This chapter is intended to provide for the orderly regulation of non-storefront medical cannabis retail establishments in the interest of public health, safety, and welfare.
(Ord. No. 1022, 12/20/2023)
For the purpose of this chapter, the following words and phrases are defined and shall be construed as set out in this section, unless it is apparent from the context that a different meaning was intended:
means a retailer that sells medicinal cannabis or medicinal cannabis products, as those terms are defined in Business and Professions Code § 26001(ak)(1), as may be amended, to customers exclusively through delivery. A non-storefront medical cannabis retail has a permitted premises to store medicinal cannabis or medicinal cannabis for delivery, but the premises is not open to the public. A non-storefront medical cannabis retailer shall have a State License Type M-Type 9, Non-Storefront Retailer, limited to delivery services of medical cannabis or cannabis products only.
(Ord. No. 1022, 12/20/2023)
It is unlawful for any person, firm, partnership, or corporation to engage in, conduct or carry on, or to permit to be engaged in, conducted, or carried on, in or upon any premises within the city, the operation of a non-storefront medical cannabis retail establishment without first having obtained a non-storefront medical cannabis retail regulatory permit, issued by the city pursuant to the provisions herein set forth. Said permit shall immediately be surrendered to the planning director upon suspension, revocation, or expiration of said permit. To engage in non-storefront medical cannabis retail activity allowed by this chapter, a person must also obtain all of the following:
A.
A minor use permit issued pursuant to section 17.16.120. Any permit that is issued under this chapter shall be void if a minor use permit is not issued by the director pursuant to section 17.16.120 of this code, within a year of issuance of the permit. A minor use permit granted pursuant to this chapter and section 17.16.120 shall not be transferable to another person or entity, and any attempted transfer shall be void.
C.
A state license.
(Ord. No. 1022, 12/20/2023)
A.
To protect public health and safety, and to further ensure that non-storefront medical cannabis retail activity permitted by this chapter is in the public interest, the city hereby establishes procedures for determining the qualifications of persons allowed to obtain a permit.
B.
An owner of a non-storefront medical cannabis retail business may apply for a permit, on behalf of a non-storefront medical cannabis retail business, by filing an application with the city manager or their designee. A non-storefront medical cannabis retail business may only submit one application. If a non-storefront medical cannabis retail business has multiple owners, only one owner may submit an application on behalf of the non-storefront medical cannabis retail business, but all owners must be identified in the application.
C.
No person shall knowingly make a false statement of fact or knowingly omit any information that is required in the permit application.
D.
Applications shall not be accepted or processed unless the applicant pays the nonrefundable application fee in the amount to be established by resolution of the city council.
E.
The application shall be on a form approved by the city manager and shall include, without limitation, the following:
1.
A description of the statutory entity or business form that will serve as the legal structure for the non-storefront medical cannabis retail business; a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement; and the name and address of its agent for purposes of service of process;
2.
A list of every fictitious business name the non-storefront medical cannabis retail business is operating under;
3.
The legal name of the applicant;
4.
If applicable, the business trade name ("DBA") of the non-storefront medical cannabis retail business;
5.
A list of the state licenses issued by any California licensing authority to the applicant, or any other owner of the non-storefront medical cannabis retail business, including the date the license was issued, the date the license will terminate and the licensing authority that issued the license;
6.
Whether the applicant, or any owners of the non-storefront medical cannabis retail business, have been denied a state license or have had a state license suspended or revoked by any licensing authority. The applicant shall identify the type of state license applied for, the name of the licensing authority that denied the application, and the date of denial;
7.
The non-storefront medical cannabis retail business' employer identification number;
8.
The physical address of any other premises owned or operated by the applicant involved in commercial cannabis activity operations, or any other owner of the non-storefront medical cannabis retail business, and a brief summary of the business operations at each premises;
9.
A complete list of every owner of, or person with a financial interest in, the non-storefront medical cannabis retail business. Each individual named on this list shall submit the following information:
a.
Their full name,
b.
Their title within the applicant entity, if applicable,
c.
Their date of birth and place of birth,
d.
Their social security number or individual taxpayer identification number,
e.
Their mailing address,
f.
Their home, business, or mobile telephone number and email address,
g.
Their current employer,
h.
Their percentage of ownership interest held in the applicant entity, or other financial interest held in the applicant entity,
i.
Whether the individual has an ownership or a financial interest in any other non-storefront medical cannabis retail business licensed by a state licensing authority,
j.
A copy of the individual's government-issued identification that includes the name, date of birth, physical description and picture of the owner or person with a financial interest in the non-storefront medical cannabis retail business,
l.
If applicable, a detailed description of any suspension or revocation of a cannabis related license or sanctions for unlicensed or unlawful cannabis activity by a state or local governmental agency against the applicant, or any of its owners or persons with a financial interest in the cannabis business, and
m.
Pursuant to California Penal Code §§ 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 owner or person with a financial interest in the cannabis business must submit fingerprints and other information deemed necessary by the police chief, or his or her designee(s), for a background check by the police department. A fee for the cost of the background investigation, which shall be the actual cost to the city to conduct the background investigation as it deems necessary and appropriate, including city staff time and costs, shall be paid at the time the person submits for the background check;
10.
The proposed hours of operation;
11.
Authorization and consent for city staff and the police chief to seek verification of the information contained within the application;
12.
A safety and security plan;
13.
Attestation to the following statement: "Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact, whether intentional or not, is cause for rejection of this application, denial of the permit, or revocation of a permit issued";
14.
Evidence that the non-storefront medical cannabis retail business will be compliant with the location restrictions set forth in Business and Professions Code § 26054(b) and the zoning restrictions set forth in section 17.102.080 of this code;
15.
If the applicant is the landowner upon which the premises is located, a copy of the title or deed to the property;
16.
If the applicant is leasing the premises where the non-storefront medical cannabis retail business will be conducted, a written, notarized statement from the owner of the property where the non-storefront medical cannabis retail business will operate evidencing unqualified consent to the applicant operating a non-storefront medical cannabis retail business on the property. The statement must specify the street address (unless the property is a vacant lot to be developed) and assessor's parcel number for the premises. The statement shall also contain the name, business address, email address and telephone number of the property owner(s) (whether business entity or individual);
17.
A premises diagram; and
18.
Proof of a state license.
F.
Nothing in this section is intended to limit the city manager's ability to request additional information the city manager deems necessary or relevant to determining a non-storefront medical cannabis retail business' suitability for a permit. An applicant shall provide any additional information requested by the city manager no later than seven days after the request, unless otherwise specified by the city manager.
G.
The city manager is hereby authorized to waive any application requirement, as long as the waiver is uniformly applied to all applicants.
(Ord. No. 1022, 12/20/2023)
A permit that is issued pursuant to this chapter is valid for a term of one year from the date of issuance. Renewal terms shall not exceed one year. A permit shall expire one year following its issuance. All non-storefront medical cannabis activity shall cease upon expiration of the permit unless and until the permit is renewed or a new permit is issued. Issuance of a non-storefront medical cannabis retail regulatory permit does not create a land use entitlement.
(Ord. No. 1022, 12/20/2023)
A.
Non-storefront, delivery-only medical cannabis retail operations must obtain and maintain a valid minor use permit pursuant to the provisions in section 17.16.120 and comply with all conditions of approval at all times.
B.
Medical Cannabis, Delivery Only. Non-storefront, delivery-only medical cannabis retail operations licensed pursuant to this chapter may engage only in the sale and delivery of medical cannabis and medical cannabis products to customers and qualified patients and their caregivers.
C.
Fees. All non-storefront, delivery-only medical cannabis retail operations must pay all applicable fees as established by resolution of the city council in order to commence and continue operations.
(Ord. No. 1022, 12/20/2023)
The city, including the police department shall, from time to time and during any hour in which a non-storefront medical cannabis retailer is open for business, make an administrative inspection of each non-storefront medical cannabis retailer for the purpose of determining compliance with this chapter.
(Ord. No. 1022, 12/20/2023)
In addition to any regulations adopted by the city council, the city manager is authorized to establish any additional rules, regulations, and standards governing the issuance, denial, or renewal of non-storefront medical cannabis retail permits, the ongoing operation of non-storefront medical cannabis retail businesses and the city's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this chapter. Regulations promulgated by the city manager shall become effective upon date of publication.
(Ord. No. 1022, 12/20/2023)
A.
As set forth in section 17.102.080, there is a limit on the number of non-storefront medical cannabis retailers that can operate in the city. At no point shall the number of non-storefront medical cannabis retailers in the city exceed the number of retailers allowed under section 17.102.080.
B.
City staff shall establish and conduct a lottery for determining which non-storefront medical cannabis retailer will (1) be issued a permit and (2) be eligible to apply for a minor use permit pursuant to the provisions of sections 17.16.120 and 17.102.080 of this code.
C.
The city manager is authorized to establish the procedures that will be followed in conducting the lottery, and the steps to be included in a schedule that will be prepared for the receipt and review of permit applications for retailers. The city manager is further authorized to make any necessary changes to the lottery procedures and steps to be included in the schedule as they deem appropriate for its implementation.
(Ord. No. 1022, 12/20/2023)
A.
The city manager, in consultation with the police chief, shall evaluate all completed non-storefront medical cannabis retailer applications that are submitted by the application deadline and determine whether the applicant can participate in the lottery. The applicant shall be ineligible to participate in the lottery if the city manager determines that one or more of the following conditions exist:
1.
The applicant has not paid all fees required for consideration of the application;
2.
The application is incomplete, filed late, or is otherwise not responsive to the requirements of this chapter;
3.
The application contains a false or misleading statement or omission of a material fact;
4.
The applicant, or any owner or person with a financial interest in the nonstorefront medical cannabis retail business, is not at least 21 years old;
5.
The applicant, or any owner or person with a financial interest in the non-storefront medical cannabis retail business, has been denied a license or other authorization to engage in commercial cannabis activity by a state licensing or permitting authority, for any reason other than the fact that the applicant was not selected for a limited number of licenses or permits, but would have otherwise qualified to obtain the license or permit;
6.
The applicant, or any owner or person with a financial interest in the non-storefront medical cannabis retail business, is employed by the police department or the city's community development department;
7.
The applicant, or any owners or persons with a financial interest in the non-storefront medical cannabis retailer, has been convicted of:
b.
A felony conviction involving fraud, deceit, or embezzlement,
c.
A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor;
9.
The applicant, or any owners or persons with a financial interest in the non-storefront medical cannabis retailer, has had a judgment entered against them for unpermitted commercial cannabis activity in violation of any city zoning ordinance enacted under zoning law;
10.
The operation of the non-storefront medical cannabis retailer, as described in its application, would fail to comply with any provision of this code, or any state law or regulation; and/or
11.
Operation of the non-storefront medical cannabis retailer in the manner proposed poses a threat to the public health, safety or welfare, or violates any provision of this chapter.
B.
If none of the above-referenced conditions exist, the city manager, or their designee, shall notify the applicant that the applicant is eligible to participate in the lottery. If any of the above-referenced conditions exist, the city manager shall notify the applicant that the applicant has been denied the opportunity to participate in the lottery. Any notice of denial shall set forth the reasons of denial and advise the applicant of the right to contest the denial pursuant to the procedures set forth in section 5.20.110.
C.
If a non-storefront medical cannabis retailer is selected in the lottery to obtain a permit, the retailer shall have 90 days from the date of the notice to the retailer that they are eligible to obtain a permit to provide documentation to the city manager showing the following:
1.
If the applicant is leasing the premises where the non-storefront medical cannabis retail business will be conducted, a copy of the rental or lease agreement shall be provided;
2.
A copy of the applicant's application with the State Department of Cannabis Control to operate a non-storefront medical cannabis retailer in the city;
3.
Evidence that the non-storefront medical cannabis retailer will be compliant with the location restrictions set forth in Business and Professions Code § 26054(b) and the zoning restrictions set forth in section 17.102.080 of this code. Any evidence that was submitted at the time of the application shall be updated to ensure that the retailer is still compliant with this provision; and
4.
Background check results for all employees, managers, and agents of the non-storefront medical cannabis retail business. Any employee, manager, or agent of the non-storefront medical cannabis retail business that has been convicted of a disqualifying crime, shall not be permitted to work for the non-storefront medical cannabis retail business, without first obtaining a waiver from the city manager, after consultation with the police chief.
D.
If the non-storefront medical cannabis retailer fails to provide the information set forth in subsection C above within the 90-day period or does not meet the location or zoning restrictions set forth in section 17.102.080, the non-storefront medical cannabis retailer shall not be issued a permit.
E.
The facility approved by the initial permit shall be open for business within six months from the date when both the minor use permit, if applicable, and the non-storefront medical cannabis retailer regulatory permit have been approved unless a different opening date is described in the conditions of approval for the permit or the city manager, for good cause, grants in writing an extension of the opening date prior to opening date.
(Ord. No. 1022, 12/20/2023)
A.
Lottery Appeals. If a non-storefront medical cannabis retailer applicant is denied the opportunity to participate in the lottery due to the applicant's failure to submit a complete application by the required deadline, failure to satisfy the criteria for issuance of a permit, or for any other reason, the applicant may appeal this decision in writing. The written appeal shall be filed with the city clerk within 10 days of the issuance and mailing of the written decision by the city manager on the application accompanied by the appeal fee as adopted by resolution of the city council. The appeal shall be conducted in accordance with subsection C. After the deadline to appeal has passed, the decision to deny the non-storefront medical cannabis retailer the opportunity to participate in the lottery shall be deemed final and may no longer be appealed. In the event an appeal of the city manager's decision to allow a non-storefront medical cannabis retailer applicant to participate in a lottery is timely filed, the lottery shall not be conducted until the appeal is heard and decided.
B.
Appeals related to issuance of non-storefront medical cannabis retailer regulatory permit. An applicant that seeks to operate a non-storefront medical cannabis retail business in the city, may appeal the city manager's decision not to issue the cannabis business a permit in writing pursuant to the provisions of subsection C. The written appeal shall be filed with the city clerk within 15 days of the issuance and mailing of the written decision by the city manager on the permit accompanied by the appeal fee as adopted by resolution of the city council. After the deadline to appeal has passed, the decision to deny the issuance of a permit shall be deemed final and may no longer be appealed. A non-storefront medical cannabis retailer may only appeal the city manager's decision to deny the applicant a permit if the non-storefront medical cannabis retailer participated in the lottery.
C.
A written request for an appeal under this section shall be filed with the city clerk pursuant to the deadlines noted above and all such requests shall contain the following information:
1.
The name and address of the applicant;
2.
The date of the decision in question;
3.
The reasons for the appeal; and
4.
The grounds relied upon for relief.
Notice of the time and place of the hearing shall be mailed to the applicant, by certified mail, no later than 10 days prior to the date set for the hearing. The notice may also designate certain records that the applicant is required to produce at the time of the hearing. |
At the hearing as prescribed by this section, the applicant and the city may submit any and all evidence as they believe to be relevant. The city council may require the presentation of additional evidence from either the applicant or the city, or from both, and may continue the hearing from time to time for the purpose of allowing the presentation of additional evidence. Upon conclusion of the hearing, the city council may, by resolution with findings, approve, reverse, or modify the decision of the city manager and such decision of the city council shall be final. |
(Ord. No. 1022, 12/20/2023)
A.
To the fullest extent permitted by law, the city does not assume any liability whatsoever, with respect to approving any permit pursuant to this chapter or the operation of any non-storefront medical cannabis retailer approved under to this chapter.
B.
As a condition of approval of a permit as provided in this chapter, the applicant or its legal representative shall do the following:
1.
Execute an agreement indemnifying the city from any claims, damages, injuries, or liabilities of any kind associated with the operation of the non-storefront medical cannabis retail business, issuance of a permit to a non-storefront medical cannabis retail business, or the prosecution of the non-storefront medical cannabis retail business or its owners, managers, directors, officers, employees, or its qualified patients or primary caregivers for violation of federal or state laws;
2.
Maintain insurance in the amounts and of the types that are acceptable to the city manager or designee; and
3.
Reimburse the city for all costs and expenses, including, without limitation, legal fees and costs and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of a minor use permit or non-storefront medical cannabis retail regulatory permit or related to the city's approval of non-storefront medical cannabis retail activity. The city, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve the applicant of any of the obligations imposed hereunder.
(Ord. No. 1022, 12/20/2023)
A.
It is the duty of the city manager, planning director, police chief, or their designees, to enforce the rules and regulations in accordance with this chapter.
B.
Pursuant to the city's prosecutorial discretion, the city may enforce violations of the provisions of this chapter as criminal, civil, and/or administrative actions.
C.
Any person who violates the provisions of this chapter may be subject to administrative fines in an amount not to exceed $1,000.00, or such other amount as may be permitted under California Government Code § 36901. In addition to the recovery of administrative fines, the city may recover its costs and expenses incurred in enforcing a violation of this chapter. An order to pay administrative fines and costs may be appealed pursuant to section 1.12.210 of this code.
D.
Notwithstanding any other provision of this chapter, a non-storefront medical cannabis retail permit may not be issued, renewed, or amended unless and until due and unpaid citations are paid in full.
(Ord. No. 1022, 12/20/2023)
A.
Any use or condition caused or permitted to exist in violation of any of the provisions of this chapter shall be and is hereby declared a public nuisance.
B.
The violation of any provision of this chapter shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of the city, create a cause for injunctive relief.
C.
Any person subject to this chapter who personally, or through an agent, employee, independent contractor, or other representative, violates any provision of this chapter shall be guilty of a separate offense for each and every day during any portion of which any such violation is committed, continued, or permitted by such person. All remedies provided herein shall be cumulative and not exclusive.
(Ord. No. 1022, 12/20/2023)