The purpose of this chapter is to: (1) protect the public health, safety and welfare through regulation of commercial cannabis activity as provided for in the California Medical and Adult-Use Cannabis Regulation and Safety Act; (2) create a regulatory permit to implement the commercial cannabis activity retailer provisions of the California Medical and Adult-Use Cannabis Regulation and Safety Act; (3) authorize commercial cannabis retailer storefronts to engage in the sale of cannabis and cannabis products to natural persons age 21 and over; (4) authorize commercial cannabis retailer storefronts to engage in retail sales of medical cannabis and medical cannabis products; (5) authorize existing medical marijuana dispensaries permitted under Section
17.66.120 to operate as retailer storefronts because those businesses have already undergone extensive review through the conditional use permit application process; (6) authorize retailer storefronts to make delivery retail sales in accordance with the California Medical and Adult-Use Cannabis Regulation and Safety Act; and (7) establish a procedure for retailer storefronts to relocate their business from their existing location to a new location provided the business complies with the zoning code before commencing operations at the new location; and (8) impose a two and one-half (2.5) percent tax on the retail sale of cannabis and cannabis products; (9) amend the conditional use permit standards for medical marijuana dispensaries to include commercial cannabis retailer storefronts.
(Ord. 443 § 1, 2018)
"A-license"
means a state license for cannabis or cannabis products that
are intended for adults 21 years of age and over and who do not possess
physician's recommendations.
"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, purified, or extracted from any part of the
plant; and every compound, manufacture, salt, derivative, mixture,
or preparation of the plant, its seeds, or resin. "Cannabis" also
means the separated resin, whether crude or purified, obtained from
cannabis. "Cannabis" does not include the mature stalks of the plant,
fiber produced from the stalks, oil or cake made from the seeds of
the plant any other compound, manufacture, salt, derivative, mixture,
or preparation of the mature stalks (except the resin extracted therefrom),
fiber, oil, or cake, or the sterilized seed of the plant which is
incapable of germination. For the purpose of this chapter, "cannabis"
does not mean "industrial hemp" as defined by Section 11018.5 of the
Health and Safety Code.
"Cannabis products"
means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not
limited to, concentrated cannabis, or an edible or topical product
containing cannabis or concentrated cannabis and other ingredients.
"Commercial cannabis activity"
means activities that include the cultivation, dispensing,
possession, manufacture, distribution, processing, storing, laboratory
testing, packaging, labeling, transportation, delivery or sale of
cannabis and cannabis products, including medical cannabis and medical
cannabis products, as provided for in the Medical and Adult-Use Cannabis
Regulation and Safety Act and its related or successor laws and regulations,
Division 10 of the California
Business and Professions Code, or any
provision of state law that regulates the licensing of cannabis businesses.
"Commercial cannabis business"
means any business or operation which engages in medicinal
or adult-use commercial cannabis activity as provided for in the Medical
and Adult-Use Cannabis Regulation and Safety Act and its related or
successor laws and regulations.
"Customer"
means a natural person 21 years of age or over; or a natural
person 18 years of age or older who possesses a physician's recommendation.
"Delivery"
means the commercial transfer of cannabis or cannabis products
to a customer. Delivery also includes the use by a retailer of any
technology platform.
"Dispensing"
means any activity involving the retail sale of cannabis
or cannabis products from a retailer storefront.
"License" or "state license"
means a permit or license issued by the State of California,
or one of its departments or divisions, under the Medical and Adult-Use
Cannabis Regulation and Safety Act and any subsequent State of California
legislation regarding the same, to engage in commercial cannabis activity.
"M-license"
means a state license for commercial cannabis activity involving
medicinal cannabis or medical cannabis products.
"Permittee"
means any person to whom a current and valid city-issued
regulatory permit for retailer-storefront commercial cannabis activity
has been issued.
"Person"
means any individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust,
receiver, syndicate, or any other group or combination acting as a
unit and the plural as well as the singular.
"Regulatory permit"
means the permit issued by the city pursuant to this chapter,
to a commercial cannabis business or a medical marijuana dispensary,
which is required before any commercial cannabis activity may be conducted
in the city.
"Retailer storefront"
means a facility where cannabis, cannabis products, or devices
for the use of cannabis or cannabis products are offered, either individually
or in any combination, for retail sale to customers at an on-site
fixed location, including an establishment that also offers delivery
of cannabis and cannabis products as part of a retail sale, in addition
to on-site sales.
(Ord. 443 § 1, 2018)
With the exception of retailer storefront, including delivery, commercial cannabis activity authorized pursuant to this chapter and medical marijuana dispensaries permitted to operate pursuant to Section
17.66.120, commercial cannabis activity, including manufacture, distribution, processing, laboratory testing, packaging, and labeling, is prohibited in the city.
(Ord. 443 § 1, 2018)
No more than two permittees shall be permitted to operate a
retailer-storefront commercial cannabis business in the city at any
time. For purposes of this section, the numerical limit is only intended
to create a maximum number of two businesses that may be issued regulatory
permits for retailer-storefront commercial cannabis activity. The
city manager shall not issue additional regulatory permits if there
are already two regulatory permits for retailer storefront commercial
cannabis activity in the city. The city manager shall not accept applications
for regulatory permits for retailer-storefront commercial cannabis
activity from new applicants if the maximum number of regulatory permits
has been issued. This numerical limit shall not apply to the change
in location of an existing regulatory permit where a permittee applies
for a change of location, in which case a new regulatory permit shall
be issued to a permittee contingent upon surrender of an existing
regulatory permit. The numerical limit of two is consistent with Malibu's
historical policy of permitting two medical marijuana dispensaries
to operate.
(Ord. 443 § 1, 2018)
Within 30 days, the city manager may establish a processing
fee, a permit fee, and/or a renewal fee for regulatory permits for
retailer-storefront commercial cannabis activity. The processing,
permit, and/or renewal fee shall not exceed the fee to apply for a
conditional use permit.
(Ord. 443 § 1, 2018)
Nothing in this chapter shall be construed as prohibiting the
city council from establishing an administrative enforcement framework
to regulate permittees that is consistent with the purposes of this
chapter.
(Ord. 443 § 1, 2018)
If any section, subsection, sentence, clause, portion, or phrase
of this chapter is for any reason held to be invalid or unconstitutional
by a decision of any court of any competent jurisdiction, such decision
shall not affect the validity of the remaining sections, subsections,
sentences, clauses, portions, or phrases of the ordinance codified
in this chapter. The citizens of Malibu hereby declare that they would
have passed this ordinance and each and every section, subsection,
sentence, clause, portion, or phrase without regard to whether any
other section, subsection, sentence, clause, portion, or phrase of
this chapter would be subsequently declared invalid or unconstitutional.
(Ord. 443 § 1, 2018)