City of Long Beach

Regulations for Marijuana Related Commercial Activity

Los Angeles County –> City of Long Beach

City Description

Long Beach is the 36th most populous city in the United States and the 7th most populous in California. It is located on the Pacific Coast of the United States, within the Greater Los Angeles area of Southern California. As of 2010, its population was 462,257. Long Beach is the second largest city in the Los Angeles metropolitan area, and the third largest in Southern California behind Los Angeles and San Diego.

The Port of Long Beach is the second busiest container port in the United States and is among the world’s largest shipping ports. The city also maintains a progressively declining oil industry with minor wells located both directly beneath the city as well as offshore. Manufacturing sectors include those in aircraft, automotive parts, electronic equipment, audiovisual equipment, petrochemicals, precision metals and home furnishings.

Long Beach lies in the southeastern corner of Los Angeles County and borders Orange County. Downtown Long Beach is approximately 22 miles (35 km) south of downtown Los Angeles, though the two cities share an official border for several miles.

Updated: 8/4/17

5.90.030 – Medical marijuana business license permit.

Except as otherwise set forth in this Chapter, it shall be unlawful for any person or entity to operate, in or upon any property, a Medical Marijuana Business without first obtaining all required State licenses and a business license or permits issued by the City. Each State license type available in the MMRSA is eligible to apply for a City Business License Permit. Medical Marijuana Business shall be considered a personal service type business in the City of Long Beach (as defined in section 21.15.2020) with respect to issuing a Business License Permit and setting application and license fees. Until the regulatory implementation of the MMRSA, the Medical Marijuana Business license permits shall be issued without regard to the fact the State license has not been issued. Failure to timely obtain required State licenses or permits shall be grounds for suspension or revocation of any permit or license issued by the City. Upon the regulatory implementation of the MMRSA, unless otherwise set forth in this Chapter, no person shall engage in commercial cannabis activity or in the activities of a Medical Marijuana Business without possessing all applicable State licenses and all applicable City permits and licenses. Revocation of a State license shall constitute grounds for the City to suspend or revoke any permit or license issued by the City.

A Medical Marijuana Business that is operating in compliance with this Chapter and other State and local laws on or before January 1, 2018, may continue its operations until its application for State licensure is approved or denied by the licensing authority.

A Medical Marijuana Business must at all times maintain liability insurance having aggregate policy limits in an amount not less than one million dollars ($1,000,000.00). The City may impose an annual business license fee no greater than one hundred fifty percent (150%) of the average business license fee the city charges for non-cannabis related personal service business. Failure to timely pay the annual business license fee shall be grounds for suspension or revocation of the business license. Applicants that previously paid an application fee pursuant to former Chapter 5.87 may, at the applicant’s discretion, have any un-refunded fee applied as credit against any fees applicable under this Section. All Medical Marijuana Businesses shall be subject to an annual regulatory inspection by the City to insure compliance with all of the applicable provisions of this Chapter and to confirm compliance with the business license permit issued by the City.

It shall be unlawful for the owner of a building to allow the use of any portion of a building by a Medical Marijuana Business unless the tenant has a valid business license permit, or has applied for and not been denied, a business license permit. Each owner of a building whose tenant is a Medical Marijuana Business License Permit applicant shall execute an acknowledgement that the Applicant has the owner’s permission and consent to operate a Medical Marijuana Business at the subject property.

Each Medical Marijuana Business shall designate a Community Relations Liaison (hereinafter, the “Liaison”), who shall be at least twenty-one (21) years of age; and shall provide the Liaison’s name to the City Manager. The Liaison shall receive all complaints received by the City Manager regarding the Medical Marijuana Dispensary, and make good faith attempts to promptly resolve all complaints. To address community complaints and concerns, the name and telephone number for the Liaison shall be made publicly available. Each Medical Marijuana Business Liaison is required to respond by phone or email within three (3) business days of contact by a city official concerning the Medical Marijuana Business. The name and contact information for Liaison of the medical marijuana business shall be conspicuously posted on the main entry doors to the business.

No pesticides or insecticides prohibited by federal, State, or local law for fertilization or production of edible produce may be used on any marijuana cultivated, produced or distributed by a Medical Marijuana Business. A Medical Marijuana Business shall comply with all applicable federal, State, and local laws regarding use and disposal of pesticides and fertilizers.

No Medical Marijuana Business may be operated in an area zoned exclusively for residential use, or be located within a one-thousand (1,000) foot radius of a public or private school (as defined in Health and Safety Code § 11362.768(h)) or public beach, or within a six hundred foot (600′) radius of a public park or public library. The distances specified in this subdivision shall be determined by the horizontal distance measured in a straight line from the property line of the school, park or library to the closest property line of the lot on which the Medical Marijuana Business is located, without regard to intervening structures.

All Medical Marijuana and Medical Marijuana Products intended for disposal shall be made unusable and unrecognizable prior to removal from the business, in compliance with all applicable laws. No Medical Marijuana Business may have a drive-through lane or drive up window and no Medical Marijuana may be dispensed from a drive-though lane or drive up window. No marijuana may be smoked, eaten, or otherwise consumed or ingested within the Medical Marijuana Business. All cultivation, production, distribution, possession, storage, display, sales or other distribution of marijuana shall occur only within an enclosed area of a medical marijuana business and shall not be visible from the exterior of the business. Consultations by medical professionals shall not be permitted at a Medical Marijuana Business nor as a permitted accessory use at a medical marijuana business. Each Medical Marijuana Business shall have an odor-absorbing ventilation and exhaust system to ensure that odor generated inside the premises is not detected outside the premises. Windows and roof hatches at the Medical Marijuana Business shall be secured so as to prevent unauthorized entry.

This Chapter shall not interfere with an employer’s rights and obligations to maintain a drug and alcohol free workplace or require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growth of cannabis in the workplace or affect the ability of employers to have policies prohibiting the use of cannabis by employees and prospective employees, or prevent employers from complying with local, State, or federal law.

( Measure MM § 4, 11-8-2016)

5.90.040 – Security.

Every Medical Marijuana Business shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing medical cannabis or medical cannabis products and theft of medical cannabis or medical cannabis products. These security measures, as appropriate, shall include, but not be limited to, the following: (a) Preventing individuals from remaining on the premises if they are not engaging in activity expressly related to the operations of the business; (b) Establishing limited access areas accessible only to authorized personnel; (c) Storing all finished medical cannabis and medical cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes, samples, or immediate sale.

Each Medical Marijuana Business shall install and maintain a fully operational digital video surveillance and camera recording system that monitors no less than the front and rear of the Property, all points of ingress and egress at the business, all points of sale within the business, all areas within the business where medical marijuana products are displayed for sale, and all limited access areas within the facility. The video and surveillance system shall, at a minimum, meet the following requirements: (a) Capture a full view of the public rights-of-way and any parking lot under the control of the medical marijuana business; (b) Be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the exterior of the property; (c) Record and maintain video for a minimum of thirty (30) days. Video surveillance and recording records shall be held in confidence by all employees and for legitimate law enforcement activity to resolve criminal activity; (d) Licensees are responsible for ensuring that all video or surveillance equipment is properly functioning and maintained, so that playback quality is suitable for viewing and the equipment is capturing the identity of all individuals and activities in the monitored areas; (e) At each point of sale location, camera coverage must enable recording of the customer(s) and employee’s facial features with sufficient clarity to determine identity; (f) The system shall be capable of recording all monitored areas in any lighting conditions and must be housed in a designated, locked, and secured room or other enclosure with access limited to authorized employees. Licensees must keep a current list of all authorized employees and service personnel who have access to the surveillance system and/or room on the licensed premises; (g) A sign shall be posted in a conspicuous place near each monitored location on the interior or exterior of the premises which shall be not less than twelve inches (12″) wide and twelve inches (12″) long, composed of letters not less than one inch (1″) in height, stating “All Activities Monitored by Video Camera” or “These Premises are Being Digitally Recorded”, or otherwise advising all persons entering the premises that a video surveillance and camera recording system is in operation at the facility and recording all activity as provided in this Section; (h) All exterior camera views must be continuously recorded twenty-four (24) hours a day and all interior cameras views shall be recorded during all hours that the facility is open for business.

The medical marijuana business shall install and use a safe for storage of any processed marijuana and cash on the property when the business is closed to the public. The safe shall be incorporated into the building structure or securely attached thereto. For medical marijuana infused products that must be kept refrigerated or frozen, the business shall lock the refrigerated container or freezer in place of using a safe so long as the container is affixed to the building structure.

The medical marijuana business shall install and use a fire and burglar alarm system that is monitored by a company that is staffed twenty-four hours (24) a day, seven (7) days a week. The security plan submitted to the City shall identify the company monitoring the alarm, including contact information, and the City shall be updated within seventy-two (72) hours of any change of monitoring company. A medical marijuana business engaged in retail sales shall retain and maintain a security guard or patrol, licensed by the State of California, generally located at an indoor guard station, during all hours of operation.

( Measure MM § 4, 11-8-2016)

5.90.050 – Persons prohibited as permittees and business managers.

It shall be unlawful for any of the following persons to have an ownership interest or a managerial responsibility in a Medical Marijuana Business, and no license or permit may be issued to or held by, and no Medical Marijuana Business shall be managed by: (a) Any person until all required fees have been paid; or (b) Any person who has been convicted within the previous ten (10) years of any violent or serious felony as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit or embezzlement or who is currently on parole or probation for the sale or distribution of a controlled substance; or (c) Any person who is under twenty-one (21) years of age; or (d) Any person who operates or manages a Medical Marijuana Business contrary to the provisions of this Chapter, or conditions imposed on land use or license approvals, or contrary to the terms of the plans submitted with the permit application, or amended as permitted by this Chapter; or (e) A licensed physician making patient recommendations; or (f) A person licensed and permitted to operate pursuant to this Chapter who, while lawfully operating, or who, at the time of application, has failed to remedy an outstanding delinquency for City taxes or fees owed, or an outstanding delinquent judgment owed to the City; or (g) A sheriff, deputy, police officer, or prosecuting officer, or an officer or employee of the State or City of Long Beach; or (h) Applicants or entities (including management Employees) that have a previous record of violating federal or state laws relating to workplace safety, wages and compensation, employee discrimination, or union activity.

( Measure MM § 4, 11-8-2016)

Business License Tax.
Every Marijuana Business whether organized as not-for-profit or for-profit, shall pay a business
license tax in accordance with Chapter 3.80 of this Code and this Section. For the purposes of this Section, a Marijuana Business is considered to be a business as that term is defined in Long Beach Municipal Code Section 3.80.133. For the purposes of this Section, a Marijuana Business is not considered to be a religious or charitable organization as defined in Long Beach Municipal Code Section 3.80.320 (Exemption – Religious and charitable organizations). The business tax set forth in this section is a general tax, the revenues from which shall be deposited into the City’s general fund and may be expended for any valid public purpose of the City.

3.80.261 – Marijuana Businesses.

Business License Tax Rates.
Every medical marijuana business engaged in marijuana retail sale or delivery within the City shall pay a business tax at a rate of up to eight percent (8%) of gross receipts. The tax shall be initially set at a rate of six percent (6%). The tax under this paragraph shall not be increased on medical marijuana businesses unless and until the City Council by ordinance takes action, and the tax rate shall not exceed eight percent (8%) of gross receipts.

2. Every non-medical marijuana business engaged in marijuana retail sale or delivery within the City
shall pay a business tax at a rate of up to twelve percent (12%) of gross receipts. The tax shall be
initially set at a rate of eight percent (8%). The tax under this paragraph shall not be increased on
non-medical marijuana businesses unless and until the City Council by ordinance takes action, and
the tax rate shall not exceed twelve percent (12%) of gross receipts.

3. If a marijuana business is engaged in retail sales or delivery of both medical marijuana and a nonmedical marijuana, it shall pay the business tax set forth in paragraph C.2., unless the marijuana
business identifies to the City, by reasonable and verifiable standards, the portions of its retail sales activities that are tied to medical marijuana and those that are tied to non-medical marijuana, through the marijuana business’ books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not specifically created and maintained for tax purposes. The marijuana business has the burden of proving the proper apportionment of taxes under this paragraph C.3.

4. Every marijuana business, whether medical or non-medical, that is engaged in marijuana
distribution, transport, processing, or testing within the City, shall pay business tax at a rate of up
to eight percent (8%) of gross receipts. The tax shall be initially set at a rate of six percent (6%). The tax under this section shall not be increased on marijuana businesses unless and until the City
Council by ordinance takes action, and the tax rate shall not exceed eight percent (8%) of gross
receipts. If a marijuana business that is engaged in marijuana distribution, transport, processing, or
testing, is also engaged in marijuana retail sale or delivery of the same marijuana and marijuana
products, then it shall pay the business taxes set forth in paragraphs C.1. or C.2., as applicable, for
retail sale or delivery of any marijuana or marijuana products and is not required to pay the
business taxes set forth in this paragraph for marijuana distribution, transport, processing, or
testing for the same marijuana and marijuana products. The marijuana business has the burden of
proving that the marijuana or marijuana products involved in distribution, transport, processing, or
testing are the same.

5. In addition to the taxes set forth in paragraphs C.1., C.2., and C.4., every marijuana business,
whether medical or non-medical, engaged in marijuana cultivation shall pay a tax of up to fifteen
dollars ($15.00) per square foot under cultivation. The tax shall initially be set at a rate of twelve
dollars ($12.00) per square foot under cultivation. The City Council may by ordinance increase any
such tax rate from time to time, not to exceed the maximum tax rate of fifteen dollars ($15.00) per
square foot under cultivation.

6. Notwithstanding the maximum tax rates imposed in paragraphs C.1., C.2., C.4. and C.5., the City
Council may in its discretion at any time by ordinance implement a lower tax rate, as defined in
such ordinance, subject to the maximum rates set forth in C.1., C.2., C.4. and C.5. City Council may subsequently in its discretion at any time by ordinance implement a higher tax rate, subject to the
maximum rates set forth in C.1., C.2., C.4. and C.5., and such increase does not constitute a tax
increase for which voter approval is required Article XIII C of the California Constitution.

7. All marijuana businesses shall pay a minimum tax of one thousand dollars ($1,000.00) annually.

D. Modification, Repeal or Amendment. The City Council may repeal the ordinance codified in this Section, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the City Council repeals said ordinance or any provision of this Section, it may subsequently reenact it without voter approval, as long as the reenacted ordinance or Section does not result in an increase in the tax or taxes beyond the maximum rate or methodology imposed herein.

E. Annual Adjustment. The taxes imposed by paragraph C.5 shall be adjusted annually by the Director of Financial Management. Beginning on October 1, 2018, and on October 1 of each succeeding year thereafter, the amount of each tax imposed by paragraph C.5 shall be adjusted equivalent to the most recent change in the annual average of the Consumer Price Index (“CPI”) for all urban consumers in the Los Angeles-Riverside-Orange County areas as published by the United States Government Bureau of Labor Statistics; however no adjustment shall decrease any tax imposed by paragraph C.5. For the purposes of calculating the annual adjustment factor under paragraph C.5, the base year shall be that year ending with December 31, 2016. Rates shall next be adjusted on October 1, 2018, and annually thereafter, based on the annually calculated change from the base year. The October 1, 2018, adjustment shall be the change in the average CPI for the year ending December 31, 2017, compared to the base year ending December 31, 2016.

F. Administration. The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer this Section including, but not limited to regulations allowing Marijuana Businesses to report and or remit taxes more or less frequently than monthly. The City Manager shall provide no less than annually a report to the City Council detailing annual expenditures.

G. Reporting and Remittance. In order to aid in the City’s collection of taxes due under this Section and to ensure that all Marijuana Businesses are taxed consistently to the best of the City’s ability, beginning as set forth in Section K, below, and monthly thereafter, each Marijuana Business shall report to the City any Gross Receipts received during the reporting period and shall likewise remit to the City the taxes due and owing during said period. For purposes of this Section, taxes shall begin to accrue on the date that a person or entity first receives a business license or other permit to operate as a Marijuana Business or Cultivation Site. Square Footage payments shall be made annually at the beginning of the calendar yearand should be based on the square footage that the marijuana business is authorized to cultivate by either a City permit or license, or by a state license in the absence of a City permit or license, not deducting for unutilized square footage, pro-rated based on the number of months of operation.

H. Delinquent date—Penalties. Any individual or entity who fails to pay the taxes required by this Section within thirty (30) days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to twenty-five percent (25%) of the total amount due. Additional penalties will be assessed in the following manner: ten percent (10%) shall be added on the first day of each calendar month following the month of the imposition of the twenty-five percent (25%) penalty if the tax remains unpaid; up to a maximum of one hundred percent (100%) of the tax payable on the due date. Receipt of the tax payment in the office shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.

I. Records Inspection. Whenever it is necessary to examine any books or records, including tax returns, of any Marijuana Business or Cultivation Site in the City to ascertain the amount of any tax due pursuant to this Section, the City shall have the power and authority to examine such necessary books and records at any reasonable time including, but not limited to, during normal business hours. Records must be maintained for no less than seven (7) years.

J. Suspension, Revocation and Appeal. The provisions of Sections 3.80.429.1 (Suspension or Revocation) and 3.80.429.5 (Appeal of License Revocation) shall apply in the case of Marijuana Businesses or Cultivation Sites governed by this Section.

K. Application of Provisions. No business license permit issued under the provisions of this Code, or the payment of any tax required under the provisions of this Code shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this Section implies or authorizes that any activity connected with the distribution or possession of cannabis is legal unless otherwise authorized and allowed by California and federal law. Nothing in this Section shall be applied or construed as authorizing the sale of marijuana.

L. Operative Date. This ordinance establishing a marijuana business tax shall only become operative: 1) if Chapter 5.89 of the Long Beach Municipal Code (banning marijuana businesses in the City of Long Beach) is repealed; and 2) if a regulatory scheme to permit marijuana businesses within the City is adopted. The tax shall become effective on the effective date of the regulatory ordinance as provided by law.

( Measure MA § 2, 11-8-2016; Measure MM § 2, 11-6-2016; Measure A , 4-8-2014, e􀃗. 5-23-2014)

CULTIVATION

APPROVED

5.90.090 – Medical marijuana cultivation operating conditions and restrictions.

Except as otherwise provided for in this Chapter, it shall be unlawful to operate a Medical Marijuana Business or to grow medical marijuana outside of an enclosed building. All Medical Marijuana Cultivation Business License Permits shall be issued for a specific fixed location within an enclosed building. This Section does not apply to a qualified patient cultivating marijuana pursuant to Health and Safety Code § 11362.5 or a primary caregiver cultivating marijuana pursuant to § 11362.5 if he or she cultivates marijuana exclusively for the personal medical use of no more than five (5) specified qualified patients for whom he or she is the primary caregiver within the meaning of Health and Safety Code § 11362.7 and does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Health and Safety Code § 11362.765.

Only cultivation locations intending to be compliant with MMRSA Type 1A, 2A, 3A and 4 State Cultivation licenses shall be licensed and permitted. Each applicant for a Medical Marijuana Cultivation Business License Permit shall specifically identify which State Cultivation License will be applicable to that application. The maximum cultivation canopy shall be limited by the license type specified in the MMRSA.

A Medical Marijuana Dispensary may operate a Medical Marijuana Cultivation Facility either on its premises or offsite, but must obtain a separate business license permit for each Medical Marijuana Cultivation Facility it operates in the City. No Medical Marijuana Dispensary may operate more Medical Marijuana Cultivation Facilities than are permitted by the MMRSA.

Upon regulatory implementation of the MMRSA, The Medical Marijuana Cultivation licensee shall send all medical cannabis and medical cannabis products cultivated to a MMRSA Type 11 qualified licensee for quality assurance and inspection and for a batch testing to a MMRSA Type 8 licensee prior to distribution in a manner consistent with the MMRSA requirements. Until regulatory implementation of the MMRSA, the Medical Marijuana Cultivation licensee shall send medical cannabis and medical cannabis products cultivated for batch testing to a testing laboratory which operates in compliance with Section 5.90.120.

Each Medical Marijuana Cultivation Facility shall maintain and operate an electronic point of sale plant tracking system compliant with the minimum requirements of the MMRSA at all times. Each Medical Marijuana Cultivator shall package or seal all medical cannabis in tamper-evident packaging and use a unique identifier, such as a batch and lot number or bar code, to identify and track the medical cannabis. All Medical Marijuana shall be labeled as required by Health and Safety Code § 19346. All packaging and sealing shall be completed prior to delivery or transportation.

( Measure MM § 4, 11-8-2016)

MANUFACTURING

APPROVED

5.90.100 – Medical marijuana manufacturing operating conditions and restrictions.

Medical Marijuana Manufacturing Facilities must designate whether they will apply for or have obtained either a MMRSA Type 6 “Manufacturing level 1” State License (nonvolatile solvents) or a MMRSA Type 7 “Manufacturing level 2” State License (volatile solvents) when submitting a Business License application. Medical Marijuana Manufacturing Facilities must comply with sanitation standards equivalent to the California Retail Food Code (Part 7 (commencing with Section 113700) of Division 104 of the Health and Safety Code) for food preparation, storage, handling and sale of edible medical cannabis products. For purposes of this Chapter edible medical cannabis products are deemed to be unadulterated food products.

Medical Marijuana Manufacturing Facilities shall only produce, distribute, provide, donate or sell non-potentially hazardous food, as established by the state department of Public Health pursuant to § 114365.35 of the Health and Safety Code. All edible medical marijuana products shall be packaged at the Medical Marijuana Facility prior to distribution or transportation from the Facility. Medical Marijuana products shall be labeled and packaged in a tamper-evident package and have a unique identifier, such as a batch and lot number or bar code, to identify and track the Medical Marijuana. Labels and packages of Medical Marijuana products shall be compliant with the packaging and labeling requirements set forth in by Health and Safety Code § 19346.

The production of any medical marijuana-infused product shall meet all requirements of a retail food establishment as set forth in Chapter 8.45 of this Code. Except, as it relates only to enforcement of Chapter 8.45 of this Code, the fact the facility is engaged in the production of Marijuana related product shall not be deemed a violation of any Federal Food statutes, orders, ordinances, quarantines, rules, regulations, or directives relating to the public health.

( Measure MM § 4, 11-8-2016)

RETAIL

APPROVED

5.90.060 – Medical marijuana dispensary operating conditions and restrictions.

Every person and entity operating as a Medical Marijuana Dispensary in the City shall comply with the following operating conditions and restrictions. No Medical Marijuana Dispensary may operate within the City of Long Beach without meeting the following conditions:

A Medical Marijuana Dispensary shall not be located within a one thousand foot (1,000′) radius of any other Medical Marijuana Dispensary.

A sign shall be posted in a conspicuous location inside each Property advising: (a) It is a violation of State Law to engage in the sale of marijuana or the diversion of marijuana for non-medical purposes; (b) The use of marijuana may impair a person’s ability to drive a motor vehicle or operate heavy machinery; (c) Loitering at the location of a Medical Marijuana Business for an illegal purpose is prohibited by Penal Code § 647(h); (d) This Medical Marijuana Business is licensed in accordance with the laws of the City of Long Beach; (e) Your membership will be terminated if you engage in the illegal sale or diversion of Medical Marijuana.

Representative samples of Medical Marijuana distributed by the Business shall be analyzed by an independent laboratory to ensure that they are free of harmful pesticides and other contaminants regulated under local, state or federal law.

No person, other than a patient, caregiver, licensee, employee, or a contractor shall be in the medical marijuana dispensary room. No patient shall be allowed entry into the medical marijuana dispensary room without showing a valid State issued picture Driver’s License or Identification. A Medical Marijuana Dispensary may distribute, dispense, deliver or transport medical marijuana only in accordance with this Chapter and State law.

The number of licensed and permitted Medical Marijuana Dispensaries shall be limited to not less than one (1) Medical Marijuana Dispensary business for every eighteen thousand (18,000) residents in the City of Long Beach or not more than one (1) Medical Marijuana Dispensary business for every fifteen thousand (15,000) residents in the City of Long Beach. The population of the City shall be based on the official census population estimate as periodically updated by the US Department of Commerce, United States Census Bureau. The City Council may increase the number of licensed and permitted medical marijuana dispensaries pursuant to this Chapter but may not reduce them below the thresholds set forth herein. The City Manager shall issue the maximum number of licenses permitted by this Section unless otherwise directed by the City Council.

( Measure MM § 4, 11-8-2016)

5.90.070 – Priority of medical marijuana dispensaries.

A Medical Marijuana Dispensary Applicant that: (1) was successful in the September 2010 permit lottery conducted by the City of Long Beach under former Chapter 5.87; (2) was allowed by the City Council to operate after February 14, 2012 pursuant to section 5.89.055 of this Chapter; and (3) no longer has the right to occupy the same location that it had occupied on February 14, 2012, shall have the priority right to apply for a Medical Marijuana Dispensary Business License Permit. The City Manager shall verify, within two business days of a request, whether the Applicant qualifies for such priority and, if so, shall issue a letter to potential landlords stating that the Applicant has priority for a license to operate a Medical Marijuana Dispensary in the City of Long Beach.

Medical Marijuana Dispensary Applicants that: (1) were successful in the September 2010 permit lottery conducted by the City of Long Beach under former Chapter 5.87; and (2) were allowed by the City Council to operate after February 14, 2012 pursuant to former section 5.89.055 of this Chapter; and (3) have the right to occupy the same location(s) that it had occupied on February 14, 2012 (“Priority Group 1” applicants), and Applicants issued a landlord letter pursuant to this Section (“Priority Group 2” applicants), who timely submit qualifying applications, shall be given priority over all other applicants for License Permit approval.

Applicants entitled to a license permit or to priority under this subsection shall submit an application to the City Manager no later than six months after the City first accepts applications for Medical Marijuana Dispensary Business License Permits, or shall lose the entitlement or priority under this subsection. Priority Group 1 applicants shall be awarded available Dispensary Business License Permits first, upon determination that such application is complete. Priority Group 2 applicants shall be awarded available Dispensary Business License Permits next. All other applicants will next be evaluated for priority based on criteria set forth in a Priority Point System established pursuant to this Section.

All applications evaluated under the Priority Point System will be ranked from the most to the least points. Applicants for any available Medical Marijuana Business License Permit shall be awarded License Permits based upon this ranking using the following procedure, with eligibility reassessed after each License Permit is awarded: (1) Remaining eligible Applicants with the most number of points pursuant to this Section in descending order from highest points to lowest points until all available License Permits are awarded; (2) If there are two or more eligible applicants with the same number of points those applicants shall be grouped together and, if there are more eligible applicants in this group than the remaining number of available License Permits, the City of Long Beach shall utilize a public lottery to determine which applicant(s) is/are awarded a License Permit; (3) If there are more available license permits than eligible applicants for this group, but two or more applicants are within one-thousand (1,000) feet of each other, the City of Long Beach shall utilize a public lottery to determine which applicant is awarded a License Permit; (4) If, after this public lottery the number of eligible applicants exceeds the number of available License Permits to be awarded, the process shall be repeated until all available License Permits are awarded.

The criteria for Point System shall be as follows:

Suitability of the proposed property: (i) Applicant demonstrates proposed location exceeds all buffer zones established in this Chapter by at least five hundred feet (500′) (1 point); (ii) Proposed property possesses air scrubbers or a filtration system capable of eliminating odors from escaping the building or commitment to do so before operating (1 point); (iii) Proposed property is located within one thousand feet (1,000′) of a public transportation hub, stop, or station (1 point).

Suitability of security plan: (i) The Applicant’s security plan includes the presence of security personnel on premises or patrolling the premises twenty-four (24) hours per day (1 point); (ii) The Applicant’s security plan demonstrates a method to track and monitor inventory so as to prevent theft or diversion of marijuana (1 point); (iii) The Applicant’s security plan describes the enclosed, locked facility that will be used to secure or store marijuana when the location is both open and closed for business, and the steps taken to ensure marijuana is not visible to the public (1 point); (iv) The Applicant’s security plan includes measures to prevent the diversion of marijuana to persons under the age of eighteen (18) (1 point); (v) Applicant demonstrates security measures exceeding the requirements of this Chapter, including but not limited to brick or concrete construction or additional fire and/or security alarms (1 point);
Suitability of business plan and financial record keeping: (i) The Applicant describes a staffing plan that will provide and ensure safe dispensing, adequate security, theft prevention, and the maintenance of confidential information (1 point); (ii) Applicant provides an operations manual that demonstrates compliance with this Chapter (1 point);

Criminal history: (i) No Management Employee of an applicant has any felony convictions (1 point); (ii) Applicants without any pending criminal complaint(s) (1 point); (iii) The applicant certifies, as a condition of maintaining the business license permit, that it will not employ any person with any type of violent or serious felony conviction(s) as specified in Sections 667.5 and 1192.7 of the Penal Code or any felony conviction involving fraud, deceit or embezzlement (1 point); (iv) Applicants certify as a condition of maintaining the business license permit that they will not employ as managers or employees any person with any narcotic drug related misdemeanor conviction (1 point);

Regulatory compliance history: (i) Applicants have not had a permit or license revoked by the City of Long Beach (1 point); (ii) Applicants have not had administrative penalties assessed against their business (1 point); Applicants who had administrative penalties assessed against their business while Chapter 5.87 was effective (-1 point); Community service: Applicants demonstrate involvement in the community, other non-profit association, or neighborhood association (1 point);

Labor Relations: (i) Applicant is party to a labor peace agreement or collective bargaining agreement with a bona fide labor organization (1 point;) (ii) Applicant pays a living wage (at least two hundred percent (200%) of the Federal Poverty Level for a family of two) (1 point); (iii) Applicant provides employer-paid health insurance benefits for its employees (1 point); (iv) Applicant provides equipment, standards and procedures for the safe operation of its facilities and engages employees on best practices (1 point); (v) Applicant provides training and educational opportunities for employee development (1 point); (vi) Applicant or entity has no previous record of violating federal or state laws relating to workplace safety, wages and compensation, discrimination, or union activity (1 point).

( Measure MM § 4, 11-8-2016)

5.90.110 – Medical marijuana distributor operating conditions and restrictions.

Upon regulatory implementation of the MMRSA, all licensees holding medical marijuana cultivation or medical marijuana manufacturing licenses and permits shall send all medical cannabis and medical cannabis products cultivated or manufactured to a distributor, for quality assurance and inspection by the Medical Marijuana Distributor and for a batch testing by a Medical Marijuana Testing Laboratory prior to distribution to a dispensary. Those licensees holding a State issued Type 10A Dispensary license in addition to a medical marijuana cultivation license or a medical marijuana manufacturing license shall, upon State regulatory implementation of the MMRSA, send all medical cannabis and medical cannabis products to a Medical Marijuana Distributor for presale inspection and for a batch testing by a Medical Marijuana Testing Laboratory prior to dispensing any product.

Upon receipt of medical cannabis or medical cannabis products by a holder of a medical marijuana cultivation or medical marijuana manufacturing license, the Medical Marijuana Distributor shall process, test and distribute Medical Marijuana and Medical Marijuana products consistent with minimum requirements of the MMRSA.

( Measure MM § 4, 11-8-2016)

5.90.120 – Laboratory testing and testing laboratories.

For the purposes of testing medical cannabis or medical cannabis products, licensees shall use a testing laboratory that has adopted a standard operating procedure using methods consistent with general requirements for the competence of testing and calibration activities, including sampling, using standard methods established by the International Organization for Standardization, specifically ISO/IEC 17020 and ISO/IEC 17025, or any other standard set forth by the State, to test medical cannabis and medical cannabis products that are approved by an accrediting body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement.

Until such time as the State is issuing MMRSA Type 8 Testing Laboratory licenses, the laboratory testing set forth in this Chapter may be conducted by a testing laboratory that is otherwise compliant with the requirements set forth herein. A Testing Laboratory may apply for a business license permit application for the specific purpose of testing medical marijuana pursuant to the requirements of this Chapter and shall not be denied a business license permit on the basis it has not been issued a MMRSA Type 8 Testing Laboratory license, however the licensee shall apply for a State issued MMRSA Type 8 Testing Laboratory license within six (6) months from notice that the State is issuing such license. Denial of a MMRSA Type 8 license shall result in the revocation of the Medical Marijuana Testing Laboratory License Permit.

Medical marijuana shall be tested for concentration, pesticides, mold and other contaminants. Medical marijuana extracts shall be tested for concentration and purity of product. All testing shall be compliant with the MMRSA standards.

Except as provided in this Chapter, a licensed testing laboratory shall not acquire or receive medical cannabis or medical cannabis products except from a licensed facility in accordance with this Chapter, and shall not distribute, sell, deliver, transfer, transport, or dispense medical cannabis or medical cannabis products, from which the medical cannabis or medical cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. A licensed testing laboratory may receive and test samples of medical cannabis or medical cannabis products from a qualified patient or primary caregiver only if he or she presents his or her valid recommendation for cannabis for medical purposes from a physician. A licensed testing laboratory shall not certify samples from a qualified patient or caregiver for resale or transfer to another party or licensee. All tests performed by a licensed testing laboratory for a qualified patient or caregiver shall be recorded with the name of the qualified patient or caregiver and the amount of medical cannabis or medical cannabis product received.

( Measure MM § 4, 11-8-2016)

5.90.130 – Reporting requirements.

A Medical Marijuana Business holding a Business License Permit shall report to the City Manager or his or her designee each of the following within the time specified; provided that if no time is specified, such a report shall be provided within fifteen (15) days of the triggering event: (1) The transfer or change of ownership interest, business manager, or in the permit application at least thirty (30) days before the transfer or change; (2) Sales and taxable transactions and file sales and use tax reports to the City quarterly; (3) A conviction of any disqualifying crime by any applicant of a Medical Marijuana Business.

( Measure MM § 4, 11-8-2016)

5.90.140 – Transportation and delivery.

It shall be unlawful for any person to transport medical marijuana, except as specifically allowed by this Chapter and State law. Transport or delivery activities shall comply with all of the following:
All medical marijuana-infused products are hand packaged, sealed and labeled, and the products stored in closed containers that are labeled as provided in this Section. All medical marijuana in a usable form for medicinal use is packaged and stored in closed containers that are labeled as provided in this Section. Each container used to transport or deliver medical marijuana is labeled with the amount of medical marijuana or medical marijuana-infused products, or the number and size of the plants, in the container. The label shall include the name and address of the medical marijuana business that the medical marijuana is being transported or delivered from and the name and address of the medical marijuana business or individual that the medical marijuana is being transported to. The label shall be shown to any law enforcement officer who requests to see the label. An individual transporting medical marijuana items must have a valid California Driver’s License and shall use a vehicle for transport that is insured at or above the legal requirement in California; capable of securing (locking) the medical marijuana during transportation; and capable of being temperature controlled if perishable medical marijuana is being transported. A permitted medical marijuana dispensary may deliver medical marijuana only to a residence of a qualified patient or caregiver. For purposes of this rule, “residence” means a dwelling such as a house or apartment but does not include a dormitory, hotel, motel, bed and breakfast or similar commercial business.

The medical marijuana dispensary must specify home delivery services in its application for a business license and the approval for the business license shall set forth conditions related to the home delivery service. The Dispensary shall at all times maintain an electronic point of sale inventory tracking and sales software system that provides for the creation of the transportation manifests required by the MMRSA and the real time location tracking of the employee providing the delivery. A bona fide order must be received by a permitted dispensary from the individual requesting delivery, before 8:00 p.m. on the day the delivery is requested. The bona fide order must contain: (a) The individual requestor’s name, date of birth, the date delivery is requested and the address of the residence where the individual would like the items delivered; (b) A document that describes the marijuana proposed for delivery and the amounts; and (c) A written statement that the marijuana is for medical use only and not for the purpose of resale.
Deliveries must be made before 9:00 p.m. local time and may not be made between the hours of 9:00 p.m. and 8:00 a.m. local time. At the time of delivery, the individual performing delivery must check the identification of the individual to whom delivery is being made in order to determine that it is the same individual who submitted the bona fide order, that the individual is eighteen (18) years of age or older, and must require the individual to sign a document indicating the medical marijuana products were received. A medical marijuana dispensary may not deliver medical marijuana to an individual who is visibly intoxicated at the time of delivery, or who cannot provide a valid medical marijuana recommendation from a licensed medical doctor authorized by State law to issue recommendations, or to an individual who fails to provide a valid government issued identification verifying that the person is eighteen (18) years of age or older. Deliveries may not be made more than once per day to the same physical address or to the same individual. Marijuana items delivered to an individual’s residence must: (a) Comply with all packaging and labeling regulations established by this Chapter or the State of California; (b) Be placed in a larger delivery receptacle that has a label that reads: “Contains marijuana: Signature of person 18 years of age or older required for delivery.” All marijuana items must be kept in a lock-box securely affixed inside the delivery vehicle. A manifest must be created for each delivery or series of deliveries and the individual doing the delivery may not make any unnecessary stops between deliveries or deviate substantially from the manifest route.

Documentation Requirements. A medical marijuana dispensary must document the following regarding deliveries: The bona fide order and the date and time it was received by the retailer; The date and time the medical marijuana items were delivered; A description of the medical marijuana that was delivered, including the weight or volume and price paid by the consumer; Who delivered the medical marijuana items; and the name of the individual to whom the delivery was made and the delivery address; A dispensary is required to maintain the name of an individual to whom a delivery was made for eighteen (18) months from the date of delivery.

Home delivery or transportation services originating from within the City of Long Beach city limits, but not from a person having a valid medical Marijuana Business License are strictly prohibited. Home delivery or transportation services from outside the City of Long Beach city limits, or from a person or entity who does not have a valid Medical Marijuana Business License issued by the City of Long Beach are strictly prohibited.

( Measure MM § 4, 11-8-2016)

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