Lemoore Municipal Code Ch. 8 Cannabis

It is the purpose and intent of this chapter to promote the health, safety, morals, and general welfare of the residents and businesses within the City by regulating the cultivation, processing, extraction, manufacturing, testing, distribution, transportation, sale, and consumption of cannabis, whether for medical purposes or recreational use. This chapter does not authorize conduct or acts that violate Federal law and does not protect any person from arrest or prosecution under Federal law. Persons engaged in cannabis activities assume any and all risk and any and all liability that may arise or result under State and Federal laws. (Ord. 2019-03, 7-2-2019)

For purposes of this chapter, unless otherwise specified, the following definitions shall apply:

ACT: Means the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA"), California Business and Professions Code section 26000 et seq., including implementing regulations, as the Act and implementing regulations may be amended from time to time. Definitions in this section incorporating provisions of the Act shall also include amendments to the Act and implementing regulations.

APPLICANT: Means a person who is required to file an application for a regulatory permit or employee permit under this chapter.

BUSINESS OWNER OR OWNER: Means the owner(s) of a commercial cannabis operation and includes the following:

A. A person with an aggregate ownership interest of ten percent (10%) or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

B. The chief executive officer, president, and vice president of a nonprofit or other corporate entity.

C. A member of the board of directors of a nonprofit entity.

D. All general partners and managing partners of a partnership.

CANNABIS: Shall be as defined in the Act. "Cannabis" and "marijuana" may be used interchangeably, but shall have the same meaning.

CANNABIS DISPENSARY OR DISPENSARY: Shall mean any facility or location, whether fixed or mobile, and any building or structure, where cannabis is made available to, distributed by, or distributed to more than two (2) persons.

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, cannabidiol (CBD), or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

COLLECTIVE OR COOPERATIVE CULTIVATION: Means the association within California of qualified patients, persons with valid identification cards, and designated primary caregivers to cultivate cannabis for medical purposes as may be allowed under State law.

COMMERCIAL CANNABIS OPERATION: Means any commercial cannabis activity, and all facilities and equipment that support that activity, as set forth in the Act.

COMMERCIAL CANNABIS REGULATORY PERMIT OR REGULATORY PERMIT: Means the permit required under this chapter to operate a commercial cannabis operation within the City of Lemoore.

CULTIVATE OR CULTIVATION: Shall be as defined in the Act and shall also include nurseries and the storage of one or more cannabis plants or any part thereof in any location.

DELIVERY: Means the commercial transfer of medical or recreational use cannabis and cannabis products from a dispensary to a customer as well as the use of any technology platform that enables persons, whether qualified patients, caregivers, or recreational users, to arrange for or facilitate the transfer.

DISTRIBUTION: Shall be as defined in the Act and includes the procurement, sale, and transport of cannabis and cannabis products between licensees.

EMPLOYEE PERMIT: Means the permit required under this chapter for every employee or independent contractor working at a commercial cannabis operation or involved in transportation/delivery-related services for a commercial cannabis operation.

LICENSED SMOKING LOUNGE: Means those facilities licensed pursuant to section 26050 of the Business and Professions Code, or a licensed retailer with a specified consumption cafe/lounge designation, pursuant to section 26070 of the Business and Professions Code.

MANUFACTURE: Shall be as defined in the Act and includes means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

MEDICAL CANNABIS OR MEDICAL CANNABIS USE: Means the use of cannabis for the purposes set forth in the Compassionate Use Act and the Medical Marijuana Program Act, California Health and Safety Code sections 11362.5 and 11362.7 et seq.

NURSERY: Shall be as defined in the Act.

OPERATOR: Means the business owner and any other person designated by the business owner as responsible for the day-to- day commercial cannabis operation.

ORDINANCE: Means the ordinance enacting this chapter, which may be commonly referred to as the City's "Cannabis Ordinance".

POLICE CHIEF: Means the Police Chief of the City of Lemoore or his or her designee.

PREMISES OR PROPERTY OWNER: Means the fee owner(s) of the premises where commercial cannabis operations are occurring.

PREMISES OR SITE: Means the actual building(s), and/or designated units/suites, as well as any accessory structures, parking areas, or other immediate surroundings, and includes the entire parcel of property used by the business owner in connection with the commercial cannabis operation.

PRIMARY CAREGIVER: Shall have the same definition as set forth in California Health and Safety Code sections 11362.5 and 11362.7, et seq.

PROJECT DEVELOPMENT AGREEMENT: Shall be as set forth in section 4-8-4 of this chapter.

QUALIFIED PATIENT: Shall have the same definition as set forth in California Health and Safety Code sections 11362.5 and 11362.7, et seq.

RECREATIONAL CANNABIS, RECREATIONAL CANNABIS USE, OR ADULT USE CANNABIS: Means cannabis not included within the definition of medical cannabis use.

RESPONSIBLE PARTY: Means the business owner, operator, manager(s), and any employee having significant control over the commercial cannabis operations.

SMOKING LOUNGE: Means a licensed premises where cannabis may be purchased (for on-site consumption only) and consumed by persons twenty one (21) years of age and over. A cannabis consumption area must be limited to one of the following uses: a) consumption of cannabis by smoking, vaping, and ingesting edible products; b) consumption of cannabis edible products by ingestion only.

SPECIAL CANNABIS EVENT: Means those temporary events held on premises within the City at which cannabis and/or cannabis products are sold and/or consumed under a temporary use permit pursuant to section 9-2B-4 of this Code.

SPECIAL CANNABIS EVENT ORGANIZER: Means any person who organizes a special cannabis event within the City. (Ord. 2019-03, 7-2-2019)

To the extent that the City is required to allow the cultivation and consumption of personal use cannabis, whether for medical or recreational use, under State law, the rules set forth herein shall apply, subject to the limits set forth in any applicable State law.

A. Cultivation: An individual that has a right to cultivate marijuana for personal use shall be allowed to cultivate cannabis within his/her private residence, in an attached garage, or in an accessory building if the property is detached single-family residential. No outdoor cultivation is allowed within the City. Cannabis cultivation for personal use shall be subject to the following requirements:

1. Area: The cannabis cultivation area shall not exceed thirty two (32) square feet measured by the canopy and not exceed ten feet (10') in height per residence. This limit applies regardless of the number of individuals residing in the residence. The cultivation area shall be a single designated area.

2. Lighting: Cannabis cultivation lighting shall not exceed a total of twelve hundred watts (1,200 W).

3. Building Code Requirements: Any alterations or additions to the residence, including garages and accessory buildings, shall be subject to applicable Building and Fire Codes, including Plumbing and Electrical, and all applicable Zoning Codes, including lot coverage, setback, height requirements, and parking requirements.

4. Gas Products: The use of gas products (CO2, butane, etc.) for marijuana cultivation or processing is prohibited.

5. Evidence Of Cultivation: From a public right-of-way, there shall be no exterior evidence of cannabis cultivation occurring on the site.

6. Residence: The qualified individual shall reside in the residence where the cannabis cultivation occurs.

7. Cultivation Elsewhere In City: The qualified individual shall not participate in cannabis cultivation in any other location within the City of Lemoore.

8. Incidental Use: The residence shall maintain kitchen, bathrooms, and primary bedrooms for their intended use and not be used primarily for cannabis cultivation.

9. Ventilation: The cannabis cultivation area shall include a ventilation and filtration system designed to ensure that odors from the cultivation are not detectable beyond the residence, or property line for detached single-family residential, and designed to prevent mold and moisture and otherwise protect the health and safety of persons residing in the residence and cultivating the marijuana. This shall include at a minimum, a system meeting the requirements of the current, adopted edition of the California Building Code section 1203.4 natural ventilation or section 402.3 mechanical ventilation (or their equivalent(s)).

10. Storage Of Chemicals: Any chemicals used for cannabis cultivation shall be stored outside of the habitable areas of the residence and outside of public view from neighboring properties and public rights-of-way.

11. Nuisance: The cannabis cultivation area shall not: a) adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts, and b) not be hazardous due to the use or storage of materials, processes, products or wastes, or from other actions related to the cultivation.

12. Property Owner Authorization: For rental property, the lessee shall obtain written authorization from the property owner or property management company to cultivate cannabis.

13. Notification: The owner and any lessee of the residence upon which cultivation will occur shall inform the Police Department of the intent to cultivate cannabis and shall acquire from the Police Department a handout setting forth the owner and lessee responsibilities under this section. This notification shall be provided prior to the commencement of the cultivation, except that for existing cultivation, the information shall be provided within ten (10) days of the effective date of this chapter. The Police Department may direct the owner and lessee to the Department of Planning and Development Services for more information about Building Code and permit requirements that may be applicable if alterations or additions to the residence are contemplated. The Police Department and Department of Planning and Development Services shall keep patient information confidential to the extent required by law.

14. Additional Requirements For Garages And Accessory Buildings: The following additional requirements shall apply for personal use cultivation that occurs in a garage or accessory building. The garage or accessory building shall be secure, locked, and fully enclosed, with a ceiling, roof or top, and entirely opaque. The garage or building shall include a burglar alarm monitored by an alarm company or private security company. The garage or building, including all walls, doors, and the roof, shall be constructed with a firewall assembly of green board meeting the minimum Building Code requirements for residential structures and include material strong enough to prevent entry except through an open door.

15. Collective Or Cooperative Cultivation: The collective or cooperative cultivation of cannabis shall be prohibited in the City except to the extent the cultivation is considered a commercial cannabis operation subject to a regulatory permit under this chapter.

B. Consumption: No person shall smoke, ingest, or otherwise consume cannabis or cannabis products in the City unless such smoking, ingesting or consumption occurs entirely within a private residence or a licensed smoking lounge.

"Within a private residence" shall mean inside habitable areas and shall not include garages, whether attached or detached, and other accessory buildings unless those buildings are at all times fully enclosed during the consumption.

All consumption shall be done in a manner so as to not cause a nuisance to nearby residents and businesses with noxious odors or other adverse health and safety impacts and shall be in accordance with applicable law including, but not limited to, section 11362.3 of the Health and Safety Code. (Ord. 2019-03, 7-2-2019)

A. Permitted Uses And Zoning: Business owners meeting the requirements of this section shall be allowed to conduct the following commercial cannabis operations in the zones designated:

1. Cultivation - Light Industrial (ML), Heavy Industrial (MH) and Neighborhood Commercial (NC) Zones.

2. Manufacturing - Light Industrial (ML) and Heavy Industrial (MH) Zones; Professional Office (PO), subject to a conditional use permit.

3. Testing - Light Industrial (ML) and Heavy Industrial (MH) Zones.

4. Distribution - Light Industrial (ML) and Heavy Industrial (MH) Zones.

5. Dispensaries - Downtown Mixed Use, Core (DMX-1), Downtown Mixed Use, Auto Oriented (DMX-2), Mixed Use (MU), Neighborhood Commercial (NC), Regional Commercial (RC), and Light Industrial (ML) Zones.

6. Deliveries - As allowed by this chapter or State laws.

B. Regulatory Permit And Project Development Agreement: No person or entity shall operate a commercial cannabis operation within the City of Lemoore without first obtaining a regulatory permit and entering into a Project Development Agreement as set forth in this chapter. The commercial cannabis operation shall at all times be in compliance with this section and any other applicable sections of this chapter, as they may be amended from time to time or repealed and replaced by another section governing the commercial cannabis operation, or State or Federal law.

Other than for deliveries as defined herein, the regulatory permit shall be site-specific and shall specifically identify the commercial cannabis activity that will be allowed at that site. No commercial cannabis activity will be allowed unless specifically identified in the regulatory permit. A fifty percent (50%) or more changing of the ownership interest of any business owner shall require the business owner to seek a new regulatory permit. The issuance of a regulatory permit shall be at the discretion of the City Council.

C. Minimum Operational Requirements And Restrictions For All Commercial Cannabis Operations: The following operational requirements and restrictions shall apply to all commercial cannabis operations:

1. The Act And Other State Laws: Commercial cannabis operations shall at all times be in compliance with State law and the implementing regulations, as they may be amended from time to time, as well as all required State license(s). The operator shall obtain all required State licenses prior to opening for business.

2. Register Of Employees: The operator shall maintain a current register of the names of persons required to have employee permits. The register shall be made available to the Police Chief at all times immediately upon request.

3. Signage: There shall be no signage or markings on the premises or off-site that in any way evidences that commercial cannabis operations are occurring on the property. Interior building signage is permissible provided the signage is not visible outside of the building.

4. Cannabis Consumption: No cannabis or cannabis product shall be smoked, ingested or otherwise consumed on the premises. Prominent signage of this prohibition shall be displayed throughout the facility.

5. Alcoholic Beverages: No commercial cannabis operation shall hold or maintain a retail license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or to operate a business that sells alcoholic beverages. In addition, alcohol for personal consumption shall not be provided, stored, kept, located, sold, dispensed, or used on the premises.

6. Transportation: Transportation shall only be conducted as permitted by State law.

7. Deliveries: There shall be no deliveries of cannabis or cannabis-containing products from the premises, except to another state or locally licensed or permitted cannabis business. Deliveries are expressly allowed as set forth in subsection E of this section.

8. Non-Commercial Cannabis Activity: No non-commercial or recreational cannabis activity shall occur on the premises except as allowed by section 4-8-8 of this chapter.

9. Retail Sales: The retail sale of cannabis is only allowed as set forth in subsection B of this section and other related provisions of this chapter.

10. Public Access: There shall be no public access to the premises except as allowed for dispensaries approved under this chapter.

11. Minors: It shall be unlawful for any operator to employ or allow any person who is not at least twenty one (21) years of age on the premises of a commercial cannabis operation.

12. Distance Separation From Schools, Daycare Centers and Youth Centers: A commercial cannabis operation shall not be located within six hundred feet (600'), or a distance otherwise approved by the City Police Chief, from any existing school, daycare center or youth center as defined by state law. Measurements shall be from property boundary to property boundary. For purposes of this section, "school" means any public or private school providing instruction in kindergarten or grades 1-12, inclusive, but does not include any private school in which education is primarily conducted in private homes.

13. Hours Of Operation: Commercial cannabis operations shall be allowed to operate per the requirements of the underlying zone district and subject to the City's Noise and Nuisance Ordinances.

14. Building And Related Codes: The commercial cannabis operation shall be subject to the following requirements:

a. The premises in which the commercial cannabis operations occur shall comply with all applicable local, State, and Federal laws, rules, and regulations including, but not limited to, Building Codes and the Americans With Disabilities Act. The operator shall obtain all required building permits and comply with all applicable City standards.

b. The responsible party shall ensure that the premises have sufficient electrical load for the commercial cannabis operations.

c. To the extent permitted by State law, butane and other flammable materials are permitted to be used for extraction and processing provided the operator complies with all applicable Fire and Building Codes, and any other laws and regulations relating to the use of those products, to ensure the safety of that operation. The Lemoore Fire Department, or other qualified agency retained by the City, shall inspect and approve the premises for use of the products prior to City's issuance of a certificate of occupancy, or otherwise prior to opening for business, to ensure compliance with this requirement. Such inspection shall be at the business owner's expense.

d. The operator shall comply with all laws and regulations pertaining to use of commercial kitchen facilities for the commercial cannabis operations.

e. The operator shall comply with all environmental laws and regulations pertaining to the commercial cannabis operations, including the storage, use and disposal of water and pesticides, and shall otherwise use best practices to avoid environmental harm.

15. Odor Control: The business owner shall provide an odor- absorbing ventilation and exhaust system, so that odor generated inside the facility that is distinctive to its commercial cannabis operations is not detected outside the premises, outside the building housing the commercial cannabis operations, or anywhere on adjacent property or public rights-of-way. Accordingly, the business owner must install and maintain the following equipment or any other equipment which the City's building official determines has the same or better effectiveness:

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

b. An air system that creates negative air pressure between the cannabis facility's interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.

16. Consumable Products: Commercial cannabis operations that manufacture products in the form of food or other comestibles shall obtain and maintain all appropriate approvals from the State and County Departments of Public Health for the provision of food or other comestibles, unless otherwise governed by State law and licensed by the State.

17. Secure Building: All commercial cannabis operations shall occur entirely inside of a building or temporary greenhouse that shall be secure, locked, and fully enclosed, with a ceiling, roof or top, and entirely opaque except that a temporary greenhouse may be constructed of all non-opaque materials as set forth in the regulatory permit and Project Development Agreement. Notwithstanding the foregoing, the roof may be of solid non- opaque material, provided other security measures exist to ensure that the commercial cannabis operation cannot be seen, heard or smelled beyond the property line. The building shall include a burglar alarm monitored by an alarm company or private security company. The building or temporary greenhouse, including all walls, doors, and the roof, shall be of solid construction meeting the minimum Building Code requirements for industrial structures (including, without limitation, commercial greenhouse structures). The precise building construction parameters and materials to be used shall be identified and provided with the application to the City prior to construction.

18. Premises Security: The following security conditions shall apply:

a. Alarm system (including perimeter, fire and panic).

b. Remote monitoring of alarm systems.

c. Perimeter lighting systems (motion sensor) for after-hours security.

d. Perimeter security and lighting as approved by the Police Chief.

e. Use of drive gates with card key access or similar to access the facility.

f. Entrance areas to be locked at all times, and under the control of a designated responsible party.

g. Use of access-control systems to limit access to inventory, grow and processing areas.

h. Exterior and interior camera systems approved by the Police Chief. The camera systems shall meet the minimum requirements of State law, include interior monitoring of all access points to the site from the interior, and be of a minimum five (5) mega- pixel resolution.

i. All security systems at the site are attached to an uninterruptable power supply providing 24-hour power.

j. 24-hour security patrols by a recognized security company licensed by the California Department of Consumer Affairs or otherwise acceptable to the Police Chief. All current contact information regarding the security company shall be provided to the Police Chief.

k. Lemoore Police Department or department designee shall have access to all security systems.

l. Internet protocol ("IP") access for remote monitoring of security cameras by the Lemoore Police Department or a department designee upon request.

m. Any and all video or audio tape recordings made for security purposes shall be marked with the date and time made and shall be kept, in an unaltered state, for a period of at least thirty (30) days and must be made available to the Lemoore Police Department or department designee for duplication upon demand. In addition, upon request by the Lemoore Police Department, the responsible party shall duplicate the records for the Lemoore Police Department or the department designee.

n. Hardened bullet-resistant windows for exterior windows as part of any new or existing construction.

o. Accounting software systems need to be in place to provide audit trails of both product and cash, where applicable.

p. Electronic track-and-trace systems for cannabis products as required by State law and regulations.

q. The City may inspect the premises and audit the records of the commercial cannabis operations for compliance on a quarterly basis, or in the event of a suspected violation with twenty four (24) hours' notice or as allowed by a court order or search warrant.

r. Security protocols and equipment need to be in place to protect computer information.

s. The foregoing premises security requirements shall be approved by the Police Chief prior to commencing operations. The Police Chief may supplement these security requirements once operations begin, subject to review by the City Council if requested by the business owner.

19. Shipments Of Supplies And Transportation Of Product: The following rules apply to deliveries, shipments and transportation:

a. Shipments of supplies to the premises shall only occur as provided for in diagram and floor plans on file with the City as part of the application process. Vehicles delivering to the premises shall not have any markings indicating that deliveries are being made to a commercial cannabis operation.

b. The transportation of cannabis samples and/or products to and from the premises shall be in unmarked vehicles with no indication that the vehicles are transporting cannabis samples and/or products. The responsible party shall stagger transportation times, vary routes from the facility, and take other security measures as requested by the Police Chief.

20. Premises Maintenance: The business owner, operator, and all responsible parties shall continually maintain the premises and its infrastructure so that it is visually attractive and not dangerous to the health, safety, and general welfare of employees, patrons, surrounding properties, and the general public. The premises or commercial cannabis operation shall not be maintained in a manner that causes a public or private nuisance.

21. Location Of Uses: Except for deliveries as defined in section 4-8-2 of this chapter, the commercial cannabis operation permitted by this section shall only be allowed in the locations designated on the diagram and floor plans of the premises submitted with the application for a regulatory permit. Other than for deliveries as defined in this chapter, commercial cannabis operations shall not operate at any location other than as stated in the regulatory permit. The City may allow "special cannabis events" as defined in this chapter without a regulatory permit but will instead require a temporary use permit pursuant to section 9-2B-4 of this Code.

D. Dispensaries: No more than one cannabis dispensary may be permitted for every 12,000 residents of the City.

E. Deliveries: Once a dispensary opens in the City, the delivery of cannabis is allowed within the City of Lemoore only from dispensaries operating in the City that have obtained the required regulatory permit and entered into the required Project Development Agreement. Notwithstanding the foregoing, any State licensed or permitted commercial cannabis operator that delivers within the City of Lemoore boundaries from a business outside of the City shall be obligated to collect and remit to the City of Lemoore any and all taxes and fees that apply to City of Lemoore dispensaries, of whatever kind, that are legally effective at the time of the delivery. The taxes and fees shall be remitted within thirty (30) days of the transaction. A failure to timely remit the fees and taxes shall be a separate violation from the unlawful delivery of cannabis into the City.

F. Project Development Agreement:

1. Purpose: The purposes of a Project Development Agreement are as follows: a) to allow the City Council to select the desired business owner and operator to ensure that the business owner and operator will conform to community norms; b) to determine the precise type of commercial cannabis operation and whether the operation will be limited to medicinal cannabis; c) to allow the precise project details, including building design and elevations, to be negotiated with the City to ensure compatibility with the surrounding area; and d) to guarantee that the City will receive the revenue raising fee set forth in this chapter.

2. Form: The Project Development Agreement shall be in a form approved by the City Attorney. Depending on the relationship between the premises owner and business owner, the City Council may require that the commercial cannabis operator be selected through an RFP process or by negotiation. City staff shall develop guidelines for the selection of an operator and a checklist for the terms to be included in the Project Development Agreement. Those documents shall be made available to the public.

3. Approval: The Project Development Agreement shall be negotiated at the staff level and processed concurrently with the regulatory permit, as further set forth in this chapter. (Ord. 2019-03, 7-2-2019; amd. Ord. 2020-08, 9-1-2020; Ord. 2021-01, 3-16-2021)

A. Application: Applications for regulatory permits shall be filed by the proposed business owner(s) with the Police Chief and include the information set forth herein. The Police Chief may request such information he or she deems necessary to determine who the applicant is. The applicant shall certify under penalty of perjury that all of the information contained in the application is true and correct. The application shall contain the following items for the business owner, operator and all responsible parties known at the time (if different than the business owner), and any other party designated below, to the extent the same shall apply:

1. The full name, present address, and telephone number, including such information for the premises owner.

• 2. Date of birth.
• 3. Tax identification number.
• 4. The address to which notices relating to the application are to be mailed.
• 5. Previous addresses for the five (5) years immediately preceding the present.
• 6. The height, weight, color of eyes and hair.

7. Photographs for identification purposes (photographs shall be taken by the Police Department).

8. All business, occupation, or employment for the five (5) years immediately preceding the date of submittal of the application form.

9. The cannabis operation business history, including whether the business owner and responsible parties while previously operating in this or another city, county or state has had a marijuana related license revoked or suspended, the reason therefor, and the business or activity or occupation subsequent to such action of suspension or revocation.

10. Complete property ownership and lease details, where applicable. If the business owner is not the premises owner, the application form must be accompanied with a notarized acknowledgment from the premises owner that cannabis operations will occur on its property.

11. A descriptive business plan for the cannabis operation, including a detailed list of all cannabis operations proposed to occur on the premises.

12. A diagram and floor plan of the entire premises, denoting all the use of areas proposed for cannabis operations, including, but not necessarily limited to, cultivation, processing, manufacturing, testing, transportation, deliveries, and storage. The diagram and floor plan need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches (±6").

13. The name or names of the operator. The operator shall designate one or more responsible parties, one of which shall at all times be available as a point of contact for the City, twenty four (24) hours per day. The contact information and schedule of the operator and responsible parties shall be provided to the Police Chief and updated within twenty four (24) hours of any changes.

14. The proposed security arrangements for insuring the safety of persons and to protect the premises from theft.

15. An accurate straight-line drawing prepared within thirty (30) days prior to the application depicting the building and the portion thereof to be occupied by the marijuana operation and the property line of any school as set forth in the operational requirements.

16. Authorization for the City, its agents and employees to seek verification of the information submitted.

B. Improper Or Incomplete Application: If the applicant has completed the application improperly, or if the application is incomplete, the Police Chief shall, within thirty (30) days of receipt of the original application, notify the applicant of such fact.

C. Changes In Information: Except as may otherwise be provided, the information provided in this subsection shall be updated to the Police Chief upon any change within ten (10) days.

D. Other Permits Or Licenses: The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement of obtaining a regulatory permit. (Ord. 2019-03, 7-2-2019)

A. Permit Required: Every employee or independent contractor working at a commercial marijuana operation or involved in transportation/delivery related services for a marijuana operation shall obtain an employee permit. It shall be the duty of the operator to ensure that employee permits are obtained from the Police Department prior to the employee or independent contractor commencing work. Persons who are listed as a business owner on a regulatory permit shall not be required to obtain an employee permit if such person also serves as an employee or contractor. All responsible parties, except the business owner, shall be required to obtain an employee permit.

B. Application: Each employee and independent contractor shall be required to provide the following information under penalty of perjury, so that the Police Department can perform a background check:

• 1. Name, current resident address, and telephone number.
• 2. Date of birth.
• 3. Tax identification number.
• 4. Height, weight, color of eyes, and hair.

5. Photographs for identification purposes (photographs shall be taken by the Police Department).

6. Be fingerprinted by the Police Department.

7. Such other identification and information as deemed necessary by the Police Chief and pertinent to the employee permit.

8. Authorization for the City, its agents and employees to seek verification of the information contained within the application.

9. The name of the business owner holding the regulatory permit and the operator for which such person is proposed to work. (Ord. 2019-03, 7-2-2019)

A. Application Fees: Every application for a regulatory permit, employee permit, or renewal shall be accompanied by a nonrefundable fee, as established by resolution of City Council. This fee shall be in addition to any other business license fee or permit fee imposed by this Code or other governmental agencies. The fee shall include an amount to cover the costs of fingerprinting, photographing, background checks as well as general review and processing of the application.

B. Investigation:

1. Upon the filing of a properly completed application and the payment of the fee, the Police Chief shall conduct an investigation of the application, including a background check of the applicant and all employees and independent contractors. All applicants for a regulatory permit and employee permit shall be required to submit to a fingerprint-based criminal history records check conducted by the Lemoore Police Department.

2. For regulatory permits, after the background checks and investigation are complete, and in no case later than ninety (90) days after receipt of a properly completed application, the Police Chief shall issue a recommendation that the City Council approve or deny a regulatory permit in accordance with the provisions of this section. The recommendation for approval shall include conditions the Police Chief deems reasonable under the circumstances to protect the public health, safety, and welfare of the community. The recommendation shall be forwarded to the City Council for action following any required noticing and public hearings, and may be processed concurrently with any other entitlements necessary for the cannabis operation.

3. For employee permits, after the background checks and investigation are complete, and in no case later than thirty (30) days after receipt of a properly completed application, the Police Chief shall either approve or deny an employee permit. At the discretion of the Police Chief, employee permits may be conditionally approved pending the background investigation.

C. Term Of Permits And Renewals:

1. Regulatory Permits: Provided the business owner is current on all fees and taxes set forth in this chapter and in the Project Development Agreement, regulatory permits issued under this chapter shall remain in effect until revoked, one year following the date of issuance, or as outlined in the Project Development Agreement, whichever occurs first. Applications for renewal shall be made at least forty five (45) days prior to the expiration date of the permit and shall be accompanied by the nonrefundable fee referenced in this section. When made less than forty five (45) days before the expiration date, the expiration of the permit will not be stayed. Applications for renewal shall be acted on similar to applications for permits except that the Police Chief shall renew annual permits for additional one year periods if the circumstances and information provided with the initial application have not materially changed.

2. Employee Permits: Employee permits issued under this chapter shall expire one year following the date of issuance. Applications for renewal shall be made at least forty five (45) days prior to the expiration date of the permit and shall be accompanied by the nonrefundable fee referenced in this section. When made less than forty five (45) days before the expiration date, the expiration of the permit will not be stayed. Applications for renewal shall be acted on similar to applications for permits except that the Police Chief shall renew annual permits for additional one year periods if the circumstances and information provided with the initial application have not materially changed.

D. Grounds For Denial Of Regulatory Permit: Regulatory permits are issued at the discretion of the City Council in conjunction with a Project Development Agreement with the applicant. No regulatory permit will be considered by the City Council until a draft Project Development Agreement has been completed. The City Council will generally consider as grounds for denial of a regulatory permit the same reasons that are grounds for denial of a conditional use permit. The City Council will also consider the prior cannabis business history, both within and outside of California, and criminal background of the applicant. No regulatory permit shall be issued if the applicant cannot demonstrate that it can fully comply with this chapter.

E. Grounds For Denial Of Employee Permit: The grounds for denial of an employee permit shall be one or more of the following:

1. The applicant has been issued a local or State permit related to cannabis operations at any other location in California, or another state, and that permit was suspended or revoked, or the applicant has had disciplinary action relating to the permit.

2. The applicant has been convicted of any crime that would disqualify the applicant from working at a commercial cannabis operation under the Act.

3. The applicant has been convicted of a serious or violent offense as listed under California Penal Code sections 667.5 and 1192.7(c); convicted of a misdemeanor involving moral turpitude as defined under State law (generally crimes relating to theft and dishonesty) within the five (5) years preceding the date of the application; or convicted of a crime involving the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, with the exception of marijuana related offenses for which the conviction occurred prior to passage of the California Compassionate Use Act. A conviction would include a plea or verdict of guilty or a conviction following a plea of nolo contendere (i.e. "no contest").

4. The applicant has engaged in misconduct related to the qualifications, functions or duties of a permittee.

5. The applicant has committed any act, which, if done by a permittee, would be grounds for suspension or revocation of a permit.

F. Notice Of Decision And Final Action:

1. Regulatory Permit: Following a noticed public hearing before the City Council, the Council may grant the regulatory permit subject to such conditions it deems reasonable under the circumstances to protect the public health, safety, and welfare of the community, or it may deny the issuance of the regulatory permit for any of the grounds specified in this section. The Council shall not issue a regulatory permit until the applicant has entered into a Project Development Agreement. The Project Development Agreement shall be considered by the City Council concurrently with the regulatory permit. The decision of the Council shall be final, subject to judicial review below.

2. Employee Permit: The Police Chief shall cause a written notice of his or her determination on the issuance or denial of an employee permit to be personally delivered or mailed to the applicant by certified U.S. mail, postage prepaid. The Police Chief's decision on an employee permit shall be final.

G. Suspension And Revocation Of Regulatory Permit Or Employee Permit:

1. Regulatory Permit: The City Council may suspend or revoke the regulatory permit of a commercial cannabis operation when any of the following occur:

a. The cannabis operation is conducted in violation of any provision of this section, the Act, or any other applicable law.

b. The cannabis operation is conducted in such a manner as to create a public or private nuisance.

c. A failure to pay the regulatory fee or revenue raising fee required by this chapter.

d. A material breach of the Project Development Agreement.

e. A failure to take reasonable measures to control patron conduct, where applicable, resulting in disturbances, vandalism, or crowd control problems occurring inside of or outside the premises, traffic control problems, or obstruction of the operation of another business.

f. A failure to comply with the terms and conditions of the regulatory permit.

g. Any act which would be considered grounds for denial of the regulatory permit in the first instance.

2. Employee Permit: The Police Chief may suspend or revoke an employee permit when the permittee or the employee has committed any one or more of the following acts:

a. Any act which would be considered a ground for denial of the permit in the first instance.

b. Violates any provision of this section, the Act, or any other applicable law relating to the marijuana operation.

c. Violates or fails to comply with the terms and conditions of the employee permit.

H. Procedures For Revoking Regulatory Permits: For regulatory permits, the procedures for revoking conditional use permits shall be utilized except that the matter shall be heard by the City Council in the first instance.

I. Procedures For Revoking Employee Permits: Prior to suspension or revocation of an employee permit, the Police Chief shall conduct a hearing. Written notice of the time and place of such hearing shall be served upon the permittee at least five (5) calendar days prior to the date set for such hearing. The notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending the permit. Notice may be given either by personal delivery or by certified U.S. mail, postage prepaid. Any permittee aggrieved by the decision of the Police Chief in suspending or revoking an employee permit shall have no appeal rights and the Police Chief's decision shall be final, subject to judicial review as set forth in this section.

J. Immediate Suspension: The Police Chief may immediately suspend or revoke a regulatory permit and an employee permit without notice or a hearing, subject to the appeal rights set forth herein, under the following circumstances:

1. The business owner or operator is convicted of a public offense in any court for the violation of any law which relates to the marijuana operation, or in the case of an employee permit, the employee is convicted of a public offense in any court for the violation of any law which relates to the permit.

2. The Police Chief determines that immediate suspension is necessary to protect the public health, safety, and welfare of the community. The Police Chief shall articulate the grounds for the immediate suspension in writing and the suspension shall only be for as long as necessary to address the circumstances which led to the immediate suspension.

K. Effect Of Denial Or Revocation: When the City Council shall have denied a regulatory permit or revoked a regulatory permit, or the Police Chief shall have denied or revoked an employee permit, no new application for a regulatory permit and no new application for an employee permit shall be accepted and no regulatory permit or employee permit shall be issued to such person or to any corporation in which he or she shall have any beneficial interest for a period of one year after the action denying or revoking the regulatory permit or employee permit. (Ord. 2019-03, 7-2-2019; amd. Ord. 2021-01, 3-16-2021)

A. Smoking Lounge Facilities:

1. Facilities shall be subject to the following requirements:

a. Concurrent Commercial Uses: In the event that a smoking lounge facility operates concurrent in a single premises with another commercial use, the smoking lounge facility shall be a permitted use in accordance with this chapter. In the absence of a concurrent commercial use, operation of a smoking lounge facility shall require a conditional use permit.

b. Separate Premises: Smoking lounge facilities shall be located on a separate parcel or within a tenant space that is segregated and apart from any other use. A smoking lounge facility shall have a dedicated entrance from the street or public sidewalk, and shall have no internal connections or passage to any other tenant space or use.

c. Sale Of Cannabis And Cannabis Products: Medical or adult-use cannabis and medical or adult-use cannabis products may be sold on the premises of a smoking lounge, subject to the following:

(1) The operator must hold a regulatory permit for a dispensary as provided in this chapter.

(2) Operators shall not permit patrons to bring their own personal cannabis or cannabis products to the smoking lounge facility.

(3) All cannabis or cannabis products purchased and opened at the facility must be smoked, inhaled, consumed or ingested on site, and shall not be permitted to leave the facility unless repackaged in a container that is compliant with all applicable State law and regulation.

(4) Operators shall only permit patrons to leave the smoking lounge facility with cannabis and cannabis products that remain in originally sealed and unopened packaging, or have been transferred by the operator for repackaging in a container that is compliant with all applicable State law and regulation.

d. Smoking Of Cannabis: The smoking of cannabis may be permitted at a smoking lounge facility, as may be allowable under State law.

e. Alcohol And Tobacco Products: The sale or consumption of alcohol or tobacco products is not allowed on the premises.

f. Minors: Access to the smoking lounge facility shall be restricted to persons twenty one (21) years of age and older.

g. Visibility: The smoking, inhalation, consumption or ingestion of cannabis or cannabis products shall not be visible from any public place or any area where minors may be present. The smoking lounge shall be located within a completely enclosed building.

h. Odor Control:

(1) The operator of each smoking lounge facility shall provide adequate air filtration so as to prevent any detectable odor at the exterior of the premises. Within twenty four (24) hours of any complaint concerning odors emanating from or originating within the facility, the operator shall respond to the complaint in question, and shall timely file a written disclosure to the building official documenting any and all actions taken and planned to address the odor complaints. The building official, upon a determination of the continued existence of detectable odor from the facility, may require an operator to submit an implementation plan and/or a performance schedule, above and beyond this written disclosure filed within twenty four (24) hours, to ensure the employment of measures to control the odor.

(2) Odors from a smoking lounge facility are identified as a public nuisance pursuant to this Code. The City may pursue all administrative, civil and criminal remedies identified in that chapter in relation to any nuisance determined to exist with respect to the operation of a smoking lounge facility. (Ord. 2019-03, 7-2-2019)

All commercial cannabis operations in the City of Lemoore shall pay applicable fees and taxes, which include the following.

A. Business License Fee: The business owner shall at all times maintain a current and valid business certificate and pay all Business Taxes required by title 3, chapter 1 of this Code pertaining to business licensing.

B. Regulatory Permit Fee: The business owner permitted to operate a commercial cannabis operation within the City of Lemoore shall pay an annual regulatory permit fee ("regulatory fee") to cover the costs of services, including but not limited to, anticipated enforcement relating to the commercial cannabis operation. The amount of the fee shall be set by resolution of the City Council and be supported by the estimated additional service costs associated with the commercial cannabis operation. The regulatory fee shall be due and payable prior to opening for business and thereafter on or before the anniversary date each year. The regulatory fee may be amended from time to time based upon actual costs.

C. Revenue Raising Fee: An annual revenue raising fee ("revenue raising fee") shall be applied for the privilege of having the right to operate in the City and made a term of the Project Development Agreement.

1. Revenue Raising Fee Finding: The City Council specifically finds that it is approving this chapter allowing commercial cannabis operations to operate in the City with the express understanding that the business (exclusive of cannabis special events and smoking lounges) will pay the revenue raising fee to the City as set forth herein, and that without the revenue raising fee, the City Council would not have adopted this chapter allowing commercial cannabis operations to operate in the City. By opening a commercial cannabis operation in the City, the premises owner, business owner, operator, and all responsible parties agree that, if the revenue raising fee is challenged by any one of them or a third party and set aside, the business must cease operation.

2. Amount Of Fee And Terms Of Payment: The revenue raising fee shall be an annual fee for all commercial cannabis operations (exclusive of cannabis special events and smoking lounges) in the City and will be set forth as a condition of the Project Development Agreement. The revenue raising fee shall be payable in advance, in not less than quarterly installments, with the first quarterly payment due prior to issuance of a certificate of occupancy. The first payment shall not be prorated, and in no event shall the first payment be less that the equivalent of one full quarterly payment. All quarterly payments shall be received by the City before the end of the quarter. The revenue raising fee shall be as follows:

a. Non-Dispensary Commercial Cannabis Operations:

(1) Manufacturing: Fifteen dollars ($15.00) a square foot of the commercial cannabis operation, with a minimum fee of forty five thousand dollars ($45,000.00).

(2) Cultivation (excluding nurseries): Six dollars ($6.00) a cubic foot of the cultivation.

(3) Nurseries: Two dollars ($2.00) per square foot of the cultivation.

(4) Other non-dispensary commercial cannabis operations: Ten dollars ($10.00) per square foot for the first three thousand (3,000) square feet of the commercial cannabis operation, eight dollars ($8.00) a square foot for additional square footage in the amount of three thousand one (3,001) square feet to five thousand (5,000) square feet, and six dollars ($6.00) a square foot for any additional square footage over five thousand (5,000) square feet.

b. Dispensaries: Five percent (5%) of gross sales revenues.

c. Multiple Cannabis Operations: If more than one commercial cannabis operation operates on the premises, whether within a single building or multiple buildings, each regulatory permit holder shall be responsible for paying the revenue raising fee.

3. Alternative Voter-Approved Tax: If the voters of the City approve a tax on the applicable commercial cannabis operations, the business owner shall pay that tax in lieu of the revenue raising fee that the tax is designed to replace.

4. Other Taxes: In addition to any other business or license fees required under this chapter, the business owner or State-licensed cannabis permittee shall be responsible for collecting and remitting any and all taxes, whatever their nature, that are legally in effect at the time of the sale or transfer of cannabis or cannabis products. (Ord. 2019-03, 7-2-2019)

The following remedies shall apply for violations of this chapter:

A. Criminal Enforcement: Violations for conduct that is not otherwise considered lawful under State law, shall be considered misdemeanors and are punishable by the maximum penalty of six (6) months' imprisonment in the County Jail or a fine of one thousand dollars ($1,000.00), as well as the administrative penalties as set forth below. Each and every day, or portion thereof, that a violation exists is a separate offense.

Should a court of competent jurisdiction subsequently determine that the criminal penalty provision renders this chapter unlawful, the City intends that the misdemeanor provision be severable from the remaining penalty provisions and the City will only pursue non-criminal remedies for violations of this chapter.

B. Administrative Enforcement: The City may also pursue all applicable civil and administrative remedies, including but not limited to injunctive relief and administrative citations.

C. Nuisance: Any use or condition caused or permitted to exist in violation of any of the provisions of this chapter shall be and is hereby declared a public nuisance and may be summarily abated by the City pursuant to this Code.

D. Civil Penalties: Any person who violates the provisions of this chapter may be subject to an administrative fine of up to one thousand dollars ($1,000.00) for each violation and for each day the violation continues to persist.

E. Nonexclusive Remedies: All remedies set forth in this section are not exclusive and the exercise of any remedy does not preclude the exercise of any other remedy that may now or subsequently exist in law or in equity or by statute or otherwise. (Ord. 2019-03, 7-2-2019)

Judicial review of a decision made under this chapter may be had by filing a petition for a writ of mandate with the Superior Court in accordance with the provisions of the California Code of Civil Procedure section 1094.5. Any such petition shall be filed within ninety (90) days after the day the decision becomes final as provided in California Code of Civil Procedure section 1094.6, which shall be applicable for such actions. (Ord. 2019-03, 7-2-2019)