Chapter 17.03 COMMERCIAL CANNABIS ACTIVITY

Commercial cannabis activity shall be authorized in the city of King only as expressly provided in this chapter and if not expressly authorized by this chapter shall be prohibited.

Authorized Commercial Cannabis Activities. Commercial cannabis operations within the city, which comprise the activities of indoor cultivation, mixed-light cultivation, nursery cultivation, retailer (storefront and/or non-storefront delivery), manufacturer, testing laboratory, distributor, and microbusiness are allowed subject to issuance and maintenance of the permits and entitlements set forth in this chapter and all other applicable city and state laws and regulations, and issuance and maintenance of a valid and current state license of a classification listed below, as provided for in Business and Professions Code Section 26050 and applicable state regulations:

Type 1A = Cultivation; Specialty Indoor; Small.

Type 1B = Cultivation; Specialty Mixed-Light; Small.

Type 2A = Cultivation; Indoor; Small.

Type 2B = Cultivation; Mixed-Light; Small.

Type 3A = Cultivation; Indoor; Medium.

Type 3B = Cultivation; Mixed-Light; Medium.

Type 4 = Cultivation; Nursery.

Upon authorization by the state of California, Type 5A = Cultivation; Indoor; Large.

Upon authorization by the state of California, Type 5B = Cultivation; Mixed-Light; Large.

Type 6 = Manufacturer 1.

(11)

Type 7 = Manufacturer 2.

(12)

Type N = Manufacturer (i.e. no extractions, pursuant to 17 CCR Section 40118, as may be amended).

(13)

Type P = Manufacturer (i.e. packaging and labeling only, pursuant to 17 CCR Section 40118, as may be amended).

(14)

Type 8 = Testing Laboratory.

(15)

As authorized by Code of Regulations, Type 9 = Non-Storefront Retailer (i.e. nonstorefront delivery, pursuant to 16 CCR Section 5414, as may be amended).

(16)

Type 10 = Storefront and/or Non-Storefront Retailer.

(17)

Type 11 = Distributor.

(18)

Type 12 = Microbusiness.

(19)

Type 13 = Distributor (i.e. transport only, pursuant to 16 CCR Section 5315, as may be amended).

(20)

Cultivation - Only harvesting, drying, curing, grading, or trimming of cannabis.

The establishment, development, construction, maintenance, or operation of a non-storefront dispensary shall only be authorized in the M-1, M-2 and M-3 zones and/or the East Ranch Business Park Specific Plan area within the city. The establishment, development, construction, maintenance, or operation of a storefront dispensary shall only be authorized in the highway service area west of the freeway (excluding properties located on Canal Street), the C2 zone, and the First Street corridor and highway service zoned areas on First Street from Ellis Street to Highway 101. As such, the establishment, development, construction, maintenance, or operation of a storefront and/or non-storefront dispensary shall be prohibited in all other zones and/or areas within the city. Further, storefront dispensaries shall be prohibited from being located directly adjacent to any residential zoned single-family or multifamily property. The terms “directly adjacent” mean sharing a property line border with the proposed storefront dispensary property. Nothing in this subsection shall be interpreted to authorize the establishment, development, construction, maintenance, or operation of a storefront and/or non-storefront dispensary in violations of the requirements of Health and Safety Code Section 11362.768, Code of Regulations Section 5026 and any other similar statue, law and/or regulation enacted by the city or state of California or one of its departments charged with regulating cannabis activities.

Prohibited Types of Commercial Cannabis Businesses. Commercial cannabis businesses within the city which involve the activities of outdoor cultivation of cannabis are prohibited in the city. Further, this prohibition includes, but is not limited to, commercial cannabis activities licensed by the state license classifications listed below, as provided for in Business and Professions Section 26050 and applicable state regulations:

Type 1= Cultivation; Specialty Outdoor; Small.

Type 1C = Cultivation; Specialty Cottage; Small.

Type 2 = Cultivation; Outdoor; Small.

Type 3= Cultivation; Outdoor; Medium.

Type 5 = Cultivation; Outdoor; Large.

Except as otherwise expressly provided in this chapter, the prohibitions of this subsection includes any similar commercial cannabis activities authorized under new or revised state licenses, or any other state authorization, for any type, category, or classification of commercial cannabis activities which involve the above-referenced or similar activities or operations.

The establishment, development, construction, maintenance, or operation of a storefront cannabis cooperative and/or collective are hereby prohibited, and is not an authorized or conditionally permitted use in any zoning district within the city, even if located within an otherwise permitted use. No person shall establish, develop, construct, maintain, or operate a storefront cannabis cooperative and/or collective and no application for a building permit, use permit, variance, or any other entitlement authorizing the establishment, development, construction, maintenance, or operation of any storefront cannabis cooperative and/or collective shall be approved by any officer or employee of the city. A violation of this section is declared to be a public nuisance and punishable pursuant to the provisions of the King City Municipal Code.

The sale, delivery, gift, trade, barter or making available of cannabis or cannabis products by two or more persons shall be prohibited in all zoning districts of the city, unless conducted in compliance with the requirements of this chapter and the King City Municipal Code.

In addition to those other requirements which may be imposed pursuant to this chapter, no person shall establish, develop, construct, maintain, or operate a commercial cannabis activity and/or open a commercial cannabis business without possessing both a commercial cannabis permit issued by the city and within one year of the ability to obtain a license, a license issued by the state of California or one of its departments or divisions.

The city manager is hereby authorized to issue commercial cannabis permits on behalf of the city. The city manager, in their sole discretion, may issue a commercial cannabis permit pursuant to the mandatory requirements of this chapter and the King City Municipal Code as may be repealed or amended by the city council from time to time.

A commercial cannabis permit shall be governed by the following requirements and/or limitations:

There shall be no more than two commercial cannabis permits issued by the city authorizing the store-front retail sale of cannabis and/or cannabis products.

Excluding storefront dispensaries, repair, maintenance and delivery services, there shall be no public access to the commercial cannabis business.

It shall be unlawful to employ or grant access to any individual under twenty-one years of age, or another age as set by state law.

Each commercial cannabis permit issued pursuant to this chapter shall expire twelve months after the date of its issuance.

An application for renewal of a commercial cannabis permit shall be filed with the city manager at least sixty calendar days prior to the expiration date of the permit.

An application for renewal of a commercial cannabis permit shall be denied if any of the following exists:

The application for renewal of the commercial cannabis permit is filed less than sixty calendar days before its expiration. Notwithstanding the requirements of this subsection, upon timely filing of a request for waiver and showing of good cause by the applicant, the city manager in his/her sole discretion may wave this requirement and grant an extension of time to file a renewal application for a commercial cannabis permit. The extension of time granted by the city manager shall not exceed sixty days. The applicant shall file the request for a waiver and extension of time with the city manager at least fifteen days prior to the expiration of the commercial cannabis permit. The time period to file a request for a waiver and extension of time shall be jurisdictional and cannot be waived. A request for a waiver and extension of time not timely filed is defective and shall be denied.

The commercial cannabis permit is suspended or revoked at the time the application for renewal is submitted or suspended or revoked while the application for renewal is pending.

The commercial cannabis business or activity has not been in regular and continuous operation during the four months prior to the submission of the application for renewal. Notwithstanding the requirements of this subsection, the city manager in his/her sole discretion may wave this requirement upon showing of good cause by the applicant.

The commercial cannabis business or activity fails to conform to the requirements of this chapter, any provision of the King City Municipal Code, any condition(s) imposed as part of a conditional use permit, and/or zoning requirement.

The applicant for renewal of the commercial cannabis permit fails to renew its state of California license.

The applicant for renewal has failed to pay in full any fees, administrative citation fines, penalties and/or costs issued by the city relating to the commercial cannabis business and/or activity, unless assessment of the fees, administrative citation fines, penalties and/or costs are being appealed.

If a renewal application is denied, the applicant may file an appeal. The appeal must be in writing, identify the grounds for reversing the denial and be submitted to the city clerk within ten days from the date of the denial. The appeal shall be conducted as established within this chapter and/or the King City Municipal Code. In the alternative, the applicant may file a wholly new application for a commercial cannabis permit as established within this chapter. Upon expiration of the commercial cannabis permit and regardless of a pending appeal or new application for a commercial cannabis permit, all applicant’s commercial cannabis activity shall immediately cease. Violations of this section shall be subject to denial of the appeal or new application for a commercial cannabis permit and/or the enforcement, penalties and cost recovery proscribed within this chapter and/or the King City Municipal Code.

An applicant seeking multiple licenses for different types of commercial cannabis activity shall be required to comply with the multiple licensing restrictions contained within Business and Professions Code Section 19328. An applicant may hold multiple city issued commercial cannabis permit types, consistent with the requirements of Business and Professions Code Section 26053 and a state of California Type 12 “Microbusiness” license. An applicant who holds a city issued testing permit and/or state of California issued testing license shall not hold any other city issued commercial cannabis permits. Further, the applicant shall apply and receive a city issued permit for each type of commercial cannabis activity prior to engaging in the commercial cannabis activity.

Any unpaid fees, administrative citation fines, penalties and/or costs issued by the city relating to the commercial cannabis business and/or activity shall be added to the fee for renewal of the commercial cannabis permit, unless assessment of the fees, administrative citation fines, penalties and/or costs are being appealed.

A commercial cannabis permit shall not be renewed until the city receives payment in full of the renewal fee.

Issuance of a commercial cannabis storefront dispensary permit shall be governed by the following requirements and/or limitations:

All commercial cannabis storefront dispensaries shall be prohibited except within the following designated area(s): the highway service area west of the freeway (excluding properties located on Canal Street), the C2 zone, and the First Street corridor and highway service zoned areas on First Street from Ellis Street to Highway 101. Further, storefront dispensaries shall be prohibited from being located directly adjacent to any residential zoned single-family or multifamily property. The terms "directly adjacent" mean sharing a property line border with the proposed storefront dispensary property. Only pre-applications that can demonstrate the applicant currently owns, leases or has an option to buy or lease the property proposed for the business within an area authorized for a commercial cannabis storefront dispensary shall be considered.

Pre-applications shall be accepted at City Hall during normal business hours.

The applicant shall submit within their pre-application detailed materials establishing:

Proposed Dispensary Site and Neighborhood Compatibility Plan.

Business and Operations Plan.

Qualifications and Experience of Principals.

Operations and Security Plan.

Labor and Employment Plan.

Improvement Plan and Schedule.

The pre-application for a commercial cannabis storefront dispensary permit shall be reviewed by city and determined to be eligible based upon meeting the following criteria:

The site of the proposed dispensary must be available, consistent with all city zoning and land use restrictions, suitable for the proposed use, and potential neighborhood and community impacts shall be minimized through building and site orientation and improvements (including, but not limited to, signage, traffic, parking, lighting, appearance of building, prevention of access to minors, waste, odor and noise).

The business plan must demonstrate the business is economically viable.

Principals must demonstrate a prior history of positive sales and maintenance of a retail cannabis business, legal compliance, and positive community relations.

A comprehensive operations and security plan for the proposed dispensary shall address, but not be limited to, the non-diversion of cannabis and/or cannabis products, on-site security technology, and in-house and contract security personnel.

The business shall promote employment opportunities for city of King residents through actions proposed to hire, train and promote local employees.

The proposed facility must include improvements to the interior and exterior of the structure and property of the proposed dispensary to create an attractive and professional business appearance, including, but not limited to, new flooring, display cases, interior and exterior paint or wall coverings, and signage.

Pre-applications not meeting all of the criteria will be deemed incomplete. If more pre-applications are received than available permits, once one pre-application is deemed complete, the other pre-applications will be provided fifteen calendar days to be deemed complete prior to approving any of the pre-applications. If at the end of the fifteen calendar days, more pre-applications are deemed complete than available permits, the pre-applications for the number of permits available will be selected to continue with the permitting process through a lottery.

The applicant or applicants selected during the lottery process may receive a commercial cannabis storefront dispensary operations permit, provided each applicant individually meets all applicable requirements of this chapter, the King City Municipal Code and/or state and federal law and obtains all other required permits and approvals. Further, each selected applicant shall submit an application for a commercial cannabis storefront dispensary operations permit which complies with the requirements of this chapter.

The applicant shall comply with all requirements of the King City Municipal Code and state of California statute, regulation and/or guideline governing commercial cannabis businesses and/or storefront dispensaries.

A selected storefront dispensary permit applicant shall obtain a city issued conditional use permit and all applicable building permits within nine months of successfully completing the pre-application process as set forth in this chapter; failure to meet the nine month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary. Further, a selected storefront dispensary permit applicant shall obtain a city cannabis storefront dispensary operations permit and commence operations at the storefront dispensary within eighteen months of successfully completing the pre-application process as set forth in this chapter; failure to meet the eighteen-month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary. Termination of a pre-application approval and authorization, cannabis permit application and/or cannabis permit pursuant to this section shall not be subject to appeal. Nothing in this section shall prevent or prohibit a selected applicant whose preapplication approval and authorization, cannabis permit application and/or cannabis permit has been terminated from re-applying to a future pre-application process.

Within six months of the city issuing an applicant a commercial cannabis storefront dispensary permit, the permittee shall secure a license from the state of California to operate a cannabis storefront dispensary and provide a copy of the license to the city manager or his/her designee. Upon written request by the permittee and a showing of good cause, the city manager or his/her designee, in their sole discretion, may grant no more than one extension of time. The extension of time shall not exceed six months. Failure to secure a state of California license to operate a cannabis storefront dispensary or to provide a copy of a state of California license to operate a cannabis storefront dispensary to the city manager or designee shall void the city issued commercial cannabis storefront dispensary permit. After receiving notice from the city of the expiration of the time period to secure a license, the permittee shall immediately cease any commercial cannabis operations at the storefront dispensary.

A selected storefront dispensary permit applicant shall obtain a city issued conditional use permit and all applicable building permits within nine months of successfully completing the pre-application process as set forth in this chapter; failure to meet the nine month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary. Further, a selected storefront dispensary permit applicant shall commence operations at the storefront dispensary within eighteen months of successfully completing the pre-application process as set forth in this chapter; failure to meet the eighteen-month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary. Termination of a pre-application approval and authorization, cannabis permit application and/or cannabis permit pursuant to this section shall not be subject to appeal. Nothing in this section shall prevent or prohibit a selected applicant whose preapplication approval and authorization, cannabis permit application and/or cannabis permit has been terminated from re-applying to a future pre-application process. Current selected storefront dispensary permit applicants shall have twelve months from the enactment of this amendment by the city council to commence operations of their storefront dispensary; failure to commence operations of their storefront dispensary within the twelve-month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary.

§ 17.03.050 Existing commercial cannabis businesses.

Prior to commencing operation, a commercial cannabis business shall obtain a city of King business license and comply with all applicable provisions and requirements of that license.

(j)

Prior to commencing operation, a commercial cannabis business shall be subject to a mandatory building inspection and must obtain all required permits or approvals which would otherwise be required, including, but not limited to, building permit(s), fire code permit(s), and planning-level permit(s) required by Title 17 Zoning of the King City Municipal Code.

(k)

Consistent with the requirements of Business and Professions Code Section 26053, a commercial cannabis business conducting multiple commercial cannabis activities shall obtain a city issued permit for each type of commercial cannabis activity prior to engaging in that activity. A commercial cannabis business which holds a city issued testing permit shall not hold any other city issued commercial cannabis permits. In addition, a commercial cannabis business authorized to conduct multiple commercial cannabis activities, consistent with the requirements of Business and Professions Code Section 26053, shall not receive a city issued permit authorizing the establishment, development, construction, maintenance, or operation of a cannabis cooperative and/or collective within the city.

(l)

Revocation, termination, denial, non-issuance or suspension of a license issued by the state of California, or any of its departments or divisions, shall immediately terminate the commercial cannabis permit and all commercial cannabis activity shall immediately cease. Upon reinstatement or receipt of a new license from the state of California, or any of its departments or divisions, the commercial cannabis activity may file for a new permit from the city. While a new application for a commercial cannabis permit is pending, applicant shall not engage in any commercial cannabis activity. Violations of this section shall be subject to denial of the application for a commercial cannabis permit and/or the enforcement, penalties and cost recovery proscribed within this chapter and/or the King City Municipal Code.

(m)

Each commercial cannabis business operating within the city of King shall pay all applicable city taxes and permitting and licensing fees. Further each commercial cannabis business operating within the city of King shall pay all applicable state and federal taxes and permitting and licensing fees.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017; Ord. 763 § 3, 2018; Ord. 767 § 3, 2018; Ord. 773 § 3, 2019; Ord. 786 § 3, 2020; Ord. 797 § 5, 2020; Ord. 816 § 3, 2023; Ord. 827, 5/28/2024)

Currently operating commercial cannabis businesses shall apply for a commercial cannabis permit pursuant to this chapter and otherwise meet all other conditions and requirements of this chapter imposed on newly established commercial cannabis businesses. Any facility or entity that can demonstrate to the city’s satisfaction that it is in good standing and otherwise in compliance with all applicable local and state laws and regulations promulgated thereunder may be permitted to continue current operations while its application for a commercial cannabis permit and license issued by the state of California, or its departments or divisions, are pending.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.060 Security measures.

The city manager is authorized to promulgate additional regulations necessary to implement the requirements and fulfill the policies of this chapter related to commercial cannabis activities.

A permitted commercial cannabis business, regardless of building type utilized, shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the city manager, these security measures shall include, but shall not be limited to, all of the following:

Preventing both non-employees and employees from remaining on the premises of the commercial cannabis business if they are not engaging in the activity expressly related to the operations of the commercial cannabis business.

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

Except for live growing plants which are being cultivated at a cultivation facility, all cannabis and cannabis products shall be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products, including live plants which are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.

Installing twenty-four-hour security surveillance cameras with night vision capability and of at least HD-quality to monitor all entrances and exits to and from the premises and to monitor all interior spaces, excluding all restroom and changing room facilities, within the commercial cannabis business. The security surveillance system shall be compatible with software and hardware utilized by the King City police department. The security surveillance system shall be capable of providing the King City police department with remote real-time/live access to the video footage during emergency situations, including but not limited to armed robbery, active shooter, hostage, and exposure to hazardous or volatile substances. Video recordings shall be maintained for a minimum of forty-five days. Upon request by the chief of police, video recordings will provided to the King City police department within twenty-four hours. If the commercial cannabis business refuses to provide the chief of police access to the real-time/live video feed or the requested video recordings, the city attorney shall be authorized to seek reimbursement of all costs, including, but not limited to, court costs, attorney’s fees, filing fees, administrative time and fees and employee time, incurred by the city while seeking a warrant and/or judicial intervention granting the requested access. The requirements of this section shall be in addition to any other provision provided for within the King City Municipal Code.

Sensors shall be installed to detect entry and exit from all secure areas.

Panic buttons shall be installed in all commercial cannabis businesses.

A professionally installed, maintained, and monitored alarm system.

Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building and installed in compliance with all applicable requirements of the King City Municipal Code, California Building Code and California Fire Code.

Security personnel hired by the commercial cannabis business shall be certified by the state of California and submit to and pass a background check conducted by the city manager, including, but not limited to, finger print analysis utilizing the California Department of Justice LiveScan system. In the alternative, the security personnel or commercial cannabis permit holder may provide the city manager with a completed background check performed by a third party vendor approved by the city.

Each commercial cannabis business shall have the capability to remain secure and operational 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.

Each commercial cannabis business shall provide the city manager with the identity and contact information for a liaison who shall be reasonably available to meet and discuss compliance with the requirements of the King City Municipal Code, state law and/or any other regulations relating to the commercial cannabis activity.

As part of the application and permitting process, each commercial cannabis business shall provide the city manager with a detailed transportation plan describing the procedures for safely and securely transporting cannabis, cannabis products and/or currency.

A commercial cannabis business shall notify the chief of police within twenty-four hours after discovering any of the following:

Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city manager.

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

The loss or unauthorized alteration of records referring or related to cannabis, cannabis products, employees or agents of the commercial cannabis business.

§ 17.03.080 Right to occupy and to use property.

Any other breach of security.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017; Ord. 763 § 3, 2018)

§ 17.03.070 (Reserved)

Repealed by Ord. 842, 4/14/2026.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017; Ord. 763 § 3, 2018; Ord. 786 § 3, 2020)

As a condition precedent to the city’s issuance of a commercial cannabis 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 is leased from another person, the applicant for a permit under this chapter shall provide a signed and notarized statement from the owner of the property to demonstrate the property owner has acknowledged and has consented to the operation of a commercial cannabis business on the property.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.090 Location of commercial cannabis business—Proximity to sensitive uses.

No commercial cannabis business may operate within any wholly residential area or district of the city or adjacent to a residential area or district if, in the opinion of city manager, the operation of a commercial cannabis business in such location would tend to cause a public nuisance or a situation which may result in repeated police department response or a negative impact on the adjacent residential units.

Commercial cannabis businesses shall be required to comply with all zoning, land use, and development regulations applicable to the underlying zoning district in which they are permitted to establish and operate as set forth in Title 17 of the King City Municipal Code.

§ 17.03.100 Restriction on alcohol sales.

Any commercial cannabis business which has been determined by the city manager to be an existing commercial cannabis business on the effective date of the ordinance codified in this chapter shall be exempt from compliance with the limitations proscribed in this section, unless such location is otherwise determined to constitute a public nuisance or otherwise a disturbance to the adjacent or neighboring uses as determined by the provisions of this chapter.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

No person shall cause or allow the sale, dispensing, or consumption of alcoholic beverages on or about the premises of any commercial cannabis business. No commercial cannabis business may operate at the same location as an alcohol-related use as that term is defined in the King City Municipal Code.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017)

§ 17.03.110 Concurrent regulation with state.

It is the stated intent of this chapter to regulate commercial cannabis activity in the city of King concurrently with the state of California.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.120 Compliance with laws.

It is the responsibility of the commercial cannabis permit holder, owners and operators of the commercial cannabis business to ensure that it is, at all times, 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 which violate state law or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the commercial cannabis permit holder, 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, any subsequently enacted ordinance, resolution, 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 permit. Nothing in this chapter shall be construed as authorizing any actions which violate state law with regard to the operation of a commercial cannabis business. Further, nothing in this chapter shall be construed as the city, city council (individually or collectively), city employees (individually or collectively) and/or consultants authorizing any violation of federal law.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.130 Inspection and enforcement.

The city manager, upon twenty-four-hour notice, may enter the location of a commercial cannabis business at any time during the regular hours of operation and inspect the location of any commercial cannabis business.

The city manager, upon twenty-four-hour notice, may enter the location of a commercial cannabis business at any time during the regular hours of operation to obtain samples of the cannabis to test for law enforcement and/or public safety purposes. Any samples obtained by the city manager shall be logged, recorded, and maintained in accordance with the King City police department standards for evidence.

If, after twenty-four-hour notice is provided, the commercial cannabis permit holder or anyone acting on their behalf refuses to allow the city manager to enter the commercial cannabis business to conduct an inspection and/or collect samples, the city is authorized to seek a warrant or judicial intervention to grant the requested access. Further, the city is authorized to seek reimbursement from the commercial cannabis permit holder and/or the commercial cannabis business for all costs, including but not limited to court costs, attorney’s fees, filing fees, administrative time and fees and employee time, incurred while obtaining a warrant and/or judicial intervention granting the requested access and for the return inspection. The requirements of this section shall be in addition to any other provision provided for within the King City Municipal Code.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.140 Fees and charges.

No person may commence or continue any commercial cannabis activity in the city without timely paying in full all fees, costs, penalties and charges associated with 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.

All commercial cannabis businesses operating pursuant to this chapter shall pay any and all applicable sales, use, business or other taxes, and all license, registration, or other fees required pursuant to federal, state, and local law.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.150 Violation and enforcement.

Any person that 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 person commits, continues, permits, or causes a violation thereof, and shall be penalized pursuant to this chapter and/or the provisions of the King City Municipal Code.

Each and every violation of this chapter shall constitute a separate violation and shall be penalized pursuant to this chapter and/or the provisions of the King City Municipal Code.

Any person who violates, causes, continues or permits another to violate the provisions of this chapter commits a misdemeanor and shall be punishable in accordance with Chapter 1.04.010 of the King City Municipal Code. The city may also pursue all applicable civil and administrative remedies, including, but not limited to, injunctive relief and administrative citations. Should a court of competent jurisdiction subsequently determine that the misdemeanor criminal penalty provision renders the provisions of this chapter, or the provisions of any chapter adopted by reference within the King City Municipal Code unlawful, the city intends that the misdemeanor provision be severable from the remaining penalty provisions and the city will only pursue criminal infraction penalties and/or non-criminal remedies for violations of this chapter.

Each and every violation of the provisions of this chapter is hereby deemed unlawful and a public nuisance which may be abated by the city pursuant to the King City Municipal Code.

The administrative citation penalty for all violations of this chapter, within a rolling twelve month period shall be as follows: one thousand dollars per violation.

In addition to any other remedy or enforcement mechanism provided within this chapter or any other provision of the King City Municipal Code, the city may commence a civil action seeking any other relief or remedy available at law or in equity.

The provisions of this chapter are complimentary, cumulative, supplementary, and additional to any other legal remedies available, whether found in the King City Municipal Code, state or federal laws, regulations, or case law.

The city manager may suspend or revoke a commercial cannabis permit when the permit holder or anyone acting on their behalf has committed any of the following acts:

Any action which would be grounds for denial of an commercial cannabis permit.

Any violation of this chapter, the King City Municipal Code, or any other applicable state or federal law governing the commercial cannabis business or activity.

Prior to suspending or revoking a commercial cannabis permit, the city manager shall conduct a hearing. Written notice of the hearing shall be provided to the permit holder at least five calendar days prior to the hearing. The notice shall contain the basis for suspending or revoking the commercial cannabis permit. Notice may be provided by either personal service, U.S. mail and/or posting or depositing the notice at the commercial cannabis business. After the hearing, the city manager shall provide notice of the decision whether to suspend or revoke the commercial cannabis permit. The decision of the city manager shall be final, subject to judicial review. The commercial cannabis permit holder has no right to appeal the decision to the city.

(j)

The city manager may immediately suspend a commercial cannabis permit without notice or hearing, subject to appeal rights as set forth in this chapter, under the following circumstances:

The commercial cannabis permit holder is convicted of a public offense in any court for the violation of any law which would be grounds for denial of a commercial cannabis permit.

§ 17.03.160 Limitations on city’s liability.

The chief of police determines immediate suspension is necessary to protect the public health, safety and welfare of the community. The city manager shall provide notice of the grounds for immediate suspension of the commercial cannabis permit and the suspension shall only be for as long as reasonably necessary to address the grounds which led to the suspension.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

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

Execute an agreement indemnifying, defending (at its sole cost and expense), and holding the city and its officers, employees, representatives, and agents harmless from any and all claims, losses, damages, injuries or liabilities associated with the permitting or approving the operation of a commercial cannabis activity or the operation thereof or associated with the commercial cannabis business or its members’ violation of any federal, state or local laws.

Maintain insurance at coverages, limits, and with conditions thereon determined necessary by the city attorney. The insurance coverage limits shall meet or exceed one million dollars per occurrence. In the alternative to maintaining commercial general liability, a commercial cannabis permit holder may post a bond, in a form subject to approval by the city attorney, with the city in the minimum amount of one million dollars. The city manager may, in their sole discretion, increase the minimum bond amount required by a commercial cannabis permit holder.

§ 17.03.170 Application procedures and application requirements.

Reimburse the city for any and all costs and expenses, including attorney fees and costs and court costs that the city may be required to pay as a result of any legal challenge related to the city’s approval of a commercial cannabis permit pursuant to this chapter or the city of King’s approval of the operation of a commercial cannabis 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 the obligations imposed under this section.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

Permittee Selection Process—Criteria for Review—Renewal, Suspension or Revocation of a Permit— Appeals. In addition to those requirements set forth in this section and elsewhere in this chapter, the city council may by resolution or ordinance adopt such forms, fees, and procedures as are necessary to implement this chapter with respect to the initial selection, future selection, investigation process, renewal, revocation, and suspension of commercial cannabis business permits and appeals for the revocation or suspension of a commercial cannabis permit.

At a minimum, the application shall contain the following requirements:

The printed full name, signature, date of birth, social security number, and present address and telephone number of all persons and entities responsible for the operation of the commercial cannabis business including managers, corporate officers, investors, any individual with an ownership interest, any member of a board of directors, any general or limited partner, and/or any member of a decision-making body for the commercial cannabis business.

The address to which correspondence from the city of King is to be sent.

The names and addresses of all businesses operated by and the employment of the applicant(s) for the five years immediately preceding the date of the application.

Any litigation in which the applicant(s) has been involved within the five years immediately preceding the date of the application and a statement of whether any business currently operated by the applicant(s) or operated by the applicant(s) within the five years immediately preceding the date of the application has been investigated or the permit or license authorizing the operation of such business has been revoked or suspended within the five years immediately preceding the date of the application.

The address of any commercial cannabis business currently being operated by the applicant(s), or any of them, or which have been previously operated by them.

The supply sources for all cannabis and cannabis products sold at the commercial cannabis business. Product supply chain including the site(s) where cultivation occurs, the product is processed or manufactured, any required testing of cannabis or cannabis products, transportation, and packaging and labeling criteria.

The names and telephone numbers of the person(s) to be regularly engaged in the operation of the proposed commercial cannabis business, whether an employee, volunteer or contractor. The application shall also have the names and telephone numbers of those persons having management and supervisory responsibilities for the proposed commercial cannabis business.

Odor control devices and techniques to prevent odors from marijuana from being detectable off-site.

Procedures for identifying, managing, and disposing of contaminated, adulterated, deteriorated or excess medical cannabis product.

Procedures for inventory control to prevent diversion of cannabis and cannabis product, employee screening, storage of cannabis and cannabis product, personnel policies, and record-keeping procedures.

(11)

A detail of the procedures to be utilized at the facility including a description of how chemicals and fertilizers will be stored, handled, used and disposed of; manufacturing methods, the transportation process, inventory procedures, and quality control procedures.

(12)

A site plan and floor plan of the commercial cannabis business denoting the property lines and the layout of all areas of the commercial cannabis business including storage, cultivation, manufacturing, testing, distributing, reception/ waiting, and all ancillary support spaces, and the relationship of the facility to adjacent properties and land uses.

(13)

Size, height, colors, and design of any proposed signage at the site. A city of King sign permit issued pursuant to the King City Municipal Code shall be required.

(14)

An operations and security plan.

(15)

Standard operating procedures detailing how operations will comply with state and local regulations, how safety and quality of products will be ensured, record-keeping procedures for financing, testing, and adverse event recording, and product recall procedures.

(16)

Proposed hours of operation.

(17)

Recycling and waste disposal information.

(18)

Youth access restriction procedures.

(19)

A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

(20)

Detailed description of energy and water usage plan enumerating best practices and leading industry practices in efficient utilization of both resources.

An application shall be denied based upon any of the following grounds:

The applicant has been issued a local or state permit or license to conduct commercial cannabis activities at any other location within the state of California or another state and the permit or license was suspended or revoked, or the applicant has had disciplinary action relating to the permit or license.

The applicant has been convicted of a serious or violent offense as listed within California Penal Code Sections 667.5 and 1192.7(c).

The applicant has been convicted of any offense listed within Business and Professions Code Section 19323.

The applicant has been convicted of a misdemeanor involving theft, dishonesty, fraud, narcotics sales or narcotic trafficking within the five years preceding the date of the application.

The applicant has been convicted of a felony involving the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined within the Federal Controlled Substance Act, unless the applicant received a Certificate of Rehabilitation as defined in the Act, within the ten years preceding the date of the application.

The applicant has engaged in misconduct related to the ownership, qualifications, functions or duties of their position with the commercial cannabis business.

The applicant has engaged in unlawful, fraudulent, unfair, or deceptive business practices as defined by the King City Municipal Code and/or state or federal law.

The applicant is under the age of twenty-one, or any age as may be set by state law.

A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

This section shall not constitute an exhaustive list of grounds for denying an application. The city manager and/or the planning commission may identify any additional grounds for denying an application or conditional use permit.

The city manager shall review each application to determine whether it contains all of the required information. If the application does not contain all of the required information, it shall be returned to the applicant for completion. The city manager shall endeavor to conclude their review within ninety days of the filing of the application. If additional time is necessary, the city manager will advise the applicant of an estimated review time.

In reviewing an application for a permit pursuant to this chapter or in reviewing the proposed commercial cannabis business, the city manager or designee may request whatever additional information is deemed necessary to carry out the purposes of this chapter.

The city manager shall have the authority to either grant or deny the application for a commercial cannabis permit. Notwithstanding what is otherwise provided in this chapter, the city manager, when approving a commercial cannabis permit, may place any additional limitations and conditions on the operation of a commercial cannabis business as he or she deems necessary, consistent with the public interest and with this chapter.

When an application is denied, the city manager shall provide a statement of decision giving the reasons for the denial and the findings upon which the decision is based. Notice of the denial may be provided by either personal service or U.S. mail. Notice is presumed to be served upon the applicant once deposit into the U.S. mail. Any person denied a commercial cannabis permit shall have the right to appeal such denial in accordance with this section.

Any appeal of a denial of an application shall be filed and conducted as prescribed in this subsection.

Within ten calendar days from the date of the denial of an application, an aggrieved party may appeal such action by filing with the city clerk a written appeal setting forth the grounds for reversing the denial. The time requirement for filing an appeal shall be deemed jurisdictional and may not be waived. Appeals not timely filed or not setting forth the basis for the appeal are defective and shall be dismissed.

Upon receipt of such written appeal, the city clerk shall set the matter for a hearing before the city manager. The hearing shall be conducted pursuant to the procedures set forth within King City Municipal Code Section 7.51.604 and shall be set for hearing in a reasonable time after the date of filing the appeal with the city clerk, but in no event later than ninety days from the date of such filing. At least ten days prior to the date of the hearing on the appeal, the city shall notify the appellant of the time and the place of the hearing. Notice may be provided by either personal service or U.S. mail. Notice is presumed to be served upon deposit into the U.S. mail. At such hearing, the city manager and the appellant may present any information they deem relevant to the decision appealed, provided the information complies with the requirements of Section 7.51.604 of the King City Municipal Code. The formal rules of evidence and procedure applicable in a court of law shall not apply to such hearing.

At the conclusion of the hearing, the city manager shall deliberate and reach a decision within fifteen calendar days. The decision and the reason(s) for the decision shall be reduced to writing. The city manager may affirm, reverse, or modify the denial issued pursuant to this code as the facts and law warrant, subject to the following limitations:

The city manager shall not have authority to waive any requirements of the code or law.

(ii)

Nothing in these procedures shall be deemed to authorize the city manager to deviate from unambiguous provisions of the governing code or statute, or well established interpretations of the same, based upon expert opinions or other reliable evidence.

A copy of the decision shall be sent by mail or otherwise to the appellant. Where known, a copy may also be provided by email.

The decision of the city manager shall be final with no further administrative appeals. Unless the governing ordinance or statute provides otherwise, if the appellant seeks further relief, the appellant shall file a petition for writ of mandate in superior court pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6 within ninety calendar days of the date of the decision.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017)

§ 17.03.180 Records and reporting.

Subject to the Health Insurance Portability and Accountability Act (HIPAA) regulations, each commercial cannabis business shall allow city of King officials to have access to the commercial cannabis business’s books, records, accounts, and any and all data relevant to its permitted activities for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data shall be produced within twenty-four hours after receipt of the city’s request. Failure to timely provide the requested records may result in immediate suspension of the commercial cannabis permit.

Each commercial cannabis business shall file with the city manager an audit of its financial operations for the previous fiscal year, complete and certified by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. The audit shall include, but not be limited to, a discussion, analysis, and verification of each of the records required to be maintained pursuant to this chapter. The information contained in the audit shall be made available in standard electronic format which shall be compatible with Microsoft Office programs and software and which can easily be imported into either Excel, Access or any other contemporary software designated by the city manager.

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 sold or delivered.

§ 17.03.190 Prohibition on transfer of commercial cannabis permits.

Each owner and/or operator of a commercial cannabis business shall maintain a current register of all employees currently employed by the commercial cannabis business and shall disclose such register to any city official upon request.

All records required by this chapter shall be maintained by the commercial cannabis business for a period of not less than seven years and shall otherwise keep accurate records of all commercial cannabis business activity and provide such records for inspection consistent with California Business and Professions Code Section 26160 and any additional rules promulgated by the licensing authority pursuant to that section or the city council by resolution or ordinance.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017)

No person shall operate a commercial cannabis business under a commercial cannabis permit issued pursuant to this chapter at any place or location other than that identified on the permit.

Any permit issued pursuant to this chapter shall be null and void upon sale or transfer of ownership of the commercial cannabis business unless prior approval is given by the city manager and the proposed transferee submits all required application materials and pays all applicable fees and charges and independently meets the requirements of this chapter.

Any attempt to transfer or any transfer of a commercial cannabis permit issued pursuant to this chapter is hereby declared void and the commercial cannabis permit deemed immediately revoked and no longer of any force or effect.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.200 Packaging and labeling.

Prior to the sale or the delivery of any edible cannabis or edible cannabis product the same shall be labeled and in tamper-evident packaging which at least meets the requirements of California Business and Professions Code Section 19347, as the same may be amended from time to time or superseded or replaced by subsequent state legislation or by any department or division of the state of California. The city council may impose additional packaging and labeling requirements on cannabis or cannabis products by resolution.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.210 Operating requirements.

In addition to those operating requirements specifically set forth elsewhere in this chapter and except as may otherwise be expressly set forth in this chapter, the following operating requirements shall apply to all commercial cannabis businesses operating in the city of King.

Hours of Operation. Commercial cannabis businesses shall only be open to the public between the hours of eight a.m. to seven p.m. Monday through Sunday. Storefront dispensaries shall only be open to the public between the hours of eight a.m. to ten p.m. Monday through Sunday.

Restriction on Consumption. Cannabis shall not be consumed on the premises of any commercial cannabis businesses or elsewhere in the city other than within private residences.

No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of the property. No outdoor storage of cannabis or cannabis products is permitted at any time.

Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business shall have in place a point-of-sale tracking system to track and to report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale) and shall ensure that such information is compatible with the city’s recordkeeping systems. The system must have the capability to produce historical transactional data for review by the city. All information provided to the city pursuant to this subsection shall be confidential and shall not be disclosed, except as may otherwise be required under law.

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.

Emergency Contact. Each commercial cannabis business shall provide the city manager with the name, telephone number (mobile preferred, if available) of an on-site employee or owner to whom emergency notice can be provided.

Signage and Notices.

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 King City Municipal Code, including, but not limited to, issuance of a city of King sign permit.

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.

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

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.

Signage shall not be directly illuminated, internally or externally. No banners, flags or other prohibited signs may be used at any time.

Minors. Persons under the age of twenty-one years shall not be allowed on the premises of a commercial cannabis business.

It is unlawful and a violation of this chapter for any person to employ any other person at a commercial cannabis business who is not at least twenty-one years of age.

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.

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 is not detected outside of the facility, anywhere on an 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.

In order to determine the existence of a violation of this subsection (i), the city may measure for cannabis odor at the commercial cannabis business with an approved field olfactometer device, including, but not limited to, a Nasal Ranger Field Olfactometer® or Scentometer®, according to the manufacturer’s specifications and operating instructions. The threshold of detection (Dilutions to Threshold or D/T) will be determined in a sample of the ambient air after it is diluted with three equally sized samples of odor-free air. Two samples or observations will be taken not less than fifteen minutes apart within a one hour period. The two samples will be taken at the building site of the commercial cannabis business. If the threshold of detection is four or greater, the commercial cannabis business or commercial cannabis permit holder and/or the property owner will be issued a notice to abate public nuisance. The notice shall include the following:

The King City Municipal Code violation which constitutes the public nuisance;

The required remedy for abating the public nuisance; and

Provide a reasonable time period to abate the public nuisance, unless the public nuisance constitutes an immediate threat to public health, safety and welfare.

Failure to timely abate the public nuisance may result in immediate suspension or revocation of the commercial cannabis permit as provided within Section 17.03.150 of this chapter. In addition, an application for renewal of a commercial cannabis permit shall be denied pursuant to Section 17.03.040(f)(6)(G).

Every person or entity owning, possessing, or having charge or control of real property within the city shall manage that property and control the environment thereon in a manner so as not to violate the provisions of this subsection (i), and the owner shall be liable for violations of the provisions of this subsection (i), regardless of any contract or agreement with any third party regarding the property.

Every occupant, lessee, or holder of any possessory interest in real property shall maintain the property in a manner so as not to violate the provisions of this subsection (i).

An appeal of the notice to abate public nuisance shall be filed with the city clerk within ten calendar days from the date upon the notice and shall provide the specific basis for granting the appeal. An untimely filed appeal shall constitute a waiver of the appeal of the notice. Further, the ten-day time period for filing an appeal shall be jurisdictional, and as such, an untimely appeal shall not be considered by the city.

The city is authorized to seek reimbursement from the commercial cannabis permit holder, the commercial cannabis business and/or property owner for all costs, including, but not limited to, court costs, attorney’s fees, filing fees, administrative time and fees and employee time, incurred while enforcing the requirements of this subsection (i). The requirements of this subsection shall be in addition to any other provision provided for within the King City Municipal Code.

The requirements of this subsection (i), may be amended from time to time by majority vote of the city council of the city of King, and as such, all commercial cannabis businesses shall comply with any and all amendments to this subsection enacted by the city.

All current commercial cannabis businesses shall have sixty days from the effective date of the ordinance codified in this section to bring their businesses into compliance with the requirements of this subsection (i).

(j)

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

(k)

Background Check. Every person listed as an owner, investor, shareholder, board member, manager, supervisor or employee of the commercial cannabis business must submit fingerprints and other information deemed necessary by the city manager for a background check. In the alternative, the applicant can submit a completed background check from a city approved vendor which shall be reviewed by the city manager. No person shall be issued a permit to operate a commercial cannabis business unless they have first cleared the background check, as determined by the city manager, as required by this section. An owner, investor, shareholder and/or board member with less than two and one-half percent ownership stake or interest in the commercial cannabis business or another business entity or trust which is an owner, investor or shareholder of the commercial cannabis business shall be exempt from the background check requirement. Further, all owners, investors, shareholders, board members, managers, supervisors and/or employees of a publicly traded business entity with an ownership stake or interest in the commercial cannabis business shall be exempt from the background check requirement. A business entity is considered publicly traded from the purposes of this chapter if the business entity’s stock is traded on the NASDAQ, S&P 500, and/or NYSE. 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, shall be paid at the time the application for a commercial cannabis permit is submitted. The applicant(s) shall provide an initial deposit in an amount the city manager estimates will cover the cost of the background investigation, which shall be used and drawn upon as a retainer to cover the actual costs of such investigation. If this amount is not sufficient, the applicant shall provide additional amounts that are necessary and if the applicant is unable to provide the additional amounts necessary to complete the investigation, the investigation shall cease and shall not continue until such additional amounts are paid. Upon completion of the investigation or in the event the applicant withdraws their application, any unused amount will be refunded to the applicant within thirty days.

Each prospective owner, investor, shareholder, board member, manager and/or supervisor shall be required to submit an application to the city manager so that a background check can be performed by the chief of police or his/her designee. The application shall contain the following:

Name, current resident address, and telephone number;

Date of birth;

Social security number, tax identification number or state of California identification card; (D)Height, weight, eye color and hair color;

Photographs for identification purposes (photographs may be taken by the King City police department or the prospective employee may provide the city with a United States Passport quality photograph);

Be fingerprinted by the King City police department or the California Department of Justice LiveScan system and agree to a criminal history records check conducted by the city manager based upon their fingerprints;

(G)

Such other identification and information as deemed necessary by the chief of police and city manager;

(H)

Authorization for the city manager to seek verification of the information contained within the application, including, but not limited to, the prospective employee’s criminal arrest and credit history.

Every owner, investor, shareholder, board member, manager and/or supervisor shall provide the city with a non-refundable fee, as established by resolution of the city council, to process their application. The fee shall include an amount to cover the costs of fingerprinting, photographing, background checks as well as general review and processing of the application. In the alternative, the applicant may provide the city manager with a completed background check performed by a third party vendor approved by the city.

The city manager, upon receiving a properly completed application and payment of the application fee or a completed third party background check, shall conduct an investigation into the information provided by the applicant. The background check and investigation or review shall be complete within thirty days of receiving the properly completed application and completed background check. The city manager shall provide the applicant with notice either approving or denying the requested employee work permit within fifteen days of completing the background check and investigation. The city manager, in their sole discretion, may conditionally approve the issuance of an employee work permit pending completion of the background check and investigation. Notice of the decision shall be personally served or mailed to the applicant via U.S. mail. Notice of the decision is presumed served upon the applicant at the time it is deposited within the U.S. mail. The decision of the city manager on an employee permit shall be final, subject to judicial review.

An owner, investor, shareholder, board member, manager and/or supervisor shall be deemed to have failed the background check process based upon any of the following grounds:

The applicant has been convicted of a serious or violent offense as listed within California Penal Code Sections 667.5 and 1192.7(c);

The applicant has been convicted of any offense listed within Business and Professions Code Section 19323;

The applicant has been convicted of a misdemeanor involving theft, dishonesty, fraud, narcotics sales or narcotic trafficking within the five years preceding the date of the application;

The applicant has engage in misconduct related to the qualifications, functions or duties of their position with the commercial cannabis business;

(G)

The applicant has engaged in unlawful, fraudulent, unfair, or deceptive business practices as defined by the King City Municipal Code and/or state or federal law;

(H)

The applicant is under the age of twenty-one, or any age as may be set by state law;

(I)

The applicant meets any of the conditions identified within Business and Professions Code Section 26057(b).

(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.

(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)

Greenhouses. Greenhouses shall only be utilized for commercial cannabis cultivation and/or nurseries. A greenhouse shall be a fully enclosed permanent structure with solid walls that are clad in an opaque material with climate control, such as heating and ventilation capabilities and supplemental artificial lighting, and that uses a combination of natural and supplemental artificial lighting. The cultivation and nursery activities conducted within a greenhouse shall not be visible from any public right-of-way or adjacent private property. No greenhouse or translucent manufactured structure may be built or erected within five hundred feet of any residential zone area in the city; however, based upon the prevailing winds impacting the city, the southern portion of any greenhouse or translucent manufactured structure shall not be built or erected within seven hundred fifty feet of any residential zone area in the city. All greenhouses shall comply with the requirements of this chapter and the King City Municipal Code, including the adopted requirements of the California Building Code, the California Fire Code and/or any other code adopted or incorporated by reference within the King City Municipal Code. The city manager shall have authority, upon consultation with the city attorney, to establish additional regulations and/or guidelines for operating greenhouses for commercial cannabis cultivation and/or nurseries within the city.

(o)

Storefront Dispensaries. Prior to receiving a commercial cannabis storefront dispensary permit, the applicant shall submit an interior and exterior design plan to the city. The design plan shall minimally address the following elements:

Existing structures shall be remodeled to include all new interior and exterior paint or coverings for the dispensary.

Windows shall cover a minimum of forty percent of the exterior front wall of the dispensary, including, but not limited to, a portion of opaque glass sufficient to prevent visibility of cannabis products.

All merchandise shall be displayed in new commercial grade display cases.

§ 17.03.220 Cultivation, manufacture, waste, and storage requirements.

The dispensary shall contain all new flooring and fixtures. Flooring for the purposes of this subsection shall include, but is not limited to, carpet, tile, hardwood, laminate/hybrid flooring and/or a combination thereof. Fixtures for the purposes of this subsection shall include, but are not limited to, generally utilized lighting, plumbing and/or electrical fixtures.

The interior and exterior design plan shall comply with this chapter, the King City Municipal Code and/or state and federal law. The city manager or his/her designee shall provide written approval of the interior and exterior design of a storefront dispensary prior to the city issuing a commercial cannabis storefront dispensary permit.

(p)

A commercial cannabis storefront dispensary shall not commence operation within the city limits prior to receiving a city issued commercial cannabis storefront dispensary permit. Violation of this section and any subsection contained herein shall constitute a misdemeanor and shall be punishable consistent with the requirements of this chapter and/or the King City Municipal Code.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017; Ord. 763 § 3, 2018; Ord. 767 § 3, 2018; Ord. 786 § 3, 2020; Ord. 803 § 3, 2021)

Any person issued a permit pursuant to this chapter must follow all pesticide use requirements of local, state and federal law. The Monterey County Agricultural Commissioner may inspect the commercial cannabis business at any time during regular business hours to ensure compliance with this section.

All weighing devices must be maintained in compliance with local, state or federal law and comply with applicable regulations regarding device registration with the Agricultural Commissioner.

Any person issued a permit pursuant to this chapter must follow all local, state and federal requirements for solid waste and hazardous waste disposal. The Monterey County Environmental Health Bureau may inspect the commercial cannabis business at any time during regular business hours to ensure compliance with this section.

In no case shall any hazardous, flammable or explosive substances be used to process or manufacture cannabis products on site. Food grade alcohol solely for the purposes of cleaning machinery and dissolving wax, unless otherwise prohibited by the state of California, is permitted. The city and Monterey County Environmental Health Bureau may inspect the commercial cannabis business at any time during regular business hours to ensure compliance with this section.

All food products, food storage facilities, food-related utensils, equipment and materials shall be approved, used, managed and handled in accordance to the provisions of the California Retail Food Code, California Health and Safety Code Sections 113700 through 114437. All food products shall be protected from contamination at all times, and all food handlers must be clean, in good health and free from communicable diseases. The Monterey County Environmental Health Bureau may inspect the commercial cannabis at any time during regular business hours to ensure compliance with this section.

§ 17.03.230 Limitation on commercial cannabis business activities.

Stacking shall be allowed in a given structure but only to the point that measuring the total canopy of each level of stacking is cumulatively no greater than the maximum canopy size allowed under state licensing. For purposes of this section, “stacking” is defined as the practice of growing marijuana plants on platforms or tables and stacking them in multiple layers on top of each other.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

No more than two commercial cannabis storefront dispensary permits shall be issued by the city. Further, no more than one hundred acres of land or sixty percent of the total land zoned within the city to allow for commercial cannabis business activities shall be utilized as commercial cannabis business. The entire portion of a piece of property being utilized as a commercial cannabis business shall be counted towards the one hundred acre or sixty percent limitation established above. In addition, no more than one million, three hundred fifty thousand square feet of total canopy whether under cultivation or nursery activity will be allowed within the city at any one time and commercial cannabis permits shall be issued by the city for cultivation and nursery activity up to a maximum one million three hundred fifty thousand square feet of total canopy within the city. Nurseries shall be limited to a total of twenty-five thousand square feet in size per Type 4 “Nursery” license issued by the city.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 773 § 3, 2019; Ord. 786 § 3, 2020)

§ 17.03.240 Periodic review by the city council.

In the sole discretion of the city manager; the city attorney, the chief of police, and the community development director shall report to the city council findings on the operation of any cultivation facilities permitted pursuant to this chapter and shall make a recommendation whether the cultivation facilities should be permitted to continue in operation for the remaining period of the term of their license (in addition to whatever other recommendations may be made) and whether the city should renew one or more of the permits for an additional period. Any termination or revocation of a license or permit, shall be in accordance with the provisions of the King City Municipal Code.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.250 Operating requirements for cultivation and nurseries.

Outdoor Cultivation and Nursery Activity Prohibited. All outdoor cultivation and nursery activity is prohibited.

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

If a premises includes nursery activities as defined in Business and Professions Code Section 19332, the premises may have only one nursery located on the premises and the nursery activity must be permitted pursuant to this chapter and state law. The nursery shall be limited to a maximum size of twenty-five thousand square feet of canopy for each premises.

Cannabis cultivation and nursery activity 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.

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

The cultivation of cannabis and any nursery activity 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.

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

An 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 nursery or 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.

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

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

§ 17.03.260 Cannabis manufacturing—Edibles and other cannabis products—Sale or distribution of edible and other cannabis products.

Plan for addressing odor and other public nuisances which may derive from the nursery or cultivation site.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

The manufacturing of food or other products infused with or which otherwise contain cannabis may be manufactured within the appropriate zoning districts as defined in Title 17, Zoning, of the King City Municipal Code, subject to the regulations set forth in this section and subject to whatever additional regulations may be promulgated hereunder by an ordinance or resolution of the city council or otherwise pursuant to this chapter.

No edible cannabis product(s) shall be sold or distributed at an unpermitted storefront or non-storefront commercial cannabis dispensary or business within the city limits. Edible cannabis product(s) may be sold or distributed at a permitted storefront and/or non-storefront retail commercial cannabis dispensary or business.

All items to be sold or distributed shall be individually wrapped at the original point of preparation. Labeling must include a warning if nuts or other known allergens are used, and must include the total weight (in ounces or grams) of cannabis in the package. A warning that the item is a medication and not a food must be clearly legible on the front of the package. The package must have a label warning that the product is to be kept away from children. The label must also state that the product contains cannabis and must specify the date of manufacture.

Any edible cannabis product that is made to resemble a typical food product must be in a properly labeled opaque (non-see-through) package before it leaves the commercial cannabis business. Deliveries must be in a properly labeled opaque package when delivered.

§ 17.03.270 Cannabis manufacturing and testing.

Preparation of commercial edible cannabis products and non-edible cannabis products shall comply with all applicable federal, state and local laws, regulations and/or guidelines governing manufacturing procedures and safety measures. The city manager shall have authority, upon consultation with the city attorney, to establish additional regulations and/or guidelines for preparing commercial edible cannabis products and non-edible cannabis products within the city.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017; Ord. 773 § 3, 2019; Ord. 786 § 3, 2020)

Cannabis manufacturing facilities requiring a Type-6 state license (non-volatile manufacturing) as defined in Business and Professions Code Section 19341, may be permitted to operate within the appropriate industrial districts as defined in Title 17 of the King City Municipal Code. Cannabis manufacturing facilities requiring a Type-7 state license (volatile manufacturing), as defined in Business and Professions Code Section 19341, may be permitted to operate within the appropriate industrial districts as defined in Title 17 of the King City Municipal Code. No volatile fluid or material, shall be used in Type-6 licensed manufacturing facilities unless otherwise authorized and approved by the state of California. For purposes of this section, within a Type-6 licensed manufacturing facility or a permitted commercial cannabis testing facility food grade alcohol may be utilized solely to clean machinery and dissolve wax, unless otherwise prohibited by the state of California. No commercial cannabis business or facility shall store food grade alcohol or any other volatile chemical, solvent or substance in an amount which exceeds the maximum authorized amount determined by the fire chief and/or chief of police for the city of King.

Commercial cannabis manufacturing facilities shall comply with all applicable federal, state and local laws, regulations and/or guidelines governing manufacturing procedures and safety measures. The city manager shall have authority, upon consultation with the city attorney, to establish additional regulations and/or guidelines for operating a commercial cannabis manufacturing facility within the city.

Any compressed gases used in the manufacturing process shall not be stored on any property within the city in containers which exceeds the maximum authorized amount determined by the fire chief and/or chief of police for the city of King.

No more than twenty-five commercial cannabis manufacturing businesses may operate within the city at any one time and no more than twenty-five commercial cannabis manufacturing permits shall be issued by the city for commercial cannabis manufacturing businesses to operate within the city.

§ 17.03.280 Promulgation of regulations and standards.

Testing Facilities. Commercial cannabis testing facilities requiring a Type-8 state license may be permitted to operate within the appropriate industrial districts as defined in Title 17 of the King City Municipal Code. Commercial cannabis testing facilities shall comply with all applicable federal, state and local laws, regulations and/or guidelines governing testing procedures and safety measures. The city manager shall have authority, upon consultation with the city attorney, to establish additional regulations and/or guidelines for operating a commercial cannabis testing facility within the city.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017; Ord. 745 § 3, 2017; Ord. 763 § 3, 2018; Ord. 773 § 3, 2019)

The city manager is authorized to promulgate reasonable regulations necessary to implement the requirements and fulfill the policies of this chapter related to cannabis and cannabis products.

Regulations may be published on the city’s website.

Regulations promulgated by the city manager shall have the same force and effect of law and become effective upon date of publication.

(Ord. 728 § 1, 2016; Ord. 743 § 3, 2017)

§ 17.03.290 Community relations.

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.