HdIf"S" 4 COMPANIES 05/01/2017 CC Meeting Agenda Page 111 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 In the last 2 years, HdL has conducted over 75 workshops for professional organizations and local governments. Our public involvement process brings together all segments and geographies of the community including: elected officials, public agency staff, law enforcement, industry stakeholders, community groups and marijuana users. Our team will conduct the necessary outreach programs specific to the City of San Fernando including public outreach, study sessions with decision makers, stakeholder meetings and public hearings and provide expertise on city code amendments, a merit-based application process, cost recovery fees, and tax policy in compliance with Proposition 218. Objective 4: Preparation of Medical and Non-Medical Marijuana Program 1. Draft City Code Amendments HdL will review, analyze and provide recommendations to the City to develop regulations which comply with MCRSA, AUMA and local laws. The recommendations will evaluate best practices related to time, place and manner issues to develop and maintain an robust and enforceable regulatory structure that meets community goals and ensures public safety. These include but are not limited to business location, hours of operation, signage, advertisements, physical security, smell, site, reporting requirements and employee badge requirements. 2. Discretionary Review and Entitlement Process HdL has worked with numerous clients in developing discretionary review and entitlement processes which are best suited for each community such as Conditional Use Permits, Development Agreements and Special Regulatory Permits. The firm will work with City administration and policy makers to determine the best entitlement strategy to ensure land use, public safety and welfare concerns of the public agency. 3. Licensing and Zoning Districts HdL will utilize its cannabis experience, proprietary software and database to evaluate regional cannabis-industry trends, demographics and geographical location of the City to determine the appropriate number of licenses and zoning districts that would be allowed for medical and non-medical cultivation, manufacturing, extraction, packing, labeling and testing of commercial sales. 4. Cost Recovery Fees To develop a cost recovery fee, HdL will analyze the costs of staff time, overhead, fringe benefits, consultants and other services associated with the regulatory process. HdL staff has experience developing medical and non-medical marijuana regulatory fees and doing a "fit gap" analysis of staff responsibilities and time allotted to this program to establish appropriate fees for the City's level of oversight and enforcement of the regulatory process. H d I 5rV1 5 COMPANIES 05/01/2017 CC Meeting Agenda Page 112 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 5. Tax Policy in Compliance with Proposition 218 HdL's staff has extensive experience developing tax policies that comply with Proposition 218. In the past year, HdL developed 12 marijuana-related tax measures which successfully passed in the November 2016 election. The firm is currently in the process of working with several other agencies to develop tax policies and ballot measures. Each of these is designed to provide the greatest flexibility in economic benefits to the City and strategically designed to address changes to the economy. These tax strategies also also created to comply with MCRSA, AUMA and Proposition 218 to ensure smooth implementation for local agencies. 6. Merit-Based, Multi-Phase Application and Permitting Process HdL staff will work collaboratively with City staff in developing the Marijuana business application and recommend fees for each phase of the process to ensure cost recovery of staff resources. HdL will screen and review applications for each permit category and make recommendations to the City on which applicants should be approved for each phase of the application process. Application Development and Submittal Requirements Phase I will require each member of the applicant's team to complete the application materials, which will include a Live Scan form or alternative background requirements, Release and Authorization form and Disclosure and Acknowledgement form. Prior to Phase 11, HdL staff experienced with developing "best practice" for Marijuana facility applications will collaborate with City staff to certify all information desired by the City is incorporated in the Marijuana business application. HdL will review the City's ordinance requirements, the California Attorney General's Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use (2008), and new regulatory requirements established by MCRSA and AUMA. Furthermore, HdL will develop evaluation criteria to be used for the review process in accordance with the City of San Fernando's proposed regulatory ordinance. In addition to the documents and minimum standard requirements for the filing of the application, the Request for Permit Application (RFPA) will consider these seven (7) key components of the application. The criteria to be used in the decision process will include the following but not be limited to these categories: ➢ Location of the proposed facility ➢ Articles of incorporation ➢ Live scan submissions ➢ Proof of capitalization HdL14:` 6 COMPANIES 05/01/2017 CC Meeting Agenda Page 113 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 ➢ Proof of insurance ➢ Business plan (includes building & construction, security plan and fire plan) ➢ Industry experience Application Review and Initial Ranking HdL will review all applications to identify incomplete submissions for immediate disqualification, omissions of live scan submissions or other background requirements of all business partners, and applications which do not conform to zoning requirements for their perspective permit specifically authorized by the RFPA. The best submissions will be forward thinking and deploy solutions that identify "green" practices, while employing "sustainable" energy and waste solutions, and implement the "best practices" available in the cannabis industry. Consideration will be given to applications designed to reduce and address concerns the City may have regarding nuisance behavior, environmental issues, or product safety. The specific criteria which will be used in evaluating and rating the applications shall include the following: ➢ Overall quality of the proposal including responsiveness and conformance to RFPA requirements for content and format; ➢ Quality and appropriateness of proposed applicant team, professional experience and background of primary applicants and key sub lessees; ➢ Key personnel, project location, and other management staff with required experience and skills relevant to this project; ➢ Primary applicants experience and ability to manage operations of proposed facility, scheduling of work, cost estimating and budget management; ➢ Primary makeup of applicant's corporate board, and prior experience working with local government agencies; ➢ Patient tracking, product inventory management and recordkeeping; ➢ Quality and appropriateness of proposed site, business model, organization, and knowledge,)and experience working with specific legal codes and regulations; ➢ Transportation plan describing the procedures for safely and securely transporting cannabis products and currency; ➢ Applicants use and implementation of solutions designed to reduce and address any actual or potential concerns of the City and its residents, and ➢ Any other additional information which the City would like to incorporate into the selection process which they deemed necessary. HdE`JV1 7 COMPANIES 05/01/2017 CC Meeting Agenda Page 114 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 Preliminary Results and Recommendations: All applications will be individually scored by HdL staff and consolidated into a single results spreadsheet to allow for easy evaluation of results. The scoring spreadsheet will be provided to the City, along with HdL's recommendations. The top ten (10) applicant's submissions from Phase II, in each permitted category, will move on to Phase III. Each of the ten (10) finalists, if applicable, from each category will be reviewed and rated based on ten (10) point categories. An applicant's score for points will be based on their ability to meet or exceed minimum requirements in the ten (10)categories. Applicants must provide information on how they plan to meet these point categories. Such action will become a mandatory condition of their permit. Failure to meet or comply with this requirement will subject applicants to penalties and/or revocation proceedings. These categories include the following: 1. Final Proposed Location 6. Labor and Employment Practices 2. Business Plan 7. Local Enterprise 3. Community Benefits 8. Neighborhood Compatibility Plan 4. Enhanced Product Safety 9. Qualifications of Principals 5. Environmental Benefits 10. Safety and Security Plan Optional Phase: Expertise Examination The City may at its discretion develop more stringent requirements to identify the most qualified applicants from this phase of the process by requiring an examination from a designated managing member of the applicant's collective. The City may award up to twenty-five (25) additional points for the examination responses. The exam will test the applicant's familiarity with the City of San Fernando Ordinance, MCRSA and AUMA, California law, as well as the Attorney General's guidelines on Medicinal Cannabis. Examination scores will be added to the original score total. After all applicants have been allocated their points and exam scores, the appropriate number of applicants as determined by the City in the selected categories will then move to Phase IV. Facility Inspection and Interview Panel Support HdL will assist City staff with conducting site verification prior to Phase III. In addition, HdL staff will prepare panel interview questions to be used by City staff for the final ranking of candidates. The top ten (10) Applicants will advance to a panel interview by the Selection Committee. Prior to scheduling the panel interviews all proposed site locations will be inspected to determine if applicants have been operating prior to being issued a permit. Any applicants identified as having been in operation without a permit will be disqualified. If it is determined HdE4` 8 COMPANIES 05/01/2017 CC Meeting Agenda Page 115 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 that an operation was pre-existing but failed to pay past taxes, such non-disclosure of this information will cause the application to be disqualified from consideration. In addition, any misrepresentation, failure to disclose, or withholding of information pertinent to this application process including but not limited to prior operations, board and management composition, pre-constructed sites, gross receipts, length of time operating, etc. may result in immediate disqualification. Once the site inspection has been completed the applicants will be scheduled for a panel interview. The interview panel will consist of subject matter experts from the following areas: Economic Development, Community Development, Finance, Fire and Police. Please note it is HdL's recommendation that the City Attorney's Office not participate on this panel to remain neutral in case of an appeal or potential litigation which they must defend. However, it will be the City's sole discretion on how to address this issue. Final Selection and Presentation to Council ➢ Following the objective ranking of the application materials and the interview panels scoring, HdL will assist staff in bringing forward for the City Council's consideration recommendations for issuing permits for the appropriate number of applicants for each permit type authorized. ➢ HdL will be available to assist City staff with responses to questions or to provide other assistance at City Council meetings. HdI151irk, 9 COMPANIES 05/01/2017 CC Meeting Agenda Page 116 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 Ill. QUALIFICATIONS 1. Key Personnel Our team of professionals has over 20 years of direct experience establishing and implementing medical and retail cannabis regulatory and taxation programs which include establishing land-use regulations, permit processes, staffing plans, cost recovery fees, structuring cannabis business tax fees, regulatory compliance, financial audits and law enforcement training. Our team has conducted over 10,000 cannabis compliance inspections and investigations in Colorado and California. David McPherson, Cannabis Compliance Director David McPherson works with local agencies to prepare them to mitigate regulatory issues surrounding Proposition 64. Prior to joining the firm, David served 28 years in local government for the County of Orange and the cities of Newport Beach, San Jose and Oakland. David's experience as a law enforcement officer, compliance auditor, and tax administrator has provided him a wealth of experience that makes him uniquely qualified to manage HdL's Cannabis Services Program. While working for the City of Oakland, he became the first Tax Administrator in the Country to successfully tax, regulate and audit medical marijuana businesses. David has over 7 years of experience working with Marijuana regulatory programs. David is one of the state's most recognized experts in cannabis horticulture, processing and dispensary operations. He uses his experience to assist local and state agencies in developing marijuana policies for regulation, compliance, auditing and economic development. He worked closely with the League of Cities and lobbyists on the development of AB 243, SB 243 and AB 266 which established the Medical Cannabis Regulation and Safety Act (MCRSA). David provides technical support on cannabis-related matters to the League of Cities, the Police Chiefs Association, Rural County Representatives of California, and the California State Association of Counties. In addition, David is working collaboratively with the Department of Consumers Affairs, Department of Food &Agriculture, Department of Health Services and the State Board of Equalization on the implementation of best practices for regulating the Cannabis Industry for local agencies. David received his Bachelor's Degree in History from California State University, Fullerton and his Master's Degree in Public Administration from California State University, Long Beach. While at Long Beach, he was named "Future Urban Administrator of the Year". H d Ly" 10 COMPANIES 05/01/2017 CC Meeting Agenda Page 117 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 Mark Lovelace, Cannabis Policy Advisor Mark Lovelace has 16 years of broad experience in public policy, community engagement and advocacy from both inside and outside of government. He is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a policy issue in California. Mark served on the Humboldt County Board of Supervisors from 2009 through 2016, where he was instrumental in developing a comprehensive approach to regulating cannabis, including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Medical Marijuana Working Group for the California State Association of Counties (CSAC) and helped draft CSAC's legislative platform for cannabis issues. Mark pioneered the first-ever six-county regional summit on cannabis issues in 2015, which resulted in the North Coast Counties Marijuana Policy Statement. His work and input were pivotal in guiding the development of SB 643 and AB 243, two components of the Medical Cannabis Regulation and Safety Act (MCRSA). Mark has worked extensively with public agencies and statewide associations on cannabis issues, including CSAC, Rural County Representatives of California (RCRC), the Association of California Water Agencies, the North Coast Resource Partnership, California Department of Fish and Wildlife, the State Water Board, the North Coast Regional Water Board, the Bureau of Medical Cannabis Regulation, State legislators, the Department of Justice, Members of Congress and others. He has organized and led numerous presentations, workshops and panel discussions on cannabis issues and has been a sought-after speaker on the topic for government agencies, community organizations and cannabis industry groups. Mark received his Bachelor of Science Degree in Industrial and Product Design from California State University, San Jose. Prior to his time on the Board, he worked for many years as a respected advocate on land use, planning, development and environmental issues. Matt Eaton, Cannabis Compliance Manager Matt Eaton is the Cannabis Compliance Manager at HdL and plays a critical role in implementing the Marijuana Management Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 29 years' experience conducting criminal/regulatory investigations, and corporate/individual background investigations. While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED) Matt managed Criminal Investigators and civilian staff in the Denver Metro and Longmont Field Offices. During his 6 year tenure at the IVIED, he conducted approximately 10,000 criminal investigations and compliance reviews which included regulatory and financial investigations. In addition, he is a subject matter expert on track and trace systems. He understands the complexity of reviewing Hdt':"V'l C O M P A N I E S 05/01/2017 CC Meeting Agenda Page 118 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 data to ensure businesses are in compliance with state and local regulations. Matt was also responsible for planning, developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommending changes to current regulations and identifying essential language for new legislation in the State of Colorado. Matt is well known for his ability to maintain working relationships with Cannabis Industry leaders and external stakeholders in resolving issues. Matt received his Bachelors of Science Degree from Biola University and currently maintains a Colorado Post Certificate. He has also served as an Adjunct Instructor teaching law enforcement principles related to criminology, correctional processes, procedural law, interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado. Matt Hinderliter, Director Audit Services During his 25-year tenure with HdL, Matt Hinderliter has directly participated in thousands of taxpayer audits. He is the author of an extensive audit training manual including information regarding complex point of sale issues and proposed changes in legislation and regulations. He created the state's first multi-dimensional audit process, which includes extensive data mining and web-based analysis combined with field investigations. He is responsible for quality control, and for ensuring HdL's audit techniques and programs remain at the industry's leading edge through continuous innovation and improvement. Mr. Hinderliter earned his Bachelor of Arts degree in Business Administration from California State University, Fullerton. Stephanie Martin, Cannabis Outreach Coordinator With over 28 years of diversified law enforcement experience, Stephanie has used her training and expertise to develop community-based partnerships, create and implement outreach programs and apply her communication skills for media relations. Stephanie's public service career included working as a Police Officer, Program Manager, and Community Affairs Officer for the Manhattan Beach Police Department. In these roles, Stephanie had supervisory responsibilities, managed budgets, performed training and interviewed/selected applicants. Stephanie also served as a DARE program coordinator for the City of Redondo Beach. Stephanie earned her Bachelor of Science degree from Chapman University in Orange California. Ken P�eiffer, Cannabis Project Manager As Cannabis Project Manager, Ken assists our Northern California clients. He has 34 years' experience working in various business tax compliance roles with the State Board of Equalization, including 29 years in management. Most recently he served as Business Taxes Administrator III Board of Equalization, Director Field Office Cannabis Compliance Workgroup, where he was responsible for running workshops and conducting regulatory research. He also served as Director, Cannabis Compliance Pilot Project to study and Hd11:4311 12 C O M P A N I E S • 05/01/2017 CC Meeting Agenda Page 119 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 report on regulatory best practices, identify barriers to voluntary compliance, and recommend regulatory and administrative changes to increase compliance in the medical marijuana industry. Ken has a Bachelor's degree in Business Administration from California State University, San Bernardino and continued his studies in the graduate program at California State University, San Bernardino in Business Administration and Management. Elizabeth Eumurian, Senior Analyst Elizabeth Eumurian is a Senior Analyst in HdL's Audit Department. Elizabeth previously worked for a large financial institution analyzing data for reporting anomalies and performing financial audits. She has also worked as a senior auditor in the entertainment industry. In this role, Elizabeth executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. Elizabeth earned her Bachelor of Arts degree in History from California State University, Fullerton. Adam Crabtree,CEO of Nationwide Compliance Specialists (HdL Strategic Partner) Adam Crabtree is the Founder and CEO of Nationwide Compliance Specialists, Inc. (NCS), headquartered in Denver, Colorado. After graduation, Adam began his career in banking, managing sales, operations and compliance for a Tier 1 bank. It was there that he recognized the inherent flaws and systemic disconnect between banks, state government, and the Cannabis Industry. Relying on his background in banking, his education, and his analytical acumen, he began to dig into the pain points that are at the center of these issues. It was at this point that the core of the NCS platform, the patent-pending predictive analytical algorithm, was born. The algorithm was written to gather numerous, seemingly unrelated, data points and analyze the interplay between them. After a successful testing period, NCS transformed the algorithm into a high-powered, near-real time, analytics engine capable of aggregating and analyzing tens of millions of data points that are then transformed into clear, concise, detailed reports. These reports are used to assist in decision-making and resource allocation in the financial, regulatory and governmental sectors. The NCS partnership with HdL has established a "one of a kind"financial auditing program which will help ensure that cannabis businesses are properly reporting taxes, fees and other data required by state and local agencies. Adam's e pertise with identifying and recognizing financial banking issues has given him the oppo'=ity to work collaboratively with state and local officials as well as financial institutions in Colorado and California. He is often requested to conduct presentations about the current challenges for the Cannabis Industry and how the use of advanced analytics can help government overcome them. In addition, he has conducted presentations to the California State Assembly, Alaska Bar Association, State Board of Equalization, Native Nation, and numerous elected officials spanning from Hawaii to Massachusetts. Adam is a proud three-time graduate of the University of Colorado (BA, MBA, MSF). H d I fol ri 13 COMPANIES 05/01/2017 CC Meeting Agenda Page 120 of 131 I Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 Johan Klehs — Lobbyist The firm engages Johan Klehs as its lobbyist to represent client interests in matters before the State Board of Equalization and the California State Legislature. In statewide office, Mr. Klehs served as Chair and a Member of the State Board of Equalization as well as a Member of the Franchise Tax Board. He also served 14 years as a Member of the California State Assembly and 4 years as a Member of the San Leandro City Council. In the Assembly, Mr. Klehs chaired the Assembly Revenue and Taxation Committee longer than any individual in California's history. 2. Proven Track Record HdL has partnered with over 50 agencies on cannabis-related projects. Our scope of work includes all the requirements set forth in the Request for Qualifications and Quotations. Our services have included ordinance review, community outreach, merit-based application development and support, permitting process, cost recovery,fiscal analysis and compliance reviews. References include: Satwant Takhar Administrative Services Director City of Marysville Phone: 503.749.3935 Email: stakhar(cDmarvsville.ca.us Mic Steinmann Community Development Director City of Greenfield Phone: 831.674.5591 Email: msteinmann(d)ci.greenfield.ca.us Tom Weil City Manager City of California City Phone: 760.373.7170 Email: Citymgr(a)Californiacity-ca.gov Chris Callihan City Attorney City of Salinas Phone: 831.758.7201 Email: chris.callihan(c_ci.salinas.ca.us Hdcl`rmpl 14 COMPANIES 05/01/2017 CC Meeting Agenda Page 121 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 David Garcia City Attorney City of Lynwood Phone: 310.603.0220 Email: david.garcia(a-)_tafoyagarcia.com Michael Montgomery City Attorney City of Maywood Phone: 323.562.5700 Email: mbmontgomery(cDhotmail.com 3. Qualified Staff for Public Outreach HdL has worked with many local agencies to provide the services like those requested in this RFP. We are pleased to provide these work samples for your review. David McPherson While working for the City of Oakland, David McPherson became the first Tax Administrator in the Country to successfully tax, audit and regulate medical marijuana businesses. He was instrumental in working with community stakeholders, public safety interests and policymakers to develop thoughtful and responsible regulations for cannabis- related businesses. This work ultimately resulted in the successful passage of Ballot Measures F and V which levied a Cannabis Business Tax generating millions in annual tax revenues for the City. Through its marijuana services contract with the City of Greenfield, HdL was requested by the City's Police Chief to assist with mitigating potential litigation and political corruption charges resulting from unfair and undue influences in the development of the City's marijuana business program. David McPherson assessed the situation and assumed responsibility for implementing the City's Marijuana Management Program. The HdL team successfully mitigated the situation by establishing a transparent process which received major support from policymakers, community stakeholders and the Cannabis Industry. Matt Eaton The City of Boulder began procedures to alnnex a small unincorporated section of land which contained 13 licensed marijuana businesses. The business owners refused to be licensed by the City of Boulder, expressing concerns that it was Boulder's desire to use the annexation as an excuse to put all 13 locations out of business. HdE4JV1 15 COMPANIES 05/01/2017 CC Meeting Agenda Page 122 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 The business owners initiated a public relations campaign and they engaged marijuana industry lobbyists to assist their efforts. As the annexation proceedings neared a close the marijuana businesses became increasingly argumentative. In his capacity as a state regulator, Matt Eaton negotiated with both parties to facility a smooth license transition. Matt worked with the marijuana business owners and lobbyists to identify and resolve some of the immediate regulatory violations as they pertained to the physical license premises. He was also responsible for communicating with both City and County officials to resolve licensing concerns. Matt's efforts facilitated a seamless state license transfer from one license authority to the other in addition to successfully addressing and resolving all industry concerns. Mark Lovelace As Chair of the Humboldt County Board of Supervisors in 2011 and 2016, Mark Lovelace led the Board through over 100 meetings and public hearings on many contentious issues including development of two cannabis cultivation ordinances and the County's General Plan Update. As Humboldt County's representative on the California State Association of Counties (CSAC), Mark encouraged CSAC to take up the controversial topic of medical marijuana regulation. In 2010, CSAC formed its Medical Marijuana Working Group and appointed Mark as Co-Chair. Over the next seven years, Mark chaired and facilitated over 20 workshops, forums, presentations and panel discussions on the topic, helping to greatly expand the knowledge base on this complex issue and elevating the discussion to a legitimate policy issue. Mark also succeeded in advancing the first-ever medical marijuana policies for CSAC's legislative platform in 2014. In 2014, Mark began working with the CEO of neighboring Mendocino County to plan and organize a regional summit to discuss shared issues regarding marijuana cultivation, regulation and anticipated legalization. Their work resulted in the first-ever regional summit of six North Coast counties in 2015. The summit led to the development of the North Coast Counties Marijuana Policy Statement, which helped guide legislators in development of the MCRSA and won a CSAC Challenge Award as a model of collaboration on a contentious issue. In 2009, Mark revived the Coastal Counties Association, an organization comprised of California's 15 coastal counties. He served as Chair from 2009 through 2014, working to improve the strained working relationship between local governments and the Coastal Commission. In December of 2012, Mark designed and organized a successful and productive joint workshop between Coastal Counties, Coastal Cities and the Coastal Commission. That workshop resulted in real and tangible improvements to the local coastal planning process, including increased staffing assistance to help the Commission process LCP applications faster and a grant program to assist local governments with their workload. Mark's work with the Coastal Counties Association has led to a significant improvement in the Commission's working relationship with local governments. Hdif�_` 16 COMPANIES ' • 05/01/2017 CC Meeting Agenda Page 123 of 131 Development of a Local Marijuana Management Program City of San Fernando, CA March 16,2017 IV. FEES HdL's fee is based on time, materials and travel expenses associated with the execution of the services. Scope of Service Objectives Estimated Hours of Labor/Budget Objective 1: Coordination with City Staff and City Attorney 40 Hours/$10,000 Objective 2: Review Existing Ordinances for Medical and Non- Medical Marijuana 10 Hours/$2,500 Objective 3: Community Outreach 20 Hours/$5,000 Objective 4: Preparation of Medical and Non-Medical Marijuana 155 Hours/$38,750 Program TOTAL 225 Hours/$56,250 Optional: HdL can provide background investigations at $300 per applicant. Hdt':"'rvl / C O M P A N I E S Of ATSPAPPLICATION PROCEDURE TO OPERATE A umrw-a-Boa+ COMMERCIAL CANNABIS BUSINESS IN MAYWOOD The application process to operate a Commercial Cannabis Business("CCB")in Maywood will open on Friday,March 3,2017. Applications will be available at the Building and Planning Department located at City Hall. The following procedure guide outlines the application process, required materials, and other information necessary to operate a CCB in Maywood. BEFORE YOU APPLY: ➢ Review the information to learn about the application process and which documents you will need. ➢ Review the application in its entirety to ensure that it is complete and accurate. ➢ Review the information contained in, submit or comply with: • Local regulations governing Maywood CCB's: Maywood Municipal Code("MMC") Chapters 5-45-03,5-45-04, 5-45-06. • Background authorization form and/or Live Scan • Additional application information:Ordinance No.16-03. • State laws governing CCB's:The California Department of Justice Guidelinesfor the Security and Non-Diversion of Marijuana Grown for Medical Use and Senate Bill 420 (Medical Marijuana Program Act). • Medical Cannabis Safety Act(MCRSA) • Adult Use Marijuana Act(AUMA) • Maywood Zoning Ordinance, MMC Title 9 (1) Application Process: Evaluation and Rating:The selection process shall consist of the following Four Phases: Phase 1: Preliminary determination of eligibility. $3,524 Phase 2: Initial rating. $863 Phase 3: Second rating. $1,400 Phase 4: City Administrator's Final Recommendation to City Council. $1,200 For more information,see Evaluation and Selection Process below. (2) Criminal History Check:As part of Phase 1 of the Application Process each principal/owner must undergo a criminal background check demonstrating that they do not provide"good cause"for denial per MMC Section 5-45.01(M)the background check fee shall be$424.15.The application for the Live Scan will be available on the City website or at the Building and Planning Department in City Hall. Please provide proof of completing your background form and/or Live Scan form by providing proof of a receipt with your application on or before May 3, 2017.This process will be required to meet the minimum threshold qualifications pursuant to MMC Section 5-45.01(M). Principals who do not meet criminal history eligibility requirements will be disqualified. (3) Applicants will be required to obtain a"Zoning Verification Letter"from the Building and Planning Department in City Hall, located at 4319 E.Slauson Avenue to ensure that the location proposal the applicant is applying for meets locational requirements prior to submitting their CCB application.The review process typically takes approximately ten (10)working days and will cost$305.44. Please note that the issuance of a "Zoning Verification Letter" does not mean the written evidence of permission 1 given by the City of Maywood or any of its officials to operate a CCB, nor does it not mean "permit" within the meaning of the Permit Streamlining Act, nor does it constitute an entitlement under the Zoning or Building Code.A regulatory permit for regulating a CCB does not constitute a permit that runs with the land on which the CCB is established. Request for Zoning Verification Letters require a written request from the Building and Planning Department and will not be completed over the counter since it may require additional research and review. (4) Application:Applicants must hand deliver two(2)complete comprehensive and signed copies of the Maywood Commercial Cannabis Business Form,and all attachments,if any,along with a flash drive which contains one comprehensive and signed copy of the application in a pdf format,and payment of$3,524 for the initial application fee. Payment must be made by a certified check,cashier's check or money order made payable to the City of Maywood.Please note the City will not accept cash and Application Fees are non-refundable. A complete application will consist of the following information: a. The Maywood Commercial Cannabis Business Form; b. Background Authorization Form and/or Proof of Live Scan payment for each of the Principals/landlords; and c. All the information about the CCB to be evaluated in Phase 1,Phase 2 and Phase 3 which is described in the Application and Evaluation Process section below in this procedure.The only information that can be submitted after the initial application is proof of property ownership or lease agreement. However,any change in location will require a new"Zoning Verification Letter"and must be submitted with the application package prior to Phase 3 of the selection process. LATE AND INCOMPLETE APPLICATIONS WILL NOT BE CONSIDERED. ( 5 ) Amendments to the Application:Applicants will not be allowed to make amendments to their application or to supplement their application, except as otherwise specifically permitted in these procedures or authorized in writing by the City. During Phase 1,applicants will be notified if any of the Principals/Landlords are ineligible and/or if their application is incomplete and will not move forward in the application process. However, in some cases the City may move forward in the application process to other phases should it anticipate that the Live Scan or background check may be delayed to expedite the application process in a timely manner. In this case Applicants wishing to move forward in the process acknowledge by signing the application that they agree to these terms and should they be disqualified because of a background or a Live Scan disqualification they will not be eligible for a refund of any fees collected resulting from the modification of this procedure. (6) Payment of Application Fees:The individual designated as the CCB contact on the application will be notified by e-mail as to whether the application is advancing to Phase 2 and,subsequently,to Phase 3. A payment of$863 will be due before Phase 2 and a payment of$1,400 will be due before Phase 3. As part of Phase 4 all eligible Applicants as determined by the Ordinance or by resolution will be presented to City Council and must pay a fee of$1,200 to move forward for final consideration. Deadlines for these payments will be included in the e-mail notification to the primary contact person. EVALUATION AND SELECTION PROCESS: The evaluation and selection process shall consist of the following four phases: ➢ Phase 1:Determination of Eligibility and Application ➢ Each Principal must undergo a criminal history check demonstrating compliance with the eligibility requirements of MMC Section 5-45.01(M)and 5-45.03. ➢ Applications must be complete to be considered. Applications will be considered complete only if they include all information required for Phases 1, 2 and 3. ➢ Proposed location of business. ➢ Execute an agreement indemnifying the City from liability. 2 ➢ Phase 2:Initial Rating(1,500 Points) ➢ Applications will be evaluated based on the following criteria: ■ Proposed Location of business (200 Points) ■ Business Plan (400 Points) ■ Neighborhood Compatibility Plan (300 Points) ■ Safety and Security Plan (300 Points) ■ Air Quality Plan (100 Points) ■ Labor and Employment Plan (200 Points) ➢ Those applicants who scored a minimum of 80% in Phase 2 will move onto Phase 3. ➢ Phase 3:Second Rating(2,500 Points) ➢ All applications who score at least 80%in Phase 2,will be interviewed and evaluated by the Selection Committee based on the criteria listed below. ➢ Prior to the scheduling of the interviews in Phase 3 each of the applicants will be required to have their proposed site inspected by the assigned City designee to ascertain current conditions of the facility. ➢ The second ranking will be scored based on the following criteria: ■ Final Location(proof of ownership or a signed and notarized statement from the Property Owner(200 Points) ■ Business Plan (300 Points) ■ Community Benefits(300 Points) ■ Enhanced Product Safety(200 Points) ■ Environmental Benefits(200 Points) ■ Labor&Employment (200 Points) ■ Local Enterprise(200 Points) ■ Neighborhood Compatibility Plan (200 Points) ■ Qualifications of Principals(300) ■ Safety and Security Plan (200 Points) ■ Air Quality Plan (200 Points) ➢ After all the applicants from Phase 3 scores have been tabulated they will be combined with Phase 2 to establish a new ranking of the top applicants.All the applicants who continued to maintain a score of at least 80%will move onto Phase 4 of the selection process. ➢ Phase 4:City Administrator's Recommendations and City Council's Final Approval Phase 4 Steps to be followed: 1. Selection Committee's final review and evaluation. 2. City Administrator presents final rankings and recommendation report to City Council. 3. City Council Approves Final recommendations. After the completionh of the application interviews in Phase 3 and prior to the Selection Committees final review and evaluation,the City reserves the right to request and obtain additional information from any candidate who submitted a proposal. Upon the completion of the final review process,the Selection Committee will tabulate its final scores of the all applicants who were interviewed in Phase 3.The City Administrator will present to the City Council the final ranking along with his/her recommendation in which the City Council may award up to the amount permitted by the Ordinance or Council Resolution pursuant to MMC Section 5-45.01-12.The City Council reserves the right to award a lesser number of permits, or to award no permits at all. Only those applicants on the final list will be eligible to be issued a permit from the initial permit process.The top Applicants which are being recommended by the City Administrator for consideration to the City Council should be prepared to attend a City Council meeting 3 in Maywood to provide a public presentation before the Mayor and City Council introducing their team and providing an overview of their proposal if requested by the City Administrator. ➢ Please note that being awarded a CCB does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for all construction including electrical, plumbing,fire,planning permits or reviews,and any other permits,licenses,or reviews as may be necessary by the relevant departments or governmental entities in charge of said permits.Nor does it guarantee that the plans submitted via the CCB application process meet the standards or requirements in Title 9 or any other permit requirement from other city departments or agencies. DESCRIPTION OF EVALUATION CRITERIA: ➢ Proposed Location. Your application must include the address and a detailed description of the proposed location. (Note that proof of ownership, or a notarized letter of the owner's willingness to lease will not be given any additional consideration until Phase 3). This section should also describe all sensitive uses described in within six hundred (600)feet of the proposed location from the property line of a State accredited K-12 school. The CCB must be in the appropriate zoning and meet all the locational requirements as described in MMC Title 9 and MMC 5-45-02. ➢ Business Plan. With as much detail as possible,the Business Plan should describe: Description of day-to-day operations which meet industry best practices for the specific type of permit in which they will be applying for in the City. ➢ How the CCB will conform to local and state law. See MMC Sections 5-45-3, and MMC Sections 5-45- 04,Ordinance 16-03, and the Attorney General's Guidelinesfor the Security and Non-Diversion of Marijuana Grown for Medical Use. ➢ Mechanisms for ensuring that the CCB will operate on a Not-for-Profit basis until the Medical Cannabis Regulation and Safety Act is fully in effect or until the implementation of the Adult Use Marijuana Act(AUMA) or those requirements stipulated by Chapter 5-45.03 ➢ How medical and retail cannabis will be tracked and monitored to prevent diversion. ➢ A schedule for beginning operation,including a narrative outlining any proposed construction and improvements and a timeline for completion. The Business Plan should include: A budget for construction,operation,maintenance,compensation of employees,equipment costs,utility costs,and other operation costs.The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs,as well as a description of the sources and uses of funds. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. A pro forma for at least three years of operation. ➢ Neighborhood Compatibility Plan. For the proposed location,your application should address how the CCB, including its exterior areas and surrounding public areas,will be managed,to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. Furthermore,a site plan(accurate,dimensioned and to-scale[minimum scale of 1/4"])should be included for each potential location. ➢ Safety and Security Plan. For each proposed location,your application should include: A detailed safety plan. This plan should describe the fire prevention,suppression, HVAC and alarm systems the facility will have in place. It should include an assessment of the facility's fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material,and inhalation issues/threats and will have both 4 r written and physical mechanisms in place to deal with each specific situation. ➢ A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security,including but not limited to general security policies for the facility, employee specific policies,training, sample written policies,transactional security,visitor security,3rd party contractor security,and delivery security. In particular,applications should address ingress and egress access,perimeter security,product security(at all hours), internal security measures for access(area specific),types of security systems(alarms and cameras),and security personnel to be employed.The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. A floor plan showing existing conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale(minimum scale of 1/4"). Community Benefits. The application should describe benefits that the CCB would provide to the local community,such as employment for residents of the City,community contributions,or economic incentives to the City. ➢ Enhanced Product Safety. The application should state how the CCB will ensure enhanced consumer safety as required by State or local law. Environmental Benefits. The application should describe any proposed"green" business practices relating to energy and climate,water conservation,and materials and waste management. Labor&Employment. The application should describe to what extent the CCB will adhere to heightened pay and benefits standards and practices,including recognition of the collective bargaining rights of employees. Specific practices that are subject to consideration include the following: ➢ Providing compensation to and opportunities for continuing education and training of employees/staff(applications should provide proof of the CCB policy and regulations to employees); ➢ Providing a "living wage"to facility staff and employees. Wage scale should be provided in writing for all levels of employment at the facility. "Living Wage" shall mean 150%of the minimum wage mandated by California or Federal law,whichever is greater. ➢ Local Enterprise. The application should state the extent to which the CCB will be a locally managed enterprise whose Principals reside within Maywood and/or the County of Los Angeles. r Qualifications of Principals. The application should include information concerning any special business or professional qualifications or licenses of principals that would add to the number or quality of services that the CCB would provide,especially in areas related to medical cannabis,such as scientific or health care fields. Air Quality Plan. Must demonstrate the air circulation does not impact the employees' health and welfare nor the surrounding businesses. The City's Reservation of Right's The City reserves the right to reject any and/or all proposals, with or without any cause or reason.The City may also, modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting a proposal. Late and incomplete proposals WILL BE REJECTED. Furthermore, a proposal RISKS BEING REJECTED for any of the following reasons: 1. Proposal considered not fully responsive to this request for a permit application. 2. Proposal contains excess or extraneous material not called for in the request for permit application. CONTACT: If you have any questions or would like an update on the status of your application,please contact David Mango at 323-562-5721 or by emailatdavid.mango@citvofmavwood.ore. 5 MA j- DATE STAMP HERE !T Cityof Maywood INCORPOMTSD SEPTEMSHR•2•I9lq Building and Planning Department 4319 E. Slauson Ave. FEE PAID: tlFO Maywood,CA 90270 (323)562-5723 COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION FORM Business Name: Business Primary Contact: Contact Title: Contact's Mailing Address: Contact Phone Number: Email: 24-Hour Contact Information: Type of Permit being requested: Please select from one of the following categories for which you are applying for a Commercial Cannabis Business Permit Application. A separate application must be completed for each category type in which you are submitting for consideration along with a separate fee(Cultivation, Dispensary,Distribution,and Manufacturing). ❑Cultivation ❑Dispensary ❑Distribution ❑Manufacturing ❑Research& Development ❑Please check this box to indicate whether there are other related applications For details about the information required as part of the application process,please see the Implantation Procedures to Operate a Commercial Cannabis Business in Maywood,Ordinance 16-03 and additional requirements to complete the application process.All these documents can be found on the City of Maywood website: www.citNofmaN,wood.com. Commercial Cannabis Business Permit Application Page 1 of 12 � r Phase II Section A: Principal Background Information(Must be signed by all Principals) Under penalty perjury,I acknowledge that I have personal knowledge of the information stated in this application and that the information contained herein is true.I also understand that the information provided in this application, except the Safety and Security Plan in Section C and certain confidential information such as driver's license and social security number which can be redacted,may be public information and subject to disclosure under the California Public Records Act. Principal Name: Principal Title: Principal Telephone Number: Principal Home Address: Principal Signature: Date: Attachments: Proof of status as a qualified patient or primary caregiver(State card or doctor recommendation) Receipt from background check(Live Scan) Picture of applicant(two(2)passport quality photographs 2x2) Copy of Social Security Card Proof of address(DMV-issued ID/Driver's license,and/or recent utility bill under the Principal's name) Staff Use: Pass Background check Principal Name: Principal Title: Principal Telephone Number: Principal Home Address: Principal Signature: Date: Attachments: Proof of st�tus as a qualified patient or primary caregiver(State card or do�tor recommendation) Receipt from background check(Live Scan) Picture of applicant(two(2)passport quality photographs 2x2) Copy of Social Security Card Proof of address(DMV-issued ID/Driver's license, and/or recent utility bill under the Principal's name) Staff Use: ❑Pass Background check Commercial Cannabis Business Permit Application Page 2 of 12 Principal Name: Principal Title: Principal Telephone Number: Principal Home Address: Principal Signature: Date: Attachments: Proof of status as a qualified patient or primary caregiver(State card or doctor recommendation) Receipt from background check(Live Scan) Picture of applicant(two(2)passport quality photographs 2x2) Copy of Social Security Card Proof of address(DMV-issued ID/Driver's license,and/or recent utility bill under the Principal's name) Staff Use: ❑ Pass Background check Add more pages as necessary to accommodate signatures of all Medical Marijuana Business Principals. 1. List whether,the applicant(s)has other licenses and/or permits issued to and/or revoked from the applicant, in the three years prior to the year of the permit application,such other licenses and/or permits relating to similar business activities as in the permit application. If yes,please list the type,current status, issuing/denying for each license/permit. (Please attach a separate document explanation if necessary) 2. List any and all partners who have been found guilty of a violent felony, a felony or misdemeanor involving fraud,deceit,embezzlement, or moral turpitude, or the illegal use, possession,transportation,distribution or similar activities related to controlled substances. As defined in the Federal Controlled Substance Act, with the exception of medical cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996. (Please attach a separate document explanation if necessary) Section B: Business Organization Status 1. Describe the Commercial Cannabis Business organizational Status: Attach proof of status,such as articles of incorporation,by-laws,partnership agreements,and other documentation as may be appropriate or required by the City. Commercial Cannabis Business Permit Application Page 3 of 12 Section C: Commercial Cannabis Business Description and Location 1. Statement of Purpose of Commercial Cannabis Business (A separate sheet may be attached): 2. Proposed Location of Business: 3. Name and Address of Property: 3b. Property Owner Acknowledgment(Under penalty of Perjury): 4. Name and address of school closest to Proposed Location: S. Name and Address of existing alcohol related establishment closest to Proposed Location: 6. Have you received a Zoning Verification Letter?(Please check appropriate response) Yes (If yes, include documentation with this section of the application) No 7. Description of neighborhood around the proposed location(surrounding uses,nearby sensitive uses Such as schools,churches, parks, daycares, or libraries),transit access to site,etc.(A separate sheet may be attached) 8. Site Plan must be dimensioned and show the entire parcel including parking and additional structures.In addition,please,show elevations and photos of proposed location(Attach to application). If any exterior alterations are proposed for existing building, also attach proposed site plans(accurate,dimensioned and to-scale [minimum scale of should be included for each potential location and elevations. 9. Floor Plans(Attach to application accurate,dLensioned and to-scale[minimum scale of 114"1 should be included for each potential location). If any interior alterations are proposed for the existing building, also attach proposed floor plans. 10. Signage Plan 11. Vicinity Map 12. Photos of the Site and Building(s) Commercial Cannabis Business Permit Application Page 4 of 12 Section D: Requires supplemental information This information is requiredfor this application to be considered complete.Attach the following reports to the application. For explanation about the information required,see the implementation procedures handout. ❑ Business Plan ❑ Neighborhood Compatibility Plan ❑ Safety and Security Plan ❑ Acknowledgement of operating guidelines ❑ Onsite manager statement ❑ Indemnity of City by applicants ❑ Insurance policy naming city as additional insured ❑ Reimbursement Agreement Phase III Section E: Final Location Information Only one site per application can be considered at this point. Attach proof of ownership of the site or signed and notarized statement from the owner. Section F: Essential Supplemental Information This information is required and you must submit this as part of meeting the requirement for a completed application. Check the box evidencing that you have read the Description of Evaluation Criteria related to these specific categories in the Implementation Procedures and attach the relative report(s)to the application. ❑ Enhanced Product Safety ❑ Environmental Benefits ❑ Community Benefits ❑ Labor and Employment ❑ Qualifications of Principals Commercial Cannabis Business Permit Application Page 5 of 12 Staff Use Only: Date of initial application: Number assigned to application: Date fee received to Phase II: Date application reviewed for Phase II: Point awarded in Phase II: ❑Continued to Phase III ❑ Denied Date fee received for Phase III: Date proof of ownership was verified or a signed and notarized statement from the property owner was received for Phase III: Date application reviewed for Phase III: ❑ Approved ❑ Denied Date fee received for Phase IV: Date application reviewed for Phase IV: ❑Approved ❑Denied Commercial Cannabis Business Permit Application Page 6 of 12 ACKNOWLEDGEMENT OF CULTIVATION OPERATING STANDARDS AS SET FORTH IN THE CITY OF MAYWOOD ORDINANCE NO. 16-03 The undersigned Management Members, on behalf of the herein Medical Marijuana Cultivation Permit applicant, declare under penalty of perjury that they have read and understand the attached provisions of City of Maywood, Ordinance No. 16-03, and shall, collectively and individually, ensure that neither the Medical Marijuana Collective nor its members and Management Members shall engage in the following activity that violates the Operating Conditions set forth in City of Maywood,Ordinance No. 16-03,which states in relevant part that no Medical Marijuana Collective shall: (A) Only operate at a location zoned by the City of Maywood. (B) Operate only on a property within the C (Town Center Commercial), CM (General Commercial) M (Manufacturing)zoning designations and not within a 600 foot radius of a State accredited K-12 school. (C) Fully Enclosed and Secure Facility. The Medical Marijuana cultivation facility shall be fully enclosed and secure structure.All marijuana shall be kept in a secured manner during business and non-business hours.Entrance to the facility shall be locked at all times,and under control of staff of the cultivation facility. (D) Alarm.The facility shall be secured with an alarm system and monitored by a recognized security company. (E) No Distribution to the Public. The medical marijuana cultivation facility shall not distribute, sell, dispense, or administer marijuana out of its facility to the public. The medical marijuana cultivation facility shall not be operated as a dispensary. (F) No Visible Cultivation. No cultivation of Medical Marijuana at the Property shall be visible with the naked eye from any public or other private property, nor shall cultivated Medical Marijuana or dried Medical Marijuana be visible from the building exterior. No cultivation shall occur at the Property unless the area devoted to the cultivation is secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry. (G) No Adverse Effects. The Medical Marijuana facility shall not adversely affect the health or safety of the nearby residents by creating dust,glare,heat,noise,smoke,traffic,vibration,or other impacts,and shall not be hazardous due to use or storage of materials,processes,products or wastes. (H) Legal Compliance with State and City Laws. The Medical Marijuana Cultivation facility shall comply fully with all of the applicable restricti ns and mandates set forth in state law, including without li itation the Attorney General Guidelines the med cal marijuana facility shall comply with all size requirements for such facilities imposed by state law.The facility shall not engage in any activities not allowed at cultivation facilities pursuant to State law.The facility shall comply with all horticulture,labeling,processing,and other standards required by State law.The building in which the facility is located shall fully comply with all applicable rules,regulations,and laws of the City and State. (I) Legal Structure.The medical marijuana facility shall operate within a legal structure compliant with all laws of the State of California. Commercial Cannabis Business Permit Application Page 7 of 12 (J) No Onsite Consumption. On site smoking, ingestion, or consumption of marijuana or alcohol shall be prohibited on the premises of the medical marijuana cultivation facility. Moreover, the building entrance to the Medial Marijuana Cultivation facility shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming marijuana on the premises or in the vicinity is prohibited. (K) Signage. Signage for the Medical Marijuana Cultivation facility shall be limited to the name of the business only and shall be in compliance with the city's sign code, and no advertising or companies, brands, products, goods and/or services shall be permitted. Signage shall not include any drug-related symbols. (L) No Alcohol.No alcohol shall be sold,stored,distributed or consumed on the premises. (M) Physician Services. Physician services shall not be provided on the premises of the facility. (N) Storage of Marijuana. No dried medical marijuana shall be stored at the property in structures that are not completely enclosed,in an unlocked vault or safe,in any other unsecured storage structure,or in a safe or vault that is not bolted to the floor of the Property. (0) Insurance. The Medical Marijuana Cultivation facility agrees to carry insurance in an amount acceptable to the City.The facility also agrees to name the City of Maywood as an additionally insured. (P) Operate with insufficient odor absorbing ventilation and exhaust systems; (Q) Operate without a quality closed circuit security camera with not less than thirty days of storage; We, and (Printed Name of Property Owner) (Printed Name of Collective/Cooperative Operator) Collectively acknowledge that we have been provided a copy of the Medical Marijuana Cultivation Facility operating standards listed in the City of Maywood, Ordinance No. 16-03. We further acknowledge that we have read, understand, and shall ensure compliance with the aforementioned operating standards and all applicable provisions of the City of Maywood, Ordinance No. 16-03 at the medical marijuana cultivation facility entitled (Name of Collective/Cultivation facility listed on the application) We certify under penalty of perjury that the foregoing information is true and correct. Executed this day of ,2017,in Maywood,California. (Day) (Month) Signature of PropertN• Owner Printed Name and Title Signature of Cultivation/Collective Operator Printed Name and Title Commercial Cannabis Business Permit Application Page 8 of 12 MAYWOOD CANNABIS FACILITY ON-SITE MEMBER CONTACT STATEMENT The undersigned, on behalf of Collective,hereby designates (Name of Corporation/Cultivation Facility) as the on-site Community Relation's representative to whom the public or (Name of On-Site Manager) City can provide notice to if there are operating problems or issues relating to the Maywood Cannabis Facility.The Medical Marijuana Cultivation Facility shall make every good faith effort to encourage residents to call this person to try to solve operating problems, if any,before any calls or complaints are made to the police or planning departments. Signature of On-Site Manager Printed Name&Title Address Phone Number Facsimile Number Email Address I declare under penalty of perjury that I have read the forgoing application and all information, statements, verifications, declarations and authorizations made, attached to and contained herein, and that I have personal knowledge of the information contained in the application, and that the information contained in the application is true and correct, and that the applicatio was completed under the supervision of the Management Me 7 bers. Executed this day of 2017,at Maywood,California. Commercial Cannabis Business Permit Application Page 9 of 12 STATEMENT OF AUTHORIZATION TO INDEMNIFY THE CITY OF MAYWOOD The undersigned,on behalf of ,hereby authorizes and agrees to (Name of Corporation/Cannabis Facility) indemnify the City of Maywood, and to defend at its sole expense, any and all action against the City of Maywood, its agents, officers, and employees because of any and all issues relating to the approval of said Cannabis Facility in the City of Maywood. The undersigned,on behalf of ,also agrees to reimburse the City (Name of Corporation/Cannabis Facility) of Maywood for any court costs and attorney fees that the City of Maywood may be required to pay as a result of such action. This form MUST be signed by each applicant Executive or Management Member. Signature of Management Member Printed Name&Title Date Signature of Management Member Printed Name&Title Date Signature of Management Member Printed Name&Title Date This release may be executed in two or more counterparts,each of which shall be deemed an original,and all of which taken together shall constitute one and the same instrument. Facsimile signature(s) shall be deemed the equivalent of original signatures. I declare under penalty of a 'u that I have rea�the forgoing application and all information statements veriLations P h' P rJ rY g g PP � , declarations and authorizations made, attached to and contained herein, and that I have personal knowledge of the information contained in the application, and that the information contained in the application is true and correct, and that the application was completed under the supervision of the Management Members. Executed this day of 2017, at Maywood, California. Commercial Cannabis Business Permit Application Page 10 of 12 AUTHORIZATION TO INSURE CITY OF MAYWOOD CANNABIS FACILITY The undersigned,on behalf of Collective,hereby agrees to carry insurance for (Name of Corporation/Cultivation Facility) the Medical Marijuana Cultivation facility in an amount acceptable to the City of Maywood. The undersigned,on behalf of Collective,also agrees to name the City of (Name of Corporation/Cultivation Facility) Maywood as an additionally insured on said policy. This form MUST be signed by each applicant Executive/Management Member. Signature of Management Member Printed Name&Title Date Signature of Management Member Printed Name&Title Date Signature of Management Member Printed Name&Title Date This release may be executed in two or more counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument.Facsimile signature(s)shall be deemed the equivalent of original signatures. I declare under penalty of perjury that I have read the forgoing application and all information, statements, verifications, declarations and authorizations made, attached to and contained herein, and that I have personal knowledge of the information contained in the application, and that the information contained in the application is true and correct, and that the application was completed under the supervision of the Management Members. Executed this day of 2017,at Maywood, California. Commercial Cannabis Business Permit Application Page 11 of 12 STATEMENT OF AUTHORIZATION TO REIMBURSE THE CITY OF MAYWOOD The undersigned,on behalf of Collective,hereby agrees to fully reimburse the (Name of Corporation/Cultivation Facility) City of Maywood for any and all costs the City of Maywood may incur as a result of the existence of Cannabis Facility in the City of Maywood and the implementation of the City of Maywood,Ordinance No. 16-03. The undersigned,on behalf of Collective,also agrees to provide the City with (Name of Corporation/Cultivation Facility) Revenue to offset the potential deleterious effects of the location of the Medical Marijuana Cultivation facility. This form MUST be signed by each applicant Management Member. Signature of Management Member Printed Name&Title Date Signature of Management Member Printed Name&Title Date Signature of Management Member Printed Name&Title Date This release may be executed in two or more counterparts,each of which shall be deemed an original,and all of which taken together shall constitute one and the same instrument. Facsimile signature(s) shall be deemed the equivalent of original signatures. I declare under penalty of perjury that I have read the forgoing application and all information, statements, verifications, declarations and authorizations made, attached to and contained herein, and that I have personal knowledge of the information contained in the application, and that the information contained in the application is true and correct, and that the application was completed under the supervision of the Management Members. Executed this day of 2017,at Maywood,California. Commercial Cannabis Business Permit Application Page 12 of 12 City of Nevada City "x Planning Department 317 Broad Street, Nevada City CA 95959 Phone: 530-265-2496 Email: Amy.WolfsonLaNevadaCityCA.gov MEDICAL CANNABIS DISPENSARY PERMIT APPLICATION FORM Please submit a minimum of five (5) bound hard copies and one (1) digital copy (usb drive or CD) of all application material. Initial application deadline is August 31, 2017 by 5 p.m. (P.S.T) Business Name: Business Primary Contact: Contact Title: Contact's Mailing Address: Phone#: E-mail: 24-Hour Contact Information:` For details about the information required as part of the application process, please see the Implementation Procedures to Operate a Medical Cannabis Business in Nevada City, Ordinance No. 2017-06 and additional requirements in order to complete the application process.All these documents can be found on the Nevada Citywebpage:www.NevadaCitVCA.gov STAFF USE ONLY: Fees Date Paid staff initials Phase 1 $2,�61.33 Phase 2 $1,773.40 Phase 3 $2,091.27 Phase 4 $4,140.30 Phase II Section A: Principal Background Information (Must be signed by all Principals) (Add more pages as necessary to accommodate signatures of all Medical Cannabis Business Principals.) Underpenalty of perjury, I acknowledge that I have personal knowledge ofthe information stated inthis application and that the information contained herein istrue. I also understand that the information provided inthis application, exceptthe Safety and Security Plan in Section C and certain confidential information such as driver's license and social security number,which canbe redacted, may be public information and subject to disclosure under the California Public Records Act. Principal Name: Principal Title: Principal Home or Cell Phone: Principal Home Address: Principal Signature: Date: Attachments: If business will operate as a collective/cooperative provide proof of status as a qualified patient or primary caregiver (State card or doctor recommendation) Receipt from Live Scan check Picture of applicant (two passport quality photographs 2X2) Copy of Social Security Card Copy of Driver's License, OMV issued ID Card or Passport Proof of address (OMV-issued ID/driver's license, and/or recent utility bill under Principal's name) Staff use only: Pass background check_ Principal Name: Principal Title: Principal Home or Cell Phone: Principal Home Address: Principal Signature: Date: Attachments: If business will operate as a collective/cooperative provide proof of status as a qualified patient or primary caregiver (State card or doctor recommendation) Receipt from Live Scan check Picture of applicant (two passport quality photographs 2X2) Copy of Social Security Card Copy of Driver's License, OMV issued ID Card or Passport Proof of address (OMV-issued ID/driver's license, and/or recent utility bill under Principal's name) Staff use only: Pass background check_ Principal/Partner History: 1. List whether, the applicant(s) has other licenses and/or permits issued to and/or revoked from the applicant, in the three years prior to the year of the permit application, such other licenses and or permits relating to similar business activities as in the permit application. If yes, please list the type, current status, issuing/denying for each license/permit. (Please attach a separate document explanation if necessary) 2. List any and all partners who have been found guilty of a violent felony, a felony or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude, or the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substance Act, with the exception of medical cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996. (Please attach a separate document explanation if necessary) Section B: Business Organization Status 1. Describe the Medical Cannabis Business organizational status: Attach proof of status, such as articles of incorporation, by-laws, partnership agreements, and other documentation as may be appropriate or required by the City. Section C: Medical Cannabis Business Description and Location 1. Statement of Purpose of Medical Cannabis Business (a separate sheet may be attached, labeled Section C.1): 2. Proposed Location of Business: 3. Name and address of property owner: 4. Name and address of school(s) and/or public park(s) closest to Proposed Location: 5. Have you received a Zoning Verification Letter? (Please check the appropriate response) Yes (If yes, include documentation with this section of the application) No 6. Description of neighborhood around the proposed location surrounding uses, nearby sensitive uses (such as schools, churches, parks, daycares, or residents), transit access to site, etc. A separatesheet may be attached and labeled Section C.6. 7. Site plan must be dimensioned and show the entire parcel including parking and additional structures [recommended scale of 1"= 20']. In addition, please attach elevations and photos of proposed location. If any exterior alterations are proposed for the existing building, also attach a proposed site plan that is accurate, dimensioned and to-scale for each potential location and include elevation details. The scale should accommodate an accurate site plan on a sheet of paper no larger than 11X 17. 8. Floor Plans shall be attached and shall be accurate, dimensioned and to-scale [recommended scale of 1/4"= 1] for each potential location. If any interior alterations are proposed for the existing building, also attach proposed floor plans. The scale should accommodate an accurate floor plan on a sheet of paper no larger than 11X 17. 9. Signage Plan. 10. Vicinity Map. 11. Photos of the site and building(s). Section D: Required supplemental information This information is required for this application to be considered complete. Attach the following reports to the application. For explanation about the information required, see the Implementation Procedures handout. Business and Parking Plan Neighborhood Compatibility Plan ❑ Safety and Security Plan PHASE III Section E: Final Location Information Only one site per application can be considered at this point. Attach proof of ownership of the site OR signed and notarized statement from the owner. Section F: Essential Supplemental Information This information is required and you must submit this as part of meeting the requirements for a completed application. Check the box evidencing that you have read the Description of Evaluation Criteria related to these specific categories inthe Implementation Procedures and attach the relative report(s)to the application. Enhanced Product Safety Environmental Benefits (Water/Energy Efficiency Measures) Community Benefits 1-1 Labor and Employment Local Enterprise Qualifications of Principals 1 STAFF USE ONLY: Date of initial application: File Number assigned to application: Date fee received for Phase: Date application reviewed for Phase II: Points Awarded in Phase 11: ❑ Continued to Phase III []Denied Date fee received for Phase III: Date Proof of ownership was verified or a signed and notarized statement from the property ownerwas received for Phase 111: Date application reviewed for Phase III: ❑ Approved ❑ Denied Date fee received for Phase IV: Date application reviewed for Phase IV: ❑ Approved ❑ Denied CITY OF DEPARTMENT OF FINANCIAL MANAGEMENT LONGBEACH BUSINESS SERVICES BUREAU Medical Marijuana Distribution Operating Plan An operating plan is required for all medical marijuana distribution businesses. The operating plan must meet, at a minimum, the requirements as set forth in LBMC Chapter 5.90. Any statements made in the Operating Plan may not supersede any local and/or state laws, rules, and regulations. Each section of the operating plan should be clearly labeled with a cover sheet for each section. The operating plan must have page numbers in the bottom right hand corner. DO NOT staple or bind the operating plan. You may submit the Medical Marijuana Business License Application and the Distribution Operating Plan in a three ring binder or in an envelope. Both the Medical Marijuana Business License Application and the Distribution Operating Plan must be submitted at the same time. General Description of Services Each applicant should submit an operating plan generally describing their proposed business model. Identify whether you will be distributing your own products, another businesses product, or both. The operating plan should provide an account of the proposed day to day operations of the facility, including a description of each step in the distribution process (transportation, storage, testing logistics, quality assurance, packaging, labeling, etc.) that the business will engage in, and where each step will occur in the facility. Plans should also provide a general description of the types of marijuana products that will be distributed from the facility. Security Applicants should provide a detailed description of their security plans. The security component should be broken down into operational and facility security categories. Appropriate plans will have considered all potential security threats and planned for any contingency needed for these situations. A successful applicant will have both written and physical mechanisms in place to deal with each specific situation. A detailed schematic diagram (no larger than 11" x 17") of alarm systems and security camera placements that also details when all security measures will be operational should be provided. Operational Security Applicants will detail their operational security including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, confidential information security, visitor security, and 3rd party contractor security. This includes storing all finished medical marijuana products in a secured and locked room, safe, or vault, and establishing limited laccess areas accessible only to authorized personnel. The security plan should include measures to prevent the diversion of marijuana to persons under the age of 18. The security plan should also consider measures to prevent individuals from remaining on the premises if they are not engaging in activity expressly related to the operations of the business, and ensure that medical marijuana is not inhaled, smoked, eaten, ingested or otherwise consumed on the property, or in the parking areas of the property. This list is not intended to fully capture all areas for applicant consideration but to guide applicants into considering all possible security concerns related to the operation of a medical marijuana distribution facility. The applicant should give consideration to every possible scenario and provide a response to those scenarios. Medical Marijuana Distribution Operating.Plan Page 1 Facility Security Applicants should provide a description of the overall facility security. Identify if the facility is a distinct building or warehouse or if products will be distributed from a licensed cultivation or manufacturing facility. In particular, the applicant should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems, and security personnel that will be employed. The security plan should describe the enclosed, locked facility (incorporated into the building structure, or securely attached thereto) that will be used to secure or store marijuana and cash when the location is both open and closed for business. The plan should also detail the steps taken to ensure marijuana is not visible to the public. The facility security plan should also discuss the fire and burglar alarm systems. The plan should identify the company monitoring the alarm, and provide confirmation that the company is staffed twenty-four (24) hours a day, seven (7) days a week. Each medical marijuana business shall install and maintain a fully operational digital video surveillance and camera recording system. The facility security plan should further describe the digital video surveillance and camera recording system that will be used to monitor the front and rear of the property, all public right-of-ways and any parking lots under control of the medical marijuana business, all points of ingress and egress at the business, all points of sale within the business, all areas within the business where medical marijuana products are to be prepared for shipment, and all limited access areas within the facility. The video and surveillance system shall, at a minimum, meet the following requirements: • Capture a full view of the public right-of-ways and any parking lot under the control of the medical marijuana business; • Be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the exterior of the property; • Record and maintain video for a minimum of thirty (30) days. Video surveillance and recording records shall be held in confidence by all employees and for legitimate law enforcement activity to resolve criminal activity; • Licensees are responsible for ensuring that all video or surveillance equipment is properly functioning and maintained, so that playback quality is suitable for viewing and the equipment is capturing the identity of all individuals and activities in the monitored areas; • At each transaction location, camera coverage must enable recording of the customer's and employee's facial features with sufficient clarity to determine identity and must record video with such clarity and resolution that all transactions are clearly recorded; • The system shall be capable of recording all monitored areas in any lighting conditions and must be housed in a designated, locked, and secured room or other enclosure with access limited to authorized employees. Licensees must keep a current list of all authorized employees and service personnel who have access to the surveillance system and/or room on the licensed premises; • A sign shall be posted in a conspicuous place near each monitored location on the interior or exterior of the premises which shall be not less than twelve (12) inches wide and twelve (12) inches long, composed of letters not less than one ( 1) inch in height, stating "All Activities Monitored by Video Camera" or "These Premises are Being Digitally Recorded", or otherwise advising all persons entering the premises that a video surveillance and camera recording system is in operation at the facility and recording all activity as provided in this Section; and • All exterior camera views must be continuously recorded 24 hours a day and all interior cameras views shall be recorded during all hours that the facility is open for business. Medical Marijuana Distribution Operating Plan Page 2 Any security measures that exceed these standards are highly desirable. Transportation Applicants should describe the methods that will be used to transport medical marijuana products to and from other medical marijuana businesses. In addition, applicants should detail the security precautions that will be taken to prevent theft or diversion of medical marijuana during transport. This may include securing marijuana products in a locked box affixed to the vehicle, securing the vehicle when unattended, installing alarm systems, motion detectors, or panic buttons within the vehicle, and taking other necessary steps to protect the driver(s) and marijuana products. Product Storage &Tracking The operating plan should describe the methods that will be used to properly store and segregate different batches of medical marijuana goods within the distribution facility. This includes a plan to control temperature and humidity, avoid exposure of medical marijuana products to direct sunlight, and prevent the entry of environmental contaminants such as smoke and dust. The operating plan should also identify how marijuana will be tracked and monitored to prevent diversion and theft. The plan should describe how the distribution business will maintain records of all marijuana product, including the level of detail marijuana inventory will be tracked (e.g. origin of shipment, date of transfer, total weight, expiration/sell-by date, etc.) The plan should provide a description of the point of sale software that the business will utilize to track inventory and sales of medical marijuana, and the internal procedures the business will follow for cash handling and audits. Laboratory Testing & Disposal of Contaminated Products Applicants should also discuss how the distribution facility will ensure proper sampling and testing of medical marijuana products prior to shipment to a dispensary. The plan should describe the steps that the distribution facility will take when notified from a testing agency that the tested marijuana does not meet appropriate health standards. Briefly describe how the business will ensure that rejected marijuana is not released to the public. The operating plan should also describe the methods that will be used to make marijuana waste unusable and unrecognizable, and where marijuana waste will be stored prior to removal from the business. In addition, the plan should describe how the business will transport marijuana waste from the distribution site to a solid waste facility or landfill. Product Complaints Applicants should describe policies for receiving, recording and handling product complaints associated with the use of marijuana provided by the distribution facility. Policies may include: • A process for accepting product complaints at the distribution facility; • Identification of data elements to record a complaint(e.g. name of individual submitting complaint, identity of product used, description of events, etc.) • Review of product complaints from appropriate staff; • Procedure for determining the proper response, which may include contacting the cultivator/manufacturer supplying the product, contacting dispensaries receiving the product, notifying public health authorities; and/or • A process for determining any other additional follow-up that may be needed. Medical Marijuana Distribution Operating Plan Page 3 f � Noxious Chemical Control Applicants should provide a description of what methods will be used to ensure that odor generated inside the distribution facility is not detected outside the business premises. This should include a description of the odor-absorbing ventilation and exhaust system, and how that system will prevent odor from leaving the property. The operating plan may also describe alternative methods to control odors, such as a carbon filtration or other system. Toxic Material Control Applicants should provide a description of any toxic, flammable, or other materials that will be used or kept at the medical marijuana business, the location of such materials, and how such materials will be stored. This should include all materials regulated by a federal, State, or local government that would have authority over the business if it was not a marijuana business. Applicants should also describe methods used to comply with limitations on discharge into the wastewater system of the City, as set forth in the Long Beach Municipal Code Chapter 15.16. Community Involvement Applicants should provide a detailed description of their plans to participate in community service within the City of Long Beach. These plans may include, but are not limited to, involvement with non-profit associations, neighborhood associations, and community groups. Applicants should demonstrate how they intend to provide their local community with community benefits and mitigate any nuisance and/or negative impacts that the facility's existence may cause. Applicants should show how they plan to have minimal nuisance or negative impacts on their neighbors and community. Nuisance/negative impacts include but are not limited to: noise, odor, increased foot or vehicle traffic, increase in waste or water production, impacts to right of way access, and/or increase in safety related concerns. Applicants should detail how they will revitalize the building/site, provide neighborhood improvements, and will be a beneficial/positive neighbor to the neighborhood. Fire Plan Applicants should provide a detailed description of their fire prevention, suppression, alarm and life safety systems. A fire inspection will be required annually to assure the City that adequate fire safety measures remain in place. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. A detailed description of the fire prevention, suppression, alarm and life safety systems that also includes when all fire prevention measures will be submitted for approval and be operational should be required. Employee Safety & Hygiene Applicants should provide a summary of the safety protocols that will be adopted by the distribution facility, including, but not limited to: staff training, protective equipment, hazardous material handling, emergency communication/response, etc. Businesses must conform to all Cal OSHA workplace safety standards, specifically Title 8 of the California Code of Regulations. Applicants should describe the policies and procedures used by the business to help prevent contamination of any marijuana product. This may include hand washing, employee training, use of facemasks/gloves, prohibiting employees who are showing signs of illness, open wounds, sores or skin infections from handling marijuana, etc. Medical Marijuana Distribution Operating Plan Page 4 Labor Relations Applicants should provide a detailed description of their plans regarding labor relations and employee relations. Labor relations include distribution facility ownership partaking in a labor peace agreement with a bona fide labor organization. The employee relations plan should provide a detailed description of employee compensation and benefits, workplace safety, educational opportunities and trainings for employees, and policies put in place against discrimination. Medical Marijuana Distribution Operating Plan Page 5 RESOLUTION NO. 66,711—N.S. ADOPTING RANKING AND ALLOCATION CRITERIA AND PROCEDURE FOR MEDICAL CANNABIS DISPENSARIES WHEREAS, on July 1, 2014, the City Council adopted the first reading of a new Chapter 12.27 of the Berkeley Municipal Code, which establishes operating standards for medical cannabis dispensaries in Berkeley and will take effect thirty days following the second reading of the Ordinance; and WHEREAS, when Chapter 12.27 becomes effective it will permit the operation of a limited number of additional dispensaries in Berkeley; and WHEREAS, the City Council anticipates that there will be more applicants to operate the limited number of additional dispensaries than available slots, and accordingly some system for allocating those limited slots is necessary. NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the Ranking and Allocation Process attached hereto as Exhibit A is hereby adopted. The foregoing Resolution was adopted by the Berkeley City Council on July 1, 2014 by the following vote: Ayes: Anderson, Arreguin, Capitelli, Maio, Moore, Wengraf, Worthington, Wozniak and Bates. Noes: None. Absent: None. Tom Bates, Mayor Attest: Ma k Numai ville, CMC, City Clerk Resolution No. 66,711-N.S. Page 1 of 8 Exhibit A , RANKING/ALLOCATION PROCESS FOR MEDICAL CANNABIS DISPENSARIES INTRODUCTION This process is adopted pursuant to and to implement Berkeley Municipal Code Chapter 12.27. The competitive process and criteria below will be used for determining which Dispensaries may fill any unoccupied slots under the City's 4-dispensary cap, adopted in 2010, and codified in Section 12.26.130. As of the adoption of this Process, there were three operating Dispensaries, and one open slot, however additional slots may become available in the future either as a result of attrition or amendment of Section 12.26.130, or for other reasons. PUBLIC INFORMATION Applications and associated materials in the possession of the City are public records. While certain information will likely be exempt from disclosure, other information will not be, and some information will necessarily be made public as part of the ranking process. In complying with the Public Records Act, the City will make reasonable efforts to keep sensitive information from being disclosed, but cannot guaranty that information an applicant may want to be kept confidential will not be disclosed. The City will make reasonable efforts to notify applicants whenever requests for disclosure of their information are received. The City shall not in any way be liable for the disclosure of any such records or portions thereof if the disclosure is made pursuant to a request under the Public Records Act, and applicants assume the risk of such disclosure by submitting their applications. SUMMARY OF PROCESS The ranking/allocation process shall consist of a single comprehensive application, and four rounds of evaluation, which are summarized below. Round 1: Application and Determination of Eligibility Staff will conduct a background and criminal history check and evaluate whether an application demonstrates eligibility under Section 12.27.030. Each Principal must attain a passing grade on a Medical Cannalpis competency test. Successful lapplicants whose applications meet these requirements will be forwarded on to Round 2. Materials submitted by applicants who do not pass the qualification round will be returned to them, and all copies of those materials will be destroyed. Resolution No. 66,711-N.S Page 2 of 8 Round 2: Initial Ranking — Minimum Qualifications Applicants will be ranked based on criteria below. • Proposed Location(s) of business • Business Plan • Neighborhood Compatibility Plan • Safety and Security Plan The top 10 applicants would move on to Round 3. Round 3: Second Ranking — Bonus Points Points will be awarded based on the categories listed below. The top five applications would move to the Selection process. • Availability of Professional Services • Community Benefits • Enhanced Product Safety • Environmental Benefits • Labor & Employment • Local Enterprise • Location (final) • Qualifications of Principals • Consolidation Round 4: Selection The City Council will then make the final decision from among the top five candidates. DESCRIPTION OF PROCESS A. Round 1 — Application and Determination of Eligibility 1. Application Requirements Before accepting applications, the City will give at least 60 days public notice that applications to operate a Dispensary or Dispensaries will be accepted pursuant Chapter 12.27. The notice shall specify a deadline for submission of applications, as well as the number of Dispensaries for which applications will be accepted. All Applicants will be required to submit an application on a form provided by the City. Applications shall be signed by a Principal under penalty of perjury that she or he has personal knowledge of the information stated in the application and that it is true. Resolution No. 66,711-N.S. Page 3 of 8 The application shall include such information as the City may require that demonstrates compliance with applicable provisions of Chapter 12.27, as well as the following: 1. The name of a single point of contact for the applicant, who shall be a Principal. 2. All information required by Section 12.27.040. 3. A description of the Dispensary and its proposed location(s), including the address of any proposed facility with proof of ownership, lease, and or letter of owner's willingness to lease. A signed lease is not to be given any additional consideration until Round 3. 4. Plans for alteration of any existing buildings. 5. Business Plan. The business plan must contain as much detail as possible on the day-to-day operation of the Dispensary and how it will conform to applicable state and local laws and the Attorney General's Guidelines. The business plan shall describe: mechanisms for ensuring that the Dispensary will operate on a Not-for-Profit basis; a description of how Medical Cannabis will be tracked and monitored to prevent diversion, such as by verifying the status of recommending physicians and retaining all written recommendations from recommending physicians; a schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. The business plan shall include a budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation and maintenance costs, and shall demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds. Proof of capitalization shall be in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. The business plan shall also include a pro forma for at least three years of operation. 6. Neighborhood Compatibility Plan. The application must describe how the Dispensary, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. 7. Location(s). The application must describe the proposed location or locations of the Dispensary, all confronting and abutting uses, transit access and accessibility and nearby sensitive uses. 8. Safety and Security Plan. The application shall include a detailed description of Fire prevention, suppression, HVAC and alarm systems that includes an assessment of the facility's fire safety by a qualified Fire prevention suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. Resolution No. 66,711-N.S. Page 4 of 8 The security plan shall include a description and detailed schematic of the overall facility security. Applicants shall detail their operational security including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular Applicants should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan shall also include an assessment of site security by a qualified security consultant. Security plans shall not be made public. During the evaluation period, security plan details that could aid persons who wish to commit security violations shall be considered to be confidential and shall not be released unless ordered by a court. 9. Environmental Benefits. The application must describe any proposed "green" business practices relating to energy and climate, water conservation, and materials and waste management. Specific "green" practices that are encouraged are: a. maximizing energy efficiency; b. where applicable, applying for and using available PG&E programs for free technical assistance for design and construction of building shell, tenant improvements, building systems and processes; c. using renewable energy; d. reducing transportation emissions (e.g., use of biofuels, electric vehicles); e. using green building measures; f. any other efforts to reduce or offset any greenhouse gas emissions g. reuse and remediation of Brownfield sites; h. water conservation, including recycling and on-site treatment, if permitted i. developing a zero waste plan for operations, j. minimizing packaging and using recycled content, recyclable and reusable materials, throughout the supply chain; k. implementing a reuse plan for materials used, I. providing a prediction of and implementing an operational phase waste stream broken down by refuse, recycled materials and composted materials by volume; m. using organic fertilizers and pest control measures; and n. minimizing use of hazardous or toxic substances and preventing them from entering the soil, air or water. 10.Community Benefits. The application shall describe benefits that the Dispensary would provide to the local community. Examples of such benefits are: a. providing re-entry jobs and job training to the unemployed; b. contributing to/supporting domestic violence prevention programs; c. contributing to/supporting Parks and Recreation Centers, libraries, or funding for arts, culture, and environmental programs; d. contributing to/supporting Children/Youth programs and intervention services; Resolution No. 66,711-N.S. Page 5 of 8 e. contributing to/supporting substance abuse education and rehabilitation programs; f. funding foreclosure prevention and foreclosure abatement programs, including eviction defense following foreclosure; g. provision of high quality Medical Cannabis to low income Members; h. any other neighborhood improvements. 11.Enhanced Product Safety. The application shall state how the Dispensary will ensure enhanced consumer safety by testing for biological and chemical contaminants, specified by the City Manager pursuant to state or federal standards for food, drugs or tobacco. 12. Labor and Employment. The application shall describe to what extent the Dispensary will adhere to heightened pay and benefits standards and practices, including recognition of the collective bargaining rights of employees. Specific practices that are subject to consideration include the following: a. providing compensation to and opportunities for continuing education and training of employees/staff (applications should provide proof of the Dispensary's policy and regulations); b, being a "card check-neutral" facility; c. having obtained pre-existing recognition from a certified labor union; d. being party to a collective bargaining agreement with a certified labor union; and e. providing a "living wage" to facility staff and employees. Wage scale should be provided in writing for all levels of employment at the facility. "Living Wage" • shall mean 200% of the minimum wage mandated by California or Federal law, whichever is greater. 13.Local Enterprise. The application shall state the extent to which the Dispensary will be a locally managed enterprise whose Principals reside within Berkeley and/or the following adjacent cities: Albany, Kensington, Oakland and Emeryville. 14.Availability of Professional Services. The application shall state the extent to which the Dispensary will provide professional services related to the use of Medical Cannabis to Members, whether on- or off-site. Such services may include, but are not necessarily limited to, medical or technical consulting, referrals to providers of such services, mental health services, alternative health care to the extent permitted by state law, diet and nutritional advice, and similar types of services, but shall not include recommending the use of Medical Cannabis. 15.Qualifications of Principals. The application shall include information concerning any special business or professional qualifications or licenses of principals that would add to the number or quality of services that the Dispensary would provide, especially in areas related to Medical Cannabis, such as scientific or health care fields. 2. Determination of Eligibility Resolution No. 66,711-N.S. Page 6 of 8 Staff will undertake background and criminal history checks, verify whether the applications provide complete and accurate information and demonstrate compliance with the eligibility requirements of Section 12.27.030. If an application meets these requirements, each Principal will be required to attain a passing grade on a Medical Cannabis competency test to demonstrate a working knowledge of state and local compliance standards. Applications that include all required information will be considered. Late and incomplete applications will not be considered. Applicants who pass the Medical Cannabis competency test and whose applications meet these requirements will be eligible to continue to Round 2. Determinations in Round 1 will be final and not be subject to appeal. 3. Competitive Ranking Process Applications that pass Round 1 will be reviewed by a three-person panel of City staff designated by the City Manager. The reviewing panel will evaluate applications in each succeeding round based on how well they satisfy the criteria for that round. In evaluating applications, the reviewing panel shall consider the quality and responsiveness of the application with respect to each of the topics covered. The evaluation and ranking of the applications and allocation of Dispensary slots shall lie within the sole judgment and discretion of the reviewers. B. Round 2 — Initial Ranking: Minimum Qualifications In Round 2, the reviewing panel will evaluate each application against the criteria in, and assign points based on, the following table. Topic Maximum Possible Points Proposed Locations 400 Business Plan 300 Neighborhood Compatibility Plan 400 Safety and Security Plan 400 Total possible 1500 The top 10 applicants will move on to Round 3. The reviewing panel will rank the remaining applicants by assigning points in each of the categories in the table below. "Consolidation" points shall be awarded for consolidation with one or more of the other top ten applications. The top five applications, based on the total number of points from Rounds 2 and 3 will then move to Resolution No. 66,711-N.S Page 7 of 8 the Selection process. In the case of a consolidated application, the average number of total points shall be used. C. Round 3 — Second Ranking: Bonus Points Topic Maximum Possible Points Availability of Professional Services 300 Enhanced Product Safety 200 Environmental Benefits 200 Community Benefits 300 Labor & Employment 300 Local Enterprise 500 Location final 500 Qualifications of Principals 500 Consolidation (with applicants that pass 150 for each consolidation, maximum of Round 2) 300 Total possible 2800 plus up to 300 for consolidation D. Round 4 — Selection Within 45 days after Round 3 is completed, each applicant shall conduct a public meeting in the area or areas proposed for its Dispensary. If no location in the immediate area is available, the applicant shall use a community facility that is as near as possible. Notice of such public meetings shall be on a form approved by the City and shall be provided as set forth in BMC Chapter 23B.32 for Use Permit public hearings. Within 5 days after notice of the public meeting is mailed, an applicant shall provide to the City a copy of the notice of the public meeting, a list of addresses to which it was sent, and an affidavit of mailing. An applicant that does not hold a public meeting within this period of time shall be disqualified. After the public meetings are completed the applications shall be presented to the Medical Cannabis Commission, which may make a recommendation to the City Council. The City Council will then establish the final ranking of applications and make its selection from among the top five. Notice of the public meetings of the Commission and Council shall be provided as set forth in BMC Chapter 23B.32 for Use Permit public hearings. Resolution No. 66,711-N.S. Page 8 of 8 r 1. i r THE CITY OF LONG BEACH MEDICAL MARIJUANA BUSINESS LICENSE APPLICATION DEPARTMENT OF FINANCIAL MANAGEMENT BUSINESS SERVICES BUREAU 333 W. Ocean Blvd 4T" FLOOR Long Beach, CA 90802 (562) 570-6211 Ibbiz(d-)long beach.gov Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 1 City of Long Beach Medical Marijuana Business License Application Instructions Definitions • Applicant Name: The applicant name entered on this application is your registered legal entity name. This should be the same business name you used to register with the California Secretary of State. If you are a Sole Proprietor, this is your full legal name. Applicant Name should not be the name of an officer of the legal entity. • Corporation Number: California Secretary of State Corporation Registration Number.When you register your legal entity with the California Secretary of State they will provide you with a corporation registration number. • Ownership Structure: This is the type of business entity associated with your business name. Choices are: For- Profit Corporation, Non-Profit Corporation, Limited Liability Company, General Partnership, Limited Partnership, and Sole Proprietor. • Address and Contact Information: The mailing address, phone number, and email address is how the City of Long Beach will communicate with you. This address can be different than the physical address of the proposed business premises. The mailing address and contact information can be changed at any time. • Proposed Business Location: The physical address where you plan to run your licensed medical marijuana business. You must have a proposed business location at the time of application and you may not change your proposed business location during the application process. • Community Relations Liaison: Each Medical Marijuana Business shall designate a Community Relations Liaison. The Liaison shall receive all complaints regarding the Medical Marijuana Dispensary, and make good faith attempts to promptly resolve all complaints. To address community complaints and concerns, the name and telephone number for the Liaison shall be made publicly available. Each Medical Marijuana Business Liaison is required to respond by phone or email within three(3) business days of contact by a City official concerning the Medical Marijuana Business. The name and contact information for Liaison of the medical marijuana business shall be conspicuously posted on the main entry doors to the business. • Seller's Permit: A person or entity engaged in business in California is required to obtain a Seller's Permit from the California State Board of Equalization. The requirement to obtain a seller's permit applies to individuals as well as corporations, partnerships, and limited liability companies. Both wholesalers and retailers must apply for a Seller's permit. • City of Long Beach Commercial/Industrial Business License: Each property owner of a proposed Medical Marijuana Business needs to obtain a commercial/industrial business license with the Business License Division in the City of Long Beach. The commercial/industrial business license allows the property owner to lease the property to a potential tenant. • Labor Peace Agreement: Labor peace agreement means an agreement between a licensee and a bona fide labor organization that, at a minimum, prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant's business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant's employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant's employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization. Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 2 Application Guidelines The following information is intended to provide general information and guidelines and should not be construed as legal advice or as a substitute for legal counsel. Medical Marijuana Business licenses are issued by dual licensing authorities. A Medical Marijuana Business is required to obtain both a local license and a state license, once made available. The state law, the Medicinal and Adult-Use Cannabis Regulations and Safety Act (MAUCRSA), and the local law, Long Beach Municipal Code Chapter 5.90, regulate medical marijuana business licensees, and it is the applicant's burden to understand and comply with those laws and regulations. Business license applications must be submitted to the City of Long Beach Business License Division and will be forwarded along to the approving departments. The application process takes several months from the filing and acceptance of a completed application, and will include inspections of the premise to be licensed. Once all departments have inspected the property and approved the application and all associated plans, the Department of Financial Management will issue a business license to the applicant. No medical marijuana operations are permitted at a facility until the local license is issued for such operation. All forms must be typed or legibly printed in blue or black ink. Applications must be accurate and complete in all aspects including applicable documentation as required. Incomplete applications will be rejected. If any portion of the operating plan for the business is referenced in the applicable sections of the application, you must include the specific section and/or page number of the operating plan. A checklist is provided with the application for your assistance. Applications for a Medical Marijuana Business License must be submitted with a non-refundable application fee. The application fee is based on the number of owners and business managers listed on the application. #of Owners and Business Managers Application Fees" 1 $200.45 2 $345.45 3 $490.45 4 $635.45 5 $780.45 6 $925.45 `subject to change without notice Checks should be made payable to the "City of Long Beach". Applicants for a new Medical Marijuana business license, transfer of an existing license or change of location of an existing Medical Marijuana business license may be subject to additional fees and/or licenses required prior to operation. Medical Marijuana Business Licenses will not be issued until a Certificate of Occupancy has been obtained for the premises and has passed City of Long Beach Fire Department inspections, as applicable. Businesses must apply for a medical marijuana business license before they will be considered for a Certificate of Occupancy. Only the person(s) identified within the application will be able to represent the applicant with any transaction or correspondence with the City during the application process. All correspondence originating from the City to the applicant will be sent by mail or email at the City's discretion. Any mail will be sent to the mailing address indicated on the application. Emails will only be sent to the applicant/business email listed. Applicants are responsible for maintaining the mailing and email addresses listed on their application and monitoring mail or email. Applicants must immediately notify the City of any changes to the listed mailing or email addresses. At the time of application, the applicant will be required to pay all application fees, including but not limited to the background investigation fee. If the same owners and/or business managers are applying for multiple marijuana business licenses within a 6 month time frame, the background investigation fee may be applied as credit toward the business license account at a later date. Live Scan receipts for each owner and business manager will be due at the time of application (see checklist on page 4). Live Scan forms and detailed instructions are available on the Medical Marijuana Website at www.longbeach.gov/medicaImari0uana. Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 3 Internal Use Medical Marijuana Business License Application Checklist Only 1. An interior floor plan of the proposed premises,on paper no larger than 11"x 17"(multiple sheets allowed), to include the dimensions of interior floor plan, the location of all exit doors, widths of doors and panic hardware, the principal uses of the floor area including where non-patients will be permitted, private consulting areas, storage areas, retail areas, areas for cash handling and storage, and restricted areas, and the separation of the areas that are open to persons who are not patients from those areas open to patients. ❑ ❑ 2. Photographs accurately depicting the entire interior and exterior of the proposed business site, including entrances, street frontages, parking, front, rear, and sides of the proposed site. ❑ 3. A map of any surrounding business and/or residence within approximately 300 feet. Distance does not have to be exact. Google and Bing maps are acceptable. Satellite view preferred. 4. Proof of Worker's Compensation Insurance. Documents may include quotations from an insurance agency, a "will serve" letter from an insurance agency, and/or formal certificates of insurance. See the FAQ's on the Medical Marijuana Website for more details(www.longbeach.gov/mariivana). 5. Proof of Liability Insurance. Documents may include quotations from an insurance agency, a"will serve" letter from an insurance agency, and/or formal certificates of insurance. See the FAA's on the Medical Marijuana Website for more details(www.longbeach.gov/marijuana). ❑ 6. Copy of CA Seller's Permit. NOTE: The Seller's Permit must be issued to the proposed business site. ❑ 7. Copy of Property Owner's City of Long Beach Commercial/Industrial Business License 8. Copy of Fictitious Business Name Filing, if applicable. ❑ 9. Corporation, Limited Liability Companies, Limited Liability Partnerships: a. Copy of your Articles of Incorporation/Organization; and b. Copy of your Statement of Information ❑ 10. Operating Plan to include the information as outlined in the operating plan instructions. 11. If the applicant is not the owner of the proposed business location, a notarized Property Owner Authorization Form found on page 13 of the application. The Property Owner Authorization and Notary must be original. Photocopies will not be accepted. ❑ 12. If the applicant is the owner of the proposed business location, a copy of the title or deed to the property. ❑ ❑ 13. Proof Entity is Registered and in Good Standing with Secretary of State and Franchise Tax Board(website screenshots will suffice). ❑ ❑ 14. Copy of one (1) fully legible valid government issued form of identification for each Medical Marijuana Business License applicant owner and business manager. Please note that acceptable forms of government issued identification include, but are not limited to: Driver's licenses or photo identity cards issued by the Department of Motor Vehicles that meet REAL ID benchmarks, a passport issued by the United States or by a foreign government, U.S. Military I.D. cards(active duty or retired military and their dependents), or a Permanent Resident Card. ❑ 15. Copy of Live Scan receipt/completion for each owner and business manager. If a Live Scan for a City of Long Beach marijuana business license application has been completed within the previous 6 months, include the Live Scan receipt from the previous application in place of of a new Live Scan receipt. Live Scan forms and detailed instructions are available on the Medical Marijuana Website at www.longbeach.gov/medicalmariivana. 16. Copy of Labor Peace Agreement(if available/applicable). PLEASE NOTE: *The City of Long Beach reserves the right to request additional information and documentation throughout the course of the application investigation and process. *Legal documents included as part of this application must be properly signed and executed. *Applications will be administratively closed if the application process has not been completed within 12 months. Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 4 CITY OF DEPARTMENT OF FINANCIAL MANAGEMENT LO- NGBEA' C H BUSINESS SERVICES BUREAU APPLICATION FOR MEDICAL MARIJUANA BUSINESS LICENSE (All forms must be typed or printed in blue or black ink) NEW LICENSE APPLICATION This application must be accompanied by an application fee (see page 3). Checks should be made payable to the "City of Long Beach". Note: You must submit a separate application for each medical marijuana business. Applicants are limited to the license categories per MAUCRSA regulations. Type of Business (Select One Only): ❑ Marijuana Dispensary (Application Period Closed) Laboratory Testing ❑ Marijuana Delivery (Application Period Closed) ❑ Cultivation Facility Distribution Facility (Currently Not Accepting) ❑ Manufacturing Facility APPLICANT INFORMATION APPLICANT NAME (CORPORATION/LLC/PARTNERSHIP/ASSOCIATION/SOLE PROPRIETOR): BUSINESS NAME (DBA): PLACE AND DATE OF FILING OF FICTICIOUS BUSINESS NAME (DBA): APPLICANT/BUSINESS PHONE:* APPLICANT/BUSINESS EMAIL:* BUSINESS SITE ADDRESS: MAILING ADDRESS:* COMMUNITY RELATIONS LIAISON NAME. COMMUNITY RELATIONS LIAISON EMAIL: COMMUNITY RELATIONS LIAISON PHONE: SELLER'S PERMIT NUMBER: *Note: Contact information provided in these fields will be used by the City to communicate with applicant. Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 5 OWNERSHIP STRUCTURE U For-Profit Corporation [_I Non-Profit Corporation ❑ Limited Liability Company (LLC) i General Partnership i I Limited Partnership (LLP) ❑ Sole Owner Please fill out the following section associated with the ownership structure selected above. CORPORATION OR LIMITED LIABILITY COMPANY(LLC): NAME OF CORPORATION/LIMITED LIABILITY COMPANY(LLC): CORPORATION/LLC NUMBER: DATE AND PLACE OF INCORPORATION/ORGANIZATION: LOCATION HEADQUARTERS: FEDERAL TAX ID NUMBER: NUMBER OF SHARES ISSUED BY CORPORATION: NUMBER OF SHARES RETAINED BY CORPORATION: NAME, ADDRESS, TELEPHONE NUMBER,AND EMAIL ADDRESS OF AGENT FOR SERVICE OF PROCESS DESIGNATED BY THE CORPORATION WITH THE CALIFORNIA SECRETARY OF STATE PLEASE NOTE: ATTACH CERTIFIED COPIES OF ARTICLES OF INCORPORATION/ORGANIZATION AND STATEMENT OF INFORMATION/ORGANIZATION,AND ALL AMENDMENTS THERETO THIS APPLICATION. GENERAL OR LIMITED PARTNERSHIP: NAME OF PARTNERSHIP: PLACE AND DATE OF FILING OF ARTICLES OR CERTIFICATE OF PARTNERSHIP OR LIMITED PARTNERSHIP: PLEASE NOTE: ATTACH CERTIFIED COPIES OF ARTICLES OF PARTNERSHIP OR LIMITED PARTNERSHIP,OR OTHER WRITTEN EVIDENCE OF PARTNERSHIP STATUS AND ALL AMENDMENTS THERETO THIS APPLICATION. SOLE OWNER: LAST NAME: FIRST NAME: HOME PHONE: CELL PHONE: EMAIL ADDRESS: DATE OF BIRTH: PLACE OF BIRTH: SOCIAL SECURITY NUMBER: DRIVER'S LICENSE NUMBER AND ISSUING STATE: Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 6 IF THE APPLICANT IS A CORPORATION, LIMITED LIABILITY COMPANY,OR PARTNERSHIP, LIST ALL OFFICERS, DIRECTORS, GENERAL PARTNERS,AND MANAGING MEMBERS, POSITION HELD, AND PERCENTAGE OWNED(IF APPLICABLE). NAME. TITLE RESIDENCE ADDRESS: PHONE: EMAIL: POSITION HELD: PERCENTAGE OWNED: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: NAME: TITLE: RESIDENCE ADDRESS: PHONE: EMAIL: POSITION HELD: PERCENTAGE OWNED: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: NAME: TITLE: RESIDENCE ADDRESS: PHONE: EMAIL: POSITION HELD: PERCENTAGE OWNED: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: NAME: TITLE: RESIDENCE ADDRESS: PHON : EMAIL: POSITION HELD: PERCENTAGE OWNED: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: *Attach additional pages if necessary Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 7 BUSINESS MANAGERS LIST ANY BUSINESS MANAGERS ASSOCIATED WITH THE MEDICAL MARIJUANA BUSINESS NAME: TITLE RESIDENCE ADDRESS: PHONE: EMAIL. POSITION HELD: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: NAME: TITLE: RESIDENCE ADDRESS: PHONE: EMAIL: POSITION HELD: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: NAME: TITLE RESIDENCE ADDRESS: PHONE: EMAIL: POSITION HELD: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: NAME: TITLE: RESIDENCE ADDRESS: PHONE: EMAIL: POSITION HELD: DATE OF BIRTH: PLACE OF BIRTH: DRIVER'S LICENSE NUMBER: ISSUING STATE: .Attach additional pages if necessary Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 8 PROPERTY INFORMATION BUSINESS SITE ADDRESS: TOTAL BUSINESS SQUARE FOOTAGE: TERMS OF LEGAL POSSESSION FOR WHICH APPLICATION IS MADE(check all that apply): ❑ OWN ❑ LEASE ❑ LETTER OF PROPERTY OWNER AUTHORIZATION IF LEASED, PROVIDE THE TERMS: START DATE: END DATE: IF OWNED, PROVIDE THE DATE OF PURCHASE: IF THE PROPERTY IS OWNED OR LEASED,ATTACH A COPY OF PROOF OF OWNERSHIP OR A COPY OF THE LEASE. ❑ Attached is an original fully executed Letter of Authorization for each owner, landlord, and leasing agent of the property listed on the application. The Letter of Authorization is required, even if the applicant owns or leases the property. NOTE: If the property is owned, rented,or leased by more than one person, a separate authorization form must be submitted for each owner, landlord, and leasing agent or equivalent. PROPERTY OWNER NAME: PROPERTY OWNER PHONE: PROPERTY OWNER EMAIL ADDRESS: PROPERTY OWNER'S CITY OF LONG BEACH COMMERCIAL/INDUSTRIAL BUSINESS LICENSE ACCOUNT NUMBER: DOES THE APPLICANT HAVE A PROPOSED SATELLITE CULTIVATION SITE IN LONG BEACH?(FOR DISPENSARIES AND/OR MANUFACTURERS ONLY) ❑ Yes ❑ No Describe the proposed use for each interior/exterior room/area at the proposed business site: (Attach additional pages to the application if necessary) Will edible marijuana products, defined in LBMC ection 5.90, be prepared at the proposed business site? ❑ Yes ❑ No If"Yes,"describe the type of products(Attach additional pages if necessary): Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 9 BUSINESS OPERATIONS ESTABLISHMENT HOURS OF OPERATION: Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Open Close Provide a description of the products and services to be provided by the medical marijuana business (Attach additional sheets if necessary, or reference the relevant page(s)of the Operating Plan): Provide a detailed description of the business plan to dispose of any medical marijuana or product that is not sold in a manner that protects it from being ingested by an animal or person (Attach additional sheets if necessary, or reference the relevant page(s)of the Operating Plan): Provide a detailed description of the ventilation systems used in the marijuana business including but not limited to how the ventilation systems prevent odor from leaving the building and how to mitigate noxious fumes or gases during the production process (Attach additional sheets if necessary, or reference the relevant page(s)of the Operating Plan): Provide a detailed description of the Point of Sale(POS)software the business will be using to track inventory and/or sales of marijuana (Attach additional sheets if necessary, or reference the relevant page(s)of the Operating Plan): Please provide a detailed description of all toxic, flammable, or other materials regulated by government agencies including the type of materials, location of materials, and how the materials will be stored. Please also describe how any chemicals or hazardous materials will be used in your business process(Attach additional sheets if necessary, or reference the relevant page(s)of the Operating Plan): Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 10 What is the projected daily average and peak electric load anticipated to be used by the business and what are the necessary upgrades(if any)to be performed in order to fulfill the needs of the electric load?(Attach additional sheets if necessary, or reference the relevant page(s)of the Operating Plan): SECURITY INFORMATION Will security guards be provided? ❑ Yes ❑ No If"Yes," how many security guards? Is any other type of security provided? ❑ Yes ❑ No If"Yes,"describe the type of security: Days and hours security guards will be provided(fill out completely): Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Start Time End Time Provide the name, address,telephone number, business license account number, and PPO number of the security company that will be used. NOTE:A copy of the security guards' CA state license must be maintained on file at the business at all times. The company must have a valid business license in the City of Long Beach. Provide the name, address, and telephone number of the alarm monitoring company that will be used. NOTE: The company must have a valid business license in the City of Long Beach. Provide a list of all members with access to the surveillance camera system to be used(Attach additional pages if necessary, or reference the relevant page(s)of the Operating Plan): Provide a detailed description of the security plan for the proposed business (Attach additional pages if necessary, or reference the relevant page(s)of the�Operating Plan): Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application- Page 11 BACKGROUND INFORMATION State whether you are licensed by any governmental agency to engage in any business. If so, list each such license held,the city in which it is held, and expiration date thereof: Has the Medical Marijuana Business License applicant previously operated in this City or any other county, city, or state under a similar license or permit? ❑ YES ❑ NO If"Yes,"attach an explanation including the license/permit issuing city, county, state, and the license and/or permit identification number(s). Has the Medical Marijuana Business License applicant had any of the previously issued licenses or permits mentioned above revoked or suspended? ❑ YES ❑ NO If"Yes,"attach an explanation for the revocation/suspension. Has any owner, business manager, member, or employee ever been denied a medical marijuana business license in the City of Long Beach or had a licensed suspended or revoked? If"Yes,"what was the license account number? If"Yes,"what was the date the license was suspended/revoked? Has any owner or business manager ever been convicted of a felony? ❑ YES ❑ NO For each Management Employee convicted of a crime or currently on probation or parole as set forth above, attach with this application the first and last name of the Management Employee,the associated criminal case number(s),the statute(s)violated, the date(s)of conviction, the date(s)of imposition of probation and/or parole, and the name and address of the sentencing court. Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application- Page 12 rrI CITY OF LONG BEACH DEPARTMENT OF FINANCIAL MANAGEMENT BUSINESS RELATIONS BUREAU RA BUSINESS LICENSE SECTION 333 W.Ocean Boulevard,4th Floor • Long Beach,CA 90802 • (562)570-6211 FAX(562)499-1097 Email:LBBIZ@LongBeach.Gov PROPERTY OWNER/ LANDLORD AUTHORIZATION FOR INSPECTION AND RIGHT TO OPERATE A MEDICAL MARIJUANA BUSINESS I, am the legal owner/landlord/lessor of real property located at (Name of Property Owner/Landlord) (Circle One) Long Beach, California. I authorize the Medical (Proposed Business Site) Marijuana Business entitled to operate a medical Applicant(Corporation/LLC/Partnership/Sole Owner) marijuana business at the property, as that term is defined in state law and the Long Beach Municipal Code, for the specific use(s) of (Land uses(s)set forth in the Medical Marijuana Business application-e.g.cultivation,manufacturing,etc.) set forth in the Medical Marijuana Business License Application submitted to the City of Long Beach by and allow the City of Long Beach to enter the property for Applicant(Corporation/LLC/Partnership/Sole Owner) inspection of the property. I further understand that as the legal owner/landlord /lessor of the property, I am responsible for any violation and nuisance activity which may occur at this property. I declare under penalty of perjury that the foregoing information is true and correct. Executed this day of 2017, at Long Beach, California. (Signature of legal owner/landlord/lessor) (Printed Name&Title) (Date) (Signature of legal owner/landlord/lessor) (Printed Name&Title) (Date) (Signature of legal owner/landlord/lessor) (Printed Name&Title) (Date) *This authorization form will not be valid without notarization.The authorization form automatically expires upon sale or transfer of the property to a new legal owner. If sale or transfer of the property occurs prior to obtaining a business license, the applicant must resubmit this notarized form with approval of the new legal owner/landlord/lessor of the property. Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application - Page 13 LBMC CHAPTER 5.90 VERIFICATION OF MEDICAL MARIJUANA PROHIBITED ACTIVITY The undersigned owners and managers, on behalf of the herein Medical Marijuana Business Permit applicant, , declare under penalty of perjury that they Applicant(Co rpo ratio n/LLC/Partnership/Sole Owner) have read and understand the attached provisions of Long Beach Municipal Code(LBMC)Section 5.90, and shall, collectively and individually ensure that neither the Medical Marijuana Business nor its employees and Management Employees shall engage in the following prohibited activity set forth in LBMC 5.90,which states in relevant part that: (A) It shall be unlawful for any person or entity to operate, in or upon any property, a Medical Marijuana Business without first obtaining all required State licenses and a business license or permits issued by the City; (B) It shall be unlawful for the owner of a building to allow the use of any portion of a building by a Medical Marijuana Business unless the tenant has a valid business license permit, or has applied for and not been denied, a business license permit; (C) No pesticides or insecticides prohibited by federal, state, or local law for fertilization or production of edible produce may be used on any marijuana cultivated, produced, or distributed by a Medical Marijuana Business; (D) No Medical Marijuana Business may have a drive through lane or drive up window and no Medical Marijuana may be dispensed from a drive through lane or drive up window; (E) All cultivation, production,distribution, possession, storage,display, sales or other distribution of marijuana shall occur only within an enclosed area of a medical marijuana business and shall not be visible from the exterior of the business; (F) Consultations by medical professionals shall not be permitted at a Medical Marijuana Business nor as a permitted accessory use at a medical marijuana business; (G) It shall be unlawful for any of the following persons to have an ownership interest or a managerial responsibility in a Medical Marijuana Business, and no license or permit may be issued to or held by, and no Medical Marijuana Business shall be managed by: (a)Any person until all required fees have been paid; or(b)Any person who has been convicted within the previous ten(10)years of any violent or serious felony as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit, or embezzlement or who is currently on parole or probation for the sale or distribution of a controlled substance; or(c)Any person who is under twenty-one(21)years of age; or(d)Any person who operates or manages a Medical Marijuana Business contrary to the provisions of this Chapter, or conditions imposed on land use or license approvals, or contrary to the terms of the plans submitted with the permit application, or amended as permitted by this Chapter; or(e)A licensed physician making patient recommendations; or(f)A person licensed and permitted to operate pursuant to this Chapter who,while lawfully operating, or who, at the time of application, has failed to remedy an outstanding delinquency for City taxes or fees owed, or prosecuting officer, or an officer or employee of the State or City of Long Beach; or (h)Applicants or entities(including Management Employees)that have a previous record of violating federal or state laws relating to workplace safety,wages and compensation, employee discrimination, or union activity. (H) It shall be unlawful to operate a Medical Marijuana Business or to grow medical marijuana outside of an enclosed building; (I) It shall be unlawful for any person to transport medical marijuana,except as specifically allowed by this Chapter and State law; (J) It shall be unlawful for any Property owner, landlord, and lessee, Medical Marijuana Business employee or Manger or any other person having any responsibility over the operation of the Medical Marijuana Business to refuse to allow, impede, obstruct,or interfere with an inspection; (K) It shall be unlawful for any person to cause, permit or engage in the cultivation, possession, distribution, exchange or giving away of marijuana for medical or non-medical purposes except as provided in this Chapter; (L) It shall be unlawful for any person to cause, permit, or engage in any activity related to Medical Marijuana except as provided in this Chapter and pursuant to all other applicable local and state law; (M) It shall be unlawful for any person to knowingly make any false, misleading or inaccurate statement or representation in any form, record, filing or documentation required to be maintained,filed, or provided to the City of Long Beach under this Chapter; (N) No Medical Marijuana Dispensary shall be open to or provide Medical Marijuana to qualified patients or employees between the hours of eight(8)pm and nine(9)am; (0) No person under the age of eighteen(18)shall be allowed on the Property, unless that minor is a qualified patient and is accompanied by his or her licensed attending physician, parent(s)or documented legal guardian; (P) No Medical Marijuana Dispensary, Management Employee or employee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on the Property or in the parking area of the Property; (Q) No dried Medical Marijuana shall be stored at the property in structures that are not completely enclosed, in an unlocked vault or safe, in any other unsecured storage structure, or in a safe or vault that is not bolted to the floor of the property; (R) Medical Marijuana may not be inhaled, smoked, eaten, ingested, or otherwise consumed on the Property, or in the parking areas of the Property or in those areas restricted under the provisions of Health and Safety Code§11362.79. (Signature of Owner/Management Employee) (Printed Name&Title) (Date) (Signature of Owner/Management Employee) (Printed Name&Title) (Date) (Signature of Owner/Management Employee) (Printed Name&Title) (Date) Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business License Application- Page 14 CERTIFICATION OF LABOR PEACE AGREEMENT I, certify that the medical marijuana business, if employing two or Applicant(Corporation/LLC/Partnership/Sole Owner) more employees (as defined in the California Business and Professions Code Sections 19322(a)(6)(B) and 19322(a)(6)(C)), at the proposed property will enter into, or has entered into, a labor peace agreement and the medical marijuana business will abide by the terms of the labor peace agreement. If the City becomes aware that a labor peace agreement has been violated, I must provide a copy to the City upon request. (Signature of Owner/Management Employee) (Printed Name&Title) (Date) (Signature of Owner/Management Employee) (Printed Name&Title) (Date) (Signature of Owner/Management Employee) (Printed Name&Title) (Date) OATH OF APPLICATION The undersigned owners and managers of the applicant, declare under Applicant(Corporation/LLC/Partnership/Sole Owner) penalty of perjury that this application and all attachments are true, correct, and complete to the best of my knowledge. I have read, understand, and will ensure compliance with the provisions of Long Beach Municipal Code (LBMC) Chapter 5.90. 1 also acknowledge that it is my responsibility and the responsibility of my agents and employees to comply with the provisions of the Long Beach Municipal Code and all laws, rules, and regulations which govern my medical marijuana business license application and business operation. (Signature of Owner/Management Employee) (Printed Name&Title) (Date) (Signature of Owner/Management Employee) (Printed Name&Title) (Date) (Signature of Owner/Management Employee) (Printed Name&Title) (Date) Note: This is NOT a Medical Marijuana Business Permit. Do not operate until a valid permit is issued. Medical Marijuana Business Application—Page 16 1 Ceja, Eric From: Harvey Englander[harvey@englander.la] Sent: Wednesday, April 12, 2017 6:07 PM To: Harnik, Jan Cc: Ceja, Eric Subject: [SPAM] - Proposed Medical Marijuana Ordinance Attachments: Lancaster Point Ranking System.pdf Mayor Harnik& Eric, It was a pleasure meeting you at the Ad Hoc Committee meeting. As I briefly mentioned, I organized the United Cannabis Business Alliance where I represent about 50 cultivators and dispensaries who are licensed to operate in the City of Los Angeles. I have been a consultant to other dispensaries working in Cities throughout Los Angeles, Orange and Ventura Counties on developing ordinances allowing the cultivation and/or sale of medical marijuana. I am also an investor in some medical marijuana business enterprises. I lived in Palm Desert and both of my sons are graduates of Palm Desert Middle School and Palm Desert High School (Adam &Joshua Englander). My former wife, Dr. Sandy Gilbert, retired from Desert Sands Unified School District where she was a special education teacher, a program specialist and a principal. I currently maintain homes in La Quinta and Beverly Hills. I do not represent anyone seeking a license to operate in Palm Desert nor am I an investor in any operations. After listening to the comments at the meeting and reviewing the draft ordinance I am concerned about some of the elements being considered for the Palm Desert Medical Marijuana Ordinance. To begin, the "first come-first served" plan for issuing licenses just doesn't make sense and has not been employed in any City that I am aware of. I also don't believe that you should treat this industry as if it were a liquor store or a massage parlor where a CUP and a business license are the only requirements for entry. There are legal uncertainties, particularly on the Federal level about these operations. They are a cash business that are often highly targeted by criminals. They are adult-only and there are specific distance requirements between establishments and away from residential, educational and religious property. Other cities throughout the State have established requirements to apply for a license and then have used different systems to decide who will get the license to operate. They have also limited the number of operations, at least for the first year or two, to determine if the citizen's needs are being met. I understand that there is a strong free enterprise philosophy in Palm Desert whereby the good operations will stay in business and the bad ones would fail, but does the City want to have a glut of empty storefronts when the failures occur? I believe that Cathedral City has a glut of dispensaries and the failure rate is growing. I understand from the meeting that the City does not want to determine who would get a license, but the alternative is to give licenses out to anyone who asks, whether they have the experience, the financial foundation and the understanding of a business that requires a close working relationship with local government. Having a free for all situation will mean that hundreds of organizations will apply for a license because it will be a commodity to be brokered within the industry. It will not provide any benefit to the City for this to occur. I also believe that until Palm Desert voters vote on a local taxation formula that a tax cannot be levied. The operators who I know in similar situations have agreed through a development agreement to self-tax and therefore provide revenue to the City.There will be increased law enforcement and other needs for these dispensary and cultivation operations and the City should be reimbursed for those costs. i 1 To my knowledge, the City of Lancaster in Los Angeles County is the most recent City to pass a law allowing medical marijuana operations in their City. The Council voted to use a 3-phase review process. The first phase is a preliminary review for completeness and minimum qualifications (passed the Background Investigation, paid all submittal fees, etc.). The second phase is the thorough review and point ranking. The third phase is the overall application ranking. Lancaster's Point Ranking System is as follows below. My personal comments about the system are in red. I have also attached the Lancaster document from for your review. 1. Community Benefits a. Financial Benefit (20 pts) b. Community Involvement/Support (5pts) c. Green/Environmental Programs (5pts) d. Local Hire/Preference (5pts) 2. Business Plan a. Financial Wherewithal (15 pts) b. Experience/Background (10 pts) I would award 15 pts but included in this evaluation I would examine the team the applicant has assembled- security team, cultivators, manufacturers, legal, etc. c. Number of Jobs and Level of Pay (5 pts) 3. Enhanced Safety/Security (15 pts) [Examples include capability to remain secure during power outage, alarm system, security panel separate from access control system, wireless cell technology for transmission to 24 hour monitoring in addition to at least one phone line for redundancy] 1. Enhanced Product Safety/Quality Control (10 pts) 2. Time to Operation/Anticipated Operations Date (10 pts) I would recommend only awarding 5 pts for this. Although it's in the best interest of a city to get the licensed facility up and running asap, a city should not award this many points to an applicant because they claim they can open soon. It may encourage sloppy work or cutting corners. I would be happy to meet in person or via telephone to discuss best practices and other issues to make the Palm Desert Ordinance fair and workable for the City, the residents and the dispensary and cultivation operators. Thank You. Harvey Englander T. 213.220.5058 E: Harvey@englander.la 2 I 9ANFC,I0(r SYSTFPI, f multi-section medical cannabis facility, as well as to each of the tenant's employees. 4.5 Licensee Liable for Tenants; Incorporation of Ordinance in Tenant Agreements f As tenants of a multi-section medical cannabis cultivation facility operate under the Licensee's Local License and conditional use permit, the Licensee is liable and responsible for y the conduct of and annual surcharge amount attributable to tenants. The Licensee of a multi- section medical cannabis cultivation facility shall enter into a written rental agreement, lease or other agreement with each tenant that incorporates and includes a copy of the Ordinance as an } exhibit and expressly requires the tenant to'comply with the Ordinance, including, without t limitation, the tenant's obligation to do the following: (a) pay to the Licensee the annual surcharge amount attributable to tenant's activities; (b) comply with the employee permit requirements; (c) defend and indemnify the City`,as set forth in Section 17.43.13 of the Municipal Code; and (d) comply with the inspection requirements set forth in Section 5.56.140 and 17,43.I40 of the Municipal Code. 4.6 Applicability of State Law and Regulations In the event any regulation promulgated by the State of Ca i�ornia, including any of its agencies,prohibits a multi-section medical cannabis cultivation facility, such facility in the City will noJ_he"grandfalheie_d"or deemed approved. i 5. .EVALUATION PROCESS y ------._.._ The City evaluates applications for a local license and/or conditional use permit in three i phases, The first phase consists of City staff conducting a preliminary review of the application { to verify that the application is complete and the applicant satisfies the minimum requirements to qualify for a local license and/or conditional use permit. The second phase consists of a c qualitative evaluation of the application utilizing a point system. The third phase consists of prioritizing applications based on the number of points received. Notices pursuant to this section 5 shall be by email and shall be deemed given when transmitted. 5.� First Phase — rcliminary Review for Completeness and Minimum 3 ttxlifrca ons 'z Upon an applicant submitting an application and required fee, City staff will conduct a preliminary review to verify (a) the application is complete, (b) the applicant satisfies the minimum qualifications for a local license and/or conditional use permit, as applicable, and (c) that"good cause"(as defined in Chapters 5.56 and 17.43 of the Municipal Code)for denial does not appear on the face of the application. Review of an application during the first phase shall be limited to defects, facts and information that appear on the face of application documents or that are objectively determined and/or verifiable. An application for which the California Department of Justice and/or Federal Bureau of Investigation criminal history record has not E been received, but which is otherwise complete and eligible to advance to the second phase,may be conditionally advanced; provided, however, that such application may later be summarily or otherwise denied if the criminal history records (once received from the California Department 1 10 Administrative Policies&Procedures March 2017 ; 3 1 t f f 't of Justice and/or Federal Bureau of Investigation)reveal a disqualifying criminal conviction. i An application rejected at this first review phase shall be summarily denied and the applicant shall be notified of the summary denial and right to appeal in the same manner as set forth in Sections 2.4 or 3.4 of these Policies and Procedures, as applicable. An application that s passes this first phase shall dance to the second phase. i 5.2 Second Phase• Thorough Review and Point Ranking An application that advances from the first phase shall be reviewed by a committee appointed by the City Manager. The review committee shall conduct a qualitative analysis of ? the application and shall award up to a maximum of 100 points to the application based on the following: 1. Community Benefits a. Financial Benefit(20 point maximum) b. Community Involvement/Support(5 point maximum) F C. Green/Environmental Programs(5 point maximum) d. Local Hire/Preference(5 point maximum.) 2. Business Plan s. a. Financial Wherewithal(15 point maximum) b. Experience/Background(10 point maximum) t C. Number of Jobs and Level of Pay(5 point maximum) 3. Enhanced Safety/Security(15 point maximum) y s (Examples: (i) capability to remain secure during a power outage; (ii) alarm system security panel separate from the access control system; and (iii) UL ` 3GAG wireless cell technology for transmission to 24 hour monitoring in addition to at least one phone line for redundancy] s 4. Enhanced Product Safety/Quality Control(10 point maximum) l 5. Time to Operation/Anticipated Operations Date(10 point maximum) v�m..c1c( � cc l The review committee shall document the points/scoring awarded to the application and ` such documentation shall become part of the application file. In conducting the second phase review, the review committee shall not consider any factor other than those specifically ; enumerated above.' Applications must receive a minimum of 70 points to advance to the third phase;applications thanes 've fewer than 70 points shall be disqualified. " 4 5.3 Third Phase Application Ranking F I Applications that complete the second phase shall then be ranked based on the number of points awarded_ The number of applicants equal to the then-available number of local licenses ("Available Licenses") shall be notified by the City by email and written notice via first class mail that the applicant's application is eligible to receive one of the Available Licenses and that 11 t Adrninrsiralive Policies&Procedures March 2017 3 the security deposit and the applicable first-year annual site regulation fee must be paid within 5 F days of the date of the notice. Service of notice shall be deemed complete upon transmission of t the email. An applicant who fails to timely pay the security deposit first-year annual site regulation fee will have its application moved to the last position on the ranking list and all other applications will move up one position. Once an applicant who receives a notice of eligibility for one of the Available Licenses pays the required security deposit and first-year annual site regulation fee, its application is then qualified for dual-track processing (i.e., concurrent g processing of the local license and conditional use permit applications). All other Phase 2 applicants will be notified of their application's position/ranking by email and written notice via first class mail. Service shall be deemed complete upon transmission of the email. If and when all Available Licenses have been issued (and provided that the City Council does not increase the maximum number of Available Licenses), all other Phase 2 applicants shall be refunded their previously paid conditional use permit fee. In the l event a local license later becomes available, the next highest ranked applicant then on the ranking list shall be notified, as set forth hereinabove,to resubmit its conditional use permit fee (if previously refunded) and update all application information within 10 days of the notice. F Applicants shall at all times keep the City informed of the applicant's current mailing address, . telephone number and email address. Failure of an applicant to receive a properly addressed notice shall not invalidate any subsequent City action, decision or proceeding. G s `a e 9 a f s F a G F 3 F g}t 5 G y { 5 E i p4f i S 3 3 3 12 7 Xdmintstrative Policies&Procedures March 2017 1 Up Previous Next Mait: collapesa,; Search Print No Frames Title 8 HEALTH AND SAFETY Chapter 8.34 TOBACCO RETAILER LICENSE 8.34.010 Definitions. The following words and phrases, whenever used in this chapter, shall have the meaning defined in this section unless the context clearly requires otherwise: "Department" means the business licensing department of the department of finance of the city. "Person" means any natural person partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee or any other legal entity. "Proprietor" means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have, or can or does share, ultimate control over the day-to-day operations of a business. "Tobacco product" means any substance containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco. "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking or ingestion of tobacco products. "Tobacco retailer" means any person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco, tobacco products, or tobacco paraphernalia. "Tobacco retailing" shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. (Ord. 1055 § 1, 2003; Ord. 1049 § 3, 2003) 8.34.020 Requirement. A. It is unlawful for any person to act as a tobacco retailer without first obtaining and maintaining a valid tobacco retailer's license pursuant to this chapter for each location at which that activity is to occur. No license may issue to authorize tobacco retailing at other than a fixed location. For example, tobacco retailing by persons on foot and tobacco retailing from vehicles are prohibited. B. The payment of the license fee designated in Section 8.34.060 confers paid status upon a license for a term of one year. Each tobacco retailer shall apply for the renewal of his or her tobacco retailer's license no later than thirty days prior to expiration of the payment term. C. Nothing in this chapter shall be construed to grant any person obtaining and maintaining a tobacco retailer's license any status or right other than the right to act as a tobacco retailer at the location in the city identified on the face of the permit. For example, nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on smoking in enclosed places of employment made applicable to business establishments by California Labor Code Section 6404.5. (Ord. 1049 § 3, 2003) 8.34.030 Application procedure. Application for a tobacco retailer's license shall be submitted in the name of each proprietor proposing to conduct retail tobacco sales and shall be signed by each proprietor or an authorized agent thereof. It is the responsibility of each proprietor to be informed of the laws affecting the issuance of a tobacco retailer's license. A license that is issued in error or on the basis of false or misleading information supplied by a proprietor may be revoked pursuant to Section 8.34.090 of this chapter. All applications shall be submitted on a form supplied by the department and shall contain the following information: A. The name, address, and telephone number of each proprietor; B. The business name, address, and telephone number of the single fixed location for which a tobacco retailer's license is sought; C. The name and mailing address authorized by each proprietor to receive all license-related communications and notices (the "authorized address"). If an authorized address is not supplied, each proprietor shall be understood to consent to the provision of notice at the business address specified in subsection(B) of this section; D. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation; and E. Such other information as the department deems necessary for the administration or enforcement of this chapter. (Ord. 1049 § 3, 2003) 8.34.040 Issuance of license. Upon the receipt of an application for a tobacco retailer's license and the license fee, the department shall issue a license unless substantial record evidence demonstrates one of the following bases for denial: A. The application is incomplete or inaccurate; or B. The application seeks authorization for tobacco retailing by a proprietor for which or whom a suspension is in effect pursuant to Section 8.34.080 of this chapter; or by a proprietor which or who has had a license revoked pursuant to Section 8.34.090 of this chapter; or C. The application seeks authorization for tobacco retailing that is prohibited pursuant to Section 8.34.020 of this chapter(e.g., mobile vending), that is unlawful pursuant to this Palm Desert code (e.g., the zoning code), or that is unlawful pursuant to any other local, state or federal law. (Ord. 1049 § 3, 2003) 8.34.050 Display of license. Each license shall be prominently displayed in a publicly visible location at the licensed premises. (Ord. 1049 § 3, 2003) 8.34.060 Fees for license. The fee to issue or to renew a tobacco retailer's license shall be established by resolution of the city council of Palm Desert, California. The fee shall be calculated so as to recover no more than the total cost of license administration and enforcement, including, for example, but not limited to, issuing the license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators. Fees are nonrefundable except as may be required by law. (Ord. 1049 § 3, 2003) 8.34.070 Licenses nontransferable. A tobacco retailer's license is nontransferable. If the information required in the license application pursuant to Section 8.34.030, subsections (A) through(C), changes a new tobacco retailer's license is required before the business may continue to act as a tobacco retailer. For example, if a proprietor to whom a license has been issued changes business location, that proprietor must apply for a new license prior to acting as a tobacco retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a tobacco retailer. (Ord. 1049 § 3, 2003) 8.34.080 License violation. A. Violation of Tobacco-Related Laws. It is a violation of a tobacco retailer's license for a licensee or his or her agent or employee to violate any local, state, or federal tobacco-related law. B. License Compliance Monitoring. Compliance with this chapter shall be monitored by the code compliance department. The city council anticipates that compliance checks of a sample of tobacco retailers selected or based on complaints will be conducted at least one time during each twelve-month period. (Ord. 1049 § 3, 2003) 8.34.090 Suspension or revocation of license. A. Suspension or Revocation of License for Violation. In addition to any other penalty authorized by law, a tobacco retailer's license shall be suspended or revoked if the department fmds, after notice to the licensee and opportunity to be heard, that the licensee or his or her agents or employees has or have violated the requirements of this chapter or other conditions of the license imposed pursuant to Section 8.34.080. 1. Upon a finding by the department of a first license violation within any sixty-month period, the license shall be suspended for thirty days. 2. Upon a finding by the department of a second license violation within any sixty-month period, the license shall be suspended for ninety days. 3. Upon a finding by the department of a third license violation within any sixty-month period, the license shall be suspended for one year. 4. Upon a finding by the department of a fourth license violation within any sixty-month period, the license shall be revoked and the proprietor or proprietors who had been issued the license shall never again be issued a tobacco retailer's license pursuant to this chapter. B. Suspension of License for Failure to Pay Renewal Fee. A tobacco retailer's license that is not timely renewed pursuant to Section 8.34.020(B) shall automatically be suspended by operation of law. If not renewed, a license shall be automatically revoked two years after the renewal date. C. Revocation of License Issued in Error. A tobacco retailer's license shall be revoked if the department finds, after notice and opportunity to be heard, that one or more of the bases for denial of a license under Section 8.34.040 existed at the time application was made or at any time before the license issued. The revocation shall be without prejudice to the filing of a new application for a license. D. Appeal of Suspension or Revocation. A decision of the department to revoke or suspend a license is appealable to the city council and must be filed with the city clerk within ten days of mailing of the department's decision. An appeal shall stay all proceedings in furtherance of the appealed action. A suspension or revocation pursuant to subsection B is not subject to appeal. (Ord. 1049 § 3, 2003) 8.34.100 Administrative fine. A. Grounds for Fine. If the department finds, based on substantial evidence, that any unlicensed person, including a person named on a revoked or suspended license, has engaged in tobacco retailing in violation of Section 8.34.020 of this chapter, the department shall fine that person as follows: 1. A fine not exceeding one hundred dollars for a first violation in any twelve-month period; 2. A fine not exceeding two hundred dollars for a second violation in any twelve-month period; or 3. A fine not exceeding five hundred dollars for a third or subsequent violation in any twelve-month period. Each day that such a person engages in tobacco retailing shall constitute a separate violation. B. Notice of Violation. A notice of violation and of intent to impose a fine shall be personally served on, or sent by certified mail to, the person or persons subject to the fine. The notice shall state the basis of the department's determinations and include an advisement of the right to request a hearing to contest the fine. Any request for a hearing must be in writing and must be received by the department within ten calendar days of personal service of the notice on the person or persons subject to a fine or within fifteen calendar days if the person or persons subject to a fine are served by mail. C. Imposition of Fine. If no request for a hearing is timely received, the department's determination on the violation and the imposition of a fine shall be final and payment shall be made within thirty calendar days of written demand made in the manner specified above for a notice of violation. If the fine is not paid within that time, the fine may be collected, along with interest at the legal rate, in any manner provided by law. In the event that a judicial action is necessary to compel payment of the fine and accumulated interest, the person or persons subject to the fine shall also be liable for the costs of the suit and attorney's fees incurred by the city in collecting the fine. D. Notice of Hearing. If a hearing is requested pursuant to subsection B of this section, the department shall provide written notice, within forty-five calendar days of its receipt of the hearing request, to the person or persons subject to a fine of the date, time, and place of the hearing in the manner specified above for a notice of violation. E. Hearing Decision. The hearing officer shall render a written decision and findings within twenty working days of the hearing. Copies of the decision and findings shall be provided to the person or persons subject to a fine in the manner specified above for a notice of violation. F. Finality of the Hearing Officer's Decision. The decision of the hearing officer shall be the final decision of the city. G. Appeal to Superior Court of Limited Jurisdiction. Notwithstanding the provisions of Section 1094.5 or 1094.6 of the Code of Civil Procedure, within twenty days after personal service of the hearing officer's decision and findings, or within twenty-five days if served by mail, any person subject to a fine may seek review of the hearing officer's decision and findings by the superior court of limited jurisdiction. A copy of the notice of appeal to the superior court shall be timely served in person or by first-class mail upon the department by the contestant. The appeal shall be heard de novo, except that the contents of the department's file in the case shall be received in evidence. A copy of the records of the department of the notices of the violation and of the hearing officer's decision and findings shall be admitted into evidence as prima facie evidence of the facts stated therein. H. Failure to Pay Fine. If no timely notice of appeal to the superior court is filed, or the department is not timely served with a copy of a notice of appeal, the hearing officer's decision and findings shall be deemed confirmed and the fine shall be collected pursuant to subsection C of this section. (Ord. 1049 § 3, 2003) 8.34.110 Enforcement. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. A. Causing, permitting, aiding, abetting or concealing a violation of any provision of this ordinance shall constitute a violation. B. In addition to the administrative enforcement procedures provided by Section 8.34.090 of this chapter violations of this chapter may, in the discretion of the prosecutor, be prosecuted as infractions. C. Violations of this chapter are declared to be public nuisances. D. Violations of this chapter are hereby declared to be unfair business practices and are presumed to at least nominally damage each and every resident of the community in which the business operates. E. In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the city attorney, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings and suits for injunctive relief. F. Any person acting for the interests of itself, its members or the general public may bring an action for injunctive relief to prevent future such violations or to recover such actual damages as he or she may prove. (Ord. 1049 § 3, 2003) View the mobile version. home DEPARTMENT PREFIX MAX 4 TYPES MAX 60 SUBTYPES FOR EACH TYPE MAX 60 Application Online BLIC BUSINESS IN CITY STANDARD INCLUDING TOBACCO LICENSE BLC CONTRACTORS BUSINESS LICENSE BUSINESS OUT OF CITY BLEP ELPASEO CATEGORY CATEGORY II CATEGORY III CATEGORY IV BLSP SPECIALTY LICENSE HOME BASED BUSINESS PERMIT-INITIAL MASSAGE ESTABLISHMENT-NOT CERTIFIED-CAMTC-INITIAL RESIDENTIAL-COMMERTIAL SOLICITATION SHORTTERM RENTAL HOMEOWNER AND SHORT TERM RENTAL MANAGEMENT PROPERTY FOOD VENDING VEHICLE PERMIT-INITIAL FEE PUSHCARTS PERMIT-INITIAL VENDING MACHINES BINGO LICENSE PSYCHIC ACTIVITY PERMIT-INITIAL GOLF CART PERMIT BLF FILM-VIDEO PRODUCTION BLIP STILL PHOTOGRAPY BUSINESS LICENSE PI PROFESSIONAL-IN CITY ACCOUNTING SERVICES G39E54G2G2:G37 #REF' ADVERTISING AGENCIES AGENTS AND BROKERS ARCHITECT ART STUDIO ARTIST BOOKKEEPING SERVICES 34 BUSINESS OFFICE 21 COLLECTION AGENCY 19 COMPUTER PROGRAMING SRVCS 10 CONSULTANT 11 COUNTRY CLUB MEMBERSHIP 7 COURT REPORTING SERVICE 21 DETECTIVE AND PROTECTIVE SERVICES 16 DRAFTING SERVICE 18 DUST CONTROL 26 EMPLOYMENT AGENCY 11 ENERGY RETAILER 23 ENGENEERING SERVICES 24 ENTERTAINMENT PRODUCTIONS 34 ESCROW SERVICES 17 EVENT CORDINATOR 13 FORENSIC 18 GOLF CLUB-MEMBERSHIP 16 GRAPHIC ART&DESIGN 21 INSURANCE AGENCY-REGISTRAION ONLY 26 INSURANCE AG ENT/BROKER 16 INTERIOR DECORATING SERVICES 16 LANDSCAPE DESIGN 9 LEGALSERVICES 22 MAIL ORDER 21 MARKETING 36 PHOTOGRAPHER 22 MEETING umi r ❑ CC NTINUEI)TO 11�J PISSED TO 2ND READING CITY OF PALM DESERT CITY ATTORNEY OFFICE STAFF REPORT REQUEST: To approve on first reading Ordinance No. 1049of the City of Palm Desert, California providing for the Licensing of Tobacco Retailers SUBMITTED BY: David J. Erwin, City Attorney DATE: May 15, 2003 CONTENTS: I. Ordinance No. 1049 2. Palm Desert Study. i 3. Technical Assistance Legal Center Brochure 4. Communications -Boys& Girls Club of Coachella Valley and Community Health Agency Recommendation 1049 By Motion, 1) To approve Ordinance No._of the City of Palm Desert, California Providing for the Licensing of Tobacco Retailers. Background We received and include herein, Technical Assistance from the Legal Center of the Public Health Institute which limit tobacco in the Community. The material has been included specifically with licensing of tobacco retailers. The study has been in connection with the City of Palm Desert relating to youth accessibility in Palm Desert and is attached. We have the ability to provide for licensing of tobacco retailers which will cause some additional deterrent for minor's use of tobacco in the City, We have received and enclose communications from the Boys and Girls Club of Coachella Valley and the Community Health Agency of Riverside County, both of which deal with this subject on a regular basis. The City Clerk has received petitions executed by a large number of individuals suggesting or recommending that licensing should occur. This type of licensing is provided within the City of Rancho Mirage. Staff will be prepared to answer any questions should the Council have same regarding this Ordinance. RMPUBU)IF.%216692 Illegal Sale of Cigarettes to Children Increases in California American Lung Association of. Page'1 of 2 September 3, 2002 Contact: Andy Weisser 818/703-6444,American Lung Association of California Terry Mock 415/228-8418,American Heart Association Ann Goure'916/202-4425,American Cancer Society FOR IMMEDIATE RELEASE t- Illegal Sate of Cigarettes to Children Increases in California i Health groups urge retailers to be held accountable (September 3, 2002- Sacramento, CA) California retailers are selling cigarettes to minors at an increasing rate, according to new data collected by the California Department of Health Services. These survey results have renewed a call from the state's health and tobacco prevention groups to require storeowners to obtain a license to sell tobacco products and to suspend or revoke that license if caught selling tobacco to children. The 2002 Youth Tobacco Purchase Survey, conducted by the California Department of Health Services, shows that illegal sales of tobacco products to minors by California retailers has increased for the second year in a row. Illegal sales of tobacco are up nearly 13 percent from the 2001 survey, and more than 50 percent over the 2000 survey. 'This data shows that retailers are not following breaking the law, which will translate into more young people becoming cigarette addicts that will harm their health," said Cindy Keitel, Chair of the Western States Affiliate Board of the American Heart Association. "Retailers need to be held accountable - it is not right wrong that they continue to sell without any regard to their legal responsibilities." i While there is no state law requiring retailers to obtain a tobacco license, several local cities and counties in California have adopted local tobacco retailer licensing laws. Model local ordinances require a retailer to pay an annual licensing fee and to be subject to suspension or revocation of that license if they are caught selling tobacco to minors. More than 25 local communities have adopted tobacco licensing laws in California, including the City of Los Angeles. "Smoking is a pediatric disease and that requires the active assistance of our local and state decision makers to protect children from unlawful tobacco retailers," said David Burns, M.D., a volunteer with the American Lung Association of California. 'Tobacco licensing laws that suspend and revoke a retailer's license are some of the most effective means we have at reducing illegal tobacco sales to children." "Everyday kids start to smoke," said Ann Gourd, American Cancer nrip://www.canioffuaiung.orgipressivzvyv.)youtnsmes,nimi yi►ii,Zvvt •10/28/2002 19:20 7607769111 B&GCLLIB V-1-PROMISE PAGE 02 October 23,2002 Dear City Council: i&GIRLS CLUB OF COACMELLA VALLEY The Boys &guts Club of Coachella Valley supports licensing retailers before they are allowed to sell tobacco products. Something must be at the point-of-sale to discourage retailers from selling tobacco products to children. Bo"A Gir>,club of Coaclwua Valley For over 20 years, our organization has provided tobacco prevention education 42.600 Cook 6b Wt programs for youth ages 7 to 18, and while these programs have shown positive 9�'1Q0 Palm Deoact,CA 42211 outcomes related to increasing a youngster's knowledge about the dangers of 760 Miiso tobacco use-it is only one piece of the prevention puzzle. Retailers must take their 760 776.9111 VAX responsibility seriously. Enacting a licensing requirement seems to be a step in the ' � ' right direction. Despite the fact that everyone agrees selling cigarettes to kids is wrong, retailers CLUB keep doing it["Illegal Sale of Cigarettes to Children Increases in California, 9/3/021. BOA`S'OF DINOCTORe In fact, more than 10,000 retailers in California illegally sold tobacco to youth in the CarolynAnders= year 2001. Youth themselves confirm our worst fears: Nearty half(47.3%)of young g people in California ages 16-17 years old report that it is easy to buy tobacco. Ed aakAr Lax"maw [State of CA, Dept of Health Services] Betty Cass Larry Chank The reason youth access is such a critical issue is simply this,the easier It is for kids J. to smoke their first cigarette,the quicker they will become hooked and ultimately pay Jon FiuH for their addiction with their{fives. More than 80 percent of all adult smokers began Bob Frazu smoking before they turned 18. Half of those addicted wfll die prematurely from a Tom Frw=ac Maw M.GTIUVG tobacco-related Illness. Brian S.Ha�nilc FAq. Gina L wLe New laws restricting the way retailers can display and sell tobacco products will no doubt help underage tobacco use. But further steps are needed. A significant step Dick A ms forward would be to require retailers to become licensed before selling cigarettes B«Vrly maftqmlery and other tobacco products. Business licenses are required to sell alcohol, security Luda Moran alarms and even bottled water in vending machines. They are also required to cut Pd0h&H B.Nelson hair and give manicures. It's a shame that a license is not et �p� y required in California for a retailer to sell the only legal product that kills one in three of Its consumers. xen�ic3c Sari Palm Desert could be one of the leaders in the state by adopting such license. F sue° icnon Please consider it. J�voealerr K16 Way Twenty-fourcommunities in Califomia already have passed laws and ordinances LeoWyles requiring tobacco retailers to obtain licenses to sell tobacco products. These laws Dour Yavanian make enforcement that much simpler-merchants caught repeatedly selling FovHnAnmr tobacco to minors would face suspension or revocation of the license. BoARn or Tmenra David J.Erwin SincPnC John Foster / Joan Frm=e Taoy Li=A Al MoOan.dlea Kakln*4Worritt Dick Mauna rector of Operations N � Boys & Girls Club of Coachella Valley Lea Petcra= Ramie Richardson Don Robert*.Sr. !dark D.si== LAO WyW A Unded Way a8wicy ` The PbBrt;ve Plee*For Kids PUBLIC OHEALTH INSTITUTE Technical Assistance Legal Center dal Team Stephen P.Berzon/Linda Lye February 6 2003 Alishuler.Berzon,Nussbaum,Rubin + &Demain Stephen McG.Bundy Boalt Hall School a/Law TO: California Boards of Supervisors UC Berkeley California City Attorneys Michael G.Colantuono Ca/anruono Levin&Rozell,APC California City Councils Brian J.Fos University of Wisconsin Comprehensive California County Counsels Cancer Center California Mayors Marc B.MihalylEilen J.Garber Shure,Mihaly&Weinberger,LLP Tobacco Control Advocates Robert Post Baali Hall School of Law UCBerkely FROM: Technical Assistance Legal Center Andrea J.Saltzman Meyers.Nave.Riback.Silver&Wilson Stephen b.Sugarman RE: 10 Ways to Limit Tobacco in Your Community Boar Hall School o/Law UC Berkeley Advisory Board California is a national leader in controlling exposure to tobacco products. Serena Chen However, more than 43,000 Californians die each year from tobacco-related American Lung Association ofthe East Bay disease, and tobacco companies spend over$9 billion a year promoting their Xavier Flores Pueblo v Salud,Inc. products nationwide. Lin Glen Humboldt County Public Health Department For those communities looking to do more to protect their residents from tobacco, Cynthia rettfrlm Filler Americans f foor Nonsmokers'Rights the Technical Assistance Legal Center(TALC)is pleased to provide the enclosed Paul Hunting materials describing 10 innovative tobacco control policy options that can be taken Tobacco Control Section California Department of Heahh Services on a local level. Local elected officials concerned with their community's health Dian Kiser/rheresa Boschert and well-being can feel confident that the policy options highlighted in the BREATH-The California Smoke-Free Ban.Workplaces and Communities enclosed map and brochure have a secure legal basis. Additionally, TALC is Program-ALA-£B Nora Manzanllla available to provide free legal technical assistance(including model ordinances and Office ofthe City Attorney policies)to elected officials, municipal attorneys, or advocates interested in City of Los Angeles Tobacco Enforcement Project pursuing any of the options described. Carol McGruder San Francisco African American Tobacco-Free Project If you have any questions about the enclosed materials,if you would like technical Joan N.McNamara Dtpury•Cin'Attorney assistance, or if you would like to order more copies,please contact TALCat(510) .San Diego Cio•Atrorney's Office 444-8252 or talc@phi.org. James F.Mosher Pacifrc Institute for Research and Eval titephca U,Sugarman TALC is funded by California tobacco tax money(Proposition 99)to provide free Bonli Hall School of Law technical assistance to communities with legal questions about the regulation of UC Berkeley Amy Wong tobacco use, sales,or marketing. To learn more about TALC and to download Asian&Pacific Islander American copies of model ordinances and policies,please visit our website at Hcahh romm http://taic plii.oEg. i 1 i 505 10 Street,suite Sic;Oakland.CA 94612•(510)444-8252•(510)444-8253(Fax)•talc®phi.org •http:lRaic.phi.org 10Ways to Limit Tobacco in Your Community Tobacco-related disease kills more than 440,000 people in the United States each year. Additionally,expo- sure to secondhand smoke kills over 50,000 non-smokers each year, Because of the harmful effects of tobacco, many California communities have sought to limit tobacco use,marketing,and sales-This pamphlet describes ten policy options that a local government can take to limit tobacco in its community.These policy options are legally allowable under the 2001 U.S.Supreme Court decision limiting local government authority to regulate tobacco advertising directly.(See Lorillard Tobacco Co.v.Reilly,533 U.S.525 (2001).) Please contact TALC for more information on any of these options, including model ordinances. Additional background information and advocacy resources in the areas of secondhand smoke and enforcement of tobac- co sales-to-minors laws are available from BREATH,the California Smoke-free Bars,Workplaces and Communities Program,at www.breath-ala.org or (916) 739-9925. OTOBACCO WA102-R LicCOS-1 C, (2) Sanctions: Tobacco retailer licens- -]CA11 .� ing provides truly meaningful sanctions—a • Know who sells tobacco • Provide meaningfu! sanctions w costly suspension or revocation of the • Fund enforcement ` right to sell tobacco--for a violation of any state or local tobacco control law. California does not currently require a license to sell tobacco products.However, These sanctions serve as a deterrent to at least twenty-eight California cities or counties have retailers who might otherwise see fines as simply passed a local ordinance requiring tobacco retailers a "cost of doing business."A licensing ordinance also � to be licensed.A local ordinance can require any per- offers a community "one stop shopping" for its son who sells tobacco or tobacco paraphernalia to enforcement needs by encouraging retailer compli- obtain a special business license.Under such an ordi- ante with all tobacco control or related laws. nance,selling tobacco without a license is a crime Additionally,a licensing ordinance helps eliminate and the license can be suspended or revoked for vio- confusion by providing a common process and com- mon sanctions no matter what tobacco-related law lations of state or local tobacco control laws. is violated. It levels the playing field. Licensing is a powerful tool for enforcing tobacco control laws. It offers at least three benefits: (3) Funding: Tobacco retailer licensing (I) Information: Tobacco retailer licensing allows provides a permanent source of law enforcement a community to know who is selling tobacco and to funding. Under California law,a community can limit who is issued a license.A list of licensed retailers adopt a retailer licensing fee that is sufficient to is an important resource in reducing illegal sales to cover the cost of the entire licensing program, youth because it identifies which retailers should be including enforcement. Directly funding enforce- subject to compliance checks.Without such a list,law ment agencies to conduct compliance checks is enforcement may not know to inspect many non-tradi- one of the best ways to increase compliance with clonal retailers,such as doughnut shops,which histori- tobacco control laws. cally have the highest rate of tobacco sales to minors. For a copy of TALC's Model California Ordinance— 7i4Lc- (Tec!4,vicAL- Assisf--Ar.JcO LeGAL CenJTeR) -J"' We~651T-e: WrTP. //F<tl-G- PA-it - oRC Requiring aTobacco Retailer License,see TALC's nate completely certain types of signs,such as pro- website at http://talc.phi.org and click "TALC hibiting sandwich-board signs (a.k.a.,"A" frame signs) Publications." or signs attached to poles. Note that California Business and Professions Q Sel-F SEKWCE UtsP(.AY BArI Code section 2S612.5 provides that no more than • Require vendor-assisted sales for all one-third of the square footage of windows and clear tobacco products doors of an alcohol retailer may have advertising A local self-service display (SSD) ban requires signs of any sort Also,some communities already tobacco retailers to keep all tobacco products and may have stricter local limits on storefront signs that tobacco paraphernalia out the customer's reach, are not currently being enforced. either behind the counter or in a locked case.State For a copy of TALC's memo on How to law bans only the self-service display of cigarettes Strengthen Your Local Signs Laws,containing sample (California Business & Professions Code section sign ordinance language,see TALC's website at 22962),so a local ordinance would keep other tobac- http://talc.phi.org and click "TALC Publications." co products,such as smokeless tobacco,away from children. At least I IS California cities or counties Q LtNOD 05e� ZotJiAG LAWS have passed a local SSD ban. A SSD ban increases • Keep tobacco stores away from kids retailer accountability by requiring a greater degree Limit the number of tobacco retailers of customer interaction before selling tobacco or Many commu- tobacco paraphernalia. nities are seeing i For a copy of TALC's Model California Ordinance an increase in the Prohibiting Self-Service Displays of Tobacco Products, number of stores see TALC's website at http://talc,phi.org and click that primarily sell "TALC Publications." tobacco products,such as the "Cigarettes Cheaper!" chain.These stores are able to sell a high volume of flStoRe-FRoIJT Si G rt ORvtNMC eS tobacco products at a lower price than convenience • Reduce advertising in windows and on stores and supermarkets.Local governments can limit sidewalks the location of new tobacco retail outlets,through A local ordinance limiting storefront signage can land use tools such as a zoning ordinance or a condi- reduce the amount of window space covered by tional use permit (CUP). advertising.A community may wish to limit store- A local zoning ordinance can prohibit all tobac- front signs for aesthetic or safety reasons. For exam- co retailers from locating near residential zones ple,a local law could prohibit more than 10% of a and areas frequented by children,such as schools store's windows and clear doors from being covered and parks,or require all such retailers to locate with signs of any kind.Such a limit reduces clutter only in areas zoned for industrial or light industrial and also improves store security by permitting law use. Additionally,the ordinance can limit tobacco enforcement to observe activity inside.Even though retailers based on: the number of retailers per sign ordinances must apply gen- community population;a minimum distance erally to all signs,a reduction between retailers;and/or a maximum density of I n overall advertising may lead retailers per area. to a reduction in the Land use is one of the few tools that a commu- . amount of tobacco nity can use to regulate the location of tobacco �,.W.. advertising. A community retailers.However,land use restrictions are best also may wish to elimi- used to prevent a new problem rather than to fix an { Z�tLG {Tec,4NicAt- A551sf-Adce, LeCAt- Cen1TeR) -* WebSire: lift fjr�t -C-PWi - oRG Fnexisting one because such laws usually apply only to TOBACCO.Fgee OoTwog A?,CA 5 ew retailers. For example,to be most effective,a Eliminate smoke from outdoor public areas land use ordinance should be passed before a Local ordinances can prohibit outdoor smoking in "Cigarettes Cheaper!" store opens next to a school, any area open to the public or any place of employ- not after.At least seven local governments in ment-California Health _ California have passed land use ordinances to limit and Safety Code section tobacco retailer locations. 104495 prohibits smok- ', ' A CUP is a similar tool that can regulate more ing within twenty-five feet ~ than just the store's location.Similar to tobacco of playgrounds or tot lot ^ l retailer licensing,a CUP can regulate the conduct of sandbox areas.Outdoor tobacco retailers by setting certain conditions on the areas in which a community might con- use of property. If those conditions are violated,a sider prohibiting smoking include:dining areas;public store must stop selling tobacco.For tobacco retailers, events such as fairs,rodeos,concerts,and sporting a CUP could require that a retailer comply with all events;service lines;waiting areas;and parks.An out- state and local tobacco control laws.If the retailer door smoking ban can include a prohibition on any type violates any of these laws,the retailer's permission to of ash receptacle (e.g.,an ash can) within the smoke-free sell tobacco can be suspended or revoked. area.At least eighteen California cities or counties have For a copy of TALC's Model California Land Use passed a law to limit smoking in selected outdoor areas. Ordinance Controlling the Location and Density of Contact TALC for help in drafting an ordinance Tobacco Retailers,see TALC's website at or for samples of ordinances passed by other http://talc.phi.org and click on "TALC Publications." California communities. I ' Q _faBACC0-Free DOORWAYS © 106ACC0-FRPB WPoo2 AKP_AS • Eliminate smoke outside doorways and • Supplement the state's smoke-free other building openings workplaces low Local ordinances can prohibit outdoor • Protect multi-unit residents from smoke smoking within a set radius,such as in common areas a within twenty-five feet of gov- Communities may wish to go beyond the protec- ernment-owned or leased tions of the state's smoke-free workplace law buildings,buildings open to the (California Labor Code section 6404.5), by prohibit- IV= public,and private businesses. ing smoking in all workplaces,including in hotel lob- �' A doorway smoking ban ensures bier, in all hotel/motel rooms, in hotel meeting that the public,employees,and rooms,and in tobacco shops. customers are not involuntarily exposed In addition to regulating indoor areas currently to the dangers of secondhand smoke.A doorway ban exempted from state law,communities may wish to can apply to other openings into a building besides limit smoking in common areas of multi-unit residen- doorways,such as windows and vents.It also can tial housing (e.g.,apartments,condominiums,and resi- include a prohibition on any type of ash receptacle dential healthcare facilities),such as laundry rooms, (e.g.,an ash can) within the smoke-free radius. At lobbies,hallways,and multi-purpose rooms. At least least nineteen California cities or counties have forty-nine California cities or counties have limited passed a law to limit smoking near doorways. smoking in indoor areas not covered by state law. Contact TALC for help in drafting an ordinance or Contact TALC for help in drafting an ordinance for samples of ordinances passed by other California or for samples of ordinances passed by other J communities. California communities. eMp iL: _rALC 0 F>t-6, 6RZ -:K PHanie: (Sro) q44- 8752 QF"li-t 51TIAG ToBACeo Also,to help ensure effective enforcement of any 5f 0"50RSttiP of eVenfS new laws that are passed,tobacco control laws should • Keep tobacco ads and sponsorship out of clearly designate the enforcement agency,allow for community events private enforcement,and provide a mechanism for Tobacco sponsorship Rp 0 ji?f�! funding enforcement.Contact TALC for more infor- M�S�irttce A�wtrFp of family events such as mation on how to increase tobacco law enforcement. motorsports and 4 f rodeos is a multi-mil- PRlVATe. E4F-oRCeMenf DF lion dollar enterprise. — 105ACC0 CO�JTFot. LAWS Communides that host such events can prohibit • Sue a business operating unlawfully I tobacco advertising,sponsorship,and the distribution • Take private enforcement to small of free tobacco samples at these events if the venue claims court adopts a policy prohibiting tobacco sponsorship. When increased government enforcement is Sponsorship policies have been adopted by approxi- impossible or unworkable,or when the penalties l mately seventy-five of these events in California. associated with traditional enforcement are small and Additionally,a local government may choose to therefore ineffective,private citizens may wish to sue prohibit tobacco advertising on its own property. retailers and businesses directly to obtain compliance Please contact TALC for assistance in this area. with state and local laws. Model policies to prohibit tobacco sponsorship at A private citizen,with the assis- rodeos,fairs,and racing events are available on tance of an attorney,may sue a business TALC's website at http://taic.phi.org and click "TALC operating illegally or unfairly using �n Publications." California Business and Profession Code section 17200 (the unfair n L 0 lNCRe-A5e.0 E70F0FCeMe0T- competition law),If the private or- To BACK o C o iJT oG L AV/S citizen wins at trial,the s l • Take advantage of the many tobacco court could order the busi- control laws already on the books Hess to comply with the A community may discover that its tobacco-relat- law and impose penalties ' ed problems,such as tobacco sales to minors,are for failure to do so.The private already covered by existing law. Although a new local citizen might also recover reasonable attorney fees. ordinance could be passed targeting the same prob- Another solution is for a community to add an lem using a different approach,a more direct solution enforcement provision to existing or proposed local is to enforce the existing law. tobacco control ordinances that permits private citi- Increased enforcement can be stimulated in a zens to sue in small claims court when the ordinance variety of ways. For example,a community can exert is violated.Hiring an attorney would not be reces- pressure on the enforcement agency directly,or on nary because attorneys are not permitted in small local elected officials who can desig- claims court.A small claims provision offers con- nate tobacco laws as priorities.Or, cerned community members a direct method of increased enforcement can be fund- { increasing enforcement if the local enforcement ed through licensing All agency does not consistently focus on tobacco con- or land use fees t trot laws.ContactTALC for more information on or through how to use private enforcement in your community. R grants. .�-. -- — — — - -- — TALC is a project of the Public Health Institute •TALC,505 14th Street,Suite 810,Oakland,CA 94612 This material was made possible by funds received from the California Department of Health Services,under contract#99.85069- Illustrations by Janet Cleland.Qonuory 2003) e-Ma-i L. T roc Q pf,;. oRG pHanle 44-g252 r 1 Cea F Nt 0 Q) �agA RF! •�-_ ` NITY FqR • l (all ?APA WrJctn+t! • en a � RODFo,`To11,6i{T -• ;= E m nn Me TtsAtta AWIWED •\� Js+w• * iol:ll'],L l:i�1'D� mwit. t . ry M lJ— 4• `` R Q TOBACCO klAiLeK LiCtOSWG Set.F SERViCE DisPLAY BAiJ ©SfoReFRoO-r JSIGN QtP;0A4Cc5 aF rcE IaWER � s� - `e.) Q LAID tjSe.'ZONIAIG LAWS ©-foSACCo-FgeeDooRwAYS A r.b.ae, ' -.; 1 s (&TOBACCO-{gee 0oTPooR AReAS vw IfcMltl \\ _ . O"TOBACCO-FRCP IAIDOOR AK6AS was PROtitBiTtr1G ToBACCo :t y t'• \� C M'••. "ie� SrooSoRsttir of eV-n+S u aa;•, ` ~' Q' INCReA5e.D PMFoltceMerlr \` �; ,,::`© O or-7oBACco CaoL LAWS O O 1 O i,, ,\ rft,44 a E4F-ORCeMenf OF �� c1 -TOBACCO Con1TRoL. LAWS . ..-... ��� TALC.SOS Nsh S—t.u B 0. al l CA W2 The materiel ms made possible by(ands re hvd f the ~ Lafq io Deponmmt of Nmhh Sa.ims,ande,—a#"-85069. 1AL17-(TecIfAlicAL A5515fA ce-LeCAL C.cNTeR) ••` Web5ire:HTrP://TAL-c-pwi.oRG * er4.;riL: -TALC-�tjPr}i-6RG a''PF1OA1e: (sfo� Lit 4'�-8252 lWa l by]amtOeWWamaay200J) CALIFORNIA STATE UNIVERSITY GRADUATE STUDIES SAN BERNARDINO Behavioral Health Institute 5500 University Parkway,San Bernardino, CA 92407-2397 (909) 880-5567 June 23, 1999 Mr. Steve Chambers, D.A.T.S. (tobacco)Coordinator Desert Sands Unified School District 47950 Dune Palms Rd. La Quinta, CA 92253 Dear Mr.Chambers, Enclosed is a copy of results from several surveys conducted for the City of Palm Desert regarding youth access to tobacco. The studies were completed as one component of our partnership with the City of Palm Desert,as well as 21 other cities in the Inland Empire,to determine variables that impact the accessibility of tobacco by youth in their community. Additional data collection,and interventions will occur throughout June 2000 as well as in the City of Palm Desert as data is collected and presented to the city council,additional information will be forwarded to you as well. If you have any questions or know of others who would also be interested in our efforts please call Gwenn Norton-Perry at(909) 880-5567. Sincerely, Elizabeth A.Klonoff,Ph.D. Gwenn Norton-Perry ` Executive Director Public Policy Project Coordinator Cc. Mr. James Schnepper,Riverside Department of Health Services Captain Danny Miller,Riverside County Sheriff's Department Ms. Carlene Henriques,Tri-County South Regional Tobacco-Free Project i I The California State University Bahersfield•Channel!stands•Chico•Domingo¢Hilts- Fresm-Fullerton•Hayward-Humbotde•Long Beach•Lot Angeles-Marinas Academy Monterey Bay-Northridge-Pomona•Soerom nto-San Benwrdim•San Diego•San Pnmisao-San Jose•San Lads Obispo•San Moons•Sonoma-S udsl:`s Behavioral Health Institute P.A.C.T. Project Report City of Palm Desert When our University-Palm Desert PACT was established on June 12, 1997, we agreed to provide the City Council with various data on tobacco, specific to the City of Palm Desert. The purpose of this report is to provide data obtained from two sources, a survey of Palm Desert residents and a survey conducted with Palm Desert teen-alters who smoke cigarettes. Community Attitudes Survey One of our goals was to be able to provide city council members with better information regarding how their constituents felt about various tobacco-related issues and potential legislative solutions. To collect these data, we have been conducting large-scale community surveys throughout San Bernardino and Riverside Counties. We report on the results we have obtained to date for the City of Palm Desert. Our surveys were conducted by research assistants employed by the Behavioral Health Institute. After obtaining permission from store'owners, teams of two research assistants were assigned to 2 convenience stores and 1 gas station/mini-market in the Palm Desert area. These teams visited each store for approximately 90 minutes during the day on the weekend. The team stood outside the store and approached each person entering and asked if he/she would be willing to participate in a survey about health in the city of Palm Desert. A copy of the questions asked can be found in Appendix A. A total of 96 Palm Desert residents were surveyed. Of the 96 individuals, 51 (53.1%) were men and 45 (46.9%) were women. The sample ranged in age from 18 to 65 with an average age of 35.17 years and a median age of 31. Approximately 67.1% of the group surveyed were White, 25.9% were Latino, 2.4% were African American, and about 4,7% were Asian. Of the 96 people, 39 (40.6%) reported that they themselves were smokers, a very high percentage. General Knowledge of Tobacco First, participants were asked some basic information questions about smoking. In general, their responses revealed that they were familiar with these data. For example, when asked how old people typically were when they started smoking, answers ranged from age 8 to 20, with most people identifying that people start smoking typically between the ages of 13 and 14 (the average age reported was 13.44 with a median of 13). Eighty-one (90%) participants knew that one had to be 18 in order to legally purchase cigarettes in the State of California; 6 (6.6%) thought one had to be between the ages of 13 and 16; 1 (1.1%) thought one had to be 19, while the rest (2 or 2.2%) thought one had to be 21 to legally purchase cigarettes. Sales of cigarettes to children A number of questions asked of community members were designed to identify where exactly participants thought children obtained cigarettes. These results are presented in Table 1 and also shown in Figure 1. Table 1. Where participants say children get their cigarettes How do children obtain cigarettes? Said "Yes" Said "No" Number Percent Number Percent Buy themselves from stores or vending machines 33 34.7 62 65.3 Steal cigarettes from stores 8 8.4 87 91.6 Have adults buy cigarettes for them 28 29.5 67 70.5 Get cigarettes from parents 17 17.9 78 82.1 Have friends buy cigarettes for them 0 0 95 100 i Get them some other way 7 7.4 88 97.8 As can be seen, the highest proportion of participants thought that children either had purchased them themselves at stores or vending machines or had an adult buy cigarettes for them. Nonetheless 40 (or 41.7%) of those surveyed thought that it should be illegal to sell cigarettes to children, while another 27 (28.1%) thought that stores should be heavily punished for doing so. Sixty-five of the participants (67.7%) reported that they had seen clerks sell cigarettes illegally to children; of these, 14 people (or 21.5%) reported that they tried to do .something to stop the sale. Of the 51 (78.5% of those who said they had seen cigarettes sold to children) who did not do anything to stop or prevent the illegal sale, a variety of excuses for doing nothing were given. Ten people (19.6%) said it was not their business or responsibility; 6 (11.8%) said they did not care if cigarettes were sold to children while another 6 (11.8%) said the did not know why they did nothing; 4 (7.8%) said it would not have made a difference while another 4 (7.8%) gave other reasons and 4 more (7.8%) refused to give a reason; 3 (5.9%) said selling cigarettes to children is not really a serious offense; the remaining people gave other, similar responses. On the other hand, 52 (57.8%) of those who responded reported that they had seen a clerk refuse to sell cigarettes to a child. i Other Tobacco-Related Issues A total of 54 (56.8%) participants reported that they believed tobacco companies i definitely make a special effort to make advertising appealing to children, while another 28 (29.5%) reported that they thought tobacco companies sometimes tried to appeal to children. When asked if tobacco should be advertised on billboards, 45 (47.9%) of those surveyed said "yes"; 49 (or 52.1%) said that tobacco should not be advertised on billboards. Consistent with i this view, only 42 (or 43.8%) of the participants said they would support an ordinance in their city to ban tobacco advertising on billboards. However, most importantly, 70 (78.7%) of those that responded said they would support an ordinance in Palm Desert banning stores from putting cigarettes out where children can pick them up without asking. (See figure 2). This is particularly noteworthy, as the group of citizens that were surveyed were biased somewhat in favor of younger persons who themselves smoked; that this group favors limiting placement of cigarettes suggests that the support for this in the larger population may be even greater. Survey of Child Smokers In addition to surveying community members, we also conducted surveys with children who smoke. We first contacted the Palm Sands Unified School District Date coordinator who in turn contacted Palm Desert high school, obtained permission for us to do the survey, and found out the location of the local spot where students "hang out" and smoke cigarettes. We then ; chose times either before school, during lunch breaks, or after school, and a member of the Behavioral Health Institute staff, accompanied by a research assistant, went to these local "hang out" sites. We approached teen-agers who were there and asked if we could ask them some questions about their smoking. A copy of the survey used for this portion is presented in Appendix B. A total of 15 teens participated. Of the 15 participants, 6 (40%) were girls and 9 (60%) were boys; 11 (73.3%)were White, while the remaining 4 (26.7%)were Latino. Their age ranged from 14 to 17 (average age was 15.8). All but 1 of 15 teen-agers smoked. The age they reported they began smoking ranged from 6 to 17 (average age was 12.27). These 15 children each smoked an average of 7.28 cigarettes per day (range was 0 cigarettes to 1 pack of cigarettes per day). They tended to smoke the brands that are advertised most frequently; 7 (or 46.7%) said they smoked Marlboros while 7 (46.7%) said they smoked Camels (one participant was a former smoker). No other cigarette brands were reported. A number of questions were asked about the factors that may have prompted these children to start smoking (note: these do not total to 100% because children could have said "yes" to more than one factor). Peers or friends were important to 8 (53.3%) of the children; members of their family smoking was acknowledged as important by 3 (or 20%); 5 (33.3%) started smoking because they were curious about it; 1 (6.7%) said it helped with stress; and 5 (33.3%) gave various other reasons for starting to smoke. A number of questions were designed to help us identify exactly where children get their cigarettes. These results are presented in Table 2. Table 2. Where teen-aged smokers say they get their cigarettes How do you get your cigarettes? Said "Yes" Said "No" Number Percent Number Percent Buy themselves from stores or vending machines 7 46.7 8 53.3 Get ("bum") cigarettes from their friends 10 66.7 5 33.3 Get cigarettes from their parents 2 13.3 13 86.7 Get free samples of cigarettes 0 0 15 100 Steal cigarettes 0 0 15 100 Ask a stranger to buy cigarettes for them 0 0 15 100 Ask a friend to buy cigarettes for them 2 13.3 13 86.7 Some other way 1 6.7 14 93.3 The adults in the community survey said the two most likely methods of children obtaining cigarettes were that they bought them themselves or they had adults buy cigarettes for them. However, while only a little more than one-third of the adults surveyed thought this was the case, as can be seen from the above Table, almost half of the children said they obtained their cigarettes in these ways. In addition, although a relatively large percentage of the members of the community thought that children approached strangers and asked them to buy cigarettes for them, none of the teens in this sample reported obtaining cigarettes in this manner. The overwhelming number of teen-alters in this group reported "bumming" cigarettes from their friends; where their friends get these cigarettes remains a mystery. Finally, we asked the children a number of questions about their perceptions and experience regarding the ease with which cigarettes could be obtained. When asked how easy it was to buy cigarettes (Figure 4), 3 (20%) said it was "very easy," 6 (40%) said it was "fairly easy,"while only 4 (26.7%) said it was fairly difficulty (1 had never tried to buy cigarettes while another children does not buy his/her own cigarettes). When asked how often they were asked for their age or for identification (Figure 5), 3 (20%) said always, 1 (6.7%) said usually, 6 (40%) said sometimes, 1 (6.7%) said rarely, and 1 (6.7%) said never (3 students, or 20%, who don't buy their own could not answer this question). We next asked how often they were sold to after they had been asked for their age or for identification (Figure 6); surprisingly, 1 (6.7%) said always, 3 (20%) said usually, 1 (6.71/6) said rarely, and 3 (20%) said never (with 5 students who do not buy their own unable to answer and 2 who reported they did not know); this is somewhat inconsistent with published reports, which suggest that clerks are less likely to sell cigarettes when they ask for age or identification. Summary and Conclusions Taken together, these results suggest a number of areas for future development of tobacco-related issues in Palm Desert. First, although adults seem to know some basic information about tobacco, they appear to have little idea of the degree to which Palm Desert children illegally buy cigarettes for themselves. Because the children in this study perceive that asking their age or for identification does not necessarily decreases their likelihood of being able to purchase cigarettes, it suggests that additional merchant education and emphasis on compliance with the laws banning sales of cigarettes to children is necessary before this legislated requirement can serve to be a real deterrent to children being able to get cigarettes; however, this must be coupled with a community education program that makes adults aware of the harm they are doing when they comply with requests from children to purchase cigarettes for them. Second, adult residents tend to support banning tobacco billboards, so Palm Desert can feel comfortable ensuring that the voluntary removal of tobacco related advertising called for in the tobacco settlement is completed. Finally, adults overwhelmingly support the passage of a city ordinance that would make it illegal to display cigarettes where children can reach them easily; a number of models for the way in which to do this are already available. Many researchers feel that, when the clerk is required to look directly at a child (who would then be required to ask the clerk directly for a pack of cigarettes), the clerk is more likely to ask the child his/her age or for identification. Thus, passage of this ordinance may also facilitate decreased illegal sales of tobacco products to children. Elizabeth A. Klonoff, Ph.D., Executive Director, Behavioral Health Institute, California State University, San Bernardino Gwenn Norton-Perry, Project Coordinator, P.A.C.T. Project, Behavioral Health Institute, California State University, San Bernardino Roxanna Alcaraz, M.A. Administrative Director and Project Coordinator, P.A.C.T. Project, Behavioral Health Institute, California State University, San Bernardino Carol Ross-Lewis, Project Associate, P.A.C.T. Project, Behavioral Health Institute, California State University, San Bernardino Rebecca Paynton, M.S., Project Associate, P.A.C.T. Project, Behavioral Health Institute, California State University, San Bernardino Fi ure 1. Where children get cigarettes: Community perceptions 35 34.7 tier, 30 29.5 � 25 20 N 17.9 0 r 315 a 4a c s 010 8.4 7. N 4 r = fi nor p — Steal from stores Get from parents Get another way Buy themselves Adults buy for them Friends buy for them ,� pia ~•4. V• • - _.yam ..- r- fit.+..t{i,• -ia• ~°•`•� •�•,� `:'ii • � `' i •r4L 4•_ �� r I., r k a`tW. :i.+ t f .�' i✓J; 'i a - s• �fir` r.+l", �•�}7]..'i�' ��f i �}l rff�iit}i7,�( V�• f .i i 1 5 ;-4:.�:s C.F � �i4 y` ~+ ���iCt' .,ar.•'1.if.ri;j• 1y� K'r�.r��,,�tt'E •t�` �i a �_'�i ZGT4 •i"-L.S r� 1 w �� :x!;r R'+' C i"ers L'�• +•�,,t }' 'z 1**f {yam sx r r. i N. Eix�4 .�� j oC�r r 4 r -'•Al` �_4 � Sr ti>ral " r� s a,E•-.+.r:' �cR1 5i r:'+`i :.. „iFT r{i '` 'a Y11+ K�. +9'. `i j1 .y-_• i��*„�! �q-•1it {i,.r'ifj� t ','1�.'� ;; .•,r�." aryt� aY�, .r • y Lri _ y.: tst''+Ki?� a. 1. ��T I•t, i1i Y 'S t L4 K C5-i �� � ,�q�� •��TJ d .r � .� a epl ,�71.• j i 33 iiti'S� � �� rf�. yst.�,a���h �• ^i� � "s,9.a #k �� r' 9�s M• "'J�I-si ik�n� -1 s ��. t I �4s1.�{'rF+�5� i.a >. + %"w •>1'r ',i 'a'z R"y '-t•i''�[ RCt o- �otiii . '•` *' E' .r y R e,r f« ly £+�.� �i��� v` � 4 .�__$•9�i�. ��'.r;'`=i',> �-i'iH t y a++�j,9a. Figure 3. Where Palm Desert teens get their cigarettes 70 66.7 60 . 50 46.7 m r40 -C30 m . U L aZ0 13.3 13.3 10 6.7 0 0 0 0 'Bum'from fiends Free samples Ask a stranger to buy Some other way Buy themselves From their parents Steal agarettes Ask a fiend to buy Figure 4. How easy is it for Palm Desert teens to buy cigarettes? 40 35 � P 230 c 25 20 zo 15 10 5 0 o 0 Fairly easy Very difficult Very easy Fairly difficult Impossible Figure 5. How often are Palm Desert teens asked for age or identification? 40 `0 35 �30 'OC25 220 zo C15 m a10 6.7 6.7 5.7 5 0 09M M= =— W Usually Rarely Always Sometimes Never I i Figure 6. How often sold to after asked age or for ID? 20 2° 15 I ti O CL '10 C 6.7 6.7 a� a 5 0 n Usually Rarely Always Sometimes Never RESOLUTION NO. 97--42A A RESOLU 17ON OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, SUPPORTING A UNIVERSITY-CITY TOBACCO PACT WITH THE BEHAVIORAL HEALTH INSTITUTE, CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO (CSUSB). the City Council of the City of Palm Desert has placed a high priority on decreasing youth access to tobacco; and, WHEREAS, the City of Palm Desert endorses a broad-based public policy approach to community improvement and the promotion of health for its youth; and, WHEREAS, the community residents, youth, city officials, and businesses' participating in the University-City PACT will develop a more comprehensive understanding of tobacco and its impacts on youth in our community and public Policy approaches that result in positive community benefit; NOW, THEREFORE, BE IT RESOLVED by the City Council of the Cit y of Palm Desert, California, as follows: SECTION l: That the City Council of the City of Palm Desert supports the University-City PACT concept as a means of integrating health concerns into a community and sdentific approach to improving the overall environment in the City of Palm Desert and intends to participate in the Project as established by the Behavioral Health Institute, .CSUSB and the State of California Department of Health Services. SECTION 2: That the City Council of the City of Palm Desert supports the University-City PACT as a means of providing a comprehensive community- based intervention to decrease illegal sales of tobacco to minors in the City. SECTION 3: That the City of Palm Desert, in conjunction with the Behavioral Health Institute of CSUSB, will provide a ten minute forum to the City at three future City Council meetings. The University presentation will focus on results of youth purchase surveys in the community, and a thorough analysis of the City tobacco ordinance, and a discussion of other issues relevant to tobacco control in the City. The City also agrees to provide the University with information on any other city or community committees that are interested in issues of children's health. a�-o/ ORDINANCE NO. 1049 AN ORDINANCE OF THE CITY OF PALM DESERT, CALIFORNIA REGARDING THE LICENSURE OF TOBACCO RETAILERS AND AMENDING THE PALM DESERT MUNICIPAL CODE The City Council of the City of Palm Desert, California does ordain as follows.. SECTION L FINDINGS. The City Council of the City of the City of Palm Desert, California hereby finds and declares as follows WHEREAS, state law prohibits the sale or furnishing of cigarettes, tobacco products and smoking paraphernalia to minors, as well as the purchase, receipt, or possession of tobacco products by minors(Cal. Pen. Code § 308); and WHEREAS, state law requires that tobacco retailers check the identification of tobacco Purchasers who reasonably appear to be under 18 years of age (Bus. & Prof. Code § 22956) and provides procedures for using persons under 18 years of age to conduct onsite compliance checks of tobacco retailers (Cal. Bus. &Prof. Code § 22952), and WHEREAS, state law requires that tobacco retailers post a conspicuous notice at each point of sale stating that selling tobacco products to anyone under 18 years of age is illegal (Cal. Bus. & Prof. Code § 22952, Cal. Pen. Code § 308); and WHEREAS, state law prohibits the sale or display of cigarettes through a self-service display and prohibits public access to cigarettes without the assistance of a clerk (Cal. Bus. & Prof. Code § 22962), and WHEREAS, state law prohibits the sale of"bidis" (hand-rolled filterless cigarettes imported primarily from India and Southeast Asian countries) except in adult-only establishments (Cal. Pen. Code § 308.1); and RNMUSOJE1212213 'I V RIJLIVNI�LC NU. IU4V WHEREAS, state law prohibits the manufacture, distribution, or sale of cigarettes in packages of less than 20 and prohibits the manufacture, distribution, or sale of"roll-your-own' tobacco in packages containing less than 0.60 ounces of tobacco(Cal. Pen. Code § 308.3), and WHEREAS, state law prohibits public school students from smoking or using tobacco products while on campus, while attending school-sponsored activities, or while under the supervision or control of school district employees (Cal. Educ. Code § 48901(a)); and WHEREAS, despite these restrictions, minors continue to obtain cigarettes and other tobacco products at alarming rates. Each year, an estimated 924 million packs of cigarettes are consumed by minors 12 to 17 years of age, yielding the tobacco industry $480 million in profits from underage smokers; and WHEREAS, in a 2001 California youth-buying survey, 17.I% of retailers surveyed unlawfully sold tobacco products to minors; and WHEREAS, 88% of adults who have ever smoked tried their first cigarette by the age of 18 and the average age at which smokers try their first cigarette is 14 1/2, and WHEREAS, the City of Palm Desert, California has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate tobacco sales and use; in discouraging the illegal purchase of tobacco products by minors; in promoting compliance with laws prohibiting sales of cigarettes and tobacco products to minors; and finally, and most importantly, in protecting children from being lured into illegal activity through the misconduct of adults; and WHEREAS, the California courts in such cases as Cohen v. Board of Supervisors, 40 Cal. 3d 277 (1985), and Bravo Vending v. City of Rancho Mirage, 16 Cal. App. 4*' 383 (1993), have affirmed the power of the City of Palm Desert, California to regulate business activity in order to RMBUTDJF 112283 2- UKDIN"Ut. NU. 1U4V discourage violations of law; and WHEREAS, a requirement for a tobacco retailer license will not unduly burden legitimate business activities of retailers who sell or distribute cigarettes or other tobacco products to adults. It will, however, allow the City of Palm Desert, California to regulate operation of lawful businesses to discourage violations of federal, state, and local tobacco-related laws; and WHEREAS, 65% of California's key opinion leaders surveyed support implementation of tobacco-licensing requirements. NOW THEREFORE, it is the intent of the City Council of the City of Palm Desert, California, in enacting this ordinance, to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those which prohibit or discourage the sale or distribution of tobacco products to minors,but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalty provided therefore. SECTION U. SEVERABII,ITY. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Palm Desert, California hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. SECTION III. Chapter 8.34 of the Palm Desert Municipal Code is hereby amended to read as follows: R MUS DIE,212ze3 -3- ORDINANCE NO. 1049 Sec. 8.34.010. LICENSING-TOBACCO RETAILER DEFINITIONS. The following words and phrases, whenever used in this article, shall have the meaning defined in this section unless the context clearly requires otherwise: (a) "Department" means Code Compliance Department of the Department of Development Services. (b) "Person"means any natural person, partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee, or any other legal entity. (c) "Proprietor" means a Person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a Person has a ten percent (10%) or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a Person can or does have, or can or does share, ultimate control over the day-to-day operations of a business. (d) "Tobacco Product" means any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco. (e) "Tobacco Paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking or ingestion of Tobacco Products. (f) "Tobacco Retailer" means any Person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco, Tobacco Products, or Tobacco Paraphernalia; "Tobacco Retailing" shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco, Tobacco Products, or Tobacco Paraphernalia sold, offered for sale, exchanged, or offered for exchange. Sec. 8.34.020. REQUIREMENT FOR TOBACCO RETAILER LICENSE. (a) It shall be unlawful for any Person to act as a Tobacco Retailer without first WBUS DJD21Zi53 -4- ORDINANCE NO. 1049 obtaining and maintaining a valid Tobacco Retailer's license pursuant to this chapter for each location at which that activity is to occur. No license may issue to authorize Tobacco Retailing at other than a fixed location. For example, Tobacco Retailing by Persons on foot and Tobacco Retailing from vehicles are prohibited. (b) The payment of the license fee designated in Section 8.34.060 confers paid status upon a license for a term of one year. Each Tobacco Retailer shall apply for the renewal of his or her Tobacco Retailer's license no later than thirty(30) days prior to expiration of the payment term. (c) Nothing in this chapter shall be construed to grant any Person obtaining and maintaining a Tobacco Retailer's license any status or right other than the right to act as a Tobacco Retailer at the location in the City identified on the face of the permit. For example, nothing in this chapter shall be construed to render inapplicable, supercede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on smoking in enclosed places of employment made applicable to business establishments by California Labor Code section 6404.5. Sec. 8.34.030. APPLICATION PROCEDURE. Application for a Tobacco Retailer's license shall be submitted in the name of each Proprietor proposing to conduct retail tobacco sales and shall be signed by each Proprietor or an authorized agent thereof. It is the responsibility of each Proprietor to be informed of the laws affecting the issuance of a Tobacco Retailer's license. A license that is issued in error or on the basis of false or misleading information supplied by a Proprietor may be revoked pursuant to Section 8.34.090 of this chapter. All applications shall be submitted on a form supplied by the Department and shall contain the following information' 1. The name, address, and telephone number of each Proprietor. 2. The business name, address, and telephone number of the single fixed R.N,MUSTJE',212283 -5- V KUI VVAt%U C. NU. IV`47 location for which a Tobacco Retailer's license is sought. 3. The name and mailing address authorized by each Proprietor to receive all license-related communications and notices(the"Authorized Address"). If an Authorized Address is not supplied, each Proprietor shall be understood to consent to the provision of notice at the business address specified in subparagraph 2. above. 4. Whether or not any Proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation. 5. Such other information as the Department deems necessary for the administration or enforcement of this ordinance. Sec. 8.34.040. ISSUANCE OF LICENSE. Upon the receipt of an application for a Tobacco Retailer's license and the license fee, the Department shall issue a license unless substantial record evidence demonstrates one of the following bases for denial: (a) the application is incomplete or inaccurate, or (b) the application seeks authorization for Tobacco Retailing by a Proprietor for which or whom a suspension is in effect pursuant to Section 8.34.080 of this chapter; or by a Proprietor which or who has had a license revoked pursuant to Section 8.34.090 of this chapter, or (c) the application seeks authorization for Tobacco Retailing that is prohibited pursuant to Section 8.34.020 of this chapter (e.g., mobile vending)], that is unlawful pursuant to this Code Palm Desert Code (e.g. the zoning code)], or that is unlawful pursuant to any other local, state, or federal law. PJ-MUs\DJE\2122E3 -6- VtWINNM-t NU. 1U4y Sec. 8.34.050. DISPLAY OF LICENSE. Each license shall be prominently displayed in a publicly visible location at the licensed prenuses. Sec. 8.34.060. FEES FOR LICENSE. The fee to issue or to renew a Tobacco Retailer's license shall be established by resolution of the City Council of Palm Desert, California. The fee shall be calculated so as to recover no more than the total cost of license administration and enforcement, including, for example, but not limited to, issuing the license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators. Fees are nonrefundable except as may be required by law. Sec. 8.34.070. LICENSES NONTRANSFERABLE. A Tobacco Retailer's license is nontransferable. If the information required in the license application pursuant to Section 8.34.070, items 1, 2, or 3, changes a new Tobacco Retailer's license is required before the business may continue to act as a Tobacco Retailer. For example, if a Proprietor to whom a license has been issued changes business location, that Proprietor must apply for a new license prior to acting as a Tobacco Retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a Tobacco Retailer. Sec. 8.34.080. LICENSE VIOLATION. VIOLATION OF TOBACCO-RELATED LAWS. It shall be a violation of a Tobacco Retailer's license for a licensee or his or her agent or employee to violate any local, state, or federal tobacco-related law. (b) LICENSE COMPLIANCE MONITORING. Compliance with this ordinance shall be monitored by Code Compliance Department. The City Council anticipates that compliance checks of a sample of Tobacco Retailers selected or based on complaints will be conducted at least one time during each twelve-month period. R11BUS`DJE1212213 -7- U p'lj"" U r, See. 8.34.090. SUSPENSION OR REVOCATION OF LICENSE. (a) SUSPENSION OR REVOCATION OF LICENSE FOR VIOLATION. In addition to any other penalty authorized by law, a Tobacco Retailer's license shall be suspended or revoked if the Department finds, after notice to the licensee and opportunity to be heard, that the licensee or his or her agents or employees has or have violated the requirements of this Ordinance or other conditions of the license imposed pursuant to Section 8.34.080 above. (1) Upon a finding by the Department of a first license violation within any sixty-month (60) period, the license shall be suspended for thirty(30) days (2) Upon a finding by the Department of a second license violation within any sixty-month (60) period, the license shall be suspended for ninety(90) days. (3) Upon a finding by the Department of a third license violation within any sixty-month (60) period, the license shall be suspended for one(1) year. (4) Upon a finding by the Department of a fourth license violation within any sixty-month (60) period, the license shall be revoked and the Proprietor or Proprietors who had been issued the license shall never again be issued a Tobacco Retailer's license pursuant to this charter. (b) SUSPENSION OF LICENSE FOR FAILURE TO PAY RENEWAL FEE. A Tobacco Retailer's license that is not timely renewed pursuant to Sec 8.34.020(b) shall automatically be suspended by operation of law. If not renewed, a license shall be automatically revoked two (2)years after the renewal date. (c) REVOCATION OF LICENSE ISSUED IN ERROR. A Tobacco Retailer's license shall be revoked if the Department finds, after notice and opportunity to be heard, that one R.vMUSOJE\212283 -8- ORDINANCE NO. 1049 or more of the bases for denial of a license under Section 8.34.040 existed at the time application was made or at anytime before the license issued. The revocation shall be without prejudice to the filing of a new application for a license. (d) APPEAL OF SUSPENSION OR REVOCATION. A decision of the Department to revoke or suspend a license is appealable to the City Council and must be filed with the City Clerk within ten days of mailing of the Department's decision. An appeal shall stay all proceedings in furtherance of the appealed action. A suspension or revocation pursuant to Section 8.34.090(b) is not subject to appeal. Sec. 8.34.100. ADMINISTRATME FINE. (a) GROUNDS FOR FINE. If the Department finds, based on substantial evidence, that any unlicensed Person, including a Person named on a revoked or suspended license, has engaged in Tobacco Retailing in violation of Section 8.34.020 of this chapter, the Department shall fine that Person as follows: 1. a fine not exceeding one hundred dollars($100) for a first violation in any twelve-month (12)period; or 2. a fine not exceeding two hundred dollars($200) for a second violation in any twelve-month (12) period; or 3 a fine not exceeding five hundred dollars($500) for a third or subsequent violation in any twelve-month (12) period. Each day that such a Person engages in Tobacco Retailing shall constitute a separate violation. RAMUSIDIEQ 12283 -9- ORDINANCE NO. 1049 (b) NOTICE OF VIOLATION. A notice of violation and of intent to impose a fine shall be personally served on, or sent by certified mail to, the Person or Persons subject to the fine. The notice shall state the basis of the Department's determinations and include an advisement of the right to request a hearing to contest the fine. Any request for a hearing must be in writing and must be received by the Department within ten (10)calendar days of personal service of the notice on the Person or Persons subject to a fine or within fifteen (15)calendar days if the Person or Persons subject to a fine are served by mail. (c) PAPOSITION OF FINE. If no request for a hearing is timely received, the Department's determination on the violation and the imposition of a fine shall be final and payment shall be made within thirty(30) calendar days of written demand made in the manner specified above for a notice of violation. If the fine is not paid within that time, the fine may be collected, along with interest at the legal rate, in any manner provided by law. In the event that a judicial action is necessary to compel payment of the fine and accumulated interest, the Person or Persons subject to the fine shall also be liable for the costs of the suit and attorney's fees incurred by the City in collecting the fine. (d) NOTICE OF HEARING. If a hearing is requested pursuant to subsection (b)of this section, the Department shall provide written notice, within forty-five (45) calendar days of its receipt of the hearing request, to the Person or Persons subject to a fine of the date, time, and place of the hearing in the manner specified above for a notice of violation. (e) HEARING DECISION. The hearing officer shall render a written decision and findings within twenty(20) working days of the hearing. Copies of the decision and findings shall be provided to the Person or Persons subject to a fine in the manner specified above for a notice of violation. (f) FINALITY OF THE HEARING OFFICER'S DECISION. The decision of the hearing officer shall be the final decision of the City. itlBus\DTEQ12283 -10- UlW LlV t11V LL. Irv. 1 V.7 (g) APPEAL TO SUPERIOR COURT OF LIMITED JURISDICTION. Notwithstanding the provisions of section 1094.5 or section 1094.6 of the Code of Civil Procedure, within twenty (20) days after personal service of the hearing officer's decision and findings, or within twenty-five(25) days if served by mail, any Person subject to a fine may seek review of the hearing officer's decision and findings by the superior court of limited jurisdiction. A copy of the notice of appeal to the superior court shall be timely served in person or by first- class mail upon the Department by the contestant. The appeal shall be heard de novo, except that the contents of the Department's file in the case shall be received in evidence. A copy of the records of the Department of the notices of the violation and of the hearing officer's decision and findings shall be admitted into evidence as prima facie evidence of the facts stated therein. (h) FAILURE TO PAY FINE If no timely notice of appeal to the superior court is filed, or the Department is not timely served with a copy of a notice of appeal, the hearing officer's decision and findings shall be deemed confirmed and the fine shall be collected pursuant to subsection (c) of this Section. Sec. 8.34.110. ENFORCEMENT. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. (a) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this ordinance shall constitute a violation. (b) In addition to the administrative enforcement procedures provided by Section 8.34.090 of this chapter violations of this ordinance may, in the discretion of the Prosecutor, be prosecuted as infractions. (c) Violations of this ordinance are hereby declared to be public nuisances. (d) Violations of this ordinance are hereby declared to be unfair business practices and P-MBus\D]E\212293 -11- VIW LI AV"_C. lVu. luny 1 are presumed to at least nominally damage each and every resident of the community in which the business operates. (e) In addition to other remedies provided by this chapter or by other law, any violation of this ordinance may be remedied by a civil action brought by the City Attorney, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. (f) Any Person acting for the interests of itself, its members, or the general public may bring an action for injunctive relief to prevent future such violations or to recover such actual damages as he or she may prove. SECTION IV. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be published once in the newspaper of general circulation printed within the City of Palm Desert, California. It shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED AND ADOPTED this 12th day of June 2003, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: CRITES, FERGUSON, KELLY, SPIEGEL, BENSON NOES: NONE ABSENT NONE ABSTAIN: NONE rof Benson, Mayor alm Desert, California R?vMUSDTE1212283 -12- ' ORDINANCE NO. 1049 ATTEST: By: Rachelle D. Klassen, City Clerk City of Palm Desert, California APPROVEnATO FORM: , By: llaviVEmin, City Attorney City of Palm Desert, California RNMUSOM21 Zzi3 -13- MEMORANDUM TO: Cathedral City Cannabis Task Force FROM: Erica L. Vega, Assistant City Attomey DATE: August 21, 2017 RE: Amendments to Cannabis Licensing, Land Use and Nuisance Regulations In light of the passage of Proposition 64, legalizing adult-use of cannabis, and the recent passage of SB 64, integrating medicinal and adult-use cannabis licensing and regulation at the state level into the "Medicinal and Adult-Use of Cannabis Regulation and Safety Act" (MAUCRSA), the City Attorney's office was asked to draft updates to the Cathedral City Municipal Code to allow adult-use cannabis businesses, ensure consistency with the current state laws, and to address certain public nuisances that may arise from cannabis use and cannabis businesses. Proposed redline revisions to the portions of the Code related to cannabis business licensing, cannabis nuisances, and cannabis zoning and land use regulations have been provided to the Task Force. This memorandum summarizes the major changes proposed and the issues that the City would like the Task Force to consider and provide feedback on to assist with finalizing the updates to the Code. 1. Cannabis Business Licensing — Chapter 5.88 (a) License Types. Consistent with existing practice, the City's license types generally minor the license types at the state level, except the City does not distinguish between different types of cultivation and manufacturing. However, the state allows for a "microbusiness" license that is not included in the proposed regulations. Microbusinesses are licensed to engage in a mix of cultivation, manufacturing, distribution and retailing. Microbusinesses would be allowed in the City, but would get licenses for whatever activities the business will conduct. Also, MAUCRSA eliminated the transporter license type and that change has been carried over to the draft ordiannces. (b) Tribal Land. The Agua Caliente tribe has requested that we incorporate provisions into the City's ordinances that would prohibit cannabis businesses on land that is within their reservation or trust lands. These lands are technically owned by the federal government. To date, no cannabis businesses have been approved on such land and adding this provision would not impact the ability for existing cannabis businesses to renew their licenses. a (c) Good Moral Character. Most of the revisions proposed to this definition are non-substantive and just improve the clarity of the definition. However, I have proposed we eliminate the requirement of a pre-denial hearing and instead follow the standard practice of allowing a denial to be appealed. I have also proposed that we RIV#4814-6229-6397 v1 Cathedral City Cannabis Task Force August 21, 2017 Page 2 change the provision that prohibits the City from relying solely on a "controlled substance" conviction as evidence of a lack of moral character to a "cannabis" conviction. This would make it easier for the City to deny a license to someone with a history of dealing serious drugs. (d) Owners. Under MAUCRSA an "owner" is a person who holds a 20% stake in the company, the CEO/Board Members of a nonprofit, or"[a]n individual who will be participating in the direction, control, or management" of the cannaibis business. The City's current regulations (which reflected the definition of owner in the MCRSA) consider anyone with an ownership stake to be an "owner." This change impacts who must be background checked to get a license, and when a change in ownership will be something the city must approve first. The City can adopt a more restrictive definition of "owner" than the MAUCRSA provides if desired. (e) Continuing Operations without State License. MAUCRSA is silent as to whether an existing locally licensed business may continue to operate after 1/1/18 in the gap of time between 1/1/18 and when the State approves a temporary license for the business. The draft ordinance proposes to allow such businesses to continue provided that it has applied for a license by 1/15/18. Feedback on whether this is a reasonably timeframe is needed. (f) Start Date for Adult-Use Applications. This ordinance does not establish a date for beginning to accept adult-use license applications, which means they can be filed whenever the Ordinance takes effect (likely in November). Is a delayed start date desired? (g) Volunteer/Employee Background Checks. The existing text of the Code is unclear as to whether background checks are one time only or if they must be redone every 12 months. I've revised to require one background check with a subsequent arrest notification. (h) Consumption at Dispensaries. Consumptions is currently prohibited at cannabis businesses. MAUCRSA auth rizes local agencies to permit consumption at dispensaries and micro businesses in ag -restricted areas that are not visible to the public. Does the City want to allow this. If so, are there any additional restrictions we should place on it? (i) Packaging/Labeling. Exisitng provision in code prohibits distributors from receiving unpackaged edibles. Draft MCRSA regulations prohibited receiving any cannabis products that were not packaged. MAUCRSA only requires cannabis products to be packaged "prior to delivery or sale at a retailer" and it is unknown what RIV#4814-6229-6397 v1 Cathedral City Cannabis Task Force August 21, 2017 Page 3 the MAUCRSA regulations will say. Should the City cut this regulation entirely and allow the State law and regulations to control? 2. Cannabis Land Use and Zoning (Title 9) (a) Testing Labs. Testing labs are currently allowed by right in certain zones. Per previous Council direction, we will also be allowing them with a CUP in zones with cultivation and manufacturing are allowed with a CUP. (b) Open Space Zone. Originally, only cultivation was permitted with a CUP in the OS zone. When the code was updated to allow for distribution and transportion, direction was given to allow those uses wherever cultivation and manufacturing was allowed. This included the OS zone, though the issue of whether it was appropriate to include such intensive uses in the OS zone was not specifically discussed. Outdoor cultivation is not permitted. The Task Force should consider whether it is appropriate to allow cannabis businesses in the OS zone. (c) Excessive/Undue Concentration. For the purposes of state licensing, MAUCRSA defines an "excessive concentration" of retailers/microbusinesses in a manner similar to undue concentration in the context of alcoholic beverage licensing. MAUCRSA expressly allows the City to set a population to business ratio that would supercede the State's definition. Nothing requires the City to use the MAUCRSA definition, set a population to licensee ratio for its own conditional use permit regulations, or even include an excessive/undue concentration limitation on dispensaries in the Code. Nonetheless, the existing undue concentration on dispensaries has been a major point of concern and the Task Force should consider what, if any, limitations the City should have on dispensaries in close proximity to each other. (d) Resort Residentia! zone. The RR zone is not currently considered a "residential zone"for the purposes of setbacks because residences are not allowed by right in that zone. No uses are allowed by right in the RR zone. Do we want to include the RR zone as a residential zone? (e) Youth Centers. MAUCRSA defines a "youth center" for the purposes of limiting where billboard advertising may be placed and where cannabis can be consumed. This definition is much more restrictive than the current definition of youth center in the Code, which is used for the purpose of determining where a cannabis business may be located. Do we want to use the definition in MAUCRSA? Keep the current definition? Revise the current definition? RIV#4814-6229-6397 0 i Cathedral City Cannabis Task Force August 21, 2017 Page 4 3. Cannabis Nuisances (Section 13.80.240) (a) Outdoor grows. Does the City want to prohibit outdoor cultivation for personal use? MAUCRSA expressly authorizes local agencies to do this. If not, are there any reasonable restrictions on outdoor grows that the City would like to see? (b) Visibility. MAUCRSA prohibits growing cannabis at a private residence in an area that is visible from a "public place." I've added provisions to extend this to privately owned common areas within residential developments. Are there any other visibility concerns? For example, we could say that the cannbis may not be visible to neighboring properties. (c) Odor. I have proposed text from SLO's code that aims to address nuisance odors. This would apply citywide, not just to cannabis businesses. RIV#4814-6229-6397 A (Gateway Industrial Dark at Palm Desert Property Owners' Association, Inc. P® ]Box 12950 Palm Desert, CA 92255 (760) 770-3100 - Fax (760) 770-3199 April 28,2017 Mr. Ryan Stendell Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 By e-mail: rstendell@cityofpalmdesert.org Original by U.S. Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Ryan: I have reviewed the referenced draft ordinance on behalf of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., and offer the following comments: 1. Apparently the draft ordinance does not specify a minimum distance by which a commercial marijuana operation must be separated from residential property. Ordinances adopted by other Coachella Valley cities require a minimum distance of 250 feet and we suggest that at least that standard should apply in Palm Desert; 2. The recorded CC&Rs of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc.,provides at Section 8.2.5 Nuisance: "No Parcel or portion thereof shall be used for dny purpose or business which is dangerous or unsafe,which constitutes a nuisance, or is in any way obnoxious or offensive by reason of, among other things,the emission of dust, odors, smoke,vibrations, electro- mechanical disturbances, intermittent lights, glare, noise, fumes, ash or sound." We ask that any party requesting a CUP under this ordinance (when/if adopted)be advised of this provision and that approval by this Property Owners' Association be required before approval of any such CUP. i Mr. Ryan Stendell April 28, 2017 Page 2 of 2 Thank you for your attention to these requests,please feel free to contact us with any questions or comments that you may have. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., Thomas S.Noble President Cc: Caroline Halcovich Fabio Ceresa r 5/3/2017 GmaiI-Attached Letter MGrn if Tom Noble <noblecompany760@gmail.com> Attached Letter sharon noblecompanyllc.com <sharon@noblecompanyllc.com> Sat, Apr 29, 2017 at 10:57 AM To: noblecompany760@gmail.com Original Message -- From: eceja@cityofpalmdesert.org To: sharon@noblecompanyllc.com Cc: rstendell@cityofpalmdesert.org Date: April 28, 2017 at 6:05 PM Subject: RE: Attached Letter Hi Tom, Thank you for your letter regarding the City's Cannabis Ordinance. So far the committee has not considered a separation requirement between cannabis uses and residential properties. I think this is because some are looking to treat cannabis like any other retail establishment and we do not have that requirement for other retail uses. I will present your idea to the committee at their next meeting in late May and see what they recommend. Regarding you second concern, property owners retain the right to lease to businesses they see fit for their properties. All Conditional Use Permit applications require the property owner to consent (sign off)to the use and without property owners consent we will not even take in the application. .�.�.( Thanks, Eric Ceja, Principal Planner Community Development Department eceja@cityofpalmdesert.org P: (760) 346-0611 F: (760) 776-6417 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 —Original Message— From: Stendell, Ryan Sent: Friday, April 28, 2017 12:01 PM To: Ceja, Eric Subject: FW: Attached Letter Ryan Stendell Director of Community Development Ph: 760.346.0611 Direct: 760.776.6386 rstendell@cityof palm desert.org -----Original Message----- From: Sharon Walton [mailto:sharon@noblecompanyllc.com] Sent: Friday, April 28, 2017 12:00 PM To: Stendell, Ryan Cc: fceresa1@gmail.com; 'Tom Noble' Subject: Attached Letter Mr. Stendell, Please see attached letter from Tom Noble. If you have any questions, please do not hesitate to contact him directly on his cell 760-221-3559. Thank you. https://mail.google.com/mail/u/0/?ui=2&ik=5a8da8f852&view=pt&msg=15bbadcb9Oe29a9c&search=inbox&siml=15bbadcb9Oe29a9c 112 Gateway Industrial Park at Palm Desert Property Owners' Association, Inc. PO Box 12950 Palm Desert, CA 92255 (760) 770-3100 9 Fax (760) 770-3199 May 3,2017 Mr. Eric Ceja Principal Planner Community Development Department City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 By e-mail: eceia@cityofpalmdesert.org Original by U.S. Mail Re: Draft Marijuana Use and Regulation Ordinance Dear Eric: Thanks for your very prompt reply to my letter of April 28`' to Ryan Stendell. I will appreciate your bringing my comments regarding the need for a specified minimum distance between a cannabis facility and residential property to the attention of the members of the cannabis advisory committee and I hope that they will follow the lead of other jurisdictions in recommending same. I do not understand the concept of treating cannabis operations which may be permitted by the proposed ordinance"...like any other retail establishment....". The proposed ordinance would allow the full spectrum of marijuana related functions including cultivation and manufacture. It is questionable whether such activities are appropriate in Palm Desert's Service Industrial (SI)zone and they certainly do not meet the stated goals of the City's commercial areas. The CC &R's of the Gateway Industrial Park at Palm Desert Property Owners' Association, Inc.,present a separate issue. The restrictions quoted in my April 28`h letter are binding on all users of property in this development,not just owners. Owners of such property should be aware of the CC&Rs but tenants may not be. It would be in no one's interest for a tenant to be granted a CUP for a function which would emit odors in violation of the CC&Rs. Rather than to get into the legal wrangling entailed in the enforcement of CC&Rs it would be much better to be certain that all parties to a potential lease or sale have actual notice of the use restrictions which apply to this development. We will call the attention of all owners within this Mr. Eric Ceja May 3,2017 Page 2 of 2 association to the restrictions set out in the CC&Rs and we think that it would be wise for the City to do likewise. Thank you again for your attention to these concerns. Please let me know if you would like to discuss these issues in person. Also,please advise me of all future meetings on this matter. Sincerely, Gateway Industrial Park at Palm Desert Property Owners' Association, Inc., By: Thomas S.Noble President Cc: Caroline Halcovich Fabio Ceresa 5/17/2017 Gmail-Attached letter ---------- Forwarded message---------- From: Tom Noble <noblecompany760@gmail.com> Date: Fri, May 5, 2017 at 9:34 AM Subject: Re: Attached letter To: eceja@cityofpalmdesert.org Cc: sharon@noblecompanyllc.com, Bob Hargreaves <Robert.Hargreaves@bbklaw.com> Eric, Thanks for the up-date. Sorry to load you down with more questions but will you recommend a specific number of feet between cannabis facilities and residential property?When will the next committee meeting be held? Also, just to be clear, my concern regarding such facilities being in violation of our CC&Rs does not end with a property owner's approval of a tenant's or purchaser's application. It is very possible that an owner could give such approval but that the subject facility would be in violation of the CC&Rs by, as one example, emitting odors once it goes into operation. In such a case the POA would have the right to seek an injunction to stop such odors even if that required shutting down the business. It is obviously in everyone's interest to make all parties fully aware of the CC&R's provisions at the outset instead of having to enforce them with expensive legal action at a later date. Since this is largely a legal question I am copying the city attorney on this message. Thank you again for your attention to these matters. Tom Noble On Thu, May 4, 2017 at 5:12 PM, <eceja@cityofpalmdesert.org> wrote: Thank you for the letter. I will be recommending to the Committee that we prohibit cannabis related uses adjacent to residential properties. In addition, we do not receive or approve conditional use permit applications without property owner authorization. Thanks, Eric Ceja, Principal Planner Community Development Department eceja@cityofpalmdesert.org P: (760) 346-0611 F: (760) 776-6417 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Go c," robbery at marijuana dispensary a All News Maps Shopping Videos More Settings Tools About 212,000 results(0.50 seconds) Armed robbers hit Spring Valley marijuana dispensary-The San... www.sandiegouniontribune.com/news/.../sd-me-pot-robbery-20170607-story.html Jun 7,2017-A Spring Valley marijuana dispensary was robbed late Tuesday,shortly before closing time. Masked men rob marijuana dispensary I fox5sandiego.com fox5sandiego.com/2017/06/07/masked-men-rob-marijuana-dispensary/ Jun 7,2017-Police are looking for several masked men who allegedly robbed a Spring Valley pot shop late Tuesday. Cathedral City medical marijuana dispensary robbed-The Desert Sun www.desertsun.com/story/news/crime—courts/2017/04/27/cathedral.../307190001/ Apr 27,2017-A robbery was reported Wednesday night at No Wait Meds on Ramon Road. Perris men arrested in robbery of marijuana dispensary— Press... www.pe.com/2017/05/12/perris-men-arrested-in-robbery-of-marijuana-dispensary/ May 12,2017-Two Perris men were arrested after sheriff's officials say someone robbed a dispensary of marijuana and later pointed a gun at the victim. Pot dispensary attempted robbery-LA Times www.latimes.com/local/lanow/87503661-132.html Two men who attempted to rob a medical marijuana dispensary in Walnut Park on Tuesday night are In critical condition after the business owner pulled out a... UPDATE:Surveillance photos released of medical marijuana... www.ktnv.com/news/medica l-ma rij uana-dispensary-robbed-at-gunpoint-on-wednesday Jan 18,2017-LAS VEGAS(KTNV)—The Las Vegas Metropolitan Police Department reports that a medical marijuana dispensary was robbed at gunpoint on... Man Fatally Shot in Pot Dispensary Robbery-NBC Southern California www.nbclosangeles.com/news/.../Ma n-Fatally-Shot-in-Pot-Dispensary-Robbery.html Jan 18,2017-A man was shot and killed Wednesday during a robbery at a marijuana dispensary in Mar Vista. Are Weed Dispensary Robberies On The Rise?-News I MERRY JANE https://merryjane.com/news/are-weed-dispensary-robberies-on-the-rise Jun 27,2016-Marijuana dispensaries are frequently being robbed. Las Vegas police name suspects in marijuana dispensary robbery... https://www.reviewjournal.com/.../robberies/las-vegas-police-name-suspects-in-mariju... Jul 30,2017-The Metropolitan Police Department has identified four men they suspect robbed of a marijuana dispensary Saturday in the central valley and... Robberies at Phoenix Medical-Marijuana Dispensaries Show Need for... www.phoenixnewti mes.com/.../robberies-at-phoenix-medical-marijuana-dispensaries-... Apr 11,2017-A spate of recent robberies and thefts at Phoenix-area dispensaries has medical- marijuana representatives talking about the need for improved... Cannabis Legal/Business-Consultation-Dispensaries Ad www.narayantawgroup.com/JD-ColumbiaMBA Challenges/Opportunities.Compliance Issues with Federal/State Laws/Regulations Consultation Cannabis Law Services:Immigration Law,Family Law,Trial Services,Medical Cannabis Law,Litigation Searches related to robbery at marijuana dispensary dispensary robbery san diego dispensary robbery los angeles 1 2 3 4 5 6 7 8 910 Next `r "' `A Harvard Health Publications HARVARD MEDICAL SCHOOL Trusted advice_lor a healthier life Marijuana: Health effects of recreational and medical use N AUGUST 19, 2016, 9:30 AM , UPDATED AUGUST 21, 2016, 6:51 PM Wynne Armand, MD, Contributing Editor Marijuana is widely used, especially in adolescents and young adults. In the US,there are about 20 million users (about 7.5%of people aged 12 or older). Marijuana is a mind-altering(psychoactive) drug. Similar to hemp, it comes from the cannabis plant. The plant's primary drug effects come from the chemical delta-9-tetrahydrocannabinol, or "THC."Marijuana is smoked, "vaped"(inhaling the vapor), or ingested in foods or teas. Over the last few decades, the concentration of THC in the cannabis plant has been increasing. In addition,the plant extracts are more potent. Short-term effects of marijuana Marijuana is often used for its "high," and can make people feel more relaxed, alter the senses, and cause time distortion. It can also impair thinking,judgment, coordination, and memory. In some people, it may lead to paranoia or anxiety. Physical effects may include bloodshot eyes, dry mouth, slurred speech, and increased heart rate. These sensations may last up to four hours after inhaling marijuana smoke, or up to 12 hours if consumed,though performance impairments may last for much longer. Long-term effects of marijuana Smoking marijuana can irritate the lungs and lead to breathing problems like cough, excess mucus, bronchitis, and worsening of conditions like asthma and cystic fibrosis. It is not clear if smoking marijuana is linked to lung cancer. Marijuana use during pregnancy can also harm a baby's brain development. We are learning more about the long-term effects of marijuana, and this leads to even more questions as we realize there is a lot we don't know. What is clear is that some of the long-term effects correspond to heavy use. However, heavy use is difficult to define given the nature and limitations of past studies, the different ways marijuana and its extracts are used, and the shifts in THC concentration in cannabis. The biggest health risks appear to be in those who start using as teenagers or young adults when their brains are still developing. In youths who use heavily, studies have shown deterioration in their learning and cognitive thinking that persists into adulthood, even after they have stopped using marijuana. There also appears to be a link between marijuana use and certain mental illnesses. Though most marijuana users will not develop dependence and addiction, it is more common in teenage users. Medical benefits of marijuana Medical use of marijuana("medical marijuana") is somewhat controversial. In the United States, current FDA-approved medications containing synthetic THC are dronabinol (Marinol capsules, Syndros liquid) and nabilone (Cesamet). These drugs are prescribed as appetite stimulants in AIDS patients and for chemotherapy-related nausea and vomiting. They are sometimes used off- label for similar symptoms in other conditions. An oral spray nabiximols (Sativex) is approved in other countries for treatment of multiple sclerosis muscle spasticity and cancer-related pain not managed by other pain medication, and is undergoing further evaluation in the U.S. Although marijuana can help relieve the symptoms of certain medical conditions, its use is still illegal on a federal level, and because we don't have data from large, long-term, well-designed studies,the FDA continues to have concerns about potential risks versus benefits. Fortunately, studies continue on marijuana, THC, and cannabidiol (a component of marijuana which does not have the mind-altering effects of THC). Early research shows cannabidiol and its derivatives hold potential promise in additional conditions like drug-resistant epilepsy and some psychiatric disorders (e.g., anxiety, substance use disorders, schizophrenia, and psychosis). Some states have passed laws, contrary to federal laws, to allow the use of marijuana for medical conditions. Some states have also made the move to decriminalize marijuana use by adults or have similar measures on upcomingb allots. It is unclear what health impact decriminalization of marijuana would have. The experiences of other states and countries that have made these legal changes were varied and unpredictable. The greatest threat would be an increase in adolescent use. Be cautious if you use marijuana In the meantime, if you do use marijuana products, do not do so before driving or operating other heavy or dangerous equipment, and stop if you are pregnant. Talk to your doctor about the safety of continued use if you have a heart or lung condition, or are concerned that you might have developed an addiction. Avoid products that are packaged as candy or other edibles if there are children in your household who are more susceptible to a toxic overdose. And talk to your kids about the potential hazards of marijuana, because the risks are particularly high in young people. 7/31/2017 Riverside mulls options on legal marijuana businesses—Press Enterprise r e �V V OPINION Riverside mulls options on legal marijuana businesses t _ -y' ��rt✓A. f Karl Mondon/Bay-Area News Group Utopia Farms cultivation production manager Sean Ashman inspects maturing marijuana plants Friday, Dec. 2, 2016, in Santa Cruz County, Calif. By SAL RODRIGUEZ I letters(@pe.com I Press-Enterprise July 30, 2017 at 12:06 am http://www.pe.com/2017/07/30/riverside-mulls-options-on-legal-marijuana-businesses/ 1/6 7/31/2017 Riverside mulls options on legal marijuana businesses—Press Enterprise The Riverside City Council is considering its options with respect to marijuana businesses.With the prospect of a state-regulated market opening up next year, the council ought to be open to the possibility of allowing some to operate legally. Marijuana dispensaries and large-scale cultivation are currently prohibited in the city,including for medicinal purposes, despite most voters supporting marijuana legalization.A majority of Riverside voters backed the Adult Use of Marijuana Act last November legalizing recreational marijuana, although just a year before, nearly 60 percent voted down a local measure which would've permitted medical marijuana dispensaries. The shift in public opinion,the looming reality of legal marijuana across California and the prospect of generating revenues at least make the topic one worth considering. On July 25,the council convened a hearing on the matter,getting feedback from the public and trying to collect information.A moratorium is likely,if only to give the city time to come to a decision on allowing certain businesses to operate. While most seemed supportive of ongoing discussions,there were opponents and those urging caution above all. Cindy Roth, president of the Greater Riverside Chambers of Commerce,took the latter position. Noting Riverside County's reputation for being"the meth capital of the world,"Roth argued the region still suffers from that perception and thus the city should proceed carefully. Considering the disparate reputations marijuana and methamphetamines have, and the reality that most states now have medical or recreational marijuana permitted, such concerns about the reputation of Riverside are probably overstated. The Chamber has been prone to specious argumentation over marijuana, including its argument in 2015 against medical dispensaries that such establishments make it"more difficult to retain businesses, attract new employers and to sustain a growing local economy." As compelling as that sounds,there's no evidence behind it. http://www.pe.com/2017/07/30/riverside-mulls-options-on-legal-marijuana-businesses/ 2/6 7/31/2017 Riverside mulls options on legal marijuana businesses—Press Enterprise There's not even proof that legal,regulated dispensaries negatively impact neighborhoods in which they operate. Researchers from UCLA in 2012 found no evidence of crime impacts in Sacramento due to dispensaries.Similarly,a 2014 paper published in Urban Geography found marijuana centers in Denver"do not appear to have any impact on the urban landscape—and therefore on the health of the communities in which they are located." But why let facts get in the way of a good narrative? Meanwhile, Councilman Chuck Conder asserted himself as the council's drug warrior."Marijuana is called dope for a reason,because it ruins minds and turns people into dopes,"he said. Conder made numerous claims—equating medical marijuana to medical Scotch,telling anecdotes of an old friend named Bob who went from a promising student to a cafeteria server because of marijuana— making clear his disdain. One could only think of former Councilman John Burnard when Conder offered, "When you drink an alcoholic drink, it's not affecting the person next to you." Burnard resigned Tuesday after his arrest for choking two women in what witnesses described as a"drunken,jealous rage"earlier this month. As often as bad things happen under the influence of alcohol,we learned long ago that prohibition just doesn't work.As with alcohol,it's unlikely legalizing marijuana will lead to perfect outcomes. But the alternative is to deal with the combined consequences of the drug,the black market and the long-term costs of criminalization. Contrary to fear-mongerers,the sky hasn't fallen in states and cities with pot businesses and probably won't in Riverside. Sal Rodriguez is and editorial writer and columnist at the Southern California News Group. Tags: Opinion Columns Sal Rodriguez Sal Rodriguez joined the Editorial Board in 2014. He got his start in journalism investigating the abuse of solitary confinement in American prisons and jails with Solitary Watch, and has been published by a variety of publications http://www.pe.com/2017/07/30/riverside-mul Is-options-on-legal-marijuana-businesses/ 3/6 7/31/2017 Riverside mulls options on legal marijuana businesses—Press Enterprise Sal including The Guardian and Mother Jones. He is a graduate of Rodriguez Reed College in Portland, Oregon. joined the Editorial Board in 2014. He got his start in journalism investigating the abuse of solitary confinement in American prisons and jails with Solitary Watch, and has been published by a variety of publications including The Guardian and Mother Jones. He is a graduate of Reed College in Portland, Oregon. Meet the People Enabling Donald Trump By Vanity Fair t ANTI f till The guilty ones that surround President Trump have made a habit of keeping silent instead of looking beyond partisan... VIEW COMMENTb Join the Conversation http://www.pe.com/2017/07/30/riverside-mulls-options-on-legal-marijuana-businesses/ 4/6 7/31/2017 Riverside mulls options on legal marijuana businesses—Press Enterprise We invite you to use our commenting platform to engage in insightful conversations about issues in our community. Although we do not pre- screen comments, we reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable to us, and to disclose any information necessary to satisfy the law, regulation, or government request. We might permanently block any user who abuses these conditions. If you see comments that you find offensive, please use the "Flag as Inappropriate" feature by hovering over the right side of the post, and pulling down on the arrow that appears. Or, contact our editors by emailing moderator@scng.com. http://www.pe.com/2017/07/30/riverside-mulls-options-on-legal-marijuana-businesses/ 5/6 � . I What's the big deal with legal pot? No one knows yet Trevor Ngllgs,USA TODAY Published 12:04 a.m.PT July 31,2017�Updated 8:50 a.m.PT July 31,2017 How legalized marijuana is affecting our society has no clear answers,scientists and public health experts k2l say—mainly because we don't have enough information yet. In Colorado,state-sanctioned sales to any adult have been legal only since Jan. 1,2014.Massachusetts, where voters approved a ballot initiative last year,won't see retail sales until July 2018. Studies have shown both increases and decreases in youth and adult use, unreliable law-enforcement data (Photo:Trevor Hughes,USA about crashes and uncertainty about whether medical marijuana does what its backers claim. TODAY) While marijuana evangelists often deny that the drug could hurt anyone,some drug treatment experts say that when highly concentrated, it can cause psychosis. Marijuana's What's the big deal Across the t legalization fuels with legal pot?No States forgt 1 black market in other one knows yet through un4 states territory Medical benefits Marijuana appears to be an effective treatment for chronic pain, nausea and symptoms of multiple sclerosis,according to a January 2017 report from some of the nation's top doctors and public health experts. Commissioned by the National Academies of Sciences, Engineering and Medicine,the report said"conclusive or substantial"research backs the effectiveness of cannabis for those three conditions. ► Black market: Marijuana smuggling persists despite legalization(/story/news/2017/07/31/507417001/) ►Across the USA: States forge path throuah uncharted territory(/story/news/2017/07/31/511477001/) But the report also warns of dangers: Increased risk of car crashes,lower birth weights and problems with memory and attention. It found strong connections between heavy cannabis use and the development of schizophrenia and other psychoses. A variety of state and federal government agencies helped pay for the report,which included research from medical doctors,mental health practitioners and addiction specialists.Authors repeatedly noted that data on marijuana use is limited and scientists need more information as more and more states legalize medical marijuana. "Conclusive evidence regarding the short-and long-term health effects(harms and benefits)of cannabis use remains elusive.A lack of scientific research has resulted in a lack of information on the health implications of cannabis use,which is a significant public health concern for vulnerable populations such as adolescents and pregnant women,"the report said. Deborah Hasin,an epidemiology professor at Columbia University's Mailman School of Public Health,has performed studies that found the prevalence of marijuana use disorders doubled between 2001 and 2013. "If you increase the prevalence of users,you are going to increase the prevalence of people who have adverse consequences,"she said. 4. L I - ���. Ilk t a A"budtender"at Denver's Medicine Man marijuana store helps customers with their purchase.Experts say they're not sure how widespread access to high-quality marijuana may change American society.(Photo:Trevor Hughes,USA TODAY) Youth use But the data on which Hasin based her most recent study also showed slight drops in youth marijuana use in Colorado in the years following legalization. Voters legalized the drug in 2012, but sales didn't start until about 14 months later. In Colorado,the percentage of teens 12 to 17 who had used marijuana in the previous month dropped from 12.6%in 2012-13 to 11.1%in 2014-15. In the same period,teens'past-year use dropped twice as fast,from 20.8%to 18.8%. ►Alaska: In the last frontier,state's marijuana stores aim for tourists(/story/news/2017/07/31/506947001/) ► California: How police chief, marijuana grower made peace(/story/news/2017/07/31/326339001/) In Washington,which legalized recreational marijuana in 2012, 17%of high school sophomores surveyed in 2016 reported having used marijuana in the previous month,down from 20%in 2010, according to the annual Washington State Healthy Youth Survey. Nationally,7.2%of teens reported using marijuana the previous month in 2014-15,according to the National Survey on Drug Use and Health from that year.The survey is the most recent one available from the federal Substance Abuse and Mental Health Services Administration. Aw rY z ,. 'A cloud of marijuana smoke hangs over the annual 4/20 rally April 20,2017,in Denver.Experts say they have no clear answers on how widespread marijuana legalization will affect our society.(Photo:Trevor Hughes,USA TODAY) Crime and public safety Colorado Attorney General Cynthia Coffman said she believes data collection is lagging everywhere in the marijuana industry. As the top law enforcement officer for the first state to legalize pot,Coffman worries about small towns struggling with the effects of major growing operations and marijuana users moving to big cities without jobs or housing. ► California: Boutique cannabis shop puts the high in high end(/story/news/2017/07/31/381966001/) No. California: This city sees pot shops as key to easing war on drugs inequities(/story/news/2017/07/31/507008001/1 "Has the sky fallen?No it hasn't,but there has been a cultural change,"she said."We've seen it in small towns and big cities. ... "I would be pleased if it didn't have a significant effect on crime,on DUI,on kids. It would make me happy to be wrong,"she said."I live in the world that sees the consequences." Dale Mondary,a police chief in Desert Hot Springs,Calif.—a former Drug Abuse Resistance Education officer now policing California's first city to allow commercial marijuana growing operations—remains deeply concerned about what will happen when people drive high. First,he fears they will cause crashes.And second, because marijuana intoxication has no standard like blood-alcohol content for booze,he fears that his officers will be spending more and more time in courtrooms. National Highway Traffic Safety Administration officials have said they believe drugs are increasingly a factor in fatal crashes though more research is needed. In 2015,about 1 in 5 of more than 31,000 fatal crashes in the U.S.involved at least one driver who tested positive for drugs—up from 12%in 2005. A separate federal study of 11,000 weekend,nighttime drivers found 15.1%tested positive for illegal drugs in 2013 and 2014, up from 12.4%in 2007. Marijuana represented the largest increase: 12.6%tested positive in 2013 and 2014,up from 8.6%in 2007. Mondary also is worried about security at dispensaries and the persistence of the black market. No. California: County officials remain at odds with legal weed(/story/news/2017/07/31/5002640011) ► Colorado: Pot workers face banking hurdles in business.personally(/story/news/2017/07/31/484480001/) "I'm still very,very concerned about the recreational use.And frankly I'm opposed to the recreational use,"he said. But part of his job now is to protect the industry and its customers. "If the city is going to allow it,I need to make sure we keep that product and our community just as absolutely safe as we can get it,"he said. Where marijuana is legal t� United States Legend Adult use Medical use Cannabidiol oil ` ox!co Source:Desert Sun research Map:Robert Hopwood,The Desert Sun Learning from other states Mason Tvert,a spokesman for the pro-legalization Marijuana Policy Project who helped pass the Colorado law, believes concerns about marijuana are overblown and said the vast majority of users consume it responsibly. The increasing acceptance of marijuana legalization reflects the reality that marijuana is far safer than many other widely accepted drugs,from prescription opiates like OxyContin to alcohol, he said. ► District of Columbia: In oolitically charged capital cannabis is cottage industry(/storr//news/2017/07/31/507025001/) ► Kentucky: Pot farmer faces life in prison: he's no criminal in some states(/storynews/investigations/2017/06/29/some-states-pot-farmers-get-free- pass-kentuckv-iohnny-boone-faces-orison/373635001/) "There's more use overall because people are recognizing that marijuana use is not as harmful as they were led to believe,"Tvert said.Many police officers have struggled to accept that voters have chosen to legalize marijuana,and many skeptics'claims have proven false. And the war on drugs has brought innumerable negative consequences across the country, particularly for minority communities, he said. State lawmakers are watching early adopters Colorado,Oregon and Washington,John Hudak of the Brookings Institution said.Some states have sought to preempt disconcerting trends, especially involving kids. In the months after legalization,Colorado saw a jump in the number of children hospitalized for marijuana poisoning.The state later put new packaging and labeling regulations in place. Now states such as Massachusetts,where lawmakers are crafting their own recreational pot rules,are writing those kinds of regulations into the laws before the first marijuana products get sold. The debate is no longer about whether marijuana legalization will expand but what steps state legislators take to manage the risks that can accompany the industry, Hudak said. "The march toward reform is an obvious one,"he said. Contributing:Rosalie Murphy and Kristen Hwang, (Palm Springs, Calif.)Desert Sun;Nathan Bomey, USA TODAY(Istory/money/2016/1O/27/drugged- driving-dui-nhtsa-auto-safety/92678186A. Follow Trevor Hughes on Twitter:Ca TrevorHughes(httos://twitter.com/TrevorHughes) SPENDING ON LEGAL MARIJUANA Projected spending in North America: Adult use 0 Medical use , SOURCE ��,:�,; ji rn Sercient USA Tc_DAY" Other Legal pot in America stories No. Maine: While the marijuana is free,it comes with high delivery fee(/story/news/2017/07/31/506978001/) ► Massachusetts: In city of Puritans chance to buy pot legally moves ahead(/story/news/2017/07/31/506993001/) No. Nevada: A mining town straddles the Wild West,marijuana culture(/stork/news/2017/07/31/103840594/) ► Oregon: Beach weed go hand in hand on Cannabis Coast(/story/news/2017/07/31/468643001/) ► Pennsylvania: Medicinal marijuana converts minister into'pastor for pot'(/story/news/2017/07/31/370726001/) ► Washington: Pot boosts city where timber had been king(/story/news/2017/07/31/496123001/) Fullscreen Read or Share this story:https://usat.ly/2vkwgxm Across the U.S.:A look at legal marijuana AdChciCes State of California Department of Justice REQUEST FOR LIVE SCAN SERVICE BCII 8016 (3/0 7) Applicant Submission ORI: CA0330040 Type of Application: Code assigned by DOJ Job Title or Type of License, Certification or Permit: Agency Address Set Contributing Agency: RSO - Palm Desert 07874 Agency authorized to receive criminal history information Mail Code(five-digit code assigned by DOJ) 73520 Fred Waring Drive Street No. Street or PO Box Contact Name(Mandatory for all school submissions) Palm Desert CA 92260 ( 760) 836-1600 City State Zip Code Cun�lephone No. Name of Applicant: (Please print) Last First MI Alias: Driver's License No: Las Irst Date of Birth: Sex: Male Female Misc. No. BIL- Agency Billing Number Height: Weight: Misc. Number: Home Address: Eye Color: Hair Color: Street No. Street or PO Box Place of Birth: City,State and Zip Code Social Security Number: our Number: OCA No.(Agency Identifying No.) Level of Service: DOJ FBI f resubmission, list Original ATI umber: mployer: (Additional response for agencies specified by statute) Employer Name Street No. Street or PO Box Mail Code(five digit code assigned by DOJ) ity State Zip Code Agency Telephone No.(optional) Live Scan Transaction Completed By: Name of Operator Terminal No. Date Transmitting Agency ATI No. Amount Collected/Billed Transmitted to DOJ Card Printout ORIGINAL—Live Scan Operator; SECOND COPY —Applicant;THIRD COPY(if needed)—Requesting Agency a 4/7/2017 City of Palm Desert City of Palm Desert Cannabis Committee Cannabis Committee Agenda How we Got Here I fow We Cot I-Iere � •Feb.2016-Formation of Cannabis Committee to review"Delivery of Medicinal Cannabis" Summary of Committee's Discussions •Cannabis Committee meetings in March&April 2016 City Council Direction •Cannabis Committee meeting in December 2016 -DRAFT ORDINAN(r:DJ$CCtiS10N ;- •City Council Study Session&Regular Meeting in January 2017 Next Steps •Cannabis Committee meeting in February 2017 •League of CA.Cities,BB&K,APA,BMC,Industry Representative April 7,2017 April 7,2017, City of Palm Desert City of Palm Desert Cannabis Committee Cannabis Committee Summary of Committee's Discussion Municipal Code Review •Review of AUMA and MMR SA •Zoning Ordinance is appropriate to address Land Use •Personal Use •19 Licensing Types -cultivation,manufacture,testing,dispensary,distributor,transportation •Potential other Code Amendments to; •Business,Tax,Licensing and Regulation-Title 5-Business Regulations •Cannabis Committee meeting in February 2017 •Health&Safety-Chapter 8.32-"Regulations and Prohibitions of Smoking" •Separate Personal vs.Commercial •Identify Appropriate Zoning Districts •Administration and Personnel-Title 2 •Establish CUP process •Identify Appropriate Regulations/Limitations April 7,2017 April 7,2017 1 4/7/2017 City of Palm Desert City of Palm Desert Cannabis Committee Cannabis Committee DRAFT ORDINANCE DISCUSSION DRAFT ORDINANCE DISCUSSION Standard Formatting consistent with PDMC A.Purpose and Intent A Purpose and Intent B.Definitions B.Definitions -"Commercial Marijuana Business" -"Cultivation' C.Permit Required and Exemptions -"Distribution" -"Licensee" D.Prohibited Activity -"Dispensary" -"Manufacturer" E.Personal Use and Cultivation -Missing"Testing" -Others??? F.Commercial Marijuana Businesses G./H.PeoaRies and Revocations April 7,2017 April 7,2017 City of Palm Desert City of Palm Desert Cannabis Committee Cannabis Committee DRAFT ORDINANCE DISCUSSION DRAFT ORDINANCE DISCUSSION E.Personal Use and Cultivation C.Permit Required and Exemptions 1.Personal Use -All commercial business require a CUP -Must be 21 No building permits issued until proof of State issued License -No special permitting required at"Private Residence" -Exempts: -Smoking prohibited in public view and in accordance with City's Personal Use and Cultivation Smoking Regulations -Primary Caregivers 2.Personal Cultivation D.Prohibited Activity -6 plant Limit Property owners can prohibit renters -Cannot operate without CUP,Business License,and State License -Indoor or outdoor permitted -Use of Butane,CO2 or other fueling sources for Personal Cultivation -Outdoor in rear and side yard only -Activities prohibited under MMRSA and AUMA -Requires 6-foot high block wall for screening -Plants kept below height of wall -Building permit requirements April 7,2017 April 7,2017 2 4/7/2017 City of Palm Desert City of Palm Desert Cannabis Committee jgft, Cannabis Committee DRAFT ORDINANCE DISCUSSION Table 25.16-1.Use Matrix for Commercial and Industrial Districts Com cialaMustrial Disbkt Special Use F.Commercial Marijuana Businesses ce•cooma u. Le mi Prons�ons OP C 1 PC-1 u—-2 PC-3 PC�1 Sl PI 1.Requires Permits—CUP,Business License,State License Retail N C C C C I C N N 25.34.120 2.Locations—Updated Table of Permitted Use -Prohibits commercial operations within 600 feet of school/childcare Marijuana Cultivation N N N N N N C C 2534.120 and properties abutting parks Men,— N N N N N N C C 2534.120 3.Separation Requirements Mari;uana Manufacturing N N N N N N C C 25.34.120 500 feet from other approved operators alari,uaoa Teshng C N N N N N C C 2534,120 -1,000 feet separations between Cultivators April 7,2017 City of Palm Desert City of Palm Desert Cannabis Committee Cannabis Committee DRAFT ORDINANCE DISCUSSION DRAFT ORDINANCE DISCUSSION •Commercial Marijuana Businesses G.Penalties for Violations •Needs Disc—,.." 4.Special Requirements -Background Checks -Open Premise Agreements H.Grounds for Denial,Revocation or Suspension -Cultivators submit Energy and Water requirements(?) -Security Plans -Banking Plans 1?I -Indemnification Agreement iL April 7,2017 April 7,2017 3 CANNABIS APPEALS COMMITTEE RESOLUTION NO. 1 A RESOLUTION BY THE CANNABIS APPEALS COMMITTEE OF THE CITY OF PALM DESERT, CALIFORNIA, CONFIRMING AND APPROVING FINAL APPLICATION SCORES FOR CANNABIS APPLICATIONS WHEREAS, pursuant to the authority granted to the City of Palm Desert("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, adoption and enforcement of comprehensive zoning regulation and other land use regulations lies within the City's police powers; and WHEREAS, California has adopted, through a ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) to regulate the adult and commercial use of cannabis, pursuant to local authority preserved in the AUMA; and WHEREAS, the City Council of the City of Palm Desert, at its regularly scheduled meeting of October 26, 2017, did adopt Ordinance 1329 to establish comprehensive land use and business regulations for cannabis businesses; and WHEREAS, the City Council restricted the number of cannabis businesses operating in the City to no more than six(6) retail/dispensary uses and no more than one (1) retail/dispensary on El Paseo, and further limited other cannabis uses by requiring a 1,500-foot separation requirement between cannabis businesses; and WHEREAS, the City Council of the City of Palm Desert, at their regularly scheduled meeting of October 26, 2017, did adopt Resolution 2017-74, to establish selection criteria to be used in the evaluation, scoring, and ranking of potential cannabis applications; and WHEREAS, the selection criteria focused on five (5) distinct categories of concern including location and neighborhood compatibility, security, experience and qualifications, building fagade and improvements, and community benefits; and WHEREAS, during the week of December 11, 2017, the City's Department of Community Development received thirty-three (33) Conditional Use Permits and Cannabis Regulatory Permit applications for cannabis businesses to be evaluated; and WHEREAS, "incompleteness letters" were sent to cannabis applicants on January 18, 2018, informing all applicants of their application deficiencies in supplying information listed in the Conditional Use Permit and Cannabis Regulatory Permit, and informed applicants that they had until February 9, 2018, to supply missing information and make additional monetary deposits with the City; and WHEREAS, four (4) cannabis applicants informed staff that they would no longer pursue cannabis permits with the City; and CANNABIS APPEALS COMMITTEE RESOLUTION NO. 1 WHEREAS, on February 12, 2018, twenty-nine (29) cannabis applications were transmitted to the selection criteria review committee with direction on how to evaluate and score the applications; and WHEREAS, the selection criteria review committee consists of four (4) City staff members including the: Director of Building and Safety, Director of Economic Development, Code Compliance Supervisor, and Principal Planner; each selected for their respective expertise in odor mitigation, business planning, land use, and security; and WHEREAS, the selection criteria review committee met on March 7, 2018, to discuss the review process, and determined that subsequent meetings should be scheduled for the group to share information in their individual review of the applications and to agree on a consensus score for each cannabis application; and WHEREAS, the selection criteria review committee met on April 6, 2018, April 10, 2018, and April 12, 2018, in a private conference room, to rank each individual cannabis application in accordance with the selection criteria established by the City Council; and WHEREAS, final scores of each individual application were ranked from high to low, with the highest ranking application plotted on a map to determine which applications within 1,500 feet of the highest ranking application were eliminated; and WHEREAS, the map plotting exercise continued until all available permits were identified and no additional spots for cannabis applicants were available; and WHEREAS, the map, showing awarded cannabis locations, a list of comprehensive final scores, and the identified winning cannabis applications were posted on the City's website and emailed to each cannabis applicant on April 20, 2018; and WHEREAS, cannabis applicants that were not selected for a cannabis permit were informed that they had until May 4, 2018, to inform the City of their intent to appeal their score and final ranking; and WHEREAS, upon the close of the appeal period, the City received a total of eight (8) appeals contesting the final score and rankings of their applications; and WHEREAS, on May 31, 2018, the Cannabis Appeals Committee, consisting of the City Manager, Director of Finance, and Director of Community Development, did review and hear from seven (7) appellants contesting their application score and ranking; and WHEREAS, the Cannabis Appeals Committee continued the hearing for one (1) applicant, Ceres Valley, and scheduled additional hearings on July 18 and August 24; and WHEREAS, at the conclusion of the appeal hearings the Cannabis Appeals Committee did make the following findings in support of the application scoring and rankings: 2 CANNABIS APPEALS COMMITTEE RESOLUTION NO. 1 SECTION 1. Findings. The Cannabis Appeals Committee of the City of Palm Desert hereby finds that: 1. PSA Organica: PSA Organica, the cannabis applicant and appellant, discussed their experience and cannabis education focus, and requested that the 1,500-foot separation requirement be eliminated; however, they did not present any material information related to their application. The committee affirmed the score the applicant received from the selection criteria review committee and noted that changing the 1,500-foot separation requirement is beyond the Appeals Committee purview. Consequently, the appeal is DENIED. 2. MedMen: MedMen, the cannabis applicant and appellant, discussed the information contained in their application and advocated that their application should receive additional points due to the proposed changes to the building facade, their professionally prepared security plan and odor control plan, and community benefits. The appeals committee in the review of the information contained in the application, and hearing from staff on how points were applied across all applications, awarded the appellant additional points for the following: • 1 additional point to the applicant's odor control score, based on the number of odor control measures provided in the application and to be consistent with scoring of all other applications. • 1 additional point to the applicant's proposed building fapade changes, based on the architectural quality of the existing building and the minor building fagade improvements proposed by the applicant. • 2 additional points for the applicant's community benefits scores, based on the partnership and outreach to local non-profits as listed in the application. The additional awarded points increased the applicant's final selection criteria score from 70 points to 74 points; however, the additional points were not sufficient to change the outcome of the applicant's ranking; consequently, the appeal is APPROVED in part and REJECTED in part, with MedMen receiving a total score of 74. 3. Merry Jane: Merry Jane, the cannabis applicant and appellant, discussed the information contained in their application. The appellant questioned the scoring criteria used and questioned why they were awarded 0 points under the "sensitive uses" criteria. Staff explained that religious facilities, which are considered sensitive uses in the scoring criteria, are located within 500 feet of the proposed location and, as such, 0 points were awarded under this criterion. The appeals committee upheld staff's scoring of that criteria, finding that religious facilities were indeed within 500 feet of the location and that the scoring used in this category was consistently applied across all applications. The appellant also contested the score they received for their security plan and building fapade. The appeals committee, in reviewing the information contained in the application, awarded the appellant additional points for the following: 3 CANNABIS APPEALS COMMITTEE RESOLUTION NO. 1 • 1 additional point for the applicant's security plan, based on evidence in the application where an on-site security guard will be on premises during hours of operation and that staff explained that other applicants received similar scores for having on-site security. • 1 additional point for the application's existing building facade, based on the architectural quality of the existing building and the minor building facade improvements proposed by the applicant. The additional awarded points increased the applicant's final selection criteria score from 72 points to 74 points; however, the additional points were not sufficient to change the outcome of the applicant's ranking; consequently, the appeal is APPROVED in part and REJECTED in part, with Merry Jane receiving a total score of 74 points. 4. The Leaf The Leaf, cannabis applicant and appellant, discussed the information contained in their application and challenged the score received for their security plan, qualifications of professionals, building and facade improvements, and community benefits. In considering the information contained in the application, and hearing from staff on how this criterion was scored across all applications, the appeals committee upheld the 81 points awarded to the applicant. Consequently, the appeal is REJECTED; however, the applicant did receive a final score of 81, making it the highest scoring application for review and the one application selected for a dispensary use on El Paseo. 5. The Greenery Room The Greenery Room, the cannabis applicant and appellant, discussed the information contained in their application and challenged the scores received for their security plan, odor control plan, monitoring of the building's exterior, and building facade improvements. The appeals committee, hearing from staff on how these criteria were scored across all applications, and in hearing the appellant's testimony and reviewing the information contained in the application, upheld the point total awarded to the application and did not award additional points to the applicant. Consequently,the appeal is REJECTED,with The Greenery Room maintaining a total score of 65 points. 6. P&S Ventures P&S Ventures, the cannabis applicant and appellant, discussed the information contained in their application and challenged the scores received for their security plan, odor control plan, business plan, monitoring of the building's exterior, qualifications of professionals, and their community benefits. The appeals committee, in reviewing the information contained in the application, and hearing from staff on how these criteria were scored across all applications, awarded the appellant additional points for the following: • 2 additional points for the applicant's monitoring of the building's exterior and providing on-site security, as other applications were awarded similar scores based on providing on-site security and monitoring of the building's exterior. 4 CANNABIS APPEALS COMMITTEE RESOLUTION NO. 1 • 1 additional point for the applicant's description of overall community benefits, as other applicants were awarded similar scores for identifying and supporting local non-profits. The additional awarded points increased the applicant's final selection criteria score from 65 points to 68 points; increasing their ranking above another awarded application. However, the awarded application, West Coast Cannabis Club, also filed an appeal and based on the changes below, the appeal is APPROVED in part and REJECTED in part, with P&S Ventures receiving a total score of 68. 7. West Coast Cannabis Club West Coast Cannabis Club, the cannabis applicant and appellant, discussed the information contained in their application and challenged the scores received for their building fagade improvements, monitoring of the building's exterior, their submitted security plan, odor control plan, and community benefits. The appeals committee, in reviewing the information contained in the application, and hearing from staff on how scoring of these criteria were applied across all applications, awarded the appellant additional points for the following: • 1 additional point for monitoring of the building's exterior as the applicant will have on- site security to monitor the parking areas around the building. • 1 additional point for odor control as the applicant did identify at least three (3) odor control methods for their building and other applications received similar scores for identifying the same odor control methods. • 1 additional point for the security plan as the applicant will have on-site security to monitor the stores interior. • 1 additional point for community benefits as the applicant did identify working with local non-profits and other applicants received similar scores for similar proposals. Appeal APPROVED in part and REJECTED in part. The additional awarded points increased the applicant's final selection criteria score from 66 points to 70 points and the applicant maintained their position as the higher ranked application within this portion of the City. 8. Ceres Valley Ceres Valley, the cannabis applicant and appellant, discussed the information contained in their application and challenged the scores received for their odor control plan, their security plan, qualifications of their professional, building interior improvements, and community benefits. The appeals committee, in reviewing the information contained in the application, and hearing from staff on how scoring of these criteria were applied across all applications, awarded the appellant additional points for the following: • 1 point for the security plan as the applicant identified that they were providing on- site security personnel and other applications were provided the same or a similar score • 1 additional point for the applicant's demonstrated business experience based on their ownership of an existing business in the Los Angeles region and based on 5 CANNABIS APPEALS COMMITTEE RESOLUTION NO. 1 staff's input that other applicants were provided additional points for demonstrating similar business experience. The additional awarded points increased the applicant's final selection criteria score from 63 points to 65 points; however, the additional points were not sufficient to change the outcome of the applicant's ranking; consequently, the appeal is APPROVED in part and REJECTED in part, with Ceres Valley receiving a total score of 65 points. SECTION 2: Affirmation The Cannabis Appeals Committee of the City of Palm Desert has completed its review of cannabis application appeals and affirms the final scores of appealed applications as indicated in Section 1 of this Resolution. As the final appeal authority on the selection review criteria, these scores are considered final and not subject to additional review. PASSED, APPROVED,AND ADOPTED by the Cannabis Appeals Committee of the City of Palm Desert, California, at its scheduled meeting held on the 18t�of October 2018 by the following vote, to wit: AYES: Ryan Stendell, Janet Moore, Lauri Aylaian NOES: ABSENT: ABSTAIN: LAURI AYLAIAN, CH P �N ATTEST: a ERIC CEJA, CRE`tARY PALM DESERT RABIS APPEALS COMMITTEE 6 BACKGROUND P INVESTIGATION E L PROGRAM MS E a _ Prepared For: Eric Ceja Principal Planner City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 Prepared By: BARRISTER PROFESSIONAL SERVICES, LLC PALM November 21, 2017 DESERT This overview contains confidential and proprietary non-public information regarding The City of Palm Desert("Palm Desert")and Barrister Professional Services,LLC(`Barrister").As such,neither this proposal nor any part thereof shall be disclosed to third parties without prior written authorization from The City of Palm Desert and Barrister. TABLE OF CONTENTS EXECUTIVE SUMMARY I BARRISTER'S UNDERSTANDING 2 BARRISTER'S APPROACH 3 THE INVESTIGATIVE PROCESS 4 WHY BARRISTER 5 FLEXIBLE FEE SCHEDULES 6 BENEFITS OF BARRISTER 7 INVOICING 8 CONCLUSION 9 EXECUTIVE SUMMARY Barrister Professional Services, LLC ("Barrister") is pleased to present this Background Investigation Proposal to the City of Palm Desert ("Palm Desert"). Barrister provides integrated investigative services, technical consulting, and risk management services to both the public and private sector, insurance and legal community. We are licensed by the State of California as a Private Investigation company and are bonded and insured as necessary.Our program is designed to encompass the full spectrum of Palm Desert's needs in providing Background Investigations. We work closely with the law enforcement community, and various City Attorneys throughout the state. We believe this overview provides a general framework for addressing Palm Desert's Background Investigation requirements, while offering the flexibility required for modification as these requirements change. Our capability, combined with our experience in the investigative industry, equips Barrister with an in-depth understanding of your current investigative prerequisites and the importance of providing you with a pricing structure that allows for timely, cost contained Background Investigations. We are committed to a partnership with you and welcome the opportunity to further utilize our resources to assist you in meeting Palm Desert's objectives. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 1 BARRISTER'S UNDERSTANDING OF THE CITY OF PALM DESERT'S REQUIREMENTS The City of Palm Desert is seeking a flexible cost-effective method of initiating and maintaining potentially both short and long-term Background Investigations. Reasonable background investigation's that are done in a timely manner result in a prompt evaluation of the applicant(s)history.This leads to the resolving of potential issues and the prevention of costly lawsuits, liability and damages, all of which are necessary for effective cost control of claims and litigation. We will be on-site at Palm Desert City Hall within two(2) hours after notification to begin the Background Investigation, evaluate the Applicant and report to Palm Desert our initial findings. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 2 BARRISTER'S APPROACH TO ADDRESSING THE CITY OF PALM DESERT'S REQUIREMENTS Barrister's continued commitment to identify and implement new methods of providing high quality, value-added services led to the development of our Multi Phase Background Investigation Program. As the name implies, The Background Investigation Program encompasses all of Barrister's resources and standards of excellence in investigations into a cost-contained program under Palm Desert's control. This program has been designed to fulfill the City of Palm Desert's requirements. The Background Investigation Program that Barrister personnel will perform are those typically provided by a police officer,deputy sheriff,or licensed private investigator.These activities generally include: file set-up; acknowledging and responding to inquiries and daily investigative related mail/e-mail, telephone inquiries from, and to, involved parties, witnesses, various public and private entities and Applicant's; interviewing and maintaining daily diaries; reviewing and analyzing documentation; interfacing with and assisting outside legal counsel and other service providers; recommending courses of action; providing reports and otherwise keeping the City of Palm Desert advised on investigation status on an as requested basis. Although we envision our services will involve providing mostly Background Investigation Activities, should the need arise, Barrister will provide additional services to the City of Palm Desert,including technical investigative consulting, litigation support and expert testimony services. Barrister is structured to be a single source provider and is capable of fulfilling all of Palm Desert's investigative requirements. Although we can provide detailed descriptions of all Barrister services, brief definitions of these types of services are set forth below. 1. Investigation and Consulting Services Barrister has a solid framework of Investigators and Consultants to assist the City of Palm Desert in every facet of the most technical and complex Background Investigation. All possess the most advanced and up-to-date training in every facet of investigations. We utilize in-house bilingual personnel who speak a combined total of five different languages, thus providing efficient and cost-effective investigations. Barrister Professional Services,LLC Confidential&Proprietary November 21,2�017 Page 3 2. Technical Consulting Services These services include providing technical expertise that a typical private investigator does not possess. Generally, these services are provided by attorneys, certified public accountants, engineers, system analysts, etc. Technical Consulting activities generally include, but are not limited to, participating in site visits, analyzing documentation, or other Agreements for legal counsel review, providing investigation monitoring and/or management, etc. 3. Litigation Support/Expert Testimony Services These services include those required to assist legal counsel during litigation. Although every effort is made to avoid lengthy court battles, we provide 24 hours, 7-day assistance to counsel in all phases of litigation. These services typically include civil investigations, deposition and expert testimony, background checks, legal document retrieval, research (Consolidated Courts, etc.) and video/photo surveillance. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 4 THE INVESTIGATIVE PROCESS The Background Investigation Program will be administered in an abbreviated manner consistent with CA P.O.S.T Standards/Palm Desert's policies and procedures. Barrister's Proposal with Palm Desert provides specific investigation guidelines which have been established in a Daily Investigation and Consulting outline specifically designed for Palm Desert. Set forth below is the proposed outline of Palm Desert's and Barrister's Daily Investigative Activities. I. Investigation Procedure A. Receipt, Routing, and Assignment for Investigation 1. Procedure a) The City of Palm Desert-Barrister, "Secure Database Portal" b) Document/Information Transfer, "Call-In Report" c) Region-Coachella Valley/Location/Assignment B. Communication between the City of Palm Desert and Barrister 1. The City of Palm Desert a) City Attorney, City Personnel 2. Barrister a) Contact Personnel, Background Investigator(s) C. Investigative Services 1. Contact and initiate Background Investigation within 24 hour(s) a) Community Development Department, "Dispensary Conditional Use Permit" b) Live Scan, City of Palm Desert (1) Convictions, (Yes/No) (2) Contacts with Law Enforcement(Yes/No) c) Contact with Applicant (1) Introduction by Background Investigator d) Documentation (1) Valid CA Driver's License/Identification Card (Color Photocopy) (2) Still Photograph of Applicant (3) 20 year"Residential History" (4) Interviews/Statements (5) Public Record Searches (6) Parole Status (7) Probation Status (8) Written Report e) Report Distribution (1) City Attorney's Office Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 5 (2) City of Palm Desert (3) Others 2. Investigation Action a) Activity Records (1) Investigative File (a) Set-Up (b) Communication Records b) Document Templates (1) (TO INCLUDE ALL CITY OF PALM DESERT OR BARRISTER MODEL DOCUMENTS) 3. Travel and Expense Authorization a) Policy b) Procedure 4. Use of Investigators a) Policy b) Services c) Preferred Service Provider List d) Engagement Authorization e) Establishing Scope of Work and Budgets, ($90.00/Hour, approximately 20 to 30 hours (+-),per Background Investigation) f) Monitoring and Status Reporting g) Investigator Invoicing Requirements 5. Use of Consultants a) Policy b) Services c) Preferred Service Provider List d) Engagement Authorization e) Establishing Scope of Work and Budgets f) Monitoring and Status Reporting g) Consultant Invoicing Requirements 6. Payment of Service Providers a) Requests II. Litigation A. Notification by the City of Palm Desert B. Handling 1. Policy Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 6 WHY BARRISTER • Company Profile Barrister is an independent investigation and consulting company. We are licensed by the State of California as Private Investigators under License Number PI18170. We are Bonded and Insured. We are registered to transact business in the states of Arizona, California,Nevada and Washington D.C. We specialize in sensitive investigations and are a leading provider of confidential investigative resources, client support, consulting, and risk management services. We are experts in developing and cost effectively implementing "hand-crafted" investigative programs. Barrister personnel, since 1990,have handled and are currently handling for various Municipalities and the legal arena, some of the most sensitive investigations. We have evaluated and processed these investigations from Ground Level through Corporate Boardroom. Barrister is committed to service and has forged a solid background of experience and expertise. We are the preferred provider for the Hartford Insurance Company, The Travelers Companies, and Lloyds of London. We have the appropriate Insurance covering the efforts of Barrister and maintain a Five Million Dollar General Liability Insurance Policy. Barrister is an independent investigation and consulting company with a long-standing relationship with its Clients. These relationships have prevented conflicts of interest during information receipt and dissemination. Our future business is dependent upon our reputation for the proper and cost-effective handling of investigations. • Location Barrister is headquartered in Redlands California, California, 15 minutes west of San Bernardino International Airport with additional offices in Los Angeles,California.We are conveniently located in the heart of the Inland Empire and have been there for 25 years. Our strategic location enables our personnel to respond quickly to the needs of the City of Palm Desert. By eliminating the need to utilize various regional firms and incur the cost of a continuing learning curve, Barrister's presence in the Inland Empire will provide significant cost savings to the City of Palm Desert. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 7 • Commitment to Quality We at Barrister believe that quality can only be measured by the satisfaction derived by our clients over an extended period of time. Our goal is to consistently deliver to our clients the highest quality service at an optimum cost. To this end,our management principles, focus, and corporate culture encourage and emphasize reliability, innovation,and teamwork.We realize that both a prompt and high-quality investigation results in an accurate evaluation of each Background Investigation assigned to Barrister. We recognize that to achieve our goals,all Barrister employees must extend a concerted effort, objectively focused, and efficiently delivered. • Staff Expertise It is Barrister's personnel that allow the company to enjoy a wide reputation for expertise, consistent attention to cost-control, and unparalleled service to our clients. Barrister's reputation in the industry allows us to attract and retain the most qualified personnel in all facets of the investigative industry. Our professionals are all retired Law Enforcement from the rank of Detective through Command Staff. All have handled sensitive investigations and have experience in all areas of the legal arena. • Stability Our stability distinguishes us from our competition. Our growth has been steady and certain, achieved almost exclusively by referral and increased business with existing clients. We have worked steadily to develop the required business foundation composed of people,facilities and a widespread client base.We have developed related services, and have committed ourselves to a high level of training in order to continue our uninterrupted growth. We have developed our own facilities in communications, and have attracted the caliber of people with the professional commitment to maintain ever-higher standards for the company. Often an investigation can take years from first involvement to resolution. We look forward to continued acceleration to meet the expanding needs of our clients and to providing continued quality and cost-effective services. Our competition comes and goes, when you engage Barrister you are assured that we will be available to assist to the end. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 8 • Business Responsibility Barrister is licensed, bonded and insured. Barrister maintains Five Million Dollars in insurance coverage which we believe is necessary to protect its clients. • Barrister Information Technology Barrister's ongoing investment in the most current technology reflects our belief that information, captured accurately and communicated consistently, is a cost savings and critical competitive advantage for both the City of Palm Desert and for Barrister. Barrister has established the standard for creating communication links between organizations. 1. E-mail: It is the basic premise of every Barrister engagement. The City of Palm Desert will be kept informed of our progress with real time updates. Barrister's thorough system of reporting goes hand-in-hand with the actions of every professional in the company. Each Barrister employee has his or her own personal e-mail address, notebook computer and tablet. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 9 • Education and Training Programs Barrister has long understood the need and value of competently trained personnel to provide cost effective services to our clients while managing within the regulatory and technical aspects of our industry. Barrister provides formal instruction and training to all Barrister personnel. This contributes to proficiency in their present positions and provides a basis for future growth within the company. In terms of education and training,we know we are in the forefront of our industry. Training is accomplished by a variety of methods. In-house, we have developed an Investigative Training Program staged in a classroom environment with quizzes and examinations. Additionally, intensive on-the-job instruction and outside seminars emphasizing investigative and administrative content are used as training tools. All phases of our business are covered to make certain our employees not only receive specialized training, but also general knowledge. Training of our personnel is monitored closely by management. In addition to the training of Barrister personnel, our Investigative Training Program is highly acclaimed and is in growing demand by our clients. We also conduct specially designed courses on our client's premises, for our client's operational personnel. It is not unusual for us to design and present special seminars at the request of a client several times each year to ensure knowledge on the ever-changing trends and practices in our industry. This same training follows us to the Street Level leading to a true "picture" of the Applicant. This "picture" can effectively be measured in savings realized at the"Defense Costs" level. Our commitment to education and training is resolute. We believe there is nothing that contributes more to our quality of service and adds value to our clients than our most important asset—our people. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 10 FLEXIBLE FEE SCHEDULES Barrister's Background Investigation fee schedules are flexible and designed to meet the City of Palm Desert preferences. There are many different types of fee structures available and we would welcome information from you regarding your preference.We have included an hourly rate schedule. We encourage you to discuss preferred types of fee schedules with us to ensure that all requirements are being met. Having Palm Desert's specific information, has enabled Barrister to set forth below a Background Investigation Control Program fee schedule based upon the following investigative file information, correspondence with the City of Palm Desert. PREFERRED CLIENT FEE SCHEDULE FOR HANDLING BACKGROUND INVESTIGATIONS) A preferred client hourly rate schedule has been developed for the City of Palm Desert for providing Background Investigation(s) and the endeavors by Barrister's Investigative personnel. Barrister will provide these services to Palm Desert at the Preferred Client Fee Schedules set forth below. If additional services are requested by Palm Desert beyond handling Background Investigation(s),Barrister will provide these services to Palm Desert at the Preferred Client Fee Schedules should those services become necessary. 1. All rates are based on Specialty and Level of Expertise. Barrister will utilize the lowest priced qualified person to provide required services. • Background Investigator $90.00/hour • Investigator(other) $125.00/hour • Consultant $100.00/hour • Forensic Accountant $80-125.00/hour • Forensic Computer Examiner $65-150.00/hour • Graphic Artist $40-75.00/hour • Clerical $30-35.00/hour Expenses shall be invoiced at cost. Travel and out of pocket expenses such as facsimiles, telephone, postage, copies, couriers, transportation and meals for Investigator(s) working in the field are invoiced at cost. Mileage is billed at the current IRS approved rate. For overnight stays,the U.S. Government applied Per Diem rate is charged. Expert testimony at trial, arbitration and/or deposition will be charged at the above individual rates with a pre-determined surcharge. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 11 BENEFITS OF BARRISTER'S BACKGROUND INVESTIGATION(S) • Low Cost Our expertise in sensitive and confidential Background Investigation's, results in an overall quality, low cost service. Barrister's commitment to "quality over quantity" in the investigative community has necessitated significant investments in automation, personnel and facilities; generating operating efficiencies and economies of scale that are passed on to Palm Desert. • Flexible and Consideration Given to the Investigative Process The Background Investigation Program developed for the City of Palm Desert is specifically designed to offer flexibility so that Palm Desert can select which services are required. Barrister's personnel are experts in developing and implementing cost effective programs. Our personnel understand the complexities of the investigative process and how it differs from resolving matters for a Municipality with ongoing investigative operations. • Single Source of Contact Barrister's Background Investigation services will provide the City of Palm Desert with a single source of contact for all its background investigation requirements. Palm Desert will have one source to turn to in fulfilling all of its needs. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 12 INVOICING • Hourly Fee Invoices are issued monthly by Applicant name and file number with terms of 30 days. Invoices indicate the person who performed the activity, date of activity, time spent on activity,description of activity,and amount for activity.Time is invoiced in 1 Oths of hours.Barrister can modify the process and format of invoicing to meet any of Palm Desert's special requirements. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 13 CONCLUSION Thank you for the opportunity to provide you with this overview for your Background Investigation requirements. We are excited about working along-side you. We are confident that Barrister's Background Investigations will benefit the City of Palm Desert in a vast number of areas. Barrister Professional Services,LLC Confidential&Proprietary November 21,2017 Page 14 COACHELLA VALLEY WIDE MARIJUANA REPORT INFORMATION ON CULTIVATION 11/02/16 City of Desert Hot Springs: • Information under Community Development tab • MMJ Ordinance 552 • 2016 Cultivation Orientation Packet (only printed cover sheet, 75 page document) City of Palm Springs: • Planning Commission Staff Report April 8, 2015 • Ordinance 1845 (page 2 information on cultivation) Cathedral City: • Information under MY Government tab • Medical Cannabis Administration packet (page 15/16 information on cultivation) • Ordinance 772, 773, 774, 775, 777 City of Rancho Mirage: • Ordinance 1004 (12/2010) prohibits cultivation City of Indio: • HOC Committee • No ordinances found or applications • 47 page report (printed first 4 pages) City of La Quinta: • No information on cultivation, dispensaries prohibited PREPARED BY: MELANIE PLASSE 11/2/2016 City of Desert Hot Springs-Medical Marijuana Information Press Reletese j AlA1=Ps j,lob Ogyxa`tunitir;s About Services City Govt City Depts F,c:ononlic Dev Calendar Contact:Us Medical Marijuana Information City Depts » ................ • State Laws Regardi ng X1 ed ica I Marijuana • Medical MarijuanaDistributionTax Cifr :allafe� • CtvClerk • Medical Marijuana('ultivation Facilities Community Development • Medical Marijuana Cultivation Tax o Medical Marijuana Information ■ X'ledical itilariluana Facility • Pending Legislation Permit Mxllicatioms • Medical Marijuana Facility Permit Applications ■ St ite Laws Regarding Medical Marijuana • Medical Marijuana Map ■ Medical Marijuana Dist butior: 'far Note: Medical Marijuana Witivation The City will no longer conduct Orientation Sessions for prospective Cultivation Facilities Applicants.Interested parties can view a recorded session and download information using ■ Medical MaTtivana Cultltatlon the following links: Tax ■ Pending Legislation: • Cultivation Orientation Video o C1'Llnk o l3t,ilding • iYiltid�Itiont)x`isnta.tionl'as:kct:PtB1Es o C•xleColllplianceandComntullity At a special election held on November 4,2014,the voters of the City of Desert Preservation o C;arari�%Yxn•tl Sale Application Hot Springs passed and adopted the following taxes in connection with the City's Medical Marijuana Program: 0 1'lar:ni �g, G T llb ic Work" Medical Marijuana Cultivation Tax(Measure HH) Fi.Iarice C Administl.=.*k)n An annual tax of twenty-five dollars($25.00)per square foot for the first 3,000 square feet, 1:uman Reso:Ilaces and then ten dollars($io.00)per square foot for the remaining spaced utilized in folic'Dept connection with the cultivation of medical marijuana. RFPA%Successor A,<;enc c Medical Marijuana Tax(Measure II) A monthly 10%tax on the proceeds from the sale/provision of medical marijuana. United States Department of Justice Memorandum Guidance Regarding Marijuana Enforcement United States Department of Justice Memorandum Investigations and Prosecutions in States Authorizing the Medical Use of Marijuana City of Desert Hot Springs•65-950 Pierson Blvd. Desert Hot Springs,CA92240 City Hall:(760)329-6411 j Police Dept:(76o)329-2904 I Fire Dept:(760)329-5123 webmaster@cityofdhs.org hftp://www.cityofdhs.org/Medicai_Marijuana_Information 1/1 11/2/2016 City of Desert Hot Springs-Medical Marijuana Cultivation Facilities Press Ito ease I_'Pa Job QpP«rtuniti '0 S t y \ w; About Services City Govt City Depts Economic Dev Calendar Contact.Us Medical Marijuana Cultivation Facilities City Deets >> • ;A31Z1,6 t3r€linaiaee ,-,4 • MMJ Ordinance 553 Cil'c Manages • M IJ 0rdinance 585(.Arnends D HSN C:C hapter 17.180"Al ed J cal C tv.Merl: Marijuana Facilities Location"(Adopted SepteMber 20,2o16) C'anYYmzri:y DrvelopmeY:t o lVedicai Marijuana InformatHM The City of Desert Hot Springs permits the operation of Medical Marijuana Cultivation . Medical Mariivana Facility Facilities which cultivate more than 99 mature flowering plants only in those zoning > ns Districts designated"Industrial." 1 zite L:lrsR-1-rdi ■ Stzate l..ac.�s RegaYdiYYg t•Yeclieal Marijuana To learn whether a particular site is zoned Industrial,you should obtain the street address . 'Medical Mail Juana Dist.-ibution or assessor parcel number of the subject site and contact: Tax ■ Medical Marijuana ScottTaschner Cultivation Facilities Associate Planner • Medical Manj uana Oultivation City of Desert Hot Springs Tax 6595o Pierson Boulevard ■ Pending Legislation Desert Hot Springs,CA 92240 o CV UYYk Building (760)329-6411,Extension 256 r o Code C'onYplYa<. ce anti ComYYitYYi ity sta chner<c'citYofdlts.':rg PretieY'L ation o :garage/'Yard Sale Application A Conditional Use Permit and a Regulatory Permit are required pursuant to Ordinance No. o Tanning 552 and Ordinance No.553• o flu'rxic Work, • FitYaYice�:AflYYiitYi�t].x4.YCtiY • human Reso-urces • Police Deni • RDA/Successor An_eriey • RFP's;'RFQ's . .......... ... .............. .. .................... ..........................................._......_.......... ............._.................................... ...........................__..._..... City of Desert Hot Springs 65-950 Pierson Blvd. Desert Hot Springs,CA 92240 City Hall:(760)329-6411 1 Police Dept:(760)329-2904 1 Fire Dept:(760)329-5123 webmaster@cityofdhs.org http:/twww.cityofdhs.org/Medical_Marijuana_Cultivation_Facilities 1/1 ORDINANCE NO. .552 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS ADDING CHAPTER 5.50, "MEDICAL MARIJUANA FACILITIES REGULATORY PERMIT" TO TITLE 5, "BUSINESS LICENSES AND REGULATIONS" OF THE DESERT HOT SPRINGS MUNICIPAL CODE WHEREAS,on November 5,1996,California voters passed Proposition 215,which decriminalized the cultivation and use of marijuana by seriously ill individuals upon a physician's recommendation; and WHEREAS, Proposition 215, which was codified as section 11362.5 of the California Health and Safety Code was enacted to"ensure that seriously ill Californians have the right to obtain and use marijuana for medical purposes where that medical use is deemed appropriate and has been recommended by a physician who has determined that the person's health would benefit from the use of marijuana," and to "ensure that patients and their primary caregivers who obtain and use marijuana for medical purposes upon the recommendation of a physician are not subject to criminal prosecution or sanction"; and WHEREAS, On January 1, 2004, Senate Bill 420,the Medical Marijuana Program Act became law and was codified in sections 11362.7 to 11362.83 of the California Health and Safety Code;and WHEREAS, the Medical Marijuana Program Act, among other things, requires the California Department of Public Health to establish and maintain a program for the voluntary registration of qualified medical marijuana patients and their primary caregivers through a statewide identification card system;and WHEREAS,the Federal Controlled Substances Act,which was adopted in 1970,established a federal regulatory system designed to combat recreational drug abuse by making it a federal criminal offense to manufacture, distribute, dispense, or possess any controlled substance which includes marijuana; and WHEREAS,the Department of Justice of the State of California in the August 2008 Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use("2008 Attorney General Guidelines")has opined that neither Proposition 215, nor the Medical Marijuana Program Act conflict with Federal Controlled Substances Act, since "California did not 'legalize' medical marijuana, but instead exercised the state's reserved powers to not punish certain marijuana offenses under state law when a physician has recommended its use to treat a serious medical condition;and WHEREAS,in City of Riverside v Inland Empire Patients Health& Wellness Ctr., Inc.(2013)56 Cal. 4th 729, the California Supreme Court ruled unanimously that the Compassionate Use Act and the Medical Marijuana Program Act do not preempt local ordinances that completely and permanently ban medical marijuana facilities, but recognized that the local police power,which derives from California Constitution Art XI, Section 7, "includes broad authority to determine, for purposes of public health, safety, and welfare, the appropriate uses of land within a local jurisdiction's borders; and WHEREAS, if medical marijuana medical marijuana facilities and cultivation were permitted to be established or if existing business were permitted to distribute, sell or cultivate medical marijuana without appropriate regulation, such uses might be established in areas that would conflict with the requirements of the General Plan, be inconsistent with surrounding uses, or be detrimental to the public health, safety and welfare; and WHEREAS,the City Council desires to enact reasonable regulations pertaining to medical marijuana medical marijuana facilities and cultivation to ensure that qualified patients and their caregivers are afforded safe and convenient access to medical marijuana, while at the same time ensuring that such uses do not conflict with the General Plan, are not inconsistent with surrounding uses, and not detrimental to the public health, safety and welfare. Ordinance No. S6�2 Date Adopted:October 21,2014 Page 1 of 8 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS: Section 1. EVIDENCE That the City Council has considered all of the evidence submitted into the administrative record, which includes, but is not limited to, public comments, both written and oral, received and/or submitted at,or prior to the City Council's consideration of this ordinance. Section 2. ADDING CHAPTER 5.50 "MEDICAL MARIJUANA FACILITIES REGULATORY PERMIT" TO TITLE 5 "BUSINESS LICENSES AND REGULATIONS" OF THE DESERT HOT SPRINGS MUNICIPAL CODE Title 5 "Business Licenses and Regulations" of the Desert Hot Springs Municipal Code shall be amended as follows: Chapter 5.50 MEDICAL MARIJUANA FACILITIES REGULATORY PERMIT 5.50.010. Purpose and intent. Medical marijuana facilities shall be permitted,upon application and approval of a regulatory permit in accordance with the criteria and procedures set forth in this Code, which include the need to obtain and maintain a conditional use permit validly issued by the City per the Code. 5.50.020. Medical Marijuana Facilities. Medical marijuana facilities permitted under this chapter include medical marijuana dispensaries and medical marijuana cultivation facilities that are owned and operated by bona fide non-profit organizations such as a cooperative or a collective, subject to the provisions of the Compassionate Use Act of 1996(California Health and Safety Code Section 11362.5),the Medical Marijuana Program Act(California Health and Safety Code Sections 11362.7 through 11362.83),the California Attorney General's Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August,2008,and any other state laws pertaining to cultivating and dispensing medical marijuana. 5.50.030. Definitions. Words and phrases not specifically defined in this Code shall have the meaning ascribed to them as defined in the following sources: A. The Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5); B. The Medical Marijuana Program Act (California Health and Safety Code Sections 11362.7 through 11362.83); and C. The California Attorney General's Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August, 2008. 5.50.040. Permits required. Prior to initiating operations and as a continuing requisite to operating a medical marijuana facility,the legal representative of the persons wishing to operate a medical marijuana facility shall first obtain a Ordinance No. 552 Date Adopted:October 21,2014 Page 2 of 8 conditional use permit pursuant to the applicable provisions of this Code and then obtain a regulatory permit from the city manager or designee under the terms and conditions set forth in this chapter. The legal representative shall file an application with the city manager or designee upon a form provided by the city and shall pay an application fee as established by resolution adopted by the city council as amended from time to time. An application for a regulatory permit shall include, but shall not be limited to, the following information: A. An estimate of the size of the group of primary caregivers and/or qualified patients who will be served by the medical marijuana facility; B. Whether delivery service of medical marijuana to any location outside the medical marijuana facility will be provided and the extent of such service. C. The address of the location of the medical marijuana facility; D. A site plan and floor plan of the medical marijuana facility denoting all the use of areas of the medical marijuana facility, including storage,cultivation,exterior lighting and dispensing. E. A security plan that addresses how the following measures shall be implemented or complied with: 1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least 240 concurrent hours of digitally recorded documentation in a format approved by the city manager or designee.The cameras shall be in use 24 hours per day,7 days per week.The areas to be covered by the security cameras shall include, but are not limited to, the public areas, storage areas, employee areas, all doors and windows, and any other areas as determined to be necessary by the city manager or designee. 2. The medical marijuana facility shall be alarmed with an audible interior and exterior alarm system,unless waived for extenuating circumstances by the city manager or designee, that is operated and monitored by a recognized security company, deemed acceptable by the city manager or designee. Any change in the security company shall be subject to the approval of the city manager or his designee. All current contact information regarding the medical marijuana facility s security company shall be provided to the city manager or designee. 3. Entrance to the dispensing or cultivation areas and any storage areas shall be locked at all times, and under the control of medical marijuana facility staff. 4. All medical marijuana shall be securely stored, and a reliable, commercial alarm system shall be installed and maintained where the medical marijuana is secured. 5. A licensed security guard, licensed by the California Department of Consumer Affairs,shall be present at the medical marijuana facility during all hours of operation. If the security guard is to be armed,then the security guard shall possess at all times a valid Security Guard Card and Firearms Permit issued by the California Department of Consumer Affairs. F. The name and address of the owner and lessor of the real property upon which the medical marijuana facility is to be operated. In the event the applicant is not the legal owner of the property,the application must be accompanied with a notarized acknowledgement from the owner of the property that a medical marijuana collective or cooperative medical marijuana facility will be operated on his/her property. G. Authorization for the city manager or designee to seek verification of the information contained within the application. Ordinance No. 6-62 Date Adopted:October 21,2414 Page 3 of 8 H. Evidence that the organization operating the medical marijuana facility is organized as a bona fide non-profit cooperative, affiliation, association, or collective of persons comprised exclusively and entirely of qualified patients and the primary caregivers of those patients in strict accordance with the Compassionate Use Act of 1996, the Medical Marijuana Program Act and the 2008 Attorney General Guidelines. I. A statement in writing by the applicant that he or she certifies under penaltyof perjury that all the information contained in the application is true and correct. J. Any such additional and further information as is deemed necessary by the city manager or designee to administer this section. 5.50.050. Background check. All applicants for a regulatory permit for a medical marijuana facility, including any management personnel who are responsible for the day-to-day operations and activities of the medical marijuana facility shall be required to submit to a Fingerprint-Based Criminal History Records Check conducted by the Desert Hot Springs Police Department. 5.50.060. Grounds for denial. The city manager or designee shall reject an application upon making any of the following findings: A. The applicant made one or more false or misleading statements or omissions on the application or during the application process; B. The medical marijuana facility's related cooperative or collective is not properly organized in strict compliance pursuant to the Compassionate Use Act of 1996,the Medical Marijuana Program Act, the 2008 Attorney General Guidelines and any other applicable law, rules and regulations,- C. The applicant is not a primary caregiver or qualified patient or the legal representative of the medical marijuana facility; D. The medical marijuana facility is not permitted in the proposed area;or E. The applicant, or any person who is managing or is otherwise responsible for the activities of the medical marijuana facility has been convicted of a felony, or convicted of a misdemeanor involving moral turpitude, or the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, with the exception of medical cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996. 5.50.070. Limitations on city's liability. To the fullest extent permitted by law,the city shall not assume any liability whatsoever,with respect to approving any regulatory permit pursuant to this chapter or the operation of any medical marijuana facility approved pursuant to this chapter.As a condition of approval a regulatory permit as provided in this chapter, the applicant or its legal representative shall: A. Execute an agreement indemnifying the city from any claims, damages, etc. associated with the operation of the medical marijuana facility; B. Maintain insurance in the amounts and of the types that are acceptable to the city manager or designee; Ordinance No. 56A Date Adopted:October 21.2014 Page 4 of 8 C. Name the city as an additionally insured on all City required insurance policies,- D. Agree to defend, at its sole expense,any action against the city, its agents, officers, and employees related to the approval of a regulatory permit; and E. Agree to reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge related to the city's approval of a regulatory permit. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder. 5.50.080. Additional terms and conditions. Based on the information set forth in the application, the city manager or designee may impose reasonable terms and conditions on the proposed operations of the medical marijuana facility in addition to those specified in this chapter. 5.50.090. Compliance with state law. All medical marijuana facilities shall comply fully with all of the applicable restrictions and mandates setforth in state law and federal law,including without limitation the Compassionate Use Act of 1996, the Medical Marijuana Program Act and the 2008 Attorney General Guidelines. 5.50.100. Hours. All medical marijuana facilities may only be open between the hours of 8:00 a.m.and 10:00 p.m. and may operate as many as seven days per week. 5.50.110. Marijuana secured. AI marijuana and marijuana products shall be kept in a secured manner during business and non- business hours. 5.50.120. Consumable marijuana products. If consumable medical marijuana products(including,but not limited to,lollipops,brownies,cookies, ice cream,etc.)are present on site or offered for distribution,then the medical marijuana facility shall secure any approval from the County of Riverside Department of Health Services required for handling food products. 5.50.130. Sales taxes. All medical marijuana facilities must pay any applicable sales tax pursuant to federal,state,and local law. 6.50.140. Point of sale system. Medical marijuana facilities shall have an electronic point of sale system that produces historical transactional data for review by the city manager or designee for auditing purposes. 5.50.150. Odor control. Medical marijuana facilities shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the medical marijuana facility that is distinctive to its operation is not detected outside the medical marijuana facility,anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any Ordinance No. ,ram'52 Date Adopted:October 21,2014 Page 5 of 8 other unit located within the same building as the medical marijuana facility. As such, medical marijuana facilities must install and maintain the following equipment or any other equipment which the city manager or designee determines has the same or better effectiveness: A. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or B. An air system that creates negative air pressure between the medical marijuana facility's interior and exterior so that the odors generated inside the medical marijuana facility are not detectable outside the medical marijuana facility. 5.50.160. Records. All medical marijuana facilities shall perform an inventory on the first business day of each month and shall record the total quantity of each form of marijuana on the premises. These records shall be maintained for two(2)years from the date created and shall be made available to the city manager or designee upon request. 5.50.170. Community relations. Each medical marijuana facility shall provide the city manager or designee with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the medical marijuana facility or refer members of the public who may have any concerns or complaints regarding the operation of the medical marijuana facility. Each medical marijuana facility shall also provide the above information to its business neighbors located within 100 feet of the medical marijuana facility as measured in a straight line without regard to intervening structures, between the front doors of each establishment. 5.50.180. Compliance. All medical marijuana facilities and their related collectives or cooperatives shall fully comply with all the provisions of the Compassionate Use Act of 1996,the Medical Marijuana Program Act,the 2008 Attorney General Guidelines, all applicable provisions of this Code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit. 5.50.190. Inspections and Enforcement. A. Recordings made by security cameras at any medical marijuana facility shall be made immediately available to the city manager or designee upon verbal request;no search warrant or subpoena shall be needed to view the recorded materials. B. The city manager or designee shall have the right to enter all medical marijuana facilities from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. C. Operation of the medical marijuana facility in non-compliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the Municipal Code and shall be enforced pursuant to the provisions of this Code. D. The city manager or designee may summarily suspend or revoke a medical marijuana regulatory permit if any of the following, singularly or in combination, occur: 1. The city manager or designee determines that the medical marijuana facility has failed to comply with this chapter or any condition of approval or a circumstance or situation has Ordinance No. 652 Date Adopted:October 21,2014 Page 6 of 8 been created that would have permitted the city manager or designee to deny the permit under section 5.50.030; 2. Operations cease for more than 90 calendar days,including during change of ownership proceedings; 3. Ownership is changed without securing a regulatory permit; 4. The medical marijuana facility fails to maintain 240 continuous hours of security recordings; or 5. The medical marijuana facility fails to allow inspection of the security recordings, the activity logs, or the premise by authorized city officials. 5.50.120. Appeals. Any decision regarding the denial,suspension or revocation of a regulatory permit may be appealed to a hearing officer pursuant to the provisions set forth in Chapter 4.36. The procedures governing suspension and revocation in chapter 4.36 shall apply equally to the denial of a regulatory permit.Said appeal shall be made by a notice of appeal from the person appealing within thirty(30)days from the date of the decision. 5.50.130. Cessation of operations. In the event a qualified medical marijuana facility that receives a regulatory permit ceases to operate for any reason,the city manager or designee shall consider the next qualified applicant on the waiting list placed in order of application and provide an opportunity for new applicants to be considered for a permit. 5,50.140. Permits not transferable. Regulatory permits issued pursuant to this chapter are not transferrable. 5.50.150. Violations. A. Any violation of any of the provisions of this chapter is unlawful and a public nuisance. B. Any violation of any of the provisions of this chapter shall constitute a misdemeanor violation and upon conviction thereof any violation shall be punishable by a fine not to exceed one thousand dollars,or by imprisonment in the countyjail for a period of not more than six months,or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. C. In lieu of issuing a misdemeanor citation,the city may issue an administrative citation, and/or assess an administrative fine of up to one thousand dollars($1,000.00)for each violation of this ordinance pursuant to the procedures set forth in Title 14. D. A separate offense occurs for each day any violation of this chapter is continued and/or maintained. E. The remedies provided herein are not to be construed as exclusive remedies,and in the event of violation, the city may pursue any proceedings or remedies otherwise provided by law. Ordinance No. -'17GO Date Adopted:October 21,2014 Page 7 of 8 Section 3. SEVERABILITY That the City Council declares that,should any provision,section,paragraph,sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation,the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect. Section 4. EXECUTION AND CERTIFICATION That the City Clerk is directed to do all things necessary to cause the execution of this ordinance immediately upon its adoption and shall thereafter certify to the passage of this ordinance and cause the same to be published according to law. Section 5. EFFECTIVE DATE That this ordinance shall take effect thirty(30)days after its second reading by the Desert Hot Springs City Council. That foregoing Ordinance was approved and adopted at a meeting of the City Council held on October 21, 2014, by the following vote: AYES: 5 — BENS•1 MATA5 MoM I PyV-) A►P M41M 4AMCWC-0. NOES: Notio. ABSENT: NONE. ABSTAIN: NONE• ATTEST: Je ryl Soriano, Clerk Adam Sanchez, Sr., Mayor APPROVEP AS TO FORM: Steven B.Quintanilla, yMforney Ordinance No. ✓r52 Date Adopted:October 21,2014 Page 8 of 8 City of Desert Hot Springs 65950 Pierson Boulevard Desert Hot Springs, CA 92240 760-329-641 cityofdhs.org Cultivation of Medical Marijuana Orientation Packet for Development Applications Revised June 2016 Page No. Contents 2 Process Map 3 Map of Lands Zoned for Cultivation of Medical Marijuana 4 Application for Conditional Use Permit 9 Sample Environmental Clearance (Mitigated Negative Declaration) 25 List of Qualified Environmental Firms 26 Sample Conditions of Approval 40 Mission Springs Water District Contact Information 41 So Cal Edison Forms 45 Development Agreement Template 65 Regulatory Permit Application 68 Zoning Regulations related to Cultivation 71 Municipal Code Regulations related to Cultivation Note: All forms, templates, codes and regulations contained herein are excerpts or partial copies from the City's Municipal and Zoning codes or other resources. Contact city staff for complete forms or templates intended for use as actual submissions or applications. DO NOT USE THE FORMS IN THIS PACKET FOR YOUR APPLICATION! Page 1 of 75 O� PALM St'� Planninq Commission Staff Report V N { °Hnr•rt° C�L1F0Ra\ DATE: April 8, 2015 PUBLIC HEARING SUBJECT: CITY OF PALM SPRINGS FOR A ZONE TEXT AMENDMENT TO AMEND PALM SPRINGS ZONING CODE (PSZC) REGARDING CULTIVATION OF MEDICAL CANNABIS AND DEVELOPMENT STANDARDS FOR MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES, (CASE 5.1218-D ZTA). (FF) FROM. Department of Planning Services SUMMARY The City Council Subcommittee on medical cannabis has requested recommendations from the Planning Commission regarding the following: • Allowing medical cannabis cultivation facilities separate from Medical Cannabis Cooperatives or Collectives; and • Expanding the zoning districts where Medical Cannabis Cooperatives or Collectives may be permitted. RECOMMENDATION: Open the public hearing and forward recommendations to the City Council. BACKGROUND & SETTING The City Council Subcommittee on medical cannabis has recommended consideration of two potential ordinances relating to medical cannabis. The first recommendation an ordinance that could allow the cultivation of marijuana in locations other than within an approved medical cannabis cooperative or collective. The second recommendation is an ordinance expanding the zoning districts where medical cannabis cooperatives or collectives are allowed to include commercial and/or office zones. The recommendations of the subcommittee were presented to the City Council on January 21", 2015; the City Council voted to initiate Zone Text Amendments and to refer these amendment concepts to the Planning Commission for recommendations. Based on the direction of the subcommittee, the following issues have been identified for discussion by the Planning Commission: Planning Commission Staff Report April 8,2015 Case 5.1218-D ZTA Page 2 of 3 Medical Cannabis Cultivation Facilities • Operational provisions: It is intended that cultivation facilities would only be operated by an approved Medical Cannabis Cooperative or Collective (MCCC) as a means to supply the collective. As proposed, the cultivation facility could be on the premises of the MCCC or could be located on a separate site. The approval process and development standards would generally be the same as currently in place for MCCC facilities. • Zoning districts: It is proposed that cultivation facilities be permitted only within enclosed buildings, and that cultivation activities be restricted to the City's industrial zoning districts. While agricultural uses may be permitted in the O (Open Land) and UR (Urban Reserve) zoning districts, the environmental and development restrictions associated with these zoning districts would most likely preclude the development of a facility that would conform to the operational requirements for marijuana cultivation. • Separation distance requirements: Separation distance requirements are currently in place for MCCC facilities, and prevent MCCC facilities from being located within a specified distance of protected uses and other MCCC facilities. As cultivation facilities would be within enclosed facilities and not be open or accessible to the general public, the need for separation distance requirements for cultivation facilities may be unnecessary. Medical Cannabis Cooperative or Collective Facilities (MCCC) • Operational requirements: No changes are currently proposed to the operation requirements or development standards for MCCC facilities. • Zoning districts: Currently, MCCC facilities are only allowed in industrial zoning districts. The City Council subcommittee has considered the expansion of MCCC facilities into commercial and/or office zoning districts. The following discussion offers two different approaches to allowing MCCC facilities in commercial and/or office zoning districts: 1. Comparable to a medical office or pharmacy use. Allow MCCC facilities in the same zoning districts as medical offices and pharmacies, which would include the following zoning districts: • P (Professional) • C-B-D (Central Business District) ■ C-D-N (Designed Neighborhood Shopping Center) ■ C-S-C (Community Shopping Center) • C-1 (Retail Business) • C-1AA (Large-Scale Retail Commercial) ■ C-2 (General Commercial) ■ HC (Highway Commercial) 2. Comparable to liquor uses. Allow MCCC facilities in the same zoning districts as liquor-related uses, which would include the districts listed above, with the exception of the P (Professional) zoning district. • Distance separation requirements: The current regulations require a 500-foot separation distance from schools, public parks/playgrounds, child care Planning Commission Staff Report April 8,2015 Case 5.1218-D ZTA Page 3 of 3 facilities, youth center, church, or residential zones. In addition, a 1000-foot separation distance is required from the nearest adjacent MCCC facility. The Planning Commission may consider expansion, reduction or elimination of one or more of the separation distance requirements, based on any other current or proposed development restrictions. ENVIRONMENTAL ASSESSMENT Pursuant to the California Environmental Quality Act (CEQA) Guidelines, the proposed Zone Text Amendment has been deemed a "project." Staff has determined that the proposed Zone Text Amendment (Case 5.1365 ZTA) may be deemed Categorically Exempt from the provisions of CEQA under Section 15305 (Minor Alterations in Land Use Limitations) of the Guidelines for the California Environmental Quality Act. The proposed zone text amendment proposes only insignificant changes to the title. i NOTIFICATION I k A public hearing notice was published in accordance with the requirements of State law and local ordinance. As of the writing of this report, staff has not received any comment on the proposed ordinance. Flinn Fagg, AICP Director of Planning Services Attachments: 1. Proposed Amendments 2. City Council Staff Report and Minutes —January 21, 2015 Medical Cannabis Regulatory Program: Proposed Amendments Section 91.00.10(B) Definitions "Medical Cannabis Cultivation Facility" means an enclosed facility where medical cannabis is cultivated and processed only for distribution to the licensed Medical Cannabis Cooperative or Collective which it serves. i Section 93.23.15 Medical Cannabis Cooperative or Collective and Medical Cannabis Cultivation Facilitv Special Standards A. No land use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a MCCC or Medical Cannabis Cultivation Facility (MCCF) shall be granted or permitted except in conformance with this Section. B. T4e MCCC and MCCF establishments shall be permitted only upon application and approval of a regulatory permit in accordance with the criteria and process set forth in Chapter 5.35 of this Code. Prior to initiating operations and as a continuing requisite to conducting operations, the legal representative of the persons wishing to operate a MCCC or MCCF shall obtain a regulatory permit from the City Manager under the terms and conditions set forth in Chapter 5.35 of this Code and shall otherwise fully comply with the provisions of this Section. C. No MCCC shall be established, developed, or operated within five hundred (500) feet of a school, public playground or park, or any residential zone property, child care or day care facility, youth center, or church, or within one thousand (1,000) feet of any other MCCC, and shall not be lOGated en aRy propeFty that we, GGGupied'-with ci+rr meMial retail use where such use is the r.rim.sni use en SQGh may. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest property line of the property on which the MCCC is, or will be located, and to the nearest property line of those uses described in this Subsection. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.B. D. A MCCC or MCCF is not and shall not be approved as an accessory use to any other use permitted by this Zoning Code. MCCC and MCCF facilities may be located on the same parcel or on the same premises as otherwise permitted by this Zoning Code_ E. A MCCC or MCCF shall be parked at a rate of one (1) space for every two hundred fifty (250) gross square feet of office space, and one (1) space for every eight hundred (800) feet of warehouse/cultivation space. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.13. 5.1218-D ZTA Page 1 MCCC Permitted Zoning Districts — Proposal 1: Distric.#'. MCCC MCCC Ex1sting Proposed P Professional P C-B-D Central Business District P C-D-N (Designed Neighborhood Shopping Center P C-S-C (Community Shopping Center P C-1 Retail Business) P j C-1AA Lar a-Scale Retail Commercial P C-2 General Commercial P HC (Highway Commercial P C-M Commercial Manufacturing) P P M-1-P Planned Research and Development Park P M-1 Service/ Manufacturing) P P M-2 (Manufacturing) P P A (Airport) P P MCCC Permitted Zoning Districts — Proposal 1: District MCCC. Extstin Pro used P Professional C-B-D Central Business District P C-D-N (Designed Neighborhood Shopping Center P C-S-C (Community Shopping Center P C-1 Retail Business P C-1AA (Large-Scale Retail Commercial P C-2 General Commercial P HC (Highway Commercial P C-M Commercial Manufacturing) P P M-1-P Planned Research and Development Park P M-1 Service/ Manufacturing) P P M-2 (Manufacturing) P P A (Airport) P P Dis#rIC# C-M Commercial Manufacturing) P M-1-P Planned Research and Development Park P M-1 Service/ Manufacturing) P M-2 (Manufacturing) P A (Airport P 5.1218-D ZTA Page 2 p A L'�Sa O 4� a 4 N 4 4 • YDI •� i CJ ty Council Staff pep DATE; January 21, 2015 LEGISLATION t SUBJECT: INITIATION OF AMENDMENTS TO THE CITY'S ZONING CODE REGARDING CULTIVATION OF MARIJUANA IN THE CITY AND TO ALLOW MEDICAL CANNABIS WITHIN COMMERCIAL AND/OR OFFICE ZONES IN THE CITY FROM: David Ready, City Manager BY: Douglas Holland, City Attorney I SUMMARY The Council's Subcommittee on medical cannabis is recommending the City Council consider the adoption of two potential ordinances relating to medical cannabis. One of these ordinances would address the issue of cultivation of marijuana in locations other than within an approved medical cannabis co-operative or collective. The second ordinance would address the issue of allowing medical cannabis cooperatives or collectives within commercial and/or office zones. These ordinances are required to be reviewed and considered by the Planning Commission and the Subcommittee is recommending the Council refer these issues to the Planning Commission for its review and recommendations. RECOMMENDATION: 1. INTITIATE ZONE TEXT AMENDMENTS PURSUANT TO SECTION 97.07.01.A_1.6 OF THE CITY'S ZONING CODE FOR THE CULTIVATION OF MARIJUANA WITHIN THE CITY AND MEDICIAL CANNABIS COOPERATIVES OR COLLECTIVES WITHIN COMMERCIAL AND/OR OFFICE ZONES IN THE CITY AND REFER THESE AMENDMENT CONCEPTS TO THE PLANNING COMMISSION FOR HEARING, REVIEW, AND RECOMMENDATION. STAFF ANALYSIS: The City currently regulates medical cannabis through zoning and locational requirements of the City's Zoning Ordinance and the operational requirements provided in Chapter 5.35 of the Municipal Code. Medical Cannabis Collectives and Cooperatives (MCCC) are only allowed in the City's industrial zones: the C-M, M-1-P, M-1, and M-2 tTEM NO. �-' City Council Staff Report January 21, 2015-- Page 2 Medical Cannabis Zones. Certain locational requirements are provided in Section 93.23.15 of the Zoning Code. Cultivation of cannabis/marijuana is not specifically addressed in the Zoning Ordinance and a few cultivation requirements are provided as part of the City's regulatory program in Chapter 5,35. Cultivation is only allowed on the premises of each approved MCCC. The Council's Subcommittee on Medical Cannabis is recommending the City Council consider allowing additional cultivation approaches within the City. One approach would allow the approved MCCCs to separately or collectively operate one or more cultivation facilities off-site; that is, on property that is not being operated as a medical cannabis facility. It is contemplated that such facilities would be indoors, within j an industrial or commercial building, managed by one or more of the permitted MCCC's I and such facilities would not be used for the distribution of cannabis to patients or I caretakers. A second approach would be to allow cultivation of marijuana as an agricultural use of land within a building on land where agriculture uses are allowed. Locational requirements and various development standards would also need to be considered. The Subcommittee is also supportive of increasing the number of permitted MCCCs in the City. If it appears the Council would be willing to consider an increase, the Subcommittee would recommend the Council consider allowing medical MCCCs to be located in commercial and/or office zones the Council and Planning Commission deem most appropriate, For example, the Subcommittee would not recommend such use within the C-B-D, Central Business District Zone. The current locational requirements under the Zoning Code should also be revisited and considered for application to any proposal to allow MCCCs in any other Zone. The Subcommittee is recommending that the land use and zoning issues identified in this report be referred to the Planning Commission for hearing, review, and recommendation in accordance with the provisions of the City's Zoning Code. ENVIRONMENTAL ASSESSMENT: An amendment to the City's Zoning Code is a "project" as defined by CEQA and will be environmentally assessed prior to or concurrently with its review by the Planning Commission and prior to submission to the City Council. FISCAL JMPACT: No fiscal impact. Douglas Holland, City Attorney David Ready, City Ma I 1658537) 02 City Council Minutes January 21,2015 Page 7 Mayor Pro Tem Lewin commented on the practice and policy of City awarding public works contracts to the lowest responsible bidde ACTION: 1) Waive the reading of the ordinance text in i entirety and read by title only; and 2) Introduce on first reading O ance No. 1870, "AN ORDINANCE OF THE CITY OF PALM SP GS, CALIFORNIA, AMENDING SECTION 7.08.0.30 OF THE PAL PRINGS MUNICIPAL CODE, RELATING TO BID PROTESTS." Mo . Councilmember Foat, seconded by Councilmember Mills and nimously carried on a roll call vote. 3.13. PROPOSED ORDINANCE AME NG AND RESTATING CHAPTER 5.34 OF THE PALM SPRIN MUNICIPAL CODE RELATING TO MASSAGE ESTABLISHME City Attorney Holland pro ' ed background information as outlined in the Staff Report dated Jan 21, 2015. ACTION: 1) Wai the reading of the ordinance text in its entirety and read by title o ; and 2) Introduce on first reading Ordinance No. 1871, "AN ORDI CE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMEND AND RESTATING CHAPTER 5.34 OF THE PALM SPRINGS MUN AL CODE RELATING TO MASSAGE ESTABLISHMENTS." M on Councilmember Mills, seconded by Councilmember Foat and animously carried on a roll call vote. 3.C. INITIATION OF AMENDMENTS TO THE PALM SPRINGS ZONING CODE REGARDING CULTIVATION OF MARIJUANA IN THE CITY AND TO ALLOW MEDICAL CANNABIS WITHIN COMMERCIAL AND/OR OFFICE ZONES IN THE CITY: Mayor Pougnet provided background information on the discussion of the. City Council Subcommittee regarding medical cannabis, and commented on the process for permitting the prior medical cannabis collectives. Councilmember Foat commented on impact to patients and medical cannabis users; and the objectives for the growing of medical cannabis. Councilmember Mills requested a review and analysis be provided for the past history of illegal operations. Mayor Pro Tern Lewin commented on the access to patients, ease of access, sufficient operators to reduce the cost to patients, and the benefits for well regulated grow facilities. Councilmember Hutcheson stated his support for other Councilmember comments, and the cultivation and regulation of medical cannabis. 007 City Council Minutes January 21, 2015 Page 8 Councilmember Foat stated the land use operations will be forwarded to the Planning Commission, and requested the Commission review the many restrictions in proximity to other types of establishments. ACTION: Initiate Zone Text Amendments pursuant to Section 97.07.01.A.1.6 of the Palm Springs Zoning Code for the cultivation of marijuana within the City and medical cannabis cooperatives or collectives within the commercial and/or office zones in the City and refer these amendment concepts to the Planning Commission for hearing, review; and recommendation. Motion Councilmember Hutcheson, seconded by Mayor Pro Tern Lewin and unanimously carried on a roll call vote. 4. UNFINISHED BUSINESS: 4.A. UPDATE ON THE PALM SPRINGS BUZZ TROLLEY SERVICE PILO PROGRAM: Josh Morgerman, Symblaze, provided an update on the Palm S ngs BUZZ. Councilmember Hutcheson commented on the successful nch of the BUZZ, requested the expansion of days to include a Coachella Weekend and other special events in the Coachella Va Councilmember Foat questioned the current op tional hours and the availability of information to make further isions, and operational changes for summer months. I Mayor Pro Tern Lewin commented the successful launch and the remarks from outside tourism public ns. Mayor Pougnet commented o e successful roll-out of the program and the public's positive receptio No action taken. 4.13. CITY WIDE SOL EQUEST FOR PROPOSAL UPDATE: Al Smoot, Spe ' Projects Coordinator, provided background information as outlined 1 e Staff Report dated January 21, 2015. Council mber Foat commented on the participation of local firms in the proc the poten#ial for smaller vendors to bid on a portion of the pr ts, if the City will consider some projects with the system owned by e City, and some as third party providers. 008 ORDINANCE NO. 1845 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 1.01.110, PARAGRAPH A.20 OF SECTION 92.15.01, PARAGRAPH A.6 OF SECTION 92.10.01, PARAGRAPH A.5 OF SECTION 92.17.1.01, AND SECTION 93.23.15 OF, AND ADDING CHAPTER 5.35 AND SECTIONS 3.35.080, 3.35.090, 3.35.100, 3.35.110, AND 3.35.120 TO, AND REPEALING SECTION 6.08.150 OF, THE PALM SPRINGS MUNICIPAL CODE, RELATING TO REGULATIONS FOR MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES IN THE CITY. City Attorney Summary This Ordinance relates to the City's regulatory program for medical cannabis cooperatives and collectives in the City. The current Code established a regulatory program as a part the City's Zoning Code. This Ordinance retains traditional zoning and land use considerations affecting medical cannabis cooperatives and collectives in the Zoning Code. This Ordinance also creates a comprehensive regulatory program for medical cannabis and collectives in the City as Chapter 5.35 of the Palm Springs Municipal Code. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA ORDAINS: SECTION 1. Section 1.01.110 of the Palm Springs Municipal Code is amended by adding the following definition of"City Manager:" "City Manager " means the City Manager of the City or the designee or designees of the City Manager. SECTION 2. Section 3.35.080 is added to the Palm Springs Municipal Code to read: 3.35.080 Returns and Remittances. The Tax shall be due and payable as follows: A. Each person owing Tax, on or before the last business day of each calendar month as established by the City Manager, shall prepare a tax return to the City Manager of the total proceeds and the amount of Tax owed for the preceding calendar month. At the time the Tax return is filed, the full amount of the Tax owed for the preceding calendar month shall be remitted to the Director. B. All tax returns shall be completed on forms provided by the Director. C. Tax returns and payments for all outstanding taxes owed the City are immediately due the City Manager upon cessation of business for any reason. i 1 Ordinance No. 1845 Page 2 D. Whenever any payment, statement, report, request or other communication received by the City Manager is received after the time prescribed by this Section for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed on or prior to the date prescribed in this Section for the receipt thereof, or whenever the City Manager is furnished substantial proof that the payment, statement, report, request, or other communication was in fact deposited in the United States mail on or prior to the date prescribed for receipt thereof, the City Manager may regard such payment, statement, report, request, or other communication as having been timely received. if the due day falls on Friday, Saturday, Sunday, or a holiday, the due day shall be the last regular business day on which the City hall is open to the public prior to the due date. E. Unless otherwise specifically provided under other provisions of this Chapter, the taxes required to be paid pursuant to this Chapter shall be deemed delinquent if not paid on or before the due date specified in Subsection A of this Section. F. The City Manager is not required to send a delinquency or other notice or bill to any person subject to the provisions of this Resolution and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this Resolution. SECTION 3. Section 3.35.090 is added to the Palm Springs Municipal Code to read: 3.35.090 Failure to Pay Tax. A. Any person who fails or refuses to pay any tax required to be paid pursuant to this Chapter on or before the due date shall pay penalties and interest as follows: 1. A penalty equal to twenty-five percent of the amount of the Tax in addition to the amount of the Tax, plus interest on the unpaid Tax calculated from the due date of the Tax at a rate established by resolution of the City Council; and 2. An additional penalty equal to twenty-five percent of the amount of the Tax if the tax remains unpaid for a period exceeding one calendar month beyond the due date, plus interest on the unpaid Tax and interest on the unpaid penalties calculated at the rate established by resolution of the City Council. B. Whenever a check is submitted in payment of a Tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior to the due date, the taxpayer will be liable for the Tax amount due plus penalties and interest as provided for in this section plus any amount allowed under state law. C. The Tax due shall be that amount due and payable from January 1, 2014 or the first date on which the collective first operated in the City, whichever date occurred last, together with applicable penalties and interest calculated in accordance with Subsection Ordinance No. 1845 Page 3 A of this Section. D. The City Manager may waive the first and second penalties of twenty-five percent each imposed upon any person if: 1. The person provides evidence satisfactory to the City Manager that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the person paid the delinquent business tax and accrued interest owed the City prior to applying to the City Manager for a waiver. 2. The waiver provisions specified in this subsection shall not apply to interest accrued on the delinquent tax and a waiver shall be granted only once during any twenty-four month period. SECTION 4. Section 3.35.100 is added to the Palm Springs Municipal Code to read: 3.35.100 Refunds. A. No refund shall be made of any tax collected pursuant to this Resolution, except as provided in this Section. B. No refund of any Tax collected pursuant to this Chapter shall be made because of the discontinuation, dissolution, or other termination of a MCCC. C. Any person entitled to a refund of taxes paid pursuant to this Chapter may elect in writing to have such refund applied as a credit against MCCC's Taxes for the next calendar month. D. Whenever the amount of any tax, penalty, or interest has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the City under this Chapter, such amount may be refunded to the claimant who paid the Tax provided that a written claim for refund is filed with the City Manager. E. The City Manager shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant therefor refuses to allow such examination of claimant's books and business records after request by the City Manager to do so. G. In the event that the Tax was erroneously paid and the error is attributable to the City, the entire amount of the Tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the City shall retain the amount set forth in this Chapter from the amount to be refunded to cover expenses. Ordinance No. 1845 Page 4 H. The City Manager shall initiate a refund of any Tax which has been overpaid or erroneously collected whenever the overpayment or erroneous collection is uncovered by a City audit of Tax receipts. In the event that the Tax was erroneously paid and the error is attributable to the City, the entire amount of the Tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the City shall retain the amount set forth in this Resolution from the amount to be refunded to cover expenses. SECTION 5. Section 3.35.110 is added to the Palm Springs Municipal Code to read: 3.35.110 Enforcement. A. It shall be the duty of the City Manager to enforce each and all of the provisions of this Chapter. B. For purposes of administration and enforcement of this Chapter generally, the City Manager, with the concurrence of the City Attorney, may from time to time promulgate administrative rules and regulations. C. The City Manager shall have the power to audit and examine all books and records of collectives as well as persons engaged in the operation of a MCCC, including both state and federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of MCCC or persons engaged in the operation of a MCCC, for the purpose of ascertaining the amount of Tax, if any, required to be paid by the provisions of this Chapter, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to the provisions of this Chapter. If such MCCC or person, after written demand by the City Manager, refuses to make available for audit, examination or verification such books, records, or equipment as the City Manager requests, the City Manager may, after full consideration of all information within the City Manager's knowledge concerning the collective and its business and activities of the person so refusing, make an assessment in the manner provided in Sections 3.35.120. D. The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this Chapter or of any state law requiring the payment of all taxes. E. Any person violating any of the provisions of this Chapter or any regulation or rule passed in accordance herewith, or knowingly or intentionally misrepresenting to any officer or employee of the City any material fact in procuring the certificate or document from the City as provided for in this Chapter or Chapter 5.35 shall be deemed guilty of a misdemeanor Ordinance No. 1845 Page 5 SECTION 6. Section 3.35.120 is added to the Palm Springs Municipal Code to read: 3.35.120 Debts; Deficiencies; Assessments. A. The amount of any tax, penalties, and interest imposed by the provisions of this Chapter shall be deemed a debt to the City and any person operating a MCCC without first having procured a business tax license as provided in Division If of this Title of the Palm Springs Municipal Code shall be liable in an action in the name of the City in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such MCCC. B. If the City Manager is not satisfied that any statement filed as required under the provisions of this Chapter is correct, or that the amount of tax is correctly computed, the City Manager may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Subsections C, D, and E of this Section. C. Under any of the following circumstances, the City Manager may make and give notice of an assessment of the amount of tax owed by a person under this Chapter: 1. If the person has not filed any statement or return required under the provisions of this Resolution; 2. If the person has not paid any tax due under the provisions of this Resolution; 3. If the person has not, after demand by the City Manager, filed a corrected statement or return, or furnished to the City Manager adequate substantiation of the information contained in a statement or return already filed, or paid any additional amount of tax due under the provisions of this Chapter; 4. If the City Manager determines that the nonpayment of any business tax due under this Chapter or Division II of this Title is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this Chapter. Ordinance No. 1845 Page 6 5. The notice of assessment shall separately set forth the amount of any tax known by the City Manager to be due or estimated by the City Manager, after consideration of all information within the City Manager's knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this Chapter, and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment. D. The notice of assessment shall be served upon the person either by handing it to him or her personally, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business appearing on the face of the business tax certificate issued under Division II of this Title, Chapter 5.35, or to such other address as he or she shall register with the City Manager for the purpose of receiving notices provided under this Chapter or Chapter 5.35; or, should the person have no business tax certificate issued and should the person have no address registered with the City Manager for such purpose, then to such person's last known address. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail. E. Within ten days after the date of service the person may apply in writing to the City Manager for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the tax assessed by the City Manager shall become final and conclusive. Within thirty days of the receipt of any such application for hearing, the City Manager shall cause the matter to be set for hearing before a hearing officer pursuant to the provisions of Section 1.06.050 of this Code not later than thirty days after the date of application, unless a later date is agreed to by the City Manager and the person requesting the hearing. Notice of such hearing shall be given by the City Manager to the person requesting such hearing not later than five days prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the City Manager should not be confirmed and fixed as the tax due. After such hearing the hearing officer shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in this Chapter for giving notice of assessment. SECTION 7. Chapter 5.35 is added to the Palm Springs Municipal Code to read: Comprehensive Medical Cannabis Regulatory Program 5.35.100 General Provisions 5.35.110 Definitions 5.35.120 Maximum Number of MCCCs 5.35.200 Applications 5.35.210 Process for Issuing a New Permit for a MCCC 5.35.220 Process for Renewing a MCCC Permit 5.35.230 Changes in Governance of Permitted Entities 5.35.240 Complete Applications Required for Certain Individuals Ordinance No. 1945 Page 7 5.35.250 Permittee Required to Keep Mailing Address Current with the City Manager 5.35.260 Length of Permit 5.35.270 Possession of Location 5.35.280 Changing, Altering, or Modifying Location 5.35.300 Security Plan 5.35.310 Video Surveillance 5.35.320 Waste Disposal 5.35.330 Health and Safety Regulations 5.35.340 Cultivation Operation: Health and Safety Regulations 5.35.500 Mobile Marijuana Dispensaries 5.35.600 Maintenance of Business Records. 5.35.610 Independent Audit May Be Required 5.35.620 Manager Change Must Be Reported 5.35.700 Labeling, Packaging, and Product Safety 5.35.710 Testing 5.35.720 False and Misleading Statements 5.35.800 Violation 5.35,810 Authority and Responsibility Under this Chapter 5.35.820 Appeals 5.35.830 Specific Enforcement Alternatives 5.35.100 General Provisions. No person shall engage in the business or activity of cultivating, possessing, selling, distributing, dispensing, or offering to sell, distribute, or dispense Medical Cannabis or Medical Cannabis Infused Product unless such person fully complies with the provisions of this Chapter, has received any and all permits required in this Chapter, and operates solely at a Location approved by the City pursuant to Section 93.23.15 of this Code, subject to all requirements and conditions of approval attendant to the issuance of such permits and approval of such Location. 5.35.110 Definitions. The following definitions of terms shall apply to this Chapter, unless the context requires otherwise: "Advertising" means the publication, dissemination, solicitation, or circulation, visual, oral, or written, to induce directly or indirectly any Person to patronize a particular a MCCC, or to purchase particular Medical Cannabis or a Cannabis-Infused Product. "Alarm Installation Company" means a Person engaged in the business of selling, providing, maintaining, servicing, repairing, altering, replacing, moving, or installing a Security Alarm System in a Location and operating in full compliance with Chapter 5.02 of this Code. Ordinance No. 1845 Page 8 "Applicant" means a Person that has submitted an application pursuant to this Chapter that was accepted by the City Manager for review but has not been approved or denied by the City. "Application Period" means a sixty (60) day period commencing on a date approved by the City Council (or such period of time as the Council may establish) plus an additional thirty (30) days (or such period of time as the City Council may establish) to complete the reviews and the preparation of the reports called for in Section 5.35.210. "Cannabis-infused Product' means any product that contains Medical Cannabis or marijuana that is intended to be consumed orally, including but not limited to, any type of food, drink, pill, baked goods, or other consumable products, or used topically such as tinctures. "Change in Governance" means any change in the Operator or the Board of Directors of the MCC. "Child-Resistant" means special packaging that is: a. Designed or constructed to be significantly difficult for children under five years of age to open and not difficult for normal adults to use properly as provided under federal law; b. Opaque so that the product cannot be seen from outside the packaging; C. Closable for any product intended for more than a single use or containing multiple servings, and d. Labeled properly as required by this Chapter. "Container" means the sealed package in which Medical Cannabis or a Cannabis- Infused Product is placed for sale to a patient and that has been labeled according to the requirements set forth in this Chapter. "Days" means calendar days. "Flower" means the gametophytic or reproductive state of Cannabis in which the plant is in a light cycle intended to produce flowers, trichromes, and cannabinoids characteristic of Cannabis. "Good Moral Character" means an individual with a personal history demonstrating honesty, fairness, and respect for the rights of others and for the law. "Immature plant" means a nonflowering Medical Cannabis plant that is no taller than eight inches and no wider than eight inches produced from a cutting, clipping, or seedling and that is in a growing/cultivating container that is no larger than two inches wide and two inches tall that is sealed on the sides and bottom. Ordinance No. 1845 Page 9 "Location" means the premises specified in an application for a permit pursuant to this Chapter that is owned or in possession of the Permittee and within which the Permittee is authorized to cultivate, manufacture, distribute, dispense, or sell Medical Cannabis in accordance with the provisions of this Chapter. "Limited Access" means a building, room, or other contiguous area upon the Location where Medical Cannabis is grown, cultivated, stored, weighed, packaged, sold, or processed for sale, under control of the Permittee. "Location" means the premises specified in an application for a permit pursuant to this Chapter that is owned or in possession of the Permittee and within which the Permittee is authorized to cultivate, manufacture, distribute, dispense, or sell Medical Cannabis in accordance with the provisions of this Chapter. "Management Permit" means a Permit for an individual who is an Operator of the MCCC. "Medical Cannabis" and "Medical Marijuana" are defined in strict accordance with California Health and Safety Code sections 11362.5 and 11362.7 et seq. "Medical Cannabis Cooperative or Collective" or "MCCC" means five or more qualified patients and caregivers who collectively or cooperatively cultivate and share physician- recommended cannabis or marijuana in a manner strictly consistent with the State Guidelines. The term "Medical Cannabis Cooperative or Collective" shall not include dispensing by primary caregivers to qualified patients in the following locations and uses: a clinic permitted pursuant to Chapter 1 of Division 2 of the Health and Safety Code; a health care facility permitted pursuant to Chapter 2 of the Division 2 of the Health and Safety Code; a residential care facility for persons with chronic life- threatening illness permitted pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code; a residential care facility for the elderly permitted pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code; a residential hospice; or a home health agency permitted pursuant to Chapter 8 of Division 2 of Health and Safety Code, as long as such use complies strictly with applicable law including, but not limited to, Health and Safety Code sections 11362.5 and 11362.7 et. seq., or the cultivation, storage, or use by a qualified patient or patients or that patient's or patients' primary caregiver or caregivers, incidental to a residential use by, and for the sole use of, the patient or patients who reside at such residential use location. "Mobile Marijuana Dispensary" means any clinic, cooperative, club, business, or group which transports or delivers, or arranges the transportation or delivery, of medical marijuana to a Person. "Mobile Operation" means any effort to locate, operate, own, lease, supply, allow to be operated, or aid, abet, or assist in the operation of a Mobile Marijuana Dispensary. Ordinance No. 1845 Page 10 "Monitoring" means the continuous and uninterrupted attention to potential alarm signals that could be transmitted from a Security Alarm System located at a MCCC Location, for the purpose of summoning a law enforcement officer to the premises during alarm conditions. "Monitoring Company" means a Person in the business of providing Monitoring services for a MCCC. "Operator" means the Person or Persons who operates as the President, Chief Executive Officer, Chief Administrative Officer, General Manager or such other position or holds such other title, position, or other similar designation with such authority or responsibilities commonly associated with such positions. Each individual Operator must have a Management Permit. "Permittee" means any Person permitted or registered pursuant to this Chapter. "Person" means a natural person, partnership, association, company, corporation, limited liability company, or organization, or a manager, agent, owner, director, servant, officer, or employee thereof; except that "Person" does not include any governmental organization. "Proficiency Testing Samples" means performing the same analyses on the same Samples and comparing results to ensure the Samples are homogenous and stable, and also that the set of Samples analyzed are appropriate to test and display similarities and differences in results. "Propagation" means the reproduction of Medical Cannabis plants by seeds, cuttings or grafting. "Restricted Access Area" means a designated and secure area within a Location in a Medical Cannabis Center where Medical Cannabis and Cannabis-Infused Product are sold, possessed for sale, and displayed for sale, and where no one without a valid patient registry card is permitted. "Sample" means any Medical Cannabis or Cannabis-Infused Product provided for testing or research purposes. "Security Alarm System" means a device or series of devices, intended to summon law enforcement personnel during, or as a result of, an alarm condition. Devices may include hard-wired systems and systems interconnected with a radio frequency method such as cellular or private radio signals that emit or transmit a remote or local audible, visual, or electronic signal; motion detectors, pressure switches, duress alarms (a silent system signal generated by the entry of a designated code into the arming station to indicate that the user is disarming under duress); panic alarms (an audible system signal to indicate an emergency situation); and hold-up alarms (a silent system signal to indicate that a robbery is in progress). "Shipping Container" means any container or wrapping used solely for the transport of Medical Cannabis or Cannabis-Infused Product in bulk. Ordinance No. 1845 Page 11 "State Guidelines" means the Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued August 2008, by the Office of the Attorney General for the State of California, as may be amended from time to time, on file in the Office of the City Clerk. "Support Permit" means a permit for an individual who performs duties that support the MCCC operations. While a Support Permittee must conduct himself or herself professionally, he or she has limited decision making authority and always fall under the supervision of a Management Permittee. Examples of individuals who need this type of permit include, but are not limited to, sales clerks or cooks. "Unrecognizable" means Cannabis or Cannabis plant material rendered indistinguishable from any other plant material. "Vegetation" means the sporophytic state of the Cannabis plant that is a form of asexual I reproduction in plants during which plants do not produce resin or flowers and are bulking up to a desired production size for flowering. 5.35.120 Maximum Number of Medical Cannabis Cooperatives and Collectives. No more than four (4) permitted MCCCs shall be maintained or operated in the City at any time. 5.35.200 Applications. A. General Requirements 1. Prior to initiating operations and as a continuing requisite to conducting operations, the legal representative of the persons wishing to operate a MCCC shall obtain and maintain a permit from the City Manager under the terms and conditions set forth in this Chapter. 2. All applications for permits required pursuant to this Chapter shall be made upon current forms prescribed by the City Manager. Applications submitted to the City Manager may include, but not be limited to, new business premises, transfers of ownership, change of locations, premises modifications, and changes in trade name. 3. All applications for a new MCCC must include application and permitting fees as established by resolution adopted by the City Council as amended from time to time. 4. A permit issued by the City Manager to a MCCC constitutes a revocable privilege. The burden of proving an Applicant's qualifications for a permit rests at all times with the Applicant. 5. If required by the forms supplied by the City Manager, each application shall identify the relevant local jurisdiction. Ordinance No. 1845 Page 12 6. Applicants must submit a complete application to the City Manager before it will be accepted or considered. a. All applications must be complete in every material detail. b. All applications must include all attachments or supplemental information required by the current forms supplied by the City Manager. C. All applications must be accompanied by a full remittance for the whole amount of the application and permit fees. d. The Applicant or its authorized agent must provide a surety bond, if applicable, and prove that all tax returns related to the MCCC have been timely filed; 7. The City Manager may refuse to accept an incomplete application. B. Additional Information May Be Required 1. Each Applicant shall provide any additional information required that the City Manager may request to process and fully investigate the application. The additional information must be provided to the City Manager no later than seven days of the request unless otherwise specified by the City Manager. 2. Nothing in this subsection is intended to limit the City Manager's ability to request additional information the City Manager deems necessary or relevant to determining an Applicant's suitability for a permit or a renewal of a permit under this Chapter. 3. Failure to provide such additional information by the requested deadline may result in denial of the application or renewal or revocation or suspension of a permit. C. Information Must Be Provided Truthfully. All Applicants shall submit information to the City Manager in a full, faithful, truthful, and fair manner. The City Manager may recommend denial of an application where the Applicant made intentional or purposeful misstatements, omissions, misrepresentations, or untruths in the application or in connection with the Applicant's background investigation. This type of conduct may be considered as the basis for additional administrative action against the Applicant and it may also be the basis for criminal charges against the Applicant. D. Application Forms Accessible. All application forms supplied by the City Manager and filed by an Applicant for a permit, including attachments and any other documents associated with the investigation, shall be accessible by the City Manager and any state or local law enforcement agency for a purpose authorized by this Chapter or for any other state or local law enforcement purpose. Ordinance No. 1845 Page 13 E. Other Considerations Regarding MCCC Applications The Applicant, if not an individual, must be comprised of individuals. 1. Whose criminal history background checks establish they are all of Good Moral Character; and 2. Who have met all other permitting requirements. F. Background Checks and Application Review. The City Manager shall conduct a background check of any applicant for a regulatory permit, including any person who is managing or is otherwise responsible for the activities of the MCCC, and any employee, and shall prepare a report on the acceptability of the applicant's background and the suitability of the proposed location. Upon completing the review process, the permit shall be deemed a qualified application subject to the final certification and approval by the City Council pursuant to the allotment process, unless the City Manager finds that the applicant: 1. Has made one or more false or misleading statements, or omissions on the application or during the application process; or 2. The proposed MCCC is not allowed by state or local law, statue, ordinance, or regulation, including this Code, at a particular location. 3. Is not a Primary Caregiver or Qualified Patient or the legal representative of the MCCC; or 4. The applicant, or any person who is managing or is otherwise responsible for the activities of the MCCC, or any employee, if any, has been convicted of a felony, or convicted of a misdemeanor involving moral turpitude, or the illegal use, possession, transportation, distribution or similar activities related to controlled substances, with the exception of marijuana related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. 5. The applicant or any person who is managing or is otherwise responsible for the activities of the MCCC has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. 6. The applicant or any person who is managing or is otherwise responsible for the activities of the MCCC has operated a marijuana dispensary, cooperative, or collective in the City without a permit for a MCCC issued or approved by the City pursuant to the provisions of this Code and refused or failed to comply with any order or instruction of the City to cease such operation. G. Prior Operation Prohibited. An Applicant is prohibited from operating a MCCC or any other marijuana dispensary prior to obtaining all necessary permits or approvals from the City. Ordinance No. 1845 Page 14 5.35.210 Process for Issuing a New Permit for a MCCC. A. General Requirements 9. The City Council shall review and evaluate all qualified applications and will approve issuance of a regulatory permit to the most qualified as determined through the Allotment Process described in this Section. Where the City Council has reviewed qualified applications within two (2) years of any review and allotment process under the provisions of this Section, the City Council may limit its review to one or more of the qualified applications reviewed and considered during such previous Allotment Process. 2. Each Applicant for a new permit, at the time of application, shall fully comply with the requirements of Section 5.35.200, and provide the following information: a. Suitable evidence of proof of lawful presence or residence and Good Moral Character and reputation as required by the current forms prescribed by the City Manager; b. All requested information concerning financial and management associations and interests of other Persons in the business; including the names, mailing addresses, and Operator's background forms of all of its principal officers, directors, and Operators; a copy of its articles of incorporation or articles of organization; and evidence of authorization to do business as a non-profit within the State; C. An estimate of the size of the group of primary caregivers and/or qualified patients who will be served by the non-profit MCCC; this description should include whether delivery service will be provide and the extent of such service. d. The address of the location from which the MCCC for which application is made will be operated; e. Accurate site plan and floor plans for the premises to be permitted denoting all the use of areas on the premises, including storage, cultivation areas, exterior lighting, restrooms, signage, and parking; other tenant spaces if the MCCC is proposed for a multi-tenant building site; f. The deed, lease, contract, or other document governing the terms and conditions of occupancy of the premises permitted or proposed to be permitted. g. A security plan that fully addresses and complies with the provisions of Sections 5.35.330 and 5.35.340 of this Code. h. The name and address of any person who is managing or responsible for the MCCC's activities, and the names and addresses of any employees, if any, and a statement as to whether such person or persons has i Ordinance No. 1845 Page 15 or have been convicted of a cn offense me{s}, the nature of such (s), and the sentence(s) received for such conviction(s). i. The name and address of the owner and lessor of the real property upon which the business is to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a MCCC will be operated on his/her property. j. Authorization for the City Manager to seek verification of the information contained within the application. k. Evidence that the MCCC is organized as a bona fide non-profit cooperative, affiliation, association, or collective of persons comprised exclusively and entirely of qualified patients and the primary caregivers of those patients in strict accordance with the Compassionate Use Act. 1. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct. M. Any such additional and further information as is deemed necessary by the City Manager to administer this Section. 3. Based on the information set forth in the application and the City Manager's report, the City Manager, or the City Council pursuant to the allotment process, may impose reasonable terms and conditions on the proposed operations in addition to those specified in this Section. A regulatory permit issued pursuant to this Section is not transferable. B. Application Review Allotment Process. 1. The City Manager will accept and review applications for MCCCs during the Application Period. 2. in the event there is no more than one qualified application for each unallocated permit for a MCCC as allowed under Section 5.35.120 determined to be conditionally qualified by the City Manager, the City Manager shall refer each such application to the City Council with a recommendation that the City Council approve the issuance of a permit to the applicants, subject to full compliance with the provisions of this Chapter and any conditions of approval. 3. In the event there is more than one application submitted for each unallocated regulatory permit for a MCCC as allowed under Section 5.35.120 during the Application Period, the City Manager shall submit the qualified applications and the City Manager report on each application to the City Council for review and consideration. The qualified applications shall be considered concurrently by the City Council at a public hearing noticed and conducted pursuant to the provisions of Section 94.02.00.0 of this Code. Ordinance No, 1845 Page 16 4. The City Council shall consider the qualified applications after evaluating the applications on their respective merits and the City Council may conditionally approve each qualified application or deny one or more of such applications if the Council makes one or more of the findings listed in Subsection F of Section 5.35,200. The City Council shall rank all qualified applications in order of those that best satisfy the requirements of this Section and provide the highest level of service and opportunities for residents of Palm Springs. The highest ranked qualified application equal to the number of available regulatory permits shall be granted regulatory permits pursuant to this Section. C. Operations Covenant. The obligations of the MCCC, including all on-going and continuing obligations required pursuant to any provision of this Chapter or as may be provided in any conditional approval of the City Manager or the City Council, shall be set forth in a covenant running with the land or the leasehold interest, approved as to form by the City Attorney, and enforceable by the City. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, and expressly does not waive sovereign immunity, with respect to medical cannabis, or for the activities of any MCCC. The Covenant shall also contain the Continuing Obligations and Responsibilities as provided in this Section and the following terms: 1. Agree to indemnify the City; 2. Carry insurance in the amounts and of the types that are acceptable to the City Manager; 3. Name the City as an additional insured; 4. Agree to defend at its sole expense, any action against the City, its agents, officers, and employees because of the issues of such approval; 5. Agree to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder. D. Continuing Obligations and Responsibilities. No persons shall engage in, conduct, or be permitted to engage in or conduct a MCCC unless each of the following requirements is continually met: 1. The MCCC shall comply fully with all of the applicable restrictions and mandates set forth in state law, including without limitation the State Guidelines. 2. The MCCC shall only be open between the hours of 9:00 a.m. and 7:00 p.m. 3. Physician's referrals shall be verified by the MCCC prior to inclusion into the MCCC and at least every six months thereafter. Ordinance No. 1845 Page 17 4. Each member of the MCCC shall be a patient or a qualified primary caregiver. The cooperative shall maintain patient records in a secure location within the City of Palm Springs, available to the City Manager to review upon demand. Such records shall include without limitation a copy of the physician's referral and, if using a primary caregiver, a notarized written authorization from the patient to be represented by such primary caregiver. 5. Cannabis shall be kept in a secured manner during business and nonbusiness hours. 6. Each MCCC that prepares, dispenses, or in any manner distributes Edible Cannabis-Infused Product must comply with the provisions of all relevant State and local laws regarding the preparation, distribution, and sale of product. 7. Each MCCC must pay any applicable sales tax pursuant to federal, state, and local law. 8. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited on the premises of the MCCC. The term "premises" as used in this Subsection includes the actual building, as well as any accessory structures and parking areas. The building entrance to a MCCC shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming marijuana on the premises or in the vicinity of the MCCC is prohibited. 9. Signage for the MCCC shall be limited to name of business and its status as a permitted MCCC pursuant to this Section only and no advertising of the goods and/or services shall be permitted. Each MCCC shall post a sign or notice conspicuously at each point of public access into the MCCC stating that the MCCC is a permitted MCCC under the provisions of this Chapter. 10. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. A MCCC shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. in addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of the cooperative or collective. 11. Except as provided in Subsection G-4, windows and/or entrances shall not be obstructed and must maintain a clear view into the premises during business hours. 12. No one under eighteen (18) years of age shall be a member of a MCCC without written authorization of a parent or legal guardian. 13. Issuance of physician recommendations or prescriptions for cannabis or marijuana use shall not be performed or provided on the premises. 14. The building in which the MCCC is located as well as the operations as conducted therein shall fully comply with all applicable rules, regulations, and laws Ordinance No. 1845 Page 18 including, but not limited to, zoning and building codes, the City's business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the Compassionate Use Act. 15. The MCCC shall not distribute, sell, dispense, or administer cannabis to anyone other than qualified patient members of the MCCC and their primary caregivers. 16. A MCCC shall distribute only cannabis cultivated on the premises or by a member of the MCCC or the member's primary caregiver. The MCCC shall do an inventory on the first business day of each month and shall record the total quantity of each form of cannabis on the premises. These records shall be maintained for two (2) years from the date created. 17. Provide the City Manager with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom one can provide notice if there are operating problems associated with the MCCC. The MCCC shall make every good faith effort to encourage residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the police or planning departments. 18. Nothing in this Section prohibits a Permittee from refusing to sell Medical Cannabis or Cannabis-Infused Product to a patient. 19. A MCCC shall not display Medical Cannabis and Cannabis-Infused Product in a manner in which Medical Cannabis or Cannabis-Infused Product can be seen from outside the Location. Storage of Medical Cannabis and Cannabis-Infused Product shall otherwise be maintained in restricted access areas. 20. An MCCC shall not sell any expired Cannabis-Infused Product. 21. Each Permittee shall consent and allow the City Manager to cause medical cannabis and cannabis-infused product at the Location to be tested and examined as provided in this Chapter. 22. Fully comply with and meet all operating criteria required pursuant to the Compassionate Use Act, state law, the State General Guidelines, the provisions of the Palm Springs Municipal Code, including without limitation, this Section, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit, and all requirements set forth in the covenant as described in Subsection J, in order to ensure that the operation of the MCCC is consistent with the protection of the health, safety, and welfare of the community, qualified patients, and primary caregivers, and will not adversely affect surrounding uses. Ordinance No. 1845 Page 19 5.35.220 Process for Renewing a MCCC Permit. A. General Process for Permit Renewal 1. A Permittee may apply for the renewal of an existing permit no less than 30 days prior to the permit's expiration date. If the Permittee files a renewal application within 30 days prior to expiration, the Permittee must provide a written explanation detailing the circumstances surrounding the late filing. If the City Manager accepts the application, then the City Manager may elect to administratively continue the permit beyond the expiration date while the City Manager completes the renewal permitting process. 2. An application for renewal will only be accepted if it is accompanied by the requisite permitting fees. 3. Each application for renewal shall fully comply with the requirements of Section 5.35.200. 4. Operator must be fingerprinted each year at renewal. B. If Permit Not Renewed Before Expiration. A permit is immediately invalid upon expiration if the Permittee has not filed a timely renewal application and remitted all of - the required fees. In the event the permit is not renewed prior to expiration, the affected MCCC shall not operate. 5.35.230 Changes in Governance of Permitted Entities. A. General Requirements 1. All applications for Changes in Governance of a permitted MCCC authorized pursuant to this Chapter, shall be made upon current forms prescribed by the City Manager and shall fully comply with the provisions of Section 5.35.200, 2. All applications for Changes in Governance of permitted MCCC must include application fees and be complete in every material detail. 3. Each application for a Change in Governance shall provide suitable evidence of a Person's proof of lawful presence and/or residence and good character and reputation that the City Manager may request. Each application shall also provide all requested information concerning financial and management associations and interests of other Persons in the business, tax payment information, proof of good and sufficient surety bond, and the deed, lease, contract, or other document governing the terms and conditions of occupancy of the Location. Nothing in this section is intended to limit the City Manager's ability to request additional information the City Manager deems necessary or relevant to determining suitability for approval of a Change in Governance. 4. Failure to provide such additional evidence by the requested deadline may result in denial of the application. i Ordinance No. 1845 Page 20 B. Approval Required. It shall be considered a permit violation affecting public safety if a Permittee engages in any transfer of ownership without prior approval from the City Manager. 5.35.240 Complete Applications Required for Certain Individuals. A. General Requirements 1. All applications for individual permits as provided in this Section shall be made upon current forms prescribed by the City Manager. Applications submitted to the City Manager may include, but not be limited to, Management Permits. 2. An individual permit issued pursuant to this Chapter constitutes a revocable privilege. The burden of proving an Applicant's qualifications for an individual permit rests at all times with the Applicant. 3. Applicants must submit a complete current application to the City Manager before it will be accepted or considered. a. All applications must be complete in every material detail. b. All applications must include all attachments or supplemental information required by the forms supplied by the City Manager. C. All applications must be accompanied by a full remittance for the whole amount of the application, permit, or other relevant fees. 4.The City Manager may refuse to accept an incomplete application. B. Additional Information May Be Required 1. Each Applicant shall provide any additional information required that the City Manager may request to process and fully investigate the application. 2. An Applicant's failure to provide the requested evidence or information by the City Manager deadline may be grounds for denial. The additional information must be provided to the City Manager no later than seven days of the request unless otherwise specified by the City Manager. Each Applicant shall provide any additional information required that the City Manager may request to process and fully investigate the application. C. Application Forms Accessible. All application forms supplied by the City Manager and fled by an Applicant for a permit, including attachments and any other documents associated with the investigation, shall be accessible by the City Manager, local permitting authorities, and any state or local law enforcement agency, for a purpose authorized by this Chapter or for any other state or local law enforcement purpose. D. General Requirements. Ordinance No. 1845 Page 21 1. All Applicants shall submit information to the City Manager in a full, faithful, truthful, and fair manner. The City Manager may recommend denial of an application where the Applicant made intentional misstatements, purposeful omissions, misrepresentations, or untruths in the application or in connection with the Applicant's background investigation. This type of conduct may be considered as the basis of additional administrative action against the Applicant and it may also be the basis for criminal charges against the Applicant. 2. The City Manager may deny the application of an Applicant who fails to provide the requested evidence or information by the City Manager's deadline. E. Fingerprints Required 1. All Applicants for initial individual permits shall be fingerprinted for a fingerprint-based criminal history record check. 2. A renewal Applicant shall be fingerprinted at the City Manager's discretion. 3. An Applicant shall also be fingerprinted if the City Manager has required the Applicant to submit a new application. The City Manager may require a new application for the following non-exhaustive list of reasons: a. An Applicant is re-applying after more than one year since the expiration of his or her most recent permit; b. If an Applicant's previous permit was denied or revoked by the City Manager; or C. When the City Manager needs additional information in order to proceed with a background investigation. F. Other Documents May Be Required. Any Applicant may be required to establish his or her identity and age by any document required for a determination of lawful presence. G. Maintaining Ongoing Suitability For Permit: Duty_to Report Offenses. An Applicant or Permittee shall notify the City Manager in writing of any felony criminal charge and felony conviction against such person within ten days of such person's arrest, felony summons, and within ten days of the disposition of any arrest or summons. Failure to make proper notification to the City Manager may be grounds for disciplinary action. Permittees shall cooperate in any investigation conducted by the City Manager. This duty to report includes, but is not limited to, deferred sentences or judgments that are not sealed. If the City Manager lawfully finds a disqualifying event and an Applicant asserts that the record was sealed, the City Manager may require the Applicant to provide proof from a court evidencing the sealing of the case. H. Application Forms Accessible to Law Enforcement and Licensing Authorities. All completed application forms supplied by the City Manager and filed by an Applicant for Ordinance No. 1845 Page 22 permit shall be accessible by the City Manager and any state or local law enforcement agent. I. Management Permits/Operators. An Operator Applicant for a Management Permit must meet the following criteria before receiving a permit: 1. The Applicant must pay the annual application and permitting fees; 2. The Applicant's criminal history must indicate that he or she is of Good Moral Character; 3. The Applicant is not employing, or financed in whole or in party by any other Person whose criminal history indicates that he or she is not of Good Moral Character; 4. The Applicant is at least 21 years of age; 5. The Applicant has paid all taxes, interest, or penalties due the City Manager relating to a MCCC; 6. The Applicant can prove that he or she has not discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date; 7. The Applicant can prove that he or she has not discharged a sentence in the five years immediately preceding the application date for a conviction of a felony not related to possession, distribution, manufacturing, cultivation, or use of an illegal substance; 8. The Applicant can prove that he or she has not been convicted at any time of a felony pursuant to any state or federal law regarding the possession, distribution, manufacturing, cultivation, or use of an illegal substance; 9. The Applicant can establish that he or she is not a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the City Manager or a local permitting authority; 10. The Applicant can establish that the premises proposed to be permitted is not currently permitted as a retail food establishment or wholesale food registrant. 5.35.250 Permittee Required to Keep Mailing Address Current with the City Manager. A. Timing of Notification. A Permittee shall inform the City Manager in writing of any change to its mailing address within 30 days of the change. The City Manager will not change a Permittee's information without explicit written notification provided by the Permittee or its authorized agent. B. City Manager Communications. City Manager communications are sent to the last mailing address furnished by an Applicant or a Permittee to the City Manager. Ordinance No_ 1845 Page 23 C. Failure to Change Address Does Not Relieve Permittee's or Applicant's Obligation. Failure to notify the City Manager of a change of mailing address does not relieve a Permittee or Applicant of the obligation to respond to a City Manager communication. D. Application and Disciplinary Communications. The City Manager will send any application, disciplinary or sanction communication, as well as any notice of hearing, to the last mailing address furnished to the City Manager by the Permittee or Applicant. 5.35.260 Length of Permit. A. MCCC Permit. All MCCC Permits and Individual Permits are valid for one year. B. Permit May Be Valid for Less Than Full Term. A Permit may be valid for less than the applicable permit term if revoked, suspended, voluntarily surrendered, or otherwise disciplined. 5.35.270 Possession of Location. A. Evidence of Lawful Possession. Persons permitted pursuant to the provisions of this Chapter or those making application for such permits, must demonstrate proof of lawful possession of the Location. Evidence of lawful possession consists of properly executed deeds of trust, leases, or other written documents acceptable to the City Manager. B. Relocation Prohibited. The Location shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful possession. Permittees are not authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the City Manager. Permittees shall not add additional contiguous units or areas, thereby altering the initially-approved premises, without filing an Application to modify the Location on current forms prepared by the City Manager, including any applicable processing fee as provided in Section 5.35.280. C. Subletting Not Authorized. Permittees are not authorized to sublet any portion of a Location for any purpose, unless all necessary applications to modify the existing Location to accomplish any subletting have been approved by the City Manager. 5.35.280 Changing, Altering, or Modifying Location. A. Application Required to Alter or Modify Premises. After issuance of a permit, the Permittee shall not make any physical change, alteration, or modification of the Location that materially or substantially alters the Location or the usage of the Location from the plans originally approved, without the prior written approval of the City Manager. The Permittee whose premises are to be materially or substantially changed is responsible for filing an application for approval on current forms provided by the City Manager. Ordinance No. 1845 Page 24 B. What Constitutes a Material Change. Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following: 1. Any increase or decrease in the total physical size or capacity of the Location; 2. The sealing off, creation of or relocation of a common entryway, doorway, passage or other such means of public ingress andlor egress, when such common entryway, doorway or passage alters or changes limited access areas, such as the cultivation, harvesting, manufacturing, or sale of Medical Cannabis or Cannabis-Infused Product within the Location; 3. Within a Location, the permanent addition of a separate sales counter that creates an additional point-of-sale location, and the permanent addition of a display case, all of which would require the installation of additional video surveillance cameras; 4. The installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage to enhance cultivation activities. C. Attachments to Application. The City Manager may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the Permittee, and payment of any applicable fee. The Permittee must submit all information requested by the City Manager including but not limited to, documents that verify the following: 1. The Permittee will continue to have possession of the premises, as changed, by ownership, lease, or rental agreement; and 2. The proposed change conforms to any and all City restrictions related to the time, manner, and place of MCCC regulation. 5.35.300 Security Plan. A. General Security Requirements 1. Security cameras shall be installed and maintained in good working condition, and used in an on-going manner with at least 240 continuous hours of digitally recorded documentation in a format approved by the City Manager. The cameras shall be in use 24 hours per day, 7 days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, cultivation areas, all doors and windows, and any other areas as determined by the City Manager. 2. The lease/business space shall be alarmed with a reliable, commercial alarm system that is operated and monitored by a security company or alarm business that is operating in full compliance with Chapter 5.02 of this Code. Ordinance No. 1845 Page 25 3. Entrance to the dispensing area and any storage areas shall be locked at all times, and under the control of MCCC staff. 4. The business entrance(s) and all window areas shall be illuminated during evening hours. The applicant shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, shielding, etc., and secure the necessary approvals and permits as needed. 5. All windows on the building that houses the MCCC shall be appropriately secured and all marijuana securely stored. B. Security Alarm Systems — Minimum Requirements 1. Each Location shall have a Security Alarm System, installed by an Alarm Installation Company, on all perimeter entry points and perimeter windows. 2. Each Permittee must ensure that its Location is continuously monitored. Permittees may engage the services of a Monitoring Company to fulfill this requirement. 3. The Permittees shall maintain up to date and current records and existing contracts on the Location that describe the location and operation of each Security Alarm System, a schematic of security zones, the name of the Alarm Installation Company, and the name of any Monitoring Company, 4. Upon request, Permittees shall make available to the City Manager or any state or local law enforcement agency, for a purpose authorized by this Chapter or any state or local law enforcement purpose, all information related to Security Alarm Systems, Monitoring, and alarm activity. C. Lock Standards — Minimum Requirement. At all points of ingress and egress, the Permittee shall ensure the use of a commercial-grade, nonresidential door locks. 5.35.310 Video Surveillance. A. Minimum Requirements The following video surveillance requirements shall apply to all MCCC: 1. Prior to exercising the privileges of a MCCC, an Applicant must install fully operational video surveillance and camera recording system. The recording system must record in digital format and meet the requirements outlined in this Section. 2. All video surveillance records and recordings must be stored in a secure area that is only accessible to a Permittee's management staff. 3. Video surveillance records and recordings must be made available upon request to the City Manager or any other state or local law enforcement agency for a purpose authorized by this Chapter or for any other state or local law enforcement purpose. Ordinance No. 1845 Page 26 4. Video surveillance records and recordings of point-of-sale areas shall be held in confidence by all employees and representatives of the City Manager, except that the City Manager may provide such records and recordings to any other state or local law enforcement agency for a purpose authorized by this Chapter or for any other state or local law enforcement purpose. 5. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than 12 inches wide and 12 inches long, composed of letters not less than one inch in height, stating "Ail Activities Monitored by Video Camera" or "These Premises Are Being Digitally Recorded" or otherwise advising all persons entering the MCCC that a video surveillance and camera recording system is in operation at the MCCC and recording all activity as provided in this Section. B. Video Surveillance Equipment 1. Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the recording requirements described in this rule, video monitors, digital archiving devices, and a color printer capable of delivering still photos. 2. All video surveillance systems must be equipped with a failure notification system that provides prompt notification to the Permittee of any prolonged surveillance interruption and/or the complete failure of the surveillance system. 3. Permittees are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored areas. 4. All video surveillance equipment shall have sufficient battery backup to support a minimum of four hours of recording in the event of a power outage. C. Placement of Cameras and Required Camera Coverage 1. Camera coverage is required for all Limited Access Areas, point-of-sale areas, security rooms, all points of ingress and egress to Limited Access Areas, all areas where Medical Cannabis or Cannabis-Infused Product is displayed for sale, and all points of ingress/egress to the exterior of the Location. 2. Camera placement shall be capable of identifying activity occurring within 20 feet of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the Location. 3. At each point-of-sale location, camera coverage must enable recording of the patients, caregiver or customer(s) and employee(s) facial features with sufficient clarity to determine identity. 4. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points. Ordinance No. 1845 Page 27 5. The system shall be capable of recording all pre-determined surveillance areas in any lighting conditions. If the Location has a Medical Cannabis cultivation area, a rotating schedule of lighted conditions and zero-illumination can occur as long as ingress and egress points to Flowering areas remain constantly illuminated for recording purposes. 6. Areas where Medical Cannabis is grown, tested, cured, manufactured, or stored shall have camera placement in the room facing the primary entry door at a height which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment. 7_ Cameras shall also be placed at each location where weighing, packaging, transport, preparation, or tagging activities occur. 8. At least one camera must be dedicated to record the access points to the secured surveillance recording area. 9. All outdoor cultivation areas must meet the same video surveillance requirements applicable to any other indoor Limited Access Areas. D. Location and Maintenance of Surveillance Equipment 1. Surveillance recording equipment must be housed in a designated, locked and secured room or other enclosure with access limited to authorized employees, agents of the City Manager, state or local law enforcement agencies for a purpose authorized by this Chapter or for any other state or local law enforcement purpose, and service personnel or contractors. 2. Permittees must keep a current list of all authorized employees and service Personnel who have access to the surveillance system and/or room on the Location. Permittees must keep a surveillance equipment maintenance activity log on the Location to record all service activity including the identity of the individual(s) performing the service, the service date and time and the reason for service to the surveillance system. 3. Off-site Monitoring and video recording storage of the Location by the Permittee or an independent third-party is authorized as long as standards exercised at the remote location meets or exceeds all standards for on-site Monitoring. 4. Each Medical Cannabis Location located in a common or shared building must have a separate surveillance room/area that is dedicated to that specific Location. Commonly-owned MCCC located in the same local jurisdiction may have one central surveillance room located at one of the commonly owned Location which simultaneously serves all of the commonly-owned MCCC. The facility that does not house the central surveillance room is required to have a review station, printer, and map of camera placement on the premises. All minimum requirements for equipment and security standards as set forth in the section apply to the review station. 39 Ordinance No. 1 845 Page 28 E. Video Recording and Retention Reguirements 1. All camera views of all Limited Access Areas must be continuously recorded 24 hours a day. 2. All surveillance recordings must be kept for a minimum of 10 days and be in a format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as legitimately-captured video and guarantees that no alteration of the recorded image has taken place. 3. The Permittee's surveillance system or equipment must have the capabilities to produce a color still photograph from any camera image, live or recorded, of the Location. 4. The date and time must be embedded on all surveillance recordings without significantly obscuring the picture. The date and time must be synchronized with any point-of-sale system. 5. Time is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U.S. Naval Observatory at: http://www.time.gov/timezone.cgi?Mountain/d/-7/lava. 6. After the 10 day surveillance video retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to being discarded or disposed of for any other purpose. Surveillance video recordings may not be destroyed if the Permittee knows or should have known of a pending criminal, civil, or administrative investigation or any other proceeding for which the recording may contain relevant information. F. Other Records 1. All records applicable to the surveillance system shall be maintained on the Location. At a minimum, Permittees shall maintain a map of the camera locations, direction of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list and operating instructions for the surveillance equipment. 2. A chronological point-of-sale transaction log must be made available to be used in conjunction with recorded video of those transactions. 5.35.320 Waste Disposal. A. All Applicable Laws Apply. Medical Cannabis and Cannabis-Infused Product waste must be stored, secured, and managed in accordance with all applicable state and local statutes, regulations, ordinances or other requirements. B. Liquid Waste. Liquid waste from MCCC shall be disposed of in compliance the applicable Water Quality Control statutes and regulations. Ordinance No_ 1845 Page 29 C. Hazardous Waste. Disposal of hazardous and chemical waste must be conducted in a manner consistent with federal, state and local laws. D. Waste Must Be Made Unusable and Unrecognizable. Medical Cannabis and Cannabis-Infused Product waste must be made unusable and unrecognizable prior to leaving the Location. 5.35.330 Health and Safety Regulations. A. Local Safety Inspections. Permittees may be subject to inspection of the MCCC by the Fire Marshall, Building Official, or any code enforcement officer to confirm that no health or safety concerns are present. Inspection may result in the City Manager's formulation, adoption, and implementation of additional specific standards related to the cultivation, packaging, storage, display, or dispensing of Medical Cannabis. An annual fire safety inspection may result in the required installation of fire suppression devices, or other means necessary for adequate fire safety. B. Sanitary Conditions. The Permittee shall take all reasonable measures and precautions to ensure the following: 1. That any person who, by medical examination or supervisory observation, is shown to have, or appears to have, an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal source of microbial contamination for whom there is a reasonable possibility of contact with Medical Cannabis and Cannabis-Infused Product shall be excluded from any operations which may be expected to result in contamination until the condition is corrected; 2. That hand-washing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Hand-washing facilities shall be located in the Location and where good sanitary practices require employees to wash or sanitize their hands, and provide effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying devices; 3. That all persons working in direct contact with Medical Cannabis and Cannabis-Infused Product shall conform to hygienic practices while on duty, including but not limited to: a. Maintaining adequate personal cleanliness; b. Washing hands thoroughly in an adequate hand-washing area(s) before starting work and at any other time when the hands may have become soiled or contaminated; and C. Refraining from having direct contact with Medical Cannabis and Cannabis-Infused Product if the person has or may have an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal source of microbial contamination, until such condition is corrected. 52 Ordinance No. 1845 Page 30 4. That litter and waste are properly removed and the operating systems for waste disposal are maintained in an adequate manner so that they do not constitute a source of contamination in areas where Medical Cannabis and Cannabis-Infused Product are exposed; 5. That floors, walls, and ceilings are constructed in such a manner that they may be adequately cleaned and each is kept clean and in good repair; 6. That there is adequate lighting in all areas where Medical Cannabis and Cannabis-Infused Product are stored or sold, and where equipment or utensils are cleaned; 7. That the Permittee provides adequate screening or other protection against the entry of pests. Rubbish shall be disposed of so as to minimize the development of odor and minimize the potential for the waste becoming an attractant, harborage, or breeding place for pests; 8. That any buildings, fixtures, and other facilities are maintained in a sanitary condition; 9. That toxic cleaning compounds, sanitizing agents, and other potentially harmful chemicals are identified, held, and stored in a manner that protects against contamination of Medical Cannabis and Cannabis-Infused Product and in a manner that is in accordance with any applicable local, state, or federal law, rule, regulation or ordinance; 10. That each Medical Cannabis Center provides its employees with adequate and readily accessible toilet facilities that are maintained in a sanitary condition and good repair; and 11. That Medical Cannabis and Cannabis-Infused Product that can support the rapid growth of undesirable microorganisms are held in a manner that prevents the growth of these microorganisms. 5.35.340 Cultivation Operation: Health and Safety Regulations. A. Local Safety Inspections. A MCCC may engage in cultivation operations at its Location and shall be subject to inspection of its Location by the City Manager or Code Enforcement Officer to confirm that no health or safety concerns are present. The inspection could result in additional specific standards to meet local permitting authority restrictions related to Medical Cannabis or other local businesses. An annual fire safety inspection may result in the required installation of fire suppression devices, or other means necessary for adequate fire safety. B. General Sanitary Requirements. An Optional Premises Cultivation Operation shall take all reasonable measures and precautions to ensure the following: 1. That any person who, by medical examination or supervisory observation, is shown to have, or appears to have, an illness, open lesion, including boils, sores, or Ordinance No. 1845 Page 31 infected wounds, or any other abnormal source of microbial contamination for whom there is a reasonable possibility of contact with Medical Cannabis shall be excluded from any operations which may be expected to result in such contamination until the condition is corrected; 2. That all persons working in direct contact with Medical Cannabis shall conform to hygienic practices while on duty, including but not limited to: a. Maintaining adequate personal cleanliness; b. Washing hands thoroughly in an adequate hand-washing area(s) before starting work and at any other time when the hands may have become soiled or contaminated, C. Hand-washing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Hand-washing facilities shall be located in the Location and where good sanitary practices require employees to wash and/or sanitize their hands, and provide effective hand- cleaning and sanitizing preparations and sanitary towel service or suitable drying devices; and d. Refraining from having direct contact with Medical Cannabis if the person has or may have an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal source of microbial contamination, until such condition is corrected. 3. That litter and waste are properly removed and the operating systems for waste disposal are maintained in an adequate manner so that they do not constitute a source of contamination in areas where Medical Cannabis is exposed; 4. That floors, walls, and ceilings are constructed in such a manner that they may be adequately cleaned and kept clean and kept in good repair; 5. That there is adequate lighting in all areas where Medical Cannabis is stored and where equipment or utensils are cleaned; 6. That the Permittee provides adequate screening or other protection against the entry of pests. Rubbish shall be disposed of so as to minimize the development of odor and minimize the potential for the waste becoming an attractant, harborage, or breeding place for pests; 7. That any buildings, fixtures, and other facilities are maintained in a sanitary condition; 8. That toxic cleaning compounds, sanitizing agents, solvents used in the production of Medical Cannabis concentrates, and pesticide chemicals shall be identified, held, and stored in a manner that protects against contamination of Medical Ordinance No. 1845 Page 32 Cannabis, and in a manner that is in accordance with any applicable local, state, or federal law, rule, regulation, or ordinance; 9. That all contact surfaces, including utensils and equipment used for the preparation of Retail Cannabis or Retail Cannabis Product, shall be cleaned and sanitized as frequently as necessary to protect against contamination. Equipment and utensils shall be so designed and of such material and workmanship as to be adequately cleanable, and shall be properly maintained. Only sanitizing agents registered with the Environmental Protection Agency shall be used in Retail Cannabis Products Manufacturing Facilities and used in accordance with labeled instructions; 10. That the water supply shall be sufficient for the operations intended and shall be derived from a source that is a regulated water system. Private water supplies shall be derived from a water source that is capable of providing a safe, potable, and adequate supply of water to meet the facility's needs; 11. That plumbing shall be of adequate size and design and adequately installed and maintained to carry sufficient quantities of water to required locations throughout the plant and that shall properly convey sewage and liquid disposable waste from the facility. There shall be no cross-connections between the potable and waste water lines; 12. That all operations in the receiving, inspecting, transporting, segregating, preparing, manufacturing, packaging, and storing of Retail Cannabis or Retail Cannabis Product shall be conducted in accordance with adequate sanitation principles; 13. That each Optional Premises Cultivation Operation shall provide its employees with adequate and readily accessible toilet facilities that are maintained in a sanitary condition and good repair; and 14. That Medical Cannabis that can support the rapid growth of undesirable microorganisms shall be held in a manner that prevents the growth of these microorganisms. 5.35.500 Mobile Marijuana Dispensaries. A. Mobile Marijuana Dispensaries Prohibited. Mobile Marijuana Dispensaries are prohibited in the City. No person shall locate, operate, own, suffer, allow to be operated, or aide, abet, or assist in the operation of any Mobile Marijuana Dispensary within the City. B. Marivana Delivery Prohibited. 1. No Person shall deliver marijuana or medical cannabis to any location within the City from a Mobile Marijuana Dispensary, regardless of where the Mobile Marijuana Dispensary is located, or engage in any Operation for this purpose. 2. No Person shall deliver any Cannabis-Infused Product or marijuana- infused product to any location within the City from a Mobile Marijuana Dispensary, Ordinance No_ 1845 Page 33 regardless of where the Mobile Marijuana Dispensary is located, or engage in any Mobile Operation for this purpose. C. Public Nuisance Declared. Operation of any Mobile Marijuana Dispensary within the City in violation of the provisions of this chapter is hereby declared a public nuisance and shall be abated pursuant to all available remedies. E. Exceptions. The provisions of this Section shall not apply to any MCCC that has a permit from the City pursuant to, and is operating in full compliance with, this Chapter and Section 93.23.15 of this Code, subject to the restrictions contained in this Subsection. 1. The transport of Medical Cannabis and Cannabis-Infused Product shall be conducted by a motor vehicle that is properly registered in the state of California pursuant to motor vehicle laws, but need not be registered in the name of the Permittee. 2. Transport of Medical Cannabis or Cannabis-infused Product shall be accompanied by documents identifying the originating MCCC, the driver's valid motor vehicle operator's permit, and all required vehicle registration information. 5.35.600 Maintenance of Business Records. A. General Requirements. 1. A MCCC must maintain the information required in this Section in a format that is readily understood by a reasonably prudent business person. 2. Each MCCC shall retain all books and records necessary to fully account for each transaction conducted under its permit for the current year and three preceding calendar years. The MCCC's books and records (or complete copies of such records) must be maintained on its Location at all times. 3. The books and records must fully account for all transactions of the MCCC and must include, but shall not be limited to: a. Current Employee List - This list must provide the full name and relevant identification information of each employee and all non-employee Operators, who work at a MCCC. b. Secure Facility Information - For its Location, a MCCC must maintain the business contact information for vendors that maintain video surveillance systems and Security Alarm Systems. C. Location - Diagram of the entire premises. d. Visitor Log - List of all visitors entering Limited Access Areas or Restricted Access Areas. e. All records normally retained for tax purposes. Ordinance No. 1845 Page 34 B. Loss of Records and Data. Any loss of electronically-maintained records shall not be considered a mitigating factor for violations of this rule. Permittees are required to exercise due diligence in preserving and maintaining all required records. i C. Violation Affecting Public Safety. Violation of this rule may constitute a permit violation affecting public safety. D. _Records Related to Inventory Tracking. A MCCC must maintain accurate and comprehensive inventory tracking records that account for, reconcile, and evidence all inventory activity for Medical Cannabis from either seed or Immature Plant stage until the Medical Cannabis or Cannabis-Infused Product is destroyed or sold to another MCCC or a patient. E. Records Related to Transport. A MCCC must maintain adequate records for the transport of all activities related to Medical Cannabis and Cannabis-Infused Product. See Rule M 801 —Transport of Medical Cannabis or Cannabis-Infused Product. F. Provision of Requested Records to the City Manager . A Permittee must provide on-demand access to on-premises records following a request from the City Manager during normal business hours or hours of apparent operation, and must provide access to off-premises records within three business days following a request from the City Manager. G. Obligations Concurrent with Obligations Under Chapter 3.35. Nothing in this Section shall relieve the MCCC and the Operator from any requirement under Chapter 3.35 of this Code. 5.35.610 Independent Audit May Be Required. A. City Manager May Require Independent Audit 1. When the City Manager deems it necessary, the City Manager may require a MCCC to undergo an audit by an independent accountant. The scope of the audit may include, but need not be limited to, financial transactions and inventory control measures. 2. In such instances, the City Manager may attempt to mutually agree upon the selection of the independent accountant with a MCCC. However, the City Manager always retains the right to select the independent accountant regardless of whether a mutual agreement can be reached. The independent accountant shall be a certified public accountant licensed by, and in good standing with, the State of California State Board of Accountancy. 3. The MCCC will be responsible for all direct costs associated with the independent audit. B. When Independent Audit Is Necessal. The City Manager has discretion to determine when an audit by an independent accountant is necessary. The following is a non-exhaustive list of examples that may justify an independent audit: Ordinance No. 1845 Page 35 1. A MCCC does not provide requested records to the City Manager; 2. The City Manager has reason to believe that the MCCC does not properly maintain its business records; 3. A MCCC has a prior violation related to recordkeeping or inventory control; 4. A MCCC has a prior violation related to diversion. 5. As determined by the City Manager, the scope of an audit conducted by the City Manager would be so extensive as to jeopardize the regular duties and responsibilities of the City's Department of Finance. 6. To ensure compliance with any provision of this Code, including without limitation, the provisions of this Chapter and Chapter 3.35. C. Compliance Required. A MCCC must pay for and timely cooperate with the City Manager's requirement that it undergo and audit in accordance with this Section. D. Violation Affecting Public Safety. Failure to comply with this rule may constitute a permit violation affecting public safety. 5.35.620 Manager Change Must Be Reported. A. When Required. A MCCC shall provide the City Manager a written report within seven days after any change in Manager of the MCCC occurs. B. Permittee Must Maintain Record of Reported Change, A MCCC must also maintain a copy of this written report with its business records. C. Consequence of Failure to Report. Failure to report a change in a timely manner may result in discipline pursuant to this Chapter. 5.35.700 Labeling, Packaging, and Product Safety. A. General Requirements. The dispensing or sale of Medical Cannabis to a patient or a patient's caregiver is prohibited unless previously placed within a Container by a MCCC. The Container must be designed to ensure that the contents are secure and are Child-Resistant. B. Labeling Required, All Medical Cannabis and Cannabis-Infused Product dispensed, sold, transferred, or otherwise provided to a patient or a patient's caregiver must be in a Container that is labeled in a manner consistent with the provisions of this Section. Ordinance No. 1845 Page 36 1. Labeling text on a Container may not make any false or misleading statements regarding health or physical benefits to the patient 2. Labeling text on a Container must be no smaller than 1116 of an inch. 3. Labeling text on a Container must be clearly written or printed and in the English language. 4. Labeling text on a Container must be unobstructed and conspicuous. A Permittee may affix multiple labels to a Container, provided that none of the information required by these rules is completely obstructed. 5. No Permittee shall dispense, sell, transfer, or give away any Medical Cannabis that does not contain a Label with a list of all ingredients, including all chemical additives, including but not limited to nonorganic pesticides, herbicides, and fertilizers that were used in its cultivation and production. The label must also list a complete list of solvents and chemicals used in the creation of any Medical Cannabis concentrate. D. Cannabis-Infused Product — Child-Resistant Packaging The sale of a Cannabis- Infused Product is prohibited unless: 1. The Cannabis-Infused Product has previously been placed within a Container by Cannabis-Infused Products Manufacturer. The Container must be designed or constructed to be significantly difficult for children under five years of age to open and not difficult for_ normal adults to use properly and that does not allow the product to be seen without opening the packaging material; or 2. The Cannabis-Infused Product has previously been placed in packaging that is labeled "Medicinal product - keep out of reach of children." E. Cannabis-infused Product Container Labeling Must Include the Following Information: 1. The following statement: "This product is contains medical Cannabis and was produced without regulatory oversight for health, safety or efficacy and there may be health risks associated with the consumption of the product." 2. For Cannabis-Infused Product, the product identity and net weight statements must appear on the portion of the label displayed to the patient. 3. When a Cannabis-Infused Product is made specifically for a designated patient, the label of that product shall state the patient's Medical Cannabis Registry number. 4. A list of all ingredients used to manufacture the Edible Cannabis-Infused Product; which may include a list of any potential allergens contained within, or used in Ordinance No. 1845 Page 37 the manufacture of, the Cannabis-Infused Product, and company name statements must be conspicuously listed on the Cannabis-Infused Product package. 5. A nutrition facts panel may be required if nutritional claims are made on the label of any Cannabis-Infused Product. 6. A statement that the Cannabis-Infused Product, if perishable, must be refrigerated. 7. A product expiration date, for perishable Cannabis-Infused Product, upon which the product will no longer be fit for consumption, or a use-by-date, upon which the product will no longer be optimally fresh. Once a label with a use-by or expiration date has been affixed to a Container of a Cannabis-Infused Product, a Permittee shall not alter that date or affix a new label with a later use-by or expiration date. 8. Minimum print size. The minimum print size for each of the required statements for non-infused products and for each of the required statements for Cannabis-Infused Product is 1/16 inch. The size of the characters in the net weight statement is determined by the area of the principal display panel and may be greater than 1/16 inch. 5.35.710 Testing. A. Testing Rules and Regulations. The City Manager is authorized to formulate, adopt, and amend from time to time, rules and regulations regarding the safety and potency of medical cannabis distributed, dispensed, or sold at any MCCC and any marijuana dispensary operating in the City. The purpose of such rules and regulations is safe for treatment and free of pesticides, fungicides, and microbiological organisms such as mold, bacteria, and fungus, and to verify the potency of such Medical Cannabis. B. Testing Centers. The City Manager is authorized on behalf of the City to contract with one or more independent testing laboratories to assist the City Manager in the formulation of the rules and regulations required under this Section and to perform periodic and random testing of Medical Cannabis at each MCCC or any marijuana dispensary operating in the City. C. Samples on Demand. Each MCCC shall, upon request of the City Manager, submit a sufficient quantity of Medical Cannabis and Cannabis-Infused Product to a to a Cannabis Testing Facility retained by the City Manager to enable laboratory or chemical analysis thereof. The Cannabis Testing Facility shall maintain the testing results as part of its business books and records. The City Manager will notify the Permittee of the results of the analysis and the Permittee shall immediately take whatever action is required or directed by the City Manager. 5.35.720 False and Misleading Statements. No MCCC shall display upon or in proximity to, or referring to the Location, use, publish or exhibit, or permit to be used, or Ordinance No. 1845 Page 38 published, any sign, advertisement, display, notice, symbol or other device which uses misleading, deceptive, or false advertising. 5.35.800 Violation. Operation of an MCCC in non-compliance with any conditions of approval or standards of this Chapter shall constitute a violation of the Municipal Code and may be enforced pursuant to the provisions of this Chapter or any other provision of the Code. 5.35.810 Authority and Responsibility Under this Chapter. A. General Authority of Cit Mana er 1. The City Manager may delegate an act required to be performed pursuant to this Section to any Code Enforcement Officer or Official of the City, including without limitation the Chief of Police, the Fire Chief, the Building Official, the Finance Director, the City Attorney, or any designee of such officers or officials, including day-to-day operations. 2. The City Manager or the City Manager's designees as provided in Subsection Al above shall have all the powers of any peace officer to: a. Investigate violations or suspected violations of this Chapter, Chapter 3.35, and Section 93.23.15, and any other laws or regulations pertaining to Medical Cannabis in this City, and any resolutions or regulations promulgated pursuant to such provisions, and make arrests, with or without warrant, for any violation thereof, if, during an officer's exercise of powers or performance of duties pursuant to such laws, probable cause exists that a crime related to such laws has been or is being committed; b. Recordings made by the security cameras shall be made available to the City Manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials. C. The City Manager shall have the right to enter the MCCC from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and State of California. d. Serve all warrants, summonses, subpoenas, administrative citations, notices or other processes relating to the enforcement of laws regulating Medical Cannabis and Cannabis-Infused Product; e. Assist or aid any law enforcement officer in the performance of his or her duties upon such law enforcement officer's request or the request of other local officials having jurisdiction; f. Inspect, examine, or investigate any Location where Medical Cannabis or Cannabis-Infused Product are grown, stored, cultivated, manufactured, tested, Ordinance No. 1845 Page 39 distributed, or sold, and any books and records in any way connected with any permitted activity; g. Require any Permittee, upon demand, to permit an inspection of Location during business hours or at any time of apparent operation, Cannabis equipment, and Cannabis accessories, or books and records; and, to permit the testing of or examination of Medical Cannabis or Cannabis-Infused Product; h. Require Applicants to submit complete and current applications and fees and other information the City Manager deems necessary to make permitting decisions and approve material changes made by the Applicant or Permittee; i. Conduct investigations into the character, criminal history, and all other relevant factors related to suitability of all Permittees and Applicants for Medical Cannabis permits and such other Persons with a direct or indirect interest in an Applicant or Permittee, as the City Manager may require; and j. Exercise any other power or duty authorized by law. j B. Applicants and Permittees Shall Cooperate with City Manager Employees 1. Applicants and Permittees must cooperate with employees and investigators of the City Manager who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this Chapter. 2. No Applicant or Permittee shall by any means interfere with, obstruct or impede the City Manager or employee or investigator of the City Manager from exercising their duties under the provisions of this Chapter and all rules promulgated pursuant to it. This would include, but is not limited to: a. Threatening force or violence against an employee or investigator of the City Manager, or otherwise endeavoring to intimidate, obstruct, or impede employees or investigators of the City Manager, their supervisors, or any peace officers from exercising their duties. The term "threatening force" includes the threat of bodily harm to such individual or to a member of his or her family; b. Denying employees or investigators of the City Manager access to a Location during business hours or times of apparent activity; C. Providing false or misleading statements; d. Providing false or misleading documents and records; e. Failing to timely produce requested books and records required to be maintained by the Permittee; or f. Failing to timely respond to any other request for information made by the City Manager in connection with an investigation of the qualifications, conduct or compliance of an Applicant or Permittee. Ordinance No. 1845 Page 40 C. Administrative Hold. To prevent destruction of evidence, diversion or other threats to public safety, while permitting a Permittee to retain its inventory pending further investigation, a City Manager investigator may order an administrative hold of Medical Cannabis or Cannabis-Infused Product pursuant to the following procedure: 1. If during an investigation or inspection of a Permittee, the City Manager develops reasonable grounds to believe certain Medical Cannabis or Cannabis-Infused Product constitute evidence of acts in violation of this Chapter or rules promulgated pursuant to it, or otherwise constitute a threat to the public safety, the City Manager may issue a notice of administrative hold of any such Medical Cannabis or Cannabis-Infused Product. The notice of administrative hold shall provide a documented description of the Medical Cannabis or Cannabis-Infused Product to be subject to the administrative hold. 2. The Permittee shall completely and physically segregate the Medical Cannabis or Cannabis-Infused Product subject to the administrative hold in a separate area of the Location under investigation, where it shall be safeguarded by the Permittee. Pending the outcome of the investigation and any related disciplinary proceeding, the Permittee is prohibited from selling, giving away, transferring, transporting, or destroying the Medical Cannabis or Cannabis-Infused Product subject to the administrative hold. 3. Following an investigation, the City Manager may lift the administrative hold, order the continuation of the administrative hold, or seek a Final Agency Order for the destruction of the Cannabis. D. Voluntary surrender of Medical Cannabis or Cannabis-Infused Product. A Permittee, prior to a Final Order and upon mutual agreement with the City Manager, may elect to waive a right to a hearing and any associated rights, and voluntarily surrender any Medical Cannabis or Cannabis-Infused Product to the City Manager. Such voluntary surrender may require destruction of any Medical Cannabis or Cannabis-Infused Product in the presence of a City Manager. 5.35.820 Appeals. Any decision regarding the approval, conditional approval, denial, or revocation of a regulatory permit may be appealed to the City Council. Said appeal shall be made by a notice of appeal from the person appealing within thirty (30) days from the date of the decision. The appeal shall be accompanied by a fee, which shall be established by resolution of the City Council amended from time to time, and a written, verified declaration setting forth the basis for the claim that the permit was improperly approved, denied, conditioned or revoked. Filing of an appeal shall suspend the issuance of all regulatory permits until action is taken on the appeal. 5.35.830 Specific Enforcement Alternatives. A. Revocation. The City Manager may revoke a medical cannabis regulatory permit if any of the following, singularly or in combination, occur: 1. The City Manager determines that the MCCC has failed to comply with any provision of this Code, any condition or approval, or any agreement or covenant as required pursuant to this Section; or Ordinance No. 1845 Page 41 2. Operations cease for more than 90 calendar days, including during change of ownership proceedings; or 3. Operatorship is changed without securing a regulatory permit; or 4. The MCCC fails to maintain 240 continuous hours of security recordings; or 5. The MCCC fails to allow inspection of the security recordings, the activity logs, or of the premise by authorized City officials. B. Abatement Orders and Civil Penalties. 1. Any person, partnership, association, corporation, fiduciary, or other entity that owns, leases, occupies, controls, or manages any building, property, or occupancy and causes, permits, or maintains a violation of the provisions of this Chapter, or that falsely claims in any advertising of any kind, including without limitation, signs or handbills, that such person, association, corporation, fiduciary, or other entity is permitted as a MCCC in the City, shall be subject to an abatement order issued pursuant to the provisions of this Subsection and shall be liable for administrative penalties as follows: a. Each party subject to an abatement order pursuant to this Subsection, as determined by the City Manager, shall pay an administrative penalty of one thousand ($1,000.00) dollars. b. In the event that a violation of this Section addressed by an abatement order has not been abated, cured, remedied, and/or eliminated to the reasonable satisfaction the City Manager by the tenth (10th) day after the issuance of the abatement order, each party subject to said abatement order shall pay a supplemental administrative penalty of two thousand five hundred ($2,500.00) dollars. C. In the event that a violation of this Section addressed by an abatement order has not been abated, cured, remedied and/or eliminated to the reasonable satisfaction of the City Manager by the thirtieth (30th) day after the issuance of an abatement order, each party subject to said abatement order shall pay a second supplemental administrative penalty of five thousand ($5,000.00) dollars for each calendar week, or portion thereof, the building and/or occupancy thereof is in violation of the provisions of this Section. 2. The City Manager may issue an Abatement Order for violations of the provisions of this Section. The Abatement Order shall contain: a. The street address and assessor's parcel number of the premises on which the building or structure is located, sufficient for identification; b. Reference to all code sections violated with a brief and concise description of the conditions found; Ordinance No. 1845 Page 42 C. A statement of the required action to permanently correct outstanding violations; d. A statement enumerating the action that can be taken by the City should the responsible party or parties fail to comply with the terms and deadlines as prescribed in the Abatement Order. e. A statement advising that any person having any record title or interest in the building may appeal Abatement Order served, provided the appeal is made in writing, pursuant to and within the time frames provided in this Subsection. Failure to file an appeal in accordance with this Subsection shall constitute a waiver of the right to an administrative hearing and adjudication of the Abatement Order or any portion thereof. 3. The Abatement Order, or any amended Abatement Order, shall be served on the following parties: a. The record owner of the property; and, b. The holder of a mortgage, deed of trust, or other lien on the property, if recorded or otherwise actually known to the City Manager at the time the Abatement Order is served. C. If different than a. or b. above, the tenant of any building or structure or the operator of any marijuana or cannabis dispensary activity within such building or structure. 4. Service shall be completed in the following manner: a. Posting of the Abatement Order conspicuously on or in front of the property and at each point of public access into the building or structure. It is a misdemeanor to remove or deface any Abatement Order posted on the property. b. Simultaneously, the same notice shall be sent by regular mail and certified mail (return receipt requested). If a notice that is sent by certified mail is returned unsigned, then service shall be deemed effective pursuant to regular mail, provided the notice that was sent by regular mail is not returned. Service by certified or regular mail in the manner described above shall be effective on the date of mailing; or C. Personal service; d. If the City Manager is unable to effectively serve the Abatement Order as provided in this Subsection, the City Manager may publish the Abatement Order in a newspaper of general circulation (as defined in Govt. Code § 6000), published in this jurisdiction. Publication of the Abatement Order pursuant to this Subsection shall be for five (5) days. The period of notice commences upon the first day of publication and terminates at the end of the fifth day, Ordinance No. 1845 Page 43 v including therein the first day. Publication shall be made on each day on which the newspaper is published during the period. Service is deemed complete on the last day of publication. 5. The failure of any person with an interest in the property to receive any notice served in accordance with this Subsection shall not affect the validity of any proceedings taken under this Section. 6. Proof of service of the Notice and Order shall be documented at the time of service by a declaration under penalty of perjury, executed by the person effecting service, declaring the time and manner in which service was made. If service is effectuated by certified mail, the declaration, together with any receipt card returned in acknowledgment of receipt by certified mail, shall be affixed to the copy of the Notice and Order retained by the Building Official. 7. Upon receipt of an Abatement Order, each responsible party must take one of the following actions to avoid additional penalties: a. Correct the violation, pay the corresponding fine(s), if any, and contact the City Manager to request a re-inspection, prior to the compliance date specified in the abatement order; or b. Request a hearing to appeal the Abatement Order pursuant to Paragraph 8 of this Section 5.35.830B. 8. A responsible party receiving an Abatement Order may appeal such order within seven (7) calendar days from the date the Abatement Order is deemed served. a. The appeal must be in writing and must indicate the appellant's full name and mailing address. It must be accompanied by the penalty amount and appeal fee which shall be set by resolution of the City Council, must specify the basis for the appeal in detail, and must be filed with the City Clerk's Office. If the appeal deadline falls on a day City Hall is closed, then the deadline shall be extended until the next regular business day. b. As soon as practicable after receiving the written notice of appeal, the City Manager shall fix a date, time, and place for the hearing before a hearing officer pursuant to the provisions of Section 1.06.060 of this Code. Written notice of the time and place for the hearing may be served by first class mail, at the mailing address indicated on the written appeal. Service of the appeal notice must be made at least seven (7) calendar days prior to the date of the hearing to the party appealing the administrative citation. C. The failure of any person with an interest in the property, or other responsible party, to receive such properly addressed notice of the hearing shall not affect the validity of any proceedings under this Section. Service by first class mail, postage prepaid shall be effective on the date of mailing. d. Failure of any responsible party to file an appeal in accordance with the provisions of this Section shall constitute a waiver of that responsible party's Ordinance No. 1845 Page 44 rights to administrative determination of the merits of the Abatement Order and the amount of the penalty. If no appeal is filed, the Abatement Order shall be deemed a final administrative order and a failure to exhaust the responsible party's administrative remedies. 9. At any time after the Abatement Order becomes final, the City Council may cause the Abatement Order and a notice of lien to be recorded with the County Recorder. The final Abatement Order and lien shall, at a minimum, identify the record owner and/or possessor of the property and set forth the last known address of the record owner and/or possessor, the date on which the penalty was imposed, a description of the real property subject to the lien, and the amount of the penalty. 10. This Section provides a civil penalty remedy that is in addition to all other legal remedies, criminal or civil, which may be pursued by the City Manager or the City Attorney to address any violation of this Section. The civil penalty imposed pursuant to the provisions of this section shall be in lieu of the administrative citation penalties imposed pursuant to the provisions of Section 1.06.040 of this Code. SECTION 8. Section 6.08.150 of the Palm Springs Municipal Code is repealed. SECTION 9. Paragraph A.20 of Section 92.15.01of the Palm Springs Municipal Code is amended to read: 20. The MCCC, subject to the property development standards contained in Section 93.23.15 of this Code and compliance with the provisions of Chapter 5.35 of this Code. SECTION 10. Paragraph A.6 of Section 92.17.01 of the Palm Springs Municipal Code is amended to read: 6. The MCCC, subject to the property development standards contained in Section 93.23.15 of this Code and compliance with the provisions of Chapter 5.35 of this Code. SECTION 11. Paragraph A.5 of Section 92.17.1.01 of the Palm Springs Municipal Code is amended to read: 5. Medical Cannabis Cooperative or Collective, subject to the property development standards contained in Section 93.23.15 of this Code and compliance with the provisions of Chapter 5.35 of this Code. SECTION 12. Section 93.23.15 of the Palm Springs Municipal Code is amended to read: 93.23.15 Medical Cannabis Cooperative or Collective Special Standards. A. No land use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a MCCC shall be granted or permitted except in conformance with this Section. Ordinance No. 1845 Page 45 B. The MCCC shall be permitted only upon application and approval of a regulatory permit in accordance with the criteria and process set forth in Chapter 5.35 of this Code. Prior to initiating operations and as a continuing requisite to conducting operations, the legal representative of the persons wishing to operate a MCCC shall obtain a regulatory permit from the City Manager under the terms and conditions set forth in Chapter 5.35 of this Code and shall otherwise fully comply with the provisions of this Section. C. No MCCC shall be established, developed, or operated within five hundred (500) feet of a school, public playground or park, or any residential zone property, child care or day care facility, youth center, or church, or within one thousand (1,000) feet of any other MCCC, and shall not be located on any property that is occupied with a commercial retail use where such use is the primary use on such property. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest property line of the property on which the MCCC is, or will be located, to the nearest property line of those uses described in this Subsection. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.B. D. A MCCC is not and shall not be approved as an accessory use to any other use permitted by this Zoning Code. E. A MCCC shall be parked at a rate of one (1) space for every two hundred fifty (250) gross square feet of office space, and one (1) space for every eight hundred (800) square feet of warehouselcultivation space. Administrative modifications for this standard may be granted by the City Council pursuant to Section 94.06.01.B. SECTION 13. Sections 3 through 19, inclusive, of Council Resolution No.23476 have been have been reenacted and adopted as Sections 2 through 6 of this Ordinance and have been included as part of Chapter 3.35 of the Palm Springs Municipal Code. SECTION 14. Each MCCC approved prior to the effective date of this Ordinance and each Operator of each such MCCC shall apply for and complete the application process for a MCCC permit and a Management Permit as required pursuant to the provisions of this Ordinance by July 1, 2014. Failure to do so may result in revocation or termination of any existing permit approved by the City Council for such MCCC. SECTION 15. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 2ND DAY OF APRIL, 2014. STEPH N P. POUGNET WAYOR EST: AMES THOMPSON, CITY CLERK Ordinance No. 1845 Page 48 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No, 1845 is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 19T day of February, 2014, adopted at a regular meeting of the City Council held on the 51h day of March, 2014, and readopted at a regular meeting of the City Council held on the 2nd day of April, 2014, by the following vote: AYES: Councilmember Foat, Councilmember Lewin, Mayor Pro Tem Hutcheson, and Mayor Pougnet. NOES: Councilmember Mills. ABSENT: None. ABSTAIN: None. MES THOMPSON, CITY CLERK 61 City of Palm Springs, California. i Medical Cannabis NAedic l Marijuana in Cathedral City This page is designed to be the one location to find all the information you will need to know on Medical Cannabis in Cathedral City. ID Medical Cannabis Below are the most recent adopted Ordinances related to the Sale and Cultivation of Medical Marijuana in the City. More information will be provided through this page as it becomes available. Q- : a€1 No. 7 r Adding Section 5. 88 of the Cathedral City Municipal Code Relating to Medical Cannabis Ord;nance No. 77 .................................................................. Adopting Land Use Regulations Governing the Sale and Cultivation of Medical Cannabis ................................................................... Amending Sections 9. 08, 9. 30, 9.36, 9.40, 9.42, 9. 108 of the Cathedral City Municipal Code Relating to tM�e,,.dical Cannabis V€dlr3ance No. 175, Amending Sections 3.48, 5.88, 13. 80 of the Cathedral City Municipal Code Relating to Medical Cannabis Ordinance to. 777 .................................................................. Amending Chapters 9.08, 9.40, 9.42, and 9.108 of the Cathedral City Municipal Code Relating to Medical Cannabis Administrative Rules and Applications • Medicai C:.annabis_Admi:ist:at tij`u.._�;;t€.i.:es, Updated 6/2016 (pdf) • ).1e i C4€lnc,_bi .C`?.°' °�..13s_l(pdf) • Medical Cannabis'-:c_ense �, .=i: >: i� (pdf) ._..........._.........................._..._.......... ... . ...................... .. • U.P._Armlicati n (pdf) • business Licenwc, (link) Live Scan Call the Police Department at 760-770-0304 to schedule a Live Scan appointment for a dispensary/cultivation permit to begin the background process. Cannabis and Marijuana Tax On November 4, 2014, the Cathedral City voters approved Measure N, which approved a new tax at a rate of up to fifteen cents per each dollar of proceeds or fractional part thereof on marijuana collectives and dispensaries operating in the City of Cathedral City. A Marijuana (or cannabis) collective (dispensary) means any activity regulated or permitted by Chapter 9.108 of the Cathedral City Municipal Code, or California Health and Safety Code sections 11362.5, et seq., as may be amended from time to time, or any other activity or business that involves planting, cultivating, harvesting, transporting, dispensing, delivering, providing, manufacturing, compounding, converting, processing, preparing, storing, packaging, or testing any part of the marijuana plant for medical purposes. Every person engaged in operating or otherwise conducting a cannabis or marijuana collective and/or dispensary (collectively referred to herein as "collective"), and regardless of whether such collective has a permit pursuant to Chapter 9.108 of the City of Cathedral City's Municipal Code, establishes a maximum cannabis and marijuana tax of 15 cents for each $1.00 of proceeds or fractional part thereof. Proceeds means gross receipts of any kind, including without limitation, membership dues; the value of in- kind contributions; reimbursements provided by members regardless of form; any payments made; and anything else of value obtained by a cannabis or marijuana collective. Below is the Ordinance and Resolutions related to Cannabis and Marijuana Tax • - Cannabis and Marijuana Tax $.15 maximum tax Ballot Measure ..................................................................... • =`; ;; E;,,>; % , .:a.. ;;. - Applications / Deposits • ~: ..;.:;...- Tax Rates, Penalties and Audit Requirements, $.10 tax • • • Medical Cannabis Administrative Rules Adopted March 10, 2016 Revised June 10, 2016 TABLE OF CONTENTS Page 1. OVERVIEW......................................................................................................... 1 1.1 Required City Approvals ........................................................................ 1 1.2 Allowable Types of Medical Cannabis Businesses ............................. 1 1.3 Fees..........................................................................................................2 1.4 Processing Time.....................................................................................3 2. MEDICAL CANNABIS LICENSE......................................................................... 3 2.1 Submission of Application..................................................................... 3 2.2 Changes to an Application..................................................................... 5 2.3 Background Checks ............................................................................... 5 2.4 Approval or Denial of License ...............................................................8 2.5 Notification of Decision/Appeals......................................................... 12 2.6 Renewals ............................................................................................... 12 2.7 Modification of Medical Cannabis License......................................... 13 3. CONDITIONAL USE PERMIT........................................................................... 15 3.1 Procedural Considerations.................................................................. 15 3.2 Submission of Application................................................................... 15 3.3 Background Checks ............................................................................. 17 3.4 Approval or Denial of Permit ............................................................... 18 3.5 Notification of Decision/Appeals......................................................... 19 3.6 Conditions of Approval ........................................................................ 19 3.7 Modifications to Permit/ Relocation of Business.............................. 20 -i- City of Cathedral City Medical Cannabis Administrative Rules 1. OVERVIEW The City Council of the City of Cathedral City ("City") has adopted several ordinances establishing a comprehensive set of regulations allowing certain Medical Cannabis Businesses to operate within the City. Any person seeking to establish a Medical Cannabis Business within the City must obtain prior approval from the City before commencing operations. These Administrative Regulations are intended to provide the public with a clear understanding of the process for obtaining approval of a Medical Cannabis Business in the City. 1 .1 Required City Approvals The City requires all Medical Cannabis Businesses within the City to obtain a Medical Cannabis License and a Conditional Use Permit in addition to any other generally applicable permits, licenses or approvals that are required of businesses that operate in the City, including but not limited to a City business license and an alarm permit. Depending on the specifics of the proposed Medical Cannabis Business other permits that may be required include building permits, sign permits, and design review. A separate Medical Cannabis License and Conditional Use Permit are required for each proposed location. A proposed Medical Cannabis Business may submit applications for a Medical Cannabis License and a Conditional Use Permit at the same time, or may wait until after the Medical Cannabis License has issued to apply for a Conditional Use Permit. A_ Conditional Use Permit cannot be issued until after the Medical Cannabis License has been approved. A Medical Cannabis License must be renewed annually. 1.2 Allowable Types of Medical Cannabis Businesses As defined in the ordinances, a Medical Cannabis Business is any person engaged in the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical cannabis or a medical cannabis product. A Medical Cannabis License may be issued to a Medical Cannabis Business for some or all of those activities. However, as of June 10, 2016, a Conditional Use Permit may only be issued for "Dispensaries," "Cultivation Sites," or "Manufacturing Sites," as those terms are defined in Section 9.108.030(F), (G) and (S) of the Cathedral City Municipal Code ("City Code"). A person who desires to open a Medical Cannabis Business in the City other than a Dispensary, Cultivation Site or Manufacturing Site cannot do so at this time. -1- Furthermore, Dispensaries, Cultivation Sites and Manufacturing Sites may only be permitted in certain zones listed in Section 9.108.090 of the City Code. Dispensaries may be located in the 1-1, CBP-2, and PCC zones. Cultivation Sites may be located in the 1-1, CBP-2, PCC and OS zones. Manufacturing Sites may be located in the 1-1 zone. Dispensaries, Cultivation Sites and Manufacturing Sites are subject to other locational restrictions, as stated in Section 9.108.090 of the City Code, including minimum distance requirements from schools, day-care centers and youth centers, residential zones, and East Palm Canyon Drive. Any person who desires to open a Medical Cannabis Business in the City should ensure that the proposed location of the use satisfies the City's locational restrictions in Section 9.108.090 prior to filing an application for either a Medical Cannabis License or a Conditional Use Permit. 1 .3 Fees The City intends to recover all of the costs associated with processing and issuing Medical Cannabis Licenses and Conditional Use Permits, and as such has determined that a deposit-based system is appropriate. At the time an application for a Medical Cannabis License is filed, the City will require the applicant to submit a $7500 deposit with the City. This deposit will be used toward processing both the Medical Cannabis License and the Conditional Use Permit for the proposed Medical Cannabis Business. Staff will track the time and costs associated with processing both approvals and the deposit will be used to cover those costs. If the deposit is depleted prior to the issuance of either the Medical Cannabis License or Conditional Use Permit, staff will require the applicant to provide an additional deposit in an amount estimated to be sufficient to cover the remaining processing costs. If a replenishment deposit is not provided prior to the depletion of the deposit, staff may cease all work on the application(s) until the additional deposit monies are received. No Medical Cannabis License or Conditional Use Permit will be issued to any Medical Cannabis Business that has a deposit account that is in arrears. Any deposit money remaining after a final decision on the Conditional Use Permit application is made will be refunded to the applicant. NOTE: If an application for a Medical Cannabis License is submitted concurrently with an application for a Conditional Use Permit, staff may begin processing the Conditional Use Permit application before a final decision is rendered on the Medical Cannabis License. The applicant will not be entitled to a refund of any deposit money spent toward processing the Conditional Use Permit if the Medical Cannabis License is denied. Therefore, submitting concurrent applications for a Medical Cannabis License and Conditional Use Permit is at your own risk. The City will also use a deposit-based fee system for processing renewals of Medical Cannabis Licenses and modifications to Medical Cannabis Licenses and Conditional Use Permits. The initial deposit for a renewal of a Medical Cannabis License shall be $1000. The initial deposit for a modification of a Medical Cannabis License and/or Conditional Use Permit shall be $3000. -2- 1.4 Processing Time There are many factors that impact the time it takes to process a Medical Cannabis License and Conditional Use Permit, including but not limited to, the number of background checks that must be completed, the nature of any criminal history of an applicant, the level of detail provided in the plans required as a part of each application, and whether the applications are complete when submitted. The background check portion of the Medical Cannabis License is the most time consuming aspect of the process but the City will use its best efforts to complete the background checks within sixty (60) days of the receipt of the results of the final set of Live Scan results associated with the application. The City is committed to processing these applications as expediently as possible, but due to the multitude of factors that impact processing times it cannot commit to a firm processing deadline. 2. MEDICAL CANNABIS LICENSE 2.1 Submission of Application An applicant for a Medical Cannabis License must complete the application form required by the City and submit two (2) identical copies of the form. The application form shall be submitted to the City's Planning Division in person, along with the $7500 deposit and the following documentation: (a) Evidence that the applicant is, or will be, entitled to the possession of the premises for which the application is submitted. Acceptable evidence includes leases, rental agreements, recorded deeds evidencing ownership, and letters of intent. The City may accept other evidence as determined by the City Manager. The City may refuse to accept a letter of intent as evidence the applicant will be entitled to possession of the premises if multiple letters of intent have been issued for the same premises. If the Medical Cannabis Business is proposed to be located on real property that is not owned by the applicant, a notarized statement from the property owner that it agrees to a Medical Cannabis Business being operated on the property. (b) Evidence of the ownership structure of any Medical Cannabis Business. Acceptable evidence includes articles of incorporation, by-laws, organizational minutes, articles of organization, and partnership agreements. The City may accept other evidence as determined by the City Manager. (c) A general description of the products and services to be provided by the Medical Cannabis Business. (d) A floor plan, drawn to scale on no smaller than 8.5 x 11 inch paper providing, at a minimum, all interior dimensions of the premises and the layout of the proposed Medical Cannabis Business. The floor plan must show which areas are limited access, all ingress and egress points, the principal uses of the floor area depicted, and the locations of security cameras. -3- (e) A security plan that addresses how the applicant intends to comply with and implement the requirements of Chapter 5.88.065 and other relevant provisions of the City Code and state law, including, but not limited to, a description of how the security measures are sufficient to ensure the safety of members and employees, protect he premises from diversion and theft, and ensure that buildings are secured sufficiently to prevent unauthorized entry. The security plan shall include a diagram indicating all areas to be covered by 24 hour security cameras and the methods the Medical Cannabis Business will use to ensure medical cannabis is under secure control of its staff at all times. (f) A list of the Medical Cannabis Businesses' employees, if any. An updated employee list shall be provided to the City if there are any changes to the employee list at any time prior to the approval or denial of the Medical Cannabis License. (g) If the application is for a Dispensary, an estimate of the size of the group of ID Card holders and/or Qualifying Patients who will be served by the Dispensary, and a statement as to whether delivery service will be provided. (h) If delivery service will be provided, an explanation of the extent of such service and a detailed delivery plan explaining how the delivery service will comply with applicable Cathedral City ordinances and state law. (i) If the application is for a Cultivation Site, a declaration that the applicant is an "agricultural employer," as defined in the Alatorre-Zenovich-Sunlap- Berman Agricultural Labor Relations Act of 1975 (Labor Code section 1140.4(c)). Q) A map prepared and signed by a licensed land surveyor stating that the premises meets the distance requirements set forth in Section 9.108.090 of the City Code. The distances shall be measured in the manner provided for in Section 9.108.090. If the Business is proposed to be located within a multi-unit building, the measurements shall be taken from the nearest point of the suite in which the Business will be located, provided that the suite has been legally established and approved by the City prior to the submission of the application for the License. Upon receipt of an application, the City will date and time stamp the application form, retaining one copy for the Planning Division. The second copy of the form will be date and time stamped and returned to the applicant. The Planning Division will also provide the applicant with a Live Scan form for each person identified in the application as an owner, director, officer, or person who is managing or otherwise responsible for the activities of the proposed of the Medical Cannabis Business. Live Scan forms will also be available on the City's website. The City will perform a courtesy pre-screening of the application to identify any obvious deficiencies, including a preliminary determination of whether the proposed location of the Business meets the locational requirements for a Conditional Use Permit. The City will endeavor to complete the courtesy pre-screening within seven (7) business -4- days of receipt of the application. The City will make a final determination within forty- five (45) calendar days after an application is submitted whether the application is complete and provide a final list of the individuals who must undergo a background check. For purposes of issuance of the Medical Cannabis License, the application is considered "complete" if all required materials listed in this Section 2.1 have been submitted to the City. The completeness determination shall not include a site visit or analysis of the contents of the application for purposes of the Medical Cannabis License. Once an application is determined to be complete, written notice will be provided to the applicant. If the application is determined to be incomplete, the City will provide the applicant with written notice and a list of the additional information required to process the application. The applicant shall have thirty (30) days from the date of the written notice to provide all of the additional information. Failure to provide all of the additional information within the thirty (30) day window will result in the application being deemed withdrawn. 2.2 Changes to an Application The City may request any changes to an application or additional information it deems necessary at any time. An applicant may also make changes to its application after submission, except as listed below. Any changes made unilaterally by the applicant prior to the City's determination that the application is complete will result in a reset of the forty-five day deadline for the City to make its completeness determination. Any changes made unilaterally by the applicant after a determination of completeness may also result in delays. Applicants are not allowed to make either of the following changes to an application: (a) Once an application is determined to be complete and a final list of the individuals who must undergo a background check has been provided to the applicant, the applicant may not make any changes to the application that would impact the list of individuals who must undergo a background check. (b) The proposed location of the Medical Cannabis Business may not be changed after receipt of the application by the City. If an applicant desires to make either of these two types of prohibited changes, the applicant must withdraw the pending application and submit a new application. However, the City Manager shall have discretion to make exceptions to this rule and allow such amendments without requiring a new application in the interests of fairness and expediency. 2.3 Background Checks All owners, directors, officers and persons who are managing or otherwise responsible for the activities of a proposed Medical Cannabis Business must submit to a background check as a part of the Medical Cannabis Licensing process. The City will -5- make a final determination of which individuals are required to submit to a background check as a part of the licensing process when the application is determined to be complete. The designation of a person as the agent for service of process for the Medical Cannabis Business does not, in and of itself, require that person to be background checked. Employees and volunteers who are not managers or otherwise responsible for the activities of the proposed Medical Cannabis Business are not required to submit to a background check as a part of the Licensing process. However, Section 5.88.065 requires the Medical Cannabis Business to conduct background checks of such individuals and keep them on file. Each Medical Cannabis Business shall be responsible for ensuring that all employees and volunteers who are not required by the City to submit to a background check as a part of the Medical Cannabis Licensing process are appropriately background checked prior to commencing work at the Medical Cannabis Business and the results of such background checks are maintained on file. City staff will conduct background check compliance audits once a Medical Cannabis Business is open. Background checks consist of a two-step process: Live Scan and Background Investigation, as discussed in more detail below. In the interest of expediency, the applicant may commence the background check process immediately after the submission of an application by causing the owners, directors, officers and persons who are managing or otherwise responsible for the activities of a proposed Medical Cannabis Business to submit to a Live Scan. However, applicants are cautioned that they will not be entitled to a refund of any deposit moneys spent on background checks. Therefore, applicants may choose to wait to commence the background check process until after the City has completed the courtesy pre-screening or made a formal determination that the application is complete to minimize the potential for incurring non-refundable costs on an application that is ultimately withdrawn. The background check process is done on an individual basis, meaning that if there are multiple individuals required to be background checked for an application the City will not hold up one person's background check due to delays by another person associated with the application. For example, if one owner submits to a Live Scan immediately after submitting the application and another owner waits a month to be Live Scanned, the background check for the first owner will proceed even though the second owner has not started the background check process. However, the background check process for an application cannot be completed until all persons required to submit to a background check have completed the process. It is anticipated that all background checks, other than the Live Scan fingerprinting portion of the background checks, will be conducted by an outside contractor designated by the Chief of Police. However, the Chief of Police shall maintain discretion to cause the background checks to be conducted in whatever manner he deems fit. For purposes of these regulations, the person or persons conducting the background check are referred to as the "Background Investigator." Step One: Each individual associated with the application must be fingerprinted using -6- Live Scan technology. The individuals must personally appear at the Cathedral City Police Department and present a completed Request for Live Scan Service form and valid Driver's License or Identification Card. The City will not allow individuals to be Live Scanned at any location other than the Cathedral City Police Department. A representative from the Cathedral City Police Department will scan the individual's fingerprints and transmit them to the Department of Justice. Individuals should schedule an appointment to be Live Scanned with the Cathedral City Police Department by calling (760) 770-0380. The date and time stamped copy of the Medical Cannabis License application form returned to the applicant by the Planning Division must also be submitted to the Police Department. It is strongly encouraged that all persons required to submit to a background check for an application submit to the Live Scan at the same appointment. If separate appointments are made, the first person associated with the application to submit to a Live Scan shall provide the Police Department with the date and time stamped application form. Step Two: After an individual completes Step One, the Chief of Police or his designee will cause the Background Investigator to commence the background checks of that person. It is expected that the Background Investigator will be required to process multiple background checks simultaneously. In the event that priority must be established in the processing of multiple applications, the Background Investigator shall use reasonable judgment in allocating resources and consider the order in which all necessary materials were fully received by the City and any other reasonable factors. The Background Investigator shall endeavor to complete the background check within sixty (60) days. Approximately thirty (30) days and again approximately forty-five (45) days after the receipt of a notification to proceed, the Background Investigator shall provide a written report to the Chief of Police indicating the general progress of the background check and whether he or she anticipates the background check will be completed within the sixty (60) day window. If the Background Investigator believes the background check will take longer than sixty (60) days, the Background Investigator shall explain in detail the reasons for the extension and provide an estimate of the additional time needed, subject to approval by the Chief of Police or his designee. If lack of cooperation on behalf of any person is part of the cause of the need for additional time, such information shall be expressly stated. In such event, the Chief of Police or designee shall immediately provide notification to the applicant in writing of the anticipated delay in completion of the background check. All persons undergoing the background check shall be required to fully cooperate with the Background Investigator. Applicants are expressly cautioned that failure to fully and timely cooperate by any person required to undergo a background check may result in delays in the completion of the background check, and/or a determination of denial. -7- The background check shall generally consist of, but not be limited to, a review of each individual's twenty (20) year residential history, a review of public records, a search to determine probation status, parole status, contacts with law enforcement, and an interview or interviews with the Background Investigator as appropriate. The Background Investigator shall have reasonable discretion to go beyond these parameters where reasonably necessary to obtain additional information which is necessary to make a determination as to the applicant's qualifications for a Medical Cannabis License, as discussed in more detail below. Once all of the background checks required for an application are complete, the Background Investigator shall prepare and submit a full report to the Chief of Police upon completion of the background check. The information shall be provided to the Chief of Police in a format that allows for separate consideration of each person who is required to undergo a background check. The report shall include, but shall not be limited to, information submitted or uncovered during the investigation which is necessary for a determination of whether there is "Good Cause" to deny the application, as discussed in more detail in Section 2.3(a)(ii) below. The Background Investigator shall be tasked solely with providing factual information in his or her report in order to provide the Chief of Police with a sufficient factual basis to make a determination as to whether the application should be approved or denied. The Chief of Police shall review the report from the Background Investigator and make a recommendation as to whether the criminal history of one or more of the individuals indicates that Good Cause exists to deny the application (See Section 2.3(a)(ii) below for more information regarding the bases for making this recommendation). The Chief of Police's recommendation shall be issued in writing within ten (10) calendar days of his receipt of the report from the Background Investigator and shall include an explanation as to the Chief of Police's reasoning in making the recommendation, including the analysis bridging the facts to the ultimate conclusions. This ten (10) day period maybe extended by a reasonable period by the City Manager upon a written finding that extraordinary facts exist creating the need for additional time, at the request of the Chief of Police. The recommendation of the Police Chief shall be provided to the City Attorney and City Manager for review. 2.4 Approval or Denial of License The City Manager, or his designee, shall decide whether to approve or deny an application for a Medical Cannabis License after receiving the recommendation of the Police Chief regarding the background checks and consulting with the City Attorney. The City Manager will approve an application unless grounds for denial exist. The City Manager will use his best efforts to issue a decision to approve or deny a Medical Cannabis License within fifteen (15) days of the receipt of a final recommendation from the Police Chief regarding the background checks. (a) Grounds for Denial. -8- (i) Automatic Denial. The City Manager must deny an application if it is determined that the applicant is prohibited from holding a Medical Cannabis License under Chapter 5.88 of the City Code or the Business & Professions Code § 19300 et seq. (ii) Discretionary Denial. The City Manager may deny an application for "Good Cause", as defined in Section 5.88.025(L) of the City Code. Good Cause exists if: (1) The applicant has violated any provision of Chapter 5.88 of the City Code, including but not limited to Section 5.88.035, any state laws pertaining to medical cannabis or any rules or regulations adopted pursuant thereto, or any locally adopted rules or regulations. (2) The premise that is the subject of the application has been operated in a manner that adversely affects the public health, safety or welfare or the safety of the immediate neighborhood in which the premises is located. (3) The applicant has knowingly made false statement, misrepresentations or material omissions on the application form or any other document submitted to the City. (4) An owner, officer or director of the applicant is a physician who is making recommendations for medical cannabis. (5) The applicant has had a Medical Cannabis License revoked or has had more than one suspension of a Medical Cannabis License. (6) The criminal history of the applicant does not indicate that the applicant is of"Good Moral Character" as defined in City Code section 5.88.025(M) and as further explained in Section 2.3(b) below. (7) The applicant has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, as further explained in Section 2.3(c) below. (b) Determination of Moral Character "Good Moral Character" is defined as "having a personal history that demonstrates the propensity to serve the public in the licensed area in a manner that reflects openness, honesty, fairness, and respect for the rights of others and for the law." In general, a judgment of guilt in a criminal prosecution or a judgment in a civil action is not, in and of itself, conclusive proof of a person's lack of Good Moral Character, but may be used as evidence in making the determination. However, if an applicant has been convicted of any of the following types of offenses, that conviction alone may be used as evidence that the applicant lacks Good Moral Character and the City may deny the License: -9- (i) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance. (ii) A felony conviction for selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor. (iii) A felony conviction for drug trafficking with enhancements pursuant to Sections 11370.4 or 11379.8 of the Business and Professions Code. Due to the subjectivity of the determination of one's moral character, the City will allow a person who is preliminarily determined to not be of Good Moral Character to provide rebuttal evidence prior to a final determination on the License, as discussed in Section 2.3(d) below. (c) Convictions Substantially Related to Medical Cannabis Businesses In making a determination as to whether a conviction is "substantially related to the qualifications, functions, or duties of the business or profession for which the application is made," Section 5.88.025(L)(4) of the City Code states that the City Manager "shall only consider the factors as set forth in Section 19323(b)(5) of the Business and Professions Code." Section 19323(b)(5) consists of a non-exclusive list of the convictions that are considered to be "substantially related." Therefore, consistent with Section 19323(b)(5), and the City shall consider convictions for the following offenses to be substantially related: (i) A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance. (ii) A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. A copy of subdivision (c) of Section 667.5 of the Penal Code is attached to these regulations as Appendix A. (iii) A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code. A copy of subdivision (c) of Section 1192.7 of the Penal Code is attached to these regulations as Appendix B. (iv) A felony conviction involving fraud, deceit, or embezzlement. If an applicant has been convicted of any of these crimes, the City Manager may nonetheless grant the requested Medical Cannabis License if it is determined that the applicant has otherwise satisfied all of the requirements for the issuance of a License and issuing the License would not compromise public safety. In determining that public safety would not be compromised, the City shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of the rehabilitation of the individual. Due to the subjectivity of the determination of whether a person has been -10- rehabilitated and no longer poses a threat to the public safety, the City will allow a person who has been convicted of any of the above listed offenses to provide evidence of rehabilitation prior to a final determination on the License, as discussed in Section 2.3(d) below. (d) Rebuttal Evidence If the recommendation of the Police Chief is to deny the requested Medical Cannabis License based on the applicant's lack of Good Moral Character or convictions for offenses that are substantially related to the qualifications, functions, or duties of a Medical Cannabis Business, the City Manager shall notify the applicant of the City's preliminary determination via both regular mail and certified mail, return receipt requested. The notice shall state that if the applicant disagrees with the preliminary determination and desires to submit any evidence rebutting the determination, the applicant shall notify the City of its intent to submit evidence in writing within ten (10) days of the date the notice was received. If a notice of intent to submit evidence is not timely submitted by the applicant, the applicant is deemed to have waived his or her right to submit rebuttal evidence and the City Manager may proceed to make a final determination on the License in consultation with the City Attorney. If the City receives a timely notice of intent to submit evidence, the applicant shall request a conference before the Chief of Police at which time the applicant may submit his or her rebuttal evidence within ninety (90) days of service of the notice of preliminary determination. If the applicant does not request a conference within this timeframe, the applicant is deemed to have waived his or her right to submit rebuttal evidence and the City Manager may proceed to make a final determination on the License in consultation with the City Attorney. The conference shall be scheduled before the Chief of Police or designee in no less than ten (10) days and no more than thirty (30) days from the date the request is received, unless the applicant agrees to a different date for the conference in writing. The Chief of Police or designee shall cause the conference to be scheduled and notice of the date, time, and location of the conference to the applicant in writing as soon as practicable, and no less than seven (7) calendar days before the conference date. If the applicant is unavailable on the date scheduled, the applicant may contact the office of the Chief of Police to request a different date, and the Chief of Police shall accommodate the applicant's schedule to the extent practicable. At the conference, the applicant may provide any testamentary or documentary evidence to establish that it is entitled to pass the background check. The applicant may be, but need not be, represented by an attorney. The Background Investigator and any other persons deemed necessary by the Chief of Police shall personally attend the conference and may be examined by the applicant. The Chief of Police shall preside over the conference, which shall be informal in nature. At the conclusion of the conference, the Chief of Police shall issue a written determination within ten (10) days to the City Manager and City Attorney. The Chief of Police may affirm, reverse, or modify in any respect his recommendation. After the Chief of Police submits his -11- determination to the City Manager and City Attorney, the City Manager may proceed to make a final determination on the License in consultation with the City Attorney. 2.5 Notification of Decision/Appeals The City Manager shall notify the applicant in writing by regular and certified mail, return receipt requested of his decision to approve or deny a Medical Cannabis License. If the City Manager's decision is to approve the License, the notice shall state that the License will not be issued until the applicant posts a cash deposit or letter of credit in the amount of$5000 as the security required by Section 5.88.040(I)(5) of the City Code. The Medical Cannabis License shall not be considered final, and no Conditional Use Permit may be issued, until this amount is posted. The notice shall inform the applicant that it or any other person may appeal the decision to the City Council in accordance with Section 2.04.100 et seq. of the City Code. 2.6 Renewals A Medical Cannabis License has a one-year term and must be renewed by the recipient Medical Cannabis Business ("Medical Cannabis Licensee"). A complete application for renewal and the renewal fee must be filed at least thirty days before the expiration date of the Medical Cannabis License. The City may reject any renewal application that is not timely filed or that remains incomplete with less than thirty days until expiration. A Medical Cannabis Licensee must complete the Medical Cannabis License renewal form required by the City. The Medical Cannabis Licensee must disclose any changes to the information provided to the City in the initial application for the Medical Cannabis Business under Section 2.1 of these Rules. In addition, a renewal application must be accompanied with the following: (a) The register of employees and volunteers required by Section 5.88.065(A)(4)(c). (b) Proof that the Medical Cannabis Licensee has paid all due and payable state and local taxes and fees. All owners, directors, officers and persons who are managing or otherwise responsible for the activities of the Medical Cannabis Licensee must be Live Scanned by the Cathedral City Police Department as a part of the renewal process. If no new criminal history is found on the Live Scan results, no further background check is required. If new criminal history is found the Chief of Police may, in his discretion, cause the Background Investigator to conduct an investigation of the new criminal history. The standards and procedures discussed in Section 2.2 above apply to any background check required by this section. The City may conduct an inspection of the premises and/or the records of the Medical Cannabis Business pursuant to Section 5.88.105 of the Code prior to a determination on a renewal application. -12- The City Manager shall decide whether to approve or deny a renewal application using the same standards applicable to the approval or denial of an initial License application, as discussed in detail in Section 2.4 of these Rules. If the City has not finished processing a timely-filed application for renewal before the expiration date of the License, the Medical Cannabis Business may continue to operate until such time as a decision is rendered by the City on the renewal application. 2.7 Modification of Medical Cannabis License After a Medical Cannabis License is approved, the Medical Cannabis Licensee must apply for and receive approval of a modification to its License prior to making any material changes to the Medical Cannabis Business, including but not limited to changes to the ownership of the Medical Cannabis Business; the addition of a new type of commercial cannabis activity to the Business (e.g. adding manufacturing to an approved cultivation site); substantial alterations to the premises; and relocation of the Medical Cannabis Business. A Licensee requesting a modification to its Medical Cannabis License shall complete the form provided by the City, and provide any supporting documentation requested by the City. The supporting documentation required may vary depending on the nature and extent of the proposed modification. (a) Change of Ownership Proposed changes in ownership that involve the addition of new owners must be approved by the City in advance. The proposed new owner(s) must submit to a background check, conducted in the manner described in Section 2.2 above. The City Manager shall approve or deny the requested change in ownership in the same manner as described in Section 2.4 above. If the City Manager approves the change in ownership, the Medical Cannabis Licensee may commence to take any steps necessary to effectuate the change in ownership. No change to the Medical Cannabis Licensee's conditional use permit is required. Changes in ownership that solely involve the removal of one or more persons from ownership of the Medical Cannabis Business do not require the prior approval of the City. However, such changes must be reported to the City within thirty (30) days of the change. (b) Modifications to Licensed Premises A Medical Cannabis Licensee shall not make any substantial physical alterations to the premises, including but not limited to changes to the square footage of the premises and the removal, addition or relocation of walls and doors, without modifying its License. Prior to making any physical alterations to the premises, the Licensee should consult with the City to determine whether a modification to the License or any other City approvals, including but not limited to a building permit, is required. Substantial physical alterations to the premises also require a modification to the conditional use permit for the Medical Cannabis Business. The Licensee may apply for -13- a modification to its License and its Conditional Use Permit concurrently. The Licensee shall submit a floor plan meeting the requirements of Section 2.1(d) of these Rules along with the application form. If the modification includes an expansion of the premises, the Licensee shall also submit evidence that it is or will be entitled to possession of the expansion area and a new map prepared by a licensed surveyor showing that the expansion of the premises will not violate any of the locational standards in Section 9.108.090 of the Code. If the requested modification impacts the approved security plan, and updated security plan shall also be provided. The City Manager shall approve or deny the requested modification in the same manner as described in Section 2.4 above. If the City Manager approves the modification to the License, the Licensee shall obtain any other necessary City approvals prior to commencing any construction work. (c) Change of Location A Medical Cannabis Licensee may request to move its Medical Cannabis Business to a new location. The Licensee shall submit the information listed in Section 2.1(a), (d), (e), (f) and 0) of these Rules along with the application form and fee. The relocation of a Medical Cannabis Business may require the issuance of a Conditional Use Permit for the new location or, if the new location already has an approved Conditional Use Permit, a modification of the existing Conditional Use Permit. The Licensee may apply for a modification to its Medical Cannabis License and the new or modified Conditional Use Permit concurrently. The City Manager shall approve or deny the requested change of location in the same manner as described in Section 2.4 above. If the City Manager approves the relocation, the Licensee shall not commence to operate from the new location until the new or modified Conditional Use Permit is approved. (d) Changes to Approved Activities A Medical Cannabis Licensee may modify the approved commercial cannabis activities that it may conduct at the licensed premises. For example, a Licensee approved for cultivation may request a modification to add manufacturing and/or dispensing on the premises. The Licensee shall submit the information listed in Section 2.1(c), (d), (e) and (f) of these Rules along with the application form and fee. The information required in Section 2.1(g), (h) and (i) must also be submitted as appropriate. The addition of new commercial cannabis activities also requires a modification to the Condition Use Permit for the premises. The Licensee may apply for a modification to its Medical Cannabis License concurrently with a request to modify its Conditional Use Permit. The City Manager shall approve or deny the requested change to the approved commercial cannabis activities in the same manner as described in Section 2.4 above. If the City Manager approves the change, the Licensee shall not commence the new -14- commercial cannabis activities until the modification to the Conditional Use Permit is approved. 3. CONDITIONAL USE PERMIT 3.1 Procedural Considerations As previously stated, a person may apply for a Conditional Use Permit concurrently with a Medical Cannabis License or may wait to apply until after the Medical Cannabis License has been approved. If the applications are submitted concurrently, the application for a Conditional Use Permit will not be formally considered complete for the purposes of the Permit Streamlining Act (Government Code § 65940 et seq.) until the Medical Cannabis License has been approved. However, in the interest of expediency, the City may begin processing the Conditional Use Permit application prior to the issuance of the Medical Cannabis License. The City will not schedule the Conditional Use Permit for a public hearing before the Planning Commission until a Medical Cannabis License has been approved by the City Manager and the appeal period has expired or all appeals have been exhausted. If the Medical Cannabis License is denied, the Conditional Use Permit application will be deemed incomplete, all work will cease on the Conditional Use Permit, and the applicant will be refunded any balance left of its deposit. Applicants are advised that the Conditional Use Permit application may require at least one site visit by City Planning staff and the potential need to revise submitted plans to ensure they comply with all applicable laws and regulations prior to scheduling of the hearing before the Planning Commission. Proof of the issuance of a Medical Cannabis License to the applicant will be considered to satisfy some of the application requirements, as noted in Section 3.2(a) below. Therefore, the Conditional Use Permit submittal package for an applicant who has already received a Medical Cannabis License will be smaller than the submittal package for an applicant that has applied or is applying for both approvals concurrently. 3.2 Submission of Application An applicant for a Conditional Use Permit for a Medical Cannabis Business must complete the application form required by the City. The application form shall be submitted to the City in person, along with the following documentation: (a) Proof that the applicant has received a Medical Cannabis License for the premises, or a statement the applicant has applied for a Medical Cannabis License concurrently with the Conditional Use Permit. If the applicant submits proof that it has received a Medical Cannabis License, the documentation listed in subsections b, e, q and h below do not need to be submitted as the Medical Cannabis License is deemed to satisfy those requirements. (b) A floor plan, drawn to scale on no smaller than 8.5 x 11 inch paper, of the Medical Cannabis Business denoting the use of all areas of the premises, -15- including storage, employee areas, restrooms, limited and restricted access areas, areas of ingress and egress, the location of security cameras and exterior lighting, and signage. (c) If the Medical Cannabis Business is proposed to occupy an existing building, plans and specifications for the interior of the building as built and plans and specifications for any proposed alterations to the building. (d) If the Medical Cannabis Business is proposed to occupy new construction, a plot plan, detailed sketch of the interior of the premises, and an architect's drawing of the building. (e) If the Medical Cannabis Business is proposed to be located on real property that is not owned by the applicant, a notarized statement from the property owner that it agrees to a Medical Cannabis Business being operated on the property. (f) For new construction, a site plan of the premises evidencing that the design of the premises conforms to City Code and design requirements. (g) A security plan that addresses how the applicant intends to comply with and implement the requirements of Chapter 5.88.065 and other relevant provisions of the City Code and State law, including, but not limited to, a description of how the security measures are sufficient to ensure the safety of Medical Cannabis Patients, Primary Caregivers, employees and volunteers, protect the premises from diversion and theft, and ensure that buildings are secured sufficiently to prevent unauthorized entry. The security plan shall include a diagram indicating all areas to be covered by 24 hour security cameras and the methods the Medical Cannabis Business will use to ensure medical cannabis is under secure control of its staff at all times. (h) A map prepared and signed by a licensed land surveyor stating that the premises meets the distance requirements set forth in Section 9.108.090 of the City Code. The distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the Medical Cannabis Business will be located to the nearest property line of the locations listed in Section 9.108.090. If the Business is proposed to be located within a multi-unit building, the measurements shall be taken from the nearest point of the suite in which the Business will be located, provided that the suite has been legally established and approved by the City prior to the submission of the application for the Conditional Use Permit. (i) Verification that an odor filtration system meeting the requirements of Section 9.108.050(C) will be installed. Q) For Cultivation Sites or Manufacturing Sites, (i) An environmental plan indicating how cultivation and/or manufacturing will be conducted in accordance with state and local laws related to -16- hazardous material disposal, land conversion, grading, electricity usage, water usage, and agricultural discharges. (ii) If the application is for a Cultivation Site or Manufacturing Site, an emergency response plan that complies with Title 8 of the Cathedral City Municipal Code and California Fire Code ("CFC") Section 401, and sets out standard operating procedures to be followed by all individuals in case of a fire, chemical release, chemical spill, or other emergency. (iii) A description of the source of electricity, the size of the electrical service or system, and the total demand to be placed on the system by all proposed uses on the site. (k) For Cultivation Sites, verification of the source(s) of water for cultivation. (1) For Manufacturing Sites, (i) A report from a Professional Engineer that details the type of equipment that will be used to extract cannabinoids from Medical Cannabis. If Flammable Gas, Flammable Liquefied Gas, Flammable and Combustible Liquids, or compressed carbon dioxide (CO2) are used for extraction, then the report must certify that only closed-loop extraction system(s), that are UL or ETL listed or have a sign off by a Professional Engineer, capable of recovering the solvent are utilized. (ii) A separate diagram of any room where extraction occurs that details the location of the extraction equipment, areas of ingress and egress, emergency eye-wash station, any other fire suppression or emergency equipment required by Title 8 of the Cathedral City Municipal Code, City and California building codes, fire codes, electrical codes and all other applicable laws. 3.3 Background Checks In general, background checks will be done through the Medical Cannabis License process as described above and will not be required as a part of the Conditional Use Permit process. However, supplemental background checks may be required in limited circumstances. (a) Non-concurrent Applications If an application for a Conditional Use Permit is submitted after a Medical Cannabis License has been issued to the applicant, a supplemental background check may be required. Furthermore, the application form requires any criminal history occurring after the issuance of a Medical Cannabis License to be disclosed. If new criminal history is disclosed on the application form or more than six (6) months has passed between the issuance of the Local License and the application for a Conditional Use Permit, each owner, director, officer or other person managing or -17- otherwise responsible for the Medical Cannabis Business must undergo a new Live Scan. If no new criminal history is found on the Live Scan results, no further background check is required. If new criminal history is found the Chief of Police may, in his discretion, cause the Background Investigator to conduct an investigation of the new criminal history and prepare an update to his or her report. The standards and procedures discussed in Section 2.2 above apply to any background check update required by this section. (b) New Background Information Is Discovered Regardless of whether an application for a Conditional Use Permit is submitted concurrently with or after the Medical Cannabis License, if criminal history or other relevant information relating to the applicant's background comes to light that was not disclosed by the applicant or discovered by the City during the Medical Cannabis Licensing process, the Chief of Police may, in his discretion, cause the Background Investigator to conduct an investigation of the new criminal history or other information and prepare an update to his or her report. The standards and procedures discussed in Section 2.2 above apply to any background check update required by this section. 3.4 Approval or Denial of Permit (a) Approval A Conditional Use Permit may only be approved by the Planning Commission if the findings for conditional use permits generally, contained in Section 9.72.010 of the City Code, can be made in addition to the following findings specific to Medical Cannabis Businesses: (i) The Medical Cannabis Business as well as all operations as conducted therein, fully comply with all applicable building, zoning and fire Codes, accessibility requirements of the Americans with Disability Act, and all relevant City and State Law; and (ii) The Medical Cannabis Business fully complies with and meet all operating criteria required pursuant to State Laws, Chapter 5.88 of this Code, any other provisions of this Code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval in the Conditional Use Permit; and (iii) For Dispensaries, the number, type, and availability of Dispensaries located in or near the premises are such that the issuance of a conditional use permit to the Applicant will not result in or add to an undue concentration of Dispensaries and/or result in a need for additional law enforcement resources. (b) Denial To deny a Conditional Use Permit, the Planning Commission must make at least one of the following findings: -18- (i) The findings required by Section 9.72.010 for the granting of a conditional use permit cannot be made. (ii) The findings required by Section 9.108.060(A) (listed above in Section 3.4(a)(i)-(iii) of these regulations) cannot be made. (iii) The Medical Cannabis Business does not meet the locational and other requirements in Section 9.108.090. (iv) Good Cause exists to deny the Conditional Use Permit. Good Cause shall be determined in the same manner as for Medical Cannabis Licenses, as discussed in Section 2.3(a)(ii) above, except that the Planning Commission shall not consider any criminal history of the applicant that was disclosed to or discovered by the City prior to the issuance of the Medical Cannabis License in making a determination of whether Good Cause exists. 3.5 Notification of Decision/Appeals The Planning Department shall notify the applicant in writing by regular and certified mail, return receipt requested of the Planning Commission's decision to approve or deny a Conditional Use Permit. The notice shall inform the applicant that it or any other person may appeal the decision to the City Council in accordance with Section 9.72.080 of the City Code. 3.6 Conditions of Approval In addition to any other conditions of approval the Planning Commission determines are appropriate, each Conditional Use Permit shall include the following conditions: (a) Indemnity Agreement Section 9.108.120(A) of the City Code requires a successful applicant for a Conditional Use Permit to execute an indemnity agreement. The applicant must sign and return the required indemnity agreement within ten (10) days of the approval of the Conditional Use Permit. The Conditional Use Permit shall contain a condition of approval that provides it will not take effect until the indemnity agreement is signed and returned to the City. (b) Commercial General Liability Insurance Requirement Prior to the issuance of a certificate of occupancy, all Medical Cannabis Businesses shall be required to secure and maintain insurance written on an occurrence basis to protect the Medical Cannabis Business and the City against liability or claims of liability which may arise out of the operation of the Medical Cannabis Business in the amount of one million dollars ($1,000,000) per occurrence and subject to an annual aggregate of two million dollars ($2,000,000). Coverage shall be at least as broad as Insurance Services Office form Commercial General Liability coverage -19- (Occurrence Form CG 0001). There shall be no endorsement or modification of the CGL limiting the scope of coverage for either insured vs. additional insured claims or contractual liability. All defense costs shall be outside the limits of the policy. The City, and its respective elected and appointed officers, officials, and employees and volunteers are to be named and covered as additional insureds. Certificates of insurance must be submitted to the City prior to the issuance of a certificate of occupancy. (c) Fire Sprinklers For Cultivation Sites and Manufacturing Sites, the Fire Department considers these uses to be a Group F-1 (Factory Industrial Moderate-hazard Occupancy). All new construction is required to be fire sprinkled per the Fire Code. For Cultivation and Manufacturing Sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists: (i) A Group F-1 fire area exceeds 12,000 square feet. (ii) A Group F-1 fire area is located more than three stories above grade plane. (iii) The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds 24,000 square feet. 3.7 Modifications to Permit/ Relocation of Business After a Conditional Use Permit is approved, the Medical Cannabis Licensee must apply for and receive approval of a modification to its Conditional Use Permit prior to adding a new type of commercial cannabis activity to the Business (e.g. adding manufacturing to an approved cultivation site) and prior to making any substantial physical alterations to the premises. In addition, a Medical Cannabis Licensee that desires to relocate its Business to a new location must obtain the proper planning approvals from the City prior to relocating the business. A Licensee requesting a modification to its Conditional Use Permit shall complete the form provided by the City, and provide any supporting documentation requested by the City. The supporting documentation required may vary depending on the nature and extent of the proposed modification. (a) Modifications to Premises A Medical Cannabis Licensee shall not make any substantial physical alterations to the premises, including but not limited to changes to the square footage of the premises and the removal, addition or relocation of walls and doors, without modifying its Conditional Use Permit, as required by Section 9.108.070(B) of the Code. Prior to making any physical alterations to the premises, the Licensee should consult with the City to determine whether a modification to the Conditional Use Permit or any other City approvals, including but not limited to a building permit, is required. Substantial physical -20- alterations to the premises also require a modification to the Medical Cannabis License for the Medical Cannabis Business. A modification to the Conditional Use Permit may not be approved until after the modification to the License is approved. The Licensee shall submit a floor plan and/or site plan meeting the requirements of Section 3.2(b) and (f) of these Rules, as appropriate, along with the application form and fee. If the modification includes an expansion of the premises, the Licensee shall also submit a new map prepared by a licensed surveyor showing that the expansion of the premises will not violate any of the locational standards in Section 9.108.090 of the Code. If the requested modification impacts the approved security plan, and updated security plan shall also be provided. The Planning Commission shall approve or deny the requested modification in the same manner as described in Section 3.4 above. If the Planning Commission approves the modification to the Conditional Use Permit, the Licensee shall obtain any other necessary City approvals prior to commencing any construction work. (b) Change of Location A Medical Cannabis Licensee may request to relocate its Business to a new site. Conditional Use Permits run with the land. Therefore, it is possible for a Medical Cannabis Business to relocate to a new site in the City that already has an approved Conditional Use Permit for a Medical Cannabis Business. If the new site already has an approved Conditional Use Permit for a Medical Cannabis Business, the Licensee need not apply for a new Conditional Use Permit. A Medical Cannabis Licensee interested in relocating its Business to a site with an existing Conditional Use Permit for a Medical Cannabis Business should consult with Planning staff to determine whether and to what extent modifications to the Conditional Use Permit are necessary to accommodate the Licensee's Medical Cannabis Business. A modification to a Conditional Use Permit shall be requested by submitting a completed application form, along with all supporting documentation requested by the City, and the application fee. A modification to a Conditional Use Permit shall be approved or denied in the same manner as described in Section 3.4 above. A modification to the Conditional Use Permit may not be approved until after the modification to the License is approved. If the new site does not have an existing Conditional Use Permit for a Medical Cannabis Business the Licensee must apply for a Conditional Use Permit for the site, which shall be processed in the manner discussed above for all initial Conditional Use Permit applications. (c) Change of Approved Activities A Medical Cannabis Licensee may request modification of the approved commercial cannabis activities that it may conduct at the premises. For example, a Licensee approved for cultivation may request a modification to add manufacturing and/or dispensing on the premises. The Licensee shall submit the information listed in -21- Section 3.2(a) through (c) of these Rules along with the application form and fee. The addition of new commercial cannabis activities also requires a modification to the Medical Cannabis License for the premises. A modification to the Conditional Use Permit may not be approved until after the modification to the License is approved. The Planning Commission shall approve or deny the requested change to the approved commercial cannabis activities in the same manner as described in Section 3.4 above. -22- APPENDIX A Section 667.5(c) of the California Penal Code (c) For the purpose of this section, "violent felony" shall mean any of the following: (1) Murder or voluntary manslaughter. (2) Mayhem. (3) Rape as defined in paragraph (2) or (6) of subdivision (a) of Section 261 or paragraph (1) or (4) of subdivision (a) of Section 262. (4) Sodomy as defined in subdivision (c) or (d) of Section 286. (5) Oral copulation as defined in subdivision (c) or (d) of Section 288a. (6) Lewd or lascivious act as defined in subdivision (a) or (b) of Section 288. (7) Any felony punishable by death or imprisonment in the state prison for life. (8) Any felony in which the defendant inflicts great bodily injury on any person other than an accomplice which has been charged and proved as provided for in Section 12022.7, 12022.8, or 12022.9 on or after July 1, 1977, or as specified prior to July 1, 1977, in Sections 213, 264, and 461, or any felony in which the defendant uses a firearm which use has been charged and proved as provided in subdivision (a) of Section 12022.3, or Section 12022.5 or 12022.55. (9) Any robbery. (10) Arson, in violation of subdivision (a) or (b) of Section 451. (11) Sexual penetration as defined in subdivision (a) or (j) of Section 289. (12) Attempted murder. (13) A violation of Section 18745, 18750, or 18755. (14) Kidnapping. (15) Assault with the intent to commit a specified felony, in violation of Section 220. (16) Continuous sexual abuse of a child, in violation of Section 288.5. (17) Carjacking, as defined in subdivision (a) of Section 215. (18) Rape, spousal rape, or sexual penetration, in concert, in violation of Section 264.1. (19) Extortion, as defined in Section 518, which would constitute a felony violation of Section 186.22. (20) Threats to victims or witnesses, as defined in Section 136.1, which would constitute a felony violation of Section 186.22. (21) Any burglary of the first degree, as defined in subdivision (a) of Section 460, wherein it is charged and proved that another person, other than an accomplice, was present in the residence during the commission of the burglary. -23- (22) Any violation of Section 12022.53. (23) A violation of subdivision (b) or (c) of Section 11418. The Legislature finds and declares that these specified crimes merit special consideration when imposing a sentence to display society's condemnation for these extraordinary crimes of violence against the person. -24- APPENDIX B Section 1192.7(c) of the California Penal Code (c) As used in this section, "serious felony" means any of the following: (1) Murder or voluntary manslaughter; (2) mayhem; (3) rape; (4) sodomy by force, violence, duress, menace, threat of great bodily injury, or fear of immediate and unlawful bodily injury on the victim or another person; (5) oral copulation by force, violence, duress, menace, threat of great bodily injury, or fear of immediate and unlawful bodily injury on the victim or another person; (6) lewd or lascivious act on a child under 14 years of age; (7) any felony punishable by death or imprisonment in the state prison for life; (8) any felony in which the defendant personally inflicts great bodily injury on any person, other than an accomplice, or any felony in which the defendant personally uses a firearm; (9) attempted murder; (10) assault with intent to commit rape or robbery; (11) assault with a deadly weapon or instrument on a peace officer; (12) assault by a life prisoner on a noninmate; (13) assault with a deadly weapon by an inmate; (14) arson; (15) exploding a destructive device or any explosive with intent to injure; (16) exploding a destructive device or any explosive causing bodily injury, great bodily injury, or mayhem; (17) exploding a destructive device or any explosive with intent to murder; (18) any burglary of the first degree; (19) robbery or bank robbery; (20) kidnapping; (21) holding of a hostage by a person confined in a state prison; (22) attempt to commit a felony punishable by death or imprisonment in the state prison for life; (23) any felony in which the defendant personally used a dangerous or deadly weapon; (24) selling, furnishing, administering, giving, or offering to sell, furnish, administer, or give to a minor any heroin, cocaine, phencyclidine (PCP), or any methamphetamine-related drug, as described in paragraph (2) of subdivision (d) of Section 11055 of the Health and Safety Code, or any of the precursors of methamphetamines, as described in subparagraph (A) of paragraph (1) of subdivision (f) of Section 11055 or subdivision (a) of Section 11100 of the Health and Safety Code; (25) any violation of subdivision (a) of Section 289 where the act is accomplished against the victim's will by force, violence, duress, menace, or fear of immediate and unlawful bodily injury on the victim or another person; (26) grand theft involving a firearm; (27) carjacking; (28) any felony offense, which would also constitute a felony violation of Section 186.22; (29) assault with the intent to commit mayhem, rape, sodomy, or oral copulation, in violation of Section 220; (30) throwing acid or flammable substances, in violation of Section 244; (31) assault with a deadly weapon, firearm, machinegun, assault weapon, or semiautomatic firearm or assault on a peace officer or firefighter, in violation of Section 245; (32) assault with a deadly weapon against a public transit employee, custodial officer, or school employee, in violation of Section 245.2, 245.3, or 245.5; (33) discharge of a firearm at an inhabited dwelling, vehicle, or aircraft, in violation of Section 246; (34) commission of rape or sexual penetration in concert with another person, in violation of Section 264.1; (35) continuous sexual abuse of a child, in violation of Section 288.5; (36) shooting from a vehicle, in violation of -25- subdivision (c) or (d) of Section 26100; (37) intimidation of victims or witnesses, in violation of Section 136.1; (38) criminal threats, in violation of Section 422; (39) any attempt to commit a crime listed in this subdivision other than an assault; (40) any violation of Section 12022.53; (41) a violation of subdivision (b) or (c) of Section 11418; and (42) any conspiracy to commit an offense described in this subdivision. -26- 11/2/2016 Home-Rancho Mirage-City of Rancho Mirage Policex CITY O� R I� t" MIRAGEMedia mant an a S arch Results C,losa About 217 results i0.20 seconds; . Medical Marijuana Delivery Service Application r ii „ormat PDF/Adobe Acrobat Medical Marijuana Delivery Services.Application Review. Name of Applicant: Name of Click Hereto View Roundtable Discussion Chaired by C Cooperative/Collective:Checklist: Supplemental Use and Occupancy ... A olications/Forms r - — The following City of Rancho Mirage interactive forms/applications are provided for your convenience. Unless noted as an Electronic Submittal*, all forms are... CC09-Welcome to Laserfiche VE/ebLink Apr 19, 2012 ... marijuana for medical purposes upon a physician's recommendation, ... and Welcome to r C San Pablo; and 2 counties have prohibited marijuana dispensaries Police Bulletin: Friday, February 19, 2016- Rancho Mirage Feb 19, 2016... 1402 Hours: Marijuana Grow House—Rancho Mirage Police responded to a residence on Boothill Circle in reference to an indoor marijuana ... CC09-Welcome to Laserfiche WebLink Y S � Mar 29, 2013 ... OF MARIJUANA GROWN FOR MEDICAL USE August 2008. In 1996, l California voters approved an initiative that exempted certain patients... CC09-Welcome to Laserfiche WebLink Apr 19,2012 ... dispense, and do not sell marijuana, a patron will not receive any marijuana until an amount of money acceptable to the dispensary has ... CC09-Welcome to Laserfiche WebLink Apr 19,2012 ... under California's medical marijuana statute.The Court explained that under Recognized for its elegant ambience and unique luxur the Controlled Substances Act marijuana is a Schedule I drug and ... exclusive gated cor.imun es,beautiful golf courses, abounds and the#1 Bentley and one of the top Roils I CC09-Welcome to Laserfiche WebLink located in the City. Apr 19, 2012 ... business licenses allowing medical marijuana stores to operate, but no ... Federal law clearly and unequivocally states that all marijuana-... Ran;;ho Mlrarge boasts world-,,'ass resorts. including t Ritz-Carlton.The Omni Rancho Las Pairrias Resort is Ord 1006-Welcome to Laserfiche WebLink Hollywood business leaders and their families. read m Feb 28,2011 ...57 Van Derbeken,et aL."'Kate Heneroty,"Medical marijuana indictment unsealed,".bu•ist, 24 June 2005. available at h tgr.(itit:t_lais LLvlu ... Ord 1007- Laserfiche WebLink Quick Links Mar 6.2014 ... marijuana for medical purposes where that medical use is deemed appropriate and ... marijuana,"and to"ensure that patients and their primary .......................................... ...... 1 2 3 4 5 6 7 8 9 10 . Election Information . Adopt a Pet . Affordable Housing " a ► " . Applications& Forms -- (/ . City Commissions/Boards • City Maps F, •, .. <�:�,;:�<:.:=�::u,.:�� .. Emergency • Code Compliance/Animal Services . 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URGENCY OROINANCEEXTENIXNG THE TENSMARYPRONVIONONTHEESTABL6H iEw1 F THE EF€STRIWTIO%*F€GfE.Cs4Ca 1£ t 12/A4 2410 CANNABIS AT EXIST€G BUSINESSES,AND TfffF CUtT'€SFATtt d6 Cif'A4EGtscA cAkr1ANlS OEY €' HA'SPECV ICALLY PERMMED BY STATE LAW,ORIGINALLY ADOPTELS ON SEMMUR Srs, 010 AND PREV OUSCY EXTENDED ON QUOUR 21.2"0,MULCT TO THE PRO VIS{'.kiS CONTAINED s+E RUN kw Eft#1009 SetUw 11 5005 A2I$f iS Amrfnw=nK Prty€aam of K?twnv*pa€crack chwAff14M mm stin>$to tt e DKIAs on of Pldalati ersdinR mun uI4 Cud#ch,149vt 14.W,PsxbSEFt Nwwrwet,to t vUne Mtfesa€canmta,s Itk1G t€2!$7$I4kS2 € mAt*s and CvMvAVm a-Avde 1**contem at a quAV*d Pae emr,m w awl ed is Perxo a€Revdkme A PUWK Nulsvxc ad tier a r"ha»trr Sit^�Aamutirai f-s«nah s:earsra+sE rn TM.G «1EnFmi+ertt 11/7/2016 City of Indio:Search Search marijuana Search Ab011t City of Indio :Marijuana Report/Research Nov 5,2015...Marijuana Report/Research.Print.Marijuana Ad Hoc....Marijuana Ad Hoc Report on Research- Powerpoint Presentation.Last updated:... ww-%w,.indio.org/index.aspx?page=927 Marijuana Ad Hoc Committee File Format:Microsoft Powerpoint ..................................... ..... . .... . . .. . Marijuana Ad Hoc Committee.Report on Research.Overview.Ad Hoc Appointed April 15,2015.Compassionate Patient Resources(CPR)Facilities.June 18... w�niv.indio.org/Modules/ShowDocument.aspx?documentid=490 7 ..._ __........ .. .. .. . ...... ......... _ ................._ Page 1 Page 2 Page 3 Page 4 About Marijuana Use in Denver www... File Format:PDF/Adobe Acrobat _..... .... ........ . Marijuana 1nfoDenver.org.DENVER.THE MILE HIGH CITY 1 MAKING HASH CAN cAuse A FLASH.Hash oil is created by extracting THC from the ptant using. wwiv.indio.org%Modules/ShowDocument.aspx?documentid=4910 ............ .... ......... _................. ._...._. ......... ....__..._ .. .. ..... _ City of Indio :Marijuana Report/Research Nov 5,2015...Marijuana Ad Hoc-Report on Research Part 2•Marijuana Ad Hoc Report on Research-Powerpoint Presentation.Last updated: 11/5/2015... www,%v.indio.org'itulex.aspx/index.aspx?page=927 ......_ _ . ............... ........ City of Indio :Agendas.Minutes.Resolutions&Ordinances Public Records Request Voter/Registration Info Staff•Links•IPad Agendas Marijuana Report/Research FPPC Forms•City Departments o City Clerk... ww•wv.indio.org/index.aspx?page=873 .... ......... ........ ....... _ .--_... .................. Cft of Indio:City Clerk Jan 4,2016...Public Records Request•Voter/Registration Info-Staff•Links-IPad Agendas-Marijuana Report/Research•FPPC Forms.City Departments... Sltivwti'.1Ildlo.org/ilidex.aspx?page-i 1 CCU of Indio : Dan Martinez,City Manager Feb 10,2016...Dan Martinez,Indio's City Manager was appointed by the City Council effective July 22,2010. - - Mr.Martinez grew up in Indio where his parents... w•ww.indio.org/i nd ex.aspx?page=493 ......... ... ...... Chy of Indio:Business License Information Jun 30,2016...Every new business which has a fixed location within the City of Indio must pass inspection by the Fire Department,Planning and Building... ww�vn-.indio.org/index.aspx?page=845 ... ....... ......... ... .. ...................................... ....... ..... ... ......... ___._...... ....._ http://www.i ndio.org/gcsearch.aspx?q=m ar ij uana 112 Colorado Marijuana Industry Research Trip Michael H.Wilson, Councilmember Richard P.Twiss,Chief of Police September 7, 2015 Overview: On August 13, 2015, City of Indio Marijuana Ad Hoc Committee members Michael Wilson and Richard Twiss traveled to Denver, Colorado to conduct direct research on the implementation and impacts of Amendments 20 and 64 of the Colorado Constitution related to both medical and recreational cultivation, distribution, and possession, to include commercial growing and retail sales, of marijuana. Scope: Committee members were involved in a series of meetings and tours between August 14 and 15, 2015, involving chiefs of police, city attorneys, representatives from the Colorado Municipal League, Understanding Legal Marijuana LLC, the Colorado Marijuana Enforcement Division, corporate executives and retail managers from LivWell Enlightened Health. The topics of discussion and agenda consisted of, Overview of Marijuana Issues, Issues around Impaired Driving, City Policy and Municipal Ordinances, Local Control Issues, a Marijuana Optional Premise Cultivation (OPC) and Marijuana Infused Products (MIP) Tour, and meeting with the Denver Police Department followed by a foot patrol of the 16th Street Mall, Civic Center Park and Commons Park, a tour of the LivWell on Broadway Marijuana Retail Outlet Store, a drive along the "Green Mile", and concluding with a meeting at the Urban Peak Homeless Shelter. Process: Committee members used dialogue, question and answer, in addition to direct observations to collect data used to develop the information detailed in the areas of inquiry and responses. Areas of Inquiry and Responses: A series of questions were developed from various sources; such as, questions during a previous City Council update on medical marijuana cultivation and dispensaries, Ad Hoc Committee members, source documents on the topic of medical and recreational marijuana, and op-ed articles from the local press. The questions were listed under five separate categories: economic development, crime, conditioning, public health, and staffing. As committee members progressed through the various meetings and tours, the questions were answered. The responses have been summarized under the appropriate corresponding headings. Although the questions were categorized, the responses and headings will follow the agenda of events from the trip. 11Page Colorado Marijuana Industry Research Trip Michael H. Wilson, Councilmember Richard P.Twiss,Chief of Police September 7, 2015 Overview of Marijuana Issues There was an emphasis to seek and maintain local control for both medical and recreational marijuana production, use, extraction processes, and sales. Politically, most states begin with a medical marijuana model and then transition to recreational use. The linkage between medical care and marijuana causes difficulties with enforcement. Reference was made to the medical marijuana model implemented by the State of Georgia entitled "Haleigh's Hope Act." The purpose of the Act was to provide for the possession of low THC oil under certain circumstances. THC, or tetrahydrocannabinol, is the chemical responsible for most of marijuana's psychological effects. It acts much like the cannabinoid chemicals made naturally by the body, according to the National Institute on Drug Abuse (NIDA). Cannabinoid receptors are concentrated in certain areas of the brain associated with thinking, memory, pleasure, coordination, and time perception. THC attaches to these receptors and activates them and affects a person's memory, pleasure, movements, thinking, concentration, coordination, and sensory and time perception, according to NIDA. THC is one of many compounds found in the resin secreted by glands of the marijuana plant. More of these glands are found around the reproductive organs of the plant than on any other area of the plant. Other compounds unique to marijuana, called cannabinoids, are present in this resin. There was discussion of implementing strong taxation and regulatory processes and further dialogue with the Marijuana Enforcement Division who recommended review of the Colorado Marijuana Code (copies of the current code book and supplement have been purchased for review). It was suggested to seek adequate up front funding from companies and corporations applying to open a business to cover the regulatory and enforcement needs which will be above and beyond current services provided to the community from the general fund. The tax revenue generated by marijuana sales in Colorado appears be trending up but when compared to the overall state budget it is not significant. We spoke about the comparison between societal costs and marijuana revenue and whether the costs to society outweigh the revenue gained, at least from a public safety and health perspective. While discussing the pre and post recreational use of marijuana, anecdotal data suggests no increases. There has been a gap identified between legislative/voter approval and regulatory compliance and/or enforcement. This is attributed to the complicated law(s) and lack of advanced training and delay in standing up agencies 2 1 P a g e Colorado Marijuana Industry Research Trip Michael H. Wilson, Councilmember Richard P.Twiss,Chief of Police September 7, 2015 tasked with oversight. There was discussion of"seed to sale" controls, which are expensive and take time to both implement and monitor, if they work. There is a need to identify a funding stream to address research facilities, treatment programs and facilities to address the needs of community members struggling with addiction resulting from ease of access and increased use. The chemical processes of extraction to produce hash or honey oil from the active ingredients found in marijuana is conducted through use of butane, alcohol, and CO2. This process is very dangerous and has resulted in injuries and death from explosions occurring during the extraction process. Recommendations were made to ban non- commercial chemical extraction and to allow only commercial closed-loop extraction systems for commercial use. There is some data that suggests there are some neurological benefits stemming from marijuana use, but more research is needed in that area. A final cautionary note from this meeting was to be cautious of general fund expenditure increases, because the dialogue about projected revenue can be intoxicating and skew the focus away from general fund expenditures. Drug Impaired Driving This dialogue focused mainly on the gap between implementation and training of front line law enforcement personnel to address the unintended consequences of increased marijuana use and the operation of motor vehicles. A four hour course has been developed to educate law enforcement on marijuana laws and has also been approved by the Colorado Peace Officer Standards and Training Commission. There was a suggestion to begin local and regional law enforcement Marijuana Working Groups (the California Police Chiefs Association has a working group). There was a discussion of prohibition and a comparison to how criminal organizations started the industry and how the corporations will assume control and distribution. The remainder of the discussion focused on preparation of police reports for criminal prosecution of drug impaired driving suspects and the development of training for police officers to conduct these investigations. The other major area of concern is the increased laboratory costs to process an impaired driver's blood to detect the presence or absence of THC for prosecution. Colorado law only requires determining the first level of impairment so in cases of poly-drug impairment involving alcohol and drugs, once alcohol impairment is confirmed there is no further analysis conducted. This means that the true data involving Driving Under the Influence of Drugs (DUID) for THC and any increases are unknown. 3 1 P a g e Colorado Marijuana Industry Research Trip Michael H.Wilson, Councilmember Richard P.Twiss, Chief of Police September 7, 2015 City of Denver Mariivana Policy Office and Greenwood Village City Attorney Our discussion focused on local codes, conditions, restrictions, and opt-out procedures. The need to conduct research so the local body can be educated and informed about all aspects of this industry, such as the size of the grow space allowed for care givers as opposed to large commercial production sites. These size parameters are needed to establish production to use ratios to prevent incidents of diversion when growers produce more marijuana than they can consume. Some of the common counter arguments to this are the larger amounts needed to produce the concentrates derived from extraction processes using alcohol and butane. Considerations for conditioning of properties should involve lighting sources, protections against mold issues in residential grows, restriction of the use of CO2 and butane for extraction processes, water (drought), and electrical use increases and the potential for theft of those services. It was recommended that residential grow operations be limited if allowed; however prevention of residential grows was the preferred option. There are so-called "closed loop" extraction systems, which are supposed to prevent the leakage of butane during the extraction process, but although these systems are designed to prevent leakage butane does escape. As a result, the City of Denver is moving to condition blast rooms and exhaust systems to enhance the safety of the workers involved in the extraction process as well as the community at large. Recommendations were made to work with the fire department in developing zoning regulations for the storage of on-site chemicals, solvents, and pesticides used in the production and extraction processes of marijuana. Currently 71% of Colorado communities have opted out of commercial production and retail sales of marijuana. Denver is really the statewide epicenter for commercial production and sales (medical and recreational) with over 1000 licenses currently issued. A cautionary note that smaller jurisdictions believe they will balance their general fund needs through revenue generated by licensing these businesses. There was a cautionary note regarding small businesses and the recommendation to consider increased costs for employees to license and regulate the businesses. Local Control Issues The dual distribution track of medical and recreational marijuana is problematic. In Colorado there are two different taxes imposed for the purchase of marijuana; a lower tax for medical and a higher tax for recreational. The state has a computerized marijuana inventory tracking system known as metro© and the seller must use two separate points of sale devices to track the sales for medical and recreational 41Pae D-3 lS�ldRht33��..' v.: TO: Honorable Chair and Members of the Planning Commission FROM: Les Johnson, Community Development Director DATE: April 14, 2015 SUBJECT: MEDICAL MARIJUANA DISPENSARIES AND GROUP HOMES At the Planning Commission meeting of February 24, 2015, the Commission requested a summary of the La Quinta Municipal Code (LQMC) regulations regarding medical marijuana dispensaries and group homes, which follows: Medical Marijuana Dispensaries LQMC Section 9.20.050 was adopted in 2007 and states the following: A. Medical marijuana dispensaries are a prohibited use in all zones. B. "Medical marijuana dispensary" means a facility or location which provides, makes available or distributes medical marijuana to a primary caregiver, a qualified patient, or a person with an identification card, in accordance with California Health and Safety Code Section 11362.5 et seq. (Ord. 439 § 1 , 2007) Furthermore, medical marijuana dispensaries were declared a public nuisance in 2007 (LQMC Section 11 .72.030). The City Council staff reports for each ordinance, which provide detailed information regarding dispensaries, have been included (Attachment 1). In 1996, California voters passed Proposition 215 to allow for the medical use of marijuana. However, it remains an illegal substance under any other circumstances. At the federal level, marijuana remains classified as a Schedule I substance under the Controlled Substances Act, and under federal law is illegal to distribute. As more states began to legalize marijuana for medical use, the federal government has come under increasing political pressure to not prosecute distributors of marijuana for medical purposes in accordance with state law. The inconsistencies between federal and state law, and the issues clouding it, are complex and present a significant challenge in permitting and enforcement. In consideration of this, the premise of the City's decision to prohibit dispensaries was based on potential for increased crime, and to be consistent with federal law. 78-495 Calle Tampico I La Quinta I California 92253 1 760.777.7000 1 www.La-Quinta.org Group Homes A variety of group home living arrangements are available in the City's residential zones. They include congregate living facilities, residential care facilities, senior citizen residences, and supportive/transitional housing. As listed in the LQMC, their allowance varies between residential zones (Attachment 2). The definition of each type of facility varies as well. State law requires residential care facilities serving six or fewer residents be considered a residential property and be treated the same as a single-family home. Residential care facilities with seven or more residents are subject to local land use regulations such as zoning, permitting and public hearing requirements. Attachments: 1 . Medical Marijuana Dispensaries City Council Staff Reports dated June 5 and 19, 2014 2. Group Homes LQMC Table of Permitted Uses and Definitions 2 Medical Marijuana Dispensaries City Council Staff Reports J S ATTACHMENT 1 OF TKO O COUNCIL/RDA MEETING DATE: June 5, 2007 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: Consideration of Amendments to the Municipal Code, Adding Subsection (DD) to Section CONSENT CALENDAR: 11 .72.030 ("Public Nuisances Declared") and to STUDY SESSION: Declare Medical Marijuana Dispensaries a Public Nuisance PUBLIC HEARING: RECOMMENDATION: Motion to take up Ordinance No. by title and number only and waive further reading. Motion to introduce Ordinance No. on first reading amending the La Quinta Municipal Code to add Subsection (DD) to Section 1 1 .72.030 ("Public Nuisances Declared") declaring medical marijuana dispensaries to be public nuisance. FISCAL IMPLICATIONS: None initially. Following adoption, the City may incur costs in connection with enforcement of these amendments. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff is presenting these Amendments for City Council consideration to establish a clear prohibition on medical marijuana dispensaries in La Quinta. Generally speaking, a medical marijuana dispensary is a facility or location that provides, makes available or distributes medical marijuana to a primary caregiver, a qualified patient, or a person with an identification card, in accordance and as defined in California Health and Safety Code Section 11362.5 et seq. Medical Marijuana Dispensaries City Council Staff Reports Presently, to the knowledge of staff, there are no medical marijuana dispensaries operating in the City and the City's Zoning Code does not permit medical marijuana facilities in any zoning designation (however, there is no express prohibition either). Additionally, the City's Public Nuisance Ordinance is silent on whether medical marijuana facilities are public nuisances, although Municipal Code Section 11 .72.020 Subdivisions (M) and (BB) and (CC) generally declare nuisances to be actions that are unlawful under the Zoning Code, are dangerous to the public, or are nuisances under State law, respectively. Given that some jurisdictions in the Coachella Valley have observed a rise in the operation of these facilities, staff has brought this matter to the Council for consideration so that the Council can take proactive action to establish a clear policy. City staff has scheduled a comparison Zoning Ordinance Amendment, which is scheduled for the June 12, 2007 Planning Commission meeting, and the June 19, 2007 City Council meeting. The purpose of the Zoning Code Amendment is to prohibit medical marijuana facilities in all zones. California law generally prohibits the possession, cultivation, sale, transportation and distribution of marijuana. (Health & Safety Code §§ 11357, 11358, 11359, 11360, 11361 , 11366, 1 136.5.) Accordingly, unless medical marijuana dispensaries fall within an exception to these laws, their operations plainly violate California law (and, as discussed below, federal law). In November of 1996, California voters approved Proposition 215, also termed the "Compassionate Use Act of 1996," which is codified at Health & Safety Code Section 11362.5. Section 11362.5 creates an exception to California's laws against the possession and cultivation of marijuana for "seriously ill" Californians who have received a doctor's recommendation, and for their "primary caregivers." In February of 2003, the California Legislature enacted SB 420, which added several medical marijuana-related provisions to the Health & Safety Code Section 11362.7 et seq to amend and clarify the Compassionate Use Act. (Health & Safety Code § 11362.7, Legislative Notes.) Under SB 420 medical marijuana dispensaries must be licensed with the State as a health clinic or health facility, and must consistently assume responsibility for each of its customers' health and safety in order to be considered a "primary caregiver" and fall within the protections of Section 11362.7. In addition, a medical marijuana dispensing facility is not authorized to engage in for-profit sales of marijuana. Thus, because of these requirements, it is likely that many medical marijuana operations in the State are operating illegally. Aside from State law, the federal Controlled Substances Act (21 U.S.C. § 801 etseq.) prohibits the manufacture, distribution, and possession of various controlled substances, including marijuana. (See United States v. Oak/and Cannabis Buyers' Cooperative (2001 ) 532 U.S. 483, 486.) Specifically, the Controlled Substances Act provides that "except as authorized by this subchapter, it shall be unlawful for any person knowingly or intentionally . . . to manufacture, distribute, or dispense, or Medical Marijuana Dispensaries City Council Staff Reports possess with intent to manufacture, distribute, or dispense, a controlled substance." (21 U.S.C. § 841 (a)(1 ). The United States Supreme Court has ruled that the federal Controlled Substances Act does not contain any "medical necessity" exception that would permit the manufacture, distribution, or possession of marijuana for medical purposes, which is what California's Compassionate Use Act purports to accomplish. The proposed Ordinance, which declares medical marijuana dispensaries a public nuisance and bans them in the City, does not violate the Compassionate Use Act or SB 420 and complies with federal law. Notably, Health & Safety Code Section 11362.83 provides that "Nothing in this article shall prevent a city or other local governing body from adopting and enforcing laws consistent with this article." Nothing in the "article" referenced requires that cities allow dispensaries to operate within their jurisdiction; as a result, the ordinance would not be inconsistent with the Compassionate Use Act. Indeed, State Planning and Zoning Law generally permits a city to exclude a particular type of use (especially where, as here, the use is not presently being operated). Accordingly, the Compassionate Use Act does not prohibit the City of La Quinta from declaring medical marijuana facilitates a public nuisance and banning them within the City. A number of other cities and counties (including Riverside County) have adopted total prohibitions on the operation of medical marijuana distribution facilities. Such jurisdictions have relied on the fact that federal law totally precludes such facilities and the fact that nothing in the Compassionate Use Act requires cities to allow medical marijuana dispensing facilities to operate within their jurisdiction. Additionally, such jurisdictions have relied on the negative "secondary impacts" of medicinal marijuana dispensaries on the health and safety of the community. In this regard, research has demonstrated the following secondary impacts of medical marijuana dispensing facilities in cities where these facilities had been allowed to operate: (1) large criminal element drawn to the dispensary; (2) street dealers with doctor's recommendation buying marijuana from the dispensary and then illegally selling the marijuana to people without a recommendation; (3) criminals in search of drugs robbing dispensary customers of the marijuana they purchase from the dispensary; (4) street level dealers trying to sell marijuana at a lower price to persons going to the dispensary; (5) thefts and robberies around the dispensary location; (6) people smoking marijuana in public around the dispensary or in other public locations; (7) people who have obtained marijuana from the dispensary driving under the influence of marijuana; (8) attempted burglary of the dispensary; (9) businesses located near dispensary suffering loss of business; (10) business owners located near dispensary feeling unsafe at work; (1 1 ) other illegal drugs being sold within the dispensaries; (12) dispensaries purchasing marijuana from undisclosed growers; (13) people attempting to illegally sell drugs to the dispensing facilities; and (14) doctors making marijuana recommendations of questionable integrity for a fee at the dispensaries. Medical Marijuana Dispensaries City Council Staff Reports These factors, in addition to the status of federal and State law, provide a basis for the City of La Quinta to prohibit medical marijuana facilities. ENVIRONMENTAL DETERMINATION The proposed Ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations Section 15061 (b)(3), because the proposed Ordinance involves a proactive measure to prohibit marijuana dispensaries, and there is no possibility that its adoption would have a significant effect on the environment. GENERAL PLAN CONSISTENCY The proposed Ordinance is consistent with the City's General Plan because the Ordinance does not change or alter any land use designations, densities or intensities of use set forth in the General Plan. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 . Motion to take up Ordinance No. , by title and number only and waive further reading. Motion to introduce Ordinance No. , on first reading amending the La Quinta Municipal Code to add Subdivision (DD) to Section 11 .72.030 ("Public Nuisances Declared") declaring medical marijuana dispensaries to be a public nuisance;. 2. Do not introduce Ordinance amending the La Quinta Charter and Municipal Code; or 3. Provide staff with alternative direction. Respectfully submitted, fim�]Plra� Douglas R.t-67ns, Assistant City Manager/ Interim Counity Development Director Approved for submission by: Thomas P. Genovese, City Manager Medical Marijuana Dispensaries City Council Staff Reports ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING TITLE 11, CHAPTER 11 .72 ("PUBLIC NUISANCES") OF THE LA QUINTA MUNICIPAL CODE TO ADD SECTION 11 .72.030(DD) TO DECLARE MEDICAL MARIJUANA DISPENSARIES A PUBLIC NUISANCE AND TO PROHIBIT MEDICAL MARIJUANA DISPENSARIES IN THE CITY WHEREAS, the City Council of the City of La Quinta is committed to protecting the public health, safety, and welfare of the community, and to meet these goals it is necessary for the City Council to adopt measures, from time to time, to meet threats to the public health, safety, and welfare; and WHEREAS, the federal Controlled Substances Act (21 U.S.C. § 801 et seq.) prohibits the manufacture, distribution and possession of marijuana; and WHEREAS, in 1996, the voters of the Sate of California approved Proposition 215 (codified as Health and Safety Code section 11362.5 et seq., and entitled "The Compassionate Use Act of 1996" ("Act"), to enable persons who are in need of marijuana for specified medical purposes to obtain and use marijuana under limited, specified circumstances. The State Legislature, pursuant to Senate Bill 420, also enacted Article 2.5, Medical Marijuana Program, of Chapter 6, Offenses and Penalties, of Division 10, Uniform Controlled Substances Act, of the Health and Safety Code of the Health and Safety Code of the State of California, as amended, which allows local governments to adopt and enforce laws consistent with Article 2.5; and WHEREAS, publicly available reports confirm that the establishment of medical marijuana dispensaries in local jurisdictions, including but not limited to the cities of West Hollywood and Anaheim and the County of Alameda, has resulted in serious negative secondary effects such as increases in crime, including violent criminal activity such as armed robberies and burglaries, at or near medical marijuana dispensaries and in the areas immediately surrounding such dispensaries; and WHEREAS, to avoid the threat to public health, safety, and welfare that would occur if medical marijuana dispensaries were permitted in the City, it is necessary to declare the establishment and maintenance of such dispensaries, whether stand-alone dispensaries or as part of an otherwise legal facility, a public nuisance that should be prohibited in the City; and G r ; Medical Marijuana Dispensaries City Council Staff Reports Ordinance No. Amending LCMC Title 11, Chapter 11.72 Public Nuisances-Marijuana Dispensaries June 5, 2007 WHEREAS, the adoption of this Chapter is consistent with federal law and Article 2.5, Medical Marijuana Program, of Chapter 6, Offenses and Penalties, of Division 10, Uniform Controlled Substances Act, of the Health and Safety Code of the Health and Safety Code of the State of California, as amended; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA QUINTA DOES ORDAIN AS FOLLOWS: SECTION 1 . AMENDMENT TO MUNICIPAL CODE TITLE 11 (PEACE MORALS AND SAFETY): La Quinta Municipal Code Chapter 11 .72, entitled "Public Nuisances," is hereby amended to add Subsection "DD" to Section 11 .72.030 ("Public Nuisances Declared") as follows: (DD) Medical marijuana dispensaries. As used in this Chapter, a "medical marijuana dispensary" is a facility or location which provides, makes available, or distributes medical marijuana to a primary caregiver, a qualified patient, or a person with an identification card, in accordance with California Health and Safety Code Section 11362.5 et seq. SECTION 2. ENVIRONMENTAL DETERMINATION; GENERAL PLAN CONSISTENCY: The City Council finds that adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations section 15061 , subsection (b)(3), in that the proposed Ordinance involves a proactive measure to prohibit marijuana dispensaries and does not have the potential to significantly effect the environment. The City Council further finds and determines that the Ordinance is consistent with the City's General Plan, in that the Ordinance does not change or alter any land use designations, densities or intensities of use set forth in the General Plan. SECTION 3. SEVERABILITY: If any section, subsection, subdivision, paragraph, sentence, clause or phrase, or portion of this Ordinance is, for any reason, held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council herby declares that it would have adopted this Ordinance and each section, subsection, subdivision, paragraph sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or effective. To this end the provisions of this Ordinance are declared to be severable. 2:56/015610-0002 1' 83177.02 a05/30/07 -2- Medical Marijuana Dispensaries City Council Staff Reports Ordinance No. Amending LCMC Title 11, Chapter 1 1.72 Public Nuisances-Marijuana Dispensaries June 5, 2007 SECTION 4. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after adoption. SECTION 5. POSTING: The City Clerk shall cause this Ordinance to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the BOOK of ORDINANCES of the City of La Quinta. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this day of 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: VERONICA MONTECINO, CMC, City Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California f, 2U � 2 1 56/0 1 5 61 0-0002 813177 02 a05/30/07 -3- Medical Marijuana Dispensaries City Council Staff Reports Ordinance No. Amending LCMC Title 11, Chapter 11 .72 Public Nuisances-Marijuana Dispensaries June 5, 2007 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss. CITY OF LA QUINTA ) I, VERONICA MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. which was introduced at a regular meeting on the day of , 2007 and was adopted at a regular meeting held on the day of 2007 not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution 98-109. VERONICA MONTECINO, CMC, City Clerk City of La Quinta, California DECLARATION OF POSTING I, VERONICA MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on pursuant to Council Resolution. VERONICA MONTECINO, CIVIC, City Clerk City of La Quinta, California 21561015610-0002 813177.02 a05/30/07 —4— �"! Medical Marijuana Dispensaries City Council Staff Reports a c COUNCIL/RDA MEETING DATE: June 19, 2007 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: Public Hearing to Consider Adoption of CONSENT CALENDAR: an Ordinance Amending the Municipal Code, Adding STUDY SESSION: Section 9.20.050 to Chapter 9.20 ("Zoning / Districts") to Prohibit Medical Marijuana Dispensaries PUBLIC HEARING: _L in all Zones RECOMMENDATION: Motion to take up Ordinance No. , by title and number only and waive further reading. Motion to introduce Ordinance No. , on first reading amending the La Quinta Charter and Municipal Code to add Section 9.20.050 to Chapter 9.20 ("Zoning Districts") to prohibit medical marijuana facilities in all zones. FISCAL IMPLICATIONS: None initially. Following adoption, the City may incur cost in connection with enforcement of these amendments. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The Planning Commission at its meeting of June 12, 2007, unanimously (4-0-1, Commissioner Daniels was absent) recommended approval of this Amendment regarding medical marijuana dispensaries in La Quinta. Generally speaking a medical marijuana dispensary is a facility or location that provides, makes available or distributes medical marijuana to a primary caregiver, a qualified patient, or a person Medical Marijuana Dispensaries City Council Staff Reports with an identification card, in accordance with and as defined in California Health and Safety Code Section 11362.5 et seq. Presently, to the knowledge of staff, there are no medical marijuana dispensaries operating in the City and the City's Zoning Code does not permit medical marijuana facilities in any zoning designation (however, there is no express prohibition either). Given that some jurisdictions in the Coachella Valley have observed a rise in the operation of these facilities, staff has brought this matter to the Council for consideration so that the Council can take proactive action to establish a clear policy. California law generally prohibits the possession, cultivation, sale, transportation and distribution of marijuana. (Health & Safety Code §§ 11357, 11358, 11359, 11360, 11361 , 11366, 1 136.5.) Accordingly, unless medical marijuana dispensaries fall within an exception to these laws, their operations plainly violate California law (and, as discussed below, federal law). In November of 1996, California voters approved Proposition 215, also termed the "Compassionate Use Act of 1996," which is codified at Health & Safety Code Section 11362.5. Section 11362.5 creates an exception to California's laws against the possession and cultivation of marijuana for "seriously ill" Californians who have received a doctor's recommendation, and for their "primary caregivers." In February of 2003, the California Legislature enacted SB 420, which added several medical marijuana-related provisions to the Health & Safety Code section 11362.7 et seq to amend and clarify the Compassionate Use Act. (Health & Safety Code § 1 1362.7, Legislative Notes.) Under SB 420 medical marijuana dispensaries must be licensed with the State as a health clinic or health facility; and must consistently assume responsibility for each of its customers' health and safety in order to be considered a "primary caregiver" and fall within the protections of Section 11362.7. In addition, a medical marijuana dispensing facility is not authorized to engage in for profit sales of marijuana. Thus, because of these requirements it is likely that many medical marijuana operations in the State are operating illegally. Aside from State law, the federal Controlled Substances Act (21 U.S.C. § 801 etseq.) prohibits the manufacture, distribution, and possession of various controlled substances, including marijuana. (See United States v. Oakland Cannabis Buyers' Cooperative (2001 ) 532 U.S. 483, 486.) Specifically, the Controlled Substances Act provides that "except as authorized by this subchapter, it shall be unlawful for any person knowingly or intentionally . . . to manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or dispense, a controlled substance." (21 U.S.C. § 841(a)(1 ). Medical Marijuana Dispensaries City Council Staff Reports The United States Supreme Court has ruled that the federal Controlled Substances Act does not contain any "medical necessity" exception that would permit the manufacture, distribution, or possession of marijuana for medical purposes, which is what California's Compassionate Use Act purports to accomplish. The proposed Ordinance, which completely bans medical marijuana dispensaries in all zones, does not violate the Compassionate Use Act or SIB 420 and complies with federal law. Notably, Health & Safety Code Section 11362.83 provides that "Nothing in this article shall prevent a city or other local governing body from adopting and enforcing laws consistent with this article." Nothing in the referenced "article" requires that cities allow dispensaries to operate within their jurisdiction; as a result, the Ordinance would not be inconsistent with the Compassionate Use Act. Indeed, State Planning and Zoning law generally permits a city to exclude a particular type of use (especially where, as here, the use is not presently being operated). Accordingly, the Compassionate Use Act does not prohibit the City of La Quinta from adopting a ban on medical marijuana facilitates within the City. A number of other cities and counties (including Riverside County) have adopted total prohibitions on the operation of medical marijuana distribution facilities. Such jurisdictions have relied on the fact that federal law totally precludes such facilities and the fact that nothing in the Compassionate Use Act requires cities to allow medical marijuana dispensing facilities to operate within their jurisdiction. Additionally, such jurisdictions have relied on the negative effect of medicinal marijuana dispensaries on the health and safety of the community. In this case, both the federal prohibition and the fact that the Compassionate Use Act does not require cities to approve dispensaries are sufficient reasons for the City to adopt this Zoning Code Amendment. ENVIRONMENTAL DETERMINATION The proposed Ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations Section 15061 (b)(3) because the proposed Ordinance involves a proactive measure to prohibit marijuana dispensaries and there is no possibility that its adoption would have a significant effect on the environment. GENERAL PLAN CONSISTENCY The proposed Ordinance is consistent with the City's General Plan because the Ordinance does not change or alter any land use designations, densities or intensities of use set forth in the General Plan. ..� r 43t Medical Marijuana Dispensaries City Council Staff Reports FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 . Motion to take up Ordinance No. , by title and number only and waive further reading. Motion to introduce Ordinance No. , on first reading amending the La Quinta Charter and Municipal Code to add Section 9.20.050 to Chapter 9.20 ("Zoning Districts") to prohibit medical marijuana facilities in all zones; or 2. Do not introduce Ordinance amending the La Quinta Charter and Municipal Code; or 3. Provide staff with alternative direction. RPcner.tfi illy ci ihmittar{ Douglas R. Pans Assistant Oty Manager-Development Services/ Interim Community Development Director Approved for submission by: Thomas P. Genovese, City Manager 43,9 Medical Marijuana Dispensaries City Council Staff Reports ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING TITLE 9, CHAPTER 9.20 ("ZONING DISTRICTS") OF THE LA QUINTA MUNICIPAL CODE TO ADD SECTION 9.20.050 TO PROHIBIT MEDICAL MARIJUANA DISPENSARIES IN ALL ZONES IN THE CITY WHEREAS, the City Council of the City of La Quinta is committed to protecting the public health, safety, and welfare of the community, and to meet these goals it is necessary for the City Council to adopt measures, from time to time, to meet threats to the public health, safety, and welfare; and WHEREAS, the federal Controlled Substances Act (21 U.S.C. § 801 et seq.) prohibits the manufacture, distribution and possession of marijuana; and WHEREAS, in 1996, the voters of the Sate of California approved Proposition 215 (codified as Health and Safety Code section 11362.5 et seq., and entitled "The Compassionate Use Act of 1996" ("Act"), to enable persons who are in need of marijuana for specified medical purposes to obtain and use marijuana under limited, specified circumstances. The State Legislature, pursuant to Senate Bill 420, also enacted Article 2.5, Medical Marijuana Program, of Chapter 6, Offenses and Penalties, of Division 10, Uniform Controlled Substances Act, of the Health and Safety Code of the Health and Safety Code of the State of California, as amended, which allows local governments to adopt and enforce laws consistent with Article 2.5; and WHEREAS, publicly available reports confirm that the establishment of medical marijuana dispensaries in local jurisdictions, including but not limited to the cities of West Hollywood and Anaheim and the County of Alameda, has resulted in serious negative secondary effects such as increases in crime, including violent criminal activity such as armed robberies and burglaries, at or near medical marijuana dispensaries and in the areas immediately surrounding such dispensaries; and WHEREAS, to avoid the threat to public health, safety, and welfare that would occur if medical marijuana dispensaries were permitted in the City, it is necessary to declare the establishment and maintenance of such dispensaries, whether stand-alone dispensaries or as part of an otherwise legal facility, a use that is prohibited in all land use zones; and WHEREAS, the adoption of this chapter is consistent with federal law and Article 2.5, Medical Marijuana Program, of Chapter 6, Offenses and Penalties, of Division 10, Uniform Controlled Substances Act, of the Health and Safety Code of the Health and Safety Code of the State of California, as amended; J Medical Marijuana Dispensaries City Council Staff Reports Ordinance No. Amending Title 9, Chapter 9.200 Adding Section 9.20.050 Adopted: NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA QUINTA DOES ORDAIN AS FOLLOWS: SECTION 1 . AMENDMENT TO MUNICIPAL CODE TITLE 9 (PLANNING AND ZONING): La Quinta Municipal Code Chapter 9.20, entitled "Zoning Districts," is hereby amended to add section 9.20.050 as follows: Section 9.20.050. Medical marijuana dispensaries. A. Medical marijuana dispensaries are a prohibited use in all zones. B. "Medical marijuana dispensary" means a facility or location which provides, makes available or distributes medical marijuana to a primary caregiver, a qualified patient, or a person with an identification card, in accordance with California Health and Safety Code Section 11362.5 et seq. SECTION 2. ENVIRONMENTAL DETERMINATION; GENERAL PLAN CONSISTENCY: The City Council finds that adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations section 15061 , subsection (b)(3), in that the proposed Ordinance involves a proactive measure to prohibit marijuana dispensaries and does not have the potential to significantly effect the environment. The City Council further finds and determines that the Ordinance is consistent with the City's General Plan, in that the Ordinance does not change or alter any land use designations, densities or intensities of use set forth in the General Plan. SECTION 3. SEVERABILITY: If any section, subsection, subdivision, paragraph, sentence, clause or phrase, or portion of this Ordinance is, for any reason, held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council herby declares that it would have adopted this Ordinance and each section, subsection, subdivision, paragraph sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or effective. To this end the provisions of this Ordinance are declared to be severable. SECTION 4. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after adoption. Medical Marijuana Dispensaries City Council Staff Reports Ordinance No. Amending Title 9, Chapter 9.200 Adding Section 9.20.050 Adopted: SECTION 5. POSTING: The City Clerk shall cause this Ordinance to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the BOOK of ORDINANCES of the City of La Quinta. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this day of 200, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: VERONICA MONTECINO, CMC, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California 4'. 0; 442 Medical Marijuana Dispensaries City Council Staff Reports Ordinance No. Amending Title 9, Chapter 9.200 Adding Section 9.20.050 Adopted: STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss. CITY OF LA QUINTA ) I, VERONICA MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. which was introduced at a regular meeting on the day of , 2007 and was adopted at a regular meeting held on the day of 2007 not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution 98-109. VERONICA MONTECINO, CIVIC, City Clerk City of La Quinta, California DECLARATION OF POSTING I, VERONICA MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on , pursuant to Council Resolution. VERONICA MONTECINO, CIVIC, City Clerk City of La Quinta, California Group Homes LQMC Table of Permitted Uses and Definitions 9.40.040 Table of permitted uses. ATTACHMENT 2 Land Use RVL RL RC RM RMH RH Group Living and Care Uses Child day care facilities as an accessory use, serving 8 or fewer A A A A A X children, subject to Section 9.60,190 Child day care facilities as an accessory use, serving 9-14 M M M M M X children, subject to Section 9.60.190 Congregate living facilities, 6 or P P P P P X fewer persons Congregate care facility C C C C C C Residential care facilities, 6 or P P P P P P fewer persons Senior citizen residences, 6 or fewer persons, subject to Section P P P P P P 9.60.200 Senior group housing, 7 or more persons, subject to Section X X X X C C 9.60.200 Time share facilities, subject to C C C C C C Section 9.60.280 Bed and breakfast inns C C C C C C Supportive housing X X X C C C Transitional housing X X X C C C Group Homes LQMC Table of Permitted Uses and Definitions 9.280.030 Definition of terms. "Congregate care facility" means a facility providing care on a monthly basis or longer and which is the primary residence of the people it serves. It provides services to the residents such as the following: dining, housekeeping, security, medical, transportation and recreation. Any commercial services provided are for the exclusive use of the occupants of the facility. Such a facility may be located in more than one building and on contiguous parcels within the building site. "Congregate living facility" means a single family residential facility which is licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer developmentally disabled persons or six or fewer persons undergoing treatment for alcohol or drug abuse and which is permitted in single family residences by operation of state law. (See also "residential care facility.") "Residential care facility" or "community care facility" means a residential facility which is licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer of the following: wards of the juvenile court, elderly persons, mentally disordered persons, handicapped persons or dependent and neglected children. Such a facility is permitted in all types of residences by operation of state law. (See also "congregate living facility.") "Senior citizen residence" means a residential care facility which is licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer senior citizens. "Supportive housing" means housing with no limit on length of stay, that is occupied by the target population as defined in subdivision (d) of Section 53260 of the Health and Safety Code 50675.14(b) and that is linked to on-site or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. ("Target population" includes adults with low income having one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health conditions, or individuals eligible for services provided under the Lanterman Developmental Disabilities Services Act and may, among other populations, include families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, or homeless people.) "Transitional housing" is buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. 16A THE DESERT SUN THURSDAY,APRIL 6,2017 r r r r , �• • MARCIO JOSE SANCHEZ/AP e Dave Jimenez,left,smokes marijuana with his friend Anthony A.in San Francisco on Nov.9. California law enforcement officials objected Wednesday to Gov.Jerry Brown's proposed streamlining of the state's marijuana regulations,citing safety concerns. d State moves to unite conflicting g pot laws MICHAEL R. BLOOD The head of California's newly estab- AND PAUL ELIAS lished marijuana agency defended the ASSOCIATED PRESS governor's proposal. "This proposed legislation helps LOS ANGELES - California law en- build an effective statewide regulatory forcement officials objected Wednes- system for cannabis to achieve our day to Gov. Jerry Brown's proposed goals of protecting public safety with streamlining of the state's marijuana clear and consistent rules that are not dd 0 regulations, saying his plan could en- overly burdensome," said Lori Ajax, danger public safety. head of the Bureau of Cannabis Medical Brown's administration released Regulation. She added: "It harmonizes documents late Tuesday outlining pro- the many elements of the two main stat- posed changes to square the state's new utes governing medicinal and adult-use recreational pot law with its longstand-, cannabis,while preserving the integri- ing law on medical marijuana. ty and separation of those industries." But the California Police Chiefs As- The police chiefs and other law en- sociation representing all of the state's forcement agencies supported legisla- . municipal police forces said the gover- tive passage of medical marijuana rules I i nor's proposal could turn traditionally last year but opposed Proposition 64, small marijuana businesses into much which legalized the recreational use of larger ones controlling the entire sup- marijuana after voters approved it in ply chain from growing operations to November. We roll u our sleeves for our communities. retail sales. The administration of Brown,a Dem- p The proposed legislation to allow sin- ocrat, has stressed that one regulatory Meet us: RabobankAmerica.com/WeAreRabobank gle businesses to hold multiple licenses framework is needed to avoid duplicat- to grow, distribute, manufacture and ing costs and confusing businesses in a sell retail marijuana would be an open- marijuana economy expected to grow to Palm Springs ing for criminals to consolidate the $7 billion in annual sales annually after 500 South Palm Canyon Drive booming industry,said association Ken recreational sales become legal in Cali- Y Corney. fornia next year. Suite 115 "The proposal favors big marijuana Hezekiah Allen,head of the Califor- (760)320-8214 grows over the welfare of our communi- nia Growers Association, also said his ties,"Corney said. organization has concerns with the Rabobank,N.A. The state's two laws took different elimination of the multiple licenses pro- Member FDIC approaches in many areas—including hibition. Connect with us © ® � `Tr"" NMLSa64e477 whether one entity could hold multiple "It could lead to mega-manufactures licenses to grow, manufacture, distrib- and mega-chain stores,"Allen said. ute and sell in retail stores. The gover- Representatives of the Los Angeles ♦ nor is seeking to"harmonize"those reg- Cannabis Task Force, comprising ulations.The proposal needs legislative Southern California marijuana busi- approval. nesses,said they're reviewing the plan. Medical marijuana providers are "This takes us another step closer to currently prohibited from holding both a uniform industry and puts this state in licenses but Brown proposes to lift that a position to set the national standard," restriction after it becomes legal to sell Avis Bulbulyan,president of the group, recreational pot in California on Jan.1. said in an email. Live Entertainment 7 NI hts a Week OVER 100 20171 Frank DiSalvo Show EZGO RXVs IN STOCK! 0 Thursday, Friday and Saturday 9:o Sings and Celebrates the Legacy of Frank Sinatra, Dean Martin and the R Great American g Book +� Larry Capeloto with Special Guest Artist Kristi King i The Great American Song Book, Country and Rock&Roll Monday,April 10,2017 / 6:oo pm to g:oo pm M: THURSDAY,APRIL 6,2017 I THE DESERT SUN I DESERTSUN.COM 15A 1 teen killed, 2 ij nured in J InerValley Health Plan near schools Foriealth. Not for profit. A I MICHAEL BALSAMO ASSOCIATED PRESS LOS ANGELES - Authorities are investigating whether a shooting that left a 15-year-old boy dead and two other teens critically wounded near schools in Wait! V y hat? When did that happen ? t South Los Angeles may have been linked to two other +� +� shootings,police said Wednesday. Rea' 7 You"re actually iy becoming The three teens were shot Tuesday at a strip mall y J near two elementary schools,a middle school and high school. Me ediccire Eligible e g T �j/Jtvo boys and a girl suffered gunshot wounds. All 1 three were taken in critical condition to a hospital, where one of the boys leased. We know hov you feel.We get it.Aging isn died. His name was not re- , t easy.And now you have Police were investigating whether the attack was to choose a Medicare Advantage Plan. Let us help clear things up.We linked to two other nearby shootings that occurred lat- er Tuesday and early Wednesday,police Deputy Chief Can't make aging easy, but we sure can make it easier! Phillip Tingirides said. 9 One person was killed in the Wednesday attack,he said. Investigators say the first shooting Tuesday may have escalated from an argument between students. "The unfortunate part is that this escalated from We offer two types of informational meetings: arguments and fights up to guns,"Tingirides said. Attend a Medicare StepByStepTM Meeting and in just one hour,you'll learn - - - everything you need to know about Medicare — from how to sign up and what's Storm to bring covered and what isn't, to the different options you didn't know you have, and what to do if you're still working. risk of flooding Then attend an Inter Valley Benefit Meeting and learn all that our plan ASSOCIATED PRESS has to offer you. From copayments, (most of them are zero) to network providers, SAN FRANCISCO - Forecasters predict a strong Primary Care and Specialists-let us answer any questions you have about spring storm that will pass through Northern Califor- Inter Valley Health Plan, nia has the potential to flood a river and soak Bay Area cities. The San Francisco Chronicle reports Reno Nation- For us, health care is personal. Over the last 36 years, we've lived and al Weather Service forecasters predict the storm will last Thursday through Saturday and could flood the worked right here in Southern California. Our Medicare Specialists are local and our Feather River at Portola in the Sierra. Forecaster Scott McGuire says the storm will also Medicare Information &Vitality Center is conveniently located. bring 1 to 4 feet of snow, an unusual amount for the Sierra in April.He says it will be the biggest storm the Sierra has seen in April in a decade. You'll always talk to a real person. We don't use impersonal phone prompts. San Francisco and Oakland can expect 1 to LS inch- es of rain,which Monterey National Weather Service A real person always answers the phone. forecaster Steve Anderson says is normal for this time of year. --- - - - — -- — - - - A Personal Care Team Member will be there to help. As an Inter Valley Health Plan member you'll have a personal point of contact to answer your questions, help House arrest for with your appointments and referrals if needed and, in general, help you get the most company owner from your health plan benefits. p Y in worker deaths owl mediC s epb rstep"' Inter Valley Benefit Meetings ASSOCIATED PRESS i SAN FRANCISCO-The owner of a San Francisco Palm Springs Meeting Palm Springs Meeting granite company has been sentenced to house arrest and probation in connection to the death of two work- ers who were crushed by a large slab of granite while Wednesday,April 1 Zth Tuesday,Apri 111 th on the job. ! 555 S. Sunrise Way 555 S. Sunrise Way The San Francisco Chronicle reports that Meng Peng, the owner of the now-closed Galaxy Granite, Palm Springs, CA Palm Springs, CA was sentenced Tuesday to one year of house arrest, 1:00pm - English 1:00pm - English three years of probation and ordered to pay unspec- ified restitution.He previously pleaded guilty to two counts of felony involuntary manslaughter and three Indio Meeting Indio Meeting labor code violations. Peng and his employees,Hector Vazquez and Phil- ip Marich, were unloading the slab on Feb. 7, 2014, W Tuesday,April 18th Wednesday,when it fell and killed Marich and Vazquez. y, April 19th 81880 Dr. Carreon Blvd. 81880 Dr. Carreon Blvd. - - - Suite B106, Indio CA Suite B106, Indio CA 9:00am English - 10:00am Spanish 9:00am English - 10:00am Spanish Sanctuary City' sign in Malibu f �� g space is limped, s+o our se;�f Then join us for one called a prank of these informative classes. For reservations or information, please call 1-760-992-5581 and speak with Gloria. ASSOCIATED PRESS MALIBU-Malibu has removed an official-looking I rater Va I I ey Health Plan sign calling attention to its status as a sanctuary city. Call 1-866-756-4407, or TTY/TDD 1-800-505-7150. The sign,posted along the Pacific Coast Highway, said, "official Sanctuary City: Cheap Nannies and For accommodation of persons with special needs at sales meetings, call the number Gardeners Make Malibu Great!' (Boyle Heights Not above. Call seven days a week' 7:30am to 8:00pm or visit So Much)." Boyle Heights is a Los Angeles neighborhood that's www.ivhp.com i ti. r I 4 / R l4.1 r, k Ir t of 1* Air /`� alb., �+ ; - •._ ' Pot growers have turned public lands 1} _ :"r` ` ' into industrial agricultural sites. And r the ecosystem effects are alarming. { r X ' BY JEFF WHEELWRIGHT t PHOTOS BY MORGAN HEIM AL �A r N A HOT August � .cv d,. s s ♦wA, is�,' - •. ... ••. morning, Mourad ,A "a'_ '' E �, ' •,� ' rfi , Gabriel steps out of his pickup onto the gravel road that winds r�� pad "y� • 'r. .' � ; • �s i up the side of Rattle- .;`f y Y �.� ,. �• .��. ;` #10 #15 , snake Peak. Dark-bearded , " �._ . , . Klamath Modoc 41,833 plants 242 plants and muscular,the research ecologist CWN •` ` �_ g ` ` - � + #2 sports a uniform of blue work clothes, 1� �" 4. -`rt t ti, Tyr`; a .. . t s�' Shasta-Trinity sturdy boots and a floppy, Army-style f , zg` `" '` a; #11 308,889 plants #g ' r t ; .... s Six Rivers .. . camo hat. He straps on a pistol. «Just �. ' +.} �' Lassen S �. .z �'� 33,588 plants ;+ 48,775 plants s to let you know,"Gabriel says,sensitive to the impression the gun makes, "it's #5 public land,so I open-carry." ', � s '�� l Plumas Another 100-de ee day is promised. - ' r� �. .4 #7 102,323 plants gr Y 1? "- t.�` % Mendocino Gabriel and his four field assistants are ,. +� "° `` ��OF `. '- "-.- s9,8sr plants #8 headed to work in California's Plumas ,-� Tahoe _ c 14.*''Ch- 49,489 plants National Forest,a few hours drive from , Lake Tahoe, at the northern terminus of the Sierra Nevada. The U.S. Forest '7` t #13 Stanislaus 4 Service (USFS) has enlisted Gabriel to - �►` ` c` ` r _ �! '' s3 t'• — :ice--�� lc 15, 8 pants 14 assess the scars from rampant mart ; l yo juana cultivation. Today's field site: an _` ' -►�-� _ ,, -�' ~ 9,053 plants illegal marijuana plantation known as #4 the Rattlesnake Grow. Gabriel doesn't take chances because ^- - - Sierra - �® `5..-. _y �,_ -F� _ .. :�-� - '' < +v' � y � � 122,523 plants he's been threatened personally. In y _ 2014,someone poisoned his family dog with a pesticide that's used at the grow ''` _ J-``�- � � • Sequoia sites. The intruder crept onto Gabriel's to marijuana plants at an illegal grow site on public lands. Sequoia property at night and scattered poi- , soned meat in his backyard. And last year during raids on plots elsewhere in — environmental regulation has been "trespass grows" are never detected. wild lilac shrubs impede the way. #3 California,two police dogs were stabbed slow to catch up. Commandeering Even after sites are cleared,the shadowy Ten years ago, the Moonlight Fire Los Padres by men fleeing the scene. streams, growers divert the water into growers may reclaim them the next year. destroyed 65,000 acres of forest in the 162,120 plants #6 So whenever Gabriel enters a cultiva- high-tech greenhouses,to the detriment "The public doesn't understand the Plumas. The marijuana growers stole •• Angeles tion site with his research team—even of the aquatic life lower in the drainage, industrial scale of this," says wildlife into the broad footprint left by the - - 72,607 plants one that's been abandoned, as this one including the threatened coho salmon. biologist Craig Thompson. blaze in dozens of places.In the section #12 is—he always goes in first. Biologists for the California Depart- But if you have heard anything about 6 we're hiking,the cut trails and cleared '' San Bernardino y g gl p y Yt g R g. Y 23,530 plants Most of the U.S.domestic marijuana ment of Fish and Wildlife have shown streams being polluted or animals and a series of plots on a steep slope above supply is raised in California. Some pot that thirsty marijuana plantations can birds being poisoned by marijuana pro- a ravine. Then the trespassers dug out is grown on private property for legal dry up water sources. duction,it's almost certainly because of a three springs and diverted their flow into use by medical marijuana patients. What's more,the rest of the crop—the Gabriel,a soft-spoken scientist who now half-inch black plastic piping, which These operations can be monitored,and vast black-market portion—is planted and then unleashes his inner Rambo. they threaded through the cover of veg- i with Californians having legalized recre- on public or tribal lands by people who a etation to their network of plots below. ational pot last November, the regula- ignore the environmental consequences AFTER THE BUST o The waterlines emptied into tarp-sealed tion is sure to tighten. But in popular of their activity.When they're captured, Gabriel takes his team of biologists over o pits that could store hundreds of gallons pot-growing regions like Humboldt, some turn out to be Mexican drug cartel the top of an open,sunbaked ridge and of water. Having started thousands of j Mendocino and Trinity counties — workers, and others come from smaller down the other side of the mountain. o marijuana seedlings in plastic cups, the I closer to the Northern California independent groups U.S. authorities Immediately, burnt and toppled trunks growers planted them among the shrubs. coast in the so-called Emerald Triangle concede that the great majority of these of pine and fir and head-high tangles of throughout the plots Each bright green 1 ..,�. 4L i ^�.� S �S ,ry F � •-� � 7 � S s i - { - t" ' r .fir '���[. - .aim. —ri•_-_ x _. _ 1_ r�.�.�i �.. _ S . - L. _ - ._.ii_. 'M f r..� t. •i �. S ti a High Sierra stream(left)near a marijuana grow site.TestsCraig Thompson,a USFS biologist,drops a water filter into Researchers examine a Pacific fisher carcass(left).The animalsare struggling in part due to rat poison used by illegal marijuana growers.Forest Service officials catalog fertilizers(above)found ehave turned upbiologistgrows.Wildlife • t . bottle.handles a suspected neurotoxin found in a Gatorade • pounds plant was irrigated via drip lines, some "He's passionate. He's a character," completing his Ph.D. at the University familiar brand of AR. But how did a If the growers scattered AR and the and examined all the causes of mortal- triggered by a battery-powered timer. says USFS's Thompson, who collabo- of California,Davis.He credits an uncle forest carnivore absorb a pesticide typi- rodents were sapped by internal bleed- ity in their collared fishers. Predation Although the mountainside faced north rates with Gabriel on research. "He has for interesting him in the outdoors.The I tally used around farms and houses? ing,they would become easier prey for accounted for 70 percent of the deaths, and east, light was no problem. Where continued to shine a light on the issue, uncle was also a taxidermist; hence, Gabriel remembers wondering if fishers.Bioaccumulation,as the process disease an additional 16 percent, and it used to be blocked by trees,the strong though it's still under the radar." young Mourad developed an interest in this one fisher was an outlier. "So we is known, would pass the rodenticide poisoning, which until lately hadn't California sun now slathered the crop. the interiors of animals.In high school,* went back to the archival liver tissue," up the food chain, where concentra- been considered, 10 percent. The new Gabriel was with the rangers and CONNECTING THE DOTS a vocational aptitude test suggested he says. When he inspected frozen tions increase.The fishers in turn might factor might explain why fishers weren't deputies when they busted the site in The first glimmer of impacts to wildlife that he could be a game warden, park specimens and collected additional have become prey for bobcats and rebounding as fast as they might be.Pes- 2015 and uprooted more than 16,000 came to Gabriel from fishers.A fisher— ranger or biologist. As an undergrad carcasses from colleagues, Gabriel dis- mountain lions. ticides might be the major factor in most plants. Judging by bags left around the a type of weasel whose body is about the at Humboldt State University, he took covered that rodenticides had, if not Raids turned up empty bags of AR of the deaths, even those not poisoned site back then,he suspects at least 4,000 size of a housecat's —is a denizen of courses supporting all three. Gabriel killed, then at least tainted 85 percent and sometimes even mounds of the outright. "You can argue that the ani- pounds of potent fertilizer were used. deep woods.It has a wide face and long met his future wife, Greta Wengert, of expired fishers. pesticide.To test their hypothesis about mals that are affected by rodenticide are He also recorded several empty contain- furry tail, and it can run up and down while they were both studying wildlife "It took a while to connect the dots," bioaccumulation, Thompson, Gabriel weaker,"Thompson says, "and that the ers of a concentrated organophosphate trees like the woodrats and squirrels it biology in college. After marrying, the he says.From his field experience he was and state toxicologists tried to tie the predation rates on them, as I suspect, insecticide_a lethal nerve poison that's hunts. Fishers have never been overly two founded IERC in Blue Lake,Calif familiar with illegal pot grows, which levels of AR exposure in fishers with are higher." toxic to wildlife. abundant in the mountains of the West Gabriel's work for the fisher reintro- had plagued the backcountry terrain for the locations of grow sites found by law Gabriel's non-profit organization, Coast,and their population plummeted duction project was lab-based. He con- ! 20 years or more. "We've all run into it. enforcement. SOUNDING THE SIREN Integral Ecology Research Center after a century of logging and trapping. ducted necropsies of dead animals that We've been trained," Gabriel says. "If The researchers analyzed 46 female In a parallel case, rodenticides have (IERC), was hired to assess the dam- In the 21 st century,biologists have tried Thompson's field researchers had picked s, you come upon a site,you do a 180 and fishers that died over five years. Their worked their way into some of Califor- age to water sources, soils and sensitive to restore the Pacific fisher by reintro- up. Examining a fisher carcass one day, walk away." results showed that the animals that nia's northern spotted owls,a threatened plants and animals. They also invento- ducing young animals and tracking Gabriel found that its organs had turned lived longest had the least rodenticide species.The owls also eat tainted rodents ried toxic waste, piping, camp materi- them with radio collars. But the fish- to mush. The fisher had been poisoned MOUNDS OF PESTICIDE in their livers and the fewest grow sites near grow sites. The evidence here is als and trash. Now it's up to the Forest ers' expansion has been slow because by a compound that blocks clotting and Law enforcement officers from different within their home ranges. Conversely, less direct, and depends on analyses of Service to decide how to repair the dam- they have been dying more rapidly than prompts unchecked internal bleeding,a agencies asked him if rat bait from grow animals with roughly four or more grow a competing species, the barred owl. age. Gabriel, enlisting local volunteer researchers expected. so-called second-generation anticoagu- sites might be the culprit.It made sense; sites nearby died the soonest. For decades, barred owls from Eastern groups,will assist with the cleanup,too. Gabriel joined the fisher reintroduc- lant rodenticide (AR). D-CON, corn- woodrats and squirrels would gnaw the In a 2015 paper in the journal PLoS states have been invading the breeding The service he offers is soup-to-nuts. tion project in 2009.At the time,he was monly used against mice and rats, is a marijuana plants. ONE, the researchers stepped back territory of the northern spotted owl i Aniinals at Risk in California, Oregon and Washington. s Already on the ropes from the logging Dried-up streams,polluted water and toxic chemicals from illegal •row sites of old-growth woods, spotted owls were in Northern California put a .• disappearing, and so biologists tried a desperate measure:shooting barred owls. " `. { = 3 COHO SALMON At the Hoopa Valley Indian Reserva- c r ` R' tion in Humboldt County,forestry biolo- Growers divert water gist Mark Higley, who has helped with from streams,harming the fisher project, also takes part in the species.this key culling of barred owls. Higley says he ! f c and his staff have had run-ins with ille- gal growers, "taking risks we shouldn't >> take."After Gabriel's breakthrough with ¢ — F AR and fishers, Higley sent him liver1- + samples of more than 155 barred owls ► �" that had been collected at Hoopa.More ��• ` - than half were positive for rodenticide. — Gabriel also had positive results from ��'►_ ' �� PACIFIC FISHER two spotted owls that were hit by cars. T�_ :..�r��•--• 'u -,- Since spotted owls are endangered,Hig- i These creatures are _ >: 'fir ley and Gabriel use barred owls as a sur- ="� __ 4 i { �`-' ,� among the hardest hit by grow operations. ae rogate—their dietary habits are similar — and infer that up to half of spotted � � � _� � �► ;` `�_,-�"�` �- owls near grow sites might be exposed to "^ VTrodenticide. Now Thompson is looking ��. for other examples of bioaccumulation. ;. , ,, He's testing mountain lion scat for rat Z" 4 _ poison and pesticides Only Gabriel,Thompson and a hand- a rn - ful of other biologists are investigating the ecological effects of toxins from the o j "The problem is getting worse,"he says, the site, the biologists collect at least better understand the selection process, trespass grows. The funding opportuni- frustrated."Who's documenting this?" five samples of soil in plastic bags. The it might be possible to better handle ties are scant, and the fieldwork is hard a samples will be tested for various pes- these trespass grows. ' and potentially dangerous. Although THE UNSEEN GROWER ticides. Five-samples for 1,5W square Later, over a beer in his motel room, growers who have been surprised at their tjAmid the lilac shrubs, pungent with yards might not seem like much."That's Gabriel says, "There's no way I can do Owls eat rodentsplots haven't hurt anybody — usually a pollen, marks of the Rattlesnake Grow all we can get funded for,"says Gabriel, this physically 15 or 20 years from now." have been weakened or killed by rat pois / they just run away — sometimes shots aren't immediately obvious. Soon the who has rejoined the others. He reports He figures he's got eight more years, are fired. i paths and waterlines of the growers can spotting boot tracks "I think they came after which he hopes the field will be Adding to the frustration, many o be spotted,and then other items like fer- back and took the tent and sleeping big enough for him to exit and do some- low, t ti important questions are nearly impos- � tilizer bags,heavy-duty plant shears and bags,probably sometime last spring." thing else,leaving others to carry on the y , Bible to answer.At what levels do agricul- matted clothing,which the wilderness is Of all the species Gabriel studies, the research.He's trying to spur other biolo- tural chemicals and rodenticide interfere o swallowing up. human animal—the unseen grower— gists to study illegal grows too.He wants r with fishers' reproduction? How much o As Gabriel investigates a stream is the hardest for him to figure out."I've to track the long-term effects of the poison does it take to weaken an animal s angling toward the ravine,the four techs visited between 100 and 200 grow sites," chemicals by incorporating specialties enough that it becomes easy prey for split into pairs. Two young field biolo- he says,leaning against a fallen tree. He like hydrology and soil science. _ fishers and bobcats?Wildlife toxicology's gists push off in opposite directions, wonders, why would growers plant so "As an ecologist, I love working on pitfall is that lab experiments can't be - j using their GPS trackers to measure high up on this ridge with limited water? species of conservation concern," he +a j performed on wild populations,let alone - plot boundaries. "We saw a different approach last says. "I want a stable population of on sensitive and rare species. - s The slanting plot, still faintly pocked week," Gabriel says. "Just 60 meters fishers and owls. I want basic research "You have these snippets of field-OTHER ANIMALS EXPOSED INCLUDE i-I with bare spots where the marijuana from a paved road they were growing and applied management. Not science based evidence," Gabriel says. "Maybe grew, is about 50 yards wide and 100 5,000 plants. Maybe one criminal orga- just for the sake of science but science Golden eagles -Red-tailed hawks -Bobcats -Martens you could do a liver biopsy on a captive Z yards long.They crisscross the area with nization decides, `We'll go deep in the as a solution."m Joaquin.Great horned -Canada geese -Kangaroo rats -San fisher,but it would cause bleeding,and if cans of spray paint,tagging empty bags wilderness,'and another,`Let's put it by owls -Coyotes -Mountain lions kit foxes an anticoagulant were affecting the ani- 2 I of chemicals as they count them.When the road.' You're trading easier access Jeff WheeiMfight a contributing -Barn owls -Minks -Turkey vultures 2 mal,[the test]could push it over the edge. 9 they take a break, they huddle in the for greater risk." editor at Discover,has written two books Source:California Department of Fish andWildlife I'll leave that work to someone else."His I shade thrown by the charred trees. He sees each site as a piece of a on environmental science and has reported role, as he sees it, is sounding the siren. Walking on a diagonal line across . larger puzzle. If researchers could on wildlife issues for four decades. --T City of Palm Desert - Speaker Card Meeting Date: 2bb.4 If you are attending a City Council or other City Committee, Commission, or Board meeting and would like to address the officials, please complete the following information and give it to the City Clerk and/or Secretary in advance of the meeting. Thank you. Name: Address: -V Telephone: I would like to speak about: Subject: , Agenda Item? Yes No Support Oppose Completion of this card is voluntary. You may attend and participate in the meeting regardless of whether or not you complete this document. Its purpose is to aid staff in compiling complete and accurate records. Thank you for your courtesy and cooperation. �--'-� City of Palm Desert - Speaker Card Meeting Date: If you are attending a City Council or other City Committee, Commission, or Board meeting and would like to address the officials, please complete the following information and give it to the City Clerk and/or Secretary in advance of the meeting. Thank you. Name: / o/vt Z/Vm'6 `- Address: 3L/:5'61D z 09 7e; Telephone: I would like to speak about: Subject: k �'.�ee 'vns ' .-,,"�,'spro%`��� �� Agenda Item? Yes No Support Oppose Completion of this card is voluntary. You may attend and participate in the meeting regardless of whether or not you complete this document. Its purpose is to aid staff in compiling complete and accurate records. Thank you for your courtesy and cooperation. tl - CAI( a October 11, 2017 To: The Mayor, City Council and Staff of Palm Desert Fr: Raymond Rodriguez, Casuelas Cafe/Cork Tree Re: RD Hubbard, Cannabis Related Business Licensing Dear Mayor Harnik, Members of the City Council and City Staff, As you consider appropriate licensees for the developing Cannabis business sector,please give strong consideration to the efforts of Mr. RD Hubbard. For decades he has proved himself a responsible liquor licensee. Further, his innovative business efforts, strong staff support, community involvement and perhaps most importantly, ability to satisfy a wide ranging membership in a professional, safe, and highly desirable manner surely have earned him top consideration in our City. I have no doubt he is precisely the type of licensee to best help steward this developing sector in Palm Desert. Respectfull c RayIR6;�- ez 760 217 4705 73703 Hwy I I I Palm Desert, CA 92260 73-703 Highway 111 • Palm Desert,CA 92260 • (760) 568-0011 9 Facsimile (760) 776-9578 i OUNDATION September 5, 2017 Eric Ceja, Director of Planning City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 Re: Regional Access Project Foundation office building request for a buffer within your cannabis ordinance zoning. Mr. Ceja: On August 24th, 2017, 1 testified at the Public Hearing on Ordinance number 1329, Case number ZOA 17- 027 related to your future cannabis operations and zoning for the City of Palm Desert. Since your proposed map includes areas of the City that have buffer zones, we would ask that you consider including our building at 41550 Eclectic St., Palm Desert. We respectfully request a 600 foot buffer zone, from the property line, around our building. The City's proposed zoning map illustrates the potential for cultivation and manufacturing to be located in our area. This is a concern for our tenants and our Board of Directors. Since both the RAP Foundation and the Center for Nonprofit Advancement have activities which include young people, families and training for other Nonprofits, we believe that it would be in the best interest of both the City to afford us this buffer and the RAP Foundation. At the time of the Public Hearing I asked the Council if they could refer us to Eric Ceja to work with him on the new zoning map. Since the Public Hearing, I have met with Eric Ceja who suggested I memorialize our request. Toward that end, I am asking to work with staff to accomplish this request. Thank you in advance for your kind consideration. ely, Mark Moran, Chairperson Regional Access Project Foundation Center for Nonprofit Advancement Inclusions: Tenant List Board of Directors Roster Cc: Honorable Mayor Harnik Honorable Mayor Pro Tern Jonathan Honorable Council Member Kelly Honorable Council Member Nestande Honorable Council Member Weber 41450 Eclectic St. Palm Desert, CA 92260 Phone: 760-674-9992 * Fax: 760-674-9923 RAP Foundation Board of Directors 027-1 Account Organization Name Amber Amaya New America Media Anayeli Zavala County of Riverside Board of Supervisors Ann Dew Dew Household Annica Meza-Dawe Brandman University Coachella Valley Unified School District Beartriz Gonzalez Property Acquisition Corp Claudia Galvez Clinicas de Salud del Pueblo Inc. Craig Borba Retired Dr. William Kroonen Retired Jan Pye Desert Oasis Healthcare Joe Hayes First Bank Larry Parrish Retired Manuel Perez County of Riverside Board of Supervisors Mark Moran Platinum Strategies Group Mike Gialdini Retired Ricardo Loretta Reynaldo J Carreon M D Foundation Rosemary Ortega Ortega Household Coachella Valley Unified School District Rudy Gutierrez Property Acquisition Corp Desert Sands United School District School Tori St Johns Building Corporation Tricia Gehrlein Clinton Foundation Van Tanner Retired CURRENT TENANT LIST-8/25/17 • The Community Foundation of Riverside and San Bernardino Counties • S.M.A.R.T. (Science, Math and Robotics Technology) Education • GetlnMotion • Voices for Children • El Sol Neighborhood Education Centers • Integrated Learning Institute J • The Reynaldo J. Carreon MD Foundation • OneFuture Coachella Valley • Guthy-Renker • First 5 Riverside • Coachella Valley Autism Society of America Gateway Industrial Park at Palm Desert Property Owners'Association, Inc. PO Box 12950 Palm Desert, CA 92255 CRY Of Palm Desert (760) 770-3100 • Fax (760) 770-3199 JUN $ 0 2017 June 16, 2017 Community Development Mr. Noel F. Ramos Senior Vice President Wilson Johnson Commercial Real Estate 72100 Magnesia Falls Drive Suite 2 Rancho Mirage, CA 92270 Re: Your Letter to Property Owners dated May 3, 2017 Dear Mr. Ramos, We are in receipt of the referenced letter, copies of which were apparently sent to all owners of parcels within the Gateway at Palm Desert Industrial Park. Please be advised that all proposed uses within this development are subject to review and approval or disapproval under the association's CC&Rs and Design Guidelines. It is therefore necessary to point out that your statement that "This means that your property, which is located in one of the targeted areas and zoning designations, will be allowed to have a marijuana cultivation business on it." is inaccurate in at least some cases. Furthermore, the City will no doubt impose requirements regarding distances from marijuana related businesses to other land uses, e.g. residential and school properties as well as marijuana related businesses themselves. The city will no doubt require a Conditional Use Permit for any such business. Such permits are discretionary and may or may not be granted in any given case. Please be certain that any and all prospects with whom you deal in this regard understand both the City's and the Property Owners'Association's approval rights and processes. Sincerely, Gateway Industrial Park at Palm Desert Property Owners'Association, Inc., Thomas S. Noble President Cc: Gateway Property Owners City of Palm Desert Scott Wilson Matt Johnson Tyrus Cobb