Clearlake Municipal Code § 5-20 Marijuana Dispensary Regulations

Prior legislation: Ords. #2011-150, 2012-153, 196-2017, 201-2017. Editor’s Note: Section 2 of Ordinance No. 201-2017 provided that the City of Clearlake Police Chief or designees are hereby authorized to access state and federal level summary criminal history information for employment (including volunteers and contract employees), licensing of managers, supervisors, or owners, or certification for commercial marijuana dispensaries purposes and may not disseminate the information to a private entity.

For the purpose of this section, the following words and phrases shall mean: APPLICANT means a person who is required to file an application for a Marijuana Business License under this section, including an individual owner, managing partner, officer of a corporation, or any other operator, manager, employee, or agent of a Marijuana Dispensary, as defined herein. AUMA shall mean the Adult Use of Marijuana Act, also known as Proposition 64. BUD TENDING ROOM shall mean the area of the dispensary where the cannabis is provided for sale. CITY means the City of Clearlake. DELIVERY means the use by a licensed or permitted dispensary of any technology platform owned or accessed via software license that enables the consumer to arrange for or facilitate the transfer of marijuana by a dispensary of marijuana or marijuana products. DELIVERY ONLY DISPENSARY means a non-storefront location that provides consumer related products only via delivery and is primarily found within the City’s CB combining zone district which sells marijuana and related products with a valid license from the City of Clearlake and, when applicable, from the State of California. DRUG PARAPHERNALIA shall have the same definition as found in the Health and Safety Code Section 11364.5, and as may be amended. LICENSEE means the person to whom a City Marijuana Dispensary or Delivery Only Dispensary License is issued under this section. MARIJUANA DISPENSARY or DISPENSARY means any storefront location that provides consumer related products primarily found within the City’s C-2 and C2-DD, and C4 zone districts which sells marijuana and related products with a valid license from the City of Clearlake and, when applicable, from the State of California. MAUCRSA means the state Medicinal and Adult Use of Cannabis Regulation and Safety Act, as may be amended. A MEDICAL MARIJUANA COLLECTIVE or COOPERATIVE means an organization that facilitates the collaborative efforts of medical marijuana patients and caregiver members for use and cultivation of medical marijuana as authorized by law – including the allocation of costs and revenues and is in compliance with Health and Safety Code section 11362.775 and applicable state regulations. MEMBER shall mean a person who is registered with the dispensary. POLICE CHIEF – shall mean the Chief of Police of the City of Clearlake or his/her designee. YOUTH-ORIENTED FACILITY shall mean a public or private school (K-12), licensed daycare facilities, public parks, or a “youth center” as defined by state law as any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. (Ord. #201-2017) 5-20.2 Marijuana Dispensary License Required to Operate; Deliveries Authorized by Licensed Dispensaries. a. It shall be unlawful for any person to engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the City the operation of a dispensary or delivery only dispensary unless the person first obtains and continues to maintain a valid Marijuana Dispensary License from the City as required by this section. b. City shall give marijuana dispensary licensing priority to applicants who have owned or operated a cooperative or collective in compliance with the requirements of Health and Safety Code section 11362.775 and the requirements of Section 5-20 of the Clearlake Municipal Code. c. Licensed marijuana dispensaries are permitted to make deliveries within the City of Clearlake and in other jurisdictions that do not prohibit deliveries to be made within their jurisdictions. 1. Delivery vehicles will be unmarked; must be equipped with a secure lockbox; driver must carry documentation showing what product is being delivered; and quantities delivered must be limited to that allowed by state law. d. Licensed Delivery Only Dispensaries are not permitted to sell marijuana to consumers from their location. They may only make sales of marijuana in conjunction with the delivery of marijuana to a consumer. (Ord. #201-2017)

The City may not grant more than three (3) licenses for marijuana dispensaries at any given time. The City does not limit the number of licenses for delivery only dispensaries as long as the location of the licenses is within an area allowed for in the Commercial Cannabis Combining District map. The number of licenses granted for marijuana dispensaries shall not affect the number of licenses granted for delivery only dispensaries. The City reserves the right to amend this section at any time to increase or decrease the number of marijuana dispensary licenses it shall issue at any time. (Ord. #201-2017; Ord. #246-2020, S2)

a. Dispensary Licensees that were established as marijuana cooperatives or collectives under Health and Safety Code section 11362.775 prior to the enactment of this section, may operate within the Commercial C2 or C2DD zoning districts. However, any relocation or expansion of an existing use shall require the issuance of a use permit as specified in paragraph b. below, and subject to all of the requirements of this chapter. b. Any other dispensary licensee may be located within the Commercial C2 zoning district or in the C2DD zoning district only upon issuance of a use permit which may be revocable, conditional or valid for a term period and may be issued by the Planning Commission for any of the uses or purposes for which such permits are required or permitted by this Chapter. c. A delivery only dispensary licensee may be located within the CB combining district only upon issuance of a use permit which may be revocable, conditional or valid for a term period and may be issued by the Planning Commission for any of the uses or purposes for which such permits are required or permitted by this Chapter. d. No dispensary or delivery only dispensary use permit shall be issued until either the City Council approves a Development Agreement for the site, a license agreement for the site, or until after the effective date of an approved ballot measure authorizing the taxation of commercial cannabis businesses in the City. e. The public hearing procedures, issuance, appeal, revocation, and enforcement of a use permit required by this Chapter shall be the same as set forth in Chapter XVIII the City of Clearlake Zoning Code. f. A dispensary (not applicable to delivery only dispensary) must be clearly visible from public rights-of-way and located on a premises that provides unobstructed views of the dispensary entrance. g. A dispensary and a delivery only dispensary shall not be located within six hundred (600') feet of a youth- oriented facility, licensed day care facility, or post-secondary educational institution. This setback shall be measured in a straight line from the boundary line of the property on which the dispensary or delivery only dispensary is located nearest to the boundary of the property on which the building or structure, or portion of the building or structure, in which the above listed use occurs or is located. The City Council may waive all or part of this requirement if it determines that the proximity does not constitute a risk to public health or safety as it relates to anything other than a K-12 public or private school or a youth center. (Ord. #201-2017)

a. Applicants entitled to priority licensing under Section 5-20.2b. may apply for a Marijuana Dispensary License or Delivery Only Dispensary License any time after the effective date of this section. b. If any of the priority licensees fail to apply to the City for a marijuana dispensary permit by August 1, 2017, or if any of the priority licensees are unable to obtain necessary state licenses to operate a marijuana dispensary by January 1, 2019, then the application period for one or more Marijuana Dispensary Licenses or Delivery Only Dispensary Licenses shall then be opened to any qualified applicant. (Ord. #201-2017)

a. Applications for Marijuana Dispensary Licenses and Delivery Only Dispensary Licenses shall be obtained from City Hall, and completed applications shall be submitted to the City Manager’s Office by the filing deadline given. An application is complete if it includes all fees, information and materials required by this section. It is the responsibility of the applicant to provide information required for approval of the application. The application shall be signed under penalty of perjury. b. An application may only be filed by the owner of the subject property, the lessee of the property where the lease authorizes the lessee to use the premises for a dispensary, or a person with the written authorization of the property owner. c. The application shall be deemed filed on the date when the City receives the last submission of information or materials required for it to be deemed complete in accordance with requirements specified herein. d. The City shall notify an applicant in writing, via Certified U.S. Mail, postage pre-paid, sent to the address provided by the applicant on the application, if an application is incomplete. The applicant shall be granted an extension of time to submit all materials required to complete the application within ten (10) days of the date of the notification. If the application remains incomplete in excess of said ten (10) day period, the application shall be deemed withdrawn and a new application shall be required. The time period for granting or denying a license shall be stayed during the extension of time. e. The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement to obtain a Marijuana Dispensary License or Delivery Only Dispensary License pursuant to this section. f. Any dispensary or delivery only dispensary license application shall include the following information: 1. The applicant’s full name (including any current or prior aliases, or other legal names the applicant is or has been known by, including maiden names), current address, and telephone number. 2. The address where notice of action on the application is to be mailed. 3. The applicant’s previous addresses for the two (2) years immediately prior to his or her present address.

Written proof that the applicant is over the age of 21 years of age. 5. The applicant’s height, weight, color of eyes and hair. 6. Two (2) passport-quality, current photographs of the applicant. 7. A birth certificate, passport, or valid California Driver’s License (not to include an AB60, federally restricted license). 8. The applicant’s business license and a copy of the applicant’s seller’s permit (retail sales tax permit) issued by the State Board of Equalization. 9. All the name or names and addresses of the person or persons who will act as a manager or supervisor of the dispensary or delivery only dispensary. 10. Pursuant to California Penal Code Sections 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 marijuana business must submit fingerprints and other information deemed necessary by the City Manager or his/her designee(s) for a background check by the Clearlake Police Department. Pursuant to California Penal Code Sections 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 marijuana business or a related work permit unless they have first cleared the background check, as determined by the Chief of Police, as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a marijuana business permit is submitted. 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. 11. A written statement listing the physical size of the dispensary or delivery only dispensary, the number of managers, supervisors, employees and volunteers who will work there, and describing the nature of the proposed use of the dispensary or delivery only dispensary. 12. A security plan describing security arrangements that will ensure the safety of persons visiting and working at the dispensary or delivery only dispensary, and protect the premises from theft. The plan shall provide for: installation of security cameras; installation of a burglar alarm system monitored by a State- licensed monitoring service; and a periodic (no less than yearly) written security assessment of the site conducted by a qualified professional.

13. A sketch or diagram depicting the interior configuration of the premises, including the total floor area occupied by the dispensary or delivery only dispensary. The sketch or diagram must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six (6") inches.
14. A sketch or diagram showing exterior configuration of the premises, including the outline of all structures, parking and landscape areas, and property boundaries. The sketch or diagram must be drawn to a designated scale or drawn with marked dimensions to an accuracy of plus or minus six (6") inches.
15. A straight-line drawing accurately depicting the building (or portion thereof) and premises to be occupied by the dispensary, and all properties within six hundred (600') feet of the boundaries of the property on which the dispensary or delivery only dispensary license is requested. The drawing shall indicate the property lines of any youth-oriented facility and all residential zones or uses within one hundred (100') feet of the primary entrance of the dispensary.
16. A lighting plan showing existing and proposed exterior and interior lighting placement and levels to provide adequate security lighting and which comply with all City standards regarding lighting design and installation.
17. Written authorization for the City, its agents and employees to seek verification of the information contained in the application and/or required pursuant to this Chapter.
18. A notarized statement by the property owner certifying under penalty of perjury that he or she has given consent to the applicant to operate a dispensary or delivery only dispensary at the location, or providing proof that the applicant owns the property.
19. A written statement by the applicant certifying under penalty of perjury that all the information contained in the application is true and correct. g. In addition to providing all the materials required for new applications, applications for annual renewal shall also be accompanied by the following information:

The licensee shall provide a detailed description of any changes proposed or that have occurred in dispensary or delivery only dispensary operations, the reasons for such changes, including compliance with applicable local and State law. 2. The licensee shall identify any problems encountered during operations and how they have been addressed. 3. If the licensee operates or has operated a cooperative or collective under Health and Safety Code section 11362.775 within the City, the licensee shall describe how the cooperative or collective operations complied with the requirements of this section and with applicable local and State law. h. In addition to the requirements set forth in paragraph f., an application for a Delivery Only Dispensary shall also include the following information:

The make, model, year, photograph and registration information for all vehicles used to make deliveries. Photographs must illustrate that a vehicle used for deliveries is equipped with a secure lockbox, as described in Section 5-20.2c.1. 2. Standard operating procedures to ensure that marijuana is delivered in accordance with state law, including, but not limited to, procedures for verifying the identity of the person submitting and receiving a delivery both before an order is taken and at the time of the delivery. 3. Standard operating procedures to ensure the licensee maintains a delivery log of the following documents and information relating to each delivery: (a) A delivery request that includes the date of the request, the full name of the party requesting the delivery, a specific description of the items requested and the address to which the items are to be delivered. (b) The name of the person that made the delivery. (c) the date and time of the delivery. 4. A valid California Driver’s License for all delivery personnel. (Ord. #201-2017)

a. After an applicant files a complete dispensary or delivery only dispensary license application and pays all required fees, the Police Chief shall conduct a background check pursuant to California Penal Code Sections 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 marijuana business must submit fingerprints and other information deemed necessary by the City Manager or his/her designee(s) for a background check by the Clearlake Police Department. Pursuant to California Penal Code Sections 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 marijuana business or a related work permit unless they have first cleared the background check, as determined by the Chief of Police, as required by this section. After completing the background check, the Police Chief shall take action as follows: 1. The Police Chief shall refer the application to any other City departments as necessary to complete his or her review of the application. 2. The Police Chief shall review the results of the background check and if any owner or operator has been convicted of any crime listed in California Business and Professions Code Section 19323 the applicant shall fail the background check and shall be ineligible to receive a permit. The City shall not disclose the results of the background check to any private party.

The application, or competing applications, if applicable, shall also be subject to a preliminary review conducted by the Police Chief and the City Manager. The Police Chief and City Manager shall make such recommendations to the Planning Commission as they deem appropriate based on their review. 4. A site visit within thirty (30) days of application. 5. Fire Marshall review and approval required. b. Within sixty (60) days after completion of the Police Chief’s investigation, the application shall be scheduled for a hearing before the Planning Commission where the Planning Commission may either grant or deny the application in accordance with the provisions of this section. (Ord. #201-2017)

The Planning Commission shall consider the application for the issuance or renewal of a dispensary license at a duly noticed hearing, as set forth in the Municipal Code. (Ord. #201-2017)

The Planning Commission shall consider the following criteria in determining whether to grant or deny an application to issue or renew a dispensary license: a. The dispensary or delivery only dispensary will operate or, if a renewal application, currently operates, in conformity with the all applicable state laws, and the provisions of this Chapter and the City Code. b. The dispensary or delivery only dispensary location does not have significant crime issues (e.g., based upon crime reporting district/statistics as maintained by the Police Department). c. There have not been excessive numbers of calls for police service, crimes or arrests in the area or to an existing dispensary or delivery only dispensary location (or to a dispensary or delivery only dispensary located in another jurisdiction with which the applicant is affiliated in any way). d. The applicant, and all managers, supervisors, employees and volunteers are at least 21 years of age. e. All required application materials have been provided and/or the dispensary or delivery only dispensary has operated successfully in a manner that shows it will comply with the operating requirements and standards specified in this section. f. That all required application or annual renewal fees have been paid and reporting requirements have been satisfied in a timely manner. g. The physical size of the dispensary or delivery only dispensary conforms with the requirements of this section and the dispensary or delivery only dispensary will be, or if a renewal application, currently is, one of three or fewer total licensed dispensaries or one of the two or fewer total licensed delivery only dispensaries operating within the City. h. The location is not prohibited by the provisions of this section or any applicable local or State law, statute, rule or regulation. i. The site plan, floor plan, and security plan have incorporated features necessary to assist in reducing potential crime-related problems and as specified in the operating requirements of this section. These features may include, but are not limited to, security on site; procedure for allowing entry; openness to surveillance and control of the premises, the perimeter, and surrounding properties; reduction of opportunities for congregating and obstructing public ways and neighboring property; illumination of exterior areas; and limiting furnishing and features that encourage loitering and nuisance behavior. j. No dispensary or delivery only dispensary applicant, owner, licensee, agent, manager, or supervisors, who will work, or, if renewal, currently works at the dispensary or delivery only dispensary, has violated any provision of this section such that grounds exist to suspend or revoke a dispensary or delivery only dispensary license. k. The dispensary or delivery only dispensary has incorporated all reasonable measures into the operating plan and consistently taken steps to successfully control the establishment’s patrons’ conduct resulting in disturbances, vandalism, uncontrolled crowds in or outside the dispensary, traffic control problems, or creation of a public or private nuisance, or interference of the operation of another business. l. That the dispensary or delivery only dispensary has not caused or been the site of nuisance activities including disturbances of the peace, illegal drug activity, ingesting marijuana in public in violation of state law, harassment of passerby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct, or police detentions or arrests. m. No provision of the Municipal Code or condition imposed by a City issued license, or any provision of any other applicable local or State regulation, order, or any condition imposed by permit issues in compliance with those laws has been violated. n. The applicant has not violated any applicable local or State law, statute, rule or regulation respecting the distribution, possession, or consumption of marijuana. o. The applicant has neither knowingly made a false statement of material fact, nor knowingly omitted a material fact from the dispensary license application. p. An applicant who has been convicted of a felony within the past ten (10) years may not be actively engaged in the operation or financing of any dispensary or delivery only dispensary. q. The applicant has not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. (Ord. #201-2017)

a. Following a hearing, the Planning Commission may approve or disapprove an application to issue or renew a dispensary or delivery only dispensary license. In issuing or renewing a dispensary or delivery only dispensary license, the Planning Commission may impose conditions, restrictions or require revisions on the applicant’s operating plan to ensure compliance with the provisions, purpose and intent of this section. The Planning Commission shall record the decision and the findings upon which the decision is based. The Planning Commission shall cause a written notice of its decision to issue or deny a license to be mailed to the applicant. b. Selection of the first three, dispensary licenses, and the first two delivery only dispensary licenses shall be on a first in time, first in right based on the application date. After all licenses are issued, and if there are more applicants for Marijuana Dispensary Licenses or Delivery Only Dispensary Licenses than the number of licenses available for each license type, the City will randomly select from the pool of applicants on an annual fiscal year basis to create a waiting list. Potential applicants will be required to pay the non-refundable application fee in advance and only approved applicants will be eligible for the random selection. (Ord. #201-2017)

If the Planning Commission denies an application or revokes a dispensary or delivery only dispensary license as provided in this section, no new application for a license shall be accepted from the applicant whose license has been revoked or application denied and no such license shall be issued to such person or to any company, entity or corporation in which s/he shall have any interest for a period of five (5) years after the action denying or revoking the license. (Ord. #201-2017)

The decision of the Planning Commission may be appealed to the City Council. The decision of the City Council to approve, deny, or revoke a license as provided for in this section shall be final and conclusive and there shall be no right of appeal. (Ord. #201-2017)

Dispensary or delivery only dispensary operations shall be established and managed only in compliance with the following standards: a. Criminal History. Applicants’ criminal histories will be reviewed against the parameters set forth in California Business and Professions Code Section 26057. b. Minors.

It shall be unlawful for any licensee, supervisor, or manager of any dispensary, to employ any person who is not at least 21 years of age. 2. Persons under the age of 18 shall not be allowed on the premises without a legal guardian over the age of 21 present. Persons age 18 to 21 shall be allowed on premises with a medical marijuana recommendation. Persons under the age of 21 shall not be allowed on the premises for recreational use. 3. Delivery requests made by persons under the age of 18 shall not be fulfilled. Persons age 18-21 shall have delivery requests fulfilled with a medical marijuana recommendation. Persons under the age of 21 shall not have delivery requests fulfilled for recreational use. c. Operating Hours. The maximum dispensary days and hours of operations shall be as follows: Monday through Sunday: 8:00 a.m. - 10:00 p.m. d. Dispensary or Delivery Only Dispensary Size and Access. 1. The dispensary or delivery only dispensary shall not exceed three thousand (3,000) square feet. Dispensary or delivery only dispensary size shall be limited, as deemed appropriate and necessary, to best serve customer needs within the intent of this section and reduce potential adverse impacts that might otherwise occur on surrounding neighborhoods, businesses and demands on City services. 2. All cannabis products must be located behind a locked door. For Marijuana Dispensaries, the entrance into the “bud tending” room shall be locked at all times with entry strictly controlled; e.g., a “buzz-in” electronic/mechanical entry system. A viewer shall be installed in the door that allows a wide-angle of view of the exterior entrance. Entrances to Delivery Only Dispensaries shall only be accessible by employees and authorized personnel. 3. Non-consumable, non-cannabis paraphernalia do not need to be behind a locked door. e. Dispensary Supply. A dispensary may possess no more than the following amounts of product at any one time in addition to live plants for sale that are in a vegetative (not mature) state: 1. Flower: Twenty (20) pounds; 2. Concentrate: One (1) kilogram of oil; 3. Edibles: No limitation; 4. Topicals: No limitation. f. Dispensing Operations. 1. Dispensaries and Delivery Only Dispensaries shall maintain records reflecting: (a) The full name, address, and telephone number(s) of the owner or lessee of the property.

(b) The full name, address, and telephone number(s) of all suppliers of marijuana in order to verify compliance with cultivation ordinance. (c) The full name, address, and telephone number(s) of all members of the dispensary or delivery only dispensary. (d) Copies of current and valid California Driver’s Licenses for employees of Delivery Only Dispensaries whose responsibilities include making deliveries to consumers. (e) A vehicle log of the make, model, year, photograph and registration information for all vehicles used to make deliveries. Photographs must illustrate that a vehicle used for deliveries is equipped with a secure lockbox, as described in Section 5-20c.1. Licensee shall promptly update the vehicle log as to any changes or additions to delivery vehicles and the updated log shall be transmitted to the police department within ten (10) days of any changes. 2. The licensee shall annually provide information on prior years’ operations verifying compliance with this section to the City Manager. Licensee shall modify dispensary operations as required by the City Manager to ensure compliance with all requirements of this section. g. Miscellaneous Operating Requirements. 1. Floor Plan. The main entrance of a dispensary (not applicable to a delivery only dispensary) shall be located and maintained clear of barriers, landscaping and similar obstructions so that it is clearly visible from public streets, sidewalks and site driveways. 2. Storage. A dispensary or delivery only dispensary shall have a locked safe on the premises, identified as a part of the security plan, for after-hours storage of marijuana. A dispensary or delivery only dispensary shall also have a secure area for the storage of immature plants and any other products specifically allowed under the license, which contain marijuana. 3. Minimum Staffing. The dispensary or delivery only dispensary shall be staffed during hours of operation by at least two (2) persons, one of whom must be a manager. 4. Odors. A dispensary or delivery only dispensary shall have an air treatment system that ensures off-site odors shall not result from its operations. 5. Security Plan. A dispensary or delivery only dispensary shall provide adequate security on the premises, as approved by the Police Chief and pursuant to this section, including lighting and alarms, to ensure the safety of persons and to protect the premises from theft. 6. Security Cameras. Security cameras required by this section shall be installed to monitor, at the minimum, the main entrance and exterior of the premises to discourage loitering, crime, and illegal or nuisance activities. 7. Security Video Retention. Security video shall be retained for thirty (30) days. Images shall be made available to the Police Chief upon a reasonable written request for the specific time period.

Alarm System. A State-licensed professionally monitored robbery and burglary alarm system shall be installed and maintained in good working condition. 9. Emergency Contact. A dispensary or delivery only dispensary shall provide the Police Chief and the Fire Chief with the name, phone number and facsimile number or email address of an individual working on the dispensary premises, to whom notice of problems associated with the operation of the dispensary can be provided. The dispensary or delivery only dispensary shall keep this information current at all times. The dispensary or delivery only dispensary shall make every good faith effort to encourage neighborhood residents to call this designated person to resolve operating problems, if any, before any calls or complaints are made to the City. h. Signage and Notices. 1. Signs on the premises shall not obstruct the entrance or the video surveillance system. The size, location, and design of any signage must conform to the sign provisions in the Clearlake Zoning Ordinance. 2. Business identification signage shall comply with the appropriate sign requirements with the applicable zoning district. i. Employee Records. Each owner or operator of a dispensary shall maintain a current register of the names of all employees currently employed by the dispensary, and shall disclose such registration for inspection by any City officer or official for purposes of determining compliance with the requirements of this section. j. Financial Review. Dispensary or delivery only dispensary must provide financial information for purposes of sales tax audits. Requested financial information shall be produced within fourteen (14) days after receipt of the City’s written request. k. Staff Training. 1. Dispensary or delivery only dispensary staff shall receive appropriate training for their intended duties to ensure understanding of rules and procedures regarding dispensing in compliance with State and local law. 2. The dispensary or delivery only dispensary shall take those steps necessary to assure that the persons assigned to provide security are properly trained or employed by a private security service in good standing with all supervisory or regulatory bodies exercising jurisdiction over such services. l. Site Management. 1. The operator of the establishment shall take all reasonable steps to discourage and correct conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if related to the patrons of the subject dispensary or delivery only dispensary. (a) “Reasonable steps” shall include calling the police within thirty (30) minutes of observation of the activity, requesting those engaging in activities that constitute a nuisance or are otherwise illegal to cease those activities, unless personal safety would be threatened in making the request.

(b) “Nuisance” includes but is not limited to disturbances of peace, open public consumption of marijuana or alcohol, excessive pedestrian or vehicular traffic, including the formation of any pedestrian lines outside the building, illegal drug activity, harassment of passersby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or police detentions and arrests. 2. The operator shall conspicuously post and provide customers with a list of the rules and regulations governing marijuana use and consumption within the City. m. Compliance with Other Requirements. The operator shall comply with all provisions of all applicable local or State laws, regulations or orders, as well as any condition imposed on any permits issued pursuant to applicable laws, regulations or orders. n. Confidentiality. To the extent protected by law, the information provided for purposes of this section shall remain confidential. o. Display of License. Every dispensary shall display at all times during business hours the license issued pursuant to the provisions of this section for such dispensary in a conspicuous place so that the same may be readily seen by all persons entering the dispensary. p. Payment of Fees. A licensee shall pay all annual license fees at the time that an original application is filed or an annual renewal application is submitted. q. Denial of Application. The City shall deny an application that fails to meet the requirements as set forth in this ordinance, or for any reason set forth in Section 26057 of the California Business and Professions Code. (Ord. #201-2017)

Licensed marijuana dispensaries may allow customers to consume or use marijuana and marijuana products on the premises of the marijuana dispensary provided the dispensary meets the following requirements: a. Access to the area where consumption is allowed is restricted to persons 21 years of age and older; b. Marijuana consumption shall not be visible from any public place or non-age restricted area; and c. Sale or consumption of alcohol or tobacco is not allowed on the premises; and d. Any other state law requirements are met. (Ord. #201-2017)

a. Licenses issued under this section shall expire one (1) year following the date of their issuance.

b. Licenses may be renewed by the City Manager for additional one (1) year periods upon application by the licensee, unless the license is suspended or revoked in accordance with the provisions of this section. c. The dispensary or delivery only dispensary shall be notified by the City on a timely basis that an annual renewal application is due to be filed. Complete applications for renewal shall be made at least forty-five (45) days before the annual expiration date of the license and shall be accompanied by the nonrefundable application fee referenced herein. Applications for renewal shall be governed by the same criteria applicable to initial applications for licenses. d. Applications for renewal made less than forty-five (45) days before the annual expiration date shall not stay the annual expiration date of the license, and in addition to satisfying all other applicable criteria for license renewal, the applicant shall be required to demonstrate good cause for failing to have timely filed the application for license renewal. The City Manager shall have the sole discretion to determine whether such good cause is demonstrated. e. Licenses may be revoked or suspended by the Planning Commission or City Council on the grounds and terms provided in this section. f. In the event that the City Manager and Police Chief are not able to act upon a license renewal application prior to the date said license expires, and said inability is due to no fault of the City, said license shall expire as of its expiration date and the dispensary or delivery only dispensary shall no longer operate after said expiration date. In such circumstances, should the licensee of the expired license desire to reestablish the right to operate a dispensary or delivery only dispensary, the licensee must do so by applying for a new dispensary or delivery only dispensary license complying with all requirements of this section applicable to an original application for a dispensary or delivery only dispensary license. Should the Planning Commission approve the license application, said decision shall be deemed effective on the date of the Planning Commission’s decision. g. The establishment of a youth-oriented facility within six hundred (600') feet of a dispensary or delivery only dispensary following the initial issuance of the license shall not be grounds for subsequently revoking the license, unless otherwise required by state law. (Ord. #201-2017)

a. Any license issued under the terms of this section may be suspended or revoked if the Planning Commission finds that the Licensee has violated any of the provisions of this section, or the dispensary is otherwise being operated in a manner that violates any of the provisions this section. b. Except as otherwise provided in this section, no dispensary or delivery only dispensary license shall be revoked or suspended by virtue of this section absent notice and a hearing. The City shall provide written notice to the licensee that the Planning Commission will hold a hearing, at a scheduled meeting, regarding the suspension or revocation of his/her dispensary or delivery only dispensary license. The City shall provide such notice no less than fifteen (15) days before the date of said hearing. The notice shall contain a brief statement of the grounds for revoking or suspending the licensee’s dispensary or delivery only dispensary license. Notice may be given either by personal delivery to the licensee (in which case, service shall have deemed to have been effected upon delivery of the notice), or by certified U.S. mail in a sealed envelope, postage prepaid, return receipt requested addressed to licensee at the address appearing on his/her dispensary license application (in which case, service shall be deemed to have been effected on the date the receipt indicates delivery was accomplished). c. If the Planning Commission finds that sufficient grounds exist for the revocation or suspension of a dispensary or delivery only dispensary license, then said determination shall be announced at the hearing, and written notice of said determination sent to the licensee by personal delivery or certified U.S. mail in a sealed envelope, postage prepaid, return receipt requested, and addressed to the licensee at the address appearing on his/her dispensary or delivery only dispensary license application. d. The decision of the Planning Commission may be appealed to the City Council. The decision of the City Council shall be final and conclusive and there shall be no right of appeal. e. Procedures for the above are not exclusive and the City reserves the right to enforce all applicable laws for any licensee’s violation of any law. (Ord. #201-2017)

a. A licensee shall not operate a dispensary or delivery only dispensary under the authority of a dispensary or delivery only dispensary license at any place other than the address of the dispensary or delivery only dispensary stated in the application for the license. b. A licensee shall not transfer ownership or control of a dispensary or delivery only dispensary or transfer a dispensary or delivery only dispensary license to another person unless and until the transferee obtains an amendment to the license from the Planning Commission stating that the transferee is now the licensee. Such an amendment may be obtained only if the transferee files an application with the City Manager in accordance with all provisions of this section (as though the transferee were applying for an original dispensary or delivery only dispensary license) accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee), and the Planning Commission determines (after hearing) in accordance this section that the transferee would be entitled to the issuance of an original license. The transferor must also approve the transfer in writing to the transferee. c. No license may be transferred when the City Manager or Police Chief has notified the licensee that the license has been or may be suspended or revoked. d. Any attempt to transfer a license either directly or indirectly in violation of this subsection is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the license. (Ord. #201-2017)

a. Every application for a dispensary or delivery only dispensary license or renewal shall be accompanied by a nonrefundable fee, as established by resolution of the City Council from time to time. This application or renewal fee shall include fingerprinting, photographing, and background check costs and shall be in addition to any other costs imposed by this Code or other governmental agencies. Fingerprinting, photographing, and background check fees shall be as established by resolution adopted by the City Council from time to time. The time frames for the implementation of this section shall not be in effect until the City Council adopts a fee resolution. b. All fees established by the Council to implement this section will reflect the City’s costs to complete the requirements of the section. In addition, there will be a one-time fee to initiate the application process and an annual renewal fee. (Ord. #201-2017)

a. It is unlawful for any person, individual, partnership, co-partnership, firm, association, joint stock company, corporation, limited liability company or combination of the above in whatever form or character to violate any provision or fail to comply with any of the requirements of this section and/or any dispensary or delivery only dispensary license issued here under. b. A violation of this section and/or the terms of a dispensary or delivery only dispensary license issued here under shall be subject to civil and criminal penalties in accordance with the Clearlake Municipal Code, unless otherwise provided by state law. (Ord. #201-2017)

All remedies prescribed under this section shall be cumulative and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. (Ord. #201-2017)

Any person that violates any provision of this section shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be penalized accordingly. (Ord. #201-2017)

Any use or condition caused or permitted to exist in violation of any of the provisions of this section and/or any dispensary or delivery only dispensary license issued here under shall be and is hereby declared a public nuisance and may be summarily abated by the City. (Ord. #201-2017)

Any person who violates, causes, or permits another person to violate any provision of this section and/or any dispensary license issued hereunder commits a misdemeanor, unless state law provides otherwise. (Ord. #201-2017)

The violation, or threatened violation, of any provision of this section and/or any dispensary license issued hereunder shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of City Council, create a cause of action for injunctive relief, which may be brought by the City Attorney. (Ord. #201-2017)

In addition to the civil remedies and criminal penalties set forth above, any person that violates the provisions of this section and/or any dispensary license issued here under may be subject to administrative remedies as set forth in the Code. (Ord. #201-2017)

All ordinances or parts of ordinances or resolutions in conflict herewith are hereby repealed to the extent of such conflicts and no further. (Ord. #201-2017)

The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance No. 201-2017. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance No. 201-2017 shall become effective 30 days from its adoption. (Ord. #201-2017)