4-34
CANNABIS
4-34.1 Purpose:
a. The purpose of this section is to regulate commercial cannabis activity in the city of Lynwood, as defined in section 26001 of the California Business and Professions Code, to the extent authorized by state law and in a manner designed to minimize negative impact on the city, and to promote the health, safety, morals, and general welfare of residents and businesses within the city.
b. This section is further adopted, established, and amended pursuant to the specific authority granted to the city of Lynwood in section 7 of article XI of the California Constitution and division 10 of the California Business and Professions Code, commencing with section 26000. These regulations shall govern commercial cannabis activity that occurs within the jurisdiction of the city. (Ord. #1688; Ord. #1707; Ord. #1751, §5)
4-34.2 Definitions:
Terms not defined herein shall have the same meanings set forth in the Medical and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) and any regulations promulgated pursuant thereto. In addition, the following terms shall be defined as follows:
a. Applicant shall have the same meaning as in Section 26001(c) of the California Business and Professions Code.
b. Cannabis shall have the same meaning as in Section 26001(f) of the California Business and Professions Code.
c. City means the city of Lynwood, California.
d. City manager shall mean the city manager of the city or a duly authorized designee.
e. Code means the Lynwood Municipal Code.
f. Commercial cannabis shall include medical as well as adult use cannabis.
g. Commercial cannabis activity shall have the same meaning as in Section 26001(k) of the California Business and Professions Code.
h. Cultivation site shall have the same meaning as in Section 26001(m) of the California Business and Professions Code.
i. Delivery shall have the same meaning as in Section 26001(p) of the Business and Professions Code.
j. Distribution shall have the same meaning as in Section 26001(r) of the Business and Professions Code.
k. Enclosed locked structure means a structure that: (1) does not allow for the visibility of the interior from the outside; (2) is secured with a lock; (3) is completely surrounded on all sides by a wall; and (4) is roofed. Enclosed locked structures may include accessory buildings. All enclosed locked structures shall comply with the city building code, city fire code, and all other applicable laws.
l. Good cause for purposes of refusing or denying an initial license under this chapter, for revoking a permit, or for refusing or denying a permit renewal or reinstatement, means:
1. The applicant has not obtained approval by the city council of a development agreement setting forth the general terms for the operation of a business under this chapter or a licensee breaches the terms of an applicable development agreement;
2. The applicant or licensee has violated any of the terms, conditions or provisions of this chapter, of state law, of any regulations and rules promulgated pursuant to state law, any applicable local rules and regulations, or any special terms or conditions placed upon its state license, local license or permit;
3. The licensed premises have been operated in a manner that adversely affects the public health, safety or welfare or the safety of the immediate neighborhood in which the establishment is located;
4. The applicant or licensee has knowingly made false statements, misrepresentations or material omissions on an application form, renewal form, or any other document submitted to the city;
5. The applicant’s or licensee’s criminal history does not indicate that the applicant or licensee is of good moral character; or the applicant or licensee 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 local licensing authority has issued a local license to the applicant or licensee, the city shall not consider any criminal history of the applicant or licensee that was disclosed to or discovered by the local licensing authority prior to the issuance of the local license and is confirmed by the applicant. For any criminal history that was not disclosed to or discovered by the local licensing authority prior to the issuance of the local license, or that arose after the issuance of the local license, the city shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant or licensee, and shall evaluate the suitability of the applicant or licensee to be issued a 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 shall consider the factors as set forth in Section 26057(b)(5) of the California Business and Professions Code;
6. The applicant or licensee is employing or allowing to volunteer any person whose criminal history indicates that person is not of good moral character;
7. The applicant or licensee fails to allow inspection of the security recordings, activity logs, or business records of the licensed premises by city officials;
8. An owner of the applicant or licensee is a licensed physician providing written documentation to qualified patients for medical cannabis; or
9. The applicant or licensee has had a license application denied, or a license revoked or suspended, by the state of California.
m. Good moral character means having a personal history that demonstrates the propensity to serve the public in the licensed area in a manner that reflects openness, honesty, fairness, and respect for the rights of others and for the law. In determining good moral character, the following standards shall apply:
1. A judgment of guilt in a criminal prosecution or a judgment in a civil action shall not be used, in and of itself, as proof of an individual’s lack of good moral character. Such judgment may be used as evidence in the determination, and when so used the individual shall be notified and shall be permitted to rebut the evidence by showing that at the current time he or she has the ability to, and is likely to, serve the public in a fair, honest and open manner, that he or she is rehabilitated, or that the substance of the former offense is not substantially related to the occupation or profession for which he or she seeks to be licensed.
2. Notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions 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 local license, except that any of the following convictions shall be deemed substantially related and may be the sole grounds for denying a local license or permit:
(a) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling any controlled substance; or
(b) A felony conviction for selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or
(c) A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the California Health and Safety Code.
(d) Conviction for any controlled substance felony subsequent to issuance of a permit shall be grounds for revocation of a permit or denial of the renewal of a permit.
n. Licensed premises means the premises, consisting of a single or immediately adjoining parcel(s) as identified by valid street address and assessor parcel number, specified in an application for a permit under this chapter, which are owned or in possession of the applicant or licensee and within which the applicant or licensee is applying for authorization to cultivate, manufacture, distribute, test, or is applying for multiple permitted uses within the same premises, in accordance with the provisions of this chapter, the MAUCRSA, any development agreement approved by city council, and any rules adopted pursuant thereto.
o. Licensee means a person who has been issued a commercial cannabis business permit pursuant to this chapter for one licensed premises.
p. Limited access area means a building, room or other area that is part of the licensed premises where medical or adult use cannabis is grown, cultivated, stored, weighed, displayed, packaged, or sold to other medical or adult use cannabis businesses, under control of the licensee, with limited access to only authorized personnel.
q. Local license means a business license granted by the city, pursuant to this chapter.
r. Manufacturing site shall mean any building, structure, premises, or location that is used to manufacture cannabis or cannabis related products.
s. Medical cannabis shall have the same meaning as the term “medicinal cannabis,” as defined in Section 26001(ai) of the California Business and Professions Code.
t. Commercial cannabis business means any person engaged in commercial cannabis activity but excludes cannabis retailers permitted and operating under section 4-35.
u. Medical and Adult Use Cannabis Regulation and Safety Act or MAUCRSA means Division 10 of the California Business and Professions Code.
v. Outdoors means any location within the city that is not within an enclosed locked structure.
w. Owner means, pursuant to Section 26001(al) of the California Business and Professions Code, an owner of a commercial cannabis business, including all persons having an ownership interest other than a security interest, lien, or encumbrance on property that will be used by the commercial cannabis business.
1. If an owner is an entity, owner includes within the entity each person participating in the direction, control, or management of, or having a financial interest in, the commercial cannabis business.
2. If an owner is a publicly traded company, owner also means the chief executive officer and any person with an aggregate ownership interest of five percent (5%) or more in such company.
x. Person has the same meaning as that term is defined in Section 26001(an) of the California Business and Professions Code.
y. Permit means authorization to operate a commercial cannabis business pursuant to this chapter, state law, and upon the issuance of an occupancy permit and business license by the city.
z. Physician shall mean an individual who possesses a license in good standing to practice medicine or osteopathy from the state of California.
aa. State law(s) shall mean and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act); the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; MAUCRSA, and all other applicable laws of the state of California.
bb. State license has the same meaning as that term is defined in Sections 26001(a), (c), (y), and (ae) of the California Business and Professions Code.
cc. State licensing authority shall mean the Bureau of Cannabis Control within the Department of Consumer Affairs, the Department of Public Health, or any other state agency responsible for the issuance, renewal, or reinstatement of a local license issued pursuant to Division 10 of the California Business and Professions Code or any state agency authorized to take disciplinary action against such local license.
dd. Written documentation shall have the meaning set forth in Section 11362.7(i) of the California Health and Safety Code.
ee. Youth center means any facility that is operated by a public agency or nonprofit entity with the sole purpose of providing educational and/or recreational services to minors. (Ord. #1688; Ord. #1707; Ord. #1751, §§6, 7, 8)
4-34.3 Relationship To Other Laws:
Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in Division 10 of the California Business and Professions Code, starting with Section 26000, as such division may be amended in the future. In the event of any conflict between the provisions of this chapter and the provisions of Division 10 of the Business and Professions Code or any other applicable state law or the Lynwood Municipal Code, the more restrictive provision shall govern. (Ord. #1688; Ord. #1707)
4-34.4 Permitted Use:
a. Commercial cannabis businesses shall only be permitted to operate in the city following application, investigation, verification, approval and issuance of a development agreement approved by the city council and a business license issued by the city in accordance with the criteria and procedures set forth in this chapter and in compliance with the Lynwood Municipal Code. No land use entitlement, permit (including building permit) approval, site plan, certificate of occupancy, zoning clearance, or other land use authorization for a commercial cannabis business shall be granted or permitted unless it complies with the provisions of this chapter and the applicable building standards and the Lynwood Municipal Code. If there is a conflict between the requirements of another chapter and this chapter, the requirements of this section shall prevail.
b. All persons who operate or who are attempting to operate a commercial cannabis business in any form shall do so only in strict compliance with the terms, conditions, limitations and restrictions of the MAUCRSA, the provisions of this section, and all other applicable state and local laws and regulations.
c. The city manager is authorized to make policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures and the administration and procedures to be used and followed in the application and hearing process. (Ord. #1688; Ord. #1707; Ord. #1751, §9)
4-34.5 Development Agreement:
Prior to operating in the city and as a condition of issuance of a permit, the applicant shall enter into a development agreement with the city setting forth the terms and conditions under which the facility will operate that is 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 upon, approval of architectural plans (including site plan, floor plan, and elevation, to conform with manufacturing uses under the Lynwood Municipal Code), and such other terms and conditions that will protect and promote the public health, safety, and welfare of all persons in the city. (Ord. #1688; Ord. #1707)
4-34.6 Permitted Zones – Distance And Other Conditions For Approval:
Licensed premises of any license classification type, as specified in Business and Professions Code Section 26050, and in this chapter, shall be allowed, maintained, or operated in the city. If there is a conflict between the requirements of this chapter and any other chapter, the requirements of this chapter shall prevail.
a. Manufacturing Site.
l. No manufacturing site shall be located within six hundred feet (600') of a school, day-care center, or youth center, within fifty feet (50') of a residential zone, in conformance with state law.
2. Subject to the distance and other requirements of this chapter and the code, a manufacturing site may only be located on a property within the M manufacturing zone, and following the application for and granting of a development agreement by the city council and a business permit in accordance with this chapter. The proposed use will comply with the minimum requirements set forth in this chapter for distance separations between manufacturing sites and other specific land uses.
3. All manufacturing of commercial cannabis shall occur in an enclosed locked structure. All manufacturing of cannabis outdoors within the city is prohibited.
4. Manufacturing sites shall not exceed the square footage authorized pursuant to the controlling development agreement.
5. From a public right-of-way, there should be no exterior evidence of the manufacture of commercial cannabis of any type or kind, except for any signage authorized by this code.
6. All manufacturing sites shall comply with the city’s lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.
7. All windows on the licensed premises of the manufacturing site shall be appropriately secured and all commercial cannabis securely stored.
8. A manufacturing site, all operations conducted therein, and all equipment used must be in compliance with all applicable state and local laws, including all building, electrical, and fire codes.
9. If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in CFC Section 202, are to be used in the processing of commercial cannabis, then the provisions of CFC Section 407 shall be applicable where hazardous materials subject to permits under CFC Section 50 (Hazardous Materials) are located on the licensed premises or where required by the fire department official.
10. Storage, use and handling of compressed gases in compressed gas containers, cylinders, tanks and systems shall comply with CFC Chapter 53. Partially full compressed gas containers, cylinders or tanks containing residual gases shall be considered as full for the purposes of the controls required. Compressed gases classified as hazardous materials shall also comply with CFC Chapter 50 for general requirements and CFC Chapter 53 addressing specific hazards, including CFC Chapter 58 (Flammable Gases), CFC Chapter 60 (Highly Toxic and Toxic Materials), CFC Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids) and CFC Chapter 64 (Pyrophoric Materials). Prevention, control and mitigation of dangerous conditions related to storage, use, dispensing, mixing and handling of flammable and combustible liquids shall be in accordance with CFC Chapters 50 and 57.
11. Manufacturing sites are a Group F-1 (Factory Industrial Moderate-Hazard) occupancy under the fire code. All new construction is required to be fire sprinkled per the fire code. For manufacturing sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-l occupancy where one of the following conditions exists:
(a) A Group F-1 fire area exceeds twelve thousand (12,000) square feet.
(b) A Group F-1 fire area is located more than three (3) stories above grade plane.
(c) The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds twenty-four thousand (24,000) square feet.
b. Cultivation Sites.
1. No cultivation site shall be located within six hundred feet (600') of a school, day-care center, park, or youth center, or within fifty feet (50') of a residential zone, in conformance with state law.
2. Subject to the distance and other requirements of this chapter and the code, a cultivation site may only be located on a property within the M manufacturing zone, and following the application for and granting of a development agreement by the city council and a business permit in accordance with this chapter. The proposed use will comply with the minimum requirements set forth in this chapter for distance separations between manufacturing sites and other specific land uses.
3. All cultivation of commercial cannabis shall occur in an enclosed locked structure. All cultivation of cannabis outdoors within the city is prohibited.
4. Cultivation sites shall not exceed the square footage authorized pursuant to the permit.
5. From a public right-of-way, there should be no exterior evidence of the cultivation of commercial cannabis except for any signage authorized by this chapter.
6. All cultivation sites shall comply with the city’s lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.
7. All windows on the licensed premises of the cultivation sites shall be appropriately secured and all commercial cannabis securely stored.
8. Areas where commercial cannabis is cultivated are wet locations, and the electrical system in such areas must comply with Title 8 of this code, Article 300.6(D) of the National Electric Code, city and California building codes, fire codes, electrical codes and all other applicable laws.
9. Cultivation sites are a Group F-1 (Factory Industrial Moderate-Hazard) occupancy under the fire code. All new construction is required to be fire sprinkled per the fire code. For cultivation sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists:
(a) A Group F-1 fire area exceeds twelve thousand (12,000) square feet.
(b) A Group F-1 fire area is located more than three (3) stories above grade plane.
(c) The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds twenty-four thousand (24,000) square feet.
c. In addition to a manufacturing or cultivation permit, a commercial cannabis business applicant may apply for another use as permitted by MAUCRSA, a development agreement approved by city council, and any rules adopted pursuant thereto, as long as the requested use does not violate Ordinance No. 1632, Section 25-200-1, and Chapter 25 Appendix A of the Lynwood Zoning Code and the limitations in this section.
d. Distribution of Cannabis. No distributor company will carry or move cannabis within the city without complying with state law.
e. Nonconforming Use. Any commercial cannabis business established or operating in the city in violation of this section or the ban established by Ordinance No. 1632, section 25-200-1, and chapter 25 appendix A of the Lynwood Zoning Code shall not be considered a lawful or permitted nonconforming use, and no such commercial cannabis business shall be eligible for issuance of a commercial cannabis business permit. Further, any such unlawfully established commercial cannabis business shall constitute a public nuisance subject to abatement by the city, pursuant to section 3-13.
f. Distances. All distances specified in this section shall be measured in the following manner:
1. For schools, day-care centers, parks, or youth centers, the distance shall be measured in a straight line from the subject property line to the closest property line of the lot on which the cannabis business is to be located without regard to intervening structures.
2. From residential zones, the distance shall be measured to the nearest point of the parcel or property in a residential zone to the closest property line of the lot on which the cannabis business is to be located without regard to intervening structures.
g. Delivery. If it is permitted under state law, a person may operate a cannabis non-storefront delivery service if the person obtains a permit from the city for such activity, and if the person also has a manufacturing permit from the city. The activity must be conducted as a cannabis delivery-only service, consistent with state law and regulations, and it can only be conducted from a licensed premises in the city of Lynwood. No in-person sales shall be permitted at any licensed premises, and no licensed premises shall be open to the public. A permit to conduct a cannabis delivery service will be subject to reasonable conditions, including but not limited to the types of vehicles that may be used for deliveries, the qualifications of drivers, and limits on the amount of cannabis products that an individual may purchase. This section creates no vested right to engage in any such activity or business. This activity shall not be considered a dispensary. This is intended as an exceptional measure, notwithstanding any other provision of the Lynwood Municipal Code, to ensure the city’s residents have safe and reliable access to cannabis products. (Ord. #1688; Ord. #1700, §1; Ord. #1707; Ord. #1751 §10)
4-34.7 No Transfer Or Change In Ownership Or Location:
a. Any owner of a commercial cannabis business who obtains a permit under this chapter may not sell, transfer, pledge, assign, grant an option, or otherwise dispose of his or her ownership interest in the commercial cannabis business covered by any permit issued under this chapter.
b. Persons permitted pursuant to the provisions of this chapter, or those making application for such permits, must demonstrate proof of lawful possession of the location. Evidence of lawful possession consists of properly executed deeds of trust, leases, or other written documents.
c. The location shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful possession. No licensee is authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the city council regardless of any possessory interest or right to possession to such additional space. No licensee shall add additional contiguous units or areas, thereby altering the initially approved premises, without filing an application to modify the location on forms prepared by the city manager, including any applicable processing fee.
d. Subletting Not Authorized. No licensee is authorized to sublet any portion of any licensed premises for any purpose, unless all necessary forms and application to modify the existing location to accomplish any subletting have been approved by the city council. (Ord. #1688; Ord. #1707)
4-34.8 Changing, Altering, Or Modifying Location:
a. Application Required To Alter or Modify Licensed Premises. After issuance of a permit, the licensee shall not make any physical change, alteration, or modification of the licensed premises that materially or substantially alters the location, production estimates, or the usage of the location from the plans originally approved with the development agreement, without the prior written approval of the city council or its designee. The licensee whose premises are to be materially or substantially changed is responsible for filing an application for approval on current forms provided by the licensed premises.
b. What Constitutes A Material Change. Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following:
1. Any increase or decrease in the total physical size or capacity of the location;
2. The sealing off, creation of or relocation of a common entryway, doorway, passage or other such means of public ingress and/or egress, when such common entryway, doorway or passage alters or changes limited access areas, such as the cultivation, harvesting, manufacturing, or sale of commercial cannabis or cannabis-infused product within the licensed premises;
3. The installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage to enhance cultivation activities.
c. Application. The city council or its designee may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the licensee, and payment of any applicable fee. The licensee must submit all information requested by the city council or its designee including, but not limited to, documents that verify the following:
1. The licensee will continue to have exclusive possession of the premises, as changed, by ownership, lease, or rental agreement, and sole control of all production; and
2. The proposed change conforms to any and all city restrictions related to the time, manner, and place of regulation of commercial cannabis businesses. (Ord. #1688; Ord. #1707; Ord. #1751, §11)
4-34.9 Grounds For Denial Of Permit – Additional Conditions Imposed:
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’s business entity, if applicable, is not properly organized in strict compliance pursuant to the applicable law, rules and regulations;
3. The applicant fails to meet the requirements of this chapter or any regulation adopted pursuant to this chapter;
4. The applicant’s 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 permit would be contrary to the public health, welfare, safety, or morals;
5. The applicant, or any of its officers, directors, owners, managers, or employees, is under twenty-one (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 licensed premises, or any employee who participates in the cultivation, processing, manufacturing, distribution, delivery, or transporting of cannabis or who participates in the daily operations of the commercial cannabis facility, has been convicted of a violent felony, a felony or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude, or the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, with the exception of medical cannabis related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996;
7. The applicant, or any of its officers, directors, owners, or managers, is a licensed physician making patient recommendations for medical cannabis;
8. The applicant, or any of its officers, directors, owners, or managers, has been sanctioned by the city, the state of California, or any county for unregistered medical cannabis activities or has had a registration revoked under this chapter in the previous three (3) years;
9. The applicant did not pay to the city the required application and processing fees;
10. The applicant has had a license application denied, or a license revoked or suspended by the state of California;
11. Good cause exists to reject the application, as defined in this chapter;
12. Applicant’s application does not reflect the purpose of this chapter, to promote the health, safety, morals, and general welfare of residents and businesses within the city. (Ord. #1688; Ord. #1707)
4-34.10 Security:
a. General Security Requirements.
1. Security cameras shall be installed and maintained in good working condition, and used in an ongoing manner with at least two hundred forty (240) continuous hours of digitally recorded documentation in a format approved by the city manager. The cameras shall be in use twenty-four (24) hours per day, seven (7) days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, manufacturing or cultivation areas, all doors and windows, and any other areas as determined by the city manager.
2. The lease/business space shall be alarmed with a reliable, commercial alarm system that is operated and monitored by a security company or alarm business that is operating in full compliance with section 3-1.
3. Entrance to any storage areas shall be locked at all times, and under the control of licensee’s staff.
4. The business entrance(s) and all window areas shall be illuminated during evening hours. The applicant shall comply with the city’s lighting standards regarding fixture type, wattage, illumination levels, shielding, etc., and secure the necessary approvals and permits as needed.
5. All windows on the licensee’s building shall be appropriately secured and all product securely stored.
6. Each licensee shall implement a system to track the cultivation and manufacturing of cannabis in order to prevent the licensee from diverting or transporting cannabis to any location not authorized by state laws and any local law or regulation.
7. All waste and disposal containers shall be locked at all times and stored in a secure area, and under the control of licensee’s staff.
b. Security Alarm Systems — Minimum Requirements.
1. Each licensed premises shall have a security alarm system, installed by a licensed alarm company, on all perimeter entry points and perimeter windows.
2. Each licensed premises must ensure that its location is continuously monitored. Licensed premises may engage the services of an outside vendor to fulfill this requirement.
3. The licensed premises shall maintain up-to-date and current records and existing contracts on the premises that describe the location and operation of each security alarm system, a schematic of security zones, the name of the licensed alarm company, and the name of any vendor monitoring the premises.
4. Upon request, each licensed premises shall make available to the city manager or any state or local law enforcement agency, for a purpose authorized by this chapter or any state or local law enforcement purpose, all information related to security alarm systems, recordings, monitoring, and alarm activity.
c. Lock Standards – Minimum Requirement. At all points of ingress and egress, the licensee shall ensure the use of commercial-grade, nonresidential door locks.
d. Video Surveillance Requirements.
1. Prior to exercising the privileges of a permit under this chapter, an applicant must install fully operational video surveillance and camera recording system. The recording system must record in digital format and meet the requirements outlined in this section.
2. All video surveillance records and recordings must be stored in a secure area that is only accessible to the management staff of licensed premises.
3. Video surveillance records and recordings must be made available upon request to the city manager or any other state or local law enforcement agency for a purpose authorized by this chapter or for any other state or local law enforcement purpose.
4. Video surveillance records shall be held in confidence by all employees and representatives of the city manager, except that the city manager may provide such records and recordings to any other state or local law enforcement agency for a purpose authorized by this chapter or for any other state or local law enforcement purpose.
5. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve inches (12") wide and twelve inches (12") long, composed of letters not less than one inch (1") in height, stating “All Activities Monitored by Video Camera” or “These Premises Are Being Digitally Recorded” or otherwise advising all persons entering the licensed premises that a video surveillance and camera recording system is in operation at the MCCC and recording all activity as provided in this section.
6. The licensed premises should use video surveillance equipment and a camera system that can be accessed remotely by local law enforcement and the city, as specified in each development agreement.
e. Video Surveillance Equipment.
1. Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the recording requirements described in this rule, video monitors, digital archiving devices, and a color printer capable of delivering still photos.
2. All video surveillance systems must be equipped with a failure notification system that provides prompt notification to the licensed premises of any prolonged surveillance interruption and/or the complete failure of the surveillance system.
3. Licensed premises are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored areas.
4. All video surveillance equipment shall have sufficient battery backup to support a minimum of four (4) hours of recording in the event of a power outage.
f. Placement of Cameras and Required Camera Coverage.
1. Camera placement shall be capable of identifying activity occurring within twenty feet (20') of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the licensed premises.
2. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points.
3. The system shall be capable of recording all predetermined surveillance areas in any lighting conditions. If the licensed premises has a commercial cannabis cultivation area, a rotating schedule of lighted conditions and zero-illumination can occur as long as ingress and egress points to those areas remain constantly illuminated for recording purposes.
4. Areas where commercial cannabis is grown, tested, cured, manufactured, or stored shall have camera placement in the room facing the primary entry door at a height which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.
5. Cameras shall also be placed at each location where weighing, packaging, transport, preparation, or tagging activities occur.
6. At least one camera must be dedicated to record the access points to the secured surveillance recording area.
7. All outdoor cultivation areas must meet the same video surveillance requirements applicable to any other indoor limited access areas.
g. Location and Maintenance of Surveillance Equipment.
1. Surveillance recording equipment must be housed in a designated, locked and secured room or other enclosure with access limited to authorized employees, agents of the city manager, state or local law enforcement agencies for a purpose authorized by this chapter or for any other state or local law enforcement purpose, and service personnel or contractors.
2. Licensed premises must keep a current list of all authorized employees and service personnel who have access to the surveillance system and/or room on the licensed premises. Licensed premises must keep a surveillance equipment maintenance activity log on the licensed premises to record all service activity including the identity of the individual(s) performing the service, the service date and time and the reason for service to the surveillance system.
3. Off-site monitoring and video recording storage of the licensed premises or an independent third party is authorized as long as standards exercised at the remote location meet or exceed all standards for on-site monitoring.
4. Each licensed premises located in a common or shared building must have a separate surveillance room/area that is dedicated to that specific licensed premises. The facility that does not house the central surveillance room is required to have a review station, printer, and map of camera placement on the premises. All minimum requirements for equipment and security standards as set forth in this section apply to the review station.
h. Video Recording and Retention Requirements.
1. All camera views of all recorded areas must be continuously recorded twenty-four (24) hours a day.
2. All surveillance recordings must be kept for a minimum of thirty (30) days and be in a format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as legitimately captured video and guarantees that no alteration of the recorded image has taken place.
3. The surveillance system or equipment must have the capabilities to produce a color still photograph from any camera image, live or recorded, of the licensed premises.
4. The date and time must be embedded on all surveillance recordings without significantly obscuring the picture.
5. Time is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U.S. Naval Observatory at: http://www.time.gov/timezone.cgi?Mountain/d/-7/java.
6. After the thirty (30) day surveillance video retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to being discarded or disposed of for any other purpose. Surveillance video recordings may not be destroyed if the licensed premises knows or should have known of a pending criminal, civil, or administrative investigation or any other proceeding for which the recording may contain relevant information.
i. Other Records. All records applicable to the surveillance system and cannabis tracking system shall be maintained on the licensed premises. At a minimum, licensed premises shall maintain a map of the camera locations, direction of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list and operating instructions for the surveillance equipment. (Ord. #1688; Ord. #1707)
4-34.11 Fees And Charges:
a. Prior to operating in the city, the operator of each licensed premises shall timely and fully pay all fees associated with the establishment of that business. 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 an application is submitted;
2. Processing fee for the cost to the city of processing an application and reviewing, investigating and scoring each application in accordance with any evaluation system to determine eligibility for issuance of a 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 permit, and preparation and issuance of the permit as authorized by the city council, due and payable in full at the time the city issues a permit;
4. Amended registration fee for the cost to the city of reviewing amendments or changes to the registration form previously filed on behalf of the licensed premises; due and payable in full at the time amendments or changes to any permit form is submitted to the city;
5. Permit renewal fee for the cost to the city of processing an application to renew a permit; due and payable in full at the time application is made to renew a permit;
6. 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; and
7. Any fees set forth in the applicable development agreement. (Ord. #1688; Ord. #1707)
4-34.12 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 permit pursuant to this chapter or the operation of any commercial cannabis facility approved pursuant to this chapter.
b. As a condition of approval of a 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 commercial cannabis facility or the prosecution of the commercial cannabis facility or its owners, managers, directors, officers, employees, or its qualified patients or primary caregivers 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 additional 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. #1688; Ord. #1707)
4-34.13 Inspections:
a. The city manager, law enforcement, or their designees shall have the right to enter all licensed premises 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, and subject to appropriate fees as specified in the development agreement under the Lynwood Municipal Code.
b. Operation of a licensed premises in noncompliance with any conditions of approval or the provisions of this chapter shall constitute a violation of the code and shall be enforced pursuant to the provisions of this code.
c. The city manager or designee may summarily suspend or revoke a 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 commercial 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 this chapter or elect not to renew or revoke the permit under this chapter;
2. The licensed premises or applicant has conducted itself or is being conducted in a manner that creates or results in a public nuisance;
3. The licensed premises ceased operations for more than ninety (90) calendar days, including during change of ownership proceedings;
4. Ownership is changed without the new owners applying for and securing a new permit under this chapter;
5. The licensed premises relocates to a different location or premises; and
6. The licensed premises 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.
d. Abatement. The city shall initiate abatement proceedings as authorized by the code if necessary to correct any violation of this chapter, code, or state laws.
e. Violation Deemed Misdemeanor – Penalty. Any person violating any of the provisions of this chapter, or any applicable rule in this chapter or code, shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by the maximum penalties provided for in Section 19 of the Penal Code. (Ord. #1688; Ord. #1707)
4-34.14 Testing:
a. Testing Rules and Regulations. The city manager is authorized to formulate, adopt, and amend, from time to time, rules and regulations regarding the safety and potency of commercial cannabis distributed, dispensed, cultivated or manufactured at any licensed premises operating within the city. The purpose of such rules and regulations is to verify that any cannabis in any licensed premises is free of disallowed pesticides, fungicides, and microbiological organisms such as mold, bacteria, and fungus, and to verify the potency of such cannabis.
b. Testing Centers. The city manager is authorized on behalf of the city to contract with one or more independent testing laboratories to assist the city manager in the formulation of the rules and regulations required under this section and to perform periodic and random testing of cannabis at each licensed premises operating in the city.
c. Samples On Demand. Each licensed premises shall, upon request of the city manager, submit a sufficient quantity of cannabis to a recognized testing facility retained by the city manager to perform laboratory or chemical analysis of the subject cannabis. The testing facility shall maintain the testing results as part of its records. The city manager will notify the licensee of the results of the analysis. (Ord. #1688; Ord. #1707)
4-34.15 Appeals:
Any decision regarding or pertaining to the 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. #1688; Ord. #1707)
4-34.16 Statewide Regulation:
This chapter, and the provisions herein, shall be read consistently with any statewide regulation of medical and/or adult use cannabis/marijuana that is promulgated by the legislature or by voter approval in the future. In the event that any state law is passed pursuant to the decriminalization or legalization, for recreational use, of cannabis, this section shall govern the conduct of those businesses allowed to cultivate, manufacture, test, or distribute cannabis under such law. (Ord. #1688; Ord. #1707)
4-34.17 Interpretation:
The provisions of this chapter shall be read consistent with all the provisions of federal and state laws, this chapter, as well as this code. At no time shall a commercial cannabis business in compliance with state law and this code be deemed to be an unlawful business. (Ord. #1688; Ord. #1707)
4-34.18 Severability:
Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable. (Ord. #1688; Ord. #1707)
4-34.19 Effective Date:
The ordinance codified in this section shall take effect thirty (30) days after the date of its adoption. (Ord. #1707)
4-34.20 City Clerk Certification.
The city clerk shall certify as to the adoption of the ordinance codified in this section and cause it to be published or posted according to law. (Ord. #1707)