Article VII — CANNABIS DISPENSARIES

SECTION:

15-85: Definitions

15-86: Cannabis Dispensaries Permitted Uses And Zoning

15-87: Cannabis Dispensaries Requirements And Restrictions

15-88: Regulatory Permit Required

15-89: Employee Permit Required

15-90: Application Fees

15-91: Investigation

15-92: Term Of Permits And Renewals

15-93: Grounds For Denial Of Regulatory Permit

15-94: Grounds For Denial Of Employee Permit

15-95: Notice Of Decision And Final Action

15-96: Suspension And Revocation Of Regulatory Permit Or Employee Permit

15-97: Effect Of Denial Or Revocation

15-98: Abandonment

15-99: Other Licenses, Permits, Taxes Or Charges

15-100: Violation Deemed Misdemeanor And Other Remedies

15-101: Actions To Collect

15-102: Severability

15-103: Remedies Cumulative

15-104: Amendment Or Repeal

15-105: Penalties

15-85: DEFINITIONS:

The following definitions are applicable to the terms when used in chapter 15, 18, or 21 of this Code, concerning regulations pertaining to cannabis uses, activities and operations.

APPLICANT: Means a person who is required to file an application for a permit under this article.

BUSINESS OWNER: Means the owner(s) of the cannabis business. For publicly traded companies, owner means the chief executive officer or any person or entity with an aggregate ownership interest of five percent (5%) or more. For all other businesses, other than publicly traded companies, an owner is an individual that has an aggregate ownership of interest other than a lien or encumbrance, of twenty percent (20%) or more in the commercial cannabis business.

CANNABIS: Means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or hereafter be discovered or developed that has psychoactive or medicinal properties; 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 purposes of this Code, "cannabis" does not mean "industrial hemp" as defined by section 11018.5 of the Health and Safety Code.

CANNABIS ACCESSORIES: Means any equipment, products, or materials of any kind which is intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. "Cannabis accessories" also has the same meaning as in section 11018.2 of the Health and Safety Code.

CANNABIS BUSINESS OR CANNABIS INDUSTRY: Means any business activity in the City relating to cannabis, including but not limited to cultivation (including nurseries), transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, delivery and sales (wholesale and/or retail sales) of cannabis or cannabis products, whether or not carried on for gain or profit. A cannabis business does not include any business whose only relationship to cannabis or cannabis products is the production or sale of cannabis accessories.

CANNABIS DISPENSARY OR DISPENSARY: Means a facility where cannabis or cannabis products, are offered, either individually or in combination, for retail sale, including an establishment that engages in delivery of cannabis or cannabis products as part of a retail sale. In addition, and without limiting the foregoing, "dispensary" includes "dispensary" as defined in California Business and Professions Code division 10 and any successor statute(s), as may be adopted or amended from time to time. For the purposes of obtaining a City permit and operating within the City, "cannabis dispensary" or "dispensary" is limited to storefront cannabis retailers.

CANNABIS PRODUCT: Means any product containing cannabis, including, but not limited to, flowers, buds, oils, tinctures, concentrates, extractions, edibles and those products described in section 11018.1 of the Health and Safety Code.

CITY: Means the City of Porterville, either the entity or its territorial limits, as the context requires.

CITY COUNCIL OR COUNCIL: Means the City Council of the City of Porterville.

COLLECTOR: Means the City's Financial Director or his or her designee.

COMMERCIAL CANNABIS BUSINESS, COMMERCIAL CANNABIS ACTIVITY, OR CANNABIS BUSINESS OR CANNABIS OPERATION: Means any commercial marijuana activity allowed under State law and the implementing regulations, as State law and the implementing regulations may be amended from time to time, and all uses permitted under any subsequently enacted State law pertaining to the same or similar uses for recreational cannabis, including the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis product for medical, non- medical, or any other purpose and includes the activities of any business licensed by the State or other government entity under division 10 of the California Business and Professions Code, or any provision of State law regulating the licensing of cannabis businesses. It also includes cannabis dispensaries, cooperatives or collectives.

COMMERCIAL CANNABIS REGULATORY PERMIT OR REGULATORY PERMIT: Means the permit required under this article to have a cannabis business.

CONCENTRATED CANNABIS: 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.

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 and controlled by the retailer, or independently licensed under this article that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of marijuana or marijuana products.

DELIVERY EMPLOYEE: Means an individual employed by a licensed dispensary who delivers cannabis goods from the licensed dispensary premises to a physical address.

DEVELOPMENT AGREEMENT: Means an agreement entered into between the City and the business owner and any other responsible parties as required by the City, in accordance with chapter 21, series 600, article 609 of this Code.

DISTRIBUTION: Means the procurement, sale, and transport of cannabis or cannabis products between licensees.

DISTRIBUTOR: Means a person engaged in procuring cannabis from a cultivator, and/or procuring cannabis products from a manufacturer, for sale to a licensed commercial cannabis business. In addition, and without limiting the foregoing, "distributor" includes "distributor" as defined in California Business and Professions Code division 10 and any successor statute, as may be adopted or amended from time to time.

EMPLOYEE: Means each and every person engaged in the operation or conduct of any cannabis business, whether as owner,

member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such cannabis business for a wage, salary, commission, barter or any other form of compensation.

GROSS RECEIPTS: Means the amount a cannabis operation received from all sources during its accounting period, without subtracting any costs or expenses.

MAUCRSA: Means the Medicinal and Adult-Use Cannabis Regulation and Safety Act as codified in division 10 of the California Business and Professions Code, as the same may be amended from time to time.

MANUFACTURE: Means to compound, blend, extract, infuse or otherwise make or prepare a cannabis product.

MEDICAL CANNABIS DISPENSARY: Means a storefront cannabis dispensary with a valid M-type 10 retailer license in accordance with MAUCRSA.

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

PREMISES: Means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee.

PROCESSING: Means any method used to prepare cannabis or its byproducts for personal use or commercial retail and/or wholesale, including but not limited to: drying, cleaning, curing, packaging, and extraction of active ingredients to create cannabis related products and concentrates.

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

STATE: Means the State of California.

STATE LAW: Means all regulations and laws pertaining to cannabis business in the State of California.

STATE LICENSE: Means a State license issued pursuant to California Business and Professions Code section 26000, et seq., or other applicable State law.

TRANSPORT OR TRANSPORTATION: Means the transfer of cannabis or cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized pursuant to this article. (Ord. 1853, 5-7-2019)

15-86: CANNABIS DISPENSARIES PERMITTED USES AND ZONING:

Business owners meeting the requirements of this article shall be allowed to conduct storefront cannabis dispensary operations in the zone districts and locations as specified in chapter 21 of this Code, upon obtaining a regulatory permit from the City, obtaining a business license from the City, obtaining the applicable license from the State of California, and entering a Development Agreement with the City as specified further in this article. Non-storefront cannabis retailers are not permitted within the City. (Ord. 1853, 5-7-2019)

15-87: CANNABIS DISPENSARIES REQUIREMENTS AND RESTRICTIONS:

A. Maximum Number of Permits. The number of regulatory permits for dispensaries is limited to no more than two permits plus an additional permit per every 25,000 residents. Said permits may be issued for medical (Type M) or adult use (Type A) businesses as allowed by the State. However, the City Council may, but is not required to, reserve one of the allowed permits for exclusively a medical cannabis dispensary. No applications for regulatory permits shall be accepted or considered for approval by the City until authorized by the City Council, and shall only be accepted under the terms and conditions specifically established by the City Council.

B. Regulatory Permit/Fees.

1. Regulatory Permit. No person or entity shall operate a Cannabis Dispensary within the City of Porterville without first obtaining a

Cannabis Regulatory Permit from the City. The Regulatory Permit shall be site specific and shall specifically identify the commercial cannabis activity that will be allowed at that site. No commercial cannabis activity will be allowed unless specifically identified in the Regulatory Permit.

2. Request for Proposals Processes. The City may conduct initial request for proposals processes for regulatory permit applications

(commercial or medical), once it determines when dispensary regulatory permits shall become available, and thereafter as such permits become available. Nothing in this Chapter or Code shall be construed to create an obligation for the City to conduct a request for proposals process for, or to create an obligation to grant a permit to, any cannabis dispensary. The City Council may authorize the initiation of the Request for Proposals Process at any time for any one or more of the available permits, up to the maximum number permitted by this Article.

3. Medical Cannabis Dispensaries.

a. If, after one full year from the City’s first issuance of a Request for Proposals solely for a Medical Cannabis Dispensary, no

responses are received within the prescribed time period for such responses, the City Council may opt to allow the permit reserved for a medical dispensary to be utilized for an adult-use dispensary, as otherwise permitted by this Chapter.

b. Any Medical Cannabis Dispensary established pursuant to this Chapter must be in operation for a full year before it will be

eligible to apply for any transition to an adult-use dispensary (Type A), and any medical cannabis dispensary applying for a transition shall be subject to all the requirements of this Chapter, including applying for a new regulatory permit and entering into a new development agreement.

4. Permit Availability at the Discretion of the City Council. The City shall maintain complete discretion over whether any permit

approvals are made, how many permit approvals are made, when permits shall be issued, where the uses may be located (subject to Chapter 21), the terms and conditions under which any or all of the permits are issued, and the manner of permit approvals.

5. Fees. All related fees and charges associated with conducting a request for proposals process, regulatory fee application process, and the granting, administering, and enforcing of the regulatory permits, and any other City costs related to the operations of a dispensary shall be established by Resolution(s) of the City Council, which may be amended from time to time.

C. Development Agreement. No approval required by this Article shall be given for any permit for a dispensary unless the City Council prior to or concurrently with approves a Development Agreement, setting forth the terms and conditions under which the commercial cannabis activity will operate in addition to the requirements of this Article, all other local ordinances and regulations, state law and such other terms and conditions that will protect and promote the public health, safety and welfare. No use or operation under any permit for a dispensary shall be allowed to begin until the development agreement is effective.

D. State Law and Other State Laws. The cannabis dispensary shall at all times be in compliance with State Law and the implementing regulations, as they may be amended from time to time, as well as all required State license(s) under State Law, and any other applicable State law. The Operator shall obtain required licenses under State Law prior to opening for business, or if the State is not ready to issue licenses under State Law prior to the time of opening, within twelve (12) months of the State being ready to issue the required license(s). Provided, however, that the Operator shall at all times be in compliance with all other requirements of State Law and implementing regulations, and any other applicable State law, regardless of the timing of the issuance of a license under State Law. The Operator shall meet or exceed the health and safety requirements of State Law in any operations relating to recreational cannabis.

E. Register of Employees. The Operator shall maintain a current register of the names of persons required to have Employee Permits. The register shall be available to the Police Chief at all times immediately upon request. All agents, officers, or other persons acting for or employed by a licensee shall display a laminated identification badge issued by the licensee. The identification badge shall, at a minimum, include the licensee’s “doing business as” name and license number, the employee’s first and last name, and a color photograph of the employee that shows the full front of the employee’s face and that is at least 2 inches by 2 inches in size.

F. Labeling. All cannabis products offered to customers at a retail location must provide testing and labeling at a minimum as required by State law and in compliance with any additional City regulations and as they may be amended.

G. Signage. All signage shall be subject to approval by the City of Porterville and consistent with the City’s Signage Ordinances, and any other policies or guidelines adopted by the City.

H. Alcoholic Beverages. Alcohol for personal consumption shall not be provided, stored, kept, located, sold, dispensed, or used on the Premises.

I. Transportation. Transportation shall only be conducted according to activity permitted by State law.

J. Distribution. There shall be no distributions to the Premises of cannabis or cannabis containing products except from properly licensed and permitted cannabis businesses. City-licensed and permitted cannabis retailers shall not distribute cannabis as a licensed distributor within the City.

K. Minors. It shall be unlawful for any Operator to employ any person who is not at least twenty-one (21) years of age, or any older age if set by the State.

L. Hours of Operation. Cannabis Dispensaries shall be allowed to operate per the requirements of the underlying zone district and subject to the City’s noise and nuisance ordinances but in no case shall exceed the minimum State standards.

Additionally, the City Council may set allowed hours of operation by Resolution that are more restrictive, if it finds that the limitations

are appropriate to protect the public health, safety, peace or welfare.

M. Compliance with Building and Related Codes. The Premises in which the Cannabis Dispensary operations occur shall comply with all applicable local, State and federal laws, rules, and regulations including, but not limited to, building codes and the Americans with Disabilities Act, as certified by the Building Official of the City. The Operator shall obtain all required building permits and comply with all applicable City standards.

N. Secure Building. All Cannabis Dispensary operations shall occur entirely inside of a building (excluding any expressly authorized drive-through facility) that shall be secure, locked, and fully enclosed, with a ceiling, roof or top. The building shall include a burglar alarm monitored by an alarm company or private security company. The building, including all walls, doors, and the roof, shall be of solid construction meeting the minimum building code requirements for commercial structures and include material strong enough to prevent entry except through an open door. Any authorized drive- through facilities shall be designed and operated with appropriate security features and measures as approved by the City.

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

1. Alarm System (both perimeter, fire and panic). A licensee shall maintain an alarm system as defined in Business and Professions

Code section 7590.1(n). A licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system.

2. Remote monitoring of alarm systems.

3. Exterior lighting systems for after-hours security.

4. Exterior and interior camera systems approved by the Police Chief. The camera systems shall meet the minimum requirements of

State Law, include interior monitoring of all access points of the site from the interior, and be of a minimum 5 mega pixels in resolution. Cameras shall record continuously 24 hours per day and at a minimum of 20 frames per second. Areas monitored are defined by State law.

5. All security systems at the site are attached to an uninterruptable power supply that provide continuous power.

6. The Porterville Police Department or Department designee shall have access to all security systems.

7. Subject to the provisions below regarding the use and handling of Confidential Information, IP access for remote monitoring of

security cameras by the Porterville Police Department or Department designee.

8. Subject to the provisions below regarding the use and handling of Confidential Information, any and all video or audio tape

recordings made for security or other purposes shall be marked with the date and time made and shall be kept, in an unaltered state, for a period of thirty (30) days and must be made available to the Porterville Police Department or Department designee for duplication upon demand. In addition, upon request by the Porterville Police Department the Responsible Party shall duplicate the records for the Porterville Police Department or Department designee.

9. [Reserved].

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

11. Electronic track and trace systems for cannabis products shall be utilized as approved by the City and as required by State law.

12. Premises may be inspected and records of the Business Owner audited by the City for compliance on a quarterly basis or at

any reasonable time at the City’s discretion.

13. State of the art network security protocols and equipment need to be in place to protect computer information.

14. The foregoing requirements shall be approved by the Police Chief prior to commencing operations. The Police Chief may

supplement these security requirements once operations begin, subject to review by the City Council if requested by the Business Owner.

15. The City, Police Chief, Police Department employees, and any other law enforcement official acting under the direction of the Police Chief who access the Premises and video and/or audio feeds or recordings of the Premises (“Recipients”) may receive or be provided with confidential information relating to the Cannabis dispensary, which may include the following: data, records, plans, and matters relating to customers, vendors, tenants, agreements, and business records (collectively “Confidential Information”).To the extent Confidential Information is acquired without a warrant for access to the Premises and video and/or audio feeds or recordings as authorized under this section, the Recipients shall, to the maximum extent possible, keep such Confidential Information confidential and not disclose the Confidential Information to any third parties. Provided, however, that the Recipients may disclose Confidential Information to the State or Federal courts in California in connection with any criminal law enforcement action against the Business Owner or Operator, (including its employees, contractors and agents conducting business within the Premises) arising from or related to the Cannabis dispensary, but only to the extent it is necessary and relevant to such criminal prosecution, and the Recipients shall file any such documents under seal to the extent they contain any Confidential Information. Notwithstanding the foregoing, the City may disclose Confidential Information:

    a. As may be required by the California Public Records Act or pursuant to a civil subpoena, provided however, the City shall notify the Operator and provide the Operator with a reasonable opportunity to obtain a protective order before disclosing the Confidential Information.

    b. In connection with any City enforcement proceeding relating to compliance with City’s Municipal Code and this section, but only to the extent the Confidential Information is relevant to the proceeding.

P. Delivery.

1. Unless otherwise (and only to the extent) required to be permitted by State law, deliveries to customers from dispensaries located

outside the City are prohibited.

2. All deliveries of cannabis goods must be performed by a delivery employee of a licensed dispensary. Each delivery employee of a

licensed dispensary shall be at least 21 years of age.

3. A licensed dispensary shall not use the services of an independent contractor or courier service to deliver cannabis goods.

4. All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall not be made through the use of an

unmanned vehicle.

5. A delivery employee begins the process of delivering when the delivery employee leaves the dispensary premises with the

cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the licensed dispensary premises after delivering the cannabis goods to the cannabis patients or primary caregivers.

6. A delivery employee of a licensed dispensary shall, during deliveries, carry a copy of the dispensary’s current license, the employee’s government-issued identification, and an employer provided badge containing a picture and the name of the delivery employee.

   7. A licensed dispensary shall maintain an accurate list of the dispensary’s delivery employees.

Q. Deliveries of Supplies and Transportation of Product. The following rules apply to the deliveries and transportation:

1. Deliveries to the Premises of supplies shall only occur as provided for in the diagram and floor plan on file with the City as part of

the application process. Delivery vehicles shall not have any markings indicating that deliveries are being made to a Cannabis Dispensary.

2. The transportation of cannabis samples and product to and from the Premises shall be in unmarked vehicles with no indication

that the vehicles are transporting cannabis samples and products. The Responsible Party shall stagger transportation times, vary routes from the facility, and take other security measures as requested by the Police Chief.

R. Premises Maintenance. The Business Owner, Operator, and all Responsible Parties shall continually maintain the Premises and its infrastructure so that it is visually attractive and not dangerous to the health, safety and general welfare of employees, patrons, surrounding properties, and the general public, and in accordance with the conditions and site plan approved with the Development Agreement. The Premises of the Cannabis Dispensary shall not be maintained in a manner that causes a public or private nuisance.

S. In addition to any regulations, policies, or procedures authorized to be adopted by the City in accordance with this Article or this Code, the City Manager, or his or her designee, is authorized to establish any addition rules, regulations, policies and standards governing the application review and approval process, the issuance, denial or renewal of cannabis dispensary regulatory permits, the ongoing operation of commercial cannabis dispensary businesses and the City’s oversight of same; and/or concerning any other subject determined to be necessary to carry out the intent and purposes of this Article. Additional rules, regulations, policies and standards shall

be published to the City’s website and maintained and available to the public if the Office of the City Clerk.

T. Indemnification and Limitations on City’s Liability.

1. To the fullest extent permitted by local, state, and/or federal law, the City shall not assume any liability whatsoever with respect to

having issued a regulatory permit or executed a development agreement pursuant to this Article, or otherwise approving the operation of any commercial cannabis business.

2. As a condition to the approval of any regulatory permit and approval of a development agreement, the applicant shall be required to execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend at the applicant’s sole cost and expense, and hold harmless the City, and its officers, officials, employees, representatives, and agents from any against all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to the City’s drafting, adoption and passage of regulations, related resolutions, policies, rules and guidelines, allowing cannabis dispensaries or in the future making any regulatory amendments; the City’s issuance of the regulatory permit; the City’s approval and execution of a development agreement; the City’s decision to approve the operation of the dispensary; the process used by the City in making the decision to issue, approve or deny a permit or a development agreement; and/or the alleged violation of any federal, state or local laws by the dispensary or any of its officers, employees or agents.

   3. The dispensary shall maintain insurance at coverage limits and with conditions thereon determined necessary and appropriate from time to time by the City.

   4. The dispensary shall reimburse the City for all costs and expenses, including but not limited to attorney fees and court costs, which the City may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s regulatory permit, or related to the City’s approval of the applicant’s commercial cannabis activity, or the City’s approval of a development agreement. The City may, at its sole discretion, participate at its own expense in the defense of such action, but such participation shall not relieve any of the obligations imposed hereunder.

   5. The terms and provisions as enumerated in this section related to indemnification and limitation on the City’s liability shall be an explicit term of a regulatory permit and a development agreement that an applicant and permittee shall agree to in order for same to be valid. (Ord. 1853, 5-7-2019; amd. Ord. 1879, 2-16-2021; Ord. 1910, 6-3-2025)

15-88: REGULATORY PERMIT REQUIRED:

A. Application For Permit: At the time authorized by the City, applications for regulatory permits shall be filed by the proposed business owner(s) with the City and include the information set forth herein. The City may request such additional information as they deem necessary to determine who the applicant is, and may adopt additional requirements as authorized in subsection 15-87B of this article.

The applicant shall certify under penalty of perjury that all the information contained in the application is true and correct. The application shall contain the following items for the business owner, operator and all responsible parties known at the time (if different than the business owner), and any other party designated below, to the extent the same shall apply:

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

2. Date of birth.

3. Tax identification number.

   4. The address to which notices relating to the application are to be mailed.

   5. Previous addresses for the five (5) years immediately preceding the present.

   6. The height, weight, color of eyes and hair.

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

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

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

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

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

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

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

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

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

operational requirements.

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

B. Other Permits Or Licenses: The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement of obtaining a regulatory permit. (Ord. 1853, 5-7-2019)

15-89: EMPLOYEE PERMIT REQUIRED:

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

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

1. Name, current resident address, and telephone number.

2. Date of birth.

3. Tax identification number.

4. Height, weight, color of eyes, and hair.

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

6. Be fingerprinted by the Police Department.

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

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

9. The name of the business owner holding the regulatory permit and the operator for which such person is proposed to work. (Ord.

1853, 5-7-2019; Ord. 1910, 6-3-2025)

15-90: APPLICATION FEES:

Every new application for a regulatory permit, employee permit, or renewal shall be accompanied by a nonrefundable fee, as established by resolution of City Council. This fee shall be in addition to any other business license, tax, or permit fee imposed by this Code or other governmental agencies. The fee shall include an amount to cover the costs of fingerprinting, photographing, background checks as well as general ongoing monitoring for compliance and processing of the application. (Ord. 1853, 5-7-2019)

15-91: INVESTIGATION:

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

B. For employee permits, after the background checks and investigation are complete, and in no case later than thirty (30) days after receipt of a properly completed application, the Police Chief shall either approve or deny an employee permit. At the discretion of the Police Chief, employee permits may be conditionally approved pending the background investigation. (Ord. 1853, 5-7-2019)

15-92: TERM OF PERMITS AND RENEWALS:

Regulatory permits issued under this chapter shall expire on December 31st each year. Applications for renewal shall be made at least forty five (45) days prior to the expiration date of the permit and shall be accompanied by the nonrefundable fee referenced in this article. When made less than forty five (45) days before the expiration date, the expiration of the permit will not be stayed. Applications for renewal shall be acted on similar to applications for permits except that the Police Chief shall renew annual permits for additional one year periods if the circumstances and information provided with the initial application have not materially changed. Regulatory fees may be pro-rated based on the term of the regulatory permit. (Ord. 1853, 5-7-2019)

15-93: GROUNDS FOR DENIAL OF REGULATORY PERMIT:

Nothing in this article shall be construed to require the City to grant a regulatory permit. Notwithstanding this, applications for a regulatory permit are required to be denied for one or more of the following:

A. The business or conduct of the business at a particular location is prohibited by any local or State law, statute, rule or regulation.

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

C. The business owner or operator has knowingly made a false statement of material fact or has knowingly omitted to state a material fact in the application.

D. Consistent with State law or other applicable State law, the business owner or operator, or any responsible person, has been:

1. Convicted of a serious or violent offense as listed under California Penal Code sections 667.5 and 1192.7(c); or

   2. Convicted of any of the offenses listed in Business and Professions Code section 19323; or

   3. Convicted of a misdemeanor involving moral turpitude as defined under State law (generally crimes relating to theft and dishonesty) within the five (5) years preceding the date of the application; or

   4. Convicted of a felony involving the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, unless the individual has received a Certificate of Rehabilitation as defined in the Act; or

   5. Has engaged in misconduct related to the qualifications, functions or duties of a permittee, such as lying on an application, falsifying legal documents, or anything that would otherwise ban the permittee from obtaining a State license under State law; or

   6. Consistent with State law or other applicable State law, the business owner or operator has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices; or

   7. The business owner or operator is under twenty one (21) years of age, or any older other age set by the State; or

2. The cannabis operation does not comply with the Zoning Ordinance standards of the City, the development standards set forth in this Code, or the terms of the Development Agreement; or

   9. The required annual business license fee, annual regulatory fee or fees specified in this Code or the Development Agreement have not been paid. (Ord. 1853, 5-7-2019)

15-94: GROUNDS FOR DENIAL OF EMPLOYEE PERMIT:

The grounds for denial of an employee permit shall be one or more of the following:

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

B. Consistent with State law or other applicable State law, the applicant has been:

1. Convicted of a serious or violent offense as listed under California Penal Code sections 667.5 and 1192.7(c); or

2. Convicted of any of the offenses listed in Business and Professions Code section 19323; or

3. Convicted of a misdemeanor involving moral turpitude as defined under State law (generally crimes relating to theft and

dishonesty) within the five (5) years preceding the date of the application; or

4. Convicted of a felony involving the illegal use, possession, transportation, distribution or similar activities related to controlled

substances, as defined in the Federal Controlled Substances Act, unless the individual has received a Certificate of Rehabilitation as defined in State law; or has engaged in misconduct related to the qualifications, functions or duties of a permittee; or

5. Consistent with State law or other applicable State law, the applicant has engaged in unlawful, fraudulent, unfair, or deceptive

business acts or practices; or

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

7. An applicant is under twenty one (21) years of age, or any older age set by the State. (Ord. 1853, 5-7-2019)

15-95: NOTICE OF DECISION AND FINAL ACTION:

A. Regulatory Permit: Action on a properly authorized and submitted application for a regulatory permit shall be as follows:

1. The Police Chief shall cause a written notice of his or her recommendation on the issuance or denial of a regulatory permit, and

the date and time when the City Council will consider action on the regulatory permit, to be personally delivered or mailed to the applicant by certified U.S. mail, postage prepaid.

2. Following a public hearing before the City Council, the Council may grant the regulatory permit subject to the other requirements

of this article and subject to such conditions as it deems reasonable under the circumstances to protect the public health, safety, and welfare of the community, or it may deny the issuance of the regulatory permit for any of the grounds specified in this section. The decision of the Council shall be final, subject to judicial review below.

B. Employee Permit: Action on the employee permit shall be as follows: The Police Chief shall cause a written notice of his or her determination on the issuance or denial of an employee permit to be personally delivered or mailed to the applicant by certified U.S. mail, postage prepaid. The Police Chief's decision on an employee permit shall be final, subject to judicial review. (Ord. 1853, 5-7-2019)

15-96: SUSPENSION AND REVOCATION OF REGULATORY PERMIT OR EMPLOYEE PERMIT:

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

1. The cannabis operation is conducted in violation of any provision of this article, the terms of the Development Agreement, State

law, or any other applicable State law.

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

3. A failure to pay the regulatory fee required by this article or other required fees pursuant to this Code or the Development

Agreement.

4. A failure to take reasonable measures to control patron conduct, where applicable, resulting in disturbances, vandalism, or crowd

control problems occurring inside of or outside the premises, traffic control problems, or obstruction of the operation of another business.

5. A failure to comply with the terms and conditions of the regulatory permit issued in connection therewith or the terms of the Development Agreement.

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

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

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

2. Violates any provision of this article, State law, or any other applicable law relating to the cannabis operation.

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

C. Procedures For Revoking Regulatory Permits: For regulatory permits, the procedures for revoking conditional use permits shall be utilized except that the matter shall be heard by the City Council in the first instance, and shall be subject to the same judicial process as applied to a conditional use permit.

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

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

1. The business owner or operator is convicted of a public offense in any court for the violation of any law which relates to the

cannabis operation, or in the case of an employee permit, the employee is convicted of a public offense in any court for the violation of any law which relates to the permit.

2. The Police Chief determines that immediate suspension is necessary to protect the public health, safety, and welfare of the

community. The Police Chief shall articulate the grounds for the immediate suspension in writing and the suspension shall only be for as long as necessary to address the circumstances which led to the immediate suspension. (Ord. 1853, 5-7-2019)

15-97: EFFECT OF DENIAL OR REVOCATION:

When the City Council shall have denied a regulatory permit or revoked a regulatory permit, or the Police Chief shall have denied or revoked an employee permit, no new application for a regulatory permit and no new application for an employee permit shall be accepted and no regulatory permit or employee permit shall be issued to such person or to any corporation in which he or she shall have any beneficial interest for a period of one year after denying or revoking the regulatory permit or employee permit. (Ord. 1853, 5-7-2019)

15-98: ABANDONMENT:

In addition to the suspension or revocation of a regulatory permit, a regulatory permit shall be deemed abandoned if the cannabis operation ceases for a period of more than ninety (90) consecutive days. Before restarting operations, a new regulatory permit shall be secured. The ninety (90) day period shall be tolled during periods of force majeure, which shall be defined as follows: war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; casualties; supernatural causes; acts of the "public enemy"; epidemics; quarantine restrictions; freight embargoes; lack of transportation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; or any other causes beyond the reasonable control of the permittee. (Ord. 1853, 5-7- 2019)

15-99: OTHER LICENSES, PERMITS, TAXES OR CHARGES:

Except as expressly provided in this article, nothing contained in this article shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any provision of any other title or chapter of this Code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other title or chapter of this Code or any other ordinance or resolution of the City. Any references made or contained in any other title or chapter of this Code to any permits, licenses, taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the permits, licenses, taxes, fees or charges, or schedule of license fees, provided for in other titles or chapters of this Code unless otherwise expressly provided. (Ord. 1853, 5-7-2019)

15-100: VIOLATION DEEMED MISDEMEANOR AND OTHER REMEDIES:

Any person who violates any provision of this article or who other than by a sworn statement, knowingly or intentionally misrepresents to any officer or employee of the City any material fact herein required to be provided is guilty of a misdemeanor punishable as provided in section 1-9 of this Code. A person who on a sworn statement states as true a material fact that he or she knows to be false is guilty of perjury. Additionally, the City may avail itself of any remedies or enforcement provisions provided for in this Code. (Ord. 1853, 5-7-2019)

15-101: ACTIONS TO COLLECT:

The amount of any tax, fee, penalty and/or interest imposed pursuant to this chapter shall be deemed a debt owed to the City. An action may be commenced in the name of the City in any court of competent jurisdiction, for the amount of any delinquent tax, fees, penalties and interest thereon. (Ord. 1853, 5-7-2019)

15-102: SEVERABILITY:

If any provision of this chapter, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable. (Ord. 1853, 5-7-2019)

15-103: REMEDIES CUMULATIVE:

All remedies prescribed under this chapter shall be cumulative and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions hereof. (Ord. 1853, 5-7-2019)

15-104: AMENDMENT OR REPEAL:

This article may be repealed or amended by ordinance of the Porterville City Council. (Ord. 1853, 5-7-2019)

15-105: PENALTIES:

Any entity that fails to pay the taxes and/or fees required by this Code or the Development Agreement within fifteen (15) days after the due date shall pay in addition to those taxes and/or fees a penalty for nonpayment in the sum equal to twenty five percent (25%) of the total amount due. Additional penalties will be assessed in the following manner: ten percent (10%) shall be added on the first day of each calendar month following the month of the imposition of the twenty five percent (25%) penalty if the fee remains unpaid - up to a maximum of one hundred percent (100%) of the fee payable on the due date. Receipt of the fee payment by the City shall govern the determination of whether the fee is delinquent. Postmarks will not be accepted as adequate proof of a timely payment. (Ord. 1853, 5-7- 2019)