HomeMy WebLinkAboutORD NO. 22-1449 (CANNABIS DELIVERY)
Page 1 of 7 22-1449
CITY OF HERMOSA BEACH
ORDINANCE NO. 1449
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH ADDING CHAPTER 5.80 OF THE HERMOSA BEACH MUNICIPAL
CODE RELATING TO CANNABIS DELIVERY IN THE CITY, AMENDING
SECTION 1.10.040 OF THE HERMOSA BEACH MUNICIPAL CODE TO ADD
THAT VIOLATIONS OF THIS CHAPTER ARE SUBJECT TO ADMINISTRATIVE
PENALTY PROCEDURES AND FINDING THE SAME EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
The City Council of the City of Hermosa Beach does hereby ordain as follows:
Section 1. Findings
A. The City currently prohibits all commercial cannabis activity in the City,
including the cannabis delivery.
B. While this amendment will not permit commercial cannabis activity in the
City at static physical locations (i.e., storefronts, warehouses, etc.), the
purpose of this amendment is to allow the delivery of cannabis into the City
by licensed entities that conform to all relevant legal standards and impose
operational requirements to ensure the health, safety, and welfare of the
residents of the City.
C. It is the City’s intent to permit cannabis delivery subject to a use permit to
ensure the safe delivery to City residents subject to standards that eliminate
or minimize to the extent possible any impacts associated with the delivery
of cannabis into the City.
Section 2. Chapter 5.80 (Cannabis delivery) of the Hermosa Beach Municipal
Code is hereby added to read as follows:
A. Notwithstanding any other provision of this Code, this Chapter shall govern and
regulate cannabis delivery in the City. To the extent there are any other provisions
of this code in conflict with this Chapter, this Chapter shall prevail.
B. Cannabis delivery is permitted in the city by operators with physical locations
located outside of the city, subject to the issuance of a cannabis delivery permit
and the requirements of this chapter. No person shall deliver cannabis anywhere
in the City unless a cannabis delivery permit has been obtained in compliance
with this chapter and in compliance with all legal requirements.
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15
Page 2 of 7 22-1449
1. The City Manager shall review any application for a cannabis delivery
permit and associated documents and shall require, if deemed necessary
at the sole discretion of the City Manager, additional information to
complete the application. The City Manager shall only issue a cannabis
delivery permit if all of the required findings are supported by substantial
evidence in the application.
2. An application for a cannabis delivery permit shall be accompanied by
the application fee adopted by resolution of the City Council and shall
comply with all application requirements as determined by the City
Manager and include, at a minimum the following:
(a) The name, mailing address and contact information of the
applicant.
(b) The physical address and assessor’s parcel number(s) of the
property upon which the applicant conducts the commercial cannabis
activity that will be the location where deliveries originate.
(c) Copies of any required State and local license to conduct
commercial cannabis activity. This includes any state or local licenses for
the physical retail location (or non-retail location) that must be located
outside of the city.
(d) If the Applicant is a business entity or any form of entity,
information regarding the entity, including, without limitation, the name
and address of the entity, its legal status, and proof of registration with, or a
certificate of good standing from, the California Secretary of State, as
applicable.
(e) The full name, date of birth, present address and telephone
number for all owners, supervisors, employees, and those with a financial
interest in the applicant that is the subject of the application at the time of
application submittal. In the event an applicant is an entity, each entity
must disclose the owners or those with a financial interest in the entity until
an individual person(s) is/are named.
(f) List of names and a copy of a California driver’s license for any
individual eligible to conduct cannabis delivery in the City at the time of
application.
(g) List of all vehicles (make, model and license plate number) of any
vehicle that eligible to conduct cannabis delivery in the City.
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15
Page 3 of 7 22-1449
(h) Employee educational and training plan to ensure that all
employees are informed and educated to all of the requirements of this
Chapter and applicable state law requirements for cannabis delivery in the
city.
3. The City Manager shall only issue a cannabis delivery permit if all of the
following findings are made based on substantial evidence:
(a) Applicant is licensed by all relevant governmental entities and
has demonstrated a capability to comply with all cannabis laws and
regulations.
(b) Applicant has been truthful and made no material
misrepresentations in its application.
(c) Applicant has paid all application fees and has no outstanding
fines, penalties or other unpaid enforcement obligations of any kind.
(d) Applicant does not have any previous civil, administrative or legal
judgments or history of moral turpitude or other activities of a fraudulent or
felonious nature that would indicate applicant is not suited to operate a
cannabis delivery business in the City in compliance with all applicable laws
and regulations.
(e) Each delivery vehicle shall be equipped with a dual dash camera
system showing the inside of the vehicle as well as a forward facing camera
and shall be turned on at all time the vehicle is in the City making cannabis
deliveries. Video footage shall be retained for a period of at least two (2)
weeks and made available to the City upon request.
Notwithstanding the above, the City reserves the right to reject any or all
applications for a cannabis delivery permit for any reason that the renders
the applicant unfit to operate conduct cannabis delivery in the City. The
city further reserves the right to request and obtain additional information
from any applicant submitting an application.
4. Any cannabis delivery permit holder must comply with the following:
(a) Each cannabis delivery permit holder must comply with all
applicable State and local laws and regulations as amended.
(b) Each cannabis delivery permit holder shall maintain accurate
books and records, detailing the revenues and expenses of the business it
does in the city.
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15
Page 4 of 7 22-1449
(c) Each cannabis delivery permit holder shall maintain a current
register of names and required information for all employees participating
in the delivery of cannabis in the city and all vehicles used for the delivery
of cannabis in the city. In no event shall any employee participate in the
delivery of cannabis in the city or a vehicle be used for the delivery of
cannabis in the city until the information is updated to the permit holder’s
register. Each cannabis delivery permit holder shall provide the City its
current register upon request by the City within forty-eight (48) hours.
(d) Each cannabis delivery permit holder must pay all applicable
federal, state and local taxes as amended from time to time.
(e) Each cannabis delivery permit holder shall provide the City
Manager, and keep current, with the name, telephone number(s) (mobile
preferred, if available) of an owner and or manager to whom can be
reached 24 hours a day.
(f) Cannabis delivery is only permitted in the city between the hours
of 8:00 am to 10:00pm.
(g) Workers Compensation Insurance as required by law. Any notice
of cancellation or non-renewal of all Workers’ Compensation policies must
be received by the City at least thirty (30) days prior to such change. The
insurer shall agree to waive all rights of subrogation against the City, its
officers, agents, employees, and volunteers for losses arising from work
performed by the cannabis delivery permit holder.
(h) Automobile Liability Coverage. Cannabis delivery permit holders
shall maintain automobile liability insurance covering bodily injury and
property damage for all activities of the cannabis delivery permit holder
arising out of or in connection with cannabis delivery in the City, including
coverage for owned, hired, and non-owned vehicles, in an amount of not
less than one million dollars ($1,000,000) combined single limit for each
occurrence
5. Each cannabis delivery permit holder shall maintain accurate books and
records, detailing all of the revenues and expenses of all cannabis delivery
in the city. On no less than an annual basis, or at any time upon reasonable
request of the city, each cannabis delivery permit holder shall file a sworn
statement detailing the number of sales by the cannabis delivery permit
holder during the previous twelve-month period (or shorter period based
upon the timing of the request), provided on a monthly basis. The
statement shall also include gross sales for each month, and all applicable
taxes paid or due to be paid. If, upon written request from the City, each
cannabis delivery permit holder shall make available to the City all books,
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15
Page 5 of 7 22-1449
records, accounts, inventory and access to onsite operations of persons
engaged in cannabis delivery specific to the business, including
examination of both state and federal income tax returns, sales tax returns,
or other evidence documenting the finances pertaining to cannabis
delivery in the City for the purpose of verifying compliance with this Chapter
and any other applicable provision of this Code.
6. An application for renewal of a cannabis delivery permit shall be filed at
least sixty (60) calendar days prior to the expiration date of the current
permit. The renewal application shall contain all the information required
for new applications and the applicant shall pay a renewal application fee
in an amount set by the City Council. An application for renewal of a
cannabis delivery permit shall be rejected by the City Manager if any of
the following exists:
(a) The application is filed less than sixty (60) days before its
expiration.
(b) The cannabis delivery permit is suspended or revoked at the time
of the application.
(c) The cannabis delivery permit has not been in regular and
continuous operation in the four (4) months prior to the renewal
application.
(d) The cannabis delivery permit holder has failed to conform to the
requirements of this Chapter, or of any regulations adopted pursuant to this
Chapter.
(e) The permittee fails or is unable to renew its State of California
license or other applicable local licenses.
(f) If the City or state has determined, based on substantial evidence,
that the permittee is in violation of the requirements of this Chapter, of the
City’s Municipal Code, or of the state rules and regulations, and the City or
state has determined that the violation is grounds for termination or
revocation of the cannabis delivery permit.
If a renewal application is rejected, a person may file a new application
pursuant to this Chapter no sooner than one (1) year from the date of the
rejection.
7. In addition to any regulations adopted by the City Council, the City
Manager is authorized to establish any additional rules, regulations, and
standards governing the issuance, denial, or renewal of cannabis delivery
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15
Page 6 of 7 22-1449
permits, the ongoing operations of a cannabis delivery permit holder and
the City’s oversight, or concerning any other subject determined to be
necessary to carry out the purposes of this Chapter. Regulations shall be
published on the City’s website. Regulations promulgated by the City
Manager shall become effective upon date of publication. A cannabis
delivery permit holder shall be required to comply with all state and local
laws and regulations, including but not limited to any rules, regulations, or
standards adopted by the City Manager or his designee.
8. The person or members of a business entity to whom a cannabis delivery
permit is issued pursuant to this Chapter shall be responsible for all violations
of the laws of the State of California or of the regulations and/or the
ordinances of the city, whether committed by the permittee or any
employee or agent of the permittee, which violations occur in the city
whether or not said violations occur within the permit holder’s presence.
9. In addition to the violation section of this Chapter as well as any other
enforcement mechanism authorized by the Hermosa Beach Municipal
Code or State law, violations of this subsection (C) of this Chapter shall be
subject to suspension or revocation of the cannabis delivery permit.
10. Any decision by the City Manager under this chapter (including, but not
limited to, the initial decision on an application, renewal decision, and a
decision to suspend or revoke a cannabis delivery permit) may be
appealed to the City Council. Appeals must be filed in writing, with the city
clerk’s office no later than fifteen (15) days after the City Manager’s
decision and an appeal fee must be included. The city council shall
conduct a public hearing within sixty (60) days of the date the appeal is
submitted and issue it decision within sixty (60) days of the closing of the
hearing, unless extended at the sole discretion of the city council.
C. Violations and Remedies.
1. Violations of the provisions of this chapter are subject to the
administrative penalty provisions of Chapter 1.10.
Section 3. Section 1.10.040 (Code violations subject to administrative penalty
procedures) of the Hermosa Beach Municipal Code is hereby amended to add
subsection (A)((25) to read as follows:
25. Chapter 5.80, Cannabis delivery.
Section 4. The City Council finds that the adoption of this ordinance is not a
“project” under California Environmental Quality Act (“CEQA”), because the
ordinance will allow for the establishment of cannabis delivery to operate in a
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15
Page 7 of 7 22-1449
similar manner as traditional delivery services which will not cause a direct
physical change in the environment nor a reasonably foreseeable indirect
physical change in the environment (Public Resources Code section 21065.)
Further, the City Council finds that even if this ordinance is found to be a project
under CEQA, the adoption of this ordinance is exempt from environmental review
under pursuant to Section 15061(b)(3) of the CEQA guidelines because it can be
seen with certainty that there is no possibility that the activity in question may have
a significant effect on the environment. The ordinance permits cannabis delivery
in the city which businesses will have impacts similar to delivery services which are
already authorized within the City. Furthermore, the Ordinance contains
operational requirements that prevent any potential impacts on the environment
that may be unique to businesses involving cannabis. Further, there is no possibility
that this Ordinance would create cumulative impacts that are significant and
there are no other significant impacts that could occur as a result of this
Ordinance, and there are no unusual circumstances that would cause any such
significant impacts
Section 5. Pursuant to California Government Code section 36937, this
ordinance shall take effect thirty (30) days after its final passage.
Section 6. The City Clerk is directed to certify the passage and adoption of this
Ordinance; cause it to be entered into the City of Hermosa Beach’s book of
original ordinances; make a note of the passage and adoption in the records of
this meeting; and cause it to be published or posted in accordance with
California law.
PASSED, APPROVED and ADOPTED this 13th day of September, 2022.
___________________________________________________
Mayor Michael Detoy
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
_______________________________ _______________________________
Myra Maravilla Michael Jenkins
City Clerk City Attorney
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15
State of California )
County of Los Angeles ) ss
City of Hermosa Beach )
September 22, 2022
Certification of Council Action
ORDINANCE NO. 22-1449
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH
ADDING CHAPTER 5.80 OF THE HERMOSA BEACH MUNICIPAL CODE
RELATING TO CANNABIS DELIVERY IN THE CITY, AMENDING SECTION
1.10.040 OF THE HERMOSA BEACH MUNICIPAL CODE TO ADD THAT
VIOLATIONS OF THIS CHAPTER ARE SUBJECT TO ADMINISTRATIVE PENALTY
PROCEDURES AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT
I, Myra Maravilla, City Clerk of the City of Hermosa Beach, California, do hereby
certify that the above and foregoing Ordinance No. 22-1449 was duly
approved and adopted by the City Council of said City at its regular meeting thereof
held on the 13th day of September, 2022 and passed by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmembers Armato, Campbell, Massey, and Mayor Pro Tem
Jackson
Mayor Detoy
None
None
________________________________
Myra Maravilla, MPA, CMC
City Clerk
DocuSign Envelope ID: DE38CE7D-CA58-4B49-9604-55F3BA823E15