Chapter 120 — COMMERCIAL CANNABIS ESTABLISHMENTS

(A) It is the primary purpose and intent of this chapter to establish regulations on the use of cannabis and cannabis products to protect the city’s neighborhoods, residents, and businesses from negative impacts. It is a further purpose and intent of this chapter to regulate the cultivation, nursery, manufacturing, testing laboratories, transportation, delivery, distribution (includes storage) retailers, and microbusinesses of cannabis and cannabis-related products in a manner which is responsible and which protects the health, safety, and welfare of the residents of the city; to enforce rules and regulations consistent with state law. In part to meet these objectives, an annual permit shall be required to own and to operate a commercial cannabis business within the city as authorized under this chapter and within the City Development Code.

(B) Pursuant to § 7 of Article XI of the California Constitution, the city is authorized to adopt ordinances that establish standards, requirements, and regulations for local licenses and permits for commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, testing, laboratory operations, and safety, security, and worker protections established by the state, or any of its departments or divisions, shall be the minimum standards applicable in the city to commercial cannabis activity.

(Prior Code, § 4000.10) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018; Ord. 18-05, passed 5-21-2018)

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

ACCREDITING BODY. A non-profit organization that requires conformation to ISO/IEC 17025 requirements and is a signatory to the International Laboratory Accreditation Cooperative Mutual Recognition Arrangement for Testing. APPLICANT. An owner applying for or renewing a local commercial cannabis permit.

BRANDED MERCHANDISE. Clothing, hats, pencils, pens, keychains, mugs, water bottles, beverage glasses, notepads, lanyards, cannabis accessories, or other types of merchandise approved by the Bureau with the name or logo of a commercial cannabis business licensed pursuant to the Act. BRANDED MERCHANDISE does not include items containing cannabis or any items that are considered food as defined by Cal. Health and Safety Code § 109935. CANNABIS. All parts of the 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.

(1) CANNABIS also means the separated resin, whether crude or purified, obtained from marijuana.

(2) CANNABIS also means marijuana as defined by Cal. Health and Safety Code § 11018. CANNABIS does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacturing, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

(3) For the purpose of this chapter, CANNABIS does not mean industrial hemp as that term is defined in Cal. Health and Safety Code § 11018.5.

CANNABIS ACCESSORIES. As defined in Cal. Health and Safety Code § 11018.2, 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 CONCENTRATE. Manufactured cannabis that has undergone a process to concentrate the cannabinoid active ingredient, thereby increasing the product’s potency. An edible cannabis product is not considered food, as defined by Cal. Health and Safety Code § 109935, or a drug, as defined by the California Health and Safety Code § 109925.

CANNABIS CONSUMPTION BUSINESS PERMIT. An annual permit issued by the city to a permittee allowing for the consumption of cannabis and cannabis products in a designated consumption area located on a state and locally licensed type 10 (retail) or type 12 (microbusiness) premises.

CANNABIS CONSUMPTION PERMIT. A cannabis consumption business permit or a cannabis consumption special event permit.

CANNABIS CONSUMPTION SPECIAL EVENT PERMIT. A permit issued by the City Manager to a permittee or entity allowing for the consumption of cannabis or cannabis products during a special event, as defined in Chapter 118, or during any event in which a designated cannabis consumption area may be temporarily located on private property.

CANNABIS PRODUCT. Cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, edible, topical, or other product containing cannabis or concentrate cannabis and other ingredients. CERTIFICATE OF ACCREDITATION. A certificate issued by an accrediting body to a licensed testing laboratory, entity, or site to be registered in the state and permitted by the city.

COMMERCIAL CANNABIS ACTIVITY or COMMERCIAL CANNABIS USE. Includes cultivation, nursery, possession, manufacture (level one and two), processing, storing, laboratory testing, labeling, retailers and microbusinesses, including wholesale and retail sale of cannabis or a cannabis product, or an ancillary consumption area located on a retail or microbusiness premises, distribution, transportation, and approved licenses enumerated and defined within Cal. Business and Professions Code Division 10, Chapter 1 (commencing with § 26000), and ultimately issued a “A-Type” or “M-Type” license consistent with Cal. Business and Professions Code § 26050(b), as amended.

COMMERCIAL CANNABIS BUSINESS. Any business or operation which engages in commercial cannabis activity.

COMMERCIAL CANNABIS PERMIT or PERMIT. A permit issued by the city pursuant to this chapter to a commercial cannabis business that authorizes a person to conduct commercial cannabis activity within the city. CONSUMING or CONSUMPTION. Smoking, vaping, eating, drinking, chewing, applying topically, or otherwise ingesting.

CULTIVATION. Any activity involving the propagation, planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

CULTIVATION SITE. A facility where cannabis is propagated, planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities, that holds a valid state license pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA, being Cal. Business and Professions Code, Division 10, commencing with § 26000).

CUSTOMER. The same meaning set forth in Cal. Business and Professions Code § 26001, as may be amended from time to time.

DELIVERY.

(1) The commercial transfer of cannabis or cannabis products to a customer.

(2) DELIVERY also includes the use by a retailer of any technology platform owned and controlled by the retailer.

DESIGNATED CANNABIS CONSUMPTION AREA. A designated area on the premises of a cannabis retailer or microbusiness where customers may smoke or consume cannabis.

DESIGNATED CANNABIS CONSUMPTION AREA VENTILATION SYSTEM. A ventilation system capable of removing all detectable odors, smoke, and by-products of combustion.

DISPENSING. Any activity involving the retail sale of cannabis or cannabis products from a licensed retailer (state license type 10) or a microbusiness with a retail use (state license type 12).

DISTRIBUTION. The procurement, sale, and transport of cannabis or cannabis products between entities licensed pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act or as amended.

DISTRIBUTOR. A person licensed under the Medicinal and Adult-Use Cannabis Regulation and Safety Act to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed retailer or microbusiness.

DRIED FLOWER. All dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

EDIBLE CANNABIS PRODUCT. Manufactured cannabis that is intended to be used, in whole or in part, for human consumption. An EDIBLE CANNABIS PRODUCT is not considered food as defined by Cal. Health and Safety Code § 109935 or a drug as defined by Cal. Health and Safety Code § 109925.

FIREARM. Any device as defined in Cal. Penal Code § 16520, as may be amended from time to time. GOOD CAUSE. For purposes of refusing or denying an initial application for a commercial cannabis permit, for suspending or revoking a commercial cannabis permit, or for refusing or denying renewal or reinstatement of a permit, or for rating applicants for purposes of issuance of a permit means:

(1) The applicant has violated any of the terms, conditions, or provisions of this chapter, of state law, or any regulations and rules established pursuant to state law, any applicable rules and regulations, or any special terms or conditions placed upon its use permit, state license, or local permit;

(2) Failure to provide information required by the city;

(3) The permitted premises have been operated in a manner that adversely affects the public health, safety, or welfare or the safety of the immediate neighborhood in which the establishment is located;

(4) The applicant has knowingly made false or misleading statements, misrepresentations, or material omissions as part of an interview process, on an application form to request issuance of a permit or renewal form, or any other document submitted to the city;

(5) The commercial cannabis business is not created, organized, or operated in strict compliance with all applicable laws and regulations;

(6) The applicant fails to meet the requirements of this chapter, or the conditions of the use permit;

(7) The operation of the proposed commercial cannabis business at the proposed location is prohibited by a state or local law or regulation;

(8) The City Manager has found consistent with § 120.16 that the applicant’s criminal history reflects a conviction of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made and has found the applicant is not suitable for issuance of a permit;

(9) The applicant was found to have a felony or misdemeanor conviction involving fraud, deceit, embezzlement, dishonesty, violent behavior, moral turpitude, or has committed crimes serving as a basis for denial of a permit consistent with § 120.16. A conviction within the meaning of this section means a plea or a guilty verdict, a conviction, or diversion following a plea of nolo contendere or a conviction later expunged by the court;

(10) The applicant was found to have a felony or misdemeanor conviction for hiring, employing, or using a minor in transportation, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

(11) The applicant was found to have a felony or misdemeanor conviction for drug trafficking with enhancements pursuant to Cal. Health and Safety Code §§ 11370.4 or 11379.8.

(12) The applicant is employing or being financed in whole or in part by any person whose criminal history indicates that person would not be issued a permit consistent with § 120.16;

(13) The applicant, or his or her employees, fail to allow inspection of the business facilities, security recordings, activity logs, or business records of the permitted premises by city officials;

(14) The applicant’s business is owned by, or has an officer or director who is, a licensed physician making recommendations for medical cannabis;

(15) The applicant has had a local permit or state cannabis license revoked or has had more than one suspension on its local permit by the city;

(16) The applicant operated a commercial cannabis business in violation of § 120.16; or

(17) The applicant or the operator listed in the application is less than 21 years of age.

HOOP HOUSE. The use of a structure with structural members that are made of flexible and somewhat rigid construction materials, typically PVC pipe or similar material. The ends may be covered or left open and the material covering the structural members is readily removable and is typically removed and re-affixed frequently. GREENHOUSE. A structure with walls and roof made primarily of transparent material, such as glass, in which plants requiring regulated climatic conditions are grown.

INFUSE. A process by which cannabis, cannabinoids, or cannabis concentrates are directly incorporated into a consumable product or incorporated into a product formulation to produce a cannabis product.

INTOXICATED. Someone who is under the influence of alcohol or drug(s) as defined in Cal. Penal Code § 647(f) and as amended from time to time.

LICENSE. The issuing of a license by the state, or one of its departments or divisions, under the Medicinal and Adult-Use Cannabis Regulation and Safety Act to engage in commercial cannabis activity.

LIVE PLANTS. Living cannabis flowers and plants, including seeds, sprouts, immature plants (including unrooted clones), and vegetative stage plants.

MANUFACTURER. A person that conducts the production, preparation, propagation, or compounding of

manufactured cannabis, as defined in this section, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container, and that holds a valid state license pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act.

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

MANUFACTURING SITE. A location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a license by the state, or one of its departments or divisions, for these activities.

MEDICAL CANNABIS, MEDICAL CANNABIS PRODUCT, or CANNABIS PRODUCT. A product containing cannabis, including, but not limited to, concentrates and extractions, intended to be sold for use by medical cannabis patients in the state pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Cal. Health and Safety Code § 11362.5 (as the same may be amended from time to time). For purposes of this chapter, MEDICAL CANNABIS does not include industrial hemp as defined by Cal. Food and Agricultural Code § 81000 or Cal. Health and Safety Code § 11018.5.

MICROBUSINESS (STATE LICENSE TYPE 12).

(1) A use for the cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under state and local law, or any combination of at least three uses listed herein provided such licensee can demonstrate compliance with all requirements imposed by the Medicinal and AdultUse Cannabis Regulation and Safety Act on licensed cultivators, distributors, level 1 manufacturers, and retailers to the extent the licensee engages in such activities.

(2) A consumption area may be permitted as an ancillary use to the retailer in connection to the microbusiness on the same premises.

MIXED-LIGHT BUILDING. The cultivation of cannabis using light deprivation and/or artificial lighting below a rate of 25 watts per square foot.

MORAL TURPITUDE.

(1) Crimes are defined as acts of baseness, vileness, or depravity in the private and social duties, they are contrary to the accepted and customary rule of moral right and duty between people.

(2) Crimes involving MORAL TURPITUDE require the criminal intent of the offender to cause great bodily injury, defraud, deceive, deprive an owner of property, or to act in a lewd manner or recklessness. NURSERY. A licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

OWNER. Any of the following:

(1) Owner or owners of a proposed facility, including all persons or entities having ownership interest of 5% or more, other than a security interest, lien, or encumbrance on property that will be used by the facility.

(2) If the owner is an entity, OWNER includes within the entity each person participating in the direction, control, or management of, or having a financial interest, in the proposed facility.

(3) If the applicant is a publicly traded company, OWNER means the chief executive officer or any person or entity with an aggregate ownership interest of 5% or more.

(4) OWNER will also include any consultants, agents, or contractors hired for the purpose of assisting in the preparation and submittal of an application for a commercial cannabis permit or in the operations and management of a commercial cannabis business.

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

PERMITTEE. Any person or business to whom a cannabis regulatory permit is issued under this chapter and any authorized agent, employee, or designee of such person or business.

PREMISES. The same meaning set forth in Cal. Business and Professions Code § 26001, as may be amended from time to time.

PREPARING or PREPARATION. The heating, re-heating, or serving of cannabis products.

PROMOTIONAL MATERIALS. Any form, letter, circular, pamphlet, publication, or other written material directed to a customer or prospective customer to induce retail sales. PROMOTIONAL MATERIAL does not include permitted signs, displays, decorations, cannabis accessories, or cannabis goods furnished by a licensed cultivator, licensed manufacturer, licensed distributor, licensed microbusiness, or licensed cannabis event organizer to a retail licensee for advertising purposes. PROMOTIONAL MATERIALS shall have no intrinsic or secondary value.

RATING. A process wherein the City Council considers numerous applications for a commercial cannabis permit that are greater than the number of permits allocated or authorized by ordinance. The city will implement a process as established by Council wherein they rate the applicants based upon information submitted by the applicant, criminal history defined as a component of good cause, and oral interviews. The staff will rate the applicants and submit recommendations to the Council for consideration. The Council may use their sole discretion in using the information

ed by ordinance. The city will implement a process as established by Council wherein they rate the applicants based upon information submitted by the applicant, criminal history defined as a component of good cause, and oral interviews. The staff will rate the applicants and submit recommendations to the Council for consideration. The Council may use their sole discretion in using the information

submitted by the staff or other factors in considering issuance of permits when the applications are greater in number than the number of allowable permits by ordinance. Wherein a total number of commercial cannabis permits are established by ordinance, nothing in this section nor in the Grover Beach Municipal Code obligates the Council to issue the total number of authorized permits. The Council at their discretion may issue any number of permits up to the maximum number of permits authorized by ordinance.

RETAILER (STATE LICENSE TYPE 10). A use for the retail sale and delivery of cannabis or cannabis products to customers. This use is for operations within a fixed location and may consist of a facility open to the general public or may be for delivery only with a facility. A consumption area may be permitted as an ancillary use in connection with the retailer on the same premises.

SELF-SERVICE DISPLAY. The open display or storage of cannabis or cannabis products or accessories in a manner that is accessible to customers other than with the assistance of the cannabis retailer or an employee of the cannabis retailer. A vending machine, refrigerator, and storage cabinet are forms of SELF-SERVICE DISPLAYS .

SELL, SALE, AND TO SELL. The same meaning set forth in Cal. Business and Professions Code § 26001, as may be amended from time to time.

SMOKE or SMOKING. The same meaning set forth in Cal. Health and Safety Code § 11362.3, as may be amended from time to time.

STACKING. The practice of growing marijuana plants on platforms or tables and stacking them in multiple layers on top of each other.

STATE LICENSE or LICENSE. A state license issued pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act.

TESTING LABORATORY. A facility, entity, or site in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1) Holds a valid certificate of accreditation by an accrediting body that is independent from all other persons involved in the cannabis industry in the state; and

(2) Registered with the State Department of Public Health.

TOPICAL CANNABIS. A product intended for external use. A TOPICAL CANNABIS PRODUCT is not considered a drug as defined by Cal. Health and Safety Code § 109925.

TRANSPORT. The transfer of cannabis or cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by the Medicinal and Adult-Use Cannabis Regulation and Safety Act.

TRANSPORTER. A person issued a state license by the state, or one of its departments or divisions, to transport cannabis or cannabis products in an amount above a threshold determined by the state, or one of its departments or divisions that have been issued a state license pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act.

(Prior Code, § 4000.20) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018; Ord. 18-03, passed 3-19-2018; Ord. 18-05, passed 5-21-2018; Ord. 19-06, passed 7-15-2019; Ord. 22-05, passed 5-23-2022)

(A) Notwithstanding anything to the contrary contained in the city municipal code, commercial cannabis activity shall not be a permitted use in any zone of the city other than authorized in Chapter 4 of Article IX of the Grover Beach Municipal Code (see Development Code at http://www.grover.org/index.aspx?NID=309).

(B) (1) Notwithstanding division (A) above, this section shall not be intended to preclude or limit personal possession or use of six living marijuana plants and possession of the marijuana produced by the plants consistent with Cal. Health and Safety Code § 11362.1(a)(3). Moreover, in accordance with Cal. Health and Safety Code § 11362.2,

not more than six living plants may be planted, cultivated, harvested, dried, or processed within a single private residence, or upon the grounds of that private residence, at one time.

(2) The limitation of six living plants per residence is a maximum number of plants allowed at any residence no matter how many persons reside within that residence. No person owning, leasing, occupying, or having charge or possession of any premises within a residential zone or used for residential purposes shall cause, allow, or permit the indoor cultivation for personal use of cannabis on the premises, unless it is conducted in accordance with the following provisions.

(a) All cultivation of cannabis must take place within a single room of a residential structure or within a detached accessory building wherein the city has issued a building permit for construction of the building. No cultivation of cannabis shall be allowed within a garage of a residential structure, or within hoop houses constructed on a property.

(b) Indoor grow lighting system must not exceed 3,800 watts; be shielded to confine light and glare to the interior of the structure; and complies with the city’s Building and Fire Codes.

(c) Odors shall not be detectable from adjacent properties, residences, or public rights-of- way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, patios, balconies, or any other areas available for use by common tenants, or the visiting public, or within any other residential unit.

(d) Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no exterior evidence of cultivation occurring at the premises from a public right-of-way or from an adjacent parcel.

(e) The cannabis cultivation must not create offensive odors; create excessive dust, heat, noise, smoke, traffic, or other impacts that are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public; or be hazardous due to the use or storage of materials, processes, products, or wastes.

(f) Cannabis cultivation areas inside a residence must be kept locked when not occupied.

(Prior Code, § 4000.30) (Ord. 17-06, passed 5-15-2017; Ord. 18-05, passed 5-21-2018; Ord. 22-05, passed 5-23-2022)

(A) In addition to the requirements which may be imposed pursuant to this chapter, no person shall engage in commercial cannabis activity or open or operate a commercial cannabis business without possessing both a commercial cannabis permit issued by the City Manager and a license issued by the state or one of its departments or divisions. Commercial cannabis activity shall be permitted in the city only as expressly provided in this chapter and Chapter 152 and if not expressly permitted by this chapter and Chapter 152 shall be prohibited.

(1) An application for a commercial cannabis business permit shall be consistent with this chapter, section, and regulations adopted by Council.

(2) A commercial cannabis permit shall be issued pursuant to this chapter upon issuance of final building certificate of occupancy. The permittee shall be responsible for the prorated portion of fees owed consistent with the Master Fee Schedule within 30 days of issuance of final building occupancy.

(3) Commercial cannabis permits shall expire July 1 of each calendar year, unless otherwise defined on the permit.

(a) Existing permittees with valid permits expiring after July 1, 2022, shall pay prorated fees owed, consistent with the Master Fee Schedule at the time of permittee’s renewal date. The permit shall be valid from the date of renewal to July 1, 2023.

(4) In the event of an application for renewal of a commercial cannabis permit, it shall be filed prior to the expiration date of the permit with the City Manager, or his or her designee. The permit’s term will be extended until such time the city takes action.

(5) An application for renewal of a commercial cannabis permit shall be rejected if any of the following exists:

• (a) The commercial cannabis permit is suspended or revoked at the time of the application;

(b) The City Manager, based on substantial evidence, finds good cause to reject the permit;

(c) Any other commercial cannabis permit held by the applicant is suspended or revoked at the time of the application for the subject permit being considered by the city;

(d) The commercial cannabis business has not been in regular and continuous operation in the four months prior to the renewal application being received by the city;

(e) The commercial cannabis business fails to conform to the requirements of this chapter, any regulations adopted pursuant to this chapter, or the conditions imposed as part of any use permit or zoning requirements; and/or

(f) The permittee fails to renew its state license or the state license has been revoked or suspended.

(6) If a renewal application is rejected for reasons other than good cause, a person may file a new application pursuant to this chapter.

(B) Prior to commencing operation, a commercial cannabis business shall be subject to a mandatory building inspection and must obtain all required permits or approvals which would otherwise be required including, but not limited to, a commercial cannabis permit, building permit(s), and a valid use permit, required by the city municipal code.

(C) Revocation, termination, non-issuance, or suspension of a license issued by the state, or any of its departments or divisions, shall immediately terminate the ability of a cannabis business to operate within the city until the state, or its respective department or division, reinstates or issues the state license.

(D) Any person prior to possessing, planting, cultivating, harvesting, drying, or processing marijuana plants or possessing the marijuana produced from those plants consistent with Cal. Health and Safety Code § 11362.1(a)(3), shall contact the City Police Department and register consistent with the procedures established by the Department. There shall be a processing fee as established in the city’s Master Fee Schedule.

(Prior Code, § 4000.40) (Ord. 17-06, passed 5-15-2017; Ord. 18-03, passed 3-19-2018; Ord. 18-05, passed 5-21-2018; Ord. 19-06, passed 7-15-2019; Ord. 22-05, passed 5-23-2022)

The City Chief of Police, or his or her designee, is authorized to establish all regulations necessary to implement the requirements and fulfill the policies of this chapter related to commercial cannabis businesses, including, but not limited to, the following subjects:

(A) A permitted commercial cannabis business shall implement security measures to both deter and to prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the Chief of Police, or his or her designee, these security measures shall include, but shall not be limited to, all of the following:

(1) All public access to the facility must be through a secured single point of entry. Entry into a facility with a M- type state license from the outside must be completed through a secured vestibule area that is designed to allow for identification confirmation prior to entry into the main lobby area.

(2) Preventing persons 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.

(3) Establishing limited access areas accessible only to authorized commercial cannabis business personnel.

(4) (a) Except for live growing plants which are being cultivated at a cultivation facility, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault, except for limited amounts of cannabis used for display purposes or immediate sale at a retailer or microbusiness with a retail use.

(b) All cannabis and cannabis products, including live plants which are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.

(5) Self-service displays of cannabis, products containing cannabis, and cannabis infused food or drink are not allowed in any retail or consumption areas. Samples of cannabis or cannabis products may be made available to the customer by an employee of the cannabis retailer.

(6) (a) Installing 24-hour security surveillance cameras of at high definition (720P or greater) to monitor all entrances and exits to and from a secure area and to monitor all interior spaces within the commercial cannabis business which are open and accessible to the public.

(b) The security surveillance cameras shall be remotely accessible to the City Police Department and shall be compatible with the City Police Department’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.

• (c) Video recordings shall be maintained by the business for a minimum of 90 days.

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

• (8) Panic buttons shall be installed in all commercial cannabis businesses.

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

(10) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed on the interior or exterior of the building if allowed by the State Building Code and consistent with approved use permit.

(11) All security personnel, whether employed by the commercial cannabis business or contracted by the

commercial cannabis business, shall be subject to the prior review and approval of the Chief of Police, or his or her designee.

(12) Firearms are prohibited on the premises of all cannabis facilities. This provision does not apply to on-duty peace officers engaged in official duty. Armed security officers will only be permitted with the expressed written permission of the Chief of Police.

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

(14) All deliveries of cannabis products shall be made within a secured area as required in division (A)(4) above.

(B) Each commercial cannabis business shall identify a liaison to the City Police Department who shall be reasonably available to meet with the Chief of Police, or his or her designees, regarding security measures and operational issues.

(C) 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.

(D) A commercial cannabis business shall notify the Chief of Police, or his or her designee, within 24 hours after discovering any of the following:

(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations established by the Chief of Police, or his or her designee;

(2) Diversion, theft, loss, or any criminal activity or attempted 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, or employees or agents of the commercial cannabis business; and/or

(4) Any other breach of security.

(Prior Code, § 4000.50) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018; Ord. 18-05, passed 5-21-2018; Ord. 22-05, passed 5-23-2022)

(A) Cannabis consumption area. The following establishes operating standards for on-premises consumption areas. (1) No permittee shall allow the on-site consumption of cannabis or cannabis products in a manner inconsistent with this chapter, any permit condition(s) imposed by the city, or inconsistent with any rules, regulations, or guidelines promulgated by the Chief of Police, or his or her designee.

(2) Building permits shall be required for any interior or exterior modifications to existing buildings. At the time of building permit submittal, an updated security plan shall be required consistent with § 120.05. A certificate of occupancy and amended commercial cannabis permit shall be issued prior to operation of a consumption area.

(3) Consumption areas may be located inside an existing building or located outside in compliance with division (B)(1)(e) below and Cal. Business and Professions Code § 26200(g), as amended.

(4) Use of or consumption of cannabis or cannabis products brought into the designated cannabis consumption area that are not purchased from the retailer or microbusiness located on the premises is prohibited. The permittee must ensure that a customer does not bring cannabis or cannabis products onto the premises that have not been purchased from the retail or consumption establishment.

(5) (a) The permittees may establish a membership program that allows a customer to utilize a storage locker/humidor inside the designated cannabis consumption area to store cannabis and cannabis products on-site as long as the products were purchased from the permittee’s retail or microbusiness facility and were not previously removed from the premises.

(b) Each locker/humidor shall only be used to store cannabis and cannabis products for one customer at a time. The locker/humidor must be secured to prevent access by anyone else, other than business management, when not in use by the member.

(6) The designated cannabis consumption area shall be separate from, but reside within or be connected to the existing permitted cannabis retailer or microbusiness.

(7) (a) The designated cannabis consumption area shall not be directly accessible from the primary outside entrance to the cannabis retailer or microbusiness and may not be visible from the fronting street or store front.

(b) The only entrance to the designated cannabis consumption area must be from within the retail establishment. The exit from the consumption area must meet the same requirements as the exit from the retail establishment.

(8) The permittee is required to post the following signage:

(a) Identification of the designated cannabis consumption area shall consist of signage that is posted outside the designated consumption room entrance(s) and is at a minimum of 12 inches by 12 inches with a minimum lettering of one inch in height and states:

“Consumption Area - No One Under 21 Years of Age Allowed. We reserve the right to refuse entry or service for reasons including visible intoxication. It is against the law to drive while impaired. No Alcohol, Tobacco or Employee Consumption Allowed. Emergency Incident/Entry - All customers must cease cannabis consumption until emergency personnel have completed their services and left the cannabis business premises.”

(b) The permittee shall post signage of the phone numbers for local taxicab companies, ride share companies, or other public transportation options for the consumers use.

• (c) Additional signage as deemed necessary by the city may be required.

(9) Any employee or agent of the city, Five Cities Fire Authority, the County Public Health Agency, or the

Department of Cannabis Control may enter and inspect the premises of a permittee during business hours and without

notice.

(10) The permittee shall not authorize or allow the on-site sale, possession, or consumption of alcoholic beverages or tobacco products on the premises.

(11) No permittee shall authorize or allow the on-site consumption of cannabis or cannabis products outside of normal business operating hours, as such hours may be established by law, regulation, or required as a condition of the permit.

(12) No permittee shall consume cannabis or cannabis products while on duty or while working on the premises. (13) The designated cannabis consumption area will close to new consumers one hour prior to the close of the retail business. Consumption of cannabis and cannabis products on premises will cease 30 minutes prior to the close of the retail business.

(14) The permittees shall post one or more notices of sufficient size, lettering, and prominence to advise customers that the consumption of cannabis products outside of the designated cannabis consumption area is prohibited.

(15) Access to the area where the consumption of cannabis products is allowed shall be restricted to persons 21 years of age or older.

(16) Cannabis consumption shall not be visible from any public place, city right-of-way, or any nonage-restricted area on or near the premises.

(17) The permittees shall package and seal a customer’s unused cannabis or cannabis products in accordance with § 120.19 prior to the customer leaving the designated cannabis consumption area.

(18) The permittees shall attempt to make arrangements or partnerships with ridesharing services or other forms of public/private transportation to help impaired or intoxicated customers find safe transportation when needed. (19) A permittee shall comply with laws governing cannabis businesses and retail food establishments, including, but not limited to, the state’s Retail Food Code.

(20) A permittee with a cannabis consumption permit may not require employees to enter the designated cannabis smoking room as a condition of their employment. A permittee shall ensure that all designated cannabis consumption area employees are properly trained in the consumption area operations, policies, and procedures and can identify impairment in consumers or when a customer is consuming too much cannabis and may become impaired.

(21) The Chief of Police, or his or her designee, may immediately suspend a permittee’s permit to operate a designated cannabis consumption area for any violations of this chapter, local regulations, Department of Cannabis Control regulations, or state laws. If a suspension is issued, the permittee may request a meeting to take place with the Chief of Police, or his or her designee, within ten calendar days to review the reasons for the suspension and the steps for corrective action. If the permittee is unable to obtain a mutually agreeable determination of corrective actions with the Chief of Police, and the permit remains suspended, the permittee may file an appeal of the permit suspension with the City Manager consistent with the procedural process for conducting appeals contained within §§ 37.034 through 37.039(A).

(Prior Code, § 4000.51)

(B) Cannabis consumption building and construction standards.

(1) The following establishes ventilation standards for areas of a retailer or microbusiness that contains a designated consumption area.

(2) The designated cannabis consumption area that permits smoking of cannabis must meet the following ventilation standards:

(a) The designated cannabis consumption area must have a separate heating, ventilation, and air-conditioning (HVAC) system such that none of the air in the designated cannabis consumption area will be recirculated into other parts of the cannabis business premises.

(b) The air from the designated cannabis consumption area must be directly exhausted to the outdoors by a filtration system that, at a minimum, eliminates all odors and smoke.

(c) Smoke from the designated cannabis consumption area must not drift to other portions of the cannabis business premises.

(d) The designated cannabis consumption area must be completely separated from the remainder of the cannabis business premises by solid partitions or glazing without openings other than doors, and all doors leading to the designated cannabis consumption area must be self-closing. All doors must be installed with a gasket to provide a seal where the door meets the stop and the room shall remain under negative pressure in relation to the other spaces of the cannabis business premises.

(e) Cannabis consumption areas that are located outside shall meet the following performance standards.

1. An odor absorbing ventilation and exhaust system must be installed so that odor generated from the outdoor consumption area is not detected outside the property or lease area boundaries, or anywhere on adjacent property or public rights-of-way, or within any other unit located within the same building as the cannabis use.

2. Designated cannabis consumption area shall not be visible from the public right-of-way.

(f) The designated cannabis consumption area must meet health and safety standards as approved by the Chief of Police.

(Prior Code, § 4000.52)

(Ord. 22-05, passed 5-23-2022)

(A) Work permit required.

(1) Any person who is an employee or who otherwise works or volunteers within a commercial cannabis business must obtain a work permit from the Chief of Police, or his or her designee. The Chief of Police, or his or her designee, is hereby authorized to establish all regulations necessary to implement the work permit process contemplated in this section including, but not limited to, the reasons for denial of a work permit to any person. A work permit shall be valid for a 12-month period and must be renewed on an annual basis.

(2) Applications for work permits shall be submitted under oath and shall contain a statement of the past criminal record, if any, of the applicant and such information as may be deemed necessary by the Chief of Police, or his or her designee, to determine whether the applicant is a person to be issued a work permit. The applicant will be required to submit to live scan fingerprinting and a photograph for the purpose of the city performing a background investigation and issuance of a work permit. In the event a person changes employment from one commercial cannabis business within the city to another, the work permit holder shall notify the Chief of Police, or his or her designee(s), in writing of the change of employment within ten days of such change or the work permit shall be suspended or revoked and such person shall not be permitted to work within any commercial cannabis business within the city.

(B) Identification. Each person to whom a personal identification card is issued shall wear his or her card, issued by the city, at a prominent and readily-visible location on the outermost garment. Such identification card shall at all times be in good and readable condition. In the event a personal identification card is lost or stolen, the city shall be notified within 24 hours of when the person owning the card realized it was missing. The issuance of a personal identification card shall constitute for purposes of this section a work permit.

(C) Employee records. Each owner or operator of a commercial cannabis business shall maintain on-site a current register of all the employees currently employed by the commercial cannabis business and shall produce such register to the Chief of Police, or his or her designee, or any other city official authorized to enforce the city municipal code for purposes of determining compliance with this chapter.

(D) Fees. Each application for a work permit and renewal of an existing work permit shall be accompanied by a fee set by resolution of the City Council and shall be valid for a period of 12 months from the date of issuance, unless terminated, suspended, or revoked sooner. The fee is non-refundable and shall not be returned in the event the work permit is denied, revoked, or suspended.

(Prior Code, § 4000.60) (Ord. 17-06, passed 5-15-2017; Ord. 22-05, passed 5-23-2022)

(A) As a condition precedent to the city’s issuance of a commercial cannabis permit pursuant to this chapter, any person intending to open and to operate a commercial cannabis business shall provide evidence of the legal right to occupy and to use the proposed location.

(B) In the event the proposed location is leased from another person, the applicant for a permit under this chapter shall provide a signed and notarized statement from the owner of the property to demonstrate the property owner has acknowledged and has consented to the operation of a commercial cannabis business on the property.

(C) Evidence of lawful possession consists of properly executed grant deeds, leases, evidence of ownership of the premises, or other written documents acceptable to the City Manager.

(Prior Code, § 4000.70) (Ord. 17-06, passed 5-15-2017; Ord. 22-05, passed 5-23-2022)

Commercial cannabis businesses shall be required to comply with all zoning, land use, and development regulations applicable to the underlying zone in which they are permitted to establish and operate as set forth in Chapter 152. (Prior Code, § 4000.80) (Ord. 17-06, passed 5-15-2017)

No person shall cause or permit the sale or retail dispensing of alcoholic beverages on or about the premises of any commercial cannabis business. No commercial cannabis business may operate as a licensed retailer of alcohol. (Prior Code, § 4000.90) (Ord. 17-06, passed 5-15-2017) Penalty, see § 10.99

It is the stated intent of this chapter to regulate commercial cannabis activity in the city concurrently with the state. (Prior Code, § 4000.100) (Ord. 17-06, passed 5-15-2017)

(A) The Chief of Police, or his or her designee, and any other city official charged with enforcing the provisions of the city municipal code, or any provision thereof, may enter the location of a commercial cannabis business at any time during the hours of operation without notice and inspect the location of any commercial cannabis business as well as the recordings and records maintained pursuant to this chapter or the applicable provisions of state law.

(B) It is unlawful for any person having any responsibility over the operation of a commercial cannabis business to refuse to allow, impede, obstruct, or interfere with an inspection, or the review of the copying of records and monitoring (including recordings) including, but not limited to, the concealment, destruction, and falsification of any recordings or records.

(C) The Chief of Police, or his or her designee, or any other person charged with enforcing the provisions of this chapter may enter the location of a commercial cannabis business at any time during the hours of operation and

without notice to obtain samples of the cannabis to test for law enforcement and/or public safety purposes. Any samples obtained by the city shall be logged, recorded, and maintained in accordance with City Police Department standards for evidence. At all other times, the Chief of Police, or his or her designee, may enter the location of a commercial cannabis business to obtain samples of cannabis upon reasonable notice. (Prior Code, § 4000.120) (Ord. 17-06, passed 5-15-2017) Penalty, see § 10.99

(A) No person may commence or continue any commercial cannabis activity in the city without timely paying in full all fees and charges associated with the operation of a commercial cannabis activity. Fees and charges associated with the operation of a commercial cannabis activity shall be established by resolution of the City Council and contained within the city’s Master Fee Schedule.

(B) All commercial cannabis businesses operating pursuant to this chapter shall pay any and all applicable sales, use, business, or other taxes, and all license, registration, or other fees pursuant to federal, state, and local law. (Prior Code, § 4000.130) (Ord. 17-06, passed 5-15-2017)

(A) Each and every violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance. (B) (1) Each and every violation of this chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the city municipal code. Additionally, as a nuisance per se, any violation of this chapter shall be subject to injunctive relief, any permit issued pursuant to this chapter being deemed null and void, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity.

(2) 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 commercial cannabis activity or persons related thereto, or associated with, the commercial cannabis activity.

(3) Additionally, when the Chief of Police, or his or her designee, determines there is an imminent threat to public health, safety, or welfare, the commercial cannabis permit, issued by the city pursuant to this chapter, shall immediately become suspended pending an administrative hearing pursuant to §§ 37.030 through 37.040.

(C) Notwithstanding an initial verification of compliance by the commercial cannabis activity with the provisions of this chapter, any commercial cannabis business later found to be in violation of any of the requirements of this chapter at any time is subject to the enforcement provisions provided in this section.

(D) The remedies provided herein are not to be construed as exclusive remedies and in the event of a violation the city may pursue any proceedings or remedies otherwise provided by law. (Prior Code, § 4000.140) (Ord. 17-06, passed 5-15-2017)

To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to having issued a commercial cannabis permit pursuant to this chapter or otherwise approving the operation of any commercial cannabis business pursuant to this chapter. As a condition of approval of any commercial cannabis permit issued pursuant to this chapter, the person to which a commercial cannabis permit is issued shall be required to meet all of the following conditions:

(A) Execute an agreement indemnifying, defending (at its sole cost and expense), and holding the city and its officers, employees, attorneys, representatives, and agents harmless from any and all claims, losses, damages, injuries,

or liabilities associated with the permitting or approving the operation of a commercial cannabis activity or the operation thereof or associated with the commercial cannabis business or its members’ violation of any federal, state, or local laws.

(B) Maintain insurance at coverages, limits, and with conditions thereon determined necessary by the City Attorney and the city’s Administrative Services Director.

(C) Reimburse the city for any and all costs and expenses, including attorney fees and costs 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 a commercial cannabis permit pursuant to this chapter or the city approval of the operation of a commercial cannabis activity. The city may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the obligations imposed under this section.

(Prior Code, § 4000.150) (Ord. 17-06, passed 5-15-2017)

In addition to those requirements set forth in this section and elsewhere in this chapter, the City Council may by resolution or ordinance adopt such forms, fees, and procedures as are necessary to implement this chapter with respect to the initial selection, future selection, investigation process, renewal, rating of applicants, revocation, and suspension of commercial cannabis permits.

(A) For purposes of suspension or revocation, the Chief of Police may suspend or revoke a commercial cannabis permit for good cause consistent with the provisions of this chapter. In the event a commercial cannabis permit is either suspended or revoked, an appeal may be requested consistent with § 120.06.

(B) An application for issuance or renewal of a commercial cannabis permit shall contain the following requirements:

(1) The printed full name, signature, date of birth, and present address and telephone number of all persons and entities responsible for the operation of the commercial cannabis business including managers, corporate officers, investors, any person with an ownership interest, any member of a board of directors, any general or limited partner, and/or any member of a decision-making body for the commercial cannabis business;

(2) The address to which correspondence from the city is to be sent;

(3) The names and addresses of all businesses operated by and the employment of the applicant(s) for the five years immediately preceding the date of the application;

(4) Any litigation in which the applicant(s) has been involved within the five years immediately preceding the date of the application and a statement of whether any business currently operated by the applicant(s) or operated by the applicant(s) within the five years immediately preceding the date of the application has been investigated or the permit or license authorizing the operation of such business has been revoked or suspended within the five years immediately preceding the date of the application;

(5) The address of any commercial cannabis business currently being operated by the applicant(s), or any of them, or which have been previously operated by them within the last five years;

(6) The names and telephone numbers of the person(s) to be regularly engaged in the operation of the proposed commercial cannabis business, whether an employee, volunteer, or contractor. The application shall also have the names and telephone numbers of those persons having management and supervisory responsibilities for the proposed commercial cannabis business;

(7) Odor control devices and techniques to prevent odors from marijuana from being detectable off-site;

(8) Procedures for identifying, managing, and disposing of contaminated, adulterated, deteriorated, or excess cannabis product;

(9) Procedures for inventory control to prevent diversion of cannabis and cannabis product, employee screening, storage of cannabis and cannabis product, personnel policies, and recordkeeping procedures;

(10) A detail of the procedures to be utilized at the facility including a description of how chemicals and fertilizers will be stored, handled, used, and disposed of; manufacturing methods, the transportation process, inventory procedures, and quality control procedures;

(11) A site plan and floor plan of the commercial cannabis business denoting the property lines and the layout of all areas of the commercial cannabis business including storage, cultivation, manufacturing, testing, distributing, reception/waiting, and all ancillary support spaces, and the relationship of the facility to adjacent properties and land uses;

(12) An operations and security plan in conformance with § 120.05;

(13) Standard operating procedures detailing how operations will comply with state and local regulations, how safety and quality of products will be ensured, recordkeeping procedures for financing, testing, and adverse event recording, and product recall procedures;

(14) Proposed hours of operation;

(15) Recycling and waste disposal information;

(16) Medical recommendation verification and youth access restriction procedures;

(17) 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; and

(18) Detailed description of energy and water usage plan enumerating best practices and leading industry practices in efficient utilization of both resources.

(C) The City Manager may deny an application for the issuance, or renewal of a commercial cannabis permit for good cause or if the applicant has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the City Manager determines that the applicant is otherwise suitable to be issued a permit and granting the permit would not compromise public safety, the City Manager may conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a license based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the City Manager will include, but not be limited to, the following:

(1) A felony or misdemeanor conviction for the illegal use, possession, distribution, manufacture, transportation, cultivation, or similar activity related to a controlled substance as defined in the Federal Controlled Substances Act, being 21 U.S.C. Ch. 13, commencing with § 801.

(2) A violent felony conviction, as specified in Cal. Penal Code § 667.5(c).

(3) A serious felony conviction, as specified in Cal. Penal Code § 1192.7(c).

(D) The Chief of Police, or his or her designee, shall review each application to determine whether it contains all the required information. If the application does not contain all of the required information, it shall be returned to the applicant for completion. The Chief of Police, or his or her designee, will endeavor to conclude their review within 30 days of the filing of the application. If additional time is necessary, the Chief of Police, or his or her designee, will advise the applicant of an estimated review time.

(E) In reviewing an application for a permit pursuant to this chapter or in reviewing the proposed commercial cannabis business, the Chief of Police, or his or her designee, may request whatever additional information is deemed necessary to carry out the purposes of this chapter.

(F) The City Manager shall have the authority to either grant or deny the application consistent with this chapter for a commercial cannabis permit when a use permit has been issued in accordance with Chapter 152. The City Manager,

when approving a commercial cannabis permit, may place any additional limitations and conditions on the operation of a commercial cannabis business the City Manager deems necessary, consistent with the public interest and with this chapter.

(G) When a permit is approved or denied, the City Manager shall prepare and file a statement of decision giving the reasons for the approval or denial and the findings of fact upon which the decision is based. The City Clerk shall mail a copy of the statement of decision to the applicant upon filing and shall post the statement of decision on the city’s website. In the event the City Manager shall review and approve or deny the permit, the applicant or any aggrieved person may within ten days of the mailing of written notice of the filing of the statement of decision or posting of the statement of decision, whichever is later, appeal the decision to the City Council. All appeals shall be in writing and submitted to the City Clerk. An appeal fee must accompany the written appeal in an amount as indicated in the Master Fee Schedule.

(Prior Code, § 4000.160) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018; Ord. 18-05, passed 5-212018; Ord. 19-06, passed 7-15-2019; Ord. 22-05, passed 5-23-2022)

(A) Subject to the Health Insurance Portability and Accountability Act of 1996, being 42 U.S.C. 201, et seq., (HIPAA) regulations, each commercial cannabis business shall allow city officials to have access to the commercial cannabis business’s books, records, accounts, and any and all data relevant to its permitted activities for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data will be produced no later than 24 hours after receipt of the city’s request or within a reasonable time as authorized in writing by the city.

(B) Each commercial cannabis business shall file with the Chief of Police, or his or her designee, an audit of its financial operations for the previous year of operation, complete and certified by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. Each owner and/or operator of a commercial cannabis business shall annually file the audit of its financial operations on the anniversary of the first day of its operations after the initial issuance of a commercial cannabis permit. The audit shall include, but not be limited to, a discussion, analysis, and verification of each of the records required to be maintained pursuant to this chapter. The information contained in the audit shall be made available in standard electronic format which shall be compatible with Microsoft Office programs and software and which can easily be imported into either Excel, Access, or any other contemporary software designated by the Chief of Police.

(C) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing, and distribution processes until sold or distributed. (D) (1) Each owner and/or operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of all employees currently employed by the commercial cannabis business and shall disclose such register to any city official upon request.

(2) All records required by this chapter shall be maintained by the commercial cannabis business for a period of not less than seven years and shall otherwise keep accurate records of all commercial cannabis business activity and provide such records for inspection consistent with state law and any additional rules established by state licensing authorities or the City Council by resolution or ordinance.

(Prior Code, § 4000.170) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018)

(A) No person shall operate a commercial cannabis business under a commercial cannabis permit issued pursuant to this chapter at any place or location other than that identified on the permit.

(B) No person shall transfer ownership or control of a commercial cannabis permit issued pursuant to this chapter unless and until that person first obtains the consent of the City Manager, or his or her designee, and the proposed transferee submits all required application materials and pays all applicable fees and charges and independently meets the requirements of this chapter such as to be entitled to the issuance of an original commercial cannabis permit pursuant to this chapter.

(C) Any attempt to transfer or any transfer of a commercial cannabis permit issued pursuant to this chapter is hereby declared void and the commercial cannabis permit deemed immediately revoked and no longer of any force or effect.

(D) The Chief of Police, or his or her designee(s), shall be notified within five calendar days when an employee terminates employment with a licensee and the employee identification badge shall be surrendered to the Police Department at this time.

(Prior Code, § 4000.180) (Ord. 17-06, passed 5-15-2017) Penalty, see § 10.99

Prior to the sale or the delivery of any edible cannabis or edible cannabis product the same shall be labeled and in tamper-evident packaging which at least meets the requirements of Cal. Business and Professions Code §§ 26120 et seq. and similar state statutes, as the same may be amended from time to time or superseded or replaced by subsequent state legislation or by any department or division of the state. The City Council may impose additional packaging and labeling requirements on cannabis or cannabis products by resolution.

(Prior Code, § 4000.190) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018)

In addition to those operating requirements specifically set forth elsewhere in this chapter and except as may otherwise be expressly set forth in this chapter, the following operating requirements shall apply to all commercial cannabis businesses operating in the city.

(A) Cannabis shall not be consumed on the premises of any commercial cannabis businesses, with the exception of licensed retailer or microbusiness with an approved cannabis consumption area permit consistent with § 120.06. (B) No cannabis or cannabis products shall be visible from the exterior of the property or building. No outdoor storage of cannabis or cannabis products is permitted at any time.

(C) Each commercial cannabis business shall have in place a point-of-sale tracking system to track and to report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale) and shall ensure that such information is compatible with the city’s recordkeeping systems. The system must have the capability to produce historical transactional data for review by the city. All information provided to the city pursuant to this division (C) shall be confidential and shall not be disclosed, except as may otherwise be required under law.

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

(E) In addition to cannabis goods, a licensed retailer may display and sell cannabis accessories and the licensee’s branded merchandise inside their retail space. The licensee may provide promotional materials to customers or prospective customers. The licensee shall not sell branded merchandise until receiving written approval from the Department of Cannabis Control and the city. Other non-cannabis goods such as pre-packaged water and food may be sold and served in designated consumption areas.

(F) Each commercial cannabis business shall provide the City Chief of Police, or his or her designee, with the name and telephone number (mobile preferred, if available) of an on-site employee or owner to whom emergency notice can

be provided.

(G) (1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of Chapter 152, including, but not limited to, an issuance of a city sign permit.

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

(3) 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.

(H) (1) Persons under the age of 21 years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to purchase any cannabis or cannabis concentrate products, except anyone under 21 years of age but at least 18 years of age or older shall only be allowed within a commercial cannabis business if the business holds a state issued M-Type license and entry is authorized in accordance with the Medicinal and Adult Use Cannabis Regulation and Safety Act.

(2) It shall be unlawful and a violation of this chapter for any person to employ any other person at a commercial cannabis business who is not at least 21 years of age.

(3) The entrance to the commercial cannabis business 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 commercial cannabis business unless the commercial cannabis business is a M-Type license issued by the state wherein it shall be posted that no person under the age of 18 is permitted to enter upon the premises. Persons 18, but under 21, must be in possession of a valid medical marijuana identification card or valid doctor’s recommendation.

(I) Odor control devices and techniques shall be incorporated in all commercial cannabis businesses and apply to personal growth, cultivation, or processing of marijuana, to the extent necessary, to ensure that odors from marijuana are not detectable offsite. Commercial cannabis businesses shall provide an odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business 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 commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment or any other equipment which the Chief of Police, or his or her 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; (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 on the outside of the commercial cannabis business; and

(3) Air filtration and odor control systems shall be certified annually by a licensed mechanical engineer as part of the annual commercial cannabis permit renewal.

(J) The original copy of the permit issued by the city pursuant to this chapter shall be posted inside the commercial cannabis business in a location readily-visible to the public.

(K) (1) Pursuant to Cal. Penal Code §§ 11105(b)(11) and 13300(b)(11), which authorizes city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, or volunteer, of the commercial cannabis business must submit fingerprints and other information deemed necessary by the Chief of Police, or his or her designee(s), for a

background check by the City Police Department. Pursuant to Cal. Penal Code §§ 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a commercial cannabis business or a related work permit unless they have first cleared the background check, as determined by the Chief of Police, as required by this section.

(2) 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 commercial cannabis business permit is submitted. If this amount is not sufficient, the applicant shall provide additional amounts that are necessary and if the applicant is unable to provide the additional amounts necessary to complete the investigation, the investigation shall cease and shall not continue until such additional amounts are paid. Upon completion of the investigation or in the event the applicant withdraws their application, any fees paid for this process will be deemed non-refundable.

(L) The owner and/or operator of a commercial cannabis business shall prevent persons from remaining on the premises of the facility or business if they are not engaged in activity expressly related to the operations of the business.

(M) 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 zone in which such commercial cannabis business intends to establish and to operate.

(N) Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within 100 feet of the commercial cannabis business as measured from the property line.

business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide the above information to all businesses and residences located within 100 feet of the commercial cannabis business as measured from the property line.

(O) All deliveries of cannabis products shall be conducted in a secured delivery environment as outlined in division (A)(4) above. Deliveries of non-cannabis products may be conducted in normal shipping and receiving areas. (Prior Code, § 4000.200) (Ord. 17-06, passed 5-15-2017; Ord. 18-03, passed 3-19-2018; Ord. 18-05, passed 5-212018; Ord. 19-06, passed 7-15-2019; Ord. 22-05, passed 5-23-2022) Penalty, see § 10.99

(A) Any person issued a permit pursuant to this chapter must follow all pesticide use requirements of local, state, and federal law. The city may inspect the commercial cannabis business at any time during business hours to ensure compliance with this section.

(B) All weighing devices must be maintained in compliance with local, state, or federal law and comply with applicable regulations regarding device registration with the Agricultural Commissioner.

(C) Any person issued a permit pursuant to this chapter must follow all local, state, and federal requirements for solid waste and hazardous waste disposal. The city may inspect the commercial cannabis business at any time during business hours to ensure compliance with this section.

(D) In no case shall any hazardous, flammable, or explosive substances be used to process or manufacture cannabis products on site other than approved by this chapter. The city may inspect the commercial cannabis business at any time during business hours to ensure compliance with this section.

(E) Stacking shall be allowed in a given structure but only to the point that measuring the total canopy of each level of stacking is cumulatively no greater than the maximum canopy size allowed under state licensing. (Prior Code, § 4000.210) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018)

(A) All outdoor cultivation and nursery activity is prohibited. The use of greenhouses will be prohibited in all zones of the city.

(B) In no case shall cannabis plants be visible from a public or private road, sidewalk, park, or any common public viewing area.

(C) If a parcel or lot includes cultivation or nursery activities, the parcel or lot may have only one cultivation license or nursery license located on the parcel or lot and the cultivation and nursery activity must be permitted pursuant to this chapter and state law.

(D) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage, or inadvertent damage from pests, rodents, or other wildlife.

(E) In no case shall any hazardous, flammable, or explosive substances be used to process or manufacture cannabis products on-site unless approved by resolution of the City Council.

(F) The cultivation of cannabis and any nursery activity shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife, and to ensure the security of the cannabis being cultivated.

(G) All applicants for a cannabis cultivation or nursery permit shall submit the following in addition to the information generally otherwise required for a commercial cannabis business:

(1) An operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the nursery or cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting;

• (2) A description of a legal water source, irrigation plan, and projected water use plan;

(3) Identification of the source of electrical power and plan for compliance with applicable building codes and related codes;

(4) Energy efficient lighting systems shall be used;

(5) (a) Mixed light buildings shall include in the Operations Plan the hours that grow lights will be operational.

(b) No grow lights shall be operational between the hours of dusk and dawn unless it can be demonstrated that there is no light visible through the roof and windows of grow areas.

(6) The use shall operate in compliance with the approved Water Recycling Management Plan at all times. (Prior Code, § 4000.220) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018; Ord. 18-03, passed 3-192018; Ord. 18-05, passed 5-21-2018)

(A) The manufacturing of food or other products infused with or which otherwise contain cannabis shall be manufactured within the appropriate zones as defined in Chapter 152.

(B) The following is subject to the regulations set forth in this section and subject to whatever additional regulations may be established hereunder by an ordinance or resolution of the City Council or otherwise pursuant to this chapter.

(1) No edible cannabis products shall be sold or distributed on a retail basis at a commercial cannabis business operating unless operating under a permit issued pursuant to this chapter and consistent with a license issued by the

state.

(2) All items to be sold or distributed retail shall be individually wrapped at the original point of preparation. Labeling must include any labeling requirements as required under state licensing and any pertinent state licensing requirements for cannabis products.

(3) Any edible cannabis product that is made to resemble a typical food product must be in a properly labeled opaque (non-see-through) package before it leaves the commercial cannabis business. Deliveries must be in a properly labeled opaque package when delivered.

(Prior Code, § 4000.230) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018; Ord. 18-03, passed 3-192018; Ord. 18-05, passed 5-21-2018)

(A) Cannabis manufacturing facilities requiring a type-6 state license (using non-volatile solvents) or type-7 state license (using volatile solvents) shall be subject to the operational requirements determined and approved by the Council.

(B) The Council shall establish operational requirements by resolution.

(Prior Code, § 4000.240) (Ord. 17-06, passed 5-15-2017; Ord. 17-10, passed 1-18-2018; Ord. 18-03, passed 3-192018; Ord. 18-05, passed 5-21-2018)

(A) The City Council, or its designee, is authorized to establish all regulations necessary to implement the requirements and fulfill the policies of this chapter related to cannabis and cannabis products.

• (B) Regulations shall be published on the city’s website.

(C) Regulations promulgated by the City Council, or its designee, shall have the same force and effect of law and become effective upon date of approval.

(Prior Code, § 4000.250) (Ord. 17-06, passed 5-15-2017)

The amount of any fee, cost, or charge imposed pursuant to this chapter shall be deemed a debt to the city that is recoverable in any court of competent jurisdiction.

(Prior Code, § 4000.260) (Ord. 17-06, passed 5-15-2017)

The person to whom a permit is issued pursuant to this chapter shall be responsible for all violations of the laws of the state or of the regulations and the ordinances of the city, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permit holder’s presence.

(Prior Code, § 4000.270) (Ord. 17-06, passed 5-15-2017)

(A) A permit for a temporary cannabis special event, or temporary cannabis consumption special event, may be issued by the City Manager to a permittee or entity allowing for the sale of cannabis, consumption of cannabis

products, or a combination of both during a special event, as defined in Chapter 118. A designated cannabis consumption area during a special event, may be temporarily located on private property.

(B) A cannabis special event permit shall only be issued for a single day or up to two consecutive days. A permittee or entity shall only be issued a cannabis special event permit for up to four days annually.

(C) A cannabis special event shall not be hosted on the property of the city or city right-of-way; any school, childcare establishment, alcohol or drug treatment facility, any cannabis business that is not a licensed retail or microbusiness, or any location that is situated in a residential zone as defined in Chapter 152.

(D) The permittee or entity desiring to host a cannabis special event must be a State Department of Cannabis Control licensed cannabis event organizer.

(E) An application for a cannabis special event permit must be received by the Chief of Police no less than 90 days prior to the first scheduled day of the temporary cannabis event.

(F) The Chief of Police, or his or her designee, shall have full discretion and responsibility for directing the permittee, entity, or event organizers on the establishment of security measures and practices to ensure public safety.

(G) All security officers assigned to work at the cannabis consumption special event must be a state licensed security officer and be in possession of a guard card issued by the State Bureau of Security and Investigative Services (BSIS).

(H) An event security plan shall be included in the application for a cannabis consumption special event. The security plan shall minimally include:

• (1) Contact information for the security team leaders;

• (2) Emergency contact information for the event organizer;

• (3) Emergency contact information for every vendor at the event;

• (4) A site plan that identifies all ingress/egress locations, secured storage areas, medical areas, and incident

command management area;

(5) The security plan shall be reviewed and approved by the Chief of Police, or his or her designee, a minimum of ten days prior to the start of the event. Any changes to the plan shall be coordinated with the City Police Department; and

(6) The Chief of Police, or his or her designee, may require implementation of additional security measures based on the special event characteristics.

(I) The Fire Chief, or his or her designee, shall have full discretion and responsibility for directing the permittee, entity, or event organizers on the establishment of any health or medical responsibilities and practices for the event.

(J) A permittee, entity or event organizer shall comply with all regulations of the city municipal code, state laws, and Department of Cannabis Control Regulations.

(K) The Chief of Police, Fire Chief, or their designees, shall have the ability to revoke a cannabis consumption special event permit when in their opinion the event presents a nuisance or danger to public safety and well-being.

(L) Only persons, aged 21 or older, with valid identification, may attend a cannabis special event. A licensed cannabis event organizer shall maintain a clearly legible sign not less than 12 inches by 12 inches in size, reading “No Persons Under 21 Allowed” at each public entrance to any area where the sale or consumption of cannabis or cannabis products is allowed.

(M) The permittee, entity, or event organizer shall ensure that cannabis consumption is not visible from any public place or non-age restricted area.

(N) Sale, possession, or consumption of alcohol or tobacco shall not be allowed on the permitted premises.

(O) The consumption of cannabis or cannabis products brought from outside the permitted premises and not authorized by the vendors or event organizers is prohibited.

(Prior Code, § 4000.53) (Ord. 22-05, passed 5-23-2022) Penalty, see § 10.99

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

(Prior Code, § 4000.110) (Ord. 17-06, passed 5-15-2017)