Revised Draft (April 13, 2011)

MODEL ORDINANCE REGULATING

MEDICAL MARIJUANA DISPENSARIES IN LAKE COUNTY

Purpose

The purpose of this ordinance is to implement Proposition 215, codified at California Health and
Safety Code Section 11362.5 and known as the Compassionate Use Act of 1996, and also SB-420,
codified at California Health and Safety Code Section 11362.7-11362.83 and known as the Medical
Marijuana Program Act, a state law passed to clarify and help further implement the
Compassionate Use Act.

This dispensary ordinance is intended:

A. To help ensure that Lake County residents can safety obtain and use marijuana for medical
purposes where that medical use has been deemed appropriate by a physician in accordance with
California law.

B. To help ensure that the qualified patients and their primary caregivers who obtain or cultivate
marijuana solely for the qualified patient's medical treatment are not subject to arrest, criminal
prosecution, or sanction.

C. To protect citizens from the adverse impacts of irresponsible medical marijuana distribution,
storage, and use practices.

D. To establish a new section in the zoning ordinance pertaining to the permitted distribution of
medical marijuana in the County of Lake consistent with state law.

Definitions

The following words or phrases, when used herein, shall be given the following definitions:

A. “Medical marijuana dispensary” or “dispensary” means any storefront facility which distributes,
transmits, gives, or otherwise provides medical marijuana to qualified patients or primary
caregivers in accordance with California Health and Safety Code section 11362.5 through section
11362.83, inclusive, commonly referred to as the Compassionate Use Act of 1996 and the Medical
Marijuana Program.

B. A medical marijuana “collective” or “cooperative” means an organization that facilitates the

collaborative efforts of patient and caregiver members – including the allocation of costs and
revenues. A medical marijuana patient growing “collective" or “cooperative” that does not
operate as a storefront dispensary is exempt from the provisions of this ordinance.

C. “Physician” means a state licensed medical doctor or osteopath.

D. “Qualified patient” as used herein shall mean a person who has a State of California Medical
Marijuana Identification Card or a written recommendation to use marijuana for medical purposes
from a physician licensed to practice in the State of California and who is entitled to the protections
of Section 11362.5 of the California Health and Safety Code (Proposition 215, the Compassionate
Use Act of 1996).

E. “Primary caregiver” means the individual designated by a qualified patient to obtain, possess
and/or cultivate marijuana for the qualified patient, and who has consistently assumed
responsibility for the housing, health, or safety of that person.

F. “Planning Director” means the Director of Community Development, or an Assistant Planner

designated by the Director of Community Development.

G. “Attorney General’s Guidelines” means the August 2008 California Attorney General’s “Guidelines for
the Security and Non-Diversion of Marijuana Grown for Medical Use” and any subsequent medical
marijuana guidelines issued by the California Attorney General.

Dispensary License Required to Operate

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

Limitation on Number of Dispensaries and Term of License

A. As of the effective date of this Ordinance, fifteen (15) dispensaries shall be allowed and
granted Dispensary Licenses. Notwithstanding any other provisions of this ordinance, all the
dispensaries currently operating in commercial zoning districts that were operating on
September 15, 2009 (the effective date of the dispensary moratorium), shall be allowed to
continue operating during the application process and shall be granted licenses unless there is
clear and convincing evidence that they are not operating in accordance with California law, or
are not able to comply with this ordinance, or are located within six hundred (600) feet of a
school, or are generating an inordinate number of well-founded law enforcement calls, or cannot
pass a background check as set forth herein.

B. On an annual basis, upon payment of annual renewal fees, each dispensary license shall be
renewed by the County unless there is clear and convincing evidence that the dispensary is not
operating in accordance with California law or in substantial compliance with this ordinance, or
is generating an inordinate number of well-founded law enforcement calls, or cannot pass a
background check as set forth herein. If an existing licensed dispensary fails to renew its
license in a timely manner, after 15 days written notice from the County, during which time the
existing dispensary can renew its license, the license will become available for another
dispensary. Within 20 days after a dispensary license becomes available, the County will give
public notice and will accept applications for an available dispensary license for 60 days after
such public notice. If there is more than one applicant who passes a background check, the
applications shall be forwarded to the Planning Commission for a decision as to which
application to grant. If no one applies for an available dispensary license in the 60 day period,
the first to apply after said period shall have his/her application processed before any others are
considered.

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Limitation on Location of Dispensaries

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

License Application – Preparation and Filing

A. Application Filing. A complete Medical Marijuana Dispensary License application packet shall
be submitted, including all required fees. The application and all materials required by the County
shall be based on the requirements of this ordinance. All applications shall be filed with the
Planning Department, using forms provided by the County, and accompanied by the applicable
filing fees. It is the responsibility of the applicant to provide information required for approval of the
license. The application shall be made under penalty of perjury.

B. Eligibility for Filing. Applications may only be filed by the owner of the subject property, or by a
person or entity with a lease signed by the owner or duly authorized agent of the owner allowing
them to occupy the property for the use of a dispensary.

C. Filing Date. The filing date of any application shall be the date when the County receives the
last submission of information or materials required in compliance with the submittal requirements
specified herein.

D. Effect of Incomplete Filing. Upon written notification that an application submittal is incomplete,
the applicant shall be granted a 30 day extension of time to submit all materials required to
complete the application. If the application remains incomplete after the 30 days, the application
shall be deemed withdrawn, a new application shall be required, and the County shall so notify the
applicant. The time period for granting or denying an application shall be stayed during the period
in which the applicant is granted an extension of time.

E. Effect of Other Permits or Licenses. The fact that an applicant possesses other types of state or
County permits or licenses does not exempt the applicant from the requirement of obtaining a
Dispensary License.

Criteria for Review of Dispensary Applications by Planning Department

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

B. Criteria for Issuance. The Planning Director, or the Planning Commission on appeal, shall

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consider the following criteria in determining whether to grant or deny a Dispensary License.
1. That the applicant must be at least 21 years old and a resident of California.

2. That the proposed location of the dispensary is not in an area of high crime activity, based
upon crime reporting statistics maintained and published by the Sheriff’s Department.

3. That the applicant has not been convicted of a felony within the past ten (10) years.

4. That all required application fees have been paid.

5. That the applicant produces a copy of a valid seller’s permit issued by the State Board of
Equalization.

6. That the location is not prohibited by the provisions of this ordinance or any local or state law,
statute, rule or regulation, and that compliance with other applicable requirements of the County’s
zoning ordinance will be accomplished.

7. That the applicant will provide adequate lighting, a burglar alarm system monitored by a state-
licensed monitoring service, security cameras, and a safe, to ensure the safety of persons and to
help protect the premises from theft.

8. That the applicant has not knowingly made a false statement of material fact or knowingly
omitted to state a material fact in the application for a dispensary license.

Appeal from Planning Director’s Determination

A. Appeal to the Planning Commission. An applicant who disagrees with the Planning Director’s
decision to deny a Dispensary License, or with any other determination, may appeal to the
Planning Commission by filing an appeal pursuant to the requirements of the County Code.

B. Notice of Planning Commission Appeal Hearing. Upon the filing of an appeal pursuant to
subparagraph (A) above, the Planning Director shall provide public notice in accordance with the
notice provisions of the County Code.

C. Appeal to the Board of Supervisors. A decision by the Planning Commission may be appealed
to the Board of Supervisors. Upon the filing of an appeal, the Planning Director shall provide public
notice in accordance with the notice provisions of the County Code.

Suspension and Revocation by Planning Commission

A. Authority to Suspend or Revoke a Dispensary License. A Dispensary License issued under the
terms of this ordinance may be suspended or revoked by the Planning Commission when it
determines, based on evidence presented at a public hearing, that the licensee has substantially
violated the provisions of this ordinance or state law. Such action by the Planning Commission
may be appealed to the Board of Supervisors.

B. Written Notice of Suspension or Revocation. No license shall be revoked or suspended until

written notice of the intent to consider revocation or suspension of the license has been served
upon the licensee at least fifteen (15) days prior to the date set for the public hearing. A written
statement of the reasons for the proposed revocation or suspension shall be included in this

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notice. Notice may be given either by personal delivery to the licensee, or by depositing such
notice in the U.S. mail in a sealed envelope, postage prepaid (via regular mail and return receipt
requested), addressed to licensee at his/her address as it appears in the application for a
Dispensary License.

Transfer of Dispensary Licenses

A. License – Site Specific. A licensee shall not operate a dispensary under the authority of a
Dispensary License at any location other than the address of the dispensary stated in the
application for the license unless the licensee obtains an amendment to the Dispensary License
from the Planning Director.

B. Transfer of a Dispensary License. All Dispensary Licenses issued by the County pursuant to
this chapter shall be non-transferable without an amendment to the Dispensary License from the
Planning Director making the transferee the licensee. Such an amendment may be obtained only
if the proposed transferee files an application with the Planning Department in accordance with all
provisions of this chapter accompanied by the required application fee. Such an amendment and
transfer shall be granted under the same conditions as the original license. Such transfer shall be
granted unless the transferee cannot pass the background check or unless there is clear and
convincing evidence that the transferee does not intend to operate in accordance with California
law, or in compliance with this ordinance.

C. Request for Transfer with a Revocation or Suspension Pending. No Dispensary License may
be transferred and no amendment allowing transfer may be issued when the Planning Director has
notified the licensee in writing that the license has been or may be suspended or revoked.

D. Transfer Without Permission. Any attempt to transfer a Dispensary License either directly or
indirectly in violation of this section is void.

E. The action of the Planning Director denying a transfer amendment may be appealed to the
Planning Commission, and the Planning Commission’s decision may be appealed to the Board of
Supervisors.

Felony Convictions and Background Checks

No person who has been convicted of a felony within the past ten (10) years may be engaged
in the operation or financing of any dispensary. The Sheriff’s Department, at the request of the
Planning Director, shall conduct a live scan background check to determine that applicants have
not been convicted of such a felony.

Hours of Operation

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

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Other Operating Standards and Requirements

Dispensaries, once licensed, shall meet the following operational and safety standards for the
duration of the use:

A. Restriction on Membership. Membership in a dispensary shall be restricted to qualified patients

and their primary caregivers.

B. Restriction on Distribution to Non-Members. Dispensaries shall not sell or distribute marijuana

to non-members of the medical marijuana collective or cooperative.

C. No Alcohol Permits. Dispensaries shall not hold or maintain a license from the State Department
of Alcohol Beverage Control to sell alcoholic beverages.

D. Records. Dispensaries shall maintain records of all patients and primary caregivers served to
ensure that all persons are legally qualified under California Health and Safety Code Section
11362.5. Membership records shall be held as strictly confidential.

E. Security. Dispensaries shall provide adequate lighting, a burglar alarm system monitored by a
state-licensed monitoring service, and security cameras to ensure the safety of persons and to help
protect the premises from theft. The entrance into the dispensary shall be locked at all times with
entry strictly controlled. A dispensary shall have a safe on the premises for storage of cash and
medical marijuana.

F. Odors. Dispensaries should have sufficient ventilation and storage facilities so that no odor is
evident outside the facility.

G. Amount of Marijuana on Premises. Dispensaries shall have no more than fifteen (15) pounds
of trimmed and dried marijuana on the premises at any one time.

H. Edibles. Medical marijuana may be provided by a dispensary in an edible form. In addition, any
edible produced, provided, or sold at the facility which contains marijuana shall be so identified, as
part of the packaging, with a prominent and clearly legible warning advising that the product
contains marijuana, the type of marijuana if known, whether the marijuana used is bud, trimmings
or leaf, the quantity of marijuana used to produce each individual edible, and that it is to be
consumed only with a physician's recommendation. Edibles shall not count toward the dried
marijuana weight limit.

I. Sale of Live Plants. The sale of medicinal marijuana plants (clones, cuttings or seedlings) not
more than eighteen (18) inches high (measured from the top of the dirt or container) is
an approved activity.

J. Consumption on Site. No member of a dispensing collective or cooperative may consume

medical marijuana on the premises except for staff and employees who are medical marijuana
patients and have a need to medicate during their working hours at the dispensary.

K. Staffing. The premises shall be staffed with at least two people during hours of operation.

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L. Staff Training. Dispensary staff shall receive appropriate training for their intended duties to
ensure understanding of the rules and procedures regarding dispensing in compliance with state
and local law. The dispensary shall take those steps necessary to assure that any persons
assigned to provide security are properly trained.

M. Not-for-Profit Collective or Cooperative. A dispensary shall operate as a collective or

cooperative in accordance with state law and shall not cultivate or distribute medical marijuana
for profit. A dispensary may receive compensation for its actual expenses, including reasonable
compensation for services provided, or for payment of out-of-pocket expenses incurred in
providing those services. However, any such dispensary must pay applicable sales tax on such
sales or services and maintain the applicable seller’s permit or similar permit from the State
Board of Equalization or other applicable agency.

N. Visits by officials. The Planning Director may inspect a dispensary to ensure that the
amounts of marijuana on site conform to this Article and to state law and to ensure that all
performance and operating standards are complied with.

O. Access to Tax Records. Each dispensary shall allow the Planning Director to have access to
the dispensary’s state tax returns previously filed with the state for the purpose of verifying that
the dispensary is operating on a not-for-profit basis in accordance with the Attorney General’s
Guidelines. Tax returns shall be produced within 14 days after receipt of the Planning Director’s
written request.

P. Minors. Persons under the age of eighteen (18) shall not be allowed on the premises of a
dispensary unless they are a qualified patient or a primary caregiver and they are in the
presence of their parent or guardian. A dispensary shall not employ or allow to act as a
volunteer any person who is not at least eighteen (18) years of age.

Severability

If any provision of this Chapter, or the application thereof to any person or circumstance, is held
invalid, that invalidity shall not affect any other provision or application of this Chapter that can be
given effect without the invalid provision or application; and to this end, the provisions or
applications of this Chapter are severable.