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CC Resolution 12103RESOLUTION NO. 12103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL DIRECTING THAT PROPOSED ORDINANCE BE SUBMITTED TO THE VOTERS AT A SPECIAL ELECTION TO BE HELD ON APRIL 25, 2017 AND APPROPRIATING $570,050 FROM THE CITY'S GENERAL FUND FOR THE COST ASSOCIATED WITH VERIFYING SIGNATURES AND HOLDING THE SPECIAL ELECTION WHEREAS, on June 21 2016, proponent Kale Schulte, filed in the Clerk's Office a Notice to Circulate Petition for the purpose of adopting an initiative measure; and WHEREAS, October 19, 2016, the initiative petitions were filed in the Office of the City Clerk; the total number of raw signatures submitted by the proponent was 4,800; the total number of Random Sample signatures verified by the Santa Clara County Registrar of Voters was 500 -and the total number of valid signatures was 416 with a projected number of 3,828 valid signatures; and WHEREAS, the minimum number of 3,143 valid signatures required to call a special election was met; and WHEREAS, on January 12, 2017, the City Council ordered a Special Municipal Election to be held; and WHEREAS, the Special Municipal Election herby called for the date hereinbefore specified may be consolidated with all elections to be held in said jurisdiction and in the City of Campbell on such date, and within the territory affected by the consolidation, and the precincts, polling places and officers of election shall be the same as those established and designated for said election by the Board of Supervisors of the County of Santa Clara and will be held and conducted in the manner prescribed by California Elections Code §10418; and WHEREAS, section 9280 of the Election Code provides that the City Council may direct the City Clerk to transmit a copy of the measure to the City Attorney for preparation of an impartial analysis of the measure; and WHEREAS, subsection (a) of section 9280 of the Election Code provides that for measures placed on the ballot by petition, the person filing an initiative petition may file a written argument in favor of the ordinance, and the City Council may file an argument against the ordinance; and WHEREAS, section 9285 of the Election Code provides in relevant part that, when an argument in favor and an argument against a measure have been selected to be printed in the ballot pamphlet, the City Council may allow for the submittal of rebuttal arguments; and WHEREAS, the deadline for submitting arguments (not to exceed 300 words) for and against the measure to the City Clerk for transmittal to the Santa Clara County Register of Voters is January 26, 2017, at 5:00 p.m.; and WHEREAS, rebuttal arguments may be filed only if the person filing the initiative measure files a written argument in favor of the ordinance and the City Council files an argument against the ordinance; and WHEREAS, the deadline for submitting rebuttal arguments (not to exceed 250 words) to the City Clerk for transmittal to the Santa Clara County Registrar of Voters is, 2017 February 5, at 5:00 p.m. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell herby takes the following actions: 1. Orders a special municipal election to be held on Tuesday, April 25, 2017, to submit the following question to the qualified electors of the City of Campbell: Shall the ordinance allowing the City to license up to three medical marijuana dispensaries in Campbell, which would YES also be allowed to deliver medical marijuana to qualified patients throughout the City, and that would allow every qualified patient and primary caregiver to cultivate up to 100 square feet or 500 square feet of marijuana, respectively, NO without a license be adopted? 2. The complete text of the proposed ordinance as set forth in Exhibit A shall be published in the voter's materials provided to the voters; 3. Appropriates $570,050 from the City's General Fund to the City Clerk's election account to pay for the estimated cost of verifying signatures on the petitions and for holding the special election; 4. Directs the City Clerk to transmit a copy of the measure to the City Attorney for preparation of an impartial analysis of the measure; 5. Allows the person filing an initiative petition to file a written argument in favor of the ordinance, and the City Council to file an argument against the ordinance with the deadline for submitting arguments (not to exceed 300 words) for and against the measure to the City Clerk for transmittal to the Santa Clara County Register of Voters is January 26, 2017, at 5:00 p.m.; 6. Allows for the submittal of rebuttal arguments with the deadline for submitting rebuttal arguments (not to exceed 250 words) to the City Clerk for transmittal to the Santa Clara County Registrar of Voters is, 2017 February 6, at 5:00 p.m.; 7. Requests the Board of Supervisors of the County of Santa Clara to order the County Clerk and Registrar of Voters to: a. Set forth in all sample ballots that are to be mail to voters in the City of Campbell the statement set forth in section 1 of this Resolution, and to mail with the sample ballots copies of all arguments and rebuttals for and against the measure, as well as a copy of the full text of the ordinance set forth in Exhibit A to this Resolution; b. Provide absent voter ballots for the special municipal election for use of the voters of the City that are entitled thereto, in the manner provided by law; and c. Prepare and supply indices to precinct information, assist in the canvass of returns, and provide services to complete the official canvass of returns; 8. Authorize the County Clerk and Registrar of Voters to canvass or cause to be canvassed, as provided by law, the returns of the special municipal election with respect to the votes cast on the measure, and to certify such canvass of the votes cast; 9. Authorizes and directs the City Clerk to submit a certified copy of this Resolution to the County Clerk and Registrar of Voters for the County of Santa Clara, and to prepare, execute and transmit to the County all documents necessary to carry out the purposes of this Resolution; 10. Directs the City Clerk to publish a synopsis of the measure pursuant to Elections Code section 12111. PASSED AND ADOPTED this 12th day of January 2017, by the following roll call vote: AYES: Councilmembers: Waterman, Cristina, Landry, Resnikoff, Gibbons NOES: Councilmembers: None ABSENT: Councilmembers: None ATTEST: Wendy W d, City Clerk APPROVED: ~ ~~~ liza eth Gibbons, Mayor Exhibit A CAMPBELL MEDICAL MARIJUANA REGULATION AND SAFETYJ~,CT SF"Z016 CITY CLERK'S Of'R`vi= The People of the City of Campbell do ordain as follows: SECTION 1: TITLE This initiative shall be known and may be cited as the Campbell Medical Marijuana Regulation and Safety Act of 2016. SECTION 2. FINDINGS AND DECLARATIONS The People of the City of Campbell find all of the following to be true: A. We strongly support the right of seriously ill patients to use medical marijuana in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraines, or any other serious illness or condition for which marijuana provides relief. B. We oppose the arrest, prosecution, and incarceration of persons legally-qualified under the Compassionate Use Act of 1996, codified as California Health & Safety Cade Section 11362.5 and enacted through Proposition 215, the Medical Marijuana Program Act of 2004, as amended, codified as California Health & Safety Code Sections 11362.7 through 11362.83, inclusive, and enacted through Senate Bi11420, and the Medical Marijuana Regulation and Safety Act of 2016, codified as Business & Professions Code Sections 27, 101, and 205.1, California Government Code Section 9147.7, California Health & Safety Code Sections 11362.775 and 19300 through 19355, inclusive, California Labor Code Section 147.5, and California Revenue & Taxation Code Section 31020, by local,.state, or federal law enforcement. C. The cultivation and provision of medical marijuana should occur in a safe and orderly manner in order to protect patients and the community. In the absence of clear guidelines, there has been a lack of consistency in the permitting and regulation of medical marijuana cultivation and dispensing. D. The people of the City of Campbell find and declare that we enact this initiative pursuant to the powers reserved to the State of California, the City of Campbell, and its people under the Tenth Amendment to the United States Constitution. SECTION 3. ADDITION OF CHAPTER 5.56, "MEDICAL MARIJUANA REGULATION AND SAFETY," TO TITLE 5 OF THE CAMPBELL MUNICIPAL CODE, REVISED Chapter 5.56, entitled "Medical Marijuana Regulation and Safety" is added to Title 5, entitled "Business Licenses and Regulations," of the Campbell Municipal Code, Revised and shall read as follows: - Chapter 5.56 -Medical Marijuana Regulation and Safety Part A. Definitions. Section 5.56.010. This act shall be known and may be cited as the Campbell Medical Marijuana Regulation and Safety Act of 2016. Section 5.56.011. For purposes of this chapter, the following definitions shall apply: (a) "Applicant," for purposes of Part D (commencing with Section 5.56.040), means the following: (1) Owner or owners of a proposed facility, including all persons or entities having ownership interest other than a security interest, lien, or encumbrance on property that will be used by the facility. (2) If the owner is an entity, "owner" includes within the entity each person participating in the direction, control, or management of, or having a financial interest in, the proposed facility. (3) If the applicant is a publicly traded company, "owner" means the chief executive officer or any person or entity with an aggregate ownership interest of 5 percent or more. (b) "Bureau" means the Bureau of Medical Marijuana Regulation within the California Department of Consumer Affairs. (c) "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plarit, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. (d) "Cannabis concentrate" means manufactured cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency. (e) "Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. (f) "City" means the City of Campbell. (g) "Commercial cannabis activity" includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical cannabis or a medical cannabis product, except asset forth in Section 5.56.040, related to qualifying patients and primary caregivers. (h) "Delivery" means the commercial transfer of medical cannabis or medical cannabis products from a dispensary, up to an amount determined by the bureau to a primary caregiver or qualified patient as defined in Section 11362.7 of the California Health and Safety Code, or a testing laboratory. "Delivery" also includes the use by a dispensary of any technology platfonn owned and controlled by the dispensary, or independently licensed under this chapter, that enables qualified patients or primary caregivers to arrange for or facilitate the commercial transfer by a licensed dispensary of medical cannabis or medical cannabis groducts. (i) "Dispensary" means a facility where medical cannabis, medical cannabis products, or devices for the use of medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers medical cannabis and medical cannabis products as part of a retail sale. (j) "Dispensing" means any activity involving the retail sale of medical cannabis or medical cannabis products from a dispensary. (k) "Edible cannabis product" means manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum. An edible medical cannabis product is not considered food as defined by Section 109935 of the California Health and Safety Code or a drug as defined by Section 109925 of the Health and Safety Code. (1) "Licensee" means a person issued a license under this chapter. (m)"Live plants" means living medical cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants. (n) "Medical cannabis," "medical cannabis product," or "cannabis product" means a product containing cannabis, including, but not limited to, edible cannabis products, cannabis concentrates, or topical cannabis intended to be sold for use by medical cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of California the Health and Safety Code. For the purposes of this chapter, "medical cannabis" does not include "industrial hemp" as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code. (o) "Person" means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number. (p) "State license," "license," or "registration" means a state license issued by the Bureau. (q) "Topical cannabis" means a product intended for external use. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code. ParE S. Administration Section 5.56.020. The City shall issue licenses only for dispensaries, as defined in this chapter. Section 5.56.021. Protection of the public shall be the highest priority for the City in exercising its licensing, regulatory, and disciplinazy functions under this chapter. Whenever the protection of the public is inconsistent with other interests sought to be promoted, the protection of the public shall be pazamount. Section 5.56.022. The City shall make and prescribe reasonable rules as may be necessary or proper to carry out the purposes and intent of this chapter and to enable it to exercise the powers and duties confen•ed upon it by this chapter, not inconsistent with any statute of this state, including particulazly this chapter and Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For the performance of its duties, the Bureau has the power conferred by Sections 11180 to 11191, inclusive, of the California Government Code. Section 5.56.023. Notice of any action of the City required by this chapter to be given maybe signed and given by the planning director or an authorized employee of the department and may be made personally or in the manner prescribed by Section 1013 of the California Code of Civil Procedure. Section 5.56.024. (a) The City may convene an advisory committee to advise the City on the development of standards and regulations pursuant to this chapter, including best practices and guidelines to ensure qualified patients have adequate access to medical cannabis and medical cannabisproducts. The advisory committee members shall be determined by the city manager. (b) The advisory committee members may include, but not be limited to, representatives of the medical marijuana industry, representatives of medical marijuana cultivators, appropriate local agencies, appropriate local law enforcement, physicians, environmental and public health experts, and medical marijuana patient advocates. Section 5.56.025. The City may make or cause to be made such investigation as it deems necessary to carry out its duties under this chapter. Section 5.56.026. For any hearing held pursuant to this chapter, the City may delegate the power to hear and decide to an administrative law judge. Any heazing before an administrative law judge shall be pursuant to the procedures, rules, and limitations prescribed in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the California Government Code. Section 5.56.027. In any hearing before the City pursuant to this chapter, the City may pay any person appeazing as a witness at the hearing atthe request of the City pursuant to a subpoena, his or her actual, necessary, and reasonable travel, food, and lodging expenses, not to exceed the amount authorized for state employees. Section 5.56.028. The City may on its own motion at any time before a penalty assessment is placed into effect and without any further proceedings, review the penalty, but such review shall be limited to its reduction. Part C. Enforcement Section 5.56.03U. Grounds for disciplinary action include: (a) Failure to comply with the provisions of this chapter or any rule or regulation adopted pursuant to this chapter. (b) Conduct that constitutes grounds for denial of licensure pursuant to Title 5 of the Campbell Municipal Code, Revised. (c) Any other grounds contained in regulations adopted by the City pursuant to this chapter. (d) Failure to comply with any state law, except as provided for in this chapter or other California law. Section 5.56.031. The City may suspend or revoke licenses, after proper notice and hearing to the licensee, if the licensee is found to have committed any of the acts or omissions constituting grounds for disciplinary action. The disciplinary proceedings under this chapter shall be conducted in accordance with Chapter 5 (commencing with Section'11500) of Part 1 of Division 3 of Title 2 of the California Govenment Code, and the City shall have all the powers granted therein. Section 5.56.032. The City may take disciplinary action against a licensee for any violation of this chapter when the violation was committed by the licensee's agent or employee while acting on behalf of the licensee or engaged in activity for which the licensee has obtained a license under this chapter. Section 5.56.033. Upon suspension or revocation of a license, the City shall inform the Bureau, who is previously tasked under the California Medical Marijuana Regulation and Safety Act (AB 266) with informing all other licensing authorities and the Department of Food and Agriculture. Section 5.56.034. All accusations against licensees shall be filed by the City within five (5) yeazs after the performance of the act or omission alleged as the ground for disciplinary action; provided, however, that the foregoing provision shall not constitute a defense to an accusation alleging fraud or misrepresentation as a ground for disciplinary action. The cause for disciplinary action in such case shall not be deemed to have accrued until discovery, by the City, of the facts constituting the fraud or misrepresentation, and, in such case, the accusation shall be filed within five years after such discovery. Section 5.56.035. Nothing in this chapter shall be interpreted to supersede or limit state agencies from exercising their existing enforcement authority under the California Fish and Game Code, the California Water Code, the California Food and Agricultural Code, or the California Health and Safety Code. Section 5.56.036. (a) The actions of a licensee, its employees, and its agents that are (1) permitted pursuant to a license or permit issued by the City, and (2) conducted in accordance with the requirements of this chapter and regulations adopted pursuant to this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis far seizure or forfeiture of assets under state law. (b) The actions of a person who, in good faith, allows his or her property to be used by a licensee, its employees, and its agents, as permitted pursuant to a City license or permit following the requirements of this chapter, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law. Section 5.56.037. (a) A person engaging in commercial cannabis activity without a license required by this chapter shall be subject to civil penalties of up to twice the amount of the license fee for each violation, and the court may order the destruction of medical cannabis associated with that violation in accordance with Section 11479 of the California Health and Safety Code. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section shall be deposited into the City's general treasury. (b) If an action. for civil penalties is brought against a licensee pursuant to this chapter by the City Attomey or City Prosecutor or the Califomia Attorney General on behalf of the people, the penalty collected shall be deposited into the City's general treasury. (c) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person engaging in commercial cannabis activity in violation of this chapter, including, but not limited to, those individuals covered under Section 11362.7 of the California Health and Safety Code. Part D. Licensing Section 5.56.040. (a) The City may issue Iicenses only to qualified applicants who intend to and do engage in dispensing medical cannabis pursuant to this chapter. Upon the date of implementation of regulations by the City, no person shall engage in any commercial cannabis activity without possessing a permit or license from the City. (b} Revocation of the City's license or permit shall terminate the ability of the licensee to operate within the City until the City reinstates or reissues the license or permit. The City shall notify the Bureau upon revocation of the City license or permit. (c} Upon the Bureau's issuance of licenses under the California.Medical Marijuana Regulation and Safety Act, a licensee shall be required to maintain a license issued by the Bureau subject to all of the requirements thereof. Revocation of a state license shall terminate the ability of a medical cannabis licensee to operate within the City until the Bureau reinstates or reissues the state license. (d) Each licensee shall obtain a separate license for each location where it operates its dispensary. (e) Nothing in this chapter shall be construed to supersede or limit state agencies, including the State Water Resources Control Board and Department of Fish and Wildlife, from establishing fees to support their medical cannabis regulatory programs. (f) The City may not issue licenses pursuant to this chapter to more. than three (3) licensees operating at the same time. In the event that a licensee's license issued pursuant to this chapter is revoked, then the City may issue a license to another applicant, provided that there are not more than three (3) active licensees at any given time. (g) An applicant must own the property on which it intends to operate its commercial cannabis activity as evidenced by a deed in the name of the applicant or in the name of a trust of which the applicant is a trustee. Section 5.56.041. A license issued pursuant to this Chapter section shall be valid for 12 months from the date of issuance. The license shall be renewed annually. Section 5.56.042. (a) No license shall be issued by the City for commercial cannabis activity in any zone in the City other than the manufacturing (C-M and M-1) and Planned Development (P-D) zones, except that a dispensazy may engage in delivery of medical cannabis to a qualified patient or primary caregiver at the residence of such qualified patient or primary cazegiver. Any activity conducted by a licensee pursuant to this Chapter is expressly deemed not to be inconsistent with federal law as those terms are used in Section 21.12.030(F)(2) of the Campbell Municipal Code, Revised. (b) No licensee shall operate its business within a 600-foot radius of a school. The distance specified in this section shall be the horizontal distance measured in a straight line from the furthest property line of the school to the closest property line of the lot on which the medical marijuana cooperative, collective, dispensary, operator, establishment, or provider is to be located without regard to intervening structures. For the purposes of this section, "school" means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. Section 5.56.043. The City shall act on all license applications within ninety (90) days that the application is received by the City and shall review applications in the chronological order received by the City. Section 5.56.044. The City shall create and promulgate a form of an application for a license to be issued under this chapter within sixty (60) days of the enactment of this chapter. Such application form will be made available at City Hall and shall also be available on the City's website. The application will contain sufficient questions and requests for documentation to be provided by the applicant to the City to ensure the applicant complies with all aspects of this chapter. Section 5.56.045. A licensee shall not also be licensed as a retailer of alcoholic beverages pursuant to Division 9 (commencing with Section 23000) of the California Business & Professions Code. Section 5.56.046. No license shall be issued for commercial cannabis activity to be conducted on premises that provides ingress or egress to its premises on any side of the location that (i) abuts, (ii) is across a street, alley or walk from, as measured at 90 degrees from the lot lines of the location, or (iii) has a common comer with any land zoned residential, except that an exit door required by the Campbell Municipal Code, Revised may be maintained for emergency egress only and must be locked from the exterior at all times. The above notwithstanding, this subsection shall not prohibit a licensee from locating across a street from, or having a common comer with, any land zoned residential. if the licensee's premises are separated from that residential zone by a public thoroughfare with a minimum roadway width of 80 feet. Section 5.56.047. (a) No City license shall be required for individual qualified patients cultivating medical cannabis marijuana pursuant to California Health & Safety Code Section 11362.5 if the azea he or she uses to cultivate marijuana does not exceed 100 square feet and he or she cultivates marijuana for his or her personal medical use and does not sell, distribute, donate, or provide marijuana to any other person or entity. (b) No City license shall be required for primary cazegivers cultivating medical cannabis pursuant to Califomia Health & Safety Code Section 11362.5 if the azea he or she uses to cultivate marijuana does not exceed 500 square feet and he or she cultivates marijuana exclusively for the personal medical use of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of California Health & Safety Code Section 11362.7 and does not receive remuneration for these activities, except for compensation provided in full compliance with subdivision (c) of Californa Health & Safety Code Section 11362:765. (c) For purposes of this section, the area used to cultivate marijuana shall be measured by the aggregate area of vegetative growth of live plants on the premises. Part E. Medical Marijuana Regulation Section 5.56.050. (a) A licensed dispensary shall implement sufficient security measures to both deter and prevent unauthorized entcance into areas containing medical cannabis or medical cannabis products and theft of medical cannabis or medical cannabis products at the dispensary. These security measures shall include, but not be limited to, all of the following: (1) Preventing individuals from remaining on the premises of the dispensary if they are not engaging in activity expressly related to the operations ofthe dispensary. (2) Establishing limited access areas accessible only to authorized dispensary personnel. (3) Storing all finished medical cannabis and medical cannabis products in a secured and locked room, safe,. or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes, samples, or immediate sale. (b) A dispensary shall notify the City and the appropriate law enforcement authorities within 24 hours after discovering any of the following: (1) Significant discrepancies of more Phan five percent (5%) identified during inventory. (2) Diversion, theft, loss, or any criminal activity involving the dispensary or any agent or employee of the dispensary. (3) The loss or unauthorized alteration of records related to cannabis, registered qualifying patients, primary cazegivers, or dispensary employees or agents. (4) Any other breach of security. (c) Every dispensary must abide by the following operational controls, and failure to do so is grounds for revocation of its license: (1) No dispensary may remain open and/or operating between the hours of 8 PM and 10 AM. (2) No dispensary shall permit cannabis and/or alcohol consumption at the premises or in any azea of the location used for pazking any vehicle. ` (3) No dispensary may permit entry of a minor unaccompanied by a parent or legal guardian on its premises. (4) No dispensary shall permit any cannabis or cannabis products to be visible from the exterior of the premises. (5) No dispensary may illuminate any portion of its premises during closure hours by lighting that is visible from the exterior of the premises, except such lighting as is reasonably utilized for the security of the premises. Section 5.56.051. (a) Deliveries, as defined in this chapter, can only be made by a dispensary. (b) Upon issuance of a license under this chapter, a dispensary that delivers medical cannabis or medical cannabis products shall require all employees of a dispensary delivering medical cannabis or medical cannabis products shall carry a copy of the dispensary's current license authorizing those services with them during deliveries and the employee's government-issued identification, and shall present that license and identification upon request to state and local law enforcement, employees of regulatory authorities, and other state and local agencies enforcing this chapter. (c) During delivery, the licensee shall maintain a physical copy of the delivery request and shall make it available upon request of the City and/or City law enforcement officers. The delivery request documentation. shall comply with state and federal law regarding the protection of confidential medical information. (d) The qualified patient or primary caregiver requesting the delivery shall maintain a copy of the delivery request and shall make it available, upon request, to the City and/or City law enforcement officers. Section 5.56.052. (a) A licensee shall keep accurate records of commercial cannabis activity. (b) All records related to commercial cannabis activity as defined by this Chapter shall be maintained for a minimum of seven years. (c) The City may examine the books and records of a licensee and inspect the premises of a licensee as the City deems necessary to perform its duties under this chapter. All inspections shall be conducted during standard business hours of the licensed facility or at any other reasonable time. (d) Licensees shall keep records identified by the licensing authorities on the premises of the location licensed. The City may make any examination of the records of any licensee. Licensees shall also provide and deliver copies of documents to the City upon request. (e) A licensee or its agent, or employee, that refuses, impedes, obstructs, or interferes with an inspection of the premises or records of the licensee pursuant to this section has engaged in a violation of this chapter. (f) If a licensee or an employee of a licensee fails to maintain or provide the records required pursuant to this section, the licensee shall be subject to a citation and fine of thirty thousand dollars ($30,000) per individual violation. Section 5.56.053. This chapter shall not interfere with an employer's rights and obligations to maintain a drug and alcohol free workplace or require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, Salo, or growth of cannabis in the workplace or affect the ability of employers to have policies prohibiting the use of cannabis by employees and prospective employees, or prevent employers from complying with state or federal law. Part F. Privacy Section 5.56.060. (a) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by the City for the purposes of administering this chapter aze confidential and shall not be disclosed pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), except as necessary for authorized employees of the State of California or any city, county, or city and county to perform official duties pursuant to Phis chapter. (b) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by the bureau for the purposes of administering this chapter shall be maintained in accordance with Chapter 1 (commencing with Section 123100) of Part 1 of Division 106 of the California Health and Safety Code, Part 2.6 (commencing with Section 56) of Division 1 of the Califona Civil Code, and other state and federal laws relating to confidential patient information. (c) Nothing in this section precludes the following: (1) Employees of the City notifying state or local agencies about information submitted to the agency that the employee suspects is falsified or fraudulent. (2) Notifications from the City to state or local agencies about appazent violations of this chapter or applicable local ordinance. (3) Verification of requests by state or local agencies to confirm licenses and certificates issued. by the regulatory authorities or other state agency. (4) Provision of information'requested pursuant to a court order or subpoena issued by a court or an administrative agency or local governing body authorized bylaw to issue subpoenas. (d) Information shall not be disclosed by the City beyond what is necessary to achieve the goals of a specific investigation, notification, or the parameters of a specific court order or subpoena. SECTION 4. FINDINGS REGARDING RIGHTS TO PRIVACY The People of the City of Campbell find and declaze that Section 3 of this act, which adds Section 5.56.060 to the Campbell Municipal Code, Revised, thereby imposes a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the People of the City of Campbell make the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: the limitation imposed under this act is necessary for purposes of compliance with the federal Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. Sec. 1320d et seq.), the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the California Civil Code), and the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Part 2 of Division 1 of the California Insurance Code). SECTION 5. SEVERABILITY The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.