4-35
CANNABIS RETAILERS:
4-35.1 Cannabis Retailers Prohibited Unless Specifically Authorized:
a. Except as specifically authorized by this section 4-35, to the fullest extent permitted by state law, the city expressly prohibits any and all cannabis retailers within the city.
b. Nothing in this section 4-35 shall be construed or interpreted to permit the commercial possession, furnishing, manufacture, cultivation, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of industrial hemp.
c. To the extent expressly authorized in this section 4-35, cannabis retailers are permitted in the city, subject to the satisfaction of all requirements set forth in this section 4-35, MAUCRSA, and all other applicable state and local laws, rules, and regulations. (Ord. #1751, §4)
4-35.2 Compliance With Laws:
It is the responsibility of the owners, managers, officers, employees, and agents of any cannabis retailer to ensure that it is operating in a manner compliant with all applicable state and local laws and any regulations promulgated thereunder. Nothing in this section 4-35 shall be construed as in conflict with state law. (Ord. #1751, §4)
4-35.3 Definitions:
When used in this section 4-35, the following words shall have the meanings ascribed to them as set forth herein. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this code or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to state statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision.
Applicant means the person applying for the retail cannabis business permit under this section 4-35 (not the owners or the managers of the applicant).
Cannabis has the same meaning as defined in section 4-34.
Cannabis concentrate means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this section 4-35. A cannabis concentrate is not considered food, as defined by section 109935 of the state Health and Safety Code, or drug, as defined by section 109925 of the state 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.
Cannabis retailer or retailer or dispensary means a location where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including a cannabis retailer establishment that delivers cannabis and cannabis products.
Caregiver or primary caregiver has the same meaning as that term is defined in section 11362.7 of the state Health and Safety Code.
City means the city of Lynwood.
City attorney means the city attorney of the city of Lynwood or his or her designee(s).
City council means the city council of the city of Lynwood.
City manager means the city manager of the city of Lynwood or his or her designee(s).
Commercial cannabis activity has the same meaning as defined in section 4-34.
Commercial cannabis business has the same meaning as defined in section 4-34.
County means the county of Los Angeles.
Customer means a natural person twenty-one (21) years of age or over or a natural person eighteen (18) years of age that is a qualified patient or primary caregiver.
Day care center or childcare facility means a facility, other than a family day care home, serving infant, toddler, preschool, and school age children, licensed by the state Department of Social Services pursuant to section 1596.951 of the state Health and Safety Code. Pursuant to the authority delegated by the state to the city under section 26054(b) of the state Business and Professions Code, this definition of “day care center” under this section 4-35 shall override the definition of “day care center” in MAUCRSA at section 26001 of the state Business and Professions Code.
Delivery has the same meaning as defined in section 4-34.
Edible cannabis product means a cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with section 32501) of the state Food and Agriculture Code. An edible cannabis product is not considered food, as defined by section 109935 of the state Health and Safety Code, or drug, as defined by section 109925 of the state Health and Safety Code. An edible cannabis product shall not be deemed to be adulterated pursuant to section 26131 of the state Business and Professions Code solely because it contains cannabis.
Employee means each natural person employed by a cannabis retailer who is a part-time, full-time, temporary, or permanent employee.
Gross receipts means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, wares, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest paid or payable, losses, or any other expense whatsoever.
However, the following shall be excluded from gross receipts:
a. Cash discounts where allowed and taken on sales;
b. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
c. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
d. Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business;
e. Cash value of sales, trades, or transactions between departments or units of the same business;
f. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar ($1.00); and
g. Any proceeds resulting from a transfer or change of ownership or control in the business.
Labor peace agreement means an agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the city’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis retailer’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment.
Licensing authority means a state agency responsible for the issuance, renewal, or reinstatement of state license, or a state agency authorized to take disciplinary action against a state licensee.
Liquid assets means assets that can be readily converted into cash. Liquid assets include, but are not limited to, the following: funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. Liquid assets does not mean household items, furniture and equipment, vehicles, cannabis or cannabis products, business inventory, or real property and improvements thereto.
Manager means any individual who will be participating in the direction, control, or management of an applicant or a permittee, including, but not limited to, any (a) manager or managing member or other officer of a limited liability company applicant or permittee or (b) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation applicant or permittee.
Marijuana means “cannabis” as that term is defined in this section 4-35.
MAUCRSA means Division 10 (commencing with section 26000) of the state Business and Professions Code and any regulations promulgated thereunder.
Ordinance means the Lynwood cannabis retail sales regulation and public safety ordinance.
Owner means any of the following:
a. A person owning in the aggregate equity interests representing twenty percent (20%) or more of the voting power of all outstanding equity in the applicant or a permittee;
b. The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or
c. A member of the board of directors of a nonprofit applicant or permittee.
Notwithstanding the above, every applicant and permittee must have at least one individual person designated as an “owner” for the purpose of compliance with this section 4-35, including the review and evaluation of any retail cannabis business permit application.
Panic button means an emergency electronic contact device which allows an employee in the event of an ongoing crime, threat, or other emergency to alert a security guard responsible for providing immediate on-scene assistance.
Patient or qualified patient means a natural person who is entitled to the protections of section 11362.5 of the state Health and Safety Code and includes a person issued an identification card issued pursuant to Article 2.5 of Chapter 4-35 of Division 10 of the state Health and Safety Code.
Permittee means the holder of a valid, city-issued retail cannabis business permit.
Person means an individual/natural person, 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 and includes the plural as well as the singular number.
Person with an identification card shall have the meaning given to that term in section 11362.7 of the state Health and Safety Code.
Premises means the designated structure or structures and land specified in the retail cannabis business permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where cannabis retail sales will be or are conducted. The premises shall be a contiguous area and shall only be occupied by one permittee.
Public park means an outdoor premises containing existing or proposed parks, including community parks, neighborhood parks, mini-parks, and urban parks that are currently or proposed to be owned or operated by the city or other governmental agency. “Public park” shall not include any youth center.
Retail cannabis business permit means a regulatory permit/license issued by the city pursuant to this section 4-35 to a cannabis retailer and is required before any cannabis retail sales may be conducted in the city and is made expressly contingent upon the cannabis retailer’s ongoing compliance with all of the requirements of this section 4-35 and any regulations adopted by the city governing cannabis retail sales.
Retail sale(s) or dispensing means any activity involving the retail sale of cannabis or cannabis products from a retailer.
Sale means any sale, exchange, or barter or other transaction for any consideration.
School means, as evidenced by the state Department of Education school directory, a public school instructing children in grades kindergarten through twelve (12), as authorized by the state Department of Education or a private school instructing children in grades kindergarten through twelve (12) that has filed a verification of private school affidavit with the state Department of Education pursuant to section 33190 of the state Education Code, excluding any private school in which education is primarily conducted in a private home. Pursuant to the authority delegated by the state to the city under section 26054(b) of the state Business and Professions Code, this definition of “school” under this section 4-35 shall override the definition of “school” used in MAUCRSA or section 11362.768 of the Health and Safety Code.
State means the state of California.
State license means a permit or license issued by the state, or one of its departments or divisions, under MAUCRSA and any subsequent state legislation regarding the same to engage in cannabis retail sales.
Topical cannabis means a cannabis product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by section 109925 of the state Health and Safety Code.
Youth center means any facility that is operated by a public agency or nonprofit entity with the sole purpose of providing educational and/or recreational services to minors. “Youth center” shall not include (a) any public park, (b) any private martial arts, yoga, ballet, music, or similar studio of this nature, or (c) any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor’s office primarily serving children. Pursuant to the authority delegated by the state to the city under section 26054(b) of the state Business and Professions Code, this definition of “youth center” under this section 4-35 shall override the definition of “youth center” in MAUCRSA at section 26001 of the state Business and Professions Code. (Ord. #1751, §4)
4-35.4 Retail Cannabis Business Permit Required:
a. No person shall operate a cannabis retailer or engage in cannabis retail sales within the city unless such business or activity is currently in compliance with all applicable state and local laws, rules, and regulations and the cannabis retailer has all of the following:
1. A valid city business license to conduct such business or activity;
2. A valid retail cannabis business permit issued by the city pursuant to this section 4-35 to conduct such business or activity;
3. A valid state license authorizing such business or activity in the city; and
4. A valid certificate of occupancy issued by the city’s building and safety division to conduct the cannabis retail sales at the premises identified in the retail cannabis business permit. (Ord. #1751, §4)
4-35.5 Number of Authorized Cannabis Retailers Permitted:
a. The city council may award up to six (6) retail cannabis business permits within the city.
b. Nothing in this section 4-35 creates a mandate that the city must authorize any specific number of retail cannabis businesses permits. The city reserves the discretion to determine that it is in the best interest of the city to not issue the full number of retail cannabis business permits authorized in this subsection 4-35.5 or to reduce the number of retail cannabis business permits authorized in this subsection 4-35.5. However, the city may not increase the number of retail cannabis business permits authorized in this subsection 4-35.5, except as required by (1) a judicial remedy or (2) a vote of the people of the city. (Ord. #1751, §4)
4-35.6 Location And Design Requirements For Cannabis Retailers:
Pursuant to the authority delegated by the state to the city under section 26054(b) of the state Business and Professions Code and overriding the location and design requirements contained in section 26054(b) of the state Business and Professions Code, cannabis retailers in the city shall be subject to the following location and design requirements:
a. Cannabis retailers shall be a permitted use subject to this section 4-35 on property (1) located more than six hundred fifty feet (650') from any school or day care center, (2) located more than nine hundred fifty feet (950') from any public park or youth center, and (3) zoned: C-2A (medium commercial district), C-3 (heavy commercial district), or M (manufacturing district), including any overlay zones, in particular any SPA (specific plan area) covering the C-2A (medium commercial district), C-3 (heavy commercial district), or M (manufacturing district).
b. The distances specified in this subsection 4-35.6 shall be the horizontal distance measured in a straight line from the parcel line of the sensitive use to the closest parcel line of the lot on which the cannabis retailer is to be located without regard to intervening structures.
c. Each cannabis retailer shall:
1. Be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties. Odors from the cannabis retailer shall not be detectable from outside the premises and adequate odor control technology shall be utilized;
2. Be provided with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for the intended purpose; and
3. Provide and maintain a neighborhood compatibility plan so the city manager or designee(s) may find that the cannabis retailer and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance. (Ord. #1751, §4)
4-35.7 Cannabis Retailer Application Procedure:
a. The city manager, pursuant to subsection 4-35.22, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers up to the number of retail cannabis business permits authorized in subsection 4-35.5.
b. The city manager shall, as a ministerial duty, cease acceptance of retail cannabis business permit applications thirty (30) days after making available the necessary forms and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers.
c. The city manager shall, as a ministerial duty, review timely submitted retailer applications for the following minimum requirements:
1. Payment of a nonrefundable application fee established by resolution of the city council;
2. Sufficient evidence of the legal right to use the proposed property for the proposed use, to include ownership, a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a retail cannabis business permit or other approvals. The city shall only consider one applicant per county assessor’s identification number. In the event that more than one applicant applies for a retail cannabis business permit application at a given property address or a given county assessor’s identification number, the city manager shall, as a ministerial duty, only accept the retail cannabis business permit application with the earliest effective date for the evidence of the legal right to use the proposed property for the proposed use in the name of the applicant;
3. Sufficient evidence to demonstrate that the proposed property complies with location and zoning requirements in subsection 4-35.6;
4. Proof of funds showing that the applicant has access and control of over one million dollars ($1,000,000.00) in liquid assets (which such liquid assets having been under possession for at least ninety (90) days prior to the date of the application submission under this section), which may be shown via a binding legal agreement in the name of the applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement so long as that demonstrates access and control of over one million dollars ($1,000,000.00) in liquid assets under possession for at least ninety (90) days prior to the date of the application submission under this section. Applicants and permittees shall not be required to show that the applicant or permittee has access and control of over one million dollars ($1,000,000.00) in liquid assets except on initial application pursuant to this subsection 4-35.7, a change in location application pursuant to subsection 4-35.13, or an ownership transfer application pursuant to subsection 4-35.14;
5. A set of plans, including a site development plan, floor plan(s), building elevations (all four (4) sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;
6. Colored interior and elevation renderings;
7. A completed background check application and receipt for each owner and manager of the applicant pursuant to subsection 4-35.18l; and
8. The following application components: (a) qualifications of the applicant’s owners and managers; (b) business and operations plan; (c) security plan; (d) safety plan; (e) neighborhood compatibility plan; (f) labor and employment plan; and (g) community benefits plan.
The city manager shall, as a ministerial duty, reject any retail cannabis business permit application that fails to meet the minimum requirements contained in this subsection 4-35.7c, and applicants shall not have the right to supplement or amend their retail cannabis business permit applications once the city manager has closed the window to submit an application.
d. The City Manager shall, as a ministerial duty, review and score any complete applications pursuant to the following objective review criteria, according to the following quantitative evaluation scale that holds a total criteria value of one thousand (1,000) points:
1. Qualifications of the applicant’s owners and managers – two hundred (200) points.
The city council finds that a proven track-record of (a) business operations providing services or operating in the city or (b) cannabis retailer operations experience, wherever performed, that successfully generate tax revenue carries out the purpose and intent of this section and are, therefore, critical for an applicant to demonstrate the qualifications of the applicant’s owners and managers. Accordingly, one hundred fifty (150) of the two hundred (200) points awardable under this subsection 4-35.7d1 shall only be awarded, as a ministerial duty, (1) if an owner or owners of the applicant with an aggregate ownership interest of fifty-one percent (51%) or more is currently at the time of application submission under this section and since at least February 1, 2020, the president, CEO, or limited liability company manager of a business that provides (or has provided) services or operates (or has operated) in the city and that has generated at least eight million dollars ($8,000,000.00) in annual gross receipts as demonstrated by the most recent tax payment receipts from, tax filings to, or tax returns filed by the business with a city, county, state, or the federal government or by a letter from a certified public accountant attesting to the business’s gross receipts or (2) if an owner or owners of the applicant with an aggregate ownership interest of fifty-one percent (51%), is currently at the time of application submission under this section an owner or owners with an aggregate ownership interest of fifty-one percent (51%) of (or is an owner as a result of being the chief executive officer of a nonprofit entity of) a single licensed and lawfully operating commercial cannabis retailer operation (excluding any nonretailer microbusiness, cultivation, manufacturing, distribution, or other nonretailer commercial cannabis operation components) that has generated at least five million dollars ($5,000,000.00) in gross receipts in a consecutive six (6) month period in the year immediately preceding the date of the application submission under this section, as demonstrated by tax payment receipts from, tax filings to, or tax returns filed with a city, county, or state or by a letter from a certified public accountant attesting to the cannabis retailer’s gross receipts.
The remaining one hundred (100) of the two hundred (200) points awardable under this subsection 4-35.7d1 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to fifty (50) points. A description of the applicant’s owner(s) and manager(s) qualifications detailing any experience operating cannabis retailers in any jurisdiction where cannabis retailers are permitted or special business or professional qualifications or licenses of the applicant’s owner(s) and manager(s) that would add to the quality of services that the cannabis retailer would provide, including in areas related to cannabis, such as legal, finance, business ownership/administration, waste management, real estate development, scientific, or healthcare or wellness fields.
2. Plans, renderings, and overall location – one hundred fifty (150) points.
The city council finds that the further a cannabis retailer is located away from youth centers, the better a cannabis retailer will carry out the purpose and intent of this section (in particular the use of land to protect the city’s neighborhoods, residents, and businesses from negative impacts) and that the sensitive use buffer for youth centers contained in subsection 4-35.6 is a minimum rather than an ideal distance to carry out the purpose and intent of this section. Accordingly, seventy-five (75) of the one hundred fifty (150) points awardable under this subsection 4-35.7d2 shall only be awarded, as a ministerial duty, if an applicant’s proposed cannabis retailer is located on property located more than one thousand five hundred feet (1,500') from any youth centers identified and measured pursuant to subsection 4-35.6 and section 14 of the Ordinance.
The remaining seventy-five (75) of the one hundred fifty (150) points awardable under this subsection 4-35.7d2 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to ten (10) points – A premises diagram in accordance with section 5006 of Division 42 of Title 16 of the state Code of Regulations.
(b) Up to ten (10) points – A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in chapter 25, including adequate parking. Information on existing conditions shall include:
(1) Exterior photographs showing all sides of any existing structure(s);
(2) Photographs of existing parking areas, landscaping, trash enclosure, and signage;
(3) Information on existing use on the site, including the addresses, uses, and square footages.
(4) Photographs of the existing site if the site is vacant; and
(5) Photographs of adjacent properties for context.
(c) Up to fifteen (15) points – A floor plan showing information on the existing layout and proposed layout of the building interior.
(d) Up to twenty (20) points – Building elevations that provide information on existing conditions and proposed improvements.
(e) Up to ten (10) points – A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species.
(f) Up to ten (10) points – Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements).
3. Business and operations plan – one hundred (100) points.
The one hundred (100) points awardable under this subsection 4-35.7d3 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to five (5) points – A written description of the total square footage of the facility with estimated square footage of proposed uses.
(b) Up to ten (10) points – A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.
(c) Up to fifteen (15) points – A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.
(d) Up to ten (10) points – A description of the sources(s) of capital and use(s) of capital.
(e) Up to ten (10) points – Proforma financial statements for at least three (3) years of operation.
(f) Up to ten (10) points – A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.
(g) Up to fifteen (15) points – A description of marketing procedures and tactics.
(h) Up to five (5) points – A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.
(i) Up to five (5) points – A description of hours of operation and opening procedures.
(j) Up to five (5) points – A description of cash handling procedures.
(k) Up to five (5) points – A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software.
(l) Up to five (5) points – A description of transportation, loading and unloading, distribution, or delivery procedures.
4. Security plan – one hundred (100) points.
The one hundred (100) points awardable under this subsection 4-35.7d4 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to twenty (20) points – The security plan shall be prepared by a professional security consultant.
(b) Up to ten (10) points – A premises security diagram.
(c) Up to fifty (50) points – A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this section 4-35.
(d) Up to ten (10) points – A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.
(e) Up to ten (10) points – A description of the services of on-site security guards to include the (1) number of security guards; (2) the hours security guards will be on site; (3) locations where security will be positioned; and (4) security guard responsibilities.
5. Safety plan – one hundred (100) points.
The one hundred (100) points awardable under this subsection 4-35.7d5 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to twenty (20) points – The safety plan shall be prepared by a professional fire prevention and suppression consultant.
(b) Up to ten (10) points – A premises safety diagram to include (1) a description/illustration of evacuation routes and (2) location of fire extinguishers and other fire suppression equipment.
(c) Up to fifty (50) points – A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this section 4-35.
(d) Up to ten (10) points – Identify all gases, pesticides, and chemicals to be used and their storage locations.
(e) Up to ten (10) points – A description of the fire alarm and monitoring system including the name and contact information for the monitoring company.
6. Neighborhood compatibility plan – one hundred fifty (150) points.
The one hundred fifty (150) points awardable under this subsection 4-35.6 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to seventy-five (75) points – A “Good Neighbor Policy” that (1) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis retailer, including addressing parking and traffic impacts and (2) describes how the cannabis retailer and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.
(b) Up to twenty-five (25) points – A description of odor mitigation practices to include: (1) identifying potential sources of odor; (2) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (3) all proposed staff odor training and system maintenance.
(c) Up to twenty-five (25) points – A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant’s security measures and methods of rendering waste unusable and unrecognizable.
(d) Up to twenty-five (25) points – A description of efforts at sustainability/environmental impact mitigation.
7. Community benefits plan – one hundred (100) points.
The city council finds that monetary donations to support city-sponsored activities and programs carry out the purpose and intent of this section and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, eighty (80) of the one hundred (100) points awardable under this subsection 4-35.7d7 shall only be awarded if the applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to one percent of projected gross receipts of the applicant to the following city-sponsored programs/causes: (a) senior citizen programs, (b) city beautification efforts, (c) fund for enforcement of illegal cannabis operations, (d) public safety, (e) housing programs, (f) recreation services, (g) infrastructure, (h) general fund, and/or (i) any other proposed city efforts. Beyond the above, no further direct financial contributions shall be considered as part of an applicant’s community benefits plan.
The remaining twenty (20) of the one hundred (100) points awardable under this subsection 4-35.7d7 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to ten (10) points – A description of a social responsibility plan to include identification of a community liaison and plans to aid and participate in the work of local non-profits, community-based organizations, civic organizations, or social services organizations.
(b) Up to ten (10) points – A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.
8. Labor and employment plan – one hundred (100) points.
The one hundred (100) points awardable under this subsection 4-35.7d8 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to five (5) points – An organizational chart showing owners, managers, and employees.
(b) Up to five (5) points – A description of the owner’s and manager’s roles in day-to-day operations and decisions.
(c) Up to five (5) points – A description of the number of employees, title/position, and their respective responsibilities.
(d) Up to fifteen (15) points – A description of compensation to employees, opportunities for continuing education, and employee training.
(e) Up to twenty (20) points – A description of whether the cannabis retailer is committed to offering employees a living wage.
(f) Up to fifteen (15) points – A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.
(g) Up to five (5) points – A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.
(h) Up to thirty (30) points – A description of a plan to have at least fifty percent (50%) of employee positions filled, and hours worked by employees residing in the city.
e. Upon timely receipt of a retail cannabis business permit application, the city manager shall conduct background checks in accordance with subsection 4-35.181. Following review and scoring of complete applications pursuant to objective review criteria under subsection 4-35.7d, the city manager shall, as a ministerial duty, rank all applicants according to their scores received from subsection 4-35.7d, and schedule meetings with an ad hoc committee formed by the city council to review and interview up to the top twelve (12) ranked applicants. Following its review and interview of the selected applicants, the ad hoc committee, in conjunction with city staff, shall score and rank the applicants and recommend up to the top eight (8) applicants for the city council’s consideration of an award of retail cannabis business permits. Upon receipt of the ad hoc committee’s recommendations, the city manager shall schedule the consideration of an award of retail cannabis business permits at a meeting of the city council. The city council shall consider the applicants in order of their rank as determined by the ad hoc committee. The selected applicants will be afforded the opportunity to make a five (5) minute public presentation to the city council describing each of their retail cannabis business permit applications and addressing the objective review criteria and quantitative evaluation scale in subsection 4-35.7d. Following the presentations made by the applicants described in this subsection 4-35.7e, the city council may issue retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized in subsection 4-35.5, with the applicants selected for a retail cannabis business permit being issued at the sole discretion of the city council. In so issuing retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized in subsection 4-35.5 at its sole discretion, the city council shall have the absolute discretion to (1) award retail cannabis business permits in accordance with the ranking order of applicants as determined by the ad hoc committee or in accordance with its own determination following the presentations made by the applicants to the city council and (2) issue the retail cannabis business permits contingent on the city enacting a legally effective means for taxing cannabis retailers. However, the city council shall not issue a retail cannabis business permit to any applicant with an owner or manager that:
1. Provided false or misleading information on the applicant’s retail cannabis business permit application;
2. Has been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in section 26057(b)(4) of the state Business and Professions Code; or
3. Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three (3) years immediately preceding the date the application was submitted.
f. Any decision of the city manager or city council under this subsection 4-35.7 shall be a final administrative decision not subject to administrative appeal under any provisions of this section 4-35 or any provisions of the city municipal code but, rather, subject to judicial review and remedies.
g. In the event that the city council is ordered to increase the number of retail cannabis business permits issued for retailers by a court of competent jurisdiction as a judicial remedy, the city manager shall, as a ministerial duty, reinstitute the application procedure under this subsection 4-35.7, subject to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. In the event that the number of active, operating retailers and issued retail cannabis business permits falls below the number of retail cannabis business permits for retailers authorized in subsection 4-35.5, the city council may, at its sole discretion, require the city manager, as a ministerial duty, to reinstitute the application procedure under this subsection 4-35.7, subject to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. For the purpose of this section, a retailer shall be considered operating if (1) upon initial issuance of retail cannabis business permit (or approval of a change in location pursuant to subsection 4-35.13), the retailer commences lawful operations within twenty-four (24) months (subject to the city manager providing extensions in his or her reasonable discretion if the permittee can demonstrate that the delay was due to situations beyond its control and/or that significant progress towards establishing the use has been made) or (2) following initial commencement of lawful operations, the retailer does not cease or abandon operations for one hundred twenty (120) consecutive or cumulative days in any one-year period. A retailer’s failure to commence lawful operations within twenty-four (24) months or following initial commencement of lawful operations, the retailer abandons operations for one hundred twenty (120) consecutive or cumulative days in any one-year period shall be considered a material violation of this section 4-35. (Ord. #1751, §4)
4-35.8 Limitations On The City’s Liability:
To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to having issued a retail cannabis business permit pursuant to this section 4-35 or otherwise approving the operation of any cannabis retailer. As a condition to the approval of any retail cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive a retail cannabis business permit:
a. Execution of an agreement, in a form approved by the city attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the city, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of, or which are in any way related to, the city’s issuance of the retail cannabis business permit, the city’s decision to approve the operation of the cannabis retailer 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 retailer or any of its officers, employees, or agents. This obligation shall commence immediately upon the city’s selection of an applicant for a retail cannabis business permit.
b. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city attorney.
c. Defend and indemnify the city for all costs and expenses, including but not limited to attorneys’ fees and court costs, that the city may be required to pay as a result of any legal challenge related to the city’s approval of the applicant’s retail cannabis business permit or related to the city’s approval of a cannabis retail sales. In such instance, the city shall have the right to choose the defense counsel to represent the city at the sole expense of the permittees. A permittee’s failure to pay the city its proportional share of costs within forty-five (45) days following the city providing the permittee notice of the city’s exercise of its indemnity rights herein shall be considered a material violation of this section 4-35. This obligation shall commence immediately upon the City’s selection of an applicant for a retail cannabis business permit. (Ord. #1751, §4)
4-35.9 Retail Cannabis Business Permit Term:
a. Subject to this subsection 4-35.9 and subsection 4-35.10, the term of each retail cannabis business permit shall be ten (10) years, unless the permit is revoked by the city for any reason authorized by this section 4-35. Each permit may be extended for two (2) additional years twice administratively by the city manager. Permits that are extended twice administratively may request an extension of up to ten (10) years by application to the city council. The process for requesting such extensions shall be approved by the city council by resolution prior to the expiration of the initial ten (10) year term.
b. Upon the one year anniversary of the date of issuance for each retail cannabis business permit and each year thereafter, the city manager shall conduct a performance review of the permittee to assess compliance with the requirements of this section 4-35. Within thirty (30) days of the conclusion of the annual performance review of the permittee, the city manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have sixty (60) days to remedy such noncompliance. However, in the event such noncompliance items cannot be remedied within sixty (60) days, such noncompliance items shall not constitute a material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this section 4-35 subject to suspension or revocation under subsection 4-35.10 if the permittee commences correction of such noncompliance items within sixty (60) days and thereafter diligently prosecutes correction of such noncompliance items to completion. The city manager shall have the final discretion and authority to determine whether a permittee is working diligently to correct all noncompliance items in a timely manner.
c. The permittee shall pay a nonrefundable fee in an amount to be set by the city council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the city to administer the program created under this section 4-35. (Ord. #1751, §4)
4-35.10 Suspension And Revocation Of Retail Cannabis Business Permits:
a. The city manager may suspend or revoke a retail cannabis business permit at any time for any material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this section 4-35.
b. Suspension or revocation of a state license issued by the state or by any of its departments or divisions corresponding to the retail cannabis business permit shall immediately result in the suspension of the associated retail cannabis business permit until the state, or its applicable department or division, reinstates the state license or otherwise lifts such suspension.
c. A permittee shall inform the city manager or designee(s) of any suspension, revocation, or termination of a state license corresponding to its retail cannabis business permit within five (5) business days of the suspension, revocation, or termination of the state license. (Ord. #1751, §4)
4-35.11 Appeals Regarding Retail Cannabis Business Permits:
a. Within ten (10) calendar days after the date of a decision of the city manager to revoke or suspend an issued retail cannabis business permit, deny a change in location application, or deny a change in ownership application, an aggrieved party may appeal such action to the city council by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper. An appeal shall stay all proceedings in furtherance of the appealed action.
b. At the time of filing, the appellant shall pay the designated, non-refundable appeal fee established by resolution of the city council.
c. Upon receipt of the written appeal, the city clerk shall set the matter for a hearing before the city council. The city council shall hear the matter de novo and shall conduct the hearing pursuant to the procedures set forth by the city.
d. The appeal shall be held within a reasonable time after filing the appeal, but in no event later than ninety (90) days from the date of such filing. The city shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing.
e. At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.
f. At the conclusion of the hearing, the city council may affirm, reverse, or modify the decision appealed. The decision of the city council shall be a final administrative decision, subject to judicial review and remedies. (Ord. #1751, §4)
4-35.12 Change In Location; Updated Application Information:
a. A permittee may change the business location specified in a retail cannabis business permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under subsection 4-35.22. The permittee shall pay a nonrefundable application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in location applications. Upon submission of a change in location application by a permittee, the city manager shall, as a ministerial duty, complete processing of such change in location application. If a change in location application is incomplete or the proposed changed location contained therein does not comply with location and zoning requirements in subsection 4-35.6 and this section, the city manager shall, as a ministerial duty, deny the change in location application. If a change in location application is complete and the proposed changed location contained therein complies with location and zoning requirements in subsection 4-35.6 and this section, the city manager shall, in his or her sole discretion, approve or deny the change in location application. In the event the city manager denies a change in location application, the permittee may appeal the city manager’s denial to the city council pursuant to subsection 4-35.11.
b. In addition to the location and zoning requirements in subsection 4-35.6, a permittee may not change the business location specified in a retail cannabis business permit to any property located one thousand feet (1,000') or less from any cannabis retailer permitted under this section 4-35. The distance specified in this subsection 4-35.12b shall be the horizontal distance measured in a straight line from the parcel line of the cannabis retailer permitted under this section 4-35 to the closest parcel line of the lot on which the cannabis retailer is proposed to be located without regard to intervening structures.
c. An applicant or permittee shall notify the city manager or designee(s) within fifteen (15) calendar days of any material change in the information provided in the applicant or permittee’s retail cannabis business permit application or any change in status of compliance with the provisions of this section 4-35, including any change in the cannabis retailer ownership or management. (Ord. #1751, §4)
4-35.13 Transfer Of A Retail Cannabis Business Permit:
a. An owner of a retail cannabis business permit shall not transfer ownership or control of such permit to another person unless and until the permittee and transferee(s) obtain an amendment to the permit from the city manager stating that the transferee(s) is now an owner of the permit. A permittee may change the ownership specified in a retail cannabis business permit upon submission of a change in ownership application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under subsection 4-35.22 within one hundred eighty (180) days following the effective date of this section 4-35. The permittee shall pay a nonrefundable application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in ownership applications. Upon submission of a change in ownership application by a permittee, the city manager shall, as a ministerial duty, complete processing of such change in ownership application. If a change in ownership application is incomplete or the proposed transferee(s) contained therein do not pass the background check(s) required under this section 4-35, the city manager shall, as a ministerial duty, deny the change in ownership application. If the cumulative (i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is less than twenty-five and one-tenth percent (25.1%) from the ownership percentages contained in the permittee’s original retail cannabis business permit application and the proposed transferee(s) contained therein pass the background check(s) required under this section 4-35, the city manager shall, as a ministerial duty, approve the change in ownership application. If the cumulative (i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is twenty-five and one-tenth percent (25.1%) or more and less than fifty percent (50%), the city manager shall, in his or her sole discretion, approve or deny the change in ownership application.
In the event the city manager denies a change in ownership application, the permittee may appeal the city manager’s denial to the city council pursuant to subsection 4-35.11. If the cumulative (i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is fifty percent (50%) or more from the ownership percentages contained in the permittee’s original retail cannabis business permit application and the proposed transferee(s) contained therein pass the background check(s) required under this section 4-35, the city manager shall, as a ministerial duty, schedule a public hearing before the city council within thirty (30) days of completed processing, and, following the public hearing, the city council shall, in its sole discretion, approve or deny the change in ownership application.
b. Notwithstanding subsection 4-35.13a, no retail cannabis business permit may be transferred when the city manager has notified the permittee that its retail cannabis business permit has been or may be suspended or revoked.
c. Any attempt to transfer a retail cannabis business permit either directly or indirectly in violation of this subsection 4-35.13 is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit. (Ord. #1751, §4)
4-35.14 Records And Recordkeeping:
a. Each cannabis retailer shall maintain accurate books and records in an electronic format, which detail all revenues and expenses of the business, including, but not limited to, all of its assets and liabilities. On no less than an annual basis (at the time of performance review of a retail cannabis business permit issued pursuant to this section 4-35), or at any time upon reasonable request of the city, each cannabis retailer shall file a sworn statement detailing the number of sales by the cannabis retailer during the previous three (3) month period (or shorter period based upon the timing of the request) detailing sales for each month within such period in question. The statement shall also include gross sales for each month and all applicable taxes paid or due to be paid. On an annual basis, each cannabis retailer shall submit to the city a financial audit of the business’s operations conducted by an independent certified public accountant. The city may perform its own annual independent financial audit and charge the retailer for such cost incurred by the city. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the city manager.
b. Each cannabis retailer 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 retailer and, separately, the same contact information of all officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis retailer. The register required by this subsection shall be provided to the city manager upon a reasonable request.
c. Each cannabis retailer shall maintain a record of all purchases and sales of cannabis and cannabis products for a period of no less than seven (7) years.
d. All cannabis retailers shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products.
e. Subject to any applicable restrictions under the Health Insurance Portability and Accountability Act (“HIPAA”) regulations, each cannabis retailer shall grant the city manager access to the business’s books, records, accounts, together with any other data or documents relevant to its operation, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents shall be produced no later than ten (10) business days after receipt of the city manager’s request for such data, unless otherwise stipulated by the city manager. The city manager may require the materials to be submitted in an electronic format that is compatible with the city’s software and hardware. (Ord. #1751, §4)
4-35.15 Security Measures:
a. A cannabis retailer 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 retailer. Except as may otherwise be determined by the city manager, these security measures shall include, but are not limited to, the following:
1. Preventing individuals from remaining on the premises of the cannabis retailer if they are not engaging in an activity directly related to the permitted operations of the cannabis retailer.
2. Establishing limited access areas accessible only to authorized cannabis retailer personnel.
3. All cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products shall be kept in a manner designed to prevent diversion, theft, and loss.
4. Installing twenty-four (24) hour security surveillance cameras of at least HD quality to monitor all entrances and exits to and from the premises, all interior spaces within the cannabis retailer, 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. The cannabis retailer shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the city manager, and that it is compatible with the city’s software and hardware. Video recordings shall be maintained for a minimum of ninety (90) days and shall be made available to the city manager upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis retailer.
5. Sensors shall be installed to detect entry and exit from all secure areas.
6. Panic buttons shall be installed in all cannabis retailers.
7. Having a professionally installed, maintained, and monitored alarm system.
8. Any bars installed on the windows or the doors of the cannabis retailer shall be installed only on the interior of the building.
9. The premises shall be live monitored twenty-four (24) hours a day unless the cannabis retailer has an alternative security program authorized by the city manager. Security personnel must be licensed by the state Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager, which shall not be unreasonably withheld.
10. Additional security measures may be added through the review of a retail cannabis business permit application.
b. Each cannabis retailer shall identify a designated security representative or liaison to the city, who shall be reasonably available to meet with the city manager regarding any security related measures and/or operational issues.
c. Each cannabis retailer (including as part of the retail cannabis business permit application process) shall have a storage and transportation plan and currency management plan, which describes in detail the procedures for safely and securely storing, disposing and transporting all cannabis, cannabis products, and any currency.
d. The cannabis retailer shall cooperate with the city whenever the city manager makes a request, upon reasonable notice to the cannabis retailer, to inspect or audit the effectiveness of any security plan or of any other requirement of this section 4-35.
e. A cannabis retailer shall notify the city manager within twenty-four (24) 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 retailer or any agent or employee of the cannabis retailer.
3. The loss or unauthorized alteration of records related to cannabis and cannabis products or registering customers or employees and/or agents of the cannabis retailer.
4. Any other breach of security. (Ord. #1751, §4)
4-35.16 Restriction On Alcohol And Tobacco Sales:
No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis retailer. (Ord. #1751, §4)
4-35.17 Fees And Charges:
a. No person may commence or continue any cannabis retail sales in the city without timely paying in full all fees and charges required for the operation of a cannabis retail sales. Fees and charges associated with the operation of such activity shall be established by resolution of the city council which may be amended from time to time.
b. All cannabis retailers authorized to operate under this section 4-35 shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state, and local law. Each cannabis retailer shall cooperate with city with respect to any reasonable request to audit the cannabis retailer’s books and records for the purpose of verifying compliance with this subsection 4-35.17, including, but not limited to, a verification of the amount of taxes required to be paid during any period. (Ord. #1751, §4)
4-35.18 General Operating Requirements:
a. Cannabis retailers may operate only during the hours specified in the retail cannabis business permit issued by the city and must comply with state law at all times.
b. Cannabis shall not be consumed on the premises of any cannabis retailer.
c. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a retail cannabis business permit or on any of the vehicles owned or used as part of the cannabis retailer. No outdoor storage of cannabis or cannabis products is permitted at any time.
d. Each cannabis retailer shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the cannabis retailer including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the city. The cannabis retailer shall ensure that such information is compatible with the city’s recordkeeping systems as well as the state-mandated track and trace requirements and systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the city manager prior to being used by a permittee.
e. All cannabis and cannabis products sold and/or distributed shall be cultivated, manufactured, and distributed by licensed facilities that maintain operations in full conformance with the state and local regulations. The packaging and labeling of cannabis and cannabis products shall comply at all times with state law.
f. There shall not be a physician located in any cannabis retailer at any time for the purpose of evaluating patients for the issuance of medicinal cannabis recommendations.
g. Each cannabis retailer shall provide the city manager with the name, and telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.
h. Signage And Notices.
1. In addition to the requirements otherwise set forth in this subsection 4-35.18, business identification signage for a cannabis retailer shall conform to the requirements of the city municipal code, including, but not limited to, seeking the issuance of a city sign permit.
2. No signs placed on the premises of a cannabis retailer shall obstruct any entrance or exit to the building or any window.
3. Each entrance to a cannabis retailer 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 premises, is prohibited.
4. The entrance to the cannabis retailer shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the cannabis retailer, other than as lawful customers permitted under state law.
i. Other than as lawful customers permitted under state law in the case of retailers, individuals under the age of twenty-one (21) years shall not be allowed on the premises of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer. It shall be unlawful and a violation of this section 4-35 for any person to employ any person at a cannabis retailer who is not at least twenty-one (21) years of age.
j. Odor control devices and techniques shall be incorporated in all cannabis retailers to ensure that odors from cannabis are not detectable off site. Cannabis retailers shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis retailer 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 retailer.
k. The original copy of the retail cannabis business permit issued by the city pursuant to this section 4-35 and the city-issued business license shall be posted inside the cannabis retailer in a location readily visible to the public.
l. Pursuant to sections 11105(b)(11) and 13300(b)(11) of the state Penal Code, which authorizes city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, or volunteer of the cannabis retailer must submit fingerprints and other information deemed necessary by the city manager for a background check. Pursuant to sections 11105(b)(11) and 13300(b)(11) of the state Penal Code, which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a retail cannabis business permit unless they have first cleared the background check, as determined by the city manager, as required by this section 4-35. A nonrefundable fee for the cost of the background investigation, which shall be the actual cost to the city to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a retail cannabis business permit is submitted.
m. The cannabis retailer shall prohibit loitering by persons outside the facility both on the premises and within fifty feet (50') of the premises.
n. Within sixty (60) days of licensure, for a permittee with twenty (20) or more employees, the permittee shall attest to the city that the permittee has entered into a labor peace agreement and will abide by the terms of the agreement. The permittee shall submit a copy of the page of the labor peace agreement that contains the signatures of the labor representative and the applicant. For permittees with less than twenty (20) employees who have not yet entered into a labor peace agreement, the permittee shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within thirty (30) days after employing twenty (20) employees. If an attestation that the permittee is party to a labor peace agreement, and a copy of the page of the labor peace agreement that contains the signatures of the labor representative was submitted to the city by the permittee as part of the application process, that will meet this obligation.
o. Cannabis retailers shall implement a workforce plan that includes at least the following provisions:
1. Commitment for thirty percent (30%) of employees to be local hires; this local hiring requirement is satisfied when a cannabis retailer shows that it has either hired or made a good faith effort to hire bona fide residents of the city or persons that may establish residency after initial employment with the permittee;
2. Commitment to offer apprenticeships and/or compensation for continuing education in the field of cannabis retail sales; and
3. Paying a living wage to employees. “Living wage” means compensation equivalent to twenty dollars ($20.00) per hour inclusive of benefits but excluding tips.
p. It shall be unlawful for a cannabis retailer to discriminate in any manner or take adverse action against any employee in retaliation for exercising rights protected under this section 4-35 or city or state law. These rights include, but are not limited to (1) the right to file a complaint or inform any person about any party’s alleged noncompliance with this section 4-35 or city or state law and (2) the right to inform any person of his or her potential rights under this section 4-35 or city or state law and to assist him or her in asserting such rights. Protections under this section 4-35 or city or state law shall apply to any employee who mistakenly, but in good faith, alleges noncompliance with this section 4-35 or city or state law. Taking adverse action against an employee within ninety (90) days of the employee’s exercise of rights protected under this section 4-35 or city or state law shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights. (Ord. #1751, §4)
4-35.19 Additional Operational Requirements In General:
The city manager may, pursuant to subsection 4-35.22, develop additional cannabis retailer operational requirements or regulations for the retail sale of cannabis and cannabis products in the city as are determined to be necessary to protect the public health, safety, and welfare. (Ord. #1751, §4)
4-35.20 Additional Operating Requirements:
a. Retailers and the operation thereof shall comply with state law at all times.
b. Prior to dispensing medicinal cannabis or medicinal cannabis products to a qualified patient, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in sections 11362.71 through 11362.77 of state Health and Safety Code, as may be amended from time to time, on site for a period of not less than seven (7) years.
c. Prior to dispensing cannabis or cannabis products to an adult-use customer, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years.
d. All restroom facilities shall remain locked and under the control of managers on site.
e. A retailer shall notify customers (verbally or by written agreement) and by posting of a notice or notices conspicuously in at least fifteen (15) point type within the permitted premises that state as follows:
1. “The sale or diversion of cannabis or cannabis products without a license issued by the City of Lynwood is a violation of State law and the Lynwood Municipal Code.”
2. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest.”
3. “Customers must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance.”
4. “WARNING: The use of cannabis or cannabis products may impair a person’s ability to drive a motor vehicle or operate heavy machinery.”
5. “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis-derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer and reproductive harm.” (Ord. #1751, §4)
4-35.21 Additional Operating Requirements For Delivery:
a. Delivery shall comply with state law at all times.
b. Security plans developed pursuant to this section 4-35 shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.
c. A retailer shall facilitate the delivery of cannabis or cannabis products with a technology platform owned by or licensed to the delivery-only retailer that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the retailer and customer:
1. The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;
2. The identity of the customer receiving cannabis or cannabis products from the permittee;
3. The type and quantity of cannabis or cannabis products dispensed and received;
4. The gross receipts charged by the permittee and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received; and
5. The location or address where the sale or retail sale took place or closed.
d. A permittee shall maintain a database and provide a list of the individuals and vehicles authorized to conduct delivery, and a copy of the valid state driver’s license issued to the driver of any such vehicle on behalf of the retailer to the city manager.
e. Individuals making deliveries of cannabis or cannabis products on behalf of the retailer shall maintain a physical copy of the delivery request (and invoice) and shall make it available upon the request of agents or employees of the city requesting documentation.
f. During delivery, a copy of the permittee’s retail cannabis business permit and state license shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the city requesting documentation.
g. A retailer shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is (1) insured at or above the legal requirement in the state; (2) capable of securing (locking) the cannabis or cannabis products during transportation; (3) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (4) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a retailer.
h. A retailer shall facilitate deliveries with a technology platform owned by or licensed to the retailer that uses global positioning system technology to track, and database technology to record and store the following information:
1. The time that the individual conducting delivery on behalf of the retailer departed the licensed premises.
2. The time that the individual conducting delivery on behalf of the retailer completed delivery to the customer.
3. The time that the individual conducting delivery on behalf of the retailer returned to the licensed premises.
4. The route the individual conducting delivery on behalf of the retailer traveled between departing and returning to the licensed premises to conduct delivery.
5. For each individual delivery transaction, the identity of the individual conducting deliveries on behalf of the retailer.
6. For each individual delivery transaction, the vehicle used to conduct delivery on behalf of the retailer.
7. For each individual delivery transaction, the identity of the customer receiving cannabis or cannabis products from the retailer.
8. For each individual delivery transaction, the type and quantity of cannabis or cannabis products dispensed and received.
9. For each individual delivery transaction, the gross receipts charged by the retailer and received by the individual conducting deliveries on behalf of the retailer for the cannabis or cannabis products dispensed and received.
i. The individual making deliveries on behalf of the retailer shall personally verify for each individual delivery transaction the identity of the customer receiving cannabis or cannabis products from the retailer and (1) for medicinal cannabis or medicinal cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in sections 11362.71 through 11362.77 of state Health and Safety Code, as may be amended from time to time, on site for period of not less than seven (7) years or (2) for cannabis or cannabis products to an adult-use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years.
j. Within one hundred eighty (180) days following the effective date of this section, commercial cannabis businesses conducting delivery pursuant to section 4-34 shall comply with the requirements of this subsection 4-35.21. (Ord. #1751, §4)
4-35.22 Promulgation Of Regulations, Standards, And Other Legal Duties:
a. Consistently with stated requirements of this section 4-35 (and in particular not to repeal or constructively repeal this section 4-35), in addition to any regulations adopted under state law, the city manager is authorized to establish any additional rules, regulations, and standards governing the issuance, denial, or renewal of retail cannabis business permits, the ongoing operation of cannabis retailers, and the city’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this section 4-35.
b. Such regulations shall be published on the city’s website.
c. Regulations promulgated by the city manager shall become effective upon date of publication. Cannabis retailers 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. #1751, §4)
4-35.23 Community Relations:
a. Each cannabis retailer shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis retailer can be provided. Each cannabis retailer shall also provide the above information to all businesses and residences, in the city, located within one hundred and fifty feet (150') of the cannabis retailer. Such community relations contact shall respond to any complaints within forty-eight (48) hours of receipt of such complaints.
b. During the first year of operation pursuant to this section 4-35, the owner(s), manager(s), and community relations representative from each cannabis retailer holding a retail cannabis business permit issued pursuant to this section 4-35 shall attend a quarterly meeting with the city manager and other interested parties as deemed appropriate by the city manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this section 4-35. After the first year of operation, the owner(s), manager(s), and community relations representative from each such cannabis retailer shall meet with the city manager when and as requested by the city manager.
c. Cannabis retailers to which a retail cannabis business permit is issued pursuant to this section 4-35 shall develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. (Ord. #1751, §4)
4-35.24 Fees Deemed Debt To City:
The amount of any fee, cost, or charge imposed pursuant to this section 4-35 shall be deemed a debt to the city that is recoverable via authorized processes as set forth in the city municipal code or available through any court of competent jurisdiction. (Ord. #1751, §4)
4-35.25 Permittee, Owner, And Property Owner Responsible For Violations:
a. Each permittee and each owner and each manager of the permittee (and each individual owner and each individual manager of an owner or manager of the permittee) shall be responsible for all violations of the laws of the state or of the regulations and/or the ordinances of the city occurring within the city or in or about the premises of the cannabis retailer, if committed by the permittee or any employee or agent of the permittee and whether or not said violations occur within the permittee, owner, or manager’s presence.
b. No person may engage in any cannabis retail sales within the city unless the person is in compliance with the requirements of this section 4-35.
c. It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any location, structure, or vehicle in the city by a person (1) that does not have a valid retail cannabis business permit issued by the city; (2) that does not have a valid state license; (3) that does not have any other applicable approvals, including, but not limited to, a building permit and city business license; or (4) that is not currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis retail sales. Property owners shall have strict liability for any cannabis retail sales at any location, structure, or vehicle in the city by a person (1) that does not have a valid retail cannabis business permit issued by the city or (2) that does not have a valid state license. (Ord. #1751, §4)
4-35.26 Inspection And Enforcement:
a. The city manager or designee(s) charged with enforcing the provisions of the city municipal code, or any provision thereof, may enter the location of a cannabis retailer at any time, without notice, and inspect the location of any cannabis retailer as well as any recordings and records required to be maintained pursuant to this section 4-35 or under applicable provisions of state law.
b. It is unlawful for any person having responsibility over the operation of a cannabis retailer, 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 retailer under this section 4-35 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 retailer under this section 4-35 or under state or local law.
c. The city manager or designee(s) charged with enforcing the provisions of this section 4-35 may enter the location of a cannabis retailer at any time during business hours and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the city shall be logged, recorded, and maintained in accordance with the city law enforcement standards for evidence. (Ord. #1751, §4)
4-35.27 Concurrent Regulation With The State:
It is the stated intent of this section 4-35 to regulate cannabis retail sales in the city concurrently with the state. (Ord. #1751, §4)
4-35.28 Violations Declared A Public Nuisance:
Each and every material violation of the provisions of this section 4-35 is hereby deemed unlawful and a public nuisance subject to all remedies and enforcement measures authorized by the city municipal code. (Ord. #1751, §4)
4-35.29 Each Violation A Separate Offense:
Each and every violation of this section 4-35 shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the city municipal code. Additionally, as a nuisance per se, any material violation of this section 4-35 shall be subject to injunctive relief, any retail cannabis business permit issued pursuant to this section 4-35 being deemed null and void, disgorgement, and payment to the city of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney’s fees, and any other relief or remedy available at law or in equity. The city may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the cannabis retailer or persons related to, or associated with, the cannabis retail sales. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the city manager or designee(s) may take immediate action to temporarily suspend a retail cannabis business permit issued by the city, pending a public hearing before the city council. (Ord. #1751, §4)
4-35.30 Criminal Penalties:
Each and every material violation of the provisions of this section 4-35 may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed five thousand dollars ($5,000.00) or imprisonment in the county jail for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a material violation is committed or permitted to continue shall constitute a separate offense. (Ord. #1751, §4)
4-35.31 Remedies Cumulative And Not Exclusive.
The remedies provided herein are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by law. (Ord. #1751, §4)