Gardena Municipal Code Ch. 5.80 Medicinal Cannabis Delivery Service Businesses

The purpose and intent of this chapter is to implement the provisions of Chapter 26 (commencing with Section 26320) of Division 10 of the California Business and Professions Code, referred to as the Medicinal Cannabis Patients' Right to Access Act. This chapter also imposes a regulatory permitting scheme and reasonable regulations to protect the city's neighborhoods, residents, and businesses from negative impacts associated with the delivery of medicinal cannabis.

(Ord. 1877 § 4, 2025)

All definitions in Chapter 18.66 also apply to this chapter.

Any term defined in Title 4, Division 19 of the California Code of Regulations, that is not otherwise defined herein, shall have the meaning ascribed to it in that division.

"Business owner"

means the same as that set forth in Title 14 of the California Code of Regulations, Section 15003.

"Business permit"

means a permit for a medicinal cannabis delivery service business.

"CCR"

shall mean Title 4, Division 19 of the California Code of Regulations.

"Chief"

means the chief of police of the Gardena police department or the chief's designee.

"Disqualifying conduct"

means, except for subsection 1 of this definition, within the ten years preceding the date of the application, or in the case of revocation or suspension proceedings, within ten years preceding the date of the revocation or suspension notice, a person has had:

Within the three years preceding the date of the application, or in the case of revocation or suspension proceedings, within three years preceding the date of the revocation or suspension notice, the applicant has had a suspension or revocation of a commercial cannabis license, or any convictions or administrative citations that are final for operating an unlicensed commercial cannabis activity;

A violent felony conviction, as specified in Penal Code Section 667.5(c);

A serious felony conviction, as specified in Penal Code Section 1192.7(c);

A felony conviction involving fraud, deceit, or embezzlement;

A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

A felony conviction for drug trafficking with enhancements pursuant to Health and Safety Code Section 11370.4 or 11379.8;

A conviction for any controlled substance felony;

A conviction for the intentional and knowing sale of cannabis to a person under twenty-one years of age;

A conviction for the intentional and knowing sale of medicinal cannabis to a person without a physician's recommendation;

A conviction for the sale of cannabis without a license.

"Employee permit"

means a permit for an individual employed by a medicinal cannabis delivery service business.

(Ord. 1877 § 4, 2025)

A. No person shall engage in or conduct any medicinal cannabis delivery service business within the city without first obtaining a business permit under this chapter and having a state license to operate as a nonstorefront retailer. A separate business permit shall be required for each physical address location within the city. An applicant may not apply for a business license until the applicant has received the state license.

B. No person shall be employed by a medicinal cannabis delivery service business within the city without first obtaining an employee permit under this chapter. No permit shall be issued to an individual under twenty-one years of age.

(Ord. 1877 § 4, 2025)

A. An application for a business permit or employee permit shall be on a form provided by the Gardena police department, shall be signed and dated, and shall be accompanied by a permit fee in an amount set by resolution of the city council.

B. All applications shall include the following statements:

1. A certification under penalty of perjury that the information contained in the application is true and correct;

2. An authorization for the city, its officers, agents and employees to seek information and conduct an investigation into the truth of the statements set forth in the application and to ensure continual compliance with all applicable provisions of law;

3. An agreement to the fullest extent permitted by law to indemnify, defend (at the applicant's sole cost and expense), and hold the city, 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 permit, the city's decision to approve the permit, the process used by the city in making its permitting decision, or the alleged violation of any laws by the applicant, its officers, employees, or agents.

C. An application for either a business permit or employee permit shall contain the following information:

1. The legal first and last name of the applicant;

2. The date of birth of the applicant;

3. The address of the applicant;

4. The email address of the applicant;

5. Whether the applicant has engaged in any disqualifying conduct;

6. Such further information as the chief determines necessary to determine compliance with this chapter and applicable provisions of law;

7. A complete set of the applicant's fingerprints taken by the Gardena police department. The applicant shall be responsible for payment of any fingerprinting fee;

8. All applicants shall have their picture taken by the Gardena police department.

D. Business Permit Application. An application for a business permit shall contain the following additional information:

1. An application for a business permit shall be filed for each business owner;

2. Both the business owner and the property owner, if different, shall sign the business permit application form;

3. The legal business name of the medicinal cannabis delivery service business;

4. The physical address of the business;

5. The mailing address of the business if different from the physical address;

6. The telephone number of the business;

7. The website address of the business, if any;

8. Identification of the owner that will serve as the primary contact person, including the person's title; and

9. A site plan showing a complete and detailed diagram of the proposed business location as required by CCR Sections 15006(b) through (f).

E. Employee Permit Application. An application for an employee permit shall contain the following additional information:

1. The legal business name of the medicinal cannabis delivery service business where the applicant will be employed; and

2. The physical address of the business.

F. Renewal. A permit issued pursuant to this chapter shall expire twelve months after the date of its issuance and must be renewed on a yearly basis. A renewal application shall contain the same information as the original application, but new fingerprints need not be provided and a new site plan need not be submitted if there has been no change.

(Ord. 1877 § 4, 2025)

A. A permittee shall be required to update the information contained in the application within ten business days of such change.

B. Reporting Legal Matters. The business owner shall notify the chief in writing of the following legal matters pending against the owner, in its individual capacity or otherwise, within forty-eight hours of the date of conviction, judgment, order, or final decision:

1. 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).

2. 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.

3. 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.

4. 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.

(Ord. 1877 § 4, 2025)

A. The chief is authorized to approve, deny, suspend, or revoke the permits required under this chapter.

B. Upon receipt of a completed application, the chief shall cause an investigation to be conducted by the appropriate departments within the city, including state and local background checks.

C. The chief shall act upon an application within thirty working days following receipt. Notwithstanding the above, failure to act upon a completed application within the time frame set forth above shall not be deemed approval of the application. Any permit issued pursuant to this subsection shall be deemed conditional pending the city's receipt of the California Department of Justice report on the applicant's fingerprints.

D. Permit Issuance. When an application, including a renewal, is approved, in addition to being issued a permit, an identification badge shall be issued to every business owner and employee. The identification badge shall include the permit number and the expiration date.

E. Grounds for Denial. An application for a permit or renewal shall be denied if any of the following grounds are found to exist:

1. The applicant has engaged in disqualifying conduct;

2. There has been a material misrepresentation on the application;

3. There has been a material misrepresentation on the site plan;

4. Application Deficiencies. 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; or

5. For a business permit, facts or circumstances exist which indicate that the business does or would very likely constitute a threat to public health, safety, and/or welfare.

F. Grounds for Revocation or Suspension. A permit issued pursuant to this chapter may be suspended or revoked by the chief if any of the following grounds are found to exist:

1. Any reason exists which would have resulted in a denial of the application in the first instance;

2. For a business permit, there have been modifications to the operations of the business as shown on the original site plan;

3. For a business permit, there has been a change in the business owners and such new owners have not obtained a permit;

4. The chief has determined, based on substantial evidence, that the permittee is in violation of the requirements of this chapter, of this code, or state law; or

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 this section to suspend or revoke a business permit.

6. If, in the discretion of the chief, an alleged violation is minor and capable of correction, then prior to suspension or revocation a written notice shall be given to the permittee of the alleged violation(s) involved to allow a period of time to correct the alleged violation(s), which period shall not exceed five business days, at the end of which period an inspection shall be conducted to determine whether the alleged violation(s) has been corrected. For purposes of this section, written notice may be in the form of a notice of violation or an administrative citation.

G. Any denial, suspension or revocation shall be accompanied by a written statement setting forth the reason for the decision. A notice of suspension or revocation may be accompanied by an administrative or criminal citation. Any notice may be appealed in accordance with Section 5.80.070.

(Ord. 1877 § 4, 2025)

A. An appeal from a decision of the chief shall be conducted as prescribed in this section.

B. Within ten calendar days after the date a decision of the chief is mailed by first-class mail, postage prepaid, to deny, suspend, or revoke a permit, or to add conditions to a permit, 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 permit application was filed with the city;

3. The date of the mailing of the decision to deny, suspend, revoke, or condition the permit which is being appealed; and

4. The factual basis for the appeal.

C. An appeal shall be accompanied by a fee set by resolution of the city council. An appeal without the timely payment of the fee shall be considered to be untimely.

D. Upon receipt of a complete and timely filed notice of appeal, the city clerk shall schedule a hearing before a hearing officer. The hearing officer shall be either the city manager or an administrative hearing officer hired under contract by the city manager.

E. The appellant shall be provided with written notice of the time and place of the appeal hearing, as well as a copy of all relevant materials, at least seven calendar days prior to the hearing.

F. The scope of the appeal hearing shall be limited to those issues raised by the appellant in the written appeal.

G. At the time of the hearing, the hearing officer shall review the records and files relating to the notice of decision.

1. The hearing officer shall permit any interested person, including the chief of police and the appellant, to present any relevant evidence bearing on the issues involved in the matter.

2. In conducting the hearing, technical rules relating to evidence and witnesses shall not apply. Any relevant evidence may be admitted if it is material and if it is evidence customarily relied upon by responsible persons in the conduct of their affairs regardless of the existence of any common law or statutory rule which might make admission of such evidence improper over objection in civil actions. Hearsay evidence may be admissible if it is the sort upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The rules of privilege shall be applicable to the extent they are now or are hereafter permitted in civil actions. Irrelevant, collateral, and repetitious testimony shall be excluded.

3. In determining whether a person should be disqualified for meeting the definition of disqualifying conduct, the hearing officer may consider: the nature and severity of the act(s) or crime(s); whether there were any additional subsequent act(s) or crime(s); the number of act(s) or crime(s); and how recent the act(s) or crime(s) were.

H. The appellant shall have the burden of proving that he or she meets the requirements for issuing the permit in the first instance. The chief shall have the burden of proving that grounds exist for revoking or failing to renew a permit.

I. Based upon the evidence presented at the hearing, the hearing officer shall determine whether the decision by the chief should be affirmed, modified or reversed.

J. The hearing officer's decision and the reasons therefor shall be communicated in writing to the appellant within ten working days after the close of the hearing. The decision shall also state that it is final and conclusive, that judicial review may be sought therefrom pursuant to Code of Civil Procedure Section 1094.5, and that any action filed in the superior court shall be filed within ninety days following the city manager's notice pursuant to Code of Civil Procedure Section 1094.6.

(Ord. 1877 § 4, 2025)

All notices required to be given pursuant to this chapter shall be served on the responsible party (i.e., permittee, applicant or appellant) either by personal delivery or by deposit in the United States mail in a sealed envelope postage prepaid addressed to such responsible party as the name and address appear in the most recent application on file with the city. Service by mail shall be deemed to have been completed on the date deposited in the mail.

(Ord. 1877 § 4, 2025)

The city council may impose by resolution a nonrefundable fee to reimburse the city for its reasonable and necessary costs for providing the services under this chapter. This fee shall be in addition to the business license fees required by this title.

(Ord. 1877 § 4, 2025)

A medicinal cannabis delivery service business and its employees shall comply with the following requirements:

A. All applicable requirements of state law, including statutes and California Code of Regulations.

B. No markings or indications of medicinal cannabis shall be visible from the public right-of-way and/or exterior of the structure(s) associated with the medicinal cannabis delivery service business.

C. Odor control devices and techniques shall be incorporated and maintained to ensure that odors from the medicinal cannabis are not detectable off site.

D. The original of the business permit 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 and not visible to the public.

E. Delivery drivers shall keep the original of the employee permit and identification card, along with a copy of the business permit, with them at all times while making deliveries.

F. All records required to be kept by state law shall be made available to the chief and must be produced no later than one business day after receipt of the city's request, unless otherwise stipulated by the city.

G. The business shall designate a security representative/liaison who can meet with the chief regarding any security related measures and/or operational issues.

H. Signage shall be limited to the name of the business only and shall be in compliance with Chapter 18.58 and shall contain no advertising of other companies, brands, goods, or services.

I. No medicinal cannabis products shall be visible from outside the nonstorefront medicinal cannabis delivery services fixed location or delivery vehicles.

J. No visual display, signage, or condition on the exterior of the nonstorefront medical cannabis delivery service fixed locations or delivery vehicles shall indicate the types of products being stored inside the fixed location or transported in the delivery vehicles.

K. All deliveries of medicinal cannabis must be to a customer's physical address and no delivery may be made to an address located on publicly owned land or any address on land or in a building leased by a public agency.

(Ord. 1877 § 4, 2025)

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 permit pursuant to this chapter. 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 Owners Are Responsible for Violations. The business 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.

E. Inspections and Enforcement.

1. The chief, code enforcement officers, police officers, and the Los Angeles County fire department 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 at any time during the business's hours of operation with or without notice, subject to constitutional limitations, to 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.

2. 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.

(Ord. 1877 § 4, 2025)