Yreka Municipal Code Ch. 5.30 Cannabis Business Activities

Footnotes:

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Editor's note— Ord. No. 885, § 2, adopted Oct. 21, 2025, repealed the former Ch. 5.30, and enacted a new Ch. 5.30 as set out herein. The former Ch. 5.30 pertained to cable television system franchise.

It is the purpose and intent of this chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") to accommodate the needs of medically ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same by establishing a local permit system for such businesses to address sensible regulations to protect the city's residents, neighborhoods, and businesses from disproportionately negative impacts . It is also the purpose and intent of this chapter to provide access to medicinal cannabis for persons aged eighteen and over as authorized by the MAUCRSA. It is the purpose and intent of this chapter to regulate the commercial sale, delivery and testing of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the city and to enforce rules and regulations consistent with state law through a local permit system.

(Ord. No. 885, § 2, 10-21-2025)

The following are definitions of terms used in this chapter:

"Applicant" means a person or entity that submits an application for a cannabis business permit under this chapter.

"Authorized" means allowed by and properly obtaining all required licenses, permits, approvals, and any other required review based on all applicable federal, state, and local laws, regulations, and codes.

"Cannabis" has the same meaning as that appearing in Business and Professions Code Section 26001. "Cannabis" means all parts of the plant cannabis sativa Linnaeus, cannabis indica, or cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

"Cannabis business permit" means a regulatory permit issued by the city pursuant to this chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the city.

"Cannabis business permittee" or "permittee" means a person or entity that has received a cannabis business permit from the city as authorized under this chapter.

"Cannabis product" has the same meaning as in Section 11018.1 of the Health and Safety Code. "Cannabis product" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

"City" means the city of Yreka, California.

"City manager" means the city of Yreka, city manager, or their designee.

"Commercial cannabis activity" has the same meaning as in Section 26001 of the Business and Professions Code. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products.

"Cultivation" has the same meaning as in Section 26001 of the Business and Professions Code. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

"Day care center" means a child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, or school age child care centers, and child care centers licensed by the California Department of Social Services.

"Delivery" shall have the same meaning as that appearing in Business and Professions Code Section 26001. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer.

"Dispense" means any activity involving the retail sale of cannabis or cannabis products from a retailer.

"Distribution" has the same meaning as in Section 26001 of the Business and Professions Code. "Distribution" or "distribute" means the procurement, sale, and transport of cannabis and cannabis products between licensees.

"Distribution" has the same meaning as in Section 26001 of the Business and Professions Code. "Distributor" means a cannabis business that is authorized to engage in the distribution of cannabis and cannabis products.

"Limited-access area" means an area in which cannabis is stored or held and is only accessible to a permittee and authorized personnel.

"Local agency" means county, city, or city and county.

"Manufacture" has the same meaning as in Section 26001 of the Business and Professions Code.

"Medicinal cannabis" or "medicinal cannabis product" means

(a) The same meaning as in Section 26001 of the Business and Professions Code, or

(b) Cannabis or a cannabis product, respectively, intended to be sold or donated for use:

(1) Pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician's recommendation, or

(2) In compliance with any compassionate use, equity, or other similar program administered by the city.

"Medicinal commercial cannabis activity" or "medical commercial cannabis activity" is commercial cannabis activity related to medicinal cannabis or medicinal cannabis product.

"Medicinal commercial cannabis business" or "medicinal cannabis business" means any business or operation which engages in medicinal or medical commercial cannabis activity authorized by this chapter.

"Medicinal non-storefront retailer (delivery only)" means a business premises that is not open for public access and provides medicinal cannabis and medicinal cannabis products to customers solely by means of a delivery service which the retailer owns and controls. The physical location and premises of the medicinal non-storefront retailer shall only be used for delivery purposes and be closed to public access.

"Owner" means any of the following:

(a) A person with an aggregate ownership interest of five percent or more in the cannabis business, unless the interest is solely a security, lien or encumbrance; or

(b) An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:

(1) A member of the board of directors of a nonprofit.

(2) A general partner of a cannabis business that is organized as a partnership.

(3) A nonmember manager or manager of a cannabis business that is organized as a limited liability company.

(4) The trustee(s) and all persons who have control of the trust and/or the cannabis business that is held in trust.

(5) An individual with the authority to provide strategic direction and oversight for the overall operations of the commercial cannabis business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.

(6) An individual with the authority to execute contracts on behalf of the cannabis business.

(c) When an entity or person is an owner in a cannabis business, all entities and individuals with a financial interest in the entity with aggregate ownership interest of five percent or more in the cannabis business shall be disclosed to the city and shall be considered owners of the cannabis business. The following shall be shall disclosed to the city and shall be considered owners of the cannabis business: chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or nonmember managers of the entity. Each person or entity disclosed as having a financial interest greater than five percent must disclose the identities of persons holding financial interests until only individuals remain as the names of disclosed parties, i.e., all members of an LLC/LLP/partnership, etc., shall be disclosed.

"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 acting as a unit.

"Physician's recommendation" has the same meaning as in Section 26001 "physician's recommendation" means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

"Premises" has the same meaning as in Section 26001 of the Business and Professions Code. "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises for purposes of this code shall be a contiguous area and shall only be occupied by one licensee.

"Retailer" or "storefront retailer" has the same meaning as "retailer" in Section 26001 of the California Business and Professions Code and shall mean any establishment which engages in the retail sale of cannabis at a fixed location. The definition of retailer or storefront retailer shall not include a properly permitted medicinal non-storefront retailer (delivery only) as defined in and properly operating under this chapter.

"State agency" includes every state office, officer, department, division, bureau, board and commission.

"State license" means any license required by the state of California for the operation of a cannabis business, including, but not limited to, licenses issued under Division 10 of the Business and Professions Code.

"Testing laboratory" means a laboratory, facility or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; and (2) licensed by the State Department of Cannabis Control.

"Youth center" means any public or private facility that is used for any of the following purposes:

(a) Public or private parks,

(b) Hosting recreation or social activities for minors, more than one hour per week,

(c) Licensed or unlicensed day care facilities for three or more children requiring a business license issued by the city,

(d) Private youth membership organizations or clubs,

(e) Social service teenage club facilities,

(f) Video arcades where ten or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or

(g) Amusement park facilities.

(Ord. No. 885, § 2, 10-21-2025)

This Chapter is adopted pursuant to the authority granted to the City by Section 7 of Article XI of the California Constitution, Sections 50022.1-50022.8 and 50022.10 of the California Government Code, Title 4, Division 19 of the California Code of Regulations, and the provisions of the MAUCRSA.

(Ord. No. 885, § 2, 10-21-2025)

Except as specifically authorized by this chapter and Chapter 16.100, commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution, or transportation, of cannabis or cannabis products is expressly prohibited in the city.

(Ord. No. 885, § 2, 10-21-2025)

It is the responsibility of the owners and/or operators of any commercial cannabis business within the city limits to ensure that they operate in a manner compliant with this chapter, all applicable state and local laws, and any regulations promulgated thereunder, including, but not limited to, the MAUCRSA.

(Ord. No. 885, § 2, 10-21-2025)

A. No person may engage in any cannabis business within the city, including cultivation, manufacture, processing, laboratory testing, distributing, dispensing, or sale of cannabis or a cannabis product, unless the person meets all of the following requirements:

1. Possess a valid cannabis business permit from the city;

2. Possess a valid business tax certificate from the city;

3. Possess a valid state of California seller's permit and all other applicable required licenses and permits from the state of California;

4. In compliance with this chapter and Chapter 16.100; and

5. Is currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis business and the cannabis activities, including the duty to obtain any required state licenses.

B. It shall not be a violation of this Code for an agent of a state agency, as defined in Section 1100 of the Government Code, or a local agency, as defined in Section 50001 of the Government Code, to possess, transport, or obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the state or local agency.

(Ord. No. 885, § 2, 10-21-2025)

A. Any person who is an owner or who otherwise works within a cannabis business must be legally authorized to do so under applicable state law.

B. Cannabis business owners and anyone who otherwise works within a cannabis business shall be required to:

1. Submit to a criminal background check by the Yreka police department for themselves.

2. Complete a criminal background check prior to issuance or transfer of a cannabis business permit.

C. The city shall conduct criminal background checks which must, at a minimum, identify the following:

1. Whether the owner has ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offense in other states;

2. Whether the owner has ever been convicted of a serious felony, as defined by California Penal Code 1192.7 or equivalent offense in other states;

3. Whether the owner has ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;

4. Whether the owner has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

5. Whether the owner has ever been convicted of a felony involving fraud, deceit, or embezzlement.

D. Evidence of a conviction of any the offenses enumerated in Section 5.30.070(C) of this Code shall be grounds for denial or revocation of a cannabis business permit, and/or employment with a cannabis business permittee in the City of Yreka.

(Ord. No. 885, § 2, 10-21-2025)

Any person is prohibited from holding or maintaining a cannabis business permit, or from being employed at a cannabis business, if any of the following apply:

A. A criminal background check demonstrates the applicant has committed any of the crimes identified in Section 5.30.070(C);

B. In the past five years, the applicant has been denied a state cannabis license or permit, or has had a cannabis license or permit suspended or revoked by any city, county, city and county or any other state cannabis licensing authority, except if a license or permit was denied due to the fact that a limited number of licenses or permits was issued by a local jurisdiction, or the denial was based on cannabis related criminal offenses that are no longer criminal offenses under California state law;

C. In the past five years, the applicant was notified by the state, county, or city that it was conducting commercial cannabis activity in violation of city ordinances, codes, and requirements, and failed to cure the violation in a timely manner;

D. Evidence that the applicant is delinquent in payment of federal, state, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;

E. The applicant is prohibited by state law from obtaining a state license or permit related to commercial cannabis; and

F. The applicant, or any of its officers, directors, owners, managers, or employees are under twenty-one years of age.

(Ord. No. 885, § 2, 10-21-2025)

This section is intended to create a maximum number and types of cannabis businesses that may be issued permits to operate in the city.

A. The following cannabis license types and maximum number are authorized to operate in the city of Yreka:

1. Medicinal non-storefront retailer (delivery only); Maximum number: Three.

B. Cannabis license types not identified in Section 5.30.090(A) are prohibited from obtaining a cannabis business permit in the city of Yreka.

C. No more than the number of permits identified in subsection A shall be issued without amendment of such subsection by the city council. Any permit issued in excess of the number of permits identified in this subsection without the formal revocation by city council of a previously-issued permit shall be null and void.

D. Social Equity Accommodations.

1. To promote equity and support communities disproportionately impacted by past cannabis enforcement policies, applicants qualifying as a social equity applicant, as defined Section 5.30.420 may request one of the following accommodations:

i. Fee waiver: waiver of application fee due pursuant to Section 5.30.120.C;

ii. Technical assistance: assistance from staff (up to three hours) to assist with filing an application required pursuant to Section 5.30.130; or

iii. Priority: advancing application in priority to first application reviewed, regardless of order in which application was submitted.

2. The following shall apply to applicants asserting social equity accommodation pursuant to [Section] 5.30.90.D.1:

i. Applications requesting social equity accommodation shall be considered in the order in which they are received;

ii. An applicant qualifying as a social equity applicant pursuant to Section 5.30.420 shall only be allowed one accommodation listed under Section 5.30.90.D.1;

iii. Request for accommodation pursuant to Section 5.30.90.D.1.i and iii shall be made at time of submission of application and qualifications for basis for consideration as a social equity applicant under Section 5.30.420 shall be made on the cover of the application, and shall be based on the information received at time of application. A request for technical assistance pursuant to Section 5.30.90.D.1.ii may be made prior to submission of application and reviewed for applicability by staff based on criteria in Section 5.30.420.

iv. Request pursuant to [Section] 5.30.90.D.1.iii shall be available only as to one unissued permit of those identified in Section 5.30.130.B.1. In the event that more than one request for priority based on social equity is made, the first applicant qualifying pursuant to Section 5.30.420 shall be given that priority. In the event that the number of permits identified in Section 5.30.130.B.1 is increased by future council action, the next qualified social equity applicant with an application still in filed shall be given priority for the first available permit in such increased number.

E. Modifications to the Number of Permits.

1. Each year following the city's initial award of permits, if any, or at any time in the city council's discretion, the city council may reassess the number of cannabis business permits which are authorized for issuance and make any changes by resolution. Any increase in the number of permits authorized under [Section] 5.20.090.C shall only be made by ordinance.

2. The city council, at its sole discretion, may determine that the number and/or types of cannabis business permits should remain the same or be modified. Any modification in the number or type of permits shall be made only by ordinance of the city council.

(Ord. No. 885, § 2, 10-21-2025)

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

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

B. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate by the city's risk manager.

C. Reimburse the city for all costs and expenses, including, but not limited to, legal fees and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's cannabis business permit or related to the city's approval of a cannabis activity. The city, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder.

(Ord. No. 885, § 2, 10-21-2025)

The city reserves the right to reject any or all applications for a cannabis business permit. Prior to permit issuance, the city may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the cannabis business permit program, or any particular category of permit potentially authorized under this chapter, may be cancelled at any time prior to permit issuance. The city further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to a failure to comply with other requirements in this chapter, an application may be rejected for any of the following reasons:

A. The application was received after the designated time and date of the deadline.

B. The application did not contain the required elements, exhibits, or was not organized in the required format.

C. The application did not provide all the information required in the permit application (i.e., was substantially incomplete).

D. The applicant did not comply with the requirements of this chapter.

(Ord. No. 885, § 2, 10-21-2025)

A. Following the effective date of this chapter, the city manager, pursuant to Section 5.30.350, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application procedure guidelines for the submission, intake, review, and approval of applications for cannabis operations up to the maximum number of cannabis business permits authorized in Section 5.30.090. Guidelines shall ensure that applications are considered in the order in which they are received, and that applications for social equity are considered in the order in which those are received.

No issuance of a permit shall be made until any application requesting priority for social equity submitted at that time has been evaluated.

B. The procedure guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.

C. At the time of filing, each applicant shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the application process.

D. Only one application shall be reviewed at a time in the order received, and a determination made as to its completeness and validity pursuant to this chapter.

(Ord. No. 885, § 2, 10-21-2025)

A. Application Submission and Processing.

1. The city shall award cannabis business permits on a first-come, first-served basis, subject to compliance with all applicable laws, regulations, and requirements set forth in this chapter.

2. The city shall begin accepting applications on a date and time established by the city manager or their designee, which shall be publicly noticed at least thirty days in advance.

3. Applications shall be deemed received based on the date and time they are submitted in full, including all required documentation and fees, as determined by the city.

4. Incomplete applications will not be considered. If an application is deemed incomplete, the applicant shall be notified and may resubmit, but the resubmission date will be used to determine placement in the queue.

B. Permit Allocation.

1. City shall review applications in the order received. City shall only review an application if a permit is available to be issued. The first three fully completed applications that meet all requirements shall be awarded permits. If a qualified application has been received requesting priority pursuant to Section 5.30.90.D.1.iii, it shall be reviewed before any other applications prior to issuance of the permits identified in this paragraph. Such priority shall not apply to award of any permit relinquished or abandoned pursuant to Section 5.30.190, unless that permit had been initially issued to an applicant pursuant to Section 5.30.90.D.1.iii.

2. If there are fewer than three qualified applicants, the city may keep any unallocated permits open for additional applications, review the total number of permits that should be issued, or reevaluate the application process as necessary.

3. After the final available permit is issued, all applicants remaining shall be notified that no further permits are available for issuance. Remaining applicants may choose to keep their application in order received or withdraw their application. If the applicant withdraws their application, the application fee shall be refunded. If the application is not withdrawn, the city will retain the application fee, and applicant shall be responsible for payment of any increase in the application fee within seven days of notice of their application being considered in the future due to a permit becoming available. Should the payment not be received in a timely manner, the application will be considered withdrawn at that time and the fee held on account shall be retained.

C. Application Review and Final Determination.

1. Applications will be reviewed in the order they are received to confirm compliance with all city requirements, including zoning, public safety, and operational regulations. Such requirements includes this chapter and Chapter 16.100. City shall only review an application if a permit is available to be issued

2. The city reserves the right to deny any application that does not meet legal requirements, public safety standards, or other conditions established by city ordinance.

3. If an application is denied, the applicant may appeal the decision pursuant to Section 5.30.210.

4. The ultimate number of permits shall not be issued until such time as the period to appeal by all denied applicants has lapsed or until the appeal of all denied applications on appeal is final, and any resultant legal action is resolved as to the number of permits at issue.

D. Application Submittal Requirements.

1. A person may apply for a cannabis business permit by filing an application with the planning department. The applicant must be an owner as defined in Section 5.30.020. The application must be on a form approved by the city manager. The application form must require all information or documentation consistent with the provisions of this chapter and state law, including, but not limited to, the following:

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

b. Name of the applicant and their respective contact information.

c. If applicable, business trade name, name of corporation, limited liability companies or limited partnership of the applicant as registered with the Secretary of State.

d. A description of the statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement.

e. The phone number and address to which notice of action on the application and correspondence is to be mailed.

f. The name, address, verified email, telephone number, title, and function of each of the owners.

g. The name, address, verified email, telephone number, title, and function of each of person responsible for operation of the business to cover twenty-four-hours per day, each day of the year.

h. Business Location.

i. The specific description of the proposed business location, including the street address, parcel number, and the total square footage of the site. Prior to submitting an application, the applicant must also obtain an approved zoning verification letter from the city's planning department to ensure the proposed location meets city zoning requirements, which shall be attached to the permit application. Such letter issued by the planning department shall be submitted by the applicant as part of the application. It is solely the responsibility of the applicant to zoning verification letter in a timely manner to include the zoning verification letter in their application.

ii. A premises diagram of the premises that meets the requirements of the Department of Cannabis Control Title 4, Division 19, § 15006 Premises Diagram.

iii. Proof of ownership, lease agreement, or a "letter of intent" to lease premises proposed by applicant for operation of a cannabis business, executed with notarial acknowledgement, by owner of premises.

iv. If the proposed location will be leased from the property owner, the applicant shall be required to provide a signed statement the owner of the property, acknowledging that the property owner has read this chapter and consents to the operation of the cannabis business on the owner's property.

i. A statement dated and signed by the applicant, under penalty of perjury, that the applicant has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the application has been completed under the applicant's supervision.

(Ord. No. 885, § 2, 10-21-2025)

A cannabis business permit shall be exercised within twelve months of receiving a permit. A cannabis business permit shall be considered exercised when the permittee is operational for and lawfully conducting business under the permit.

A. If the permittee fails to exercise a cannabis business permit within the timeframe established in Section 5.30.140(A), the city may revoke the permit and reallocate it to the next qualified applicant in the queue.

B. The city manager, in their sole discretion, may extend the timeframe established in Section 5.30.140(A) for up to a maximum of six months, if they determine that the applicant has made a good faith effort to exercise the cannabis business permit within the defined timeframe.

C. A permittee whose permit is revoked by the city council must reapply through the standard application process and will not receive priority based on prior approval.

(Ord. No. 885, § 2, 10-21-2025)

If the cannabis business has not been in regular and continuous operation in the preceding four months at the permitted location, the cannabis business permit shall be considered abandoned, unless mitigating circumstance occur which was beyond the control of the permittee and an extension has been authorized by the city manager. For purposes of this section, failure to be open for business at least ten percent of the days within the preceding four month period shall be evidence of failing to be in regular and continuous operation.

(Ord. No. 885, § 2, 10-21-2025)

All permits issued under the provisions of this chapter shall be effective for a period not to exceed one year from the date of issuance. The city manager may renew a permit through the procedures identified in Section 5.30.180 of this Code.

(Ord. No. 885, § 2, 10-21-2025)

A. An application for renewal of a cannabis business permit shall be filed by the cannabis business permittee at least thirty calendar days prior to the expiration date of the current permit.

B. The city manager, in their sole discretion, may extend the renewal period for up to a maximum of thirty days, if the permittee was operating in good standing as of the renewal deadline specified in Section 5.30.180(A).

C. Each application for renewal shall include updated information for any part of the application that has undergone a change in circumstance since the original application or last renewal filing and shall recertify all information submitted in prior application(s).

D. The applicant shall pay a fee in an amount to be set by the city council to cover the costs of processing the renewal permit application, together with any costs incurred by the city to administer the program created under this chapter.

E. An application for renewal of a cannabis business permit may be rejected if any of the following exists:

1. The application is filed less than thirty days before its expiration or a shorter time period which shall be at the discretion of the city manager.

2. The cannabis business permit is suspended or revoked at the time of the renewal application.

3. The cannabis business has not been in regular and continuous operation in the four months prior to the renewal application or the approved extension of the deadline from the city manager.

4. The department receives an application showing any change in ownership without having followed the transfer procedure as specified in Section 5.30.230.

5. The cannabis business has failed to conform to the requirements of the cannabis business permit or this chapter or any regulations adopted pursuant to this chapter.

6. The permittee has unpaid fees or fines issued by the city.

7. The permittee fails or is unable to renew its state of California license.

8. If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit.

F. The city manager is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the city manager is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety, or welfare. Appeals from the decision of the city manager shall be handled pursuant to this chapter.

(Ord. No. 885, § 2, 10-21-2025)

A. Cannabis business permits may be suspended, revoked, or modified for any violation of this chapter, any state or local laws, rules, and/or any standards, policies, procedures, or regulations adopted pursuant to this chapter relating to cannabis businesses.

B. When there is determined to be an imminent threat to public health, safety or welfare, the city manager may take immediate action to temporarily suspend a cannabis permit issued by the city.

C. A decision of the city to suspend, revoke or modify a cannabis permit is appealable as set forth in this chapter.

(Ord. No. 885, § 2, 10-21-2025)

A. Suspension of a license issued by the state of California, or by any of its departments or divisions, shall immediately suspend the cannabis business permit of the cannabis business. A permittee may not operate under a permit while it is suspended.

B. If the state of California or its respective department or division reinstates or reissues the state license, the cannabis business may seek reinstatement of its cannabis business permit if the business can demonstrate that the grounds for revocation of the license by the state no longer exist or that the underlying deficiency has otherwise been cured.

C. The cannabis business permittee subject to suspension shall inform the city of any suspension of a state license within ten days of the suspension. Failure to properly notify the city may be grounds for revocation.

D. Revocation or termination of a license issued by the state of California, or by any of its departments or divisions, shall immediately revoke or terminate the cannabis business permit of the cannabis business.

E. The cannabis business permittee subject to revocation or termination shall inform the city of any revocation or termination of a state license within ten days of the revocation or termination.

F. A cannabis business permittee may appeal the immediate revocation or termination of the cannabis business permit pursuant to Section 5.30.210 but may not operate pending the decision of the appeal.

(Ord. No. 885, § 2, 10-21-2025)

A. Appeals of the city manager decision regarding any of the following shall be appealable to the city council: (1) denial of advancement to submit a cannabis business permit application; (2) revocation or suspension of a permit; (3) denial of renewal of an application for a permit; or (4) additions of conditions to a permit. Any decisions of the city council pursuant to this chapter are final and conclusive.

B. Within ten calendar days after the date of a decision of the city manager to revoke, suspend or deny an initial or renewed permit application or to add conditions to a permit, an applicant or permittee may appeal such action by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper.

C. The written appeal shall be in writing and signed by the person making the appeal ("appellant"), or their legal representative, and shall contain the following:

1. Name, address, and telephone number of the appellant.

2. Specify decisions, actions, or a particular part thereof, made that are the subject of the appeal.

3. Include a true and correct copy of the decision issued by the city manager for which the appellant is appealing.

4. State with specificity the reasons and grounds for making the appeal, including, but not limited to, a statement of facts upon which the written appeal is based in sufficient detail to enable the city council to understand the nature of the controversy, the basis of the written appeal, and the relief requested.

5. All documents or other evidence pertinent to the written appeal that the appellant requests the city council to consider at the hearing.

6. Payment of the fee as established by resolution of the city council for such appeals.

D. Upon receipt by the city clerk of a timely filed written appeal, the city clerk shall forward such appeal to the city council, and shall schedule a hearing within thirty days, or as soon thereafter as is available, and shall notify the appellant of the date, time and location of the hearing.

E. Appellant and the city may mutually agree to a hearing date scheduled outside the thirty day period as long as both parties have agreed to this date in writing.

F. The city council shall hear and consider the testimony of the appellant, the city manager, and/or their witnesses, as well as any documentary evidence properly submitted for consideration. The following rules shall apply at the appeal hearing:

1. Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and relevant, collateral, undue, and repetitious testimony may be excluded.

2. The city manager bears the burden of proof to establish the grounds for the nonrenewal, suspension or revocation of a permit by a preponderance of evidence. Appellant bears the burden of proof regarding why they should have been allowed to apply for a cannabis business permit.

3. The issuance of the city manager's decision constitutes prima facie evidence of grounds for the denial, nonrenewal, suspension or revocation.

4. The city council may accept and consider late evidence not submitted initially with the decision of appeal upon a showing of good cause. The city council shall determine whether a particular fact or set of facts amount to good cause on a case-by-case basis.

5. The appellant may bring a language interpreter to the hearing at their sole expense.

6. The city may, at its discretion, record the hearing by stenographer or court reporter, audio recording, or video recording. If the appellant requests from the city that a court reporter, stenographer, or videographer be used, appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.

7. If the appellant, or their legal representative, fails to appear at the appeal hearing, the city council may cancel the appeal hearing and send a notice thereof to the appellant by certified, first-class mail to the address(es) stated on the notice of appeal. The cancellation of a hearing due to nonappearance of the appellant shall constitute the appellant's waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the city manager's decision is final and binding.

G. Following the conclusion of the city council hearing, the city council shall issue a written decision within thirty days that determines if the action appealed from is affirmed, modified, or overturned and specifies the reasons for the decision. The written decision of the city council shall provide that it is final and conclusive and is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6 for judicial review. A copy of the written decision shall be served by certified, first-class mail on the appellant. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the city pursuant to this chapter.

H. Failure of the city clerk to receive a timely appeal constitutes a waiver of the right to appeal the decision issued by the city manager. In this event, the city manager's decision shall be final.

I. In the event a written appeal is timely filed, the nonrenewal, suspension, or revocation of a permit shall not become effective until a final decision has been rendered and issued by the city council. Notices of appeal not served in a timely manner or served by a nonoperational business shall not serve to allow such business to operate pending appeal.

J. If no appeal is timely filed in the event of a decision of nonrenewal, the cannabis business's permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision supporting suspension or revocation, the suspension or revocation shall become effective upon the expiration of the period for filing a written notice of appeal.

(Ord. No. 885, § 2, 10-21-2025)

A. The location listed on the regulatory permit issued by the city is the only location from which business may be conducted within the city. Notwithstanding the foregoing or anything to the contrary in this chapter, "conducting business" shall not be interpreted to mean the exchange of products being delivered at the site of a customer within the city where such delivery is being made by a delivery service with a valid and properly issued city regulatory permit allowing such delivery.

B. If at any time, the business location from which business is being conducted as specified in the regulatory permit is conducted from another location, the permittee shall submit an updated application form to the city manager for approval prior to the change in location.

C. The request for approval of a change of location must be made, and must be granted by the city manager before the change of location or before the business may conduct business from a different location than what is stated on the current permit.

D. Failure to obtain a change of location pursuant to [Section] 5.30.220.C prior to engaging in business operations at another location shall be a forfeiture of an issued permit. The city council shall not have the ability to excuse an operator for operating at another location prior to obtaining a change of location pursuant to [Section] 5.20.220.C. The only issue for review by the city council for appeal of determination by city manager of such decision is whether the permittee was in fact not conducting business at another location prior to obtaining written approval by the city manager authorizing the requested change of location.

E. Each permit is valid only at the single location described on the permit. A permittee may not conduct business from a prior location not listed on a current permit but listed on a previous permit without a change of location being approved back to the former location under this process.

F. Failure to operate a business at a single location shall be grounds for immediate termination.

G. A permittee may not conduct business from multiple locations on a single permit. Council may not issue a single permit that has multiple locations without amending this chapter by ordinance. Council may not amend and existing permit to include an additional location to create a single permit with multiple locations without amending this chapter by ordinance. Council may not issue multiple permits of the same type at a single location without amending this chapter by ordinance.

H. The applicant shall pay a fee in an amount to be set by the city council to cover the costs of processing the updated application form.

(Ord. No. 885, § 2, 10-21-2025)

A. Besides premises location information for a current issued permit, a party shall within fifteen calendar days of any change in the information provided in the application, an issued permit, an updated application form or any change in status of compliance with the provisions of this chapter, including any change in the cannabis business ownership or management members, the applicant shall file an updated application form with the city manager for review along with an application amendment fee. The time period listed in this subsection does not apply to a change in information relating to change of location of business operations from the location listed on the current regulatory permit, which must be provided prior to change of location; the permission to operate from a different location shall be obtained prior to change of operation as required under [Section] 5.30.220.C.

B. For purposes of this section, the first day of the period indicated above shall be on the first full calendar day on which the change of information or change in status exists. The fifteenth day shall conclude at the close of business of the office of the city clerk for that day. In the event that such final day falls on a date on which the office of the city clerk is closed, due to weekend or legal holiday, or should the office of the city clerk not be open for any other reason through its normally established operating closing time., the deadline shall be extended through noon of the next business day which the office of the city clerk is open.

C. Failure to provide such information or failure to adhere to the time frames provided herein shall constitute a withdrawal of a pending application, and abandonment of existing permit. Upon determination that such situation exists, the city manager shall take action to prosecute appropriate process to complete amendment of status of the application or permit. Neither the city manager nor the city council shall have the ability to excuse an operator, permittee, applicant or any other person for failing to timely comply with the timeframe expressed herein for any reason without amendment of this ordinance.

(Ord. No. 885, § 2, 10-21-2025)

A. No request for transfer of ownership shall be granted prior to twenty-four months after the permittee has opened and continuously operated its commercial cannabis business where such ownership interest being transferred is based on that person having an aggregate ownership interest of twenty percent or more in the cannabis business.

B. The owner of a cannabis business permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the city manager stating that the transferee is now the permittee.

1. Such an amendment may be obtained only if the transferee files an application with the city manager in accordance with the provisions of this chapter (as though the transferee were applying for an original cannabis business permit).

2. The proposed transferee's application shall be accompanied by a transfer fee in an amount set by resolution of the city council (or if not set, shall be the same amount as the application fee).

3. For purposes of determining applicability of a transferee to assume an existing permit, the transferee's application will be reviewed based on the standard for a new application and will be evaluated according to standards under this chapter and those procedures adopted pursuant to Section 5.30.120.

C. Cannabis business permits issued through the granting of a transfer by the city manager shall be valid for the remainder of the term of the permit, until the date of required permit renewal, beginning on the day the city manager approves the transfer of the permit.

D. Before the transferee's permit expires, the transferee must apply for a renewal permit and pay the appropriate fee in the manner required by this chapter.

E. A cannabis business permit shall not be transferred when the city has notified the permittee in writing that the permit has been or may be suspended or revoked.

F. Any attempt to transfer a cannabis business permit either directly or indirectly in violation of this section is hereby declared a violation of the permit and this chapter. Such a purported transfer shall be deemed grounds for revocation of the permit.

(Ord. No. 885, § 2, 10-21-2025)

Prior to commencing operations, a cannabis business shall obtain a city of Yreka business license pursuant to Chapter 5.04 of the Yreka Municipal Code.

(Ord. No. 885, § 2, 10-21-2025)

Prior to commencing operations, a cannabis business permittee shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes, but is not limited to, obtaining any required building permit(s), fire department approvals, police department approval, code enforcement; planning, and health department approvals, and any other applicable zoning and land use permit(s) and approvals.

(Ord. No. 885, § 2, 10-21-2025)

Prior to the city's issuance of a cannabis business permit pursuant to this chapter, any person intending to open and to operate a cannabis business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location. If the proposed location will be leased from the property owner(s), the applicant shall be required to provide a signed and notarized statement from the owner(s) of the property, acknowledging that the property owner has read this chapter and consents to the operation of the cannabis business on the owner's property.

(Ord. No. 885, § 2, 10-21-2025)

A. For zoning and land use purposes, medicinal non-storefront retailer businesses shall be considered a "retail use" and shall be permitted in any zoning district where general retail uses are allowed.

B. Cannabis businesses shall not be permitted as a home occupation under any circumstances.

C. A cannabis business must meet land use and building standards pursuant to Title 16 of this Code, including:

1. Conform with the city's general plan, any applicable specific plan, master plan, and design requirements.

2. Comply with all applicable zoning and related development standards.

3. Be constructed in a manner that minimizes odors to surrounding uses.

D. A cannabis business must meet the following rules relating to proximity to sensitive uses:

1. The use shall be no closer than six hundred feet from any parcel in the city designated as a sensitive use under this section that is in existence at the time the permit is issued.

2. The distance shall be determined by the horizontal distance measured in a straight line from the closest property line of the sensitive use to the closest property line of the lot on which the cannabis business is to be located, without regard to intervening structures.

3. Sensitive uses include:

a. A school providing instruction in kindergarten or any grades one through twelve, (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12).

b. A commercial daycare center licensed by the state, county or city.

c. A youth center.

(Ord. No. 885, § 2, 10-21-2025)

Prior to commencing operations, a cannabis business must obtain authorization from the city manager certifying that the business is located on a site that meets all of the requirements of Sections 5.30.250 through 5.30.290, and 5.30.310 through 5.30.360 of this Code.

(Ord. No. 885, § 2, 10-21-2025)

A. Each owner and operator of a cannabis business shall maintain accurate books and records in an accessible, electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities for a period not less than seven years.

B. On no less than an annual basis (at or before the time of the renewal of a cannabis business permit issued pursuant to this chapter), or at any time upon reasonable request of the city, each cannabis business shall file a sworn statement detailing the number and amount of sales by the cannabis business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and/or fees paid or due to be paid.

C. On an annual basis, each owner and operator shall submit to the city a financial audit of the business's operations conducted by an independent certified public accountant paid for by permittee. Each permittee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the city.

D. Each owner and operator of a cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis business. The register required by this paragraph shall be provided to the city manager upon request within forty-eight hours of the request.

E. All cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the production process until purchased as set forth in the MAUCRSA.

(Ord. No. 885, § 2, 10-21-2025)

A. Cannabis businesses shall operate in a manner that minimizes public visibility and does not draw unnecessary attention to the nature of the business.

B. A cannabis business permittee shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the cannabis business. Except as may otherwise be determined by the city manager, these security measures shall include, but shall not be limited to, all of the following:

1. Exterior lighting systems for after-hours security as approved by the chief of police and/or the city manager where applicable.

2. Preventing individuals from remaining on the premises of the cannabis business if they are not engaging in an activity directly related to the permitted operations of the cannabis business. In cases in which the individual will not voluntarily leave the premises, the cannabis employee shall contact the police department.

3. Establishing limited access areas accessible only to authorized cannabis business personnel.

4. Each cannabis business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees.

5. Installation of cameras that meet the following:

a. 24-hour security surveillance cameras of at least high-definition (HD) quality to monitor all entrances and exits to and from the premises, all interior spaces within the cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash, or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color.

b. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions.

c. Video recordings shall be maintained for a minimum of ninety days and shall be made available to the chief of police upon request.

d. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis business and shall be capable of enlargement via projection or other means.

e. Internet Protocol address information shall be provided to the police department by the cannabis business, to facilitate remote monitoring of security cameras by the department or its designee.

f. Each business shall have network security protocols that are certified by underwriters laboratories.

6. A professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services is required.

7. Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.

8. Panic buttons shall be installed in all cannabis businesses with direct notification to the police department dispatch and shall be configured to immediately alert dispatch for the police department.

9. Any security measures, such as bars, installed on the windows or the doors of the cannabis business shall be installed only on the interior of the building and shall not be visible om the public right-of-way.

10. Security personnel shall be on-site during business hours. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager, with such approval not to be unreasonably withheld.

11. Each cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

12. Each cannabis business shall implement an accounting software system that provides point-of-sale data and audit trails for both products and cash transactions, where applicable.

13. Each cannabis business shall demonstrate to the city manager or their designees, compliance with the state's track and trace system for cannabis and cannabis products.

14. Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises.

15. Emergency access and emergency evacuation plans that are in compliance with state and local fire safety standards shall be maintained to state standards and readily available to all employees onsite.

C. Security Representative/Liaison.

1. Each cannabis business shall identify a designated security representative/liaison to the city, who shall be reasonably available to meet with the city manager regarding any security related measures and/or operational issues.

2. The security representative/liaison shall be capable of operating the cannabis business security surveillance system and providing video recordings to the police department upon request, pursuant to Section 5.30.310(A)(4) of this Code.

3. The designated security representative/liaison shall, on behalf of the cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the city manager upon request that meets the following requirements:

a. Confirms that a designated manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.

b. Identifies all managers of the cannabis business and their contact phone numbers.

c. Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager's office.

d. Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company twenty-four hours a day, seven days a week, and provides contact information for each licensed security company.

e. Identifies a sufficient number of licensed, interior, and exterior security personnel who will monitor individuals inside and outside the cannabis business, the parking lot, any adjacent property under the business' control, and ensure that the parking lot is cleared of employees and their vehicles one-half hour after closing.

D. As part of the application and licensing process each cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.

E. The cannabis business shall cooperate with the city whenever the city manager makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this chapter.

F. A cannabis business shall notify the city manager within twenty-four hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city manager.

2. Diversion, theft, loss, or any criminal activity involving the cannabis business or any agent or employee of the cannabis business.

a. The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the cannabis business.

b. Any other breach of security.

G. Compliance with the foregoing requirements shall be verified by the city manager prior to commencing business operations. The city manager may supplement these security requirements once operations begin, subject to review by the city manager if requested by the business owner.

(Ord. No. 885, § 2, 10-21-2025)

A. Cannabis businesses shall operate in compliance with Division 10 of the Business and Professions Code, as may be amended under state law.

B. Cannabis businesses may operate only during the hours specified in the Section 5.30.330(C).

C. Restriction on Sales and Consumption. Cannabis shall not be consumed by any person on the premises of any cannabis business. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis business.

D. No outdoor storage of cannabis or cannabis products is permitted at any time.

E. Reporting and Tracking of Product and of Gross Sales. Each cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale). The cannabis business shall provide this information to the city upon request, in the format defined by the city. In addition, the system must have the capability to produce historical transactional data for review.

F. All cannabis and cannabis products sold, distributed, or held shall be cultivated, manufactured, and transported by state licensed facilities that maintain operations in full conformance with the state and local regulations.

G. Emergency Contact. Each cannabis business shall provide the city manager with the name, telephone number (both land line and mobile, if available) of an employee or owner to whom emergency notice can be provided at any hour of the day.

H. Signage and Notices.

1. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a cannabis business permit, or on any of the vehicles owned or used as part of the cannabis business.

2. In addition to the requirements otherwise set forth in this section, business identification signage for a cannabis business shall conform to the requirements Title 13 Signs and are required to obtain all sign permits as required.

3. Each entrance to a cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the cannabis business is prohibited.

I. Minors.

1. Persons under the age of twenty-one years shall not be allowed on the premises of a cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this chapter for any person to employ any person at a cannabis business who is not at least twenty-one years of age.

2. The entrance to the cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one years of age is permitted to enter upon the premises of the cannabis business.

J. Odor Control.

1. Odor control devices and techniques shall be incorporated in all cannabis businesses to ensure that odors from cannabis are not detectable off-site.

a. Cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis business.

b. Cannabis businesses must install and maintain the following equipment, or any other equipment which the city or their designee(s) determine is a more effective method or technology:

i. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

ii. An air system that creates negative air pressure between the cannabis business's interior and exterior, so that the odors generated inside the cannabis business are not detectable on the outside of the cannabis business.

K. Display of Permit and City Business Tax Certificate. The original copy of the cannabis business permit issued by the city pursuant to this chapter and the city issued business tax certificate shall be posted inside the cannabis business in a location readily visible to the public.

L. Loitering.

1. The owner and/or operator of a cannabis business shall prohibit loitering by persons outside the facility on the premises.

2. The cannabis business shall notify the police department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner.

M. Permits and Other Approvals. Prior to the establishment of any cannabis business or the operation of any such business, the person intending to establish a cannabis business must first obtain all applicable planning entitlements, building permits, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis business intends to establish and to operate pursuant to Section 5.30.280 and all applicable requirements in this chapter.

(Ord. No. 885, § 2, 10-21-2025)

A. Medicinal non-storefront retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen years and shall confirm the customer's possession of a valid doctor's recommendation and/or Health and Safety Code Section 11362.71 identification card (medical cannabis card).

B. Prior to providing medicinal cannabis goods to a delivery customer, operators are required to verify the age and the necessary documentation of each customer. They must ensure that medicinal cannabis customers are at least eighteen years of age and verify that the customer has a valid doctor's recommendation. Sales shall only be made to persons matching these criteria.

C. Retail delivery services shall be limited to the hours of eight o'clock a.m. through eight o'clock p.m., seven days a week.

D. Prior to commencing delivery operations, a medicinal non-storefront retailer shall provide the following information to the city:

1. Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

2. The year, make, model, color, license plate number, and numerical vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

3. Proof of insurance as required in Section 5.30.290B) for any and all vehicles being used to deliver cannabis goods.

4. The permittee shall provide the city with the information required by this section in writing for any new vehicle that will be used to deliver cannabis goods prior to using the vehicle to deliver cannabis goods.

5. The permittee shall provide the city with any changes to the information required by this section in writing within thirty calendar days.

E. Permissible Delivery Locations and Customers.

1. A permitted cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

2. A permitted cannabis business shall comply with all requirements of state and local law pertaining to the cannabis business permit and all subsequent policies, procedures and regulations which may be amended by the city manager from time to in order to enforce this chapter.

3. A permitted cannabis business shall only deliver to legally existing residential structure with a valid address recognized by the United States Postal Service.

F. Authorized Sales.

1. A medicinal non-storefront retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least eighteen years of age, if those individuals are in possession of a valid physician's recommendation.

G. Limited Access Areas.

1. A medicinal non-storefront retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas.

2. Authorized individuals include individuals employed by the medicinal non-storefront retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area.

3. All individuals granted access to the limited access area shall be at least twenty-one years of age, and if not employed by the medicinal non-storefront retailer, shall be escorted at all times by an employee of the permittee.

4. A medicinal non-storefront retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the city manager, chief of police, or their designees upon request.

5. No more than the number of medicinal non-storefront retailer adopted by council resolution may operate within the city at any one time and shall be issued a permit by the city.

H. Medicinal non-storefront retailer authorized to conduct retail activities shall only serve customers who are at a delivery address that meets the requirements of this chapter.

(Ord. No. 885, § 2, 10-21-2025)

A. In addition to any regulations adopted by the city council, the city manager is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of cannabis business permits, the ongoing operation of cannabis businesses and the city's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

B. Such regulations shall be published on the city's website.

C. Regulations promulgated by the city manager shall become effective upon the date of publication. Cannabis businesses shall be required to comply with all state and local laws and regulations, including, but not limited to, any rules, regulations or standards adopted by the city manager.

(Ord. No. 885, § 2, 10-21-2025)

A. No person may commence or continue any cannabis activity in the city, without timely paying in full all fees and charges required for the operation of a cannabis business. Fees and charges associated with the operation of a cannabis activity shall be established by resolution of the city council which may be amended at the council's discretion.

B. All cannabis businesses authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, permit, registration, and other fees required under federal, state, and local law. Each cannabis business shall cooperate with the city with respect to any request to audit the cannabis business' books and records for the purpose of verifying compliance with this section, including, but not limited to, a verification of the amount of taxes or fees required to be paid during any period.

(Ord. No. 885, § 2, 10-21-2025)

The amount of any fee, cost or charge imposed pursuant to this chapter shall be deemed a debt to the city that is recoverable via an authorized administrative process as set forth in the city ordinance or in any court of competent jurisdiction.

(Ord. No. 885, § 2, 10-21-2025)

The person to whom a permit is issued pursuant to this chapter shall be responsible for all violations of the laws of the state of California or of the regulations and/or the ordinances of the city, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the cannabis business whether or not said violations occur within the permit holder's presence.

(Ord. No. 885, § 2, 10-21-2025)

A. The city manager who is charged with enforcing the provisions of the city of Yreka Municipal Code, or any provision thereof, may enter the location of a cannabis business at any time, without notice, and inspect the location of any cannabis business as well as any recordings and records which may include access to point-of-sale and/or METRC data required to be maintained pursuant to this chapter or under applicable provisions of state law.

B. It is unlawful for any person having responsibility over the operation of a cannabis business, to impede, obstruct, interfere with, or otherwise not to allow the city to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business under this chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this chapter or under state or local law.

C. The city manager, who is charged with enforcing the provisions of this chapter may enter the location of a cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of Yreka shall be logged, recorded, and maintained in accordance with established procedures by the City of Yreka's city manager or these regulations.

(Ord. No. 885, § 2, 10-21-2025)

Each and every violation of the provisions of this chapter constitutes a misdemeanor and is hereby deemed unlawful and a public nuisance. The city reserves the right to pursue any available legal remedy to address violations of this chapter.

(Ord. No. 885, § 2, 10-21-2025)

No person(s) (including any applicant, owner, and/or permittee) shall have any vested rights to any permit, right, and/or interest under this chapter, regardless of whether such person(s) sold, distributed, and/or otherwise engaged in acts related to the use of cannabis prior to the adoption of the ordinance codified in this chapter.

(Ord. No. 885, § 2, 10-21-2025)

A. To be eligible as an equity applicant, an individual shall satisfy the following criteria:

1. The applicant or their immediate family member (parent, sibling, spouse, or child), was arrested for, convicted of, or adjudged to be a ward of the juvenile court for a cannabis-related offense under the laws of California or any other jurisdiction prior to November 8, 2016.

2. In the last year, have had a household income at or below sixty percent of the Siskiyou County Area Median Income (AMI) adjusted for family size or you're eligible to get financial aid through a program like:

a. CalFresh.

b. MediCal.

c. CalWORKS.

d. Supplemental security income.

e. Social Security disability.

B. To be eligible for a cannabis business permit as an equity applicant, at least fifty percent of the business must be owned by individuals who meet the equity applicant eligibility criteria outlined in Section 5.30.420(A).

(Ord. No. 885, § 2, 10-21-2025)