Del Rey Oaks Municipal Code Ch. 5.20 Commercial Cannabis Regulations

Footnotes:

--- (1) ---

Cross reference— For provisions regarding cannabis business tax see Ch. 4.07 of this Code.

It is the purpose and intent of this chapter to regulate commercial and personal cultivation, retail sales, manufacturing, testing, distribution, delivery, and transportation of medicinal and nonmedicinal adult use cannabis (including cannabis products and edible cannabis products) within the City of Del Rey Oaks.

The regulations and prohibitions in this chapter are enacted to ensure the health, safety, and welfare of the residents of the City. The regulations and prohibitions herein, which are in compliance with the Compassionate Use Act of 1996 (CUA), the Medical Marijuana Program (MMP), the Medical Cannabis Regulation and Safety Act (MCRSA), the Control, Use, Tax Adult Use of Marijuana Act (AUMA), and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) (collectively, "State Law"), do not interfere with the use and possession of cannabis as authorized under State law.

Nothing in this chapter shall be construed to: (1) allow persons to engage in conduct that endangers others or causes a public nuisance, or (2) allow any activity relating to the cultivation, manufacturing, testing, distribution, transportation, or use of cannabis that is otherwise illegal under California state law.

(Ord. No. 289, § 2, 10-24-2017)

Unless the particular provision or context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter. Words and phrases not specifically defined in this code shall have the meaning ascribed to them and as defined in State Law.

Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" also means cannabis as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972.

Cannabis accessories means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body.

Cannabis dispensary/retailer means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale.

Cannabis manufacturer means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or re-labels its container.

Cannabis products means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

City means the City of Del Rey Oaks.

City Manager means the City Manager of Del Rey Oaks or their designee.

Commercial cannabis business means any commercial operation associated, in whole or in part, with the retail sale, cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transporting, sale, dispensing, delivery or transport of cannabis and cannabis products, whether for medical or non-medical purposes, or both.

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

Delivery means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed under California law, which enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products.

Distribution means the procurement, sale, and transport of cannabis and cannabis products between entities for commercial use purposes.

Fully enclosed and secured structure means a space within a building, or other approved structure which has a complete roof enclosure supported by connecting walls extending from the ground to the floor, which is reasonably secure against unauthorized entry, provides complete visual screening or is behind fencing or other features providing complete visual screening, and which is accessible only through one of more lockable doors and is inaccessible to minors.

Licensee means the holder of any state issued license related to Commercial Cannabis Businesses, including, but not limited to, licenses issued under Division 10 of the Business & Professions Code.

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

Private residence means a house, an apartment unit, mobile home, or other similar dwelling unit.

Retail sale includes any transaction whereby, for any consideration, title to cannabis is transferred from one person to another at a fixed location, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same.

(Ord. No. 289, § 2, 10-24-2017)

A. The following types of regulatory Commercial Cannabis Business permits shall be issued: one retail sale; unlimited manufacturing; unlimited distribution; unlimited testing; and unlimited indoor commercial cultivation. Notwithstanding the foregoing, all Commercial Cannabis Businesses shall comply with the requirements of this Chapter including, without limitation, locational restrictions. The permits shall be issued on a first come, first serve basis. Existing Commercial Cannabis Businesses in good standing and currently operating in the City shall be given priority. All applications received in excess of the number of permits listed above shall be placed on a "waitlist." Once a permit becomes available the waitlisted applications will be reviewed in the order they were received.

B. All outdoor commercial cultivation is prohibited. No permit shall be issued for such activities.

C. Prior to initiating operations and as a continuing requisite to operating a Commercial Cannabis Business, persons wishing to operate a Commercial Cannabis Business shall obtain both a conditional use permit and business license from the City, and shall pay an application fee as established by resolution adopted by the City Council, as amended from time to time.

D. Transfer of Permit.

1. Permits issued under this chapter shall be specific to the location stated in the Commercial Cannabis Business permit application.

2. Permits issued under this chapter shall not be transferable without prior approval of the City Manager. The transferee must meet all the criteria for a permit pursuant to this chapter.

3. No permit issued under this chapter shall be transferable where the City Manager has notified the permit holder the permit has been or may be suspended or revoked.

4. Any attempt to transfer a permit in violation of the chapter shall be void, and the permit shall be deemed revoked.

(Ord. No. 289, § 2, 10-24-2017; Ord. No. 296, § 2, 3-26-2019)

A. It shall be unlawful for any person, association, partnership, or corporation to open or operate a Commercial Cannabis Business without possessing a Commercial Cannabis Business permit pursuant to this chapter, a City business license, a conditional use permit, and a permit from the State Bureau of Cannabis Control.

B. Commercial Cannabis Businesses may operate within the City of Del Rey Oaks only as expressly provided in this chapter.

1. Each Commercial Cannabis Business permit issued pursuant to this Chapter shall expire 12 months after the date of its issuance. No permit granted herein shall confer any vested right to any person or business for more than the above-referenced period.

2. An application for renewal of a Commercial Cannabis Business permit shall be filed at least 60 calendar days prior to the expiration date of the permit. The application shall be accompanied by a nonrefundable filing fee established by the City Council to defray the cost of review required by this section. An applicant shall be required to update the information contained in their previous permit application and provide any new and/or additional information as may be reasonably required by the City Manager.

3. An application for renewal of a Commercial Cannabis Business permit shall be rejected if any of the following exists:

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

b. The Commercial Cannabis Business permit is suspended or revoked at the time of the application.

c. The Commercial Cannabis Business has not been in regular and continuous operation in the four months prior to the renewal application.

d. The Commercial Cannabis Business fails to conform to the requirements of this chapter and any regulations adopted pursuant to this chapter.

e. The permittee fails to renew any license required by the state of California.

C. Prior to commencing operation, a Commercial Cannabis Business shall obtain a City business license, a conditional use permit, and comply with all applicable provisions and requirements of that license.

D. Prior to commencing operation, a Commercial Cannabis Business shall be subject to a mandatory building inspection and must obtain all required permits or approvals that would otherwise be required including, but not limited to, a building permit and Fire Department permit(s), as well as any planning permit required by Title 17 of the City of Del Rey Oaks Municipal Code.

E. Revocation, termination, or suspension of a license issued by the state of California, or any of its departments or divisions, shall immediately terminate the ability of a Commercial Cannabis Business to operate within the City until the state of California, or its respective department or division, reinstates or reissues the state license.

(Ord. No. 289, § 2, 10-24-2017)

An application for a regulatory permit shall include, but shall not be limited to, the following information:

A. The name, address, and telephone number of the applicant.

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

C. A legible copy of each applicant's photo identification, such as a state driver's license, a passport issued by the United States, or a permanent resident card.

D. A copy of the license or permit types held by the applicant that involve the operation of a Commercial Cannabis Business, including the date the license or permit was issued and the jurisdiction or State license authority that issued the license or permit.

E. Whether the applicant has been denied a license or permit by the City, any other jurisdiction, and/or the State that involves the operation of a Commercial Cannabis Business. The applicant shall provide a description of the license or permit applied for, the name of the jurisdiction or State license authority that reviewed the license or permit application, and the date of denial.

F. The proposed Commercial Cannabis Business' physical address, telephone number, website address, and email address.

G. Contact information for the applicant's designated primary contact person including the name, title, address, phone number, and email address of the individual.

H. A list of every fictitious business name the applicant is operating under including the address where the business is located.

I. Financial information including the following:

1. A list of funds belonging to the Commercial Cannabis Business held in savings, checking, or other accounts maintained by a financial institution. The applicant shall provide for each account: the financial institution's name, the financial institution's address, account type, account number, and the amount of funds in the account.

2. A list of loans made to the Commercial Cannabis Business. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender.

3. A list of investments made into the Commercial Cannabis Business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor.

J. A copy of the applicant's completed application for electronic fingerprint images submitted to the Department of Justice and Federal Bureau of Investigations.

K. A list of each applicant's misdemeanor and felony convictions, if any. For each conviction, the list must set forth the date of arrest, the offense charged, the offense convicted, the jurisdiction of the court, and whether the conviction was by verdict, plea of guilty, or plea of nolo contendre.

L. A complete and detailed diagram of the proposed premises showing the boundaries of the property and the proposed premises to be permitted, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways, storage areas and exterior lighting. The diagram must show the areas in which all commercial cannabis activity will take place, including but not limited to, limited-access areas.

M. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the premises. The security plan shall include provisions demonstrating compliance with Section 5.020.070.

N. An odor control plan.

O. A comprehensive business operations plan that includes the following:

1. Provisions demonstrating compliance with Section 5.020.060.

2. Plans for handling cash and transporting Cannabis and Cannabis Products to and from the premises. All information provided to the City pursuant to this subsection shall be confidential and shall not be disclosed, except as may otherwise be required by law.

3. A community relations plan designating a person as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted.

4. A neighborhood responsibility plan addressing any adverse impacts of the proposed Commercial Cannabis Business on the surrounding area.

5. A copy of the applicant's certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the Commercial Cannabis Business.

6. A copy of the applicant's most recent annual budget for operations.

P. The name and address of the owner and lessor of the real property upon which the Commercial Cannabis Business is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a Commercial Cannabis Business will be operated on his or her property.

Q. Authorization for the City Manager to seek verification of the information contained within the application.

R. A full and complete copy of the applicant's most current application submitted to and approved by the applicable State licensing authority.

S. Any such additional and further information as is deemed necessary by the City Manager to administer this chapter.

T. An acknowledgement that the applicant agrees City officials may enter the Commercial Cannabis Business' premises at any time during business hours for inspection and to review to ensure compliance with the provisions of this chapter.

U. An acknowledgement that the applicant agrees to indemnify, defend, and hold harmless the City, its officials, officers, agents, volunteers, and employees from any and all damages, claims, liabilities, costs including attorney fees, suits or other expenses resulting from and arising out of the Commercial Cannabis Business operation.

V. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

(Ord. No. 289, § 2, 10-24-2017)

In addition to those operating requirements specifically set forth elsewhere in this chapter, the following operating requirements shall apply to all Commercial Cannabis Businesses operating in the City.

A. Commercial Cannabis Businesses shall operate only within a Fully Enclosed and Secured Structure that is not accessible to minors.

B. Cannabis shall not be consumed on the premises of any Commercial Cannabis Business.

C. Commercial Cannabis Businesses shall not suffer or create nuisance issues such a dust, glare, heat, noise, smoke, odor, and shall not be hazardous to use or storage of materials, processes, products, or wastes.

D. No Cannabis or Cannabis Products or graphics depicting Cannabis or Cannabis Products shall be visible from the exterior of the property.

E. No outdoor storage of Cannabis or Cannabis Products is permitted at any time.

F. Reporting and Tracking of Product and of Gross Sales. Each Commercial Cannabis Business shall have a point-of-sale "seed to sale" or "track and trace" system to track and report all aspects of the Commercial Cannabis Business including, but not limited to, such matters as Cannabis tracking, whether the Cannabis is for medical or non-medical purposes, inventory data, and gross sales (by weight and by sale) and shall ensure that such information is compatible with the City's record-keeping systems. The system must have the capability to produce historical transactional data for review by the City. All information provided to the City pursuant to this subsection shall be confidential and shall not be disclosed, except as may otherwise be required by law.

G. A permittee shall provide the City with names and addresses of all of the following interested parties:

1. Persons with at least a ten percent interest in the Commercial Cannabis Business;

2. Partners, officers, directors, and stockholders of every corporation, limited liability company, or general or limited partnership that owns at least ten percent of the stock, capital, profits, voting rights, or membership interest of the Commercial Cannabis Business or that is one of the partners in the Commercial Cannabis Business.

The permittee shall notify the City of any change in the information above within 30 calendar days of the change.

All parties described above shall submit to fingerprinting and a criminal background check by the City.

H. Records. All Commercial Cannabis Businesses shall maintain the following records in printed or digital format for at least three years on the premises and shall produce them to the City within 24 hours after receipt of the City's request:

1. The name, address, and telephone numbers of the owner and landlord of the property.

2. The name, date of birth, address, and telephone number of each manager and staff of the Commercial Cannabis Business; the date each was hired; and the nature of each manager's and staff's participation in the business.

3. A written accounting of all income and expenditures of the Commercial Cannabis Businesses, including, but not limited to, cash and in-kind transactions.

4. A copy of the Commercial Cannabis Business' commercial general liability insurance policy and all other insurance policies related to the operation of the business.

5. A copy of the Commercial Cannabis Business' most recent year's financial statement and tax return.

6. An inventory record documenting the dates and amounts of Cannabis received at the premises, the daily amounts of Cannabis on the premises, and the daily amounts of Cannabis transported from the premises.

I. Building Standards. A building that houses a Commercial Cannabis Business activity shall comply with the following requirements:

1. Entrances. All entrances into the buildings on the premises shall be locked at all times with entry controlled by the permittee's managers and staff. Access shall be provided for fire protection personnel by a knox box or similar mechanism.

2. Main Entrance and Lobby. The premises shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a secure lobby to receive persons into the premises and to verify whether they are allowed in the building.

3. Activity Area. All manufacturing, dispensing, distribution, or testing areas in any building on the premises shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the permittee.

J. Signage and Notices.

1. Business identification signage for a Commercial Cannabis Business shall conform to the requirements of the City of Del Rey Oaks Municipal Code.

2. Signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No Commercial Cannabis Business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the Commercial Cannabis Business or elsewhere including, but not limited to, the public right-of-way.

3. No signs placed on the premises of a Commercial Cannabis Business shall obstruct any entrance or exit to the building or any window.

4. Each entrance to a Commercial Cannabis Business 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 Commercial Cannabis Business is prohibited.

5. Signage shall not be directly illuminated, internally or externally. No banners, flags or other prohibited signs may be used at any time.

K. Each Commercial Cannabis Business shall provide the Chief of Police with the name, telephone number (mobile preferred, if available) of an employee or owner to whom emergency notice can be provided.

L. Minors. Persons under the age of 18 years shall not be allowed on the premises of a Commercial Cannabis Business, unless they are medical marijuana patients accompanied by an appropriate caregiver.

M. Odor Control. A permittee shall comply with the odor control plan that is submitted during the application process and approved by the City Manager. Commercial Cannabis Business premises shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the building(s) that is distinctive to its operation is not detected outside the premises, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the Commercial Cannabis Business. As such, applicants must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or

2. An air system that creates negative air pressure between the Commercial Cannabis Business' interior and exterior so that the odors generated inside the Commercial Cannabis Business are not detectable outside the facility.

3. Should compliance with the odor control plan fail to properly control odor, the City Manager may impose additional or modified plan restrictions.

N. Background Check. Every person listed as an owner, manager, supervisor or employee of the Commercial Cannabis Business must submit fingerprints and other information deemed necessary by the Chief of Police or their designee for a background check by the City of Del Rey Oaks Police Department. No person shall be issued a permit to operate a Commercial Cannabis Business 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, shall be paid at the time the application for a Commercial Cannabis Permit is submitted. The applicant(s) shall provide an initial deposit in an amount the Chief of Police or his designee estimates will cover the cost of the background investigation, which shall be used and drawn upon as a retainer to cover the actual costs of such investigation. If this amount is not sufficient, the applicant shall provide additional amounts that are necessary and if the applicant is unable to provide the additional amounts necessary to complete the investigation, the investigation shall cease and shall not continue until such additional amounts are paid. Upon completion of the investigation or in the event the applicant withdraws their application, any unused amount will be refunded to the applicant within 30 days.

O. Loitering. The owner and/or operator of a Commercial Cannabis Business shall prohibit loitering by persons outside the facility both on and off the premises.

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

(Ord. No. 289, § 2, 10-24-2017)

A. Commercial Cannabis Businesses shall implement sufficient security measures to deter and to prevent unauthorized entrance into areas containing Cannabis or Cannabis Products. Except as may otherwise be determined by the Chief of Police, these security measures shall include, without limitation, all of the following:

1. Prohibiting individuals from remaining on the premises of the Commercial Cannabis Business if they are not engaging in the activity expressly related to the operations of the Commercial Cannabis Business.

2. Establishing limited access areas accessible only to authorized Commercial Cannabis Business personnel.

3. Storing all Cannabis and Cannabis Products in a secured and locked room, safe, or vault, and in a manner so as to prevent diversion, theft, and loss.

4. Security cameras shall be in use 24 hours per day, seven days per week. Cameras shall be of at least HD-quality and shall monitor all entrances and exits to and from the premises and to monitor all interior spaces within the Commercial Cannabis Business that are open and accessible to the public. The security surveillance cameras shall be remotely accessible to the City Police Department and shall be compatible with the City's software and hardware and remote real-time. Live access to the video footage from the cameras shall be provided to the City Police Department. Video recordings shall be maintained for a minimum of 45 days.

a. Commercial Cannabis Business operators shall maintain at least 30 concurrent days of digitally recorded documentation.

b. Any disruption in security camera images shall be cured expeditiously and in good faith.

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

d. Any panic or alarm buttons installed shall have audio and video feed to the alarm monitoring station and allow for real time video feed to police dispatch and mobile devices.

e. Having a professionally installed, maintained, and monitored alarm system, inspected and documented annually.

B. Any establishment engaged in retail sales of Cannabis or Cannabis Products shall have at least one uniformed security guard who is licensed and possesses a valid Department of Consumer Affairs security guard registration.

C. Any bars installed on the windows or the doors of the Commercial Cannabis Business shall be installed only on the interior of the building.

D. Security personnel hired by the Commercial Cannabis Business shall be subject to review by the Chief of Police.

E. Each Commercial Cannabis Business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. The burglary/robbery alarm system shall not be activated by a power failure. Each Business shall have a back-up power supply.

F. Each Commercial Cannabis Business shall identify a liaison to the City's Police Department who shall be reasonably available to meet with the Chief of Police or their designee regarding security measures and operational issues.

G. As part of the application and permitting process, each Commercial Cannabis Business shall have a transportation plan describing the procedures for safely and securely transporting Cannabis and Cannabis Products and currency.

H. A Commercial Cannabis Business shall notify the Chief of Police as soon as practicable, but no later than 24 hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the Chief of Police.

2. Diversion, theft, loss, or any criminal activity involving the Commercial Cannabis Business or any agent or employee of the Commercial Cannabis Business.

3. The loss or unauthorized alteration of records related to Cannabis, registering qualifying patients, primary caregivers, or employees or agents of the Commercial Cannabis Business.

4. Any other breach of security.

I. The Chief of Police is authorized to promulgate additional regulations necessary to implement the requirements and fulfill the policies of this chapter.

(Ord. No. 289, § 2, 10-24-2017)

A. Personal Use.

1. The use of Cannabis is prohibited on all City property, including parks.

2. Smoking of Cannabis is subject to all state and local regulations.

3. The smoking or use of Cannabis is prohibited within 1,000 feet of a school or childcare facility.

B. Cultivation for Personal Use.

1. No more than six Cannabis plants may be cultivated for personal use indoors at any one residence.

2. The use of volatile solvents, as defined in Section 11362.3d of the California Business and Professions Code, including but not limited to butane, propane, xylene, gasoline, kerosene, and other dangerous and poisonous toxins or carcinogens, are prohibited for indoor and outdoor cultivation at a private residence.

3. Indoor cultivation must have adequate ventilation. Structural, ventilation, electrical, gas, or plumbing changes to accommodate indoor cultivation must comply with all fire, building, health and safety codes.

4. Six or fewer Cannabis plants may be cultivated outdoors for personal use at any single family residence, regardless of the number of occupants. Outdoor cultivation is limited to rear and side yards, and must be screened by a solid material fence so as to not be visible from surrounding public streets or adjoining properties. No Cannabis plant shall exceed the height of a fence surrounding a property, and in no case shall grow to more than six feet. All fencing shall be in compliance with all zoning, planning, and building ordinances.

C. Commercial Cultivation.

1. Outdoor Commercial Cultivation is prohibited.

2. Indoor Commercial Cultivation must comply with all fire, building, health and safety codes.

(Ord. No. 289, § 2, 10-24-2017; Ord. No. 296, § 3, 3-26-2019)

No person, whether as principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this chapter. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this section, any condition caused or permitted to exist in violation of any of the provisions of this section is declared a public nuisance and may be abated as provided under the City of Del Rey Oaks Municipal Code or State Law.

(Ord. No. 289, § 2, 10-24-2017)

A. The issuance of a permit or license pursuant to this chapter may be denied, and an existing permit or license may be revoked or suspended, if the license holder or applicant:

1. Has knowingly made false statements in their application or in any reports or other supporting documents furnished by the applicant.

2. Has been convicted of any felony offense related to the use, sale, possession or transportation of narcotics or habit-forming drugs. Misdemeanor conviction related to the use, sale, possession or transportation of narcotics or habit-forming drugs will be reviewed on a case by case basis.

3. Failed to pay required taxes and business license fees.

4. Failure to maintain a valid State issued license from the Bureau of Cannabis Control.

5. Has failed to comply with the conditions imposed in the Conditional Use Permit.

6. Has violated any provision of this chapter.

B. Any revocation or denial of a business license application may be appealed to the City Council within 30 days of the revocation or denial.

(Ord. No. 289, § 2, 10-24-2017)

A. Any denial, suspension, or revocation of a Commercial Cannabis Business permit shall be communicated by the City Manager to an applicant in writing. The reasons for the denial, suspension, or revocation shall be stated.

B. An applicant who disagrees with the City Manager's determination shall have ten calendar days from the receipt of the City Manager's determination to appeal the matter to the City Council. The appeal shall be heard by the City Council not later than 45 days from its filing with the City Manager. No appeal shall be deemed to be filed unless a required fee, which shall be established by the City Council, is submitted to the City Manager with the notice of appeal.

(Ord. No. 289, § 2, 10-24-2017)