05232023-ORD-23sr&att.pdf — Long Beach City Council, June 6, 2023 (part 4 of 4)

C. Compatibility with odor prevention and ventilation systems.

Cultivators shall implement an environmental control system that is adequately compatible with any odor control prevention and ventilation systems at the cultivation site. For purposes of this Section, "adequately compatible" means that any environmental control systems and odor control systems operating at the cultivation site operate concurrently to prevent cannabis odors from being detected outside the cultivation site, while still allowing for the permittee to successfully cultivate.

5.92.1040 Water source.

Cultivators shall comply with California Water Code Section 13149 and any implementing regulations, policies, or guidelines adopted by the State Water Resources Control Board regarding water usage, the diversion of water, and the discharge of waste while cultivating cannabis.

5.92.1045 Carbon dioxide testing.

Cultivators shall test carbon dioxide levels within cultivation areas at the cultivation site, if carbon dioxide is added to the air. No carbon dioxide shall be ADS:ag A22-01316 (4-25-22)
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28 utilized for cultivation without prior inspection and approval of the City's Building Official and the Fire Code Official.

5.92.1050 Storage and use of compressed gas.

A. Storage and use of compressed gases in compressed gas containers, cylinders, tanks, and systems used for cultivation shall comply with this Code and the California Fire Code.

B. Any compressed gases used in cultivation shall not be stored on any property within the City in containers that exceed the amount that is approved by the Fire Code Official and authorized by the Adult-Use Cannabis Business Permit.

5.92.1055 Pesticides.

A. Cultivators shall comply with all applicable federal, State and local laws and regulations regarding use, storage, and disposal of pesticides and fertilizers, including, without limitation, those enforced by the State Department of Food and Agriculture and State Department of Pesticide Regulation. Cultivators shall ensure hazards are not created on the permitted premises by the use or storage of chemicals, fertilizers, materials, processes, products, or wastes.

B. Pesticides, insecticides, and/or fertilizers prohibited by federal, state, or local law for fertilization or production of edible produce shall not be used for cultivation.

C. Employee safety. At a minimum, Cultivators using pesticides shall protect all employees from exposure to pesticides by following pesticide labels; providing required personal protective equipment; providing access to pesticide labels, safety information, and training on an annual basis; properly ventilating all areas of the cultivation site; and proper storage, handling, and disposal of pesticides in compliance with State, federal, and local laws and regulations pertaining to pesticide use and ADS:ag A22-01316 (4-25-22)
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28 worker safety.

5.92.1060 Packaging and labeling.

A. All cannabis packaged and/or labeled by a Cultivator shall meet the provisions of packaging and labeling requirements specified by State law, including but not limited to, California Business and Professions Code Division 5 ("Weights and Measures") and Division 10 ("Cannabis") and any regulations implemented and enforced by the Bureau of Cannabis Control, the State Department of Public Health, or State Department of Food and Agriculture.

B. Prior to distribution and transportation, a Cultivator shall package and seal all cannabis in tamper-evident packaging and use a unique identifier of the harvest batch to identify and track said cannabis.

C. Product labels. All labels for cannabis shall include all of the following: all required government warnings; the net weight of cannabis in the package; source and the date of cultivation; the type of cannabis; the date of packaging; and the product's unique identifier for the harvest batch.

D. Packaging that makes cannabis attractive to children or imitates candy is prohibited.

5.92.1065 Accurate weights and measures.

A. Weighing devices used by a Cultivator shall be approved, tested, sealed, and registered with the Los Angeles County Agricultural Commissioner/Weights and Measures in compliance with California Business and Professions Code Division 5 ("Weights and Measures") and Division 1 O ("Cannabis"), any regulations implemented by the State Department of Food and Agriculture, and all other applicable local, State, and Federal laws.

B. Cultivators are prohibited from using scales, weights, or measures that do not accurately conform to the standard of weights and ADS:ag A22-01316 (4-25-22)
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28 measures of the State and county.

DIVISION VI - MANUFACTURING OPERATING CONDITIONS
In addition to the general operating requirements set forth in Division Ill of this Chapter, this Division provides additional requirements for Manufacturers.

5.92.1110 Compliance.

A. The manufacture of cannabis products shall comply with the standards set by State and local law, including but not limited to those related to volatile and nonvolatile extractions; labeling, packaging, repackaging, and relabeling; infusions; safety; discharges; waste disposal; processing, handling, and storage of solvents or gases; and food handling.

B. Manufacturers shall only be allowed to engage in the manufacture of cannabis authorized by State law and in the Adult-Use Cannabis Business Permit issued for the premises. No additional manufacturing activities may be conducted without applying for, and receiving written permission, from the City for said additional activity.

C. The manufacture of cannabis products shall be conducted in a manner to ensure the operation does not pose a significant threat to the health, safety, and welfare of the public or to neighboring properties.

5.92.1115 Additional ventilation requirements.

A. In additional to the general odor control and ventilation requirements in Section 5.92.540, Manufacturers shall utilize adequate ventilation or control equipment to minimize dust, odors, and vapors (including steam and noxious fumes) in areas where they may cause allergen cross-contact or contamination of cannabis products.

B. Fans and other air-blowing equipment used at a
manufacturing facility shall be used in a manner that minimizes the potential ADS:ag A22-01316 (4-25-22)
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for allergen cross-contact and contamination of manufactured cannabis products or packaging materials and contact surfaces intended for manufactured cannabis handling or production.

5.92.1120 Sanitation standards.

A Manufacturer shall comply with sanitation standards equivalent to the California Retail Food Code (Part 7 (commencing with Section 113700) of Division 104 of the California Health and Safety Code) for food preparation, storage, handling, and sale of products. Cannabis, including concentrated cannabis in a cannabis product, manufactured in compliance with this Chapter and State law is not considered an adulterant under this Chapter.

5.92.1125 Quality and preventative controls.

A. Quality control. A Manufacturer shall employ quality control personnel and establish standard operating procedures that comply with current good manufacturing practices, as outlined by the State Department of Public Health and the U.S. Food and Drug Administration.

8. Preventative controls. All Manufacturers have a continuous obligation to identify and/or evaluate known or reasonably foreseeable hazards and implement written preventive controls to significantly minimize or prevent manufactured cannabis products from becoming adulterated or misbranded.

5.92.1130 Standard operating procedures.

A Manufacturer creating cannabis extracts shall develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.

5.92.1135 Fire Code Official approval required.

Manufacturers conducting extractions, including any professional closed loop systems or equipment used in extraction or processing, shall be approved for their use by the Fire Code Official and shall comply with the following ADS:ag A22-01316 (4-25-22)
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28 requirements:

A. Any required fire, safety, and building code requirements specified in the California Building and Fire Codes, as adopted by the City.

B. Any State laws and regulations implemented and enforced by the State Department of Public Health.

5.92.1140 Vacuum ovens.

A. Vacuum ovens shall not be used to process volatile solvents or flammable/combustible liquids contained in cannabis concentrate unless said vacuum oven is rated to process the vapors of volatile solvents or flammable/combustible liquids, such as a vacuum oven that is rated with an explosion-proof classification.

B. Manufacturers conducting extractions with a vacuum oven shall take adequate precautions to ensure that any cannabis concentrate introduced into said oven does not contain volatile solvents or flammable/combustible liquids.

C. All vacuum ovens used in the manufacture of cannabis products shall be listed by a Nationally Recognized Testing Laboratory (NRTL).

5.92.1145 Doors to extraction room.

Doors to any room where Manufacturers use volatile solvents, hazardous materials, or flammable/combustible liquids in the manufacture of cannabis shall swing in the direction of egress, be self-closing and/or self-latching, and be provided with panic hardware.

5.92.1150 Refrigerators.

A. Volatile solvents, hazardous chemicals, and
flammable/combustible liquids, including volatile solvents, hazardous chemicals, and flammable/combustible liquids contained in concentrated cannabis or cannabis goods, shall be stored in a refrigerator, refrigerated ADS:ag A22-01316 (4-25-22)
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28 storage, or a freezer rated to store flammable liquids.

B. Manufacturers shall store and process all volatile solvents or flammable/combustible liquids, including concentrated cannabis and manufactured cannabis that contains volatile solvents or flammable/combustible liquids, in refrigerators, refrigerated storage, or freezers rated to store flammable liquids which are, at a minimum, rated "Lab-Safe" or "Flammable Safe."

5.92.1155 Closed loop system required.

A. Chemical extractions using carbon dioxide or a volatile solvent shall be conducted in a professional and commercially manufactured closed loop extraction system that has been certified by a California-licensed engineer. All professional and commercially manufactured closed loop systems shall bear a permanently affixed and viable serial number .

B. No closed loop systems shall be utilized without prior inspection and approval of the Fire Code Official.

C. Certification requirements.

1. Certifications from a California-licensed engineer of any closed loop system used by a Manufacturer shall be provided to the Fire Code Official to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:
(ASME);
(ASTM).

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a. The American Society of Mechanical Engineers
b. American National Standards Institute (ANSI);
c. Underwriters Laboratories (UL); or
d. The American Society for Testing and Materials

2. The certification document required pursuant this
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28 subsection shall contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified.

D. Training required. Any person using solvents or gases in a closed looped system to create cannabis extracts shall be fully trained on how to use the system, have direct access to applicable material safety data sheets, and handle and store the solvents and gases safely in compliance with State and local laws and regulations.

5.92.1160 Volatile and nonvolatile solvents permitted.

A. Manufacturers may only use volatile solvents or gases approved by the Fire Code Official and State law for extractions.

Manufacturers may use nonvolatile solvents or mechanical processes to create or refine extracts, if approved by the Fire Code Official.

B. Any extraction process must use solvents or gases in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation. Manufacturers shall control all sources of ignition where a flammable atmosphere is or may be present.

5.92.1165 Change in solvent.

A. Any Manufacturer that changes the medium of extraction or solvent used in manufacturing from the technical report previously approved by the Fire Code Official shall submit a revised technical report for approval of the Fire Code Official prior to the use of the equipment with said new medium or solvent. The technical report shall be revised at the cost of the Manufacturer.

B. If the original engineer of record that drafted the last approved technical report is not available, then the Manufacturer shall comply with the following requirements prior to submitting a revised technical report to the Fire Code Official that has been drafted by a new engineer of record:

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28 1. The Manufacturer shall submit the new engineer's
educational background and professional experience specific to the review and approval of system, equipment, and processes with like hazards of those associated with the extraction system to the Fire Code Official.

2. Once the proof of qualifications is deemed acceptable by the Fire Code Official, the engineer of record shall produce the technical report and the report shall be signed and sealed in accordance with State requirements. The proof of qualifications shall include documentation indicating the person is a professional engineer licensed in the State.

5.92.1170 Storage and use of compressed gas.

A. Storage and use of compressed gases in compressed gas containers, cylinders, tanks, and systems used for cannabis manufacturing shall comply with this Code and the California Fire Code.

B. Any compressed gases used in the manufacturing process shall not be stored on any property within the City in containers that exceed the amount that is approved by the Fire Code Official and authorized by the Adult-Use Cannabis Business Permit.

5.92.1175 Hazardous material requirements.

Manufacturers that use and generate hazardous materials or hazardous waste shall comply with all applicable hazardous material regulations for hazardous waste generators and hazardous material handling requirements and shall maintain any applicable permits from the Certified Unified Program Agency (CUPA) of Long Beach for said regulations and requirements.

5.92.1180 Edible cannabis products.

A. The manufacture, distribution, and transportation of edible cannabis products shall be conducted in a manner that complies with all applicable food safety laws for the protection of humans consuming cannabis.

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28 B. Cannabis facility requirements and limitations.

1. All products, storage facilities, utensils, equipment, and materials used for the manufacture of edible cannabis products shall be approved, used, managed, and handled in accordance to the provisions of all State and local laws regarding the preparation, distribution, labeling, and sale of food.

2. Any manufacturing site that proposes to prepare, store, dispense, and distribute edible cannabis products shall comply with the relevant provisions of all State and local laws regarding the preparation, distribution, labeling, and sale of food.

3. No food production shall be allowed in a facility where edible cannabis products are manufactured to avoid the unintentional contamination of non-cannabis foods with cannabis.

4. Facilities where edible cannabis products are
manufactured shall be constructed, permitted, operated, and inspected in accordance with the applicable building code and applicable food safety requirements.

5.92.1185 Food handler certification.

All owners, employees, volunteers, or other individuals that participate in the production of edible cannabis products shall be State certified food handlers.

The valid certificate number of each such owner, employee, volunteer, or other individual shall be on record at the permitted premises where said individual participates in the production of edible cannabis products.

5.92.1190 Packaging and labeling.

A. All manufactured cannabis products packaged and/or labeled by a Manufacturer shall meet the provisions of packaging and labeling requirements specified by State law, including but not limited to, California Business and Professions Code Division 5 ("Weights and Measures") and ADS:ag A22-01316 (4-25-22)
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28 Division 10 ("Cannabis"), and any regulations implemented and enforced by the Bureau of Cannabis Control or the State Department of Public Health.

B. Packaging that makes cannabis products attractive to children or imitates candy is prohibited.

C. Prior to release of a product to a Distributor, Manufacturers shall package and seal all cannabis products in tamper-evident packaging and use a unique identifier for the manufactured cannabis batch to identify and track the cannabis products.

D. Edible cannabis products shall not exceed 10 milligrams of tetrahydrocannabinol (THC) per serving. The THC content for the edible cannabis product in its entirety shall be printed on the edible cannabis product packaging.

5.92.1195 Accurate weights and measures.

A. Manufacturers shall maintain all weighing devices in good working order, approved, tested, sealed, and registered with the Los Angeles County Agricultural Commissioner/Weights and Measures in compliance Division 5 ("Weights and Measures") of the California Business and Professions Code, any regulations implemented by the Manufactured Cannabis Safety Branch, and all other applicable local, State, and Federal laws.

B. Manufacturers are prohibited from using scales, weights, or measures that do not accurately conform to the standard of weights and measures of the State and county.

DIVISION VII - SHARED USE MANUFACTURING OPERATING CONDITIONS Manufacturing facilities may be shared, containing multiple licensed permit holders for a single premises. In addition to the general operating requirements set forth in Division Ill and the manufacturing operating requirements set forth in ADS:ag A22-01316 (4-25-22)
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28 Division VI of this Chapter, this Division provides additional requirements for Shared Use Manufacturing.

5.92.1210 Compliance·
A. The manufacture of cannabis products in shared-use facilities shall comply with the standards set by State and local law, including but not limited to those related to volatile and nonvolatile extractions; labeling, packaging, repackaging, and relabeling; infusions; safety; discharges; waste disposal; processing, handling, and storage of solvents or gases; and food handling.

5.92.1215 Equity licenses prioritized.

A. The City shall accept applications for Shared Use
Manufacturing Operator Licenses from Verified Equity Businesses only for a period of one (1) year, or until fifteen (15) Operator licenses have been issued, whichever occurs sooner. The one-year period shall not start until the date the City begins accepting applications for Shared Use Manufacturing Operator Licenses.

B. After the one-year period has concluded, the City shall begin accepting applications from all qualifying applicants for the Shared Use Manufacturing Operator license pursuant to this chapter.

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28 5.92.1220 Principal Licensees.

A. Shared-use manufacturing facilities are required to have a Principal Licensee, who is responsible for the facility.

B. The principal licensee shall operate the shared-use facility in accordance with the conditions of operation specified in this Chapter.

C. The shared-use manufacturing principal licensee shall be responsible for ensuring the facility meets all applicable requirements of this Chapter.

D. No cannabis manufacturer shall operate as a shared-use manufacturing facility without prior approval of the City.

E. Licensed cannabis manufacturers in good standing may request to operate as a shared-use manufacturing facility on a form prescribed by the Director of Financial Management.

5.92.1225 Operator Licensees.

A. Operator licenses will only be issued to businesses that have received written authorization to operate in a licensed shared-use manufacturing facility.

B. Operator Licensees may only conduct the following
operational activities:

1. Infusions, as defined by this Chapter;

2. Packaging and labeling of cannabis products; and,

3. Extractions with butter or food-grade oils, provided that the resulting extract or concentrate shall be used solely in the manufacture of the Operator Licensee's infused product and shall not be sold to any other licensee.

C. Operator licensees shall have a separate license for each shared-use manufacturing facility where they are conducting manufacturing operations.

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28 D. Operator Licensees may only operate at the facility identified by their license and during the hours set forth in the occupancy schedule.

5.92.1230 Exemptions.

A. Operator Licensees are exempt from the following provisions of this Chapter:

1. 5.92.215.3.d (Proof that the applicant has the legal right to occupy and use the premises for commercial cannabis activity)

2. 5.92.250 (One applicant per address)

3. 5.92.425 (Noncompliant locations)

4. 5.92.435 (Premises Requirements)

5. 5.92.860 (Subletting prohibited)

5.92.1235 Use agreements.

A. The Principal licensee and the Operator Licensee(s) may take part in a use agreement which may allocate responsibility for providing and maintaining commonly used equipment and services, including, but not limited to, security systems, fire monitoring and protection services, and waste disposal services. However, such agreement is not binding on the City and the City may take enforcement action against either the principal licensee or the Operator Licensee(s), regardless of the allocation of responsibility in the use agreement.

5.92.1240 Designated areas.

A. The Principal licensee will identify and assign each Operator Licensee a "designated area" that, at a minimum:

1. Is for exclusive use by the Operator Licensee; and,

2. Provides an area for storage that is secure, fixed in place, locked with a commercial-grade lock, and accessible only to the Operator Licensee for storage of that Operator Licensee's cannabis, cannabis concentrates, and cannabis products.

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28 B. The designated area for an Operator Licensee shall not be altered without prior notification to the City. Prior to making any changes to the designated area, written notification shall be submitted to the City that includes the intended changes. The City shall approve all changes prior to the designated area being altered.

5.92.1245 Common-use areas.

A. The Principal licensee will identify and assign common-use area(s) authorized for use by the Operator Licensee.

B. Any part of the premises used for manufacturing activities that is a common-use area shall be occupied by only one licensee at a time by restricting the time period that each licensee may use the common-use area. During the assigned time period, one licensee shall have sole and exclusive occupancy of the common-use area.

C. The principal licensee may conduct manufacturing activities as permitted under its medical or adult-use manufacturing license and may use the common-use area during its scheduled time period.

5.92.1250 Occupancy schedules.

A. The Principal licensee is responsible for providing an occupancy schedule that identifies the days and/or times each Operator Licensee is authorized to use the common-use area(s).

B. The occupancy schedule shall be prominently posted near the entrance to the licensed shared-use facility.

C. The occupancy schedule shall not be altered without prior notification to the City. Prior to making any changes to the occupancy schedule, written notification shall be submitted to the City that includes the intended changes.

5.92.1255 Facility restrictions.

The use of the shared use facility shall be restricted to the principal licensee 107
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28 and Operator Licensees authorized by the City to use the shared-use facility.

5.92.1260 Facility modifications.

The use of the shared use facility shall be restricted to the principal licensee and Operator Licensee(s) authorized by the City to use the shared-use facility.

5.92.1265 Cannabis waste.

Any cannabis product or other materials remaining after an Operator Licensee ceases operation and discontinues use of its designated area shall be considered cannabis waste and disposed of by the principal licensee consistent with the requirements of this Chapter.

5.92.1270 Product recalls or embargoes.

In the event of a recall or embargo of a cannabis product produced at a shared-use facility, the City, in its sole discretion, may include any or all cannabis products produced at the shared-use facility.

5.92.1275 Discontinuing operations.

A Principal Licensee that wishes to discontinue operation as a shared-use facility may do so by providing written notice to the City and each Operator Licensee authorized to use the shared-use facility at least thirty (30) calendar days prior to the effective date of the cancellation.

5.92.1280 Violations.

A Principal licensee or an Operator Licensee is liable for any violation found at the shared-use facility during that licensee's scheduled occupancy or within that licensee's designated area. However, a violation of any provision of the Chapter may be deemed a violation for which each Operator Licensee and the principal licensee are responsible. In the event of a recall or embargo of a cannabis product produced at a shared-use facility, the City, in its sole discretion, may include any or all cannabis products produced at the shared-use facility.

DIVISION VIII - DISTRIBUTION OPERATING CONDITIONS
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28 In addition to the general operating requirements set forth in Division Ill of this Chapter, this Division provides additional requirements for Distributors.

5.92.1310 Compliance.

A. A Distributor and the premises shall meet all health protection operating criteria for the distribution of cannabis goods as required by State law and regulations implemented and enforced by the Bureau of Cannabis Control.

B. Distributors shall transfer cannabis goods only between State licensees.

5.92.1315 Transport Only Distributor.

A. Transport Only Distributor may transport cannabis goods between State licensees if the transport, and the type of cannabis goods transported, is authorized by State and local law.

B. A Transport Only Distributor shall comply with all provisions required by this Code and State law for Distributors, except for those related to quality assurance and testing.

C. A Transport Only Distributor shall not hold title to any cannabis goods unless said Transport Only Distributor also holds a State issued Cultivation, Manufacturing, Retailer; or Microbusiness license.

D. Transport Only Distributors shall not be authorized to:

1. Engage in the delivery of cannabis goods to a
customer; or

2. Engage in the wholesale, destruction, packaging,
labeling, or storing of cannabis goods; or

3. Arrange for the testing of cannabis goods by a Testing Laboratory.

5.92.1320 Storage.

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28 A. Separate and distinct. Distributors shall ensure that each batch is stored separately and distinctly from every other batch on the Distributor's premises.

8. Labels required for batch storage containers. Distributors shall ensure a label with the following information is physically attached to each container of each batch: the Manufacturer or Cultivator's name and State license number; the date of entry into the Distributor's storage area; the unique identifiers and batch number associated with the batch; a description of the cannabis goods with enough detail to easily identify the batch; and the weight of or quantity of units in the batch.

C. A Distributor shall store cannabis goods in a building designed to permit control of temperature and humidity and shall prevent the entry of environmental contaminants such as smoke and dust. The area in which cannabis goods are stored shall be vermin proof and shall not be exposed to direct sunlight. Distributors shall not store cannabis goods outdoors.

D. Storage-only services. Distributors may provide cannabis or cannabis product storage-only services to a Cultivator, Manufacturer, or other Distributor, which are unrelated to the quality assurance and laboratory testing processes required of the Distributor.

5.92.1325 Quality assurance.

A. Distributors shall ensure compliance with any requirements for packaging and labeling cannabis goods pursuant to State and local law and regulations.

8. After taking physical possession of a cannabis batch, the Distributor shall meet all testing requirements and procedures as required by local and State law and regulations. Upon the request of the City Manager, the Distributor shall immediately make available the results of all tests performed on each cannabis batch by a certified State licensed ADS:ag A22-01316 (4-25-22)
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C. A Distributor shall only procure, sell, or transport cannabis goods that are packaged and sealed in tamper-evident packaging that use a unique identifier, such as a batch and lot number or bar code, to identify and track the cannabis goods.

5.92.1330 Transport.

A. Documentation during transport. Transporters shall carry a physical or electronic copy of the shipping manifest for the transport of cannabis goods, a copy of the Distributor's current permits and/or licenses required by the State and City, the Transporter's government-issued identification, and an identification badge provided by the Distributor. All documentation shall be made available upon request to the City Manager or Chief of Police.

B. Transporters shall be at least twenty-one (21) years of age and shall have a valid California Driver's License.

C. Vehicle standards. A Distributor shall only allow transport of cannabis goods in a vehicle:

1. That is capable of securing (locking) the cannabis
goods during transportation.

2. That is capable of being time and/or temperature
controlled if perishable cannabis goods are being transported.

3. That does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis transport or affiliated with a Commercial Cannabis Business.

D. Inspections. Any motor vehicle used by a Distributor to transport cannabis goods is subject to inspection by the City Manager or Chief of Police and may be stopped during transport, delivery, or pick-up of cannabis goods for inspection.

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A. Distributors shall maintain all weighing devices in good working order, approved, tested, sealed, and registered with the Los Angeles County Agricultural Commissioner/Weights and Measures in compliance Division 5 ("Weights and Measures") of the California Business and Professions Code, any applicable State laws and regulations implemented by the State or its departments or divisions, and all other applicable local, State, and Federal laws.

B. Distributors are prohibited from using scales, weights, or measures that do not accurately conform to the standard of weights and measures of the State and county.

5.92.1340 Records.

A. In addition to records generally required of all Adult-Use Cannabis Businesses, every Distributor shall maintain records specific to the operation, including but not limited to: records relating to branding, packaging and labeling; inventory logs and records; transportation bills of lading and shipping manifests for completed transports and for cannabis goods in transit; vehicle and trailer ownership records; quality-assurance records; records relating to destruction of cannabis goods; laboratory testing records; warehouse receipts; records relating to tax payments collected and paid. The Distributor shall make all records available to the City upon request.

B. Storage records. A Distributor shall maintain a written contract with other State licensees storing cannabis goods on the Distributor's premises. A Distributor shall maintain a separate storage inventory log for every State licensee storing cannabis goods on the Distributor's premises.

The Distributor's storage inventory logs and written contracts shall be provided to the City Manager upon request. All inventory documents shall ADS:ag A22-01316 (4-25-22)
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28 contain the identity and State license number of all contracting parties.

C. A Distributor shall maintain a database, and provide to the City upon request, a list of the individuals and vehicles authorized to conduct transportation on behalf of the Distributor.

DIVISION IX-TESTING LABORATORY OPERATING CONDITIONS
In addition to the general operating requirements set forth in Division Ill of this Chapter, this Division provides additional requirements for Testing Laboratories.

5.92.1410 Compliance.

All laboratory testing of cannabis goods shall be performed in accordance with this Chapter, this Code, and any applicable State law and regulations, implemented and enforced by the State and its divisions and departments.

5.92.1415 No other employment or interest.

No owner or employee of a Laboratory may be employed by, or have any ownership or financial interest, in any other type of commercial cannabis activity.

5.92.1420 Laboratory employee requirements.

Laboratory employees shall meet the experience, education, and training requirements specified and required by the State or any of its departments and divisions.

5.92.1425 Certificate of accreditation required.

Every Laboratory shall hold a valid certificate of ISO/IEC 17025 accreditation, issued by an accreditation body that attests to the Laboratory's competence to perform testing of the cannabis goods for compounds and contaminants, in compliance with State laws and regulations for cannabis testing.

Said accreditation body shall be a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement for testing. The ADS:ag A22-01316 (4-25-22)
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28 certificate of accreditation shall be kept at the premises.

5.92.1430 Standard operating procedures.

A Laboratory shall adopt a standard operating procedure using methods consistent with general requirements established by the International Organization for Standardization, specifically ISO/IEC 17025, to test cannabis goods, and shall operate in compliance with State law at all times.

5.92.1435 Chain of custody controls.

A Laboratory shall establish standard operating procedures that provide for adequate chain of custody controls for samples transferred to the Laboratory for testing.

5.92.1440 Certificate of Analysis.

A Laboratory shall generate a Certificate of Analysis (GOA) for all representative samples analyzed by the Laboratory in compliance with State law and any regulations implemented and enforced by the Bureau of Cannabis Control.

5.92.1445 Annual audit.

A Laboratory shall conduct an internal audit at least once per year or according to the ISO Accrediting Body and the State's requirements, whichever is more frequent.

5.92.1450 Transportation and storage of testing samples.

Every Laboratory shall ensure samples are transferred, transported, and securely stored in a manner that prevents degradation, contamination, and tampering, and in compliance with labeling on the cannabis product pursuant to a specified chain of custody protocol.

5.92.1455 Destruction of samples.

A Laboratory shall destroy the remains of samples of any cannabis goods upon completion of analyses, and after the expiration of any post-testing sample retention period, in compliance with State law and any regulations implemented ADS:ag A22-01316 (4-25-22)
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28 and enforced by the Bureau of Cannabis Control.

5.92.1460 Additional ventilation requirements.

In additional to the general odor control and ventilation requirements in Section 5.92.540, the Laboratory shall implement adequate ventilation or control equipment to minimize dust, odors, and vapors (including steam and noxious fumes) in areas where they may cause allergen cross-contact or contamination of cannabis products. Fans and other air-blowing equipment used at a Laboratory premises shall be used in a manner that minimizes the potential for allergen cross contact and contamination of cannabis goods.

5.92.1465 Hazardous material requirements.

Laboratories that use and generate hazardous materials or hazardous waste shall comply with all applicable hazardous material regulations for hazardous waste generators, and hazardous materials handling requirements and shall maintain any applicable permits for these programs from the Certified Unified Program Agency (CUPA) of Long Beach.

5.92.1470 Records.

A Laboratory shall ensure the transport, handling, storage, and destruction of samples are accurately documented. All documentation and the results of all testing shall be maintained as a part of the required records of the Laboratory.

DIVISION XI - ENFORCEMENT AND PENAL TIES

5.92.1510 Violations generally.

A. It is unlawful for any person to violate any provision, or to fail to comply with any of the conditions or requirements of this Chapter, or any regulation adopted pursuant to it.

B. Separate violation. Every day, during any portion of which, any violation of this Chapter is committed, continued, or allowed to continue 115
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28 is a separate offense and is subject to all remedies and enforcement measures authorized by this Code.

C. Every cannabis plant, including both immature and mature plants, cultivated in violation of this Chapter by an illegal cannabis operation constitutes a separate violation subject to the penalties of this Chapter.

D. Paying a fine or serving a jail sentence does not relieve any person from responsibility for correcting any condition that violates any provision of this Chapter.

E. Whenever in this Chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

F. Violation of any provision of this Chapter shall be considered a strict liability; accordingly, the City shall not be required to prove knowledge, criminal intent, or any other mental state to establish a violation of this Chapter.

5.92.1515 Remedies cumulative.

A. The remedies provided for in this Chapter are not mutually exclusive. Pursuit of any one remedy does not preclude the City from availing itself of any or all available administrative, civil, or criminal remedies, at law or equity. The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity.

B. This Chapter does not limit the City's additional remedies for recovering taxes or damages in accordance with any applicable law including, without limitation, cannabis business taxes owed by an unlawful Commercial Cannabis Business pursuant to Chapter 3.80 of this Code.

5.92.1520 Declaration of public nuisance.

A. Any violation of the provisions of this Chapter is hereby ADS:ag A22-01316 (4-25-22)
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28 deemed unlawful and a public nuisance.

B. As a nuisance per se, any violation of this Chapter is subject to any of the following remedies, including, without limitation: injunctive relief, revocation of applicable permits or licenses, revocation of the certificate of occupancy for the real property where the violation occurred, disgorgement and payment to the City of all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or equity.

C. For purposes of notification of nuisance and abatement pursuant to Section 9.37.100 of this Code, a reasonable time limit for a property owner or person to correct or abate the nuisance of an illegal cannabis operation is no less than five (5) calendar days.

5.92.1525 Liability of employees and agents.

Liability of employees and agents. In construing and enforcing the provisions of this Chapter, the act, omission, or failure of an agent, officer, representative, or other person acting for or employed by an Adult-Use Cannabis Business, within the scope of his or her employment or office, will be in every case be deemed the act, omission, or failure of the Adult-Use Cannabis Business.

5.92.1530 Liability of property owners.

A. No property owner in charge of, or in possession of, any real property within the City shall cause, permit, maintain, conduct, or otherwise suffer or allow a public nuisance as defined in this Chapter to exist.

B. It is the duty of every property owner, and person that controls any real property or interest therein, within the City to remove, abate, and prevent the reoccurrence of the public nuisance upon such real property.

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28 who illegally exists or creates a public nuisance upon the property owner's real property.

C. In addition to any abatement costs incurred by the City for closing or removing an illegal cannabis operation from private real property, failure of a property owner to voluntarily abate an illegal cannabis operation after notification by the City shall result in the penalties set forth in this Chapter.

5.92.1535 Liability of costs, fines, and fees.

A. Liability of costs. In any enforcement action brought pursuant to this Chapter, whether by administrative proceedings, judicial proceedings, or summary abatement, every person who causes, suffers, maintains, or permits any illegal cannabis operation and/or operation to exist, or remain in violation of this Chapter, is liable for all actual costs incurred by the City, including, but not limited to: all actual costs for inspection, enforcement, revocation, suspension, abatement, or any other actual costs incurred to undertake, or to cause or compel any responsible party to undertake, any abatement action in compliance with the requirements of this Chapter, including costs of litigation and reasonable attorney's fees, whether those costs are incurred prior to, during, or following enactment of this Chapter.

B. Any person may abate an illegal cannabis operation or cause it to be abated at any time prior to commencement of abatement by, or at the direction of, the City Manager. Abatement prior to the hearing does not absolve any person from paying costs, fees, and administrative penalties that accrued up to the date of abatement. Proof of Abatement shall be provided to the Hearing Officer(s) at the time of hearing.

C. Liability for cost of destruction. If required by State law, regulation, or court order to destroy any cannabis goods associated with a ADS:ag A22-01316 (4-25-22)
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D. Failure to pay fines and fees. Failure to pay a fine or penalty within thirty (30) calendar days of the date of assessment may result in penalties, suspension, or revocation of the permit, unless the citation is being appealed. The full amount of any assessed fine or penalty may be added to the fee for renewal of the permit.

5.92.1540 Permit suspension, revocation, or denials.

A. Noncompliance. Failure to comply with any of the provisions of this Chapter will constitute grounds for suspension, denial, or revocation of the permit. The noticing and hearing requirements for suspension or revocation of the permit shall be governed by the provisions of Chapter 5.06 of this Code.

B. Cease activity. No person may conduct any business or activity regulated by this Chapter while an application for a permit is pending, at any time after a permit denial or revocation, or while a permit is suspended.

C. Grounds for denial, revocation, or suspension of permit. In addition to the provisions of Chapter 5.06 of this Code, the Director of Financial Management may deny any application for a permit, or revoke or suspend any permit, on the following grounds:

1. A permit application does not satisfy the minimum
qualifications or fails to comply with the applicable requirements of this Chapter.

2. Failure to comply with any of the terms and conditions attached to the permit at the time of approval.

3. Any act or omission that violates the requirements of this Code, including any rule, regulation, condition, or standard adopted 119
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28 pursuant to this Chapter, or any other applicable State or local rule, law, or regulation.

4. Any act or omission that results in the denial,
revocation, or suspension of the permittee's State license.

5. Failure to renew the permittee's State license.

6. The permit was granted, in whole or in part, based on any written or oral misrepresentation or omission of a material statement in the permit application.

7. Conducting a commercial cannabis activity in a manner that constitutes a nuisance, where the permittee has failed to comply with reasonable conditions to abate the nuisance.

8. Conviction for any controlled substance felony by an owner after a permit has been issued.

9. A person has been, or is, prohibited from having an
ownership interest in an Adult-Use Cannabis Business pursuant to Section

5.92.265.

10. A person has committed a deliberate or willful violation of an applicable law, or applicable rule and regulation related to commercial cannabis activity.

5.92.1545 Appeal of permit denial.

A. Any applicant pursuant to this Chapter whose application for an Adult-Use Cannabis Business Permit, whose application for such permit has been denied, shall be notified in writing of the denial and their right to file an appeal, pursuant to Section 5.06.030 of this Code, within ten (10) calendar days after the date of mailing of the Notice of such denial.

B. Any written request for an appeal of a permit denial pursuant to this Chapter shall include details regarding the denial and the specific ground(s) on which the dispute of the denial is based. At the time of filing 120
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28 the notice of appeal, the applicant shall pay to the Director of Financial Management the fee set by resolution of the City Council for appeals hereunder.

C. If the written request is filed within the time period specified, within thirty (30) days following the filing of said written request, the City shall set a hearing to be held not less than ten (10) days nor not more than thirty (30) days thereafter, and such hearing may for good cause be continued by the City.

D. The hearing shall be held in accordance with Chapter 2.93 of this Code, except that the matter shall be automatically referred to the City Clerk for selection of a Hearing Officer, without the City Council's referral, in accordance with Subsection 2.93.050.B of this Code.

E. Failure to file the written request within the time period specified shall result in waiver of any right to dispute the denial of an application for an Adult-Use Cannabis Business Permit pursuant to this Chapter. Failure of an appellant or their authorized representative to appear at any noticed hearing shall constitute an abandonment of the hearing appeal and shall constitute a failure to exhaust administrative remedies.

F. Right to recover costs. In the event a civil action is initiated by the City to enforce any decision under this Section, and a judgment is entered to enforce said decision, any person against whom the order of enforcement has been entered shall be liable to pay the City's total costs of enforcement, including reasonable attorney fees.

5.92.1550 Factors for suspension or revocation.

A. The City Manager may consider the following factors in deciding whether a permit should be suspended or revoked in accordance with this Chapter, as applicable:

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28 under consideration.

2. Any corrective action taken by the permittee.

3. Prior violations at the permitted premises by the
permittee and the effectiveness of prior corrective action.

4. Previous sanctions imposed against the permittee.

5. The number and/or variety of current violations.

6. The likelihood of recurrence.

7. All circumstances surrounding the violation.

8. Whether the violation was willful.

9. Any actual or potential harm to the public.

10. The length of time the permit has been held by the
permittee.

11. Evidence of expungement proceedings under Penal
Code Section 1203.4.

12. Any other factor that makes the situation unique or the violation of greater concern, with respect to the permittee or the permitted premises.

5.92.1555 Permit reapplications.

A. Whenever an application for a permit is denied, no other application by such permittee will be considered for a period of one (1) year from the date of the denial of an application, with an exception granted to any applicant whose Adult-Use Business License Application was denied solely because the applicant's proposed premises does not comply with the sensitive use buffers in subsection (1) through (4) of Section 5.92.420.A.

B. Whenever a permit has been revoked, no other similar application by such permittee for an Adult-Use Cannabis Business Permit shall be considered for a period of five (5) years from either the date the notice of the permit revocation was mailed or the date of the final decision ADS:ag A22-01316 (4-25-22)
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28 of the City Council to revoke the permit, whichever is later.

C. The provisions of subsections (A) and (B), above, apply to all of the following:

1. Any individual whose permit was revoked or whose
application was denied who later becomes a director or officer of a corporation, profit or nonprofit, or a member of a partnership or a person owning or possessing any portion of the shares of a corporation seeking to obtain a new permit.

2. A corporation, profit or nonprofit, whose permit was revoked or application was denied, to any of its directors or officers or to any person who owned any portion of its shares, who attempts by way of a new corporation or using their individual names or becoming a member of a partnership or a director or officer or a person owning or possessing any portion of the shares in another corporation seeking to obtain a new permit.

D. Effect of suspension, revocation, or denial on Co-Located Cannabis Business Permits.

1. Suspension of a permittee's co-located Adult-Use
Cannabis Business Permit or Medical Marijuana Business Permit, shall immediately suspend the permittee's other co-located permit for the same premises and permittee's ability to operate a Commercial Cannabis Business within the City, until the City reinstates or reissues permittee's Adult-Use Cannabis Business Permit and Medical Marijuana Business Permit.

2. Revocation or termination of a permittee's co-located Adult-Use Cannabis Business Permit or Medical Marijuana Business Permit, shall also immediately revoke, terminate, or surrender permittee's co-located permit for the same premises, and permittee's ability to operate a Commercial Cannabis Business from that premises.

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28 3. Surrender of the permittee's co-located Medical
Marijuana Dispensary permit shall also immediately revoke, terminate, or surrender the permittee's co-located Adult-Use Cannabis Dispensary Permit for the same premises, and permittee's ability to operate a Commercial Cannabis Business from that premises.

E. Effect of suspension, revocation, or denial on State licenses.

1. Suspension of a permittee's State license shall
immediately suspend the permittee's Adult-Use Cannabis Business Permit, any co-located Medical Marijuana Business Permits for the same premises, and permittee's ability to operate a Commercial Cannabis Business within the City, until the State, or its respective department or division, reinstates or reissues permittee's State license.

2. Revocation, termination, or surrender of a permittee's State license shall immediately suspend the permittee's Adult-Use Cannabis Business Permit, any co-located Medical Marijuana Business Permits for the same premises, and permittee's ability to operate a Commercial Cannabis Business within the City.

5.92.1560 Criminal penalty.

Any person who violates any provision of this Chapter is guilty of a misdemeanor, and upon conviction thereof, may be punished by a fine of not more than one thousand dollars ($1,000.00), or by imprisonment in the City or county jail for a period not exceeding six (6) months, or by both such fine and imprisonment.

5.92.1565 Administrative civil penalties.

A. Administrative citations. In addition to all other legal remedies at law, violations of this Chapter and building, health, and safety violations caused as a result of a violation of this Chapter are enforceable using the administrative citation procedures set forth in Chapter 9.65 of this Code.

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1. Administrative citations for violations of this Chapter 124
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28 shall be set by resolution of the City Council pursuant to Chapter 9.65 of this Code for any violation of the Long Beach Municipal Code that could potentially be criminally cited as an infraction.

2. Fines for illegal cannabis operations shall be set by resolution of the City Council pursuant to Chapter 9.65 of this Code.

B. Administrative penalties imposed pursuant to this Section also constitute a personal obligation on each person who causes, permits, maintains, conducts, or otherwise suffers or allows the nuisance to exist. In the event administrative penalties are imposed pursuant to this Section on two (2) or more persons for the same violation, all such persons are jointly and severally liable for the full amount of the penalties imposed.

C. In addition to any other remedy, the City may prosecute a civil action through the City Attorney to collect any administrative penalty imposed pursuant to this Chapter.

5.92.1570 Actions for injunctive relief and civil penalties.

A. As an alternative, or in addition to any other remedy, the City Attorney may enforce the provisions of this Chapter against any illegal cannabis operation and/or property owner in any court of competent jurisdiction. The City Attorney may apply to such court for an order seeking injunctive relief to abate or remove any nuisance caused, maintained, or permitted by an illegal cannabis operation and/or property owner, to restrain any illegal cannabis operation and/or property owner from taking any action contrary to the provisions of this Chapter or other applicable law; and/or to require any illegal cannabis operation and/or property owner to take any action to comply with this Chapter or other applicable law.

B. In any civil court action brought by the City Attorney pursuant to this Section in which the City succeeds in obtaining an order from the court, the City shall be entitled to recover from an illegal cannabis operation ADS:ag A22-01316 (4-25-22)
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28 and/or property owner all of the City's costs of investigation, enforcement, abatement, destruction, and litigation, including but not limited to attorneys' fees.

C. Civil penalties.

1. The City is entitled to recover civil penalties against an illegal cannabis operation and/or property owner a maximum amount of five thousand dollars ($5,000.00) per violation for each day an illegal cannabis operation is operated, permitted, or maintained on the subject property, and the court may order the destruction of cannabis associated with that violation in accordance with California Health and Safety Code Section 11479.

2. In assessing the amount of a civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including, but not limited to, the following:
a. The nature and seriousness of the violation;
b. Any economic benefit gained through the
violation;
c. The number of violations;
d. The length of time over which the violation
occurred;
e. The willfulness of the defendant's violation; and
f. The defendant's assets, liabilities, and net worth.

D. The City Attorney is authorized, without further direction from the City Council, to institute any civil actions permitted pursuant to this Section.

5.92.1575 Liens and special assessments.

A. Notwithstanding any other provision of this Chapter to the contrary, the costs incurred by the City in the abatement of a violation or 126
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28 nuisance may be placed against any privately owned and affected property as either a nuisance abatement lien or a special assessment lien pursuant to California Government Code Section 38771 et seq., as amended from time-to-time, or a lien pursuant to California Government Code Section 54988, as amended from time to time.

B. Liens. All actual costs required by this Section constitute a lien upon the property upon which the Adult-Use Cannabis Business is situated.

The lien for any inspection, enforcement, or abatement costs may attach thirty (30) days after the responsible parties are notified of the costs, and will remain until the costs are paid or the premises is sold in payment thereof.

C. Lien enforcement. The City may enforce a lien under this Chapter in any manner permitted by law, including filing a civil action either to foreclose on its liens or to obtain a money judgment or both, or pursuing non-judicial foreclosure.

D. Conversion of liens. The City may elect, upon thirty (30) calendar days written notice to all known and record owners of the privately owned and affected property, to convert any nuisance abatement lien authorized by this Chapter to a special assessment lien, or vice versa.

Costs recoverable under this Chapter may include those categories of costs and fees set forth in Civil Code Section 3496, regardless of the type of nuisance involved.

E. Special Assessment. If the property is specially assessed, said assessment may be collected at the same time and in the same manner as ordinary real property taxes are collected and will be subject to the same penalties and the same procedure and sale in case of delinquency as provided for ordinary real property taxes. All laws applicable to the levy, collection, and enforcement of real property taxes are applicable ADS:ag A22-01316 (4-25-22)
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5.92.1580 Prohibited premises sites due to prior illegal cannabis operations.

A. The City may, in its sole discretion, take any action as specified in this subsection.

B. If the City discovers an illegal cannabis operation is currently and/or was operating within the previous sixty (60) days at or on a property, or any portion thereof, without valid State or City permits or licenses the City may take action as specified herein. The City shall notify the property owner in writing of their right to file, within fifteen (15) days after the date of mailing of the Notice, written request of a hearing to the City disputing the alleged illegal cannabis operation. Such written request shall set forth the specific ground(s) on which the dispute is based and the property owner shall pay to the City at the time of filing said written request a filing fee in an amount to be set by resolution of the City Council.

C. Failure to file the written request within the time period specified shall result in waiver of any right to dispute the allegation of operation of an illegal cannabis operation at the subject property. In the event of such waiver, no Commercial Cannabis Business, whether licensed or non-licensed, shall be permitted to operate at the subject property for a period of one (1) year from the 16th day after the date of mailing of the Notice.

D. The illegal cannabis operation and/or property owner shall have the right of appeal as set forth in Section 5.92.1445.

E. Whenever it has been determined that an illegal cannabis operation was and/or is in operation, no Commercial Cannabis Business, whether licensed or non-licensed, shall be permitted to operate at the subject property for a period of one (1) year from the effective date of such determination.

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28 F. The prohibitions contained in this Section are sufficient grounds to deny any application for operation of a Commercial Cannabis Business or cannabis operation at the subject property received within the one (1) year time.

G. In the event the City revokes a Property Owner's Non- Residential Rental Business License for violating this Chapter, no Commercial Cannabis Business or cannabis operation, whether licensed or non-licensed, is permitted to operate at the subject property for a period of five (5) years from the effective date of revocation of the Non-Residential Rental Business License. Such revocation is sufficient grounds to deny any application for operation of a Commercial Cannabis Business or cannabis operation at the subject property received within the five (5) year period.

This prohibition shall also remain in effect in the event a property owner (or an entity owned by or affiliated with such property owner) obtains another Non-Residential Rental Business License anytime within the five (5) year period for the subject property.

5.92.1585 Disconnection of utilities.

A. To the maximum extent permitted by law, and in accordance with the processes thereof, the City may discontinue utility services to any premises upon which an illegal cannabis operation is operating.

B. Prior to the disconnection of utility services, the City must notify, wherever possible, the property owner and occupant of the building, structure, or premises upon which the illegal cannabis operation is operating, of the decision to disconnect the utility service(s) and the reason(s) for service suspension at least seven (7) calendar days before taking such action, unless a different period of notification is mandated by law; provided that the City's Building Official may dispense with any attempt at prior notification if, in the sole discretion of the Building Official, the ADS:ag A22-01316 (4-25-22)
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C. In the event utilities are disconnected, the Building Official must notify the owner or occupant of the building, structure, or premises in writing of the disconnection as soon as practical thereafter.

D. Disconnected utilities shall not be re-established until an inspection has been made by the City's Building Official and the Building Official has determined that the unlawful illegal cannabis operation has ceased operations; that any imminent hazard has been abated or eliminated (if applicable); that the building complies with applicable law; and that any applicable fees for disconnection, reconnection, penalties, and/or other related services have been paid.

E. Removing or defacing a notice posted in relation to this provision shall constitute a separate and distinct violation of this Chapter.

5.92.1590 Medical Marijuana Task Force.

The authority, powers, and duties of the Medical Marijuana Task Force, established pursuant to Section 5.90.260 of this Code, are limited exclusively to the provisions in Chapter 5.90 and shall not extend to any applicant, permittee, Adult-Use Cannabis Business, and/or Medical Marijuana Business electing to engage in commercial cannabis activity pursuant to this Chapter.

5.92.1595 Severability.

In the event, any provision in this Chapter is deemed invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision is ineffective only to the extent of such invalidity, illegality, or unenforceability.

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DIVISION XII - EQUITY PROGRAM
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28 5.92.1610 Equity employee eligibility
A. To be eligible for the Equity Program as an equity employee, an individual shall satisfy the following criteria:

1. Be a natural person; and

3. The individual satisfies at least one of the following criteria:
a. Has lived in a Long Beach census tract for a
minimum of three (3) years where at least fifty-one percent (51 % ) of current residents have a household income at or below eighty percent (80%) of the Los Angeles County Area Median Income; or
b. Was arrested or convicted for a crime relating to
the sale, possession, use, or cultivation of cannabis in the City of Long Beach prior to November 8, 2016 that could have been prosecuted as a misdemeanor or citation under current California law; or c. Is a Long Beach resident currently receiving
unemployment benefits.

5.92.1615 Equity applicant eligibility.

A. To be eligible for the Equity Program as an equity applicant, an individual shall satisfy the following criteria:

1. Be a natural person; and

2. In the last year, have had an annual family income at or below eighty percent (80%) Los Angeles - Long Beach - Glendale (Los Angeles County) Area Median Income (AMI) adjusted for family size, and a net worth below $250,000; and
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28 3. Has lived in a Long Beach census tract for a minimum of five (5) years, either consecutively or in total, where at least fifty-one percent (51%) of current residents have a household income at or below eighty percent (80%) of the Los Angeles County Area Median Income; and

4. Meets at least one of the following criteria:
a. During the period 1971-2016, was arrested for,
convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of cannabis; or b. Has a parent, sibling, or child who, during the
period of 1971-2016, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of cannabis.

5.92.1620 Equity business eligibility.

To be eligible for the Equity Program as an Equity Business, majority ownership of the business must be held by equity applicant(s). If the cannabis business has one equity applicant listed as an owner, a minimum of fifty-one percent (51%) ownership in the cannabis business must be held by the equity applicant. If the cannabis business will have multiple equity applicants listed as owners of the cannabis business, any one (1) of the equity applicants must hold majority ownership interest in the cannabis business.

5.92.1625 Application required.

A. Any person seeking to be qualified as a Verified Equity Applicant or Verified Equity Employee shall submit a written application to the City, signed under penalty of perjury, using the form approved by the City for that purpose and in the manner required by the Director of Economic Development. All applications shall contain, at a minimum, the ADS:ag A22-01316 (4-25-22)
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28 following information and documents:

1. Applicant Information
a. The legal name of the applicant.
b. The applicant's mailing address, e-mail address,
and telephone number.

2. Proof of income
a. All income documents must list the first and last
name of the equity applicant and be effective within the last year. b. A minimum of last year's federal tax return and
at least one (1) of the following approved documents listed below shall be considered acceptable proof of residency:
(i) Wage and tax statement (W-2, 1099, or
other Federal income reporting document)
(ii) Two (2) months of most recent pay stubs,
or
(iii) Proof of current eligibility for General
Relief (GR), CalFresh (Food Stamps), Medical/CalWORKs, Supplemental Security Income (SSI), or Social Security Disability (SSDI).

3. Proof of Residency
a. A minimum of two (2) of the supporting
documents listed below, evidencing a minimum of five (5) years of residency, whether consecutive or in total, shall be considered acceptable proof of residency. All residency documents must list the first and last name of the equity applicant and the Long Beach residence address in a qualifying Long Beach census tract pursuant to Section 5.92.1620.A.3:
(i) California Driver's record or permanent
Driver's License or AB 60 Driver's License; or
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(ii) California identification card record; or
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28 (iii) Property tax billing and payments from
the LA County Assessor; or
(iv) Verified copies of State or Federal
income tax returns where a Long Beach address within a qualifying Long Beach census tracts pursuant to Section 5.92.1620.A.3 is listed as a primary address; or
(v) School records; or
(vi) Medical records; or
(vii) Banking records; or
(viii) Long Beach Housing Authority records; or
(ix) Utility, cable, or internet company billing
and payment covering any month in each of the five (5) years.

4. Proof of Cannabis Criminalization
a. Proof of cannabis arrest or conviction should be
demonstrated through court documents, probation documents, Department of Corrections or Federal Bureau of Prisons documentation. Documentation needs to include the following:
(i) Date of the offense or arrest
(ii) Charges filed
(iii) Name of defendant
(iv) Exact location of offense or arrest that
occurred in Long Beach, CA.

5.92.1630 Incomplete applications.

A. Upon review of an application, if an application is determined to be incomplete, the City shall provide notice to the applicant, who shall have ninety (90) calendar days to correct all deficiencies in the application.

B. If the applicant fails to correct said deficiencies within the ninety (90) day period, the application shall be deemed abandoned, void, 134
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28 and of no further force and effect. The applicant may reapply at any time following an abandoned application.

C. The Director of Economic Development may extend the
deadline upon showing of good cause by the applicant for the inability to provide all required information by the deadline, if a written request for an extension is received no later than ten (10) calendar days prior to the deadline. For purposes of this subsection, the term "good cause" shall mean the applicant's failure to complete the application process occurred due to circumstances outside of the applicant's control.

5.92.1635 Application rejection.

Upon review of an application, if an application is determined to not meet the criteria to be verified as an equity applicant or equity employee, the City shall have the right to reject said application. All rejections are final and may not be appealed. An equity applicant may reapply at any time after having an application rejected.

5.92.1640 Assistance available to equity applicants.

A sole equity applicant that intends to apply for an Adult-Use Cannabis Business Permit as an equity business, shall be eligible to receive direct technical assistance prior to the application process to acquire the knowledge and/or skills necessary in order to gain entry to, and to successfully operate in, the regulated cannabis marketplace. Direct technical assistance includes:

A. One-on-one consulting and training, including direct interactions in group settings, to provide equity applicants and licensees the technical knowledge and expertise necessary to facilitate business ownership and employment in the cannabis industry.

B. Small business support services, professional mentorship services, training and education regarding state cannabis licensing and regulatory requirements, manufacturing assistance, financial management, ADS:ag A22-01316 (4-25-22)
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28 and business resilience such as emergency preparedness.

5.92.1645 Assistance available to equity businesses.

A sole equity applicant or group of equity applicants applying for an Adult Use Cannabis Business Permit as an equity business, shall be eligible to receive the following assistance during the application process: expedited Adult-Use Cannabis Business Permit application review; Adult-Use Cannabis Business Permit application and compliance assistance; cultivation business license tax deferrals during the first year; expedited building plan check review; waivers of City permitting fees; and direct grants as provided by the State of California.

5.92.1650 Assistance per household.

Assistance as part of the Equity Program will only be provided to one (1) verified equity applicant per household. Assistance will not be provided to multiple equity applicants living within the same household and/or the equity applicant is listed as a dependent on another equity applicants tax filings.

5.92.1655 Equity business transfer of ownership requirements.

Equity Businesses are prohibited from transferring majority ownership interest to a non-equity applicant, for ten years after the issuance of the Adult-Use Cannabis Business License for that cannabis business. Exceptions may be granted by the City Manager, or their designee, for an extenuating circumstance preventing an equity applicant(s) from continuing to hold ownership in the Cannabis Business.

5.92.1660 Requirements for all Adult-Use Cannabis Businesses.

Adult-Use Cannabis Businesses that do not qualify for the Equity Program shall comply with the following requirements:

A. Employment.

1. Adult-Use Cannabis Businesses that do not qualify for the Equity Program shall employ equity employees for a minimum of forty percent (40%) of total annual work hours performed at the business. Upon 136
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28 a showing of good cause by an Adult-Use Cannabis Business, the City Manager may waive the employment requirement.

2. Compliance. To ensure compliance with this
requirement, Adult-Use Cannabis Businesses shall submit certified payroll records to the City Manager at such frequency as determined by the City Manager. Adult-Use Cannabis Businesses that fail to meet this requirement may be subject to penalties pursuant to this Chapter, including but not limited to, suspension or revocation of the Adult-Use Cannabis Business Permit pursuant to Section 5.92.1540. To avoid penalties for noncompliance, a business may demonstrate that it utilized its best efforts to hire and employ individuals that meet the criteria in Section 5.92.1620.A by detailing all efforts made and affixing documents to support such efforts.

B. Support for equity businesses. Adult-Use Cannabis Business shall submit a Community Reinvestment and Small Business Incubation Plan to the City describing how they intend to support equity businesses, adjacent neighborhoods, and communities within the eligible social equity program census tracts. Support for equity businesses may include, but shall not be limited to, business plan guidance at the time of application, business operations consulting, and industry specific technical assistance, shelf space for cannabis goods cultivated or manufactured by equity businesses, or any other form of support by an Adult-Use Cannabis Business consistent with the intent and spirit of this Division.

C. Labor peace agreement. Any Adult-Use Cannabis Business with two (2) or more employees (as defined by California Business and Professions Code 26051.5(a)(5)) shall provide a statement at the time of application that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement.

5.92.1665 Authority to develop and implement Equity Program.

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28 The City Manager is authorized to make reasonable rules, policies, and procedures consistent with the intent and spirit of this Division to develop and implement and administrative program for this Equity Program. Regulations promulgated by the City Manager become effective upon date of publication, unless specified otherwise.

Section 5. The City Clerk shall certify to the passage of this ordinance by the City Council and cause it to be posted in three (3) conspicuous places in the City of Long Beach, and it shall take effect on the thirty-first (31st) day after it is approved by the Mayor.

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1 I hereby certify that the foregoing ordinance was adopted by the City 2 Council of the City of Long Beach at its meeting of May 24 , 2022, 3 by the following vote:
4 5 Ayes: Councilmembers: Zendejas, Price, Supernaw,
6 Uranga, Austin.
7 8
9 Noes: Councilmembers: None.
10 11 Absent: Councilmembers: Allen, Mungo, Saro, Richardson. >- >. 0 12 w <ll 0
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18 19 Approved:
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AFFIDAVIT OF POSTING
STATE OF CALIFORNIA ) ss

COUNTY OF LOS ANGELES )

CITY OF LONG BEACH )
Tamela Austin being duly sworn says: That I am employed in the Office of the City Clerk of the City of Long Beach; that on the 25th day of May, 2022, I posted three true and correct copies of ORD-22-0015 in three conspicuous places in the City of Long Beach, to wit: One of said copies in the lobby of Civic Chambers; one of said copies in the Main Library; and one of said copies on the front counter of the Office of the City Clerk.

Subscribed and sworn to before me
This 25th day of May 2022.

Long Beach City CouncilJune 6, 2023

Long Beach City Council
June 6, 2023