Redding Municipal Code Ch. 6.12 Cannabis

Footnotes:

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Editor's note— Ord. No. 2584, §§ 3 and 4, adopted March 20, 2018, repealed Ch. 6.12, §§ 6.12.010—6.12.040, and enanacted a new Ch. 6.12 as set out herein. Former Ch. 6.12 pertained to Medical Marijuana Cooperatives and Collectives, and derived from Ord. No. 2481, §§ 2 and 3, adopted November 15, 2011.

"Cannabis" has the same meaning as defined in Business and Professions Code section 26001.

"Cannabis business" means any enterprise engaged in the cultivation, manufacture, processing, laboratory testing, storage, delivery, distribution, or retail sale of recreational or medical cannabis.

"Cannabis goods" means cannabis, including dried flower, and cannabis products, as defined herein.

"Cannabis products" shall have the meaning set forth in Health and Safety Code section 11018.1.

"Cannabis retailer - delivery only" means a retailer selling cannabis (whether medical or adult-use) or cannabis products only by delivery and not by completing the transfer in a building or structure that is open to customers or elsewhere on the retail site.

"Cannabis retailer" or "retailer" means a business selling cannabis or cannabis products to the end user or customer. A cannabis business retailer does not include the following uses: (1) a clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code; (2) a residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code; and (3) a residential hospice or a home health agency licensed pursuant to Chapter 8 of Division 2 of the Health and Safety Code.

"Charged" within the meaning of this chapter means (1) an indictment was issued by a grand jury, or an information, complaint, or similar pleading was issued by the United States Attorney, district attorney, city attorney, or other governmental official or agency authorized to prosecute crimes, and (2) the criminal proceedings are currently pending.

"City manager" shall mean the city manager of the City of Redding or his/her designee.

"Commercial sale" means the offer, sale or exchange for value of cannabis for recreational and/or medical use.

"Convicted" or "conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted.

"Cultivation" or "cultivate" means any activity involving the planting, growing, harvesting, drying, curing, grading, trimming or processing of cannabis plants or any part thereof.

"Delivery" means to transport any item from a cannabis business to a person other than a cannabis business.

"Detached, fully-enclosed and secure structure" means a structure completely detached from a residence that complies with all state and municipal laws and regulations and has a complete roof enclosure supported by connecting walls extending from the ground to the roof, a foundation, slab or equivalent base to which the floor is secured by bolts or similar attachments, is secure against unauthorized entry, is accessible only through one or more lockable doors and has walls sufficient to obscure view so the contents therein cannot be recognized from the outside.

"Director" means the director of development services for the City of Redding. Whenever reference is made to the director, such reference shall be interpreted to include a designee of the director.

"Distributor" means a person or entity engaged in distribution, as defined by Business and Professions Code section 26001(r), of cannabis or cannabis products.

"Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations.

"Indoors" means within a fully enclosed and secure structure.

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

"Manufacturer" means a business producing, preparing, propagating, manufacturing or compounding cannabis and cannabis products. "Cannabis manufacturing business" includes businesses involving the extraction of a substance from a cannabis plant, the infusion or mixture of cannabis into another substance, the preparation of an edible item that contains cannabis, and the packaging and labeling of cannabis or cannabis products. "Cannabis manufacturing business" does not include a cannabis cultivation business.

"Objectionable conditions that constitute a nuisance" means disturbance of the peace, public intoxication, drinking alcoholic beverages in public, smoking or ingesting cannabis or cannabis products in public, harassment of passersby, gambling, prostitution, loitering, public urination, lewd conduct, drug trafficking, or excessive loud noise.

"Outdoor" means any area or location not specifically meeting the definition of indoors.

"Owner" shall have the meaning provided in Section 5003(b) of Title 16 of the California Code of Regulations.

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

"Residential structure" or "residence" or "private residence" means any building, or portion thereof, legally existing which contains living facilities, including provisions for sleeping, eating, cooking and sanitation and includes a house, an apartment unit, a mobile home, or similar dwelling.

"Significant discrepancy in inventory" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a licensee's inventory.

"Transport" means to physically move items between cannabis businesses. "Transport" does not include delivery.

"Volatile solvent" means a solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. "Volatile solvent" does not include carbon dioxide used for extraction or ethanol used for extraction and post-extraction processing.

"Youth-oriented facility" shall have the same meaning as set forth for "youth center" in Business and Professions Code section 26001.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 1, 3-19-2019)

A. It is unlawful and a public nuisance for any person to cause or allow any property within the jurisdictional limits of the City of Redding to be used for the outdoor cultivation or outdoor storage of cannabis.

B. Every cannabis plant cultivated in violation of this section shall constitute a separate violation.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 2, 3-19-2019)

A. It is hereby declared to be unlawful and a public nuisance for any person, legal entity or association of individuals to cultivate cannabis indoors at a private residence, except as provided in this section.

B. It is unlawful and a public nuisance for any person to cultivate cannabis inside any residential structure or building without first having been issued a license for such cultivation by the director as provided herein. No license shall be issued or be renewed for a period longer than one year. Every cannabis plant cultivated in violation of this section shall constitute a separate violation.

C. The indoor cultivation of cannabis at a private residence shall only be conducted within a detached, fully-enclosed and secure structure or within a residential structure. Cultivation shall conform to the following minimum standards:

1. No more than six cannabis plants, whether mature or not, may be cultivated indoors at any private residence.

2. Indoor grow lights shall not exceed one thousand two hundred watts and shall be installed, maintained and operated in compliance with the Redding Municipal Code. Gas products (including, but not limited to, CO2, butane, propane and natural gas), or generators producing electric power shall not be used within any detached, fully-enclosed and secure structure or residential structure.

3. Any detached, fully-enclosed and secure structure used for the cultivation of cannabis must have a ventilation and filtration system installed that shall prevent cannabis plant odors from detection at the property line. The ventilation and filtration system must be installed prior to commencing cultivation within the detached, fully-enclosed and secure structure or residential structure.

4. Any detached, fully-enclosed and secure structure or residential structure used for the cultivation of cannabis shall comply with Title 18 of the Redding Municipal Code.

5. There shall be no exterior evidence of cannabis cultivation occurring at the property as detected from the public right-of-way.

D. No license shall be issued when any of the following occur:

1. The license fee for cultivation at a private residence has not been paid. The fee for such license shall be established by resolution of the city council.

2. A license has already been issued for the private residence.

3. The applicant has failed to provide a written, notarized acknowledgement from the owner of the private residence that the owner consents to cultivation on-site.

4. The applicant has failed to provide the name of each person owning, leasing, occupying or having charge of the private residence where cannabis is cultivated.

E. Cannabis cultivation for purposes of commercial sale at any property zoned for residential use is prohibited. Notwithstanding the preceding, a primary caregiver may recover his or her costs of cultivation from his or her qualified patient. In such cases, costs of cultivation shall not include compensation for the labor of the primary caregiver.

F. No person cultivating cannabis at a private residence shall dispose of cannabis, or any of its component parts, at curbside. Cannabis shall not be disposed of by means of mulching, or similar organic process, outdoors. Cannabis shall not be stored outdoors. All cannabis and cannabis waste generated at the private residence, including chemical and organic waste, shall be disposed of in accordance with applicable laws and regulations.

G. The director may, in his or her sole discretion, deny any application for a license issued pursuant to this section or a renewal thereof and may suspend, revoke or further condition any license that has been issued, where he or she finds, based on articulated facts, that the issuance of a license would be detrimental to the public health, safety, or welfare or where there is demonstrated non-compliance with the minimum requirements of this section. The determination of the director shall be final. Review of any such determination shall be made pursuant to Section 6.12.620.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 3, 3-19-2019)

A. It is unlawful and a public nuisance for any person or association of persons to establish, operate or assume duties of a cannabis business without all valid and applicable local licenses or permits.

B. It is unlawful and a public nuisance for any person or association of persons to establish, operate or assume duties of a cannabis business without all valid and applicable licenses or permits issued by the State of California.

C. It is unlawful and a public nuisance for any person or association of persons to operate a cannabis business in violation of any license condition imposed by the director or in violation of any license condition imposed by the State of California.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Within ten calendar days of approval, every cannabis business shall submit to the director a copy of any license issued by the State of California or any local governmental entity to the cannabis business or any of its owners.

B. If any license issued to the cannabis business or any of its owners by the State of California or any local governmental entity is denied, suspended, modified, revoked or expired, the cannabis business shall notify the director within ten calendar days.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

The issuance of a license pursuant to this chapter shall require environmental review pursuant to Public Resources Code section 21000 et seq.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. No cannabis business license or license renewal shall be issued unless a nonrefundable application fee and a nonrefundable license fee in amounts to be set by resolution of the city council are paid.

B. A cannabis business license issued pursuant to this chapter is valid for a term of one year from the date that the license is issued. Renewal terms shall not exceed one year.

C. All fees authorized pursuant to this chapter are in addition to the license fees required by Chapter 6.02 of the Redding Municipal Code.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Each cannabis business and cannabis business location shall be separately licensed. Cannabis business licenses are nontransferable.

B. Only an owner of the applicant may submit an application for a cannabis business license or license renewal. An owner may apply for a cannabis business license or a cannabis business license renewal by filing an application with the director.

C. No person shall knowingly make a false statement of fact or knowingly omit any information that is required in an application for a commercial sale cannabis license.

D. The application shall be on a form approved by the director and shall include the following:

1. The license type the applicant is requesting.

2. Payment of a nonrefundable application fee to be established by resolution of the city council.

3. A description of the statutory entity or business form that will serve as the legal structure for the applicant; a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement; and the name and address of its agent for purposes of service of process.

4. A list of every fictitious business name the applicant is operating under including the address where the business is located.

5. The first and last name, primary phone number, date of birth and mailing address of each owner. If the license is to be held in the name of a business entity, the owner shall also provide the legal business name of the licensee.

6. The current name and primary and secondary telephone numbers and email addresses of at least one twenty-four hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the cannabis business.

7. If applicable, the business trade name ("DBA") of the applicant.

8. A list of the license types and the license number issued by the Bureau of Cannabis Control and all other state cannabis licensing authorities that the applicant holds, including the date the license was issued, the date the license will terminate and the licensing authority that issued the license.

9. Whether the applicant, or any owners, has been denied a license or has had a license suspended or revoked by the Bureau of Cannabis Control or any other state cannabis licensing authority. The applicant shall provide the type of license applied for, the name of the licensing authority that denied the application, and the date of denial.

10. The physical address of the premises where business will be conducted, the telephone number for the premises, and the website address and email address of the applicant's business.

11. The business' federal employer identification number.

12. The physical address of any other premises owned or operated by the applicant within the jurisdictional limits of the City of Redding and a brief summary of the business operations at each premises.

13. The applicant shall supply the following financial information:

A. A list of funds belonging to the applicant held in savings, checking, or other accounts maintained by a financial institution. The applicant shall provide for each account, the financial institution's name, the financial institution's mailing address, account type, account number and the amount of money in the account.

B. A list of loans made to the applicant. For each loan, the applicant shall provide the amount of the loan, the date of the loan, terms of the loan, security provided for the loan, and the name, address, and phone number of the lender.

C. A list of investments made into the applicant's commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, terms of the investment, and the name, address, and phone number of the investor.

D. A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis activity. For each gift, the applicant shall provide the value of the gift or description of the gift, and the name, address and phone number of the provider of the gift.

E. A complete list of every individual that has a financial interest in the cannabis business, as defined in Section 5004 of Title 16 of the California Code of Regulations, who is not an owner within the meaning of Section 5003 of Title 16 of the California Code of Regulations.

F. A complete list of every owner of the applicant, as defined in Section 5003 of Title 16 of the California Code of Regulations. Each individual named on this list shall submit the following information:

1. The full name of the owner.

2. The owner's title within the applicant entity.

3. The owner's date of birth and place of birth.

4. The owner's social security number or individual taxpayer identification number.

5. The owner's mailing address.

6. The owner's home, business, or mobile telephone number and email address.

7. The owner's current employer.

8. The owner's percentage of ownership interest held in the applicant entity.

9. Whether the owner has an ownership or a financial interest in any other commercial cannabis business licensed by the State of California.

10. A copy of the owner's government-issued identification that includes the name, date of birth, physical description and picture of the owner.

11. If applicable, a copy of any certificate of rehabilitation issued under Penal Code section 4852.01 or dismissal issued pursuant to Penal Code section 1203.4 or 1203.41.

12. If applicable, a detailed description of any suspension or revocation of a cannabis-related license or sanctions for unlicensed or unlawful cannabis activity by a state or local governmental agency against the applicant or any of its owners or any business entity in which the applicant or any of its owners was an owner or officer within the seven years immediately preceding the date of the application.

13. If applicable, a detailed description of any civil and/or criminal suit and/or judgment relating to unlawful cannabis activity against the applicant or any of its owners or a business entity in which the applicant or any of its owners was an owner or officer within the seven years immediately preceding the date of the application.

14. Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true and accurate. I understand that a misrepresentation of fact, whether intentional or not, is cause for rejection of this application, denial of the license, or revocation of a license issued.

15. A written, notarized statement from the owner of the proposed site where cannabis activity will be licensed evidencing unqualified consent to the applicant to operate a cannabis business on site. The statement must specify the street address and parcel number for the premises. The statement shall also contain the name, business address, email address and telephone number of the property owner(s) (whether business entity or individual).

16. If applicable, a copy of the rental agreement for the premises.

17. If the applicant is the landowner upon which the business premises is located, a copy of the title or deed to the property.

18. Evidence that the proposed business premises will be compliant with the locational restrictions set forth in Section 6.12.350 and the zoning set forth in Title 18 of the Redding Municipal Code.

19. Evidence of a valid seller's license number issued by the California Department of Tax and Fee Administration, if applicable. If the applicant has not yet received a seller's license, the applicant shall attest that the applicant is currently applying for a seller's license.

20. A premises diagram which meets the requirements set forth in Section 5006 of Title 16 of the California Code of Regulations.

21. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on premises of the cannabis business. The security plan must be prepared by a licensed security company or individual licensed by the State of California. The license number shall be on the face of the security plan. The security plan shall also require registration in the Redding Police Department's Security Camera Registration and Monitoring Program ("SCRAM").

22. A detailed plan describing the air treatment system, or other methods which will be implemented to completely prevent odors generated from cannabis from being detected outside the buildings on the cannabis business site.

23. A business operations plan including the following:

A. A description of how the cannabis business will operate in accordance with the Redding Municipal Code.

B. A neighborhood responsibility plan which address the potential adverse impacts of cannabis cultivation on the surrounding area.

C. A description of the exterior of the cannabis business premises including, but not limited to, a description of any exterior signage to be used at the premises.

26. Authorization and consent for City of Redding staff to seek verification of the information contained within the application.

27. An agreement in a form approved by the city attorney whereby the applicant:

A. Releases the City of Redding, its agents, officers, elected officials and employees from any and all claims, injuries, damages or liabilities of any kind arising from any repeal or amendment of this chapter or any other provision of the Redding Municipal Code, and any arrest or prosecution of the applicant or its managers, agents, employees, members or volunteers for violation of state or federal laws; and

B. Defends, indemnifies and holds harmless the City of Redding, and its agents, officers, elected officials and employees from and against any and all claims or actions brought by adjacent or nearby property owners or any other parties for any damages, injuries or other liability of any kind arising from operations at the cannabis business.

28. Any other document or information which the director deems necessary for consideration of the application.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 4, 3-19-2019)

A. To renew a cannabis business license, a completed license renewal form, payment of the cannabis business license application fee, payment of the cannabis business license fee, and, if applicable, the late fee required by subsection D of this section shall be received by the City of Redding no earlier than sixty calendar days before the expiration of the license and no later than 5:00 p.m. on the last business day before the expiration of the license. Failure to receive a notice for license renewal does not relieve a licensee of the obligation to renew all licenses as required.

B. An application for a cannabis business license renewal shall contain the following:

1. The name of the licensee. For licensees who are individuals, the applicant shall provide the first and last name of the individual. For licensees who are business entities, the licensee shall provide the legal business name of the applicant.

2. The license number and expiration date.

3. The licensee's address of record and cannabis business premises address.

4. An attestation that all information provided to the City of Redding in the original application for a license is accurate and current.

C. In the event the license is not renewed prior to the expiration date of the license, the licensee must not sell, transfer, transport, manufacture, test or distribute any cannabis or cannabis products until the license is renewed.

D. A licensee may submit a cannabis business license renewal application up to thirty calendar days after the license expires. In addition to the application fee for renewal of the cannabis business license, the applicant submitting a renewal application pursuant to this subdivision shall pay a late fee equal to fifty percent of the application license fee. The payment of a late fee shall not be grounds for a defense against prosecution or enforcement of the Redding Municipal Code on the basis that the licensee operated a cannabis business without a valid or unexpired license nor shall it be considered as a set-off to any assessment, fine, penalty or recoupment of costs of enforcement attributable to said violation.

E. A license that has expired and has not been renewed within thirty calendar days after expiration shall be deemed to have been forfeited.

F. Any time limitation set forth in this section shall not be deemed to be tolled for the duration of time during which the City of Redding considers the license renewal application.

G. Review of any decision by the director to deny a request to renew a cannabis business license shall be pursuant to Section 6.12.620.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Upon approval of a license or renewal of a cannabis business license, the director may impose conditions in excess of the requirements set forth in this chapter including, but not limited to, conditions relating to the operation of any cannabis business and restrictions relating to the deployment or use of the types of equipment used on site.

B. During the term of any cannabis business license, the director may impose additional conditions on a license when reasonably necessary to abate a violation of the Redding Municipal Code or to protect the public health, safety or welfare.

C. Review of any decision by the director to impose additional conditions on a license pursuant to this section shall be pursuant to Section 6.12.620.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. The director may deny a license or a renewal of a license for any cannabis business if he or she determines that one or more of the following circumstances exist:

1. The applicant has not paid all fees required for consideration of the application and inspection of the premises of the cannabis business;

2. The application received is incomplete, filed late, or is otherwise not responsive to the requirements of this chapter;

3. The application contains a false or misleading statement or omission of a material fact;

4. The applicant or any of its owners has unpaid and overdue fees, taxes or administrative penalties imposed for violations of the Redding Municipal Code;

5. The applicant, or any of its owners, has an unpaid civil judgment imposed for violation(s) of the Redding Municipal Code;

6. The applicant or any of its owners is delinquent on any fee, charge for service or tax levied by the State of California or the City of Redding;

7. The applicant, or any of its owners or persons with a financial interest in the applicant, has, within the seven years preceding the date the application is filed with the director, been sanctioned by a state licensing authority or a city, county, or city and county for unlawful cannabis-related activity or has had a license suspended or revoked pursuant to this chapter in the seven years immediately preceding the date the application is filed with the City of Redding;

8. The applicant has been denied a license or other authorization to engage in commercial cannabis activity by a state or local licensing authority.

9. The applicant, any owner of applicant or person having a financial interest in the applicant is a person employed by the City of Redding when the duties of such person have to do with the enforcement of the Redding Municipal Code, the laws of the State of California or that of the United States of America.

10. The applicant, or any of its owners or persons having a financial interest in the applicant, has been convicted of any crime set forth in Business and Professions Code section 26057(b)(4), Fish and Game Code sections 12025 or 12025.1, Penal Code section 186.22 or any other offense which is substantially related to the qualifications, functions, or duties of the business for which application is made. In determining whether such offense is "substantially related," the director shall consult with the city attorney and thereafter apply the analysis set forth in section 5017 of Title 16 of the California Code of Regulations.

11. The applicant's premises or the operation of the applicant's cannabis business, as described in its application, would fail to comply with the standards set forth in the Redding Municipal Code or state law.

12. The applicant's premises is substantially different from the diagram submitted by the applicant, in that the size, layout, location of common entryways, doorways or passage ways, means of public entry or exit, or limited access areas within the licensed premises is not the same.

13. The applicant denied City of Redding personnel access to the premises for purposes of inspection.

14. The applicant, at the time of application, is in violation of any provision of the Redding Municipal Code.

15. Operation of the cannabis business is a threat to the public health, safety or welfare.

B. Upon denial of an application for a license or renewal of a license, the director shall notify the applicant in writing with the reasons for denial and the right to contest the determination of denial pursuant to the procedures set forth in Section 6.12.620.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. In the event of the death, incapacity, receivership, assignment for the benefit of creditors of a licensee, or other event rendering a licensee incapable of performing the duties associated with the license, the licensee's success in interest notify the director in writing within thirty calendar days.

B. To continue operations or surrender the existing license, the successor in interest shall submit to the director the following:

1. The name of the successor in interest.

2. The name of the licensee for which the successor in interest is succeeding and the license number.

3. The phone number, mailing address and email address of the successor in interest; and

4. Documentation demonstrating that the licensee is incapable of performing the duties associated with the license, such as a death certificate or a court order finding the licensee lacks capacity, and documentation demonstrating that the individual making the request is the licensee's successor in interest such as a court order appointing guardianship or will or trust agreement.

C. The director may give the successor in interest written approval to continue operations for a period of time to be determined by the director if:

1. The successor in interest has applied for a license from the City of Redding for the premises and that application is under review; or

2. The successor in interest needs additional time to destroy or sell cannabis goods.

D. Approval to continue operations on a temporary basis or for a defined period of time gives no vested right to continue operations thereafter.

E. The director may deny approval to continue operations based upon the criteria set forth in Section 6.12.110.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Each licensee shall have a designated premises for the licensee's commercial cannabis activity which is subject to unannounced inspection by the City of Redding.

B. A cannabis business licensee may occupy the same licensed premises and operate under two or more separate commercial cannabis licenses in that same licensed premises under the following conditions:

1. The cannabis business licensee has been issued an adult-use license and medical cannabis license issued by the State of California for the identical type of commercial cannabis activity;

2. The cannabis business licensee who holds both licenses is identical in name, business formation and ownership; and

3. Records for the adult use license and medical cannabis license issued by the State of California are kept separately.

C. A cannabis business licensee shall not, without the prior written approval of the director, make a physical change, alteration, or modification of the licensed premises that alters the licensed premises or the use of the licensed premises from the premises diagram filed with the license application. Material or substantial changes, alterations or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway or passage alters or changes limited-access areas within the licensed premises.

D. A cannabis business licensee whose premises is to be materially or substantially changed, modified, or altered is responsible for filing a request for premises modification with the director. The request shall be in writing and include:

1. A new premises diagram that conforms to the requirements set forth in Section 5006 of Title 16 of the California Code of Regulations.

2. A fee to be established by resolution of the city council.

3. Any additional documentation or information that the director deems necessary to consider the request.

E. A licensee shall not sublet or otherwise transfer control over any portion of the licensed premises to another without the prior permission of the director.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 5, 3-19-2019)

Except as permitted by the director, each cannabis businesses shall be located in a stand-alone structure which does not share common walls with another structure. Notwithstanding the preceding, a cannabis business may be co-located and share common walls with one or more other cannabis businesses only if each such cannabis business is separately licensed by the City of Redding and the State of California.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 6, 3-19-2019)

A. With the exception of changes to standard operating procedures, every licensee shall notify the director in writing within ten calendar days of any change to any item listed in the application. The notification shall be signed by an owner.

B. Licenses are not transferable. No change of owners shall occur if the director determines that the new owner(s) has a disqualifying conviction within the meaning of Section 6.12.110.A.10. or is otherwise barred from ownership in the licensee due to operation of this chapter.

C. No person or entity may gain a financial interest in the licensee if said person or entity is determined by the director to have a disqualifying conviction within the meaning of Section 6.12.110.A.10. or is otherwise barred by reason of this chapter.

D. If one of more of the owners of a licensee change, a new license application and fee shall be submitted to the City of Redding within ten business days of the effective date of the ownership change. A change in ownership occurs when the person receiving its interest in the cannabis business meets the definition of an owner, as defined in Section 6.12.010. A change in ownership does not occur when one or more owners leave the business by transferring their ownership interest to the other existing owner(s).

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis business licensee shall ensure that the director is notified in writing of the criminal conviction of a licensee, owner, or employee or when a licensee, owner, or employee has been charged with a criminal offense. Notice shall either be by mail or electronic mail and shall occur within forty-eight hours of the conviction or charge. The written notification shall include the date of conviction or charge, the court docket number, the name of the court in which the licensee was convicted or charged, and the specific offense(s) for which the licensee was convicted or charged.

B. A cannabis business licensee shall ensure that the director is notified in writing of a civil penalty or judgment rendered against the licensee or any owner either by mail or electronic mail, within forty-eight hours of delivery of the verdict or entry of judgment, whichever is earlier. The written notification shall include the date of verdict or entry of judgment, the court docket number, the name of the court in which the matter was adjudicated, and a description of the civil penalty or judgment rendered against the licensee.

C. A cannabis business licensee shall ensure that the director is notified in writing of the revocation or suspension of a license or other authorization for a cannabis business issued by a local governmental agency or the State of California within forty-eight hours of receiving notice of the revocation. The written notification shall include the name of the governmental agency involved, a written explanation of the proceeding or enforcement action, and the specific violation(s) that led to revocation or suspension.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis business licensee shall notify the director and the chief of the Redding Police Department within twenty-four hours of discovery of any of the following situations:

1. The licensee discovers a significant discrepancy, as defined in Section 6.12.010, in its inventory.

2. The licensee becomes aware of, or has reason to suspect, diversion, theft, loss or any other criminal activity pertaining to the operations of the licensee by any owner, employee, agent or volunteer of the cannabis business or by any third party.

3. The licensee becomes aware of, or has reason to suspect, any breach of security.

B. The notification required by this section shall be in writing and include the date and time of discovery of the occurrence of the theft or loss, the date of the occurrence of the theft or loss and a description of the incident including, when applicable, the items that were taken or lost.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. All persons on the site of a cannabis business, except for employees and those doing business with the cannabis business, must be escorted at all times by the licensee or employee of the cannabis business when in the limited-access area of the premises.

B. All agents, officers, employees or other persons acting for, or employed by, a licensee shall display an identification badge issued by the licensee at all times while on site at the cannabis business.

C. A cannabis business shall have an operational video surveillance system that meets the standards of operation, storage, and surveillance set forth in Section 5044 of Title 16 of the California Code of Regulations.

D. Surveillance recordings shall be kept for a minimum of ninety days and shall be subject to inspection and copy by the City of Redding. Recordings shall be kept in a manner that permits the City of Redding to view and obtain copies of the recordings at the licensed premises immediately upon request.

E. All cannabis retailers shall retain and deploy security personnel in accordance with Section 5045 of Title 16 of the California Code of Regulations.

F. Licensees shall ensure that the limited access areas of the cannabis business, as defined in Section 5401 of the California Code of Regulations, can be securely locked using commercial-grade, nonresidential door locks. A licensee shall also use commercial-grade, nonresidential door locks on all points of entry and exit to the licensed premises.

G. Licensees shall maintain an alarm system in accordance with Section 5047 of Title 16 of the California Code of Regulations and make available to the City of Redding all information related to the alarm system, monitoring, and alarm activity.

H. In the event that a licensee is delivering tax proceeds to the City of Redding in excess of ten thousand dollars, the licensee shall either procure licensed, armed transport to the city treasurer or shall deliver said tax proceeds to armed transport retained by the City of Redding. If the City of Redding procures armed transport of tax proceeds, the licensee shall pay to the City of Redding within thirty calendar days of the date of the invoice all invoices for such service.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2605, § 1, 6-4-2019)

All cannabis business licensees shall comply with the track and trace system established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Destruction of cannabis goods shall be in accordance with Sections 5054 and 5055 of Title 16 of the California Code of Regulations.

B. A cannabis business licensee shall not sell cannabis waste, as such waste is defined in Section 5000(d) of Title 16 of the California Code of Regulations.

C. Cannabis business licensees shall comply with all cannabis waste management practices set forth in Section 5055 of Title 16 of the California Code of Regulations.

D. Cannabis waste shall not be deposited at curb-side but shall either be delivered by the licensee to a City of Redding disposal site or the licensee shall arrange with the City of Redding for pick-up of the cannabis waste, if available. Delivery of cannabis waste to a City of Redding disposal site shall be accomplished by the licensee and shall not be contracted to a third party.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

All cannabis businesses shall install a ventilation and filtration system to prevent all odors generated from the cannabis business from escaping from the buildings on site, such that the odor cannot be detected outside of the building(s). The ventilation and filtration system must be approved by the building official and installed prior to commencing operations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

The cannabis business licensee shall display all applicable, valid and unexpired licenses issued by the State of California and the City of Redding inside the lobby or waiting area of the main entrance to the cannabis business site. Licenses shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the site.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. With the exception of cannabis retail licensees, all cannabis business licensees shall post in the lobby of the cannabis business site signs that state the following:

1. "This site is not open to the public."

2. "Retail sales of any goods and services is prohibited."

3. "Except as specifically permitted by Redding Municipal Code 6.12.440, persons under the age of twenty-one are prohibited from entering this site."

4. "Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited."

5. "Not for kids or teens! Starting cannabis use young or using frequently may lead to problem use and, according to the Centers for Disease Control, may harm the developing teen brain. GOVERNMENT HEALTH WARNING."

B. Cannabis retail licensees shall post the signs required in subdivisions A.3. through A.5., inclusive, of this section.

C. Each sign described in this Section shall be at least eight inches by ten inches in size and must be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the cultivation site.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. No cannabis business shall place any advertising or marketing in broadcast, cable, radio, print or digital communications unless such marketing or advertising meets the requirements of Section 5040 of Title 16 of the California Code of Regulations.

B. Upon request of the director, the licensee shall provide the audience composition data required by Section 5040 of Title 16 of the California Code of Regulations within the time frame specified by the director.

C. No licensee shall place advertising or marketing from the licensee or on behalf of the licensee involving direct, individualized communication or dialogue, unless the licensee meets the requirements set forth in Section 5041 of Title 16 of the California Code of Regulations.

D. If the director determines that audience composition data for advertising provided by a licensee or on behalf of a licensee does not meet the requirements of Section 5040 of Title 16 of the California Code of Regulations, that any individualized communication or dialogue does not meet the requirements of Section 5041 of Title 16 of the California Code of Regulations, or the licensee fails to provide audience composition data to the director within the time specified, the licensee shall remove all such advertising or marketing placement within twenty-four hours of written notice by the director.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. No cannabis business licensee shall open their business to the public.

B. No cannabis business licensee shall allow anyone on the cannabis business site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors and cannabis transporters.

C. A manager must be on the cannabis business site at all times that any other person is on site, except after business hours when a security guard is on the site.

D. Any person other than managers or staff who are on the cannabis business site must sign in, wear a visitor badge provided by the licensee, and be escorted on the site by a manager or other staff at all times. Notwithstanding the preceding, state, county and city officials performing their lawful duties on-site are exempt from the requirements set forth in this subsection.

E. This section shall not apply to cannabis retailers possessing valid and unexpired licenses issued by the City of Redding.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis business licensee shall not store cannabis or cannabis goods outdoors.

B. Employee breakrooms, changing facilities and bathrooms shall be separated from any cannabis or cannabis goods storage areas.

C. Cannabis goods shall only be stored at a licensed premises.

D. Storage of cannabis goods must be ancillary to the business of the licensee, and storage of cannabis goods shall not be licensed by the director as a stand alone cannabis business.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. No person under the age of twenty-one years shall be on the site of a cannabis business or participate in the operations of a cannabis business in any capacity including, but not limited to, as manager, staff, employee, contractor, agent or volunteer.

B. Notwithstanding subdivision A., a person who has attained eighteen years of age and has on his person an identification card issued pursuant to Health and Safety Code section 11362.71 may enter a retail cannabis business as a customer.

C. Cannabis business licensees are strictly liable for any violation of this section. Proof of intent or scienter shall not be required in establishing a violation of this section.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis business licensee shall abide by the attire and conduct requirements set forth in Sections 5806 and 5807 of Title 16 of the California Code of Regulations.

B. No person shall smoke, ingest or otherwise consume cannabis in any form at a cannabis business or within twenty feet of a cannabis business.

C. No person shall possess, consume, or store any alcoholic beverage at any cannabis business.

D. Cannabis business licensees are strictly liable for any violation of this section. Proof of intent or scienter shall not be required in establishing a violation of this section.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

No person shall give, sell, distribute, or otherwise transfer any cannabis in any manner that violates the laws of the State of California or the City of Redding.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis business shall maintain all the records required for retention by Section 5037 of Title 16 of the California Code of Regulations for a period of at least seven years.

B. Records shall be kept in a manner that allows the records to be produced for the City of Redding at the cannabis business premises in either hard copy or electronic form, whichever the City of Redding requires.

C. A licensee may contract with a third party to provide custodial or management services of the records of the cannabis business. Such a contract shall not relieve the licensee of the licensee's responsibilities under this section.

D. A cannabis business licensee shall report any loss, damage, or destruction of these records to the Director within twenty-four hours of the loss, damage or destruction.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. The cannabis business licensee shall prevent and immediately abate conditions at the cannabis business that constitute a nuisance or other violation of the Redding Municipal Code.

B. The cannabis business licensee shall maintain the exterior of the cannabis business site, including any parking lots and landscaped areas under the control of the licensee, free of litter, debris, trash and unused equipment.

C. The cannabis business licensee shall properly store and dispose of all waste generated at the cannabis business site, including chemical and organic waste, in accordance with all applicable laws and regulations.

D. The cannabis business licensee shall remove all graffiti from the cannabis business site and parking lots under the control of the licensee within seventy-two hours of its application.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Unless otherwise provided for in this chapter, representatives from the City of Redding including, but not limited to, members of the Redding Police Department, the office of the city attorney, the code enforcement division and their agents may test, enter and inspect the property, vehicles, structures, documents, facilities and cannabis goods of every cannabis business during the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday, or at any other reasonable time during business hours to ensure compliance and enforcement of the Redding Municipal Code. Notwithstanding the preceding, the inspection and copying of private medical records shall be made available only pursuant to a search warrant, subpoena or court order.

B. Prior notice of an inspection, investigation, review, or audit is not required.

C. It is unlawful and cause for immediate suspension or revocation of the license for any licensee, property owner, landlord, lessee, cannabis business, and/or its owner, agent or employee to refuse to allow, impede, obstruct or interfere with an inspection.

D. When a requirement is established pursuant to this chapter for the inspection and/or copy of any record, the record shall be delivered immediately upon demand by City of Redding personnel unless it would be unreasonable to access such records due to the time constraint's of the licensee's business.

E. This section shall not be construed to deprive a licensee of any privilege guaranteed by the Fifth Amendment to the Constitution of the United States.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

No cannabis or cannabis products on the site of a cannabis business shall be visible with the naked eye from outside the licensed premises.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

Except as otherwise permitted by the director for purposes of facilitating a donation program, all cannabis and any product containing cannabis that is not sold into the market shall be made unusable and unrecognizable prior to removal from the cannabis business in compliance with all applicable federal, state and local laws.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Except as otherwise provided in this section, no cannabis business shall be located within six hundred feet of a school providing instruction in kindergarten or any grade one through twelve, inclusive, public park, public library or youth-oriented facility.

B. Notwithstanding Subsection A, no cannabis retailer shall be located within one thousand feet of a school providing instruction in kindergarten or any grade one through twelve, inclusive, public park, public library or youth-oriented facility.

C. Distances shall be measured from the property line of a parcel where the cannabis business is located to the nearest property line that is occupied by a school providing instruction in kindergarten or any grade one through twelve, inclusive, public park, public library or youth-oriented facility.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. It is unlawful and a public nuisance to cultivate cannabis unless specifically authorized by the Municipal Code and that person has been issued all applicable licenses for cultivation by the State of California and the City of Redding.

B. Every cannabis plant cultivated in violation of this section shall constitute a separate violation.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2628, § 1, 9-15-2020)

It is unlawful to cultivate cannabis unless the site of cultivation meets the following requirements:

A. All entrances into the buildings on the cultivation site shall be locked at all times with entry controlled by the commercial sales cannabis cultivation licensee's managers and staff.

B. The cultivation site shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas.

C. All cultivation areas in any building on the cultivation site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the licensee.

D. Each building with a cultivation area shall have an area designed for the secure transfer of cannabis from the cultivation area to a vehicle for transportation.

E. Each building with a cultivation area shall have adequate storage space for cannabis that has completed the cultivation process or is otherwise not being cultivated. The storage areas shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the licensee.

F. Each building with a cultivation area shall have all utilities installed, maintained and operated in accordance with the Redding Municipal Code. Volatile solvents shall not be used or located within any cultivation area. The building official may authorize the use of CO2 generators upon a finding that there is not threat to the public health and safety.

G. Cultivation area shall not exceed that authorized by license issued by the State of California. Notwithstanding, the director may, in his or her sole discretion, reasonably limit the cultivation area otherwise permitted by license issued by the State of California.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

It is unlawful and a public nuisance for any person to sell cannabis goods unless that person has been issued all applicable valid and unexpired licenses for cannabis retail sale by the State of California and the City of Redding.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. No more than ten retailers of adult use cannabis and/or medical cannabis businesses shall be licensed or allowed to operate within the jurisdictional limits of the City of Redding. For purposes of this subsection, a premises offering commercial sale of both adult use and medical cannabis shall be considered as one cannabis business.

B. The city manager is hereby given discretion to authorize fewer than ten retail adult use cannabis and/or medical cannabis businesses as he/she determines necessary to protect the public health, safety and welfare.

C. There shall be no limit on the number of commercial cultivators, manufacturers, processors, distributors, testing laboratories, storage facilities or deliverers of cannabis.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Selection of cannabis retailers for licensure shall be made by means of a competitive selection process. The city manager shall establish and apply neutral criteria by which applications shall be assessed.

B. Selection of cannabis retailers for consideration of licensure shall be made by the city manager with subsequent award of licensure to be made by the director. In the alternative, the city manager may consider applications for cannabis retailers by means of a selection committee in which case, reference in this section to the city manager shall mean the city manager's selection committee.

1. Except as permitted by the city manager, any cannabis retailer applicant selected by the city manager who fails to satisfy all licensure requirements and receive a license from the director within ninety calendar days of selection by the city manager forfeits further consideration of the its application. Applicants denied licensure on this basis shall be permitted to reapply if a competitive selection process is later initiated by the city manager.

C. Notice of the opportunity to apply for a cannabis retail business license shall be published by means determined by the city manager as reasonably calculated to provide public notice of the opportunity to apply.

D. The city manager may designate periods of time for consideration of applications for retail cannabis business licenses as deemed necessary and prudent, and, in his/her sole discretion, may decline to receive applications for a retail cannabis business license outside of the designated time period.

E. After receipt of an application that is submitted in compliance with Section 6.12.080, the application shall be placed into a pool of applicants for further review and selection shall be made on merit. Applications that do not meet the requirements of Section 6.12.080 or are submitted outside of the designated application period shall be denied, and the city manager shall notify the applicant in writing of the basis for the denial.

F. In addition to the information required of cannabis business applicants by Section 6.12.080, applicants for a retail license shall submit information sufficient to inform the city manager on the following criteria:

1. Ability to operate a business, including but not limited to education, knowledge, and experience with:

A. Regulated industries;

B. Agriculture or horticulture;

C. Commercial manufacturing;

D. Pharmaceutical companies;

E. Owning, operating or working in a medical or retail cannabis business;

F. Creating and implementing a business plan, including a timeline for opening a business;

G. Creating and implementing a financial plan;

H. Retail sales;

I. Secure inventory tracking and control;

J. Owning or managing a business that required twenty-four hour security monitoring;

K. Any other experience the applicant considers relevant.

2. Plan for operating a cannabis retail business including, but not limited to, a timeline for opening a retail location;

3. Proof of financial stability and access to financial resources, including, but not limited to:

A. Legal sources of finances immediately available to begin operating a retail cannabis business;

B. A summary of financial statements in businesses previously or currently owned or operated by the applicant;

C. A financial plan for operating a retail cannabis business in the City of Redding;

D. Good credit history; and

E. History of bankruptcy by the applicant or entities owned or operated by the applicant.

4. Ability to comply with the operational requirements set forth in this chapter.

5. Any other information received by an applicant which is probative on the subject of competence to lawfully operate a cannabis retail business.

G. The city manager may undertake oral interviews with applicants should he/she determine that interviews will assist in the selection process.

H. Cannabis retail business applicants may supplement the information required by Section 6.12.080 and this section with any information the applicant believes probative to demonstrate its competence to operate a cannabis retail business.

I. The city manager may establish deadlines for the submission of information by a cannabis retail business applicant. If such deadlines are established, no additional materials or information may be submitted by an applicant once the time period for applications has ended.

J. The city manager shall award a cannabis retailer license to the highest ranking applicant or applicants without preference as to whether the cannabis retailer is a storefront retailer or delivery-only retailer, and shall notify each of the applicants of their respective score and/or ranking. Notwithstanding the preceding, the city manager may, in lieu of scoring, opt to use a system of forced ranking to rank applicants.

K. The city manager may, but is not required to, hold applications in reserve to offer cannabis retail business licenses to the next highest ranked applicants if an applicant who has been awarded a license fails to pay the license fee, commence business operations as required in Section 6.12.410 or whose license has been revoked pursuant to Section 6.12.610. In the alternative, and if there remain opportunities for award of cannabis retail business licenses, the city manager may reject all applications placed on hold and determine that the process set forth in this section shall be re-instituted and another round of applications considered.

L. The city manager may establish minimum criteria for qualification for a retail license but shall not be obligated to award a retail cannabis license based on an applicant's satisfaction of said minimum criteria.

M. With the exception of the material in the application and materials submitted pursuant to this section that relate to the finances and criminal background of the applicant and its owners, all information required by this section shall be considered public record subject to disclosure under the California Public Records Act.

N. Any applicant aggrieved by the decision of the city manager may obtain review of the within ninety days of notice by filing with the Shasta County Superior Court a petition for review pursuant to California Code of Civil Procedure section 1094.5. For purposes of this section, notice shall be the date that the decision of the city manager is deposited in the United States mail.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 7, 3-19-2019)

A. If a cannabis retailer has not opened at the approved location and commenced operations within ninety calendar days of being issued a license pursuant to this chapter, the license shall be deemed expired and void. The City of Redding shall provide written notice to the cannabis retailer that the license has expired and is void. Upon a factual showing of good cause by the cannabis retailer for its failure to commence operations within the required time, the director may grant extensions of up to one hundred and twenty calendar days to commence operations based upon a finding of good cause for the extension. That determination shall be final.

B. Notwithstanding Section 18.46.020 of the Redding Municipal Code, any cannabis retailer licensee who surrenders, abandons or quits the licensed premises, or who closes the licensed premises for a period exceeding thirty consecutive calendar days, shall within ten business days after closing, surrendering, quitting or abandoning the licensed premises, surrender its cannabis license to the City of Redding. The City of Redding may seize the cannabis business license of a cannabis retailer who fails to comply with the surrender provisions of this section and may proceed to revoke the license. Upon a showing of good cause by the cannabis retailer, the director may grant a one-time only extension of up to ninety calendar days to the cannabis retailer to reestablish operations at the premises of the cannabis business premises. The determination of the director shall be final.

C. "Good Cause" includes, but is not limited to, termination of the cannabis business's lease by the property owner; a change in federal, state or local law that now prohibits use of the previously approved location as a cannabis business; foreclosure or sale of the approved location resulting in the cannabis business's inability to enter into a new lease; damage to or deterioration to the building that prevents the safe use and/or occupation of the structure until all required repairs are made. However, if the cannabis business is responsible for the condition, including any non-licensed construction or alteration of the structure or non-licensed electrical, mechanical or plumbing, "good cause" shall not be found.

D. A determination by the director that a licensee has failed to commence operations, or has surrendered, abandoned or quit the premises is subject to review pursuant to Section 6.12.620.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis retailer - delivery only licensee shall conduct retail sales exclusively by delivery. The entire premises of such licensee shall be considered a retailer limited-access area within the meaning of Section 6.12.430.

B. The licensed premises of a non-storefront retailer licensee shall be closed to the public.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis retailer shall comply with all of the requirements set forth in Section 5401 of Title 16 of the California Code of Regulations. Any person who is not an employee of the licensee, but is an authorized visitor within the meaning of Section 5401 of Title 16 of the California Code of Regulations, shall prominently wear a badge issued by the licensee identifying that person as an authorized visitor.

B. The retailer shall make available to the City of Redding upon request all logs of visitors required by Section 5401 of Title 16 of the California Code of Regulations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Individuals shall be granted access to the retail area only to purchase cannabis goods after the retailer or an employee of the retailer has verified that the individual is at least twenty-one years of age and has a valid proof of identification, or that the individual is at least eighteen years of age, has valid proof of identification and a valid identification card issued pursuant to Health and Safety Code section 11362.71.

B. Acceptable forms of identification shall include a document or identification card issued by a governmental entity that contains the name, date of birth, physical description and picture of the person.

C. The cannabis retailer or its employees shall be physically present in the retail area at all times when individuals who are not employees of the retailer are in the retail area. For purposes of this section "retail area" shall mean the area of the premises where cannabis goods are displayed for sale or any place where a thing of value is exchanged for a cannabis good.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis retailer shall sell and/or deliver cannabis goods only between the hours of 8:00 a.m. and 8:00 p.m.

B. At any time the premises is not open for retail sales, the cannabis retailer shall ensure the following:

1. The premises is securely locked with commercial-grade, non-residential door locks.

2. The alarm system required by Section 6.12.180.G. shall be activated when the retailer or its employees are not on the licensed premises.

3. Only employees and contractors of the retailer are allowed on the premises.

C. A cannabis retailer shall accept shipments of cannabis goods only between the hours of 6:00 a.m. to 10:00 p.m. During business hours shipments of cannabis goods shall not enter the premises through an entrance or exit that is available for public use.

D. A cannabis retailer shall comply with the limitations with regard to the amounts of cannabis that may be sold in one day to a customer, as set forth in Section 5409 of Title 16 of the California Code of Regulations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A cannabis retailer shall only sell adult-use cannabis goods to individuals who are at least twenty-one years of age and medicinal cannabis goods to individuals who are at least eighteen years of age and who present an identification card issued pursuant to Health and Safety Code section 11362.71.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. Cannabis goods for inspection and sale shall only be displayed in the retail area.

B. Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of retailer personnel. A container must be provided to the customer by the retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer.

C. Cannabis goods removed from the packaging for display shall not be sold, shall not be consumed and shall be destroyed pursuant to Section 5054 of Title 16 of the California Code of Regulations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis retailer shall not make any cannabis goods available for sale or delivery to customers unless the cannabis goods were received from a distributor licensed by the State of California; the retailer has verified that the cannabis goods have not exceeded their expiration or sell-by date if one is provided; and, in the case of manufactured cannabis products, the product complies with all requirements of Business and Professions Code section 26130 and other relevant laws.

B. A cannabis retailer may accept customer return of cannabis goods but only in accordance with Section 5410 of Title 16 of the California Code of Regulations.

C. A cannabis retailer shall not provide free cannabis goods to any person except as licensed for medicinal cannabis pursuant to Section 5411 of Title 16 of the California Code of Regulations and as permitted in writing by the director.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis retailer shall document its inventory in accordance with Section 5423 of Title 16 of the California Code of Regulations and reconcile its inventory in accordance with Section 5424 of Title 16 of the California Code of Regulations at least once every fourteen days.

B. Pursuant to Section 6.12.300, all inventory records and records of inventory reconciliation shall be retained for a period of seven years and shall be produced for inspection and copy upon request of the City of Redding.

C. A retailer shall report in writing a significant discrepancy in inventory within twenty-four hours of discovery to the director.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A retailer shall maintain a record of sales for each transaction pursuant to Section 5425 of Title 16 of the California Code of Regulations.

B. Pursuant to Section 6.12.300, all records of sale shall be kept for a period of seven years after the transaction and shall be made available for inspection and copy by the City of Redding.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

With the exception of alcohol and tobacco, a cannabis retailer may sell non-cannabis products at a licensed premises.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A cannabis retailer who possesses all valid and unexpired licenses from the City of Redding and the State of California may sell live plants but only under the conditions set forth in Section 5408 of Title 16 of the California Code of Regulations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. A cannabis retailer shall not accept, possess, or sell cannabis goods that are not packaged as they will be sold at final sale.

B. A cannabis retailer shall not package or label cannabis goods.

C. A cannabis retailer shall ensure that its customers do not leave the cannabis retailer's premises unless the cannabis goods are placed in an opaque exit package.

D. It is unlawful for any person to remove cannabis goods from the opaque packaging while on the retailer premises when such removal is visible from the exterior of the retailer building.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. It is unlawful to deliver cannabis goods within the jurisdictional limits of the City of Redding unless delivery is made by a cannabis retailer licensed by the City of Redding.

B. All deliveries shall comply with Sections 5415 through 5421, inclusive, of Title 16 of the California Code of Regulations.

C. Any motor vehicle used by a retailer to deliver cannabis goods is subject to inspection by City of Redding personnel. Vehicles used to deliver cannabis goods may be stopped and inspected by City of Redding personnel at any licensed premises or during delivery.

D. Pursuant to Section 6.12.300, the retailer shall retain delivery receipts, as described in Section 5420 of Title 16 of the California Code of Regulations for a period of seven years after delivery. All such receipts are subject to inspection and copy by the City of Redding.

E. All deliveries shall be accomplished within the hours of operation set forth in Section 6.12.450.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. No person or entity shall perform the duties of a distributor without having a valid and unexpired license for said activity from the State of California and without having a valid and unexpired license for such activity from the City of Redding.

B. A distributor shall not store or distribute non-cannabis goods on or from the premises licensed for distribution of cannabis goods.

C. A distributor may provide cannabis goods storage-only services to a licensed cultivator, manufacturer or another distributor, unrelated to the quality assurance and laboratory testing processes.

D. Cannabis goods batches for testing shall be stored and labeled in accordance with Section 5302 of Title 16 of the California Code of Regulations.

E. A distributor may package, re-package, label and re-label cannabis for retail sale.

F. A distributor shall not package, re-package, label or re-label manufactured cannabis products except for when the distributor also holds a manufacturing license issued by the State of California and a license issued by the City of Redding, and is re-packaging, labeling or re-labeling its own manufactured cannabis products. Notwithstanding the preceding, if it is determined during laboratory testing that a manufactured product is labeled with the incorrect amount of THC per package but is within the THC limits for sale, the distributor may re-label the package with the accurate THC amount.

G. After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor's licensed premises to select a representative sample for laboratory testing. The distributor shall thereafter comply with Section 5305 of Title 16 of the California Code of Regulations.

H. A distributor shall not transport cannabis goods to a retailer unless the representative batch from the manufacturer or cultivator meets the specifications set forth in Chapter 6 of Title 16 of the California Code of Regulations. The distributor shall conduct a quality-assurance review pursuant to Section 5307 of the California Code of Regulations prior to transport to a retailer.

I. A distributor shall satisfy the insurance requirements set forth in Section 5308 of the California Code of Regulations.

J. A distributor shall reconcile all inventories of cannabis goods at least once every fourteen days and shall keep an inventory log which satisfies the requirements set forth in Section 5309 of Title 16 of the California Code of Regulations.

K. In addition to the records required of a cannabis business, a distributor shall also maintain the records required by Section 5310 of Title 16 of the California Code of Regulations. All such records shall be kept on the site of the licensed premises and shall be subject to examination and copy by the City of Redding.

L. Transportation of cannabis goods shall be pursuant to the requirements set forth in Section 5311 of the California Code of Regulations. Vehicles and trailers transporting cannabis goods are subject to inspection by the City of Redding at any licensed premises or during transport at any time.

M. A distributor shall not transport cannabis goods except in the conduct of business activity authorized herein by license. During transport, the distributor shall only travel between licensees shipping or receiving cannabis goods and its own licensed premises. During the transport of cannabis goods, the distributor shall not deviate from its route or stop except as necessary to comply with the law, attend to a safety issue, or attend to the mechanical and fuel needs of the transport vehicle or because road conditions make continued use of the route unsafe, impossible, or impracticable. In all such cases, cannabis goods shall not be left unattended by the driver.

N. No vehicle shall be used in the transport of cannabis goods unless all transport vehicle information required by Section 5312 of Title 16 of the California Code of Regulations has been supplied to the director.

O. No person under the age of twenty-one years of age shall be in a vehicle or trailer transporting cannabis goods and only a licensee or an employee of the distributor shall be in a vehicle while transporting cannabis goods.

P. The distributor shall maintain shipping manifests pursuant to Section 5314 of Title 16 of the California Code of Regulations. During transport, the shipping manifest shall be with the delivery vehicle. After conclusion of transportation, all shipping manifests shall be stored at the distribution premises for no less than one year after conclusion of transport. The distributor shall permit inspection and copying of all records upon request of the City of Redding.

Q. An applicant may be licensed for a "distributor - transport" only license upon payment of a fee to be established for all other distributors by resolution of the city council. In such cases, a distributor who only transports cannabis shall be solely authorized to engage in the transport of cannabis between licensees of the State of California. A distributor - transport only licensee shall not be authorized to transport cannabis goods to the premises of a retailer, except for when the licensee is transporting only immature plants and seeds from a cultivator to a licensed retailer, both of whom must be licensed by the State of California. In all other respects, a distributor - transport only licensee shall comply with Section 5315 of Title 16 of the California Code of Regulations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. An application for a microbusiness license shall indicate on the application for licensure which commercial cannabis activities the applicant intends to engage in. Microbusinesses having a retail cannabis component shall be licensed in the same manner as retail cannabis businesses. A retail cannabis licensee seeking to be licensed as a microbusiness shall not be required to undergo additional competitive selection pursuant to Section 6.12.400.

B. Licensees operating a microbusiness shall comply with all requirements set forth in this chapter which relate to the commercial cannabis activities authorized by the microbusiness license.

C. A licensee operating a microbusiness shall comply with Sections 5500 through 5507 of Title 16 of the California Code of Regulations.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 8, 3-19-2019; Ord. No. 2605, § 2, 6-4-19)

It is unlawful to operate a cannabis event, as described in Sections 5600 through 5603, inclusive, of Title 16 of the California Code of Regulations, within the City of Redding.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. No person shall manufacture cannabis products unless that person has all applicable valid and unexpired licenses for manufacture issued by the State of California and the City of Redding.

B. In addition to the information required by Section 6.12.080 with regard to an application for a cannabis business license, any person desiring to apply for a license to manufacture cannabis products shall also provide the following in support of the application:

1. A description of the applicant's inventory process;

2. A description of its quality control procedures; and

3. A description of its extraction and/or infusion methods.

C. Manufacture of cannabis products shall not be accomplished by use of volatile substances unless accomplished in accordance with a manufacturer's license issued by the State of California. The prohibitions set forth in Chapter 10.06 of the Redding Municipal Code shall have no application to a manufacturer licensed pursuant under this chapter.

D. Manufacture of cannabis and cannabis products shall occur only in a detached, fully enclosed building.

E. No person shall conduct retail sales of goods on or from a licensed cannabis manufacturing site.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 9, 3-19-2019)

A. No person shall establish or operate a cannabis testing laboratory except as provided in this section.

B. Testing laboratories shall comply with Sections 5700 through 5739, inclusive, of Title 16 of the California Code of Regulations.

C. Pursuant to Section 6.12.300, all testing laboratory-specific records required by operation of Sections 5700 through 5739, inclusive, of Title 16 of the California Code of Records shall be retained for a period of seven years and shall be made immediately available for inspection and copy by the City of Redding upon demand.

D. A testing laboratory licensed by the State of California may operate a satellite location within the City of Redding which has for its sole purpose the testing of cannabis for potency.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

In construing and enforcing the provisions of this chapter and Title 18 of the Redding Municipal Code, the act, omission or failure of an agent, officer, representative or other person acting for or employed by a licensee, within the scope of his or her employment or office, shall in every case be deemed the act, omission or failure of the licensee.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. The director may suspend, modify, further condition or revoke any license issued to a cannabis business issued pursuant to the provisions of this chapter for any of the following reasons:

1. One or more of the circumstances upon which a license could be denied, as described in Section 6.12.110, exists or has occurred.

2. The licensee, or any of its owners, has violated a term or condition of its license issued pursuant to this chapter or a term or condition of a license issued by the State of California.

3. The licensee, or any of its owners, has violated the Redding Municipal Code or the laws of the State of California.

4. The licensee permitted a person or legal entity to acquire a financial interest in the cannabis business as an owner without first undergoing fingerprinting and a DOJ/NCIC background check.

5. The licensee failed to pay a fee, tax, fine, administrative penalty or any amount resulting from a civil judgment when due.

6. The licensee failed to take reasonable steps, as defined in Section 5808 of Title 16 of the California Code of Regulations, to correct objectionable conditions that constitute a nuisance on the licensed premises, including the immediately adjacent area that is owned, leased, or occupied by the licensee, within a reasonable time after receipt of notice to abate the condition.

7. The licensee failed to take reasonable steps, as defined in Section 5808 of Title 16 of the California Code of Regulations, to correct objectionable conditions that constitute a nuisance within a reasonable time which occur during operating hours on any public sidewalk within twenty feet of the licensed premises.

8. The licensee knowingly engaged in the illegal sale, or negotiations for the sale, of controlled substances, as defined in Section 5805 of Title 16 of the California Code of Regulations, upon his or her licensed premises. Successive sale, or negotiations for sale, over any continuous period of time shall be deemed evidence of permission.

9. When required to provide notice to the City of Redding of any term or condition set forth in this chapter, the licensee or any of its owners made a false or misleading representation or omitted notice when it was required.

B. A cannabis business licensee whose license has been suspended shall conspicuously display a notice on the exterior of the licensee's premises for the duration of the suspension, and ensure that the notice remains continuously in place for the time specified. The notice shall be in at least twenty-four point type and provide as follows:

NOTICE OF SUSPENSION THE CANNABIS BUSINESS LICENSE ISSUED FOR THIS PREMISES HAS BEEN SUSPENDED FOR VIOLATION OF THE REDDING MUNICIPAL CODE

C. A licensee whose license has been revoked shall conspicuously display a notice on the exterior of the licensee's premises indicating that the license has been revoked. The notice shall remain continuously on the licensed premises for at least fifteen calendar days. The notice shall be in at least twenty-four point type and provide as follows:

NOTICE OF REVOCATION THE CANNABIS BUSINESS LICENSE ISSUED FOR THIS PREMISES HAS BEEN REVOKED FOR VIOLATION OF THE REDDING MUNICIPAL CODE

D. Action taken by the director with respect to the suspension, modification, or revocation of a cannabis business license shall be final and conclusive. Any licensee aggrieved by the suspension, modification or revocation of a cannabis business license may obtain review of such decision by appeal to the city manager pursuant to Section 6.12.620.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2602, § 10, 3-19-2019)

A. The director may initiate suspension or revocation proceedings or impose additional conditions on a license by sending written notice to the licensee of the disciplinary action and grounds for the action by certified mail return receipt requested, to the licensee's business address, as set forth in the license. The notice shall inform the licensee of its right to appeal the determination of the director by sending written notice of appeal and the grounds for such appeal to the director no later than fourteen days after the date in which the notice of suspension, revocation or intention to impose additional conditions was mailed. Failure to timely appeal shall result in a forfeiture of the right of appeal, and the determination of the director shall be final.

B. Upon receipt of a timely notice of appeal, the director shall transmit said notice of appeal to the city clerk for setting of a hearing. Unless continued for good cause demonstrated, appeals shall be heard by the city manager within thirty calendar days of the date notice of appeal was received by the director.

C. After considering all of the testimony and evidence submitted at said hearing, the city manager shall decide the appeal based upon a preponderance of the evidence and issue written findings of fact no later than ten days after the hearing. Hearings before the city manager shall not be bound by formal rules of evidence. Hearsay evidence may be received; however, in no event shall a decision be based solely on hearsay evidence. The city manager may deny, uphold, or modify the discipline imposed by the director. The findings and decision of the city manager shall be final and conclusive and not appealable to the city council.

D. Any licensee aggrieved by the order of the city manager may obtain review of the order within ninety days of notice by filing with the Shasta County Superior Court a petition for review pursuant to California Code of Civil Procedure section 1094.5. For purposes of this section, notice shall be the date that the decision of the city manager is deposited in the United States mail.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. The director may eliminate, modify or add to any condition imposed on a cannabis business license when he or she deems such action reasonably necessary to protect the health, safety or welfare of the public or to otherwise secure compliance with the requirements set forth in the Redding Municipal Code. The action taken on the license and the grounds for such action shall be made in writing and sent by certified mail return receipt requested to the licensee's business address, as set forth in the license.

B. The action by the director taken pursuant to this section may be made in conjunction with disciplinary action, in lieu of disciplinary action, or independent of disciplinary action.

C. Any person aggrieved by the action of the director may appeal the decision of the director pursuant to the procedures set forth in Section 6.12.620 relating to suspension and revocation of a license.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)

A. The procedures set forth in this chapter shall be cumulative and in addition to any other procedure or legal remedy provided for in the Redding Municipal Code or the laws of the State of California. Nothing in this chapter shall be deemed to prevent the City of Redding from commencing alternative administrative, civil or criminal proceedings.

B. The city attorney is authorized to institute administrative action pursuant to Chapters 1.13 through 1.15 of the Redding Municipal Code and to institute civil or criminal action in the Shasta County Superior Court in order to enforce the provisions of this chapter and those provisions set forth in Title 18 of the Redding Municipal Code relating to land use for cannabis businesses. Subject to California Government Code Section 53069.4, such administrative enforcement action may include the immediate imposition of administrative fines or penalties issued pursuant to Chapter 1.13 of the Redding Municipal Code. A property owner shall have a reasonable period of time for the correction or remedy of the violation prior to the imposition of administrative fines or penalties if all of the following are true:

1. A tenant is in possession of the property that is the subject of the administrative action.

2. The rental property owner or agent can provide evidence that the rental or lease agreement prohibits the cultivation of cannabis.

3. The rental property owner or agent did not know the tenant was illegally cultivating cannabis and no complaint, property inspection, or other information caused the rental property owner or agent to have actual notice of the illegal cannabis cultivation. Property owners who received written notice of violations of this chapter are presumed to have actual notice and knowledge of future violations for a period of one year after the date of the written notice. Such presumption shall be rebuttable.

C. This chapter is cumulative to all other remedies now or hereafter available to abate or otherwise regulate, enforce or prevent public nuisances or to enforce the provisions of the Redding Municipal Code. Any violation of this chapter may be subject to injunctive relief, revocation of any license issued by the City of Redding, disgorgement and payment to the City of Redding of any and all money unlawfully obtained, costs of abatement, investigation and attorney fees or any other relief or remedy available at law or equity.

D. A violation of any section within this chapter is a public nuisance.

(Ord. No. 2584, §§ 3, 4, 3-20-2018; Ord. No. 2628, § 2, 9-15-2020)

All cannabis business licensees, owners, and/or responsible parties, as defined in Section 1.14.020, shall be jointly and severally liable for violation of any provision set forth in this chapter.

(Ord. No. 2584, §§ 3, 4, 3-20-2018)