City Council Public Hearing Subject:

CITY COUNCIL PUBLIC HEARING

NOVEMBER 2.2009

SUBJECT:

AMENDMENT TO THE ZONING ORDINANCE REGARDING MEDICAL MARIJUANA COLLECTIVES

INITIATED BY:

DEPARTMENT OF Joan Engllsh (Assistant Llsa Marie Belsanti (Senlor COMMUNITY DEVELOPMENT DEPARTMENT Anne Browning Mclntosh (Community Developme John Keho (Planning Manager) Laurie Yelton (Associate Planner) DEPARTMENT OF PUB Oscar Delgado (Director) Jeff Aubel (Commercial Code Compliance Manager

STATEMENT ON THE SUBJECT: The Clty Council will consider a C~ty-initiatedZone Text Amendment to change medical marijuana collect~vesfrom a conditionally permitted use to a permitted use in certain commercial zones subject to specified restrictions and consider amend~ngthe municipal code and adoption of a negat~vedeclaration RECOMMENDATION: Introduce on first reading Ordinance No. 09-p "AN ORDINANCE OF THE ClTY OF WEST HOLLYWOOD, AMENDING THE WEST HOLLYWOOD MUNICIPAL CODE AND ADOPTION OF A NEGATIVE DECLARATION AND APPROVAL OF ZONE TEXT AMENDMENT 2009--, TO CHANGE MEDICAL MARIJUANA COLLECTIVES FROM A CONDITIONALLY PERMITTED USE TO A PERMITTED USE IN CERTAIN COMMERCIAL ZONES SUBJECT TO SPECIFIED RESTRICTIONS. REQUIRING SUCH COLLECTIVES TO OBTAIN A REGULATORY BUSINESS LICENSE." (Attachment A) BACKGROUND, In November, 1996, California voters enacted Proposition 215, called "The Compassionate Use Act of 1996 " The Act set forth the circumstances under which marijuana may be prescribed, dispensed and used for medicinal purposes In California as an exception to the laws proh~bitingthe sale and use of marijuana.

AGENDA ITEM

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Several years ago, the City experienced a proliferation of medical marijuana collectives throughout the City's commercial zones. As with many of the City's commercial uses, several mebical marijuana collectives were esiablished inclose proximity to residentially zoned properties and sensitive land uses, such as schools, parks and places of religious worship Consequently, the City Council took a number of actions to limit the impact of medical marijuana collectives on the community and it has adopted regulations governing the location and operation of the facilities The City, as did most cities, initially decided to regulate collectives through a discretionary land use process; I e. by requiring a conditional use permit. Now that we have had some experience with the regulatory experience, staff believes that there are some disadvantages to this approach. For example, a conditional use permit (CUP) runs with the land, meaning that once the CUP is issued for a particular property, the use becomes vested, regardless of the ownership of the collective. Staff believes it is undesirable to create such a right in any particular location Business licensing offers the City more regulatory tools to address the types of concerns that the collectives raise, but would not sacrifice any of the requirements that are currently in place through zoning regulation, indeed, as long as the City maintains a cap on the number of collectives and location requirements that limit the possible locations for establishment of new collectives, the removal of the CUP requirement will have no real practical effect This summer, the City Council directed staff to bring forward a business license ordinance (Attachment A) that would regulate medical marijuana collectives with the same requirements currently in the zoning code and to eliminate the regulations in the Zoning Ordinance. The Council also required that the new ordinance contain language that addressed the cultivation of marijuana and a requirement that each collective have a compassion program for qualifying patients Staff convened a meeting with the four permitted collectives to review the framework for the new regulations. At that meeting the collectives were in support of the following requirements of the new regulations: Require criminal background checks on collective operators Change the nomenclature from medical marijuana "dispensary" to "collective" Require that collectives be organized as a nonprofit and be in compliance with Proposition 215, California Health & Safety Code Section 11362 7 and California State Attorney General Guidelines for marijuana grown for medical use Establish a limit on the total square footage of a collective; not to exceed 4,500 square feet

Allow the on-site cultivation of marijuana Establish a cap on the square footage allowed for on-site cultrvation; no more than twenty-five percent (25%), but in no case more than 1,500 square feet nor greater than ten feet in height. Retain the numerical limit; no more than four collectives within the boundaries of West Hollywood Maintain the location criteria, collectives shall not be established within 500 feet of sensitive land uses and within 1000 feet of another collective within or outside the boundaries of West Hollywood Establish a uniform compassion program for West Hollywood residents Require collectrve operators to participate in regular meetings with City Staff and West Hollywood Sheriffs Department Amending the zoning ordinance and regulating medical marrjuana collectrves under business licensing is a more effective approach. Not only does the proposed ordinance incorporate all of the existing regulations it adds a number of other requirements making it a tighter and more restrictive ordinance. The proposed ordinance provides stringent adherence to existing state law in addition to the guidelrnes set forth by the State Attorney General. In August, the District Attorney and the Sheriff of Los Angeles County jointly sent a cautionary letter to cities warning that, 'We have come to the conclusion that over-the-counter sales of marijuana are patently rllegal under state and federal law." (Attachment B) The letter fails to take account of the comprehensive and thorough approach West Hollywood has taken since the passage of Proposition 215 to provide safe access to treatment that is determined medically necessary by patients and their physicians. West Hollywood has worked closely wrth the Sheriffs Department on this ordinance and it is not anticipated that there will be any law enforcement issues with the collectives that are licensed under the ordinance. While there may be a "marijuana dispensary proliferation phenomenon in Los Angeles County", it is not occurring within the jurisdiction of West Hollywood. CURRENT MEDICAL MARIJUANA COLLECTIVES: At present, there are four permitted medical marijuana collectives located within the City of West Hollywood (Attachment C). However, only one of these four collect~vescomplies with the location requirements.

LA Patients & Caregivers Group* 1 7213 Santa Monica Boulevard only this location complies with location requirement

Medical Marijuana Farmacy 1 7825 Santa Monica Boulevard Alternative Herbal Health Services1 7828 Santa Monrca Boulevard Zen Healing Collective 1 8464 Santa Monica Boulevard

There is a pending dispute over whether the dispensary currently operating at 8921 Sunset Boulevard is operating legally. The City has informed the owner that the dispensary is illegal and must be shut down; the owner has provided the City with documentation which he contends demonstrate that it is operating legally. The City is currently evaluating those documents, but has not yet come to a conclusion. Nonetheless, the uncertain legal status of this dispensary does not affect the validity of the negative declaration, in that staff believes that with the continued imposition of the regulatory conditions being shifted from the zoning ordinance to the business license ordinance, and the addition of new conditions which serve to regulate these activities even more closely than at present, the operation of a limited number of collectives --whether four or five -will not have a significant effect on the environment. CITY COUNCIL ACTIONS: On March 7, 2005 the City Council adopted an urgency ordinance that established a 45-day moratorium on the establishment of new medical marijuana collectives in the City of West Hollywood On April4, 2005 the City Council adopted an extension of the urgency ordinance with expiration on March 7, 2006 On July 18, 2005 the City Council adopted an urgency ordinance that established operating standards for existing medical marijuana collectives. On March 6, 2006 the City Council adopted a one-year extension of the interim urgency ordinance prohibiting the establishment of new medical marijuana collectives in the City of West Hollywood. On February 5,2007 the City Council adopted an amendment of the City of West Hollywood Municipal Code to create a new land use category and location criteria for medical marijuana collectives On July 20, 2009 the City Council directed staff to bring forward a business license ordinance that would regulate medical marijuana collectives with the same requirements currently in the zoning code and to eliminate the regulations in the Zoning Ordinance. BUSINESS LICENSE COMMISSION REVIEW Staff requested that the Business License Commission review the draft ordinance and provide any input/comments to be taken back to City Council for consideration. At the meeting, there was one main concern raised by the Business License Commission, which was to clarify Section 5.70.040(3) to specify that food included products sold for medical use, i e., brownies, suckers, or anything that has a marijuana additive for medical consumption. The Business

L~censeCommission voted 5-0 in favor of the recommendation to the City Councll with the one change as noted above. PLANNING COMMISSION REVIEW: At the Planning Commission meeting of October 15, 2009, three members of the publlc spoke in support of staffs recommendation. One member of the publlc supported the recommendation, but had concerns regarding compassronate dlstributlon for people on a limlted income The Planning Commission had questions about the number of collectrves allowed in the C ~ t yand was supportive of the recommended amendment. The Planning Commission unanimously approved the recomrnendatlon for City Counc~lapproval. CONFORMANCE WITH VISION 2020. This Item is consistent with the ongoing Core Values of Public Safety and Quality of Residential Life. EVALUATION. Removing the CUP requirement for medical mar~juanacollect~vesfrom the zoning ordinance and allowing collectives instead to operate as a permitted use will give the City better regulatory control ENVIRONMENTAL SUSTAINABILITY AND HEALTH: West Hollywood is home to a disproportionately large percentage of persons who suffer from illnesses for which marijuana diminishes suffer~ngand Improves health, such as people with HIVIAIDS and senlors and others afflicted with a variety of chronlc illnesses. OFFICE OF PRIMARY RESPONSIBILITY: City Manager FISCAL IMPACT.

Attachment A. Ordinance No 09-p Amending the West Hollywood Municipal Code Attachment B: July 20, 2009, City Council Approved Staff Report Attachment C: August 6, 2009 letter from Los Angeles County D~strictAttorney Steve Cooley and Sheriff Lee Baca Attachment D: Radius Map of Medical Marijuana Collectives Attachment E: Business License Commission Review Attachment F: Planning Commission Review

ORDINANCE NO. 09

AN ORDINANCE OF THE CITY OF WEST HOLLYWOOD CHANGING MEDICAL MARIJUANA COLLECTIVES FROM A CONDITIONALLY PERMITTED USE TO A PERMITTED USE IN CERTAIN COMMERCIAL ZONES SUBJECT TO SPECIFIED RESTRICTIONS, REQUIRING SUCH COLLECTIVES TO OBTAIN A REGULATORY BUSINESS LICENSE, MAINTAINING THE CURRENT MAXIMUM LIMIT OF FOUR COLLECTIVES IN THE CITY AND LOCATIONAL RESTRICTIONS FOR NEW COLLECTIVES AND AMENDING THE WEST HOLLYWOOD MUNICIPAL CODE The City Council of the City of West Hollywood does hereby ordain as follows: Section I. Findings. Section 19.36.165 of the West Hollywood Municipal Code currently establishes a land use category and regulations for medical marijuana dispensaries, and consolidates the City's regulations for medical marijuana dispensaries in the Zoning Ordinance. The City Council finds that the public interest would be better served by regulating the day-to-day management and operations of medical marijuana collectives through its regulatory business licensing ordinance. T h ~ ordinance s tightens the operating requirements for dispensaries, changes their nomenclature from "dispensaries" to "collectives," shifts the regulatory provisions from the zoning ordinance to the business license ordinance, maintains the cap of four collectives citywide and retains existing locational restrictions for establishment of new collectives This ordinance further eliminates the deadline for closure previously established for nonconforming collectives in existence and operating continuously under the same ownersh~pon or before January 16,2007. Pumose. The purposes of this Ordinance are to recognize and Section 2. protect the rights of qualified patients and primary caregivers through implementat~onof California Health & Safety code Section 11362.5 (adopted as Proposition 215, the "Compassionate Use Act of 1996") (the "Act") and any State regulations adopted in furtherance thereof, and to promote the safe use of and the safe and affordable access to medical marijuana pursuant to the Act. In support of these purposes, the Council recognizes that the assistance of medical marijuana collectives, as defined herein, may in some situations h e .l . ~ promote that safe and lawful access to and consistent and affordable distribution of medical marijuana as permitted by the Act. In further support of the stated the Council additionally recognizes that IawfUl remuneration consistent with -purposes, state law may occur between qualified patients and primary caregivers, including those qualified patients and primary caregivers who associate collectively or cooperatively to produce medical marijuana in accordance with state law. Standards are required to assure that the operations of medical marijuana collectives are in compliance with the Act and any State regulations adopted in furtherance thereof, and to mitigate the adverse secondary effects from operations of collectives. The City Council finds that the

ATTACHMENT A

numerical limits on medical marijuana collectives provided by this Ordinance are necessitated by the small size of the City and the proximity of these uses to residential zones, schools and parks; and further, that the limit is reasonable and not an obstacle to the implementation of Proposition 215. This Ordinance is enacted as a health and safety measure pursuant to the City's police powers as prescribed in Art. XI, Sec. 7 of the California Constitution. Nothing in this Ordinance shall permit an activity that is prohibited by the Act, nor is it intended to interfere with a patient's right to cultivate, possess or use medical marijuana as provided for in California Health & Safety Code Section 1 1362. Nothing contained in this Ordinance shall excuse, facilitate or promote a violation of federal law. Section 3. Section 5.08.010 of T~tle5, Chapter 5.08 of the West Hollywood Municipal Code is amended by adding in alphabetical order a new category (and renumbering the ensuing categories accordingly) as follows.

17. Medical Marijuana ~ o l l e c t i v e ' ~ Section 4. Chapter 5.70 is hereby added to Title 5 of the ~ e s t ~ o l l ~ w o o d Municipal Code to read as follows:

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_ Chapter 5.70 .*

MEDICAL MARIJUANA COLLECTIVES *

5.70.010 Definitions.

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For purposes of thjschzifiter, a " ~ ~ d i cmkrijuana al collective" means a collective, cooperative, association or simg&:entity that cultivates, distributes, dispenses, stores, exchanges, processes 7-. delivers, makes available or gives away marijuana in the City for medical purposqs to qualified:patients, or primary caregivers of qualified patients Health-& Safety Code Section 11362.5 (adopted as Proposition 215, the "Cornpasiionate Use Act of 1996" or any state regulations adopted in furtherance there6f;including ~ e a l t h& Safety'Code Section 11362.7 et seq. (adopted as the "Medical-Marijuana Prograp Act"). The word "marijuana" shall have the same meaning as the definition of that wor&in Health & Safety Code Section ll018. Nothing in this . to conflict with the foregoing provisions of the Health & section shall be'interpreted Safety Code. - . - , ,I

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5.70.020 Application Information.

In addition to the information prescribed by the Director pursuant to the authority set forth in Section 5.08.040, all applications for a license to conduct a medical marijuana collective shall contain the following information.

1. In the event the applicant is not the owner of record of the real property upon which the collective is, or is to be, located the application must be accompanied by a notarized statement and consent from the owner of the property acknowledging that a collective is or will be located on the property. In addition to furnishing such notarized statement, the applicant shall fum~shthe name and address of the owner of record of the property, as well as a copy of the lease or rental agreement pertaining to the premises in which the collective is or will be located.

2. A security plan, including but not limited to l~ghting,alarms and security guard arrangements.

3. An executed release of liability and hold harmless in the form set forth in the City's application form. 4. A description of the procedure for docu&knting the source'of the marijuana to be dispensed by the collect~ve.If the marijuana 1s cultivated off-site, documentation that the off-site location is compliant with the zoning regulations of the jurisdiction in which 11 is located. . . .

5. Text and graphic materials show~ngthe site in the context of the immediate . . ne~ghborhoodand floor plan of the facility.

6. A description of the screening, registration and validation process for qualified patients. , . %,

7. A descrietibn of qualifiid patient records acquisition and retention procedures. 8. A descr$tioh of th6process for tracking medical marijuana quantities and inventory controls, including on-site cultivation (if any), processing and medical marijuana products ieceivkd . . from outside sources. .'

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9 . ~A description ofmeisures taken to minimize or offset energy use from the cultivation' or processing of medical'marijuana. . ;\.

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10. A descr~~tion:of chemicals stored or used on-site and any effluent proposed to be discharged,irito. th2city3s , wastewater or stormwater systems. 11. ~uthorizit'ionfor the City to verify the information and representations contained in the application. 5.70.030 Criteria for Issuance of a License.

1. The applicant, and any existing or prospective manager, must be at least twenty-one years of age.

The applicant, or any existing or prospective manager, must not have had 2. a similar type of license previously revoked or denied for good cause within the immediately preceding two years prior to the license applicat~on. The applicant and proposed manager shall undergo a background 3. mvestigation by the Los Angeles County Sheriffs Department. Neither the applicant nor any proposed or prospective manager or employee shall have been convicted of Any offense relating to possession, manufacture, sales, or (a) distribut~onof a controlled substance, with the exception of marijuana related offenses; , Any offense involving the use of force or violence upon the person (b) of another; \

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Any offense involving theft, Gaud, dishonesty or deceit. ,

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For purposes of this paragraph 3, a conviction'includes a plea or verdict of guilty or a - , conviction following a plea of nolo conrendere. The location for which the license is spught shall not be located within 4 five hundred feet of a public or private day care center or school, or a public park, and othenv~secomply with Section 19.36.1'65; except.the specific operators open and in continuous operation at the same location,on or prior to ~a>uary16,2007. \

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The locition for.$hich the'liceyse is sougkit i'i not located within 1,000 5. feet from any other premises operated by a'medical marijuana collective and otherwise comply with Section '19.36.165, except the specific operators open and in continuous operation at the same location on ofpiior to January 16,2007. , i

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6. . There shall be no more than four collective business licenses issued at any one time: Priority cbnsideration for the first four licenses issued in this category shall be given tbbthe operators that were'open and in continuous operation as of January 16,2007. In the ev&it,that fewer thw four c~llectivesare operating under valid licenses at any time, coniidkration for additional licenses will be given in the order prospective applicants Liplaced on a'wlt list to be maintained by the City.

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Thk applicant must provide a copy of a valid seller's permit issued by the 7. California Board of ~4ualization. 5.70.040 Operating Requirements.

All collectives in the City shall operate in conformance with the follow~ngoperating requirements: 1. Security shall comply with the following minimum standards:

Collectives shall provide adequate security and lighting onsite to ensure the safety of persons and protect the premises from theft at all times. I.

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All security guards employed by collectives shall be licensed and possess a valid Department of Consumer Affairs "Security Guard Card" at all tlmes. Collectives shall not employ securlty guards who possess firearms or tasers. 11.

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111. Collectives shall provide a neighborhood security guard patrol for a two-block radius surrounding the collective during all hours of operation No recommendations for medical-marijuana shall be issued on-site.

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There shall be no on-site sales'bf alcohol or tob8cc0, and no on-site 3. consumption of marijuana (including food containing marijuana as an ingredient), ." alcohol, or tobacco by patrons or employees.". '.:

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Hours of operation . . shall be limitedto: Monday - Saturday, 10.00 4. a.m. - 8.00 p.m. and Sunday noon - 7.00 p:m. .

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Collectives shall~$nlydisPehsk.rqedi'cal marijuana to qualified 5. patients and their caregivers.8~defined by'California - ,.: , Health and Safety Code Section 11362.5 (~ro~osition,215) 'and&y state r&&u1+t1onsadoGted in furtherance thereof, mcluding Health &.&f6ty Code Section 113i62.7 et seq. (adopted as the "Medical Marijuana Prograin'&tn) and wl?o:are members of the collective. This shall include ,rice-iuiicndatioh; pot more than one-year old, for medical possession of a valid 'd2ctor's ' , ... , marijuana.use, by the patient.. , -. -.. ., -. ~

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6. " '.;~olle?ti~ks,shall notify patrons of the following verbally and L.'C.. through posting of a sign.in a c&spicuous location readily visible to persons entering the premises: ., ',

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i. Use of medical marijuana shall be lim~tedto the patient idiiitified'on the doctor's recommendation. Secondary sale, barter or diskibtition of medical marijuana is a crime and can lead to attest.

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n. Patrons must immediately leave the site and not consume medical marijuana until at home or in an equivalent private location. Collective staff shall monitor the site and vicinity to ensure compliance.

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Forgery of medical documents is a felony crime.

Entry into the premises by persons under the age of 18 is iv. prohibited unless they are a qualified patient and accompanied by a parent or legal guardian. Collectives shall only provide marijuana to an individual in an 7. amount consistent with personal medical use. Collectives shall not store more than two hundred dollars 8. ($200.00) in cash reserves overnight on the premises and shall make at least one dally bank drop that includes all cash collected on that business day. 9. Any patient under 18 years of age shall be accompanied by a parent or legal guardian. ,

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10. Collectives shall provide law e$orcement and all neighbors within 100 feet of the collect~vewith the name and phone n h b e r of an on-site copnunity relations staff person to notify if there are operational problems with the estiblishment .

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Collective operator(s) must attendregular meetings with the Los 11. Angeles County Sheriffs Department and City public Safety Division staff to review public safety issues associated with t$e operations. : ....... , _,

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Collectives shallidispenie~marijuanaato, then members only from 12. , , -. "., the following sources. . . . . ., I' . .. -, i: , / i i . . . ...... . .. ' ~

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Limited cult&adon of marijuana on-site is permitted. The ,I. space devoted to,du~tivation;hall not exceed twenty-five percent (25%) of $$in .no-*. c a s h o r e than 1,500 square feet nor greater the tota1.floor .than ten feet in height. -.: .. .>, :,

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ii 'From an off-site location cultivated by the collective in accordance with ipplicable zoning regulations in the jurisdiction in which it is cultivated. '. "

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iii.;. From an individual qualified patient who is a member of the colle
West Hollywood City Code Enforcement Officers, West 13. Hollywood Sheriffs Deputies or other agents or employees of the City requesting admission for the purpose of determining compliance with these standards shall be given unrestricted access.

Collectives shall comply with the provisions of Health & Safety 14. Code Section 11362.5 (adopted as Proposition 215, the "Compassionate Use Act of 1996") or any State regulations adopted in furtherance thereof. Collectives shall develop and implement a program subject to 15 approval of the City to provide subsidized medical marijuana to income eligible patients, ("'compassion program") In accordance with the following criteria: i. Minimum 25% discount to all qualified patients based upon need. i~ Collectives shall not be obliged to provide more than 100 grams per month to eligible patients. iii. Progr am administration Social service provider to qualify,patien& on an annual basis Patients will be provided with a letter as proofof eligibility that expires one year after the date itis issued . ., Collectives will accept eligible patients and keep arecord of , qualified compassion patients criteria-' iv OnsiteIInstant Medical and ~inincial , Need , Eligibility . SSDI ...a Medi-Cal . . . , . ~nem~lo~ecl‘withverification , ,... ~

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Social Service Agency ~ k r i f i e d ~ e d i c a l l ~ i n a n cNeed i a l Eligibility = Section 8 housing~.~erific~ti& . . ;i00%-inc6me bel&~?de;al Poverty Level :. proof of disability - k '' Medical ?ekd such as &kina1 illness, cancer treatment, etc. .\ vi. ~ e s l d e i t ~ , ~ e ~ d i i ,;~- & k p t ..-. ~;&%'for d only ,. , / , . .'. ~ e 3 t : ~ ~ l l & < oresidents

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have a responsible person on the premises to act 16. .~olle~tives,shall as mant!iger and supervise,eyployees~atall times during business hours. Such manager shall belicensed .. pursuant,to,~ecti6ns 5.04.050 and 5.08.040.

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~ o ~ i e c t i v shall e s occupy a space not to exceed 4,500 square feet in

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Collectives shall be organized as nonprofit or not-for-profit 18. cooperative, collective or collaborative associations whose constituent members qualify as "primary caregivers" or "qualified patients" within the meaning of California Health & Safety Code Section 11362.7 etseq. These associations shall be formed for the benefit of their members and shall require membership applications and verification. The organization shall verify status as a caregiver or qualified patient, maintain membership records, track expiration of recommendations, and refuse membership to those who dlvert marijuana for non-medical use. Members shall agree not to distribute the marijuana to non-members or to use the marijuana for non-medicinal purposes. Collectives shall only

acquire marijuana from constituent members (patients andlor caregivers) and only then allocate it to members of the group. 5.70.050 Duration of Marijuana Collective License

- Renewal.

All licenses issued pursuant to this chapter shall expire one year after the date of Issuance; provided, however, that a license may be renewed pursuant to Section 5.08.130 for additional one-year periods upon approval of an application for renewal that compl~es with all provisions of this Title. 5.70.060 Assignment of License Prohibited.

The assignment of or attempt to assign any license issued h s u a n t to this chapter is unlawful and any such assignment or attempt to assigna license s@ll render the license null and void.

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5.70.070 Noncompliance Prohibited.

No person or entity shall dis~ense,distribute;'sell; convey, exchange or give away medical marijuana in the City except in cofnpliance wi$.the ... * provisions of this chapter and Section 19.36.165 of this Code.': ' I, .. \

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Section 5. Section - 19.36.165 ..... of.$tle 19;Chaqier 19.36-is amended in its entirety 'i. .> to read as follows. + . '.. '\.~ ,..f

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Section 19.36;165 Medical ~ a r i j u a n Collectives. a-. "

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A. Definitions. ~or.~uiposes~of-this:sec~n, a "medical marijuana collective" means a collective; coop&ativk, association or similar entity that cultivates, distributes, dispenses:itores, &change's,;pro,cesses, delivers, makes available or gives away marijuha in the City foi?medical purposes to qualified patients, or primary caregivers of qualified patients pursuint.to ~eiltii;&Safety Code Section 11362.5 (adopted as Propositiok215, the " ~ o & ~ a ~ s i o nUse a t e Act of 1996") or any state regulations adopted in furtheraick'thereof, includ;mg Health & Safety Code Section 11362.7 et seq. (adopted as the "~edic'alMarijuanaProgram . .. . Act"). The word "marijuana" shall have the same meaning as the definiti,on-ofthat word in Health & Safety Code Section 11018. Nothing in this section shall be'interpreted to conflict with the foregoing provisions of the Health & Safety Code. For purposes of this section, the word "collective" shall refer to the same uses and activities referred to as "dispensaries" in the prior iteration of this section.

B . Location Criteria. A proposed medical marijuana collective shall he located in compliance with the following requirements: 1 The use shall not be located within a 1,000-foot radius of any other medical marijuana collective located within or outside the city.

2 The use shall not be located within a 500-foot radius of a church, temple, or other places used exclusively for religious worship, or a playground, park, child day care facility, or school that is located within or outside the city For the purposes of this requirement, "school" shall mean any property containing a structure which is used for education or instruction, whether public or private, at grade levels preschool and kindergarten through 12. 3 The collective shall have its primary frontage on one of the following commercial streets: Santa Monica Boulevard, Sunset Boulevard, La Cienega Boulevard, Melrose Avenue, Beverly Avenue, La Brea Avenue or Fairfax Avenue. The use shall not have its primary frontage. on a local residential street providing local circulation. C. The exterior appearance of a collective shall be c6mpatible with commercial structures already constructed or under construction within the immediate neighborhood, to ensure against blight, deterioration, or substantial diminishment or impairment of property values in the vicinity and shall comply with all other applicabli pioperty , ,, ., development and design standards of the ~u6ici:al Code. ;. i

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D. No more than four (4) medical marijuana collectives shall be permitted to operate in the City at any time. Notwithstanding the forkgoing, a medical marijuana collective that was (i) open and in ope?ati$ on January 1.6,2007 under the same continuous ownership and at the same,i6cation and (ii) d6es hot meet the location requirements of this section, shall be allowed to'continue operation in accordance \nth the regulations for non-c
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Section 6. ,~ection19.10.030,Table 2-5, Allowed Uses and Permit Requirements for Commercial and public Zoning Districts, of Title 19, Chapter 19.10 of the West Hollywood Municipal Code is amended to read as follows:

LAND USE Medical Marijuana Collectives

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PERMIT REQUIRED BY ZONE PDCS CA CR SSP P

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Specific Use Regulations

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19.36.165, Chap. 5.70

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Section 7. The definition of "Plant Nurseries and Garden Supply Stores" in Section 19.90.020 of Title 19, Chapter 19.90 is amended to read as follows: Plant Nurseries and Garden Supply Stores. Commercial agricultural establishments engaged in the production of ornamental plants and other nursery products grown under cover or outdoors. Cultivation of marijuana for medicinal or any other purpose is prohibited. Includes stores selling these products, nursery stock, lawn and garden supplies and commercial scale greenhouses. The sale of house plants or other nursery products entirely within a building is also included under "General Retail Stores." Home greenhouses are addressed under "Residential ~ c c e s s o Uses r ~ and Structures."

Section 8 Severability. If any part or bf '&is Ordinance or the --- invalid, the remainder of this application to any person or circumstance is.held Ordinance, including the application of such part of provision to .other persons or circumstances, shall not be affected and shall continue in full force and-effect. To this ,v., end, the provisions of this Ordinance are severable Section 9. Notwithstanding the provisions of,sul;paragraph 17 of Section 5.08 010 of the Municipal Code, a public hearing shall'not be required for the initial , of this Ordinance. business licenses issued pursuant to the, provisions

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PASSED, APPROVED A N D A- .D O P T E.D , .~~~S r , , --- d a y o f ' i

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ATTEST., . C ~ t yClerk

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,2009

ClTY COUNCIL UNFINISHED BUSINESS SUBJECT:

MEDICAL MARIJUANA DISPENSARY REGULATION

INITIATED BY:

DEPARTMENT OF THE CITY MANAGER Joan English (Assistant City Manager) Lisa Marie Belsanti (Senior Management Analyst@ COMMUNITY DEVELOPMENT DEPARTMENT Anne Browning Mclntosh (Community Development Director) John Keho (Planning M a n a g e r a L Laurie Yelton (Associate Planner) DEPARTMENT OF PUBLIC WORKS Oscar Delgado (Director) Jeff Aubel (Commercial Code C~mplianceManager)

STATEMENT ON THE SUBJECT: The City Council will consider directing staff to create a new category of license under the West Hollywood Business License ordinance regarding - the regulation . of medical marijuana dispensaries RECOMMENDATIONS: 1. Direct staff to allow medical marijuana dispensaries as an automatically permitted use, rather than a conditionally permitted use, in the zoning code.

2. Direct staff to bring foward a business license ordinance amendment with the same requirements presently in the zoning ordinance relative to medical marijuana dispensaries, adding requirements such as criminal background checks and compliance with State Attorney General Guidelines.

3. Give staff direction to waive the location requirement for all permitted medical marijuana dispensaries open and in continuous operation since January 16,2007 and keep the numerical limit at four dispensaries. 4. 'Give staff direction to add language that defines any facility used for the growth or cultivation of marijuana plants as a medical marijuana dispensary.

A P C L I

DA ITEM

4.B

BACKGROUND AND ANALYSIS: In Ngvember, 1996, California voters enacted Proposition 215, called "The Compassionate Use Act of 1996." The Act set forth the circumstances under which marijuana may be prescribed, dispensed and used for medicinal purposes in California as an exception to the laws prohibiting the sale and use of marijuana West Hollywood is home to a disproportionately large percentage of persons who suffer from illnesses for which marijuana diminishes suffering, such as people with HIVIAIDS and seniors and others afflicted with a variety of chronic illnesses. As such, the City has comported itself in conformance with Proposition 215. Several years' ago, the City experienced a proliferation of medical marijuana dispensaries throughout the City's commercial zones. As with many of the City's commercial uses, several medlcal marijuana dispensaries were established in close proximity to residentially zoned properties and sensitive land uses, such as schools, parks and places of religious worship. Consequently, the City Council took a number of actions to limit the impact of medical marijuana dispensaries on the commun~tyand it has adopted regulations governing the location and operation of the facilities. City Council Actions: On March 7, 2005 the City Council adopted an urgency ordinance that established a 45-day moratorium on the establishment of new medical marijuana dispensaries in the City of West Hollywood. On April 4, 2005 the City Council adopted an extension of the urgency ord~nancewith expiration on March 7,2006. On July 18, 2005 the City Council adopted an urgency ordinance that established operating standards for existing med~calmarijuana dispensaries. On March 6. 2006 the City Council adopted a one-year extension of the interim urgency ordinance prohibiting the establishment of new medical marijuana d~spensariesin the City of West Hollywood. On February 5, 2007 the City Council adopted an amendment of the City of West Hollywood Municipal Code to create a new land use category and location criteria for medical marijuana dispensaries (Attachment A). Zonina Ordinance Requlations: The operating standards for medical marijuana dispensaries are currently contained in the zoning ordinance. In summary, the zoning ordinance: Requires that all medical marijuana dispensaries must obtain a major conditional use permit (CUP) and come into full compliance with the ordinance or they must cease operations on December 31,2009.

Limits the number of medical marijuana dispensaries to four. States that a dispensary shall not be located within a 1,000-foot radlus of any other dispensary and that a dispensary shall not be located within a 500-foot radius of specified sensitive land uses. Requires that dispensaries comply with enumerated standards and conditions. Current Medical Manruana Dispensaries: At present, there are four permitted medical marijuana dispensaries located within the City of West Hollywood (Attachment B). However, only one of these four dispensaries complies with the location requirements. None of the four existing dispensaries has yet obtained a CUP, but all four have applied and their applications are on file with the Planning Division. In addit~on, because three of the existing dispensaries are not compliant with the location requirements, it is anticipated that unless the Council changes the regulations, these three dispensaries must cease operations by December 31, 2009 at their current locations. Hence, other possible operators have also applied for CUPSto commence new dispensary operations, on the assumption that after January 1, 2010, there will be an opportunity to do so within the maximum 4 cap. As of July 1, 2009 five CUP applications have been submitted and are on file with the Planning Division, and it is staffs intention to process them in the order received. Also, a Zone Text Amendment (ZTA) filing has been received by one of the three existing dispensaries that is out of compliance with the location requirements, seeking to modify those requirements so that it may remain in business at its current location Finally, there is a new and unpermitted medical marijuana dispensary located at 8921 Sunset Boulevard. The prior occupant at that location, West Hollywood Center for Compassionate Healing, was a medical marijuana dispensary that was evicted from the premises by the landlord and has advised the C~tythat it ceased operations at the location on April 29, 2009. (Attachment C). The landlord has now opened a new dispensary on the premises, and contends that he purchased the business from the prior operator. The City sent a letter on June 9, 2009 (Attachment D) informing the property owner to cease operations immediately and staff and the City Prosecutor are taking steps to shut this operation down. Permitted Dispensarv Locations:

.'

LA Patients & Caregivers ~ r o u p (* 7213 Santa Monica Boulevard only this location complres with location requirement

Medical Marijuana Fannacy ( 7825 Santa Monica Boulevard Alternative Herbal Health Services1 7828 Santa Monica Boulevard Zen Healing Collective 1 8464 Santa Monica Boulevard

Medical Mariiuana Cultivation: Currently, there are no facilities wtthin the City of West Hollywood used for the growth and cultivation of marijuana plants. However, Section 19.90.020 in the City's zoning ordinance (Attachment E) could be interpreted to allow for this type of use. Staff is recommending that language be added to the current ordinance or to a busmess license ordinance amendment to define any facility used for the growth or cultivat~onof marijuana plants to be deemed a medical marijuana dispensary. Land Use versus Business License Requlation: The City, as did most cities that elected to allow the operation of medical marijuana dispensaries, initially decided to regulate dispensaries through a discretionary land use process; i.e. by requiring a conditional use permit (CUP). Now that we have had some experience w~ththe regulatory experience, staff believes that there are some disadvantages to this approach. For example, conditional use permits run with the land, meaning that once the CUP is issued for a particular property, that property may be used for a dispensary regardless of and despite changes in the ownership of the dispensary. Staff believes it is undesirable to create such a right in any particular location. Compounding this is the fact that there is no mechanism in the zoning ordinance to determine the criminal background of any future operators for a use operating under a CUP. This is of concern because in 2007 a cache of weapons was found at a dispensary raided by federal law enforcement. Staff is particularly concerned that property owners may be tempted to lease entitled locations to the highest bidder because medical marijuana is so lucrative and this wuld lead to a revolving door of operators. Consequently, land use regulation may not be precisely tailored enough to address staffs concerns that unsc~pulouspotential operators will be able to "game the system". After careful review, staff and the City Attorney have determined that it may better serve the City to remove the CUP requirement for medical marijuana dispensaries from the zoning ordinance, allowing dispensaries instead to operate as a permitted use and to amend the business license ordinance to require that all operators obtain a regulatory business license following a public hearing. Additional requirements may be imposed through the business license, such as criminal background checks, compliance with the California State Attorney General Guidelines (Attachment F), and compliance w~thCalifornia Health & Safety Code section 11362.5 (Attachment G). Business licensing would offer the City more regulatory tools to address the types of concerns that the dispensaries raise, but would not sacrifice any of the requirements that are currently in place through zoning regulation; indeed, as long as the City maintains a cap on the number of dispensaries and location requirements that limit the possible

with C~tyregulations. Representatives from each facility willingly meet with City staff and Sheriffs personnel to discuss impacts to the neighborhood and implement changes to operating procedures when necessary. The City's four permitted medical marijuana dispensaries have the appropriate permits and have no outstanding neighborhood complaints. The unpermitted dispensary at 8921 Sunset ~ouleiardhas received t& citations; one citation for operating without a conditional use permit and another citation for exceeding the numerical limit of four. The case has been referred to the C~tyProsecutor. Crime statistics from each location for the last two years show relatively light activity. From July 2007 - July 2009 there were the following incidents (all locations are reflected in this summary): Robbery - 1 Disturbances - 6 Fight - I Attempted Use of Fake Identification- 1 Burglary - 1 Attempted Burglary - I Lewd Conduct - 1 Alleged Assault - 1 CONFORMANCE WITH VISION 2020: This item is consistent with the ongoing Core Values of Public Safety and Quality of Residential Life. OFFICE OF PRIMARY RESPONSIBILITY: City Manager FISCAL IMPACT: None ATTACHMENTS: Attachment A: City Council adopted amendment of the Municipal Code Attachment 6:Medical Marijuana Dispensaries and Sensitive Uses Radius Map Attachment C: 8921 Sunset Blvd. April 29.2009 letter ceasing operations Attachment D: 8921 Sunset Blvd. June 9,2009 cease and desist operations Attachment E: Section 19.90.020 of the City's zoning ordinance Attachment F: California State Attorney General Guidelines on Med~calMarijuana Attachment G: California Health & Safety Code section 11362.5

LOS ANGELES COUNTY DISTRICT ATTORNEY'S OFFICE I SHERLFF'S DEPARTMENT STEVE COOLEY. DISTRICTATTORNEY

I LEE BAC4 SHERIFF

August 6,2009

Honorable Abbe Land City of West Hollywood 8300 Santa Monlca Boulevard West Holl ood, Californla 90069 Dear b l k a n d For soddztlme, now our organlzatlons have been studylng the marlluana dispensary proliferahon phenomenon in Los Angeles County The prollferatlon of martjuana dlspensarles within certaln cltles in the County of Los Angeles has become a topic of natlonal medla attentton (see "Wlth 'Med Pot' Ralds Halted. Selllng Grass Grows Greener" Wall Street Journal-July 23, 2009 and "L A.'s Reefer Revolution" - t@ Weekly July 16. 2009). The number of medlcal marljuana dlspensarles in Los Angeles County presently exceeds the total number of dispensaries of all other California countles combined

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The proliferation of dispensaries has not been a problem In cltles that have adopted strlct ordinances that require, as a condition of obtaining a buslness Icense, that the buslness comply wlth federal, state, and local laws In thetr practices Enclosed wlth thls letter are examples of such ordinances from the citles of Torrance, Redondo Beach, and Covlna. If your clty has not already done so, your clty may wish to consider adoptlng a simllar ordinance The District Attorney's ORce has carefully researched the law pertalnlng to the Compasstonate Use Act in and Medlcal Marljuan.3 Program, lncludlng the Californla Supreme Court's recent landmark dec~s~an People v Mentch (2008) 45 Cal 4" 274 We have come to the conclusion that over-the-counter sales of marljuana are patently lllegal under state and federal law We hope that the information provided In thls letter will help your clty in protecting the nghts of qualtfied medical marijuana patlents as well as the restdents of your ctty Very truly yours.

STEVE COOLEY Distr~ctAttorney Los Angeles County

/

S ~ n c ~ e l y ,,

)

Sherlff Los Angeles County

Enclosures c

Los Angeles County Pollce Chiefs Los Angeles County City Managers

CLARA SHORTRIDGE FOLTZ CRIMINAL JUSTICE CENTER 1

210 WESTTEMPLE STREET. SUITE 180W

ATTACHMENT C

I LOSANGELES. C/\90012

Medical Marijuana Dispensaries and Sensitive Uses June 16,2009 (Includes Childcare Facilities in Los Angeles)

' . . i '

, Dispensaries Schools Religious Facilities. Parks ChildcareFacilities in West Hollywood.& kos Angeles . . * ... . Dispensaries: F~ 1.8464 Santa Monica Blvd. Zen Healing Coll&be -.2.7825 Santa Monica Blvd. Medical Marijuanatarmac9 3 . 7 q 8 Santa Monica Blvd.- Alternative Herbal Health Services 4.7213 Santa Monica Blvd. - LA Patients and Caregivers Group

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ATTACHMENT D

SEPTEMEBER 22,2009

BUSINESS LICENSE COMMISSION NEW BUSINESS SUBJECT,

MARIJUANA COLLECTIVE LICENSE

INITIATED BY:

DEPARTMENT OF PUBLIC WORKS Jeff Aubel (Commercial Code Compliance Manager) Oscar Delgado (Director of Public Works)

STATEMENT ON THE SUBJECT The Business License Commission is requested to provide input on a draft ordinance for medical marijuana collectives. n

RECOMMENDATION. Comment on the draft ordrnance for Council Consrderation BACKGROUND AND ANALYSIS: In March of 2005, the Crty Council adopted an urgency ordinance in response to a prolrferat~on of Medical Marijuana Dispensaries throughout the C~ty The ordinance established a 45 day moratorium on new dispensar~es. The moratorium was twice extended In February of 2007, the City Council adopted an amendment to the zoning code establishing a new land use category for Medical Marijuana Dispensaries. Currently, there are four permitted dispensaries operating in the City. Additionally, there IS one unpermitted dispensary operating at 8921 Sunset Blvd. Code Cornplrance staff and the City Prosecutor's Office are taking actions to shut this operation down On July 20, 2009 the City Council d~rectedstaff to bring forward a business with the license ordrnance that would regulate medical marijuana d~spensar~es same requirements currently in the zoning code. Council also required that the new ordinance contain language that addressed the cultivatron of marijuana and a requirement that each dispensary have a compassionate use program for qualifying patients. The City, as did most citres, inrt~allydecided to regulate dispensaries through a discretionary land use process, i e. by requiring a conditional use permrt. Now that we have had some experience wrth the regulatory experience, staff believes that there are some disadvantages to this approach. For example, conditional use permits run w ~ t hthe land, meaning that once the CUP is Issued for a

particular property, the use becomes vested, regardless of the ownership of the dispensary. Staff believes it is undesirable to create such a right in any particular location. Further, there is no mechanism in the zoning ordinance to determine the criminal background of any future operators for a use operating under a CUP. This is of concern because in 2007 a cache of weapons was found at a dispensary raided by federal law enforcement. Staff is particularly concerned that property owners may be tempted to lease entitled locations to the highest bidder because medical marijuana is so lucrative and this could lead to a revolving door of operators. Consequently, land use regulation may not be precisely tailored enough to address staffs concerns that unscrupulous potential operators will be able to "game the system". After careful review, staff and the City Attorney determined that it may better serve the City to remove the CUP requirement for medical marijuana dispensaries from the zoning ordinance, allowing dispensaries instead to operate as a permitted use and to amend the business license ordinance to require that all operators obtain a regulatory business license following a public hearing. The new business license ordinance will change the nomenclature from Medical Marijuana Dispensary to Medical Marijuana Collective and require that all operators comply with Proposition 215. Additionally, it will require that applicants undergo a criminal background check by the Department of Justice. Applicants will be denied if they have a prior conviction for use of force or violence upon the person of another, theft, fraud or any conviction relating to any drug other than marijuana. The location criteria will remain the same and require that collectives not be located within 1000 feet of each other or within 500 feet of any school, day care, park or house of worship except the specific operators in operation at the same location prior to January 16, 2007. Additionally, there shall be no more than 4 collectives at any one time operating in the City. Priority for the first 4 licenses shall go to the collective operators that were in operation prior to January 16, 2007. Operating requirements under the new ordinance state that collectives shall submit a security operations plan that will include security patrols for a two block radius in the surrounding neighborhood. Security guards employed by the collective must be licensed by the State of Cal~forniaDepartment of Consumer Affairs and may not carry a firearm or a tazer. Collectives shall not dispense to any person that does not have a valid doctor's recommendation and shall not allow patients to med~cateon the premises or in the surrounding neighborhoods Operators shall also provide a phone number of an on-site community relations person to law enforcement and neighbors within

100 feet to notify the collective of any problems or complaints Cultivation of marijuana under the new ordinance shall be l~mited25 percent of the total floor area not to exceed 1500 square feet or greater than 10 feet in height. Staff asks that the Commiss~onreview the draft ordinance and provide any inputlcomments to be taken back to City Counc~lfor consideration. CONFORMANCE WITH VISION 2020. This item is consistent with the ongoing Core Values of Public Safety and Quality of Residential Life. OFFICE OF PRIMARY RESPONSIBILITY: Department of Public Works, Commercial Code Compliance Division FISCAL IMPACT None ATTACHMENTS: A. Draft Ordinance 6.City Counc~lStaff Report C. Councll Minutes for Monday, July 20, 2009

October 15, 2009

PlANNlNG COMMISSION PUBLIC HEARING SUBJECT:

AMENDMENT TO THE ZONING ORDINANCE REGARDING MEDICAL MARIJUANA DISPENSARIES

INITIATED BY,

DEPARTMENT OF COMMUNITY DEVELOPMENT (Laurie Yelton. Associate Planner)

STATEMENT ON THE SUBJECT The Plannrng Commission will hold a publ~chearlng on a Clty-in~tiatedZone Text Amendment to change medical marijuana d~spensariesfrom a conditionally permitted use to a permitted use in certain commercial zones subject to specifled restrictions, requiring such dispensaries to obtain a regulatory byiness license, maintalnlng the current maxlmum limit of four dispensaries, locatlonal restrictions for new dispensaries, changing the nomenclature from dispensary to collective, and amending the affected sectlons of the West Hollywood Municipal Code (WHMC). RECOMMENDATION Staff recommends that the Commission hold the public hear~ng,consider all pertinent testimony and adopt the following: 1) Resolution No. PC 09-854 "A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD, RECOMMENDING TO THE CITY COUNCIL ADOPTION OF A NEGATIVE DECLARATION AND APPROVAL OF ZONE TEXT AMENDMENT 2008-006 TO CHANGE MEDICAL MARIJUANA DISPENSARIES FROM A CONDITIONALLY PERMITTED USE TO A PERMITTED USE IN CERTAIN COMMERCIAL ZONES SUBJECT TO SPECIFIED RESTRICTIONS, REQUIRING SUCH DISPENSARIES TO OBTAIN A REGULATORY BUSINESS LICENSE, MAINTAINING THE CURRENT MAXIMUM LIMIT OF FOUR DISPENSARIES, LOCATIONAL RESTRICTIONS FOR NEW DISPENSARIES, CHANGING THE NOMENCLATURE FROM DISPENSARY TO COLLECTIVE, AND AMENDING THE WEST HOLLYWOOD MUNICIPAL CODE. " (EXHIBIT A) BACKGROUND Application Information A. Applicant: B. Location. ZoninglGeneral Plan: C. D. Environmental Status: Publ~cNotice. E.

City of West Hollywood Citywide Commercial Zones Negative Declaration The public hearing held on October 15, 2009 was advertised as requlred by the WHMC. Page 1 of 7

ATTACHMENT F

Californ~aEnvironmental Quality Act (CEQA) The proposed changes have been determined to be unlikely to result in any potentially significant impacts, and a Negative Declaration has been prepared pursuant to the requirements of the CEQA The Negative Declaration is attached to this report as Exhibit B.

Histon/ In November. 1996, California voters enacted Proposition 215, called "The Comuassionate Use Act of 1996 " The Act set forth the circumstances under which marihana may be prescribed, dispensed and used for medicinal purposes in California as an exception to the laws prohibiting the sale and use of marijuana Several years ago, the City experienced a proliferation of medical marijuana dispensaries throughout the City's commercial zones. As with many of the City's commercial uses, several medical marijuana dispensaries were established in close proximity to residentially zoned properties and sensitive land uses, such as schools, parks and places of religious worship Consequently, the City Council took a number of actions to limit the impact of medical marijuana dispensaries on the community and it has adopted regulations governing the location and operation of the facilities. On March 7, 2005, the City Council adopted an urgency ordinance that established a 45-day moratorium on the establishment of new medical marijuana dispensaries in the City of West Hollywood. On April 4, 2005 the City Council adopted an extension of the urgency ordinance with expiration on March 7, 2006. On July 18, 2005 the City Council adopted an urgency ordinance that established operating standards for existing medical marijuana dispensaries. On March 6, 2006 the City Council adopted a one-year extension of the interim urgency ordinance prohibiting the establishment of new medical marijuana dispensaries in the City of West Hollywood. On February 5, 2007 the City Council adopted an amendment of the City of West Hollywood Municipal Code to create a new land use category and location criteria for medical marijuana d~spensaries. The City, as did most cities, initially decided to regulate dispensaries through a discretionary land use process, i.e. by requiring a conditional use permit Now that we have had some experience with the regulatory experience, staff believes that there are some disadvantages to this approach. For example, a conditional use permit (CUP) runs with the land, meaning that once the CUP is issued for a particular property, the use becomes vested, regardless of the ownership of the dispensary. Staff believes it is undesirable to create such a right in any particular location. Further, there is no mechanism in the zoning ordinance to determine the criminal background of any future operators for a use operating under a CUP. Staff is particularly concerned that property owners may be tempted to lease entitled locations to the hiahest bidder because medical mariiuana is so lucrative and this could lead to a revolving door of operators. Consequently, land use regulation may not be precisely tailored enough to address staff's concerns that unscruuulous potential ouerators will be able to "game the system "

-

After careful review, staff and the City Attorney determined that it may better serve the City to remove the CUP requ~rementfor medical marijuana dispensar~esfrom the zoning ordinance, allowing dispensaries rnstead to operate as a permitted use and to amend the business license ordinance to requlre that all operators obtain a regulatory business license following a public hearing. On July 20, 2009 the City Counc~ldirected staff to brrng forward a business lrcense ordinance that would regulate medical marijuana dispensar~es w~th the same requirements currently in the zonlng code and to eliminate the regulat~onsin the Zon~ng Ordinance. The Council also required that the new ordinance contain language that addressed the cultivation of marijuana and a requirement that each dispensary have a compassionate use program for qual~fyingpatients. Business License Commission Rev~ew Staff requested that the Business License Comm~ssionreview the draft ordinance (Exhibit D) and provide any inpuffcomments to be taken back to City Council for cons~deration. At the meeting, there was one main concern raised by the Bus~ness License Commission, which was to clarify Section 5.70.040(3) to specify that food rncluded products sold for medical use, i.e., brownies, suckers, or anyth~ngthat has a marijuana additive for medical consumption. One Business License Commissioner had concerns about the maximum $200 cash limit, as there could potentially be multiple cash drops throughout the day, and the person making the cash drops could presumably be the target of potentral robbery. There were two public comments supporting Staffs recommendation. The Bus~nessLicense Commissron voted 5-2 (Commissioner Barker recused and Comm~ss~oner Reichard excused) in favor of the recommendation to the City Council with the one change as noted above.

ANALYSIS D~scussion As discussed by the City Council on July 20, 2009, the City finds that the public interest would be better served by regulating the day-to-day management and operations of med~calmarijuana collectives through its regulatory business licensing ordinance. The revised ordinance would tighten the operating requirements for dispensaries, change their nomenclature from "dispensaries" to "collectives," shift the regulatory provis~ons from the zoning ord~nanceto the business license ordinance, maintain the cap of four collectives citywide and retain existing locational restrrctions for establishment of new collectives. The ordinance would further elim~natethe deadline for closure previously established for non-conforming collectives in existence and operating under the same ownership on or before January 16,2007. The purpose of the proposed Ordinance is to recognize and protect the rights of qualified patients and primary caregivers through ~mplementationof California Health & Safety Code Section 11362.5 (adopted as Proposition 215, the "Compassionate Use Act of 1996") (the "Act") and any State regulations adopted in furtherance thereof, and to promote the safe use of and the safe and affordable access to medical marijuana pursuant to the Act. Standards are required to assure that the operations of medical mar~juanacollectives are in compliance with the Act and any State regulations adopted

In furtherance thereof, and to mrtigate the adverse secondary effects from operations of collectives. The City finds that the numerical limits on medical marijuana collectives provided by this Ordinance are necessrtated by the small size of the City and the proximity of these uses to residential zones, schools and parks, and further, that the limit IS reasonable and not an obstacle to the implementation of Proposition 215. The proposed Ordinance is enacted as a health and safety measure pursuant to the City's police powers as prescrrbed in Art. XI, Sec. 7 of the California Constitution. In order to accomplish the changes directed by the City Council, four changes are proposed: 1 Definition from "Medical Marijuana Dispensary" to "Medrcal Marrjuana Collective", 2. Definition of "Plant Nurseries and Garden Supply Stores", changing Medical Marijuana Dispensaries from a condit~onallypermitted use to a permitted use through a Business License, and an amendment to Section 19.36.165 of Title 19, Chapter 19.36 of the West Hollywood Municipal Code. Amendment to Definrtions The definitron of "Medical Mariiuana Collective" in Section 19 90 020 of Title 19. Chapter 19.90 of the West ~ollywoodMunicipal Code to read as follows: Medical Marijuana Collective For purposes of thrs chapter, a "medrcal marijuana collective" means a facility where marijuana IS made available for medrcal purposes in accordance with Health & Safety Code Section 11362.5 The word "marijuana" shall have the same meanrng as the definition of that word in Health & Safety Code Section 11018 The definition of "Plant Nurseries and Garden Supply Stores" in Section 19.90.020 of Title 19, Chapter 19.90 of the West Hollywood Municrpal Code is amended to read as follows. Plant Nurseries and Garden Supply Stores: Commercial agrrcultural establishments engaged in the production of ornamental plants and other nursery products grown under cover or outdoors. Cultivation of marijuana for medicinal or any other purpose is prohibited. Includes stores selling these products, nursery stock, lawn and garden supplies and commercral scale greenhouses. The sale of house plants or other nursery products entirely within a buildrng is also included under "General Retail Stores." Home greenhouses are addressed under "Residential Accessory Uses and Structures." Amendment to Commercial Permitted uses Sectron 19.10.030. Table 2-5, Allowed Uses and Permit ~equirements'forCommercral and Public Zoning Districts, of Title 19, Chapter 19.10 of the 'west Hollywood Municipal Code is amended to read as follows'

LAND USE Medical Marijuana Collectives

PERMIT REQUIRED BY ZONE PDCS CN CA PF CR SSP

P

P

P

P

--

--

Specific Use Regulations 19.36.165, Chapter 5 70

Section 19.36.165 of Title 19, Chapter 19.36 is amended in its entirety to read as follows: Section 19.36 165 Medical Marijuana Collectives A. Definitions. For purposes of this Ordinance, a "medrcal marijuana collectrve" means a facility where marrjuana is made available for medical purposes in accordance with Health & Safety Code Section 11362.5 et seq The word "marijuana" shall have the same meaning as the defrnition of that word in Health & Safety Code Section 11018. For purposes of this section, the word "collective" shall refer to the same uses and activities referred to as "dispensaries" in the prior iteration of this section.

B. Location Criteria. A proposed medical marijuana collective shall be located in compliance with the following requirements' 1. The use shall not be located within a 1,000-foot radius of any other medical marijuana collective located within or outside the city

2. The use shall not be located within a 500-foot radius of a church, temple, or other places used exclusively for religious worship, or a playground, park, child day care facilrty, or school that IS located within or outside the city. For the purposes of this requirement, "school" shall mean any property containing a structure wh~chIS used for education or instruction, whether publrc or prrvate, at grade levels preschool and krndergarten through 12. 3. The collective shall have its primary frontage on one of the followrng commercral streets' Santa Monica Boulevard, Sunset Boulevard, La Cienega Boulevard, Melrose Avenue, Beverly Avenue, La Brea Avenue or Fairfax Avenue. The use shall not have its primary frontage on a local residential street providing local crrculat~on. C. The exterror appearance of a collective shall be compatible with commercial structures already constructed or under construction within the immediate neighborhood, to ensure against blight, deterioration, or substantial diminishment or lmparrment of property values in the vicinity and shall comply with all other applicable property development and design standards of the Municipal Code. D. No more than four (4) medical marijuana collectives shall be permitted to operate in the City at any time. Notwithstanding the foregoing, a medical marijuana collective that was (i) open and in operation on January 16, 2007 under the same continuous ownershrp and at the same location and (ii) does not meet the location requrrernents of this sectron, shall be allowed to continue operation in accordance with the regulations for non-conforming land uses in Section 19.72 050 subject to Page 5 of 7

compliance with the standards of Chapter 5.70. Any collective that does not meet the location requirements of this section and is discontinued, changes ownership or has ceased operations for 30 days or more shall not be re-established on the site and any further use of the site shall comply with all applicable provisions of the Municipal Code. lnventorv of existins medical mariiuana dispensaries The map shown below is an inventory of existing medical marijuana dispensaries in the City of West Hollywood. As the map portrays, all of the dispensaries are located along Santa Monica Boulevard. 1. LA Patients and Caregivers Group 2. Alternative Herbal Health Services 3. Medical Marijuana Farmacy 4. Zen Healing Collective

7213 Santa Monica Blvd. 7828 Santa Monica Blvd. 7825 Santa Monica Blvd. 8464 Santa Monica Blvd.

Code Compliance The Code Compliance Division has indicated that they do not have any issues with changing medical marijuana dispensaries from a conditionally permitted use to a permitted use in certain commercial zones subject to specified restrictions and requiring such dispensaries to obtain a regulatory business license. WEST HOLLYWOOD STATUTES AND FINDINGS OF FACT

Zone Text Amendments The Zoning Ordinance permits amendments to the Zoning Ordinance, whenever required by public necessity and general welfare. Amendments to the Zoning Ordinance may modify any procedures, provisions, requirements, or standards, applicable to the Page 6 of 7

development, or use of property in the City. The Commission shall make a written recommendation to the Council whether to approve, approve in modified form, or deny the proposed amendment, based on the findings contained in Section 19.78.060 (Findings) of the Zoning Ordinance. The recommendation shall be by resolution carrled by the affirmative vote of the majority of the Commission. The specific findings are made in the proposed draft Resolution No. PC 09-854

EXHIBITS Draft Resolution No. PC 09-854 A. B. Negative Declaration C. Draft Ordinance D Business License Commission Staff report dated September 22. 2009