Prior Ordinance History: Ord. 1123-13, Ord. 1146-16
[Ord. 1163-17, eff. December
7, 2017]
(a)
Purpose and Intent. It is the purpose and intent of this chapter
to accommodate the needs of medically-ill persons in need of cannabis
for medical purposes, as advised and recommended by their health care
provider(s), while imposing regulations to protect the City's
neighborhoods, residents, and businesses from negative impacts. It
is a further purpose and intent of this chapter to regulate the cultivation,
manufacturing, processing, testing, transporting, delivery, and distribution
of medical cannabis and medical cannabis-related products in a manner
which is responsible, which protects the health, safety, and welfare
of the residents of Avalon, and to enforce rules and regulations consistent
with state law. In furtherance of these objectives, an annual permit
shall be required in order to own and/or to operate a medical cannabis
delivery service business within the City of Avalon. Nothing in this
Chapter is intended to authorize the possession, use, or provision
of medical cannabis for purposes which violate state or federal law.
The provisions of this Chapter are in addition to any other permits,
licenses and approvals which may be required to conduct business in
the City, and are in addition to any permits, licenses and approval
required under state, county, or other law.
(b)
Legal Authority. Pursuant to §§ 5 and 7 of Article
XI of the California Constitution, and the provisions of the Medical
Cannabis Regulation and Safety Act (hereinafter "MCRSA") as amended
by the Medicinal and Adult-Use Cannabis Regulation and Safety Act
("MAUCRSA"), the City of Avalon is authorized to adopt ordinances
that establish standards, requirements and regulations for local licenses
and permits for cannabis and cannabis-related activity. Any standards,
requirements, and regulations regarding health and safety, security,
and worker protections established by the State of California, or
any of its departments or divisions, shall be the minimum standards
applicable in the City of Avalon to medical cannabis, and/or medical
cannabis-related activity.
(c)
Compliance with Laws. It is the responsibility of the owners
and operators of the medical cannabis delivery service business to
ensure that it is, at all times, operating in a manner compliant with
all applicable state and local laws, and any regulations promulgated
thereunder. Nothing in this chapter shall be construed as authorizing
any actions which violate federal, state law or local law with respect
to the operation of a medical cannabis delivery service business.
It shall be the responsibility of the owners and the operators of
the medical cannabis delivery service business to ensure that the
medical cannabis delivery service business is, at all times, operating
in a manner compliant with all applicable federal, state and local
laws, the 2008 Attorney General Guidelines, any subsequently enacted
state law or regulatory, licensing, or certification requirements,
and any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of the medical cannabis
delivery service business permit. Nothing in this chapter shall be
construed as authorizing any actions which violate federal or state
law with regard to the operation of a medical cannabis delivery service
business.
[Ord. 1163-17, eff. December
7, 2017]
When used in this chapter, the following words shall have the
meanings ascribed to them as set forth herein. Any reference to California
statutes includes any regulations promulgated thereunder, and is deemed
to include any successor or amended version of the referenced statute
or regulatory provision.
Means all parts of the Cannabis sativa Linnaeus, Cannabis
indica, or Cannabis ruderalis, whether growing or not; the seeds thereof;
the resin, whether crude or purified, extracted from any part of the
plant; and every compound, manufacture, salt, derivative, mixture,
or preparation of the plant, its seeds, or resin. "Cannabis" also
means the separated resin, whether crude or purified, obtained from
marijuana. "Cannabis" also means marijuana as defined by § 11018
of the California Health and Safety Code as enacted by Chapter 14017
of the Statutes of 1972. "Cannabis" does not include the mature stalks
of the plant, fiber produced from the stalks, oil or cake made from
the seeds of the plant, any other compound, manufacture, salt, derivative,
mixture, or preparation of the mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of the plant
which is incapable of germination. For the purpose of this Chapter,
"cannabis" does not mean industrial hemp as that term is defined by
§ 81000 of the California Food and Agricultural Code or § 11018.5
of the California Health and Safety Code.
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 § 109935 of the California
Health and Safety Code, or a drug, as defined by § 109925
of the California Health and Safety Code.
Has the same meaning as that term is defined in § 11362.7
of the California Health and Safety Code.
Means the City of Avalon, a California general law City.
Cannabis activity includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, labeling, transportation,
distribution, delivery or sale of marijuana and marijuana products.
Means any activity, whether occurring indoors or outdoors,
involving the propagation, planting, growing, harvesting, drying,
curing, grading, and/or trimming of cannabis plants or any part thereof
for any purpose, including medical marijuana.
Means a facility where medical cannabis is cultivated, propagated,
planted, grown, harvested, dried, cured, graded, or trimmed, or that
does all or any combination of those activities.
Means the commercial transfer of medical cannabis or medical
cannabis products from a dispensary, up to an amount determined to
be authorized by the State of California, or any of its departments
or divisions, to anyone for any medical purpose. "Delivery" also includes
the use by a dispensary of any technology platform owned, controlled,
and/or licensed by the dispensary, or independently licensed by the
State of California under the MAUCRSA (as the same may be amended
from time-to-time), that enables anyone to arrange for or facilitate
the commercial transfer by a licensed dispensary of medical cannabis
or medical cannabis products.
Means a medical cannabis business facility where cannabis,
medical cannabis products, or devices for the use of medical cannabis
or medical cannabis products are offered, either individually or in
any combination, for retail sale, including an establishment (whether
fixed or mobile) that delivers, pursuant to express authorization,
medical cannabis and medical cannabis products as part of a retail
sale.
Means any activity involving the retail sale of medical cannabis
or medical cannabis products from a dispensary via delivery.
Means the procurement, sale, and transport of medical cannabis
or medical cannabis products between entities licensed pursuant to
the MAUCRSA and any subsequent State of California legislation regarding
the same.
Means a person engaged 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.
Means all dead medical cannabis that has been harvested,
dried, cured, or otherwise processed, excluding leaves and stems.
Means manufactured cannabis that is intended to be used,
in whole or in part, for human consumption. An edible medical cannabis
product is not considered food as defined by § 109935 of
the California Health and Safety Code or a drug as defined by § 109925
of the California Health and Safety Code.
Means living medical cannabis flowers and plants, including
seeds, sprouts, immature plants (including unrooted clones), and vegetative
stage plants.
Means raw cannabis that has undergone a process whereby the
raw agricultural product has been transformed into a concentrate or
manufactured product intended for internal consumption or topical
application.
Means a person that conducts the production, preparation,
propagation, or compounding of manufactured medical cannabis, as defined
in this section, or medical cannabis products either directly or indirectly
or by extraction methods, or independently by means of chemical synthesis
at a fixed location that packages or repackages medical cannabis or
medical cannabis products or labels or relabels its container.
Means a location that produces, prepares, propagates, or
compounds medical cannabis or medical cannabis products, directly
or indirectly, by extraction methods, independently by means of chemical
synthesis, or by a combination of extraction and chemical synthesis.
Means "Cannabis," as that term is defined in this chapter.
Includes cultivation, manufacture, processing, laboratory
testing, transporting, delivery, distribution, or sale of medical
cannabis or a medical cannabis product, within the meaning of California
Business and Professions Code 19300 et seq.
Means any business or operation which engages in medical
cannabis activity.
Means a regulatory permit issued by the City of Avalon pursuant
to this chapter to a medical cannabis delivery service business, and
is required before any medical cannabis delivery service business
activity may be conducted in the City. The initial permit and annual
renewal of a medical cannabis delivery service business permit is
made expressly contingent upon the business' ongoing compliance
with all of the requirements of this chapter, any regulations adopted
by the City governing the medical cannabis delivery service activity
at issue, and any other state or local laws.
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 § 11362.5 of the
California Health and Safety Code (as the same may be amended from
time-to-time). For purposes of this Chapter, "medical cannabis" does
not include industrial hemp as defined by § 81000 of the
California Food and Agricultural Code or § 11018.5 of the
California Health and Safety Code.
Shall have the same definition as California Health and Safety
Code § 11362.7 et seq., as it may be amended, and which
means a person who is entitled to the protections of California Health
and Safety Code § 11362.5. For purposes of this chapter,
qualified patient shall also refer to qualified patients who have
obtained an identification card from the State Department of Health
Services, as that term is defined by California Health and Safety
Code § 11362.7 et seq.
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.
Shall have the meaning given that term by California Health
and Safety Code § 11362.7.
Means a permit or license issued by the State of California,
or one of its departments or divisions, under MAUCRSA to engage in
medical cannabis activity.
Means a product intended for external use. A topical cannabis
product is not considered a drug as defined by § 109925
of the California Health and Safety Code.
Means the transfer of medical cannabis or medical cannabis
products from the permitted business location of one licensee to the
permitted business location of another licensee, for the purposes
of conducting medical cannabis activity authorized by the MAUCRSA.
Means a person authorized to transport medical cannabis or
medical cannabis products in amounts authorized by the State of California,
or by one of its departments or divisions under the MAUCRSA.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Medical Cannabis Delivery Service Business Permit Required to
Engage in Medical Cannabis Business.
(1)
No person may engage in any medical cannabis delivery service
business unless the person (1) has a valid medical cannabis delivery
service business permit from the City of Avalon and (2) is currently
in compliance with all applicable state and local laws and regulations
pertaining to the medical cannabis delivery service business and the
medical cannabis delivery service business activities, including the
duty to obtain any required state licenses.
(2)
If and until Health and Safety Code § 11362.775, subdivision
(a), is repealed, the City intends that persons eligible to operate
collectives or cooperatives under that subdivision shall be eligible
to apply for a City permit to conduct medical cannabis activities,
but only to the degree those activities are authorized under state
law for collectives and cooperatives. If and when the Health and Safety
Code § 11362.775, subdivision (a), is repealed, or as soon
as collectives and cooperatives are no longer permitted under state
law, any City medical cannabis delivery service business permit holder
operating as a collective or cooperative who has not already obtained
a state license for the medical cannabis delivery service business
activities they are engaged in shall automatically forfeit his or
her City medical cannabis delivery service business permit. At that
point they shall no longer be authorized to engage in any medical
cannabis delivery service activities in the City until they obtain
both a City issued medical cannabis delivery service business permit
and a state license for that medical cannabis activity.
(b)
Medical Cannabis Delivery Service Business Employee Qualifications
and Training; Employer Obligations to Monitor Employee Compliance.
(1)
The owner or operator of a medical cannabis delivery service
business shall ensure that all employees comply with all the requirements
of this chapter.
(2)
Medical cannabis delivery service business owners or operators
shall ensure that employees are educated as to all the requirements
of this chapter and applicable state law requirements for medical
cannabis delivery service businesses and that they adhere to all applicable
requirements.
(3)
Failure of the owner or operator to comply with these requirements
shall be grounds for permit revocation.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Medical Cannabis Delivery Service Businesses.
(1)
Initial Maximum Amount of Medical Cannabis Delivery Service
Business Permits. Upon the effective date of this provision, the City
Council may issue a maximum of one medical cannabis delivery service
business permit to one qualified medical cannabis delivery service
business at any one given time. The permit shall be issued in accordance
with the application and permit approval process contained in this
chapter and resolutions and policies adopted pursuant to this chapter.
The medical cannabis delivery service business must obtain a medical
cannabis delivery service business permit from the City before commencing
operations, must be in compliance with all applicable state and federal
laws pertaining to its operation, including obtaining all necessary
licenses from the state, and shall comply with all applicable operational
and zoning requirements set forth in the Avalon Municipal Code. Nothing
in this chapter creates a mandate that the City Council must issue
any medical cannabis business permits to medical cannabis delivery
service businesses if the City Council determines that there are no
qualified applicants, the proposed locations for medical cannabis
delivery service business is incompatible with neighboring land uses,
or if the City Council determines that the issuance of a medical cannabis
delivery service business permit would have a negative effect on the
health, safety, or welfare of the citizens or businesses of Avalon,
or for any other reason allowed by law.
(2)
City Council Review and Increased Maximum Number of Medical
Cannabis Delivery Service Business Permits to be Issued. Twelve months
after the initial medical cannabis delivery service business permit
has been issued, the City Manager shall deliver a report to the City
Council during a regular meeting which examines the positive and negative
impacts that the medical cannabis delivery service business has had
on the community during the preceding 12 months. The report shall
include, among other things, an analysis of how the medical cannabis
delivery service business has complied with state and local regulations,
any positive or negative community and law enforcement impacts, and
any revenue generated. If after hearing the report the City Council
makes a determination that there are no significant consequences of
allowing a medical marijuana delivery service business to operate
in the City, the City Council at its sole discretion may vote to expand
the number of authorized medical cannabis delivery services permits
to be issued up to a maximum of two. If the City Council takes no
action, or finds that the impacts are unacceptable, then the maximum
number of medical cannabis delivery service businesses authorized
shall continue to be limited to one as provided in subsection(a) above.
(b)
All Other Medical Cannabis Businesses. Until further action
by the City Council to amend this chapter has been taken, medical
cannabis businesses other than medical cannabis delivery services
are not permitted to operate within the City.
(c)
Non-Medical Cannabis Businesses. Non-medical or personal cannabis
businesses including cultivation, manufacturing, distribution, dispensing,
testing laboratories, and transporting businesses are not permitted
within the City.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Initial Application Procedure.
(1)
The City Council shall adopt by resolution the procedures which
will govern the application process, and the manner in which the decision
will ultimately be made regarding the issuance of any medical cannabis
delivery service business permit(s). The resolution shall authorize
the City Manager or his or her designee to prepare the necessary forms,
adopt any necessary rules, regulations and processes, solicit applications,
conduct initial evaluations of the applicants, and ultimately provide
a final recommendation to the City Council regarding the applicants
for consideration.
(2)
At the time of filing, each applicant shall pay an application
fee established by resolution of the City Council, to cover all costs
incurred by the City in the application process.
(3)
After the initial review the City Manager or his designee will
make a recommendation to the City Council, and the City Council shall
make a final determination in accordance with the selection procedure
set forth in the resolution adopted by the City Council.
(b)
The City's Reservation of Rights. The City reserves the
right to reject any or all applications. The City may also modify,
postpone, or cancel any request for applications, or the entire program
under this chapter, at any time without liability, obligation, or
commitment to any party, firm, or organization. Persons submitting
applications assume the risk that all or any part of the program,
or any particular category of permit potentially authorized under
this chapter, may be cancelled at any time prior to permit issuance.
The City further reserves the right to request and obtain additional
information from any candidate submitting an application. In addition
to any other justification provided a failure to comply with other
requirements in this chapter, an application risks being rejected
for any of the following reasons:
(1)
Proposal received after designated time and date.
(2)
Proposal not containing the required elements, exhibits, nor
organized in the required format.
(3)
Proposal considered not fully responsive to this request for
permit application.
(4)
Proposal contains excess or extraneous material not called for
in the request for permit application.
(c)
Expiration of Medical Cannabis Delivery Service Business Permits. A medical cannabis delivery service business permit issued pursuant to this Chapter shall expire 12 months after the date of its issuance. Medical cannabis delivery service business permits may be renewed as provided in subsection (e) below.
(d)
Revocation of Permits. Medical cannabis delivery service business
permits may be revoked for any violation of any standard adopted pursuant
to this Chapter, law and/or any rule, regulation.
(e)
Renewal Applications.
(1)
An application for renewal of a medical cannabis delivery service
business permit shall be filed at least 60 calendar days prior to
the expiration date of the current permit.
(2)
The renewal application shall contain all the information required
for new applications.
(3)
The applicant shall pay a fee in an amount to be set by the
City Council to cover the costs of processing the renewal permit application,
together with any costs incurred by the City to administer the program
created under this chapter.
(4)
An application for renewal of a medical cannabis delivery service
business permit shall be rejected if any of the following exists:
a.
The application is filed less than 60 days before its expiration.
b.
The medical cannabis delivery service business permit is suspended
or revoked at the time of the application.
c.
The medical cannabis delivery service business has not been
in regular and continuous operation in the four months prior to the
renewal application.
d.
The medical cannabis delivery service business has failed to
conform to the requirements of this chapter, or of any regulations
adopted pursuant to this chapter.
e.
The permittee fails or is unable to renew its State of California
license.
f.
If the City or state has determined, based on substantial evidence,
that the permittee or applicant is in violation of the requirements
of this chapter, of the City's Municipal Code, or of the state
rules and regulations, and the City or state has determined that the
violation is grounds for termination or revocation of the medical
cannabis delivery service business permit.
(5)
The City Manager or his designee is authorized to make all decisions
concerning the issuance of a renewal permit. In making the decision,
the City Manager or his designee is authorized to impose additional
conditions to a renewal permit, if it is determined to be necessary
to ensure compliance with state or local laws and regulations or to
preserve the public health, safety or welfare. Appeals from the decision
of the City Manager or his designee shall be handled pursuant to § 5-20.06
entitled "Appeals."
(6)
If a renewal application is rejected, a person may file a new
application pursuant to this Chapter no sooner than one year from
the date of the rejection.
(f)
Effect of State License Suspension, Revocation, or Termination.
Suspension of a license issued by the State of California, or by any
of its departments or divisions, shall immediately suspend the ability
of a medical cannabis delivery service business to operate within
the City, until the State of California, or its respective department
or division, reinstates or reissues the State license. Should the
State of California, or any of its departments or divisions, revoke
or terminate the license of a medical cannabis delivery service business,
such revocation or termination shall also revoke or terminate the
ability of a medical cannabis delivery service business to operate
within the City of Avalon.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Appeals from Decisions of the City Manager or His Designee Under
This Chapter. Unless specifically provided elsewhere to the contrary,
whenever an appeal is provided for in this chapter from a decision
of the City Manager or his or her designee, the appeal shall be conducted
as prescribed in this section.
(b)
Written Request for Appeal.
(1)
Within 10 calendar days after the date of a decision of the
City Manager or his designee(s) to revoke, suspend or deny a permit,
or to add conditions to a permit, an aggrieved party may appeal such
action by filing a written appeal with the City Clerk setting forth
the reasons why the decision was not proper.
(2)
At the time of filing the appellant shall pay the designated
appeal fee, established by resolution of the City Council as may be
amended from time to time.
(c)
Appeal Hearing.
(1)
Upon receipt of the written appeal, the City Clerk shall set
the matter for a hearing before the City Council. The City Council
shall hear the matter de novo, and shall conduct the hearing pursuant
to the procedures set forth by the City.
(2)
The appeal shall be held within a reasonable time after the
filing the appeal, but in no event later than 90 days from the date
of such filing. The City shall notify the appellant of the time and
location at least 10 days prior to the date of the hearing.
(3)
At the hearing, the appellant may present any information they
deem relevant to the decision appealed. The formal rules of evidence
and procedure applicable in a court of law shall not apply to the
hearing.
(4)
At the conclusion of the hearing, the City Council may affirm,
reverse or modify the decision appealed. The decision of the City
Council shall be final.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Selection and Review of Finalists.
(1)
The City Council shall adopt by resolution a procedure by which
the applicants applying for a medical cannabis delivery service business
permit will be presented to the City Council for a final determination
at a public hearing.
(2)
The applicants shall be invited to attend the City Council meeting,
where they will be expected to make a public presentation introducing
their team and providing an overview of their proposal. In order to
provide adequate time, presentations may be divided over more than
one meeting over multiple days as determined to be necessary.
(3)
At least 10 days prior to the hearing, notice of the hearing
shall be sent to all property owners located within 300 feet of the
proposed business locations of each of the finalists to be considered
by the City Council.
(4)
The City Council shall rank the applicants in order of preference
based on criteria listed in the relevant resolution and shall select
one candidate to be issued a medical cannabis delivery services business
permit. The City Council's decision as to the selection of the
candidate to receive the permit shall be final.
(5)
Official issuance of a medical cannabis delivery service business
permit, however, is conditioned upon the prevailing candidate obtaining
all required land use approvals. Following the City Council's
selection, the prevailing candidate shall apply to the City's
planning department to obtain any required land use approvals or entitlements
for the permittee's location, if any. Land use approvals shall
include compliance with all applicable provisions of the California
Environmental Quality Act. The City Manager shall formally issue a
medical cannabis delivery service business permit once the City Manager
and Sheriff have both affirmed that all of the required land use approvals
have been obtained.
(6)
If the selected permittee is unable to fulfill all the requirements
of obtaining the medical cannabis delivery service business permit,
the City Council, in its sole discretion, may award the permit to
the next highest ranked finalist, or may begin the application process
again to allow for selection of a new set of finalists.
(7)
Issuance of a medical cannabis delivery service business permit
does not create a land use entitlement. A medical cannabis delivery
service business permit shall only be for a term of 12 months, and
shall expire at the end of the twelve-month period unless it is renewed
as provided herein. Furthermore, no permittee may begin operations,
notwithstanding the issuance of a permit, unless all of the state
and local laws and regulations, including but not limited to the requirements
of this chapter and of the permit, have been complied with.
(8)
Notwithstanding anything in this chapter to the contrary, the
City Council reserves the right to reject any or all applications
if it determines it would be in the best interest of the City, taking
into account any health, safety and welfare impacts on the community.
Applicants shall have no right to a medical cannabis delivery service
business permit until a permit is actually issued, and then only for
the duration of the permit's term. Each applicant assumes the
risk that, at any time prior to the issuance of a permit, the City
Council may terminate or delay the program created under this chapter.
(9)
If an application is denied, a new application may not be filed
for one year from the date of the denial.
(10)
A person or entity granted a medical cannabis delivery service
business permit shall be required to pay the permit fee established
by resolution of the City Council, to cover the costs of administering
the medical cannabis delivery service business permit program created
in this chapter.
(b)
Prohibition on Transfer of Medical Cannabis Delivery Service
Business Permits.
(1)
No person may transfer ownership or control of a medical cannabis
delivery service business or transfer any medical cannabis delivery
service business permit issued under this Chapter. Medical cannabis
delivery service business permits are not a property right, and permittees
have no economic interest in any permit issued to them. Permittees
have no right to sell or transfer a medical cannabis delivery service
business permit to another party, or to have the City Council consider
whether they should authorize the transfer of a medical cannabis delivery
service business permit to another party. Any attempt to transfer
ownership of a medical cannabis delivery service business or of a
medical cannabis delivery service business permit shall render the
medical cannabis delivery service business permit void.
(2)
Any attempt to transfer a medical cannabis delivery service
business permit or a medical cannabis delivery service business shall
result in the medical cannabis delivery service business permit being
declared immediately revoked and/or it is void and no longer of any
effect.
(3)
In any situation where a permit has been lost as a result of
an attempted transfer of the medical cannabis delivery service business
permit or of the medical cannabis delivery service business, or as
a result of the abandonment or revocation of the permit, any new permit
shall be issued using the standard process for the issuance of permits
in the first instance. No preference shall be given to any person
proposed as new owner or assignee by the former permit holder. In
such case, prior to accepting any new applications, the City shall
post the availability of the medical cannabis delivery service business
permit at issue on the City's website. The City Manager or his/her
designee may take other actions to help ensure the broadest pool of
applicants for the new permit.
[Ord. 1163-17, eff. December
7, 2017]
(a)
City Business License. Prior to commencing operations, a medical
cannabis delivery service business shall obtain a City of Avalon business
license.
(b)
Building Permits and Inspection. Prior to commencing operations,
a medical cannabis delivery service business shall be subject to a
mandatory building inspection, and must obtain all required permits
and approvals which would otherwise be required for any business of
the same size and intensity operating in that zone. This includes
but is not limited to obtaining any required building permit(s), fire
department approvals, Health Department approvals, and other zoning
and land use permit(s) and approvals.
(c)
Certification from Planning Director. Prior to commencing operations,
a medical cannabis delivery service business must obtain a certification
from the Planning Director certifying that the business is located
on a site that meets all of the requirements of the City's Municipal
Code.
(d)
Right to Occupy and to Use Property. As a condition precedent
to the City's issuance of a medical cannabis delivery service
business permit pursuant to this Chapter, any person intending to
open and to operate a medical cannabis delivery service business shall
provide sufficient evidence of the legal right to occupy and to use
the proposed location. In the event the proposed location will be
leased from another person, the applicant shall be required to provide
a signed and notarized statement from the owner of the property, acknowledging
that the property owner has read this Chapter and consents to the
operation of the medical cannabis delivery service business on the
owner's property.
(e)
Limitations on City's Liability. To the fullest extent
permitted by law, the City of Avalon shall not assume any liability
whatsoever with respect to having issued a medical cannabis delivery
service business permit pursuant to this chapter or otherwise approving
the operation of any medical cannabis business. As a condition to
the approval of any medical cannabis delivery service business permit,
the applicant shall be required to meet all of the following conditions
before they can receive the medical cannabis delivery service business
permit:
(1)
They must execute an agreement, in a form approved by the City
Attorney, agreeing to indemnify, defend (at applicant's sole
cost and expense), and hold the City of Avalon, and its officers,
officials, employees, representatives, and agents, harmless, from
any and all claims, losses, damages, injuries, liabilities or losses
which arise out of, or which are in any way related to, the City's
issuance of the medical cannabis delivery service business permit,
the City's decision to approve the operation of the medical cannabis
delivery service business or activity, to process used by the City
in making its decision, or the alleged violation of any federal, state
or local laws by the medical cannabis delivery service business or
any of its officers, employees or agents.
(2)
Maintain insurance at coverage limits established by § 1-6.01 of the Municipal Code and with conditions thereon determined necessary and appropriate from time to time by the City Attorney.
(3)
Reimburse the City of Avalon for all costs and expenses, including
but not limited to attorney fees and costs and court costs, which
the City of Avalon may be required to pay as a result of any legal
challenge related to the City's approval of the applicant's
medical cannabis delivery services business permit, or related to
the City's approval of a medical cannabis delivery service activity.
The City of Avalon may, at its sole discretion, participate at its
own expense in the defense of any such action, but such participation
shall not relieve any of the obligations imposed hereunder.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Compliance with Laws. It is the responsibility of the owners
and operators of the medical cannabis delivery service business to
ensure that it is, at all times, operating in a manner compliant with
all applicable state and local laws, and any regulations promulgated
thereunder. Nothing in this chapter shall be construed as authorizing
any actions which violate state law or local law with respect to the
operation of a medical cannabis delivery service business. It shall
be the responsibility of the owners and the operators of the medical
cannabis delivery service business to ensure that the medical cannabis
delivery service business is, at all times, operating in a manner
compliant with all applicable state and local laws, the 2008 Attorney
General Guidelines, any subsequently enacted state law or regulatory,
licensing, or certification requirements, and any specific, additional
operating procedures or requirements which may be imposed as conditions
of approval of the medical cannabis delivery service business permit.
Nothing in this chapter shall be construed as authorizing any actions
which violate state law with regard to the operation of a medical
cannabis delivery service business.
(b)
Fees, Charges, and Taxes.
(1)
No person may commence or continue any medical cannabis delivery
service activity in the City, without timely paying in full all fees,
charges, and any applicable taxes required for the operation of a
medical cannabis delivery service business. Fees and charges associated
with the operation of a medical cannabis delivery service activity
shall be established by resolution of the City Council which may be
amended from time to time.
(2)
A medical cannabis delivery service business authorized to operate
under this chapter shall pay all sales, use, business and other applicable
taxes, and all license, registration, and other fees required under
federal, state, and local law. Medical cannabis delivery service businesses
shall cooperate with the City with respect to any reasonable request
to audit the medical cannabis delivery service businesses' books
and records for the purpose of verifying compliance with this section,
including but not limited to a verification of the amount of taxes
required to be paid during any period.
(c)
Operating Requirements for All Medical Cannabis Delivery Service
Businesses.
Hours of Operation. Medical cannabis delivery service businesses
may conduct business between the hours of 10:00 A.M. and 10:00 P.M.
Monday through Sunday.
No in person on-site sales of medical cannabis shall be permitted.
All medical cannabis sales must be conducted via delivery.
(d)
Restriction on Consumption. Cannabis shall not be consumed on
the premises of any medical cannabis delivery service business.
(e)
No Outdoor Storage of Cannabis or Cannabis Products Is Permitted
at Any Time.
(f)
Reporting and Tracking of Product and of Gross Sales. Each medical
cannabis delivery service business shall have in place a point-of-sale
tracking system to track and report on all aspects of the medical
cannabis delivery service business including, but not limited to,
such matters as cannabis tracking, inventory data, and gross sales
(by weight and by sale). The medical cannabis delivery service business
shall ensure that such information is compatible with the City's
record-keeping systems. The system must have the capability to produce
historical transactional data for review by the City Manager or his/her
designee.
(g)
Licensed Facilities. All cannabis and cannabis products sold,
or distributed in the City shall be cultivated, manufactured, and
transported by licensed facilities that maintain operations in full
conformance with the State and local regulations.
(h)
Emergency Contact. Each medical cannabis delivery service business
shall provide the City Manager or his/her designee(s) with the name,
telephone number (mobile preferred, if available) of an owner and
or manager to whom emergency notice can be provided at any hour of
the day.
(i)
Minors. Persons under the age of 21 years of age shall not be
allowed to serve as a driver for a medical cannabis delivery service
business. It shall be unlawful and a violation of this Chapter for
any person to employ any person at a medical cannabis delivery service
business who is not 21 years of age or older.
(j)
Odor Control. Odor control devices and techniques shall be incorporated
in all medical cannabis delivery service businesses to ensure that
odors from cannabis are not detectable off-site. Medical cannabis
delivery service businesses shall provide a sufficient odor absorbing
ventilation and exhaust system so that odor generated inside the medical
cannabis delivery services business that is distinctive to its operation
is not detected outside of the facility, anywhere on adjacent property
or public rights-of-way, on or about the exterior or interior common
area walkways, hallways, breezeways, foyers, lobby areas, or any other
areas available for use by common tenants or the visiting public,
or within any other unit located inside the same building as the medical
cannabis delivery services business. As such, a medical cannabis delivery
service business must install and maintain the following equipment,
or any other equipment which the City Manager or his/her designee(s)
determine is a more effective method or technology:
(1)
An exhaust air filtration system with odor control that prevents
internal odors from being emitted externally. The medical cannabis
delivery services business applicant shall provide a statement from
the exhaust air filtration manufacturer that the system has been designed
to achieve the above standard based on the specific building size
and layout.
(2)
An air system that creates negative air pressure between the
medical cannabis delivery service business interior and exterior,
so that the odors generated inside the medical cannabis delivery service
business are not detectable on the outside of the medical cannabis
delivery service business. The medical cannabis delivery service business
applicant shall provide a statement from the air system manufacturer
that the system has been designed to achieve the above standard based
on the specific building size and layout.
(k)
Display of Medical Cannabis Delivery Service Business Permit
and City Business License. The original copy of the medical cannabis
delivery service business permit issued by the City pursuant to this
chapter and the City issued business license shall be posted inside
the medical cannabis delivery service business in a location not readily-visible
to the public.
(l)
Background Check. Pursuant to California Penal Code §§ 11105(b)(11)
and 13300(b)(11), which authorizes City authorities to access state
and local summary criminal history information for employment, licensing,
or certification purposes, and authorizes access to federal level
criminal history information by transmitting fingerprint images and
related information to the Department of Justice to be transmitted
to the Federal Bureau of Investigation, every person listed as an
owner, manager, or supervisor of the medical cannabis delivery service
business must submit fingerprints and other information deemed necessary
by the City Manager or his/her designee(s) for a background check
by the Avalon City Sheriff's Department. Pursuant to California
Penal Code §§ 11105(b)(11) and 13300(b)(11), which
requires that there be a requirement or exclusion from employment,
licensing, or certification based on specific criminal conduct on
the part of the subject of the record, no person shall be issued a
permit to operate a medical cannabis delivery services business unless
they have first cleared the background check, as determined by the
Sheriff, as required by this section. A fee for the cost of the background
investigation, which shall be the actual cost to the City of Avalon
to conduct the background investigation as it deems necessary and
appropriate, shall be paid at the time the application for a medical
cannabis delivery services business permit is submitted. The applicant(s)
shall provide an initial deposit in an amount the City Manager or
his/her designee(s) estimates will cover the cost of the background
investigation, which shall be used and drawn upon as a retainer to
cover the actual costs of such investigation. If this amount is not
sufficient, the applicant shall provide additional amounts that are
necessary and if the applicant is unable to provide the additional
amounts necessary to complete the investigation, the investigation
shall cease and shall not continue until such additional amounts are
paid. Upon completion of the investigation or in the event the applicant
withdraws their application, any fees paid for this process will be
deemed non-refundable.
The City shall not disseminate background check results information
to any unauthorized or private party.
When reviewing background check results, the Sheriff shall verify
that applicants have not been convicted of any crimes listed in Business
and Professions Code § 19323. Applicants found to have committed
any crimes listed in Business and Professions Code § 19323
may fail the background, and may be ineligible for a City medical
cannabis delivery service business permit.
(m)
Loitering. The owner and/or operator of a medical cannabis business
shall prohibit loitering by persons outside the facility both on the
premises and within 50 feet of the premises of the business.
(n)
Zoning Requirements. Medical cannabis delivery service businesses
must locate their brick and mortar place of business within the City's
commercial or special commercial zones.
(o)
Permits and Other Approvals. Prior to the establishment of any
medical cannabis delivery service or the operation of any such business,
the person(s) intending to establish a medical cannabis delivery services
business must first obtain all applicable planning, zoning, building,
and other applicable permits from the relevant governmental agency
which may be applicable to the zoning district in which such medical
cannabis delivery service intends to establish and to operate.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Records and Recordkeeping.
(1)
Each owner and operator of a medical cannabis delivery service
business shall maintain accurate books and records, detailing all
of the revenues and expenses of the delivery services, and all of
its assets and liabilities. On no less than an annual basis (at or
before the time of the renewal of a medical cannabis delivery service
business permit issued pursuant to this chapter), or at any time upon
reasonable request of the City, each medical cannabis delivery service
business shall file a sworn statement detailing the number of sales
by the medical cannabis delivery service business during the previous
twelve-month period (or shorter period based upon the timing of the
request), provided on a monthly basis. The statement shall also include
gross sales for each month, and all applicable taxes paid or due to
be paid.
(2)
Each owner and operator of a medical cannabis delivery service
business shall maintain a current register of the names and the contact
information (including the name, address, and telephone number) of
anyone owning or holding an interest in the medical cannabis delivery
service business, and separately of all the officers, managers, employees,
agents and volunteers currently employed or otherwise engaged by the
medical cannabis delivery service business. The register required
by this paragraph shall be provided to the City Manager or his/her
designee(s) upon a reasonable request.
(3)
Each medical cannabis delivery service business shall maintain
a record of all persons, patients, collectives and primary caregivers
served by the medical cannabis delivery service business, for a period
of no less than four years.
(4)
Medical cannabis delivery service businesses shall maintain
records of their inventory acquired, including the name and address
of each supplier, the date of acquisition and the quantity acquired
from each supplier, and the location of the cultivation of the supplier,
and shall maintain a copy of the supplier's state license to
cultivate (if required).
(5)
Subject to any restrictions under state or federal law, each
medical cannabis delivery service business shall allow City of Avalon
officials to have access to the medical cannabis delivery service
business's books, records, accounts, together with any other
data or documents relevant to its permitted medical cannabis delivery
service activities, for the purpose of conducting an audit or examination.
Books, records, accounts, and any and all relevant data or documents
will be produced no later than 24 hours after receipt of the City's
request, unless otherwise stipulated by the City.
(b)
Security Measures.
(1)
A permitted medical cannabis delivery service business shall
implement sufficient security measures to deter and prevent the unauthorized
entrance into areas containing medical cannabis or medical cannabis
products, and to deter and prevent the theft of medical cannabis or
medical cannabis products at the medical cannabis delivery service
business. Except as may otherwise be determined by the City Manager
or his/her designee(s), these security measures shall include, but
shall not be limited to, all of the following:
a.
Preventing individuals from remaining on the premises of the
medical cannabis delivery services business if they are not engaging
in an activity directly related to the permitted operations of the
medical cannabis delivery services business.
b.
Establishing limited access areas accessible only to authorized
medical cannabis delivery service business personnel.
c.
All medical cannabis and medical cannabis products, shall be
kept in a manner as to prevent diversion, theft, and loss.
d.
Installing twenty-four-hour security surveillance cameras of
at least HD-quality to monitor all entrances and exits to and from
the premises, all interior spaces within the medical cannabis delivery
service business, and all interior spaces where cannabis, cash or
currency, is being stored for any period of time on a regular basis.
The medical cannabis delivery service business shall be responsible
for ensuring that the security surveillance camera's footage
is remotely accessible by the City Manager or his/her designee(s),
and the City's Sheriff's Department, and that it is compatible
with the City's software and hardware. In addition, remote and
real-time, live access to the video footage from the cameras shall
be provided to the City Manager or his/her designee(s) and to the
City's Sheriff's Department. Video recordings shall be maintained
for a minimum of 45 days, and shall be made available to the City
Manager or his designee upon request.
e.
Installing sensors to detect entry to and exit from the premises.
f.
Installing panic buttons.
g.
Having a professionally installed, maintained, and monitored
alarm system.
h.
Any bars installed on the windows or the doors of the medical
cannabis delivery service business shall be installed only on the
interior of the building.
i.
Each medical cannabis delivery service business shall have the
capability to remain secure and operational during a power outage
and shall ensure that all access doors are not solely controlled by
an electronic access panel to ensure that locks are not released during
a power outage.
j.
Entrances into the medical cannabis delivery services business
shall be locked at all times with entry strictly controlled.
k.
Uniformed state-licensed security personnel shall be employed
to monitor site activity, control loitering and site access, and to
serve as a visual deterrent to unlawful activities. Security personnel
must be licensed by the State of California Bureau of Security and
Investigative Services personnel and shall be subject to the prior
review and approval of the City Manager or his/her designee(s), with
such approval not to be unreasonably withheld.
(2)
A medical cannabis delivery service business shall identify
a designated security representative/liaision to the City Manager,
who shall be reasonably available to meet with the City Avalon or
his/her designee regarding any security related measures or and operational
issues.
(3)
As part of the application and permitting process, a medical
cannabis delivery service business shall have a storage and transportation
plan, which describes in detail the procedures for safely and securely
storing and transporting all cannabis, cannabis products, and any
currency.
(4)
The medical cannabis delivery service business shall cooperate
with the City whenever the City Manager or his/her designee makes
a request, upon reasonable notice to the medical cannabis delivery
service business, to inspect or audit the effectiveness of any security
plan or of any other requirement of this Chapter.
(5)
A medical cannabis delivery services business shall notify the
Sheriff or his/her designee(s) within 24 hours after discovering any
of the following:
a.
Significant discrepancies identified during inventory. The level
of significance shall be determined by the regulations promulgated
by the City Manager or his/her designee.
b.
Diversion, theft, loss, or any criminal activity involving the
medical cannabis delivery service business or any agent or employee
of the medical cannabis delivery service business.
c.
The loss or unauthorized alteration of records related to cannabis,
registering qualifying patients, primary caregivers, or employees
or agents of the medical cannabis delivery service business.
d.
Any other breach of security.
(c)
Restriction on Alcohol Sales and Consumption. No person shall
cause or permit the sale, dispensing, or consumption of alcoholic
beverages on or about the premises of the medical cannabis delivery
service business.
(d)
If a medical cannabis delivery service business permittee is
operating as a collective or cooperative under Health and Safety Code
§ 11362.775, subdivision (a), members of the applicant authorized
to possess cannabis shall sign an agreement with the medical cannabis
delivery service business which states that members shall not distribute
cannabis or cannabis products to non-members or in violation of the
"Memorandum for all United States Attorneys," issued by the United
States Department of Justice, from James M. Cole, Deputy Attorney
General and any other applicable state and federal laws, regulations,
or guidelines.
(e)
If the medical cannabis delivery service business permittee
is operating as a collective or cooperative under Health and Safety
Code § 11362.775, subdivision (a), the medical cannabis
delivery service business shall terminate the membership of any member
violating any of the provisions of this Chapter.
(f)
Owners and Operators are required to verify the age and the
necessary documentation of each medical cannabis delivery services
business customer to ensure the customer is not under the age of 18
years, and to verify that the potential customer has a valid doctor's
recommendation.
(g)
There shall not be a physician located in or on the grounds
of any medical cannabis delivery services business at any time for
the purpose of evaluating patients for the issuance of a medical cannabis
prescription or card.
(h)
Prior to delivering medical cannabis or medical cannabis products
to any person, the medical cannabis delivery service business shall
obtain verification from the recommending physician that the person
requesting medical cannabis or medical cannabis products is a qualified
patient or primary caregiver.
(i)
All cannabis and products containing cannabis shall be dispensed
in child-proof packaging and shall remain in such packaging until
delivered and shall comply with other packaging requirements required
by state law.
[Ord. 1163-17, eff. December
7, 2017]
Legally permitted medical cannabis delivery service business
are authorized to make deliveries within the City subject to following
requirements:
(a)
The owner, operator, and delivery personnel shall comply with
all applicable state law requirements.
(b)
Delivery services shall be provided using commercial vehicles or commercial autoettes duly permitted under § 4-4.1702 of Title 4, Chapter 4-4, Article 17 of the Avalon Municipal Code. Any commercial vehicles or commercial autoettes used by a cannabis delivery service shall comply with any applicable state or local regulations.
(c)
The delivery personnel must be an employee of the medical cannabis
delivery services business.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Promulgation of Regulations and Standards.
(1)
In addition to any regulations adopted by the City Council,
the City Manager or his/her designee is authorized to establish any
additional rules, regulations, and standards governing the issuance,
denial, or renewal of medical cannabis delivery service business permits,
the ongoing operation of a medical cannabis delivery service business
and the City's oversight, or concerning any other subject determined
to be necessary to carry out the purposes of this chapter.
(2)
Regulations shall be published on the City's website.
(3)
Regulations promulgated by the City Manager shall become effective
upon date of publication. A medical cannabis delivery service business
shall be required to comply with all state and local laws and regulations,
including but not limited to any rules, regulations, or standards
adopted by the City Manager or his designee.
(b)
Community Relations Requirements for Medical Cannabis Delivery
Service Businesses.
(1)
Each medical cannabis delivery service business shall provide
the name, telephone number, and email address of a community relations
contact to whom notice of problems associated with the medical cannabis
delivery service business can be provided. Each medical cannabis delivery
service business shall also provide the above information to all businesses
and residences located within 100 feet of the medical cannabis delivery
service business property.
(2)
During the first year of operation pursuant to this chapter,
the owner, manager, and community relations representative from the
medical cannabis delivery service business holding a permit issued
pursuant to this chapter shall attend a quarterly meeting with the
City Manager or his/her designee(s) to discuss costs, benefits, and
other community issues arising as a result of implementation of this
chapter. After the first year of operation, the owner, manager, and
community relations representative from each medical cannabis delivery
service business shall meet with the City Manager or his/her designee(s)
when and as requested by the City Manager or his/her designee(s).
(3)
The medical cannabis delivery service businesses to which a
permit is issued pursuant to this chapter shall develop and make available
to youth organizations and educational institutions a public education
plan that outlines the risks of youth abuse of cannabis, and that
identifies resources available to youth related to drugs and drug
addiction.
(c)
Fees Deemed Debt to City of Avalon. The amount of any fee, cost
or charge imposed pursuant to this chapter shall be deemed a debt
to the City of Avalon that is recoverable via an authorized administrative
process as set forth in the Municipal Code, or in any court of competent
jurisdiction.
(d)
Permit Holder Responsible for Violations. The person or members
of a business entity to whom a medical cannabis delivery service business
permit is issued pursuant to this Chapter shall be responsible for
all violations of the laws of the State of California or of the regulations
and/or the ordinances of the City of Avalon, whether committed by
the permittee or any employee or agent of the permittee, which violations
occur in or about the premises of the medical cannabis delivery service
business whether or not said violations occur within the permit holder's
presence.
(e)
Inspection and Enforcement.
(1)
The City Manager or his/her designee(s) are charged with enforcing
the provisions of the Avalon City Municipal Code, or any provision
thereof, may enter the location of a medical cannabis delivery service
business at any time during the hours of operation without notice,
and inspect the location of any medical cannabis delivery service
business as well as any recordings and records required to be maintained
pursuant to this chapter or under applicable provisions of State law.
(2)
It is unlawful for any person having responsibility over the
operation of a medical cannabis delivery service business, to impede,
obstruct, interfere with, or otherwise not to allow, the City to conduct
an inspection, review or copy records, recordings or other documents
required to be maintained by a medical cannabis delivery service business
under this chapter or under state or local law. It is also unlawful
for a person to conceal, destroy, deface, damage, or falsify any records,
recordings or other documents required to be maintained by a medical
cannabis delivery service business under this chapter or under state
or local law.
(3)
The City Manager or his/her designee(s) charged with enforcing
the provisions of this Chapter may enter the location of a medical
cannabis delivery service business at any time during the hours of
operation and without notice to obtain samples of the cannabis to
test for public safety purposes. Any samples obtained by the City
of Avalon shall be logged, recorded, and maintained in accordance
with Avalon Sheriff's Department standards for evidence.
(4)
Concurrent Regulation with State. It is the stated intent of
this chapter to regulate medical cannabis activity in the City of
Avalon concurrently with the State of California.
[Ord. 1163-17, eff. December
7, 2017]
Smoking of cannabis or cannabis products is prohibited in any
public place.
[Ord. 1163-17, eff. December
7, 2017]
(a)
Violations Declared a Public Nuisance. Each and every violation
of the provisions of this Chapter is hereby deemed unlawful and a
public nuisance.
(b)
Each Violation a Separate Offense. Each and every violation
of this chapter shall constitute a separate violation and shall be
subject to all remedies and enforcement measures authorized by the
Avalon Municipal Code. Additionally, as a nuisance per se, any violation
of this chapter shall be subject to injunctive relief, any permit
issued pursuant to this chapter being deemed null and void, disgorgement
and payment to the City of any monies unlawfully obtained, costs of
abatement, costs of investigation, attorney fees, and any other relief
or remedy available at law or in equity. The City of Avalon may also
pursue any and all remedies and actions available and applicable under
state and local laws for any violations committed by the medical cannabis
delivery service business or persons related to, or associated with,
the medical cannabis delivery service activity. Additionally, when
there is determined to be an imminent threat to public health, safety
or welfare, the City Manager, his/her designee, or the Sheriff, may
take immediate action to temporarily suspend a medical cannabis delivery
service business permit issued by the City, pending a hearing before
the City Council.
(c)
Remedies Cumulative and Not Exclusive. The remedies provided
herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
