HomeMy WebLinkAboutAB6003 - Reefer Madness PacketADMINISTRATIVE APPEALS BOARD STAFF REPORT
DATE: January 25, 2023
SUBJECT: APPEAL OF THE ADMINISTRATIVE FINE OF $5,000 TO REEFER
MADNESS, LLC FOR VIOLATION OF 5.55.205(A)(2) and 5.55.110 OF
THE PALM SPRINGS MUNICIPAL CODE
BY: Office of Special Programs Compliance Department
SUMMARY
Steven Wijatyk, on behalf of Reefer Madness, LLC has requested an appeal of the
administrative citation and fine of $5,000.00 for failure to keep stored cannabis products
in a secured and locked safe room, safe, or vault and failure to comply with all State and
Local laws.
RECOMMENDATION:
1)Open the Appeal Hearing and accept public testimony.
2)Adopt Resolution No. ______, A RESOLUTION OF THE ADMINISTRATIVE
APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE
APPEAL OF THE ADMINISTRATIVE FINE OF $5,000 TO REEFER MADNESS,
LLC FOR VIOLATION OF 5.55.205 (A)(2) and 5.55.110 OF THE PALM
SPRINGS MUNICIPAL CODE
BACKGROUND:
On November 6, 2019, City Council adopted Ordinance 2005 amending Palm Springs
Municipal Code (“PSMC”) 5.55, Cannabis Related Business and Activities. Prior to the
amendment Chapter 5.55 did not establish penalties and enforcement for violations of the
municipal code. The intent of the amendment was to establish significant penalties and
provisions for enforcement. On October 14, 2021, City Council adopted a Resolution
updating the City of Palm Springs Administrative Fine Schedule, establishing fine
amounts for violations of the cannabis regulations contained in PSMC Chapter 5.55.
The City provided outreach materials to cannabis businesses and stakeholders informing
them of these changes. Additionally, in October 2021, the Department of Special Program
Compliance monthly newsletter provided a copy of the administrative fee schedule to all
business owners and stakeholders and in February 2022 introduced the implementation
Administrative Appeals Board Staff Report
January 25, 2023 - Page 2
Cannabis Related Business and Activities Appeal – Reefer Madness, LLC
of code enforcement for cannabis. Prior to the issuance of citations, code enforcement
staff provided in-person outreach and warnings to cannabis businesses advising of
violations.
On February 2, 2022, the code compliance officer assigned to cannabis enforcement
conducted an on-site cannabis compliance inspection accompanied by the business
owner, Steven Wijatyk, that included a full audit of the business operating practices to
check for compliance with all applicable state and local adult-use cannabis-related
business operating requirements. During this inspection, it was noted that there were
items found to be out of compliance related to the business's limited access areas,
inventory storage, and video surveillance system (ATTACHMENT “4”). All the non-
compliant items were discussed with the business owner, and a timeline for correction
and reinspection was established.
On February 3, 2022, the code compliance officer assigned to cannabis enforcement
sent a follow-up email to the business owner, Steven Wijatyk, providing guidance and
references to applicable state and local regulations related to questions that came up
from the business during our post-inspection discussion from the previous day. The email
also included specific guidance and references related to the inventory storage area that
was found to be out of compliance (ATTACHMENT “5”).
On March 15, 2022, the code compliance officer assigned to cannabis enforcement
conducted a follow-up on-site inspection to check for compliance for the items that were
identified as needing to be corrected from the previous operational audit. The business
owner, Steven Wijatyk, detailed the corrections made to the video surveillance system
and the installation of a locking mechanism to secure the limited access area. He also
stated that he had procured materials to create a locked safe room for inventory storage
but was awaiting a part that was left out of the original shipment of the materials so that
item remained out of compliance but was expected to be corrected not long after.
On July 20, 2022, the code compliance officer assigned to cannabis enforcement
conducted an on-site cannabis compliance inspection accompanied by a supervisor at
the business, Gustavo Flores, that included an audit of the business operating practices
to check for compliance with all applicable state and local adult-use cannabis-related
business operating requirements. During this inspection, it was noted that the corrections
needed to the inventory storage area, as detailed in prior visits, remained outstanding
and the limited access areas were being left unsecured (ATTACHMENT “6”).
STAFF ANALYSIS:
Reefer Madness, located at 4693 Ramon Road operates as a dispensary and lounge.
They commenced operations in March 2020. In July 2022, during an on-site drop in
inspection it was found that Reefer Madness did not have their cannabis product kept in
a secured and locked safe room, safe, or vault, and that their limited access areas were
Administrative Appeals Board Staff Report
January 25, 2023 - Page 3
Cannabis Related Business and Activities Appeal – Reefer Madness, LLC
not properly secured. Both the State and Local regulations require that all inventory stored
on the licensed premises shall be secured in a limited-access area:
Palm Springs Municipal Code 5.55.110 Compliance with Laws.1
It is the responsibility of each Adult-Use Cannabis Business to ensure that
it is, at all times, operating in a manner compliant with all applicable state
and local laws, and any regulations promulgated thereunder. Nothing in
this Chapter shall be construed as authorizing any actions which violate
state law or local law with respect to the operation of an Adult-Use
Cannabis Business. It shall be the responsibility of the owners and the
operators of the Adult-Use Cannabis Business to ensure that the Adult-
Use Cannabis Business is, at all times, operating in a manner compliant
with MAUCRSA, all applicable state and local laws, regulations and
guidelines, any subsequently enacted State Law or regulatory, licensing,
or certification requirements, and any specific, additional operating
procedures or requirements which may be imposed as conditions of
approval of the Adult-Use Cannabis Permit. Nothing in this Chapter shall
be construed as authorizing any actions which violate State Law with
regard to the operation of an Adult-Use Cannabis Business.
Palm Springs Municipal Code 5.55.205 (A)(2) Miscellaneous
Operating Requirements. Additional Requirements for Dispensaries.
2. Dispensaries shall implement and maintain sufficient security
measures to both deter and prevent unauthorized entrance into areas
containing Cannabis good in compliance with Section 26070(j) of the
California Business and Professions Code and any rules promulgated by
the State licensing authority. Security measures shall include, but are not
limited to, the following:
b. Establish limited access areas accessible only to authorized
dispensary personnel.
c. Store all Cannabis goods in a secured and locked safe room, safe,
or vault, and in a manner as to prevent diversion, theft, and loss, except
1 In November 2022 the Department of Cannabis Control adopted a consolidated regulatory package. These
regulations maintained several provisions of prior regulations; however, changes related to Storage of Inventory were
made. At the time of citation, the requirement for storage of inventory required all inventory stored on the licensed
premises shall be secured in a limited-access area. The newly adopted regulations now state, “All cannabis and
cannabis products must be stored within the license premises.”. The changes to State regulations do not impact the
local regulatory requirements which supersede the State.
ATTACHMENT 1
RESOLUTION NO. ___
A RESOLUTION OF THE ADMINISTRATIVE APPEALS
BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA,
ON THE APPEAL OF STEVEN WIJATYK, ON BEHALF OF
REEFER MADNESS, LLC FOR APPEAL OF THE
ADMINISTRATIVE FINE OF $5,000 TO REEFER
MADNESS, LLC FOR VIOLATION OF 5.55.205 (A)(2) and
5.55.110 OF THE PALM SPRINGS MUNICIPAL CODE
Jurisdiction: This administrative hearing is conducted in accordance with Palm
Springs Municipal Code 2.50 which confers jurisdiction upon the Administrative Appeals
Board.
WHEREAS, REEFER MADNESS failed to provide to store their cannabis product
in a secured and locked safe room, safe, or vault;
WHEREAS, any person who operates a Cannabis Business and fails to store
their cannabis product in a secured and locked safe room, safe, or vault shall be liable
to the City an administrative fine in the amount of Five Thousand Dollars ($5,000.00);
and
WHEREAS, the City investigated and determined that the Cannabis Business,
REEFER MADNESS, 4693 Ramon Road, Palm Springs failed to store cannabis product
in a secured and locked safe room, safe, or vault; and
WHEREAS, Administrative Citation No. AB6003 was issued on July 21, 2022, for
Stored cannabis products not kept in a secured and locked safe room, safe, or vault and
Compliance with all applicable state and local laws; and
WHEREAS, Steven Wijatyk, on behalf of Reefer Madness, LLC filed an
administrative appeal of the Administrative Citation No. AB6003 for with the City Clerk
and paid the appeal fee; and
WHEREAS, the Administrative Appeals Board opened and conducted a duly
noticed Administrative Appeal Hearing on January 25, 2023 and
WHEREAS, the Administrative Appeals Board was presented prima facie
evidence that Reefer Madness violated Sections 5.55.205 (A)(2) and 5.55.110 of the
Palm Springs Municipal Code; and
WHEREAS, the Administrative Appeals Board has carefully reviewed and
considered all the evidence presented in connection with said appeal on January 25,
2023; and
THE ADMINISTRATIVE APPEALS BOARD HEREBY FINDS, after due
consideration given to the relevancy, weight and credibility of testimony and evidence,
Resolution ____
Page 2
and based upon a preponderance of the evidence in accordance with the Board’s
procedures, as follows:
SECTION 1.
The Appellant is in violation of Palm Springs Municipal Code 5.55.205 (A)(2) and
5.55.110. The Administrative Appeals Board upholds the administrative decision
the Administrative Citation and Fine of $5,000.00 to Reefer Madness, LLC, 4693
Ramon Road, Palm Springs.
The Appellant is not in violation of Palm Springs Municipal Code 5.55.205 (A)(2)
and 5.55.110. The Administrative Appeals Board overturns the administrative
Citation and the Administrative Fine of $5,000.00 to Reefer Madness, LLC, 4693
Ramon Road, Palm Springs.
SECTION 2. The Administrative Appeals Board directs the City Clerk to deliver a copy
of this Resolution to each party and to file a disposition report with the Palm Springs
City Council.
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS
ADMINISTRATIVE APPEALS BOARD THIS DAY OF 2023.
Michael Paonessa
Chair
ATTEST:
Brenda Pree
City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, Brenda Pree, Interim City Clerk of the City of Palm Springs, do hereby certify
that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a
meeting of the Administrative Appeals Board of the City of Palm Springs
on the day of , by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
BRENDA PREE, City Clerk
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
ATTACHMENT 6
ATTACHMENT 7