This chapter is adopted pursuant to the legal mandate imposed by the state of California via Business and Professions Code Section 26320. Nothing in this chapter is intended to authorize any activity that is contrary to California law.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
The regulations in this chapter will be automatically repealed without additional action by the city council should Business and Professions Code Section 26322 be repealed by the California Legislature or be invalidated by a court of competent jurisdiction.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
The owners and operators of a delivery-only medical cannabis retailer, together with any person listed as the permittee or applicant on the delivery- only medical cannabis retailer application, are responsible for ensuring that the delivery-only medical cannabis retailer is, at all times, operating in a manner compliant with all applicable law.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this chapter. Words and phrases undefined in this chapter have the same meaning as set forth in the Compassionate Use Act; the Medical Cannabis Program Act; the Control, Regulate and Tax Adult Use of Cannabis Act; or the Medicinal and Adult-use Cannabis Regulation and Safety Act.
"Cannabis"
is defined in Health and Safety Code Section 11018.
"Delivery"
means the commercial transfer of nonmedical cannabis or nonmedical cannabis products from a dispensary or delivery-only medical cannabis retailer to a customer over 21 years of age, or the commercial transfer of medical cannabis or medical cannabis products to a primary caregiver or qualified patient as defined in Health and Safety Code Section 11362.7. "Delivery" also includes the use by a dispensary or delivery-only medical cannabis retailer of any technology platform owned and controlled by the dispensary, delivery-only medical cannabis retailer, or independently licensed under California law, which enables customers or qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed dispensary or delivery-only medical cannabis retailer of cannabis or cannabis products.
"Delivery-only medical cannabis retailer permit"
means a regulatory permit issued pursuant to this chapter.
"Delivery-only medical cannabis retailer"
means a non-storefront delivery retailer authorized to engage in the retail sale by delivery of medical cannabis to qualified patients pursuant to an M-license.
"Identification card"
means a document issued by the state of California that identifies a person authorized to engage in the medical use of cannabis and the person's designated primary caregiver, if any.
"Medical cannabis dispensary" or "medical marijuana dispensary"
is a dispensary that offers or delivers medical cannabis and medical cannabis products for retail sale to qualified patients and primary caregivers.
"Medical cannabis" or "medical cannabis product"
means a product containing cannabis, including, without limitation, concentrates and extractions, intended to be sold for use by medical cannabis patients in California pursuant to Health and Safety Code Section 11362.5. "Medical cannabis" does not include "industrial hemp" as defined by Food and Agricultural Code Section 81000 or Health and Safety Code Section 11018.5.
"Operations plan"
means an operating plan that implements the standard requirements of this chapter along with such additional, reasonable, criteria needed to protect public health and safety as determined by the police chief based upon the size and location of the proposed cannabis-related business.
"Person with an identification card"
means an individual who is a qualified patient who has applied for and received a valid identification card pursuant to Health & Safety Code Section 11362.7, et seq.
"Police chief"
means the police chief or any other individual appointed by the city manager or approved pursuant to written agreement for law enforcement services executed pursuant to Government Code Section 54981.
"Primary caregiver"
means the individual, designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person, and may include any of the following:
(a) 
In any case in which a qualified patient or person with an identification card receives medical care or supportive services, or both, from a clinic licensed pursuant to Health and Safety Code Section 1200, et seq., a health care facility licensed pursuant to Health and Safety Code Section 1250, et seq., a residential care facility for persons with chronic life-threatening illness licensed pursuant to Health and Safety Code Section 1568.01, et seq., a residential care facility for the elderly licensed pursuant to Health and Safety Code Section 1569, et seq., a hospice, or a home health agency licensed pursuant to Health and Safety Code Section 1725, et seq., the owner or operator, or no more than three employees who are designated by the owner or operator, of the clinic, facility, hospice, or home health agency, if designated as a primary caregiver by that qualified patient or person with an identification card.
(b) 
An individual who has been designated as a primary caregiver by more than one qualified patient or person with an identification card, if every qualified patient or person with an identification card who has designated that individual as a primary caregiver resides in the same city or county as the primary caregiver.
(c) 
An individual who has been designated as a primary caregiver by a qualified patient or person with an identification card who resides in a city or county other than that of the primary caregiver, if the individual has not been designated as a primary caregiver by any other qualified patient or person with an identification card.
(d) 
A primary caregiver must be at least 18 years old, unless the primary caregiver is the parent of a minor child who is a qualified patient or a person with an identification card or the primary caregiver is a person otherwise entitled to make medical decisions under state law pursuant to Family Code Section 6922, 7002, 7050, or 7120.
"Qualified patient"
means a person who is entitled to the protections of Health and Safety Code Section 11362.5.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
It is unlawful for any person to engage in or operate a delivery-only medical cannabis retailer in the city unless the person posses a valid delivery-only medical cannabis retailer permit from the city; and complies with all applicable law governing the delivery-only medical cannabis retailer, including the duty to obtain and maintain any required state license(s).
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
(a) 
Delivery-only medical cannabis retailer permit applications must be made on a form approved by the city manager, or designee, and accompanied by all information requested on the application.
(b) 
Each application must be accompanied by an application fee, the amount of which will be set by city council resolution. Any application fee is in addition to any permit fee separately established by city council resolution.
(c) 
The application must identify the address of the location where the delivery-only medical cannabis retailer is proposed to operate.
(d) 
No person may apply for a delivery-only medical cannabis retailer permit until and unless a conditional use permit issued pursuant to Title 21 of this code authorizes a delivery-only medical cannabis retailer use at the subject location. A conditional use permit is required in addition to, and separately from, a delivery-only medical cannabis retailer permit required by this chapter. Before an application for a delivery-only medical cannabis retailer permit will be accepted by the city for processing, the applicant must provide, on a form approved by the city manager, or designee, proof that the owner of the underlying property, or his/her/its authorized agent, authorized filing the application for a delivery-only medical cannabis retailer permit at the subject location. A copy of the conditional use permit authorizing a cannabis-related use on the subject property must accompany the application for a delivery-only medical cannabis retailer permit. Only one application per parcel will be accepted and processed by the city at a given time. If an application for a delivery-only medical cannabis retailer permit is denied, a subsequent application for a delivery-only medical cannabis retailer permit on the same parcel may be accepted by the city only after one year following the denial is final and all available administrative and judicial remedies are exhausted.
(e) 
Completed applications must be submitted to the city manager, or designee. Only complete applications will be considered. An application is complete if it is submitted with all of the information requested therein, together with full payment of the application fee. Applications will be considered in the order they are received. The city manager, or designee, may require supplemental information from any applicant before deeming an application complete. Such information must be provided to the city manager, or designee, within seven business days. Failure to provide the information results in the application losing its priority in the queue and will not be considered "received" until the date that all requested supplemental information is provided to the city manager, or designee.
(f) 
The city council may, by resolution, establish minimum threshold qualifications for all delivery-only medical cannabis retailer permit applicants including, without limitation, qualifications relating to previous relevant business experience, criminal history, minimum liquid assets, and/or net worth. Every application for a delivery-only medical cannabis retailer permit must be accompanied by credible evidence demonstrating that the applicant meets or exceeds each of the threshold requirements established by the city council.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
Each delivery-only medical cannabis retailer permit issued pursuant to this chapter must be activated within 30 days after the city approves the delivery-only medical cannabis retailer permit. Activation occurs when the permittee pays all fees required by this chapter; accepts all conditions; provides evidence that it was issued a valid conditional use permit; and provides evidence that it applied with the state of California for all required permits.
Each delivery-only medical cannabis retailer permit issued pursuant to this chapter expires 12 months after the date it is issued. Delivery-only medical cannabis retailer permits may be renewed as provided in this chapter.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
(a) 
An application for renewal of a delivery-only medical cannabis retailer permit must be filed at least 60 calendar days before the expiration of the current permit.
(b) 
The renewal application must contain all the information required for a new application.
(c) 
The renewal application must be accompanied by a renewal fee established by city council resolution.
(d) 
The renewal application must be denied if any of the following circumstances exists:
(1) 
The renewal application is filed less than 60 calendar days before expiration of the permit.
(2) 
The delivery-only medical cannabis retailer permit is suspended at the time of the renewal application.
(3) 
The delivery-only medical cannabis retailer has not been in regular and continuous operation in the four months before the renewal application.
(4) 
The delivery-only medical cannabis retailer failed to conform to the requirements of this chapter, any regulations adopted pursuant to this chapter, or applicable state law.
(5) 
The permittee does not possess a valid license from the state of California, if required by law.
(e) 
The city manager, or designee, is authorized to make all decisions concerning applications for renewal. The city manager, or designee, may impose additional conditions on a renewal permit if he or she determines it is necessary to ensure compliance with state or local laws and regulations or to preserve and protect the public health, safety, or welfare.
(f) 
If a renewal application is denied for any reason, the permittee will be barred from renewing the delivery-only medical cannabis retailer permit. If the permittee wishes to obtain another delivery-only medical cannabis retailer permit, they must file a new application as set forth in this chapter.
(g) 
The city manager's decision with respect to a renewal application is the city's final decision.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
(a) 
It is unlawful for any person to operate a delivery-only medical cannabis retailer at any location other than the location specifically authorized and identified on a city-issued delivery-only medical cannabis retailer permit.
(b) 
No person may transfer an ownership interest, ownership, or control of a delivery-only medical cannabis retailer or transfer any delivery-only medical cannabis retailer permit issued under this chapter. It is unlawful for a delivery-only medical cannabis retailer permittee to sell or transfer a delivery-only medical cannabis retailer permit to another party. Any attempt to transfer an ownership interest or ownership of a delivery-only medical cannabis retailer, or of a delivery-only medical cannabis retailer permit, will automatically render the delivery-only medical cannabis retailer permit void.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
In consideration of the privilege for obtaining a delivery-only medical cannabis retailer permit pursuant to this chapter, and in addition to any other requirements of this chapter, a permittee must pay to the city the following:
(a) 
Permit Fee.
(1) 
During the term of any permit, the permittee will pay the city an annual fee (the "permit fee") as established by city council resolution.
(2) 
The permit fee is due and payable annually on the anniversary date of the permit without demand and upon filing of the report required by this section. Any fees or expenses charged to permittees by the city pursuant to this section, or any other provision of the permit, unless disputed in good faith, must be paid when due or are deemed delinquent. Any undisputed delinquent amounts will accrue an interest rate of 10% per annum. Any neglect, omission or refusal by permittee to pay any undisputed delinquent fee with any late charges, within 30 days of written demand for payment is grounds for the city to declare the permit forfeited pursuant to the procedures established by this chapter.
(3) 
Payments must be made as determined by the city manager, or designee. The permit fee must be paid annually during the term of the permit, including the year of granting the permit.
(b) 
Annual Increase.
(1) 
The amount of each annual payment of the permit fee is subject to an increase after the first year of the permit and each subsequent year.
(2) 
The increase is based on the annual change in the Consumer Price Index (CPI), All Urban Consumers, for the Los Angeles-Riverside-Orange County area (1982-84 = 100), as published by the United States Bureau of Labor Statistics, Department of Labor, for the month of September immediately preceding the month in which payment is due and payable CPI for the year. If the Index is discontinued or revised during the term of this permit, such other governmental price index or computation with which it is replaced chosen by the city will be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised.
(c) 
Reports Required. A permittee must file with the city clerk and finance director, on or before January 31st after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this permit and on or before January 31st after the expiration of each calendar year thereafter, two copies of a report duly verified by the oath of the permittee or by the oath of a duly authorized representative of the permittee, showing for the immediately preceding permit period:
(1) 
The total gross receipts received by the permittee from the sale of cannabis and the use, operation or possession of this permit during the preceding calendar year, or fractional calendar year.
(d) 
Any neglect, omission or refusal by permittee to file the verified statement required by the permit, or to pay any required payments at the time and in the manner specified is grounds for the declaration of a forfeiture of this permit and of all rights and privileges of permittee hereunder, provided that permittee has not cured said neglect, omission, or refusal to file or pay within 15 days following written notice from the city of failure to file or pay the required amount, or, if such neglect, omission or refusal is not reasonably subject to cure within such 15-day period, permittee has not commenced to cure such neglect, omission or refusal within such 15-day period and has not continued to prosecute such cure to completion.
(e) 
The fee required by this section is in addition to any taxes imposed upon a cannabis business.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
A conditional use permit issued pursuant to this code for a delivery-only medical cannabis retailer permit must include, as a condition of approval, the operational standards set forth in this chapter. In addition, the conditional use permit must incorporate by reference an operations plan approved by the police chief, or designee.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
(a) 
To operate, a delivery-only medical cannabis retailer must obtain and maintain both the proper license from the state of California and a delivery-only medical cannabis retailer permit as set forth in this chapter.
(b) 
Subject to the conditions imposed by this chapter, mobile delivery privileges may be suspended or terminated by the city manager, or designee, as set forth in this chapter.
(c) 
It is unlawful for alcohol or tobacco to be sold by a delivery-only medical cannabis retailer. Further, it is unlawful for smoking, vaporization, ingestion or consumption of alcohol, tobacco or cannabis in any form, to occur on the premises of a delivery-only medical cannabis retailer.
(d) 
It is unlawful for cannabis or cannabis products to be publicly visible from the exterior of the property of a delivery-only medical cannabis retailer.
(e) 
All cannabis and cannabis products sold or otherwise made available at a delivery-only medical cannabis retailer must be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with applicable law.
(f) 
Each delivery-only medical cannabis retailer must provide the city manager, or designee, with the name and telephone number of an on-site employee or owner to whom emergency notice can be provided. The telephone number provided must be capable of accepting recorded voice messages in the event the contact person does not answer.
(g) 
It is unlawful for any person under 21 years of age to be allowed on the premises of a delivery-only medical cannabis retailer unless such person possesses a valid identification card issued by the state of California.
(h) 
It is unlawful for any person to employ another person under the age of 21 at a delivery-only medical cannabis retailer.
(i) 
Uniformed security personnel must be employed to monitor all entrances and exits of the delivery-only medical cannabis retailer and to serve as a visual deterrent to unlawful activities during all hours of operation. Every security guard employed by or provided by the delivery-only medical cannabis retailer must be currently licensed by the state of California and in possession of a valid "guard card." The number of such security personnel must be set forth in the operations plan.
(j) 
Odor control devices and techniques must be incorporated in a delivery-only medical cannabis retailer to ensure that odors from cannabis are not detectable outside of the delivery-only medical cannabis retailer or in any tenant space or area adjacent to the delivery-only medical cannabis retailer.
(k) 
All law enforcement personnel seeking admission to the delivery-only medical cannabis retailer for the purpose of ascertaining compliance with the standards and regulations of this code must always be given unrestricted access to all areas of the premises during hours of operation. Consent to such unrestricted access must be acknowledged by the permittee and included within the operations plan.
(l) 
All interior spaces of the retailer (except restrooms), and all entrances and exits to and from the premises, must be monitored by 24-hour video security surveillance of at least HD quality with night vision capability. The video security system must be compatible with software and hardware utilized by the city as determined by the police chief and set forth in the operations plan. Surveillance video must be recorded to a device that is securely located on the premises and all footage must be maintained for a minimum of 45 days. The video surveillance system specifications must be set forth in the operations plan before the city issues a certificate of occupancy for the delivery-only medical cannabis retailer.
(m) 
A delivery-only medical cannabis retailer must have a professionally installed, maintained, and monitored alarm system as approved through the operations plan.
(n) 
A delivery-only medical cannabis retailer must maintain a valid business license as required by this code.
(o) 
All food products, food storage facilities, food-related utensils, equipment and materials must be approved, used, managed and handled in accordance with Health and Safety Code Section 113700, et seq. All food products must be protected from contamination at all times, and all food handlers must be clean, in good health, and free from communicable diseases. The Los Angeles County department of public health may inspect the delivery-only medical cannabis retailer at any time during business hours to ensure compliance with applicable law.
(p) 
It is unlawful for a physician to be permitted in a delivery-only medical cannabis retailer at any time for the purpose of evaluating patients to issue a medical cannabis prescription or identification card.
(q) 
As part of the operations plan, permittees must execute an agreement in a form approved by the city attorney that defends and indemnifies the city of Monterey Park, along with its officials, officers, and employees, from any claim or liability arising from the city approving a delivery-only medical cannabis retailer permit. Such agreement must be secured with sufficient insurance, as determined by the city attorney, and a surety, as approved by the city attorney, to adequately protect the city from any and all liability.
(r) 
A delivery-only medical cannabis retailer permit is subject to all of the regulations and operational standards set forth in this section in addition to the conditions stated in the permit itself.
(s) 
Before dispensing medical cannabis or medical cannabis products to any person under the age of 21, the delivery-only medical cannabis retailer must verify that the person possesses a valid identification card.
(t) 
It is unlawful for any member of the public to be allowed on the premises of delivery-only medical cannabis retailer.
(u) 
A delivery-only medical cannabis retailer may sell by delivery medical cannabis, medical cannabis products, and medical cannabis accessories to a person 18 years of age or older who possesses a valid identification card under Health and Safety Code Section 11362.71 and a valid government-issued identification card.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
It is unlawful for any person under the age of 21 to be allowed to serve as a delivery driver and no person or permittee can employ a person under the age of 21 for the purpose of making mobile deliveries of any cannabis product.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
No delivery driver may carry more than $200 in cash while engaged in the service of delivering medical cannabis or medical cannabis products.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
A violation of this chapter constitutes a misdemeanor. The city attorney may, at his or her discretion, reduce a violation to an infraction. Any violation of this chapter may also be abated as a public nuisance. The remedies provided by this chapter are cumulative and in addition to any other criminal or civil remedies.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)
(a) 
In addition to any other penalty authorized by law, the city manager, or designee, may suspend or revoke a delivery-only medical cannabis retailer permit for the following reasons:
(1) 
Upon learning or discovering facts that require permit denial under this chapter that were not previously disclosed or reasonably discoverable;
(2) 
If the permittee violates any condition imposed by this chapter or by the terms of the permit; or
(3) 
Violation of any law of moral turpitude, including, without limitation, a criminal conviction or civil liability arising from a complaint filed in a court of competent jurisdiction.
(b) 
Notice of Suspension or Revocation. If after having determined that adequate grounds exist the city manager, or designee, elects to suspend or revoke a delivery-only medical cannabis retailer permit, the city manager, or designee, must serve a notice of suspension or revocation on the permittee. The notice must state the reason(s) for the action and provide information regarding the right to a hearing before the city manager. Except as otherwise provided, the suspension or revocation of the permit does not become effective until the time for filing a request for hearing has passed or, if a request for hearing is timely filed, until the decision of the city manager, or designee, is final.
(c) 
The notice of suspension or revocation will be sent to the business address indicated on the permit. Service is deemed complete one business day after deposit in the United States mail.
(d) 
A permittee that has been served with a notice of suspension of revocation may, within five business days, request a hearing before the city manager, or designee. The request must be made on a form approved by the city manager or designee.
(e) 
If a timely request for a hearing is made by the permittee, the city manager, or designee, will schedule a hearing within 30 days. The hearing may be held in the office of the city manager, or designee, or at an alternative location designated by the city manager, or designee. The permittee will be notified of the time and place of the hearing at least 10 days before the scheduled date.
(f) 
If the city manager, or designee, determines, in his or her sole discretion, that the continued operation of the delivery-only medical cannabis retailer presents an imminent threat to the public health, safety or welfare, the suspension or revocation becomes effective immediately upon notice thereof. In such a case, if the permittee requests a hearing before the city manager, or designee, the hearing will be scheduled within seven business days. The permittee will be notified of the time and place of the hearing at least 48 hours before the scheduled date. Notice may be given by any means reasonably calculated to provide actual notice to the permittee including, without limitation, mailed notice or telephonic notice.
(g) 
The permittee may present written and/or oral testimony and evidence at the hearing and will be provided 30 minutes for a presentation. Formal rules of evidence and procedure applicable in a court of law do not apply. The city manager, or designee, may, in his or her sole discretion, provide the permittee additional time to present evidence, testimony and argument.
(h) 
The city manager, or designee, will issue a written decision within 10 business days of the hearing. If the suspension or revocation was made immediately effective, the city manager's written decision will be issued within five business days of the hearing. The city manager's, or designee's, decision is the city's final decision.
(i) 
Effect of Revocation. If a delivery-only medical cannabis retailer permit is revoked, the former permittee is presumptively disqualified to apply for a new permit for a period of two years from the effective date of the revocation. This presumption may be overcome upon a showing of good cause as to why a permit should be issued following a revocation. Any such showing must be made to the city manager's, or designee's, satisfaction.
(Ord. 2241, 12/20/2023; Ord. 2242, 1/17/2024)