[1]
Code reviser's note: Ordinance 1119 adds the provisions of this chapter as Chapter 4.175 SLTCC. The chapter has been editorially renumbered to prevent duplication of numbering.
It is the purpose and intent of this chapter to establish a cannabis public safety license and the procedures for issuance of said license. A cannabis public safety license shall be required as a condition for the continued operation of any cannabis business as set forth in this chapter. The regulations in this chapter are meant to ensure the health, safety, and welfare of the residents of the city of South Lake Tahoe. Cannabis businesses within the city must comply with all provisions of the South Lake Tahoe City Code for obtaining permits and licenses for a cannabis business and must comply with the state cannabis laws and all other applicable local and state laws. Nothing in this chapter permits activities that are otherwise illegal under state or local laws.
(Ord. 1119 § 1; Ord. 1181 § 2)
As used in this chapter:
"Applicant"
means any person who is required to file an application for issuance of a cannabis public safety license to operate a cannabis business under this chapter, including without limitation an individual owner, operator, or agent of a cannabis business.
"Application for renewal"
means an application for a renewed cannabis public safety license, which application may be submitted by a licensee.
"Cannabis"
shall have the meaning set forth in California Business and Professions Code Section 26001(f) and as subsequently amended.
"Cannabis business"
shall include:
a. 
Any business, facility, use, establishment, property, or location, whether fixed or mobile, where a commercial cannabis activity takes place.
b. 
Any building, facility, use, establishment, property, or location where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a state license under California Business and Professions Code Section 26000 and following, including but not limited to cannabis cultivation, cannabis distribution, cannabis manufacturing, cannabis testing and cannabis retail sales, and the operation of a cannabis microbusiness.
"Cannabis products"
shall have the meaning set forth in California Business and Professions Code Section 26001(k) and as subsequently amended.
"Cannabis use permit"
shall mean a use permit issued for the operation of a cannabis business pursuant to Article X of Chapter 6.55 SLTCC.
"Commercial cannabis activity"
shall include the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or acting as a cannabis event organizer for temporary cannabis events.
"Cultivation"
shall mean any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Curbside delivery"
shall mean a sale of cannabis or cannabis products from a licensed retail storefront or licensed microbusiness with retailer component that is delivered to a customer in their vehicle parked immediately outside the retail or microbusiness premises.
"Licensee"
shall mean the cannabis business owner identified to the city as such, and to whom a city cannabis public safety license has been issued.
"Operator"
shall mean any person responsible for management of the cannabis business; any person listed as an officer, director, manager, or member in statement of information filed with the Secretary of State for a cannabis business; any person listed in a governing document for a cannabis business, such as bylaws, articles of incorporation, or operating agreement; any person owning an interest in the cannabis business, unless the interest is solely a security, lien, or encumbrance; and any person that supervises an employee of the cannabis business.
"Owner"
shall have that meaning set forth in California Business and Professions Code Section 26001(ap) and as it may be amended.
"Permittee"
shall mean any person issued a cannabis use permit under Article X of Chapter 6.55 SLTCC.
"Police chief"
shall mean the chief of the city of South Lake Tahoe police department.
"Property"
shall mean the designated structure or structures and land specified in the cannabis use permit application that is owned, leased or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted.
"State cannabis laws"
means and includes California Health and Safety Code Sections 11362.1 through 11362.45; 11362.5 (Compassionate Use Act of 1996); 11362.7 through 11362.83 (Medical Marijuana Program); California Business and Professions Code Section 26000 et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA")); all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; the California Attorney General's Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Tax Code Sections 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted by the Department of Cannabis Control; any license issued by the Department of Cannabis Control; and all other applicable laws of the state of California regulating cannabis or cannabis products.
"State license"
shall mean a license from the Department of Cannabis Control issued pursuant to Division 10 of the California Business and Professions Code.
(Ord. 1119 § 1; Ord. 1181 § 2)
A. 
Cannabis Use Permit and Public Safety License Required to Operate. It shall be unlawful for any person to engage in, to conduct or carry on (or to permit to be engaged in, conducted or carried on) in or upon property located within the city the operation of a cannabis business unless that person has first obtained and continues to maintain in full force and effect a valid cannabis use permit issued by the city for that property and that type of cannabis business and a valid cannabis public safety license issued by the city to the owner and/or operator of the cannabis business, pursuant to this chapter.
B. 
Imposition of Public Safety License Fees.
1. 
Every application for a cannabis public safety license or renewal of such license shall be accompanied by a license fee in an amount set forth by separate resolution of the city council, which amount is calculated to recover the city's full cost of reviewing, issuing and administering said license. The application fee shall include the standard city fees for fingerprinting, photographing, and background check costs and shall be in addition to any other business license fee or permit fee imposed by this code or other governmental agencies.
2. 
A fee for renewal of a public safety license will be due annually.
C. 
Conditions of Operation.
1. 
Security Plan. A licensee shall provide adequate security on the premises of the cannabis business. The following minimum security standards shall be maintained at all times:
a. 
Surveillance System.
i. 
Each cannabis business shall be monitored at all times by a digital closed-circuit television surveillance system. Surveillance systems shall meet any applicable state law requirements, including those set forth in Title 4 of the California Code of Regulations Section 15044, and any subsequently enacted regulation. The camera and video recording surveillance system must be capable of providing surveillance of both interior and exterior areas of the cannabis business and must be of adequate quality, color rendition and resolution to allow the ready identification of an individual on or adjacent to the property. The recordings shall be maintained at the cannabis business or other location accessible to the police department for a period of not less than 90 days.
ii. 
A sign shall be posted inside and at the entrances to the establishment indicating that the premises are under camera/video surveillance.
iii. 
The surveillance system recordings shall be maintained in such manner as to allow remote access by the police department. The police chief may request that the permittee provide secured electronic access to video feeds of the surveillance system in real time, to be provided via an online portal or through other software deemed acceptable to the police chief.
b. 
Loitering Adjacent to a Cannabis Business. Licensees shall take reasonable measures to reduce loitering by cannabis business members, patrons, guests and invitees in public areas, sidewalks, alleys and areas surrounding the property and adjacent premises during the business hours of the cannabis business.
c. 
Identification Verification System. Each cannabis business shall require identification upon entry to the cannabis business and shall implement electronic verification of identification provided to ensure that applicable age restrictions in SLTCC § 6.55.800(A)(4) are complied with.
d. 
On-Site Consumption. If a retail cannabis business or a microbusiness with a retailer component includes an on-site consumption area, adequate security and lighting shall be provided for the on-site consumption area to protect the safety of patrons and protect the premises from theft.
e. 
Curbside Delivery. Curbside delivery of cannabis or cannabis products must occur under video surveillance that meets the requirements of subsection (C)(1)(a)(i) of this section for recording point-of-sale areas. Retail employees engaging in curbside delivery must verify each customer's age and identity.
2. 
Nuisances Prohibited. A licensee shall take reasonable steps to correct objectionable conditions that constitute a nuisance on any public sidewalk or public space abutting the cannabis business premises.
a. 
For purposes of this section, "objectionable conditions that constitute a nuisance" means public consumption of cannabis or cannabis products, disturbance of the peace, drug trafficking, disposing of litter or trash, or excessive loud noise.
b. 
For purposes of this section, "reasonable steps" means all of the following:
i. 
Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee, or his or her agents or employees, shall not be construed as evidence of objectionable conditions that constitute a nuisance.
ii. 
Requesting those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his or her agents or employees, feels that their personal safety would be threatened in making that request.
iii. 
Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering.
3. 
On-Site Consumption Operations. A licensee with an on-site consumption area shall maintain the following operating conditions, in addition to the operating conditions in this subsection (C), at all times:
a. 
No person under 21 years of age shall be allowed in the on-site consumption area. Employees shall notify patrons verbally and through posting of a conspicuous sign that entry into the premises by persons under the age of 21 is prohibited.
b. 
Hours of operating for cannabis sales shall be limited to 6:00 a.m. to 10:00 p.m., and hours of operation in the on-site consumption area shall end no later than 2:00 a.m., or as further limited by the cannabis use permit.
c. 
The licensee shall implement a ventilation plan to prevent the flow of smoke to all other areas of the cannabis business and neighboring businesses and properties, such that odor generated is not detected outside the consumption area.
d. 
The licensee shall provide employee training on how to assist customers to avoid overconsumption of edibles. This training must include information about various products the consumption area sells, such as potency, absorption time, and effects.
e. 
A responsible employee of the cannabis business must be present in the on-site consumption area at all times when it is open to customers.
f. 
Cannabis products ingested, smoked, or vaped in an on-site consumption area must be purchased on-site.
g. 
An employee of the cannabis business must securely repackage a customer's opened and unfinished cannabis products before the customer leaves the on-site consumption area.
h. 
The sale or consumption of alcohol or tobacco products is not allowed on the premises.
i. 
A licensee allowing smoking or vaping shall comply with Chapter 4.100 SLTCC, Clean Air and Health Protection.
j. 
Employees must cut off service to impaired customers and provide an option for a safe ride home, such as a shuttle, taxi, or ride-share service.
4. 
State License Required to Operate. Operation of a cannabis business shall not commence until a licensee has obtained a valid state license. Licensees shall maintain a valid state license at all times during operation of a cannabis business.
D. 
Inspection of Cannabis Business.
1. 
City officials may enter and inspect, investigate, audit, or review any licensee's cannabis business, without prior notice, to ensure compliance and enforcement of the provisions of this chapter. An inspection, investigation, review or audit may be conducted at any time that the licensee is exercising privileges under the license or at such time otherwise as agreed to by the police chief and the licensee.
2. 
No licensee or any other person shall refuse, impede, obstruct, or interfere with an inspection pursuant to this chapter.
3. 
This subsection (D) shall not be construed to require a licensee to cooperate with a request that would require the licensee to waive any constitutional or statutory privilege or to comply with a request for information or other matters within an unreasonable period of time in light of the time constraints of the licensee's business.
E. 
Notification to Police Department of Security Breaches. Each licensee shall notify the chief of police immediately after discovering any of the following: diversion, theft, loss, or any criminal activity involving the cannabis business; significant discrepancies identified during inventory; or any other breach of security.
F. 
Transfer of Cannabis Public Safety Licenses Prohibited. Cannabis public safety licenses issued pursuant to this chapter shall be nontransferable to a different person or entity. Any attempt to transfer or any transfer of ownership or control of a cannabis business shall be grounds for revocation of the cannabis public safety license by the chief of police.
(Ord. 1119 § 1; Ord. 1181 § 2)
A. 
Application Procedures.
1. 
Public safety license application must be approved prior to the applicant initiating the cannabis use permit application process as set forth more fully in Article X of Chapter 6.55 SLTCC.
2. 
The city council may set further application procedures and requirements by separate resolution.
B. 
Application Filing Requirements. A complete cannabis public safety license application or application for renewal or amendment along with all required fees and materials required by this chapter shall be submitted in order for a person, entity, and/or business to be considered for a cannabis public safety license. All cannabis public safety license applications or applications for renewal or amendment shall be filed with the chief of police using forms and authorizations provided by the city.
1. 
Eligibility for Filing. Public safety license applications and applications for renewal or amendment shall be filed by the owner and/or operator of the cannabis business.
2. 
Cannabis public safety license applications and applications for renewal or amendment shall include:
a. 
For each licensee, owner, operator and employee of the cannabis business, a fully legible copy of one valid government-issued form of photo identification, such as a state driver's license or identification card. Acceptable forms of government-issued identification include, but are not limited to, driver's license or photo identity cards issued by the State Department of Motor Vehicles (or equivalent), a passport issued by the United States or by a foreign government, U.S. Military ID cards (active duty or retired military and their dependents) or a permanent resident card.
b. 
If the cannabis business is incorporated, a certified copy of the articles of organization, certificate(s) of amendment, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business.
c. 
If the cannabis business is a limited liability company, a certified copy of the articles of organization, certificate(s) of amendment, operating agreement, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business.
d. 
If the cannabis business is an unincorporated association, a copy of the articles of association and any filings made with the California Secretary of State.
e. 
The name, address, electronic mail address and mobile phone number of the applicant's or licensee's current designated agent for service of process.
f. 
Emergency Contact. The name, electronic mail address, and mobile phone number of an owner, operator, or manager to act as an on-site community relations staff person to whom the city may provide notice of any operating problems associated with the cannabis business.
g. 
A statement dated and signed by each applicant, under penalty of perjury, that the applicant has personal knowledge of the information contained in the application, that the information contained therein is true and correct.
3. 
In addition to a completed public safety license application or application for renewal, applicants or licensees shall provide and submit the following information to the chief of police:
a. 
The applicant and each owner, operator and employee shall consent to fingerprinting and a criminal background investigation, and shall undergo fingerprinting and a criminal background investigation.
b. 
Security Plans. Applicants shall provide a plan to provide adequate security on the premises of the cannabis business. The plan shall include standards showing the cannabis business's ability to comply with the conditions of SLTCC § 4.180.030(C).
C. 
Ongoing Filing and Reporting Requirements. Where a cannabis business or licensee replaces, hires, appoints or employs new operators and/or employees to its cannabis business, all such operators and employees shall be required to submit to fingerprinting and a criminal background investigation pursuant to subsection (B)(3) of this section. A cannabis business or licensee has an ongoing obligation to immediately report to the police chief any conviction for an offense listed in SLTCC § 4.180.050(A)(3) imposed on an owner, operator and/or employee of the cannabis business or licensee. A cannabis business or licensee shall also have an ongoing obligation to immediately report to the chief of police any of the events listed in SLTCC § 4.180.050(A)(4) or (5).
(Ord. 1119 § 1; Ord. 1181 § 2)
A. 
Criteria for Issuance. Cannabis public safety license applications or applications for renewal or amendment shall be approved where the chief of police confirms that the following criteria have been met:
1. 
The applicant and each owner, operator and employee of the cannabis business have authorized and completed fingerprinting.
2. 
The applicant and each owner, operator and employee of the cannabis business have authorized the use of their fingerprinting results to run a state and nationwide criminal background check.
3. 
The results of the criminal background checks establish that the applicant, owner(s), operator(s), and employees have not been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business.
The following offenses are substantially related to the qualifications, functions, or duties of a cannabis business:
a. 
A violent felony conviction, as specified in California Penal Code Section 667.5(c).
b. 
A serious felony conviction, as specified in California Penal Code Section 1192.7(c).
c. 
A felony conviction involving fraud, deceit, or embezzlement.
d. 
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.
e. 
A felony conviction for drug trafficking with enhancements pursuant to California Health and Safety Code Section 11370.4 or 11379.8.
f. 
Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license.
4. 
The applicant has not been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for any unauthorized cannabis activities.
5. 
The applicant has not been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for cultivation or production of a controlled substance on public or private lands.
6. 
Security Plan. The applicant or licensee has provided a security plan providing the minimum standards set forth in SLTCC § 4.180.030(C)(1).
7. 
Minimum Age. The applicant or licensee, and each owner, operator and employee of the cannabis business, is at least 21 years of age.
B. 
In addition to the criteria in subsection (A) of this section, the chief of police shall approve amendments to cannabis public safety licenses to allow on-site consumption at retailers or microbusinesses with a retailer component where the chief of police confirms the following criteria have been met:
1. 
The applicant has provided a site plan that shows the area designated for on-site consumption is physically separated and has a separate secure entrance from the retail storefront, and the area designated for on-site consumption is not visible from a public space and is situated and ventilated to prevent odors perceptible from neighboring properties.
2. 
If the site plan shows that adding an on-site consumption area will result in expansion of the area for retail use permitted by the cannabis use permit, the planning commission has approved an amendment to the cannabis use permit allowing the enlargement of retail space under SLTCC § 6.55.760.
3. 
The applicant has provided an updated security plan providing the minimum standards set forth in SLTCC § 4.180.030(C)(1)(d).
4. 
The applicant has provided an operations plan providing the minimum standards set forth in SLTCC § 4.180.030(C)(3).
C. 
Criteria for Denial. Cannabis public safety licenses shall not be issued, renewed, or amended where the chief of police confirms that one or more of the criteria set forth in subsection (A) or (B) of this section have not been met. If the chief of police denies the cannabis public safety license application or application for renewal or amendment, he or she shall specify in writing the reasons for the denial of the application or application for renewal, and notify the applicant that the decision shall become final unless the applicant seeks an appeal pursuant to subsection (D) of this section.
D. 
Appeal from Chief of Police Determination. An applicant who disagrees with the chief of police's decision to approve or deny a cannabis public safety license application or application for renewal or amendment may appeal the decision to the city council in accordance with the appeal provisions of Chapter 2.35 SLTCC, Administrative Appeals.
(Ord. 1119 § 1; Ord. 1181 § 2)
A. 
Cannabis public safety licenses shall expire one year after their issuance.
B. 
Cannabis public safety licenses must be renewed on an annual basis prior to expiration by filing with the chief of police an application for renewal and a renewal fee in an amount set forth by separate resolution of the city council, which amount is calculated to recover the city's full cost of reviewing, issuing and administering said license.
C. 
The application for renewal and the renewal fee shall be filed at least 30 days, but not more than 60 days, prior to the expiration of the public safety license. If a timely renewal application is filed, the licensee's cannabis public safety license shall not expire until the date that the chief of police approves or denies the public safety license application for renewal.
D. 
An application for renewal shall be subject to all filing requirements set forth in SLTCC § 4.180.040(B) and (C).
E. 
The chief of police shall issue or deny an application for renewal in accordance with the provisions of SLTCC § 4.180.050.
(Ord. 1119 § 1; Ord. 1181 § 2)
A. 
A cannabis public safety license issued under the terms of this chapter shall be suspended or revoked by the chief of police if he or she concludes any of the following:
1. 
The cannabis business or licensee has violated any of the requirements of this chapter.
2. 
The cannabis business is being operated in a manner which violates the security plan required by this chapter.
3. 
The cannabis business is being operated in a manner which constitutes a nuisance.
4. 
The cannabis business has failed to comply with the conditions of operation set forth in SLTCC § 4.180.030(C).
5. 
The cannabis business has ceased to operate for 30 days or more.
6. 
Results of a criminal background check establish that a licensee, owner(s), operator(s), and/or employee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business, as set forth in SLTCC § 4.180.050(A)(3).
7. 
The applicant has been convicted, cited, fined, or penalized by any state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for any unauthorized cannabis activities.
8. 
The applicant has been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for cultivation or production of a controlled substance on public or private lands.
9. 
The cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.
10. 
A licensee's cannabis use permit issued pursuant to Chapter 6.55 SLTCC has been terminated or revoked.
11. 
A licensee has attempted to transfer or has transferred a cannabis public safety license to another person or entity.
12. 
A licensee's state license has been suspended, terminated, or revoked.
B. 
Expiration. Any cannabis public safety license revoked pursuant to this subsection shall be deemed to be expired and shall no longer entitle the licensee to any privileges authorized by the cannabis public safety license.
C. 
Appeal from Chief of Police Determination. A licensee who disagrees with the chief of police's decision to suspend or revoke a cannabis public safety license may appeal the police chief's decision to the city council in accordance with the appeal provisions of Chapter 2.35 SLTCC, Administrative Appeals.
(Ord. 1119 § 1; Ord. 1181 § 2)
No person(s) shall have any vested rights to a cannabis public safety license, right or interest under this chapter, regardless of whether such person(s) cultivated, sold, distributed or otherwise engaged in acts related to the use of cannabis prior to adoption of the ordinance codified in this chapter.
(Ord. 1119 § 1; Ord. 1181 § 2)