CITY COUNCIL NOVEMBER 2.

2009
PUBLIC HEARING

SUBJECT: AMENDMENT TO THE ZONING ORDINANCE

REGARDING MEDICAL MARIJUANA COLLECTIVES

INITIATED BY: DEPARTMENT OF

Joan Engllsh (Assistant
Llsa Marie Belsanti (Senlor

COMMUNITY DEVELOPMENT DEPARTMENT

Anne Browning Mclntosh (Community Developme
John Keho (Planning Manager)
Laurie Yelton (Associate Planner)

DEPARTMENT OF PUB
Oscar Delgado (Director)
Jeff Aubel (Commercial Code Compliance Manager

STATEMENT ON THE SUBJECT:

The Clty Council will consider a C~ty-initiatedZone Text Amendment to change

medical marijuana collect~vesfrom a conditionally permitted use to a permitted
use in certain commercial zones subject to specified restrictions and consider
amend~ngthe municipal code and adoption of a negat~vedeclaration

RECOMMENDATION:

Introduce on first reading Ordinance No. 09-p "AN ORDINANCE OF THE

ClTY OF WEST HOLLYWOOD, AMENDING THE WEST HOLLYWOOD
MUNICIPAL CODE AND ADOPTION OF A NEGATIVE DECLARATION AND
APPROVAL OF ZONE TEXT AMENDMENT 2009--, TO CHANGE MEDICAL
MARIJUANA COLLECTIVES FROM A CONDITIONALLY PERMITTED USE TO
A PERMITTED USE IN CERTAIN COMMERCIAL ZONES SUBJECT TO
SPECIFIED RESTRICTIONS. REQUIRING SUCH COLLECTIVES TO OBTAIN
A REGULATORY BUSINESS LICENSE." (Attachment A)

BACKGROUND,

In November, 1996, California voters enacted Proposition 215, called "The

Compassionate Use Act of 1996 " The Act set forth the circumstances under
which marijuana may be prescribed, dispensed and used for medicinal purposes
In California as an exception to the laws proh~bitingthe sale and use of
marijuana.

AGENDA ITEM 3.c

Several years ago, the City experienced a proliferation of medical marijuana
collectives throughout the City's commercial zones. As with many of the City's
commercial uses, several mebical marijuana collectives were esiablished in-
close proximity to residentially zoned properties and sensitive land uses, such as
schools, parks and places of religious worship Consequently, the City Council
took a number of actions to limit the impact of medical marijuana collectives on
the community and it has adopted regulations governing the location and
operation of the facilities

The City, as did most cities, initially decided to regulate collectives through a
discretionary land use process; I e. by requiring a conditional use permit. Now
that we have had some experience with the regulatory experience, staff believes
that there are some disadvantages to this approach. For example, a conditional
use permit (CUP) runs with the land, meaning that once the CUP is issued for a
particular property, the use becomes vested, regardless of the ownership of the
collective. Staff believes it is undesirable to create such a right in any particular
location

Business licensing offers the City more regulatory tools to address the types of
concerns that the collectives raise, but would not sacrifice any of the
requirements that are currently in place through zoning regulation, indeed, as
long as the City maintains a cap on the number of collectives and location
requirements that limit the possible locations for establishment of new collectives,
the removal of the CUP requirement will have no real practical effect

This summer, the City Council directed staff to bring forward a business license
ordinance (Attachment A) that would regulate medical marijuana collectives with
the same requirements currently in the zoning code and to eliminate the
regulations in the Zoning Ordinance. The Council also required that the new
ordinance contain language that addressed the cultivation of marijuana and a
requirement that each collective have a compassion program for qualifying
patients

Staff convened a meeting with the four permitted collectives to review the
framework for the new regulations. At that meeting the collectives were in
support of the following requirements of the new regulations:

Require criminal background checks on collective operators

Change the nomenclature from medical marijuana "dispensary" to
"collective"
Require that collectives be organized as a nonprofit and be in compliance
with Proposition 215, California Health & Safety Code Section 11362 7
and California State Attorney General Guidelines for marijuana grown for
medical use
Establish a limit on the total square footage of a collective; not to exceed
4,500 square feet
 Allow the on-site cultivation of marijuana
Establish a cap on the square footage allowed for on-site cultrvation; no
more than twenty-five percent (25%), but in no case more than 1,500
square feet nor greater than ten feet in height.
Retain the numerical limit; no more than four collectives within the
boundaries of West Hollywood
Maintain the location criteria, collectives shall not be established within
500 feet of sensitive land uses and within 1000 feet of another collective
within or outside the boundaries of West Hollywood
Establish a uniform compassion program for West Hollywood residents
Require collectrve operators to participate in regular meetings with City
Staff and West Hollywood Sheriffs Department

Amending the zoning ordinance and regulating medical marrjuana collectrves

under business licensing is a more effective approach. Not only does the
proposed ordinance incorporate all of the existing regulations it adds a number of
other requirements making it a tighter and more restrictive ordinance. The
proposed ordinance provides stringent adherence to existing state law in addition
to the guidelrnes set forth by the State Attorney General.

In August, the District Attorney and the Sheriff of Los Angeles County jointly sent
a cautionary letter to cities warning that, 'We have come to the conclusion that
over-the-counter sales of marijuana are patently rllegal under state and federal
law." (Attachment B) The letter fails to take account of the comprehensive and
thorough approach West Hollywood has taken since the passage of Proposition
215 to provide safe access to treatment that is determined medically necessary
by patients and their physicians. West Hollywood has worked closely wrth the
Sheriffs Department on this ordinance and it is not anticipated that there will be
any law enforcement issues with the collectives that are licensed under the
ordinance. While there may be a "marijuana dispensary proliferation
phenomenon in Los Angeles County", it is not occurring within the jurisdiction of
West Hollywood.

CURRENT MEDICAL MARIJUANA COLLECTIVES:

At present, there are four permitted medical marijuana collectives located within
the City of West Hollywood (Attachment C). However, only one of these four
collect~vescomplies with the location requirements.

LA Patients & Caregivers Group* 1 7213 Santa Monica Boulevard

only this location complies with location requirement
Medical Marijuana Farmacy 1 7825 Santa Monica Boulevard
Alternative Herbal Health Services1 7828 Santa Monrca Boulevard
Zen Healing Collective 1 8464 Santa Monica Boulevard
There is a pending dispute over whether the dispensary currently operating at
8921 Sunset Boulevard is operating legally. The City has informed the owner
that the dispensary is illegal and must be shut down; the owner has provided the
City with documentation which he contends demonstrate that it is operating
legally. The City is currently evaluating those documents, but has not yet come
to a conclusion. Nonetheless, the uncertain legal status of this dispensary does
not affect the validity of the negative declaration, in that staff believes that with
the continued imposition of the regulatory conditions being shifted from the
zoning ordinance to the business license ordinance, and the addition of new
conditions which serve to regulate these activities even more closely than at
present, the operation of a limited number of collectives --whether four or five --
will not have a significant effect on the environment.

CITY COUNCIL ACTIONS:

On March 7, 2005 the City Council adopted an urgency ordinance that

established a 45-day moratorium on the establishment of new medical marijuana
collectives in the City of West Hollywood

On April4, 2005 the City Council adopted an extension of the urgency ordinance
with expiration on March 7, 2006

On July 18, 2005 the City Council adopted an urgency ordinance that established
operating standards for existing medical marijuana collectives.

On March 6, 2006 the City Council adopted a one-year extension of the interim
urgency ordinance prohibiting the establishment of new medical marijuana
collectives in the City of West Hollywood.

On February 5,2007 the City Council adopted an amendment of the City of West
Hollywood Municipal Code to create a new land use category and location
criteria for medical marijuana collectives

On July 20, 2009 the City Council directed staff to bring forward a business
license ordinance that would regulate medical marijuana collectives with the
same requirements currently in the zoning code and to eliminate the regulations
in the Zoning Ordinance.

BUSINESS LICENSE COMMISSION REVIEW

Staff requested that the Business License Commission review the draft
ordinance and provide any input/comments to be taken back to City Council for
consideration. At the meeting, there was one main concern raised by the
Business License Commission, which was to clarify Section 5.70.040(3) to
specify that food included products sold for medical use, i e., brownies, suckers,
or anything that has a marijuana additive for medical consumption. The Business
L~censeCommission voted 5-0 in favor of the recommendation to the City
Councll with the one change as noted above.

PLANNING COMMISSION REVIEW:

At the Planning Commission meeting of October 15, 2009, three members of the
publlc spoke in support of staffs recommendation. One member of the publlc
supported the recommendation, but had concerns regarding compassronate
dlstributlon for people on a limlted income The Planning Commission had
questions about the number of collectrves allowed in the C ~ t yand was supportive
of the recommended amendment. The Planning Commission unanimously
approved the recomrnendatlon for City Counc~lapproval.

CONFORMANCE WITH VISION 2020.

This Item is consistent with the ongoing Core Values of Public Safety and
Quality of Residential Life.

EVALUATION.

Removing the CUP requirement for medical mar~juanacollect~vesfrom the

zoning ordinance and allowing collectives instead to operate as a permitted use
will give the City better regulatory control

ENVIRONMENTAL SUSTAINABILITY AND HEALTH:

West Hollywood is home to a disproportionately large percentage of persons who

suffer from illnesses for which marijuana diminishes suffer~ngand Improves
health, such as people with HIVIAIDS and senlors and others afflicted with a
variety of chronlc illnesses.

OFFICE OF PRIMARY RESPONSIBILITY:

City Manager

FISCAL IMPACT.
Attachment A. Ordinance No 09-p Amending the West Hollywood Municipal
Code
Attachment B: July 20, 2009, City Council Approved Staff Report
Attachment C: August 6, 2009 letter from Los Angeles County D~strictAttorney
Steve Cooley and Sheriff Lee Baca
Attachment D: Radius Map of Medical Marijuana Collectives
Attachment E: Business License Commission Review
Attachment F: Planning Commission Review
 ORDINANCE NO. 09

AN ORDINANCE OF THE CITY OF WEST HOLLYWOOD

CHANGING MEDICAL MARIJUANA COLLECTIVES
FROM A CONDITIONALLY PERMITTED USE TO A
PERMITTED USE IN CERTAIN COMMERCIAL ZONES
SUBJECT TO SPECIFIED RESTRICTIONS, REQUIRING
SUCH COLLECTIVES TO OBTAIN A REGULATORY
BUSINESS LICENSE, MAINTAINING THE CURRENT
MAXIMUM LIMIT OF FOUR COLLECTIVES IN THE
CITY AND LOCATIONAL RESTRICTIONS FOR NEW
COLLECTIVES AND AMENDING THE WEST
HOLLYWOOD MUNICIPAL CODE

The City Council of the City of West Hollywood does hereby ordain as follows:

Section I. Findings. Section 19.36.165 of the West Hollywood Municipal

Code currently establishes a land use category and regulations for medical marijuana
dispensaries, and consolidates the City's regulations for medical marijuana dispensaries
in the Zoning Ordinance. The City Council finds that the public interest would be better
served by regulating the day-to-day management and operations of medical marijuana
collectives through its regulatory business licensing ordinance. T h ~ ordinance
s tightens
the operating requirements for dispensaries, changes their nomenclature from
"dispensaries" to "collectives," shifts the regulatory provisions from the zoning ordinance
to the business license ordinance, maintains the cap of four collectives citywide and
retains existing locational restrictions for establishment of new collectives This
ordinance further eliminates the deadline for closure previously established for
nonconforming collectives in existence and operating continuously under the same
ownersh~pon or before January 16,2007.

Section 2. Pumose. The purposes of this Ordinance are to recognize and

protect the rights of qualified patients and primary caregivers through implementat~onof
California Health & Safety code Section 11362.5 (adopted as Proposition 215, the
"Compassionate Use Act of 1996") (the "Act") and any State regulations adopted in
furtherance thereof, and to promote the safe use of and the safe and affordable access to
medical marijuana pursuant to the Act. In support of these purposes, the Council
recognizes that the assistance of medical marijuana collectives, as defined herein, may in
some situations h e .l .
~
promote that safe and lawful access to and consistent and affordable
distribution of medical marijuana as permitted by the Act. In further support of the stated
-purposes,
- the Council additionally recognizes
- that IawfUl remuneration consistent with
state law may occur between qualified patients and primary caregivers, including those
qualified patients and primary caregivers who associate collectively or cooperatively to
produce medical marijuana in accordance with state law. Standards are required to assure
that the operations of medical marijuana collectives are in compliance with the Act and
any State regulations adopted in furtherance thereof, and to mitigate the adverse
secondary effects from operations of collectives. The City Council finds that the

ATTACHMENT A
numerical limits on medical marijuana collectives provided by this Ordinance are
necessitated by the small size of the City and the proximity of these uses to residential
zones, schools and parks; and further, that the limit is reasonable and not an obstacle to
the implementation of Proposition 215. This Ordinance is enacted as a health and safety
measure pursuant to the City's police powers as prescribed in Art. XI, Sec. 7 of the
California Constitution. Nothing in this Ordinance shall permit an activity that is
prohibited by the Act, nor is it intended to interfere with a patient's right to cultivate,
possess or use medical marijuana as provided for in California Health & Safety Code
Section 1 1362. Nothing contained in this Ordinance shall excuse, facilitate or promote a
violation of federal law.

Section 3. Section 5.08.010 of T~tle5, Chapter 5.08 of the West Hollywood

Municipal Code is amended by adding in alphabetical order a new category (and
renumbering the ensuing categories accordingly) as follows.

17. Medical Marijuana ~ o l l e c t i v e ' ~

Section 4. Chapter 5.70 is hereby added to Title 5 of the ~ e s t ~ o l l ~ w o o d

Municipal Code to read as follows:

. _ Chapter 5.70
.*

MARIJUANA
MEDICAL COLLECTIVES
* ,
5.70.010 Definitions. '-
..
, . , - /

For purposes of thjschzifiter, a " ~ ~ d i cmkrijuana

al collective" means a collective,
cooperative, association or simg&:entity that cultivates, distributes, dispenses, stores,
exchanges, processes 7-. delivers, makes available or gives away marijuana in the City for
medical purposqs to qualified:patients, or primary caregivers of qualified patients
Health-& Safety Code Section 11362.5 (adopted as Proposition 215, the
"Cornpasiionate Use Act of 1996" or any state regulations adopted in furtherance
there6f;including ~ e a l t h& Safety'Code Section 11362.7 et seq. (adopted as the
"Medical-Marijuana Prograp Act"). The word "marijuana" shall have the same meaning
as the definition of that wor&in Health & Safety Code Section ll018. Nothing in this
section shall be'interpreted
. to conflict with the foregoing provisions of the Health &
,I

Safety Code. - . - ,'J;

, : - .
...
' .,

5.70.020 Application Information.

In addition to the information prescribed by the Director pursuant to the authority

set forth in Section 5.08.040, all applications for a license to conduct a medical marijuana
collective shall contain the following information.
 1. In the event the applicant is not the owner of record of the real property upon
which the collective is, or is to be, located the application must be accompanied by a
notarized statement and consent from the owner of the property acknowledging that a
collective is or will be located on the property. In addition to furnishing such notarized
statement, the applicant shall fum~shthe name and address of the owner of record of the
property, as well as a copy of the lease or rental agreement pertaining to the premises in
which the collective is or will be located.

2. A security plan, including but not limited to l~ghting,alarms and security guard
arrangements.

3. An executed release of liability and hold harmless in the form set forth in the
City's application form.

4. A description of the procedure for docu&knting the source'of the marijuana to

be dispensed by the collect~ve.If the marijuana 1s cultivated off-site, documentation that
the off-site location is compliant with the zoning regulations of the jurisdiction in which
11 is located. . . .
5. Text and graphic materials show~ngthe site in the context of the immediate
. .
ne~ghborhoodand floor plan of the facility.

6. A description of the screening, registration and validation process for

qualified patients. , .
%,

7. A descrietibn of qualifiid patient records acquisition and retention procedures.

8. A descr$tioh of th6process for tracking medical marijuana quantities and

inventory controls, including on-site cultivation (if any), processing and medical
. .
marijuana products ieceivkd from outside sources.
.' ., . . ? \
, ,
.
9 . ~A description ofmeisures taken to minimize or offset energy use from the
cultivation' or processing of medical'marijuana.
. ;\.
' <>.

10. A descr~~tion:of chemicals stored or used on-site and any effluent proposed
to be discharged,irito. th2city3s
, wastewater or stormwater systems.

11. ~uthorizit'ionfor the City to verify the information and representations

contained in the application.

5.70.030 Criteria for Issuance of a License.

1. The applicant, and any existing or prospective manager, must be at least

twenty-one years of age.
 2. The applicant, or any existing or prospective manager, must not have had
a similar type of license previously revoked or denied for good cause within the
immediately preceding two years prior to the license applicat~on.

3. The applicant and proposed manager shall undergo a background

mvestigation by the Los Angeles County Sheriffs Department. Neither the applicant nor
any proposed or prospective manager or employee shall have been convicted of

(a) Any offense relating to possession, manufacture, sales, or

distribut~onof a controlled substance, with the exception of marijuana related offenses;
,
(b) Any offense involving the use of force or violence upon the person
of another;
\ \ . ,
(c) Any offense involving theft, Gaud, dishonesty or deceit.
, ,

For purposes of this paragraph 3, a conviction'includes a plea or verdict of guilty or a

conviction following a plea of nolo conrendere. - ,

4 The location for which the license is spught shall not be located within
five hundred feet of a public or private day care center or school, or a public park, and
othenv~secomply with Section 19.36.1'65; except.the specific operators open and in
continuous operation at the same location,on or prior to ~a>uary16,2007.
\ '
The locition for.$hich the'liceyse is sougkit i'i not located within 1,000
, i

5.
feet from any other premises operated by a'medical marijuana collective and otherwise
comply with Section '19.36.165, except the specific operators open and in continuous
operation at the same location on ofpiior to January 16,2007.
... . ,
I'

6. . There shall be no more than four collective business licenses issued at any
one time: Priority cbnsideration for the first four licenses issued in this category shall be
given tbbthe operators that were'open and in continuous operation as of January 16,2007.
In the ev&it,that fewer thw four c~llectivesare operating under valid licenses at any
time, coniidkration for additional licenses will be given in the order prospective
applicants Liplaced on a'wlt list to be maintained by the City.
. ,-
7. Thk applicant must provide a copy of a valid seller's permit issued by the
California Board of ~4ualization.

5.70.040 Operating Requirements.

All collectives in the City shall operate in conformance with the follow~ngoperating
requirements:

1. Security shall comply with the following minimum standards:

 Collectives shall provide adequate security and lighting on-
I.
site to ensure the safety of persons and protect the premises from theft at
all times.
..
All security guards employed by collectives shall be
11.
licensed and possess a valid Department of Consumer Affairs "Security
Guard Card" at all tlmes. Collectives shall not employ securlty guards who
possess firearms or tasers.
...
111. Collectives shall provide a neighborhood security guard
patrol for a two-block radius surrounding the collective during all hours of
operation

2 No recommendations for medical-marijuana shall be issued on-site.

~.
. ,
3. There shall be no on-site sales'bf alcohol or tob8cc0, and no on-site
consumption of marijuana (including food containing marijuana as an ingredient),
alcohol, or tobacco by patrons or employees.". '.: ."

* '., >.,'
"
- ,
4. . . shall be limitedto: Monday - Saturday, 10.00
Hours of operation
a.m. - 8.00 p.m. and Sunday noon - 7.00 p:m.
. - j .

~.
5. Collectives shall~$nlydisPehsk.rqedi'cal marijuana to qualified
- ,.: ,
patients and their caregivers.8~defined by'California Health and Safety Code Section
11362.5 (~ro~osition,215) 'and&y state r&&u1+t1onsadoGted in furtherance thereof,
mcluding Health &.&f6ty Code Section 113i62.7 et seq. (adopted as the "Medical
Marijuana Prograin'&tn) and wl?o:are members of the collective. This shall include
possession of a valid 'd2ctor's
,- rice-iuiicndatioh;
' , ... ,
pot more than one-year old, for medical
~

marijuana.use, by the patient.. , -. -...,

-_
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', :.- 6. " '.;~olle?ti~ks,shall

c-
L.'C..
notify patrons of the following verbally and
through posting of a sign.in a c&spicuous location readily visible to persons entering the
premises: .,
'
_
. .
%,>,

i.
'
- $
Use of medical marijuana shall be lim~tedto the patient
idiiitified'on the doctor's recommendation. Secondary sale, barter or
diskibtition of medical marijuana is a crime and can lead to attest.
..
n. Patrons must immediately leave the site and not consume
medical marijuana until at home or in an equivalent private location.
Collective staff shall monitor the site and vicinity to ensure compliance.
...
111. Forgery of medical documents is a felony crime.
 iv. Entry into the premises by persons under the age of 18 is
prohibited unless they are a qualified patient and accompanied by a parent
or legal guardian.

7. Collectives shall only provide marijuana to an individual in an

amount consistent with personal medical use.

8. Collectives shall not store more than two hundred dollars

($200.00) in cash reserves overnight on the premises and shall make at least one dally
bank drop that includes all cash collected on that business day.

9. Any patient under 18 years of age shall be accompanied by a

parent or legal guardian.
, .
10. Collectives shall provide law e$orcement and all neighbors within
100 feet of the collect~vewith the name and phone n h b e r of an on-site copnunity
relations staff person to notify if there are operational problems with the estiblishment
~*
. .,
11. Collective operator(s) must attendregular meetings with the Los
Angeles County Sheriffs Department and City public Safety Division staff to review
public safety issues associated with t$e operations. :
.......
, _, .>
. -.. - . .
12. Collectives shallidispenie~marijuanaato, then members only from
-. , ,
the following sources. . . . . ., ".,
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.
I' . .. -,
. . ...... . .. '
~

/ . Limited cult&adon of marijuana on-site is permitted. The

,I.
space devoted to,du~tivation;hall not exceed twenty-five percent (25%) of
the tota1.floor $$in .no-*.
c a s h o r e than 1,500 square feet nor greater

. I,'
a__
.. :.. ..:,.
,;.... ,>,

"
.
ii
_
.than ten feet in height. -.: .. .>, :,
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A

'From an off-site location cultivated by the collective in

., accordance with ipplicable zoning regulations in the jurisdiction in which
.-?> it is cultivated. '.
,, -. .
., . .
- .>.
.
iii.;. From an individual qualified patient who is a member of
the colle<tive. The patient may receive monetary compensation only in
accordance with Health & Safety Code Section 11362.765(c).

iv. Collectives shall not acquire marijuana from persons who

are not constituent members of the collective.

13. West Hollywood City Code Enforcement Officers, West

Hollywood Sheriffs Deputies or other agents or employees of the City requesting
admission for the purpose of determining compliance with these standards shall be given
unrestricted access.
 14. Collectives shall comply with the provisions of Health & Safety
Code Section 11362.5 (adopted as Proposition 215, the "Compassionate Use Act of
1996") or any State regulations adopted in furtherance thereof.

15 Collectives shall develop and implement a program subject to

approval of the City to provide subsidized medical marijuana to income eligible patients,
("'compassion program") In accordance with the following criteria:

i. Minimum 25% discount to all qualified patients based upon need.

i~ Collectives shall not be obliged to provide more than 100 grams per month
to eligible patients.
iii. Progr am administration
Social service provider to qualify,patien& on an annual basis
Patients will be provided with a letter as proofof eligibility that
expires one year after the date itis issued . .,
Collectives will accept eligible patients and keep arecord of
qualified compassion patients , ~

iv OnsiteIInstant Medical and ~inincial , Need , Eligibility

. criteria-'
SSDI ..- .-
a Medi-Cal . . .
.
..
~nem~lo~ecl‘withverification
, ,.-
,

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v
Social Service Agency ~ k r i f i e d ~ e d i c a l l ~ i n a n cNeed
i a l Eligibility
= Section 8 housing~.~erific~ti& . .
;i00%-inc6me bel&~?de;al Poverty Level
:. proof of disability - k .
'' ..
Medical ?ekd such as &kina1 .\
vi. ~ e s l d e i t ~ , ~ e ~ d i i ,;~- & k p t
illness, cancer treatment, etc.
~

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. .'. ~ e 3 t : ~ ~ l l & < oresidents
d only
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16. .~olle~tives,shall have a responsible person on the premises to act
as mant!iger and supervise,eyployees~atall times during business hours. Such manager
shall belicensed
.. pursuant,to,~ecti6ns
5.04.050 and 5.08.040.
-.5 7 .
- ,

~ o ~ i e c t i v shall
e s occupy a space not to exceed 4,500 square feet in
size. ~,
.. . .*,:... .

18. Collectives shall be organized as nonprofit or not-for-profit

cooperative, collective or collaborative associations whose constituent members qualify
as "primary caregivers" or "qualified patients" within the meaning of California Health &
Safety Code Section 11362.7 etseq. These associations shall be formed for the benefit of
their members and shall require membership applications and verification. The
organization shall verify status as a caregiver or qualified patient, maintain membership
records, track expiration of recommendations, and refuse membership to those who dlvert
marijuana for non-medical use. Members shall agree not to distribute the marijuana to
non-members or to use the marijuana for non-medicinal purposes. Collectives shall only
acquire marijuana from constituent members (patients andlor caregivers) and only then
allocate it to members of the group.

5.70.050 Duration of Marijuana Collective License - Renewal.

All licenses issued pursuant to this chapter shall expire one year after the date of
Issuance; provided, however, that a license may be renewed pursuant to Section 5.08.130
for additional one-year periods upon approval of an application for renewal that compl~es
with all provisions of this Title.

5.70.060 Assignment of License Prohibited.

The assignment of or attempt to assign any license issued h s u a n t to this chapter

is unlawful and any such assignment or attempt to assigna license s@ll render the license
null and void.
',. . ., .
5.70.070 Noncompliance Prohibited. ..

No person or entity shall dis~ense,distribute;'sell; convey, exchange or give away

medical marijuana in the City except in cofnpliance wi$.the
... * provisions of this chapter
and Section 19.36.165 of this Code.': ' I, ..
,
\
L .
-,
- 19.36.165
Section 5. Section ..... of.$tle
'i. .>
19;Chaqier 19.36-is amended in its entirety
to read as follows- . + . '.. '\.~ ,.- .- f
# '
-..-' ,
, -.
a-.
Section 19.36;165 Medical ~ a r i j u a n Collectives.
"
' .-.
i - - .
8 .
, ., .
A. Definitions. ~or.~uiposes~of-this:sec~n, a "medical marijuana collective"
means a collective; coop&ativk, association or similar entity that cultivates, distributes,
dispenses:itores, &change's,;pro,cesses, delivers, makes available or gives away
marijuha in the City foi?medical purposes to qualified patients, or primary caregivers of
qualified patients pursuint.to ~eiltii;&Safety Code Section 11362.5 (adopted as
Propositiok215, the " ~ o & ~ a ~ s i o nUse
a t e Act of 1996") or any state regulations adopted
in furtheraick'thereof, includ;mg Health & Safety Code Section 11362.7 et seq. (adopted
. .. .
as the "~edic'alMarijuanaProgram Act"). The word "marijuana" shall have the same
meaning as the definiti,on-ofthat word in Health & Safety Code Section 11018. Nothing
in this section shall be'interpreted to conflict with the foregoing provisions of the Health
& Safety Code. For purposes of this section, the word "collective" shall refer to the same
uses and activities referred to as "dispensaries" in the prior iteration of this section.

B . Location Criteria. A proposed medical marijuana collective shall he located in

compliance with the following requirements:
1 The use shall not be located within a 1,000-foot radius of any other medical
marijuana collective located within or outside the city.
 2 The use shall not be located within a 500-foot radius of a church, temple, or
other places used exclusively for religious worship, or a playground, park,
child day care facility, or school that is located within or outside the city For
the purposes of this requirement, "school" shall mean any property containing
a structure which is used for education or instruction, whether public or
private, at grade levels preschool and kindergarten through 12.
3 The collective shall have its primary frontage on one of the following
commercial streets: Santa Monica Boulevard, Sunset Boulevard, La Cienega
Boulevard, Melrose Avenue, Beverly Avenue, La Brea Avenue or Fairfax
Avenue. The use shall not have its primary frontage. on a local residential
street providing local circulation.

C. The exterior appearance of a collective shall be c6mpatible with commercial

structures already constructed or under construction within the immediate neighborhood,
to ensure against blight, deterioration, or substantial diminishment or impairment of
property values in the vicinity and shall comply with all other applicabli pioperty
development and design standards of the ~u6ici:al Code. ;. , ,, .,
i \
, ,' (; r

D. No more than four (4) medical marijuana collectives shall be permitted to

operate in the City at any time. Notwithstanding the forkgoing, a medical marijuana
collective that was (i) open and in ope?ati$ on January 1.6,2007 under the same
continuous ownership and at the same,i6cation and (ii) d6es hot meet the location
requirements of this section, shall be allowed to'continue operation in accordance \nth
the regulations for non-c<nfo@ing l a n d b e s i n Section '19.72.050 subject to compliance
with the standards of ~ h a g t e 5:70:,,Any
r cb~~ective
that does not meet the location
requirements of this skition and ii discontinqe$ or has ceased operations for 30 days or
more shall not be rk:established.on the site andany further use of the site shall comply
with all applicable provisions'of,the ~ k i c i ~ a l ~ 6 Any
d e .collective that was (i) open
and in operitionon ~anuar$,l6,2007under.thesame continuous ownership and at the
same location arid (ii) d?es'not meet the location requirements of this section shall not be
permitted to change Ownership or control without losing the rights afforded by this
paragraljh D; any such ;hwge in ownership or control shall result in the immediate
discontinuance of the colleciive.
4' .,
..'
i

Section 6. ,~ection19.10.030,Table 2-5, Allowed Uses and Permit Requirements

for Commercial and public Zoning Districts, of Title 19, Chapter 19.10 of the West
Hollywood Municipal Code is amended to read as follows:

PERMIT REQUIRED BY ZONE

LAND USE PDCS Specific Use
CN CA CR PF
SSP Regulations -
Medical
-- -- 19.36.165, Chap.
Marijuana P P P P
Collectives 5.70
 Section 7. The definition of "Plant Nurseries and Garden Supply Stores" in
Section 19.90.020 of Title 19, Chapter 19.90 is amended to read as follows:

Plant Nurseries and Garden Supply Stores. Commercial agricultural

establishments engaged in the production of ornamental plants and other nursery products
grown under cover or outdoors. Cultivation of marijuana for medicinal or any other
purpose is prohibited. Includes stores selling these products, nursery stock, lawn and
garden supplies and commercial scale greenhouses. The sale of house plants or other
nursery products entirely within a building is also included under "General Retail
Stores." Home greenhouses are addressed under "Residential ~ c c e s s o Uses
r ~ and
Structures."

Section 8 Severability. If any part or bf '&is Ordinance or the

application to any person or circumstance is.held --- invalid, the remainder of this
Ordinance, including the application of such part of provision to .other persons or
circumstances, shall not be affected and shall continue in full force and-effect. To this
end, the provisions of this Ordinance are severable ,v.,

Section 9. Notwithstanding the provisions of,sul;paragraph 17 of Section

5.08 010 of the Municipal Code, a public hearing shall'not be required for the initial
business licenses issued pursuant to the, provisions
, of this Ordinance.
- .:,

PASSED, APPROVED A N D A- .D O P T E.D

, .~~~S
r , , --- d a y o f ' ,2009
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'I " ., . .- MAYOR
ATTEST., . ~ ;...\,:" . r " ,
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ClTY COUNCIL
UNFINISHED BUSINESS

SUBJECT: MEDICAL MARIJUANA DISPENSARY REGULATION

INITIATED BY: DEPARTMENT OF THE CITY MANAGER

Joan English (Assistant City Manager)
Lisa Marie Belsanti (Senior Management Analyst@

COMMUNITY DEVELOPMENT DEPARTMENT

Anne Browning Mclntosh (Community Development Director)
John Keho (Planning M a n a g e r a L
Laurie Yelton (Associate Planner)

DEPARTMENT OF PUBLIC WORKS

Oscar Delgado (Director)
Jeff Aubel (Commercial Code C~mplianceManager)

STATEMENT ON THE SUBJECT:

The City Council will consider directing staff to create a new category of license
under the West Hollywood Business License ordinance regarding- - the regulation
.
of medical marijuana dispensaries

RECOMMENDATIONS:

1. Direct staff to allow medical marijuana dispensaries as an automatically

permitted use, rather than a conditionally permitted use, in the zoning
code.

2. Direct staff to bring foward a business license ordinance amendment with

the same requirements presently in the zoning ordinance relative to
medical marijuana dispensaries, adding requirements such as criminal
background checks and compliance with State Attorney General
Guidelines.

3. Give staff direction to waive the location requirement for all permitted
medical marijuana dispensaries open and in continuous operation since
January 16,2007 and keep the numerical limit at four dispensaries.

4. 'Give staff direction to add language that defines any facility used for the
growth or cultivation of marijuana plants as a medical marijuana
dispensary.

A P C L I
DA ITEM 4.B
BACKGROUND AND ANALYSIS:

In Ngvember, 1996, California voters enacted Proposition 215, called "The

Compassionate Use Act of 1996." The Act set forth the circumstances under
which marijuana may be prescribed, dispensed and used for medicinal purposes
in California as an exception to the laws prohibiting the sale and use of marijuana

West Hollywood is home to a disproportionately large percentage of persons who

suffer from illnesses for which marijuana diminishes suffering, such as people
with HIVIAIDS and seniors and others afflicted with a variety of chronic illnesses.
As such, the City has comported itself in conformance with Proposition 215.

Several years' ago, the City experienced a proliferation of medical marijuana

dispensaries throughout the City's commercial zones. As with many of the City's
commercial uses, several medlcal marijuana dispensaries were established in
close proximity to residentially zoned properties and sensitive land uses, such as
schools, parks and places of religious worship. Consequently, the City Council
took a number of actions to limit the impact of medical marijuana dispensaries on
the commun~tyand it has adopted regulations governing the location and
operation of the facilities.

City Council Actions:

On March 7, 2005 the City Council adopted an urgency ordinance that

established a 45-day moratorium on the establishment of new medical
marijuana dispensaries in the City of West Hollywood.
On April 4, 2005 the City Council adopted an extension of the urgency
ord~nancewith expiration on March 7,2006.
On July 18, 2005 the City Council adopted an urgency ordinance that
established operating standards for existing med~calmarijuana
dispensaries.
On March 6. 2006 the City Council adopted a one-year extension of the
interim urgency ordinance prohibiting the establishment of new medical
marijuana d~spensariesin the City of West Hollywood.
On February 5, 2007 the City Council adopted an amendment of the City
of West Hollywood Municipal Code to create a new land use category and
location criteria for medical marijuana dispensaries (Attachment A).

Zonina Ordinance Requlations:

The operating standards for medical marijuana dispensaries are currently

contained in the zoning ordinance. In summary, the zoning ordinance:

Requires that all medical marijuana dispensaries must obtain a major

conditional use permit (CUP) and come into full compliance with the
ordinance or they must cease operations on December 31,2009.
 Limits the number of medical marijuana dispensaries to four.
States that a dispensary shall not be located within a 1,000-foot radlus of
any other dispensary and that a dispensary shall not be located within a
500-foot radius of specified sensitive land uses.
Requires that dispensaries comply with enumerated standards and
conditions.

Current Medical Manruana Dispensaries:

At present, there are four permitted medical marijuana dispensaries located

within the City of West Hollywood (Attachment B). However, only one of these
four dispensaries complies with the location requirements.

None of the four existing dispensaries has yet obtained a CUP, but all four have
applied and their applications are on file with the Planning Division. In addit~on,
because three of the existing dispensaries are not compliant with the location
requirements, it is anticipated that unless the Council changes the regulations,
these three dispensaries must cease operations by December 31, 2009 at their
current locations. Hence, other possible operators have also applied for CUPSto
commence new dispensary operations, on the assumption that after January 1,
2010, there will be an opportunity to do so within the maximum 4 cap. As of July
1, 2009 five CUP applications have been submitted and are on file with the
Planning Division, and it is staffs intention to process them in the order received.
Also, a Zone Text Amendment (ZTA) filing has been received by one of the three
existing dispensaries that is out of compliance with the location requirements,
seeking to modify those requirements so that it may remain in business at its
current location

Finally, there is a new and unpermitted medical marijuana dispensary located at

8921 Sunset Boulevard. The prior occupant at that location, West Hollywood
Center for Compassionate Healing, was a medical marijuana dispensary that
was evicted from the premises by the landlord and has advised the C~tythat it
ceased operations at the location on April 29, 2009. (Attachment C). The
landlord has now opened a new dispensary on the premises, and contends that
he purchased the business from the prior operator. The City sent a letter on
June 9, 2009 (Attachment D) informing the property owner to cease operations
immediately and staff and the City Prosecutor are taking steps to shut this
operation down.

Permitted Dispensarv Locations:

.' LA Patients & Caregivers ~ r o u p (* 7213 Santa Monica Boulevard

only this location complres with location requirement
Medical Marijuana Fannacy ( 7825 Santa Monica Boulevard
Alternative Herbal Health Services1 7828 Santa Monica Boulevard
Zen Healing Collective 1 8464 Santa Monica Boulevard
Medical Mariiuana Cultivation:

Currently, there are no facilities wtthin the City of West Hollywood used for the
growth and cultivation of marijuana plants. However, Section 19.90.020 in the
City's zoning ordinance (Attachment E) could be interpreted to allow for this type
of use. Staff is recommending that language be added to the current ordinance
or to a busmess license ordinance amendment to define any facility used for the
growth or cultivat~onof marijuana plants to be deemed a medical marijuana
dispensary.

Land Use versus Business License Requlation:

The City, as did most cities that elected to allow the operation of medical
marijuana dispensaries, initially decided to regulate dispensaries through a
discretionary land use process; i.e. by requiring a conditional use permit (CUP).
Now that we have had some experience w~ththe regulatory experience, staff
believes that there are some disadvantages to this approach. For example,
conditional use permits run with the land, meaning that once the CUP is issued
for a particular property, that property may be used for a dispensary regardless of
and despite changes in the ownership of the dispensary. Staff believes it is
undesirable to create such a right in any particular location.

Compounding this is the fact that there is no mechanism in the zoning ordinance
to determine the criminal background of any future operators for a use operating
under a CUP. This is of concern because in 2007 a cache of weapons was
found at a dispensary raided by federal law enforcement. Staff is particularly
concerned that property owners may be tempted to lease entitled locations to the
highest bidder because medical marijuana is so lucrative and this wuld lead to a
revolving door of operators. Consequently, land use regulation may not be
precisely tailored enough to address staffs concerns that unsc~pulouspotential
operators will be able to "game the system".

After careful review, staff and the City Attorney have determined that it may
better serve the City to remove the CUP requirement for medical marijuana
dispensaries from the zoning ordinance, allowing dispensaries instead to operate
as a permitted use and to amend the business license ordinance to require that
all operators obtain a regulatory business license following a public hearing.
Additional requirements may be imposed through the business license, such as
criminal background checks, compliance with the California State Attorney
General Guidelines (Attachment F), and compliance w~thCalifornia Health &
Safety Code section 11362.5 (Attachment G). Business licensing would offer the
City more regulatory tools to address the types of concerns that the dispensaries
raise, but would not sacrifice any of the requirements that are currently in place
through zoning regulation; indeed, as long as the City maintains a cap on the
number of dispensaries and location requirements that limit the possible
with C~tyregulations. Representatives from each facility willingly meet with City
staff and Sheriffs personnel to discuss impacts to the neighborhood and
implement changes to operating procedures when necessary.

The City's four permitted medical marijuana dispensaries have the appropriate
permits and have no outstanding neighborhood complaints. The unpermitted
dispensary at 8921 Sunset ~ouleiardhas received t& citations; one citation for
operating without a conditional use permit and another citation for exceeding the
numerical limit of four. The case has been referred to the C~tyProsecutor.

Crime statistics from each location for the last two years show relatively light
activity. From July 2007 - July 2009 there were the following incidents (all
locations are reflected in this summary):

Robbery - 1
Disturbances - 6
Fight - I
Attempted Use of Fake Identification- 1
Burglary - 1
Attempted Burglary - I
Lewd Conduct - 1
Alleged Assault - 1

CONFORMANCE WITH VISION 2020:

This item is consistent with the ongoing Core Values of Public Safety and
Quality of Residential Life.

OFFICE OF PRIMARY RESPONSIBILITY:

City Manager

FISCAL IMPACT:

None

ATTACHMENTS:

Attachment A: City Council adopted amendment of the Municipal Code

Attachment 6:Medical Marijuana Dispensaries and Sensitive Uses Radius Map
Attachment C: 8921 Sunset Blvd. April 29.2009 letter ceasing operations
Attachment D: 8921 Sunset Blvd. June 9,2009 cease and desist operations
Attachment E: Section 19.90.020 of the City's zoning ordinance
Attachment F: California State Attorney General Guidelines on Med~calMarijuana
Attachment G: California Health & Safety Code section 11362.5
 LOS ANGELES COUNTY
DISTRICT ATTORNEY'S OFFICE I SHERLFF'S DEPARTMENT

STEVE COOLEY. DISTRICTATTORNEY I LEE BAC4 SHERIFF

August 6,2009

Honorable Abbe Land

City of West Hollywood
8300 Santa Monlca Boulevard
West Holl ood, Californla 90069

Dear b l k a n d

For soddztlme, now our organlzatlons have been studylng the marlluana dispensary proliferahon
phenomenon in Los Angeles County

The prollferatlon of martjuana dlspensarles within certaln cltles in the County of Los Angeles has become
a topic of natlonal medla attentton (see "Wlth 'Med Pot' Ralds Halted. Selllng Grass Grows Greener" -
-
Wall Street Journal-July 23, 2009 and "L A.'s Reefer Revolution" - t@ Weekly July 16. 2009). The
number of medlcal marljuana dlspensarles in Los Angeles County presently exceeds the total number of
dispensaries of all other California countles combined

The proliferation of dispensaries has not been a problem In cltles that have adopted strlct ordinances that
require, as a condition of obtaining a buslness Icense, that the buslness comply wlth federal, state, and
local laws In thetr practices Enclosed wlth thls letter are examples of such ordinances from the citles of
Torrance, Redondo Beach, and Covlna. If your clty has not already done so, your clty may wish to
consider adoptlng a simllar ordinance

The District Attorney's ORce has carefully researched the law pertalnlng to the Compasstonate Use Act
and Medlcal Marljuan.3 Program, lncludlng the Californla Supreme Court's recent landmark dec~s~an in
People v Mentch (2008) 45 Cal 4" 274

We have come to the conclusion that over-the-counter sales of marljuana are patently lllegal under state
and federal law

We hope that the information provided In thls letter will help your clty in protecting the nghts of qualtfied
medical marijuana patlents as well as the restdents of your ctty

Very truly yours.

STEVE COOLEY
Distr~ctAttorney
Los Angeles County
-
/ )
S ~ n c ~ e l y ,,

Sherlff
Los Angeles County

Enclosures

c Los Angeles County Pollce Chiefs

Los Angeles County City Managers

CLARA SHORTRIDGE FOLTZ CRIMINAL JUSTICE CENTER 1 210 WESTTEMPLE STREET. SUITE 180W I LOSANGELES. C/\90012

ATTACHMENT C
Medical Marijuana Dispensaries and Sensitive Uses
June 16,2009
(Includes Childcare Facilities in Los Angeles)

'..i-'

,
Dispensaries
Schools
Religious Facilities.
Parks
ChildcareFacilities in West Hollywood.& kos Angeles
. .
* ... .
Dispensaries: F~
-
1.8464 Santa Monica Blvd. Zen Healing Coll&be
-
-.2.7825 Santa Monica Blvd. Medical Marijuanatarmac9
3 . 7 q 8 Santa Monica Blvd.- Alternative Herbal Health Services
4.7213 Santa Monica Blvd. - LA Patients and Caregivers Group

ATTACHMENT D
BUSINESS LICENSE COMMISSION SEPTEMEBER 22,2009
NEW BUSINESS

SUBJECT, MARIJUANA COLLECTIVE LICENSE

INITIATED BY: DEPARTMENT OF PUBLIC WORKS

Jeff Aubel (Commercial Code Compliance Manager)
Oscar Delgado (Director of Public Works)

STATEMENT ON THE SUBJECT

The Business License Commission is requested to provide input on a draft

ordinance for medical marijuana collectives.
n

RECOMMENDATION.

Comment on the draft ordrnance for Council Consrderation

BACKGROUND AND ANALYSIS:

In March of 2005, the Crty Council adopted an urgency ordinance in response to

a prolrferat~on of Medical Marijuana Dispensaries throughout the C~ty The
ordinance established a 45 day moratorium on new dispensar~es. The
moratorium was twice extended In February of 2007, the City Council adopted
an amendment to the zoning code establishing a new land use category for
Medical Marijuana Dispensaries. Currently, there are four permitted dispensaries
operating in the City. Additionally, there IS one unpermitted dispensary operating
at 8921 Sunset Blvd. Code Cornplrance staff and the City Prosecutor's Office are
taking actions to shut this operation down

On July 20, 2009 the City Council d~rectedstaff to bring forward a business
license ordrnance that would regulate medical marijuana d~spensar~es with the
same requirements currently in the zoning code. Council also required that the
new ordinance contain language that addressed the cultivatron of marijuana and
a requirement that each dispensary have a compassionate use program for
qualifying patients.

The City, as did most citres, inrt~allydecided to regulate dispensaries through a

discretionary land use process, i e. by requiring a conditional use permrt. Now
that we have had some experience wrth the regulatory experience, staff believes
that there are some disadvantages to this approach. For example, conditional
use permits run w ~ t hthe land, meaning that once the CUP is Issued for a
particular property, the use becomes vested, regardless of the ownership of the
dispensary. Staff believes it is undesirable to create such a right in any particular
location.

Further, there is no mechanism in the zoning ordinance to determine the criminal

background of any future operators for a use operating under a CUP. This is of
concern because in 2007 a cache of weapons was found at a dispensary raided
by federal law enforcement. Staff is particularly concerned that property owners
may be tempted to lease entitled locations to the highest bidder because medical
marijuana is so lucrative and this could lead to a revolving door of operators.
Consequently, land use regulation may not be precisely tailored enough to
address staffs concerns that unscrupulous potential operators will be able to
"game the system".

After careful review, staff and the City Attorney determined that it may better
serve the City to remove the CUP requirement for medical marijuana
dispensaries from the zoning ordinance, allowing dispensaries instead to operate
as a permitted use and to amend the business license ordinance to require that
all operators obtain a regulatory business license following a public hearing.

The new business license ordinance will change the nomenclature from Medical
Marijuana Dispensary to Medical Marijuana Collective and require that all
operators comply with Proposition 215. Additionally, it will require that applicants
undergo a criminal background check by the Department of Justice. Applicants
will be denied if they have a prior conviction for use of force or violence upon the
person of another, theft, fraud or any conviction relating to any drug other than
marijuana.

The location criteria will remain the same and require that collectives not be
located within 1000 feet of each other or within 500 feet of any school, day care,
park or house of worship except the specific operators in operation at the same
location prior to January 16, 2007. Additionally, there shall be no more than 4
collectives at any one time operating in the City. Priority for the first 4 licenses
shall go to the collective operators that were in operation prior to January 16,
2007.

Operating requirements under the new ordinance state that collectives shall
submit a security operations plan that will include security patrols for a two block
radius in the surrounding neighborhood. Security guards employed by the
collective must be licensed by the State of Cal~forniaDepartment of Consumer
Affairs and may not carry a firearm or a tazer.

Collectives shall not dispense to any person that does not have a valid doctor's
recommendation and shall not allow patients to med~cateon the premises or in
the surrounding neighborhoods Operators shall also provide a phone number of
an on-site community relations person to law enforcement and neighbors within
100 feet to notify the collective of any problems or complaints Cultivation of
marijuana under the new ordinance shall be l~mited25 percent of the total floor
area not to exceed 1500 square feet or greater than 10 feet in height.

Staff asks that the Commiss~onreview the draft ordinance and provide any
inputlcomments to be taken back to City Counc~lfor consideration.

CONFORMANCE WITH VISION 2020.

This item is consistent with the ongoing Core Values of Public Safety and
Quality of Residential Life.

OFFICE OF PRIMARY RESPONSIBILITY:

Department of Public Works, Commercial Code Compliance Division

FISCAL IMPACT

None

ATTACHMENTS:

A. Draft Ordinance
6.City Counc~lStaff Report
C. Councll Minutes for Monday, July 20, 2009
PlANNlNG COMMISSION October 15, 2009
PUBLIC HEARING

SUBJECT: AMENDMENT TO THE ZONING ORDINANCE

REGARDING MEDICAL MARIJUANA DISPENSARIES

INITIATED BY, DEPARTMENT OF COMMUNITY DEVELOPMENT

(Laurie Yelton. Associate Planner)

STATEMENT ON THE SUBJECT

The Plannrng Commission will hold a publ~chearlng on a Clty-in~tiatedZone Text

Amendment to change medical marijuana d~spensariesfrom a conditionally permitted
use to a permitted use in certain commercial zones subject to specifled restrictions,
requiring such dispensaries to obtain a regulatory byiness license, maintalnlng the
current maxlmum limit of four dispensaries, locatlonal restrictions for new dispensaries,
changing the nomenclature from dispensary to collective, and amending the affected
sectlons of the West Hollywood Municipal Code (WHMC).

RECOMMENDATION

Staff recommends that the Commission hold the public hear~ng,consider all pertinent
testimony and adopt the following:

1) Resolution No. PC 09-854 "A RESOLUTION OF THE PLANNING

COMMISSION OF THE CITY OF WEST HOLLYWOOD, RECOMMENDING TO
THE CITY COUNCIL ADOPTION OF A NEGATIVE DECLARATION AND
APPROVAL OF ZONE TEXT AMENDMENT 2008-006 TO CHANGE MEDICAL
MARIJUANA DISPENSARIES FROM A CONDITIONALLY PERMITTED USE
TO A PERMITTED USE IN CERTAIN COMMERCIAL ZONES SUBJECT TO
SPECIFIED RESTRICTIONS, REQUIRING SUCH DISPENSARIES TO OBTAIN
A REGULATORY BUSINESS LICENSE, MAINTAINING THE CURRENT
MAXIMUM LIMIT OF FOUR DISPENSARIES, LOCATIONAL RESTRICTIONS
FOR NEW DISPENSARIES, CHANGING THE NOMENCLATURE FROM
DISPENSARY TO COLLECTIVE, AND AMENDING THE WEST HOLLYWOOD
MUNICIPAL CODE. " (EXHIBIT A)

BACKGROUND

Application Information
A. Applicant: City of West Hollywood
B. Location. Citywide
C. ZoninglGeneral Plan: Commercial Zones
D. Environmental Status: Negative Declaration
E. Publ~cNotice. The public hearing held on October 15, 2009
was advertised as requlred by the WHMC.
Page 1 of 7

ATTACHMENT F
Californ~aEnvironmental Quality Act (CEQA)
The proposed changes have been determined to be unlikely to result in any potentially
significant impacts, and a Negative Declaration has been prepared pursuant to the
requirements of the CEQA The Negative Declaration is attached to this report as
Exhibit B.

Histon/
In November. 1996, California voters enacted Proposition 215, called "The
Comuassionate Use Act of 1996 " The Act set forth the circumstances under which
marihana may be prescribed, dispensed and used for medicinal purposes in California
as an exception to the laws prohibiting the sale and use of marijuana

Several years ago, the City experienced a proliferation of medical marijuana

dispensaries throughout the City's commercial zones. As with many of the City's
commercial uses, several medical marijuana dispensaries were established in close
proximity to residentially zoned properties and sensitive land uses, such as schools,
parks and places of religious worship Consequently, the City Council took a number of
actions to limit the impact of medical marijuana dispensaries on the community and it
has adopted regulations governing the location and operation of the facilities.

On March 7, 2005, the City Council adopted an urgency ordinance that established a
45-day moratorium on the establishment of new medical marijuana dispensaries in the
City of West Hollywood. On April 4, 2005 the City Council adopted an extension of the
urgency ordinance with expiration on March 7, 2006. On July 18, 2005 the City Council
adopted an urgency ordinance that established operating standards for existing medical
marijuana dispensaries. On March 6, 2006 the City Council adopted a one-year
extension of the interim urgency ordinance prohibiting the establishment of new medical
marijuana dispensaries in the City of West Hollywood. On February 5, 2007 the City
Council adopted an amendment of the City of West Hollywood Municipal Code to
create a new land use category and location criteria for medical marijuana d~spensaries.

The City, as did most cities, initially decided to regulate dispensaries through a
discretionary land use process, i.e. by requiring a conditional use permit Now that we
have had some experience with the regulatory experience, staff believes that there are
some disadvantages to this approach. For example, a conditional use permit (CUP)
runs with the land, meaning that once the CUP is issued for a particular property, the
use becomes vested, regardless of the ownership of the dispensary. Staff believes it is
undesirable to create such a right in any particular location.

Further, there is no mechanism in the zoning ordinance to determine the criminal

background of any future operators for a use operating under a CUP. Staff is
particularly concerned that property owners may be tempted to lease entitled locations
-
to the hiahest bidder because medical mariiuana is so lucrative and this could lead to a
revolving door of operators. Consequently, land use regulation may not be precisely
tailored enough to address staff's concerns that unscruuulous potential ouerators will
be able to "game the system "
After careful review, staff and the City Attorney determined that it may better serve the
City to remove the CUP requ~rementfor medical marijuana dispensar~esfrom the
zoning ordinance, allowing dispensaries rnstead to operate as a permitted use and to
amend the business license ordinance to requlre that all operators obtain a regulatory
business license following a public hearing.

On July 20, 2009 the City Counc~ldirected staff to brrng forward a business lrcense
ordinance that would regulate medical marijuana dispensar~es w~th the same
requirements currently in the zonlng code and to eliminate the regulat~onsin the Zon~ng
Ordinance. The Council also required that the new ordinance contain language that
addressed the cultivation of marijuana and a requirement that each dispensary have a
compassionate use program for qual~fyingpatients.

Business License Commission Rev~ew

Staff requested that the Business License Comm~ssionreview the draft ordinance
(Exhibit D) and provide any inpuffcomments to be taken back to City Council for
cons~deration. At the meeting, there was one main concern raised by the Bus~ness
License Commission, which was to clarify Section 5.70.040(3) to specify that food
rncluded products sold for medical use, i.e., brownies, suckers, or anyth~ngthat has a
marijuana additive for medical consumption. One Business License Commissioner had
concerns about the maximum $200 cash limit, as there could potentially be multiple
cash drops throughout the day, and the person making the cash drops could
presumably be the target of potentral robbery. There were two public comments
supporting Staffs recommendation. The Bus~nessLicense Commissron voted 5-2
(Commissioner Barker recused and Comm~ss~oner Reichard excused) in favor of the
recommendation to the City Council with the one change as noted above.

ANALYSIS

D~scussion
As discussed by the City Council on July 20, 2009, the City finds that the public interest
would be better served by regulating the day-to-day management and operations of
med~calmarijuana collectives through its regulatory business licensing ordinance. The
revised ordinance would tighten the operating requirements for dispensaries, change
their nomenclature from "dispensaries" to "collectives," shift the regulatory provis~ons
from the zoning ord~nanceto the business license ordinance, maintain the cap of four
collectives citywide and retain existing locational restrrctions for establishment of new
collectives. The ordinance would further elim~natethe deadline for closure previously
established for non-conforming collectives in existence and operating under the same
ownership on or before January 16,2007.

The purpose of the proposed Ordinance is to recognize and protect the rights of
qualified patients and primary caregivers through ~mplementationof California Health &
Safety Code Section 11362.5 (adopted as Proposition 215, the "Compassionate Use
Act of 1996") (the "Act") and any State regulations adopted in furtherance thereof, and
to promote the safe use of and the safe and affordable access to medical marijuana
pursuant to the Act. Standards are required to assure that the operations of medical
mar~juanacollectives are in compliance with the Act and any State regulations adopted
In furtherance thereof, and to mrtigate the adverse secondary effects from operations of
collectives. The City finds that the numerical limits on medical marijuana collectives
provided by this Ordinance are necessrtated by the small size of the City and the
proximity of these uses to residential zones, schools and parks, and further, that the
limit IS reasonable and not an obstacle to the implementation of Proposition 215. The
proposed Ordinance is enacted as a health and safety measure pursuant to the City's
police powers as prescrrbed in Art. XI, Sec. 7 of the California Constitution.

In order to accomplish the changes directed by the City Council, four changes are
proposed: 1 Definition from "Medical Marijuana Dispensary" to "Medrcal Marrjuana
Collective", 2. Definition of "Plant Nurseries and Garden Supply Stores", changing
Medical Marijuana Dispensaries from a condit~onallypermitted use to a permitted use
through a Business License, and an amendment to Section 19.36.165 of Title 19,
Chapter 19.36 of the West Hollywood Municipal Code.

Amendment to Definrtions
The definitron of "Medical Mariiuana Collective" in Section 19 90 020 of Title 19.
Chapter 19.90 of the West ~ollywoodMunicipal Code to read as follows:

Medical Marijuana Collective For purposes of thrs chapter, a "medrcal

marijuana collective" means a facility where marijuana IS made
available for medrcal purposes in accordance with Health & Safety
Code Section 11362.5 The word "marijuana" shall have the same
meanrng as the definition of that word in Health & Safety Code
Section 11018

The definition of "Plant Nurseries and Garden Supply Stores" in Section 19.90.020 of
Title 19, Chapter 19.90 of the West Hollywood Municrpal Code is amended to read as
follows.

Plant Nurseries and Garden Supply Stores: Commercial agrrcultural

establishments engaged in the production of ornamental plants and
other nursery products grown under cover or outdoors. Cultivation of
marijuana for medicinal or any other purpose is prohibited. Includes
stores selling these products, nursery stock, lawn and garden
supplies and commercral scale greenhouses. The sale of house
plants or other nursery products entirely within a buildrng is also
included under "General Retail Stores." Home greenhouses are
addressed under "Residential Accessory Uses and Structures."

Amendment to Commercial Permitted uses

Sectron 19.10.030. Table 2-5, Allowed Uses and Permit ~equirements'forCommercral
and Public Zoning Districts, of Title 19, Chapter 19.10 of the 'west Hollywood Municipal
Code is amended to read as follows'
 PERMIT REQUIRED BY ZONE
LAND USE PDCS Specific Use
CN CA CR PF
SSP Regulations
Medical
-- -- 19.36.165,
Marijuana P P P P
Chapter 5 70
Collectives

Section 19.36.165 of Title 19, Chapter 19.36 is amended in its entirety to read as
follows:

Section 19.36 165 Medical Marijuana Collectives

A. Definitions. For purposes of this Ordinance, a "medrcal marijuana collectrve"

means a facility where marrjuana is made available for medical purposes in accordance
with Health & Safety Code Section 11362.5 et seq The word "marijuana" shall have the
same meaning as the defrnition of that word in Health & Safety Code Section 11018.
For purposes of this section, the word "collective" shall refer to the same uses and
activities referred to as "dispensaries" in the prior iteration of this section.

B. Location Criteria. A proposed medical marijuana collective shall be located in

compliance with the following requirements'
1. The use shall not be located within a 1,000-foot radius of any other medical
marijuana collective located within or outside the city
2. The use shall not be located within a 500-foot radius of a church, temple, or
other places used exclusively for religious worship, or a playground, park,
child day care facilrty, or school that IS located within or outside the city. For
the purposes of this requirement, "school" shall mean any property containing
a structure wh~chIS used for education or instruction, whether publrc or
prrvate, at grade levels preschool and krndergarten through 12.
3. The collective shall have its primary frontage on one of the followrng
commercral streets' Santa Monica Boulevard, Sunset Boulevard, La Cienega
Boulevard, Melrose Avenue, Beverly Avenue, La Brea Avenue or Fairfax
Avenue. The use shall not have its primary frontage on a local residential
street providing local crrculat~on.

C. The exterror appearance of a collective shall be compatible with commercial

structures already constructed or under construction within the immediate
neighborhood, to ensure against blight, deterioration, or substantial diminishment or
lmparrment of property values in the vicinity and shall comply with all other applicable
property development and design standards of the Municipal Code.

D. No more than four (4) medical marijuana collectives shall be permitted to

operate in the City at any time. Notwithstanding the foregoing, a medical marijuana
collective that was (i) open and in operation on January 16, 2007 under the same
continuous ownershrp and at the same location and (ii) does not meet the location
requrrernents of this sectron, shall be allowed to continue operation in accordance with
the regulations for non-conforming land uses in Section 19.72 050 subject to
Page 5 of 7
compliance with the standards of Chapter 5.70. Any collective that does not meet the
location requirements of this section and is discontinued, changes ownership or has
ceased operations for 30 days or more shall not be re-established on the site and any
further use of the site shall comply with all applicable provisions of the Municipal Code.

lnventorv of existins medical mariiuana dispensaries

The map shown below is an inventory of existing medical marijuana dispensaries in the
City of West Hollywood. As the map portrays, all of the dispensaries are located along
Santa Monica Boulevard.

1. LA Patients and Caregivers Group 7213 Santa Monica Blvd.

2. Alternative Herbal Health Services 7828 Santa Monica Blvd.
3. Medical Marijuana Farmacy 7825 Santa Monica Blvd.
4. Zen Healing Collective 8464 Santa Monica Blvd.

Code Compliance
The Code Compliance Division has indicated that they do not have any issues with
changing medical marijuana dispensaries from a conditionally permitted use to a
permitted use in certain commercial zones subject to specified restrictions and requiring
such dispensaries to obtain a regulatory business license.

WEST HOLLYWOOD STATUTES AND FINDINGS OF FACT

Zone Text Amendments

The Zoning Ordinance permits amendments to the Zoning Ordinance, whenever
required by public necessity and general welfare. Amendments to the Zoning Ordinance
may modify any procedures, provisions, requirements, or standards, applicable to the
Page 6 of 7
development, or use of property in the City. The Commission shall make a written
recommendation to the Council whether to approve, approve in modified form, or deny
the proposed amendment, based on the findings contained in Section 19.78.060
(Findings) of the Zoning Ordinance. The recommendation shall be by resolution carrled
by the affirmative vote of the majority of the Commission. The specific findings are
made in the proposed draft Resolution No. PC 09-854

EXHIBITS
A. Draft Resolution No. PC 09-854
B. Negative Declaration
C. Draft Ordinance
D Business License Commission Staff report dated September 22. 2009