HomeMy Public PortalAboutOrd. 1707ORDINANCE NO. 1707
AN ORDINANCE OF THE LYNWOOD CITY COUNCIL AMENDING CHAPTER
4, TITLE 34 OF THE LYNWOOD MUNICIPAL CODE
WHEREAS, Ordinance No. 1688, An Ordinance of the Lynwood City
Council Adding Title 34 to Chapter 4 Licensing and Business Regulations of the
Lynwood Municipal Code Relating to the Licensing and Regulation of Cannabis
Cultivation and Manufacturing -Related Businesses in the City of Lynwood, and
Consideration of the Planning Commission's Recommendation to Amend the
Zoning Code to Allow Cultivation/Manufacturing Commercial Cannabis Activity in
the Manufacturing Zone of the City, was adopted by the Lynwood City Council on
December 20, 2016; and
WHEREAS, it is the desire of the City of Lynwood City Council to amend
selected provisions of Chapter 4, Title 34 of the Municipal Code; and
WHEREAS, it is the desire of the City of Lynwood City Council to abide by
and be consistent with State law, as mandated by legislation concerning the use
of medical and non-medical, adult use recreational marijuana, enacted from 1996
to the present.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD
DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDAIN AS
FOLLOWS:
TITLE 34
4-34-1: Purpose
A. The purpose of this article is to regulate all commercial cannabis activity in
the City of Lynwood, as defined in Section 26001 of the California Business and
Professions Code, to the extent authorized by state law and in a manner
designed to minimize negative impact on the .city, and to promote the health,
safety, morals, and general welfare of residents and businesses within the city.
B. This article is further adopted, established, and amended pursuant to the
specific authority granted to the City of Lynwood in Section 7 of Article XI of the
California Constitution and Division 10 of the California Business and Professions
Code, commencing with section 26000. These regulations shall govern all
commercial cannabis activity that occurs within the jurisdiction of the City.
4-34-2: Definitions
Terms not defined herein shall have the same meanings set forth in the
Medical and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") and
any regulations promulgated pursuant thereto. In addition, the following terms
shall be defined as follows:
A. "Applicant" shall have the same meaning as in Section 26001(c) of the
California Business and Professions Code.
B. "Cannabis" shall have the same meaning as in Section 26001(f) of the
California Business and Professions Code..
C. "City" means the City of Lynwood, California.
D. "City Manager" shall mean the city manager of the city or a duly authorized
designee..
E. "Code" means the Lynwood Municipal Code.
F. "Commercial Cannabis" shall include medical as well as adult use
cannabis.
G. "Commercial Cannabis Activity" shall have the same meaning as in Section
26001(k) of the California Business and Professions Code.
H. "Cultivation Site" shall have the same meaning as in Section 26001(m) of
the California Business and Professions Code.
I. "Delivery" shall have the same meaning as in section 26001(p) of the
Business and Professions Code.
J. "Distribution" shall have the same meaning as in section 26001(r) of the
Business and Professions Code.
K. "Enclosed Locked Structure," means a structure that: (1) does not allow for
the visibility of the interior from the outside; (2) is secured with a lock; (3) is
completely surrounded on all sides by a wall; and (4) is roofed. Enclosed locked
structures may include accessory buildings. All enclosed locked structures shall
comply with the city building code, city fire code, and all other applicable laws.
L. "Good Cause" for purposes of refusing or denying an initial license under
this chapter, for revoking a permit, or for refusing or denying a permit renewal or
reinstatement, means:
1. The applicant has not obtained approval by the city council of a development
.agreement setting forth the general terms for the operation of a business under
this Chapter or a Licensee breaches the terms of an applicable development
agreement;
2. The applicant or licensee has violated any of the terms, conditions or provisions of
this chapter, of state law, of any regulations and rules promulgated pursuant to
state law, any applicable local rules and regulations, or any special terms or
conditions placed upon its state license, local license or permit;
3. The Licensed Premises have been operated in a manner that adversely affects
the public health, safety or welfare or the safety of the immediate neighborhood in
which the establishment is located;
.4. • The applicant or licensee has knowingly made false statements,
misrepresentations or material omissions on an application form, renewal form, or
any other document submitted to the city;
5. The applicant or licensee's criminal history does not indicate that the applicant or
licensee is of good moral character; or the applicant or licensee has been
convicted of an offense that is substantially related to the qualifications, functions,
or duties of the business or profession for which the application is made; except
that, if the local licensing authority has issued a local license to the applicant or
licensee, the City shall not consider any criminal history of the applicant or
licensee that was disclosed to or discovered by the local licensing authority prior
to the issuance of the local license and is confirmed by the applicant. For any
criminal history that was not disclosed to or discovered by the local licensing
authority prior to the issuance of the local license, or that arose after the issuance
of the local license, the City shall conduct a thorough review of the nature of the
crime, conviction, circumstances, and evidence of rehabilitation of the applicant or
licensee, and shall evaluate the suitability of the applicant or licensee to be issued
a permit based on the evidence found through the review. In determining which
offenses are substantially related to the qualifications, functions, or duties of the
business or profession for which the application is made, the City shall .consider
the factors as set forth in Section 26057(b)(5) of the California Business and
Professions Code;
6. The applicant or licensee is employing or allowing to volunteer any person whose
criminal history indicates that person is not of good moral character;
7. The applicant or licensee fails to allow inspection of the security recordings,
activity logs, or business records of the Licensed Premises by city officials; or
8. An owner of the applicant or licensee is a licensed physician providing written
documentation to qualified patients for medical cannabis.
9. The applicant or licensee has had a license application denied, or a license
revoked or suspended by the State of California.
M. "Good Moral Character" means having a personal history that
demonstrates the propensity to serve the public in the licensed area in a manner
that reflects openness, honesty, fairness, and respect for the rights of others and
for the law. In determining good moral character, the following standards shall
apply:
1. A judgment of guilt in a criminal prosecution or a judgment in a civil action shall
not be used, in and of itself, as proof of an individual's lack of good moral
character. Such judgment may be used as evidence in the determination, and
when so used the individual shall be notified and shall be permitted to rebut the
evidence by .showing that at the current time he or she has the ability to, and is
likely to serve the public in a fair, honest and open manner, that he or she is
rehabilitated, or that the substance of the former offense is not substantially .
related to the occupation or profession for which he or she seeks to be licensed.
2. Notwithstanding Chapter 2 of Division 1.5 of the California Business and
Professions Code, a prior conviction where the sentence, including any term of
probation, incarceration, or supervised release is completed for possession of,
possession for sale, sale, manufacture, transportation, or cultivation of a
controlled substance, is not considered substantially related, and shall not be the
sole ground for denial of a local license, except that any of the following
convictions shall be deemed substantially related and may be the sole grounds for
denying a local license or permit:
a. A felony conviction for hiring, employing, or using a minor in transporting,
carrying, selling, giving away, preparing for sale, or peddling, any controlled
substance; or
b. A felony conviction for selling, offering to sell, furnishing, offering to furnish,
administering, or giving any controlled substance to a minor; or
C. A felony conviction for drug trafficking with enhancements pursuant to
Section 11370.4 or 11379.8 of the California Health and Safety Code.
d. Conviction for any controlled substance felony subsequent to issuance of a
permit shall be grounds for revocation of a permit or denial of the renewal of a
permit.
K. "Licensed Premises" means the premises, consisting of a single or immediately
adjoining parcel(s) as identified by valid street address and Assessor Parcel
Number, specified in an application for a permit under this chapter, which are
owned or in possession of the applicant or licensee and within which the applicant
or licensee is applying for authorization to cultivate, manufacture, distribute, test,
or is applying for multiple permitted uses within the same premises, in accordance
with the provisions of this .chapter, the MCRSA, any development agreement
approved by city council, and any rules adopted pursuant thereto, except that no
storefront dispensary, as specified in Section 25-200-1 of the Lynwood Municipal
Code, shall be permitted within the City.
L. "Licensee" means a person who has been issued a commercial cannabis
business permit issued pursuant to this chapter for one Licensed Premises.
M. "Limited Access Area" means a building, room or other area that is part of the
Licensed Premises where medical or adult use cannabis is grown, cultivated,
stored, weighed, displayed, packaged, or sold to other medical or adult use
cannabis businesses, under control of the licensee, with limited access to only
authorized personnel.
N. "Local License" means a business license granted by the City, pursuant to
Chapter 4 of this code.
O, "Manufacturing Site" shall mean any building, structure, premises, or location that
is used to manufacture cannabis or cannabis related products.
P. "Medical Cannabis" shall have the same meaning as the term "medicinal
cannabis," as defined in Section 26001(ai) of the California Business and
Professions Code.
Q. "Commercial Cannabis Business" means any person engaged in commercial
cannabis activity.
R. "Medical and Adult Use Cannabis Regulation and Safety Act" or "MAUCRSA"
means Division 10 of the California Business and Professions Code.
S. "Outdoors" means any location within the city that is not within an enclosed locked
structure..
T. "Owner" means, pursuant to Section 26001(a]) of the California Business and
Professions Code, an owner of a commercial cannabis business, including all
persons having an ownership interest other than a security interest, lien, or
encumbrance on property that will be used by the commercial -cannabis business.
1. If an owner is an entity, "owner" includes within the entity each person
participating in the direction, control, or management of, or having a financial
interest in, the commercial cannabis business.
2. If an owner is a publicly traded company, "owner" also means the chief
executive officer and any person with an aggregate ownership interest of five
percent or more in such company.
U. "Person has the same meaning as that term is defined in Section 26001 (an) of
the California Business and Professions Code.
V. "Permit" means authorization to conduct commercial cannabis activity pursuant to
this chapter, State 'law, and upon the issuance of an occupancy permit and
business license by the City.
W. "Physician" shall mean an individual who possesses a license in good standing to
practice medicine or osteopathy from the State of California.
X. "State law(s)" shall mean and include California Health and Safety Code Section
11362.5 (Compassionate Use Act of 1996); California Health and Safety Code
Sections 11362.7 to 11362.83 (Medical Marijuana Program Act); the California
Attorney General's Guidelines for the Security and Non -Diversion of Marijuana
Grown for Medical Use issued in August, 2008, as such guidelines may be
revised from time to time by action of the Attorney General; MAUCRSA, and all
other applicable laws of the state of California.
Y. "State License" has the same meaning as that term is defined in Section
26001(a), (c), (y), and (ae) of the California Business and Professions Code.
AA. "State Licensing Authority" shall mean the Bureau of Cannabis Control
within the Department of Consumer Affairs, the Department of Public Health, or
any other state agency responsible for the issuance, renewal, or reinstatement of
a local license issued pursuant to Division 10 of the California Business and
Professions Code or any state agency authorized to take disciplinary action
against such local license.
BB. "Written Documentation" shall have the meaning set forth in Section
11362.7(i) of the California Health and Safety Code.
CC. "Youth Center" means any facility that is operated by a public agency or
non-profit entity with the sole purpose of providing educational and/or recreational
services to minors.
4-34-3: Relationship to other laws.
Except as otherwise specifically provided herein, this title incorporates the
requirements and procedures set forth in Division 10 of the California Business
and Professions Code, starting with section 26000, as such division may be
amended in the future. In the event of any conflict between the provisions of this
title and the provisions of Division 10 of the Business and Professions Code or
any other applicable state law or the Lynwood Municipal Code, the more
restrictive provision shall govern.
4-34-4: Permitted Use
A. Commercial cannabis businesses shall only be permitted to operate in the
city following application, investigation, verification, approval and issuance of
development agreement approved by the city council and a business license
issued by the City .in accordance with the criteria and procedures set forth in
Chapter 4 of this code and in compliance with the Lynwood Municipal Code. No
land use entitlement, permit (including building permit) approval, site plan,
certificate of occupancy, zoning clearance, or other land use authorization for a
commercial cannabis business shall be granted or permitted unless it complies
with the provisions of this chapter and the applicable building standards and the
Lynwood Municipal Code. If there is a conflict between the requirements of
another chapter and this chapter, the requirements of this Chapter 434 shall
prevail.
B. All persons who are engaged in or who are attempting to engage in
commercial cannabis activity in any form shall do so only in strict compliance with
the terms, conditions, limitations and restrictions of the MCRSA, the provisions of
this Chapter 4-34, and all other applicable state and local laws and regulations..
C. The City Manager is authorized to make policies and procedures
consistent with the intent and spirit of this chapter concerning the applications, the
application process, the information required of applicants, the application
procedures and the administration and procedures to be used and followed in the
application and hearing process.
4-34-5: Development agreement.
Prior to operating in the city and as a condition of issuance of a Permit, the
applicant shall enter into a development agreement with the city setting forth the
terms and conditions under which the facility will operate that is in addition to the
requirements of this chapter, including, but not limited to, public outreach and
education, community service, payment of fees and other charges as mutually
agreed upon, approval of architectural plans (including site plan, floor plan, and
elevation, to conform with manufacturing uses under the Lynwood Municipal
Code), and such other terms and conditions that will protect and promote the
public health, safety, and welfare of all persons in the City.
4-34-6: Permitted zones—Distance and other conditions for approval.
Licensed Premises of any license classification type, as specified in Business and
Professions Code section 26050, and in this chapter, shall be' allowed,
maintained, or operated in the City. If there is a conflict between the requirements
of this. chapter and any other chapter, the requirements of this chapter shall
prevail.
A. Manufacturinq Site.
I. No manufacturing site shall be located within six hundred feet of a school, day-
care center, or youth center, within fifty feet of a residential zone, in conformance
with state law.
2. Subject to the distance and other requirements of this chapter and the Code, a
manufacturing site may only be located on a property within the M Manufacturing
zone, and following the application for and granting of a development agreement
by the city council and a business permit in accordance with this chapter. The
proposed use will comply with the minimum requirements set forth in this chapter
for distance separations between manufacturing sites and other specific land
uses.
3. All manufacturing of commercial cannabis shall occur in an enclosed locked
structure. All manufacturing of cannabis outdoors within the city is prohibited.
4. Manufacturing sites shall not exceed the square footage authorized pursuant to
the controlling development agreement.
5. From a public right-of-way, there should be no exterior evidence of the
manufacture of commercial cannabis of any type or kind, except for any signage
authorized by this Code..
6. All manufacturing sites shall comply with the city's lighting standards including,
without limitation, fixture type, wattage, illumination levels, shielding, and secure
the necessary approvals and permits as needed.
7. All windows on the Licensed Premises of the manufacturing site shall be
appropriately secured and all commercial cannabis securely stored.
8. A manufacturing site, all operations conducted therein, and all equipment used
must be in compliance with all applicable state and local laws, including all
building, electrical, and fire codes.
9. If hazardous materials, flammable gas, flammable liquefied gas, flammable and
combustible liquids, or other flammable material, as those terms are defined in
CFC Section 202, are to be used in the processing of commercial cannabis, then
the. provisions of CFC Section 407 shall be applicable where hazardous materials
subject to permits under CFC Section 50 (Hazardous Materials) are located on
the Licensed Premises or where required by the fire department official.
10. Storage, use and handling of compressed gases in compressed gas containers,
cylinders, tanks and systems shall comply with CFC Chapter 53. Partially full
compressed gas containers, cylinders or tanks containing residual gases shall be
.considered as full for the purposes of the controls required. Compressed gases
classified as hazardous materials shall also comply with CFC Chapter 50 for
general requirements and CFC Chapter 53 addressing specific hazards, including
CFC Chapter 58 (Flammable Gases), CFC Chapter 60 (Highly Toxic and Toxic
Materials), CFC Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic
Fluids) and CFC Chapter 64 (Pyrophoric Materials). Prevention, control and
mitigation of dangerous conditions related to storage, use, dispensing, mixing and
handling of flammable and combustible liquids shall be in accordance with CFC
Chapters 50 and 57.
11. Manufacturing sites are a Group F-1 (Factory Industrial Moderate -Hazard)
Occupancy under the Fire Code. All new construction is required to be fire
sprinkled per the Fire Code. For manufacturing sites that will be sited in an
existing structure, an automatic sprinkler system shall be provided throughout all
buildings containing a Group F -I occupancy where one of the following conditions
exists:
a. A Group F-1 fire area exceeds twelve thousand square feet.
b. A Group F-1 fire area is located more than three stories above grade
plane.
C. The combined area of all Group F-1 fire areas on all floors, including any
mezzanines, exceeds twenty-four thousand square feet.
B. Cultivation Sites.
1. No cultivation site shall be located within six hundred feet of a school, day-care
center, park, or youth center, or within fifty feet of a residential zone, in
conformance with state law.
2. Subject to the distance and other requirements of this chapter and the Code, a
cultivation site may only be located on a property within the M Manufacturing
zone, and following the application for and granting of a development agreement
by the city council and a business permit in accordance with this chapter. The
proposed use will comply with the minimum requirements set forth in this chapter
for distance separations between manufacturing sites and other specific land
uses.
3. All cultivation of commercial cannabis shall occur in an enclosed locked structure.
All cultivation of cannabis outdoors within the city is prohibited..
4. Cultivation sites shall not exceed the square footage authorized pursuant to the
permit.
5. From a public right-of-way, there should be no exterior evidence of the cultivation
of commercial cannabis except for any signage authorized by this chapter.
6. All cultivation sites shall comply with the city's lighting standards including, without
limitation, fixture type, wattage, illumination levels, shielding, and secure the
necessary approvals and permits as needed..
7. All windows on the Licensed Premises of the cultivation sites shall be
appropriately secured and all commercial cannabis securely stored.
8. Areas where commercial cannabis is cultivated are wet locations, and the
electrical system in such areas must comply with Title 8 of this code, Article
300.6(D) of the National Electric Code, city and California building codes, fire
codes, electrical codes and all other applicable laws.
9. Cultivation sites are a Group F-1 (Factory Industrial Moderate -Hazard)
Occupancy under the Fire Code. All new construction is required to be fire
sprinkled per the Fire Code. For cultivation sites that will be sited in an existing
structure, an automatic sprinkler system shall be provided throughout all buildings
containing a Group F-1 occupancy where one of the following conditions exists:
a. A Group F-1 fire area exceeds twelve thousand square feet.
b. A Group F-1 fire area is located more than three stories above grade plane.
c. The combined area of all Group F-1 fire areas on all floors, including any
mezzanines, exceeds twenty-four thousand square feet.
C. In addition to a Manufacturing or Cultivation permit, a commercial cannabis
business applicant may apply for another use as permitted by MAUCRSA, a
development agreement approved by city council, and any rules adopted
pursuant thereto, as long as the requested use does not violate Ordinance No.
1632, Section 25-200-1, and Chapter 25 Appendix A of the Lynwood Zoning
Code and the limitations in this Title 4-34.
D. Distribution of Cannabis. No Distributor company will carry or move
cannabis within the city without complying with State Law.
E. Nonconforming Use. Any commercial cannabis business, dispensary of
medical or adult use cannabis, or storefront cannabis retailer established or
operating in the city in violation of this Chapter or the ban established by
Ordinance No. 1632, Section 25-200-1, and Chapter 25 Appendix A of the
Lynwood Zoning Code, shall not be considered a lawful or permitted
nonconforming use, and no such commercial cannabis business shall be eligible
for issuance of a commercial cannabis business permit. Further, any such
unlawfully established commercial cannabis business shall constitute a public
nuisance subject to abatement by the city, pursuant to Title 13 of Chapter 3.
F. Distances. All distances specified in this section shall be measured in the
following manner:.
1. For schools, day-care centers, parks, or youth centers, the distance shall be
measured in a straight line from the subject property line to the closest property
line of the lot on which the cannabis business is to be located without regard to
intervening structures.
2. From residential zones, the distance shall be measured to the nearest point of the
parcel or property in a residential zone to the closest property line of the lot on
which the cannabis business is to be located without regard to intervening
structures.
G. Delivery. If it is permitted under state law, a person may operate a
cannabis non -storefront delivery service if the person obtains a permit from the
City for such activity, and if the person also has a manufacturing permit from the
City. The activity must be conducted as a cannabis delivery -only service,
consistent with state law and regulations, and it can only be conducted from a
Licensed Premises in the City of Lynwood. No in-person sales shall be permitted
at any Licensed Premises, and no. Licensed Premises shall be open to the public.
A permit to conduct a cannabis delivery service will be subject to reasonable
conditions, including but not limited to the types of vehicles that may be used for
deliveries, the qualifications of drivers, and limits on the amount of cannabis
products that an individual may purchase. This section creates no vested right to
engage in any such activity or business. This activity shall not be considered a
dispensary. This is intended as an exceptional measure, notwithstanding any
other provision of the Lynwood Municipal Code, to ensure the City's residents
have safe and reliable access to cannabis products.
4-34-7: No Transfer or Change in Ownership or Location.
A. Any owner of a commercial cannabis business who obtains a permit under
this chapter may not sell, transfer, pledge, assign, grant an option, or otherwise
dispose of his or her ownership interest in the commercial cannabis business
covered by any permit issued under this chapter..
B. Persons permitted pursuant to the provisions of this chapter or those
making application for such permits, must demonstrate proof of lawful possession
of the location. Evidence of lawful possession consists of properly executed
deeds of trust, leases, or other written documents.
C. The location shall only be the geographical area that is specifically and
accurately described in executed documents verifying lawful possession. No
Licensee is authorized to relocate to other areas or units within a building
structure without first filing a change of location .application and obtaining
approval from the city council regardless of any possessory interest or right to
possession to such additional space. No Licensee shall add additional contiguous
units or areas, thereby altering the initially -approved premises, without filing an
application to modify the location on forms prepared by the City Manager,
including any applicable processing fee.
D. Subletting Not Authorized. No Licensee is authorized to sublet any portion
of any Licensed Premises for any purpose, unless all necessary forms and
application to modify the existing location to accomplish any subletting have been
approved by the city council.
4-34-8: Changing, Altering, or Modifying Location
A. Application Required to Alter or Modify Licensed Premises. After issuance
of a permit, the licensee shall not make any physical change, alteration, or
modification of the Licensed Premises that materially or substantially alters the
location, production estimates, or the usage of the location from the plans
originally approved with the development agreement, without the prior written
approval of the city council or its designee. The licensee whose premises are to
be materially or substantially changed is responsible for filing an application for
approval on current forms provided by the Licensed Premises.
B. What Constitutes a Material Change. Material or substantial changes,
alterations, or modifications requiring approval include, but are not limited to, the
following:
.1. Any increase or decrease in the total physical size or capacity of the location;
2. The sealing off, creation of or relocation of a common entryway, doorway,
passage or other such means of public ingress and/or egress, when such
common entryway, doorway or passage alters or changes Limited Access Areas,
such as the cultivation, harvesting, manufacturing, or sale of commercial cannabis
or cannabis -infused product within the Licensed Premises;
3. The installation or replacement of electric fixtures or equipment, the lowering of a
ceiling, or electrical modifications made for the purpose of increasing power
usage to enhance cultivation activities.
C. Application. The city council or its designee may grant approval for the
types of .changes, alterations, or modifications described herein upon the filing of
an application by the Licensee, and payment of any applicable fee. The Licensee,
must submit all information requested by the city council or its designee including
but not limited to, documents that verify the following:
1. The Licensee, will continue to have exclusive possession of the premises, as
changed, by ownership, lease, or rental agreement, and sole control of all
production; and
2. The proposed change conforms to any and all City restrictions related to the time,
manner, and place of regulation of the commercial cannabis activity.
4-34-9: Grounds for denial of permit—Additional conditions imposed
A. The city manager or designee may reject an application upon making any of
the following findings:
1. The applicant made one or more false or misleading statements or omissions on
the registration application or during the application process;
2. The applicant's business entity, if applicable, is not properly organized in strict
compliance pursuant to the applicable law, rules and regulations;
3. The applicant fails to meet the requirements of this chapter or any regulation
adopted pursuant to this chapter;
4. The applicant's facility or its location is in violation of any building, zoning, health,
safety, or other provision of this code, or of any state or local law which
substantially affects the public health, welfare, safety, or morals, or the facility or
its location is not permitted in the proposed area, or the issuing or continuation of
a permit would be contrary to the public health, welfare, safety, or morals;.
5. The applicant, or any of its officers, directors, owners, managers, or employees is
under twenty-one (21) years of age;
6. The applicant, or any of its officers, directors, or owners, or any person who is
managing or is otherwise responsible for the activities of the Licensed Premises,
or any employee who participates in the cultivation, processing, manufacturing,
distribution, delivery, or transporting of cannabis or who participates in the daily
operations of the commercial cannabis facility, has been convicted of a violent
felony, a felony or misdemeanor involving fraud, deceit, embezzlement, or moral
turpitude, or the illegal use, possession, transportation, distribution or similar
activities related to controlled substances, as defined in the Federal Controlled
Substances Act, with the exception of medical cannabis related offenses for which
the conviction occurred after the passage of the Compassionate Use Act of 1996;
7. The applicant, or any of its officers, directors, owners, or managers, is a licensed
physician making patient recommendations for medical cannabis;
8. The applicant, or any of its officers, directors, owners, or managers has been
sanctioned by the city, the state of California, or any county for unregistered
medical cannabis activities or has had a registration revoked under this chapter in
the previous three (3) years;
9. The applicant did not pay to the city the required application and processing fees.
10. The applicant has had a license application denied, or a license revoked or
suspended by the State of California.
11. Good cause exists to reject the application, as defined in this chapter.
12. Applicant's application does not reflect the purpose of this chapter, to promote the
health, safety, morals, and general welfare of residents and businesses within the
city.
4-34-10: Security
A. General Security Requirements
1. Security cameras shall be installed and maintained in good working
condition, and used in an on-going manner with at least 240 continuous hours of
digitally recorded documentation in a format approved by the City Manager. The
cameras shall be in use 24 hours per day, 7 days per week. The areas to be
covered by the security cameras include, but are not limited to, the storage areas,
manufacturing or cultivation areas, all doors and windows, and any other areas as
determined by the City Manager.
2. The lease/business space shall be alarmed with a reliable, commercial
alarm system that is operated and monitored by a security company or alarm
business that is operating in full compliance with Chapter 3-1 of this Code.
3. Entrance to any storage areas shall be locked at all times, and under the
control of Licensee's staff.
4. The business entrance(s) and all window areas shall be illuminated during
evening hours. The applicant shall comply with the City's lighting standards
regarding fixture type, wattage, illumination levels, shielding, etc., and secure the
necessary approvals and permits as needed.
5. All windows on the Licensee's building shall be appropriately secured and
all product securely stored.
6. Each 'Licensee shall implement a system to track the cultivation and
manufacturing of cannabis in order to prevent the Licensee from diverting or
transporting cannabis to any location not authorized by State Laws and any local
law or regulation.
7. All waste and disposal containers shall be locked at all times and stored in
a secure area, and under the control of Licensee's staff.
B. Security Alarm Systems — Minimum Requirements
1. ' Each Licensed Premises shall have a Security Alarm System, installed by
a licensed alarm company, on all perimeter entry points and perimeter windows.
2. Each Licensed Premises must ensure that its location is continuously
monitored. Licensed Premises may engage the services of an outside vendor to
fulfill this requirement.
3. The Licensed Premises shall maintain up to date and current records and
existing contracts on the premises that describe the location and operation of
each security alarm system, a schematic of security zones, the name of the
licensed alarm company, and the name of any vendor monitoring the premises..
4. Upon request, each Licensed Premises shall make available to the City
Manager or any state or local law enforcement agency, for a purpose authorized
by this chapter or any state or local law enforcement purpose, all information
related to security alarm systems, recordings, monitoring, and alarm activity..
C. Lock Standards — Minimum Requirement. At all points of ingress and
egress, the Licensee shall ensure the use of commercial -grade, nonresidential
door locks.
D. Video surveillance requirements:
1. Prior to exercising the privileges of a permit under this chapter, an
applicant must install fully operational video surveillance and camera recording
system. The recording system must record in digital format and meet the
requirements outlined in this Section.
2. All video surveillance records and recordings must be stored in a secure
area that is, only accessible to the management staff of Licensed Premises.
3. Video surveillance records and recordings must be made available upon
request to the City Manager or any other state or local law enforcement agency
for a purpose authorized by this chapter or for any other state or local law
enforcement purpose.
4. Video surveillance records shall be held in confidence by all employees
and representatives of the City Manager, except that the City Manager may
provide such records and recordings to any other state or local law enforcement
agency for
a purpose authorized by this Chapter or for any other state or local law enforcement
.purpose.
5. A sign shall be posted in a conspicuous place near each point of public
access which shall be not less than 12 inches wide and 12 inches long,
composed of letters not less than one inch it height, stating "All Activities
Monitored by Video Camera" or 'These Premises Are Being Digitally Recorded"
or otherwise advising all persons . entering the Licensed Premises that a video
surveillance and camera recording .system is in operation at the MCCC and
recording all activity as provided in this Section.
6. The Licensed Premises should use video surveillance equipment and a
camera system that can be accessed remotely by local law enforcement and the
City, as specified in each development agreement.
E. Video Surveillance Equipment
1. Video surveillance equipment shall, at a minimum, consist of digital or
network video recorders, cameras capable of meeting the recording requirements
described in this rule, video monitors, digital archiving devices, and a color printer
capable of delivering still photos.
2. All video surveillance systems must be equipped with a failure notification
system that provides prompt notification to the Licensed Premises of any
prolonged surveillance interruption and/or the complete failure of the surveillance
system.
3. Licensed Premises are responsible for ensuring that all surveillance
equipment is properly functioning and maintained so that the playback quality is
suitable for viewing and the surveillance equipment is capturing the identity of all
individuals and activities in the monitored areas.
4. All video surveillance equipment shall have sufficient battery backup to
support a minimum of four hours of recording in the event of a power outage.
F. Placement of Cameras and Required Camera Coverage
1. Camera placement shall be capable of identifying activity occurring within 20 feet
of all points of ingress and egress and shall allow for the clear and certain
identification of any individual and activities on the Licensed Premises.
2. All entrances and exits to the facility shall be recorded from both indoor
and outdoor vantage points.
3. The system shall be capable of recording all pre -determined surveillance
areas in any lighting conditions. If the Licensed Premises has a commercial
cannabis cultivation area, a rotating schedule of lighted conditions and zero -
illumination can occur as long as ingress and egress points to those areas remain
constantly illuminated for recording purposes.
4. Areas where commercial cannabis is grown, tested, cured, manufactured,
or stored shall have camera placement in the room facing the primary entry door
at a height which will provide a clear unobstructed view of activity without sight
blockage from lighting hoods, fixtures, or other equipment.
5. Cameras shall also be placed at each location where weighing, packaging,
transport, preparation, or tagging activities occur.
6. At least one camera must be dedicated to record the access points to the
secured surveillance recording area.
7. All outdoor cultivation areas must meet the same video surveillance
requirements applicable to any other indoor Limited Access Areas.
G. Location and Maintenance of Surveillance Equipment
1. Surveillance recording equipment must be housed in a designated, locked
and secured room or other enclosure with access limited to authorized
employees, agents of the City Manager, state or local law enforcement agencies
for a purpose authorized by this chapter or for any other state or local law
enforcement purpose,. and service personnel or contractors.
2. Licensed Premises must keep a current list of all authorized employees
and service Personnel who have access to the surveillance system and/or room
on the Licensed Premises. Licensed Premises must keep a surveillance
equipment maintenance activity log on the Licensed Premises to record all
service activity including the identity of the individual(s) performing the service,
the service date and time and the reason for service to the surveillance system.
3. Off-site monitoring and video recording storage of the Licensed Premises
or an independent third -party is authorized as long as standards exercised at the
remote. location meets or exceeds all standards for on-site monitoring.
4. Each Licensed Premises located in a common or shared building must
have a ..separate surveillance room/area that is dedicated to that specific
Licensed Premises. The facility that does not house the central surveillance room
is required to have a review station, printer, and map of camera placement on the
premises. All minimum requirements for equipment and security standards as set
forth in the section apply to the review station.
H. Video Recording and Retention Requirements
1. All camera views of all recorded areas must be continuously recorded 24
hours a day.
2. All surveillance recordings must be kept for a minimum of 30 days and be
in a format that can be easily accessed for viewing. Video recordings must be
archived in a format that ensures authentication of the recording as legitimately -
captured video and guarantees that no alteration of the recorded image has taken
place.
3. The surveillance system or equipment must have the capabilities to
produce a color still photograph from any camera image, live or recorded, of the
Licensed .Premises.
4. The date and time must be embedded on all surveillance recordings
without significantly obscuring the picture.
5. Time is to be measured in accordance with the official United States time
established by the National Institute of Standards and Technology and the U.S.
Naval Observatory at: http://www.time.gov/timezone.cgi?Mountain/d/-7fjava.
6. After the 30 -day surveillance video retention schedule has lapsed,
surveillance video recordings must be erased or destroyed prior to being
discarded or disposed of for any other purpose. Surveillance video recordings
may not be destroyed if the Licensed Premises knows or should have known of a
pending criminal, civil, or administrative investigation or any other proceeding for
which the recording may contain relevant information.
I. Other Records
1. All records applicable to the surveillance system and cannabis tracking system
shall be maintained on the Licensed Premises. At a minimum, Licensed Premises
shall maintain a map of the camera locations, direction of coverage, camera
numbers, surveillance equipment maintenance activity log, user authorization list
and operating instructions for the surveillance equipment.
4-34-11: Fees and charges.
A. Prior to operating in the city, the operator of each Licensed Premises shall
timely and fully pay all fees associated with the establishment of that business.
The fees shall be as set forth in the schedule of fees and charges established by
resolution of the city council, including, but not limited to, the following:
1. Application fee for accepting a registration application; due and payable in
full at the time an application is submitted;
2. Processing fee for the cost to the city of processing an application and
reviewing, .investigating and scoring each application in accordance with any
evaluation. system to determine eligibility for issuance of a Permit; due and
payable in full at the time a registration application is submitted;.
3. Permit issuance fee for the cost to the city of preparing a development
agreement, city council review and approval of the development agreement and
the Permit, and preparation and issuance of the Permit as authorized by the city
council, due and payable,in full at the time the city issues a Permit; -
4. Amended registration fee for the cost to the city of reviewing -amendments
or changes to the registration form previously filed on behalf of the Licensed
Premises; due and payable in full at the time amendments or changes to any
Permit form is submitted to the city;
5. Permit renewal fee for the cost to the city of processing an application to
renew a Permit; due and payable in full at the time application is made to renew a
Permit;
6. Any fees for inspection or investigation that are not included within the
other fees associated with registration; due and payable in full upon request of the
city; and
7. Any fees set forth in the applicable development agreement.
4-34-12: Limitations on City's liability
A. To the fullest extent permitted by law, the city shall not assume any liability
whatsoever, with respect to approving any permit pursuant to this chapter or the
operation of any commercial cannabis facility approved pursuant to this chapter.
B. As a condition of approval of a permit as provided in this chapter, the
applicant or its legal representative shall:
1. Execute an agreement indemnifying the city from any claims, damages,
injuries, or liabilities of any kind associated with the registration or operation of the
commercial cannabis facility or the prosecution of the commercial cannabis facility
or its owners, managers, directors, officers, employees, or its qualified patients or.
primary caregivers for violation of federal or state laws;
2. Maintain insurance in the amounts and of the types that are acceptable to
the city manager or designee;
3. Name the city as an additional insured on all city required insurance
policies;
4. Agree to defend, at its sole expense, any action against the city, its agents,
officers, and employees related to the approval of a regulatory permit; and
5. Agree to reimburse the city for any court costs and attorney fees that the
city may be required to pay as a result of any legal challenge related to the city's
approval of a regulatory permit. The city may, at its sole discretion, participate at
its own expense in the defense of any such action, but such participation shall not
relieve the operator of its obligation hereunder
4-34-13. Inspections
A. The City Manager, law enforcement, or their designees shall have the right
to enter all Licensed Premises from time to time unannounced during the facility's
hours of operation for the purpose of making reasonable inspections to observe
and enforce compliance with this chapter, to inspect and copy records required to
be maintained under this chapter, or to inspect, view, and copy recordings made
by security cameras, all without requirement for a search warrant, subpoena, or
court order, and subject to appropriate fees as specified in the development
agreement of under the Lynwood Municipal Code.
B. Operation of a Licensed Premises in noncompliance with any conditions of
approval or the provisions of this chapter shall constitute a violation of the code
and shall be enforced pursuant to the provisions of this code.
C. The City Manager or designee may summarily suspend or revoke a Permit,
or disqualify an applicant from the registration process, or elect not to renew a
regulatory permit if any of the following, singularly or in combination, occur:
1. The City Manager or designee determines that the commercial cannabis
facility has failed to comply with any requirement of this chapter or any condition
of approval or a circumstance or situation has been created that would have
permitted the city manager or designee to deny the regulatory permit under this
chapter or elect not to renew or revoke the permit under this chapter;
2. The Licensed Premises or applicant has conducted itself or is being
conducted in a manner that creates or results in a public nuisance;
3. The Licensed Premises ceased operations for more than 90 calendar days,
including during change of ownership proceedings;
4. Ownership is changed without the new owners applying for and securing a
new permit under this chapter;
5. The Licensed Premises relocates to a different location or premises; and
6. The Licensed Premises fails to allow inspection and/or copying of the
security. recordings, the activity logs and records required under this chapter, or
the premises by authorized city officials.
D. Abatement
The city shall initiate abatement proceedings as authorized by the Code if
necessary to correct any violation of this chapter., Code, or State Laws.
E. Violation deemed misdemeanor—penalty.
Any person violating any of the provisions of this chapter or any applicable rule in
this chapter or Code, shall be guilty of a misdemeanor, and upon conviction
thereof shall be punishable by the maximum penalties provided for in Section 19
of the Penal Code.
4-34-14: Testing
A. Testing Rules and Regulations. The city manager is authorized to
formulate, adopt, and amend from time to time, rules and regulations regarding
the safety and potency of commercial cannabis distributed, dispensed, cultivated
or manufactured at any Licensed Premises operating within the City. The purpose
of such rules and regulations is to verify that any cannabis in any Licensed
Premises is free of disallowed pesticides, fungicides, and microbiological
organisms such as mold, bacteria, and fungus, and to verify the potency of such
cannabis.
B. Testing Centers. The City Manager is authorized on behalf of the City to
contract with one or more independent testing laboratories to assist the City
Manager in the formulation of the rules and regulations required under this
Section and to perform periodic and random testing of cannabis at each Licensed
Premises operating in the City.
C. Samples on Demand. Each Licensed Premises shall, upon request of the
City Manager, submit a sufficient quantity of cannabis to a recognized testing
facility retained by the City Manager to perform laboratory or chemical analysis of
the subject cannabis. The testing facility shall maintain the testing results as part
of its records. The City Manager will notify the Licensee of the results of the
analysis.
4-34-15: Appeals
Any decision regarding or pertaining to the permit process set forth in this chapter,
or any action taken by the city manager or designee pursuant hereto, may be
appealed to the city council. Such appeal shall be taken by filing with the city
clerk, within ten (10) days after notice of the action or decision complained of has
been issued, a written statement setting forth the grounds for the appeal. The city
clerk shall transmit the written statement to the city council and at its next regular
meeting the council shall set a time and place for a hearing on the appeal. Notice
of the time and place of such hearing shall be mailed to the appellant. The
decision of the city council on such appeal shall be final and binding on all parties
concerned.
4-34-16: Statewide Regulation.
This chapter, and the provisions herein, shall be read consistently with any
statewide regulation of medical and/or adult use cannabis/marijuana that is
promulgated by the legislature or by voter approval in the future. In the event that
any state law is passed pursuant to the decriminalization or legalization, for
recreational use, of cannabis, this ordinance shall govern the conduct of those
businesses allowed to cultivate, manufacture, test, or distribute cannabis under
such law.
4-34-17: Interpretation.
The provisions of this chapter shall be read consistent with all the provisions of
Federal and State laws, this chapter, as well as this Code. At no time shall a
commercial cannabis business in compliance with state law and this code be
deemed to be an unlawful business.
4-34-18: Severability.
Should any provision of this chapter, or its application to any person or
circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on 'my
other provision of this chapter or the application of this chapter to any other
person or circumstance and, to that end, the provisions hereof are severable.
4-34-19: Effective Date.
This Ordinance shall take effect thirty days after the date of its adoption.
4-34-20: City Clerk Certification.
The City Clerk shall certify as to the adoption of this City Ordinance and cause it
to be published or posted according to law.
First read at a regular meeting of the City Council held on the 19th day of
December, 2017 and adopted and ordered published at a regular meeting of said
Council on the 2nd of January, 2018.
PASSED, APPROVED and ADOPTED on this 20d day of January, 2018.
ATTEST:
L� G� 1Ofx.
LI.10 /7
APPROVED AS TO FORM:
Noel Tapia, City Attor ey
rA
Luis SolachLvMayor
APPROVED AS TO CONTENT:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
above and foregoing Ordinance was duly adopted by the City Council of the City
of Lynwood at its regular meeting held on the 2nd day of January, 2018.
AYES: COUNCIL MEMBERS CASTRO, SANTILLAWBEAS, MAYOR
PRO TEM HERNANDEZ AND MAYOR SOLACHE
NOES: COUNCIL MEMBER ALATORRE
ABSENT: NONE
ABSTAIN: NONE
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, and Clerk of the City Council
of said City, do hereby certify that the above and foregoing is a full, true and
correct copy of Ordinance No. 1707 in my office and that said Ordinance was
adopted on the date and by the vote therein stated. Dated this 2nd day of
January, 2018.
Maria Quinonez, City Clerk