HomeMy WebLinkAbout1845 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.
read: SECTION 2. Section 3.35.080 is added to the Palm Springs Municipal Code to
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.
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.
read: SECTION 3. Section 3.35.090 is added to the Palm Springs Municipal Code to
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.
read: SECTION 4. Section 3.35.100 is added to the Palm Springs Municipal Code to
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 p
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 II 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. 1845
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
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
1. 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
Ordinance No. 1845
Page 15
or have
a e been convicted of a crime(s), the nature of such offense(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.
I. 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.
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 filed 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 and/or 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 "All 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.
& 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. 1845
Page 28
E. Video Recording and Retention Requirements
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: htti)://www.time.gov/timezone.cgi?Mountain/d/-7/iava.
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 concems 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.
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 Necessary. 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
Managers 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 Reouirements. 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 1/16 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 City Manager
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.
B. Applicants and Permittees Shall Cooperate with City Manager Em0ovees
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
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 retumed 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 warehouse/cultivation 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 2No DAY OF APRIL, 2014.
Y44 -
STEPHr.N P. POUGNET, WAYOR
7EST:
AMES THOMPSON, CITY CLERK
Ordinance No. 1845
Page 46
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 cop , 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 5th day of March, 2014, and readopted
at a regular meeting of the City Council held on the 2"d day of April, 2014, by the
following vote:
AYES: Councilmember Foat, Councilmember Lewin, Mayor Pro Tern Hutcheson,
and Mayor Pougnet.
NOES: Councilmember Mills.
ABSENT: None.
ABSTAIN: None.
MES THOMPSON, CITY CLERK
City of Palm Springs, Californi
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