Banning Municipal Code Ch. 5.35 Cannabis Regulatory Permits

For the purpose of this chapter, the following words and phrases shall be defined as follows:

"Applicant" means an owner applying for a cannabis regulatory permit pursuant to this chapter.

"Bureau" means the Bureau of Cannabis Control within the California Department of Consumer Affairs.

"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by section 11018.5 of the Health and Safety Code.

"Cannabis business" means a cultivation facility, a manufacturing facility, testing laboratory facility, distribution facility, or a cannabis microbusiness.

"Cannabis distribution" means the procurement, sale and transport of cannabis goods between state licensed cannabis retailers, manufacturers, cultivators and testing laboratories.

"Cannabis distribution facility" means a facility that transports cannabis goods between state licensed cannabis retailers, manufacturers, cultivators and testing laboratories.

"Cannabis goods" means cannabis, including dried flower, and cannabis products.

"Cannabis microbusiness" means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) a cannabis retailer (as defined in Section 5.33.010), (2) a manufacturing facility, (3) a cultivation facility with canopy space of less than 10,000 square feet, and (4) a cannabis distribution facility. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses.

"Cannabis products" has the same meaning as in section 11018.1 of the Health and Safety Code.

"Canopy space" means the designated areas at a cultivation facility that will contain mature plants at any point in time.

"City" means the City of Banning.

"City manager" means the city manager or his/her designee.

"Convicted" or "conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted.

"Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or engaging in any other cannabis activity that requires a state license issued by a licensing authority.

"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

"Cultivation facility" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

"Extraction" means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.

"Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

"Indoors" means within a fully enclosed and secure structure.

"Infusion" means a process by which cannabis, cannabinoids, or cannabis concentrates, are directly incorporated into a product formulation to produce a cannabis product.

"Licensing authority" means the Bureau of Cannabis Control; CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA); the California Department of Public Health's Manufactured Cannabis Safety Branch; or any other state cannabis licensing authority.

"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

"Manufacturing facility" means a location that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

"Outdoors" means any area or location not specifically meeting the definition of indoors.

"Owner" means any of the following:

1. A person with an aggregate ownership interest of twenty percent or more in the person applying for a permit or a permittee, unless the interest is solely a security, lien, or encumbrance.

2. The chief executive officer of a nonprofit or other entity.

3. A member of the board of directors of a nonprofit.

4. An individual who will be participating in the direction, control, or management of the person applying for a permit. An owner who is an individual participating in the direction, control, or management of the commercial cannabis business includes any of the following:

a. A partner of a cannabis business that is organized as a partnership.

b. A member of a limited liability company of a cannabis business that is organized as a limited liability company.

c. An officer or director of a cannabis business that is organized as a corporation.

"Nonvolatile solvent" means any solvent used in the extraction process that is not a volatile solvent. For purposes of this chapter only, nonvolatile solvents include carbon dioxide and ethanol.

"Package" means any container or receptacle used for holding cannabis or cannabis products.

"Permit" means a cannabis regulatory permit issued under this chapter.

"Permittee" means any person holding a permit under this chapter.

"Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, non-profit, or any other group or combination acting as a unit, and the plural as well as the singular.

"Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted.

"Significant discrepancy" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a permittee's inventory.

"Testing laboratory" means a laboratory, facility, or entity in the city that offers or performs tests of cannabis or cannabis products and that is both of the following:

1. Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

2. Licensed by the bureau.

"Volatile solvent" means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.

(Ord. No. 1524, § 2, 7-10-18; Ord. No. 1565, § 6, 7-14-20; Ord. No. 1577, § 9, 9-28-21)

A. No person shall establish, operate or engage in commercial cannabis activity within the city unless the person has:

1. A valid business license;

2. A valid permit issued by the city pursuant to this chapter;

3. A valid conditional use permit issued pursuant to Chapter 17.53; and

4. A valid license issued by a licensing authority to conduct the specific commercial cannabis activity that is being conducted on the premises.

B. The city manager, in consultation with the chief of police, shall evaluate and issue or deny a permit within forty-five days of receipt of a completed application.

C. Any permit that is issued shall not go into effect unless a conditional use permit is also issued by the city council pursuant to Chapter 17.53.

(Ord. No. 1524, § 2, 7-10-18)

A. No permit shall be issued unless the applicant pays the nonrefundable application fee and a nonrefundable permit fee in amounts to be established by resolution of the city council.

B. A permit issued pursuant to this chapter is valid for a term of one year from the date of issuance. Renewal terms shall not exceed one year.

(Ord. No. 1524, § 2, 7-10-18)

A. Each cannabis business shall obtain a separate permit. Permits are nontransferable.

B. An owner of a cannabis business may apply for a permit or permit renewal by filing an application with the city manager. Only an owner of a cannabis business may submit an application for a permit or permit renewal.

C. No person shall knowingly make a false statement of fact or knowingly omit any information that is required in an application for a permit or permit renewal.

D. The application shall be on a form approved by the city manager and shall include, but not be limited to, the following:

1. The type of cannabis business the applicant seeks to operate in the city, and a description of the commercial cannabis activity that will be conducted on the premises.

2. Payment of a nonrefundable application fee in an amount to be established by resolution of the city council.

3. A description of the statutory entity or business form that will serve as the legal structure for the applicant; a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement; and the name and address of its agent for purposes of service of process.

4. A list of every fictitious business name the applicant is operating under.

5. The first and last name, primary phone number, date of birth, social security number, and mailing address of each owner. If the permit is to be held in the name of a business entity, the owner shall also provide the legal name of the business.

6. The current name and primary and secondary telephone numbers and email addresses of at least one twenty-four hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the cannabis business.

7. If applicable, the business trade name ("DBA") of the applicant.

8. A list of the license types and the license numbers issued by any licensing authority that the applicant holds, including the date the license was issued, the date the license will terminate and the licensing authority that issued the license.

9. Whether the applicant, or any owners, has been denied a license or has had a license suspended or revoked by any licensing authority. The applicant shall identify the type of license applied for, the name of the licensing authority that denied the application, and the date of denial.

10. The assessor's parcel number and the physical address of the premises where business will be conducted, the telephone number for the premises, and the website address and email address of the applicant's business. If the business will be conducted on a lot that is vacant at the time that the application is submitted, then the applicant shall amend the application at such time that a physical address and telephone number is issued for the cannabis business.

11. The cannabis business' federal employer identification number.

12. The physical address of any other premises owned or operated by the applicant and a brief summary of the business operations at each premises.

13. A complete list of every individual, who is not an owner, that has a financial interest in the cannabis business.

14. A complete list of every owner of the cannabis business. Each individual named on this list shall submit the following information:

a. The full name of the owner.

b. The owner's title within the applicant entity.

c. The owner's date of birth and place of birth.

d. The owner's social security number or individual taxpayer identification number.

e. The owner's mailing address.

f. The owner's home, business, or mobile telephone number and email address.

g. The owner's current employer.

h. The owner's percentage of ownership interest held in the applicant entity.

i. Whether the owner has an ownership or a financial interest in any other cannabis business licensed by a licensing authority.

j. A copy of the owner's government-issued identification that includes the name, date of birth, physical description and picture of the owner.

k. A copy of a DOJ background check for each owner and person with a financial interest in the cannabis business procured from a Live Scan provider.

l. If applicable, a copy of any certificate of rehabilitation issued under Penal Code Section 4852.01 or dismissal issued pursuant to Penal Code Section 1203.4 or 1203.41.

m. If applicable, a detailed description of any suspension or revocation of a cannabis related license or sanctions for unlicensed or unlawful cannabis activity by a state or local governmental agency against the applicant or any of its owners or any business entity in which the applicant or any of its owners was an owner or officer within the five years immediately preceding the date of the application.

n. If applicable, a detailed description of any civil and/or criminal suit and/or judgment relating to unlawful cannabis activity against the applicant or any of its owners or a business entity in which the applicant or any of its owners was an owner or officer within the five years immediately preceding the date of the application.

15. A list of all owners, managers, and employees that are authorized to carry concealed weapons.

16. A written, notarized statement from the owner of the property where the cannabis business will operate evidencing unqualified consent to the applicant operating a cannabis business on the property. The statement must specify the street address (unless the property is a vacant lot) and assessor's parcel number for the premises. The statement shall also contain the name, business address, email address and telephone number of the property owner(s) (whether business entity or individual). If applicable, a copy of the rental agreement shall also be provided.

17. If the applicant is the landowner upon which the premises is located, a copy of the title or deed to the property.

18. Evidence that the cannabis business will be compliant with the location restrictions set forth in Business and Professions Code Section 26054(b) and the zoning restrictions set forth in Title 17 of this Code.

19. A premises diagram which meets the requirements set forth in Section 5006 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

20. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on premises of the cannabis business. The security plan must be prepared by a licensed security company or individual licensed by the state. The license number shall be on the face of the security plan.

21. A detailed plan describing the air treatment system, or other methods which will be implemented to completely prevent odors generated from cannabis from being detected outside the buildings on the cannabis business site.

22. The proposed hours of operation.

23. Authorization and consent for city staff and the police department to seek verification of the information contained within the application.

24. An agreement whereby the applicant:

a. Releases the City of Banning, its agents, officers, elected officials, employees and attorneys, from any and all claims, injuries, damages or liabilities of any kind arising from any repeal or amendment of this chapter or any other provision of this Code, and any arrest or prosecution of the applicant or its managers, agents, employees, members or volunteers for violation of state or federal laws; and

b. Defends, indemnifies and holds harmless the City of Banning, and its agents, officers, elected officials, employees, and attorneys from and against any and all claims or actions brought by adjacent or nearby property owners or any other parties for any damages, injuries or other liability of any kind arising from operations at the cannabis business.

25. Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true and accurate. I understand that a misrepresentation of fact, whether intentional or not, is cause for rejection of this application, denial of the permit, or revocation of a permit issued.

D. Nothing in this section is intended to limit the city manager's ability to request additional information the city manager deems necessary or relevant to determining an applicant's suitability for a permit or renewal of a permit. An applicant shall provide any additional information requested by the city manager no later than seven days after the request, unless otherwise specified by the city manager.

(Ord. No. 1524, § 2, 7-10-18; Ord. No. 1565, § 7, 7-14-20)

In addition to requirements set forth in Section 5.35.040 above, an application shall also include the following, as applicable:

A. Cannabis Cultivation Facilities. An application to operate a cannabis cultivation facility shall also contain the following information:

1. A site plan and floor plan prepared by a registered civil engineer clearly identifying that the proposed canopy space is a minimum of ten thousand square feet in size, and a maximum of twenty-two thousand square feet in size, and that the cultivation activities will occur indoors only.

B. Cannabis Manufacturing Facilities. An application to operate a cannabis cultivation facility shall also contain the following information:

1. A detailed description of the manufacturing activity that will be conducted on the cannabis business including the type of activity that will be conducted (extraction, infusion, packaging, labeling), a description of the extraction and/or infusion methods, and the types of products that will be manufactured, packaged and labeled. The description must include a statement that volatile solvents will not be used by the manufacturing facility.

C. Cannabis Laboratory Testing Facilities. An application to operate a cannabis cultivation facility shall also contain the following information:

1. Proof of ISO/IEC 17025 accreditation by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

D. Cannabis Distribution Facilities.

1. A detailed site plan showing where cannabis and cannabis products will be stored, and the entry/exit points of where cannabis and cannabis products will be moved off-site and received into the distribution facility.

2. A list of the individuals and vehicles authorized to conduct transportation on behalf of the distributor. This list shall be updated within seven business days of a new employee being hired to transport cannabis goods or a new vehicle being purchased or leased by the distribution facility to transport cannabis goods.

E. Cannabis Microbusiness.

1. Detailed plans prepared by a registered civil engineer showing the following:

a. If the cannabis microbusiness includes a cultivation component, a site plan and floor plan identifying (i) the location of proposed canopy space, (ii) that the canopy space is less than ten thousand square feet in size, and (iii) that cannabis cultivation will occur indoors only.

b. If the cannabis microbusiness includes a distribution component, a site plan and floor plan identifying where cannabis and cannabis products will be stored, and the entry/exit points of where cannabis and cannabis products will be moved off-site and received into the cannabis business.

c. If the cannabis microbusiness includes a retail component, a premises diagram that meets the requirements set forth in Section 5006 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

2. If the cannabis microbusiness includes a manufacturing component, a detailed description of the manufacturing activity that will be conducted on the cannabis business including the type of activity that will be conducted (extraction, infusion, packaging, labeling), a description of the extraction and/or infusion methods, and the types of products that will be manufactured, packaged and labeled. The description must include a statement that volatile solvents will not be used by the manufacturing facility.

3. If the cannabis microbusiness includes a distribution or retailer component, a list of the individuals and vehicles (make, model, license plate number) authorized to conduct transportation or delivery on behalf of the cannabis business. This list shall be updated within seven business days of a new employee being hired to transport cannabis goods or a new vehicle being purchased or leased by the cannabis business to transport cannabis goods.

4. If the cannabis microbusiness includes a retailer component, then the neighborhood context map identified in Section 17.53.040(D) above must also identify any residentially zoned parcel that is located within two hundred feet of the premises.

(Ord. No. 1524, § 2, 7-10-18; Ord. No. 1565, § 8, 7-14-20; Ord. No. 1577, § 10, 9-28-21)

A. The city manager, in consultation with the police chief, shall evaluate the application and determine whether to approve or deny the permit or permit renewal application. The city manager shall deny a permit application or the renewal of a permit application if he or she determines that one or more of the following conditions exist:

1. The applicant has not paid all fees required for consideration of the application.

2. The application is incomplete, filed late, or is otherwise not responsive to the requirements of this chapter.

3. The application contains a false or misleading statement or omission of a material fact.

4. The applicant, or any owner or person with a financial interest in the cannabis business, is not at least twenty-one years old.

5. The applicant, or any owner or person with a financial interest in the cannabis business, has unpaid and overdue administrative penalties imposed for violations of this Code.

6. The applicant, or any owner or person with a financial interest in the cannabis business, has an unpaid civil judgment imposed for violation(s) of this Code.

7. The applicant, or any owner or person with a financial interest in the cannabis business is delinquent on any fee, charge for service or tax levied by the State of California or the city.

8. The applicant, or any owner or person with a financial interest in the cannabis business, has, within the five years preceding the date the application is filed with the city manager, been (1) convicted of engaging in unlawful commercial cannabis activity; (2) issued an uncontested administrative citation by a city, county, or city and county for engaging in unlawful cannabis-related activity; or (3) been the subject of a lawsuit for engaging in unlawful cannabis-related activity in which the applicant or owner was not the prevailing party.

9. The applicant, or any owner or person with a financial interest in the cannabis business, has been denied a license or permit or other authorization to engage in commercial cannabis activity by a state or local licensing or permitting authority.

10. The applicant, or any owner or person with a financial interest in the cannabis business is employed by the city's police department or the city's community development department.

11. The applicant, or any of owner or persons with a financial interest in the cannabis business, has been convicted of any crime set forth in Business and Professions Code Section 26057(b)(4), Fish and Game Code Sections 12025 or 12025.1, Penal Code Section 186.22 or any other offense which is substantially related to the qualifications, functions, or duties of the cannabis business for which application is made. In determining whether such offense is "substantially related," the city manager shall consult with the city attorney and thereafter apply the analysis set forth in Section 5017 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

12. The premises or the operation of the applicant's cannabis business, as described in its application, would fail to comply with any provision of this Code, or any state law or regulation.

13. For permit renewal applications, the premises is substantially different from the diagram submitted by the applicant, in that the size, layout, location of common entryways, doorways or passage ways, means of public entry or exit, or limited access areas within the premises is not the same.

14. Operation of the cannabis business in the manner proposed poses a threat to the public health, safety or welfare, or violates any provision of this chapter.

B. If none of the above-referenced conditions exist, the city manager shall approve the permit application.

C. Within sixty days of receiving a completed application for a permit, the city manager shall notify the applicant in writing whether the permit application is approved or denied. If the city manager denies the permit, the notice of denial shall set forth the reasons for denial and advise the applicant of the right to contest the denial pursuant to the procedures set forth in Section 5.35.130. Any notice required pursuant to this subsection shall be sent by certified mail, return receipt requested.

(Ord. No. 1524, § 2, 7-10-18)

A. Upon approval of a permit or renewal of a permit, the city manager may impose conditions in excess of the requirements set forth in this chapter including, but not limited to, conditions relating to the operation of any cannabis business and restrictions relating to the deployment or use of the types of equipment used on the premises.

B. During the term of any permit, the city manager may impose additional conditions on a permit when reasonably necessary to abate a violation of this Code or to protect the public health, safety or welfare.

C. Review of any decision by the city manager to impose additional conditions on a permit pursuant to this section shall be pursuant to Section 5.35.130.

(Ord. No. 1524, § 2, 7-10-18)

A. To renew a permit, a completed permit renewal form, payment of the permit renewal application fee, payment of the permit fee, and, if applicable, the late fee required by subsection D of this section shall be received by the city no earlier than sixty calendar days before the expiration of the permit and no later than 5:00 p.m. on the last business day before the expiration of the permit. Failure to receive a notice for permit renewal does not relieve a permittee of the obligation to renew all permits as required.

B. An application for a permit renewal shall contain the following:

1. The name of the permittee. For a permittee who is a business entity, the permittee shall provide the legal business name of the applicant.

2. The permit number and expiration date.

3. The permittee's address of record and premises address.

4. An attestation that all information provided to the city in the original application for a permit is accurate and current.

C. In the event the permit is not renewed prior to the expiration date, the permittee shall not engage in commercial cannabis activity until the permit is renewed.

D. A permittee may submit a permit renewal application up to thirty calendar days after the permit expires. In addition to the application fee for renewal of the permit, the permittee submitting a renewal application pursuant to this subsection shall pay a late fee in an amount established by resolution of the city council. The payment of a late fee shall not be grounds for a defense against prosecution or enforcement of this Code on the basis that the permittee operated a cannabis business without a valid or unexpired permit nor shall it be considered as a setoff to any assessment, fine, penalty or recoupment of costs of enforcement attributable to said violation.

E. A permit that has expired and has not been renewed within thirty calendar days after expiration shall be deemed to have been forfeited.

F. Review of any decision by the city manager to deny a request to renew a permit shall be pursuant to section 5.35.130.

(Ord. No. 1524, § 2, 7-10-18)

A. A permittee shall not, without the prior written approval of the city manager, make a physical change, alteration, or modification of the premises that alters the premises or the use of the premises from the premises diagram filed with the permit application. Material or substantial changes, alterations or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway or passage alters or changes limited-access areas within the premises.

B. A permittee whose premises is to be materially or substantially changed, modified, or altered is responsible for filing a request for premises modification with the city manager. The request shall be in writing and include:

1. A new premises diagram that conforms to the requirements set forth in section 5006 of title 16 of the California Code of Regulations.

2. A fee in an amount to be established by resolution of the city council.

3. Any additional documentation or information that the city manager deems necessary to consider the request.

C. A permittee shall not sublet the premises.

(Ord. No. 1524, § 2, 7-10-18)

A. A permittee shall ensure that the city manager is notified in writing of the criminal conviction of a permittee, owner, or employee or when a permittee, owner, or employee has been charged with a criminal offense. Notice shall either be by mail or electronic mail and shall occur within forty-eight hours of the conviction or charge. The written notification shall include the date of conviction or charge, the court docket number, the name of the court in which the permittee was convicted or charged, and the specific offense(s) for which the permittee was convicted or charged.

B. A permittee shall ensure that the city manager is notified in writing of a civil penalty or judgment rendered against the permittee or any owner either by mail or electronic mail, within forty-eight hours of delivery of the verdict or entry of judgment, whichever is earlier. The written notification shall include the date of verdict or entry of judgment, the court docket number, the name of the court in which the matter was adjudicated, and a description of the civil penalty or judgment rendered against the permittee.

C. A permittee shall ensure that the city manager is notified in writing of the revocation or suspension of a license or other authorization for a cannabis business issued by a licensing authority within forty-eight hours of receiving notice of the revocation. The written notification shall include the name of the licensing authority involved, a written explanation of the proceeding or enforcement action, and the specific violation(s) that led to revocation or suspension.

(Ord. No. 1524, § 2, 7-10-18)

A. A permittee shall notify the city manager and the chief of police within twenty-four hours of discovery of any of the following situations:

1. The permittee discovers a significant discrepancy in its inventory.

2. The permittee becomes aware of, or has reason to suspect, diversion, theft, loss or any other criminal activity pertaining to the operations of the permittee by any owner, person with a financial interest in the cannabis business, employee, agent or volunteer of the cannabis business or by any third party.

3. The permittee becomes aware of, or has reason to suspect, any breach of security.

B. The notification required by this section shall be in writing and include the date and time of discovery of the occurrence of the theft or loss, the date of the occurrence of the theft or loss and a description of the incident including, when applicable, the items that were taken or lost.

(Ord. No. 1524, § 2, 7-10-18)

A. The city manager may suspend, modify, further condition or revoke any permit pursuant to the provisions of this chapter for any of the following reasons:

1. The permittee, or any of its owners, has violated a term or condition of its permit issued pursuant to this chapter or a term or condition of a license issued by a licensing authority.

2. The permittee, or any of its owners, has violated this Code or the laws or regulations of the state.

3. The permittee or any other person performed work as an employee or volunteer or acquired a financial interest in the applicant as an owner without first undergoing fingerprinting and a DOJ/NCIC background check.

4. The permittee failed to pay a fine or administrative penalty when due.

5. The permittee failed to take reasonable steps, as defined in section 5808 of title 16 of the California Code of Regulations, as the same may be amended from time to time, to correct nuisance conditions on the premises, including the immediately adjacent area that is owned, leased, or occupied by the permittee, within a reasonable time after receipt of notice to abate the condition.

6. The permittee knowingly engaged in the illegal sale, or negotiations for the sale, of controlled substances, as defined in Section 5805 of Title 16 of the California Code of Regulations, upon the premises. Successive sale, or negotiations for sale, over any continuous period of time shall be deemed evidence of permission.

B. A permittee whose permit has been suspended shall conspicuously display a notice on the exterior of the permittee's premises for the duration of the suspension, and ensure that the notice remains continuously in place for the time specified. The notice shall be in at least twenty-four point type and provide as follows:

NOTICE OF SUSPENSION

THE CANNABIS REGULATORY PERMIT ISSUED FOR THIS PREMISES HAS BEEN SUSPENDED FOR VIOLATION OF THE BANNING MUNICIPAL CODE

C. A permittee whose permit has been revoked shall conspicuously display a notice on the exterior of the premises indicating that the permit has been revoked. The notice shall remain continuously on the premises for at least fifteen calendar days. The notice shall be in at least twenty-four point type and provide as follows:

NOTICE OF REVOCATION

THE CANNABIS REGULATORY PERMIT ISSUED FOR THIS PREMISES HAS BEEN REVOKED FOR VIOLATION OF THE BANNING MUNICIPAL CODE

D. Action taken by the city manager with respect to the suspension, modification, or revocation of a cannabis regulatory permit shall be final and conclusive. Any permit aggrieved by the suspension, modification or revocation of a cannabis regulatory permit may obtain review of such decision by appeal to the city council pursuant to section 5.35.130.

(Ord. No. 1524, § 2, 7-10-18)

A. The city manager may initiate suspension or revocation proceedings or impose additional conditions on a permittee by sending written notice to the permittee of the disciplinary action and grounds for the action by certified mail return receipt requested, to the permittee's business address, as set forth in the permit. The notice shall inform the permittee of its right to appeal the determination of the city manager by sending written notice of appeal and the grounds for such appeal to the city manager no later than ten calendar days after the date in which the notice of suspension, revocation or intention to impose additional conditions was mailed. Failure to timely appeal shall result in a forfeiture of the right of appeal, and the determination of the city manager shall be final.

B. If an application for a permit was denied by the city manager, the applicant shall have ten calendar days from the date the notice of the disposition was deposited in the mail within which to appeal the denial of the application to the city council. If the tenth calendar day falls on a day the city is closed, the time shall be extended to the next business day.

C. The appeal shall be submitted in writing to the city clerk. Upon receipt of a timely notice of appeal, that is accompanied by the appropriate filing fee in an amount set by resolution of the city council, the city clerk shall set the matter for hearing. Unless continued for good cause demonstrated, appeals shall be heard by the city council within sixty calendar days of the date notice of appeal was received by the clerk. If an appeal is timely and properly filed together with the filling fee, any suspension or revocation is stayed during the pendency of the appeal.

D. If the appeal is timely and properly filed together with the filing fee, the city clerk shall mail notice of the date, time and place of a hearing before the city council to the applicant at least ten days prior to the hearing. The hearing shall be commenced at the earliest possible date authorized by law.

E. After considering all of the testimony and evidence submitted at said hearing, the city council shall decide the appeal based upon a preponderance of the evidence and issue written findings of fact no later than ten days after the hearing. Hearings before the city council shall not be bound by formal rules of evidence. Hearsay evidence may be received; however, in no event shall a decision be based solely on hearsay evidence.

F. Within five business days after the city council acts on the appeal, the city clerk shall send to the applicant, by certified mail, return receipt requested, written notice of the disposition of the appeal.

G. Any permittee aggrieved by the decision of the city council may obtain review of the order within ninety days of notice by filing with the Riverside County Superior Court a petition for review pursuant to California Code of Civil Procedure Section 1094.5. For purposes of this subsection, notice shall be the date that the decision of the city council is mailed by first-class mail, postage prepaid, with a certificate of mailing.

(Ord. No. 1524, § 2, 7-10-18)

A. The city manager may eliminate, modify or add to any condition imposed on a permittee when he or she deems such action reasonably necessary to protect the health, safety or welfare of the public or to otherwise secure compliance with the requirements set forth in this Code. The action taken on the permit and the grounds for such action shall be made in writing and sent by certified mail return receipt requested to the permittee's business address, as set forth in the permit.

B. The action by the city manager taken pursuant to this section may be made in conjunction with disciplinary action, in lieu of disciplinary action, or independent of disciplinary action.

C. Any person aggrieved by the action of the city manager may appeal the decision pursuant to the procedures set forth in Section 5.35.130.

(Ord. No. 1524, § 2, 7-10-18)

A. A permittee shall notify the city manager in writing within ten calendar days of any change to any item listed in the application. The notification shall be signed by an owner.

B. No person or entity may gain a financial interest in the permittee if said person or entity is determined by the city manager to have a disqualifying conviction within the meaning of Business and Professions Code Section 26057 or is otherwise barred by reason of this chapter.

C. If one of more of the owners of a permittee change, a new permit application and fee shall be submitted to the city within ten business days of the effective date of the ownership change. A change in ownership occurs when the person receiving its interest in the cannabis business meets the definition of an owner. A change in ownership does not occur when one or more owners leave the business by transferring their ownership interest to the other existing owner(s).

(Ord. No. 1524, § 2, 7-10-18)

A. The procedures set forth in this chapter shall be cumulative and in addition to any other procedure or legal remedy provided for in this Code or the laws of the state. Nothing in this chapter shall be deemed to prevent the city from commencing alternative administrative, civil or criminal proceedings. Any violation of this chapter may be subject to injunctive relief, revocation of any permit issued by the city, disgorgement and payment to the city of any and all money unlawfully obtained, costs of abatement, investigation and attorney fees or any other relief or remedy available at law or equity.

B. The city attorney is authorized to institute administrative action pursuant to chapters 1.20 through 1.28 of this Code and to institute civil or criminal action in the Riverside County Superior Court in order to enforce the provisions of this chapter and those provisions set forth in title 17 of this Code relating to land use for cannabis businesses.

C. A violation of any section within this chapter is a public nuisance.

(Ord. No. 1524, § 2, 7-10-18)

All permittees and owners shall be jointly and severally liable for violation of any provision set forth in this chapter.

(Ord. No. 1524, § 2, 7-10-18)