Cudahy Municipal Code Ch. 5.30 Cannabis Retailers

(1) Except as specifically authorized by this chapter, to the fullest extent permitted by state law, the city expressly prohibits any and all commercial cannabis retailers within the city. In particular and if allowable under state law, the city hereby expressly prohibits the delivery of cannabis and cannabis products within the city except by cannabis retailers based within the city and permitted under this chapter. If the city is required by state law to permit the delivery of cannabis and cannabis products by cannabis retailers (including commercial cannabis businesses engaged in retail sales) not based within the city, such commercial cannabis businesses and cannabis retailers not based within the city shall be required to comply with the requirements under this chapter, including the city retail cannabis business permit application and approval processes under CMC 5.30.070.

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

(3) To the extent expressly authorized in this chapter and Title 20 CMC, cannabis retailers are permitted in the city, subject to the satisfaction of all requirements set forth in this chapter, Title 20 CMC, MAUCRSA, and all other applicable state and local laws, rules, and regulations. (Ord. 730 § 5, 2022).

It is the responsibility of the owners, managers, officers, employees, and agents of any cannabis retailer to ensure that it is operating in a manner compliant with all applicable state and local laws and any regulations promulgated thereunder. Nothing in this chapter shall be construed as in conflict with state law. (Ord. 730 § 5, 2022).

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

(1) “Applicant” means the person applying for the retail cannabis business permit under this chapter (not the owners or the managers of the applicant).

(2) “Cannabis” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(3) “Cannabis business” means a person engaged in commercial cannabis activity.

(4) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the California Health and Safety Code, or drug, as defined by Section 109925 of the California Health and Safety Code.

(5) “Cannabis product” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(6) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code.

(7) “City manager” means the city manager of the city of Cudahy or his or her designee(s).

(8) “City” means the city of Cudahy, state of California.

(9) “City attorney” means the city attorney of the city of Cudahy or his or her designee(s).

(10) “City council” means the city council of the city of Cudahy.

(11) “Commercial cannabis activity” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(12) “County” means the county of Los Angeles, state of California.

(13) “Customer” means a natural person 21 years of age or over or a natural person 18 years of age that is a qualified patient or primary caregiver.

(14) “Day care center” or “childcare facility” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(15) “Delivery” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(16) “Dispensary” or “retailer” or “cannabis retailer” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(17) “Dispensing” or “retail sale(s)” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(18) “Employee” means each natural person employed by a cannabis retailer who is a part-time, full-time, temporary, or permanent employee.

(19) “Gross receipts” means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest paid or payable, losses, or any other expense whatsoever. However, the following shall be excluded from gross receipts:

(a) Cash discounts where allowed and taken on sales;

(b) Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

(c) Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

(d) Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business;

(e) Cash value of sales, trades, or transactions between departments or units of the same business;

(f) Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a given year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered;

(g) Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of $1.00; and

(h) Any proceeds resulting from a transfer or change of ownership or control in the business.

(20) “Labor peace agreement” means an agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the city’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis retailer’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment.

(21) “Licensing authority” means a state agency responsible for the issuance, renewal, or reinstatement of state license, or a state agency authorized to take disciplinary action against a state licensee.

(22) “Liquid assets” means assets that can be readily converted into cash. “Liquid assets” include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. “Liquid assets” does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto.

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

(24) “MAUCRSA” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(25) “Measure” means the Cannabis Business Accountability Measure.

(26) “Owner” means any of the following:

(a) A person owning in the aggregate equity interests representing 10 percent or more of the voting power of all outstanding equity in the applicant or a permittee;

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

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

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

(27) “Panic button” means an emergency electronic contact device which allows an employee in the event of an ongoing crime, threat, or other emergency to alert a security guard responsible for providing immediate on-scene assistance.

(28) “Patient” or “qualified patient” means a natural person who is entitled to the protections of Section 11362.5 of the California Health and Safety Code and includes a person issued an identification card issued pursuant to Article 2.5 of Chapter 5.30 of Division 10 of the California Health and Safety Code.

(29) “Permittee” or “cannabis permittee” means the holder of a valid, city-issued retail cannabis business permit.

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

(31) “Person with an identification card” shall have the meaning given to that term in Section 11362.7 of the California Health and Safety Code.

(32) “Place of religious assembly” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

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

(34) “Retail cannabis business permit” means a regulatory permit/license issued by the city pursuant to this chapter to a cannabis retailer and is required before any cannabis retail sales may be conducted in the city and is made expressly contingent upon the cannabis retailer’s ongoing compliance with all of the requirements of this chapter and any regulations adopted by the city governing cannabis retail sales.

(35) “Sale” means any sale, exchange, or barter or other transaction for any consideration.

(36) “School” has the same meaning as defined in Chapter 20.88 CMC, Definitions.

(37) “State” means the state of California.

(38) “State license” means a permit or license issued by the state, or one of its departments or divisions, under MAUCRSA and any subsequent state legislation regarding the same to engage in cannabis retail sales.

(39) “Youth center” has the same meaning as defined in Chapter 20.88 CMC, Definitions. (Ord. 730 § 5, 2022).

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

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

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

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

(d) A valid certificate of occupancy issued by the city’s building and safety department to conduct the cannabis retail sales at the premises identified in the retail cannabis business permit. (Ord. 730 § 5, 2022).

(1) The total number of retail cannabis business permits for retailers based within the city shall be two, with one retail cannabis business permit issued to a retailer located in the Civic Mixed-Use Zone (CivicMU) and one retail cannabis business permit issued to a retailer located in the Urban Agriculture Overlay Zone (-UA).

(2) The number of retail cannabis business permits for retailers (including commercial cannabis businesses engaged in retail sales) based outside the city to engage in delivery within the city shall be zero. However, should a court of competent jurisdiction, as a judicial remedy, order the city council to increase the maximum number of retail cannabis business permits issued for retailers (including commercial cannabis businesses engaged in retail sales) based outside the city to engage in delivery within the city, the number of retail cannabis business permits for retailers (including commercial cannabis businesses engaged in retail sales) based outside the city to engage in delivery within the city shall be no more than two.

(3) The maximum number of retail cannabis business permits issued for cannabis retailers based within the city or outside the city (including commercial cannabis businesses engaged in retail sales) may not be amended by the city council or regulations promulgated by the city manager pursuant to this chapter. However, (a) the city council may and shall increase the maximum number of retail cannabis business permits issued for retailers based within the city or outside the city (including commercial cannabis businesses engaged in retail sales) if ordered to do so by a court of competent jurisdiction as a judicial remedy or (b) the city council may increase the maximum number of retail cannabis business permits issued, via ordinance, for retailers based within the city to provide for one retail cannabis business permit issued for retailers based within the city per every 10,000 residents of the city as determined by the U.S. Census. (For example, in 2020, the U.S. Census determined that the city had a population of 22,811; therefore, the number of retail cannabis business permits for retailers based within the city shall be two. However, if a future U.S. Census determines that the population of the city exceeds 30,000, the city council may increase the number of retail cannabis business permits for retailers based within the city to three, unless the number of retail cannabis business permits for retailers based within the city has already been increased to three or more pursuant to subsection (2) of this section, and so on and so forth.) (Ord. 730 § 5, 2022).

Pursuant to the authority delegated by the state to the city under Section 26054(b) of the California Business and Professions Code and overriding the location and design requirements contained in Section 26054(b) of the California Business and Professions Code, cannabis retailers in the city shall be subject to the following location and design requirements:

(1) Retailers shall be a permitted use subject to both the described application criteria and this chapter on property (a) located more than 600 feet from any school, day care center, youth center, or place of religious assembly and (b) zoned: Civic Mixed-Use (CivicMU) or Urban Agriculture Overlay Zone (-UA)

(2) The distances specified in this section shall be measured in a straight line without regard to intervening structures, from the nearest point of the premises, measured from the walls of the premises to the nearest property line of the sensitive use.

(3) Each cannabis retailer shall:

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

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

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

(d) Comply with all applicable standards and requirements for the design and construction of buildings and the landscaping and design of any property upon which a building is located and signage as the same are set forth under Titles 15, 16, 19 and 20 CMC. (Ord. 730 § 5, 2022).

(1) Within 90 days following the effective date of this chapter, the city manager, pursuant to CMC 5.30.210, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers up to the maximum number of retail cannabis business permits authorized in CMC 5.30.050.

(2) The city manager shall, as a ministerial duty, cease acceptance of retail cannabis business permit applications 30 days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers.

(3) Within 60 days of ceasing the acceptance of retail cannabis business permit application for retailers, the city manager shall, as a ministerial duty, review timely submitted retailer applications for the following minimum requirements:

(a) Payment of an application fee established by resolution of the city council within 60 days following the effective date of this chapter to cover all costs incurred by the city in the application process;

(b) Sufficient evidence of the legal right to use the proposed property for the proposed use, to include a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a retail cannabis business permit or other approvals. The city shall only consider one applicant per property address or county assessor’s identification number. In the event that more than one applicant applies for a retail cannabis business permit application at a given property address or a given county assessor’s identification number, the city manager shall, as a ministerial duty, only accept the retail cannabis business permit application with the earliest effective date for the evidence of the legal right to use the proposed property for the proposed use in the name of the applicant;

(c) Sufficient evidence to demonstrate that the proposed property complies with the location and zoning requirements in CMC 5.30.060;

(d) Proof that an owner or owners of the applicant with an aggregate ownership interest of 50 percent or more has served as an owner or owners with an aggregate ownership interest of 50 percent or more of four or more other cannabis retailers licensed by a city, county, or state since at least January 1, 2022;

(e) Proof of funds showing that the applicant has access and control of over $500,000 in liquid assets (which such liquid assets having been under possession for at least 90 days prior to the date of the application submission under this section), which may be shown via a binding legal agreement in the name of the applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement that demonstrates access and control of over $500,000 in liquid assets under possession for at least 90 days prior to the date of the application submission under this section. Applicants and permittees shall not be required to show that the applicant or permittee has access and control of over $500,000 in liquid assets except on initial application pursuant to this section, a change in location application pursuant to CMC 5.30.130, or an ownership transfer application pursuant to CMC 5.30.140;

(f) For an applicant with two or more employees, proof of a labor peace agreement between a bona fide labor organization and the applicant (the applicant shall provide the city with a copy of the labor peace agreement that contains the signatures of the union representative and the cannabis business). For applicants with less than two employees who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 30 days after employing two employees;

(g) A set of plans, including a site development plan, floor plan(s), building elevations (all four sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;

(h) Colored interior and elevation renderings;

(i) A completed background check application and receipt for each owner and manager of the applicant pursuant to CMC 5.30.180(12); and

(j) The following application components: (i) qualifications of the applicant’s owners and managers; (ii) business and operations plan; (iii) security plan; (iv) safety plan; (v) neighborhood compatibility plan; (vi) labor and employment plan; and (vii) community benefits plan.

The city manager shall, as a ministerial duty, reject any retail cannabis business permit application that fails to meet the minimum requirements contained in this subsection (3), and applicants shall not have the right to supplement or amend their retail cannabis business permit applications.

(4) Within 90 days of completing the application review under subsection (3) of this section, the city manager shall, as a ministerial duty, review and score any complete applications pursuant to the following objective review criteria according to the following quantitative evaluation scale:

(a) Qualifications of the Applicant’s Owners and Managers – 150 Points. The people of the city find that a proven track-record of cannabis retailer operations that successfully generate tax revenue carries out the purpose and intent of the measure and are, therefore, critical for an applicant to demonstrate the qualifications of the applicant’s owners and managers. Accordingly, 100 of the 150 points awardable under this subsection shall only be awarded, as a ministerial duty, if an owner or owners of the applicant with an aggregate ownership interest of 50 percent or more is currently at the time of application submission under this section an owner or owners with an aggregate ownership interest of 50 percent or more of a single licensed and lawfully operating commercial cannabis retailer operation (excluding any nonretailer microbusiness, cultivation, manufacturing, distribution, or other nonretailer commercial cannabis operation components) that has generated at least $5,000,000 in gross receipts in a consecutive six-month period in the year immediately preceding the date of the application submission under this section, as demonstrated by tax payment receipts from, tax filings to, or tax returns filed with a city, county, or state.

The remaining 50 of the 150 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 25 Points. A description of the applicant’s owner and manager qualifications detailing any special business or professional qualifications or licenses of the applicant’s owner and manager that would add to the quality of services that the cannabis business would provide, including in areas related to cannabis, such as legal, finance, business ownership/administration, real estate development, scientific, or healthcare fields.

(ii) Up to 25 Points. Documentation that the applicant’s owners and managers have experience operating cannabis retailers in any jurisdiction where cannabis retailers are permitted.

(b) Plans, Renderings, and Overall Location – 50 Points. The 50 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 10 Points. A premise diagram in accordance with Section 5006 of Division 42 of Title 16 of the California Code of Regulations.

(ii) Up to 10 Points. A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in the city zoning code. Information on existing conditions shall include:

(A) Exterior renderings or photographs showing all sides of any existing structure(s);

(B) Plans or photographs of existing parking areas, landscaping, trash enclosure, and signage;

(C) Information on existing or former use on the site, including the addresses, uses, and square footages;

(D) Plans or photographs of the existing site if the site is vacant; and

(E) Photographs of adjacent properties for context.

(iii) Up to 10 Points. A floor plan showing information on the existing layout and proposed layout of the building interior.

(iv) Up to 10 Points. Building elevations that provide information on existing conditions and proposed improvements.

(v) Up to Five Points. A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species.

(vi) Up to Five Points. Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements).

(c) Business and Operations Plan – 100 Points. The 100 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 10 Points. A written description of the total square footage of the facility with estimated square footage of proposed uses.

(ii) Up to 10 Points. A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.

(iii) Up to 10 Points. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.

(iv) Up to Five Points. A description of the sources(s) of capital and use(s) of capital.

(v) Up to 10 Points. Pro forma financial statements for at least three years of operation.

(vi) Up to Five Points. A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.

(vii) Up to Five Points. A description of marketing procedures and tactics.

(viii) Up to 10 Points. A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.

(ix) Up to Five Points. A description of hours of operation and opening procedures.

(x) Up to 10 Points. A description of cash handling procedures.

(xi) Up to 10 Points. A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software.

(xii) Up to 10 Points. A description of transportation, loading and unloading, distribution, or delivery procedures.

(d) Security Plan – 100 Points. The 100 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 20 Points. The security plan is prepared by a professional security consultant.

(ii) Up to 10 Points. A premises security diagram.

(iii) Up to 50 Points. A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this chapter.

(iv) Up to 10 Points. A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.

(v) Up to 10 Points. A description of the services of on-site security guards to include the (A) number of security guards; (B) the hours security guards will be on site; (C) locations where security will be positioned; and (D) security guard responsibilities.

(e) Safety Plan – 100 Points. The 100 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 20 Points. The safety plan is prepared by a professional fire prevention and suppression consultant.

(ii) Up to 10 Points. A premises safety diagram to include (A) a description/illustration of evacuation routes and (B) location of fire extinguishers and other fire suppression equipment.

(iii) Up to 50 Points.

A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this chapter.

(iv) Up to 10 Points. Identify all gases, pesticides, and chemicals to be used and their storage locations.

(v) Up to 10 Points. A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.

(f) Neighborhood Compatibility Plan – 350 Points. The 350 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 150 Points. A “good neighbor policy” that (A) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis business and (B) describes how the cannabis business and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.

(ii) Up to 50 Points. A description of odor mitigation practices to include: (A) identifying potential sources of odor; (B) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (C) all proposed staff odor training and system maintenance.

(iii) Up to 50 Points. A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant’s security measures and methods of rendering waste unusable and unrecognizable.

(iv) Up to 100 Points. A description of how the proposed location is suitable for the proposed cannabis retail use considering the neighboring uses in the vicinity and existing private/public improvements.

(g) Community Benefits Plan – 100 Points. The people of the city find that monetary donations to local nonprofit organizations, financial support of city sponsored activities or organizations, in kind donations to the city or other charitable organizations, and economic incentives to the city carry out the purpose and intent of the measure and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, 50 of the 100 points awardable under this subsection shall only be awarded if the applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to one percent of projected gross receipts of the applicant to a public school located within the city, a public park located within the city, and/or a public or nonprofit community organization serving the city or its residents, subject to annual review and final approval by the city. Beyond the above, no further direct financial contributions shall be considered as part of an applicant’s community benefits plan.

The remaining 50 of the 100 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 25 Points. A description of a social responsibility plan to include identification of a community liaison, plans to serve as a social equity business incubator, plans to aide and participate in the work of local nonprofits, community-based organizations, civic organizations, or social services organizations.

(ii) Up to 25 Points. A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.

(h) Labor and Employment Plan – 150 Points. The people of the city find that a proven track-record of cannabis retailer operations with high labor standards and commitment to labor peace carry out the purpose and intent of the measure and are, therefore, critical for an applicant to demonstrate an effective labor and employment plan. Accordingly, 50 of the 150 points awardable under this subsection shall only be awarded if the applicant provides documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of 90 percent or more have entered into collective bargaining agreements with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section) and such collective bargaining agreements accrete or automatically apply to all cannabis retailers permitted or licensed in the state after July 1, 2021 (notwithstanding the fact that employees of such cannabis retailers permitted or licensed in the state after July 1, 2021, (if any) have yet to have had an opportunity to recognize the labor organization that currently represents cannabis workers in the United States), by the individual or natural person, owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of 90 percent or more referenced above.

The remaining 100 of the 150 points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

(i) Up to 10 Points. An organizational chart of showing owners, managers, and employees.

(ii) Up to 10 Points. A description of the owner’s and manager’s roles in day-to-day operations and decisions.

(iii) Up to 10 Points. A description of the number of employees, title/position, and their respective responsibilities.

(iv) Up to 15 Points. A description of compensation to employees, opportunities for continuing education, and employee training.

(v) Up to 15 Points. A description of whether the cannabis business is committed to offering employees a living wage.

(vi) Up to 15 Points. A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.

(vii) Up to 15 Points. A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.

(viii) Up to 10 Points. A description of a plan to have at least 50 percent of employee positions filled and hours worked by employees residing in the city.

(5) Upon timely receipt of a retail cannabis business permit application, the city manager shall conduct background checks in accordance with CMC 5.30.180(12). Following review and scoring of complete applications pursuant to objective review criteria under subsection (4) of this section, the city manager shall, as a ministerial duty, issue retail cannabis business permits to applicants in order of their rank under subsection (4) of this section up to the maximum number of retail cannabis business permits authorized in CMC 5.30.050. In the event of a tie in the order of ranking under subsection (4) of this section between one or more applicants up to the maximum number of retail cannabis business permits authorized in CMC 5.30.050, the city manager shall, as a ministerial duty, break the tie and issue retail cannabis business permits to the applicants with the highest scoring application component in the following order: (a) neighborhood compatibility of proposed location; (b) qualifications of the applicant’s owners and managers; (c) labor and employment plan; (d) security plan and safety plan; (e) community benefits plan; (f) neighborhood compatibility plan; (g) business and operations plan; and (h) plans, renderings, and overall location. In the event of a tie on all application components between one or more applicants up to the maximum number of retail cannabis business permits authorized in CMC 5.30.050, the city manager shall not hold a public lottery, but rather arrange for the tied applicants to provide public presentations before the city council, after which the city council shall publicly rank the applicants pursuant to ranking sheets prepared by the city manager that achieve a forced ranking based on all of the objective review criteria and quantitative evaluation scale in subsection (4) of this section, and the city manager shall issue retail cannabis business permits to applicants in order of their rank up to the maximum number of retail cannabis business permits available following the city manager’s original ranking and issuance of retail cannabis business permits and the limits contained in CMC 5.30.050. However, the city manager shall not issue a retail cannabis business permit to any applicant with an owner or manager that:

(a) Provided false or misleading information on the applicant’s retail cannabis business permit application;

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

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

(6) Any decision of the city manager or city council under this section shall be a final administrative decision not subject to administrative appeal under any provisions of this chapter or any provisions of this code but, rather, subject to judicial review and remedies.

(7) In the event that (a) the number of active, operating retailers and issued retail cannabis business permits falls below the maximum number of retail cannabis business permits for retailers authorized in CMC 5.30.050 or (b) the city council is ordered to increase the maximum number of retail cannabis business permits issued for retailers by a court of competent jurisdiction as a judicial remedy (e.g., if a court of competent jurisdiction orders the city council to make retail cannabis business permits available for retailers (including cannabis businesses engaged in retail sales) based outside the city to engage in delivery within the city), the city manager shall, as a ministerial duty, within 60 days reinstitute the application procedure under this section, subject to the maximum number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. For the purpose of this section, a retailer shall be considered operating if (a) upon initial issuance of retail cannabis business permit (or approval of a change in location pursuant to CMC 5.30.130), the retailer commences lawful operations within 24 months or (b) following initial commencement of lawful operations, the retailer does not cease or abandon operations for 120 consecutive or cumulative days in any one-year period.

(8) Upon issuance of a retail cannabis business permit, the cannabis permittee shall be required to make a presentation to the city manager, the director of community development, and/or the city council and members of the public at a public noticed hearing. The purpose of the presentation is to inform the members of the public of the cannabis business permit application process, selection, location, operation and allow members of the public to provide public comment. (Ord. 730 § 5, 2022).

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

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

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

(3) Defend and indemnify the city for all costs and expenses, including but not limited to attorneys’ fees and court costs, that the city may be required to pay as a result of any legal challenge related to the city’s approval of the applicant’s retail cannabis business permit or related to the city’s approval of cannabis retail sales. The city, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall neither relieve nor increase any of the obligations imposed on the applicant hereunder. (Ord. 730 § 5, 2022).

(1) Subject to this section and CMC 5.30.100, the term of each retail cannabis business permit shall be indefinite.

(2) Upon the one year anniversary of the date of issuance for each retail cannabis business permit and every year thereafter, the city manager shall conduct a performance review of the permittee to assess compliance with the requirements of this chapter. Within 30 days of the conclusion of the annual performance review of the permittee, the city manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have 60 days to remedy such noncompliance. However, in the event such noncompliance items cannot be reasonably remedied within 60 days, such noncompliance items shall not constitute a serious material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this chapter subject to suspension or revocation under CMC 5.30.100 if the permittee commences correction of such noncompliance items within 60 days and thereafter diligently prosecutes correction of such noncompliance items to completion.

(3) The permittee shall pay a fee in an amount to be set by the city council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the city to administer the program created under this chapter. (Ord. 730 § 5, 2022).

(1) The city manager may suspend or revoke a retail cannabis business permit for any material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this chapter.

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

(3) A permittee shall inform the city manager or designee(s) of any suspension, revocation, or termination of a state license corresponding to its retail cannabis business permit within five business days of the suspension, revocation, or termination of the state license. (Ord. 730 § 5, 2022).

(1) Within 10 calendar days after the date of a decision of the city manager to revoke or suspend an issued retail cannabis business permit, an aggrieved party may appeal such action by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper. An appeal shall stay all proceedings in furtherance of the appealed action.

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

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

(4) 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 10 days prior to the date of the hearing.

(5) 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.

(6) At the conclusion of the hearing the city council may affirm, reverse, or modify the decision appealed. The decision of the city council shall be a final administrative decision, subject to judicial review and remedies. (Ord. 730 § 5, 2022).

(1) A permittee may change the business location specified in a retail cannabis business permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under CMC 5.30.210 after two years following the issuance of a retail cannabis business permit. The permittee shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in location applications.

(2) Upon submission of a change in location application by a permittee, the city manager shall, as a ministerial duty, complete processing of such change in location application. If a change in location application is incomplete or the proposed changed location contained therein does not comply with location and zoning requirements in CMC 5.30.060, the city manager shall, as a ministerial duty, deny the change in location application. If a change in location application is complete and the proposed changed location contained therein complies with location and zoning requirements in CMC 5.30.060 and this section, the city manager shall, in his or her sole discretion, approve or deny the change in location application. In the event the city manager denies a change in location application, the permittee may appeal the city manager’s denial to the city council pursuant to CMC 5.30.110.

(3) An applicant or permittee shall notify the city manager or designee(s) within 15 calendar days of any material change in the information provided in the applicant or permittee’s retail cannabis business permit application or any change in status of compliance with the provisions of this chapter, including any change in the cannabis retailer ownership or management. (Ord. 730 § 5, 2022).

(1) An owner of a retail cannabis business permit shall not transfer ownership or control of such permit to another person unless and until the permittee and transferee obtain an amendment to the permit from the city manager stating that the transferee is now an owner of the permittee. A permittee may change the ownership specified in a retail cannabis business permit upon submission and approval of a change in ownership application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under CMC 5.30.210 within 180 days following the effective date of this chapter. The permittee shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in ownership applications. The city manager shall process such change in ownership applications as a ministerial duty within five business days once the city manager reasonably determines that the transferee passed the background check required for owners and meets all other requirements of this chapter.

(2) Notwithstanding subsection (1) of this section, during the first three years following the issuance of a retail cannabis business permit, the city manager shall not process any application to change the ownership or control of a commercial cannabis business permit that results in the permittee altering its ownership composition in a manner that would result in the permittee not being entitled to points it was awarded when the permittee was an applicant pursuant to CMC 5.30.070. For example, if a permittee received 100 points when it was an applicant for providing documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of 90 percent or more have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section), the city manager shall not process or authorize any change in ownership or control of the permittee if the change would result in the permittee being unable to continue to satisfy the aforementioned criteria subsequent to its approval.

(3) Notwithstanding subsection (1) of this section, no retail cannabis business permit may be transferred when the city manager has notified the permittee that its retail cannabis business permit has been or may be suspended or revoked.

(4) Any attempt to transfer a retail cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit. (Ord. 730 § 5, 2022).

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

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

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

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

(5) Subject to any applicable restrictions under the Health Insurance Portability and Accountability Act (“HIPAA”) regulations, each cannabis retailer shall grant the city manager access to the business’s books, records, accounts, together with any other data or documents relevant to its operation, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents shall be produced no later than 10 business days after receipt of the city manager’s request for such data, unless otherwise stipulated by the city manager. The city manager may require the materials to be submitted in an electronic format that is compatible with the city’s software and hardware. (Ord. 730 § 5, 2022).

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

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

(b) Establishing limited access areas accessible only to authorized cannabis retailer 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 designed to prevent diversion, theft, and loss.

(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 retailer, which are open and accessible to the public, all interior spaces where cannabis, cash or currency is being stored for any period of time on a regular basis, and all interior spaces where diversion of cannabis could reasonably occur. The cannabis retailer shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the city manager, and that it is compatible with the city’s software and hardware. Video recordings shall be maintained for a minimum of 90 days and shall be made available to the city manager upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis retailer.

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

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

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

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

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

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

(2) Each cannabis retailer shall identify a designated security representative or liaison to the city, who shall be reasonably available to meet with the city manager regarding any security related measures or any operational issues.

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

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

(5) A cannabis retailer shall notify the city manager 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 manager.

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

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

(d) Any other breach of security. (Ord. 730 § 5, 2022).

No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis retailer. (Ord. 730 § 5, 2022).

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

(2) All cannabis retailers authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state, and local law. Each cannabis retailer shall cooperate with city with respect to any reasonable request to audit the cannabis retailer’s books and records for the purpose of verifying compliance with this section, including, but not limited to, a verification of the amount of taxes required to be paid during any period. (Ord. 730 § 5, 2022).

(1) Cannabis retailers may be open to the public for retail sales during the hours specified by state law, but in no event later than 10:00 p.m.

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

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

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

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

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

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

(8) Signage and Notices.

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

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

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

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

(e) No signs placed on the exterior to premises of (or otherwise visible to the public) a cannabis retailer shall depict cannabis, in particular a cannabis leaf, cannabis products, or a green cross.

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

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

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

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

No owner, manager, supervisor, employee, or volunteer of the cannabis retailer shall:

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

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

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

(14) Within 60 days of licensure, for a permittee with two or more employees, the permittee shall attest to the city that the permittee has entered into a labor peace agreement and will abide by the terms of the agreement. The permittee shall submit a copy of the page of the labor peace agreement that contains the signatures of the labor representative and the applicant. For permittees with less than two employees who have not yet entered into a labor peace agreement, the permittee shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 30 days after employing two employees. If an attestation that the permittee is party to a labor peace agreement, and a copy of the page of the labor peace agreement that contains the signatures of the labor representative was submitted to the city by the permittee as part of the application process, that will meet this obligation.

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

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

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

(c) Paying a living wage to employees. “Living wage” means compensation equivalent to $20.00 per hour excluding benefits and tips.

(16) It shall be unlawful for a cannabis retailer to discriminate in any manner or take adverse action against any employee in retaliation for exercising rights protected under this chapter or city or state law. These rights include, but are not limited to (a) the right to file a complaint or inform any person about any party’s alleged noncompliance with this chapter or city or state law and (b) the right to inform any person of his or her potential rights under this chapter or city or state law and to assist him or her in asserting such rights. Protections under this chapter or city or state law shall apply to any employee who mistakenly, but in good faith, alleges noncompliance with this chapter or city or state law. Taking adverse action against an employee within 90 days of the employee’s exercise of rights protected under this chapter or city or state law shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights. (Ord. 730 § 5, 2022).

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

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

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

(4) All restroom facilities shall remain locked and under the control of managers on site.

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

(a) “The sale or diversion of cannabis or cannabis products without a license issued by the city of Cudahy is a violation of state law and this code.”

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

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

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

(e) “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis-derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the state of California to cause cancer and reproductive harm.” (Ord. 730 § 5, 2022).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i) For each individual delivery transaction, the gross receipts charged by the retailer and received by the individual conducting deliveries on behalf of the retailer for the cannabis or cannabis products dispensed and received.

(9) The individual making deliveries on behalf of the retailer shall personally verify for each individual delivery transaction the identity of the customer receiving cannabis or cannabis products from the retailer and (a) for medicinal cannabis or medicinal cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of 18 years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Sections 11362.71 through 11362.77 of California Health and Safety Code, as may be amended from time to time, on site for period of not less than seven years or (b) for cannabis or cannabis products to an adult-use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of 21 years. (Ord. 730 § 5, 2022).

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

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

(3) Regulations promulgated by the city manager shall become effective upon date of publication. Cannabis retailers shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the city manager. (Ord. 730 § 5, 2022).

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

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

(3) Cannabis retailers to which a retail cannabis business permit is issued pursuant to this chapter shall develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. (Ord. 730 § 5, 2022).

The amount of any fee, cost, or charge imposed pursuant to this chapter shall be deemed a debt to the city that is recoverable via authorized processes as set forth in this code or available through any court of competent jurisdiction. (Ord. 730 § 5, 2022).

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

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

(3) It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any location, structure, or vehicle in the city by a person (a) that does not have a valid retail cannabis business permit issued by the city; (b) that does not have a valid state license; (c) that does not have any other applicable approvals, including, but not limited to, a building permit and city business license; or (d) that is not currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis retail sales. Property owners shall have strict liability for any cannabis retail sales at any location, structure, or vehicle in the city by a person (a) that does not have a valid retail cannabis business permit issued by the city or (b) that does not have a valid state license. (Ord. 730 § 5, 2022).

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

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

(3) The city manager or designee(s) charged with enforcing the provisions of this chapter may enter the location of a cannabis retailer at any time during business hours and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the city shall be logged, recorded, and maintained in accordance with the city law enforcement standards for evidence. (Ord. 730 § 5, 2022).

It is the stated intent of this chapter to regulate cannabis retail sales in the city concurrently with the state. (Ord. 730 § 5, 2022).

Each and every serious material violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance. (Ord. 730 § 5, 2022).

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 serious material violation of this chapter shall be subject to injunctive relief, any retail cannabis business permit issued pursuant to this chapter being deemed null and void, disgorgement, and payment to the city of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney’s fees, and any other relief or remedy available at law or in equity. The city may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the cannabis retailer or persons related to, or associated with, the cannabis retail sales. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the city manager or designee(s) may take immediate action to temporarily suspend a retail cannabis business permit issued by the city, pending a public hearing before the city council. (Ord. 730 § 5, 2022).

Each and every serious material violation of the provisions of this chapter may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed $1,000 or imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment. Each day a serious material violation is committed or permitted to continue shall constitute a separate offense. (Ord. 730 § 5, 2022).

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 or equity. (Ord. 730 § 5, 2022).

Nothing in this chapter shall be construed to supersede, repeal, nullify, or otherwise render inapplicable or unenforceable any other provision of this code not in conflict with the express provisions of this chapter, including but not limited to nonconflicting provisions of Titles 15, 16, 19 and 20 CMC. In the event of any conflict or inconsistency between the express provisions of this chapter and any other provisions of this code adopted by the city council, the provisions of this chapter shall govern and control but only to the limited extent of the conflict or inconsistency and no further. All such conflicts or inconsistencies shall be construed narrowly so as to allow for the broadest application of all other provisions of this code. The city council further reserves and retains the right to amend or modify, in its sole and absolute discretion, any and all provisions of this code, excluding the provisions of this chapter, to the extent any such amendments or modifications are not in conflict with the express provisions of this chapter. (Ord. 730 § 5, 2022).