City of Adelanto

Regulations for Marijuana Related Commercial Activity

San Bernardino County –> City of Adelanto

City Description

Adelanto is a city in San Bernardino County, California, United States. It is about 9 miles (14 km) northwest of Victorville in the Victor Valley area of the Mojave Desert, known as the northern region of the Inland Empire. The population was 31,765 at the 2010 census.

Updated: 8/4/17

3.60.030 Cannabis Business Operations Requirements.
No person, entity, or business shall engage in any type of Commercial Cannabis Activities in the City without first applying for and receiving an annual Cannabis Permit from the City and paying the City’s monthly Cannabis Business Tax described in this Chapter. Operation of a Cannabis Business in the City without a Cannabis Permit or payment of the Cannabis Business Tax shall constitute a separate violation for each day that that such business is conducted.

[Ord. No. 559, Section 2, 3/6/17.]

3.60.040 Cannabis Business Tax Imposed.
A. The Cannabis Business Tax is a monthly excise tax on each business engaged in any type of Commercial Cannabis Activities licensed or operating within the City based on the gross receipts attributable to that business’s gross receipts earned from Commercial Cannabis Activities within the City in the preceding calendar month.

B. The Cannabis Business Tax shall be in addition to any other fee or tax required under this Code or by any other law.

C. The maximum Cannabis Business Tax Rate approved by the City electorate on November 8, 2016 was five percent. The maximum Cannabis Business Tax Rate is hereby imposed on all Commercial Cannabis Activities. The City Council may establish a different Cannabis Business Tax Rate, or may establish differing Cannabis Business Tax Rates for the different types of Commercial Cannabis Activities, in a separate Ordinance, subject to the maximum voter approved rate of five percent.

[Ord. No. 559, Section 2, 3/6/17.]

3.60.060 Tax Payment Due Date.
Unless otherwise specifically provided, each Cannabis Business Tax provided in this Chapter shall be due and payable within 15 days of the conclusion of each calendar month. The Cannabis Business Tax shall be deemed delinquent if not paid on or before the due date specified in this Section.

[Ord. No. 559, Section 2, 3/6/17.]

3.60.070 Method of Payment.
Cannabis Business Taxes shall be paid at the designated service counter at City Hall in lawful money of the United States. Lawful money shall mean any currency, or negotiable instrument exchangeable for said currency, that the United States Congress has declared to be a national legal tender.

[Ord. No. 559, Section 2, 3/6/17.]

3.60.140 Unlawful Activity.
The payment of any Cannabis Business Tax pursuant to this Chapter shall not be construed as authorizing any unlawful activity. All Commercial Cannabis Activities must comply with all laws, including, but not limited to, local laws such as certificate of occupancy requirements, zoning compliance, and permits from all applicable government entities.

[Ord. No. 559, Section 2, 3/6/17.]

CULTIVATION

APPROVED

17.80.080 Cultivation of Medical Marijuana.

(c) Marijuana Cultivation Prohibited. All marijuana cultivation within the City is prohibited except as expressly permitted by this Section.

(d) Indoor Medical Marijuana Cultivation Conditionally Permitted. Indoor medical marijuana cultivation is conditionally permitted in the City only as expressly specified in this Section.

(1) Indoor medical marijuana cultivation standards. Indoor medical marijuana cultivation, within the City, shall be in conformance with the following standards:

A. Indoor medical marijuana cultivation shall only be allowed upon application and approval of a Cultivation Permit and a CUP, or Minor Conditional Use Permit (CUPm) for proposed uses within existing buildings requiring no more than Tenant Improvements, in accordance with the criteria and process set forth in this Section and this Code.

B. Indoor medical marijuana cultivation is a conditionally permitted use only on properties within the Manufacturing/Industrial (MI) zoning designation in the Industrial Park, and the Light Manufacturing (“LM”) zoning designation subject to the locational requirements in Section 17.80.080(d)(1)(C) and restricted to the area bounded by Air Expressway to the north, Yucca Road to the south, Raccoon Avenue to the east, and Koala Road to the west (“Cannabis Zone”).

C. No marijuana cultivation shall be established, developed, or operated within two thousand five hundred (2,500) feet of a school, public playground or park, child care or day care facility, youth center, or church. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the indoor medical marijuana cultivation is, or will be located, to the nearest property line of those uses describe in this Subsection.

D. Indoor medical marijuana cultivation facilities may be located within the same building or structure as a medical marijuana manufacturing facility only if the indoor medical marijuana cultivation facility is located in separate rooms of the building or structure, and only if the indoor medical marijuana cultivation facility has its own separate entrance into the building or structure.

E. Subject to the further requirements of this Section, only the following State cultivator license classification types specified in the MMRSA and Business and Professions Code Sections 19300.7 and 19332 will be allowed to operate in the City: 1A, IB, 2A, 2B, 3A, 3B, and 4.

F. Indoor medical marijuana cultivation is allowed only within fully enclosed and secure structures that are inaccessible to minors.

G. Indoor medical marijuana cultivation shall not exceed the square footage authorized pursuant to the CUP.

H. From any public right-of-way, there shall be no visible exterior evidence of any indoor medical marijuana cultivation activity.

I. Indoor medical marijuana cultivation activity may include growing marijuana plants, harvesting marijuana plants, and drying marijuana flowers, but shall not include any extraction procedures to produce concentrated THC.

J. Indoor medical marijuana cultivation shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes.

K. All indoor medical marijuana cultivation facilities shall fully comply with all of the applicable restrictions and mandates set forth in State law. All indoor medical marijuana cultivation facilities shall comply with all size requirements for such facilities as imposed by State law. Indoor medical marijuana cultivation facilities shall not engage in any activities not allowed by indoor medical marijuana cultivation facilities pursuant to State law. All indoor medical marijuana cultivation facilities shall comply with all horticultural, labeling, processing, and other standards required by State law.

L. There is no set restriction on the hours of operation of indoor medical marijuana cultivation facilities; however, restricted hours of operation may be established as a condition of approval of the cultivation permit or the applicable CUP.

M. All medical marijuana shall be kept in a secured manner during all business and nonbusiness hours.

N. All indoor medical marijuana cultivation facilities shall operate within a legal structure that is compliant with all applicable State and local laws.

O. All indoor medical marijuana cultivation facilities must pay all applicable sales taxes pursuant to all federal, State, and local laws.

P. On-site smoking, ingestion, or consumption of marijuana or alcohol shall be prohibited on the premises of all indoor medical marijuana cultivation facilities. The term “premises” as used in this Subsection includes the actual indoor medical marijuana cultivation building, as well as any accessory structures and parking areas. The indoor medical marijuana cultivation facility building entrance shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming marijuana or alcohol on the premises or in the vicinity of the facility is prohibited.

Q. Signage for all indoor medical marijuana cultivation facilities shall be limited to name of business only, shall be in compliance with the City’s sign code, and shall contain no advertising of any companies, brands, products, goods, or services. Signage shall not include any drug-related symbols.

R. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. Indoor medical marijuana cultivation facilities shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any indoor medical marijuana cultivation facility.

S. Physician services shall not be provided on the premises. “Physician services” does not include social services, including counseling, help with housing and meals, hospice and other care referrals which may be provided on site.

T. The building in which any indoor medical marijuana cultivation facility is located, as well as the operations as conducted therein, shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City’s business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the MMRSA. Compliance with all requirements of State law pertaining to indoor marijuana cultivation is also required.

U. Indoor medical marijuana cultivation facilities shall not distribute, sell, dispense, or administer marijuana from the facility to the public. Indoor medical marijuana cultivation facilities shall not be operated as medical marijuana dispensaries.

V. The operators of all indoor medical marijuana cultivation facilities shall provide the City Manager or the City Manager’s designee with the name, phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the indoor medical marijuana cultivation facility. All indoor medical marijuana cultivation facilities shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.

W. All indoor medical marijuana cultivation facilities shall be operated in accordance with the conditions of approval associated with the applicable CUP for the parcel of real property upon which the indoor medical marijuana cultivation activities occur.

X. All indoor medical marijuana cultivation facilities shall have a security plan including the following measures:

1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least one hundred twenty (120) concurrent hours of digitally recorded documentation in a format approved by the City Manager or the City Manager’s designee. The cameras shall be in use twenty-four (24) hours per day, seven (7) days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, cultivation areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager’s designee. Remote log-in information shall be provided to the City Manager and the Chief of Police to allow them to view the security camera images and recordings from their own facilities at any time. Any disruption in security camera images shall be cured expeditiously in good faith.

2. The indoor medical marijuana cultivation facility shall be alarmed with an alarm system that is operated and monitored by a reputable security company.

3. Entrance to the cultivation area, and all storage areas, shall be locked at all times, and under the control the indoor medical marijuana cultivation facility’s staff.

4. The entrances and all window areas shall be illuminated during evening hours. The facility shall comply with the City’s lighting standards regarding fixture type, wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting approvals and permits as needed.

5. All windows on the building that houses the indoor medical marijuana cultivation facility shall be appropriately secured and all marijuana securely stored.

Y. Recordings made by the security cameras shall be made available to the City Manager, the City Manager’s designee, or law enforcement upon verbal request-no search warrant or subpoena shall be needed to view the recorded materials.

Z. The City Manager, the City Manager’s designee, and law enforcement shall have the right to enter the indoor medical marijuana cultivation facility at any time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and the State.

AA. All batches of final cultivated marijuana must be inspected and quality tested by a qualified third party distributor and testing facility prior to distribution to a dispensary as required by the MMRSA, Business and Professions Code Sections 19326 and 19342, the Department of Food and Agriculture regulations, and the State Department of Public Health regulations.

(2) Cultivation permit applications. All applicants wishing to obtain a cultivation permit from the City shall file an application with the City upon a form provided by the City and shall pay a cultivation permit application fee as established by the City. An application for a cultivation permit shall include at least the following information:

A. An estimate of the size of the proposed indoor medical marijuana cultivation facility.

B. The address of the location for which the cultivation permit is sought. Only one cultivation permit will be issued per location.

C. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, cultivation areas, lighting, signage, etcetera.

D. A proposed security plan in compliance with the indoor Medical Marijuana Cultivation Standards.

E. The names, addresses, and relevant criminal histories of all potential employees, facility managers, and other relevant parties for the indoor medical marijuana cultivation facility. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

F. The name and address of the owner and lessor of the real property upon which the indoor medical marijuana cultivation activity is proposed to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that an indoor medical marijuana cultivation facility will be operated on the property.

G. Authorization for the City Manager or the City Manager’s designee to seek verification of the information contained within the application.

H. Evidence that the indoor medical marijuana cultivation facility will be located in a legal structure that is compliant with all applicable State and local laws.

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

J. Any such additional and further information as is deemed necessary by the City Manager or the City Manager’s designee to administer this Section.

K. The City Manager or the City Manager’s designee shall conduct a background check of any applicant seeking a cultivation permit, including all potential employees and any person who may be a facility manager or otherwise responsible for the activities of the indoor medical marijuana cultivation facility (“applicant’s agents”), and shall prepare a report on the acceptability of the applicant and the applicant’s agents and the suitability of the proposed location.

L. The City Manager or the City Manager’s designee shall rank all qualified applications in order of those that best satisfy the requirements of this Section and provide the highest level of service and opportunities for residents of the City based on the requirements of this Section and the following criteria (“Merit List”):
1. The operational plan for the facility.
2. The security plan for the facility.
3. The experience of the operators of the facility.
4. The adequacy of capitalization for the facility and its operations.
5. The employment of City residents and other public benefits to the City.

(3) Cultivation permit. The following conditions apply to all cultivation permits:

A. A cultivation permit will not be awarded to an applicant if:
1. The applicant or the applicant’s agents made one or more false or misleading statements or omissions in the application or during the application process.
2. The proposed indoor medical marijuana cultivation facility is not allowed by State or local law.
3. The applicant is not a legal representative of the indoor medical marijuana cultivation facility.
4. The applicant or the applicant’s agents have been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, transportation, distribution, or any such similar activity related to controlled substances, with the exception of marijuana related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
5. The applicant or the applicant’s agents have engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
6. The applicant has not satisfied each and every requirement of this Section.

B. Cultivation permits shall be awarded by the City to eligible cultivation permit applicants in order of the Merit List as established by the City Manager or the City Manager’s designee. The number of cultivation permits shall be limited to those that may be reasonably accommodated within the Cultivation Zone.

C. Before a cultivation permit can be issued to an applicant, cultivation permit fees must be paid to offset all related costs to the City, and the proposed indoor medical marijuana cultivation facility location must pass all applicable inspections.

D. Only one cultivation permit may be possessed or used by the same person or entity, including the representatives, agents, parent entities, or subsidiary entities of that person or entity.

E. All cultivation permits are subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the indoor medical marijuana cultivation activity occurs.

F. All cultivation permits are subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the activity and protect the public.

G. All cultivation activities shall be subject to an excise tax to be established by the City and the voters.

H. Cultivation permitees may not hold or use any other marijuana activity permits or licenses that would otherwise be a violation of the MMRSA or Business and Professions Code Section 19328.

I. All cultivation permitees shall enter into an agreement with the City to fully reimburse the City for all fiscal impacts, costs, expenses, fees, and attorneys’ fees incurred by the City related to the cultivation permit and the indoor medical marijuana cultivation activity.

J. All cultivation permitees shall:
1. Carry liability insurance in the amounts and types set by the City Manager or the City Manager’s designee, and name the City as an additional insured on all such insurance policies.
2. Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the cultivation permit, the cultivation permitee’s marijuana related activities, and any action taken by the cultivation permitee pursuant to this Section.
3. Agree to defend the City, at the cultivation permitee’s sole expense, in any action against the City or its agents, officers, or employees associated with the cultivation permit, the cultivation permitee’s marijuana related activities, or any action taken by the cultivation permitee pursuant to this Section.
4. Agree to reimburse the City for all costs, expenses, fees, and attorney fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the Cultivation Permit, the Cultivation Permitee’s marijuana related activities, or any action taken by the Cultivation Permitee pursuant to this Section. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.

K. All cultivation permitees shall keep the City and law enforcement updated with the names, addresses, and relevant criminal histories of all employees, facility managers, and other relevant parties for the indoor medical marijuana cultivation facility at all times. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

L. All cultivation permitees shall account for job creation in the City and shall commit to employing a workforce that resides in the City. A minimum of fifty (50) percent of all employees employed by the cultivation permitee at the indoor medical marijuana cultivation facility shall be residents of the City. All cultivation permitees shall use good faith efforts to comply with this subsection and shall report the residential composition of their workforce to the City every year and at any other time upon demand by the City Manager or the City Manager’s designee.

M. Cultivation permits issued pursuant to this Section are not transferable to any third parties under any circumstances.

N. All cultivation permits shall expire and be null and void twelve (12) months after issuance to the cultivation permitee unless properly renewed. Upon payment of the applicable cultivation permit fees and passing the requisite cultivation permit inspections, Cultivation permitees that have maintained compliance with all City, State, and other applicable marijuana and business related laws shall be entitled to renew their cultivation permit subject to all prevailing laws at the time of renewal.

O. To the tidiest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any medical marijuana cultivation activities or for the activities of any indoor medical marijuana cultivation facility.

(4) Conditional use permit. All parcels of real property in the Cultivation Zone upon which indoor medical marijuana cultivation activities may occur must obtain a CUP from the City for all such activities.

(5) Oversight Committee. The City shall create an Oversight Committee to oversee activities of the cultivation permitees to ensure that all applicable local, State, and federal laws are complied with, and that all provisions of this Section are enforced, and that no illegal activity is conducted on the indoor medical marijuana cultivation properties. The Oversight Committee shall have full authority to review all proposed applications, applicants, business proposals, financial resources, Merit Lists, and overall business plans when deciding which entities will receive cultivation permits as outlined herein. The Oversight Committee shall be appointed by the City Council and shall consist of five (5) total members with one (1) member from code enforcement, one (1) member from planning, and three (3) at-large appointments.

(e) Enforcement.
(1) Any marijuana cultivation within the City in violation of this Section is hereby declared to be unlawful and a public nuisance.

(2) Any party who engages in a violation of this Section, or who owns, possess, controls, or has charge of any parcel of real property in the City upon which a violation of the Section is maintained, shall be subject to the penalties and remedies provided by this Section.

(3) Any violation of this Section shall constitute a separate offense for each and every day the violation occurs or persists.

(4) Any person in violation of any provision of this Section shall be guilty of a misdemeanor and shall be punishable by a fine of up to one thousand ($1,000) and up to six (6) months imprisonment per offense.

(5) Any person in violation of any provision of this Section shall be punishable by an administrative fine of up to a one thousand dollars ($1,000) per offense.

(6) Any violation of this Section or any other City or State marijuana law by a cultivation permitee or a cultivation permitee’s agent is grounds for revoking the cultivation permitee’s cultivation permit. In addition, the City Manager or the City Manager’s designee may revoke a cultivation permit if any of the following occur:
A. The City Manager or the City Manager’s designee determines that the indoor medical marijuana cultivation facility has failed to comply with this Section, any condition of approval, or any agreement or covenant as required pursuant to this Section.
B. The indoor medical marijuana cultivation operations cease for more than ninety (90) calendar days.
C. Ownership of the indoor medical marijuana cultivation facility is changed or transferred to third party.
D. The indoor medical marijuana cultivation facility fails to maintain one hundred twenty (120) hours of security recordings.
E. The indoor medical marijuana cultivation facility fails to provide remote access to the security cameras to the City Manager, the City Manager’s designee, or the Chief of Police, or fails to allow inspection of the security recordings, the activity logs, or of the premise by authorized City officials.

(7) Any decision regarding the revocation of a cultivation permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager’s designee (“Hearing Officer”). Said appeal shall be made by a notice of appeal from the person appealing within fifteen (15) days from the date of the decision. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the cultivation permit was improperly revoked. The Hearing Officer’s decision shall be final and binding upon the City and the appellant.

(8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.

[Ord. No. 539, Section 2, 11/23/15; Ord. No. 545, Section 2, 5/25/16; Ord. No. 556, Section 2, 12/14/16; Ord. No. 558, Section 2, 12/14/16.]

MANUFACTURING

APPROVED

17.80.090 Manufacturing of Medical Marijuana

(c) Marijuana Manufacturing Prohibited. All marijuana manufacturing within the City is prohibited except as expressly permitted by this Section.

(d) Medical Marijuana Manufacturing Conditionally Permitted. Medical marijuana manufacturing is conditionally permitted in the City only as expressly specified in this Section.

(1) Medical marijuana manufacturing standards. Medical marijuana manufacturing, within the City, shall be in conformance with the following standards:

A. Medical marijuana manufacturing shall only be, allowed upon application and approval of a manufacturing permit and a CUP, or Minor Conditional Use Permit (CUPm) for proposed uses within existing buildings requiring no more than Tenant Improvements, in accordance with the criteria and process set forth in this Section and this Code.

B. Medical marijuana manufacturing is a conditionally permitted use only on properties within the Manufacturing/Industrial (MI) zoning designation in the Industrial Park, and the Light Manufacturing (“LM”) zoning designation subject to the locational requirements in Section 17.80.090(d)(1)(C) and restricted to the area bounded by Air Expressway to the north, Yucca Road to the south, Raccoon Avenue to the east, and Koala Road to the west (“Cannabis Zone”).

C. No marijuana manufacturing shall be established, developed, or operated within two thousand five hundred (2,500) feet of a school, public playground or park, child care or day care facility, youth center, or church. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the medical marijuana manufacturing is, or will be located, to the nearest property line of those uses describe in this Subsection.

D. Medical marijuana manufacturing facilities may be located within the same building or structure as an indoor medical marijuana cultivation facility only if the medical marijuana manufacturing facility is located in separate rooms of the building or structure, and only if the medical marijuana manufacturing facility has its own separate entrance into the building or structure.

E. Subject to the further requirements of this Section, only State manufacturer license classification type 6 level 1 will be allowed to operate in the City using nonvolatile solvents in accordance with the MMRSA and Business and Professions Code Sections 19300.7 and 19341.

F. Medical marijuana manufacturing is allowed only within fully enclosed and secure structures that are inaccessible to minors.

G. Medical marijuana manufacturing shall not exceed the square footage authorized pursuant to the CUP.

H. From any public right-of-way, there shall be no visible exterior evidence of any medical marijuana manufacturing activity.

I. Medical marijuana manufacturing shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes.

J. All medical marijuana manufacturing facilities shall fully comply with all of the applicable restrictions and mandates set forth in State law. All medical marijuana manufacturing facilities shall comply with all size requirements for such facilities as imposed by State law. Medical marijuana manufacturing facilities shall not engage in any activities not allowed by medical marijuana manufacturing facilities pursuant to State law. All medical marijuana manufacturing facilities shall comply with all horticultural, labeling, processing, and other standards required by State law.

K. There is no set restriction on the hours of operation of medical marijuana manufacturing facilities; however, restricted hour’s of operation may be established as a condition of approval of the manufacturing permit or the applicable CUP.

L. All medical marijuana shall be kept in a secured manner during all business and nonbusiness hour’s.

M. All medical marijuana manufacturing facilities shall operate within a legal structure that is compliant with all applicable State and local laws.

N. All medical marijuana manufacturing facilities must pay all applicable sales taxes pursuant to all federal, State, and local laws.

O. On-site smoking, ingestion, or consumption of marijuana or alcohol shall be prohibited on the premises of all medical marijuana manufacturing facilities. The term “premises” as used in this Subsection includes the actual medical marijuana manufacturing building, as well as any accessory structures and parking areas. The medical marijuana manufacturing facility building entrance shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming marijuana or alcohol on the premises or in the vicinity of the facility is prohibited.

P. Signage for all medical marijuana manufacturing facilities shall be limited to name of business only, shall be in compliance with the City’s sign code, and shall contain no advertising of any companies, brands, products, goods, or services. Signage shall not include any drug-related symbols.

Q. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. Medical marijuana manufacturing facilities shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any medical marijuana manufacturing facility.

R. Physician services shall not be provided on the premises. “Physician services” does not include social services, including counseling, help with housing and meals, hospice and other care referrals which may be provided on site.

S. The building in which any medical marijuana manufacturing facility is located, as well as the operations as conducted therein, shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City’s business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the MMRSA. Compliance with all requirements of State law pertaining to medical marijuana manufacturing is also required.

T. Medical marijuana manufacturing facilities shall not distribute, sell, dispense, or administer marijuana from the facility to the public. Medical marijuana manufacturing facilities shall not be operated as medical marijuana dispensaries.

U. The operators of all medical marijuana manufacturing facilities shall provide the City Manager or the City Manager’s designee with the name, phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the medical marijuana manufacturing facility. All medical marijuana manufacturing facilities shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.

V. All medical marijuana manufacturing facilities shall be operated in accordance with the conditions of approval associated with the applicable CUP for the parcel of real property upon which the medical marijuana manufacturing activities occur.

W. All medical marijuana manufacturing facilities shall have a security plan including the following measures:
1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least one hundred twenty (120) concurrent hours of digitally recorded documentation in a format approved by the City Manager or the City Manager’s designee. The cameras shall be in use twenty-four (24) hours per day, seven (7) days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, manufacturing areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager’s designee. Remote log-in information shall be provided to the City Manager and the Chief of Police to allow them to view the security camera images and recordings from their own facilities at any time. Any disruption in security camera images shall be cured expeditiously in good faith.
2. The medical marijuana manufacturing facility shall be alarmed with an alarm system that is operated and monitored by a reputable security company.
3. Entrance to the manufacturing area, and all storage areas, shall be locked at all times, and under the control the medical marijuana manufacturing facility’s staff.
4. The entrances and all window areas shall be illuminated during evening hours. The facility shall comply with the City’s lighting standards regarding fixture type, wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting approvals and permits as needed.
5. All windows on the building that houses the medical marijuana manufacturing facility shall be appropriately secured and all marijuana securely stored.

X. Recordings made by the security cameras shall be made available to the City Manager, the City Manager’s designee, or law enforcement upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials.

Y. The City Manager, the City Manager’s designee, and law enforcement shall have the right to enter the medical marijuana manufacturing facility at any time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and the State.

Z. All medical marijuana manufacturing facilities must employ full time quality control personnel. The manufacturing permitee must establish Standard Operating Procedures and Batch Records that comply with current Good Manufacturing Practices and the MMRSA for all food products, as outlined by the State Department of Public Health and the Food and Drug Administration.

AA. All finished products produced by a medical marijuana manufacturing facility must be labeled in compliance with the MMRSA, Business and Profession Code Section 19347, and the labeling requirements outlined by the State Department of Public Health.

BB. All finished products produced by a medical marijuana manufacturing facility must be packaged in child resistant containers prior to leaving the facility or becoming commercially available in accordance with the MMRSA, Business and Profession Code Section 19347, the State Department of Public Health regulations, and other applicable State laws.

CC. All batches of final marijuana products must be tested by a qualified third party testing facility prior to distribution to a dispensary as required by the MMRSA, Business and Professions Code Sections 19326, 19341, and 19342, and the State Department of Public Health regulations.

DD. Medical marijuana manufacturing facilities shall only use nonvolatile solvents that have been approved by the State Department of Public Health for medical marijuana level 1 manufacturing. Until such time as any such nonvolatile solvents are approved by the State Department of Public Health for medical marijuana level 1 manufacturing, medical marijuana manufacturing facilities shall only use nonvolatile solvents that have been approved by the Food and Drug Administration for the processing and preparation of botanical dietary supplements or food grade products.

EE. All processing and analytical testing devises used for medical marijuana manufacturing facilities must be UL listed, or otherwise approved for the intended use by the City’s Building Official or the Fire Department. Any processing devices using only non-pressurized water are exempt from such approval.

FF. Unless otherwise prohibited, all processing devices used by a medical marijuana manufacturing facility that utilize hydrocarbons or otherwise flammable solvents must operate in a closed loop, or in such a way that all solvent material is recovered in the process. All hazardous material must be disposed of in a manner which is compliant with all local, State, and federal guidelines for the disposal of hazardous materials.

(2) Manufacturing permit applications. All applicants wishing to obtain a manufacturing permit from the City shall file an application with the City upon a form provided by the City and shall pay a manufacturing permit application fee as established by the City. An application for a manufacturing permit shall include at least the following information:

A. An estimate of the size of the proposed medical marijuana manufacturing facility.

B. The address of the location for which the manufacturing permit is sought. Only one manufacturing permit will be issued per location.

C. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, manufacturing areas, lighting, signage, etcetera.

D. A proposed security plan in compliance with the Medical Marijuana Manufacturing Standards.

E. The names, addresses, and relevant criminal histories of all potential employees, facility managers, and other relevant parties for the medical marijuana manufacturing facility. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

F. The name and address of the owner and lessor of the real property upon which the medical marijuana manufacturing activity is proposed to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a medical marijuana manufacturing facility will be operated on the property.

G. Authorization for the City Manager or the City Manager’s designee to seek verification of the information contained within the application.

H. Evidence that the medical marijuana manufacturing facility will be located in a legal structure that is compliant with all applicable State and local laws.

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

J. Any such additional and further information as is deemed necessary by the City Manager or the City Manager’s designee to administer this Section.

K. The City Manager or the City Manager’s designee shall conduct a background check of any applicant seeking a manufacturing permit, including all potential employees and any person who may be a facility manager or otherwise responsible for the activities of the medical marijuana manufacturing facility (“applicant’s agents”), and shall prepare a report on the acceptability of the applicant and the applicant’s agents and the suitability of the proposed location.

L. The City Manager or the City Manager’s designee shall rank all qualified applications in order of those that best satisfy the requirements of this Section and provide the highest level of service and opportunities for residents of the City based on the requirements of this Section and the following criteria (“Merit List”):
1. The operational plan for the facility.
2. The security plan for the facility.
3. The experience of the operators of the facility.
4. The adequacy of capitalization for the facility and its operations.
5. The employment of City residents and other public benefits to the City.

(3) Manufacturing permit. The following conditions apply to all manufacturing permits:

A. A manufacturing permit will not be awarded to an applicant if:
1. The applicant or the applicant’s agents made one or more false or misleading statements or omissions in the application or during the application process.
2. The proposed medical marijuana manufacturing facility is not allowed by State or local law.
3. The applicant is not a legal representative of the medical marijuana manufacturing facility.
4. The applicant or the applicant’s agents have been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, transportation, distribution, or any such similar activity related to controlled substances, with the exception of marijuana related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
5. The applicant or the applicant’s agents have engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
6. The applicant has not satisfied each and every requirement of this Section.

B. Manufacturing permits shall be awarded by the City to eligible manufacturing permit applicants in order of the Merit List as established by the City Manager or the City Manager’s designee. The number of manufacturing permits shall be limited to those that may be reasonably accommodated within the Manufacturing Zone.

C. Before a manufacturing permit can be issued to an applicant, manufacturing permit fees must be paid to offset all related costs to the City, and the proposed medical marijuana manufacturing facility location must pass all applicable inspections.

D. Only one manufacturing permit may be possessed or used by the same person or entity, including the representatives, agents, parent entities, or subsidiary entities of that person or entity.

E. All manufacturing permits are subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the medical marijuana manufacturing activity occurs.

F. All manufacturing permits are subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the activity and protect the public.

G. All manufacturing activities shall be subject to an excise tax to be established by the City and the voters.

H. Manufacturing permitees may not hold or use any other marijuana activity permits or licenses that would otherwise be a violation of the MMRSA or Business and Professions Code Section 19328.

I. All manufacturing permitees shall enter into an agreement with the City to fully reimburse the City for all fiscal impacts, costs, expenses, fees, and attorneys’ fees incurred by the City related to the manufacturing permit and the medical marijuana manufacturing activity.

J. All manufacturing permitees shall:
1. Carry liability insurance in the amounts and types set by the City Manager or the City Manager’s designee, and name the City as an additional insured on all such insurance policies.
2. Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the manufacturing permit, the manufacturing permitee’s marijuana related activities, and any action taken by the manufacturing permitee pursuant to this Section.
3. Agree to defend the City, at the manufacturing permitee’s sole expense, in any action against the City or its agents, officers, or employees associated with the manufacturing permit, the manufacturing permitee’s marijuana related activities, or any action taken by the manufacturing permitee pursuant to this Section.
4. Agree to reimburse the City for all costs, expenses, fees, and attorney fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the manufacturing permit, the manufacturing permitee’s marijuana related activities, or any action taken by the manufacturing permitee pursuant to this Section. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.

K. All manufacturing permitees shall keep the City and law enforcement updated with the names, addresses, and relevant criminal histories of all employees, facility managers, and other relevant parties for the medical marijuana manufacturing facility at all times. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

L. All manufacturing permitees shall account for job creation in the City and shall commit to employing a workforce that resides in the City. A minimum of fifty (50) percent of all employees employed by the manufacturing permitee at the medical marijuana manufacturing facility shall be residents of the City. All manufacturing permitees shall use good faith efforts to comply with this Subsection and shall report the residential composition of their workforce to the City every year and at any other time upon demand by the City Manager or the City Manager’s designee.

M. Manufacturing permits issued pursuant to this Section are not transferable to any third parties under any circumstances.

N. All manufacturing permits shall expire and be null and void 12 months after issuance to the manufacturing permitee unless properly renewed. Upon payment of the applicable manufacturing permit fees and passing the requisite manufacturing permit inspections, manufacturing permitees that have maintained compliance with all City, State, and other applicable marijuana and business related laws shall be entitled to renew their manufacturing permit subject to all prevailing laws at the time of renewal.

O. To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any medical marijuana manufacturing activities or for the activities of any medical marijuana manufacturing facility.
(4) Conditional use permit. All parcels of real property in the Manufacturing Zone upon which medical marijuana manufacturing activities may occur must obtain a CUP from the City for all such activities.

(e) Enforcement.

(1) Any marijuana manufacturing within the City in violation of this Section is hereby declared to be unlawful and a public nuisance.

(2) Any party who engages in a violation of this Section, or who owns, possess, controls, or has charge of any parcel of real property in the City upon which a violation of the Section is maintained, shall be subject to the penalties and remedies provided by this Section.

(3) Any violation of this Section shall constitute a separate offense for each and every day the violation occurs or persists.

(4) Any person in violation of any provision of this Section shall be guilty of a misdemeanor and shall be punishable by a fine of up to one thousand dollars ($1,000) and up to six (6) months imprisonment per offense.

(5) Any person in violation of any provision of this Section shall be punishable by an administrative fine of up to a one thousand dollars ($1,000) per offense

(6) Any violation of this Section or any other City or State marijuana law by a manufacturing permitee or a manufacturing permitee’s agent is grounds for revoking the manufacturing permitee’s manufacturing permit. In addition, the City Manager or the City Manager’s designee may revoke a manufacturing permit if any of the following occur:

A. The City Manager or the City Manager’s designee determines that the medical marijuana manufacturing facility has failed to comply with this Section, any condition of approval, or any agreement or covenant as required pursuant to this Section.

B. The medical marijuana manufacturing operations cease for more than 90 calendar days.

C. Ownership of the medical marijuana manufacturing facility is changed or transferred to third party.

D. The medical marijuana manufacturing facility fails to maintain one hundred twenty (120) hours of security recordings.

E. The medical marijuana manufacturing facility fails to provide remote access to the security cameras to the City Manager, the City Manager’s designee, or the Chief of Police, or fails to allow inspection of the security recordings, the activity logs, or of the premise by authorized City officials.

(7) Any decision regarding the revocation of a manufacturing permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager’s designee (“Hearing Officer”). Said appeal shall be made by a notice of appeal from the person appealing within fifteen (15) days from the date of the decision. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the manufacturing permit was improperly revoked. The Hearing Officer’s decision shall be final and binding upon the City and the appellant.

(8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.

[Ord. No. 545, Section 2, 5/25/16; Ord. No. 556, Section 3, 12/14/16; Ord. No. 558, Section 3, 12/14/16.]

RETAIL

BANNED

17.80.050 Medical Marijuana Dispensaries.

A medical marijuana dispensary, as defined in Section 17.200.140 of this Title, is not an allowable use within any zone in the City of Adelanto and is expressly prohibited in all zones. No other definition or term utilized herein shall be interpreted to allow such use. Each individual zone in the City of Adelanto is hereby updated to prohibit medical marijuana dispensaries.

[Ord. No. 498, Section 3, 6/23/10; Ord. No. 515, Exhibit K, 5/22/13; Ord No. 528, Exhibit Q, 9/10/14.]


17.80.100 Medical Cannabis Distribution/Transportation

(c) Cannabis Distribution and Transportation Prohibited. All cannabis distribution and transportation within the City is prohibited except as expressly permitted by this Section.

(d) Distribution and Transportation of Medical Cannabis Conditionally Permitted. Distribution and transportation of medical cannabis is conditionally permitted in the City only as expressly specified in this Section.

(1) Medical Cannabis Distribution/Transportation Standards. Medical cannabis distribution and transportation within the City shall be in conformance with the following standards:

A. Medical cannabis distribution and transportation shall only be allowed upon application and approval of a Distribution/ Transportation Permit and a CUP, or Minor Conditional Use Permit (CUPm) for proposed uses within existing buildings requiring no more than Tenant Improvements, in accordance with the criteria and process set forth in this Section and this Code.

B. Medical cannabis distribution and transportation is a conditionally permitted use only on properties within the Manufacturing/ Industrial (MI) zoning designation in the Industrial Park, and the Light Manufacturing (“LM”) zoning designation subject to the locational requirements in Section 17.80.100(d)(1)(D) and restricted to the area bounded by Air Expressway to the north, Yucca Road to the south, Raccoon Avenue to the east, and Koala Road to the west (“Cannabis Zone”).

C. Medical cannabis distribution and transportation activities may include the receiving and releasing of cannabis plants, flowers, and products for inspection, testing, and quality assurance.

D. No cannabis distribution or transportation shall be established, developed, or operated within 2,500 feet of a school, public playground or park, child care or day care facility, youth center, or church, except for shipping activities, which must follow to established commercial trucking routes. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the cannabis distribution or transportation activity is, or will be, located to the nearest property line of those uses describe in this Subsection.

E. Cannabis distribution and transportation may not be located within the same unit of a building or structure as an indoor cannabis cultivation facility, manufacturing facility, testing facility, or dispensary.

F. Subject to the further requirements of this Section, only State distributor license classification type 11, and State transporter license classification type 12, will be allowed to operate in the City in accordance with the MCRSA and Business and Professions Code sections 19300.7 and 19334.

G. Medical cannabis distribution and transportation is allowed only within fully enclosed and secure structures that are inaccessible to minors.

H. Except for commercial shipping operations, medical cannabis distribution and transportation activities shall not exceed the square footage authorized pursuant to the applicable CUP.

I. From any public right-of-way, there shall be no visible exterior evidence of any cannabis distribution or transportation activity.

J. Cannabis distribution and transportation shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes.

K. All cannabis distribution and transportation facilities shall fully comply with all of the applicable restrictions and mandates set forth in State law. All cannabis distribution and transportation facilities shall comply with all size requirements for such facilities as imposed by State law. Cannabis distribution and transportation facilities shall not engage in any activities not allowed by medical cannabis distribution or transportation facilities pursuant to State law. All cannabis distribution and transportation facilities shall comply with all horticultural, labeling, processing, and other standards required by State law.

L. There is no set restriction on the hours of operation of medical cannabis distribution and transportation facilities; however, restricted hours of operation may be established as a condition of approval of the Distribution/Transportation Permit or the applicable CUP.

M. All cannabis shall be kept in a secured manner during all business and nonbusiness hours.

N. All cannabis distribution and transportation facilities shall operate within a legal structure that is compliant with all applicable State and local laws.

O. All cannabis distribution and transportation facilities must pay all applicable sales taxes pursuant to all federal, State, and local laws.

P. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited on the premises of all cannabis distribution and transportation facilities. The term “premises” as used in this Subsection includes the actual cannabis distribution or transportation building, as well as any accessory structures and parking areas. The cannabis distribution or transportation facility building entrance shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming cannabis or alcohol on the premises, or in the vicinity of the facility, is prohibited.

Q. Signage for all cannabis distribution and transportation facilities shall be limited to name of business only, shall be in compliance with the City’s sign code, and shall contain no advertising of any companies, brands, products, goods, or services. Signage shall not include any drug-related symbols.

R. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. Cannabis distribution and transportation facilities shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any cannabis distribution or transportation facility.

S. Physician services shall not be provided on the cannabis distribution or transportation premises.

T. The building in which any cannabis distribution or transportation facility is located, as well as the operations as conducted therein, shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City’s business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the MCRSA. Compliance with all requirements of State law pertaining to medical cannabis distribution and transportation is also required.

U. Cannabis distribution and transportation facilities shall not grow, cultivate, manufacture, process, dispense, or administer cannabis from the facility unless expressly and affirmatively authorized by State law. Cannabis distribution and transportation facilities shall not be operated as cannabis cultivation, manufacturing, or testing facilities, or as cannabis dispensaries, unless expressly and affirmatively authorized by State law.

V. The operators of all cannabis distribution and transportation facilities shall provide the City Manager, or the City Manager’s designee, with the name, phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the cannabis distribution or transportation facility. All cannabis distribution and transportation facilities shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.

W. All cannabis distribution and transportation facilities shall be operated in accordance with the conditions of approval associated with the applicable CUP for the parcel of real property upon which the cannabis distribution or transportation activities occur.

X. All cannabis distribution and transportation facilities shall have a security plan including the following measures:
1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least 120 concurrent hours of digitally recorded documentation in a format approved by the City Manager or the City Manager’s designee. The cameras shall be in use 24 hours per day, seven days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, distribution areas, transportation areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager’s designee. Remote log-in information shall be provided to the City Manager, the Code Enforcement Manager, and the Chief of Police to allow them to view the security camera images and recordings from their own facilities at any time. Any disruption in security camera images shall be cured expeditiously in good faith.
2. The cannabis distribution and transportation facility shall be secured with an alarm system that is operated and monitored by a reputable security company.
3. Entrance to the distribution or transportation area, and all storage areas, shall be locked at all times, and under the control of the medical cannabis distribution or transportation facility’s staff.
4. The entrances and all window areas shall be illuminated during evening hours. The facility shall comply with the City’s lighting standards regarding fixture type, wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting approvals and permits as needed.
5. All windows on the building that houses the cannabis distribution or transportation facility shall be appropriately secured and all cannabis securely stored.

Y. Recordings made by the security cameras shall be made available to the City Manager, the City Manager’s designee, or law enforcement upon verbal request-no search warrant or subpoena shall be needed to view the recorded materials.

Z. The City Manager, the City Manager’s designee, and law enforcement shall have the right to enter the cannabis distribution or transportation facility at any time, unannounced, for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and the State.

AA. A Distribution/Transportation Permitee shall only distribute or transport medical cannabis between the business locations of Medical Cannabis Permitees.

BB. A Distribution/Transportation Permitee shall inspect all cannabis and cannabis products received for quality assurance prior to distributing or transporting to any Medical Cannabis Permitee.

CC. A Distribution/Transportation Permitee shall register with the City each location where cannabis is stored for purposes of distribution or transportation.

DD. A Distribution/Transportation Permitee shall distribute and transport batches of cultivated cannabis and cannabis products to dispensaries only after those batches have been inspected and quality tested by a qualified third party testing facility as required by the MCRSA, Business and Professions Code sections 19326 and 19342, the Department of Food and Agriculture regulations, and the State Department of Public Health regulations.

EE. A Distribution/Transportation Permitee may hold a Type 11 Distributor State license, and a Type 12 Transporter State license, but may not hold or use any other State or City cannabis activity permits or licenses that would otherwise be a violation of the MCRSA or Business and Professions Code section 19328.

(2) Distribution/Transportation Permit Applications. All applicants wishing to obtain a Distribution/Transportation Permit from the City shall file an application with the City upon a form provided by the City and shall pay a Distribution/Transportation Permit Application Fee as established by the City. An application for a Distribution/Transportation Permit shall include at least the following information:

A. The address of the applicant’s headquarters.

B. An estimate of the size of the proposed medical cannabis distribution or transportation facility.

C. The address of the location for which the Distribution/ Transportation Permit is sought. Only one Distribution/ Transportation Permit will be issued per location.

D. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, distribution and transportation areas, lighting, signage, etcetera.

E. A proposed security plan in compliance with the Medical Cannabis Distribution/Transportation Standards.

F. The names, addresses, and relevant criminal histories of all potential employees, facility managers, and other relevant parties for the distribution or transportation facility. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

G. The name and address of the owner and lessor of the real property upon which the medical cannabis distribution or transportation activity is proposed to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a medical cannabis distribution or transportation facility will be operated on the property.

H. Authorization for the City Manager or the City Manager’s designee to seek verification of the information contained within the application.

I. Evidence that the medical cannabis distribution or transportation facility will be located in a legal structure that is compliant with all applicable State and local laws.

J. Evidence that the medical cannabis distribution or transportation facility has registered with the City all locations where medical cannabis will be stored for purposes of distribution or transportation.

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

L. Any such additional and further information as is deemed necessary by the City Manager or the City Manager’s designee to administer this Section.

M. The City Manager or the City Manager’s designee shall conduct a background check of any applicant seeking a Distribution/ Transportation Permit, including all potential employees and any person who may be a facility manager or otherwise responsible for the activities of the medical cannabis distribution or transportation facility (“Applicant’s Agents”), and shall prepare a report on the acceptability of the applicant and the Applicant’s Agents and the suitability of the proposed location.

N. The City Manager or the City Manager’s designee shall rank all qualified applications in order of those that best satisfy the requirements of this Section and provide the highest level of service and opportunities for residents of the City based on the requirements of this Section and the following criteria (“Merit List”):
1. The operational plan for the facility.
2. The security plan for the facility.
3. The experience of the operators of the facility.
4. The adequacy of capitalization for the facility and its operations.
5. The employment of City residents and other public benefits to the City.

(3) Distribution/Transportation Permit. The following conditions apply to each Distribution/Transportation Permit:

A. A Distribution/Transportation Permit will not be awarded to an applicant if:
1. The applicant or the Applicant’s Agents made one or more false or misleading statements or omissions in the application or during the application process.
2. The proposed medical cannabis distribution or transportation facility is not allowed by State or local law.
3. The applicant is not a legal representative of the medical cannabis distribution or transportation facility.
4. The applicant or the Applicant’s Agents have been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, distribution, transportation, or any such similar activity related to controlled substances, with the exception of cannabis related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
5. The applicant or the Applicant’s Agents have engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
6. The applicant has not satisfied each and every requirement of this Section.

B. A Distribution/Transportation Permit shall be awarded by the City to eligible Distribution/Distribution Permit applicants in order of the Merit List as established by the City Manager or the City Manager’s designee. The number of Distribution/Transportation Permits shall be limited to those that may be reasonably accommodated within the Distribution/Transportation Zone as determined by the City Manager or the City Manager’s designee.

C. Before a Distribution/Transportation Permit can be issued to an applicant, Distribution/Transportation Permit fees must be paid to offset all related costs to the City, and the proposed medical cannabis distribution or transportation facility location must pass all applicable inspections.

D. Only one Distribution/Transportation Permit may be possessed or used by the same person or entity, including the representatives, agents, parent entities, or subsidiary entities of that person or entity.

E. Each Distribution/Transportation Permit is subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the medical cannabis distribution or transportation activity occurs.

F. Each Distribution/Transportation Permit is subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the cannabis distribution or transportation activities and to protect the public.

G. All distribution and transportation activities shall be subject to an excise tax to be established by the City and the voters.

H. Each Distribution/Transportation Permitee shall enter into an agreement with the City to fully reimburse the City for all fiscal impacts, costs, expenses, fees, and attorneys’ fees incurred by the City related to the Distribution/Transportation Permit and the cannabis distribution and transportation activity.

I. Each Distribution/Transportation Permitee shall:
1. Carry liability insurance in the amounts and types set by the City Manager or the City Manager’s designee, and name the City as an additional insured on all such insurance policies.
2. Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Distribution/Transportation Permit, the Distribution/Transportation Permitee’s cannabis related activities, and any action taken by the Distribution/ Transportation Permitee pursuant to this Section.
3. Defend the City, at the Distribution/Transportation Permitee’s sole expense, in any action against the City or its agents, officers, or employees associated with the Distribution/Transportation Permit, the Distribution/ Transportation Permitee’s cannabis related activities, or any action taken by the Distribution/Transportation Permitee pursuant to this Section. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the Distribution/ Transportation Permitee of its indemnification and reimbursement obligations.
4. Reimburse the City for all costs, expenses, fees, and attorney fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the Distribution/Transportation Permit, the Distribution/ Transportation Permitee’s cannabis related activities, or any action taken by the Distribution/Transportation Permitee pursuant to this Section.

J. A Distribution/Transportation Permitee shall keep the City and law enforcement updated with the names, addresses, and relevant criminal histories of all employees, facility managers, and other relevant parties for the medical cannabis distribution or transportation facility at all times. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

K. A Distribution/Transportation Permitee shall account for job creation in the City and shall commit to employing a workforce that resides in the City. A minimum of 50% of all employees employed by the Distribution/Transportation Permitee at the medical cannabis distribution or transportation facility shall be residents of the City. A Distribution/Transportation Permitee shall use good faith efforts to comply with this Subsection and shall report the residential composition of its workforce to the City every year and at any other time upon demand by the City Manager or the City Manager’s designee.

L. A Distribution/Transportation Permit issued pursuant to this Section is not transferable to any third parties under any circumstances.

M. A Distribution/Transportation Permit shall expire and be null and void 12 months after issuance to the Distribution/Transportation Permitee unless properly renewed. Upon payment of the applicable Distribution/Transportation Permit fees, and passing the requisite Distribution/Transportation Permit inspections, a Distribution/ Transportation Permitee that has maintained compliance with all City, State, and other applicable cannabis and business related laws shall be entitled to renew its Distribution/Transportation Permit subject to all prevailing laws at the time of renewal.

N. To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any cannabis distribution or transportation activities, or for the activities of any cannabis distribution or transportation facility.

(4) Conditional Use Permit. All parcels of real property in the Distribution/ Transportation Zone, upon which cannabis distribution or transportation activities may occur, must obtain a CUP from the City for all such activities.

(d) Enforcement.
(1) Any cannabis distribution or transportation within the City in violation of this Section is hereby declared to be unlawful and a public nuisance.
(2) Any party who engages in a violation of this Section, or who owns, possesses, controls, or has charge of any parcel of real property in the City upon which a violation of the Section is maintained, shall be subject to the penalties and remedies provided by this Section.
(3) Any violation of this Section shall constitute a separate offense for each and every day the violation occurs or persists.
(4) Any person in violation of any provision of this Section shall be guilty of a misdemeanor and shall be punishable by a fine of up to $ 1,000 and up to six months imprisonment per offense.
(5) Any person in violation of any provision of this Section shall be punishable by an administrative fine of up to a $1,000 per offense.
(6) Any violation of this Section or any other City or State cannabis law by a Distribution/Transportation Permitee, or a Distribution/Transportation Permitee’s agent, is grounds for revoking the relevant Distribution/ Transportation Permit. In addition, the City Manager or the City Manager’s designee may revoke a Distribution/Transportation Permit if any of the following occur:

A. The City Manager or the City Manager’s designee determines that the cannabis distribution or transportation facility has failed to comply with this Section, any condition of approval, or any agreement or covenant as required pursuant to this Section.

B. The medical cannabis distribution or transportation operations cease for more than 90 calendar days.

C. Ownership of the medical cannabis distribution or transportation facility is changed or transferred to a third party.

D. The medical cannabis distribution or transportation facility fails to maintain 120 hours of security recordings.

E. The medical cannabis distribution or transportation facility fails to provide remote access to the security cameras to the City Manager, the City Manager’s designee, or the Chief of Police, or fails to allow inspection of the security recordings, the activity logs, or of the premise by authorized City officials.
(7) Any decision regarding the revocation of a Distribution/Transportation Permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager’s designee (“Hearing Officer”). Said appeal shall be made by a notice of appeal from the person appealing within 15 days from the date of the decision to revoke the Distribution/Transportation Permit. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the Distribution/Transportation Permit was improperly revoked. The Hearing Officer’s decision shall be final and binding upon the City and the appellant.

(8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.

[Ord. No. 548, Section 2, 10/12/16; Ord. No. 556, Section 4, 12/14/16; Ord. No. 558, Section 4, 12/14/16.]


17.80.110 Medical Cannabis Testing

(c) Cannabis Testing Prohibited. All commercial cannabis testing within the City is prohibited except as expressly permitted by this Section.

(d) Medical Cannabis Testing Conditionally Permitted. Commercial medical cannabis testing is conditionally permitted in the City only as expressly specified in this Section.

(1) Medical Cannabis Testing Standards. Commercial medical cannabis testing, within the City, shall be in conformance with the following standards:

A. Commercial medical cannabis testing shall only be allowed upon application and approval of a Testing Permit and a CUP, or Minor Conditional Use Permit (CUPm) for proposed uses within existing buildings requiring no more than Tenant Improvements, in accordance with the criteria and process set forth in this Section and this Code.

B. Commercial medical cannabis testing is a conditionally permitted use only on properties within the Manufacturing/Industrial (MI) zoning designation in the Industrial Park, and the Light Manufacturing (“LM”) zoning designation subject to the locational requirements in Section 17.80.110(d)(1)(C) and restricted to the area bounded by Air Expressway to the north, Yucca Road to the south, Raccoon Avenue to the east, and Koala Road to the west (“Cannabis Zone”).

C. No commercial cannabis testing facility shall be established, developed, or operated within 2,500 feet of a school, public playground or park, child care or day care facility, youth center, or church. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the commercial medical cannabis testing is, or will be, located to the nearest property line of those uses described in this Subsection.

D. A commercial cannabis testing facility may not be located within the same unit as an indoor cannabis cultivation facility, manufacturing facility, distribution facility, transportation facility, or dispensary.

E. Subject to the further requirements of this Section, only Type 8 State testing licenses, as specified in the MCRSA and Business and Professions Code section 19300.7, will be allowed to operate in the City.

F. Commercial medical cannabis testing is allowed only within fully enclosed and secure structures that are inaccessible to minors.

G. Commercial medical cannabis testing shall not exceed the square footage authorized pursuant to the applicable CUP.

H From any public right-of-way, there shall be no visible exterior evidence of any cannabis testing activity.

I. Cannabis testing shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes.

J. Each commercial cannabis testing facility shall fully comply with all of the applicable restrictions and mandates set forth in State law. A commercial cannabis testing facility shall comply with all size requirements for such facility as imposed by State law. A cannabis testing facility shall not engage in any activities not allowed by a medical cannabis testing facility pursuant to State law. A cannabis testing facility shall comply with all horticultural, labeling, processing, and other standards required by State law.

K. There is no set restriction on the hours of operation of a commercial medical cannabis testing facility; however, restricted hours of operation may be established as a condition of approval of the Testing Permit or the applicable CUP.

L. All cannabis shall be kept in a secured manner during all business and nonbusiness hours.

M. A cannabis testing facility shall operate within a legal structure that is compliant with all applicable State and local laws.

N. A cannabis testing facility must pay all applicable sales taxes pursuant to all federal, State, and local laws.

O. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited on the premises of a cannabis testing facility. The term “premises” as used in this Subsection includes the actual cannabis testing building, as well as any accessory structures and parking areas. The cannabis testing facility building entrance shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming cannabis or alcohol on the premises or in the vicinity of the facility is prohibited.

P. Signage for a medical cannabis testing facility shall be limited to name of business only, shall be in compliance with the City’s sign code, and shall contain no advertising of any companies, brands, products, goods, or services. Signage shall not include any drug-related symbols.

Q. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. A cannabis testing facility shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. Tn addition, alcoholic beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any cannabis testing facility.

R. Physician services shall not be provided on the cannabis testing facility premises.

S. The building in which any cannabis testing facility is located, as well as the operations as conducted therein, shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City’s business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the MCRSA. Compliance with all requirements of State law pertaining to medical cannabis testing is also required.

T. A cannabis testing facility shall not grow, cultivate, process, distribute, transport, sell, dispense, or administer cannabis from the facility to the public. A cannabis testing facility shall not be operated as a cannabis dispensary.

U. The operators of a cannabis testing facility shall provide the City Manager, or the City Manager’s designee, with the name, phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the cannabis testing facility. A cannabis testing facility shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.

V. Each cannabis testing facility shall be operated in accordance with the conditions of approval associated with the applicable CUP for the parcel of real property upon which the cannabis testing activities occur.

W. Each cannabis testing facility shall have a security plan including the following measures:
1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least 120 concurrent hours of digitally recorded documentation in a format approved by the City Manager or the City Manager’s designee. The cameras shall be in use 24 hours per day, seven days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, testing areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager’s designee. Remote log-in information shall be provided to the City Manager, the Code Enforcement Manager, and the Chief of Police to allow them to view the security camera images and recordings from their own facilities at any time. Any disruption in security camera images shall be cured expeditiously in good faith.
2. The cannabis testing facility shall be secured with an alarm system that is operated and monitored by a reputable security company.
3. Entrance to the cannabis testing area, and all storage areas, shall be locked at all times, and under the control of the medical cannabis testing facility’s staff.
4. The entrances, and all window areas, shall be illuminated during evening hours. The cannabis testing facility shall comply with the City’s lighting standards regarding fixture type, wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting approvals and permits as needed.
5. All windows on the building that houses the cannabis testing facility shall be appropriately secured and all cannabis securely stored.

X. Recordings made by the security cameras shall be made available to the City Manager, the City Manager’s designee, or law enforcement upon verbal request-no search warrant or subpoena shall be needed to view the recorded materials.

Y. The City Manager, the City Manager’s designee, and law enforcement shall have the right to enter any cannabis testing facility at any time, unannounced, for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and the State.

Z. Each cannabis testing facility must employ full time quality control personnel.

AA. All cultivated cannabis, and manufactured cannabis products, must be properly tested prior to being dispensed to the public as required by the MCRSA, Business and Professions Code sections 19326 and 19342, and the State Department of Public Health regulations.

BB. Each Testing Permitee shall be independent from all other persons and entities involved in the cannabis industry including, but not limited to, cannabis cultivators, manufacturers, distributors, transporters, and dispensaries.

CC. A cannabis testing facility shall not acquire or receive cannabis or cannabis products except from a Medical Cannabis Permitee. A Testing Permitee shall not cultivate, manufacture, distribute, transport, deliver, or dispense cannabis or cannabis products.

DD. A cannabis testing facility must adopt a standard operating procedure using methods consistent with general requirements for the competence of testing and calibration activities, including sampling. A Testing Permitee must use testing standards and methods established specifically for medical cannabis testing by the State.

EE. A cannabis testing facility must establish standard operating procedures that provide for adequate chain of custody controls for samples transferred to the cannabis testing facility for testing.

FF. A Testing Permitee must obtain testing samples according to a statistically valid sampling method. All testing samples must be picked independently and at random by the Testing Permitee. Testing samples cannot be pre-selected by outside persons or entities involved in the cultivation, manufacturing, distribution, transportation, delivery, or dispensing of cannabis.

GG. Cannabis from dried flower must, at minimum, be tested for concentration, pesticides, mold, and other contaminants. Cannabis extracts must, at minimum, be tested for concentration and purity of the product.

HH. A cannabis testing facility must analyze samples according to either the most current version of the cannabis inflorescence monograph (“Monograph”) published by the American Herbal Pharmacopoeia or other scientifically valid methodology that is equal or superior to the Monograph.

II. If a test result falls outside the specifications authorized by law or regulation, the cannabis testing facility shall follow a standard operating procedure to confirm or refute the original result.

JJ. A cannabis testing facility must destroy the remains of any sample of cannabis or cannabis product upon completion of the testing analysis.

KK. A cannabis testing facility must destroy cannabis batches whose testing samples indicate noncompliance with health and safety standards promulgated by the State Department of Public Health, unless remedial measures can bring the cannabis into compliance.

LL. A Testing Permitee shall issue a certificate of analysis for each sample tested to report whether the chemical profile of the sample conforms to the specifications for the sample for compounds. Compounds tested include, but are not limited to, the compounds listed under Business and Professions Code section 19344.

MM. A Testing Permitee shall issue a certificate of analysis for each sample tested to report whether the presence of contaminants in the sample does or does not exceed the levels that are the lesser of either the most current version of the Monograph or those set by the State Department of Public Health. Contaminants tested include, but are not limited to, the contaminants listed under Business and Professions Code section 19344.

NN. Each cannabis testing facility must analyze whether residual levels of volatile organic compounds in each sample tested are below the lesser of either the specifications set by the United States Pharmacopeia (U.S.P. Chapter 467) or those set by the State Department of Public Health.

OO. All testing devises used by a cannabis testing facility must be UL listed, or otherwise approved for the intended use by the City’s Building Official or the Fire Department. Any testing devices using only non-pressurized water are exempt from such approval.

PP. Unless otherwise prohibited, all testing devices used by a cannabis testing facility that utilize hydrocarbons or otherwise flammable solvents must operate in a closed loop, or in such a way that all solvent material is recovered in the process. All hazardous material must be disposed of in a manner that is compliant with all local, State, and federal guidelines for the disposal of hazardous materials.

QQ. Each cannabis testing facility must notify the State Department of Public Health and the City Manager, or the City Manager’s designee, within one business day after the receipt of notice of any kind that its accreditation has been denied, suspended, or revoked.

(2) Testing Permit Applications. All applicants wishing to obtain a Testing Permit from the City shall file an application with the City upon a form provided by the City and shall pay a Testing Permit Application Fee as established by the City. An application for a Testing Permit shall include at least the following information:

A. An estimate of the size of the proposed medical cannabis testing facility.

B. The address of the location for which the Testing Permit is sought. Only one Testing Permit will be issued per location.

C. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, testing areas, lighting, signage, et cetera.

D. A proposed security plan in compliance with the Medical Cannabis Testing Standards.

E. The names, addresses, and relevant criminal histories of all potential employees, facility managers, and other relevant parties for the medical cannabis testing facility. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

F. The name and address of the owner and lessor of the real property upon which the medical cannabis testing activity is proposed to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a medical cannabis testing facility will be operated on the property.

G. Evidence that the medical cannabis testing facility is independent from all other persons and entities involved in the cannabis industry, as required by Business and Professions Code section 19343.

H. Evidence that the medical cannabis testing facility follows the methodologies, ranges, and parameters that are contained in the scope of the accreditation for testing medical cannabis and medical cannabis products. The medical cannabis testing facility shall also comply with any other requirements specified by the State Department of Public Health.

I. Authorization for the City Manager or the City Manager’s designee to seek verification of the infonnation contained within the application.

J. Evidence that the medical cannabis testing facility will be located in a legal structure that is compliant with all applicable State and local laws.

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

L. Any such additional and further information as is deemed necessary by the City Manager or the City Manager’s designee to administer this Section.

M. The City Manager or the City Manager’s designee shall conduct a background check of any applicant seeking a Testing Permit, including all potential employees and any person who may be a facility manager or otherwise responsible for the activities of the cannabis testing facility (“Applicant’s Agents”), and shall prepare a report on the acceptability of the applicant and the Applicant’s Agents and the suitability of the proposed location.

N. The City Manager, or the City Manager’s designee, shall rank all qualified applications in order of those that best satisfy the requirements of this Section and provide the highest level of service and opportunities for residents of the City based on the requirements of this Section and the following criteria (“Merit List”):
1. The operational plan for the facility.
2. The security plan for the facility.
3. The experience of the operators of the facility.
4. The adequacy of capitalization for the facility and its operations.
5. The employment of City residents and other public benefits to the City.

(3) Testing Permit. The following conditions apply to each Testing Permit:

A. A Testing Permit will not be awarded to an applicant if:
1. The applicant or the Applicant’s Agents made one or more false or misleading statements or omissions in the application or during the application process.
2. The proposed medical cannabis testing facility is not allowed by State or local law.
3. The applicant is not a legal representative of the medical cannabis testing facility.
4. The applicant or the Applicant’s Agents have been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, distribution, transportation, or any such similar activity related to controlled substances, with the exception of cannabis related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
5. The applicant or the Applicant’s Agents have engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
6. The applicant has not satisfied each and every requirement of this Section.

B. A Testing Permit shall be awarded by the City to eligible Testing Permit applicants in order of the Merit List as established by the City Manager or the City Manager’s designee. The number of Testing Permits shall be limited to those that may be reasonably accommodated within the Testing Zone as determined by the City Manager or the City Manager’s designee.

C. Before a Testing Permit can be issued to an applicant, Testing Permit fees must be paid to offset all related costs to the City, and the proposed medical cannabis testing facility location must pass all applicable inspections.

D. Only one Testing Permit may be possessed or used by the same person or entity, including the representatives, agents, parent entities, or subsidiary entities of that person or entity.

E. A Testing Permit is subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the cannabis testing activity occurs.

F. A Testing Permit is subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the cannabis testing activity and to protect the public.

G. All cannabis testing activities shall be subject to an excise tax to be established by the City and the voters.

H. A Testing Permitee may not hold or use any other cannabis activity permits or licenses that would otherwise be a violation of this Section, the MCRSA, or Business and Professions Code section 19328.

I. A Testing Permitee may not own or have an ownership interest in any activity or facility related to cannabis cultivation, manufacturing, distribution, transportation, delivery, or dispensing.

J. A Testing Permitee shall enter into an agreement with the City to fully reimburse the City for all fiscal impacts, costs, expenses, fees, and attorneys’ fees incurred by the City related to the Testing Permit and the cannabis testing activity.

K. A Testing Permitee shall:
1. Carry liability insurance in the amounts and types set by the City Manager or the City Manager’s designee, and name the City as an additional insured on all such insurance policies.
2. Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Testing Permit, the Testing Permitee’s cannabis related activities, and any action taken by the Testing Permitee pursuant to this Section.
3. Defend the City, at the Testing Permitee’s sole expense, in any action against the City or its agents, officers, or employees associated with the Testing Permit, the Testing Permitee’s cannabis related activities, or any action taken by the Testing Permitee pursuant to this Section. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the Testing Permitee of its indemnification and reimbursement obligations.
4. Reimburse the City for all costs, expenses, fees, and attorney fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the Testing Permit, the Testing Permitee’s cannabis related activities, or any action taken by the Testing Permitee pursuant to this Section.

L. Each Testing Permitee shall keep the City and law enforcement updated with the names, addresses, and relevant criminal histories of all employees, facility managers, and other relevant parties for the cannabis testing facility at all times. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.

M. Each Testing Permitee shall account for job creation in the City and shall commit to employing a workforce that resides in the City. A minimum of 50% of all employees employed by the Testing Permitee at the cannabis testing facility shall be residents of the City. A Testing Permitee shall use good faith efforts to comply with this subsection and shall report the residential composition of its workforce to the City every year and at any other time upon demand by the City Manager or the City Manager’s designee.

N. A Testing Permit issued pursuant to this Section is not transferable to any third parties under any circumstances.

O. A Testing Permit shall expire and be null and void 12 months after issuance to the Testing Permitee unless properly renewed. Upon payment of the applicable Testing Permit fees and passing the requisite Testing Permit inspections, a Testing Permitee that has maintained compliance with all City, State, and other applicable medical cannabis and business related laws shall be entitled to renew its Testing Permit subject to all prevailing laws at the time of renewal.

P. To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any cannabis testing activities or for the activities of any cannabis testing facility.

(4) Conditional Use Permit. All parcels of real property in the Testing Zone upon which medical cannabis testing activities may occur must obtain a CUP from the City for all such activities.

(e) Enforcement.

(1) Any cannabis testing within the City in violation of this Section is hereby declared to be unlawful and a public nuisance.

(2) Any party who engages in a violation of this Section, or who owns, possess, controls, or has charge of any parcel of real property in the City upon which a violation of the Section is maintained, shall be subject to the penalties and remedies provided by this Section.

(3) Any violation of this Section shall constitute a separate offense for each and every day the violation occurs or persists.

(4) Any person in violation of any provision of this Section shall be guilty of a misdemeanor and shall be punishable by a fine of up to $ 1,000 and up to six months imprisonment per offense.

(5) Any person in violation of any provision of this Section shall be punishable by an administrative fine of up to a $1,000 per offense.

(6) Any violation of this Section or any other City or State cannabis law by a Testing Permitee or a Testing Permitee’s agent is grounds for revoking the relevant Testing Permit. In addition, the City Manager or the City Manager’s designee may revoke a Testing Permit if any of the following occur:
A. The City Manager or the City Manager’s designee determines that the cannabis testing facility has failed to comply with this Section, any condition of approval, or any agreement or covenant as required pursuant to this Section.
B. The medical cannabis testing operations cease for more than 90 calendar days.
C. Ownership of the medical cannabis testing facility is changed or transferred to a third party.
D. The medical cannabis testing facility fails to maintain 120 hours of security recordings.
E. The medical cannabis testing facility fails to provide remote access to the security cameras to the City Manager, the City Manager’s designee, the Code Enforcement Manager, or the Chief of Police, or fails to allow inspection of the security recordings, the activity logs, or of the premises by authorized City officials.

(7) Any decision regarding the revocation of a Testing Permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager’s designee (“Hearing Officer”). Said appeal shall be made by a notice of appeal from the person appealing within 15 days from the date of the decision to revoke the Testing Permit. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the Testing Permit was improperly revoked. The Hearing Officer’s decision shall be final and binding upon the City and the appellant.

(8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.

[Ord. No. 548, Section 3, 10/12/16; Ord. No. 556, Section 5, 12/14/16; Ord. No. 558, Section 5, 12/14/16.]

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