Capitola City Council
September 3, 2026

REVISED 9/3/2026 AT 3:00 PM
City of Capitola
Special City Council Meeting Agenda
Thursday, September 03, 2026 – 4:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Margaux Morgan
Vice Mayor: Gerry Jensen
Council Members: Joe Clarke, Melinda Orbach, Susan Westman Special Meeting of the Capitola City Council – 4 PM

1. Roll Call
Council Members Joe Clarke, Melinda Orbach, Susan Westman, Vice Mayor Gerry Jensen, and Mayor Margaux Morgan

2. Additional Materials
Additional information related to an agenda item on this agenda and submitted to the City after distribution of the agenda packet pursuant to Government Code §54957.5. All correspondence received prior to 5:00 p.m. on the Wednesday preceding a Council Meeting will be distributed to Councilmembers to review prior to the meeting. Information submitted after 5 p.m. on that Wednesday may not have time to reach Councilmembers, nor be read by them prior to consideration of an item.

A. Item 3A - Correspondence Received
B. Item 4 - Correspondence Received

3. General Government
All items listed in “General Government” are intended to provide an opportunity for public discussion of each item listed. The following procedure pertains to each General Government item: 1) Staff explanation; 2) Council questions; 3) Public comment; 4) Council deliberation; 5) Decision.

A. Chapter 8.40: Capitola Municipal Code
Recommended Action: 1) Adopt an urgency ordinance amending Chapter 8.40 of the Capitola Municipal Code to remove the expiration language in Section 8.40.150(G), so the City’s safe drug and sharps disposal requirements remain in effect; and 2) introduce for first reading, waiving further reading, an ordinance amending Chapter 8.40 of the Capitola Municipal Code to remove the expiration language in Section 8.40.150(G).

4. Oral Communications by Members of the Public
Oral Communications allows time for members of the Public to address the City Council on any topic within the jurisdiction of the City that is not on the “General Government” section of the Agenda.

Members of the public may speak for up to three minutes, unless otherwise specified by the Mayor.

Individuals may not speak more than once during Oral Communications. All speakers must address the entire legislative body and will not be permitted to engage in dialogue. A maximum of 30 minutes is set aside for Oral Communications.

5. Adjournment
1 Special City Council Meeting Agenda – September 03, 2026 City of Capitola Page 2
The next regularly scheduled City Council meeting is on September 10, 2026, at 6:00 PM. _____________________________________________________
How to View the Meeting
Meetings are open to the public for in-person attendance at the Capitola City Council Chambers located at 420 Capitola Avenue, Capitola, California, 95010.

Other ways to Watch:

Spectrum Cable Television channel 8
City of Capitola, California YouTube Channel
How to Provide Comments to the City Council
Members of the public may provide public comments to the City Council in-person during the meeting.

If you are unable to attend in-person, please email your comments to [email protected] and they will be included as a part of the record for the meeting.

Notice regarding City Council: The City Council meets on the 2nd and 4th Thursday of each month at 6:00 p.m. in the City Hall Council Chambers located at 420 Capitola Avenue, Capitola.

Agenda and Agenda Packet Materials: The City Council Agenda and the complete Agenda Packet are available for review on the City’s website and at Capitola City Hall prior to the meeting. Need more information? Contact the City Clerk’s office at 831-475-7300.

Agenda Materials Distributed after Distribution of the Agenda Packet: Pursuant to Government Code §54957.5, materials related to an agenda item submitted after distribution of the agenda packet are available for public inspection at the Reception Office at City Hall, 420 Capitola Avenue, Capitola, California, during normal business hours.

Americans with Disabilities Act: Disability-related aids or services are available to enable persons with a disability to participate in this meeting consistent with the Federal Americans with Disabilities Act of 1990. Assisted listening devices are available for individuals with hearing impairments at the meeting in the City Council Chambers. Should you require special accommodations to participate in the meeting due to a disability, please contact the City Clerk’s office at least 24 hours in advance of the meeting at 831-475-7300. In an effort to accommodate individuals with environmental sensitivities, attendees are requested to refrain from wearing perfumes and other scented products.

Si desea asistir a esta reunión pública y necesita ayuda - como un intérprete de lenguaje de señas americano, español u otro equipo especial - favor de llamar al Departamento de la Secretaría de la Ciudad al 831-475-7300 al menos tres días antes para que podamos coordinar dicha asistencia especial o envié un correo electrónico a [email protected].

Televised Meetings: City Council meetings are cablecast “Live” on Charter Communications Cable TV Channel 8 and are recorded to be rebroadcasted at 8:00 a.m. on the Wednesday following the meetings and at 1:00 p.m. on Saturday following the first rebroadcast on Community Television of Santa Cruz County (Charter Channel 71 and Comcast Channel 25). Meetings are streamed “Live” on the City’s website by clicking on the Home Page link “Meeting Agendas/Videos.” Archived meetings can be viewed from the website at any time. 2 1
Gautho, Julia
From: Ryan Murray <[email protected]>
Sent: Wednesday, September 2, 2026 7:00 PM
To: Goldstein, Jamie
Cc: Woodmansee, Chloe; City Council; [email protected]; MED-Project (City of Capitola) Subject: PLEASE CONFIRM RECEIPT: MED-Project LLC Letter to City of Capitola re Ordinance Sunset
Attachments: 2026-09-02 - MED-Project LLC Letter to City of Capitola re Ordinance Sunset.pdf

PLEASE CONFIRM RECEIPT
Dear Jaime Goldstein,
Please review the attached letter from MED-Project regarding the Safe Drug and Sharps Disposal Ordinance Sunset.

Please contact me with any questions regarding the letter.

Ryan
Ryan Murray
Lead Director, Legal & Compliance
(t) 202/892-6502 (m) 765/481-6312 (f) 866/633-1812
(e) [email protected] | www.med-project.org
This e-mail transmission and any attachments that accompany it may contain information that is privileged, confidential or otherwise exempt from disclosure under applicable law and is intended solely for the use of the individual(s) to whom it was intended to be addressed. If you have received this e-mail by mistake, or you are not the intended recipient, any disclosure, dissemination, distribution, copying or other use or retention of this communication or its substance is prohibited. If you have received this communication in error, please immediately reply to the author via e-mail that you received this message by mistake and also permanently delete the original and all copies of this e-mail and any attachments from your computer. 3 Item 2 A.

MED-Project LLC
4096 Piedmont Avenue | Unit 174 | Oakland, CA 94611
Phone: (833) 633-7765 | Fax: (866) 633-1812
[email protected]
September 2, 2026
Jamie Goldstein
City Manager
City of Capitola
420 Capitola Avenue
Capitola, CA 95010
[email protected]
Re: Safe Drug and Sharps Disposal Ordinance Sunset
City of Capitola:

The City of Capitola Safe Drug and Sharps Disposal Ordinance No. 1006, codified as Chapter 8.40 of the City of Capitola Municipal Code (“Ordinance”) sunsets “ten years following enactment” on September 8, 2026. See Ordinance § 8.40.150(G).

California’s statewide pharmaceutical and home-generated sharps and waste program under Senate Bill 212 (2018) (“State Program”) preempts the amended versions of the Ordinance. MED-Project LLC (“MED-Project”) is contacting the City of Capitola (“City”) to inform it that the State Program will expressly preempt its efforts to adopt an urgency ordinance and regular ordinance amending Chapter 8.40 of the Capitola Municipal Code and to reassure the City of uninterrupted access to convenient drug and sharps collection and disposal services.

California’s State Program preempts any local stewardship program “with an effective date on or after April 18, 2018.” Cal. Pub. Res. Code § 42036.2(b)(emphasis added). The City’s efforts to enact an urgency ordinance, and address the sunset date, will result in an immediate effective date of September 3, 2026. Cal. Gov. Code § 36937(b). This enactment will result in express preemption, triggering the requirements of the State Program. A regular ordinance would be likewise preempted.

The Ordinance’s sunset would trigger the same requirements. The State Program requires that it be expanded into the City upon the Ordinance’s September 8, 2026 sunset. See Cal. Pub. Res. Code §§ 42036.2(a) and 42032.2(e).

The City’s explanation for use of the urgency ordinance measure is the “lapse of Chapter 8.40 could reduce safe disposal options for medications and sharps in the community.” (emphasis added). Not so. MED-Project USA, the separate entity that operates drug and sharps collection and disposal programs, is required by the State Program to transition its collection and disposal services into the City upon the State Program’s preemption of the Ordinance.
4 Item 2 A.

MED-Project LLC
4096 Piedmont Avenue | Unit 174 | Oakland, CA 94611
Phone: (833) 633-7765 | Fax: (866) 633-1812
[email protected]
This transition will also alleviate Ordinance implementation issues. This includes, for example, a late plan approval from the City and inequitable treatment of the program operators.

Adopting an “urgency ordinance” to address the expiring local stewardship program is unsupportable, particularly given MED-Project USA’s success in the State Program. The City’s inevitable transition to the State Program does not require “immediate preservation of the public peace, health or safety,” which is necessary for the City to use an urgency ordinance measure. Cal. Gov’t Code § 36937(b); see also 216 Sutter Bay Assocs. v. County of Sutter, 58 Cal. App. 4th 860, 868 (1997).

As explained above, California SB 212 provides for the expansion of the State Program into the City when the Ordinance expires, so residents will continue to have access to convenient mandated drug and sharps collection services. The suggestion that implementation of the State Program—which operates almost everywhere else in California—would necessitate City action to address emergency circumstances is nonsensical. The sunset is a core feature of the temporary Ordinance. The City has known this date would come for a decade and fails to demonstrate any need for an “urgency ordinance,” and attempting to pass a regular ordinance by urgency ordinance “bypass[es] more formal notice and hearing requirements.” Sutter, 58 Cal. App. 4th at 873.

As discussed above, the State Program’s express preemption will be triggered if the City passes an urgency ordinance or regular ordinance amending Chapter 8.40 of the Capitola Municipal Code instead of allowing the Ordinance to sunset on September 8, 2026. MED-Project reserves all its rights regarding the City’s actions and the Ordinance.

Sincerely Yours,
Ryan Murray
Lead Director, Legal & Compliance
MED-Project USA
cc:

Chloe Woodmansee
Assistant to the City Manager
City of Capitola
420 Capitola Avenue
Capitola, CA 95010
[email protected]
5 Item 2 A.

MED-Project LLC
4096 Piedmont Avenue | Unit 174 | Oakland, CA 94611
Phone: (833) 633-7765 | Fax: (866) 633-1812
[email protected]
Capitola City Council
Capitola City Hall
420 Capitola Avenue
Capitola, CA 95010
[email protected]
(via email and certified mail #9589 0710 5270 2548 8140 54) Marc Tran
City Attorney, City of Capitola
Burke, Williams & Sorensen, LLP
420 Capitola Avenue
Capitola, CA 95010
[email protected]
(via email and certified mail #9589 0710 5270 2548 8140 61) 6 Item 2 A.
1 Gautho, Julia
From: Irina Butler - ppswg.org <[email protected]>
Sent: Thursday, September 3, 2026 3:40 PM
To: City Council
Subject: Capitola Safe Drug and Sharps Disposal Ordinance Attachments: PPSWG Capitola Letter.pdf
Good afternoon,
Please see the attached for your review and consideration.

Appreciate your time,
Irina

Irina Butler
Executive Director
Pharmaceutical Product Stewardship Work Group
1800 M Street, NW, Suite 400 South | Washington, DC 20036 (e) [email protected]
CONFIDENTIALITY NOTICE: The contents of this email message and any attachments are intended solely for the addressee(s) and may contain confidential and/or privileged information and may be legally protected from disclosure. If you are not the intended recipient of this message or their agent, or if this message has been addressed to you in error, please immediately alert the sender by reply email and then delete this message and any attachments. If you are not the intended recipient, you are hereby notified that any use, dissemination, copying, or storage of this message or its attachments is strictly prohibited.
7 Item 2 A.

Pharmaceutical Product Stewardship Work Group
1800 M Street, NW | Suite 400 South | Washington, DC 20036 Phone: (202) 495-3131 | Fax: (202) 530-0659
[email protected]
1 VIA ELECTRONIC MAIL
September 3, 2026
Capitola City Council
Capitola City Hall
420 Capitola Ave.

Capitola, CA 95010
Email: [email protected]
Capitola City Councilors:

PPSWG is a membership association that brings together producers of branded and generic prescription and non-prescription pharmaceuticals and sharps to address take-back laws for homegenerated drugs and sharps, currently comprising 443 members. MED-Project LLC (“MEDProject”) serves as the stewardship organization designated by PPSWG members to implement and operate a stewardship program under the Capitola Safe Drug and Sharps Disposal Ordinance of 2016 (the “Ordinance”), as well as state-wide Covered Drugs and Home-Generated Sharps Programs in California under Senate Bill (SB) 212 (2018).

We are writing to express concerns regarding the Council’s proposed adoption, at a Special Meeting of the Council scheduled for 4 PM on September 3, 2026, of an urgency ordinance (effective date September 3, 2026) and introduction of a regular ordinance (effective date 30 days after adoption) with the intent of amending Chapter 8.40 of the Capitola Municipal Code to remove the existing expiration language in Section 8.40.150(G) of the Ordinance. Background for this proposal was provided in the two-page Agenda Report of the Capitola Public Works Department (the “Report”), which was posted with copies of the proposed ordinances on the evening of September 2, 2026.

While the sunsetting of Capitola’s drug and sharps stewardship requirements would result in the transition of collection services under the state-wide program, the Report only notes that this transition “could reduce safe disposal options” as the City of Capitola has “[n]o transition plan … presently in place.” In order to preserve the “grandfathered status” of the Ordinance based on its pre-2018 effective date, the Report therefore recommends adopting those additional ordinances to provide for its extended operation.

The Report does not accurately reflect the reality of this program’s transition. As MED-Project’s September 2, 2026 letter to Jamie Goldstein, City Manager describes, “California SB 212 provides for the expansion of the State Program into the City when the Ordinance expires, so residents will continue to have access to convenient mandated drug and sharps collection services.” Further, provision of services under the state-wide program would reduce the administrative burden on producers, on the plan operator, and ultimately on the City of Capitola in attempting to continue operation of its existing mandate. Accordingly, we encourage the Council not to adopt the urgency ordinance or the regular ordinance and to instead allow the Ordinance to sunset under its provisions. 8 Item 2 A.

Pharmaceutical Product Stewardship Work Group
1800 M Street, NW | Suite 400 South | Washington, DC 20036 Phone: (202) 495-3131 | Fax: (202) 530-0659
[email protected]
2 We appreciate your consideration on this issue.

Thank you,
Irina Butler,
Executive Director
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Capitola City Council
Agenda Report
Meeting: September 10, 2026
From: Public Works Department
Subject: Chapter 8.40: Capitola Municipal Code
Recommended Action: 1) Adopt an urgency ordinance amending Chapter 8.40 of the Capitola Municipal Code to remove the expiration language in Section 8.40.150(G), so the City’s safe drug and sharps disposal requirements remain in effect; and 2) introduce for first reading, waiving further reading, an ordinance amending Chapter 8.40 of the Capitola Municipal Code to remove the expiration language in Section 8.40.150(G).

Background: Beginning in 2008, Santa Cruz County and the cities of Capitola, Santa Cruz, Scotts Valley, and Watsonville worked together to provide a regional system for collecting unwanted medications and household sharps. The original program was voluntary and locally funded. By October 2015, it included approximately 46 collection locations at pharmacies, police and sheriff’s facilities, and local household hazardous-waste facilities throughout the County.

In 2015, Santa Cruz County initiated a transition to a producer-funded stewardship model under which manufacturers would be responsible for the cost of collecting, transporting, and disposing of unwanted medications and sharps. On December 8, 2015, the Santa Cruz County Board of Supervisors adopted Ordinance No. 5214, establishing the Santa Cruz County Safe Drug and Sharps Disposal Ordinance.

The Board of Supervisors also encouraged each incorporated city within the County to adopt a similar ordinance so that the producer-funded program could operate throughout the region.

The City of Santa Cruz adopted its ordinance in August 2016, followed by Capitola in September 2016, Scotts Valley in December 2016, and Watsonville in 2017. Although the ordinances established legally separate local programs, they were developed as part of the coordinated regional effort and contain substantially similar requirements.

On September 8, 2016, Council adopted Ordinance No. 1006 (Attachment 1) adding Chapter 8.40, “Capitola Safe Drug and Sharps Disposal Ordinance.” The ordinance language adopted by all jurisdictions included a provision that states the ordinance shall be in effect for a period of ten years following enactment.

The adopted code is intended to protect public health, safety, welfare, and the environment by providing for the safe and orderly collection and disposal of drug and sharps waste. The ordinance remains the basis for the City’s approved stewardship program.

MED-Project USA is a non-profit organization that develops, implements, and operates safe, free, and compliant product stewardship programs for the disposal of household medicine and sharps, to help drug and sharps manufacturers comply with state and local legislation regarding product disposal. Since 2017, MED-Project has provided the City and our neighboring jurisdictions with product stewardship plans and receptacles for safe disposal. The Capitola program currently provides medication and sharps disposal services through four participating pharmacies, mail-back options, and a medication collection receptacle at City Hall.

Discussion: At the end of August 2026, City staff was contacted by Santa Cruz County staff reporting the county-wide safe drug and sharps disposal ordinances expired this late summer and fall, and that neighboring cities and the County had experienced seizure of MED-Project collection facilities due to the expiration. Staff from the County encouraged the City to take action to maintain the City’s program and keep drop off facilities available to all residents.

Staff recommends the Council adopt an urgency ordinance that takes effect immediately and removes only the sunset clause. An urgency ordinance is appropriate because lapse of Chapter 8.40 could reduce 138
Item 3 A.
safe disposal options for medications and sharps in the community. Reduced access to safe disposal may increase the risk of needlestick injuries, improper disposal, and accidental ingestion. Staff has prepared urgency findings describing the immediate public health and safety basis for immediate effectiveness. The urgency ordinance (Attachment 2) would take effect immediately upon Council adoption and would remain in effect until the effective date of the regular ordinance (Attachment 3).

Adoption of an urgency ordinance requires a 4/5 vote of the City Council, or unanimous vote if only four Council Members are present for a meeting.

Staff reviewed the ordinance and governing statutes and found no apparent state preemption issue with keeping Chapter 8.40 in place, provided the ordinance remains in continuous effect.

State law regulating drug and sharps take-back programs, Senate Bill 212 (SB 212), generally requires manufacturers to fund medication and sharps disposal programs approved and overseen by CalRecycle.

However, under Public Resources Code Section 42036.2, the statewide program does not apply to a city whose local ordinance was already in effect before April 18, 2018. Capitola’s ordinance took effect in 2016. Based on that timing, the City’s program may continue as a pre-2018 local program. Staff understands that grandfathered status would be lost if the ordinance were repealed or allowed to lapse.

If the local ordinance is repealed or allowed to lapse and the statewide program becomes applicable, the statewide stewardship program must expand into the jurisdiction within 270 days. State law does not clearly require the statewide program to replace all local services immediately upon expiration of the local ordinance. No transition plan is presently in place to ensure uninterrupted service in Capitola during that period.

The statewide program also does not necessarily provide the same level or type of service as Capitola’s local program. Medication collection location requirements are measured countywide rather than by individual city. For household sharps collection, the statewide program is primarily a mail-back program and does not require a physical sharps collection kiosk within Capitola. Consequently, continuation of the City Hall receptacle and existing pharmacy-based collection services would not be assured if Chapter

8.40 lapses.

Removing only the 10-year sunset provision in Section 8.40.150(G) would not repeal Chapter 8.40.

Instead, deleting that sentence would keep the same 2016 ordinance continuously in force. Under that approach, the City’s program would remain a pre-2018 local program rather than a new ordinance subject to state preemption.

If Council wishes to preserve the existing local framework, staff recommends adoption of the urgency ordinance as described above, as well as introduction of a regular ordinance.

Fiscal Impact: There is no direct fiscal impact associated with removing the expiration language. Chapter

8.40 requires producers, groups of producers, or stewardship organizations to pay administrative and operational costs associated with the product stewardship program, including City administration and enforcement costs as provided in the chapter.

Attachments:

1. Ordinance No. 1006

2. Proposed Ordinance (Urgency)

3. Proposed Ordinance (Regular)
Alignment with 2025-2029 Strategic Plan Priority: Accountable Government; Community Safety; Healthy Families, Community, and Environment
Report Prepared By: Jessica Kahn, Public Works Director Reviewed By: Julia Gautho, City Clerk; Marc Tran, City Attorney Approved By: Jamie Goldstein, City Manager
139
Item 3 A.
l
]
J
3040
ORDINANCE NO.1 006

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAPITOLA ADDING CHAPTER 8.40 TO TITLE 8 OF THE CAPITOLA MUNICIPAL CODE

REQUIRING THE SAFE DISPOSAL OF DRUGS AND SHARPS
The City Council of the City of Capitola hereby finds and declares the following:

WHEREAS, drugs and sharps are necessary medical technologies which allow us to live longer, healthier and more productive lives and reduce suffering at the end of life; and
WHEREAS, the public, particularly children, the elderly and public employees, are at significant and unnecessary risk of poisoning and injury due to improper or careless disposal of drugs and sharps; and .

WHEREAS, our groundwater and drinking water are being contaminated by unwanted, leftover or expired drugs passing through our wastewater treatment centers; and
WHEREAS, there is no mandatory statewide stewardship program for unwanted drugs or sharps in California, and manufacturers, retailers and producers have not offered any support for a permanent collection program to date; and WHEREAS, although state law (California Health and Safety Code Section 118286) requires that home-generated sharps be transported to a collection center in sharps containers or other containers authorized by the local enforcement agency, and prohibits the loose disposal of home-generated sharps waste in trash or recycling containers, many people continue to dispose of contaminated sharps in a manner that increases the risk that others will come into contact with them; and WHEREAS, the lack of sufficient safe, convenient disposal locations for leftover, expired, and/or unwanted drugs creates significant risks to human health and to the environment. As a result, leftover, expired, and/or unwanted drugs are often left in homes where they can be accidentally ingested or abused by children, adults, and the elderly, increasing the risk of poisoning, addiction, and death; and WHEREAS, unwanted drugs are also often flushed down toilets or sinks.

However, municipal wastewater treatment plants are not designed to remove the complex compounds in the drugs that end up in the sewer system. As a result, drugs can pass through wastewater treatment systems and contaminate receiving waters; and WHEREAS, an Environmental Protection Agency report on drinking water released in December 2013 tested effluent samples from 50 large wastewater treatment plants nationwide for active pharmaceutical ingredients and metabolites. Out of the 63 total compounds tested for, 43 were detected in at least one of the samples and all samples were found to contain at least one pharmaceutical compound. The presence of pharmaceuticals in surface water is well documented to have ecological impacts, including negative effects on fish and other aquatic life; and
140
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3041 ORDINANCE NO. 1006
WHEREAS, establishing a safe: convenient collection and disposal system for leftover, expired, and unwanted drugs will reduce unintentional poisonings and drug overdose deaths by making drugs less accessible to persons who might accidentally ingest or abuse them; and
WHEREAS, establishing a safe, convenient collection and disposal system for leftover, expired, and unwanted drugs will also reduce the quantity of pharmaceutical compounds that are discharged into the Monterey Bay National Marine Sanctuary and other environmentally sensitive waters throughout the City; and WHEREAS, Extended Producer Responsibility (EPR) laws, sometimes referred to as .Product Stewardship laws, place responsibility for end-of-life management of consumer products on the manufacturers and producers of the products, while encouraging product design that minimizes negative impacts on human health and the environment at every stage of the product's lifecycle; and
WHEREAS, many local and national governmental bodies support EPR, including CalRecycle (formerly the California Integrated Waste Management Board), the National Association of Counties, and the National League of Cities; and WHEREAS, California has passed four significant products stewardship laws for mercury thermostats (AB 2347, enacted as Chapter 572 of the statutes of 2008), carpet (AB 2398, enacted as Chapter 681 of the statutes of 2010), paint (AB 1343, enacted as Chapter 420 of the statutes of 2010) and mattresses (SB 254, enacted as Chapter 388 of the statues of 2013). All four laws require producers to establish and fund product [ stewardship programs for their waste streams; and . __
WHEREAS, in 2010, Congress passed the "Secure and Responsible Drug Disposal Act of 2010," Public Law No. 111-273, which authorized the Attorney General to expand the methods through which pharmaceuticals classified as controlled substances may be collected, including through collection at pharmacies. The goal of the bill was to increase opportunities for drug collection in order to reduce substance abuse, accidental poisoning, and the release of harmful substances into the environment. On October 9, 2014, the Drug Enforcement Agency promulgated regulations implementing that Act.

These regulations, among other things, authorize retail pharmacies to maintain secure collection bins for controlled substances; and
WHEREAS, Mexico, a number. of Canadian provinces, much of Europe and several other countries already have active, well-established EPR drug disposal programs in place. Many of the same drug companies that participate in these . programs manufacture drugs sold in the United States; and
WHEREAS, in 2012, Alameda County became the first local government in the United States to pass legislation requiring pharmaceutical companies to design, fund, and operate a program to safely collect and dispose of unwanted drugs, similar to the takeback programs in Canada's pharmacies. On September 30,2014, the Ninth Circuit Court of Appeal rejected a legal challenge to Alameda County's Ordinance brought by pharmaceutical trade associations. Pharm. Research & Ivlfrs. Of Am. v. Cty. of Alameda, 13-16833,768 F.3d1037 (9th Cir. 2014). The U.S. Supreme Court subsequently declined L' to hear an appeal of this ruling; and
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Item 3 A.

I
I
J
ORDINANCE NO.1 006 3042
WHEREAS, King County, Washington as well as the City and County of San Francisco and the Counties of Santa Cruz, San Mateo, Santa Clara, San Luis Obispo and Marin have enacted similar ordinances requiring drug manufacturers to design, fund, and operate programs to safely collect and dispose of local residents' unwanted drugs and/or sharps; and
WHEREAS, beginning in 2008, the County of Santa Cruz has operated a voluntary County-funded collection program, pursuant to which the County of Santa Cruz and the City have been working together with the cities of Watsonvi!le, Santa Cruz and Scotts Valley to provide a convenient and permanent system to collect unwanted pharmaceuticals. As of October 2015, this program consists of 46 locations at pharmacies, police departments, and sheriff's stations, which collect both controlled and non-controlled substances, as well as city and county household hazardous waste disposal sites. Participation in collection and disposal of unwanted drugs is still voluntary, resulting in a patchwork of businesses partiCipating in one or both programs, leading to confusion among consumers and sometimes improper disposal in the wrong containers; and
WHEREAS, on December 8,2015, the Santa Cruz County Board of Supervisors passed an Ordinance (Ordinance No. 5214, effective the 31st day after the date of final passage) requiring the safe disposal of drugs and sharps and establishing a Product Stewardship Program to safely collect and dispose of unused/unwanted pharmaceutical and sharps waste from county residents. This City Ordinance is intended to compliment and be consistent with Santa Cruz County's Safe Disposal of Drugs and Sharps Ordinance (Santa Cruz County Code Chapter 7.95); and
WHEREAS, a manufacturer and/or producer-funded collection and disposal program in the City for unwanted drugs and sharps· would significantly increase convenient disposal options for City residents' unwanted drugs and sharps, enabling collection of larger quantities of unwanted drugs and sharps and reducing risks to public safety, health, and the environment.

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CAPITOLA AS FOLLOWS:

SECTION I
The Capitola Municipal Code is hereby amended by adding Chapter 8.40 to read as follows:
. Sections:

Chapter 8.40 CAPITOLA SAFE DRUG AND SHARPS DISPOSAL

8.40.010

8.40.020

8.40.030

8.40.040

8.40.050

8.40.060

8.40.070

8.40.080
Purpose and Intent
Title
Definitions
Product Stewardship Program
Product Stewardship Plan
Disposal of Unwanted Products
Product Stewardship Program Promotion and Outreach
Retailer and Provider Participation
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8.40.090

8.40.100
Lists of Producers and Manufacturers of Covered Drugs and Sharps Reporting.

8.40.110 Program Assessment and Collection of Data

8.40.120 List of Producers

8.40.130 Regulations and Fees

8.40.140 Enforcement

8.40.150 Additional Provisions

8.40.010 Purpose and Intent
The purpose of this chapter is to protect the health, safety and welfare of the public and of the environment by providing for the safe and orderly collection and disposal of drug and sharps waste and by placing responsibility for end-of-life management of drug and sharps products on the manufacturers and/or producers of the products, while encouraging product design that minimizes negative impacts on human health and the environment at every stage of the product's life cycle. This chapter is intended to be consistent with the Santa Cruz County Safe Drug and Sharps Disposal Ordinance.

8.40.020 Title
This chapter may be cited as the "Capitola Safe Drug and Sharps Disposal Ordinance."

8.40.030 Definitions
For the purposes of this chapter, the following terms have the meanings given below.

A. "City Council" refers to the City Council of the City of Capitola.

B. "City" means the City of Capitola, California.

C. "Consumer Generators" means residents of single and multiple family residences or other locations who possess; dispose of and/or abandon household Covered Drugs or Sharps. "Consumer Generators" does not inClude airport security, drug seizures by law enforcement, pharmacy waste, business waste, or any other source identified by the Department as a non-consumer source.

D. "Controlled Substance" for purposes of this section shall mean any substance listed under California Health and Safety Code Sections 11053 through 11058 and/or Title 21 of the United States Code, Sections 812 and 813 or any successor legislation.

E. "Cosmetics" means (i) articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to, the human body, or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (ii) articles intended for use as a component of any such articles. .

F. "Covered Drug" means all brand name and Generic Prescription Drugs.

Notwithstanding the foregoing sentence, "Covered Drug" does not include: (i) vitamins or supplements; (ii) herbal-based remedies and homeopathic drugs, products, or remedies; (iii) Cosmetics, soap (with or without germicidal agents), laundry detergent, bleach, household cleaning products, shampoos, sunscreens, toothpaste, lip balm, antiperspirants, or other personal care products that are regulated as Cosmetics under the Federal Food, Drug, and Cosmetic Act L
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("FFDCA") (21 U.S.C. Section 301 et seq. (2002»; (iv) Drugs for which Producers provide a take-back program as part of a Federal Food and Drug Administration managed risk evaluation and mitigation strategy (21 U.S.C. Section 355-1); (v) Drugs that are biological products as defined by 21 C.F.R. 600.3(h) as it exists on the effective date of this chapter if the Producer already provides a take-back program; and (vi) pet pesticide products contained in pet collars, powders, shampoos, topical applications, or other delivery systems. "County" means the County of Santa Cruz, Californla.
"Department" means the City of Capitola City's Manager's Department. "City Manager" means the City of Capitola City Manager or his or her designee. "Drug Wholesaler" means a Person that sells or distributes Covered Drugs for resale to an Entity oth~r than a consumer.
"Drugs" means: (i) articles recognized in the official United States Pharmacopoeia, the official National Formulary, the official Homeopathic Pharmacopoeia of the United States, or any supplement to any of them; (ii) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals; (iii) articles, other than food, intended to affect the structure or any function of the body of humans or other animals; and (iv) articles intended for use as a component of any article specified in clause (i), (ii), or (iii) of this definition.

Notwithstanding the foregoing sentence, "Drugs" does not include or mean medical devices, their component parts or accessories.
"Entity" means a Person other than an individual.
"Generic" means a Drug that is chemically identical or bioequivalent to a brand name Drug in dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use, though inactive ingredients may vary.
"Hazardous Waste" means a "hazardous waste" as defined in the Federal Resource Conservation and Recovery Act (RCRA) of 1976, as amended (42 USCA § 6901 et seq.) and the implementing regulations (40 C.F.R. §§239 through 282), as amended. This waste includes, but is not limited to, bulk chemotherapy drugs, P-Iisted waste, U-listed waste and characteristic hazardous waste. "Manufacture" means the production, preparation, propagation, compounding, or processing of Covered Drugs or Sharps but does not include the activities of a Repackager, Drug Wholesaler or medical practitioner who distributes or dispenses such substances or devices in the ordinary course of his or her professional practice or prepares, compounds, packages or labels such substances or devices. "Manufacturer" means a Person engaged in the Manufacture of Covered Drugs or Sharps.
"Mail-back Program" means a system whereby Consumer Generators of Unwanted Products obtain prepaid and preaddres~ed mailing envelopes in which 144
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to. place Unwanted Preducts fer shipment to. an Entity that will dispese ef them safely and legally.
"Medical Waste" means "Medical waste" as defined in Sectien 117690 ef the Califernia Health and Safety Cede, as amended.

S. "Persen" means an individual, firm, sele preprietership, cerperatien, limited liability cempany, general partnership, limited partnership, limited liability partnership, asseciatien, ceeperative, er ether entity ef any kind er nature, hewever erganized.

T. "Pharmacy" means a place licensed by the State ef Califernia Beard ef Pharmacy where the practice ef pharmacy is cenducted.

U. "Plan" er "Preduct Stewardship Plan" means a preduct stewardship plan required under this chapter that describes the manner in which a Preduct Stewardship Pregram will be provided.

V. "Plan Operater" means the Persen that develeps, ir.1plements and eperates a Preduct Stewardship Plan, including but net limited to. a Preducer er Stewardship Organizatien.

W. "Prescriptien Drug" means any Drug, including, but net limited to., any Centro lied Substance, that is required by federal er state law, rule er regulatien to. be dispensed by prescriptien enly er is restricted to. use by practitieners enly. x. "Preducer" shall be determined, with regard to. Cevered Drugs and Sharps that are seld, effered fer sale, er distributed in the City as meaning ene ef the fellewing:

1. The Persen who. Manufactures Cevered Drugs er Sharps and who. sells, effers fer sale, er distributes Cevered Drugs er Sharps in the City under that Persen's ewn name er brand.

2. If there is no. Persen who. sells, effers fer sale, er distributes Cevered Drugs er Sharps in the City under the Persen's ewn name er brand, the Preducer ef Cevered Drugs er Sharps is the ewner er licensee ef a trademark er brand under which the Cevered Drugs er Sharps are seld er distributed in the City, whether er net the trademark is registered.

3. If there is no. Persen who. is a Preducer ef Cevered Dr~gs er Sharps fer purpeses ef paragraphs (1) and (2), the Preducer ef Cevered Drugs er Sharps is the Persen who. brings the Cevered Drug into. the City fer sale er distributien.

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Netwithstanding the feregeing, "Preducer" dees net include: (i) a Retailer er Repackager that enly puts its label en a Cevered Drug er Sharps; (ii) a pharmacist who. dispenses Prescriptien Drugs to., er repackages er cempeunds a prescribed individual Drug preduct fer a censumer; er (iii) a Drug Whelesaler who. is net also. a Manufacturer.
"Product Stewardship Pregram" er "Program" means a pregram financed, develeped, implemented, and eperated by Producers to. cellect, transpert, and dispese ef Unwanted Preducts.
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"Provider" means any Person that sells or otherwise furnishes Covered Drugs or Sharps to consumers at a medical or veterinary office, clinic, hospital or approved needle-exchange program located in the City.

AA. "Public Hearing" means any hearing held by the Department or the City which is open to the public for the purposes of collecting public comment. It does not necessarily refer to meetings of the City Council.

BB. "Repackager" means a Person who owns or operates an establishment that repacks, repackages, and/or re-Iabels a product or package (including a Covered Drug and/or Sharps) for further sale or for distribution without a further transaction.

CC. "Retailer" means any Person that sells Covered Drugs or Sharps directly to consumers at a business located in the City.

DD. "Santa Cruz County Safe Drug and Sharps Disposal Ordinance" refers to Chapter

7.95 of the Santa Cruz County Municipal Code, entitled ", Santa Cruz County Safe Drug and Sharps Disposal", as such may be amended.

EE. "Sharps" means one or more hypodermic needles, pen needles, intravenous needles, lancets and other devices used to penetrate the skin for drawing blood, or for the delivery of medications or Drugs.

FF. "Stewardship Organization" means an organization de~ignated by a group of Producers to act as an agent on behalf of each Producers to operate a Product Stewardship Program.

GG. "Unwanted Products" means Covered Drugs or Sharps no longer wanted by the owner or that have been abandoned, discarded, or are intended to be discarded by the owner.

8.40.040 Product Stewardship Program
A. Requirement for Sale. This chapter shall apply only to Producers whose Covered Drugs and/or Sharps are sold and/or distributed in the City and to Retailers who sell Covered Drugs and/or Sharps in the City. This chapter shall apply only to areas within the City limits. This chapter shall be administered and implemented by the City of Capitola City Manager's Department. Each Producer shall participate in a Stewardship Program. Each Producer must:

1. Operate, individually or jointly with other Producers, a Product Stewardship Program approved by the Department; or

2. Enter into an agreement with a Stewardship Organization to operate, on the Producer's behalf, a Product Stewardship Program approved by the Department.

B. Product Stewardship Program Costs.

1. A Producer, group of Producers, or Stewardship Organization must pay all administrative and operational fees and costs associated with their Product 146
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Stewardship Program and related Product Stewardship Plan, including, but I':; .• not limited to, the cost of collecting, transporting, and disposing of Unwanted Products collected from Consumer Generators and the recycling and/or disposal of packaging collected with the Unwanted Product.

2.· No Person or Producer may charge a specific point-of-sale.- fee to consumers to recoup the costs of their Product Stewardship Program, nor may they charge a specific point-of-collection fee at the time the Unwanted Products are collected from Consumer Generators or delivered for disposal.

3. A Producer, group of Producers, or Stewardship Organization must pay all costs and expenses incurred by the City, including but not limited to the Department, in the administration and enforcement of their Product Stewardship Program. Exclusive of fines and penalties, the City shall only recover its actual costs of administration and enforcement under this chapter and shall not charge any amounts under this chapter in excess of its actual administrative and enforcement costs.

4. A Producer, group of Producers, or Stewardship Organization must pay all collection and disposal costs and expenses as of the date that the ordinance codified in this chapter becomes effective. If the City incurs any costs or expenses due to delays in establishment of an approved Stewardship Plan, the Producer, group of Producers, or Stewardship.

Organization must reimburse the City in full for such costs.

8.40.050 ' Product Stewardship Plan
A. Plan Content. Each Product Stewardship Program shall have a Product Stewardship Plan (which must be submitted, reviewed and approved in accordance with Section 8.40.050(8) below) that contains each of the following:

1. Certification that the Product Stewardship Program will accept all Unwanted Products regardless of who produced them, unless excused from this requirement by the Department as part of the approval of the Plan;

2. Contact information (including the name, physical and mailing address, telephone number, and email address) for the individual and the Entity submitting the Plan, the Plan Operator, and each of the Producers participating in the Product Stewardship Program;

3. A description of the methods by which Unwanted Products from Consumer Generators will be collected and handled at all retail sale facilities of Sharps and Covered Drugs in the City, including without limitation a description of bins to be used and collection methods;

4. A description of the methods by which Unwanted Products from Consumer Generators will be collected and handled at all public health facilities in the City, as well as at such other locations as designated by the Department, 147
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5. including without limitation a description of bins to be used and collection methods;
The location of each collection site and locations where envelopes for a Mail-back Program are available (if applicable);

6. A list containing the name, location, permit status, and record of any penalties, violations, and/or regulatory orders received in the previous five years by each Person that will be involved in collecting and/or transporting Unwanted Products and each Medical Waste or Hazardous Waste disposal facility proposed to participate in the Product Stewardship Program;

7. A description of how the Unwanted Products will be safely and securely tracked and handled from collection through final disposal and the policies and procedures to be followed to ensure security;

8. A description of the public education and outreach activities required under this chapter and how their effectiveness will be evaluated;

9. A description of how the scope and extent of the Product Stewardship Program are reasonably related to the amount of Covered Drugs and Sharps that are sold in the City, by the Producer or group of Producers;

10. A starting date when collection of Unwanted Products will begin;

11. A description of how support will be provided to any law enforcement agencies within the City that have, or later agree to have, a collection program for Controlled Substances, including, without limitation: (i) the provision of a collection kiosk with appropriate accessories and signage, (ii) an ability to accept Controlled Substances and other Covered Drugs, and (iii) technical support up to and including an appropriate Person to provide on-site assistance with the sorting and separation of C.ontrolled Substances at no cost to a participating law enforcement agency;

12. If more than one Producer will be involved in a proposed Product Stewardship Program, then the Product Stewardship Plan for that Program must include a fair and reasonable manner for allocating the costs of the Program among the participants in that Program, such that the portion of costs paid by each Producer is reasonably related to the amount of Covered Drugs and Sharps that Producer sells in the City.

B. . Existing County-Approved Product Stewardship Plan. If a Producer, group of Producers, or Stewardship Organization is/are operating a Product Stewardship Program within the County under an existing Product Stewardship Plan that has been approved by the County of Santa Cruz in accordance with Chapter 7.95 of the Santa Cruz County Code ("County-Approved Plan"), such Producer, group of Producers, or Stewardship Organization may comply with Section 8.40.050(A) above, by supplementing such County-Approved Plan to cover the City and include all items listed in Section 8.40.050(A) above. The Product Stewardship Plan, as supplemented, must be submitted to the Department for review and 148
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approval of the provisions relating to and/or applicable to the City in accordance with Section 8.40.050(D) below.

Department Review and Approval; Updates.

1. No Producer, group of Producers, or Stewardship Organization within the City may begin collecting Unwanted Products to comply with this chapter until it has received written approval of its Product Stewardship Plan from the Department. The City may (in its discretion) continue collection on an interim basis if there is any delay in establishing a Stewardship Program as required under this chapter. Once approved by the Department, each Product Stewardship Plan must receive prior written approval from the Department for any proposed changes to the Plan.

2. All Product Stewardship Plans must be submitted to the Department for approval. Each Producer, group of Producers, or Stewardship Organization operating a Product Stewardship Program shall submit its initial Product Stewardship Plan (conforming to the above requirements) to the Department for review within sixty (60) days after the effective date of this chapter, or at a later date' as approved in writing by the Department.

3. Within sixty (60) days after the Department's receipt and review of a Product Stewardship Plan, the Department will determine whether the Plan complies with the requirements of this chapter and of any regulations adopted pursuant to this chapter. The Department may at its sole discretion conduct a noticed Public Hearing as part of this process. a. As part of its approval, the Department may set reasonable performance goals for the Program.
b. If the Department approves a Plan, it shall notify the applicant of its approval in writing.
c. If the Department rejects a Plan, it shall notify the applicant in writing of its reasons for rejecting the Plan. The Department may reject a Plan without conducting a Public Hearing.
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An applicant whose Plan has been rejected by the Department must submit'a revised Plan to the Department within thirty (30) days after receiving notice of the rejection. The Department may require the submission of a further revised Plan or, at its sole discretion, the Department may (without any obligation to do so) develop, approve and impose upon the applicant the Department's own Product Stewardship Plan or an approved Plan submitted by other Producer(s) pursuant to this chapter. The imposed Plan will be presented at a Public Hearing. The Department is not required, and nothing in this chapter shall be interpreted as requiring, the Department to create or impose a Product Stewardship Plan.

If the Department rejects a revised Product Stewardship Plan or any other subsequently revised Plan, the City Manager may deem [
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4. the Producer(s) at issue to be out of compliance with this chapter and subject to the enforcement provisions contained in this chapter.

At least every three (3) years, a Producer, group of Producers or Stewardship Organization operating a Product Stewardship Program shall update its Product Stewardship Plan, explaining any substantive changes to components of the Plan, and submit the updated Plan to the Department for review and approval.

5. A Producer who begins to offer a Covered Drug or Sharps for sale in the City after the effective date of this chapter, must submit a Product Stewardship Plan to the Department or provide evidence of having joined an existing approved Product Stewardship Program within sixty (60) days following the Producer's initial offer for sale of a Covered Drug or Sharp in the City.

6. Any proposed changes to a Product Stewardship Plan must be submitted in writing to the Department and approved by the Department in writing prior to implementation of any change. Notwithstanding the foregoing, for County-Approved Plans, only those changes relating to and/or applicable to the City must be submitted in writing to the Department for review and approval before implementation.

7. Required Plan Amendment. Within 60 days of the final promulgation of rules by the California Board of Pharmacy regarding collection of controlled substances by retail pharmacies in conformity with the U.S. Drug Enforcement Agency regulations implementing the Secure and Responsible Drug Disposal Act of 2010, each Producer, group of Producers or Stewardship Organization operating a Product Stewardship Program shall submit to the Department for review and approval an update to its Product Stewardship Plan that describes how the Plan will, within 120 days, comply with and conform to the requirements of such final rules of the California Board of Pharmacy.

8. The Department may audit the records of a Producer, group of Producers, or Stewardship Organization related to a Product Stewardship Plan and/or Product Stewardship Program, or request that the Producer, group of Producers, or Stewardship Organization arrange for the Department to inspect at reasonable times the facilities, vehicles, and equipment used in carrying out the Product Stewardship Plan.

8.40.060 Disposal of Unwanted Products
A. Compliance with Applicable Law. Each Product Stewardship Program must comply with all local, state, and federal laws and regulations applicable to its operations, including, but not limited to, laws, rules, and regulations governing the treatment and disposal of Unwanted Products.

B. Treatment and Disposal. Each Product Stewardship Program must treat Sharps waste by high heat sterilization and dispose of all unwanted Covered Drugs by incineration at a Medical Waste or Hazardous Waste facility authorized to accept 150
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such waste. Each treatment and/or disposal facility utilized must be in possession of all required regulatory permits and licenses.

New Technologies. Producers with Product Stewardship Programs may petition the Department for approval to use treatment and final disposal technologies, where lawful, that provide superior environmental and human health protection than provided by current Medical Waste or Hazardous Waste disposal technologies for Sharps and Covered Drugs if and when those technologies are proven and available. The proposed technology, at a minimum, must provide equivalent protection in each, and superior protection in one or more, of the following areas:

1. Monitoring of any emissions or waste;

2. Worker health and safety;

3. Reduction or elimination of air, water, or land emissions contributing to persistent, bioaccumulative, and toxic pollution; and

4. Overall impact on the environment and human health.

D. Packaging Separation. Each Product Stewardship Program shall encourage Consumer Generators to separate Unwanted Products from their original containers and packaging, when appropriate, prior to collection or disposal.

8.40.070 Product Stewardship Program Promotion and Outreach A. A Product Stewardship Program must promote the Program to Consumer Generators, pharmacists, Retailers of Covered Drugs and/or Sharps, and health care practitioners (including, but not limited to, doctors and other prescribers,. veterinarians and veterinary hospitals) as to the proper and safe method to storage and dispose of Unwanted Products.

B. A Product Stewardship Program shall include, but is not limited to, developing, and updating as necessary, educational and other outreach materials for use by Retailers of Covered Drugs and/or Sharps. These materials may include, but are . not limited to, two or more of the following:

C.

1. Signage that is prominently displayed and easily visible to the consumer.

2. Written materials and templates of materials for reproduction by Retailers to be provided to the consumer at the time of purchase or delivery, or both.

3. Advertising and/or other promotional materials related to the Product Stewardship Program. .

A Product Stewardship Program must prepare education and outreach materials that publicize the location and operation of collection locations in the City and disseminate the materials to health care facilities, Pharmacies, and other interested parties. The Program also must establish a website publicizing collection locations and Program operations and a toll-free telephone number that Consumer Generators can call to find nearby collection locations and understand how th~ Program works. L
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8.40.080 Retailer and Provider participation
A. Every Retailer and every Provider of Covered Drugs and Sharps in the City shall establish a system consistent with the requirements of this chapter for the collection of consumer-generated Covered Drugs and Sharps waste for proper disposal during the Retailer's or Provider's normal hours of operation, except that:

1. A Retailer or Provider who does not sell or provide Sharps to consumers is not required to establish a collection system for Sharps waste; and

2. A Retailer or Provider who does not sell or provide Covered Drugs to consumers is not required to establish a collection system for Covered Drugs waste.

B. Each system established by a Retailer or Provider for the collection and disposal of consumer generated Covered Drugs and Sharps waste shall include, at a minimum, the following elements:

C.

1. Subject to the limitations contained in subsection (A) of this Section above and subsection (E) of this Section below, each Retailer or Provider shall provide one of the following:
a. On-site collection system. Receptacles for the collection of consumer-generated Covered Drugs and Sharps waste within the Retailer or Provider establishment. The receptacle shall meet applicable state and federal standards for safe disposal of Covered Drugs and/or Sharps. The Retailer or Provider shall provide for the management and disposal of all consumer-generated Covered Drugs and/or Sharps waste that is collected at the Retailer or Provider establishment in a safe manner consistent with all state and federal laws and regulations; or
b. Mail-back collection system. Prepaid and preaddressed mail-back envelopes in sufficient capacity for safe disposal of the Covered Drugs and/or Sharps sold or provided to a consumer and meeting applicable state and federal standards for safe disposal of Covered Drugs and/or Sharps.

2. Signage prominently displayed within five feet of every public entrance to the Retailer or Provider establishment and easily visible to the consumer, indicating that the Retailer or Provider establishment collects consumergenerated Covered Drugs and/or Sharps waste from consumers.

A Retailer or Provider of Sharps must provide at no additional cost to the consumer an approved Sharps disposal container or containers sufficient to dispose of all Sharps purchased. A Retailer or Provider of Sharps may refuse to accept from a consumer Sharps waste that is not properly contained in an approved container. In the event of a refusal to accept Sharps waste, the Retailer or Provider shall provide the consumer with an appropriate container for proper disposal of said Sharps waste.
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Sharps disposal containers shall be either a rigid puncture-resistant container with a sealable lid approved by the U.S. Food and Drug Administration for the purpose of transporting Sharps for disposal or a pre-paid mail-back container approved by the U.S. Food and Drug Administration for the purpose of transporting Sharps for disposal.

E. All costs of participation by Retailers and Providers shall be paid or reimbursed by the Producer, group of Producers, or Stewardship Organization as part of its Program as provided in this chapter. Retailers and Providers shall not be expected to incur any costs for participation in a Product Stewardship Program.

8.40.090 Lists of Producers and Manufacturers of Covered Drugs and Sharps A. Within sixty (60) days after the effective date of this chapter (or at a later date as approved in writing by the Department), each Drug Wholesaler that sells any Covered Drugs and/or Sharps in the City must provide a list of the Producers of those Covered Drugs and/or Sharps to the Department in a form prescribed by the Department. Drug Wholesalers must update and submit to the Department such list of Producers of Covered Drugs and/or Sharps by January 15th of each calendar year.

B. Within six (6) months after the effective date of this chapter, or within six (6) months after a Retailer whose label appears on a Covered Drug or Sharps or on the Covered Drug's or Sharps' packaging starts selling the Covered Drug or Sharps in the City (or at a later date as approved in writing by the Department), and, thereafter, upon request from the Department, a Retailer whose label appears on a Covered Drug or Sharps or on the Covered Drug's or Sharps' packaging must provide the contact information of the Manufacturer from whom the Retailer obtains the Covered Drug or Sharps, including the mailing address, physical address, telephone number, and email address of the Retailer's point of contact at the Manufacturer.

C. Within six (6) months after the effective date of this chapter, or within six (6) months after a Covered Drug or Sharps repackaged by a Repackager is first sold in the City (or at a later date as approved in writing by the Department), and, thereafter, upon request from the Department, a Repackager whose label appears on a Covered Drug or Sharps or on the Covered Drug's or Sharps' packaging must provide the contact information of the Manufacturer from whom the Repackager obtains the Covered Drug or Sharps, including the mailing address, physical address, telephone number, and email address of the Repackager's point of contact at the Manufacturer.

8.40.100 Reporting
A. On or before July 1, 2017 (or at a later date as approved in writing by the Department) and in each subsequent year, every Producer, group of Producers, or Stewardship Organization operating a Product Stewardship Program in the City must prepare and submit to the Department an annual written report describing the Program activities during the previous reporting period. The report must include, at minimum, the following:

1. A list of Producers participating in the Product Stewardship Program; [
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2. A list of Retailers and/or Providers participating in the collection of consumer-generated Covered Drugs and/or Sharps waste;

3. The amount, by type and by weight, of Unwanted Products collected from Consumer Generators collected at each drop-off site and in the entire City and, if applicable, the total amount by type and by weight collected by a Mail-back Program;

4. A description of the collection system, including, without limitation, the location of each collection site and if applicable, locations where envelopes for a Mail-back Program are provided;

5. The name and location of disposal facilities at which Unwanted Products were disposed of and the weight by type of Unwanted Products collected from Consumer Generators disposed of at each facility;

6. Whether policies and procedures for collecting, handling, transporting, and disposing of Unwanted Products, as established in the Plan, were followed during the reporting period and a description of any noncompliance;

7. Whether any safety or security problems occurred during collection, handling, transportation, or disposal of Unwanted Products during the reporting period and, if so, what changes have or will be made to policies, procedures, or tracking mechanisms to alleviate the problem and to improve safety and security;

8. A description of public education and outreach activities implemented during the reporting period and their effectiveness, including, without limitation, the methodology used to evaluate the outreach and Program activities;

9. How the Product Stewardship Program complied with all other elements in the Product Stewardship Plan approved by the Department, including, without limitation, its degree of success in meeting any performance goals set by the Department as part of its approval of the Program; and

10. Any other information that the Department may reasonably require.

B. For the purposes of this section, "reporting period" means the period beginning January 1 and ending December 31 of the same calendar year.

8.40.110 Program Assessment and Collection of Data
A. At least once per year, at a time to be determined by the Department, each Product Stewardship Program will conduct a detailed characterization study of Unwanted Products collected at specified locations to help assess effectiveness of the Product Stewardship Program
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Assessments shall be conducted in a secure location with proper supervision, in full compliance with federal and state laws, rules, and regulations, and in accordance with guidelines issued by the Department.

C. Data collected from Program assessments shall be shared with the Department and other relevant agencies in a timely manner.

D. The Department may require additional assessments as needed to address problems or to help determine Program needs.

8.40.120 List of Producers
The Department shall provide on its website a list of all Producers participating in Product Stewardship Programs approved by the Department and a list of all Producers the Department has identified as noncompliant with this chapter or any regulations adopted pursuant to this chapter.

8.40.130 . Regulations and fees
A. The City Manager may, after a noticed Public Hearing, adopt such rules and regulations as necessary to implement, administer, and enforce this chapter.

B. The City Council authorizes the City Manager to charge Producers or a group of Producers participating in a Product Stewardship Program for any costs the City incurs in administering and enforcing this chapter. The amount charged shall not exceed actual costs to the City.

8.40.140 Enforcement
A. The Department shall administer the penalty provisions of this chapter.

B. It shall be unlawful for any person to violate any provision or fail to comply with any of the requirements of this chapter.

C. Any Person, Producer, Plan Operator or Product Stewardship Organization that violates or continues to violate the provisions of this chapter shall be subject to the penalties, remedies, and criminal, civil and/or administrative enforcement actions set forth in Title 4 of the Capitola Municipal Code. Each and every day a violation of this chapter exists constitutes a separate and distinct offense for which enforcement action may be taken.

D. In determining the appropriate penalties, the Department shall consider the extent of harm caused by the violation, the nature and persistence of the violation, the frequency of past violations, any action taken to mitigate the violation, and the financial burden to the violator.

E. Whenever the City finds that a Person has violated a provision or failed to meet a requirement of this chapter, the City may order compliance by written notice of violation to the responsible Person pursuant to Chapter 4.10 of the Capitola Municipal Code.

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F.

ORDINANCE NO.1 006 3056
The Department may establish appropriate administrative rules for implementing this chapter, conducting hearings, and rendering decisions pursuant to this section.

G. Upon the failure of any Person to comply with any requirement of this chapter and any rule or regulation adopted pursuant to this chapter, the City Attorney's office may petition any court having jurisdiction for injunctive relief, payment of civil penalties and any other appropriate remedy, including, without limitation, restraining such Person or Entity from continuing any prohibited activity and compelling compliance with lawful requirements. However, this subsection does not permit the City or any court of competent jurisdiction to restrain the sale of any Covered Drug or Sharps in the City.

H. Any Person who knowingly and willfully violates the requirements of this chapter or any rule or regulation adopted pursuant to this chapter is guilty of a misdemeanor.

A conviction for a misdemeanor violation under this chapter is punishable by a fine of not less than fifty dollars ($50.00) and not more than five hundred ($500.00) for each day per violation, or by imprisonment for a period not to exceed six (6) months, or by both such fine and imprisonment.

I. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.

8.40.150 Additional provisions
A. Disclaimer. In adopting and implementing this chapter, the City is assuming an undertaking only to promote the general welfare. The City is not assuming or imposing on its officers and/or employees an obligation by which they could be liable in money damages to any Person or Entity who claims that a' breach proximately caused injury.

B. Conflict with State or Federal Law. This chapter shall be construed so as not to conflict with applicable federal, State, and/or Santa Cruz County laws, rules or regulations. Nothing in this chapter shall authorize any City agency or Department to impose any duties or obligations in conflict with limitations on municipal authority established by state or federal law at the time such agency or Department action is taken. The City shall suspend enforcement of this chClpter to the extent that said enforcement would conflict with any preemptive State or federal legislation subsequently adopted.

C. Severability. If any of the provisions of this chapter or the application thereof to any Person or circumstance is held invalid, the remainder of those provisions, including the application of such part or provisions to Persons or circumstances other than those to which it is held invalid shall' not be affected thereby and shall continue in full force and effect. To this end, the provisions of this chapter are severable.

D. Nothing in this chapter, or the Product Stewardship Program in which Producers of Sharps and Covered Drug products who sell Sharps and/or Covered Drugs in the are required to participate, is intended to protect anticompetitive or collusive conduct nor shall this chapter be construed to modify, impair, or supersede the 156
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3057 ORDINANCE NO.1 006
operation of any of the antitrust laws or unfair competition laws of the State of California or of the United States.

E. This chapter shall be construed in accordance with California state law, including but not limited to the Medical Waste Management Act set forth at California Health and Safety Code Section 117600, et seq., and shall not be construed in a way that would result in conflict with, or preemption by, any such state law.

F. Environmental Findings. This chapter is entitled to a categorical exemption of the California Environmental Quality Act ("CEQA") pursuant to 14 California Code of Regulations sections 15307, which exempts "actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection."
G. This chapter shall be in effect for a period of ten (10) years following enactment.

SECTION II
This Ordinance shall take effect on the 31 st day after the date of final passage.

This ordinance was introduced on the 25th day of August, 2016, and was passed and adopted by the City Council of the City of Capitola on the 8th day of September, 2016, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Council Members Bertrand, Harlan, Norton, Termini, and Mayor Bottorff None
None
None
Ed Bottorff, Mayor
Attest ~dl-\, CMC
Susan Sneddon, City Clerk
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ORDINANCE NO. ______

AN URGENCY ORDINANCE OF THE CITY OF CAPITOLA AMENDING
SECTION 8.40.150 OF THE CAPITOLA MUNICIPAL CODE TO REMOVE THE SUNSET PROVISION FROM CHAPTER 8.40 (CAPITOLA SAFE

DRUG AND SHARPS DISPOSAL), DECLARING THE URGENCY

THEREOF, AND PROVIDING THAT THIS ORDINANCE SHALL TAKE

EFFECT IMMEDIATELY
WHEREAS, Article XI, Section 7 of the California Constitution authorizes the City of Capitola (the “City”) to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, on September 8, 2016, the City Council adopted Ordinance No. 1006, which added Chapter 8.40 (“Capitola Safe Drugs and Sharps Disposal”) to the Capitola Municipal Code, establishing a producer-funded product stewardship program for the safe collection and disposal of unwanted drugs and sharps within the City; and WHEREAS, subsection (G) of Section 8.40.150 of the Capitola Municipal Code provides that “[t]his chapter shall be in effect for a period of ten (10) years following enactment,” and, by operation of that provision, Chapter 8.40 will expire immediately unless the sunset provision is removed; and
WHEREAS, Public Resources Code section 42036.2 provides that the state program applies within a jurisdiction if the local ordinance “is repealed,” and a lapse of Chapter 8.40 would place the City’s program at risk of becoming subject to the state program, with the City potentially precluded from re-establishing its local program; and WHEREAS, the amendment made by this Ordinance is narrow, removing only the sunset provision and leaving the remainder of Chapter 8.40 in full force and effect, and is intended to keep the existing pre-2018 local program continuously in effect rather than to enact a new program; and
WHEREAS, a lapse of Chapter 8.40 would result in the removal of manufacturerfunded sharps collection kiosks currently available to City residents, materially reducing safe disposal options and increasing the risk of improper disposal of drugs and sharps, accidental poising, needlestick injury, substance misuse, and environmental contamination, as more fully described in the recitals to Ordinance No. 1006; and WHEREAS, an ordinance adopted through the ordinary process would not take effect until 30 days after its final passage and therefore could not prevent the imminent lapse of Chapter 8.40, such that immediate effectiveness is necessary to preserve, without interruption, the existing public health and safety protections provided by Chapter

8.40; and
WHEREAS, this Ordinance is adopted as an urgency ordinance for the immediate preservation of the public peace, health, and safety pursuant to Government Code section 158
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36937(b), and may be passed immediately upon introduction pursuant to Government Code section 36934; and
WHEREAS, the City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines (Title 14, California Code of Regulations) section 15307 and the common-sense exemption in section 15061(b)(3), consistent with the environmental findings made in connection with Ordinance No. 1006, because it can be seen with certainty that removing the sunset provision to continue an existing regulatory program will not have a significant effect on the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAPITOLA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Findings. The City Council of the City Capitola finds and declares that the Recitals set forth above are true and correct and are incorporated herein by this reference.

Section 2. California Environmental Quality Act. The City Council finds, for the reasons stated in the recitals, that adoption of this Ordinance is exempt from CEQA, and directs staff to file a Notice of Exemption if appropriate.

Section 3. Amendment to Section 8.40.150(G). Subsection G of Section

8.40.150 of the Capitola Municipal Code, which reads in its entirety, “This chapter shall be in effect for a period of ten (10) years following enactment,” is hereby deleted in its entirety. All other provisions of Section 8.40.150 and of Chapter 8.40 of the Capitola Municipal Code remain unchanged and in full force and effect.

Section 4. Declaration of Urgency. This Ordinance is an urgency ordinance adopted pursuant to Government Code section 36397(b) for the immediate preservation of the public peace, health, and safety. The facts constituting the urgency are those set forth in the recitals above, including, without limitation: the imminent expiration of Chapter

8.40 under its sunset provision; the resulting risk of the loss of the City’s exemption from the state pharmaceutical and sharps stewardship program under Public Resources Code section 42036.2; the removal of manufacturer-funded sharps collection kiosks that would follow the lapse of Chapter 8.40; and the increased risks to public health and safety from reduced safe disposal options for drugs and sharps. Because a regularly adopted ordinance would not take effect in time to prevent the lapse of Chapter 8.40, immediate effectiveness is necessary to preserve these existing protections without interruption.

Section 5. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases by declared invalid or unconstitutional.
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Section 6. Effective Date. Pursuant to Government Code section 36937(b), this Ordinance shall take effect immediately upon its adoption by a four-fifths (4/5) vote of the City Council.

Section 7. Publication. The City Clerk shall cause this ordinance, or a summary thereof, to be posted and/or published in the manner required by law.

INTRODUCED AND ADOPTED as an urgency ordinance at a special meeting of the City Council of the City of Capitola on the __ day of ____, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
Margaux Morgan, Mayor
ATTEST: _________________________
Julia Gautho, City Clerk
APPROVED AS TO FORM:
_________________________________
Marc Tran, City Attorney
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4899-7445-7036 v2
ORDINANCE NO. ______

AN ORDINANCE OF THE CITY OF CAPITOLA AMENDING SECTION

8.40.150 OF THE CAPITOLA MUNICIPAL CODE TO REMOVE THE
SUNSET PROVISION FROM CHAPTER 8.40 (CAPITOLA SAFE DRUG

AND SHARPS DISPOSAL)
WHEREAS, Article XI, Section 7 of the California Constitution authorizes the City of Capitola (the “City”) to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, on September 8, 2016, the City Council adopted Ordinance No. 1006, which added Chapter 8.40 (“Capitola Safe Drugs and Sharps Disposal”) to the Capitola Municipal Code, establishing a producer-funded product stewardship program for the safe collection and disposal of unwanted drugs and sharps within the City; and WHEREAS, subsection (G) of Section 8.40.150 of the Capitola Municipal Code provides that “[t]his chapter shall be in effect for a period of ten (10) years following enactment,” and, by operation of that provision, Chapter 8.40 will expire immediately unless the sunset provision is removed; and
WHEREAS, the California Pharmaceutical and Sharps Waste Stewardship program (Senate Bill 212, Stats. 2018, ch. 1004), codified at Public Resources Code section 42036.2, does not apply to a jurisdiction that is subject to a local drug and sharps stewardship program pursuant to an ordinance that took effect before April 18, 2018, and provides that such a pre-existing local program may continue in operation; and WHEREAS, Chapter 8.40 took effect before April 18, 2018, and the City’s local program is therefore exempt from the state program for so long as Chapter 8.40 remains continuously in effect; and
WHEREAS, the amendment made by this Ordinance is narrow, removing only the sunset provision and leaving the remainder of Chapter 8.40 in full force and effect, and is intended to keep the existing pre-2018 local program continuously in effect rather than to enact a new program; and
WHEREAS, a lapse of Chapter 8.40 would result in the removal of manufacturerfunded sharps collection kiosks currently available to City residents, materially reducing safe disposal options and increasing the risk of improper disposal of drugs and sharps, accidental poising, needlestick injury, substance misuse, and environmental contamination, as more fully described in the recitals to Ordinance No. 1006; and WHEREAS, the City Council has concurrently adopted an urgency ordinance removing the same sunset provision effective immediately, and adopts this Ordinance through the ordinary legislative process to provide a permanent amendment of the Capitola Municipal Code; and
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4899-7445-7036 v2
WHEREAS, the City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines (Title 14, California Code of Regulations) section 15307 and the common-sense exemption in section 15061(b)(3), consistent with the environmental findings made in connection with Ordinance No. 1006, because it can be seen with certainty that removing the sunset provision to continue an existing regulatory program will not have a significant effect on the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAPITOLA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Findings. The City Council of the City Capitola finds and declares that the Recitals set forth above are true and correct and are incorporated herein by this reference.

Section 2. California Environmental Quality Act. The City Council finds, for the reasons stated in the recitals, that adoption of this Ordinance is exempt from CEQA, and directs staff to file a Notice of Exemption if appropriate.

Section 3. Amendment to Section 8.40.150(G). Subsection G of Section

8.40.150 of the Capitola Municipal Code, which reads in its entirety, “This chapter shall be in effect for a period of ten (10) years following enactment,” is hereby deleted in its entirety. All other provisions of Section 8.40.150 and of Chapter 8.40 of the Capitola Municipal Code remain unchanged and in full force and effect.

Section 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases by declared invalid or unconstitutional.

Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption by a majority vote of the City Council.

Section 6. Publication. The City Clerk shall cause this ordinance, or a summary thereof, to be posted and/or published in the manner required by law.

INTRODUCED at a special meeting of the City Council of the City of Capitola on the __ day of ____, 2026, and PASSED AND ADOPTED at a regular meeting of the City Council on the ___ day of ___, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
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4899-7445-7036 v2
_________________________________
Margaux Morgan, Mayor
ATTEST: _________________________
Julia Gautho, City Clerk
APPROVED AS TO FORM:
_________________________________
Marc Tran, City Attorney
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Safe Drug
and Sharps
Disposal
Ordinance
CMC
Chapter

8.40 City Council
Special Meeting
September 10, 2026
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• Coordinated countywide effort
• Requires manufacturers to fund
safe collection and disposal
City adopted CMC 8.40 in
2016
• Mail-back options
• Collection receptacles
participating pharmacies and
City Hall
MED-Project program since
2017
Safe Drug & Sharps Disposal Ordinance
Capitola’s Existing Program
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Item 3 A.
•Statewide, producer-funded program
overseen by CalRecycle
•Pre-2018 local ordinances may remain
in effect
SB 212 (2018)
•Only if it remains continuous
•If expired, cannot adopt replacement
ordinance
•Statewide service may take up to 270
days to begin
Capitola’s ordinance
qualifies
Safe Drug & Sharps Disposal Ordinance
State Program Established in
2018
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Item 3 A.
• Capitola: September 8, 2026
• Scotts Valley: December 2026
• Watsonville: early 2027
All local Ordinance contain
10-year sunset
• Defaults to statewide program
• Collection for materials removed
• No transition plan for uninterrupted
service
County & City of Santa Cruz
expired
Safe Drug & Sharps Disposal Ordinance
Ordinance Is Set to Expire
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• Requires on-site collection or prepaid
mail-back
• Requires free sharps disposal containers
• Requires support for a law-enforcement
collection kiosk
• Producers pay all program costs
Capitola’s local program
• Medication access measured countywide,
not city by city
• Sharps disposal is primarily through
mail-back
• A collection kiosk in Capitola is not
required
iddiil
Statewide SB 212 program
Safe Drug & Sharps Disposal Ordinance
Local and State Programs Are
Different
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Item 3 A.
• No changes to program requirements
• Preserves the pre-2018 local
program
•Remove 10-year expiration
language
• Adopt urgency ordinance for
immediate effect
• Introduce regular ordinance for
first reading
• Urgency ordinance remains in
effect until regular ordinance
tkfft
•Recommended Action
Safe Drug & Sharps Disposal Ordinance
Proposed Ordinance Amendment
169
Item 3 A.

Adopt an urgency
ordinance amending
Chapter 8.40 of the
Capitola Municipal Code
to remove the
expiration language in
Section 8.40.150(G), so
the City’s safe drug
and sharps disposal
requirements remain in
effect; and introduce
for first reading,
waiving further
reading, an ordinance
amending Chapter 8.40
of the Capitola
Safe Drug & Sharps Disposal Ordinance
Recommended Action
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Item 3 A.