Bishop Municipal Code Ch. 5.32 Commercial Cannabis Activity

A. Purpose and intent.

1. It is the purpose and intent of this chapter to provide opportunities for cannabis businesses to operate in the city for both adult use cannabis and cannabis products, defined as cannabis or cannabis products that are intended for adults who are 21 years of age or older and who do not possess a physician's recommendation, and medical cannabis and medical cannabis products, while imposing regulations on the use of land to protect the city's neighborhoods, residents, and businesses from negative impacts.

2. It is a further purpose and intent of this chapter to regulate the cultivation, manufacturing, processing, testing, transporting, delivery, and distribution of cannabis and cannabis-related products in a manner which is responsible, which protects the health, safety, and welfare of the residents of the city, and to enforce rules and regulations consistent with state law. In part to meet these objectives, an annual permit shall be required in order to own and/or to operate a cannabis business within the city. Nothing in this chapter is intended to authorize the possession, use, or provision of cannabis for purposes which violate state or federal law.

3. The provisions of this chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the city, and are in addition to any permits, licenses and approval required under state, county, or other law.

B. Legal authority. Pursuant to Calif. Const. art. XI, § 5, and the provisions of the Medicinal and Adult Use of Cannabis Regulation and Safety Act, Business and Professions Code § 26000 et seq., the city is authorized to adopt ordinances that establish standards, requirements and regulations for local licenses and permits for cannabis and cannabis-related activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the state, or any of its departments or divisions, is the minimum standards applicable in the city to cannabis, and/or cannabis-related activity.

C. Compliance with laws. It is the responsibility of the owners and operators of the cannabis business to ensure that it is, at all times, 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 authorizing any actions which violate federal, state law or local law with respect to the operation of a cannabis business. It is the responsibility of the owners and the operators of the cannabis business to ensure that the cannabis business is, at all times, operating in a manner compliant with all applicable federal, state and local laws, the 2008 Attorney General Guidelines, any subsequently enacted state law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the cannabis business permit. Nothing in this chapter shall be construed as authorizing any actions which violate federal or state law with regard to the operation of a cannabis business.

(Code 1985, § 5.32.010; Ord. No. 572, § 4(5.32.010), 6-14-2021)

When used in this chapter, the following words shall have the meanings ascribed to them as set forth herein. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.

A. Abatement means the removal of cannabis plants and improvements that support cannabis cultivation that are maintained in violation of this chapter.

B. 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. The term "cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. The term "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, the term "cannabis" does not mean "industrial hemp" as defined by Health and Safety Code § 11018.5.

C. Cannabis business means any business or operation which engages in commercial cannabis activity.

D. Cannabis business permit means a regulatory permit issued by the city pursuant to this chapter to a cannabis business and is required before any cannabis activity may be conducted in the city. The initial permit and annual renewal of a cannabis business permit is made expressly contingent upon the business' ongoing compliance with all of the requirements of this chapter and any regulations adopted by the city governing the cannabis activity at issue.

E. Cannabis concentrate means manufactured cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product's potency. Resin from glandular trichomes from a cannabis plant is a concentrate for purposes of this division. An edible cannabis concentrate is not considered food, as defined by Health and Safety Code § 109935, or a drug, as defined by Health and Safety Code § 109925.

F. Cannabis product shall have the same meaning as in Health and Safety Code § 11018.1. Cannabis products are not considered food, as defined by Health and Safety Code § 109935, a drug, as defined by Health and Safety Code § 109925, or a cosmetic, as defined by Health and Safety Code § 109900.

G. Cannabis retailer shall have the same meaning as the definition appearing in Business and Professions Code § 26070(a)(1) and includes the operator of a dispensary as defined by this chapter.

H. Cannabis storefront retailer means a storefront retailer of a commercial cannabis business facility 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 to customers at a fixed location, including an establishment that also offers delivery of cannabis and cannabis products as part of a retail sale, which are open to the public, and includes a dispensary as defined by this chapter.

I. Cannabis non-storefront retailer means a non-storefront, delivery-only retailer as a commercial cannabis business facility 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 to customers, where the premises are non-storefront, closed to the public, and sales are conducted exclusively by delivery, where a vehicle is used to convey the cannabis or cannabis products to the customer from a fixed location.

J. Caregiver or primary caregiver has the same meaning as in Health and Safety Code § 11362.7.

K. Commercial cannabis activity includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this chapter or acting as a cannabis event organizer for temporary cannabis events.

L. Commercial cannabis business means a person, partnership, entity, corporation, company or other organization that conducts commercial cannabis activity.

M. Cultivation and commercial cultivation are defined as:

1. Cultivation means any activity, whether occurring indoors or outdoors, involving the propagation, planting, growing, harvesting, drying, curing, grading, and/or trimming of cannabis plants or any part thereof for any purpose, including medical cannabis; and

2. Commercial cultivation means only state-licensed indoor facilities for cannabis cultivation consisting solely of processing (drying, curing, trimming, and packaging of cannabis flower (corresponding with state CDFA cultivation license type for "processor")) or nursery operations (corresponding with state CDFA cultivation license type for "nursery").

N. Cultivation site means a facility or premises where cannabis is cultivated, propagated, planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities.

O. Delivery means the commercial transfer of cannabis or cannabis products to a customer. The term "delivery" also includes the use by a retailer of any technology platform.

P. Dispensary means a cannabis business facility 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, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale and includes both storefront and non-storefront cannabis retailers.

Q. Dispensing means any activity involving the retail sale of cannabis or cannabis products from a dispensary.

R. Distribution means the procurement, sale, and transport of cannabis or cannabis products between licensees.

S. Distributor means a licensee that is authorized to engage in the distribution of cannabis and cannabis products.

T. Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

U. Edible cannabis product means 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 of the Food and Agricultural Code (Food and Agricultural Code § 32501 et seq.). An edible cannabis product is not considered food, as defined by Health and Safety Code § 109935, or a drug, as defined by Health and Safety Code § 109925.

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

W. Live plants means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.

X. Manufacturer means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, as defined in this section, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

Y. Manufactured cannabis means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate or manufactured product intended for internal consumption or topical application.

Z. Manufacturing site means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis.

AA. MAUCRSA means the Medicinal and Adult Use of Cannabis Regulation and Safety Act, Business and Professions Code § 26000 et seq.

BB. Medical cannabis, or medical cannabis product means items, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Health and Safety Code § 11362.5, by a medicinal cannabis patient in the state, who possesses a physician's recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction.

CC. Outdoors means any location within the city that is not within a fully enclosed and secure structure.

DD. Parcel means property assigned a separate parcel number by the county assessor.

EE. Patient or qualified patient shall have the same definition as provided in Health and Safety Code § 11362.7 et seq. (i.e., a person who is entitled to the protections of Health and Safety Code § 11362.5). For purposes of this chapter, the term "qualified patient" shall also refer to qualified patients who have obtained an identification card from the state department of health services, as that term is defined by Health and Safety Code § 11362.7 et seq.

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

GG. Person with an identification card shall have the meaning given that term by Health and Safety Code § 11362.7.

HH. Premises means the designated structure and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee.

II. Private residence shall have the same meaning as is set forth in Health and Safety Code § 11362.2.

JJ. State license means a permit or license issued by the state or one of its departments or divisions under MAUSCRA to engage in cannabis activity.

KK. Testing laboratory means a facility, entity, or site 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 the cannabis industry in the state.

2. Licensed by the bureau of cannabis control within the department of consumer affairs.

LL. Topical cannabis means a product intended for external use. A topical cannabis product is not considered a drug as defined by Health and Safety Code § 109925.

MM. Transport means the transfer of cannabis or cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting cannabis activity authorized by the MAUSCRA.

NN. Transporter means a person authorized to transport cannabis or cannabis products in amounts authorized by the state or by one of its departments or divisions under the MAUSCRA.

(Code 1985, § 5.32.020; Ord. No. 572, § 4(5.32.020), 6-14-2021)

A. Cannabis business permit required to engage in cannabis business.

1. No person may engage in any cannabis business or in any cannabis activity within the city, including cultivation, manufacture, processing, laboratory testing, transporting, dispensing, distribution, or sale of cannabis or a cannabis product unless the person:

a. Has a valid cannabis business permit from the city; and

b. Is currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis business and the cannabis business activities, including the duty to obtain any required state licenses.

2. Collectives and cooperatives that obtained city permits to conduct cannabis activities prior to the repeal of Health and Safety Code § 11362.775 (January 9, 2019) must obtain both a city issued cannabis business permit and a state license for that cannabis activity as provided in subsection A.1 of this section.

B. Cannabis business employee qualifications and training; employer obligations to monitor employee compliance.

1. The owner or operator of a cannabis business shall ensure that all employees comply with all the requirements of this chapter.

2. Cannabis business owners or operators shall ensure that employees are educated as to all the requirements of this chapter and applicable state law requirements for cannabis businesses and that they adhere to all applicable requirements.

3. Failure of the owner or operator to take reasonable steps to comply with these requirements shall be grounds for permit revocation.

(Code 1985, § 5.32.030; Ord. No. 572, § 4(5.32.030), 6-14-2021)

A. Initial maximum amount of cannabis dispensary permits. The city council may issue a maximum of up to two cannabis business permits to qualified storefront cannabis retailers at any one given time and up to two cannabis business permits to qualified non-storefront cannabis retailers. The permits shall be issued in accordance with the application and permit approval process contained in this chapter and resolutions adopted pursuant to the ordinance from which this chapter is derived. The cannabis dispensary must obtain a cannabis business permit from the city before commencing operations, must be in compliance with all applicable state and federal laws pertaining to its operation, including obtaining all necessary licenses from the state, and shall comply with all applicable operational and zoning requirements set forth in this Code. Nothing in this chapter creates a mandate that the city council must issue one or more cannabis business permit to a cannabis dispensary if the city council determines that there are no qualified applicants, the proposed locations for cannabis businesses are incompatible with neighboring land uses, or if the city council determines that the issuance of a cannabis dispensary would have a negative effect on the health, safety, or welfare of the citizens or businesses of the city, or for any other reason allowed by law.

B. City council review and increased maximum number of permits. Not less than 12 months after the first cannabis business permit for a dispensary is issued, the city administrator shall deliver a report to the city council during a regular meeting which examines the positive and negative impacts that the cannabis dispensary has had on the community during the preceding 12 months. The report shall include, among other things, an analysis of how the cannabis dispensary has complied with state and local regulations, any positive or negative community and law enforcement impacts, and any revenue generated. If after hearing the report the city council makes a determination that there are no significant consequences of allowing cannabis dispensaries to operate in the city, the city council at its sole discretion may vote to expand the number of authorized cannabis dispensary permits to be issued.

(Code 1985, § 5.32.040; Ord. No. 572, § 4(5.32.040), 6-14-2021)

A. Initial application procedure.

1. The city council shall adopt by resolution the procedures which will govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any cannabis business permits. The resolution shall authorize the city administrator or the administrator's designee to prepare the necessary forms, adopt any necessary rules, regulations and processes, solicit applications, conduct initial evaluations of the applicants, and to ultimately provide a final recommendation to the city council of the top three applicants for consideration.

2. At the time of filing, each applicant shall pay an application fee established by resolution of the city council, to cover all costs incurred by the city in the application process.

3. After the initial review, the city administrator or the administrator's designee will make a recommendation to the city council, and the city council shall make a final determination in accordance with the selection procedure set forth in the resolution adopted by the city council.

B. The city's reservation of rights. The city reserves the right to reject any or all applications. The city may also modify, postpone, or cancel any request for applications, or the entire program under this chapter, at any time without liability, obligation, or commitment to any party, firm, or organization. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this chapter, may be cancelled at any time prior to permit issuance. The city further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to any other failure to comply with the requirements in this chapter, an application may be rejected for any of the following reasons:

1. Proposal received after designated time and date.

2. Proposal not containing the required elements, exhibits, nor organized in the required format.

3. Proposal considered not fully responsive to this request for permit application.

4. Proposal contains excess or extraneous material not called for in the request for permit application.

C. Expiration of permits. A cannabis business permit issued pursuant to this chapter shall expire 12 months after the date of its issuance and may be renewed as provided in subsection E of this section.

D. Revocation. Cannabis business permits may be revoked for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this chapter.

E. Renewal applications.

1. An application for renewal of a cannabis business permit shall be filed at least 60 calendar days prior to the expiration date of the current permit.

2. The renewal application shall contain all the information required for new applications.

3. The applicant shall pay a fee in an amount to be set by the city council to cover the costs of processing the renewal permit application, together with any costs incurred by the city to administer the program created under this chapter.

4. An application for renewal of a cannabis business permit shall be rejected if any of the following exists:

a. The application is filed less than 60 days before its expiration.

b. The cannabis business permit is suspended or revoked at the time of the application.

c. The cannabis business has not been in regular and continuous operation in the four months prior to the renewal application.

d. The cannabis business has failed to conform to the requirements of this chapter, or of any regulations adopted pursuant to this chapter as existing at the time the original permit was issued, including separation of the location from sensitive uses.

e. The permittee fails or is unable to renew its state license.

f. If the city or state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of this chapter, or this Code as existing at the time the original permit was issued, including separation of the location from sensitive uses, or of the state rules and regulations, and the city or state has determined that the violation is grounds for termination or revocation of the cannabis business permit.

5. The city administrator or the administrator's designee is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the city administrator or the administrator's designee is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the city administrator or the administrator's designee shall be handled pursuant to section 5.32.060.

6. If a renewal application is rejected, a person may file a new application pursuant to this chapter no sooner than one year from the date of the rejection.

F. Effect of state license suspension, revocation, or termination. Suspension of a license issued by the state, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the city, until the state, or its respective department or division, reinstates or reissues the state license. Should the state or any of its departments or divisions revoke or terminate the license of a cannabis business, such revocation or termination shall also revoke or terminate the ability of a cannabis business to operate within the city.

(Code 1985, § 5.32.050; Ord. No. 572, § 4(5.32.050), 6-14-2021)

A. Appeals from decisions of the city administrator or designee under this chapter. Unless specifically provided elsewhere to the contrary, when an appeal is provided for in this chapter from a decision of the city administrator or the administrator's designee, the appeal shall be conducted as prescribed in this section.

B. Written request for appeal.

1. Within ten calendar days after the date of a decision of the city administrator or the administrator's designees to revoke, suspend or deny a permit, or to add conditions to a permit, or within ten calendar days after the planning director or planning commission has approved or denied an application for a cannabis business permit, an aggrieved party may appeal such action by filing a written appeal with the city administrator setting forth the reasons why the decision was not proper.

2. At the time of filing, the appellant shall pay the designated appeal fee, established by resolution of the city council from time to time.

C. Appeal hearing.

1. Upon receipt of the written appeal, the city administrator 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.

2. The appeal shall be held within a reasonable time after the 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.

3. 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.

4. 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 final.

(Code 1985, § 5.32.060; Ord. No. 572, § 4(5.32.060), 6-14-2021)

A. Selection and review of finalists.

1. The city council shall adopt by resolution a procedure by which the top three applicants applying for a cannabis business permit in the dispensary category will be presented to the city council for a final determination at a public meeting. Such procedures shall include, but not be limited to, the degree to which the applicant best satisfies the requirements of this chapter, the applicant's experience, the proffered business plan, the accuracy of information provided in the application, and the level of community service and employment opportunities for residents of the city. Applicants for other cannabis business categories, if any, will be presented to the planning commission for a final determination at a public meeting.

2. The top three finalists in the cannabis dispensary category shall be invited to attend the city council meeting, where they will be expected to make a public presentation introducing their team and providing an overview of their proposal. In order to provide adequate time, presentations may be divided over more than one meeting over multiple days as determined to be necessary. The applicants in the other categories of cannabis businesses, if any, shall be invited to attend a planning commission meeting, where they will be expected to make a public presentation introducing their team and providing an overview of their proposal. In order to provide adequate time, presentations may be divided over more than one meeting over multiple days as determined to be necessary.

3. At least ten days prior to the hearing, notice of the hearing shall be sent to all property owners located within 300 feet of the proposed business locations of each of the finalists to be considered by the city council or the planning commission.

4. The city council shall rank the final three candidates and shall select one or more candidates to be issued a cannabis permit for a cannabis dispensary as permitted by this chapter. The city council's decision as to the selection of the candidates to receive a cannabis dispensary permit shall be final. Decisions of the planning commission to issue or deny cannabis permits in the other business categories, if any, may be appealed to the city council according to the procedure set forth in this chapter.

5. Official issuance of a cannabis business permit, however, is conditioned upon the prevailing candidates obtaining all required land use approvals. Following the council or planning commission's selection, the prevailing candidates shall apply to the city's planning department to obtain any required land use approvals or entitlements for the permittee's location, if any. Land use approvals shall include compliance with all applicable provisions of the California Environmental Quality Act, Public Resources Code § 21000 et seq. The city administrator shall formally issue a cannabis business permit once the city administrator and police chief have both affirmed that all of the required land use approvals have been obtained.

6. If the selected permittees are unable to fulfill all the requirements of obtaining the cannabis business permits, the city council or the planning commission, in its sole discretion, may award the permit to the next highest ranked applicants, or may begin the application process again to allow for selection of a new set of applicants.

7. Issuance of a cannabis business permit does not create a land use entitlement. A cannabis business permit shall only be for a term of 12 months and shall expire at the end of the 12-month period unless it is renewed as provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a permit, unless all of the state and local laws and regulations, including, but not limited to, the requirements of this chapter and of the permit, have been complied with.

8. Notwithstanding anything in this chapter to the contrary, the city council and the planning commission reserve the right to reject any or all applications if it determines it would be in the best interest of the city, taking into account any health, safety and welfare impacts on the community. Applicants shall have no right to a cannabis business permit until a permit is actually issued, and then only for the duration of the permit's term. Each applicant assumes the risk that, at any time prior to the issuance of a permit, the city council may terminate or delay the program created under this chapter.

9. If an application is denied, a new application may not be filed for one year from the date of the denial.

10. A person or entity granted a cannabis business permit shall be required to pay any permit fee established by resolution of the city council to cover the costs of administering the cannabis business permit program created in this chapter.

B. Prohibition on transfer of cannabis business permits.

1. No person may transfer ownership or control of a cannabis business or transfer any cannabis business permit issued under this chapter. Cannabis business permits are not a property right, and permittees have no economic interest in any permit issued to them. Permittees have no guaranteed right to sell or transfer a cannabis business permit to another party, but the city council at its discretion may consider whether to authorize the transfer of a cannabis business permit to another party after the proposed transferee has applied for the permit in compliance with this Code. Any attempt to transfer ownership of a cannabis business or of a cannabis business permit shall render the cannabis business permit void.

2. In any situation where a permit has been lost as a result of an attempted transfer of the cannabis business permit or of the cannabis business, or as a result of the abandonment or revocation of the permit, any new permit shall be issued using the standard process for the issuance of permits in the first instance. No preference shall be given to any person proposed as new owner or assignee by the former permit holder. In such case, prior to accepting any new applications, the city shall post the availability of the cannabis business permit at issue on the city's website. The city administrator or the administrator's designee may take other actions to help ensure the broadest pool of applicants for the new permit.

(Code 1985, § 5.32.070; Ord. No. 572, § 4(5.32.070), 6-14-2021)

A. City business license. Prior to commencing operations, a cannabis business shall obtain a city business license.

B. Building permits and inspection. Prior to commencing operations, a cannabis business shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permits, fire department approvals, health department approvals and other zoning and land use permits and approvals.

C. Certification from planning director. Prior to commencing operations, a cannabis business must obtain a certification from the planning director certifying that the business is located on a site that meets all of the requirements of this Code, including chapter 17.79.

D. Right to occupy and to use property. As a condition precedent to the city's issuance of a cannabis business permit pursuant to this chapter, any person intending to open and to operate a cannabis business shall provide sufficient evidence of the legal right to occupy and to use the proposed location. In the event the proposed location will be leased from another person, the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this chapter and consents to the operation of the cannabis business on the owner's property.

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

1. They must execute 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 cannabis business permit, the city's decision to approve the operation of the cannabis business or activity, to the process used by the city in making its decision, or the alleged violation of any federal, state or local laws by the cannabis business or any of its officers, employees or agents.

2. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city attorney.

3. Reimburse the city for all costs and expenses, including, but not limited to, attorney fees and costs and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's cannabis business permit, or related to the city's approval of a cannabis activity. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.

(Code 1985, § 5.32.080; Ord. No. 572, § 4(5.32.080), 6-14-2021)

A. Compliance with laws. It is the responsibility of the owners and operators of the cannabis business to ensure that it is, at all times, 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 authorizing any actions which violate state law or local law with respect to the operation of a cannabis business. It is the responsibility of the owners and the operators of the cannabis business to ensure that the cannabis business is, at all times, operating in a manner compliant with all applicable state and local laws, the 2008 Attorney General Guidelines, any subsequently enacted state law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the cannabis business permit. Nothing in this chapter shall be construed as authorizing any actions which violate state law with regard to the operation of a cannabis business.

B. Fees, charges and taxes.

1. No person may commence or continue any cannabis activity in the city, without timely paying in full all fees, charges, and any applicable taxes required for the operation of a cannabis business. Fees and charges associated with the operation of a cannabis activity shall be established by resolution of the city council which may be amended from time to time.

2. A cannabis dispensary 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. Cannabis dispensaries shall cooperate with city with respect to any reasonable request to audit the cannabis dispensary'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.

C. Hours of operation. Cannabis dispensaries may be open for access to the public only between the hours of 8:00 a.m. and 8:00 p.m. Monday through Sunday. Other cannabis businesses may operate only during the hours specified in the business's cannabis business permit.

D. Restriction on consumption. Cannabis shall not be consumed on the premises of any cannabis business.

E. Outdoor storage. No outdoor storage of cannabis or cannabis products is permitted at any time.

F. Reporting and tracking of product and of gross sales. Each cannabis business shall have in place a point-of-sale tracking system to track and report on all aspects of the cannabis business, including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale). The cannabis business shall ensure that such information is compatible with the city's recordkeeping systems. The system must have the capability to produce historical transactional data for review by the city administrator or the administrator's designee.

G. Conformance with regulations. All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the state and local regulations.

H. Emergency contact. Each cannabis business shall provide the city administrator or the administrator's designees with the name, telephone number (mobile preferred, if available) of an owner and/or manager to whom emergency notice can be provided at any hour of the day.

I. Signage and notices.

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

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

3. Each entrance to a cannabis dispensary 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 cannabis dispensary is prohibited.

4. Cannabis dispensaries shall post signage providing health warnings about the dangers of cannabis consumption.

5. Cannabis dispensaries shall post signage prohibiting loitering on-site.

J. Minors.

1. Persons under the age of 21 years shall not be allowed on the premises of a cannabis business. Persons under the age of 21 years shall not be allowed to serve as a driver for a mobile delivery service. It is unlawful and a violation of this chapter for any person to employ any person at a cannabis business who is not at least 21 years of age.

2. The entrance to the cannabis business shall be clearly and legibly posted with a notice that no person under the age of 21 years is permitted to enter upon the premises of the cannabis business.

K. Odor control. Odor control devices and techniques shall be incorporated in all cannabis dispensaries to ensure that odors from cannabis are not detectable off-site. Cannabis dispensaries shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis dispensary 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 dispensary. As such, a cannabis dispensary must install and maintain the following equipment, or any other equipment which the city administrator or the administrator's designees determine is a more effective method or technology:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally. The dispensary applicant shall provide a statement from the exhaust air filtration manufacturer that the system has been designed to achieve the above standard based on the specific building size and layout;

2. An air system that creates negative air pressure between the cannabis dispensary's interior and exterior, so that the odors generated inside the cannabis dispensary are not detectable on the outside of the cannabis dispensary. The dispensary applicant shall provide a statement from the air system manufacturer that the system has been designed to achieve the above standard based on the specific building size and layout.

L. Display of permit and city business license. The original copy of the cannabis business permit issued by the city pursuant to this chapter and the city issued business license shall be posted inside the cannabis dispensary in a location readily visible to the public.

M. Background check.

1. Pursuant to Penal Code §§ 11105(b)(11) and 13300(b)(11), 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, or supervisor of the cannabis business must submit fingerprints and other information deemed necessary by the city administrator or the administrator's designees for a background check by the city police department. Pursuant to Penal Code §§ 11105(b)(11) and 13300(b)(11), 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 permit to operate a cannabis business unless they have first cleared the background check, as determined by the police chief, as required by this section.

2. A fee for the cost of the background investigation, which is 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 cannabis business permit is submitted. The applicants shall provide an initial deposit in an amount the city administrator or the administrator's designees estimates will cover the cost of the background investigation, which shall be used and drawn upon as a retainer to cover the actual costs of such investigation. If this amount is not sufficient, the applicant shall provide additional amounts that are necessary and if the applicant is unable to provide the additional amounts necessary to complete the investigation, the investigation shall cease and shall not continue until such additional amounts are paid. Upon completion of the investigation or in the event the applicant withdraws their application, any fees paid for this process will be deemed non-refundable.

3. The city shall not disseminate background check results information to any private party.

4. When reviewing background check results, the police chief shall verify that applicants have not been convicted of any crimes listed in Business and Professions Code § 26057. Applicants found to have committed any crimes listed in Business and Professions Code § 26057 shall fail the background and shall be ineligible for a city cannabis business permit.

N. Loitering. The owner and/or operator of a cannabis business shall prohibit loitering by persons outside the facility both on the premises and within 50 feet of the premises of the business.

O. Permits and other approvals. Prior to the establishment of any cannabis business or the operation of any such business, the person intending to establish a cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis business intends to establish and to operate.

(Code 1985, § 5.32.090; Ord. No. 572, § 4(5.32.090), 6-14-2021)

• Additional operating requirements for storefront cannabis retailers/dispensaries.

A. Records and recordkeeping.

1. Each owner and operator of a storefront cannabis dispensary shall maintain accurate books and records, detailing all of the revenues and expenses of the dispensary, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a cannabis business permit issued pursuant to this chapter), or at any time upon reasonable request of the city, each cannabis dispensary shall file a sworn statement detailing the number of sales by the cannabis dispensary during the previous 12-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid.

2. Each owner and operator of a storefront cannabis dispensary 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 dispensary, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the cannabis dispensary. The register required by this subsection shall be provided to the city administrator or the administrator's designees upon a reasonable request.

3. Each storefront cannabis dispensary shall confidentially maintain a record of all persons, collectives and primary caregivers served by the cannabis dispensary, for a period of no less than four years or as required by state law, whichever is the lesser period of time.

4. Storefront cannabis dispensaries shall maintain records of their inventory acquired, including the name and address of each supplier, the date of acquisition and the quantity acquired from each supplier, and the location of the cultivation of the supplier, and shall maintain a copy of the supplier's state license to cultivate (if required).

5. Subject to any restrictions under state or federal law, each storefront cannabis dispensary shall allow city officials to have access to the dispensary's books, records, accounts, together with any other data or documents relevant to its permitted cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than 24 hours after receipt of the city's request, unless otherwise stipulated by the city.

B. Security measures.

1. A permitted storefront cannabis dispensary shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent theft of cannabis or cannabis products at the cannabis dispensary. Except as may otherwise be determined by the city administrator or the administrator's designees, these security measures shall include, but not be limited to, all of the following:

a. Preventing individuals from remaining on the premises of the cannabis dispensary if they are not engaging in an activity directly related to the permitted operations of the cannabis dispensary.

b. Establishing limited access areas accessible only to authorized cannabis dispensary personnel.

c. 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 as to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes or for immediate sale at a dispensary.

d. 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 dispensary which are open and accessible to the public, and all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis. Video recordings shall be maintained for a minimum of 45 days and shall be made available to the city administrator or the administrator's designee upon request.

e. Sensors shall be installed to detect entry and exit from all secure areas.

f. Panic buttons shall be installed in all cannabis dispensaries.

g. Having a professionally installed, maintained, and monitored alarm system.

h. Any bars installed on the windows or the doors of the cannabis dispensary shall be installed only on the interior of the building.

i. Security personnel must be licensed by the state bureau of security and investigative services personnel and shall be subject to the prior review and approval of the city administrator or the administrator's designees, with such approval not to be unreasonably withheld.

j. Each cannabis dispensary shall have the capability to remain secure and operational during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

k. Entrances into the dispensary shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the dispensary, to separate it from the reception/lobby area.

l. For the first 12 months of operation, uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Following the first 12 months of operation, the owner/operator may request a waiver from the police chief for further compliance with this requirement based on the demonstrated record of minimal or no complaints or calls for service to the cannabis dispensary.

2. A storefront cannabis dispensary shall identify a designated security representative/liaison to the city or their designee regarding any security related measures or and operational issues who shall be reasonably available to meet with the city.

3. As part of the application and permitting process a storefront cannabis dispensary shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency.

4. The storefront cannabis dispensary shall cooperate with the city when the city administrator or the administrator's designee makes a request, upon reasonable notice to the cannabis dispensary, to inspect or audit the effectiveness of any security plan or of any other requirement of this chapter.

5. A storefront cannabis dispensary shall notify the city administrator or the administrator's designees within 24 hours after discovering any of the following:

a. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city administrator or the administrator's designee.

b. Diversion, theft, loss, or any criminal activity involving the cannabis dispensary or any agent or employee of the cannabis dispensary.

c. The loss or unauthorized alteration of records related to cannabis, records of sales, or employees or agents of the cannabis dispensary.

d. Any other breach of security.

C. Restriction on alcohol sales. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the storefront cannabis dispensary.

D. Age verification. Owners and operators are required to verify the age and the necessary documentation of each customer to ensure the customer is not under the age of 21 years prior to allowing customers to enter the storefront cannabis dispensary.

E. Quantity restrictions. Storefront cannabis dispensaries may have on-site, in the retail sales area of the dispensary, only that quantity of cannabis and cannabis products reasonably anticipated to meet the daily demand readily available for sale. Dispensaries may also sell non-cannabis products, such as cannabis and health related educational books and publications, apparel, and the like. However, sales of non-cannabis products shall constitute no more than 15 percent of the floor area and not to exceed 300 square feet.

G. Restrooms. All restroom facilities shall remain locked and under the control of management.

H. Childproof packaging. All cannabis and products containing cannabis shall be dispensed in childproof packaging and shall remain in such packaging until off the premises, unless otherwise provided by state law.

(Code 1985, § 5.32.100; Ord. No. 572, § 4(5.32.100), 6-14-2021)

• Additional operating requirements for non-storefront cannabis retailers/dispensaries.

A. Employee deliveries.

1. All deliveries of cannabis and cannabis products shall be performed by a delivery employee that is directly employed by the licensed non-storefront retailer.

2. Each delivery employee of licensed retailer shall be at least 21 years of age.

3. All deliveries of cannabis and cannabis products shall be made in person. A delivery of cannabis or cannabis products shall not be made through the use of an unmanned vehicle.

4. The process of delivery begins when the delivery employee leaves the retailer's licensed premises with the cannabis or cannabis products for delivery. The process of delivering ends when the delivery employee returns to the retailer's licensed premises after delivering the cannabis or cannabis products to the customers. During the process of delivery, the retailer's delivery employee may not engage in any activities except for cannabis or cannabis product delivery and necessary rest, fuel, or vehicle repair stops.

5. A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the retailer's current license, the employee's city issued work permit, and an identification badge provided by the employer pursuant to the bureau of cannabis control regulations.

6. Prior to providing cannabis or cannabis products to a delivery customer, a delivery employee shall confirm the identity and age of the delivery customer as required by the bureau of cannabis control and place the cannabis or cannabis products in a resealable child-resistant opaque exit package.

7. A licensed retailer shall maintain an accurate list of the retailer's delivery employees and shall provide the list to the city upon request.

B. Delivery to a physical address.

1. A delivery employee may only deliver cannabis or cannabis products to a physical address in the state.

2. A delivery employee shall not leave the state while possessing cannabis or cannabis products.

3. A delivery employee shall not deliver cannabis or cannabis products to an address located on publicly owned land or any address on land or in a building leased by a public agency. This prohibition applies to land held in trust by the United States for a tribe or an individual tribal member unless the delivery is authorized by and consistent with applicable tribal law.

4. A delivery employee may deliver to any jurisdiction within the state.

C. Delivery vehicle requirements.

1. A retailer's delivery employee, carrying cannabis or cannabis products for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis or cannabis products shall be operated by a delivery employee of the licensee. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle.

2. While carrying cannabis or cannabis products for delivery, a retailer's delivery employee shall ensure the cannabis and cannabis products are not visible to the public. Cannabis and cannabis products shall be locked in a box, container, or cage that is secured on the inside of the vehicle. The inside of the vehicle includes the trunk.

3. A retailer's delivery employee shall not leave cannabis or cannabis products in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active alarm system.

4. Upon request, the licensed retailer shall provide the city with information regarding any motor vehicle used for the delivery of cannabis and cannabis products, including the vehicle's make, model, color, vehicle identification number, license plate number and department of motor vehicles registration information.

5. Any motor vehicle used by a licensed retailer to deliver cannabis or cannabis products is subject to inspection by the city. Vehicles used to deliver cannabis or cannabis products may be stopped and inspected by the city at any licensed premises or during delivery.

6. No display of any logo, signage, or other information that identifies, advertises, or lists the services or products offered shall be placed on the vehicle.

D. Cannabis and cannabis products carried during delivery.

1. A retailer's delivery employee shall not carry cannabis or cannabis products in the delivery vehicle in excess of $10,000.00 at any time.

2. A delivery employee may only carry cannabis or cannabis products in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. The vehicle shall not carry more cannabis or cannabis products than allowed by state and local law and required to fulfill all immediate delivery requests.

3. A retailer's delivery employee shall not leave the licensed premises with cannabis or cannabis products without at least one delivery order that has already been received and processed by the licensed retailer.

4. A delivery inventory ledger of all cannabis and cannabis products must be provided to the retailer's delivery driver before leaving the premises.

5. After each customer delivery, the delivery inventory ledger must be updated to reflect the current inventory in possession of the retailer's delivery driver.

6. The retailer's delivery driver shall maintain a log that includes all stops from the time the retailer's delivery driver leaves the licensed premises to the time that the retailer's delivery driver returns to the licensed premises, and the reason for each stop. The log shall be turned in to the retailer when the retailer's delivery driver returns to the licensed premises. The licensed retailer must maintain the log as a commercial cannabis activity record as required by the state.

7. Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the retailer's delivery driver electronically or in hard copy. The delivery request provided to the retailer's delivery driver shall contain all of the information required by the bureau of cannabis control except for the date and time the delivery was made, and the signature of the customer.

8. Immediately upon request by the bureau of cannabis control or any law enforcement officer, the retailer's delivery driver shall provide:

a. All delivery inventory ledgers from the time the retailer's delivery driver left the licensed premises up to the time of the request;

b. All delivery request receipts for cannabis and cannabis products carried by the driver, in the delivery vehicle, or any deliveries that have already been made to customers; and

c. The log of all stops from the time the retailer's delivery driver left the licensed premises up to the time of the request.

9. If a retailer's delivery driver does not have any delivery requests to be performed for a 30-minute period, the retailer's delivery driver shall not make any additional deliveries and shall return to the licensed premises. Required meal breaks shall not count towards the 30-minute period.

10. Upon returning to the licensed premises, all undelivered cannabis and cannabis products shall be returned to inventory.

E. Delivery request receipt. A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of cannabis or cannabis products.

1. The delivery request receipt shall contain the following:

a. The name and address of the licensed retailer.

b. The first name and employee number of the retailer's delivery employee who delivered the order.

c. The first name and employee number of the retailer's employee who prepared the order for delivery.

d. The first name of the customer and retailer assigned customer number for the person who requested the delivery.

e. The date and time the delivery request was made.

f. The delivery address.

g. A detailed description of all cannabis and cannabis products requested for delivery as required by the bureau of cannabis control.

h. The total amount paid for the delivery as required by the bureau of cannabis control.

i. Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery.

2. At the time of delivery, the delivery employee of the retailer shall provide the customer who placed the order with a hard or electronic copy of the delivery request receipt. The delivery driver shall retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer's records.

3. For the purpose of this section, an employee number is a distinct number assigned by a licensed retailer to their employees that would allow the licensed retailer to identify the employee on documents or records using the employee number rather than the employee's full name. A licensed retailer shall be able to identify the employee associated with each employee number upon request by the state/city.

4. For the purpose of this section, a customer number is a distinct number assigned by a licensed retailer to a customer that would allow the licensed retailer to identify the customer in documents or records using the customer number rather than the customer's full name. A licensed retailer shall be able to identify the customer associated with each customer number upon request by the state/city.

F. Delivery route. While making deliveries of cannabis or cannabis products, a retailer's delivery driver shall only travel from the retailer's licensed premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the retailer's licensed premises. A delivery driver of a retailer shall not deviate from the delivery path except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of routes unsafe, impossible, or impracticable.

G. Receiving shipments of inventory.

1. A licensed retailer shall receive a shipment of cannabis and cannabis products only from a licensed distributor or licensed microbusiness.

2. A licensed retailer shall accept shipments of cannabis and cannabis products only between the hours of 6:00 a.m. and 10:00 p.m.

3. During business hours, shipments of cannabis and cannabis products shall not enter the licensed premises through an entrance or exit that is available for use by the public.

H. Inventory documentation. The licensed retailer shall maintain an accurate record of its inventory. The licensed retailer shall provide the bureau of cannabis control/city with the record of inventory immediately upon request. The licensed retailer shall keep a record of the following information for all cannabis and cannabis products the licensed retailer has in its inventory:

1. A description of each item such that cannabis or cannabis products can easily be identified.

2. An accurate measurement of the quality of the item.

3. The date and time the cannabis or cannabis products was received by the licensed retailer.

4. The sell by or expiration date provided on the package of cannabis or cannabis products, if any.

5. The name and license number of the licensed distributor or licensed microbusiness that transported the cannabis or cannabis products to the licensed retailer.

6. The price the licensed retailer paid for the cannabis or cannabis products, including taxes, delivery costs, and any other costs.

I. Inventory reconciliation. The licensed retailer shall perform reconciliation of its inventory in the time and manner required by 16 CCR 5424.

J. Record of sales.

1. A licensed retailer shall maintain an accurate record of sales made to a customer.

2. A record of cannabis and cannabis products sold to a customer shall contain the following information:

a. The first name and employee number of the retailer employee who processed the sale.

b. The first name and the retailer assigned customer number for the customer who made the purchase.

c. The date and time of the transaction.

d. A list of all the cannabis and cannabis products purchased, including the quantity purchased.

e. The total amount paid for the sale including the individual prices paid for each amount of cannabis or cannabis products purchased and any amounts paid for taxes.

3. The point of sales for all sale transactions performed by the licensed retailer shall be credited to the city.

K. Records. All licensed retailer specific records shall be maintained in accordance with the requirements of 16 CCR 5037.

L. Retailer premises to retailer premises transfer.

1. A licensee who holds multiple retail licenses may arrange for the transfer of cannabis and cannabis products from one licensed retail premises to another licensed retail premises if both retail licenses are held under the same ownership.

2. Cannabis and cannabis products transferred to a licensed retail premises may be sold by the licensed retailer receiving the cannabis or cannabis products if the receiving retailer is in compliance with all requirements of the bureau of cannabis control.

3. The transportation of cannabis and cannabis products under this subsection must comply with all requirements of the bureau of cannabis control.

4. Any movement of cannabis or cannabis products under this section shall be properly entered into the state track and trace system.

(Code 1985, § 5.32.110; Ord. No. 572, § 4(5.32.110), 6-14-2021)

A. Promulgation of regulations and standards.

1. In addition to any regulations adopted by the city council, the city administrator or the administrator's designee is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of cannabis business permits, the ongoing operation of a cannabis business and the city's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

2. Regulations shall be published on the city's website.

3. Regulations promulgated by the city administrator shall become effective upon date of publication. A cannabis business 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 city administrator or the administrator's designee, within a reasonable time.

B. Community relations requirements for cannabis dispensaries.

1. Each cannabis dispensary shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis dispensary can be provided. Each cannabis dispensary shall also provide the above information to all businesses and residences located within 100 feet of the cannabis dispensary property and shall provide opportunity for those businesses and residents within 100 feet to visit and to tour the cannabis dispensary at least once on a mutually convenient date and time. Any additional request shall be at the sole discretion of the dispensary operator.

2. During the first year of operation pursuant to this chapter, the owner, manager, and community relations representative from the cannabis dispensary holding a permit issued pursuant to this chapter shall attend a quarterly meeting with the city administrator or the administrator's designees 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, manager, and community relations representative from the cannabis dispensary shall meet with the city administrator or the administrator's designees when and as requested by the city administrator or the administrator's designees.

3. The cannabis dispensary to which a permit is issued pursuant to this chapter shall contribute resources to health organizations and educational institutions to develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth abuse of cannabis, and that identifies resources available to youth related to drugs and drug addiction. The amount of resources to be contributed shall be negotiated between the parties and shall become a term of the development agreement required by section 17.79.090.

C. Fees deemed debt to city. 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 an authorized administrative process as set forth in this Code, or in any court of competent jurisdiction.

D. Permit holder responsible for violations. The person or members of a business entity to whom a permit is issued pursuant to this chapter shall be responsible for all violations of state law or rules or of the regulations and/or the ordinances of the city, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the cannabis business.

E. Inspection and enforcement.

1. The city administrator or the administrator's designees are charged with enforcing the provisions of this Code, or any provision thereof, may enter the location of a cannabis business at any time during the hours of operation without notice, and inspect the location of any cannabis business as well as any recordings and records required to be maintained pursuant to this chapter or under applicable provisions of state law.

2. It is unlawful for any person having responsibility over the operation of a cannabis business, 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 business 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 business under this chapter or under state or local law.

3. The city administrator or the administrator's designees charged with enforcing the provisions of this chapter may enter the location of a cannabis business at any time during the hours of operation 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 city police department standards for evidence.

F. Concurrent regulation with state. It is the stated intent of this chapter to regulate cannabis activity in the city concurrently with the state.

(Code 1985, § 5.32.120; Ord. No. 572, § 4(5.32.120), 6-14-2021)

A. Violations declared a public nuisance. Each and every violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance.

B. Each violation a separate offense. Each and every violation of this chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by this Code. Additionally, as a nuisance per se, any violation of this chapter shall be subject to injunctive relief, any permit issued pursuant to this chapter being deemed null and void, disgorgement and payment to the city of any moneys unlawfully obtained, costs of abatement, costs of investigation, attorney 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 business or persons related to, or associated with, the cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the city administrator, the administrator's designee, or the police chief, may take immediate action to temporarily suspend a cannabis business permit issued by the city, pending a hearing before the city council.

C. Remedies cumulative and not exclusive. 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.

(Code 1985, § 5.32.130; Ord. No. 572, § 4(5.32.130), 6-14-2021)