HomeMy WebLinkAboutOrdinance 612 - CannabisORDINANCE NO. 612
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MORRO
BAY, CALIFORNIA, ADDING CHAPTER 5.50 (COMMERCIAL
CANNABIS OPERATIONS REGULATORY PROGRAM) TO TITLE 5 OF
THE MORRO BAY MUNICIPAL CODE TO PERMIT CERTAIN
MEDICAL COMMERCIAL CANNABIS USES (RETAIL SALES,
DELIVERIES AND (WHOLESALE) DISTRIBUTOR), TO PROHIBIT
ALL OTHER MEDICAL COMMERCIAL CANNABIS USES, AND TO
PROHIBIT ALL ADULT -USE (RECREATIONAL) COMMERCIAL
CANNABIS USES; REPEALING CHAPTER 9.06 OF TITLE 9 OF THE
MORRO BAY MUNICIPAL CODE AND REPLACING IT WITH A NEW
CHAPTER 9.06 (PERSONAL CANNABIS CULTIVATION) TO
REGULATE PERSONAL CANNABIS CULTIVATION; AND,
AMENDING CHAPTER 9.24 (SECONDHAND SMOKING
REGULATIONS) OF TITLE 9 OF THE MORRO BAY MUNICIPAL
CODE TO STRENGTHEN REGULATION OF SECONDHAND SMOKE
AND EXPRESSLY INCLUDE CANNABIS AND ELECTRONIC
SMOKING DEVICES
WHEREAS, in 1996 California voters approved Proposition 215, the Compassionate
Use Act ("CUA"), codified as Section 11362.5 of the Health and Safety Code, to exempt certain
patients and their primary caregivers from criminal liability under state law for the possession
and cultivation of cannabis for medical purposes; and
WHEREAS, in 2003 the California legislature enacted Senate Bill 420, the Medical
Marijuana Program Act ("MMPA"), codified as Sections 11362.7, et seq., of the Health & Safety
Code, and as later amended, to clarify the scope of the Compassionate Use Act of 1996 relating
to the possession and cultivation of cannabis for medical purpose, and to authorize local
governing bodies to adopt and enforce laws consistent with its provisions; and
WHEREAS, in ®ctober 2015, the State of California adopted AB 266, AB 243, and SB
643, collectively referred to as the Medical Cannabis Regulation and Safety Act ("MCRSA"),
which established a comprehensive regulatory and licensing scheme for commercial medical
cannabis operations; and
WHEREAS, at the November 8, 2016 general election, the Control, Regulate and Tax
Adult Use of Marijuana Act ("AUMA") was approved by California voters as Proposition 64,
which established a comprehensive regulatory and licensing scheme for commercial recreational
(adult use) cannabis operations, and which also legalized limited personal recreational cannabis
use, possession, and cultivation; and
WHEREAS, on June 27, 2017 Governor Brown signed Senate Bill 94, the Medicinal and
Adult Use Cannabis Regulation and Safety Act ("MAUCRSA"), which merged the regulatory
regimes of MCRSA and AUMA; and
WHEREAS, the MAUCRSA provides that the State of California will begin issuing
licenses in 2018 for both medical and recreational cannabis businesses in 20 different categories,
which are found in Seetinn 26050 of the RuvinPCC & PrnfPCCinnC Cnde and VThieh rat. r"nrlav
include cannabis cultivation, manufacturer, testing, retailer, distributor, and microbusiness; andvJ
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Ordinance No. 612
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WHEREAS, the MAUCRSA, Section 26200(a)(1) of the Business & Professions Code,
provides that local jurisdictions may completely prohibit the establishment or operation of any or
all of the 20 different medical and recreational business operations to be licensed by the state
under Section 26050 of the Business & Professions Code; and
WHEREAS, the MAUCRSA, Section 26055(d) of the Business &Professions Code,
provides that a state commercial cannabis license may not be issued to an applicant whose
operations would violate the provisions of any local ordinance or regulation; and
WHEREAS, the MAUCRSA, Section 26200(a)(1) of the Business &Professions Code,
provides that local jurisdictions may adopt and enforce local ordinances to regulate any or all of
the 20 different medical and recreational business operations to be licensed by the state under
Section 26050 of the Business & Professions Code, including, but not limited to, local zoning
and land use requirements; and
WHEREAS, the MAUCRSA, Section 26201 of the Business &Professions Code,
provides that any standards, requirements, and regulations regarding health and safety,
environmental protection, testing, security, food safety, and worker protections established by
the state for the 20 different medical and recreational business operations to be licensed by the
state under Business & Professions Code § 26050, shall be the minimum standards, and a local
jurisdiction may establish additional standards, requirements, and regulations; and
WHEREAS, the AUMA, Health &Safety Code § 11362.1(a)(3), makes it lawful for any
person 21 years of age or older to "[p]ossess, plant, cultivate, harvest, dry, or process not more
than six living cannabis plants and possess the cannabis produced by the plants"; and
WHEREAS, the AUMA, Health &Safety Code § 11362.2(b)(3), explicitly allows a city
to "completely prohibit persons from engaging in [the personal cultivation of cannabis] outdoors
upon the grounds of a private residence"; and
WHEREAS, the AUMA, Health &Safety Code § 11362.2(b), explicitly allows a city to
"enact and enforce reasonable regulations to reasonably regulate" the cultivation of cannabis
permitted under Health & Safety Code § 11362.1(a)(3), so long as the city does not completely
prohibit the cultivation of up to six plants "inside a private residence, or inside an accessory
structure to a private residence located upon the grounds of a private residence that is fully
enclosed and secure"; and
WHEREAS, the AUMA, Health &Safety Code § 11362.2(a)(2), further restricts such
personal cannabis cultivation so that "[t]he living plants and any marijuana produced by the
plants in excess of 28.5 grams are kept within the person's private residence, or upon the grounds
of that private residence, are in a locked space, and are not visible by normal unaided vision from
a public place"; and
WHEREAS, several California cities have reported negative impacts of cannabis
cultivation and related activities, including but not limited to offensive odors, criminal activity,
such as trespassing, theft, violent robberies and robbery attempts, and the illegal sale and
distribution of cannabis), and public health and safety concerns (such as fire hazards and
problems associated with mold, fungus, and pests); and
�VYl1LRLAS, ca1111ab1J plants, a they begin to flower alld Lb a period of tvJv liloilths yr
more, produce a strong odor, offensive to many people, and detectable far beyond property
boundaries it grown outdoors or if grown indoors without proper ventilation, odor control, and
other regulations; and
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WHEREAS, due to the value of cannabis plants and their strong smell (which alerts
others to their location), cannabis cultivation has been linked to break-ins, robbery, armed
robbery, theft and attendant violence and injury, creating an increased risk to public safety; and
WHEREAS, the indoor cultivation of cannabis has potential adverse effects on the
structural integrity of the buildings in which cannabis is cultivated, and the use of high wattage
grow lights and excessive use of electricity increases the risk of fire, which presents a clear and
present danger to the buildings, its occupants, and neighboring buildings and residents; and
WHEREAS, unregulated indoor cultivation of cannabis can be harmful to the public
health, safety and welfare, because electrical modifications risk fires, poor irrigation can cause
mold, overloaded circuits can leave entire neighborhoods in the dark, plant chemicals can cause
illness and can contaminate soil and water, improper carbon dioxide mixed with insufficient
ventilation can cause injury or death, and structural changes put first responders in danger if they
rush into the unknown; and
WHEREAS, the Attorney General's August 2008 Guidelines for the Security and Diversion of of Marijuana Grown for Medical Use recognize that the cultivation or other
concentration of cannabis in any location or premises without adequate security increases the
risk that nearby homes or businesses may be negatively impacted by nuisance activity such as
loitering and/or crime; and
WHEREAS, unregulated cannabis cultivation is likely to generate these negative effects
on the public health, safety, and welfare in the city, based on the experiences of other cities; and
WHEREAS, absent clear regulation, cannabis cultivation in the city poses a potential
threat to the public peace, health, and safety, and, unless the city takes action to regulate it, the
secondary impacts described above are likely to occur; and
WHEREAS, the City has a compelling interest in protecting the public health, safety,
and welfare of its residents, visitors, and businesses, and in preserving the peace and quiet of the
neighborhoods within the city, by regulating personal cannabis cultivation; and
WHEREAS, the AUMA, Health & Safety Code § 11362.3(a)(1-2), provides that the
AUMA shall not be interpreted to permit any person to smoke cannabis or cannabis products in
public places or in any place where smoking tobacco is prohibited; and
WHEREAS, secondhand smoke can result from many types of smoking, including the
smoking of tobacco, the smoking of cannabis, and the use of electronic smoking devices (also
known as "vaping"); and
WHEREAS, the federal Environmental Protection Agency has found secondhand smoke
to be a risk to public health, and has classified secondhand smoke as a group A carcinogen, the
most dangerous class of carcinogen; and
WHEREAS, the California Air Resources Board has determined that secondhand smoke
is a toxic air contaminant, finding that exposure to second-hand smoke has serious health effects
including asthma in children and adults; lung, sinus and breast cancer; heart disease; low birth -
weight babies; Sudden Infant Death Syndrome (SIDS); increased respiratory infections in
children; and death; and
WHEREAS, the U.S. Department of Health and Human Services, Centers for Disease
Control and Prevention, has concluded that exposure to secondhand smoke is a leading cause of
preventable death in the United States; and
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WHEREAS, the U.S. Surgeon General and the California Environmental Protection
Agency have repeatedly identified secondhand smoke as a health hazard; and
WHEREAS, exposure to secondhand smoke anywhere is injurious to health, and
exposure to secondhand smoke from an adjacent or nearby property can occur at sustained and
significant levels, including but not limited to for reasons of the volume of smoking, the
proximity of smoking, the number of smokers, or the direction and amount of wind; and
WHEREAS, non-consensual exposure to the strong odor of secondhand smoke is
offensive to many people, an obstruction to the free use of property, and interferes with the
comfortable enjoyment of life and property; and
WHEREAS, non-consensual exposure anywhere to secondhand smoke constitutes a
public nuisance because of interference with the health, safety and welfare of members of the
public; and
WHEREAS, to provide for the public health, safety and welfare of the residents and
visitors of the City of Morro Bay, the City desires to protect the public from exposure to
secondhand smoke where they live, work and play; and
WHEREAS, the City of Morro Bay ("City") previously adopted Chapter 9.06 ("Medical
Cannabis Regulations") in Title 9 ("Public Peace, Morals and Welfare") to prohibit and regulate
specific cannabis commercial and individual cannabis uses in the City;
WHEREAS, pursuant to the above -described express statutory authority and its police
power, the City now desires to repeal existing Chapter 9.06, to be replaced with a new Chapter
9.06 ("Personal Cannabis Cultivation") in Title 9, so as to permit and reasonably regulate
personal cultivation of up to six cannabis plants at a private residence, so as to protect the public
health, safety and welfare;
WHEREAS, pursuant to the above -described express statutory authority and its police
power, the City now desires to add a new Chapter 5.50 (Commercial Cannabis Operations
Regulatory Program) to Title 5 (permit certain commercial medical cannabis uses (retail sales,
deliveries and (wholesale) distributor), while also prohibiting both all other commercial medical
cannabis uses as well as all commercial adult -use (recreational) cannabis uses; and
WHEREAS, the City previously adopted Chapter 9.24 ("Secondhand Smoking
Regulations") in Title 9 ("Public Peace, Morals and Welfare") to protect the public health, safety
and general welfare by prohibiting smoking in certain public places under circumstances where
other persons will be exposed to secondhand smoke; and
WHEREAS, pursuant to its police power, the City now desire to amend Chapter 9.24
("Secondhand Smoking Regulations") in Title 9 ("Public Peace, Morals and Welfare") to
expressly include cannabis smoking and the use of electronic smoking devices, to strengthen the
regulation of secondhand smoke, and to increase the penalties for violation of the regulation of
secondhand smoke; and
WHEREAS, this Ordinance is enacted, consistent with the Compassionate Use Act of
1996, the Medical Marijuana Program Act of 2003, the Medical Cannabis Regulation and Safety
Act of 20 i 5, the Ad'u'lt rJse of 1�V Act � 2I161 7 +t� Medicinal a A a i+ T Tno
sari aria of viv anu u e i ledicinal aiiu c-Vuuitl va%, vi
Cannabis Regulation and Safety Act of 2017, to protect, promote and maintain the public health,
safety, and welfare of City residents and visitors in relation to cannabis related uses and
activities; and
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WHEREAS, pursuant to the above -described express statutory authority and the City's
police power, the City has the authority to prohibit, permit and regulate any and all commercial
cannabis activities (whether not -for -profit or for -profit) that may otherwise be permitted by the
State of California under the MCRSA, the AUMA, and the MAUCRSA; and
WHEREAS, the City finds that this ordinance is not subject to the California
Environmental Quality Act ("CEQA") pursuant to both the exemption provided by Section
26055(h) of the Business and Professions Code as well as Sections 15060(c)(3) and 15061(b)(3)
of the CEQA Guidelines; and
WHEREAS, nothing in this Ordinance shall be construed to allow any person to engage
in conduct that endangers others or causes a public nuisance;
ALIFORNIA FINDSORDAINS
SECTION 1. THE CITY COUNCIL OF THE CITY OF MORRO BAY HEREBY
MAKES THE FOLLOWING FINDINGS.
A. The recitals set forth above are all true and correct and are incorporated herein.
B. The prohibitions on, and regulations of, cannabis activities established by this Ordinance
are necessary to protect the public health, safety and welfare, and are enacted pursuant to
the authority granted to the City by state law.
C. The regulations of personal cultivation of cannabis established by this Ordinance are
reasonable and necessary to protect the public health, safety and welfare, and are enacted
pursuant to the authority granted to the City by state law.
D. The regulations of secondhand smoke established by this Ordinance are reasonable and
necessary to protect the public health, safety and welfare, and are enacted pursuant to the
authority granted to the City by state law.
SECTION 2. CHAPTER 9.06 OF TITLE 9 OF THE MORRO BAY
HEREBY REPEALED IN ITS ENTIRETY AND THE FOLLOWING
9.06, (PERSONAL CANNABIS CULTIVATION) IS HEREBY ADDED
THE MORRO BAY CITY CODE AS FOLLOWS.
"Chapter 9.06 -PERSONAL CANNABIS CULTIVATION.
Sec. 9.06.010 -Purpose and intent.
Sec. 9.06.020 -Definitions.
Sec. 9.06.030 -Personal cannabis cultivation.
Sec. 9.06.040 -Personal cannabis cultivation permit.
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Sec. 9.06.010 -Purpose and intent.
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ITY CODE IS
C
NEW CHAPTER
TO TITLE 9 OF
The purpose and intent of this chapter is to establish reasonable regulations, consistent with the
meaning of Section 11362.2 of the Health & Safety Code, and as may be amended, for the
cultivation of up to six (6) cannabis plants at a private residence.
Sec. 9.06.020 -Definons.
As used in this chapter, the following words and phrases shall have the following meanings:
A. "Accessory structure" means a subordinate building located on the same lot as a private
residence, the use of which is customarily part of, incidental and secondary to that of the
private residence, and which does not change the character of the residential use of the
private residence.
B. "Applicant" means a person who files an application for a permit under this chapter.
C. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof, the resin, whether crude 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 cannabis. `Cannabis' does
not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or
cake, or the sterilized seed of the plant which is incapable of germination.
D. "City Manager" means the City Manager of the City of Morro Bay, and includes his/her
designees.
E. "Cultivation" means any activity involving- the planting, growing, harvesting, drying,
curing, grading, or trimming of one or more cannabis plants or any part thereof.
F. "Cultivation site" means the real property on which cannabis cultivation occurs.
G. "Director" means the Director of Community Development for the City of Morro Bay,
and includes his/her designees.
H. "Marijuana" has the same definition as provided for "cannabis" in this chapter.
I. "Permit" means a personal cannabis cultivation permit issued pursuant to this chapter.
J. "Person" means any individual, firm, co -partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit.
K. "Private residence" has the same meaning as the term is defined in Section 11362.2(b)(5)
of the Health. & Safety Code, and as may be amended, which provides that private
residence "means a house, an apartment unit, a mobile home, or other similar dwelling."
Sec. 9.06.030 -Personal cannabis cultivation.
A. Protion. Cannabis cultivation is prohibited in all zones of the city. No person shall
engage in the cultivation of cannabis in the city for any purpose.
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B. Limited Exemption. The prohibition on cannabis cultivation in above subsection (A) does
not apply to the indoor cultivation of cannabis, and the outdoor cultivation of up to two
(2) plants, at a private residence, conducted both pursuant to a valid and current permit as
provided for in this chapter, as well as with complete adherence to the following
regulations:
1. Six plants total. Total cultivation is limited to no more than six (6) living cannabis
plants at any one time.
2. Two plants outdoors. Two (2) of the six (6) living plants that may be cultivated, at
any one time, may be cultivated outdoors, if the outdoor cultivation is no less than
ten (10) feet from the property line of the cultivation site.
3. Indoor cultivation. Indoor cultivation shall occur entirely within a private
residence or within an accessory structure to a private residence located upon the
grounds of a private residence that is fully enclosed and secure.
4. Locked space. The six (6) living plants and any cannabis produced by the plants
in excess of 28.5 grams shall be kept within a locked space, inaccessible to minors
and trespassers, located either within the private residence or upon the grounds of
the private residence. A locked space for purposes of outdoor cultivation means a
locked and secure enclosure completely surrounding the cultivation site which
renders the cultivation site inaccessible to minors and trespassers (e.g., a secured
and locked garden fence, or a secured and locked backyard fence).
5. Visibility. The six (6) living plants (whether grown indoors or outdoors) and any
cannabis produced by the plants in excess of 28.5 grams shall not be visible from
any public right of way, or in any manner be visible by normal unaided vision
from a place regularly accessible to the general public.
6. Odor.
a. The odor resulting from all cannabis cultivation shall not be detectable by
human senses from any neighboring property or public right of way.
b. As necessary (which final determination shall be made by the Director), to
ensure that no odor resulting from cannabis cultivation shall be detectable
by human senses from any neighboring property or public right of way, all
cultivation will occur indoors and/or a cannabis cultivation site shall
install and continuously operate a functioning ventilation and filtration
system which complies with all applicable building code regulations,
including obtaining all required permits and approvals.
7. Nuisance Activity. Cultivation shall not result in a nuisance or adversely affect
the health, welfare, or safety of the resident or nearby residents by creating dust,
glare, heat, noise, noxious gases, odors, smoke, traffic, vibration, or other impacts,
or be hazardous due to use or storage of materials, processes, products or waste.
8. Fire Extinguisher. A working portable fire extinguisher, which complies with the
regulations and standards adopted by the state fire marshal and applicable law,
shall be Kept In die same room as indoor cannabis cultivation.
9. Electricity.
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a. The collective draw from all electrical appliances at the cannabis
cultivation site shall not exceed the maximum rating of the approved
electrical panel for the private residence where the cannabis is being
cultivated.
b. The maximum rating shall be as established in the manufacturer
specifications for the approved electrical panel.
10. Lighting. Any lighting fixture or combination of lighting fixtures used for
cannabis cultivation shall:
a. not exceed the rated wattage and capacity of the circuit breaker; and
b. shall be shielded so as to completely confine light and glare to the interior
of the private residence or fully enclosed accessory structure.
11. Private Residence. Any private residence used for cultivation shall:
a. include a fully functional and usable kitchen, as well as bathroom and
bedroom areas, for use by the permit holder; and
b. shall not be used primarily or exclusively for calmabis cultivation.
12. Garage. Cultivation shall not displace required parking in a garage.
C. Additional Regulations. Further rules, regulations, procedures, and standards for the
administration and implementation of this chapter may be adopted from time to time
either by resolution or ordinance of the City Council, or by the Director (upon
authorization by resolution of the City Council).
Sec. 9.06.040 -Personal cannabis cultivation permit.
A. Permit Application. An applicant shall submit an application to the Director, in a form
provided by the city, and the application shall contain the following information:
1. The address of the property where cannabis cultivation is to occur.
2. The name of the applicant and a statement as to whether the applicant is an owner
or tenant of the property where cultivation is to occur.
3. If the applicant is not the owner of the property, property owner
acknowledgement, in a form provided by the city, that the property owner
consents to the cultivation of cannabis at the property.
4. Applicant certification, through a form provided by the city, that the applicant has
inspected the proposed cultivation site, and the proposed cultivation site meets the
requirements of this chapter, state law, and any other applicable chapters of the
Morro Bay City Code, including but not limited to health, safety and welfare
requirements.
5. A property site plan and a diagram of the floor plan of the residence, the fully
enciosed and secure accessory structure, andior the outdoor area to be used far
cultivation at the cultivation site, dimensioned hand sketch acceptable.
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6. An itemized list of measures taken to comply with the provisions of this chapter,
including identification and description of lighting and equipment to be used for
the cannabis cultivation at the residence.
7. Any other information the Director deems necessary to efficiently administer
applications and permits so as to further the purposes of this chapter.
B. Action on Applications.
1. Upon receipt of a completed application and payment of the application and
permit fees, the Director shall review the information contained in the application
to determine whether the applicant shall be issued the permit.
2. If the Director determines that the applicant has completed the application
improperly, the Director shall notify the applicant within 30 days of receipt of the
application. Applicant will then have 30 days to complete the application. If the
application is not submitted within that time frame, or is resubmitted incomplete,
the Director shall deem the application abandoned, and the applicant may then
resubmit a new application for review.
3. Within 60 days of receipt of a completed application, the Director shall complete
the review, approve or deny the application, and so notify the applicant by United
States mail, first class postage prepaid, addressed to the applicant at the address
stated in the application.
4. The Director shall grant the application upon affirmative findings for all of the
following requirements:
a. The applicant, and the cannabis cultivation site, are both in compliance
with state law governing cannabis cultivation; and
b. The applicant, and the cannabis cultivation site, are both in compliance
with all of the provisions %J this chapter, including any regulations
promulgated under this chapter; and
c. The cannabis cultivation site complies with the building code, fire code,
plumbing code, and any other such applicable code adopted by the city.
the Director's sole discretion, the time limits in this Section 9.06.040(B) may
be extended upon written notification from the Director to the applicant.
C. Permit not transferable. A permit issued pursuant to this chapter is non -transferable and is
specific to both the permit holder and the private residence for which it was issued.
D. Permit revocation. Permits issued under this section may be revoked by the Director upon
making any of the following findings:
1. The permit was issued in error or the application contained materially incorrect or
false information.
2. The cannabis cultivated at the cultivation site has been sold or used for any
commercial use, or any other use or activity prohibited by city or state law,
including but not limited to Sections 1136201, 11362.2, and 11352.3 of the Health
& Safety Code, and as they may be amended.
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3. The cannabis cultivation site has become a public nuisance or has been operated
in a manner constituting a public nuisance.
4. The cannabis cultivation is not in compliance with the provisions of this chapter.
E. Appeals. Any decision regarding an application for, or the revocation of, a personal
cannabis cultivation permit may be appealed to the City Manager by an applicant or
(former) permit holder as follows:
1. Appellant must file a written appeal with the Morro Bay City Clerk within 10
calendar days of the decision. The written appeal shall specify the person making
the appeal, identify the decision appealed from, state the reasons for the appeal,
and include any evidence in support of the appeal.
2. Notice of the time and place of an appeal hearing shall be provided to the
appellant within 30 days of receipt of the written appeal by the Morro Bay City
Clerk.
3. The appealhearing shall be held within 60 days of the filing of the written appeal
with the Morro Bay City Clerk, unless the 60-day time limit is waived by the
appellant, or unless the City Manager continues the appeal hearing date for good
cause and upon written notification to the appellant.
4. The. City Manager shall review the facts of the matter, written documents
submitted for review, the basis for making the decision which is under appeal, and
then determine whether the Director's decision should be reversed or affirmed.
The determination made shall be in writing, shall set forth the reasons for the
determination, and shall be final.
5. The provisions of Sections 1094.5 and 1094.E of the Code of Civil Procedure set
forth the procedure for judicial review of any final determination.
F. Fees. An application fee set by resolution of the City Council may be required for formal
processing of every application and appeal made under this chapter. The City Council is
authorized to pass resolutions to recover any and all fees and costs incurred by the
administration and implementation of this chapter through an appropriate fee recovery
mechanism to be imposed upon indoor cannabis cultivators and their operations.
Sec. 9.06.050 -Violations and penalties; public nuisance.
A. Any violation of the provisions of this chapter is punishable as a misdemeanor or an
infraction, at the discretion of the city prosecutor, pursuant to Chapter 1.1E of the Morro
Bay City Code, except for as preempted by state law; and, any violation of the provisions
of this chapter is subject to administrative citation, at the discretion of the City, pursuant
to Chapter 1.03 of the Morro Bay City Code.
B. Public nuisance abatement.
1. Cannabis cultivation that is conducted in violation of any provisions of this
chapter is deemed a public nuisance, which may be abated or enjoined from
further operation, in accordance with the procedures set forth in Chapter 8.14 of
the Morro Bay City Code.
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2. All costs to abate such public nuisance, including attorneys' fees and court costs,
shall be paid by the person causing the nuisance and the property owner where the
nuisance is occurring.
C. The remedies described in this section are not mutually exclusive. Pursuit of any one
remedy shall not preclude city from availing itself of any or all available administrative,
civil, or criminal remedies, at law or equity.
D. Any violation of the provisions of this chapter shall constitute a separate offense for each
and every day during which such violation is committed or continued."
REGULATORYPROGRAM) i' 11 1 TO TITLE 5 OF THE MORRO BAY
WUNICIPAL CODE AS FOLLOWS.
Sec. 5.50.010 -Purpose and intent.
Sec. 5.50.020 -Commercial cannabis operations prohibited without City permit.
Sec. 5.50.030 -Definitions.
Sec. 5.50.040 -Prohibited commercial cannabis operations.
Sec. 5.50.050 -Permitted commercial cannabis operations.
Sec. 5.50.0Jr: 0 -Commercial cannabis operation permit.
Sec. 5.50.070 -Applications for commercial cannabis operation permit.
Sec. 5.50.080 -Compliance review of commercial cannabis operation permit application.
Sec. 5.50.090 -Issuance of commercial cannabis operation permit.
Sec. 5.50.100 -Renewal of commercial cannabis operation permit.
Sec. 5.50.110 -General operating standards and restrictions.
Sec. 5.50.120 -Retail (medical) operating standards and restrictions.
Sec. 5.50.130 -Wholesale distribution (medical) operating standards and restrictions.
Sec. 5.50.140 -Delivery (medical) operating standards and restrictions.
Sec. 5.50.150 -Administration.
Sec. 5.50.160 -Fees.
Sec. 5.50.170 -Suspension and revocation.
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Sec. 5.50.180 - Violations and penalties; public nuisance
Sec. 5.50.190 - Service of notices.
Sec. 5.50.200 - Prohibitions.
Sec. 5.50.210 -Nonconforming use.
Sec. 5.50.220 - Severability.
Sec. 5.50.010 -Purpose and intent.
A. The purpose of this chapter is to establish a comprehensive set of regulations with an
attendant regulatory permit applicable to the operation of certain types of commercial
cannabis operations, while simultaneously establishing an express prohibition on certain
other types of commercial cannabis operations.
B. The regulations for, and prohibitions on, specific types of commercial cannabis
operations are enacted to preserve the public health, safety, and welfare of the residents
and visitors of the City of Morro Bay, consistent with California's Compassionate Use
Act of 1996, California's Medical Marijuana Program Act of 2003, the Adult Use of
Marijuana Act of 2016 (AUMA) (Proposition 64), the Medicinal and Adult -Use Cannabis
Regulation and Safety Act of 2017 (MAUCRSA) and all applicable state laws governing
commercial cannabis activities.
C. The issuance of a Commercial Cannabis Operation Permit shall constitute a revocable
privilege and shall not create or establish any vested rights for the development or use of
a property.
D. This chapter and its regulations shall be known as the "Commercial Cannabis Operations
Regulatory Program."
Sec. 5.50.020 -Commercial cannabis operation prohibited without City permit.
It shall be unlawful to own, establish, operate, use, or permit the establishment or activity of a
commercial cannabis operation, or to participate in commercial cannabis operations as an
employee, contractor, agent, volunteer, or in any manner or capacity, other than as provided in
this chapter and pursuant to both a current and valid City of Morro Bay Commercial Cannabis
Operation Permit, as well as the equivalent state license for such commercial cannabis operation
as provided for by Section 26050 of the Business & Professions Code, and as amended. The
prohibition contained in this section shall include renting, leasing, or otherwise permitting a
commercial cannabis operation to occupy or use a location, vehicle, or other mode of
transportation.
Sec. 5.50.030 -Definitions.
As used in this chapter, the following words and phrases shall have the following meanings:
A, Adult ice (i_e_recreational or 11O11-medical 1 refers t0 activity involving cannabis or
cannabis products, which is restricted to adults 21 years of age and older and who do not
possess a physician's recommendation, in contrast to an activity involving medical
cannabis or medical cannabis products.
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B. "Applicant" means a person who files an application for a permit under this chapter.
C. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof, the resin, whether crude 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 cannabis. `Cannabis' does
not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or
cake, or the sterilized seed of the plant which is incapable of germination.
D. "Cannabis concentrate" means cannabis that has undergone a process to concentrate one
or more active cannabinoids, thereby increasing the product's potency. Resin from
granular trichomes from a cannabis plant is a concentrate for purposes of this division. A
cannabis concentrate is not considered food, as defined by Section 109935 of the Health
and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
E. "Cannabis Permit Committee" is composed of the Fire Chief, Police Chief, Finance
Director, City Attorney, and/or their designees.
F. "Cannabis products" means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including but not limited to,
concentrated cannabis, or an edible or topical product containing cannabis or
concentrated cannabis and other ingredients.
G. "City Attorney" means the City of Morro Bay City Attorney, and includes his/her
designee(s).
H. "City Manager" means the City of Morro Bay City Manager, and includes his/her
designee(s).
I. "Commercial cannabis operation" includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging, labeling, transportation,
delivery, or sale (including retail and wholesale) of cannabis and cannabis products;
except, as applicable, as set forth in Chapter 9.06 ("Personal Cultivation of Cannabis") of
this Code or as preempted by state law.
J. "Commercial Cannabis Operation Permit" shall mean a City of Morro Bay permit issued
pursuant to the procedures provided for in this chapter and which shall allow the permit
holder to operate a specific type of commercial cannabis operation in the City of Morro
Bay subject to the requirements of this chapter, state law, and the specific permit.
K. "Cultivation" means any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of cannabis.
L. "Day care center" means, as the term is understood by Section 26001(0) of the Business
and Profession Code, and as may be amended, any child day care facility other than a
family day care home, and includes infant centers, preschools, extended day care
facilities, and school -age child care centers.
[II f F:��1Z1Ili MAMMON
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M. "Delivery" means the commercial transfer of cannabis or cannabis products to a
customer, and includes the use of any technology platform owned and controlled by the
same person making such use.
N. rector" means the City of Morro Bay Community Development Director, and includes
his/her designee(s).
O. stribution" means the procurement, sale, and transport of cannabis and cannabis
products between entities licensed for and/or engaged in commercial cannabis activities.
P. "Distributor" means a person engaged in distribution.
Q. "Edible" means cannabis product that is intended to be used, in whole or in part, for
human consumption, including, but not limited to, chewing gum, but excluding products
set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural
Code. An edible cannabis product is not considered food, as defined by Section 109935
of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and
Safety Code.
R. "Employee" means any person (whether paid or unpaid) who provides regular labor or
regular services for a commercial cannabis operation, including, but not limited to, at the
location of a commercial cannabis operation. The term "employee" includes managers
and owners as used in this chapter.
S. "Extraction" means the process of obtaining cannabis concentrates from cannabis plants,
including but not limited to through the use of solvents like butane, alcohol or carbon
dioxide.
T. "Finance Director" means the City of Morro Bay Finance Director, and includes his/her
designee(s).
U. "Fire Chief' means the City of Morro Bay Fire Department Chief, and includes his/her
designee(s).
V. "Identification card" has the same definition as provided for in Health and Safety Code
section 11362.7(g), and as may be amended, defined as "a document issued by the [State
Department of Health Services] that identifies a person authorized to engage in the
medical use of cannabis and the person's designated primary caregiver, if any."
W. "Labeling" means any label or other written, printed, or graphic matter upon cannabis or
a cannabis product, upon its container or wrapper, or that accompanies any cannabis or
cannabis product.
X. "Location" means any parcel of land, whether vacant or occupied by a building, group of
buildings, or accessory buildings, and includes the buildings, structures, yards, open
spaces, lot width, and lot area.
Y. "Lighting" means the act of illuminating as well as the effect achieved by the
arrangement of lights,
Z. "Live scan" means a system for inkless electronic fingerprinting and the automated
background check developed by the California Department of Justice (DOJ) which
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involves digitizing fingerprints and electronically transmitting the fingerprint image data
along with personal descriptor information to computers at the DOJ for completion of a
criminal ,record check; or such other comparable inkless electronic fingerprinting and
automated background check process as determined by the City Council.
AA. "Manager" means an employee responsible for management and/or supervision of
a commercial cannabis operation.
BB. "Manufacture" or "manufacturing" means to compound, blend, extract, infuse, or
otherwise make or prepare a cannabis product; includes the activities of a manufacturer.
CC. "Manufacturer" means a person that conducts the production, preparation,
propagation, or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of chemical synthesis, or
by a combination of extraction and chemical synthesis at a fixed location that packages or
repackages cannabis or cannabis products or labels or relabels its container; includes the
activity of manufacturing.
DD. "Marijuana" has the same definition as provided for "cannabis" in this chapter.
EE. "Medical" refers to activity involving medical cannabis or medical cannabis
products, in contrast to an activity involving adult -use cannabis or adult -use cannabis
products.
FF. "Medical cannabis" or "medical cannabis product" means cannabis or a cannabis
product used in compliance with state law for medical purposes, pursuant to the
Compassionate Use Act (Health and Safety Code § 11362.5), the Medical Marijuana
Program Act (Health and Safety Code §§ 11362.7, et seq.), and the Medicinal and Adult -
Use Cannabis Regulation and Safety Act (Business and Professions Code §§ 26000, et
seq. ).
GG. "Merit List" shall refer to the criteria listed in Section 5.50.090(C) of this chapter.
HH. "Minor" means a person under twenty-one (21) years of age.
II. "Owner" means the owner of a commercial cannabis operation.
JJ. "Microbusiness" shall have the same definition as provided for in Section 26070
of the Business and Professions Code, and as may be amended.
(-
K. "Nursery" means a person that produces only clones, immature plants, seeds, and
other agricultural products used specifically for the planting, propagation, and cultivation
of cannabis.
LL. "Operations Officer(s)" shall refer to the Director, the Fire Chief, the Police
Chief, the Finance Director and the City Manager, individually or collectively.
MM. "Package" means any container or receptacle used for holding cannabis or
cannabis products.
NN. "Packaging" or "packages" means an activity involved with placing cannabis or
cannabis products in a package.
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00. "Park" means public land which has been designated for park or recreational
activities, including but not limited to a park, playground, nature trails, swimming pool,
athletic field, basketball court, tennis court, pedestrian or bicycle paths, beaches, open
space, or similar public land within the city or which is under the control, operation or
management of the city recreation and parks department.
PP. "Permittee" means a person issued a Commercial Cannabis Operation Permit by
the City of Morro Bay.
QQ. "Person" means any individual, firm, co -partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit.
RR. "Person with an identification card" has the same definition as provided for in
Health and Safety Code section 11362.7(c), and as may be amended, defined as "an
individual who is a qualified patient who has applied for and received a valid
identification card pursuant to this article."
SS. "Physician's recommendation" means a determination from a physician that a
patient's medical cannabis use is deemed appropriate and is recommended by the
physician on the basis of the physician has determined that the patient's health would
benefit from the use of cannabis in the treatment of cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides
relief, in strict accordance with the Compassionate Use Act of 1996 (Proposition 215),
and as understood by Section 11362.5 of the Health and Safety Code.
TT. "Religious institution" means any church, synagogue, mosque, temple, or
building which is used primarily for religious worship, religious education and related
religious activities.
UU. "Police Chief' means the City of Morro Bay Police Chief, and includes his/her
designee(s).
VV. "Police Department" means the City of Morro Bay Police Department.
WW. "Premises" means a single parcel of property. Where contiguous parcels are under
common ownership or control, such contiguous parcels shall be counted as a single
"premises."
XX. "Primary caregiver" has the same definition as provided for in Section 11362.7(d)
of the Health and Safety Code, and as may be amended, including being "the individual,
designated by a qualified patient or by a person with an identification card, who has
consistently assumed responsibility for the housing, health, or safety of that patient or
person" A "primary caregiver" shall also meet the requirements of Health and Safety
Code section 11362.7(e), and as may be amended, which provide that a "primary
caregiver shall be at least 18 years of age, unless the primary caregiver is the parent of a
minor child who is a qualified patient or a person with an identification card or the
primary caregiver is a person otherwise entitled to make medical decisions under state
law pursuant to Sections 6922, 7002, 7050, or 7120 of the Family Code."
YY. "Qualified Patient" has the same definition as provided for in Health and Safety
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Code section 11362.7(1), and as may be amended, defined as "a person who is entitled to
the protections of Section 11362.5, but who does not have an identification card issued
pursuant to this article."
ZZ. "Retailer" means a person engaged in the retail sale or delivery of cannabis or
cannabis products to a customer.
AAA. "School" means, as the term is understood. by Section 26054(b) of the Business
and Profession Code, and as may be amended, as a place of instruction in kindergarten or
any grades 1 through 12.
BBB. "Site" means the premises and actual physical location of a Commercial Cannabis
Operation, as well as its accessory structures and parking areas.
CCC. "Testing laboratory" or "testing" refers to a laboratory, facility, or entity that
offers or performs tests on cannabis or camlabis products; includes the activity of
laboratory testing.
DDD. "Youth center" means, as the term is understood by Section 26001(av) of the
Business and Profession Code, and as may be amended, any public or private facility that
is primarily used to host recreational or social activities for minors, including, but not
limited to, private youth membership organizations or clubs, social service teenage club
facilities, video arcades, or similar amusement park facilities.
Sec. 5.50.040 -Prohibited commercial cannabis operations.
A. Commercial cannabis operations (including non-profit operations) within the City which
involve the activities of cultivation, manufacturer, testing, retail (adult -use), distributor
(adult -use), or microbusiness are prohibited, including but not limited to commercial
cannabis activities licensed by the state license classifications listed below as provided in
Business and Professions Code § 26050:
1. Type 1 =Cultivation; Specialty outdoor; Small.
2. Type 1 A =Cultivation; Specialty indoor; Small.
3. Type 1 B = Cultivation; Specialty mixed -light; Small.
4. Type 1 C = Cultivation; Specialty cottage; Small.
5. Type 2 = Cultivation; Outdoor; Small.
6. Type 2A = Cultivation; Indoor; Small,
7. Type 2B = Cultivation; Mixed -light; Small.
8. Type 3 = Cultivation; Outdoor; Medium,
9. Type 3A = Cultivation; Indoor; Medium.
10. Type 3B = Cultivation; Mixed -light; Medium.
11. Type 4 = Cultivation; Nursery.
12. Type 5= Cultivation; Outdoor; Large.
13. Type 5A = Cultivation; Indoor; Large
14. Type 5B = Cultivation; Mixed -light; Large.
15. Type 6 = Manufacturer 1.
16. Type 7 = Manufacturer 2.
17. Type 8 = Testing.
18. Type 10 = Retailer (adult -use / non -medical).
19. Type 11 = Distributor (adult -use / non -medical).
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20. Type 12 = Microbusiness.
B. The prohibition provided by above subsection (A) includes any similar activities
authorized under new or revised state licenses, or any other state authorization, to allow
any type, category or classification of cannabis commercial activities which involve the
activities of cultivation, manufacturer, testing, retail (adult -use), distributor (adult -use),
microbusiness, or similar operations (including non-profit, collective or cooperative
operations).
Sec. 5.50.050 -Permitted commercial cannabis operations.
A. Commercial cannabis operations (including non-profit operations) within the City which
involve the activities of retail (medical) or distributor (medical) are allowed subject to
issuance and maintenance of a valid and current City Commercial Cannabis Operation
Permit, continuing adherence to this entire chapter and all applicable city and state
regulations and laws, and issuance and maintenance of a valid and current equivalent
state license type listed below, as provided for in Business and Professions Code §
26050:
l . Type 10 =Retailer (medical).
2. Type 11 Distributor (medical).
B. The requirements provided by above subsection (A) apply to any similar activities
authorized under new or revised state licenses, or any other state authorization, to allow
any type, category or classification of cannabis commercial activities which involve the
activities of retail (medical), distribution (medical), or similar operations (including non-
profit, collective or cooperative operations).
Sec. 5.50.060 -Commercial cannabis operation permit.
A. Prior to initiating operation as a commercial cannabis operation and as a continuing
requisite to conducting operations, the owner of a commercial cannabis operation shall
obtain a regulatory permit from the City under the terms and conditions set forth in this
chapter.
B. Issuance of a Commercial Cannabis Operation Permit is governed by a three -step
procedure (as provided for in more detail in Sections 5.50.080 and 5.50.090).
1. The first step (as provided for in Section 50.50.080) is a review by the Director to
determine whether an applicant meets the minimum qualifications for a
Commercial Cannabis Operation Permit, such minimum qualifications being the
requirements of this chapter, the Morro Bay City Code, and applicable state law.
If the Director makes a positive determination, then the application will be
deemed compliant, and eligible for review by the Cannabis Permit Committee as
to whether the permit should issue.
2. The second step (as provided for in Section 50.50.090) is a review by the
Cannabis Permit Committee of the thoroughness of applicant's adherence to Merit
List criteria CpPeifieri In Section 5.50.090(0. Upon conclusion of this review, the
Cannabis Permit Committee shall make a recommendation to the City Manager as
to whether or not a permit should be issued. The recommendation shall articulate
in writing reasons for the recommendation and refer to Merit List criteria.
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3. The third step as provided for in Section 50.50.90) is review by City Manager of
Cannabis Permit Committee recommendations, and then a decision on whether a
permit will or will not be issued. The reasons for the decision shall be articulated
in writing and refer to Merit List criteria specified in Section 5.50.090(C). The
decision shall be final and non -appealable.
C. Commercial Cannabis Operation Permits issued pursuant to this chapter shall
automatically expire one year from the date of issuance, unless provided for otherwise.
D. Conditions necessary for the continuing validity of a Commercial Cannabis Operation
Permit include:
1. Strict adherence to each and every requirement of this chapter, as well as any
requirements, including administrative regulations, adopted by the City pursuant
to the authority of this chapter.
2. Maintaining a current and valid state license under Section 26200 of the Business
and Professions Code, and as amended. Revocation, suspension or expiration of
the state license shall automatically invalidate the equivalent City Commercial
Cannabis Operation Permit.
3. Allowing Operations Officers to conduct reasonable inspections of the location of
the commercial cannabis operation at the discretion of the City, including but not
limited to inspection of security, inventory, and written records and files
pertaining to the commercial cannabis operation, for the purposes of ensuring
compliance with local and state law.
4. Maintaining with the City current and valid contact information of the owners)
and managers) of the commercial cannabis operation.
5. Maintaining with the City current and valid contact information of a legal
representative of the commercial cannabis operation.
6. Transferable only if transferee successfully completes all of the requirements that
a new applicant for a Commercial Cannabis Operation Permit would otherwise
need to meet.
Sec. 5.50.070 -Applications for commercial cannabis operation permit.
A. The owner of a proposed commercial cannabis operation shall file an application with the
Director upon a form provided by the City and shall pay a filing fee as established by
resolution adopted by the City Council, as may be amended from time to time.
Applications will be accepted beginning on July 1, 2018.
B. An application for a Commercial Cannabis Operation Permit shall include, but not be
limited to, the following information:
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L Business,
a. Activities. A general description of the proposed operation, including
how the proposed operation will operate in compliance with this Code
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01181.0001/423650.1
and state law, plans for handling cash and transporting cannabis and
cannabis products to and from the premises, and the proposed use of
alI areas on the premises, including but not limited to specific
activities, storage, lighting and signage.
b. Security. A security plan detailing measures to the satisfaction %J the
Director that all applicable security -related requirements under State or
local law, including but not limited to the requirements of Section
550.110(B), are and will be met.
c. Development Agreement. Applicants seeking to enter into a
development agreement with the City pursuant to Government Code
sections 65864, et seq., are encouraged to propose terms and
conditions, including but not limited to applicant benefits, public
outreach and education, community service, and payment of fees and
other charges as mutually agreed.
d. Odor Control. An odor control plan detailing odor control measures in
accordance with Section 550.110(C), to the satisfaction of the
Director.
e. Ownership. A description of the statutory entity or business form that
will serve as the legal structure for the applicant, the ownership
structure of the applicant as filed with the California Secretary of State
(e.g. limited liability company, joint partnership, S-Corporation) (an
applicant that is a foreign corporation shall include in its application
the certificate of qualification issued by the Secretary of State of
California), and a copy of the entity's formation and organizing
documents, including, but not limited to, articles of incorporation,
certificate of amendment, statement of information, articles of
association, bylaws, partnership agreement, operating agreement, and
fictitious business name statement.
f. Seller's Permit.- The seller's permit number issued by the Board of
Equalization or evidence that the applicant has applied for a seller's
permit from the Board of Equalization, as applicable.
g. Other Licenses and Permits. Identification of any other licenses or
permits for commercial cannabis operations, whether for the City of
Morro Bay or for any other licensing or permitting authority:
i. held currently by the applicant;
ii. pending approval for the applicant; or
denied to, revoked from or suspended for the applicant.
h. Physical. A general description of the proposed operation, including
the ctrePt arl�lreccparcel niimFJerthe tr�tal square frontage of the site
and the characteristics of the surrounding area.
i. Floor plan. A scaled floor plan for each level of each building that is
Ordinance No. 612
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part of the business site, including the entrances, exits, walls, and
operating areas. The floor plan must be professionally prepared by a
licensed civil engineer or architect.
j. Site plan. A scaled site plan of the business site, that will include at a
minimum all buildings, structures, driveways, parking lots, landscape
areas, and boundaries. The site plan must be professionally prepared
by a licensed civil engineer or architect.
k. Hours of Operation. Proposed hours and days of operation.
2. Individuals.
a. Managers. The name, address; e-mail and phone number of any person
who is managing or responsible for the commercial cannabis
operation's activities.
b. Community Outreach Manager. The name, e-mail and phone number
of an employee designated as Community Outreach Manager, who
will be responsible for outreach and communication with the
surrounding community, including the neighborhood and nearby
businesses.
c. Employees. A list of the names of all current and prospective
employees of the commercial cannabis operation, along with any other
identifying information requested by the Director.
d. Consent to Criminal Investigation. Written consent from all employees
to fingerprinting and a criminal background investigation by the City,
upon a form provided by the City, accompanied with payment of
appropriate fees to City to cover the costs of performing such criminal
background check. At the discretion of the City and in compliance
with State law, the City may use live scan to perform criminal
background checks.
e. Identification. For each employee, a color photocopy of either a valid
California Driver's License or equivalent identification approved by
the Director.
f. Land Owner. The name, address, e-mail and phone number of the
ov,��er ar�d lessor of the real property .upon which the commercial
cannabis operation is to be conducted. In the event the applicant is not
the legal owner of the property, the application must be accompanied
by a notarized acknowledgement from the owner of the property that a
commercial cannabis operation will be operated on his/her property.
3. Miscellaneous.
a, Any additional application requirements specific to the type of
Commercial Cannabis Operation Permit being sought, including but
not limited to as provided for by this chapter.
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b. Evidence satisfactory to the Director of compliance with all local and
state law requirements governing commercial cannabis operations.
c. Evidence satisfactory to the Director of compliance with all applicable
insurance requirements as provided for by this chapter, local law and
state law. Minimum insurance levels shall be determined by the
Director after an assessment of the risks posed by the commercial
cannabis operation, including provision for meeting the requirements
of Section 5.50.080(D)(2).
d. Authorization for the Director to seek verification of the information
contained within the application.
e. A statement in writing by the applicant that he or she certifies under
penalty of perjury that all the information contained in the application
is true and correct.
£ Any such additional and further information as is deemed necessary by
the Director to administer this chapter.
Sec. 5.50.080 -Compliance review of commercial cannabis operation permit application.
A. Upon receipt of a completed application and payment of all applicable fees, the Director
shall investigate the information contained in the application to determine whether the
applicant meets the minimum qualifications for a Commercial Cannabis Operation
Permit. These minimum qualifications are the requirements of this chapter, the Morro
Bay City Code, and applicable state law. If the Director makes a positive determination
then the application will be deemed compliant and eligible for review as to whether the
permit should issue pursuant to the provisions in Section 5.50.090.
B. If the Director determines that the application is incomplete, the Director shall notify the
applicant in writing explaining the reasons thereof wn sixty (60) days of receipt %J the
application. Applicant shall have 30 days to submit a completed application, in
accordance with the Director's notification. If the application is resubmitted as
incomplete„ it shall be deemed abandoned. The applicant may then resubmit a new
application for a new review pursuant to the requirements of this section.
C. Within ninety (90) days of receipt of the completed application, the Director shall
complete the investigation, approve, conditionally approve, or deny the application as
being in compliance with the requirements of this chapter, and so notify the applicant by
United States mail, first class postage prepaid, addressed to the applicant at the address
stated in the application.
D. An applicant shall not be deemed compliant for purposes of review under Section
5.50.090, until and unless an applicant meets all of the following requirements:
1. Provides written authorization to the Operations Officers to conduct reasonable
unannounced inspections of the location of the commercial cannabis operation at
the discretion of the City, including but not limited to inspection of security,
inventory, and written records and files pertaining to the commercial cannabis
operation, for the purposes of ensuring compliance with this chapter and all laws
of the City and the State of California.
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2. Executes an agreement: to indemnify, defend and hold harmless (at the
Commercial Cannabis Operation Permit holder's sole expense, the ability to do so
demonstrated through proof of sufficient insurance coverage to the satisfaction of
the City) the City, its elected officials, employees, agents, officers, and
representatives, and each and all of them individually, from all liability or harm
arising from or in connection with all claims, damages, attorney's fees, costs and
allegations arising from or in any way related to the operation of the commercial
cannabis operation; and, to reimburse the City for any costs and attorney's fees
that the City may be required to pay as a result of such action. The City may, at its
sole discretion, participate at its own expense in the defense of any such action.
E. Upon successfully completing the review process, the permit application shall be deemed
compliant and eligible for review under Section 5.50.090, unless the Director finds:
1. The applicant has made one or snore false or misleading statements or omissions,
either on the written application or during the application process; or
2. A proposed location for the commercial cannabis operation is not allowed by state
or local law, statute, ordinance, or regulation (including this Code); or
3. The applicant has not satisfied each and every requirement of this chapter and
Code; or
4. The applicant is not in compliance with applicable state law, including, but not
limited to, applicable requirements and minimum standards of the Adult Use of
Marijuana Act of 2016 (AUMA) (Proposition 64), the Medicinal and Adult -Use
Cannabis Regulation and Safety Act of 2017 (MAUCRSA) and any applicable
State regulations.
F. Based on the information set forth in the application and the Director's review, the
Director may impose, as a condition of being deemed compliant and thereby eligible for
review under Section 5.50.090, reasonable terms and conditions on the use of the permit,
in addition to those specified in this chapter, to ensure the safe operation of the
commercial cannabis operation, and to ensure the health, safety and welfare of the
residents and visitors of the City of Morro Bay.
G. At the Director's sole discretion, the time limits in this Section may be extended upon
written notification from the Director to the applicant.
Sec. 5.50.090 -Issuance of commercial cannabis operation permit.
A. Issuance of a Commercial Cannabis Operation Permit constitutes a revocable privilege
and shall not create or establish any vested rights for the development or use of a
property. The City may determine that it is in the best interests of the health, safety and
welfare of the residents and visitors of the City of Morro Bay that no Commercial
Cannabis Operation Permits are to be granted by the City.
B. Upon determination by the Director that an applicant is compliant with the requirements
of this chapter, the Morro Bay City Code, and applicable state law (and thereby eligible
for review by the Cannabis Permit Committee to determine whether or not a City of
Morro Bay Commercial Cannabis Operation Permit will be issued), the Director shall
promptly prepare for the application a written Merit 'List for provision to the Cannabis
Permit Committee.
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C. A Merit List shall detail and rank in writing the thoroughness of an applicant's adherence
to the following criteria, as they relate to the maintenance and promotion of the health,
safety and welfare of the residents and visitors of the City of Morro Bay:
1. Operation plan for the business, including attention to community concerns about
the impact of the business.
2. Security plan for the business, including details for the non -diversion of cannabis
or cannabis products to illegal uses.
3. Health and safety plan for the business, including enhanced product and
operations health and safety.
4. Impact on the environment.
5. Neighborhood compatibility.
6. Employment opportunities for City of Morro Bay residents.
7. Economic benefits to the City of Morro Bay,
8. Community benefits to the City of Morro Bay,
9. Experience of the operators, managers and employees.
10. Capitalization of the business.
11. Requirements of this chapter, this Code and applicable State law.
12. Any additional criteria the Director determines is of benefit to making a
determination of the applicant's commitment to the health, safety and welfare of
the residents and visitors of the City of Morro Bay.
D. The Cannabis Permit Committee shall determine in writing, within a reasonable amount
of time after receipt from the Director of the Merit List, whether to recommend to the
City Manager that the requested Commercial Cannabis Operation Permit shall be issued.
The recommendation shall use the criteria contained within Section 5.50.090(C).
1. Factors to be considered shall include the written Merit List, as well as all
pertinent evidence timely submitted (at the determination of the Cannabis Permit
Committee) by the applicant, the public, and interested parties. No pre -determined
weight shall be given to one criterion or another.
2. Each application shall be considered in its totality with weight given to one
criterion over another as determined appropriate by the Cannabis Permit
Committee to further the maintenance and promotion of the health, safety and
welfare of the residents and visitors of the City of Morro Bay.
3. Upon conclusion of this review, the Cannabis Permit Committee shall make a
recommendation to the City Manager as to whether or not a permit should be
issued. The recommendation shall articulate reasons in writing for the
recommendation and refer to Merit List criteria.
E. The City Manager shall make a final determination in writing, within a reasonable
amount of time after receipt from the Cannabis Permit Committee of a recommendation,
whether the applicant shall be issued a Commercial Cannabis Operation Permit.
1. Factors to be considered shall include the written Merit List, as well as all
pertinent evidence timely submitted (at the determination of the City Manager) by
the applir_nnt, the pljblic, and interested parties. No pre-Cetermined weight shall be
given to one criterion or another.
2. Each application shall be considered in its totality with weight given to one
01181.0001/423650.1
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criterion over another as determined appropriate by the City Manager to further
the maintenance and promotion of the health, safety and welfare of the residents
and visitors of the City of Morro Bay.
3. Notice of the written determination shall be provided promptly Lo the applicant
upon final determination. The determination shall articulate reasons in writing for
the final determination and refer to Merit List criteria. The determination shall be
final and not appealable.
F. The City Manager may impose reasonable terms and conditions on the use of the permit,
in addition to those specified in this chapter, to ensure the safe operation of the
commercial cannabis operation, and to ensure the health, safety and welfare of the
residents and visitors of the City of Morro Bay.
G. As determined appropriate by the City, multiple qualified applications for Commercial
Cannabis Operation Permits may be considered at the same time, for reasons including
but not limited to comparison of applicants for limited permits using the criteria
contained within Section 5.50.090(C). The permit process timelines provided by this
chapter may be modified by the City to facilitate such review of multiple applications.
Sec 5.50.100 -Renewal of commercial cannabis operation permit.
A. Issuance of a Commercial Cannabis Operation Permit constitutes a revocable privilege
and shall not create or establish any vested rights for the development or use of a
property. The City may determine through the procedures provided in this chapter that for
reasons of the health, safety and welfare of the residents and visitors of the City of Morro
Bay that a Commercial Cannabis Operation Permit will not be renewed.
B. Commercial Cannabis Operation Permits issued pursuant to this chapter shall
automatically expire one year from the date of issuance, unless specifically provided for
otherwise by this chapter.
C. The following procedures shall govern the process for the renewal of a Commercial
Cannabis Operation Permit:
1. A holder of a Commercial Cannabis Operation Permit may apply for the renewal
of an existing permit no less than 60 days prior to the permit's expiration date
upon a form provided by the City and shall pay a filing fee as established by
resolution adopted by the City Council as amended from time to time.
2. Renewal applications shall comply with all of the requirements in this chapter for
applying for a new Commercial Cannabis Operation Permit. At the discretion of
the City, renewal applications may consist of updating any changes to an original
application or previous renewal application.
3. The Director will review permit renewal applications and make a determination as
to whether the commercial cannabis operation has remained in compliance with
all the requirements of this chapter and State law during the prior term of the
1t1theDtV1aeALyUthaplcat'1r ape1111. 1.11k3 aUIrarULlML1e plV1 V
permit renewal shall be denied.
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4. If the Director determines the commercial cannabis operation has remained in
compliance with all the requirements of this chapter and state law during the prior
term of the permit, the permit renewal application shall then be subject to the
requirements of Section 5.50.090 (including the attendant preparation of a Merit
List applicable to the prior term's operations), and the Director shall provide to
the Cannabis Permit Committee a written Merit List. The Cannabis Permit
Committee shall then recommend to the City Manager in writing whether the
permit should be renewed. The City Manager shall review the recommendation
and then make a final decision on whether to grant an application for a permit
renewal. The decision shall be final and non -appealable.
5. If the holder of a Commercial Cannabis Operation Permit files a renewal
application less than 60 days prior to expiration, the holder must provide a written
explanation detailing the circumstances surrounding the late filing. The Director
may deny the untimely application after review of the explanation. If the Director
accepts the application, then the Director may elect to administratively extend the
permit beyond the expiration date while the Director completes the renewal
permitting process. Untimely applications for renewal which are nevertheless
accepted by the Director pursuant to this section are subject to a late penalty.
D. A Commercial Cannabis Operation Permit is immediately invalid upon expiration if the
permit holder has not filed a timely and/or accepted renewal application and remitted all
of the required renewal fees. In the event the permit is not renewed prior to expiration,
the affected commercial cannabis operation shall cease operation upon the expiration of
the permit and is thereafter considered to be unlawful.
Sec. 5.50.110 -General operating standards and restrictions.
A commercial cannabis operation shall operate in conformance with the following minimum
standards, and such standards shall be deemed to be part of the conditions on the permit for a
commercial cannabis operation to ensure that its operation is in compliance with California law
and the Morro Bay Municipal Code, and to mitigate any potential adverse impacts of the
commercial cannabis operation on the public health, safety or welfare.
Additional minimum standards may be adopted from time to time either by resolution or
ordinance from the City Council, or by the Director (upon authorization by resolution from the
City Council).
A. State Standards. All state requirements and regulations that govern the operation of a
commercial cannabis operation, including but not limited to ones related specifically to
certain types of commercial cannabis operations, shall apply as minimum requirements
and regulations and requirements for commercial cannabis operations within the City of
Morro Bay, in addition to the requirements and regulations of this chapter and this Code.
B. Security.
1. General. All cannabis, cannabis products and cash present or kept at the premises
shall be securely stored against both unauthorized access as well as theft.
2. Security Cameras.
01181.0001/423650.1
a. Security cameras shall be installed and maintained in good condition, with
Ordinance No. 612
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at least 30 days of digitally recorded documentation in a format approved
by the Director and the Police Chief.
b. The camera and recording system must be of adequate quality, color
rendition, and resolution to allow the identification of any individual
present at the site of the commercial cannabis operation.
c. The cameras shall be in continuous use 24 hours per day, 7 days per week.
d. The recording system must be capable of exporting the recorded video in
standard MPEG formats to another common medium approved by the
Director, such as DVD and/or a USB drive.
e. The areas to be covered by the security cameras include, but are not
limited to, the storage areas, operation areas, all doors and windows, the
parking lot, all exterior sides of the property adjacent to the public rights
of way, and any other areas as determined by the Director and Police
Chief.
f. Remote log -in information will be provided to the Operations Officers to
allow them to view live and recorded security camera images remotely at
any time.
3. Alarm System. The location of the commercial cannabis operation shall be
alarmed with a centrally -monitored fire and burglar alarm system, and monitored
by an alarm company properly licensed by the State of California Department of
Consumer Affairs Bureau of Security and Investigative Services in accordance
with California Business & Professions Code section 7590, et seq. and whose
agents are properly licensed and registered under applicable law.
4. Locked Entrances. All entrances into the building housing a commercial cannabis
operation shall be locked from the exterior at all times with entry controlled by
employees.
5. Windows. All windows on the building that houses the commercial cannabis
operation shall be secured against entry from the outside.
6. No employee shall ,refuse, impede, obstruct or interfere with an inspection
conducted pursuant to the authorizations provided by this chapter.
C. Odors.
1. A commercial cannabis operation shall have an air treatment system that ensures
off -site odors shall not result from its activities.
2. This requirement at a minimum means that the commercial cannabis operation
shall be designed to provide sufficient odor absorbing ventilation and exhaust
systems so that any odor generated inside the location of the commercial cannabis
operation is not detected outside the building, on adjacent properties or public
rights -of --way, or within any other unit located within the same building as the
commercial cannabis operation, if the use only occupies a portion of a building.
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D. Authorizations.
1. The Operations Officers shall have the right to enter all areas of the commercial
cannabis operation from time to time unannounced for the purpose of making
reasonable inspections to observe and enforce compliance with this chapter and
all laws of the City and State of California.
2. Recordings made by security cameras required pursuant to this chapter shall be
made available to the Operations Officers upon verbal request; no search warrant
or subpoena shall be needed to view the recorded materials.
E. Records.
1. Commercial cannabis operations shall maintain on -site the following records
either in paper or electronic form:
a. The full name, address, and telephone numbers of the owner and lessee of
the property.
b. The name, date of birth, address, and telephone number of each employee
of the commercial cannabis operation; the date each was hired; and the
nature of each employee's participation in the commercial cannabis
operation.
c. Copies of all required state licenses.
d. An inventory record documenting the dates and amounts of cannabis and
cannabis products received at the site, the daily amounts of cannabis and
cannabis products on the site, and the daily amounts of cannabis and
cannabis products leaving the site for any reason, including but not limited
to being sold, delivered, or distributed.
e. A written accounting of all expenditures, costs, revenues and profits of the
commercial cannabis operation, including but not limited to cash and in -
kind transactions.
£ A copy of all insurance policies related to the operation of the commercial
cannabis operation.
g. A copy of the commercial cannabis operation's most recent year's
financial statement and tax return.
h. Proof of a valid and current permit issued by the City in accordance with
this chapter, and the equivalent State of California license to operate the
commercial cannabis operation. Every commercial cannabis operation
shall display at all times during business hours the City permit issued
pursuant to the provisions of this chapter, and the equivalent State license,
in a conspicuous place so that it may be readily seen by all persons
entering the lnp.ation of the commercial cam abis operation,
2. All records required to be maintained by the commercial cannabis operation must
be maintained for no less than three (3) years and are subject to immediate
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Ordinance No. 612
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inspection (consistent with requirements pertaining to patient confidentiality
pursuant to applicable State and Federal law) upon a lawful written request by an
Operation Officer.
3. A commercial cannabis operation shall report any loss, damage, or destruction of
these records to the Operation Officers within twenty-four (24) hours of the loss,
damage, or destruction.
F. Site Management.
1. Commercial cannabis operations shall not result in a nuisance or adversely affect
the health, welfare, or safety of nearby persons by creating dust, glare, heat, noise,
noxious gases, odors, smoke, traffic, vibration, or other impacts, or be hazardous
due to use or storage of materials, processes, products or waste. The permittee
shall promptly and diligently both prevent as well as eliminate conditions on the
site of the commercial cannabis operation that constitute a nuisance.
2. The Commercial Cannabis Operation permittee shall maintain the exterior of the
site, including any parking lots under the control of the permittee, free of litter,
debris, and trash.
3. The Commercial Cannabis Operation permittee shall properly store and dispose of
all waste generated on the site, including chemical and organic waste, in
accordance with all applicable laws and regulations.
4. Notwithstanding any provisions of this code to the contrary, the Commercial
Cannabis Operation permittee shall remove all graffiti from the site and parking
lots under the control of the Commercial Cannabis Operation Permittee within 72
hours of its application.
G. State Board of Equalization Seller's Permit Required.
1. Commercial cannabis operations must obtain a Seller's Permit from the State
Board of Equalization as applicable.
2. Such permit shall be displayed in a conspicuous place so that it may be readily
seen by all persons entering the location of the commercial cannabis operation.
H. Employees.
1. All employees must submit to fingerprinting and criminal background checks by
the City.
01181.0001/423650.1
a. No employee convicted within the last ten years of a felony substantially
related to the qualifications, functions or duties of an employee of a
commercial cannabis operation (such as a felony conviction for
distribution of controlled substances, money laundering, racketeering, etc.)
shall be employed by a commercial cannabis operation, unless such
employee has obtained a certificate of rehabilitation (exp„ngement of
felony record) under California law or under a similar federal statute or
state law where the expungement was granted.
Ordinance No. 612
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b. At the request of the commercial cannabis operation, the Director and
Police Chief shall determine the applicability of this section to a potential
employee within a reasonable period of time after a written request has
been made to the Director and Police Chief for such determination.
2. All employees must possess a valid government issued (or equivalent) form of
identification containing an identifying photograph of the employee, the name of
the employee, the date of birth of the employee, and the residential address of the
employee. Color copies of such identification shall be maintained at the location
of the commercial cannabis operation. A valid California Driver's license will
satisfy this requirement.
I. Cannabis Transfer Between Permitted Operations Only.
A commercial cannabis operation shall not transfer cannabis or cannabis products to or
from another commercial cannabis operation, unless both operations are in possession of
all required state and local licenses and permits.
J. Commercial Cannabis Operation Signage.
1. Signs on the premises shall not obstruct the entrance or the video surveillance
system. The size, location, and design of any signage must conform to the sign
provisions in the Morro Bay Municipal Code.
2. Business identification signage shall be limited to that needed for identification
only, consisting of a single window sign or wall sign that shall comply with the
appropriate sign requirements within the applicable zoning district.
K. Prohibited Personal Activities.
1. Cannabis Use. No person shall smoke, ingest, or otherwise consume cannabis in
any form on, or within 20 feet of, the site of the commercial cannabis operation.
2. Alcohol Use. No person shall possess, consume, or store any alcoholic beverage
on the site of the commercial cannabis operation.
L. No Minors. No minor shall be an employee of, or participate in, a commercial cannabis
operation in any capacity, including but not limited to, as a manager, employee,
contractor, adviser, or volunteer.
M. Exterior Lighting. The exterior of the premises upon which the commercial cannabis
operation is operated shall be equipped with and, at all times between sunset and sunrise,
shall remain illuminated with fixtures of sufficient intensity and number to illuminate
every portion of the property with an illumination level of not less than one foot-candle
as measured at the ground level, including, but not limited to, landscaped areas, parking
lots, driveways, walkways, entry areas, and refuse storage areas.
N. Building Design. A Commercial Cannabis Operation permittee must maintain the design
of the 1J»ilrlitZgs nn the Bite in ae.enrrlaneP with the rnlang that are apr�rnyerl ley the City
pursuant to this chapter and otherwise approved by the City. No permittee shall modify
the buildings on the site contrary to the approved plans, without the approval of the
Director.
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O. Nuisance. The Commercial Cannabis Operation permittee shall take all reasonable steps
to discourage andcorrect conditions that constitute a nuisance in parking areas,
sidewalks, alleys and areas surrounding the premises and adjacent properties during
business hours if related to the members of the subject commercial cannabis operation.
1. "Reasonable steps" shall include immediately calling the police upon observation
of the activity, and requesting that those engaging in activities that constitute a
nuisance or are otherwise illegal to cease those activities, unless personal safety
would be threatened in making the request.
2. "Nuisance" includes but is not limited to disturbances of peace, open public
consumption of cannabis, alcohol or controlled substances, excessive pedestrian
or vehicular traffic, including the formation of any pedestrian lines outside the
building, illegal drug activity, harassment of passersby, excessive littering,
excessive loitering, illegal parking, excessive loud noises, especially late at night
or early in the morning hours, lewd conduct or police detentions and arrests.
P. Upon and after receiving possession of a Commercial Cannabis Operation Permit as
provided for in this chapter, the Commercial Cannabis Operation Permit holder shall:
1. Immediately update the Director in writing upon the change in status of any of the
information previously submitted to the City concerning the commercial cannabis
operation, including but not limited to when there is any change in the address,
email, phone number, or other identifying information, previously provided to the
City in compliance with this chapter, for any owner, manager, community
outreach manager, property owner, or legal representative of the commercial
cannabis operation.
2. Maintain continuing compliance with criminal background check requirements of
this chapter by ensuring that:
a. upon the hiring, association or retention of an employee by the
commercial cannabis operation, the requirements of Section
5.50.070(B)(2)(d) are immediately met for such employee by provision
of appropriate documentation to the Director; and
b. the Director and Police Chief are immediately informed in writing of
any felony conviction as described in Section 5.50.110(H)(1)(a) for any
current employee.
3. Maintain continuing compliance with all applicable insurance requirements,
including, but not limited to, those imposed by City and this chapter.
Q. Exemption. The regulations contained in this chapter shall not apply to a commercial
cannabis operation engaged in the following uses, as long as such use complies strictly
with applicable law, including this Code, regulating such use and the location of such
use, including, but not limited to, Sections 11362.5, et seq. of the Health and Safety: a
clinic licensed pursuant to Chapter 1 of Division 2 of the Health and gnfety Cn(1P; a
health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety
Code; a residential care facility for persons with chronic life -threatening illness licensed
pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code; a residential care
01181,0001/423650.1
Ordinance No. 612
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facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and
Safety Code; and, a residential hospice or a home health agency licensed pursuant to
Chapter 8 of Division 2 of the Health and Safety Code.
Sec. 5.50.120 - Retail (medical) operating standards and restrictions.
A commercial cannabis operation engaged in retail (medical) shall operate in conformance with
both the General Operating Standards and Restrictions provided for in Section 5.50.110, as well
as the following minimum standards, and such standards shall be deemed to be part of the
conditions of the permit for a retail (medical) commercial cannabis operation to ensure that its
operation is in compliance with California law and the Morro Bay Municipal Code, and to
mitigate any potential adverse impacts of the commercial cannabis operation on the public
health, safety or welfare.
Additional minimum standards may be adopted from time to time either by resolution or
ordinance from the City Council, or by the Director (upon authorization by resolution from the
City Council).
A. City Permit and State License. No person shall engage in retail (medical) without both a
current and valid City Commercial Cannabis Operation Permit issued for retail (medical)
as well as a current and valid equivalent state license as provided for under Section 26200
of the Business and Professions Code, and as may be amended.
B. State Standards. All state requirements and regulations that govern retail (medical)
operations, including but not limited to the regulations promulgated by the California
Bureau of Cannabis Control within the Department of Consumer Affairs, and as may be
amended, shall apply as minimum requirements and regulations and requirements for
retail (medical) commercial cannabis operations within the City of Morro Bay, in
addition to the requirements and regulations of this chapter and this Code.
C. Location Restrictions.
1. No retail (medical) operation shall locate or operate in any zone of the City of
Morro Bay, other than in the central business (C-1) district, the general
commercial (G2) district, or the light industrial (M4) district.
2. No retail (medical) operation shall locate within six hundred (600) feet of a
schoolI day care center, or youth center. The distance shall be measured as the
horizontal distance measured in a straight line from the property line of one site to
the property line of another site.
3. No retail (medical) operation shall locate within one hundred (100) feet of a park.
The distance shall be measured as the horizontal distance measured in a straight
line from the property line of one site to the property line of another site.
4. No retail (medical) operation shall locate within one hundred (100) feet from
another retail (medical) operation. The distance shall be measured as the
horizontal distance measured in a straight line from the property line of one site to
the prnper±y line of another site.
D. Number of Permits. No more than two permits shall be active and valid in the City at any
one time. In the event less than two permits are active and valid in the City, in its sole
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Page 32 of 43
discretion the City may accept permit applications pursuant to the provisions of this
chapter.
E. Renewal of Permits. Subject to the requirements of Section 5.50.100, the City in its sole
discretion may elect to extend the term, of one of the two permits initially issued (or
thereafter, to achieve staggered review of permit renewal applications), so that each year
thereafter the City shall only review one request for a permit renewal.
F. Customers. Retail (medical) operations shall only sell, dispense, or provide cannabis or
cannabis products to a qualified patient with a written physician's recommendation, a
person with an identification card, or a primary caregiver with written documentation
attesting to lawful status as a primary caregiver.
G. Opaque Packaging. All cannabis or cannabis products sold to a customer shall be
prohibited from leaving the site unless placed in opaque packaging which conceals the
nature of the product from human vision.
H. Dispensing and Storage Areas. Entrance to the dispensing area and any storage areas
shall be locked at all times, and under the control of employees.
I. Edibles.
1. All edible cannabis products available for sale must be clearly labeled as medical
cannabis.
2. No edible cannabis products shall be available for sale which are appealing to
children or easily confused with commercially sold candy or foods that do not
contain cannabis.
3. All edible cannabis products shall be provided to customers with sufficient
information to enable the informed consumption of the product, including the
potential effects of the cannabis product and directions as to how to consume the
cannabis product, as necessary.
4. All edibles cannabis products for sale shall be marked with a universal symbol, as
determined by the State Department of Public Health through regulation, pursuant
to Section 26130(c)(7) of the Business and Professions Code.
J. Interior Lighting. The premises within which the commercial cannabis operation is
operated shall be equipped with and, at all times during which is open to the public, shall
remain illuminated with overhead lighting fixtures of sufficient intensity to illuminate
every place to which members of the public or portions thereof are permitted access with
an illumination of not less than two foot-candles as measured at the floor level.
K. Signs. A permittee .shall display conspicuously in the lobby of the site the following
signs, so that each sign may be readily seen by persons entering the site, and each sign
must be at least 8 inches by 10 inches in size:
1, "Minors are prohibited from entering this site unless they are a qualified patient or
a primary caregiver, and they are in the presence of their parent or legal
guardian."
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2. "Smoking, ingesting, or consuming cannabis on or within zu feet of this site is
prohibited."
L. No Recommendations On -site. Retail (medical) operations shall not have a physician or
any person licensed to recommend medical cannabis for medical use, at the location of
the commercial cannabis operation, to provide a recommendation or physician's
recommendation, for the use of medical cannabis.
M. Sanitation. The permittee shall establish and implement written procedures that maintain
the highest industry standards of sanitation and cleanliness for the operation so as to
ensure cannabis and cannabis products sold to the public are free of harmful
contaminants.
N. Training. The pennittee shall establish and implement written procedures that provide for
the highest industry standards of training for employees.
O. Prohibited Activities. No cannabis cultivation, testing or manufacturing shall occur at the
location of the retail (medical) operation.
P. No Alcohol. Retail (medical) operations shall not hold or maintain a license from the
State Department of Alcoholic Beverage Control to sell alcoholic beverages, or operate a
business that sells alcoholic beverages.
Q. No Lounge or Cafe. Retail (medical) operations shall not operate as a lounge, cafe or
restaurant serving food or drinks for consumption on -site. There shall be no seating area,
tables, couches, or chairs for the gathering or congregating of members.
R. Age Restriction. Minors are prohibited from entering the location of the retail (medical)
operation unless they are a qualified patient or a primary caregiver, and they are in the
presence of their parent or legal guardian.
S. Public Information. The. permittee shall make available to customers a list of the rules
and regulations governing medical cannabis use and consumption within the City and
recommendations on sensible medical cannabis etiquette.
Sec. 5.50.130 -Wholesale distribution (medical) operating standards and restrictions.
A commercial cannabis operation engaged in distribution shall operate in conformance with both
the General Operating Standards and Restrictions for all Commercial Cannabis Operations
provided for in Section 5.50.110, as well as with the following minimum standards, and such
standards shall be deemed to be part of the conditions of the permit for a distribution commercial
cannabis operation to ensure that its operation is in compliance with California law and the
Morro Bay Municipal Code, and to mitigate any potential adverse impacts of the commercial
cannabis operation on the public health, safety or welfare.
Additional minimum standards may be adopted from time to time either by resolution or
ordinance from the City Council, or by the Director (upon authorization by resolution from the
City Council).
A. City Permit and State License. No person shall engage in distribution without both a
current and valid City Commercial Cannabis Operation Permit issued for distribution as
well as a current and valid equivalent state license as provided for under Section 26200 of
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Ordinance No. 612
Page 34 of 43
the Business and Professions Code, and as may be amended.
B. State Standards. All state requirements and regulations that govern distribution
operations, including but not limited to the regulations promulgated by the California
Bureau of Cannabis Control within the Department of Consumer Affairs, and as may be
amended, shall apply as minimum requirements and regulations and requirements for
distribution commercial cannabis operations within the City of Morro Bay, in addition
the requirements and regulations of this chapter and this Code.
C. Location Restrictions.
1. No distribution operation shall locate or operate in any zone of the City of Morro
Bay, other than in the central business (C4) district, the general commercial (C-2)
district, or the light industrial (M-1) district.
2. No distribution operation shall locate within six hundred (600) feet of a school,
day care center, or youth center. The distance shall be measured as the horizontal
distance measured in a straight line from the property line of one site to the
property line of another site.
3. No distribution operation shall locate within one hundred (100) feet of a park. The
distance shall be measured as the horizontal distance measured in a straight line
from the property line of one site to the property line of another site.
D. Distribution Restrictions.
1. Distribution operations shall distribute cannabis and cannabis products only
between licensed cannabis commercial operations.
2. Distribution operations shall not conduct retail sales of cannabis or cannabis
products.
3. Distribution operations shall not distribute any cannabis or cannabis products to
retail operations unless such cannabis or cannabis products has been properly
tested and approved for retail sale pursuant to State law.
4. Upon demand by any Operation Officer a distributor shall make immediately
available copies of any required shipping manifests as understood by Section
26070(t) of the Business and Professions Code.
E. Site Requirements. The site shall comply with the following requirements:
I.
Visibility. Neither cannabis nor cannabis products shall be visible from the public
right -of --way, the unsecured areas surrounding the buildings on the site, or the
site's main entrance and lobby.
2. Main Entrance and Lobby. The site shall have a building with a main entrance
that is clearly visible from the public street or sidewalk. The main entrance shall
be maintained clear of barriers, lanng, e dd nnTncirofthe
) r
main entrance, there shall be a lobby to receive persons into the site and to verify
whether they are allowed in the distribution commercial cannabis operation areas.
Members of the general public shall not be allowed in the distribution commercial
01181.0001/423650.1
Ordinance No. 612
Page 35 of43
cannabis operation areas except for reasons of lawful business.
3. Secure Product. All cannabis and cannabis products at the site shall be kept in a
secured manner at all times.
4. Transport Area. Each bung with a storage area shall have an area designed for
the secure transfer of cannabis from vehicles to the storage area.
5. Storage Area. Each building shall have adequate storage space for cannabis. The
storage areas shall be separated from the main entrance and lobby, and shall be
secured by a lock accessible only to employees of the permittee.
F. Sanitation. The permittee shall establish and implement written procedures that maintain
the highest industry standards of sanitation and cleanliness for the operation so as to
ensure the distribution of cannabis and cannabis products free of harmful contaminants.
G. Training. The permittee shall establish and implement written procedures that provide for
the highest industry standards of training for employees engaged in distribution
operations.
H. Signs. A permittee shall display conspicuously in the lobby of the site the following
signs, so that each sign may be readily seen by persons entering the site, and each sign
must be at least 8 inches by 10 inches in size:
1. "This site is not open to the public."
2. "Retail sales of any goods and services is prohibited"
3. "Minors are prohibited from entering this site."
4. "Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is
prohibited."
I. Prohibited Activities.
1. No cannabis cultivation, manufacturing or testing shall occur at the site.
2. No retail sales of cannabis or cannabis products shall occur at the site.
J. Restricted Access.
1.
The site shall be closed to the general public.
2. Minors are prohibited from entering the location of the site.
Sec. 5.50.140 -Delivery (medical) operating standards and restrictions.
A. Deliveries Allowed.
1. Medical cannabis deliveries are allowed in the City subject to the requirements of
this chapter and compliance with applicable state law.
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2. Adult -use (recreational) cannabis deliveries in the City are prohibited.
B. Licenses and Permits. Deliveries of cannabis and cannabis products shall only occur
within the City by a commercial cannabis operation properly licensed or permitted to
engage in cannabis deliveries by both the State of California as well as the originating
jurisdiction of the delivery.
C. Documentation Required for Deliveries.
1. During deliveries the person making the actual delivery shall maintain at all times
on his or her person a physical copy of the delivery request being fulfilled, a
government -issued identification of the delivery person with a photograph, a copy
of the State license which authorizes the delivery activity, and any other license or
permit required by the originating jurisdiction to engage in the delivery of
cannabis or cannabis products
2. Upon request made by any Operations Officer or law enforcement officer the
person shall make these documents immediately available for review.
D. Business License. Commercial cannabis operations that conduct deliveries of cannabis or
cannabis products to customers located in the City, regardless of the originating
jurisdiction of the delivery, are required to have a valid and current City business license
to engage in such commercial activity.
Sec. 5.50.150 -Administration.
Further rules, regulations, procedures and standards for the administration and implementation of
this chapter may be adopted from time to time either by resolution or ordinance from the City
Council, by the Director (upon authorization by resolution from the City Council), or as further
provided by this chapter.
Sec. 5.50.160 -Fees.
An application fee set by resolution of the City Council shall be required for formal processing
of every application made under this chapter. The City Council is authorized to pass resolutions
to recover any and all fees and costs incurred by the administration and implementation of this
chapter through an appropriate fee recovery mechanism to be imposed upon commercial
cannabis operations.
Sec. 5.50.170 -Suspension and revocation.
A. The Director is authorized to suspend and/or revoke a Commercial Cannabis Operation
Permit issued pursuant to this chapter upon the determination through written findings of
a failure to comply with any provision of this chapter, any permit condition, or any
agreement or covenant as required pursuant to this chapter.
B. The Director may suspend or revoke a Commercial Cannabis Operation Permit if any of
the following occur, and the suspension or revocation shall be final:
1. The Director determines that the commercial cannabis operation has failed to
comply with any aspect of this chapter, any permit condition, or any agreement or
covenant as required pursuant to this chapter; or
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2. The equivalent State license has been suspended or revoked by the State of
California; or
3. Operations cease for more than 180 calendar days (including during any change
of ownership, if applicable); or
4. Ownership is changed without securing a new Commercial Cannabis Operation
Permit; or
5. The commercial cannabis operation fails to maintain required security camera
recordings; or
6. The commercial cannabis operation fails to allow inspection of the security
recordings, the activity logs, the records, or of the site by Operations Officers
pursuant to this chapter.
C. Conditions (if any) of suspension or revocation are at the discretion of the Director and
may include, but are not limited to, a prohibition on all owners, operators, managers and
employees of the suspended or revoked commercial cannabis operation from operating
within the City for a period of time set forth in writing and/or a requirement (when
operations may resume, if at all, pursuant to the Director's determination) for the holder
of the suspended or revoked permit to resubmit an application for a Commercial
Cannabis Operation Permit pursuant to the requirements of this chapter.
Sec. 5.50.180 -Violations and penalties; public nuisance.
A. Any violation of the provisions of this chapter is punishable as a misdemeanor or an
infraction, at the discretion of the city prosecutor, pursuant to Chapter 1.16 of the Morro
Bay City Code, except for as preempted by state law; and, any violation of the provisions
of this chapter is subject to administrative citation, at the discretion of the City, pursuant
to Chapter 1.03 of the Morro Bay City Code.
B. Public nuisance abatement.
1. Any commercial cannabis operation that is conducted in violation of any
provision of this chapter is hereby declared to constitute a public nuisance and, as
such, may be abated or enjoined from further operation, in accordance with the
procedures set forth in Chapter 8.14 of the Morro Bay City Code.
2. All costs to abate such public nuisance, including attorneys' fees and court costs,
shall be paid by the person causing the nuisance, including the commercial
cannabis operation permittee and the property owner where the nuisance is
occurring.
C. The remedies described in this section are not mutually exclusive. Pursuit of any one
remedy shall not preclude city from availing itself of any or all available administrative,
civil, or criminal remedies, at law or equity.
D. Any violation of the provisions of this chapter shall constitute a separate offense for each
and every day during which such violation is committed or continued.
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Sec. 5.50.190 - Service of notices.
Any notice required by this chapter is deemed issued and served upon the earliest date that
either: the notice is deposited in the United States mail, postage pre -paid, addressed to the most
recent mailing address provided to the City pursuant to the requirements of this chapter; or, the
date upon which personal service of the notice is provided to a responsible party.
Sec. 5.50.200 -Prohibitions.
A. Any commercial cannabis operation in violation of The Adult Use of Marijuana Act, The
Medicinal and Adult -Use of Cannabis Regulation and Safety Act, this chapter, or any
other applicable State law is expressly prohibited.
B. It is unlawful for any commercial cannabis operation in the City, or any agent, employee
or representative of such commercial cannabis operation, to permit any breach of peace
or any disturbance of public order or decorum by any tumultuous, riotous or disorderly
conduct at the site of the commercial cannabis operation.
Sec. 5.50.210 -Nonconforming use.
No use which purports to have engaged in a commercial cannabis activity of any nature prior to
the enactment of this chapter shall be deemed to have been a legally established use under the
provisions of this Code, or any other local ordinance, rule or regulation, and such use shall not be
entitled to claim legal nonconforming status.
Sec. 5.50.220 - Severability.
If any section, subsection, subdivision, sentence, clause, phrase, word, 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 of the City of Morro Bay hereby declare that they would have
adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word,
or portion thereof, irrespective of the fact that any one or more sections, subsections,
subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or
unconstitutional.
SECTION 4. CHAPTER 9.24 (SECONDHAND SMOKING REGULATIONS) OF
TITLE 9 OF THE MORRO BAY CITY CODE IS HEREBY AMENDED AS FOLLOWS:
1. Section 9.24.020 ("Definitions") shall have the following terms and definitions added:
• "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether
crude 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
cannabis. `Cannabis' does not include the mature stalks of the plant, fiber produced
from the stalks, oil or cake made from the seeds of the plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which
is incapable of germination.
011
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• "Electronic smoking device" means an electronic device that can be used to deliver
an inhaled dose of nicotine, or other substances (including but not limited to
cannabis), including any component, part or accessory of such a device, whether or
not sold separately. Includes any such device, whether manufactured, distributed,
marketed or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo,
an electronic pipe, an electronic hookah, or any other product name or descriptor.
2. The definitions for the following terms in Section 9.24.020 ("Definitions") are hereby
amended to read in their entirety as follows (new text is identified in bold & italics,
deleted text in stfike ,r.,.,,ug ):
• "Secondhand smoke" means smoke that is generated either from the burning end of a
lighted tobacco, weed, cannabis or plant product, or from an electronic smoking
device;; or, smoke that is exhaled. by a smoker, after inhaling or ingesting a lit
tobacco, weed, cannabis or plant product, or after use of an electronic smoking
device.
• "Smoke or smoking" means the carrying or holding of a lighted pipe, cigar, cigarette,
or any other lighted smoking product or equipment used to burn any tobacco
products, weed, plant, cannabis, or any other combustible substance. Smoking
includes emitting or exhaling the fumes of any pipe, cigar, cigarette, or any other
lighted smoking equipment, including an electronic smoking device, used for
burning any tobacco product, weed, plant, cannabis, or any other combustible
substance.
3. Section 9.24.030
"9.24.030 -Secondhand smoke generally.
A. For all purposes within the jurisdiction of the city, the nonconsensual exposure to
secondhand smoke and the uninvited presence of secondhand smoke on property in
violation of this chapter shall constitute a nuisance, as is further described by Title 8 of
the Morro Bay Municipal Code.
B. For all purposes within the jurisdiction of the city, no person shall cause secondhand
smoke to unreasonably interfere with the reasonable use and enjoyment of another
person's private residence."
4. Section 9.24.060 ("Places where smokii
In
"9.24.060 -Places where smoking may be permitted.
Except where prohibited by local, state or federal law, smoking may be permitted in the
following locations within the city notwithstanding Section 9.24.040:
A. Private residential and multifamily properties. T ius chapter does not preclude private
regulation of smoking on private residential and multifamily properties.
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B. Designated unenclosed areas ("smokers' outposts") provided that all of the following
conditions are met:
1. The area is located a reasonable distance away from any doorway or opening into
an enclosed area and any access way to a public place;
2. The area has a clearly marked perimeter;
3. The area is posted with one or more conspicuously displayed signs) identifying
the area as a designated outdoor smoking area pursuant to Section 9.24.060 of this
code;
4. Smoke is not permitted to enter adjacent areas in which smoking is prohibited by
this chapter, other law or by the owner, lessee or licensee of the adjacent property;
5. Appropriate ash cans) are placed in the smoking area and are maintained
regularly by the owner, operator or manager of the smoking area; and
6. No consistent complaints of secondhand smoke are filed with the city.
C. Smoking areas at public events which have been approved as part of the special event
permit or temporary use permit issued by the city.
D. Inside a private automobile when no minor child is present, except for as prohibited by
State law.
5. Section 9.24.120 ("Enforcement and penalties") is hereby amended to read in its entirety
as follows (new text is identified in bold m italics deleted text in sf,.,� l:
4.120 —Enforcement and penalties.
A. Any violation of the provisions of this chapter is punishable as a misdemeanor or an
infraction, at the discretion of the city prosecutor, pursuant to Chapter L16 of the
Morro Bay City Code; and, any violation of the provisions of this chapter is subject to
administrative citation, at the discretion of the City, pursuant to Chapter 1.03 of the
Morro Bay City Code. ^ viala4ian f t r
B. Punishment under this section shall not preclude punishment pursuant to Health and
Safety Code Section 13002, Penal Code Section 374.4, or any other law proscribing the
act of littering. Nothing in this section shall preclude any person from seeking any other
remedies, penalties or procedures provided by law.
C. Any violation of this chapter shall be deemed a public nuisance which may be abated
in accordance with the procedures set forth in Chapter 8.14 of the Morro Bay .City
Code. All costs to abate such public nuisance, including attorneys' fees and court costs,
shall be paid by the person causing the nuisance, including the nronerty owner where
the nuisance is occurring.
E. The remedies described in this section are not mutually exclusive. Pursuit of any one
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remedy shall not preclude city from availing use f of any or all available
administrative, civil, or criminal remedies, at law or equity.
F. Any violation of the provisions of this chapter shall constitute a separate offense for
each and every day during which such violation is committed or continued."
SECTION 5. SEVERABILITY. If any section, subsection, 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 section, subsection, sentence, clause, phrase, or portion thereof, irrespective
A the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions
thereof may be declared invalid or unconstitutional.
SECTION 6. CEQA. The City Council finds that this ordinance is not subject to the
California Environmental Quality Act ("CEQA") pursuant to both the exemption provided by
Section 26055(h) of the Business and Professions Code as well as Sections 15060(c)(3) and
15061(b)(3) of the CEQA Guidelines.
SECTION 7. EFFECTIVE DATE. This ordinance shall be in full force and effect
thirty (30) days after its passage.
SECTION 8. CERTIFICATION. The City Clerk shall certify to the adoption of this
ordinance, and shall cause the same to be posted and codified in the manner required by law.
INTRODUCED at a regular meeting the of the City Council of Morro Bay, held on the
N` day of October, 2017 by motion of Councilmember McPherson and seconded by
Councilmember Davis.
PASSED AND ADOPTED on the 14th day of November, 2017, by the following vote:
AYES: Irons, Davis, Headding, Makowetski, McPherson
NOES: None
ABSENT: None
ATTEST:
A*Vt451D
D kNA SWANSON, City Clerk
ONE, City
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I, Dana Swanson, City Clerk for the City of Morro Bay, hereby certify that the foregoing
ordinance was duly and regularly introduced at a meeting of the City Council on the 24th day of
October, 2017, and hereafter the said ordinance was duly and regularly adopted at a meeting of
the City Council on the 14th day of November, 2017, by the following vote, to wit:
AYES: Irons, Davis, Headding, Makowetski, McPherson
NOES: None
ABSTAIN: None
ABSENT: None
IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of
the City of Morro Bay, California, this 15th day of November, 2017.
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u^^ So +j
ity Clerk of the City of Morro Bay