Chapter 5.80
CANNABIS BUSINESS PERMIT
Sections:
5.80.030 Commercial cannabis activities prohibited unless specifically authorized by this chapter.
5.80.040 Compliance with state and local laws and regulations.
5.80.060 Evidence of cannabis owners and/or employees background check required.
5.80.070 Persons prohibited from holding a permit or from employment with a cannabis business.
5.80.080 Maximum number of authorized cannabis businesses permitted.
5.80.090 City’s reservation of rights.
5.80.100 Procedure guidelines and review criteria to evaluate cannabis business applications.
5.80.120 Issuance of a cannabis business permit.
5.80.140 Reapplying for a cannabis business permit.
5.80.150 Renewal of a cannabis business permit.
5.80.160 Suspension or revocation of a cannabis business permit.
5.80.170 Effect of state license suspension or revocation.
5.80.190 Cannabis business permit – Nontransferable.
5.80.200 Right to occupy and to use property.
5.80.210 Records and recordkeeping.
5.80.010 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 (“MAUCRSA”) to accommodate the needs of medically ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same. 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 MAUCRSA, while imposing sensible regulations on the use of land to protect the city’s residents, neighborhoods, and businesses from disproportionately negative impacts. It is the purpose and intent of this chapter to regulate cannabis retailers and cannabis microbusinesses in a responsible manner to protect the health, safety, and welfare of the residents of the city and to enforce rules and regulations consistent with state law. (Ord. 23-01 § 5, 2023.)
5.80.020 Legal authority.
This chapter is adopted pursuant to the authority granted to the city by Sections 5 and 7 of Article XI of the California Constitution, and the provisions of the MAUCRSA. (Ord. 23-01 § 5, 2023.)
5.80.030 Commercial cannabis activities prohibited unless specifically authorized by this chapter.
Except as specifically authorized by this chapter, all commercial cannabis activity is expressly prohibited in the city. Only cannabis retailers and cannabis microbusinesses that comply with the provisions of this chapter and Chapter 17.84 CMC are authorized to operate in the city. (Ord. 23-01 § 5, 2023.)
5.80.040 Compliance with state and local laws and regulations.
It is the responsibility of the owners and/or operators of any cannabis business within the city limits to ensure that they operate in a manner compliant with this chapter, all applicable state and local laws, and any regulations promulgated thereunder, including but not limited to the MAUCRSA. (Ord. 23-01 § 5, 2023.)
5.80.050 Definitions.
For purposes of this chapter, the following definitions shall apply. All definitions pertaining to cannabis regulation that appear in Business and Professions Code Section 26001, as codified by the MAUCRSA, are hereby incorporated by reference. Any California code sections set forth below shall include any amendments that are made to those sections.
“Applicant” means a person or entity that submits an application for a cannabis business permit under this chapter.
“Cannabis” has the same meaning as in Section 26001 of the Business and Professions Code. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
“Cannabis business” means a cannabis retailer or cannabis microbusiness.
“Cannabis business permit” or “permit” means a permit issued by the city pursuant to this chapter, to a cannabis business that must be obtained before any commercial cannabis activity may be conducted in the city.
“Cannabis microbusiness” has the same meaning as in Section 26001 of the Business and Professions Code. “Cannabis microbusiness” means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) a cannabis retailer, (2) a manufacturer, (3) a cultivation site with canopy space of less than 10,000 square feet, and (4) a cannabis distributor. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses.
“Cannabis products” has the same meaning as in Section 11018.1 of the Health and Safety Code. “Cannabis products” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
“Cannabis retailer” has the same meaning as in Section 26001 of the California Business and Professions Code and shall mean any establishment which engages in the retail sale of cannabis for medicinal or adult-use purposes consistent with the MAUCRSA.
“Commercial cannabis activity” has the same meaning as in Section 26001 of the Business and Professions Code. “Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products.
“Cultivation” has the same meaning as in Section 26001 of the Business and Professions Code. “Cultivation” means any activity involving the planting, growing, harvesting, or trimming of cannabis.
“Cultivation site” means a location where commercial cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.
“Delivery” has the same meaning as in Section 26001 of the Business and Professions Code. “Delivery” means the commercial transfer of cannabis or cannabis products to a customer.
“Director” means the director of community development.
“Distribution” has the same meaning as in Section 26001 of the Business and Professions Code. “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees.
“Distributor” has the same meaning as in Section 26001 of the Business and Professions Code. “Distributor” means a cannabis business that is authorized to engage in the distribution of cannabis and cannabis products.
“Licensee” has the same meaning as in Section 26001 of the Business and Professions Code. “Licensee” also means any person holding a license to engage in commercial cannabis activity issued by the Department of Cannabis Control.
“Manufacture” has the same meaning as in Section 26001 of the Business and Professions Code. “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
“Manufacture area” is the area of the cannabis business site where cannabis or cannabis products are manufactured.
“Manufacturer” has the same meaning as in Section 26001 of the Business and Professions Code. “Manufacturer” means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
“Manufacturing site” means a cannabis business 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.
“Owner” means any of the following: a person with an aggregate ownership interest of 20 percent or more in the cannabis business, unless the interest is solely a security, lien or encumbrance; or an individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:
1. A member of the board of directors of a nonprofit.
2. A general partner of a cannabis business that is organized as a partnership.
3. A nonmember manager or manager of a cannabis business that is organized as a limited liability company.
4. The trustee(s) and all persons who have control of the trust and/or the cannabis business that is held in trust.
5. An individual with the authority to provide strategic direction and oversight for the overall operations of the commercial cannabis business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.
6. An individual with the authority to execute contracts on behalf of the cannabis business.
7. When an entity is an owner in a cannabis business, all entities and individuals with a financial interest in the entity shall be disclosed to the city and may be considered owners of the cannabis business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or nonmember managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individuals remain.
“Permittee” means a person or entity that has received a cannabis business permit from the city as authorized under this chapter.
“Person” shall mean any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.
“Secured area” is all cultivation areas, manufacture areas and storage areas, and includes areas where cannabis or cannabis products are loaded onto vehicles or other conveyances for delivery or transportation.
“State license” means any license required by the state of California for the operation of a cannabis business, including but not limited to licenses issued under Division 10 of the Business and Professions Code.
“Storage area” is any area where cannabis or cannabis products are stored. (Ord. 23-01 § 5, 2023.)
5.80.060 Evidence of cannabis owners and/or employees background check required.
A. Any person who is an owner, employee or who otherwise works for a cannabis business must be legally authorized to do so under applicable state law.
B. Cannabis business owners, operators, investors, managers, and employees shall be required to submit to a criminal background check for themselves and all persons in their employment.
C. The city shall conduct criminal background checks which must at a minimum identify the following:
1. Whether the individual applying for employment has ever been convicted of a violent felony as defined by California Penal Code Section 667.5 or equivalent offenses in other states;
2. Whether the owner or employee has ever been convicted of a felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or
3. Whether the owner or employee has ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.
D. Evidence of a conviction of any the offenses enumerated above shall be grounds for denial of employment or denial of a cannabis business permit.
E. After the issuance of a cannabis business permit, if any owner or employee is found to violate subsection (C) of this section, this shall be grounds for suspension or revocation of the cannabis business permit pursuant to the procedures set forth in CMC 5.80.160. (Ord. 23-01 § 5, 2023.)
5.80.070 Persons prohibited from holding a permit or from employment with a cannabis business.
A. A person shall not be eligible to obtain a cannabis business permit from the city or be employed by a cannabis business in the city if any of the following apply:
1. A criminal background check demonstrates the applicant or employee has committed any of the crimes identified in CMC 5.80.060(C);
2. The applicant has been denied a state cannabis license or permit, or has had a cannabis license or permit suspended or revoked by any city, county, city and county or any other state cannabis licensing authority, except if a license or permit was denied due to the fact that a limited number of licenses or permits was issued by a local jurisdiction, or the denial was based on cannabis related criminal offenses that are no longer criminal offenses under California State law;
3. In the past five years, the applicant was notified by the state, county, or city that it was conducting commercial cannabis activity in violation of city ordinances, codes, and requirements, and failed to cure the violation in a timely manner;
4. Evidence that the applicant is delinquent in payment of federal, state, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;
5. The applicant, or any of its officers, directors, owners, managers, or employees is under 21 years of age;
6. The applicant, or any of its officers, directors, or owners, or any person who is managing or is otherwise responsible for the activities of the cannabis business, or any employee who participates in the dispensing, cultivation, processing, manufacturing, delivery, or transporting cannabis or cannabis products or who participates in the daily operations of the cannabis business, has been convicted of a violent felony, a felony or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude; or
7. The applicant did not pay to the city the required application and processing fees. (Ord. 23-01 § 5, 2023.)
5.80.080 Maximum number of authorized cannabis businesses permitted.
Only one cannabis business per every 15,000 residents shall be permitted to operate in the city, with every fraction thereof rounded down. (Ord. 23-01 § 5, 2023.)
5.80.090 City’s reservation of rights.
The city reserves the right to reject any or all applications for a cannabis business permit. Prior to such permit issuance, the city may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the cannabis program, or any permit potentially authorized under this chapter, may be cancelled at any time prior to permit issuance. The city further reserves the right to request and obtain additional information from any candidate submitting an application. An application may be rejected for any of the following reasons:
A. The application was received after the designated time and date of the deadline.
B. The application did not contain the required elements, exhibits, or was not organized in the required format.
C. The application did not provide all the information required in the permit application (i.e., was substantially incomplete).
D. The applicant did not comply with the requirements of this chapter. (Ord. 23-01 § 5, 2023.)
5.80.100 Procedure guidelines and review criteria to evaluate cannabis business applications.
A. By resolution, the city council shall adopt procedure guidelines and review criteria for the city’s evaluation of cannabis business permit applications.
B. The procedure guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.
C. The review criteria shall include detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to particular sets of criteria.
D. The scoring on review criteria shall be used to determine which candidates will be eligible to participate in the interview or other selection process as determined by city council resolution.
E. The city manager shall be authorized to prepare any necessary forms and adopt any necessary rules or procedures to implement the procedure guidelines and review criteria.
F. At the time of filing, each applicant shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the application process.
G. For applicants with 10 or more employees, the applicant shall attest that the applicant will enter into a labor peace agreement, as defined in Business and Professions Code Section 26001(aa), and will abide by the terms of the agreement, and the applicant shall provide a copy thereof to the city. For applicants that have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that within 30 days of issuance of a cannabis permit from the city, the applicant will enter into and abide by the labor peace agreement. (Ord. 23-01 § 5, 2023.)
5.80.110 Application process.
A. The city council shall establish a preapplication process, whereby proposed applicants shall be prescreened to determine if they are eligible to apply for a cannabis business permit. The prescreening shall be comprised of conducting a background check of all owners and managers of the cannabis business, and a zoning clearance to ensure that the proposed location of the cannabis business complies with CMC 17.84.030(B) and 17.84.070(C). Those businesses that are determined eligible in the prescreening process will have the opportunity to apply for a cannabis business permit.
B. Application for a cannabis business permit will be reviewed per the procedure guidelines and review criteria adopted by resolution by the city council.
C. The community development director, or his or her designee, shall verify whether a proposed business location is properly zoned to allow a cannabis business to operate at the location.
D. Only approved applications meeting guidelines set by city council resolution will be eligible to participate in the final selection process which includes applying for a conditional use permit.
E. Applications shall be vetted by the city manager and a team of his/her choice consistent with review criteria established by city council resolution. At the conclusion of the vetting process, the city manager shall prepare a report for consideration by the city council.
F. The city council shall select the final candidates that may submit an application for a conditional use permit to operate a cannabis business in the city.
G. The city manager shall not issue a cannabis business permit to a cannabis business until the applicant has obtained a conditional use permit, entered into a development agreement with the city, and had a security plan approved and the cannabis business site inspected by the chief of police. (Ord. 23-01 § 5, 2023.)
5.80.120 Issuance of a cannabis business permit.
A. A cannabis business permit issued pursuant to this chapter shall expire 12 months after the date of issuance. The date of issuance shall be the date that the city manager and/or chief of police has inspected the cannabis business site and determined the cannabis business complies with the security requirements set forth in CMC 17.84.080. A cannabis business permit may be renewed as provided in CMC 5.80.150.
B. A cannabis business permit shall be exercised by the cannabis business within six months of issuance. Exercised shall be when the permitted use commences on the site. (Ord. 23-01 § 5, 2023.)
5.80.130 Scope of approval.
A. If a location has not been in regular and continuous operation in the preceding four months, it shall be considered abandoned unless mitigating circumstances occur which were beyond the control of the permittee and an extension has been authorized by the city manager.
B. The approval of a new use shall terminate all rights and approvals of a cannabis business occupying the same site or location. (Ord. 23-01 § 5, 2023.)
5.80.140 Reapplying for a cannabis business permit.
If an application is denied due to a disqualifying factor such as failing a background check or not complying with any state or local jurisdictions regulatory requirements in which legal or administrative action has been taken, a new application may not be filed by the applicant for one year from the date of the denial. This section shall not apply to an applicant not being awarded a permit resulting from a limited number of permits being issued by the city. (Ord. 23-01 § 5, 2023.)
5.80.150 Renewal of a cannabis business permit.
A. An application for renewal of a cannabis business permit shall be filed with the city manager at least 60 calendar days prior to the expiration date of the current permit.
B. The renewal application shall contain all the information required for new applications, or as otherwise required by the city manager.
C. 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.
D. An application for renewal of a permit may be rejected if any of the following exists:
1. The application is filed less than 60 days before its expiration or a shorter time period which shall be at the discretion of the city manager.
2. The permit is suspended or revoked at the time of the application.
3. The permittee has not been in regular and continuous operation in the four months prior to the renewal application or the approved extension of the deadline from the city manager.
4. The permittee has failed to comply with the requirements of the permit, this chapter, any regulations adopted pursuant to this chapter, any conditions of approvals for the permit, or any conditions of approval for land use approvals in connection with the permit.
5. The permittee fails or is unable to renew its state of California license.
6. If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis regulatory permit.
E. The city manager is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the city manager is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety, or welfare. Appeals from the decision of the city manager shall be handled pursuant to this chapter.
F. If a renewal application is denied, a person may file a new application pursuant to this chapter not sooner than one year from the date of the denial. (Ord. 23-01 § 5, 2023.)
5.80.160 Suspension or revocation of a cannabis business permit.
A cannabis business permit may be suspended or revoked by the city manager for any violation of any state or local laws, this municipal code, rules, standards, policies, procedures, regulations, or conditions of approval related to cannabis in this chapter or adopted pursuant to this chapter, and any violation of any conditions of approval of a land use entitlement issued to the cannabis business. (Ord. 23-01 § 5, 2023.)
5.80.170 Effect of state license suspension or revocation.
A. Suspension of a license issued by the state of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the city until the state of California or its respective department or division reinstates or reissues the state license.
B. Revocation of a license issued by the state of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the city until the state or its respective department or division takes appropriate action. Should the state revoke a license, the cannabis business owner may reapply for a local permit at such time as it can demonstrate that the grounds for revocation of the license by the state no longer exist or that the underlying deficiency has otherwise been cured. (Ord. 23-01 § 5, 2023.)
5.80.180 Appeals.
A. Appeals of the city manager’s decision regarding any of the following shall be appealable to the city council: (1) denial of advancement to submit a cannabis business permit application; (2) revocation or suspension of a permit; (3) denial of renewal of an application for a permit; or (4) additions of conditions to a permit. Any decisions of the city council pursuant to this chapter are final and conclusive.
B. Within 10 calendar days after the date of a decision of the city manager to revoke, suspend or deny an initial or renewed permit application or to add conditions to a permit, an applicant or permittee may appeal such action by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper.
C. The 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 city council to consider at the hearing.
6. An appeal fee as established by resolution of the city council.
D. Upon receipt by the city clerk of a timely filed notice of appeal, the city clerk shall forward such appeal to the city council, and shall schedule a hearing within 30 days, or as soon thereafter as is available, and shall notify the appellant of the date, time and location of the haring.
E. The city council shall hear and consider the testimony of the appellant, the city manager, and/or their witnesses, as well as any documentary evidence properly submitted for consideration. The following rules shall apply at the appeal hearing:
1. Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, collateral, undue, and repetitious testimony may be excluded.
2. The city manager bears the burden of proof to establish the grounds for the nonrenewal, suspension or revocation of a permit by a preponderance of evidence. Appellant bears the burden of proof regarding why they should have been allowed to apply for a cannabis business permit.
3. The issuance of the city manager’s notice constitutes prima facie evidence of grounds for the denial, nonrenewal, suspension or revocation.
4. The city council may accept and consider late evidence not submitted initially with the notice of appeal upon a showing of good cause. The city council shall determine whether a particular fact or set of facts amount to good cause on a case-by-case basis.
5. The appellant may bring a language interpreter to the hearing at their sole expense.
6. The city may, at its discretion, record the hearing by stenographer or court reporter, audio recording, or video recording. If the appellant requests from the city that a court reporter, stenographer, or videographer be used, appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.
7. If the appellant, or their legal representative, fails to appear at the appeal hearing, the city council may cancel the appeal hearing and send a notice thereof to the appellant by certified, first class mail to the address(es) stated on the notice of appeal. A cancellation of a hearing due to nonappearance of the appellant shall constitute the appellant’s waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the city manager’s notice of decision is final and binding.
F. Following the conclusion of the city council hearing, the city council shall issue a written decision within 30 days that determines if the action appealed from is affirmed or overturned and specifies the reasons for the decision. The written decision shall provide that it is final and conclusive and is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6 for judicial review. A copy of the written decision shall be served by certified, first class mail on the appellant. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the city pursuant to this chapter.
G. Failure of the city clerk to receive a timely appeal constitutes a waiver of the right to appeal the notice issued by the city manager. In this event, the city manager’s notice of decision shall be final.
H. In the event a written notice of appeal is timely filed, the nonrenewal, suspension, or revocation of a permit shall not become effective until a final decision has been rendered and issued by the city council or appointed hearing officer. Notices of appeal not served in a timely manner or served by a nonoperational business shall not serve to allow such business to operate pending appeal.
I. If no appeal is timely filed in the event of a decision of nonrenewal, the cannabis business’s permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision supporting suspension or revocation, the suspension or revocation shall become effective upon the expiration of the period for filing a written notice of appeal. (Ord. 23-01 § 5, 2023.)
5.80.190 Cannabis business permit – Nontransferable.
A. A cannabis business permit shall not be transferred.
B. Any attempt to transfer a cannabis business permit either directly or indirectly in violation of this section is hereby declared a violation of the permit and this chapter. Such a purported transfer shall be deemed a ground for revocation of the permit. (Ord. 23-01 § 5, 2023.)
5.80.200 Right to occupy and to use property.
Prior to the city’s issuance of a cannabis business permit pursuant to this chapter, any person intending to open and to operate a cannabis business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location. If the proposed location will be leased from the property owner, the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this chapter and consents to the operation of the cannabis business on the owner’s property. (Ord. 23-01 § 5, 2023.)
5.80.210 Records and recordkeeping.
A. Each owner and operator of a 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 permit issued pursuant to this chapter), or at any time upon reasonable request of the city, each cannabis business shall file a sworn statement detailing the number and amount of sales by the cannabis business during the previous 12-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, each owner and operator 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 a gross receipts financial audit, where applicable, as determined by the city.
B. Each owner and operator of a cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis business. The register required by this paragraph shall be provided to the city manager upon a reasonable request.
C. All cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing processes until purchase as set forth in the MAUCRSA. (Ord. 23-01 § 5, 2023.)