Chapter 5.10 LICENSING AND BUSINESS REGULATIONS FOR COMMERCIAL CANNABIS ACTIVITY

It is the purpose and intent of this chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") to accommodate the needs of medically ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same. It is also the purpose and intent of this chapter to provide access to adult-use cannabis for persons aged twenty-one and over as authorized by the Control, Regulate and Tax Adult Use of Marijuana Act ("AUMA" or "Proposition 64" approved by California voters in 2016), while imposing sensible regulations on the use of land to protect the city’s residents, neighborhoods, and businesses from disproportionately negative impacts. As such, it is the purpose and intent of this chapter to regulate the cultivation, processing, manufacturing, testing, sale, delivery, distribution and transportation of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the city of Marysville and to enforce rules and regulations consistent with state law. It is the further purpose and intent of this chapter to require all commercial cannabis operators to obtain and renew annually a permit to operate within the city of Marysville. Nothing in this chapter is intended to authorize the possession, use, or provision of cannabis for purposes that violate state law. The provisions of this chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the city, and are in addition to any permits, licenses and approval required under state, city, or other law. (Ord. 1419 § 1 (part), 2019).

5.10.010 Legal authority.

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (hereinafter "MAUCRSA"), any subsequent state legislation and/or regulations regarding same, the city of Marysville is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the state of California, or any of its departments or divisions, shall be the minimum standards applicable in the city of Marysville to all commercial cannabis activity. (Ord. 1419 § 1 (part), 2019).

5.10.020 All cultivation and commercial cannabis activities are prohibited unless specifically authorized by this chapter.

Except as specifically authorized in this chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation (other than as provided under Business and Professions Code Section 26090(e)) of cannabis or cannabis product is expressly prohibited in the city of Marysville. (Ord. 1419 § 1 (part), 2019).

5.10.030 Compliance with state and local laws.

It is the responsibility of the owners and operators of the commercial cannabis business to ensure that it is, always, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder. Nothing in this chapter shall be construed as authorizing any actions that violate state law or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the owners and the operators of the commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with all applicable state and local laws, including the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), and any subsequently enacted state law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the commercial cannabis business permit. Nothing in this chapter shall be construed as authorizing any actions that violate local or state law regarding the operation of a commercial cannabis business. (Ord. 1419 § 1 (part), 2019).

5.10.040 Definitions.

All definitions pertaining to cannabis regulation that appear in Business and Professions Code Section 26001, as codified by Senate Bill 94, the Medicinal and Adult Use Cannabis Regulation and Safety Act of 2017 (MAUCRSA), are hereby incorporated by reference. Definitions appearing in this chapter are either those that are not covered by state law, pre-date Proposition 64 and the MAUCRSA, or are outside the scope of Section 26001.

(a) "Cannabis review committee" is the entity evaluating business applications and is comprised of executive staff and individuals designated by the city manager.

(b) "Canopy" shall have the same meaning as that appearing in Title 3, Section 8000(f) of the California Code of Regulations.

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

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

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

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

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

(h) "Licensee" is the person or business entity that has obtained a valid commercial cannabis license from the Marysville police department.

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

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

(k) "Manufacturing site" means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid commercial cannabis business permit for manufacturing from the city of Marysville and a valid state license as required for manufacturing of cannabis products.

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

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

(n) "Operator" means the licensee who has obtained a valid commercial cannabis business license from the Marysville police department.

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

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

(q) "Permittee" is a person who has obtained a valid employee work permit from the Marysville police department, authorizing him or her to work in a commercial cannabis business.

(r) "Person with an identification card" shall have the meaning given that term by California Health and Safety Code Section 11362.7.

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

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

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

(v) "Topical cannabis" means a product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code.

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

(x) "Youth center" means any public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades where ten or more video games or game machines or devices are operated and where minors are legally permitted to conduct business, or similar amusement park facilities. It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or in city, county or state parks. This definition shall not include any private martial arts, yoga, ballet, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations. (Ord. 1419 § 1 (part), 2019).

5.10.050 Commercial cannabis license required.

It is unlawful for any person, for himself or herself, or for any other person, firm or entity, to engage in or carry on, or to maintain or conduct, or cause to be engaged in, carried on, maintained or conducted, any commercial cannabis activities without a license as required by this chapter. The license required shall be in addition to any general business license and conditional use permit required by the city. (Ord. 1419 § 1 (part), 2019).

5.10.051 Commercial cannabis business permit required to engage in commercial cannabis business.

(a) No person may engage in any commercial cannabis business or in any commercial cannabis activity within the city of Marysville including cultivation, manufacture, processing, laboratory testing, transporting, dispensing, distribution, or sale of cannabis or a cannabis product unless the person (1) has a valid commercial cannabis business permit from the city of Marysville; (2) has a valid state of California seller’s permit; and (3) is currently in compliance with all applicable state and local laws and regulations pertaining to the commercial cannabis business and the commercial cannabis activities, including the duty to obtain any required state licenses.

(b) No permit shall be issued pursuant to this chapter for outdoor commercial cannabis cultivation, which is prohibited. It is a violation of this chapter for any person or entity to engage in any outdoor commercial cannabis cultivation of any kind. (Ord. 1419 § 1 (part), 2019).

5.10.052 Application for commercial cannabis business license—In general.

Any application for a commercial cannabis license shall be made with the cannabis review committee and be on a form prescribed by the cannabis review committee. Any application for a license which is not otherwise exempt from license fees shall be accompanied by a nonrefundable fee in an amount established by resolution of the city council. A commercial cannabis business license is issued to a specific person or business entity for a specific location, the address of which shall be set forth in the license. Any commercial cannabis business license issued shall be valid for a period not to exceed one year from the date of issuance, unless it is suspended or revoked prior to that date pursuant to Section 5.10.130. (Ord. 1419 § 1 (part), 2019).

5.10.055 Registration required to own, operate or conduct business as a commercial cannabis operator.

It is unlawful for any person, firm or entity to engage in or carry on, maintain or conduct, or cause to be engaged in, carried on, maintained or conducted, any commercial cannabis business in the city without complying with each and every provision of this chapter pertaining to such commercial cannabis business, and complying with all other applicable state statutes and regulations and city ordinances and resolutions. (Ord. 1419 § 1 (part), 2019).

5.10.060 Evidence of cannabis employee background check and badge requirement.

(a) Any person who is an employee or who otherwise works within a commercial cannabis business must be legally authorized to do so under applicable state law.

(b) Commercial cannabis business owners and operators shall be required to provide the chief of police with evidence of the completion of a criminal background check for all persons in their employment.

(c) The criminal background checks completed by commercial cannabis business employers must at a minimum identify the following:

(1) Whether the individual applying for employment has ever been convicted of a violent felony as defined by California Penal Code Section 667.5, or equivalent offenses in other states;

(2) Whether the individual applying for employment has ever been convicted of a crime involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in California Penal Code Sections 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states; or

(3) Whether the individual applying for employment has ever been convicted of the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, not including cannabis-related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.

(d) Evidence of a conviction of any the offenses enumerated in subsection (c) of this section shall be grounds for denial of employment. Employers who wish to hire an individual notwithstanding this rule shall apply to the chief of police, who at his/her sole discretion may issue a written waiver.

(e) Violation of this section shall be grounds for immediate suspension of the business’s operating permit, pending a hearing before the city manager or his or her designee and the chief of police within thirty days for a final determination of the status of the permit.

(f) All agents, officers, or other persons acting for or employed by a licensee shall display a laminated or plastic-coated identification badge issued by the city or by the licensee if authorized by the chief of police at all times while engaged in commercial cannabis activity. (Ord. 1419 § 1 (part), 2019).

5.10.070 Personnel prohibited from holding a license or from employment with a cannabis business permittee.

(a) Any person, including but not limited to any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, in which any of the following actions or notices have been issued for noncompliance, shall be prohibited from holding a cannabis commercial license or from employment with a cannabis business permittee in the city of Marysville:

(1) The applicant has been denied a license or has had a license suspended or revoked by any city, county, city and county or any other state cannabis licensing authority;

(2) The applicant was notified that it was conducting commercial cannabis activity in violation of this chapter, Chapter 18.67, or Chapter 18.12 and any other city of Marysville ordinances, codes and requirements, and failed to cure the violation in a timely manner;

(3) Evidence that the applicant is delinquent in payment of federal, state or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;

(4) As of November 14, 2019, applicant was conducting commercial cannabis activity in the city of Marysville in violation of local and state law.

(b) No person shall be issued a commercial cannabis permit to operate who enters into either a verbal or written agreement to lease, sublease, or any other agreement for any terms of use of the premises granted by a property owner, commercial broker or any third party that is in violation of Section 5.10.050 unless that property is leased at fair market value. Any such lease, sublease or agreement shall not contain terms or conditions requiring the cannabis permit licensee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the city. In addition, all leases, subleases, or other agreements must be based on a monthly rate. (Ord. 1419 § 1 (part), 2019).

5.10.075 Employee work permit—Initial application.

(a) Any person who seeks employment in any commercial cannabis business shall submit an application to the chief of police for a work permit prior to entering into such employment. The application shall be submitted on forms supplied by the police department and shall include, but not be limited to, the true name, address and description of the applicant, the name and address of the applicant’s employer and the position the applicant holds. The application shall be accompanied by the fingerprints of the applicant in cases where the applicant’s fingerprints are not already on file at the police department. Each application for a work permit shall be accompanied by a nonrefundable fee in an amount established by resolution of the city council plus any applicable processing or administrative fees established by other federal or state agencies.

(b) The chief of police may deny to such applicant a work permit if the applicant has been convicted of a felony or any crime enumerated in Section 5.10.130(a). Furthermore, the chief of police may deny such permit if, based upon investigation into the background of the applicant, the chief of police determines that the applicant is of poor moral character and is not likely to carry on in a lawful manner the activities for which the work permit is required or if the applicant has deliberately given false answers to questions contained in the application submitted. No person shall work in a cannabis business in the city and no cannabis business shall employ any person after the chief of police has denied his or her application for a work permit. Any work permit issued hereunder shall expire one year from the date of issuance.

(c) Any person whose application for a work permit pursuant to this section has been denied may appeal that determination to the city manager. Written notice of such appeal shall be filed with the city clerk no later than ten days after denial of the permit. The appeal shall include a statement of the grounds of the appeal. The city manager shall thereafter hear the appeal and affirm, modify or overrule the determination appealed. Upon failure to file the notice of appeal within such ten-day period, the denial shall be final and conclusive. (Ord. 1432 § 1, 2021; Ord. 1419 § 1 (part), 2019).

5.10.076 Employee work permit—Renewal application.

Not less than thirty days prior to the expiration date of a currently valid commercial cannabis employee work permit, the permittee shall apply for the renewal of said permit. Renewal is not automatic. The application shall be accompanied by a nonrefundable fee in an amount established by resolution of the city council. The chief of police may grant such renewal provided it finds that all facts set forth in the renewal application are substantially the same as on the original application and the permittee has not violated any provisions of this chapter, or the chief of police may deny such renewal pursuant to Section 5.10.075. The decision of the chief of police shall be appealable to the city council pursuant to Sections 5.10.150 through 5.10.170. (Ord. 1419 § 1 (part), 2019).

5.10.080 Maximum number and type of authorized commercial cannabis businesses permitted.

The number of each type of commercial cannabis business that shall be permitted to operate in the city shall be established by resolution by the city council.

(a) This section is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the city under each category. Nothing in this chapter creates a mandate that the city council must issue any or all of the commercial cannabis business permits if it is determined that the applicants do not meet the standards which are established in the application requirements or further amendments to the application process or that the city council upon further deliberation determines that the issuance of any or all commercial cannabis business permits will impact the public safety, welfare or other policy concerns which may be detrimental in the issuance of these permits.

(b) Each year following the city council’s initial award of permits, if any, or at any time in the city council’s discretion, the city council may reassess the number of commercial cannabis business permits which are authorized for issuance. The city council at its discretion may determine that the number of commercial cannabis permits should stay the same or be expanded. (Ord. 1419 § 1 (part), 2019).

5.10.090 Initial application procedure.

(a) The city manager or his or her designee shall adopt the procedures to govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any commercial cannabis business permit(s), which shall include or require the city manager or his or her designee to provide detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to each set of review criteria ("review criteria"). The city manager or his/her designee(s) shall be authorized to prepare the necessary forms, adopt any necessary rules to the application, regulations and processes, solicit applications, conduct initial evaluations of the applicants.

(b) The city manager or his or her designee, upon approval of the application procedures, shall cause to be published a notice in a newspaper of general circulation in the city of the fact that the city is accepting initial applications pursuant to this chapter and shall include in the notice a deadline for submittal of each initial application.

(c) At the time of filing, each applicant shall pay an application fee, established by resolution of the city council, to cover all costs incurred by the city in the application process.

(d) Upon receipt of an application for a commercial cannabis business, the cannabis review committee shall cause the following actions to be taken:

(1) The building official and the fire chief shall make a full and complete investigation of the building and location where the applicant proposes to conduct such business or activity to ensure that such building and location comply with all pertinent state and local laws and regulations including, without limitation, building and fire codes and pertinent zoning regulations. In the event the applicant intends to build a new structure to house such business or activity, the plans and specifications therefor shall be submitted to the building official and fire chief for approval and such structure shall be built in strict conformity with the approved plans and specifications.

(2) The cannabis review committee shall make a complete and full investigation of the person(s), firm or entity applying for a license, including the criminal backgrounds of the individual applicants or principal individuals in the firm or entity in the same manner and to the same extent as described in Section 5.10.300(k).

(3) The cannabis review committee, in consultation with the chief of police or his designee and the community development and services department, shall make a complete and full investigation of the proposed place of business to identify any safety or security concerns, and to ensure compliance with all sections of this chapter.

(4) The cannabis review committee shall determine whether the proposed location of the business or activity would, under these circumstances, tend to cause a police problem or create a public nuisance or be contrary to the public interest.

(5) The investigation and reports required by this section shall be made within forty-five days after an application is received and deemed to be complete by the cannabis review committee.

(e) Once the investigations required by Section 5.10.210 are complete, they must certify that the proposed lot/location meets all separation requirements of Section 18.67.030 prior to the determination by the cannabis review committee on the application for the license. Each initial application that is in compliance with this chapter based upon the criteria set forth therein and specifically in subsection (c) of this section shall be placed on a qualified registration list and the cannabis review committee shall notify the applicant in writing of its qualified registration status.

(f) Each applicant included on the qualified registration list following initial review as provided in this section shall, within thirty days after the published cutoff date to submit initial applications, submit to the cannabis review committee a cannabis performance agreement, a detailed business plan for the conduct of operations at the proposed retail site in Marysville, together with a nonrefundable fee established by resolution of the city council. Said business plan shall include all pertinent business considerations including, but not limited to, hours of operation, staffing for all operating shifts, lifeline pricing schedules (if any) for low- and fixed-income patients, source(s) of product inventory, type(s) of cannabis products offered at retail to eligible end users or caregivers, detailed security plan, public benefits (if any) to be offered to the community, the amount of on-site cultivation of cannabis (if any) including the amount of cultivation for wholesale to other licensed commercial cannabis businesses within or outside of Marysville. Scoring criteria for use in evaluating detailed business plans may be established by resolution of the city council.

(g) After the initial review, ranking, and scoring under the review criteria, the cannabis review committee or its designee(s) will make a final determination in accordance with this section.

(h) The application procedure process shall include a component on community benefits. Any community benefits that a commercial cannabis business agrees to provide shall be incorporated into the terms and conditions under which the commercial cannabis business will operate with the city’s approval, if and when an operating permit is issued. Such terms and conditions shall be in addition to the requirements of this chapter. Community benefits shall include, but not be limited to: in-kind donations; sponsorship of community events; support, financial or otherwise, for special community events such as fairs, after-school programs, youth centers, Boys and Girls Clubs, local schools whether public or private; school athletic programs; school clubs; community centers, senior centers and senior living facilities; and parks and recreation.

(i) The City’s Reservation of Rights. The city reserves the right to reject any or all applications. Prior to permit issuance, the city may also modify, postpone, or cancel any request for applications, or the entire program under this chapter, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California state law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this chapter, may be cancelled at any time prior to permit issuance. The city further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to a failure to comply with other requirements in this chapter, an application risks being rejected for any of the following reasons:

(1) The application was received after the designated time and date of the deadline.

(2) The application did not contain the required elements, exhibits, or was not organized in the required format.

(3) The application was considered not fully responsive to the request for a permit application, i.e., was substantially incomplete. (Ord. 1419 § 1 (part), 2019).

5.10.100 Permittee selection process.

(a) The city manager or his or her designee, upon final approval by the city council, shall adopt an application procedure guideline and review criteria by which the top applicants in each category of each commercial cannabis business shall be evaluated in a final determination by the city manager or his or her designee.

(b) Once the proposed locations of the applicants’ businesses have been determined upon an initial examination by the community development staff, and zoning verification letters have been issued to the applicants, a public hearing shall be set in which concerns of residents and affected businesses alike may be brought before the city. At the discretion of the city council, the hearing may be before the council itself, or conducted by the city manager and/or his/her designee.

(c) At least ten days prior to the public hearing, notice of the public hearing shall be sent to all property owners located within four hundred feet of the proposed business locations of each of the finalists to be considered by the city manager or his or her designee.

(d) Applications shall be vetted by the city manager or his or her designee and a team of his/her choice, or his/her designee, consistent with Section 5.10.090(d). At the conclusion of the vetting process, staff shall prepare a report making the case for recommendations for approval by the city manager or his or her designee. The recommendations shall include a summary of the concerns voiced by the community at the public hearing.

(e) Official issuance of the commercial cannabis business permit(s), however, is conditioned upon the prevailing candidate(s) obtaining all required land use approvals. Upon reporting to the city council on the businesses that were awarded a permit, the city manager or his or her designee shall transmit the list of permittees to the community development and services department. Following the city manager’s or his or her designee’s selection, the prevailing candidate(s) shall apply to the city’s community development and services department to obtain any required land use approvals or entitlements for the permittee’s location, if any. Land use approvals shall include compliance with all applicable provisions of CEQA. The city manager or his/her designee(s) shall formally issue the commercial cannabis business permit(s) once the community development and services director or his/her designee(s) affirms that all of the required land use approvals have been obtained.

(f) The city manager or his or her designee shall either deny or approve the final candidates and shall select the top candidates in each category of the commercial cannabis businesses. The decision of the city manager or his or her designee as to the selection of the prevailing candidates shall be final, pending an appeal, in the event an appeal is filed.

(g) Issuance of a commercial cannabis business permit does not create a land use entitlement. The commercial cannabis business permit shall only be for a term of twelve months and shall expire at the end of the twelve-month period unless it is renewed as provided herein. Furthermore, no permittee may begin operations, notwithstanding the issuance of a permit, unless all of the state and local laws and regulations, including but not limited to the requirements of this chapter and of the permit, have been complied with, until a state license is available and obtained by the permitted operator as set forth in Section 5.10.050.

(h) Notwithstanding anything in this chapter to the contrary, the city manager or his or her designee reserves the right to reject any or all applications if it determines it would be in the best interest of the city, taking into account any health, safety and welfare impacts on the community. Applicants shall have no right to a commercial cannabis business permit until a permit is actually issued, and then only for the duration of the permit’s term. Each applicant assumes the risk that, at any time prior to the issuance of a permit, the city council may terminate or delay the program created under this chapter.

(i) If an application is denied, a new application may not be filed for one year from the date of the denial.

(j) Each person granted a commercial cannabis business permit shall be required to pay the permit fee established by resolution of the city council, to cover the costs of administering the commercial cannabis business permit program created in this chapter. (Ord. 1419 § 1 (part), 2019).

5.10.110 Expiration of commercial cannabis business permits.

Each commercial cannabis business permit issued pursuant to this chapter shall expire twelve months after the date of its issuance. Commercial cannabis permits may be renewed as provided in Section 5.10.120. (Ord. 1419 § 1 (part), 2019).

5.10.120 Renewal of cannabis business permits.

(a) An application for renewal of a commercial cannabis business permit shall be filed at least sixty calendar days prior to the expiration date of the current permit.

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

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

(d) An application for renewal of a commercial cannabis business permit shall be rejected if any of the following exists:

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

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

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

(4) The commercial cannabis business has failed to conform to the requirements of this chapter, or of any regulations adopted pursuant to this chapter.

(5) The permittee fails or is unable to renew its state of California license.

(6) If the city or state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of this chapter, of the city ordinance, or of the state rules and regulations, and the city or state has determined that the violation is grounds for termination or revocation of the commercial cannabis business permit.

(e) The cannabis review committee is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the cannabis review committee is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the cannabis review committee shall be appealable to the city manager pursuant to Sections 5.10.150 through 5.10.170.

(f) If a renewal application is rejected, a person may file a new application pursuant to this chapter no sooner than one year from the date of the rejection.

(g) Prior to the annual renewal the facility shall be subject to a fire and safety inspection. (Ord. 1432 § 2, 2021; Ord. 1419 § 1 (part), 2019).

5.10.130 Suspension, revocation and renewal of permits and licenses.

(a) The cannabis review committee may revoke, suspend, or decline to renew any license or permit issued under this chapter, or for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to Section 5.10.120 (renewals) or 5.10.190 (transfer of business permits), or pursuant to any policy, procedure or regulation in this chapter. Grounds for revocation, suspension or nonrenewal of a license or permit shall include the following:

(1) The failure of the licensee or permit holder to comply with the provisions of this chapter or any other law pertaining to commercial cannabis businesses;

(2) The giving of false or misleading information by the licensee or permit holder in making application for a license or permit or in connection with an investigation conducted by the city or any other state, local or federal agency;

(3) The conviction of the licensee or permit holder of:

(A) Any felony;

(B) Any offense involving gambling, narcotics, use of force or violence, theft, embezzlement or any other offense involving moral turpitude;

(4) Any cause for denying an original license or permit as set forth in this chapter;

(5) The revocation, suspension, or nonrenewal of associated state licenses/permits to operate a commercial cannabis business, which revocation, suspension or nonrenewal the licensee shall disclose immediately to the cannabis review committee;

(6) The failure of the licensee or permit holder to diligently initiate business operations or to continue to carry on business operations in a manner substantially as set forth in the business plan, safety and security plan and cannabis performance checklist submitted in support of the licensee’s original or renewal application to operate a commercial cannabis business, as appropriate.

(b) The determination of the cannabis review committee to suspend, revoke or decline to renew a license or permit shall be made in writing and mailed or delivered to the licensee or permittee. The determination of the cannabis review committee shall become effective ten days following the date of the notice of that determination. The licensee or permittee may, during such ten-day period, appeal the determination of the cannabis review committee to the city manager. If the licensee or permittee fails to file the notice of appeal within such ten-day period, the determination of the cannabis review committee shall be final and conclusive. If a written notice of appeal is filed with the city clerk during such ten-day period, the determination of the cannabis review committee shall be stayed pending the city manager’s hearing and decision on the appeal. (Ord. 1432 § 3, 2021; Ord. 1419 § 1 (part), 2019).

5.10.140 Effect of state license suspension, revocation, or termination.

Suspension of a license issued by the state of California, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the city, until the state of California, or its respective department or division, reinstates or reissues the state license. Should the state of California, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the city of Marysville. At the city manager’s or his or her designee’s discretion, the cannabis business owner may reapply for a local permit at such time as it can demonstrate that the grounds for revocation of the license by the state no longer exist, or that the underlying deficiency has otherwise been cured. (Ord. 1419 § 1 (part), 2019).

5.10.150 Appeals.

Unless specifically provided elsewhere to the contrary, whenever an appeal is provided for in this chapter from a decision of the city manager, the appeal shall be conducted as prescribed in this chapter. (Ord. 1432 § 4, 2021; Ord. 1419 § 1 (part), 2019).

5.10.160 Written request for appeal.

(a) Within ten calendar days after the date of a decision of the cannabis review committee to revoke, suspend or deny a permit, or to add conditions to a permit, an aggrieved party may appeal such action by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper.

(b) At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the city council from time to time. (Ord. 1432 § 5, 2021; Ord. 1419 § 1 (part), 2019).

5.10.170 Appeal hearing process.

(a) Upon receipt of the written appeal, the city clerk shall set the matter for a hearing before the city manager. The city manager shall hear the matter de novo and shall conduct the hearing pursuant to the procedures set forth by the city.

(b) The appeal shall be held within a reasonable time after date of filing, but in no event later than fifteen working days from that date. The city shall notify the appellant of the time and location at least ten days prior to the date of the hearing.

(c) At the hearing, the appellant may present any evidence it deems relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.

(d) The city manager may at their discretion continue the hearing if circumstances warrant such action. Alternatively, the city manager may exercise their discretion to either affirm, modify, or overrule the determination appealed.

(e) If the decision of the city manager is to grant the appeal, then the applicant may move forward to the permitting process as provided by this chapter.

(f) If the decision of the city manager is to deny the appeal, then that decision shall be final. (Ord. 1432 § 6, 2021; Ord. 1419 § 1 (part), 2019).

5.10.180 Change in location—Updated registration form.

(a) Any time the retail, cultivation, manufacturing, transportation and distribution location specified in the regulatory permit is changed, the applicant shall reregister with the city manager or his/her designee(s). The process and the fees for reregistration shall be the same as the process and fees set forth for registration in Sections 5.10.190(c) and 5.10.260.

(b) Within fifteen 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 commercial cannabis business ownership or management members, the applicant shall file an updated registration form with the city manager or his/her designee(s) for review along with a registration amendment fee, as set forth in Sections 5.10.190(c) and 5.10.260. (Ord. 1419 § 1 (part), 2019).

5.10.190 Transfer of cannabis business permit.

(a) The owner of a cannabis business permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the cannabis review committee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the cannabis review committee in accordance with all provisions of this chapter (as though the transferee were applying for an original cannabis business permit). The proposed transferee’s application shall be accompanied by a transfer fee in an amount set by resolution of the city council (or, if not set, shall be the same amount as the application fee).

(b) The cannabis review committee shall conduct a hearing to determine whether the transferee passed the background check required for permittees and meets all other requirements of this chapter.

(c) Commercial cannabis business permits issued through the grant of a transfer by the cannabis review committee shall be valid for a period of one year beginning on the day the cannabis review committee approves the transfer of the permit. Before the transferee’s permit expires, the transferee shall apply for a renewal permit in the manner required by this chapter.

(d) Changes in ownership of a permittee’s business structure or a substantial change in the ownership of a permittee’s business entity (changes that result in a change of more than fifty-one percent of the original ownership) must be approved by the cannabis review committee or its designee through the transfer process contained in subsection (a) of this section. Failure to comply with this provision is grounds for permit revocation.

(e) A permittee may change the form of business entity without applying to the cannabis review committee for a transfer of permit; provided, that either:

(1) The membership of the new business entity is substantially similar to original permit holder business entity (at least fifty-one percent of the membership is identical); or

(2) If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA and in compliance with this section; provided, that the board of directors (or, in the case of an unincorporated association, the individual(s) listed on the city permit application) of the original permittee entity is the same as the new business entity. Although a transfer is not required in these two circumstances, the permit holder is required to notify the city manager in writing of the change within ten days of the change. Failure to comply with this provision is grounds for permit revocation.

(f) No commercial cannabis business permit may be transferred when the city manager or his/her designee has notified the permittee that the permit has been or may be suspended or revoked.

(g) Any attempt to transfer a commercial cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit. (Ord. 1419 § 1 (part), 2019).

5.10.200 City business license.

Prior to commencing operations, a commercial cannabis business shall obtain a city of Marysville business license. (Ord. 1419 § 1 (part), 2019).

5.10.210 Building and fire permits and inspection.

Prior to commencing operations, a commercial cannabis business shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), Marysville fire department approvals, health department approvals and other zoning and land use permit(s) and approvals, including an operational permit pursuant to Section 13.20.071. (Ord. 1419 § 1 (part), 2019).

5.10.215 Fire safety regulations—Cultivation, processing and manufacturing/extraction facilities.

(a) Application.

(1) This section shall apply to the growing and processing of cannabis within new and existing buildings.

(2) The use, storage, transfilling, and handling of hazardous materials shall comply with this chapter, as well as Chapter 13.20 and other applicable provisions of this code.

(3) This section shall not apply to the retail sale of cannabis where growing and processing does not occur.

(4) Where a material, its use, or associated process poses multiple hazards, all hazards shall be addressed in accordance with applicable requirements of this code.

(5) The occupancy of buildings or portions of buildings where the growing or processing of cannabis occurs shall be in accordance with applicable building and fire codes.

(b) Permits. Permits, where required, shall comply with California Fire Code and applicable local standards.

(c) Fire Protection Systems. Fire protection systems shall be provided in accordance with Chapter 9, California Fire Code.

(d) Means of Egress. Means of egress shall be in accordance with Chapter 10, California Fire Code.

(e) Growing or Production of Cannabis.

(1) Ventilation for Light Fixtures. Light fixture ductwork shall be installed in accordance with the manufacturer and NFPA 90A.

(2) Odor Control. The use of ozone generators used for odor control shall comply with applicable standards as approved by the local authority having jurisdiction (AHJ).

(f) Interior Finish, Contents, and Furnishings.

(1) Interior finish, including the use of any plastic, mylar, or other thin film sheeting to enclose rooms or cover any walls or ceilings, shall be in accordance with applicable codes and standards.

(2) Hanging of plastic from ceiling or from suspended overhead structures to create wall dividers shall not be permitted.

(g) Fumigation.

(1) General. Any cannabis growing facility that is fumigated shall comply with subsection (g)(4) of this section.

(2) Sources of Ignition. Sources of ignition shall be shut off during the fumigation activity and remain shut off until the required ventilation is completed.

(3) Notification. The AHJ and fire department shall be notified in writing not less than forty-eight hours before the building, structure, or space is to be closed in connection with the utilization of any toxic or flammable fumigant.

(4) Notification, as required by subsection (g)(3) of this section, shall include the following: the location of the enclosed space to be fumigated or fogged, the occupancy, the fumigants or insecticides to be utilized, the person or persons responsible for the operation, and the date and time at which the operation will begin.

(5) Written notice of any fumigation or insecticidal fogging operation shall be given to all affected occupants of the building, structure, or space in which such operations are to be conducted with sufficient advance notice to allow the occupants to evacuate the building, structure, or space.

(6) Written notice, as required by subsection (g)(3) of this section, shall inform the occupants as to the purposes, anticipated duration, and hazards associated with the fumigation or insecticidal fogging operation.

(7) Signage. Approved warning signs indicating the danger, type of chemical involved, and necessary precautions shall be posted on all doors and entrances to the premises, including interior rooms and areas.

(8) Signage shall be located at the exterior main entry and at the entries to those areas being fumigated indicating the duration of the fumigation.

(9) Watch Personnel. During the period fumigation is in progress a watchperson shall remain on duty at the entrance or entrances to the enclosed fumigated space until after the fumigation is completed and the building, structure, or space is properly ventilated and safe for occupancy.

(10) Sufficient watchpersons shall be provided to prevent any person from entering the enclosed space under fumigation unobserved.

(11) Occupancy During Fumigation. Occupants of the building, structure, or space to be fumigated, except the personnel conducting the fumigation, shall be evacuated from such building, structure, or space prior to commencing fumigation operations.

(12) Sealing of Building, Structure, or Space. Paper, and other similar materials, used to wrap or cover a building, structure, or space in excess of that required for the sealing of cracks, casements, and similar openings shall meet the flame propagation performance criteria of Test Method 1 or Test Method 2 of NFPA 701.

(13) Maintenance of Openings. All openings to the building, structure, or space to be fumigated or fogged shall be kept securely closed during such operation.

(14) Venting and Cleanup. At the end of the exposure period the following procedures shall be followed: Fumigators shall safely and properly ventilate the premises and contents; fumigant containers, residues, debris, and other materials used for such fumigation shall be properly disposed; and obstructions shall be cleared from gas-fired appliance vents.

(h) Pesticide Application.

(1) A warning sign shall be provided to indicate that pesticides have been applied.

(2) A record of pesticide application shall be provided and shall include the following:

(A) The pesticide product or chemical used;

(B) The date and time the pesticide was applied; and

(i) Processing or Extraction.

(1) Extraction Room. Extraction rooms in a cannabis extraction facility shall be constructed in accordance with the building code and this code.

(2) For other than CO2 and nonhazardous extraction processes, the cannabis extraction equipment and process shall be located in a room of noncombustible construction dedicated to the extraction process and the room shall not be used for any other purpose.

(3) Cannabis extraction shall not be located in any building containing assembly, educational, day care, health care, ambulatory health care, residential board and care, residential, or detention and correctional facilities.

(4) Means of Egress. For extraction rooms using hazardous materials, each room shall be provided with at least one exit access door complying with the following: the door shall swing in the direction of egress travel; the door shall be provided with a self-closing or automatic closing device; and the door shall be equipped with panic or fire exit hardware.

(5) Staffing. For other than approved, unattended processes, the extraction process shall be continuously staffed.

(6) Staff monitoring the extraction process shall be trained in the following: the extraction process; the transfer of solvents, where applicable; and all emergency procedures.

(7) All staff training records shall be maintained on site and made available to the AHJ upon request.

(8) Operator Training.

(A) In addition to the provisions of this subsection (i), the operator of the cannabis extraction equipment shall also receive training in safe operation of the equipment.

(B) Documentation of training required by subsection (h)(1) of this section shall be maintained on site and made available to the AHJ upon request.

(9) Signage.

(A) All applicable safety data sheets (SDS) shall be posted in the extraction room.

(B) The NFPA 704 hazard rating diamond sign and no smoking signs shall be posted on the exterior of the extraction room door.

(j) Systems, Equipment and Processes.

(1) Systems, equipment and processes shall be in accordance with this subsection (j) and subsection (k) of this section.

(2) Systems, equipment and processes shall include, but are not limited to, vessels, chambers, containers, cylinders, tanks, piping, tubing, valves, fittings and pumps.

(3) In addition to the requirements in this subsection (j), systems, equipment and processes shall also comply with other applicable provisions of this code, the California Building and Fire Codes, and NFPA 90A.

(4) Systems or equipment used for the extraction of cannabis/cannabis oils and products from plant material shall be performed using equipment that has been listed or approved by the fire chief.

(k) Equipment.

(1) Where an explosion condition exists, heating equipment such as vacuum ovens, heating mantels, heat guns, or other equipment shall not be used to heat flammable or combustible liquids or oils containing liquified petroleum gases.

(2) Refrigerators, freezers, and other cooling equipment used to store or cool flammable liquids shall be listed for the storage of flammable/combustible liquids or be listed for Class I, Division 1 locations, as described in Article 501 of NFPA 70.

(3) Liquified petroleum gas (LPG) tanks shall comply with California Fire Code and any other applicable standards.

(l) Approval for Systems and Equipment with No Listing.

(1) Where the system used for extraction of cannabis oils and products from plant material is not listed, the system shall have a designer of record.

(2) The designer of record shall be a registered design professional.

(3) Documentation for Equipment with No Listing. For systems not listed for the specific use, a technical report documenting the design or peer review of the equipment shall be prepared and submitted to the AHJ for review and approval.

(m) Change of Extraction Medium.

(1) Where the medium of extraction or solvent is changed from the material indicated in the technical report or as required by the manufacturer, the technical report shall be revised at the cost of the facility owner and submitted for review and approval by the AHJ prior to the use of the equipment with the new medium or solvent.

(2) If the original designer of record is not available, then the new designer of record shall comply with subsection (j) of this section.

(n) Equipment Field Verification.

(1) Prior to operation of the extraction equipment, the designer of record for the equipment shall inspect the site of the extraction process once equipment has been installed for compliance with the technical report and the building analysis.

(2) The designer of record performing the field verification shall provide a report of findings and observations of the site inspection to the AHJ for review and approval prior to the approval of the extraction process.

(3) The field inspection report authorized by the designer of record shall include the serial number of the equipment used in the process and shall confirm the equipment installed is the same model and type of equipment identified in the technical report.

(o) Liquified Petroleum Gas (LPG) Extraction.

(1) General.

(A) Cannabis extraction facilities using liquified petroleum gas solvents shall comply with subsections (h) and (n) of this section.

(B) Exhaust. An approved exhaust system shall be provided for the LPG extractions.

(D) All LPG extraction operations, including processes for off-gassing spent plant material and oil retrieval, shall be conducted within a chemical fume hood or enclosure in compliance with NFPA 91 or the mechanical code.

(2) Electrical.

(A) All conductive equipment and conductive objects within the exhaust room shall be bonded and grounded with a resistance of less than 1.0 x 106 ohms in accordance with NFPA 70.

(B) The area within a hood or enclosure used for LPG extractions shall be classified as a Class I, Division 1 hazardous location in accordance with NFPA 70. Areas adjacent to Class I, Division 1 locations shall be classified in accordance with NFPA 70.

(C) All electrical components within the extraction room shall be interlocked with the hazardous exhaust system such that room lighting and other extraction room electrical equipment will only operate when the exhaust system is in operation.

(D) An automatic emergency power system shall be provided for the following items, when installed: extraction room lighting, extraction room ventilation systems, and solvent gas detection systems.

(p) Extraction Room Gas Detection System.

(1) An approved continuous gas detection system shall be provided.

(2) The gas detection system shall alert the extraction operator in an approved manner at a gas detection threshold no greater than twenty-five percent of the gas LEL/LFL.

(3) Gas detection systems shall be provided with constant noninterlocked power.

(q) Protection. An automatic suppression system shall be provided within hoods or enclosures, including ductwork, in accordance with the following: an automatic water sprinkler system that meets all applicable requirements of NFPA 13, a carbon dioxide extinguishing system that meets all applicable requirements of NFPA 12, a dry chemical extinguishing system that meets all applicable requirements of NFPA 17, or a gaseous agent extinguishing system that meets all applicable requirements of NFPA 2001.

(r) Storage. LPG containers not in use shall not be stored within extraction rooms.

(s) Facility Piping Systems. LPG liquid piping systems shall be in compliance with NFPA 58.

(t) Flammable and Combustible Liquid Extraction.

(1) General. Cannabis extraction facilities using flammable and combustible liquid solvents shall comply with subsections (h)(1) and (s) of this section.

(2) Exhaust. Extraction and post oil processing operations, including dispensing of flammable liquids between containers, shall be performed in one of the following locations:

(A) A chemical fume hood in accordance with Chapter 7 of NFPA 45; or

(B) An approved exhaust system installed in accordance with NFPA 91 or the mechanical code.

(3) Unheated processes at atmospheric pressure using less than sixteen oz. (four hundred seventy-three ml) of flammable liquids shall not be required to comply with subsection (t)(2) of this section.

(4) Classified electrical systems shall be in accordance with NFPA 70.

(5) All electrical components within the chemical fume hood or exhausted enclosure shall be interlocked such that the exhaust system shall be in operation for lighting and components to be used.

(6) Storage and Handling. The storage, use, and handling of flammable liquids shall be in compliance with this chapter and the California Fire Code.

(7) Heating of flammable or combustible liquids over an open flame shall be prohibited.

(u) Carbon Dioxide Extraction.

(1) General. Cannabis extraction facilities using carbon dioxide solvents shall comply with subsections (h)(1) and (t) of this section.

(2) Storage and Handling. All CO2 compressed gas cylinders shall be secured to a fixed object to prevent falling.

(v) CO2 Gas Detection.

(1) An approved, listed CO2 detector shall be installed in the CO2 extraction room.

(2) Auto-calibrating and self-zeroing devices or detectors shall be prohibited.

(3) The detector shall be set to alarm at five thousand ppm of CO2.

(w) CO2 Discharges. The extraction equipment pressure relief devices and blow-off valves shall be piped to the exterior of the building.

(x) Transfilling. Filling LPG extraction equipment supply containers shall be in compliance with NFPA 58 and applicable California fire and building codes. (Ord. 1419 § 1 (part), 2019).

5.10.220 Certification from the city manager or his or her designee.

Prior to commencing operations, a commercial cannabis business must obtain a certification from the city manager or his/her designee(s) certifying that the business is located on a site that meets all of the requirements of Sections 5.10.240 and 5.10.300. (Ord. 1419 § 1 (part), 2019).

5.10.230 Right to occupy and to use property.

As a condition precedent to the city’s issuance of a commercial cannabis business permit pursuant to this chapter, any person intending to open and to operate a commercial cannabis business shall provide sufficient evidence of the legal right to occupy and to use the proposed location. In the event the proposed location will be leased from the property owner, the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this chapter and consents to the operation of the commercial cannabis business on the owner’s property. (Ord. 1419 § 1 (part), 2019).

5.10.240 Location and design of cannabis businesses.

(a) Cannabis businesses permitted to engage in retail, cultivation, distribution, manufacturing, microbusiness (nonretail), or testing for cannabis and cannabis products are subject to the zoning and locational requirements contained in Section 18.67.030.

(b) Each proposed cannabis business project shall:

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

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

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

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

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

(6) Be provided with adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose. (Ord. 1419 § 1 (part), 2019).

5.10.250 Limitations on city’s liability.

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

(a) Execute an agreement, in a form approved by the city attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the city of Marysville, and its officers, officials, employees, representatives, and agents, harmless from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the city’s issuance of the commercial cannabis business permit, the city’s decision to approve the operation of the commercial cannabis business or activity, the process used by the city in making its decision, or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents.

(b) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the city manager.

(c) Reimburse the city of Marysville for all costs and expenses, including but not limited to legal fees and costs and court costs, which the city of Marysville may be required to pay as a result of any legal challenge related to the city’s approval of the applicant’s commercial cannabis business permit, or related to the city’s approval of a commercial cannabis activity. The city of Marysville may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. (Ord. 1419 § 1 (part), 2019).

5.10.260 Records and recordkeeping.

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

(b) Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this subsection shall be provided to the city manager or his/her designee(s) upon a reasonable request.

(c) Prior to state licensing, each commercial cannabis business shall maintain a record of all persons, patients, collectives and primary caregivers served by the commercial cannabis business, for a period of no less than four years. Once a state license is obtained, the commercial cannabis business must maintain such records only to the extent permitted or required by MAUCRSA.

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

(e) Each commercial cannabis business shall allow city of Marysville officials to have access to the business’s books, records, and accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four hours after receipt of the city’s request, unless otherwise stipulated by the city. The city may require the materials to be submitted in an electronic format that is compatible with the city’s software and hardware. (Ord. 1419 § 1 (part), 2019).

5.10.270 Security measures.

(a) A permitted commercial cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the city manager or his/her designee(s), these security measures shall include, but shall not be limited to, all of the following:

(1) Alarm system (perimeter, fire, and panic buttons).

(2) Remote monitoring of alarm systems by licensed security professionals.

(3) Perimeter lighting systems (including motion sensors) for after-hours security.

(4) Perimeter security and lighting as approved by the police chief and director of the community development and services department or his/her designee.

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

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

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

(8) Installing twenty-four-hour security surveillance cameras of at least HD quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The commercial cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the city manager or his/her designee(s), and that it is compatible with the city’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the city manager or his/her designee(s). Video recordings shall be maintained for a minimum of ninety days and shall be made available to the city manager or his/her designee(s) upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business and shall be capable of enlargement via projection or other means. Internet protocol address information shall be provided to the Marysville police department by the commercial cannabis business, to facilitate remote monitoring of security cameras by the department or its designee.

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

(10) Panic buttons shall be installed in all commercial cannabis businesses with direct notification to the Marysville police department dispatch and shall be configured to immediately alert dispatch for the Marysville police department.

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

(12) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building subject to building and fire safety inspection.

(13) Security personnel shall be on site twenty-four hours a day or alternative security as authorized by the city manager or his/her designee(s), and must have a verified response security patrol when closed. Security personnel must be licensed by the state of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the city manager or his/her designee(s), with such approval not to be unreasonably withheld. Firearms may be carried by security personnel while they are on duty if authorized by the chief of police.

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

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

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

(17) Each commercial cannabis business shall demonstrate to the chief of police, city manager or their designees compliance with the state’s track and trace system for cannabis and cannabis products, as soon as it is operational.

(18) Each commercial cannabis business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.

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

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

(b) Each commercial cannabis business shall identify a designated security representative/liaison to the city of Marysville, who shall be reasonably available to meet with the city manager or his/her designee(s) regarding any security-related measures and/or operational issues. The designated security representative/liaison shall, on behalf of the commercial cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the city manager or his/her designee upon request that meets the following requirements:

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

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

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

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

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

(6) Confirm that the licensed security personnel shall regularly monitor the parking lot and any adjacent property to ensure that these areas are: (A) free of individuals loitering or causing a disturbance; (B) are cleared of employees and their vehicles one-half hour after closing.

(c) As part of the application and permitting process each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.

(d) The commercial cannabis business shall cooperate with the city whenever the city manager or his/her designee(s) makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this chapter.

(e) A commercial cannabis business shall notify the city manager or his/her designee(s) within twenty-four hours after discovering any of the following:

(1) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city manager or his/her designee(s).

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

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

(4) Any other breach of security.

(f) Compliance with the foregoing requirements shall be verified by the city manager or his/her designee prior to commencing business operations. The city manager or his/her designee may supplement these security requirements once operations begin, subject to review by the city manager or his or her designee if requested by the business owner. (Ord. 1419 § 1 (part), 2019).

5.10.280 Restriction on alcohol and tobacco sales.

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

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

(c) No person shall consume cannabis, cannabis products, tobacco or alcohol on the premises of any commercial cannabis business. (Ord. 1419 § 1 (part), 2019).

5.10.290 Fees and charges.

(a) No person may commence or continue any commercial cannabis activity in the city without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. Fees and charges associated with the operation of a commercial cannabis activity shall be established by resolution of the city council which may be amended from time to time.

(b) All commercial cannabis businesses authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each commercial cannabis business shall cooperate with city with respect to any reasonable request to audit the commercial cannabis business’s books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period.

(c) 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 an operational or community benefit 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. (Ord. 1419 § 1 (part), 2019).

5.10.300 General operating requirements.

(a) Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the city. No person under the age of twenty-one shall operate, or be issued a permit for, a commercial cannabis business of any kind.

(b) Restriction on Consumption. Cannabis shall not be consumed by any employee on the premises of any commercial cannabis business.

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

(d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the city. The commercial cannabis business shall ensure that such information is compatible with the city’s recordkeeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the city manager or his/her designee(s) prior to being used by the permittee.

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

(f) Emergency Contact. Each commercial cannabis business shall provide the city manager or his/her designee(s) with the name and telephone number (both landline and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.

(g) Signage and Notices.

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

(2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window.

(3) Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited.

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

(5) Signage shall not depict any image of cannabis or cannabis products. No banners, flags, billboards or other prohibited signs may be used at any time.

(6) In accordance with state law and regulations or as stipulated in the city of Marysville regulatory permit, holders of a commercial cannabis business permit shall agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any commercial cannabis business located in the city of Marysville utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising. This subsection (g)(6) is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.

(h) Minors.

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

(2) Notwithstanding subsection (h)(1) of this section, persons aged eighteen to twenty years shall be allowed on the premises of a commercial cannabis business if they can produce a physician’s recommendation. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the physician’s recommendation.

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

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

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

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

(j) Display of Permit and City Business License. The original copy of the commercial cannabis business permit issued by the city pursuant to this chapter and the city-issued business license shall be posted inside the commercial cannabis business in a location readily visible to the public.

(k) Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorize city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes and authorize access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, contract employee or who otherwise works in a commercial cannabis business must submit fingerprints and other information deemed necessary by the chief of police or his/her designee(s) for a background check by the city of Marysville police department. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which require that there be a requirement or exclusion from employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a commercial cannabis business or a related work permit unless they have first cleared the background check, as determined by the chief of police or his/her designee(s), as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the city of Marysville to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted.

(l) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty feet of the premises. The cannabis business shall notify the Marysville police department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner.

(m) Permits and Other Approvals. Prior to the establishment of any commercial cannabis business or the operation of any such business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate.

(n) Each commercial cannabis operator shall establish minimum training standards for all employees. The city manager or his or her designee shall have the discretion to require other training for the business operations should the city identify deficiencies or noncompliance issues with city or state requirements. (Ord. 1419 § 1 (part), 2019).

5.10.310 Amendments to general operating requirements.

The city manager or his/her designee may develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety and welfare. (Ord. 1419 § 1 (part), 2019).

5.10.320 Operating requirements for storefront/retail facilities.

(a) No more than the number of cannabis retailers adopted by resolution may operate within the city of Marysville at any one time and shall be issued a permit by the city of Marysville.

(b) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen years. If the potential customer is eighteen to twenty years old, retailer shall confirm the customer’s possession of a valid doctor’s recommendation and/or H&S 11362.71 identification card (medical marijuana card). For adult-use purchases, retailers shall verify that all customers are twenty-one years of age or older for the purchase of cannabis or cannabis products.

(c) Entrances into the retailer shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access and entry to the retailer and separate it from the reception/lobby area. Individuals must show their government-issued identification, and, in the case of medical cannabis facilities, their physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71 in order to gain access into the retailer. The government-issued identification and, if applicable, doctor’s recommendation or cannabis card must also be shown at the point of sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.

(d) Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if authorized by the chief of police.

(e) Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

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

(g) Retailers and microbusinesses authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this section.

(1) The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.

(2) Retailers or microbusinesses shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.

(3) No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.

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

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

(6) A retail licensee or microbusiness licensee who is engaged in retail sale shall hire or contract for security personnel who are at least twenty-one years of age to provide security services for the licensed retail premises. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

(h) Access to Retailer Premises.

(1) Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least twenty-one years of age.

(2) Notwithstanding subsection (h)(1) of this section, individuals who are at least eighteen years of age and in possession of a valid physician’s recommendation shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician’s recommendation.

(i) Authorized Sales. A retailer shall only sell adult-use cannabis and adult-use cannabis products to individuals who are at least twenty-one years of age. A retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least eighteen years of age, but not yet twenty-one, if those individuals are in possession of a valid physician’s recommendation. Medicinal cannabis sales to individuals twenty-one years of age and older are unrestricted.

(j) Limited Access Areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least twenty-one years of age and, if not employed by the retailer, shall be escorted at all times by an employee of the licensee/permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the chief of police or the development services director upon request.

(k) Microbusiness—Commercial Activity. All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a Type 12 microbusiness permit shall occur on the same licensed premises. Areas of the premises for manufacturing and cultivation shall be separated from the distribution and retail areas by a wall and all doors between the areas shall remain closed when not in use.

(l) Operating hours of the storefront retailer license shall be limited to the hours of nine a.m. through nine p.m., seven days a week.

(m) Storefront/Retail Security Requirements. All provisions incorporated within Section 5.10.270 (Security measures) are directly applicable to and binding on all commercial cannabis businesses, including all storefront/retail businesses.

(n) All storefront retailers and microbusinesses who conduct delivery operations shall be subject to the operating requirements contained in Sections 5.10.330 and 5.10.340. (Ord. 1419 § 1 (part), 2019).

5.10.330 Operating requirements for nonstorefront retailer.

(a) Nonstorefront retailer (delivery) license owners and operators are required to verify the age and the necessary documentation of each medical customer to ensure the customer is not under the age of eighteen years, and to verify that the potential customer has a valid doctor’s recommendation. Doctor recommendations are not to be obtained or provided at the retail location.

(b) All storefront retailers, nonstorefront retailers (delivery) and microbusinesses which conduct deliveries into or within the city of Marysville shall be required to obtain a permit from the city of Marysville in order to conduct retail sales regardless if they are located in the city or another local jurisdiction.

(c) Operating hours of the nonstorefront retailer license shall be limited to the hours of nine a.m. through nine p.m., seven days a week.

(d) The commercial nonstorefront retailer shall only sell cannabis or cannabis products to a natural person twenty-one years of age or older, or a natural person eighteen years of age or older who possesses a physician’s recommendation for cannabis medical use only.

(e) The commercial cannabis nonstorefront retailer may only have on site that quantity of cannabis and cannabis products reasonably anticipated to meet the weekly demand for which they may need to be readily available for sale. (Ord. 1419 § 1 (part), 2019).

5.10.340 Nonstorefront retailer vehicle requirements.

Prior to commencing operations, a cannabis nonstorefront retailer shall provide the following information to the city:

(a) Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

(b) The year, make, model, color, license plate number, and numerical vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

(d) The licensee shall provide the city with the information required by this section in writing for any new vehicle that will be used to deliver cannabis goods prior to using the vehicle to deliver cannabis goods.

(e) The licensee shall provide the city with any changes to the information required by this section in writing within thirty calendar days. All retailers conducting cannabis deliveries under this chapter shall be the registered owner(s) or leasers of the vehicles used to conduct the delivery of cannabis or cannabis products as defined by the ordinance. (Ord. 1419 § 1 (part), 2019).

5.10.350 Operating requirements for a cultivation facility operation.

(a) Outdoor commercial cultivation is prohibited.

(b) In no case, shall cannabis plants be visible from a public or private road, sidewalk, park or any common public viewing area.

(c) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters.

(d) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.

(e) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.

(f) All applicants for a cannabis cultivation permit shall submit the following in addition to the information generally otherwise required for a commercial cannabis business:

(1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel; and a description of the cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.

(2) A description of a legal water source, irrigation plan, and projected water use.

(3) Identification of the source of electrical power and plan for compliance with applicable building codes and related codes.

(4) Plan for addressing odor and other public nuisances that may derive from the cultivation site. (Ord. 1419 § 1 (part), 2019).

5.10.360 Operating requirements for distributors.

(a) A distributor shall not store noncannabis goods or noncannabis accessories that are to be sold to another party on any licensed premises. Additionally, a distributor shall not distribute noncannabis goods or noncannabis accessories at a licensed premises. For the purposes of this section, noncannabis goods are any goods that do not meet the definition of cannabis goods as defined in Section 5000(c) of the California Code of Regulations.

(b) After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing.

(c) A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor’s premises.

(d) The distributor shall ensure that the batch size from which the sample is taken meets the requirements of state law, specifically the testing provisions within the California Code of Regulations.

(e) A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded, and the recording kept available to state and local authorities for a minimum of one hundred eighty days, pursuant to Section 5305 of the California Code of Regulations.

(f) A distributor shall not transport cannabis or cannabis products to a licensed retail facility until and unless it has verified that the cannabis or cannabis products have been tested and certified by a testing lab as being in compliance with state health and safety requirements pursuant to Sections 5705, 5710 and 5714 of the California Code of Regulations. (Ord. 1419 § 1 (part), 2019).

5.10.370 Operating requirements for testing labs.

(a) Testing labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100 and shall be subject to state and local law. Each testing lab shall be subject to additional regulations as determined from time to time as more regulations are developed under this chapter and any subsequent state of California legislation regarding the same.

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

(c) All cannabis testing laboratories performing testing shall obtain and maintain ISO/IEC 17025 accreditation as required by the Bureau of Cannabis Control.

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

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

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

(g) A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A testing lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received. (Ord. 1419 § 1 (part), 2019).

5.10.380 Operating requirements for cannabis manufacturing—Edibles and other cannabis products—Sale or distribution of edibles and other cannabis products.

(a) Cannabis manufacturing shall only be permitted pursuant to Section 5.10.005 or any subsequently created manufacturing state license as defined in MAUCRSA, and may be permitted to operate only within those zone districts as defined in Section 5.10.240.

(b) Any compressed gases used in the manufacturing process shall not be stored on any property within the city of Marysville in containers that exceed the amount which is approved by the Marysville fire department and authorized by the regulatory permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of tanks as authorized by the Marysville fire department on the property at any time.

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

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

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

(f) Certification from an engineer licensed by the state of California, or by a certified industrial hygienist, must be provided to the community development and services department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:

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

(2) American National Standards Institute (ANSI);

(3) Underwriters Laboratories (UL); or

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

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

(h) Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the fire department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes.

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

(j) Cannabis manufacturing facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.

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

(l) Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested. (Ord. 1419 § 1 (part), 2019).

5.10.390 Operating requirements for a microbusiness-cultivation facility and any other commercial cultivation operation.

Microbusinesses generally must comply with the local operating requirements and all requirements imposed by state law that apply to the specific activities operating under the umbrella of the individual microbusiness.

(a) Outdoor commercial cultivation is prohibited.

(b) In no case shall cannabis plants be visible from a public or private road, sidewalk, park or any common public viewing area.

(c) Commercial cannabis cultivation which is permitted in the city of Marysville shall not exceed ten thousand square feet of canopy space permitted by state law as part of a microbusiness license.

(d) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters.

(e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.

(f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated; to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.

(g) All applicants for a cannabis cultivation permit shall submit the following in addition to the information generally otherwise required for a commercial cannabis business:

(2) A description of a legal water source, irrigation plan, and projected water use.

(3) Identification of the source of electrical power and plan for compliance with applicable building codes and related codes.

(4) Plan for addressing odor and other public nuisances that may derive from the cultivation site. (Ord. 1419 § 1 (part), 2019).

5.10.400 Operating requirements for delivery services.

Prior to commencing operations, a cannabis out-of-city delivery service shall comply with the following requirements:

(a) Obtain from the city a permit authorizing the delivery of cannabis and cannabis products issued by the police department within the city limits. A copy of this permit shall be retained by all drivers.

(b) The retail business operating the delivery service shall provide the city manager or his/her designee with evidence of a valid state license for a commercial cannabis business on whose authorization the delivery service is performing the delivery function.

(c) The retail business operating the delivery service shall furnish to the city manager or his/her designee the year, make, model, color, license plate number, and numerical vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis goods. (Ord. 1419 § 1 (part), 2019).

5.10.410 Permissible delivery locations and customers.

Cannabis delivery businesses located outside of the city permitted to engage in delivery of cannabis and cannabis products inside the city of Marysville are subject to the following requirements:

(a) A licensed cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

(b) A licensed cannabis business shall comply with all requirements of state and local law pertaining to the cannabis permit and all subsequent policies, procedures and regulations which may be amended by the city manager from time to time in order to enforce this chapter. (Ord. 1419 § 1 (part), 2019).

5.10.420 Promulgation of regulations, standards and other legal duties.

(a) In addition to any regulations adopted by the city council, the city manager or his/her designee is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing operation of commercial cannabis businesses and the city’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

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

(c) Regulations promulgated by the city manager shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the city manager or his/her designee.

(d) Testing labs, distribution facilities, out-of-city delivery services and special events shall be subject to state law and shall be subject to additional city regulations as determined from time to time as more regulations are developed under Section 5.10.010 and any subsequent state of California legislation regarding the same. (Ord. 1419 § 1 (part), 2019).

5.10.430 Community relations.

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

(b) During the first year of operation pursuant to this chapter, the owner, manager, and community relations representative from each commercial cannabis business holding a permit issued pursuant to this chapter shall attend meetings with the city manager or his/her designee(s), and other interested parties as deemed appropriate by the city manager or his/her designee(s), to discuss costs, benefits, and other community issues arising as a result of implementation of this chapter. After the first year of operation, the owner, manager, and community relations representative from each such commercial cannabis business shall meet with the city manager or his/her designee(s) when and as requested by the city manager or his/her designee(s).

(c) Commercial cannabis businesses to which a permit is issued pursuant to this chapter shall develop a city-approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. (Ord. 1419 § 1 (part), 2019).

5.10.440 Fees deemed debt to the city of Marysville.

The amount of any fee, cost or charge imposed pursuant to this chapter shall be deemed a debt to the city of Marysville that is recoverable via an authorized administrative process as set forth in the city ordinance, or in any court of competent jurisdiction. (Ord. 1419 § 1 (part), 2019).

5.10.450 Permit holder responsible for violations.

The person to whom a permit is issued pursuant to this chapter shall be responsible for all violations of the laws of the state of California or of the regulations and/or the ordinances of the city of Marysville, whether committed by the permittee or any employee or agent of the permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permit holder’s presence. (Ord. 1419 § 1 (part), 2019).

5.10.460 Inspection and enforcement.

(a) The city manager, or his/her designee(s) charged with enforcing the provisions of the city of Marysville Municipal Code, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this chapter or under applicable provisions of state law.

(b) It is unlawful for any person having responsibility over the operation of a commercial cannabis business to impede, obstruct, interfere with, or otherwise not to allow the city to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this chapter or under state or local law.

(c) The city manager, or his/her designee(s) charged with enforcing the provisions of this chapter, may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes.

Any samples obtained by the city of Marysville shall be logged, recorded, and maintained in accordance with established procedures by the city of Marysville’s city manager or these regulations. (Ord. 1419 § 1 (part), 2019).

5.10.470 Compliance with state regulations.

It is the stated intent of this chapter to regulate commercial cannabis activity in the city of Marysville in compliance with all provisions of MAUCRSA and any subsequent state legislation. (Ord. 1419 § 1 (part), 2019).

5.10.480 Violations declared a public nuisance.

Each and every violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance. (Ord. 1419 § 1 (part), 2019).

5.10.490 Each violation a separate offense.

Each and every violation of this chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the city of Marysville. Additionally, as a nuisance per se, any violation of this chapter shall be subject to injunctive relief, any permit issued pursuant to this chapter being deemed null and void, disgorgement and payment to the city for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The city of Marysville may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the city manager, or his/her designee(s), may take immediate action to temporarily suspend a commercial cannabis business permit issued by the city, pending a hearing before the city manager, or his/her designee(s). (Ord. 1419 § 1 (part), 2019).

5.10.500 Criminal penalties.

Each and every violation of the provisions of this chapter may in the discretion of the district attorney or city attorney be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars or imprisonment in the county jail for a period of not more than twelve months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense. (Ord. 1419 § 1 (part), 2019).

5.10.510 Remedies cumulative and not exclusive.

The remedies provided herein are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by law. (Ord. 1419 § 1 (part), 2019).