Chapter 5.78 — COMMERCIAL CANNABIS ACTIVITY

It is the purpose and intent of this chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (hereinafter "MAUCRSA") to accommodate the needs of medically ill persons that require treatment with medicinal cannabis as recommended by their health care provider, and to provide access to adult-use cannabis for persons over the age of 21 as authorized by the Control, Regulate and Tax Adult Use of Marijuana Act passed by California voters in 2016 (now the MAUCRSA), while imposing sensible regulations on the use of land to protect the city's residents, neighborhoods, and businesses from disproportionately negative secondary impacts that generally arise from such uses. As such, it is the purpose and intent of this chapter to regulate the cultivation, processing, manufacturing, testing, sale, delivery, distribution, and transportation of medicinal and adult-use cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City of Pasadena and to enforce rules and regulations consistent with state law. It is the further purpose and intent of this chapter to require all cannabis operators to obtain and renew annually a permit to operate within the City of Pasadena. Nothing in this chapter is intended to authorize the possession, use, or provision of cannabis for purposes that violate state or federal law. The provisions of this chapter are in addition to any other permits, licenses, and approvals which may be required to conduct business in the city, and are in addition to any permits, licenses, and approvals required under state, local, or other law.

(Ord. No. 7326, § 1, 6-5-2018)

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act, and any subsequent state legislation and/or regulations regarding the same, the City of Pasadena is authorized to adopt ordinances that establish standards, requirements, and regulations for the licensing and permitting of commercial medicinal and adult-use cannabis activity. Any standards, requirements, and regulations regarding health and safety, testing, 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 Pasadena to all commercial cannabis activity.

(Ord. No. 7326, § 1, 6-5-2018)

Except as specifically authorized in this chapter, the commercial cultivation, processing, manufacturing, testing, sale, delivery, distribution, or transportation (other than as provided under Bus. & Prof. Code § 26090(e)) of cannabis or cannabis products is expressly prohibited in the City of Pasadena.

(Ord. No. 7326, § 1, 6-5-2018)

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

(Ord. No. 7326, § 1, 6-5-2018)

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.

A.

"Applicant" means an owner applying for a commercial cannabis permit pursuant to this chapter.

B.

"Batch" means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:

"Harvest batch" means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals.

"Manufactured cannabis batch" means either of the following:

a.

An amount of cannabis concentrate or extract produced in one production cycle using identical input materials, extraction methods, and standard operating procedures, and intended to have uniform character and quality; or

b.

An amount of a type of manufactured cannabis produced in one production cycle using identical formulation and standard operating procedures that is intended to have uniform character and quality.

C.

"Bureau" means the California 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.

D.

"Business license" means a license issued by the City of Pasadena that allow individuals or companies to conduct business within the city.

E.

"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" also means marijuana as defined by Section 11018 of the Health and Safety Code. "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. "Cannabis" does not mean "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.

F.

"Cannabis concentrate" means manufactured 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. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

G.

"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. "Cannabis product" also means marijuana products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medical cannabis products.

H.

"Canopy" means all areas occupied by any portion of a cannabis plant whether contiguous or noncontiguous on any one site. When plants occupy multiple horizontal planes (as when plants are placed on shelving above other plants) each plane shall be counted as a separate canopy area.

I.

"Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code.

J.

"City" means the City of Pasadena, a California Charter City.

K.

"Commercial cannabis activity" means the cultivation, possession, manufacture, distribution, processing, storing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products for commercial purposes as provided for in this chapter.

L.

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

M.

"Commercial cannabis permit" means a regulatory permit issued by the City of Pasadena pursuant to this chapter to a commercial cannabis business.

N.

"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis, and includes, but is not limited to, operation of a nursery.

O.

"Cultivation site" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

P.

"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.

Q.

"Day care center" has the same meaning as in Section 1596.76 of the Health and Safety Code.

R.

"Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned, leased, or controlled by the retailer.

S.

"Dispensing" means any activity involving the retail sale of cannabis or cannabis products from a retailer.

T.

"Distribution" means the procurement, sale, and transport of cannabis and cannabis products between state licensees.

U.

"Distributor" means a person or entity holding a valid state license and permitted to engage in the business of the distribution of cannabis and cannabis products between state licensed cannabis facilities.

V.

"Dried flower" means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

W.

"Edible cannabis product" means cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Chapter 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

X.

"Greenhouse" means a fully enclosed and legally permitted permanent structure that is clad in transparent material with climate control, such as heating and ventilation capabilities and supplemental artificial lighting, and that uses a combination of natural and supplemental lighting for cultivation.

Y.

"Labeling" means any label or other written, printed, or graphic matter upon a cannabis product, upon its container.

Z.

"License, state" means a state license issued under the MAUCRSA, and can include both an A-license and an M-license.

AA.

"Licensee, state" means any person holding a license under the MAUCRSA, regardless of whether the license held is an A- license or an M-license, and includes the holder of a testing laboratory license.

BB.

"Licensing authority" means the state agency responsible for the issuance, renewal, or reinstatement of the state license, or the state agency authorized to take disciplinary action against the state licensee.

CC.

"Limited-access area" means an area in which cannabis and cannabis products are stored or held and are only accessible to the owner, operator and cannabis facility authorized personnel.

DD.

"Live plants" means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.

EE.

"Local jurisdiction" means a city, county, or city and county.

FF.

"Lot" means a batch or a specifically identified portion of a batch.

GG.

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

HH.

"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.

II.

"Manufacturer" means a state licensee that 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 relabels its container.

JJ.

"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.

KK.

"Operation" means any act for which licensure is required under the provisions of this chapter, or any commercial transfer of cannabis or cannabis products.

LL.

"Owner" means any of the following:

All persons identified as an "owner" on any permit, license, or other authorization issued by a state agency or local government which authorizes the persons to establish and operate the cannabis facility.

Any person identified or required to be identified as an "owner" on an application filed with any state agency and any local government, wherein the application requests the privilege to operate the cannabis facility.

If no person under subsection 1 or 2, above, exists:

a.

A person with an aggregate ownership interest of 20 percent or more in the corporate entity, partnership, or other business entity applying for a permit or a permittee, unless the interest is solely a security, lien, or encumbrance.

b.

The chief executive officer of a nonprofit or other entity.

c.

A member of the board of directors of a nonprofit.

d.

An individual who will be participating in the direction, control, or management of the person applying for a permit. A member of the board of directors of a nonprofit.

e.

An individual who will be participating in the direction, control, or management of the person applying for a permit.

MM.

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

NN.

"Patient" or "qualified patient" shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health and Safety Code Section 11362.5.

OO.

"Permittee" means a person who has obtained a commercial cannabis permit from the city to operate a cannabis business.

PP.

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

QQ.

"Person with an identification card" shall have the meaning given that term by California Health and Safety Code Section 11362.7.

RR.

"Physician's recommendation" means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

SS.

"Premises" means the designated structure or structures and land where the commercial cannabis business will be operated. The premises shall be a contiguous area and shall only be occupied by one state licensee unless the operator is granted an M-License and an A-License for the same type of activity and such operation is lawful under state and local laws, rules, and regulations.

TT.

"Retailer" means a commercial cannabis business where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid commercial cannabis business permit from the City of Pasadena authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer.

UU.

"Sell," "sale," and "to sell" include any transaction whereby, for any consideration, title to cannabis or cannabis products are transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a state licensee to the state licensee from whom the cannabis or cannabis product was purchased.

VV.

"Testing laboratory" means a cannabis business that (i) offers or performs tests of cannabis or cannabis products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by any necessary accrediting body that is independent from all other persons involved in the cannabis industry in the state and (v) is registered with any necessary state agency required by law.

WW.

"Transport" means the transfer of cannabis products from the permitted business location of one state licensee to the permitted business location of another state licensee, for the purposes of conducting commercial cannabis activity authorized by MAUCRSA.

(Ord. No. 7326, § 1, 6-5-2018)

No person may operate a commercial cannabis business or engage in commercial cannabis activity within the City of Pasadena including cultivation, processing, manufacturing, testing, sale, delivery, distribution, or transportation of cannabis or a cannabis product unless the person (1) has a valid commercial cannabis permit from the City of Pasadena; (2) has any and all valid state or local permits; and (3) is currently in compliance with all applicable state and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activity, including holding the necessary state licenses to engage in commercial cannabis activity.

(Ord. No. 7326, § 1, 6-5-2018)

A.

The city manager shall promulgate the procedures to govern the application process and the manner in which the decision will ultimately be made regarding the issuance of any commercial cannabis permit, which shall require the city manager to provide detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to each set of review criteria. The city manager or his/her designee shall appoint a selection committee, prepare the necessary forms, administratively approve any necessary rules regarding the application, regulations and processes, solicit applications, conduct initial evaluations of the applicants, and present qualified applications to the selection committee.

B.

At the time of filing, each applicant shall pay an application fee established by resolution of the city council, to cover all costs incurred by the city in the application process.

C.

After the initial review, ranking, and scoring under the review criteria, the selection committee shall make a determination of top applicants in each permit category in accordance with Section 5.78.080.

D.

The city reserves the right to reject any or all applications. The city further reserves the right to request and obtain additional information from any applicant submitting an application. In addition to any other justification provided for a failure to comply with the requirements in this chapter, an application risks being rejected for any of the following reasons:

Application is received after designated time and date.

Application does not contain the required elements, exhibits, nor organized in the required format.

Application is considered not fully responsive.

(Ord. No. 7326, § 1, 6-5-2018)

A.

There shall be an initial 30-day application period to be determined by the city manager or his/her designee. Subsequent application periods shall commence upon certification by the city manager, or his/her designee, that additional cannabis permits are available and shall close 30 days after such certification.

B.

An application selection committee composed of at a minimum 3 individuals shall be appointed by the city manager to review and score each application based on the general criteria listed below. The specific criteria and weighting (points per criteria) for each permit category will be determined prior to the commencement of the initial application period and posted publicly. Each application will be independently scored by the selection committee members.

C.

The city manager shall establish review criteria to rank applications, which shall include, but not be limited to, the following:

Previous experience operating a commercial cannabis business that operated in compliance with all local and state laws and regulations, or experience in a similarly state-regulated activity (e.g., alcohol sales) that was operated in compliance with all local and state laws and regulations.

Demonstrated knowledge of cannabis strains and derivative product offerings.

Employee training, standard operating procedures, online ordering systems, and procedures for providing cannabis to disadvantaged or disabled persons.

Social equity in terms of provision of providing a living wage and employee benefits and compliance with local, state, and federal employee non-discrimination policies.

Security program.

Additional information that demonstrates the ability to operate in a safe and responsible manner in the city.

D.

Prior to scoring applications, the city manager, or his/her designee, shall review applications for general compliance with the Pasadena Municipal Code or any other applicable laws, and shall reject any application which does not meet such requirements. Rejected applications shall not be scored. The city shall also disqualify any application that contains any false or misleading information.

E.

The scores awarded by the application selection committee shall be totaled and averaged for each applicant. The applicants shall then be ranked from highest to lowest based on their scores.

F.

The top applicants in each permit category (or applicants applying for vacated permits) based on points are required to secure a viable business location if one has not been secured and apply to the planning and community development department to obtain any required land use approvals or entitlements for the permittee's location after being notified that their application has been accepted and ranked as one of the top applicants. Land use approvals shall include compliance with all applicable provisions of the California Environmental Quality Act ("CEQA").

G.

The top ranked applicants (in each category) that have obtained land use approvals from the city shall obtain a city business license from the finance department prior to issuance of a commercial cannabis permit by the city.

H.

If any of the top ranking applicants in each permit category has not secured a cannabis permit from the city within 48 months of the city notifying them that they were one of the top ranking applicants, their ability to obtain a cannabis permit shall terminate.

I.

Applicants that have approved permits issued by the city shall obtain a license from the state, as well as any other required local permits from the city (e.g., fire department and/or health department) or other local agencies prior to operating a commercial cannabis business in the city.

J.

Sales of cannabis to a minor or use of a minor to distribute cannabis are disqualifying offenses.

(Ord. No. 7326, § 1, 6-5-2018; Ord. No. 7382, § 4, 11-1-2021; Ord. No. 7393, § 1, 6-13-2022)

At the one year anniversary of the date of the city's issuance of a commercial cannabis permit pursuant to this chapter (or as soon thereafter as the matter may be heard), the city manager shall present to the city council a report of findings on the operation of the commercial cannabis business permitted pursuant to this chapter, and shall make a recommendation regarding any changes to the commercial cannabis permit issued under this chapter.

(Ord. No. 7326, § 1, 6-5-2018)

A person is prohibited from holding or maintaining a commercial cannabis permit in the City of Pasadena if any of the following apply:

A.

The applicant has been denied a permit or state license to engage in commercial cannabis activity, or has had a permit or state license to engage in commercial cannabis activity suspended and not reinstated, or revoked, by any city, county, city and county, or any other state cannabis licensing authority;

B.

The applicant was notified that they were conducting commercial cannabis activity in non-compliance with this chapter or other City of Pasadena ordinances, codes, and requirements and they failed to discontinue operating in a timely manner;

C.

Evidence that the applicant failed to pay federal, state, or local taxes and/or fees when notified by the appropriate agencies;

D.

As of December 14, 2017, applicant was conducting commercial cannabis activity in the City of Pasadena in violation of local and state law.

E.

No person shall be issued a commercial cannabis permit to operate who enters into an agreement to lease, sublease, or any other agreement regardless if it is verbally or in writing related to any terms of use of the premises from a property owner, commercial broker, or any third party who has violated Section 5.78.100 unless that property is leased at fair market value and such lease, sublease, or agreement does not have any terms or conditions for the commercial cannabis permittee to pay the property owner, commercial broker, or any third party a percentage of cannabis related gross receipts, royalties, or equity, or other unreasonable compensation as determined by the city. In addition, all leases, subleases, or other agreements must be based on a monthly rate.

(Ord. No. 7326, § 1, 6-5-2018)

A commercial cannabis permit is valid for one (1) year from the date of issuance. It may not be transferred, does not run with the land, and is valid only at the original commercial cannabis business site unless a transfer site is approved by the city pursuant to the requirements of the Zoning Code. A commercial cannabis permit may be renewed if the permittee meets the renewal requirements including: (1) pays the renewal fee; (2) has complied with all provisions of this chapter for the past year; and (3) documents and provides any changes that have occurred to the information on the current commercial cannabis permit application.

(Ord. No. 7326, § 1, 6-5-2018)

A.

Commercial cannabis permits may be suspended, revoked or modified for any violation of any state or local law and/or any rule, regulation, and/or standard adopted pursuant to this chapter or in this Code, whether committed by the permittee or any employee or agent of the permittee.

B.

A decision of the city to suspend, revoke or modify a commercial cannabis permit is appealable to a hearing officer and any appeal must be filed with the city manager at least 10 working days prior to the commencement date of the permit revocation or modification. an appeal shall stay all proceedings in furtherance of the appealed action. following appeal, the decision of the hear-ing officer may be appealed to the city council. A decision of the city council shall be the final decision of the city.

C.

Additionally, when there is an imminent threat to public health, safety or welfare, the city manager or his/her designee, may take immediate action to temporarily suspend a commercial cannabis permit issued by the city, pending a hearing before the city manager or his/her designee within ten (10) working days of suspension. The decision of the city manager may be appealed to the city council, whose decision shall be final.

(Ord. No. 7326, § 1, 6-5-2018)

Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend any related local commercial cannabis business permit. If the State of California, or its respective department or division, reinstates or reissues the state license, the commercial cannabis business may seek reinstatement of its commercial cannabis permit. Should the State of California, or any of its departments or divisions, revoke or terminate the state license of a commercial cannabis business, such revocation or termination shall also revoke and terminate any related local commercial cannabis business permit. Furthermore, any owner or operator shall be obligated to inform the city of any suspension, revocation, or termination of a state license.

(Ord. No. 7326, § 1, 6-5-2018)

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

A.

Execute an agreement, in a form approved by the city attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold the City of Pasadena, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, or liabilities which arise out of, or which are in any way related to, the city's issuance of the commercial cannabis 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, or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents.

B.

Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city manager, to provide coverage for the obligations required by this section.

C.

Reimburse the City of Pasadena for all costs and expenses, including, but not limited to, legal fees and costs, which the City of Pasadena may be required to pay as a result of any legal challenge related to the city's action on the applicant's commercial cannabis permit, or related to the city's action on a commercial cannabis activity. The City of Pasadena 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. 7326, § 1, 6-5-2018)

A.

It shall be the duty of every owner and operator of a commercial cannabis business to keep all records as may be necessary to determine the amount of tax due hereunder and shall preserve the same for a period of four years. The tax administrator shall have the right to inspect such records at all reasonable times. The finance director shall determine the mode and method of recordkeeping required to assist the tax collector to perform the duties required of him under this section. At the time of permit renewal, 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 finance director.

B.

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 currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the city manager or his/her designee upon a reasonable request.

C.

All commercial cannabis businesses shall create and maintain an active and functional account within the track and trace system prior to engaging in any commercial cannabis activity. A commercial cannabis business must record all commercial cannabis activity in the track and trace system as required by state law.

(Ord. No. 7326, § 1, 6-5-2018)

A.

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

Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business.

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

Except for live growing plants which are being cultivated at a cultivation site, all cannabis and cannabis products shall be stored in a secured and locked room, safe, display case, or vault. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.

Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. The commercial cannabis business shall be responsible for ensuring that the security surveillance camera's footage is available upon demand by the city. Video recordings shall be maintained for a minimum of ninety (90) days, and shall be made available to the city manager or his/her designee upon request. video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business.

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

Panic buttons shall be installed in all commercial cannabis businesses.

Businesses shall have a professionally installed, maintained, and monitored alarm system.

Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building.

Security personnel shall be on-site 24 hours a day unless alternative security is authorized by the city manager or his/her designee. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager or his/her designee, with such approval not to be unreasonably withheld.

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

B.

Each commercial cannabis business shall identify a designated security representative/liaison to the City of Pasadena, who shall be reasonably available to meet with the city manager or his/her designee at any time regarding any security related measures or and operational issues.

C.

As part of the application and permitting process each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency.

D.

The commercial cannabis business shall cooperate with the city whenever the city manager or his/her designee makes a request, upon reasonable notice to the commercial cannabis business, to inspect or audit the effectiveness of any security plan or of any other requirement of this chapter.

E.

A commercial cannabis business shall notify the city manager or his/her designee within twenty-four (24) hours after discovering any of the following:

Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city manager or his/her designee.

Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business.

The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the commercial cannabis business.

Any other breach of security.

(Ord. No. 7326, § 1, 6-5-2018)

In addition to those operating requirements specifically set forth elsewhere in this chapter or this municipal code, the following operating requirements shall apply to all commercial cannabis businesses operating in the City of Pasadena:

A.

Restriction on Customer Consumption. Cannabis shall not be consumed in any form by any retail customer on the premises of any commercial cannabis businesses.

B.

No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any premises issued a commercial cannabis permit, 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.

C.

Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of- sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the city. The commercial cannabis business shall ensure that such information is compatible with the city's record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the city manager or his/her designee prior to being used by the permittee.

D.

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

E.

Emergency Contact. Each commercial cannabis business shall provide the city manager or his/her designee with the name, telephone number (mobile preferred, if available) of an on-site employee or owner to whom emergency notice can be provided 24 hours per day.

F.

Signage and Notices.

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 Pasadena Municipal Code, including, but not limited to, issuance of a City of Pasadena sign permit.

Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall

advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of-way.

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

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.

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

In accordance with state law and regulations or unless otherwise stipulated in the City of Pasadena regulatory permit, holders of a commercial cannabis permit shall be prohibited from, as an express and ongoing condition of permit issuance and subsequent renewal, advertising any commercial cannabis business located in the City of Pasadena utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising, anywhere in the state. This paragraph is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.

G.

Minors.

Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business unless the person is at least eighteen (18) years of age and has a valid physician's recommendation for medicinal cannabis.

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

The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the commercial cannabis business.

H.

Odor Control. 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 acceptable to the city so that odor generated inside the business that is distinctive to its operation is not detected outside of the business, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following

equipment or any other equipment which the planning and community development director or his/her designee determines is a more effective method or technology:

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

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.

I.

Display of Permit and City Business License. The original copy of the commercial cannabis 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.

J.

Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, or volunteer of the commercial cannabis business must submit fingerprints and other information deemed necessary by the police chief or his/her designee for a background check by the City of Pasadena's Police Department. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which require that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record. No person shall be issued a permit to operate a commercial cannabis business or a related work permit unless they have first cleared the background check, as determined by the police chief or his/her designee, as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City of Pasadena to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis permit is submitted.

K.

Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons on the premises.

(Ord. No. 7326, § 1, 6-5-2018)

A.

No person may operate any commercial cannabis business in the city, without timely paying in full all fees and charges required for the operation of the commercial cannabis business. Fees and charges associated with the operation of a commercial cannabis business shall be established by resolution of the city council which may be amended from time to time.

B.

All commercial cannabis businesses authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each commercial cannabis business shall cooperate with city with respect to any reasonable request to audit the commercial cannabis business' books and records for the purpose of verifying compliance with this section, including, but not limited to, a verification of the amount of taxes required to be paid during any period.

(Ord. No. 7326, § 1, 6-5-2018)

A.

In addition to any regulations adopted by the city council, the city manager or his/her designee is authorized to administratively establish any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis permits, the ongoing operation of commercial cannabis businesses and the city's oversight of the businesses, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

B.

Regulations shall be published on the city's website.

C.

Regulations promulgated by the city manager shall become effective upon the date of publication on the city's website. Commercial cannabis businesses shall be required to comply with all state and local laws and regulations, including, but not limited to, any rules, regulations or standards adopted by the city manager or his/her designee.

(Ord. No. 7326, § 1, 6-5-2018)

A.

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

B.

During the first year of operation pursuant to this chapter, the owner, manager, and community relations representative from each commercial cannabis business holding a permit issued pursuant to this chapter shall attend meetings with the city manager or his/her designee, and other interested parties as deemed appropriate by the city manager or his/her designee, to discuss costs, benefits, and other community issues arising as a result of implementation of this chapter. After the first year of operation, the owner, manager, and community relations representative from each such commercial cannabis business shall meet with the city manager or his/her designee when and as requested by the city manager or his/her designee.

C.

Commercial cannabis businesses to which a permit is issued pursuant to this chapter shall actively participate in a city led public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth use of and addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction.

(Ord. No. 7326, § 1, 6-5-2018)

A.

The city manager, or his/her designee charged with enforcing the provisions of the City of Pasadena Municipal Code, or any provision thereof, may enter the location of a commercial cannabis business at any time during business hours, without notice, and inspect the location of any commercial cannabis business, as well as any recordings and records required to be maintained pursuant to this chapter or under applicable provisions of state law.

B.

It is unlawful for any person having responsibility over the operation of a commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the city to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this chapter or under state or local law. 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 commercial cannabis business under this chapter or under state or local law.

C.

The city manager, or his/her designee charged with enforcing the provisions of this chapter may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of Pasadena shall be logged, recorded, and maintained in accordance with the procedures established by the City of Pasadena City Manager or these regulations.

(Ord. No. 7326, § 1, 6-5-2018)

Each and every violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance.

(Ord. No. 7326, § 1, 6-5-2018)

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 Pasadena. Additionally, as a nuisance per se, any violation of this chapter shall be subject to injunctive relief, any permit issued pursuant to this chapter being deemed null and void, disgorgement and payment to the city for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The City of Pasadena may also pursue any and all remedies and actions available and applicable under state and local laws for any violations commit ted by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity.

(Ord. No. 7326, § 1, 6-5-2018)

Each and every violation of the provisions of this chapter may, in the discretion of the city attorney/city prosecutor and/or the district attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000.00) or imprisonment in the city jail for a period of not more than twelve (12) 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. 7326, § 1, 6-5-2018)

The remedies provided herein are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by law.

(Ord. No. 7326, § 1, 6-5-2018)

Except as may be provided otherwise in this chapter, any law or regulation adopted by the state governing the cultivation, production, distribution, or sale of cannabis for medicinal or adult-use shall also apply to cannabis businesses in the city. If there is a conflict between state law and this chapter, state law shall be applied. A conviction for noncompliance with any applicable state law or regulation shall be grounds for revocation or suspension of any license or permit issued under this

chapter. No commercial cannabis business shall continue operations in violation of any state law or regulation applicable within the city after the effective date of the state law or regulation. If the state prohibits businesses from engaging in commercial cannabis activity, or if a court of last resort with competent jurisdiction determines that the federal government's prohibition on commercial cannabis activity supersedes state law, any commercial cannabis permit issued pursuant to this chapter shall be deemed to be immediately revoked by operation of law.

(Ord. No. 7326, § 1, 6-5-2018)

If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, that invalidity shall not affect any other provision or application of this chapter that can be given effect without the invalid provision or application; and to this end, the provisions or applications of this chapter are severable.

(Ord. No. 7326, § 1, 6-5-2018)