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ORDINANCE NO. 02011-05 AN ORDINANCE OF THE TOWN OF CAVE CREEK ARIZONA, AMENDING THE TOWN CODE BY THE ADDITION OF A NEW TITLE XV, CHAPTER 155 ENTITLED "MEDICAL MARIJUANA DISPENSARIES AND CULTIVATION FACILITIES" THERETO ; REPEALING ANY AND ALL OTHER ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT THEREWITH AND PROVIDING FOR PENALTIES FOR THE VIOLATION THEREOF WHEREAS, on November 2, 2010, the voters of the state of Arizona approved Proposition 203 (1-04-2010), the "Arizona Medical Marijuana Act", which created a distinction between the medical and nonmedical uses of marijuana under Arizona law for persons suffering from debilitating medical conditions who are in need of marijuana for medical purposes and who obtain and use medical marijuana under the circumstances specified in Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq.; and WHEREAS, the possession, use, sale, distribution or transportation of marijuana is still a violation of federal law and, when possessed, used, sold, distributed or transported for any purpose other than medical use, a violation of state law as well; and WHEREAS, accordingly, the possession, use, sale, distribution, and transportation of marijuana for medical use as contemplated by Proposition 203 should be closely monitored and regulated by the Town of Cave Creek (the "Town"); and WHEREAS, if not closely monitored and regulated, the manner in which medical marijuana is possessed, used and distributed may adversely affect the health, safety, and welfare of the residents of the Town as well as the health, safety and welfare of the qualifying patients and designated caregivers whose possession and use of marijuana for medical purposes is permitted by Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq.; and WHEREAS, the Town staff has, pursuant to Town Council direction, reviewed the issues, concerns and secondary effects that may be associated with the operation of medical marijuana dispensaries and medical marijuana cultivation facilities in the Town and has presented proposed regulations pertaining to the same for the Planning Commission and Town's consideration; and WHEREAS, by adoption of this Ordinance, the Town does not intend to authorize or make legal any act that is not permitted under federal or state law 1

but rather to establish local regulations governing the possession and use of medical marijuana under Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq.; and WHEREAS, it is not appropriate to allow establishments that grow, sell or distribute medical marijuana to be located in every zoning district in the Town; and WHEREAS, the Town Council has determined that, for the reasons set forth above and for the purpose of protecting the public health, safety and welfare of the residents and visitors of the Town, it is in the best interests of the Town to amend the Town Code as provided herein. NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF CAVE CREEK, ARIZONA AS FOLLOWS: Section 1 That the Town Code Title XV Land Usage is hereby amended by the addition of a new Chapter 155 thereto, entitled "Medical Marijuana Dispensaries and Cultivation Facilities" to read as follows: Chapter 155 Medical Marijuana Dispensaries and Cultivation Locations Section 2 Legislative Findings and Purpose. A. In many communities in which medical marijuana "dispensaries" have been established, law enforcement agencies have documented the serious and adverse impacts associated with such dispensaries. These communities and the media have reported increased crime, including burglaries, robberies, violence, illegal sales of marijuana to and use of marijuana by minors and others without medical need in the areas immediately surrounding such medical marijuana dispensaries. Other negative secondary effects include the smoking of marijuana in public areas and adverse impacts on neighboring businesses (including odor complaints). The Town could reasonably anticipate experiencing similar adverse impacts and effects from any marijuana dispensaries and cultivation and other marijuana operations established in the Town. B. Additionally, a number of sources, including the United States Department of Justice's California Medical Marijuana website [which contains. various documents and reports related to issues surrounding marijuana use] and the "White Paper on Marijuana Dispensaries" published by the California Police Chiefs Association's Task Force on Marijuana Dispensaries (April 22, 2009), have concluded that the establishment of marijuana dispensaries can lead to an increase in crime. Among the crimes cited as typical examples are burglaries, robberies, sales of illegal drugs in areas immediately surrounding such dispensaries, as well as other public nuisances such as loitering, smoking marijuana in public places, sales to minors and driving while under the influence 2

of marijuana. The Town Council finds that these data and conclusions, experiences in other cities, towns and counties justify the implementation of the regulatory zoning and safety measures included in this ordinance. C. The provisions of this Article are intended to acknowledge and protect the rights of qualifying patients and their designated caregivers under the provisions of Title 36, A.R.S 36-2801 et seq., while also protecting the health, safety, and welfare of the public; through implementation of the Zoning Code; and curtailing to the extent reasonably possible, the possession, use, distribution, or cultivation of marijuana for unlawful purposes by: 1. requiring that medical marijuana businesses, operations and facilities be operated in a manner that minimizes potential health and safety risks and mitigates the negative impacts that a medical marijuana dispensary or cultivation operation might have on surrounding properties and persons; 2. regulating the conduct of persons owning, operating and using medical marijuana dispensaries and cultivation facilities in order to protect the public health, safety and welfare; and 3. regulating the location and operation of medical marijuana dispensaries, cultivation facilities and medical marijuana operations. D. By adoption of this Article, the Town Council does not intend to authorize or make legal any act that is not permitted under federal or state law. Section 3. Definitions. A. The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this Section: 1. Cultivation shall mean the process by which a person grows a marijuana plant(s) as allowed by Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq. and the Department rules and regulations. 2. Medical Marijuana Cultivation Facility shall mean the building, structure or premises used to cultivate a marijuana plant(s). 3. Department shall mean the Arizona Department of Health Services or its successor agency. 4. Department rules and regulations shall mean the adopted regulations of the Department relating to the provisions of Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq. currently in existence and as adopted in the future. 3

5. Designated caregiver shall mean a person, other than qualifying patient and the patient's physician, who, pursuant to Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq. and the Department rules and regulations, assists no more than five (5) registered qualifying patients with the medical use of marijuana. 6. Medical marijuana shall mean marijuana or cannabis, including all parts of any plant of the genus cannabis whether growing or not, the seeds of such plant, and any infusion into consumable/edible goods, approved under state law for treatment of persons suffering from debilitating medical conditions as designated in Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq., the Department rules and regulations, and other laws and regulations of the State of Arizona. 7. Medical marijuana cultivation location for a caregiver shall only be permitted in a locked accessory building that does not exceed 250 square feet of cultivation space and meets the 60' setback requirement from all property lines and is where a designated caregiver, as designated by Arizona Revised Statutes, Title 36, A.R.S. 36-2801 and the Department rules and regulations, cultivates medical marijuana. 8. Medical marijuana dispensary or dispensary shall mean a building, structure or premises used to acquire, possess, cultivate, manufacture, deliver, transfer, transport, sell, distribute, transmit, give, dispense or otherwise provide medical marijuana in any manner to patients or designated caregivers pursuant to the authority contained in Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq., Department rules and regulations, or other implementing state statutes and administrative regulations. 9. Person shall mean a natural person or business entity such as, without limitation, a corporation, association, firm, joint venture, estate, trust, business trust, syndicate, fiduciary, partnership or any group or combination thereof. 10. Premises shall mean the entire parcel of property upon which a medical marijuana dispensary, medical marijuana cultivation facility or any other medical marijuana operation is located. 11. Qualifying Patient shall mean a person who has a debilitating medical condition as defined in Arizona Revised Statutes, Title 36, A.R.S. 36-2801 et seq. and is a registered qualifying patient as defined by State law and the Department rules and regulations. 4

12. School means any building, portion of building, or group of buildings which is designed, constructed, or used for education or instruction in any branch of knowledge, including tutoring centers, day care centers, and the following types of schools: a) "Charter school" means a school operating under sponsorship of a public school district governing board, the State Board of Education or the State Board for Charter Schools and has been created pursuant to A.R.S. 15-181. b) "Private school" means any building, portion of building, or group of buildings used for elementary, secondary or higher education that does not secure the major part of its funding from a governmental agency. c) "Public school" means any building, portion of building, or group of buildings used for elementary, secondary or higher education that secures the major part of its funding from a governmental agency. Section 4. Location A. A medical marijuana dispensary or medical marijuana cultivation facility may be located in the general commercial and commercial core zoning districts with an approved site plan. The locations are limited to the following: 1. A medical marijuana dispensary or medical marijuana cultivation facility shall not be operated or maintained on a parcel within 500 hundred (500) feet, measured by a straight line in all directions, without regard to intervening structures or objects, from the nearest point on the property line of a parcel containing an existing private or public school. 2.A medical marijuana dispensary or medical marijuana cultivation facility shall not be operated or maintained on a parcel within 100 hundred (100) feet, measured by a straight line in all directions, without regard to intervening structures or objects, from the nearest point of the property line of a parcel containing an existing: a. Child care facility; b. Church, synagogue, temple or similar religious worship building; or 5

c. Public park, library, museum or publicly owned community building. 2. A medical marijuana dispensary or medical marijuana cultivation facility shall not be operated or maintained on a parcel within one hundred (100) feet from a residential structure measured by a straight line in all directions, without regard to intervening structures or objects, from the nearest point of the property line of a parcel containing such use. B. Medical marijuana cultivation location for a designated caregiver in a residential district is not permitted, unless sufficient evidence exists that the location is greater than twenty-five (25) miles from a medical marijuana dispensary within the State of Arizona. C. Operating Requirements 1. Any medical marijuana dispensary or medical marijuana cultivation facility shall comply with the following requirements, as well as those contained within Arizona Revised Statutes, Title 36, Chapter 28 and any Department rules and regulations. a. The business shall be located in a permanent building with a foundation and roof that meets all Cave Creek building and fire codes, and not located in a mobile home, trailer, cargo, container, motor vehicle, or similar personal property. b. The building must have received a certificate of occupancy for the use intended. c. No drive-through facilities will be permitted. d. No emission of dust, fumes, vapors, or odors may be released into the environment, and all waste, including any infused edible/consumable goods shall be disposed of in a manner that complies with all federal, state and local regulations. e. A local business license must be obtained. f. Zoning administrative application shall be processed certifying that all regulations are in compliance with this Code and zoning requirements. 3.. Any medical marijuana cultivation location for a designated caregiver in a residential area shall comply with the following requirements, as well as those contained within Arizona Revised 6

Statute, Title 36 Chapter 28 and any Department rules and regulations. a. All cultivation must be in a locked accessory building that meets the sixty feet (60') setback requirement from all property lines and with a foundation and roof that meets all Cave Creek building and fire codes, and not located in a mobile home, trailer, cargo, container, motor vehicle, or similar personal property. b. Cultivation space must does not exceed 250 square feet. c. The building must have received a certificate of occupancy for the use intended. d. The designated caregiver, must obtain an annual Business License from the Town of Cave Creek. e. All designated caregivers must obtain a Home Occupation Permit. Section 5 That any and all other prior ordinances or parts of ordinances in conflict herewith are hereby repealed to that extent. Section 6 That any person found guilty of violating any provisions of this ordinance, shall be guilty of a Class 1 misdemeanor, and upon conviction thereof, may be punished by a fine not to exceed $2,500.00, by imprisonment for a period not to exceed six (6) months, by a term of probation not to exceed three years, or by any combination of such fine, imprisonment, and probation. Each day a violation continues shall constitute a separate offense punishable as hereinabove provided. Section 7 If any section, subsection, sentence, clause, phrase or portion of this ordinance or any part of these amendments of any court of competent jurisdiction, such decision adopted herein is for any reason held to be invalid or unconstitutional by the decision shall not affect the validity of the remaining portions thereof. Section 8 That the Town Clerk is hereby authorized and directed to publish and post this Ordinance in accordance with State law. Section 9 The effective date of this Ordinance shall be thirty (30) days following adoption. 7

PASSED AND ADOPTED by the Mayor and Council of the Town of Cave Creek, Arizona, this Ig day of J 2011. TOWN QF CAVE CREEK, an Arizona m*vicipal yorppration Vincent Francia, Mayor ATTEST: 0^ - APPROVED AS TO FORM: Mariscal, Weeks, McIntyre & Friedlander, Town Attorney 8