Division XII — DELIVERY-ONLY DISPENSARY OPERATING CONDITIONS

In addition to the general operating requirements set forth in Division III of this Chapter, this Division provides additional requirements for Delivery-Only Dispensaries.

(ORD-24-0024 § 4, 2024)

Delivery-Only Dispensaries may sell, distribute, dispense, provide, deliver, or transport Cannabis, only in accordance with all applicable laws and regulations, including but not limited to, this Code, any regulations implemented by the Department of Cannabis Control, California Business and Professions Code Sections 26000 et seq., and all other applicable State, federal and local laws and regulations.

(ORD-24-0024 § 4, 2024)

Delivery-Only Dispensaries may only conduct deliveries between the hours of 9:00 a.m. to 10:00 p.m. up to seven (7) days per week.

(ORD-24-0024 § 4, 2024)

A Delivery-Only Dispensary shall facilitate the dispensing, making available, sale, and delivery of cannabis goods with a technology platform that uses point-of-sale technology to track, and database technology to record and store, the following information for each transaction involving the exchange of cannabis goods between the Delivery-Only Dispensary and customer:

A.

The date and time of transaction.

B.

The first name and employee number of the Delivery-Only Dispensary employee who processed the sale of cannabis goods on behalf of the Delivery-Only Dispensary.

C.

A list of all the cannabis goods purchased, including the quantity purchased.

D.

The total amount paid for the sale, including the individual prices paid for cannabis or cannabis products purchased, and any amounts paid for taxes.

(ORD-24-0024 § 4, 2024)

Transactions for Delivery-Only Dispensaries shall be taxed at the non-medical marijuana tax rate pursuant to Section 3.80.261.C.2 of this Code, unless the Dispensary is able to prove by reasonable and verifiable standards which portion of the gross receipts are tied to the sale of the adult-use cannabis goods and which portion are tied to the sale of medicinal cannabis goods.

(ORD-24-0024 § 4, 2024)

A.

A Delivery-Only Dispensary shall not make any cannabis goods available for sale or delivery to a customer unless the cannabis goods were received from a State licensed Distributor.

B.

Prior to making cannabis goods available to customers, Delivery-Only Dispensaries shall ensure that all cannabis goods dispensed, sold, delivered, or made available by the Delivery-Only Dispensary, at a minimum:

Are packaged and sealed in tamper-evident packaging that includes a unique identifier, such as a batch number and lot number or bar code, to identify and track the cannabis goods.

For manufactured cannabis products, that the product complies with all requirements of California Business and Professions Code Section 26130 and all other applicable laws and regulations.

The Dispensary has verified that the cannabis goods have not exceeded their expiration or sell-by date, if one is provided.

For edible cannabis product, that the products comply with State packaging and labeling requirements, including, but not limited to:

a.

Edible cannabis products shall not exceed 10 milligrams of tetrahydrocannabinol (THC) per serving.

b.

The THC content for the cannabis product in its entirety is printed on the package.

c.

All applicable requirements pursuant to California Business and Professions Code Sections 26120 and 26121 and any regulations promulgated thereunder.

C.

Secure storage of cannabis goods. Cannabis goods that are not used for immediate sale shall be stored in a limited-access area, such as a secure and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss.

D.

Edible cannabis products.

Delivery-Only Dispensaries may only dispense, sell, provide, or make available those edible cannabis products authorized by the State Department of Public Health and the City Health Officer.

The sale, distribution, and delivery of edible cannabis products shall be conducted in a manner that complies with all applicable food safety laws for the protection of humans consuming cannabis.

E.

No sales of expired cannabis products. Delivery-Only Dispensaries are prohibited from selling any expired cannabis goods. It is unlawful for any person to alter, edit, or adjust, in any manner, an expiration date on any item or cannabis product once affixed by its Manufacturer.

(ORD-24-0024 § 4, 2024)

A Delivery-Only Dispensary shall not provide free adult-use cannabis goods to any person. A Delivery-Only Dispensary shall not allow individuals that are not employed by the Delivery-Only Dispensary to provide free adult-use cannabis goods to any person on the permitted premises. In this Section, "free adult-use cannabis goods" shall mean any amount of cannabis goods provided to any person without cost or payment in exchange of any other thing of value.

(ORD-24-0024 § 4, 2024)

In addition to the requirements set forth in this Chapter for Delivery-Only Dispensaries, the delivery of cannabis goods shall be subject to the following requirements:

A.

Compliance. Delivery services shall be conducted in accordance with any relevant State and local laws and regulations, any applicable local laws in the delivery location, and any conditions imposed upon a Delivery- Only Dispensary.

B.

No person shall conduct sales of cannabis goods exclusively by delivery, unless they are a verified equity business.

C.

No Delivery-Only Dispensary shall open their site to the public or conduct any retail sales of any goods and services to any person on the Delivery-Only Dispensary site.

D.

Any application for a Delivery-Only Dispensary shall include a statement as to whether the proposed use will include delivery of cannabis goods to customers.

E.

Vehicle standards. A Delivery-Only Dispensary shall only allow delivery of cannabis goods in a vehicle that:

Is capable of securing (locking) the cannabis goods during transportation.

Is capable of being time and/or temperature controlled, if perishable cannabis goods are being transported.

Does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliation with a Delivery-Only Dispensary.

Shall only be operated by the delivery employee of the Delivery-Only Dispensary.

Only the licensee or an employee of the Delivery-Only Dispensary licensee for whom delivery is being performed shall be in the delivery vehicle.

F.

Inspections. Any motor vehicle used by a Delivery-Only Dispensary to deliver cannabis goods is subject to inspection by the City Manager or Chief of Police and may be stopped at the premises or during the delivery for inspection.

G.

Delivery employees. Every delivery employee of a Delivery-Only Dispensary shall be at least twenty-one (21) years of age and shall have a valid California Driver's License.

H.

Documentation during transport. Delivery employees of a Delivery-Only Dispensary shall carry a physical or electronic copy of the delivery request receipt with details regarding the delivery, a copy of the Delivery- Only Dispensary's current permits and/or licenses required by the State and City, the employee's government-issued identification, and an identification badge provided by the Delivery-Only Dispensary. All documentation shall be made available upon request to the City Manager or Chief of Police.

I.

A Delivery-Only Dispensary shall maintain a database, and provide to the City Manager upon verbal or written request, a list of delivery employees and vehicles authorized to conduct deliveries on behalf of the Delivery-Only Dispensary.

J.

Limitations.

While making deliveries, a Delivery-Only Dispensary's delivery employee shall not carry cannabis goods worth more than limits imposed by the State at any time. This value shall be determined using the current retail price of all cannabis goods carried by the delivery employee.

Direct route only. Except where a delivery employee requires rest, fuel, vehicle repair, or where the road conditions make the continued use of the road unsafe, impossible, or impracticable, a delivery employee may only travel to and from the Delivery-Only Dispensary, to the delivery address, and between delivery addresses while delivering cannabis goods.

Delivery-Only Dispensaries and delivery employees may only deliver cannabis goods to customers within a city or county that does not expressly prohibit such delivery by ordinance.

Consumption prohibited. No person shall consume or otherwise ingest cannabis goods, alcohol, any controlled substance, or intoxicants while transporting or delivering cannabis goods.

The Delivery-Only Dispensary shall prepare a delivery request receipt for each delivery of cannabis goods that shall include the following:

a.

The name and address of the Delivery-Only Dispensary;

b.

The first name and employee number of the Delivery-Only Dispensary's delivery employee who delivered the order;

c.

The first name and employee number of the Delivery-Only Dispensary's employee who prepared the order for delivery;

d.

The first name of the customer and a Delivery-Only Dispensary-assigned customer number for the person who requested the delivery;

e.

The date and time the delivery request was made;

f.

The delivery address;

g.

A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested;

h.

The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and

i.

Upon delivery, the date and time the delivery was made, and the signature of the customer who received the delivery.

A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle in compliance with all applicable State laws and regulations.

a.

The dedicated GPS device must be owned by the Delivery-Only Dispensary and used for delivery only. A personal or business phone or tablet is not an acceptable GPS device.

b.

The device shall be either permanently or temporarily affixed to the delivery vehicle, shall remain active, and inside of the delivery vehicle at all times during delivery.

c.

At all times, the Delivery-Only Dispensary shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the Dispensary and shall provide that information to the City Manager or Chief of Police upon request. The history of all locations traveled to by a delivery employee while engaging in delivery shall be maintained by the licensee for a minimum of 90 days.

K.

All cannabis and all cannabis products being delivered must be obtained from the site of the licensed Delivery-Only Dispensary that is authorized to deliver cannabis. No cannabis or cannabis products may be delivered from any other facility, such as a separate storage facility or a cannabis product manufacturing facility. Loading and unloading of cannabis products must only take place within the designated and approved secured loading area.

L.

Deliveries Facilitated by Technology Platforms. A delivery license retailer shall not sell or otherwise transfer any cannabis goods to a customer through the use of an unlicensed third party, intermediary business, broker, or any other business or entity.

M.

Delivery-Only Dispensary site buildings. A Delivery-Only Dispensary site must comply with the following requirements:

All entrances into the buildings on the Delivery-Only site must be locked at all times with entry controlled by the Delivery-Only Dispensary's managers and staff.

All areas in which cannabis or cannabis products are located in any building on the Delivery-Only Dispensary site must be separated from the main entrance and lobby, and must be secured by a lock accessible only to managers and staff of the Delivery-Only Dispensary.

Each Delivery-Only Dispensary shall have adequate storage space in a building for all its cannabis and cannabis products. The storage areas must not be shared with another delivery-only cannabis dispensary

permittee, must be separated from the main entrance and lobby and must be secured by a lock accessible only to managers and staff of the Delivery-Only Dispensary.

Each Delivery-Only Dispensary site must ensure the secure transfer of cannabis or cannabis products between a vehicle and the restricted area in which the products are stored.

(ORD-24-0024 § 4, 2024)

A.

Purpose and Intent. Recognizing the potential harms and public health implications associated with cannabis use, the purpose of this Section is to promote public health and safety to reduce the likelihood of the problematic use of cannabis by proactively requiring that all customer-facing employees and managers of Delivery-Only Dispensaries learn the necessary skills to protect customers, the public, employees of the Delivery-Only Dispensary, and Delivery-Only Dispensaries through a Responsible Vendor Training Program.

B.

Compliance. Every customer-facing manager and employee of a permitted Delivery-Only Dispensary shall enroll in the Department of Health and Human Services' standardized training for Delivery-Only Dispensaries within ninety (90) days of the establishment of the City's Responsible Vendor Training Pilot Program. Upon completion of such training, employees and managers shall receive written confirmation from the Department of Health and Human Services of successful completion of the program. Delivery-Only Dispensaries shall keep a copy of said written confirmation on the permitted premises for every customer- facing employee and manager.

C.

New employees and managers. Any newly hired manager or employee of a permitted Delivery-Only Dispensary shall successfully complete the Responsible Vendor Training Pilot Program within sixty (60) days of said individual's first day of employment.

D.

Renewal of Training. After initial successful completion of the Responsible Vendor Pilot Training Program, every manager and employee of a Delivery-Only Dispensary shall successfully complete the Responsible Vendor Training Pilot Program every twenty-four (24) months.

E.

Online or in-person training is at the discretion of the Department of Health and Human Services. Nothing in this Section shall prevent the City from becoming a training provider under any similar program for Delivery-Only Dispensaries implemented by the State.

F.

Within three (3) years of the establishment of the program, the City Council will consider the available data and determine whether and how to continue the program. This Section shall remain in effect until revoked by the City Council.

(ORD-24-0024 § 4, 2024)