South El Monte Municipal Code Ch. 5.26 Commercial Cannabis Operations Regulatory Program

Note: Prior ordinance history: Ords. 1131, 1142, 1144, 1155, 1193, 1200 and 1216.

A. The purpose of this chapter is to establish a comprehensive set of regulations with an attendant regulatory permit applicable to the operation of certain types of commercial cannabis operations, while simultaneously establishing an express prohibition on certain other types of commercial cannabis operations.

B. The regulations for, and prohibitions on, specific types of commercial cannabis operations are enacted to preserve the public health, safety, and welfare of the residents and visitors of the city, consistent with the state's Compassionate Use Act of 1996, Medical Marijuana Program Act of 2003, Adult Use of Marijuana Act of 2016, MAUCRSA, and all applicable state laws governing commercial cannabis operations.

C. The issuance of a commercial cannabis operation permit shall constitute a revocable privilege and shall not create or establish any vested rights for the development or use of a property.

D. This chapter and any administrative regulations adopted pursuant to this chapter shall be known as the "commercial cannabis operations regulatory program" or the "program."

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

It is unlawful to own, establish, operate, use, or permit the establishment or activity of a commercial cannabis operation, or to participate in commercial cannabis operations as an employee, contractor, agent, volunteer, or in any manner or capacity, other than as provided in this chapter and pursuant to both a current and valid city commercial cannabis operation permit, as well as the equivalent state license for such commercial cannabis operation as provided for by Section 26050 of the State Business and Professions Code, and as amended from time to time. The prohibition contained in this section shall include renting, leasing, or otherwise permitting a commercial cannabis operation to occupy or use a location, vehicle, or other mode of transportation.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

As used in this chapter, the following words and phrases shall have the following meanings. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to state statutes include any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.

"Adult use" (i.e., "recreational" or "nonmedical")

refers to activity involving cannabis or cannabis products, which is restricted to adults twenty-one years of age and older and who do not possess a physician's recommendation, in contrast to an activity involving medical cannabis or medical cannabis products.

"Alcohol or drug treatment facility"

shall have the same definition as "alcoholism or drug abuse recovery or treatment facility" as defined in Section 11834.02(a) of the State Health and Safety Code, which currently defines the term as "any premises, place, or building that provides residential nonmedical services to adults who are recovering from problems related to alcohol, drug, or alcohol and drug misuse or abuse, and who need alcohol, drug, or alcohol and drug recovery treatment or detoxification services." Further, "alcohol or drug treatment facility" shall also include such a facility that provides treatment for minors to the extent permitted by law.

"Applicant"

means a person who files an application for a commercial cannabis operation permit under this chapter (and shall not include the owners or the managers of the applicant).

"Cannabis"

means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" 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 concentrate"

means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

"Cannabis products"

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.

"City"

means the city of South El Monte, state of California.

"City attorney"

means the city of South El Monte city attorney, and includes his or her designee(s).

"City council"

means the city council of the city of South El Monte.

"City manager"

means the city of South El Monte city manager, and includes his or her designee(s).

"Code"

means the city of South El Monte Municipal Code, as may be amended.

"Commercial cannabis operation"

includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale (including retail and wholesale, and including medical-only and adult-use sales) of cannabis and cannabis products; except, as applicable, the activities provided in Section 5.26.220(A) or as preempted by state law.

"Commercial cannabis operation permit"

shall mean a city permit issued pursuant to the procedures provided for in this chapter allowing the permit holder to operate a specific type of commercial cannabis operation in the city subject to the requirements of this chapter, state law, and the specific permit.

"County"

means the county of Los Angeles, state of California.

"Cultivation"

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

"Customer"

means a natural person twenty-one years of age or over or a natural person eighteen years of age that is a qualified patient or primary caregiver.

"Day care center"

means, a facility other than a family day care home, infant centers, toddler, preschool, and school age children licensed by the State Department of Social Services pursuant to Section 1596.951 of the State Health and Safety Code. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code, this definition of "day care center" under this chapter shall override the definition of "day care center" in MAUCRSA at Section 26001 of the State Business and Professions Code.

"Delivery"

means the commercial transfer of cannabis or cannabis products to a customer, and includes the use of any technology platform owned and controlled by the same person making such use.

"Director"

means the city of South El Monte community development director, and includes his or her designee(s).

"Distribution"

means the procurement, sale, and transport of cannabis and cannabis products between entities licensed for and/or engaged in commercial cannabis operations under state law.

"Distributor"

means a person engaged in distribution.

"Edible"

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

"Employee"

means any person (whether paid or unpaid) who provides regular labor or regular services for a commercial cannabis operation, including, but not limited to, at the location of a commercial cannabis operation. The term "employee" includes managers and owners as used in this chapter.

"Extraction"

means the process of obtaining cannabis concentrates from cannabis plants, including, but not limited to, through the use of solvents like butane, alcohol or carbon dioxide.

"Finance director"

means the city of South El Monte finance director, and includes his or her designee(s).

"Fire chief"

means the Los Angeles County fire department chief, and includes his or her designee(s).

"Gross receipts"

means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest paid or payable, losses, or any other expense whatsoever. However, the following shall be excluded from gross receipts:

Cash discounts where allowed and taken on sales;

Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's business;

Cash value of sales, trades, or transactions between departments or units of the same business;

Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a given year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in the amount of gross receipts for the period when they are recovered;

Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; and

Any proceeds resulting from a transfer or change of ownership or control in the business.

"Identification card"

has the same definition as provided for in Section 11362.7(g) of the State Health and Safety Code, and as may be amended, defined as "a document issued by the [State Department of Health Services] that identifies a person authorized to engage in the medical use of cannabis and the person's designated primary caregiver, if any."

"Labeling"

means any label or other written, printed, or graphic matter upon cannabis or a cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product.

"Labor peace agreement"

means an agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the city's proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent the cannabis retailer's employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer's employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment.

"Liquid assets"

means assets that can be readily converted into cash. "Liquid assets" include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. "Liquid assets" does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto.

"Location"

means any parcel of land, whether vacant or occupied by a building, group of buildings, or accessory buildings, and includes the buildings, structures, yards, open spaces, lot width, and lot area.

"Lighting"

means the act of illuminating as well as the effect achieved by the arrangement of lights.

"LiveScan"

means a system for inkless electronic fingerprinting and the automated background check developed by the California Department of Justice ("DOJ") that involves digitizing fingerprints and electronically transmitting the fingerprint image data along with personal descriptor information to computers at the DOJ for completion of a criminal record check; or such other comparable inkless electronic fingerprinting and automated background check process as determined by the city council.

"Manager"

means an employee responsible for management and/or supervision of a commercial cannabis operation, including, but not limited to, any: (1) manager or managing member or other officer of a limited liability company; or (2) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation.

"Manufacture" or "manufacturing"

means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product; includes the activities of a manufacturer.

"Manufacturer"

means a person that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container; includes the activity of manufacturing.

"Marijuana"

has the same definition as provided for "cannabis" in this chapter.

"MAUCRSA"

means the State Medicinal and Adult-Use Cannabis Regulation and Safety Act, codified at Section 11018 et seq., of the State Health and Safety Code, Section 26001 et seq., of the State business and Professions Code, Section 34010 of the State Revenue and Tax Code, and Section 81000 et seq., of the State Food and Agriculture Department Code, as may hereinafter be amended.

"Medical"

refers to activity involving medical cannabis or medical cannabis products, in contrast to an activity involving adult-use cannabis or adult-use cannabis products.

"Medical cannabis" or "medical cannabis product"

means cannabis or a cannabis product used in compliance with state law for medical purposes, pursuant to the Compassionate Use Act (Section 11362.5 of the State Health and Safety Code), the Medical Marijuana Program Act (Section 113262.7 et seq., of the State Health and Safety Code ), and the MAUCRSA.

"Microbusiness"

shall have the same definition as provided for in Section 26070 of the State Business and Professions Code, and as may be amended.

"Minor"

means a person under twenty-one years of age.

"Nursery"

means a person that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

"Operations officer(s)"

shall refer to the director, the fire chief, the police chief, the finance director and the city manager, individually or collectively.

"Owner"

means any of the following:

A person owning in the aggregate equity interests representing ten percent or more of the voting power of all outstanding equity in the applicant or a commercial permittee;

The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or

A member of the board of directors of a nonprofit applicant or permittee.

"Package"

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

"Packaging" or "packages"

means an activity involved with placing cannabis or cannabis products in a package.

"Park"

means public land which has been designated for park or recreational activities, including, but not limited to, a park, playground, nature trails, swimming pool, athletic field, basketball court, tennis court, pedestrian or bicycle paths, beaches, open space, or similar public land within the city or which is under the control, operation or management of the city recreation and parks department. "Park" shall not include any youth center.

"Permittee"

means a person issued a commercial cannabis operation permit by the city.

"Person"

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

"Person with an identification card"

has the same definition as provided for in Section 11362.7(c) of the State Health and Safety Code, and as may be amended, defined as "an individual who is a qualified patient who has applied for and received a valid identification card pursuant to this article."

"Physician's recommendation"

means a determination from a physician that a patient's medical cannabis use is deemed appropriate and is recommended by the physician on the basis of the physician has determined that the patient's health would benefit from the use of cannabis in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief, in strict accordance with Section 11362.5 of the State Health and Safety Code.

"Police chief"

means the Los Angeles County sheriff, and includes his or her designee(s).

"Police department"

means the Los Angeles County sheriff's department.

"Premises"

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

"Primary caregiver"

has the same definition as provided for in Section 11362.7(d) of the State Health and Safety Code, and as may be amended, defined as "the individual, designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person." A "primary caregiver" shall also meet the requirements of Section 11362.7(e) of the State Health and Safety Code, and as may be amended, which provide that a "primary caregiver shall be at least eighteen years of age, unless the primary caregiver is the parent of a minor child who is a qualified patient or a person with an identification card or the primary caregiver is a person otherwise entitled to make medical decisions under state law pursuant to Section 6922, 7002, 7050, or 7120 of the Family Code."

"Qualified patient"

has the same definition as provided for in Section 11362.7(f) of the State Health and Safety Code, and as may be amended, defined as "a person who is entitled to the protections of Section 11362.5, but who does not have an identification card issued pursuant to this article."

"Religious institution"

means any church, synagogue, mosque, temple, or building which is used primarily for religious worship, religious education, and related religious activities.

"Residentially zoned property"

means any parcel of land located within the city zoned: R-1 (single-family residential zone), R-2 (multiple residential zone), or R-3 (multiple residential zone).

"Retailer"

means a person engaged in the retail sale or delivery of cannabis or cannabis products to a customer. "Retailer" includes "retailer (medical-only)" and "retailer (medical/adult use)." "Retailer (medical-only)" refers to a retailer which is restricted by the terms of its commercial cannabis operation permit to engaging in the retail sale or delivery of medical cannabis or cannabis products as stated in Section 5.26.120(A). "Retailer (medical/adult-use)" refers to a retailer which is not so restricted by the terms of its commercial cannabis operation permit, and which accordingly may engage in the retail sale or delivery of medical or adult-use cannabis or cannabis products to a customer.

"Retail sale(s)"

means any commercial cannabis operation involving the retail sale of cannabis or cannabis products from a retailer.

"Sale(s)"

means any sale, exchange, or barter or other transaction for any consideration.

"School"

means as evidenced by the State Department of Education school directory, a public school instructing children in grades kindergarten through grade 12, as authorized by the State Department of Education or a private school instructing children in grades kindergarten through grade 12 that has filed a verification of private school affidavit with the State Department of Education pursuant to Section 33190 of the State Education Code, excluding any private school in which education is primarily conducted in a private home. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code, this definition of "school" under this chapter shall override the definition of "school" used in MAUCRSA or Section 11362.768 of the State Health and Safety Code.

"Site"

means the premises and actual physical location of a commercial cannabis operation, as well as its accessory structures and parking areas.

"State"

means the state of California.

"Testing laboratory" or "testing"

refers to a laboratory, facility, or entity that offers or performs tests on cannabis or cannabis products; includes the activity of laboratory testing.

"Youth center"

means: (1) any public or private facility that is primarily used to host recreational or social activities for minors, such as private youth membership organizations or clubs, social service teenage club facilities; or (2) a park, playground, or recreational area specifically designed to be used by children that may have play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any facility located on a public or private school grounds, or on city, county, or parks. "Youth center" shall not include any private martial arts, yoga, ballet, music, or similar studio of this nature nor shall it include any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor's office primarily serving children. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code, this definition of "youth center" under this chapter shall override the definition of "youth center" in MAUCRSA at Section 26001 of the State Business and Professions Code.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. Commercial cannabis operations (including nonprofit operations) within the city that involve the activities of non-storefront retailer (whether medical-only or medical/adult-use), cultivation, manufacturer, testing, distribution, or microbusiness are prohibited, including, but not limited to, commercial cannabis operations licensed by the state in the license classifications listed below as provided in Section 26050 of the State Business and Professions Code:

1. Type 1 = Cultivation; Specialty Outdoor; Small.

2. Type 1A = Cultivation; Specialty Indoor; Small.

3. Type 1B = Cultivation; Specialty Mixed-Light; Small.

4. Type 1C = Cultivation; Specialty Cottage; Small.

5. Type 2 = Cultivation; Outdoor; Small.

6. Type 2A = Cultivation; Indoor; Small.

7. Type 2B = Cultivation; Mixed-Light; Small.

8. Type 3 = Cultivation; Outdoor; Medium.

9. Type 3A = Cultivation; Indoor; Medium.

10. Type 3B = Cultivation; Mixed-Light; Medium.

11. Type 4 = Cultivation; Nursery.

12. Type 5 = Cultivation; Outdoor; Large.

13. Type 5A = Cultivation; Indoor; Large.

14. Type 5B = Cultivation; Mixed-Light; Large.

15. Type 6 = Manufacturer 1.

16. Type 7 = Manufacturer 2.

17. Type 8 = Testing.

18. Type 9 = Non-Storefront Retailer (Delivery Only).

19. Type 11 = Distributor.

20. Type 12 = Microbusiness.

B. The prohibition provided by above subsection A includes any similar activities authorized under new or revised state licenses, or any other state authorization, to allow any type, category or classification of cannabis commercial operations that involve the activities of non-storefront retailer (Type 9, i.e., delivery only) (whether medical-only or medical/adult-use), cultivation, manufacturer, testing, distribution, microbusiness, or similar operations (including nonprofit, collective or cooperative operations).

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. Commercial cannabis operations (including nonprofit operations) within the city which involve the activity of retailer (Type 10: medical-only and medical/adult-use) are allowed subject to issuance and maintenance of a valid and current city commercial cannabis operation permit, continuing adherence to this entire chapter and all applicable city and state regulations and laws, and issuance and maintenance of a valid and current equivalent state license type listed below, as provided for in Section 26050 of the State Business and Professions Code:

1. Type 10 = Retailer (Medical-Only; Medical/Adult-Use).

B. The requirements provided by above subsection A apply to any similar activities authorized under new or revised state licenses, or any other state authorization, to allow any type, category or classification of cannabis commercial operations that involve the activity of retailer (medical-only and medical/adult-use) or similar operations (including nonprofit, collective or cooperative operations).

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. The number of commercial cannabis operation permits for retailer (medical/adult-use) commercial cannabis operations based within the city shall be no more than one.

B. Notwithstanding subsection A of this section, if the city council opts, in its sole discretion, to reinstitute the application procedure after the first year following the operative date of this chapter pursuant to Section 5.26.070(H), then two additional retailer (medical/adult-use) commercial cannabis operation permits may be issued such that the maximum number of commercial cannabis operation permits for retailer (medical/adult-use) commercial cannabis operations based within the city shall be increased to no more than three retailers (medical/adult-use).

C. The number of commercial cannabis operation permits for non-storefront retailer (delivery only) (whether medical-only or medical/adult-use) (including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city shall be zero. However, should a court of competent jurisdiction, as a judicial remedy, order the city council to increase the maximum number of commercial cannabis operation permits for non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city, the number of commercial cannabis operation permits for non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city shall be no more than two.

D. The maximum number of commercial cannabis operation permits issued for retailer (including medical-only and medical/adult use retailer, individually and collectively) commercial cannabis operations based within the city or non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) based outside the city may not be amended by the city council or regulations promulgated by the city manager pursuant to this chapter. However, the city council may and shall increase the maximum number of commercial cannabis operation permits issued for retailer commercial cannabis operations based within the city or non-storefront retailer (delivery only) (including retailers or microbusinesses engaged in delivery) based outside the city: (1) if ordered to do so by a court of competent jurisdiction as a judicial remedy; or (2) by a vote of the people of the city.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. Following the effective date of this chapter, the city manager, pursuant to Section 5.26.140, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of applications for retailer (medical-only and medical/adult-use) commercial cannabis operations up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060.

B. The city manager shall, as a ministerial duty, cease acceptance of commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations thirty days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations.

C. Within thirty days of ceasing the acceptance of commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations, the city manager shall, as a ministerial duty, review timely submitted commercial cannabis operation permit applications for retailer (medical-only and medical/adult-use) commercial cannabis operations for the following minimum requirements:

1. Payment of an application fee established by resolution of the city council to cover all costs incurred by the city in the application process;

2. Sufficient evidence of the legal right to use the proposed property for the proposed use, including, without limitation, a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a commercial cannabis operation permit or other approvals. The city shall only consider one applicant per property address or county assessor's identification number. In the event that more than one applicant applies for a commercial cannabis operation permit application at a given property address or a given county assessor's identification number, the city manager shall, as a ministerial duty, only accept the commercial cannabis operation permit application with the earliest effective date for the evidence of the legal right to use the proposed property for the proposed use in the name of the applicant;

3. Sufficient evidence to demonstrate that the proposed property complies with the location and zoning requirements in Section 5.26.120;

4. Proof that an owner or owners of the applicant with an aggregate ownership interest of fifty percent or more has served as an owner or owners with an aggregate ownership interest of fifty percent or more of six or more other retailer (medical-only or medical/adult-use) commercial cannabis operations by a city, county, or state since at least January 1, 2022;

5. Proof of funds showing that the applicant has access and control of over five hundred thousand dollars in liquid assets (which such liquid assets having been under possession for at least ninety days prior to the date of the application submission under this section), which may be shown via a binding legal agreement in the name of the applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement that demonstrates access and control of over five hundred thousand dollars in liquid assets under possession for at least ninety days prior to the date of the application submission under this section. Applicants and permittees shall not be required to show that the applicant or permittee has access and control of over five hundred thousand dollars in liquid assets except on initial application pursuant to this Section 5.26.070, a change in location application pursuant to Section 5.26.100, or an ownership transfer application pursuant to Section 5.26.100;

6. For an applicant with two or more employees, proof of a labor peace agreement between a bona fide labor organization and the applicant (the applicant shall provide the city with a copy of the labor peace agreement that contains the signatures of the union representative and the cannabis business). For applicants with less than two employees who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within thirty days after employing two employees;

7. A set of plans, including a site development plan, floor plan(s), building elevations (all four sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;

8. Colored interior and elevation renderings;

9. A completed background check application and receipt for each owner and manager of the applicant pursuant to Section 5.26.110(H);

10. The following application components: (a) qualifications of the applicant's owners and managers, (b) business and operations plan, (c) security plan, (d) safety plan, (e) neighborhood compatibility plan, (f) labor and employment plan, and (g) community benefits plan; and

11. Disclosure of whether the applicant is applying for a commercial cannabis operation permit as a retailer (medical-only) or retailer (medical/adult-use).

D. Within sixty days of completing the application review under subsection C above, the city manager shall, as a ministerial duty, review and score any complete applications pursuant to the following objective review criteria according to the following quantitative evaluation scale, with retailer (medical-only) applicants ranked only against other retailer (medical-only) applicants and retailer (medical/adult-use) applicants ranked only against other retailer (medical/adult-use) applicants unless otherwise provided by administrative regulations promulgated pursuant to Section 5.26.140:

1. Qualifications of the Applicant's Owners and Managers—Two Hundred Fifty Points. The people of the city find that a proven track-record of for retailer commercial cannabis operations that successfully generate tax revenue carries out the purpose and intent of the program and are, therefore, critical for an applicant to demonstrate the qualifications of the applicant's owners and managers. Accordingly, one hundred fifty of the two hundred fifty points awardable under this subsection shall only be awarded, as a ministerial duty, if an owner or owners of the applicant with an aggregate ownership interest of fifty percent or more is currently at the time of application submission under this section an owner or owners with an aggregate ownership interest of fifty percent or more of a single licensed and lawfully operating retailer commercial cannabis operations (excluding any non-retailer microbusiness, cultivation, manufacturing, distribution, or other nonretailer commercial cannabis operation components) that has generated at least five million dollars in gross receipts in a consecutive six-month period in the year immediately preceding the date of the application submission under this section, as demonstrated by tax payment receipts from, tax filings to, or tax returns filed with a city, county, or state.

The remaining one hundred of the two hundred fifty points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to fifty points—A description of the applicant's owner and manager qualifications detailing any special business or professional qualifications or licenses of the applicant's owner and manager that would add to the quality of services that the retailer commercial cannabis operation would provide, including in areas related to cannabis, such as legal, finance, business ownership/administration, waste management, real estate development, scientific, or healthcare or wellness fields.

b. Up to fifty points—Documentation that the applicant's owners and managers have experience operating retailer commercial cannabis operations in any jurisdiction where retailer commercial cannabis operations are permitted.

2. Plans, Renderings, and Overall Location—Fifty Points. The fifty points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to ten points—A premises diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code of Regulations.

b. Up to ten points—A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in this Code. Information on existing conditions shall include:

i. Exterior photographs showing all sides of any existing structure(s);

ii. Photographs of existing parking areas, landscaping, trash enclosure, and signage;

iii. Information on existing use on the site, including the addresses, uses, and square footages;

iv. Photographs of the existing site if the site is vacant; and

v. Photographs of adjacent properties for context.

c. Up to ten points—A floor plan showing information on the existing layout and proposed layout of the building interior.

d. Up to ten points—Building elevations that provide information on existing conditions and proposed improvements.

e. Up to five points—A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species.

f. Up to five points—Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements).

3. Business and Operations Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to ten points—A written description of the total square footage of the facility with estimated square footage of proposed uses.

b. Up to ten points—A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.

c. Up to ten points—A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.

d. Up to five points—A description of the sources(s) of capital and use(s) of capital.

e. Up to ten points—Pro forma financial statements for at least three years of operation.

f. Up to five points—A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.

g. Up to five points—A description of marketing procedures and tactics.

h. Up to ten points—A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.

i. Up to five points—A description of hours of operation and opening procedures.

j. Up to ten points—A description of cash handling procedures.

k. Up to ten points—A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software.

l. Up to ten points—A description of transportation, loading and unloading, distribution, or delivery procedures.

4. Security Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to twenty points—The security plan shall be prepared by a professional security consultant.

b. Up to ten points—A premises security diagram.

c. Up to fifty points—A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this chapter.

d. Up to ten points—A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.

e. Up to ten points—A description of the services of on-site security guards to include the: (i) number of security guards; (ii) hours security guards will be on site; (iii) locations where security will be positioned; and (iv) security guard responsibilities.

5. Safety Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to twenty points—The safety plan shall be prepared by a professional fire prevention and suppression consultant.

b. Up to ten points—A premises safety diagram to include: (i) a description/illustration of evacuation routes; and (ii) location of fire extinguishers and other fire suppression equipment.

c. Up to fifty points—A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this chapter.

d. Up to ten points—Identify all gases, pesticides, and chemicals to be used and their storage locations.

e. Up to ten points—A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.

6. Neighborhood Compatibility Plan—One Hundred Points. The one hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to forty points—A "Good Neighbor Policy" that: (i) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis business; and (ii) describes how the cannabis business and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.

b. Up to twenty points—A description of odor mitigation practices to include: (i) identifying potential sources of odor; (ii) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (iii) all proposed staff odor training and system maintenance.

c. Up to twenty points—A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant's security measures and methods of rendering waste unusable and unrecognizable.

d. Up to twenty points—A description of efforts at sustainability/environmental impact mitigation.

7. Community Benefits Plan—Three Hundred Fifty Points. The people of the city find that monetary donations to local nonprofit organizations, financial support of city sponsored activities or organizations, in kind donations to the city or other charitable organizations, and economic incentives to the city, carry out the purpose and intent of the program and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, two hundred of the three hundred fifty points awardable under this subsection shall only be awarded if the applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to two percent of projected gross receipts of the applicant to a public school located within the city, a public park located within the city, and/or a public or nonprofit community organization serving the city or its residents. Beyond the above and as a ministerial duty, no further direct financial contributions shall be considered as part of an applicant's community benefits plan.

The remaining one hundred fifty of the three hundred fifty points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to fifty points—A description of a social responsibility plan to include identification of a community liaison, plans to serve as a social equity business incubator, plans to aide and participate in the work of local nonprofits, community-based organizations, civic organizations, or social services organizations.

b. Up to fifty points—A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.

c. Up to fifty points—A proposal and description of any community benefits agreement proposed by the applicant pursuant to Section 5.26.130.

8. Labor and Employment Plan—Two Hundred Points. The people of the city find that a proven track-record of cannabis retailer operations with high labor standards and commitment to labor peace carries out the purpose and intent of the program and are, therefore, critical for an applicant to demonstrate an effective labor and employment plan. Accordingly, one hundred of the two hundred points awardable under this subsection shall only be awarded if the applicant provides documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of fifty percent or more have entered into collective bargaining agreements with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section) and such collective bargaining agreements accrete or automatically apply to all cannabis retailers permitted or licensed in the state after July 1, 2021 (notwithstanding the fact that employees of such cannabis retailers permitted or licensed in the state after July 1, 2021 (if any), have yet to have had an opportunity to recognize the labor organization that currently represents cannabis workers in the United States), by the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety percent or more referenced above.

The remaining one hundred of the two hundred points awardable under this subsection shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to ten points—An organizational chart of showing owners, managers, and employees.

b. Up to ten points—A description of the owner's and manager's roles in day-to-day operations and decisions.

c. Up to ten points—A description of the number of employees, title/position, and their respective responsibilities.

d. Up to fifteen points—A description of compensation to employees, opportunities for continuing education, and employee training.

e. Up to fifteen points—A description of whether the cannabis business is committed to offering employees a living wage.

f. Up to fifteen points—A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.

g. Up to fifteen points—A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.

h. Up to ten points—A description of a plan to have at least fifty percent of employee positions filled and hours worked by employees residing in the city.

E. Upon timely receipt of a commercial cannabis operation permit application, the city manager shall conduct background checks in accordance with Section 5.26.110(H). Following review and scoring of applications completed pursuant to objective review criteria under subsection D, the city manager shall, as a ministerial duty, recommend that the city council issue commercial cannabis operation permits to applicants in order of their rank under subsection D up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060. The city council shall consider the city manager's recommendations, and may conduct its own independent review and scoring of applications completed pursuant to objective review criteria under subsection D and substitute such review and scoring for that of the city manager in whole or in part if it sees fit to do so, and shall thereupon, as a ministerial duty, issue commercial cannabis operation permits to applicants in order of their rank under subsection D up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060. For the initial iteration of the application process pursuant to this section, the number of commercial cannabis operation permits issued shall be no more than the maximum number of commercial cannabis operation permits authorized in Section 5.26.060(A). In the event of a tie in the order of ranking under subsection D between one or more applicants up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060, the city council shall, as a ministerial duty, break the tie and issue commercial cannabis operation permits to the applicants with the highest scoring application component in the following order: (1) qualifications of the applicant's owners and managers; (2) community benefits plan; (3) labor and employment plan; (4) security plan; (5) safety plan; (6) neighborhood compatibility plan; (7) business and operations plan; and (8) plans, renderings, and overall location. In the event of a tie on all application components between one or more applicants up to the maximum number of commercial cannabis operation permits authorized in Section 5.26.060, the city manager shall arrange for the tied applicants to provide public presentations before the city council, after which the city council shall publicly rank the applicants pursuant to ranking sheets prepared by the city manager that achieve a forced ranking based on all of the objective review criteria and quantitative evaluation scale in subsection D, and the city council shall issue commercial cannabis operation permits to applicants in order of their rank up to the maximum number of commercial cannabis operation permits available following the city manager's/city council's original ranking and issuance of commercial cannabis operation permits and the limits contained in Section 5.26.060. However, the city council shall not issue a commercial cannabis operation permit to any applicant with an applicant, owner, or manager that:

1. Provided false or misleading information on the applicant's commercial cannabis operation permit application;

2. Has been convicted of (or pled no contest to) "an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made" as that term is defined in Section 26057(b)(4) of the State Business and Professions Code; or

3. Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis operations or has had a license suspended or revoked under MAUCRSA in the three years immediately preceding the date the application was submitted.

F. Any decision of the city council under this section shall be a final administrative decision not subject to administrative appeal under any provisions of this chapter or any provisions of this Code but, rather, subject to judicial review and remedies.

G. In the event that: (1) the number of issued commercial cannabis operation permits falls below the maximum number of commercial cannabis operation permits for retailer (medical-only or medical/adult-use) commercial cannabis operations authorized in Section 5.26.060; or (2) the city council is ordered to increase the maximum number of commercial cannabis operation permits issued for retailer (medicalonly or medical/adult-use) commercial cannabis operations by a court of competent jurisdiction as a judicial remedy (e.g., if a court of competent jurisdiction orders the city council to make commercial cannabis operation permits available for non-storefront retailer (delivery only) (including retailers or micro-businesses engaged in delivery) commercial cannabis operations based outside the city to engage in delivery within the city), the city manager shall, as a ministerial duty, within thirty days reinstitute the application procedure under this section, subject to the maximum number of commercial cannabis operation permits authorized and available for issuance pursuant to Section 5.26.060. However, if the city council determines to not issue any permits pursuant to Section 5.26.070(I), then the city manager shall not be required to reinstitute the application procedure provided herein unless directed to do so by a majority of the city council.

H. Additionally, pursuant to Section 5.26.060(B), at any time after the first year following the operative date of this chapter, the city council may, by resolution or minute action, reinstitute the application procedure under this section for the purpose of considering issuance of one additional retailer (medical/adult-use) commercial cannabis operation permits up to the maximum provided in Section 5.26.060.

I. Notwithstanding anything to the contrary in this chapter, the city council is not required or obligated to issue any commercial cannabis operation permits to any applicants pursuant to this chapter if the city council determines that the issuance of such permits would be detrimental to the public health and safety.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to having issued a commercial cannabis operation permit pursuant to this chapter or otherwise approving any retailer commercial cannabis operation. As a condition to the approval of any commercial cannabis operation permit, the applicant shall be required to meet all of the following conditions before they can receive a commercial cannabis operation permit:

A. Execution of an agreement, in a form approved by the city attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold the city, and its officers, officials, employees, representatives, and agents harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of or which are in any way related to the city's issuance of the commercial cannabis operation permit, the city's decision to approve the retailer commercial cannabis operation, the process used by the city in making its decision, or the alleged violation of any federal, state, or local laws by the retailer commercial cannabis operation or any of its owners, managers, officers, employees, or agents.

B. Maintain insurance at coverage limits and with conditions thereon determined necessary and appropriate from time to time by the city attorney.

C. Defend and indemnify the city, its elected and appointed officials, employees and attorneys for all costs and expenses, including, but not limited to, attorneys' fees and court costs, that the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's commercial cannabis operation permit, any matter arising from the operations of said cannabis business and/or related to the city's approval of retailer commercial cannabis operations. The city, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall neither relieve nor increase any of the obligations imposed on the applicant hereunder.

D. Provides written authorization to the operations officers to conduct reasonable unannounced inspections of the location of the commercial cannabis operation at the reasonable discretion of the city, including, but not limited to, inspection of security, inventory, and written records and files pertaining to the commercial cannabis operation, for the purposes of ensuring compliance with this chapter and all laws of the city and the state.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. Subject to this section and Section 5.26.160, the term of each commercial cannabis operation permit shall be indefinite.

B. Upon the one-year anniversary of the date of issuance for each commercial cannabis operation permit and every year thereafter, the city manager shall conduct a performance review of the permittee to assess compliance with the requirements of this chapter and state law. Within thirty days of the conclusion of the annual performance review of the permittee, the city manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance, which shall include deadlines for completion of such items. The city manager may revise such deadlines if he or she determines that additional time is needed to complete such items.

C. The permittee shall pay a fee in an amount to be set by the city council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the city to administer the program created under this chapter.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. A permittee may change the business location specified in a commercial cannabis operation permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under Section 5.26.140. The permittee shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in location applications. The city manager shall process such change in location applications as a ministerial duty within thirty days of receipt.

B. An owner of a commercial cannabis operation permit shall not transfer ownership or control of such commercial cannabis operation permit to another person unless and until the permittee and transferee obtain an amendment to the commercial cannabis operation permit that is approved by the city council upon recommendation from the city manager stating that the permit may be transferred. A permittee may change the ownership specified in a commercial cannabis operation permit upon submission and approval of a change in ownership application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under Section 5.26.140. The permittee shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in ownership applications. The city manager shall process such change in ownership applications as a ministerial duty within thirty days once the city manager reasonably determines that the transferee passed the background check required for owners and meets all other requirements of this chapter.

C. Notwithstanding subsection B, during the first three years following the issuance of a commercial cannabis operation permit, the city manager shall not process any application to change the ownership or control of a commercial cannabis operation permit that results in the permittee altering its ownership composition in a manner that would result in the permittee not being entitled to points it was awarded when the permittee was an applicant pursuant to Section 5.26.070. For example, if a permittee received one hundred points when it was an applicant for providing documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of ninety percent or more have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section), the city manager shall not process or authorize any change in ownership or control of the permittee if the change would result in the permittee being unable to continue to satisfy the aforementioned criteria subsequent to its approval.

D. Notwithstanding subsection B, no commercial cannabis operation permit may be transferred when the city manager has notified the permittee that its commercial cannabis operation permit has been or may be suspended or revoked.

E. Any attempt to transfer a commercial cannabis operation permit either directly or indirectly in violation of this section is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit.

F. An applicant or permittee shall notify the city manager or designee(s) within fifteen calendar days of any change in the information provided in the applicant or permittee's commercial cannabis operation permit application or any change in status of compliance with the provisions of this chapter, including any change in ownership or management.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A commercial cannabis operation shall operate in conformance with the following minimum standards, and such standards shall be deemed to be part of the conditions on the permit for a commercial cannabis operation to ensure that its operation is in compliance with state law and this Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance of the city council, or by the city manager pursuant to Section 5.26.140.

A. State Standards. All state requirements and regulations that govern the operation of a commercial cannabis operation, including, but not limited to, ones related specifically to certain types of commercial cannabis operations, shall apply as minimum requirements and regulations and requirements for commercial cannabis operations within the city of South El Monte, in addition to the requirements and regulations of this chapter and this Code.

B. Security.

1. General. All cannabis, cannabis products and cash present or kept at the premises shall be securely stored against both unauthorized access as well as theft.

2. Security Cameras.

a. Security cameras shall be installed and maintained in good condition, with at least ninety days of digitally recorded documentation in a format approved by the city manager and the police chief.

b. The camera and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present at the site of the commercial cannabis operation.

c. The cameras shall be in continuous use twenty-four hours per day, seven days per week.

d. The recording system must be capable of exporting the recorded video in standard MPEG formats to another common medium approved by the city manager, such as DVD and/or a USB drive.

e. The areas to be covered by the security cameras include, but are not limited to, the storage areas, operation areas, all doors and windows, the parking lot, all exterior sides of the property adjacent to the public rights-of-way, and any other areas as determined by the city manager and police chief.

f. Remote log-in information will be provided to the operations officers to allow them to view live and recorded security camera images remotely at any time.

3. Alarm System. The location of the commercial cannabis operation shall be alarmed with a centrally-monitored fire and burglar alarm system, and monitored by an alarm company properly licensed by the State Department of Consumer Affairs Bureau of Security and Investigative Services in accordance with Section 7590, et seq., of the State Business and Professions Code and whose agents are properly licensed and registered under applicable law.

4. Locked Entrances. All entrances into the building housing a commercial cannabis operation shall be locked from the exterior at all times with entry controlled by employees.

5. Windows. All windows on the building that houses the commercial cannabis operation shall be secured against entry from the outside.

6. No employee shall refuse, impede, obstruct or interfere with an inspection conducted pursuant to the authorizations provided by this chapter.

C. Odors.

1. A commercial cannabis operation shall have an air treatment system that ensures off-site odors shall not result from its activities.

2. This requirement at a minimum means that the commercial cannabis operation shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location of the commercial cannabis operation is not detected outside the building, on adjacent properties or public rights-of-way, or within any other unit located within the same building as the commercial cannabis operation, if the use only occupies a portion of a building.

D. Authorizations.

1. The operations officers shall have the right to enter all areas of the commercial cannabis operation from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter and all laws of the city and state.

2. Recordings made by security cameras required pursuant to this chapter shall be made available to the operations officers upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials.

E. Records.

1. Commercial cannabis operations shall maintain on site the following records either in paper or electronic form:

a. The full name, address, and telephone numbers of the owner and lessee of the property.

b. The name, date of birth, address, and telephone number of each employee of the commercial cannabis operation; the date each was hired; and the nature of each employee's participation in the commercial cannabis operation.

c. Copies of all required state licenses.

d. An inventory record documenting the dates and amounts of cannabis and cannabis products received at the site, the daily amounts of cannabis and cannabis products on the site, and the daily amounts of cannabis and cannabis products leaving the site for any reason, including, but not limited to, being sold, delivered, or distributed.

e. A written accounting of all expenditures, costs, revenues and profits of the commercial cannabis operation, including, but not limited to, cash and in-kind transactions.

f. A copy of all insurance policies related to the operation of the commercial cannabis operation.

g. A copy of the commercial cannabis operation's most recent year's financial statement and tax return.

h. Proof of a valid and current permit issued by the city in accordance with this chapter, and the equivalent state of California license to operate the commercial cannabis operation. Every commercial cannabis operation shall display at all times during business hours the city permit issued pursuant to the provisions of this chapter, and the equivalent state license, in a conspicuous place so that it may be readily seen by all persons entering the location of the commercial cannabis operation.

2. All records required to be maintained by the commercial cannabis operation must be maintained for no less than seven years and are subject to immediate inspection (consistent with requirements pertaining to qualified patient confidentiality pursuant to applicable state and federal law) upon a lawful written request by an operation officer.

3. A commercial cannabis operation shall report any loss, damage, or destruction of these records to the operation officers within twenty-four hours of the loss, damage, or destruction.

F. Site Management.

1. Commercial cannabis operations shall not result in a nuisance or adversely affect the health, welfare, or safety of nearby persons by creating dust, glare, heat, noise, noxious gases, odors, smoke, traffic, vibration, or other impacts, or be hazardous due to use or storage of materials, processes, products or waste. The permittee shall promptly and diligently both prevent as well as eliminate conditions on the site of the commercial cannabis operation that constitute a nuisance.

2. A permittee shall maintain the exterior of the site, including any parking lots under the control of the permittee, free of litter, debris, and trash.

3. The commercial cannabis operation permittee shall properly store and dispose of all waste generated on the site, including chemical and organic waste, in accordance with all applicable laws and regulations.

4. Notwithstanding any provisions of this Code to the contrary, the commercial cannabis operation permittee shall remove all graffiti from the site and parking lots under the control of the commercial cannabis operation permittee within seventy-two hours of its application.

G. State Board of Equalization Seller's Permit Required.

1. Commercial cannabis operations must obtain a seller's permit from the State Board of Equalization as applicable.

2. Such permit shall be displayed in a conspicuous place so that it may be readily seen by all persons entering the location of the commercial cannabis operation.

H. Employees.

1. All employees must submit to fingerprinting and criminal background checks by the city.

a. No employee convicted within the last ten years of a felony substantially related to the qualifications, functions or duties of an employee of a commercial cannabis operation (such as a felony conviction for distribution of controlled substances, money laundering, racketeering, etc.) shall be employed by a commercial cannabis operation, unless such employee has obtained a certificate of rehabilitation (expungement of felony record) under state law or under a similar federal statute or state law where the expungement was granted.

b. At the request of the commercial cannabis operation, the city manager and police chief shall determine the applicability of this section to a potential employee within a reasonable period of time after a written request has been made to the city manager and police chief for such determination.

2. All employees must possess a valid government issued (or equivalent) form of identification containing an identifying photograph of the employee, the name of the employee, the date of birth of the employee, and the residential address of the employee. Color copies of such identification shall be maintained at the location of the commercial cannabis operation. A valid state driver's license will satisfy this requirement.

I. Cannabis Transfer Between Permitted Operations Only. A commercial cannabis operation shall not transfer cannabis or cannabis products to or from another commercial cannabis operation, unless both operations are in possession of all required state and local licenses and permits.

J. Commercial Cannabis Operation Signage.

1. Signs on the premises shall not obstruct the entrance or the video surveillance system. The size, location, and design of any signage must conform to the sign provisions in this Code.

2. Business identification signage shall be limited to that needed for identification only, consisting of a single window sign or wall sign that shall comply with the appropriate sign requirements within the applicable zoning district.

K. Prohibited Personal Activities.

1. Cannabis Use. No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within twenty feet of, the site of the commercial cannabis operation.

2. Alcohol Use. No person shall possess, consume, or store any alcoholic beverage on the site of the commercial cannabis operation.

L. No Minors. No minor shall be an employee of, or participate in, a commercial cannabis operation in any capacity, including, but not limited to, as a manager, employee, contractor, adviser, or volunteer.

M. Exterior Lighting. The exterior of the premises upon which the commercial cannabis operation is operated shall be equipped with and, at all times between sunset and sunrise, shall remain illuminated with fixtures of sufficient intensity and number to illuminate every portion of the property with an illumination level of not less than one foot-candle as measured at the ground level, including, but not limited to, landscaped areas, parking lots, driveways, walkways, entry areas, and refuse storage areas.

N. Building Design. A permittee must maintain the design of the buildings on the site in accordance with the plans that are approved by the city pursuant to this chapter and otherwise approved by the city. No permittee shall modify the buildings on the site contrary to the approved plans, without the approval of the city manager.

O. Nuisance. A permittee shall take all reasonable steps to discourage and correct conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if related to the members of the subject commercial cannabis operation.

1. "Reasonable steps" shall include immediately calling the police department upon observation of the activity, and requesting that those engaging in activities that constitute a nuisance or are otherwise illegal to cease those activities, unless personal safety would be threatened in making the request.

2. "Nuisance" includes, but is not limited to, disturbances of peace, open public consumption of cannabis, alcohol or controlled substances, excessive pedestrian or vehicular traffic, including the formation of any pedestrian lines outside the building, illegal drug activity, harassment of those passing by, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or law enforcement detentions and arrests.

P. Upon and after receiving possession of a commercial cannabis operation permit as provided for in this chapter, a permittee shall:

1. Maintain continuing compliance with criminal background check requirements of this chapter by ensuring that:

a. Upon the hiring, association or retention of an employee by the commercial cannabis operation, the requirements of subsection H are immediately met for such employee by provision of appropriate documentation to the city manager; and

b. The city manager and police chief are immediately informed in writing of any felony conviction as described in subsection H for any current employee.

2. Maintain continuing compliance with all applicable insurance requirements, including, but not limited to, those imposed by the city and this chapter.

Q. Workforce Plan. A permittee shall implement a workforce plan that includes at least the following provisions:

1. Commitment for thirty percent of employees to be local hires; this local hiring requirement is satisfied when a permittee shows that it has either hired or made a good faith effort to hire bona fide residents of the city or persons that may establish residency after initial employment with the permittee;

2. Commitment to offer apprenticeships and/or compensation for continuing education in the field of commercial cannabis operations; and

3. Paying a living wage to employees. "Living wage" means compensation equivalent to twenty dollars per hour inclusive of benefits but excluding tips.

R. Exemption. The regulations contained in this chapter shall not apply to a commercial cannabis operation engaged in the following uses, as long as such use complies strictly with applicable law, including this Code, regulating such use and the location of such use, including, but not limited to, Section 11362.5 of the State Health and Safety Code and Section 11362.71 et seq., of the State Health and Safety Code: A clinic licensed pursuant to Chapter 1 of Division 2 of the State Health and Safety Code; a health care facility licensed pursuant to Chapter 2 of Division 2 of the State Health and Safety Code; a residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the State Health and Safety Code; a residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the State Health and Safety Code; and a residential hospice or a home health agency licensed pursuant to Chapter 8 of Division 2 of the State Health and Safety Code.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A retailer commercial cannabis operation shall operate in conformance with both Section 5.26.110, as well as the following minimum standards, and such standards shall be deemed to be part of the conditions of the commercial cannabis operation permit for a retailer commercial cannabis operation to ensure that its operation is in compliance with state law and this Code, and to mitigate any potential adverse impacts of the commercial cannabis operation on the public health, safety or welfare.

Additional minimum standards may be adopted from time to time either by resolution or ordinance from the city council, or by the city manager pursuant to Section 5.26.140.

A. City Permit and State License. No person shall engage in retailer commercial cannabis operations without both a current and valid commercial cannabis operation permit and a current and valid equivalent state license as provided for under Section 26200 of the State Business and Professions Code, and as may be amended. Retailer (medical-only) commercial cannabis operations shall only sell, dispense, or provide medical cannabis or medical cannabis products to a qualified patient with a written physician's recommendation, a person with an identification card, or a primary caregiver with written documentation attesting to lawful status as a primary caregiver.

B. State Standards. All state requirements and regulations that govern retailer commercial cannabis operations, including, but not limited to, the regulations promulgated by the State Department of Cannabis Control, and as may be amended, shall apply as minimum requirements and regulations and requirements for retailer commercial cannabis operations within the city, in addition to the requirements and regulations of this chapter and this Code.

C. Location and Design Requirements. Pursuant to the authority delegated by the state to the city under Section 26054(b) of the State Business and Professions Code and overriding the location and design requirements contained in Section 26054(b) of the State Business and Professions Code, retailer commercial cannabis operations in the city shall be subject to the following location and design requirements:

1. Retailer commercial cannabis operations shall be a permitted use subject to this chapter on property: (a) located more than one thousand feet any retailer commercial cannabis operation permitted under this chapter, alcohol or drug treatment facility, day care center, religious institution, school, youth center, park or residentially zoned property; (b) located more than 350 feet from the city's jurisdictional boundary; and (c) zoned M (manufacturing zone), C (commercial zone) or C-M (commercial-manufacturing zone) including any overlay zone districts covering the M (manufacturing zone), C (commercial zone) or C-M (commercial-manufacturing zone).

2. The distances specified in subsection C shall be the horizontal distance measured in a straight line from the parcel line of the sensitive use to the closest parcel line of the lot on which the cannabis retailer is to be located without regard to intervening structures. The one thousand foot distance specified in subsection C may be reduced to as little as nine hundred feet by administrative regulation pursuant to Section 5.26.140 if necessary to allow for issuance of the number of commercial cannabis operation permits provided by this chapter.

3. Each retailer commercial cannabis operation shall:

a. Be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties. Odors from the cannabis retailer shall not be detectable from outside the premises and adequate odor control technology shall be utilized;

b. Be provided with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for the intended purpose; and

c. Provide and maintain a neighborhood compatibility plan so the city manager or designee(s) may find that the cannabis retailer and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance.

D. Customers.

1. Prior to dispensing medical cannabis or medical cannabis products to a qualified patient, a retailer commercial cannabis operation shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen years and obtain verification from the recommending physician that the person requesting medical cannabis or medical cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation, or identification card, as described in Section 11362.71 et seq., of the State Health and Safety Code, as may be amended from time to time, on site for period of not less than seven years.

2. Prior to dispensing cannabis or cannabis products to an adult-use customer, a retailer (medical/adult-use) commercial cannabis operation shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one years.

E. Opaque Packaging. All cannabis or cannabis products sold to a customer shall be prohibited from leaving the site unless placed in opaque packaging which conceals the nature of the product from human vision.

F. Dispensing and Storage Areas. Entrance to the retailer sales floor and any storage areas shall be locked at all times, and under the control of employees.

G. Interior Lighting. The premises within which the commercial cannabis operation is operated shall be equipped with and, at all times during which is open to the public, shall remain illuminated with over-head lighting fixtures of sufficient intensity to illuminate every place to which members of the public or portions thereof are permitted access with an illumination of not less than two foot-candles as measured at the floor level.

H. Signs. A retailer commercial cannabis operation shall notify customers (verbally or by written agreement) and by posting a notice or notices conspicuously at least fifteen-point type within permitted premises that state as follows:

1. "The sale or diversion of cannabis or cannabis products without a license issued by persons entering the site, the city of South El Monte is a violation of state law and the South El Monte Municipal Code."

2. "Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest."

3. "Customers must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance."

4. "WARNING: The use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate heavy machinery."

5. "CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis-derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer and reproductive harm."

I. No Recommendations On Site. A retailer commercial cannabis operation shall not have a physician or any person licensed to recommend medical cannabis for medical use at the location of the retailer commercial cannabis operation to provide a recommendation or physician's recommendation, for the use of medical cannabis.

J. Sanitation. A permittee shall establish and implement written procedures that maintain the highest industry standards of sanitation and cleanliness for the operation so as to ensure cannabis and cannabis products sold to the public are free of harmful contaminants.

K. Training. A permittee shall establish and implement written procedures that provide for the highest industry standards of training for employees.

L. Prohibited Activities. No cannabis cultivation, testing or manufacturing shall occur within the premises of the retailer operation.

M. No Alcohol. Retailer commercial cannabis operations shall not hold or maintain a license from the State Department of Alcoholic Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages.

N. No Lounge or Café. Retailer commercial cannabis operations shall not operate as a lounge, café or restaurant serving food or drinks for consumption on site. There shall be no seating area, tables, couches, or chairs for the gathering or congregating of members.

O. Age Restriction. Minors, except qualified patients or primary caregivers over the age of eighteen years old as verified customers, are prohibited from entering the location of the retailer cannabis operation.

P. Public Information. The permittee shall make available to customers a list of the rules and regulations governing medical cannabis use and consumption within the city and recommendations on sensible medical cannabis etiquette.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023; Ord. 1287, 2/17/2026)

A. Delivery shall comply with state law at all times.

B. Security plans developed pursuant to this chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.

C. A commercial cannabis operation engaged in delivery shall facilitate the delivery of cannabis or cannabis products with a technology platform owned by or licensed to the delivery-only commercial cannabis operation engaged in delivery that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the commercial cannabis operation engaged in delivery and customer:

1. The identity of the individual dispensing cannabis or cannabis products on behalf of the commercial cannabis operation engaged in delivery;

2. The identity of the customer receiving cannabis or cannabis products from the commercial cannabis operation engaged in delivery;

3. The type and quantity of cannabis or cannabis products dispensed and received;

4. The gross receipts charged by the commercial cannabis operation engaged in delivery and received by the individual dispensing cannabis or cannabis products on behalf of the commercial cannabis operation engaged in delivery for the cannabis or cannabis products dispensed and received; and

5. The location or address where the sale or retail sale took place or closed.

D. A commercial cannabis operation engaged in delivery shall maintain a database and provide a list of the individuals and vehicles authorized to conduct delivery, and a copy of the valid state driver's license issued to the driver of any such vehicle on behalf of the commercial cannabis operation engaged in delivery to the city manager.

E. Individuals making deliveries of cannabis or cannabis products on behalf of the commercial cannabis operation engaged in delivery shall maintain a physical copy of the delivery request (and invoice) and shall make it available upon the request of agents or employees of the city requesting documentation.

F. During delivery, a copy of the commercial cannabis operation engaged in delivery's commercial cannabis operation permit and state license shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the city requesting documentation.

G. A commercial cannabis operation engaged in delivery shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is: (1) insured at or above the legal requirement in the state; (2) capable of securing (locking) the cannabis or cannabis products during transportation; (3) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (4) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a commercial cannabis operation engaged in delivery.

H. A commercial cannabis operation engaged in delivery shall facilitate deliveries with a technology platform owned by or licensed to the commercial cannabis operation engaged in delivery that uses global positioning system technology to track, and database technology to record and store the following information:

1. The time that the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery departed its premises.

2. The time that the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery completed delivery to the customer.

3. The time that the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery returned to its premises.

4. The route the individual conducting delivery on behalf of the commercial cannabis operation engaged in delivery traveled between departing and returning to its premises to conduct delivery.

5. For each individual delivery transaction, the identity of the individual conducting deliveries on behalf of the commercial cannabis operation engaged in delivery.

6. For each individual delivery transaction, the vehicle used to conduct delivery on behalf of the commercial cannabis operation engaged in delivery.

7. For each individual delivery transaction, the identity of the customer receiving cannabis or cannabis products from the commercial cannabis operation engaged in delivery.

8. For each individual delivery transaction, the type and quantity of cannabis or cannabis products dispensed and received.

9. For each individual delivery transaction, the gross receipts charged by the commercial cannabis operation engaged in delivery and received by the individual conducting deliveries on behalf of the commercial cannabis operation engaged in delivery for the cannabis or cannabis products dispensed and received.

I. The individual making deliveries on behalf of the commercial cannabis operation engaged in delivery shall personally verify for each individual delivery transaction the identity of the customer receiving cannabis or cannabis products from the commercial cannabis operation engaged in delivery and: (1) for medical cannabis or medical cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Section 11362.71 et seq., of the State Health and Safety Code, as may be amended from time to time, on site for period of not less than seven years; or (2) for cannabis or cannabis products to an adult-use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one years.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

The applicant may propose entering into a community benefit agreement in an amount and by terms set by city council resolution with the city setting forth the terms and conditions under which the facility will operate that is in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety, and welfare of the city and its residents and visitors.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. Consistently with stated requirements of this chapter (and in particular not to repeal or constructively repeal this chapter), in addition to any regulations adopted under state law, the city manager is authorized to establish any additional rules, regulations, and standards governing the issuance or denial of commercial cannabis operation permits, the ongoing operation of commercial cannabis operations and the city's oversight thereof, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

B. Such regulations shall be approved by resolution of the city council published on the city's website.

C. Regulations promulgated, by the city manager, shall become effective upon date of publication on the city's website or posting at the location for the city council's meeting agendas. Commercial cannabis operations shall be required to comply with all state and local laws and regulations, including, but not limited to, any rules, regulations or standards adopted by the city manager.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

An application fee set by resolution of the city council shall be required for formal processing of every application made under this chapter. The city council is further authorized to pass resolutions or ordinances to recover any and all fees and costs incurred by the administration and implementation of this chapter through an appropriate fee recovery mechanism to be imposed upon commercial cannabis operations.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. The city manager is authorized to suspend and/or revoke a commercial cannabis operation permit issued pursuant to this chapter upon the determination through written findings of a failure to comply with any provision of this chapter, any commercial cannabis operation permit condition, or any agreement or covenant required or made pursuant to this chapter.

B. Notwithstanding subsection A, the city manager may suspend or revoke a commercial cannabis operation permit if any of the following occur:

1. The equivalent state license has been suspended or revoked by the state; or

2. Operations cease for more than one hundred eighty consecutive or cumulative days in any oneyear period; or

3. Ownership is changed or transferred without complying with Section 5.26.100; or

4. The commercial cannabis operation fails to maintain required security camera recordings; or

5. The commercial cannabis operation fails to allow inspection of the security recordings, the activity logs, the records, or of the site by operations officers pursuant to this chapter; or

6. The commercial cannabis operation fails to timely make the corrections required pursuant to Section 5.26.090; or

7. The commercial cannabis operation fails to pay any fees required by this chapter.

C. Conditions (if any) of suspension or revocation are at the reasonable discretion of the city manager and may include, but are not limited to, a prohibition on all owners, managers and employees of the suspended or revoked commercial cannabis operation from operating within the city for a period of time set forth in writing and/or a requirement (when operations may resume, if at all, pursuant to the city manager's reasonable determination) for the holder of the suspended or revoked commercial cannabis operation permit to resubmit an application for a commercial cannabis operation permit pursuant to the requirements of this chapter.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

Any decision regarding the city manager's suspension or revocation of a commercial cannabis operation permit pursuant to Section 5.26.160 may be appealed to the city council by a permittee or interested party as follows:

A. If the appellant wishes to appeal a decision to the city council, the appellant must file a written appeal with the city clerk within ten calendar days of the decision. The written appeal shall specify the person making the appeal, the decision appealed from, state the reasons for the appeal, and include any evidence in support of the appeal which the applicant seeks to be considered by the city council.

B. Notice of the time and place of an appeal hearing shall be providing to the appellant within thirty days of receipt by the city clerk of the written appeal.

C. The appeal hearing shall be held within sixty days of the filing of the written appeal with the city clerk, unless the sixty-day time limit is waived by the appellant, or unless the city council continues the appeal hearing date for good cause and upon written notification to the appellant.

D. The city council shall review the facts of the matter, written documents submitted for review, the basis for making the decision which is under appeal, and then determine whether the appealed decision should be reversed or affirmed. The determination made shall be in writing, shall set forth the reasons for the determination, and shall be final.

E. The provisions of Section 1094.6 of the Code of Civil Procedure set forth the procedure for judicial review of any final determination. Parties seeking such judicial review shall file such action within ninety days of a determination being made final.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. Any violation of the provisions of this chapter is punishable as a misdemeanor or an infraction, at the discretion of the city attorney, pursuant to Chapters 1.14 and 1.16 of this Code, except for as preempted by state law and any violation of the provisions of this chapter is subject to administrative citation, at the reasonable discretion of the city, pursuant to Chapters 1.14 and 1.16 of this Code.

B. Public Nuisance Abatement.

1. Any commercial cannabis operation that is conducted in violation of any provision of this chapter is hereby declared to constitute a public nuisance and, as such, may be abated or enjoined from further operation, in accordance with the procedures set forth in Chapter 8.36 of this Code.

2. All costs to abate such public nuisance, including attorneys' fees and court costs, shall be paid by the person causing the nuisance, including the commercial cannabis operation and the property owner where the nuisance is occurring.

C. The remedies described in this section are not mutually exclusive. Pursuit of any one remedy shall not preclude city from availing itself of any or all available administrative, civil, or criminal remedies, at law or equity.

D. Any violation of the provisions of this chapter shall constitute a separate offense for each and every day during which such violation is committed or continued.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

Any notice required by this chapter is deemed issued and served upon the earliest date that either: the notice is deposited in the United States mail, postage pre-paid, addressed to the most recent mailing address provided to the city pursuant to the requirements of this chapter; or, the date upon which personal service of the notice is provided to a responsible party.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. Any commercial cannabis operation in violation of this chapter, or any other applicable state law is expressly prohibited.

B. It is unlawful for any commercial cannabis operation in the city, or any agent, employee or representative of such commercial cannabis operation, to permit any breach of peace or any disturbance of public order or decorum by any tumultuous, riotous or disorderly conduct at the site of the commercial cannabis operation.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

No use which purports to have engaged in commercial cannabis operations of any nature prior to the enactment of this chapter shall be deemed to have been a legally established use under the provisions of this Code, or any other city ordinance, rule or regulation, and such use shall not be entitled to claim legal nonconforming status.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

A. To the extent that the following activities are permitted by state law, nothing in this chapter shall prohibit a person twenty-one years of age or older from:

1. Possessing, processing, purchasing, transporting, obtaining or giving away to persons twenty-one years of age or older, without compensation whatsoever, not more than twenty-eight and one-half grams of cannabis not in the form of concentrated cannabis;

2. Possessing, processing, purchasing, transporting, obtaining or giving away to persons twenty-one years of age or older, without compensation whatsoever, up to eight grams of cannabis in the form of concentrated cannabis;

3. Possessing, transporting, purchasing, obtaining, using, manufacturing, or giving away cannabis accessories to persons twenty-one years of age or older without compensation whatsoever; or

4. Engaging in the indoor cultivation of six or fewer live cannabis plants within a single private residence or inside an accessory structure located upon the grounds of a private residence that is fully enclosed and secured, to the extent such cultivation is authorized by Sections 11362.1 and 11362.2, of the State Health and Safety Code, as may be amended from time to time.

B. This chapter shall also not prohibit any commercial cannabis operations that the city is required by law to permit within its jurisdiction pursuant to state law.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

This chapter shall be operative ten days after the date that the city council declares that a majority of the city's voters voting at the November 8, 2022, election have voted in favor of this chapter at such election.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this chapter is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. The people of the city of South El Monte hereby declare that they would have adopted this chapter and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

The city council has the right and authority to amend this chapter, with the exception of Section 5.26.060 (which may only be amended: (i) if ordered to do so by a court of competent jurisdiction as a judicial remedy; or (ii) by a vote of the people of the city), to further its purposes and intent (including, but not limited to, amendment for more efficient administration as determined by the city council), in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution, pursuant to Elections Code Section 9217.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)

Notwithstanding any other provision of this chapter, prior to participating in any decision relating to a cannabis business, each city councilmember shall do all of the following

A. Disclose on the record any financial interest in the cannabis business that is subject to the decision.

B. Disclose on the record any campaign contributions and benefits or gifts received from the cannabis business that is subject to the decision.

C. Disclose on the record any ex parte communications that the city councilmember may have had with a cannabis business that is the subject of the decision.

D. Each city councilmember shall warrant and represent, on the record and in a form approved by the city council, that they have complied with these requirements and all applicable law.

If it is later determined that a city councilmember has not complied with the above requirements or if it is determined that a city councilmember has violated applicable law, then the city councilmember is disqualified from all decisions relating to the cannabis business subject to the decision. The requirements of this Section 5.26.260 shall be in addition to any applicable law, including, without limitation, the California Political Reform Act and the related regulations of the Fair Political Practices Commission.

(Ord. 1260 §2, 2022; Ord. 1268 §3, 2023)