Chapter 5.28 MEDICINAL AND ADULT-USE CANNABIS

A. The purpose and intent of this chapter is to establish a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of commercial cannabis and cannabis products as allowed by and in accordance with state law and regulations.

B. If commercial cannabis dispensary, cultivation, manufacturing, testing, distribution, transportation, and delivery activities and facilities were permitted to be established or if existing business were permitted to distribute, sell, cultivate, test, transport, or deliver cannabis, or manufacture cannabis products without appropriate regulation, such uses might be established in areas that would conflict with the requirements of the general plan, be inconsistent with surrounding uses, or be detrimental to the public health, safety and welfare, or the operation of such facilities may be in conflict with applicable state law and regulations. The city council desires to enact reasonable regulations pertaining to cannabis dispensary, cultivation, manufacturing, testing, distribution, transportation, and delivery facilities to ensure that such uses do not conflict with the general plan, are not inconsistent with surrounding uses, and are not detrimental to the public health, safety and welfare, and the operation of such facilities is in compliance with applicable state law and regulations.

C. Commercial cannabis activities shall be permitted, upon application and approval of a regulatory permit, in accordance with the criteria and procedures set forth in this chapter.

D. The provisions of this chapter shall be interpreted and applied consistent with all applicable state laws and regulations. To the extent any provision of this chapter conflicts with or contradicts any applicable state law or regulation, or establishes a criterion, procedure, standard, requirement, or regulation that does not meet the minimum standards of any applicable state law or regulation, the requirements of the applicable state law or regulation shall take precedence. To the extent any provision of this chapter imposes a criterion, procedure, standard, requirement, or regulation that is more restrictive than that imposed by any applicable state law or regulation, the more restrictive provisions of this chapter shall take precedence, unless otherwise prohibited by applicable state law or regulation. The city manager or designee shall make interpretations and determinations under this subsection for consistency with all applicable state laws and regulations, subject to the appeal procedures of section 5.28.290.

E. The provisions of this chapter shall be interpreted and applied to avoid conflict with any other provision of this chapter. The city manager or designee shall make interpretations under this chapter to avoid any such conflict. If the city manager or designee is unable to make a good faith interpretation to avoid any such conflict, the city manager or designee shall make a determination as to which conflicting provision shall take precedence and shall report such determination to the city council.

F. The provisions of this chapter shall apply only to commercial cannabis activities as provided for in this chapter. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.020 Cannabis activities.

A. Commercial cannabis activities permitted under this chapter shall comply with the licensing and regulatory requirements of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) of 2017 as codified in California Business and Professions Code Section 26000 et seq. and as may be amended from time to time, and regulations issued by the state pursuant thereto.

B. Commercial cannabis activities permitted under this chapter shall apply for and obtain the appropriate license issued by the state for the type of commercial cannabis business for which a regulatory permit is issued under this chapter.

C. This chapter shall not apply to the following uses:

1. A person who cultivates, possesses, stores, or transports cannabis or cannabis products exclusively for his or her personal use, or for that of qualified patients of the primary caregiver, and who does not provide, donate, sell, or distribute cannabis or cannabis products to any other person or qualified patient;

2. A clinic licensed pursuant to Chapter 1 of Division 2 of the California Health and Safety Code;

3. A healthcare facility licensed pursuant to Chapter 2 of Division 2 of the California Health and Safety Code;

4. A facility licensed pursuant to Chapter 2 of Division 2 of the California Health and Safety Code;

5. A residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the California Health and Safety Code;

6. A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the California Health and Safety Code;

7. A residential hospice; or

8. A home health agency licensed pursuant to Chapter 8 of Division 2 of the California Health and Safety Code, as long as such use complies with applicable law, including, but not limited to, Section 11362.5 et seq. of the California Health and Safety Code.

D. "Cannabis" shall have the meaning set forth in California Business and Professions Code Section 26001(f). "Marijuana" and "cannabis" may be used interchangeably, but shall have the same meaning.

E. "Cannabis cultivation facility" includes any facility where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities, or any facility that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. "Cultivation" as used in this chapter shall include both "cultivation" and "nursery" as those terms are defined in California Business and Professions Code Sections 26001(l) and (aj).

F. "Cannabis delivery" is the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform owned and controlled by the retailer.

G. "Cannabis dispensary" is a facility authorized under this chapter where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. As used in this chapter, the term "cannabis dispensary" also means "cannabis retailer" or "cannabis retail facility" and vice versa.

H. "Cannabis distribution facility" is a facility used to facilitate the procurement, sale, and transport of cannabis or cannabis products between cannabis facilities and to customers as allowed under this chapter.

I. "Cannabis manufacturing facility" is a facility that produces, prepares, propagates, or compounds manufactured cannabis, as described in subsection N of this section, 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.

J. "Cannabis testing facility" is a facility that offers or performs tests of cannabis or cannabis products.

K. "Cannabis transporter" is a person or entity that transports or transfers cannabis or cannabis products between cannabis facilities for the purposes of conducting commercial cannabis activity authorized pursuant to this chapter.

L. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this chapter and Division 10 of the California Business and Professions Code Section 26000 et seq.

M. "Customer" is a natural person twenty-one (21) years of age or over or a primary caregiver.

N. "Manufactured cannabis" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product.

O. "Owner" means any of the following: a person with an aggregate ownership interest of twenty percent (20%) or more in the person applying for a regulatory permit or permittee, unless the interest is solely a security, lien, or encumbrance; the chief executive officer of a nonprofit or other entity; a member of the board of directors of a nonprofit or other entity; or an individual who will be participating in the direction, control, or management of the person applying for the regulatory permit or permittee.

P. "Physician’s recommendation" means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.7 of the California Health and Safety Code.

Q. "Premises" means the designated structure or structures and land specified in the regulatory permit application that is owned, leased, or otherwise held under the control of the applicant or permit holder where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one permit holder.

R. "Primary caregiver" has the same meaning as in Section 11362.7 of the California Health and Safety Code.

S. "Retail sale" means the sale and delivery of cannabis or cannabis products to customers. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.030 Definitions.

Words and phrases not specifically defined in this chapter shall have the meaning ascribed to them as defined in the following sources:

A. The Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5); and

B. The Medical Marijuana Program Act of 2004 (California Health and Safety Code Sections 11362.7 through 11362.83); and

C. The California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008; and

D. The consolidated provisions of the Medical Cannabis Regulation and Safety Act (MCRSA) and the Adult Use of Marijuana Act (AUMA) (Proposition 64) known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) of 2017 (enacted by SB 94), as amended from time to time. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.040 City council review and approval.

A. The issuance of a regulatory permit as required by this chapter shall be subject to the prior review and approval by the city council.

B. Each commercial cannabis regulatory permit approved by the city council and issued pursuant to this chapter shall be for both medicinal and adult-use cannabis and cannabis products, without distinction. Notwithstanding the foregoing, the city council may (1) restrict the retail sale and delivery of cannabis and cannabis products from a cannabis dispensary or cannabis retail facility issued a commercial regulatory permit under this chapter to the sale and delivery of medicinal cannabis and medicinal cannabis products only, or, alternatively, (2) allow adult-use cannabis and cannabis products retail sales but restrict retail sales and deliveries of cannabis and cannabis products to Greenfield residents to qualified patients and primary caregivers only.

C. In addition to the requirements set forth in this chapter, as a condition of issuance of a regulatory permit as required by this chapter, the city council may impose such additional terms and conditions on the issuance of the regulatory permit and the operation of the facility as the city council deems appropriate.

D. The development agreement and operations plan required by this chapter, and the design and layout of a cannabis facility authorized under this chapter, shall be subject to the review and approval of the city council prior to the issuance of a regulatory permit under this chapter.

E. If the city manager or designee revokes a regulatory permit as allowed by this chapter, as soon thereafter as is reasonable under the circumstances, the city council shall be informed of such revocation and the city council shall review and approve such revocation. If the city council does not approve the revocation, the city manager or designee shall reinstate such regulatory permit upon such additional terms and conditions as the city council deems appropriate. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.050 Regulatory permit required.

A. Prior to initiating operations and as a continuing requisite to conducting commercial cannabis activities from a physical location within the city, the persons or legal representative of the persons wishing to conduct commercial cannabis activities shall first obtain a regulatory permit from the city manager or designee under the terms and conditions set forth in this chapter.

B. The form of regulatory permit shall specify whether the regulatory permit is for medicinal use, adult use, or both.

C. Beginning on April 28, 2023, each regulatory permit shall expire on June 30th of each year. For regulatory permits issued or renewed between January 1st and June 30th, the regulatory permit shall expire on June 30th of the following year. For regulatory permits issued or renewed between July 1st and December 31st, the regulatory permit shall expire on June 30th of the following year. Renewal of regulatory permits shall be as provided for in section 5.28.120.

D. Regulatory permits are not transferable and any attempt to assign or transfer such permits shall render the permit null and void.

E. The number of each type of commercial cannabis facility permitted in the city may be limited or restricted by resolution of the city council.

F. Applications for the required regulatory permit may be submitted during those application periods as may be designated from time to time by the city manager or designee. Each application submitted and deemed complete by the city during the application period will be evaluated and processed in accordance with application regulations and procedures adopted pursuant to section 5.28.310.

G. Except as provided for in subsection H of this section, the holder of a regulatory permit may apply for and be issued a regulatory permit for more than one type of regulatory permit; provided the permitted premises are separate and distinct.

H. The holder of a regulatory permit for a testing facility shall not hold a regulatory permit for any other cannabis facility for which a regulatory permit is required under this chapter, shall not own or have ownership interest in such a facility, and shall not employ an individual who is also employed by any other permittee that does not hold a testing facility regulatory permit.

I. The legal representative of the regulatory permit applicant shall file an application for a regulatory permit with the city manager or designee upon forms provided by the city and shall pay an "application fee" and a "processing fee" as required by this chapter and as established by resolution adopted by the city council as amended from time to time. A separate application shall be made for each type of cannabis facility, i.e., dispensary, cultivation, manufacturing, testing, or distribution facility, for each license classification specified in California Business and Professions Code Section 26050; and for each location at which a cannabis facility will operate. An application for a regulatory permit for each type of cannabis facility shall include, but shall not be limited to, the following information:

1. The legal name, and any other names, under which the facility will operate.

2. The address of the location and the on-site telephone number, if known, of the cannabis facility.

3. The following information for each owner, officer, director, and manager of the cannabis facility:

a. Complete legal name and any alias(es), address, and telephone number;

b. Date and place of birth;

c. Copy of a valid state- or U.S. government-issued photo identification card or license;

d. Applicant’s seller’s permit number or indication that the applicant is currently applying for a seller’s permit;

e. A list of all criminal convictions, other than infractions for traffic violations, the jurisdiction of the conviction(s), and the circumstances thereof;

f. Copy of LiveScan application;

g. A detailed explanation of the owner’s, officer’s, director’s, or manager’s involvement with any other cannabis facility, including, but not limited to, the name and address of the cannabis facility; the capacity in which the owner, officer, director, or manager is or was involved with the cannabis facility; whether the cannabis facility is or was the subject of any criminal investigation or prosecution, civil investigation, administrative action or civil lawsuit; whether the owner, officer, director, or manager or the cannabis facility with which the owner, officer, director, or manager is or was associated has ever been denied, or is in the process of being denied, registration, a permit, a license or any other authorization required to operate a cannabis facility in any other city, county or state; and whether the owner, officer, director, or manager or the cannabis facility with which the owner, officer, director, or manager is or was associated has ever had a registration, license, permit or any other authorization required to operate a cannabis facility in any other city, county or state, suspended or revoked, and the reasons therefor; and

h. A detailed explanation of the owner’s, officer’s, director’s, or manager’s involvement with any other retail business in the city of Greenfield, including, but not limited to, the name and address of such business; the type of business; the capacity in which the owner, officer, director, or manager is or was involved with the business; whether the business is or was the subject of any criminal investigation or prosecution, civil investigation, administrative action or civil lawsuit; whether an owner, officer, director, or manager of the business with which the owner, officer, director, or manager is or was associated has ever been denied, or is in the process of being denied, registration, a permit, a license or any other authorization required to operate a business requiring licensing through the state of California in any other city, county or state; and whether an owner, officer, director, or manager of the business with which the owner, officer, director, or manager is or was associated has ever had a registration, license, permit or any other authorization required to operate a business that requires a license in the state of California, or any other city, county or state, suspended or revoked, and the reasons therefor.

4. An operations plan which shall be in conformance with the requirements of this chapter and shall include, at a minimum:

a. A list of the names, addresses, telephone numbers, and responsibilities of each owner, officer, director, and manager of the facility.

b. The hours and days of operation for the facility.

c. For cannabis dispensary applications only, whether delivery service of cannabis to any location outside the cannabis facility will be provided and the extent of such service.

d. A site plan and floor plan of the facility denoting the layout of all areas of the cannabis facility, including, as applicable, storage/warehousing, cultivation, nursery, reception/waiting, dispensing, manufacturing, testing, distribution, and all ancillary support spaces, and the relationship of the facility to adjacent properties and land uses.

e. A security plan, including lighting, alarms, fencing, and video cameras, to ensure the safety of persons, and to protect the premises from theft, vandalism, and fire. The security plan shall address both interior and exterior areas of the facility and its premises.

f. The cannabis cultivation and manufacturing procedures to be utilized at the facility, including, as applicable, a description of how chemicals and fertilizers will be stored, handled, and used; extraction and infusion methods; the transportation process; inventory procedures; track and trace program and procedures; quality control procedures; and testing procedures.

g. Procedures for identifying, managing, and disposing of contaminated, adulterated, deteriorated or excess cannabis product.

h. Procedures for inventory control to prevent diversion of cannabis to persons or uses not allowed under state law or this chapter, employee screening, storage of cannabis, personnel policies, and recordkeeping procedures.

i. An odor management plan detailing steps that will be taken to ensure that the odor of cannabis will not emanate beyond the exterior walls of the facility, including as necessary the installation and use of air purification systems and/or air scrubbers.

j. For cannabis distribution and transportation facilities and distributors and transporters only, procedures for transporting cannabis and cannabis products from cultivation and manufacturing facilities to the distribution center, quality assurance and inspection by the distributor, transportation to and from a cannabis testing facility, and distribution and transportation to a cannabis dispensary.

k. For cannabis testing facilities only, procedures for testing cannabis and cannabis products for concentration, pesticides, mold, other contaminants, and purity.

l. If the cannabis cultivation, manufacturing, or dispensary facility will include on-site testing facilities, describe proposed testing procedures and processes.

m. Policies and procedures for adopting, monitoring, implementing, and enforcing all requirements of this chapter.

5. The name and address of the owner and lessor of the premises and a copy of the lease or other such proof of the legal right to occupy and use the premises and a statement from the owner or agent of the owner of the real property where the facility will be located demonstrating the landowner has acknowledged and consented to permit dispensary, cultivation, distribution, manufacturing, or transportation activities to be conducted on the property by the applicant.

6. The name and account number of all savings accounts, checking accounts, investment accounts and trusts associated with the operation of the facility.

7. Provide evidence that the proposed location is located beyond at least a one thousand foot (1,000') radius from a school providing instruction in kindergarten or any grades one through twelve (12), day care center, or youth center that is in existence at the time the regulatory permit is issued.

8. Authorization for the city manager or designee to seek verification of the information contained within the application, including, but not limited to, a criminal history investigation by the city with the California Department of Justice and any other law enforcement agencies.

9. A statement in writing by the applicant that he or she will, to the extent allowed by law, give preference in employee hiring to residents of the city.

10. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is complete, true and accurate.

11. Any such additional and further information as is deemed necessary by the city manager or designee to administer this section or to show that the cannabis facility and its ownership and operation is in compliance with the provisions of this chapter. (Ord. 564 §2, 2023; Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.060 Background check.

All applicants for a regulatory permit for a cannabis facility, including any owner, officer, director, or manager responsible for the day-to-day operations and activities of the cannabis facility, shall be required to submit to a LiveScan criminal history records check conducted by the city. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.070 Grounds for denial.

A. The city manager or designee may reject an application upon making any of the following findings:

1. The applicant made one or more false or misleading statements or omissions on the registration application or during the application process;

2. The applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter;

3. The cannabis facility or its location is in violation of any building, zoning, health, safety, or other provision of this code, or of any state or local law which substantially affects the public health, welfare, safety, or morals, or the facility or its location is not permitted in the proposed area, or the issuing or continuation of a regulatory permit would be contrary to the public health, welfare, safety, or morals;

4. The applicant, or any of its officers, directors, owners, managers, or employees is under twenty-one (21) years of age;

5. 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 facility, has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the city manager or designee determines that the applicant, owner, or permittee is otherwise suitable to be issued a regulatory permit, and granting the regulatory permit would not compromise public safety, the city manager or designee shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, owner, or permittee and shall evaluate the suitability of the applicant, owner, or permittee to be issued a regulatory permit based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the city manager or designee shall include, but not be limited to, those offenses and convictions set forth in California Business and Professions Code Sections 26057(b)(4)(A) through (E), as said code may be amended from time to time. Except as provided in subsection 26057(b)(5) of said code, a prior conviction where the sentence, including any term of probation, incarceration, or supervised release, is completed for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a regulatory permit. The foregoing notwithstanding, conviction for any controlled substance felony subsequent to issuance of a regulatory permit shall, however, be grounds for revocation of a regulatory permit or denial of the renewal of a regulatory permit;

6. The applicant, or any of its officers, directors, owners, or managers, is a licensed physician making patient recommendations for medicinal cannabis;

7. The applicant, or any of its officers, directors, owners, or managers, has been sanctioned by the city, the state of California, or any city or county for unauthorized commercial cannabis activities or has had a registration, license, or regulatory permit revoked under this chapter in the previous three years immediately preceding the date the application is filed with the city;

8. The applicant did not pay to the city the required application and processing fees as set forth in section 5.28.080.

B. The city manager or designee may place reasonable conditions upon registration if grounds exist for denial of the registration and those grounds may be removed by the imposition of those conditions. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.080 Fees and charges.

A. Prior to operating in the city, the operator of each cannabis facility shall timely and fully pay all fees associated with the registration of that facility. The fees shall be as set forth in the schedule of fees and charges established by resolution of the city council, including, but not limited to, the following:

1. "Application fee" for accepting a registration application; due and payable in full at the time a registration application is submitted;

2. "Processing fee" for the cost to the city of processing a registration application and reviewing, investigating, and evaluating each application in accordance with the application regulations and procedures adopted pursuant to section 5.28.310 to determine eligibility for issuance of a regulatory permit; due and payable in full at the time a registration application is submitted;

3. "Permit issuance fee" for the cost to the city of preparing a development agreement, city council review and approval of the development agreement and the regulatory permit, and preparation and issuance of the regulatory permit as authorized by the city council, due and payable in full at the time the city issues a regulatory permit;

4. "Annual operating fee" for the cost to the city of operating a cannabis regulatory program; due and payable in full at the time the city issues a regulatory permit;

5. "Amended registration fee" for the cost to the city of reviewing amendments or changes to the registration form previously filed on behalf of the cannabis facility; due and payable in full at the time amendments or changes to a registration form are submitted to the city;

6. "Regulatory permit renewal fee" for the cost to the city of processing an application to renew a regulatory permit; due and payable in full at the time application is made to renew a regulatory permit; and

7. Any fees for inspection or investigation that are not included within the other fees associated with registration; due and payable in full upon request of the city. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.090 Development agreement.

A. Prior to operating in the city and as a condition of issuance of a regulatory permit, the operator of each cannabis facility shall enter into a development agreement with the city setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety, and welfare.

B. A development agreement, and amendments thereto, shall be adopted in accordance with chapter 16.37 and section 17.16.160, as applicable, as each may be amended from time to time, and the provisions of the development agreement. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.100 Cessation of operations.

In the event a cannabis facility that receives a regulatory permit ceases to operate for any reason, the city manager or designee shall consider the next qualified applicant on the waiting list, if any, and, at the discretion of the city manager, provide an opportunity for new applicants to be considered for a permit. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.110 Change in location--Updated registration form.

A. Any time the dispensing, cultivation, manufacturing, testing, distribution, or transportation facility location specified in the regulatory permit is changed, the applicant shall re-register with the city manager. The process and the fees for re-registration shall be the same as the process and fees set forth for registration in sections 5.28.050 and 5.28.080.

B. Within fifteen (15) calendar days of any other change in the information provided in the registration form or any change in status of compliance with the provisions of this chapter, including any change in the cannabis facility’s ownership or management members, the applicant shall file an updated registration form with the city manager for review along with a registration amendment fee, as set forth in section 5.28.080. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.120 Renewal or revocation of regulatory permit.

A. The renewal or revocation of a regulatory permit under this chapter shall be subject to the prior review and approval of the city manager or designee. Any action taken by the city manager or designee pursuant hereto may be appealed to the city council in accordance with the appeal procedures of section 5.28.290.

B. No regulatory permit issued under this chapter may be renewed by the city manager or designee unless:

1. A new registration form in the form of a regulatory permit renewal application package has been filed with the city manager as set forth in section 5.28.050 a minimum of sixty (60) days prior to the expiration date of the regulatory permit.

2. The annual renewal registration fee, as set forth in section 5.28.080, has been paid to the city; and

3. The cannabis facility and its owners and managers all meet the requirements of this chapter for registration.

C. As a condition of renewing a regulatory permit under this chapter, the city manager or designee may impose such additional terms and conditions on the renewal of the regulatory permit and the operation of the facility as the city manager or designee deems appropriate.

D. The city manager or designee may elect not to renew a regulatory permit issued under this chapter if:

1. The cannabis facility and its owners and managers have not complied at all times with all the requirements for registration as set forth in this chapter;

2. Any of the conditions or circumstances of subsection 5.28.070A or 5.28.280D, singularly or in combination, have occurred;

3. Any employee who participates in the dispensing, cultivation, processing, manufacturing, delivery, transporting, distribution, or testing of cannabis or cannabis products, or who participates in the daily operations of the cannabis facility, has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the regulatory permit applies. In determining which offenses are substantially related, the city manager or designee shall consider those offenses and convictions set forth in California Business and Professions Code Sections 26057(b)(4)(A) through (E), as said code may be amended from time to time. Except as provided in subsection 26057(b)(5) of said code, a prior conviction where the sentence, including any term of probation, incarceration, or supervised release, is completed for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related; or

4. The city manager or designee is aware of any other facts or circumstances which indicate that renewal of the regulatory permit will be detrimental to the health, safety, or welfare of the residents of the city.

E. The city manager or designee may revoke a regulatory permit issued under this chapter, upon such notice as deemed appropriate by the city manager or designee, if:

1. The cannabis facility and its owners and managers have not complied at all times with all the requirements for registration as set forth in this chapter;

2. Any of the conditions or circumstances of subsection 5.28.070A or 5.28.280D, singularly or in combination, have occurred;

4. The city manager or designee is aware of any other facts or circumstances which indicate that continued operation of the cannabis facility will be detrimental to the health, safety, or welfare of the residents of the city. (Ord. 564 §2, 2023; Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.130 Limitations on city’s liability.

A. To the fullest extent permitted by law, the city shall not assume any liability whatsoever with respect to approving any regulatory permit pursuant to this chapter or the operation of any cannabis facility approved pursuant to this chapter.

B. As a condition of approval of a regulatory permit as provided in this chapter, the applicant or its legal representative shall:

1. Execute an agreement indemnifying the city from any claims, damages, injuries, or liabilities of any kind associated with the registration or operation of the cannabis facility or the prosecution of the cannabis facility or its owners, managers, directors, officers, or employees for violation of federal or state laws;

2. Maintain insurance in the amounts and of the types that are acceptable to the city manager or designee;

3. Name the city as an additionally insured on all city-required insurance policies;

4. Agree to defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a regulatory permit; and

5. Agree to reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge related to the city’s approval of a regulatory permit. 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 the operator of its obligation hereunder. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.140 Additional terms and conditions.

Based on the information set forth in the application, the city manager or designee may impose reasonable terms and conditions on the proposed operations of the cannabis facility in addition to those specified in this chapter. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.150 Signage.

Cannabis dispensary use signage for sites zoned C-H commercial highway or I-L light industrial shall be limited to a maximum area of one hundred (100) square feet on two (2) sides of the building and that no exterior building signage shall project beyond the height of the roof or roof canopy. Notwithstanding section 17.62.070, exterior signage for cannabis cultivation, manufacturing, and processing facilities or cannabis dispensary operations in other zoning districts shall be limited to one exterior building sign not to exceed fifteen (15) square feet in area, and door and/or window signage not to exceed ten (10) square feet in area; such signs shall not be directly illuminated. Signage shall otherwise be reviewed and approved by the city in accordance with chapter 17.62. (Ord. 558 §2, 2022; Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.160 Cultivation, dispensary, manufacturing, testing, distribution, and transportation locations.

A. A cannabis dispensary facility may be located in any highway commercial (C-H), retail business (C-R), professional office (P-O), or light industrial (I-L) zoning district.

B. A cannabis cultivation facility may be located in any highway commercial (C-H), light industrial (I-L), heavy industrial (I-H), or agricultural research and development overlay (RDO) zoning district.

C. A cannabis manufacturing facility may be located in any highway commercial (C-H), light industrial (I-L), heavy industrial (I-H), or agricultural research and development overlay (RDO) zoning district.

D. A cannabis testing facility may be located in any professional office (P-O), highway commercial (C-H), or light industrial (I-L) zoning district.

E. A cannabis distribution or transportation facility may be located in any light industrial (I-L), heavy industrial (I-H), or agricultural research and development overlay (RDO) zoning district.

F. The highway commercial (C-H) zoning district as referenced in subsections A, B, C, and D of this section do not include any such district with a regional commercial center design (RCO) overlay.

G. A permitted cannabis facility shall operate at a single location only. At the discretion of the city manager or designee, multiple buildings on the same or adjacent site may be considered a single cannabis facility operating at a single location.

H. No cannabis facility shall be located within one thousand feet (1,000') of a school providing instruction in kindergarten or any grades one through twelve (12), day care center, or youth center that is in existence at the time the regulatory permit is first issued, measured in a straight line from the nearest property line of the school, day care center, or youth center to the closest property line of the lot on which the cannabis is located, without regard to intervening structures. For purposes of this paragraph, school, day care center, or youth center does not include any private school, home study program, day care center, or youth center in which such programs or services are primarily conducted in private homes.

I. No person under the age of twenty-one (21) shall be allowed in any cannabis facility or at its location.

J. All cannabis cultivation shall be conducted only in the interior of enclosed structures, facilities and buildings, and all cultivation operations including all cannabis plants at any stage of growth shall not be visible from the exterior of any structure, facility or building containing the cultivation of cannabis.

K. The identification of zoning districts in which cannabis facilities may be located as provided for in this section shall be interpreted and applied consistent with the requirements of and the allowed zoning districts specified in title 17, or as such determination may otherwise be made in accordance with the provisions of title 17. If there is any conflict between the identification of allowed zoning districts of this section and the requirements of title 17, or the zoning district determinations made in accordance with the provisions of title 17, the provisions of title 17, and the determinations made in accordance therewith, shall take precedence.

L. All permitted locations shall be subject to issuance of a conditional use permit in accordance with the procedures and requirements of title 17. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.170 Dispensing of cannabis.

A. Cannabis shall be sold, transferred, dispensed, or otherwise distributed to customers only from a licensed retail premises which is a physical location from which commercial cannabis activities are conducted. No sales, transfers, dispensing, or distribution of any kind to the public or customers shall be from a cultivation, manufacturing, distribution, transportation, or testing facility; except as may otherwise be allowed under section 5.28.200.

B. A cannabis dispensary or retail facility may be closed to the public. A dispensary or retailer may conduct sales exclusively by delivery.

C. Cannabis dispensaries or retailers shall sell, transfer, dispense, or otherwise distribute cannabis only to customers authorized to purchase, receive, or possess cannabis or cannabis products.

D. Cannabis sales, transfers, dispensing, or distribution to customers shall only occur inside the premises of the cannabis dispensary or retail facility. The foregoing notwithstanding, delivery services may be provided by the cannabis dispensary or retail facility as provided for in section 5.28.180.

E. No medicinal cannabis provided to a primary caregiver may be provided by the primary caregiver to any person other than the primary caregiver’s qualified patient for whose care the primary caregiver is responsible.

F. No cannabis shall be provided to any customer more than once per day. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.180 Delivery of cannabis.

A. A cannabis dispensary or retailer may operate a delivery service subject to the requirements of Section 26090 of the California Business and Professions Code.

B. Cannabis deliveries to customers shall only be made by and from a state-licensed retailer.

C. Cannabis deliveries to customers shall only be during the normal operating hours of the cannabis dispensary or retailer during which it is open to customers.

D. A list of the names and cellular telephone contact numbers for all employees of a cannabis dispensary or retailer delivering cannabis or cannabis products shall be provided to the city manager or designee. Such list shall at all times be kept current and up to date. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016).

5.28.190 Testing of cannabis.

A. A cannabis testing facility holding a regulatory permit issued under this chapter shall have adopted a standard operating procedure using methods consistent with general requirements for the competence of testing and calibration activities, including sampling and using verified methods.

B. A cannabis testing facility shall obtain and maintain ISO/IEC 17025 accreditation and hold a valid state-issued testing laboratory license.

C. A cannabis testing facility shall comply with the requirements and procedures set forth in Sections 26100 through 26106 of the California Business and Professions Code.

D. A cannabis cultivation, manufacturing, or dispensing facility may perform on-site testing for the purposes of quality assurance. Such on-site testing is not in lieu of the testing otherwise required under this section, any such on-site testing facility need not be licensed by the state, and on-site testing by the permittee does not exempt the permittee from the testing requirements of Sections 26100 through 26106 of the California Business and Professions Code. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017).

5.28.200 Distribution and transportation of cannabis.

A. Cannabis and cannabis products shall be transported only between permitted cannabis facilities. The transportation of cannabis and cannabis products shall only be conducted by a person or entity holding a state-issued distribution license.

B. Notwithstanding subsection A of this section and sections 5.28.170 and 5.28.180, a cannabis distribution facility may make a retail sale or delivery to a customer who does not reside in the city, who does not have a residential or business address in the city, and where the transfer or delivery of cannabis or cannabis product is not made to an address or location within the city without holding a dispensary regulatory permit issued under this chapter. Such facility shall, however, hold a state-issued retail or other license as required by state law. A distribution facility making such retail sale and/or delivery to a customer shall not be open to the public; shall not provide, make, or offer to provide or make any on-site sale, distribution, or delivery to a customer; shall not have any on-site public display of cannabis or cannabis products; shall not make any retail sale or delivery of cannabis or cannabis products to a customer who resides in the city or who has a residential or business address in the city; and shall make no transfer or delivery to a customer of any cannabis or cannabis product to an address or location within the city.

C. A cannabis distribution facility making a retail sale or delivery to a customer as allowed pursuant to subsection B of this section shall be subject to the provisions of sections 5.28.170 and 5.28.180 as related to such retail sale or delivery to the extent such provisions are not inconsistent with the provisions of this section.

D. A cannabis distributor requires a regulatory permit for each physical location in the city where the distributor conducts business. A distributor providing transportation between permitted cannabis facilities or delivery to customers shall have a regulatory permit for each location where transportation equipment, while not in transport, or any equipment that is not currently transporting cannabis or cannabis products, permanently resides. If the cannabis distributor is not required to hold a regulatory permit from the city because it does not have such a physical location in the city, it shall hold a distribution permit or license issued by another jurisdiction.

E. All cannabis cultivation and manufacturing facilities permitted under this chapter shall send all cannabis and cannabis products to a state-licensed distributor for quality assurance and inspection by the distributor and batch testing by a state-licensed testing laboratory prior to distribution to a dispensary or the retail sale and delivery to a customer by a distributor as may be allowed under subsection B of this section.

F. A cannabis distributor shall comply with the electronic shipping manifest, quality assurance and inspection, and other requirements and procedures set forth in California Business and Professions Code Sections 26050 through 26059, "Licensing," Sections 26070 through 26070.5, "Retailers and Distributors," Section 26080, "Distribution and Transport," and Section 26110, "Quality Assurance, Inspection, and Testing," and other applicable state law and regulations.

G. A cannabis cultivation or manufacturing facility is not required to sell cannabis or cannabis products to a distributor and may directly contract for sale with a cannabis licensee authorized to sell cannabis and cannabis products to purchasers. The distributor performing services pursuant hereto may collect a fee from the licensee for the services provided, including, but not limited to, costs incurred for laboratory testing as well as applicable state or local taxes and fees. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017).

5.28.210 Packaging of cannabis.

A. Prior to delivery or sale at a cannabis dispensary or other authorized retailer, cannabis and cannabis products shall be packaged and labeled as required by Sections 26120 and 26121 of the California Business and Professions Code and applicable requirements and regulations issued by the state pursuant thereto.

B. If edible cannabis products are present on site or offered for distribution or sale at a cannabis dispensary facility, the cannabis dispensary facility shall first secure any approval from the Monterey County health department required for handling food products.

C. Edible products distributed or sold by any cannabis facility shall not be produced, manufactured, stored, or packaged in private homes.

D. All edible cannabis products shall be individually wrapped at the original point of preparation. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.190).

5.28.220 Cannabis facility operations.

A. Cannabis dispensary or retail facilities may only be open to customers between the hours of nine o’clock (9:00) A.M. and ten o’clock (10:00) P.M. with all in-store sales transactions finished by ten o’clock (10:00) P.M. and may operate as many as seven (7) days per week. Cannabis cultivation, manufacturing, distribution, and dispensary facilities shall not otherwise be open to the public.

B. The sale, dispensing, or consumption of alcoholic beverages on or about the cannabis facility or in the parking area for the facility is prohibited.

C. Cannabis may not be inhaled, smoked, eaten, ingested, vaped, or otherwise used or consumed on the premises or in the parking areas of the premises.

D. The loitering by persons outside the facility, either on the premises or within one hundred feet (100') of the premises, is prohibited.

E. Customers purchasing or otherwise receiving medicinal cannabis or medicinal cannabis products from a dispensary whose regulatory permit is restricted, in whole or in part, to medicinal cannabis and medicinal cannabis products shall sign an agreement with the facility that states that the person purchasing or otherwise receiving medicinal cannabis or medicinal cannabis products shall not sell, transfer, or otherwise distribute medicinal cannabis or medicinal cannabis products to any person other than a qualified patient, primary caregiver, or other individual or entity authorized to purchase, receive, or possess medicinal cannabis or medicinal cannabis products, and shall not use medicinal cannabis or medicinal cannabis products for other than medicinal purposes.

F. A dispensary shall not sell, transfer, or otherwise distribute cannabis to any person violating any provision of this chapter.

G. A copy of the regulatory permit issued by the city and any licenses or certifications issued by the state of California, and any conditions thereof, shall be posted on the premises in a prominent place, readily viewable by any member of the general public.

H. Consistent with the "Memorandum for All United States Attorneys" issued by the U.S. Department of Justice, from James M. Cole, Deputy Attorney General (known as the "Cole Memo"), the cannabis facility shall take all necessary and reasonable steps to prevent:

1. The distribution of cannabis to minors;

2. Revenue from the sale or distribution of cannabis from going to criminal enterprises, gangs and cartels;

3. The diversion of cannabis from California to any other state;

4. State-authorized cannabis activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;

5. Violence and the use of firearms in the cultivation, manufacture, and distribution of cannabis;

6. Drugged driving and the exacerbation of other adverse public health consequences associated with cannabis use;

7. Growing of cannabis on public lands and the attendant public safety and environmental dangers posed by cannabis production on public lands; and

8. Preventing cannabis possession or use on federal property.

Any violation of this provision may result in the immediate suspension of any permit authorized under this chapter and, pending investigation and a hearing, may result in revocation of the permit at the election of the city manager or designee. (Ord. 558 §2, 2022; Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.200).

5.28.230 Public health and safety.

A. Each cannabis facility shall operate in a manner such that the cultivation, manufacture, testing, distribution, dispensing, delivery, or transporting of cannabis or cannabis products does not adversely affect the health or safety of nearby properties through creation of mold, mildew, dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts.

B. The cultivation, manufacture, testing, distribution, dispensing, delivery, and transporting of cannabis or cannabis products shall not create hazards due to the use or storage of materials, processes, products, chemicals, fertilizers, or wastes.

C. The interior and exterior of the cannabis facility, including driveways, sidewalks, parking strips, fire access roads and streets on or adjacent to the premises, shall be kept in a clean and safe condition.

D. Exterior lighting on the premises and location shall ensure the safety of the public and the members and employees of the facility while not disturbing surrounding residential or commercial areas. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.210).

5.28.240 Records.

A. Cannabis facilities shall maintain accurate records of commercial cannabis activity and an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products throughout the distribution chain until purchase by or distribution to a customer. The records management and inventory control and reporting systems shall comply with the records management requirements of Sections 26160 through 26162.5 of the California Business and Professions Code and the track and trace program requirements of Sections 26067 through 26069.9 of the California Business and Professions Code, and regulations issued pursuant thereto.

B. Cannabis facilities shall have an electronic point-of-sale system that produces historical transactional data for review by the city manager or designee for compliance and auditing purposes.

C. Each cannabis facility shall maintain at the premises all records and documents required by applicable state law or regulation. Each cannabis facility shall also maintain at the premises the following information and records:

1. The name, address, and telephone number(s) of the owner, landlord and/or lessee of the location;

2. A current and up-to-date list of the names, addresses, and employment start dates of all employees of each cannabis facility;

3. For each dispensary for which the sale of cannabis and cannabis products is restricted, in whole or in part, by its regulatory permit to medicinal cannabis and medicinal cannabis products, the following information concerning each customer to whom medicinal cannabis is dispensed:

a. Name, address, telephone number, and a confidential member number unique to that individual which is used solely for the log identified in subsection C9 of this section;

b. A copy of a valid government-issued photo identification card or license;

c. A copy of the qualified patient’s identification card or the attending physician’s recommendation for the patient;

d. The name, address, and telephone number of each primary caregiver to whom medicinal cannabis is dispensed, along with a copy of the written documentation provided by each qualified patient designating the caregiver as his or her primary caregiver;

e. The name, business address, and telephone number of each attending physician who provided a physician’s recommendation to any qualified patient to whom medicinal cannabis is dispensed;

f. The records of all qualified patients with a valid identification card and primary caregivers with a valid identification card may be maintained by the dispensary using only the identification card number issued by the state pursuant to California Health and Safety Code Section 11362.7 et seq., in lieu of the information required by subsections C3a through e of this section;

4. Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by any dispensary, or received by the city through its audit, inspection, and compliance enforcement activities authorized pursuant to this chapter, including any such information contained in a physician’s recommendation, is confidential and shall not be disclosed pursuant to the California Public Records Act, California Government Code Sections 6250 through 6276.48, except as necessary for authorized employees of the city to perform official duties pursuant to this chapter or as otherwise required by law; and such information shall be maintained in accordance with California Health and Safety Code Section 123100 et seq. and California Civil Code Sections 56 through 56.37;

5. Up-to-date information for all savings accounts, checking accounts, investment accounts and trusts associated with the operation of the cannabis facility;

6. Complete and up-to-date records regarding the amount of cannabis cultivated, produced, manufactured, harvested, stored, distributed, delivered, packaged, or sold at each cannabis facility;

7. Until such time as state regulations are implemented under the track and trace program required by California Business and Professions Code Sections 26067 and 26068, complete and up-to-date records regarding cannabis transfers throughout the distribution chain from cultivation, to manufacturing, to testing, to distribution, and to its dispensing location, including the date and time of the transfer; the name and address of the cultivation and manufacturing facility, the name and address of the testing facility, and the name and address of the supplier or distributor if different from the cultivation or manufacturing facility; the amount, form, type, batch and lot number of cannabis transferred; the time of departure from the cultivation, manufacturing, testing, distribution, or transportation facility; the time of arrival at the distribution, testing, or dispensing location; the names of the employees transporting the product; and the name of the employee who received the product at the distribution, transportation, or dispensing location;

8. All receipts of the cannabis facility, including but not limited to all sale and revenue receipts and all expenditures incurred by the cannabis facility for the cultivation, manufacture, distribution, testing, dispensing, transportation, delivery, and sale of cannabis;

9. A copy of the annual audit reports required pursuant to section 5.28.250;

10. Proof of completed registration with the city manager in conformance with this chapter;

11. Records demonstrating compliance with local, state, and federal rules and regulations regarding reporting and taxation of income received; and

12. All cannabis facilities shall perform an inventory on the first business day of each month and shall record the total quantity of each form of cannabis on the premises.

D. All records required by this section shall be maintained by the cannabis facility for a minimum period of seven (7) years and shall be made available to the city manager and any city official charged with enforcing the provisions of this chapter upon request. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.220).

5.28.250 Audit.

No later than February 15th of every year each cannabis facility shall file with the city manager an audit of its financial operations for the previous calendar year, completed and certified by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. The audit shall include but not be limited to a discussion, analysis, and verification of each of the records required to be maintained pursuant to this chapter. The information contained in the audit shall be made available to the city manager in standard electronic format as designated by the city manager. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.230).

5.28.260 Community relations.

A. Each cannabis facility shall provide the city manager or designee with the name, telephone number, and e-mail address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the cannabis facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis facility. Each cannabis facility shall also provide the above information to all businesses and residences located within one hundred feet (100') of the cannabis facility.

B. During the first year of operation of a cannabis facility authorized under this chapter, the owner, manager, and community relations representative from each such cannabis facility shall attend a monthly meeting with the city manager and/or designee to discuss costs, benefits, and other community issues arising as a result of implementation of the cannabis regulatory permit program authorized by this chapter. After the first year of operation, the owner, manager, and community relations representative from each such cannabis facility shall meet with the city manager and/or designee when and as requested by the city manager or designee. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.240).

5.28.270 Compliance.

A. All cannabis facilities shall pay any applicable sales, use, business or other tax, and all license, registration, or other fees pursuant to federal, state, and local law.

B. All cannabis facilities shall comply with the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) of 2017, any subsequently enacted state law or regulatory, licensing, or certification requirement, all applicable provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit.

C. Nothing in this chapter shall be construed as authorizing any actions which violate state or local law with regard to the cultivation, transportation, manufacture, distribution, testing, provision, sale, transfer, disposition, or delivery of cannabis or cannabis products. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.250).

5.28.280 Inspections and enforcement.

A. The city manager, police chief, or their designees shall have the right to enter all cannabis facilities from time to time unannounced during the facility’s hours of operation for the purpose of making reasonable inspections to observe and enforce compliance with this chapter, to inspect and copy records required to be maintained under this chapter, or to inspect, view, and copy recordings made by security cameras, all without requirement for a search warrant, subpoena, or court order.

B. Nothing in this chapter requires the disclosure of any private medical record or confidential information contained in such medical record.

C. Operation of a cannabis facility in noncompliance with any conditions of approval or the provisions of this chapter shall constitute a violation of this municipal code and shall be enforced pursuant to the provisions of this code.

D. The city manager or designee may summarily suspend or revoke a cannabis regulatory permit, or disqualify an applicant from the registration process, or elect not to renew a regulatory permit if any of the following, singularly or in combination, occur:

1. The city manager or designee determines that the cannabis facility has failed to comply with any requirement of this chapter or any condition of approval or a circumstance or situation has been created that would have permitted the city manager or designee to deny the regulatory permit under section 5.28.070 or elect not to renew or revoke the regulatory permit under section 5.28.120;

2. The cannabis facility has conducted itself or is being conducted in a manner that creates or results in a public nuisance;

3. The cannabis facility ceased operations for more than ninety (90) calendar days, including during change of ownership proceedings;

4. The operator under whose name the regulatory permit is issued is changed without the new operator applying for and securing a regulatory permit under this chapter;

5. The cannabis facility relocates to a different location or premises; or

6. The cannabis facility fails to allow inspection and/or copying of the security recordings, the activity logs and records required under this chapter or the premises by authorized city officials. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.260).

5.28.290 Appeals.

Any decision regarding or pertaining to the regulatory permit process set forth in this chapter, or any action taken by the city manager or designee pursuant hereto, may be appealed to the city council. Such appeal shall be taken by filing with the city clerk, within ten (10) days after notice of the action or decision complained of has been issued, a written statement setting forth the grounds for the appeal. The city clerk shall transmit the written statement to the city council and at its next regular meeting the council shall set a time and place for a hearing on the appeal. Notice of the time and place of such hearing shall be mailed to the appellant. The decision of the city council on such appeal shall be final and binding on all parties concerned. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.270).

5.28.300 Violations.

A. Any violation of any of the provisions of this chapter is unlawful and a public nuisance.

B. Any violation of any of the provisions of this chapter shall constitute a misdemeanor violation and upon conviction thereof any violation shall be punishable by a fine not to exceed one thousand dollars ($1,000.00), or by imprisonment in the county jail for a period of not more than six (6) months, or by both such fine and imprisonment.

C. In lieu of issuing a misdemeanor citation, the city may issue an administrative citation, and/or assess an administrative fine of up to one thousand dollars ($1,000.00) for each violation of this chapter.

D. A separate offense occurs for each day any violation of this chapter is continued and/or maintained.

E. The remedies provided herein are not to be construed as exclusive remedies, and in the event of violation, the city may pursue any proceedings or remedies otherwise provided by law. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.280).

5.28.310 Implementation procedures.

A. The city manager or designee shall develop written regulations governing the implementation of the cannabis facility regulatory permit process authorized by this chapter. Such written regulations shall be approved by the city council before they shall become effective. The city council may impose such conditions of approval as it deems appropriate.

B. Regulations for dispensary, cultivation, manufacturing, testing, or distribution permits may be developed and approved separately or jointly. The city council may approve regulations for one or several types of permits and the approval of regulations for each type of permit shall operate independently of and not be dependent on the approval of regulations for any other type of permit authorized by this chapter.

C. Applications for a regulatory permit authorized by this chapter shall not be accepted by the city manager or designee, nor a regulatory permit issued, until the written implementing regulations required under this section have been approved by the city council for the type of cannabis facility permit for which application is sought. (Ord. 530 §2(part), 2018: Ord. 529 §2(part), 2017: Ord. 526 §2(part), 2017: Ord. 515 §2(part), 2016. Formerly 5.28.290).