RevisedDraft (April 13, 2011) MODEL ORDINANCE REGULATING MEDICAL MAR IJUANA DISPENSARIES IN LAKE COUNTY Purpose The

purpose of this ordinance is to implement Proposition 215, codified atCalifornia Health and Safety Code Section 11362.5 and knownas the Compassionate Use Act of 1996, and also SB-420, codified at California Health and Safety Code Section 11362.7-11362.83and known as the Medical Marijuana Program Act, a state law passed to clarify and help further implement the Compassiona Use Act. te This dispensary ordinance is intended: A. To help ensure that Lake County residents can safety obtai use marijuana for medical n and purposes where that medical use has been deemed appropriate by a physician in accordance with California law. B. To help ensure that the qualified patients and their primary caregivers who obtain or cultivate marijuana solely for the qualified patient's medical treatment are not subject to arrest, criminal prosecution, or sanction. C. To protect citizens from the adverse impacts of irresponsible medical marijuana distribution, storage, and use practices. D. To establish a new section in the zoning ordinance pertaining to the permitted distribution of medical marijuana in the County of Lakeconsistent with state law. Definitions The following words or phrases, when used herein, shall be given the following definitions: A. Medical marijuana dispensary or dispensary means any storefront facility which distributes, transmits, gives, or otherwise provides medical marijuana to qualified patients or primary caregivers in accordance with California Health and Safety Code section 11362.5 through section 11362.83, inclusive, commonly referred to as the Compassionate Use Act of 1996 and the Medical Marijuana Program. B. A medical marijuana collective or cooperative means an organization that facilitates the collaborative efforts of patient and caregiver members including the allocation of costs and revenues. A medical marijuana patient growing collective" or cooperative that does not operate as a storefront dispensary is exempt from the provisions of this ordinance. C. Physician means a state licensed medical doctor or osteopath . D. Qualified patient as used herein shall meana person who has a State of California Medical

Marijuana Identification Card or a written rec mmendation to use marijuana for medical purposes o from a physician licensed to practice in the State of California and who is entitled to the protections of Section 11362.5 of the California Health and Safety Code (Proposition 215, the Compassionate Use Act of 1996). E. Primary caregiver means the individual designated by a qualified patient to obtain, possess and/or cultivate marijuana for the qualified patient, andwho has consistently assumed responsibility for the housing, health, or safety of that person. F. Planning Director means the Director of Community Development, or an Assistant Planner designated by the Director of Community Development. G. Attorney Generals Guidelines means the August 2008 California Attorney Generals Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use and any subsequent medical marijuana guidelines issued by the California Attorney General.

Dispensary License Required to Operate No dispensary may open or remain open without a current Dispensary License obtained from the County of Lake. Any Dispensary License issued shall not be valid until the licensee pays all associated fees.

Limitation on Number of Dispensaries and Term of License A. As of the effective date of this Ordinance, fifteen (15) dispensaries shall be allowed and granted Dispensary Licenses. Notwithstanding any other provisions of this ordinance, all the dispensaries currently operating in commercial zoning districts that were operating on September 15, 2009 (the effective date of the dispensary moratorium), shall be allowed to continue operating during the application process and shall be granted licenses unless there is clear and convincing evidence that they are not operating in accordance with California law, or are not able to comply with this ordinance, or are located within six hundred (600) feet of a school, or are generating an inordinate number of well-founded law enforcement calls, or cannot pass a background check as set forth herein. B. On an annual basis, upon payment of annual renewal fees, each dispensary license shall be renewed by the County unless there is clear and convincing evidence that the dispensary is not operating in accordance with California law or in substantial compliance with this ordinance, or is generating an inordinate number of well-founded law enforcement calls, or cannot pass a background check as set forth herein. If an existing licensed dispensary fails to renew its license in a timely manner, after 15 days written notice from the County, during which time the existing dispensary can renew its license, the license will become available for another dispensary. Within 20 days after a dispensary license becomes available, the County will give public notice and will accept applications for an available dispensary license for 60 days after such public notice. If there is more than one applicant who passes a background check, the applications shall be forwarded to the Planning Commission for a decision as to which application to grant. If no one applies for an available dispensary license in the 60 day period, the first to apply after said period shall have his/her application processed before any others are considered.

Limitation on Location of Dispensaries Dispensaries may be located in commercial zoning districtswhich allow drug stores and retail alcohol sales, and shall be subject to the same requirements and land use restrictions as other lawful businesses in the county, in addition to the provisions of this ordinance. Dispensaries shall be located at least six hundred (600) feet from a public or private elementary, middle, or high school, distance to be measured along the most direct public road or pedestrian pathway.

License Application Preparation and Filing A. Application Filing. A complete Medical Marijuana Dispensary License application packet shall be submitted, including all required fees. The application and all materials required by the County shall be based on the requirements of this ordinance. All applications shall be filed with the Planning Department, using forms provided by the County, and accompanied by the applicable filing fees. It is the responsibility of the applicant to provide information required for approval of the license. The application shall be made under penalty of perjury. B. Eligibility for Filing. Applications may only be filed by the owner of the subject property, or by a person or entity with a lease signed by the owner or duly authorized agent of the owner allowing them to occupy the property for the use of a dispensary. C. Filing Date. The filing date of any application shall be the date when the County receives the last submission of information or materials required in compliance with the submittal requirements specified herein. D. Effect of Incomplete Filing Upon written notification that an application submittal is incomplete, . the applicant shall be granted a 30 day extension of time to submit all materials required to complete the application. If the application remains incomplete after the 30 days, the application shall be deemed withdrawn, a new application shall be required, and the County shall so notify the applicant. The time period for granting or denying an application shall be stayed during the period in which the applicant is granted an extension of time. E. Effect of Other Permits or Licenses The fact that an applicant possesses other types of state or . County permits or licenses does not exempt the applicant from the requirement of obtaining a Dispensary License.

Criteria for Review of Dispensary Applications by Planning Department A. Decision on Application Upon an application for a Dispensary License being deemed complete, . the Planning Director, within 30 days, or the Planning Commission on appeal of a decision of the Planning Director, shall either issue a Dispensary License or deny a Dispensary License in accordance with this ordinance. A denial shall be in writing, with a complete explanation of the reasons for the denial. B. Criteria for Issuance. The Planning Director, or the Planning Commission on appeal, shall

consider the following criteria in determining whether to grant or deny a Dispensary License. 1. That the applicant must be at least 21 years old and a resident of California. 2. That the proposed location of the dispensary is not in an area of high crime activity, based upon crime reporting statistics maintained and published by the Sheriffs Department. 3. That the applicant has not been convicted of a felony within the past ten (10) years. 4. That all required application fees have been paid. 5. That the applicant produces a copy of a valid sellers permit issued by the State Board of Equalization. 6. That the location is not prohibited by the provisions of this ordinance or any local or state law, statute, rule or regulation, and that compliance with other applicable requirements of the Countys zoning ordinance will be accomplished. 7. That the applicant will provide adequate lighting, a burglar alarm system monitored by a statelicensed monitoring service, security cameras , and a safe, to ensure the safety of persons and to help protect the premises from theft. 8. That the applicant has not knowingly made a false statement of material fact or knowingly omitted to state a material fact in the application for a dispensary license. Appeal from Planning Directors Determination A. Appeal to the Planning Commission An applicant who disagrees with the Planning Directors . decision to deny a Dispensary License, or with any other determination, may appeal to the Planning Commission by filing an appeal pursuant to the requirements of the County Code. B. Notice of Planning Commission Appeal Hearing Upon the filing of an appeal pursuant to . subparagraph (A) above, the Planning Director shall provide public notice in accordance with the notice provisions of the County Code. C. Appeal to the Board of Supervisors A decision by the Planning Commission may be appealed . to the Board of Supervisors. Upon the filing of an appeal, the Planning Director shall provide public notice in accordance with the notice provisions of the County Code. Suspension and Revocation by Planning Commission A. Authority to Suspend or Revoke a Dispensary License A Dispensary License issued under the . terms of this ordinance may be suspended or revoked by the Planning Commission when it determines, based on evidence presented at a public hearing, that the licensee has substantially violated the provisions of this ordinance or state law. Such action by the Planning Commission may be appealed to the Board of Supervisors. B. Written Notice of Suspension or Revocation No license shall be revoked or suspended until . written notice of the intent to consider revocation or suspension of the license has been served upon the licensee at least fifteen (15) days prior to the date set for the public hearing. A written statement of the reasons for the proposed revocation or suspension shall be included in this

notice. Notice may be given either by personal delivery to the licensee, or by depositing such notice in the U.S. mail in a sealed envelope, postage prepaid (via regular mail and return receipt requested), addressed to licensee at his/her address as it appears in the application for a Dispensary License. Transfer of Dispensary Licenses A. License Site Specific A licensee shall not operate a dispensary under the authority of a . Dispensary License at any location other than the address of the dispensary stated in the application for the license unless the licensee obtains an amendment to the Dispensary License from the Planning Director. B. Transfer of a Dispensary License All Dispensary Licenses issued by the County pursuant to . this chapter shall be non-transferable without an amendment to the Dispensary License from the Planning Director making the transferee the licensee. Such an amendment may be obtained only if the proposed transferee files an application with the Planning Department in accordance with all provisions of this chapter accompanied by the required application fee. Such an amendment and transfer shall be granted under the same conditions as the original license. Such transfer shall be granted unless the transferee cannot pass the background check or unless there is clear and convincing evidence that the transferee does not intend to operate in accordance with California law, or in compliance with this ordinance. C. Request for Transfer with a Revocation or Suspension Pending No Dispensary License may . be transferred and no amendment allowing transfer may be issued when the Planning Director has notified the licensee in writing that the license has been or may be suspended or revoked. D. Transfer Without Permission Any attempt to transfer a Dispensary License either directly or . indirectly in violation of this section is void. E. The action of the Planning Director denying a transfer amendment may be appealed to the Planning Commission, and the Planning Commissions decision may be appealed to the Board of Supervisors. Felony Convictions and Background Checks No person who has been convicted of a felony within the past ten (10) years may be engaged in the operation or financing of any dispensary. The Sheriffs Department, at the request of the Planning Director, shall conduct a live scan background check to determine that applicants have not been convicted of such a felony.

Hours of Operation Dispensaries may remain open only between the hours of 8 AM to 8 PM every day, except that if located within 500 feet of a church or other place of worship, they shall close on its primary weekly day of worship. Distance shall be measured along the most direct public road or pedestrian pathway.

Other Operating Standards and Requirements Dispensaries, once licensed, shall meet the following operational and safety standards for the duration of the use: A . Restriction on Membership Membership in a dispensary shall be restricted to qualified patients . and their primary caregivers . B. Restriction on Distribution to Non-Members. Dispensaries shall not sell or distribute marijuana to non-members of the medical marijuana collective or cooperative . C. No Alcohol Permits. Dispensaries shall not hold or maintain a license from theState Department of Alcohol Beverage Control to sell alcoholic beverages . D. Records. Dispensaries shall maintain records of all patients and primary caregivers served to ensure that all persons are legally qualified under California Health and Safety Code Section 11362.5. Membership records shall be held as strictly confidential. E. Securit . Dispensaries shall provide adequate lighting, a burglar alarm system monitored by a y state-licensed monitoring service, and security cameras ensure the safety of persons and to help to protect the premises from theft. The entrance into the dispensary shall be locked at all times with entry strictly controlled. A dispensary shall have a safe on the premises for storage of cash and medical marijuana. F. Odors. Dispensaries should have sufficient ventilation and storage facilities so that no odor is evident outside the facility. G. Amount of Marijuana on Premises. Dispensaries shall have no more than fifteen (15) pounds of trimmed and dried marijuana on the premises at any one time. H. Edibles. Medical marijuana may be provided by a dispensary in an edible form. In addition, any edible produced, provided, or sold at the facility which contains marijuana shall be so identified, as part of the packaging, with a prominent and clearly legible warning advising that the product contains marijuana, the type of marijuana if known, whether the marijuana used is bud, trimmings or leaf, the quantity of marijuana used to produce each individual edible, and that it is to be consumed only with a physician's recommendation. Edibles shall not count toward the dried marijuana weight limit. I. Sale of Live Plants. The sale of medicinal marijuana plants (clones, cuttings or seedlings) not more than eighteen (18) inches high (measured from the top of the dirt or container) is an approved activity. J. Consumption on Site. No member of a dispensing collective or cooperative may consume medical marijuana on the premises except for staff and employees who are medical marijuana patients and have a need to medicate during their working hours at the dispensary. K. Staffing. The premises shall be staffed with at least two people during hours of operation.

L. Staff Training. Dispensary staff shall receive appropriate training for their intended duties to ensure understanding of the rules and procedures regarding dispensing in compliance with state and local law. The dispensary shall take those steps necessary to assure that any persons assigned to provide security are properly trained. M. Not-for-Profit Collective or Cooperative. A dispensary shall operate as a collective or cooperative in accordance with state law and shall not cultivate or distribute medical marijuana for profit. A dispensary may receive compensation for its actual expenses, including reasonable compensation for services provided, or for payment of out-of-pocket expenses incurred in providing those services. However, any such dispensary must pay applicable sales tax on such sales or services and maintain the applicable sellers permit or similar permit from the State Board of Equalization or other applicable agency. N. Visits by officials. The Planning Director may inspect a dispensary to ensure that the amounts of marijuana on site conform to this Article and to state law and to ensure that all performance and operating standards are complied with. O. Access to Tax Records. Each dispensary shall allow the Planning Director to have access to the dispensarys state tax returns previously filed with the state for the purpose of verifying that the dispensary is operating on a not-for-profit basis in accordance with the Attorney Generals Guidelines. Tax returns shall be produced within 14 days after receipt of the Planning Directors written request. P. Minors. Persons under the age of eighteen (18) shall not be allowed on the premises of a dispensary unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or guardian. A dispensary shall not employ or allow to act as a volunteer any person who is not at least eighteen (18) years of age. Severability If any provision of this Chapter, or the application thereof to any person or circumstance, is held invalid, that invalidity shall not affect an other provision or application of this Chapter that can be y given effect without the invalid provision or application; and to this end, the provisions or applications of this Chapter are severable.