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2000 Municipal Code - Medical Marijuana, Amendments to Title 17 of RHMC84,calciralh<if qlet4 ()A4 ACar GC./ TO: FROM: THRU: SUBJECT: INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 Agenda Item No.: 10-A Mtg. Date: 03/28/16 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL YOLANTA SCHWARTZ, PLANNING DIRECTOR NATALIE C. KARPELES, DEPUTY CITY ATTORNEY RAYMOND R. CRUZ, CITY MANAGER CONSIDERATION OF ORDINANCE NO. 347 OF THE CITY OF ROLLING HILLS AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 OF THE ROLLING HILLS MUNICIPAL CODE IN ORDER TO PERMIT THE PERSONAL CULTIVATION OF MEDICAL MARIJUANA AND IMPOSE AN EXPRESS BAN ON COMMERCIAL MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. DATE PUBLISHED: MARCH 3, 2016 ATTACHMENTS: DRAFT ORDINANCE NO. 347 CAPTAIN BERINGER'S OPINION 1. It is recommended that the City Council introduce the attached ordinance for second reading and adoption, or provide other direction to staff. 2. The City Council held a public hearing in the matter of amendment to the Municipal Code at their March 14, 2016 meeting regarding cultivation, dispensaries and distribution of medical marijuana within the City and directed staff to bring forth the ordinance for a second reading. The ordinance would permit cultivation of marijuana for personal medicinal use. only in a small area of the property (100 sq.ft. area per qualified patient and up to 500 sq.ft. for up to 5 qualified patients; either inside or outside), prohibit dispensaries and delivery, except delivery by a dispensary having a U fixed storefront, cultivation cannot be visible from the street, easement or established trail. At the March 14, 2016 meeting, the City Council also considered the Resolution adopted by the Planning Commission, which recommended adoption of an ordinance, which would prohibit all cultivation, commercial and non-commercial .(for personal use). That ordinance was recommended by the Planning Commission at a time when the matter was deemed to be urgent and an ordinance needed to be adopted by ,a certain date, if the City wished to control any type of marijuana activity within the City. The City Council chose to consider and held a public hearing on the more permissive ordinance. 3. Under federal law, the distribution of marijuana remains a federal offense. However, the federal government has traditionally relied on state and local authorities to address marijuana activities through strong state -based enforcement efforts. California is one of two dozen states that have legalized marijuana for medical use; yet the recreational use of marijuana is still unlawful in our state. In order to allow persons in need of medical marijuana to use it without fear of prosecution, California approved the Compassionate Use Act (CUA) in 1996. Similarly, in 2004, California approved the Medical Marijuana Program (MMP) to clarify the scope of the CUA and to provide limited protection under the law for the cultivation of marijuana for qualifying patients and primary caregivers. On October 9, 2015, Governor Brown signed three bills into law - Assembly Bills 266 and 243, and Senate Bill 643 - collectively referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA"). Prior to the passage of the MMRSA, State law provided no legal mechanism for commercial cultivation of marijuana for medicinal purposes and Federal law prohibited all cultivation of marijuana. Until the MMRSA was passed, cultivation of marijuana for medicinal purposes in California was restricted to individual qualified patients or their primary care givers for non-commercial purposes and limited to personal quantities. The MMRSA became effective on January 1, 2016 and contains provisions that govern the cultivating, processing, transporting, testing, and distributing of medical marijuana to qualified patients. 4. Title 17 of the Rolling Hills Municipal Code (the City's Zoning Ordinance) lists specifically permitted uses within the City. As medical marijuana dispensaries are not permitted by right or with a conditional use permit, they are prohibited. Because the Rolling Hills Municipal Code does not currently expressly and separately prohibit the cultivation of marijuana or the delivery of marijuana within the City, Title 17 has historically been applied to prohibit or preclude these types of activities. In order to ensure full local control over regulation of commercial cultivation of marijuana for medicinal purposes in the City is preserved, the MMRSA contains language that requires commercial cultivation and delivery services to be expressly prohibited by local ordinance, if the City wishes to do so. Currently the City's Ordinance specifically states: L• 17.16.020 Permitted and prohibited uses. A. Uses permitted in the RA -S zone as primary uses include: 1. Single-family residences; 2. Tree, bush or field crops provided there is no retail sale from the premises and provided the activity does not cause undue traffic not normally associated with residential use. B. The following uses are prohibited in the RA -S zone: 1. It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation a residential dwelling or a room in a dwelling for occupancy of less than thirty days. 2. It shall be unlawful for any person to occupy a residential dwelling or a room in a dwelling for less than thirty days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation. 5. Staff requested an opinion on the proposed Ordinance from Captain Beringer of the Lomita Sheriff Station, which is attached. It is his opinion that the proposed Ordinance is responsive to the law and will not create public nuisance for the City or its enforcement agencies. 6. Per Council direction, staff with the help of City Attorney's office, contacted several local cities to find out what ordinance relating to the marijuana issue they adopted. Staff found the following: PVE - adopted a total ban (cultivation, dispensaries and delivery) prior to the March 1, 2016 dead line that cities were threatened with. RHE - adopted a total ban on cultivation and dispensaries; and allows limited (similar to RH) delivery Torrance - adopted a total ban on cultivation and dispensaries; and allows limited (similar to RH) delivery RPV - City Council put the item on hold until after November*. Hermosa Beach - adopted a total ban (cultivation, dispensaries and delivery) prior to the March 1, 2016 dead line *There is a strong possibility that an initiative will reach the ballot in November 2016 that would legalize marijuana and hemp under state law. The initiative was also designed to establish state agencies to oversee the licensing and regulation of the marijuana industry. Other larger and more distant cities: West Hollywood - allows for personal and limited commercial cultivation City of Los Angeles, Riverside and San Diego - allow for limited personal cultivation -3- u We also found that many Central and Northern California cities, some with abundance of open space similar to Rolling Hills, (Bishop, Berkeley, Concord, Chico, Lodi) allow for personal cultivation with various restrictions, such as: - Limiting cultivation to a certain number of plants - Limiting cultivation to a certain number of square feet - Prohibiting outdoor cultivation - Allow only in enclosed, detached outdoor spaces - Prohibiting in rental units w/out owner consent - Prohibiting personal cultivation if someone under the age of 18 resides at the residence In addition, at the last meeting a question was raised if registration for medical marijuana cultivation with the City is necessary. The Assistant City Attorney responded to staff that the state law requires it. 7. The proposed Ordinance would: 1. Prohibit the commercial cultivation, delivery (by any mobile marijuana dispensary that does not have a fixed storefront and which operates solely as a mobile retail outlet which transports or delivers, or arranges the transportation or delivery of marijuana), and distribution of marijuana in all zones within the City by expressly listing them as a non -permitted uses 2. Add Chapter 17.29 to Title 17 ("Zoning") of the Rolling Hills Municipal Code to extensively regulate the delivery, cultivation and dispensing of marijuana within the City. Specifically, Chapter 17.29 will: (1) Prohibit mobile marijuana dispensaries from operating within the City; (2) Expressly prohibit deliveries of marijuana by mobile dispensaries without a fixed storefront, both within the City, as well as deliveries to and from the City; (3) Expressly prohibit the cultivation of marijuana for commercial purposes anywhere in the City, unless preempted by state or federal law; (4) Regard any violation of the ordinance to be a nuisance subject to summary abatement, and/ or administrative citation, among other enforcement remedies; and (5) Permit the cultivation of medical marijuana for personal use only when conducted in conformance with the following specific standards: (Pursuant to Chapter 3.5 of the California Business and Professions Code, commencing with section 19300 and California Health and Safety Code commencing with section 11362). (a) Only qualified patients and/ or primary caregivers may cultivate, and only pursuant to square footage parameters outlined by State law; (b) Only persons who reside on the parcel full-time may cultivate on that parcel; (c) Cultivation is only permitted on parcels with residential units; (d) The use of gas products to cultivate is prohibited; (e) The sale of medical marijuana is prohibited, notwithstanding the exceptions for compensation outlined in Health and Safety Code section 11362.765(c); (f) Cultivation activities cannot be visible from the street, easement or established trail (g) The cultivation of marijuana shall not create a public nuisance due to noise, dust, glare, odor, gases, vibrations, safety, etc. (h) The cultivation of marijuana shall be conducted in accordance with State and local laws related to land conversion, grading, electricity usage, water usage, agricultural discharge, etc. 3. Cultivation Registration. Prior to commencing any medical marijuana cultivation, any person would have to register for medical marijuana cultivation with the City. v THIS PAGE INTENTIONALLY LEFT BLANK ORDINANCE NO. 347 AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO PERMIT THE PERSONAL CULTIVATION OF MEDICAL MARIJUANA AND IMPOSE AN EXPRESS BAN ON COMMERCIAL MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. The City Council of the City of Rolling Hills does ordain as follows: Section 1. Commercial medical marijuana activities, including commercial cultivation, can adversely affect the health, safety and general welfare of the public. Section 2. Rolling Hills Municipal Code ("RHMC") Section 17.08.050 provides that uses not specifically permitted in the RHMC are prohibited. Section 17.16.020 provides'a list of permitted uses and prohibited uses. Commercial uses are not specifically permitted; therefore, they are prohibited. However, the City has determined that recent developments in State Law regarding the regulation of medical marijuana make it necessary to clarify that uses such as the commercial cultivation and dispensing of marijuana are expressly banned in the City of Rolling Hills. Section 3. The City Council does hereby find as follows: A. On October 9, 2015, Governor Brown signed three bills into law — Assembly Bills 266 and 243, and Senate Bill 643 — collectively referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA"). The MMRSA became effective on January 1, 2016 and contains provisions that govern the cultivating, processing, transporting, testing, and distributing of medical marijuana to qualified patients. B. Commercial medical marijuana activities can adversely affect the health, safety, and well-being of City residents. Further, as recognized by the Attorney General's August 2008 Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use, marijuana cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that surrounding homes or businesses may be negatively impacted by nuisance activity such as loitering or crime. C. The Rolling Hills Municipal Code (RHMC) does not currently expressly and separately prohibit the commercial cultivation of marijuana within the City, Title 17 has historically been applied to prohibit or preclude these types of activities. In order to ensure full local control over regulation of commercial cultivation of marijuana for medicinal purposes in the City is preserved, the MMRSA requires the City to adopt an ordinance expressly regulating cultivation and delivery, if the City wishes to do so. D. The Zoning Ordinance text amendments are consistent with the goals, policies, and objectives of the General Plan because the proposed ordinance is in the public interest and there are Ordinance No. 347 Medical Marijuana community benefits resulting from the regulation of medical marijuana. E. The Zoning Ordinance text amendments promote the health, safety, and welfare of Rolling Hills' residents and serve the goals and purposes of RHMC Title 17 by ensuring compliance with the Medical Marijuana Regulation and Safety Act. Section 4. The California Environmental Quality Act (CEQA) requires that the environmental impacts of the action be assessed. The proposed amendment will not in itself result in any environmental impacts nor will the amendment result in any changes in the physical conditions that exist in the City. Staff has determined the proposed ordinance to be Categorically Exempt from the California Environmental Quality Act (CEQA) Guidelines per § 15061 (b)(3). Section 5. Section 17.08.050 of the Rolling Hills Municipal Code is hereby amended to read as follows: 17.08.050 - Zoning compliance required. A. Except as provided in this title, no building shall be erected, reconstructed or structurally altered, nor shall any building or land be used for any purpose except as specifically provided for and allowed by this title. Any use or structure not specifically permitted by this title shall be prohibited. B. The commercial cultivation, dispensation, and mobile dispensing of marijuana are expressly prohibited in all zones of the City (per Section 17.16.020 B and Chapter 17.29). Accordingly, the City shall not issue any permit, license, or other entitlement for the commercial cultivation, dispensation, and mobile dispensing of marijuana. Section 6. Section 17.16.020(B) of the Rolling Hills Municipal Code is hereby amended by adding subparagraphs 3 and 4 to read as follows: 17.16.020 — Permitted and prohibited uses. B. The following uses are prohibited in the RA -S zone: 3. Dispensing of Cannabis and Cannabis delivery by any mobile marijuana dispensary (as that term is further defined in section 17.29.010) that does not have a fixed storefront and which operates solely as a mobile retail outlet which transports or delivers, or arranges the transportation or delivery, of Cannabis to a Person, including deliveries made via any technology platform owned and controlled by the mobile medical marijuana dispensary, or independently licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables persons, qualified patients, and/or primary caregivers to arrange for or facilitate the commercial transfer of medical marijuana or medical marijuana products, defined in Chapter 3.5 of the Health and Safety Code, as may be amended. 4. Commercial cannabis activities, including cultivation, possession, manufacture, possessing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical marijuana or medical marijuana products, except as set forth in Ordinance No. 347 2 Medical Marijuana Business and Professions Code section 19319, related to qualified patients and/or primary caregivers. Section 7. Title 17, Chapter 17.29, "Medical Marijuana Regulation" is hereby added to the Rolling Hills Municipal Code to read as follows: Title 17 Chapter 17.29 Medical Marijuana Regulations Sections: 17.29.010 Definitions. 17.29.020 Prohibition. 17.29.030 Cultivation Registration. 17.29.040 Exception. 17.29.050 Public Nuisance. Section 17.29.010 Definitions. As used in this chapter: Cannabis, or Marijuana, shall have the same definition as Health and Safety Code section 11018. Commercial Cannabis Activity means cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of Medical Cannabis or a Medical Cannabis product, except as set forth in Business and Professions Code Section 19319, related to Qualifying Patients and Primary Caregivers. Commercial cannabis activity does not include: (1) a qualified patient, who cultivates, possesses or stores cannabis exclusively for his or her personal medical use and who does not provide, donate, sell, or distribute cannabis to any other person; and (2) a primary caregiver who cultivates, stores, possesses, donates, or provides cannabis exclusively for the personal medical purposes of no more than five (5) specified qualified patients but who does not receive remuneration for these activities except for compensation in full compliance with Section 11362.765(c) of the Health and Safety Code. Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis. Delivery shall include the use by a Dispensary of any technology platform owned and controlled by the Dispensary, or independently licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables Persons, Qualified Patients, and/or Primary Caregivers to arrange for or facilitate the commercial transfer of Medical Cannabis or Medical Cannabis products. The term "Delivery" does not include the distribution of Cannabis from a Mobile Marijuana Dispensary. Dispensary means a facility where Medical Cannabis, Medical Cannabis products, or devices for the use of Medical Cannabis or Medical Cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that Delivers Medical Cannabis and Ordinance No. 347 3 Medical Marijuana Medical Cannabis products as part of a retail sale. Medical Cannabis means a product containing Cannabis, including but not limited to, concentrates and extractions, intended to be sold by Medical Cannabis patients in California pursuant to Health and Safety Code section 11362.5 and 11362.7. Medical Marijuana Regulation and Safety Act shall refer to Chapter 3.5 of the California Business and Professions Code, commencing with section 19300, et seq. Mobile Marijuana Dispensaries means any dispensary, cooperative, association, club, business, collective, operator, or provider that does not have a fixed storefront and which operates solely as a mobile retail outlet which transports or Delivers, or arranges the transportation of Delivery, of Medical Cannabis to a Person. Person means any individual, firm, corporation,, association, club, society, or other organization. The term Person shall include any owner, manager, proprietor, employee, volunteer, or salesperson. Primary Caregiver shall have the same definition as Health and Safety Code section 11362.7, as may be amended. Qualified Patient shall have the same definition as Health and Safety Code section 11362.7, as may be amended, and which means a Person who is entitled to the protections of Health and Safety Code section 11362.5. For the purposes of this Article, Qualified Patient shall include a Person with an identification card, as that term is defined by Health and Safety Code section 11362.7 et seq. Section 17.29.020 Prohibition. A. Commercial Cannabis Activities of all types are expressly prohibited in all zones within the City's jurisdictional limits. No Person shall establish, operate, conduct, or allow a Commercial Cannabis Activity anywhere within the City. B. Mobile Marijuana Dispensaries (as defined in Section 17.29.010) are prohibited in all zones within the City's jurisdictional limits. No Person shall: 1. Locate, operate, own, suffer, allow to be operated or abide, abet or assist in the operation of any Mobile Marijuana Dispensary within the City; 2. Deliver Marijuana 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; or 3. Deliver any Medical Cannabis product, including, but not limited to tinctures, baked goods, or other consumable products, 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. C. Cultivation of medical marijuana is expressly prohibited in all areas of the City except as outlined below: Ordinance No. 347 4 Medical Marijuana 1. Medical marijuana for personal use may be cultivated in conformance with the following standards: a. By a qualified patient, cultivating marijuana pursuant to Section 11362.5 of the Health and Safety Code, if the area he or she uses to cultivate marijuana does not exceed 100 square feet and he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. b. By a primary caregiver, cultivating marijuana pursuant to Section 11362.5 of the Health and Safety Code, if the area he or she uses to cultivate marijuana does not exceed 500 square feet and he or she cultivates marijuana exclusively for the personal medical use of no more than five (5) specified qualified patients for whom he or she is the primary caregiver and does not receive remuneration for these activities, except for compensation provided in full compliance with Health and Safety Code section 11362.765(c). c. A qualified patient may cultivate medical marijuana on the parcel where the qualified patient resides fulltime, and shall not participate in medical marijuana cultivation in any other location within the City. d. A primary caregiver may cultivate medical marijuana on the parcel where the primary caregiver resides fulltime, and shall not participate in medical marijuana cultivation in any other location within the City. e. Medical marijuana cultivation is permitted only on parcels developed with residential units. f. The use of gas products (including, without limitation, CO2, butane, propane, and natural gas) for indoor medical marijuana cultivation or processing is prohibited. g. Medical marijuana for sale is prohibited. Notwithstanding this section, a primary caregiver may recover from his or her qualified patient compensation provided in full compliance with Health and Safety Code section 11362.765(c). h. There shall be no exterior evidence of medical marijuana cultivation from any street, easement or designated trail. i. Any medical marijuana cultivated within a residence shall not create humidity, mold, or other nuisance conditions. j. The medical marijuana cultivation area shall not adversely affect the health or safety of the nearby residents by creating dust, glare, excessive light, noise, noxious gases, odor, smoke, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, products, processes, or wastes. k. The cultivation of medical marijuana shall be in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. 2. Processing marijuana for commercial sale is prohibited in all areas of the City. Section 17.29.030 Cultivation Registration. Prior to commencing any medical marijuana cultivation, the person(s) owning, leasing, renting, occupying, or having charge or possession of any Ordinance No. 347 Medical Marijuana legal parcel or premises where medical marijuana cultivation is proposed to occur must register for medical marijuana cultivation with the City. The following information will be required with the initial registration application and subsequent registration extensions: A. Notarized signature from the owner of the property consenting to the cultivation of marijuana at the premises on a form acceptable to the City. B. The name of each person owning, leasing, occupying, or having charge of any legal parcel or premises where medical marijuana will be cultivated. C. A copy of a current, valid identification card, as that term is defined by Health and Safety Code section 11362.7 et seq., and the name and of each qualified patient or primary caregiver who participates in the medical marijuana cultivation. D. The physical site address where the marijuana will be cultivated. E. A signed consent form, acceptable to the City, authorizing City Staff, including the Sheriff's Department, the authority to conduct an inspection of the site used for the cultivation of marijuana, upon twenty-four (24) hours' notice. F. The initial registration shall be valid for no more than two (2) years and may be extended in increments of two (2) years. G. The City Manager, or his or her designee, may, in his or her discretion, deny any application for a medical marijuana cultivation registration, or extension thereof, where he or she finds, based on articulated facts, that the issuance of such registration, or extension thereof, would be detrimental to the public health, safety or welfare. The City Manager shall deny an application for medical marijuana cultivation registration or extension thereof that does not demonstrate satisfaction of the minimum requirements of this chapter. The denial of any registration 'application or extension shall be subject to appeal by the Rolling Hills City Council. H. The City Council may establish a fee or fees required to be paid upon filing of an application for registration as provided by this chapter, which fees shall not exceed the reasonable cost of administering this chapter. Section 17.29.040 Exception. The Delivery of medical cannabis to qualified patients with valid identification cards or a verifiable written recommendation from a physician for medical cannabis, and primary caregivers with a valid identification card outside the premises of the medical cannabis dispensary, is permitted from a Dispensary with a fixed location operating outside of the City or a primary caregiver cultivating within the boundaries of the City. This exception does not include Deliveries made by Mobile Marijuana Dispensaries, as the term is defined in Section 17.29.010. Section 17.29.050 Public Nuisance. Any use or condition caused, or permitted to exist, in violation of any provision of this Article shall be, and hereby is declared to be, a public nuisance and may be summarily abated by the City pursuant to Code of Civil Procedure section 731 or any other remedy available to the City. Section 8. If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences or clauses or phrases be declared invalid or unconstitutional. Section 9. This Ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines (the Ordinance No. 347 6 @ Medical Marijuana Guidelines), and the environmental regulations of the City. The City Council hereby finds that under Section 1.5061(b)(3) of the State CEQA Guidelines, this Ordinance is exempt from the requirements of CEQA because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment. Section 10. The ordinance shall take effect thirty days after the date of its passage. Section 11. The City Clerk shall certify to the passage of this ordinance and shall cause the same to be published as required by law. PASSED, APPROVED AND ADOPTED this day of , 2016. Mayor ATTEST: Heidi Luce, City Clerk Ordinance No. 347 7 Medical Marijuana STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ROLLING HILLS ) §§ I certify that the foregoing Ordinance No. entitled: AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO PERMIT THE PERSONAL CULTIVATION OF MEDICAL MARIJUANA AND IMPOSE AN EXPRESS BAN ON COMMERCIAL MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. Was approved and adopted at a regular meeting of the City Council on , 2016 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: and in compliance with the laws of California was posted at the following: Administrative Offices. HEIDI LUCE, CITY CLERK Ordinance No. 347 8 Medical Marijuana Tuesday, March 22, 2016 11:51 AM Subject: [GRAYMAIL] RE: Marijuana Ordinance Date: Tuesday, March 22, 2016 10:08 AM From: Daniel Beringer <DPBering@lasd.org> To: "Raymond R. Cruz" <rcruz@cityofrh.net> Cc: "hluce@cityofrh.net" <hluce@cityofrh.net> Upon reviewing the newly proposed ordinance, I believe that it will meet the needs of preserving the quality of life in the city, while allowing for those who have a proven medical need to cultivate in small quantities. It also falls in line with the intent of the Medical Marijuana Regulation and Safety Act. The maximum cultivation areas of 10 0 and 500 square feet are sufficiently small as to not unfairly impinge upon the rights of the neighboring properties, given the distance between most homes in the city. I would not agree to personal cultivation in more densely populated urban communities, but Rolling Hills is unique. Due to limited access to the city from those without a lawful purpose, I would not suspect that theft of the plants would be a serious issue, due to the widespread availability of marijuana as a whole. While there may always be individuals who try to take advantage of the permitted cultivation, the issues can be abated as a public nuisance. Furthermore, I agree with the provision "There shall be no exterior evidence of medical marijuana cultivation from any street." Could that be broadened to include, "any public right of way?" While the cultivation may not be visible from the street, it could possibly be visible from trails. Captain Dan Beringer Lomita Station PH - (310) 891-3223 FAX - (323) 415-1991 015 MAR 22 2016 City of Rolling Hills By.. Rolling Hills, CA - Official Website - Pending Ordin 3/25/16, 3:24 PM hl . Ca A * My Favorites - Pages Modules - +( Live Edit - 0- Ewa- Help - THE CITY OF ROLLING HILLS CALIFORNIA 1. ,1•I ..s l: ► ( ; R M:N.. 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To sign up for email notification of upcoming Pending Ordinances please click the following link Noti Me Proposed Amendments to Title 17 of the Rolling Hills Municipal Code pertaining to Medical Marijuana The Following is information pertaining to proposed amendments to expressly ban cultivation, delivery and dispensation for commercial purposes of medical marijuana in the City. • 03-28-16 City Council meeting agenda and agenda item 1QA staff report. • 03-14-16 City Council meeting agenda and agenda item ¢A staff report • 03-03-16 Public Hearing Notice • 02-08-16 City Council meeting agenda NOTE: The public hearing on this matter is not on the agenda. The public hearing was rescheduled to March 14, 2016 at 7:00 PM. • 01-28-16 public Hearing Notice • Planning Commission Resolution No. 2016-01 • 01-19-16 Planning Commission meeting a9e0.(a and agenda item 8C Staff report, including proposed Resolution No. 2016-01 • 01-07-16 Public Hearing Notice City of Roiling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 Ph, (310) 377.1521 Fax (310) 377-7288. 7:30 am - 5:00 pm Mon -Fri ) Home 1 Email Page 1 Print Page 1 RSS 1 Accessibility 1 Copyright Notices http://rolling-hills.org/index.aspx7nid=140 Page 1 of 1 Engage your community - connect to news, events and information you care about. View more information... Sign In 11010E ROLLING HILLS CALIFORNIA R®LLI 0 HEIM CM atgOtICak Search our site City Council City Council Agendas Committee on Trees & Views Agendas Planning Commission Agendas Traffic Commission Agendas NOTIFY ME EMERGENCY NOTIFICATION CONTACT US You are here: Home > Notify Me Notify Me Available Lists L4� 1. 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I am the chief legal advertisng clerk of the publisher of the PALOS VERDES PENINSULA NEWS a newspaper of general circulation, printed and published weekly in the City of Rolling Hills Estate County of Los Angeles, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of County of Los Angeles, State of California, under the date of February 15, 1977 Case Number C824957, that the notice of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: March 03, all in the year 2016 I certify (or declare) under penalty of perjury that the foreg' Dated at Signature Rolling Hills Estates, California this 03rd of March, 2016 ft f..ECE MAR 0 7 2016 City of Rolling Hills By This space is for the County Clerk's Filing Stamp P.V.P. News No. 12512 NOTICE OF A PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA NOTICE IS HEREBY GIVEN, that the City Council of the. City of Rolling Hills will hold a Public Hearing at 7:00 PM on Monday, March 14, 2016 in the Council Chambers of City Hall, 2 Portuguese Bend Road, Rolling Hills, CA for !the purpose of receiving public input regarding the fol- lowing Municipal Code amendment: AN ORDINANOE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY, IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. AND AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO PERMIT THE PERSONAL CULTIVATION OF MEDICAL MARIJUANA AND IMPOSE AN EXPRESS BAN ON COMMERCIAL MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. It has been determined that the project would not have a significant effect on the environment pursuant to the California Environmental Quality Act (CEQA). Governor Brown signed the State of California Medical Marijuana Regulations and Safety Act (MMRSA) into law and it becomes effective March 1, 2016. Pursuant to the MMRSA if a city or county has not adopted land use regulations by March 1, 2016 to either regulate or ban medical marijuana cultivating, processing, testing or dis- pensing activities, the State will be the sole authority to regulate and issue licenses in that jurisdiction. APPLICATIONS REQUIRED BY MUNICIPAL CODE:, Chapter 17.50 — Ordinance Amendment. Any person is welcome to review the subject project and staff report prior to the public hearing at the ity Hall Administration Building located at 2 Portuguese Bend Road, Rolling Hills, CA. We welcome your input. You may provide your comments in writing to the City Council prior to the meeting or come to the meeting and address the City Council on this project. If you challenge the approval or denial of this permit application in court, you may be limited to raising •only those issues you or someone else raised at the public hearing described in this notice, or in written correspon- dence delivered to the Planning Commission at, or prior to, the public hearing. Published in the Palos Verdes Peninsula News on March 3, 2016. Tuesday, March 22, 2016 11:51 AM Subject: [GRAYMAIL] RE: Marijuana Ordinance Date: Tuesday, March 22, 2016 10:08 AM From: Daniel Beringer <DPBering@lasd.org> To: "Raymond R. Cruz" <rcruz@cityofrh.net> Cc: "hluce@cityofrh.net" <hluce@cityofrh.net> Upon reviewing the newly proposed ordinance, I believe that it will meet the needs of preserving the quality of life in the city, while allowing for those who have a proven medical need to cultivate in small quantities. It also falls in line with the intent of the Medical Marijuana Regulation and Safety Act. The maximum cultivation areas of 10 0 and 500 square feet are sufficiently small as to not unfairly impinge upon the rights of the neighboring properties, given the distance between most homes in the city. I would not agree to personal cultivation in more densely populated urban communities, but Rolling Hills is unique. Due to limited access to the city from those without a lawful purpose, I would not suspect that theft of the plants would be a serious issue, due to the widespread availability of marijuana as a whole. While there may always be individuals who try to take advantage of the permitted cultivation, the issues can be abated as a public nuisance. Furthermore, I agree with the provision "There shall be no exterior evidence of medical marijuana cultivation from any street." Could that be broadened to include, "any public right of way?" While the cultivation may not be visible from the street, it could possibly be visible from trails. Captain Dan Beringer Lomita Station PH - (310) 891-3223 FAX - (323) 415-1991 ECEIVED MAR 22 2016 City of Rolling Hills By CITY OF ROLLING HILLS PROOF OF SERVICE BY MAIL AND POSTING STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES I am a citizen of the United States. I am over the age-of_eighteen years_and_not_a_party_to_the _._. within proceeding; my business address is 2 Portuguese Bend Road, Rolling Hills, California. On the 3rd day of March, 2016, I serve the within City Council - Notice of Public Hearing ZC No. 899 — Medical Marijuana a copy of which is annexed hereto and made a part hereof, on the person, or persons, named below by placing a true copy thereof enclosed in a sealed envelope with postage thereon fully prepaid, in the United States mail at Rolling Hills, California addressed as follows: PUBLISHED MAILED DELIVERED PV News None None. Also posted at City Hall and at www.Rolling-Hills.org I declare under penalty of perjury, that the foregoing is true and correct. Executed on the 3`d day of March, 2016 at Rolling Hills, California. EWA NIKODEM ADMINISTRATIVE ASSISTANT • Re 1/109 gice4 INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310)377-1521 FAX (310) 377-7288 NOTICE OF A PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA NOTICE IS HEREBY GIVEN, that the City Council of the City of Rolling Hills will hold a Public Hearing at 7:00 PM on Monday, March 14, 2016 in the Council Chambers of City Hall, 2 Portuguese Bend Road, Rolling Hills, CA for the purpose of receiving public input regarding the following Municipal Code amendment: AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER .17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY, IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. AND AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO PERMIT THE PERSONAL CULTIVATION OF MEDICAL MARIJUANA AND IMPOSE AN EXPRESS BAN ON COMMERCIAL MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. It has been determined that the project would not have a significant effect on the environment pursuant to the California Environmental Quality Act (CEQA). Governor Brown signed the State of California Medical Marijuana Regulations and Safety Act (MMRSA) into law and it becomes effective March 1, 2016. Pursuant to the MMRSA if a city or county has not adopted land use regulations by March 1, 2016 to either regulate or ban medical marijuana cultivating, processing, testing or dispensing activities, the State will be the sole authority to regulate and issue licenses in that jurisdiction. APPLICATIONS REQUIRED BY MUNICIPAL CODE: Chapter 17.50 - Ordinance Amendment. Any person is welcome to review the subject project and staff report prior to the public hearing at the City Hall Administration Building located at 2 Portuguese Bend Road, Rolling Hills, CA. We welcome your input. You may provide your comments in writing to the City Council prior to the meeting or come to the meeting and address the City Council on this project. If you challenge the approval or denial of this permit application in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. Published in Palos Verdes Peninsula News on March 3, 2016. opeo//in flewdetter offfice: (310) 377-1521 . fax: (310) 377-7288 www.Rolling-Hills.org CITY COUNCIL James Black, M.D. Bea Dieringer Leah Mirsch Jeff Pieper Patrick Wilson CITY MANAGER Raymond R. Cruz February 17, 2016 Issue No. 16-04 New Start Time for City Council Meetings beginning March 14th Beginning on March 14, 2016, the City Council meetings will begin at 7:00 p.m., instead of 7:30 p.m. Along with the change in start time, the "Open Agenda" portion of the meeting will be moved to the first item on the agenda. "Open Agenda" is the portion of the meeting where the public may address the City Council regarding any matter that is not on the printed agenda. Both of these changes were made in an affort to facilitate public engagement. Spring Clean-up Dates Set for Two Saturdays — April 9th and April 16th 6., ,,,4��1 Again this year, the Spring Clean-up will offer an opportunity to dispose of bulky items as well as unlimited greenwaste. The greenwaste pick-up will be Saturday, April 9 and the bulky item pick-up will be Saturday, April 16. Place items to be picked up along the roadside no more than 24 hours in advance of pickup. All greenwaste must be bagged, bundled or in a container and weigh no more than 60 lbs. Bundles should not exceed 2ft. in diameter and 4 ft. in length. For removal of large items such as refrigerators, please call Republic Services Customer Service to make special pickup arrangements. For questions, please call Republic Services at 800-299-4898. Community Shred Day April 30th . f Republic Services will be holding a drive- thru Community Shred Day for residents of Rolling Hills on Saturday, April 30th. The 4 event will take place from 10am until 1pm in the parking area in front of the RHCA building. REMINDER: Please don't litter As residents and visitors, we are very fortunate to enjoy such a beautiful community. Not only for aesthetic purpose, but to prevent storm water pollution, it is very important to help keep the canyons, trails and roadway easements litter free. Please be conscious not to litter and if you happen upon any litter, please pick it up so that it doesn't make its way to a canyon or waterway. A little extra effort helps the Community and the environment. Household Hazardous Waste and e -Waste Roundup in RPV The Palos Verdes Peninsula's next Annual Household Waste/Electronic Waste Roundup is Saturday, May 14, 2016 from 9:00 am to 3:00 pm at Rancho Palos Verdes Civic Center, 30940 Hawthorne Blvd., Rancho Palos Verdes. For more information visit the LA County Sanitation District web site at www.lacsd.org. ROLLING HILLS CRIMES REPORTED For the time period January 24 -February 6, 2016 No crimes reported. City Council Public Hearing: Zoning Code Amendment to regulate medical marijuana cultivation and dispensaries. On Monday, March 14, 2016 at 7:00 p.m., during its regular meeting, the Rolling Hills City Council will hold a public hearing regarding a Zoning Code Amendment to regulate medical marijuana cultivation and dispensaries within the City. Recently enacted State legislation provides the City with greater authority for regulating medical marijuana activities. Traffic Safety & Parking Reminders Pedestrians should walk single -file, facing traffic, off of the roadway or as close to edge of the roadway as possible; and when walking at . night, wear light- colored/reflective clothing. Drivers are also reminded to use additional caution during times in the morning and late afternoon when the sun is low in the sky; and to use windshield visors and sunglasses when driving into the sun. Also, there is no overnight parking allowed along any roadways or in cul-de-sacs. When parking along the roadway, please be sure that the vehicle does not block equestrian trails, fire hydrants or driveways and that the vehicle is completely off of the roadway so as not to impede traffic. RHCA ANNOUNCEMENTS RHCA Change to Resident Entry As of March 30th, all resident vehicles will need to have a headlamp transponder to enter through the resident lane. The RHCA will no longer be using License Plate Recognition to identify resident vehicles. If you do not have a transponder, please bring your vehicle to the RHCA office so RHCA staff can place one on your vehicle. The transponder is a small sticker that affixes to the headlamp of the vehicle. The RHCA office is open Monday - Thursday 7:30 a.m. - 4:45 p.m. and Fridays 7:30 a.m. - 12 noon. The office will also be open on a Saturday in March to accommodate residents who cannot come in during regular business hours. A notice will be sent to residents once that date is selected. If you have any questions, please contact the RHCA office at 310- 544-6222 or at info@ncca.net License Agreement Requests The RHCA advises the following regarding requests for license agreements to use easements. APPROVED: 15 Portuguese Bend Road for retaining wall in side easement; 17 Middleridge Lane North for BBQ and trellis is south easement; 11 Saddleback Road for lot line adjustment and vacation of easement. PENDING: 86 Crest Road East for landscaping in side easement. DENIED: None. UPCOMING CITY MEETINGS City Council Meetings 02/22/16 at 7:30 p.m. and 03/14/16 at 7:00 p.m. Planning Commission Meeting 3/15/16 at 6:30 p.m. Traffic Commission Meeting 03/24/16 at 8:30 a.m. AGENDA CITY COUNCIL CITY OF ROLLING HILLS REGULAR MEETING MONDAY, FEBRUARY 22, 2016 7:30 P.M. THIS AGENDA MAY NOT BE COMPLETE. THE FINAL AGENDA WILL BE POSTED AT CITY HALL 72 HOURS BEFORE THE CITY COUNCIL MEETING. THE FINAL AGENDA IS ALSO POSTED ON THE CITY OF ROLLING HILLS WEBSITE AT WWW.ROLLING-HILLS.ORG. 1. CALL TO ORDER 2. ROLL CALL 3. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. Minutes - Regular Meeting of February 8, 2016. RECOMMENDATION: Approve as presented. B. Payment of Bills. RECOMMENDATION: Approve as presented. C. Financial Statement for the Month of January, 2016. RECOMMENDATION: Approve as presented. D. Allied Recycling Tonnage Report for December, 2015 and January, 2016. RECOMMENDATION: Receive and file. 4. COMMISSION ITEMS NONE. 5. PUBLIC HEARINGS A. AT THE REQUEST OF THE PARTIES, THE PUBLIC HEARING ON THE APPEALS OF COMMITTEE ON TREES AND VIEWS RESOLUTION NO. 2015-03-CTV WILL BE CONTINUED TO A DATE TO BE SELECTED AT THIS MEETING. CONSIDERATION OF TWO APPEALS OF COMMITTEE ON TREES AND VIEWS RESOLUTION NO. 2015-03-CTV SETTING FORTH FINDINGS RELATING TO TRIMMING OF 'TREES AT 15 PORTUGUESE BEND ROAD DUE TO VIEW IMPAIRMENT FROM 18 PORTUGUESE BEND ROAD. 6. OLD BUSINESS A. CONSIDERATION OF RESOLUTION NO. 1182 ADOPTING ADMINISTRATIVE REGULATIONS INTERPRETING MEASURE B RELATING TO VIEW PRESERVATION. 7. NEW BUSINESS NONE. 8. • OPEN AGENDA - APPROXIMATELY 8:00 P.M. - PUBLIC COMMENT WELCOME 9. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS A. CONSIDERATION OF A REQUEST FROM THE LOS ANGELES COUNTY SOLID WASTE MANAGEMENT COMMITTEE/INTEGRATED WASTE MANAGEMENT TASK FORCE FOR A LETTER OF SUPPORT FOR A LOS ANGELES COUNTY PHARMECEUTICALS AND SHARPS COLLECTION AND DISPOSAL STEWARDSHIP ORDINANCE. B. UPDATE ON THE PALOS VERDES PENINSULA REGIONAL LAW ENFORCEMENT COMMITTEE MEETING HELD ON FEBRURY 11, 2016. (ORAL REPORT) 10. MATTERS FROM STAFF A. REPORT REGARDING PROCESS FOR REVIEWING DEVELOPMENT PROJECTS ELIGIBLE FOR ADMINISTRATIVE (OVER -THE COUNTER) APPROVAL. 11. CLOSED SESSION NONE. 12. ADJOURNMENT Documents pertaining to each agenda item are available for review in the City Clerk's office on after 2pm on the Friday before the meeting or at the meeting at which the item will be considered. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the Deputy City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. t7L?O6 vizi 1/ve) 'W1' "WV rod pvacl aGan�n�/�o�/ `Pff G'uwodf0O('Pe) RESOLUTION NO. 2016-01 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS RECOMMENDING THAT THE CITY COUNCIL AMEND TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMNET NO. 2016-01. THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1. Rolling Hills Municipal Code ("RHMC") Section 17.08.050 provides that uses not specifically permitted in the RHMC are prohibited. Section 17.16.020 provides a list of permitted uses and prohibited uses. Commercial uses are not specifically permitted; therefore, they are prohibited. However, the City has determined that recent developments in State Law regarding the regulation of medical marijuana make it necessary to clarify that uses such as the cultivation and dispensation of marijuana are expressly banned in the City of Rolling Hills. Section 2. The proposed ordinance has been reviewed in accordance with the California Environmental Quality Act, and it has been determined that the proposed ordinance would not have a significant effect on the environment. Section 3. Chapter 17.50 of the RHMC sets forth procedures for amending the Zoning Ordinance. A public hearing before the Planning Commission is necessary before a recommendation for a Zoning Code amendment can be made to the City Council. On January 19, 2016 the Planning Commission held a duly noticed public hearing and accepted public testimony. Section 4. The Planning Commission considered the information provided by City staff, public testimony, and other evidence regarding the proposed ordinance. This Resolution, and its findings, are based upon the evidence presented to the Commission at its January 19, 2016 hearing, including, without limitation, the staff report submitted and finds that the proposed Zoning Ordinance amendments comply with the requirements of the City of Rolling Hills General Plan, Rolling Hills Municipal Code and State Planning and Zoning Laws (Government section 65000 et seq.). Section 5. The Planning Commission does hereby find and declare as follows: A. On October 9, 2015, Governor Brown signed three bills into law — Assembly Bills 266 and 243, and Senate Bill 643 — collectively referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA"). The MMRSA became effective on January 1, 2016 and contains provisions that govern the cultivating, processing, transporting, testing, and distributing of medical marijuana to qualified patients. B. The MMRSA states that if a city or county has not adopted land use regulations by March 1, 2016, to either regulate or ban cultivation of marijuana for medicinal Resolution No. 2016-01 1 purposes, the State will be the sole authority that issues cultivation licenses in that jurisdiction, meaning no local license will be required. C. Commercial medical marijuana activities, as well as cultivation for personal medical use as allowed by the Compassionate Use Act and the Medical Marijuana Program, can adversely affect the health, safety, and well-being of City residents. Further, as recognized by the Attorney General's August 2008 Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use, marijuana cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that surrounding homes or businesses may be negatively impacted by nuisance activity such as loitering or crime. D. The Rolling Hills Municipal Code (RHMC) does not currently expressly and separately prohibit the cultivation of marijuana within the City, Title 17 has historically been applied to prohibit or preclude these types of activities. In order to ensure full local control over regulation of commercial cultivation of marijuana for medicinal purposes in the City is preserved, the MMRSA requires the City to adopt an ordinance expressly regulating commercial cultivation by March 1, 2016 to ensure the State is not the sole regulator of cultivation activities. Additionally, the MMRSA also contains language that requires delivery services to be expressly prohibited by local ordinance, if the City wishes to do so. E. The Zoning Ordinance text amendments are consistent with the goals, policies, and objectives of the General Plan because the proposed ordinance is in the public interest and there are community benefits resulting from the regulation of medical marijuana. F. The Zoning Ordinance text amendments promote the health, safety, and welfare of Rolling Hills' residents and serve the goals and purposes of RHMC Title 17 by ensuring compliance with the Medical Marijuana Regulation and Safety Act. G. The California Environmental Quality Act (CEQA) requires that the environmental impacts of the action be assessed. The proposed amendment will not in itself result in any environmental impacts nor will the amendment result in any changes in the physical conditions that exist in the City. Staff has determined the proposed ordinance to be Categorically Exempt from the California Environmental Quality Act (CEQA) Guidelines per § 15061 (b)(3). Section 6. The Planning Commission recommends that the City Council adopt the Zoning Ordinance text amendments as set forth in attached Attachment A, which is incorporated by reference. Section 7. Each and every one of the findings and determinations in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects and are fully and completely supported by substantial evidence in the record as a whole. Resolution No. 2016-01 2 Section 8. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact. Section 9. This Resolution will remain effective until superseded by a subsequent resolution. PASSED, APPROVED AND ADOPTED THIS 19th DAY OF CHEL CHAIRMAN ATTEST: 41(edlAtb HEIDI LUCE CITY CLERK Resolution No. 2016-01 3 STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ROLLING HILLS ) §§ ) I certify that the foregoing Resolution No. 2016-01 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS RECOMMENDING THAT THE CITY COUNCIL AMEND TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMNET NO. 2016-01. was approved and adopted at a regular meeting of the Planning Commission on January 19th, 2016 by the following roll call vote: AYES: Commissioners Cardenas, Gray, Kirkpatrick, Smith and Chairman Chelf. NOES: None. ABSENT: None. ABSTAIN: None. and in compliance with the laws of California was posted at the following: Administrative Offices. 4046 HEIDI LUCE CITY CLERK Resolution No. 2016-01 4 ATTACHMENT A Amend Title 17 (ZONING) as follows: 1. Section 17.08.050 of the Rolling Hills Municipal Code is hereby amended to read as follows: A. Except as provided in this title, no building shall be erected, reconstructed or structurally altered, nor shall any building or land be used for any purpose except as specifically provided for and allowed by this title. Any use or structure not specifically permitted by this title shall be prohibited. The cultivation dispensation and mobile dispensing of marFuana are express y, .rohibited in all zones of the City (ner Section 17.16.020 B and Chapter 17.2 • Accordingly, the City shall not issue any permit, license, or other entitlement for the cultivation, dispensation, and mobile dispensing of marijuana. 2. Section 17.16.020 B of the Rolling Hills Municipal Code is hereby amended by adding subparagraph 3, 4, and 5 and shall read as follows: 17.16.020 - Permitted and prohibited uses. B. The following uses are prohibited in the RA -S zone: 1. It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation a residential dwelling or a room in a dwelling for occupancy of less than thirty days. 2. It shall be unlawful for any person to occupy a residential dwelling or a room in a dwelling for less than thirty days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation. 3. Dispensing of Cannabis and Cannabis delivery by any mobile marijuana dispensary (as that term is further defined in section 17.59.0 0 that does not have a fixed storefront and which operates solely as a mobile retail outlet which transports or delivers, or arranges the transportation or delive •o Cannabis to a Person, including deliveries made via any technology platform owned and controlled by the mobile medical marijuana dispensary. or inde endentl licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables pm -sons, qualified patients, and/or primary caregivers to arrange for or facilitate the commercial transfer of medical marijuana or medical marijuana products, defined in Chapter 3.5 of the Health and Safety Code, as may be amended. 4. Commercial cannabis activities, includi g cultivation, possession, manufacture, possessing, storing, laboratory testing, labeling, transporting, distr.bution or sale of medical marijuana or medical marijuana products, except as set forth in Business and Professions Code section 19319, related to qualified patients and/or primary caregivers. Resolution No. 2016-01 5 5. Cultivation of cannabis or medical marijuanaincluding the nlantinO rowin harvesting, drying, curing, grading, or trimming of marijuana or cannabis, defined in Chapter 3.5 of the Health and Safety Code, as may be amended. 3. Title 17, Chapter 17.29, "Medical Marijuana Regulation" is hereby added to the Rolling Hills Municipal Code to read as follows: Tile 17 Chapter 17.29 Medical Marijuana Regulation Sections: 17.29.010 Definitions 17.29.020 Prohibition 17.29.030 Exception 17.29.040 Public Nuisance Sec. 17.29.010 Definitions. As used in this chapter: Cannabis, or Marijuana, shall have the same definition as Health and Safety Code section 11018. Commercial Cannabis Activity means cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of Medical Cannabis or a Medical Cannabis product, except as set forth in Business and Professions Code Section 19319, related to Qualifying Patients and Primary Caregivers. Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis. Delivery .shall include the use by a Dispensary of any technology platform owned and controlled by the Dispensary, or independently licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables Persons, Qualified Patients, and/or Primary Caregivers to arrange for or facilitate the commercial transfer of Medical Cannabis or Medical Cannabis products. The term "Delivery" does not include the distribution of Cannabis from a Mobile Marijuana Dispensary. Dispensary means a facility where Medical Cannabis, Medical Cannabis products, or devices for the use of Medical Cannabis or Medical Cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that Delivers Medical Cannabis and Medical Cannabis products as part of a retail sale. Medical Cannabis means a product containing Cannabis, including but not limited to, concentrates and extractions, intended to be sold by Medical Cannabis patients in California pursuant to Health and Safety Code section 11362.5 and 11362.7. Resolution No. 2016-01 6 Medical Marijuana Regulation and Safety Act shall refer to Chapter 3.5 of the California Business and Professions Code, commencing with section 19300, et seq. Mobile Marijuana Dispensaries means any dispensary, cooperative, association, club, business, collective, operator, or provider that does not have a fixed storefront and which operates solely as a mobile retail outlet which transports or Delivers, or arranges the transportation of Delivery, of Medical Cannabis to a Person. Person means any individual, firm, corporation, association, club, society, or other organization. The term Person shall include any owner, manager, proprietor, employee, volunteer, or salesperson. Primary Caregiver shall have the same definition as Health and Safety Code section 11362.7, as may be amended. Qualified Patient shall have the same definition as Health and Safety Code section 3362.7, as may be amended, and which means a Person who is entitled to the protections of Health and Safety Code section 11362.5. For the purposes of this Article, Qualified Patient shall include a Person with an identification card, as that term is defined by Health and Safety Code section 11362.7 et seq. Sec. 17.29.020 Prohibition. A. Commercial Cannabis Activities of all types are expressly prohibited in all zones within the City's jurisdictional limits. No Person shall establish, operate, conduct, or allow a Commercial Cannabis Activity anywhere within the City. B. Mobile Marijuana Dispensaries are prohibited in all zones within the City's jurisdictional limits. No Person shall: 1. Locate, operate, own, suffer, allow to be operated or abide, abet or assist in the operation of any Mobile Marijuana Dispensary within the City; 2. Deliver Marijuana 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; or 3. Deliver any Medical Cannabis product, including, but not limited to tinctures, baked goods, or other consumable products, 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. C. Marijuana cultivation by any person or entity, including clinics, collectives, cooperatives and dispensaries, is prohibited in all zones within the City's jurisdictional limits. No permit, whether conditional or otherwise, shall be issued for the establishment of such activity. No Person, including a Qualified Patient or Primary Caregiver, shall Cultivate any amount of Cannabis in the City, even for medicinal purposes, except where the City is preempted by federal or state law from enacting a prohibition on such activity. Sec. 17.29.030 Exception. The Delivery of medical cannabis to qualified patients with valid identification cards or a verifiable written recommendation from a physician for medical cannabis, and primary caregivers with a valid identification card outside the premises of the medical cannabis Resolution No. 2016-01 7 .` dispensary, is permitted from a Dispensary with a fixed location operating outside of the City. This exception does not include Deliveries made by Mobile Marijuana Dispensaries. Sec. 17.29.040 Public Nuisance. Any use or condition caused, or permitted to exist, in violation of any provision of this Article shall be, and hereby is declared to be, a public nuisance and may be summarily abated by the City pursuant to Code of Civil Procedure section 731 or any other remedy available to the City. Resolution No. 2016-01 8 C 0/l o/tin yy Jti/i r/ewdetter offfice: (310) 377-1521 . fax: (310) 377-7288 www.Rolling-Hills.org • CITY COUNCIL James Black, M.D. Bea Dieringer Leah Mirsch Jeff Pieper Patrick Wilson CITY MANAGER Raymond R. Cruz February 17, 2016 Issue No. 16-04 New Start Time for City Council Meetings beginning March 14th Beginning on March 14, 2016, the City Council meetings will begin at 7:00 p.m., instead of 7:30 p.m. Along with the change in start time, the "Open Agenda" portion of the meeting will be moved to the first item on the agenda. "Open Agenda" is the portion of the meeting where the public may address the City Council regarding any matter that is not on the printed agenda. Both of these changes were made in an affort to facilitate public engagement. Spring Clean-up Dates Set for Two Saturdays — April 9th and April 16th 6 Again this year, the Spring Clean-up will offer an opportunity to dispose of bulky items as well as unlimited greenwaste. The greenwaste pick-up will be Saturday, April 9 and the bulky item pick-up will be Saturday, April 16. Place items to be picked up along the roadside no more than 24 hours in advance of pickup. All greenwaste must be bagged, bundled or in a container and weigh no more than 60 lbs. Bundles should not exceed 2ft. in diameter and 4 ft. in length. For removal of large items such as refrigerators, please call Republic Services Customer Service to make special pickup arrangements. For questions, please call Republic Services at 800-299-4898. Community Shred Day April 30th Vi Republic Services will be holding a drive- thru Community Shred Day for residents of Rolling Hills on Saturday, April 30th. The event will take place from 10am until 1 pm in the parking area in front of the RHCA building. REMINDER: Please don't litter As residents and visitors, we are very fortunate to enjoy such a beautiful community. Not only for aesthetic purpose, but to prevent storm water pollution, it is very important to help keep the canyons, trails and roadway easements litter free. Please be conscious not to litter and if you happen upon any litter, please pick it up so that it doesn't make its way to a canyon or waterway. A little extra effort helps the Community and the environment. Household Hazardous Waste and e -Waste Roundup in RPV The Palos Verdes Peninsula's next Annual Household Waste/Electronic Waste Roundup is Saturday, May 14, 2016 from 9:00 am to 3:00 pm at Rancho Palos Verdes Civic Center, 30940 Hawthorne Blvd., Rancho Palos Verdes. For more information visit the LA County Sanitation District web site at www.lacsd.org. ROLLING HILLS CRIMES REPORTED For the time period January 24 -February 6, 2016 No crimes reported. City Council Public Hearing: Zoning Code Amendment to regulate medical marijuana cultivation and dispensaries. On Monday, March 14, 2016 at 7:00 p.m., during its regular meeting, the Rolling Hills City Council will hold a public hearing regarding a Zoning Code Amendment to regulate medical marijuana cultivation and dispensaries within the City. Recently enacted State legislation provides the City with greater authority for regulating medical marijuana activities. Traffic Safety & Parking Reminders Pedestrians should walk single -file, facing traffic, off of the roadway or as close to edge of the roadway as possible; and when walking at night, wear light- colored/reflective clothing. Drivers are also reminded to use additional caution during times in the morning and late afternoon when the sun is low in the sky; and to use windshield visors and sunglasses when driving into the sun. Also,. there is no overnight parking allowed along any roadways or in cul-de-sacs. When parking along the roadway, please be sure that the vehicle does not block equestrian trails, fire hydrants or driveways and that the vehicle is completely off of the roadway so as not to impede traffic. JppNMIN/,� RHCA ANNOUNCEMENTS RHCA Change to Resident Entry As of March 30th, all resident vehicles will need to have a headlamp transponder to enter through the resident lane. The RHCA will no longer be using License Plate Recognition to identify resident vehicles. If you do not have a transponder, please bring your vehicle to the RHCA office so RHCA staff can place one on your vehicle. The transponder is a small sticker that affixes to the headlamp of the vehicle. The RHCA office is open Monday - Thursday 7:30 a.m. - 4:45 p.m. and Fridays 7:30 a.m. - 12 noon. The office will also be open on a Saturday in March to accommodate residents who cannot come in during regular business hours. A notice will be sent to residents once that date is selected. If you have any questions, please contact the RHCA office at 310- 544-6222 or at info@ncca.net License Agreement Requests The RHCA advises the following regarding requests for license agreements to use easements. APPROVED: 15 Portuguese Bend Road for retaining wall in side easement; 17 Middleridge Lane North for BBQ and trellis is south easement; 11 Saddleback Road for lot line adjustment and vacation of easement. PENDING: 86 Crest Road East for landscaping in side easement. DENIED: None. UPCOMING CITY MEETINGS City Council Meetings • 02/22/16 at 7:30 p.m. and 03/14/16 at 7:00 p.m. Planning Commission Meeting 3/15/16 at 6:30 p.m. Traffic Commission Meeting 03/24/16 at 8:30 a.m. AGENDA CITY COUNCIL CITY OF ROLLING HILLS REGULAR MEETING MONDAY, FEBRUARY 22, 2016 7:30 P.M. THIS AGENDA MAY NOT BE COMPLETE. THE FINAL AGENDA WILL BE POSTED AT CITY HALL 72 HOURS BEFORE THE CITY COUNCIL MEETING. THE FINAL AGENDA IS ALSO POSTED ON THE CITY OF ROLLING HILLS WEBSITE AT WWW.ROLLING-HILLS.ORG. 1. CALL TO ORDER 2. ROLL CALL 3. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. Minutes - Regular Meeting of February 8, 2016. RECOMMENDATION: Approve as presented. B. Payment of Bills. RECOMMENDATION: Approve as presented. C. Financial Statement for the Month of January, 2016. RECOMMENDATION: Approve as presented. • D. Allied Recycling Tonnage Report for December, 2015 and January, 2016. RECOMMENDATION: Receive and file. 4. COMMISSION ITEMS NONE. 5. PUBLIC HEARINGS A. AT THE REQUEST OF THE PARTIES, THE PUBLIC HEARING ON THE APPEALS OF COMMITTEE ON TREES AND VIEWS RESOLUTION NO. 2015.03-CTV WILL BE CONTINUED TO A DATE TO BE SELECTED AT THIS MEETING. CONSIDERATION OF TWO APPEALS OF COMMITTEE ON TREES AND VIEWS RESOLUTION NO. 2015-03-CTV SETTING FORTH FINDINGS RELATING TO TRIMMING OF TREES AT 15 PORTUGUESE BEND ROAD DUE TO VIEW IMPAIRMENT FROM 18 PORTUGUESE BEND ROAD. 6. OLD BUSINESS A. CONSIDERATION OF RESOLUTION NO. 1182 ADOPTING ADMINISTRATIVE REGULATIONS INTERPRETING MEASURE B RELATING TO VIEW PRESERVATION. 7. NEW BUSINESS NONE. 8. • OPEN AGENDA - APPROXIMATELY 8:00 P.M. - PUBLIC COMMENT WELCOME 9. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS A. CONSIDERATION OF A REQUEST FROM THE LOS ANGELES COUNTY SOLID WASTE MANAGEMENT COMMITTEE/INTEGRATED WASTE MANAGEMENT TASK FORCE FOR A LETTER OF SUPPORT FOR A LOS ANGELES COUNTY PHARMECEUTICALS AND SHARPS COLLECTION AND DISPOSAL STEWARDSHIP ORDINANCE. B. UPDATE ON THE PALOS VERDES PENINSULA REGIONAL LAW ENFORCEMENT COMMITTEE MEETING HELD ON FEBRURY 11, 2016. (ORAL REPORT) 10. MATTERS FROM STAFF A. REPORT REGARDING PROCESS FOR REVIEWING DEVELOPMENT PROJECTS ELIGIBLE FOR ADMINISTRATIVE (OVER -THE COUNTER) APPROVAL. 11. CLOSED SESSION NONE. 12. ADJOURNMENT Documents pertaining to each agenda item are available for review in the City Clerk's office on after 2pm on the Friday before the meeting or at the meeting at which the item will be considered. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the Deputy City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. tL L06 n1u.o��0 �� �c��ll % 6iia/of pvof rag ""6"1"d / €17,W`' `��C/ 4ig C, itch o// o// n flew�/elter offfice: (310) 377-1521 . fax: (310) 377-7288 www.Rolling-Hills.org CITY COUNCIL James Black, M.D. Bea Dieringer Leah Mirsch Jeff Pieper. Patrick Wilson CITY MANAGER Raymond R. Cruz February 3, 2016 Issue No. 16-03 City Council Public Hearing: Zoning Code Amendment to ban medical marijuana cultivation and dispensaries within the City. On Monday, February 8, 2016 at 7:30 p.m., during its regular meeting, the Rolling Hills City Council will hold a public hearing regarding a Zoning Code Amendment to expressly ban medical marijuana cultivation and dispensaries within the City. Recently enacted State legislation provides the City with greater authority for regulating medical marijuana activities; but has added permitted new businesses such as "mobile dispensaries". The legislation provides that such deliveries and other activities must be expressly prohibited in order to be effectively regulated by the City. City Receives Positive Financial Audit Annually, the City Council engages an independent auditor to evaluate the City's financial records and accounting. Consistent with prior years, the auditor has issued an unmodified opinion, which is the highest level of assurance a City can receive, acknowledging that the City's 2014/2015 fiscal year finances and accounting procedures are in order. The annual audit process involves an auditor spending approximately 100 hours evaluating the City's financial documents and producing a Comprehensive Annual Financial Report (CAFR). The CAFR is available for review at City Hall or on line at www.Rolling-Hills.org. Check out Rolling Hills on the Web Have you visited the City Web site recently? If you haven't, check it out at www.Rolling-Hills.org. The site contains many valuable resources and the City is continually posting new information for residents. Whether you are looking for information about brush clearance, development standards, answers to frequently asked questions or the City's Municipal Code, they can all be found at the City's Web site. You can also sign up to receive notification of City Council meetings, Committee meetings and pending ordinances, as well as sign up for the City's Emergency Notification System. If you have any questions or if you would like more information on the City web site, visit the site or call City Hall at 310-377-1521. Household Hazardous Waste and e -Waste Roundup in RPV The Palos Verdes Peninsula's next Annual Household Waste/Electronic Waste Roundup is Saturday, May 14, 2016 from 9:00 am to 3:00 pm at Rancho Palos Verdes Civic Center, 30940 Hawthorne Blvd., Rancho Palos Verdes. For more information visit the Los Angeles County Sanitation District web site at www.lacsd.org. ROLLING HILLS CRIMES REPORTED For the time period January 10-23, 2016 No crimes reported. Spring Clean-up Dates Set for Two Saturdays — April 9th and April 16th ipT Again this year, the Spring Clean-up will "` offer an opportunity to dispose of bulky items as well as unlimited greenwaste. The greenwaste pick-up will be Saturday, April 9 and the bulky item pick-up will be Saturday, April 16. Place items to be picked up along the roadside no more than 24 hours in advance of pickup. All greenwaste must be bagged, bundled or in a container - and weigh no more than 60 lbs. Bundles should not exceed 2ft. in diameter and 4 ft. in length. For removal of large items such as refrigerators, please call Republic Services Customer Service to make special pickup arrangements. For questions, please call Republic Services at 800-299-4898. Community Shred Day April 30th rag Republic Services will be holding a drive- thru Community Shred Day for residents of itime Rolling Hills on Saturday, April 30th. The event will take place from 10am until 1pm in the parking area in front of the RHCA building. ��pMYq'ry, ft" RHCA ANNOUNCEMENTS RHCA 2016 Board Election Results At the RHCA Annual Meeting, Roger Hawkins was elected to the Board for a one-year term and Matthew McConaughy was elected to the Board for a three-year term. Following are the election results by candidate: Roger Hawkins, 117 votes; Joseph Heitzler, 112 votes; Matthew McConaughy, 165 votes. Thank you to all the candidates. Rolling Hills 50+ Valentine Brunch The 50+ Valentine Brunch will be held on Saturday, February 13 at 11:00 a.m. at the home of John and Maureen Nunn (brunch will be served at 11:30 a.m.) Cost $20 per person. RSVP no later than February 5 to Maureen Hill at 310-377-2181. Please park on Crest Rd. License Agreement Requests The RHCA advises the following regarding requests for license agreements to use easements. APPROVED: None. PENDING: 86 Crest Road East for landscaping in side easement; 15 Portuguese Bend Road for retaining wall in side easement; 17 Middleridge Lane North for retaining wall in north easement and BBQ and trellis in south easement; 11 Saddleback Road for lot line adjustment and vacation of easement. DENIED: None. UPCOMING CITY MEETINGS City Council Meetings 02/08/16 and 02/22/16 at 7:30 p.m. City Council Field Trip 02/22/16 at 7:00 a.m. (18&15 Portuguese Bend Rd.) Planning Commission Meeting 2/16/16 at 6:30 p.m. Traffic Commission Meeting 03/24/16 at 8:30 a.m. AGENDA CITY COUNCIL CITY OF ROLLING HILLS REGULAR MEETING MONDAY, FEBRUARY 8, 2016 7:30 P.M. THIS AGENDA MAY NOT BE COMPLETE. THE FINAL AGENDA WILL BE POSTED AT CITY HALL 72 HOURS BEFORE THE CITY COUNCIL MEETING. THE FINAL AGENDA IS ALSO POSTED ON THE CITY OF ROLLING HILLS WEBSITE AT WWW.ROLLING-HILLS.ORG. 1. CALL TO ORDER 2. ROLL CALL 3. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. Minutes - Regular Meeting of January 25, 2016. RECOMMENDATION: Approve as presented. B. Payment of Bills. RECOMMENDATION: Approve as presented. 4. COMMISSION ITEMS NONE. 5. PUBLIC HEARINGS A. ZONING CASE NO. 869, SUBDIVISION NO. 94. VESTING TENTATIVE PARCEL MAP NO. 72775 — A REQUEST TO SUBDIVIDE AN EXISTING LOT TOTALING 7.05 ACRES GROSS INTO 2 PARCELS OF LAND AS FOLLOWS: PARCEL 1: 3.70 GROSS ACRES, 3.0 NET ACRES; PARCEL 2: 3.34 GROSS ACRES, 2.67 NET ACRES. THE PROPERTY IS CURRENTLY VACANT LOT LOCATED ON THE SOUTH SIDE OF CREST ROAD EAST, KNOWN AS 23 CREST ROAD EAST, (LOT 32 -A -MS), PARCEL NO.: 7567-011-020 IN THE RA -S-2 ZONE, RESIDENTIAL AGRICULTURAL -SUBURBAN 2 -ACRE MINIMUM NET LOT AREA, TO BE IMPLEMENTED BY MR. JIM HYNES. PURSUANT TO CEQA REQUIREMENTS, IT WAS DETERMINED THAT THE PROJECT WILL NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT WITH APPLICABLE MITIGATION MEASURES AND THEREFORE, A MITIGATED NEGATIVE DECLARATION HAS BEEN PREPARED. B. ORDINANCE NO. 347 AND 347-U — AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY AND DECLARING THE URGENCY THEREOF.. RECOMMENDATION: Waive full reading and introduce on first reading Ordinance No. 347; and waive full reading and adopt Ordinance No. 347-U declaring the urgency thereof. 6. OLD BUSINESS A. SECOND READING, WAIVE FULL READING AND ADOPT ORDINANCE NO. 346. AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE RELATING TO VIEW PRESERVATION, IN ZONING CASE NO. 881 AND ZONING CODE AMENDMENT NO. 2015-03. THE PROJECT 'HAS BEEN DETERMINED TO BE CATEGORICALLY EXEMPT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). B. CONSIDERATION OF RESOLUTION NO. 1182 ADOPTING ADMINISTRATIVE REGULATIONS INTERPRETING MEASURE B RELATING TO VIEW. PRESERVATION. 7. NEW BUSINESS NONE. 8. OPEN AGENDA - APPROXIMATELY 8:00 P.M. - PUBLIC COMMENT WELCOME 9. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS A. CONSIDERATION OF A REQUEST FROM THE LOS ANGELES COUNTY SOLID WASTE MANAGEMENT COMMITTEE/INTEGRATED WASTE MANAGEMENT TASK FORCE FOR A LETTER OF SUPPORT FOR A LOS ANGELES COUNTY PHARMECEUTICALS AND SHARPS COLLECTION AND DISPOSAL STEWARDSHIP ORDINANCE. B. DISCUSSION REGARDING MOVING THE OPEN AGENDA ITEM ON THE CITY COUNCIL AGENDA TO EARLIER IN THE MEETING. (ORAL) C. COYOTE CONTROL. (ORAL) 10. MATTERS FROM STAFF NONE. 11. CLOSED SESSION NONE. 12. ADJOURNMENT Documents pertaining to each agenda item are available for review in the City Clerk's office on after 2pm on the Friday before the meeting or at the meeting at which the item will be considered. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the Deputy City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. t7LLO6 n,v.o, v 617cy l G(/TUU/// / RGG//'U 1/ V/ /° (41g -Palos Vales Peninsula News 609 Deep Valley Dr., Suite 200, Rolling Hills Estates, CA., 90274 PROOF OF PUBLICATION (201 5.5 C.C.P.) STATE OF CALIFORNIA County of Los Angeles, I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eigh- teen years, and not a party to or interested in the above -entitled matter. I am the chief legal advertisng clerk of the publisher of the PALOS VERDES PENINSULA NEWS a -newspaper of general circulation, printed and published weekly in the City of Rolling Hills Estate County of Los Angeles, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of County of Los Angeles, State of California, under the date of February 15, 1977 Case Number C824957, that the notice of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: January 28, all in the year 201,6 I certify (or declare) under penalty of perjury that the foreg. Dated at Signature Rolling Hills Estates, California this 28th of January, 2016 nicf-Ac-cm kcCEiVED This space is for ReougoCjagg Filing Stamp City of Rolling Hills By T~P.V.P. News No. 12489 . NOTICE OF PUBLIC HEARING BEFORE THE . CITY COUNCIL OF THE . CITY OF ROLLING HILLS, CALIFORNIA NOTICE IS HEREBY GIVEN, that the City Council of the City of Rolling Hills will hold a Public Hearing at 7:30 PM on Monday, February 8, 2016 in the Council Chambers of City Hall, 2 Portuguese Bend Road, Rolling Hills, CA for the purpose of receiving public input regarding the following proposed ordinance: AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY AND DECLARING THE URGENCY THEREOF. , . The purpose of the urgency ordinance is to amend the Municipal Code to prohibit all commercial medical mari- juana cultivation and dispensation occurring within the City in order to protect City residents from the negative• and dangerous effects these uses have upon peace and safety. Absent immediate effectiveness, the cultivation of medicinal marijuana will be authorized and regulated solely by the State during the time anon -urgency ordi- nance would be required to take effect. Additionally, without a clear statement of prohibition in the Municipal Code, mobile marijuana dispensaries could begin oper- ating within the City. This urgency ordinance is proposed in accordance with Government Code section 36937.. MUNICIPAL CODE APPLICATIONS: Chapter 17.50 Zoning Code Amendment Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA) and CEQA1 Guidelines of the 'City of Rolling Hills, it has been deter- mined that this ordinance is exempt'from review under the California Environmental Quality Act (California1 Public Resources Code §§ 21000, et seq., "CEQA") andl the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et- seq., the "CEQA Guidelines") because it enacts regulations that are appli- cable to new or altered development projects subject to project specific review. Therefore, it can be seen 'with certainty that there is no possibility that this ordinance, will cause a direct physical change in the environment; and therefore the adoption of this ordinance1is.noot,con- sidered a projectper.:section 21065 of CEQA!Iri addition;, this :ordinance is` an action being taken. for .chanced protection of the environment that doesi`notIfia`ve the potential to cause significant effects on the environment. Consequently, it is categorically exempt in accordance with CEQA Guidelines §§ 15305 as a minor alteration in land use limitations which do not result in any changes in land use or density; and 15308 as an action taken by a regulatory agency for protection of the environment. Any person is welcome to, review the proposed ordi- nance prior to the public hearing at the City Hall Administration Building located at 2 Portuguese Bend Road, Rolling Hills, CA during regular working hours and come to the meeting.. If you challenge the approval or denial of the proposed ordinance !in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspon- dence delivered to the City Council at, or prior to, the public hearing. Published in the Palos Verdes Peninsula News on January 28, 2016. CITY OF ROLLING HILLS PROOF OF SERVICE BY MAIL AND POSTING STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES - I -am a citizen of the -United States. I -am over the -age of eighteen__years_ and not_a party to the_ _ within proceeding; my business address is 2 Portuguese Bend Road, Rolling Hills, California. On the 28`h day of January, 2016, I serve the within City Council - Notice of Public Hearing Ordinance — Amending Title 17 (Medical Marijuana) a copy of which is annexed hereto and made a part hereof, on the person, or persons, named below by placing a true copy thereof enclosed in a sealed envelope with postage thereon fully prepaid, in the United States mail at Rolling Hills, California addressed as follows: PUBLISHED PV News EMAILED Pending Ordinances ListSery DELIVERED None. Also posted at City Hall and on www.Rolling-Hills.org /Pending Ordinances I declare under penalty of perjury, that the foregoing is true and correct. Executed on the 28th day of January, 2016 at Rolling Hills, California. EWA NIKODEM ADMINISTRATIVE ASSISTANT 6€4 Ra11410 qr.& INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA NOTICE IS HEREBY GIVEN, that the City Council of the City of Rolling Hills will hold a Public Hearing at 7:30 PM on Monday, February 8, 2016 in the Council Chambers of City Hall, 2 Portuguese Bend Road, Rolling Hills, CA for the purpose of receiving public input regarding the following proposed ordinance: AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION AND DISPENSARIES WITHIN THE CITY AND DECLARING THE URGENCY THEREOF. The purpose of the urgency ordinance is to amend the Municipal Code to prohibit all commercial medical marijuana cultivation and dispensation occurring within the City in order to protect City residents from the negative and dangerous effects these uses have upon peace and safety. Absent immediate effectiveness, the cultivation of medicinal marijuana will be authorized and regulated solely by the State during the time a non -urgency ordinance would be required to take effect. Additionally, without a clear statement of prohibition in the Municipal Code, mobile marijuana dispensaries could begin operating within the City. This urgency ordinance is proposed in accordance with Government Code section 36937. . MUNICIPAL CODE APPLICATIONS: Chapter 17.50 Zoning Code Amendment Pursuant to the authority and criteria contained m the California Environmental Quality Act (CEQA) and CEQA Guidelines of the City of Rolling Hills, it has been determined that this ordinance is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines") because it enacts regulations that are applicable to new or altered development projects subject to project specific review. Therefore, it can be seen with certainty that there is no possibility that this ordinance will cause a direct physical change in the environment, and therefore the adoption of this ordinance is not considered a project per section 21065 of CEQA. In addition, this ordinance is an action being taken for enhanced protection of the environment that does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt in accordance with CEQA Guidelines §§ 15305 as a minor alteration in land use limitations which do not result in any changes in land use or density; and 15308 as an action taken by a regulatory agency for protection of the environment. Any person is welcome to review the proposed ordinance prior to the public hearing at the City Hall Administration Building located at 2 Portuguese Bend Road, Rolling Hills, CA during regular working hours and come to the meeting. If you challenge the approval or denial of the proposed ordinance in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Published in Palos Verdes Peninsula News on January 28, 2016. Delivery from outside of the city of prepaid for medical cannabis or medical marijuana to an individual's home shall be exempt from any provision set forth in chapter 17 of the City of Rolling Hills Residences Bill of Rights Nothing in the Rolling Hills municipal code should be construed to limit or prevent an. individual with a doctor's approval for medical cannabis or medical marijuana from having prepaid medical cannabis or medical marijuana being delivered to their home from outside of the city by State Licensed Delivery Service. Nothing in the Rolling Hills municipal code should be construed to limit or prevent an individual with a doctor's approval for medical cannabis or medical marijuana from processing or cultivating enough state legal cannabis for personal use. However, municipal code may prevent an individual from selling or even giving away any cannabis or cannabis product to anyone else, including (but not limited to) other individuals that have a doctor's approval for medical cannabis or medical marijuana. RECEIVED JAN 2 0 2016 City of Rolling Hills By -F,ec.m tit% 1V4.vi1c., Delivery from outside of the city of prepaid for medical cannabis or medical marijuana to an individual's home shall be exempt from any provision set forth in chapter 17 of the City of Rolling Hills CResid- es BiIl of Rights I Nothing in the Rolling Hills -municipal code sshould be construed to limit or -prevent n individual with a doctor's approval for medical cannabis or medical marijuana from having prepaid medical cannabis or medical marijuana being delivered to their home from outside of the city by State Licensed Delivery Service. ,I Nothing in the Rolling Hills municipal code should be construed to limit or prevent an individual with a doctor's approval for medical cannabis or medical marijuana from processing or cultivating enough state legal cannabis for personal use. However, municipal code may prevent an individual from selling or even giving away any cannabis or cannabis product to anyone else, including (but not limited to) other individuals hat have a.doctor's approval for medical cannabis or \medicalimanjuana -- -- - RECEIVED JAN 2 5 2016 C of Rolling ills By (,t 0 POLIO Gjjynm6N r f p m AUfae Opp AT-ndau TYvm fur AccGuk al Rai&if qiceed INCORPORATED JANUARY 24, 1957 TO: FROM: SUBJECT: NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 Agenda Item No.:8C Mtg. Date: 01/19/16 HONORABLE CHAIRMAN AND MEMBERS OF THE PLANNING COMMISSION YOLANTA SCHWARTZ, PLANNING DIRECTOR NATALIE C. KARPELES, ASSISTANT CITY ATTORNEY PUBLIC HEARING REGARDING PROPOSED ADDITION OF CHAPTER 17.29 TO TITLE 17, AS WELL AS PROPOSED AMENDMENTS TO SECTIONS 17.08.050 AND 17.16.020 OF THE ROLLING HILLS MUNICIPAL CODE, TO PROHIBIT THE DELIVERY, CULTIVATION, AND DISPENSING OF MEDICAL MARIJUANA, IN ZONING CASE NO. 899 AND ZONING CODE AMENDMENT NO. 2016-01. DATE PUBLISHED: JANUARY 7, 2016 ATTACHMENTS: A) PROPOSED AMENDMENTS TO TITLE 17 OF THE RHMC (amendments underlined) B) RESOLUTION NO. 2016-01 (recommendation that the City Council to adopt an Ordinance prohibiting cultivation, delivery and dispensing of medical marijuana within the City's boundaries). BACKGROUND In 1996, the voters of the State of California approved Proposition 215, entitled the Compassionate Use Act, the intent of which was to enable persons who are in need of medical marijuana to use it without fear of prosecution under limited, specified circumstances. In 2004, the Legislature enacted Senate Bill 420 (referred to as the Medical Marijuana Program) to clarify the scope of Proposition 215 and to provide qualifying patients and primary caregivers who cultivate marijuana with a limited defense to certain specified State criminal statutes. Assembly Bills 2650 (2010) and 1300 (2011) amended the Medical Marijuana Program to expressly recognize the authority of counties and cities to "adopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective" and to civilly and criminally enforce such ordinances. In 2013, in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc.1, the California Supreme Court held that "[n]othing in the [Compassionate Use Act] or the [Medical Marijuana Program] expressly or impliedly limits the inherent authority of a local jurisdiction, by its own ordinances, to regulate the use of its land...." Additionally, in Maral v. City of Live Oak2, the Court of Appeal affirmed the ability of local government entities to prohibit the cultivation of marijuana under its land -use authority, holding that "there is no right - and certainly no constitutional right - to cultivate medical marijuana...." On October 9, 2015, Governor Brown signed three bills into law - Assembly Bills 266 and 243, and Senate Bill 643 - collectively referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA"). Prior to the passage of the MMRSA, Statelaw provided no legal mechanism for commercial cultivation of marijuana for medicinal purposes and Federal law prohibited all cultivation of marijuana. Until the MMRSA was passed, cultivation of marijuana for medicinal purpose's in California was restricted to individual qualified patients or their primary care givers for non-commercial purposes and limited to personal quantities. The MMRSA became effective on January 1, 2016 and contains provisions that govern the cultivating, processing, transporting, testing, and distributing of medical marijuana to qualified patients. The MMRSA also contains new statutory provisions that: • Set up a "dual licensing" scheme which requires dispensaries and cultivators to obtain a local license prior to requesting and obtaining a license from the State; no dispensary or cultivation activity may lawfully operate without both a State and local license. • Allow the City to completely prohibit the delivery of marijuana by requiring a local government that wishes to prevent marijuana delivery activity3 from operating within the local government's boundaries to enact an ordinance affirmatively banning such delivery activity (see Business & Professions Code § 19340(a)). • Preserves the ability of a qualified patient and/ or primary caregiver to cultivate for personal, non-commercial purposes, sets new limits on such cultivation, and exempts such personal cultivation from State cultivation licensing requirements. Furthermore, the MMRSA allows local governments to enact ordinances expressing their intent to prohibit the cultivation of marijuana and their intent 1 56 Ca1.0 729 2 221 Ca1.Appg 975 3 As defined in Business and Professions Code § 19300.5 not to administer a conditional permit program for the cultivation of marijuana (see Health & Safety Code § 11362.777(c)(4)). • Expressly provide that the MMRSA does not supersede or limit local law enforcement activity, enforcement of local ordinances, or enforcement of local permit or licensing requirements regarding marijuana (see Bus. & Prof. Code § 19315(a)). • Expressly provide that the MMRSA does not limit the authority or remedies of a local government under any provision of law regarding marijuana, including but not limited to local governments' right to make and enforce within its limits all police regulations not in conflict with general laws (see Bus. & Prof. Code § 19316(c)). The MMRSA, however, also states that if a city or county has not adopted land use regulations by March 1, 2016 to either regulate or ban the cultivation, distribution and use of marijuana, the State will be the sole authority that issues cultivation licenses in that jurisdiction, meaning no local license will be required. Specifically, Health & Safety Code § 11362.777(a)(4) states: If a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program pursuant to this section, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that city, county, or city and county. Commercial medical marijuana activities, as well as cultivation for personal medical use as allowed by the Compassionate Use Act and the Medical Marijuana Program, can adversely affect the health, safety, and well-being of City residents. Further, as recognized by the Attorney General's August 2008 Guidelines for the Security and Non - Diversion of Marijuana Grown for Medical Use, marijuana cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that surrounding homes or businesses may be negatively impacted by nuisance activity such as loitering or crime. While the Compassionate Use Act and Medical Marijuana Program provide limited immunity from specified State marijuana laws, this immunity does not grant any land use rights or create the right to maintain a public nuisance. SUMMARY OF PROPOSED REVISIONS Until now, the City's land use regulations were not required to expressly prohibit commercial cultivation of medicinal marijuana because it was not legal (pursuant to State or Federal law) and because such commercial cultivation is not recognized as a specifically allowed use in the City's land use districts. Prior to the effective date of this ordinance, the cultivation, processing and distribution of medical marijuana in the City is prohibited to the extent such activities are prohibited by the Federal Controlled Substances Act, or other law. Title 17 of the Rolling Hills Municipal Code (the City's Zoning Ordinance) lists specifically permitted uses within the City's various zones. As medical marijuana dispensaries are not permitted by right or with a conditional use permit, they are prohibited. Because the Rolling Hills Municipal Code does. not currently expressly and separately prohibit the cultivation or delivery of marijuana within the City, Title 17 has historically been applied to prohibit or preclude these types of activities. In order to ensure full local . control over regulation of commercial cultivation of marijuana for medicinal purposes in the City is preserved, the MMRSA requires the City to adopt an ordinance explicitly regulating commercial cultivation by March 1, 2016 to ensure the State is not the sole regulator of cultivation activities. Additionally, the MMRSA also contains language that requires delivery services to be expressly prohibited by local ordinance, if the City wishes to do so. Attached to this Memorandum is the proposed Resolution recommending to the City Council to amend the Zoning Ordinance by adding Chapter 17.29 to Title 17, as well as proposed amendments to sections 17.08.050 and 17.16.020 of the Rolling Hills Municipal Code in order to impose an express ban on marijuana cultivation, delivery, . and dispensaries within the City. If adopted by the City Council, the ordinance will: • Prohibit the cultivation, delivery and distribution of marijuana in all zones within the City by expressly listing them as a non -permitted uses; • Add Chapter 17.29 to Title 17 ("Zoning") of the Rolling Hills Municipal Code to extensively regulate the delivery, cultivation and dispensing of marijuana within the City. Specifically, Chapter 17.29 will: o Prohibit mobile marijuana dispensaries4 from operating within the City; o Expressly prohibit deliveries of marijuana both within the City, as well as deliveries to and from the City; o Expressly prohibit the cultivation of marijuana for commercial and non- commercial purposes by any person (including qualified patients and primary caregivers) anywhere in the City; and o Regard any violation of the ordinance to be a nuisance subject to summary abatement, and/ or administrative citation, among other enforcement remedies RECOMMENDATION It is recommended that the Planning Commission review the staff report, open the public hearing, take public testimony and adopt Planning Commission Resolution No. 4 The MMRSA identifies a new business model for the distribution of marijuana: "mobile dispensaries." Mobile dispensaries involve the commercial transportation of medical marijuana to qualified patients or caregivers by a dispensary or via any technology platform, which may be independently licensed or owned by the dispensary. According to the provisions of the MMRSA, mobile dispensaries must be expressly identified and banned in order to be prohibited. 2016-01 (Attachment 1) recommending that the City Council approve an Ordinance amending sections 17.08.050 and 17.16.020 of the Rolling Hills Municipal Code; and add Chapter 17.29 to Title 17 of the Rolling Hills Municipal Code in order to impose an express ban on medical marijuana cultivation, delivery and dispensaries within the City. THIS PAGE INTENTIONALLY LEFT BLANK ATTACHMENT A Amend Title 17 (ZONING) as follows: 1. Add subparagraph B. to Section 17.08.050 - Zoning compliance required. A. Except as provided in this title, no building shall be erected, reconstructed or structurally altered, nor shall any building or land be used for any purpose except as specifically provided for and allowed by this title. Any use or structure not specifically permitted by this title shall be prohibited. B. The cultivation, delivery, and mobile dispensing of marijuana are highly objectionable uses; as such the cultivation delivery and mobile dispensing of marijuana are expressly prohibited in all zones of the Cit (per Section 17.16.020 B and Cha .ter 17.29 . Accordingly, the City shall not issue any permit; license, or other entitlement for the cultivation, delivery and mobile dispensing of marijuana. 2. Add subparagraphs 3, 4 and 5 to Section 17.16.020 B - Permitted and prohibited uses. 17.16.020 - Permitted and prohibited uses. A. Uses permitted in the RA -S zone as primary uses include: 1. Single-family residences; 2. Tree, bush or field crops provided there is no retail sale from the premises and provided the activity does not cause undue traffic not normally associated with residential use. B. The following uses are prohibited in the RA -S zone: 1. It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation a residential dwelling or a room in a dwelling for occupancy of less than thirty days. 2. It shall be unlawful for any person to occupy a residential dwelling or a room in a dwelling for less than thirty days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation. -6- 3. Cannabis delivery, including the use by a medical marijuana dispensary of any technology platform owned and controlled by the medical marijuana dispensary, or independently licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables persons, qualified patients, and/or primary caregivers to arrange for or facilitate the commercial transfer of medical marijuana or medical marijuana products, defined in Chapter 3.5 of the Health and Safety Code, as may be amended. 4. Commercial cannabis activities, including cultivation, possession, manufacture, possessing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical marijuana or medical marijuana products, except as set forth in Business and Professions Code section 19319, related to qualified patients and/or primary caregivers. 5. Cultivation of cannabis or medical marijuana, including the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana or cannabis, defined in Chapter 3.5 of the Health and Safety Code, as may be amended. 3. Add Chapter 17.29 Medical Marijuana Regulation to Title 17 (ZONING) of the Rolling Hills Municipal Code to read as follows: Tile 17 Chapter 17.29 Medical Marijuana Regulation Sections: 17.29.010 Definitions 17.29.020 Prohibition 17.29.030 Public Nuisance Sec. 17.29.010 Definitions. As used in this chapter: Cannabis, or Marijuana, shall have the same definition as Health and Safety Code section 11018. Commercial Cannabis Activity means cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of Medical Cannabis or a Medical Cannabis product, except as set forth in -7- Business and Professions Code Section 19319, related to Qualifying Patients and Primary Caregivers. Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis. Delivery shall include the use by a Dispensary of any technology platform owned and controlled by the Dispensary, or independently licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables Persons, Qualified Patients, and/or Primary Caregivers to arrange for or facilitate the commercial transfer of Medical Cannabis or'Medical Cannabis products. Dispensary means a facility where Medical Cannabis, Medical Cannabis products, or devices for the use of Medical Cannabis or Medical Cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that Delivers Medical Cannabis and Medical Cannabis products as part of a retail sale. Medical Cannabis means a product containing Cannabis, including but not limited to, concentrates and extractions, intended to be sold by Medical Cannabis patients in California pursuant to Health and Safety Code section 11362.5 and 11362.7. Medical Marijuana Regulation and Safety Act shall refer to Chapter 3.5 of the California Business and Professions Code, commencing with section 19300, et seq. Mobile Marijuana Dispensaries means any Dispensary, clinic, cooperative, association, club, business or group which transports or Delivers, or arranges the transportation or Delivery, of Medical Cannabis to a Person. Person means any individual, firm, corporation, association, club, society, or other organization. The term Person shall include any owner, manager, proprietor, employee, volunteer, or salesperson. Primary Caregiver shall have the same definition as Health and Safety Code section 11362.7, as may be amended. Qualified Patient shall have the same definition as Health and Safety Code section 3362.7, as may be amended, and which means a Person who is entitled to the protections of Health and Safety Code section 11362.5. For the purposes of this Article, Qualified Patient shall include a Person with an identification card, as that term is defined by Health and Safety Code section 11362.7 et seq. Sec. 17.29.020 Prohibition. A. Commercial Cannabis Activities of all types are expressly prohibited in all zones within the City's jurisdictional limits. No Person shall establish, operate, conduct, or allow a Commercial Cannabis Activity anywhere within the City. B. Mobile Marijuana Dispensaries are prohibited in all zones within the City's jurisdictional limits. No Person shall: 1 Locate, operate, own, suffer, allow to be operated or abide, abet or assist in the operation of any Mobile Marijuana Dispensary within the City; 2. Deliver Marijuana 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; or 3. Deliver any Medical Cannabis product, including, but not limited to tinctures, baked goods, or other consumable products, 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. C. This section is meant to prohibit all activities for which a State license is required. Accordingly, the City shall not issue any permit, license or other entitlement for any activity for which a State license is required under the Medical Marijuana Regulation and Safety Act. D. Marijuana cultivation by any person or entity, including clinics, collectives, cooperatives and dispensaries, is prohibited in all zones within the City's jurisdictional limits. No permit, whether conditional or otherwise, shall be issued for the establishment of such activity. No Person, including a Qualified Patient or Primary Caregiver, shall Cultivate any amount of Cannabis in the City, even for medicinal purposes, except where the City is preempted by federal or state law from enacting a prohibition on such activity. Sec. 17.29.030 Public Nuisance. Any use or condition caused, or permitted to exist, in violation of any provision of this Article shall be, and hereby is declared to be, a public nuisance and may be summarily abated by the City pursuant to Code of Civil Procedure section 731 or any other remedy available to the City. -9- ATTACHMENT B THIS PAGE INTENTIONALLY LEFT BLANK RESOLUTION NO. 2016-01 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS RECOMMENDING THAT THE CITY COUNCIL AMEND TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION, DELIVERY AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMNET NO. 2016-01. THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1. Rolling Hills Municipal Code ("RHMC") Section 17.08.050 provides that uses not specifically permitted in the RHMC are prohibited. Section 17.16.020 provides a list of permitted uses and prohibited uses. Commercial uses are not specifically permitted; therefore, they are prohibited. However, the City has determined that recent developments in State Law regarding the regulation of medical marijuana make it necessary to clarify that uses such as the cultivation, delivery and dispensation of marijuana are expressly banned in the City of Rolling Hills. Section 2. The Project has been reviewed in accordance with the California Environmental Quality Act, and it has been determined that the proposed project would not have a significant effect on the environment. Section 3. Chapter 17.50 of the RHMC sets forth procedures for amending the Zoning Ordinance. A public hearing before the Planning Commission is necessary before a recommendation for a Zoning Code amendment can be made to the City Council. On January 19, 2016 the Planning Commission held a duly noticed public hearing and accepted public testimony. Section 4. The Planning Commission considered the information provided by City staff, public testimony, and other evidence regarding the Project. This Resolution, and its findings, are based upon the evidence presented to the Commission at its January 19, 2016 hearing, including, without limitation, the staff report submitted and finds that the proposed Zoning Ordinance amendments comply with the requirements of the City of Rolling Hills General Plan, Rolling Hills Municipal Code and State Planning and Zoning Laws (Government section 65000 et seq.). Section 5. The Planning Commission does hereby find and declare as follows: A. On October 9, 2015, Governor Brown signed three bills into law — Assembly Bills 266 and 243, and Senate Bill 643 — collectively referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA"). The MMRSA became effective on January 1, 2016 and contains provisions that govern the cultivating, processing, transporting, testing, and distributing of medical marijuana to qualified patients. B. The MMRSA states that if a city or county has not adopted land use regulations by March 1, 2016, to either regulate or ban cultivation of marijuana for medicinal Resolution No. 2016-01 1 purposes, the State will be the sole authority that issues cultivation licenses in that jurisdiction, meaning no local license will be required. C. Commercial medical marijuana activities, as well as cultivation for personal medical use as allowed by the Compassionate Use Act and the Medical Marijuana Program, can adversely affect the health, safety, and well-being of City residents. Further, as recognized by the Attorney General's August 2008 Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use, marijuana cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that surrounding homes or businesses may be negatively impacted by nuisance activity such as loitering or crime. D. The Rolling Hills Municipal Code (RHMC) does not currently expressly and separately prohibit the cultivation or delivery of marijuana within the City, Title 17 has historically been applied to prohibit or preclude these types of activities. In order to ensure full local control over regulation of commercial cultivation of marijuana for medicinal purposes in the City is preserved, the MMRSA requires the City to adopt an ordinance expressly regulating commercial cultivation by March 1, 2016 to ensure the State is not the sole regulator of cultivation activities. Additionally, the MMRSA also contains language that requires delivery services to be expressly prohibited by local ordinance, if the City wishes to do so. E. The Zoning Ordinance text amendments are consistent with the goals, policies, and objectives of the General Plan because the Project is in the public interest and there are community benefits resulting from the regulation of medical marijuana. F. The Zoning Ordinance text amendments promote the health, safety, and welfare of Rolling Hills' residents and serve the goals and purposes of RHMC Title 17 by ensuring compliance with the Medical Marijuana Regulation and Safety Act. G. The California Environmental Quality Act (CEQA) requires that the environmental impacts of the action be assessed. The proposed amendment will not in itself result in any environmental impacts nor will the amendment result in any changes in the physical conditions that exist in the City. Staff has determined the project to be Categorically Exempt from the California Environmental Quality Act (CEQA) Guidelines per § 15061 (b)(3). Section 6. The Planning Commission recommends that the City Council adopt the Zoning Ordinance text amendments as set forth in attached Attachment A, which is incorporated by reference. Section 7. Each and every one of the findings and determinations in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects and are fully and completely supported by substantial evidence in the record as a whole. Section 8. The Planning Commission's analysis and evaluation of the Project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis Resolution No. 2016-01 2 e of the project is the Planning Commission's lack of knowledge of future events. In all instances, best efforts have been made to form accurate assumptions. Somewhat related to this are the limitations on the City's ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework. Section 9. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact. Section 10. This Resolution will remain effective until superseded by a subsequent resolution. . PASSED, APPROVED AND ADOPTED THIS 19th DAY OF JANUARY, 2016. BRAD CHELF, CHAIRMAN ATTEST: HEIDI LUCE CITY CLERK Any action challenging the final decision of the City made as a result of the public hearing on this application must be filed within the time limits set forth in section 17.54.070 of the Rolling Hills Municipal Code and Code of Civil Procedure Section 1094.6. Resolution No. 2016-01 3 STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF ROLLING HILLS ) §§ I certify that the foregoing Resolution No. 2016-01 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS RECOMMENDING. THAT THE CITY COUNCIL AMEND TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE BY AMENDING SECTIONS 17.08.050 AND 17.16.020 AND ADDING CHAPTER 17.29 IN ORDER TO IMPOSE AN EXPRESS BAN ON MEDICAL MARIJUANA CULTIVATION, DELIVERY AND DISPENSARIES WITHIN THE CITY IN ZONING CASE NO. 899 AND ZONING CODE AMENDMNET NO. 2016-01. was approved and adopted at a regular meeting of the. Planning Commission on January 19th, 2016 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: and in compliance with the laws of California was posted at the following: Administrative Offices. HEIDI LUCE CITY CLERK Resolution No. 2016-01 4 ATTACHMENT A Amend Title 17 (ZONING) as follows: 1. Section 17.08.050 of the Rolling Hills Municipal Code is hereby amended to read as follows: A. Except as provided in this title, no building shall be erected, reconstructed or structurally altered, nor shall any building or land be used for any purpose except as specifically provided for and allowed by this title. Any use or structure not specifically permitted by this title shall be prohibited. t ion, delivery and mobile dispensing of marijuana are expressly prohibited in all zones of the City (per Section 17.16 020 B and Chapter 17.29). Accordingly, the City shall not issue any permit, license, or other entitlement for the cultivation, delivery and mobile dispensing of marijuana. 2. Section 17.16.020 B of the Rolling Hills Municipal Code is hereby amended by adding subparagraph 3, 4, and 5 and shall read as follows: 17.16.020 - Permitted and prohibited uses. B. The following uses are prohibited in the RA -S zone: 1. It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation a residential dwelling or a room in a dwelling for occupancy of less than thirty days. 2. It shall be unlawful for any person to occupy a residential dwelling or a room in a dwelling for less than thirty days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation. e technology platform owned and controlled by the medical marijuana dispensary, or independently licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables persons, qualified patients, and/or primary caregivers to arrange for or facilitate the commercial transfer of medical marijuana or medical marijuana products defined in Chapter 3 5 of the Health and Safety Code, as may be amended 4. Commercial cannabis activities, including cultivation, possession, manufacture, possessing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical marijuana or medical marijuana products_ except as set forth in Business and Professions Code section 19319, related to qualified patients and/or primary caregivers. Resolution No. 2016-01 5 01- Cultivation of cannabis or medical marijuana, including the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana or cannabis, defined in Chapter 3.5 of the Health and Safety Code, as may be amended. 3. Title 17, Chapter 17.29, "Medical Marijuana Regulation" is hereby added to the Rolling Hills Municipal Code to read as follows: Tile 17 Chapter 17.29 Medical Marijuana Regulation Sections: 17.29.010 Definitions 17.29.020 Prohibition 17.29.030 Public Nuisance Sec. 17.29.010 Definitions. As used in this chapter: Cannabis, or Marijuana, shall have the same definition as Health and Safety Code section 11018. Commercial Cannabis Activity means cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of Medical Cannabis or a Medical Cannabis product, except as set forth in Business and Professions Code Section 19319, related to Qualifying Patients and Primary Caregivers. Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Cannabis. Delivery shall include the use by a Dispensary of any technology platform owned and controlled by the Dispensary, or independently licensed by the State under the Medical Marijuana Regulation and Safety Act, which enables Persons, Qualified Patients, and/or Primary Caregivers to arrange for or facilitate the commercial transfer of Medical Cannabis or. Medical Cannabis products. Dispensary means a facility where Medical Cannabis, Medical Cannabis products, or devices for the use of Medical Cannabis or Medical Cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that Delivers Medical Cannabis and Medical Cannabis products as part of a retail sale. Medical Cannabis means a product containing Cannabis, including but not limited to, concentrates and extractions, intended to be sold by Medical Cannabis patients in California pursuant to Health and Safety Code section 11362.5 and 11362.7. Resolution No. 2016-01 6 Medical Marijuana Regulation and Safety Act shall refer to Chapter 3.5 of the California Business and Professions Code, commencing with section 19300, et seq. Mobile Marijuana Dispensaries means any Dispensary, clinic, cooperative, association, club, business or group which transports or Delivers, or arranges the transportation or Delivery, of Medical Cannabis to a Person. Person means any individual, firm, corporation, association, club, society, or other organization. The term Person shall include any owner, manager, proprietor, employee, volunteer, or salesperson. Primary Caregiver shall have the same definition as Health and Safety Code section 11362.7, as may be amended. Qualified Patient shall have the same definition as Health and Safety Code section 3362.7, as may be amended, and which means a Person who is entitled to the protections of Health and Safety Code section 11362.5. For the purposes of this Article, Qualified Patient shall include a Person with an identification card, as that term is defined by Health and Safety Code section 11362.7 et seq. Sec. 17.29.020 Prohibition. A. Commercial Cannabis Activities of all types are expressly prohibited in all zones within the City's jurisdictional limits. No Person shall establish, operate, conduct, or allow a Commercial Cannabis Activity anywhere within the City. B. Mobile Marijuana Dispensaries are prohibited in all zones within the City's jurisdictional limits. No Person shall: 1. Locate, operate, own, suffer, allow to be operated or abide, abet or assist in the operation of any Mobile Marijuana Dispensary within the City; 2. Deliver Marijuana 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; or 3. Deliver any Medical Cannabis product, including, but not limited to tinctures, baked goods, or other consumable products, 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. C. This section is meant to prohibit all activities for which a State license is required. Accordingly, the City shall not issue any permit, license or other entitlement for any activity for which a State license is required under the Medical Marijuana Regulation and Safety Act. D. Marijuana cultivation by any person or entity, including clinics, collectives, cooperatives and dispensaries, is prohibited in all zones within the City's jurisdictional limits. No permit, whether conditional or otherwise, shall be issued for the establishment of such activity. No Person, including a Qualified Patient or Primary Caregiver, shall Cultivate any amount of Cannabis in the City, even for medicinal purposes, except where the City is preempted by federal or state law from enacting a prohibition on such activity. Sec. 17.29.030 Public Nuisance. Resolution No. 2016-01 7 Any use or condition caused, or permitted to exist, in violation of any provision of this Article shall be, and hereby is declared to be, a public nuisance and may be summarily abated by the City pursuant to Code of Civil Procedure section 731 or any other remedy available to the City. Resolution No. 2016-01 8 Engage your community - connect to news, e and information you care about. View more information... Sign In Search our site 1'�VLL11N Vr n1LLIJ CALIFORNIA rg City Council City Council Agendas Committee on Trees & Views Agendas Planning Commission Agendas Traffic Commission Agendas NOTIFY ME EMERGENCY NOTIFICATION CONTACT US City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 Ph. (310) 377-1521 Fax (310) 377-7288 7:30 am - 5:00 pm Mon -Fri You are here: Home > Notify Me Notify Me 1. Type your email address in the box and select Sign In. 2 If you want to receive text messages enter your phone number and select Save. 3 To subscribe or unsubscribe click ° and/or ° next to the lists to which you wish to subscribe/unsubscribe. Available Lists « Previous 1 Next » Subscribe to this list 1 See all lists Sender Name: Sent By: Send Date: Email Subject: Pending Ordinances Ewa Nikodem 1/15/2016 3:45:00 PM Proposed Code Amendments ♦ Formatted HTML message On Tuesday, January 19, 2016 at 6:30 p.m., during its regular meeting, the Planning Commission will hold a public hearing regarding proposed amendments to Title 17 of the Rolling Hills Municipal Code to prohibit the delivery, cultivation and dispensing of medical marijuana within the City of Rolling Hills. The meeting agenda, staff report and proposed Resolution No. 2016-01 can now be found at Rolling-Hills.orq This complimentary message is being sent to opt -in subscribers who might be interested in its content. If you do not wish to continue receiving these messages, please accept our apologies, and unsubscribe by visiting our website at: htto://www.rolling-hills.ora/list.aso?mode=del Please note, we will not sell or give your e-mail address to any organization without your explicit permission. ♦ Plain text message On Tuesday, January 19, 2016 at 6:30 PM, during its regular meeting, the Planning Commission will hold a public hearing regarding proposed amendments to Title 17 of the Rolling Hills Municipal Code to prohibit the delivery, cultivation and dispensing of medical marijuana within the City of Rolling Hills. The meeting agenda, staff report and proposed Resolution No. 2016-01 can now be found at Rolling-Hills.org [http://rolling- hills.org/index.aspx?nid=140] This complimentary message is being sent to opt -in subscribers who might be interested in its content. If you do not wish to continue receiving these messages, please accept our apologies, and unsubscribe by visiting our website at: http://www.rolling-hills.org/list.asp?mode=del [http://www.rolling-hills.org/list.asp?mode=del] Please note, we will not sell or give your e-mail address to any organization without your explicit permission. ♦ SMS message The 1/19 Planning Commission agenda & staff report pertaining to proposed amendments to the RHMC can now be found @ http://rolling-hills.orgfindex.aspx?nid=140 Your e-mail address will be kept confidential and it will not be sold, disclosed to others, or used for unsolicited mass mailings (spam). Please remember to set your spam blocker to allow mail from listserv@civicplus.com. A Back to too City oMoiing �ti��� �ecv��etter offfice: (310) 377-1521 . fax: (310) 377-7288 www.Rolling-Hills.org CITY COUNCIL James Black, M.D. Bea Dieringer Leah Mirsch Jeff Pieper Patrick Wilson CITY MANAGER Raymond R. Cruz January 6, 2016 Issue No. 16-01 City Council Public Hearing: View Ordinance Amendments and Consideration of Administrative Regulations Interpreting Measure 8 On Monday, January 11, 2016 at 7:30 p.m., during its regular meeting, the City Council will hold a public hearing to discuss amendments to the City's View Preservation Ordinance as well as discuss Administrative Regulations interpreting Measure B relating to View Preservation, as recommended by the Planning Commission. The staff reports pertaining to the View Ordinance amendments and the proposed Administrative Regulations will be available at City Hall and on the City's web site at www.rolling-hills.org on Friday, January 8, 2016. Christmas Tree Recycling Program * To participate in the Christmas tree recycling program, place your tree, with decorations and stands removed, next to your greenwaste by January 17-. Republic Services will pick it up and transport it to a facility where it will be used for mulch, compost, and landfill cover. Do not place trees in plastic bags. Flocked trees and trees coated with fire retardant will be accepted. Please cut trees over six feet in half. For questions, please contact Republic Services Customer Service Dept. at 1-800-299-4898. Remove Dead Vegetation The City Council in November passed a new Fire Fuel Management Ordinance in order to assist in managing dangerous fire fuels in the City. Due to the drought, there is more dead vegetation (trees, shrubs and plants) than ever posing a threat to our community. The Los Angeles County Fire Department regulates the first 200 feet from structures in order to establish a fire fighting defensible space. The Ordinance requires the removal of the dead plants on the remainder of your property to help keep our community safe. No Overnight Parking Allowed Ei The Rolling Hills Traffic Commission would like to remind residents and visitors that there is no overnight parking allowed along any city roadways or in cul-de-sacs. Also, when parking along the roadway, please be sure that the vehicle does not block any equestrian trails, fire hydrants or driveways and that the vehicle is completely off of the roadway so as not to impede equestrian or vehicle traffic. Caballeros Luncheon and Board Installation � •. Sunday, February 7, 2016 11:00 a.m. Red Onion - 736 Silver Spur Road $20 / person RSVP by 2/5 to Clint at 310-541-3062 or clint.patterson@gmail.com ROLLING HILLS CRIMES REPORTED For the time period December 6-26, 2015 Dec. 18-22 — Maverick Lane — Residential Burglary Wishing you a Happy New Year! Rolling Hills City Council and Staff wish all residents a happy, safe and prosperous 2016! Please note, City Hall will be closed on Monday, January 18, 2016 in observance of the Martin Luther King, Jr. Holiday. PVPUSD Solar Energy Project At the November 18, 2015 Board of Education meeting, the Board voted to enter into a Purchase Power Agreement with PFMG Solar to install solar energy systems at most of the District's school campuses. The cost savings estimate for the District is $6.7 Million dollars over the term of the 25 -year agreement. As a part of its community outreach program, the School District will be hosting a series of public information meetings regarding the project. For meeting dates and additional information about the project, please visit the PVPUSD web site at www.pvpusd.net. Planning Commission Public Hearing: Zoning Code Amendment The Planning Commission will hold a public hearing regarding a Zoning Code Amendment to expressly ban cultivation, delivery and dispensation for commercial purposes of medical marijuana in the City. Recently enacted State legislation provides the City with greater authority for regulating medical marijuana activities; but has added permitted new businesses such as "mobile dispensaries". The legislation provides that such deliveries and other activities must be expressly prohibited in order to be effectively regulated by the City. RHCA ANNOUNCEMENTS Road Use Fee Change Effective January 1, 2016 Starting on January 1, 2016, RHCA will no longer be charging for a road use fee at the gates for workers entering the community. Instead, a road use fee will be included as a surcharge on open and new RHCA building permits. A letter was mailed to all residents the week of 12/27 detailing this change. The road use fee was charged at the gate through 12/31/15. Any balances on gate credits will be refunded to residents in January. Please contact the RHCA office if you have any questions at 310-544-6222 or info@rhca.net Save the Date....RHCA Annual Meeting The Rolling Hills Community Association Annual Meeting will be held at 7:30 p.m. on Wednesday, January 20, 2016 at the South Coast Botanic Garden, 26300 Crenshaw Blvd., Rolling Hills Estates. UPCOMING CITY MEETINGS City Council Meetings 01/11/16 and 01/25/16 at 7:30 p.m. Planning Commission Meeting 1/19/16 at 6:30 p.m. Traffic Commission Meeting 01/28/16 at 8:30 a.m. AGENDA CITY COUNCIL CITY OF ROLLING HILLS REGULAR MEETING MONDAY, JANUARY 11, 2016 7:30 P.M. THIS AGENDA MAY NOT BE COMPLETE. THE FINAL AGENDA WILL BE POSTED AT CITY HALL 72 HOURS BEFORE THE CITY COUNCIL MEETING. THE FINAL AGENDA IS ALSO POSTED ON THE CITY OF ROLLING HILLS WEBSITE AT WWW. ROLLING-HILLS.ORG. 1. CALL TO ORDER 2. ROLL CALL 3. CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent Calendar causing it to be considered under Council Actions. A. Minutes — (1) Regular Meeting of November 9, 2015 and (2) Regular Meeting of November 23, 2015. RECOMMENDATION: Approve as presented. B. Payment of Bills. RECOMMENDATION: Approve as presented. C. Consideration of the City Council Approved Vendor List. RECOMMENDATION: Approve as presented. D. Consideration of Fiscal Year 2016/2017 Budget Preparation Calendar. RECOMMENDATION: Approve as presented. E. City Council Finance/Budget/Audit Committee meeting notes of December 17, 2015. RECOMMENDATION: Receive and file. 4. COMMISSION ITEMS A. RESOLUTION NO. 2015-23. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS GRANTING APPROVAL OF A SITE PLAN REVIEW FOR AN ADDITION AND CONSTRUCTION OF A POOL EQUIPMENT ENCLOSURE ON A PROPERTY WITH RESTRICTED DEVELOPMENT CONDITION; GRADING FOR A GUEST PARKING AREA AND VARIANCES TO LOCATE THE EQUIPMENT ENCLOSURE IN THE FRONT YARD AREA OF THE SITE, TO EXCEED THE MAXIMUM PERMITTED LOT DISTURBANCE, AND TO LOCATE A PORTION OF A 3' HIGH RETAINING WALL WITHIN THE SIDE YARD SETBACK AT 13 OUTRIDER ROAD, (LOT 94-A-EF), ROLLING HILLS, CA, (HANG JA Y00). B. RESOLUTION NO. 2015-25. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS GRANTING A CONDITIONAL USE PERMIT AND A SITE PLAN REVIEW TO FILL IN AND CONVERT AN EXISTING CABANA TO A GUEST HOUSE AND TO CONSTRUCT A RAISED DECK AT 7 CREST ROAD EAST IN ZONING CASE NO. 891 (LOT 3. -FT), ROLLING HILLS, CA. (DOTY). 5. PUBLIC HEARINGS A. AT THE REQUEST OF THE APPLICANT, THE PUBLIC HEARING IN ZONING CASE NO. 880 WILL BE CONTINUED TO A DATE TO BE SELECTED AT THIS MEETING. ZONING CASE NO. 880 - REVISED. REQUEST FOR A SITE PLAN REVIEW AND VARIANCES FOR A 280 SQUARE FOOT ADDITION OF WHICH 41 SQUARE FEET WOULD ENCROACH UP TO 5.2' INTO THE SIDE YARD SETBACK, AND THE ROOF OVERHANG WOULD ENCROACH 3.8' INTO THE SIDE YARD SETBACK BEYOND THE MAXIMUM OF 5' ALLOWED, AND FOR A RETAINING WALL THAT WOULD BE 20' LONG, BETWEEN 3' TO 5' HIGH AND WHICH WOULD NOT AVERAGE OUT TO 2.5' IN HEIGHT TO ENCROACH 10' INTO THE SIDE YARD SETBACK IN ZONING CASE NO. 880 - REVISED, AT 15 PORTUGUESE BEND ROAD (LOT 78- RH), ROLLING HILLS, CA, (HASSOLDT). B. AT THE REQUEST OF THE PARTIES, THE PUBLIC HEARING ON THE APPEALS OF COMMITTEE ON TREES AND VIEWS RESOLUTION NO. 2015-03-CTV WILL BE CONTINUED TO A DATE TO BE SELECTED AT THIS MEETING. CONSIDERATION OF TWO APPEALS OF COMMITTEE ON TREES AND VIEWS RESOLUTION NO. 2015-03-CTV SETTING FORTH FINDINGS RELATING TO TRIMMING OF TREES AT 15 PORTUGUESE BEND ROAD DUE TO VIEW IMPAIRMENT FROM 18 PORTUGUESE BEND ROAD. C. (1.) CONSIDERATION OF AN ORDINANCE NO. 346. AN ORDINANCE OF THE CITY OF ROLLING HILLS AMENDING TITLE 17 OF THE ROLLING HILLS MUNICIPAL CODE RELATING TO VIEW PRESERVATION, IN ZONING CASE NO. 881 AND ZONING CODE AMENDMENT NO. 2015-03. THE PROJECT HAS BEEN DETERMINED TO BE CATEGORICALLY EXEMPT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). AND (2.) CONSIDERATION OF RESOLUTION NO. 1182 ADOPTING ADMINISTRATIVE REGULATIONS INTERPRETING MEASURE B RELATING TO VIEW PRESERVATION. 6. OLD BUSINESS A. PERSONAL APPEARANCE BY THE APPLICANTS IN ZONING CASE NO. 869, SUBDIVISION NO. 94, VESTING TENTATIVE PARCEL MAP NO. 72775 TO DISCUSS CITY COUNCIL REQUIREMENT FOR A THIRD PARTY CONSULTANT HYDROLOGY STUDY AND PEER REVIEW OF THE EXISTING GEOTECHNICAL REPORTS (HYNES). 7. NEW BUSINESS A. CONSIDERATION OF THE 2014-15 ANNUAL FINANCIAL AUDIT B. DISCUSSION TO APPROPRIATE FUNDS IN CONCURRENCE WITH THE PERCENTAGES IDENTIFIED WITHIN THE PENINSULA REGIONAL LAW ENFORCEMENT CONTRACT IN ORDER TO ADD ONE SURVEILLANCE AND APPREHENSION TEAM (SAT) DETECTIVE. 8. OPEN AGENDA - APPROXIMATELY 8:00 P.M. - PUBLIC COMMENT WELCOME 9. MATTERS FROM THE CITY COUNCIL AND MEETING ATTENDANCE REPORTS A. DISCUSSION REGARDING MOVING THE START TIME OF CITY COUNCIL MEETINGS TO 6:30 P.M. 10. MATTERS FROM STAFF A. RESIDENTIAL BURGLARY UPDATE. (ORAL REPORT) 11. CLOSED SESSION NONE. 12. ADJOURNMENT Documents pertaining to each agenda item are available for review in the City Clerk's office on after 2pm on the Friday before the meeting or at the meeting at which the item will be considered. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the Deputy City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. t'L z06 n,ti,o/1/V, VW— ..7/ ?/ Pnodl"8199 f6"1"c `7/''r G�/� oad °'I V Subject: Time -Sensitive Communication RE: Marijuana Policy. Date: Wednesday, November 2, 2016 2:27 PM From: LA Country RAM Workgroup <lacountyram@gmail.com> To: LA County RAM <lacountyram@gmail.com> Dear City Clerk, Rethinking Access to Marijuana (RAM) is a collection of public health agencies funded by the LA County Department of Public Health and is engaged in a Community Partnership with the UCLA Fielding School of Public Health. (We ask that you distribute this document to all policymakers in your city) https://drive.google.com/file/d/ OB5rHO4JDkeMGdmSlazFFYWhHY2M/view?usp=sharing <https:%/drive.google.com/file/d/0B5rHO4JDkeMGdm51azFFYWhHY2M/view? usp=sharing> As public health advocates, we are concerned by the harm associated with marijuana use, particularly as it relates to youth. Youth are vulnerable to marijuana's societal and physiological impacts; the data show it can dramatically impact cognitive development and academic performance. Comprehensive regulation is a crucial strategy to mitigate the negative impacts of marijuana on youth. The RAM Policy Menu provides important information for local legislators concerned with enacting smart marijuana regulation. New medical marijuana laws were established in January 2016, but many areas of regulation are still under development. Local jurisdictions still hold the right and responsibility to define the presence of medical marijuana in their communities. With the additional possibility that legal recreational marijuana use will become a reality in the near future, officials must act now to enact policies that minimize youth exposure. RAM is not for or against the legalization of marijuana for recreational use. We are advocating for solutions that protect youth. For more information about RAM, visit our website at www.lacountyram.org <http://www.lacountyram.org/> . Best, The Members of Rethinking Access to Marijuana Link to Policy Menu: https://drive.google.com/file/d/OB5rHO4JDkeMGdm51azFFYWhHY2M/view?usp=sharing Re: Marijuana Marijuana Regulation and Enforcement Priorities for Cities Changes in marijuana policy are gaining momentum throughout Los Angeles County. Yet, little is known about the impact these shifts will have on health systems, prevention and treatment of substance abuse, social outcomes such as education and professional achievement, and other disease prevalence. Proliferation of marijuana outlets, whether recreational or medical, has the potential for a serious negative impact on the health and safety of communities, and youth in particular. As public health advocates, we are concerned with preventing health harm associated with marijuana use. The chief priority for protecting the health of LA County residents is preventing use of marijuana during the important developmental periods of childhood and adolescence. Marijuana is particularly risky for young people to use because it can interfere with brain development' and has been shown to cause long- term deficits in cognitive function when use begins in adolescence'. Comprehensive regulation is a crucial strategy for city leaders to prevent negative impacts from marijuana on youth. As of January 2016, California has new medical marijuana regulations, yet many areas of regulation are still under development. There is also the possibility that legal recreational marijuana use will become a reality in the near future. How can city residents and officials act now to ensure that local policies protect youth and preserve the character of our communities? This document reviews proven strategies to limit youth access to marijuana by regulating medical marijuana dispensaries, personal use cultivation, commercial cultivation, and delivery services; it also outlines the potential impact of various policy options. The following matrix includes important information for local legislators concerned with enacting smart marijuana regulation that adequately protects youth in our communities. Key Domains for Regulation Storefront Marijuana Businesses Restricting and carefully monitoring licenses and licensees: Licensing provisions that are actively enforced through regular random compliance checks in which violators, such as those that sell to minors, are subject to meaningful penalties (including license suspension and revocation) create a culture of compliance among marijuana licensees. Restricting density of marijuana outlets: Decades of research on alcohol and tobacco use demonstrate the need for strong controls on the density of businesses, and research shows the physical availability of medical marijuana dispensaries is similarly related to the prevalence and frequency of marijuana use (Ammerman et al., 2015). Density restrictions on the number of businesses that.can locate in a given.area.can.— — prevent uneven dustering of marijuana outlets in our neighborhoods. Restricting where marijuana storefronts can be located: Marijuana -related businesses should not be located near areas youth frequent such as schools, parks, and playgrounds. Similarly, locating marijuana businesses in mainstream shopping districts can increase perceptions among youth that marijuana is nomlal and socially acceptable, which has been shown to have strong associations with underage marijuana use (Ashbridge et al., 2016). Personal Use Cultivation Requiring licensing and inspections for cultivation: Current state laws regulating personal use cultivation lack basic requirements for security and preventing youth access. Ideally, property proposed as a site for personal use marijuana cultivation should be subject to an inspection and approval process, taking into account ways children may he exposed to the crop and other concerns, such as security from theft, visibility, water/electricity usage, the potential for nuisance from drifting odors, and the rights of property owners. Commercial Cultivation Restricting where marijuana storefronts can be located: The current State law is more comprehensive in regulations on commercial cultivation. However, it falls to city leaders to minimize the impacts of commercial cultivation on youth by restricting grow operations to non-residential zones and enforcing state regulations intended to prevent diversion of marijuana products to the black market. 1= (Volkow et al., 2014) 2 = (Meier et al., 2015) i.Storefront ' ! Marijuana' .10Bustf_e5sseS►�` 0-- ALLOW -► FACTORS 50 CONSIDER • Density • Visibility • Business practices • On -site use • Types of products • Potency • Marketing • Security requirements • Drugged driving DON'T • Comprehensiveness ALLOW • Enforceability WHAT THE DATA SHOW • Limiting density limits youth access and neighborhood Impacts (Freisthler& Gruenwald, 2014). • Limiting visibility of outlets and advertising limits perceptions of social norms favoring marijuana use (D'Amico, Miles&Tucker, 2015). • Edibles present a higher risk of overdose and unintentional consumption by small children (McCoun & Mello, 2015). • Strict security protocols limit theft and subsequent diversion to the black market (Subritsky, Pettigrew, & lenton, 2016). • States that prohibit retail medical marijuana storefront experience lower increases in NC potency and prevalence of use (Pacula et al., 2015) even if they allow marijuana cultivation for personal use. BEST PRACTICES YOUTH IMPACTS • Limit the quantity of storefront marijuana businesses and prevent outlets from clustering in specific neighborhoods. • Restrict location of marijuana outlets to low visibility areas far from places youth frequent • Restrict signage and advertising to minimize visibility to youth. • Limit hours of operation. • Cap THC concentrations or allow only low THC/high CBD products. • Require child safe packaging and clear labeling for edibles. • Prohibit on -site use. • Implement security requirements to prevent robbery and burglary. • Ensure the ordinance addresses all relevant marijuana activities, including cultivation and delivery (see sections below). • Ensure the ordinance is worded to apply to recreational marijuana should that become legal. • Require conditional use permits contingent on passing an annual compliance review. • Impose an annual renewal fee for conditional use permits to fund compliance inspections. • Implement high visibility enforcement like drugged driving checkpoints. • Take quick legal action against unlicensed or non -compliant outlets. • Fine and hold accountable building owners for renting to an unlicensed marijuana outlet • Use a portion of licensing fees to fund random inspections and responsible retailer training. • Implement and locally publicize a Minor Decoy Program to evaluate compliance with age restrictions on marijuana sales. • Educate law enforcement officers about the local policy and their role in enforcement. • Educate residents about how to report unlicensed or non -compliant marijuana outlets. s, POLICY DECISION Personal Use Cultivation ALLOW —► FACTORS TO CONSIDER • Youth exposure • Visibility • Resource Use • Nuisance complaints • Burglary DON'T • Comprehensiveness ALLOW • Enforceability WHAT THE DATA SHOW • State law allows every medical marijuana patient to grow up to 100 square feet of plants (and up to 500 square feet if they are a personal caregiver) (CA Health and Safety Code 11362.769). • State regulations don't include any requirements to keep personal use cultivation Indoors or secured from kids or non -patients. • Marijuana is a water and energy -intensive crop (Bauer et al., 2015; Mills, 2012). • A 2016 ballot measure to legalize recreational marijuana use would rescind the right of cities and counties to enact full bans on personal use cultivation (Prop 64 website). BEST PRACTICES TO MINIMIZE YOUTH IMPACTS • Ensure cultivation sites are not visible or accessible by youth. • Require a cultivation permit with an annual fee to fund enforcement • Require an inspection of proposed cultivation sites for safety and youth exposure prior to issuing permits. • Enact annual site inspections to evaluate concerns like drifting odors, water and electricity use, and security from theft. • Distinguish between personal use cultivation and commercial cultivation in ordinance text. • Ensure personal use cultivation ordinances) will apply to recreational marijuana if that should become legal. HOW TO ENFORCE • Dedicate local enforcement resources to site inspections for permit approvals and on -going annual inspections. • Establish a procedure to address nuisance complaints and disputes between neighbors. • Require written approval from building owner prior to granting permits for cultivation in rental units, to minimize landlord/tenant disputes. • Educate residents and local law enforcement about the local policy on personal use cultivation. • Establish a procedure for residents to report un-permitted cultivation sites. Commercial Cultivation ALLOW —0- • Visibility to Youth • Environmental Impact • Resource Use (Water/Energy Demand) • Indoor versus Outdoor Cultivation • Zoning Restrictions DON'T --► • Enforceability ALLOW • Marijuana is a water and energy -intensive crop (Bauer et al., 2015; Mills, 2012). • Pesticides used in marijuana cultivation represent a health risk for youth and families (Carah et al., 2015). • Data is limited, but outdoor grows have a greater potential for burglary/other crimes (CA Narcotks Officers Association, 2016). Legislators may need to revisit bans as state regulations on commerdal cultivation develop. • Restrict commercial cultivation to non- residential areas to reduce youth exposure/ visibility. • Restrict density. • Look to state lawmakers. Environmental standards to be determined at a state level. • Distinguish between personal use cultivation and commercial cultivation in ordinance text. • Ensure cultivation ordinances will apply to recreational marijuana should that become legal. • Look to the CDFA. The Department of Food and Agriculture is developing regulations and licensing requirements for cultivators. • Seek grant funding. The BMCR will establish a grant program for local jurisdictions to assist with regulation and enforcement (CA Business and Professions Code 19351). • Establish a procedure for residents to report suspected commercial cultivation sites or any violation of the law. • Educate local law enforcement and residents on IocaUstate policy for commercial cultivation. Delivery Services ALLOW —► • Restrict to dispensaries licensed in your jurisdiction. Or, • Restrict to registered collectives delivering to handicapped customers. DON'T • Enforceability ALLOW • Marijuana delivery services have been found to circumvent community efforts to regulate marijuana (Freisthler& Gruenwald, 2014). • Bans on marijuana delivery within city limits may be challenging to enforce. • Prohibit delivery to schools and colleges attended by youth under 21. • Rescind conditional use permits of storefront marijuana businesses for deliveries to minors or in quantities that exceed state limits. • Implement regulations that prohibit sales to minors or restrict quantities (may be nearly impossible to enforce for delivery services). • Establish a procedure for residents to report violations of age restrictions or limits on quantity. • Use a Minor Decoy Program to evaluate delivery services' compliance with age restrictions or limits on quantity. • Enact traffic stops for suspected deliveries within city limits. • Issue citations for verified deliveries to addresses within city limits. 4} Delivery Services Banning or limiting delivery services: Marijuana delivery services have been found to circumvent community efforts to regulate marijuana (Freisthler & Gruenwald, 2014) and present serious concerns for monitoring and enforcement of laws intended to prevent youth access and diversion to the black market. Accountability The current State law is unclear about what enforcement resources will be made available to local jurisdictions to monitor and enforce medical marijuana regulations. As such, it falls to cities to define how they will monitor. and enforce compliance on a local level. High Visibility Enforcement Highly visible enforcement is a deterrent to future violations of medical marijuana regulations. Enforcement techniques could include drugged driving checkpoints and publicizing use of a Minor Decoy Program that evaluates compliance with age restrictions. Community Involvement To date, many local jurisdictions have relied heavily on reports and inquiries from residents to identify non -compliant or unlicensed marijuana businesses. Training Local law enforcement can be trained on local and state regulations regarding medical marijuana, on how to recognize and police drugged driving, and on how to evaluate security standards at commercial cultivation sites and medical marijuana storefronts. Phone Number: (323) 815-7726 Email: LACountyRAM@gmail.com (send inquires and/or join our mailing list) LAmmerman, S., Ryan, S., Adelman, W. P., Levy, S., Ammerman, S. D., Gonzalez, P. K., ... & Alderman, E. M. (2015). The impact of marijuana polities on youth: clinical, research, and legal update. Pediatrics, 135(3), e769 -e785. Asbridge, M., Valleriani, J., Kwok, J., & Erickson, P. G. (2016). Normalization and denormalization in different legal contexts: Comparing cannabis and tobacco. Drugs: Education, Prevention and Policy, 23(3), 212-223. Bauer, 5., Olson, J., Cockrill, A., van Hattem, M., Miller, L, Tauzer, M., & leppig, G. (2015). Impacts of surface water diversions for marijuana cultivation on aquatic habitat in four northwestern Califomia watersheds. PIoS one, 10(3), e0120016. CA Narcotics Officers Association, 2016. Personal communication with Sergeant Glen Walsh, April 2016. Carah, J. K, Howard, J. K., Thompson, S. E, Gianotti, A. G.S., Bauer, S. 0., Carlson, S. M., ... & Knight, C. A. (2015). High time for conservation: adding the environment to the debate on marijuana liberalization. BioScience, 65(8), 822-829. D'Amim, E. J., Miles, J. N., & Tucker, J. 5. (2015). Gateway to curiosity. Medical marijuana ads and intention and use during middle school. Psychology of Addictive Behaviors, 29(3), 613. Freisthler, B., & Gruenewald, P.J. (2014). Examining the relationship between the physical availability of medical marijuana and marijuana use across fifty California sties. Drug and alcohol dependence,143, 244250. Pacula, R. L., Powell, D., Heaton, P., & Sevigny, E L. (2015). Assessing the effects of medical marijuana laws on marijuana use: the devil is in the details. Journal of Policy Analysis and Management, 34(1), 7-31. MacCoun, R. J., & Mello, M. M. (2015). Half -baked —the retail promotion of marijuana edibles. New England Journal of Medicine, 372(11), 989-991. Meier, M. H., Caspi, A., Ambler, A., Harrington, H., Houts, R., Keefe, R. S., ... & Moffitt, T. E. (2012). Persistent cannabis users show neuropsychological decline from childhood to midlife. Proceedings of the National Academy of Sciences, 109(40), E2657 -E2664. Mills, E. (2012). The carbon footprint of indoor Cannabis production. Energy Policy, 46, 58-67. Subritzky, T., Pettigrew, S., & Lenton, S. (2016). Issues in the implementation and evolution of the commercial recreational cannabis market in Colorado. International Journal of Drug Policy, 27,1-12. Volkow, N. D., Baler, R. D., Compton, W. M., & Weiss, S. R. (2014). Adverse health effects of marijuana use. New England Journal of Medicine, 370(23), 2219-2227. Contact RAM o Website: LACountyRAM.org Facebook: www.facebook.com/LACountyRAM/ Twitter: https://twitter.com/LACountyRAM Made possible through funds from SAP( the messages, views, or opinions made by any of the publications, speakers, or staff do not reflect the ofhdal policy or position of any LA County agency, induding SAPC. Wednesday, March 23, 2016 10:14:49 AM Pacific Daylight Time Subject: [GRAYMAIL] RE: RE: RE: FW: Medical Marijuana Res/staff rprt Date: Wednesday, March 23, 2016 10:11:13 AM Pacific Daylight Time From: Natalie C. Karpeles <NKarpeles@localgovlaw.com> To: Yolanta Schwartz <ys@cityofrh.net> Hi Yolanta, Off the top of my head, I know that Malibu is considering allowing personal cultivation and West Hollywood currently allows for personal and limited commercial cultivation. The City of Los Angeles also allows for limited personal cultivation by three -patient collectives (totaling 18 mature plants). Rolling Hills is in that many of the residents own large tracts of land - other local Southern California cities are just not similarly situated. With that said, many Northern/Central California cities - where there is an abundance of open space (i.e., Berkeley, Bishop, Chico, Concord, Lodi, Merced, Oakland, Redding, and San Francisco) allow for personal cultivation with various restrictions, such as: - Limiting cultivation to a certain number of plants - Limiting cultivation to a certain number of square feet - Prohibiting outdoor cultivation entirely - Prohibiting visible outdoor cultivation - Prohibiting cultivation anywhere other than an enclosed, non -visible, detached outdoor space - Prohibiting personal cultivation if someone under the age of 18 resides at the residence - Prohibiting personal cultivation in a rental unit without owner consent/permission - Setting distancing requirements for outdoor personal cultivation with regard to its proximity to schools, parks and churches * Note that Riverside and San Diego also allow for limited personal cultivation as well. I hope that helps! Let me know if there is anything else that you need. - Natalie JENKINS & HOGIN, LLP 1230 Rosecrans Avenue, Suite 110 Manhattan Beach, California 90266 T: (310) 643-8448 F: (310) 643-8441 This is a transmission from the Law Firm of Jenkins & Hogin, LLP. The Information contained in this email is confidential and may be protected by the attorney -client and/or attorney work product privileges. This information is intended solely for the use of the individual or entity to whom it is addressed. Original Message From: Yolanta Schwartz [mailto:vsPcityofrh.net] Sent: Tuesday, March 22, 2016 2:28 PM To: Natalie C. Karpeles Subject: Re: [GRAYMAIL] RE: RE: FW: Medical Marijuana Res/staff rprt Oy, one more question Do you know of any city, preferably local that adopted an ordinance that allows cultivation; This is what I have; but none allow cultivation... PVE - adopted a total ban (cultivation, dispensaries and delivery) prior to the March 1, 2016 dead line RHE - adopted a total ban on cultivation and dispensaries; and allows limited (similar to ours) delivery Torrance - Page 1 of 6 Tuesday, March 22, 2016 1:08:20 PM Pacific Daylight Time Subject: [GRAYMAIL] RE: FW: Medical Marijuana Res/staff rprt Date: Tuesday, March 22, 2016 1:01:35 PM Pacific Daylight Time From: Natalie C. Karpeles <NKarpeles@localgovlaw.com> To: Yolanta Schwartz <ys@cityofrh.net> As of March 7, 2016, eleven marijuana initiatives have been approved for circulation: eight of which would legalize marijuana under state law; five would place the power to regulate and license the marijuana industry into the state's hands; and nine of which would limit local governments' ability to regulate marijuana (i.e., regulations limiting the licensing and number of marijuana businesses, imposing local zoning requirements for marijuana land uses, and addressing the cultivation, transportation, possession, or consumption of marijuana, among other things). Although many marijuana legislation initiatives were proposed and circulated, the California Control, Regulate and Tax Adult Use of Marijuana Initiative (aka "The Adult Use of Marijuana Initiative/Act") is a clear leader and the most likely to reach the ballot in November 2016. The initiative's proponents received financial backing in the amount of $2.25 million dollars, including $1 million from Napster founder and former Facebook president Sean Parker, and $500,000 from the Drug Policy Action. A. California Control, Regulate and Tax Use of Marijuana Initiative. This is an initiated state statute that would legalize marijuana and hemp under state law. The initiative was also designed to establish state agencies to oversee the licensing and regulation of the marijuana industry. Moreover, it would enact a sales and cultivation tax, with exceptions for qualifying medical marijuana sales and cultivation. The initiative was also designed to prevent licenses for corporate or large-scale marijuana businesses for five years in order to deter the "unreasonable restraints on competition by creation or maintenance of unlawful monopoly power." The initiative would also establish packing, labeling, advertising, and marketing standards and restrictions for marijuana products; including prohibitions on marketing and advertising marijuana to minors. Importantly, this initiative would authorize resentencing and destruction of criminal records for prior marijuana convictions. Other provisions relate to the rights of employers to screen for marijuana use, driving under the influence of marijuana, and marijuana business locations. Supporters of this initiative include the Marijuana Policy Project of California; the California State NAACP; Drug Policy Action; New Approach PAC; Californians for Sensible Reform; National Organization for the Reform of Marijuana Laws (NORML); Sean Parker; California Lieutenant Governor Gavin Newsom; and the California Medical Association. The University of California, San Francisco, conducted an analysis of the effects of legalization according to this initiative. The study concluded that there were social and economic benefits to legalization, but that the negative effects on public health outweighed the benefits. On February 4, 2016, petitioners reached the 25 percent mark in their signature gathering efforts, collecting more than 91,470 signatures. Supporters have until July 5, 2016 to collect the remaining 274,410 signatures required for qualification. Original Message From: Yolanta Schwartz [mailto:vsPcityofrh.net] Sent: Tuesday, March 22, 2016 1:00 PM To: Natalie C. Karpeles Subject: Re: [GRAYMAIL] FW: Medical Marijuana Res/staff rprt Thank you. Also, I heard from other planners that there is some sort of a Measure going to be placed on the Ballot in Page 1 of 3 November regarding this topic. Could you enlighten me. Thanks Yolanta Schwartz Planning Director City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills, CA 90274 310 377-1521 F: 310-377-7288 This is a transmission from the City of Rolling Hills. The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email and delete the message. WARNING: Computer viruses can be transmitted by e-mail. The recipient should check this e-mail and any attachments for the presence of viruses. The CITY OF ROLLING HILLS accepts no liability for any damage caused by any virus transmitted by this e-mail. On 3/22/16 12:41 PM, "Natalie C. Karpeles" <NKaroeles(localgovlaw.com> wrote: Here are the three bills with the proposed language changes for the Health and Safety Code; if you need anything else, let me know. Original Message From: Natalie C. Karpeles Sent: Tuesday, January 05, 2016 11:11 AM To: 'Yolanta Schwartz' Subject: RE: Medical Marijuana Res/staff rprt How about this? If it is still unclear, let me know. Commercial medical marijuana activities, as well as cultivation for personal medical use as allowed by the Compassionate Use Act and the Medical Marijuana Program, can adversely affect the health, safety, and well-being of City residents. Further, as recognized by the Attorney General's August 2008 Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use, marijuana cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that surrounding homes or businesses may be negatively impacted by nuisance activity such as loitering or crime. While the Compassionate Use Act and Medical Marijuana Program provide limited immunity from specified State marijuana laws, this immunity does not grant any land use rights or create the right to maintain a public nuisance. Original Message From: Yolanta Schwartz [mailto:ysPcityofrh.net] Sent: Monday, January 04, 2016 9:05 AM To: Natalie C. Karpeles Subject: FW: Medical Marijuana Res/staff rprt Page 2 of 3 Tuesday, March 22, 2016 12:56:10 PM Pacific Daylight Time Subject: Marijuana Ordinance Date: Thursday, March 17, 2016 3:48:30 PM Pacific Daylight Time From: Yolanta Schwartz <ys@cityofrh.net> To: Ray Cruz <rcruz@cityofrh.net> Ray, I spoke to Planners from some of the local cities regarding their Marijuana ordinance. PVE — adopted a total ban (cultivation, dispensaries and delivery) prior to the March 1, 2016 dead line that cities were threaten with. (No longer an emergency as Governor Brown eliminated the March 1 deadline for cities to adopt an ordinance, if they want to have any control over marijuana activities). RHE — adopted a total ban on cultivation and dispensaries; and allows limited (similar to ours) delivery Torrance - adopted a total ban on cultivation and dispensaries; and allows limited (similar to ours) delivery RPV — City Council put the item on hold until after November. Hermosa Beach - adopted a total ban (cultivation, dispensaries and delivery) prior to the March 1, 2016 dead line. None of the cities above have any immediate plans to change their ordinance. Apparently there is a Marijuana Measure being placed on the ballot in November, which would address state wide regulations, so some cities are waiting to see what happens then. Yolanta Schwartz Planning Director City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills, CA 90274 310 377-1521 F: 310-377-7288 This is a transmission from the City of Rolling Hills. The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email and delete the message. WARNING: Computer viruses can be transmitted by e-mail. The recipient should check this e-mail and any attachments for the presence of viruses. The CITY OF ROLLING HILLS accepts no liability for any damage caused by any virus transmitted by this e- mail. Page 1 of 1 '!...0 W STATE OF CALI FOR/41A L[V TNF AUTHENTICATED BUURFwUL ELECTRONICLEGAL MATERIAL Senate Bill No. 643 CHAPTER 719 An act to amend Sections 144, 2220.05, 2241.5, and 2242.1 of, to add Sections 19302.1, 19319, 19320, 19322, 19323, 19324, and 19325 to, to add Article 25 (commencing with Section 2525) to Chapter 5 of Division 2 of, and to add Article 6 (commencing with Section 19331), Article 7.5 (commencing with Section 19335), Article 8 (commencing with Section 19337), and Article 11 (commencing with Section 19348) to Chapter 3.5 of Division 8 of, the Business and Professions Code, relating to medical marijuana. [Approved by Governor October 9, 2015. Filed with Secretary of State October 9, 2015.] LEGISLATIVE COUNSEL'S DIGEST SB 643, McGuire. Medical marijuana. (1) Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 6, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. Existing law provides for the licensure of various professions by the Department of Consumer Affairs. Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of food, drugs, devices, and cosmetics, as specified. A violation of that law is a crime. This bill would, among other things, set forth standards for a physician and surgeon prescribing medical cannabis and require the Medical Board of California to prioritize its investigative and prosecutorial resources to identify and discipline physicians and surgeons that have repeatedly recommended excessive cannabis to patients for medical purposes or repeatedly recommended cannabis to patients for medical purposes without a good faith examination, as specified. The bill would require the Bureau of Medical Marijuana to require an applicant to furnish a full set of fingerprints for the purposes of conducting criminal history record checks. The bill would prohibit a physician and surgeon who recommends cannabis to a patient for a medical purpose from accepting, soliciting, or offering any form of remuneration from a facility licensed under the Medical Marijuana Regulation and Safety Act. The bill would make a violation of this prohibition a misdemeanor, and by creating a new crime, this bill would impose a state -mandated local program. 89 Ch. 719 — 2 — This bill would require the Governor, under the Medical Marijuana Regulation and Safety Act, to appoint, subject to confirmation by the Senate, a chief of the Bureau of Medical Marijuana Regulation. The act would require the Department of Consumer Affairs to have the sole authority to create, issue, renew, discipline, suspend, or revoke licenses for the transportation and storage, unrelated to manufacturing, of medical marijuana, and would authorize the department to collect fees for its regulatory activities and impose specified duties on this department in this regard. The act would require the Department of Food and Agriculture to administer the provisions of the act related to, and associated with, the cultivation, and transportation of, medical cannabis and would impose specified duties on this department in this regard. The act would require the State Department of Public Health to administer the provisions of the act related to, and associated with, the manufacturing and testing of medical cannabis and would impose specified duties on this department in this regard. This bill would authorize counties to impose a tax upon specified cannabis -related activity. This bill would require an applicant for a state license pursuant to the act to provide a statement signed by the applicant under penalty of perjury, thereby changing the scope of a crime and imposing a state -mandated local program. This bill would set forth standards for the licensed cultivation of medical cannabis, including, but not limited to, establishing duties relating to the environmental impact of cannabis and cannabis products. The bill would also establish state cultivator license types, as specified. (2) This bill would provide that its provisions are severable. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (4) Existing constitutional provisions require that a statute that limits the right of access to the meeting of public bodies or the writings of public bodies or the writings of public officials and agencies be adopted with finding demonstrating the interest protected by the limitation and the need for protecting that interest. The bill would make legislative findings to that effect. (5) The bill would become operative only if AB 266 and AB 243 of the 2015-16 Regular Session are enacted and take effect on or before January 1, 2016. 89 — 3 — Ch. 719 The people of the State of California do enact as follows: SECTION 1. Section 144 of the Business and Professions Code is amended to read: 144. (a) Notwithstanding any other provision of law, an agency designated in subdivision (b) shall require an applicant to furnish to the agency a full set of fingerprints for purposes of conducting criminal history record checks. Any agency designated in subdivision (b) may obtain and receive, at its discretion, criminal history information from the Department of Justice and the United States Federal Bureau of Investigation. (b) Subdivision (a) applies to the following: (1) California Board of Accountancy. (2) State Athletic Commission. (3) Board of Behavioral Sciences. (4) Court Reporters Board of California. (5) State Board of Guide Dogs for the Blind. (6) California State Board of Pharmacy. (7) Board of Registered Nursing. (8) Veterinary Medical Board. • (9) Board of Vocational Nursing and Psychiatric Technicians. (10) Respiratory Care Board of California. (11) Physical Therapy Board of California. (12) Physician Assistant Committee of the Medical Board of California. (13) Speech -Language Pathology and Audiology and Hearing Aid Dispenser Board. (14) Medical Board of California. (15) State Board of Optometry. (16) Acupuncture Board. (17) Cemetery and Funeral Bureau. (18) Bureau of Security and Investigative Services. (19) Division of Investigation. (20) Board of Psychology. (21) California Board of Occupational Therapy. (22) Structural Pest Control Board. (23) Contractors' State License Board. (24) Naturopathic Medicine Committee. (25) Professional Fiduciaries Bureau. (26) Board for Professional Engineers, Land Surveyors, and Geologists. (27) Bureau of Medical Marijuana Regulation. (c) For purposes of paragraph (26) of subdivision (b), the term "applicant" shall be limited to an initial applicant who has never been registered or licensed by the board or to an applicant for a new licensure or registration category. SEC. 2. Section 2220.05 of the Business and Professions Code is amended to read: 2220.05. (a) In order to ensure that its resources are maximized for the protection of the public, the Medical Board of California shall prioritize its 89 Ch. 719 — 4 — investigative and prosecutorial resources to ensure that physicians and surgeons representing the greatest threat of harm are identified and disciplined expeditiously. Cases involving any of the following allegations shall be handled on a priority basis, as follows, with the highest priority being given to cases in the first paragraph: (1) Gross negligence, incompetence, or repeated negligent acts that involve death or serious bodily injury to one or more patients, such that the physician and surgeon represents a danger to the public. (2) Drug or alcohol abuse by a physician and surgeon involving death or serious bodily injury to a patient. (3) Repeated acts of clearly excessive prescribing, furnishing, or administering of controlled substances, or repeated acts of prescribing, dispensing, or furnishing of controlled substances without a good faith prior examination of the patient and medical reason therefor. However, in no event shall a physician and surgeon prescribing, furnishing, or administering controlled substances for intractable pain consistent with lawful prescribing, including, but not limited to, Sections 725, 2241.5, and 2241.6 of this code and Sections 11159.2 and 124961 of the Health and Safety Code, be prosecuted for excessive prescribing and prompt review of the applicability of these provisions shall be made in any complaint that may implicate these provisions. (4) Repeated acts of clearly excessive recommending of cannabis to patients for medical purposes, or repeated acts of recommending cannabis to patients for medical purposes without a good faith prior examination of the patient and a medical reason for the recommendation. (5) Sexual misconduct with one or more patients during a course of treatment or an examination. (6) Practicing medicine while under the influence of drugs or alcohol. (b) The board may by regulation prioritize cases involving an allegation of conduct that is not described in subdivision (a). Those cases prioritized by regulation shall not be assigned a priority equal to or higher than the priorities established in subdivision (a). (c) The Medical Board of California shall indicate in its annual report mandated by Section 2312 the number of temporary restraining orders, interim suspension orders, and disciplinary actions that are taken in each priority category specified in subdivisions (a) and (b). SEC. 3. Section 2241.5 of the Business and Professions Code is amended to read: 2241.5. (a) A physician and surgeon may prescribe for, or dispense or administer to, a person under his or her treatment for a medical condition dangerous drugs or prescription controlled substances for the treatment of pain or a condition causing pain, including, but not limited to, intractable pain. (b) No physician and surgeon shall be subject to disciplinary action for prescribing, dispensing, or administering dangerous drugs or prescription controlled substances in accordance with this section. • C 89 — 5 — Ch. 719 (c) This section shall not affect the power of the board to take any action described in Section 2227 against a physician and surgeon who does any of the following: (1) Violates subdivision (b), (c), or (d) of Section 2234 regarding gross negligence, repeated negligent acts, or incompetence. (2) Violates Section 2241 regarding treatment of an addict. (3) Violates Section 2242 or 2525.3 regarding performing an appropriate prior examination and the existence of a medical indication for prescribing, dispensing, or furnishing dangerous drugs or recommending medical cannabis. (4) Violates Section 2242.1 regarding prescribing on the Internet. (5) Fails to keep complete and accurate records of purchases and disposals of substances listed in the California Uniform Controlled Substances Act (Division 10 (commencing with Section 11000) of the Health and Safety Code) or controlled substances scheduled in the federal Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. Sec. 801 et seq.), or pursuant to the federal Comprehensive Drug Abuse Prevention and Control Act of 1970. A physician and surgeon shall keep records of his or her purchases and disposals of these controlled substances or dangerous drugs, including the date of purchase, the date and records of the sale or disposal of the drugs by the physician and surgeon, the name and address of the person receiving the drugs, and the reason for the disposal or the dispensing of the drugs to the person, and shall otherwise comply with all state recordkeeping requirements for controlled substances. (6) Writes false or fictitious prescriptions for controlled substances listed in the California Uniform Controlled Substances Act or scheduled in the federal Comprehensive Drug Abuse Prevention and Control Act of 1970. (7) Prescribes, administers, or dispenses in violation of this chapter, or in violation of Chapter 4 (commencing with Section 11150) or Chapter 5 (commencing with Section 11210) of Division 10 of the Health and Safety Code. (d) A physician and surgeon shall exercise reasonable care in determining whether a particular patient or condition, or the complexity of a patient's treatment, including, but not limited to, a current or recent pattern of drug abuse, requires consultation with, or referral to, a more qualified specialist. (e) Nothing in this section shall prohibit the governing body of a hospital from taking disciplinary actions against a physician and surgeon pursuant to Sections 809.05, 809.4, and 809.5. SEC. 4. Section 2242.1 of the Business and Professions Code is amended to read: 2242.1. (a) No person or entity may prescribe, dispense, or furnish, or cause to be prescribed, dispensed, or furnished, dangerous drugs or dangerous devices, as defined in Section 4022, on the Internet for delivery to any person in this state, without an appropriate prior examination and medical indication, except as authorized by Section 2242. (b) Notwithstanding any other provision of law, a violation of this section may subject the person or entity that has committed the violation to either 89 Ch. 719 — 6 — a fine of up to twenty-five thousand dollars ($25,000) per occurrence pursuant to a citation issued by the board or a civil penalty of twenty-five thousand dollars ($25,000) per occurrence. (c) The Attorney General may bring an action to enforce this section and to collect the fines or civil penalties authorized by subdivision (b). (d) For notifications made on and after January 1, 2002, the Franchise Tax Board, upon notification by the Attorney General or the board of a final judgment in an action brought under this section, shall subtract the amount of the fine or awarded civil penalties from any tax refunds or lottery winnings due to the person who is a defendant in the action using the offset authority under Section 12419.5 of the Government Code, as delegated by the Controller, and the processes as established by the Franchise Tax Board for this purpose. That amount shall be forwarded to the board for deposit in the Contingent Fund of the Medical Board of California. (e) If the person or entity that is the subject of an action brought pursuant to this section is not a resident of this state, a violation of this section shall, if applicable, be reported to the person's or entity's appropriate professional licensing authority. (f) Nothing in this section shall prohibit the board from commencing a disciplinary action against a physician and surgeon pursuant to Section 2242 or 2525.3. SEC. 5. Article 25 (commencing with Section 2525) is added to Chapter 5 of Division 2 of the Business and Professions Code, to read: Article 25. Recommending Medical Cannabis 2525. (a) It is unlawful for a physician and surgeon who recommends cannabis to a patient for a medical purpose to accept, solicit, or offer any form of remuneration from or to a facility issued a state license pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8, if the physician and surgeon or his or her immediate family have a financial interest in that facility. (b) For the purposes of this section, "financial interest" shall have the same meaning as in Section 650.01. (c) A violation of this section shall be a misdemeanor punishable by up to one year in county jail and a fine of up to five thousand dollars ($5,000) or by civil penalties of up to five thousand dollars ($5,000) and shall constitute unprofessional conduct. 2525.1. The Medical Board of California shall consult with the California Marijuana Research Program, known as the Center for Medicinal Cannabis Research, authorized pursuant to Section 11362.9 of the Health and Safety Code, on developing and adopting medical guidelines for the appropriate administration and use of medical cannabis. 2525.2. An individual who possesses a license in good standing to practice medicine or osteopathy issued by the Medical Board of California or the Osteopathic Medical Board of California shall not recommend medical 89 -7— Ch.719 cannabis to a patient, unless that person is the patient's attending physician, as defined by subdivision (a) of Section 11362.7 of the Health and Safety Code. 2525.3. Recommending medical cannabis to a patient for a medical purpose without an appropriate prior examination and a medical indication constitutes unprofessional conduct. 2525.4. It is unprofessional conduct for any attending physician recommending medical cannabis to be employed by, or enter into any other agreement with, any person or entity dispensing medical cannabis. 2525.5. (a) A person shall not distribute any form of advertising for physician recommendations for medical cannabis in California unless the advertisement bears the following notice to consumers: NOTICE TO CONSUMERS: The Compassionate Use Act of 1996 ensures that seriously ill Californians have the right to obtain and use cannabis for medical purposes where medical use is deemed appropriate and has been recommended by a physician who has determined that the person's health would benefit from the use of medical cannabis. Recommendations must come from an attending physician as defined in Section 11362.7 of the Health and Safety Code. Cannabis is a Schedule 1 drug according to the federal Controlled SubstancesAct.Activity related to cannabis use is subject to federal prosecution, regardless of the protections provided by state law. (b) Advertising for attending physician recommendations for medical cannabis shall meet all of the requirements in Section 651. Price advertising shall not be fraudulent, deceitful, or misleading, including statements or advertisements of bait, discounts, premiums, gifts, or statements of a similar nature. SEC. 6. Section 19302.1 is added to the Business and Professions Code, to read: 19302.1. (a) The Governor shall appoint a chief of the bureau, subject to confirmation by the Senate, at a salary to be fixed and determined by the director with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor. (b) Every power granted to or duty imposed upon the director under this chapter may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe. In addition to every power granted or duty imposed with this chapter, the director shall have all other powers and duties generally applicable in relation to bureaus that are part of the Department of Consumer Affairs. (c) The director may employ and appoint all employees necessary to properly administer the work of the bureau, in accordance with civil service laws and regulations. (d) The Department of Consumer Affairs shall have the sole authority to create, issue, renew, discipline, suspend, or revoke licenses for the 89 Ch. 719 — 8 — transportation, storage unrelated to manufacturing activities, distribution, and sale of medical marijuana within the state and to collect fees in connection with activities the bureau regulates. The bureau may create licenses in addition to those identified in this chapter that the bureau deems necessary to effectuate its duties under this chapter. (e) The Department of Food and Agriculture shall administer the provisions of this chapter related to and associated with the cultivation of medical cannabis. The Department of Food and Agriculture shall have the authority to create, issue, and suspend or revoke cultivation licenses for violations of this chapter. The State Department of Public Health shall administer the provisions of this chapter related to and associated with the manufacturing and testing of medical cannabis. SEC. 7. Section 19319 is added to the Business and Professions Code, to read: 19319. (a) A qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who cultivates, possesses, stores, manufactures, or transports cannabis exclusively for his or her personal medical use but who does not provide, donate, sell, or distribute cannabis to any other person is not thereby engaged in commercial cannabis activity and is therefore exempt from the licensure requirements of this chapter. (b) A primary caregiver who cultivates, possesses, stores, manufactures, transports, donates, or provides cannabis exclusively for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 of the Health and Safety Code, but who does not receive remuneration for these activities except for compensation in full compliance with subdivision (c) of Section 11362.765 of the Health and Safety Code, is exempt from the licensure requirements of this chapter. SEC. 8. Section 19320 is added to the Business and Professions Code, to read: 19320. (a) Licensing authorities administering this chapter may issue state licenses only to qualified applicants engaging in commercial cannabis activity pursuant to this chapter. Upon the date of implementation of regulations by the licensing authority, no person shall engage in commercial cannabis activity without possessing both a state license and a local permit, license, or other authorization .A licensee shall not commence activity under the authority of a state license until the applicant has obtained, in addition to the state license, a license or permit from the local jurisdiction in which he or she proposes to operate, following the requirements of the applicable local ordinance. (b) Revocation of a local license, permit, or other authorization shall terminate the ability of a medical cannabis business to operate within that local jurisdiction until the local jurisdiction reinstates or reissues the local license, permit, or other required authorization. Local authorities shall notify the bureau upon revocation of a local license. The bureau shall inform relevant licensing authorities. 89 — 9 — Ch. 719 (c) Revocation of a state license shall terminate the ability of a medical cannabis licensee to operate within California until the licensing authority reinstates or reissues the state license. Each licensee shall obtain a separate license for each location where it engages in commercial medical cannabis activity. However, transporters only need to obtain licenses for each physical location where the licensee conducts business while not in transport, or any equipment that is not currently transporting medical cannabis or medical cannabis products, permanently resides. (d) In addition to the provisions of this chapter, local jurisdictions retain the power to assess fees and taxes, as applicable, on facilities that are licensed pursuant to this chapter and the business activities of those licensees. (e) Nothing in this chapter shall be construed to supersede or limit state agencies, including the State Water Resources Control Board and Department of Fish and Wildlife, from establishing fees to support their medical cannabis regulatory programs. SEC. 9. Section 19322 is added to the Business and Professions Code, to read: 19322. (a) A person or entity shall not submit an application for a state license issued by the department pursuant to this chapter unless that person or entity has received a license, permit, or authorization by a local jurisdiction. An applicant for any type of state license issued pursuant to this chapter shall do all of the following: (1) Electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance, pending trial or appeal. (A) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code. (B) The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants. (C) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph. (2) Provide documentation issued by the local jurisdiction in which the proposed business is operating certifying that the applicant is or will be in compliance with all local ordinances and regulations. (3) Provide evidence of the legal right to occupy and use the proposed location. For an applicant seeking a cultivator, distributor, manufacturing, or dispensary license, provide a statement from the owner of real property or their agent where the cultivation, distribution, manufacturing, or dispensing commercial medical cannabis activities will occur, as proof to demonstrate the landowner has acknowledged and consented to permit 89 Ch. 719 — 10 — cultivation, distribution, manufacturing, or dispensary activities to be conducted on the property by the tenant applicant. (4) If the application is for a cultivator or a dispensary, provide evidence that the proposed location is located beyond at least a 600 -foot radius from a school, as required by Section 11362.768 of the Health and Safety Code. (5) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate. (6) (A) For an applicant with 20 or more employees, provide a statement that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement. (B) For the purposes of this paragraph, "employee" does not include a supervisor. (C) For purposes of this paragraph, "supervisor" means an individual having authority, in the interest of the licensee, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment. (7) Provide the applicant's seller's permit number issued pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a seller's permit. (8) Provide any other information required by the licensing authority. (9) For an applicant seeking a cultivation license, provide a statement declaring the applicant is an "agricultural employer," as defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of Division 2 of the Labor Code), to the extent not prohibited by law. (10) For an applicant seeking licensure as a testing laboratory, register with the State Department of Public Health and provide any information required by the State Department of Public Health. (11) Pay all applicable fees required for licensure by the licensing authority. (b) For applicants seeking licensure to cultivate, distribute, or manufacture medical cannabis, the application shall also include a detailed description of the applicant's operating procedures for all of the following, as required by the licensing authority: (1) Cultivation. (2) Extraction and infusion methods. (3) The transportation process. (4) Inventory procedures. (5) Quality control procedures. SEC. 10. Section 19323 is added to the Business and Professions Code, to read: 89 — 11 — Ch. 719 19323. (a) The licensing authority shall deny an application if either the applicant or the premises for which a state license is applied do not qualify for licensure under this chapter. (b) The licensing authority may deny the application for licensure or renewal of a state license if any of the following conditions apply: (1) Failure to comply with the provisions of this chapter or any rule or regulation adopted pursuant to this chapter, including but not limited to, any requirement imposed to protect natural resources, instream flow, and water quality pursuant to subdivision (a) of Section 19332. (2) Conduct that constitutes grounds for denial of licensure pursuant to Chapter 2 (commencing with Section 480) of Division 1.5. (3) A local agency has notified the licensing authority that a licensee or applicant within its jurisdiction is in violation of state rules and regulation relating to commercial cannabis activities, and the licensing authority, through an investigation, has determined that the violation is grounds for termination or revocation of the license. The licensing authority shall have the authority to collect reasonable costs, as determined by the licensing authority, for investigation from the licensee or applicant. (4) The applicant has failed to provide information required by the licensing authority. (5) The applicant or licensee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the licensing authority determines that the applicant or licensee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the licensing authority shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or licensee to be issued a license based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the licensing authority shall include, but not be limited to, the following: (A) A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance. (B) A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. (C) A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code. (D) A felony conviction involving fraud, deceit, or embezzlement. (6) The applicant, or any of its officers, directors, or owners, is a licensed physician making patient recommendations for medical cannabis pursuant to Section 11362.7 of the Health and Safety Code. (7) The applicant or any of its officers, directors, or owners has been subject to fines or penalties for cultivation or production of a controlled substance on public or private lands pursuant to Section 12025 or 12025.1 of the Fish and Game Code. 89 Ch. 719 — 12 — (8) The applicant, or any of its officers, directors, or owners, has been sanctioned by a licensing authority or a city, county, or city and county for unlicensed commercial medical cannabis activities or has had a license revoked under this chapter in the three years immediately preceding the date the application is filed with the licensing authority. (9) Failure to obtain and maintain a valid seller's permit required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. SEC. 11. Section 19324 is added to the Business and Professions Code, to read: 19324. Upon the denial of any application for a license, the licensing authority shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written petition for a license with the licensing authority. Upon receipt of a timely filed petition, the licensing authority shall set the petition for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director of each licensing authority shall have all the powers granted therein. SEC. 12. Section 19325 is added to the Business and Professions Code, to read: 19325. An applicant shall not be denied a state license if the denial is based solely on any of the following: (a) A conviction or act that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made for which the applicant or licensee has obtained a certificate of rehabilitation pursuant to Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code. (b) A conviction that was subsequently dismissed pursuant to Section 1203.4, 1203.4a, or 1203.41 of the Penal Code. SEC. 13. Article 6 (commencing with Section 19331) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read: Article 6. Licensed Cultivation Sites 19331. The Legislature finds and declares all of the following: (a) The United States Environmental Protection Agency has not established appropriate pesticide tolerances for, or permitted the registration and lawful use of, pesticides on cannabis crops intended for human consumption pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.). (b) The use of pesticides is not adequately regulated due to the omissions in federal law, and cannabis cultivated in California for California patients can and often does contain pesticide residues. (c) Lawful California medical cannabis growers and caregivers urge the Department of Pesticide Regulation to provide guidance, in absence of federal guidance, on whether the pesticides currently used at most cannabis 89 — 13 — Ch. 719 cultivation sites are actually safe for use on cannabis intended for human consumption. 19332. (a) The Department of Food and Agriculture shall promulgate regulations governing the licensing of indoor and outdoor cultivation sites. (b) The Department of Pesticide Regulation, in consultation with the Department of Food and Agriculture, shall develop standards for the use of pesticides in cultivation, and maximum tolerances for pesticides and other foreign object residue in harvested cannabis. (c) The State Department of Public Health shall develop standards for the production and labeling of all edible medical cannabis products. (d) The Department of Food and Agriculture, in consultation with the Department of Fish and Wildlife and the State Water Resources Control Board, shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. (e) The Department of Food and Agriculture shall have the authority necessary for the implementation of the regulations it adopts pursuant to this chapter. The regulations shall do all of the following: (1) Provide that weighing or measuring devices used in connection with the sale or distribution of medical cannabis are required to meet standards equivalent to Division 5 (commencing with Section 12001). (2) Require that cannabis cultivation by licensees is conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. Nothing in this chapter, and no regulation adopted by the department, shall be construed to supersede or limit the authority of the State Water Resources Control Board, regional water quality control boards, or the Department of Fish and Wildlife to implement and enforce their statutory obligations or to adopt regulations to protect water quality, water supply, and natural resources. (3) Establish procedures for the issuance and revocation of unique identifiers for activities associated with a cannabis cultivation license, pursuant to Article 8 (commencing with Section 19337). All cannabis shall be labeled with the unique identifier issued by the Department of Food and Agriculture. (4) Prescribe standards, in consultation with the bureau, for the reporting of information as necessary related to unique identifiers, pursuant to Article 8 (commencing with Section 19337). (f) The Department of Pesticide Regulation, in consultation with the State Water Resources Control Board, shall promulgate regulations that require that the application of pesticides or other pest control in connection with the indoor or outdoor cultivation of medical cannabis meets standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations. (g) State cultivator license types issued by the Department of Food and Agriculture include: 89 Ch. 719 — 14 — (1) Type 1, or "specialty outdoor," for outdoor cultivation using no artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots. (2) Type 1A, or "specialty indoor;" for indoor cultivation using exclusively artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises. (3) Type 1B, or "specialty mixed -light," for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of less than or equal to 5,000 square feet of total canopy size on one premises. (4) Type 2, or "small outdoor," for outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises. (5) Type 2A, or "small indoor," for indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises. (6) Type 2B, or "small mixed -light," for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises. (7) Type 3, or "outdoor," for outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (8) Type 3A, or "indoor;" for indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (9) Type 3B, or "mixed -light," for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (10) Type 4, or "nursery;" for cultivation of medical cannabis solely as a nursery. Type 4 licensees may transport live plants. 19332.5. (a) Not later than January 1, 2020, the Department of Food and Agriculture in conjunction with the bureau, shall make available a certified organic designation and organic certification program for medical marijuana, if permitted under federal law and the National Organic Program (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)), and Article 7 (commencing with Section 110810) of Chapter 5 of Part 5 of Division 104 of the Health and Safety Code. (b) The bureau may establish appellations of origin for marijuana grown in California. (c) It is unlawful for medical marijuana to be marketed, labeled, or sold as grown in a California county when the medical marijuana was not grown in that county. 89 — 15 — Ch. 719 (d) It is unlawful to use the name of a California county in the labeling, marketing, or packaging of medical marijuana products unless the product was grown in that county. 19333. An employee engaged in commercial cannabis cultivation activity shall be subject to Wage Order 4-2001 of the Industrial Welfare Commission. SEC. 14. Article 7.5 (commencing with Section 19335) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read: Article 7.5. Unique Identifier and Track and Trace Program 19335. (a) The Department of Food and Agriculture, in consultation with the bureau, shall establish a track and trace program for reporting the movement of medical marijuana items throughout the distribution chain that utilizes a unique identifier pursuant to Section 11362.777 of the Health and Safety Code and secure packaging and is capable of providing information that captures, at a minimum, all of the following: (1) The licensee receiving the product. (2) The transaction date. (3) The cultivator from which the product originates, including the associated unique identifier, pursuant to Section 11362.777 of the Health and Safety Code. (b) (1) The Department of Food and Agriculture shall create an electronic database containing the electronic shipping manifests which shall include, but not be limited to, the following information: (A) The quantity, or weight, and variety of products shipped. (B) The estimated times of departure and arrival. (C) The quantity, or weight, and variety of products received. (D) The actual time of departure and arrival. (E) A categorization of the product. (F) The license number and the unique identifier pursuant to Section 11362.777 of the Health and Safety Code issued by the licensing authority for all licensees involved in the shipping process, including cultivators, transporters, distributors, and dispensaries. (2) (A) The database shall be designed to flag irregularities for all licensing authorities in this chapter to investigate. All licensing authorities pursuant to this chapter may access the database and share information related to licensees under this chapter, including social security and individual taxpayer identifications notwithstanding Section 30. (B) The Department of Food and Agriculture shall immediately inform the bureau upon the finding of an irregularity or suspicious finding related to a licensee, applicant, or commercial cannabis activity for investigatory purposes. (3) Licensing authorities and state and local agencies may, at any time, inspect shipments and request documentation for current inventory. (4) The bureau shall have 24 -hour access to the electronic database administered by the Department of Food and Agriculture. 89 Ch. 719 — 16 — (5) The Department of Food and Agriculture shall be authorized to enter into memoranda of understandings with licensing authorities for data sharing purposes, as deemed necessary by the Department of Food and Agriculture. (6) Information received and contained in records kept by the Department of Food and Agriculture or licensing authorities for the purposes of administering this section are confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this chapter or a local ordinance. (7) Upon the request of a state or local law enforcement agency, licensing authorities shall allow access to or provide information contained within the database to assist law enforcement in their duties and responsibilities pursuant to this chapter. 19336. (a) Chapter 4 (commencing with Section 55121) of Part 30 of Division 2 of the Revenue and Taxation Code shall apply with respect to the bureau's collection of the fees, civil fines, and penalties imposed pursuant to this chapter. (b) Chapter 8 (commencing with Section 55381) of Part 30 of Division 2 of the Revenue and Taxation Code shall apply with respect to the disclosure of information under this chapter. SEC. 15. Article 8 (commencing with Section 19337) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read: Article 8. Licensed Transporters 19337. (a) A licensee authorized to transport medical cannabis and medical cannabis products between licenses shall do so only as set forth in this chapter. (b) Prior to transporting medical cannabis or medical cannabis products, a licensed transporter of medical cannabis or medical cannabis products shall do both of the following: (1) Complete an electronic shipping manifest as prescribed by the licensing authority. The shipping manifest must include the unique identifier, pursuant to Section 11362.777 of the Health and Safety Code, issued by the Department of Food and Agriculture for the original cannabis product. (2) Securely transmit the manifest to the bureau and the licensee that will receive the medical cannabis product. The bureau shall inform the Department of Food and Agriculture of information pertaining to commercial cannabis activity for the purpose of the track and trace program identified in Section 19335. (c) During transportation, the licensed transporter shall maintain a physical copy of the shipping manifest and make it available upon request to agents of the Department of Consumer Affairs and law enforcement officers. 89 — 17 — Ch. 719 (d) The licensee receiving the shipment shall maintain each electronic shipping manifest and shall make it available upon request to the Department of Consumer Affairs and any law enforcement officers. (e) Upon receipt of the transported shipment, the licensee receiving the shipment shall submit to the licensing agency a record verifying receipt of the shipment and the details of the shipment. (f) Transporting, or arranging for or facilitating the transport of, medical cannabis or medical cannabis products in violation of this chapter is grounds for disciplinary action against the license. 19338. (a) This chapter shall not be construed to authorize or permit a licensee to transport or cause to be transported cannabis or cannabis products outside the state, unless authorized by federal law. (b) A local jurisdiction shall not prevent transportation of medical cannabis or medical cannabis products on public roads by a licensee transporting medical cannabis or medical cannabis products in compliance with this chapter. SEC. 16. Article 11 (commencing with Section 19348) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read: Article 11. Taxation 19348. (a) (1) A county may impose a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing medical cannabis or medical cannabis products by a licensee operating pursuant to this chapter. (2) The board of supervisors shall specify in the ordinance proposing the tax the activities subject to the tax, the applicable rate or rates, the method of apportionment, if necessary, and the manner of collection of the tax. The tax may be imposed for general governmental purposes or for purposes specified in the ordinance by the board of supervisors. (3) In addition to any other method of collection authorized by law, the board of supervisors may provide for the collection of the tax imposed pursuant to this section in the same manner, and subject to the same penalties and priority of lien, as other charges and taxes fixed and collected by the county. A tax imposed pursuant to this section is a tax and not a fee or special assessment. The board of supervisors shall specify whether the tax applies throughout the entire county or within the unincorporated area of the county. (4) The tax authorized by this section may be imposed upon any or all of the activities set forth in paragraph (1), as specified in the ordinance, regardless of whether the activity is undertaken individually, collectively, or cooperatively, and regardless of whether the activity is for compensation or gratuitous, as determined by the board of supervisors. (b) A tax imposed pursuant to this section shall be subject to applicable voter approval requirements imposed by law. 89 Ch. 719 — 18 — (c) This section is declaratory of existing law and does not limit or prohibit the levy or collection of any other fee, charge, or tax, or a license or service fee or charge upon, or related to, the activities set forth in subdivision (a) as otherwise provided by law. This section shall not be construed as a limitation upon the taxing authority of a county as provided by law. (d) This section shall not be construed to authorize a county to impose a sales or use tax in addition to the sales and use tax imposed under an ordinance conforming to the provisions of Sections 7202 and 7203 of the Revenue and Taxation Code. SEC. 17. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 18. The Legislature finds and declares that Section 14 of this act, which adds Section 19335 to the Business and Professions Code, thereby imposes a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: The limitation imposed under this act is necessary for purposes of compliance with the federal Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Sec. 1320d et seq.), the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code), and the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Part 2 of Division 1 of the Insurance Code). SEC. 19. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. SEC. 20. This act shall become operative only if Assembly Bill 266 and Assembly Bill 243 of the 2015-16 Session are enacted and take effect on or before January 1, 2016. 0 89 STATE OF CALIFORNIA TRW AUTHENTICATED OUNSEI URFAU ELECTRONICLEGAL MATERIAL Assembly Bill No. 266 CHAPTER 689 An act to amend Sections 27 and 101 of, to add Section 205.1 to, and to add Chapter 3.5 (commencing with Section 19300) to Division 8 of, the Business and Professions Code, to amend Section 9147.7 of the Government Code, to amend Section 11362.775 of the Health and Safety Code, to add Section 147.5 to the Labor Code, and to add Section 31020 to the Revenue and Taxation Code, relating to medical marijuana. [Approved by Governor October 9, 2015. Filed with . Secretary of State October 9,2015 .1 LEGISLATIVE COUNSEL'S DIGEST AB 266, Bonta. Medical marijuana.. (1) Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. Existing law provides for the licensure of various professions by boards or bureaus within the Department of Consumer Affairs. Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of food, drugs, devices, and cosmetics, as specified. A violation of that law is a crime. This bill, among other things, would enact the Medical Marijuana Regulation and Safety Act for the licensure and regulation of medical marijuana and would establish within the Department of Consumer Affairs the Bureau of Medical Marijuana Regulation, under the supervision and control of the Director of Consumer Affairs. The bill would require the director to administer and enforce the provisions of the act. This bill would also require the Board of Equalization, in consultation with the Department of Food and Agriculture, to adopt a system for reporting the movement of commercial cannabis and cannabis products. This bill would impose certain fines and civil penalties for specified violations of the act, and would require moneys collected as a result of these fines and civil penalties to be deposited into the Medical Cannabis Fines and Penalties Account. (2) Under existing law, certain persons with identification cards, who associate within the state in order collectively or cooperatively to cultivate marijuana for medical purposes, are not solely on the basis of that fact subject to specified state criminal sanctions. 87 Ch. 689 — 2 — This bill would repeal these provisions upon the issuance of licenses by .licensing authorities pursuant to the Medical Marijuana Regulation and 7 -'Safety Act, as specified, and would instead provide that actions of licensees witli'the relevant local permits, in accordance with the act and applicable `local ordinances, are not offenses subject to arrest, prosecution, or other sanction under state law. (3) This bill would provide that its provisions are severable. (4) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (6) The bill would provide that it shall become operative only if SB 643 and AB 243 of the 2015-16 Regular Session are also enacted and become operative. The people of the State of California do enact as follows: SECTION 1. Section 27 of the Business and Professions Code is amended to read: 27. (a) Each entity specified in subdivisions (c), (d), and (e) shall provide on the Internet information regarding the status of every license issued by that entity in accordance with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code). The public information to be provided on the Internet shall include information on suspensions and revocations of licenses issued by the entity and other related enforcement action, including accusations filed pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) taken by the entity relative to persons, businesses, or facilities subject to licensure or regulation by the entity. The information may not include personal information, including home telephone number, date of birth, or social security number. Each entity shall disclose a licensee's address of record. However, each entity shall allow a licensee to provide a post office box number or other alternate address, instead of his or her home address, as the address of record. This section shall not preclude an entity from also requiring a licensee, who has provided a post office box number or other alternative mailing address as his or her address of record, to provide a 87 — 3 — Ch. 689 physical business address or residence address only for the entity's internal administrative use and not for disclosure as the licensee's address of record or disclosure on the Internet. (b) In providing information on the Internet, each entity specified in subdivisions (c) and (d) shall comply with the Department of Consumer Affairs' guidelines for access to public records. (c) Each of the following entities within the Department of Consumer Affairs shall comply with the requirements of this section: (1) The Board for Professional Engineers, Land Surveyors, and Geologists shall disclose information on its registrants and licensees. (2) The Bureau of Automotive Repair shall disclose information on its licensees, including auto repair dealers, smog stations, lamp and brake stations, smog check technicians, and smog inspection certification stations. (3) The Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation shall disclose information on its licensees and registrants, including major appliance repair dealers, combination dealers (electronic and appliance), electronic repair dealers, service contract sellers, and service contract administrators. (4) The Cemetery and Funeral Bureau shall disclose information on its licensees, including cemetery brokers, cemetery salespersons, cemetery managers, crematory managers, cemetery authorities, crematories, cremated remains disposers, embalmers, funeral establishments, and funeral directors. (5) The Professional Fiduciaries Bureau shall disclose information on its licensees. (6) The Contractors' State License Board shall disclose information on its licensees and registrants in accordance with Chapter 9 (commencing with Section 7000) of Division 3. In addition to information related to licenses as specified in subdivision (a), the board shall also disclose information provided to the board by the Labor Commissioner pursuant to Section 98.9 of the Labor Code. (7) The Bureau for Private Postsecondary Education shall disclose information on private postsecondary institutions under its jurisdiction, including disclosure of notices to comply issued pursuant to Section 94935 of the Education Code. (8) The California Board of Accountancy shall disclose information on its licensees and registrants. (9) The California Architects Board shall disclose information on its licensees, including architects and landscape architects. (10) The State Athletic Commission shall disclose information on its licensees and registrants. (11) The State Board of Barbering and Cosmetology shall disclose information on its licensees. (12) The State Board of Guide Dogs for the Blind shall disclose information on its licensees and registrants. (13) The Acupuncture Board shall disclose information on its licensees. (14) The Board of Behavioral Sciences shall disclose information on its licensees, including licensed marriage and family therapists, licensed clinical 87 Ch. 689 — 4 — social workers, licensed educational psychologists, and licensed professional clinical counselors. (15) The Dental Board of California shall disclose information on its licensees. (16) The State Board of Optometry shall disclose information regarding certificates of registration to practice optometry, statements of licenure, optometric corporation registrations, branch office licenses, and fictitious name permits of its licensees. (17) The Board of Psychology shall disclose information on its licensees, including psychologists, psychological assistants, and registered psychologists. (d) The State Board of Chiropractic Examiners shall disclose information on its licensees. (e) The Structural Pest Control Board shall disclose information on its licensees, including applicators, field representatives, and operators in the areas of fumigation, general pest and wood destroying pests and organisms, and wood roof cleaning and treatment. (f) The Bureau of Medical Marijuana Regulation shall disclose information on its licensees. (g) "Internet" for the purposes of this section has the meaning set forth in paragraph (6) of subdivision (f) of Section 17538. SEC. 2. Section 101 of the Business and Professions Code is amended to read: 101. The department is comprised of the following: (a) The Dental Board of California. (b) The Medical Board of California. (c) The State Board of Optometry. (d) The California State Board of Pharmacy. (e) The Veterinary Medical Board. (f) The California Board of Accountancy. (g) The California Architects Board. (h) The Bureau of Barbering and Cosmetology. (i) The Board for Professional Engineers and Land Surveyors. (j) The Contractors' State License Board. (k) The Bureau for Private Postsecondary Education. (1) The Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation. (m) The Board of Registered Nursing. (n) The Board of Behavioral Sciences. (o) The State Athletic Commission. (p) The Cemetery and Funeral Bureau. (q) The State Board of Guide Dogs for the Blind. (r) The Bureau of Security and Investigative Services. (s) The Court Reporters Board of California. (t) The Board of Vocational Nursing and Psychiatric Technicians. (u) The Landscape Architects Technical Committee. (v) The Division of Investigation. 87 — 5 — Ch. 689 (w) The Bureau of Automotive Repair. (x) The Respiratory Care Board of California. (y) The Acupuncture Board. (z) The Board of Psychology. (aa) The California Board of Podiatric Medicine. (ab) The Physical Therapy Board of California. (ac) The Arbitration Review Program. (ad) The Physician Assistant Committee. (ae) The Speech -Language Pathology and Audiology Board. (af) The California Board of Occupational Therapy. (ag) The Osteopathic Medical Board of California. (ah) The Naturopathic Medicine Committee. (ai) The Dental Hygiene Committee of California. (aj) The Professional Fiduciaries Bureau. (ak) The State Board of Chiropractic Examiners. (al) The Bureau of Real Estate. (am) The Bureau of Real Estate Appraisers. (an) The Structural Pest Control Board. (ao) The Bureau of Medical Marijuana Regulation. (ap) Any other boards, offices, or officers subject to its jurisdiction by law. SEC. 3. Section 205.1 is added to the Business and Professions Code, to read: 205.1. Notwithstanding subdivision (a) of Section 205, the Medical Marijuana Regulation and Safety Act Fund is a special fund within the Professions and Vocations Fund, and is subject to subdivision (b) of Section 205. SEC. 4. Chapter 3.5 (commencing with Section 19300) is added to Division 8 of the Business and Professions Code, to read: CHAPTER 3.5. MEDICAL MARIJUANA REGULATION AND SAFETY ACT Article 1. Definitions 19300. This act shall be known and may be cited as the Medical Marijuana Regulation and Safety Act. 19300.5. For purposes of this chapter, the following definitions shall apply: (a) "Accrediting body" means a nonprofit organization that requires conformance to ISO/IEC 17025 requirements and is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement for Testing. (b) "Applicant," for purposes of Article 4 (commencing with Section 19319), means the following: 87 Ch. 689 — 6 — (1) Owner or owners of a proposed facility, including all persons or entities having ownership interest other than a security interest, lien, or encumbrance on property that will be used by the facility. (2) If the owner is an entity, "owner" includes within the entity each person participating in the direction, control, or management of, or having a financial interest in, the proposed facility. (3) If the applicant is a publicly traded company, "owner" means the chief executive officer or any person or entity with an aggregate ownership interest of 5 percent or more. (c) "Batch" means a specific quantity of medical cannabis or medical cannabis products that is intended to have uniform character and quality, within specified limits, and is produced according to a single manufacturing order during the same cycle of manufacture. (d) "Bureau" means the Bureau of Medical Marijuana Regulation within the Department of Consumer Affairs. (e) "Cannabinoid" or "phytocannabinoid" means a chemical compound that is unique to and derived from cannabis. (f) "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code. (g) "Cannabis concentrate" means manufactured cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency. An edible medical cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code. (h) "Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code. (i) "Certificate of accreditation" means a certificate issued by an accrediting body to a licensed testing laboratory, entity, or site to be registered in the state. (j) "Chief" means Chief of the Bureau of Medical Marijuana Regulation within the Department of Consumer Affairs. 87 -7— Ch.689 (k) "Commercial cannabis activity" includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical cannabis or a medical cannabis product, except as set forth in Section 19319, related to qualifying patients and primary caregivers. (l) "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (m) "Delivery" means the commercial transfer of medical cannabis or medical cannabis products from a dispensary, up to an amount determined by the bureau to a primary caregiver or qualified patient as defined in Section 11362.7 of the Health and Safety Code, or a testing laboratory. "Delivery" also includes the use by a dispensary of any technology platform owned and controlled by the dispensary, or independently licensed under this chapter, that enables qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed dispensary of medical cannabis or medical cannabis products. (n) "Dispensary" means a facility where medical cannabis, medical cannabis products, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to express authorization by local ordinance, medical cannabis and medical cannabis products as part of a retail sale. (o) "Dispensing" means any activity involving the retail sale of medical cannabis or medical cannabis products from a dispensary. (p) "Distribution" means the procurement, sale, and transport of medical cannabis and medical cannabis products between entities licensed pursuant to this chapter. (q) "Distributor" means a person licensed under this chapter to engage in the business of purchasing medical cannabis from a licensed cultivator, or medical cannabis products from a licensed manufacturer, for sale to a licensed dispensary. (r) "Dried flower" means all dead medical cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. (s) "Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum. An edible medical cannabis product is not considered food as defined by Section 109935 of the Health and Safety Code or a drug as defined by Section 109925 of the Health and Safety Code. (t) "Fund" means the Medical Marijuana Regulation and Safety Act Fund established pursuant to Section 19351. (u) "Identification program" means the universal identification certificate program for commercial medical cannabis activity authorized by this chapter. (v) "Labor peace agreement" means an agreement between a licensee and a bona fide labor organization that, at a minimum, protects the state's proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant's business. This agreement means that the 87 Ch. 689 — 8 — applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant's employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant's employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization. (w) "Licensing authority" means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the license. (x) "Cultivation site" means a facility where medical cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities, that holds a valid state license pursuant to this chapter, and that holds a valid local license or permit. (y) "Manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured medical cannabis, as described in subdivision (ae), or medical cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or medical cannabis products or labels or relabels its container, that holds a valid state license pursuant to this chapter, and that holds a valid local license or permit. (z) "Testing laboratory" means a facility, entity, or site in the state that offers or performs tests of medical cannabis or medical cannabis products and that is both of the following: (1) Accredited by an accrediting body that is independent from all other persons involved in the medical cannabis industry in the state. (2) Registered with the State Department of Public Health. (aa) "Transporter" means a person issued a state license by the bureau to transport medical cannabis or medical cannabis products in an amount above a threshold determined by the bureau between facilities that have been issued a state license pursuant to this chapter. (ab) "Licensee" means a person issued a state license under this chapter to engage in commercial cannabis activity. (ac) "Live plants" means living medical cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants. (ad) "Lot" means a batch, or a specifically identified portion of a batch, having uniform character and quality within specified limits. In the case of medical cannabis or a medical cannabis product produced by a continuous process, "lot" means a specifically identified amount produced in a unit of time or a quantity in a manner that ensures its having uniform character and quality within specified limits. (ae) "Manufactured cannabis" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. 87 — 9 — Ch. 689 (af) "Manufacturing site" means a location that produces, prepares, propagates, or compounds manufactured medical cannabis or medical cannabis products, directly or indirectly, by "extraction ;methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a licensee for these activities. (ag) "Medical cannabis;" "medical cannabis product," or "cannabis product" means a product containing cannabis, including, but not limited to, concentrates and extractions, intended to be sold for use by medical cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. For the purposes of this chapter, "medical cannabis" does not include "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code. (ah) "Nursery" means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of medical cannabis. (ai) "Permit," "local license;" or "local permit" means an official document granted by a local jurisdiction that specifically authorizes a person to conduct commercial cannabis activity in the local jurisdiction. (aj) "Person" means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number. (ak) "State license;" "license," or "registration" means a state license issued pursuant to this chapter. (al) "Topical cannabis" means a product intended for external use. A topical cannabis product is not considered a drug as defined by Section 109925 of the Health and Safety Code. (am) "Transport" means the transfer of medical cannabis or medical cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized pursuant to this chapter. 19300.7. License classifications pursuant to this chapter are as follows: (a) Type 1 = Cultivation; Specialty outdoor; Small. (b) Type 1A = Cultivation; Specialty indoor; Small. (c) Type IB = Cultivation; Specialty mixed -light; Small. (d) Type 2= Cultivation; Outdoor; Small. (e) Type 2A = Cultivation; Indoor; Small. (f) Type 2B = Cultivation; Mixed -light; Small. (g) Type 3 = Cultivation; Outdoor; Medium. (h) Type 3A = Cultivation; Indoor; Medium. (i) Type 3B = Cultivation; Mixed -light; Medium. (j) Type 4 = Cultivation; Nursery. (k) Type 6 = Manufacturer 1. (l) Type 7 = Manufacturer 2. (m) Type 8 = Testing. 87 Ch. 689 — 10 — (n) Type 10 = Dispensary; General. (o) Type 10A = Dispensary; No more than three retail sites. (p) Type 11 = Distribution. (q) Type 12 = Transporter. Article 2. Administration 19302. There is in the Department of Consumer Affairs the Bureau of Medical Marijuana Regulation, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter. 19303. Protection of the public shall be the highest priority for the bureau in exercising its licensing, regulatory, and disciplinary functions under this chapter. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be paramount. 19304. The bureau shall make and prescribe reasonable rules as may be necessary or proper to carry out the purposes and intent of this chapter and to enable it to exercise the powers and duties conferred upon it by this chapter, not inconsistent with any statute of this state, including particularly this chapter and Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For the performance of its duties, the bureau has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code. 19305. Notice of any action of the licensing authority required by this chapter to be given may be signed and given by the director or an authorized employee of the department and may be made personally or in the manner prescribed by Section 1013 of the Code of Civil Procedure. . 19306. (a) The bureau may convene an advisory committee to advise the bureau and licensing authorities on the development of standards and regulations pursuant to this chapter, including best practices and guidelines to ensure qualified patients have adequate access to medical cannabis and medical cannabis products. The advisory committee members shall be determined by the chief. (b) The advisory committee members may include, but not be limited to, representatives of the medical marijuana industry, representatives of medical marijuana cultivators, appropriate local and state agencies, appropriate local and state law enforcement, physicians, environmental and public health experts, and medical marijuana patient advocates. 19307. A licensing authority may make or cause to be made such investigation as it deems necessary to carry out its duties under this chapter. 19308. For any hearing held pursuant to this chapter, the director, or a licensing authority, may delegate the power to hear and decide to an administrative law judge. Any hearing before an administrative law judge shall be pursuant to the procedures, rules, and limitations prescribed in 87 — 11 — Ch. 689 Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. 19309. In any hearing before a licensing authority pursuant to this chapter, the licensing authority may pay any person appearing as a witness at the hearing at the request of the licensing authority pursuant to a subpoena, his or her actual, necessary, and reasonable travel, food, and lodging expenses, not to exceed the amount authorized for state employees. 19310. The department may on its own motion at any time before a penalty assessment is placed into effect and without any further proceedings, review the penalty, but such review shall be limited to its reduction. Article 3. Enforcement 19311. Grounds for disciplinary action include: (a) Failure to comply with the provisions of this chapter or any rule or regulation adopted pursuant to this chapter. (b) Conduct that constitutes grounds for denial of licensure pursuant to Chapter 3 (commencing with Section 490) of Division 1.5. (c) Any other grounds contained in regulations adopted by a licensing authority pursuant to this chapter. (d) Failure to comply with any state law, except as provided for in this chapter or other California law. 19312. Each licensing authority may suspend or revoke licenses, after proper notice and hearing to the licensee, if the licensee is found to have committed any of the acts or omissions constituting grounds for disciplinary action. The disciplinary proceedings under this chapter shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director of each licensing authority shall have all the powers granted therein. 19313. Each licensing authority may take disciplinary action against a licensee for any violation of this chapter when the violation was committed by the licensee's agent or employee while acting on behalf of the licensee or engaged in commercial cannabis activity. 19313.5. Upon suspension or revocation of a license, the licensing authority shall inform the bureau. The bureau shall then inform all other licensing authorities and the Department of Food and Agriculture. 19314. All accusations against licensees shall be filed by the licensing authority within five years after the performance of the act or omission alleged as the ground for disciplinary action; provided, however, that the foregoing provision shall not constitute a defense to an accusation alleging fraud or misrepresentation as a ground for disciplinary action. The cause for disciplinary action in such case shall not be deemed to have accrued until discovery, by the licensing authority, of the facts constituting the fraud or misrepresentation, and, in such case, the accusation shall be filed within five years after such discovery. 87 Ch. 689 — 12 — 19315. (a) Nothing in this chapter shall be interpreted to supersede or limit existing local authority for law enforcement activity, enforcement of local zoning requirements or local ordinances, or enforcement of local permit or licensing requirements. (b) Nothing in this chapter shall be interpreted to require the Department of Consumer Affairs to undertake local law enforcement responsibilities, enforce local zoning requirements, or enforce local licensing requirements. (c) Nothing in this chapter shall be interpreted to supersede or limit state agencies from exercising their existing enforcement authority under the Fish and Game Code, the Water Code, the Food and Agricultural Code, or the Health and Safety Code. 19316. (a) Pursuant to Section 7 of Article XI of the California Constitution, a city, county, or city and county may adopt ordinances that establish additional standards, requirements, and regulations for local licenses and permits for commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, testing, security, and worker protections established by the state shall be the minimum standards for all licensees statewide. (b) For facilities issued a state license that are located within the incorporated area of a city, the city shall have full power and authority to enforce this chapter and the regulations promulgated by the bureau or any licensing authority, if delegated by the state. Notwithstanding Sections 101375,101400, and 101405 of the Health and Safety Code or any contract entered into pursuant thereto, or any other law, the city shall further assume complete responsibility for any regulatory function relating to those licensees within the city limits that would otherwise be performed by the county or any county officer or employee, including a county health officer, without liability, cost, or expense to the county. (c) Nothing in this chapter, or any regulations promulgated thereunder, shall be deemed to limit the authority or remedies of a city, county, or city and county under any provision of law, including, but not limited to, Section 7 of Article XI of the California Constitution. 19317. (a) The actions of a licensee, its employees, and its agents that are (1) permitted pursuant to both a state license and a license or permit issued by the local jurisdiction following the requirements of the applicable local ordinances, and (2) conducted in accordance with the requirements of this chapter and regulations adopted pursuant to this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law. (b) The actions of a person who, in good faith, allows his or her property to be used by a licensee, its employees, and its agents, as permitted pursuant to both a state license and a local license or permit following the requirements of the applicable local ordinances, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law. 87 — 13 — Ch.689 19318. (a) A person engaging in commercial cannabis activity without a license required by this chapter shall be subject to civil penalties of up to twice the amount of the license fee for each violation, and the court may order the destruction of medical cannabis associated with that violation in accordance with Section 11479 of the Health and Safety Code. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section by a licensing authority shall be deposited into the Medical Cannabis Fines and Penalties Account established pursuant to Section 19351. (b) If an action for civil penalties is brought against a licensee pursuant to this chapter by the Attorney General on behalf of the people, the penalty collected shall be deposited into the Medical Cannabis Fines and Penalties Account established pursuant to Section 19351. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, the penalty collected shall be paid to the treasurer of the city or city and county in which the judgment was entered. If the action is brought by a city attorney and is adjudicated in a superior court located in the unincorporated area or another city in the same county, the penalty shall be paid one-half to the treasurer of the city in which the complaining attorney has jurisdiction and one-half to the treasurer of the county in which the judgment is entered. (c) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person engaging in commercial cannabis activity in violation of this chapter, including, but not limited to, those individuals covered under Section 11362.7 of the Health and Safety Code. Article 4. Licensing 19320. (a) Licensing authorities administering this chapter may issue state licenses only to qualified applicants engaging in commercial cannabis activity pursuant to this chapter. Upon the date of implementation of regulations by the licensing authority, no person shall engage in commercial cannabis activity without possessing both a state license and a local permit, license, or other authorization.A licensee shall not commence activity under the authority of a state license until the applicant has obtained, in addition to the state license, a license or permit from the local jurisdiction in which he or she proposes to operate, following the requirements of the applicable local ordinance. (b) Revocation of a local license, permit, or other authorization shall terminate the ability of a medical cannabis business to operate within that local jurisdiction until the local jurisdiction reinstates or reissues the local license, permit, or other required authorization. Local authorities shall notify the bureau upon revocation of a local license. The bureau shall inform relevant licensing authorities. 87 Ch. 689 — 14 — (c) Revocation of a state license shall terminate the ability of a medical cannabis licensee to operate within California until the licensing authority reinstates or reissues the state license. Each licensee shall obtain a separate license for each location where it engages in commercial medical cannabis activity. However, transporters only need to obtain licenses for each physical location where the licensee conducts business while not in transport, or any equipment that is not currently transporting medical cannabis or medical cannabis products, permanently resides. (d) In addition to the provisions of this chapter, local jurisdictions retain the power to assess feet and taxes, as applicable, on facilities that arc licensed pursuant to this chapter and the business activities of those licensees. (e) Nothing in this chapter shall be construed to supersede or limit state agencies, including the State Water Resources Control Board and Department of Fish and Wildlife, from establishing fees to support their medical cannabis regulatory programs. 19321. (a) The Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health shall promulgate regulations for implementation of their respective responsibilities in the administration of this chapter. (b) A license issued pursuant to this section shall be valid for 12 months from the date of issuance. The license shall be renewed annually. Each licensing authority shall establish procedures for the renewal of a license. (c) Notwithstanding subdivision (a) of Section 19320, a facility or entity that is operating in compliance with local zoning ordinances and other state and local requirements on or before January 1, 2018, may continue its operations until its application for licensure is approved or denied pursuant to this chapter. In issuing licenses, the licensing authority shall prioritize any facility or entity that can demonstrate to the authority's satisfaction that it was in operation and in good standing with the local jurisdiction by January 1, 2016. (d) Issuance of a state license or a determination of compliance with local law by the licensing authority shall in no way limit the ability of the City of Los Angeles to prosecute any person or entity for a violation of, or otherwise enforce, Proposition D, approved by the voters of the City of Los Angeles on the May 21, 2013, ballot for the city, or the city's zoning laws. Nor may issuance of a license or determination of compliance with local law by the licensing authority be deemed to establish, or be relied upon, in determining satisfaction with the immunity requirements of Proposition D or local zoning law, in court or in any other context or forum. Article 5. Medical Marijuana Regulation 19326. (a) A person other than a licensed transporter shall not transport medical cannabis or medical cannabis products from one licensee to another licensee, unless otherwise specified in this chapter. 87 — 15 — Ch. 689 (b) All licensees holding cultivation or manufacturing licenses shall send all medical cannabis and medical cannabis products cultivated or manufactured to a distributor, as defined in Section 19300.5, for quality assurance and inspection by the Type 11 licensee and for a batch testing by a Type 8 licensee prior to distribution to a dispensary. Those licensees holding a Type 10A license in addition to a cultivation license or a manufacturing license shall send all medical cannabis and medical cannabis products to a Type 11 licensee for presale inspection and for a batch testing by aType 8 licensee prior to dispensing any product. The licensing authority shall fine a licensee who violates this subdivision in an amount determined by the licensing authority to be reasonable. (c) (1) Upon receipt of medical cannabis or medical cannabis products by a holder of a cultivation or manufacturing license, the Type 11 licensee shall first inspect the product to ensure the identity and quantity of the product and then ensure a random sample of the medical cannabis or medical cannabis product is tested by a Type 8 licensee prior to distributing the batch of medical cannabis or medical cannabis products. (2) Upon issuance of a certificate of analysis by the Type 8 licensee that the product is fit for manufacturing or retail, all medical cannabis and medical cannabis products shall undergo a quality assurance review by the Type 11 licensee prior to distribution to ensure the quantity and content of the medical cannabis or medical cannabis product, and for tracking and taxation purposes by the state. Licensed cultivators and manufacturers shall package or seal all medical cannabis and medical cannabis products in tamper -evident packaging and use a unique identifier, as prescribed by the Department of Food and Agriculture, for the purpose of identifying and tracking medical cannabis or medical cannabis products. Medical cannabis and medical cannabis products shall be labeled as required by Section 19347. All packaging and sealing shall be completed prior to medical cannabis or medical cannabis products being transported or delivered to a licensee, qualified patient, or caregiver. (3) This section does not limit the ability of licensed cultivators, manufacturers, and dispensaries to directly enter into contracts with one another indicating the price and quantity of medical cannabis or medical cannabis products to be distributed. However, aType 11 licensee responsible for executing the contract is authorized to collect a fee for the services rendered, including, but not limited to, costs incurred by a Type 8 licensee, as well as applicable state or local taxes and fees. (d) Medical cannabis and medical cannabis products shall be tested by a registered testing laboratory, prior to retail sale or dispensing, as follows: (1) Medical cannabis from dried flower shall, at a minimum, be tested for concentration, pesticides, mold, and other contaminants. (2) Medical cannabis extracts shall, at a minimum, be tested for concentration and purity of the product. (3) This chapter shall not prohibit a licensee from performing on -site testing for the purposes of quality assurance of the product in conjunction 87 Ch. 689 - 16 - with reasonable business operations. On -site testing by the licensee shall not be certified by the State Department of Public Health. (e) All commercial cannabis activity shall be conducted between licensees, when these are available. 19327. (a) A licensee shall keep accurate records of commercial cannabis activity. (b) All records related to commercial cannabis activity as defined by the licensing authorities shall be maintained for a minimum of seven years. (c) The bureau may examine the books and records of a licensee and inspect the premises of a licensee as the licensing authority or a state or local agency deems necessary to perform its duties under this chapter. All inspections shall be conducted during standard business hours of the licensed facility or at any other reasonable time. (d) Licensees shall keep records identified by the licensing authorities on the premises of the location Iicensed.The licensing authorities may make any examination of the records of any licensee. Licensees shall also provide and deliver copies of documents to the licensing agency upon request. (e) A licensee or its agent, or employee, that refuses, impedes, obstructs, or interferes with an inspection of the premises or records of the licensee pursuant to this section has engaged in a violation of this chapter. (f) If a licensee or an employee of a licensee fails to maintain or provide the records required pursuant to this section, the licensee shall be subject to a citation and fine of thirty thousand dollars ($30,000) per individual violation. 19328. (a) A licensee may only hold a state license in up to two separate license categories, as follows: (1) Type 1, 1A, 1B, 2, 2A, or 2B licensees may also hold either a Type 6 or 7 state license. (2) Type 6 or 7 licensees, or a combination thereof, may also hold either a Type 1, 1A, 1B, 2, 2A, or 2B state license. (3) Type 6 or 7 licensees, or a combination thereof, may also hold a Type 10A state license. (4) Type 10A licensees may also hold either a Type 6 or 7 state license, or a combination thereof. (5) Type 1, 1A, 1B, 2, 2A, or 2B licensees, or a combination thereof, may also hold a Type 10A state license. (6) Type 10A licensees may apply for Type 1, 1A, 1B, 2, 2A, or 2B state license, or a combination thereof. (7) Type 11 licensees shall apply for a Type 12 state license, but shall not apply for any other type of state license. (8) Type 12 licensees may apply for a Type 11 state license. (9) A Type 10A licensee may apply for a Type 6 or 7 state license and hold a 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination thereof if, under the 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination of licenses thereof, no more than four acres of total canopy size of cultivation by the licensee is occurring throughout the state during the period that the respective licenses 87 -17— Ch.689 are valid. All cultivation pursuant to this section shall comply with local ordinances. This paragraph shall become inoperative on January 1, 2026. (b) Except as provided in subdivision (a), a person or entity that holds a state license is prohibited from licensure for any other activity authorized under this chapter, and is prohibited from holding an ownership interest in real property, personal property, or other assets associated with or used in any other license category. (c) (1) In a jurisdiction that adopted a local ordinance, prior to July 1, 2015, allowing or requiring qualified businesses to cultivate, manufacture, and dispense medical cannabis or medical cannabis products, with all commercial cannabis activity being conducted by a single qualified business, upon licensure that business shall not be subject to subdivision (a) if it meets all of the following conditions: (A) The business was cultivating, manufacturing, and dispensing medical cannabis or medical cannabis products on July 1, 2015, and has continuously done so since that date. (B) The business has been in full compliance with all applicable local ordinances at all times prior to licensure. (C) The business is registered with the State Board of Equalization. (2) A business licensed pursuant to paragraph (1) is not required to conduct all cultivation or manufacturing within the bounds of a local jurisdiction, but all cultivation and manufacturing shall have commenced prior to July 1, 2015, and have been in full compliance with applicable local ordinances. (d) This section shall remain in effect only until January 1, 2026, and as of that date is repealed. 19329. A licensee shall not also be licensed as a retailer of alcoholic beverages pursuant to Division 9 (commencing with Section 23000). 19330. This chapter and Article 2 (commencing with Section 11357) and Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code shall not interfere with an employer's rights and obligations to maintain a drug and alcohol free workplace or require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growth of cannabis in the workplace or affect the ability of employers to have policies prohibiting the use of cannabis by employees and prospective employees, or prevent employers from complying with state or federal law. Article 7. Licensed Distributors, Dispensaries, and Transporters 19334. (a) State licenses to be issued by the Department of Consumer Affairs are as follows: (1) "Dispensary," as defined in this chapter. This license shall allow for delivery pursuant to Section 19340. (2) "Distributor;' for the distribution of medical cannabis and medical cannabis products from manufacturer to dispensary. A Type 11 licensee 87 Ch. 689 — 18 — shall hold a Type 12, or transporter, license and register each location where product is stored for the purposes of distribution. A Type 11 licensee shall not hold a license in a cultivation, manufacturing, dispensing, or testing license category and shall not own, or have an ownership interest in, a facility licensed in those categories other than a security interest, lien, or encumbrance on property that is used by a licensee. A Type 11 licensee shall be bonded and insured at a minimum level established by the licensing authority. (3) "Transport," for transporters of medical cannabis or medical cannabis products between licensees.A Type 12 licensee shall be bonded and insured at a minimum level established by the licensing authority. (4) "Special dispensary status" for dispensers who have no more than three licensed dispensary facilities. This license shall allow for delivery where expressly authorized by local ordinance. (b) The bureau shall establish minimum security requirements for the commercial transportation and delivery of medical cannabis and products. (c) A licensed dispensary shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing medical cannabis or medical cannabis products and theft of medical cannabis or medical cannabis products at the dispensary. These security measures shall include, but not be limited to, all of the following: (1) Preventing individuals from remaining on the premises of the dispensary if they are not engaging in activity expressly related to the operations of the dispensary. (2) Establishing limited access areas accessible only to authorized dispensary personnel. (3) Storing all finished medical cannabis and medical cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes, samples, or immediate sale. (d) A dispensary shall notify the licensing authority and the appropriate law enforcement authorities within 24 hours after discovering any of the followi ng: (1) Significant discrepancies identified during inventory. The level of significance shall be determined by the bureau. (2) Diversion, theft, loss, or any criminal activity involving the dispensary or any agent or employee of the dispensary. (3) The loss or unauthorized alteration of records related to cannabis, registered qualifying patients, primary caregivers, or dispensary employees or agents. (4) Any other breach of security. 87 — 19 — Ch. 689 Article 9. Delivery 19340. (a) Deliveries, as defined in this chapter, can only be made by a dispensary and in a city, county, or city and county that does not explicitly prohibit it by local ordinance. (b) Upon approval of the licensing authority, a licensed dispensary that delivers medical cannabis or medical cannabis products shall comply with both of the following: (1) The city, county, or city and county in which the licensed dispensary is located, and in which each delivery is made, do not explicitly by ordinance prohibit delivery, as defined in Section 19300.5. (2) All employees of a dispensary delivering medical cannabis or medical cannabis products shall carry a copy of the dispensary's current license authorizing those services with them during deliveries and the employee's government -issued identification, and shall present that license and identification upon request to state and local law enforcement, employees of regulatory authorities, and other state and local agencies enforcing this chapter. (c) A county shall have the authority to impose a tax, pursuant to Article 11 (commencing with Section 19348), on each delivery transaction completed by a licensee. (d) During delivery, the licensee shall maintain a physical copy of the delivery request and shall make it available upon request of the licensing authority and law enforcement officers. The delivery request documentation shall comply with state and federal law regarding the protection of confidential medical information. (e) The qualified patient or primary caregiver requesting the delivery shall maintain a copy of the delivery request and shall make it available, upon request, to the licensing authority and law enforcement officers. (f) A local jurisdiction shall not prevent carriage of medical cannabis or medical cannabis products on public roads by a licensee acting in compliance with this chapter. Article 10. Licensed Manufacturers and Licensed Laboratories 19341. The State Department of Public Health shall promulgate regulations governing the licensing of cannabis manufacturers and testing laboratories. Licenses to be issued are as follows: (a) "Manufacturing level 1," for manufacturing sites that produce medical cannabis products using nonvolatile solvents. (b) "Manufacturing level 2;' for manufacturing sites that produce medical cannabis products using volatile solvents. The State Department of Public Health shall limit the number of licenses of this type. (c) "Testing;' for testing of medical cannabis and medical cannabis products. Testing licensees shall have their facilities licensed according to regulations set forth by the division. A testing licensee shall not hold a 87 Ch. 689 — 20 — license in another license category of this chapter and shall not own or have ownership interest in a facility licensed pursuant to this chapter. 19342. (a) For the purposes of testing medical cannabis or medical cannabis products, licensees shall use a licensed testing laboratory that has adopted a standard operating procedure using methods consistent with general requirements for the competence of testing and calibration activities, including sampling, using standard methods established by the International Organization for Standardization, specifically ISO/IEC 17020 and ISO/IEC 17025 to test medical cannabis and medical cannabis products that are approved by an accrediting body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement. (b) An agent of a licensed testing laboratory shall obtain samples according to a statistically valid sampling method for each lot. (c) A licensed testing laboratory shall analyze samples according to either of the following: (1) The most current version of the cannabis inflorescence monograph published by the American Herbal Pharmacopoeia. (2) Scientifically valid methodology that is demonstrably equal or superior to paragraph (1), in the opinion of the accrediting body. (d) If a test result falls outside the specifications authorized by law or regulation, the licensed testing laboratory shall follow a standard operating procedure to confirm or refute the original result. (e) A licensed testing laboratory shall destroy the remains of the sample of medical cannabis or medical cannabis product upon completion of the analysis. 19343. A licensed testing laboratory shall not handle, test, or analyze medical cannabis or medical cannabis products unless the licensed testing laboratory meets all of the following: (a) Is registered by the State Department of Public Health. (b) Is independent from all other persons and entities involved in the medical cannabis industry. (c) Follows the methodologies, ranges, and parameters that are contained in the scope of the accreditation for testing medical cannabis or medical cannabis products. The testing lab shall also comply with any other requirements specified by the State Department of Public Health. (d) Notifies the State Department of Public Health within one business day after the receipt of notice of any kind that its accreditation has been denied, suspended, or revoked. (e) Has established standard operating procedures that provide for adequate chain of custody controls for samples transferred to the licensed testing laboratory for testing. 19344. (a) A licensed testing laboratory shall issue a certificate of analysis for each lot, with supporting data, to report both of the following: (1) Whether the chemical profile of the lot conforms to the specifications of the lot for compounds, including, but not limited to, all of the following: (A) Tetrahydrocannabinol (THC). (B) Tetrahydrocannabinolic Acid (THCA). 87 — 21 — Ch. 689 (C) Cannabidiol (CBD). (D) Cannabidiolic Acid (CBDA). (E) The terpenes described in the most current version of the cannabis inflorescence monograph published by the American Herbal Pharmacopoeia. (F) Cannabigerol (CBG). (G) Cannabinol (CBN). (H) Any other compounds required by the State Department of Public Health. (2) That the presence of contaminants does not exceed the levels that are the lesser of either the most current version of the American Herbal Pharmacopoeia monograph or the State Department of Public Health. For purposes of this paragraph, contaminants includes, but is not limited to, all of the following: (A) Residual solvent or processing chemicals. (B) Foreign material, including, but not limited to, hair, insects, or similar or related adulterant. (C) Microbiological impurity, including total aerobic microbial count, total yeast mold count, P. aeruginosa, aspergillus spp., s. aureus, aflatoxin B1, B2, G1, or G2, or ochratoxin A. (D) Whether the batch is within specification for odor and appearance. (b) Residual levels of volatile organic compounds shall be below the lesser of either the specifications set by the United States Pharmacopeia (U.S.P. Chapter 467) or those set by the State Department of Public Health. 19345. (a) Except as provided in this chapter, a licensed testing laboratory shall not acquire or receive medical cannabis or medical cannabis products except from a licensed facility in accordance with this chapter, and shall not distribute, sell, deliver, transfer, transport, or dispense medical cannabis or medical cannabis products, from which the medical cannabis or medical cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. (b) A licensed testing laboratory may receive and test samples of medical cannabis or medical cannabis products from a qualified patient or primary caregiver only if he or she presents his or her valid recommendation for cannabis for medical purposes from a physician.A licensed testing laboratory shall not certify samples from a qualified patient or caregiver for resale or transfer to another party or licensee. All tests performed by a licensed testing laboratory for a qualified patient or caregiver shall be recorded with the name of the qualified patient or caregiver and the amount of medical cannabis or medical cannabis product received. (c) The State Department of Public Health shall develop procedures to ensure that testing of cannabis occurs prior to delivery to dispensaries or any other business, specify how often licensees shall test cannabis and that the cost of testing shall be borne by the licensed cultivators, and require destruction of harvested batches whose testing samples indicate noncompliance with health and safety standards promulgated by the State Department of Public Health, unless remedial measures can bring the 87 Ch. 689 — 22 — cannabis into compliance with quality assurance standards as promulgated by the State Department of Public Health. (d) The State Department of Public Health shall establish a licensing fee, and laboratories shall pay a fee to be licensed. Licensing fees shall not exceed the reasonable regulatory cost of the licensing activities. 19347. (a) Prior to delivery or sale at a dispensary, medical cannabis products shall be labeled and in a tamper -evident package. Labels and packages of medical cannabis products shall meet the following requirements: (1) Medical cannabis packages and labels shall not be made to be attractive to children. (2) All medical cannabis product labels shall include the following information, prominently displayed and in a clear and legible font: (A) Manufacture date and source. (B) The statement "SCHEDULE I CONTROLLED SUBSTANCE." (C) The statement "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in bold print. (D) The statement "FOR MEDICAL USE ONLY." (E) The statement "THE INTOXICATING EH-ECTS OF THIS PRODUCT MAY BE DELAYED BY UP TO TWO HOURS." (F) The statement "THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE OR OPERATE MACHINERY. PLEASE USE EXTREME CAUTION?' (G) For packages containing only dried flower, the net weight of medical cannabis in the package. (H) A warning if nuts or other known allergens are used. (I) List of pharmacologically active ingredients, including, but not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content, the THC and other cannabinoid amount in milligrams per serving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total. (J) Clear indication, in bold type, that the product contains medical cannabis. (K) Identification of the source and date of cultivation and manufacture. (L) Any other requirement set by the bureau. (M) Information associated with the unique identifier issued by the Department of Food and Agriculture pursuant to Section 11362.777 of the Health and Safety Code. (b) Only generic food names may be used to describe edible medical cannabis products. Article 14. Reporting 19353. Beginning on March 1, 2023, and on or before March 1 of each following year, each licensing authority shall prepare and submit to the Legislature an annual report on the authority's activities and post the report 87 — 23 — Ch.689 on the authority's Internet Web site. The report shall include, but not be limited to, the following information for the previous fiscal year: (a) The amount of funds allocated and spent by the licensing authority for medical cannabis licensing, enforcement, and administration. (b) The number of state licenses issued, renewed, denied, suspended, and revoked, by state license category. (c) The average time for processing state license applications, by state Iicense category. (d) The number and type of enforcement activities conducted by the licensing authorities and by local law enforcement agencies in conjunction with the licensing authorities or the bureau. (e) The number, type, and amount of penalties, fines, and other disciplinary actions taken by the licensing authorities. 19354. The bureau shall contract with the California Marijuana Research Program, known as the Center for Medicinal Cannabis Research, authorized pursuant to Section 11362.9 of the Health and Safety Code, to develop a study that identifies the impact that cannabis has on motor skills. Article 15. Privacy 19355. (a) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by the office or licensing authorities for the purposes of administering this chapter are confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this chapter, or a local ordinance. (b) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by the bureau for the purposes of administering this chapter shall be maintained in accordance with Chapter 1 (commencing with Section 123100) of Part 1 of Division 106 of the Health and Safety Code, Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code, and other state and federal laws relating to confidential patient information. (c) Nothing in this section precludes the following: (1) Employees of the bureau or any licensing authorities notifying state or local agencies about information submitted to the agency that the employee suspects is falsified or fraudulent. (2) Notifications from the bureau or any licensing authorities to state or local agencies about apparent violations of this chapter or applicable local ordinance. (3) Verification of requests by state or local agencies to confirm licenses and certificates issued by the regulatory authorities or other state agency. 87 Ch. 689 — 24 — (4) Provision of information requested pursuant to a court order or subpoena issued by a court or an administrative agency or local governing body authorized by law to issue subpoenas. (d) Information shall not be disclosed by any state or local agency beyond what is necessary to achieve the goals of a specific investigation, notification, or the parameters of a specific court order or subpoena. SEC. 5. Section 9147.7 of the Government Code is amended to read: 9147.7. (a) For the purpose of this section, "eligible agency" means any agency, authority, board, bureau, commission, conservancy, council, department, division, or office of state government, however denominated, excluding an agency that is constitutionally created or an agency related to postsecondary education, for which a date for repeal has been established by statute on or after January 1, 2011. (b) The Joint Sunset Review Committee is hereby created to identify and eliminate waste, duplication, and inefficiency in government agencies. The purpose of the committee is to conduct a comprehensive analysis over 15 years, and on a periodic basis thereafter, of every eligible agency to determine if the agency is still necessary and cost effective. (c) Each eligible agency scheduled for repeal shall submit to the committee, on or before December 1 prior to the year it is set to be repealed, a complete agency report covering the entire period since last reviewed, including, but not limited to, the following: (1) The purpose and necessity of the agency. (2) A description of the agency budget, priorities, and job descriptions of employees of the agency. (3) Any programs and projects under the direction of the agency. (4) Measures of the success or failures of the agency and justifications for the metrics used to evaluate successes and failures. (5) Any recommendations of the agency for changes or reorganization in order to better fulfill its purpose. (d) The committee shall take public testimony and evaluate the eligible agency prior to the date the agency is scheduled to be repealed. An eligible agency shall be eliminated unless the Legislature enacts a law to extend, consolidate, or reorganize the eligible agency. No eligible agency shall be extended in perpetuity unless specifically exempted from the provisions of this section. The committee may recommend that the Legislature extend the statutory sunset date for no more than one year to allow the committee more time to evaluate the eligible agency. (e) The committee shall be comprised of 10 members of the Legislature. The Senate Committee on Rules shall appoint five members of the Senate to the committee, not more than three of whom shall be members of the same political party. The Speaker of the Assembly shall appoint five members of the Assembly to the committee, not more than three of whom shall be members of the same political party. Members shall be appointed within 15 days after the commencement of the regular session. Each member of the committee who is appointed by the Senate Committee on Rules or the Speaker of the Assembly shall serve during that committee member's 87 — 25 — Ch. 689 term of office or until that committee member no longer is a Member of the Senate or the Assembly, whichever is applicable. A vacancy on the committee shall be filled in the same manner as the original appointment. Three Assembly Members and three Senators who are members of the committee shall constitute a quorum for the conduct of committee business. Members of the committee shall receive no compensation for their work with the committee. • (f) The committee shall meet not later than 30 days after the first day ofl; ` the regular session to choose a chairperson and to establish the schedule for eligible agency review provided for in the statutes governing the. eligible, `'°. agencies. The chairperson of the committee shall alternate every two years between a Member of the Senate and a Member of the Assembly, and the vice chairperson of the committee shall be a member of the opposite house as the chairperson. (g) This section shall not be construed to change the existing jurisdiction of the budget or policy committees of the Legislature. (h) This section shall not apply to the Bureau of Medical Marijuana Regulation. SEC. 6. Section 11362.775 of the Health and Safety Code is amended to read: 11362.775. (a) Subject to subdivision (b), qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate within the State of California in order collectively or cooperatively to cultivate cannabis for medical purposes, shall not solely on the basis of that fact be subject to state criminal sanctions under Section 11357, 11358, 11359, 11360,11366, 11366.5, or 11570. (b) This section shall remain in effect only until one year after the Bureau of Medical Marijuana Regulation posts a notice on its Internet Web site that the licensing authorities have commenced issuing licenses pursuant to the Medical Marijuana Regulation and Safety Act (Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code), and is repealed upon issuance of licenses. SEC. 7. Section 147.5 is added to the Labor Code, to read: 147.5. (a) By January 1, 2017, the Division of Occupational Safety and Health shall convene an advisory committee to evaluate whether there is a need to develop industry -specific regulations related to the activities of facilities issued a license pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code. (b) By July 1, 2017, the advisory committee shall present to the board its findings and recommendations for consideration by the board. By July 1, 2017, the board shall render a decision regarding the adoption of industry -specific regulations pursuant to this section. SEC. 8. Section 31020 is added to the Revenue and Taxation Code, to read: 31020. The board, in consultation with the Department of Food and Agriculture, shall adopt a system for reporting the movement of commercial 87 Ch. 689 — 26 — cannabis and cannabis products throughout the distribution chain. The system shall not be duplicative of the electronic database administered by the Department of Food and Agriculture specified in Section 19335 of the Business and Professions Code. The system shall also employ secure packaging and be capable of providing information to the board. This system shall capture, at a minimum, all of the following: (a) The amount of tax due by the designated entity. (b) The name, address, and license number of the designated entity that remitted the tax. (c) The name, address, and license number of the succeeding entity receiving the product. (d) The transaction date. (e) Any other information deemed necessary by the board for the taxation and regulation of marijuana and marijuana products. SEC. 9. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 10. The Legislature finds and declares that Section 4 of this act, which adds Section 19355 to the Business and Professions Code, thereby imposes a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: The limitation imposed under this act is necessary for purposes of compliance with the federal Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Sec. 1320d et seq.), the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code), and the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Part 2 of Division 1 of the Insurance Code). SEC. 11. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. SEC. 12. This act shall become operative only if Senate Bill 643 and Assembly Bill 243 of the 2015-16 Regular Session are also enacted and become operative. 0 87 STATE OF CALIFORNIA LLGIsuTM AUTHENTICATED OUNS[I U0.GU ELECTRONIC LEC.ALMATERIAL Assembly Bill No. 243 CHAPTER 688 An act to add Article 6 (commencing with Section 19331), Article 13 (commencing with Section 19350), and Article 17 (commencing with Section 19360) to Chapter 3.5 of Division 8 of the Business and Professions Code, to add Section 12029 to the Fish and Game Code, to add Sections 11362.769 and 11362.777 to the Health and Safety Code, and to add Section 13276 to the Water Code, relating to medical marijuana, and making an appropriation therefor. [Approved by Governor October 9, 2015. Filed with Secretary of State October 9.2015.1 LEGISLATIVE COUNSEL'S DIGEST AB 243, Wood. Medical marijuana. Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, authorizes the use of marijuana for medical purposes. Existing law enacted by the Legislature requires the establishment of a program for the issuance of identification cards to qualified patients so that they may lawfully use marijuana for medical purposes, and requires the establishment of guidelines for the lawful cultivation of marijuana grown for medical use. Existing law provides for the licensure of various professions by boards or bureaus within the Department of Consumer Affairs. Existing law, the Sherman Food, Drug, and Cosmetic Law, provides for the regulation of food, drugs, devices, and cosmetics, as specified. A violation of that law is a crime. This bill would require the Department of Food and Agriculture, the Department of Pesticide Regulation, the State Department of Public Health, the Department of Fish and Wildlife, and the State Water Resources Control Board to promulgate regulations or standards relating to medical marijuana and its cultivation, as specified. The bill would also require various state agencies to take specified actions to mitigate the impact that marijuana cultivation has on the environment. By requiring cities, counties, and their local law enforcement agencies to coordinate with state agencies to enforce laws addressing the environmental impacts of medical marijuana cultivation, and by including medical marijuana within the Sherman Act, the bill would impose a state -mandated local program. This bill would require a state licensing authority to charge each licensee under the act a licensure and renewal fee, as applicable, and would further require the deposit of those collected fees into an account specific to that licensing authority in the Medical Marijuana Regulation and Safety Act Fund, which this bill would establish. This bill would impose certain fines 89 } Ch. 688 — 2 — and civil penalties for specified violations of the Medical Marijuana Regulation and Safety Act, and would require moneys collected as a result of these fines and civil penalties to be deposited into the Medical Cannabis Fines and Penalties Account, which this bill would establish within the fund. Moneys in the fund and each account of the fund would be available upon appropriation of the Legislature. This bill would authorize the Director of Finance to provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund of up to $10,000,000, and would appropriate $10,000,000 from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the bureau. This bill would provide that its provisions are severable. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. This bill would become operative only if AB 266 and SB 643 of the 2015-16 Regular Session are enacted and take effect on or before January 1, 2016. Appropriation: yes. The people of the State of California do enact as follows: SECTION 1. Article 6 (commencing with Section 19331) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read: Article 6. Licensed Cultivation Sites 19331. The Legislature finds and declares all of the following: (a) The United States Environmental Protection Agency has not established appropriate pesticide tolerances for, or permitted the registration and lawful use of, pesticides on cannabis crops intended for human consumption pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.). (b) The use of pesticides is not adequately regulated due to the omissions in federal law, and cannabis cultivated in California for California patients can and often does contain pesticide residues. (c) Lawful California medical cannabis growers and caregivers urge the Department of Pesticide Regulation to provide guidance, in absence of federal guidance, on whether the pesticides currently used at most cannabis 89 — 3 — Ch. 688 cultivation sites are actually safe for use on cannabis intended for human consumption. 19332. (a) The Department of Food and Agriculture shall promulgate regulations governing the licensing of indoor and outdoor cultivation sites. (b) The Department of Pesticide Regulation, in consultation with the Department of Food and Agriculture, shall develop standards for the use of pesticides in cultivation, and maximum tolerances for pesticides and other foreign object residue in harvested cannabis. (c) The State Department of Public Health shall develop standards for the production and labeling of all edible medical cannabis products. (d) The Department of Food and Agriculture, in consultation with the Department of Fish and Wildlife and the State Water Resources Control Board, shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. (e) The Department of Food and Agriculture shall have the authority necessary for the implementation of the regulations it adopts pursuant to this chapter. The regulations shall do all of the following: (1) Provide that weighing or measuring devices used in connection with the sale or distribution of medical cannabis are required to meet standards equivalent to Division 5 (commencing with Section 12001). (2) Require that cannabis cultivation by licensees is conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, agricultural discharges, and similar matters. Nothing in this chapter, and no regulation adopted by the department, shall be construed to supersede or limit the authority of the State Water Resources Control Board, regional water quality control boards, or the Department of Fish and Wildlife to implement and enforce their statutory obligations or to adopt regulations to protect water quality, water supply, and natural resources. (3) Establish procedures for the issuance and revocation of unique identifiers for activities associated with a cannabis cultivation license, pursuant to Article 8 (commencing with Section 19337). A11 cannabis shall be labeled with the unique identifier issued by the Department of Food and Agriculture. (4) Prescribe standards, in consultation with the bureau, for the reporting of information as necessary related to unique identifiers, pursuant to Article 8 (commencing with Section 19337). (f) The Department of Pesticide Regulation, in consultation with the State Water Resources Control Board, shall promulgate regulations that require that the application of pesticides or other pest control in connection with the indoor or outdoor cultivation of medical cannabis meets standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations. (g) State cultivator license types issued by the Department of Food and Agriculture include: 89 Ch. 688 — 4 — (1) Type 1, or "specialty outdoor," for outdoor cultivation using no artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots. (2) Type 1A, or "specialty indoor;" for indoor cultivation using exclusively artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises. (3) Type 1B, or "specialty mixed -light;" for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of less than or equal to 5,000 square feet of total canopy size on one premises. (4) Type 2, or "small outdoor;" for outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises. (5) Type 2A, or "small indoor," for indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises. (6) Type 2B, or "small mixed -light;" for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises. (7) Type 3, or "outdoor;" for outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (8) Type 3A, or "indoor," for indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (9) Type 3B, or "mixed -light;" for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type. (10) Type 4, or "nursery," for cultivation of medical cannabis solely as a nursery. Type 4 licensees may transport live plants. 19333. An employee engaged in commercial cannabis cultivation activity shall be subject to Wage Order 4-2001 of the Industrial Welfare Commission. SEC. 2. Article 13 (commencing with Section 19350) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read: Article 13. Funding 19350. Each licensing authority shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter, as follows: 89 — 5 — Ch. 688 (a) Each licensing authority shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this chapter. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this chapter as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 19335, but shall not exceed the reasonable regulatory costs to the licensing authority. (b) The total fees assessed pursuant to this chapter shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this chapter. (c) All license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business. (d) The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be established in the Medical Marijuana Regulation and Safety Act Fund. Moneys in the licensing authority fee accounts shall be used, upon appropriation of the Legislature, by the designated licensing authority for the administration of this chapter. 19351. (a) The Medical Marijuana Regulation and Safety Act Fund is hereby established within the State Treasury. Moneys in the fund shall be available upon appropriation by the Legislature. Notwithstanding Section 16305.7 of the Government Code, the fund shall include any interest and dividends earned on the moneys in the fund. (b) (1) Funds for the establishment and support of the regulatory activities pursuant to this chapter shall be advanced as a General Fund or special fund loan, and shall be repaid by the initial proceeds from fees collected pursuant to this chapter or any rule or regulation adopted pursuant to this chapter, by January 1, 2022. Should the initial proceeds from fees not be sufficient to repay the loan, moneys from the Medical Cannabis Fines and Penalties Account shall be made available to the bureau, by appropriation of the Legislature, to repay the loan. (2) Funds advanced pursuant to this subdivision shall be appropriated to the bureau, which shall distribute the moneys to the appropriate licensing authorities, as necessary to implement the provisions of this chapter. (3) The Director of Finance may provide an initial operating loan from the General Fund to the Medical Marijuana Regulation and Safety Act Fund that does not exceed ten million dollars ($10,000,000). (c) Except as otherwise provided, all moneys collected pursuant to this chapter as a result of fines or penalties imposed under this chapter shall be deposited directly into the Medical Marijuana Fines and Penalties Account, which is hereby established within the fund, and shall be available, upon appropriation by the Legislature to the bureau, for the purposes of funding the enforcement grant program pursuant to subdivision (d). (d) (1) The bureau shall establish a grant program to allocate moneys from the Medical Cannabis Fines and Penalties Account to state and local entities for the following purposes: 89 Ch. 688 — 6 — (A) To assist with medical cannabis regulation and the enforcement of this chapter and other state and local laws applicable to cannabis activities. (B) For allocation to state and local agencies and law enforcement to remedy the environmental impacts of cannabis cultivation. (2) The costs of the grant program under this subdivision shall, upon appropriation by the Legislature, be paid for with moneys in the Medical Cannabis Fines and Penalties Account. (3) The grant program established by this subdivision shall only be implemented after the loan specified in this section is repaid. 19352. The sum of ten million dollars ($10,000,000) is hereby appropriated from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the Bureau of Medical Marijuana Regulation. Funds appropriated pursuant to this section shall not include moneys received from fines or penalties. SEC. 3. Article 17 (commencing with Section 19360) is added to Chapter 3.5 of Division 8 of the Business and Professions Code, to read: Article 17. Penalties and Violations 19360. (a) A person engaging in cannabis activity without a license and associated unique identifiers required by this chapter shall be subject to civil penalties of up to twice the amount of the license fee for each violation, and the department, state or local authority, or court may order the destruction of medical cannabis associated with that violation. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section shall be deposited into the Marijuana Production and Environment Mitigation Fund established pursuant to Section 31013 of the Revenue and Taxation Code. (b) If an action for civil penalties is brought against a licensee pursuant to this chapter by the Attorney General, the penalty collected shall be deposited into the General Fund. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, the penalty collected shall be paid to the treasurer of the city or city and county in which the judgment was entered. If the action is brought by a city attorney and is adjudicated in a superior court located in the unincorporated area or another city in the same county, the penalty shall be paid one-half to the treasurer of the city in which the complaining attorney has jurisdiction and one-half to the treasurer of the county in which the judgment is entered. (c) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person or entity engaging in cannabis activity in violation of this chapter, including, but not limited to, those individuals covered under Section 11362.7 of the Health and Safety Code. SEC. 4. Section 12029 is added to the Fish and Game Code, to read: 12029. (a) The Legislature finds and declares all of the following: 89 — 7 — Ch. 688 (1) The environmental impacts associated with marijuana cultivation have increased, and unlawful water diversions for marijuana irrigation have a detrimental effect on fish and wildlife and their habitat, which are held in trust by the state for the benefit of the people of the state. (2) The remediation of existing marijuana cultivation sites is often complex and the permitting of these sites requires greater department staff time and personnel expenditures. The potential for marijuana cultivation sites to significantly impact the state's fish and wildlife resources requires immediate action on the part of the department's lake and streambed alteration permitting staff. (b) In order to address unlawful water diversions and other violations of the Fish and Game Code associated with marijuana cultivation, the department shall establish the watershed enforcement program to facilitate the investigation, enforcement, and prosecution of these offenses. (c) The department, in coordination with the State Water Resources Control Board, shall establish a permanent multiagency task force to address the environmental impacts of marijuana cultivation. The multiagency task force, to the extent feasible and subject to available Resources, shall expand its enforcement efforts on a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on fish and wildlife and their habitats throughout the state. (d) In order to facilitate the remediation and permitting of marijuana cultivation sites, the department shall adopt regulations to enhance the fees on any entity subject to Section 1602 for marijuana cultivation sites that require remediation. The fee schedule established pursuant to this subdivision shall not exceed the fee limits in Section 1609. SEC. 5. Section 11362.769 is added to the Health and Safety Code, to read: 11362.769. Indoor and outdoor medical marijuana cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies shall address environmental impacts of medical marijuana cultivation and shall coordinate, when appropriate, with cities and counties and their law enforcement agencies in enforcement efforts. SEC. 6. Section 11362.777 is added to the Health and Safety Code, to read: 11362.777. (a) The Department of Food and Agriculture shall establish a Medical Cannabis Cultivation Program to be administered by the secretary, except as specified in subdivision (c), shall administer this section as it pertains to the cultivation of medical marijuana. For purposes of this section and Chapter 3.5 (commencing with Section 19300) of the Business and Professions Code, medical cannabis is an agricultural product. 89 Ch. 688 — 8 — (b) (1) A person or entity shall not cultivate medical marijuana without first obtaining both of the following: (A) A license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur. (B) A state license issued by the department pursuant to this section. (2) A person or entity shall not submit an application for a state license issued by the department pursuant to this section unless that person or entity has received a license, permit, or other entitlement, specifically permitting cultivation pursuant to these provisions, from the city, county, or city and county in which the cultivation will occur. (3) A person or entity shall not submit an application for a state license issued by the department pursuant to this section if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the city, county, or city and county in which the cultivation is proposed to occur, either expressly or otherwise under principles of permissive zoning. (c) (1) Except as otherwise specified in this subdivision, and without limiting any other local regulation, a city, county, or city and county, through its current or future land use regulations or ordinance, may issue or deny a permit to cultivate medical marijuana pursuant to this section.A city, county, or city and county may inspect the intended cultivation site for suitability prior to issuing a permit. After the city, county, or city and county has approved a permit, the applicant shall apply for a state medical marijuana cultivation license from the department. A locally issued cultivation permit shall only become active upon licensing by the department and receiving final local approval. A person shall not cultivate medical marijuana prior to obtaining both a permit from the city, county, or city and county and a state medical marijuana cultivation license from the department. (2) A city, county, or city and county that issues or denies conditional licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary. (3) A city, county, or city and county's locally issued conditional permit requirements must be at least as stringent as the department's state licensing requi rements. (4) If a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana, either expressly or otherwise under principles of permissive zoning, or chooses not to administer a conditional permit program pursuant to this section, then commencing March 1, 2016, the division shall be the sole licensing authority for medical marijuana cultivation applicants in that city, county, or city and county. (d) (1) The secretary may prescribe, adopt, and enforce regulations relating to the implementation, administration, and enforcement of this part, including, but not limited to, applicant requirements, collections, reporting, refunds, and appeals. 89 — 9 — Ch. 688 (2) The secretary may prescribe, adopt, and enforce any emergency regulations as necessary to implement this part. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. (3) The secretary may enter into a cooperative agreement with a county agricultural commissioner to carry out the provisions of this chapter, including, but not limited to, administration, investigations, inspections, licensing and assistance pertaining to the cultivation of medical marijuana. Compensation under the cooperative agreement shall be paid from assessments and fees collected and deposited pursuant to this chapter and shall provide reimbursement to the county agricultural commissioner for associated costs. (e) (1) The department, in consultation with, but not limited to, the Bureau of Medical Marijuana Regulation, the State Water Resources Control Board, and the Department of Fish and Wildlife, shall implement a unique identification program for medical marijuana. In implementing the program, the department shall consider issues, including, but not limited to, water use and environmental impacts. In implementing the program, the department shall ensure that: (A) Individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. (B) Cultivation will not negatively impact springs, riparian wetlands, and aquatic habitats. (2) The department shall establish a program for the identification of permitted medical marijuana plants at a cultivation site during the cultivation period. The unique identifier shall be attached at the base of each plant. A unique identifier, such as, but not limited to, a zip tie, shall be issued for each medical marijuana plant. (A) Unique identifiers will only be issued to those persons appropriately licensed by this section. (B) Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 19335 of the Business and Professions Code. (C) The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each medical marijuana plant. (D) The department may promulgate regulations to implement this section. 89 Ch.688 — 10 — (3) The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons. (f) (1) A city, county, or city and county that issues or denies licenses to cultivate medical marijuana pursuant to this section shall notify the department in a manner prescribed by the secretary. (2) Unique identifiers and associated identifying information administered by a city or county shall adhere to the requirements set by the department and be the equivalent to those administered by the department. (g) This section does not apply to a qualified patient cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 100 square feet and he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. This section does not apply to a primary caregiver cultivating marijuana pursuant to Section 11362.5 if the area he or she uses to cultivate marijuana does not exceed 500 square feet and he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 and does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Section 11362.765. For purposes of this section, the area used to cultivate marijuana shall be measured by the aggregate area of vegetative growth of live marijuana plants on the premises. Exemption from the requirements of this section does not limit or prevent a city, county, or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision, or other activity by the exempt person, or impair the enforcement of that regulation or ban. SEC. 7. Section 13276 is added to the Water Code, to read: 13276. (a) The multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused by marijuana cultivation on public and private lands in California, shall continue its enforcement efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on water quality and on fish and wildlife throughout the state. (b) Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following: (1) Site development and maintenance, erosion control, and drainage features. (2) Stream crossing installation and maintenance. (3) Riparian and wetland protection and management. 89 — 11 — Ch.688 (4) Soil disposal. (5) Water storage and use. (6) Irrigation runoff. (7) Fertilizers and soil. (8) Pesticides and herbicides. (9) Petroleum products and other chemicals. (10) Cultivation -related waste. (11) Refuse and human waste. (12) Cleanup, restoration, and mitigation. SEC. 8. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 9. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. SEC. 10. This measure shall become operative only if both Assembly Bill 266 and Senate Bill 643 of the 2015-16 Regular Session are enacted and become operative. 0 89 T OPEN AGENDA - APPROXIMATELY 8:00 P.M. - PUBLIC COMMENT WELCOME Cathy Nichols, 14 Crest Road West addressed the City Council in opposition to the. proposed ordinance pertaining to restrictions on medical marijuana in the City stating that she feels it takes away people's rights granted under the compassionate use act. Richard Colyear, 35 Crest Road West addressed the City Council regarding the proposed ordinance pertaining to medical marijuana stating that he uses some derivative of marijuana for his sheep. Jim Aichele, 14 Crest Road West addressed the City Council in opposition to the proposed ordinance pertaining to restrictions on medical marijuana in the City. He expressed concern that ordinance was not given proper consideration by the Planning Commission because it was presented by the Assistant City Attorney as a matter that required urgent action. Norm Miller, 4 Chesterfield Road addressed the City Council regarding the need for microphones in the Council Chamber, regarding the proposed ordinance pertaining to medical marijuana and regarding how the City Council handles public comment specifically that feedback is not provided when a person provides comments. As an explanation regarding the proposed ordinance pertaining to medical marijuana, City Attorney Jenkins stated that proposed ordinance will be before the City Council next month. He provided the background and reasoning as to why the matter is being brought before the City Council. He stated that nothing in the proposed ordinance will affect the right of a Rolling Hills resident to posses marijuana for personal use; to drive to a dispensary to purchase medical marijuana and bring it into City; or from ordering marijuana online or by phone from a reputable source and having it delivered by US mail, FedEx, UPS or another means. He further stated that the State legislature passed a bill stating that if cities do not act by March 1, certain regulatory authority would be vested in the State and the cities would lose any and all opportunity to regulate under their own police powers. He further explained that the author of the bill has since said that he did not intend to establish the March 1 deadline and there is a bill currently pending in the legislature that would eliminate the deadline. He stated that if the pending bill is passed and signed by the Governor, the City can take its time in considering this matter. He further provided a brief overview of the proposed ordinance as it relates to delivery and cultivation of medical marijuana. Minutes City Council Meeting 01-25-16