Chapter 128 — CANNABIS RETAILERS

(A) Except as specifically authorized by this chapter, to the fullest extent permitted by state law, the city expressly prohibits any and all commercial cannabis retailers within the city. In particular and if allowable under state law, the city hereby expressly prohibits the delivery of cannabis and cannabis products within the city except by cannabis retailers based within the city and permitted under this chapter. If the city is required by state law to permit the delivery of cannabis and cannabis products by commercial cannabis businesses or cannabis retailers not based within the city, such commercial cannabis businesses and cannabis retailers not based within the city shall be required to comply with the requirements under this chapter, including the city retail cannabis business permit application and approval processes under § 128.07.

(B) Nothing in this chapter shall be construed or interpreted to permit the commercial possession, furnishing, manufacture, cultivation, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of industrial hemp.

(C) To the extent expressly authorized in this chapter and Title XV of the City Municipal Code, cannabis retailers are permitted in the city, subject to the satisfaction of all requirements set forth in this chapter, Title XV of the City Municipal Code, MAUCRSA, and all other applicable state and local laws, rules, and regulations. (Ord. 1501, passed 4-5-23)

It is the responsibility of the owners, managers, officers, employees, and agents of any cannabis retailer to ensure that it is operating in a manner compliant with all applicable state and local laws and any regulations promulgated thereunder. Nothing in this chapter shall be construed as in conflict with state law. (Ord. 1501, passed 4-5-23)

When used in this chapter, the following words shall have the meanings ascribed to them as set forth herein. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this code, or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to state statutes include any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.

APPLICANT. The person applying for the retail cannabis business permit under this chapter (not the owners or the managers of the applicant).

CANNABIS. Has the same meaning as defined in Chapter 127 of the City Municipal Code.

CANNABIS BUSINESS. A person engaged in commercial cannabis activity.

CANNABIS CONCENTRATE. Cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by § 109935 of the State Health & Safety Code, or drug, as defined by § 109925 of the State Health & Safety Code.

CANNABIS PRODUCT. Cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

CALENVIROSCREEN. The California Communities Environmental Health Screening Tool or any successor screening methodology used by the Office of Environmental Health Hazard Assessment.

CAREGIVER or PRIMARY CAREGIVER. Has the same meaning as that term is defined in § 11362.7 of the State Health & Safety Code.

CHIEF EXECUTIVE OFFICER. The Chief Executive Officer of the City of Baldwin Park or his or her designee(s).

CHIEF OF POLICE. The Police Chief of the City of Baldwin Park Police Department or his or her designee(s). CITY. The City of Baldwin Park, State of California.

CITY ATTORNEY. The City Attorney of the City of Baldwin Park or his or her designee(s). CITY COUNCIL. The City Council of the City of Baldwin Park.

COMMERCIAL CANNABIS ACTIVITY. Has the same meaning as defined in Chapter 127 of the City Municipal Code.

COMMERCIAL CANNABIS PRODUCTION ACTIVITY. Has the same meaning as defined in Chapter 127 of the City Municipal Code.

COUNTY. The County of Los Angeles, State of California.

CUSTOMER. A natural person 21 years of age or over or a natural person 18 years of age that is a qualified patient or primary caregiver.

DAY-CARE. Has the same meaning as defined in Chapter 127 of the City Municipal Code.

DELIVERY. The commercial transfer of cannabis or cannabis products to a customer. DELIVERY also includes the use by a retailer of any technology platform owned and controlled by the retailer.

DISPENSARY or RETAILER or CANNABIS RETAILER. A location where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale or cannabis business that dispenses cannabis, cannabis products, or devices for the use of cannabis or cannabis products, including a cannabis business that delivers cannabis and cannabis products.

DISPENSING or RETAIL SALE(S). Any commercial cannabis activity involving the retail sale of cannabis or cannabis products from a retailer.

EDIBLE CANNABIS PRODUCT. A cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with § 32501) of the State Food & Agriculture Code. An edible cannabis product is not considered food, as defined by § 109935 of the State Health & Safety Code, or drug, as defined by § 109925 of the State Health & Safety Code. An edible cannabis product shall not be deemed to be adulterated pursuant to § 26131 of the State Business & Professions Code solely because it contains cannabis.

EMPLOYEE. Each natural person employed by a cannabis retailer who is a part-time, full-time, temporary, or permanent employee.

LABOR PEACE AGREEMENT. An agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the city’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis retailer’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer’s employees

work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment.

LICENSING AUTHORITY. A state agency responsible for the issuance, renewal, or reinstatement of state license, or a state agency authorized to take disciplinary action against a state licensee.

MANAGER. Any individual who will be participating in the direction, control, or management of an applicant or a permittee, including but not limited to, any (i) manager or managing member or other officer of a limited liability company or (ii) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation.

MARIJUANA. See CANNABIS as that term is defined in this chapter.

MAUCRSA. Division 10 (commencing with § 26000) of the State Business & Professions Code and any regulations promulgated thereunder.

MEASURE. The Baldwin Park Marijuana Retail Sales Regulation and Taxation Measure.

OWNER. Any of the following:

(1) A person owning in the aggregate equity interests representing 20% or more of the voting power of all outstanding equity in the applicant or a permittee;

(2) The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or

(3) A member of the board of directors of a nonprofit applicant or permittee.

Notwithstanding the above, every applicant and permittee must have at least one individual person designated as an OWNER for the purpose of compliance with this chapter, including the review and evaluation of any retail cannabis business permit application.

PANIC BUTTON. An emergency electronic contact device which allows an employee in the event of an ongoing crime, threat, or other emergency to alert a security guard responsible for providing immediate on-scene assistance. PATIENT or QUALIFIED PATIENT. A natural person who is entitled to the protections of § 11362.5 of the State Health & Safety Code and includes a person issued an identification card issued pursuant to Article 2.5 of Chapter 128 of Division 10 of the State Health & Safety Code.

PERMITTEE. The holder of a valid, city-issued retail cannabis business permit.

PERSON. An individual or natural person, 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.

PERSON WITH AN IDENTIFICATION CARD. Shall have the meaning given to that term in § 11362.7 of the State Health & Safety Code.

PREMISES. The designated structure or structures and land specified in the retail cannabis business permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where cannabis retail sales will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one permittee.

RETAIL CANNABIS BUSINESS PERMIT. A regulatory permit/license issued by the city pursuant to this chapter to a cannabis retailer and is required before any cannabis retail sales may be conducted in the city and is made expressly contingent upon the cannabis retailer’s ongoing compliance with all of the requirements of this chapter and any regulations adopted by the city governing cannabis retail sales.

SALE. Any sale, exchange, or barter or other transaction for any consideration.

SCHOOL. As evidenced by the State Department of Education school directory, a public school instructing children in grades kindergarten through 12, as authorized by the State Department of Education or a private school instructing children in grades kindergarten through 12 that has filed a verification of private school affidavit with the State

Department of Education pursuant to § 33190 of the State Education Code, excluding any private school in which education is primarily conducted in a private home. Pursuant to the authority delegated by the state to the city under § 26054(b) of the State Business & Professions Code, this definition of SCHOOL under this chapter shall override the definition of “school” used in MAUCRSA or § 11362.768 of the Health & Safety Code.

SOCIAL EQUITY APPLICANT. An individual or natural person that meets criteria, or the aggregate ownership interest of 51% in an entity by an individual or natural person that meets criteria, established by the City Council, pursuant to the procedures set forth in the State Government Code and the City Municipal Code and without prior approval of the electorate, by the adoption or amendment of one or more ordinances, provided that such ordinance or amendment is adopted by a two-thirds vote of the entire membership of the City Council and meets the following minimum standards:

(1) An individual or natural person from a low-income household and has either (1) a past conviction for a cannabis crime or (2) an immediate family member with a past conviction for a cannabis crime is a “social equity applicant”;

(2) An individual or natural person from a low-income household in a zip code identified as at least 60% according to CalEnviroScreen for a five consecutive year period and has either (1) a past conviction for a cannabis crime or (2) an immediate family member with a past conviction for a cannabis crime is a “social equity applicant”; and

(3) An individual or natural person from a low-income household and has either (1) five years cumulative residency in a zip code identified as at least 70% according to the CalEnviroScreen or (2) ten years cumulative residency in a zip code identified by CalEnviroScreen is a “social equity applicant”.

STATE. The State of California.

STATE LICENSE. A permit or license issued by the state, or one of its departments or divisions, under MAUCRSA and any subsequent state legislation regarding the same to engage in cannabis retail sales.

TOPICAL CANNABIS. A cannabis product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by § 109925 of the State Health & Safety Code. YOUTH CENTER. Has the same meaning as defined in Chapter 127 of the City Municipal Code. (Ord. 1501, passed 4-5-23)

(A) No person shall operate a cannabis retailer or engage in cannabis retail sales within the city unless such business or activity is currently in compliance with all applicable state and local laws, rules, and regulations and the cannabis retailer has:

(1) A valid city business license to conduct such business or activity;

(2) A valid retail cannabis business permit issued by the city pursuant to this chapter to conduct such business or activity;

(3) A valid state license authorizing such business or activity in the city; and

(4) A valid certificate of occupancy issued by the City’s Building & Safety Division to conduct the cannabis retail sales at the premises identified in the retail cannabis business permit.

(Ord. 1501, passed 4-5-23)

(A) Pursuant to the authority delegated by the state to the city under § 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in § 26054(b) of the State Business &

Professions Code, cannabis retailers in the city shall be subject to the following location and design requirements.

(B) A cannabis retailer shall not be located on property within (1) 600 feet of a school, day-care, or youth center or

(2) 50 feet of a dwelling unit within a residential zone.

(C) Subject to the requirements of this chapter, a cannabis retailer may only be located on property zoned Industrial

• (I) or Industrial-Commercial (I-C).

• (D) All distances specified in this section shall be measured in the following manners:

(1) For schools, day-care, or youth centers, the distance shall be measured in a straight line from the subject property line to the closest property line of the lot on which the cannabis retailer is to be located without regard to intervening structures.

(2) For determining distance to dwelling units within residential zones, the distance shall be measured in a straight line from the subject building to the closest dwelling unit on the lot on which the cannabis retailer is to be located without regard to intervening structures.

(E) Notwithstanding any of the above requirements contained in divisions (A) through (C) of this section, a cannabis retailer may be located on any property that is or was covered by a development agreement entered into and approved pursuant to Chapter 127 of the City Municipal Code prior to January 1, 2018, subject to the remaining requirements of this chapter.

• (F) Each cannabis retailer shall:

(1) Be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties. Odors from the cannabis retailer shall not be detectable from outside the premises and adequate odor control technology shall be utilized;

(2) Be provided with adequate electricity, sewage, disposal, water, fire protection, and storm drainage facilities for the intended purpose; and

(3) Maintain a neighborhood compatibility plan so the City Manager or designee(s) may find that the cannabis retailer and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance.

(Ord. 1501, passed 4-5-23)

(A) The people of the city find that:

(1) The City Council permitted the operation of numerous cannabis businesses engaged in commercial cannabis production activity under Chapter 127 of the City Municipal Code;

(2) The vast majority of the cannabis businesses permitted under Chapter 127 of the City Municipal Code have failed to successfully commence commercial cannabis production activity and comply with the requirements of the development agreement they entered into with the city under Chapter 127 of the City Municipal Code;

(3) However, certain cannabis businesses permitted under Chapter 127 of the City Municipal Code have successfully commenced commercial cannabis production activity and substantially complied with the requirements of the development agreement they entered into with the city under Chapter 127 of the City Municipal Code;

(4) Providing the owners of cannabis businesses permitted under Chapter 127 of the City Municipal Code that have successfully commenced commercial cannabis production activity and substantially complied with the requirements of the development agreement they entered into with the city under Chapter 127 of the Municipal Code priority in the issuance of retail cannabis business permits under this chapter carries out the purpose and intent of the Measure;

(5) Because of its history as an illegal industry, unfair and substandard labor practices proliferate throughout the cannabis industry;

(6) A proven track-record of cannabis business operations with high labor standards and commitment to labor peace carries out the purpose and intent of the Measure; and

(7) Providing the owners of licensed cannabis businesses with a proven track- record of cannabis business operations with high labor standards and commitment to labor peace, as demonstrated by an active, long-term collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States, priority in the issuance of retail cannabis business permits under this chapter carries out the purpose and intent of the Measure.

(B) Within 30 days following the effective date of this chapter, the Chief Executive Officer, pursuant to § 128.21, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for cannabis retailers meeting the following criteria:

(1) An owner or owners of the applicant with an aggregate ownership interest of 50% or more are or were an owner or owners on or prior to July 1, 2021, with an aggregate ownership interest of 50% or more of a cannabis business (and remains an owner or owners with an aggregate ownership interest of 50% or more on the date of the application submission under this section) in the city that entered into a development agreement approved pursuant to Chapter 127 of the City Municipal Code prior to January 1, 2018;

or owners on or prior to July 1, 2021, with an aggregate ownership interest of 50% or more of a cannabis business (and remains an owner or owners with an aggregate ownership interest of 50% or more on the date of the application submission under this section) in the city that entered into a development agreement approved pursuant to Chapter 127 of the City Municipal Code prior to January 1, 2018;

(2) The cannabis retailer will be located on the property that is referenced in the development agreement entered into and approved pursuant to Chapter 127 of the City Municipal Code prior to January 1, 2018, referenced above in division (B)(1);

(3) The cannabis retailer will be located on a property that is or was covered by (whole or in part) a state license to conduct one or more forms of commercial cannabis production activity issued by a licensing authority prior to January 1, 2019;

(4) The cannabis retailer will be located on a property that is or was covered by (whole or in part) a certificate of occupancy to conduct one or more forms of commercial cannabis production activity issued by the City’s Building & Safety Division prior to January 1, 2021;

(5) An owner or owners of the applicant with an aggregate ownership interest of 50% or more are or were an owner or owners on or prior to July 1, 2021, with an aggregate ownership interest of 50% or more of a cannabis business (and remains an owner or owners with an aggregate ownership interest of 50% or more on the date of the application submission under this section) in the city that paid at least one calendar quarter of mitigation fees due under a development agreement approved pursuant to Chapter 127 of the City Municipal Code following issuance of a certificate of occupancy to conduct one or more forms of commercial cannabis production activity to the cannabis business; and

(6) The individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of 100% have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section) or an owner or owners of the applicant with an aggregate ownership interest of 100% are an owner or owners on or prior to July 1, 2021, with an aggregate ownership interest of 50% or more of a cannabis business (and remains an owner or owners with an aggregate ownership interest of 50% or more on the date of the application submission under this section) that entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at

least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section).

(C) Within 30 days of receipt of a retail cannabis business permit application for a cannabis retailer submitted under division (B) of this section, the Chief Executive Officer shall, as a ministerial duty, review the retailer application for the following minimum requirements:

(1) Payment of an application fee established by resolution of the City Council within 30 days following the effective date of this chapter to cover all costs incurred by the city in the application process under this section; (2) Sufficient evidence of the legal right to use the proposed property for the proposed use, to include a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a retail cannabis business permit or other approvals. The city shall only consider one applicant per County Assessor’s Identification Number. In the event that more than one applicant applies for a retail cannabis business permit application at a given property address or a given County Assessor’s Identification Number, the Chief Executive Officer shall, as a ministerial duty, only accept the retail cannabis business permit application with the earliest dated evidence of the legal right to use the proposed property for the proposed use in the name of the applicant;

(3) Sufficient evidence to demonstrate that an owner or owners of the applicant with an aggregate ownership interest of 50% or more are or were an owner or owners on or prior to July 1, 2021, with an aggregate ownership interest of 50% or more of a cannabis business (and remains an owner or owners with an aggregate ownership interest of 50% or more on the date of the application submission under this section) in the city that entered into a development agreement approved pursuant to Chapter 127 of the City Municipal Code prior to January 1, 2018;

(4) Sufficient evidence to demonstrate that the cannabis retailer will be located on the property that is referenced in the development agreement entered into and approved pursuant to Chapter 127 of the City Municipal Code prior to January 1, 2018, referenced above in division (C)(3) of this section;

(5) Sufficient evidence to demonstrate that the cannabis retailer will be located on a property that is or was covered by (whole or in part) a state license to conduct one or more forms of commercial cannabis production activity issued by a licensing authority prior to January 1, 2019;

(6) Sufficient evidence to demonstrate that the cannabis retailer will be located on a property that is or was covered by (whole or in part) a certificate of occupancy to conduct one or more forms of commercial cannabis production activity issued by the City’s Building & Safety Division prior to January 1, 2021;

(7) Sufficient evidence to demonstrate that an owner or owners of the applicant with an aggregate ownership interest of 50% or more are or were an owner or owners on or prior to July 1, 2021, with an aggregate ownership interest of 50% or more of a cannabis business (and remains an owner or owners with an aggregate ownership interest of 50% or more on the date of the application submission under this section) in the city that paid at least one calendar quarter of mitigation fees due under a development agreement approved pursuant to Chapter 127 of the City Municipal Code following issuance of a certificate of occupancy to conduct one or more forms of commercial cannabis production activity to the cannabis business;

(8) Sufficient evidence to demonstrate that (1) the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of 100% have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section) or (2) an owner or owners of the applicant with an aggregate ownership interest of 100% are an owner or owners on or prior to July 1, 2021, with an aggregate ownership interest of 50% or more of a cannabis business (and remains an owner or owners with an aggregate ownership interest of 50% or more on the date of the application submission under this

section) that entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section);

(9) A premises diagram meeting the requirements of § 15006 of Division 19 of Title 4 of the State Code of Regulations; and

(10) A completed background check application and receipt for each owner and manager of the applicant pursuant to § 128.18(L).

(D) The Chief Executive Officer shall, as a ministerial duty, reject any retail cannabis business permit application that fails to meet the minimum requirements contained in division (C) of this section. However, prior to such rejection, the Chief Executive Officer shall, as a ministerial duty, provide a detailed and comprehensive deficiency notice to the applicant providing the applicant 30 days to cure and/or resubmit application components in order to meet the minimum requirements contained in division (C) of this section.

(E) The Chief Executive Officer shall, as a ministerial duty, cease acceptance of retail cannabis business permit applications for retailers pursuant to this section 60 days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers pursuant to this section.

E) The Chief Executive Officer shall, as a ministerial duty, cease acceptance of retail cannabis business permit applications for retailers pursuant to this section 60 days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers pursuant to this section.

(F) Upon timely receipt of a retail cannabis business permit application, the Chief Executive Officer shall direct the Chief of Police to conduct background checks in accordance with § 128.18(L). Upon the completion of an applicant’s background checks by the Chief of Police in accordance with § 128.18(L), the Chief Executive Officer shall, as a ministerial duty, issue retail cannabis business permits to applicants with complete applications under division (C) of this section. However, the Chief Executive Officer shall not issue a retail cannabis business permit to any applicant with an owner or manager that:

(1) Provided false or misleading information on the applicant’s retail cannabis business permit application; (2) Has been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in § 26057(b)(4) of the State Business & Professions Code; or

(3) Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three years immediately preceding the date the application was submitted.

(G) Any decision of the Chief Executive Officer or City Council under this section shall be a final administrative decision not subject to administrative appeal under any provisions of this chapter or any provisions of the City Municipal Code but, rather, subject to judicial review and remedies. (Ord. 1501, passed 4-5-23)

(A) After 365 days following the effective date of this chapter, the City Council may, pursuant to the procedures set forth in the State Government Code and the City Municipal Code and without prior approval of the electorate, amend this section, by the adoption or amendment of one or more ordinances to provide for the issuance of retail cannabis business permits in addition to those retail cannabis business permits issued under § 128.06, provided that such ordinance or amendment is adopted by a two-thirds vote of the entire membership of the City Council and meets the following minimum standards:

(1) The number of retail cannabis business permits for retailers based within the city issued pursuant to this section shall be no more than three;

(2) The number of retail cannabis business permits for retailers (including commercial cannabis businesses engaged in retail sales) based outside the city to engage in delivery within the city issued pursuant to this section shall be zero;

(3) At least one of the retail cannabis business permits for retailers based within the city issued pursuant to this section shall be issued to a social equity applicant;

(4) A cannabis retailer with a retail cannabis business permit issued pursuant to this section shall not be located on property within (1) 600 feet of a school, day-care, or youth center, (2) 50 feet of a dwelling unit within a residential zone, or (3) 2,000 feet of another cannabis retailer;

(5) All distances specified in this section shall be measured in the following manners:

(a) For schools, day-care, youth centers, or cannabis retailers, the distance shall be measured in a straight line from the subject property line to the closest property line of the lot on which the cannabis retailer is to be located without regard to intervening structures.

(b) For determining distance to dwelling units within residential zones, the distance shall be measured in a straight line from the subject building to the closest dwelling unit on the lot on which the cannabis retailer is to be located without regard to intervening structures.

(6) A cannabis retailer may only be located on property zoned Industrial (I) or Industrial-Commercial (I-C);

(7) Retail cannabis business permits for retailers based within the city issued pursuant to this section shall be awarded through a merit-based process in which the Chief Executive Officer and/or City Council shall review and score applications pursuant to objective review criteria; and

(8) Cannabis retailers based within the city issued retail cannabis business permits pursuant to this section shall comply with the requirements set forth in this chapter, Title XV of the City Municipal Code, MAUCRSA, and all other applicable state and local laws, rules, and regulations.

(B) The maximum number of retail cannabis business permits issued for cannabis retailers based within the city or outside the city (including commercial cannabis businesses engaged in retail sales) issued pursuant to this section may not be amended by the City Council or regulations promulgated by the Chief Executive Officer pursuant to this chapter. However, the City Council may and shall increase the maximum number of retail cannabis business permits issued for retailers based within the city or outside the city (including commercial cannabis businesses engaged in retail sales) if ordered to do so by a court of competent jurisdiction as a judicial remedy. (Ord. 1501, passed 4-5-23)

To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to having issued a retail cannabis business permit pursuant to this chapter or otherwise approving the operation of any cannabis retailer. As a condition to the approval of any retail cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive a retail cannabis business permit:

(A) Execution of an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the city, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of, or which are in any way related to, the city’s issuance of the retail cannabis business permit, the city’s decision to approve the operation of the cannabis retailer or activity, the process used by the city in making its decision, or the alleged violation of any federal, state, or local laws by the cannabis retailer or any of its officers, employees, or agents.

(B) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Attorney.

(C) Defend and indemnify the city for all costs and expenses, including but not limited to attorneys’ fees and court costs, that the city may be required to pay as a result of any legal challenge related to the city’s approval of the applicant’s retail cannabis business permit or related to the city’s approval of a cannabis retail sales. The city, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall neither relieve nor increase any of the obligations imposed on the applicant hereunder. (Ord. 1501, passed 4-5-23)

(A) Subject to this section and § 128.10, the term of each retail cannabis business permit shall be indefinite.

(B) Upon the one year anniversary of the date of issuance for each retail cannabis business permit and every other year thereafter, the Chief Executive Officer shall conduct a performance review of the permittee to assess compliance with the requirements of this chapter. Within 30 days of the conclusion of the annual performance review of the permittee, the Chief Executive Officer shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have 60 days to remedy such noncompliance. However, in the event such noncompliance items cannot be reasonably remedied within 60 days, such noncompliance items shall not constitute a serious material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this chapter subject to suspension or revocation under § 128.10, if the permittee commences correction of such noncompliance items within 60 days and thereafter diligently prosecutes correction of such noncompliance items to completion.

(C) The permittee shall pay a fee in an amount to be set by the City Council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the city to administer the program created under this chapter.

(Ord. 1501, passed 4-5-23)

(A) The Chief Executive Officer may suspend or revoke a retail cannabis business permit for any serious material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this chapter.

(B) Suspension or revocation of a state license issued by the state or by any of its departments or divisions, corresponding to the retail cannabis business permit shall immediately result in the suspension of the associated retail cannabis business permit until the state, or its applicable department or division, reinstates the state license or otherwise lifts such suspension.

(C) A permittee shall inform the Chief Executive Officer or designee(s) of any suspension, revocation, or termination of a state license corresponding to its retail cannabis business permit within five business days of the suspension, revocation, or termination of the state license.

(Ord. 1501, passed 4-5-23)

(A) Within ten calendar days after the date of a decision of the Chief Executive Officer to revoke or suspend an issued retail cannabis business 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. An appeal shall stay all proceedings in furtherance of the appealed action.

(B) At the time of filing, the appellant shall pay the designated appeal fee established by resolution of the City Council.

(C) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Council. The City Council shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the city.

(D) The appeal shall be held within a reasonable time after filing the appeal, but in no event later than 90 days from the date of such filing. The city shall notify the appellant of the time and location at least ten days prior to the date of the hearing.

(E) At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.

(F) At the conclusion of the hearing the City Council may affirm, reverse, or modify the decision appealed. The decision of the City Council shall be a final administrative decision, subject to judicial review and remedies. (Ord. 1501, passed 4-5-23)

(A) A permittee may change the business location specified in a retail cannabis business permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the Chief Executive Officer pursuant to regulations adopted under this section within 180 days following the effective date of this chapter. The permittee shall pay an application fee established by resolution of the City Council to cover all costs incurred by the city in the review and processing of change in location applications. The Chief Executive Officer shall process such change in location applications as a ministerial duty within 30 days of receipt. A proposed business location for a cannabis retailer in a change in location application shall meet the following requirements:

(1) A cannabis retailer shall not be located on property within (1) 600 feet of a school, day-care, or youth center,

(2) 50 feet of a dwelling unit within a residential zone, or (3) 2,000 feet of another cannabis retailer;

(2) All distances specified in this section shall be measured in the following manners:

(a) For schools, day-care, youth centers, or cannabis retailers, the distance shall be measured in a straight line from the subject property line to the closest property line of the lot on which the cannabis retailer is to be located without regard to intervening structures.

(b) For determining distance to dwelling units within residential zones, the distance shall be measured in a straight line from the subject building to the closest dwelling unit on the lot on which the cannabis retailer is to be located without regard to intervening structures.

(3) A cannabis retailer may only be located on property zoned Industrial (I) or Industrial- Commercial (I-C).

(B) An applicant or permittee shall notify the Chief Executive Officer or designee(s) within 15 calendar days of any material change in the information provided in the applicant or permittee’s retail cannabis business permit application or any change in status of compliance with the provisions of this chapter, including any change in the cannabis retailer ownership or management.

(Ord. 1501, passed 4-5-23)

(A) An owner of a retail cannabis business permit shall not transfer ownership or control of such permit to another person unless and until the permittee and transferee obtain an amendment to the permit from the Chief Executive Officer stating that the transferee is now an owner of the permit. A permittee may change the ownership specified in a retail cannabis business permit upon submission and approval of a change in ownership application promulgated, as a

ministerial duty, by the Chief Executive Officer pursuant to regulations adopted under § 128.21 within 180 days following the effective date of this chapter. The permittee shall pay an application fee established by resolution of the City Council to cover all costs incurred by the city in the review and processing of change in ownership applications. The Chief Executive Officer shall process such change in ownership applications as a ministerial duty within five business days once the Chief Executive Officer reasonably determines that the transferee passed the background check required for owners and meets all other requirements of this chapter.

(B) Notwithstanding division (A) of this section, no retail cannabis business permit may be transferred when the Chief Executive Officer has notified the permittee that its retail cannabis business permit has been or may be suspended or revoked.

(C) Any attempt to transfer a retail cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit. (Ord. 1501, passed 4-5-23)

(A) Each cannabis retailer shall maintain accurate books and records in an electronic format, which detail all revenues and expenses of the business, including, but not limited to, all of its assets and liabilities. At the time of the performance review of a retail cannabis business permit issued pursuant to this chapter, each cannabis retailer shall file a sworn statement detailing the number of sales by the cannabis retailer during the previous 12-month period (or shorter period based upon the timing of the request) detailing sales for each month within such period in question. The statement shall also include gross sales for each month and all applicable taxes paid or due to be paid.

(B) Each cannabis retailer shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis retailer and, separately, the same contact information of all officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis retailer. The register required by this division (B) shall be provided to the Chief Executive Officer upon a reasonable request.

(C) Each cannabis retailer shall maintain a record of all purchases and sales of cannabis and cannabis products for a period of no less than seven years.

(D) All cannabis retailers shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products.

(E) Subject to any applicable restrictions under the Health Insurance Portability & Accountability Act (“HIPAA”) regulations, each cannabis retailer shall grant the Chief Executive Officer access to the business’s books, records, accounts, together with any other data or documents relevant to its operation, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents shall be produced no later than ten business days after receipt of the Chief Executive Officer’s request for such data, unless otherwise stipulated by the Chief Executive Officer. The Chief Executive Officer may require the materials to be submitted in an electronic format that is compatible with the city’s software and hardware.

(Ord. 1501, passed 4-5-23)

(A) A cannabis retailer shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the cannabis retailer. Except as may otherwise be determined by the Chief Executive Officer, these security measures shall include, but are not limited to, all of the following:

(1) Preventing individuals from remaining on the premises of the cannabis retailer if they are not engaging in an activity directly related to the permitted operations of the cannabis retailer.

• (2) Establishing limited access areas accessible only to authorized cannabis retailer personnel.

• (3) All cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products shall be kept in a manner designed to prevent diversion, theft, and loss.

(4) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the cannabis retailer, which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis, and all interior spaces where diversion of cannabis could reasonably occur. The cannabis retailer shall be responsible for ensuring that the security surveillance camera's footage is remotely accessible by the Chief Executive Officer, and that it is compatible with the city's software and hardware. Video recordings shall be maintained for a minimum of 90 days and shall be made available to the Chief Executive Officer upon request. Video shall be of sufficient quality for

effective prosecution of any crime found to have occurred on the site of the cannabis retailer.

• (5) Sensors shall be installed to detect entry and exit from all secure areas.

• (6) Panic buttons shall be installed in all cannabis retailers.

• (7) Having a professionally installed, maintained, and monitored alarm system.

• (8) Any bars installed on the windows or the doors of the cannabis retailer shall be installed only on the interior of the building.

(9) The premises shall be live monitored 24 hours a day unless the cannabis retailer has an alternative security program authorized by the Chief Executive Officer. Security personnel must be licensed by the State Bureau of Security & Investigative Services personnel and shall be subject to the prior review and approval of the Chief Executive Officer, which shall not be unreasonably withheld.

(10) Additional security measures may be added through the review of a retail cannabis business permit application.

(B) Each cannabis retailer shall identify a designated security representative or liaison to the city, who shall be reasonably available to meet with the Chief Executive Officer regarding any security related measures and/or operational issues.

(C) Each cannabis retailer (including as part of the retail cannabis business permit application process) shall have a storage and transportation plan and currency management plan, which describes in detail the procedures for safely and securely storing, disposing and transporting all cannabis, cannabis products, and any currency.

(D) The cannabis retailer shall cooperate with the city whenever the Chief Executive Officer makes a request, upon reasonable notice to the cannabis retailer, to inspect or audit the effectiveness of any security plan or of any other requirement of this chapter.

(E) A cannabis retailer shall notify the Chief Executive Officer within 24 hours after discovering any of the following:

(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the Chief Executive Officer.

(2) Diversion, theft, loss, or any criminal activity involving the cannabis retailer or any agent or employee of the cannabis retailer.

(3) The loss or unauthorized alteration of records related to cannabis and cannabis products or registering customers or employees and/or agents of the cannabis retailer.

(4) Any other breach of security.

(Ord. 1501, passed 4-5-23)

No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis retailer.

(Ord. 1501, passed 4-5-23)

(A) No person may commence or continue any cannabis retail sales in the city without timely paying in full all fees and charges required for the operation of a cannabis retail sales. Fees and charges associated with the operation of such activity shall be established by resolution of the City Council which may be amended from time to time.

(B) All cannabis retailers authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state, and local law. Each cannabis retailer shall cooperate with city with respect to any reasonable request to audit the cannabis retailer’s books and records for the purpose of verifying compliance with this section, including, but not limited to, a verification of the amount of taxes required to be paid during any period.

(Ord. 1501, passed 4-5-23)

(A) Cannabis retailers may operate only during the hours specified in the retail cannabis business permit issued by the city and must comply with state law at all times.

(B) Cannabis shall not be consumed on the premises of any cannabis retailer.

(C) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a retail cannabis business permit or on any of the vehicles owned or used as part of the cannabis retailer. No outdoor storage of cannabis or cannabis products is permitted at any time.

(D) Each cannabis retailer shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the cannabis retailer including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the city. The cannabis retailer shall ensure that such information is compatible with the city’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the Chief Executive Officer prior to being used by a permittee.

(E) All cannabis and cannabis products sold and/or distributed shall be cultivated, manufactured, and distributed by licensed facilities that maintain operations in full conformance with the state and local regulations. The packaging and labeling of cannabis and cannabis products shall comply at all times with state law.

(F) There shall not be a physician located in any cannabis retailer at any time for the purpose of evaluating patients for the issuance of a medicinal cannabis recommendation.

(G) Each cannabis retailer shall provide the Chief Executive Officer with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.

• (H) Signage and notices.

(1) In addition to the requirements otherwise set forth in this section, business identification signage for a cannabis retailer shall conform to the requirements of the City Municipal Code, including, but not limited to, seeking the issuance of a city sign permit.

(2) No signs placed on the premises of a cannabis retailer shall obstruct any entrance or exit to the building or any window.

(3) Each entrance to a cannabis retailer shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises, or in the areas adjacent to the premises, is prohibited.

(4) The entrance to the cannabis retailer shall be clearly and legibly posted with a notice that no person under the age of 21 years of age is permitted to enter upon the premises of the cannabis retailer, other than as lawful customers permitted under state law.

(I) Other than as lawful customers permitted under state law in the case of retailers, individuals under the age of 21 years shall not be allowed on the premises of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer. It shall be unlawful and a violation of this chapter for any person to employ any person at a cannabis retailer who is not at least 21 years of age.

(J) Odor control devices and techniques shall be incorporated in all cannabis retailers to ensure that odors from cannabis are not detectable off-site. Cannabis retailers shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis retailer that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis retailer.

(K) The original copy of the retail cannabis business permit issued by the city pursuant to this chapter and the city issued business license shall be posted inside the cannabis retailer in a location readily visible to the public.

(L) Pursuant to §§ 11105(b)(11) and 13300(b)(11) of the State Penal Code, which authorizes city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, or volunteer of the cannabis retailer must submit fingerprints and other information deemed necessary by the Chief Executive Officer for a background check. Pursuant to §§ 11105(b)(11) and 13300(b)(11) of the State Penal Code, which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a retail cannabis business permit unless they have first cleared the background check, as determined by the Chief Executive Officer, as required by this chapter. A fee for the cost of the background investigation, which shall be the actual cost to the city to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a retail cannabis business permit is submitted. No owner, manager, supervisor, employee, or volunteer of the cannabis retailer shall:

(1) Have been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in § 26057(b)(4) of the State Business & Professions Code; or

(2) Have been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three years immediately preceding the date the application was submitted.

(M) The cannabis retailer shall prohibit loitering by persons outside the facility both on the premises and within 50 feet of the premises.

(N) Within 60 days of licensure, for a permittee with two or more employees, the permittee shall attest to the city that the permittee has entered into a labor peace agreement and will abide by the terms of the agreement. The permittee shall submit a copy of the page of the labor peace agreement that contains the signatures of the labor representative and the applicant. For permittees with less than two employees who have not yet entered into a labor peace agreement, the permittee shall provide a notarized statement indicating that the applicant will enter into and

abide by the terms of a labor peace agreement within 30 days after employing two employees. If an attestation that the permittee is party to a labor peace agreement, and a copy of the page of the labor peace agreement that contains the signatures of the labor representative was submitted to the city by the permittee as part of the application process, that will meet this obligation.

(O) Cannabis retailers shall implement a workforce plan that includes at least the following provisions:

(1) Commitment for 30% of employees to be local hires; this local hiring requirement is satisfied when a cannabis retailer shows that it has either hired or made a good faith effort to hire bona fide residents of the city or persons that may establish residency after initial employment with the permittee;

(2) Commitment to offer apprenticeships and/or compensation for continuing education in the field of cannabis retail sales; and

(3) Entering into a collective bargaining agreement and/or paying a living wage to employees. LIVING WAGE means 50% more than the applicable amount of the hourly minimum wage mandated by state law (convertible to an annual salary by multiplying that hourly minimum wage by 2,080, as applicable), whichever is greater.

(P) It shall be unlawful for a cannabis retailer to discriminate in any manner or take adverse action against any employee in retaliation for exercising rights protected under this chapter or city or state law. These rights include, but are not limited to (1) the right to file a complaint or inform any person about any party’s alleged noncompliance with this chapter or city or state law and (2) the right to inform any person of his or her potential rights under this chapter or city or state law and to assist him or her in asserting such rights. Protections under this chapter or city or state law shall apply to any employee who mistakenly, but in good faith, alleges noncompliance with this chapter or city or state law. Taking adverse action against an employee within 90 days of the employee’s exercise of rights protected under this chapter or city or state law shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.

(Ord. 1501, passed 4-5-23)

(A) Retailers and the operation thereof shall comply with state law at all times.

(B) Prior to dispensing medicinal cannabis or medicinal cannabis products to a qualified patient, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of 18 years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in §§ 11362.71 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven years.

(C) Prior to dispensing cannabis or cannabis products to an adult-use customer, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of 21 years.

(D) All restroom facilities shall remain locked and under the control of managers onsite.

(E) A retailer shall notify customers (verbally or by written agreement) and by posting of a notice or notices conspicuously in at least 15-point type within the permitted premises that state as follows:

(1) “The sale or diversion of cannabis or cannabis products without a license issued by the City of Baldwin Park is a violation of State law and the Baldwin Park Municipal Code.”

(2) “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest."

(3) “Customers must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance."

(4) “WARNING: The use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate heavy machinery.”

(5) “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis-derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer and reproductive harm.”

• (Ord. 1501, passed 4-5-23)

• (A) Delivery shall comply with state law at all times.

• (B) Security plans developed pursuant to this chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.

• (C) A retailer shall facilitate the delivery of cannabis or cannabis products with a technology platform owned by or licensed to the delivery-only retailer that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the retailer and customer:

• (1) The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;

• (2) The identity of the customer receiving cannabis or cannabis products from the permittee;

• (3) The type and quantity of cannabis or cannabis products dispensed and received;

• (4) The gross receipts charged by the permittee and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received; and

• (5) The location or address where the sale or retail sale took place or closed.

(D) A permittee shall maintain a database and provide a list of the individuals and vehicles authorized to conduct delivery, and a copy of the valid state driver’s license issued to the driver of any such vehicle on behalf of the retailer to the Chief Executive Officer.

(E) Individuals making deliveries of cannabis or cannabis products on behalf of the retailer shall maintain a physical copy of the delivery request (and invoice) and shall make it available upon the request of agents or employees of the city requesting documentation.

(F) During delivery, a copy of the permittee’s retail cannabis business permit and state license shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the city requesting documentation.

• (G) A retailer shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is (1) insured at or above the legal requirement in the state; (2) capable of securing (locking) the cannabis or cannabis products during transportation; (3) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (4) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a retailer.

• (H) A retailer shall facilitate deliveries with a technology platform owned by or licensed to the retailer that uses

global positioning system technology to track, and database technology to record and store the following information:

• (1) The time that the individual conducting delivery on behalf of the retailer departed the licensed premises.

• (2) The time that the individual conducting delivery on behalf of the retailer completed delivery to the customer.

• (3) The time that the individual conducting delivery on behalf of the retailer returned to the licensed premises.

• (4) The route the individual conducting delivery on behalf of the retailer traveled between departing and returning to the licensed premises to conduct delivery.

• (5) For each individual delivery transaction, the identity of the individual conducting deliveries on behalf of the retailer.

(6) For each individual delivery transaction, the vehicle used to conduct delivery on behalf of the retailer.

(7) For each individual delivery transaction, the identity of the customer receiving cannabis or cannabis products from the retailer.

(8) For each individual delivery transaction, the type and quantity of cannabis or cannabis products dispensed and received.

(9) For each individual delivery transaction, the gross receipts charged by the retailer and received by the individual conducting deliveries on behalf of the retailer for the cannabis or cannabis products dispensed and received. (I) The individual making deliveries on behalf of the retailer shall personally verify for each individual delivery transaction the identity of the customer receiving cannabis or cannabis products from the retailer and (1) for medicinal cannabis or medicinal cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of 18 years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in §§ 11362.71 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven years or (2) for cannabis or cannabis products to an adult-use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of 21 years.

(J) Each delivery vehicle shall be equipped with a dual dash camera system showing the inside of the vehicle as well as a forward facing camera and shall be turned on at all times the vehicle is in the city making cannabis deliveries. Video footage shall be retained for a period of at least two weeks and made available to the city upon request.

(K) Each cannabis delivery permit holder shall maintain a current register of names and required information for all employees participating in the delivery of cannabis in the city and all vehicles used for the delivery of cannabis in the city. In no event shall any employee participate in the delivery of cannabis in the city or a vehicle be used for the delivery of cannabis in the city until the information is updated to the permit holder’s register. Each cannabis delivery permit holder shall provide the city its current register upon request by the city within 48 hours.

(L) Cannabis delivery is only permitted in the city between the hours of 8:00 a.m. to 10:00 p.m.

(M) Each cannabis delivery permit holder shall maintain accurate books and records, detailing all of the revenues and expenses of all cannabis delivery in the city. On no less than an annual basis, or at any time upon reasonable request of the city, each cannabis delivery permit holder shall file a sworn statement detailing the number of sales by the cannabis delivery permit holder during the previous 12-month period (or shorter period based upon the timing of the request), provided on a monthly basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid. If, upon written request from the city, each cannabis delivery permit holder shall make available to the city all books, records, accounts, inventory and access to onsite operations of persons engaged in cannabis delivery specific to the business, including examination of both state and federal income tax returns, sales tax returns, or other evidence documenting the finances pertaining to cannabis delivery in the city for the purpose of verifying compliance with this chapter and any other applicable provision of this code.

(N) Employees delivering cannabis or cannabis product or dispensing cannabis or cannabis products on behalf of the permittee may not receive anything tangible from the customer. All payments and tips for the cannabis or cannabis products should be transmitted to the permittee electronically.

(O) A retailer shall seal each order of cannabis or cannabis products in tamper- evident packaging before the individual conducting the delivery on behalf of the retailer departs the licensed premises. A retailer shall include any promotional branded merchandise of any licensee, or promotional materials inside the sealed, tamper-evident packaging. Employees delivering cannabis or cannabis product or dispensing cannabis or cannabis products on behalf

of the permittee may not deliver or dispense promotional branded merchandise of any licensee, or promotional materials not included in the delivery package.

(P) A retailer or a licensed retailer’s delivery employee shall not leave cannabis or cannabis goods in an unattended motor vehicle outside of the retailer’s hours of operation. A retailer shall ensure that vehicles used for delivery of cannabis or cannabis products are cleared of all cannabis or cannabis products before ceasing daily operations. (Ord. 1501, passed 4-5-23)

(A) Distribution shall comply with state law at all times.

(B) Security plans developed pursuant to this chapter shall include provisions relating to vehicle security and the protection of employees and product during loading, unloading and in transit.

(C) A distributor shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is (1) insured at or above the legal requirement in the state; (2) capable of securing (locking) the cannabis or cannabis products during transportation; (3) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (4) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a retailer.

(D) A distributor shall facilitate distributions with a technology platform owned by or licensed to the distributor that uses global positioning system technology to track, and database technology to record and store the following information:

(1) The time that the individual conducting distribution on behalf of the distributor departed the licensed premises.

(2) The time that the individual conducting distribution on behalf of the distributor completed distribution to the manufacturer, cultivator or retailer or returned to the licensed premises to store the cannabis and cannabis products.

(3) The time that the individual conducting distribution on behalf of the manufacturer, cultivator or retailer returned to the licensed premises.

(4) The route the individual conducting distribution on behalf of the distributor traveled between departing and returning to the licensed premises to conduct the distribution or transportation for storage.

(5) For each individual distribution transaction, the identity of the individual conducting distribution on behalf of the manufacturer, cultivator or retailer.

(6) For each individual distribution transaction, the vehicle used to conduct distribution on behalf of the manufacturer, cultivator or retailer.

(7) For each individual distribution transaction, the identity of the individual conducting distribution on behalf of the distributor.

(E) Each cannabis distributor permit holder shall maintain accurate books and records, detailing all of the revenues and expenses of all cannabis distribution and storage. On no less than an annual basis, or at any time upon reasonable request of the city, each cannabis distributor permit holder shall file a sworn statement detailing the distribution and storage of cannabis during the previous 12-month period (or shorter period based upon the timing of the request), provided on a monthly basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid. If, upon written request from the city, each cannabis distributor permit holder shall make available to the city all books, records, accounts, inventory and access to onsite operations of persons engaged in cannabis distribution specific to the business, including examination of both state and federal income tax returns, sales tax returns, or other evidence documenting the finances pertaining to cannabis distribution in the city for the purpose of verifying compliance with this chapter and any other applicable provision of this code.

(F) Employees distributing cannabis or cannabis products on behalf of the permittee may not receive anything tangible from the manufacturer, producer or retailer. All payments for the cannabis or cannabis products should be transmitted to the permittee electronically.

(G) A distributor shall not leave cannabis or cannabis goods in an unattended motor vehicle outside of the distributor’s hours of operation. A distributor shall ensure that vehicles used for delivery of cannabis or cannabis products are cleared of all cannabis or cannabis products before ceasing daily operations.

(Ord. 1501, passed 4-5-23)

(A) Consistently with stated requirements of this chapter (and in particular not to repeal or constructively repeal this chapter), in addition to any regulations adopted under state law, the Chief Executive Officer is authorized to establish any additional rules, regulations, and standards governing the issuance, denial, or renewal of retail cannabis business permits, the ongoing operation of cannabis retailers, and the city’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

(B) Such regulations shall be published on the city’s website.

(C) Regulations promulgated by the Chief Executive Officer shall become effective upon date of publication. Cannabis retailers shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the Chief Executive Officer.

(Ord. 1501, passed 4-5-23)

(A) Each cannabis retailer shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis retailer can be provided. Each cannabis retailer shall also provide the above information to all businesses and residences, in the city, located within 150 feet of the cannabis retailer. Such community relations contact shall respond to any complaints within 48 hours of receipt of such complaints.

(B) During the first year of operation pursuant to this chapter, the owner(s), manager(s), and community relations representative from each cannabis retailer holding a retail cannabis business permit issued pursuant to this chapter shall attend a quarterly meeting with the Chief Executive Officer and other interested parties as deemed appropriate by the Chief Executive Officer, to discuss costs, benefits, and other community issues arising as a result of implementation of this chapter. After the first year of operation, the owner(s), manager(s), and community relations representative from each such cannabis retailer shall meet with the Chief Executive Officer when and as requested by the Chief Executive Officer.

(C) Cannabis retailers to which a retail cannabis business permit is issued pursuant to this chapter shall develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. (Ord. 1501, passed 4-5-23)

The amount of any fee, cost, or charge imposed pursuant to this chapter shall be deemed a debt to the city that is recoverable via authorized processes as set forth in the City Municipal Code or available through any court of competent jurisdiction.

(Ord. 1501, passed 4-5-23)

(A) Each permittee and each owner and each manager of the permittee (and each individual owner and each individual manager of an owner or manager of the permittee) shall be responsible for all violations of the laws of the state or of the regulations and/or the ordinances of the city occurring within the city or in or about the premises of the cannabis retailer, if committed by the permittee or any employee or agent of the permittee and whether or not said violations occur within the permittee, owner, or manager’s presence.

(B) No person may engage in any cannabis retail sales within the city unless the person is in compliance with the requirements of this chapter.

(C) It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any location, structure, or vehicle in the city by a person (1) that does not have a valid retail cannabis business permit issued by the city; (2) that does not have a valid state license; (3) that does not have any other applicable approvals, including, but not limited to, a building permit and city business license; or (4) that is not currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis retail sales. Property owners shall have strict liability for any cannabis retail sales at any location, structure, or vehicle in the city by a person (1) that does not have a valid retail cannabis business permit issued by the city or (2) that does not have a valid state license. (Ord. 1501, passed 4-5-23)

(A) The Chief Executive Officer or designee(s) charged with enforcing the provisions of the City Municipal Code, or any provision thereof, may enter the location of a cannabis retailer at any time, without notice, and inspect the location of any cannabis retailer as well as any recordings and records required to be maintained pursuant to this chapter or under applicable provisions of state law.

(B) It is unlawful for any person having responsibility over the operation of a cannabis retailer, to impede, obstruct, interfere with, or otherwise not to allow, the city to conduct an inspection, review or copy records, recordings, or other documents required to be maintained by a cannabis retailer 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 cannabis retailer under this chapter or under state or local law.

(C) The Chief Executive Officer or designee(s) charged with enforcing the provisions of this chapter may enter the location of a cannabis retailer at any time during business hours and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the city shall be logged, recorded, and maintained in accordance with the city law enforcement standards for evidence.

(Ord. 1501, passed 4-5-23)

It is the stated intent of this chapter to regulate cannabis retail sales in the city concurrently with the state. (Ord. 1501, passed 4-5-23)

Each and every serious material violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance.

(Ord. 1501, passed 4-5-23)

Each and every violation of this chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City Municipal Code. Additionally, as a nuisance per se, any serious material violation of this chapter shall be subject to injunctive relief, any retail cannabis business permit issued pursuant to this chapter being deemed null and void, disgorgement, and payment to the city of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney’s fees, and any other relief or remedy available at law or in equity. The city may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the cannabis retailer or persons related to, or associated with, the cannabis retail sales. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the Chief Executive Officer or designee(s), may take immediate action to temporarily suspend a retail cannabis business permit issued by the city, pending a public hearing before the City Council.

(Ord. 1501, passed 4-5-23)

Each and every serious material violation of the provisions of this chapter may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed $1,000 or imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment. Each day a serious material violation is committed or permitted to continue shall constitute a separate offense.

(Ord. 1501, passed 4-5-23)

The remedies provided herein are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by law.

(Ord. 1501, passed 4-5-23)

(A) The provisions of Part 7 of Chapter 8.04 (Commercial Cannabis Activities) and Chapter 11.37 (Cannabis Facilities) of the Los Angeles County Public Health Code, enacted by Ordinance 2017-0060 in effect on December 19, 2017, and as amended, are adopted by reference as the cannabis public health regulations of the city for cannabis retailers.

(B) In the event of any conflict or inconsistency between the provisions contained in this section and the County’s Public Health Code, Title 11, Health and Safety, and portions of Title 8, Consumer Protections, including amendments, adopted by reference under § 94.01, the provisions of this section shall control. (Ord. 1520, passed 11-5-25)

(A) Findings.

(1) Unlicensed cannabis businesses threaten the health and safety of cannabis consumers by selling products that are cultivated, manufactured, prepared, and processed outside of the regulated cannabis marketplace. These products may be tainted, contaminated, mislabeled, unlabeled, or misbranded, and may cause injury or illness if consumed.

(2) Unlicensed and unregulated cannabis stores harm the peace, comfort, and welfare of people who live and work nearby. These stores are more likely to operate outside of prescribed hours of operation, without meeting locational and operational standards, and may be more likely to sell cannabis in quantities that exceed legal limits and sell cannabis to minors in violation of applicable law.

(3) Cannabis consumers should be able to tell whether a retail cannabis business is unlicensed without having to enter the premises and should understand the health risks and consequences of shopping at an unlicensed cannabis business. This knowledge and understanding will empower consumers to make smart choices to protect their health and safety. Communities will also benefit from a reduction in the number of unlicensed cannabis stores.

(B) Purpose and intent.

(1) The emblem program for authorized cannabis stores (program) is administered by the County of Los Angeles in partnership with cities within the County of Los Angeles as a cross-jurisdictional effort to deter the operation of unlicensed cannabis businesses. The program is intended to protect consumers and stop harmful effects caused by unlicensed and unregulated cannabis businesses on local neighborhoods and communities by requiring retail cannabis businesses that have received all appropriate licenses, permits, or authorizations from the State of California and local governments to both display a unique emblem on the store’s premises so that it is highly visible to the public from the exterior of the store and provide and make program-supplied health-related information accessible to consumers.

(2) The program is not intended to promote the use, possession, distribution, manufacturing, or cultivation of cannabis or cannabis products, or to engage in any actions that conflict with any applicable local, state, or federal laws.

(C) Definitions.

AUTHORIZED CANNABIS STORE. A retail commercial cannabis business engaged in the commercial sale of medical or adult-use cannabis to customers at a business premises location, provided:

(a) The retailer has obtained a Type-10 (Retailer) or Type 12 (Microbusiness) License or temporary approval from the city, and a license or provisional license from the state for the same activity or activities;

(b) The retailer has obtained all licenses, permits, or authorizations required by the city and any other local agencies necessary to allow the business to engage in the sale of medical or adult-use cannabis; and

(c) The retailer keeps all applicable licenses, permits, or authorizations current and valid, and remains in good standing to engage in the sale of medical or adult-use cannabis in the city.

EMBLEM. The emblem featured on the emblem placard issued to an authorized cannabis store by the Program Administrator as part of the program.

EMBLEM PLACARD. A placard displaying the emblem and other required information, that conforms to the design requirements specified in division (D) and issued to an authorized cannabis store by the Program Administrator as part of the program that notifies the public that the store has received all required state and local licenses, permits, or other authorizations to become an authorized cannabis store.

HEALTH INFORMATION ADVISORY. The pamphlet, paper, or other media provided to the authorized cannabis store by the Program Administrator that contains health information messages, regarding cannabis use and its potential health impacts, created by the Department of Public Health.

PROGRAM. The emblem program for authorized cannabis stores.

PROGRAM ADMINISTRATOR. The Director of the Los Angeles County Department of Public Health, or his or her designee.

(D) Emblem; significance. The emblem, when displayed on the emblem placard in accordance with the provisions of this section, shall serve as notice to the public that the commercial cannabis business to which the emblem placard was issued is an authorized cannabis store at the time of issuance and is in compliance with all applicable public health laws and regulations as determined during the most recent public health inspection. The emblem and emblem placard shall not grant any rights or remedies, and shall not be construed as granting any rights or remedies, to any person or entity in possession of the emblem or emblem placard. The emblem and emblem placard may not be sold, assigned, or otherwise transferred, and shall not be removed from the premises of the authorized cannabis store to which the emblem placard was issued, except as specified in this section.

(E) Emblem placard; procedure for issuance, posting, inspection, suspension, and revocation.

(1) Issuance. The Program Administrator shall cause an emblem placard to be issued to all authorized cannabis stores.

• (2) Posting.

(a) The Program Administrator shall cause the emblem placard to be posted at the business premises so as to be clearly visible to the general public and to patrons entering the business premises. For the purposes of this section, CLEARLY VISIBLE TO THE GENERAL PUBLIC AND TO PATRONS ENTERING THE STORE’S PREMISES means:

1. Posted in the front window of the retail business within five feet of the front door or posted in a display case mounted to the outside front wall of the store within five feet of the front door; or

2. Posted in a location as directed and determined in the discretion of the Program Administrator to ensure proper notice to the general public and to patrons.

(b) An authorized cannabis store shall, at its sole cost, make any reasonable modifications to the exterior or interior of its business premises that the Program Administrator determines are necessary to accommodate the posting of the emblem placard, including but not limited to modifications to lighting, window treatments, coverings, tinting, glazing, and painting, and the mounting of a display case on the exterior of the premises.

(c) An authorized cannabis store shall not alter, move, remove, or otherwise modify an emblem placard posted at its business premises pursuant to this section unless ordered or authorized to do so in writing by the Program Administrator.

(3) Inspection. Not less than once per year, the Program Administrator shall cause an inspection to take place at the premises of an authorized cannabis store to ensure the emblem placard is displayed and the health information advisory is provided or made accessible to consumers in compliance with the provisions of this section. Inspections shall take place during ordinary business hours and may be unannounced. The Program Administrator may conduct an inspection more than once per year if the Program Administrator determines more frequent inspections are necessary to ensure compliance with the program. Inspections may be conducted in conjunction with or separately from other regular inspections.

(4) Suspension. Upon a determination by the Program Administrator that a licensee ceases to keep all applicable licenses, permits, or authorizations current, valid, and in good standing, the Program Administrator may immediately suspend the licensee’s participation in the program. Written notice will be provided to the licensee detailing the reason for the suspension, along with instructions for reinstatement. The emblem placard will be removed by the Program Administrator, or an authorized representative, until the licensee takes the necessary steps for reinstatement into the program.

(5) Revocation. Upon a determination by the Program Administrator that a licensee ceases to be an authorized cannabis store for any reason, the Program Administrator shall immediately issue an order in writing to the store to remove the emblem placard from public view and return the emblem placard to the Program Administrator, or provide

other evidence satisfactory to the Program Administrator that the emblem placard has been destroyed. The Program Administrator’s determination shall be final and not subject to appeal.

(F) Health information advisory. An authorized cannabis store, at the direction of the Program Administrator, shall provide or make accessible to the consumer a health information advisory created by the Los Angeles County Department of Public Health. The health information advisory shall be supplied to the store by the Program Administrator. The store shall provide the health information advisory to the consumer at the point of sale. The Program Administrator may also supply health information advisory materials in pamphlet or other written form to an authorized cannabis store, and require those materials be displayed and made accessible to consumers in the store's customer services areas.

(G) Violations.

(1) It shall be unlawful for any person to engage in the retail sale of medical or adult-use cannabis or cannabis products in the city unless it is an authorized cannabis store and displays an emblem placard in compliance with the provisions of this section.

(2) It shall be a misdemeanor and an unfair business practice subject to criminal and civil enforcement to display or use the emblem or emblem placard, or any placard, symbol, or rendering that is substantially or confusingly similar to the emblem or emblem placard, in connection with any commercial cannabis activity for the purpose of falsely holding oneself out as an authorized cannabis store.

(3) City and the Program Administrator may conduct inspections of any commercial cannabis business displaying the emblem or emblem placard, or a substantially or confusingly similar emblem or emblem placard, on its premises, for the purposes of determining whether the store is an authorized cannabis store.

(4) Where city and county laws conflict, commercial cannabis businesses shall comply with all city laws, rules, and regulations unless the issue directly relates to matters of public health that are regulated by the county pursuant to this program.

(Ord. 1520, passed 11-5-25)