Beverly Hills City Council
October 3, 2023

AGENDA REPORT
Meeting Date: October 3, 2023
Item Number:

To: Honorable Mayor and City Council
From: Cynthia Owens, Municipal Affairs Program Manager
Subject: AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING Attachments: 1. Proposed Ordinance

2. Ordinance 17-O-2734

3. SB 1186 – Bill Text

4. Planning Commission Resolution No. 2036

RECOMMENDATION
Staff recommends the City Council conduct a public hearing on AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING ARTICLE 47 OF CHAPTER 3 OF TITLE 10 OF THE BEVERLY HILLS MUNICIPAL CODE ESTABLISHING NONSTOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS RETAIL AS A

CONDITIONALLY PERMITTED USE FOR PROPERTIES LOCATED IN PORTIONS OF THE C-3 ZONE AND ADDING ARTICLE 23 TO CHAPTER 2 OF TITLE 4 OF THE

BEVERLY HILLS MUNICIPAL CODE ESTABLISHING REGULATORY AND

OPERATIONAL RESTRICTIONS FOR SUCH RETAILERS AND MAKING A

DETERMINATION OF EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (the “Ordinance”).

Once the public hearing concludes, staff recommends the City Council move to waive the full reading of the Ordinance (Attachment 1) and to have the Ordinance be introduced and read by title only.

ARTICLE 47 OF CHAPTER 3 OF TITLE 10 OF THE BEVERLY HILLS MUNICIPAL CODE ESTABLISHING NON-STOREFRONT, DELIVERYONLY MEDICAL CANNABIS RETAIL AS A CONDITIONALLY

PERMITTED USE FOR PROPERTIES LOCATED IN PORTIONS OF
THE C-3 ZONE AND ADDING ARTICLE 23 TO CHAPTER 2 OF TITLE 4 OF THE BEVERLY HILLS MUNICIPAL CODE ESTABLISHING

REGULATORY AND OPERATIONAL RESTRICTIONS FOR SUCH

RETAILERS AND MAKING A DETERMINATION OF EXEMPTION

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Meeting Date: October 3, 2023

INTRODUCTION
This item requests the City Council conduct a public hearing on an Ordinance which amends the Beverly Hills Municipal Code (the “BHMC”) to allow for the establishment of non-storefront, delivery-only medical cannabis retail businesses as a conditionally permitted use in the City and adds Article 32 to Chapter 2 of Title 4 of the BHMC establishing regulatory and operational restrictions for such retailers. At the conclusion of the public hearing, staff is requesting the City Council move to waive the full reading of the Ordinance and that the Ordinance be introduced and read by title only. Alternatively, the City Council may propose changes to the ordinance and/or recommend a continuance of the public hearing.

DISCUSSION
History of Medicinal Cannabis in California
California was the first state in the nation to allow for the medical use of marijuana with the passage of Proposition 215 in 1996. Proposition 215 protected qualified patients and primary caregivers from prosecution related to the possession and cultivation of cannabis for medicinal purposes.

In 2015, the state legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA). For the first time, MCRSA established a comprehensive, statewide licensing and regulatory framework for the cultivation, manufacture, transportation, testing, distribution, and sale of medicinal cannabis. Beverly Hills maintained its prohibition on the sale of medical cannabis after the passage of MCRSA.

In November 2016, California voters passed Proposition 64, the "Control, Regulate and Tax Adult Use of Marijuana Act" (Proposition 64), by 57 percent, with 64 percent of voters in Beverly Hills approving this proposition. Proposition 64 legalized adult-use cannabis under state law for use and personal cultivation by adults 21 or older, which began on January 1, 2018. It also imposed state taxes on cannabis sales and commercial cultivation; provided for industry licensing and established standards for cannabis products; and allowed local regulation and taxation of cannabis businesses.

Proposition 64 specifically provided that local jurisdictions may still adopt and enforce ordinances to regulate adult use cannabis activities/businesses through local zoning, land use, and police powers. Of note, while Proposition 64 legalized adult possession and cultivation of recreational marijuana, it in no way impinged on the rights of medical marijuana patients under Proposition 215.

In June 2017, the California State Legislature passed a budget trailer bill, SB 94 (Committee on Budget and Fiscal Review, Chapter 27, Statutes of 2017), that integrated MCRSA with Proposition 64 to create the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), the current regulatory structure for both medicinal and adult-use cannabis.

In September 2017, the City Council made findings that prohibitions on commercial cannabis activity were necessary for the preservation and protection of the public health, safety, and welfare of the City when adopting Ordinance 17-O-2734 (Attachment 2). The 2017 ordinance added Article 47 to Chapter 3 of Title 10 of the BHMC and generally prohibited all commercial cannabis activity in the City with limited exceptions such as allowing specifically for the delivery of medical cannabis from a state-licensed business legally operating from another jurisdiction and allowing other commercial cannabis activity that the City is required by State law to permit.

Meeting Date: October 3, 2023

In 2022, State Senator Scott Wiener introduced Senate Bill 1186 (“SB 1186”), the Medicinal Cannabis Patients’ Right of Access Act. According to Senator Wiener, access to medicinal cannabis was adversely impacted given MAUCRSA gave cities the authority to ban all cannabis activity. According to the analysis of SB 1186 approximately 53 percent of counties in California have permitted cannabis business operations, leaving almost half the state without access to legal cannabis in a local county or city. As of August 2022, there were 979 brick and mortar storefronts and 391 delivery operators statewide.

Beginning January 1, 2024, SB 1186 prohibits a city from adopting or enforcing any regulation that directly or indirectly prohibits the establishment of a physical premises to provide the non-storefront retail delivery of medicinal cannabis to patients or caregivers in a local jurisdiction. This bill was signed by Governor Newsom on September 18, 2022.

Because the regulatory framework for adult-use and medicinal cannabis were consolidated under MAUCRSA in 2017, local jurisdictions were permitted to make the same regulatory decision for all uses of cannabis prior to the passage of SB 1186. As Proposition 64 only addressed allowing cities to have local control over the recreational use of cannabis, it is believed that SB 1186, which requires local jurisdictions to allow retail sale by delivery of medical cannabis, is not in conflict with Proposition 64.

Limits Imposed by SB 1186 on Local Authority
Under SB 1186 (Attachment 3), a local government cannot adopt or enforce regulations, which prohibit the “retail sale by delivery” of medicinal cannabis from a business within their jurisdiction. This includes any regulation which has the effect of prohibiting patients or their caregivers within a local government from purchasing, by delivery, sufficient medicinal cannabis to meet their medical needs in a timely and readily accessible manner. Under SB 1186, cities cannot adopt or enforce an ordinance that:
• Limits the number of businesses authorized to deliver medicinal cannabis in the city.
• Limits the operating hours of medicinal cannabis businesses. • Limits the number or frequency of medicinal cannabis sales by delivery. • Limits the types or quantities of medicinal cannabis authorized to be sold by delivery.
• Prohibits the establishment of physical premises from which retail sale by delivery of medicinal cannabis within the city is conducted by a licensed nonstorefront retailer.

SB 1186 does allow for reasonable regulation on the retail sale by delivery-only of medicinal cannabis via local government police powers, meaning local governments can still engage in implementing regulations for zoning, local licensing, public health and safety restrictions, and taxes. Therefore, the City can adopt or enforce reasonable regulations on the non-storefront retail delivery of medicinal cannabis related to:
• Zoning requirements;
• Security or public health and safety requirements;
• Licensing requirements;
• Imposing or collecting applicable state or local taxes on retail sales of medicinal cannabis occurring within the city; and
Meeting Date: October 3, 2023

• Regulations consistent with requirements or restrictions imposed on cannabis businesses by state law or regulations issued by the Department of Cannabis Control (DCC).

Enforcement in SB 1186
SB 1186 empowers the following persons/entities to take civil action (e.g., file a writ of mandate) to enforce the law:
• Qualified patients and their primary caregivers (as defined under the Compassionate Use Act) that seek to purchase medical cannabis in the local jurisdiction;
• The State Attorney General; and
• Medical cannabis businesses “that seek to offer medical cannabis for sale in the local jurisdiction.” Specifically, this would be Type 9 or 10 M-licensees (i.e., brick and mortar retailer that can deliver or non-storefront retailer that only delivers) that are issued by the DCC.

Existing Municipal Code Provisions
Through the adoption of Ordinance 17-O-2734, the City added Article 47 to Chapter 3 of Title 10 of BHMC, commencing with §10-3-4700. BHMC §10-3-4702 generally prohibits all forms of commercial cannabis activity and uses in Beverly Hills with the exception of allowing for the delivery of medical cannabis from a state licensed business located in another jurisdiction and §10-3-4703 (C) states “any commercial cannabis activity that the City is required by state law to permit within its jurisdiction pursuant to the MAUCRSA.” As discussed above, SB 1186 prevents the City from adopting or enforcing regulations that prohibit the “retail sale by delivery” of medicinal cannabis, including prohibiting the establishment of physical premises from which retail sale by delivery of medicinal cannabis within the city is conducted by a licensed non-storefront retailer. Therefore, the proposed Ordinance before the City Council tonight brings the City into compliance with SB 1186 while providing for reasonable regulation.

Planning Commission Liaison Committee Meeting – June 26, 2023 On June 26, 2023, a Planning Commission Liaison Committee (“Committee”) was held with Vice Mayor Friedman, Councilmember Bosse, then-Planning Commission Chair Myra Demeter, and then-Planning Commission Vice Chair Ross. The Committee recommended the following items be considered for the ordinance:

1. Limiting the ordinance to only allow businesses that provide the non-storefront, delivery-only medical cannabis, which is the minimum requirement set by SB 1186;

2. Prohibiting non-storefront, delivery-only medical cannabis retail businesses from being established in zones R-1, R-1.5, and R-4 and restricting them to portions of the C-3 zone.

3. Prohibiting non-storefront, delivery-only medical cannabis retail businesses from being located on the ground floor of a commercial property;

4. Prohibiting the establishment of non-storefront, delivery-only medical cannabis retail businesses in the pedestrian oriented area (Figure 1), similar to what is in existence for car dealers;
Meeting Date: October 3, 2023

Figure 1: Map of Pedestrian Oriented Area

5. Adding non-storefront, delivery-only medical cannabis retail businesses to the City’s business tax structure as well as developing an application fee and annual inspection fee;

6. Prohibiting non-storefront, delivery-only medical cannabis retail businesses from selling cannabis accessories, branded merchandise of the licensee, and promotional materials;

7. Imposing security requirements due to public health and safety concerns; and

8. Other restrictions which staff may find during the development of the ordinance that provides for the utmost public health and safety for the residents and businesses in Beverly Hills (e.g., prohibiting non-storefront, delivery-only medical cannabis retail businesses from being located within 600 feet of schools, public parks, and day care centers).

Planning Commission Meeting – August 24, 2023
At the August 24, 2023, Planning Commission meeting, staff presented a draft ordinance for the establishment of non-storefront, delivery-only medical cannabis retail businesses as a conditionally permitted use in the City. After questions, comments, and discussion by the Planning Commission, they adopted Planning Commission Resolution No. 2036 (Attachment 5). This resolution made findings that the proposed ordinance is consistent with the City’s General Plan, including the following goals and polices related to supporting businesses in the City:
• Land Use (LU) Goal 2 Community Character and Quality. A built environment that is distinguished by its high level of site planning, architecture, landscape design, and sensitivity to its natural setting and history. • LU Policy 2.9 Public Safety. Require that development be located and designed to promote public safety by providing street-fronting uses, lighting, sightlines, and Meeting Date: October 3, 2023

features that enhance community safety.
• LU Policy 5.8 Encroachment of Incompatible Land Uses. Protect residential neighborhoods from the encroachment of incompatible nonresidential uses and disruptive traffic, to the extent possible. Zoning and design review should assure that compatibility issues are fully addressed when nonresidential development is proposed near or within residential areas.
• LU Policy 11.1 Preservation of Pedestrian-Oriented Retail Shopping Areas.

Preserve, protect and enhance the character of the pedestrian-oriented retail shopping areas, which are typified by a variety of retail shops with displays to attract and hold the interest of pedestrian shoppers, to ensure the continuity of the pedestrian experience.

Since adoption of the Planning Commission Resolution, there have been some minor, non-substantive changes to the business regulation portion of the draft ordinance. This includes, but is not limited to:
1) Changing the video retention requirement from 30 days to 90 days in BHMC 4-2- 2304 (G) (5) to align with state regulations.
2) Adding “…,City Manager, or their respective designee(s)”, “… or other City Department as designated by the City Manager”, or similar language to BHMC 4- 2-2304 (G) (10), 4-2-2304 (G) (12) (c) 4-2-2304 (G) (13), 4-2-2304 (G) (14), 4-2- 2304 (G) (15), and/or 4-2-2304 (L) (3) to increase the City’s flexibility as to whom in the City may review these particular items beyond the Police Department and/or Police Chief.
3) Updating BHMC 10-3-4705 (C) (3) to read “No non-storefront, delivery-only medical cannabis retail shall be permitted on the ground floor of any building.” At the Planning Commission meeting this had read: “No non-storefront, deliveryonly medical cannabis retail shall be permitted in the ground floor.” Attached Draft Ordinance
The proposed Ordinance incorporates code changes to the BHMC for SB 1186 compliance that include, but are not limited to, the following:
• Adds Article 23 to Chapter 2 of Title 4 to establish regulatory and operational requirements for non-storefront, delivery-only medical cannabis retail businesses. • Amends Section 10-3-1604 of Article 16 of Chapter 3 of Title 10 to add “Nonstorefront, delivery-only medical cannabis retail” as a conditionally permitted use, with the remainder of Section 10-3-1604 to remain unchanged. • Adds paragraph “E” to Section 10-3-1654 of Article 16.5 of Chapter 3 of Title 10 to prohibit non-storefront, delivery-only medical cannabis retail uses in a pedestrian oriented area with the remainder of Section 10-3-1654 to remain unchanged.
• Amends paragraph “B” of Section 10-3-3800 of Article 38 of Chapter 3 of Title 10 to add non-storefront, delivery-only medical cannabis retail as a conditionally permitted use with required findings with the remainder of Section 10-3-3800 to remain otherwise unchanged.
• Amends Section 10-3-4701 of Article 47 of Chapter 3 of Title 10 to add definitions of certain terms.
• Amends Section 10-3-4703 of Article 47 of Chapter 3 of Title 10 to add paragraph “D” providing an exemption from the general prohibition on cannabis activity for certain non-storefront, delivery-only medical cannabis retail, with the Meeting Date: October 3, 2023

remainder of Section 10-3-4703 to remain unchanged.
• Adds Section 10-3-4705 to Article 47 of Chapter 3 of Title 10 to specify the standards and requirements for non-storefront, delivery-only medical cannabis retail use.

The draft ordinance contains numerous specifics for each section mentioned above.

While not inclusive, the list below provides some of the highlights from the draft ordinance:
• Provides specifics for the application that must be submitted, including but not limited to:
o An odor mitigation plan;
o A safety and security plan;
o A list of the names and addresses of all libraries, schools, religious institutions, youth centers, and day care centers within 600 feet of the proposed location; and
o State license information.
• Requires the business to obtain a conditional use permit. • Provides that no cannabis product can be visible from outside the location along with no visual display, signage, or condition on the exterior of the business that indicates the type of product being stored or transported from the location. • Prohibits public access to the location, on-site sales, and the issuance of a physician recommendation for medical cannabis from occurring at the location. • Establishes security and surveillance requirements.
• Establishes in transit requirements for the delivery of medical cannabis. • Requires notification to the Police Department within 24 hours if there is a significant discrepancy in the inventory as well as the loss or unauthorized alteration of records related to medical cannabis.
• Prohibits non-storefront, delivery-only medical cannabis retail from locating in the ground floor of any building.
• Provides there will be adequate buffering between the use and residential areas and will not adversely interfere with the use and enjoyment of residential properties in the vicinity of the proposed development. Additionally, the ordinance prohibits this use within 600’ of schools, parks, and locations where children gather.
• Provides the proposed use will not create excessive noise, unpleasant odors, noxious fumes, excessive lighting, increased litter, or substantial interference with neighboring properties or uses due to the activities associated with the proposed use or its hours of operation.

Furthermore, any business would be subject to the state regulations applicable to licensed non-storefront cannabis retailers. These regulations include, but are not limited to, hours of operation (6:00 A.M. to 10:00 P.M.), security requirements, and premises access restrictions.

Environmental Assessment
Staff has assessed the environmental impact of the proposed ordinance pursuant to the California Environmental Quality Act and the guidelines for the same. Staff recommends that the City Council find the ordinance exempt from the California Environmental Quality Act pursuant to Guidelines sections 15060(c)(2) and 15061(b)(3). The ordinance is not subject to the California Environmental Quality Act because he will not have a direct or Meeting Date: October 3, 2023

reasonably foreseeable indirect impact on the environment. Furthermore, the ordinance is eligible for a class 5 categorical exemption because it will result in a minor change of land use limitations which will not have a significant effect on the environment.

Public Outreach and Notification
TABLE 1 – PUBLIC NOTIFICATION TABLE
Type of Notice Required Period Actual Period Required Date Actual Date Mailed Notice of Public Hearing
(to all affected property owners) N/A N/a N/A N/A
Newspaper Notice1 20 Days 25 Days 9/13/23 9/8/23
Agenda Posting 72 Hours 4 Days 9/30/23 9/29/23
Website 72 Hours 4 Days 9/30/23 9/29/23
1The item was noticed in the September 8, 2023, edition of the Beverly Hills Courier and the September 14, 2023 editions of the Beverly Hills Weekly and Beverly Press.

No written comment was received prior to the Planning Commission Meeting nor for the City Council meeting as of September 27, 2023.

FISCAL IMPACT
The costs associated with the conditional use permit, background check, application review, and any other associated costs to oversee and administer this ordinance are currently being reviewed. Once a determination is made as to what the fees should be then staff will bring a resolution to update the City’s Comprehensive Schedule of Taxes, Fees, and Charges to the City Council for review and approval.

Ryan Gohlich, AICP
Assistant City Manager
Gabriella Yap
Senior Policy & Management
Administrator, Public Safety
Concurred By Approved By
Attachment 1
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ORDINANCE NO. 23-O-________

AN ORDINANCE OF THE CITY OF BEVERLY HILLS
AMENDING ARTICLE 47 OF CHAPTER 3 OF TITLE 10 OF

THE BEVERLY HILLS MUNICIPAL CODE ESTABLISHING

NON-STOREFRONT, DELIVERY-ONLY MEDICAL

CANNABIS RETAIL AS A CONDITIONALLY PERMITTED
USE FOR PROPERTIES LOCATED IN PORTIONS OF THE C-3
ZONE AND ADDING ARTICLE 23 TO CHAPTER 2 OF TITLE
4 OF THE BEVERLY HILLS MUNICIPAL CODE

ESTABLISHING REGULATORY AND OPERATIONAL

RESTRICTIONS FOR SUCH RETAILERS AND MAKING A

DETERMINATION OF EXEMPTION FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT

THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. On November 6, 1996, California voters approved the Compassionate Use Act of 1996, an initiative measure enacted by Proposition 215, that declares that its purpose is, among other things, to ensure seriously ill Californians have the right to obtain and use marijuana for medical purposes and exempts from state criminal liability certain patients and their primary caregivers who possess or cultivate marijuana for the personal medical purposes of the patient. On October 9, 2015, Governor Brown signed Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 into law, which collectively were known as the Medical Cannabis Regulation and Safety Act (hereinafter “MCRSA”). The MCRSA established a State regulatory and licensing scheme for commercial medical cannabis businesses. On November 8, 2016, California voters approved the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”), an initiative measure enacted by Proposition 64. The AUMA made it lawful under State and local law for persons 21 years of age or older to possess and cultivate limited quantities of cannabis for personal use. The AUMA also established a State regulatory and licensing scheme for commercial adult-use cannabis -2-
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businesses. On June 27, 2017, the Governor signed into law Senate Bill 94 which repealed the MCRSA, included certain provisions of the MCRSA in the licensing provisions of the AUMA, and created a single regulatory scheme for both medical and non-medical cannabis known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). The MAUCRSA retained the provisions in the MCRSA and the AUMA that granted local jurisdictions control over whether commercial cannabis activity could occur in a particular jurisdiction.

Section 2. Commencing with Section 10-3-4700, Article 47 of Chapter 3 of Title 10 of the City of Beverly Hills (“City”) Municipal Code (“BHMC”), the City of Beverly Hills currently prohibits all commercial cannabis activity in the City, with limited exceptions to allow cannabis activity, including allowing delivery of cannabis for medical purposes. On September 18, 2022, Governor Newsom signed into law Senate Bill 1186 (“SB 1186”), which enacted the Medicinal Cannabis Patients’ Right of Access Act. SB 1186 provides that a city cannot adopt or enforce regulations that prohibit the “retail sale by delivery” of medicinal cannabis. This includes any regulation that has the effect of prohibiting patients within the city or their caregivers from purchasing by delivery, sufficient medicinal cannabis to meet their demands in a timely and readily accessible manner. Examples of prohibited regulations include prohibiting retail sale by delivery of medicinal cannabis within the jurisdiction being conducted by a licensed non-storefront retailer.

The City desires to amend the BHMC to reflect the requirements of SB 1186 and appropriately regulate the establishment of physical premises from which retail sale by delivery of medicinal cannabis within the City is conducted by a licensed non-storefront retailer.

Section 3. On August 24, 2023, the Planning Commission held a duly noticed public hearing after which it adopted Resolution No. 2036, recommending the City Council adopt an -3-
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ordinance to amend portions of Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to establish “non-storefront, delivery-only medical cannabis retail” as a conditionally permitted use for properties in portions of the C-3 zone and to add Article 23 to Chapter 2 of Title 4 of the Beverly Hills Municipal Code to establish regulatory and operational restrictions for such retailers (collectively, the “Amendments”). On October 3, 2023, the City Council held a duly noticed public hearing, received public testimony, and thereafter introduced this Ordinance.

Section 4. This Ordinance and the Amendments were assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The Amendments would allow a non-storefront medical cannabis retail use on some lots within the City’s C-3 Zone, subject to issuance of a Conditional Use Permit with operations of the non-storefront medical cannabis retail business subject to a regulatory permit. The City Council hereby finds that the Ordinance and the Amendments are exempt from CEQA pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable indirect physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA. The businesses authorized under this zone text amendment are similar to already existing permitted commercial uses such as retail, with the only difference being the product sold (i.e., medical cannabis and medical cannabis products). The Ordinance and the Amendments do not change the zoning for any properties, meaning that they do not create negative environmental impacts or result in physical changes to the environment. Furthermore, the adoption and -4-
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implementation of the Ordinance and Amendments is eligible for a Class 5 Categorical Exemption for minor changes in land use limitations and will not have a significant environmental impact.

Thus, the Ordinance and Amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15305. City staff shall cause a Notice of Exemption to be filed as authorized by CEQA and the State CEQA Guidelines.

Section 5. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Goal Land Use (LU) 2 – Community Character and Quality calls for a built environment that is distinguished by its high level of site planning and includes the General Plan Policy LU 2.9 – Public Safety which requires developments be located and designed to promote public safety. There are limited locations in the City where a cannabisbased business would not diminish public safety, and adequate buffers from sensitive uses are provided as a result. Additionally, General Plan Policy LU 5.8 – Encroachment of Incompatible Land Uses seeks to protect residential neighborhoods from the encroachment of incompatible nonresidential uses and disruptive traffic, to the greatest extent possible. General Plan Policy LU

11.1 – Preservation of Pedestrian-Oriented Retail Shopping Area seeks to preserve, protect, and enhance the character of pedestrian-oriented retail shopping areas to ensure the continuity of the pedestrian experience in the City’s commercial areas.

Section 6. The City Council hereby adds Article 23 of Chapter 2 of Title 4 of the Beverly Hills Municipal Code to read as follows:
“ARTICLE 23: NON-STOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS RETAIL
4-2-2301 PERMIT REQUIRED:
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No person shall engage in, conduct, or carry on non-storefront, delivery-only medical cannabis retail activity without a permit issued under the provisions of chapter 1, article 1 of this title. All non-storefront, delivery-only medical cannabis retail operations must obtain and maintain a valid regulatory permit issued by the City and comply with all conditions of that permit at all times.
4-2-2302: DEFINITIONS:

For purposes of this article, the following definitions apply unless the context in which they are used clearly requires otherwise:
“Applicant” means a person or entity that submits an application for a non-storefront, delivery-only medical cannabis retail regulatory permit under this article. “Day Care Center” has the same meaning as in Section 26001 of the Business and Professions Code. “Day care center” means a child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school age child care centers, and child care centers licensed pursuant to Section 1596.951 of the Health and Safety Code.
“Fully enclosed and secure structure” means a space within a building or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, and which is accessible only through one or more lockable doors and inaccessible to minors. The fully enclosed and secure structure must have valid electrical, plumbing, and building permits, if required by other provisions of this code. -6-
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“Non-storefront, delivery-only medical cannabis retail” or “retailer” means a commercial operation that is closed to the public but delivers medical cannabis and/or medical cannabis products as part of retail sale transactions to customers at fixed locations in accordance with state law. No on-site sales, nor public access to commercial facilities or delivery vehicles, is permitted. Non-storefront, delivery-only medical cannabis retailers must be authorized to engage in the retail sale by delivery of medicinal cannabis to medicinal cannabis patients pursuant to State License: Type M-Type 9, Non-Storefront Retailer. “Owner” means any of the following: a person with an aggregate ownership interest of 20 percent or more in the non-storefront, delivery-only medical cannabis retail business, unless the interest is solely a security, lien or encumbrance; or an individual who manages, directs, or controls the operations of the non-storefront, delivery-only medical cannabis retail business, including but not limited to:
(1) A member of the board of directors of a nonprofit.
(2) A general partner of a non-storefront, delivery-only medical cannabis retail business that is organized as a partnership.
(3) A non-member manager or manager of a non-storefront, delivery-only medical cannabis retail business that is organized as a limited liability company. (4) The trustee(s) and all persons who have control of the trust and/or the nonstorefront, delivery-only medical cannabis retail business that is held in trust. (5) An individual with the authority to provide strategic direction and oversight for the overall operations of the non-storefront, delivery-only medical cannabis retail -7-
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business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager, or their equivalent. (6) An individual with the authority to execute contracts on behalf of the nonstorefront, delivery-only medical cannabis retail business. (7) When an entity is an owner in a non-storefront, delivery-only medical cannabis retail business, all entities and individuals with a financial interest in the entity shall be disclosed to the City and may be considered owners of the non-storefront, delivery-only medical cannabis retail business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or non-member managers of the entity.

Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individuals remain. “Medical cannabis” or “medical cannabis product” or “medicinal cannabis” or “medicinal cannabis product”, as defined in subdivision (ak) of Section 26001 of the Business and Professions Code, meaning cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. “Medicinal cannabis patient” means a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business -8-
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and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.
“Possession” means to have, own, control, or possess.
“Private residence” means a house, an apartment unit, a mobile home, or other similar dwelling that is lawfully permitted to be used as a residence. “State license” means any license required by the State of California for the operation of a non-storefront retailer providing delivery of medicinal cannabis (State License of the type:

M-Type 9 Non-Storefront Retailer), including but not limited to licenses issued under Division 10 of the Business & Professions Code.
“Youth center” means any of the following:
(1) Public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to: (a) Private youth membership organizations or clubs, (b) Social service teenage club facilities, (c) Video arcades where ten (10) or more video games or game machines or devices are operated, and where minors are legally permitted to enter the arcade, (d) amusement park facilities, (e) any facility used for youth activities at least sixty percent (60%) of the time in a calendar year; (f) a park, playground or recreational area located on a public or private school grounds or in City, county, or state park specifically designed to be used by children or which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility.
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4-2-2303: APPLICATION INFORMATION
In addition to the application information required in section 4-1-102, the applicant must also submit:

A. Odor Mitigation Plan. Applicants shall submit an Odor Mitigation Plan certified by a professional engineer or industrial hygienist that includes the following:

1. Operational processes and maintenance plan, including activities to ensure the odor mitigation system remains adequate and functional;

2. Odor mitigation training and operational procedures for all employees; and

3. Engineering controls, which may include carbon filtration or other methods of air cleansing, and evidence that such controls are sufficient to effectively mitigate odors from all odor sources. All odor mitigation systems and plans submitted pursuant to this subsection shall be consistent with accepted and best available industry-specific technologies designed to effectively mitigate cannabis odors.

B. Safety and Security Plan as required under section 4-2-2304(G)(15).

C. Buffer Zone. The names and addresses of all libraries, schools, religious worship institutions, youth centers and day care centers and parks within six hundred (600) feet of the proposed location.

D. State License Information. The state license or the status of the state license application.
4-2-2304: OPERATING REQUIREMENTS:
-10-
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A. Non-storefront, delivery-only medical cannabis retail operations must obtain and maintain a valid conditional use permit pursuant to the provisions in section 10-3-4705 and comply with all conditions of approval at all times.

B. Medical Cannabis, Delivery Only. Non-storefront, delivery-only medical cannabis retail operations licensed pursuant to this article may engage only in the sale and delivery of medical cannabis and medical cannabis products to customers and qualified patients and their caregivers.

C. Fees. All non-storefront, delivery-only medical cannabis retail operations must pay all applicable fees in order to commence and continue operations.

D. Visibility.

1. No cannabis or cannabis products may be visible from outside the nonstorefront medical cannabis delivery-only operation’s fixed location or delivery vehicles.

2. No visual display, signage, or condition on the exterior of the nonstorefront, delivery-only medical cannabis retail operation’s fixed locations or delivery vehicles shall indicate the types of products being stored inside the fixed location or transported in the delivery vehicles.

3. Signage shall be limited to the name of the business only and shall be in compliance with the City’s sign code (Chapter 4 of Title 10 of the Beverly Hills Municipal Code), and shall contain no advertising of other companies, brands, goods, or services.
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E. Compliance with Law. All non-storefront, delivery-only medical cannabis retail operations must be conducted in accordance with all local and state laws.

F. Hours of Operation. Non-storefront, delivery-only medical cannabis retail operations may only operate during the hours authorized by their state license and the Department of Cannabis Control regulations.

G. Safety and Security Requirements. All non-storefront, delivery-only medical cannabis retail operations must comply with the following security measures:

1. No Public Access. Non-storefront, delivery-only medical cannabis retail operations shall not permit public access to fixed locations or delivery vehicles.

Only employees, operators, and owners of non-storefront, delivery-only medical cannabis retail operations may access businesses' fixed locations or delivery vehicles.

2. No On-Site Sales. Non-storefront, delivery-only medical cannabis retail operations shall only conduct sales via delivery. On-site sales are strictly prohibited.

3. No Cannabis Paraphernalia. No non-storefront, delivery-only medical cannabis retail operation shall sell or display any products other than medicinal cannabis or medicinal cannabis products. No cannabis-related paraphernalia or any other products, including but not limited to alcohol and tobacco products shall be allowed.

4. Surveillance Systems. Security surveillance cameras and video recording systems shall be installed, and maintained in good condition, to monitor the entire -12-
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interior (except bathrooms), main entrance, and exterior areas, including parking areas, of all non-storefront, delivery-only medical cannabis retail operations’ fixed locations to discourage loitering, crime, and illegal or nuisance activities. The areas to be covered by the security cameras include, but are not limited to, the storage areas, dispensing areas, delivery areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager's designee. The cameras shall be in use 24 hours per day, seven days per week. The camera and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present in the fixed locations of non-storefront, delivery-only medical cannabis retail operations. Any disruption in security camera images should be cured expeditiously.

5. Security Video Retention. Video from the security surveillance cameras shall be maintained for a period of not less than ninety (90) days and shall be made immediately available to City representatives upon request.

6. City Surveillance System. A non-storefront, delivery-only medical cannabis retail operation permitted under this article may elect to purchase all necessary equipment to integrate their video surveillance system into any comprehensive video surveillance system currently in place or implemented by the City.

7. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition at the premises.
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8. Right of Inspection. All vehicles and facilities permitted pursuant to this article are subject to inspection by City personnel any time the operator is exercising privileges under an operator permit. Prior notice of an inspection is not required.

9. Secure Storage. All medical cannabis and medical cannabis products shall be kept in a secured manner during business and non-business hours. Each nonstorefront medical cannabis delivery-only operation shall have adequate locked storage at the fixed location for after-hours storage of cannabis and cannabis products. Medical cannabis shall be stored at the non-storefront, delivery-only medical cannabis retail operation location in secured rooms with limited or keycard access that are completely enclosed or in a safe that is bolted to the floor.

10. On-Site Security Guard. Non-storefront, delivery-only medical cannabis retail operations shall employ at least one (1) uniformed security guard to be present during normal business hours to include one-half (1/2) hour before and after normal business hours. The security guard shall be charged with preventing violations of the law, reporting suspicious persons, vehicles, circumstances and all criminal offenses to the Beverly Hills Police Department. Security guards shall be uniformed in such a manner so as to be readily identifiable as a security guard by the public and shall be duly licensed as a security guard as required by applicable provisions of the state law. The sole purpose of the security guard shall be to provide for the protection and safety of the business and its authorized personnel and said guard shall not be required to perform additional, non-security-related duties within the business. The Chief of Police, City Manager, or their respective -14-
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designee(s) reserve the right to review the number of guards and may require that the number of guards be increased as necessary.

11. Report of Criminal Activity. Non-storefront, delivery-only medical cannabis retailers shall immediately report to the Police Department: (A) any criminal conduct committed by owners, operators, agents, or employees, (B) any crimes that occur at the fixed location or in a vehicle owned or used by the business, (C) any crimes against any employee, agent, operator, or owner of the business during the performance of his/her duties, and/or (D) any crimes against any customer of the business during any transaction conducted by the business.

12. Delivery Vehicle Requirements.
a. All delivery vehicles shall be equipped with a Global Position System, hereinafter referred to as “GPS” tracking devices. Data from the GPS tracking system shall be retained for a period of thirty (30) days. GPS data shall be made available to the Police Department upon request. b. All cannabis, cannabis products, and cash must be stored during transport in secure safes or lockboxes permanently affixed to the delivery vehicle.
c. All delivery vehicles must be registered with the Police Department or other City Department as designated by the City Manager, including the make, model, license plate, vehicle identification number, and registration number of such vehicles.
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d. All cannabis delivery vehicles shall be equipped with, and utilize, a vehicle alarm system.
e. All medical cannabis delivery vehicles shall have and utilize a direct communication system with the non-storefront, delivery-only medical cannabis retailer.
f. All medical cannabis delivery vehicles shall not carry more medical cannabis than allowed by State law and required to fulfill all immediate delivery requests.

13. Owner/Employee Rosters and Notice of Change. Non-storefront medical cannabis delivery-only operations shall keep a roster on file with the Police Department with the names and birth dates of all current employees, operators, and owners of the delivery-only operation. Non-storefront medical cannabis deliveryonly operations shall provide written notice to the Chief of Police, City Manager, or their respective designee(s) of any change in ownership or employees within thirty (30) days of such change.

14. Other Necessary Security Requirements. The Chief of Police, City Manager, or their respective designee(s) may prescribe additional safety or security measures that he or she deems reasonable and necessary in light of the nature and location of a specific operation or existing operational circumstances in order to (a) prevent the diversion of legal medical cannabis to the illegal market, (b) prevent the intrusion of illegal cannabis into the non-storefront, delivery-only medical cannabis retail operation's business activities, (c) prevent robbery and theft in the -16-
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course of the non-storefront, delivery-only medical cannabis retail operations business activities, (d) prevent quality of life issues in connection with the nonstorefront, delivery-only medical cannabis retail operation, including odor, litter, loitering, and noise, and (e) ensure the safety and security of the operation, its employees, surrounding properties and the general community.

15. All non-storefront, delivery-only medical cannabis retail operations must implement and maintain a security plan approved by the Chief of Police, City Manager, or their respective designee(s). Such plan shall include, at a minimum, the above listed security measures.

H. Odor Control. All non-storefront, delivery-only medical cannabis retail operations shall incorporate and maintain adequate on-site odor control measures pursuant to an odor mitigation plan such that the odors as a result of storing or transport of cannabis and cannabis-related products cannot be readily detected from outside of the structure or vehicle in which the business operates.

I. In-Transit Requirements.

1. Only owners, operators, or employees of non-storefront, delivery-only medical cannabis retail operations may be present in vehicles during deliveries.

2. No more than the maximum amount of medical cannabis permitted under state law in total value of product and cash may be transported at any one time in an individual vehicle during deliveries.

3. Delivery vehicles may only travel between fixed locations of nonstorefront, delivery-only medical cannabis retail operations and the residential -17-
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addresses specified by customers while transporting medical cannabis and/or medical cannabis products.

4. All delivery drivers shall carry valid identification and proof of employment at a licensed non-storefront, delivery-only medical cannabis retail operation.

5. All delivery drivers shall carry a copy of the non-storefront, delivery-only medical cannabis retail regulatory permit, a copy of the delivery request, a form of government-issued identification, and all other information required by State law.

The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager's designee.

6. All drivers shall carry an inventory log of cannabis and cannabis products being transported.

7. Delivery drivers shall be trained in the process for verifying that medical cannabis and medical cannabis products are delivered to qualified patients and adult-use customers and that the delivery drivers are trained in the proper usage of medical cannabis.

J. Notification Requirements. A non-storefront, delivery-only medical cannabis retailer shall notify the Police Department within twenty-four (24) hours of discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the Chief of Police or designee.

2. The loss or unauthorized alteration of records related to medical cannabis, medical cannabis products, registered qualifying patients, primary caregivers, or a -18-
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non-storefront, delivery-only medical cannabis retail operation's agents, owners, operators, investors, partners, or employees.

3. Any other material breach of security.

K. Contact Requirement. Non-storefront, delivery-only medical cannabis retailers shall provide the City Manager or the City Manager's designee with the name, cell phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the non-storefront, delivery-only medical cannabis retailer. Each non-storefront, delivery-only medical cannabis retailer shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.

L. Owner, Operator, and Employee Requirements. In order to be eligible to obtain a regulatory permit from the City, the non-storefront, delivery-only medical cannabis retail operations must meet the following criteria:

1. All owners, operators, partners, investors, employees, and agents must be twenty-one (21) years of age or older.

2. All owners, operators, partners, investors, employees, and agents must submit to a background search.

3. No owner, operator, investor, partner, employee, or agent of a nonstorefront, delivery-only medical cannabis retail operation shall have been convicted of a felony or crime of moral turpitude nor has been found by any State or local jurisdiction to have committed a violation of the Medicinal and Adult-Use -19-
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Cannabis Regulation and Safety Act (MAUCRSA). The Chief of Police, City Manager, or their respective designee(s) reserve the right, in his or her sole discretion, to waive this requirement in relation to violations of MAUCRSA, in the event that he or she determines that the violation of MAUCRSA was minor in nature and would not undermine the safe and effective operation of the proposed business in accordance with applicable laws.

M. Legal, fully enclosed and secure structure. Non-storefront, delivery-only medical cannabis retail operations must be within legal, fully enclosed and secure structure compliant with all applicable state and local laws.

N. No additional business. Non-storefront, delivery-only medical cannabis retailers shall not grow, cultivate, manufacture, test or process cannabis. A non-storefront, deliveryonly medical cannabis retailer shall not be operated as a cannabis cultivation, manufacturing, or testing facility, unless expressly and affirmatively authorized by State and local law.

O. No loitering. Individuals shall not be allowed to remain on the premises unless they are engaging in activity expressly related to the operation of the non-storefront, deliveryonly medical cannabis retail.

P. Delivery to medicinal cannabis patients or their primary caregivers only.

1. A non-storefront, delivery-only medical cannabis retailer shall not dispense or deliver medical cannabis to any person without a physician’s recommendation.

Physician recommendations may not be made on site.
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2. Non-storefront, delivery-only medical cannabis retailers shall only deliver medical cannabis to individuals who provide government-issued identification and adequate documentation demonstrating qualification to purchase, obtain, or possess medical cannabis on their own behalf or as their primary caregiver.

3. Physician's recommendations shall be verified by a non-storefront, delivery-only medical cannabis retailer prior to dispensing or delivering any medical cannabis to a qualified patient or primary caregiver, and at least every six months thereafter.

Q. Inspected Products. Each non-storefront, delivery-only medical cannabis retailer shall deliver medical cannabis products only after those medical cannabis products have been inspected and quality tested by a qualified third-party testing facility as required by applicable State laws.

R. Labeling and Packaging. Prior to sale for a delivery, medical cannabis products shall be labeled and placed in tamper-evident package. Labels and packages of medical cannabis products shall, at minimum, meet the requirements specified under applicable State laws.

S. Tracking System. Non-storefront, delivery-only medical cannabis retail operations must be compliant in the state mandated California Cannabis Track and Trace system. 4-2-2305: RECORDKEEPING REQUIREMENTS.

A. Non-storefront, delivery-only medical cannabis retail operations shall keep the following records:

1. All delivery vehicle maintenance records.

2. All delivery vehicle ownership records.
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3. All shipping manifests for completed and in-transit deliveries.

4. A contemporaneous inventory log.

5. Delivery log including location, time and delivery driver.

6. Quality-assurance details for all cannabis and cannabis products stored and/or delivered by the non-storefront, delivery-only medical cannabis retail operations.

7. A copy of the physician's recommendation and, if using a primary caregiver, a notarized written authorization from the patient to be represented by such primary caregiver.

8. Other records as needed to account for the total quantity of medical cannabis retained, sold, and delivered on or from the premises.

B. A non-storefront, delivery-only medical cannabis retailer shall maintain patient records in a secure location within the City, available for inspection upon demand by the City Manager, the City Manager's designee, or law enforcement.

C. These records shall be maintained for three years from the date created. 4-2-2306: PROMULGATION OF REGULATIONS, STANDARDS AND OTHER LEGAL DUTIES.

In addition to any regulations adopted by the City Council, the City Manager is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of non-storefront, delivery-only medical cannabis retail permits, the ongoing operation of non-storefront, delivery-only medical cannabis retail businesses and the City's -22-
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oversight, or concerning any other subject determined to be necessary to carry out the purposes of this article. Regulations promulgated by the City Manager shall become effective upon date of publication.
4-2-2307: LIMITATION ON CITY’S LIABILITY
A. To the fullest extent permitted by law, the City does not assume any liability whatsoever, with respect to approving any permit pursuant to this article or the operation of any non-storefront, delivery-only medical cannabis retailer approved under to this article.

B. As a condition of approval of a permit as provided in this article, the applicant or its legal representative shall do the following:

1. Execute an agreement indemnifying the City from any claims, damages, injuries, or liabilities of any kind associated with the operation of the nonstorefront, delivery-only medical cannabis retail business, issuance of a permit to a non-storefront, delivery-only medical cannabis retail business, or the prosecution of the non-storefront, delivery-only medical cannabis retail business or its owners, managers, directors, officers, employees, or its qualified patients or primary caregivers for violation of federal or state laws;

2. Maintain insurance in the amounts and of the types that are acceptable to the City Manager or designee; and
3 Reimburse the City for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City may be required to pay as a result of any legal challenge related to the City's approval of a conditional -23-
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use permit or non-storefront, delivery-only medical cannabis retail regulatory permit or related to the City's approval of non-storefront, delivery-only medical cannabis retail activity. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder. 4-2-2308: IDENTIFICATION CARD REQUIRED:

The permittee and all employees shall obtain an identification card issued under the provisions of chapter 1, article 2 of this title and shall have such identification card in their possession at all times while engaged in the activity regulated by this article. 4-2-2309: ENFORCEMENT:

A violation of this article is subject to the administrative penalty provisions of title 1, chapter 3 of this Code. Where the violation is of a continuing nature, each day or portion thereof wherein the violation continues to constitute a separate and distinct violation.

A permit to operate a non-storefront, delivery-only medical cannabis retail business may be revoked or suspended pursuant to the provisions of title 4, chapter 1, article 1 of this Code.

Section 7. The City Council hereby amends Section 10-3-1604 of Article 16 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to add “Non-storefront, delivery-only medical cannabis retail” as a conditionally permitted use to read as follows, with the remainder of Section 10-3-1604 to remain unchanged:
“Non-storefront, delivery-only medical cannabis retail, subject to the provisions in section 10-3-4705.”
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Section 8. The City Council hereby adds paragraph “E” to Section 10-3-1654 of Article 16.5 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows, with the remainder of Section 10-3-1654 to remain unchanged:
“Non-storefront, delivery-only medical cannabis retail uses, as defined in Section 10-3- 4701, shall be prohibited in a pedestrian oriented area.” Section 9. The City Council hereby amends paragraph “B” of Section 10-3-3800 of Article 38 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows, with the remainder of Section 10-3-3800 to remain otherwise unchanged:
“Required Findings: The reviewing authority shall not issue a Conditional Use Permit unless the reviewing authority finds that the proposed location of any such use will not be detrimental to adjacent property or to the public welfare.

In addition, certain conditionally permitted uses have additional findings set forth in sections 10-3-1207 (Dining in Nonconforming Hotels), 10-3-1236 (Combined Uses), 10- 3-1240 (Dining in Nonconforming Hotels), 10-3-1254 (Conditional Use Permits), 10-3- 1282 (Permitted Areas), 10-3-1283 (Conditional Use Permit Requirements), 10-3- 1604 (Conditionally Permitted Uses), 10-3-1611 (Mini-Shopping Centers), 10-3- 1612 (Drive-Up, Drive-In, and Drive-Through Facilities), 10-3-1613 (Vehicle Sales, Service or Fuel Stations), 10-3-1617 (Exercise Clubs and Private Training Centers), 10- 3-1618 (Exercise Clubs and Private Training Centers), 10-3-1619 (Nightclubs), 10-3- 1620.2 (Cosmetic Spas), 10-3-1655 (Pedestrian-Oriented Areas), 10-3- 1702 (Conditionally Permitted Uses), 10-3-1802 (Conditional Uses Permitted), 10-3- 2003 (Conditionally Permitted Uses), 10-3-2730.4 (Alternative Parking Facility), 10-3- -25-
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2733 (Parking in Nonresidential Zones; Location and Shielding of Facilities), 10-3- 2862 (Conditional Use Permits Required), 10-3-2866 (Parking Requirements), 10-3- 2866.1 (Loading Restrictions), 10-3-2867 (Hotel Access Areas), 10-3-2868 (Regulations and Restrictions Applicable), 10-3-3800.1 (Convenience Store Conditional Use Permit), and 10-3-4705 (Non-storefront, delivery-only medical cannabis retail) of this chapter.” Section 10. The City Council hereby amends Section 10-3-4701 of Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to add a definitions for “Day Care Center,” “Non-storefront, delivery-only medical cannabis retail”, and “Youth Center” to read as follows, with the remainder of Section 10-3-4701 to remain unchanged:
“DAY CARE CENTER: As defined in Beverly Hills Municipal Code Section 4-2-2302.” “NON-STOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS RETAIL (OR RETAILER): As defined in Beverly Hills Municipal Code Section 4-2-2302.” “YOUTH CENTER: As defined in Beverly Hills Municipal Code Section 4-2-2302.” Section 11. The City Council hereby amends Section 10-3-4703 of Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to add paragraph “D” to read as follows, with the remainder of Section 10-3-4703 to remain unchanged:
“D. Notwithstanding section 10-3-4702 of this article, establishment of a physical premises from which retail sale by delivery of medicinal cannabis within the City is conducted by a licensed non-storefront retailer, referred to herein as non-storefront, delivery-only medical cannabis retail, may be allowed subject to the requirements of Section 10-3-4705. The delivery of medical cannabis from a business authorized under Section 10-3-4705 and Article 23 of Chapter 2 of Title 4, shall be permitted in the City.” -26-
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Section 12. The City Council hereby adds Section 10-3-4705 to Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows:
“10-3-4705: NON-STOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS RETAIL:

A. This section specifies standards for the non-storefront retail sale of medical cannabis to ensure neighborhood compatibility, minimize potential environmental impacts, and to provide safe access to cannabis for medical use. This section shall be effective only if Business and Professions Code section 26322, or a successor statute requiring the City to authorize a physical premises from which retail sale by delivery of medicinal cannabis within the City is conducted by a licensed non-storefront retailer, remains in effect.

B. Non-storefront, delivery-only medical cannabis retail is a conditionally permitted use in the C-3 zone subject to the requirements herein.

C. Location requirements.

1. Non-storefront, delivery-only medical cannabis retail is prohibited in the Pedestrian Overlay Zone (Article 16.5).

2. No non-storefront, delivery-only medical cannabis retailer shall be established on any portion of a lot located within a 600-foot radius of a sensitive use (herein defined to include the Beverly Hills Public Library, a school, a day care center, a youth center, a religious institution, or a public park) or another non-storefront, deliveryonly medical cannabis retailer. The distance specified in this subsection shall be measured by the horizontal distance measured in a straight line from the property line of where the -27-
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non-storefront, delivery-only medical cannabis retailer is to be located to the closest property line of the lot on which the sensitive use or another non-storefront, delivery-only medical cannabis retailer is located without regard to intervening structures

3. No non-storefront, delivery-only medical cannabis retail shall be permitted on the ground floor of any building.

D. Non-storefront, delivery-only medical cannabis retail use shall be permitted in the C-3 zone only if authorized by a conditional use permit issued pursuant to the provisions of article 38 of this chapter. In addition to the criteria set forth in article 38 of this chapter, the following criteria shall be considered by the planning commission when reviewing conditional use permit applications for non-storefront, delivery-only medical cannabis retail use:

1. The proposed use will have adequate buffering between the use and residential areas, and will not adversely interfere with the use and enjoyment of residential properties in the vicinity of the proposed development;

2. The proposed use will not result in detrimental impacts to existing or anticipated residential or commercial development in the vicinity of the project with regard to traffic levels, traffic safety, pedestrian-vehicle conflicts, pedestrian safety hazards,, and loading or manner of operation;

3. The proposed use will not create excessive noise, unpleasant odors, noxious fumes, excessive lighting, increased litter, or substantial interference with neighboring properties or uses due to the activities associated with the proposed use or its hours of operation; and
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4. The proposed use will not create an overconcentration of non-storefront, delivery-only medical cannabis retailers in the vicinity.

E. Operational Requirements. Non-storefront, delivery-only medical cannabis retailers shall comply with the licensing and operational requirements set forth in Article 23 of Chapter 2 of Title 4.

Section 13. No Amendments to Commercial Cannabis Prohibition. Nothing in this Ordinance shall be construed to limit or otherwise affect the ability of the City to adopt or enforce any regulations on commercial cannabis operations, other than non-storefront, delivery-only medical cannabis retailers in the City as required pursuant to Business and Professions Code Section 26322. Except as expressly amended in this Ordinance, the City’s prohibition on commercial cannabis activities and uses in Article 47 of Chapter 3 of Title 10 of the BHMC remain in full force and effect.

Section 14. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect.

Section 15. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and her certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City. -29-
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Section 16. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.

Adopted:

Effective:

JULIAN A. GOLD, M.D.

Mayor of the City of Beverly Hills,
California
ATTEST:
_______________________________(SEAL)

HUMA AHMED
City Clerk

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER
City Attorney

NANCY HUNT-COFFEY
City Manager
Attachment 2
ORDINANCE NO. 17-0- 2734

AN ORDINANCE OF THE CITY OF BEVERLY HILLS

PROHIBITING ALL COMMERCIAL CANNABIS

ACTIVITY (BOTH MEDICAL AND NON-MEDICAL)

EXCEPT FOR DELIVERIES OF MEDICAL CANNABIS,

MAKING RELATED MUNICIPAL CODE AMENDMENTS,

AND FINDING THE ORDINANCE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS DOES ORDAIN AS FOLLOWS:

SECTION 1. Findings and Purpose.

A. The City of Beverly Hills, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California.

B. On November 8, 2016, California voters approved the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”). The AUMA added Division 10 to the California Business and Professions Code, sections 26000, et seq., which grants State agencies the authority to create, issue, renew, discipline, suspend, or revoke licenses for cannabis businesses. The AUMA provides that the State shall begin issuing licenses to cannabis businesses under Division 10 of the California Business and Professions Code by January 1, 2018. California Business and Professions Code section 2605 5(e) provides that a State licensing authority shall not approve an application for a State license for commercial non-medical cannabis activity if approval of the State license will violate the provisions of any local ordinance.

C. On October 9, 2015, Governor Brown signed Assembly Bill No. 243, Assembly Bill No. 266, and Senate Bill 643 into law, which were collectively known as the Medical Cannabis Regulation and Safety Act (hereinafter “MCRSA”). The MCRSA established a State licensing scheme for commercial medical cannabis uses, while protecting local control by requiring that all such businesses have a local license or permit to operate in addition to a State license. The MCRSA allowed the City to completely prohibit commercial medical cannabis activities.

D. On June 22, 2017, the Planning Commission of the City of Beverly Hills held a public hearing on this proposed Ordinance, at which time all persons interested in the proposed Ordinance had the opportunity and did address the Planning Commission on these matters.

Following the receipt of public testimony the Planning Commission closed the public hearing.

F. At the conclusion of the Planning Commission hearing and after due consideration of the testimony, the Planning Commission adopted Resolution No. 1813 recommending that the City Council adopt the proposed Ordinance, to prohibit all commercial cannabis activity except for the delivery of medical cannabis.

F. On June 27, 2017, the Governor signed into law Senate Bill 94 which repealed the MCRSA, included certain provisions of the MCRSA in the licensing provisions of the AUMA, B0785-0001\2091 000v3.doc
and created a single regulatory scheme for both medical and non-medical cannabis known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). The MAUCRSA retains the provisions in the MCRSA and the AUMA that granted local jurisdictions control over whether commercial cannabis activity could occur in a particular jurisdiction.

Specifically, California Business and Professions Code section 26200 provides that the MAUCRSA shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances that completely prohibit the establishment or operation of one or more businesses licensed under the State, within that local jurisdiction. Furthermore, the MAUCRSA provides that a State licensing authority shall not approve an application for a State license for a business to engage in commercial cannabis activity if approval of the State license will violate the provisions of any local ordinance or regulation. The MAUCRSA requires that a State licensing authority begin issuing licenses to marijuana businesses beginning January 1, 2018.

G. On July 18, 2017, the City Council of the City of Beverly Hills held a public hearing on the proposed Ordinance, at which time all persons interested in the proposed Ordinance had the opportunity and did address the City Council on these matters. Following the receipt of public testimony the City Council closed the public hearing.

H. All legal prerequisites to the adoption of this Ordinance have occurred.

SECTION 2. The definition of “Person” contained in Section 1-2-1 (Application of Definitions) of Chapter 2 (Definitions) of Title 1 (General Provisions) is hereby amended to read as follows:
“PERSON: A natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, organization, cooperative, and collective, and any manager, lessee, agent, servant, officer or employee thereof.” SECTION 3. The definition of Marijuana Dispensary, Store, Co-Op, or Cultivation Operation from Section 10-3-100 (Words Defined) of Article 1 (Definitions) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) is hereby deleted, with all other definitions remaining in effect without amendment.

SECTION 4. The City Council of the City of Beverly Hills hereby deletes Section 10-3-2761 (Marijuana Dispensary. Store, Co-Op, or Cultivation Operation Prohibited) from Article 27 (Other Uses and Building Restrictions) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning).

SECTION 5. The City Council of the City of Beverly Hills hereby adds Article 47 (Cannabis Prohibitions and Regulations) to Chapter 3 (Zoning) of Title 10 (Planning and Zoning) to read as follows:
“ARTICLE 47 CANNABIS PROHIBITIONS AND REGULATIONS
Section 10-3-4700: Purpose.

Section 10-3-4701: Definitions.

Section 10-3-4702: Prohibited uses and activities.
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Section 10-3-4703: Exceptions.

Section 10-3-4704: Violation, penalty.
10-3-4700 Purpose.

A. The purpose of this article is to expressly prohibit the establishment of commercial cannabis uses in the city.

B. The city council finds that prohibitions on commercial cannabis activity are necessary for the preservation and protection of the public health, safety, and welfare of the city.

The prohibition of such uses is within the authority conferred upon the city council by State law and is an exercise of its police powers to enact and enforce regulations for the public health, safety and welfare of the city.
10-3-4701 Definitions.

For purposes of this chapter, the following definitions shall apply.

A. “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” includes cannabis that is used for medical, non-medical, or other purposes.
“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. “Cannabis” also does not include industrial hemp, as defined in California Health and Safety Code section 11018.5.

B. “Cannabis accessories” means any equipment, products or materials of any kind which is intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body.

C. “Cannabis product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

D. “Commercial cannabis activity” means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis product for medical, non-medical, or any other purpose and includes the activities of any business licensed by the State or other government entity under -3-
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Division 10 of the California Business and Professions Code, or any provision of State law that regulates the licensing of cannabis businesses.

E. “Concentrated cannabis” means manufactured cannabis that has undergone a process to concentrate one or more active caimabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate.

F. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

G. “Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer.

H. “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between entities licensed under Division 10 of the California Business and Professions Code, as they may be amended from time to time.

I. “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

J. “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act as codified in Division 10 of the Business and Professions Code, as the same may be amended from time to time.

K. “Private residence” means a house, an apartment unit, condominium, or other similar dwelling that is lawfully used as a residence.
10-3-4702 Prohibited uses and activities.

A. Commercial cannabis activity, whether or not for profit, is prohibited in all zones, specific plan areas, and overlay zones of the city. No person shall establish, operate, maintain, conduct, allow, or engage in commercial cannabis activity anywhere within the city. To the extent that this prohibition conflicts with any other provision of this Municipal Code, this prohibition will control.

B. A property owner shall not rent, lease or otherwise permit any person or business that engages in commercial cannabis activity to occupy real property in the city. A property owner shall not allow any person or business to establish, operate, maintain, conduct, or engage in commercial cannabis activity on any real property owned or controlled by that property owner that is located in the city.

C. Subsection A above shall prohibit all activities for which a State license is required pursuant to the MAUCRSA, as the same may be amended from time to time.

Accordingly, the city shall not issue any permit, license or other entitlement for any activity for which a State license is required under the MAUCRSA, as the same may be amended from time to time. The city shall also not issue any local license to a non-profit entity pursuant to California Business and Professions Code section 26070.5. -4-
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D. To the extent not already prohibited by subsection A above, all deliveries of cannabis or cannabis products for non-medical purposes, to or from any location are expressly prohibited. No person shall conduct or perform any delivery of any cannabis or cannabis products for a non-medical purpose, which delivery either originates or terminates within the city. This subsection shall not prohibit any person from transporting cannabis through the jurisdictional limits of the city for delivery or distribution to a person located outside the city, where such transport does not involve delivery or distribution within the jurisdictional limits of the city.
10-3-4703 Exceptions.

A. Notwithstanding Subsection 10-3-4702 above, the delivery of medical cannabis from a business located outside the city and licensed under the MAUCRSA, or any other provision of law that permits State licenses for medical cannabis businesses, shall be permitted into the city.

B. To the extent that the following activities are permitted by State law, nothing in this article shall prohibit a person 21 years of age or older from:

1. Possessing, processing, purchasing, transporting, obtaining or giving away to persons 21 years of age or older, without compensation whatsoever, not more than 28.5 grams of cannabis not in the form of concentrated cannabis;

2. Possessing, processing, purchasing, transporting, obtaining or giving away to persons 21 years of age or older, without compensation whatsoever, up to eight grams of cannabis in the form of concentrated cannabis;

3. Smoking or ingesting cannabis or cannabis products except as prohibited by California Health and Safety Code section 11362.3;

4. Possessing, transporting, purchasing, obtaining, using, manufacturing, or giving away cannabis accessories to persons 21 years of age or older without compensation whatsoever; or

5. Engaging in the cultivation of six or fewer live cannabis plants within a single private residence, inside an accessory structure located upon the grounds of a private residence, or if grown outdoors within a locked space that is not visible by normal, unaided vision from a public place.

C. This article shall also not prohibit any commercial cannabis activity that the city is required by State law to permit within its jurisdiction pursuant to the MAUCRSA. 10-3-4705 Violation, penalty.

In addition to any other enforcement permitted by this Section 10-3-205 of the Beverly Hills Municipal Code, the city attorney or city prosecutor may bring a civil action for injunctive relief and civil penalties against any person or entity that violates this chapter. In any civil action -5-
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brought pursuant to this article, a court of competent jurisdiction may award reasonable attorneys’ fees and costs to the prevailing party. Notwithstanding the penalties set forth in Section 10-3-205 of the Beverly Hills Municipal Code, no provision of Section 10-3-205 or this Article 47 authorizes a criminal prosecution, arrest or penalty inconsistent with or prohibited by Health and Safety Code section 11362.71, et seq. or section 11362.1, et seq., as the same may be amended from time to time. In the event of any conflict between the penalties enumerated under Section 10-3-205 of the Beverly Hills Municipal Code and any penalties set forth in State law, the maximum penalties allowable under State law shall govern.” SECTION 6. The Ordinance has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines, and the environmental regulations of the City. Planning Division staff has determined that the adoption and implementation of the Ordinance is eligible for a class 5 categorical exemption for minor changes in land use limitations and will not have a significant environmental impact. The Ordinance is exempt from the environmental review requirements of CEQA pursuant to Section 15305 of Title 14 of the California Code of Regulations. Planning Division Staff has also determined that the Ordinance is exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption and implementation of the Ordinance to prohibit commercial cannabis activity except for the delivery of medical cannabis will have a significant effect on the environment. The adoption and implementation of the Ordinance will not result in a permanent alteration of property nor the construction of any new or expanded structures. The City Council has reviewed Planning Division Staffs determination of exemption, and based on its own independent judgment, concurs with Staffs determination of exemption. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Los Angeles in accordance with CEQA Guidelines.

SECTION 7. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is 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 thereof be declared invalid or unconstitutional.

SECTION 8. Restatement of Existing Law. Neither the adoption of this Ordinance nor the repeal of any other Ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.

SECTION 9. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the city within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk’s certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this city.
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SECTION 10. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (3 1st) day after its passage.

Adopted: August 8, 2017
Effective: September 8, 2017 ,i..
iti BOSSE
Mayor ofthe City of Beverly Hills
ATTEST:
1 (SEAL)
City Clerk
APEDFORM: AP1
LAURENCE S. WIENER MAHDI L ZRI
City Attorney City Manager
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Attachment 3
Senate Bill No. 1186
CHAPTER 395
An act to amend Section 26200 of, and to add Chapter 26 (commencing with Section 26320) to Division 10 of, the Business and Professions Code, relating to cannabis.
[Approved by Governor September 18, 2022. Filed with
Secretary of State September 18, 2022.]
legislative counsel’s digest
SB 1186, Wiener. Medicinal Cannabis Patients’ Right of Access Act.

Existing law, the Compassionate Use Act of 1996, an initiative measure enacted by Proposition 215 at the November 6, 1996, statewide general election, declares that its purpose is, among other things, to ensure that seriously ill Californians have the right to obtain and use marijuana for medical purposes, as specified, and exempts from state criminal liability certain patients and their primary caregivers who possess or cultivate marijuana for the personal medical purposes of the patient. Existing law, known as the Medical Marijuana Program, establishes a voluntary registration program for qualified medicinal cannabis patients and their primary caregivers through a statewide identification card system maintained by the State Department of Public Health and sets forth guidelines for the possession of medicinal cannabis.

The Control, Regulate and Tax Adult-Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, established a comprehensive system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical marijuana. AUMA reserved to a local jurisdiction specified powers regarding commercial adult-use cannabis activity, including adopting and enforcing local ordinances regulating commercial adult-use cannabis activity. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, including the retail sale of medicinal cannabis.

This bill would enact the Medicinal Cannabis Patients’ Right of Access Act, which, on and after January 1, 2024, would prohibit a local jurisdiction from adopting or enforcing any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by medicinal cannabis businesses, as defined, or that has the effect of prohibiting the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers in a timely and readily

STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
accessible manner and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction, as specified. The bill, on and after January 1, 2024, would provide that the act may be enforced by an action for writ of mandate brought by a medicinal cannabis patient or their primary caregiver, a medicinal cannabis business, the Attorney General, or any other party otherwise authorized by law.

This bill would incorporate additional changes to Section 26200 of the Business and Professions Code proposed by AB 2210 to be operative only if this bill and AB 2210 are enacted and this bill is enacted last.

To the extent this bill would impose additional duties on local jurisdictions, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1. Section 26200 of the Business and Professions Code is amended to read:
26200. (a)  (1)  Except as set forth in the Medicinal Cannabis Patients’ Right of Access Act (Chapter 26 (commencing with Section 26320)), this division shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under this division, including, but not limited to, local zoning and land use requirements, business license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of businesses licensed under this division within the local jurisdiction.
(2)  Except as set forth in the Medicinal Cannabis Patients’ Right of Access Act (Chapter 26 (commencing with Section 26320)), this division shall not 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)  This division shall not be interpreted to require the department to undertake local law enforcement responsibilities, enforce local zoning requirements, or enforce local licensing, permitting, or other authorization requirements.
(c)  A local jurisdiction shall notify the department upon revocation of any local license, permit, or authorization for a licensee to engage in commercial cannabis activity within the local jurisdiction. Within 60 days of being so informed, the department shall begin the process to determine Ch. 395 — 2 —
whether a license issued to the licensee should be suspended or revoked pursuant to Chapter 3 (commencing with Section 26030).
(d)  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 division and the regulations promulgated by the department, 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 assume complete responsibility for any regulatory function pursuant to this division 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.
(e)  (1)  This division does not prohibit the issuance of a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction for the purpose of holding temporary events of this nature, provided that the activities, at a minimum, comply with all the following:
(A)  The requirements of paragraphs (1) to (3), inclusive, of subdivision (g).
(B)  All participants who are engaged in the onsite retail sale of cannabis or cannabis products at the event are licensed under this division to engage in that activity.
(C)  The activities are otherwise consistent with regulations promulgated and adopted by the department governing state temporary event licenses. (D)  A state temporary event license shall only be issued in local jurisdictions that authorize such events.
(E)  A licensee who submits an application for a state temporary event license shall, 60 days before the event, provide to the department a list of all licensees that will be providing onsite sales of cannabis or cannabis products at the event. If any changes occur in that list, the licensee shall provide the department with a final updated list to reflect those changes. A person shall not engage in the onsite retail sale of cannabis or cannabis products, or in any way participate in the event, who is not included in the list, including any updates, provided to the department. (2)  The department may impose a civil penalty on any person who violates this subdivision, or any regulations adopted by the department governing state temporary event licenses, in an amount up to three times the amount of the license fee for each violation, consistent with Sections 26018 and 26038.
(3)  The department may require the event and all participants to cease operations without delay if in the opinion of the department or local law enforcement it is necessary to protect the immediate public health and safety of the people of the state. The department may also require the event organizer to immediately expel from the event any participant selling cannabis or cannabis products without a license from the department that — 3 — Ch. 395
authorizes the participant to sell cannabis or cannabis products. If the unlicensed participant does not leave the event, the department may require the event and all participants to cease operations immediately. (4)  The order by the department for the event to cease operations pursuant to paragraph (3) does not entitle the event organizer or any participant in the event to a hearing or an appeal of the decision. Chapter 3 (commencing with Section 490) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division shall not apply to the order by the department for the event to cease operations pursuant to paragraph (3). (5)  The smoking of cannabis or cannabis products at temporary events authorized pursuant to this subdivision is prohibited in locations where smoking is prohibited. For purposes of this section, “smoking” has the same meaning as defined in subdivision (c) of Section 22950.5. (f)  This division, or any regulations promulgated thereunder, shall not 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.
(g)  Notwithstanding paragraph (1) of subdivision (a) of Section 11362.3 of the Health and Safety Code, a local jurisdiction may allow for the smoking, vaporizing, and ingesting of cannabis or cannabis products on the premises of a retailer or microbusiness licensed under this division if all of the following are met:
(1)  Access to the area where cannabis consumption is allowed is restricted to persons 21 years of age or older.
(2)  Cannabis consumption is not visible from any public place or nonage-restricted area.
(3)  Sale or consumption of alcohol or tobacco is not allowed on the premises.
(h)  This division shall not be interpreted to supersede Section 6404.5 of the Labor Code.

SEC. 1.5. Section 26200 of the Business and Professions Code is amended to read:
26200. (a)  (1)  Except as set forth in the Medicinal Cannabis Patients’ Right of Access Act (Chapter 26 (commencing with Section 26320)), this division shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under this division, including, but not limited to, local zoning and land use requirements, business license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of businesses licensed under this division within the local jurisdiction.
(2)  Except as set forth in the Medicinal Cannabis Patients’ Right of Access Act (Chapter 26 (commencing with Section 26320)), this division shall not 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.

Ch. 395 — 4 —
(b)  This division shall not be interpreted to require the department to undertake local law enforcement responsibilities, enforce local zoning requirements, or enforce local licensing, permitting, or other authorization requirements.
(c)  A local jurisdiction shall notify the department upon revocation of any local license, permit, or authorization for a licensee to engage in commercial cannabis activity within the local jurisdiction. Within 60 days of being so informed, the department shall begin the process to determine whether a license issued to the licensee should be suspended or revoked pursuant to Chapter 3 (commencing with Section 26030).
(d)  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 division and the regulations promulgated by the department, 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 assume complete responsibility for any regulatory function pursuant to this division 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.
(e)  (1)  This division does not prohibit the issuance of a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction for the purpose of holding temporary events of this nature, provided that the activities, at a minimum, comply with all the following:
(A)  The requirements of paragraphs (1) to (3), inclusive, of subdivision (g).
(B)  All participants who are engaged in the onsite retail sale of cannabis or cannabis products at the event are licensed under this division to engage in that activity.
(C)  The activities are otherwise consistent with regulations promulgated and adopted by the department governing state temporary event licenses, except as otherwise provided in paragraphs (6), (7), and (8). (D)  A state temporary event license shall only be issued in local jurisdictions that authorize such events.
(E)  A licensee who submits an application for a state temporary event license shall, 60 days before the event, provide to the department a list of all licensees that will be providing onsite sales of cannabis or cannabis products at the event. If any changes occur in that list, the licensee shall provide the department with a final updated list to reflect those changes. A person shall not engage in the onsite retail sale of cannabis or cannabis products, or in any way participate in the event, who is not included in the list, including any updates, provided to the department. (2)  The department may impose a civil penalty on any person who violates this subdivision, or any regulations adopted by the department governing — 5 — Ch. 395
state temporary event licenses, in an amount up to three times the amount of the license fee for each violation, consistent with Sections 26018 and 26038.
(3)  The department may require the event and all participants to cease operations without delay if in the opinion of the department or local law enforcement it is necessary to protect the immediate public health and safety of the people of the state. The department may also require the event organizer to immediately expel from the event any participant selling cannabis or cannabis products without a license from the department that authorizes the participant to sell cannabis or cannabis products. If the unlicensed participant does not leave the event, the department may require the event and all participants to cease operations immediately. (4)  The order by the department for the event to cease operations pursuant to paragraph (3) does not entitle the event organizer or any participant in the event to a hearing or an appeal of the decision. Chapter 3 (commencing with Section 490) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division shall not apply to the order by the department for the event to cease operations pursuant to paragraph (3). (5)  The smoking of cannabis or cannabis products at temporary events authorized pursuant to this subdivision is prohibited in locations where smoking is prohibited. For purposes of this section, “smoking” has the same meaning as defined in subdivision (c) of Section 22950.5. (6)  (A) All licensees who are issued a state temporary event license allowed pursuant to this subdivision may, upon completion or cessation of the temporary event, reconcile unsold inventory of cannabis or cannabis products and return it to the licensee’s retail premises. (B)  All unsold inventory of cannabis or cannabis products from the temporary event shall be noted in track and trace prior to transport. (C)  All unsold inventory of cannabis or cannabis products from the temporary event shall be in its original packaging in which it was placed pursuant to Chapter 12 (commencing with Section 26120). (7)  The inventory of cannabis or cannabis products authorized to be sold by a state temporary event license pursuant to this subdivision shall only be transported to and from the temporary event by a licensed distributor or licensed microbusiness.
(8)  The department shall not deny an application for a state temporary event license pursuant to this subdivision solely on the basis that there is a license issued pursuant to the Alcoholic Beverage Control Act (Division 9 (commencing with Section 23000)) for the proposed premises of the event.

Furthermore, the Department of Alcoholic Beverage Control shall not take any disciplinary action against a person licensed pursuant to the Alcoholic Beverage Control Act on the basis of a state temporary event license issued by the department to a licensee pursuant to this subdivision that utilizes the same premises as the person licensed pursuant to the Alcoholic Beverage Control Act.

Ch. 395 — 6 —
(A)  All on- and off-sale privileges of alcoholic beverages at the venue shall be suspended for the day of the event and shall not resume until 6 a.m. on the day after the event has ended.
(B)  Alcohol consumption on the venue premises shall be strictly prohibited for the day of the event and shall not resume until 6 a.m. on the day after the event has ended.
(f)  This division, or any regulations promulgated thereunder, shall not 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.
(g)  Notwithstanding paragraph (1) of subdivision (a) of Section 11362.3 of the Health and Safety Code, a local jurisdiction may allow for the smoking, vaporizing, and ingesting of cannabis or cannabis products on the premises of a retailer or microbusiness licensed under this division if all of the following are met:
(1)  Access to the area where cannabis consumption is allowed is restricted to persons 21 years of age or older.
(2)  Cannabis consumption is not visible from any public place or nonage-restricted area.
(3)  Sale or consumption of alcohol or tobacco is not allowed on the premises.
(h)  This division shall not be interpreted to supersede Section 6404.5 of the Labor Code.
(i)  This section does not alter or affect the prohibition on the sale of alcoholic beverages by a licensee, as provided in Section 26054, on or at a venue premises licensed under this division.

SEC. 2. Chapter 26 (commencing with Section 26320) is added to Division 10 of the Business and Professions Code, to read:

Chapter 26. Medicinal Cannabis Patients’ Right of Access Act 26320. The Legislature finds and declares as follows:
(a)  Access to medicinal cannabis is an integral aspect of access to health care, and eliminating barriers to medicinal cannabis access is essential to promoting and preserving the health of Californians for whom physicians have recommended the use of cannabis or cannabis products. (b)  It is the policy of the state and the intent of the Legislature to ensure that Californians throughout the state have timely and convenient access to safe, effective, and affordable medicinal cannabis.
26321. (a)  This act shall be known, and may be cited, as the Medicinal Cannabis Patients’ Right of Access Act.
(b)  For purposes of this chapter:
(1)  “Medicinal cannabis” means medicinal cannabis or medicinal cannabis products, as those terms are defined in paragraph (1) of subdivision (ai) of Section 26001.
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(2)  “Medicinal cannabis business” means a retailer authorized to engage in the retail sale by delivery of medicinal cannabis to medicinal cannabis patients pursuant to an M-license.
(3)  “Medicinal cannabis patient” means a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code. (4)  “Regulation” means a local ordinance, regulation, policy, or practice. 26322. (a)  A local jurisdiction shall not adopt or enforce any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers, or that otherwise has the effect of prohibiting the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by licensed medicinal cannabis businesses in a timely and readily accessible manner, and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction, including, but not limited to, regulation of any of the following that has the effect of prohibiting the retail sale by delivery of medicinal cannabis:
(1)  The number of medicinal cannabis businesses authorized to deliver medicinal cannabis in the local jurisdiction.
(2)  The operating hours of medicinal cannabis businesses. (3)  The number or frequency of sales by delivery of medicinal cannabis. (4)  The types or quantities of medicinal cannabis authorized to be sold by delivery.
(5)  The establishment of physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted by a licensed nonstorefront retailer, except that this paragraph shall not be construed to require the establishment of additional physical premises in a local jurisdiction that allowed medicinal cannabis retail as of January 1, 2022, and in which at least one physical premises engaged in the retail sale of medicinal cannabis, whether storefront or delivery, is already established. (b)  Nothing in this chapter shall be construed to prohibit the adoption or enforcement of reasonable regulations on retail sale by delivery of medicinal cannabis, including, but not limited to, reasonable regulations related to:
(1)  Zoning requirements that are not inconsistent with subdivision (a).

If compliance with subdivision (a) would otherwise require a local jurisdiction to authorize a physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted, this paragraph shall not be construed to alter that requirement. (2)  Security or public health and safety requirements. (3)  Licensing requirements.
(4)  The imposition, collection, and remittance of any applicable state or local taxes upon retail sales occurring within the local jurisdiction.

Ch. 395 — 8 —
(5)  Regulations consistent with requirements or restrictions imposed on cannabis businesses by this division or regulations issued under this division. (c)  Nothing in this chapter shall be construed to limit or otherwise affect the ability of a local jurisdiction to adopt or enforce any regulations on commercial cannabis operations other than retail sale by delivery of medicinal cannabis in the local jurisdiction.
(d)  This section shall become operative on January 1, 2024. 26323. (a)  This chapter may be enforced by an action brought pursuant to Chapter 2 (commencing with Section 1084) of Title 1 of Part 3 of the Code of Civil Procedure by any of the following parties, who shall be beneficially interested within the meaning of Section 1086 of the Code of Civil Procedure:
(1)  A medicinal cannabis patient or their primary caregiver who seeks to purchase medicinal cannabis or medicinal cannabis products within the local jurisdiction.
(2)  A medicinal cannabis business that seeks to offer medicinal cannabis for sale within the local jurisdiction.
(3)  The Attorney General.
(4)  Any other party otherwise authorized by law.
(b)  This section shall not be construed to limit the availability of any other remedy otherwise available to enforce this chapter. The existence of any other remedy shall not restrict the availability of relief to enforce this chapter under Chapter 2 (commencing with Section 1084) of Title 1 of Part 3 of the Code of Civil Procedure.
(c)  This section shall become operative on January 1, 2024. 26324. Nothing in this chapter shall be construed to limit or otherwise affect the ability or right of a local jurisdiction to regulate adult-use cannabis pursuant to Section 26200.
26325. This chapter addresses a matter of statewide concern and not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution.

SEC. 3. Section 1.5 of this bill incorporates amendments to Section 26200 of the Business and Professions Code proposed by both this bill and Assembly Bill 2210. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2023, (2) each bill amends Section 26200 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2210, in which case Section 1 of this bill shall not become operative.

SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

O
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Attachment 4
1 RESOLUTION NO. 2036

RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF BEVERLY HILLS RECOMMENDING THAT THE

CITY COUNCIL ADOPT AN ORDINANCE AMENDING
ARTICLE 47 OF CHAPTER 3 OF TITLE 10 OF THE BEVERLY
HILLS MUNICIPAL CODE ESTABLISHING NONSTOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS

RETAIL AS A CONDITIONALLY PERMITTED USE FOR
PROPERTIES LOCATED IN PORTIONS OF THE C-3 ZONE
AND ADDING ARTICLE 23 TO CHAPTER 2 OF TITLE 4 OF

THE BEVERLY HILLS MUNICIPAL CODE ESTABLISHING

REGULATORY AND OPERATIONAL RESTRICTIONS FOR

SUCH RETAILERS, AND MAKING A DETERMINATION OF

EXEMPTION FROM CEQA
The Planning Commission of the City of Beverly Hills hereby finds, resolves, and determines as follows:

Section 1. On September 18, 2022, Governor Newsom signed Assembly Bill No. 1186 into law, which is referred to as the Medicinal Cannabis Patients’ Right of Access Act. This law prohibits a city from adopting or enforcing any regulation that directly or indirectly prohibits the establishment of a business to provide the retail delivery of medicinal cannabis to patients or caregivers in a local jurisdiction. The law allows for the reasonable regulation on the retail sale by delivery only of medicinal cannabis via local government police powers, meaning local governments can still engage in implementing regulations for zoning, local licensing, public health and safety restrictions, and taxes. The law will become operative on January 1, 2024.

Section 2. The Planning Commission has considered the proposed draft Ordinance containing Amendments to the City of Beverly Hills Municipal Code pertaining to the regulation of non-storefront, delivery-only medical cannabis retail businesses, as set forth
DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 2 and attached hereto as Exhibit A (the “Amendments”). The Planning Commission conducted a duly noticed public hearing on August 24, 2023, at which time it received oral and documentary evidence relative to the proposed Amendments.

Section 3. The Amendments were assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The Planning Commission recommends that the City Council find and determine that the Ordinance is exempt from CEQA. The Amendments would allow a non-storefront medical cannabis retail use on some lots within the City’s C-3 Zone, subject to issuance of a Conditional Use Permit with operations of the non-storefront medical cannabis retail business subject to a regulatory permit. The Ordinance and the Amendments are exempt from CEQA pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable indirect physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA. The businesses authorized under this zone text amendment are similar to already existing permitted commercial uses such as retail, with the only difference being the product sold (i.e., medical cannabis and medical cannabis products). The Amendments do not change the zoning for any properties, meaning that they do not create negative environmental impacts or result in physical changes to the environment.

Furthermore, the adoption and implementation of the Ordinance and Amendments is eligible for a Class 5 Categorical Exemption for minor changes in land use limitations and will not have a DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 3 significant environmental impact. Thus, the Ordinance and Amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15305.

Section 4. The Planning Commission finds that the Amendments are necessary for the preservation and protection of the public interest, health, safety, morals, peace, comfort, convenience, and general welfare, and that such Amendments are consistent with the general objectives, principals, and standards of the General Plan.

Section 5. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Goal Land Use (LU) 2 – Community Character and Quality calls for a built environment that is distinguished by its high level of site planning and includes the General Plan Policy LU 2.9 – Public Safety which requires developments be located and designed to promote public safety. There are limited locations in the City where a cannabis-based business would not diminish public safety, and adequate buffers from sensitive uses are provided as a result. Additionally, General Plan Policy LU 5.8 – Encroachment of Incompatible Land Uses seeks to protect residential neighborhoods from the encroachment of incompatible nonresidential uses and disruptive traffic, to the extent possible.

General Plan Policy LU 11.1 – Preservation of Pedestrian-Oriented Retail Shopping Area seeks to preserve, protect, and enhance the character of pedestrian-oriented retail shopping areas to ensure the continuity of the pedestrian experience in the City’s commercial areas.

Section 6. The Planning Commission does hereby recommend to the City Council the adoption of an ordinance approving and enacting the proposed Amendments DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 4 substantially as set forth in Exhibit A, which is attached hereto and incorporated herein by reference.

Section 7. The Secretary of the Planning Commission shall certify to the passage, approval, and adoption of this resolution, and shall cause this resolution and his/her Certification to be entered in the Book of Resolutions of the Planning Commission of the City.

Adopted:

Gary B. Ross
Chair of the Planning Commission of the City of
Beverly Hills
Attest:

Masa Alkire, AICP
Secretary of the Planning Commission
Approved as to form: Approved as to content:

David M. Snow Masa Alkire, AICP
Assistant City Attorney City Planner
Community Development Department
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ORDINANCE NO. 23-O-________

AN ORDINANCE OF THE CITY OF BEVERLY HILLS
AMENDING ARTICLE 47 OF CHAPTER 3 OF TITLE 10 OF

THE BEVERLY HILLS MUNICIPAL CODE ESTABLISHING

NON-STOREFRONT, DELIVERY-ONLY MEDICAL

CANNABIS RETAIL AS A CONDITIONALLY PERMITTED
USE FOR PROPERTIES LOCATED IN PORTIONS OF THE C-3
ZONE AND ADDING ARTICLE 23 TO CHAPTER 2 OF TITLE
4 OF THE BEVERLY HILLS MUNICIPAL CODE

ESTABLISHING REGULATORY AND OPERATIONAL

RESTRICTIONS FOR SUCH RETAILERS AND MAKING A

DETERMINATION OF EXEMPTION FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT

THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. On November 6, 1996, California voters approved the Compassionate Use Act of 1996, an initiative measure enacted by Proposition 215, that declares that its purpose is, among other things, to ensure seriously ill Californians have the right to obtain and use marijuana for medical purposes and exempts from state criminal liability certain patients and their primary caregivers who possess or cultivate marijuana for the personal medical purposes of the patient. On October 9, 2015, Governor Brown signed Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 into law, which collectively were known as the Medical Cannabis Regulation and Safety Act (hereinafter “MCRSA”). The MCRSA established a State regulatory and licensing scheme for commercial medical cannabis businesses. On November 8, 2016, California voters approved the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”), an initiative measure enacted by Proposition 64. The AUMA made it lawful under State and local law for persons 21 years of age or older to possess and cultivate limited quantities of cannabis for personal use. The AUMA also established a State regulatory and licensing scheme for commercial adult-use cannabis DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 businesses. On June 27, 2017, the Governor signed into law Senate Bill 94 which repealed the MCRSA, included certain provisions of the MCRSA in the licensing provisions of the AUMA, and created a single regulatory scheme for both medical and non-medical cannabis known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). The MAUCRSA retained the provisions in the MCRSA and the AUMA that granted local jurisdictions control over whether commercial cannabis activity could occur in a particular jurisdiction.

Section 2. Commencing with Section 10-3-4700, Article 47 of Chapter 3 of Title 10 of the City of Beverly Hills (“City”) Municipal Code (“BHMC”) currently prohibits all commercial cannabis activity in the City, with limited exceptions to allow cannabis activity, including allowing delivery of cannabis for medical purposes. On September 18, 2022, Governor Newsom signed into law Senate Bill 1186 (“SB 1186”), which enacted the Medicinal Cannabis Patients’ Right of Access Act. SB 1186 provides that a city cannot adopt or enforce regulations that prohibit the “retail sale by delivery” of medicinal cannabis. This includes any regulation that hasthe effect of prohibiting patients within the city or their caregiversfrom purchasing by delivery, sufficient medicinal cannabis to meet their demands in a timely and readily accessible manner.

Examples of prohibited regulations include prohibiting retail sale by delivery of medicinal cannabis within the jurisdiction being conducted by a licensed non-storefront retailer. The City desires to amend the BHMC to reflect the requirements of SB 1186 and appropriately regulate the establishment of physical premises from which retail sale by delivery of medicinal cannabis within the City is conducted by a licensed non-storefront retailer.

Section 3. On August 24, 2023, the Planning Commission held a duly noticed public hearing after which it adopted Resolution No. 2036, recommending the City Council adopt an -2-
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ordinance to amend portions of Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to establish “non-storefront, delivery-only medical cannabis retail” as a conditionally permitted use for properties in portions of the C-3 zone and to add Article 23 to Chapter 2 of Title 4 of the Beverly Hills Municipal Code to establish regulatory and operational restrictions for such retailers (collectively, the “Amendments”). On ____, 2023, the City Council held a duly noticed public hearing, received public testimony, and thereafter introduced this Ordinance.

Section 4. This Ordinance and the Amendments were assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The Amendments would allow a non-storefront medical cannabis retail use on some lots within the City’s C-3 Zone, subject to issuance of a Conditional Use Permit with operations of the non-storefront medical cannabis retail business subject to a regulatory permit. The City Council hereby finds that the Ordinance and the Amendments are exempt from CEQA pursuant to State CEQA Guidelines sections 15060(c)(2) and 15061(b)(3). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable indirect physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA. The businesses authorized under this zone text amendment are similar to already existing permitted commercial uses such as retail, with the only difference being the product sold (i.e., medical cannabis and medical cannabis products). The Ordinance and the Amendments do not change the zoning for any properties, meaning that they do not create negative environmental impacts or result in physical changes to the environment. Furthermore, the adoption and DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -4-
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implementation of the Ordinance and Amendments is eligible for a Class 5 Categorical Exemption for minor changes in land use limitations and will not have a significant environmental impact.

Thus, the Ordinance and Amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15305. City staff shall cause a Notice of Exemption to be filed as authorized by CEQA and the State CEQA Guidelines.

Section 5. The Amendments are consistent with the objectives, principles, and standards of the General Plan. General Plan Goal Land Use (LU) 2 – Community Character and Quality calls for a built environment that is distinguished by its high level of site planning and includes the General Plan Policy LU 2.9 – Public Safety which requires developments be located and designed to promote public safety. There are limited locations in the City where a cannabisbased business would not diminish public safety, and adequate buffers from sensitive uses are provided as a result. Additionally, General Plan Policy LU 5.8 – Encroachment of Incompatible Land Uses seeks to protect residential neighborhoods from the encroachment of incompatible nonresidential uses and disruptive traffic, to the greatest extent possible. General Plan Policy LU

11.1 – Preservation of Pedestrian-Oriented Retail Shopping Area seeks to preserve, protect, and enhance the character of pedestrian-oriented retail shopping areas to ensure the continuity of the pedestrian experience in the City’s commercial areas.

Section 6. The City Council hereby adds Article 23 of Chapter 2 of Title 4 of the Beverly Hills Municipal Code to read as follows:
“ARTICLE 23: NON-STOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS RETAIL
4-2-2301 PERMIT REQUIRED:

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No person shall engage in, conduct, or carry on non-storefront, delivery-only medical cannabis retail activity without a permit issued under the provisions of chapter 1, article 1 of this title. All non-storefront, delivery-only medical cannabis retail operations must obtain and maintain a valid regulatory permit issued by the City and comply with all conditions of that permit at all times.
4-2-2302: DEFINITIONS:

For purposes of this article, the following definitions apply unless the context in which they are used clearly requires otherwise:
“Applicant” means a person or entity that submits an application for a non-storefront, delivery-only medical cannabis retail regulatory permit under this article. “Day Care Center” has the same meaning as in Section 26001 of the Business and Professions Code. “Day care center” means a child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school age child care centers, and child care centers licensed pursuant to Section 1596.951 of the Health and Safety Code.
“Fully enclosed and secure structure” means a space within a building or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, and which is accessible only through one or more lockable doors and inaccessible to minors. The fully enclosed and secure structure must have valid electrical, plumbing, and building permits, if required by other provisions of this code.

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“Non-storefront, delivery-only medical cannabis retail” or “retailer” means a commercial operation that is closed to the public but delivers medical cannabis and/or medical cannabis products as part of retail sale transactions to customers at fixed locations in accordance with state law. No on-site sales, nor public access to commercial facilities or delivery vehicles, is permitted. Non-storefront, delivery-only medical cannabis retailers must be authorized to engage in the retail sale by delivery of medicinal cannabis to medicinal cannabis patients pursuant to State License: Type M-Type 9, Non-Storefront Retailer. “Owner” means any of the following: a person with an aggregate ownership interest of 20 percent or more in the non-storefront, delivery-only medical cannabis retail business, unless the interest is solely a security, lien or encumbrance; or an individual who manages, directs, or controls the operations of the non-storefront, delivery-only medical cannabis retail business, including but not limited to:
(1) A member of the board of directors of a nonprofit.
(2) A general partner of a non-storefront, delivery-only medical cannabis retail business that is organized as a partnership.
(3) A non-member manager or manager of a non-storefront, delivery-only medical cannabis retail business that is organized as a limited liability company. (4) The trustee(s) and all persons who have control of the trust and/or the nonstorefront, delivery-only medical cannabis retail business that is held in trust. (5) An individual with the authority to provide strategic direction and oversight for the overall operations of the non-storefront, delivery-only medical cannabis retail DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -7-
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business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager, or their equivalent. (6) An individual with the authority to execute contracts on behalf of the nonstorefront, delivery-only medical cannabis retail business. (7) When an entity is an owner in a non-storefront, delivery-only medical cannabis retail business, all entities and individuals with a financial interest in the entity shall be disclosed to the City and may be considered owners of the non-storefront, delivery-only medical cannabis retail business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or non-member managers of the entity.

Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individuals remain. “Medical cannabis” or “medical cannabis product” or “medicinal cannabis” or “medicinal cannabis product”, as defined in subdivision (ak) of Section 26001 of the Business and Professions Code, meaning cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. “Medicinal cannabis patient” means a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -8-
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and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.
“Possession” means to have, own, control, or possess.
“Private residence” means a house, an apartment unit, a mobile home, or other similar dwelling that is lawfully permitted to be used as a residence. “State license” means any license required by the State of California for the operation of a non-storefront retailer providing delivery of medicinal cannabis (State License of the type:

M-Type 9 Non-Storefront Retailer), including but not limited to licenses issued under Division 10 of the Business & Professions Code.
“Youth center” means any of the following:
(1) Public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to: (a) Private youth membership organizations or clubs, (b) Social service teenage club facilities, (c) Video arcades where ten (10) or more video games or game machines or devices are operated, and where minors are legally permitted to enter the arcade, (d) amusement park facilities, (e) any facility used for youth activities at least sixty percent (60%) of the time in a calendar year; (f) a park, playground or recreational area located on a public or private school grounds or in City, county, or state park specifically designed to be used by children or which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility.

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4-2-2303: APPLICATION INFORMATION
In addition to the application information required in section 4-1-102, the applicant must also submit:

A. Odor Mitigation Plan. Applicants shall submit an Odor Mitigation Plan certified by a professional engineer or industrial hygienist that includes the following:

1. Operational processes and maintenance plan, including activities to ensure the odor mitigation system remains adequate and functional;

2. Odor mitigation training and operational procedures for all employees; and

3. Engineering controls, which may include carbon filtration or other methods of air cleansing, and evidence that such controls are sufficient to effectively mitigate odors from all odor sources. All odor mitigation systems and plans submitted pursuant to this subsection shall be consistent with accepted and best available industry-specific technologies designed to effectively mitigate cannabis odors.

B. Safety and Security Plan as required under section 4-2-2304(G)(15).

C. Buffer Zone. The names and addresses of all libraries, schools, religious worship institutions, youth centers and day care centers and parks within six hundred (600) feet of the proposed location.

D. State License Information. The state license or the status of the state license application.
4-2-2304: OPERATING REQUIREMENTS:

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A. Non-storefront, delivery-only medical cannabis retail operations must obtain and maintain a valid conditional use permit pursuant to the provisions in section 10-3-4705 and comply with all conditions of approval at all times.

B. Medical Cannabis, Delivery Only. Non-storefront, delivery-only medical cannabis retail operations licensed pursuant to this article may engage only in the sale and delivery of medical cannabis and medical cannabis products to customers and qualified patients and their caregivers.

C. Fees. All non-storefront, delivery-only medical cannabis retail operations must pay all applicable fees in order to commence and continue operations.

D. Visibility.

1. No cannabis or cannabis products may be visible from outside the nonstorefront medical cannabis delivery-only operation’s fixed location or delivery vehicles.

2. No visual display, signage, or condition on the exterior of the nonstorefront, delivery-only medical cannabis retail operation’s fixed locations or delivery vehicles shall indicate the types of products being stored inside the fixed location or transported in the delivery vehicles.

3. Signage shall be limited to the name of the business only and shall be in compliance with the City’s sign code (Chapter 4 of Title 10 of the Beverly Hills Municipal Code), and shall contain no advertising of other companies, brands, goods, or services.

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E. Compliance with Law. All non-storefront, delivery-only medical cannabis retail operations must be conducted in accordance with all local and state laws.

F. Hours of Operation. Non-storefront, delivery-only medical cannabis retail operations may only operate during the hours authorized by their state license and the Department of Cannabis Control regulations.

G. Safety and Security Requirements. All non-storefront, delivery-only medical cannabis retail operations must comply with the following security measures:

1. No Public Access. Non-storefront, delivery-only medical cannabis retail operations shall not permit public access to fixed locations or delivery vehicles.

Only employees, operators, and owners of non-storefront, delivery-only medical cannabis retail operations may access businesses' fixed locations or delivery vehicles.

2. No On-Site Sales. Non-storefront, delivery-only medical cannabis retail operations shall only conduct sales via delivery. On-site sales are strictly prohibited.

3. No Cannabis Paraphernalia. No non-storefront, delivery-only medical cannabis retail operation shall sell or display any products other than medicinal cannabis or medicinal cannabis products. No cannabis-related paraphernalia or any other products, including but not limited to alcohol and tobacco products shall be allowed.

4. Surveillance Systems. Security surveillance cameras and video recording systems shall be installed, and maintained in good condition, to monitor the entire DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -12-
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interior (except bathrooms), main entrance, and exterior areas, including parking areas, of all non-storefront, delivery-only medical cannabis retail operations’ fixed locations to discourage loitering, crime, and illegal or nuisance activities. The areas to be covered by the security cameras include, but are not limited to, the storage areas, dispensing areas, delivery areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager's designee. The cameras shall be in use 24 hours per day, seven days per week. The camera and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present in the fixed locations of non-storefront, delivery-only medical cannabis retail operations. Any disruption in security camera images should be cured expeditiously.

5. Security Video Retention. Video from the security surveillance cameras shall be maintained for a period of not less than thirty (30) days and shall be made immediately available to City representatives upon request.

6. City Surveillance System. A non-storefront, delivery-only medical cannabis retail operation permitted under this article may elect to purchase all necessary equipment to integrate their video surveillance system into any comprehensive video surveillance system currently in place or implemented by the City.

7. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition at the premises.

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8. Right of Inspection. All vehicles and facilities permitted pursuant to this article are subject to inspection by City personnel any time the operator is exercising privileges under an operator permit. Prior notice of an inspection is not required.

9. Secure Storage. All medical cannabis and medical cannabis products shall be kept in a secured manner during business and non-business hours. Each nonstorefront medical cannabis delivery-only operation shall have adequate locked storage at the fixed location for after-hours storage of cannabis and cannabis products. Medical cannabis shall be stored at the non-storefront, delivery-only medical cannabis retail operation location in secured rooms with limited or keycard access that are completely enclosed or in a safe that is bolted to the floor.

10. On-Site Security Guard. Non-storefront, delivery-only medical cannabis retail operations shall employ at least one (1) uniformed security guard to be present during normal business hours to include one-half (1/2) hour before and after normal business hours. The security guard shall be charged with preventing violations of the law, reporting suspicious persons, vehicles, circumstances and all criminal offenses to the Beverly Hills Police Department. Security guards shall be uniformed in such a manner so as to be readily identifiable as a security guard by the public and shall be duly licensed as a security guard as required by applicable provisions of the state law. The sole purpose of the security guard shall be to provide for the protection and safety of the business and its authorized personnel and said guard shall not be required to perform additional, non-security-related duties within the business. The Chief of Police reserves the right to review the DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -14-
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number of guards and may require that the number of guards be increased as necessary.

11. Report of Criminal Activity. Non-storefront, delivery-only medical cannabis retailers shall immediately report to the Police Department: (A) any criminal conduct committed by owners, operators, agents, or employees, (B) any crimes that occur at the fixed location or in a vehicle owned or used by the business, (C) any crimes against any employee, agent, operator, or owner of the business during the performance of his/her duties, and/or (D) any crimes against any customer of the business during any transaction conducted by the business.

12. Delivery Vehicle Requirements.
a. All delivery vehicles shall be equipped with a Global Position System, hereinafter referred to as “GPS” tracking devices. Data from the GPS tracking system shall be retained for a period of thirty (30) days. GPS data shall be made available to the Police Department upon request. b. All cannabis, cannabis products, and cash must be stored during transport in secure safes or lockboxes permanently affixed to the delivery vehicle.
c. All delivery vehicles must be registered with the Police Department, including the make, model, license plate, vehicle identification number, and registration number of such vehicles.
d. All cannabis delivery vehicles shall be equipped with, and utilize, a vehicle alarm system.

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e. All medical cannabis delivery vehicles shall have and utilize a direct communication system with the non-storefront, delivery-only medical cannabis retailer.
f. All medical cannabis delivery vehicles shall not carry more medical cannabis than allowed by State law and required to fulfill all immediate delivery requests.

13. Owner/Employee Rosters and Notice of Change. Non-storefront medical cannabis delivery-only operations shall keep a roster on file with the Police Department with the names and birth dates of all current employees, operators, and owners of the delivery-only operation. Non-storefront medical cannabis deliveryonly operations shall provide written notice to the Police Department of any change in ownership or employees within thirty (30) days of such change.

14. Other Necessary Security Requirements. The Chief of Police may prescribe additional safety or security measures that he or she deems reasonable and necessary in light of the nature and location of a specific operation or existing operational circumstances in order to (a) prevent the diversion of legal medical cannabis to the illegal market, (b) prevent the intrusion of illegal cannabis into the non-storefront, delivery-only medical cannabis retail operation's business activities, (c) prevent robbery and theft in the course of the non-storefront, delivery-only medical cannabis retail operations business activities, (d) prevent quality of life issues in connection with the non-storefront, delivery-only medical cannabis retail operation, including odor, litter, loitering, and noise, and (e) ensure the safety and DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -16-
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security of the operation, its employees, surrounding properties and the general community.

15. All non-storefront, delivery-only medical cannabis retail operations must implement and maintain a security plan approved by the Police Department. Such plan shall include, at a minimum, the above listed security measures.

H. Odor Control. All non-storefront, delivery-only medical cannabis retail operations shall incorporate and maintain adequate on-site odor control measures pursuant to an odor mitigation plan such that the odors as a result of storing or transport of cannabis and cannabis-related products cannot be readily detected from outside of the structure or vehicle in which the business operates.

I. In-Transit Requirements.

1. Only owners, operators, or employees of non-storefront, delivery-only medical cannabis retail operations may be present in vehicles during deliveries.

2. No more than the maximum amount of medical cannabis permitted under state law in total value of product and cash may be transported at any one time in an individual vehicle during deliveries.

3. Delivery vehicles may only travel between fixed locations of nonstorefront, delivery-only medical cannabis retail operations and the residential addresses specified by customers while transporting medical cannabis and/or medical cannabis products.

4. All delivery drivers shall carry valid identification and proof of employment at a licensed non-storefront, delivery-only medical cannabis retail operation.

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5. All delivery drivers shall carry a copy of the non-storefront, delivery-only medical cannabis retail regulatory permit, a copy of the delivery request, a form of government-issued identification, and all other information required by State law.

The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager's designee.

6. All drivers shall carry an inventory log of cannabis and cannabis products being transported.

7. Delivery drivers shall be trained in the process for verifying that medical cannabis and medical cannabis products are delivered to qualified patients and adult-use customers and that the delivery drivers are trained in the proper usage of medical cannabis.

J. Notification Requirements. A non-storefront, delivery-only medical cannabis retailer shall notify the Police Department within twenty-four (24) hours of discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the Chief of Police or designee.

2. The loss or unauthorized alteration of records related to medical cannabis, medical cannabis products, registered qualifying patients, primary caregivers, or a non-storefront, delivery-only medical cannabis retail operation's agents, owners, operators, investors, partners, or employees.

3. Any other material breach of security.

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K. Contact Requirement. Non-storefront, delivery-only medical cannabis retailers shall provide the City Manager or the City Manager's designee with the name, cell phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the non-storefront, delivery-only medical cannabisretailer. Each non-storefront, delivery-only medical cannabis retailer shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.

L. Owner, Operator, and Employee Requirements. In order to be eligible to obtain a regulatory permit from the City, the non-storefront, delivery-only medical cannabis retail operations must meet the following criteria:

1. All owners, operators, partners, investors, employees, and agents must be twenty-one (21) years of age or older.

2. All owners, operators, partners, investors, employees, and agents must submit to a background search.

3. No owner, operator, investor, partner, employee, or agent of a nonstorefront, delivery-only medical cannabis retail operation shall have been convicted of a felony or crime of moral turpitude nor has been found by any State or local jurisdiction to have committed a violation of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). The Chief of Police reserves the right, in his or her sole discretion, to waive this requirement in relation to violations of MAUCRSA, in the event that he or she determines that the violation DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -19-
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of MAUCRSA was minor in nature and would not undermine the safe and effective operation of the proposed business in accordance with applicable laws.

M. Legal, fully enclosed and secure structure. Non-storefront, delivery-only medical cannabis retail operations must be within legal, fully enclosed and secure structure compliant with all applicable state and local laws.

N. No additional business. Non-storefront, delivery-only medical cannabis retailers shall not grow, cultivate, manufacture, test or process cannabis. A non-storefront, deliveryonly medical cannabis retailer shall not be operated as a cannabis cultivation, manufacturing, or testing facility, unless expressly and affirmatively authorized by State and local law.

O. No loitering. Individuals shall not be allowed to remain on the premises unless they are engaging in activity expressly related to the operation of the non-storefront, deliveryonly medical cannabis retail.

P. Delivery to medicinal cannabis patients or their primary caregivers only.

1. A non-storefront, delivery-only medical cannabis retailer shall not dispense or deliver medical cannabis to any person without a physician’s recommendation.

Physician recommendations may not be made on site.

2. Non-storefront, delivery-only medical cannabis retailers shall only deliver medical cannabis to individuals who provide government-issued identification and adequate documentation demonstrating qualification to purchase, obtain, or possess medical cannabis on their own behalf or as their primary caregiver.

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3. Physician's recommendations shall be verified by a non-storefront, delivery-only medical cannabis retailer prior to dispensing or delivering any medical cannabis to a qualified patient or primary caregiver, and at least every six months thereafter.

Q. Inspected Products. Each non-storefront, delivery-only medical cannabis retailer shall deliver medical cannabis products only after those medical cannabis products have been inspected and quality tested by a qualified third-party testing facility as required by applicable State laws.

R. Labeling and Packaging. Prior to sale for a delivery, medical cannabis products shall be labeled and placed in tamper-evident package. Labels and packages of medical cannabis products shall, at minimum, meet the requirements specified under applicable State laws.

S. Tracking System. Non-storefront, delivery-only medical cannabis retail operations must be compliant in the state mandated California Cannabis Track and Trace system. 4-2-2305: RECORDKEEPING REQUIREMENTS.

A. Non-storefront, delivery-only medical cannabis retail operations shall keep the following records:

1. All delivery vehicle maintenance records.

2. All delivery vehicle ownership records.

3. All shipping manifests for completed and in-transit deliveries.

4. A contemporaneous inventory log.

5. Delivery log including location, time and delivery driver.

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6. Quality-assurance details for all cannabis and cannabis products stored and/or delivered by the non-storefront, delivery-only medical cannabis retail operations.

7. A copy of the physician's recommendation and, if using a primary caregiver, a notarized written authorization from the patient to be represented by such primary caregiver.

8. Other records as needed to account for the total quantity of medical cannabis retained, sold, and delivered on or from the premises.

B. A non-storefront, delivery-only medical cannabis retailer shall maintain patient records in a secure location within the City, available for inspection upon demand by the City Manager, the City Manager's designee, or law enforcement.

C. These records shall be maintained for three years from the date created. 4-2-2306: PROMULGATION OF REGULATIONS, STANDARDS AND OTHER LEGAL DUTIES.

In addition to any regulations adopted by the City Council, the City Manager is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of non-storefront, delivery-only medical cannabis retail permits, the ongoing operation of non-storefront, delivery-only medical cannabis retail businesses and the City's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this article. Regulations promulgated by the City Manager shall become effective upon date of publication.
4-2-2307: LIMITATION ON CITY’S LIABILITY
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A. To the fullest extent permitted by law, the City does not assume any liability whatsoever, with respect to approving any permit pursuant to this article or the operation of any non-storefront, delivery-only medical cannabis retailer approved under to this article.

B. As a condition of approval of a permit as provided in this article, the applicant or its legal representative shall do the following:

1. Execute an agreement indemnifying the City from any claims, damages, injuries, or liabilities of any kind associated with the operation of the nonstorefront, delivery-only medical cannabis retail business, issuance of a permit to a non-storefront, delivery-only medical cannabis retail business, or the prosecution of the non-storefront, delivery-only medical cannabis retail business or its owners, managers, directors, officers, employees, or its qualified patients or primary caregivers for violation of federal or state laws;

2. Maintain insurance in the amounts and of the types that are acceptable to the City Manager or designee; and
3 Reimburse the City for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City may be required to pay as a result of any legal challenge related to the City's approval of a conditional use permit or non-storefront, delivery-only medical cannabis retail regulatory permit or related to the City's approval of non-storefront, delivery-only medical cannabis retail activity. The City, at its sole discretion, may participate at its own DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -23-
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expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder. 4-2-2308: IDENTIFICATION CARD REQUIRED:

The permittee and all employees shall obtain an identification card issued under the provisions of chapter 1, article 2 of this title and shall have such identification card in their possession at all times while engaged in the activity regulated by this article. 4-2-2309: ENFORCEMENT:

A violation of this article is subject to the administrative penalty provisions of title 1, chapter 3 of this Code. Where the violation is of a continuing nature, each day or portion thereof wherein the violation continues to constitute a separate and distinct violation.

A permit to operate a non-storefront, delivery-only medical cannabis retail business may be revoked or suspended pursuant to the provisions of title 4, chapter 1, article 1 of this Code.

Section 7. The City Council hereby amends Section 10-3-1604 of Article 16 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to add “Non-storefront, delivery-only medical cannabis retail” as a conditionally permitted use to read as follows, with the remainder of Section 10-3-1604 to remain unchanged:
“Non-storefront, delivery-only medical cannabis retail, subject to the provisions in section 10-3-4705.”
Section 8. The City Council hereby adds paragraph “E” to Section 10-3-1654 of Article 16.5 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows, with the remainder of Section 10-3-1654 to remain unchanged:

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“Non-storefront, delivery-only medical cannabis retail uses, as defined in Section 10-3- 4701, shall be prohibited in a pedestrian oriented area.” Section 9. The City Council hereby amends paragraph “B” of Section 10-3-3800 of Article 38 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows, with the remainder of Section 10-3-3800 to remain otherwise unchanged:
“Required Findings: The reviewing authority shall not issue a Conditional Use Permit unless the reviewing authority finds that the proposed location of any such use will not be detrimental to adjacent property or to the public welfare.

In addition, certain conditionally permitted uses have additional findings set forth in sections 10-3-1207 (Dining in Nonconforming Hotels), 10-3-1236 (Combined Uses), 10- 3-1240 (Dining in Nonconforming Hotels), 10-3-1254 (Conditional Use Permits), 10-3- 1282 (Permitted Areas), 10-3-1283 (Conditional Use Permit Requirements), 10-3- 1604 (Conditionally Permitted Uses), 10-3-1611 (Mini-Shopping Centers), 10-3- 1612 (Drive-Up, Drive-In, and Drive-Through Facilities), 10-3-1613 (Vehicle Sales, Service or Fuel Stations), 10-3-1617 (Exercise Clubs and Private Training Centers), 10- 3-1618 (Exercise Clubs and Private Training Centers), 10-3-1619 (Nightclubs), 10-3- 1620.2 (Cosmetic Spas), 10-3-1655 (Pedestrian-Oriented Areas), 10-3- 1702 (Conditionally Permitted Uses), 10-3-1802 (Conditional Uses Permitted), 10-3- 2003 (Conditionally Permitted Uses), 10-3-2730.4 (Alternative Parking Facility), 10-3- 2733 (Parking in Nonresidential Zones; Location and Shielding of Facilities), 10-3- 2862 (Conditional Use Permits Required), 10-3-2866 (Parking Requirements), 10-3- 2866.1 (Loading Restrictions), 10-3-2867 (Hotel Access Areas), 10-3-2868 (Regulations DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -25-
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and Restrictions Applicable), 10-3-3800.1 (Convenience Store Conditional Use Permit), and 10-3-4705 (Non-storefront, delivery-only medical cannabis retail) of this chapter.” Section 10. The City Council hereby amends Section 10-3-4701 of Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to add a definitions for “Day Care Center,” “Non-storefront, delivery-only medical cannabis retail”, and “Youth Center” to read as follows, with the remainder of Section 10-3-4701 to remain unchanged:
“DAY CARE CENTER: As defined in Beverly Hills Municipal Code Section 4-2-2302.” “NON-STOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS RETAIL (OR RETAILER): As defined in Beverly Hills Municipal Code Section 4-2-2302.” “YOUTH CENTER: As defined in Beverly Hills Municipal Code Section 4-2-2302.” Section 11. The City Council hereby amends Section 10-3-4703 of Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to add paragraph “D” to read as follows, with the remainder of Section 10-3-4703 to remain unchanged:
“D. Notwithstanding section 10-3-4702 of this article, establishment of a physical premises from which retail sale by delivery of medicinal cannabis within the City is conducted by a licensed non-storefront retailer, referred to herein as non-storefront, delivery-only medical cannabis retail, may be allowed subject to the requirements of Section 10-3-4705. The delivery of medical cannabis from a business authorized under Section 10-3-4705 and Article 23 of Chapter 2 of Title 4, shall be permitted in the City.” Section 12. The City Council hereby adds Section 10-3-4705 to Article 47 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code to read as follows:

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“10-3-4705: NON-STOREFRONT, DELIVERY-ONLY MEDICAL CANNABIS RETAIL:

A. This section specifies standards for the non-storefront retail sale of medical cannabis to ensure neighborhood compatibility, minimize potential environmental impacts, and to provide safe access to cannabis for medical use. This section shall be effective only if Business and Professions Code section 26322, or a successor statute requiring the City to authorize a physical premises from which retail sale by delivery of medicinal cannabis within the City is conducted by a licensed non-storefront retailer, remains in effect.

B. Non-storefront, delivery-only medical cannabis retail is a conditionally permitted use in the C-3 zone subject to the requirements herein.

C. Location requirements.

1. Non-storefront, delivery-only medical cannabis retail is prohibited in the Pedestrian Overlay Zone (Article 16.5).

2. No non-storefront, delivery-only medical cannabis retailer shall be established on any portion of a lot located within a 600-foot radius of a sensitive use (herein defined to include the Beverly Hills Public Library, a school, a day care center, a youth center, a religious institution, or a public park) or another non-storefront, deliveryonly medical cannabis retailer. The distance specified in this subsection shall be measured by the horizontal distance measured in a straight line from the property line of where the non-storefront, delivery-only medical cannabis retailer is to be located to the closest DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 -27-
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property line of the lot on which the sensitive use or another non-storefront, delivery-only medical cannabis retailer is located without regard to intervening structures

3. No non-storefront, delivery-only medical cannabis retail shall be permitted on the ground floor of any building.

D. Non-storefront, delivery-only medical cannabis retail use shall be permitted in the C-3 zone only if authorized by a conditional use permit issued pursuant to the provisions of article 38 of this chapter. In addition to the criteria set forth in article 38 of this chapter, the following criteria shall be considered by the planning commission when reviewing conditional use permit applications for non-storefront, delivery-only medical cannabis retail use:

1. The proposed use will have adequate buffering between the use and residential areas, and will not adversely interfere with the use and enjoyment of residential properties in the vicinity of the proposed development;

2. The proposed use will not result in detrimental impacts to existing or anticipated residential or commercial development in the vicinity of the project with regard to traffic levels, traffic safety, pedestrian-vehicle conflicts, pedestrian safety hazards,, and loading or manner of operation;

3. The proposed use will not create excessive noise, unpleasant odors, noxious fumes, excessive lighting, increased litter, or substantial interference with neighboring properties or uses due to the activities associated with the proposed use or its hours of operation; and
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4. The proposed use will not create an overconcentration of non-storefront, delivery-only medical cannabis retailers in the vicinity.

E. Operational Requirements. Non-storefront, delivery-only medical cannabis retailers shall comply with the licensing and operational requirements set forth in Article 23 of Chapter 2 of Title 4.

Section 13. No Amendments to Commercial Cannabis Prohibition. Nothing in this Ordinance shall be construed to limit or otherwise affect the ability of the City to adopt or enforce any regulations on commercial cannabis operations, other than non-storefront, delivery-only medical cannabis retailers in the City as required pursuant to Business and Professions Code Section 26322. Except as expressly amended in this Ordinance, the City’s prohibition on commercial cannabis activities and uses in Article 47 of Chapter 3 of Title 10 of the BHMC remain in full force and effect.

Section 14. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect.

Section 15. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and her certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.

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Section 16. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage. ///
///
///
///Adopted:

Effective:

JULIAN A. GOLD, M.D.

Mayor of the City of Beverly Hills,
California
ATTEST:
_______________________________(SEAL)

HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER
City Attorney

NANCY HUNT-COFFEY
City Manager
DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.

CITY OF BEVERLY HILLS )
I, KAREN MYRON, Recording Secretary of the Planning Commission of the City of Beverly Hills, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 2036 duly passed, approved and adopted by the Planning Commission of said City at a meeting of said Commission on August 24, 2023, and thereafter duly signed by the Secretary of the Planning Commission, as indicated; and that the Planning Commission of the City consists of five (5) members and said Resolution was passed by the following vote of said Commission, to wit:

AYES: Commissioners Wolfe, Demeter, Ostroff, Vice Chair Kaplan, Chair Ross NOES: None
ABSTAIN: None
ABSENT: None
________________________________

KAREN MYRON
Recording Secretary of the
Planning Commission
City of Beverly Hills, California
DocuSign Envelope ID: DC0C0A06-DEA9-4A79-BF95-E6F360EB1155 Certificate Of Completion
Envelope Id: DC0C0A06DEA94A79BF95E6F360EB1155 Status: Completed Subject: Please DocuSign: PC Reso 2036 - Non-Storefront Medical Cannabis.pdf Source Envelope:

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