Salinas Municipal Code Div. 3 Permits

(a) The city may issue permits pursuant to this division to businesses engaging in cannabis activities related to either or both medicinal and adult-use products.

(b) Businesses that have already received a permit as of the effective date of this article to conduct business utilizing only medicinal cannabis or cannabis products may request that their permits be amended to allow for commercial cannabis activity in the adult-use market a well. The city may impose additional conditions on the permittee as it deems appropriate and in the public interest.

(c) The requirements of this division shall be deemed to apply to both medicinal and adult-use businesses, except that requirements specifically identifying the medicinal or adult-use market shall be deemed to apply to that respective market only.

(d) Nothing in this division shall be construed to prevent the City of Salinas from developing separate regulations pertaining to medicinal and adult-use cannabis activity.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

All persons desiring to operate a cultivation, manufacturing, distribution (except small distribution as described in Section 5-07.12), dispensary, or delivery business or businesses, as defined in this article, shall first obtain a commercial cannabis permit in accordance with the requirements of this section.

(a) At a minimum, an application for a commercial cannabis permit shall contain the following:

(1) The printed full name, signature, date of birth, social security number, and present address and telephone number of all business owners and principals;

(2) The address to which correspondence from the City of Salinas is to be sent;

(3) The names and addresses of all businesses operated by and the employment of the business owners and principals for the five years immediately preceding the date of the application;

(4) Any litigation in which the applicant(s) has been involved within the five years immediately preceding the date of the application and a statement of whether any business currently operated by the applicant(s) or operated by the applicant(s) within the five years immediately preceding the date of the application has been investigated or the permit or license authorizing the operation of such business has been revoked or suspended within the five years immediately preceding the date of the application;

(5) The type of commercial cannabis business for which approval is sought, including whether the business is seeking a permit to conduct medicinal and/or adult-use cannabis activities;

(6) The approximate number of customers projected to be served by the commercial cannabis business;

(7) The address of any commercial cannabis business currently being or previously operated by all or any of the applicants;

(8) The supply sources for all cannabis and cannabis products sold at the commercial cannabis business, including the testing facilities that will be utilized to verify product safety and/or quality.

(9) For an application including cultivation, a cultivation plan that includes the following information:

a. A cultivation and operations plan demonstrating that the proposed operation would meet or exceed minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel. The plan shall also include a description of the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and harvesting, or an explanation of growth cycles and anticipated harvesting schedules for all-season harvesting (indoor, mixed-light).

b. A description of a legal water source, irrigation plan, and projected water use.

c. Identification of the source of electrical power and plan for compliance with applicable building codes and related codes.

d. Plan for addressing odor and other public nuisances which may be created by or emanate from the cultivation site.

(10) Descriptions of odor control devices and techniques to prevent odors from being detectable off-site.

(11) Procedures for identifying, managing, and disposing of contaminated, adulterated, deteriorated or excess cannabis or cannabis product.

(12) Procedures for inventory control to prevent diversion of cannabis and cannabis product, employee screening, storage of cannabis and cannabis product, personnel policies, and record-keeping procedures.

(13) A detail of the procedures to be utilized at the facility including a description of how chemicals and fertilizers will be stored, handled, used and disposed of; manufacturing methods (including whether the manufacturing processes used will be volatile or nonvolatile), the transportation process, and quality control procedures.

(14) A site plan and floor plan of the commercial cannabis business denoting the property lines and the layout of all areas of the commercial cannabis business including storage, cultivation, manufacturing, testing, distributing, reception/waiting, dispensing, and all ancillary support spaces, and the relationship of the facility to adjacent properties and land uses.

(15) Size, height, colors, and design of any proposed signage at the site. A City of Salinas sign permit issued pursuant to the Salinas Municipal Code shall be required.

(16) An operations and security plan, including the amount and method of storage for any hazardous materials used or produced on-site. For delivery and distribution companies, the security plan shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.

(17) Standard operating procedures detailing how operations will comply with state and local regulations, how safety and quality of products will be ensured, record-keeping procedures for financing, testing, and adverse event recording, and product recall procedures.

(18) Proposed hours of operation.

(19) Recycling and waste disposal information for cannabis materials.

(20) A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

(21) A Zoning Verification Letter from the Salinas Community Development Department indicating whether the proposed use is permitted, may be considered, or is not presently permitted at the subject site by Chapter 37 of the Salinas Municipal Code. The letter shall also include a list of any known sensitive uses, as defined in this article, known to be located within the distance(s) designated by this article.

(b) No person who has been charged with and has charges pending for, or has been convicted of, a drug-related crime, felony, or crime of moral turpitude within the past ten years may be engaged (actively or passively) in the operation of any commercial cannabis business, unless the drug-related crime involves the possession, sale, transport, cultivation, manufacture, or use of cannabis or cannabis-related product, the activity charged or convicted was legal according to the laws of the state in which the violation or alleged violation occurred at the time of the violation, and the individual charged has all necessary licenses, permits, and/or other approvals necessary to conduct the activity within the subject jurisdiction. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. This section shall not apply to those who have been previously charged with a crime if those charges were later dropped or the person was found not guilty of those charges.

(c) Applications shall be submitted to the city attorney. The city attorney or his/her designee shall review each application to determine whether it contains all of the required information. If the application does not contain all of the required information, the application shall be denied. The city attorney shall provide written notice to the applicant detailing the components which were not provided that led to the application's denial. Applications which include all of the required information will be forwarded to the city manager or his/her designee, which may be the selection committee, for review.

(d) The city manager shall appoint a selection committee to review applications for commercial cannabis permits. The committee shall include a minimum of three members, and each member shall represent a different department within the city. No member of the city attorney's office shall serve on the selection committee. In reviewing an application for a permit pursuant to this article or in reviewing the proposed commercial cannabis business, the selection committee may request whatever additional information is deemed necessary to carry out the purposes of this article.

(e) The Selection Committee shall have the authority to either grant or deny an application for a commercial cannabis permit. Notwithstanding what is otherwise provided in this article, the selection committee, when approving a commercial cannabis permit, may place any additional limitations and conditions on the operation of the business as deemed necessary, consistent with the public interest and with this article.

(f) When an application for a Commercial Cannabis Permit is denied, the selection committee shall convey the reasons for the denial and the findings of fact upon which the decision is based to the city attorney, who shall prepare and send a notice of denial, including the reasons for denial, to the applicant. Any person denied a commercial cannabis permit shall have the right to appeal such denial in accordance with this section.

(g) In addition to whatever additional findings may be made by the selection committee (or the appellate body or the city council in the event of an appeal initiated pursuant to this article), an application for a commercial cannabis permit may be denied upon making any of the following findings:

(1) The applicant made one or more false or misleading statements or omissions on the registration application or during the application process.

(2) The applicant is not qualified to operate a commercial cannabis business.

(3) The applicant fails to meet the requirements of this Article or any regulation adopted pursuant to this article.

(4) The operation of the proposed commercial cannabis business at the proposed location is prohibited by any state or local law or regulation.

(5) Any person who is listed on the application is ineligible to operate a commercial cannabis business due to their criminal history as specified in subsection (b) of this section.

(6) The applicant or the operator listed in the application is less than twenty-one years of age.

(7) The selection committee determines that the proposal, taken as a whole, would be unable to operate without significant impact on the community.

(8) The number of businesses of the subject application type that have been approved or permitted within the City of Salinas meets or exceeds the maximum number of that respective business type specified in this article.

(Ord. No. 2600 (NCS), § 1, 11-29-2017; Ord. No. 2603 (NCS), § 2, 5-1-2018)

(a) Each commercial cannabis permit issued pursuant to this article shall expire twelve months after the permit's effective date. The city may renew these permits each year subject to the provisions of this section.

(b) An application for renewal of a commercial cannabis permit shall be filed at least sixty calendar days prior to the expiration date of the permit.

(c) An application for renewal of a commercial cannabis permit may be rejected if any of the following exists:

(1) The application is filed less than sixty days before its expiration.

(2) The commercial cannabis permit is suspended or revoked at the time of the application for renewal or at any point during the city's consideration of the renewal request.

(3) The commercial cannabis business has failed to conform to the requirements of this article, any regulations adopted pursuant to this article, and/or the requirements of any permit issued by the city.

(4) The permittee fails to renew, is unable to obtain, or otherwise does not possess a license issued by the state.

(d) If a renewal application is rejected, a person may file a new application pursuant to this article.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

The City of Salinas recognizes that from time-to-time it may become necessary for certain businesses to make adjustments to their business models in a manner that would differ from the originally approved conditions. Modifications and amendments to permits may be requested at any time, subject to the following requirements:

(a) An applicant may request a change to the business location subject to the following requirements:

(1) The applicant shall submit all items normally required for a new application, except that information related to the principals or operations that will remain unchanged and are not directly related to the site may be excluded.

(2) The selection committee shall review the proposed new site. The selection committee may approve an amendment to the permit authorizing the new site if it can make the following findings:

a. The new site would not be located within the distances specified in Section 5-07.27, unless an exception is approved pursuant to that section.

b. The relocation to the new site would not create any significant negative impacts greater than those that existed at the original site.

c. The proposed location is located in an appropriate zoning district for the proposed use.

d. Owners of real property located within three hundred feet of the proposed site have been notified and have had the opportunity to provide information to the city regarding the proposed site.

(b) A business may elect to add or remove those individuals serving as the principals of the business, subject to the following requirements:

(1) If the only change is to add principals that will not be listed on the permit, the business shall submit the names of any new principals, including their name, address, a copy of their social security card, a copy of a driver's license or other form of government identification including the proposed principal's name, photo, and birthdate, and a copy of a criminal history check done with the Salinas Police Department listed as the requesting agency. The office of the city manager and the police department shall review the information and approve the addition if the principal meets the requirements of this article. No change to the permit will be required.

(2) If the only change is to delete principals that are not listed on the permit, the business shall submit the names of the principals to be removed to the office of the city manager. No change to the permit will be required.

(3) If the business seeks to modify the names that are listed on the approved permit, then the business shall submit a list of all business principals, including identification of each principal's role and identification of which principals would appear on the permit, background information as defined in subsection (b)(1), above, for any principals being added to the business, and a brief background of the principals' qualifications. The selection committee shall review the submitted names and may approve an amendment to the permit if the following findings can be made:

a. Any new principals added comply with the requirements for principals outlined in this article.

b. If principals are being removed, the remaining principals have the expertise and ability to continue to ensure that the business will operate in accordance with the terms of its permit and all applicable regulations and statutes.

(c) Modifications to the terms and conditions of permits may be initiated by either the permittee or the City of Salinas, in accordance with the following:

(1) When the City of Salinas initiates a proposed change to the terms and conditions of a permit, it shall notify the applicant in writing of the proposed change at least ten days prior to the effective date of the change. If the applicant submits a protest, the city shall provide the applicant with the specific reasons for the proposed change, and shall engage in a good-faith effort to develop conditions acceptable to both the applicant and the city. If the parties reach agreement, the agreed-upon language shall be utilized; if no agreement is reached, the city may revise the permit conditions as desired.

(2) When the permittee initiates a proposed change, the City of Salinas shall review the proposed changes. The selection committee shall review the proposed changes, and shall make a determination whether the proposed language is consistent with the provisions of this article. If the proposal is inconsistent with this article, the selection committee may engage with the applicant to develop mutually-acceptable conditions. Once conditions acceptable to the city have been developed, the city may amend the permit with the revised terms.

(d) Amendments to any permit shall not change the effective date or expiration date of any permit.

(e) Notwithstanding the above, if a material change to a permit is proposed prior to the first renewal of the permit, the selection committee shall review the applications and evaluations of other applicants that were not granted permits in previous application reviews to determine whether another applicant would have received the permit if the information presented in the amendment had been presented in the original application. If the selection committee determines this is the case, the amendment request shall be denied.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

A decision regarding the approval, renewal, modification, or amendment of a commercial cannabis permit may be appealed. Such an appeal shall be filed and conducted as prescribed in this section.

(a) Within ten calendar days after the date of any denial of an application, request for renewal, or request for amendment of a commercial cannabis permit, or the suspension or the revocation of a commercial cannabis permit by the city, an aggrieved party may appeal such action by filing with the city attorney a written appeal setting forth the reasons why such denial, suspension or revocation is not proper.

(b) Upon receipt of such written appeal, the city attorney shall convey the appeal to the selection committee and, if not already included, the community development director. The community development director shall set the matter for a hearing before the planning commission. The hearing shall be conducted pursuant to the procedures set forth by the city and shall be held within a reasonable time after the date of filing the appeal with the city, but in no event later than sixty days from the date of such filing. At least ten days prior to the date of the hearing on the appeal, the City of Salinas shall notify the appellant of the time and the place of the hearing. At such hearing, city officials and the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to such hearing.

(c) At the conclusion of the hearing, the planning commission may affirm, reverse or modify the decision appealed.

(d) The decision of the planning commission may be appealed to the city council in the same manner as an appeal to the planning commission, except that the hearing shall be set by the city manager or his/her designee. At the conclusion of the hearing, the city council may affirm, reverse or modify the decision appealed. The decision of the city council shall be the city's final decision in this regard and shall be dispositive of the matter.

(e) Notwithstanding the above, no right of appeal shall exist in the event that the applicant did not receive a permit and the city has already approved the maximum number of commercial cannabis permits for the respective business type.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

(a) A commercial cannabis business operating in compliance with existing Municipal Code provisions on or before February 12, 2016 may continue its current operations; provided, however, that in order to continue operating such commercial cannabis business must apply for a commercial cannabis permit pursuant to this article at the earliest possible time and otherwise meet all other conditions and requirements of this article imposed on newly established commercial cannabis businesses. Such preexisting facilities shall be given priority in the issuance of permits by the City of Salinas, and the selection committee shall grant a permit to such facility if it can be demonstrated to the city's satisfaction that the facility would be operated in accordance with the provisions of this article.

(b) Notwithstanding the above, this section shall not be construed to increase the authorized number of businesses that may be awarded commercial cannabis permits pursuant to this article. Any business that has not notified the city of its existence and asserted its legal operations on or before December 31, 2017 shall be deemed to have established legal operations after February 12, 2016, and this section shall be inapplicable.

(c) Nothing in this section shall be deemed to prevent the city from requiring the renewal of or compliance with permits issued pursuant to this article, nor shall it be construed to not require compliance with this article, including subsequent amendments to the same.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

All persons desiring to operate a commercial cannabis business described in this section shall first obtain an administrative permit in accordance with the requirements of this section. Businesses subject to the administrative permit process are not subject to the requirements of division 5 of this article; provided, however, that the business may be subject to additional requirements, including selected requirements otherwise provided in division 5, that are developed pursuant to regulations established by the city manager consistent with division 11 of this article.

(a) The office of the city manager shall issue administrative permits. The city shall develop and publish regulations related to the approval of administrative permits. The review of the administrative permit shall be limited to confirming compliance with adopted laws and regulations.

(b) Testing laboratories may be approved provided that the business has first obtained a City of Salinas business license and any land-use approvals required by the City of Salinas, has prior to the commencement of operations obtained a type 8 license from the State of California, and is otherwise compliant with state laws and regulations.

(c) A small distribution facility may be approved when the operation meets the following criteria:

(1) The distributor obtains any required state licenses and is operating in compliance with applicable state laws and regulations.

(2) The amount of space utilized for the Distribution portion of the operation shall not exceed five hundred square feet.

(3) Any cash and/or cannabis or cannabis product with a total value in excess of one thousand dollars shall be stored in a safe or vault.

(4) The site is used only as a physical location used for the drop-off or pick-up of cannabis product by a licensed testing facility or the transfer of cannabis product between licensees.

(5) This section does not include delivery of cannabis or cannabis product as defined in section 5-07.05(o).

(d) A nursery may be approved provided that the operation meets all of the following criteria:

(1) The nursery operator obtains a type 4 license from the State of California, maintains that license in good standing, and is operating in compliance with applicable state laws and regulations.

(2) The growing of cannabis at the site shall be limited to the growing of immature cannabis plants.

(3) The nursery operation must be conducted entirely within an enclosed building.

(4) Sales shall be limited to seeds, cuttings, and immature cannabis plants. Any other cannabis or cannabis products produced at the site shall be disposed of as waste pursuant to section 5-07.19.5.

(5) A nursery may obtain a small distribution permit at the same site, provided that the distribution occurring is accessory to the use of the nursery.

(6) The nursery shall be subject to requirements specified in section 5-07.36.

(e) A research and development facility may be approved provided that the operation meets the following criteria:

(1) The business has first obtained a City of Salinas business license and any land-use approvals required by the City of Salinas, has prior to the commencement of operations obtained any required licenses from the State of California, and is otherwise compliant with state laws and regulations.

(2) Any facility which includes the growing of mature cannabis plants or the extraction of oils shall include odor control devices and techniques to ensure that odors from cannabis are not detectable off-site.

(3) Any cash and/or cannabis or cannabis product with a total value in excess of one thousand dollars shall be stored in a safe or vault. This excludes living cannabis plants; however, operations which will include more than thirty square feet of canopy space for mature cannabis plants shall require the approval of a security plan as described in section 5-07.25 of this article.

(4) A research and development facility may not sell, whether wholesale or retail, any cannabis or cannabis product, and all used or unused cannabis and/or cannabis product shall be disposed as waste pursuant to section 5-07.19.5.

(5) A research and development facility may obtain a small distribution permit at the same site, provided that the distribution occurring is accessory to the use of the nursery.

(Ord. No. 2600 (NCS), § 1, 11-29-2017; Ord. No. 2603 (NCS), § 3, 5-1-2018)

The following uses are exempt from the provisions of division 4 and division 5 of this article and may be conducted in accordance with California Law without the need to obtain a permit pursuant to this article from the City of Salinas:

(a) The operation of a personal grow, as defined herein, provided that the operation complies with the following requirements:

(1) The personal grow shall be located wholly inside a private residence, or wholly inside a fully enclosed and secure accessory structure located upon the grounds of a private residence. The cultivation of cannabis outdoors or within an accessory structure that is not fully enclosed and secure is prohibited in all residential areas. For purposes of this section, "private residence" means a house, an apartment unit, a mobile home, or other similar dwelling, but excludes any commercial or industrial building or space.

(2) Not more than six living plants may be planted, cultivated, harvested, dried, or processed within a single private residence, or upon the grounds of that private residence, at one time.

(3) The owner of the cannabis plants and any cannabis produced from those plants shall reside at the residence. Growing or possessing cannabis or cannabis plants at any residence that is not the owner's primary residence is prohibited.

(4) The living plants and any cannabis produced by the plants in excess of 28.5 grams shall be kept within the person's private residence (or within a fully enclosed and secure accessory structure located upon the grounds of that private residence) in a locked space that is not visible by normal unaided vision from a public place. The resident shall ensure that the space in which the plants are kept is secured to prevent access from any persons under the age of twenty-one years, including those residing at the residence.

(5) This section shall not negate the need for any person to obtain any building permits for work done on the site, including electrical and plumbing work.

(6) This subsection shall not be construed to require a property owner to allow the cultivation or possession of cannabis or cannabis products by any persons that are renting or visiting the property. The property owner and renters/guests may include additional restrictions beyond those specified in the law through private agreements such as leasing documents.

(7) The growing of any and each cannabis plant within a residential district that does not comply with the requirements of this section is a violation of this article and shall be subject to the remedies defined in Section 5-07.16.

(b) A primary caregiver who cultivates, possesses, stores, manufactures, transports, donates, or provides cannabis exclusively for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 of the California Health and Safety Code, but who does not receive remuneration for these activities except for compensation in full compliance with subdivision (c) of Section 11362.765 of the California Health and Safety Code.

(c) Delivery of cannabis or cannabis products by a business holding a license from the State of California permitting that activity, and that has no physical facilities located within the City of Salinas, provided that the business complies with the following:

(1) The business obtains and maintains a valid business license from the City of Salinas.

(2) All cannabis and cannabis products sold shall have been cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the state and local regulations.

(3) No edible cannabis products requiring refrigeration or hot-holding shall be sold or distributed. Baked products (e.g., brownies, bars, cookies, cakes), tinctures, and other non-refrigerated type items may be sold.

(4) The business shall make all records related to testing laboratory results for the cannabis or cannabis product being delivered available to the consumer upon request.

(5) Any edible cannabis or edible cannabis product shall be labelled and in tamper-evident packaging which at least meets the requirements of California Business and Professions Code section 26120, as the same may be amended from time-to-time or superseded or replaced by subsequent state legislation or by any department or division of the State of California.

(6) Prior to dispensing medicinal cannabis or medicinal cannabis products to any person, the business shall obtain additional voice verification from the recommending physician's office that the person requesting cannabis or cannabis products is a qualified patient.

(7) Any cannabis or cannabis product must be in an opaque (non-see-through) package, such as a bag, at the time of delivery.

(8) The delivery company shall collect all sales and use taxes and/or transaction taxes required under local and/or state law, and shall remit those monies to the State of California for disbursement to the City of Salinas in accordance with established reporting principles. Any tax that has not been remitted to the city shall be deemed a debt owed to applicable state agencies and/or the City of Salinas by the person required to collect and remit the tax.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

It is the responsibility of all persons engaging in cannabis activity to ensure that they are, at all times, operating in a manner compliant with all applicable state and local laws and any regulations promulgated thereunder. Nothing in this article shall be construed as authorizing any actions which violate state law or local law.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

(a) No person may commence or continue any cannabis activity in the City of Salinas without timely paying in full all fees and charges associated with the operation of said cannabis activity. Fees and charges associated with the operation of a cannabis activity shall be established by resolution of the city council.

(b) All commercial cannabis businesses operating pursuant to this article shall pay any and all applicable sales, use, business or other taxes, and all license, registration, or other fees pursuant to federal, state, and local law.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

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

(b) Each and every violation of this article shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the Salinas Municipal Code. Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, any permit issued pursuant to this article being deemed null and void; disgorgement of any payment to the City of Salinas of any and all monies unlawfully obtained; costs of abatement; costs of investigation; attorney fees; and any other relief or remedy available at law or in equity. The City of Salinas may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the cannabis activity or persons related thereto, or associated with, the cannabis activity. Additionally, when the chief of police or his/her designee determines there is an imminent threat to public health, safety or welfare, the commercial cannabis permit, issued by the City of Salinas pursuant to this article, will immediately become suspended.

(c) Each and every violation of the provisions of this article may be prosecuted as a misdemeanor and upon conviction subject to a fine not to exceed one thousand dollars or imprisonment in the county jail for a period of not more than twelve months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense.

(d) Notwithstanding an initial verification of compliance by the cannabis activity with the provisions of this article, any person engaging in cannabis activity that is later found to be in violation of any of the requirements of this article at any time is subject to the enforcement provisions provided in this section.

(e) The remedies provided herein are not to be construed as exclusive remedies and in the event of a violation the city may pursue any proceedings or remedies otherwise provided by law.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)

To the fullest extent permitted by law, the City of Salinas shall not assume any liability whatsoever with respect to having issued a commercial cannabis permit pursuant to this article or otherwise approving the operation of any commercial cannabis business pursuant to this article. As a condition of approval of any commercial cannabis permit issued pursuant to this article, the person to which a commercial cannabis permit is issued shall be required to meet all of the following conditions:

(a) Execute an agreement indemnifying, defending (at its sole cost and expense), and holding the City of Salinas and its officers, employees, representatives, and agents harmless from any and all claims, losses, damages, injuries or liabilities associated with the permitting or approving the operation of a commercial cannabis activity or the operation thereof or associated with the commercial cannabis business or its members' violation of any federal, state or local laws.

(b) Reimburse the City of Salinas for any and all costs and expenses, including attorney fees and costs and court costs that the City of Salinas may be required to pay as a result of any legal challenge related to the city's approval of a commercial cannabis permit pursuant to this article or the City of Salinas's approval of the operation of a commercial cannabis activity. The City of Salinas may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the obligations imposed under this section.

(Ord. No. 2600 (NCS), § 1, 11-29-2017)