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ORD 555ORDINANCE NO.555 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AMENDING SECTIONS OF CHAPTER 5.90 OF, AND ADDING CHAPTER 5.91 TO, THE LA QUINTA MUNICIPAL CODE, RELATING TO THE REGULATION OF THE DELIVERY OF MEDICAL CANNABIS IN THE CITY OF LA QUINTA AND CONFORMING AMENDMENT PURSUANT TO STATE ADULT USE OF MARIJUANA ACT WHEREAS, on November 5, 1996, the voters of the State of California approved Proposition 215, codified as Health and Safety Code Section 11362.5 et seq., and entitled the Compassionate Use Act of 1996 ("CUA"). The CUA exempts qualified patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis (marijuana) for personal medical use; and WHEREAS, the intent of the CUA was to enable persons in the State of California who are in need of cannabis for medicinal purposes to obtain it and use it under limited, specified circumstances; and WHEREAS, the State Legislature enacted Senate Bill 420 in October 2003, codified a Health and Safety Section 11362.7, et seq., ("Medical Marijuana Program Act," or "MMPA") to clarify the scope of the Compassionate Use Act of 1996 and to allow cities and other governing bodies to adopt and enforce rules and regulations consistent with SB 420. The MMPA created a state -approved voluntary medical cannabis identification card program and provided for certain additional immunities from state cannabis laws. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the Medical Marijuana Program to expressly recognize the authority of counties and cities to "[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana [cannabis] cooperative or collective" and to civilly and criminally enforce such ordinances; and WHEREAS, the CUA and MMPA do not "legalize" cannabis, but provide limited defenses to certain categories of individuals with respect to certain conduct and certain state criminal offenses; and WHEREAS, in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal.4th 729, the California Supreme Court held that "[n]othing in the CUA or the MMP expressly or impliedly limits the inherent authority of a local jurisdiction, by its own ordinances, to regulate the use of its land[,]"; and WHEREAS, the Federal Controlled Substances Act, 21 U.S.C. § 801 et seq., classifies marijuana [cannabis] as a Schedule 1 Drug, which is defined as a drug or other substance that has a high potential for abuse, that has no currently accepted Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quints Municipal Code Adopted: March 21, 2017 Page 2 of 19 medical use in treatment in the United States, and that has not been accepted as safe for use under medical supervision. The Federal Controlled Substances Act makes it unlawful under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute or dispense, cannabis. The Federal Controlled Substances Act contains no exemption for medical purposes; and WHEREAS, on October 9, 2015 Governor Brown signed three bills into law (AB 266, AB 243, and SB 643) which collectively are known as the Medical Marijuana Regulation and Safety Act ("MMRSA"). MMRSA established a state licensing scheme for commercial medical cannabis uses while protecting local control by requiring that all such businesses must have a local license or permit to operate in addition to a state license. MMRSA allows a City to regulate cannabis delivery activities; and WHEREAS, the City Council finds that unregulated cannabis delivery activities can adversely affect the health, safety, and well-being of City residents. Citywide regulation and licensing of medical cannabis delivery is proper and necessary to minimize the risks of criminal activity and other impacts that may result from such activities; and WHEREAS, pursuant to the MMRSA, on or about January 19, 2016, the City Council adopted Ordinance No. 532, which added Chapter 5.90 to the La Quinta Municipal Code, prohibiting throughout the City all Cannabis related uses, including but not limited to "Cooperatives," "Cultivation," "Deliveries," "Dispensaries," and other "Commercial Cannabis Activities" (as defined in Chapter 5.90) for which a state license is required under the MMRSA; and WHEREAS, in response to concerns raised by members of the public and residents of the City, the City Council directed the formation of the Ad Hoc Cannabis Committee to review and evaluate a potential amendment to the La Quinta Municipal Code that would allow for limited delivery of medical cannabis to residents within the City that would otherwise not have the ability to obtain easily medical cannabis under the City's ban of all Commercial Cannabis Activities; and WHEREAS, on November 8, 2016, California voters approve Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (the "Adult Use Act"), which generally sets forth comprehensive statutory provisions regulating nonmedical/recreational cannabis at all levels of use and commerce; and WHEREAS, the Adult Use Act authorizes local jurisdictions to enforce state laws and regulations for nonmedical/recreational cannabis businesses, to enact additional local requirements for nonmedical/recreational cannabis businesses, and to ban nonmedical/recreational businesses; and Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 3 of 19 WHEREAS, the Adult Use Act (Health and Safety Code sections 11362.1(a)(3) and 11362.2(b)(2)) authorizes "personal use" of nonmedical/ recreational cannabis for persons 21 years of age or older, and the Adult Use Act specifically allows such persons to possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants and possess the marijuana produced by the plants, and state law preempts local jurisdictions from completely prohibiting persons engaging in this personal use of nonmedical/recreational cannabis inside a private residence or inside a fully enclosed and secure accessory structure to a private residence located on the grounds of a private residence; and WHEREAS, the Adult Use Act (Business and Professions Code section 26080(b)) preempts local jurisdictions from preventing transportation of cannabis or cannabis products on public roads by a licensee transporting cannabis or cannabis products in compliance with state law, but the Adult Use Act (Business and Professions Code sections 26090(b) and 26200(a)) specifically authorizes local jurisdictions to adopt and enforce local ordinances that regulate, or completely prohibit, nonmedical/recreational cannabis businesses that may be licensed to operate under the Adult Use Act, including businesses that may be licensed under state law for the delivery of nonmedical/recreational cannabis or cannabis products; and WHEREAS, after multiple meetings and discussions, including with the City Attorney's Office and other interested stakeholders, the Ad Hoc Cannabis Committee has submitted a proposed ordinance for consideration by the City Council. NOW, THEREFORE, the City Council of the City of La Quinta does ordain as follows: SECTION 1: Recitals. The foregoing recitals are true and correct and are incorporated herein as though set forth in full. SECTION 2: Authority. This ordinance is adopted pursuant to the authority granted by the California Constitution and state law, including but not limited to Article XI, Section 7 of the California Constitution, the CUA, the MMPA, and the MMRSA. SECTION 3; Adoption. Sections 5.90.010 and 5.90.020 of the La Quinta Municipal Code are hereby amended, and Chapter 5.91 is hereby added to the La Quinta Municipal Code, as written in "Exhibit A" attached hereto. SECTION 4: Cumulative Ordinance. Nothing in this Ordinance shall be interpreted to allow any land use which is not expressly listed as permitted or conditionally permitted within the City's Zoning Code. SECTION 5: CEQA Determination. In adopting this Ordinance, the City Council finds that the project is categorically exempt from the California Environmental Quality Act Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 4 of 19 (CEQA) pursuant to Title 14 California Code of Regulations Sections 15061(b)(3) and 15378, in that it can be seen with certainty that the adoption of the Municipal Code amendments propose no activity that may have a significant effect on the environment and will not cause a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. SECTION 6: Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more section, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional. SECTION 7: Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its adoption. SECTION 8: Posting. The City Clerk shall, within 15 days after passage of this Ordinance, cause it to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 21st day of March, 2017 by the following vote: AYES: Council Members Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans NOES: None ABSENT: None ABSTAIN: None C\� LINDA EVANS, Mayor City of La Quinta, California A T: SUSAN MAYSELS, City C erk City of La Quinta, California (CITY SEAL) Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 5 of 19 APPROVED AS TO FORM: r WILLIAM H. IHRKE, City Attorney City of La Quinta, California Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quints Municipal Code Adopted: March 21, 2017 Page 6 of 19 EXHIBIT A 5.90.010 Definitions. "Cannabis" shall mean all parts of the plant Cannabis sativa linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means "marijuana" as defined by Section 11018 of the California Health and Safety Code, and Section 26001(s) of the California Business and Professions Code, as may be amended from time to time. The term "Cannabis" shall also have the same meaning as "cannabis" set forth in Section 19300.5(f) of the California Business and Professions Code, as may be amended from time to time. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. "Cannabis accessories" shall have the same meanings as "marijuana accessories" as defined in Section 11018.2 of the California Health and Safety Code, and Section 26001(t) of the California Business and Professions Code, as may be amended from time to time. "Cannabis products" shall have the same meanings as "marijuana products" as defined in Section 11018.1 of the California Health and Safety Code, and Section 26001(u) of the California Business and Professions Code, as may be amended from time to time. "Caregiver" or "primary caregiver" shall have the same meaning as set forth in Section 11362.7 of the California Health and Safety Code, as may be amended from time to time. "Commercial cannabis activity" shall have the same meaning as set forth in Section 19300.5(k) of the California Business and Professions Code, as may be amended from time to time. "Commercial cannabis activity" shall also have the same meaning as a cannabis or marijuana "operation" as defined in Section 26001(w) of the California Business and Professions Code, as may be amended from time to time. The "Control, Regulate and Tax Adult Use of Marijuana Act" or "Adult Use Act" shall mean and refer to that the provisions of law adopted by the voters by statewide ballot initiative (Proposition 64) on the November 8, 2016 General Election, as those provisions of law may be amended from time to time. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 7 of 19 "Cooperative" shall mean two or more persons collectively or cooperatively cultivating, using, transporting, possessing, administering, delivering, or making available cannabis, with or without cultivation. "Cultivation" or "cultivate" shall have the same meanings as set forth in Section 19300.5(l) and Section 26001(e) of the California Business and Professions Code, as may be amended from time to time. "Delivery" shall have the same meanings as set forth in Section 19300.5(m) and Section 26001(h) of the California Business and Professions Code, as may be amended from time to time. "Dispensary" shall have the same meaning set forth in Section 19300.5(n) of the California Business and Professions Code, as may be amended from time to time. For purposes of this chapter, dispensary shall also include a cooperative. Dispensary shall not include the following uses: (1) a clinic licensed pursuant to Chapter 1 of Division 2 of the California Health and Safety Code; (2) a health care facility licensed pursuant to Chapter 2 of Division 2 of the California Health and Safety Code; (3) a residential care facility for persons with chronic life threatening illnesses licensed pursuant to Chapter 3.01 of Division 2 of the California Health and Safety Code; (4) a residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the California Health and Safety Code; (5) a residential hospice or home health agency licensed pursuant to Chapter 8 of Division 2 of the California Health and Safety Code. "Distribution" or "distribute" shall have the same meaning as set forth in Section 260010) of the California Business and Professions Code, as may be amended from time to time. "Manufacture" shall have the same meaning as set forth in Section 26001(q), and "manufacturer" shall have the same meaning as set forth in Section 26001(r), of the California Business and Professions Code, as may be amended from time to time. "Medical cannabis" or "cannabis" shall have the same meaning as set forth in Section 19300.5(ag) of the California Business and Professions Code, as may be amended from time to time. "Medical Marijuana Regulation and Safety Act" or "MMRSA" shall mean and refer to the following three bills signed into law on October 9, 2015, as the same may be amended from time to time: AB 243, AB 266, SB 643. "Qualifying patient" or "qualified patient" shall have the same meaning as set forth in Section 11362.7 of the California Health and Safety Code, as may be amended from time to time. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quints Municipal Code Adopted: March 21, 2017 Page 8 of 19 5.90.020 Prohibitions. A. Cannabis Related Uses. Except as provided in Chapter 5.91, all cannabis related uses, including, but not limited to, cooperatives, cultivation, deliveries, dispensaries, distribution, manufacture, and other commercial cannabis activities for which a state license is required under the MMRSA and the Adult Use Act, including cannabis uses and operations relating to cannabis accessories and cannabis products, are prohibited throughout the city. The city shall not issue any permit, or process any license or other entitlement for any cannabis related use or any other activity for which a state license is required under the MMRSA. No person shall establish, operate, conduct, permit or allow any cannabis related use anywhere within the city as prohibited under this paragraph. B. Commercial Cannabis Activities. Except as provided in Chapter 5.91, all commercial cannabis activities, including, but not limited to, cooperatives, cultivation, deliveries, and dispensaries, distribution, and manufacturing, are expressly prohibited throughout the city regardless of whether or not the commercial cannabis activity is for medical cannabis or cannabis used for medicinal purposes. The city shall not issue any permit, or process any license or other entitlement for any commercial cannabis activity. No person shall establish, operate, conduct, permit or allow a commercial cannabis activity anywhere within the city. C. Cannabis Deliveries. Except as provided in Chapter 5.91, all deliveries of cannabis and medical cannabis are expressly prohibited in the city. No person shall conduct any deliveries of cannabis or medical cannabis that either originate or terminate at any location within the city. D. Cannabis Cultivation. Except as provided in Chapter 5.91, the cultivation of cannabis, regardless of whether for commercial or non-commercial purposes, and including cultivation by a qualified patient or primary caregiver is expressly prohibited throughout the city. No person, including, but not limited to, a qualified patient or primary caregiver, shall cultivate any amount of cannabis in the city, regardless of whether or not the cannabis is intended to be used for medical purposes. [NO FURTHER AMENDMENTS TO CHAPTER 5.901 Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 9 of 19 CHAPTER 5.91 is added to the La Quinta Municipal Code, to read: CHAPTER 5.91 MEDICAL CANNABIS DELIVERY SERVICES 5.91.010 Definitions. "Cannabis" shall have the same meaning as set forth in Section 5.90.010 of this code. "Cannabis accessories" shall have the same meanings as set forth in Section 5.90.010 of this code. "Cannabis products" shall have the same meanings as set forth in Section 5.90.010 of this code. "Caregiver" and "primary caregiver" shall have the same meaning as set forth in Section 5.90.010 of this code. "Commercial Cannabis Activities" shall have the same meaning as set forth in Section 5.90.010 of this code. The "Control, Regulate and Tax Adult Use of Marijuana Act" or "Adult Use Act" shall have the same meaning set forth in Section 5.90.010 of this code. "Delivery Driver" shall mean any person who drives or operates a Delivery Vehicle for a Delivery Service in which Medical Cannabis is delivered. "Delivery Service" shall mean a person engaged in the business, whether for profit or nonprofit, of owning, controlling and/or operating one or more Delivery Vehicles which transport, carry, distribute, and/or deliver Medical Cannabis anywhere in the city. "Delivery Service" also includes the use of any technology platform owned, controlled, or operated by any person that enables Qualified Patients or Primary Caregivers to arrange for or facilitate the commercial transfer of Medical Cannabis. "Delivery Service" also includes any dispensary that provides for the delivery of Medical Cannabis as described in Section 19300.5(m) of the California Business and Professions Code. "Delivery Vehicle" shall mean a motor vehicle, as that term is defined in the California Vehicle Code, used for the transportation of Medical Cannabis. "Medical Cannabis" shall have the same meaning as set forth in Section 19300.5(ag) of the California Business and Professions Code, as may be amended from time to time. "Medical Cannabis" also means "medical cannabis products" as described in Section 19300.5(ag) of the California Business and Professions Code. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 10 of 19 "Medical Cannabis Delivery Service License" and "license" shall mean a license issued pursuant to this chapter to a Delivery Service. "Person" shall mean any individual person, firm, association, organization, partnership, joint venture, business trust, corporation, company, or entity of any kind whatsoever. "Qualified Patient" shall have the meaning set forth in California Health and Safety Code section 11362.7, as may be amended from time to time. 5.91.020 Medical Cannabis Delivery Service License. A. All Commercial Cannabis Activities are prohibited in the city except for: 1. A Delivery Service to deliver Medical Cannabis to a Qualified Patient from a Delivery Vehicle authorized pursuant to this chapter; 2. Personal use pursuant to Sections 11362.1(a)(3) and 11362.2(b)(2) of the California Health and Safety Code, as may be amended from time to time; and 3. Transportation of cannabis or cannabis products on public roads by a licensee transporting cannabis or cannabis products in compliance with the Adult Use Act, pursuant to Section 26080(b) of the California Business and Professions Code, as may be amended from time to time. B. Every Delivery Service shall obtain a Medical Cannabis Delivery Service License and business license from the city prior to any operation within the city. C. A Delivery Service shall comply with restrictions and conditions applicable to Delivery Services under validly issued Medical Cannabis Delivery Service Licenses. 5.91.030 Medical Cannabis Delivery Service License Exemption. A Qualified Patient or Caregiver engaged in the transportation of Medical Cannabis for his or her own personal use is exempt from the requirement of obtaining a Medical Cannabis Delivery Service License. 5.91.040 Fees and Term. A. Every Delivery Service shall first apply for a Medical Cannabis Delivery Service License, and pay a license application review and processing fee as established by resolution of the City Council from time to time. Upon approval of the Medical Cannabis Delivery Service License application, the Delivery Service shall pay to the city Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 11 of 19 a fee per Delivery Vehicle as established by resolution of the City Council from time to time, and the city shall issue a Delivery Vehicle authorization placard for each properly insured Delivery Vehicle. The annual Medical Cannabis Delivery Service License renewal fee shall be as established by resolution of the City Council from time to time. For purposes of completing a criminal background check, the city may adopt by resolution a procedure by which each applicant shall present to the city the prescribed amount set by the Department of Justice of the State of California for the processing of the applicant's fingerprints against any duly established fingerprint data base that may be used for purposes of lawfully conducting a background check. B. All licenses issued to Delivery Services shall be valid for a term of one calendar year. C. None of the fees established pursuant to this section may be prorated or refunded by the city to an applicant. 5.91.050 Application for License and Renewal. A. Every application for a Medical Cannabis Delivery Service License shall be signed by the applicant and shall contain: 1. Name and address of the applicant. If the applicant is an entity, such as a corporation, the application shall have names (such as trade names) and address(es) for the business and/or service of legal process and other notices to the entity. Any applicant and recipient of a Medical Cannabis Delivery Service License shall have an obligation to continuously provide updated and current names and address(es). 2. Kind and amount of public liability and property damage insurance covering each Delivery Vehicle. 3. Valid driver's license for any Delivery Driver and current registration for any and all Delivery Vehicle(s). 4. Whether the applicant has been cited or fined by any other city or a county for a violation of that city's or county's municipal code regulations concerning cannabis related uses or commercial cannabis activities. 5. All information required of applicants for a business license in the city. B. Whenever a Delivery Service submits an application for a Medical Cannabis Delivery Service License, or renewal thereof, the Delivery Service shall identify the number of Delivery Vehicles that will operate under a Medical Cannabis Delivery Service License. Each Delivery Vehicle shall have an authorization placard Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 12 of 19 that may be presented upon request whenever the Delivery Vehicle is providing services authorized pursuant to this chapter. No delivery of Medical Cannabis is authorized for any vehicle except for a Delivery Vehicle with an authorization placard issued pursuant to a valid Medical Cannabis Delivery Service License. 5.91.060 Investigation of Application; Decision and Notification. A. Each application shall be referred to the city manager or his or her designee or designated department in the city for review. B. The city manager, or his or her designee or designated department in the city, shall notify the applicant in writing of a decision on an application. A decision on an application (or renewal of a license) shall be to issue a valid Medical Cannabis Delivery Service License (or renewal thereof) or deny the application and not issue a license. A decision from the city manager, or his or her designee or designated department in the city, shall be made within 7 business days of receipt of a complete (or deemed complete) application; provided, however, that the inability of the city to decide an application within such timeframe shall not be grounds for any administrative or judicial action or liability whatsoever against the city. C. A decision for denial of an application shall include the reasons therefor, and shall advise the applicant of the right to appeal. No license shall be issued unless a successful appeal of the denial is made. D. If an application for a Medical Cannabis Delivery Service License (or renewal thereof) is approved, an authorization placard for each Delivery Vehicle allowed to operate under the Medical Cannabis Delivery Service License shall be issued, and each authorization placard shall be specific to the Delivery Vehicle by unique vehicle identification method, such as the valid registration for the Delivery Vehicle or other unique identifying method. 5.91.070 Appeal of Denial of Application. An appeal of a denial of an application for a Medical Cannabis Delivery Service License shall be processed as an appeal to the city manager pursuant to Chapter 2.08 of the code. An appeal of the decision of the city manager may be processed pursuant to Section 2.08.230 as an appeal to the city council. 5.91.080 Revocation and Suspension of License. A. The city may give notice to a Delivery Service of its intention to revoke a Medical Cannabis Delivery Service License. If deemed there is a risk to the general public's health, safety or welfare for the Delivery Service to continue operations pending a revocation hearing, the city may suspend immediately the license and all rights and privileges thereunder until the hearing on revocation. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quints Municipal Code Adopted: March 21, 2017 Page 13 of 19 B. The notice shall specify the reasons for the proposed revocation in sufficient detail so as to fully inform the Delivery Service of the reasons which have caused the notice to be given, and if the license has been suspended, the reasons for such suspension. C. The notice shall specify a time and place at which a revocation hearing will be held before the city manager. The hearing before the city manager shall be processed like an appeal to the city manager pursuant to Chapter 2.08 of the code. An appeal of the decision of the city manager may be processed pursuant to Section 2.08.230 as an appeal to the city council. 5.91.090 Grounds for Denial, Revocation or Suspension. A. A Medical Cannabis Delivery Service License (or renewal thereof) may be denied, and an existing license may be revoked or suspended, if a Delivery Driver, license holder, or applicant: 1. Has knowingly made a false statement in a material matter either in his or her application (or renewal of a license) or in any reports or other documents furnished by him or her to the city. 2. Does not maintain and operate a Delivery Vehicle and other equipment in the manner and in the condition required by law and applicable state and city regulations. 3. Is or has been required to register as a sex offender under the provisions of Section 290 of the California Penal Code. 4. Within 5 years immediately preceding the application submittal date (or renewal of a license), has been convicted of any offense relating to the unlawful use, sale, possession or transportation of narcotics or habit-forming drugs, other than Cannabis, prohibited by any federal or state law. 5. Within 5 years immediately preceding the application submittal date (or renewal of a license), has been convicted of any offense punishable as a felony or has been convicted of the crime of theft in any degree. 6. Within 3 years immediately preceding the application submittal date (or renewal of a license), has been under suspension, revocation or probation by the California Department of Motor Vehicles for a cause involving the safe operation of a motor vehicle, or has been convicted of driving under the influence involving bodily injury or reckless driving involving bodily injury. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quints Municipal Code Adopted: March 21, 2017 Page 14 of 19 7. Within 3 years immediately preceding the application submittal date (or renewal of a license), has been found responsible for a motor vehicle accident causing death or personal injury. 8. Within 1 year immediately preceding the application submittal date (or renewal of a license), has been involved in three or more motor vehicle accidents unless evidence shows that none of the accidents were caused by or the fault of the Delivery Driver, license holder, or applicant. 9. Has been convicted of any felony offense involving moral turpitude, "depraved conduct," or similar vile conduct that "shocks the public conscience." 10. Has failed to pay the required license fees. 11. Has violated any condition of a Medical Cannabis Delivery Service License issued to a Delivery Driver, license holder, or applicant. 12. Has violated any provision of this chapter, Chapter 5.90, or any other provisions of the city's code or any state law concerning the regulation of Cannabis. B. The grounds for denial identified above are based on the powers of the city under its general police power and obligation to protect and promote the public health, safety, and welfare. Nothing in this section shall preclude the police chief or other city or law enforcement official from providing a grounds for the denial of an application, or a revocation or suspension of an existing license, based on relevant facts and circumstances that affect the ability of Delivery Driver or Delivery Service to comply with this chapter. 5.91.100 Delivery Service Compliance. A. Each Delivery Service shall comply with all local and state laws. B. Each Delivery Service shall obtain a Medical Cannabis Delivery Service License from the city, and any other license required by the code for operation of the Delivery Service in the city, such as a business license. C. Each Delivery Service shall maintain a written record of every request for Medical Cannabis, including the name of the requestor, the address for the delivery, the quantity and type of Cannabis requested, the date and time the delivery request is received, the Delivery Vehicle that is assigned to make the delivery, and the Delivery Driver who is assigned to make the delivery. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quints Municipal Code Adopted: March 21, 2017 Page 15 of 19 D. Each Delivery Service shall assure that every Delivery Driver shall have a copy of the record of the delivery request during the delivery of any Medical Cannabis in the city. E. Whenever a Delivery Vehicle is making a delivery pursuant to this chapter, no Delivery Service shall permit any person other than a Delivery Driver, licensed in accordance with this chapter, to operate its Delivery Vehicles in the city. F. No Delivery Service shall deliver or authorize the delivery of any Cannabis other than Medical Cannabis to a Qualified Patient or Caregiver. G. Whenever a Delivery Vehicle is making a delivery pursuant to this chapter, the Delivery Service shall have and may present upon request a current and valid recommendation from a doctor licensed by the state to issue a recommendation for use of Medical Cannabis to a Qualified Patient in the city. H. Deliveries of Medical Cannabis shall be only to private residences and Residential Care Facilities for the Elderly (RCFEs) operating pursuant to Chapter 3.2 (commencing with Section 1569) of Division 2 of the California Health and Safety Code (as may be amended from time to time) and only if the RCFE authorizes delivery of Medical Cannabis to its facility. I. A Delivery Driver may possess no more than 8 ounces per patient of dried Cannabis, and no more than 50 packages of non -flower processed Medical Cannabis. All Medical Cannabis must be clearly packaged and labeled. J. Delivery Drivers shall be at least 21 years of age and shall be employees of the Delivery Service or an independent contractor under binding agreement with the Delivery Service as a Delivery Driver. K. A list of the names and contact information of each Delivery Driver shall be maintained by the Delivery Service, and the Delivery Service shall immediately provide the names and contact information of Delivery Drivers to the city upon request. L. Delivery Drivers shall not have more than $1,000 cash on their person or in a Delivery Vehicle at any one time. M. Medical Cannabis shall be stored in a secured case in the trunk portion of a Delivery Vehicle. No Medical Cannabis is permitted within any other portion of a Delivery Vehicle. N. All Medical Cannabis shall be tested for potency, pesticides, and micro- biological ingredients to ensure products are safe for use by Qualified Patients. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 16 of 19 0. Testing information and credentials for Medical Cannabis shall be readily available for inspection by code enforcement and police officers, and delivered within 24 hours if not immediately available. P. Each Delivery Service shall maintain, for a minimum of 3 years, a written accounting or ledger of all cash, receipts, credit card transactions, and reimbursements, (including any in -kind contributions) as well as records of all operational expenditures and costs incurred by the Delivery Service in accordance with generally accepted accounting practices and standards typically applicable to business records. Q. Each Delivery Service shall pay any applicable state and local taxes for the delivery of Medical Cannabis within the city. 5.91.110 Insurance and Hold Harmless Requirements. A. Any holder of a Medical Cannabis Delivery Service License shall hold harmless and protect the city and its officials, officers, employees and agents, from any loss or damage that allegedly arises under or may result to any person or property from any activity authorized under this chapter, including the operation of a Delivery Vehicle used by a Delivery Service. As a condition of approval for a license issued under this chapter, the City may require automobile insurance or other policies of insurance as would be reasonable to request of a Delivery Service operating pursuant to this chapter. B. If insurance is a condition of approval, no Medical Cannabis Delivery Service License shall be issued until the applicant first files with the city a certificate of insurance, on a form acceptable by the city. The certificate shall provide evidence of insurance in amounts and with conditions acceptable to the city and shall be approved by the city manager or his or her authorized designee. C. Each Delivery Service shall, and by acceptance of the license, does agree to indemnify, defend, and hold harmless the city, its officers, agents and employees from any and all damages, claims, liabilities, costs (including attorney's fees), suits or other expenses resulting from and arising out of the Delivery Service's operations. 5.91.120 Delivery Driver Requirements. A. Every Deliver Driver shall have a valid California Driver's License when any delivery of Medical Cannabis is made. B. Every Delivery Driver shall have any applicable state license required for state authorization to operate the Delivery Service of Medical Cannabis. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 17 of 19 5.91.130 Fee Authorization. The city may adopt by resolution fees, service charges, or assessments in amounts sufficient to pay for the costs of carrying out the provisions of this chapter. 5.91.140 Public Nuisance. Any use or condition caused, or permitted to exist, in violation of any provision of this chapter shall be, and is hereby declared to be, a public nuisance and may be summarily abated by the city pursuant to Section 731 of the California Code of Civil Procedure or any other remedy at law. 5.91.150 Violations. A. In addition to any other enforcement permitted by the La Quinta Municipal Code or state law, the city attorney may bring a civil action for injunctive relief and civil penalties against any person who violates any provision of this chapter. In any civil action that is brought pursuant to this chapter, a court of competent jurisdiction may award civil penalties and costs to the prevailing party. B. In addition to any other enforcement permitted by the La Quinta Municipal Code or state law, a violation or violations under this chapter may result in the following fines: 1. A fine of one thousand dollars for a first violation; 2. A fine of two thousand dollars for a second violation of the same ordinance or permit within one year from the date of the first violation; and 3. A fine of three thousand dollars for each additional violation of the same ordinance or permit within one year from the date of the first violation. C. In addition to any other enforcement permitted by the La Quinta Municipal Code or state law, the City Manager or his/her designee may summarily deny, suspend, or revoke any current or pending Medical Cannabis Delivery Service License and/or business license pursuant to the provisions set forth in Section 2.04.100 (Appeals to Council) of Chapter 2.04, or other applicable procedural provisions in the municipal code, for any violation of this chapter. In addition to any other penalty imposed as part of a suspension or revocation of any license, a suspension or revocation of a Medical Cannabis Delivery Service License and/or business license pursuant to this section, after notice and public hearing and final determination for suspension or revocation, may result in the applicant, Delivery Driver, Delivery Service, and/or Delivery Vehicle operating under the suspended or Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 18 of 19 revoked permit, (1) being ineligible to deliver Medical Cannabis in the city for up to 12 months from the decision to suspend or revoke a license, and (2) being ineligible to apply or re -apply for a Medical Cannabis Delivery Service License or business license related thereto for at least one year if the prior license was revoked. 5.91.160 Provisions in Chapter Cumulative. The prohibitions and provisions in this chapter are cumulative to any and all other prohibitions and regulations in the La Quinta Municipal Code concerning Cannabis, Medical Cannabis, and cannabis in general, and nothing in this chapter supersedes or shall be construed to conflict with any other prohibitions and regulations in the La Quinta Municipal Code, including Section 9.20.050, as may be amended from time to time. Ordinance No. 555 Amending Sections of Chapter 5.90 and Adding Chapter 5.91 to the La Quinta Municipal Code Adopted: March 21, 2017 Page 19 of 19 STATE OF CALIFORNIA j COUNTY OF RIVERSIDE j ss. CITY OF LA QUINTA j I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 555 which was introduced at a regular meeting on the 7th day of March, 2017, and was adopted at a regular meeting held on the 21st day of March, 2017, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution No. 2014-013. SUSAN MAYSELS, City Clerk City of La Quinta, California DECLARATION OF POSTING I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on March 23, 2017 pursuant to Council Resolution. OL4 SUSAN MAYSELS, City dork City of La Quinta, California