Redwood City Municipal Code § 32.172 Inspection and Enforcement

It is the purpose and intent of this Division to provide for the health, safety, and welfare of the residents of the City by establishing regulations governing commercial indoor cannabis nurseries and the commercial sale of cannabis and cannabis products, whether for medicinal or adult use, in the City of Redwood City. To meet these objectives, an annual cannabis business permit is required in order to operate an indoor nursery, delivery center, or storefront retail in the City, and registration with the Police Department is required in order for a cannabis retailer located outside the City to deliver to a customer located inside the City. The provisions of this Division are in addition to any other permits, licenses, and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses, and approval required under state, county, or other law.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2490, § 4, 11-9-20)

For the purposes of this Division, the following words and phrases shall have the meaning respectively ascribed thereto.

A. "Applicant" means the person applying for a cannabis business permit, including an owner, managing partner, officer of a corporation, or any other management member of the entity seeking the cannabis business permit.

B. "Cannabis" means any or all parts of the plant cannabis sativa linnaeus, cannabis indica, or cannabis ruderalis, whether growing or not, the seeds thereof, the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis" does not include industrial hemp, as defined in Health and Safety Section 11018.5.

C. "Cannabis business" means a nursery, delivery center, or storefront retail, as those terms are defined herein.

D. "Cannabis business permit" means the regulatory permit issued by the City pursuant to this Division to a commercial cannabis business, which is required before an indoor nursery, delivery center, or storefront retail may be operated in the City.

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

F. "City Manager regulations" means any administrative rules, regulations and procedures promulgated by the City Manager to implement the requirements and fulfill the policies of this Division.

G. "City working day" means a day when City Hall is open.

H. "Commercial cannabis activity" means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products for commercial purposes, whether for profit or nonprofit, and for which a state license is required under Business and Professions Code Sections 26000 and following.

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

J. "Delivery" shall have the same meaning set forth in Business and Professions Code Section 26001(p), and includes the commercial transfer or the use of any technology platform to arrange for or facilitate the commercial transfer of cannabis and/or cannabis product by a retailer to a person.

K. "Delivery center" or "non-storefront retail" means a retail business or operation, whether for profit or nonprofit, whose premises are closed to the public and which sells cannabis and/or cannabis products exclusively by delivery, for which a state license (Type 9—Non-storefront Retailer) is required under Business and Professions Code Sections 26000 and following.

L. "Delivery driver" means an employee working directly for a retailer who has applied for and received approval from the Chief of Police, or his or her designee, to drive a delivery vehicle.

M. "Electronic age verification device" means a device capable of quickly and reliably confirming the age of the cardholder of a government issued identification card using computer processes.

N. "Employee" means each person who renders any service, with or without compensation, for the owner, permittee, or agent of either an owner or permittee of a cannabis business. For purposes of this Division, the term employee shall include part-time, full-time, temporary, or permanent employees.

O. "Fully enclosed and secure structure" means a code-compliant space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, and which is accessible only through one (1) or more locking doors.

P. "Indoor" means within a fully enclosed and secure structure as defined herein.

Q. "Manager" means any person(s) designated by the commercial cannabis business to act as the representative or agent of the commercial cannabis business in managing day-to-day operations, and/or the individual in apparent charge of the premises where the commercial cannabis business is located. Evidence of management includes, but is not limited to, evidence that the individual has the power to direct, supervise, or hire and dismiss employees, controls hours of operations, create and/or enforce policy rules, or purchase supplies.

R. "Nursery" means a business or operation, whether for profit or nonprofit, that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis and for which a state license (Type 4 — Nursery) is required under Business and Professions Code Sections 26000 and following. A nursery producing seed for distribution may contain mature plants, but all products, except seed, derived from these plants are prohibited from entering the commercial distribution chain. A nursery may maintain a research and development area for the cultivation of mature plants, but all products derived from these plants are prohibited from entering the commercial distribution chain.

S. "Owner" means any of the following:

1. A person, entity or individual with an aggregate ownership interest of ten (10) percent or more in the person applying for a cannabis business permit, whether a partner, shareholder, member, or the like, unless the interest is solely a security, lien, or encumbrance.

2. The chief executive officer of a nonprofit or other entity.

3. A member of the board of directors of a nonprofit.

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

T. "Permittee" means any person to whom a current and valid cannabis business permit and use permit (if applicable) have been issued.

U. "Person" means any person, firm, association, organization, partnership, entity, business trust, corporation, company, or limited liability company.

V. "Premises" means the designated structure or structures and land specified in the cannabis business permit application that is owned, leased, or otherwise held under the control of the permittee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one (1) permittee.

W. "Retailer" means any business or operation, whether for profit or nonprofit, which engages in the sale and delivery of cannabis and/or cannabis products to a customer and for which a state license is required under Business and Professions Code Sections 26000 and following. A retailer shall include a cannabis microbusiness, as defined by Business and Professions Code Section 26070(a)(3)(A).

X. "Secure container" means an enclosed container affixed to a vehicle, the contents of which are not visible from the outside of the vehicle, which is made of sufficient materials and design so as to prevent entry without key or combination, and cannot be easily removed from the vehicle.

Y. "State cannabis laws" means and includes California Health and Safety Code Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program); California Business and Professions Code Sections 26000, et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA")); Proposition 64, the Adult Use of Marijuana Act; all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted pursuant to MAUCRSA; any license issued pursuant to MAUCRSA; and all other applicable laws of the State of California regulating cannabis or cannabis products.

Z. "Storefront retail" or "storefront retailer" means a business or operation, whether for profit or nonprofit, which sells cannabis and/or cannabis products to customers from a licensed premise that is open to the public, for which a state license (Type 10—Storefront Retailer) is required under Business and Professions Code Sections 26000 and following. In addition to conducting sales at its premises, a storefront retailer may also conduct sales through delivery.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18; Ord. No. 2490, § 5, 11-9-20)

A. No person shall engage in, conduct, carry on, or operate, or permit any other person to engage in, conduct, carry on, or operate, storefront retail, a delivery center or indoor nursery unless all of the following requirements are met:

1. That person has first obtained and continues to maintain in full force and effect a business license issued pursuant to this Article and a cannabis business permit issued pursuant to this Division, and has paid all required taxes and fees.

2. That person is in compliance with Section 59.4 of Article 59 of the Zoning Ordinance.

3. That person has obtained and continues to maintain in full force and effect the required state license or licenses for the commercial cannabis activity in which he or she is engaged.

4. The storefront retail, delivery center or indoor nursery is operated in strict compliance with the cannabis business permit issued pursuant to this Division.

5. The storefront retail, delivery center or indoor nursery is operated in strict compliance with all applicable state cannabis laws and regulations.

B. No delivery center shall sell cannabis and/or cannabis products from more than one (1) location in the City.

C. No retailer located outside the City shall deliver cannabis and/or cannabis products to a customer located inside the City unless all the following requirements are met:

1. That retailer has first obtained and continues to maintain in full force and effect a business license issued pursuant to this Article, and has paid all required taxes.

2. That retailer has registered with the Police Department using forms approved by the Chief of Police and provided to the Department a copy of its state license and local approval permitting it to engage in commercial cannabis activities.

3. That retailer has obtained and continues to maintain in full force and effect the required state license or licenses for the commercial cannabis activity in which he or she is engaged.

4. The retailer meets all the requirements in Section 32.169(A) pertaining to deliveries of cannabis and cannabis products.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18; Ord. No. 2490, § 6, 11-9-20)

A. The City Manager is authorized and directed to promulgate any necessary administrative rules, regulations and procedures necessary to implement the requirements and fulfill the policies of this Division, including but not limited to:

1. Any necessary forms;

2. Regulations concerning applications for a cannabis business permit and the application process;

3. Regulations implementing this Division's requirements and policies promoting the safe cultivation and sale of cannabis in the City.

B. Any rules, regulations, and procedures promulgated by the City Manager shall be published on the City's website, shall be effective upon the date of publication, and shall have the same force and effect of law.

(Ord. No. 2444, § 2, 5-7-18)

A. Any person seeking to obtain a cannabis business permit shall submit a written application to the City, signed under penalty of perjury, using the form approved by the City Manager for that purpose. The application shall be accompanied by a non-refundable application fee and, if applicable, delivery plan review fee established by resolution of the City Council, to defray the costs incurred by the City in the application process set forth in this Division. The City Manager shall adopt administrative regulations establishing the required materials for an application submittal.

B. Delivery Centers and Indoor Nurseries. Cannabis business permits for delivery centers and indoor nurseries shall be approved where the City Manager or his or her designee confirms that the following criteria have been met:

1. The application is complete and provides all necessary and requested information.

2. The applicant and each owner of the cannabis business have authorized and completed fingerprinting and have authorized the use of their fingerprinting results to run a State and federal criminal background check.

3. The results of the criminal background checks establish that the applicant and each owner have not been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business. The following offenses are substantially related to the qualifications, functions, or duties of a cannabis business:

a. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code.

b. A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code.

c. A felony conviction involving fraud, deceit, or embezzlement.

d. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.

e. A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.

f. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a cannabis business permit or denial of a cannabis business permit renewal.

g. Conviction for cultivation or production of a controlled substance on public or private lands pursuant to Section 12025 or 12025.1 of the Fish and Game Code.

h. Conviction for unauthorized, unpermitted, or unlawful cannabis activities in any city, county or city and county in the five (5) years immediately preceding the issuance of a cannabis business permit or cannabis business permit renewal.

4. The applicant and each owner have not been convicted, cited, fined, or penalized by the State or any city, county, or city and county, or enjoined by any court of law, in the five (5) years immediately preceding the application for a cannabis business permit or cannabis business permit renewal, for any unauthorized, unpermitted, or unlawful cannabis activities.

5. The applicant and each owner have not been convicted, cited, fined, or penalized by the State or any city, county, or city and county, or enjoined by any court of law, in the five (5) years immediately preceding the application for a cannabis business permit or cannabis business permit renewal, for cultivation or production of a controlled substance on public or private lands.

6. Security Plan. The applicant has provided a Security Plan that meets the minimum standards set forth in these regulations and any applicable City Manager regulations.

C. Storefront Retail. The City Manager or his or her designee shall approve up to six (6) cannabis business permits for storefront retail in accordance with the process below.

1. The City Manager shall promulgate the procedures to govern the application process and the manner in which the decision will ultimately be made regarding the issuance of any cannabis business permit for storefront retail, which shall require the City Manager to provide detailed review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to each set of review criteria.

2. The City Manager shall establish review criteria to rank applications, which shall include, but not be limited to, the following:

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

b. Employee training and standard operating procedures.

c. Security program.

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

3. The City Manager or his or her designee(s) shall conduct an initial review, scoring, and ranking of complete applications using one (1) or more of the review criteria. Subsequently, a selection committee appointed by the City Manager shall interview the top applicants based on points and determine a final ranking by reviewing, scoring and ranking the applications, based on the written application and the interview and using one (1) or more of the review criteria. The specific review criteria and weighting (points per criteria) for each phase of the application process will be determined prior to the commencement of the initial application period and posted publicly. Each application will be independently scored by the selection committee members.

4. The selection committee shall provide its final ranking and recommendation to the City Manager or his or her designee, who will decide which applicants will receive a cannabis business permit for storefront retail.

5. The City reserves the right to deny any and all applications for a cannabis business permit for storefront retail. The City further reserves the right to award less than six (6) cannabis business permits for storefront retail, or to award no permits at all.

6. The applicant shall be required to meet all of the following prior to receiving the cannabis business permit:

a. Procure and provide evidence of insurance which provides the coverage that the City's Risk Manager determines to be necessary and adequate under the circumstances. The City's Risk Manager may require the applicant to provide commercial general liability, property damage, and automobile insurance, as well as evidence of worker's compensation insurance, with endorsements as may be appropriate.

b. Execute an agreement, in a form approved by the City Attorney, whereby the applicant:

i. Releases the City, its boards and commissions, officers, officials, employees, and agents from any and all claims, injuries, damages, or liabilities of any kind arising from: (1) any repeal or amendment of this Division or any provision of the Zoning Ordinance relating to commercial cannabis activity; or (2) any arrest or prosecution of applicant or its officers, managers, employees or agents for violation of state or federal laws.

ii. Indemnifies, defends, and holds harmless to the fullest extent permitted by law the City, its boards and commissions, officers, officials, employees and agents from and against any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney's fees), suits or other expenses which arise out of, or which are in any way related to, the City's issuance of a cannabis business permit, the process used by the City in making its decision, or the applicant's operations, except such liability caused by the sole negligence or willful misconduct of the City.

D. A cannabis business permit shall not be issued or renewed where the City Manager or his or her designee confirms that one (1) or more of the criterion set forth in Section 32.161(B) have not been met. A cannabis business permit also shall not be issued or renewed where the City Manager or his or her designee determines that the application contains a material falsehood or misrepresentation and/or omission of information required by these regulations, any applicable City Manager regulations, and/or the approved application form. If the City Manager or his or her designee denies the cannabis business permit or cannabis business permit renewal, he or she shall specify in writing the reasons for the denial of the application or application for renewal, and the decision shall become final unless the applicant seeks an appeal pursuant to Section 32.164.

E. Each cannabis business permit issued pursuant to this Division shall expire twelve (12) months after the date that the City Manager, or his or her designee, mails the approved cannabis business permit to the mailing address provided by the business. Where a use permit is required to operate the cannabis business, the date of issuance for a cannabis business permit shall be the date on which a use permit is issued pursuant to Article 42 of the Zoning Code.

F. A cannabis business permit issued under this Division is valid only as to the permittee and approved premises, and is therefore nontransferable to other persons or locations unless such transfer is approved in writing by the City Manager or his or her designee pursuant to applicable City Manager regulations. No cannabis business permit may be sold, transferred or assigned by a permittee, or by operation of law, to any other person or entity without the City Manager's or his or her designee's written approval. Any sale, transfer, or assignment, or attempted sale, transfer, or assignment without such approval shall be deemed to constitute a voluntary surrender of such cannabis business permit and such permit shall thereafter be null and void.

G. To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a cannabis business permit pursuant to this Division or otherwise approving the operation of any cannabis business.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18; Ord. No. 2490, § 7, 11-9-20)

A. Cannabis business permits must be renewed on an annual basis prior to expiration by filing the cannabis business permit renewal application form approved by the City Manager and a renewal fee in an amount set forth by separate resolution of the City Council, which amount is calculated to recover the City's full cost of reviewing, issuing and administering said application.

B. The application for renewal and the renewal fee shall be filed at least thirty (30) days, but not more than sixty (60) days, prior to the expiration of the cannabis business permit. If a timely renewal application is filed, the cannabis business permit shall not expire until the cannabis business permit application for renewal is approved or denied.

C. An application for renewal shall be subject to all filing requirements set forth in Section 32.161 and any applicable City Manager regulations.

(Ord. No. 2444, § 2, 5-7-18)

A. A cannabis business permit issued under this Division shall be suspended or revoked by the City Manager if he or she concludes any of the following:

1. The cannabis business has violated any of the requirements of the Municipal Code including the operating conditions set forth in this Division or any applicable City Manager regulations.

2. The cannabis business is being operated in a manner that constitutes a public nuisance, as defined in the Municipal Code or Sections 3479 and 3480 of the California Civil Code, on or within three hundred (300) feet of the premises.

3. The permittee has ceased to operate for thirty (30) consecutive days or more.

4. The permittee, and/or an owner, manager, and/or employee of the permittee, has been convicted of an offense that is listed in Section 32.161(B)(3).

5. The permittee has been convicted, cited, fined, or penalized by the State or any city, county, or city and county, or enjoined by any court of law for any unauthorized, unpermitted, or unlawful cannabis activities.

6. The permittee has been convicted, cited, fined, or penalized by the State or any city, county, or city and county, or enjoined by any court of law for cultivation or production of a controlled substance on public or private lands.

7. The cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.

8. The permittee's cannabis use permit issued pursuant to Article 42 of the Zoning Code has been terminated or revoked.

9. The permittee's state license has been suspended, terminated, or revoked.

10. The City Manager determines that the permittee's application contained a material falsehood or misrepresentation and/or omission of information required by these regulations, any applicable City Manager regulations, and/or the approved application form.

B. Effective revocation. Any cannabis business permit revoked pursuant to this subsection shall be deemed to be expired and shall no longer entitle the permittee to any privileges authorized by the cannabis business permit.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18; Ord. No. 2490, § 8, 11-9-20)

A. Appeal from decision regarding a cannabis business permit.

1. Any aggrieved person may appeal a decision by the City Manager or his or her designee to deny, suspend, or revoke a cannabis business permit. All such appeals shall be to the Hearing Officer, except as provided in subsection (B).

2. An appeal under this Division shall be made in writing on forms approved by the City Manager and shall state the grounds for the appeal.

3. An appeal shall be submitted to the City Clerk within ten (10) City working days of the decision that is being appealed, along with any accompanying appeal fee.

4. Upon receiving a written appeal, the Hearing Officer shall schedule the appeal hearing. The appeal shall be heard within twenty (20) City working days of the City Clerk's receipt of the written appeal. The Hearing Officer shall provide notice of the appeal date and time at least ten (10) City working days before the hearing.

5. After the hearing, the Hearing Officer shall render a written decision. The Hearing Officer may reverse, affirm, or modify in any respect the determination of the City Manager or his or her designee. The Hearing Officer shall mail the written decision to the appellant within twenty (20) City working days of the date of the hearing. The Hearing Officer's decision is final and is not subject to further administrative review.

a. If the person is appealing a denial, suspension, or revocation of a cannabis business permit based on a conviction, the Hearing Officer shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation and may overturn the City Manager's decision if he or she determines that the person is otherwise suitable to be issued a cannabis business permit and issuing the cannabis business permit would not compromise public safety.

B. Where a use permit is required to operate the cannabis business, an appeal from a decision to suspend or revoke a cannabis business permit shall follow the procedures set forth in Article 41 of the Zoning Code.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18; Ord. No. 2490, § 9, 11-9-20)

A. A cannabis business shall at all times comply with state cannabis laws, the Municipal Code, any applicable use permit, and applicable City Manager regulations. All occupancies, construction and equipment used therein, shall meet all applicable state and local laws, including all applicable building, electrical fire, and water codes and regulations.

B. The premises shall be equipped with, and at all times be monitored by, a web-based, closed-circuit television for security purposes.

C. The premises shall have separate fire and burglar alarm systems.

D. Exterior lighting on the premises and parking area lighting for the location shall be balanced and shall not result in glare on adjoining properties, shall complement the security systems required in Subsections (B) and (C) to ensure that all areas of the premises and parking area are visible, and shall provide increased lighting at all entrances to the premises. The lighting required in this Subsection shall be turned on from dusk to dawn.

E. Cannabis and cannabis product shall be stored in buildings that are completely enclosed, and in a locked vault or safe or other secured storage structure which is bolted to the floor or structure of the premises.

F. Windows and roof hatches of the premises shall be secured from the inside with effective means so as to prevent unauthorized entry, and shall be equipped with latches or a similar mechanism that may be released quickly from the inside to allow exit in the event of emergency in compliance with all applicable building code provisions.

G. Exterior doors to the premises shall remain locked from the inside to prevent unauthorized ingress to the premises. Ingress shall be allowed by means of a remote release operated from within the premises of the cannabis business. In all cases, doors shall remain openable from the inside to allow egress without the use of a key or special knowledge.

H. No person shall be in possession of any firearm while on the premises without having first obtained a license from the appropriate state or local agency authorizing the person to be in possession of such firearm.

I. Persons in possession of a firearm while on the premises must provide the City Manager and the Chief of Police, or their designees, ten (10) days before bringing the firearm onto the premises or location, with the following:

1. A copy of the license issued to the person by the appropriate state or local agency authorizing him or her to possess such firearm;

2. A copy of his or her law enforcement identification (if he or she is employed by a law enforcement agency);

3. A copy of his or her California driver's license or California identification card; and

4. Any other information reasonably required by the Chief of Police, or his or her designee, to show that the individual is in compliance with the provisions of all laws regarding the possession and use of a firearm.

J. A delivery center must employ security personnel in accordance with state law.

K. The owner and/or manager of a cannabis business shall keep the premises in a clean and safe condition.

L. The owner, manager and/or operator of a cannabis business shall not conduct the operations of the cannabis business in a manner that creates or results in a public nuisance on the premises or within three hundred (300) feet of the premises, including but not limited to:

1. Disturbance of the peace;

2. Illegal drug activity;

3. Public drunkenness;

4. Drinking in public;

5. Gambling;

6. Prostitution;

7. Sale of stolen goods;

8. Public urinations;

9. Theft;

10. Assaults;

11. Batteries; or

12. Acts of vandalism.

M. The cannabis business shall maintain a log of any public nuisance activity on the premises or within three hundred (300) feet of the premises. The log shall include any information required by the Chief of Police, or his or her designee, including but not limited to the date and time of the occurrence; the type of activity; the circumstances surrounding the activity; the identity of any persons involved in the activity if known; the corrective action taken by the cannabis business; and the police case number if applicable.

N. Each cannabis business shall operate in a manner such that the cultivation, processing, and/or storage of cannabis does not adversely affect the health or safety of nearby properties through creation of mold, mildew, dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts.

O. Odor Control. Each cannabis business shall utilize appropriate air purification systems and air scrubbers wherever cannabis is stored, cultivated, processed, or sold so as to prevent the odor of cannabis from emanating beyond the walls of the premises.

P. Product Storage. All cannabis and cannabis products sold by a cannabis business must be stored and sold in strict accordance with state cannabis laws, this Division, and all other applicable regulations.

Q. All sales and transfers of cannabis and cannabis products by a cannabis business shall be fully documented, by an approved point of sale software, authorized by the Chief of Police or their designee, at the time of the sale or transfer. All such records shall be maintained for a minimum of seven (7) years, pursuant to Title 16, Section 5037 of the California Code of Regulations.

R. Each cannabis business shall account for all monetary contributions or payments. Monetary contributions or payments shall be made by cash, personal check, cashier's check or credit card. All accountings, billings, and contributions (whether in-kind, monetary or property) shall be fully documented, in writing and in accordance with this Division, and shall be submitted to the Director of Finance on a quarterly basis.

S. Neither a delivery center or storefront retailer permitted under this Division nor a state-licensed cannabis retailer located outside Redwood City may sell cannabis or cannabis products to a person under the age of twenty-one (21), unless the delivery center, storefront retailer or state-licensed cannabis retailer is authorized to sell medicinal cannabis or medicinal cannabis products and the customer is at least eighteen (18) years of age and has a valid physician's cannabis recommendation or valid state identification card.

T. Prior to selling or transferring cannabis or cannabis product to any person, an electronic age verification device shall be used to determine the age of the person attempting to obtain cannabis or cannabis products. The electronic age verification device may be mobile or fixed, and must be able to retain a log of all scans that includes the following information: date, time and age. This log shall be kept for a minimum of one hundred eighty (180) days.

U. No cannabis business shall cause or permit the sale or consumption of alcoholic beverages or tobacco products at the premises or in the parking area for the premises.

V. Cannabis and cannabis products may not be inhaled, smoked, eaten, ingested, vaped, or otherwise used or consumed at the premises, in the parking areas of the premises, within three hundred (300) feet of the premises on the public right-of-way, or in those areas restricted under the provisions of California Health and Safety Code Section 11362.79.

W. Each cannabis business shall operate and maintain an on-site twenty-four-hour landline telephone number at the premises for receiving complaints and other inquiries regarding the cannabis business. A person engaged in the management of the cannabis business shall be responsible for receiving, logging, and responding to these complaints and other inquires on a daily basis. The log shall be maintained in the records of the cannabis business and in accordance with this Division.

X. None of the following items shall be allowed on the premises or in the parking area for the premises:

1. Any controlled substances, other than cannabis and cannabis products as defined herein;

2. Any paraphernalia used for the ingestion of any type of controlled substance, except for cannabis and cannabis products;

3. Alcoholic beverages; or

4. Firearms, except in strict compliance with federal, state and local laws.

Y. A sign shall be posted in a conspicuous location inside the premises advising, in English and Spanish, the following: "Both the sales of cannabis and the diversion of cannabis to persons under age twenty-one (21) are violations of state law unless that person is at least eighteen (18) years of age and has a valid physician's cannabis recommendation. The use of cannabis may impair a person's ability to operate a motor vehicle or heavy machinery. Loitering at the location of a cannabis business for an illegal purpose is prohibited by California Penal Code Section 647(h). This cannabis business is registered in accordance with the laws of the City of Redwood City."

Z. All cannabis waste shall be properly disposed. Cannabis waste includes: cannabis plants; flowers; trim; leaves; stems; seeds; any cannabis concentrates; and any product containing cannabis intended to be destroyed. All cannabis waste shall be rendered unusable and unrecognizable through mixing the waste with a non-consumable medium, including but not limited to one (1) or more of those listed below, so that the resulting mixture is at least fifty (50) percent non-cannabis waste. The resulting mixture may then be composted onsite, placed in a premises' wet bin for pickup, or transferred to a waste disposal facility approved by the Chief of Police, or his or her designee. The following inert mediums may be used in the mixture: paper waste; plastic waste; cardboard waste; food waste; grease or other compostable oil waste; bokashi or other compost activators; soil; and other medium approved by the City that will render the cannabis waste unusable and unrecognizable.

AA. A delivery center or storefront retailer may transfer cannabis or cannabis products to another retailer located within the State of California provided said retailer is registered, licensed, or otherwise lawfully operating pursuant to state law and the law in the relevant local jurisdiction. A delivery center or storefront retailer may also receive transfers of cannabis or cannabis product from another retailer located within the State of California provided said retailer is registered, licensed, or otherwise lawfully operating pursuant to state law and the law in the relevant local jurisdiction. Transfers made pursuant to this Section shall be subject to all restrictions and requirements regarding the transportation of cannabis into the City of Redwood City, must comply with all other provisions of this Division and state cannabis laws, including the requirement to transport product via a licensed distributor of cannabis, and must comply with all other City Manager regulations. Transfers made pursuant to this Section shall be subject to all taxes imposed by state and local law.

BB. Security Liaison. The cannabis business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the City Manager or his or her designee regarding any security related measures or and operational issues.

CC. Accounting and Track-and-Trace Software. The cannabis business shall have an accounting software system in place to provide point of sale data as well as audit trails for both product and cash, where applicable. In addition, the cannabis business shall have a track-and-trace system in place capable of tracking product movement in compliance with state standards, including compatibility of the software with METRC, the state track-and-trace system.

DD. Storefront Retailer Operating Requirements. In addition to above applicable General Operating Requirements, storefront retailers operating under a cannabis business permit issued by the City shall comply with the following requirements:

1. Access to Premises.

a. Access to the premises of a storefront retailer shall be limited to individuals who are at least twenty-one (21) years of age.

b. Notwithstanding subsection DD(1)(a) above, individuals who are at least eighteen (18) years of age and in possession of a valid physician's recommendation shall be granted access to the premises of a storefront retailer for the sole purpose of purchasing cannabis for medicinal purposes consistent with the physician's recommendation.

2. Limited Access Areas. A storefront retailer shall establish limited access areas and permit only authorized individuals to enter the limited access areas. Authorized individuals include individuals employed by the storefront retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least twenty-one (21) years of age, and if not employed by the storefront retailer, shall be escorted at all times by an employee of the storefront retailer. A storefront retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the Chief of Police, or his or her designee, upon request.

3. Restrooms. Restroom facilities on the premises, if they are made available to customers, shall remain locked and under the control of management.

4. Conduct of Retail Activity. Storefront retailers authorized to conduct retail activities shall only serve customers who are within the licensed premises, or if deliveries are part of the retailer's business model, at a delivery address that meets the requirements of this Division.

a. The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.

b. Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.

c. No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.

d. Storefront retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.

e. A storefront retailer shall hire or contract for security personnel who are at least twenty-one (21) years of age to provide security services for the licensed premises. All security personnel hired or contracted for by the storefront retailer shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. Any armed security personnel must:

i. Have their firearm certification issued by the California Department of Consumer Affairs/Bureau of Security & Investigative Services available for inspection at all times;

ii. Wear a uniform bearing the term "SECURITY" on the front and back of the outermost garments;

iii. Keep their weapon holstered and visible at all times; and

iv. Be subject to a written policy adopted by the storefront retailer that addresses reporting requirements for discharges of weapons and preservation of life when a person is injured as a result of firearm use or discharge.

5. Secure Transport of Cash. Storefront retailers shall contract with a licensed armored car company to facilitate the secure movement of cash off-site to a financial institution or other secure location or another approved process authorized by the Chief of Police or his or her designee.

6. Cannabis Deliveries. If the storefront retailer includes within its business model deliveries to individual customers, the requirements of Section 32.169 shall be binding upon the storefront retailer.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18; Ord. No. 2490, § 10, 11-9-20)

A. While at the cannabis business' premises, each owner, manager, and employee shall, at all times while engaged in the duties of his or her positions for the cannabis business, wear in plain sight, on his or her person and at chest level, a valid identification badge, issued by the Chief of Police, or his or her designee, and containing such information, including a suitable photograph, as the Chief of Police, or his or her designee, may require.

B. While engaged in the duties of his or her position for the cannabis business, but not at the cannabis business' premises, each owner, manager, and employee shall at all times have in his or her possession a valid identification badge, issued by the Chief of Police, or his or her designee, and containing such information, including a suitable photograph, as the Chief of Police, or his or her designee, may require, and upon request by the Chief of Police, or his or her designee, or any other City official charged with enforcing the provisions of these regulations, or any state official charged with enforcing state law pertaining to commercial cannabis activity, produce such valid identification badge for inspection.

C. No owner, manager, or employee shall engage in any activities on behalf of the cannabis business without first obtaining a valid identification badge.

D. Identification badges shall expire one (1) year after issuance.

E. Identification badges are the property of the City of Redwood City and shall be immediately collected by the cannabis businesses within twenty-four (24) hours of their expirations or within twenty-four (24) hours of the termination of the cannabis business' relationship with the owner, manager, or employee.

F. Identification badges collected by the cannabis business pursuant to Subsection E above shall be provided to the Chief of Police, or his or her designee, within seventy-two (72) hours of their expirations or the termination of the cannabis business' relationship with the owner, manager, or employee.

G. Identification badges shall remain at the cannabis business' premises when not in use. Owners, managers, and employees shall not take identification badges home or off-premises, except in the case of traveling off-premises on official business of the cannabis business, including delivery of cannabis or cannabis products.

H. Lost or unreturned badges will be subject to a replacement id card fee established by resolution of the City Council.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18)

A. No owner, manager, or employee of a cannabis business shall:

1. Be on parole or probation for the possession, sale, distribution or transportation of a controlled substance other than cannabis or cannabis product;

2. Have been convicted of a crime listed in Section 32.161(B)(3); or

3. Be under the age of twenty-one (21).

B. No manager of a cannabis business shall:

1. Have been convicted, cited, fined, or penalized by the State or any city, county, or city and county, or enjoined by any court of law, in the five (5) years immediately preceding the issuance of the cannabis business permit or the manager's date of hire by the cannabis business, whichever is later, for any unauthorized, unpermitted, or unlawful cannabis activities; or

2. Have been convicted, cited, fined, or penalized by the State or any city, county, or city and county, or enjoined by any court of law, in the five (5) years immediately preceding the issuance of the cannabis business permit or the manager's date of hire by the cannabis business, whichever is later, for cultivation or production of a controlled substance on public or private lands.

C. A cannabis business shall ban, prohibit, or otherwise refuse entry to any person violating the provisions of this Division. The cannabis business shall maintain a log of persons banned, prohibited, or otherwise refused entry for violating the provisions of this Division. The log shall include any information required by the Chief of Police, or his or her designee, including but not limited to the name (if available), brief description (if name is not available), date and time of the incident(s), section(s) of this Division violated, and the date the person was banned, prohibited, or otherwise refused entry.

D. Each cannabis business shall designate an on-site representative who shall be present during all hours of the cannabis business' operations.

E. No owner, manager, or employee of a cannabis business shall fail to make a report to the Chief of Police, or his or her designee, immediately upon discovery of any conduct which raises a reasonable suspicion that a misdemeanor or felony crime under the laws of the state has been committed on the premises.

F. No owner, manager, or employee of a cannabis business shall fail to report any conduct which raises a reasonable suspicion of a violation of this Division to the Chief of Police, or his or her designee, within twenty-four (24) hours of its discovery.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18)

A. All cannabis and cannabis products shall be packaged in an opaque, tamper-evident, child-resistant package which is required to maintain the child-resistant properties appropriate with the intended number of uses of the product. All cannabis packaging shall be in accordance with Section 26120 of the Business and Professions Code and any other applicable state law or regulation. For the purposes of child resistant packaging, a product containing ten (10) milligrams or less of THC is considered a single use product. For the purposes of child resistant packaging, a product containing more than ten (10) milligrams of THC is considered a multiple use product.

B. Single use products can be dispensed in a package that is child-resistant for one (1) use. As an alternative, single use product may be dispensed in a package that is child-resistant across multiple uses.

C. Multiple use products must be dispensed in a container that is child-resistant across multiple uses. Multiple use products shall not be dispensed in a package that is child-resistant for one (1) use.

D. Opaque package shall mean packaging that is constructed or coated in such a manner as to ensure the contents inside are shielded from view.

(Ord. No. 2444, § 2, 5-7-18)

A. General Provisions.

1. It shall be unlawful for any person other than a delivery driver for a delivery center or storefront retailer with a current and valid cannabis business permit to conduct a delivery originating in Redwood City.

2. A retailer located outside the City may deliver to a customer located inside the City so long as the retailer meets all of the requirements of Section 32.159(C) and this Subsection.

3. Prior to delivering cannabis or cannabis products, and at any time during normal business hours, each delivery vehicle must pass an inspection and be approved by the Chief of Police, or his or her designee.

4. Orders for delivery shall be made to the retailer and cannot be made directly to the driver of the delivery vehicle.

5. The cannabis and/or cannabis product transferred through delivery is subject to all other applicable restrictions and requirements of state cannabis laws and the Municipal Code, including being subject to all applicable state and local taxes.

6. No cannabis or cannabis product shall be visible from outside of the delivery vehicle.

7. Deliveries shall only be made to customers between 8:00 a.m. and 10:00 p.m.

8. No cannabis or cannabis products shall be delivered to a person who is under twenty-one (21) years of age unless medicinal cannabis is being delivered to a person who is at least eighteen (18) years of age and has a valid physician's cannabis recommendation.

9. Prior to transfer of medicinal cannabis or medicinal cannabis products, the retailer shall verify the receiving individual's identity and the doctor's recommendation for medicinal cannabis and/or medicinal cannabis product.

10. Prior to transfer of cannabis or cannabis product to the customer, all cannabis orders shall meet all packaging and labeling requirements required by local and state law.

11. Deliveries of cannabis or cannabis products within the City may only be made to a physical address.

12. Any kiosk, i-Pad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, other than a retail location permitted by the City, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this Division.

13. Delivery Driver Requirements. Every delivery driver shall meet the following requirements:

a. Be an employee of the retailer.

b. Been issued an ID badge by the Chief of Police, or his or her designee, in accordance with these regulations indicating that he or she is an approved delivery driver.

c. A delivery driver shall only conduct deliveries on behalf of one (1) retailer per shift.

d. Hold a valid California Driver's License appropriate for the class of vehicle he or she will be driving.

e. Have completed a background investigation by the Chief of Police, or his or her designee, that includes a driver's license review.

f. Have in his or her possession while conducting deliveries, and present to any peace officer or City official enforcing these regulations upon request:

i. California Driver's License;

ii. Police Department issued-ID badge indicating that he or she is an approved delivery driver;

iii. Vehicle's registration and proof of required insurance;

iv. A copy of the retailer's cannabis business permit and the delivery manifest if the delivery driver is conducting a delivery for a retailer located in Redwood City.

g. The delivery driver shall at all times during deliveries carry an operating cell phone to connect with the retailer or emergency services as needed.

14. Incident Reporting Requirements.

a. Any vehicle accident resulting in injury to any person shall be reported to the local police department where the incident occurred, a manager of the retailer immediately, and to the Chief of Police, or his or her designee, within twenty-four (24) hours by emailing RWCCannabisPD@redwoodcity.org including the date, time, location, involved vehicle and driver, circumstances and local police department case number.

b. For any vehicle accident resulting in property damage only, the delivery driver shall exchange driver, vehicle, and insurance information with all involved parties, and the accident may be reported to the local police department where the incident occurred, a manager of the retailer immediately, and the Chief of Police, or his or her designee, within twenty-four (24) hours by emailing RWCCannabisPD@redwoodcity.org including the date, time, location, involved vehicle and driver, circumstances, and local police department case number, as applicable.

c. Any loss of cannabis, cannabis product, or money shall be reported to the local police department where the incident occurred and a manager of the retailer immediately, and to the Chief of Police, or his or her designee, within twenty-four (24) hours by emailing RWCCannabisPD@redwoodcity.org including the date, time, location, involved vehicle and driver, circumstances and local police department case number. Any theft of cannabis, cannabis product, or money during the delivery process shall be immediately reported to the local police department where the incident occurred and a cannabis manager immediately, and, if the incident did not occur within the investigative jurisdiction of the Redwood City Police Department, a duplicate Redwood City Police Department notification will be made by calling the non-emergency citizen contact dispatch center number at (650) 369-3331.

B. Cannabis Deliveries Originating in Redwood City. The regulations in the following subsection shall apply only to deliveries originating in Redwood City.

1. A cannabis business may receive orders for cannabis deliveries through any technology platform owned and controlled by the business, or independently approved by the Chief of Police, or his or her designee, that enables customers to arrange for or facilitate the transfer of cannabis and/or cannabis products by the cannabis business to registered customers.

2. All cannabis and cannabis product shall be placed in a secure container located within the delivery vehicle. No cannabis or cannabis product shall be removed from the secure container until it is being transferred to the intended customer or returned to the cannabis business.

3. All money received by the delivery driver shall be promptly stored in the delivery vehicle's secure container.

4. The receiving customer shall sign a receipt, delivery log, or other document confirming that he or she received his or her order. This can be accomplished electronically or via hard copy. This becomes part of the records of the delivery, and must be kept in accordance with all other record keeping requirements set forth in these regulations or any City Manager regulations.

5. Every cannabis business engaging in deliveries is required to complete a daily delivery log for each delivery vehicle deployed that day and maintain the delivery log in accordance with all other record keeping requirements.

6. Every cannabis business engaging in deliveries is required to complete a delivery manifest for each delivery vehicle deployed that day and maintain the delivery manifest in accordance with all other record keeping requirements. During delivery, a delivery manifest shall accompany the driver for the duration of the delivery and shall be made available upon request to the Chief of Police, or his or her designee, and any other City official charged with enforcing this division.

7. Upon returning to the cannabis business' premises, the delivery driver and a manager shall reconcile the delivery manifest, delivery log, remaining inventory, and all money received.

8. Prior to the close of business for the day, a manager shall ensure that all delivery information is entered into the cannabis business' records in accordance with this division.

9. Delivery drivers are not allowed to engage in other forms of commerce using the delivery vehicle until all cannabis and/or cannabis products and receipts from sales have been reconciled by the cannabis business at the conclusion of the work period.

10. In addition to the delivery log and delivery manifest, every cannabis business engaging in deliveries shall maintain detailed records of transfers of cannabis and cannabis products in accordance with this division.

11. Delivery Location Restrictions.

a. A cannabis business shall not deliver cannabis or cannabis product to any jurisdiction that prohibits deliveries.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18; Ord. No. 2490, § 11, 11-9-20)

A. The City Manager, or his or her designee, is hereby authorized to charge and collect from each cannabis business all fees associated with the permitting of that cannabis business. Prior to operating in the City of Redwood City, each cannabis business shall timely and fully pay all fees associated with the permitting of that cannabis business.

B. All fees associated with the permitting of a cannabis business shall be as set forth in the schedule of fees and charges established by resolution of the City Council.

(Ord. No. 2444, § 2, 5-7-18)

A. No cultivation at the nursery's premises shall be visible with the naked eye from any public or other private property, nor shall cannabis or cannabis product be visible from the exterior of the nursery's premises.

B. All areas devoted to cultivation shall be secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry.

C. Outdoor cannabis cultivation is prohibited within the City of Redwood City.

D. Every nursery shall maintain complete records regarding the amount of cannabis clones, immature plants, seeds and other products used for the propagation and cultivation of cannabis.

E. In addition to any records required in these regulations and any applicable City Manager regulations, every nursery shall fully comply with all track and trace requirements under state law.

(Ord. No. 2444, § 2, 5-7-18)

A. The Chief of Police, or his or her designee, any other City official charged with enforcing this Division, or any state official charged with enforcing state law regarding commercial cannabis activity, may enter the cannabis business' premises at any time during the hours of operation without notice and inspect the premises of any cannabis business as well as the recordings and records maintained pursuant to this Division.

B. It is unlawful for any owner, landlord, lessee, manager, or any other person having any responsibility over the operation of the cannabis business to refuse to allow, impede, obstruct or interfere with an inspection, or the review or copying of records and closed-circuit monitoring authorized and required under these regulations, including but not limited to the concealment, destruction, and falsification of any recordings, records, or monitoring.

(Ord. No. 2444, § 2, 5-7-18; Ord. No. 2451, § 3, 7-23-18)

A. Each cannabis business shall maintain all records and documents required by this Division and any City Manager regulations.

B. All records required by this Section shall be maintained by the cannabis business for a period of five (5) years and shall be made available by the cannabis business upon request to the City Manager, any City official charged with enforcing the provisions of these regulations, or any state official charged with enforcing state law regarding commercial cannabis activity.

C. At the request of the City Manager, any City official charged with enforcing this Division, or any state official charged with enforcing state law regarding commercial cannabis activity, all records required by this Section shall be made available in standard electronic format which shall be compatible with Microsoft Office programs and which can easily be imported into either Excel, Access, or any other contemporary software program designated by the City Manager.

D. In addition to all other formats that the cannabis business may maintain, all records required by this Section shall be stored by the cannabis business at the location in a printed format in a fire-proof safe or in an unalterable electronic format with a documented system for regular information backup that is satisfactory to the City Manager.

E. No later than September 30 th of every year, each cannabis business shall file with the City Manager an audit of its financial operations for the previous calendar year, completed and certified by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. The audit shall include but not be limited to a discussion, analysis, and verification of each of the records required to be maintained in this Division. The information contained in the audit shall be made available in standard electronic format which shall be compatible with Microsoft Office programs and which can easily be imported into either Excel, Access, or any other contemporary software program designated by the City Manager.

(Ord. No. 2444, § 2, 5-7-18)