14-A — Bellflower City Council, February 9, 2026

14-A
TO: Honorable Mayor and Members of the City Council

ATTENTION: Ryan Smoot, City Manager

FROM: Wangsu Lee, Assistant to the City Manager

SUBJECT: Consideration and possible action to adopt Resolution No. 26-05 – A Resolution implementing Title 14 of the Bellflower Municipal Code by establishing policies and procedures for obtaining, modifying, and maintaining Cannabis Business Permits (“CBP”); and superseding Resolution No. 23-18.

DATE: February 9, 2026

EXECUTIVE SUMMARY

In October 2016, the City Council adopted Resolution 16-72, which established the City’s first minimum standards and qualification requirements for cannabis-related businesses. Since then, the City Council adopted and implemented a series of revisions, including minor adjustments, consolidations, and statements of prior cannabis regulations, which culminated in the adoption of Resolution 23-18. Although these actions improved clarity and organization, the core minimum standards and qualification requirements have substantively remained unchanged. Since the adoption of Resolution 16-72, the cannabis industry faced significant regulatory, economic, political, social and operational changes. In response to the evolving cannabis industry conditions and emerging challenges, the City is evaluating updates to its cannabis policies and procedures related to the issuance, modification and ongoing maintenance of cannabis business permits (“CBP”) to update regulatory oversight, ensure ongoing compliance, and support the continued operations of high-quality cannabis businesses in the City. If Resolution No. 26-05 is adopted, the City Manager is also seeking City Council’s authorization to begin accepting and processing cannabis-related conditional use permit (“CUP”) applications and CBP applications starting March 1, 2026 , through March 31, 2026.

RECOMMENDATION TO CITY COUNCIL

1) Adopt Resolution No. 26-05; and

2) Authorize the City Manager to accept and process applications for cannabis-related CUPs and CBPs; or

3) Alternatively, discuss and take other action related to this item.

FISCAL IMPACT

None.

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Staff Report – Resolution No. 26-05
February 9, 2026

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DISCUSSION

The City Council established the City’s first minimum standards and qualification requirements for cannabis-related businesses in 2016. Since then, the City Council has adopted and implemented a series of revisions, including minor adjustments, consolidations, and restatements of prior cannabis regulations, which culminated in the adoption of Resolution 23-18. Although these actions improved clarity and organization, the core minimum standards and qualification requirements have substantively remained unchanged. However, over the past decade, the cannabis industry underwent notable changes, including increased regulatory scrutiny, market volatility, competition from the illicit market, and banking challenges – all of which have effectively led to the consolidation or strategic acquisition of struggling cannabis operations, but the challenges remain. Overall, the challenges facing the cannabis industry and the unique challenges faced by Bellflower’s cannabis operators have highlighted the City’s need to reassess its cannabis regulations to ensure that they remain effective, defensible, and aligned with the City’s current needs.

There are four key proposed updates under Resolution No. 26-05 outlined below:

1. Resolution 23-18 does not authorize the concurrent acceptance and evaluation of CUPs and CBPs. By requiring a sequential CUP and CBP review process, there is a six to nine-month delay before CBP applications are even accepted for City Manager’s review to determine eligibility. Moreover, a concurrent application process would expand the pool of qualified applicants by allowing participation from prospective cannabis operators who do not yet hold ownership interest or long-term lease agreements for properties with existing CUPs. Under the current resolution, the City is limited to accepting CBP applications only from applicants who can demonstrate proof of an existing CUP at the proposed location of cannabis operations. To streamline the City’s cannabis application procedures, reduce unnecessary delays and promote a more competitive and equitable selection process, staff recommends authorizing the concurrent acceptance and review of CUP and CBP applications.

2. Resolution No. 23-18 currently requires applicants to demonstrate an “adequate period of performance” and “adequate financing”; however, these terms are not clearly defined, resulting in ambiguity in their application and evaluation. To address this, the City Manager recommends adopting more specific and objective definitions to strengthen the City’s review criteria. The City Manager proposes defining an “adequate period of performance” as a minimum of seven years of continuous cannabis business operations conducted in a financially stable manner, as evidenced by the absence of bankruptcies, predatory lending arrangements, and excessive debt-to-equity ratios. Additionally, the City Manager recommends enhancing the definition of “adequate financing” by replacing the current requirement of demonstrating a minimum of $400,000 through a letter of credit or similar documentation with a requirement that applicants demonstrate sufficient financial resources to cover at least 12 months of projected operating expenses. Together, these updated definitions are intended to work synergistically to raise the standard and quality of both existing and prospective cannabis operators by promoting long -term operational stability and financial viability. The City may also request periodic financial statements from cannabis operators to ensure ongoing compliance.
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Staff Report – Resolution No. 26-05
February 9, 2026

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3. Several cannabis operators within the City operate under long-term lease agreements with third-party property owners who may elect to sell the property at any time. The City’s cannabis regulations currently require operators to demonstrate either ownership of the property or a long -term lease accompanied by a notarized acknowledgment and authorization from the property owner permitting onsite cannabis operations. The City Manager identified a potential compliance concern as property owners do not consistently notify the City of their intent to sell, which could affect a cannabis operator’s continued eligibility under the City’s cannabis regulations. To preemptively address this issue, the updated resolution introduces a new requirement which would obligate cannabis applicants and existing operators to provide written notice to the City within ten days of a property being listed for sale. This additional requirement is intended to enhance transparency and ensure continued compliance with property authorization requirements.

4. Resolution 23-18 currently requires the City Council to “force rank” CBP applicants based on established standards and qualification criteria. With the proposed updates to the minimum standards and eligibility requirements, the City Manager recommends eliminating the forced-ranking system and instead adopting a first-come-first-serve consideration process, following an initial eligibility determination by the City Manager, or his designee. This approach provides a more objective method of evaluating applications. Additionally, in part due to the limited nature of cannabis business permits for retail sales, the City Manager recommends implementing a separate sealed -bidding system for dispensary and retail CBPs, modeled after public works projects bidding procedures, to foster a competitive environment among qualified applicants.

Under the proposed Resolution No. 26-05, once the City Manager establishes a pool of eligible dispensary applicants, those eligible applicants would be required to submit sealed bids. Each sealed bid would be required to include a guaranteed minimum annual revenue proposal supported by appropriate substantiating documents – unlike public works projects, the City Council would select the highest bidder rather than the lowest bidder . All sealed bids would be anonymized before presentation to the City Council for evaluation and consideration. Overall, this process is intended to promote objective decision making while ensuring the City is able to attract the highest quality cannabis businesses. Resolution No. 26-05 does not propose any alterations to the number of authorized CBPs; rather, it modernizes and strengthens the City’s existing cannabis regulations to better reflect current industry conditions and establish clear application and review procedures.

If Resolution No. 26-05 is adopted, the City Manager is also seeking City Council’s authorization to begin accepting and processing cannabis-related CUP applications and CBP applications starting March 1, 2026 through March 31, 2026.

ATTACHMENTS

Resolution No. 26-05....................................................................................................... 4 Resolution No. 23-18..................................................................................................... 16 -3-

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CITY OF BELLFLOWER

RESOLUTION NO. 26-05

A RESOLUTION IMPLEMENTING TITLE 14 OF THE BELLFLOWER

MUNICIPAL CODE BY ESTABLISHING POLICIES AND PROCEDURES

FOR OBTAINING, MODIFYING, AND MAINTAINING CANNABIS
BUSINESS PERMITS (“CBP”); AND SUPERSEDING RESOLUTION
NO. 23-18

THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1: Purpose. This Resolution is intended to implement Bellflower Municipal Code (“BMC”) Title 14 by, among other things, amending and restating all currently applicable Cannabis Regulations (as defined below) and superseding outdated policies and procedures. Unless amended or superseded by this Resolution all parts of the uncodified Cannabis Regulations (as defined below) remain in full force and effect.

SECTION 2: Maximum CBPs. Pursuant to BMC § 14.08.030(A), the City Council authorizes a maximum total of 22 CBPs. Of these, a maximum of four cannabis dispensary CBPs may be active at any time. CBPs may be granted for recreational cannabis use. The following types of cannabis-related business activities are authorized with a CBP issued in accordance with the Cannabis Regulations including, without limitation, this Resolution:

A. Cannabis cultivation (including a nursery component);

B. Cannabis dispensary (including the incidental retail sale of cannabis accessories and cannabis delivery);

C. Cannabis manufacturing;

D. Cannabis distribution (see Business and Professions Code §§ 26001 and 26070); and

E. Cannabis testing.

SECTION 3: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Resolution. Words and phrases undefined in this Resolution have the same meaning as set forth in BMC Chapter 3.37 (Cannabis Tax); Chapter Title 14 (Cannabis-Related Businesses); Chapter 17.94 (Cannabis-Related Uses); and the Cannabis Regulations.

“Applicant” means any person seeking a CBP in accordance with the Cannabis Regulations including, without limitation, persons with an existing CBP seeking a different CBP Category and/or a Modified CBP.

“Application Fee” means those fees established by city council resolution in accordance with the BMC.
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“Business Name” means the name of the permittee holding a valid CBP issued in accordance with the Cannabis Regulations.

“Cannabis Regulations” means this Resolution along with all other cannabis related regulations including, without limitation, Bellflower Municipal Code (“BMC”) Chapters 3.37 and 17.94; BMC Title 14; Resolution No. 17-44 (adopted August 14, 2017); Resolution No. 17-65 (adopted October 9, 2017); Resolution No. 18 -05 (adopted February 26, 2018); Resolution No. 18-69 (adopted October 22, 2018); Resolution No. 19-33 (adopted April 29, 2019); Resolution No. 19-65 (adopted August 12, 2019); Resolution No. 20-75 (adopted December 10, 2020); Resolution No. 21-07 (adopted January 11, 2021); Resolution No. 21-08 (adopted February 8, 2021); and Resolution No. 23-18 (adopted June 12, 2023)

“CBP” means a cannabis business permit issued in accordance with the Cannabis Regulations. For purposes of this Resolution, the singular includes the plural, i.e., “CBP” is intended to include all CBPs held by a permittee.

“CBP Category” means the cannabis-related businesses listed in Section 2 of this Resolution.

“CBP Renewal” means an application submitted pursuant to the Cannabis Regulations including, without limitation, BMC § 14.08.060. The phrase “CBP application” may include a “CBP Renewal application.”

“Conversion Applicant” means a person with one or more valid CBPs that seek to convert one or more CBPs from one CBP Category to another.

“Modified CBP” means an application requesting to modify an existing CBP by changing ownership, business name, or CBP Category.

“Origination Date” means the date upon which the City Council issued the original CBP to a permittee.

“Ownership” means either of the following:

A. A person with an aggregate ownership interest of 2 5 percent or more is the person seeking a CBP or a permittee seeking a CBP Renewal, unless the interest is solely a security, lien, or encumbrance; or

B. An individual who will be participating in the direction, control, or management of a permittee.

“Permittee” means a person who holds a valid CBP in accordance with the Cannabis Regulations.

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SECTION 4: Applications Generally. Conditional use permits (“CUPs”) and cannabis business permits (“CBPs”) were previously considered by the City Council through separate application processes, consistent with the Cannabis Regulations. This Resolution establishes a concurrent application and review process for CUPs and CBPs, under which applications may be submitted, processed and considered concurrently in accordance with the BMC.

SECTION 5: Application Fees. Applications submitted for any CBP must be accompanied by an Application Fee.

SECTION 6: Conversion Applicants. A Conversion Applicant must file an application with the City Manager, or designee, to seek conversion from on e CBP Category to another. Such application must demonstrate that the permittee complies with all aspects of its existing CBP and CUP. The application must also provide a supplementary security plan that must be approved by the City Manager, or designee, to ensure that there are sufficient protections to public health and safety from any new security concerns arising from utilization of the new CBP Category. Such approval cannot be unreasonably withheld. A Conversion Applicant may appeal any decision regarding the security plan to the City Council in accordance with the BMC.

SECTION 7: Combined Applications. A Conversion Applicant may seek a Modified CBP as part of the same application.

SECTION 8: Form and Content of Application. In addition to the requirements set forth in BMC § 14.08.040, applications for any CBP including those for a new CBP Category must be in a form prescribed by the City Manager, or designee. Unless otherwise provided by the City Manager in writing for a Conversion Applicant or a Modified CBP application, all CBP applications must comply with the following :

A. Be filed by a natural person in the name of each Applicant. The person filing the application must have an existing ownership interest in the Applicant.

B. Every application must be signed under penalty of perjury.

C. Include the name, mailing address, email address and daytime and evening telephone numbers of the person filing the application;

D. The business name, mailing address, email address and telephone number; (if applicable) the number of any existing CBP; and a single fixed location for which a CBP is sought;

E. The applicant’s Federal Employer Identification Number;

F. If the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to the application for a CBP;

G. The name and mailing address authorized by each proprietor to receive all -6-

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notices. If such an address is not supplied, notices will be sent to the business address;

H. Government issued identification to determine that each applicant, manager, and employee of the cannabis related business is over 21 years of age;

I. Whether or not the proprietor was previously issued a CBP that was suspended or revoked and, if so, the dates of the suspension period or revocation date;

J. Documentation demonstrating that that 75 percent of the applicants and managers of the cannabis related business are California residents and have been for at least three years immediately preceding the date of the application;

K. Evidence of the legal right for the applicant to occupy and use real property proposed for a cannabis related business. In the event that the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to use of the real property as a cannabis related business by the applicant. The permittee must immediately notify the City if the property on which the cannabis business operates is placed for sale by the property owner. and

L. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14.

M. If an applicant is a corporate entity, the application must also include:

1. A copy of the applicant’s Articles of Incorporation or Articles of Organization;

2. A copy of the applicant’s bylaws or operating agreement;

3. A copy of the applicant’s Certificate of Status issued by the California Secretary of State;

4. A copy of the applicant’s Entity Status Letter from the California Franchise Tax Board;

5. The identification of any individual with a financial interest in the applicant including the address, phone number, email address, description of percentage ownership interest, and copies of government issued identification for each individual; and

6. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14. -7-

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N. If the application seeks a change to the Business Name, the application must also include:

1. A copy of the applicant’s Articles of Incorporation or Articles of Organization;

2. A copy of the applicant’s bylaws or operating agreement;

3. A copy of the applicant’s Certificate of Status issued by the California Secretary of State; and

4. A copy of the applicant’s Entity Status Letter from the California Franchise Tax Board.

O. If the application seeks an ownership change, the application must also include:

1. Evidence demonstrating there has been no change in ownership since the Origination Date;

2. Evidence demonstrating that the ownership will be substantially the same as on the Origination Date. Such evidence must include a comparison of owner interest (percent owned by each owner) between the origination date and application for a Modified CBP, and an affidavit signed under penalty of perjury pursuant to the laws of the State of California that the key individuals will continue in the same position or in a position with greater responsibility; and

3. An explanation regarding the reasons for the request to change ownership.

P. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

Q. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation and maintenance costs.

R. A pro forma (including revenue projections, expense forecasts, and asset and liability estimates) for at least three years of operation.

S. How the cannabis related business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impact on its neighbors and the surrounding community.

T. A demonstration that the applicant will implement a local preference plan to hire City of Bellflower residents at 200% above the “Living wage” for the -8-

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Federal Poverty Level for a family of two.

U. The application must include a detailed description of Fire prevention, suppression, HVAC and alarm systems that includes an assessment of the cannabis related business’s fire safety by a qualified Fire prevention suppression consultant. An appropriate pla n will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation.

V. A security plan that includes a description and detailed schematic of the overall security for the cannabis related business. Applicants must detail their operational security including, without limitation, general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, Applicants should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan must also include an assessment of site security by a qualified security consultant. Such security plans may be submitted in confidence.

W. A traffic and parking study prepared by a licensed engineer to mitigate vehicle and parking impacts. The traffic and parking study must be prepared by a state licensed traffic engineer in accordance with the latest Los Angeles County’s Traffic Impact Analysis Report Guidelines and Institute of Transportation Engineers, Parking Generation. The traffic engineer preparing the study should define an appropriate approach for determining the amount of trips generated by the type of cannabis -related uses proposed and present this approach in the study. For example, and not limitation, a traffic engineer could equate cannabis manufacturing based upon the ITE Manual definitions for manufacturing of like size; or, for dispensaries, use the ITE Manual definition for retail outlets specializing in herbal products.

X. An annual contribution of $5,000 to a Drug Rehabilitation Program or Homeless Prevention Program identified by City Council resolution or minute order.

SECTION 9: Minimum Qualifications. In addition to all other requirements of applicable law including, without limitation, BMC Title 14, applicants must meet the following minimum qualifications:

A. Unless the application is filed by a Conversion Application or is for a Modified CBP without an ownership change, the Applicant must demonstrate that the Applicant is:

1. Is a person of good character, honesty, and integrity; -9-

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2. Is a person whose background, reputation and associations will not result in adverse publicity for the City of Bellflower or its economic development; and

3. Has adequate business competence and practical experience for operating the cannabis related business.

4. Each person listed in the application will undergo a Fingerprint- Based Criminal History Records Check conducted by the City Police Department (or the Los Angeles County Sheriff’s Department) which may include Live Scan and any indicated follow-up investigation.

5. Each person listed in the application must disclose whether it was (or is) a defendant in any current or past civil or criminal enforcement action. If such enforcement action is concluded, the person must disclose the outcome; if such enforcement is pending, the applicant must disclose its status.

B. If there is a proposed change in ownership that adds persons not previously considered by the City Council on the Origination Date, those persons must meet the requirements in Section 9(A).

C. The applicant must demonstrate that obtaining a CBP will be in the best interests of the City of Bellflower. The following objective criteria may be used in making such a determination for issuing a CBP:

1. Has there been an adequate period of performance by the applicant demonstrating experience for operating a cannabis related business? “Adequate period of performance” means at least seven years of continuous cannabis business operations conducted in a financially stable manner (i.e., no bankruptcies, predatory loans, high debt-to-equity ratios)

2. Does the applicant have sufficient key personnel to operate a cannabis related business to demonstrate effective managerial capacity and control of operations?

3. Does the applicant have other cannabis related businesses inside or outside the City’s jurisdiction that demonstrate the applicant’s competency in operating such businesses?

4. Does the applicant have a reasonable and practical business plan for operating a cannabis related business within the City’s jurisdiction?

5. Notwithstanding the BMC’s minimum requirements as to permissible locations, is the cannabis facility proposed by the applicant in a -10-

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location acceptable to the City Council; aesthetically pleasing; and adequate in size?

6. Would the applicant provide a public benefit in the form of removing blight; improving public welfare; or otherwise assisting in advancing the City’s public interests?

D. The Applicant must demonstrate adequate financing to satisfy all current obligations (including any owed State and Local taxes) and provide sufficient working capital to support the opening and ongoing operation of the cannabis-related business. Such demonstration must include verifiable documentation showing that the applicant has funds sufficient to pay for at least 12 months of projected operating expenses including, without limitation, payroll, recurring debt payments, rent, utilities, insurance, and inventory costs (which may be shown in a business plan described below). “Adequate financing” may be demonstrated by a letter of credit or other financial records.

E. The applicant must demonstrate that the proposed funding of the cannabis related business is:

1. Adequate for the nature of the proposed operation; and

2. From a suitable source. The suitability of the source of funds is determined by the criteria set forth in this Resolution.

F. As to the real property upon which the cannabis related business is proposed, the applicant must either:

1. Own the real property in fee; or

2. Be a long-term lessee with a possessory interest in the real property.

For purposes of this Resolution, a “long term” lessee means the applicant must have a lease with a term of at least 10 years to use the real property for a cannabis related business. In the event the ownership of the property changes at any time during the lease term, the permittee must notify the City in writing within 10 days of such change and must submit a notarized statement from the new property owner acknowledging and consenting t o the cannabis- related use of the property. Failure to do so may lead to CBP revocation.

SECTION 10: CBP Maintenance. All permittees must meet ongoing requirements for maintaining a CBP, including the following:

A. Financial Responsibility.

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1. Permittee must maintain adequate financial resources to operate the business in a fiscally sound and lawful manner.

2. Permittee must maintain working capital sufficient to cover at least 12 months of operating expenses including payroll, recurring debt payments, rent, utilities, insurance, and inventory. Financial records must be maintained and made available for inspection by the City upon request.

SECTION 11: Deadline. All applicants must file an application with the City Clerk’s Office by a time and date determined by the City Manager or City Council by minute order.

SECTION 12: Review of Application. The City Manager, or designee, is authorized to review all applications submitted pursuant to the Cannabis Regulations in accordance with the following:

A. Applications may be denied for any of the reasons set forth in the Cannabis Regulations.

B. In addition to any other requirements of the Cannabis Regulations, the City Manager must also consider:

1. As to a business name change, whether the new business name will either violate community standards or confuse City residents or consumers regarding the services being provided by the permittee.

For example, if degree of similarity between an existing business name within the City and the proposed new name of the permittee are substantially similar, whether it is reasonable to believe that residents or consumers are likely to mistakenly assume that goods/services offered by both businesses come from a common source. In making that determination, the City Manager may consider, without limitation, how and where the parties’ goods or services are advertised, marketed, and sold; the purchasing conditions; the range of prospective purchasers of the goods or services; and whether there is any evidence of actual confusion.

2. As to an ownership change, whether the permittee will substantially retain its ownership structure as compared with the Origination Date; whether the proposed ownership change meets the requirements of the Cannabis Regulations; and whether the ownership change is sufficiently routine to justify a Modified CBP.

C. For CBP Renewal applications, the City Manager must consider whether the permittee maintained its ownership as required by BMC § 14.08.070 between the time of filing an initial applicable for a CBP and filing a renewal application in any subsequent year. To do so, a CBP Renewal application must provide evidence that a permittee did not change its name; corporate -12-

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structure; or any other part of its ownership to the City Manager’s satisfaction absent good cause shown as determined in the City Manager’s sole discretion.

SECTION 13: Recommendations.

A. Upon receiving a timely filed Application, the City Manager, or designee, will determine the completeness of the Application in accordance with the Cannabis Regulations and this Resolution.

B. Following the City Manager’s consideration of the applications, the City Manager will provide the City Council with a list of Applicants deemed eligible for City Council’s consideration for a CBP.

SECTION 14: Consideration; Conditions. The City Council may determine whether to grant a Modified CBP during a special or regular meeting. If granted, a Modified CBP will

A. Expire at the same time as the existing CBP. A Modified CBP cannot extend the term of an existing CBP;

B. Except for CBP Renewal applications and Conversion Applications, the City Council will conduct a public hearing in accordance with the Cannabis Regulations. For CBP Renewal applications the City Manager (in accordance with the BMC) or City Council may determine whether a CBP Renewal should be issued.

C. Be subject to the same terms and conditions of the existing CBP and CUP.

D. Becomes effective upon the permittee executing an acknowledgement of all conditions of approval.

E. The City Council will consider each CBP application on a first-come-first- serve basis during the public hearing and determine which, if any, person will receive a CBP or CBP Renewal, if desirable.

F. Separately, CBP Applications for dispensaries will be considered through a closed-bidding process. Applicants must submit all documentation required under the Cannabis Regulations in a timely manner. Upon receipt, the City Manager, or designee, will review each application to determine compliance with minimum standards and requirements. Upon review, the City Manager, or designee, will request sealed bids from each qualified Applicant, each of which must include a guaranteed minimum revenue accompanied by substantiating documentation. All sealed bids will be anonymized before presentation to the City Council for consideration.

G. The applicant will comply with all requirements of the Cannabis Regulations.

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SECTION 15: Application Forms; Standard Conditions of Approval. All application forms and standard conditions of approval previously approved by the Cannabis Regulations may continue to be utilized by the City Manager, or designee. The City Manager is authorized to make changes to such forms and conditions as desirabl e and in a form approved by the City Attorney. No additional City Council approval is required for such changes. Applicant(s) will be required to provide signed acknowledgement of acceptance of the conditions of approval before City Council consideration if an application is recommended for approval.

SECTION 16: Taxes. In addition to any other applicable taxes, CBP permittees must also pay a business license tax and cannabis tax in accordance with the BMC. Such taxes are separate and apart from the Application Fee. For a CBP to become effective, a permittee must:

A. Pay the business license tax and obtain a business license in accordance with the BMC (see, BMC §§ 5.08.020 and 5.08.030); and

B. Ensure, to the satisfaction of the City Manager, or designee, that the permittee will pay all cannabis taxes in accordance with the requirements of BMC Chapter 3.37 including, without limitation, acknowledging the forms required to remit the tax.

SECTION 17: Delegation of Authority; Ratification of Previous Actions. The City Manager, or designee, is authorized to promulgate administrative policies and procedures (“AP&P”) that implement BMC Title 14 and, specifically, such additional qualifications for CBP Renewal or Reconsideration Application that may be desirable for administrative purposes. Nothing in such AP&P can substantively alter this Resolution; the AP&P must be reconciled with the intent of BMC Title 14 and this Resolution.

All previous actions exercised by the City Manager, or designee, to implement the Cannabis Regulations as set forth in this Resolution are ratified by the City Council.

SECTION 18: Preservation; Cannabis Regulations. Anything in this Resolution that supersedes previous actions undertaken to implement BMC § 14.08.050 does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Resolution’s effective date.

Any such amended or superseded part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.

Unless amended or superseded by this Resolution, all parts of the uncodified regulations implementing Cannabis Regulations within the BMC remain in full force and effect. Any conflict between this Resolution and the uncodified Cannabis Regulations will be resolved in favor of this Resolution.

SECTION 19: Supplemental Requirements. The policies and procedures established by this Resolution are in addition to, and supplement, all other requirements of the BMC including, without limitation, those set forth in BMC § 14.08.060.

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SECTION 20: Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application and, to this end, the provisions of this Resolution are severable.

SECTION 21: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 22: The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, may attest thereto.

SECTION 23: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 9TH DAY OF FEBRUARY 2026.

________________________________
Sonny R. Santa Ines, Mayor
ATTEST:

_______________________________
Mayra Ochiqui, City Clerk

APPROVED AS TO FORM:

Karl H. Berger, City Attorney

________________________________________
By: Justin A. Tamayo, Assistant City Attorney

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CITY OF BELLFLOWER
RESOLUTION NO. 23-18
A RESOLUTION IMPLEMENTING TITLE 14 OF THE BELLFLOWER

MUNICIPAL CODE BY ESTABLISHING POLICIES AND PROCEDURES

FOR OBTAINING, MODIFYING, AND MAINTAINING CANNABIS
BUSINESS PERMITS ("CBP"); AND SUPERSEDING RESOLUTION
NOS. 21-07 AND 21-08
THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1: Purpose. This Resolution is intended to implement Beilflower Municipal Code ("BMC") Title 14 by, among other things, consolidating and restating all currently applicable Cannabis Regulations (as defined below); and superseding policies and procedures that are now outdated. Nevertheless, unless amended or superseded by this Resolution all parts of the uncodified Cannabis Regulations (as defined below) remain in full force and effect.

A. Cannabis cultivation (including a nursery component); B. Cannabis dispensary (including the incidental retail sale of cannabis accessories and cannabis delivery);
C. Cannabis manufacturing; and
D. Cannabis distribution (see Business and Professions Code §§ 26001 and 26070).

SECTION 3: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Resolution. Words and phrases undefined in this Resolution have the same meaning as set forth in BMC Chapter 3.37 (Cannabis Tax); Chapter Title 14 Cannabis-Related Businesses); Chapter 17.94 (Cannabis-Related Uses); and the Cannabis Regulations.

Applicant" means any person seeking a CBP in accordance with the Cannabis Regulations including, without limitation, persons with an existing CBP seeking a different CBP Category and/or a Modified CBP.

Application Fee" means those fees established by city council resolutian in accardance with the BMC.

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Business Name" means the name of the permittee holding a valid CBP issued in accordance with the Cannabis Regulations.

Cannabis Regulations" means this Resolution along with all other cannabis related regulations including, without limitation, Beliflower Municipal Code ("BMC") Chapters 3.37 and 17.94; BMC Title 14; Resolution No. 17-44 (adopted August 14, 2017); Resolution No. 17-65 (adopted October 9, 2017); Resolution No. 18-05 adopted February 26, 2018); Resolution No. 18-69 (adopted October 22, 2018); Resolution No. 19-33 (adopted April 29, 2019); Resolution No. 19-65 (adopted August 12, 2019); Resolution No. 20-75 (adopted December 10, 2020); Resolution No. 21-07 (adopted January 11, 2021}; and Resolution No. 21-08 (adopted February 8, 2021).

CBP" means a cannabis business permit issued in accordance with the Cannabis Regulations. For purposes of this Resolution, the singular includes the plural, i.e., CBP" is intended to include all CBPs held by a permittee.

CBP Category" means the cannabis-related businesses listed in Section 2 of this Resolution.

CBP Renewal" means an application submitted pursuant to the Cannabis Regulations including, without limitation, BMC § 14.08.060. The phrase "CBP application" may include a "CBP Renewal application."
Conversion Applicant" means a person with one or more existing or previously issued CBPs that seek to convert one or more CBPs from one CBP Category to another.

Modified CBP" means an application requesting to modify an existing CBP by changing ownership, business name, or CBP Category.

Origination Date" means the date upon which the City Council issued the original CBP to a permittee. For example, at the time this Resolution was adopted, all existing permittees were issued a CBP on or about December 18, 2017 which constitutes the Origination Date for those permittees.

Ownership" means either of the following:

A. A person with an aggregate ownership interest of 25 percent or more in the person seeking a CBP or a permittee seeking a CBP Renewal, unless the interest is solely a security, lien, or encumbrance; or
B. An individual who will be participating in the direction, control, or management of a permittee.

Permittee" means a person who holds a valid CBP in accordance with the Cannabis Regulations.
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SECTION 4: Applications Generally. Conditional use permits ("CUPs°) and cannabis business permits ("CBPs") were previously considered by the City Council as a joint application in accordance with the Cannabis Regulations. This Resolution assumes that all CUPs were approved and recorded in accordance with the Cannabis Regulations.

Any future applications for a cannabis related CUP must be filed and processed in n li i n will not be rocessed.accordance with the BMC, oi t app cat o s p SECTION 5: Applrcation Fees. Applications submitted for any CBP must be accompanied by an Application Fee.

SECTION 6: Conversion Applicants. A Conversion Applicant must file an application with the City Manager, or designee, to seek conversion from one CBP Category to another. Such application must demonstrate that the permittee complies with all aspects of its existing CBP. The application must also provide a supplementary security plan that must be approved by the City Manager, or designee, to ensure that there are sufficient protections to public health and safety from any new security concerns arising from utilization of the new CBP Category. Such approval cannot be unreasonably withheld. A Conversion Applicant may appeal any decision regarding the security plan to the City Council in accordance with the BMC.

SECTION 7: Combined Applications. A Conversion Applicant may seek a Modified CBP as part of the same application.

A. Be filed by a natural person in the name of each Applicant. The person filing the application must have an existing ownership interest in the Applicant.

B. Every application must be signed under penalty of perjury.

C. Include the name, mailing address, and daytime and evening telephone numbers of the person filing the application;
D. The business name, address, and telephone number; (if applicable) the number of any existing CBP; and a single fixed location for which a CBP is sought;
E. The applicant's Federal Employer ldentification Number; F. If the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to the application for a CBP; -18-

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G. The name and mailing address authorized by each proprietor to receive all notices. If such an address is not supplied, notices will be sent to the business address;
H. Government issued identification to determine that each applicant, manager, and employee of the cannabis related business is over 18 years of age;
I.Whether or not the proprietor was previously issued a CBP that was suspended or revoked and, if so, the dates of the suspension period or revocation date;
J. Documentation demonstrating that that 75 percent of the applicants and managers of the cannabis related business are California residents and have been for at least three ears immediatel r iyypeced ng the date of the application;
K. Evidence of the legal right for the appiicant to occupy and use real property proposed for a cannabis related business. In the event that the a licant isPP not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to use of the real property as a cannabis related business by the applicant; and
L. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14.

M. If an applicant is a corporate entity, the application must also include:

1. A copy of the applicant's Articles of Incorporation or Articles of Organization;

2. A copy of the applicanYs bylaws or operating agreement;

3. A copy of the applicant's Certificate of Status issued by the California Secretary of State;

4. A copy of the applicanYs Entity Status Letter from the California Franchise Tax Board;

6. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14. -19-

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N. If the application seeks a change to the Business Name, the application must also include:

1. A copy of the applicant's Articles of Incorporation or Articles of Organization;

2. A copy of the applicant's bylaws or operating agreement;

3. A copy of the applicant's Certificate of Status issued by the California Secretary of State; and

4. A copy of the applicant's Entity Status Letter from the California Franchise Tax Board.

O. If the application seeks an ownership change, the application must also include:

1. Evidence demonstrating there has been no change in ownership since the Origination Date;

3. An explanation regarding the reasons for the request to change ownership.

P. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

Q. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation and maintenance costs.

R. A pro forma for at least three years of operation.

T. A demonstration that the applicant will implement a local preference plan to hire City of Bellflower residents at 200% above the "Living wage" for the Federal Poverty Level for a family of two.
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U. The application must include a detailed description of Fire prevention, suppression, HVAC and alarm systems that includes an assessment of the cannabis related business's fire safety by a qualified Fire prevention suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation.

V. A security plan that includes a description and detailed schematic of the overall security for the cannabis related business. Applicants must detail their operational security including, without limitation, general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, Applicants should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems alarms and cameras), and security personnel to be employed. The security plan must also include an assessment of site security by a qualified security consultant. Such security plans may be submitted in confidence.

W. A traffic and parking study prepared by a licensed engineer to mitigate vehicle and parking impacts. The traffic and parking study must be prepared by a state licensed traffic engineer in accordance with Los Angeles County's Traffic Impact Analysis Report Guidelines (January 1997) and Institute of Transportation Engineers, Parking Generation, 4th Edition. The traffic engineer preparing the study should define an appropriate approach for determining the amount of trips generated by the type of cannabis-related uses proposed and present this approach in the study. For example, and not limitation, a traffic engineer could equate cannabis manufacturing based upon the ITE Manual definitions for manufacturing of like size; or, for dispensaries, use the ITE Manual definition for retail outlets specializing in herbal products.

X. An annual contribution of $5,000 to a Drug Rehabilitation Program or Homeless Prevention Program identified by City Council resolution or minute order.

SECTION 9: Minimum Qualifications. In addition to all other requirements of applicable law including, without limitation, BMC Title 14, applicants must meet the following minimum qualifications:

A. Unless the application is filed by a Conversion Application or is for a Modified CBP without an ownership change, the Applicant must demonstrate that the Applicant is:

1. Is a person of good character, honesty, and integrity; -21-

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2. Is a person whose background, reputation and associations will not result in adverse publicity for the City of Beliflower or its economic development; and

3. Has adequate business competence and practical experience for operating the cannabis related business.

4. Each person listed in the application wili undergo a Fingerprint- Based Criminal History Records Check conducted by the City Police Department (or the Los Angeles County Sheriff's Department) which may include Live Scan and any indicated follow-up investigation.

B. If there is a proposed change in ownership that adds persons not previously considered by the City Council on the Origination Date, those persons must meet the requirements in Section 9(A).

1. Has there been an adequate period of performance by the applicant demonstrating experience for operating a cannabis related business?

2. Does the applicant have sufficient key personnel to operate a cannabis related business to demonstrate effective managerial capacity and control of operations?

3. Does the applicant have other cannabis related businesses inside or outside the City's jurisdiction that demonstrate the applicant's competency in operating such businesses?

4. Does the applicant have a reasonable and practical business plan for operating a cannabis related business within the City's jurisdiction?

5. Notwithstanding the BMC's minimum requirements as to permissible locations, is the cannabis facility proposed by the applicant in a location acceptable to the City Council; aesthetically pleasing; and adequate in size?
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6. Would the applicant provide a public benefit in the form of removing blight; improving public welfare; or otherwise assisting in advancing the City's public interests?
D. There must be adequate financing to pay all current obligations and to provide adequate working capital to finance opening of a cannabis related business (which may be shown in a business plan described below).

Adequate financing" means a minimum of$400,000 as demonstrated by a letter of credit or other financial records.

E. The applicant must demonstrate that the proposed funding of the cannabis related business is:

1. Adequate for the nature of the proposed operation; and

2. From a suitable source. The suitability of the source of funds is determined by the criteria set forth in Section 9(A) (1-3), above.

F. As to the real property upon which the cannabis related business is proposed, the applicant must either:

1. Own the real property in fee; or

2. Be a long-term lessee with a possessory interest in the real property.

For purposes of this Resolution, a "long term" lessee means the applicant must have a lease with a term of at least 10 years to use the real property for a cannabis related business.

SECTION 10: Deadline. All applicants must file an application with the City Clerk's Office by a time and date determined by the City Manager or City Council by minute order.

SECTION 11: Review of Application. The City Manager, or designee, is authorized to review all applications submitted pursuant to the Cannabis Regulations in I accordance with the following:

A. Applications may be denied for any of the reasons set forth in the Cannabis Regulations.

B. In addition to any other requirements of the Cannabis Regulations, the City I Manager must also consider:

1. As to a business name change, whether the new business name will either violate community standards or confuse City residents or consumers regarding the services being provided by the permittee.

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residents or consumers are likely to mistakenly assume that goods/services offered by both businesses come from a common source. In making that determination, the City Manager may consider, without limitation, how and where the parties' goods or services are advertised, marketed, and sold; the purchasing conditions; the range of prospective purchasers of the goods or services; and whether there is any evidence of actual confusion.

SECTION 12: Recommendations.

A. Upon receiving a timely filed Application, the City Manager, or designee, will determine the completeness of the Application in accordance with the Cannabis Regulations and this Resolution.

B. Following the City Manager's consideration of the applications, the City Manager will provide a recommendation to the City Council regarding whether an application should be approved.

SECTION 13: Consideration; Conditions. The City Council may determine whether to grant a Modified CBP during a special or regular meeting. If granted, a Modified CBP will:

A. Expire at the same time as the existing CBP. A Modified CBP cannot extend the term of an existing CBP;
B. Except for CBP Renewal applications and Conversion Applications, the City Council will conduct a public hearing in accordance with the Cannabis Regulations. For CBP Renewal applications the City Manager (in accordance with the BMC) or City Council may determine whether a CBP Renewal should be issued.

C. Be subject to the same terms and conditions of the existing CBP. -24-

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D. Becomes effective upon the permittee executing an acknowledgement of all conditions of approval.

E. If desirable, the City Council may determine the order for considering Applications during the public hearing to be based upon a random drawing conducted by the City Clerk. Applications will be considered by the City Council using a "forced ranking" system to determine which, if any, person will receive a CBP or CBP Renewal, if desirable.

F. The applicant will comply with all requirements of the Cannabis Regulations.

SECTION 14: Application Forms; Standard Conditions of Approval. All application forms and standard conditions of approval previously approved by the Cannabis Regulations may continue to be utilized by the City Manager, or designee. The City Manager is authorized to make changes to such forms and conditions as desirable and in a form approved by the City Attorney. No additional City Council approval is required for such changes. Applicant(s) will be required to provide signed acknowledgement of acceptance of the conditions of approval before City Council consideration if an application is recommended for approval.

SECTION 15: Taxes. In addition to any other applicable taxes, CBP permittees must also pay a business license tax and cannabis tax in accordance with the BMC. Such taxes are separate and apart from the Application Fee. For a CBP to become effective, a permittee must:

A. Pay the business license tax and obtain a business license in accordance with the BMC (see, BMC §§ 5.08.020 and 5.08.030); and
B. Ensure, to the satisfaction of the City Manager, or designee, that the permittee will pay all cannabis taxes in accordance with the requirements of BMC Chapter 3.37 including, without limitation, acknowledging the forms required to remit the tax.

SECTION 16: Delegation of Authority; Ratification of Previous Actions. The City Manager, or designee, is authorized to promulgate administrative policies and procedures ("AP&P") that implement BMC Title 14 and, specifically, such additional qualifications for CBP Renewal or Reconsideration Application that may be desirable for administrative purposes. Nothing in such AP&P can substantively alter this Resolution; the AP&P must be reconciled with the intent of BMC Title 14 and this Resolution.

All previous actions exercised by the City Manager, or designee, to implement the Cannabis Regulations as set forth in this Resolution are ratified by the City Council.

SECTION 17: Preservation; Cannabis Regulations. Anything in this Resolution that supersedes previous actions undertaken to implement BMC § 14.08.050 does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Resolution's effective date.

Any such amended or superseded part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. -25-

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SECTION 18: Supplemental Requirements. The policies and procedures established by this Resolution are in addition to, and supplement, all other requirements of the BMC including, without limitation, those set forth in BMC § 14.08.060.

SECTION 19: Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application and, to this end, the provisions of this Resolution are severable.

SECTION 20: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 21: The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, may attest thereto.

SECTION 22: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.

PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 12T" DAY OF JUNE 2023.
v
Sonny R. Santa Ines, Mayor
ATTEST:

Mayr Oc '{ui, City Clerk
AP RO D O RM:

G
Karl H. Berger, Ci Attorney
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STATE OF CALIFORNIA

COUNTY OF LOS ANGELES )SS

CITY OF BELLFLOWER
I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 23-18 was duly passed, approved, and adopted by the City Council of the City of Bellflower at the Regular Meeting of the City Council on June 12, 2023, by the following vote to wit:

AYES: Council Members — Dunton, Koops, Sanchez and
Mayor Santa Ines
ABSENT: Council Member — Mayor Pro Tem Hamada
Dated: June 13, 2023
J
ayr Oc qui, Ci C r
City(of B Ilflower, California
SEAL)
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Bellflower City CouncilFebruary 9, 2026

Bellflower City Council
February 9, 2026