Martinez Municipal Code Ch. 5.29 Commercial Cannabis

The purpose of this Chapter is to impose regulatory requirements on various commercial and medicinal cannabis uses authorized and licensed by the State of California pursuant to state law. This Chapter imposes licensing and regulatory requirements on cannabis businesses in addition to any other business license and regulatory requirements imposed on cannabis businesses by applicable state law. If a commercial cannabis use is not specifically permitted in this Chapter, it is not allowed to operate within the City.

(Ord. No. 1421, § 2, 4/3/2019)

When used in this Chapter, the following words shall have the meanings ascribed to them as set forth herein. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.

(Ord. No. 1421, § 2, 4/3/2019)

"Applicant"

means an owner applying for a commercial cannabis operators permit pursuant to this Chapter.

(Ord. No. 1421, § 2, 4/3/2019)

"Bureau"

means the Bureau of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.

(Ord. No. 1421, § 2, 4/3/2019)

"Cannabis"

means 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. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "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, manufacture, 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. For the purpose of this definition, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.

(Ord. No. 1421, § 2, 4/3/2019)

"Cannabis accessories"

has the same meaning as in Section 11018.2 of the Health and Safety Code.

(Ord. No. 1421, § 2, 4/3/2019)

"Cannabis concentrate"

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

(Ord. No. 1421, § 2, 4/3/2019)

"Cannabis delivery permit"

means a permit issued by the Chief of Police to business that delivers cannabis products within the City limits of the City of Martinez.

(Ord. No. 1421, § 2, 4/3/2019)

"Cannabis product"

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

(Ord. No. 1421, § 2, 4/3/2019)

"Chief of police"

means the Chief of the City Police Department or designee.

(Ord. No. 1421, § 2, 4/3/2019)

"City"

means the City of Martinez, a general law city.

(Ord. No. 1421, § 2, 4/3/2019)

"City manager"

means the City Manager of the City of Martinez, or designee.

(Ord. No. 1421, § 2, 4/3/2019)

"Community and economic development director"

means the City's Community and Economic Development Director or designee.

(Ord. No. 1421, § 2, 4/3/2019)

"Commercial cannabis activity"

includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this Chapter.

(Ord. No. 1421, § 2, 4/3/2019)

"Commercial cannabis business"

means any business or operation which engages in medicinal or adult-use commercial cannabis activity.

(Ord. No. 1421, § 2, 4/3/2019)

"Commercial cannabis use"

means any business or operation which engages in medicinal or adult-use commercial cannabis activity.

(Ord. No. 1421, § 2, 4/3/2019)

"Commercial cannabis operators permit" (sometimes referred to as "CCOP")

means a ministerial permit issued by the City of Martinez pursuant to this Chapter to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City. The initial commercial cannabis operators permit and its annual renewal are made expressly contingent upon the permittee's ongoing compliance with all of the requirements of this Chapter and any regulations adopted from time to time by the City governing commercial cannabis activity.

(Ord. No. 1421, § 2, 4/3/2019)

"Conditional certificate" (sometimes referred to as "CC")

means a conditional privilege awarded by the City Council to a specific commercial cannabis business which grants that business the privilege to apply for a commercial cannabis operators permit.

(Ord. No. 1421, § 2, 4/3/2019)

"Contra Costa County fire chief"

means the Contra Costa County Fire Chief or designee.

(Ord. No. 1421, § 2, 4/3/2019)

"Cultivation"

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

(Ord. No. 1421, § 2, 4/3/2019)

"Customer"

means a natural person 21 years of age or over, or a natural person 18 years of age or older who possesses a physician's recommendation, or a medical marijuana identification card.

(Ord. No. 1421, § 2, 4/3/2019)

"Day care center"

has the same meaning as set forth in Section 1596.76 of the Health and Safety Code.

(Ord. No. 1421, § 2, 4/3/2019)

"Delivery"

means the commercial transfer of cannabis or cannabis products by a state-licensed commercial cannabis business to a customer.

(Ord. No. 1421, § 2, 4/3/2019)

"Delivery operator"

means the person responsible for a business that delivers cannabis products within the City of Martinez.

(Ord. No. 1421, § 2, 4/3/2019)

"Dispensary"

means a business that holds a valid state license and conducts the retail sale of cannabis or cannabis products. "Dispensary" means the same thing as "retail cannabis store."

(Ord. No. 1421, § 2, 4/3/2019)

"Distribution"

means the procurement, sale, and transport of cannabis and cannabis products between commercial cannabis businesses licensed by the state.

(Ord. No. 1421, § 2, 4/3/2019)

"Distributor"

means a business that holds a valid state license for distribution of cannabis or cannabis products.

(Ord. No. 1421, § 2, 4/3/2019)

"Licensee"

means a commercial cannabis business that possesses a valid, unexpired and non-suspended state license.

(Ord. No. 1421, § 2, 4/3/2019)

"MAUCRSA"

means the California state law entitled Medicinal and Adult-Use Cannabis Regulation and Safety Act and regulations promulgated thereunder.

(Ord. No. 1421, § 2, 4/3/2019)

"Manufacture"

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

(Ord. No. 1421, § 2, 4/3/2019)

"Manufactured cannabis"

means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application.

(Ord. No. 1421, § 2, 4/3/2019)

"Manufacturer"

means a business that holds a valid state license and conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or container.

(Ord. No. 1421, § 2, 4/3/2019)

"Medicinal cannabis" or "medicinal cannabis product"

means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician's recommendation.

(Ord. No. 1421, § 2, 4/3/2019)

"Operation"

means any act for which licensure is required under state laws and for with a permit is required under the provisions of this Chapter, or any commercial transfer of cannabis or cannabis products.

(Ord. No. 1421, § 2, 4/3/2019)

"Non-storefront retail business"

means a non-storefront cannabis business that sells and delivers cannabis or cannabis products to customers from a premises that is not open to the public. While the business shall have a physical location within the City of Martinez, all sales are consummated exclusively by delivery.

(Ord. No. 1421, § 2, 4/3/2019)

"Owner"

means any of the following:

A person with an aggregate ownership interest of five percent or more in the business applying for or holding a commercial cannabis operators permit.

The manager of a nonprofit or other entity.

A member of the board of directors of a for-profit or nonprofit entity.

An individual who will be participating in the direction, control, or management of the business applying for and/or holding a commercial cannabis operators permit.

(Ord. No. 1421, § 2, 4/3/2019)

"Package"

means any container or receptacle used for holding cannabis or cannabis products.

(Ord. No. 1421, § 2, 4/3/2019)

"Premises"

means the designated structure or structures and land specified in the application for a commercial cannabis operators permit that is owned, leased, or otherwise held under the control of the applicant or proposer where the commercial cannabis activity is proposed to be, will be or is conducted.

(Ord. No. 1421, § 2, 4/3/2019)

"Proposal"

means the package of information submitted by the proposer(s) for consideration by the Proposal Review Committee.

(Ord. No. 1421, § 2, 4/3/2019)

"Proposal review committee"

means staff members of the City of Martinez from the Police, Finance and Community and Economic Development Department; as well as consultants retained by the City for the purpose of reviewing conditional certificate applications.

(Ord. No. 1421, § 2, 4/3/2019)

"Proposer"

means a person or persons submitting a conditional certificate application to the City of Martinez.

(Ord. No. 1421, § 2, 4/3/2019)

"Retail cannabis store"

means a business that holds a valid state license that sells cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale. "Retail cannabis store" means the same as "dispensary."

(Ord. No. 1421, § 2, 4/3/2019)

"Schools"

means any school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12).

(Ord. No. 1421, § 2, 4/3/2019)

"Sell," "sale," and "to sell"

include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and include the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a customer to the commercial cannabis business from whom the cannabis or cannabis product was purchased.

(Ord. No. 1421, § 2, 4/3/2019)

"State license"

means a permit or license issued by the State of California, or one of its departments or divisions, under MAUCRSA and any subsequent State of California legislation regarding the same to engage in commercial cannabis activity.

(Ord. No. 1421, § 2, 4/3/2019)

"Testing laboratory"

means a business that holds a valid state license that offers or performs tests of cannabis or cannabis products and that is both of the following:

Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

Licensed by the bureau.

(Ord. No. 1421, § 2, 4/3/2019)

"Transport"

means the transfer of 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 MAUCRSA which may be amended or repealed by any subsequent State of California legislation regarding the same. Transport does not include deliveries of cannabis or cannabis products.

(Ord. No. 1421, § 2, 4/3/2019)

"Youth center"

means any public or private entity that is exclusively used to host recreational or social activities for minors.

(Ord. No. 1421, § 2, 4/3/2019)

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of the MAUCRSA, any subsequent state legislation and/or regulations regarding same, the City of Martinez is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of medicinal and commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City of Martinez to the commercial cannabis activities permitted under this Chapter.

(Ord. No. 1421, § 2, 4/3/2019)

A. Except as specifically and expressly authorized in this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, distribution and/or transportation (other than as provided under Business and Professions Code Section 26090(e)), of cannabis or cannabis products is prohibited in the City of Martinez.

B. No person may engage in any commercial cannabis activity within the City of Martinez unless the person:

1. Has a valid commercial cannabis operators permit from the City; and

2. Has a valid state license; and

3. Is in compliance with all applicable state and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activities engaged in by said person or business.

C. It is a violation of this Chapter for any person or entity to engage in any commercial cannabis cultivation of any kind.

D. It is a violation of this Chapter for any person or entity to use or include a drive-through component in their commercial cannabis business.

(Ord. No. 1421, § 2, 4/3/2019)

A. In order to operate a commercial cannabis business, proposer(s) shall successfully complete a rigorous review process. The steps of the process are as follows:

1. Submit a complete proposal for consideration by the City.

2. Achieve a score of 80 percent or greater from the Proposal Review Committee and be forwarded to the City Council as a finalist.

3. Be awarded a conditional certificate by City Council; which grants that business the privilege to apply for a commercial cannabis operators permit.

4. Apply for and secure all needed planning and building permits and complete any required environmental review pursuant to the California Environmental Quality Act.

5. Apply for and secure the ministerial commercial cannabis operators permit.

B. This Chapter describes the commercial cannabis business selection process. It also authorizes the City Manager to promulgate regulations implementing this Chapter, including the procedures to govern the proposal process, and the manner in and the criteria upon which the Proposal Review Committee will recommend which proposals will be finalists.

C. This Chapter also authorizes the City Manager to prepare the necessary forms and adopt any necessary rules applicable to implement the processes included in this Chapter, unless specifically noted otherwise herein.

(Ord. No. 1421, § 2, 4/3/2019)

The content of the proposal shall include the following minimum information:

A. Identifying information for ownership and management. The name and address of each commercial cannabis business owner and an explanation of the legal form of business ownership.

B. Description of the proposed site. The site address, description of the premises, name(s) and address(es) of the property owner(s) where the commercial cannabis use will be located, as well as a site plan and floor plan(s) of the proposed commercial cannabis use.

C. Description of proposed operations. A description of the nature of the proposed commercial cannabis use, including product types, average or expected sales amounts by product type, average or expected amount of cannabis storage. It should also include how the overall business plan and how the proposer(s) intends to facilitate communications with the City.

D. Proof of state license compliance. A description of the specific state license(s) or permits that the proposer(s) plans to obtain. The proposer(s) shall describe how the business will meet the state licensing requirements.

E. Additional identifying information for proposed owners and all employees. The proposer(s) shall submit for each commercial cannabis business owner, as well as each employee specific personal information including names, birth dates, addresses, social security numbers, complete criminal history, relevant work history, and the names, addresses, telephone numbers and email addresses of businesses owned or operated within the last ten years, investor or partner information of those businesses, electronic fingerprint images and related information as required by the Chief of Police or designee for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests. Mandatory criminal background checks will be conducted using this information. All confidential information shall be held in a confidential file, and except as may be otherwise ordered by a court of competent jurisdiction, shall be treated as exempt from disclosure as a public record pursuant to Government Code Section 7922.

F. Disclosure of litigation and legal proceedings. A description of any litigation in which the proposer(s) has been involved in, within the ten years immediately preceding the date of the proposal, and a statement of whether any authorization allowing the business currently operated by the proposer(s) or the state license authorizing the operation of such business has been revoked or suspended within the ten years immediately preceding the date of the proposal.

G. Security plan. A description and documentation of how the proposer(s) will secure the business and premises at all times. All security plans shall be held in a confidential file, and except as may be otherwise ordered by a court of competent jurisdiction, shall be treated as exempt from disclosure as a public record pursuant to Government Code Section 7922. The security plan shall address, but is not limited to, the following:

1. Security personnel staff plan. Description of security personnel staff plan that ensures there are always at least two security personnel on-site during business hours. Additionally, there shall be a minimum of one roving security person and a maximum of two security personnel required to be on-site after business hours, subject to review and approval by the Chief of Police, to ensure safe operations of the business. The Chief of Police has sole discretion to review and adjust on-site security requirements (but not less than the personnel requirements as set forth above), based on crime trends, physical security measures installed, and considerations related to protecting public health, safety, and welfare. All security personnel must be certified by the State Bureau of Security and Investigative Services. All decisions of the Chief of Police regarding the requirements of the Security Personnel Staff Plan are final.

2. Prevention of illegal activities of trespassing. Measures for preventing individuals from remaining on the premises if they are not engaged in authorized activity.

3. Prevention of smoking and/or consumption. Measures to prevent smoking of cannabis and cannabis products and any other consumption or use of cannabis or cannabis products on the premises.

4. Disposal of unusable cannabis. Measures for the safe disposal of expired, contaminated, adulterated, deteriorated, or excess cannabis products.

5. Prevention of adverse impacts on adjacent properties. Measures for preventing adverse off-site impacts to adjacent properties.

6. Cash/currency handling—Best practices. Measures for safeguarding cash and other currency held on the premises as well as for the periodic, secure transport of that currency to a bank or other off-site location. This includes the transfer of currency for remitting City tax payments.

7. Cannabis handling—Best practices. Measures for safely transporting cannabis product from inside the facility to vehicles used for delivery. A transportation plan that details the procedures established for the safe and secure transport of cannabis and cannabis products.

8. Cannabis inventory control. Measures to 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 purchase as set forth in MAUCRSA.

9. Customer records. Measures to maintain a record of all persons, patients, collectives, and primary caregivers served by the commercial cannabis use, for a period of no less than that specified in MAUCRSA.

10. Financial records. Measures to maintain accurate records in an electronic format, detailing all revenues and expenses of the business, and all of its assets and liabilities.

11. Building security, monitoring, safety, and surveillance.

a. Alarm. Measures that include a professionally installed alarm system (perimeter, fire, and panic buttons), that is monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services and notes if there will be remote monitoring of alarm systems by licensed security professionals.

b. Building surveillance plan. Measures that include 24-hour security surveillance live-monitoring cameras with talk-down feature and detection analytics of at least high-definition quality, able to record in color, to monitor the following parts of the facility:

i. All entrances and exits to and from the cannabis business;

ii. All interior spaces within the cannabis business which are accessible to the public; all interior spaces where cannabis, cash, or currency is being stored; and all interior spaces where diversion could reasonably occur.

c. Lighting. Measures that include a perimeter lighting systems (including motion sensors) for after-hours security showing that the minimum lighting level of one-foot candle shall be provided at building entrances and in parking lot areas.

d. Unauthorized entry. Measures to prevent unauthorized entry to the building via any doors, windows, hatches or other means of ingress or egress, including, but not limited to, retractable, folding or sliding metal gates, or metal rollup or accordion doors and bollards or other means to prevent unauthorized vehicular entry.

All facilities shall maintain adequate exterior lighting in the parking areas and entry/exit points for help provide safety for patrons and employees.

12. Building internal access plan. Measures to establish limited access areas within the business accessible only to authorized commercial cannabis business personnel.

13. Cyber security plan. Measures to establish network security protocols capable of protecting computer information and all digital data that are certified by Underwriters Laboratories ("UL").

H. Odor control. The property provides a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the facility is not detected outside the facility, anywhere on adjacent property or public rights-of-way, or within any other unit located within the same building as the cannabis retail facility.

I. Certificate of insurance. Certificate of insurance demonstrating ability to comply with the insurance requirements contained in this Chapter.

J. Hazardous materials. To the extent that the proposer intends to use any hazardous materials in its operations, the proposer(s) shall provide a completed building occupancy classification form, identifying all hazardous materials proposed for storage, use or handling on the premises, including compressed and cryogenic gases such as carbon dioxide, nitrogen, and others. "Hazardous materials" includes any hazardous substance regulated by any federal, state, or local laws or regulations intended to protect human health or the environment from exposure to such substances.

K. Pro forma. Three years of pro forma estimates for operations, including a discussion of the business assumptions used to develop the estimates. Example assumptions include revenue, customer volume, visits, and product costs, compensation of employees, equipment costs, utility costs, and other operation and maintenance costs.

L. Community benefits. A description of the benefits that the commercial cannabis business will provide to the local community, such as employment for residents of the City, community contributions, and/or economic incentives to the City. Any community benefits that a commercial cannabis business agrees to provide shall be incorporated into the terms and conditions under which the commercial cannabis business will operate with the City's approval, if and when the conditional certificate is awarded. Said agreement may take the form of a written agreement and/or conditions of approval. Such terms and conditions shall be in addition to the requirements of this Chapter.

M. Diversity, equity, and inclusion measures. Proposals shall include specific measures to promote diversity, equity, and inclusion, including, but not limited to, diversity and inclusion training for all employees, the formation of Employee Resource Groups, targeted outreach and recruitment efforts with underrepresented groups, mentorship or sponsorship programs for underrepresented groups, and talent development programs for underrepresented employees.

N. Signature of proposer(s) and property owner(s). The proposal shall be signed by all proposer(s), certifying, under penalty of perjury, that all information submitted as part of the application process is, to the best of their knowledge, true, accurate, and complete. The proposal shall be signed by all property owners of the location where the commercial cannabis business is proposed to be located, certifying that the property owner(s) has/have reviewed the proposal and approves the use of the property for the purposes stated in the proposal.

O. Fees. An administrative review fee deposit as adopted in the user fee schedule shall submitted to the City along with the proposal to be used to cover the cost of all needed staff time, consultant costs, and other resources utilized in vetting the proposal.

The proposer(s) shall also be responsible for reimbursing the City for the cost of any staff time and City resources, in excess of the deposit, if needed. If any monies are not expended, they shall be refunded. Proposer(s) shall be required to execute a cost recovery agreement with the City as a condition to submitting a proposal.

P. Additional information. The proposal may also be required to include additional information and/or documents pursuant to regulations promulgated to implement and enforce the provisions of this Chapter.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1454, § III, 3/6/2024)

A. The Proposal Review Committee shall consider each proposal and shall give particular consideration to the capacity, capitalization, and history of the proposer, the community benefit provided by the proposed commercial cannabis business, and any other factors that the City, in its discretion, deems necessary to maintain and/or promote the health, safety, and general welfare of the public. An administrative rating system shall be created by the City Manager or designee that reflects these priorities. The City reserves the right to reject any or all proposals if it is determined to be in the best interest of the City, taking into account any aspect of the health, safety, and/or welfare of the community.

B. The Proposal Review Committee consists of staff members from the Police, Finance, and Community and Economic Development Departments, as well as consultants retained by the City. It shall review each proposal and set an overall score. The purpose of the Proposal Review Committee is to develop a list of qualified finalists for the various types of cannabis businesses the ordinance allows to be established in the City.

C. The Proposal Review Committee reserves the right to:

1. Contact any proposer if the PRC has any additional questions after reviewing the proposals.

2. Interview any or all proposers as the PRC finds it necessary to provide each proposal an overall score.

D. All proposals receiving a score of 80 percent or higher by the Proposal Review Committee shall be referred to the City Council as a finalist.

E. Any proposal rejected by the Proposal Review Committee may be appealed to the City Council, pursuant to Section 5.29.280, Appeals.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1454, § III, 3/6/2024)

A. The City Council shall hold a duly noticed public hearing to consider the awarding of conditional certificates (CC) with respect to those proposals which constitute finalists. The award of CC's shall be left to the sole discretion of the City Council. The City Council's award of each conditional certificate shall be memorialized in written decisions supporting each award and any additional conditions and/or agreements required by the City Council. The Council may award CC's for each category of commercial cannabis business identified below in an amount no greater than the number assigned in Section 5.29.160 Types and Amounts of Commercial Cannabis Businesses. In its deliberation, the City Council reserves the right to reject any or all proposals and reserves the right to request and obtain additional information from any proposer, should the City Council find such actions necessary in order to act in the best interests of the health, safety and welfare of the City.

B. Prior to any CC award, the City Council may modify, postpone, or cancel (i) any requirement applicable to any proposal, or (ii) the entire program established under this Chapter, at any time without liability, obligation, or commitment to any party, firm, or organization. Any person submitting proposals assumes the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled or eliminated, as the case may be, at any time prior to issuing a CCOP to that person.

(Ord. No. 1421, § 2, 4/3/2019)

A. Upon being granted a conditional certificate, proposer(s) (hereinafter sometimes referred to as "applicants") shall be eligible to apply for and take the necessary steps to obtain the planning entitlements and building permits necessary to construct, install and/or operate their specific commercial cannabis business at the location identified in their proposal. This includes any required environmental review pursuant to the California Environmental Quality Act, (CEQA).

B. From the date the City Council awards a conditional certificate, the applicant shall have up to one year to:

1. Apply for and obtain the necessary planning entitlements; and

2. Apply for and receive building permit(s) and complete all necessary renovations and/or new construction and secure approval of a final building permit and/or certificate of occupancy; and

3. Satisfy all of the conditions of approval required and/or included in its conditional certificate award and provide proof that all requirements of CCOP, have been met. This includes all required legal contracts necessary to secure the proposed public benefit included in the proposal; and

4. Apply for and be issued a commercial cannabis operators permit.

C. Extensions of this time period beyond one year shall be granted on a case-by-case basis by the City Manager.

(Ord. No. 1421, § 2, 4/3/2019)

A. Prior to commencing operations of a commercial cannabis business, the applicant of the commercial cannabis business must obtain a commercial cannabis operators permit (CCOP) from the City Manager.

B. To receive this ministerial permit, the applicant must provide proof of all the following:

1. A valid conditional certificate awarded by the City Council and a state license for whichever type of commercial cannabis business(es) the conditional certificate stipulates.

2. All necessary planning approvals, including a design review, if applicable.

3. All necessary building permits, and approvals by agencies with jurisdiction including but not limited to the Contra Costa County Fire Department, Contra Costa County Health Department, City Water Department, and Sanitary Sewer Agency, and any other agency approvals that may be required, as applicable.

4. A City business license issued to the applicant for the relevant commercial cannabis business.

5. Satisfaction of and/or compliance with all of the conditions specified in Section 5.29.130, Commercial Cannabis Businesses Awarded Conditional Certificates may Apply for Planning and Building Permits.

C. Upon receipt of a complete application for a commercial cannabis operators permit, the City Manager shall undertake an inspection and investigation to ascertain whether the applicant has satisfied all of the conditions precedent to issuance of the commercial cannabis operators permit specified in this Chapter. Except in unusual circumstances, the City Manager shall complete the inspection and investigation within 30 days of receiving the applicant's complete application.

D. The City Manager's inspection and investigation shall include a review of the relevant documents and the proposed business location to ensure that the commercial cannabis business and its applicant have satisfied all of the criteria set forth in the Section 5.29.140.B, above.

E. If the City Manager cannot approve the commercial cannabis operators permit, the City Manager will provide written notice of the reasons therefor ("CM's Investigation Report") to the applicant within ten days of the completion of the City Manager's inspection and investigation.

F. Each commercial cannabis operators permit issued pursuant to this Chapter shall expire 12 months after its date of its issuance. Commercial cannabis operators permits may be renewed as provided in Section 5.29.240 Renewal of Commercial Cannabis Operators Permit.

(Ord. No. 1421, § 2, 4/3/2019)

In addition to all the requirements listed in Section 5.29.100, Required Proposal Content, the following standards shall apply to all commercial cannabis businesses. Failure of a commercial cannabis business to comply with the following standards shall be grounds for the suspension, revocation, and/or non-renewal of the commercial cannabis operators permit pursuant to Section 5.29.250, Notice of Proposed Denial, Suspension, Revocation, or Refusal to Renew Commercial Cannabis Operators Permit. The remedies available to the City for such non-compliance shall not be cumulative and include all remedies set forth in Section 5.29.300, Each Violation is a Separate Offense and a Public Nuisance; Section 5.29.310, Criminal Penalties and Section 5.29.320, Remedies Cumulative and Not Exclusive.

A. Access. The following persons may have access to all cannabis businesses:

1. Adults age 21 and over with appropriate government-issued identification.

2. Adults ages 18—20 with appropriate government-issued identification, if they are in possession of a valid physician's recommendation.

3. Persons under 18 and those who do not meet Section 5.29.150.A.1 and 2 are prohibited access without exception.

B. Display of permit and city business license. The original commercial cannabis operators permit issued by the City pursuant to this Chapter and the City issued business license shall be posted inside the commercial cannabis business in a location readily-visible to the public.

C. Community and security contact persons.

1. Each commercial cannabis business shall identify a security liaison and provide contact information to the Chief of Police who shall be available at 24 hours a day to meet with the Chief of Police regarding security measures and operational issues.

2. Each commercial cannabis business shall identify a community liaison and provide contact information to Community and Economic Development Director who shall be available during business hours of the business to respond to concerns, complaints, and feedback from the community. This person shall also be listed on business's website and on the premises in a location visible to members of the public.

D. Safe operation. All commercial cannabis businesses shall operate in compliance with all state and local building and fire safety codes. This includes emergency access and emergency evacuation plans.

E. Indoor only. All commercial cannabis business shall be conducted within buildings. No production, processing, manufacturing, distribution, storage, advertising, or display of cannabis or cannabis products shall be visible from the exterior of a building where a commercial cannabis business is located, except for as provided by signage, below.

F. Signage. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property with respect to which a commercial cannabis business permit has been issued, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. 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 the City of Martinez Municipal Code.

1. Entrance signage.

a. 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.

b. There shall also be a notice indicating that persons aged 18 to 20 may only be admitted if they possess a valid doctor's recommendation, and that all persons under 18 are strictly prohibited access.

G. Odor control. Odors shall be contained on the property on which the commercial cannabis business is located.

1. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient 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. To meet this standard, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the Community and Economic Development Director determine is a more effective method or technology:

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

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

H. Video surveillance. Commercial cannabis businesses must have surveillance cameras installed, which shall be motion-sensor activated and capable of recording all activity on the premises, except for any restroom area. At a minimum, the following standards are required:

1. The operator shall provide the Chief of Police remote access of any on-site web-based video surveillance to monitor remotely at any time. The City will only monitor video surveillance for law enforcement purposes related to in-progress or past crimes committed on the premises of a cannabis business.

2. Surveillance cameras shall record 24 hours per day, seven days per week.

3. All exterior surveillance cameras must be in weather-proof enclosures and located in such a way as to minimize the possibility of vandalism.

4. The premises shall be equipped with, and at all times be monitored by, a secure web-based surveillance system. The video surveillance shall include live monitoring of cameras with talk-down feature and detection analytics.

5. Sensors shall be installed to detect entry and exit from all secure areas of the cannabis business, and monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.

6. A photometric plan meeting demonstrating that the minimum lighting level of one-foot candle shall be provided at building entrances and in parking lot areas.

7. Surveillance video shall be kept for a minimum of 90 days in a format that can be easily accessed for viewing.

8. The surveillance camera and recording system must be of adequate quality, color rendition, and resolution to allow the ready identification of an individual on or adjacent to the property and the ability to capture license plates entering and exiting the premises.

9. Cameras shall specifically capture the following:

a. Areas where cannabis is stored shall have camera placement in the room facing the primary entry door at a height which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.

b. Each location where testing, sampling, weighing, packaging, transport preparation, processing, manufacturing, or labeling activities occur. Cameras shall be positioned to record all weighing, packaging, transport preparation, processing, manufacturing, or labeling activities.

c. Access points to the secured surveillance recording area.

I. Location of video surveillance and alarm equipment. At a minimum, the following standards are required:

1. All surveillance equipment, records and recordings must be stored in a secured area that is only accessible to management staff.

2. Operators must keep a current list of all authorized employees who have access to the surveillance system or alarm system.

3. Off-site monitoring and video recording storage of the premises by the operator or an independent third-party is authorized as long as standards exercised at the remote location meet or exceed all standards for on-site monitoring.

4. The commercial cannabis business shall maintain up-to-date and current records and existing contracts on the premises that describe the location and operation of each security alarm system, a schematic of security zones, the name of any alarm installation company, and the name of any monitoring company. This information must be provided to the Chief of Police upon request.

J. Site security. At a minimum, the following standards are required:

1. Motion-sensor lighting and alarms shall be required and shall be professionally installed and monitored to ensure the safety of persons and to protect the premises from theft.

2. Alarm and surveillance systems shall be equipped with a failure notification system that provides prompt notification to the operator of any prolonged surveillance interruption or failure of the system.

3. All security measures installed on the premises shall have the capability to remain fully operational during a power outage.

4. All structures used for commercial cannabis use shall have locking doors, with commercial-grade non-residential locks, to prevent free access.

5. Access to secure areas of the business shall be by key card and/or a mechanism that provides tracking information user, date, and time.

6. Panic buttons shall be installed in all commercial cannabis business premises with easy access by employees and all employees shall be properly trained on its use. These buttons shall have direct notification to the Martinez Police Department Communications Center as well as to the alarm monitoring company.

7. Any security bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building in compliance with all applicable codes.

8. Windows, doors, and roof hatches of the premises shall be secured from the inside with effective means so as to prevent unauthorized entry, and shall be equipped with latches, retractable, folding or sliding metal gates, or metal rollup or accordion doors and bollards or a similar mechanism that may be released quickly from the inside to allow exit in the event of emergency in compliance with all applicable provisions in this Code.

9. At least two security personnel shall be on-site during business hours. A minimum of one roving security person and a maximum of two on-site security personnel shall be on-site after business hours, subject to review by the Chief of Police in their sole discretion. The Chief of Police may review and adjust on-site security requirements (but not less than the personnel requirements as set forth above), based on crime trends, physical security measures installed, and considerations related to protecting public health, safety, and welfare. All security personnel must be certified by the State Bureau of Security and Investigative Services.

10. Any decision by the Chief of Police regarding the site security is final and may not be appealed, as the security plan shall be held in a confidential file, and except as may be otherwise ordered by a court of competent jurisdiction, shall be treated as exempt from disclosure as a public record pursuant to Government Code Section 7922. The Chief of Police shall notify the City Manager of approved revisions to an existing security plan.

K. Cannabis control. Except for limited amounts of cannabis used for display purposes, samples, immediate sales, and other authorized uses, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault that meets approval of the Chief of Police. To the fullest extent possible, all cannabis and cannabis products shall be kept in a manner that prevents theft and loss, except for limited amounts used for the purposes of display or immediate sales.

L. Weapons prohibited. Weapons and firearms are prohibited on the premises, unless requested by the proposer or applicant as part of their confidential Security Personnel Staff Plan and authorized by the Chief of Police. This provision shall not apply to public officials engaged in official duty. Any decision by the Chief of Police regarding the use of weapons and firearms is final and may not be appealed, as all security measures shall be held in a confidential file, and except as may be otherwise ordered by a court of competent jurisdiction, shall be treated as exempt from disclosure as a public record pursuant to Government Code Section 7922.

M. Insurance coverage. Commercial cannabis businesses shall maintain at all times commercial general liability providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury with limits of not less than $5,000,000.00 per occurrence, combined single limit and comprehensive automobile liability (owns, non-owned, hired) providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence, combined singled limit basis for bodily injury, including death, of one or more persons, property damage, and personal injury with limits of not less than $5,000,000.00. The commercial general liability policy shall provide contractual liability, shall include a severability of interest or equivalent wording, shall specify that insurance coverage afforded to the City shall be primary, and shall name the City, its officers, and employees as additional insured.

N. Ledgers and accounting systems. Each commercial cannabis business shall have software systems in place to provide point of sale data as well as audit trails or both product and cash, where applicable. In addition, they shall maintain a registry of owners, operators and employees and persons served at the business. Each commercial cannabis business shall allow the City Manager or designee to have access to the business's books, records, and accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination by the City. Records, accounts, and any and all relevant data or documents will be produced no later than 24 hours after receipt of the City's request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City's software and hardware. The business shall notify the City Manager or designee within 72 hours of the loss or unauthorized alteration of records related to cannabis or cannabis products, customers, employees, or agents.

A detailed explanation of each type of ledger is included below.

1. Accounting records. Each commercial cannabis business shall maintain accurate records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities.

a. On no less than an annual basis (at or before the time of the renewal of a CCOP issued pursuant to this Chapter), or at any time upon request of the City, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous 12-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes paid or due to be paid.

b. Commercial cannabis business shall also maintain, for a minimum of three years, a written accounting or ledger of all cash, receipts, credit card transactions, and reimbursements (including any in-kind contributions) as well as records of all operational expenditures and costs incurred by the permittee in accordance with generally accepted accounting practices and standards typically applicable to business records. Such ledger shall be made available to the City for inspection during business hours upon reasonable notice by the City Manager or designee.

2. Annual audit. On an annual basis, each owner and operator shall submit to the City a financial audit of the business's operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager or designee.

3. Registry of owners, operators and employees. Each owner and 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 anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents, and volunteers employed or otherwise engaged by the commercial cannabis business. The registry required by this paragraph shall be provided to the City Manager or designee upon request.

a. A commercial cannabis business shall notify the Chief of Police or designee within three days of any proposed staffing changes. Potential new employees shall be subject to the same requirements of the initial proposal process and may not commence work until authorized by the Chief of Police or designee.

4. Persons served at location. Each commercial cannabis business shall maintain a record of all persons, patients, collectives, and primary caregivers served by the commercial cannabis business, for a period of no less than that specified in MAUCRSA.

5. Inventory control. 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 purchase as set forth MAUCRSA. Each commercial cannabis business shall demonstrate to the City Manager or designee compliance with the state's track and trace system for cannabis and cannabis products, as soon as it is operational.

a. The commercial cannabis businesses shall notify the City Manager or designee of significant discrepancies identified between inventory records and inventory within 72 hours of discovery of the discrepancy.

O. Inspections. To the extent permissible by law, the City Manager, Police Department, Community and Economic Development Department, or Finance Department shall have the right to enter and inspect any commercial cannabis business, or delivery vehicle during regular business hours, with or without notice, for the purpose of ensuring compliance with the regulations of this Chapter, provided that any such entry and inspection shall be conducted in a reasonable manner.

1. Peace officers, whether in plain clothes or uniform, have the right to visit and inspect any commercial cannabis business or delivery vehicle at any time during business hours without a search warrant, upon presentation of appropriate credentials. This includes inspection of all areas of the business premises or vehicle, including, but not limited to sales areas, back-of-house areas, store rooms, offices, closed or locked cabinets, safes, kitchens, and appurtenant buildings.

2. It is unlawful for any person having responsibility over the operation of a cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct a lawful inspection and review records, management inventory systems, point of sale software, recordings or other documents required to be maintained by a cannabis business under this Chapter. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this Chapter.

P. Regular meetings. The commercial cannabis business shall schedule and be available for an in-person meeting with the City Manager or designee not less than once every 180 days. These meetings shall be used to discuss ongoing operation of the commercial cannabis business and any modifications to the operating permit necessary to maintain peace, order, and welfare of the public. The City Manager or designee may waive these meetings at their discretion.

Q. Urgent meetings. A commercial cannabis business shall notify the Chief of Police or designee within three days of receiving any notices of violation or other corrective action ordered by a state agency or other local licensing authority, and shall provide copies of relevant documents.

R. Billboards prohibited. Commercial cannabis businesses are prohibited from the use of billboards within the City to advertise.

S. Temporary events prohibited. Commercial cannabis businesses are prohibited from commercial activity at temporary events, including, but not limited to, County fairs, concerts, conventions, festivals, and parades.

The performance standards listed above apply to all commercial cannabis uses. In addition, the following operating requirements shall apply to each specific use noted below.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1454, § III, 3/6/2024)

A. Except as otherwise provided by City Council resolution, the following types and number of cannabis businesses are permitted in the City:

1. Dispensary or retail cannabis stores—maximum of two.

2. Manufacturing—maximum of one.

3. Distribution—maximum of one.

4. Testing laboratory—maximum of one.

5. Non-storefront retail business—maximum of one.

B. This Section is only intended to establish a maximum number of commercial cannabis businesses that may be issued CCOPs to operate in the City under each category. Nothing in this Chapter creates a mandate that the City Council must issue any or all of the CCOPs if it is determined that, (i) the proposers do not meet the standards which are established in the proposal requirements and/or, (ii) it is otherwise not in the best interests of the City to issue any or all of the potential number of CCOPs.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1454, § III, 3/6/2024)

In addition to the regulations listed in Section 5.29.150, Performance Standards for all Commercial Cannabis Businesses, and all applicable state regulations; the following regulations specifically apply only to retail or dispensary uses:

A. Hours of operation. Commercial cannabis retail uses shall not be open to the public and shall not conduct retail sales or deliveries before 9:00 a.m. or after 9:00 p.m. on any day of the week.

B. Amount of product allowed. Retailers may have in the retail sales area of their facility only that quantity of cannabis and cannabis products needed to meet daily demand for on-site sales. Additional product sufficient to meet weekly demand may be stored on the premises in a secured, locked area to which customers, vendors, and visitors shall not have access.

C. Method of sale. Sales may only occur in the retail area of the permitted facility. Off-site sales and sales at drive-through windows are prohibited.

D. Restrooms. If customers are allowed to access restrooms, they must be located only adjacent the lobby entrance and outside the limited access area of the retail facility. Under no circumstances should restrooms be immediately adjacent the retail sales area.

E. Limited access areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals on-site for a business purpose (other than a retail purchase) that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the Chief of Police or the Community and Economic Development Director or designees upon request.

F. Distances between retail uses. Dispensaries shall be 1,000 feet apart from each other, as measured between the property lines of each use. The distances set forth in this Section shall be measured as a straight line, without regard to intervening structures or objects.

G. Health information. Signage detailing relevant health information of cannabis consumption shall be affixed to an interior wall or to a free-standing sign within the retail area, in such a manner that such information is readily visible by customers and free of obstructions. The signage shall be reviewed and approved by the City Manager or designee.

H. On-site consumption prohibited. On-site consumption of cannabis, whether by smoking, vaping, or the use of edibles, is prohibited, except in cannabis consumption lounges.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1454, § III, 3/6/2024)

In addition to the regulations listed in the Section 5.29.150, Performance Standards for all Commercial Cannabis Businesses, and all applicable state regulations; the following regulations specifically apply only to distribution uses:

A. No storage or distribution of Non-Cannabis Goods on Licensed Premises. A distributor shall not store non-cannabis goods or non-cannabis accessories that are to be sold to another party on any licensed premises. Additionally, a distributor shall not distribute non-cannabis goods or non-cannabis accessories at a licensed premise. For the purposes of this Section, non-cannabis goods are any goods that do not meet the definition of cannabis goods as defined in Title 16 of the California Code of Regulations, Section 5000(c).

B. Each batch shall be tested. After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor's licensed premises to select a representative sample for laboratory testing.

C. Batches shall be stored separately and distinctly. A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor's premises.

D. Batch size shall meet state law. The distributor shall ensure that the batch size from which the sample is taken meets the requirements of state law, specifically the testing provisions within the California Code of Regulations.

E. Batch sampling shall be monitored and recorded. A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded, and the recording kept available to state and local authorities for a minimum of 180 days, pursuant to Title 16, Section 5305 of the California Code of Regulations.

F. Transportation of batch contingent on testing and certification. A distributor shall not transport cannabis or cannabis products to a licensed retail facility unless and until it has verified that the cannabis or cannabis products have been tested and certified by a testing lab as being in compliance with state health and safety requirements pursuant to Title 16, Sections 5705, 5710 and 5714 of the California Code of Regulations.

G. Proof of bond required. Any cannabis distribution facility shall provide proof of a bond of at least $5,000.00 to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements or cannabis or cannabis products rejected by testing.

H. Inspection by fire department shall be allowed. The distributor must allow inspections to be done by the Contra Costa County Fire Chief at any time during regular business hours from 10:00 a.m. to 8:00 p.m.

I. Labeling of each container in batch required. A distributor shall ensure a label with the following information is physically attached to each container of each batch:

1. The manufacturer or cultivator's name and license number;

2. The date of entry into the distributor's storage area;

3. The unique identifiers and batch number associated with the batch;

4. A description of the cannabis goods with enough detail to easily identify the batch; and

5. The weight of or quantity of units in the batch.

J. Cannabis shall be stored inside. A distributor shall store cannabis goods in a building designed to permit control of temperature and humidity and shall prevent the entry of environmental contaminants such as smoke and dust. A distributor may not store cannabis goods outdoors.

K. Personnel rooms shall be separate from storage areas. Employee breakrooms, eating areas, changing facilities, and bathrooms shall be completely separated from storage areas.

L. Loading and unloading of cannabis shall be in secure area. All loading and unloading activities shall take place within a secured area.

(Ord. No. 1421, § 2, 4/3/2019)

In addition to the regulations listed in the Section 5.29.150, Performance Standards for all Commercial Cannabis Businesses, and all applicable state regulations; the following regulations specifically apply only to testing laboratory uses:

A. Conduct of testing shall be pursuant to state law. Testing laboratories shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100 and shall be subject to state and local law. Each testing lab shall be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same.

B. Conduct of testing shall be pursuant to general requirements for competence. Testing laboratories shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.

C. Testing laboratory shall be accredited. All cannabis testing laboratories performing testing shall obtain and maintain ISO/IEC 17025 accreditation as required by the Bureau of Cannabis Control.

D. Destruction of batch may be required. Testing labs shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the Bureau unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the Bureau.

E. Employee shall transport sample to testing laboratory. Each operator shall ensure that a testing laboratory employee takes the sample of cannabis or cannabis products from the distributor's premises for testing required by state law and that the testing laboratory employee transports the sample to the testing laboratory.

F. Testing laboratory shall only test cannabis from state licensee. Except as provided by state law, a testing laboratory shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with state law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol.

G. Testing laboratory shall only test cannabis from patients or caregivers pursuant to certain restrictions. A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient's valid physician's recommendation for cannabis for medicinal purpose. A testing laboratory shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received.

H. Testing laboratory shall not hold interest in other cannabis business. The owners and employees of the testing laboratory may not hold an interest in any other cannabis business except another testing business.

I. Inspection by fire department shall be allowed. The testing laboratory must allow inspections to be done by Contra Costa County Fire Chief at any time during regular business hours from 10:00 a.m. to 8:00 p.m.

(Ord. No. 1421, § 2, 4/3/2019)

In addition to the regulations listed in Section 5.29.150, Performance Standards for all Commercial Cannabis Businesses, and all applicable state regulations; the following regulations specifically apply only to manufacturing uses:

A. No additional manufacturing activity allowed. No additional manufacturing activity can be conducted without applying for and receiving written permission from the City for that additional activity, pursuant to Section 5.29.270, Modifications of Commercial Cannabis Operators Permit.

B. Inspection by fire department shall be allowed. The testing laboratory must allow inspections to be done by the Contra Costa County Fire Chief at any time during regular business hours from 10:00 a.m. to 8:00 p.m.

C. Cannabis shall be manufactured inside. All cannabis manufacturing activities shall occur indoors within a fully enclosed and secured structure.

D. Amount of compressed gas limited. Any compressed gases used in the manufacturing process shall not be stored on any property within the City in containers that exceeds the amount which is approved by the Contra Costa County Fire Chief and authorized by the regulatory permit. Each site or parcel shall be limited to a total number of tanks as authorized by the Contra Costa County Fire Chief on the property at any time.

E. Various manufacturing methods allowed. Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, ethanol and other methods without employing solvents or gases to create kief, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.

F. Additional restriction of carbon dioxide gas usage.

1. If an extraction process uses a professional grade closed loop Carbon Dioxide (CO2) gas extraction process system, every vessel must be certified by the manufacturer for its safe use.

2. The CO2 must be of at least 99 percent purity.

3. Closed loop systems for compressed gas extraction systems must be manufactured and bear a permanently affixed and visible serial number.

4. Certification from an engineer, licensed by the State of California, or by a certified industrial hygienist, must be provided to the City Manager for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:

a. The American Society of Mechanical Engineers (ASME);

b. American National Standards Institute (ANSI);

c. Underwriters Laboratories (UL); or

d. The American Society for Testing and Materials (ASTM).

5. The certification document must contain the signature and stamp of the professional engineer or industrial hygienist and serial number of the extraction unit being certified.

6. Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes.

7. Cannabis manufacturing facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.

8. Cannabis manufacturing facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.

9. Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely.

(Ord. No. 1421, § 2, 4/3/2019)

In addition to the regulations listed in Section 5.29.150, Performance Standards for all Commercial Cannabis Businesses, 5.29.230, Cannabis Deliveries and all applicable state regulations; the following regulations apply to non-storefront retail business uses:

A. Limit to the amount of product. Non-storefront retail business may only have a quantity of cannabis and cannabis products on-site that is reasonably anticipated to meet the weekly sales demand.

B. No signage. No signage of any kind other than the address shall be allowed on the exterior portion of the premises or on any signage that is visible from the public right-of-way.

C. Limited access areas. The entire premises of a non-storefront retail business is a limited-access area and only authorized individuals may be permitted to enter the limited-access areas. For purposes of this Section, authorized individuals include individuals employed by the commercial cannabis business as well as any outside vendors, contractors, or other individuals (other than a retail purchaser) who must access the limited-access areas in order to conduct lawful business activities with the non-storefront retail business.

All individuals granted access to the limited access area shall be at least 21 years of age, and if not an employee, shall be escorted at all times by an employee of the permittee. A non-storefront retail business shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the Chief of Police or the Community and Economic Development Director upon request.

D. Must verify customer is legally allowed to receive cannabis. Non-storefront retail business shall only deliver cannabis or cannabis products to persons 21 years of age or older, or a person 18 years of age or older who possesses a physician's recommendation for cannabis medical use only.

(Ord. No. 1421, § 2, 4/3/2019)

A. Permitted by-right locations, Only. All commercial cannabis businesses, except for out-of-City commercial cannabis businesses issued cannabis delivery permits, must be located in areas of the City in which they are permitted by-right to be located, pursuant to the zoning regulations in place at the time of their original application. Please see Title 22 (Zoning Ordinance) for additional information.

B. Sensitive uses. In addition to having to be located in the designated zoning district restrictions listed above, commercial cannabis businesses must be at least 900 feet from the following uses:

1. Schools. Any school providing instruction in kindergarten or any grades 1 through 12, (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12) that is in existence at the time the commercial cannabis business's proposal is first submitted to the City.

2. Daycare. Any commercial daycare center licensed by the state, city or county that is in existence at the time the commercial cannabis business's proposal is first submitted to the City.

3. Youth center. Any public or private entity that is exclusively used to host recreational or social activities for minors that is in existence at the time the commercial cannabis business's proposal is first submitted to the City.

4. Parks, playgrounds, and libraries. Any public park, playground, or library, whether maintained by the City, State, or Federal Government, that is in existence at the time the commercial cannabis business's proposal is first submitted to the City.

The distances set forth in this Section shall be measured as a straight line, without regard to intervening structures or objects. Distances between commercial cannabis businesses and any existing sensitive receptors shall be measured from the property line of the property containing the sensitive receptor to the property line of the lot on which the commercial cannabis business is located. This measurement is in compliance with the Business and Professions Code Section 26054(b).

C. Non-conforming locations. Commercial cannabis businesses which become legally-non-conforming after the issuance of a commercial cannabis operators permit applicable to that business due to:

1. Their underlying zoning or general plan land use designation changing in such a way as to prohibit that use, or

2. One or more of the uses identified in Section 5.29.220.B. above locating within 900 feet of the commercial cannabis business, may continue to operate as long as the business's commercial cannabis operators permit remains valid, and the business otherwise complies with this Chapter and the City's zoning code's nonconforming use provisions.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1454, § III, 3/6/2024)

Deliveries within the City shall only be permitted by persons that have a cannabis delivery permit issued by the Chief of Police or designee. Any other cannabis delivery is prohibited. This permit can be issued either to a business located outside the City or can be included as part a commercial cannabis operators permit issued to a cannabis retail store or dispensary, or to a non-storefront retail business (collectively, these businesses shall be sometimes referred to herein as "cannabis delivery businesses").

A. Application. All the information and stipulations listed below shall be supplied by the operator of a cannabis delivery business to the Chief of Police or designee. No commercial cannabis business may deliver cannabis or cannabis products to any person situated within the City's limits until and unless the Chief of Police or designee issues a cannabis delivery permit to that business. If the permit is denied, the applicant may appeal the decision of the Chief of Police to the City Council, pursuant to Section 5.29.280, Appeals.

B. Fees. An administrative review fee deposit as adopted in the master fee schedule shall submitted to the City along with the cannabis delivery permit to be used to cover the cost of all needed staff time, consultant costs and other resources utilized in vetting the cannabis delivery permit.

C. Cannabis delivery permits shall be subject to the following standards:

1. Each cannabis delivery business owner, as well as each employee shall submit specific personal information including names, birth dates, addresses, social security numbers, relevant criminal history, relevant work history, names of businesses owned or operated by the applicant within the last ten years, investor or partner information, and electronic fingerprint images and related information as required by the Chief of Police or designee for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests. A mandatory criminal background check will be conducted. All confidential information shall be held in a confidential file, exempt from disclosure as a public record pursuant to Government Code Section 7922.

2. Cannabis delivery businesses shall provide to the Chief of Police or designee a list of all vehicles to be used for delivery of cannabis and cannabis products, including each vehicle's make, model, year, license plate number and vehicle identification number. The cannabis delivery business shall update the list prior to any vehicle being added to or removed from service and provide that updated list to the Chief of Police or designee on the same day the vehicle change is made.

3. Cannabis delivery businesses shall adhere to best practices in terms of handling currency as established by the Chief of Police.

4. Cannabis delivery businesses shall ensure that all delivery vehicles shall be in possession of a copy of all licenses and permits required by the State of California and the City.

5. All vehicles used by cannabis delivery businesses to deliver cannabis and/or cannabis products shall not be marked or otherwise identified with advertisements, the name of the cannabis delivery business, or any other distinctive markings associated with cannabis.

6. Cannabis delivery businesses shall only deliver cannabis directly to the residence or business address of the designated recipient; deliveries to any other location are prohibited.

7. Cannabis delivery businesses shall deliver cannabis or cannabis products only between the hours of 8:00 a.m. and 8:00 p.m.

8. Cannabis delivery businesses shall only deliver cannabis or cannabis products to persons 21 years of age or older, or a person 18 years of age or older who possesses a physician's recommendation for cannabis medicinal use only.

9. A City of Martinez Commercial Cannabis Operating Permit for non-storefront retail is required for any and all adult-use cannabis businesses delivering within City limits. This applies to adult-use cannabis deliveries originating both within and outside the City.

10. Cannabis deliveries are prohibited from terminating at schools, parks, playgrounds, daycare centers, residences located on a school campus, workplaces involving trucking or transportation, or transit centers.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1454, § III, 3/6/2024)

Renewal of commercial cannabis operators permit is subject to the following standards:

A. A commercial cannabis operators permit renewal application and any applicable fees shall be submitted to the City of Martinez at least 60 calendar days prior to the expiration date of the commercial cannabis operators permit.

B. The City Manager shall have the authority to declare any commercial cannabis operators permit expired for which a complete permit renewal application has not been timely submitted in accordance with this Section.

C. The renewal application shall contain all of the information required for a new proposal.

D. After the City Manager has determined a CCOP to have expired, the City may open applications for new conditional certificates for the type of cannabis business permitted by the expired CCOP, and the commercial cannabis business or owner that held the expired commercial cannabis operators permit shall have to file a new application for a conditional certificate if [they] wish to re-establish operations of the affected business.

E. Permit renewal shall be subject to the laws and regulations in place at the time of renewal, and may require submittal of additional information and/or fees to ensure applicable laws and regulations are met.

F. No person or entity shall have any entitlement or vested right to have a commercial cannabis operators permit or the renewal of an existing commercial cannabis operators permit under this Chapter.

G. The City Manager may refuse to renew a commercial cannabis operators permit or may revoke or suspend an existing commercial cannabis operators permit on the grounds that the commercial cannabis business has failed to comply with its commercial cannabis operators permit conditions or the requirements of this Chapter, or its state license has been revoked or suspended.

H. The City Manager may additionally suspend or revoke or refuse to renew a commercial cannabis operators permit for any of the following causes:

1. Failure to comply with the commercial cannabis operators permit conditions.

2. Failure to comply with the plans and materials upon which the commercial cannabis operators permit's approval was based.

3. Conviction of an owner or an employee who makes operational or management decisions that directly impact the business of a felony or criminal offense that is related to the qualifications, functions, or duties of the owner or employee when acting as an employee or operator of the commercial cannabis business after a commercial cannabis operators permit has been granted.

4. Revocation of a state license or any cause that would allow the state to deny or revoke a state license under MAUCRSA.

5. Failure to pay any applicable City taxes or fees after a reasonable period following notice of delinquency.

6. Violation of any provisions of MAUCRSA or any provisions of this Chapter.

7. Violation of any other City statutes necessary to maintain the health, safety, and general welfare of the public.

8. As to renewals only, the commercial cannabis business has not been in regular and continuous operation during the four months immediately prior to the date the renewal application is filed.

9. Violation of any other City statutes necessary to maintain the health, safety, and general welfare of the public.

I. Additionally, when continued operation of a commercial cannabis business is determined to constitute an imminent threat to public health, safety or welfare, the City Manager may take immediate action to temporarily suspend the business' commercial cannabis operators permit issued by the City and all activities undertaken pursuant to that commercial cannabis operators permit, pending a hearing before the City Manager.

(Ord. No. 1421, § 2, 4/3/2019)

A. When the City Manager concludes that grounds for denial, suspension, revocation or refusal to renew or approve the transfer or modification of a commercial cannabis operators permit exist, he/she shall serve the commercial cannabis operators permit holder, either personally, by certified U.S. mail or overnight delivery service that provides tracking, addressed to the business or residence address of the owner, with a notice of his or her decision pursuant to this Section. This notice shall state the reasons for the proposed action, the effective date of the decision, the right of the owner to appeal the decision, and that the decision will be final if no appeal is filed within the time permitted.

B. Any decision of the City Manager to revoke, refuse to renew (except as noted in Section 5.29.240) or expire a commercial cannabis operators permit may be appealed pursuant to Section 5.29.240. The commercial cannabis business shall remain closed until or unless the action of the City Manager is appealed to the City Council pursuant to Section 5.29.240.

(Ord. No. 1421, § 2, 4/3/2019)

A. The owner of a commercial cannabis business permit shall not transfer ownership or control of the permit to another person or entity ("transferee") unless and until the transferee obtains written approval from the City Manager or stating that the transfer of the permit to the transferee has been approved and that the transferee is the permittee. Such an approval may be obtained only if the transferee files an application with the City Manager or in accordance with all provisions of this Chapter (as though the transferee were applying for an original commercial cannabis business permit) accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as an original application fee), and the City Manager determines in accordance with this Section that the transferee passed the background check required for permittees and meets all other requirements of this Chapter.

B. Commercial cannabis operators permit's issued through the grant of a transfer by the City Manager shall be valid for the remainder of the time left on the commercial cannabis operators permit. Before the transferee's permit expires, the transferee shall apply for a renewal permit in the manner required by this Chapter.

C. Changes in ownership of a permittee's business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than five percent of the original ownership), must be approved by the City Manager or through the transfer process contained in Section A, above. Failure to comply with this provision is grounds for permit revocation.

D. A permittee may change the form of its business entity without applying to the City Manager for approval of the transfer of the permit to the new business entity, provided that either:

1. The membership of the new business entity is substantially similar to the original permit holder business entity (at least five percent of the membership is identical), or

2. If the original permittee is an unincorporated association, mutual or public benefit corporation, or a consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA provided that the members of the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the original City proposal) of the original permittee entity are the same as the new business entity.

E. Although an approved transfer of the CCOP is not required in the two circumstances described in subsection D, above, the permit holder is required to notify the City Manager in writing of the change within ten days of the effective date if the change. Failure to comply with this provision is grounds for permit revocation.

F. No commercial cannabis operators permit may be transferred when the City Manager has notified the permittee that the permit has been or may be suspended or revoked.

G. Any attempt to transfer a commercial cannabis operators permit either directly or indirectly in violation of this Section is hereby declared null and void, and such a purported transfer shall be deemed a ground for revocation of the commercial cannabis operators permit.

(Ord. No. 1421, § 2, 4/3/2019)

A. Any holder of a commercial cannabis operators permit may request minor modifications to any aspect or condition of the commercial cannabis operators permit or of the premises in which the commercial cannabis business is operating The City Manager shall determine whether the modification is minor or major. The City Manager may approve or deny minor modifications. The City Manager's decision shall be in writing and be forthwith delivered to the holder of the commercial cannabis operators permit. No minor modification shall be allowed to take effect unless or until it is approved by the City Manager. If the modification is approved by the City Manager, the owner shall post a copy of the City Manager's decision next to the commercial cannabis operators permit which is posted in a conspicuous place in the premises of the commercial cannabis business.

B. Any holder of a commercial cannabis operators permit may request major modifications to any aspect or condition of the commercial cannabis operators permit or of the premises in which the commercial cannabis business is operating. The City Manager shall determine whether the modification is minor or major.

1. A major modification includes the enlargement or expansion of the floor area, size, footprint or of the height of the premises in which the business is being conducted. A major modification also includes any or all of the changes, alterations or modifications specified in 4 Cal. Code Regs. § 15027(b)—(d), as amended from time to time.

2. A holder of a commercial cannabis operators permit desiring to make a major modification as described in this Section must submit to the City Manager a proposal to amend the CC and the CCOP containing the information set out in Section 5.29.100, to the extent the information is relevant to the modification requested. The City Manager shall have 30 calendar days to determine whether the proposal is complete, and if the City Manager determines the proposal is incomplete, shall, within said 30 days, deliver a written notice to the holder of the commercial cannabis operators permit advising the holder of same. The holder of the commercial cannabis operators permit shall have 30 days to submit the additional information required to make the proposal complete and if the holder fails to timely submit said additional information, it will conclusively be presumed that the holder has withdrawn its modification proposal. If the holder of the commercial cannabis operators permit timely submits additional information which the holder believes makes the proposal complete, the City Manager will again have 30 days to determine whether the proposal is complete and shall advise the holder of the City Manager's decision within that 30-day period. The same time periods and consequences for failing to timely supply additional information shall apply to the holder's responses thereafter.

3. The City Manager shall deliver the complete proposal to amend the CC and CCOP to the PRC pursuant to Section 5.29.110 for the PRC to rate and assess the merits of the proposal. The PRC's rating shall be forwarded to the City Council along with the PRC's recommendation as to whether or not an amendment to the CC as requested by the proposer should be granted, and if granted, under what conditions.

4. The City Council shall hold a public hearing, noticed as such in accordance with regulations promulgated by the City Manager, to determine whether or not to grant the amendment to the CC described in the proposal. Said proceedings shall be governed by the applicable provisions of Section 5.29.120. The City Council's decision shall be in writing and shall be final.

a. Upon being granted an amendment to a conditional certificate, the proposer(s) shall be eligible to apply for and take the necessary steps to obtain the planning entitlements and building permits necessary to construct, install and/or engage in the activities identified in their proposal. This includes any required environmental review pursuant to the California Environmental Quality Act (CEQA).

b. From the date the City Council awards an amendment to a conditional certificate, the proposer shall have up to one year to:

i. Apply for and obtain the necessary planning entitlements; and

ii. Apply for and receive building permit(s) and complete all necessary renovations and/or new construction and secure approval of a final building permit and/or certificate of occupancy; and

iii. Satisfy all of the conditions of approval required and/or included in its amended conditional certificate award and provide proof that all conditions precedent to the issuance of a CCOP have been met. This includes all required legal contracts necessary to secure the proposed public benefit included in the proposal; and

iv. Apply for and be issued a commercial cannabis operators permit.

c. Extensions of this time period beyond one year shall be granted on a case-by-case basis by the City Manager.

5. Prior to commencing any operations or activities permitted under the amended CC granted by the City Council, the proposer must apply for and obtain an amendment to the proposer's CCOP from the City Manager. To receive this ministerial permit, the Proposer must provide proof of the items and matters set forth in Section 5.29.140(B), to the extent applicable. Any amended CCOP granted by the City Manager shall be subject to Chapter 5.29, including but not limited to Sections 5.29.140 and 5.29.150; provided, however, that the effective life of an approved amendment to a CCOP shall be coterminous with the effective life of the CCOP it amends.

C. The duration of the commercial cannabis operators permit shall not change as a result of any modification or amendment to that permit.

D. All modifications and amendments to a commercial cannabis operator's permit granted under this Section must comply with Chapter 5.29.

E. Any decisions of the City Manager made pursuant to or under this Section 5.29.270 are appealable to the City Council pursuant to Section 5.29.280.

F. The costs the City incurs in processing and acting upon any request for a modification or amendment to a CCOP shall be fully paid for by the proposer/requestor, and any application or request for a modification or amendment to an existing Commercial cannabis operators permit shall be accompanied by an administrative review fee deposit as adopted in the master fee schedule to be used to cover the cost of all needed staff time, consultant costs and other resources utilized in vetting the proposal.

(Ord. No. 1421, § 2, 4/3/2019; Ord. No. 1444, § 1, 1/18/2023)

A. The right to appeal a decision of the Proposal Review Committee, and/or City Manager and/or the Police Chief pursuant to this Chapter shall terminate upon the expiration of ten calendar days from the date of the:

1. Deposit of the PRC's or City Manager's or Police Chief's decision, as the case may be, in the U.S. mail, or

2. Deposit of the PRC's or City Manager's or Police Chief's decision, as the case may be, with an overnight delivery service.

B. All requests for appeals shall be submitted in writing, with appropriate fee, to the City Clerk and set forth the reasons why the decision being appealed was improper. In order to be timely, the written appeal must be in the possession of the City Clerk before the expiration of said ten calendar day period.

1. At the time of filing the appeal the appellant shall pay the designated appeal fee, established by resolution of the City Council.

2. Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Council. The City Council shall hear the matter de novo, and shall conduct the hearing pursuant to the procedures set forth by the City.

3. The appeal shall be held within a reasonable time after the filing the appeal, but in no event later than 90 days from the date of such filing. The City shall notify the appellant of the time and location of the hearing at least ten days prior to the date of the hearing. In those cases, where the City Manager has declared a CCOP expired, where the City Manager has refused to renew a CCOP, or where the City Manager has revoked or suspended a CCOP, the affected commercial cannabis business shall not operate in any fashion while awaiting the outcome of the appeal. In the case of commercial cannabis delivery permit, the affected commercial cannabis business shall not operate in any fashion while awaiting the outcome of the appeal.

4. At the hearing, the appellant may present any information the appellant deems relevant to the decision under appeal.

5. At the conclusion of the hearing the City Council may affirm, reverse or modify the decision of the PRC, the City Manager or the Police Chief. The decision of the City Council shall be final.

(Ord. No. 1421, § 2, 4/3/2019)

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a commercial cannabis operators permit pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval and issuance of any commercial cannabis operators permit, the proposer and/or owner shall be required to execute an agreement, in a form approved by the City Attorney, agreeing to:

A. Indemnify, defend (at the proposer's and/or owner's sole cost and expense), and hold the City of Martinez, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, expenses (including attorney's and expert witness' fees) losses and liabilities of any kind which arise out of, or which are in any way related to, the City's issuance of the commercial cannabis operators permit, the City 's decision to approve the operation of the commercial cannabis business or activity, the process used by the City in making its decision, the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its owners, officers, employees or agents, and/or the commercial cannabis business' operations, acts and/or omissions.

B. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager.

C. Reimburse the City of Martinez for all costs and expenses, including, but not limited to, legal fees and costs and court costs, which the City of Martinez may be required to pay as a result of any legal challenge related to the City's approval of the proposer's and/or owner's commercial cannabis operators permit, or related to the City's approval of a commercial cannabis activity. The City of Martinez may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.

(Ord. No. 1421, § 2, 4/3/2019)

A. Any violation of a term, condition, or the approved plans and specifications of any commercial cannabis operators permit issued pursuant to this Chapter shall constitute a violation of this Chapter.

B. 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 of Martinez.

C. Each and every violation of this Chapter shall constitute a public nuisance.

D. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief. In the case of any violation of this Chapter, (a) any permit issued pursuant to this Chapter to the violator shall be deemed null and void, and (b) the violator shall be obligated to disgorge and pay to the City any monies unlawfully obtained, costs of abatement, costs of investigation, and attorney fees, with the City retaining the right to pursue any other relief or remedy available at law or in equity therefor.

E. The City of Martinez 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 business or persons related to, or associated with, the business' commercial cannabis activity.

F. Any violation of a term, condition, or the approved plans and specifications of any commercial cannabis operators permit issued pursuant to this Chapter shall constitute a violation of this Chapter.

G. 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 of Martinez.

H. Each and every violation of this Chapter shall constitute a public nuisance.

I. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief. In the case of any violation of this Chapter, (a) any permit issued pursuant to this Chapter to the violator shall be deemed null and void, and (b) the violator shall be obligated to disgorge and pay to the City any monies unlawfully obtained, costs of abatement, costs of investigation, and attorney fees, with the City retaining the right to pursue any other relief or remedy available at law or in equity therefor.

J. The City of Martinez 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 business or persons related to, or associated with, the business' commercial cannabis activity.

(Ord. No. 1421, § 2, 4/3/2019)

Each and every violation of the provisions of this Chapter may in the discretion of the District Attorney or City Attorney be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed $1,000.00 or imprisonment in the county jail for a period of not more than six months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense.

(Ord. No. 1421, § 2, 4/3/2019)

Remedies. In addition to the nonrenewal, suspension, and revocation provisions in this Chapter and any and all available remedies under the law, the following remedies shall be available to the City or other enforcement agency regarding violations of this Chapter:

A. Administrative enforcement.

B. Civil enforcement.

C. Criminal enforcement.

In any enforcement action brought pursuant to this Section, whether by administrative or judicial proceedings, each person who causes, permits, suffers, or maintains the unlawful cannabis business shall be liable for all costs incurred by the City, including, but not limited to, administrative costs, and any and all costs incurred to undertake, or to cause or compel any responsible person to undertake, any abatement action in compliance with the requirements of this Section. In any action by the agency having jurisdiction to abate unlawful cannabis uses under this Section, whether by administrative or judicial proceedings, the prevailing party shall be entitled to a recovery of the reasonable attorney's fees incurred. Recovery of attorneys' fees under this Section shall be limited to those actions or proceedings in which the City elects, at the initiation of that action or proceeding, to seek recovery of its own attorney's fees. In no action, administrative proceeding, or special proceeding shall an award of attorneys' fees to a prevailing party exceed the amount of reasonable attorney's fees incurred by the City in the action or proceeding.

(Ord. No. 1421, § 2, 4/3/2019)