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Long Beach City Att'y Office Memo Re Medical Marijuana (Sept. 22, 2015)
Long Beach City Att'y Office Memo Re Medical Marijuana (Sept. 22, 2015)
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CHARLES PARKIN
City Attorney
September 22,2015
DominicHolzhaus
Anne C. Lattime
MICHAELJ. MAIS
C. Geoffrey Allred
GaryJ. Anderson
RichardF. Anthony
WilliamR. Baerg
Kendra 1. Carney
LaTashaN. Corry
Charles M. Gale
HalehR. Jenkins
Michele 1. Levinson
RECOMMENDATION:
Recommendation to receive and file the City Attorney's report on Medical
Marijuana
DISCUSSION
BarbaraJ.McTigue
Howard D. Russell
ArturoD. Sanchez
Tiffani1. Shin
LindaT.Vu
Amy R. Webber
Theodore B. Zinger
On September 1,2015, Council requested the City Attorney submit a report regarding the
issue of medical marijuana. The City Attorney's Office was requested to: (1) report back
to the City Council regarding the implications of AB 266, if it was passed by the Legislature;
(2) provide a comparison of the various recommendations made by the Medical Cannabis
Task Force with those made by the Planning Commission; and (3) provide a list of topics
that the Council must address if the City is to adopt a comprehensive medical marijuana
regulatory ordinance.
On September 10, 2015, the California Legislature, with input from the Governor's Office,
essentially "gutted" AB 266, and instead, passed three separate bills which are collectively
referred to as the Medical Marijuana Regulation and Safety Act ("MMRSA"). The Governor
has until October 11, 2015, to act on these bills. The three bills, AB 266 (Bonta), AB 243
(Wood), and SB 643 (McGuire), are extensive and establish the first comprehensive
statewide regulatory framework for the cultivation, testing and distribution of medical
. cannabis and medical cannabis products. An initial overview of the key regulatory features
of the three bills is attached as Exhibit "A".
Attached as Exhibit "B" is a Chart which sets forth a comparison of the recommendations
made by the Medical Marijuana Task Force and the Planning Commission when it
submitted a draft medical marijuana regulatory ordinance to the City Council at a study
session on February 10, 2015. A third column in the Chart describes the impact of the
state legislation on the recommendation.
The MMRSA makes clear that local public entities retain their current right to ban medical
marijuana dispensaries, cultivation sites, and related medical marijuana activities within
their respective jurisdictions. The MMRSA also makes clear that cities are fully empowered
to adopt regulatory ordinances related to medical marijuana. If cities choose to regulate
medical marijuana, they may adopt typical land use regulations such as zoning restrictions,
333 West Ocean Boulevard, Eleventh Floor, Long Beach, California 90802-4664 (562) 570-2200 Fax (562) 436-1579
Eighth Floor (562)570-2245 Fax (562) 570-2220
4. Cultivation;
5. Delivery; and
6. Timing.
Any regulatory ordinance adopted by the City Council would operate in conjunction with
the numerous provisions of the MMRSA, if the three bills are approved by the Governor.
However, many of the provisions of the MMRSA require that various State agencies
formulate and adopt administrative regulations before the MMRSA becomes fully
operational. If the Council chooses to adopt a regulatory ordinance at this time, the City
Attorney's office would craft an ordinance that would address the City's immediate local
concerns and would include provisions that would transition certain regulatory functions
and responsibilities to the State (e.g., product testing, labeling, and certain licensing
activities) when the various State agencies are in a position to commence their respective
regulatory activities pursuant to the MMRSA.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
CHAR~ES
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Cities retain the current right to ban medical marijuana dispensaries and cultivation
sites within their respective jurisdictional boundaries.
If cities choose to regulate medical marijuana rather than instituting a ban, they
may adopt typical land use regulations such as zoning restrictions, buffer areas,
cultivation regulations, hours of operation, CUP requirements, application and
licensing requirements, regulatory fees, taxes, and the like.
Reserves to local jurisdictions and local law enforcement entities- the power and
authority to enforce and administer local medical marijuana ordinances and
regulations.
Provides that no person shall engage in commercial cannabis activity without both
a valid State and local permit or license following the date of implementing of
regulations by the relevant licensing authority.
Provides that revocation of a local license or permit terminates the ability of the
medical cannabis business to operate within the local jurisdiction even though the
operator may have a valid State permit or license.
Reserves to local jurisdictions the power to assess fees and taxes on facilities that
are licensed or permitted for medical marijuana businesses.
Mandates that the Department of Consumer Affairs, the Department of Food and
Agriculture, and the State Department of Public Health promulgate regulations for
implementation of their respective responsibilities under the MMRSA.
Establishes that licenses issued pursuant to the MMRSA are valid for a period of
12 months from the date of issuance and that state licenses must be renewed
annually.
Requires that all licensees holding cultivation or manufacturing licenses to send all
medical cannabis and medical cannabis products to a licensed "distributor" for the
purpose of testing the product by a licensed testing facility, prior to its release into
the retail stream for distribution to qualified patients.
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Requires testing facilities to be licensed and registered by the State and to meet
certain minimum standards before handling, testing or analyzing medical cannabis
or cannabis products.
Requires that prior to delivery or sale at a dispensary all medical cannabis products
be properly labeled and packaged and that all packaging contain certain specified
warning labels.
Requires that beginning March 1, 2023, each licensing authority prepare and
submit to the State, an annual report on such things as the amount of funds
allocated by each authority for medical cannabis licensing, enforcement, and
administration.
Establishes privacy protections and an exemption from the provisions of the Public
Records Act for the names of patients, their medical conditions, or the names of
their primary caregivers, except as necessary for authorized employees of State
or local agencies for the purpose of performing their duties pursuant to local
ordinance or the MMRSA.
Requires that prior to January 1, 2017, the State Division of Occupational Health
convene a committee to evaluate whether there is a need to develop industry
specific regulations to protect employees who are employed in licensed medical
cannabis facilities.
Requires that various State agencies, including taxing agencies and the
Department of Food and Agriculture, develop a system for reporting the movement
of commercial cannabis products throughout the distribution chain to ensure that
appropriate taxes are tracked and collected.
AB243
and maximum tolerances for pesticides and other foreign object residue in
harvested cannabis.
Requires the State Department of Public Health to develop standards for the
production and labeling of all edible medical cannabis products.
Requires the State Department of Food and Agriculture, in consultation with the
Department of Fish and Wildlife, and the State Water Resources Control Board to
ensure that individual and cumulative effects of water diversion associated with
cannabis cultivation do not affect the instream flows needed for fish spawning or
migration.
Requires the State Department of Food and Agriculture to develop regulations that
will insure that cultivation by licensees is conducted in accordance with state and
local laws related to land conversion, grading, electricity usage, agricultural
discharges and similar matters.
Permits the State Director of Finance to provide an initial operating loan from the
State General Fund to the Medical Marijuana Regulation and Safety Act Fund in
an amount that does not exceed ten million dollars ($10,000,000).
Permits the State to establish a "grant program" to allocate monies received from
fines and penalties related to medical cannabis production and distribution for the
purpose of assisting with medical cannabis regulation and enforcement by the
State and local regulating authorities.
The grant program shall only be
implemented after the initial ten million dollars ($10,000,000) "start-up" loan has
been repaid.
Establishes civil penalties for those engaging in cannabis activities without proper
licenses or other permits in an amount of up to twice the amount of the license fee
for each violation. Permits both the Attorney General and local authorities (such
as City Attorneys) to bring enforcement actions to collect civil penalties.
Requires the State Department of Fish and Game, in coordination with the State
Water Resources Control Board, to establish a permanent multi-agency task force
to address the environmental impacts of cannabis cultivation.
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Requires applicants to submit to the licensing State agency a full set of fingerprints
for the purpose of conducting criminal history record checks and permits relevant
agencies to obtain criminal history information from the State Department of
Justice and the Federal Bureau of Investigation.
Requires the Medical Board of California to consult with the California Marijuana
Research Program for the purpose of adopting appropriate guidelines for the
administration and use of medical cannabis.
6
Specifies that the Department of Consumer Affairs shall have the "sole authority
to create, issue, renew, discipline, suspend, or revoke licenses for the
transportation, storage unrelated to manufacturing activities, distribution and sale
of medical marijuana within the state and to collect fees" in connection with the
regulated activities, and that the State Department of Health shall administer the
provisions of the act related to and associated with the manufacturing and testing
of medical cannabis.
Specifies that when medical cannabis regulations are implemented by the State,
no person shall engage in commercial cannabis activity without "possessing both
a state license and a local permit, license or other authorization". Revocation of a
local permit or license shall terminate the ability of a medical cannabis business to
operate within that locale even if the entity has a State license or permit.
Recognizes that local jurisdictions "retain the power to assess fees and taxes" on
facilities licensed by the State for medical cannabis activities.
Requires a license applicant to provide proof that the applicant has the permission
of the landowner to engage in medical cannabis activities.
Requires that applicants with more than 20 employees to provide a statement that
the applicant will enter into, or has entered into, a "labor peace agreement".
Establishes a "Unique Identifier and Track and Trace Program" to insure that
product is tracked form "seed to sale" for the purpose of public safety and the
imposition of taxes.
(A15-02162)
.c.eOMPARISONTABI..E()FTAsKFORCERECOMMENDATIONS
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1. Recommendation to equally
distribute medical marijuana
businesses throughout the City,
with each district having the same
maximum number of businesses.
Draft Ordinance:
Yes: 9
Does not necessarily equally
distribute all businesses in all
districts due to zoning and buffers.
No: 3
Absent: 6
2. Recommendation to allow medical
marijuana businesses in all zones
except those that are exclusively
residential, subject to established
buffers.
Yes: 7
No: 5
Absent: 6
1
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
TaskForce Approved
Recommendations
Draft Ordinance:
Yes: 15
No:O
AB 266
SB 643
AB 243
Absent: 3
4. Recommendation to require
cultivation and/or processing sites
be closed to the public.
Yes: 15
No: 0
Absent: 3
5. Recommendation to prohibit print
advertising for medical marijuana
businesses in newspapers and
other circulations.
Yes: 10
No: 5
Absent: 3
2
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
Draft Ordinance:
AB 266
5B 643
AB 243
Yes: 9
No: 6
Absent: 3
7. Recommendation to allot two (2)
points to those operators who
successfully completed the LBMC
5.87 lottery and who continue to
possess the original location of
their medical marijuana business.
Yes: 8
No: 7
Absent: 3
3
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
Draft Ordinance:
A8266
S8643
A8243
Yes: 15
No: 0
Absent 3
9. Recommendation to add 1000 foot
buffers from licensed child care
facilities.
Yes: 8
No: 7
Absent 3
10. Recommendation to consider high
crime areas when determining
which commercial zones are
appropriate for medical marijuana
business operations.
Yes: 14
No: 1
Absent 3
4
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
AB 266
SB 643
AB 243
No: 1
Absent: 4
12. Recommendation to prohibit colocation of medical marijuana
businesses by maintaining 1000
foot buffers between marijuana
businesses.
Yes: 14
No: 0
Absent: 4
13. Recommendation to allow home
delivery by approved and permitted
medical marijuana businesses.
Yes: 13
No: 1
Absent: 4
5
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
AB 266
SB 643
AB 243
Absent: 4
15. Recommendation to allow testing
facilities to determine the amount of
marijuana necessary for testing.
Yes: 13
No: 1
Absent: 4
16. Recommendation that all
applicable testing labs register with
the City.
Yes: 14
No:
Absent: 4
6
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
AS 266
5B 643
AB 243
Yes: 10
No: 4
Absent: 4
18. Recommendation that the City
Council determine the location of
production facilities to create
edibles and extracts.
Yes: 13
No: 1
Absent: 4
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
AB 266
SB 643
AB 243
Yes: 7
No: 5
Absent: 6
20. Recommendation that the City
Council designate funding be
provided for public safety
requirements to the LBPD, LBFD,
and City Attorney's Office.
Yes: 12
No: 0
Absent: 6
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
A8266
S8643
A8243
Yes: 12
No: 0
Absent: 6
22. Recommendation to require
surveillance video recordings be
maintained by medical marijuana
businesses for one year for the
audit surveillance cameras and 30
days for all other surveillance
cameras.
Yes: 12
No: 0
Absent: 6
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
AB 266
SB 643
AB 243
Yes: 12
No:
Absent: 6
24. Recommendation to require the
City to comply with all federal law
reporting requirements on cash
receipts.
Yes: 10
No: 2
Absent: 6
10
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
AB 266
5B 643
AB 243
Yes: 11
No: 0
Absent: 7
26. Recommendation to specify an
application fee in the ordinance.
Yes: 12
No: 0
Absent: 6
27. Recommendation to maintain the
City's ban until further action by the
State.
Yes: 7
No:6
Absent: 5
11
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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Draft Ordinance:
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AB 266
SB 643
AB 243
Yes: 7
No: 6
Absent: 5
29. Recommendation to present Task
Force member Larry King's
ordinance to the City Council.
Yes: 9
No: 4
Absent: 5
12
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B
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AB 266
SB 643
AB 243
30. The City is authorized to enact local
ordinance requirements and establish and
enforce local zoning requirements, AB 266:
Business and Professions Code section
19315(a).
13
Comparison Table of Task Force Recommendations and Current Draft State Legislation - Exhibit B