Agenda packet — Bell Gardens City Council, May 8, 2023 (part 1 of 3)

CI TY OF BELL GARDENS

C IT Y C O UNC IL / S UC C E S S O R AG E NC Y T O T HE C O M M UNIT Y

D E V E L O P M E NT C O M M I S S I O N

J O I NT M E E T ING
M O ND AY, M AY 8, 2023, 6:00 P M

AG E ND A
L O C AT IO N: C I T Y C O UNC I L C HAM B E RS, 7100 G ARF IE L D AV E NUE, B E L L G ARD E NS, C A 90201 T he meeting will be held at B ell Gardens City Hall in the Council Chambers. T he public may attend the meeting in-person or virtually as instructed below. You may view the meeting live on the City's website at https://www.bellgardens.org/i-want-to/watch-city-council-meetings .

AC C E S S IB I L IT Y: I f requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by S ection 202 of the A mericans with D isabilities A ct of 1990 (42 U.S .C . S ec. 12132), and the f ederal rules and regulations adopted in implementation thereof . Any person who requires a disability-related modif ication or accommodation, in order to observe and/or of f er public comment may request such reasonable modification, accommodation, aid, or service by contacting the City C lerk's of f ice by telephone at 562-806-7704 or via email to CityC [email protected] no later than 72-hours bef ore the scheduled meeting.

P UB L IC PART I C IPAT IO N: T he members of the public may address the City Council / Agency Members on any item listed on the agenda or on matters which are not listed on the agenda but are within the subject matter jurisdiction of the C ity Council / S uccessor Agency. P ublic comments are limited to three (3) minutes per person for each designated public comment period(s). P ublic comments for non- agenda items will be limited to a total of 30 minutes. P ublic comments can be made by any of the following ways:

I N-P E RS O N: Members of the public can provide in-person comments at the podium in the Council C hamber. P ublic comments are limited to three (3) minutes f or each designated public comment period(s) per speaker, unless a different time is announced by the presiding chair. Speakers who wish to address the City C ouncil / Agency Members should do so by submitting a "Public Comment Card" card by 5:00 p.m. for C losed Session items and by 6:00 p.m. f or all other designated public comment periods as listed.

B Y T E L E P HO NE: P hone Number: (669)900-9128 Webinar I D : 813 3236 4343# Passcode: 2021# To address the C ity C ouncil press *9 to raise your hand then *6 to unmute yourself when instructed.

V IRT UAL LY L I V E : Members of the public may participate via Z oom by https://zoom.us/join and entering the Z oom Meeting I D: 813 3236 4343 Passcode: 2021
C omments may also be made via the Z oom app by using the "R aise Hand" feature when it is your turn to speak the host will unmute you. C omments will not be accepted in the QandA Chat f unction of the zoom app.

WRIT T E N C O M M E NT S: Public comments may be emailed to Public [email protected] or mailed to: City Clerk's Of f ice, 7100 Garf ield Ave., B ell Gardens, C A 90201. To ensure distribution to the members of the City Council / A gency Members prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. T hose comments, as well as any comments 1 received after, will be distributed to the members of the C ity C ouncil / S uccessor A gency and will be part of the official public record of this meeting.

F or more information, you may contact the C ity Clerk's of f ice during regular business hours 7:30 a.m. to 6:00 p.m., Monday through T hursday at (562) 806-7704.

C AL L T O O RD E R

INV O C AT I O N

P L E D G E O F AL L E G IANC E

RO L L C AL L O F C I T Y C O UNC IL M E M B E RS / S UC C E S S O R AG E NC Y T O T HE C O M M UNI T Y

D E V E L O P M E NT C O M M IS S IO N M E M B E RS
Marco B arcena, C ouncil Member / Agency Member
J orgel C havez, C ouncil Member / Agency Member
Maria Pulido, C ouncil Member / Agency Member
F rancis De L eon S anchez, Mayor Pro Tem / Vice C hair A lejandra C ortez, Mayor / C hair

P RE S E NTAT IO NS
•RE C O G NI T I O N O F RE S ID E NT S AT TAI NM E NT O F U.S . C IT IZE NS HIP •NAT IO NAL S M AL L B US INE S S M O NT H P RO C L AM AT IO N •NAT IO NAL S K IL L E D NURS ING C ARE WE E K - M AY 14 - 20, 2023 P RO C L AM AT I O N •NAT IO NAL P UB L I C WO RK S WE E K - M AY 21 - 27, 2023 P RO C L AM AT I O N •NAT IO NAL P O L I C E WE E K - M AY 14 - 20, 2023 AND P E AC E O F F I C E RS M E M O RIAL D AY - M AY 15, 2023 P RO C L AM AT I O N
•B UI L D I NG & S AF E T Y M O NT H P RO C L AM AT I O N

P UB L IC C O M M E NT S O N NO N-AG E ND A I T E M S UND E R T HE S UB J E C T M AT T E R

J URIS D I C T IO N O F T HE C I T Y C O UNC I L / S UC C E S S O R AG E NC Y D uring this time, the members of the public may address the C ity Council / Successor A gency regarding any items within the subject matter jurisdiction of the City Council / S uccessor A gency. Public comments are limited to 3 minutes per person subject to an overall 30-minute period for non-agenda items.

Government C ode S ection 54590 prohibits the City Council / S uccessor A gency from taking action or engaging in discussion on a specific item unless it appears on the agenda.

P UB L IC C O M M E NT S O N AG E ND A I T E M S O NLY D uring this time, the members of the public may address the City Council / A gency Members regarding any items listed on the agenda. P ublic comments are limited to 3 minutes per person.

C I T Y M ANAG E R'S RE P O RT
C O NS E NT C AL E ND AR (Item Nos. 1 - 6)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. T here will be no separate discussion of these items unless members of the City C ouncil / 2 Successor A gency request specif ic items to be removed f rom the Consent Calendar for separate action.

I tems called f or separate discussion will be heard as the next order of business.

1.G E NE RAL M O T I O N T O WAIV E F UL L RE AD I NG AND AP P RO V E O RD INANC E S B Y T I T L E O NLY P URS UANT T O C AL I F O RNIA G O V E RNM E NT C O D E S E C T I O N 36934 I n order to expedite the conduct of business at City C ouncil meetings, California S tate L aw (California Government C ode Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the f ull reading.

Recommendation:

I t is staff's recommendation that the C ity C ouncil approve a general motion to waive f ull reading and approve Ordinances by title only pursuant to C alif ornia Government Code Section 36934.

2.AP P RO VAL M INUT E S O F AP RI L 24, 2023 C L O S E D S E S S IO N AND C IT Y / S UC C E S S O R

AG E NC Y J O INT M E E T I NG
A pprove the minutes of the A pril 24, 2023 C losed S ession and C ity/Successor Agency J oint Meetings.

Recommendation:

I t is staf f 's recommendation that the City Council approve the minutes of the A pril 24, 2023 Closed S ession and C ity/Successor Agency J oint Meetings.

3.WARRANT RE G I S T E R S UC C E S S O R AG E NC Y
I n approving the action of receiving and f iling the warrant registers, the official minutes of the S uccessor A gency should state that each individual member of the S uccessor Agency is not voting on, influencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same Successor Agency Member, or pays for any costs or expenses, or otherwise benef its the same named Successor Agency Member. E ach S uccessor A gency Member will not be participating, influencing or voting on any such warrant bearing their name or which benefits the same named Successor A gency Member, but with that exception is voting in favor of receiving and f iling all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

I t is staf f 's recommendation that the S uccessor A gency Members receive and f ile the warrant register dated 04/11/23.

4.WARRANT RE G I S T E RS AND WI RE T RANS F E RS
I n approving the action of receiving and f iling the warrant registers, the official minutes of the Bell Gardens City C ouncil should state that each individual member of the City C ouncil is not voting on, inf luencing the outcome of, or participating in approving, accepting, receiving or filing any warrant which bears the name of the same council member, or pays for any costs or expenses, or otherwise benefits the same named council member. Each council member will not be participating, inf luencing or voting on any such warrant bearing their name or which benef its the same named council member, but with that exception is voting in favor of receiving and filing all other warrants contained in this report, unless otherwise noted on the record at the time of the approval of the action required by this report.

Recommendation:

I t is staff's recommendation that the C ity C ouncil receive and f ile the warrant registers, wire transfers, and net payrolls dated 04/06/23, 04/11/23 and 04/18/23. 3 5.RE S O L UT IO N AP P RO V ING T HE C I T Y 'S ZE RO E M IS S IO N B US RO L L O UT P L AN T he California Air R esources Board (C A R B) created the I nnovative C lean Transit R egulation (I C T ) in December 2018 and requires all public transit agencies to gradually transition to a 100% zero-emission bus (Z E B ) f leet by 2040. C A R B requires 25% of eligible new bus purchases to be zero-emission starting in 2026 and 100% by 2029. Under the I C T, the C ity of Bell Gardens is considered a small operator and is required to submit a complete Zero-Emission B us Rollout P lan by J une 2023. T he Z E B rollout plan has been completed and requires the approval of the governing body.

Recommendation:

I t is staff's recommendation that the City Council by motion adopt the attached Resolution, approving the C ity of Bell Gardens Z ero E mission B us R ollout P lan.

6.AP P RO V E O F P URC HAS E O RD E R AG RE E M E NT WIT H C AM INO RE AL C HE V RO L E T

F O R T HE P URC HAS E O F P UB L IC WO RK S V E HIC L E On March 30, 2023, the Public Works D epartment released a Request f or Quotation for a 2023 Chevrolet S ilverado C rew Cab Truck 2W D , E ngine Duramax 6.6L Turbo Diesel, Transmission:

A llison 10-speed automatic with specif ic features. T he Public Works D epartment is looking f or a replacement of an existing 2002 Chevrolet S ilverado 3500HD unit - S M170 which has over 75,000 miles and is used daily to transport equipment and materials. I t is showing its age and it is no longer not cost ef f ective to keep in service. On A pril 13, 2023, one quote was received from Camino R eal Chevrolet f or the proposed replacement vehicle. T he quote was reviewed, and staf f has confirmed that the quote includes all specif ications and details specif ied in the request for quote (R F Q).

Recommendation:

I t is staff's recommendation that the C ity C ouncil by motion:

1. A dopt the attached R esolution; and

2. A pprove an P urchase Order Agreement with C amino Real Chevrolet for the purchase of 2023 Chevrolet S ilverado C rew Cab Truck 2W D , Engine D uramax 6.6L Turbo Diesel, Transmission: A llison 10-speed automatic in a not to exceed amount of $105,686.59; and

3. A pprove an appropriation of up to $40,686.59 from the Gas Tax F und to cover the unbudgeted purchase of the proposed replacement vehicle.

D I S C US S IO N (Item Nos. 7 - 8)

7.RE S I D E NT ART AND YARD S AL E
P ilot program for a R esident A rt and Yard S ale hosted at Veterans Park on F ridays from 11:00 a.m. to 3:30 p.m., adjacent to the F armers Market.

Recommendation:

I t is staf f 's recommendation that the C ity Council by motion provide staff direction to host a Resident A rt and Yard Sale pilot program on F ridays f rom 11:00 a.m. to 3:30 p.m., adjacent to the F armers Market.

8.RE Q UE S T F O R D I RE C T IO N ON T HE C RE AT IO N O F AN O RD INANC E T O AUT HO RI ZE

AND RE G UL AT E C O M M E RC I AL C ANNAB IS AC T I V I T Y 4 F or consideration of an ordinance or f urther study.

Recommendation:

I t is staff's recommendation that the C ity C ouncil:

1. Direct staff to prepare an ordinance authorizing and regulating commercial cannabis businesses; or

2. Take no f urther action and receive and file this report.

C I T Y C O UNC I L / S UC C E S S O R AG E NC Y M E M B E R C O M M E NT S

AD J O URNM E NT
D aisy Gomez, C ity C lerk
Agenda posted on May 4, 2023.
5 CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 1.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O’Kelly, City Manager
B Y:D aisy Gomez, C ity C lerk
S UB J E C T:G E NE RAL M O T I O N T O WAI V E F UL L RE AD ING AND AP P RO V E O RD I NANC E S B Y T IT L E O NLY P URS UANT T O C AL IF O RNI A G O V E RNM E NT C O D E S E C T IO N 36934 D AT E:May 8, 2023
RE C O M M E ND AT IO N:

I t is staff's recommendation that the C ity Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government C ode S ection 36934.

B AC K G RO UND/D IS C US S I O N:

I n order to expedite the conduct of business at Council meetings, C alif ornia S tate L aw (California Government C ode Section 36934) allows Ordinances to be read by title if a majority of the C ouncil supports the motion waiving the full reading. Most California cities adopt a standard motion at the beginning of each meeting in order to effectuate this waiver.

Since most of the Ordinances introduced and adopted consist of multiple pages of technical language, reading by title only allows the Council to eliminate the communication of redundant inf ormation and attend to other matters during the meetings. Otherwise, the entire Ordinance language will have to be read in full.

C O NC L US I O N:

Allowing ordinances to be read by title only, according to California S tate L aw, will expedite the conduct of business at C ouncil Meetings.

F I S C AL I M PAC T:

No fiscal impact.

AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 6 CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 2.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O’Kelly, E xecutive Director
B Y:D aisy Gomez, C ity C lerk
S UB J E C T:AP P RO VAL M I NUT E S O F AP RI L 24, 2023 C L O S E D S E S S I O N AND C IT Y / S UC C E S S O R

AG E NC Y J O I NT M E E T ING
D AT E:May 8, 2023
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the C ity Council approve the minutes of the April 24, 2023 Closed S ession and C ity/Successor Agency J oint Meetings.

B AC K G RO UND/D IS C US S I O N:

Every Closed S ession and City/S uccessor Agency J oint Meetings the City C lerk documents the actions made by the Agency Members/C ity C ouncil.

C O NC L US I O N:

I f approved, the minutes of the Closed S ession and C ity/Successor A gency J oint Meetings will be archived in the C ity C lerk's Office.

F I S C AL I M PAC T:

No fiscal impact.

AT TAC HM E NT S :

D escription
Exhibit 1 - Minutes of A pril 24, 2023 R egular C ity C ouncil/S uccessor A gency J oint Meeting Exhibit 2 - Minutes of A pril 24, 2023 R egular C losed S ession AP P RO V E D E L E C T RO NI C AL LY B Y:

C IT Y C O UNC IL / S UC C E S S O R AG E NC Y T O T HE C O M M UNIT Y

D E V E L O P M E NT C O M M I S S I O N

J O I NT M E E T ING
M O ND AY, AP RI L 24, 2023, 6:00 P M

M I NUT E S
L O C AT IO N: C I T Y C O UNC I L C HAM B E RS, 7100 G ARF IE L D AV E NUE, B E L L G ARD E NS, C A 90201 P UB L IC PART I C IPAT IO N: T he members of the public may address the City Council / Agency Members on any item listed on the agenda or on matters which are not listed on the agenda but are within the subject matter jurisdiction of the C ity Council / S uccessor Agency. P ublic comments are limited to three (3) minutes per person for each designated public comment period(s). P ublic comments for non- agenda items will be limited to a total of 30 minutes. P ublic comments can be made by any of the following ways:

B Y T E L E P HO NE: P hone Number: (669)900-9128 Webinar I D : 813 3236 4343# Passcode: 2021# To address the C ity C ouncil press *9 to raise your hand then *6 to unmute yourself when instructed.

WRIT T E N C O M M E NT S: Public comments may be emailed to Public [email protected] or mailed to: City Clerk's Of f ice, 7100 Garf ield Ave., B ell Gardens, C A 90201. To ensure distribution to the members of the City Council / A gency Members prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. T hose comments, as well as any comments received after, will be distributed to the members of the C ity C ouncil / S uccessor A gency and will be part of the official public record of this meeting.

F or more information, you may contact the C ity Clerk's of f ice during regular business hours 7:30 a.m. to 6:00 p.m., Monday through T hursday at (562) 806-7704.

C AL L T O O RD E R
T he Council Members of the City of Bell Gardens City Council/S uccessor A gency held a J oint R egular meeting on A pril 24, 2023, in the C ouncil Chambers, 7100 Garfield Avenue, B ell Gardens, C A with Mayor Alejandra Cortez presiding. Mayor A lejandra C ortez called the joint meeting to order at 6:05 p.m.

J oseJose
8Exhibit 1

INV O C AT I O N
T he invocation was given by P astor R eynaldo L eal.

P L E D G E O F AL L E G IANC E
T he P ledge of A llegiance was led by Girl Scout Troop # 2543.

RO L L C AL L O F C I T Y C O UNC IL M E M B E RS / S UC C E S S O R AG E NC Y T O T HE C O M M UNI T Y

D E V E L O P M E NT C O M M IS S IO N M E M B E RS

Present:

Marco Barcena, Agency Member/C ouncil Member
Maria P ulido, Agency Member/C ouncil Member
F rancis D e L eon Sanchez, Vice Chair/Mayor Pro Tem
A lejandra C ortez, Chair/Mayor

Absent:

J orgel Chavez, Agency Member/C ouncil Member (E xcused)

P RE S E NTAT IO NS
•AT HE NS S E RV IC E S
Amanda Mejia, Government Affairs Director, provided a presentation. •P RO F E S S I O NAL M UNIC I PAL C L E RK S WE E K AP RI L 30, 2023 - M AY 6, 2023 Mayor Alejandra Cortez read the certif icate of recognition and presented it to the City Clerk's staff. •P RO C L AM AT IO N RE C O G NIZING G L O B AL L O V E D AY C ouncilmember Marco Barcena read the certificate of recognition. •P RO C L AM AT IO N RE C O G NIZING M E NTAL HE ALT H AWARE NE S S M O NT H Mayor P ro Tem F rancis de L eon Sanchez read the certif icate of recognition. •P RO C L AM AT IO N RE C O G NIZING O L D E R AM E RI C ANS M O NT H C ouncilmember Maria P ulido read the certificate of recognition. •RE C O G NI T I O N O F RE S ID E NT S AT TAI NM E NT O F U.S . C IT IZE NS HIP T he certif icate of recognition was moved to the next meeting.

P UB L IC C O M M E NT S O N NO N-AG E ND A I T E M S UND E R T HE S UB J E C T M AT T E R

J URIS D I C T IO N O F T HE C I T Y C O UNC I L / S UC C E S S O R AG E NC Y Karmina L opez, L os Angeles County Park and Recreation, spoke regarding Technical A ssistance 9Exhibit 1

Program Funding.

Lee Squire spoke regarding military appreciation and Central Basin Municipal Water District.

Bruce Crow spoke in opposition to the Global Love Day proclamation and other misdoings.

Carmen Verdugo spoke in support of adding SEAACA to the agenda.

PUBLIC COMMENTS ON AGENDA ITEMS ONLY
Eliazer Ortiz spoke regarding item number 10 and in opposition to street vending.

Bruce Crow spoke regarding item numbers 10 and 11.

Jose spoke regarding item number 10.

CITY MANAGER'S REPORT
City Manager Michael O'Kelly provided a brief report.

CONSENT CALENDAR (Item Nos. 1 - 7)
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council / Successor Agency request specific items to be removed from the Consent Calendar for separate action.

Items called for separate discussion will be heard as the next order of business.

A motion was made by Mayor Alejandra Cortez, seconded by Mayor Pro Tem Francis de Leon Sanchez to approve Consent Calendar Item Nos. 1 - 7.

The motion carried 4-0-1 with the following vote:

AYES: Barcena, Pulido, De Leon Sanchez, Cortez
NOES: None
ABSENT: Chavez
ABSTAIN: None

1.GENERAL MOTION TO WAIVE FULL READING AND APPROVE ORDINANCES BY TITLE ONLY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36934 In order to expedite the conduct of business at City Council meetings, California State Law (California Government Code Section 36934) allows Ordinances to be read by title if a majority of the legislative body supports the motion to waive the full reading.

Recommendation:

It is staff's recommendation that the City Council approve a general motion to waive full reading and approve Ordinances by title only pursuant to California Government Code Section 36934. 10Exhibit 1

2.AP P RO VAL M INUT E S O F AP RI L 10, 2023 C L O S E D S E S S IO N AND C IT Y / S UC C E S S O R

AG E NC Y J O INT M E E T I NG
A pprove the minutes of the A pril 10, 2023 C losed S ession and C ity/Successor Agency J oint Meetings.

Recommendation:

I t is staf f 's recommendation that the City Council approve the minutes of the A pril 10, 2023 Closed S ession and C ity/Successor Agency J oint Meetings.

Recommendation:

I t is staf f 's recommendation that the S uccessor A gency Members receive and f ile the warrant register dated 03/28/23.

Recommendation:

I t is staff's recommendation that the C ity C ouncil receive and f ile the warrant registers, wire transfers, and net payrolls dated 03/23/23, 03/28/23 and 04/04/23.

5.F IRS T AM E ND M E NT T O S P O NS O R AG RE E M E NT WIT H L O S ANG E L E S

C O NS E RVAT I O N C O RP S
I n A pril 2021, the C ity of B ell Gardens was awarded $346,408 of Urban G reening P rogram grant f unds for the “Trees for B G P lanting Project”. The Urban Greening P rogram f unds projects that reduce greenhouse gases by sequestering carbon, decreasing energy consumption, and reducing vehicle miles traveled, while also transf orming the built environment into places that are more sustainable, enjoyable, and effective in creating healthy and vibrant communities. As of February 28, 2023, 500 trees have been planted citywide by L ACC through the Sponsor Agreement. T he estimated 11Exhibit 1

fee for L ACC to perform this scope of work was initial $277,162. One hundred percent of this cost will be reimbursed to the City by the awarded Urban Greening grant funds. Now an amendment to the Sponsor Agreement is needed to extend the engagement period or term of the agreement and increase the total estimated fee paid to L AC C by $24,287.99.

Recommendation:

I t is staf f 's recommendation that the City Council adopt the attached resolution and authorize the City Manager to execute the attached First Amendment to Sponsor Agreement with the Los Angeles Conservation Corps in connection with the Trees for BG Planting Project.

R esolution No. 2023-28 was approved.

6.RI G HT O F E NT RY AG RE E M E NT WI T H L A C O UNT Y S ANI TAT I O N D IS T RIC T F O R F O RD

PARK AB C F IE L D
T he P ublic Works D epartment has been coordinating with L os A ngeles C ounty Sanitation D istrict (County) f or the rehabilitation of the C ounty’s trunk sewer line that traverses the C ity from the southerly city boundary to the northern city boundary. T he most southerly portion of the trunk sewer line is along the western edge of Southern C alif ornia E dison R O W portion of the A B C S occer F ield. T he repair work is necessary f or continued service with maintenance free activities of these important infrastructure conveyance systems. T he project is anticipated to take place f rom J une 2023 through October 2023.

Recommendation:

I t is staff's recommendation that the C ity C ouncil by motion:

1. A dopt the attached R esolution, approving the Right of E ntry A greement between the C ity of B ell Gardens and the L os A ngeles C ounty Sanitation District, for work within the Southern California E dison E asement along the western edge of the B ell G ardens A B C S occer F ield; and

2. Authorize the C ity Manager to execute the required documents.

R esolution No. 2023-29 was approved.

7.AP P RO VAL O F L IV E E NT E RTAI NM E NT AG RE E M E NT WI T H T L C C RE AT I V E

T E C HNO L O G Y F O R I ND E P E ND E NC E D AY C E L E B RAT IO N M ULT I-M E D IA AND L AS E R S HO W
A doption of Resolution and approval of a live entertainment agreement with T L C C reative Technology for a three-year term with the option of two one-year extensions.

Recommendation:

I t is staff's recommendation that the C ity C ouncil by motion:

1. A dopt the attached resolution and;

2. A pprove a live entertainment agreement with T L C C reative Technology for the C ity’s I ndependence Day C elebration Multi-Media L aser Show f or a three-year term with the option of two one-year year extensions.

R esolution No. 2023-30 was approved.

D I S C US S IO N (Item Nos. 8 - 11)

8.P RO G RE S S AND NE X T S T E P S - E VAL UAT IO N O F C IT Y 'S WAT E R S Y S T E M WAT E R

Q UAL IT Y
I n S eptember of 2020, the S tate Water R esources Control B oard – Division of Drinking Water 12Exhibit 1

(S W R C B -D D W ) required the City of B ell Gardens to collect quarterly samples for a series of 18 different per- and poly-fluorinated alkyl substances (P FA S), under G eneral O rder No. D W 2020- 0003-D D W. On September 10, 2021, the C ity turned off the C ity water system’s only operating well #1 due to the exceedances of the Response L evels f or P F O A. W ith the well turned of f , the City water system is utilizing Metropolitan Water D istrict of S outhern C alif ornia (MW D ) at a much higher cost. T he City's engineering firm began well inspection, well prof iling and an evaluation of the options available to the City to improve the water quality of the well to comply with regulations and requirements to get the well back into production. T he Water Quality I mprovement E ngineering Study has been completed and based on all options, I on Exchange P FA S treatment is the most viable option to consider. I f the C ity began the I on exchange treatment design in J uly 2023, it is estimated that Well 1 and its new treatment plant will be operational by D ecember 2026.

Recommendation:

I t is recommended that the C ity C ouncil by motion:

1. Receive and file the report regarding the City’s Water Quality I mprovement E ngineering S tudy containing evaluated options to restore the well to operation and explore alternative groundwater sources;

2. A uthorize staff to issue a R equest f or S ervices (R F S ) to I nfrastructure Engineers to initiate and complete the design of the I on Exchange P FA S Treatment Plant, upon the S tate Water B oard approving the City’s requested grant amendment or C ity appropriating necessary f unding; and

3. A uthorize staff to issue a R equest f or S ervices (R F S ) to I nfrastructure Engineers to initiate the Prop 218 study for a new water rate adjustment in F Y 24-25, upon S tate Water B oard approving the C ity’s requested grant amendment or City appropriating necessary funding.

D ouglas Benash, City E ngineer, provided a presentation.

A motion was made by Mayor Alejandra Cortez, seconded by Councilmember Marco B arcena to approve staf f 's recommendation.

T he motion carried 4-0-1 with the following vote:

AYE S : B arcena, Pulido, D e L eon Sanchez, C ortez NO E S: None
A B S E NT: C havez
A B S TA I N: None

9.PARK ING P O L IC I E S AND P RO G RAM S
T he Bell Gardens P ublic Works Department has received input f rom residents expressing concerns regarding limited parking availability in residential locations. A s part of an effort to address these concerns various policies and programs have been implemented to provide residents with the resources to address their needs.

Recommendation:

I t is staff's recommendation that the C ity C ouncil by motion receive and f ile this report.

Veronica Sanchez, Management Analyst, provided a presentation.

A motion was made by Mayor A lejandra Cortez, seconded by Mayor Pro Tem F rancis de L eon S anchez to receive and file this report.
13Exhibit 1

The motion carried 4-0-1 with the following vote:

AYES: Barcena, Pulido, De Leon Sanchez, Cortez
NOES: None
ABSENT: Chavez
ABSTAIN: None

10.SIDEWALK VENDING COMPLIANCE REPORT
Update on the City's Sidewalk Vending Ordinance No. 932 and report of recent code enforcement activity sidewalk vendors and business to ensure compliance with state and local regulations.

Recommendation:

It is staff's recommendation that the City Council receive and file this report. The City Council may also provide staff with direction, if desired, on added alternative regulations available to administer and enforce the City’s Sidewalk Vending Ordinance.

Gustavo Romo, Community Development Director, provided a presentation.

A motion was made by Mayor Alejandra Cortez, seconded by Councilmember Marco Barcena to receive and file this report.

The motion carried 4-0-1 with the following vote:

AYES: Barcena, Pulido, De Leon Sanchez, Cortez
NOES: None
ABSENT: Chavez
ABSTAIN: None

11.UPDATE ON CITY RENT STABILIZATION AND TENANT EVICTION PROTECTIONS

ORDINANCE
Update on the City's Rent Stabilization and Tenant Eviction Protections Ordinance (No. 925) since its adoption in October of 2022 to provide data on services that have been provided thus far, cost study status, further clarification on qualifying dwelling units, such as mobile homes, and upcoming standing educational workshops.

Recommendation:

It is the recommended that the City Council receive and file this report.

Gustavo Romo, Community Development Director, provided a presentation.

A motion was made by Mayor Alejandra Cortez, seconded by Councilmember Marco Barcena to receive and file this report.

The motion carried 4-0-1 with the following vote:

AYES: Barcena, Pulido, De Leon Sanchez, Cortez
NOES: None
ABSENT: Chavez
14Exhibit 1

ABSTA I N: None

CI T Y COUNCIL / SUCCESSOR AGENCY M E M BER CO MM ENT S Members of the Council and Successor Agency made community announcements, comments, and requested that items be added to a future agenda.

ADJOURNMENT
Mayor Alejandra Cortez adjourned the meeting at 8:12 p.m. _____________________________
Daisy Gomez, City Clerk
Agenda posted on April 20, 2023
15Exhibit 1

CITY OF BELL GARDENS

CITY COUNCIL
REGULAR MEETING – CLOSED SESSION
MONDAY, APRIL 24, 2023
5:00 PM

MINUTES
LOCATION: CITY COUNCIL CHAMBERS, 7100 GARFIELD AVENUE, BELL GARDENS, CA 90201 The meeting will be held at Bell Gardens City Hall in the Council Chambers. The public may attend the meeting in person or virtually as instructed below. You may view the meeting live on the City's website at https://www.bellgardens.org/i-want-to/watch-city-council-meetings .

ACCESSIBILITY: If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability-related modification or accommodation, in order to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7704 or via email to [email protected] no later than 72-hours before the scheduled meeting.

PUBLIC PARTICIPATION: The members of the public may address the City Council / Agency Members on any item listed on the agenda or on matters which are not listed on the agenda but are within the subject matter jurisdiction of the City Council / Successor Agency. Public comments are limited to three (3) minutes per person for each designated public comment period(s). Public comments for non- agenda items will be limited to a total of 30 minutes. Public comments can be made by any of the following ways:

IN-PERSON: Members of the public can provide in-person comments at the podium in the Council Chamber. Public comments are limited to three (3) minutes for each designated public comment period(s) per speaker, unless a different time is announced by the presiding chair. Speakers who wish to address the City Council / Agency Members should do so by submitting a "Public Comment Card" card by 5:00 p.m. for Closed Session items and by 6:00 p.m. for all other designated public comment periods as listed.

BY TELEPHONE: Phone Number: (669)900-9128 Webinar ID: 813 3236 4343# Passcode: 2021# To address the City Council press *9 to raise your hand then *6 to unmute yourself when instructed.

VIRTUALLY LIVE: Members of the public may participate via Zoom by https://zoom.us/join and entering the Zoom Meeting ID: 813 3236 4343 Passcode: 2021 Comments may also be made via the Zoom app by using the "Raise Hand" feature when it is your turn to speak the host will unmute you. Comments will not be accepted in the QandA Chat function of the zoom app.

16Exhibit 2

WRITTEN COMMENTS: Public comments may be emailed to [email protected] or mailed to: City Clerk's Office, 7100 Garfield Ave., Bell Gardens, CA 90201. To ensure distribution to the members of the City Council / Agency Members prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the City Council / Successor Agency and will be part of the official public record of this meeting.

For more information, you may contact the City Clerk's office during regular business hours 7:30 a.m. to 6:00 p.m., Monday through Thursday at (562) 806-7704.

CALL TO ORDER
The Council Members of the City of Bell Gardens City Council held a regular meeting on April 24, 2023, in the Council Chambers, 7100 Garfield Ave, Bell Gardens, CA with Mayor Alejandra Cortez presiding. Mayor Alejandra Cortez called the meeting to order at 5:09 p.m.

ROLL CALL OF CITY COUNCIL MEMBERS

Present: Marco Barcena, Council Member
Maria Pulido, Council Member
Francis De Leon Sanchez, Mayor Pro Tem
Alejandra Cortez, Mayor

Absent: Jorgel Chavez, Council Member (Excused)

PUBLIC COMMENTS ON AGENDA ITEMS ONLY

There were no public comments made.

CLOSED SESSION (Item No. 1):

City Attorney Stephanie Vasquez announced that the Closed Session item is listed on the agenda.

The City Council recessed into closed session at 5:11 p.m. to discuss the item listed on the agenda.

1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6

City Designated Representatives: Michael B. O'Kelly, City Manager Manuel Carrillo, Director of Finance

Employee Organizations: City Employees Association (CEA) Public Works Employees Association (PWEA)
Public Works Supervisors Association (PWSA)
Non-Represented

17Exhibit 2

CLOSED SESSION REPORT

The City Council reconvened to open session at 6:04 p.m., City Attorney Stephanie Vasquez announced that there was no reportable action.

ADJOURNMENT

Mayor Alejandra Cortez adjourned the meeting at 6:04 p.m.

_____________________________
Daisy Gomez, City Clerk
Agenda Posed on April 20, 2023.
18Exhibit 2

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 3.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Manuel C arrillo, D irector of F inance & A dministrative S ervices S UB J E C T:WARRANT RE G IS T E R S UC C E S S O R AG E NC Y D AT E:May 8, 2023
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the S uccessor Agency Members receive and f ile the warrant register dated 04/11/23.

B AC K G RO UND/D IS C US S I O N:

T he attached warrant register is f or 04/11/23. T he warrant register ref lects the obligation of the Successor A gency to the Community D evelopment Commission (S uccessor A gency) f or the above referenced date.

C O NC L US I O N:

I f the recommendation to the Successor A gency Members is approved, then the warrant register dated 04/11/23 will be received and f iled.

F I S C AL I M PAC T:

Warrant register 04/11/23 12926 $2,250.00
Total Voucher $2,250.00
Grand Total Voucher $2,250.00

AT TAC HM E NT S :

D escription
Exhibit 1- Warrant Register
AP P RO V E D E L E C T RO NI C AL LY B Y:

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 4.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Manuel C arrillo, D irector of F inance & A dministrative S ervices S UB J E C T:WARRANT RE G IS T E RS AND WIRE T RANS F E RS D AT E:May 8, 2023
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the City Council receive and f ile the warrant registers, wire transf ers, and net payrolls dated 04/06/23, 04/11/23 and 04/18/23.

B AC K G RO UND/D IS C US S I O N:

T he attached warrant registers, wire transfers, and net payrolls are for 04/06/23, 04/11/23 and 04/18/23. T he warrant registers, wire transfers, and net payrolls ref lect the f inancial obligations of the City f or the above referenced dates.

C O NC L US I O N:

I f the recommendation to the C ity Council is approved, then the warrant registers, wire transfers, and net payrolls dated 04/06/23, 04/11/23 and 04/18/23 will be received and f iled.

F I S C AL I M PAC T:

Wire transfer 04/06/23 1795 - 1798 $274,014.56
Warrant register 04/11/23 185449- 185532 $542,593.85
T otal Ba nk $816,608.41
N et payro ll transfer 04/06/23 -$523,410.58
T ot a l Vouche r $1,340,018.99

Warrant register 04/18/23 185533 - 185621 $1,255,418.51 T ota l Voucher $1,255,418.51

Gra nd T otal Vouche rs $2,595,437.50

AT TAC HM E NT S :

D escription
Exhibit 1- Warrant Register
AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 21 22

23Exhibit 1

24Exhibit 1

25Exhibit 1

26Exhibit 1

27Exhibit 1

28Exhibit 1

29Exhibit 1

30Exhibit 1

31Exhibit 1

32Exhibit 1

33Exhibit 1

34Exhibit 1

35Exhibit 1

36Exhibit 1

37Exhibit 1

38Exhibit 1

39Exhibit 1

40Exhibit 1

41Exhibit 1

42Exhibit 1

43Exhibit 1

CIT Y OF BE LL GARDE NS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 5.

T O:Honorable Mayor and City C ouncil Members
F RO M : Michael B . O'K elly, City Manager
B Y:Veronica S anchez, Management A nalyst
November Olague, S r. Transportation Dispatcher
S UB J E C T:RE S O L UT I O N AP P RO V I NG T HE C IT Y 'S ZE RO E M IS S IO N B US RO L L O UT P L AN D AT E:May 8, 2023
RE C O M M E ND AT I O N:

I t is staff 's recommendation that the City Council by motion adopt the attached R esolution, approving the City of B ell Gardens Z ero Emission B us R ollout P lan.

B AC K G RO UND/D IS C US S I O N:

T he I nnovative Clean Transit R egulation (I C T) was adopted in December 2018 and requires all public transit agencies to gradually transition to a 100% zero-emission bus (Z E B ) f leet. The C alifornia Air Resources B oard (C A R B ) created the I C T to require transit agencies to move towards zero-emission technology. Under the I C T, the C ity of B ell G ardens is considered a small operator. F or small operators, C A R B requires 25% of eligible new bus purchases to be zero-emission starting in 2026 and 100% by 2029.

T he I C T also requires each transit agency to submit a complete Zero-E mission B us Rollout P lan (Rollout Plan), approved by its governing body, showing how it plans to achieve a f ull transition to zero-emission buses (Z E B s). S mall transit operators are required to complete their Rollout P lan by J une 2023. The Rollout P lan identif ies the fleet needs, replacement schedule, capital planning, and identif ication of barriers and opportunities.

Presented f or C ity Council review and approval is the draf t City of Bell Gardens Z ero-E mission B us R ollout Plan (R ollout Plan). The Rollout P lan describes how the C ity will transition to zero-emission buses as well as identif ying maintenance, service areas, and opportunities. As described, starting in J anuary 2024, the C ity’s new transit and paratransit contract operator will be expected to use 100% zero emission buses to service Bell Gardens. I n 2035 when the C ity’s existing senior conventional bus (gasoline operated) reaches its end of life, the City will replace it with a new zero emission bus. S taf f will explore f uture f unding through A ir Quality Management District and A ir R esources Board to fully implement the f leet zero emission purchase and construction of needed infrastructure.

Approval of this plan requires City C ouncil to adopt a resolution approving the Rollout Plan.

C O NC L US ION:

I f the Z ero E mission B us R ollout plan is approved by C ouncil, staf f will proceed to submit to the Calif ornia A ir R esources B oard by J une 2023.

F I S C AL I M PAC T:

None. T he Z E B rollout plan was completed in-house by the Public Works Transportation Division. 44 AT TAC HM E NT S :

D escription
Exhibit 1 - R esolution No. 2023-31
Exhibit 2 - Z E B Rollout plan
AP P RO V E D E L E C T RO NIC AL LY B Y:

Michael B . O'K elly, City Manager
S tephanie Vasquez, City Attorney and/or Susie Altamirano, A ssistant City Attorney Manuel Carrillo, Director of F inance and A dministrative S ervices 45 RESOLUTION NO. 2023-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING APPROVING THE CITY OF

BELL GARDENS ZERO-EMISSION BUS ROLLOUT PLAN

WHEREAS, the California Air Resources Board (CARB) created the Innovative Clean Transit Regulation (ICT) in December 2018 and requires all public transit agencies to gradually transition to a 100 percent zero-emission bus (ZEB) fleet; and

WHEREAS, Under the ICT, the City of Bell Gardens is considered a small operator, requiring 25% of eligible new bus purchases to be zero-emission starting in 2026 and 100% by 2029; and

WHEREAS, the ICT also requires each transit agency to submit a complete Zero- Emission Bus Rollout Plan (Rollout Plan) by June 2023, approved by its governing body; and

WHEREAS, the Zero-Emission Bus Rollout Plan sets forth the City of Bell Garden’s plan which meets the requirements set forth by Innovative Clean Transit Regulation (ICT); and

WHEREAS, this plan set’s forth a goal of full transition to zero-emission buses by 2040 with careful planning that avoids early retirement of conventional internal combustion engine buses.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:

SECTION 1. The City Council of the City of Bell Gardens hereby approves the City of Bell Garden’s Zero-Emission Rollout Plan as forth in full.

SECTION 2. Based upon the above recitals, the staff report accompanying this Resolution, and such other oral and written evidence, the Bell Gardens City Council hereby approves the City of Bell Gardens Zero Emissions Bus Rollout Plan.

SECTION 3. The City Council further authorizes and directs staff to submit the Zero Emission Bus Rollout Plan to the California Air Resources Board, along with all exhibits and other ancillary documents necessary.

SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.

[Signatures on the following page]
46Exhibit 1

Resolution No. 2023-31
2 of 2
PASSED, APPROVED and ADOPTED this 8th day of May, 2023.

THE CITY OF BELL GARDENS

________________________________
Alejandra Cortez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

47Exhibit 1

Zero-Emission Bus Rollout Plan

Section A: Transit Agency Information
City of Bell Gardens
7100 Garfield Ave
Bell Gardens, CA 90201

Vehicles: 6 ( 1 C i t y o w n e d ; 5 o p e r a t e d b y c o n t r a c t o r )

Population: 38,552

Contact Information:

November Olague
Senior Dispatcher
(562) 806-7776
[email protected]

Veronica Sanchez
Management Analyst
(562) 806-7770
[email protected]

Section B: Rollout Plan General Information

On December 14, 2018, the California Air Resources Board (CARB) adopted the Innovative Clean Transit (ICT) regulation that requires all public transit agencies to transition to a 100% percent zero emission bus (ZEB) fleet by 2040. The ICT regulation also requires the governing body of each public transit agency to approve a ZEB Rollout Plan for submittal and approval by CARB showing plans to achieve a full transition to zero-emission buses (ZEBs). The City of Bell Gardens has to submit their ZEB Rollout Plan to CARB by June 30, 2023.

48Exhibit 2

Section C: Current Bus Fleet Composition
City of Bell Gardens contracts with Parking Company of America (PCA) for paratransit and transit services providing the City’s Dial-A-Ride and Trolley bus systems through December 31, 2023. The contract currently does not call for any zero emission buses. City of Bell Gardens currently has a contracted fleet of 3 fixed route vehicles consisting of 27’ foot buses and 2 Dial-A-Ride vehicles; these are owned by the contract operator. The City owns one 26’ foot bus used for senior trips. The below Table 1 represents the current fleet utilized in transit operations.

Table1: Individual Bus Information
# OF BUSES

IN REVENUE

SERVICE

MODEL
YEAR

MAKE

MODEL

FUEL TYPE

BUS TYPE

Length
1 2018 FORD STARCRAFT REGULAR STANDARD 27'
1 2018 FORD STARCRAFT REGULAR STANDARD 27'
1 2018 FORD STARCRAFT REGULAR STANDARD 27’
1 2018 FORD STARCRAFT REGULAR STANDARD 27’
1 2018 FORD STARCRAFT REGULAR STANDARD 27’
1 2020 FORD ALLSTAR REGULAR STANDARD 26'
For its transit contracting operations starting on January 1, 2024, the City of Bell Gardens intends to require the new operator to only utilize zero-emission transit. No conventional buses (i.e., CNG, LNG, gasoline hybrid fueled vehicles) will be allowed to be operated by the contractor.

The City will continue using its conventional gasoline fueled bus until it reaches its anticipated end of life, in 2035. By 2035, the City will purchase a zero emission bus to replace the existing unit. The exact type of bus to be purchased will not be known until closer to that date, based on ever-changing technology and emission requirements. However, the City anticipates purchasing an electric bus for the replacement.

Section D: Facilities and Infrastructure Modifications
Since the City of Bell Gardens intends to continue to contract for its paratransit and transit services, the City does not currently have plans to modify its yard and maintenance facility to accommodate the transition to zero-emission. However, in 2035, when the City replaces its conventional gasoline bus with a zero emission unit, the City will install the necessary electric vehicle charging station at the City Public Works yard (8327 Garfield Avenue, Bell Gardens, CA 90201) to support the new replacement bus.
49Exhibit 2

The City of Bell Gardens buses operated by PCA are currently stationed at their private facility (3165 Garfield Ave Commerce, CA 90040). When the new contractor resumes the upcoming contract in January 2024, that operator will ensure the facility upgrades or modifications take place at that facility to support the City’s requirement to operate zero emission buses for Bell Gardens paratransit and transit services.

In its new contract with the future transit service provider starting in January 2024, the City will require that the fleet provided by the selected contractor employ the use of only zero emission fleet. The current contract with PCA will expire December 31, 2023.

The City will be developing a Request for Proposals (RFP) to be released in mid- 2023, to hire a new contractor to provide transit and paratransit services utilizing only zero emission fleet. The new contractor will be expected to begin services on January 1, 2024.

Contract operators and city staff will be properly trained in the operation of zero emission buses as well as proper maintenance. For the City owned bus being converted to zero emissions in 2035, the City will contract with a local vehicle repair shop to provide preventative maintenance and repairs as necessary.

Section E: Providing Service in Disadvantaged Communities

The City of Bell Gardens provides service to approximately 134,600 thousand passengers annually in an urban service area of 2.5 square miles, located on the eastside of Los Angeles. City of Bell Gardens provides regional connections to City of Commerce, Montebello Bus line, and Los Angeles Metro lines.

The City of Bell Gardens is located entirely within a disadvantaged community zone. 100% of the City will be provided fixed route and paratransit services utilizing zero emission buses starting January 1, 2024.

City of Commerce Line 300

50Exhibit 2

Montebello Line 30

Metro Bus Line 110

Metro Bus Line 111

Section F: Maintenance and Operation of Zero Emission buses

Contract operators and city staff will be properly trained in the operation of zero emission buses as well as proper maintenance. For the City owned bus to be converted to zero 51Exhibit 2

emissions in 2035, the City will contract with a local vehicle repair shop to provide preventative maintenance and repairs as necessary.

Section G: Funding Sources

The City will seek grant funding through Air Quality Management District and California Air Resources Board for the replacement of the City’s conventional bus with a new zero emission bus in 2035. The City will also seek federal or state funding through capital infrastructure programs to install the electric vehicle charging station / hardware.

52Exhibit 2

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 6.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Veronica Sanchez, Management Analyst
C arlos Marin, S uperintendent
S UB J E C T:AP P RO V E O F P URC HAS E O RD E R AG RE E M E NT WI T H C AM I NO RE AL C HE V RO L E T

F O R T HE P URC HAS E O F P UB L I C WO RK S V E HI C L E D AT E:May 8, 2023
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the City Council by motion:

1. Adopt the attached Resolution; and

2. Approve an Purchase O rder A greement with Camino Real Chevrolet for the purchase of 2023 C hevrolet Silverado Crew C ab Truck 2 W D, E ngine D uramax 6.6L Turbo D iesel, Transmission: Allison 10-speed automatic in a not to exceed amount of $105,686.59; and

3. Approve an appropriation of up to $40,686.59 from the Gas Tax F und to cover the unbudgeted purchase of the proposed replacement vehicle.

B AC K G RO UND/D IS C US S I O N:

Pursuant to Section 3.04.080 of the Bell Gardens Municipal C ode, on March 30, 2023, the P ublic Works D epartment released a Request for Quotation (R F Q) for a 2023 Chevrolet S ilverado Crew Cab Truck 2W D, Engine D uramax 6.6L Turbo Diesel, Transmission: Allison 10-speed automatic with specific f eatures.

T he Notice I nviting Bids was published in the B ell Gardens R eview on March 30, 2023, and April 6, 2023.

T he P ublic Works Department is looking for a replacement of an existing vehicle as described below.

Existing Vehicle Replacement Vehicle R eplacement Cost
2002 Chevrolet Silverado
3500HD
(unit S M-170)
2023 Chevrolet
Silverado Crew Cab
D iesel
$105,686.59 (includes
specif ic outfitting equipment)

Vehicle Description and Condition
2002 C hevrolet Silverado 3500HD unit - S M170 with over 75,000 miles. The truck is assigned to the Street Maintenance division of P ublic Works. I t is over 20 years old and in deteriorating condition. T he truck is outfitted with special equipment and vital to the S treet Maintenance operation. I t is used daily to transport equipment and 53 materials. I t is showing its age and it is no longer cost effective to keep in service.

On A pril 13, 2023, one quote was received f rom Camino Real Chevrolet f or the proposed replacement vehicle, a 2023 C hevrolet Silverado Crew C ab Truck 2W D , Engine Duramax 6.6L Turbo Diesel, Transmission: A llison 10- speed automatic.

T he quote was reviewed, and staff has confirmed that the quote includes all specif ications and details specif ied in the R F Q. T he quote totaled $105,686.59, which includes outf itting the truck but can be negotiated for cost savings.

I f approved, delivery can be made by May 30, 2023.

C O NC L US I O N:

T he requested replacement vehicle serves an important need to the C ity since it is utilized by staff daily to respond to and address street maintenance. T he appropriation of funding in the amount of up to $40,686.59 of Gas Tax is necessary to f ully f und the purchase of this replacement vehicle.

F I S C AL I M PAC T:

T he F Y 2022-23 Public Works Budget includes $65,000 of Gas Tax f unds for the purchase of this truck. An additional appropriate of up to $40,686.59 of Gas Tax is needed to complete the purchase of this truck.

AT TAC HM E NT S :

D escription
Exhibit 1 - Resolution No. 2023-32
Exhibit 2 - P urchase Order A greement with R F Q and Quote Exhibit 3 - E xisting Vehicle S M170
AP P RO V E D E L E C T RO NI C AL LY B Y:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

GARDENS, CALIFORNIA, APPROVING A PURCHASE ORDER

AGREEMENT WITH CAMINO REAL CHEVROLET FOR THE

PURCHASE OF A PUBLIC WORKS VEHICLE

WHEREAS, Section 3.04.080 of the Bell Gardens Municipal Code requires a formal purchasing procedure be followed for the purchase of supplies, equipment, and services over $10,000; and

WHEREAS, the Public Works Department issued a Notices Inviting Bids for the purchase of a 2023 Silverado Crew Cab Truck; and

WHEREAS, on April 13, 2023, one quote was received from Camino Real Chevrolet for a 2023 Chevrolet Silverado Crew Cab Truck 2WD, Engine Duramax 6.6L Turbo Diesel, Transmission: Allison 10-speed auto; and
WHEREAS, the City Council finds that the City has complied with the procurement process; and
WHEREAS, the City desires enter into an Purchase Order Agreement with Camino Real Chevrolet for the purchase of a 2023 Chevrolet Silverado Crew Cab Truck 2WD, Engine Duramax 6.6L Turbo Diesel, Transmission: Allison 10-speed automatic in the amount not to exceed $105,686.59.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:

SECTION 1. The City Council finds that the above recitals are true and correct and incorporate them herein.

SECTION 2. The City Council finds that the City has complied with Section

3.04.080 of the Bell Gardens Municipal Code.

SECTION 3. The City Council hereby approves a Purchase Order Agreement with Camino Real Chevrolet for the purchase of a 2023 Chevrolet Silverado Crew Cab Truck 2WD, Engine Duramax 6.6L Turbo Diesel, Transmission: Allison 10-speed automatic in the amount not to exceed $105,686.59.

SECTION 4. The City Council further authorizes the City Manager to execute the Purchase Order Agreement with Camino Real Chevrolet consistent with this resolution along with any ancillary documents reasonably necessary to effectuate the intent of this Resolution.
55Exhibit 1

Resolution No. 2023-32

2 of 2

SECTION 5. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.

PASSED, APPROVED and ADOPTED this 8th day of May, 2023.

THE CITY OF BELL GARDENS

________________________________
Alejandra Cortez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

56Exhibit 1

57Exhibit 2

TERMS AND CONDITIONS

1. DEFINITIONS: The phrase “City of Bell Gardens” shall mean the governing body of the City of Bell Gardens, or any department thereof, hereinafter called the “City.”

2. ACCEPTANCE OF PURCHASE ORDER: This purchase order constitutes City’s offer to Vendor and shall become a binding contract upon the terms and conditions set forth herein upon acceptance by Vendor either by acknowledgment or commencement or performance. No charges for transportation, unloading, containers, packing, etc., will be allowed unless specified in vendor's quotation

3. DATA AND FACILITIES: Vendor represents that he now has or can readily procure without assistance of the City all data, facilities, machinery and equipment necessary for the performance of this purchase order.

4. CASH DISCOUNT: The date used as the basis for cash discount calculation is the date the Articles are received or the date an acceptable invoice is received, whichever is later.

5. PACKING AND SHIPPINGS: Deliveries shall be made as specified without charge for boxing, crating, carting, or storage unless otherwise specified, and Articles shall be suitably packed to secure lowest transportation costs, and in accordance with the requirements of common carriers, and in such manner as to assure against damage from weather or transportation.

6. TAXES: Vendor shall separately state on all invoices any taxes imposed by federal or state government applicable to furnishing of the articles; provided, however, where a tax exemption is available, such tax shall be subtracted from the total price and identified. Municipalities are exempt from federal excise and transportation taxes. Total prices quoted are to exclude federal taxes. Exemption certificates will be furnished upon request. Unless otherwise indicated, prices quoted will be considered to exclude state and city sales or use tax, which is payable by the City.

7. PRICES: Vendor represents that the prices quoted to or paid by City shall not exceed current prices charged to any other customer of Vendor for items which are the same or substantially similar to the articles, taking into account the quality under consideration, and Vendor will forthwith refund any amounts paid by City in excess of such price.

8. WARRANTY: Vendor warrants that all Articles will conform to applicable specifications, drawings, descriptions and samples, and will be merchantable, of good workmanship and material, and free from defect.

9. CHANGES: City shall have the right by written notice to change the extent of the work covered by the contract, the drawings, specifications, or other description herein, the time, method or place of delivery or the method of shipment or packaging or to suspend work. Upon receipt of any such notice, Vendor shall proceed promptly to make the changes in accordance with the terms of the notice. If any such change causes an increase or decrease in the cost or performance or in the time required for performance, an equitable adjustment shall be negotiated promptly, and the contract modified in writing accordingly. Vendor shall deliver to City as promptly as possible, and in any event within thirty (30) days after receipt of change notice, a statement showing the effect of any such change in the delivery dates and prices, such statement to be supplemented within thirty (30) days from the date thereof by detailed specification of the amount of the price adjustment and supporting cost figures. Failure of Vendor to submit the statements within the time limits stated shall constitute its consent to perform the change without increase in price, without claim for material rendered obsolete and without change in delivery schedule.

10. TERMINATION: In the event Vendor fails to comply with any term or condition of this agreement or fails to provide the supplies or services in the manner agreed upon by the parties, this failure shall constitute a breach of the agreement. City at its sole discretion shall either notify the Vendor that it must cure this breach within 15 days of notice of breach or provide written notification of its intention to terminate this agreement. City reserves the right to terminate this agreement for its convenience and will reimburse Vendor for actual costs incurred in performance of this agreement through the effective date of termination.

11. DEFAULT: City may, by written notice to Vendor, cancel for default this contract, in whole or from time to time in part, (1) if the Vendor fails to deliver the Articles or to perform the services strictly within the time specified herein, of if no time is specified, within a reasonable time; (2) if the Articles delivered do not conform to contractual requirements or if Vendor fails to perform any of the other provisions of the contract, or so fails to make progress as to endanger performance of the contract in accordance with its terms; or (3) if the Vendor becomes insolvent or commits an act of bankruptcy. If this contract is cancelled for default, City in addition to all other rights afforded by law for Vendor's breach of contract, shall have the right to charge Vendor the amount by which the costs of fabricating or procuring the Articles cancelled from another source exceed the prices specified herein, and City may set off any such charge against any amounts which may become payable to Vendor under the contract or otherwise. Upon such cancellation Vendor will deliver to City any of the Articles, parts or materials, for which City shall make written request at or after cancellation and City will pay Vendor the fair value of any such property so requested and delivered.

12. ASSIGNMENT OF CONTRACT: None of the sums due or to become due nor any of the work to be performed under this contract shall be assigned nor shall Vendor subcontract for completed or substantially completed Articles or major components thereof without City’s prior written consent.

13. INDEMNITY: Vendor agrees to defend, indemnify and hold harmless the City, its elected officials, officers, agents, employees and volunteers, at Vendor's sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents, employees and volunteers arising out of the performance of the Vendor, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this contract. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Vendor, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Vendor, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents, employees and volunteers based upon the work performed by the Vendor, its employees, and/or authorized subcontractors under this contract, whether or not the Vendor, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Vendor's Proposal, which shall be of no force and effect.

14. WAIVERS: The failure of the City to insist, in any one or more instances, upon the performance of any of the terms, covenants or conditions of this contract, or to exercise any right hereunder shall not be construed as a waiver or relinquishment of the future performance of any such term, covenant or condition or the future exercise of such right, but the obligation of Vendor with respect to such future performance shall continue in full force and effect.

15. EQUAL EMPLOYMENT OPPORTUNITY: The Vendor affirms that it shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, or national origin. The Vendor will ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, sex, or national origin. Such policy of the Vendor shall apply, but not be limited to the following:

Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layout or termination rates of pay or other forms of compensation and selection for training, including apprenticeship.

16. PREVAILING WAGES. For public projects. Vendor shall comply with Prevailing Wage Requirements. Pursuant to sections 1720 through 1861 of the California Labor Code.

17. INSURANCE: Vendor shall obtain and maintain during the performance of any services under this contract the following insurance coverage issued by a company satisfactory to the City Attorney, the requirement that Vendor obtain and maintain such insurance coverage.

17.1. Commercial general liability insurance, including a contractual liability endorsement, in an amount not less than $ 1,000.000 combined single limit for bodily injury and property damage for each claimant for general liability with coverage equivalent to Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 2010 ed), with no special limitations affecting City.

17.2. Business/Commercial automobile liability insurance in an amount not less than $1,000,000 combined single limit for bodily injury and property damage for each claimant for automobile liability with coverage equivalent to Auto Liability Insurance Services Office coverage (Occurrence Form CA 001, including Symbol 1 (any auto)), with no special limitations affecting City.

17.3. Workers' compensation insurance in compliance with the laws of the State of California, including employer's liability insurance in an amount not less than $1,000,000 per claimant.

17.4. Vendor shall not commence work under this contract until it has obtained City approved insurance. Before beginning work hereunder, during the entire period of this contract, for any extensions hereto, and for periods after the end of this contract as may be indicated below, Vendor must have and maintain in place all of the insurance coverages required by City. Vendor's insurance shall comply with all items specified by this contract.

Any subcontractors shall be subject to all the requirements of this section and Vendor shall be responsible to obtain evidence of insurance from each subcontractor and provide it to City before the subcontractor commences work. Alternatively, Vendor's insurance may cover all subcontractors.

18. BUSINESS LICENSE. For any work done within the City, Vendor shall obtain, prior to issuance of a PO, and maintain a valid business license from City.

19. GOVERNING LAW. This contract shall be governed by the laws of the State of California.

In the event of litigation between the City and the Vendor, the prevailing party shall be entitled to reasonable attorneys' fees and costs incurred based on comparable fees of private attorneys practicing in Los Angeles County.

20. COMPLIANCE WITH LAW: Vendor shall in the performance of the contract comply with all applicable laws, regulations, ordinances, proclamations, demands and requisitions of the City of Bell Gardens or State of California.

21. ENTIRE AGREEMENT. This contract contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements, or understandings (whether oral or written) between or among the parties relating to the subject matter of this contract which are not fully expressed herein. If the attachments or exhibits to this contract, if any, are inconsistent with this contract, this contract shall control.
58Exhibit 2

REQUEST FOR QUOTATION
2023 Silverado Crew Cab Truck

The City of Bell Gardens (“City”) is requesting bids for a 2023 Chevrolet Silverado Crew Cab Truck 2WD, Engine Duramax 6.6L Turbo Diesel, Transmission: Allison 10 -speed auto. Refer to the truck specifications for additional features. Truck must be delivered to the City of Bell Gardens Public Works Yard, 8327 Garfield Avenue, by May 30, 2023.

Submittal Information

Sealed bids (using City quotation form) must be received by the office of the City Clerk, City of Bell Gardens, 7100 Garfield Avenue, Bell Gardens, CA 90201, no later than:

Thursday, April 13, 2023, at 4:00 p.m. Bids must be submitted in a sealed envelope. Bids received after the time and date indicated above shall be deemed nonresponsive and returned unopened.

The complete RFQ package is posted on the City’s website page (View RFP’s and Bids) at https://www.bellgardens.org/i-want-to/view-bids-rfps/rfps-and-bids If any changes or updates to the RFQ are made, they will be posted on this same webpage.

QUESTIONS

Questions regarding the information contained in the RFQ document must be submitted by email, and addressed to: Carlos Marin, Superintendent [email protected] All questions must be received by 4:00 p.m. on April 6, 2023.

Questions will be responded to in writing and posted on the City’s website page (View RFP’s and Bids) at https://www.bellgardens.org/i-want-to/view-bids-rfps/rfps-and-bids .

Telephone requests for information or inquiries will not be allowed. The intent behind this requirement is to ensure that bidders have available to them the same information and no inconsistent, incomplete or misinformation is communicated to any team.

Bidders may not rely on any oral interpretations given by any City employee and may only rely upon officially issued, written addenda.

RIGHTS OF CITY
The City of Bell Gardens reserves the right to reject any and all bids, or delete portions of any and all bids or waive any informality or irregularity in the bid or the bid procedures and shall be the sole judge of the bids received. The City reserves the right to award to the lowest responsive Bidder as deemed by the City.
59Exhibit 2

Quotation Form
2023 Silverado Crew Cab Truck

Pricing shall be valid for sixty (60) days from date bid proposal is submitted to the CITY.

ITEM DESCRIPTION BID PRICE
TOTAL
1 2023 Silverado Crew Cab truck, as specified in
Request for Quotation
$
2 Applicable taxes and fees: $
3 Bid Grand Total (inclusive of all taxes and fees)

Provide Truck delivery Date: _____________________________________________________ BIDDER’S AUTHORIZATION:

COMPANY NAME: ____________________________________________

NAME AND TITLE OF PERSON AUTHORIZED TO SUBMIT BID ON BEHALF OF COMPANY: _______________________________________________________________ _________________________________________________________________________ SIGNATURE: _______________________________________________

ADDRESS: ___________________________________________________

PHONE: _______________________________________________

FAX: _____________________________________________________

EMAIL: ___________________________________________________

BID DATE: ____________________________________________________

60Exhibit 2

Specifications for 2023 Chevrolet Silverado Crew Cab Truck 2WD Exterior color: Summit White or Bright White Interior color: Jet Black or Dark Gray Engine Duramax 6.6L Turbo Diesel Transmission: Allison 10-speed auto

OWNER BENEFITS
3 YEAR / 36,000 MILE BUMPER-TO-BUMPER LIMITED WARRANTY
5 YEAR / 100,00 MILE POWERTRAIN LIMITED WARRANTY

PERFORMANCE & MECHANICAL

AUTO REAR LOCKING DIFF
220 AMP ALTERNATOR

INDEPENDENT FRONT SUSPENSION

MULTI-LEAF REAR SPRING SUSP
Multi-Leaf Rear Spring Suspension
Stabilitrak with Trailer Sway control & hill start assist All-Season Tires

Engine supplied shall be ORVR CARB certified as being ULEV compliant with all applicable state of California and Federal regulations.

Truck must be equipped with a locking gas cover.

Connectivity & Technology
Chevrolet Infotainment 3 7” Diag color touchscreen
Additional features for compatible phones – Bluetooth, voice command pass through to phone, wired apple carplay
USB ports
Driver Information Center
Rear Seat reminder

Interior
Air conditioning
Power Windows
Front 40/20/40 Bench seats with covered armrest storage 60/40 Rear folding bench seat
Power door locks
Exterior
Halogen reflector headlamps
Roof marker lamps
Front Recovery hooks
Engine Duramax 6.6L Turbo Diesel
61Exhibit 2

Remote Keyless entry
Deep-tinted glass
Rear-window defogger
Cruise control
Trailering mirrors, heated and power-adjustable
Trailer Brake controller
Wide Track axle
Onstar services and wifi hotspot capable
Upfitter switch kit
Chrome Bumpers

BACK-UP CAMERA:

Factory install Back-up Camera to assist driver when backing up. Able to see 180 degrees both right and left side. 100 % waterproof and element resistance. Motion detection technology with IR illumination that changes to black and white in dark environments. Camera must be mounted to bumper kick plate, with a damage protection guard or brow. Fully functional with factory mounted dash monitor screen.

BACKUP ALARM:

Backup alarm (Reference- Ecco Model, SA950 87/102 dB(A) must be installed' and wired to the factory backup lamp circuit.

BACKING SENSOR:

Vehicle must include factory installed backing assist that incorporates the following features: Acoustic detector which transmits a modulated beam signal that penetrates fog, rain, smoke and snow in most types of weather day and night. System must be capable of transmitting a signal that strikes a stationary or moving target and bounces back to the receiver and instantaneously sends the signal to the microprocessor. Must have a minimum 8- bit microprocessor programmed with software that processes feedback signals automatically and transmits the signal to a speaker, alerting the driver of the distance to obstacle. The microprocessor should determine that a particular condition requires the driver to take precaution.

The system must be capable of sounding a special emergency sound that assist the driver to take corrective action.

WHEELS AND TIRES:

A matched set of five (5) mounted and balanced wheels and tires including the mounted and balanced spare. Spare is to be mounted in a factory installed, underneath lockable spare tire carrier. All Tools, including the jack, lug wrench, and tire carrier crank, required to change the spare, are to be included.

62Exhibit 2

Keys, three (3) complete sets with remotes, all keys and remotes must be programmed to vehicle.

3rd Party Equipment:

Truck shall be upfitted with the following:
• 10’ CONTRACTOR W/DROP-DOWN *** ALUMINUM GATES &
FLOOR***INCLUDED

TAPERED OVER CAB RACK (FORKLIFT LOADABLE)
(2) TBO72 (TOP MOUNT BOX)
(2) UB-3420 (UNDERBODY BOX DRW)

STAINLESS STEEL UPRIGHTS WITH ALUMINUM SLAT GATES

ALUMINUM TREADPLATE OVERLAY ON OPEN TOP BOXES
50/50 TAPERED HEADBOARD, ***ALUMINUM FLOOR****
DROP IN TAILGATE, DOCK BUMPER. LEGAL LIGHT PACKAGE, ROYAL MUD FLAPS.

WEIGHT CERTIFICATE, PAINTED WHITE AND INSTALLED.
• PLATFORM CLASS 5 RECEIVER HITCH and HITCH INSERT, 16,000 LBS GTW
• 110 OUTLET MOUNTED IN REAR OF SERVICE BOX
• FRONT STROBES IN HEADLIGHTS
• 7 BLADE4 PIN TRAILER CONNECTOR
• WHELEN #WIONSMA ION WIDE ANGLE SURFACE MOUNT SERIES 4”

SUPER-LED FLASHERS

2-MOUNTED AT FROM GRILLL 2 MOUNTED AT REAR END PANELS

FEDERAL SIGNAL ALLEGIANT FSJOIN LIGHT BAR WITH CONTROLLERS AND

MOUNT KIT
63Exhibit 2

64Exhibit 2

65Exhibit 2

66Exhibit 2

67Exhibit 2

68Exhibit 2

69Exhibit 2

70Exhibit 2

71Exhibit 2

72Exhibit 2

Exhibit 3 – SM170

73Exhibit 3

CIT Y OF BE LL GARDENS

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 7.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Elizabeth Nava, D irector of Recreation and Community Services S UB J E C T:RE S ID E NT ART AND YARD S AL E
D AT E:May 8, 2023
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the C ity C ouncil by motion provide staf f direction to host a Resident Art and Yard Sale pilot program on F ridays from 11:00 a.m. to 3:30 p.m., adjacent to the F armers Market.

B AC K G RO UND/D IS C US S I O N:

I t was brought to staff’s attention that there is a need in the community for residents to have a space where they can sell their art, craf ts, clothing, used goods and other personal property (similar to what you would f ind at a local yard sale). A s a means of meeting this need, staff is considering a pilot project which would provide interested residents an opportunity to sell their items at Veterans P ark during the same hours as the weekly F armers Market.

Project D etails
T he purpose of this project is to help residents who can’t sell their art or home goods at a yard sale because they don’t have a yard, or those who haven’t had much success in sales because of low traf f ic where they live. I n order to achieve the goal of this program, there will be guidelines put into place that applicants must abide by in order to obtain a booth. T hese guidelines will prohibit someone f rom reselling commercially purchased products, food sales and other provisions. This program is of f ered to residents only and booths will be free of charge. An application must be submitted, and space will be given on a f irst come first served basis. T he Resident Art and Yard S ale program will be held at Veterans P ark during the same time as the F armer’s Market, F ridays from 11:00 a.m. – 3:30 p.m.

R ecreation and Community Services staff met with Ven A Ver Events, the vendor who hosts the Bell Gardens weekly F armers Market on F ridays, and they welcome the idea and are excited to have additional booths up at Veterans Park during the Market hours. Hosting a pilot program helps staf f better understand the needs of the residents and actively work towards meeting those needs. T his is a pilot project will assess the ef f ectiveness of the services being provided and allow staf f to modif y any portion of the program as is needed for it’s success. Should C ouncil direct staff with moving forward with this item, staff will begin preparation of the application process and timeline for rollout of the program.

C O NC L US I O N:

Staf f hopes that this program will meet the needs of the community and allow B ell Gardens residents an opportunity to build connection by showcasing and selling their art, craf ts, used goods and other personal property.

F I S C AL I M PAC T:

None.
74 AP P RO V E D E L E C T RO NI C AL LY B Y:

O F F I C E O F T HE C I T Y M ANAG E R

AG E ND A RE P O RT
I tem 8.

T O:Honorable Mayor and C ity C ouncil Members
F RO M : Michael B. O'Kelly, City Manager
B Y:Gustavo R omo, Community D evelopment Director
S UB J E C T:RE Q UE S T F O R D IRE C T I O N O N T HE C RE AT I O N O F AN O RD I NANC E T O AUT HO RIZE

AND RE G UL AT E C O M M E RC IAL C ANNAB I S AC T IV IT Y D AT E:May 8, 2023
RE C O M M E ND AT IO N:

I t is staf f 's recommendation that the City Council:

1. D irect staf f to prepare an ordinance authorizing and regulating commercial cannabis businesses; or

2. Take no further action and receive and f ile this report.

B AC K G RO UND/D IS C US S I O N:

On November 6, 1996, California became the first state to legalize the use of medical cannabis through P roposition 215, pursuant to the Compassionate Use A ct (Health & S af ety C ode S ection 11362.5) (Exhibit 2). T his statute allowed for patients with certain illnesses, with the approval from a licensed physician, to obtain cannabis f or medicinal purposes (or their designated primary caregivers).

I n 2004, the California L egislature enacted S enate Bill 420 to clarify the scope of P roposition 215 and to provide qualif ying patients with a limited def ense to certain specified criminal statutes f or medical purposes.

I n S eptember 2015, California enacted the Medical Marijuana Regulation and Safety Act (E xhibit 3), which consisted of three separate bills. T he approval of this act crafted a comprehensive licensing, regulatory and exaction framework f or the cultivation, manufacture, transportation, storage, distribution, testing, and sale of medical marijuana.

I n 2016 Governor J erry B rown signed S B 837, changing the colloquial name “marijuana” to the scientif ic “cannabis,” renaming the act the Medical C annabis Regulation and S afety A ct (“MC R S A”),and updating the B ureau of Medical Marijuana R egulation and the Medical Marijuana Regulation and Safety Act F und to the B ureau of Medical C annabis R egulation and the Medical C annabis Regulation and S af ety Act F und.

On November 8, 2016, the A dult Use of Marijuana Act (“A UMA”) through the approval of P roposition 64 (Exhibit 4) legalized personal and recreational use of cannabis for adults 21 years of age or older, beginning regulation of the legally permitted commercial cannabis industry. Mobile delivery was also approved to be permitted under state law.

T he 2017 Medicinal and Adult-Use C annabis R egulation and S afety Act (“MA UC R S A ”), created a single regulatory system for all commercial cannabis activity. Today, commercial cannabis activity is regulated at the state level by the D epartment of C ommercial C annabis (“D C C ”). T he state issues licenses based on the type of commercial cannabis activity proposed, as described below:

C ommercial Cannabis L icense Types:
76 C annabis C ultivation
C ultivation ref ers to any activity that involves the cannabis planting, growing, harvesting, or processing (drying, curing, grading, trimming) outdoor, indoor, and in mixed light. T he California D epartment of F ood and A griculture (“C D FA ”) is the licensing authority for cannabis cultivation in California since it is distinguished from other agricultural crops or commodities due to its unique nature as a controlled substance, requiring increased security measures and the use of artificial lighting in indoor cultivation environments. Each type of C D FA licensed cultivation category allows f or a maximum cultivation canopy area or number of plants. The maximum cultivation canopy size that the C D FA is currently licensing under a single medium license is an outdoor grow of 43,560 square feet or one acre, or an indoor grow of 22,000 square feet. T he state has limited the cultivation canopy size for a single medium license (def ining “Medium Outdoor” as an outdoor cultivation site between 10,001 square feet[i] and one acre of total canopy, or “Medium I ndoor” as an indoor cultivation site between 10,001 and 22,000 square feet of total canopy).

Agricultural lands are a logical option for cannabis cultivation activities. However, agricultural lands are of great importance and carry regulatory protections to ensure continued stability and productivity. No land within B ell Gardens is currently agriculturally zoned and there is limited Open Space Z oned property which is primarily owned by S outhern C alif ornia Edison and leased to plant nurseries. S ites within Bell G ardens zoned industrial, and manufacturing may be attractive f or small-to medium-licensed indoor cannabis cultivators, though investment in the power grid which would likely be a challenge due to the amount of power needed to run these operations.

C annabis D istribution
I n C alif ornia, cannabis distribution requires a license to transport cannabis and cannabis products. A distributor licensee may move cannabis and cannabis products between cultivation, manuf acturing, or distribution premises, move f inished cannabis goods to retail premises, provide storage to or f or other licensees, or arrange for testing of cannabis products.

C annabis Event
T here are two types of event licenses of f ered by the D C C . A n event organizer and the event are regulated and need to be licensed.

C annabis M anufacturing
C annabis manufacturing refers to volatile and non-volatile manufacturing, extraction, infusion, and packing and labeling. T he D C C is the licensing authority for the manuf acture of cannabis products in C alif ornia.

D C C ’s regulations require manuf acturers to follow good manuf acturing practices (“G MP s”) when making products.

G MPs help ensure consistent consumer safety and correct labeling by requiring manuf acturing licensees, among other things, to maintain sanitary facilities and protect against contamination.

C annabis M icrobusiness
C annabis microbusinesses ref er to the conduct of at least three of the cannabis-related uses at one location. A D C C Type 12 license is required for a combination of up to 10,000 square f eet of cannabis cultivation, cannabis manufacturing, cannabis distribution, or cannabis retail.

C annabis Retail
C annabis retail sales ref ers to a license to sell cannabis goods to customers as a cannabis merchandise dispensary.

R etail sale of cannabis merchandise represents the final product of the cannabis industry. Traditionally, the product that has been grown, harvested, tested, packed, and labeled f or sale prior to reaching a retail sales counter.

C annabis retailers are visible to the public and create the most-known controversy of all cannabis-related uses and 77 activities. R etail sales locations could be permitted in areas that exhibit zoning compatibility, are able to achieve appropriate setbacks and separations and are sites adequate in size to provide appropriate parking, including, but not limited to, required accessible parking pursuant to the Americans with Disabilities Act (“A D A”). T he categories of cannabis retail sales that can be considered include storefront and non-storef ront.

T he state has set strict and unique licensing guidelines for retail sales use. Cannabis retail development standards address unique characteristics related to security, loitering, potential f or crimes of robbery and theft, and access to children. C ommercial and industrial zoned properties present a logical option f or storefront and non-storefront activities so long as operations comply with state law.

Non-storefront retail ref ers to delivery only with no customers accessing the facility.

C annabis Testing
T he D C C Type 8 license is f or laboratories that test cannabis goods prior to sale at a retailer. Testing laboratories require accreditation.

History of Cannabis Consideration in the C ity of Bell Gardens:

C urrently, the C ity of Bell Gardens prohibits all commercial cannabis activities. However, age 21 or over may cultivate up to six living cannabis plants at a private residence per California Health and S af ety Code Section 11362.2(a)(3).

J une 8, 2009 – Ordinance No. 823U (E xhibit 5);
J uly 13, 2009 – Ordinance No. 824-U (E xhibit 6);
M ay 10, 2010 – Ordinance No. 835-U (E xhibit 7);
April 25, 2011 – Ordinance No. 840 (E xhibit 8) – collectively placed a moratorium on the establishment and operation of medical marijuana dispensaries within the boundaries of Bell Gardens; J anuary 25, 2016 – Ordinance No. 873 (Exhibit 9) was adopted to prohibit all commercial cannabis uses citywide, including cultivation and manuf acturing of cannabis and associated products; September 10, 2018 – Ordinance No. 890 (Exhibit 10) amended the B ell Gardens Municipal C ode (“B G MC”) to prohibit specif ic outdoor and commercial cannabis-related uses and activities consistent with state law; and
F ebruary 10, 2020 – S taff presented A genda R eport I tem #15, R E Q UE S T F O R D I R E C T I O N O N

C O NS I D E R AT I O N O F A N I NI T I AT I V E P E RTA I NI NG TO C A NNA B I S-R E L AT E D US E S C I T YW I D E (Exhibit 11). T his item called for the C ity Council to consider a ballot initiative process that would put the question of authorizing cannabis-related uses citywide to voters. T he C ity Council received and filed the report, and no further action was taken.

State law has largely preserved a municipality’s ability to regulate state licensed commercial cannabis activity, including what types of businesses may be permitted or prohibited, local zoning and land use requirements, business license requirements, and the reduction of exposure to secondhand smoke. Cal. B usiness & Prof . Code § 26200(a) (1). However, on S eptember 18, 2022, the Governor approved the Medicinal Cannabis Patients’ Right of Access A ct (Senate Bill No. 1186), which will go into effect on J anuary 1, 2024, and prohibit municipalities f rom enacting regulations that prohibit the sale, or enacting regulations that unreasonably restrict access of medicinal cannabis by delivery service to medicinal cannabis patients or their primary caregivers. Cal. Business & Prof . Code § 26322(a).

C ommercial Cannabis Regulation in Other M unicipalities:

As of February 2023, 238 out of the 539 municipalities in C alif ornia, or 44.2 percent (44.2%), allow at least one type of commercial cannabis activity (i.e., cultivation, manufacture, transportation, distribution/storage, and/or testing). Only 78 213 municipalities allow retail sales.

Of the 88 municipalities located in L os Angeles C ounty, 23, or 26.1 percent (26.1%), allow some form of commercial cannabis activity as shown in Table 1 below.

Table 1. Number of L os Angeles C ounty M unicipalities P ermitting C ommercial Cannabis Operations Allowed L imited Limited-M edical
Retail (Storefront)13 -2
Retail (Non-storefront)17 -2
Distribution 14 -3
M anufacturing/Warehousing 15 -3
Cultivation 7 6 2
Testing 14 -2

T here are a multitude of approaches on how a municipality may allow what f orms of commercial cannabis activity is permitted as demonstrated in Table 2 below. (See attached Table 2)

State Criteria for C ommercial Cannabis Activity D istances F rom S ensitive Uses :

As stated earlier, state law and regulations have largely left zoning regulation to local jurisdictions, with some exceptions set forth below:

Pursuant to the California Health and Safety C ode D ivision 10 (Unif orm C ontrolled S ubstances Act), C hapter 6 (Offenses and P enalties), Section 11362.768 (b):

No medicinal cannabis cooperative, collective, dispensary, operator, establishment, or provider who possesses, cultivates, or distributes medicinal cannabis pursuant to this article shall be located within a 600- f oot radius of a school.

Pursuant to C alif ornia B usiness and P rofessions C ode Division 10 (Cannabis, Chapter 5 (L icensing), S ection 26054:

(a) A licensee shall not sell alcoholic beverages or tobacco products on or at any premises licensed under this division.
(b) A premises licensed under this division shall not be located within a 600-f ootradius of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued, unless the department or a local jurisdiction specifies a different radius. T he distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety C ode, unless otherwise provided by law. (c) I t shall not be a violation of state or local law for a business engaged in the manuf acture of cannabis accessories to possess, transport, purchase, or otherwise obtain small amounts of cannabis or cannabis products as necessary to conduct research and development related to the cannabis accessories, provided the cannabis and cannabis products are obtained f rom a person licensed under this division permitted to provide or deliver the cannabis or cannabis products.
(d) I t shall not be a violation of state or local law for an agent of the department to possess, transport, or obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the department. (e) I t shall not be a violation of state or local law f or an agent of a state agency, as def ined in S ection 1100 of the Government C ode, or a local agency, as def ined in S ection 50001 of the G overnment C ode, to possess, transport, 79 o r obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the state or local agency.

Pursuant to California Business and Prof essions C ode Division 10 (Cannabis), Chapter 15 (A dvertising and Marketing Restrictions), Section 26152 (g):

A licensee shall not do any of the f ollowing: Advertise or market cannabis or cannabis products on an advertising sign within 1,000 f eet of a day care center, school providing instruction in kindergarten or any grades 1 to 12, inclusive, playground, or youth center.

F igure 1 below illustrates the locations of school and parks throughout the C ity, which require a 600-foot distance from commercial cannabis uses per state law. (See attached F igure 1)

Municipalities may choose the minimum distances and/or add other sensitive receptors, restrict the distances between businesses engaged in commercial cannabis activity, and limit the total number of licenses issued. B ell Gardens may also impose other greater restrictions, requirements, and development standards than those compelled by state law.

Exhibit 1 is a S ample Draft O rdinance that demonstrates how the C ity may choose to regulate cannabis retail use within the City’s existing Planning and Z oning Regulations (Title 9), and operating standards f or cannabis retail businesses in the City’s regulations for B usiness L icenses, Regulations and Taxes (Title 5). Figure 2 demonstrates where commercial cannabis activity could potentially be found to operate based on the locational and siting criteria presented in Exhibit 1. However, the proliferation of such uses would decrease if an ordinance also included criteria that prohibits the proliferation of such use in near proximity to each other, e.g., no cannabis use may be located within 500 feet of another cannabis use. P lease note that F igure 1 and Figure 2 are provided for discussion and illustrative purposes only. (S ee attached F igure 2)

Potential Revenue:

State Taxation
Pursuant to the A UMA , businesses engaged in commercial cannabis activity are imposed a state excise tax of 15% on cannabis retail sales ( https://www.cdtfa.ca.gov/formspubs/L866.pdf) and cannabis cultivation taxes of $10.08 per ounce of dry-weight flowers, $3.00 per ounce of dry-weight leaves, and $1.41 per ounce of f resh cannabis plant ( https://www.cdtfa.ca.gov/formspubs/L720.pdf) . Medicinal cannabis products f or eligible medical conditions are exempt f rom taxation.

W ithin L os A ngeles County, during the 4 th quarter of 2022, $351,353,273 in taxable sales were generated ( https://www.cdtfa.ca.gov/dataportal/dataset.htm?url=CannabisSalesByCounty) . State tax accounts for 15% excise tax, f or approximately $52,702,990.

L ocal Revenue
Many local municipalities generate revenue f rom taxes and/or development agreements that authorize the establishment of businesses proposing to engage in commercial cannabis activity. I n order to impose a tax on commercial cannabis sales, a ballot measure would need to be presented, adopted, and placed on the ballot for a future election.

Table 3 provides a sample of local tax rates in surrounding municipalities. A local example, the C ity of Maywood (“Maywood”), through its three (3) retail cannabis storefronts has generated approximately $2,400,000 annual cannabis sales tax, which is approximately $800,000 per retail cannabis storefront. Tierra West A dvisors, I nc. (Tierra 80 West) has indicated that the Maywood retail cannabis storefront average annual revenue is high due to Maywood being the first to the market with retail cannabis storef ronts. The increased number of retail cannabis storefronts in the surrounding cities will reduce these relatively high average retail cannabis storef ront sales tax amounts, in Maywood, to much lower amounts. Tierra West has indicated that it anticipates that future retail cannabis storefronts will generate approximately $250,000 to $450,000 per year in annual sales tax to local cities. S imilar to other retail businesses, gross sales are dependent upon location, notoriety, presentation, knowledge, cost, sales tax rates and other typical issues that impact general retail sales. Other cannabis activities that require licenses such as cultivation, manufacturing, delivery, and testing will generate much lower annual sales tax; generally, these activities in L os Angeles County are much smaller f acilities as compared to many production platf orms that are located in less populated areas where the larger growers and manufacturers are in operation. I t is anticipated that these other cannabis activities, will generate approximately $40,000 to $80,000 per year in gross sales tax per activity and license.

Table 3. S ample of Commercial C annabis Tax Rates in S urrounding M unicipalities City/County Adult-Use Retail Tax Rate (of gross receipts) L ong Beach 8%
B ellflower 5%
Maywood 10%
Cudahy 15%
Lynwood 5% + 1%

Another source of revenue f or municipalities is the ability to entire into development agreements. A pplicants proposed to engage in commercial cannabis activity often request to enter into a binding development agreement f or vested development rights in exchange f or public benefits. Unlike conditions of approval, which oftentimes contain exactions that are subject to the limitations in the Mitigation F ee Act, cities may request benefits such as a host fee or other monetary contributions that would be of benefit to the C ity and may be used in the general f und or f or a special purpose. A development agreement may also capture the recovery of costs, in the f orm of staf f time and legal fees spent, in order to execute the agreement.

Grant F unding
To streamline the process f or consumers to access legal, safe, and tested cannabis product, C alif ornia allocated $20 million in grant f unding (L ocal J urisdiction Retail A ccess G rant) to help local governments establish commercial cannabis activity regulations. D C C’s first $10 million round of f unding (Phase 1) is open, and local jurisdictions that plan to development and implement a cannabis retail licensing program are eligible to apply. T he f unding aims to reduce local barriers to access an already growing market, support the expansion of potential revenue, reduce the need for consumers to patronize the illegal operators, and reduce the size of the illicit market. P hase 1 awards will be announced by J une 20, 2023.

T he City submitted a grant application f or f unding to implement an ordinance to establish and regulate commercial cannabis activities. I f awarded funds, the C ity Council will be presented with a Council Resolution to accept such funding.

C O NC L US I O N:

A well-regulated industry consistent with state law could provide public benef it. T he City Council could direct staf f to draf t an ordinance regulating commercial cannabis activities. T he Planning Commission would be the initial body to review a commercial cannabis activity ordinance and make recommendations on the standards of operation, including locational criteria, and other development and design standards. A potential timeline, with critical steps that 81 must be taken in order to enact an ordinance is provided in Table 4 below. T he C ity C ouncil could also take no further action and receive and file this report.

Since state legislation is likely to increase the availability and prevalence of commercial cannabis activity and cannabis-related products, staf f recommends the C ity C ouncil direct staff to prepare an ordinance authorizing and regulating conditionally permitted commercial cannabis activity.

Table 4. P otential Timeline of E vents to Enact an Ordinance R egulating C ommercial C annabis Activities Projected Date and Anticipated Event
May 8, 2023- Present research report for direction on preparing an ordinance to the B ell Gardens C ity C ouncil.

May 11, 2023- P rovide P lanning Commission P ublic Hearing Notice to Newspaper for P ublication the following week.

May 18, 2023- Post P lanning Commission P ublic Hearing Notice at key City locations, and on all C ity social media outlets and City website; including publication in the Newspaper.

May 25, 2023- P rovide C ity C ouncil P ublic Hearing Notice to Newspaper f or P ublication the following week.

May 31, 2023- P lanning Commission – S pecial Meeting.

J une 1, 2023- City C ouncil Public Hearing Notice P ublication at key City locations, and on all City social media outlets and City website; including publication in the Newspaper.

J une 12, 2023- Public Hearing to introduce and conduct f irst reading of ordinance to the B ell Gardens C ity C ouncil.

J une 26, 2023- Public Hearing to conduct second reading of Ordinance and f inal adoption by the B ell G ardens City C ouncil.

J uly 1, 2023- S taff and Consultant to commence preparation of f orms and process.

J uly 26, 2023- C annabis Retail Ordinance in effect.

September 1, 2023- C ommence accepting applications (number of licenses and issuance policy on competitive, first-come, or lottery are to be determined by the direction provided by the Bell Gardens City Council).

F I S C AL I M PAC T:

I n anticipation of direction to prepare an ordinance responsive to impending state legislation in S B 1185, B ell Gardens staff applied f or grant f unding that, if awarded, would provide resources to develop and implement cannabis retailer licensing programs. I f it is decided to pursue an ordinance regulating commercial cannabis activity, funding would be made available to cover the cost of staf f time used in the preparation, introduction, and subsequent readings. I f no regulation is sought, any awarded f unding would be declined.

More inf ormation would be f orthcoming with research and analysis of options available through a potential development agreement process whereby B ell Gardens would be able to achieve public benef its and staff cost recovery associated with continued regulatory administrative and implementation ef f orts and duties for commercial cannabis activity. Development exactions are received to lessen, of f set, mitigate, or compensate for af f ected public interests. I n lieu of a tax, an annual host fee may be required through a development agreement.

AT TAC HM E NT S :

D escription
Exhibit 1 - S ample D R A F T C annabis Ordinance
Exhibit 2 - Compassionate Use A ct
Exhibit 3 - MC R S A
Exhibit 4 - Comprehensive Adult Use of Marijuana A ct
Exhibit 5 - Ordinance No. 823 - U-2009-06-08
Exhibit 6 - Ordinance No. 824 - U-2009-07-13
82 Exhibit 7 - Ordinance No. 835 - U-2010-05-10
Exhibit 8 - Ordinance No. 840 - 2011-04-25
Exhibit 9 - Ordinance No. 873 - 2016-01-25
Exhibit 10 - Ordinance No. 890 - 2018-09-10
Exhibit 11 - Minutes C C 2020-02-10 - Closed - Regular
Table 2 - L os Angeles C ounty Municipalities P ermitting C ommercial C annabis Activity F igure 1 - S chools and Parks L ocations
F igure 2: A pproximate Potential Commercial Cannabis A ctivity L ocations AP P RO V E D E L E C T RO NI C AL LY B Y:

Michael B . O'K elly, C ity Manager
S tephanie Vasquez, City Attorney and/or Susie A ltamirano, Assistant City Attorney Manuel Carrillo, Director of F inance and Administrative Services 83 1

**DRAFT – FOR DISCUSSION PURPOSES ONLY**
ORDINANCE NO. [XX]

AN ORDINANCE OF THE CITY OF BELL GARDENS
AMENDING TITLE 5 (BUSINESS LICENSES,

REGULATIONS AND TAXES) OF THE BELL GARDENS

MUNICIPAL CODE TO ADD LICENSING AND PERMIT

REQUIREMENTS FOR CANNABIS RETAIL BUSINESS,
AND TO AMEND TITLE 9 (ZONING AND PLANNING

REGULATIONS) TO CONDITIONALLY PERMIT A

CANNABIS RETAIL USE IN COMMERCIAL ZONES
WHEREAS, the City of Bell Gardens (“City”) is a general law city, incorporated under the laws of the State of California;
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries which promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; WHEREAS, the City’s General Plan (“General Plan”) articulates the community’s vision and is underscored by an effective Zoning Code in compliance with state law that protects the public health, safety and welfare, enacts regulatory and enforcement controls to defend safe neighborhood character and minimize potential for negative impacts on people, the community, and the environment;
WHEREAS, Chapter 9.21 (Prohibited Uses) of Title 9 (Zoning and Planning Regulations) of the Bell Gardens Municipal Code (“BGMC”) expressly prohibits all commercial cannabis activities within City limits;
WHEREAS, the City finds it necessary to amend the BGMC to remove certain prohibitions and add language to enact provisions that authorize appropriate use standards for commercial cannabis activities, specifically, cannabis retail activities; WHEREAS, the proposed zoning text amendment establishes land use and zoning regulations for Cannabis Retail, as specified, that are legal within the state, subject to strict compliance with state and local regulations;
WHEREAS, the proposed amendment would streamline review and processing of entitlement requests and promote accessibility and a convenient, safe, and sustainable way to connect customers to a desired commodified product and ensure community compatibility;
WHEREAS, the proposed zoning amendment would be consistent with the General Plan;
WHEREAS, Policy 3 of the General Plan’s Land Use Element promotes compatible commercial development to emphasize commercial identity and to enhance 84Exhibit 1

2 the appearance, potential economic vitality, and revitalization of commercial areas in the City;
WHEREAS, Policy 5 of the General Plan’s Land Use Element emphasizes the provision of an environment to stimulate local employment, property values, community stability, and the economic vitality of existing local businesses; WHEREAS, pursuant to California Government Code Section 65854, the Planning Commission conducted a duly noticed public hearing on this matter on [XX XX, 2023,] and adopted Planning Commission Resolution #2023-[XX] recommending to the City Council the approval of Zoning Code Amendment No. [2023-XXX (Ordinance No. XXX)]; and
WHEREAS, cannabis retail operations often take place in existing commercial or industrial buildings, and operate similarly to other retail operations, and would be subject to same development standards as other commercial operations, including but not limited to height, setbacks, and parking; but subject to more restrictive siting requirements and it can be seen with certainty that the regulation of cannabis retail sales will not cause a direct or indirect impact on the environment pursuant to the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and the CEQA Guidelines (Cal.

Code Regs., Title 14, § 15000 et seq.).

NOW THEREFORE, the City Council of the City of Bell Gardens does ordain as follows:

SECTION 1. Findings and Purpose. In adopting this Ordinance, the City Council finds and declares as follows:
i. The above recitals are true and correct and incorporated herein. ii. Ordinance No. [XX] serves the public health, safety and welfare of the residents and businesses within the City to regulate land use within the City. iii. Ordinance No. [XX] is consistent with the applicable Goals and Policies of the City’s General Plan.

SECTION 2. Chapter 9.21 (Prohibited Uses) of Title 9 (Zoning and Planning) of the BGMC is repealed in its entirety.

SECTION 3. The alphabetical list of definitions provided in Chapter 9.04 (Definitions) of Title 9 (Zoning and Planning Regulations) of the BGMC, is amended to add the following definitions:

Section 9.04.030 “C” definitions.
“Cannabis” shall mean all parts of the plant Cannabis Sativa Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or 85Exhibit 1

3 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. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
“Cannabis Cultivation” shall have the same meaning as Section 26001(m) of the Business and Professions Code and includes any commercial activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cannabis Cultivation, as defined herein, does not include the personal cultivation at a private residence of up to six plants as authorized by state law for personal use.
“Cannabis Manufacturing” shall have the same meaning as Section 26001(aj) of the Business and Professions Code and includes activities that compound, blend, extract, infuse, package, label or otherwise make or prepare a cannabis product.
“Cannabis Products” shall have the same meaning as in Section 11018.1 of the Health and Safety Code and includes such products that are intended for use on, or consumption by, an animal. Cannabis products are not considered food, as defined by Section 109935 of the Health and Safety Code, a drug, as defined by Section 109925 of the Health and Safety Code, or a cosmetic, as defined by Section 109900 of the Health and Safety Code.
“Cannabis Retail” shall have the same meaning as Section 26001(av) of the Business and Professions Code and includes a person who is engaged in the retail sale and delivery of cannabis or cannabis products to customers. Delivery of Cannabis and Cannabis Products shall also include the use of a technology platform by a Cannabis Retailer to conduct the commercial transfer of Cannabis and Cannabis Products.
“Cannabis State Licensee” shall have the same meaning as Section 26001(ac) of the Business and Professions Code and includes a person holding a license pursuant to the Medical and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) whether the holder of an A-license or M-license, as defined in Section 26001 of the Business and Professions Code.
“Cannabis Testing Laboratory” shall have the same meaning as Section 26001(ax) of the Business and Professions Code and includes a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is: (a) accredited by an accrediting body that is 86Exhibit 1

4 independent from all other persons involved in commercial cannabis activity in the state; and (b) licensed by the California Department of Cannabis Control, or statewide body charged with regulating commercial cannabis activities.

Section 9.04.250 “Y” definitions.
“Youth center” shall have the same meaning as Section 11353.1(e)(2) of the Health and Safety Code and includes any public or private facility that is primarily used to host recreation 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.

SECTION 4. The alphabetical list of land uses in Table 9.12A of Section 9.12.030 (Permitted land uses) of Chapter 9.12 (Commercial Zones) of Title 9 (Zoning and Planning Regulations) of the BGMC is amended to add the following new land use categories to the alphabetical list to read as follows:

Table 9.12A: Commercial Land Use Matrix
Uses M-U
Zone
C-S
Zone
C-3
Zone
C-4
Zone
C-M
Zone
Special Requirements
Cannabis
Cultivation1

Cannabis
Manufacturing

Cannabis Retail C C C C C Refer to BGMC, Chapter

9.20 for additional
development standards
for Cannabis Retail.

Refer to BGMC, Chapter

5.12 for business
regulatory permit and
operating standards for
Cannabis Retail.

Cannabis Testing
Laboratory

SECTION 5. The alphabetical list of land uses in Table 9.14A of Section 9.14.030 (Permitted land uses) of Chapter 9.14 (Industrial Zones) of Title 9 (Zoning and Planning

1 This use excludes the cultivation of up to six cannabis plants, as permitted by state law, for personal use. 87Exhibit 1

5 Regulations) of the BGMC is amended to add the following new land use categories of the alphabetical list to read as follows:

Table 9.14A: Industrial Land Use Matrix
Uses M-1 Special Requirements
Cannabis Cultivation1
Cannabis Manufacturing
Cannabis Retail C Refer to BGMC, Chapter 9.20
for additional development
standards for Cannabis Retail.

Refer to BGMC, Chapter 5.12
for business regulatory permit
and operating standards for
Cannabis Retail.

Cannabis Testing Laboratory

SECTION 6. Section 9.20.160 of Chapter 9.20 (Special Uses and Applicable Standards) of Title 9 (Zoning and Planning Regulations) of the BGMC, is added to read:

Chapter 9.20 Special Uses and Appliable Standards

9.20.160 Cannabis Retail – Conditional use.

In addition to compliance with all other state and local statutes, ordinances and regulations, the following regulations shall apply to Cannabis Retailers where they are permitted by conditional use permit:

A. Location. The following locational requirements shall apply to all Cannabis Retailers:

1. Use Prohibited in the Civic Center Overlay District. A Cannabis Retail use shall not be permitted within the Civic Center Overlay District (“CCOD”) irrespective of the underlying zoning.

2. Proximity to Sensitive Uses. A Cannabis Retail use shall not be located within a [600-foot] radius of a day care center, youth center, school, or parks as defined in this title, that is existing at the time an application for a conditional use permit is submitted.

1 This use excludes the cultivation of up to six cannabis plants, as permitted by state law, for personal use. 88Exhibit 1

6 3. Proximity to Cannabis Retailers. A Cannabis Retailer shall not be located within a [250-foot] radius of another Cannabis Retailer that is existing at the time an application for a conditional use permit is submitted.

B. Additional Development and Design Standards for Cannabis Retailers. The following development and design standards shall apply to all Cannabis Retailers unless more restrictive conditions are imposed as a condition of approval:

1. Parking. A Cannabis Retail use shall be subject to the “Business general” parking requirements, as set forth in Section 9.38.050(C)(2), Parking and Facilities Matrix.

2. Signage. All signage shall comply with the requirements set forth in Chapter 9.40, Signs.

3. Windows. Windows facing the street frontage shall be clear untinted glass. Mirrored, reflective, or tinted glass shall only be permitted as an architectural or decorative accent and shall not comprise more than 20 percent of the window.

4. Decorative Railings and Grilles. Decorative railings and grilles that are placed in front of or behind windows shall be at least 75 percent open to perpendicular view and no more than six feet in height. Security gates and grilles shall be prohibited on the exterior of any structure.

C. Additional Application Requirements. Applications for a conditional use permit to permit a Cannabis Retail use shall also provide the following documentation, in addition to the requirements set forth in Title 9, Chapter 9.50, Section 9.50.030 of the BGMC:

1. A copy of the state Cannabis Retail license (Type 9 or Type 10, as defined in the California Code of Regulations) issued by the Department of Cannabis Control (“DCC”).

2. A signed affidavit stating that upon a conditional approval of the Cannabis Retail use, that applicant will apply for and obtain a business regulatory permit for Cannabis Retailer, pursuant to Title 5, Chapter 5.12 of the BGMC, prior to commencing operations of the Cannabis Retail use.

3. A radius map indicating the location of all Cannabis Retailers, day care centers, youth centers, and schools existing within a [1,500 foot] radius of the subject site at the time of application submittal.

D. Duration. The life of a conditional use permit shall not exceed eighteen (18) months from the date of issuance of the first building permit. For the purposes of this section, a “building permit” shall mean a permit issued by the Building and Safety Division for the development of a property or structure, inclusive of 89Exhibit 1

7 demolition; grading; building; electrical, plumbing, or mechanical upgrades; or change of occupancy. An applicant who wishes to obtain an approval for a Cannabis Retail use in exceedance of eighteen (18) months may request a development agreement.

E. Upon consideration of the conditional use permit, the planning commission may also impose additional conditions of approval.

SECTION 7. The alphabetical list of definitions provided in Section 5.12.015 (Permit – Designation of business requiring) of Chapter 5.12 (Permits – Issuance and Revocation) of Title 5 (Business Licenses, Regulations and Taxes) of the BGMC, is amended to add the following definitions:

G. Cannabis Retail. As defined in Section 9.04.030 of the Bell Gardens Zoning Code;
H. Cannabis Products. As defined in Section 9.04.030 of the Bell Gardens Zoning Code;
K. Head shop. A business is deemed to be a head shop if it sells or displays for the purpose of sale any device, contrivance, instrument or paraphernalia for smoking or injecting, or consuming marijuana cannabis, hashish, PCP or any controlled substance, as defined in the Business and Professions Code or the Health and Safety Code of the state of California, other than prescription drugs and devices to ingest or inject prescription drugs, as well as roach clips, and cigarette papers and rollers designed for the smoking of the foregoing; SECTION 8. Chapter 5.64 (Retail Cannabis Business License) is added to Title 5 (Business Licenses, Regulations and Taxes) of the BGMC to read:

5.64.010 Purpose and intent.

It is the purpose and intent of this Chapter to regulate the operations of Cannabis Retail businesses, which may pose public safety risk and quality of life concerns if not properly regulated. It is the City’s goal to address concerns related to the business aspect of commercial cannabis activities through the City’s police powers. Therefore, the City imposes the following objective standards for applications, approvals, denials, and permit revocations, as well as terms for security, odor, inspection, and grounds for revocation of a Cannabis Retail business regulatory permit.

5.64.020 Retail Cannabis License Required.

A. All Cannabis Retail businesses are subject to the business regulatory permit requirements of this Chapter, as well as all other applicable ordinances of the City and laws of the state of California.
90Exhibit 1

8 B. It shall be unlawful for any person to establish, operate, engage in, conduct, or carry on any Cannabis Retail within the City unless the person first obtains, and continues to maintain in full force and effect, a Cannabis Retail business regulatory permit, as required herein.

5.64.030 Permit Application Contents.

In addition to the application requirements in Section 5.12.020, an application for a Cannabis Retailer permit shall submit:

A. A planning commission Resolution and associated conditions of approval for a Cannabis Retailer use at the location proposed for the Cannabis Retailer business regulatory permit.

B. A valid license (Type 9 or Type 10, as defined in the California Code of Regulations, Title 4, Division 19) issued by the Department of Cannabis Control (“DCC”), accompanied by a statement signed under penalty of perjury, affirming that the license is valid and is in good standing with the DCC, and is not subject to pending or active enforcement action, including but not limited to including unpaid fines, outstanding citations, license suspension, or license revocation.

C. A security plan indicating the Cannabis Retailer shall provide adequate security and lighting on-site to ensure the safety of persons and protect the premises from theft at all times in conformance with the security plan.

D. A permit application shall not be processed until all of the foregoing documentation and application requirements set forth in Section 5.12.020 have been satisfied.

5.64.040 Operating Standards.

All Cannabis Retail businesses in the City shall operate in conformance with the following operating requirements (“Operating Standards”):

A. No Cannabis Retailer may commence operations without obtaining a permit required by this Chapter; a conditional use permit for a Cannabis Retailer use, the appropriate licenses issued by the DCC, and any other applicable governmental agency approvals.

B. Cannabis Retail businesses shall provide adequate security and lighting on site to ensure the safety of persons and protect the premises from theft at all times in conformance with the security plan submitted with the business license application.

C. All security guards employed by a Cannabis Retail business shall be licensed and possess a valid Department of Consumer Affairs “Security Guard Card” at all times.
91Exhibit 1

9 D. Cannabis Retailer shall strictly comply with the state requirements, including but not limited to the Medical and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) and related regulations as enacted by the DCC and amended from time to time.

E. An odor absorbing ventilation and exhaust system shall be installed so that odor generated inside the business is not detected inside the business.

F. Cannabis Retailers shall not engage in Cannabis Cultivation, Cannabis Manufacturing, Cannabis Laboratory Testing, as defined in Title 9, Chapter 9.04 of the BGMC. All such business uses are strictly prohibited within City limits.

G. On-site consumption of Cannabis and Cannabis Products shall be prohibited.

H. Cannabis Retail businesses shall post a notice in a conspicuous location, readily visible to persons entering the premises notifying patrons that entry onto the premises by persons under the age of twenty-one (21) is prohibited.

I. Cannabis Retail businesses shall comply with all conditions of approval stated in the conditional use permit permitting the Cannabis Retail use.

J. City Code Compliance Officers, the Bell Gardens Police Department, Los Angeles County Fire Department staff, or other agents and employees of the City shall be granted access to the site for the purpose of determining compliance with the Operating Standards contained herein.

K. A Cannabis Retail business shall commence operations within one year of issuance of a business regulatory permit.

5.64.050 Suspension or Revocation – Grounds.

A. No person or entity shall dispense, distribute, sell, convey, exchange or give away cannabis in the City, except in compliance with the provisions of this Chapter; Title 9 of the BGMC; and any other conditions imposed by the City, including, but not limited to, a conditional use permit. Dispensing, distributing, selling, conveying, exchanging or giving away Cannabis within the City limits without a valid permit shall be a misdemeanor.

B. Failure to comply with the Operating Standards contained herein, shall be considered a nuisance per se and shall be subject to enforcement action, including but not limited to business regulatory permit suspension or revocation.

C. Failure to pay all applicable taxes and fees to the City for a three-month period shall constitute grounds for the suspension or revocation of a Cannabis Retail business regulatory permit in accordance with provisions set forth in Title 5, Chapter 5.12.
92Exhibit 1

10 D. The assignment or attempt to assign or transfer any business regulatory permit issued pursuant to this Chapter shall be unlawful.

E. A Cannabis Retailer licensed and operating under this Chapter shall have a current, valid state license for any and all activity which requires a state license under state law, including, without limitation, a seller’s permit from the State Department of Tax and Fee Administration and shall comply with all state laws and regulations. Failure to comply with the state licensing requirements and state laws and regulations related to commercial cannabis activity shall be a nuisance per se and shall be subject to enforcement action, including but not limited to suspension of revocation of the business regulatory permit.

F. A Cannabis Retailer shall post all state-issued licenses, and licenses and permits issued pursuant to this Municipal Code in a conspicuous place. Failure to maintain and post a current, valid business regulatory permit is grounds for revocation of a Cannabis Retail business regulatory permit issued pursuant to this chapter.

5.64.060 Unauthorized Cannabis Operations – Enforcement.

A. Any person engaged in a Cannabis Retailer operation, without a regulatory business permit, shall be considered a nuisance per se and shall be subject to enforcement action, including but not limited to prosecution of a misdemeanor.

B. Any person, including a licensed Cannabis Retailer, engaged in Cannabis Cultivation, Cannabis Manufacturing, or Cannabis Laboratory Testing, as defined in Title 9, Chapter 9.04 of the BGMC, shall be considered a nuisance per se and shall be subject to enforcement action, including but not limited to prosecution of a misdemeanor.

5.64.070 City Fees.

The City Council may adopt fees related to the review, issuance, and enforcement of Cannabis Retail business regulatory permits.

SECTION 9. In accordance with CEQA and CEQA Guidelines Section 15061(b)(3), it can be seen with certainty that the adoption of Ordinance No. [XX] would not result in a significant environmental impact and is therefore exempt from CEQA.

SECTION 10. 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, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.
93Exhibit 1

11 SECTION 11. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause this Ordinance to be published and/or posted as required by law, which shall take full force and effect thirty days from its adoption.

PASSED, APPROVED AND ADOPTED this [XX] day of [XX], 2023.

THE CITY OF BELL GARDENS

________________________________
Alejandra Cortez, Mayor

APPROVED AS TO FORM: ATTEST:

________________________________ ________________________________ Stephanie Vasquez Daisy Gomez
City Attorney City Clerk

94Exhibit 1

State of California

HEALTH AND SAFETY CODE
Section 11362.5
11362.5. (a)   This section shall be known and may be cited as the Compassionate Use Act of 1996.
(b)   (1)   The people of the State of California hereby find and declare that the purposes of the Compassionate Use Act of 1996 are as follows:
(A)   To ensure that seriously ill Californians have the right to obtain and use marijuana for medical purposes where that medical use is deemed appropriate and has been recommended by a physician who has determined that the person’s health would benefit from the use of marijuana in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which marijuana provides relief.
(B)   To ensure that patients and their primary caregivers who obtain and use marijuana for medical purposes upon the recommendation of a physician are not subject to criminal prosecution or sanction.
(C)   To encourage the federal and state governments to implement a plan to provide for the safe and affordable distribution of marijuana to all patients in medical need of marijuana.
(2)   Nothing in this section shall be construed to supersede legislation prohibiting persons from engaging in conduct that endangers others, nor to condone the diversion of marijuana for nonmedical purposes.
(c)   Notwithstanding any other provision of law, no physician in this state shall be punished, or denied any right or privilege, for having recommended marijuana to a patient for medical purposes.
(d)   Section 11357, relating to the possession of marijuana, and Section 11358, relating to the cultivation of marijuana, shall not apply to a patient, or to a patient’s primary caregiver, who possesses or cultivates marijuana for the personal medical purposes of the patient upon the written or oral recommendation or approval of a physician.
(e)   For the purposes of this section, “primary caregiver” means the individual designated by the person exempted under this section who has consistently assumed responsibility for the housing, health, or safety of that person. (Added November 5, 1996, by initiative Proposition 215, Sec. 1.) 95Exhibit 2

Comprehensive
Medical Cannabis Regulation and Safety Act‐ 2016
Includes 2015 bills SB 643, AB 266, AB 243 and 2016 bills SB 837, AB 21, AB 2516 and AB 2679 December 13, 2016; this document may not contain the most recent statute language

Page 1 ends

BUSINESS AND PROFESSIONS CODE
GENERAL PROVISIONS

27. (a) Each entity specified in subdivisions (c), (d), and (e) shall provide on the Internet information regarding the status of every license issued by that entity in accordance with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code). The public information to be provided on the Internet shall include information on suspensions and revocations of licenses issued by the entity and other related enforcement action, including accusations filed pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) taken by the entity relative to persons, businesses, or facilities subject to licensure or regulation by the entity. The information may not include personal information, including home telephone number, date of birth, or social security number. Each entity shall disclose a licensee’s address of record. However, each entity shall allow a licensee to provide a post office box number or other alternate address, instead of his or her home address, as the address of record. This section shall not preclude an entity from also requiring a licensee, who has provided a post office box number or other alternative mailing address as his or her address of record, to provide a physical business address or residence address only for the entity’s internal administrative use and not for disclosure as the licensee’s address of record or disclosure on the Internet. (b) In providing information on the Internet, each entity specified in subdivisions (c) and (d) shall comply with the Department of Consumer Affairs’ guidelines for access to public records. (c) Each of the following entities within the Department of Consumer Affairs shall comply with the requirements of this section:
(1) The Board for Professional Engineers, Land Surveyors, and Geologists shall disclose information on its registrants and licensees.
(2) The Bureau of Automotive Repair shall disclose information on its licensees, including auto repair dealers, smog stations, lamp and brake stations, smog check technicians, and smog inspection certification stations. (3) The Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation shall disclose information on its licensees and registrants, including major appliance repair dealers, combination dealers (electronic and appliance), electronic repair dealers, service contract sellers, and service contract administrators. (4) The Cemetery and Funeral Bureau shall disclose information on its licensees, including cemetery brokers, cemetery salespersons, cemetery managers, crematory managers, cemetery authorities, crematories, cremated remains disposers, embalmers, funeral establishments, and funeral directors. (5) The Professional Fiduciaries Bureau shall disclose information on its licensees. (6) The Contractors’ State License Board shall disclose information on its licensees and registrants in accordance with Chapter 9 (commencing with Section 7000) of Division 3. In addition to information related to licenses as specified in subdivision (a), the board shall also disclose information provided to the board by the Labor Commissioner pursuant to Section 98.9 of the Labor Code.
(7) The Bureau for Private Postsecondary Education shall disclose information on private postsecondary institutions under its jurisdiction, including disclosure of notices to comply issued pursuant to Section 94935 of the Education Code.
(8) The California Board of Accountancy shall disclose information on its licensees and registrants. (9) The California Architects Board shall disclose information on its licensees, including architects and landscape architects.
(10) The State Athletic Commission shall disclose information on its licensees and registrants. (11) The State Board of Barbering and Cosmetology shall disclose information on its licensees. (12) The State Board of Guide Dogs for the Blind shall disclose information on its licensees and registrants. (13) The Acupuncture Board shall disclose information on its licensees. (14) The Board of Behavioral Sciences shall disclose information on its licensees, including licensed marriage and family therapists, licensed clinical social workers, licensed educational psychologists, and licensed professional clinical counselors.
(15) The Dental Board of California shall disclose information on its licensees. (16) The State Board of Optometry shall disclose information regarding certificates of registration to practice optometry, statements of licensure, optometric corporation registrations, branch office licenses, and fictitious name permits of its licensees.
96Exhibit 3

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(17) The Board of Psychology shall disclose information on its licensees, including psychologists, psychological assistants, and registered psychologists.
(d) The State Board of Chiropractic Examiners shall disclose information on its licensees. (e) The Structural Pest Control Board shall disclose information on its licensees, including applicators, field representatives, and operators in the areas of fumigation, general pest and wood destroying pests and organisms, and wood roof cleaning and treatment.
(f) The Bureau of Medical Cannabis Regulation shall disclose information on its licensees. (g) “Internet” for the purposes of this section has the meaning set forth in paragraph (6) of subdivision (f) of Section 17538.

DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS
CHAPTER 1. THE DEPARTMENT (100 ‐144.5)
101.

The department is comprised of the following:
(a) The Dental Board of California.
(b) The Medical Board of California.
(c) The State Board of Optometry.
(d) The California State Board of Pharmacy.
(e) The Veterinary Medical Board.
(f) The California Board of Accountancy.
(g) The California Architects Board.
(h) The Bureau of Barbering and Cosmetology.
(i) The Board for Professional Engineers and Land Surveyors. (j) The Contractors’ State License Board.
(k) The Bureau for Private Postsecondary Education.
(l) The Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation. (m) The Board of Registered Nursing.
(n) The Board of Behavioral Sciences.
(o) The State Athletic Commission.
(p) The Cemetery and Funeral Bureau.
(q) The State Board of Guide Dogs for the Blind.
(r) The Bureau of Security and Investigative Services.
(s) The Court Reporters Board of California.
(t) The Board of Vocational Nursing and Psychiatric Technicians. (u) The Landscape Architects Technical Committee.
(v) The Division of Investigation.
(w) The Bureau of Automotive Repair.
(x) The Respiratory Care Board of California.
(y) The Acupuncture Board.
(z) The Board of Psychology.
(aa) The California Board of Podiatric Medicine.
(ab) The Physical Therapy Board of California.
(ac) The Arbitration Review Program.
(ad) The Physician Assistant Committee.
(ae) The Speech‐Language Pathology and Audiology Board. (af) The California Board of Occupational Therapy.
(ag) The Osteopathic Medical Board of California.
(ah) The Naturopathic Medicine Committee.
(ai) The Dental Hygiene Committee of California.
(aj) The Professional Fiduciaries Bureau.
(ak) The State Board of Chiropractic Examiners.
(al) The Bureau of Real Estate.
(am) The Bureau of Real Estate Appraisers.
(an) The Structural Pest Control Board.
(ao) The Bureau of Medical Cannabis Regulation.
(ap) Any other boards, offices, or officers subject to its jurisdiction by law.

97Exhibit 3

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144.
(a) Notwithstanding any other law, an agency designated in subdivision (b) shall require an applicant to furnish to the agency a full set of fingerprints for purposes of conducting criminal history record checks. Any agency designated in subdivision (b) may obtain and receive, at its discretion, criminal history information from the Department of Justice and the United States Federal Bureau of Investigation.
(b) Subdivision (a) applies to the following:
(1) California Board of Accountancy.
(2) State Athletic Commission.
(3) Board of Behavioral Sciences.
(4) Court Reporters Board of California.
(5) State Board of Guide Dogs for the Blind.
(6) California State Board of Pharmacy.
(7) Board of Registered Nursing.
(8) Veterinary Medical Board.
(9) Board of Vocational Nursing and Psychiatric Technicians. (10) Respiratory Care Board of California.
(11) Physical Therapy Board of California.
(12) Physician Assistant Committee of the Medical Board of California. (13) Speech‐Language Pathology and Audiology and Hearing Aid Dispenser Board. (14) Medical Board of California.
(15) State Board of Optometry.
(16) Acupuncture Board.
(17) Cemetery and Funeral Bureau.
(18) Bureau of Security and Investigative Services.
(19) Division of Investigation.
(20) Board of Psychology.
(21) California Board of Occupational Therapy.
(22) Structural Pest Control Board.
(23) Contractors’ State License Board.
(24) Naturopathic Medicine Committee.
(25) Professional Fiduciaries Bureau.
(26) Board for Professional Engineers, Land Surveyors, and Geologists. (27) Bureau of Medical Cannabis Regulation.
(c) For purposes of paragraph (26) of subdivision (b), the term “applicant” shall be limited to an initial applicant who has never been registered or licensed by the board or to an applicant for a new licensure or registration category.

DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS
CHAPTER 3. FUNDS OF THE DEPARTMENT (200 – 211)
205.1.

Notwithstanding subdivision (a) of Section 205, the Medical Cannabis Regulation and Safety Act Fund is a special fund within the Professions and Vocations Fund, and is subject to subdivision (b) of Section 205.

DIVISION 2. HEALING ARTS
CHAPTER 5. MEDICINE
ARTICLE 12. ENFORCEMENT (2220 ‐2319)
2220.05.
(a) In order to ensure that its resources are maximized for the protection of the public, the Medical Board of California shall prioritize its investigative and prosecutorial resources to ensure that physicians and surgeons representing the greatest threat of harm are identified and disciplined expeditiously. Cases involving any of the following allegations shall be handled on a priority basis, as follows, with the highest priority being given to cases in the first paragraph:
(1) Gross negligence, incompetence, or repeated negligent acts that involve death or serious bodily injury to one or more patients, such that the physician and surgeon represents a danger to the public. (2) Drug or alcohol abuse by a physician and surgeon involving death or serious bodily injury to a patient. (3) Repeated acts of clearly excessive prescribing, furnishing, or administering of controlled substances, or repeated acts of prescribing, dispensing, or furnishing of controlled substances without a good faith prior examination of the patient and medical reason therefor. However, in no event shall a physician and surgeon prescribing, 98Exhibit 3

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furnishing, or administering controlled substances for intractable pain consistent with lawful prescribing, including, but not limited to, Sections 725, 2241.5, and 2241.6 of this code and Sections 11159.2 and 124961 of the Health and Safety Code, be prosecuted for excessive prescribing and prompt review of the applicability of these provisions shall be made in any complaint that may implicate these provisions. (4) Repeated acts of clearly excessive recommending of cannabis to patients for medical purposes, or repeated acts of recommending cannabis to patients for medical purposes without a good faith prior examination of the patient and a medical reason for the recommendation.
(5) Sexual misconduct with one or more patients during a course of treatment or an examination. (6) Practicing medicine while under the influence of drugs or alcohol. (b) The board may by regulation prioritize cases involving an allegation of conduct that is not described in subdivision (a).

Those cases prioritized by regulation shall not be assigned a priority equal to or higher than the priorities established in subdivision (a).
(c) The Medical Board of California shall indicate in its annual report mandated by Section 2312 the number of temporary restraining orders, interim suspension orders, and disciplinary actions that are taken in each priority category specified in subdivisions (a) and (b).

2241.5.
(a) A physician and surgeon may prescribe for, or dispense or administer to, a person under his or her treatment for a medical condition dangerous drugs or prescription controlled substances for the treatment of pain or a condition causing pain, including, but not limited to, intractable pain.
(b) (b) No physician and surgeon shall be subject to disciplinary action for prescribing, dispensing, or administering dangerous drugs or prescription controlled substances in accordance with this section. (c) This section shall not affect the power of the board to take any action described in Section 2227 against a physician and surgeon who does any of the following:
(1) Violates subdivision (b), (c), or (d) of Section 2234 regarding gross negligence, repeated negligent acts, or incompetence.
(2) Violates Section 2241 regarding treatment of an addict. (3) Violates Section 2242 or 2525.3 regarding performing an appropriate prior examination and the existence of a medical indication for prescribing, dispensing, or furnishing dangerous drugs or recommending medical cannabis. (4) Violates Section 2242.1 regarding prescribing on the Internet. (5) Fails to keep complete and accurate records of purchases and disposals of substances listed in the California Uniform Controlled Substances Act (Division 10 (commencing with Section 11000) of the Health and Safety Code) or controlled substances scheduled in the federal Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. Sec. 801 et seq.), or pursuant to the federal Comprehensive Drug Abuse Prevention and Control Act of 1970. A physician and surgeon shall keep records of his or her purchases and disposals of these controlled substances or dangerous drugs, including the date of purchase, the date and records of the sale or disposal of the drugs by the physician and surgeon, the name and address of the person receiving the drugs, and the reason for the disposal or the dispensing of the drugs to the person, and shall otherwise comply with all state recordkeeping requirements for controlled substances.
(6) Writes false or fictitious prescriptions for controlled substances listed in the California Uniform Controlled Substances Act or scheduled in the federal Comprehensive Drug Abuse Prevention and Control Act of 1970. (7) Prescribes, administers, or dispenses in violation of this chapter, or in violation of Chapter 4 (commencing with Section 11150) or Chapter 5 (commencing with Section 11210) of Division 10 of the Health and Safety Code. (d) A physician and surgeon shall exercise reasonable care in determining whether a particular patient or condition, or the complexity of a patient’s treatment, including, but not limited to, a current or recent pattern of drug abuse, requires consultation with, or referral to, a more qualified specialist. (e) Nothing in this section shall prohibit the governing body of a hospital from taking disciplinary actions against a physician and surgeon pursuant to Sections 809.05, 809.4, and 809.5. 2242.1.
(a) No person or entity may prescribe, dispense, or furnish, or cause to be prescribed, dispensed, or furnished, dangerous drugs or dangerous devices, as defined in Section 4022, on the Internet for delivery to any person in this state, without an appropriate prior examination and medical indication, except as authorized by Section 2242. (b) Notwithstanding any other provision of law, a violation of this section may subject the person or entity that has committed the violation to either a fine of up to twenty‐five thousand dollars ($25,000) per occurrence pursuant to a citation issued by the board or a civil penalty of twenty‐five thousand dollars ($25,000) per occurrence. (c) The Attorney General may bring an action to enforce this section and to collect the fines or civil penalties authorized by subdivision (b).
99Exhibit 3

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(d) For notifications made on and after January 1, 2002, the Franchise Tax Board, upon notification by the Attorney General or the board of a final judgment in an action brought under this section, shall subtract the amount of the fine or awarded civil penalties from any tax refunds or lottery winnings due to the person who is a defendant in the action using the offset authority under Section 12419.5 of the Government Code, as delegated by the Controller, and the processes as established by the Franchise Tax Board for this purpose. That amount shall be forwarded to the board for deposit in the Contingent Fund of the Medical Board of California.
(e) If the person or entity that is the subject of an action brought pursuant to this section is not a resident of this state, a violation of this section shall, if applicable, be reported to the person’s or entity’s appropriate professional licensing authority.
(f) Nothing in this section shall prohibit the board from commencing a disciplinary action against a physician and surgeon pursuant to Section 2242 or 2525.3.

ARTICLE 25. RECOMMENDING MEDICAL CANNABIS (2525 ‐2525.5) 2525.
(a) It is unlawful for a physician and surgeon who recommends cannabis to a patient for a medical purpose to accept, solicit, or offer any form of remuneration from or to a facility issued a state license pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8, if the physician and surgeon or his or her immediate family have a financial interest in that facility.
(b) For the purposes of this section, “financial interest” shall have the same meaning as in Section 650.01. A violation of this section shall be a misdemeanor punishable by up to one year in county jail and a fine of up to five thousand dollars ($5,000) or by civil penalties of up to five thousand dollars ($5,000) and shall constitute unprofessional conduct. (c) A violation of this section shall be a misdemeanor punishable by up to one year in county jail and a fine of up to five thousand dollars ($5,000) or by civil penalties of up to five thousand dollars ($5,000) and shall constitute unprofessional conduct.

2525.1.

The Medical Board of California shall consult with the California Marijuana Research Program, known as the Center for Medicinal Cannabis Research, authorized pursuant to Section 11362.9 of the Health and Safety Code, on developing and adopting medical guidelines for the appropriate administration and use of medical cannabis.

2525.2.

An individual who possesses a license in good standing to practice medicine or osteopathy issued by the Medical Board of California or the Osteopathic Medical Board of California shall not recommend medical cannabis to a patient, unless that person is the patient’s attending physician, as defined by subdivision (a) of Section 11362.7 of the Health and Safety Code.

2525.3.

Recommending medical cannabis to a patient for a medical purpose without an appropriate prior examination and a medical indication constitutes unprofessional conduct.

2525.4.

It is unprofessional conduct for any attending physician recommending medical cannabis to be employed by, or enter into any other agreement with, any person or entity dispensing medical cannabis.

2525.5.
(a) A person shall not distribute any form of advertising for physician recommendations for medical cannabis in California unless the advertisement bears the following notice to consumers:

NOTICE TO CONSUMERS: The Compassionate Use Act of 1996 ensures that seriously ill Californians have the right to obtain and use cannabis for medical purposes where medical use is deemed appropriate and has been recommended by a physician who has determined that the person’s health would benefit from the use of medical cannabis.

Recommendations must come from an attending physician as defined in Section 11362.7 of the Health and Safety Code. 100Exhibit 3

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Cannabis is a Schedule I drug according to the federal Controlled Substances Act. Activity related to cannabis use is subject to federal prosecution, regardless of the protections provided by state law. (b) Advertising for attending physician recommendations for medical cannabis shall meet all of the requirements in Section 651. Price advertising shall not be fraudulent, deceitful, or misleading, including statements or advertisements of bait, discounts, premiums, gifts, or statements of a similar nature.

DIVISION 8. SPECIAL BUSINESS REGULATIONS
CHAPTER 3.5. MEDICAL CANNABIS REGULATION AND SAFETY ACT ARTICLE 1. DEFINITIONS (19300 – 19300.7)
19300.

This act shall be known and may be cited as the Medical Cannabis Regulation and Safety Act. 19300.5.

For purposes of this chapter, the following definitions shall apply:
(a)  “Accrediting body” means a nonprofit organization that requires conformance to ISO/IEC 17025 requirements and is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement for Testing. (b)  “Applicant,” for purposes of Article 4 (commencing with Section 19320), includes the following:
(1)  Owner or owners of the proposed premises, including all persons or entities having ownership interest other than a security interest, lien, or encumbrance on property that will be used by the premises. (2)  If the owner is an entity, “owner” includes within the entity each person participating in the direction, control, or management of, or having a financial interest in, the proposed premises. (3)  If the applicant is a publicly traded company, “owner” means the chief executive officer or any person or entity with an aggregate ownership interest of 5 percent or more.
(c)  “Batch” means a specific quantity of homogeneous medical cannabis or medical cannabis product and is one of the following types:
(1)  “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals, and harvested at the same time. (2)  “Manufactured cannabis batch” means either:
(A)  An amount of cannabis concentrate or extract produced in one production cycle using the same extraction methods and standard operating procedures, and is from the same harvest batch. (B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(d)  “Bureau” means the Bureau of Medical Cannabis Regulation within the Department of Consumer Affairs. (e)  “Cannabinoid” or “phytocannabinoid” means a chemical compound that is unique to and derived from cannabis. (f)  “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” also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. “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. For the purpose of this chapter, “cannabis” does not mean “industrial hemp” as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.
(g)  “Cannabis concentrate” means manufactured 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 chapter. 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. (h)  “Certificate of accreditation” means a certificate issued by an accrediting body to a testing laboratory . (i)  “Chief” means Chief of the Bureau of Medical Cannabis Regulation within the Department of Consumer Affairs. (j)  “Commercial cannabis activity” includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of medical cannabis or a medical cannabis product, except as set forth in Section 19319, related to qualifying patients and primary caregivers. (k)  “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of medical cannabis.
101Exhibit 3

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(l)  “Cultivation site” means a location where medical cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities. (m)  “Delivery” means the commercial transfer of medical cannabis or medical cannabis products from a dispensary, up to an amount determined by the bureau to a primary caregiver or qualified patient as defined in Section 11362.7 of the Health and Safety Code, or a testing laboratory. “Delivery” also includes the use by a dispensary of any technology platform owned and controlled by the dispensary, or independently licensed under this chapter, that enables qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed dispensary of medical cannabis or medical cannabis products.
(n)  “Dispensary” means a premises where medical cannabis, medical cannabis products, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to Section 19340, medical cannabis and medical cannabis products as part of a retail sale.
(o)  “Dispensing” means any activity involving the retail sale of medical cannabis or medical cannabis products from a dispensary.
(p)  “Distribution” means the procurement, sale, and transport of medical cannabis and medical cannabis products between entities licensed pursuant to this chapter.
(q)  “Distributor” means a person licensed under this chapter to engage in the business of purchasing medical cannabis from a licensed cultivator, or medical cannabis products from a licensed manufacturer, for sale to a licensed dispensary. (r)  “Dried flower” means all dead medical cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.
(s)  “Edible cannabis product” means manufactured cannabis 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 medical 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. (t)  “Fund” means the Medical Cannabis Regulation and Safety Act Fund established pursuant to Section 19351. (u)  “Identification program” means the universal identification certificate program for commercial medical cannabis activity authorized by this chapter.
(v)  “Labeling” means any label or other written, printed, or graphic matter upon a medical cannabis product, or upon its container or wrapper, or that accompanies any medical cannabis product. (w)  “Labor peace agreement” means an agreement between a licensee and a bona fide labor organization that, at a minimum, protects the state’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant’s business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization. (x)  “Licensee” means a person issued a state license under this chapter to engage in commercial cannabis activity. (y)  “Licensing authority” means the state agency responsible for the issuance, renewal, or reinstatement of the license. (z)  “Live plants” means living medical cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.
(aa) “Local license, permit, or other authorization” means an official document granted by a local jurisdiction that specifically authorizes a person to conduct commercial cannabis activity in the local jurisdiction. (ab) “Lot” means a batch or a specifically identified portion of a batch. (ac) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. (ad) “Manufacturer” means a person that conducts the production, preparation, propagation, or compounding of manufactured medical cannabis, as described in subdivision (ae), or medical 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 medical cannabis or medical cannabis products or labels or relabels its container.
(ae) “Manufacturing site” means the premises that produces, prepares, propagates, or compounds manufactured medical cannabis or medical cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a licensee for these activities.
(af) “Medical cannabis,” “medical cannabis product,” or “cannabis product” means a product containing cannabis, including, but not limited to, concentrates and extractions, intended to be sold for use by medical cannabis patients in California 102Exhibit 3

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pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

For the purposes of this chapter, “medical cannabis” does not include “industrial hemp” as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code. (ag) “Nursery” means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of medical cannabis. (ah) “Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.
(ai) “Primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code. (aj) “State license” or “license ” means a state license issued pursuant to this chapter. (ak) “Testing laboratory” means the premises where tests are performed on medical cannabis or medical cannabis products and that holds a valid certificate of accreditation.
(al) “Topical cannabis” means a product intended for external use. A topical cannabis product is not considered a drug as defined by Section 109925 of the Health and Safety Code. (am) “Transport” means the transfer of medical cannabis or medical cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized pursuant to this chapter.
(an) “Transporter” means a person who holds a license by the bureau to transport medical cannabis or medical cannabis products in an amount above a threshold determined by the bureau between licensees that have been issued a license pursuant to this chapter.

19300.7.

License classifications pursuant to this chapter are as follows:
(a)  Type 1 = Cultivation; Specialty outdoor; Small.
(b)  Type 1A = Cultivation; Specialty indoor; Small.
(c)  Type 1B = Cultivation; Specialty mixed‐light; Small. (d)  Type 2 = Cultivation; Outdoor; Small.
(e)  Type 2A = Cultivation; Indoor; Small.
(f)  Type 2B = Cultivation; Mixed‐light; Small.
(g)  Type 3 = Cultivation; Outdoor; Medium.
(h)  Type 3A = Cultivation; Indoor; Medium.
(i)  Type 3B = Cultivation; Mixed‐light; Medium.
(j)  Type 4 = Cultivation; Nursery.
(k)  Type 6 = Manufacturer 1.
(l)  Type 7 = Manufacturer 2.
(m)  Type 8 = Testing laboratory.
(n)  Type 10 = Dispensary; General.
(o)  Type 10A = Producing Dispensary; No more than three retail sites. (p)  Type 11 = Distributor.
(q)  Type 12 = Transporter.

ARTICLE 2. ADMINISTRATION (19302 – 19310)
19302.

There is in the Department of Consumer Affairs the Bureau of Medical Cannabis Regulation, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter related to the bureau. 19302.1.
(a) The Governor shall appoint a chief of the bureau, subject to confirmation by the Senate, at a salary to be fixed and determined by the Director of Consumer Affairs with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor. (b) Every power granted to or duty imposed upon the Director of Consumer Affairs under this chapter may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe. In addition to every power granted or duty imposed with this chapter, the director shall have all other powers and duties generally applicable in relation to bureaus that are part of the Department of Consumer Affairs.
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(c)  The Director of Consumer Affairs may employ and appoint all employees necessary to properly administer the work of the bureau, in accordance with civil service laws and regulations. The Governor may also appoint a deputy chief and an assistant chief counsel to the bureau. These positions shall hold office at the pleasure of the Governor. (d)  The Department of Consumer Affairs shall have the sole authority to create, issue, renew, discipline, suspend, or revoke licenses for the transportation, storage unrelated to manufacturing activities, testing, distribution, and sale of medical cannabis within the state and to collect fees in connection with activities the bureau regulates. The bureau shall have the authority to create licenses in addition to those identified in this chapter that the bureau deems necessary to effectuate its duties under this chapter.
(e)  The Department of Food and Agriculture shall administer the provisions of this chapter related to and associated with the cultivation of medical cannabis and will serve as lead agency for the purpose of fulfilling the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). The Department of Food and Agriculture shall have the authority to create, issue, renew, discipline, suspend, or revoke licenses for the cultivation of medical cannabis and to collect fees in connection with activities it regulates. The Department of Food and Agriculture shall have the authority to create licenses in addition to those identified in this chapter that it deems necessary to effectuate its duties under this chapter.
(f)  The State Department of Public Health shall administer the provisions of this chapter related to and associated with the manufacturing of medical cannabis. The State Department of Public Health shall have the authority to create, issue, renew, discipline, suspend, or revoke licenses for the manufacturing of medical cannabis and medical cannabis products and to collect fees in connection with activities it regulates. The State Department of Public Health shall have the authority to create licenses in addition to those identified in this chapter that it deems necessary to effectuate its duties under this chapter.

19303.

Protection of the public shall be the highest priority for all licensing authorities in exercising its licensing, regulatory, and disciplinary functions under this chapter. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be paramount. 19304.
(a) The licensing authorities shall make and prescribe rules and regulations as may be necessary or proper to carry out the purposes and intent of this chapter and to enable each licensing authority to exercise the powers and duties conferred upon it by this chapter, not inconsistent with any statute of this state, including particularly this chapter and Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code. (b) Each licensing authority may adopt emergency regulations to implement this chapter. (1) Each licensing authority may readopt any emergency regulation authorized by this section that is the same as, or substantially equivalent to, an emergency regulation previously adopted by this section. Any such readoption shall be limited to one time for each regulation.
(2) Notwithstanding any other law, the initial adoption of emergency regulations and the readoption of emergency regulations authorized by this section shall be deemed an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. The initial emergency regulations and the readopted emergency regulations authorized by this section shall be each submitted to the Office of Administrative Law for filing with the Secretary of State and shall remain in effect for no more than 180 days, by which time final regulations may be adopted.

19305.

Notice of any action of a licensing authority required by this chapter to be given may be signed and given by the director of the licensing authority or an authorized employee of the licensing authority and may be made personally or in the manner prescribed by Section 1013 of the Code of Civil. Procedure, or in the manner prescribed by Section 124 of this code. 19306.
(a) The bureau may convene an advisory committee to advise the bureau and licensing authorities on the development of standards and regulations pursuant to this chapter, including best practices and guidelines to ensure qualified patients have adequate access to medical cannabis and medical cannabis products. The advisory committee members shall be determined by the chief.
(b) The advisory committee members may include, but not be limited to, representatives of the medical cannabis industry, representatives of medical cannabis cultivators, appropriate local and state agencies, appropriate local and state law enforcement, physicians, environmental and public health experts, and medical cannabis patient advocates. 104Exhibit 3

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19307.

A licensing authority may make or cause to be made such investigation as it deems necessary to carry out its duties under this chapter. A licensing authority may work with state and local law enforcement agencies on investigations and enforcement actions pertaining to licenses.

For any hearing held pursuant to this chapter, the director, or a licensing authority, may delegate the power to hear and decide to an administrative law judge. Any hearing before an administrative law judge shall be pursuant to the procedures, rules, and limitations prescribed in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.

19308.

19309.

In any hearing before a licensing authority pursuant to this chapter, the licensing authority may pay any person appearing as a witness at the hearing at the request of the licensing authority pursuant to a subpoena, his or her actual, necessary, and reasonable travel, food, and lodging expenses, not to exceed the amount authorized for state employees.

19310.

A licensing authority may on its own motion at any time before a penalty assessment is placed into effect and without any further proceedings, review the penalty, but such review shall be limited to its reduction.

ARTICLE 3. ENFORCEMENT (19311 – 19319)
19311.

Grounds for disciplinary action: include, but are not limited to, the following:
(a) Failure to comply with the provisions of this chapter or any rule or regulation adopted pursuant to this chapter. (b) Conduct that constitutes grounds for denial of licensure pursuant to Chapter 3 (commencing with Section 490) of Division

1.5. (c) Any other grounds contained in regulations adopted by a licensing authority pursuant to this chapter. (d) Failure to comply with any state law, except as provided for in this chapter or other California law. (e) Failure to maintain safe conditions for inspection by a licensing authority. (f) Failure to comply with any operating procedure submitted to the licensing authority pursuant to subdivision (b) of Section 19322.

19312.
(a)
(1)  Each licensing authority may suspend, revoke, place on probation with terms and conditions, or otherwise discipline licenses issued by that licensing authority and fine a licensee, after proper notice and hearing to the licensee, if the licensee is found to have committed any of the acts or omissions constituting grounds for disciplinary action. (2)  A licensing authority may revoke a license when a local agency has notified the licensing authority that a licensee or applicant within its jurisdiction is in violation of state rules and regulation relating to commercial cannabis activities, and the licensing authority, through an investigation, has determined that the violation is grounds for termination or revocation of the license.
(b)  The disciplinary proceedings under this chapter shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director and agency head, as that term is defined in Section 11405.40 of the Government Code, of each licensing authority shall have all the powers granted therein. (c)  Each licensing authority may take disciplinary action and assess fines against its respective licensees for any violation of this chapter when the violation was committed by the licensee’s agent or employee while acting on behalf of the licensee or engaged in commercial cannabis activity.
(d)  A licensing authority may recover the costs of investigation and enforcement of a disciplinary proceeding pursuant to Section 125.3 of this code.

19313.5.

Upon suspension or revocation of a license, the licensing authority shall inform the bureau. The bureau shall then inform all other licensing authorities and the Department of Food and Agriculture.

105Exhibit 3

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19314.

All accusations against licensees shall be filed by the licensing authority within five years after the performance of the act or omission alleged as the ground for disciplinary action; provided, however, that the foregoing provision shall not constitute a defense to an accusation alleging fraud or misrepresentation as a ground for disciplinary action. The cause for disciplinary action in such case shall not be deemed to have accrued until discovery, by the licensing authority, of the facts constituting the fraud or misrepresentation, and, in such case, the accusation shall be filed within five years after such discovery.

19315.
(a)  Nothing in this chapter shall be interpreted to supersede or limit existing local authority for law enforcement activity, enforcement of local zoning requirements or local ordinances, or enforcement of local license, permit, or other authorization requirements.
(b)  Nothing in this chapter shall be interpreted to require a licensing authority to undertake local law enforcement responsibilities, enforce local zoning requirements, or enforce local licensing, permitting, or other authorization requirements.
(c)  Nothing in this chapter shall be interpreted to supersede or limit state agencies from exercising their existing enforcement authority under the Fish and Game Code, the Water Code, the Food and Agricultural Code, or the Health and Safety Code.

19316.
(a) Pursuant to Section 7 of Article XI of the California Constitution, a city, county, or city and county may adopt ordinances that establish additional standards, requirements, and regulations for local licenses and permits for commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, testing, security, and worker protections established by the state shall be the minimum standards for all licensees statewide. (b) For facilities issued a state license that are located within the incorporated area of a city, the city shall have full power and authority to enforce this chapter and the regulations promulgated by the bureau or any licensing authority, if delegated by the state. Notwithstanding Sections 101375, 101400, and 101405 of the Health and Safety Code or any contract entered into pursuant thereto, or any other law, the city shall further assume complete responsibility for any regulatory function relating to those licensees within the city limits that would otherwise be performed by the county or any county officer or employee, including a county health officer, without liability, cost, or expense to the county. (c) Nothing in this chapter, or any regulations promulgated thereunder, shall be deemed to limit the authority or remedies of a city, county, or city and county under any provision of law, including, but not limited to, Section 7 of Article XI of the California Constitution.

19317.
(a) The actions of a licensee, its employees, and its agents that are (1) permitted pursuant to both a state license and a license or permit issued by the local jurisdiction following the requirements of the applicable local ordinances, and (2) conducted in accordance with the requirements of this chapter and regulations adopted pursuant to this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law. (b) The actions of a person who, in good faith, allows his or her property to be used by a licensee, its employees, and its agents, as permitted pursuant to both a state license and a local license or permit following the requirements of the applicable local ordinances, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.

19319.
(a) A qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who cultivates, possesses, stores, manufactures, or transports cannabis exclusively for his or her personal medical use but who does not provide, donate, sell, or distribute cannabis to any other person is not thereby engaged in commercial cannabis activity and is therefore exempt from the licensure requirements of this chapter. (b) A primary caregiver who cultivates, possesses, stores, manufactures, transports, donates, or provides cannabis exclusively for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 of the Health and Safety Code, but who does not receive remuneration for these activities except for compensation in full compliance with subdivision (c) of Section 11362.765 of the Health and Safety Code, is exempt from the licensure requirements of this chapter.

ARTICLE 4. LICENSING (19320 – 19325)
19320.
(a) All commercial cannabis activity shall be conducted between licensees, except as otherwise provided in this chapter. 106Exhibit 3

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(b) Licensing authorities administering this chapter may issue state licenses only to qualified applicants engaging in commercial cannabis activity pursuant to this chapter. Upon the date of implementation of regulations by the licensing authority, no person shall engage in commercial cannabis activity without possessing both a state license and a local permit, license, or other authorization. A licensee shall not commence activity under the authority of a state license until the applicant has obtained, in addition to the state license, a local license, permit, or other authorization from the local jurisdiction in which he or she proposes to operate, following the requirements of the applicable local ordinance. (c) Each licensee shall obtain a separate license for each location where it engages in commercial medical cannabis activity.

However, transporters only need to obtain licenses for each physical location where the licensee conducts business while not in transport or where any equipment that is not currently transporting medical cannabis or medical cannabis products permanently resides.
(d) Revocation of a local license, permit, or other authorization shall terminate the ability of a medical cannabis business to operate within that local jurisdiction until the local jurisdiction reinstates or reissues the local license, permit, or other authorization. Local authorities shall notify the bureau upon revocation of a local license, permit, or other authorization.

The bureau shall inform relevant licensing authorities. (e) Revocation of a state license shall terminate the ability of a medical cannabis licensee to operate within California until the licensing authority reinstates or reissues the state license. (f) In addition to the provisions of this chapter, local jurisdictions retain the power to assess fees and taxes, as applicable, on facilities that are licensed pursuant to this chapter and the business activities of those licensees. (g) Nothing in this chapter shall be construed to supersede or limit state agencies, including the Department of Food and Agriculture, the State Water Resources Control Board, and the Department of Fish and Wildlife, from establishing fees to support their medical cannabis regulatory programs.

19321.
(a) A license issued pursuant to this chapter shall be valid for 12 months from the date of issuance. The license shall be renewed annually. Each licensing authority shall establish procedures for the renewal of a license. (b) Notwithstanding subdivision (b) of Section 19320, the premises or person that is operating in compliance with local zoning ordinances and other state and local requirements on or before January 1, 2018, may continue its operations until its application for licensure is approved or denied pursuant to this. chapter only if (1) a completed application and all required documentation and approvals for licensure are submitted to the licensing authority no later than the deadline established by the licensing authority and (2) the applicant continues to operate in compliance with all local and state requirements, except possession of a state license pursuant to this chapter. In issuing licenses, the licensing authority shall prioritize any premises or person that can demonstrate to the authority’s satisfaction that the premises or person was in operation and in good standing with the local jurisdiction by January 1, 2016. (c) Issuance of a state license or a determination of compliance with local law by the licensing authority shall in no way limit the ability of the City of Los Angeles to prosecute any person or entity for a violation of, or otherwise enforce, Proposition D, approved by the voters of the City of Los Angeles on the May 21, 2013, ballot for the city, or the city’s zoning laws. Nor may issuance of a license or determination of compliance with local law by the licensing authority be deemed to establish, or be relied upon, in determining satisfaction with the immunity requirements of Proposition D or local zoning law, in court or in any other context or forum.

19322.
(a)  A person shall not submit an application for a state license issued by a licensing authority pursuant to this chapter unless that person has received a license, permit, or authorization from the local jurisdiction. An applicant for any type of state license issued pursuant to this chapter shall do all of the following:
(1)  Electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance, pending trial or appeal.
(A)  The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(B)  The licensing authority shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants. (C)  The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.
(2)  Provide documentation issued by the local jurisdiction in which the proposed business is operating certifying that the applicant is or will be in compliance with all local ordinances and regulations. 107Exhibit 3

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(3)  Provide evidence of the legal right to occupy and use the proposed location. For an applicant seeking a cultivator, distributor, manufacturing, testing, transporter, or dispensary license, provide a statement from the owner of real property or their agent where the cultivation, distribution, manufacturing, testing, transport, or dispensing of commercial medical cannabis activities will occur, as proof to demonstrate the landowner has acknowledged and consented to permit cultivation, distribution, manufacturing, testing, transport, or dispensary activities to be conducted on the property by the tenant applicant.
(4)  If the application is for a cultivator or a dispensary, provide evidence that the proposed location is located beyond at least a 600‐foot radius from a school, as required by Section 11362.768 of the Health and Safety Code. (5)  Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.
(6)
(A)  For an applicant with 20 or more employees, provide a statement that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement. (B)  For the purposes of this paragraph, “employee” does not include a supervisor. (C)  For purposes of this paragraph, “supervisor” means an individual having authority, in the interest of the licensee, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.
(7)  Provide the applicant’s valid seller’s permit number issued pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a seller’s permit. (8)  Provide any other information required by the licensing authority. (9)  For an applicant seeking a cultivation license, provide a statement declaring the applicant is an “agricultural employer,” as defined in the Alatorre‐Zenovich‐Dunlap‐Berman Agricultural Labor Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of Division 2 of the Labor Code), to the extent not prohibited by law. (10) Pay all applicable fees required for licensure by the licensing authority. (11) Provide proof of a bond to cover the costs of destruction of medical cannabis or medical cannabis products if necessitated by a violation of licensing requirements.
(b)  For applicants seeking licensure to cultivate, distribute, manufacture, test, or dispense medical, cannabis or medical cannabis products, the application shall also include a detailed description of the applicant’s operating procedures for all of the following, as required by the licensing authority:
(1)  Cultivation.
(2)  Extraction and infusion methods.
(3)  The transportation process.
(4)  Inventory procedures.
(5)  Quality control procedures.
(6)  Security protocols.

19323.
(a)   A licensing authority shall deny an application if the applicant or the premises for which a state license is applied does not qualify for licensure under this chapter or the rules and regulations for the state license. (b)  A licensing authority may deny an application for licensure or renewal of a state license, or issue a conditional license, if any of the following conditions apply:
(1)  Failure to comply with the provisions of this chapter or any rule or regulation adopted pursuant to this chapter, including but not limited to, any requirement imposed to protect natural resources, instream flow, and water quality pursuant to subdivision (a) of Section 19332.
(2)  Conduct that constitutes grounds for denial of licensure pursuant to Chapter 2 (commencing with Section 480) of Division 1.5.
(3)  The applicant has failed to provide information required by the licensing authority. (4)  The applicant or licensee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the licensing authority determines that the applicant or licensee is otherwise suitable to be issued a license and granting the license would not compromise public safety, the licensing authority shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or licensee to be issued a license based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the licensing authority shall include, but not be limited to, the following:
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(A)  A felony conviction for the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance.
(B)  A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. (C)  A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code. (D)  A felony conviction involving fraud, deceit, or embezzlement. (5)  The applicant, or any of its officers, directors, or owners, is a licensed physician making patient recommendations for medical cannabis pursuant to Section 11362.7 of the Health and Safety Code. (6)  The applicant or any of its officers, directors, or owners has been subject to fines or penalties for cultivation or production of a controlled substance on public or private lands pursuant to Section 12025 or 12025.1 of the Fish and Game Code.
(7)  The applicant, or any of its officers, directors, or owners, has been sanctioned by a licensing authority or a city, county, or city and county for unlicensed commercial cannabis activities or has had a license revoked under this chapter in the three years immediately preceding the date the application is filed with the licensing authority. (8)  Failure to obtain and maintain a valid seller’s permit required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(9)  The applicant or any of its officers, directors, owners, employees, or authorized agents have failed to comply with any operating procedure required pursuant to subdivision (b) of Section 19322. (10) Conduct that constitutes grounds for disciplinary action pursuant to this chapter.

19324.

Upon the denial of any application for a license, the licensing authority shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written petition for a license with the licensing authority. Upon receipt of a timely filed petition, the licensing authority shall set the petition for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director of each licensing authority shall have all the powers granted therein.

19325.

An applicant shall not be denied a state license if the denial is based solely on any of the following:
(a) A conviction or act that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made for which the applicant or licensee has obtained a certificate of rehabilitation pursuant to Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code. (b) A conviction that was subsequently dismissed pursuant to Section 1203.4, 1203.4a, or 1203.41 of the Penal Code.

ARTICLE 5. MEDICAL MARIJUANA REGULATION (19326 – 19330) 19326.
(a)  A person other than a transporter shall not transport medical cannabis or medical cannabis products from one licensee to another licensee, unless otherwise specified in this chapter. (b)
(1)  All cultivators, manufacturers, and licensees holding a producing dispensary license in addition to a cultivation or manufacturing license shall send all medical cannabis and medical cannabis products cultivated or manufactured to a distributor, as defined in Section 19300.5, for presale quality assurance and inspection by a distributor and for a batch testing by a testing laboratory prior to distribution to a dispensary. (2)  Notwithstanding paragraph (1), a cultivator shall not be required to send medical cannabis to a distributor if the medical cannabis is to be used, sold, or otherwise distributed by methods approved pursuant to this chapter by a manufacturer for further manufacturing.
(c)
(1)  Upon receipt of medical cannabis or medical cannabis products, from a cultivator, manufacturer, or a licensee holding a producing dispensary license in addition to a cultivation or a manufacturing license, the distributor shall first inspect the product to ensure the identity and quantity of the product and ensure a random sample of the medical cannabis or medical cannabis product is tested by a testing laboratory. (2)  Upon issuance of a certificate of analysis by the testing laboratory that the product is fit for dispensing medical cannabis and medical cannabis products shall undergo a quality assurance review by the distributor prior to distribution to ensure the quantity and content of the medical cannabis or medical cannabis product, and for tracking and taxation purposes by the state.
(3)  This section does not limit the ability of licensed cultivators, manufacturers, and dispensaries to directly enter into contracts with one another indicating the price and quantity of medical cannabis or medical cannabis products to be distributed. However, a distributor responsible for executing the contract is authorized to collect a fee for the services 109Exhibit 3

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rendered, including, but not limited to, costs incurred by a testing laboratory, as well as applicable state or local taxes and fees.
(d) Medical cannabis and medical cannabis products shall be tested by a licensed testing laboratory, prior to dispensing, pursuant to Section 19344.
(e) This chapter shall not prohibit a licensee from performing testing on the licensee’s premises for the purposes of quality assurance of the product in conjunction with reasonable business operations. On‐site testing by the licensee shall not be certified by the Bureau of Medical Cannabis Regulation.

19327.
(a) A licensee shall keep accurate records of commercial cannabis activity. (b) All records related to commercial cannabis activity shall be maintained for a minimum of seven years. (c) Licensing authorities may examine the records of licensees and inspect the premises of a licensee as the licensing authority or a state or local agency deems necessary to perform its duties under this chapter. All inspections and examination of records shall be conducted during standard business hours of the licensed facility or at any other reasonable time.

Licensees shall provide and deliver records to the licensing authority upon request. (d) Licensees shall keep records identified by the licensing authorities on the premises of the location licensed. (e) A licensee or its agent, or employee that refuses, impedes, obstructs, or interferes with an inspection of the premises or records of the licensee pursuant to this section has engaged in a violation of this chapter. (f) If a licensee, its agent, or an employee of a licensee fails to maintain or provide the records required pursuant to this section, the licensee may be subject to a citation and fine of thirty thousand dollars ($30,000) per individual violation.

19328.
(a)   Except as provided in paragraphs (9) and (10), a licensee may only hold a state license in up to two separate license categories, as follows:
(1)  Type 1, 1A, 1B, 2, 2A, or 2B licensees may also hold either a Type 6 or 7 state license. (2)  Type 6 or 7 licensees, or a combination thereof, may also hold either a Type 1, 1A, 1B, 2, 2A, or 2B state license. (3)  Type 6 or 7 licensees, or a combination thereof, may also hold a Type 10A state license. (4)  Type 10A licensees may also hold either a Type 6 or 7 state license, or a combination thereof. (5)  Type 1, 1A, 1B, 2, 2A, or 2B licensees, or a combination thereof, may also hold a Type 10A state license. (6)  Type 10A licensees may hold a Type 1, 1A, 1B, 2, 2A, or 2B state license, or a combination thereof. (7)  Type 11 licensees shall also hold a Type 12 state license, but shall not hold any other type of state license. (8)  Type 12 licensees may hold a Type 11 state license. (9)  A Type 10A licensee may hold a Type 6 or 7 state license and may also hold a 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination thereof if, under the 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination of licenses thereof, no more than four acres of total canopy size of cultivation by the licensee is occurring throughout the state during the period that the respective licenses are valid. All cultivation pursuant to this section shall comply with local ordinances. This paragraph shall become inoperative on January 1, 2026.
(10) All cultivators and manufacturers may hold a Type 12 transporter license. All cultivators and manufacturers who are issued Type 12 transporter licenses shall comply with the following:
(A)  Cultivators shall only transport medical cannabis from a cultivation site to a manufacturer or a distributor. (B)  Manufacturers shall only transport medical cannabis and medical cannabis products as follows:
(i)  Between a cultivation site and a manufacturing site. (ii)  Between a manufacturing site and a manufacturing site. (iii)  Between a manufacturing site and a distributor.
(b)  Except as provided in subdivision (a), a person or entity that holds a state license is prohibited from licensure for any other activity authorized under this chapter, and is prohibited from holding an ownership interest in real property, personal property, or other assets associated with or used in any other license category. (c)
(1)  In a jurisdiction that adopted a local ordinance, prior to July 1, 2015, requiring qualified businesses to cultivate, manufacture, and dispense medical cannabis or medical cannabis products, with all commercial cannabis activity being conducted by a single qualified business, upon licensure that business shall not be subject to subdivision (a) if it meets all of the following conditions:
(A)  The business was cultivating, manufacturing, and dispensing medical cannabis or medical cannabis products on, January 1, 2016, and has continuously done so since that date. (B)  The business has been in full compliance with all applicable local ordinances at all times prior to licensure. (C)  The business is registered with the State Board of Equalization for tax purposes. 110Exhibit 3

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(2) A business licensed pursuant to paragraph (1) is not required to conduct all cultivation or manufacturing within the bounds of a local jurisdiction, but all cultivation and manufacturing shall have commenced prior to January 1, 2016, and have been in full compliance with applicable local ordinances. (d) This section shall remain in effect only until January 1, 2026, and as of that date is repealed.

19329.

A licensee shall not also be licensed as a retailer of alcoholic beverages pursuant to Division 9 (commencing with Section 23000).

19330.

This chapter and Article 2 (commencing with Section 11357) and Article 2.5 (commencing with Section 11362.7) of Chapter 6 of Division 10 of the Health and Safety Code 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 state or federal law.

ARTICLE 6. LICENSED CULTIVATION SITES (19332 – 19333) 19332.
(a)  The Department of Food and Agriculture shall promulgate regulations governing the licensing of indoor and outdoor commercial cultivation sites.
(b)  The Department of Pesticide Regulation shall develop guidelines for the use of pesticides in the cultivation of cannabis and residue in harvested cannabis.
(c)  The Department of Food and Agriculture shall serve as the lead agency for purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) related to the licensing of cannabis cultivation.
(d)  Pursuant to Section 13149 of the Water Code, the State Water Resources Control Board, in consultation with the Department of Fish and Wildlife and the Department of Food and Agriculture, shall ensure that individual and cumulative effects of water diversion and discharge associated with cultivation of cannabis do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. (e)  The Department of Food and Agriculture shall have the authority necessary for the implementation of the regulations it adopts pursuant to this chapter. The regulations shall do all of the following:
(1)  Provide that weighing or measuring devices used in connection with the sale or distribution of medical cannabis are required to meet standards equivalent to Division 5 (commencing with Section 12001). (2)  Require that cannabis cultivation by licensees is conducted in accordance with state and local laws. Nothing in this chapter, and no regulation adopted by the department, shall be construed to supersede or limit the authority of the State Water Resources Control Board, regional water quality control boards, or the Department of Fish and Wildlife to implement and enforce their statutory obligations or to adopt regulations to protect water quality, water supply, and natural resources.
(3)  Establish procedures for the issuance and revocation of unique identifiers for activities associated with a cannabis cultivation license, pursuant to Article 8 (commencing with Section 19337). All cannabis shall be labeled with the unique identifier issued by the Department of Food and Agriculture. (4)  Prescribe standards, in consultation with the bureau, for the reporting of information as necessary related to unique identifiers, pursuant to Article 8 (commencing with Section 19337). (f)  The Department of Pesticide Regulation shall require that the application of pesticides or other pest control in connection with the indoor or outdoor cultivation of medical cannabis complies with Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations. (g)  State cultivator license types issued by the Department of Food and Agriculture may include:
(1)  Type 1, or “specialty outdoor,” for outdoor cultivation using no artificial lighting of less than or equal to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots. (2)  Type 1A, or “specialty indoor,” for indoor cultivation using exclusively artificial lighting of between 501 and  5,000 square feet of total canopy size on one premises.
(3)  Type 1B, or “specialty mixed‐light,” for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of between 2,501 and 5,000 square feet of total canopy size on one premises.
(4) Type 1C, or “specialty cottage,” for cultivation using a combination of natural and supplemental artificial light at a maximum threshold to be determined by the licensing authority, of 2,500 square feet or less of total canopy size for 111Exhibit 3

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mixed‐light cultivation, up to 25 mature plants for outdoor cultivation, or 500 square feet or less of total canopy size for indoor cultivation, on one premises.
(5)  Type 2, or “small outdoor,” for outdoor cultivation using no artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(6)  Type 2A, or “small indoor,” for indoor cultivation using exclusively artificial lighting between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(7)  Type 2B, or “small mixed‐light,” for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 5,001 and 10,000 square feet, inclusive, of total canopy size on one premises.
(8)  Type 3, or “outdoor,” for outdoor cultivation using no artificial lighting from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(9)  Type 3A, or “indoor,” for indoor cultivation using exclusively artificial lighting between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(10)  Type 3B, or “mixed‐light,” for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. The Department of Food and Agriculture shall limit the number of licenses allowed of this type.
(11) Type 4, or “nursery,” for cultivation of medical cannabis solely as a nursery. Type 4 licensees may transport live. plants, if the licensee also holds a Type 12 transporter license issued pursuant to this chapter.

19332.2.
(a)  An application for a license for indoor or outdoor cultivation shall identify the source of water supply. (1)
(A)  If water will be supplied by a retail water supplier, as defined in Section 13575 of the Water Code, the application shall identify the retail water supplier.
(B)  Paragraphs (2) and (3) shall not apply to any water subject to subparagraph (A) unless the retail water supplier has 10 or fewer customers, the applicant receives 10 percent or more of the water supplied by the retail water supplier, 25 percent or more of the water delivered by the retail water supplier is used for cannabis cultivation, or the applicant and the retail water supplier are affiliates, as defined in Section 2814.20 of Title 23 of the California Code of Regulations.
(2)  If the water supply includes a diversion within the meaning of Section 5100 of the Water Code, the application shall identify the point of diversion and maximum amount to be diverted. (3)  If water will be supplied from a groundwater extraction not subject to paragraph (2), the application shall identify the location of the extraction and the maximum amount to be diverted for cannabis cultivation in any year. (b)  An application for a license issued by the Department of Food and Agriculture before January 1, 2020, shall include one of the following:
(1)  A copy of a registration, permit, or license issued under Part 2 (commencing with Section 1200) of Division 2 of the Water Code that covers the diversion.
(2)  A copy of a statement of water diversion and use, filed with the State Water Resources Control Board before July 1, 2017, that covers the diversion and specifies the amount of water used for cannabis cultivation. (3)  A copy of a pending application for a permit to appropriate water, filed with the State Water Resources Control before July 1, 2017.
(4)  Documentation, submitted to the State Water Resources Control Board before July 1, 2017, establishing that the diversion is subject to subdivision (a), (c), (d) or (e) of Section 5101 of the Water Code. (5)  Documentation, submitted to the State Water Resources Control Board before July 1, 2017, establishing that the diversion is authorized under a riparian right and that no diversion occurred after January 1, 2010, and before January 1, 2017.
(c)  An application for a cultivation license issued after December 31, 2019, shall include one of the following:
(1)  A copy of a registration, permit, or license issued under Part 2 (commencing with Section 1200) of Division 2 of the Water Code that covers the diversion.
(2)  A copy of a statement of water diversion and use, filed with the State Water Resources Control Board, that covers the diversion.
(3)  Documentation, submitted to the State Water Resources Control Board, establishing that the diversion is subject to subdivision (a), (c), (d) or (e) of Section 5101 of the Water Code. 112Exhibit 3

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(4)  Documentation, submitted to the State Water Resources Control Board, establishing that the diversion is authorized under a riparian right and that no diversion occurred in any calendar year between January 1, 2010, and the calendar year in which the application is submitted.
(d)  The Department of Food and Agriculture shall include in any license for cultivation requirements for compliance with applicable principles, guidelines, and requirements established under Section 13149 of the Water Code. (e)  The Department of Food and Agriculture shall include in any license for cultivation any relevant mitigation requirements the Department of Food and Agriculture identifies as part of its approval of the final environmental documentation for the cannabis cultivation licensing program as requirements that should be included in a license for cultivation. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the identification of these mitigation measures.
(f)  Every license for cultivation shall include a condition that the license shall not be effective until the licensee has complied with Section 1602 of the Fish and Game Code or receives written verification from the Department of Fish and Wildlife that a streambed alteration agreement is not required.
(g)  The Department of Food and Agriculture shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this section.

19332.5.
(a) Not later than January 1, 2020, the Department of Food and Agriculture shall make available a certified organic designation and organic certification program for medical cannabis cultivation, if permitted under federal law and the National Organic Program (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)), and Article 7 (commencing with Section 110810) of Chapter 5 of Part 5 of Division 104 of the Health and Safety Code. (b) The Department of Food and Agriculture may establish appellations of origin for cannabis grown in California. (c) It is unlawful for medical cannabis to be marketed, labeled, or sold as grown in a California county when the medical cannabis was not grown in that county.
(d) It is unlawful to use the name of a California county in the labeling, marketing, or packaging of medical cannabis products unless the product was grown in that county.

19333.

An employee engaged in commercial cannabis cultivation activity shall be subject to Wage Order 4‐2001 of the Industrial Welfare Commission.

ARTICLE 7. LICENSED DISTRIBUTORS, DISPENSARIES, AND TRANSPORTERS (19334 – 19334) 19334.
(a)  State licenses to be issued by the Department of Consumer Affairs are as follows:
(1)  “Dispensary,” Type 10 license as defined in this chapter. This license shall allow for delivery pursuant to Section 19340.
(2)  “Distributor,” Type 11 license for the distribution of medical cannabis and medical cannabis products from manufacturer to dispensary. A  distributor licensee shall hold a Type 12 or transporter license. Each location where product is stored for the purposes of. distribution must be individually licensed. A distributor licensee shall not hold a license in a cultivation, manufacturing, dispensing, or testing license category and shall not own, or have an ownership interest in, premises licensed in those categories other than a security interest, lien, or encumbrance on property that is used by a licensee. A distributor shall be bonded and insured at a minimum level established by the licensing authority.
(3)  “Producing dispensary,” Type 10A for dispensers who have no more than three licensed dispensary facilities and wish to hold either a cultivation or manufacturing license or both. This license shall allow for delivery where expressly authorized by local ordinance. Each dispensary must be individually licensed. (4)  “Transport,” Type 12 license for transporters of medical cannabis or medical cannabis products between licensees. A Type 12 licensee shall be bonded and insured at a minimum level established by the licensing authority. (b)  The bureau shall establish minimum security requirements for the commercial transportation, storage, and delivery of medical cannabis and medical cannabis products.
(c)  The State Department of Public Health shall establish minimum security requirements for the storage of medical cannabis products at the manufacturing site.
(d)  A licensed dispensary 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 at the dispensary. These security measures shall include, but not be limited to, all of the following:
(1)  Preventing individuals from remaining on the premises of the dispensary if they are not engaging in activity expressly related to the operations of the dispensary.
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(2)    Establishing limited access areas accessible only to authorized dispensary personnel. (3)  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.
(e)  A dispensary shall notify the licensing authority and the appropriate law enforcement authorities within 24 hours after discovering any of the following:
(1)  Significant discrepancies identified during inventory. The level of significance shall be determined by the bureau. (2)  Diversion, theft, loss, or any criminal activity pertaining to the operation of the dispensary. (3)  Diversion, theft, loss, or any criminal activity by any agent or employee of the dispensary pertaining to the operation of the dispensary.
(4)  The loss or unauthorized alteration of records related to medical cannabis or medical cannabis products, registered qualifying patients, primary caregivers, or dispensary employees or agents. (5)  Any other breach of security.

ARTICLE 7.5 UNIQUE IDENTIFIER AND TRACK AND TRACE PROGRAM (19335 – 19336) 19335.
(a)  The Department of Food and Agriculture, in consultation with the bureau, shall establish a track and trace program for reporting the movement of medical cannabis items throughout the distribution chain that utilizes a unique identifier pursuant to Section 11362.777 of the Health and Safety Code and secure packaging and is capable of providing information that captures, at a minimum, all of the following:
(1)  The licensee receiving the product.
(2)  The transaction date.
(3)  The cultivator from which the product originates, including the associated unique identifier, pursuant to Section 11362.777 of the Health and Safety Code.
(b)
(1)  The Department of Food and Agriculture, in consultation with the State Board of Equalization, shall create an electronic database containing the electronic shipping manifests to facilitate the administration of the track and trace program, which shall include, but not be limited to, the following information:
(A)  The quantity, or weight, and variety of products shipped. (B)  The estimated times of departure and arrival.
(C)  The quantity, or weight, and variety of products received. (D)  The actual time of departure and arrival.
(E)  A categorization of the product.
(F)  The license number and the unique identifier pursuant to Section 11362.777 of the Health and Safety Code issued by the licensing authority for all licensees involved in the shipping process, including, but not limited to, cultivators, manufacturers, transporters, distributors, and dispensaries. (2)
(A)  The database shall be designed to flag irregularities for all licensing authorities in this chapter to investigate. All licensing authorities pursuant to this chapter may access the database and share information related to licensees under this chapter, including social security and individual taxpayer identifications notwithstanding Section 30. (B)  The Department of Food and Agriculture shall immediately inform the bureau upon the finding of an irregularity or suspicious finding related to a licensee, applicant, or commercial cannabis activity for investigatory purposes. (3)  Licensing authorities and state and local agencies may, at any time, inspect shipments and request documentation for current inventory.
(4)  The bureau shall have 24‐hour access to the electronic database administered by the Department of Food and Agriculture. The State Board of Equalization shall have read access to the electronic database for the purpose of taxation and regulation of medical cannabis and medical cannabis products. (5)  The Department of Food and Agriculture shall be authorized to enter into memoranda of understandings with licensing authorities for data sharing purposes, as deemed necessary by the Department of Food and Agriculture. (6)  Information received and contained in records kept by the Department of Food and Agriculture or licensing authorities for the purposes of administering this chapter are confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this chapter or a local ordinance. (7)  Upon the request of a state or local law enforcement agency, licensing authorities shall allow access to or provide information contained within the database to assist law enforcement in their duties and responsibilities pursuant to this chapter.
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19336.
(a) Chapter 4 (commencing with Section 55121) of Part 30 of Division 2 of the Revenue and Taxation Code shall apply with respect to the bureau’s collection of the fees, civil fines, and penalties imposed pursuant to this chapter. (b) Chapter 8 (commencing with Section 55381) of Part 30 of Division 2 of the Revenue and Taxation Code shall apply with respect to the disclosure of information under this chapter.

ARTICLE 8. LICENSED TRANSPORTERS (19337 – 19338)
19337.
(a)  A licensee authorized to transport medical cannabis and medical cannabis products between licenses shall do so only as set forth in this chapter.
(b)  Prior to transporting medical cannabis or medical cannabis products, a licensed transporter of medical cannabis or medical cannabis products shall do both of the following:
(1)  Complete an electronic shipping manifest as prescribed by the licensing authority. The shipping manifest must include the unique identifier, pursuant to Section 11362.777 of the Health and Safety Code, issued by the Department of Food and Agriculture for the original cannabis product. (2)  Securely transmit the manifest to the bureau and the licensee that will receive the medical cannabis product. The bureau shall inform the Department of Food and Agriculture of information pertaining to commercial cannabis activity for the purpose of the track and trace program identified in Section 19335. (c)  During transportation, the licensed transporter shall maintain a physical copy of the shipping manifest and make it available upon request to agents of the Department of Consumer Affairs and law enforcement officers. (d)  The licensee receiving the shipment shall maintain each electronic shipping manifest and shall make it available upon request to the Department of Consumer Affairs and any law enforcement officers. (e)  Upon receipt of the transported shipment, the licensee receiving the shipment shall submit to the licensing agency a record verifying receipt of the shipment and the details of the shipment. (f)  Transporting, or arranging for or facilitating the transport of, medical cannabis or medical cannabis products in violation of this chapter is grounds for disciplinary action against the license.

19338.
(a) This chapter shall not be construed to authorize or permit a licensee to transport or cause to be transported cannabis or cannabis products outside the state, unless authorized by federal law. (b) A local jurisdiction shall not prevent transportation of medical cannabis or medical cannabis products on public roads by a licensee transporting medical cannabis or medical cannabis products in compliance with this chapter.

ARTICLE 9. DELIVERY (19340 – 19340)
19340.
(a)  Deliveries, as defined in this chapter, can only be made by a dispensary and in a city, county, or city and county that does not explicitly prohibit it by local ordinance.
(b)  Upon approval of the licensing authority, a licensed dispensary that delivers medical cannabis or medical cannabis products shall comply with both of the following:
(1)  The city, county, or city and county in which the licensed dispensary is located, and in which each delivery is made, do not explicitly by ordinance prohibit delivery, as defined in Section 19300.5. (2)  All employees of a dispensary delivering medical cannabis or medical cannabis products shall carry a copy of the dispensary’s current license authorizing those services with them during deliveries and the employee’s government‐ issued identification, and shall present that license and identification upon request to state and local law enforcement, employees of regulatory authorities, and other state and local agencies enforcing this chapter. (c)  A county shall have the authority to impose a tax, pursuant to Article 11 (commencing with Section 19348), on each delivery transaction completed by a licensee.
(d)  During delivery, the licensee shall maintain a physical copy of the delivery request and shall make it available upon request of the licensing authority and law enforcement officers. The delivery request documentation shall comply with state and federal law regarding the protection of confidential medical information. (e)  The qualified patient or primary caregiver requesting the delivery shall maintain a copy of the delivery request and shall make it available, upon request, to the licensing authority and law enforcement officers. (f)  A local jurisdiction shall not prevent carriage of medical cannabis or medical cannabis products on public roads by a licensee acting in compliance with this chapter.
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ARTICLE 10. LICENSED MANUFACTURERS AND LICENSED LABORATORIES (19341 – 19347.8) 19341.

The State Department of Public Health shall promulgate regulations governing the licensing of manufacturers. The State Department of Public Health shall develop standards for the manufacturing and labeling of all manufactured medical cannabis products. Licenses to be issued are as follows:
(a) “Manufacturing level 1,” for manufacturing sites that produce medical cannabis products using nonvolatile solvents. (b) “Manufacturing level 2,” for manufacturing sites that produce medical cannabis products using volatile solvents. The State Department of Public Health shall limit the number of licenses of this type.

19342.
(a)  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 established by the International Organization for Standardization, specifically ISO/IEC 17025, to test medical cannabis and medical cannabis products. The testing laboratory shall be accredited by a body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement. (b)  An agent of a testing laboratory shall obtain samples according to a statistically valid sampling method for each lot. (c)  A testing laboratory shall analyze samples according to both of the following:
(1)  In the final form that the medical cannabis or medical cannabis products will be consumed or used, including moisture content and other attributes.
(2)  A scientifically valid methodology, as determined by the bureau. (d)  If a test result falls outside the specifications authorized by law or regulation, the testing laboratory shall follow a standard operating procedure to confirm or refute the original result. (e)  A testing laboratory shall destroy the remains of the sample of medical cannabis or medical cannabis product upon completion of the analysis.
(f)  The State Department of Public Health and the Department of Pesticide Regulation shall provide assistance to the bureau in developing regulations, as requested by the bureau.

19343.

A testing laboratory shall not be licensed by the bureau unless the laboratory meets all of the following:
(a)  A testing laboratory shall not hold a license in another license category under this chapter and shall not own or have an ownership interest in any other entity or premises licensed under a different category pursuant to this chapter. (b)  Follows the methodologies, ranges, and parameters that are contained in the scope of the accreditation for testing medical cannabis or medical cannabis products. The testing laboratory shall also comply with any other requirements specified by the bureau.
(c)  Notifies the bureau within one business day after the receipt of notice of any kind that its accreditation has been denied, suspended, or revoked.
(d)  Has established standard operating procedures that provide for adequate chain of custody controls for samples transferred to the testing laboratory for testing.

19344.
(a)  A testing laboratory shall issue a certificate of analysis for each lot, with supporting data, to report both of the following:
(1)  Whether the chemical profile of the lot conforms to the specifications of the lot for compounds, including, but not limited to, all of the following, unless limited through regulation by the bureau:
(A)  Tetrahydrocannabinol (THC).
(B)  Tetrahydrocannabinolic Acid (THCA).
(C)  Cannabidiol (CBD).
(D)  Cannabidiolic Acid (CBDA).
(E)   Terpenes required by the bureau in a regulation.
(F)  Cannabigerol (CBG).
(G)  Cannabinol (CBN).
(H)  Any other compounds or contaminants required by the bureau. (2)  That the presence of contaminants does not exceed the levels set by the bureau. In setting the levels, the bureau shall consider the American Herbal Pharmacopoeia monograph, guidelines set by the Department of Pesticide Regulation pursuant to subdivision (b) of Section 19332, and any other relevant sources. (A)  Residual solvent or processing chemicals.
(B)  Foreign material, including, but not limited to, hair, insects, or similar or related adulterant. (C)  Microbiological impurities as identified by the bureau in regulation. 116Exhibit 3

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(b) Residual levels of volatile organic compounds shall be below the lesser of either the specifications set by the United States Pharmacopeia (U.S.P. Chapter 467) or those set by the bureau.

19345.
(a)  Except as provided in this chapter, a testing laboratory shall not acquire or receive medical cannabis or medical cannabis products except from a licensee in accordance with this chapter, and shall not distribute, sell, deliver, transfer, transport, or dispense medical cannabis or medical cannabis products, from the licensed premises 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.
(b)  A 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 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 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.
(c)  The bureau shall develop procedures related to all of the following:
(1)  Ensuring that testing of medical cannabis and medical cannabis products occurs prior to delivery to dispensaries or any other business.
(2)  Specifying how often licensees shall test medical cannabis and medical cannabis products. (3)  Requiring the destruction of harvested batches whose testing samples indicate noncompliance with health and safety standards required by state law, unless remedial measures can bring the medical cannabis or medical cannabis products into compliance with quality assurance standards as specified by state law. (d)  Cultivators and manufacturers shall pay all costs related to and associated with the testing of medical cannabis and medical cannabis products required by this chapter.

19347.
(a)  Prior to delivery by or sale at a dispensary, medical cannabis and medical cannabis products shall be labeled and in tamper proof packaging and shall include a unique identifier, as prescribed by the Department of Food and Agriculture, for the purpose of identifying and tracking medical cannabis or medical cannabis products. Packages of medical cannabis and medical cannabis products shall meet the following requirements:
(1)  Medical cannabis packages and labels shall not be made to be attractive to children. (2)  All medical cannabis and medical cannabis product labels shall include the following information, prominently displayed and in a clear and legible font:
(A)  Cultivation and manufacture date and source.
(B)  The statement “SCHEDULE I CONTROLLED SUBSTANCE.”
(C)  The statement “KEEP OUT OF REACH OF CHILDREN AND ANIMALS” in bold print. (D)  The statement “FOR MEDICAL USE ONLY.”
(E)  The statement “THE INTOXICATING EFFECTS OF THIS PRODUCT MAY BE DELAYED BY UP TO TWO HOURS.” (F)  The statement “THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE OR OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.”
(G)  For packages containing only dried flower, the net weight of medical cannabis in the package. (H)  A warning if nuts or other known allergens are used in the manufacturing of the medical cannabis products. (I)  List of ingredients and pharmacologically active ingredients, including, but not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content, the THC, CBD, and other cannabinoid amount in milligrams per serving, servings per package, and the THC, CBD, and other cannabinoid amount in milligrams for the package total.
(J)  Clear indication, in bold type, that the product contains medical cannabis. (K)  Any other requirement set by the. bureau or the State Department of Public Health. (L)  Information associated with the unique identifier issued by the Department of Food and Agriculture pursuant to Section 11362.777 of the Health and Safety Code.
(M)  All manufactured and edible medical cannabis products shall be sold only in special packaging constructed to be child‐resistant unless otherwise exempted by regulation. (b)  Only generic food names may be used to describe edible medical cannabis products.

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19347.1.
(a)  The State Department of Public Health may issue a citation, which may contain an order of abatement and an order to pay an administrative fine assessed by the department where the licensee is in violation of this chapter or any regulation adopted pursuant to it.
(1)  Citations shall be in writing and shall describe with particularity the nature of the violation, including specific reference to the provision of law determined to have been violated. (2)  Whenever appropriate, the citation shall contain an order of abatement fixing a reasonable time for abatement of the violation.
(3)  In no event shall the administrative fine assessed by the State Department of Public Health exceed five thousand dollars ($5,000) for each violation, unless a different fine amount is expressly provided by this chapter. In assessing a fine, the licensing authority shall give due consideration to the appropriateness of the amount of the fine with respect to factors such as the gravity of the violation, the good faith of the licensee, and the history of previous violations. (4)  A citation issued or a fine assessed pursuant to this section shall notify the licensee that if the licensee desires a hearing to contest the finding of a violation, that hearing shall be requested by written notice to the State Department of Public Health within 30 days of the date of issuance of the citation or fine. If a hearing is not requested pursuant to this section, payment of any fine shall not constitute an admission of the violation charged. Hearings shall be held pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(5)  Failure of a licensee to pay a fine within 30 days of the date of assessment of the fine, unless assessment of the fine or the citation is being appealed, may result in further legal action being taken by the State Department of Public Health. If a licensee does not contest a citation or pay the fine, the full amount of the fine shall be added to the fee for renewal of the license. A license shall not be renewed without payment of the renewal fee, including the amount of the fine.
(6)  A citation may be issued without the assessment of an administrative fine. (7)  The State Department of Public Health may limit the assessment of administrative fines to only particular violations of the chapter and establish any other requirement for implementation of the citation system by regulation. (b)  Notwithstanding any other law, if a fine is paid to satisfy an assessment based on the finding of a violation, payment of the fine shall be represented as satisfactory resolution of the matter for purposes of public disclosure.

19347.2.

The State Department of Public Health may, in addition to the administrative citation system authorized by Section 19347.1, also establish by regulation a similar system for the issuance of an administrative citation to an unlicensed person who is acting in the capacity of a licensee under the jurisdiction of the State Department of Public Health as pertains to this chapter. The administrative citation system authorized by this section shall meet the requirements of Section 19347.1 and shall not be applied to an unlicensed person who is otherwise exempt from the licensing provisions of this chapter. The establishment of an administrative citation system for unlicensed activity does not preclude the use of other enforcement statutes for unlicensed activities at the discretion of the State Department of Public Health. 19347.3.

In determining whether to exercise its discretion when enforcing this chapter, the State Department of Public Health may consider whether the public interest will be adequately served in the circumstances by a suitable written notice or warning. The State Department of Public Health may also require licensees to provide it with a written plan of correction and correct a violation within a timeframe the State Department of Public Health deems necessary under the circumstances. 19347.4.

The State Department of Public Health may notify the public regarding any medical cannabis product when the State Department of Public Health deems it necessary for the protection of the health and safety of the consumer or for his or her protection from fraud.
19347.5.
(a)  A medical cannabis product is misbranded if it is any of the following:
(1)  Manufactured, packed, or held in this state in a manufacturing site not duly licensed as provided in this chapter. (2)  Its labeling is false or misleading in any particular. (3)  Its labeling or packaging does not conform to the requirements of Section 19347 or any other labeling or packaging requirement established pursuant to this chapter.
(b)  It is unlawful for any person to manufacture, sell, deliver, hold, or offer for sale a medical cannabis product that is misbranded.
(c)  It is unlawful for any person to misbrand a medical cannabis product. 118Exhibit 3

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(d) It is unlawful for any person to receive in commerce a medical cannabis product that is misbranded or to deliver or offer for delivery any such medical cannabis product.

19347.6.
(a)  A medical cannabis product is adulterated if it is any of the following:
(1)  It has been produced, prepared, packed, or held under insanitary conditions in which it may have become contaminated with filth or in which it may have been rendered injurious. (2)  It consists in whole or in part of any filthy, putrid, or decomposed substance. (3)  It bears or contains any poisonous or deleterious substance that may render it injurious to users under the conditions of use suggested in the labeling or under conditions as are customary or usual. (4)  It bears or contains a substance that is restricted or limited under this chapter or regulations promulgated pursuant to this chapter and the level of substance in the product exceeds the limits specified pursuant to this chapter or in regulation.
(5)  Its concentrations differ from, or its purity or quality is below, that which it is represented to possess. (6)  The methods, facilities, or controls used for its manufacture, packing, or holding do not conform to or are not operated or administered in conformity with practices established by regulations adopted under this chapter to ensure that the medical cannabis product meets the requirements of this chapter as to safety and has the concentrations it purports to have and meets the quality and purity characteristics that it purports or is represented to possess.
(7)  Its container is composed, in whole or in part, of any poisonous or deleterious substance that may render the contents injurious to health.
(8)  It is an edible cannabis product and any substance has been mixed or packed with it after testing by a testing laboratory so as to reduce its quality or concentration or if any substance has been substituted, wholly or in part, for the edible cannabis product.
(b)  It is unlawful for a person to manufacture, sell, deliver, hold, or offer for sale a medical cannabis product that is adulterated.
(c)  It is unlawful for any person to adulterate a medical cannabis product. (d)  It is unlawful for any person to receive in commerce a medical cannabis product that is adulterated or to deliver or proffer for delivery any such medical cannabis product.

19347.7.
(a)  When the State Department of Public Health has evidence that a medical cannabis product is adulterated or misbranded, the department shall notify the manufacturer.
(b)  The State Department of Public Health may order a manufacturer to immediately cease distribution of a medical cannabis product and recall the product if the department determines both of the following:
(1)  The manufacture, distribution, or sale of the medical cannabis product creates or poses an immediate and serious threat to human life or health.
(2)  Other procedures available to the State Department of Public Health to remedy or prevent the occurrence of the situation would result in an unreasonable delay.
(c)  The State Department of Public Health shall provide the manufacturer an opportunity for an informal proceeding on the matter, as determined by the department, within five days, on the actions required by the order and on why the product should not be recalled. Following the proceeding, the order shall be affirmed, modified, or set aside as determined appropriate by the State Department of Public Health.
(d)  The State Department of Public Health’s powers set forth in this section expressly include the power to order movement, segregation, isolation, or destruction of medical cannabis products, as well as the power to hold those products in place. (e)  If the State Department of Public Health determines it is necessary, it may issue the mandatory recall order and may use all appropriate measures to obtain reimbursement from the manufacturer for any and all costs associated with these orders. All funds obtained by the State Department of Public Health from these efforts shall be deposited into a fee account specific to the State Department of Public Health, to be established in the Medical Cannabis Regulation and Safety Act Fund, and will be available for use by the department upon appropriation by the legislature. (f)  It is unlawful for any person to move or allow to be moved a medical cannabis product subject to an order issued pursuant to this section unless that person has first obtained written authorization from the State Department of Public Health.

19347.8.
(a) Whenever the State Department of Public Health finds or has probable cause to believe that any medical cannabis product is adulterated or misbranded within the meaning of this chapter or the sale of the medical cannabis product would be in violation of this chapter, the department shall affix to the medical cannabis product, or component thereof, a tag or other 119Exhibit 3

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appropriate marking. The State Department of Public Health shall give notice that the medical cannabis product is, or is suspected of being, adulterated or misbranded, or the sale of which would be in violation of this chapter and has been embargoed and that no person shall remove or dispose of the medical cannabis product by sale or otherwise until permission for removal or disposal is given by the State Department of Public Health or a court. (b)  It is unlawful for any person to remove, sell, or dispose of a detained or embargoed medical cannabis product without written permission of the State Department of Public Health or a court. A violation of this subdivision is subject to a fine of not more than ten thousand dollars ($10,000).
(c)  If the adulteration or misbranding can be corrected by proper labeling or additional processing of the medical cannabis product and all of the provisions of this chapter can be complied with, the claimant or owner may request the State Department of Public Health to remove the tag or other marking. If, under the supervision of the State Department of Public Health, the adulteration or misbranding has been corrected, the department may remove the tag or other marking. (d)  When the State Department of Public Health finds that a medical cannabis product that is embargoed is not adulterated, misbranded, or whose sale is not otherwise in violation of this chapter, the State Department of Public Health may remove the tag or other marking.
(e)  The medical cannabis product may be destroyed by the owner pursuant to a corrective action plan approved by the State Department of Public Health and under the supervision of the department. The medical cannabis product shall be destroyed at the expense of the claimant or owner.
(f)  A proceeding for condemnation of any medical cannabis product under this section shall be subject to appropriate notice to, and the opportunity for a hearing with regard to, the person affected in accordance with Section 19308. (g)   a finding by the administrative law judge that the medical cannabis product is adulterated, misbranded, or whose sale is otherwise in violation of this chapter, the administrative law judge may direct the medical cannabis product to be destroyed at the expense of the claimant or owner. The administrative law judge may also direct a claimant or owner of the affected medical cannabis product to pay fees and reasonable costs, including the costs of storage and testing, incurred by the bureau or the Department of Public Health in investigating and prosecuting the action taken pursuant to this section.
(h)  When, under the supervision of the State Department of Public Health, the adulteration or misbranding has been corrected by proper labeling or additional processing of the medical cannabis and medical cannabis product and when all provisions of this chapter have been complied with, and after costs, fees, and expenses have been paid, the State Department of Public Health may release the embargo and remove the tag or other marking and the medical cannabis shall no longer be held for sale in violation of this chapter. (i)  The State Department of Public Health may condemn any medical cannabis product under provisions of this chapter. The medical cannabis product shall be destroyed at the expense of the claimant or owner.

ARTICLE 11. TAXATION (19348 – 19348)
19348.
(a)
(1)  A county may impose a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing medical cannabis or medical cannabis products by a licensee operating pursuant to this chapter.
(2)  The board of supervisors shall specify in the ordinance proposing the tax the activities subject to the tax, the applicable rate or rates, the method of apportionment, if necessary, and the manner of collection of the tax. The tax may be imposed for general governmental purposes or for purposes specified in the ordinance by the board of supervisors.
(3)  In addition to any other method of collection authorized by law, the board of supervisors may provide for the collection of the tax imposed pursuant to this section in the same manner, and subject to the same penalties and priority of lien, as other charges and taxes fixed and collected by the county. A tax imposed pursuant to this section is a tax and not a fee or special assessment. The board of supervisors shall specify whether the tax applies throughout the entire county or within the unincorporated area of the county. (4)  The tax authorized by this section may be imposed upon any or all of the activities set forth in paragraph (1), as specified in the ordinance, regardless of whether the activity is undertaken individually, collectively, or cooperatively, and regardless of whether the activity is for compensation or gratuitous, as determined by the board of supervisors. (b)  A tax imposed pursuant to this section shall be subject to applicable voter approval requirements imposed by law. (c)  This section is declaratory of existing law and does not limit or prohibit the levy or collection of any other fee, charge, or tax, or a license or service fee or charge upon, or related to, the activities set forth in subdivision (a) as otherwise provided by law. This section shall not be construed as a limitation upon the taxing authority of a county as provided by law. (d)  This section shall not be construed to authorize a county to impose a sales or use tax in addition to the sales and use tax imposed under an ordinance conforming to the provisions of Sections 7202 and 7203 of the Revenue and Taxation Code. 120Exhibit 3

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ARTICLE 13. FUNDING (19350 – 19352)
19350.

Each licensing authority shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter, as follows:
(a) Each licensing authority shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this chapter. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this chapter as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 19335, but shall not exceed the reasonable regulatory costs to the licensing authority. (b) The total fees assessed pursuant to this chapter shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this chapter. (c) All license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business. License fees shall cover the costs of administering the track and trace program managed by the Department of Food and Agriculture, as identified in Article 7.5 (commencing with Section 19335). (d) The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be established in the Medical Cannabis Regulation and Safety Act Fund. Moneys in the licensing authority fee accounts shall be used, upon appropriation of the Legislature, by the designated licensing authority for the administration of this chapter.

19351.
(a)  The Medical Cannabis Regulation and Safety Act Fund is hereby established within the State Treasury. Moneys in the fund shall be available upon appropriation by the Legislature. Notwithstanding Section 16305.7 of the Government Code, the fund shall include any interest and dividends earned on the moneys in the fund. (b)
(1)  Funds for the establishment and support of the regulatory activities pursuant to this chapter shall be advanced as a General Fund or special fund loan, and shall be repaid by the initial proceeds from fees collected pursuant to this chapter or any rule or regulation adopted pursuant to this chapter, by January 1, 2022. Should the initial proceeds from fees not be sufficient to repay the loan, moneys from the Medical Cannabis Fines and Penalties Account shall be made available to the bureau, by appropriation of the Legislature, to repay the loan. (2)  Funds advanced pursuant to this subdivision shall be appropriated to the bureau, which shall distribute the moneys to the appropriate licensing authorities, as necessary to implement the provisions of this chapter. (3)  The Director of Finance may provide an initial operating loan from the General Fund to the Medical Cannabis Regulation and Safety Act Fund that does not exceed ten million dollars ($10,000,000). (c)  Except as otherwise provided, all moneys collected pursuant to this chapter as a result of fines or penalties imposed under this chapter shall be deposited directly into the Medical Cannabis Fines and Penalties Account, which is hereby established within the fund, and shall be available, upon appropriation by the Legislature to the bureau, for the purposes of funding the enforcement grant program pursuant to subdivision (d). (d)
(1)  The bureau shall establish a grant program to allocate moneys from the Medical Cannabis Fines and Penalties Account to state and local entities for the following purposes:
(A)  To assist with medical cannabis regulation and the enforcement of this chapter and other state and local laws applicable to cannabis activities.
(B)  For allocation to state and local agencies and law enforcement to remedy the environmental impacts of cannabis cultivation.
(2)  The costs of the grant program under this subdivision shall, upon appropriation by the Legislature, be paid for with moneys in the Medical Cannabis Fines and Penalties Account. (3)  The grant program established by this subdivision shall only be implemented after the loan specified in this section is repaid.
19352.

The sum of ten million dollars ($10,000,000) is hereby appropriated from the Medical Marijuana Regulation and Safety Act Fund to the Department of Consumer Affairs to begin the activities of the Bureau of Medical Marijuana Regulation. Funds appropriated pursuant to this section shall not include moneys received from fines or penalties.

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ARTICLE 14. REPORTING (19353 – 19354)
19353.

Beginning on March 1, 2023, and on or before March 1 of each following year, each licensing authority shall prepare and submit to the Legislature an annual report on the authority’s activities and post the report on the authority’s Internet Web site. The report shall include, but not be limited to, the following information for the previous fiscal year:
(a) The amount of funds allocated and spent by the licensing authority for medical cannabis licensing, enforcement, and administration.
(b) The number of state licenses issued, renewed, denied, suspended, and revoked, by state license category. (c) The average time for processing state license applications, by state license category. (d) The number of appeals from the denial of state licenses or other disciplinary actions taken by the licensing authorities and by local law enforcement agencies in conjunction with the licensing authorities or the bureau. (e) The number of complaints submitted by citizens or representatives of cities or counties regarding licensees, provided as both a comprehensive statewide number and by geographical region. (f) The number and type of enforcement activities conducted by the licensing authorities and by local law enforcement agencies in conjunction with the licensing authorities or the bureau. (g) The number, type, and amount of penalties, fines, and other disciplinary actions taken by the licensing authorities.

19354.

The bureau shall contract with the California Marijuana Research Program, known as the Center for Medicinal Cannabis Research, authorized pursuant to Section 11362.9 of the Health and Safety Code, to develop a study that identifies the impact that cannabis has on motor skills.

ARTICLE 15. PRIVACY (19355 – 19355)
19355.
(a) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by the office or licensing authorities for the purposes of administering this chapter are confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to this chapter, or a local ordinance. (b) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by the bureau for the purposes of administering this chapter shall be maintained in accordance with Chapter 1 (commencing with Section 123100) of Part 1 of Division 106 of the Health and Safety Code, Part

2.6 (commencing with Section 56) of Division 1 of the Civil Code, and other state and federal laws relating to confidential patient information.
(c)  Nothing in this section precludes the following:
(1)  Employees of the bureau or any licensing authorities notifying state or local agencies about information submitted to the agency that the employee suspects is falsified or fraudulent. (2)  Notifications from the bureau or any licensing authorities to state or local agencies about apparent violations of this chapter or applicable local ordinance.
(3)  Verification of requests by state or local agencies to confirm licenses and certificates issued by the regulatory authorities or other state agency.
(4)  Provision of information requested pursuant to a court order or subpoena issued by a court or an administrative agency or local governing body authorized by law to issue subpoenas. (d)  Information shall not be disclosed by any state or local agency beyond what is necessary to achieve the goals of a specific investigation, notification, or the parameters of a specific court order or subpoena.

ARTICLE 17. PENALTIES AND VIOLATIONS (19360 – 19360) 19360.
(a) A person engaging in commercial cannabis activity without a license and associated unique identifiers required by this chapter shall be subject to civil penalties of up to twice the amount of the license fee for each violation, and the department, state or local authority, or court may order the destruction of medical cannabis associated with that violation.

A violator shall be responsible for the cost of the destruction of medical cannabis associated with his or her violation, in addition to any amount covered by a bond required as a condition of licensure. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section by a licensing authority shall be deposited into the Medical Cannabis Fines and Penalties Account established pursuant to Section 19351. 122Exhibit 3

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(b) If an action for civil penalties is brought against a licensee pursuant to this chapter by the Attorney General on behalf of the people, the penalty collected shall be deposited into the Medical Cannabis Fines and Penalties Account. If the action is brought by a district attorney or county counsel, the penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If the action is brought by a city attorney or city prosecutor, the penalty collected shall be paid to the treasurer of the city or city and county in which the judgment was entered. If the action is brought by a city attorney and is adjudicated in a superior court located in the unincorporated area or another city in the same county, the penalty shall be paid one‐half to the treasurer of the city in which the complaining attorney has jurisdiction and one‐half to the treasurer of the county in which the judgment is entered. (c) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person or entity engaging in cannabis activity in violation of this chapter, including, but not limited to, those individuals covered under Section 11362.7 of the Health and Safety Code.

LABOR CODE
CHAPTER 6. OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD (140 – 147.5) 147.5.
(a) By January 1, 2017, the Division of Occupational Safety and Health shall convene an advisory committee to evaluate whether there is a need to develop industry‐specific regulations related to the activities of facilities issued a license pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code. (b) By July 1, 2017, the advisory committee shall present to the board its findings and recommendations for consideration by the board. By July 1, 2017, the board shall render a decision regarding the adoption of industry‐specific regulations pursuant to this section.

GOVERNMENT CODE
ARTICLE 7.5 SUNSET REVIEW (9147.7)
9147.7.
(a)  For the purpose of this section, “eligible agency” means any agency, authority, board, bureau, commission, conservancy, council, department, division, or office of state government, however denominated, excluding an agency that is constitutionally created or an agency related to postsecondary education, for which a date for repeal has been established by statute on or after January 1, 2011.
(b)  The Joint Sunset Review Committee is hereby created to identify and eliminate waste, duplication, and inefficiency in government agencies. The purpose of the committee is to conduct a comprehensive analysis over 15 years, and on a periodic basis thereafter, of every eligible agency to determine if the agency is still necessary and cost effective. (c)  Each eligible agency scheduled for repeal shall submit to the committee, on or before December 1 prior to the year it is set to be repealed, a complete agency report covering the entire period since last reviewed, including, but not limited to, the following:
(1)  The purpose and necessity of the agency.
(2)  A description of the agency budget, priorities, and job descriptions of employees of the agency. (3)  Any programs and projects under the direction of the agency. (4)  Measures of the success or failures of the agency and justifications for the metrics used to evaluate successes and failures.
(5)  Any recommendations of the agency for changes or reorganization in order to better fulfill its purpose. (d)  The committee shall take public testimony and evaluate the eligible agency prior to the date the agency is scheduled to be repealed. An eligible agency shall be eliminated unless the Legislature enacts a law to extend, consolidate, or reorganize the eligible agency. No eligible agency shall be extended in perpetuity unless specifically exempted from the provisions of this section. The committee may recommend that the Legislature extend the statutory sunset date for no more than one year to allow the committee more time to evaluate the eligible agency. (e)  The committee shall be comprised of 10 members of the Legislature. The Senate Committee on Rules shall appoint five members of the Senate to the committee, not more than three of whom shall be members of the same political party. The Speaker of the Assembly shall appoint five members of the Assembly to the committee, not more than three of whom shall be members of the same political party. Members shall be appointed within 15 days after the commencement of the regular session. Each member of the committee who is appointed by the Senate Committee on Rules or the Speaker of the 123Exhibit 3

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Assembly shall serve during that committee member’s term of office or until that committee member no longer is a Member of the Senate or the Assembly, whichever is applicable. A vacancy on the committee shall be filled in the same manner as the original appointment. Three Assembly Members and three Senators who are members of the committee shall constitute a quorum for the conduct of committee business. Members of the committee shall receive no compensation for their work with the committee.
(f) The committee shall meet not later than 30 days after the first day of the regular session to choose a chairperson and to establish the schedule for eligible agency review provided for in the statutes governing the eligible agencies. The chairperson of the committee shall alternate every two years between a Member of the Senate and a Member of the Assembly, and the vice chairperson of the committee shall be a member of the opposite house as the chairperson. (g) This section shall not be construed to change the existing jurisdiction of the budget or policy committees of the Legislature.
(h) This section shall not apply to the Bureau of Medical Marijuana Regulation.

FISH AND GAME CODE
DIVISION 2. DEPARTMENT OF FISH AND WILDLIFE
CHAPTER 6. FISH AND WILDLIFE PROTECTION AND CONSERVATION 1602.
(a)  An entity may not substantially divert or obstruct the natural flow of, or substantially change or use any material from the bed, channel, or bank of, any river, stream, or lake, or deposit or dispose of debris, waste, or other material containing crumbled, flaked, or ground pavement where it may pass into any river, stream, or lake, unless all of the following occur:
(1)  The department receives written notification regarding the activity in the manner prescribed by the department. The notification shall include, but is not limited to, all of the following:
(A)  A detailed description of the project’s location and a map. (B)  The name, if any, of the river, stream, or lake affected. (C)  A detailed project description, including, but not limited to, construction plans and drawings, if applicable. (D)  A copy of any document prepared pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code.
(E)  A copy of any other applicable local, state, or federal permit or agreement already issued. (F) Any other information required by the department.
(2)  The department determines the notification is complete in accordance with Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code, irrespective of whether the activity constitutes a development project for the purposes of that chapter.
(3)  The entity pays the applicable fees, pursuant to Section 1609. (4)  One of the following occurs:
(A)
(i)  The department informs the entity, in writing, that the activity will not substantially adversely affect an existing fish or wildlife resource, and that the entity may commence the activity without an agreement, if the entity conducts the activity as described in the notification, including any measures in the notification that are intended to protect fish and wildlife resources. (ii)  Each region of the department shall log the notifications of activities where no agreement is required. The log shall list the date the notification was received by the department, a brief description of the proposed activity, and the location of the activity. Each item shall remain on the log for one year. Upon written request by any person, a regional office shall send the log to that person monthly for one year. A request made pursuant to this clause may be renewed annually.
(B)  The department determines that the activity may substantially adversely affect an existing fish or wildlife resource and issues a final agreement to the entity that includes reasonable measures necessary to protect the resource, and the entity conducts the activity in accordance with the agreement. (C)  A panel of arbitrators issues a final agreement to the entity in accordance with subdivision (b) of Section 1603, and the entity conducts the activity in accordance with the agreement. (D)  The department does not issue a draft agreement to the entity within 60 days from the date notification is complete, and the entity conducts the activity as described in the notification, including any measures in the notification that are intended to protect fish and wildlife resources.

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(b)
(1)  If an activity involves the routine maintenance and operation of water supply, drainage, flood control, or waste treatment and disposal facilities, notice to and agreement with the department shall not be required after the initial notification and agreement, unless the department determines either of the following:
(A)  The work described in the agreement has substantially changed. (B)  Conditions affecting fish and wildlife resources have substantially changed, and those resources are adversely affected by the activity conducted under the agreement. (2)  This subdivision applies only if notice to, and agreement with, the department was attained prior to January 1, 1977, and the department has been provided a copy of the agreement or other proof of the existence of the agreement that satisfies the department, if requested.
(c)
(1)  Notwithstanding subdivision (a), an entity shall not be required to obtain an agreement with the department pursuant to this chapter for activities authorized by a license or renewed license for cannabis cultivation issued by the Department of Food and Agriculture for the term of the license or renewed license if all of the following occur:
(A)  The entity submits all of the following to the department:
(i)  The written notification described in paragraph (1) of subdivision (a). (ii)  A copy of the license or renewed license for cannabis cultivation issued by the Department of Food and Agriculture that includes the requirements specified in subdivisions (d), (e), and (f) of Section 19332.2 of the Business and Professions Code.
(iii)  The fee specified in paragraph (3) of subdivision (a). (B)  The department determines in its sole discretion that compliance with the requirements specified in subdivisions (d), (e), and (f) of Section 19332.2 of the Business and Professions Code that are included in the license will adequately protect existing fish and wildlife resources that may be substantially adversely affected by the cultivation without the need for additional measures that the department would include in a draft streambed alteration agreement in accordance with Section 1603.
(C)  The department notifies the entity in writing that the exemption applies to the cultivation authorized by the license or renewed license.
(2)  The department shall notify the entity in writing whether the exemption in paragraph (1) applies to the cultivation authorized by the license or renewed license within 60 days from the date that the notification is complete and the fee has been paid.
(3)  If an entity receives an exemption pursuant to this subdivision and fails to comply with any of the requirements described in subdivision (d), (e), or (f) of Section 19332.2 of the Business and Professions Code that are included in the license, the failure shall constitute a violation under this section, and the department shall notify the Department of Food and Agriculture of any enforcement action taken.
(d)  It is unlawful for any person to violate this chapter.

1617.
(a)  The department may adopt regulations establishing the requirements and procedure for the issuance of a general agreement in a geographic area for a category or categories of activities related to cannabis cultivation. (b)  A general agreement adopted by the department subsequent to adoption of regulations under this section shall be in lieu of an individual agreement described in subparagraph (B) of paragraph (4) of subdivision (a) of Section 1602. (c)  Subparagraph (D) of paragraph (4) of subdivision (a) of Section 1602 and all other time periods to process agreements specified in this chapter do not apply to the issuance of a general agreement adopted by the department pursuant to this section.
(d)  The department general agreement issued by the department pursuant to this section is a final agreement and is not subject to Section 1603 or 1604.
(e)  The department shall charge a fee for a general agreement adopted by the department under this section in accordance with Section 1609.
(f) Regulations adopted pursuant to this section, and any amendment thereto, shall not be subject to Division 13 (commencing with Section 21000) of the Public Resources Code.

DIVISION 9. FINES AND PENALTIES
CHAPTER 1. GENERAL PROVISIONS (12000 ‐12029)
12025.2.

The director or his or her designee may issue a complaint to any person or entity in accordance with Section 1055 of the Water Code alleging a violation for which liability may be imposed under Section 1052 or 1847 of the Water Code that harms fish and 125Exhibit 3

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wildlife resources. The complaint is subject to the substantive and procedural requirements set forth in Section 1055 of the Water Code, and the department shall be designated a party to any proceeding before the State Water Resources Control Board regarding a complaint filed pursuant to this section. 12029.
(a)  The Legislature finds and declares all of the following:
(1)  The environmental impacts associated with cannabis cultivation have increased, and unlawful water diversions for cannabis irrigation have a detrimental effect on fish and wildlife and their habitat, which are held in trust by the state for the benefit of the people of the state.
(2)  The remediation of existing cannabis cultivation sites is often complex and the permitting of these sites requires greater department staff time and personnel expenditures. The potential for cannabis cultivation sites to significantly impact the state’s fish and wildlife resources requires immediate action on the part of the department’s lake and streambed alteration permitting staff.
(b)  In order to address unlawful water diversions and other violations of the Fish and Game Code associated with cannabis cultivation, the department shall establish the watershed enforcement program to facilitate the investigation, enforcement, and prosecution of these offenses.
(c)  The department, in coordination with the State Water Resources Control, Board and the Department of Food and Agriculture, shall establish a permanent multiagency task force to address the environmental impacts of cannabis cultivation. The multiagency task force, to the extent feasible and subject to available, resources, shall expand its enforcement efforts on a statewide level to ensure the reduction of adverse impacts of cannabis cultivation on fish and wildlife and their habitats throughout the state.
(d)  In order to facilitate the remediation and permitting of cannabis cultivation sites, the department may adopt regulations to enhance the fees on any entity subject to Section 1602 for cannabis cultivation sites that require remediation. The fee schedule established pursuant to this subdivision shall not exceed the fee limits in Section 1609.

FOOD AND AGRICULTURAL CODE
DIVISION 15. MILK AND MILK PRODUCTS ACT OF 1947
PART 3. MANUFACTURED PRODUCTS
CHAPTER 3. BUTTER
ARTICLE 1. GENERAL PROVISIONS
37104.

Notwithstanding Section 19300.5 of the Business and Professions Code, butter purchased from a licensed milk products plant or retail location that is subsequently infused or mixed with medical cannabis at the premises or location that is not subject to licensing as a milk product plant is exempt from the provisions of this division DIVISION 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE ‐VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS
CHAPTER 2. CALIFORNIA SEED LAW
ARTICLE 8. LABELING OF SEEDS (52451 – 52456)
52452.
(a)   Except as otherwise provided in Section 52454, each container of agricultural seed that is for sale or sold within this state for sowing, purposes shall bear upon it or have attached to it in a conspicuous place a plainly written or printed label or tag in the English language that includes all of the following information:
(1)  The commonly accepted name of the kind, kind and variety, or kind and type of each agricultural seed component in excess of 5 percent of the whole, and the percentage by weight of each. If the aggregate of agricultural seed components, each present in an amount not exceeding 5 percent of the whole, exceeds 10 percent of the whole, each component in excess of 1 percent of the whole shall be named together with the percentage by weight of each. If more than one component is required to be named, the names of all components shall be shown in letters of the same type and size.
(2)  The lot number or other lot identification.
(3)  The percentage by weight of all weed seeds.
(4)  The name and approximate number of each kind of restricted noxious weed seed per pound. (5)  The percentage by weight of any agricultural seed except that which is required to be named on the label. 126Exhibit 3

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(6)  The percentage by weight of inert matter. If a percentage by weight is required to be shown by any provision of this section, that percentage shall be exclusive of any substance that is added to the seed as a coating and shown on the label as such.
(7)  For each agricultural seed in excess of 5 percent of the whole, stated in accordance with paragraph (1), the percentage of germination exclusive of hard seed, the percentage of hard seed, if present, and the calendar month and year the test was completed to determine the percentages. Following the statement of those percentages, the additional statement “total germination and hard seed” may be stated. (8)  The name and address of the person who labeled the seed or of the person who sells the seed within this state. (b)  Subdivision (a) does not apply in the following instances:
(1)  The sale is an occasional sale of seed grain by the producer of the seed grain to his or her neighbor for use by the purchaser within the county of production.
(2)  Any cannabis seed, as defined in subdivision (f) of Section 19300.5 of the Business and Professions Code, sold or offered for sale in the state.
(c)  All determinations of noxious weed seeds are subject to tolerances and methods of determination prescribed in the regulations that are adopted pursuant to this chapter.
(d)  For purposes of this section, “neighbor” means a person who lives in close proximity, not to exceed three miles, to another.

HEALTH AND SAFETY CODE
DIVISION 10.

CHAPTER 6. OFFENSES AND PENALTIES
ARTICLE 2. MARIJUANA (11357 – 11362.9)
11362.775.
(a)   Subject to subdivision (b), qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate within the State of California in order collectively or cooperatively to cultivate cannabis for medical purposes, shall not solely on the basis of that fact be subject to state criminal sanctions under Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570. (b)   A collective or cooperative that operates pursuant to this section and manufactures medical cannabis products shall not, solely on the basis of that fact, be subject to state criminal sanctions under Section 11379.6 if the collective or cooperative abides by all of the following requirements:
(1)  The collective or cooperative does either or both of the following:
(A)  Utilizes only manufacturing processes that are either solventless or that employ only nonflammable, nontoxic solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C.

Sec. 301 et seq.).
(B)  Utilizes only manufacturing processes that use solvents exclusively within a closed‐loop system that meets all of the following requirements:
(i)  The system uses only solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).
(ii)   The system is designed to recapture and contain solvents during the manufacturing process, and otherwise prevent the off‐gassing of solvents into the ambient atmosphere to mitigate the risks of ignition and explosion during the manufacturing process.
(iii)   A licensed engineer certifies that the system was commercially manufactured, safe for its intended use, and built to codes of recognized and generally accepted good engineering practices, including, but not limited to, the American Society of Mechanical Engineers (ASME), the American National Standards Institute (ANSI), Underwriters Laboratories (UL), the American Society for Testing and Materials (ASTM), or OSHA Nationally Recognized Testing Laboratories (NRTLs).
(iv) The system has a certification document that contains the signature and stamp of a professional engineer and the serial number of the extraction unit being certified. (2)  The collective or cooperative receives and maintains approval from the local fire official for the closed‐loop system, other equipment, the extraction operation, and the facility. (3)  The collective or cooperative meets required fire, safety, and building code requirements in one or more of the following:
(A)  The California Fire Code.
(B)  The National Fire Protection Association (NFPA) standards. (C)  International Building Code (IBC).
127Exhibit 3

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Bell Gardens City CouncilMay 8, 2023

Bell Gardens City Council
May 8, 2023