Vista Municipal Code Title 4 Reserved

Vista 3/ 25/ 11)

Vista Municipal Code

Chapter 5.04

Business Licenses Generally

Article I 5.04.000A General Provisions

Section 5.95.010 Purpose and Intent

The purpose of this chapter is to establish a comprehensive set of regulations with

attendant regulatory permits applicable to the operation of commercial adult use cannabis businesses. The regulations are intended to implement the provisions of the Medical and Adult Use Cannabis Regulation and Safety Act ( hereinafter “ MAUCRSA”) to provide access to adult use cannabis for persons over the age of 21 as authorized by the Control, Regulate and Tax Adult Use Marijuana Act (“ AUMA” or “ Proposition 64” passed by California voters in 2016). Further, it is the intent of this chapter to regulate the sale of adult- use cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City; to impose regulations on the use of land; and to enforce rules and regulations consistent with state law. Ord 2021-8, Added, 6/22/21)

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of the MAUCRSA, and any and all state legislation and/or regulations regarding the same, the City is authorized to adopt laws that establish standards, requirements and regulations for the licensing of commercial adult use cannabis business within the limits of its municipal

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boundaries. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City to all commercial adult use cannabis business.

This chapter is not intended to permit activities that are otherwise illegal under state or local law. This chapter is not intended to conflict with federal or state law. Ord 2021-8, Added, 6/22/21)

This chapter requires all adult use commercial cannabis operators to obtain and hold a valid license to operate within the City. The provisions of this chapter are in addition to any other licenses, licenses and approvals which may be required, now or in the future, to conduct business in the City and the State of California. Ord 2021-8, Added, 6/22/21)

It shall be unlawful to own, establish, operate, use, or permit the establishment or operation of an adult use cannabis dispensary, or to participate as an employee, contractor, agent, volunteer, or in any manner or capacity other than as provided in this chapter. The general prohibition contained in this section shall include renting, leasing, or otherwise permitting an adult use cannabis business to occupy or use a location, vehicle, or other mode of transportation.

It shall be the sole responsibility of the owners and the operators of all adult use

commercial cannabis businesses to ensure that the adult use commercial cannabis business they own and/or operate is, at all times, operating in a manner compliant with all current and future applicable federal, state and local laws, regulations, licensing requirements, certification requirements, and/or any additional operating procedures and/or requirements which may be imposed as conditions of approval of the commercial adult use cannabis business license.

Every adult use cannabis business shall submit to periodic compliance checks by the

City in order for the City to ensure all adult use cannabis businesses have complied and are complying with all applicable federal, state and local laws, regulations, licensing requirements and certification requirements. The City’s compliance checks will be conducted during the normal business hours of an adult use cannabis business. The City’s compliance checks may be conducted with or without advance notice to an adult use cannabis business. Ord 2021-8, Added, 6/22/21)

The following definitions shall apply to this chapter unless the context clearly denotes otherwise.

a. “ Adult Use Cannabis” or “ Adult Use Cannabis Product” means cannabis or

cannabis products for individuals 21 years of age and over without the need for a physician’ s recommendation.

b. “ Adult Use Cannabis Business” means a location where cannabis is provided to

individuals who are 21 years or older.

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c. “ Adult Use Cannabis Business License” means a license issued to an adult use

cannabis business pursuant to the provisions of Chapter 5.95.

d. “ Applicant” means a person or legal entity who is required to file an application

for a license under this chapter.

e. “ Bureau” means the Bureau of Cannabis Control within the Department of

Consumer Affairs of the State of California.

f. “ Business” means all activities engaged in or caused to be engaged in within the

City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to that employee' s employer.

g. “ Business Licensing Division” as used in this chapter is defined to mean the

department within the City that reviews, issues, and manages business licenses.

h. “ Cannabis” means, except as specified herein, all parts of the 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. For the purpose of this Chapter, Cannabis” does not mean “ industrial hemp” as defined by Section 11018. 5 of the California Health and Safety Code.

i. “ 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 division. Cannabis Concentrate does not include any product intended for oral ingestion by the final consumer. A Cannabis Concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code.

j. “ Cannabis Dispensing Room” means the location in an adult use cannabis

business where cannabis is stored and eventually provided to customers as opposed to a lobby area within the business.

k. “ City” means the City of Vista.

l. “ City Manager” means the City Manager of the City or the City Manager’ s

designee.

m. “ Commercial adult use cannabis business license” means a regulatory license

issued by the City pursuant to Chapter 5.95 to an adult use commercial cannabis business and is required before any adult use commercial cannabis business may be conducted in the City.

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n. “ Concentrated Cannabis” shall have the same definition as given such term in

California Health and Safety Code§ 11006. 5, as may be amended, and which defines Concentrated Cannabis” as the separated resin, whether crude or purified, obtained from cannabis.

o. “ Dispensing” means any activity involving the retail sale of cannabis or cannabis

products from a retailer.

p. “ Edible” shall have the same definition as set forth in Health and Safety Code

Section 113781, until such time that MMRSA or the Department of Public Health sets forth a new definition.

q. “ Employee” includes any person who renders any service, with or without

compensation, to an adult use cannabis business or any person performing some or all of the functions of an employee of an adult use cannabis business. The term “Employee” shall include part-time, full-time, temporary, and permanent employees.

r. “ Licensee” means any person holding a license under this chapter.

s. “ Limited- access area” means an area in which cannabis goods are stored or held

and is only accessible to a licensee, its employees and/or authorized individuals.

t. “ 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.

u. “ Live scan” means a system for inkless electronic fingerprinting and the

automated background check developed by the California Department of Justice ( DOJ) which 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.

v. “ Marijuana” has the same definition as set forth in Health and Safety Code

section 11018 and includes cannabis.

w. “ Reasonable Compensation” means compensation commensurate with wages

and benefits paid to officers and employees of other not-for-profit organizations who have similar job descriptions and duties, required level of education and experience, prior individual earnings history, and number of hours worked, including without limitation, the proportionate cost of materials, time, experience, and other expenditures reasonably related to the cultivation, transportation, treatment, and storage of cannabis. Ord 2021-8, Added, 6/22/21)

In accordance with section 5.95.070, a validly licensed medical cannabis dispensary licensee may, in the same physical space as the medical cannabis dispensary, co-locate a retail commercial adult use cannabis business. Other than co-location with a medical cannabis dispensary by the same license holder, per section 5.95.070, all other retail commercial adult use cannabis businesses are prohibited within the City. Ord 2021-8, Added, 6/22/21)

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Cannabis Businesses

An adult use cannabis business can only be co-located at and within the same physical

premises as a medical cannabis dispensary that has been approved as such by the City pursuant to Chapter 5.94. A City issued licensed is required to operate a co-located adult use cannabis business.

An adult cannabis business co-location application shall be accompanied by a non-

refundable application fee established by resolution of the City Council. Prior to acting on the application, the City Manager shall conduct environmental review pursuant to the California Environmental Quality Act. The City Manager may act on the application if any of the following occurs: ( 1) the City determines the project is exempt from environmental review; ( 2) the City determines there is no substantial evidence that the project, as proposed or as mitigated, may have a significant impact on the environment; or ( 3) the City adopts a statement of overriding considerations for the project. In such cases, the City Manager shall issue a co-location commercial adult use cannabis business license after determining that a medical cannabis dispensary is in good standing with all local, state, and federal laws and regulations, and that the co-location applicant demonstrates compliance with all the standards and provisions of Chapter 5.95 and any additional performance and operating standards promulgated by the City Manager to carry out the purposes of Chapter 5.95. The City Manager shall further condition the license on compliance with any mitigation measures resulting from the environmental review.

Upon issuance by the City of a co-location commercial adult use cannabis business

license, a medical cannabis dispensary validly licensed pursuant to Chapter 5.94 may conduct a commercial adult use cannabis business at the same physical site and as part of the medical cannabis operation currently operating at said location.

A co-location facility shall maintain both a City and state license for medical cannabis

dispensary at all times the facility is in operation. Failure to maintain a City and/or state medical cannabis licenses shall result in the automatic revocation of the companion commercial adult use cannabis business license. The commercial adult use cannabis business license shall be deemed suspended or revoked contemporaneously with the suspension or revocation of either the medical cannabis licensee’ s City license or state license.

The authorization to conduct both a medical cannabis dispensary and a co-located adult

use cannabis business does not relieve the licensee from fulfilling all its applicable tax obligations, including paying the separate and distinct tax rate for sales of products related to medical cannabis and the separate and distinct tax rate for sales of products related to adult use cannabis. Ord 2021-8, Added, 6/22/21)

A commercial adult use cannabis business license, issued pursuant to this Chapter, shall expire concurrently with the medical cannabis dispensary license issued to the medical cannabis dispensary co-located at the adult use cannabis business or twenty-four (24) months

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after the date of its issuance, whichever is shorter. Commercial adult use cannabis business licenses may be renewed as provided in section 5.95.110. Ord 2021-8, Added, 6/22/21)

A commercial adult use cannabis business licenses may be revoked if any owner or operator of said business is convicted of a federal or state felony and/or is in violation of any local rule, ordinance, regulation, or operational procedure, and/or standards promulgated or adopted pursuant to this chapter. For purposes of this provision, a conviction is complete upon entry of judgment after a finding of guilt, upon entry of a plea of guilty, upon entry of a plea of nolo contendere or “ no contest,” and regardless of the pendency of any appeal, or expungement pursuant to California Penal Code Sections 1203.4, 1203.4a or 1203.41. Ord 2021-8, Added, 6/22/21)

A suspension of any license issued to an adult cannabis business by the State of California, or by any of its departments or divisions, shall immediately and automatically suspend the privilege of said adult use cannabis business to operate within the City as of the same date and time the state license was suspended. Said adult use cannabis business’ ability to sell and/or distribute adult use cannabis products shall remain suspended unless and until the State of California, or its respective department or division, reinstates or reissues the suspended state license.

Should the State of California, or any of its departments or divisions, revoke or terminate

the state license of an adult use cannabis business, such revocation or termination shall automatically terminate the adult use cannabis business license issued by the City to said business as of the same date and time the state license was revoked and/or terminated. ( Ord 2021-8, Added, 6/22/21)

An application for renewal of a commercial adult-use cannabis business license shall be filed at least sixty ( 60) calendar days prior to the expiration date of the current license. The renewal application shall contain all the information required for a new application for license under this chapter. The applicant shall pay a fee in an amount to be set by the City Council designed to cover the costs of processing the renewal license application, together with any costs incurred by the City to administer and monitor the program. The City Council, from time to time, may modify this fee in order to ensure that the City is recovering all its costs.

An application for renewal of a commercial adult use cannabis business license shall be

rejected if any of the following exists:

1. The application is filed less than sixty ( 60) days before the expiration of the term

of applicant’ s current license.

2. The commercial adult use cannabis business license is suspended or revoked at

the time the application is filed.

3. The commercial adult-use cannabis business has violated any of the

requirements of Chapter 5.95 or of any regulations adopted pursuant to Chapter 5.95.

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4. The licensee fails or is unable to renew its required State of California cannabis

license by the date the renewal would need to take effect.

5. The licensee is not or will not be operating a medical cannabis dispensary at the

location listed in the application.

The City Manager is authorized to make all decisions concerning any application for renewal of a license, including the decision to approve or deny the application. In making decisions on applications, the City Manager is authorized to impose additional conditions upon renewal of a license if the City Manager deems it necessary to ensure compliance with any laws, regulations and/or to preserve the public health, safety and/or welfare. Appeals from the decision of the City Manager shall be handled pursuant to section 5.95.190.

If a renewal application is rejected, the then current commercial adult use cannabis business license shall no longer be effective as of the end of its then current term and all related commercial adult use cannabis business activity must cease at the location identified in the license. An applicant that is denied a renewal may file a new application pursuant to Chapter 5.95 no sooner than one (1) year from the date of the rejection. Ord 2021-8, Added, 6/22/21)

An adult use cannabis business may only operate at the location specified on its license. An adult use cannabis business shall not change or expand the location it operates from without the City’s express written approval. If an adult use cannabis business wishes to change or expand the location it operates its adult use cannabis from, it shall file an application with the City. The applicant shall also pay a fee in an amount to be set by the City Council designed to cover the costs of processing the change of location application. The City Council, from time to time, may modify this fee to ensure that the City is recovering all said costs.

The City Manager is authorized to make all decisions concerning any application for change or expansion of an existing licensee’ s location, including the decision to approve or deny an application. In making decisions on applications, the City Manager is authorized to impose additional conditions upon the approval of any application if the City Manager deems it necessary to ensure compliance with any laws, regulations and/or to preserve the public health, safety and/or welfare. Appeals from the decision of the City Manager shall be handled pursuant to section 5.95.190. Ord 2021-8, Added, 6/22/21)

All applicants for an adult use cannabis business license and adult use cannabis business licensees shall have an ongoing and continuing obligation to update the City of any changes to information contained in their then pending or already approved adult use cannabis business license application. Applicants and licensees must update the City of any changes to their information within seven ( 7) calendar days of the event that causes the change to said information. Ord 2021-8, Added, 6/22/21)

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An adult use cannabis business license is transferable only if: ( 1) the holder of the co- located medical cannabis dispensary license contemporaneously applies to transfer the co- located medical cannabis license pursuant to the provisions of Chapter 5.94, ( 2) the proposed transferee identified in the medical cannabis dispensary transfer application and the adult use cannabis transfer application is the same individual/ entity in both applications, and, ( 3) the proposed transferee successfully completes all of the requirements that a new applicant would otherwise need to meet under both Chapter 5.94 for the medical cannabis dispensary license and Chapter 5.95 for the adult use cannabis business license. Ord 2021-8, Added, 6/22/21)

An adult use cannabis business shall operate in conformance with the following minimum standards, and such standards shall be deemed to be part of the conditions of approval of a license for an adult use cannabis business so as to ensure that its operation is in compliance with all relevant local and state laws and regulations, and to mitigate any potential adverse impacts of the adult use cannabis business on the public health, safety or welfare.

a. Security

1. At least one (1) security guard, armed or unarmed, who is licensed by the

State of California shall be present at the location of the adult use cannabis business during all business hours. This security guard may be the same security guard providing security for the co-located medical cannabis dispensary. The security guard shall only be engaged in activities related to providing security for the cannabis business, except on an incidental basis. Each security guard shall possess a “Security Guard Card” at all times.

2. Security cameras shall be installed and maintained in good condition and

used in an on-going manner with at least ninety ( 90) days of digitally recorded documentation.

3. The location of the adult use cannabis business shall be alarmed with a

centrally monitored fire and burglar alarm system and monitored by an alarm company.

b. Records

Adult use cannabis businesses shall continuously maintain records reflecting:

1. The full name, address, and telephone number( s) of the owner and/or

lessee of the property.

2. The full name, address, and telephone number( s) of all employees.

3. The results of annual live scans of all employees.

4. A copy of the adult use cannabis business’ s commercial general liability

insurance policy and all other insurance policies related to the operation of the adult use cannabis business.

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5. Proof of a valid and current license issued by the City in accordance with

this chapter.

c. Employees

An adult use cannabis business shall not have any employees, operators, or volunteers

who have suffered a conviction for a felony offense having occurred within the past four ( 4) years. This requirement shall be confirmed through the results of a live scan being conducted annually by the adult use cannabis business on all employees, the written results of such live scans being maintained at the location of the adult use cannabis business.

d. Volume

An adult use cannabis business may dispense, store or transport cannabis in aggregate

amounts that is reasonably tied to its customers’ present needs. To that end, an adult use cannabis business shall ensure compliance with state law limits on the amount of dried cannabis and amount of cannabis plants allowed per person, if any.

e. Notification

The following signs in measurements of not less than eight ( 8) by ten ( 10) inches shall

be clearly and legibly posted in a conspicuous location inside the medical cannabis business where they will be visible to all visitors in the normal course of a transaction, stating:

1. “ Loitering on and around this cannabis business is prohibited by

California Penal Code § 647(e) and patrons must immediately leave the site and not consume or use cannabis in the vicinity of the business, on the property or in the parking lot.”

2. “ Patrons may be subject to prosecution under federal marijuana laws.”

3. “ Use of marijuana may impair a person’ s ability to drive a motor vehicle or

operate machinery.”

4. “ Smoking, ingesting or consuming marijuana anywhere on the premises

is strictly prohibited.”

5. “ All cannabis products have been tested by an independent testing

agency for content, mold, pesticides, and other harmful contaminants.”

f. No Alcohol

Any adult use cannabis business shall not hold or maintain a license from the State

Department of Alcoholic Beverage Control to sell alcoholic beverages or to operate a business that sells alcoholic beverages on site. Additionally, there shall be no alcohol consumption on site.

g. Quality Control

All cannabis products shall be analyzed in representative samples of all strains that are

to sold to the public. The representative samples shall be analyzed by an independent laboratory, holding a state license for testing ( if and when such is available) for harmful

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pesticides, molds, and other contaminants. Any cannabis, from which the representative sample tested positive for a harmful pesticide or other contaminant at a level that exceeds the local, state or federal regulatory or statutory standards, shall be destroyed forthwith and not sold or in any way distributed.

h. Labeling

Any cannabis sold to a consumer shall be properly labeled. A distinct and clearly legible

label must be affixed onto all cannabis items which states:

1. This item contains cannabis.

2. Warning that the item is not a food product.

3. Warning that the item is to be kept away from children.

4. Warning if nuts or other known allergens are used.

5. Date of manufacture.

6. Any other or further labeling as may be made a requirement by any state

or federal law or agency.

i. Edibles

All cannabis edibles shall comply with the California Sherman Food, Drug, and Cosmetic

Law, as codified in section 109875 et seq. of Part 5 of Division 104 of the Health and Safety Code, and as amended from time to time. Further minimum requirements for all medical cannabis edibles include:

1. No edible marijuana products requiring refrigeration or hot holding shall

be manufactured for sale or distribution at an adult use cannabis business due to the potential for food-borne illness. Baked products ( i.e. brownies, bars, cookies, cakes), tinctures and other non-refrigerated type items are acceptable for sale at an adult use cannabis business.

2. Any such other or further requirements as propagated by any state or

federal law or agency.

3. Any edible cannabis product that is made to resemble a typical food

product ( i.e. brownie, cake) must be in a properly labeled opaque ( non-see through) package before it leaves the adult use cannabis business.

j. Signage

1. Signs on the premises shall not, in any way, obstruct the entrance or the

video surveillance system. The size, location, and design of any signage must conform to the sign provisions in the Vista Municipal Code.

2. No signage, on or off premises, shall contain advertising or marketing

material that a reasonably objective person would consider is targeted to persons under the age of twenty- one (21) years old.

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3. The use of billboards in the City for any purpose is prohibited.

4. Business identification signage shall comply with the appropriate sign

requirements with the applicable zoning district.

5. At all times, every adult use cannabis dispensary shall conspicuously

display the license issued pursuant to the provisions of this chapter so that it may be readily seen by all persons entering the location of the business.

k. Employee Training

All employees of an adult use cannabis business shall receive appropriate

training for their intended duties to ensure thorough understanding of the rules and procedures regarding maintaining compliance with all relevant state and local laws at all times.

l. Operating Hours

The maximum hours of operation for an adult use cannabis business shall be

daily from 6:00 a.m. to 10:00 p.m.

m. Use Restrictions

Smoking, ingesting or consuming cannabis by customers at the location of the

adult use cannabis business is prohibited.

n. No Minors

Except as allowed under Chapter 5.94, no one under twenty- one ( 21) years of

age shall be permitted to enter an adult use cannabis business.

o. Odors

An adult use cannabis business shall have an air treatment system that ensures offsite odors shall not result from its operations. This requirement, at a minimum, means that the adult use cannabis business shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location of the adult use cannabis business 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 adult use cannabis business, if the adult use cannabis business only occupies a portion of a building.

p. Insurance

An adult use cannabis business shall have comprehensive commercial general

liability insurance and comprehensive automotive liability insurance ( if automobiles are used by the adult use cannabis business for any purpose) protecting the adult use cannabis business in an amount of not less than two million dollars ($ 2,000,000.00) per occurrence, combined single limit, including bodily injury and property damage and not less than two million dollars 2,000,000.00) aggregate for each personal injury liability, products liability and each accident.

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q. Site management

The adult use cannabis business shall make available to customers who

purchase cannabis products a handout containing the rules and regulations governing marijuana use and consumption within the City and recommendations on sensible marijuana etiquette.

r. Parking

Each adult use cannabis business shall have at least one ( 1) dedicated parking

space for every 1,000 square feet of the permitted building. The adult use cannabis business must also have shared access to at least one ( 1) handicap accessible parking space. The parking spaces required for the medical cannabis dispensary co-located at the same site can be used to satisfy the requirements of this section. Ord 2021-8, Added, 6/22/21; Ord 2024-08, Amended 10/22/24)

Any person, whether as principal, employee, agent, partner, officer, stockholder, trustee or otherwise, who violates or causes the violation of any of the provisions of this chapter shall be guilty of a misdemeanor or infraction pursuant to Section 1.16.010 of this Code. Ord 2021-8, Added, 6/22/21)

Section 5.95.165 Suspension or Revocation of License A. In addition to any other penalty authorized by law, the license of an adult use cannabis business may be suspended or revoked if the City finds, after notice to said licensee and opportunity to be heard, that the adult use cannabis business licensee or his/her/its agents or employees has or have sold cannabis products in violation any of the provisions of this chapter or any applicable city, state or federal law (“ license violation”).

1. Upon a finding by the City of a first license violation within any three-year

period, the City shall:

a. Require the licensee to pay a fine of $ 1000 ( seven hundred and

fifty dollars);

b. Advise the licensee of the penalties for further violations of this

code section; and

c. Require the licensee to provide documentation to the City that all

employees engaged in the sales of adult use cannabis products have received training mandated by the California Department of Cannabis Control, if any, within 60 days after the warning, or such other time as shall be set by the City.

2. Upon a finding by the City of a second license violation within any three-

year period, the adult use cannabis license shall be suspended for 60 days.

3. Upon the finding by the City of a third license violation within any

three- year period, the adult use cannabis license shall be suspended for one year.

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4. Upon a finding by the City of a fourth license violation within any three-

year period, the adult use cannabis license shall be revoked.

B. In the event the City suspends or revokes an adult use cannabis license, written

notice of the suspension or revocation shall be served upon the licensee within five days of the suspension or revocation. The notice shall contain:

1. A brief statement of the specific grounds for such suspension or

revocation;

2. A statement that the adult use cannabis licensee may appeal the

suspension or revocation by submitting an appeal, in writing, in accordance with the provisions of Section 5.95.190; and

3. A statement that the failure to appeal the notice of suspension or

revocation will constitute a waiver of all rights to an administrative appeal hearing, and the suspension or revocation will be final.” Ord. 2024-09, Added 10/22/2024)

All adult use cannabis businesses shall operate in accordance with the provisions of all applicable state and local laws. It shall be unlawful for any adult cannabis business in the city, or any agent, employee, or representative of said adult cannabis business, to permit any breach of peace therein or any disturbance of public order or decorum by any tumultuous, riotous or disorderly conduct on the premises of the adult use cannabis business, or to violate any state law, or this chapter. Ord 2021-8, Added, 6/22/21)

a. Imposition of Tax

Every person or entity engaged in the operation of an adult cannabis business shall pay

to the City an amount equal to seven percent ( 7%) of all gross adult use cannabis sales as a special use tax.

b. Payment Obligation

All taxpayers subject to this chapter must pay the full tax imposed by this chapter

regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in this Code, except as required by state or federal law. Failure to pay the tax in full when due shall subject the taxpayer to penalties, interest charges, and other assessments as the City may establish from time to time. No provision in this Code shall lower the tax rate or reduce the amount of taxes paid hereunder unless the provision specifically states that the reduction applies.

c. City Council Authorization to Impose Penalties, Interest and Other Assessments

The City Council may impose penalties, interest charges, or other assessments for the

failure of a taxpayer to pay taxes in a timely manner.

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d. Payment of Tax Does Not Authorize Activity

The payment of the tax required pursuant to this chapter shall not, under any

circumstances, be construed as authorization to conduct or continue to conduct the sale of cannabis products without the requisite license and authorization from the City. Nothing in this chapter shall be deemed to imply or authorize any activity connected with the sale, distribution, or possession of cannabis that is not in conformance with all applicable local and state laws and regulations. ( Ord 2021-8, Added, 6/22/21)

Any decision made by the City Manager with regard to the status of any application for a license or license authorized pursuant to this Chapter may be appealed by the applicant or licensee to the City Council. In order to file an appeal, a written notice of appeal must be filed with the City Clerk within ten (10) calendar days of the date of the decision being appealed. The notice of appeal shall, in a clear and concise manner, present the facts, reasons, and legal arguments why the appellant contends the decision of the City Manager was made in error. If such appeal is filed, the City Council shall set an informal hearing to review the appeal. The hearing shall be set within a reasonable time which shall be: ( 1) no sooner than fifteen ( 15) calendar days from the date of the notice of appeal; and ( 2) no longer than thirty ( 30) calendar days from the date of the notice of appeal unless a regular meeting of the City Council has been cancelled, in which case the hearing shall occur no later than sixty ( 60) calendar days following the date of the notice of appeal. The parties to the appeal may agree to shorten or waive any of these time requirements.

The appeal before the City Council shall constitute a de novo proceeding. The applicant

may submit to the City Clerk any written materials, arguments, evidence, and declarations in support of its position. To allow for proper review and consideration, all submissions by the applicant or licensee must be received by the City Clerk no later than ten ( 10) calendar days prior to the scheduled hearing. Following the appeal, the City Council shall take action on the appeal. If the appeal is denied, the facts and reasons for the denial shall be set forth in writing.

If the issue on appeal to the City Council involves the revocation of a then current and

valid license issued pursuant to this chapter, and the City Council affirms the decision of the City Manager to revoke the license, the revocation shall become effective ten ( 10) days from the date of the City Council’ s decision. An appeal to the City Council will not extend the term of any license beyond the date of that license’ s stated expiration date.

If a timely appeal is not filed, the decision of the City Manager shall become final and

conclusive. Ord 2021-8, Added, 6/22/21)

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 sections in this chapter. Ord 2021-8, Added, 6/22/21)

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This chapter shall, at all times, be read to be consistent with all current and future state laws and regulations governing the sale, possession and/or use of cannabis products. Ord 2021-8, Added, 6/22/21)

An adult use cannabis business must be co-located with a medical cannabis dispensary authorized pursuant to Chapter 5.94. With regard to the operational requirements of a cannabis business ( i.e., store layout, security, parking, employee background checks), in Chapter 5.95, it is the intent of the City to mirror the requirements and procedures contained in Chapter 5.94 to the extent possible. Should there be any inconsistencies between similar requirements in Chapter 5.94 and Chapter 5.95 that cannot be harmonized and/or reconciled, the provision( s) contained in Chapter 5.94 shall control to resolve said inconsistencies. Ord 2021-8, Added, 6/22/21)

The City Manager is hereby delegated authority by the City Council to promulgate any rules, regulations, and/or procedures necessary and consistent with this chapter in order to implement and administer the intent of this chapter, including any rules and regulations necessary to ensure the efficient and timely collection of the tax imposed by this chapter. Ord 2021-8, Added, 6/22/21)

5.95(15) ( Vista 11/21/2024)

Vista Municipal Code

Chapter 5. 96

Licensing of Cannabis Delivery

Sections:

5. 96. 010 Authority; Purpose; Conflicts of Law
6. 96. 020 Definitions
7. 96. 030 Exempted Deliveries
8. 96. 040 Requirement for Cannabis Delivery License and Lawful Deliveries
9. 96. 050 License Application; Contents
10. 96. 060 Review and Action on Application
11. 96. 070 License Term
12. 96. 080 Cannabis Delivery Driver Work Permits; Expiration; Revocation
13. 96. 090 Suspension and Revocation of Cannabis Delivery Service Licenses
14. 96. 100 Appeals and Reconsideration
15. 96. 110 Operating Requirements for Delivery Services and Delivery Drivers
16. 96. 120 Inspection of Premises and Records
17. 96. 130 Taxes
18. 96. 140 Regulations
19. 96. 150 Violations

20. 96. 010 Authority; Purpose; Conflicts of Law

        A. This chapter is adopted pursuant to sections 5 and 7 of Article XI of the California

Constitution and the authority reserved to cities pursuant to state law, including without limitation, Government Code § 11362. 83 and Business and Professions Code § 26200. B. This chapter, consistent with state law, creates regulations to govern cannabis deliveries which originate in or are made to locations within the City of Vista. C. This chapter only authorizes cannabis delivery services licensed and conducted in accordance with this chapter, and no other form of cannabis delivery services whatsoever. D. In the event of a conflict between the provisions of this chapter and the provisions of any applicable state or local law or regulation, the more restrictive provision shall control. To the extent allowed by state law, the City shall have the right, but not the obligation, to enforce all applicable state laws. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 020 Definitions

Bureau" means the California Bureau of Cannabis Control.

Cannabis" shall have the meaning assigned to that term by Business and Professions

Code § 26001( f), as amended from time to time.

Cannabis delivery service" means a person who makes or arranges for at least one cannabis was obtained: ( 1) from delivery where the possession of the cannabis being delivered a location within the City of Vista and thereafter delivered to a location inside or outside the City of Vista; or ( 2) was obtained outside the City of Vista and was thereafter delivered to a location within the City of Vista.

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Cannabis delivery service license" means a City license issued pursuant to section

5. 96. 060 authorizing an applicant ( which has already obtained a Type 9 or Type 10 license) to operate a cannabis delivery service within the City of Vista.

       Cannabis retail facility" means the single location and all improvements thereon from

which activity is occurring or will occur that requires a Type 9 or Type 10 license.

Cannabis retailer" means an individual or entity that engages in commercial cannabis

activity that requires either a Type 9 or Type 10 license.

City" means the City of Vista.

City business day" means a day on which the physical structure, constituting the Vista

City Hall, is open to the public for business.

Commercial cannabis activities" shall have the meaning assigned to that term by

Business and Professions Code § 26001( k) and regulations adopted thereunder.

Delivery" shall have the meaning assigned to that term by Business and Professions

Code§ 26001( p) and regulations adopted thereunder, but does not extend to exempted deliveries described in section 5. 96. 030.

Delivery driver" means a person who, at any time, drives a vehicle for the purpose of

delivering any cannabis on behalf of a person which has been issued cannabis delivery license pursuant to chapter 5. 96.

Delivery driver work permit" means the permit issued to an applicant, upon successful

application submitted pursuant to section 5. 96. 080, which authorizes the permit holder to operate as a delivery driver within the City of Vista.

Disqualifying conviction" means a felony conviction, a drug conviction or, a conviction

within seven years prior to the date an application is filed, constituting a driving under the influence conviction.

Driving under the influence conviction" means a criminal conviction for driving under

the influence of alcohol or drugs.

conviction" means a criminal conviction manufacture, Drug involving the theft,

transportation, sale or possession of a controlled substance.

Entity" has the same meaning as does the term person, but excludes a natural person.

Extra- territorial delivery service" means any cannabis delivery service which makes deliveries of cannabis that originate from a location outside the City of Vista.

Individual" means a natural person.

Licensing officer" means the city employee designated by the City Manager( other than

the City Manager or Assistant City Manager) who is responsible for processing license applications, delivery driver work permit applications, and assuming other functions necessary to implement this chapter.

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Person" means any individual, firm, partnership, joint venture, association, corporation,

limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination of persons acting as a unit.

Primary caregiver" shall have the meaning assigned to that term by§ 11362. 7( d) of the

Health and Safety Code.

Registration list" means the current registration list for medical cannabis retail
of Vista pursuant to Vista Municipal Code § 5. 94. 070. A.businesses maintained by the City

Qualified patient" shall have the meaning assigned to that term by § 11362. 7( f) of the

Health and Safety Code.

Type 9 license" means a Type 9 (cannabis retailer non- storefront) issued by the Bureau.

Type 10 license" means a Type 10 ( cannabis retailer storefront) issued by the Bureau.

Vista- based delivery service" means any cannabis delivery service which makes

deliveries of cannabis that originate from a location inside the City of Vista.

Vista- registered cannabis retailer" means a cannabis retailer which is included on the

current registration list maintained by the City of Vista pursuant to Vista Municipal Code 5. 94. 070. A. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 030 Exempted Deliveries

This chapter does not apply the following types of cannabis delivery or transport:
A. A lawful non- commercial delivery of cannabis made by a primary caregiver to a

qualified patient in conformity with state law and applicable regulations. B. A delivery or transfer of cannabis which neither originates from a location within the City of Vista nor concludes at a location within the City of Vista. C. A delivery or transfer of cannabis by a licensed cannabis distributor( holding either a Type 11 or Type 13 license issued by the Bureau) which is conducted in accordance with applicable state laws, state regulations, and local ordinances. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 040 Requirement for Cannabis Delivery License and Lawful Deliveries

A. A person may not operate as a cannabis delivery service in the City of Vista unless the person: ( 1) has and maintains a valid cannabis delivery service license; and ( 2) operates the cannabis delivery service in conformity with this chapter. B. An individual may not deliver cannabis on behalf of a cannabis delivery service unless: ( 1) the cannabis delivery service has been issued a current and valid cannabis delivery service license; ( 2) the individual has been issued a valid and current cannabis delivery driver work permit pursuant to section 5. 96. 080, if making deliveries on behalf of a Vista- based delivery service; and ( 3) the cannabis delivery driver acts in conformity with all rules and requirements of state law, state regulations, and this chapter. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

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Section 5. 96. 050 License Application; Contents

An application for a cannabis delivery service license shall be made on a form prescribed

by the City. The application shall be accompanied by an application fee in an amount established by resolution of the City Council, and shall include a statement, made under penalty of perjury, certifying that all of the information contained in the application is true and correct. An applicant shall have an opportunity to cure any incomplete application within thirty( 30) days of written notice of incompleteness by the City. An application for a cannabis delivery service license shall include at least the following: A. The name, mailing address, and telephone number of the applicant. B. The address of the single cannabis retail facility from which the cannabis deliveries will originate. C. Evidence that the cannabis delivery service holds a valid and current Type 9 or a Type 10 license for the cannabis retail facility. D. Evidence that the cannabis delivery service, if located within the City is included on the current registration list maintained by the City pursuant to chapter 5. 94. E. A list of all vehicles to be used for cannabis deliveries in the City of Vista, with the following information: ( 1) year, make and model, color and vehicle information number of vehicle; 2) license plate number for vehicle; and ( 3) confirmation that the vehicle is equipped with an

alarm system. F. Evidence of automobile liability insurance from an insurance company admitted by the Insurance Commissioner of the State of California to transact the business of insurance in the state which shall be for a combined single limit for bodily injury and property damage liability of not less than one million dollars ($ 1, 000, 000). G. If the applicant will operate from a location within the City of Vista, evidence that the premises of the Vista- based delivery service has at least one on- site space reserved for each delivery vehicle, or has provided equivalent arrangements for the parking of those vehicles that satisfies the licensing officer in the officer's sole discretion. H. If the applicant will operate from a location within the City of Vista, an initial list of all individuals whom the cannabis delivery service authorizes to serve as delivery drivers upon obtaining a cannabis delivery driver work permit pursuant to section 5. 96. 080. I. The applicant shall commit to provide periodic reports and documentation in such regulations on the following: ( 1) changes andmanner and at such times as set by City Manager employed service; ( 2)updates with respect to the cannabis delivery drivers by the delivery changes and updates with respect to the delivery vehicles used by the cannabis delivery service; 3) documentation regarding the presence of sufficient parking spaces for those vehicles; ( 4) documentation relating to the maintenance of insurance required by this chapter; and ( 5) other documentation or information useful in assuring that the cannabis delivery service is complying with this chapter. J. A signed indemnity agreement, in a form approved by the City Attorney, by which the applicant agrees to indemnify and defend ( at its sole cost and expense) the City, its officers, employees and agents against: ( 1) any legal challenge to the issuance of a license to the applicant pursuant to this chapter, including any decisions to renew or extend that license; and ( 2) all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the actions undertaken in connection with the cannabis delivery service and its cannabis delivery drivers. Any such defense shall be made using legal counsel reasonably selected by the City. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

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Section 5. 96. 060 Review and Action on Application

A. A license application shall be denied for one or more of the following reasons,

which may be based on the information contained in the application: ( 1) the application is incomplete, or fails to provide required information; or( 2) the application includes false, inaccurate or materially misleading information. B. When an application is denied, the licensing officer shall provide a notice of denial to the applicant setting forth the reasons for the denial. The notice shall be sent to the applicant by mail and/ or email to the address or addresses provided by the applicant in its application. The notice shall be deemed to be delivered on the date it is deposited into the United States mail, postage prepaid, or emailed, whichever is earlier. The notice of denial shall become final and conclusive unless a timely, complete appeal is filed with the City Clerk in accordance with section 5. 96. 100, along with the required appeal fee, no later than the tenth ( 10th) calendar day following the date the notice of denial is deemed to be delivered. C. If no basis exists to deny an application, the licensing officer shall issue the appropriate license to the cannabis delivery service. The license shall identify, specify, or include: service; ( 2) the address for the retail cannabis 1) the name of the licensed cannabis delivery facility; and ( 3) such other content as the licensing officer determines to be appropriate. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 070 License Term

Unless earlier revoked pursuant to section 5. 96.090, a cannabis delivery license shall

automatically expire on the earlier of the following: ( 1) the date on which the cannabis retail facility from which deliveries are made ceases to hold a Type 9 or a Type 10 license; or ( 2) the date on which a cannabis retail facility located in the City of Vista ceases to be included on the most current registration list. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 080 Cannabis Delivery Driver Work Permits; Expiration; Revocation

A. An individual shall not deliver cannabis for a Vista- registered cannabis retailer without first obtaining a cannabis delivery driver work permit pursuant to this section. B. An application for a cannabis delivery driver work permit shall be made on a form provided by the City. The completed application shall contain the following information and be accompanied by the following documents: 1. The applicant' s legal name and any other names used by the employee. 2. The applicant' s age, date and place of birth. 3. The applicant' s present residence address and telephone number. 4. The name and address of the cannabis delivery service that will employ the applicant. 5. A statement that the applicant does not have a disqualifying conviction. 6. A receipt indicating that a Live Scan has been performed with respect to the applicant and that its results will be delivered to the City so the City can confirm if the applicant has been convicted of an offense which is a precluding conviction. 7. Satisfactory written proof that the employee is at least twenty-one ( 21) years of age. 8. Evidence that the applicant holds a valid and current driver license issued by the Department of Motor Vehicles. C. The completed application shall be signed under the penalty of perjury, and shall be accompanied by a non- refundable application fee as set by resolution of the City Council.

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D. Within five City ( 5) business days after receipt of the properly completed application and any Live Scan results, the licensing officer shall grant or deny the application and so notify the applicant. The licensing officer shall grant the application and issue the permit unless the application is denied for one or more of the following reasons: 1. The employee has made any false, misleading, or fraudulent statement in the application; 2. The employee is under twenty- one ( 21) years of age; 3. The employee has been convicted of an offense constituting a disqualifying conviction. E. The permit, if approved, shall state on its face the name of the person to whom it is granted, the name and address of the cannabis delivery service employing the individual, and such other information as the licensing officer determines should be set forth in the permit. F. The licensing officer may revoke a cannabis delivery driver work permit for any reason which would permit the denial of an application for a delivery driver work permit. G. If not first revoked pursuant to paragraph F, the permit shall expire on the earlier of the following: ( 1) the date the employee no longer has a valid California driver license; or ( 2) the date on which the cannabis retailer which employs the driver no longer holds a Type 10 license or is no longer included on the City's registration list. H. At any time, a cannabis delivery driver may relinquish his or her employee work permit by providing the City with a signed written direction to that effect. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 090 Suspension and Revocation of Cannabis Delivery Service Licenses

A. The licensing officer may summarily suspend or revoke a cannabis delivery service license if any of the following, singularly or in combination, occur: 1. The licensing officer determines that the licensee has failed to comply with this chapter or any condition of approval. 2. A circumstance occurs, exists, or is discovered which would have permitted the licensing officer to deny the cannabis delivery service license. 3. The licensee, if a Vista- registered cannabis retailer, fails to allow inspection of its cannabis retail facility, its delivery vehicles, or its books or records in accordance with section 5. 96. 120. 4. The licensee does not have or has not maintained: ( a) a current and valid Type 9 or Type 10 license; ( b) a current and valid local license, registration, permit, or approval issued by a city or county that is required for the lawful operation of the cannabis retailer. B. A licensing officer may ( but has no obligation to) defer the effective date for a license suspension or revocation to permit a licensee sufficient time to file an administrative appeal before the suspension or revocation takes effect. C. A suspension may not exceed one year. If a license is terminated, the cannabis retailer may not reapply for a cannabis delivery service license for a period of twelve months. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 100 Appeals and Reconsideration

A. An applicant or a cannabis delivery service may file an appeal if a license

application is denied or if cannabis dispensary service license is revoked or suspended. A timely and complete appeal must be filed with the City Clerk no later than ten ( 10) city business days from the earlier of the date on which the City notifies the applicant of the license denial, revocation, or suspension. The date of notice shall be the earlier of the date the action is communicated by email or the date on which the City deposits a mailed notice into the United States mail. A

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complete appeal must include an appeal fee in an amount set by resolution of the City Council, and the following: ( i) the name of the party filing the appeal, which must be either the applicant or cannabis delivery service which experienced the adverse licensing decision; ( ii) an email address and street address to which correspondence may be communicated; ( iii) the licensing action which is being appealed; and ( iv) all evidence, facts, and reasons to be considered and which the appellant believes support its appeal. The submitted appeal will be presented to the City Manager for action based on the materials in the record developed by the City prior to taking its action, and the materials submitted by the appellant. Before taking action, the City Manager may provide the appellant with additional evidenced used or which may be used to justify the City' s action of denial, and offer the appellant an opportunity to respond. Within ten ( 10) City business days of receiving the appeal, providing additional evidence to the appellant ( if any), and obtaining a response from shall: (appellant ( if any), the City Manager 1) deny the appeal if the City Manager determines that the denial was permitted under the terms of this chapter; (2) reverse the denial if the City Manager determines that the denial was not permitted under the chapter and an approval should have been given; or ( 3) direct that a remand occur or such other actions be taken as may be needed to achieve better compliance with the terms of this chapter. The decision of the City Manager shall be made in writing. Rather than processing the appeal himself or herself, the City Manager may delegate his or her responsibilities to the Assistant City Manager. The decision of the City Manager, or the Assistant City Manager in the event of a delegation, shall be final, conclusive and without further administrative appeal. B. For an action not covered by paragraph A, an aggrieved party may make a written request to the licensing officer to reconsider or cause an action to be reconsidered. Such a request must be filed with the City Clerk within ten ( 10) city business days of the earlier of the date the City notifies the aggrieved party of the action ( for which reconsideration is sought) by email or the date on which the City deposits a mailed notice of the action into the United States mail. The request must provide: ( i) the name of the party seeking reconsideration, ( ii) an email address and street address to which correspondence may be communicated, ( iii) the action for which reconsideration is sought, ( iv) the result sought following reconsideration, and ( v) all evidence, facts, and reasons that support the request for reconsideration. If a complete request for reconsideration is not filed within the time required by this paragraph, the action shall become final and conclusive. If a timely and complete request for reconsideration is filed, the City Clerk will provide the request to the licensing officer. Within ten ( 10) City business days, the licensing officer shall advise the aggrieved party in writing that the licensing officer has decided to not adjust the action, to adjust or reverse the action, or advise the party that further evidence, information or explanation is required before a determination can be made. If the licensing officer instructs the aggrieved party that additional evidence, information or explanation is required, the party shall provide it to the licensing officer within ten ( 10) City business days of the request, or the request for consideration shall be deemed to be finally abandoned. A written determination by the licensing officer shall be sent to the party seeking reconsideration within ten ( 10) City business days of: ( 1) the date on which the request for reconsideration is filed with the City Clerk; or ( 2) if applicable, the date on which supplemental evidence, information or explanation is provided to the licensing officer in response to the request of the licensing officer, provided that the supplemental evidence, information or explanation is provided before the request for reconsideration is deemed to be abandoned. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 110 Operating Requirements for Delivery Services and Delivery Drivers

A. Each Vista- based delivery service must at all times: ( 1) maintain a Type 10

License; ( 2) be included on the current registration list maintained by the City pursuant to Vista Municipal Code § 5. 94. 070. A; ( 3) hold all other permits or approvals required for the retail

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cannabis activities it undertakes; ( 4) hold a business license issued by the City pursuant to chapter 5. 04 of the Vista Municipal Code; and ( 5) have at least one on- site parking space for each delivery vehicle or substitute parking arrangements which are satisfactory to the licensing officer in his sole discretion. B. Each extra- territorial cannabis delivery service must at all times: ( 1) maintain a Type 9 or 10 License; ( 2) hold all other permits or approvals required for the retail cannabis activities it undertakes; and ( 3) hold a business license issued by the City pursuant to chapter 5. 04 of the Vista Municipal Code. C. Each delivery service which loses or experiences a suspension of any license or approval described in paragraphs A or B must provide written notice to the licensing officer of that loss or suspension within one City business day. D. Every delivery service must at all times comply with all applicable restrictions and mandates of: ( 1) this chapter, including without limitation, those listed in paragraphs E through M below; and ( 2) state law and state regulations, including without limitation, those set forth in 16 CCR §§ 5415 through 5421. E. Cannabis deliveries shall be made only by a person who is directly employed by the cannabis delivery service, holds a valid and current delivery driver work permit if making deliveries on behalf of a Vista- based delivery service, and holds a valid and current driver license. The work permit and driver license must be physically possessed by delivery driver at all times he or she is working for the cannabis delivery service. F. Cannabis deliveries shall be made only using vehicles which are registered with the Department of Motor Vehicles and which do not display the name of the cannabis delivery service or otherwise advertise any commercial cannabis activity. G. The cannabis delivery service shall maintain automobile liability insurance from an insurance company admitted by the Insurance Commissioner of the State of California to transact the business of insurance in the state which shall be for a combined single limit for bodily injury and property damage liability of not less than one million dollars ($ 1, 000, 000). H. Cannabis deliveries shall occur only between the hours of 9:00 a. m. and 10: 00 p. m. I. Deliveries shall be made via a person- to person transaction at the residence of the qualified patient or that person' s primary caregiver where the delivery person confirms the name and age of the customer before any release of the cannabis. Any other delivery or transaction is prohibited. The qualified patient or primary caregiver shall maintain a copy of the delivery request and make it available to law enforcement officers upon request. J. Delivery drivers shall not transport cannabis in excess of the limits established by the state. K. All orders shall be packaged by name of the qualified patient. The delivery driver shall also maintain a copy of the delivery request and make it available upon request to law enforcement officers. L. A person or entity which operates a cannabis delivery service shall complete all forms and records, under the penalty of perjury, that the licensing officer determines may be useful or helpful to the officer' s calculation or confirmation of gross sales or gross receipts attributable to the cannabis delivery service, or in the case of a Vista- based delivery service, the amount of gross sales or gross receipts for the Vista- registered cannabis retailer. M. Pursuant to regulations adopted by the City Manager, a cannabis delivery service can be required to provide periodic reports and documentation with respect to the following: ( 1) changes and updates with respect to the cannabis delivery drivers employed by the delivery service; ( 2) changes and updates with respect to the delivery vehicles used by the cannabis service; (delivery 3) documentation regarding the availability of sufficient parking spaces for those vehicles; ( 4) documentation relating to the procurement of insurance required by this chapter; and

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5. other documentation or information useful in assuring that the cannabis delivery service is complying with this chapter. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 120 Inspection of Premises and Records

A. This section applies to a Vista- registered cannabis retailer which delivers cannabis pursuant to this chapter, and to a Vista- registered cannabis facility from which cannabis deliveries are made. B. All owners, managers, or employees of the Vista- registered cannabis retailer shall provide the City ( including any employees, officers, agents, or contractors of the City) with full access to the entirety of the Vista- registered cannabis facility, its security camera footage, its delivery vehicles, its equipment, and its records or books as follows: 1. To inspect the premises, land, improvements comprising the Vista- registered cannabis facility for compliance with this chapter and state laws, including Building Code and Fire Code compliance. 2. To review or copy any materials, books, records or security camera footage of the Vista- registered cannabis retailer and Vista- registered cannabis facility, including without limitation any related to the cannabis delivery service. 3. To test any equipment possessed by, in control of, or used by the Vista- registered cannabis retailer or located at the Vista- registered cannabis facility; 4. To test any cannabis or cannabis product possessed by, in control of, or used by a Vista- registered cannabis retailer. 5. To inspect any vehicles used by the Vista- registered cannabis retailer, including without limitation those used for making deliveries of cannabis. C. Failure by any Vista- registered cannabis retailer to comply with this section shall itself be a violation of this chapter. D. Prior notice of an inspection, investigation, review, or audit is not required. E. Any inspection, investigation, review, or audit of a Vista- registered cannabis retailer or of a Vista- registered cannabis facility shall be conducted anytime the facility is open for business. F. This section shall not be construed or applied in a manner to deprive any Vista- registered cannabis retailer or other person of any privilege which is guaranteed by the Constitutions of the United States and/ or the State of California, or any other applicable law. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 130 Taxes

A. All revenues and payments obtained by a Vista- registered cannabis retailer for cannabis deliveries shall constitute gross sales when calculating the special use tax owed by the Vista- registered cannabis retailer under Vista Municipal Code § 5. 94. 140. A. Failure to make full and timely payment of that tax, along with any interest or penalties, is a violation of this chapter. B. All extra-territorial cannabis delivery services must make a timely payment of the taxes which it owes to the City from time to time as required by City ordinance or other law. These taxes, at minimum, include both: ( 1) the gross receipts taxes due pursuant to chapter 7. 10, inclusive of any applicable late payments, interest, and penalties; and ( 2) the taxes owing pursuant to chapter 5. 04, inclusive of any late payments, interest, and penalties. Failure to make full and timely payment is a violation of this chapter. C. Each Vista- registered cannabis delivery service and each extra-territorial delivery service shall immediately and fully participate in any tax audit or review as allowed by Vista

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Municipal Code §§ 5. 94. 140 et seq. and chapter 7. 10. 090 et seq., and make all records available for inspection by the City or its agents in connection with such an audit or review. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 140 Regulations

The City Manager is authorized to promulgate such regulations, rules and procedures as

may be necessary or convenient to implement this chapter. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

Section 5. 96. 150 Violations

A. Any violation of this chapter is unlawful and a public nuisance. A nuisance under this chapter may be abated by the City, or by the City Attorney on behalf of the people of the State of California, as a nuisance by means of a restraining order, injunction, abatement warrant, or any other order or judgment in law or equity issued by a court of competent jurisdiction. The City, or the City Attorney on behalf of the people of the State of California, may seek injunctive relief to enjoin violations of, or to compel compliance with this chapter or seek any other relief or remedy available at law or equity, including the imposition of monetary civil penalties. B. Any violation of any of the provisions of this chapter shall constitute a misdemeanor violation and upon conviction thereof any violation shall be punishable by a fine not to exceed one thousand dollars ($ 1, 000. 00), or by imprisonment for a period of not more than six ( 6) months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. No proof of knowledge, intent, or other mental state is required to establish a violation. C. In the event of a violation of this chapter, the City may notify a cannabis delivery service and any other responsible party that the City intends to impose a daily civil penalty for the shall not exceed two thousand dollars ($ 2, 000)violation. Civil penalties imposed on a daily basis for each day or portion of a day that the violation occurs. The amount of civil penalties imposed shall be determined by taking into account the severity of the violation, the occurrence of prior violations, the degree of culpability, the economic benefit accruing to the cannabis delivery service violation), and whether the violation can bedue to the violation ( or cost savings enabled by the attributed to deliberate misconduct, negligence, inadequate supervision, or error. Penalties may be set so they begin to accrue if a cure is not accomplished by a set date, or in a manner where the penalties escalate over time. Penalties may be recovered as part of any civil action, or as part of a negotiated agreement between the City and the cannabis delivery service which fixes the amount of the civil penalties and the terms by which the violation will be cured if it has yet to be corrected. D. The City may issue an administrative citation for each violation of this chapter pursuant to the procedures set forth in chapter 1. 13. E. Whenever in this chapter any act or omission is made unlawful, it shall include causing, aiding, abetting, suffering, or concealing the fact of such act or omission. F. The remedies specified in this section are cumulative and in addition to any other remedies available under state or local law for a violation of this Code. G. The procedures contained in section 5. 96. 100 shall not apply to and may not be utilized in connection with any enforcement actions, penalties or proceedings taken pursuant to this section. Ord. No. 2019- 20, Enacted, 12/ 10/ 19)

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Chapter 5.97

Commercial Cannabis Cultivation