Note: Prior ordinance history: Ord. No. 2556CCS.
Chapter 6.200 of this Code shall be known as the "City of Santa Monica Cannabis Ordinance" (hereinafter this "Ordinance"). The City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors, and businesses by developing and implementing strict performance and operating standards for commercial cannabis activities so that only the most qualified operators of such businesses will operate within the City. The purpose of this Ordinance is to effectuate these compelling interests by establishing regulatory requirements for commercial cannabis activities within the City.
(Added by Ord. No. 2828CCS, 9/30/2025)
For purposes of this Chapter, the following words shall have the following meanings:
(a) 
"Cannabis"
shall have the same meaning as set forth in Business and Professions Code Section 26001(f) as may be amended from time to time.
(b) 
"Cannabis product"
shall have the same meaning as set forth in Section 11018.1 of the Health and Safety Code as may be amended from time to time.
(c) 
"Cannabis retailer" or "cannabis retail business"
shall mean a licensed premises located within the City from which cannabis or cannabis products are intended to be sold or delivered from. A "cannabis retailer" includes any business engaging in retail cannabis, including businesses that sell cannabis or cannabis products for personal consumption or businesses that sell medicinal cannabis or medicinal cannabis products for personal consumption. A "cannabis retailer" includes a non-storefront cannabis retailer that is closed to the public and makes sales exclusively by delivery.
(d) 
"Cannabis permits"
shall refer to the cannabis retailer permits and non-City-based cannabis delivery permits, collectively.
(e) 
"Cannabis retailer permit"
shall mean an annual regulatory permit issued to cannabis retailers in conjunction with the City business license which allows the permittee to engage in allowable cannabis retailer activities consistent with the requirements of this Chapter, applicable law, any adopted rules and regulations, and State law.
(f) 
"City"
shall mean the City of Santa Monica.
(g) 
"Code"
shall mean the Santa Monica Municipal Code, as may be amended from time to time.
(h) 
"Commercial cannabis activity"
shall have the same meaning as that set forth in Business and Professions Code Section 26001(n) as the same may be amended from time to time.
(i) 
"Cultivation"
shall have the same meaning as set forth in Business and Professions Code Section 26001(o) as may be amended from time to time.
(j) 
"Delivery"
shall have the same meaning as set forth in Business and Professions Code Section 26001 as may be amended from time to time. "Delivery" shall also include the use by a business of any technology platform to facilitate delivery of cannabis or cannabis products.
(k) 
"Director"
shall mean the Director of Community Development, or designee.
(l) 
"Manufacture"
shall have the same meaning as set forth in Business and Professions Code Section 26001(al) as may be amended from time to time.
(m) 
"Medicinal cannabis," "medicinal cannabis product," and "cannabis product"
shall have the same meanings as set forth in Business and Professions Code Section 26001(am) as may be amended from time to time.
(n) 
"Non-City-based cannabis delivery permit"
shall mean the annual regulatory permit issued to non-City-based cannabis delivery retailers in conjunction with the City business license that allows the permittee to deliver cannabis and cannabis products within the City subject to the requirements of this Chapter, applicable law, adopted administrative regulations, and state law.
(o) 
"Non-City-based cannabis delivery retailer"
means a business that: (1) has no physical location within the City; and (2) is properly licensed in another California jurisdiction, which delivers cannabis to customers in the City.
(p) 
"Non-City-based cannabis delivery services"
means the cannabis delivery services provided by a non-City-based cannabis delivery retailer.
(q) 
"Non-storefront cannabis retailer"
means a cannabis retailer located within the City which sells cannabis and cannabis products to customers only through delivery.
(r) 
"Non-storefront cannabis delivery services"
means the cannabis delivery services provided by a non-storefront cannabis retailer.
(s) 
"Permittee"
means a person who has been issued either: (1) a cannabis retailer permit; or (2) a non-City-based cannabis delivery permit under this Chapter.
(t) 
"Retail cannabis"
shall mean the sale of cannabis and cannabis products to consumers, typically through licensed storefronts or delivery services. It includes the legal sale of both adult-use and medical cannabis and cannabis products, subject to State and local regulations.
(u) 
"Retailer"
shall have the same meaning as set forth in Business and Professions Code Section 26001(ay) as the same may be amended from time to time.
(v) 
"Storefront cannabis delivery services"
means a cannabis retailer with a physical location in the City which offers delivery of cannabis and/or cannabis products in addition to in-store sales.
(Added by Ord. No. 2828CCS, 9/30/2025)
(a) 
Business License Required. All cannabis retailers and all non-City-based cannabis delivery retailers shall obtain a business license from the City to engage in business in the City.
(b) 
Cannabis Retailer Permit Required. Prior to operating any retail cannabis business in the City, the owner or operator shall obtain a cannabis retailer permit for each location operating within the City.
(c) 
Non-City-Based Cannabis Delivery Permit Required. Prior to delivering cannabis and/or cannabis products to customers in the City, any business providing non-City-based cannabis delivery services shall first apply for and obtain a non-City-based cannabis delivery permit.
(Added by Ord. No. 2828CCS, 9/30/2025)
Application. In addition to any information or documents required by the Director, or adopted in administrative regulations issued pursuant to this Chapter, applications for a cannabis retailer permit shall include:
(a) 
Business entity information.
(b) 
Owner and officer information.
(c) 
Authorized representative information.
(d) 
A description of the proposed retail cannabis business activities.
(e) 
In the event the applicant is not the owner of record of the real property upon which the retail cannabis business is or is to be located, the application must be accompanied by a notarized statement and consent from the owner of the property acknowledging that the applicant intends to operate a cannabis business on the property. In addition to furnishing such notarized statement, the applicant shall furnish the name and address of the owner of record of the property, as well as a copy of the lease or rental agreement pertaining to the premises in which the cannabis business is or will be located.
(f) 
An executed release of liability and hold harmless in the form set forth in the City's application form.
(g) 
A description of the procedure for documenting the source of the cannabis to be dispensed by the cannabis use. Documentation that the location(s) where the cannabis is cultivated and manufactured have proper State and local permits and are compliant with the zoning regulations of the jurisdiction in which they are located.
(h) 
If selling medicinal cannabis:
(1) 
A description of the screening, registration, and validation process for qualified medical cannabis patients and the protocols to verify that: (A) purchasers of medical cannabis products are eighteen years of age or older; and (B) purchasers of adult-use cannabis are twenty-one years of age or older;
(2) 
A description of qualified patient records acquisition and retention procedures;
(3) 
A description of the process for tracking cannabis quantities and inventory controls, including on-site cultivation (if any), processing and cannabis products received from outside sources.
(i) 
Valid cannabis retail license issued by the State of California Department of Cannabis Control depending on the type of retail cannabis operations being proposed.
(j) 
Valid State of California seller's permit.
(k) 
Waste management plan.
(l) 
Fingerprint background checks.
(m) 
An approved security plan meeting the requirements set forth in administrative regulations. To the extent permitted by law, the security plan shall be kept confidential by the City. Applicants are encouraged to provide a redacted copy of the security plan that can be provided in response to a PRA request.
(n) 
Any further information determined by the City to be material to the evaluation of the applicant's fitness to operate.
(Added by Ord. No. 2828CCS, 9/30/2025)
In addition to any information or documents required by the Director, or adopted in administrative regulations issued pursuant to this Chapter, applications for a non-City-based cannabis delivery permit shall include:
(a) 
Business entity information.
(b) 
Owner and officer information.
(c) 
Authorized representative information.
(d) 
An executed release of liability and hold harmless in the form set forth in the City's application form.
(e) 
Valid cannabis retail license issued by the State of California Department of Cannabis Control consistent with the type of retail cannabis operations being proposed.
(f) 
Valid State of California seller's permit.
(g) 
Copy of a valid local permit authorizing the applicant to engage in retail cannabis activity and provide cannabis delivery service.
(h) 
Insurance information as required by this Chapter or applicable administrative regulations.
(Added by Ord. No. 2828CCS, 9/30/2025)
(a) 
The applicant, and any existing or prospective manager, must be at least twenty-one years of age.
(b) 
The applicant, or any existing or prospective manager, must not have had a similar type of license previously revoked or denied for good cause within the immediately preceding two years prior to the license application.
(c) 
The applicant and any proposed manager shall undergo a background investigation. Within ten years, neither the applicant, nor any proposed or prospective manager, shall have been convicted of:
(1) 
Any offense relating to possession, manufacture, sales, or distribution of a controlled substance, with the exception of cannabis related offenses;
(2) 
Any offense involving the use of force or violence upon the person of another;
(3) 
Any offense involving theft, fraud, dishonesty or deceit;
(4) 
Any offense involving sales of cannabis to a minor or use of a minor to distribute cannabis.
For purposes of this subsection (c), a conviction includes a plea or verdict of guilty or a conviction following a plea of nolo contendere. The above criteria are in addition to the provisions in Section 6.04.260 (Revocation, suspension or denial of business license certificate and the applicable regulatory permits) and any applicable provisions of State law.
(d) 
The location of any cannabis retailer shall comply with the location requirements found in, among other things, Chapter 9.31 of this Code.
(e) 
The security plan adequately addresses the required topics.
(f) 
All applicable taxes and fees have been paid.
(g) 
All applicable standards set forth in this Code, administrative regulations, and any other applicable state and local laws have been met.
(Added by Ord. No. 2828CCS, 9/30/2025)
Any cannabis permits issued pursuant to this Chapter shall be effective for the same period as the corresponding business license issued. Before the expiration of any such cannabis permits, a permittee that desires to continue operating in the City must file an application for renewal. The renewal application shall be filed in a manner established by administrative regulations, and such renewal application shall be granted only when the requirements for the issuance of such permit, or other criteria established in administrative regulations, are met.
(Added by Ord. No. 2828CCS, 9/30/2025)
All permittees shall operate in full compliance with all applicable State laws. Nothing in this Ordinance is intended to authorize the operation of any commercial cannabis activity in a manner contrary to applicable State laws.
(Added by Ord. No. 2828CCS, 9/30/2025)
Any cannabis permits may be revoked, suspended, or denied by the Director, or designee, based upon any of the following grounds:
(a) 
The applicant has made a materially false, misleading or fraudulent statement of fact or omission of fact to the City;
(b) 
The applicant operates, has operated, or proposes to operate in a manner that endangers public health or safety;
(c) 
The applicant fails to comply or has failed to comply with any requirement imposed by the provisions of the Code, including any rule, regulation, condition, or standard adopted pursuant to this Chapter, or any term or condition imposed by the cannabis retail permit, or any provision of State law;
(d) 
The applicant, or any of its officers, owners or principals, has been convicted of a criminal offense that is substantially related to the qualifications, functions or duties of the vending profession, including, but not limited to, any criminal conviction involving a violent or serious felony, fraud, deceit, or embezzlement; or
(e) 
Other grounds set forth in the Code or by administrative regulations.
(Added by Ord. No. 2828CCS, 9/30/2025)
All cannabis retail businesses in the City shall operate in conformance with the following operating requirements:
(a) 
Hours of operation shall be limited to: Monday through Sunday, six a.m. to ten p.m., or as further limited by State law.
(b) 
Security shall comply with the following minimum standards and any standards set forth in administrative regulations:
(1) 
Cannabis retail businesses shall provide adequate security and lighting on site to ensure the safety of persons and protect the premises from theft at all times in conformance with the security plan submitted with the cannabis retailer's application.
(2) 
All security guards employed by a cannabis retail business shall wear a uniform, or otherwise be dressed in a manner to be easily identifiable as security guards. Security guards must be licensed and possess a valid Department of Consumer Affairs "Security Guard Card" at all times. A cannabis retailer's security guards shall not possess firearms or tasers.
(3) 
Cannabis retail businesses shall provide a neighborhood security guard patrol for the surrounding area of the business as specified in administrative regulations during all hours of operation.
(c) 
Cannabis retail businesses shall provide law enforcement and all neighbors within one hundred feet of the business with the name and phone number of an on-site community relations employee to notify if there are operational problems with the establishment.
(d) 
Cannabis retail business operator(s) shall attend regular meetings with the Santa Monica Police Department, Santa Monica Fire Department, and other City staff as may be required by the City to review public safety issues associated with their operations.
(e) 
Delivery of cannabis from cannabis retailers to customers in the City and surrounding areas is permitted, in accordance with the operating requirements in this Chapter, including Section 6.200.080, Cannabis delivery operating requirements.
(f) 
Any operating standards set for in administrative regulations established under this Chapter, including, but not limited to, administrative regulations: prohibiting cannabis consumption on the premises or nearby vicinity; prohibiting sale or use of alcohol or tobacco products on the premises; requiring cannabis warnings and signage as established by the City or State law; establishing allowable delivery times and methods for shipments of cannabis or cannabis products into the premises; addressing cannabis sourcing; establishing access to the premises by City staff (including Code Enforcement, Police Department and/or Fire Department) or other agents or employees of the City to determine compliance or address health, safety, or other concerns, minimum employment criteria (including minimum age); setting periodic meetings with City staff to address public safety or other community concerns; establishing odor absorption requirements; prohibiting loitering near the premises; and any other regulation intending to address health, safety, or other community concerns.
(Added by Ord. No. 2828CCS, 9/30/2025)
All deliveries of cannabis and cannabis products shall be done in accordance with the following requirements:
(a) 
Businesses based within the City, including businesses providing storefront cannabis delivery services or businesses providing non-storefront cannabis delivery services, must have a valid City business license and cannabis retailer permit to operate within the City.
(b) 
Businesses providing non-City-based cannabis delivery services, must have a valid City business license and a non-City-based cannabis delivery permit to operate within the City. A business providing non-City-based cannabis delivery services must be able to show compliance with the regulations of the jurisdiction it is licensed by and physically located in.
(c) 
Every business providing cannabis delivery service within the City shall obtain and maintain in full force and effect a commercial automobile insurance policy which provides the minimum coverages required by State, County, or local laws, including administrative regulations, whichever is higher.
(1) 
The permittee shall maintain on file with the Director proof of the insurance required hereunder before any permit under this Chapter, or business license, is issued.
(2) 
If the insurance policies issued to the permittee pursuant to this Chapter are canceled for any reason, any permit issued under this Chapter is automatically suspended. In order to reinstate the permit, the permittee shall file a new certificate of insurance and provide proof of such to the Director.
(d) 
Only delivery to persons twenty-one years of age or over shall be allowed, except deliveries of medicinal cannabis or medicinal cannabis products are permitted to medicinal cannabis patients that are eighteen years of age and older.
(e) 
Any operating standards established in any administrative regulations established under this Chapter, including, but not limited to, administrative regulations: relating to security, operation, maintenance and appearance of vehicles delivering cannabis and cannabis products; establishing the minimum age and other minimum requirements for delivery drivers and anyone accompanying the driver; outlining the maintenance of a ledger of deliveries as established by the City or State law; establishing restrictions on total floor area for storage of cannabis and cannabis products; concerning the operation of non-storefront cannabis delivery retailers; establishing access to the premises by City staff (including Code Enforcement, Police Department and/or Fire Department) or other agents or employees of the City to determine compliance or address health, safety, or other concerns, minimum employment criteria (including minimum age); establishing odor absorption requirements; prohibiting loitering near the premises; and any other regulation intending to address health, safety, or other community concerns.
(Added by Ord. No. 2828CCS, 9/30/2025)
In addition to the operating requirements found in Section 6.200.070 and Section 6.200.080 of this Code, other requirements in this Chapter or the Code, and any applicable administrative regulations, all cannabis retailers which sell medicinal cannabis in the City shall operate in conformance with the following operating requirements:
(a) 
No physician shall be permitted in any cannabis retail business at any time for the purpose of evaluating patients for the issuance of a medicinal cannabis recommendation or medicinal cannabis identification card.
(b) 
Medicinal cannabis shall only be dispensed to qualified patients and their caregivers as defined by State law.
(c) 
Medicinal cannabis patrons shall be notified of the following verbally or through posting of a sign in a conspicuous location readily visible to persons entering the premises:
(1) 
Use of medicinal cannabis shall be limited to the patient identified on a valid doctor's recommendation, or a qualified purchaser identified on a State-issued form of identification.
(2) 
Forgery of medical documents is a felony crime.
(d) 
Medicinal cannabis shall only be provided to an individual in an amount consistent with personal-medical use.
(e) 
Medicinal cannabis patients shall be eighteen years of age or older.
(Added by Ord. No. 2828CCS, 9/30/2025)
(a) 
No person or entity shall dispense, distribute, sell, convey, exchange, or give away cannabis in the City except in compliance with the provisions of this Chapter and Section 9.31.095 of this Code. Dispensing, distributing, selling, conveying, exchanging, or giving away cannabis in the City without a business license is a misdemeanor violation.
(b) 
Violations of this Chapter are also subject to the administrative citation procedure provisions found in Chapter 1.09 of this Code.
(c) 
Nothing in this Chapter shall be interpreted to conflict with State law, including, without limitation, the Compassionate Use Act, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) and the MAUCRSA, as may be amended, and the rights granted to individuals for the adult-use and medical-use of cannabis under State law.
(d) 
Failure of a cannabis business to pay applicable taxes and fees to the City for a three-month period shall be grounds for revocation of the City business license. If a business has failed to pay applicable taxes and fees to the City the City may suspend or revoke the business license and any cannabis permits (as applicable). For delinquent taxes and fees, if a business enters into a payment plan with the City within two months of being notified by the City of failure to pay applicable taxes and/or fees, the grounds for revocation of a business license specified in this section shall not apply to the business, as long as the business remains in compliance with the terms of the payment plan and completes the payment plan.
(Added by Ord. No. 2828CCS, 9/30/2025)
(a) 
The Director or designee may adopt administrative regulations to implement the provisions of this Chapter, including, but not limited to, establishing or revising cannabis retailer operating requirements, cannabis delivery operating requirements, medicinal cannabis retailer operating requirements, periodic inspection protocols and timing, conditions of approval, establishing or revising renewal criteria for any cannabis permits, establishing or revising grounds for revocation, suspension, or denial of any cannabis permits, and any other regulation intending to address health, safety, or other community concerns. From time to time, the Director, or designee, may issue such guidance and promulgate such rules as deemed in its discretion necessary to carry out the provisions of this Ordinance.
(b) 
No cannabis retailer or non-City-based cannabis delivery retailer shall fail to comply with the City's administrative regulations issued pursuant to this Chapter.
(Added by Ord. No. 2828CCS, 9/30/2025)
(a) 
Right to Condition License. The Director, or designee, may impose conditions on any cannabis retailer permit, if:
(1) 
Conditions exist that are specific to the location or business which may reasonably affect the health, safety, or welfare of the patrons or surrounding community.
(2) 
Grounds for denial or revocation of a business license exist, or that the manner in which the business has been conducted, or operated, is detrimental to the public health, safety, and welfare.
(b) 
Application to Change Conditions. The Director may change, modify or eliminate any conditions previously placed on a permit upon written request of the permittee if it finds that the reasons for the original imposition of such conditions have been cured or no longer exist.
(c) 
Appeal of Conditions. A permittee, whose permit has been conditioned pursuant to this section, may appeal the conditions by filing an appeal on a form provided by the Director within fifteen days after the conditions are imposed.
If an appeal relating to cannabis permit conditions is timely filed, the Director, or designee, shall consider the appeal and, if the owner has so requested in his or her appeal form, shall grant the owner an oral hearing, and shall give the owner ten days' notice of the time and place of hearing. The Director, or designee, shall issue a written decision upholding the conditions or modifying or removing the conditions. The written decision of the Director, or designee, following an appeal of a cannabis permit condition shall be the final decision of the City.
(Added by Ord. No. 2828CCS, 9/30/2025)
A cannabis retailer or non-City-based cannabis delivery retailer licensed, permitted, and operating under this Chapter shall at all times have a current, valid State license for any and all activity which requires a State license under State law, including, without limitation, a seller's permit from the State Board of Equalization. The permittee shall post its State license in a conspicuous place. Failure to maintain and post a current, valid State license is grounds for revocation of a business license under this Chapter.
(Added by Ord. No. 2828CCS, 9/30/2025)
Violations of any provision of this Chapter or any applicable administrative regulations shall, in addition to any other remedies contained in this Code, shall be subject to the issuance of administrative citation as set forth in Chapter 1.09 of this Code. Each day or portion thereof during which any violation is committed, continued, or permitted may be deemed a separate offense.
(Added by Ord. No. 2828CCS, 9/30/2025)
The City Council may adopt fees related to cannabis retailer permits, non-City-based cannabis delivery permits, or other fees necessary to implement this Chapter.
(Added by Ord. No. 2828CCS, 9/30/2025)
Except as provided in this Chapter, it shall be unlawful to undertake, establish, operate, maintain, or permit any other commercial cannabis activity in the City. No use permit, business license, variance, building permit, or any other entitlement, license, or permit, whether administrative or discretionary, shall be approved or issued. The possession of a State license for commercial cannabis activity shall not be sufficient to authorize the operation of such a use within the City.
(Added by Ord. No. 2828CCS, 9/30/2025)
(a) 
Transfer of a Cannabis Retailer Permit Prohibited. A cannabis retailer permit is valid only as to the named permittee. No permittee is allowed to transfer its cannabis retailer permit to any person except pursuant to the terms of this Section. Except as permitted, any such transfer or attempted transfer shall be deemed to constitute a voluntary surrender of the cannabis retailer permit and shall thereafter be null and void, except as set forth in this Chapter.
(b) 
Transfer of Less than Majority Ownership. A permittee may transfer less than fifty percent ownership or control of a cannabis retailer permit with prior written approval of the Director, or designee, after submission of all required application materials, payment of applicable fees as established by resolution of City Council, and a determination that the transferee(s) satisfy(ies) the requirements of this Chapter such as to be entitled to the issuance of an original cannabis retailer permit.
(c) 
Change in Name of Business Entity Without any Change in Ownership. A permittee may change the name without applying to the Director, or designee, for a new cannabis retailer permit if the ownership of the renamed business entity is the same as the original business entity. Although a new cannabis retailer permit is not required, the permittee shall notify the City in writing of the change within thirty days of the change, provide any required documentation, and obtain an amendment to the original cannabis retailer permit.
(d) 
Change in Entity Form. A permittee that changes corporate form must obtain all required State licenses and submit a new application to the City for a cannabis retailer permit.
(e) 
Involuntary Transfer. In the event of the death, incapacity, receivership, assignment for the benefit of creditors or other event rendering one or more permittees incapable of performing the duties associated with the cannabis retailer permit, the permittee or permittee's successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the Director, or designee, in writing, within fourteen calendar days of the occurrence of such event. To continue operations or cancel the existing cannabis retailer permit, the permittee's successor in interest shall submit to the Director, or designee, the following:
(1) 
The name of permittee's successor in interest;
(2) 
The name of the permittee(s) for which the successor in interest is succeeding;
(3) 
The phone number, mailing address, and email address of the successor in interest;
(4) 
Documentation demonstrating that the permittee(s) is incapable of performing the duties associated with the cannabis retailer permit, such as a death certificate or a court order, and documentation demonstrating that the person making the request is the permittee's successor in interest such as a court order appointing guardianship, receivership, or a will or trust agreement;
(5) 
The Director, or designee, in their sole and complete discretion, may give the permittee's successor in interest written approval to continue operating the cannabis retail business authorized by the cannabis retailer permit on the premises for a period of time specified by the Director, or designee, provided that the successor in interest shall be subject to all terms and conditions of the cannabis retailer permit, this Chapter, any provision of the State cannabis laws, or any applicable local law or regulations.
(f) 
Cannabis Retail Business Name. No permittee shall operate, conduct, manage, engage in, or carry on the business of a cannabis retailer business under any name other than the name specified in the cannabis retailer permit.
(g) 
Effect of Failure to Comply. Failure to comply with this Section constitutes grounds for suspension or revocation of a cannabis retailer permit.
(h) 
No Extension of Permit. Any change permitted under this Section shall not extend the term of a cannabis retailer permit.
(Added by Ord. No. 2828CCS, 9/30/2025)
To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued any cannabis permits pursuant to this Chapter or otherwise approving the operation of any cannabis retail business. As a condition to the approval of any cannabis permit, the applicant, owner and permittee shall be required to meet all of the following conditions before a cannabis permit is issued:
(a) 
The applicant, owner, and permittee must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant's, owner's and permittee's sole cost and expense), and hold harmless the City, the City Council of Santa Monica, and the City's officers, officials, employees, representatives, and agents 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 a cannabis permit, the City's decision to approve the operation of the cannabis retail business or other retail cannabis activity, the process used by the City in making its decision, or the alleged violation of any Federal, State or local laws by the cannabis retail business's applicant, owner, permittee, or any of their officers, managers, employees or agents.
(b) 
The applicant, owner, and permittee must execute an agreement, in a form approved by the City Attorney, agreeing to reimburse the City for all costs and expenses, including, but not limited to, attorney fees and costs, which the City may be required to pay as a result of any legal challenge related to the City's approval of the applicant's, owner's and permittee's cannabis permit, or related to the City's approval of the applicant's cannabis retailer activity. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.
(Added by Ord. No. 2828CCS, 9/30/2025)
(a) 
Each cannabis retailer 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. At any time upon request of the City with thirty days' notice, each cannabis retailer shall file a sworn statement detailing the cannabis retailer's revenue and number of sales 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 revenues for each month, and all applicable taxes paid or due to be paid. On an annual basis, each cannabis retailer shall submit to the City a financial audit of the business' operations conducted by an independent certified public accountant. Each cannabis retailer shall be subject to a regulatory compliance review and financial audit as determined by the Director, or designee.
(b) 
Each cannabis retailer permittee shall maintain a current register of the names and the contact information (including the address, e-mail address and telephone number) of anyone owning or holding an interest in the cannabis retail business, and separately of all the officers, managers, employees, responsible persons and volunteers currently employed or otherwise engaged by the cannabis retail business. The register required by this subsection shall be provided to the Director, or designee, within thirty days of the City's request.
(c) 
All records collected by a cannabis retailer pursuant to this Chapter shall be maintained for a minimum of four years and shall be made available to the agents or employees of the City within thirty days from the City's request, except that private medical records shall be made available only pursuant to a properly executed search warrant, subpoena, or court order.
(d) 
All cannabis retailers 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 required by State law.
(e) 
Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA) regulations, each cannabis retailer shall allow the City, its agents, or its employees to have access to the business's books, records, accounts, together with any other data or documents relevant to its cannabis retailer 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 thirty days 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.
(Added by Ord. No. 2828CCS, 9/30/2025)
In addition to any other inspection rights authorized in this Chapter or applicable administrative regulations, the Director, or any designated representative, is authorized to enter the business premises of a cannabis retailer during business hours for the purpose of inspecting said premises and determining whether the retailer is in compliance with this Chapter.
(Added by Ord. No. 2828CCS, 9/30/2025)
The City Council may adopt a resolution to establish, modify, or repeal an equity program relating to cannabis retailer permits.
(Added by Ord. No. 2828CCS, 9/30/2025)