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:
"Non-storefront medical cannabis retail"
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.
B. A business registration certificate issued pursuant to chapter
5.04; and
(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:
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,
f.
Their home, business, or mobile telephone number and email address,
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,
k.
If applicable, a copy of any certificate of rehabilitation issued
under
Penal Code § 4852.01 or dismissal issued pursuant
to
Penal Code § 1203.4 or 1203.41,
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);
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, ther
e 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:
a.
A serious or violent felony conviction, as specified in Penal
Code § 667.5(c) or 1192.7(c),
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, th
e 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.
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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.
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(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)