These regulations shall be known and cited as the "cannabis business code" and may hereinafter be referred to as the "code."
(Ord. 25-006, 11/18/2025)
The purpose and intent of this code is to establish a cannabis business pilot program containing a comprehensive set of regulations with regulatory permits applicable to the operation of cannabis businesses and to protect the health, safety, and welfare of the residents of the City of Dixon. The regulations in this code do not interfere with a qualified patient's right to obtain, cultivate, and use medicinal cannabis as authorized under State law, nor do they criminalize the possession or cultivation of cannabis by qualified patients or their primary caregivers. Cannabis businesses shall comply with all provisions of the Dixon Municipal Code, State law and regulations, and all other applicable local codes and regulations. It is neither the intent nor the effect of this code to condone or legitimize the illegal use or consumption of cannabis under Federal, State, or local law.
(Ord. 25-006, 11/18/2025)
include the actual and reasonable costs incurred by the City to abate a public nuisance. These costs include all direct and indirect costs to the City that result from the total abatement action, including, but not limited to, investigation costs, costs to enforce the DMC and any applicable State or County law, clerical and administrative costs to process paperwork, costs incurred to provide notices and prepare for and conduct administrative appeal hearings, and costs to conduct actual abatement of the nuisance. Costs include personnel costs, administrative overhead, costs for equipment such as cameras and vehicles, staff time to hire a contractor, and reasonable attorneys' fees incurred by City.
means a person that files an application to operate a cannabis business pursuant to this code.
means a profession, trade, occupation, gainful activity, and all and every kind of calling whether or not carried on for profit.
means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis" does not mean "industrial hemp" as defined by Cal. Health & Safety Code § 11018.5.
means any business engaged in commercial cannabis activity. "Cannabis business" does not include any of the following:
A clinic licensed pursuant to Cal. Health & Safety Code Chapter 1 of Division 2.
A residential care facility for persons with chronic life-threatening illness licensed pursuant to Cal. Health & Safety Code Chapter 3.01 of Division 2.
A residential care facility for the elderly licensed pursuant to Cal. Health & Safety Code Chapter 3.2 of Division 2.
A residential hospice or a home health agency licensed pursuant to Cal. Health & Safety Code Chapters 8 and 8.5 of Division 2.
The cultivation, delivery, gift, or furnishing of cannabis by a qualified patient, a primary caregiver, or other person with an identification card as defined by Cal. Health & Safety Code § 11362.7 provided such activity complies strictly with all applicable State law, including, but not limited to, Cal. Health & Safety Code §§ 11362.5 and 11362.765.
means a conditional use permit issued to a cannabis business pursuant to this code.
means any cannabis business that, pursuant to a Type 1, Type 1A, Type 1B, Type 1C, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, Type 5, Type 5A, Type 5B, or Type 12 State cannabis license, cultivates cannabis or cannabis products.
means the sale of cannabis and cannabis products by delivery to a customer pursuant to a Type 10 State cannabis license. "Cannabis delivery" does not mean the transfer or sale of cannabis or cannabis products between two cannabis businesses.
means a business at a particular location or real property involving the distribution of cannabis to qualified patients, primary caregivers, persons with identification cards, or customers pursuant to a Type 10 State cannabis license that is consistent with State law and this chapter.
means any cannabis business that, pursuant to a Type 6, Type 7, or Type 12 State cannabis license, manufactures cannabis or cannabis products.
means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
means a cannabis business that tests cannabis or cannabis products pursuant to a Type 8 State cannabis license.
means the City of Dixon, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged, or reincorporated form.
means a business license issued by the City pursuant to DMC chapter 6.02.
means the Dixon City Manager or their designee.
includes the cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis or cannabis products that requires a State license.
means the Dixon Community Development Director or their designee.
means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
include all actual and reasonable costs incurred by the City to enforce compliance with the DMC and any applicable State, County, or City public health and safety law that are not included within abatement costs. Enforcement costs shall also include, but are not limited to, costs of fringe benefits for personnel, administrative overhead, costs of equipment, costs of materials, costs related to investigations, costs related to issuing and defending administrative or court citations, costs incurred investigating and abating violations of the DMC or State or County law violations, and reasonable attorneys' fees related to these activities.
means a document issued by the State Department of Health Services that identifies a person authorized to engage in the medical use of marijuana and the person's designated primary caregiver, if any.
means a State license issued pursuant to Cal. Bus. & Prof. Code § 26000.
means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
means the tax imposed on all commercial cannabis businesses pursuant to DMC section 4.02.035.
means any person or entity who has been granted a cannabis conditional use permit by the City authorizing the operation of a cannabis business, and who is operating or intends to operate such business in accordance with the terms and conditions of that permit.
means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.
has the same meaning as that term is defined by Cal. Health & Safety Code § 11362.7.
has the same meaning as that term is defined by Cal. Health & Safety Code § 11362.7.
means a person or entity responsible for creating, causing, committing, or maintaining any violation of this code or State or County law.
means the real property that is the subject of any abatement or enforcement action by the City for which the City incurred costs and seeks recovery under this code.
means a structure that is erected or placed on a lot for a limited and specified period, not intended for permanent occupancy, and removed upon expiration of the approved time period.
(Ord. 25-006, 11/18/2025)
A.
Cannabis businesses are prohibited from operating in the City without the required state license(s) and City approvals.
B.
No person or entity shall establish, operate, or continue to operate any cannabis business within the City without first obtaining, and thereafter maintaining in good standing, each of the following:
C.
Each cannabis business shall continuously maintain all required state licenses and local approvals. The expiration, suspension, or revocation of any state license or local approval shall constitute grounds for suspension or revocation of all others local approvals and shall require the immediate cessation of all cannabis operations until such approvals are reinstated or reissued.
D.
Obtaining any state or local approval does not create a vested right to continue operating a cannabis business and shall not limit the City's authority to amend, suspend, or terminate any local approvals as provided by law or by the terms of the applicable approval.
E.
This Chapter shall be interpreted and applied in a manner consistent with statewide regulation of cannabis promulgated by the California Legislature or voter initiative.
(Ord. 25-006, 11/18/2025)
A.
A person may apply to operate a cannabis business by filing an application with the Community Development Director on a form provided by the City.
B.
No cannabis business application shall be processed unless applicant has entered into a funding agreement with the City pursuant to DMC Chapter 4.10 to cover application processing costs as well as ongoing monitoring, enforcement and inspections while the business is in operation.
C.
No cannabis business application shall be processed unless applicant has executed an indemnification agreement approved by the City attorney.
D.
Any proposed transfer of ownership of a cannabis business shall be submitted through a cannabis business application, together with all required fees and documentation. The transferee shall meet all eligibility requirements for a cannabis business under this chapter.
(Ord. 25-006, 11/18/2025)
A.
Any application for a license, transfer of ownership, or other approval as provided in this chapter, shall include the express authorization by the following individuals to allow the Police Chief to perform a comprehensive background investigation by providing verified fingerprint information to the Dixon Police Department for purposes of background checks:
1.
If the applicant is a natural person, that person.
2.
If the applicant is a partnership, all of the partners.
3.
If the applicant is a corporation, both the officers and directors, together with any person with an ownership interest of ten percent (10%) or more.
4.
Any ownership or corporate structural change resulting in ten percent (10%) or more change in investment or ownership interest by any individual or entity shall require an updated background investigation to include those new ownership interests.
(Ord. 25-006, 11/18/2025)
C.
A development agreement may be approved prior to an applicant having received all required state licenses and local permits; however, no cannabis business shall receive a certificate of occupancy nor operate in the City prior to possessing the required state and local licenses and approvals.
D.
Development agreements approved pursuant to this code may not be transferred, sold, assigned or bequeathed expressly or by operation of law. Any attempt to directly or indirectly transfer a development agreement shall be unlawful and void and shall automatically revoke the permit.
(Ord. 25-006, 11/18/2025)
A.
A development agreement may be revoked, following proper notice and hearing, based on certain findings, including, but not limited to, any of the following:
1.
The development agreement was issued in error or the application contained materially incorrect or false information.
2.
Operator has violated any term or condition of the development agreement.
3.
Operator has violated any condition of approval of its cannabis conditional use permit.
4.
Operator has failed to obtain or maintain a valid cannabis conditional use permit, or such permit has been revoked.
5.
Operator has failed to obtain or maintain a City business license, or such license has been revoked.
6.
Operator's applicable state license has been revoked, suspended, or otherwise rendered invalid.
7.
Operator has violated any applicable state or local law or regulation.
8.
Operator has violated any provision of the DMC.
9.
Operation creates a public or private nuisance including but not limited to activities that endanger public health, safety, or welfare.
C.
Upon revocation of the development agreement for violation of any term or condition thereof, the operator shall immediately cease all operations authorized under the development agreement. Revocation of operator's development agreement shall be grounds for revocation of operator's cannabis conditional use permit and City business license.
(Ord. 25-006, 11/18/2025)
A.
Any cannabis business operating in the City shall obtain and maintain a cannabis conditional use permit approved by the Planning Commission in accordance with the procedures set forth in DMC Chapter 18.24.
B.
A cannabis business shall only be allowed to operate in the areas identified in DMC Title 18.
C.
A permittee seeking to amend the conditions of approval of its cannabis conditional use permit shall submit a written request to the Community Development Director and pay applicable processing fees. Amendments that do not substantially change the type or scope of use may be approved by the City Manager. All other amendments shall require a public hearing and Planning Commission approval.
(Ord. 25-006, 11/18/2025)
A.
No applicant shall be granted a cannabis conditional use permit if any of the following findings may be made:
1.
Applicant fails to demonstrate that the proposed cannabis business will comply with operational standards established by this code.
2.
The proposed use is incompatible with surrounding land uses.
3.
Approval of the proposed use would pose a threat to the public health, safety, or welfare.
4.
Applicant or any individual with an ownership of ten percent (10%) or more in applicant, has a history of violations of this code, the DMC, or state law or regulation that would materially impact the proposed operations.
B.
The foregoing list is illustrative and not exhaustive. The Planning Commission may deny a cannabis conditional use permit for any other lawful reason that serves the public health, safety, or welfare.
(Ord. 25-006, 11/18/2025)
A.
A cannabis conditional use permit may be revoked, based on certain findings, including but not limited to if any of the following:
1.
Permittee has violated any condition of approval of the cannabis conditional use permit.
2.
Permittee has violated any term or condition of an approved development agreement.
3.
Permittee's City business license has been revoked, suspended, or otherwise rendered invalid.
4.
Permittee has failed to pay any applicable local tax.
5.
Permittee's applicable state license has been revoked, suspended, or otherwise rendered invalid.
6.
Permittee has violated any provision of the DMC.
7.
Permittee has violated any applicable state or local law or regulation.
B.
Revocation of a cannabis conditional use permit shall be processed in accordance with the procedures set forth in DMC section 18.21.110.
C.
Upon revocation of a cannabis conditional use permit, all cannabis operations on the premises shall immediately cease, and the permittee shall comply with all closure and inventory disposal requirements under this code and state and local law and regulations.
(Ord. 25-006, 11/18/2025)
Upon approval of a cannabis conditional use permit, the Planning Commission may impose conditions in excess of the requirements set forth in this code.
(Ord. 25-006, 11/18/2025)
A.
Permittee shall not operate without a valid conditional use permit, or if its conditional use permit has been revoked, suspended, or otherwise rendered invalid.
B.
Permittee shall comply with all conditions of approval of an approved cannabis conditional use permit.
C.
Permittee shall not operate in violation of the conditions of its conditional use permit. Any such violation constitutes a violation of this code.
D.
Permittee shall not operate without a valid City business license.
E.
Permittee shall not operate in violation of any applicable development agreement.
F.
Permittee shall not operate if any applicable state license has been revoked, suspended, or otherwise rendered invalid.
G.
Permittee shall comply with all state and local laws and regulations.
H.
Permittee shall pay the applicable taxes pursuant to state and local laws.
I.
Permittee shall not make any significant changes to its cannabis business operations without an approved amendment to its cannabis conditional use permit.
(Ord. 25-006, 11/18/2025)
A.
Permittee's premises must be fully compliant with all applicable state and federal laws, rules, and regulations.
B.
Permittee's premises must be fully compliant with all City laws, standards, and requirements, including required development standards such as parking and landscaping.
C.
Permittee's operations shall be conducted within fully enclosed buildings. Operations, including, but not limited to, storage and cultivation of cannabis, shall not be visible from the exterior of any building. There shall be no outdoor storage of any kind on permittee's premises.
D.
Permittee shall not establish, operate, or maintain any cannabis business within a temporary structure.
1.
For purposes of this section, "temporary structure" includes, but is not limited to, tents, trailers, shipping containers, portable buildings, modular units not permanently affixed to a foundation, or any other non-permanent facility or enclosure or structure not designed or appearing as a permanent building.
2.
All cannabis business activities shall occur only within a permanent building that complies with the California Building Code, California Fire Code, and all other applicable laws and regulations.
3.
Cannabis businesses lawfully operating prior to the effective date of this section that utilize a temporary structure may continue such operations temporarily, provided they enter into a development agreement with the City.
4.
The development agreement shall establish a schedule for achieving full compliance with subsection D, which shall not exceed twelve (12) months from the effective date of this section, unless extended by the City Manager (or designee) upon a showing of good cause ("Compliance Period").
5.
During the Compliance Period, the operator shall submit and implement a plan for transition to a permanent structure, including necessary building permits and timelines for construction or relocation.
6.
Failure to meet the approved compliance schedule shall constitute a violation of this Code and may result in suspension or revocation of any cannabis business conditional use permit issued by the City.
7.
Nothing in this section shall be construed to create a vested right to operate in a temporary structure beyond the approved Compliance Period.
E.
No person shall sell, dispense, or consume alcoholic beverages or tobacco products on permittee's premises.
F.
No person shall consume cannabis or cannabis products on the permittee's premises.
G.
Permittee shall take all necessary and reasonable steps to discourage and prevent unlawful or disorderly conduct, including loitering, from occurring on the premises and in the immediate area surrounding the premises during business hours and after closing.
H.
Permittee's premises shall comply with a site plan approved or conditionally approved as part of its cannabis conditional use permit and the required security plan. Permittee's noncompliance with its approved or conditionally approved site plan and security plan constitutes a violation of its cannabis conditional use permit.
(Ord. 25-006, 11/18/2025)
A.
Permittee shall not employ an individual less than twenty-one (21) years of age, nor permit an individual less than twenty-one (21) years of age to volunteer.
B.
Permittee shall not permit individuals less than twenty-one (21) years of age on its premises, unless the individual holds a valid state medical cannabis identification card and is accompanied by a parent, guardian, or caregiver.
(Ord. 25-006, 11/18/2025)
A.
All entrances and exits to buildings on the premises shall be secured with commercial locks or similar measures to prevent unauthorized entry.
B.
Only authorized personnel shall be allowed in areas where cannabis is stored or processed.
C.
Permittee's premises shall have a digital video surveillance system monitoring all entrances, exits, cannabis processing rooms, cannabis point of sale rooms, limited access rooms and security rooms, subject to review and approval of the Dixon Police Department.
1.
Surveillance cameras shall record continuously, twenty-four (24) hours a day.
2.
Surveillance cameras must provide sufficient resolution and color fidelity to identify individuals on the premises.
3.
Surveillance recordings shall be maintained for a minimum of ninety (90) days, stored in such a way that protects the recordings from tampering or theft, and be made available to the City upon request.
D.
Permittees shall ensure a licensed alarm company operator installs, maintains, monitors, and responds to the alarm system.
1.
Upon request, permittee shall make available to the City all information related to the alarm system, monitoring, and alarm activity.
E.
Permittee must store all cannabis, cannabis products, and cannabis waste in locked and secure areas.
F.
Permittee shall comply with the security plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee's noncompliance with its approved or conditionally approved security plan constitutes a violation of its cannabis conditional use permit.
G.
The City may impose additional site-specific security conditions on permittee as necessary to protect public health and safety or to address unique risks associated with the location or type of cannabis operation.
H.
The City Manager, Chief of Police or other designated city officials may require updates or revisions to a permittee's security plan at any time based on operational changes, observed risks, or complaints.
(Ord. 25-006, 11/18/2025)
A.
Permittee's signage shall comply with the sign standards set forth by state laws and regulation and the DMC.
B.
All cannabis businesses shall comply with the following on-site sign requirements in addition to the requirements of the City's sign ordinance as set forth in DMC Chapter 18.18:
1.
Any on-site sign shall be included in the maximum sign area allowed for the property, and may display only the cannabis business's name, logogram, address, hours of operation and contact information, and cannot advertise cannabis or cannabis products.
2.
A cannabis business may install a freestanding sign, subject to the requirements of Chapter 18.18 DMC.
3.
The following types of signs are prohibited: portable signs or sandwich signs located in the public right-of-way, digital signs, spinner signs, illuminated architectural canopy signs, pole signs, marquee signs, roof signs, temporary signs, windblown signs, moving signs and signs with movable parts, and supergraphic signs.
4.
No sign shall contain the use of objects such as toys, inflatables, movie characters, cartoon characters, or include any other display, depiction, or image designed in any manner likely to be appealing to minors or anyone under twenty-one (21) years of age.
5.
No sign shall contain a display, depiction, or image of a cannabis leaf or cannabis plant or paraphernalia.
6.
No sign shall contain a display, depiction, or image of any cannabis accessory or device used to consume cannabis.
7.
Any signs located on the property of any cannabis business that do not conform with these regulations shall be removed by the business within thirty (30) days of the date written notice is provided by the City regarding the violation.
C.
Offsite and temporary signs are prohibited.
D.
Permittee's signs shall be approved as part of the cannabis conditional use permit prior to installation. Changes or modifications to signage require prior written approval from the city manager.
(Ord. 25-006, 11/18/2025)
A.
Permittee shall secure all cannabis waste in a designated area within the premises until properly destroyed or disposed of in compliance with state law. Cannabis waste shall not be placed in regular trash, recycling, or compost containers intended for public use.
B.
Permittee shall maintain records of all cannabis waste disposal activities, including quantities, dates, and responsible parties. Records shall be made available to the City upon request.
C.
Permittee shall comply with the cannabis waste plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee's noncompliance with its approved or conditionally approved cannabis waste plan constitutes a violation of its cannabis conditional use permit.
(Ord. 25-006, 11/18/2025)
A.
Permittee shall install and maintain an odor control system designed to prevent cannabis odors from escaping the interior of the facility. Cannabis odors shall not be detectable at the exterior of the property or within adjacent properties.
B.
Odors from permittee's premises may not unreasonably impact adjacent properties or public areas, consistent with state law and regulation and local nuisance standards.
C.
Permittee shall comply with the odor control plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee's noncompliance with its approved or conditionally approved odor control plan constitutes a violation of its cannabis conditional use permit.
(Ord. 25-006, 11/18/2025)
A.
This section is applicable to permittees granted a cannabis conditional use permit for a cannabis dispensary.
B.
The total number of cannabis conditional use permits issued to cannabis dispensaries shall be limited to two dispensaries, which limitation may be amended by resolution of the city council.
1.
Once the maximum number of cannabis conditional use permits for cannabis dispensaries is reached, no new cannabis conditional use permits for cannabis dispensaries shall be issued until the city council increases the limit on permits or an existing permit is voluntarily surrendered, revoked, or otherwise becomes invalid.
C.
Permittee shall hire or contract for licensed security personnel to provide onsite security services for the premises during the hours of operation.
D.
Permittee shall only sell adult-use cannabis goods to individuals who are at least twenty-one (21) years of age after confirming the customer's age and identity by inspecting a valid form of identification provided by the customer.
E.
Permittee shall only sell medicinal cannabis goods to individuals who are at least eighteen (18) years of age and possess a valid physician's recommendation after confirming the customer's age, identity, physician's recommendation and identification of the individual's parent, guardian, or caregiver.
F.
Permittee shall not make any cannabis goods available for sale unless:
1.
The cannabis goods were received from a licensed cannabis business.
2.
The packaging and labeling of the cannabis goods comply with state law and regulations.
3.
The cannabis goods have not exceeded their best-by, sell-by, or expiration date if one is provided.
4.
The cannabis goods have undergone regulatory compliance testing as required by state law and regulation.
(Ord. 25-006, 11/18/2025)
A.
This section is applicable to permittees granted a cannabis conditional use permit for a cannabis cultivation business.
B.
Outdoor commercial cannabis cultivation is prohibited.
C.
Permittee shall only perform cultivation methods authorized by its cannabis conditional use permit. Any additional cultivation methods may only be conducted with an amendment to a cannabis conditional use permit.
D.
Permittee shall obtain and maintain a valid Wastewater Discharge Permit issued by the City pursuant to Chapter 14.01 of this Code. A violation of a Wastewater Discharge Permit constitutes a violation of a cannabis conditional use permit.
E.
Permittee shall comply with all fire, building, and electrical codes, including specific requirements for flammable solvents, pressurized gases, and chemical storage.
F.
Permittee must obtain and maintain fire safety approval from the City Fire Chief.
G.
Operations shall not create a public or private nuisance, including, but not limited to, noise, odor, lighting, or pest management impacts on neighboring properties.
H.
Permittee shall comply with the cannabis cultivation plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee's noncompliance with its approved or conditionally approved cannabis cultivation plan constitutes a violation of its cannabis conditional use permit.
(Ord. 25-006, 11/18/2025)
A.
This section is applicable to permittees granted a cannabis conditional use permit for a cannabis manufacturing business.
B.
Permittee shall only perform manufacturing methods that were authorized by its cannabis conditional use permit. Any additional manufacturing methods may only be conducted with an amendment to a cannabis conditional use permit.
C.
Permittee shall obtain and maintain a valid Wastewater Discharge Permit issued by the city pursuant to Chapter 14.01 of this Code. A violation of a Wastewater Discharge Permit constitutes a violation of a cannabis conditional use permit.
D.
Permittee shall comply with all fire, building, and electrical codes, including specific requirements for flammable solvents, pressurized gases, and chemical storage.
E.
Permittee must obtain and maintain fire safety approval from the City Fire Chief.
F.
Permittee shall obtain and maintain any required clearance from the County Department of Health prior to commencing operations.
G.
Permittee shall comply with the cannabis manufacturing plan approved or conditionally approved as part of its cannabis conditional use permit. Permittee's noncompliance with its approved or conditionally approved cannabis manufacturing plan constitutes a violation of its cannabis conditional use permit.
(Ord. 25-006, 11/18/2025)
A.
Cannabis delivery is permitted only as an accessory use to a permitted cannabis dispensary with an approved location in Dixon, subject to approval of a cannabis conditional use permit issued pursuant to this code.
B.
All cannabis delivery shall originate and be dispatched from the premises identified and approved under a cannabis conditional use permit.
C.
Prior to providing cannabis or cannabis products to a delivery customer, the permittee shall confirm the identity and age of the delivery customer as required under State law and shall secure a written or electronic signature of the delivery customer before completing the sale.
D.
Cannabis delivery to any person or location within the City by any cannabis retailer whose premises are located outside the City is prohibited. This section shall not be construed to prohibit the transportation of cannabis through the city on public roads by a state licensee in compliance with state law.
(Ord. 25-006, 11/18/2025)
Permittee shall maintain insurance in the amounts and of the types that are acceptable to the City Manager. The City shall be named as additional insured on all City-required insurance policies.
(Ord. 25-006, 11/18/2025)
A.
All cannabis businesses shall be subject to payment of the marijuana business tax pursuant to DMC Section 4.02.035.
B.
Notwithstanding subsection A, a cannabis business may, in lieu of paying the marijuana business tax, enter into a development agreement with the City providing for payment of an in-lieu fee.
1.
The in-lieu fee shall be established through development agreement approved by the City Council.
2.
In no event shall the in-lieu fee exceed fifteen percent (15%) of the cannabis business's gross receipts.
3.
Payment of the in-lieu fee shall constitute full satisfaction of the marijuana business tax obligation to the City for the term of the development agreement, provided the operator remains in compliance with all applicable development agreement terms and conditions.
4.
Failure to make timely payment of the in-lieu fee shall constitute a violation of the development agreement and grounds for revocation.
5.
A cannabis business whose development agreement expires by its own terms or is mutually terminated by the parties shall automatically revert to being subject to the marijuana business tax.
(Ord. 25-006, 11/18/2025)
A.
Each cannabis business shall be subject to an annual review of its cannabis conditional use permit, City business license and, if applicable, development agreement.
B.
The annual review shall be conducted by the Community Development Director who shall provide a written report to the city council. The report shall include, but is not limited to, the following:
1.
Compliance with cannabis conditional use permit conditions;
2.
Compliance with payment of the marijuana business tax;
3.
If applicable, compliance with the development agreements;
4.
Compliance with all applicable local and state laws and regulations;
5.
Review of public safety issues, including security measures and incident reports;
6.
Verification that the cannabis business has not been the subject of repeated complaints or violations related to nuisance, odor, or public safety;
7.
Review of any operational changes.
(Ord. 25-006, 11/18/2025)
A.
The City Manager and any authorized City official or contractor shall have the right to enter the premises of any cannabis business, during regular business hours or at any other reasonable time, to inspect the premises and ensure compliance with this code, any conditions of approval, and state and local law and regulations.
B.
The refusal to allow an inspection authorized under this section shall constitute a violation of this code and grounds for suspension or revocation of any cannabis conditional use permit.
C.
The inspection may include, but is not limited to, examination of the licensed premises, equipment, records, manifests, surveillance systems, and inventory.
D.
Inspections may be unannounced and need not be predicated upon notice or cause.
(Ord. 25-006, 11/18/2025)
A.
The City Manager and any authorized City official shall conduct at least one random financial audit of each permittee within the city every twelve (12) months.
B.
Upon notification of a random financial audit, a permittee shall respond within forty-eight (48) hours and shall cooperate within a reasonable time to provide the City with all requested financial documents related to the operation of the cannabis business.
C.
Permittee's failure to comply with the random financial audit is a violation of this code and grounds for suspension or revocation of its cannabis conditional use permit.
(Ord. 25-006, 11/18/2025)
B.
The amount of fine imposed for violation of this code shall not exceed:
1.
Schedule 1. Five Hundred Dollars ($500) for a first violation.
2.
Schedule 2. Seven hundred and Fifty Dollars ($750) for a second violation of the same code section within one (1) year.
3.
Schedule 3. One Thousand Dollars ($1,000) for each additional violation of the same code section within one (1) year.
C.
The City may suspend, revoke, or modify any cannabis conditional use permit issued upon a finding of violation of this code, state law or regulation, or any condition of approval.
D.
Each violation of this code, or of any term or condition of a cannabis conditional use permit, shall constitute a separate offense.
E.
Any permittee whose cannabis conditional use permit, City business license, or applicable development agreement is revoked shall immediately cease all cannabis-related operations within the City.
F.
If the City determines that a cannabis business poses an immediate threat to public health, safety, or welfare, it may temporarily suspend operations without prior notice.
1.
A hearing before the City Council shall be scheduled as soon as reasonably possible to review the emergency suspension.
G.
In addition to any other remedy, the City may seek injunctive relief and may recover costs of enforcement, including attorneys' fees.
H.
The remedies provided herein are cumulative and in addition to any other remedies available under law.
(Ord. 25-006, 11/18/2025)
A.
Any commercial cannabis use or activity caused or permitted to exist in the City in violation of any provision of this code shall be and is hereby declared a public nuisance and may be abated by the City pursuant to the procedures provided by DMC Chapter 9.01.
C.
The remedies provided in this section are cumulative and do not limit the City's authority to pursue other remedies available under law.
(Ord. 25-006, 11/18/2025)
A.
The City shall be entitled to recover its abatement and enforcement costs incurred in obtaining compliance with this code. Costs incurred by the city are recoverable even if a public nuisance or violation of this code, the DMC or state law or regulation is corrected by the property owner or other responsible party.
B.
The cost of abating a public nuisance or enforcing this code shall either be a special assessment and lien on the subject property or the personal obligation of the owner of the subject property or the responsible party. If there is more than one (1) responsible party, each party shall be jointly and severally liable for the costs.
(Ord. 25-006, 11/18/2025)
Any cannabis business established or operating in the City in violation of this chapter shall not be considered a lawful or permitted nonconforming use, and no such cannabis business shall be eligible for issuance of any permits or approvals under the DMC. Further, any such unlawfully established cannabis business shall constitute a public nuisance subject to abatement by the City.
(Ord. 25-006, 11/18/2025)
Should any provision of this chapter, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.
(Ord. 25-006, 11/18/2025)