Chapter 9.60
CANNABIS PUBLIC SAFETY LICENSE

Sections:

9.60.010    Purpose and intent.

9.60.020    Definitions.

9.60.030    Cannabis businesses – General provisions.

9.60.040    Cannabis public safety license – General provisions.

9.60.050    Public safety license and public safety license renewal – Approval and denial.

9.60.060    Expiration and renewal of cannabis public safety licenses.

9.60.070    Suspension and revocation by chief of police.

9.60.080    Establishment of regulations.

9.60.090    No vested rights.

9.60.010 Purpose and intent.

It is the purpose and intent of this chapter to establish a cannabis public safety license and the procedures for issuance of said license. A cannabis public safety license shall be required as a condition for the continued operation of any cannabis business as set forth in Chapter 17.84 BMC. The regulations in this chapter are meant to ensure the health, safety, and welfare of the residents of the city of Benicia. Cannabis businesses within the city must comply with all provisions of the Benicia Municipal Code for obtaining permits and licenses for a cannabis business and must comply with the state cannabis laws and all other applicable local and state laws. Nothing in this chapter permits activities that are otherwise illegal under state or local laws. (Ord. 18-02 § 1).

9.60.020 Definitions.

For the purposes of this chapter, the following words and phrases shall have the following meanings:

“Applicant” means person who is required to file an application for a cannabis business under this chapter, including an individual owner, managing partner, officer of a corporation, or any other operator, management member, employee, or agent of a cannabis business.

“Application for renewal” shall mean an application for a renewed cannabis public safety license, which application may be submitted by a licensee.

“Cannabis” shall have the meaning set forth in Business and Professions Code Section 26001(f) and as it may be amended.

“Cannabis business” shall include:

1. Any business, facility, use, establishment, property, or location, whether fixed or mobile, where a commercial cannabis activity takes place.

2. Any building, facility, use, establishment, property, or location whether fixed or mobile where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a state license under California Business and Professions Code Division 10 including, but not limited to, cannabis cultivation, cannabis distribution, cannabis delivery, cannabis manufacturing, cannabis testing and cannabis retail sales, and the operation of a cannabis microbusiness.

“Chief of police” or “police chief” shall mean the chief of the city of Benicia police department.

“Commercial cannabis activity” shall include the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products. “Commercial cannabis activity” shall not include those private activities that are made lawful under state and local law under Health and Safety Code Section 11362.1.

“Cultivation” shall mean any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

“Licensee” shall mean the cannabis business owner identified to the city as such, and to whom a city cannabis public safety license has been issued.

“Operator” shall mean any person responsible for management of the cannabis business, any person listed on the cannabis business’s chapters of incorporation, any person owning an interest in the cannabis business, and any person that supervises another employee of the cannabis business.

“Owner” shall have that meaning set forth in Business and Professions Code Section 26001(al) and as it may be amended.

“Property” shall mean the designated structure or structures and land specified in the cannabis public safety license 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.

“State cannabis laws” means and includes California Health and Safety Code Sections 11362.1 through 11362.45, 11362.5 (Compassionate Use Act of 1996), and 11362.7 through 11362.83 (Medical Marijuana Program); California Business and Professions Code Sections 26000, et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)); all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted pursuant to MAUCRSA; any license issued pursuant to MAUCRSA; and all other applicable laws of the state of California regulating cannabis or cannabis products.

“State license” shall mean a license from the state issued pursuant to California Business and Professions Code Division 10. (Ord. 18-02 § 1).

9.60.030 Cannabis businesses – General provisions.

A. Cannabis Use Permit and Public Safety License Required to Operate. It shall be unlawful for any person to engage in, to conduct or carry on (or to permit to be engaged in, conducted or carried on) in or upon property located within the city, the operation of a cannabis business unless that person has first obtained and continues to maintain in full force and effect a valid cannabis use permit issued by the city for that property and that type of cannabis business and a valid cannabis public safety license issued by the city to the owner and/or operator of the cannabis business, pursuant to this chapter.

B. Imposition of Public Safety License Fees.

1. Every application for a cannabis public safety license or renewal of such license shall be accompanied by a license fee in an amount set forth by separate resolution of the city council, which amount is calculated to recover the city’s full cost of reviewing, issuing and administering said license or renewal or inspections. The application fee shall include the standard city fees for fingerprinting, photographing, and background check costs and shall be in addition to any other business license fee or permit fee imposed by the Benicia Municipal Code or other governmental agencies.

2. A fee for renewal of a public safety license will be due annually.

C. Conditions of Operation.

1. Security Plan. A licensee shall provide adequate security on the property of the cannabis business. The security plan shall include interior and exterior physical layout and design plans and operational details as they relate to security. The layout, plans and operational details shall be approved by the chief of police. The following minimum security standards shall be maintained at all times:

a. Surveillance System.

i. Each cannabis business shall be monitored at all times by closed-circuit television surveillance system. The camera and video recording surveillance system must be capable of providing surveillance of both interior and exterior areas of the cannabis business as directed by the police department in the interest of public safety and must be of adequate quality, color rendition and resolution to allow the ready identification of an individual on or adjacent to the property. The recordings shall be maintained at the cannabis business for a period of not less than 30 days and shall be provided to the city police department within 24 hours of a written request from the police department for any recordings. Each licensee shall notify the chief of police immediately after discovering any of the following: diversion, theft, loss, or any criminal activity involving the cannabis business; significant discrepancies identified during inventory; or any other breach of security.

ii. A sign shall be posted inside and at the entrances to the establishment indicating that the property is under camera/video surveillance.

b. Windows and Window Coverings. Store fronts (front facade of the cannabis business) shall be primarily glass with glass occupying at least 45 percent of the entire store front and 60 percent of the horizontal length of the store. Window and door areas shall not be covered, tinted, or made opaque in any way, or obscured in any way by landscaping, floor displays, equipment, or the like. The chief of police may modify these standards for windows and doors, if the police chief determines standards may be reduced from a public safety standpoint due to the location and/or type of business.

c. Loitering Adjacent to a Cannabis Business. Licensees, owners, and operators shall take reasonable measures to reduce loitering by cannabis business employees, owners, managers, customers, members, patrons, guests and invitees in public areas, sidewalks, alleys and areas surrounding the property and adjacent premises during the business hours of the cannabis business.

2. Nuisances Prohibited. A licensee, owner, and operator shall take reasonable steps to correct objectionable conditions that constitute a nuisance on any public sidewalk or public space abutting the cannabis business property.

a. For purposes of this section, “objectionable conditions that constitute a nuisance” includes public consumption of cannabis products, disturbance of the peace, drug trafficking, disposing of litter or trash, or excessive loud noise.

b. For purposes of this section, “reasonable steps” means all of the following:

i. Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee, or his or her agents or employees, shall not be used against a licensee, owner, or operator as evidence of objectionable conditions that constitute a nuisance.

ii. Requesting those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his or her agents or employees feel that their personal safety would be threatened in making that request.

iii. Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering unless placed by, or permitted to be placed by, the licensee or his or her agents.

3. State License Required to Operate. Operation of a cannabis business shall not commence until a licensee has obtained a valid state license. Licensees shall maintain a valid state license at all times during operation of a cannabis business.

D. Inspection of Dispensaries.

1. City officials may enter and inspect a cannabis business at any time during normal business hours with reasonable notice on any day of the week or at any reasonable time to ensure compliance and enforcement of the provisions of this chapter.

2. No licensee, owner, operator, or any other person shall refuse, impede, obstruct, or interfere with an inspection pursuant to this chapter.

E. Transfer of Cannabis Public Safety Licenses Prohibited. Licenses issued pursuant to this chapter shall be nontransferable to a different person or entity. Any attempt to transfer or any transfer of ownership or control of a cannabis business shall be grounds for revocation of the cannabis public safety license by the chief of police. (Ord. 18-02 § 1).

9.60.040 Cannabis public safety license – General provisions.

A. Application Procedures.

1. A public safety license application must be approved prior to the applicant initiating the cannabis use permit application process as set forth more fully in Chapter 17.84 BMC, unless the applicant requests concurrent processing of the public safety license and use permit application. Concurrent processing does not guarantee either or both will be approved.

2. A public safety license shall not be issued until after the planning commission has approved a cannabis use permit for the proposed cannabis business.

B. Application Filing Requirements. A complete cannabis public safety license application or application for renewal along with all required fees and materials required by this chapter, shall be submitted in order for an applicant to be considered for a public safety license. All cannabis public safety license applications or applications for renewal shall be filed with the chief of police using forms and authorizations provided by the city.

1. Eligibility for Filing. Public safety license applications and applications for renewal shall be filed by the owner of the cannabis business.

2. Public safety license applications and applications for renewal shall include:

a. For each licensee, owner, operator and employee of the cannabis business, a fully legible copy of one valid government-issued form of photo identification, such as a state driver’s license or identification card. Acceptable forms of government-issued identification include, but are not limited to, driver’s license or photo identity cards issued by the state Department of Motor Vehicles (or equivalent) that meet REAL ID benchmarks, a passport issued by the United States or by a foreign government, U.S. Military ID cards (active duty or retired military and their dependents) or a permanent resident card.

b. A certified copy of the cannabis business’s Secretary of State chapters of incorporation, certificate(s) of amendment, statement(s) of information and a copy of the cannabis business’s bylaws.

c. If the cannabis business is an unincorporated association, a copy of the chapters of association.

d. The name, address, electronic mail address and mobile phone number of the applicant’s or licensee’s current designated agent for service of process.

e. Emergency Contact. The name, electronic mail address, and mobile phone number, of an owner, operator, or manager to act as an on-site community relations staff person to whom the city may provide notice of any operating problems associated with the cannabis business.

f. A statement dated and signed by each 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.

3. In addition to a completed public safety license application or application for renewal, applicants or licensees shall provide and submit the following information to the chief of police:

a. The applicant and each owner, operator and employee shall consent to fingerprinting and a criminal background investigation, and shall undergo fingerprinting and a criminal background investigation.

b. Security Plans. Applicants shall provide a plan to provide adequate security on the property of the cannabis business. The plan shall include standards showing the cannabis business’s ability to comply with the conditions of BMC 9.60.030(C).

C. Ongoing Filing Requirements. Where a cannabis business or licensee replaces, hires, appoints or employs new operators and/or employees, all such operators and employees shall submit to fingerprinting and a criminal background investigation pursuant to subsection (B)(3) of this section. A cannabis business or licensee has an ongoing obligation to immediately report to the police chief any conviction for an offense listed below in BMC 9.60.050(A)(4) suffered by an owner, operator and/or employee of the cannabis business or licensee. A cannabis business or licensee shall also have an ongoing obligation to immediately report to the police chief any of the events listed in BMC 9.60.050(A)(5) or (6). (Ord. 18-02 § 1).

9.60.050 Public safety license and public safety license renewal – Approval and denial.

A. Criteria for Approval. Cannabis public safety licenses shall be approved when the chief of police confirms that the following criteria have been met:

1. The application is complete and provides all necessary and requested information.

2. The applicant and each owner, operator and employee of the cannabis business have authorized and completed fingerprinting.

3. The applicant and each owner, operator and employee of the cannabis business have authorized the use of their fingerprinting results to run a state and nationwide criminal background check.

4. The results of the criminal background checks establish that the applicant, owner(s), operator(s), and employees have not been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business. The following offenses are substantially related to the qualifications, functions, or duties of a cannabis business:

a. A violent felony conviction, as specified in Penal Code Section 667.5(c).

b. A serious felony conviction, as specified in Penal Code Section 1192.7(c).

c. A felony conviction involving fraud, deceit, or embezzlement.

d. A felony conviction 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.

e. A felony conviction for drug trafficking with enhancements pursuant to Health and Safety Code Section 11370.4 or 11379.8.

f. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license.

g. Conviction for cultivation or production of a controlled substance on public or private lands pursuant to Fish and Game Code Section 12025 or 12025.1.

h. Conviction for unauthorized commercial cannabis activities in any city, county or city and county in the five years immediately preceding the issuance of a cannabis public safety license or cannabis public safety renewal license.

5. The applicant has not been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for any unauthorized, unpermitted, or unlawful cannabis activities.

6. The applicant has not been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for cultivation or production of a controlled substance on public or private lands.

7. Security Plan. The applicant or licensee has provided a security plan providing the minimum standards set forth in BMC 9.60.030(C)(1).

B. Criteria for Denial. Cannabis public safety licenses shall not be issued or renewed where the chief of police confirms that one or more of the criteria set forth in subsection (A) of this section have not been met. A cannabis public safety license shall not be issued or renewed where the chief of police determines that the application contains a material falsehood or misrepresentation and/or omission of a material fact or other information required by this chapter and/or the approved application form. A cannabis public safety license shall not be issued or renewed where the chief of police determines that the applicant has failed to consistently maintain the minimum standards of the conditions of operation for a public safety license, has repeatedly failed to adhere to their approved security plan, or engages in activity which amounts to a public nuisance. If the chief of police denies the cannabis public safety license application or application for renewal, he or she shall specify in writing the reasons for the denial of the application or application for renewal, and notify the applicant that the decision shall become final unless the applicant seeks an appeal pursuant to subsection (C) of this section.

C. Appeal from Chief of Police Determination. An applicant who disagrees with the chief of police’s decision may appeal the chief of police’s decision to the city manager, and decisions of the city manager may be appealed to the city council in accordance with the appeal provisions of Chapter 1.44 BMC. (Ord. 23-01 § 10; Ord. 18-02 § 1).

9.60.060 Expiration and renewal of cannabis public safety licenses.

A. Cannabis public safety licenses shall expire one year after issuance.

B. Public safety licenses must be renewed on an annual basis prior to expiration by filing with the police chief a public safety license application for renewal and a renewal fee in an amount set forth by separate resolution of the city council, which amount is calculated to recover the city’s full cost of reviewing, issuing and administering said license.

C. The application for renewal and the renewal fee shall be filed at least 30 days, but not more than 60 days, prior to the expiration of the public safety license. If a timely, complete renewal application is filed, the cannabis business’s public safety license shall not expire until the date that the chief of police approves or denies the public safety license application for renewal.

D. An application for renewal shall be subject to all filing requirements set forth in BMC 9.60.040(B) and (C).

E. The chief of police shall issue or deny an application for renewal in accordance with the provisions of BMC 9.60.050. (Ord. 18-02 § 1).

9.60.070 Suspension and revocation by chief of police.

A. A cannabis public safety license issued under the terms of this chapter shall be suspended or revoked by the chief of police if he or she concludes any of the following:

1. The cannabis business has violated any of the requirements of this chapter or its cannabis public safety license.

2. The cannabis business is being operated in a manner which violates the security plan required by this chapter.

3. The cannabis business is being operated in a manner which constitutes a nuisance.

4. The cannabis business has failed to comply with the conditions of operation set forth in BMC 9.60.030(C).

5. The cannabis business has ceased to operate for 30 days or more.

6. The licensee, and/or an owner, operator, and/or employee of the licensee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business. If the convicted person is completely removed from the ownership and/or operation of the cannabis business, the chief of police may determine the suspension or revocation may be reversed. The following offenses are substantially related to the qualifications, functions, or duties of a cannabis business:

a. A violent felony conviction, as specified in Penal Code Section 667.5(c).

b. A serious felony conviction, as specified in Penal Code Section 1192.7(c).

c. A felony conviction involving fraud, deceit, or embezzlement.

d. A felony conviction 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.

e. A felony conviction for drug trafficking with enhancements pursuant to Health and Safety Code Section 11370.4 or 11379.8.

f. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license.

g. Conviction for cultivation or production of a controlled substance on public or private lands pursuant to Fish and Game Code Section 12025 or 12025.1.

h. Conviction for unauthorized, unpermitted, or unlawful commercial cannabis activities in any city, county or city and county in the five years immediately preceding the issuance of a cannabis public safety license or cannabis public safety renewal license.

7. The applicant has been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for any unauthorized, unpermitted, or unlawful cannabis activities.

8. The applicant has been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for cultivation or production of a controlled substance on public or private lands.

9. The cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.

10. A licensee’s cannabis use permit issued pursuant to Chapter 17.84 BMC has been terminated or revoked.

11. A licensee has attempted to transfer or has transferred a cannabis public safety license to another person or entity.

12. A licensee’s state license has been suspended, terminated, or revoked.

13. A licensee has failed to comply with the ongoing filing requirements set forth above in BMC 9.60.040(C) or provided false or misleading information when attempting to comply with BMC 9.60.040(C).

14. The police chief determines that the licensee’s application contains a material falsehood or misrepresentation and/or omission of a material fact or other information required by this chapter and/or the approved application form.

B. Expiration. Any cannabis public safety license revoked pursuant to this subsection shall be deemed to be expired and shall no longer entitle the licensee to any privileges authorized by the cannabis public safety license.

C. Appeal from Chief of Police Determination. A licensee who disagrees with the chief of police’s decision to suspend or revoke a public safety license may appeal the police chief’s decision to the city manager, and decisions of the city manager may be appealed to the city council in accordance with the appeal provisions of Chapter 1.44 BMC. (Ord. 18-02 § 1).

9.60.080 Establishment of regulations.

The city council may adopt, by resolution, additional regulations for the administration of this chapter. (Ord. 18-02 § 1).

9.60.090 No vested rights.

No person(s) shall have any vested rights to public safety license, right or interest under this chapter, regardless of whether such person(s) cultivated, sold, distributed or otherwise engaged in acts related to the use of cannabis prior to adoption of the ordinance codified in this chapter. (Ord. 18-02 § 1).