HomeMy WebLinkAbout2023-10-17; City Council; ; Allowances for Non-Storefront Retail Medicinal Cannabis Delivery Service Businesses Consistent with the Medicinal Cannabis Patients’ Rights to Access ActCA Review ___MK___
Meeting Date: Oct. 17, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Jeff Murphy, Community Development Director
jeff.murphy@carlsbadca.gov, 442-339-2783
Subject: Allowances for Non-Storefront Retail Medicinal Cannabis Delivery Service
Businesses Consistent with the Medicinal Cannabis Patients’ Rights to
Access Act
Districts: All
Recommended Action
Introduce an ordinance amending Chapter 8.90, adding Chapter 8.95 and repealing Section
5.04.160 of the Carlsbad Municipal Code to allow non-storefront retail medicinal cannabis delivery
service businesses consistent with the Medicinal Cannabis Patients’ Right to Access Act, also
referred to as Senate Bill 1186.
Executive Summary
In 2022, the state Legislature passed and Governor Gavin Newsom signed into law Senate Bill
1186, the Medicinal Cannabis Patients’ Right of Access Act. Beginning Jan. 1, 2024, cities are
prohibited from adopting or enforcing any regulation that prohibits or has the effect of prohibiting
the retail sale by delivery of medicinal cannabis. The state law does, however, allow cities to adopt
certain standards to regulate the location and operation of medicinal cannabis delivery service
businesses, as will be discussed further in this staff report.
Consistent with SB 1186, staff are asking the City Council to approve amendments to the Carlsbad
Municipal Code (Exhibits 1 and 2) that will allow the establishment of non-storefront retail
medicinal cannabis delivery service businesses in the city subject to current zoning requirements,
security, public health and safety requirements, licensing requirements, business license taxes and
compliance with restrictions imposed on cannabis businesses by state law and regulations issued
by the California Department of Cannabis Control.
The city’s current prohibition on all other aspects of commercial cannabis activities, such as
cultivation, manufacturing, storing, testing, retail sales, and retail delivery, will be unaffected by
the proposed changes.
Explanation & Analysis
Background
In 1996, voters approved Proposition 215, which legalized the use of medical cannabis in
California. For nearly two decades after the passage of that voter initiative, the state largely left
the regulatory responsibility to local governments. In 2015, a series of state laws known
collectively as the Medical Cannabis Regulation and Safety Act were enacted, providing a statutory
Oct. 17, 2023 Item #4 Page 1 of 50
framework to regulate medicinal cannabis. The law required specified state agencies to regulate
the medicinal cannabis industry, including the issuance of licenses to medicinal cannabis
cultivators, manufacturers, testing laboratories, distributors and dispensaries. Shortly thereafter,
in November 2016, voters approved Proposition 64, referred to as the Adult Use of Marijuana Act,
which legalized the nonmedical use of cannabis. Under Proposition 64, adults 21 years of age or
older can legally grow, possess and use cannabis for nonmedical purposes, with certain
restrictions. While Proposition 64 created a statutory framework to regulate and permit
nonmedical cannabis that mirrored the Medical Cannabis Regulation and Safety Act, there were
differences between the two sets of regulations that caused confusion.
On June 27, 2017, the Governor signed Senate Bill 94, a budget trailer bill1 that became effective
immediately and consolidated state licensing of medicinal and recreational cannabis businesses
into a single regulatory scheme titled the Medicinal and Adult-Use Cannabis Regulation and Safety
Act. A key provision of this law included the ability of local jurisdictions to restrict or prohibit
commercial cannabis activities or impose stricter local standards than those afforded in state
regulations. In accordance with this law, the City of Carlsbad adopted Carlsbad Municipal Code
Chapter 8.90 in 2017, which prohibits all commercial cannabis activity.2
SB 1186 - The Medicinal Cannabis Patients’ Right to Access Act
The Medicinal Cannabis Patients’ Right to Access Act that will become effective Jan. 1, 2024, is
based on the premise that there are “serious barriers” to medicinal cannabis access in California,
and that the state’s decision in 2017 to grant cities local control to ban medicinal cannabis
undermined the voters’ intent when they approved Proposition 215 in 1996. During the state
Legislature’s consideration of SB 1186, the city sent a letter to state Senator Scott Weiner
expressing concern and opposition to the bill’s adoption (Exhibit 3).
The legislation prohibits cities from adopting or enforcing any regulations that prohibit the delivery
of medicinal cannabis within the city to patients or their primary caregivers. The legislation further
prohibits cities from adopting or enforcing any regulations that have the effect of prohibiting the
retail sale by delivery within the city of medicinal cannabis to medicinal cannabis patients or their
primary caregivers in a timely and readily accessible manner, and in types and quantities that are
sufficient to meet demand from medicinal cannabis patients within the city.
This legislation specifically states that a city cannot regulate the following with respect to
medicinal cannabis delivery service businesses:
• Limit the number of businesses authorized to deliver medicinal cannabis in a city
• Limit the operating hours of medicinal cannabis delivery service businesses (beyond state
law limitations)
1 A budget trailer bill makes the statutory changes needed to implement the budget. It is the same as any other bill,
but it takes effect immediately with a majority vote if it contains an appropriation related to the budget bill and is
listed as a trailer bill in the budget bill.
2 “Commercial cannabis activity” is defined in the current version of Carlsbad Municipal Code Section 8.90.020 as “any
cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling,
transportation, distribution, delivery, or sale of cannabis requiring a license from the State under Division 10 of the
California Business and Professions Code, whether or not carried on for profit and including medical cannabis
cooperatives and collectives, except as approved by the U.S. Drug Enforcement Administration or the U.S. Food and
Drug Administration.”
Oct. 17, 2023 Item #4 Page 2 of 50
• Limit the number or frequency of medicinal cannabis sales by delivery in a city
• Limit the types or quantities of medicinal cannabis sold within a city
• Require that a medicinal cannabis delivery service business making deliveries in a city
establish physical premises within the city.
Despite these restrictions, local governments can impose reasonable regulations on medicinal
cannabis delivery service businesses related to the following:
• Zoning requirements that are consistent with SB 1186
• Security or public health and safety requirements
• Licensing requirements
• The imposition, collection and remittance of any applicable state or local taxes upon retail
sales occurring within the local jurisdiction
• Regulations consistent with requirements or restrictions imposed on cannabis businesses
by Division 10 of the California Business and Professions Code or regulations issued under
that division
Additionally, cities may continue to enforce prohibitions on all other aspects of medicinal cannabis
including cultivation, manufacturing, testing and sales. The legislation also does not impact cities’
local control over adult-use (non-medicinal) cannabis businesses. Carlsbad may continue to
enforce its complete prohibition of all aspects of non-medicinal cannabis including cultivation,
delivery, manufacturing, testing and sales.
Proposed local regulations for medicinal cannabis delivery service businesses
Staff from the City Attorney’s Office, the Community Development Department and the Police
Department developed regulations for City Council’s consideration that comply with SB 1186 and
include reasonable restrictions and operational standards to address potential security and public
health and safety concerns.
Medicinal cannabis delivery service businesses defined
A “medicinal cannabis delivery service business” is defined in the proposed ordinance as “a
business or operation, whether for profit or nonprofit, whose premises are closed to the public
and which sells medicinal cannabis and/or medicinal cannabis products exclusively by delivery…”
This definition does not include any allowance for any storefront component whereby customers
can buy or pick up medicinal cannabis products at the physical premises of the establishment.
Zoning and building standards
The following summarizes the zoning regulations and building standards that the ordinance will
apply to medicinal cannabis delivery service businesses, all of which will be verified during the
medicinal cannabis delivery service license application process (which is separate from a business
license):
• Delivery businesses shall be considered “storage, wholesale, and distribution facilities” as
listed in Carlsbad Municipal Code Title 21 - Zoning, which are permitted uses in the Planned
Industrial (P-M) Zone. Since storage, wholesale and distribution facilities is not a listed use
in any other zone, they are prohibited in all zones except the P-M Zone.
Oct. 17, 2023 Item #4 Page 3 of 50
• Delivery businesses must be located at least 1,000 feet from the following locations and
uses, which are considered to be “sensitive receptor” locations:
o Residential zones
o Public or private schools
o Daycare centers
o Churches
o Public parks
o Youth centers
o Any other medicinal cannabis delivery service business
(All measurements shall be taken from the closest property line of the delivery business to
the closest property line of the sensitive receptor location. Exhibit 4 includes a map of the
eligible existing properties zoned P-M that currently meet the separation requirements
listed above.)
• The delivery business structure(s) may not exceed 3,000 square feet in size (cumulative
total).
• Odor control devices and techniques shall be incorporated in all delivery businesses to
ensure that odors from cannabis are not detectable outside the property boundaries.
Operating standards
The following summarizes the more significant operating standards affecting medicinal cannabis
delivery service businesses that are proposed in the new ordinance:
• No markings or indications of cannabis or cannabis products shall be visible from the public
right-of-way and/or exterior of the structure(s) or vehicles associated with the medicinal
cannabis delivery service business.
• A physician is prohibited from evaluating patients for the issuance of a medicinal cannabis
prescription or card at a delivery business location.
• On-site retail sales and on-site customer pickup of medicinal cannabis is prohibited.
• Loitering or consumption of alcohol/cannabis is prohibited within 200 feet of the delivery
business location.
• No outdoor storage of cannabis or cannabis products is permitted at any time. All aspects
of the delivery business must be conducted within an enclosed building structure.
• All cannabis deliveries shall only be made to the requestor’s residence – deliveries to
schools, public spaces, places of employment, businesses, etc. are prohibited.
• Medicinal cannabis may be delivered only to patients holding a valid medicinal cannabis
prescription or card.
• The medicinal cannabis delivery service business owner and property owner must pass a
criminal background check prior to issuance of a medicinal cannabis delivery service
license. Additionally, the business owner and property owner may not be convicted of any
crimes listed in California Business and Professions Code Section 19323(b)(5) while
operating a permitted medicinal cannabis delivery service business, or the license will be
revoked.
Oct. 17, 2023 Item #4 Page 4 of 50
Licensing and enforcement standards
The following summarizes the more significant licensing and enforcement requirements affecting
medicinal cannabis delivery service businesses that are proposed in the new ordinance:
• A medicinal cannabis delivery service license, issued by the Police Chief or designee, is valid
for 12 months from the date of approval. A new license must be secured annually to
continue operations (no renewals).
• Each delivery business must have a valid state license (Type 9-Non-storefront Retailer)
under Business and Professions Code Section 26000.
• A local medicinal cannabis delivery service license can be denied, suspended or revoked for
failing to comply with relevant state and local codes in addition to other historical and
performance indicators outlined in the ordinance (Exhibit 1, Section 8.95.060(E)).
Business license code amendment
The city’s business license ordinance, located in Carlsbad Municipal Code Chapter 5.04 and
Chapter 5.08, is a tax ordinance rather than a regulatory ordinance. Section 5.04.100 provides that
a business license is not a permit or license to conduct a business in an unlawful manner or as a
nuisance, which overlaps with Section 5.04.160, providing that businesses that cannot be carried
out without violating state or federal law are prohibited within the city.
California and federal laws regulating cannabis are inconsistent in that California has legalized the
use, production, delivery and sale of medicinal cannabis, while federal law prohibits the
cultivation, possession, distribution and sale of cannabis. However, federal law does not preempt
California law. Since 2014, federal law, as interpreted by United States v. McIntosh (U.S. 9th Circuit
Court of Appeals, 2016), has prohibited federal prosecutors from spending funds to prosecute
individuals who engage in conduct permitted by California’s medicinal cannabis laws and are in full
compliance with those laws.
For these reasons, repealing Carlsbad Municipal Code Section 5.04.160 is necessary to avoid
confusion over inconsistencies between California and federal cannabis laws. Repealing Section
5.04.160 does not impact the city’s ability to prohibit any business from operating in an unlawful
manner or as a nuisance and is consistent with the business license ordinance being a tax
ordinance rather than a regulatory ordinance. It is also consistent with California’s legalization of
medicinal cannabis and the requirement that the city allow for non-storefront retail delivery of
medicinal cannabis, as well as with federal law precluding the prosecution of individuals who
comply with California’s medicinal cannabis laws.
Fiscal Analysis
The proposed ordinance includes language authorizing the City Council to impose by resolution a
nonrefundable fee to reimburse the city for its reasonable and necessary costs in receiving,
processing, reviewing, and inspecting applications, and reviewing renewal requests or appeals for
a medicinal cannabis delivery service license. This fee would be in addition to the business license
fees and taxes required by Carlsbad Municipal Code Chapter 5.08
Because the medicinal cannabis delivery service license is a new program with an unknown
volume of applicants, staff are uncertain of the amount of city time and costs that will be required
to process such licenses. Staff will monitor license activity over the next 12 to 18 months and if
Oct. 17, 2023 Item #4 Page 5 of 50
found justified, propose the City Council adopt a license fee consistent with City Council Policy
Statement No. 95 (cost recovery policy for fees and charges for services).
Next Steps
Following introduction of the ordinance, the item will be scheduled at the City Council’s next
meeting for adoption. The ordinance will become effective Jan. 1, 2024, to correspond with the
effective date of SB 1186.
Once it is adopted, city staff will send a copy of the ordinance to the California Department of
Cannabis Control for its records. Additionally, staff will finalize the medicinal cannabis delivery
service license application form, supplemental application package and indemnity and consent
agreement, which will be posted on the Community Development Department webpage for public
use. The first two draft forms are included as Exhibits 5 and 6 for informational purposes only.
Environmental Evaluation
The proposed ordinance is exempt from further environmental review under the California
Environmental Quality Act in accordance with CEQA Guidelines Section 15268 (statutory
exemption) and 15061(b)(3) (common sense exemption). A notice of exemption was prepared for
the project in accordance with the CEQA Guidelines sections 15061 and 15062. (This notice is
attached to this staff report as Exhibit 7 and incorporated herein by this reference).
A notice of intended decision regarding the environmental determination was advertised on July
31, 2023, and posted on the city’s website. The notice included a general description of the
project, the proposed environmental findings, and a general explanation of the matter to be
considered. The findings and determination contained in that notice are to be declared as final on
the date of the noticed decision, unless appealed as provided by the procedures commencing in
Chapter 21.54 (Procedures, Hearings, Notices, and Fees) of the city’s Zoning Ordinance.
The city received no comment letters from the public regarding the prospective environmental
determination. Since no appeal was filed, the city planner’s written decision is final and the CEQA
determination is not within the City Council’s purview. The notice of exemption demonstrates that
the project qualifies for the exemption: None of the exceptions to categorical exemptions listed in
the CEQA Guidelines section 15300.2 or Chapter 19.04 of the Carlsbad Municipal Code have been
triggered, and no substantial evidence has been submitted to the city that would support a finding
that the exemption requirements would not be satisfied. With the appropriate environmental
clearances in place, all the city’s procedural requirements and relevant aspects of CEQA have been
satisfied.
Exhibits
1. Ordinance amending Chapter 8.95, adding Chapter 8.90 and repealing Section 5.04.160
2. Ordinance showing proposed amendments
3. City opposition letter to SB 1186
4. Eligible sites map
5. Medicinal cannabis delivery service license application
6. Medicinal cannabis delivery service license supplemental package
7. Notice of exemption
Oct. 17, 2023 Item #4 Page 6 of 50
ORDINANCE NO. CS-460
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AMENDING CHAPTER 8.90, ADDING CHAPTER 8.95, AND
REPEALING SECTION 5.04.160 OF THE CARLSBAD MUNICIPAL CODE TO
ALLOW NON-STOREFRONT RETAIL MEDICINAL CANNABIS DELIVERY
SERVICE BUSINESSES CONSISTENT WITH THE MEDICINAL CANNABIS
PATIENTS' RIGHT TO ACCESS ACT, ALSO REFERRED TO AS SENATE BILL 1186
WHEREAS Chapter 26 (commencing with Section 26320) to Division 10 of the Business and
Professions Code, referred to as the Medicinal Cannabis Patients' Right to Access Act ("MCPRAA"),
prohibits cities from, on or after January 1, 2024, adopting or enforcing any regulation that prohibits
the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis
patients or their primary caregivers; and
WHEREAS, the MCPRAA further prohibits cities from adopting or enforcing any regulations on
or after Jan. 1, 2024, that have the effect of prohibiting the retail sale by delivery within the local
jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers in a timely
and readily accessible manner and in types and quantities that are sufficient to meet demand from
medicinal cannabis patients within the jurisdiction; and
WHEREAS Sections 5 and 7 of Article XI of the California Constitution, and the provisions of the
Medical Cannabis Regulation and Safety Act ("MCRSA") as amended by the Medical and Adult-Use
Cannabis Regulation and Safety Act ("MAUCRSA"), authorize cities to adopt ordinances that establish
standards, requirements, and regulations for local licenses and permits for cannabis and cannabis
related activity. Any standards, requirements, and regulations regarding health and safety, security,
and worker protections established by the State of California, or any of its departments or divisions,
shall be the minimum standards applicable to medicinal cannabis-related activity in a city; and
WHEREAS Chapters 8.90 and 8.95 of the Carlsbad Municipal Code are intended to prohibit
commercial cannabis activity in the City of Carlsbad, with the exception of medicinal cannabis deliveries
pursuant to California Code of Regulations, Title 16, Division 42, Section 5416, and licensed medicinal
cannabis delivery service businesses pursuant to Chapter 8.95; and
WHEREAS Chapter 8.95 of the Carlsbad Municipal Code imposes a regulatory licensing scheme
and reasonable regulations consistent with the MCRSA to protect the city's neighborhoods, residents,
Exhibit 1
Oct. 17, 2023 Item #4 Page 7 of 50
and businesses from negative public safety and aesthetic impacts associated with the transporting,
delivery, and distribution of medicinal cannabis and medicinal cannabis products; and
WHEREAS, the city planner studied the proposed amendments to the Carlsbad Municipal Code
and performed the necessary investigations to determine if the project qualified for an exemption in
accordance with the California Environmental Quality Act, (CEQA, Public Resources Code section 21000
et. seq.), and its implementing regulations (the CEQA Guidelines, Article 14 of the California Code of
Regulations section 15000 et. seq.). After consideration of all evidence presented and studies and
investigations made by the city planner, the city planner determined that the proposed code
amendments are exempt from further environmental review in accordance with Article 14 of the
California Code of Regulations, Sections 15061 (common sense exemption) and 15268 (Statutory
Exemptions); and
WHEREAS, on July 31, 2023, the city distributed a notice of intended decision to adopt the
exemptions. The notice was circulated for a 10-day period, which began on Aug. 1, 2023, and ended on
Aug. 10, 2023. The city did not receive any comment letters on the CEQA findings and determinations.
The effective date and order of the city planner's CEQA determination was July 31, 2023. No further
CEQA environmental analysis is required and all aspects of CEQA have been satisfied; and
WHEREAS the city's business license ordinance, located in Carlsbad Municipal Code Chapters
5.04 and 5.08, is a tax ordinance rather than a regulatory ordinance; and
WHEREAS Carlsbad Municipal Code Section 5.04.100 provides that a business license is not a
permit or license to conduct a business in an unlawful manner or as a nuisance; and
WHEREAS Carlsbad Municipal Code Section 5.04.100 overlaps Carlsbad Municipal Code Section
5.04.160, which provides that businesses that cannot be carried out without violating state or federal
law are prohibited within the city; and
WHEREAS California has legalized the use, production, and sale of medicinal cannabis; and
WHEREAS federal law prohibits the cultivation, possession, distribution and sale of cannabis;
and
Oct. 17, 2023 Item #4 Page 8 of 50
WHEREAS, California and federal laws regulating cannabis are inconsistent; however, federal
law does not preempt California law; and
WHEREAS, since 2014, federal law, as interpreted by United States v. McIntosh (9th Cir. 2016)
833 F.3d 1163, 1177, has prohibited federal prosecutors from spending funds to prosecute individuals
who engage in conduct permitted by California's medicinal cannabis laws and are in full compliance
with those laws; and
WHEREAS, repealing Carlsbad Municipal Code Section 5.04.160 is necessary to avoid confusion
over inconsistencies in California and federal cannabis laws; and
WHEREAS, repealing Carlsbad Municipal Code Section 5.04.160 does not allow any business to
operate in an unlawful manner or as a nuisance, is consistent with the business license ordinance's
design as a tax ordinance rather than a regulatory ordinance, is consistent with California's legalization
of medicinal cannabis and the requirement that the city allow for non-storefront retail delivery of
medicinal cannabis, and is consistent with federal law precluding the prosecution of individuals who
comply with California's medicinal cannabis laws.
NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains as follows that:
SECTION I The above recitations are true and correct.
SECTION II That Carlsbad Municipal Code Title 5, Chapter 5.04 is amended to repeal Section
5.04.160, in its entirety.
SECTION Ill That Carlsbad Municipal Code Title 8, Chapter 8.90, Section 8.90.010 is amended
to read as follows:
8.90.010 Purpose.
This chapter is declarative of existing law. The Carlsbad Municipal Code, Title 21 (Zoning), only allows
land uses permitted by the code. No provision of the Carlsbad Municipal Code allows any cannabis
operation or land use of any kind within any zone, with the exception of medicinal cannabis deliveries
pursuant to California Code of Regulations, Title 16, Division 42, Section 5416, and licensed medicinal
cannabis delivery service businesses pursuant to Chapter 8.95 of this code. The purpose and intent of
this chapter is to clarify the intent of the Carlsbad Municipal Code to prevent the cultivation, delivery,
distribution, and sale of cannabis within Carlsbad city limits to the fullest extent of the law. Commercial
cannabis activity has judicially recognized adverse secondary effects on the community, including, but
not limited to, increases in crime in the vicinity of or as a result of the commercial cannabis activity;
increases of fraud in obtaining or using state-issued identification cards and licenses; interference with
Oct. 17, 2023 Item #4 Page 9 of 50
residential property owners' enjoyment of their properties when such properties are located in the
vicinity of commercial cannabis activity as a result of increases in crime, litter, noise, and vandalism;
and the deterioration of neighborhoods. Prohibition of commercial cannabis activity is necessary to
prevent these adverse secondary effects and the blighting or degradation of the neighborhoods in the
vicinity of commercial cannabis activity, while at the same time protecting the rights of those
individuals who desire to use cannabis within a private residence as authorized under the Adult Use of
Marijuana Act.
Further, it is the intent of this chapter to limit the demands on police and other city resources and allow
time for the state to establish and implement its regulatory and licensing programs under the Medical
Cannabis Regulation and Safety Act of 2015, the Adult Use of Marijuana Act of 2016, and the Medicinal
and Adult-Use Cannabis Regulation and Safety Act of 2017.
This chapter is not intended to conflict with federal or state law. The city council intends that this
chapter be interpreted to be compatible with federal and state law. To the extent that this chapter may
be deemed to conflict with any provision of state law, the city council has determined that the subject
of the conflict is a municipal affair.
SECTION IV That Carlsbad Municipal Code Title 8, Chapter 8.90, Section 8.90.020 is amended
to read as follows:
8.90.020 Definitions.
For the purposes of this chapter and Chapter 8.95 of this code, the following definitions apply:
"Applicant" means a person or entity who has submitted an application for a medicinal cannabis
delivery service license under Chapter 8.95 of this code.
"Business owner" or "business ownership" means any of the following: (1) A person with an aggregate
ownership interest of twenty percent or more in the medicinal cannabis delivery service business,
unless the interest is solely a security, lien, or encumbrance; (2) the chief executive officer of a
nonprofit or other entity applying for, or holding, such license; (3) a member of the board of
directors of a nonprofit applying for, or holding, such license; or (4) an individual participating in
the direction, control, or management of the person applying for, or holding, such license.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis
ruderalis, whether growing or not; the seeds of the plant; the resin extracted from any part of the
plant, whether crude or purified; every compound, manufacture, salt, derivative, mixture,
concentrate, or preparation of the plant, its seeds, or resin; and edible or topical products
containing any of the above. "Cannabis" does not include industrial hemp, as defined in California
Health and Safety Code Section 11018.5.
"Cannabis products" has the same meaning as in Section 26001 of the California Business and
Professions Code.
"Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of
the California Health and Safety Code.
"Commercial cannabis activity" means any cultivation, possession, manufacture, distribution,
processing, storing, laboratory testing, packaging, labeling, transportation, distribution, delivery,
or sale of cannabis requiring a license from the State under Division 10 of the California Business
and Professions Code, whether or not carried on for profit and including medical cannabis
cooperatives and collectives, except as approved by the U.S. Drug Enforcement Administration or
the U.S. Food and Drug Administration.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or
trimming of cannabis.
Oct. 17, 2023 Item #4 Page 10 of 50
"Delivery" means the transfer of cannabis, including the use of any technology platform to arrange for
or facilitate the transfer of cannabis by any business, cooperative, or collective, whether or not
carried on for profit, to or from any location within the city of Carlsbad.
"Delivery personnel" means persons employed by a state and locally licensed cannabis business who
deliver cannabis and cannabis products from the business premises to customers, or in the case
of medicinal cannabis to qualified patients or caregivers, at a physical address location.
"Distribution" means the procurement, sale, and transport of cannabis or cannabis products between
entities licensed pursuant to the MAUCRSA and any subsequent State of California legislation
regarding the same.
"Indoors" means a code compliant space within a building, greenhouse, or other structure which is fully
enclosed, with a complete roof enclosure supported by connecting walls extending from the
ground to the roof that is secured against unauthorized entry and accessible only through one or
more locking doors.
"MAUCRSA" means the Medical and Adult Use Cannabis Regulation and Safety Act or Senate Bill 94,
signed into state law in 2017.
"Medicinal cannabis" or "medicinal cannabis product" means medicinal cannabis or medicinal cannabis
products, as those terms are defined in Section 26001 of the California Business and Professions
Code. Medicinal cannabis does not include industrial hemp as defined by Section 81000 of the
California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.
This definition does not include cannabis accessories, branded merchandise of the licensee, or
promotional materials, which are prohibited from delivery within the city of Carlsbad by medicinal
cannabis delivery service businesses.
"Medicinal cannabis activity" means cultivation, manufacture, processing, laboratory testing,
transporting, delivery, distribution, or sale of medicinal cannabis or a medicinal cannabis product,
within the meaning of California Business and Professions Code Section 19300 et seq.
"Medicinal cannabis delivery service business" means a business or operation, whether for profit or
nonprofit, whose premises are closed to the public and which sells medicinal cannabis and/or
medicinal cannabis products exclusively by delivery, which requires a state license (Type 9-Non
storefront Retailer) under California Business and Professions Code Section 26000 et seq. and
which requires a medicinal cannabis delivery service license issued by the city of Carlsbad to legally
operate. This definition does not include any storefront component whereby customers purchase
or pick up medicinal cannabis or medicinal cannabis products at the physical premises of a retail
establishment.
"Medicinal cannabis delivery service license" means a city of Carlsbad regulatory license issued
pursuant to Chapter 8.95 of this code to a medicinal cannabis delivery service business.
"Medicinal cannabis delivery service vehicle" means a vehicle used by a medicinal cannabis delivery
service business to deliver medicinal cannabis or medicinal cannabis products. A medicinal
cannabis delivery service vehicle must comply with all requirements of Chapter 8.95 of this code
and California Code of Regulations, Title 4, Division 19, to legally operate.
"Person with an identification card" means a qualified patient, caregiver, or primary caregiver who
possesses a valid identification card as described in California Health and Safety Code Section
11362.7.
"Physical address location" means a real property structure from where a medicinal cannabis delivery
service business conducts its operations. This location may be one of several business locations
and does not need to be the primary business location or headquarters.
Oct. 17, 2023 Item #4 Page 11 of 50
"Private residence" means a house, an apartment unit, a mobile home, or other similar dwelling unit.
"Property owner" or "property ownership" means the individual or entity who is the record owner of
the property or premises where a medicinal cannabis delivery service business may be located or
is proposed to be located.
"Public park" means an area created, established, designated, or maintained by a special district,
county, the state, or the federal government for public play, recreation, enjoyment, or for the
protection of natural resources and features at the site.
"Qualified patient" has the same meaning as that term is defined in Section 11362.7 of the California
Health and Safety Code, a person who possesses a physician's recommendation that complies
with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the California
Business and Professions Code, or a primary caregiver for a qualified patient.
"State license" means a permit or license issued by the State of California, or one of its departments or
divisions, under MAUCRSA to engage in medicinal cannabis activity.
"Transport" means the transfer of medicinal cannabis or medicinal cannabis products from the licensed
business location of one licensee to the licensed business location of another licensee, for the
purpose of conducting medicinal cannabis activity authorized by the MAUCRSA.
"Transporter" means a person authorized to transport medicinal cannabis or medicinal cannabis
products in amounts authorized by the State of California, or by one of its departments or divisions
under the MAUCRSA.
"Youth center" has the same meaning as that term is defined in California Health and Safety Code
Section 11353.1.
SECTION V
to read as follows:
That Carlsbad Municipal Code Title 8, Chapter 8.90, Section 8.90.030 is amended
8.90.030 Prohibited activities.
A.Commercial cannabis activity is prohibited within the city of Carlsbad. No person shall engage in
any commercial cannabis activity. No permit, license, or other authorization shall be issued for any
commercial cannabis activity. This prohibition does not apply to licensed medicinal cannabis
delivery service businesses pursuant to Chapter 8.95 of this code, cannabis delivery businesses
pursuant to California Code of Regulations, Title 16, Division 42, Section 5416, and the carriage of
cannabis on public roads in the city of Carlsbad to the limited extent required by Sections 26080(b)
and 26090(e) of the California Business and Professions Code.
B.Cultivation of cannabis is prohibited, except indoors at a private residence as authorized by
Section 11362.2(a) of the California Health and Safety Code. Cannabis grown indoors shall be
completely screened from view from public places and neighboring properties. Nothing in this
chapter is intended to, nor shall it be construed to, preclude any owner of real property from
limiting or prohibiting cannabis cultivation by its tenants.
C.No person shall smoke or ingest cannabis in any public place.
SECTION VI That Carlsbad Municipal Code Title 8 is amended to add Chapter 8.95 to read as
follows:
Oct. 17, 2023 Item #4 Page 12 of 50
Chapter 8.95
MEDICINAL CANNABIS DELIVERY SERVICE BUSINESSES
Sections:
8.95.010
8.95.020
8.95.030
8.95.040
8.95.050
8.95.060
8.95.070
8.95.080
8.95.090
8.95.100
Purpose and intent.
Definitions.
License required.
Fees.
Operational standards.
Decision on the application; license suspension and revocation.
Violations, inspections, and enforcement.
Appeals.
Limitations of city's liability.
Severability.
8.95.010 Purpose and intent.
The purpose and intent of this chapter is to implement the provisions of Chapter 26 (commencing with
Section 26320) to Division 10 of the California Business and Professions Code, referred to as the
Medicinal Cannabis Patients' Right to Access Act, which, as of January 1, 2024, prohibits a city from
adopting or enforcing any regulations that prohibit or have the effect of prohibiting the delivery of
medicinal cannabis to patients or their primary caregivers by licensed medicinal cannabis delivery
service businesses in a timely and readily accessible manner. This chapter also imposes a regulatory
licensing scheme and reasonable regulations to protect the city's neighborhoods, residents, and
businesses from negative impacts associated with the transporting, delivery, and distribution of
medicinal cannabis and medicinal cannabis products.
8.95.020 Definitions.
All definitions in Chapter 8.90 of this code also apply to this chapter.
8.95.030 License required.
A.No person shall engage in or conduct any medicinal cannabis delivery service business within the
city without an approved medicinal cannabis delivery service license under this chapter.
B.A separate medicinal cannabis delivery service license shall be required for each physical address
location within the city.
C.An application for a medicinal cannabis delivery service license shall be on forms provided by the
Community Development Department and/or the chief of police or designee, which require all
information, permits, licenses, criminal background check results, and other approvals necessary
to verify compliance with this chapter and all applicable laws. The chief of police or designee
reserves the right to request and obtain additional information from any business owner and
property owner submitting a medicinal cannabis delivery service license application to show
compliance with relevant codes and regulations.
D.The business owner and the property owner, if different, shall sign the medicinal cannabis delivery
service license application form.
8.95.040 Fees.
The city council may impose by resolution a nonrefundable fee to reimburse the city for its reasonable
and necessary costs in receiving, processing, reviewing, and inspecting applications and appeals for a
medicinal cannabis delivery service license. This fee shall be in addition to the business license fees and
taxes required by this chapter and Chapter 5.08 of this code.
Oct. 17, 2023 Item #4 Page 13 of 50
8.95.050 Operational standards.
In addition to all applicable state and local codes and regulations, medicinal cannabis delivery service
businesses shall be subject to the following standards. The license application shall specify evidence
required to demonstrate that the applicant meets these standards prior to approval of the medicinal
cannabis delivery service license.
A.Structure and use standards
1.Medicinal cannabis delivery service businesses shall be allowed in zones listed in Title 21 that
expressly authorize "storage, wholesale, and distribution facilities" as a permitted use.
2.Medicinal cannabis delivery service businesses shall be located at least 1,000 feet from the
following sensitive receptors. All measurements shall be taken from the closest property line
of the medicinal cannabis delivery service business to the closest property line of the
sensitive receptor.
a.Residential zones or private residences
b.Public or private schools
c.Daycare centers
d.Churches
e.Public parks
f.Youth centers
g.Any other medicinal cannabis delivery service business
3.The cumulative size of all structures associated with a medicinal cannabis delivery service
business shall not exceed 3,000 square feet.
4.All medicinal cannabis or medicinal cannabis products shall be stored in an enclosed
permanent structure. Outdoor storage of medicinal cannabis or medicinal cannabis products
is prohibited.
5.No markings or indications of cannabis or cannabis products shall be visible from the public
right-of-way and/or exterior of the structure(s) associated with the medicinal cannabis
delivery service business.
B.Site operations standards.
l.No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages
or cannabis at or within 200 feet of the physical address location.
2.There shall not be a physician located in or near the physical address location at any time for
the purpose of evaluating patients for the issuance of a medicinal cannabis prescription or
card.
3.Odor control devices and techniques shall be incorporated and maintained in all delivery
businesses to ensure that odors from cannabis are not detectable off-site.
4.All cannabis and cannabis products sold or distributed in the city shall be cultivated,
manufactured, and transported by licensed facilities that maintain operations in full
conformance with state and local regulations.
5.Display of licenses. The original copy of a medicinal cannabis delivery service license issued
by the city pursuant to this chapter, along with the medicinal cannabis delivery business's
state cannabis license and city-issued business license, shall be readily available upon request
by the chief of police or designee and not visible to the public.
6.Recordkeeping requirements.
Oct. 17, 2023 Item #4 Page 14 of 50
a.Medicinal cannabis delivery service businesses shall comply with all prov1s1ons of
Chapters 5.04 and 5.08 of this code relating to business license taxes, recordkeeping,
and auditing.
b.Reporting and Tracking of Product and of Gross Sales. Pursuant to California Code of
Regulations, Title 16, Division 42, Section 5048, all medicinal cannabis delivery service
businesses shall use a track-and-trace system to track and report on all aspects of the
medicinal cannabis delivery service business, including, but not limited to such matters
as cannabis tracking, inventory data, and gross sales (by weight and by sale). The system
must have the capability to produce historical transactional data relevant to the city of
Carlsbad for review by the chief of police or designee.
c.In accordance with California Code of Regulations, Title 16, Division 42, Section 5002, all
medicinal cannabis delivery service businesses shall maintain a current register of the
names and contact information (including the address and telephone number) of
anyone owning or holding an interest in the medicinal cannabis delivery service business
and all officers, managers, employees, agents, and volunteers currently employed or
otherwise engaged by the medicinal cannabis delivery service business. The register
required by this paragraph shall be provided to the chief of police or designee(s) upon a
reasonable request.
d.All medicinal cannabis delivery service businesses shall maintain a record of all persons,
qualified patients, collectives, and primary caregivers served by the business for a period
of no less than four years.
e.All medicinal cannabis delivery service businesses shall maintain records of their
inventory acquired, including the name and address of each supplier, the date of
acquisition and the quantity acquired from each supplier, and the location of the
cultivation of the supplier, and shall maintain a copy of the supplier's state license to
cultivate (if required) for a period of no less than four years.
f.Subject to any restrictions under state or federal law, all medicinal cannabis delivery
service businesses shall allow the chief of police or designee to have access to the
business's books, records, and accounts, together with any other data or documents,
for a period of no less than four years for the purpose of conducting an audit or
examination. Books, records, accounts, and any and all relevant data or documents must
be produced no later than 24 hours after receipt of the city's request, unless otherwise
stipulated by the city.
7.Security measures. Medicinal cannabis delivery service businesses shall implement security
measures that comply with all state law requirements, that deter and prevent the
unauthorized entrance into areas containing medicinal cannabis or medicinal cannabis
products, and that deter and prevent the theft of such products. These security measures
include, but are not limited to the following, to the satisfaction of the chief of police or
designee:
a.Ensure that all medicinal cannabis and medicinal cannabis products are kept in a manner
to prevent diversion, theft, and loss.
b.Install and maintain surveillance cameras that comply with California Code of
Regulations, Title 16, Division 42, Section 5044. The medicinal cannabis delivery service
business shall be responsible for ensuring that the security surveillance camera's
Oct. 17, 2023 Item #4 Page 15 of 50
footage is accessible by the city manager or designee and the city's police department
upon request, and that it is compatible with the city's software and hardware.
c.Ensure that all entrances and exits of the medicinal cannabis delivery service business
are locked at all times, with entry strictly controlled.
d.Make available a designated security representative/liaison who can meet with the chief
of police or designee regarding any security related measures and/or operational issues.
8.The business owner and property owner may not be convicted of any crimes listed in
California Business and Professions Code Section 19323{b}(S) while operating a medicinal
cannabis delivery service business. A conviction within the meaning of this section means a
plea or verdict of guilty or a conviction or diversion following a plea of nolo contendere.
9.Reporting legal matters. The business owner and property owner shall notify the chief of
police or designee in writing of the following legal matters pending against them, in their
individual capacity or otherwise, within 48 hours of the date of conviction, judgment, order,
or final decision:
a.Criminal conviction. The written notification to the city shall include the date of the
conviction, the court docket number, the name of the court in which the conviction was
entered, and the specific offense(s) resulting in a conviction(s).
b.Civil penalty or judgment. The written notification shall include the date of verdict, entry
of judgment, or order, the court docket number, the name of the court in which the
matter was adjudicated, and a description of the civil penalty or judgment rendered.
c.Administrative order. The written notification shall include the date of the order, the
name of the agency issuing the order, and a description of the administrative penalty or
decision rendered against the business owner or property owner.
d.Revocation or suspension of a state or local license, permit, or other authorization. The
written notification shall include the name of the local agency involved, a written
explanation of the proceeding or enforcement action, and the specific violation(s) that
led to the revocation or suspension.
C.Delivery operations standards.
1.In accordance with California Code of Regulations, Title 4, Division 19, Section 15417{a), all
medicinal cannabis delivery service vehicles shall not have any marking or other indications
on the exterior of the vehicle that may indicate that the delivery personnel is carrying
cannabis goods for delivery.
2.All deliveries of medicinal cannabis and medicinal cannabis products must be to a physical
address location other than the cannabis delivery business's physical address location.
3.All deliveries of medicinal cannabis and medicinal cannabis products shall only be made to
the customer's residence. Deliveries of medicinal cannabis and medicinal cannabis products
are prohibited to schools, day care centers, youth centers, public parks and open space,
public buildings, and commercial establishments, including but not limited to restaurants and
places of work, whether or not members of the public are present.
4.Medicinal cannabis and medicinal cannabis products may be transported by one medicinal
cannabis delivery service business's physical address location to another medicinal cannabis
delivery service business's physical address location if the state retail licenses for both
locations are held by the same licensee.
5.Deliveries of medicinal cannabis and medicinal cannabis products are only permitted during
the hours specified under state law.
Oct. 17, 2023 Item #4 Page 16 of 50
6.Only direct employees of a medicinal cannabis delivery service business may serve as delivery
personnel. An independent contractor, third-party courier service, or an individual employed
through a staffing agency does not qualify as a direct employee.
7.Before dispensing any medicinal cannabis or medicinal cannabis products to persons
requesting delivery, delivery personnel must verify that the requester and recipient is 18
years of age or older and is a person with an identification card, as defined in this chapter.
Any person who causes or permits a delivery of medicinal cannabis or medicinal cannabis
products within the city of Carlsbad to be made to a person other than a person with an
identification card may be charged with a violation of this section.
D.Additional standards and regulations. The city manager or designee may adopt any necessary
rules, regulations, and processes governing medicinal cannabis delivery service licenses and the
operations of medicinal cannabis delivery service businesses.
8.95.060 Decision on the application; license suspension and revocation.
A.The chief of police or designee is authorized to approve, deny, suspend, or revoke a medicinal
cannabis delivery service license.
B.Following receipt of a complete medicinal cannabis delivery service license application, the chief
of police or designee shall notify the applicant of the decision that approves the license,
conditionally approves the license, or denies the license with the reasons for denial stated.
C.A medicinal cannabis delivery service license issued pursuant to this chapter shall expire 12
months after the date of its issuance, after which time a new license application must be
submitted to continue the medicinal cannabis delivery service business. License renewals are not
permitted.
D.License approval and modifications.
1.A medicinal cannabis delivery service license shall not be issued unless the property owner(s)
and business owner(s) successfully pass a criminal background check verifying that they have
not been convicted of any crimes listed in California Business and Professions Code Section
19323(b)(S). The criminal background check shall be conducted by the chief of police or
designee. A conviction within the meaning of this section means a plea or verdict of guilty or
a conviction or diversion following a plea of nolo contendere.
2.The chief of police or designee is authorized to impose additional conditions on a medicinal
cannabis delivery service license as necessary to ensure compliance with state or local laws
and regulations or to preserve the public health, safety, or welfare. Any additional license
conditions will be provided in writing to the applicant by the chief of police or designee and
may be appealed in accordance with Section 8.95.080 of this chapter.
3.Modifications or changes to an approved medicinal cannabis delivery service license,
including but not limited to modifications to the physical address location or premises,
business ownership, or property ownership, require approval of a new medicinal cannabis
delivery service license pursuant to this chapter prior to the modifications or changes taking
effect. Any such modifications or changes made without approval of a new license constitutes
a violation of this chapter.
E.License denial. The chief of police or designee may deny a medicinal cannabis delivery service
license for any of the following reasons:
l.Any of the reasons provided in California Business and Professions Code Section 26057(b ).
2.Application deficiencies. The medicinal cannabis delivery service license application
requirements cannot be satisfied by the applicant's proposed business, the application is
Oct. 17, 2023 Item #4 Page 17 of 50
incomplete, supportive documentation was not provided, and/or the applicant failed to
correct deficiencies in the application or provide additional application information within
the response timeframe requested.
3.The applicant made a false or misleading statement on the application.
4.The property owner or business owner has violated any law related to the operations of the
medicinal cannabis delivery service business or laws related to any state or local licensure or
permitting. In considering whether past violations of law warrant denial of a license, the chief
of police or designee may consider the following factors with respect to the property owner
or business owner:
a.The nature of the prior violation(s).
b.The number and/or variety of violations.
c.Whether the violation(s) were willful.
d.All circumstances surrounding the violation(s).
e.Previous sanctions imposed.
f.Any actual or potential harm to the public.
g.Any corrective action(s) taken.
h.The likelihood of recurrence of the violation(s).
i.The length of time a cannabis license or permit had been held at the time of the
violation(s).
j.Any other factor that makes the situation unique or the violation(s) of greater concern.
5.The property owner has failed to take appropriate action to evict or otherwise remove the
business owner and persons conducting commercial cannabis activities at the medicinal
cannabis delivery service business who do not maintain permits or licenses in good standing
with the city or state.
6.The property owner or business owner has been denied a license, permit, or other
authorization to engage in commercial cannabis activity by a state or local licensing authority,
or such license, permit or other authorization is currently suspended, revoked, or non
renewable.
7.The city or state has determined, based on substantial evidence, that the property owner or
business owner is currently in violation of the requirements of this chapter, of this code, state
law, or any other applicable law. The property owner or business owner may file a new
application pursuant to this chapter once the city or state authority determines that the
violation has been corrected.
8.Facts or circumstances exist which indicate that the property owner or business owner has
engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
9.Facts or circumstances exist which indicate that the medicinal cannabis delivery service
business does or would very likely constitute a threat to public health, safety, and/or welfare.
F.License revocation or suspension.
1.The chief of police or designee may revoke or suspend a medicinal cannabis delivery service
license for any of the reasons listed in Section 8.95.060(E) of this chapter.
2.The issuance of three or more administrative citations, verifiable municipal code violations,
verifiable violations of a state permit, state license or other state law, or hearing officer
determinations concerning medicinal cannabis delivery service license requirements within
a 12-month period shall result in revocation of a medicinal cannabis delivery service license.
In the event of license revocation, an application to reestablish a medicinal cannabis delivery
Oct. 17, 2023 Item #4 Page 18 of 50
service license for the same location and/or entity shall not be accepted for a minimum
period of 36 months.
3.Any attempt to transfer a medicinal cannabis delivery service license, or any transfer of
business ownership, property ownership, or possession or control of either a medicinal
cannabis delivery service business or the real property in the city of Carlsbad where the
business is located and continued use of a previously issued medicinal cannabis delivery
service license, shall result in revocation of the medicinal cannabis delivery service license.
4.Revocation or suspension of a license is subject to a 10-calendar day prior written notice and
an opportunity to appeal, if the appeal is requested within 10 calendar days of the date of
the written revocation or suspension notice. The appeal procedures shall follow those
outlined in Section 8.95.080 of this chapter.
5.Suspension or expiration without timely renewal of a license issued by the State of California,
or by any of its departments or divisions, shall immediately suspend the ability of a medicinal
cannabis delivery service business to operate within the city until the State of California, or
any of its departments or divisions, reinstates or reissues the state license. Revocation or
termination of the license of a medicinal cannabis delivery service business by the State of
California, or any of its departments or divisions, shall immediately revoke or terminate the
ability of a medicinal cannabis delivery service business to operate within the city without
notice. If the city becomes aware that a state license has expired or been suspended,
revoked, or terminated, it will initiate proceedings under subsection (F){4) of this section to
suspend or revoke a medicinal cannabis delivery service license.
8.95.070 Violations, inspections, and enforcement.
A.Violations declared a public nuisance. Each and every violation of the provisions of this chapter is
deemed unlawful and a public nuisance.
B.Each violation a separate offense. Each and every violation of this chapter shall constitute a
separate violation, and the city may pursue any and all remedies and actions available under state
and local law for any violations committed by a medicinal cannabis delivery service business, a
business owner, a property owner, or any other persons related to or associated with any
commercial cannabis activity, including suspension or revocation of any license pursuant to
Section 8.95.0G0(F) of this code. Additionally, as a nuisance per se, any violation of this chapter
shall be subject to disgorgement and payment to the city of any monies unlawfully obtained, costs
of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law
or in equity.
C.Remedies are cumulative and not exclusive. The remedies provided in this chapter or this code
are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings
or remedies provided by law.
D.Business owner and property owner responsible for violations. The business owner and property
owner shall be responsible for all local and state law violations that occur in or about a physical
address location, a medicinal cannabis delivery service vehicle, or related to delivery personnel,
whether or not the violations occur within the presence of the business owner or property owner.
E.Inspections and enforcement.
1.The chief of police or designee(s), including code enforcement officers and peace officers,
are charged with enforcing the provisions of this code and shall be authorized to enter a
medicinal cannabis delivery service business or a medicinal cannabis delivery service vehicle
Oct. 17, 2023 Item #4 Page 19 of 50
operating in the city of Carlsbad at any time during the business's hours of operation with or
without notice, subject to constitutional limitations, to do either or both of the following:
a.Inspect the medicinal cannabis delivery service business and medicinal cannabis delivery
service vehicle as well as any recordings and records required to be maintained pursuant
to this chapter or under applicable provisions of state law.
b.Obtain cannabis product samples to test for public safety purposes. Any samples
obtained by the city shall be logged, recorded, and maintained in accordance with the
police department's standards for evidence.
2.The building official and fire marshal, or their designee, reserve the right to schedule a
building code or fire code inspection at any time before, during, or after the medicinal
cannabis delivery service licensing process.
3.It is unlawful for any person having responsibility over the operation of a medicinal cannabis
delivery service business to impede, obstruct, interfere with, or otherwise not allow the city
to conduct an inspection, review or copy records, recordings, or other documents required
to be maintained by such business under this chapter or under state or local law. It is also
unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings,
or other documents required to be maintained by a medicinal cannabis delivery service
business under this chapter or under state or local law.
8.95.080 Appeals.
A. Whenever an appeal is provided for in this chapter from a decision of the chief of police or
designee, the appeal shall be conducted as prescribed in this section.
B.Within 10 calendar days after the date of a decision of the chief of police or designee to revoke,
suspend or deny a license, or to add conditions to a medicinal cannabis delivery service license,
an aggrieved party may appeal such action by filing a written appeal with the city clerk setting
forth the reasons why the decision was not proper. The notice of appeal shall specify:
1.The name and address of the appellant;
2.The date that the medicinal cannabis delivery service license application was filed with the
city;
3.The date of the decision to deny, suspend, revoke, or condition the license which is being
appealed; and
4.The factual basis for the appeal.
C.Upon receipt of a complete and timely filed notice of appeal, the police chief or designee shall
schedule a hearing and send written notice to the appellant at the address provided in the notice
of appeal, by means of registered mail, certified mail, or hand delivery, that within a period of not
less than five days nor more than 14 days from the date of the filing of the notice of appeal with
the city clerk, a hearing shall be conducted to determine the existence of any substantial evidence
which would refute the grounds for the denial of, suspension of, revocation of, or conditions
imposed on a medicinal cannabis delivery service license. The hearing notification shall include
the date, time, and place of the hearing.
D.An administrative hearing officer contracted with the city shall be assigned to the hearing in
accordance with the city's administrative order governing administrative hearing officers. The
hearing shall be conducted pursuant to Chapter 1.10 of this code and any corresponding
administrative orders. If the appellant or their legal counsel fails to present any evidence at the
hearing, any evidence supporting facts which constitute grounds for the medicinal cannabis
delivery service license's denial, suspension, revocation, or additional conditions placed on the
Oct. 17, 2023 Item #4 Page 20 of 50
license shall be deemed uncontested. Any issue not raised in the hearing is waived. The hearing
officer's decision is final.
8.95.090 Limitations of city's liability.
To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect
to having issued a medicinal cannabis delivery service license pursuant to this chapter or otherwise
approving the operation of any medicinal cannabis delivery service business. As a condition to the
approval of any medicinal cannabis delivery service license, the applicant shall be required to meet all
of the following conditions before they can receive the medicinal cannabis delivery service license:
A.Execute an agreement, in a form approved by the city attorney, agreeing to the fullest extent
permitted by law to indemnify, defend (at the applicant's sole cost and expense), and hold the city
of Carlsbad, and its officers, elected and appointed officials, employees, volunteers, and agents
harmless, from any and all claims, losses, damages, injuries, including death, liabilities or losses
which arise out of, or which are in any way related to, the city's issuance of the medicinal cannabis
delivery service license, the city's decision to approve the medicinal cannabis activity, the process
used by the city in making its licensing decision, or the alleged violation of any laws by the
medicinal cannabis delivery service business or any of its officers, employees, or agents.
B.Maintain insurance at coverage limits established by the city's risk manager and with conditions
determined necessary and appropriate from time to time by the city attorney.
C.Reimburse the city for all costs and expenses, including but not limited to attorneys fees and costs
and court costs, which the city may be required to pay as a result of any legal challenge related to
the city's approval of the applicant's medicinal cannabis delivery service license, or related to the
city's approval of a medicinal cannabis activity. The city may, at its sole discretion, participate at
its own expense in the defense of any such action, but such participation shall not relieve any of
the obligations imposed under this section.
D.Nothing in this chapter creates a mandate to issue a medicinal cannabis delivery service license to
a medicinal cannabis delivery service business.
8.95.100. Severability.
If any portion of this chapter, or its application to particular persons or circumstances, is held to be
invalid or unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not
affect the validity of the remaining portions of this chapter or the application of the chapter to persons
or circumstances not similarly situated.
EFFECTIVE DATE: This ordinance shall be effective Jan. 1, 2024; and the City Clerk shall certify
the adoption of this ordinance and cause the full text of the ordinance, or a summary of the ordinance
prepared by the City Attorney to be published at least once in a newspaper of general circulation in the
City of Carlsbad within fifteen days after its adoption.
Oct. 17, 2023 Item #4 Page 21 of 50
INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 17th
day of Oct., 2023, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the_ day of ___ ...., 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
APPROVED AS TO FORM AND LEGALITY:
CINDIE K. McMAHON, City Attorney
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
Oct. 17, 2023 Item #4 Page 22 of 50
Draft Medicinal Cannabis Delivery Service Ordinance
Track Changes Version
REVISIONS TO CHAPTER 5.04 LICENSING BUSINESS GENERALLY
5.04.160 Businesses, operations or uses contravening state or federal law.
Notwithstanding any provision in this code to the contrary, any business, operation or use that cannot be
conducted or carried out without being in violation of state or federal law shall be prohibited in all planning areas,
districts, or zones within the city.
REVISIONS TO PORTIONS OF CHAPTER 8.90 CANNABIS
8.90.010 Purpose.
This chapter is declarative of existing law. The Carlsbad Municipal Code, Title 21 (Zoning), only allows land uses
permitted by the code. No provision of the Carlsbad Municipal Code allows any cannabis operation or land use of
any kind within any zone, with the exception of medicinal cannabis deliveries pursuant to California Code of
Regulations, Title 16, Division 42, Section 5416, and licensed medicinal cannabis delivery service businesses
pursuant to Chapter 8.95 of this code. The purpose and intent of this chapter is to clarify the intent of the
Carlsbad Municipal Code to prevent the cultivation, delivery, distribution, and sale of cannabis within Carlsbad city
limits to the fullest extent of the law. Commercial cannabis activity has judicially recognized adverse secondary
effects on the community, including, but not limited to, increases in crime in the vicinity of or as a result of the
commercial cannabis activity; increases of fraud in obtaining or using state-issued identification cards and
licenses; interference with residential property owners’ enjoyment of their properties when such properties are
located in the vicinity of commercial cannabis activity as a result of increases in crime, litter, noise, and vandalism;
and the deterioration of neighborhoods. Prohibition of commercial cannabis activity is necessary to prevent these
adverse secondary effects and the blighting or degradation of the neighborhoods in the vicinity of commercial
cannabis activity, while at the same time protecting the rights of those individuals who desire to use cannabis
within his or her a private residence as authorized under the Adult Use of Marijuana Act.
Further, it is the intent of this chapter to limit the demands on police and other city resources and allow time for
the state to establish and implement its regulatory and licensing programs under the Medical Cannabis Regulation
and Safety Act of 2015, the Adult Use of Marijuana Act of 2016, and the Medicinal and Adult-Use Cannabis
Regulation and Safety Act of 2017.
This chapter is not intended to conflict with federal or state law. It is the intention of tThe city council intends that
this chapter be interpreted to be compatible with federal and state law. To the extent that this chapter may be
deemed to conflict with any provision of state law, the city council has determined that the subject of the conflict
is a municipal affair.
8.90.020 Definitions.
For the purposes of this chapter and Chapter 8.95 of this code, the following definitions apply:
“Applicant” means a person or entity who has submitted an application for a medicinal cannabis delivery service
license under Chapter 8.95 of this code.
"Business owner" or “business ownership” means any of the following: (1) A person with an aggregate ownership
interest of twenty percent or more in the medicinal cannabis delivery service business, unless the interest is
solely a security, lien, or encumbrance; (2) the chief executive officer of a nonprofit or other entity applying
for, or holding, such license; (3) a member of the board of directors of a nonprofit applying for, or holding,
Exhibit 2
Oct. 17, 2023 Item #4 Page 23 of 50
Draft Medicinal Cannabis Delivery Service Ordinance
Track Changes Version
such license; or (4) an individual participating in the direction, control, or management of the person
applying for, or holding, such license.
“Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether
growing or not; the seeds thereof the plant; the resin extracted from any part of the plant, whether crude or
purified; every compound, manufacture, salt, derivative, mixture, concentrate, or preparation of the plant,
its seeds, or resin; and edible or topical products containing any of the above. “Cannabis” does not include
industrial hemp, as defined in California Health and Safety Code Section 11018.5.
"Cannabis products" has the same meaning as in Section 26001 of the California Business and Professions Code.
“Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the
California Health and Safety Code.
“Commercial cannabis activity” means any cultivation, possession, manufacture, distribution, processing, storing,
laboratory testing, packaging, labeling, transportation, distribution, delivery, or sale of cannabis requiring a
license from the State under Division 10 of the California Business and Professions Code, whether or not
carried on for profit and including medical cannabis cooperatives and collectives, except as approved by the
U.S. Drug Enforcement Administration or the U.S. Food and Drug Administration.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of
cannabis.
“Delivery” means the transfer of cannabis, including the use of any technology platform to arrange for or facilitate
the transfer of cannabis, by any business, cooperative, or collective, whether or not carried on for profit, to
or from any location within the city of Carlsbad.
“Delivery personnel” means persons employed by a state and locally licensed cannabis business who deliver
cannabis and cannabis products from the business premises to customers, or in the case of medicinal
cannabis to qualified patients or caregivers, at a physical address location.
“Distribution” means the procurement, sale, and transport of cannabis or cannabis products between entities
licensed pursuant to the MAUCRSA and any subsequent State of California legislation regarding the same.
“Indoors” means a code compliant space within a building, greenhouse, or other structure which is fully enclosed,
with a complete roof enclosure supported by connecting walls extending from the ground to the roof that,
and is secured against unauthorized entry, and accessible only through one or more locking doors.
“MAUCRSA” means the Medical and Adult Use Cannabis Regulation and Safety Act or Senate Bill 94, signed into
state law in 2017.
“Medicinal cannabis” or “medicinal cannabis product” means medicinal cannabis or medicinal cannabis products,
as those terms are defined in Section 26001 of the California Business and Professions Code. Medicinal
cannabis does not include industrial hemp as defined by Section 81000 of the California Food and
Agricultural Code or Section 11018.5 of the California Health and Safety Code. This definition does not
include cannabis accessories, branded merchandise of the licensee, or promotional materials, which are
prohibited from delivery within the city of Carlsbad by medicinal cannabis delivery service businesses.
“Medicinal cannabis activity” means cultivation, manufacture, processing, laboratory testing, transporting,
delivery, distribution, or sale of medicinal cannabis or a medicinal cannabis product, within the meaning of
California Business and Professions Code Section 19300 et seq.
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“Medicinal cannabis delivery service business” means a business or operation, whether for profit or nonprofit,
whose premises are closed to the public and which sells medicinal cannabis and/or medicinal cannabis
products exclusively by delivery, which requires a state license (Type 9-Non-storefront Retailer) under
California Business and Professions Code Section 26000 et seq. and which requires a medicinal cannabis
delivery service license issued by the city of Carlsbad to legally operate. This definition does not include any
storefront component whereby customers purchase or pick up medicinal cannabis or medicinal cannabis
products at the physical premises of a retail establishment.
“Medicinal cannabis delivery service license” means a city of Carlsbad regulatory license issued pursuant to
Chapter 8.95 of this code to a medicinal cannabis delivery service business.
“Medicinal cannabis delivery service vehicle” means a vehicle used by a medicinal cannabis delivery service
business to deliver medicinal cannabis or medicinal cannabis products. A medicinal cannabis delivery service
vehicle must comply with all requirements of Chapter 8.95 of this code and California Code of Regulations,
Title 4, Division 19, to legally operate.
“Person with an identification card” means a qualified patient, caregiver, or primary caregiver who possesses a
valid identification card as described in California Health and Safety Code Section 11362.7.
“Physical address location” means a real property structure from where a medicinal cannabis delivery service
business conducts its operations. This location may be one of several business locations and does not need
to be the primary business location or headquarters.
“Private residence” means a house, an apartment unit, a mobile home, or other similar dwelling unit.
"Property owner” or “property ownership” means the individual or entity who is the record owner of the property
or premises where a medicinal cannabis delivery service business may be located or is proposed to be
located.
“Public park” means an area created, established, designated, or maintained by a special district, county, the
state, or the federal government for public play, recreation, enjoyment, or for the protection of natural
resources and features at the site.
“Qualified patient” has the same meaning as that term is defined in Section 11362.7 of the California Health and
Safety Code, a person who possesses a physician’s recommendation that complies with Article 25
(commencing with Section 2525) of Chapter 5 of Division 2 of the California Business and Professions Code,
or a primary caregiver for a qualified patient.
“State license” means a permit or license issued by the State of California, or one of its departments or divisions,
under MAUCRSA to engage in medicinal cannabis activity.
“Transport” means the transfer of medicinal cannabis or medicinal cannabis products from the licensed business
location of one licensee to the licensed business location of another licensee, for the purpose of conducting
medicinal cannabis activity authorized by the MAUCRSA.
“Transporter” means a person authorized to transport medicinal cannabis or medicinal cannabis products in
amounts authorized by the State of California, or by one of its departments or divisions under the MAUCRSA.
“Youth center” has the same meaning as that term is defined in California Health and Safety Code Section
11353.1.
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8.90.030 Prohibited activities.
A. Commercial cannabis activity is prohibited within the city of Carlsbad. No person shall engage in any
commercial cannabis activity. No permit, license, or other authorization shall be issued for any commercial
cannabis activity. This prohibition does not apply to licensed medicinal cannabis delivery service businesses
pursuant to Chapter 8.95 of this code, cannabis delivery businesses pursuant to California Code of
Regulations, Title 16, Division 42, Section 5416, and the carriage of cannabis on public roads in the city of
Carlsbad to the limited extent required by Sections 26080(b) and 26090(e) of the California Business and
Professions Code.
B. To the extent not already covered by subsection A, delivery of cannabis is prohibited. No person shall
conduct delivery or participate in the delivery of cannabis.
BC. Cultivation of cannabis is prohibited, except indoors at a private residence as authorized by Section
11362.2(a) of the California Health and Safety Code. Cannabis grown indoors shall be completely screened
from view from public places and neighboring properties. Nothing in this chapter is intended to, nor shall it
be construed to, preclude any owner of real property from limiting or prohibiting cannabis cultivation by its
tenants.
CD. No person shall smoke or ingest cannabis in any public place.
ADDITION OF CHAPTER 8.95 MEDICINAL CANNABIS DELIVERY SERVICE BUSINESSES
Chapter 8.95
MEDICINAL CANNABIS DELIVERY SERVICE BUSINESSES
Sections:
8.95.010 Purpose and intent.
8.95.020 Definitions.
8.95.030 License required.
8.95.040 Fees.
8.95.050 Operational standards.
8.95.060 Decision on the application; license suspension and revocation.
8.95.070 Violations, inspections, and enforcement.
8.95.080 Appeals.
8.95.090 Limitations of city’s liability.
8.95.100 Severability.
8.95.010 Purpose and intent.
The purpose and intent of this chapter is to implement the provisions of Chapter 26 (commencing with Section
26320) to Division 10 of the California Business and Professions Code, referred to as the Medicinal Cannabis
Patients’ Right to Access Act, which, as of January 1, 2024, prohibits a city from adopting or enforcing any
regulations that prohibit or have the effect of prohibiting the delivery of medicinal cannabis to patients or their
primary caregivers by licensed medicinal cannabis delivery service businesses in a timely and readily accessible
manner. This chapter also imposes a regulatory licensing scheme and reasonable regulations to protect the city's
neighborhoods, residents, and businesses from negative impacts associated with the transporting, delivery, and
distribution of medicinal cannabis and medicinal cannabis products.
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8.95.020 Definitions.
All definitions in Chapter 8.90 of this code also apply to this chapter.
8.95.030 License required.
A. No person shall engage in or conduct any medicinal cannabis delivery service business within the city
without an approved medicinal cannabis delivery service license under this chapter.
B. A separate medicinal cannabis delivery service license shall be required for each physical address location
within the city.
C. An application for a medicinal cannabis delivery service license shall be on forms provided by the Community
Development Department and/or the chief of police or designee, which require all information, permits,
licenses, criminal background check results, and other approvals necessary to verify compliance with this
chapter and all applicable laws. The chief of police or designee reserves the right to request and obtain
additional information from any business owner and property owner submitting a medicinal cannabis
delivery service license application to show compliance with relevant codes and regulations.
D. The business owner and the property owner, if different, shall sign the medicinal cannabis delivery service
license application form.
8.95.040 Fees.
The city council may impose by resolution a nonrefundable fee to reimburse the city for its reasonable and
necessary costs in receiving, processing, reviewing, and inspecting applications and appeals for a medicinal
cannabis delivery service license. This fee shall be in addition to the business license fees and taxes required by
this chapter and Chapter 5.08 of this code.
8.95.050 Operational standards.
In addition to all applicable state and local codes and regulations, medicinal cannabis delivery service businesses
shall be subject to the following standards. The license application shall specify evidence required to demonstrate
that the applicant meets these standards prior to approval of the medicinal cannabis delivery service license.
A. Structure and use standards
1. Medicinal cannabis delivery service businesses shall be allowed in zones listed in Title 21 that expressly
authorize “storage, wholesale, and distribution facilities” as a permitted use.
2. Medicinal cannabis delivery service businesses shall be located at least 1,000 feet from the following
sensitive receptors. All measurements shall be taken from the closest property line of the medicinal
cannabis delivery service business to the closest property line of the sensitive receptor.
a. Residential zones or private residences
b. Public or private schools
c. Daycare centers
d. Churches
e. Public parks
f. Youth centers
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g. Any other medicinal cannabis delivery service business
3. The cumulative size of all structures associated with a medicinal cannabis delivery service business shall
not exceed 3,000 square feet.
4. All medicinal cannabis or medicinal cannabis products shall be stored in an enclosed permanent
structure. Outdoor storage of medicinal cannabis or medicinal cannabis products is prohibited.
5. No markings or indications of cannabis or cannabis products shall be visible from the public right-of-
way and/or exterior of the structure(s) associated with the medicinal cannabis delivery service
business.
B. Site operations standards.
1. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or
cannabis at or within 200 feet of the physical address location.
2. There shall not be a physician located in or near the physical address location at any time for the
purpose of evaluating patients for the issuance of a medicinal cannabis prescription or card.
3. Odor control devices and techniques shall be incorporated and maintained in all delivery businesses to
ensure that odors from cannabis are not detectable off-site.
4. All cannabis and cannabis products sold or distributed in the city shall be cultivated, manufactured, and
transported by licensed facilities that maintain operations in full conformance with state and local
regulations.
5. Display of licenses. The original copy of a medicinal cannabis delivery service license issued by the city
pursuant to this chapter, along with the medicinal cannabis delivery business’s state cannabis license
and city-issued business license, shall be readily available upon request by the chief of police or
designee and not visible to the public.
6. Recordkeeping requirements.
a. Medicinal cannabis delivery service businesses shall comply with all provisions of Chapters 5.04
and 5.08 of this code relating to business license taxes, recordkeeping, and auditing.
b. Reporting and Tracking of Product and of Gross Sales. Pursuant to California Code of Regulations,
Title 16, Division 42, Section 5048, all medicinal cannabis delivery service businesses shall use a
track-and-trace system to track and report on all aspects of the medicinal cannabis delivery
service business, including, but not limited to such matters as cannabis tracking, inventory data,
and gross sales (by weight and by sale). The system must have the capability to produce historical
transactional data relevant to the city of Carlsbad for review by the chief of police or designee.
c. In accordance with California Code of Regulations, Title 16, Division 42, Section 5002, all medicinal
cannabis delivery service businesses shall maintain a current register of the names and contact
information (including the address and telephone number) of anyone owning or holding an
interest in the medicinal cannabis delivery service business and all officers, managers, employees,
agents, and volunteers currently employed or otherwise engaged by the medicinal cannabis
delivery service business. The register required by this paragraph shall be provided to the chief of
police or designee(s) upon a reasonable request.
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d. All medicinal cannabis delivery service businesses shall maintain a record of all persons, qualified
patients, collectives, and primary caregivers served by the business for a period of no less than
four years.
e. All medicinal cannabis delivery service businesses shall maintain records of their inventory
acquired, including the name and address of each supplier, the date of acquisition and the
quantity acquired from each supplier, and the location of the cultivation of the supplier, and shall
maintain a copy of the supplier's state license to cultivate (if required) for a period of no less than
four years.
f. Subject to any restrictions under state or federal law, all medicinal cannabis delivery service
businesses shall allow the chief of police or designee to have access to the business's books,
records, and accounts, together with any other data or documents, for a period of no less than
four years for the purpose of conducting an audit or examination. Books, records, accounts, and
any and all relevant data or documents must be produced no later than 24 hours after receipt of
the city's request, unless otherwise stipulated by the city.
7. Security measures. Medicinal cannabis delivery service businesses shall implement security measures
that comply with all state law requirements, that deter and prevent the unauthorized entrance into
areas containing medicinal cannabis or medicinal cannabis products, and that deter and prevent the
theft of such products. These security measures include, but are not limited to the following, to the
satisfaction of the chief of police or designee:
a. Ensure that all medicinal cannabis and medicinal cannabis products are kept in a manner to
prevent diversion, theft, and loss.
b. Install and maintain surveillance cameras that comply with California Code of Regulations, Title
16, Division 42, Section 5044. The medicinal cannabis delivery service business shall be
responsible for ensuring that the security surveillance camera's footage is accessible by the city
manager or designee and the city's police department upon request, and that it is compatible
with the city's software and hardware.
c. Ensure that all entrances and exits of the medicinal cannabis delivery service business are locked
at all times, with entry strictly controlled.
d. Make available a designated security representative/liaison who can meet with the chief of police
or designee regarding any security related measures and/or operational issues.
8. The business owner and property owner may not be convicted of any crimes listed in California
Business and Professions Code Section 19323(b)(5) while operating a medicinal cannabis delivery
service business. A conviction within the meaning of this section means a plea or verdict of guilty or a
conviction or diversion following a plea of nolo contendere.
9. Reporting legal matters. The business owner and property owner shall notify the chief of police or
designee in writing of the following legal matters pending against them, in their individual capacity or
otherwise, within 48 hours of the date of conviction, judgment, order, or final decision:
a. Criminal conviction. The written notification to the city shall include the date of the conviction,
the court docket number, the name of the court in which the conviction was entered, and the
specific offense(s) resulting in a conviction(s).
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b. Civil penalty or judgment. The written notification shall include the date of verdict, entry of
judgment, or order, the court docket number, the name of the court in which the matter was
adjudicated, and a description of the civil penalty or judgment rendered.
c. Administrative order. The written notification shall include the date of the order, the name of the
agency issuing the order, and a description of the administrative penalty or decision rendered
against the business owner or property owner.
d. Revocation or suspension of a state or local license, permit, or other authorization. The written
notification shall include the name of the local agency involved, a written explanation of the
proceeding or enforcement action, and the specific violation(s) that led to the revocation or
suspension.
C. Delivery operations standards.
1. In accordance with California Code of Regulations, Title 4, Division 19, Section 15417(a), all medicinal
cannabis delivery service vehicles shall not have any marking or other indications on the exterior of the
vehicle that may indicate that the delivery personnel is carrying cannabis goods for delivery.
2. All deliveries of medicinal cannabis and medicinal cannabis products must be to a physical address
location other than the cannabis delivery business’s physical address location.
3. All deliveries of medicinal cannabis and medicinal cannabis products shall only be made to the
customer’s residence. Deliveries of medicinal cannabis and medicinal cannabis products are prohibited
to schools, day care centers, youth centers, public parks and open space, public buildings, and
commercial establishments, including but not limited to restaurants and places of work, whether or not
members of the public are present.
4. Medicinal cannabis and medicinal cannabis products may be transported by one medicinal cannabis
delivery service business’s physical address location to another medicinal cannabis delivery service
business’s physical address location if the state retail licenses for both locations are held by the same
licensee.
5. Deliveries of medicinal cannabis and medicinal cannabis products are only permitted during the hours
specified under state law.
6. Only direct employees of a medicinal cannabis delivery service business may serve as delivery
personnel. An independent contractor, third-party courier service, or an individual employed through
a staffing agency does not qualify as a direct employee.
7. Before dispensing any medicinal cannabis or medicinal cannabis products to persons requesting
delivery, delivery personnel must verify that the requestor and recipient is 18 years of age or older and
is a person with an identification card, as defined in this chapter. Any person who causes or permits a
delivery of medicinal cannabis or medicinal cannabis products within the city of Carlsbad to be made to
a person other than a person with an identification card may be charged with a violation of this section.
D. Additional standards and regulations. The city manager or designee may adopt any necessary rules,
regulations, and processes governing medicinal cannabis delivery service licenses and the operations of
medicinal cannabis delivery service businesses.
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8.95.060 Decision on the application; license suspension and revocation.
A. The chief of police or designee is authorized to approve, deny, suspend, or revoke a medicinal cannabis
delivery service license.
B. Following receipt of a complete medicinal cannabis delivery service license application, the chief of police or
designee shall notify the applicant of the decision that approves the license, conditionally approves the
license, or denies the license with the reasons for denial stated.
C. A medicinal cannabis delivery service license issued pursuant to this chapter shall expire 12 months after the
date of its issuance, after which time a new license application must be submitted to continue the medicinal
cannabis delivery service business. License renewals are not permitted.
D. License approval and modifications.
1. A medicinal cannabis delivery service license shall not be issued unless the property owner(s) and
business owner(s) successfully pass a criminal background check verifying that they have not been
convicted of any crimes listed in California Business and Professions Code Section 19323(b)(5). The
criminal background check shall be conducted by the chief of police or designee. A conviction within
the meaning of this section means a plea or verdict of guilty or a conviction or diversion following a
plea of nolo contendere.
2. The chief of police or designee is authorized to impose additional conditions on a medicinal cannabis
delivery service license as necessary to ensure compliance with state or local laws and regulations or to
preserve the public health, safety, or welfare. Any additional license conditions will be provided in
writing to the applicant by the chief of police or designee and may be appealed in accordance with
Section 8.95.080 of this chapter.
3. Modifications or changes to an approved medicinal cannabis delivery service license, including but not
limited to modifications to the physical address location or premises, business ownership, or property
ownership, require approval of a new medicinal cannabis delivery service license pursuant to this
chapter prior to the modifications or changes taking effect. Any such modifications or changes made
without approval of a new license constitutes a violation of this chapter.
E. License denial. The chief of police or designee may deny a medicinal cannabis delivery service license for any
of the following reasons:
1. Any of the reasons provided in California Business and Professions Code Section 26057(b).
2. Application deficiencies. The medicinal cannabis delivery service license application requirements
cannot be satisfied by the applicant’s proposed business, the application is incomplete, supportive
documentation was not provided, and/or the applicant failed to correct deficiencies in the application
or provide additional application information within the response timeframe requested.
3. The applicant made a false or misleading statement on the application.
4. The property owner or business owner has violated any law related to the operations of the medicinal
cannabis delivery service business or laws related to any state or local licensure or permitting. In
considering whether past violations of law warrant denial of a license, the chief of police or designee
may consider the following factors with respect to the property owner or business owner:
a. The nature of the prior violation(s).
b. The number and/or variety of violations.
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c. Whether the violation(s) were willful.
d. All circumstances surrounding the violation(s).
e. Previous sanctions imposed.
f. Any actual or potential harm to the public.
g. Any corrective action(s) taken.
h. The likelihood of recurrence of the violation(s).
i. The length of time a cannabis license or permit had been held at the time of the violation(s).
j. Any other factor that makes the situation unique or the violation(s) of greater concern.
5. The property owner has failed to take appropriate action to evict or otherwise remove the business
owner and persons conducting commercial cannabis activities at the medicinal cannabis delivery
service business who do not maintain permits or licenses in good standing with the city or state.
6. The property owner or business owner has been denied a license, permit, or other authorization to
engage in commercial cannabis activity by a state or local licensing authority, or such license, permit or
other authorization is currently suspended, revoked, or non-renewable.
7. The city or state has determined, based on substantial evidence, that the property owner or business
owner is currently in violation of the requirements of this chapter, of this code, state law, or any other
applicable law. The property owner or business owner may file a new application pursuant to this
chapter once the city or state authority determines that the violation has been corrected.
8. Facts or circumstances exist which indicate that the property owner or business owner has engaged in
unlawful, fraudulent, unfair, or deceptive business acts or practices.
9. Facts or circumstances exist which indicate that the medicinal cannabis delivery service business does
or would very likely constitute a threat to public health, safety, and/or welfare.
F. License revocation or suspension.
1. The chief of police or designee may revoke or suspend a medicinal cannabis delivery service license for
any of the reasons listed in Section 8.95.060(E) of this chapter.
2. The issuance of three or more administrative citations, verifiable municipal code violations, verifiable
violations of a state permit, state license or other state law, or hearing officer determinations
concerning medicinal cannabis delivery service license requirements within a 12-month period shall
result in revocation of a medicinal cannabis delivery service license. In the event of license revocation,
an application to reestablish a medicinal cannabis delivery service license for the same location and/or
entity shall not be accepted for a minimum period of 36 months.
3. Any attempt to transfer a medicinal cannabis delivery service license, or any transfer of business
ownership, property ownership, or possession or control of either a medicinal cannabis delivery service
business or the real property in the city of Carlsbad where the business is located and continued use of
a previously issued medicinal cannabis delivery service license, shall result in revocation of the
medicinal cannabis delivery service license.
4. Revocation or suspension of a license is subject to a 10-calendar day prior written notice and an
opportunity to appeal, if the appeal is requested within 10 calendar days of the date of the written
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revocation or suspension notice. The appeal procedures shall follow those outlined in Section 8.95.080
of this chapter.
5. Suspension or expiration without timely renewal of a license issued by the State of California, or by any
of its departments or divisions, shall immediately suspend the ability of a medicinal cannabis delivery
service business to operate within the city until the State of California, or any of its departments or
divisions, reinstates or reissues the state license. Revocation or termination of the license of a
medicinal cannabis delivery service business by the State of California, or any of its departments or
divisions, shall immediately revoke or terminate the ability of a medicinal cannabis delivery service
business to operate within the city without notice. If the city becomes aware that a state license has
expired or been suspended, revoked, or terminated, it will initiate proceedings under subsection (F)(4)
of this section to suspend or revoke a medicinal cannabis delivery service license.
8.95.070 Violations, inspections, and enforcement.
A. Violations declared a public nuisance. Each and every violation of the provisions of this chapter is deemed
unlawful and a public nuisance.
B. Each violation a separate offense. Each and every violation of this chapter shall constitute a separate
violation, and the city may pursue any and all remedies and actions available under state and local law for
any violations committed by a medicinal cannabis delivery service business, a business owner, a property
owner, or any other persons related to or associated with any commercial cannabis activity, including
suspension or revocation of any license pursuant to Section 8.95.060(F) of this code. Additionally, as a
nuisance per se, any violation of this chapter shall be subject to disgorgement and payment to the city of any
monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or
remedy available at law or in equity.
C. Remedies are cumulative and not exclusive. The remedies provided in this chapter or this code are not to be
construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by
law.
D. Business owner and property owner responsible for violations. The business owner and property owner shall
be responsible for all local and state law violations that occur in or about a physical address location, a
medicinal cannabis delivery service vehicle, or related to delivery personnel, whether or not the violations
occur within the presence of the business owner or property owner.
E. Inspections and enforcement.
1. The chief of police or designee(s), including code enforcement officers and peace officers, are charged
with enforcing the provisions of this code and shall be authorized to enter a medicinal cannabis
delivery service business or a medicinal cannabis delivery service vehicle operating in the city of
Carlsbad at any time during the business’s hours of operation with or without notice, subject to
constitutional limitations, to do either or both of the following:
a. Inspect the medicinal cannabis delivery service business and medicinal cannabis delivery service
vehicle as well as any recordings and records required to be maintained pursuant to this chapter
or under applicable provisions of state law.
b. Obtain cannabis product samples to test for public safety purposes. Any samples obtained by the
city shall be logged, recorded, and maintained in accordance with the police department’s
standards for evidence.
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2. The building official and fire marshal, or their designee, reserve the right to schedule a building code or
fire code inspection at any time before, during, or after the medicinal cannabis delivery service
licensing process.
3. It is unlawful for any person having responsibility over the operation of a medicinal cannabis delivery
service business to impede, obstruct, interfere with, or otherwise not allow the city to conduct an
inspection, review or copy records, recordings, or other documents required to be maintained by such
business under this chapter or under state or local law. It is also unlawful for a person to conceal,
destroy, deface, damage, or falsify any records, recordings, or other documents required to be
maintained by a medicinal cannabis delivery service business under this chapter or under state or local
law.
8.95.080 Appeals.
A. Whenever an appeal is provided for in this chapter from a decision of the chief of police or designee, the
appeal shall be conducted as prescribed in this section.
B. Within 10 calendar days after the date of a decision of the chief of police or designee to revoke, suspend or
deny a license, or to add conditions to a medicinal cannabis delivery service license, an aggrieved party may
appeal such action by filing a written appeal with the city clerk setting forth the reasons why the decision
was not proper. The notice of appeal shall specify:
1. The name and address of the appellant;
2. The date that the medicinal cannabis delivery service license application was filed with the city;
3. The date of the decision to deny, suspend, revoke, or condition the license which is being appealed;
and
4. The factual basis for the appeal.
C. Upon receipt of a complete and timely filed notice of appeal, the police chief or designee shall schedule a
hearing and send written notice to the appellant at the address provided in the notice of appeal, by means
of registered mail, certified mail, or hand delivery, that within a period of not less than five days nor more
than 14 days from the date of the filing of the notice of appeal with the city clerk, a hearing shall be
conducted to determine the existence of any substantial evidence which would refute the grounds for the
denial of, suspension of, revocation of, or conditions imposed on a medicinal cannabis delivery service
license. The hearing notification shall include the date, time, and place of the hearing.
D. An administrative hearing officer contracted with the city shall be assigned to the hearing in accordance with
the city’s administrative order governing administrative hearing officers. The hearing shall be conducted
pursuant to Chapter 1.10 of this code and any corresponding administrative orders. If the appellant or their
legal counsel fails to present any evidence at the hearing, any evidence supporting facts which constitute
grounds for the medicinal cannabis delivery service license’s denial, suspension, revocation, or additional
conditions placed on the license shall be deemed uncontested. Any issue not raised in the hearing is waived.
The hearing officer’s decision is final.
8.95.090 Limitations of city’s liability.
To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to having
issued a medicinal cannabis delivery service license pursuant to this chapter or otherwise approving the operation
of any medicinal cannabis delivery service business. As a condition to the approval of any medicinal cannabis
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delivery service license, the applicant shall be required to meet all of the following conditions before they can
receive the medicinal cannabis delivery service license:
A. Execute an agreement, in a form approved by the city attorney, agreeing to the fullest extent permitted by
law to indemnify, defend (at the applicant's sole cost and expense), and hold the city of Carlsbad, and its
officers, elected and appointed officials, employees, volunteers, and agents harmless, from any and all
claims, losses, damages, injuries, including death, liabilities or losses which arise out of, or which are in any
way related to, the city's issuance of the medicinal cannabis delivery service license, the city's decision to
approve the medicinal cannabis activity, the process used by the city in making its licensing decision, or the
alleged violation of any laws by the medicinal cannabis delivery service business or any of its officers,
employees, or agents.
B. Maintain insurance at coverage limits established by the city’s risk manager and with conditions determined
necessary and appropriate from time to time by the city attorney.
C. Reimburse the city for all costs and expenses, including but not limited to attorneys fees and costs and court
costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of
the applicant's medicinal cannabis delivery service license, or related to the city's approval of a medicinal
cannabis activity. The city may, at its sole discretion, participate at its own expense in the defense of any
such action, but such participation shall not relieve any of the obligations imposed under this section.
D. Nothing in this chapter creates a mandate to issue a medicinal cannabis delivery service license to a
medicinal cannabis delivery service business.
8.95.100. Severability.
If any portion of this chapter, or its application to particular persons or circumstances, is held to be invalid or
unconstitutional by a final decision of a court of competent jurisdiction, the decision shall not affect the validity of
the remaining portions of this chapter or the application of the chapter to persons or circumstances not similarly
situated.
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City of Carlsbad City Council
City Hall 1200 Carlsbad Village Drive Carlsbad, CA 92008 760-434-2820 t
May 31, 2022
Honorable Scott Wiener
California State Senate
1021 O Street, Room 6630
Sacramento, CA 95814
Re: Senate Bill 1186 (Wiener) – OPPOSE As Amended April 25, 2022
Dear Senator Wiener:
On behalf of the City of Carlsbad, I write to inform you of our oppose position to Senate Bill 1186,
which would severely undermine local decision-making under the Medicinal and Adult-Use Cannabis
Regulation and Safety Act (MAUCRSA).
We believe that local control must be sustained to ensure counties and cities can set regulatory
standards associated with local land-use authority. This includes the ability to restrict or prohibit
commercial cannabis activities or impose stricter local standards than those afforded in State
regulations.
Legal action in the Fresno County Superior Court has clarified that local jurisdictions currently have
the ability to restrict or prohibit cannabis delivery transactions under MAUCRSA, and this bill attempts
to remove that tool from communities' regulatory toolbox.
Changing the local authorization rules while the state is still in the implementation phase of the
regulatory framework will break the partnership and trust that either currently exists or awaits. This
will impede the gradual, but consistent, progress that local jurisdictions have made toward expanding
cannabis retail permitting throughout the state. We see this bill as counter-productive to the overall
goals put forth by those who wish to promote further access.
For these reasons we must respectfully oppose your SB 1186. Please reach out to our legislative
advocate with the Renne Public Policy Group, Sharon Gonsalves, at 916-849-5536 with questions.
Sincerely,
Matt Hall
Mayor, City of Carlsbad
CC: Assemblymember Tasha Boerner Horvath
Senator Pat Bates
Carlsbad City Council
Exhibit 3
Oct. 17, 2023 Item #4 Page 36 of 50
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J:\RequestsMarch2015\ComEconDev\Planning\RITM0035594_23\Medicinal Cannabis Delivery Services Map.mxd
Parcels That Allow Medicinal CannabisDelivery Service Businesses
Legend
Zoning District - Planned Industrial (P-M)
Sensitive Receptors Combined - 1000 ft Buffer Applied
Exhibit 4
Oct. 17, 2023 Item #4 Page 37 of 50
MEDICINAL CANNABIS DELIVERY
SERVICE LICENSE APPLICATION
P-41
Community Development
Planning Division
1635 Faraday Avenue
Carlsbad, CA 92008
442-339-2600
Form P-41; NEW: DRAFT Page 1 of 5
This application provides a process for the establishment and operation of a non-retail medicinal cannabis delivery
service business within the City of Carlsbad, pursuant to Carlsbad Municipal Code Chapter 8.95 and California
Business & Professions Code Division 10, Chapter 26 (the Medicinal Cannabis Patients’ Right to Access Act). To be
accepted for processing, a completed Medicinal Cannabis Delivery Service License Application, P-41, must be
submitted to the Planning Division of the Community Development Department, accompanied by a completed
Supplemental Application Package, P-41(A). A City of Carlsbad business license is also required should a cannabis
delivery service license be issued.
The Planning Division shall conduct the initial review to ensure compliance with required land use regulations before
forwarding the application to the Carlsbad Police Department for final processing and issuance. Additional
information, materials, or both may be requested following the city’s initial application review. The standard
operating conditions in this application form shall apply to all medicinal cannabis delivery service businesses. The City
may impose additional conditions following review of the proposed application.
Each medicinal cannabis delivery service business location in the City of Carlsbad requires a separate medicinal
cannabis delivery service license. Each license issued under these regulations shall be valid for one year from the date
of issuance. A license is non-renewable. A new application and associated fees must be submitted for subsequent
license years. Applicants are encouraged to file an application at least 45 days before the medicinal cannabis delivery
service business intends to start/continue doing business to ensure timely processing.
Ready to Submit? Email completed forms P-41, P-41(A) and all requirement documents to Planning@carlsbadca.gov.
BUSINESS ENTITY INFORMATION
☐Corporation ☐Limited Liability Co. (LLC) ☐ Limited Partnership ☐Limited Liability Part. (LLP)
☐General Partnership ☐Sole Proprietor ☐Other:
Business information
Applicant/business owner* contact information
(Attach additional pages as necessary)
Legal business name: Full legal name:
Doing Business As (DBA): Cell phone number:
Place/date of DBA filing: Email address:
Sec. of State Reg Entity ID: Mailing address (street):
Taxpayer ID Number: Mailing address (city/st./zip):
BUSINESS SITE INFORMATION
Property information Record property owner contact information
Assessor Parcel Nos (APN): Full legal name:
Site Address (street): Cell phone number:
Site address (city/st./zip): Email address:
Mailing address (street):
Mailing address (city/st./zip):
*“Business owner” is defined in Carlsbad Municipal Code Section 8.90.020 as: (1) A person with an aggregate ownership interest
of twenty percent or more in the medicinal cannabis delivery service business, unless the interest is solely a security, lien, or
encumbrance; (2) the chief executive officer of a nonprofit or other entity applying for, or holding, such license; (3) a member of
the board of directors of a nonprofit applying for, or holding, such license; or (4) an individual participating in the direction,
control, or management of the person applying for, or holding, such license.
Exhibit 5
Oct. 17, 2023 Item #4 Page 38 of 50
Form P-41; NEW: DRAFT Page 2 of 5
Business Owner Certification: I certify I am the business owner and authorized to bind the company by my signature
alone. If additional signatures are required, they are attached separately. Under penalty of perjury, I declare that the
information contained within and submitted with this application is complete, true, and correct. I understand that a
false statement or misrepresentation of fact is cause for rejection of this application, denial of a license, or revocation
of a license issued. I also understand that there is no guarantee that by submitting a medicinal cannabis delivery
service license application and paying any required application fee that my business will obtain any land use
entitlements or a license to operate a medicinal cannabis delivery service business in the City of Carlsbad. I also
understand a separate, valid city business license is required and will be on file with the city. By signing below, I also
hereby declare that I have read the application information packet and will adhere to the guidelines and requirements
included in it.
Business owner name (print) Business owner signature Date
(Attach additional pages as necessary for additional business owners)
Record Property Owner Certification: I certify that I am the record property owner of the property address listed above
where the medicinal cannabis delivery service business will be located. I am familiar with the proposed medicinal cannabis
delivery service business as described in this application form and associated documents. I have reviewed Carlsbad Municipal
Code Chapter 8.95 and authorize the applicant to use my property for the proposed use.
Record property owner name (print) Record property owner signature Date
(Attach additional pages as necessary for additional record property owners)
Oct. 17, 2023 Item #4 Page 39 of 50
Form P-41; NEW: DRAFT Page 3 of 5
STANDARD OPERATING CONDITIONS
Medicinal Cannabis Delivery Service License
By signing the Medicinal Cannabis Delivery Service License Application, P-41, declaration below, the business owner(s)
and record property owner(s) agree to comply with all conditions below for the duration of the medicinal cannabis
delivery service business operations in the City of Carlsbad.
1. The business owner shall ensure ongoing compliance with all local, county, and state laws and regulations,
including all conditions that have been imposed on the medicinal cannabis delivery service license. Any failure
to do so, of whatever magnitude or materiality, can result in the immediate suspension and/or revocation of
the license(s) issued by the city.
2. Prior to license issuance, the business owner(s) and record property owner(s) must pass a criminal background
check conducted by the Carlsbad Police Department verifying that they do not have a prior conviction of any
crimes listed in California Business and Professions Code Section 19323(b)(5). Additionally, the business
owner(s) and record property owner(s) may not be convicted of any crimes listed in California Business and
Professions Code Section 19323(b)(5) while operating a medicinal cannabis delivery service business.
3. The business owner(s) shall operate the medicinal cannabis delivery service business consistent with the
materials provided in the Supplemental Application Package, P-41(A), which were approved as part of the
medicinal cannabis delivery service license. The business owner(s) shall notify the Carlsbad Police Department
of any modifications/changes to the information provided in the Supplemental Application Package within 30
days of the proposed modification/change.
4. Prior to making a delivery of medicinal cannabis or medicinal cannabis products, delivery personnel must verify
that the requestor and recipient is 18 years of age or older and is a person with an identification card, as
defined in Carlsbad Municipal Code Section 8.90.020.
5. All vehicles used for delivery shall be maintained and operated in a manner and in a condition required by law
and applicable regulations.
6. Persons involved in making deliveries must have a copy of a city-approved medicinal cannabis delivery service
license in their possession and available upon request.
7. Deliveries shall be directly to the residence or lodging unit of the recipient. Deliveries to any other locations are
prohibited.
8. Deliveries may occur only between the hours of 6:00 a.m. and 10:00 p.m., or as otherwise amended by state
law.
9. The original copy of a City of Carlsbad medicinal cannabis delivery service license, business license, and the
business’s state cannabis license shall be readily available upon request and not visible to the public.
10. All cannabis and cannabis products sold or distributed in the city shall be cultivated, manufactured, and
transported by licensed facilities that maintain operations in full conformance with state and local regulations.
11. No markings or indications of cannabis or cannabis products being delivered shall be displayed on delivery
service vehicles, nor shall any markings or indications of cannabis or cannabis products be visible from the
public right-of-way or the exterior of the structure(s) associated with the medicinal cannabis delivery service
business.
12. Odor control devices and techniques per the Odor Control Plan on the Supplemental Application Package, P-
41(A), shall be incorporated and maintained in all medicinal cannabis delivery service businesses to ensure that
odors from cannabis are not detectable off-site.
Oct. 17, 2023 Item #4 Page 40 of 50
Form P-41; NEW: DRAFT Page 4 of 5
13. There shall not be a physician located in or near the business’s physical address location at any time for the
purpose of evaluating patients for the issuance of a medicinal cannabis prescription or card.
14. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or cannabis at or
within 200 feet of the business’s physical address location.
15. Security Measures:
a. Ensure that all medicinal cannabis and medicinal cannabis products are kept in a manner to prevent
diversion, theft, and loss.
b. Ensure no outdoor storage of cannabis or cannabis products.
c. Install and maintain surveillance cameras that comply with California Code of Regulations, Title 16,
Division 42, Section 5044, and ensure that the footage is accessible by the city upon request.
d. Ensure that all entrances and exits of the medicinal cannabis delivery service business are locked at all
times, with entry strictly controlled.
16. The business owner(s) shall maintain a current Recordkeeping Plan onsite and available upon request. The plan
shall include the following minimum information:
a. Reporting and tracking of product and gross sales using a track-and-trace system, as required under state
law. The system must have the capability to produce historical transactional data relevant to the City of
Carlsbad for review as requested.
b. A current register of the names and contact information (including the address and telephone number) of
anyone owning or holding an interest in the cannabis delivery business and all officers, managers,
employees, agents, and volunteers currently employed or otherwise engaged by the cannabis delivery
business.
c. A record of all persons, qualified patients, collectives, and primary caregivers served by the cannabis
business for a period of no less than four years.
d. Records of the business’s inventory acquired, including the name and address of each supplier, the date
of acquisition and the quantity acquired from each supplier, the location of the cultivation of the
supplier, and a copy of the supplier's state license to cultivate (if required), for a period of no less than
four years.
17. All medicinal cannabis delivery service businesses shall be subject to and facilitate the following inspections by
the city to ensure code compliance. The inspections in subsections (a) and (b) may be conducted with or
without prior notice:
a. Inspections of the medicinal cannabis delivery service business and delivery vehicle(s), as well as any
recordings and records required to be maintained.
b. Obtaining of cannabis product samples to test for public safety purposes.
c. Inspections scheduled by the building official and/or fire marshal at any time before, during, or after the
medicinal cannabis delivery service licensing process.
18. The business owner(s) and record property owner(s) shall notify the police department in writing of any civil
judgment or order, criminal conviction, administrative order, or revocation or suspension of a state or local
license, permit, or other authorization within 48 hours of the date of conviction, judgment, order, or final
decision.
________________________
Oct. 17, 2023 Item #4 Page 41 of 50
Form P-41; NEW: DRAFT Page 5 of 5
Declaration: By signing below, we acknowledge that we have read, understand, and agree to abide by all operating
requirements for medicinal cannabis delivery service businesses in the City of Carlsbad for the duration of the business
operations in the City of Carlsbad, as set forth above and more fully in Carlsbad Municipal Code Chapter 8.95. Failure to
operate in the manner prescribed by these requirements, and any other applicable requirements under state or local
law, may result in penalties being imposed, including, but not limited to, citations, civil penalties, suspension, and/or
revocation of the medicinal cannabis delivery service license, and/or criminal prosecution.
Business owner name (print) Business owner signature Date
(Attach additional pages as necessary for additional business owners)
Record property owner name (print) Record property owner signature Date
(Attach additional pages as necessary for additional record property owners)
Oct. 17, 2023 Item #4 Page 42 of 50
SUPPLEMENTAL APPLICATION PACKAGE
Medicinal Cannabis Delivery Service License
P-41(A)
Community Development
Planning Division
1635 Faraday Avenue
Carlsbad, CA 92008
442-339-2600
Form P-41(A); REV: DRAFT Page 1 of 4
The purpose of the Supplemental Application Package is to ensure that the proposed medicinal cannabis delivery
service business demonstrates full compliance with regulations outlined in Carlsbad Municipal Code Chapter 8.95 and
relevant state laws before obtaining a medicinal cannabis delivery service license and a business license from the city.
The items below represent the minimum requirements necessary to initiate a plan check review. Planning Division
staff may reject the submittal of a medicinal cannabis delivery service license application if the Supplemental
Application Package fails to include all items listed in this form. After the submittal of the Medicinal Cannabis Delivery
Service License application, P-41, and Supplemental Application Package, P-41(A), additional information, corrections,
or both may be requested by city staff to complete review of the application. Please contact the Planning Division with
any questions.
I.Copy of a Valid Type 9: Non-Storefront Retailer (Delivery Only) license issued by the California Department of
Cannabis Control
II.Business Plan
The business plan shall provide a detailed description of the operational and functional operations associated with
the medicinal cannabis delivery service business. At a minimum, the business plan shall include the following
information, numbered in the format outlined below.
A.Business Overview
1.Summary
Description of the business objectives and services that will be provided.
2. Business-Formation
a.Proof of corporation status. Provide proof of valid corporation status and doing business as
(DBA), which includes the identification of an agent of service.
b.Tax compliance. A current copy of a city business registration certificate (if the business operated
in prior years in the city), state sales tax seller’s permit, and the business’s most recent year
financial statement and tax return.
c.Insurance. The business must provide proof of insurance as required under the Medicinal
Cannabis Delivery Service License Indemnity Agreement.
d.Financial capacity. Financial information such as bank balances, available loans, and other
sources of funding the business.
e.Disclosure of ownership and financial interest holders. The applicant must disclose all owners and
financial interest holders in the medicinal cannabis delivery service business. This includes all
entities in a multi-layer business structure, as well as the chief financial officer, members of the
board of directors, partners, trustees and all persons who have control of a trust, and managing
members or non-member managers of the entity. Each entity disclosed as having a financial
interest must disclose the identities of persons until only individuals remain.
B.Operational Plan
The operational plan provides a detailed description of the operations and procedures associated with the
medicinal cannabis delivery service business and shall include the following sections:
Exhibit 6
Oct. 17, 2023 Item #4 Page 43 of 50
Form P-41(A); REV: DRAFT Page 2 of 4
1. Administrative Operations
a. Consistent with California Code of Regulations, Title 16, Division 42, Section 5002, provide a
current register of the names and contact information (including the address and telephone
number) of anyone owning or holding an interest in the medicinal cannabis delivery service
business and all officers, managers, employees, agents, and volunteers currently employed or
otherwise engaged by the medicinal cannabis delivery service business (must update as needed).
Note that per state law, all employees and delivery drivers must be 21 or older.
b. The name and telephone number (mobile preferred, if available) of an owner and/or manager to
whom emergency notice can be provided at any hour of the day.
c. Hours of operation and opening/closing procedures.
d. Description of cash handling operations.
e. Description of marketing efforts and campaigns.
2. Inventory control procedures
a. Evidence of reporting and tracking of product and gross sales using a track-and-trace system, as
required California Code of Regulations, Title 16, Division 42, Section 5048. The system must have
the capability to produce historical transactional data relevant to the City of Carlsbad for review
as requested.
b. Estimate quantity of medicinal cannabis to be stored onsite at any one time.
c. Description of quality control procedures describing how cannabis is properly packaged, labeled,
and stored.
d. Proof that all medicinal cannabis and medicinal cannabis products in the custody or control of the
medicinal cannabis delivery service business were cultivated, manufactured, and transported by
licensed facilities that maintain operations in full conformance with state and local regulations.
e. Odor Control Plan. A detailed plan describing how the business will prevent all odors generated
from the storage of cannabis from escaping the buildings at the business’s physical address
location, such that the odor cannot be detected by a reasonable person of normal sensitivity
outside the building(s). The business shall provide a statement from an air system manufacturer
that the system has been designed to achieve the above standard based on the specific building
size and layout.
3. Delivery operations
a. Current list of all delivery vehicles’ make, model, year, color, and license plate number (must
update as needed).
b. Delivery availability schedules, which specifies the days and times delivery service will be
available within the City of Carlsbad and maximum number of drivers available at any one time
during the day.
c. Description of how delivery orders will be taken (email, phone, website, app, etc.).
4. Security operations
a. A detailed security plan outlining the measures that will be taken to ensure the safety of persons
and property at the business’s physical address location, prevent unauthorized entrance into
areas containing medicinal cannabis or medicinal cannabis products, and deter and prevent theft
of medicinal cannabis or medicinal cannabis products. The plan shall include the following
minimum information:
Oct. 17, 2023 Item #4 Page 44 of 50
Form P-41(A); REV: DRAFT Page 3 of 4
i. Description of security measures that will ensure that all medicinal cannabis and medicinal
cannabis products are kept in a manner to prevent diversion, theft, and loss, and will not
be stored outdoors.
ii. Overview of the structural security measures including, but not limited to exterior/interior
cameras that comply with California Code of Regulations, Title 16, Division 42, Section
5044, security exits and entrances, and employee access cards.
iii. Overview of any security personnel including, but not limited to, security guard postings
and schedules and the designation of a security representative/liaison to meet with the city
upon request regarding any security related measures and/or operational issues.
III. Site Plan
A site plan showing the location and layout of the proposed medicinal cannabis delivery service business, and
the following supporting documentation. (Note: Medicinal cannabis delivery service businesses are authorized
only in the Planned-Industrial (P-M) zone.) Refer to the Informational-Bulletin “Minimum Requirements for
Building Permit Site Plans” (IB-201) for the minimum information and detail required in the site plan.
1. Proof of legal right to occupy.
Written evidence that the medicinal cannabis delivery service business has the legal right to occupy and
use the proposed location, such as a copy of a title, deed, lease, or other written agreement.
2. Parking
Written evidence that the business’s physical address location has at least one on-site parking space
reserved for each delivery vehicle and each on-site administrative personnel on a given day.
3. Business size
Size calculations of all structures associated with the medicinal cannabis delivery service business
showing that the cumulative structure size does not exceed 3,000 square feet. If the business has
multiple locations in the City of Carlsbad, the cumulative structure size of all locations’ structures must
not exceed 3,000 square feet.
4. Distance from sensitive receptors
Written evidence that the business is located at least 1,000 feet from the following sensitive
receptors. All measurements shall be taken from the closest property line of the medicinal cannabis
delivery service business to the closest property line of the sensitive receptor.
a. Residential zones or private residences
b. Public or private schools
c. Daycare centers
d. Churches
e. Public parks
f. Youth centers
g. Any other medicinal cannabis delivery service business
IV. Floor Plans
Dimensioned floor plans for each level of each building that makes up the business’s physical address location,
including the entrances, exits, walls, and storage areas. The plans shall also include the following information
about the site: Current zoning, parking requirements, consistency with development standards for the zone, if
new development planned for the site, and any other site development information.
Oct. 17, 2023 Item #4 Page 45 of 50
Form P-41(A); REV: DRAFT Page 4 of 4
V. Lighting Plan
A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate
security lighting for the business’s physical address location.
VI. Indemnity & Consent Agreement
An indemnity and consent agreement prepared by the City of Carlsbad, signed by the business owner(s) and
record property owner(s), which details insurance requirements and verification of coverage requirements.
__________________________________
Criminal Background Check:
While not an application submittal requirement, the Carlsbad Police Department must verify passage of a criminal
background check before a medicinal cannabis delivery service license can be granted. The background check, which
will commence following submittal of a complete licensing application, is governed as follows:
1. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorize city authorities to
access state and local summary criminal history information for employment, licensing, or certification
purposes, and authorize access to federal level criminal history information by transmitting fingerprint images
and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation,
every person listed as a medicinal cannabis delivery service business owner (as defined in Carlsbad Municipal
Code Section 8.90.020) or record property owner hosting such business must submit fingerprints and other
information deemed necessary by the chief of police or designee(s) for a background investigation by the
Carlsbad Police Department.
2. California Penal Code Sections 11105(b)(11) and 13300(b)(11) allows for a requirement or exclusion from
employment, licensing, or certification based on specific criminal conduct of the subject of the record. Per
Carlsbad Municipal Code Section 8.95.060(D)(1), a medicinal cannabis delivery service license shall not be issued
unless the business owner(s) (as defined in Carlsbad Municipal Code Section 8.90.020) and record property
owner(s) successfully pass a background check verifying that they have not been convicted of any crimes listed
in California Business and Professions Code Section 19323(b)(5). A conviction within the meaning of this section
means a plea or verdict of guilty or a conviction or diversion following a plea of nolo contendere.
3. Background check results information will not be disseminated by the city to any unauthorized or private party.
Oct. 17, 2023 Item #4 Page 46 of 50
Exhibit 7
Oct. 17, 2023 Item #4 Page 47 of 50
Oct. 17, 2023 Item #4 Page 48 of 50
Oct. 17, 2023 Item #4 Page 49 of 50
Oct. 17, 2023 Item #4 Page 50 of 50
JEFF MURPHY, Community Development Director
JEFFERY SMITH, Police Captain
October 17, 2023
Item #4
Medicinal Cannabis Delivery
Services
PROPOSED ACTION
Introduce an ordinance to allow the
establishment of non-storefront retail medicinal
cannabis delivery businesses in the city,
consistent with the Medicinal Cannabis Patients’
Right to Access Act (SB 1186)
ITEM 4: Medicinal Cannabis Delivery
2
SENATE BILL 1186
•Current laws (prohibitions) undermine Prop 215 (‘96)
•Assumes “serious barriers” to medicinal cannabis
•City cannot prohibit medicinal cannabis delivery
•City can impose reasonable standards
•City formally opposed SB 1186
•Effective January 1, 2024
ITEM 4: Medicinal Cannabis Delivery
3
•Balance allowance under state law with
local health & safety concerns
•Utilize existing permit processing
procedures
•Apply multi-department review and
enforcement
ITEM 4: Medicinal Cannabis Delivery
APPROACH
4
STANDARDS
•Considered “storage, wholesale and distribution facilities”
•Industrial properties only (P-M Zone)
•1000’ from sensitive receptors
o Homes
o Schools/Public parks
o Churches/daycare/youth centers
o Other cannabis delivery businesses
ITEM 4: Medicinal Cannabis Delivery
5
ITEM 4: Medicinal Cannabis Delivery
6
•Maximum facility size 3,000 square feet
•On-site retail prohibited
•Customer pickup prohibited
•No markings of cannabis shall be visible
•Recipients must have cannabis ID card
•Deliveries only to recipient residence
ITEM 4: Medicinal Cannabis Delivery
STANDARDS
7
•Comprehensive permit application
•Community Development/PD review
•Must have valid state license and pass
background check
•Valid for one year
•City license can be denied, suspended
or revoked
ITEM 4: Medicinal Cannabis Delivery
PERMIT
8
Introduce an ordinance to allow non-
storefront retail medicinal cannabis
delivery service businesses consistent
with the Medicinal Cannabis Patients’
Right to Access Act (SB 1186)
ITEM 4: Medicinal Cannabis Delivery
RECOMMENDATION
9
JEFF MURPHY, Community Development Director
JEFFERY SMITH, Police Captain
October 17, 2023
Item #4
Medicinal Cannabis Delivery
Services