CHAPTER 10E
COMMERCIAL CANNABIS BUSINESSES

10E.1 Purpose and Intent.

It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (Business and Professions Code Section 26001 et seq., "MAUCRSA") to accommodate the needs of medically-ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s). It is also the purpose and intent of this Chapter to provide access to adult-use cannabis for persons aged 21 and over as authorized by the Control, Tax & Regulate the Adult Use Cannabis Act ("AUMA" or "Proposition 64" approved by California voters in 2016), while imposing reasonable regulations to protect the City’s residents, neighborhoods, and businesses from any harmful impacts. This Chapter regulates the cultivation, processing, manufacturing, testing, sale, delivery, and transportation of cannabis and cannabis products in a reasonable manner to protect the health, safety, and welfare of the residents of the City of Fairfield and to enforce rules and regulations consistent with State law. Nothing in this Chapter is intended to authorize the possession, use, or provision of cannabis for purposes that violate State law. The provisions of this Chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City and State. (Ord. No. 2020-07, § 1.)

10E.2 Legal Authority.

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of MAUCRSA, and any subsequent State legislation or regulations, the City of Fairfield is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State, shall be the minimum standards applicable in the City for all commercial cannabis activity. (Ord. No. 2020-07, § 1.)

10E.3 Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter.

Except as specifically authorized by this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution, and transportation (other than as provided under Business and Professions Code Section 26090(e)) of cannabis or cannabis products is expressly prohibited in the City. (Ord. No. 2020-07, § 1.)

10E.4 Compliance with State and Local Laws and Regulations.

It is the responsibility of the owner(s) of a commercial cannabis business to ensure that it operates in a manner that complies with all applicable State and local laws, any regulations promulgated thereunder, and any licensing or permit requirements or conditions of approval. Nothing in this Chapter shall be construed as authorizing any actions that violate State law or local law with respect to the operation of a commercial cannabis business. (Ord. No. 2020-07, § 1.)

10E.5 Definitions.

The following words and phrases, when used in this Chapter, shall have the meanings set forth below. Whenever words or phrases used herein are not defined, but are defined in Business and Professions Code Section 26001, such definitions shall apply.

(a)    "Bureau" means the Bureau of Cannabis Control with the California Department of Consumer Affairs.

(b)    "Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code.

(c)    "City Manager" means the City Manager of the City or his or her designee.

(d)    "Distributor" shall have the same meaning as that appearing in Section 26070 of the Business and Professions Code.

(e)    "Commercial cannabis business" means any business or operation which engages in medicinal or adult-use commercial cannabis activity.

(f)    "Commercial cannabis business permit" means a regulatory permit issued by the City pursuant to this Chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City. The initial permit and annual renewal are made expressly contingent upon the business’ ongoing compliance with all of the requirements of this Chapter and any applicable regulations adopted by the City.

(g)    "Dispensing" means any activity involving the retail sale of cannabis or cannabis products from a retailer.

(h)    "Limited-access area" means an area in which cannabis is stored or held and is only accessible to some licensed and authorized personnel.

(i)    "Manufactured cannabis" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application.

(j)    "Manufacturing facility" means a facility that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid commercial cannabis business permit for manufacturing from the City and a valid State license as required for manufacturing of cannabis products. "Manufacturing facility" includes facilities that use either volatile or non-volatile solvents.

(k)    "Microbusiness" shall have the same meaning as that contained in Section 26070(a)(3) of the Business and Professions Code.

(l)    "Non-Storefront retailer" shall mean a retailer that sells cannabis goods to customers exclusively through delivery. A non-storefront retailer has permitted premises to store cannabis goods for delivery, but the premises is not open to the public.

(m)    "Non-volatile solvent" means any solvent used in the extraction process that is not a volatile solvent as defined by State law. For purposes of this chapter, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing.

(n)    "Owner" means any of the following:

(1)    Each person identified as an "owner" of the commercial cannabis business on any permit, license, or other authorization issued by the State or the City.

(2)    Each person having an ownership interest in the commercial cannabis business, unless the interest is solely a security, lien, or encumbrance on the property that will be used by the commercial cannabis business.

(3)    If the commercial cannabis business is a publicly traded company, the chief executive officer or any person with an aggregate ownership interest of 5 percent or more.

(4)    Each person who participates in the direction, control, or management of the commercial cannabis business.

(5)    Any person designated by an owner as responsible for the day-to-day operations of the commercial cannabis business.

(o)    "Package" means any container or receptacle used for holding cannabis or cannabis products.

(p)    "Patient" or "qualified patient" shall have the same meaning as that contained in California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which includes within its definition a person who is entitled to the protections of California Health & Safety Code Section 11362.22.

(q)    "Person with an identification card" shall have the same meaning as that contained in California Health and Safety Code Section 11362.7.

(r)    "Processing" means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and nonmanufactured cannabis products.

(s)    "Retailer" shall have the same meaning as in Section 26070(a)(1) of the Business and Professions Code.

(t)    "State" means the State of California.

(u)    "State license" means a permit or license issued by the State of California, or one of its departments or divisions, under MAUCRSA and any subsequent State legislation, to engage in commercial cannabis activity. A State license alone will not authorize the holder to operate a cannabis business in the City, as State law also requires a permit or other authorization issued by a local jurisdiction.

(v)    "Storefront Retailer" shall mean a retailer that has a physical location (premises), including an address where commercial cannabis activities are conducted, and that sells cannabis goods to customers at its premises or by delivery.

(w)    "Topical cannabis" means a 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 California Health and Safety Code.

(x)    "Transport" means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by MAUCRSA which may be amended or repealed by any subsequent related State legislation. Transport can only be performed by licensed distributors and does not include deliveries of cannabis or cannabis products.

(y)    "Volatile solvent" shall have the same meaning as in Health and Safety Code Section 11362.3(b)(3).

(z)    "Youth center" means any public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to, private youth membership organizations or clubs; social service teenage club facilities; video arcades where 10 or more video games or devices are operated, and where minors are legally permitted to conduct business, or similar amusement park facilities; and parks, playgrounds or recreational areas specifically designed to be used by children and which have play equipment installed, including facilities designed for athletic activities, such as baseball, softball, soccer, or basketball, on public or private school grounds or City, county or State parks. "Youth center" shall not include any private martial arts, yoga, ballet, music, art studio or similar studio; private gym or athletic training facility; pizza parlor; dentist office or doctor’s office primarily serving children; or location which is primarily utilized as an administrative office or facility for youth programs or organizations. (Ord. No. 2020-07, § 1.)

10E.6 Commercial Cannabis Business Permit Required; Number of Permits Issued.

(a)    No person may engage in any commercial cannabis business or in any commercial cannabis activity within the City, including cultivation, manufacture, processing, laboratory testing, distributing, dispensing, or sale of cannabis or a cannabis product, unless the person (1) has a valid commercial cannabis business permit from the City; (2) has a valid State license; and (3) is currently in compliance with all applicable State and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activities.

(b)    Except as modified by City Council resolution, the following types and number of commercial cannabis business permits may be issued at any given time in the City:

(1)    Retailer – maximum of two (2).

(2)    Manufacturing – maximum of one (1).

(3)    Testing Laboratory – unlimited.

(4)    Commercial cultivation – zero (0).

(5)    Microbusiness – zero (0).

(6)    Distribution – zero (0).

(c)    Subsection (b) above is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City under each category. Nothing in this Chapter mandates that the City Council issue any or all of the authorized commercial cannabis business permits if it is determined that the applicants do not meet the standards which are established in the application requirements or the City Council determines that the issuance of any or all commercial cannabis business permits will adversely impact the public health, safety, or welfare. (Ord. No. 2020-07, § 1.)

10E.7 Persons Prohibited from Holding a Permit or from Employment with a Cannabis Business Permittee.

(a)    Any person, or any group or combination of persons, shall be prohibited from holding a commercial cannabis business permit or from employment with a cannabis business permittee in the City if any of the following apply:

(1)    The person is under the age of 21, or is otherwise not legally authorized to own, operate, or work within a commercial cannabis business under State law.

(2)    The person has been denied a commercial cannabis business permit or has had a permit suspended or revoked by any city, county, city and county or any State cannabis licensing authority.

(3)    The person was notified that they were conducting commercial cannabis activity in violation of this Code or other requirements and failed to cure the violation in a timely manner.

(4)    Evidence that the person is delinquent in payment of federal, State or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies.

(5)    As of June 1, 2020, the person was conducting commercial cannabis activity in the City in violation of local and State law.

(b)    All leases, subleases, or other agreements must be based on a monthly rate. No person shall be issued or hold a commercial cannabis business permit if such person has entered into a lease, sublease or other agreement for the use of property for such business at less than fair market value or such lease, sublease or agreement provides for the tenant to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the City. (Ord. No. 2020-07, § 1.)

10E.8 Application Procedures and Requirements.

(a)    The City Council shall adopt by resolution procedures to govern the application process, including application renewals for a commercial cannabis business permit. The form and content of the application for a permit or renewal of a permit shall be determined by the City Manager and shall include the following minimum information:

(1)    Location. The address and Assessor’s Parcel Number(s) of the location for the proposed commercial cannabis business, the name and contact information for the property owner(s), and evidence of the legal right to occupy and to use the proposed location for the operation of the proposed commercial cannabis business. Prior to submitting an application, the applicant must also obtain an approved Zoning Verification Letter from the City’s Planning Division to ensure the proposed location meets City zoning requirements, which shall be attached to the permit application.

(2)    Background Investigation of Owners. The applicant shall identify every cannabis business owner and shall submit for each: the name, address, telephone number, title, primary responsibility(ies), and a valid government-issued form of identification, together with any other related information requested by the Chief of Police for the purpose of conducting mandatory background checks.

(3)    State License. A description of the specific State cannabis license(s) that the applicant either has applied for, obtained, or plans to obtain.

(4)    State Seller’s Permit. A copy of a valid seller’s permit from the California Board of Equalization, Department of Tax and Fee Administration, or successor agency.

(5)    Operations. A description of the nature of the proposed commercial cannabis business within the proposed facilities, proposed hours of operation, product type, average production amounts, sources of cannabis, equipment, and delivery or distribution services.

(6)    Security Plan. A description and documentation of how the applicant will secure the premises in compliance with the requirements set forth in this Chapter.

(7)    Fire Safety Plan. A description of the emergency procedures in the event of fire or other emergency, including evacuation routes, location of fire extinguishers or other fire suppression equipment, and a description of the training for fire or other emergencies.

(8)    Storage and Transportation Plan. A description of the procedures for safely and securely storing and transporting all cannabis, cannabis products, hazardous materials that may be used by the business, and currency.

(9)    Community Relations Plan. A description of the applicant’s proposal for a public outreach and educational program for youth organizations and/or to educational institutions, related

to the risks of youth addiction to cannabis and available resources related to drugs, drug addiction, and prevention.

(b)    At the time of filing, each applicant shall pay an application fee in the amount established by resolution of the City Council to cover costs incurred by the City in the application process, including the mandatory criminal background check.

(c)    The City reserves the right to reject any or all applications. Prior to permit issuance, the City may modify, postpone, or cancel any request for applications, or the entire program under this Chapter without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under State law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any applicant. (Ord. No. 2020-07, § 1.)

10E.9 Permittee Selection Process.

(a)    The City Council shall adopt by resolution the procedures by which decisions shall be made regarding the issuance of any commercial cannabis business permit(s), consistent with the following provisions.

(b)    The City Manager shall conduct an initial screening of applications to determine whether they meet minimum eligibility requirements to receive a commercial cannabis business permit. Applications shall be denied by the City Manager during this initial screening for any of the following reasons:

(1)    The application is received after the designated date and time;

(2)    The application is not in the required form and/or is incomplete;

(3)    The proposed location does not meet zoning or other location requirements;

(4)    The applicant or any owner is prohibited from holding a commercial cannabis business permit under Section 10E.7;

(5)    The applicant has failed to pay the application fee; or

(6)    The results of the criminal background checks establish that the applicant or any owner has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business, including:

i.    A serious or violent felony conviction, as specified in Penal Code Section 667.5(c) or Section 1192.7(c).

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

iii.    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.

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

v.    Conviction of illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, not including cannabis-related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.

vi.    Conviction for unauthorized, unpermitted, or unlawful cannabis activities in any city, county or city and county in the 5 years immediately preceding the issuance of a cannabis business permit or cannabis business permit renewal.

(c)    If the City Manager determines in the initial screening that an application does not meet minimum eligibility requirements, the applicant shall be notified in writing that the application has been denied. Within 5 business days of the date of the decision, an applicant may file a request for immediate reconsideration. The City Manager shall schedule a meeting with the applicant within 10 business days of the request for reconsideration at which time the applicant may submit information demonstrating that the applicant meets the minimum eligibility requirements. Notwithstanding the provisions of Section 10E.13(a) of this Chapter, the decision of the City Manager on a request for reconsideration is final and not subject to appeal to the City Council.

(d)    The City Manager shall conduct a substantive evaluation of applications that are determined to meet minimum eligibility requirements, based on review criteria and a point system or equivalent quantitative evaluation scale established by the City Council. The City Manager may deny any application(s) that does not meet the threshold established by the City Council. An applicant whose application has been denied may appeal the City Manager’s decision to the City Council pursuant to the procedures set forth in this Chapter.

(e)    Following the conclusion of any appeals, a public comment period shall be provided concerning the remaining applications. Notice of the public comment period shall be sent to all property owners located within five hundred (500) feet of the proposed business location of each applicant. The public comment period shall run for a minimum of 15 days.

(f)    At the conclusion of the public comment period, the City Manager shall prepare a report for the City Council summarizing the applications, any concerns or support voiced by the community during the public comment period, and the results of the evaluation process.

(g)    The City Council shall conduct a public hearing and determine whether to approve or deny each application. The City Council’s decision shall be final. The Council shall have the right to deny an application if the Council determines that the granting of such permit would be contrary to public health, safety or welfare, or issuance of the permit would violate any State or local law. In addition to any other findings established by resolution, the Council shall make the following findings for approval of any permit:

(1)    The location and site characteristics of the proposed cannabis business are consistent with all applicable State laws and City standards and guidelines.

(2)    All provisions have been made to ensure that the operation of the commercial cannabis business will not create excessive demands for police service or other public services, and that the business will benefit the City.

(h)    The Council may impose such terms, conditions, and restrictions on the operation, management, and conduct of the commercial cannabis business, as deemed necessary to protect the health, safety, or welfare of the City or to ensure compliance with State or local laws. Any failure to comply with such terms, conditions, or restrictions shall constitute a violation of this Chapter.

(i)    The issuance of each commercial cannabis business permit shall be conditioned upon the permittee obtaining all required land use approvals. Upon the approval of a permit by the City Council, the permittee shall apply for any required land use approvals or entitlements for the business location. Land use approvals shall include compliance with the California Environmental Quality Act. The City Manager shall formally issue the commercial cannabis business permit(s) once the Community Development Director confirms that all of the required land use approvals have been obtained.

(j)    No permittee may begin operations, notwithstanding the issuance of a permit, until they have complied with all State and local laws and regulations, including but not limited to receipt of a State license.

(k)    If an application is denied, the applicant may not file a new application for one (1) year from the date of the denial.

(l)    Each person granted a commercial cannabis business permit shall be required to pay the permit fee established by resolution of the City Council, to cover the costs of administering the commercial cannabis business permit program. (Ord. No. 2020-07, § 1.)

10E.10 Permit Expiration and Renewal.

(a)    Issuance of a commercial cannabis business permit does not create a property right or land use entitlement. Each commercial cannabis business permit shall expire 12 months after the date of issuance. No person shall have any entitlement or vested right to receive a permit under this Chapter.

(b)    An application for renewal of a commercial cannabis business permit must be filed at least 60 calendar days, but not more than 90 calendar days, prior to the expiration date of the current permit.

(c)    The renewal application shall contain all the information required for new applications.

(d)    The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter.

(e)    The City Manager shall approve or conditionally approve an application to renew a commercial cannabis business permit, except where one or more of the following conditions exist:

(1)    The application is filed less than 60 days before its expiration.

(2)    The commercial cannabis business permit is suspended or revoked at the time of the application.

(3)    The commercial cannabis business has not been in regular and continuous operation in the 4 months prior to the renewal application.

(4)    The commercial cannabis business has failed to conform to the requirements of this Chapter, this Code, State law, any regulations adopted pursuant to this Chapter, or any permit conditions.

(5)    The permittee fails or is unable to renew its State license.

(f)    The City Manager may impose additional conditions on a renewal permit, if it is determined to be necessary to ensure compliance with State or local laws and regulations, or to preserve the public health, safety or welfare.

(g)    If the City Manager denies the application for renewal, he or she shall specify in writing the reasons for the denial and notify the applicant that the decision shall become final unless the applicant files an appeal pursuant to this Chapter.

(h)    An applicant whose application for renewal has been denied may not file a new application for one year from the date of the denial. (Ord. No. 2020-07, § 1.)

10E.11 Permit Suspension and Revocation.

(a)    Upon determining that a commercial cannabis business poses an imminent threat to public health, safety or welfare, the City Manager may take immediate action to temporarily suspend a commercial cannabis business permit, pending a hearing before the City Manager.

(b)    The City Council may revoke a commercial cannabis business permit for a violation of any State or local law, including, but not limited to, this Chapter; a violation of any condition or term of the commercial cannabis business permit; and/or a violation of any condition or term made a part of any other permit or entitlement granted to the commercial cannabis business or its owner. (Ord. No. 2020-07, § 1.)

10E.12 Effect of State License Suspension, Revocation, or Termination.

(a)    Suspension or expiration of a State license shall immediately and automatically suspend the permittee’s commercial cannabis business permit, until such time as the State reinstates or reissues the permittee’s State license. A commercial cannabis business is prohibited from operating within the City during the suspension or expiration of the State license.

(b)    Revocation of a State license shall automatically result in revocation of the permittee’s commercial cannabis business permit, and shall terminate the ability of the commercial cannabis business to operate within the City. At the City Manager’s discretion, the cannabis business owner may reapply for a commercial cannabis business permit at such time as it can demonstrate that the grounds for revocation of the State license no longer exist, the underlying deficiency has otherwise been cured, and the owner has applied for or obtained a new State license. (Ord. No. 2020-07, § 1.)

10E.13 Appeal of City Manager Decision to City Council; Hearing Procedures.

(a)    An aggrieved party may appeal any decision of the City Manager under this Chapter to the City Council by filing a written appeal with the City Clerk within 10 calendar days after receipt of notice of the decision of the City Manager. Date of receipt shall mean the date when a notice or written decision was personally delivered to the applicant or permittee, or the date when the notice was caused to be delivered by certified, first class mail. In cases in which the City can verify delivery of a notice to an applicant/permittee, or in which an applicant/permittee is documented as refusing delivery, lack of receipt of the notice cannot form the basis for an appeal.

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

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

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

(3)    Include a true and correct copy of the notice issued by the City Manager for which the appellant is appealing.

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

(5)    All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer or body to consider at the hearing.

(6)    An appeal fee, as established by Resolution of the City Council.

(c)    Failure of the City Clerk to receive a timely appeal constitutes a waiver of the right to appeal the decision of the City Manager. In this event, the decision of the City Manager shall be final and binding.

(d)    Where a permittee timely files a notice of appeal related to the renewal of their permit (including nonrenewal or the imposition of new permit conditions on a renewed permit), the decision of the City Manager shall not become effective until a final decision has been rendered and issued on the appeal by the City Council. An appeal filed by a commercial cannabis business that does not have an existing permit to operate shall not serve to allow such business to operate pending appeal.

(e)    If no appeal is timely filed in the event of a decision of nonrenewal, the commercial cannabis business permit shall expire at the conclusion of the term of the permit.

(f)    Upon receipt of a timely-filed notice of appeal, the City Clerk shall set the matter for hearing before the City Council. The hearing shall be scheduled within a reasonable time after receipt of the notice of appeal, but in no event later than 45 business days after filing. The appellant(s) listed on the notice of appeal shall be notified in writing of the date, time, and location of the hearing at least 10 days prior to the hearing date.

(g)    Any request by an appellant to continue a hearing must be submitted to the City Clerk in writing no later than 3 business days before the date scheduled for the hearing. The City Council may continue a hearing for good cause or on its own motion; however, in no event may the hearing be continued for more than 30 calendar days, unless approved by the appellant and the City Council.

(h)    The City Council shall hear the matter de novo and shall conduct the hearing pursuant to procedures established by the City Council. The appellant may present any information it deems relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply. The City may, at its discretion, record the hearing by stenographer or court reporter, audio recording, or video recording. If the appellant requests that such recording take place, the costs of the recording shall be deposited with the City at the time the notice of appeal and appeal fee are submitted to the City.

(i)    If the appellant, or their legal representative, fails to appear at the hearing, the City Council may cancel the hearing and send a notice thereof by first class mail. A cancellation of a hearing due to nonappearance shall constitute the appellant’s waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the City Manager’s notice of decision is final and binding.

(j)    Following the conclusion of the hearing, the City Council may affirm, reverse or modify the decision appealed. The decision of the City Council shall be issued in writing and served by first class mail on the appellant. If the appellant is not the owner of the real property in which the commercial cannabis business is located, or proposed to be located, a copy of the final decision may also be served on the property owner by first class mail to the address shown on the last equalized assessment roll. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the City pursuant to this Chapter.

(k)    The decision of the City Council is final and conclusive, and is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6. (Ord. No. 2020-07, § 1.)

10E.14 Changes in Business Location or Permit Information.

A commercial cannabis business permit is nontransferable to another location and may not otherwise be modified, except in accordance with this section. Failure to comply with this section is grounds for permit revocation.

(a)    At least 60 calendar days prior to an anticipated change to the location of the cannabis business, the permittee shall file a new application form with the City Manager, including a Zoning Verification Letter for the new location. The City Manager will hold an administrative public hearing to determine whether to approve or deny the change in location.

(b)    The permittee shall file an updated application form with the City Manager at least 30 calendar days prior to an anticipated change to any other information listed in the permit application, including but not limited to a change in contact information, change in trade name, or change in the security plan; provided, however, that a change in ownership shall comply with Section 10E.15.

(c)    Any application for a permit amendment shall be accompanied by a permit amendment fee, in the amount established by the City Council. (Ord. No. 2020-07, § 1.)

10E.15 Transfer of Cannabis Business Permit.

A commercial cannabis business permit is nontransferable to any other person except in accordance with this section. Any attempt to transfer a commercial cannabis business permit without complying with this section shall be deemed void and is grounds for permit revocation.

(a)    Prior to any transfer or change in ownership of a commercial cannabis business permit, the permittee shall file a new application with the City Manager. The application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as an application fee).

(b)    The City Manager shall review the application to determine whether the new owner(s) meet the minimum permit eligibility criteria. If the transfer involves a substantial change in ownership, the City Council shall hold a public hearing and approve or deny the transfer pursuant to the procedures for approval of a new permit application. A "substantial change in ownership" shall mean any change in the permittee’s business structure or ownership of the business entity that results in a change of more than 51% of the original ownership. A transferred permit shall be valid for a period of one year from the date of the City Council’s approval.

(c)    Notwithstanding the above, a permittee may change the form of business entity without applying for a permit transfer in either of the following scenarios; provided, that the permittee notifies the City Manager in writing of the change within 10 days of the date the change takes effect:

(1)    The ownership of the new business entity is substantially similar to original permittee business entity (at least 51% of the ownership is identical); or

(2)    If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under MAUCRSA; provided, that the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the City permit application) of the original permittee entity are the same as the new business entity.

(d)    No commercial cannabis business permit may be transferred when the permittee has been notified that its permit has been or may be suspended or revoked. (Ord. No. 2020-07, § 1.)

10E.16 City Business License Required.

Prior to commencing operations, a commercial cannabis business shall obtain a City business license. (Ord. No. 2020-07, § 1.)

10E.17 Building Permits and Inspection.

Prior to commencing operations, a commercial cannabis business shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), Fairfield Fire Department approvals, and Health Department approvals. (Ord. No. 2020-07, § 1.)

10E.18 Location and Design of Cannabis Businesses.

Cannabis businesses permitted to engage in Retail, Manufacturing and Testing Lab operations for cannabis and cannabis products are subject to the following zoning and location requirements:

(a)    Manufacturing and Testing Labs must be located in, and meet all development requirements for, the following zoning districts: IL (Limited Industrial), IG (General Industrial), IBP (Business and Industrial Park).

(b)    Retail must be located in, and meet all development requirements for, the following zoning districts: IL (Limited Industrial), CR (Regional Commercial), CS (Service Commercial), CT (Thoroughfare Commercial), CM (Mixed Commercial), IBP (Business and Industrial Park), HWT (Mixed-Use West Texas Street); provided, however, that Retail shall not be located on any commercial or industrial property within the area bounded by Travis Blvd., Pennsylvania Ave., and Gateway Blvd.

(c)    No commercial cannabis business, whether Retail, Manufacturing, or Testing Lab, shall be closer than six hundred (600) feet from any of the following sensitive uses that are in existence at the time a permit application is deemed complete: a public or private school providing instruction in kindergarten or any grades 1 through 12; a child day care center; or a youth center. The distance measured shall be the horizontal distance measured in a straight line from the property line of the parcel with the sensitive use to the closest property line of the lot on which the cannabis business is located.

(d)    Each proposed cannabis business shall:

(1)    Conform with the City’s general plan, any applicable specific plans, and design requirements.

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

(3)    Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.

(4)    Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development.

(5)    Be served by highways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate.

(6)    Be provided with adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose. (Ord. No. 2020-07, § 1.)

10E.19 Limitations on City’s Liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive the commercial cannabis business permit:

(a)    Execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold harmless the City and its officers, officials, employees, representatives, and agents, from any and all claims, damages, injuries, liabilities, or losses which arise out of, or which are in any way related to, the City’s issuance of the commercial cannabis business permit, the process used by the City in making its decision, or operations or activities of the commercial cannabis business or any of its officers, employees or agents.

(b)    Maintain insurance with the types of coverage and in the amounts determined necessary by the City Manager.

(c)    Reimburse the City for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s commercial cannabis business permit or the operations of a commercial cannabis business in the City. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed by this section. (Ord. No. 2020-07, § 1.)

10E.20 Records and Recordkeeping.

(a)    Each commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any time upon reasonable request of the City, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and fees paid or due to be paid. On an annual basis, the owner shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager.

(b)    Each commercial cannabis business shall maintain a current register of the names and contact information (including the address and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager upon reasonable request.

(c)    Each commercial cannabis business shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, and laboratory testing processes until purchase as set forth in MAUCRSA.

(d)    Each commercial cannabis business shall allow City officials access to the business’s books, records, and accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of determining compliance with this Chapter. Books, records, accounts, and any and all relevant data or documents will be produced or made available no later than 24 hours after receipt of the City’s request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware. (Ord. No. 2020-07, § 1.)

10E.21 Employee Background Checks Required.

(a)    Before the date of hire or within 30 calendar days of issuance of a commercial cannabis business permit, whichever is later, the permittee shall identify each prospective employee and submit for each: the name, address, telephone number, title, primary responsibility(ies), and a valid government-issued form of identification, together with any other related information requested by the Chief of Police for the purpose of conducting mandatory background checks.

(b)    Evidence that a prospective employee has been convicted of any of the following offenses shall be grounds for denial of employment. Employers who wish to hire an individual despite such conviction shall appeal to the Chief of Police, who at his or her sole discretion may issue a written waiver.

(1)    A violent or serious felony conviction, as specified in Penal Code Section 667.5(c) or Section 1192.7(c).

(2)    A felony conviction involving fraud, deceit, or embezzlement.

(3)    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.

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

(5)    Conviction of illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, not including cannabis-related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.

(c)    Violation of this section shall be grounds for immediate suspension of the commercial cannabis business permit. (Ord. No. 2020-07, § 1.)

10E.22 Security Measures.

(a)    A commercial cannabis business 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 commercial cannabis business. Except as may otherwise be determined by the City Manager, these security measures shall include, but shall not be limited to, all of the following:

(1)    Perimeter fencing and exterior lighting systems (including motion sensors) for after-hours security, as approved by the Chief of Police and/or the Community Development Director.

(2)    Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business.

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

(4)    Except for live growing clone plants which are lawfully being displayed for sale at a commercial cannabis business, all cannabis and cannabis products shall be stored in a secured and locked vault or vault equivalent. All safes and vaults shall be compliant with Underwriters Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products, including live clone plants that are being displayed for sale, shall be kept in a manner as to prevent diversion, theft, and loss.

(5)    Installing 24-hour security surveillance cameras of at least 4K-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The permittee shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible in real-time by the Chief of Police or their designee(s), and that it is compatible with the City’s software and hardware. Video recordings shall be maintained for a minimum of 90 days and shall be made available to the Chief of Police or their designee(s) upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business and shall be capable of enlargement via projection or other means. Internet Protocol address information shall be provided to the Fairfield Police Department by the commercial cannabis business, to facilitate remote monitoring of security cameras by the Department. Each business shall have network security protocols that are certified by Underwriters Laboratories.

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

(7)    Panic buttons shall be installed in all commercial cannabis businesses with direct notification to the Fairfield Police Department dispatch and shall be configured to immediately alert dispatch for the Fairfield Police Department.

(8)    Having a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State Bureau of Security and Investigative Services.

(9)    Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building.

(10)    Security personnel shall be on site 24 hours a day or alternative security as authorized by the City Manager, and must have a verified response security patrol when closed. 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, with such approval not to be unreasonably withheld.

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

(12)    Entrance areas are to be locked at all times and under the control of a designated responsible party that is either: (a) an employee of the commercial cannabis business; or (b) a licensed security professional.

(13)    Each commercial cannabis business shall have an accounting software system in place to provide point of sale data as well as audit trails of both product and cash, where applicable.

(14)    Each commercial cannabis business shall demonstrate to the Chief of Police or their designee compliance with the State’s track and trace system for cannabis and cannabis products, as soon as it is operational.

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

(16)    Emergency access and emergency evacuation plans that are in compliance with State and local fire safety standards.

(17)    Installation of high-pitch frequency loitering deterrent devices.

(b)    Each commercial cannabis business shall identify a designated security representative to the City, who shall be available to meet with the City Manager upon reasonable notice regarding any security related measures or operational issues. The designated security representative shall maintain on the premises of the business, annually update, and present to the City Manager upon request, a copy of the current security plan that meets the following requirements:

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

(2)    Identifies all managers of the commercial cannabis business and their contact phone numbers.

(3)    Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager’s office.

(4)    Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.

(5)    Identifies a sufficient number of licensed, interior and exterior security personnel who will monitor individuals inside and outside the commercial cannabis business, the parking lot, and any adjacent property under the business’ control.

(6)    Confirms that the licensed security personnel shall regularly monitor the parking lot to ensure it is free of individuals loitering or causing a disturbance and is cleared of employees and their vehicles one-half hour after closing.

(c)    Each commercial cannabis business shall comply with the storage and transportation plan provided to the City during the application and permitting process, or as updated with the consent of the City.

(d)    A commercial cannabis business shall notify the City Manager within 24 hours after discovering any of the following:

(1)    Significant discrepancies identified during inventory of cannabis products.

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

(3)    The loss or unauthorized alteration of records related to cannabis, customers, employees, or agents of the commercial cannabis business.

(4)    Any other breach of security. (Ord. No. 2020-07, § 1.)

10E.23 Restriction on Alcohol & Tobacco Sales and Consumption.

(a)    No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the commercial cannabis business.

(b)    No person shall cause or permit the sale or tobacco products on or about the premises of the commercial cannabis business.

(c)    No person shall consume cannabis, cannabis products, tobacco or alcohol on the premises of any commercial cannabis business. (Ord. No. 2020-07, § 1.)

10E.24 General Operating Requirements.

(a)    Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the City.

(b)    No cannabis or cannabis products, or graphics depicting cannabis or cannabis products, shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time.

(c)    Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business 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 commercial cannabis business shall ensure that such system is compatible with the City’s record-keeping systems, and can produce historical transactional data for review. The system must be approved by the City Manager prior to being used by the permittee.

(d)    All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with State and local regulations.

(e)    Each commercial cannabis business shall provide the City Manager with the name, 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.

(f)    Signage and Notices.

(1)    In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of the City’s Sign Ordinance, including, but not limited to, seeking the issuance of a City sign permit.

(2)    No signs shall obstruct any entrance, exit, or window of the commercial cannabis business.

(3)    Each entrance 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 commercial cannabis business is prohibited.

(4)    Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of-way.

(5)    No banners, flags, a-frames, inflatables or billboards, or other prohibited signs may be used at any time.

(6)    In accordance with State law, or as provided in the commercial cannabis business permit, the permittee shall agree to be prohibited from advertising any commercial cannabis business located in the City utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising. This paragraph is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.

(g)    Minors.

(1)    Persons under the age of 21 shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least 21 years of age.

(2)    Notwithstanding the above, persons who are at least 18 years old and in possession of a valid physician’s recommendation and/or Health and Safety Code Section 11362.71 identification card ("Medical Marijuana Card") may be granted access to a retail cannabis business for the sole purpose of purchasing medicinal cannabis or medicinal cannabis products consistent with the physician’s recommendation.

(3)    The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of 21 is permitted to enter the premises.

(h)    Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the City Manager determines is a more effective method or technology:

(1)    An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

(2)    An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.

(i)    The original copy of the commercial cannabis business permit and the City-issued business license shall be posted inside the commercial cannabis business in a location readily visible to the public.

(j)    The commercial cannabis business shall prohibit loitering by persons outside the facility on the premises, and shall notify the Fairfield Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner.

(k)    Minimum training standards shall be established for all employees. The City Manager shall have the discretion to require additional training should the City identify deficiencies or non-compliance issues with City or State requirements. (Ord. No. 2020-07, § 1.)

10E.25 Operating Requirements for Store Front Retailers.

In addition to the general operating requirements of Section 10E.24, Store Front Retailers are subject to the following requirements:

(a)    Retailers shall verify the age and all necessary documentation of each potential customer to ensure they are not under the age of 18. If the potential customer is 18 to 20 years old, retailer shall confirm the customer’s possession of a valid physician’s recommendation and/or Medical Marijuana Card. Physician’s recommendations are not to be obtained or provided at the retail location. For adult-use purchases, retailers shall verify that all customers are at least 21 years old. Retailers shall require customers to show their identification and any necessary documentation in order to gain access to the retailer and at the point of sale station at the time of purchase.

(b)    Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities.

(c)    Only the quantity of cannabis and cannabis products necessary to meet the daily demand shall be readily available for sale on-site in the retail sales area. Additional product must be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

(d)    All restroom facilities shall remain locked and under the control of management.

(e)    Retailers shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this section.

(1)    Sale or delivery of cannabis goods through a pass-through window or a slide-out tray to the exterior of the premises is prohibited.

(2)    Retailers shall not operate a drive-in or drive-through. Cannabis goods shall not be sold and/or delivered to any persons within a motor vehicle.

(3)    All cannabis goods sold by a retail business shall be contained in child-resistant packaging.

(4)    Point-of-sale areas and areas where cannabis goods are displayed for sale shall be recorded on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.

(5)    Retailers shall hire or contract for security personnel who are at least 21 years of age to provide security services for the retail premises. All security personnel hired or contracted for by the permittee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

(f)    A retailer shall establish limited-access areas and permit only authorized individuals to enter such areas. Authorized individuals may include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area; provided, that all such individuals are at least 21 years of age. Unless the authorized individual is an employee of the retailer, he or she shall be escorted at all times by an employee of the retailer. The retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area(s), and shall make the log available to the City Manager or Chief of Police upon request.

(g)    Operating hours shall be limited to the hours of 6:00 a.m. through 10:00 p.m., seven days a week, unless specified otherwise in the commercial cannabis business permit. (Ord. No. 2020-07, § 1.)

10E.26 Operating Requirements for Non–Store Front Retailers.

In addition to the general operating requirements of Section 10E.24, Non-Store Front Retailers within the City, and any Store Front Retailers that also provide delivery services, are subject to the following requirements:

(a)    Retailers shall verify the age and the necessary documentation of each customer to ensure that medical customers are at least 18 years of age. If the potential customer is 18 to 20 years old, the retailer shall confirm the customer’s possession of a valid physician’s recommendation and/or Medical Marijuana Card. Physician recommendations are not to be obtained or provided at the retail or delivery location. For adult-use purchases, retailers shall verify that all customers are at least 21 years old.

(b)    Operating hours shall be limited to the hours of 6:00 a.m. through 10:00 p.m., seven days a week, unless specified otherwise in the commercial cannabis business permit.

(c)    Prior to commencing delivery operations, and prior to the use of any new car in delivery operations, a Retailer shall provide the City with the following information for all vehicles that will be used to deliver cannabis or cannabis products: proof of ownership or a valid lease; the year, make, model, color, license plate number, and Vehicle Identification Number; and proof of insurance. The permittee shall notify the City in writing of any changes to this information within 30 calendar days of a change.

(d)    Delivery of cannabis or cannabis products to any address located on publicly owned land or to a building leased by a public agency is prohibited.

(e)    Any kiosk, iPad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, that facilitates, directs, or assists in the retail sale or delivery of cannabis or cannabis products at a location other than one permitted by the City, is prohibited. (Ord. No. 2020-07, § 1.)

10E.27 Operating Requirements for Testing Labs.

In addition to the general operating requirements of Section 10E.24, Testing Labs are subject to the following operational requirements:

(a)    Testing Labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100 and shall be subject to State and local law. Each Testing Lab shall be subject to any future regulations adopted by the State.

(b)    Testing Labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.

(c)    Testing Labs shall obtain and maintain ISO/IEC 17025 accreditation as required by the Bureau of Cannabis Control.

(d)    Testing Labs shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the Bureau unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the Bureau.

(e)    Testing Labs shall ensure that a testing laboratory employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing required by State law and that the testing laboratory employee transports the sample to the testing laboratory.

(f)    Except as provided by State law, a Testing Lab shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with State law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol.

(g)    A Testing Lab may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A Testing Lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a Testing Lab for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received. (Ord. No. 2020-07, § 1.)

10E.28 Operating Requirements for Cannabis Manufacturing Facilities.

(a)    Any compressed gases used in the manufacturing process shall not be stored on any property within the City in containers that exceed the amount which is approved by the Fairfield Fire Department and authorized by the commercial cannabis business permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to the total number of tanks authorized by the Fairfield Fire Department.

(b)    Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, ethanol and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.

(c)    If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for safe use as provided in this section. The CO2 must be of at least ninety-nine percent purity.

(d)    Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.

(e)    A manufacturing facility that uses a professional grade closed loop system must provide the Community Development Department with certification from an engineer licensed by the State, or a certified industrial hygienist, demonstrating that the system was commercially manufactured, is safe for its intended use, and was built to industry standards, including but not limited to:

(1)    The American Society of Mechanical Engineers (ASME);

(2)    American National Standards Institute (ANSI);

(3)    Underwriters Laboratories (UL); or

(4)    The American Society for Testing and Materials (ASTM).

The certification document must contain the signature and stamp of the professional engineer or industrial hygienist and serial number of the extraction unit being certified.

(f)    Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Standards Code.

(g)    Manufacturing facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.

(h)    Manufacturing facilities creating cannabis extracts must develop standard operating procedures, manufacturing practices in line with State and industry standards, and a training plan prior to producing extracts for the marketplace.

(i)    Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely.

(j)    Parts per million for one gram of finished extract cannot exceed State standards for any residual solvent or gas when quality assurance tested. (Ord. No. 2020-07, § 1.)

10E.29 Operating Requirements for Out-of–City Delivery Services.

A commercial cannabis business that is located outside of the City and proposes to provide delivery services into the City shall comply with the following requirements, prior to commencing deliveries within the City:

(a)    Obtain from the City a business license and a cannabis delivery permit authorizing the delivery of cannabis and cannabis products within City limits. A commercial cannabis business permit shall not be required.

(b)    An application for a cannabis delivery permit shall include evidence of a valid State license for a commercial cannabis business located outside of the City, on behalf of which delivery services are to be provided; the year, make, model, license plate number, and Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis or cannabis products; and a nonrefundable fee in the amount established by the City Council.

(c)    A copy of the cannabis delivery permit shall be retained by all drivers while performing delivery services within the City.

(d)    Delivery of cannabis or cannabis products to any address located on publicly owned land or to a building leased by a public agency is prohibited.

(e)    Any kiosk, iPad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, that facilitates, directs, or assists in the retail sale or delivery of cannabis or cannabis products at a location other than one permitted by the City, is prohibited. (Ord. No. 2020-07, § 1.)

10E.30 Promulgation of Regulations.

(a)    In addition to any regulations adopted by the City Council, the City Manager is authorized, with the approval of the City Council, to establish any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing operation of commercial cannabis businesses, the City’s oversight of commercial cannabis businesses, or any other subject determined to be necessary to carry out the purposes of this Chapter.

(b)    Regulations shall be published on the City’s website.

(c)    Regulations promulgated by the City Manager shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all State and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager. (Ord. No. 2020-07, § 1.)

10E.31 Community Relations.

(a)    Each commercial cannabis business shall provide to the City, and to all businesses and residences located within 100 feet of the business, the name, telephone number, and email address of a community relations representative to whom notice of problems associated with the commercial cannabis business can be provided.

(b)    During the first year of operations following receipt of a permit, the owner, manager, and community relations representative from each commercial cannabis business shall attend meetings with the City Manager, and other interested parties as deemed appropriate by the City Manager, to discuss the costs, benefits, and other community issues arising as a result of implementation of this Chapter. After the first year of operation, the owner, manager, and community relations representative from each commercial cannabis business shall meet with the City Manager upon reasonable request.

(c)    Each commercial cannabis business shall develop a City-approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. Prior to commencing operations, the permittee shall enter into a community relations agreement with the City setting forth the terms and conditions under which the permittee shall implement its community relations program. (Ord. No. 2020-07, § 1.)

10E.32 Fees Deemed Debt to the City of Fairfield.

The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable by an administrative process set forth in this Code, or in any court of competent jurisdiction. (Ord. No. 2020-07, § 1.)

10E.33 Permittee Responsible for Violations.

The person to whom a permit is issued pursuant to this Chapter shall be responsible for all violations of State and local law in or about the premises of the commercial cannabis business, whether the violation is committed by the permittee or an employee or agent. (Ord. No. 2020-07, § 1.)

10E.34 Inspection and Enforcement.

(a)    The City Manager may enter a commercial cannabis business upon 24-hours’ notice for the purpose of making reasonable inspections to observe and enforce compliance with this Chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this Code, state law, and other applicable laws and regulations. Any cannabis business issued a permit pursuant to this Chapter may be required to demonstrate, upon demand by the City, that the source and quantity of any cannabis or cannabis products found upon the premises is in full compliance with any applicable local or State law or regulation.

(b)    It is unlawful for any owner or other person having responsibility over the operation of the commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, or to review or copy records, recordings or other documents required to be maintained under this Chapter or State law. It is unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained under this Chapter or State law. (Ord. No. 2020-07, § 1.)

10E.35 Violations declared a public nuisance.

Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance. (Ord. No. 2020-07, § 1.)

10E.36 Each violation a separate offense.

Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City. Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief, revocation of any permit issued pursuant to this Chapter, disgorgement and payment to the City for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney 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 commercial cannabis business or persons related to, or associated with, the commercial cannabis business. (Ord. No. 2020-07, § 1.)

10E.37 Criminal Penalties.

Each and every violation of this Chapter may, in the discretion of the District Attorney or City Attorney, be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the County jail for a period of not more than 6 months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. (Ord. No. 2020-07, § 1.)

10E.38 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. No. 2020-07, § 1.)