Weed Municipal Code Ch. 8.29 Retail Cannabis Sales

It is the purpose and intent of this chapter to authorize and regulate the locations and operations of retail cannabis sales in a manner which protects the health, safety, and general welfare of residents and businesses within the city. It is neither the intent nor the effect of this chapter to condone or legitimize the sales, use, or possession of cannabis (marijuana) except as allowed by California law.

(Ord. No. 460-2020, § 1, 4-9-2020)

[The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:]

"Applicant" means a person who submits an application pursuant to this chapter.

"Application" means an application for the permit described in this chapter.

"Business" means any sales activity, whether for-profit, or non-profit.

"Cannabis" also sometimes commonly referred to as "marijuana," has the same meaning as "cannabis" in section 19300.5 of the California Business and Professions Code, which includes marijuana as defined in California Health and Safety Code section 11018. A cannabis product is anything containing cannabis.

"Chief of police" means the chief of police of the city or his/her designee.

"City" means the City of Weed.

"City clerk" means the city clerk of the city, or his/her designated deputy.

"City council" means the city council of the city, acting at a duly called and conducted meeting thereof.

"City manager" means the city manager of the city, or his/her designee.

"Code" means the Weed Municipal Code.

"Downtown Business District" of the city means the C-l zoned properties fronting on Main Street, between Weed Boulevard (Highway 97) and Division Street.

"Non-store-front" means a retail cannabis sales business which sells cannabis goods to customers exclusively through delivery. The premises of a non-store front business shall not be open to the public. It must be lawfully located and operating within any C-l zoning district with a conditional use permit, and its customers may not enter the premises to make a purchase, nor take delivery of a cannabis product on the premises, and may only place an order remotely and receive delivery by the permittee at another location. Nothing herein shall be deemed to limit such a business to the sale of cannabis products.

"Permit" means a retail store front cannabis sales permit or retail cannabis delivery permit issued pursuant to this chapter.

"Permittee" means a person to whom a permit has been issued.

"Person" means an individual or business entity (corporation, partnership, limited liability company, association, or other form of organization).

"Premises" means the location for which a permit has been issued.

"Retail cannabis sales permittee" means a person who is in compliance with California law and this chapter as it may from time to time provide for such a person to sell cannabis.

"Store front" means a retail cannabis sales business located within the downtown business district, with frontage and its entry on Main Street, where customers can enter the business, make a purchase of a cannabis product, and take immediate delivery on the premises. Nothing herein shall be deemed to limit such a business to the sale of cannabis products. A business which makes only deliveries is not a store front business.

(Ord. No. 460-2020, § 1, 4-9-2020)

No cannabis may be sold by any person within the city, whether from a fixed or mobile location, unless the person holds a valid permit under this chapter.

(Ord. No. 460-2020, § 1, 4-9-2020)

A. Types of Permits. Permits may be issued for store front cannabis sales and non-store front sales, as defined in this chapter.

B. Permit Required. Cannabis may be sold only by a person holding a valid permit. The permit shall be prominently displayed at the business location and be made available for inspection by any city law enforcement officer, the city manager, and the city clerk, upon request.

C. Application; Fees.

1. Submission. No permit shall be issued by the city except upon submission of the designated application form, completion of the required documentation, execution of an indemnification agreement in form satisfactory to the city manager, and payment of the required fee, if any. Applicants to whom a city adult-use dispensary permit has previously been issued shall automatically qualify for the initial issuance of a store front sales permit specified by this chapter, and shall receive that initial permit without additional fees or application. Such existing permits shall terminate upon the earlier of the date of issuance of a retail store front business permit under this chapter, or ninety days after the effective date of this chapter, provided, however, that this period may be extended by the city manager for good cause.

2. Forms. The city manager and/or city clerk shall develop forms and other requirements for persons to apply for a permit and a schedule of fees to be charged for the application, renewal, amendment, inspection of premises, background checks, fingerprinting, and other city actions relating to the permit, sufficient to recover the city's estimated actual costs and expenses for the same. The fee schedule shall be approved by resolution of the city council and shall go into effect immediately upon the adoption of such a resolution. The city council reserves the power to review and adjust the fee schedule at any time by resolution.

3. Review. Permit applications shall be reviewed for completeness and compliance by the city manager, in consultation with the chief of police. If a timely- filed application is accompanied by the required fee (in cash, check, or by credit card if allowed by city), and is complete and in compliance with state law, this chapter, and any other applicable ordinances, and issuance of the requested permit would not be violative of state law, it shall be approved and the permit shall be issued.

4. Location. The application shall designate the location for which the permit is to be issued and at which the permittee's store front or non-store front business will be conducted. The City may require an inspection of the premises proposed to be used, and criminal background checks of the applicant and any officers and managers thereof, as conditions of the issuance of the permit.

5. Amendment. It shall be the continuing responsibility of every applicant and permittee to at all times maintain current information in its application and permit. If an applicant or permittee needs to change any information in its application or permit it shall apply to the city for an amendment to the same and pay any fee.

6. Expiration. If, within twelve months after its receipt by the city an application for a permit has for any reason not been approved, it shall expire.

7. Denial. If any applicant is denied a permit, the city manager shall promptly notify the applicant of the fact, the reason(s) for denial, and of the applicant's right to request further review by the city manager, which review shall be completed within thirty days of request, and if that review does not resolve the issue to the satisfaction of the city manager, of the right to an administrative appeal of the denial to the city council, as provided hereinbelow, which appeal shall be heard and decided within sixty days of request, and that the decision of the council shall be final.

D. Term. The term of the permit, and of any renewal thereof, shall be one year. Applications for permit renewal on the required form, along with the applicable fees, may be submitted to the city clerk not more than one hundred eighty, nor less than sixty days prior to the scheduled expiration of the existing permit. If a permit expires, the permittee shall immediately suspend all cannabis sales until such time as the permit is renewed, provided, however, that the city manager may extend the expiration date if he or she deems it necessary for the adequate processing of a renewal application.

E. Allowable Locations for Store Front Sales.

1. Downtown Business District. A retail store front cannabis sales business may be located only in the downtown business district of the city.

2. Entrance. The premises of a retail store front cannabis sales business shall have its public entrance and identifying signage facing and readily visible from the sidewalk of Main Street directly in front of it. Any part of the premises may be at street level and/or downstairs or upstairs.

F. Suspension.

1. State License. The surrender, suspension, revocation, or cancellation of the permittee's State of California Cannabis sales permit shall cause any permit issued to the permittee pursuant to this chapter to be likewise immediately surrendered, suspended, revoked or canceled. Upon receipt of written notice satisfactory to the city manager that the said permittee's State of California permit has been reinstated, the permit issued to permittee pursuant to this chapter shall be immediately reinstated upon payment of any fee, unless the suspension was the result of the permittee's violation of this chapter.

G. Inactivity.

1. By Request. A permittee may make a written request that a permit suspension authorization be issued to it by the city and that its permit be thereupon suspended for a period of time, not to exceed one year, if necessary, due to allow remodeling of the premises, or for any period of time after the filing of a petition by the permittee for bankruptcy protection and for the pendency of that proceeding, or because of the death or disability of the permittee.

2. Without Request. If, without first obtaining such a permit suspension authorization, a permittee ceases active cannabis sales operations for four consecutive weeks, its permit shall be suspended by the city upon written notice to the permittee and shall be reinstated only upon approval of the city council.

a. Store Front Inactivity. A store front permittee shall be deemed to have ceased active cannabis sales operations on any given day unless, for at least six hours that day it is open to the general public and has cannabis products immediately available for purchase by members of the general public who are permitted to take possession of the same upon such purchase. Such active cannabis sales operations must take place during at least four days each calendar week in order for the business to be considered to be active that week. The city manager may make any determinations required or allowed under this section.

b. Non-Store Front Inactivity. A non-store front permittee shall be deemed to have ceased active cannabis sales operations on a given day if it makes no deliveries of sales on that day. The permittee shall provide documentation of such sales and deliveries upon request of the city manager.

3. By City Manager. A permit issued under this chapter may be immediately suspended by order of the city manager, pending a hearing before the city council, upon a determination by the city manager that the permittee and/or its retail store front, or non-store front, cannabis sales business are, or within the preceding sixty days have been, in material violation of this chapter or of the permittee's State of California Cannabis sales permit. This suspension may be released by the city manager at any time upon his or her determination that a violation is unfounded. A suspension by the city manager shall not remain in effect for more than forty-five days unless an extension is necessary because the permittee has requested a postponement of its hearing before the city council.

4. Default in Payment of City Taxes. A permit issued under this chapter may be suspended by the city council upon a determination that the permittee has not paid any tax owed to the city, and shall be reinstated upon payment of such a tax.

a. Financial Reporting. Permittees shall prepare and file with the city manager a monthly report stating cannabis sales. The report shall be signed under penalty of perjury by the permittee or its authorized representative and shall be in a form, and include the information, as specified by the city manager. Neither the report not its content shall be disclosed to the public.

b. Audits. The city manager may require any permittee to submit to an audit of its sales records in order to verify that sales have been accurately reported and taxed. The permittee shall make its books, records, reports, tax returns, and any other requested data, available to the auditor.

H. Existing Permits. Any and all medical cannabis dispensary and adult-use cannabis sales permits that are in effect at the effective date of this chapter shall automatically be deemed to having applied for a retail store front cannabis sales permit or retail non-store front cannabis sales permit, as applicable, under this chapter, without further application or payment of an application fee, and such new permits under this chapter for those existing businesses shall expire when their previous permits would have expired. If the permittee for the non-store front cannabis sales permit already has been issued a conditional use permit, a new one shall not be required, but it and the other "grandfathered" permittees shall otherwise thereafter comply with all provisions of this chapter.

I. Deliveries.

1. By Permittees. Any permittee under this chapter may make deliveries of cannabis products to any location within, or outside, the city, subject, however, to any other local, or state, regulations and requirements.

2. By Vendors from Outside City. Deliveries of cannabis products to locations within the city by persons who are not permittees under this chapter are prohibited unless the city is, as a matter of law, not permitted to prohibit them.

3. Business License. Persons who will make deliveries of cannabis products within the city shall obtain a business license from the city pursuant to Chapter 5.04 of this Code, and pay the required fee, unless the city is, as a matter of law, not permitted to require such a business license. Retail store front and non-store front permittees may obtain the required business license without payment of an additional fee.

J. Maximum number of Permits.

1. Store Front. No more than two retail store front cannabis sales permits shall be issued and in effect at any time, provided, however, that the city council may, by resolution, at any time increase this maximum number, or decrease the maximum number to the extent there are any unissued permits.

2. Non-Store Front. No more than one retail non-store front cannabis sales permit shall be issued and in effect at any time, provided, however, that the city council may, by resolution, at any time increase this maximum number, or decrease the maximum number to the extent there are any unissued permits. The sole unissued non-store front permit shall be issued to the first qualified person who applies for the same and pays the required fee.

K. Operating Hours.

1. Store Front. Retail store front cannabis sales businesses shall not be open to the public between 9:00 p.m. and 8:00 a.m. but may receive deliveries at any time.

2. Non-Store Front. Non-store front cannabis sales businesses may receive orders, make deliveries, and receive shipments, at such times as may be specified in the conditional use permit issued therefor.

L. Inspections. The premises for which a permit have been issued shall at all times be subject to inspection by the city manager, with or without prior notice. The city manager my suspend any permit if the permittee disallows or interferes with any such inspection.

(Ord. No. 460-2020, § 1, 4-9-2020)

A retail store front cannabis sales business and a retail non-store front cannabis sales business shall at all times be operated in compliance with all applicable state laws and regulations. In the event of a conflict between this chapter and any such state laws or regulations, the portion of this chapter which is in conflict shall be deemed void and superseded by the state law or regulation.

(Ord. No. 460-2020, § 1, 4-9-2020)

The city manager, in consultation with the city attorney, may adopt additional regulations and procedures which are not inconsistent with this chapter, regarding the application, review, issuance, documentation, registration, regulation, suspension, revocation, and reinstatement of permits, and regarding the interpretation and application of this chapter, and make the same readily available to the public on the city's website and upon request. Such regulations and procedures shall go into effect immediately upon approval by the city council, and shall at all times be subject to review and amendment by the city council, in its discretion.

(Ord. No. 460-2020, § 1, 4-9-2020)

A permit issued under this chapter may not be transferred to any other person except as provided herein.

A. Death or Disability of Permittee. Upon the death of a permittee, the permit issued pursuant to this chapter shall be suspended until a permit amendment is approved by the city. If such a permit amendment is not approved within one year of the permittee's death, the permit shall lapse.

B. Business Reorganizations. If the designated chief executive officer, chief financial officer, or secretary of a permittee organization are to be changed, or a majority of the membership of the board of directors or other governing body of any organization are to be changed, the permittee must first apply for a permit amendment, pay any fee, and provide such information as the city manager may then specify. The permittee may continue to operate, provisionally, for up to ninety days while the permit amendment application is pending, provided, however, that the city manager may extend this period if he or she deems it necessary for the proper processing of a permit amendment.

(Ord. No. 460-2020, § 1, 4-9-2020)

A. No Smoking Notice. A retail store front cannabis sales business shall erect and maintain, at each public entrance to the premises, a sign, not less than two square feet in size, visible outside the premises from at least twenty-five feet away, which states that the smoking, vaping, ingesting, or consuming of cannabis and cannabis products is prohibited outside of the licensed premises and within one hundred feet of the sign.

B. Other Signage. All other signage of a retail storefront cannabis sales business shall comply with applicable city ordinances. No such signage shall not portray cannabis (marijuana) leaves, nor contain the words "weed" or "Weed", provided, however, that existing historical signs on buildings containing the word "weed" may be retained with the consent of the city council.

(Ord. No. 460-2020, § 1, 4-9-2020)

A cannabis sales business shall maintain, for a period of two years, a current register of the names and addresses of all employees, volunteers, directors, and officers of the business and shall disclose the same for inspection by any city officer or official for the purpose of determining compliance with this chapter.

(Ord. No. 460-2020, § 1, 4-9-2020)

A retail storefront cannabis sales business may, upon the following conditions, allow consumption of cannabis products by its customers on the premises for which its permit is issued, as follows:

A. Compliance with State Law. The consumption must be in compliance with all applicable state laws and regulations then in effect.

B. City Regulations. The consumption shall be allowed only upon the issuance of a permit, which shall be issued by the city manager.

(Ord. No. 460-2020, § 1, 4-9-2020)

Any decision of the city manager made under the authority of this chapter may be appealed by an applicant or permittee to the city council.

(Ord. No. 460-2020, § 1, 4-9-2020)

The amounts of any fees referred to in this chapter shall be established, and may be amended, by city council resolution.

(Ord. No. 460-2020, § 1, 4-9-2020)