HomeMy Public PortalAboutOrd. 1751ORDINANCE NO. 1751
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
ADDING SECTION 35 TO CHAPTER 4 LICENSING AND BUSINESS
REGULATIONS OF THE LYNWOOD MUNICIPAL CODE RELATING TO
THE LICENSING AND REGULATION OF CANNABIS RETAILERS IN
THE CITY OF LYNWOOD AND ACCOMPANYING AMENDMENTS TO
SECTION 34 OF CHAPTER 4 LICENSING AND BUSINESS
REGULATIONS OF THE LYNWOOD MUNICIPAL CODE
WHEREAS, Section 7 of Article XI of the California Constitution authorizes the City
of Lynwood (the "City") to make and enforce within its jurisdictional limit ordinances and
regulations not in conflict with general laws to protect and promote the public health,
safety, and welfare of its residents; and
WHEREAS, on November 8, 2016, California voters approved Proposition 64,
titled "The Adult Use of Marijuana Act" and enacted a State -level statutory scheme for
legalizing, controlling, and regulating commercial cannabis activity related to
nonmedicinal cannabis for use by adults twenty-one (21) years of age and older, including
the storefront retail sale of nonmedical cannabis for use by adults twenty-one (21) years
of age and older, and on June 27, 2017, the Medicinal and Adult Use Cannabis Regulation
and Safety Act was signed into law, which provides a comprehensive regulatory
framework for licensing, control, and taxation of commercial cannabis activity related to
medicinal and nonmedicinal use in California; and
WHEREAS, on December 20, 2016, the City Council of the City of Lynwood (the
"City Council") adopted Ordinance No. 1688 adding Chapter 4-34 to the City of Lynwood
Municipal Code (the "City Municipal Code") and accepting Planning Commission
recommendations, with Chapter 4-34 of the City Municipal Code being subsequently
amended by Ordinance No. 1700 (adopted by the City Council on September 19, 2017)
and by Ordinance No. 1707 (adopted by the City Council on January 2, 2018), licensing
and regulating all forms of commercial cannabis activity, except the storefront retail sale
of medicinal and nonmedicinal cannabis; and
WHEREAS, Chapter 4-34 of the City Municipal Code presently prohibits the
storefront retail sale of medicinal and nonmedicinal cannabis; and
WHEREAS, the City Council desires to establish a strong and effective regulatory
system with regard to the storefront retail sale of medicinal and nonmedicinal cannabis
that protects the public health, safety, and environmental resources, provides a consistent
regulatory pathway for the storefront retail sale of medicinal and nonmedicinal cannabis
consistent with State regulations, fosters healthy, diverse, and economically viable the
cannabis retailers that contribute to the local economy, and ensures that environmental,
1
public health, safety and nuisance factors related to the storefront retail sale of medicinal
and nonmedicinal cannabis are adequately addressed; and
WHEREAS, in furtherance of these goals, the City Council desires to add Chapter
4-35 to the City Municipal Code and amend Chapter 4-34 of the City Municipal Code to
establish development standards and permitting requirements to allow the storefront retail
sale of medicinal and nonmedicinal cannabis within limited City zoning districts; and
WHEREAS, the City Council further desires to implement reasonable regulations
that are intended to address the secondary negative impacts to the City and its resources,
including, nuisance impacts and criminal impacts that may result from the operation of
cannabis retailers in the City and to ensure that the effects such impacts may have on the
health, safety, and welfare of businesses and residents within the City are mitigated to
the greatest extent possible; and
WHEREAS, the City Council is aware that both community benefits and potential
adverse impacts may result from the operation of cannabis retailers in the City, and,
therefore, desires to: (1) help ensure that all such impacts are adequately mitigated and
offset by the potential community benefits those businesses can provide to the City and
its residents and (2) to help provide sufficient code enforcement and law enforcement
resources to address such adverse impacts and to ensure compliance with all applicable
laws and regulations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
ORDAIN AS FOLLOWS:
SECTION 1. This Ordinance shall be known and may be cited as "The Lynwood
Cannabis Retail Sales Regulation and Public Safety Ordinance" (the "Ordinance").
SECTION 2. Purpose and Intent. The purpose and intent of this Ordinance is to
accommodate the needs of medically -ill persons in need of cannabis for medicinal
purposes, as advised and recommended by their health care provider(s), and adults over
the age of twenty-one (21), and to implement State of California ("State") law, which
includes, but is not limited to the provisions of the Medicinal & Adult -Use Cannabis
Regulation & Safety Act (hereinafter, "MAUCRSA"), as may be amended and augmented
under State law, while imposing regulations on the conduct of business and use of land
to protect the City of Lynwood's (the "City") neighborhoods, residents, and businesses
from negative impacts. It is a further purpose and intent of this Ordinance to regulate the
retail sale of cannabis and cannabis products in a manner which is responsible, which
protects the health, safety, and welfare of the residents of the City, and which enforces
rules and regulations consistent with State law. In part to meet these objectives, a retail
cannabis business permit shall be required to own or to operate a cannabis retailer within
the City. Further, this Ordinance's requirement for a cannabis retailer to possess a retail
cannabis business permit is in addition to any other permits, licenses, and approvals
2
which may be required to conduct business in the City, and is in addition to any permits,
licenses, and approvals required under State or County of Los Angeles ("County") law.
SECTION 3. Legal Authority. Pursuant to Section 7 of Article XI of the State
Constitution, and the provisions of the MAUCRSA, as may be amended and augmented
under State law and any subsequent State legislation regarding the same, the City is
authorized to adopt ordinances that establish standards, requirements, and regulations
for local licenses and permits for cannabis retailers. Except as otherwise provided in this
Ordinance, any standards, requirements, and regulations regarding health and safety,
security, and worker protections established by the State, or any of its departments or
divisions, shall be the minimum standards applicable to the retail sale of cannabis and
cannabis products in the City.
SECTION 4. Chapter 4 (Licensing and Business Regulations) of the City Municipal
Code is hereby amended by adding Chapter 4-35 (Cannabis Retailers) to read as follows:
Chapter 4-35: CANNABIS RETAILERS
4-35.1: Cannabis retailers prohibited unless specifically authorized.
a. Except as specifically authorized by this Chapter 4-35, to the fullest extent
permitted by State law, the City expressly prohibits any and all cannabis retailers within
the City.
b. Nothing in this Chapter 4-35 shall be construed or interpreted to permit the
commercial possession, furnishing, manufacture, cultivation, distribution, processing,
storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of
industrial hemp.
c. To the extent expressly authorized in this Chapter 4-35 of the City Municipal Code,
cannabis retailers are permitted in the City, subject to the satisfaction of all requirements
set forth in this Chapter 4-35, MAUCRSA, and all other applicable State and local laws,
rules, and regulations.
4-35.2: Compliance with laws.
It is the responsibility of the owners, managers, officers, employees, and agents of any
cannabis retailer to ensure that it is operating in a manner compliant with all applicable
State and local laws and any regulations promulgated thereunder. Nothing in this Chapter
4-35 shall be construed as in conflict with State law.
4-35.3: Definitions.
3
When used in this Chapter 4-35, the following words shall have the meanings ascribed to
them as set forth herein. Words and phrases not specifically defined below shall have
the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by
common usage. For definitions of nouns, the singular shall also include the plural; for
definitions of verbs, all verb conjugations shall be included. Any reference to State
statutes includes any regulations promulgated thereunder and is deemed to include any
successor or amended version of the referenced statute or regulatory provision.
"Applicant" means the person applying for the retail cannabis business permit under this
Chapter 4-35 (not the owners or the managers of the applicant).
"Cannabis" has the same meaning as defined in Chapter4-34 of the City Municipal Code.
"Cannabis Concentrate" means cannabis that has undergone a process to concentrate
one or more active cannabinoids, thereby increasing the product's potency. Resin from
granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter 4-
35. A cannabis concentrate is not considered food, as defined by Section 109935 of the
State Health & Safety Code, or drug, as defined by Section 109925 of the State Health &
Safety Code.
"Cannabis Product" means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not limited to,
concentrated cannabis, or an edible or topical product containing cannabis or
concentrated cannabis and other ingredients.
"Cannabis Retailer" or "Retailer" or "Dispensary" means a location where cannabis,
cannabis products, or devices for the use of cannabis or cannabis products are offered,
either individually or in any combination, for retail sale, including a cannabis retailer
establishment that delivers cannabis and cannabis products.
"Caregiver" or "Primary Caregiver" has the same meaning as that term is defined in
Section 11362.7 of the State Health & Safety Code.
"City" means the City of Lynwood.
"City Attorney" means the City Attorney of the City of Lynwood or his or her designee(s).
"City Council" means the City Council of the City of Lynwood.
"City Manager" means the City Manager of the City of Lynwood or his or her designee(s).
"Commercial Cannabis Activity" has the same meaning as defined in Chapter 4-34 of
the City Municipal Code
4
"Commercial Cannabis Business" has the same meaning as defined in Chapter 4-34
of the City Municipal Code.
"County" means the County of Los Angeles.
"Customer" means a natural person twenty-one (21) years of age or over or a natural
person eighteen (18) years of age that is a qualified patient or primary caregiver.
"Day Care Center" or "Childcare Facility" means a facility, other than a family day care
home, serving infant, toddler, preschool, and school age children, licensed by the State
Department of Social Services pursuant to Section 1596.951 of the State Health & Safety
Code. Pursuant to the authority delegated by the State to the City under Section 26054(b)
of the State Business & Professions Code, this definition of "Day Care Center" under this
Chapter 4-35 shall override the definition of "Day Care Center" in MAUCRSA at Section
26001 of the State Business & Professions Code.
"Delivery" has the same meaning as defined in Chapter 4-34 of the City Municipal Code.
"Edible Cannabis Product" means a cannabis product that is intended to be used, in
whole or in part, for human consumption, including, but not limited to, chewing gum, but
excluding products set forth in Division 15 (commencing with Section 32501) of the State
Food & Agriculture Code. An edible cannabis product is not considered food, as defined
by Section 109935 of the State Health & Safety Code, or drug, as defined by Section
109925 of the State Health & Safety Code. An edible cannabis product shall not be
deemed to be adulterated pursuant to Section 26131 of the State Business & Professions
Code solely because it contains cannabis.
"Employee" means each natural person employed by a cannabis retailer who is a part-
time, full-time, temporary, or permanent employee.
"Gross receipts" means, except as otherwise specifically provided herein, whether
designated as a sales price, royalty, rent, commission, dividend, or other designation, the
total amount (including all receipts, cash, credits, and property of any kind or nature)
received or payable for sales of goods, wares, or merchandise without any deduction
therefrom on account of the cost of the property sold, the cost of materials used, labor, or
service costs, interest paid or payable, losses, or any other expense whatsoever.
However, the following shall be excluded from gross receipts:
a. Cash discounts where allowed and taken on sales;
b. Any tax required by law to be included in or added to the purchase price and
collected from the consumer or purchaser;
5
c. Such part of the sale price of any property returned by purchasers to the seller as
refunded by the seller by way of cash or credit allowances or return of refundable deposits
previously included in gross receipts;
d. Receipts derived from the occasional sale of used, obsolete, or surplus trade
fixtures, machinery, or other equipment used by the taxpayer in the regular course of the
taxpayer's business;
e. Cash value of sales, trades, or transactions between departments or units of the
same business;
f. Receipts of refundable deposits, except that such deposits when forfeited and
taken into income of the business shall not be excluded when in excess of one dollar; and
g. Any proceeds resulting from a transfer or change of ownership or control in the
business.
"Labor Peace Agreement" means an agreement between a cannabis retailer and any
bona fide labor organization that, at a minimum, protects the City's proprietary interests
by prohibiting labor organizations and members from engaging in picketing, work
stoppages, boycotts, and any other economic interference with a cannabis retailer. This
Agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona
fide labor organization to communicate with, and attempt to organize and represent, the
cannabis retailer's employees. The Agreement shall provide a bona fide labor
organization access at reasonable times to areas in which the cannabis retailer's
employees work, for the purpose of meeting with employees to discuss their right to
representation, employment rights under State law, and terms and conditions of
employment.
"Licensing Authority" means a State agency responsible for the issuance, renewal, or
reinstatement of State license, or a State agency authorized to take disciplinary action
against a State licensee.
"Liquid Assets" means assets that can be readily converted into cash. "Liquid assets"
include, but are not limited to, the following: funds in checking or savings accounts,
certificates of deposit, money market accounts, mutual fund shares, publicly traded
stocks, and United States savings bonds. "Liquid assets" does not mean household
items, furniture and equipment, vehicles, cannabis or cannabis products, business
inventory, or real property and improvements thereto.
"Manager" means any individual who will be participating in the direction, control, or
management of an applicant or a permittee, including but not limited to, any (i) manager
or managing member or other officer of a limited liability company applicant or permittee
6
or (ii) president, chief executive officer, secretary, treasurer, chief financial officer, or other
officer of a for profit corporation applicant or permittee.
"Marijuana" means "cannabis" as that term is defined in this Chapter 4-35.
"MAUCRSA" means Division 10 (commencing with Section 26000) of the State Business
and Professions Code and any regulations promulgated thereunder.
"Ordinance" means The Lynwood Cannabis Retail Sales Regulation and Public Safety
Ordinance.
"Owner" means any of the following:
a. A person owning in the aggregate equity interests representing twenty (20) percent
or more of the voting power of all outstanding equity in the applicant or a permittee;
b. The president, chief executive officer, secretary, treasurer, or chief financial officer
of a nonprofit applicant or permittee; or
c. A member of the board of directors of a nonprofit applicant or permittee.
Notwithstanding the above, every applicant and permittee must have at least one
individual person designated as an "owner" for the purpose of compliance with this
Chapter 4-35, including the review and evaluation of any retail cannabis business permit
application.
"Panic Button" means an emergency electronic contact device which allows an
employee in the event of an ongoing crime, threat, or other emergency to alert a security
guard responsible for providing immediate on -scene assistance.
"Patient" or "Qualified Patient" means a natural person who is entitled to the protections
of Section 11362.5 of the State Health & Safety Code and includes a person issued an
identification card issued pursuant to Article 2.5 of Chapter 4-35 of Division 10 of the State
Health & Safety Code.
"Permittee" means the holder of a valid, City -issued retail cannabis business permit.
"Person" means an individual/natural person, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit and includes the plural as well as the
singular number.
"Person With An Identification Card" shall have the meaning given to that term in
Section 11362.7 of the State Health & Safety Code.
7
"Premises" means the designated structure or structures and land specified in the retail
cannabis business permit application that is owned, leased, or otherwise held under the
control of the applicant or permittee where cannabis retail sales will be or is conducted.
The premises shall be a contiguous area and shall only be occupied by one permittee.
"Public Park" means an outdoor premises containing existing or proposed parks,
including community parks, neighborhood parks, mini -parks, and urban parks that are
currently or proposed to be owned or operated by the City or other governmental agency.
"Public Park" shall not include any youth center.
"Retail Cannabis Business Permit" means a regulatory permit/license issued by the
City pursuant to this Chapter 4-35 to a cannabis retailer and is required before any
cannabis retail sales may be conducted in the City and is made expressly contingent upon
the cannabis retailer's ongoing compliance with all of the requirements of this Chapter 4-
35 and any regulations adopted by the City governing cannabis retail sales.
"Retail Sale(s)" or "Dispensing" means any activity involving the retail sale of cannabis
or cannabis products from a retailer.
"Sale" means any sale, exchange, or barter or other transaction for any consideration.
"School" means as evidenced by the State Department of Education school directory, a
public school instructing children in grades kindergarten through 12, as authorized by the
State Department of Education or a private school instructing children in grades
kindergarten through 12 that has filed a verification of private school affidavit with the
State Department of Education pursuant to Section 33190 of the State Education Code,
excluding any private school in which education is primarily conducted in a private home.
Pursuant to the authority delegated by the State to the City under Section 26054(b) of the
State Business & Professions Code, this definition of "school" under this Chapter 4-35
shall override the definition of "school" used in MAUCRSA or Section 11362.768 of the
Health & Safety Code.
"State" means the State of California.
"State License" means a permit or license issued by the State, or one of its departments
or divisions, under MAUCRSA and any subsequent State legislation regarding the same
to engage in cannabis retail sales.
"Topical Cannabis" means a cannabis product intended for external application and/or
absorption through the skin. A topical cannabis product is not considered a drug as
defined by Section 109925 of the State Health & Safety Code.
8
"Youth Center" means any facility that is operated by a public agency or nonprofit entity
with the sole purpose of providing educational and/or recreational services to minors.
"Youth center" shall not include (a) any public park, (b) any private martial arts, yoga,
ballet, music, or similar studio of this nature, or (c) any private athletic training facility,
pizza parlor, restaurant, video arcade, dentist office, or doctor's office primarily serving
children. Pursuant to the authority delegated by the State to the City under Section
26054(b) of the State Business & Professions Code, this definition of "youth center" under
this Chapter 4-35 shall override the definition of "youth center" in MAUCRSA at Section
26001 of the State Business & Professions Code.
4-35.4: Retail Cannabis Business Permit Required.
a. No person shall operate a cannabis retailer or engage in cannabis retail sales
within the City unless such business or activity is currently in compliance with all
applicable State and local laws, rules, and regulations and the cannabis retailer has all of
the following:
1. A valid City business license to conduct such business or activity;
2. A valid retail cannabis business permit issued by the City pursuant to this
Chapter 4-35 to conduct such business or activity;
3. A valid State license authorizing such business or activity in the City; and
4. A valid certificate of occupancy issued by the City's Building & Safety
Division to conduct the cannabis retail sales at the premises identified in the retail
cannabis business permit.
4-35.5: Number of Authorized Cannabis Retailers Permitted.
a. The City Council may award up to six, retail cannabis business permits within the
City.
b. Nothing in this Chapter 4-35 creates a mandate that the City must authorize any
specific number of retail cannabis businesses permits. The City reserves the discretion
to determine that it is in the best interest of the City to not issue the full number of retail
cannabis business permits authorized in this Section 4-35.5 or to reduce the number of
retail cannabis business permits authorized in this Section 4-35.5. However, the City may
not increase the number of retail cannabis business permits authorized in this Section 4-
35.5, except as required by (i) a judicial remedy or (ii) a vote of the people of the City.
4-35.6: Location and Design Requirements for Cannabis Retailers.
9
Pursuant to the authority delegated by the State to the City under Section 26054(b) of the
State Business & Professions Code and overriding the location and design requirements
contained in Section 26054(b) of the State Business & Professions Code, cannabis
retailers in the City shall be subject to the following location and design requirements:
a. Cannabis retailers shall be a permitted use subject to this Chapter 4-35 on property
(1) located more than six -hundred -fifty (650) feet from any school or day care center, (2)
located more than nine -hundred -fifty (950) feet from any public park or youth center, and
(3) zoned: C -2A (Medium Commercial District), C-3 (Heavy Commercial District), or M
(Manufacturing District), including any overlay zones, in particular any SPA (Specific
Plan Area) covering the C -2A (Medium Commercial District), C-3 (Heavy Commercial
District), or M (Manufacturing District)
b. The distances specified in this Section 4-35.06 shall be the horizontal distance
measured in a straight line from the parcel line of the sensitive use to the closest parcel
line of the lot on which the cannabis retailer is to be located without regard to intervening
structures.
c. Each cannabis retailer shall:
1. Be constructed in a manner that prevents odors to surrounding uses, and
promotes quality design and construction, and consistency with the surrounding
properties. Odors from the cannabis retailer shall not be detectable from outside the
premises and adequate odor control technology shall be utilized;
2. Be provided with adequate electricity, sewerage, disposal, water, fire
protection, and storm drainage facilities for the intended purpose; and
3. Provide and maintain a neighborhood compatibility plan so the City
Manager or designee(s) may find that the cannabis retailer and its operating
characteristics are not detrimental to the public health, safety, convenience, or welfare of
persons residing, working, visiting, or recreating in the surrounding neighborhood and will
not result in the creation of a nuisance.
4-35.7: Cannabis Retailer Application Procedure.
a. The City Manager, pursuant to Section 4-35.22, shall, as a ministerial duty, make
available the necessary forms, adopt any necessary application rules for the submission,
intake, review, and approval of retail cannabis business permit applications for retailers
up to the number of retail cannabis business permits authorized in Section 4-35.5.
b. The City Manager shall, as a ministerial duty, cease acceptance of retail cannabis
business permit applications thirty (30) days after making available the necessary forms
10
and adopting any necessary application rules for the submission, intake, review, and
approval of retail cannabis business permit applications for retailers.
c. The City Manager shall, as a ministerial duty, review timely submitted retailer
applications for the following minimum requirements:
1. Payment of a non-refundable application fee established by resolution of
the City Council;
2. Sufficient evidence of the legal right to use the proposed property for the
proposed use, to include ownership, a lease, sublease, purchase agreement, assignment
of purchase agreement, or lease or purchase option, in the name of the applicant, which
may include nominal consideration and be contingent upon issuance of a retail cannabis
business permit or other approvals. The City shall only consider one applicant per County
Assessor's Identification Number. In the event that more than one applicant applies for
a retail cannabis business permit application at a given property address or a given
County Assessor's Identification Number, the City Manager shall, as a ministerial duty,
only accept the retail cannabis business permit application with the earliest effective date
for the evidence of the legal right to use the proposed property for the proposed use in
the name of the applicant;
3. Sufficient evidence to demonstrate that the proposed property complies
with location and zoning requirements in Section 4-35.6;
4. Proof of funds showing that the Applicant has access and control of over
$1,000,000.00 in liquid assets (which such liquid assets having been under possession
for at least ninety (90) days prior to the date of the application submission under this
Section), which may be shown via a binding legal agreement in the name of the Applicant
such as a promissory note so long as said legal agreement is accompanied by a proof of
funds in the name of a party to the agreement so long as that demonstrates access and
control of over $1,000,000.00 in liquid assets under possession for at least ninety (90)
days prior to the date of the application submission under this Section. Applicants and
Permittees shall not be required to show that the Applicant or Permittee has access and
control of over $1,000,000.00 in liquid assets except on initial application pursuant to this
Section 4-35.7, a change in location application pursuant to Section 4-35.13, or an
ownership transfer application pursuant to Section 4-35.14;
5. A set of plans, including a site development plan, floor plan(s), building
elevations (all four (4) sides), and a conceptual landscape plan with the percentage of
landscaping in the parking lot, setback areas, and tree size and species;
6. Colored interior and elevation renderings;
11
7. A completed background check application and receipt for each owner and
manager of the Applicant pursuant to Section 4-35.18(1); and
8. The following application components: (a) Qualifications of the Applicant's
owners and managers; (b) business and operations plan; (c) security plan; (d) safety plan;
(e) neighborhood compatibility plan; (f) labor and employment plan; and (g) community
benefits plan.
The City Manager shall, as a ministerial duty, reject any retail cannabis business permit
application that fails to meet the minimum requirements contained in this Subsection c,
and applicants shall not have the right to supplement or amend their retail cannabis
business permit applications once the City Manager has closed the window to submit an
application.
d. The City Manager shall, as a ministerial duty review and score any complete
applications pursuant to the following objective review criteria, according to the following
quantitative evaluation scale that holds a total criteria value of 1,000 points:
1. Qualifications of the Applicant's Owners and Managers — 200 points
The City Council finds that a proven track -record of (i) business operations providing
services or operating in the City or (ii) cannabis retailer operations experience, wherever
performed, that successfully generate tax revenue carries out the purpose and intent of
the Ordinance and are, therefore, critical for an applicant to demonstrate the qualifications
of the Applicant's Owners and Managers. Accordingly, 150 of the 200 points awardable
under this Subsection 1 shall only be awarded, as a ministerial duty, (i) if an owner or
owners of the Applicant with an aggregate ownership interest of fifty-one (51) percent or
more is currently at the time of application submission under this Section and since at
least February 1, 2020, the President, CEO, or limited liability company manager of a
business that provides (or has provided) services or operates (or has operated) in the
City and that has generated at least $8,000,000.00 in annual gross receipts as
demonstrated by the most recent tax payment receipts from, tax filings to, or tax returns
filed by the business with a city, county, state, of the federal government or by a letter
from a certified public accountant attesting to the business's gross receipts or (H) if an
owner or owners of the Applicant with an aggregate ownership interest of fifty-one (51)
percent, is currently at the time of application submission under this Section an owner or
owners with an aggregate ownership interest of fifty-one (51) percent of (or is an owner
as a result of being the chief executive officer of a nonprofit entity of) a single licensed
and lawfully operating commercial cannabis retailer operation (excluding any non -retailer
microbusiness, cultivation, manufacturing, distribution, or other non -retailer commercial
cannabis operation components) that has generated at least $5,000,000.00 in gross
receipts in a consecutive six-month period in the year immediately preceding the date of
the application submission under this Section, as demonstrated by tax payment receipts
12
from, tax filings to, or tax returns filed with a city, county, or state or by a letter from a
certified public accountant attesting to the cannabis retailer's gross receipts.
The remaining 100 of the 200 points awardable under this Subsection 1 shall be awarded,
as a ministerial duty, pursuant to the following objective criteria:
a. Up to 50 points — A description of the Applicant's owner(s) and manager(s)
qualifications detailing any experience operating cannabis retailers in any jurisdiction
where cannabis retailers are permitted or special business or professional qualifications
or licenses of the applicant's owner(s) and manager(s) that would add to the quality of
services that the cannabis retailer would provide, including in areas related to cannabis,
such as legal, finance, business ownership/administration, waste management, real
estate development, scientific, or healthcare or wellness fields.
2. Plans, renderings, and overall location — 150 points
The City Council finds that the further a cannabis retailer is located away from youth
centers, the better a cannabis retailer will carry out the purpose and intent of the
Ordinance (in particular the use of land to protect the City's neighborhoods, residents,
and businesses from negative impacts) and that the sensitive use buffer for youth centers
contained in Section 4-35.6 is a minimum rather than an ideal distance to carry out the
purpose and intent of the Ordinance. Accordingly, 75 of the 150 points awardable under
this Subsection 2 shall only be awarded, as a ministerial duty, if an Applicant's proposed
cannabis retailer is located on property located more than one -thousand five -hundred
(1,500) feet from any youth centers identified and measured pursuant to Section 4-35.6
above and Section 14 of the Ordinance.
The remaining 75 of the 150 points awardable under this Subsection 2 shall be awarded,
as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 10 points — A premise diagram in accordance with Section
5006 of Division 42 of Title 16 of the State Code of Regulations.
(b) Up to 10 points — A site development plan that provides information
on existing conditions and proposed improvements to the site and how it
meets or will meet the development standards outlined in Chapter 25 of the
City Municipal Code, including adequate parking. Information on existing
conditions shall include:
1) Exterior photographs showing all sides of any existing
structure(s);
2) Photographs of existing parking areas, landscaping, trash
enclosure, and signage;
13
3) Information on existing use on the .site, including the
addresses, uses, and square footages.
4) Photographs of the existing site if the site is vacant; and
5) Photographs of adjacent properties for context.
(c) Up to 15 points — A floor plan showing information on the existing
layout and proposed layout of the building interior.
(d) Up to 20 points — Building elevations that provide information on
existing conditions and proposed improvements.
(e) Up to 10 points — A conceptual landscape plan with the percentage
of landscaping in the parking lot, setback areas, and tree size and species.
(f) Up to 10 points — Colored interior renderings and exterior elevation
renderings (for both existing and/or proposed improvements).
3. Business and operations plan —100 points
The 75 points awardable under this Subsection 3. shall be awarded, as a ministerial duty,
pursuant to the following objective criteria:
(a) Up to 5 points — A written description of the total square footage of
the facility with estimated square footage of proposed uses.
(b) Up to 10 points — A schedule for beginning operations, including a
narrative outlining any proposed construction improvements and a timeline
for completion.
(c) Up to 15 points — A budget for construction, operation, maintenance,
compensation of employees, equipment costs, utility costs, and other
operating costs.
(d) Up to 10 points — A description of the sources(s) of capital and use(s)
of capital.
(e) Up to 10 points — Pro forma financial statements for at least three (3)
years of operation.
(f) Up to 10 points — A description of the type of products to be sold and
the estimated quantity and value of product(s) to be sold.
14
(g) Up to 15 points — A description of marketing procedures and tactics.
(h) Up to 5 points — A description of day-to-day operations that should
acknowledge both state and local laws and should be consistent with
industry best practices.
(i) Up to 5 points — A description of hours of operation and opening
procedures.
(i)
Up to 5 points — A description of cash handling procedures.
(k) Up to 5 points — A description of inventory control procedures to
include identification of point -of -sale systems, and track and trace software.
(I) Up to 5 points — A description of transportation, loading and
unloading, distribution, or delivery procedures.
4. Security plan — 100 points
The 100 points awardable under this Subsection 4. shall be awarded, as a ministerial
duty, pursuant to the following objective criteria:
(a) Up to 20 points — The security plan shall be prepared by a
professional security consultant.
(b) Up to 10 points — A premises security diagram.
(c) Up to 50 points — A description of access control, inventory control,
cash handling, and other security procedures and security equipment
demonstrating compliance with the security requirements under this
Chapter 4-35.
(d) Up to 10 points — A description of the intrusion alarm and monitoring
system including the name and contact information for the monitoring
company.
(e) Up to 10 points — A description of the services of on -site security
guards to include the (1) number of security guards; (2) the hours security
guards will be on -site; (3) locations where security will be positioned; and
(4) security guard responsibilities.
5. Safety plan —100 points
15
The 100 points awardable under this Subsection 5. shall be awarded, as a ministerial
duty, pursuant to the following objective criteria:
(a) Up to 20 points — The safety plan shall be prepared by a professional
fire prevention and suppression consultant.
(b) Up to 10 points — A premises safety diagram to include (1) a
description/illustration of evacuation routes and (2) location of fire
extinguishers and other fire suppression equipment.
(c) Up to 50 points — A description of safety procedures, training for
emergency situations, and safety equipment demonstrating compliance
with the safety requirements under this Chapter 4-35.
(d) Up to 10 points — Identify all gases, pesticides, and chemicals to be
used and their storage locations.
(e) - Up to 10 points — A description of the firm alarm and monitoring
system including the name and contact information for the monitoring
company.
6. Neighborhood compatibility plan — 150 points
The 75 points awardable under this Subsection 6. shall be awarded, as a ministerial duty,
pursuant to the following objective criteria:
(a) Up to 75 points — A "Good Neighbor Policy" that (1) includes policies
and measures in place to protect adjacent uses from any potential impacts
(e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis
retailer, including addressing parking and traffic impacts and (2) describes
how the cannabis retailer and its operating characteristics will be proactively
managed so the business is not detrimental to the public health, safety,
convenience, or welfare of persons residing, working, visiting, or recreating
in the surrounding area and will not result in the creation of a nuisance.
(b) Up to 25 points — A description of odor mitigation practices to include:
(1) identifying potential sources of odor; (2) a description of odor control
devices and techniques employed to ensure that odors from cannabis are
not detectable beyond the permitted premises; and (3) all proposed staff
odor training and system maintenance.
(c) Up to 25 points — A description of a waste management plan that
includes waste disposal locations within the proposed premises and the
16
applicant's security measures and methods of rendering waste unusable
and unrecognizable.
(d) Up to 25 points — A description of efforts at
sustainability/environmental impact mitigation.
7. Community benefits plan — 100 points
The City Council finds that monetary donations to support City sponsored activities and
programs carry out the purpose and intent of the Ordinance and are, therefore, critical for
an applicant to demonstrate an effective community benefits plan. Accordingly, 80 of the
100 points awardable under this Subsection 7. shall only be awarded if the Applicant
pledges to voluntarily provide a public benefit to a public use (or a combination thereof),
which is defined as a direct financial contribution equal to one (1) percent of projected
gross receipts of the applicant to the following City sponsored programs/causes: (a)
senior citizen programs, (b) City beautification efforts, (c) fund for enforcement of illegal
cannabis operations, (d) public safety, (e) housing programs, (f) recreation services, (g)
infrastructure, (h) general fund, and/or (i) any other proposed City efforts. Beyond the
above, no further direct financial contributions shall be considered as part of an
applicant's community benefits plan.
The remaining 20 of the 100 points awardable under this Subsection 7. shall be awarded,
as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 10 points — A description of a social responsibility plan to
include identification of a community liaison and plans to aide and
participate in the work of local non -profits, community -based organizations,
civic organizations, or social services organizations.
(b) Up to 10 points — A description of a plan to develop a public health
outreach and educational program that outlines the risks of youth use of
cannabis and that identifies resources available to youth related to drugs
and drug addiction.
8. Labor and employment plan — 100 points
The 100 points awardable under this Subsection 8. shall be awarded, as a ministerial
duty, pursuant to the following objective criteria:
(a) Up to 5 points — An organizational chart of showing owners,
managers, and employees.
(b) Up to 5 points — A description of the owner's and manager's roles in
day-to-day operations and decisions.
17
(c) Up to 5 points — A description of the number of employees,
title/position, and their respective responsibilities
(d) Up to 15 points — A description of compensation to employees,
opportunities for continuing education, and employee training.
(e) Up to 20 points — A description of whether the cannabis retailer is
committed to offering employees a living wage.
(f) Up to 15 points — A description of benefits provided to employees
such as health care, vacation, and medical leave, to the degree they are
offered as part of employment.
(g) Up to 5 points — A description of a plan to recruit employees from
socially and economically disadvantaged backgrounds.
(h) Up to 30 points — A description of a plan to have at least fifty (50)
percent of employee positions filled, and hours worked by employees
residing in the City.
e. Upon timely receipt of a retail cannabis business permit application, the City
Manager shall conduct background checks in accordance with Section 4-35.18(1).
Following review and scoring of complete applications pursuant to objective review
criteria under Subsection d., the City Manager shall, as a ministerial duty, rank all
applicants according to their scores received from Subsection d, and schedule meetings
with an ad hoc committee formed by the City Council to review and interview up to the
top 12 ranked applicants. Following its review and interview of the selected applicants,
the ad hoc committee, in conjunction with City staff, shall score and rank the applicants
and recommend up to the top 8 applicants for the City Council's consideration of an award
of retail cannabis business permits. Upon receipt of the ad hoc committee's
recommendations, the City Manager shall schedule the consideration of an award of retail
cannabis business permits at a meeting of the City Council. The City Council shall
consider the applicants in order of their rank as determined by the ad hoc committee. The
selected applicants will be afforded the opportunity to make a 5 -minute public
presentation to the City Council describing each of their retail cannabis business permit
applications and addressing the objective review criteria and quantitative evaluation scale
in Subsection d. Following the presentations made by the applicants described in this
Subsection e., the City Council may issue retail cannabis business permits to applicants
up to the number of retail cannabis business permits authorized in Section 4-35.5, with
the applicants selected for a retail cannabis business permit being issued at the sole
discretion of the City Council. In so issuing retail cannabis business permits to applicants
up to the number of retail cannabis business permits authorized in Section 4-35.5 at its
sole discretion, the City Council shall have the absolute discretion to (1) award retail
18
cannabis business permits in accordance with the ranking order of applicants as
determined by the ad hoc committee or in accordance with its own determination following
the presentations made by the applicants to the City Council and (2) issue the retail
cannabis business permits contingent on the City enacting a legally effective means for
taxing cannabis retailers. However, the City Council shall not issue a retail cannabis
business permit to any applicant with an owner or manager that:
1. Provided false or misleading information on the applicant's retail cannabis
business permit application;
2. Has been convicted of (or pled no contest to) "an offense that is
substantially related to the qualifications, functions, or duties of the business or profession
for which the application is made" as that term is defined in 26057(b)(4) of the State
Business & Professions Code; or
3. Has been sanctioned by a licensing authority or a city, county, or state for
unlicensed commercial cannabis activities or has had a license suspended or revoked
under MAUCRSA in the three (3) years immediately preceding the date the application
was submitted.
f. Any decision of the City Manager or City Council under this Section 4-35.7 shall
be a final administrative decision not subject to administrative appeal under any
provisions of this Chapter 4-35 or any provisions of the City Municipal Code but, rather,
subject to judicial review and remedies.
g. In the event that the City Council is ordered to increase the number of retail
cannabis business permits issued for retailers by a court of competent jurisdiction as a
judicial remedy, the City Manager shall, as a ministerial duty, 'reinstitute the application
procedure under this Section 4-35.7, subject to the number of retail cannabis business
permits for retailers authorized and available (not allocated to an active, lawfully operating
retailer) for issuance. In the event that the number of active, operating retailers and
issued retail cannabis business permits falls below the number of retail cannabis business
permits for retailers authorized in Section 4-35.5, the City Council may, at its sole
discretion, require the City Manager, as a ministerial duty, to reinstitute the application
procedure under this Section 4-35.7, subject to the number of retail cannabis business
permits for retailers authorized and available (not allocated to an active, lawfully operating
retailer) for issuance. For the purpose of this Section, a retailer shall be considered
operating if (1) upon initial issuance of retail cannabis business permit (or approval of a
change in location pursuant to Section 4-35.13), the retailer commences lawful operations
within twenty-four (24) months (subject to the City Manager providing extensions in his or
her reasonable discretion if the permittee can demonstrate that the delay was due to
situations beyond its control and/or that significant progress towards establishing the use
has been made) or (2) following initial commencement of lawful operations, the retailer
does not cease or abandon operations for one -hundred twenty (120) consecutive or
19
cumulative days in any one (1) year period. A retailer's failure to commence lawful
operations within twenty-four (24) months or following initial commencement of lawful
operations, the retailer abandons operations for one -hundred twenty (120) consecutive
or cumulative days in any one (1) year period shall be considered a material violation of
this Chapter 4-35.
4-35.8: Limitations on the City's liability.
To the fullest extent permitted by law, the City shall not assume any liability whatsoever
with respect to having issued a retail cannabis business permit pursuant to this Chapter
4-35 or otherwise approving the operation of any cannabis retailer. As a condition to the
approval of any retail cannabis business permit, the applicant shall be required to meet
all of the following conditions before they can receive a retail cannabis business permit:
a. Execution of an agreement, in a form approved by the City Attorney, agreeing to
indemnify, defend (at applicant's sole cost and expense), and hold the City, and its
officers, officials, employees, representatives, and agents, harmless, from any and all
claims, losses, damages, injuries, liabilities, or losses which arise out of, or which are in
any way related to, the City's issuance of the retail cannabis business permit, the City's
decision to approve the operation of the cannabis retailer or activity, the process used by
the City in making its decision, or the alleged violation of any federal, State, or local laws
by the cannabis retailer or any of its officers, employees, or agents. This obligation shall
commence immediately upon the City's selection of an applicant for a retail cannabis
business permit.
b. Maintain insurance at coverage limits, and with conditions thereon determined
necessary and appropriate from time to time by the City Attorney.
c. Defend and indemnify the City for all costs and expenses, including but not limited
to attorneys' fees and court costs, that the City may be required to pay as a result of any
legal challenge related to the City's approval of the applicant's retail cannabis business
permit or related to the City's approval of a cannabis retail sales. In such instance, the
City shall have the right to choose the defense counsel to represent the City at the sole
expense of the permittees. A permittee's failure to pay the City its proportional share of
costs within forty-five (45) days following the City providing the permittee notice of the
City's exercise of its indemnity rights herein shall be considered a material violation of this
Chapter 4-35. This obligation shall commence immediately upon the City's selection of
an applicant for a retail cannabis business permit.
4-35.9: Retail Cannabis Business Permit Term.
a. Subject to this Section 4-35.9 and Section 4-35.10, the term of each retail cannabis
business permit shall be ten (10) years, unless the permit is revoked by the City for any
reason authorized by this Chapter 4-35. Each permit may be extended for two additional
20
years twice administratively by the City Manager. Permits that are extended twice
administratively may request an extension of up to ten (10) years by application to the
City Council. The process for requesting such extensions shall be approved by the City
Council by resolution prior to the expiration of the initial ten (10) year term.
b. Upon the one (1) year anniversary of the date of issuance for each retail cannabis
business permits and each year thereafter, the City Manager shall conduct a performance
review of the permittee to assess compliance with the requirements of this Chapter 4-35.
Within thirty (30) days of the conclusion of the annual performance review of the
permittee, the City Manager shall issue a letter of compliance or noncompliance outlining
all items to be corrected to ensure full compliance. In the event of any noncompliance,
the permittee shall have sixty (60) days to remedy such noncompliance. However, in the
event such noncompliance items cannot be remedied within sixty (60) days, such
noncompliance items shall not constitute a material violation of any law and/or any rule,
regulation, and/or standard adopted pursuant to this Chapter 4-35 subject to suspension
or revocation under Section 4-35.10 if the permittee commences correction of such
noncompliance items within sixty (60) days and thereafter diligently prosecutes correction
of such noncompliance items to completion. The City Manager shall have the final
discretion and authority to determine whether a permittee is working diligently to correct
all noncompliance items in a timely manner.
c. The permittee shall pay a non-refundable fee in an amount to be set by the City
Council via resolution to cover the costs of conducting the performance review, together
with any costs incurred by the City to administer the program created under this Chapter
4-35.
4-35.10: Suspension and Revocation of Retail Cannabis Business Permits.
a: The City Manager may suspend or revoke a retail cannabis business permit at any
time for any material violation of any law and/or any rule, regulation, and/or standard
adopted pursuant to this Chapter 4-35.
b. Suspension or revocation of a State license issued by the State or by any of its
departments or divisions, corresponding to the retail cannabis business permit shall
immediately result in the suspension of the associated retail cannabis business permit
until the State, or its applicable department or division, reinstates the State license or
otherwise lifts such suspension.
c. A permittee shall inform the City Manager or designee(s) of any suspension,
revocation, or termination of a State license corresponding to its retail cannabis business
permit within five (5) business days of the suspension, revocation, or termination of the
State license.
4-35.11: Appeals Regarding Retail Cannabis Business Permits.
21
a. Within ten (10) calendar days after the date of a decision of the City Manager to
revoke or suspend an issued retail cannabis business permit, deny a change in location
application, or deny a change in ownership application, an aggrieved Party may appeal
such action to the City Council by filing a written appeal with the City Clerk setting forth
the reasons why the decision was not proper. An appeal shall stay all proceedings in
furtherance of the appealed action.
b. At the time of filing, the appellant shall pay the designated, non-refundable appeal
fee established by resolution of the City Council.
c. Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing
before the City Council. The City Council shall hear the matter de novo and shall conduct
the hearing pursuant to the procedures set forth by the City.
d. The appeal shall be held within a reasonable time after filing the appeal, but in no
event later than ninety (90) days from the date of such filing. The City shall notify the
appellant of the time and location at least ten (10) days prior to the date of the hearing.
e. At the hearing, the appellant may present any information they deem relevant to
the decision appealed. The formal rules of evidence and procedure applicable in a court
of law shall not apply to the hearing.
f. At the conclusion of the hearing, the City Council may affirm, reverse, or modify
the decision appealed. The decision of the City Council shall be a final administrative
decision, subject to judicial review and remedies.
4-35.12: Change in Location; Updated Application Information.
a. A permittee may change the business location specified in a retail cannabis
business permit upon submission and approval of a change in location application
promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted
under Section 4-35.22. The permittee shall pay a non-refundable application fee
established by resolution of the City Council to cover all costs incurred by the City in the
review and processing of change in location applications. Upon submission of a change
in location application by a permittee, the City Manager shall, as a ministerial duty,
complete processing of such change in location application. If a change in location
application is incomplete or the proposed changed location contained therein does not
comply with location and zoning requirements in Section 4-35.6 and this Section, the City
Manager shall, as a ministerial duty, deny the change in location application. If a change
in location application is complete and the proposed changed location contained therein
complies with location and zoning requirements in Section 4-35.6 and this Section, the
City Manager shall, in his or her sole discretion, approve or deny the change in location
application. In the event the City Manager denies a change in location application, the
22
permittee may appeal the City Manager's denial to the City Council pursuant to Section
4-35.11.
b. In addition to the location and zoning requirements in Section 4-35.6, a permittee
may not change the business location specified in a retail cannabis business permit to
any property located one -thousand (1,000) feet or less from any cannabis retailer
permitted under this Chapter 4-35. The distance specified in this Subsection b. shall be
the horizontal distance measured in a straight line from the parcel line of the cannabis
retailer permitted under this Chapter 4-35 to the closest parcel line of the lot on which the
cannabis retailer is proposed to be located without regard to intervening structures.
c. An applicant or permittee shall notify the City Manager or designee(s) within fifteen
(15) calendar days of any material change in the information provided in the applicant or
permittee's retail cannabis business permit application or any change in status of
compliance with the provisions of this Chapter 4-35, including any change in the cannabis
retailer ownership or management.
4-35.13: Transfer of a Retail Cannabis Business Permit.
a. An owner of a retail cannabis business permit shall not transfer ownership or
control of such permit to another person unless and until the permittee and transferee(s)
obtain an amendment to the permit from the City Manager stating that the transferee(s)
is now an owner of the permittee. A permittee may change the ownership specified in a
retail cannabis business permit upon submission of a change in ownership application
promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted
under Section 4-35.22 within one -hundred eighty (180) days following the effective date
of this Chapter 4-35. The permittee shall pay a non-refundable application fee
established by resolution of the City Council to cover all costs incurred by the City in the
review and processing of change in ownership applications. Upon submission of a
change in ownership application by a permittee, the City Manager shall, as a ministerial
duty, complete processing of such change in ownership application. If a change in
ownership application is incomplete or the proposed transferee(s) contained therein do
not pass the background check(s) required under this Chapter 4-35, the City Manager
shall, as a ministerial duty, deny the change in ownership application. If the cumulative
(Le., including the change in ownership of the permittee from previous change in
ownership applications) change in ownership of the permittee is less than twenty-five and
one -tenth (25.1) percent from the ownership percentages contained in the permittee's
original retail cannabis business permit application and the proposed transferee(s)
contained therein pass the background check(s) required under this Chapter 4-35, the
City Manager shall, as a ministerial duty, approve the change in ownership application.
If the cumulative (Le., including the change in ownership of the permittee from previous
change in ownership applications) change in ownership of the permittee is twenty-five
and one -tenth (25.1) percent or more and less than fifty (50) percent, the City Manager
shall, in his or her sole discretion, approve or deny the change in ownership application.
23
In the event the City Manager denies a change in ownership application, the permittee
may appeal the City Manager's denial to the City Council pursuant to Section 4-35.11. If
the cumulative (Le., including the change in ownership of the permittee from previous
change in ownership applications) change in ownership of the permittee is fifty (50)
percent or more from the ownership percentages contained in the permittee's original
retail cannabis business permit application and the proposed transferee(s) contained
therein pass the background check(s) required under this Chapter 4-35, the City Manager
shall, as a ministerial duty, schedule a public hearing before the City Council within thirty
(30) days of completed processing, and following the public hearing, the City Council
shall, in its sole discretion, approve or deny the change in ownership application.
b. Notwithstanding Subsection (a), no retail cannabis business permit may be
transferred when the City Manager has notified the permittee that its retail cannabis
business permit has been or may be suspended or revoked.
c. Any attempt to transfer a retail cannabis business permit either directly or indirectly
in violation of this Section 4-35.13 is hereby declared void, and such an unpermitted
transfer shall be deemed a ground for revocation of the permit.
4-35.14: Records and recordkeeping.
a. Each cannabis retailer shall maintain accurate books and records in an electronic
format, which detail all revenues and expenses of the business, including, but not limited
to, all of its assets and liabilities. On no less than an annual basis (at the time of
performance review of a retail cannabis business permit issued pursuant to this Chapter
4-35), or at any time upon reasonable request of the City, each cannabis retailer shall file
a sworn statement detailing the number of sales by the cannabis retailer during the
previous 3 -month period (or shorter period based upon the timing of the request) detailing
sales for each month within such period in question. The statement shall also include
gross sales for each month and all applicable taxes paid or due to be paid. On an annual
basis, each cannabis retailer shall submit to the City a financial audit of the business's
operations conducted by an independent certified public accountant. The City may
perform its own annual independent financial audit and charge the retailer for such cost
incurred by the City. Each permittee shall be subject to a regulatory compliance review
and financial audit as determined by the City Manager.
b. Each cannabis retailer shall maintain a current register of the names and the
contact information (including the name, address, and telephone number) of anyone
owning or holding an interest in the cannabis retailer and, separately, the same contact
information of all officers, managers, employees, agents, and volunteers currently
employed or otherwise engaged by the cannabis retailer. The register required by this
Subsection shall be provided to the City Manager upon a reasonable request.
24
c. Each cannabis retailer shall maintain a record of all purchases and sales of
cannabis and cannabis products for a period of no less than seven (7) years.
d. All cannabis retailers shall maintain an inventory control and reporting system that
accurately documents the present location, amounts, and descriptions of all cannabis and
cannabis products.
e. Subject to any applicable restrictions under the Health Insurance Portability &
Accountability Act ("HIPAA") regulations, each cannabis retailer shall grant the City
Manager access to the business's books, records, accounts, together with any other data
or documents relevant to its operation, for the purpose of conducting an audit or
examination. Books, records, accounts, and any and all relevant data or documents shall
be produced no later than ten (10) business days after receipt of the City Manager's
request for such data, unless otherwise stipulated by the City Manager. The City Manager
may require the materials to be submitted in an electronic format that is compatible with
the City's software and hardware.
4-35.15: Security Measures.
a. A cannabis retailer shall implement sufficient security measures to deter and
prevent the unauthorized entrance into areas containing cannabis or cannabis products
and to deter and prevent the theft of cannabis or cannabis products at the cannabis
retailer. Except as may otherwise be determined by the City Manager, these security
measures shall include, but are not limited to the following:
1. Preventing individuals from remaining on the premises of the cannabis
retailer if they are not engaging in an activity directly related to the permitted operations
of the cannabis retailer.
2. Establishing limited access areas accessible only to authorized cannabis
retailer personnel.
3. All cannabis and cannabis products shall be stored in a secured and locked
room, safe, or vault. All cannabis and cannabis products shall be kept in a manner
designed to prevent diversion, theft, and loss.
4. Installing twenty -four-hour security surveillance cameras of at least HD -
quality to monitor all entrances and exits to and from the premises, all interior spaces
within the cannabis retailer, which are open and accessible to the public, all interior
spaces where cannabis, cash or currency is being stored for any period of time on a
regular basis, and all interior spaces where diversion of cannabis could reasonably occur.
The cannabis retailer shall be responsible for ensuring that the security surveillance
camera's footage is remotely accessible by the City Manager, and that it is compatible
with the City's software and hardware. Video recordings shall be maintained for a
25
minimum of ninety (90) days and shall be made available to the City Manager upon
request. Video shall be of sufficient quality for effective prosecution of any crime found
to have occurred on the site of the cannabis retailer.
5. Sensors shall be installed to detect entry and exit from all secure areas.
6. Panic buttons shall be installed in all cannabis retailers.
7. Having a professionally installed, maintained, and monitored alarm system.
8. Any bars installed on the windows or the doors of the cannabis retailer shall
be installed only on the interior of the building.
9. The premises shall be live monitored twenty-four (24) hours a day unless
the cannabis retailer has an alternative security program authorized by the City Manager.
Security personnel must be licensed by the State Bureau of Security & Investigative
Services personnel and shall be subject to the prior review and approval of the City
Manager, which shall not be unreasonably withheld.
10. Additional security measures may be added through the review of a retail
cannabis business permit application.
b. Each cannabis retailer shall identify a designated security representative or
liaison to the City, who shall be reasonably available to meet with the City Manager
regarding any security related measures and/or operational issues.
c. Each cannabis retailer (including as part of the retail cannabis business permit
application process) shall have a storage and transportation plan and currency
management plan, which describes in detail the procedures for safely and securely
storing, disposing and transporting all cannabis, cannabis products, and any currency.
d. The cannabis retailer shall cooperate with the City whenever the City Manager
makes a request, upon reasonable notice to the cannabis retailer, to inspect or audit the
effectiveness of any security plan or of any other requirement of this Chapter 4-35.
e. A cannabis retailer shall notify the City Manager within twenty-four (24) hours after
discovering any of the following:
1. Significant discrepancies identified during inventory. The level of
significance shall be determined by the regulations promulgated by the City Manager.
2. Diversion, theft, loss, or any criminal activity involving the cannabis retailer
or any agent or employee of the cannabis retailer.
26
3. The loss or unauthorized alteration of records related to cannabis and
cannabis products or registering customers or employees and/or agents of the cannabis
retailer.
4. Any other breach of security.
4-35.16: Restriction on Alcohol and Tobacco Sales.
No person shall cause or permit the sale, dispensing, or consumption of alcoholic
beverages or tobacco on or about the premises of the cannabis retailer.
4-35.17: Fees and charges.
a. No person may commence or continue any cannabis retail sales in the City without
timely paying in full all fees and charges required for the operation of a cannabis retail
sales. Fees and charges associated with the operation of such activity shall be
established by resolution of the City Council which may be amended from time to time.
b. All cannabis retailers authorized to operate under this Chapter 4-35 shall pay all
sales, use, business and other applicable taxes, and all license, registration, and other
fees required under federal, State, and local law. Each cannabis retailer shall cooperate
with City with respect to any reasonable request to audit the cannabis retailer' books and
records for the purpose of verifying compliance with this Section 4-35.20, including, but
not limited to, a verification of the amount of taxes required to be paid during any period.
4-35.18: General operating requirements.
a. Cannabisretailers may operate only during the hours specified in the retail
cannabis business permit issued by the City and must comply with State law at all times.
b. Cannabis shall not be consumed on the premises of any cannabis retailer.
c. No cannabis or cannabis products or graphics depicting cannabis or cannabis
products shall be visible from the exterior of any property issued a retail cannabis
business permit or on any of the vehicles owned or used as part of the cannabis retailer.
No outdoor storage of cannabis or cannabis products is permitted at any time.
d. Each cannabis retailer shall have in place a point -of -sale or management inventory
tracking system to track and report on all aspects of the cannabis retailer including, but
not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight
and by sale), and other information which may be deemed necessary by the City. The
cannabis retailer shall ensure that such information is compatible with the City's record -
keeping systems as well as the State Mandated Track and Trace requirements and
systems. In addition, the system must have the capability to produce historical
27
transactional data for review. Furthermore, any system selected must be approved and
authorized by the City Manager prior to being used by a permittee.
e. All cannabis and cannabis products sold and/or distributed shall be cultivated,
manufactured, and distributed by licensed facilities that maintain operations in full
conformance with the State and local regulations. The packaging and labeling of
cannabis and cannabis products shall comply at all times with State law.
f. There shall not be a physician located in any cannabis retailer at any time for the
purpose of evaluating patients for the issuance of a medicinal cannabis
recommendations.
g. Each cannabis retailer shall provide the City Manager with the name, telephone
number (both land line and mobile, if available) of an on -site employee or owner to whom
emergency notice can be provided at any hour of the day.
h. Signage and Notices.
1. In addition to the requirements otherwise set forth in this Section 4-35.18,
business identification signage for a cannabis retailer shall conform to the requirements
of the City Municipal Code, including, but not limited to, seeking the issuance of a City
sign permit.
2. No signs placed on the premises of a cannabis retailer shall obstruct any
entrance or exit to the building or any window.
3. Each entrance to a cannabis retailer shall be visibly posted with a clear and
legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the
premises, or in the areas adjacent to the premises, is prohibited.
4. The entrance to the cannabis retailer shall be clearly and legibly posted with
a notice that no person under the age of twenty-one (21) years of age is permitted to enter
upon the premises of the cannabis retailer, other than as lawful customers permitted
under State law.
Other than as lawful customers permitted under State law in the case of retailers,
individuals under the age of twenty-one (21) years shall not be allowed on the premises
of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer.
It shall be unlawful and a violation of this Chapter 4-35 for any person to employ any
person at a cannabis retailer who is not at least twenty-one (21) years of age.
j. Odor control devices and techniques shall be incorporated in all cannabis retailers
to ensure that odors from cannabis are not detectable off -site. Cannabis retailers shall
provide a sufficient odor absorbing ventilation and exhaust system so that odor generated
28
inside the cannabis retailer that is distinctive to its operation is not detected outside of the
facility, anywhere on adjacent property or public rights -of -way, on or about the exterior or
interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other
areas available for use by common tenants or the visiting public, or within any other unit
located inside the same building as the cannabis retailer.
k. The original copy of the retail cannabis business permit issued by the City pursuant
to this Chapter 4-35 and the City issued business license shall be posted inside the
cannabis retailer in a location readily visible to the public.
Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code,
which authorizes City authorities to access State and local summary criminal history
information for employment, licensing, or certification purposes; and authorizes access to
federal level criminal history information by transmitting fingerprint images and related
information to the Department of Justice to be transmitted to the Federal Bureau of
Investigation, every person listed as an owner, manager, supervisor, employee, or
volunteer of the cannabis retailer must submit fingerprints and other information deemed
necessary by the City Manager for a background check. Pursuant to Sections
11105(b)(11) and 13300(b)(11) of the State Penal Code, which requires that there be a
requirement or exclusion from employment, licensing, or certification based on specific
criminal conduct on the part of the subject of the record, no person shall be issued a retail
cannabis business permit unless they have first cleared the background check, as
determined by the City Manager, as required by this Chapter 4-35. A non-refundable fee
for the cost of the background investigation, which shall be the actual cost to the City to
conduct the background investigation as it deems necessary and appropriate, shall be
paid at the time the application for a retail cannabis business permit is submitted.
m. The cannabis retailer shall prohibit loitering by persons outside the facility both on
the premises and within fifty (50) feet of the premises.
n. Within sixty (60) days of licensure, for a permittee with twenty (20) or more
employees, the permittee shall attest to the City that the permittee has entered into a
Labor Peace Agreement and will abide by the terms of the Agreement. The permittee
shall submit a copy of the page of the Labor Peace Agreement that contains the
signatures of the labor representative and the applicant. For permittees with less than
twenty (20) employees who have not yet entered into a Labor Peace Agreement, the
permittee shall provide a notarized statement indicating that the applicant will enter into
and abide by the terms of a Labor Peace Agreement within thirty (30) days after
employing twenty (20) employees. If an attestation that the permittee is party to a Labor
Peace Agreement, and a copy of the page of the Labor Peace Agreement that contains
the signatures of the labor representative was submitted to the City by the permittee as
part of the application process, that will meet this obligation.
29
o. Cannabis retailers shall implement a workforce plan that includes at least the
following provisions:
1. Commitment for thirty (30) percent of employees to be local hires; this local
hiring requirement is satisfied when a cannabis retailer shows that it has either hired or
made a good faith effort to hire bona fide residents of the City or persons that may
establish residency after initial employment with the permittee;
2. Commitment to offer apprenticeships and/or compensation for continuing
education in the field of cannabis retail sales; and
3. Paying a living wage to employees. "Living wage" means compensation
equivalent to $20 per hour inclusive of benefits but excluding tips.
p. It shall be unlawful for a cannabis retailer to discriminate in any manner or take
adverse action against any employee in retaliation for exercising rights protected under
this Chapter 4-35 or City or State law. These rights include, but are not limited to (1) the
right to file a complaint or inform any person about any party's alleged noncompliance
with this Chapter 4-35 or City or State law and (2) the right to inform any person of his or
her potential rights under this this Chapter 4-35 or City or State law and to assist him or
her in asserting such rights. Protections under this this Chapter 4-35 or City or State law
shall apply to any employee who mistakenly, but in good faith, alleges noncompliance
with this this Chapter 4-35 or City or State law. Taking adverse action against an
employee within ninety (90) days of the employee's exercise of rights protected under this
Chapter 4-35 or City or State law shall raise a rebuttable presumption of having done so
in retaliation for the exercise of such rights.
4-35.19: Additional Operational Requirements in General.
The City Manager may, pursuant to Section 4-35.22, develop additional cannabis retailer
operational requirements or regulations for the retail sale of cannabis and cannabis
products in the City as are determined to be necessary to protect the public health, safety,
and welfare.
4-35.20: Additional Operating Requirements.
a. Retailers and the operation thereof shall comply with State law at all times.
b. Prior to dispensing medicinal cannabis or medicinal cannabis products to a
qualified patient, a retailer shall verify the age and all necessary documentation of each
customer to ensure the customer is not under the age of eighteen (18) years and obtain
verification from the recommending physician that the person requesting medicinal
cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy
of the physician recommendation or identification card as described in Sections 11362.71
30
through 11362.77 of State Health & Safety Code, as may be amended from time to time,
on site for period of not less than seven (7) years.
c. Prior to dispensing cannabis or cannabis products to an adult -use customer, a
retailer shall verify the age and all necessary documentation of each customer to ensure
the customer is not under the age of twenty-one (21) years.
d. All restroom facilities shall remain locked and under the control of managers onsite.
e. A retailer shall notify customers (verbally or by written agreement) and by posting
of a notice or notices conspicuously in at least 15 -point type within the permitted premises
that state as follows:
1. "The sale or diversion of cannabis or cannabis products without a license
issued by the City of Lynwood is a violation of State law and the Lynwood Municipal
Code."
2. "Secondary sale, barter, or distribution of cannabis or cannabis products
purchased from a permittee is a crime and can lead to arrest."
3. "Customers must not loiter in or near these premises and may not consume
cannabis or cannabis products in the vicinity of this business or in any place not lawfully
permitted. These premises and vicinity are monitored to ensure compliance."
4. "WARNING: The use of cannabis or cannabis products may impair a
person's ability to drive a motor vehicle or operate heavy machinery."
5. "CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis -
derived products will expose you and those in your immediate vicinity to cannabis
smoke. Cannabis smoke is known by the State of California to cause cancer and
reproductive harm."
4-35.21: Additional Operating Requirements For Delivery.
a. Delivery shall comply with State law at all times.
b. Security plans developed pursuant to this Chapter 4-35 shall include provisions
relating to vehicle security and the protection of employees and product during loading
and in transit.
c. A retailer shall facilitate the delivery of cannabis or cannabis products with a
technology platform owned by or licensed to the delivery -only retailer that uses point -of -
sale technology to track and database technology to record and store the following
31
information for each transaction involving the exchange of cannabis or cannabis products
between the retailer and customer:
1. The identity of the individual dispensing cannabis or cannabis products on
behalf of the permittee;
2. The identity of the customer receiving cannabis or cannabis products from
the permittee;
3. The type and quantity of cannabis or cannabis products dispensed and
received;
4. The gross receipts charged by the permittee and received by the individual
dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or
cannabis products dispensed and received; and
5. The location or address where the sale or retail sale took place or closed.
d. A permittee shall maintain a database and provide a list of the individuals and
vehicles authorized to conduct delivery, and a copy of the valid State driver's license
issued to the driver of any such vehicle on behalf of the retailer to the City Manager.
e. Individuals making deliveries of cannabis or cannabis products on behalf of the
retailer shall maintain a physical copy of the delivery request (and invoice) and shall make
it available upon the request of agents or employees of the City requesting
documentation.
f. During delivery, a copy of the permittee's retail cannabis business permit and State
license shall be in the vehicle at all times, and the driver shall make it available upon the
request of agents or employees of the City requesting documentation.
g. A retailer shall only permit or allow delivery of cannabis or cannabis products in a
vehicle that is (1) insured at or above the legal requirement in the State; (2) capable of
securing (locking) the cannabis or cannabis products during transportation; (3) capable
of being temperature controlled if perishable cannabis or cannabis products is being
transported; and (4) does not display advertising or symbols visible from the exterior of
the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a
retailer.
h. A retailer shall facilitate deliveries with a technology platform owned by or licensed
to the retailer that uses global positioning system technology to track, and database
technology to record and store the following information:
32
1. The time that the individual conducting delivery on behalf of the retailer
departed the licensed premises.
2. The time that the individual conducting delivery on behalf of the retailer
completed delivery to the customer.
3. The time that the individual conducting delivery on behalf of the retailer
returned to the licensed premises.
4. The route the individual conducting delivery on behalf of the retailer traveled
between departing and returning to the licensed premises to conduct delivery.
5. For each individual delivery transaction, the identity of the individual
conducting deliveries on behalf of the retailer.
6. For each individual delivery transaction, the vehicle used to conduct delivery
on behalf of the retailer.
7. For each individual delivery transaction, the identity of the customer
receiving cannabis or cannabis products from the retailer.
8. For each individual delivery transaction, the type and quantity of cannabis
or cannabis products dispensed and received.
9. For each individual delivery transaction, the gross receipts charged by the
retailer and received by the individual conducting deliveries on behalf of the retailer for
the cannabis or cannabis products dispensed and received.
The individual making deliveries on behalf of the retailer shall personally verify for
each individual delivery transaction the identity of the customer receiving cannabis or
cannabis products from the retailer and (1) for medicinal cannabis or medicinal cannabis
products to a qualified patient, the age and all necessary documentation of each customer
to ensure the customer is not under the age of eighteen (18) years and obtain verification
from the recommending physician that the person requesting medicinal cannabis or
medicinal cannabis products is a qualified patient, and shall maintain a copy of the
physician recommendation or identification card as described in Sections 11362.71
through 11362.77 of State Health & Safety Code, as may be amended from time to time,
on site for period of not less than seven (7) years or (2) for cannabis or cannabis products
to an adult -use customer, age and all necessary documentation of each customer to
ensure the customer is not under the age of twenty-one (21) years.
j. Within one -hundred -eighty (180) days following the effective date of this Chapter,
commercial cannabis businesses conducting delivery pursuant to Chapter4-34 of the City
Municipal Code shall comply with the requirements of this Section 4-35.21.
33
4-35.22: Promulgation of Regulations, Standards, and Other Legal Duties.
a. Consistently with stated requirements of this Chapter 4-35 (and in particular not to
repeal or constructively repeal this Chapter 4-35), in addition to any regulations adopted
under State law, the City Manager is authorized to establish any additional rules,
regulations, and standards governing the issuance, denial, or renewal of retail cannabis
business permits, the ongoing operation of cannabis retailers, and the City's oversight, or
concerning any other subject determined to be necessary to carry out the purposes of
this Chapter 4-35.
b. Such regulations shall be published on the City's website.
c. Regulations promulgated by the City Manager shall become effective upon date of
publication. Cannabis retailers shall be required to comply with all State and local laws
and regulations, including but not limited to any rules, regulations or standards adopted
by the City Manager.
4-35.23: Community Relations.
a. Each cannabis retailer shall provide the name, telephone number, and email
address of a community relations contact to whom notice of problems associated with the
cannabis retailer can be provided. Each cannabis retailer shall also provide the above
information to all businesses and residences, in the City, located within one hundred and
fifty (150) feet of the cannabis retailer. Such community relations contact shall respond
to any complaints within forty-eight (48) hours of receipt of such complaints.
b. During the first year of operation pursuant to this Chapter 4-35, the owner(s),
manager(s), and community relations representative from each cannabis retailer holding
a retail cannabis business permit issued pursuant to this Chapter 4-35 shall attend a
quarterly meeting with the City Manager and other interested parties as deemed
appropriate by the City Manager, to discuss costs, benefits, and other community issues
arising as a result of implementation of this Chapter 4-35. After the first year of operation,
the owner(s), manager(s), and community relations representative from each such
cannabis retailer shall meet with the City Manager when and as requested by the City
Manager.
c. Cannabis retailers to which a retail cannabis business permit is issued pursuant to
this Chapter 4-35 shall develop and make available to youth organizations and
educational institutions a public education plan that outlines the risks of youth addiction
to cannabis, and that identifies resources available to youth related to drugs and drug
addiction.
4-35.24: Fees Deemed Debt To City.
34
The amount of any fee, cost, or charge imposed pursuant to this Chapter 4-35 shall be
deemed a debt to the City that is recoverable via authorized processes as set forth in the
City Municipal Code or available through any court of competent jurisdiction.
4-35.25: Permittee, owner, and property owner responsible for violations.
a. Each permittee and each owner and each manager of the permittee (and each
individual owner and each individual manager of an owner or manager of the permittee)
shall be responsible for all violations of the laws of the State or of the regulations and/or
the ordinances of the City occurring within the City or in or about the premises of the
cannabis retailer, if committed by the permittee or any employee or agent of the permittee
and whether or not said violations occur within the permittee, owner, or manager's
presence.
b. No person may engage in any cannabis retail sales within the City unless the
person is in compliance with the requirements of this Chapter 4-35.
c. It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at
any location, structure, or vehicle in the City by a person (1) that does not have a valid
retail cannabis business permit issued by the City; (2) that does not have a valid State
license; (3) that does not have any other applicable approvals, including, but not limited
to, a building permit and City business license; or (4) that is not currently in compliance
with all applicable State and local laws and regulations pertaining to the cannabis retail
sales. Property owners shall have strict liability for any cannabis retail sales at any
location, structure, or vehicle in the City by a person (1) that does not have a valid retail
cannabis business permit issued by the City or (2) that does not have a valid State license.
4-35.26: Inspection and Enforcement.
a. The City Manager or designee(s) charged with enforcing the provisions of the City
Municipal Code, or any provision thereof, may enter the location of a cannabis retailer at
any time, without notice, and inspect the location of any cannabis retailer as well as any
recordings and records required to be maintained pursuant to this Chapter 4-35 or under
applicable provisions of State law.
b. It is unlawful for any person having responsibility over the operation of a cannabis
retailer, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct
an inspection, review or copy records, recordings, or other documents required to be
maintained by a cannabis retailer under this Chapter 4-35 or under State or local law. It
is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records,
recordings or other documents required to be maintained by a cannabis retailer under this
Chapter 4-35 or under State or local law.
35
c. The City Manager or designee(s) charged with enforcing the provisions of this
Chapter 4-35 may enter the location of a cannabis retailer at any time during business
hours and without notice to obtain samples of the cannabis to test for public safety
purposes. Any samples obtained by the City shall be logged, recorded, and maintained
in accordance with the City law enforcement standards for evidence.
4-35.27: Concurrent Regulation with the State.
It is the stated intent of this Chapter 4-35 to regulate cannabis retail sales in the City
concurrently with the State.
4-35.28: Violations Declared a Public Nuisance.
Each and every material violation of the provisions of this Chapter 4-35 is hereby deemed
unlawful and a public nuisance subject to all remedies and enforcement measures
authorized by the City Municipal Code.
4-35.29: Each Violation a Separate Offense.
Each and every violation of this Chapter 4-35 shall constitute a separate violation and
shall be subject to all remedies and enforcement measures authorized by the City
Municipal Code. Additionally, as a nuisance per se, any material violation ofihis Chapter
4-35 shall be subject to injunctive relief, any retail cannabis business permit issued
pursuant to this Chapter 4-35 being deemed null and void, disgorgement, and payment
to the City of any monies unlawfully obtained, costs of abatement, costs of investigation,
attorney's fees, and any other relief or remedy available at law or in equity. The City may
also pursue any and all remedies and actions available and applicable under State and
local laws for any violations committed by the cannabis retailer or persons related to, or
associated with, the cannabis retail -sales. Additionally, when there is determined to be
an imminent threat to public health, safety or welfare, the City Manager or designee(s),
may take immediate action to temporarily suspend a retail cannabis business permit
issued by the City, pending a public hearing before the City Council.
4-35.30: Criminal Penalties.
Each and every material violation of the provisions of this Chapter 4-35 may be
prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed five
thousand dollars ($5,000.00) or imprisonment in the County jail for a period of not more
than six (6) months, or by both such fine and imprisonment. Each day a material violation
is committed or permitted to continue shall constitute a separate offense.
4-35.31: Remedies Cumulative and Not Exclusive.
36
The remedies provided herein are not to be construed as exclusive remedies. The City
is authorized to pursue any proceedings or remedies provided by law.
SECTION 5. Section 4-34.1 (Purpose) of Chapter 4 (Licensing and Business
Regulations) of the City Municipal Code is hereby amended to read as follows:
a. The purpose of this Section 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 Section 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.
SECTION 6. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business
Regulations) of the City Municipal Code is hereby amended to read as follows:
n. 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 MAUCRSA, any development agreement
approved by City Council, and any rules adopted pursuant thereto, ce p
storefront dispensary, as specified in section 25 200 1, shall be permitted within
the -city.
SECTION 7. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business
Regulations) of the City Municipal Code is hereby amended to read as follows:
t. Commercial cannabis business means any person engaged in commercial
cannabis activity but excludes cannabis retailers permitted and operating under
Chapter 4-35 of the City Municipal Code.
SECTION 8. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business
Regulations) of the City Municipal Code is hereby amended to read as follows:
37
y
Permit means authorization to conduct commercial cannabis activity operate a
commercial cannabis business pursuant to this Chapter, state law, and upon the
issuance of an occupancy permit and business license by the City.
SECTION 9. Section 4-34.4 (Permitted Use) of Chapter 4 (Licensing and Business
Regulations) of the City Municipal Code is hereby amended to read as follows:
b. All persons who are engaged in operate or who are attempting to engage in
commercial cannabis activity operate a commercial cannabis business in any form
shall do so only in strict compliance with the terms, conditions, limitations and
restrictions of the MAUCRSA, the provisions of this section, and all other
applicable state and local laws and regulations.
SECTION 10. Section 4-34.6 (Permitted Zones — Distance and Other Conditions
For Approval) of Chapter 4 (Licensing and Business Regulations) of the City Municipal
Code is hereby amended to read as follows
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 section 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 section 3-13.
SECTION 11. Section 4-34.8 (Changing, Altering, Or Modifying Location) of
Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby
amended to read as follows
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 commercial
cannabis businesses.
38
SECTION 12. Sensitive Uses. The City Council finds that the definitions of the
sensitive uses (day care centers, public parks, schools, and youth centers) under the
amendment to Section 4-35.3 of the City Municipal Code in this Ordinance are subject to
some degree of interpretation. However, the City Council also finds that certainty
regarding the identification of sensitive uses (day care centers, public parks, schools, and
youth centers) under the amendments to Sections 4-35.3 and 4-35.6 of the City Municipal
Code in this Ordinance is required to carry out the purpose and intent of this Ordinance
so the that People, the City, and prospective applicants can clearly identify where and
where not lawful cannabisretailers under this Ordinance may be located. Accordingly
and pursuant to the authority delegated by the State to the City Council under Section
26054(b) of the State Business & Professions Code and overriding the location and
design requirements contained in Section 26054(b) of the State Business & Professions
Code, the following sensitive uses (day care centers, public parks, schools, and youth
centers) and only the following sensitive uses (day care centers, public parks, schools,
and youth centers) located on the following County Assessor's Identification Numbers
and only the following County Assessor's Identification Numbers shall be considered
under the amendment to Section 4-35.6.a of the City Municipal Code in this Ordinance
for the purpose of the initial establishment of cannabis retailers pursuant to the initial
iteration of the cannabis retailer application procedure under the amendment to Section
4-35.7 of the City Municipal Code in this Ordinance (to include any review and scoring of
any applications pursuant to the objective review criteria and quantitative evaluation scale
under the amendment to Section 4-35.7.d of the City Municipal Code in this Ordinance).
Only following the initial iteration of the cannabis retailer application procedure and the
initial issuance of retail cannabis business permits under the amendment to Section 4-
35.7 of the City Municipal Code in this Ordinance, may the City Manager (his or her
designee(s)) reinterpret the following list of sensitive uses (day care centers, public parks,
schools, and youth centers) and County Assessor's Identification Numbers for the
purpose of subsequent iterations of the cannabis retailer application procedure under the
amendment to Section 4-35.7 of the City Municipal Code in this Ordinance and change
in location applications under the amendment to Section 4-35.12 of the City Municipal
Code in this Ordinance.
Name
Sensitive Use
Type
County Assessor's
Identification Number(s)
Abbott Preschool
Day Care
Center
6186-042-900
Adolfo Medina Park
Public Park
6169-014-905, 6169 -016 -
901, 6169-016-903, 6169-
016-907
B L Harvey School
Day Care
Center
6191-011-012
Camphor Tree Park
Public Park
6174-009-901
39
Name
Sensitive Use
Type
County Assessor's
Identification Number(s)
Carnation Park
Public Park
6170-022-901
6191-018-900,6191-018-
Cesar Chavez Middle School
School
901, 6191-018-902, 6191-
018-903,6191-018-904,
6191-018-907
Children's Institute / Imperial Courts
Day Care
Center
6067-014-902
David's Heart Enrichment Center
Day Care
Center
6177-007-001
Dr. Ralph Bunche Middle School
School
6150-036-900
Ella Fitzgerald CDC / Drew Child
Day Care
6150-036-021
Development Corporation
Center
Faith and Hope Park
Public Park
6150-020-900
Fernwood Avenue Park Project
Public Park
6169-002-908
Foster Elementary School
School
6184-009-900
Foster State Preschool
Day Care
Center
6184-009-900
Fred W. Hosier Middle School
School
6173-022-900
6177 -001-919,6177-001-
902,6177-001-903,6177-
001-904,6177-001-906,
6177-001-907,6177-001-
901,6177-001-918,6177-
Helen Keller Elementary
School
001-912, 6177-001-917,
6177 -001-915,6177-001-
914,6177-001-911,6177-
001-905,6177-001-916,
6177-001-908,6177-001-
909, 6177-001-910, 6177-
001-913,6177-001-920
6177 -001-919,6177-001-
902,6177-001-903,6177-
001-904,6177-001-906,
6177-001-907,6177-001-
Helen Keller Preschool
Day Care
Center
901, 6177-001-918, 6177-
001-912, 6177-001-917,
6177 -001-915,6177-001-
914,6177-001-911,6177-
001-905,6177-001-916,
6177-001-908,6177-001-
40
Name
Sensitive Use
Type
County Assessor's
Identification Number(s)
909,6177-001-910,6177-
001-913,6177-001-920
Henning Youth Center
Youth Center
6173 007-901, 6173-007-
902
6234 -011-275,6234-011-
007,6234-011-804,6234-
014-274,6234-013-902,
6234 -014-800,6234-014-
901,6234-014-803,6234-
014-277,6234-014-275,
6234-016-900, 6234-016-
803, 6234-016-802, 6234-
Hollydale Regional Park
Public Park
016-801, 6234-016-800,
6234 -019-270,6234-019-
006,6234-019-902,6234-
019-801,6234-019-800,
6234 -019-802,6234-019-
903,6234-019-803,6236-
009-900,6236-009-810,
6236-009-807,6236-009-
808
Imperial Courts Recreation Center
Youth Center
6067-013-901
Janie P. Abbott Elementary School
School
6186-042-900
Jordan High School
School
6046-021-918, 6046-020-
901
Kinder Prep Preschool Center
Day Care
Center
6171-016-013
King State Preschool
Day Care
Center
6150-025-901
Lincoln Elementary School
School
6170-022-900, 6170-022-
902
Lincoln Preschool
Day Care
Center
6170-022-900, 6170-022-
902
Lindbergh Children's Center
Day Care
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
Center
013-900,6168-012-905
6168-012-927, 6168 -012 -
Lindbergh Elementary School
School
926, 6168-012-902, 6168-
013-900, 6168-012-905
Lindbergh Preschool
Day Care
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
Center
013-900,6168-012-905
41
Name
Sensitive Use
Type
County Assessor's
Identification Number(s)
Little Pillar Park
Public Park
6170-014-901, 6170-014-
907
Los Amigos East Park
Public Park
6168-012-906
Los Amigos West Park
Public Park
6168-013-901, 6168-013
902, 6168-012-905
Los Angeles Speech & Language
Therapy Center, Inc.
Day Care
Center
6173-015-041
6189-019-908, 6189 -019 -
Lucy Avalos Community Center
Youth Center
923, 6189-019-916, 6189-
019-917,6189-019-926
6193-002-901,6193-002-
904,6193-002-902,6193-
Lugo Elementary School
School
002-909, 6193-002-906,
6193-002-907,6193-002-
903, 6193-002-905, 6193-
002-908
6193-002-901,6193-002-
904,6193-002-902,6193-
Lugo Preschool
Day Care
Center
002-909, 6193-002-906,
6193-002-907,6193-002-
903, 6193-002-905, 6193-
002-908
Lynwood Community Center
Youth Center
6173-022-901
Lynwood High School
School
6174-020-900, 6174-019-
900
Lynwood Natatorium
Youth Center
6173-021-900
Madison Elementary School
School
6206-027-901
6189-032-900,6189-023-
900,6189-023-901,6189-
023-902, 6189-023-903,
6189-023-904,6189-023-
914, 6189-023-905, 6189-
023-906, 6189-023-915,
Marco Antonio Firebaugh High
6189-023-907, 6189-023-
School
School
908, 6189-023-909, 6189-
023-916, 6189-023-910,
6189-023-911, 6189-023-
917, 6189-023-912, 6189-
023-913, 6189-032-903,
6189-032-904, 6189-032-
901, 6189-032-902, 6189-
42
Name
Sensitive Use
Type
County Assessor's
Identification Number(s)
032-905,6189-032-906,
6189-032-909,6189-032-
907,6189-032-908
Mark Twain Elementary School
School
6174-025-900
Mark Twain Preschool
Day Care
Center
6174-025-900
Martin Luther King Elementary
School
School
6150-025-901
Mona Park
Public Park
6150-025-900, 6150-025-
902
Montara Avenue Elementary School
School
6207-004-922, 6207-004-
923
Park Place Early Education
Day Care
Center
6186-012-041
Pathway Independent Study
School
6173-022-900
6237-026-904,6237-033-
914,6237-033-904,6237-
033-915, 6237-033-902,
6237-033-905, 6237-033-
911, 6237-033-913, 6237 -
Ralph C. Dillis Park
Public Park
033-918, 6237-033-912,
6237-033-906,6237-033-
907, 6237-033-916, 6237-
033-917, 6237-033-909,
6237-033-910, 6237-033-
901
Ricardo Lara Linear Park
Public Park
6174-001-913
Ritter Elementary School
School
6068-020-901
Roosevelt Elementary School
School
6191-023-900, 6191-024-
900
Roosevelt Preschool
Day Care
Center
6191-023-900, 6191-024-
900
6174-019-905,6174-019-
903,6174-019-907,6174-
Rosa Parks Elementary
School
019-904, 6174-019-906,
6174-019-908,6174-019-
909,6174-019-901,6174-
019-902
Rosa Parks Preschool
Day Care
6174-019-905, 6174-019-
903, 6174-019-907, 6174-
Center
019-904,6174-019-906,
43
Name
Sensitive Use
Type
County Assessor's
Identification Number(s)
6174-019-908,6174-019-
909,6174-019-901,6174-
019-902
Rose Park
Public Park
6169-009-900
SAGA Child Development Learning
Day Care
6173-030-012
Academy
Center
San Miguel Catholic School
School
6068-008-001, 6068-008-
031
Simon Rodia Continuation School
School
6207-001-900, 6207-001-
901
Soleil Academy Charter School
School
6174-020-900, 6174-019
900
South East High School & Middle
6207-001-900, 6207-001-
School
School
901
6191-015-027, 6191 -015 -
St. Emydius School
School
021, 6191-015-024, 6191-
015-023
6186-014-018, 6186 -014 -
St. Philip Neri School
School
004, 6186-014-016, 6186-
024-031
Sunshine Day Care Center
Day Care
Center
6168-016-014
Thurgood Marshall Elementary
School
6191-018-907, 6191-018-
School
905,6191-018-906
Thurgood Marshall Preschool
Day Care
Center
6191-018-907, 6191-018-
905,6191-018-906
Tiny Treasures Preschool
Day Care
Center
6168-008-003
Veterans Memorial Garden
Public Park
6187-002-900
Victoria Elementary School
School
6209-009-900, 6209-009
902,6209-009-901
Vista High School
School
6194-031-906
Volunteers of America, Abbott Head
Day Care
6186-042-900
Start
Center
Volunteers of America, Bright Stars
Day Care
6173-003-005, 6173 -003 -
Head Start
Center
018
Volunteers of America, Greater
Day Care
6173-017-025
Emmanuel Head Start
Center
Volunteers of America, Happy Days
Head Start
Day Care
Center
6186-008-030
44
Name
Sensitive Use
Type
County Assessor's
Identification Number(s)
Washington Elementary School
School
6190-012-901, 6193-017-
901
Washington Preschool
Day Care
Center
6190-012-901, 6193-017-
901
Weigand Avenue Elementary School
School
6066-009-900
Weigand Elementary School Room 6
Day Care
Center
6066-009-900
Will Rogers Children's Center
Day Care
Center
6194-016-925
Will Rogers Elementary School
School
6194-016-925
Will Rogers Preschool
Day Care
Center
6194-016-925
Wilson Elementary School
School
6175-008-900
Wilson Preschool
Day Care
Center
6175-008-900
Wilson School Park
Public Park
6175-006-900
6189-019-927, 6189-019-
929, 6189-019-928, 6189-
019-924,6189-019-909,
6189-019-925,6189-019-
921,6189-019-911,6189-
019-915, 6189-019-903,
6189-019-906,6189-019-
907, 6189-019-904, 6189-
019-913, 6189-019-912,
6189-019-922, 6189 -019 -
Yvonne Burke -John D. Ham Park
Public Park
918, 6189-019-910, 6189-
019-919,6189-019-905,
6189-019-920,6189-019-
914,6186-036-912,6186-
036-913, 6186-036-910,
6186-036-909,6186-036-
905,6186-036-906,6186-
036-900, 6186-036-907,
6186-036-908,6186-036-
902, 6186-036-901, 6186-
036-903
SECTION 13. Categorically Exempt from CEQA. The City Council find that the
actions contemplated by this Ordinance, including the issuance of retail cannabis
business permits, are categorically exempt from the California Environmental Quality Act
("CEQA") under Section 15060(c)(2) and Section 15060(c)(3) of Title 14 of the State Code
45
of Regulations. Further, the City Council finds that pursuant to Section 4-35.06 of Chapter
4-35 of the City Municipal Code as codified by this Ordinance, cannabis retailers are a
use permitted in certain zoning districts within the City. As permitted in those zoning
districts, cannabis retailers are similar to already existing permitted general uses in those
zoning districts with the only difference being the type of product being delivered or sold.
SECTION 14. Severabilitv. If any provision, section, paragraph, sentence, phrase,
or word of this Ordinance is rendered or declared invalid, illegal, or unconstitutional by
any final action in a court of competent jurisdiction or by reason or any preemptive
legislation, such unconstitutionality illegality or invalidity shall only affect such provision,
section, paragraph, sentence, phrase, or word and shall not affect or impair any remaining
provisions, sections, paragraphs, sentences, phrases, or words, or the application of this
Ordinance to any other person or circumstance, and to that end, the provisions hereof
are severable. It is hereby declared to be the intention of the City Council that that this
Ordinance would have been adopted had such unconstitutional illegal or invalid provision,
section, paragraph, sentence, phrase, or word not been included herein.
SECTION 15. Liberal Construction. This Ordinance is an exercise of the police
power of the City Council to provide for safe and regulated access to cannabis and
cannabis products, and shall be liberally construed to effectuate that purpose.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
of the City of Lynwood, California this 2nd day of August, 2022.
ATTEST:
Maria Quinonez,
City Clerk
APPROVED AS TO FORM:
Noel Tapia,
City Attorney
46
STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby
certify that the foregoing Ordinance was passed and adopted by the City Council of the
City of Lynwood at a meeting held on the 2nd day of August, 2022.
AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM
SOLACHE AND MAYOR CASANOVA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
aria Quinonez,
City Clerk
STATE OF CALIFORNIA
)§
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the
Clerk of the City Council of said City, do hereby certify that the above foregoing is a full,
true and correct copy of Ordinance No. 1751 on file in my office and that said Ordinance
was adopted on the date and by the vote therein stated. Dated this 2"d day of August,
2022.
aria Quinonez,
City Clerk
47