Belmont Municipal Code Art. III Cannabis Businesses

This chapter establishes standards for operation of cannabis businesses that are permitted, but which have the potential to create significant effects on the community and surrounding properties.

(Ord. No. 2024-1176, § 1, 2-13-24)

The definitions in this section apply to the words and phrases use in this article unless the context clearly indicates otherwise.

"Cannabis" means all the following:

(1) Cannabis as defined by Business and Professions Code Section 26001(f).

(2) Any other strain or varietal of the genus Cannabis not included in Business and Professions Code Section 26001(f) that may exist, be discovered or developed, whether growing or not.

"Cannabis products" is defined in Business & Professions Code Section 26001.

"Cannabis retail" means a use involving the retail sale of cannabis or cannabis products to customers at fixed located location or by delivery.

"Cannabis distribution" means a use involving the procurement, sale, and transport of Cannabis or Cannabis Products between businesses for resale.

"Cannabis Business" means any business operating a cannabis retail or a cannabis distribution use, either as the sole use or in combinations with other uses, on or from property located within the City of Belmont and includes not-for-profit retail and distribution uses.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) This article applies to all cannabis businesses operating within the City of Belmont except as provided in subsection (b).

(b) This article does not apply to a cannabis business operating from a fixed location outside the City of Belmont whose only business contact with the City is the mobile delivery of cannabis to a consumer within the City.

(Ord. No. 2024-1176, § 1, 2-13-24)

It is unlawful for any person to operate a cannabis business within the City unless the business is registered and holds a valid regulated business registration certificate in good standing under this chapter.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) A person desiring to register a cannabis business must submit a complete registration application to the registration authority and pay an application fee as provided in Section 13-5.

(b) In addition to the application requirements in Section 13-6, the application must include the following.

(1) A site plan depicting:

(A) The building footprint;

(B) Boundary and property lines;

(C) On-site parking spaces and loading areas;

(D) Any changes to the site plan that have occurred since the original city building, fire, and planning division approval(s) and include a notation identifying the date the modification was approved by the city if such approval was required.

(2) A detailed security plan including:

(A) Narrative and annotated drawings of security camera and alarm system layout incorporating the operating standards in Section 13-56;

(B) Minimum number and training of security guards on duty;

(C) Patron screening procedure and queuing, if any, for admission to the establishment;

(D) Patron access points into the establishment and entry control protocol;

(E) Procedure for removal of disorderly or intoxicated patrons from the premises; and

(F) Procedure for ensuring dispersal of patrons from the establishment, on-site parking area, and public rights-of-way (e.g., sidewalk or street) within 50 feet of any entrance to the establishment.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) A cannabis business is disqualified from registration and possessing a City registration certificate to operate at a particular location if:

(1) An owner of the business does not currently possess a valid state cannabis business license in good standing to operate the business at the location;

(2) The application contains a material misrepresentation including false or misleading information, the application fails to include all required information, or a material fact is omitted;

(3) An owner of the business has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made which include, but not be limited to, the following:

(A) A violent felony, as specified in subdivision (c) of Section 667.5 of the Penal Code,

(B) A serious felony, as specified in subdivision (c) of Section 1192.7 of the Penal Code,

(C) Any crime involving dishonesty, fraud, deceit, violence, or moral turpitude,

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

(E) A felony for drug trafficking with enhancements under Health and Safety Code Section 11370.4 or 11379.8, or

(F) Any crime involving the possession sale, manufacture, distribution or transportation of a controlled substance;

(4) An owner of the business has within the last 10 years from the date of the pending application:

(A) made a material misrepresentation in an application for license, permit or other permission to operate a cannabis business in the City,

(B) had a cannabis business registration, a land use permit, or other approval revoked by the City, or

(C) while an administrative, civil or criminal proceeding was pending against the owner or the business for conduct arising out of the operation of a business, surrendered the business permit, a land use permit, or other approval issued by the City and necessary to operate the business;

(5) An owner of the business is or was, or owned a business or property that is or was, subject to court-issued injunction, abatement order, or other decree or adverse judgment under Civil Code Sections 3490 through 3496, Penal Code sections 11225 through 11235, Health and Safety Code sections 11570 through 11587, or Business and Professions Code Section 17200 through 17210;

(6) Subsection (3)(F) does not apply to a conviction for which the sentence, including any term of probation, incarceration, or supervised release, was completed more than ten years before the date of application; or

(7) The City receives credible information that the federal government will commence enforcement against the type of cannabis business or the local governments that regulate them.

(b) The registration authority may disqualify a cannabis business from registration if the authority finds based on a preponderance of evidence that:

(1) A responsible person committed any act that violates any requirement of Division 10 of the Business and Professions Code.

(2) An owner of the business has engaged in conduct comprising all of the elements of any crime identified in subsection (a).

(3) A responsible person has a history of committing, permitting or failing to prevent significant violations of City of Belmont Ordinances in relationship to the operation of the business.

(4) A responsible person had an approval from another jurisdiction to operate a cannabis business in that jurisdiction within the last 5 years and either:

(A) the jurisdiction revoked the approval, or

(B) while an administrative, civil or criminal proceeding was pending against the business, an owner, or personnel of the business for conduct arising out of the operation of the business, surrendered the approval.

(5) A responsible party has a history of committing, permitting or failing to prevent significant violations of federal, state or local employee wage and hours laws.

(c) As used in this section the term conviction includes convictions that are dismissed under Penal Code Section 1203.4, 1203.4a, or 1203.41 or any other provision allowing for dismissal of a conviction.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) Operating requirements. Cannabis businesses must operate in accordance with approved the operating plan, security plan, the standards in this section and in strict compliance with state law licensing and operational standards. To the extent that one or more standards conflict, the most prescriptive standard applies.

(b) Surveillance system. Cannabis businesses must be protected by a surveillance system that meets the standards of this section and any additional standards determined by the chief of police.

(1) The premises must be equipped with, and at all times be monitored by, a secure web-based security system that includes a security camera system and a security alarm system. Off-site monitoring and video recording storage of the premises by the operator or an independent third-party is authorized as long as standards exercised at the remote location meet or exceed all standards for on-site monitoring.

(2) Security camera video must be kept for a minimum of sixty days in a format that can be easily accessed for viewing.

(3) All surveillance video must be either recorded and stored off-site via a secure web-based security system or, for on-premise based security systems, backed up in real time to a secure, web-based storage provider.

(4) Operators must cooperate with all law enforcement investigations and provide video footage related to any such investigation upon request in a manner that is readily viewable by law enforcement at their offices.

(5) Alarm and camera systems must be equipped with a failure notification system that provides prompt notification to the operator of any prolonged surveillance interruption or failure of the system.

(6) All surveillance control and monitoring equipment, and records must be stored in a secured area that is only accessible to management staff. Operators must keep a current list of all authorized employees who have access to the surveillance system or alarm system.

(7) All security measures installed on the premises shall have the capability to remain fully operational during a power outage.

(c) Security Camera System.

(1) The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of an individual on the premises and the ability to capture license plates entering and exiting the premises.

(2) Security cameras must record continuously twenty-four hours per day, seven days per week.

(3) The recording system must continuous save footage to a web-based repository from which live feed may be monitored in real time and recordings reviewed.

(d) Security Camera Coverage.

(1) Security cameras must capture activity at all entry points to the property, and within all buildings and structures on the premises, including all entrances, exits, perimeter windows and all areas where customers and employees may have access, with the exception of any restroom area.

(2) Areas where cannabis is handled or kept must have camera placement in the room facing the primary entry door at a height which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.

(3) Cameras must be placed at each location where cannabis is handled and positioned to record all weighing, packaging, transport preparation, processing, or labeling activities.

(4) At least one camera must be dedicated to record the access points to the secured surveillance control and monitoring area.

(5) At each point-of-sale location, camera coverage must enable recording of the customer(s) and employee(s) facial features with sufficient clarity to determine identity.

(e) Security Alarm System.

(1) The premises must be protected by a professionally designed, installed and monitored security system that includes motion-sensor lighting, and burglar and panic alarms.

(2) An operator must maintain up-to-date and current records and existing contracts on the premises that describe the location and operation of security alarm systems, a schematic of security zones, the name of any alarm installation company, and the name of any monitoring company.

(3) All monitoring companies must be licensed by the Bureau of Security and Investigative Services to monitor motion-sensor lighting and alarms.

(4) Panic buttons must be installed in all commercial cannabis use premises with easy access by employees and all employees shall be properly trained on its use.

(5) Installation and operation of alarm systems must comply Belmont City Code Sections 18-50 through 18-63.

(6) The operator must immediately notify police dispatch of an activated alarm and must promptly verify if actual emergency exists that requires an emergency police response.

(f) Firearms.

(1) Weapons and firearms are prohibited on the premises, unless authorized by the police chief. This provision does not apply to peace officers engaged in official duty.

(2) The premises must be posted with a sign prohibiting firearms on the premises.

(g) Building security.

(1) All structures used for commercial cannabis use must have locking doors, with commercial-grade nonresidential locks, to prevent free access.

(2) Any security bars installed on the windows or the doors of the cannabis business must be installed only on the interior of the building in compliance with all applicable codes.

(3) Windows and roof hatches of the premises must be secured from the inside with effective means so as to prevent unauthorized entry, and must be equipped with latches or a similar mechanism that may be released quickly from the inside to allow exit in the event of emergency in compliance with all applicable provisions in this Code.

(4) Minimum lighting level of one foot-candle shall be provided at building entrances and in parking lot areas. All lighting must be fully shielded, downward casting and not spill over onto structures, other properties or the night sky. Exterior lighting on the premises must be balanced to complement surveillance systems to ensure all areas of the premises are visible, and provide increased lighting at all entrances to the premises. The lighting required must be turned on from dusk to dawn.

(5) The site security plan must include a photometric plan meeting these requirements and fixture details if new or upgraded lighting is required.

(h) Personnel.

(1) Owner-operators, employees and all persons working on the premises must be at least twenty-one years of age.

(2) Security guards must be state-licensed and provided by a reputable private security guard firm. All other persons working on the premises must be employees of the business subject to the operator's direction and control and not independent contractors except that the business may use an independent contractor to monitor the surveillance systems.

(3) All employees and persons working on the premises must submit to a background investigation and approval by the police chief before performing any work on the premises.

(4) The registration authority may deny authorization to a person to work on the premises if the person:

(A) Has been convicted of a crime of moral turpitude;

(B) Has been convicted of any misdemeanor or felony within the last ten years involving the following: the use of violence, force, fear, fraud or deception; or the unlawful possession, sale, manufacture, use, distribution or transportation of a controlled substance; or the use of money to engage in criminal activity; or the unlawful possession or use of a firearm; or

(C) Has been convicted of a crime that substantially relates to the qualifications, functions, or duties of the business or profession, including a felony conviction involving fraud, deceit, or embezzlement, a criminal conviction for the sale or provision of illegal controlled substances to a minor, or any criminal conviction for a crime moral turpitude as determined by the registration authority.

(4) An operator may not employ an individual or permit a person to work on the premises that has not received authorization from the registration authority.

(5) The registration authority is authorized to take all actions necessary in order to implement an employee authorization system, which may include requiring any employee of an operator to obtain a work permit from the City or requiring an employee of an operator to undergo future background investigations and pay a fee.

(6) The registration authority may revoke authorization to an employee based on any of the grounds for denial of authorization.

(7) The operator may appeal a registration authority decision to deny or revoke work authorization, and an affected employee may appeal a registration authority decision to revoke work authorization, the same manner and subject to the same requirements as an appeal of a registration decision under Section 13-12.

(i) Operational security.

(1) The operator must establish and promptly execute procedures to prevent individuals from remaining on the premises of the commercial cannabis use if they are not engaging in activities expressly related to the operations of the commercial cannabis use.

(2) The operator must establish a transportation plan that details the procedures for the safe and secure transport of cannabis, cannabis products, and currency to and from the premises, including the transfer of currency for remitting City tax payments.

(3) Except for products on display for sale at dispensaries during hours which the business is open to the public, all cannabis and cannabis products must be stored in a secured and locked room, safe, or vault that meets approval of the registration authority.

(4) To the fullest extent possible, all cannabis and cannabis products must be kept in a manner that prevents theft and loss, except for limited amounts used for the purposes of display or immediate sales.

(5) The operator must provide contact information for a liaison who will be available at all times to meet with the police chief regarding security measures and operational issues.

(j) Tracking.

(1) Operators must comply with any track and trace program established by the state or local agencies.

(2) Operators must maintain records tracking all cannabis production and products, and must make all records related to commercial cannabis use available to the City upon request.

(k) Police Notification. Operators must notify the police department immediately upon discovering any of the following:

(1) Significant discrepancies identified during inventory. Discrepancy exceeding two percent of inventory or State regulations must be reported.

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

(3) Any other breach of security.

(l) Alcohol Sales and consumption. Alcoholic beverages may not be sold, dispensed, or consumed on or about the premises of a cannabis business.

(m) Record Keeping and Auditing.

(1) An operator must maintain accurate records detailing all revenues and expenses of the cannabis business and all assets and liabilities, follow accepted cash handling practices and maintain a general ledger of cash transactions.

(2) At or before the time of the renewal of a permit, or at any time upon reasonable request of the City, each operator must file a sworn statement detailing on a per-month basis the number of sales, gross receipts, and applicable taxes paid or due to be paid during the permit period.

(3) On an annual basis, each operator must submit to the City a financial audit of the business conducted by an independent certified public accountant. Each operator is subject to a regulatory compliance review and financial audit as determined by the registration authority. The business must allow the City to access the books, records, accounts and all data relevant to its operations for purposes of conducting an audit or examination to determine compliance with this Code, conditions of approval, and applicable laws. Books, records, accounts and all relevant data must be produced no later than twenty-four hours after receipt of the City's request.

(4) An operator must maintain and provide to the registration authority upon request a current register of the names and the contact information (including the name, address, and telephone number) of

(A) anyone owning or holding an interest in the commercial cannabis use, and

(B) all the officers, managers, employees, and agents currently employed or otherwise engaged by the business.

(5) The operator must maintain a log of customer and neighborhood complaints and must make the log available to the City upon request. The log must contain at a minimum: the date of the complaint, the complainant, the nature of the complaint, and the action taken by the business to address the complaint.

(n) Persons allowed on premises.

(1) The operator must not allow anyone to remain on the premises who is not an on-duty employee, customer, vendor, supplier or contractor of the business or a public employee engaged in the course and scope of their employment.

(2) No person under the age of eighteen may be allowed on a cannabis business site at any time.

(3) No person between the age of eighteen and twenty-one may be allowed on a cannabis business premises unless the business holds a state-issued M-license and strictly complies with California Business and Professions Code Section 26140(c).

(4) All persons entering the premises must present a government issued photo identification except a public employee engaged in the course and scope of their employment.

(5) The operating plan must specify how the operator will comply with and enforce this section.

(o) Sales regulated. A cannabis business must not conduct or engage in the commercial sale of any product, good or service unless otherwise approved by the permit.

(p) Required Signage. The following signs, in measurements of not less than eight by ten inches, must be clearly and legibly posted in a conspicuous location inside the cannabis dispensaries where they will be visible to customers in the normal course of a transaction, stating:

"The sale of cannabis without a State license is illegal."

"Smoking cannabis on this property, within twenty feet of the dispensary, or in any public place is illegal under California law."

For M-licensees: "No one under the age of eighteen is allowed on the premises, unless they are a qualified patient or a primary caregiver."

For A-licensees: "No one under the age of twenty-one is be allowed on the premises."

(Ord. No. 2024-1176, § 1, 2-13-24)

To the maximum extent permitted by law, cannabis business operators must defend (with counsel acceptable to the City), indemnify and hold harmless the City and its respective officials, officers, employees, representatives, agents and volunteers from any liability, damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings, or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, city attorney or staff time, expenses or costs) against the City to attack, set aside, void or annul, any cannabis-related approvals and actions or for the failure of the operator to strictly comply with the conditions under which such permit is granted. The City may elect, in its sole discretion, to participate in the defense of an action and the operator must reimburse the City for its reasonable legal costs and attorneys' fees.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) The application must include an operating plan that specifies the manner in which operations will be handled and security provided, and which details the number of employees, hours and days of operation allowed and approved.

(b) The operating plan must provide that the cannabis dispensary require, at a minimum, a doctor's written recommendation in compliance with State law for medical cannabis sales, as well as a photo identification for any person entering the site.

(c) Any commercial cannabis use issued a permit must be operated in conformance with the approved operating plan and must meet any specific, additional operating procedures and measures as may be imposed as conditions of approval to ensure that the operation of the business is consistent with protection of the health, safety and welfare of the community and customers and will not adversely affect surrounding uses.

(Ord. No. 2024-1176, § 1, 2-13-24)