Agenda — Lynwood City Council, November 15, 2022 (part 2 of 2)

Lynwood Cannabis Application Procedure

APPLICATION PROCEDURE TO OPERATE A

RETAIL CANNABIS BUSINESS IN LYNWOOD
in compliance with the Lynwood Cannabis Retail Sales
Regulation and Public Safety Ordinance No. 1751

The application process to operate a Retail Cannabis Busi ness (“RCB”) in Lynwood will open on _______, _____, 2022.

Applications are to be submitted to City Clerk Office in City Hall for time/date stamp and all 5 application copies in a sealed container and clearly labeled “Retail Cannabis Bu siness Application submittal” with Name of Applicant (individual or entity). Additionally, a complete digital copy of the application on a portable USB drive must be included.

No applications will be accept ed after 5 pm. _________, 20__. Applications are available at the Department of Development, Compliance and Enforcement Services) located at City Hall. This outlines the application process, required materials, and other information necessary to operate a RCB in Lynwood. This application process is adopted pursuant to Lynwood Municipal Code Section 4-35.

A Q & A session will be held at ________________ on _______________at __________ for all interested parties.

BEFORE YOU APPLY:

¾ Review the information to learn about the application process and which documents you will need. ¾ Review the application in its entirety to ensure that it is complete and accurate. ¾ Review the information regarding the retail cannabis business permit application on the webpage: www.lynwood.ca.us which includes the following information:
• Local regulations governing Lynwood RCB’s: Lynwood Municipal Code (“LMC”) Chapters 4-34 and 4-35
• Background authorization form and/or Live Scan
• Zoning Code Verification Certificate
• Local Zoning Map
The applicant hereby understands and acknowledges that all requirements set forth in Ordinance 1751 must be satisfied to be considered a complete application. The applic ant hereby understands and ackn owledges that incomplete applications will not be processed nor considered by the City for approval. Following submittal of an application for review and consideration, application fees will not be returned to applicant under any circumstances.

Application Process: Evaluation and Ranking: The selection process shall consist of the following three Phases:

Phase I

Fee: $16,050 Payment must be made by a certified check, cashier’s check or money order made payable to the City of Lynwood. Please note the City will not accept cash and Application Fees are non-refundable.

Please note: Background check fees ($360) and Live Scan fees ($148) are separate City fees and will be charged in addition to the Phase I fee for each Principal and managers.

x Application Submission, Documents Review, and Initial Ranking

Applicants must hand deliver five (5) complete comprehensi ve and signed copies of the Lynwood Commercial Retail Cannabis Business Permit Application, and all required attachments, along with a flash drive which contains one comprehensive and signed copy of the application in a pdf format. A complete application will consist of the following information:

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Lynwood Cannabis Application Procedure
a. The Lynwood Commercial Retail Cannabis Business Permit Application and all required attachments; b. Background Authorization Form and/or Proof of Live Scan payment for each of the principals; c. Zoning Verification Letter; and
d. All the information about the RCB to be eval uated in Phase 1 which is described in the Application, Evaluation and Selection Process section below in this procedure. The only information that can be submitted after the initial application is proof of property ownership or lease agreement. However, any change in location will require a new “Zoning Verification Letter” and must be submitted with the application package prior to Phase 2 of the selection process. Please note that should you choose to submit a different location prior to Phase 3 you can only do so if your initial proposed site was approved as part of your original application package.

(Up to the top 12 applicants approved based on criteria under Subsection 4-35.7 c. and d. of Ordinance will be eligible to move to Phase II).

Phase II
Fee: $5,144 Payment must be made by a certified check, cashier’s check or money order made payable to the City of Lynwood. Please note the City will not accept cash and Application Fees are non-refundable.

x City Manager Review and Interview by ad hoc committee x City Manager’s Final Recommendation to City Council
(Up to 8 applicants approved based on criteria under Subsection 4-35.7 e. of Ordinance will be eligible to move to Phase III).

Phase III
Fee: $4,094 Payment must be made by a certified check, cashier’s check or money order made payable to the City of Lynwood. Please note the City will not accept cash and Application Fees are non-refundable.

x Applicant presentation to City Council for final consideration (Up to 6 applicants may be issued retail cannabis business permits as authorized in Section 4-35.5 a.)

INCOMPLETE APPLICATIONS WILL NOT BE CONSIDERED.

Amendments to the Application: Applicants will not be allowed to make amendments to their application or to supplement their application, except as otherwise specifically permitted in these procedures or authorized in writing by the City. Prior to Phase II, applicants will be notified if any of the Principals/Landlord(s) are ineligible and/or if their application is incomplete and will not move forward in the application process. However, in some cases the City may move forward in the application process to other phases should anticipate that the Live Sc an or background check may be delayed to expedite the application process in a timely manner. In this case Applicants wishing to move forward in the process acknowledge by signing the application that they agree to these terms, and should they be disqualified because of a background or a Live Scan disqualification they will not be eligible for a refund of any fees collected resulting from the modification of this procedure.

Payment of Application Fees: The individual designated as the RCB contact on the application will be notified by e- mail as to whether the application is advancing to Phase 2. A payment of $5,144 will be due before Phase II. As part of Phase III, all eligible Applicants as determined by the Ordinance or by resolution will be presented to City Council and must pay a fee of $4,094 to move forward for final consideration. Deadlines for these payments will be included in the e-mail notification to the primary contact person.

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Lynwood Cannabis Application Procedure
EVALUATION AND SELECTION PROCESS:

The evaluation and selection process shall consist of the following three phases:

x Phase 1: Determination of Eligibility, Documents Review, and Initial Ranking

Applications must be complete to be considered. Applications will be considered complete only if they include all information required for Phases 1 evaluation.

Initial Ranking for Eligibility
Applications will be evaluated based on the following criteria: (Items 8-15 will be used for scoring criteria)

1. Payment of non-refundable application fee $16,050.00 (4-35.7 c. 1.) Date Rec’d: ___________

2. Sufficient evidence of legal right to use pr oposed property for proposed use (4-35.7 c. 2.)

3. Sufficient evidence that proposed property compli es with location/zoning requirement (4-35.7 c. 3.)

4. Proof of funds ($1,000,000) liquid assets (4-35.7 c. 4.)

5. Set of plans (site development; floor plan; building elev ations (all 4 sides); conceptual landscape (4-35.7c. 5.)

6. Set of colored interior and elevation renderings (4-35.7 c. 6.)

7. Copy of complete background check application an d receipt for each owner and manager (4-35.7 c. 7.)

8. Qualifications of the Applicant’s owner and managers (4.35.8 d. 1.)

9. Plans, renderings, and overall location (4.35.8 d. 2.)

10. Business and operations plan (4.35.8 d. 3.)

11. Security plan (4.35.8 d. 4.)

12. Safety plan (4.35.8 d. 5.)

13. Neighborhood compatibility plan (4.35.8 d. 6.)

14. Community benefits plan (4.35.8 d. 7.)

15. Labor and Employment plan (4.35.8 d. 8.)

Criminal History Check: As part of Phase 1 of the Application Process, every person applying to be a principal (and Landlord, if applicable) to operate a RCB (“Principal”) must complete a criminal background check as determined by the City of Manager and also be subject to a Live Scan review for both the state and federal clearance. Due to delays, which may occur in processing the Live Scan each principal may be subject to a provisional background check at which time they will be required to sign a background authorization allowing the City to conduct a third-party criminal investigation check. The background check fee shall be $360, and a Live Scan Fee will be $148. Fingerprinting services are available at most police departments, sheriff’s offices, or any public applicant Live Scan Sites. The application for the Live Scan will be available on the City website or available at the Development, Compliance & Enforcement Services office or at the City Clerk’s office in City Hall. Please provide proof of completing your background authorization form and Live Scan form by providing copies with your application. This process will be required to meet the minimum threshold qualifications pursuant to LMC Section 4-35. Principals/Landlords who do not meet criminal history eligibility requirements will be disqualified.

Proposed Location of Business: Applicants will be required to obtain a “Zoning Verification Letter” from the Building, Safety, and Planning Department in City Hall, located at 11330 Bullis Road in Lynwood to ensure that the location proposal the applicant is applying for meets locational requirements prior to submitting their RCB application.

The review process typically takes approximately ten (10) wo rking days and will cost $282. The “Zoning Verification Letter” will need to be included with the application package. Please note the issuance of a “Zoning Verification Letter” does not mean the written evidence of permission given by the City of Lynwood or any of its officials to operate a RCB, nor does it not mean “permit” within the meaning of the Permit Streamlining Act, nor does it constitute an entitlement under the Zoning or Building Code. A regulatory permit for regulating a RCB does not constitute a permit that runs with the land on which the RCB is established. Request for Zoning Verification Letters require a written request from the Building, Safety, and Planning Department and will not be completed over the counter since it may require additional research and review.

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Lynwood Cannabis Application Procedure

x Phase II: Second Ranking

o Selected applicants will be evaluated on the following information:
¾ Payment of non-refundable application fee $5,144.00. (4-35.7) ¾ Selected applicants will be interviewed and evaluated by the Selection Committee per Section 4-35.7.
¾ The City reserves the right to request an d obtain additional information from any candidate who submitted a proposal. Upon the completion of the final review process, the Selection Committee will determine which Applicants will proceed to Phase III.

x Phase III: City Manager’s Recommendations and
City Council’s Final Approval

o Selected applicants will be evaluated on the following information:
¾ Payment of non-refundable application fee $4,094.00. (4-35.7)

¾ The City Manager will present to the City Council the final ranking along with his/her recommendation in which the City Council may award up to the amount permitted by the Ordinance or Council Resolution pursuant to LMC Section 4-35.5 a. The City Council reserves the right to award a lesser number of permits, or to award no permits at all. Only those applicants on the final list will be eligible to be issued a permit from the initial permit process.

The top Applicants which are being recommended by the City Manager for consideration to the City Council should be prepared to attend a City Council meeting in Lynwood to provide a public presentation before the Mayor and City Council describing each of their retail cannabis business permit applications an d addressing the objective review criteria and quantitative evaluation scale in subsection d.

¾ City Council Selects Final Awardees.

Please note that being awarded a RCB does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for all construction including electrical, plumbing, fire, planning permits or reviews, and any other permits, licenses, or reviews as may be necessary by the relevant departments or governmental entities in charge of said pe rmits. Nor does it guarantee that the plans submitted via the application process meet the standards or requirements in Chapter 25 or any other permit requirement from other city departments or agencies. All permit awardees will still be required comply with all proposed construction or occupation requirements and building/planning permits for their facility.

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Lynwood Cannabis Application Procedure

DESCRIPTION OF EVALUATION CRITERIA: These may exceed the minimum City requirements and are for scoring purposes. Applicant must be knowledgeable about the minimum basic requirements for City Retail Business License.

TOTAL CRITERIA VALUE OF 1,000 POINTS

1. Qualifications of the Applicant’s Owners and Managers – 200 points

The City Council finds that a proven track-record of (i) business operations providing services or operating in the City or (ii) cannabis retailer operations experience, wherever performed, that successfully generate tax revenue carries out the purpose and intent of the Ordinance and ar e, therefore, critical for an applicant to demonstrate the qualifications of the Applicant’s Owners and Managers. Accordingly, 150 of the 200 points awardable under this Subsection 1 shall only be awarded, as a ministerial duty, (i) if an owner or owners of the Applicant with an aggregate ownership interest of fifty-one (51) percent or more is currently at the time of application submission under this Section and since at least February 1, 2020, the President, CEO, or limited liability company manager of a business that provides (or has provided) services or operates (or has operated) in the City and that has generated at least $ 8,000,000.00 in annual gross rece ipts as demonstrated by the most recent tax payment receipts from, tax filings to, or tax returns filed by the business with a city, county, state, of the federal government or by a letter from a certified public accountant attesting to the business’s gross receipts or (ii) if an owner or owners of the Applicant with an aggregate ownership interest of fifty-one (51) percent, is currently at the time of application submission under this Section an owner or owners with an aggregate ownership interest of fifty-one (51) percent of (or is an owner as a result of being the chief executive officer of a no nprofit entity of) a single licensed and lawfully operating commercial cannabis retailer operation (excluding any non-retailer microbusiness, cultivation, manufact uring, distribution, or other non-retailer commercial cannabis operation components) that has generated at least $ 5,000,000.00 in gross receipts in a consec utive six-month period in the year immediately preceding the date of the applicatio n submission under this Sect ion, as demonstrated by tax payment receipts from, tax filings to, or tax returns filed with a city, county, or state or by a letter from a certified public accountant attesting to the cannabis retailer’s gross receipts.

The remaining 50 of the 200 points awardable under this Subsection 1 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a. Up to 50 points – A description of the Applicant’s owner(s) and manager(s) qualifications detailing any experience operating cannabis reta ilers in any jurisdiction where ca nnabis retailers are permitted or special business or professional qualifications or licenses of the applicant’s owner(s) and manager(s) that would add to the quality of services that the cannabis retailer would provide, including in areas related to cannabis, such as legal, finance, business ownershi p/ administration, waste management, real estate development, scientific, or healthcare or wellness fields.

2. Plans, renderings, and overall location – 150 points

75 of the 150 points awardable under this Subsection 2 shall only be awarded, as a ministerial duty, if an Applicant’s proposed cannabis retailer is located on property located more than one -thousand five hundred (1,500) feet from any youth centers identified and measured pursuant to Section 4-35.6above and Section 14 of the Ordinance.

The remaining 75 of the 150 points awardable under this Subsection 2 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a) Up to 10 points – A premise diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code of Regulations.

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b) Up to 10 points – A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in Chapter 25 of the City Municipal Code, including adequate parking. Information on existing conditions shall include:

1. Exterior photographs showing all sides of any existing

2. structure(s);

3. Photographs of existing parking areas, landscaping, trash

4. enclosure, and signage;

5. Information on existing use on the site, including the

6. addresses, uses, and square footages.

7. Photographs of the existing site if the site is vacant; and

8. Photographs of adjacent properties for context.

c) Up to 15 points – A floor plan showing information on the existing layout and proposed layout of the building interior.

d) Up to 20 points – Building elevations that provide informati on on existing conditions and proposed improvements.

e) Up to 10 points – A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species.

f) Up to 10 points – Colored interior renderings and exterior elev ation renderings (for both existing and/or proposed improvements).

3. Business and operations plan – 100 points

The 100 points awardable under this Subsection 3. sha ll be awarded, as a ministerial duty, pursuant to the following objective criteria:

a) Up to 5 points – A written description of the total square fo otage of the facility with estimated square footage of proposed uses.

b) Up to 10 points – A schedule for beginning operations, in cluding a narrative outlining any proposed construction improvements and a timeline for completion.

c) Up to 15 points – A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.

d) Up to 10 points – A description of the sources(s) of capital and use(s) of capital.

e) Up to 10 points – Pro forma financial statements for at least three (3) years of operation.

f) Up to 10 points – A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.

g) Up to 15 points – A description of marketing procedures and tactics.

h) Up to 5 points – A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.

i) Up to 5 points – A description of hours of operation and opening procedures.

j) Up to 5 points – A description of cash handling procedures.

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include identification of point-of-sale systems, and track and trace software.

l) Up to 5 points – A description of transportation, loading and unloading, distribution, or delivery procedures.

4. Security plan – 100 points
The 100 points awardable under this Subsection 4. sha ll be awarded, as a ministerial duty, pursuant to the following objective criteria:

a) Up to 20 points – The security plan shall be prepared by a professional security consultant.

b) Up to 10 points – A premises security diagram.

c) Up to 50 points – A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the security requirements under this Chapter 4-35.

d) Up to 10 points – A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.

e) Up to 10 points – A description of the services of on-site security guards to include the (1) number of security guards; (2) the hours security guards will be on-site; (3) locations where security will be positioned; and 4) security guard responsibilities.

5. Safety plan – 100 points

The 100 points awardable under this Subsection 5. sha ll be awarded, as a ministerial duty, pursuant to the following objective criteria:

a) Up to 20 points – The safety plan shall be prepared by a professional fire prevention and suppression consultant.

b) Up to 10 points – A premises safety diagram to include (1) a description/illustration of evacuation routes and (2) location of fire extinguishers and other fire suppression equipment.

c) Up to 50 points – A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this Chapter 4-35.

d) Up to 10 points – Identify all gases, pesticides, and chemicals to be used and their storage locations.

e) Up to 10 points – A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.

6. Neighborhood compatibility plan – 150 points

The 150 points awardable under this Subsection 6. sha ll be awarded, as a ministerial duty, pursuant to the following objective criteria:

a) Up to 75 points – A “Good Neighbor Policy” that (1) includes policies and measures in place to protect adjacent uses from any potential impacts e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis retailer, including addressing parking and traffic impacts and (2) de scribes how the cannabis retailer and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance.

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b) Up to 25 points – A description of odor mitigation practices to include: 1) identifying potential sources of odor; (2) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (3) all proposed staff odor training and system maintenance.

c) Up to 25 points – A description of a waste management plan that includes waste disposal locations within the proposed premises and the applicant’s security measures and methods of rendering waste unusable and unrecognizable.

d) Up to 25 points – A description of efforts at sustainability/environmental impact mitigation.

7. Community benefits plan – 100 points

The City Council finds that monetary donations to support City sponsored activities and programs carry out the purpose and intent of the Ordinance and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, 80 of the 100 po ints awardable under this Subsection 7. shall only be awarded if the Applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equa l to one (1) percent of projected gross receipts of the applicant to the following City sponsored programs/causes: ( a) senior citizen programs, ( b) City beautification efforts, (c) fund for enforcement of illegal cannabis operations, (d) public safety, (e) housing programs, (f) recreation services, (g) infrastructure, ( h) general fund, and/or (i) any other proposed City efforts. Beyond the above, no further direct financial contributions shall be considered as part of an applicant’s community benefits plan.

The remaining 20 of the 100 points awardable under this Subsection 7. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:

a) Up to 10 points – A description of a social responsibility plan to include identification of a community liaison and plans to aide and participate in the work of local non-profits, community-based organizations, civic organizations, or social services organizations.

b) Up to 10 points – A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.

8. Labor and employment plan – 100 points

The 100 points awardable under this Subsection 8. sha ll be awarded, as a ministerial duty, pursuant to the following objective criteria:

a) Up to 5 points – An organizational chart of showing owners, managers, and employees.

b) Up to 5 points – A description of the owner’s and manager’s roles in day-to-day operations and decisions.

c) Up to 5 points – A description of the number of employees, title/position, and their respective responsibilities

d) Up to 15 points – A description of compensation to employees, opportunities for continuing education, and employee training.

e) Up to 20 points – A description of whether the cannabis retailer is committed to offering employees a living wage.

f) Up to 15 points – A description of benefits provided to em ployees such as health care, vacation, and City Council Regular Meeting - Page 206 of 267

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medical leave, to the degree they are offered as part of employment.

g) Up to 5 points – A description of a plan to recruit em ployees from socially and economically disadvantaged backgrounds.

h) Up to 30 points – A description of a plan to have at least fifty (50) percent of employee positions filled, and hours worked by employees residing in the City.

Review and Presentation

Upon timely receipt of a retail cannabis business permit application, the City Manager shall conduct background checks.

Following review and scoring of complete applications pu rsuant to objective review criteria, the City Manager shall, as a ministerial duty, rank all applicants according to their scores received and schedule meetings with an ad hoc committee formed by the City Council to review and interview up to the top 12 ranked applicants. Following its review and interview of the selected applicants, the ad hoc committee, in conjunction with City staff, shall score and rank the applicants and recommend up to the top 8 applicants for the City Council’s consideration of an award of retail cannabis business permits.

Upon receipt of the ad hoc committee’s recommendations, the City Manager shall schedule the consideration of an award of retail cannabis business permits at a meeting of the City Council. The City Council shall consider the applicants in order of their rank as determined by the ad hoc committee. The selected applicants will be afforded the opportunity to make a 5-minute public presentation to the City Council describing each of their retail cannabis business permit applications and addressing the objective review cr iteria and quantitative evaluation scale.

Following the presentations made by the applicants, the City Council may issue retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized, with the applicants selected for a retail cannabis business permit being issued at the sole discretion of the City Council.

In so issuing retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized at its sole discretion, the cannabis business permits in accordance with the ranking order of applicants as determined by the ad hoc committee or in accordance with its own determination following the presentations made by the applicants to the City Council and (2) issue the retail cannabis business permits contingent on the City enacting a legally effective means for taxing cannabis retailers.

The City’s Reservation of Right’s

The City reserves the right to reject any and/or all pr oposals, with or without any cause or reason. The City may also, modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting a proposal. Incomplete proposals WILL BE REJECTED.

Furthermore, a proposal RISKS BEING REJECTED for any of the following reasons:

1. Proposal considered not fully responsive to this request for a permit application.

2. Proposal contains excess or extraneous material not called for in the request for permit application.

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CONTACT:

If you have any questions or would like an update on the status of your application, please contact the Department of Development, Compliance and Enforcement Services.

Once approved and prior to operations/engagements in cannabis retail sales:
Valid City Business License
Valid Retail Cannabis Business Permit

Valid State Cannabis License

Fire Department Permit Approval

Valid certificate of occupancy issued by City Building and Safety

Any other governmental agencies with jurisdiction in this matter

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1 CITY OF LYNWOOD
Planning and Building Division
11330 Bullis Road
Lynwood, CA 90262
Tel (310) 603-0220

ZONING CODE VERIFICATION CERTIFICATE
for Commercial Retail Cannabis Business

TO BE COMPLETED BY PLANNING COUNTER STAFF

Zoning:

Staff:

General Plan:

Date:

Amount paid:

TO BE COMPLETED BY THE APPLICANT
(PLEASE PRINT OR TYPE)

A. Zoning Code Verification Certificate
for Commercial Retail Cannabis
Facility

(includes Verification of Zo ning District, General Plan Designation, and Distance requirements)

SUBJECT PROPERTY
LOCATION/ADDRESS:

ASSESSOR’S PARCEL NUMBER(S)

INFORMATION REQUESTED/REASON FOR VERIFICATION APPLICATION:

APPLICANT/CONTACT PERSON

NAME (PRINTED)

ADDRESS CITY STATE ZIP CODE DAYTIME TELEPHONE #

E-MAIL ADDRESS

PLEASE SUBMIT THIS APPLICATION IN PERSON TO: PLANNING ASSOCIATE, PLANNING AND BUILDING DIVISION, 11330 BULLIS ROAD, LYNWOOD, CA 90262
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2 Zoning Code Verification Certificate for Commercial Retail Cannabis Business Site

Zoning Code Verification for Certificate for Commercial Cannabis Business may be issued only for those establishments that meet the specific criteria, per the Lynwood Municipal Code.

Provide evidence including but not limited to scaled maps that the proposed Commercial Cannabis Business conforms to the restrictions and conditions listed below:

1. The Commercial Retail Cannabis Business Site is in the “C2A (Medium Commercial District), C-3 (Heavy Commercial District), or M (Manufacturing District), including any overlay zones, in particular and SPA (Specific Plan Area) covering the C-2A (Medium Commercial District), C-3 (Heavy Commercial District) or M (Manufacturing District).
2. The Commercial Retail Cannabis Business Site is not located closer than a minimum of 650 feet from any parcel on which a school or day-care center are located per the Lynwood Municipal Code. 3. The Commercial Retail Cannabis Business Site is not located closer than a minimum of 950 feet from any Parcel on which a park or youth center per the Lynwood Municipal Code. 4. No Transporter or transportation company will carr y or move cannabis within the City without complying with City or State Law.

Distances. All distances specified in this section shall be measured in the following manner:

5. For schools, day-care centers, parks, or youth centers, the distance shall be measured in a straight line from the subject property line to the closest property line of the lot on which the cannabis business is to be located without regard to intervening structures.

APPLICANT:

By: ________________________________________ Date: ___________________________ (Signature)

________________________________________ Its: _____________________________ (Print) (Title, if any)

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3 INDEMNIFICATION AGREEMENT

FOR ZONING CODE VERIFICATION

CERTIFICATE APPLICATIONS
Applicant submitted an application to the City of
Lynwood Planning Division on____________________,
20____ for the following verification(s): ____________

For good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Applicant
hereby expressly agrees in connection with the processing of Applicant’s Verification application(s) to each and every one of the following terms and conditions:

1. Applicant agrees, as part of and in connection with each and any of the application(s), to defend, indemnify, and hold harmless the City of Lynwood(“City”) and its
officers, contractors, consultants, attorneys, employees and agents from any and all claim(s), action(s), or
proceeding(s) (collectively re ferred to as “proceeding”) brought against City or its officers, contractors,
consultants, attorneys, employees, or agents to
challenge, attack, set aside, void, or annul:

a. Any approvals issued in connection with any of
the above describ ed application(s) by City;
and/or
b. Any action taken to provide related
environmental clearance under the California
Environmental Quality Act of 1970, as amended
(“CEQA”) by City’s advisory agencies, boards or
commissions; appeals boards or commissions;
Planning Commission, or City Council.

Applicant’s indemnification is intended to include, but not be limited to, damages, fees and/or costs awarded against or incurred by City, if any, and costs of suit, claim or litigation, including without limitation attorneys’ fees and other costs, liabilities and expenses incurred in connection with such proceeding whether incurred by Applicant, City, and/or
parties initiating or involved in such proceeding.

2. Applicant agrees to indemnify City for all of City’s costs, fees, and damages incurred in enforcing the
indemnification provisions of this Agreement.

3. Applicant agrees to defend, indemnify and hold harmless City, its officers, contractors, consultants, attorneys, employees and agents from and for all costs and fees incurred in
additional investigation or study of, or for supplementing, redrafting, revising, or amending, any document if made necessary by said proceeding and if Applicant desires to pursue such City approvals and/or clearances, after initiation of the proceeding and that are conditioned on the approval of these documents.

4. In the event that Applicant is required to defend City in connection with such proceeding, City shall have and retain the right to approve:

a. The counsel to so defend City; and
b. All significant decisions concerning the manner in which the defense is conducted;
and
c. Any and all settlements, which approval shall not be unreasonably withheld.

City shall also have and retain the right to not participate in the defense, except that City agrees to reasonably cooperate with Applicant in the defense of the proceeding. If City chooses to have counsel of its own defend any proceeding where Applicant has already retained counsel to defend City in such matters, the fees and expenses of the additional counsel selected by City shall be paid by City. Notwithstanding the immediately preceding sentence, if City’s Attorney’s Office participates in the defense, all City Attorney fees and costs shall be paid by Applicant.

5. Applicant’s defense and indemnification of City set forth herein shall remain in full force and effect throughout all stages of litigation including any and all appeals of any lower court judgments rendered in the proceeding.

After review and consideration of all of the foregoing terms and conditions, Applicant, by its sign ature below, hereby agrees to be bound by and to fully and timely comply with all of the foregoing terms and conditions.

APPLICANT:

By: ________________________________________ Date: ___________________________

(Signature)

________________________________________ Its: _____________________________ (Print) (Title, if any) City Council Regular Meeting - Page 211 of 267

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City Council Regular Meeting - Page 220 of 267
1 ORDINANCE NO. 1751

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADDING SECTION 35 TO CHAPTER 4 LICENSING AND BUSINESS

REGULATIONS OF THE LYNWOOD MUNICIPAL CODE RELATING TO

THE LICENSING AND REGULATION OF CANNABIS RETAILERS IN

THE CITY OF LYNWOOD AND ACCOMPANYING AMENDMENTS TO
SECTION 34 OF CHAPTER 4 LICENSING AND BUSINESS

REGULATIONS OF THE LYNWOOD MUNICIPAL CODE
WHEREAS, Section 7 of Article XI of the California Constitution authorizes the City of Lynwood (the “City”)to make and enforce within its jurisdictional limit ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its residents; and
WHEREAS, on November 8, 2016, California voters approved Proposition 64, titled “The Adult Use of Marijuana Act ” and enacted a State-level statutory scheme for legalizing, controlling, and regulating commercial cannabis activity related to nonmedicinal cannabis for use by adults twenty-one (21) years of age and older, including the storefront retail sale of nonmedical cannabis for use by adults twenty-one (21) years of age and older, and on June 27, 2017, the Medicinal and Adult Use Cannabis Regulation and Safety Act was signed into law, which provides a comprehensive regulatory framework for licensing, control, and taxation of commercial cannabis activity related to medicinal and nonmedicinal use in California; and
WHEREAS, on December 20, 2016, the City Council of the City of Lynwood (the “City Council”) adopted OrdinanceNo. 1688 adding Chapter 4-34 to the City of Lynwood Municipal Code (the “City Municipal Code”) and accepting Planning Commission recommendations, with Chapter 4-34 of the City Municipal Code being subsequently amended by Ordinance No. 1700 (adopted by the City Council on September 19, 2017) and by Ordinance No. 1707 (adopted by the City Council on January 2, 2018), licensing and regulating all forms of commercial cannabis activity, except the storefront retail sale of medicinal and nonmedicinal cannabis; and
WHEREAS, Chapter 4-34 of the City Munici pal Code presently prohibits the storefront retail sale of medicinal and nonmedicinal cannabis; and WHEREAS, the City Council desires to establish a strong and effective regulatory system with regard to the storefront retail sale of medicinal and nonmedicinal cannabis that protects the public health, safety, and environmental resources, provides a consistent regulatory pathway for the storefront retail sale of medicinal and nonmedicinal cannabis consistent with State regulations, fosters healthy, diverse, and economically viable the cannabis retailers that contribute to the local economy, and ensures that environmental, City Council Regular Meeting - Page 221 of 267
2 public health, safety and nuisance factors related to the storefront retail sale of medicinal and nonmedicinal cannabis are adequately addressed; and WHEREAS, in furtherance of these goals, the City Council desires to add Chapter 4-35 to the City Municipal Code and amend Chapter 4-34 of the City Municipal Code to establish development standards and permitting requirements to allow the storefront retail sale of medicinal and nonmedicinal cannabis within limited City zoning districts; and WHEREAS, the City Council further desires to implement reasonable regulations that are intended to address the secondary negative impacts to the City and its resources, including, nuisance impacts and criminal impacts that may result from the operation of cannabis retailers in the City and to ensure that the effects such impacts may have on the health, safety, and welfare of businesses and residents within the City are mitigated to the greatest extent possible; and
WHEREAS, the City Council is aware that both community benefits and potential adverse impacts may result from the operation of cannabis retailers in the City, and, therefore, desires to: (1) help ensure that al l such impacts are adequately mitigated and offset by the potential community benefits th ose businesses can provide to the City and its residents and (2) to help provide sufficient code enforcement and law enforcement resources to address such adverse impacts and to ensure compliance with all applicable laws and regulations.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES ORDAIN AS FOLLOWS:

SECTION 1. This Ordinance shall be known and may be cited as “The Lynwood Cannabis Retail Sales Regulation and Public Safety Ordinance”( t h e “Ordinance”).

SECTION 2. Purpose and Intent. The purpose and intent of this Ordinance is to accommodate the needs of medically-ill pe rsons in need of cannabis for medicinal purposes, as advised and recommended by their health care provider(s), and adults over the age of twenty-one (21), and to implement State of California (“State”) law, which includes, but is not limited to the provisions of the Medicinal & Adult-Use Cannabis Regulation & Safety Act (hereinafter, “MAUCRSA”), as may be amended and augmented under State law, while imposing regulations on the conduct of business and use of land to protect the City of Lynwood ’s (the “City”)neighborhoods, residents, and businesses from negative impacts. It is a further purpose and intent of this Ordinance to regulate the retail sale of cannabis and cannabis products in a manner which is responsible, which protects the health, safety, and welfare of the residents of the City, and which enforces rules and regulations consistent with State law. In part to meet these objectives, a retail cannabis business permit shall be required to own or to operate a cannabis retailer within the City. Further, this Ordinance’s requirement for a cannabis retailer to possess a retail cannabis business permit is in addition to any other permits, licenses, and approvals City Council Regular Meeting - Page 222 of 267
3 which may be required to conduct business in the City, and is in addition to any permits, licenses, and approvals required under State or County of Los Angeles (“County”)law.

SECTION 3. Legal Authority. Pursuant to Section 7 of Article XI of the State Constitution, and the provisions of the MAUCRSA, as may be amended and augmented under State law and any subsequent State legislation regarding the same, the City is authorized to adopt ordinances that establish standards, requirements, and regulations for local licenses and permits for cannabis retailers. Except as otherwise provided in this Ordinance, any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State, or any of its departments or divisions, shall be the minimum standards a pplicable to the retail sale of cannabis and cannabis products in the City.

SECTION 4. Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended by adding Chapter 4-35(Cannabis Retailers) to read as follows:

Chapter 4-35: CANNABIS RETAILERS
4-35.1: Cannabis retailers prohibited unless specifically authorized. a. Except as specifically authorized by th is Chapter 4-35, to the fullest extent permitted by State law, the City expressly prohibits any and all cannabis retailers within the City.
b. Nothing in this Chapter 4-35 shall be construed or interpreted to permit the commercial possession, furnishing, manufactur e, cultivation, distribution, processing, storing, laboratory testing, packaging, labe ling, transportation, delivery, or sale of industrial hemp.
c. To the extent expressly authorized in this Chapter 4-35 of the City Municipal Code, cannabis retailers are permitted in the City, subject to the satisfaction of all requirements set forth in this Chapter 4-35, MAUCRSA, and all other applicable State and local laws, rules, and regulations.
4-35.2: Compliance with laws.

It is the responsibility of the owners, managers, officers, employees, and agents of any cannabis retailer to ensure that it is operat ing in a manner compliant with all applicable State and local laws and any regulations promulgated thereunder. Nothing in this Chapter 4-35 shall be construed as in conflict with State law.
4-35.3: Definitions.

City Council Regular Meeting - Page 223 of 267
4 When used in this Chapter 4-35, the following words shall have the meanings ascribed to them as set forth herein. Words and phrases not specifically defined below shall have the meanings ascribed to them elsewhere in this Code or shall otherwise be defined by common usage. For definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb conjugations shall be included. Any reference to State statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. “Applicant” means the person applying for the retail cannabis business permit under this Chapter 4-35 (not the owners or the managers of the applicant). “Cannabis” has the same meaning as defined in Chapter 4-34 of the City Municipal Code. “Cannabis Concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby incre asing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this Chapter 4-

35. A cannabis concentrate is not considered food, as defined by Section 109935 of the State Health & Safety Code, or drug, as defined by Section 109925 of the State Health & Safety Code.
“Cannabis Product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
“Cannabis Retailer” or “Retailer” or “Dispensary” means a location where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, fo r retail sale, including a cannabis retailer establishment that delivers cannabis and cannabis products. “Caregiver” or “Primary Caregiver” has the same meaning as that term is defined in Section 11362.7 of the State Health & Safety Code.
“City” means the City of Lynwood.
“City Attorney” means the City Attorney of the City of Lynwood or his or her designee(s). “City Council” means the City Council of the City of Lynwood. “City Manager” means the City Manager of the City of Lynwood or his or her designee(s). “Commercial Cannabis Activity”has the same meaning as defined in Chapter 4-34 of the City Municipal Code
City Council Regular Meeting - Page 224 of 267
5 “Commercial Cannabis Business” has the same meaning as defined in Chapter 4 -34 of the City Municipal Code.
“County” meansthe County of Los Angeles.
“Customer” means a natural person twenty-one (21) years of age or over or a natural person eighteen (18) years of age that is a qualified patient or primary caregiver. “Day Care Center” or “Childcare Facility” means afacility, other than a family day care home, serving infant, toddler, preschool, and school age children, licensed by the State Department of Social Services pursuant to Section 1596.951 of the State Health & Safety Code. Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “Day Care Center” under this Chapter 4-35 shall override the definition of “Day Care Center” in MAUCRSA at Section 26001 of the State Business & Professions Code.
“Delivery” has the same meaning as defined in Chapter 4-34 of the City Municipal Code. “Edible Cannabis Product” means a cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the State Food & Agriculture Code. An edible cannabis product is not considered food, as defined by Section 109935 of the State Health & Safety Code, or drug, as defined by Section 109925 of the State Health & Safety Code. An edible cannabis product shall not be deemed to be adulterated pursuant to Section 26131 of the State Business & Professions Code solely because it contains cannabis.
“Employee” means each natural person employed by a cannabis retailer who is a part- time, full-time, temporary, or permanent employee.
“Gross receipts ” means, except as otherwise specifically provided herein, whether designated as a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all rece ipts, cash, credits, and property of any kind or nature) received or payable for sales of goods, ware s, or merchandise without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor, or service costs, interest paid or payable, losses, or any other expense whatsoever.

However, the following shall be excluded from gross receipts:
a. Cash discounts where allowed and taken on sales;
b. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
City Council Regular Meeting - Page 225 of 267
6 c. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
d. Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures, machinery, or other equipment used by the taxpayer in the regular course of the taxpayer’s business;
e. Cash value of sales, trades, or transactions between departments or units of the same business;
f. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; and g. Any proceeds resulting from a transfer or change of ownership or control in the business.
“Labor Peace Agreement ” means an agreement between a cannabis retailer and any bona fide labor organization that, at a minimum, protects the City’s proprietary interests by prohibiting labor organizations and me mbers from engaging in picketing, work stoppages, boycotts, and any other economic interference with a cannabis retailer. This Agreement means that the cannabis retailer has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis retailer ’s employees. The Agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis retailer ’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under State law, and terms and conditions of employment.
“Licensing Authority” means a State agency responsible for the issuance, renewal, or reinstatement of State license, or a State agency authorized to take disciplinary action against a State licensee.
“Liquid Assets” means assets that can be readily converted into cash. “Liquid assets” include, but are not limited to, the following : funds in checking or savings accounts, certificates of deposit, money market accounts, mutual fund shares, publicly traded stocks, and United States savings bonds. “Liquid assets” does not mean household items, furniture and equipment, vehicles , cannabis or cannabis products, business inventory, or real property and improvements thereto.
“Manager” means any individual who will be participating in the direction, control, or management of an applicant or a permittee, including but not limited to, any (i) manager or managing member or other officer of a limited liability company applicant or permittee City Council Regular Meeting - Page 226 of 267
7 or (ii) president, chief executive officer, secretary, treasurer, chief financial officer, or other officer of a for profit corporation applicant or permittee. “Marijuana”means “cannabis”as that term is defined in this Chapter 4-35. “MAUCRSA” meansDivision 10 (commencing with Section 26000) of the State Business and Professions Code and any regulations promulgated thereunder. “Ordinance” means The Lynwood Cannabis Retail Sales Regulation and Public Safety Ordinance.
“Owner” means any of the following:
a. A person owning in the aggregate equity int erests representing twenty (20) percent or more of the voting power of all outstanding equity in the applicant or a permittee; b. The president, chief executive officer, secretary, treasurer, or chief financial officer of a nonprofit applicant or permittee; or
c. A member of the board of directors of a nonprofit applicant or permittee.

Notwithstanding the above, every applicant and permittee must have at least one individual person designated as an “owner” for the purpose of compliance with this Chapter 4-35, including the review and evaluation of any retail cannabis business permit application.
“Panic Button ” means a n emergency electronic contact device which allows an employee in the event of an ongoing crime, threat, or other emergency to alert a security guard responsible for providing immediate on-scene assistance. “Patient” or “Qualified Patient” means anatural person who is entitled to the protections of Section 11362.5 of the State Health & Safety Code and includes a person issued an identification card issued pursuant to Article 2.5 of Chapter 4-35 of Division 10 of the State Health & Safety Code.
“Permittee” meansthe holder of a valid, City-issued retail cannabis business permit. “Person” means an individual/natural person, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.
“Person With An Identification Card ” shall have the meaning given to that term in Section 11362.7 of the State Health & Safety Code.

City Council Regular Meeting - Page 227 of 267
8 “Premises” means the designated structure or structures and land specified in the retail cannabis business permit application that is owned, leased, or otherwise held under the control of the applicant or permittee where canna bis retail sales will be or is conducted.

The premises shall be a contiguous area and shall only be occupied by one permittee. “Public Park ” means an outdoor premises containing existing or proposed parks, including community parks, neighborhood pa rks, mini-parks, and urban parks that are currently or proposed to be owned or operated by the City or other governmental agency. “Public Park” shall not include any youth center.
“Retail Cannabis Business Permit ” means a regulatory permit/license issued by the City pursuant to this Chapter 4-35 to a cannabis retailer and is required before any cannabis retail sales may be conducted in the City and is made expressly contingent upon the cannabis retailer’s ongoing compliance with all of the requirements of this Chapter 4- 35 and any regulations adopted by the City governing cannabis retail sales. “Retail Sale(s)” or “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.
“Sale” means any sale, exchange, or barter or other transaction for any consideration. “School” meansas evidenced by the State Department of Education school directory, a public school instructing children in grades kindergarten through 12, as authorized by the State Department of Education or a privat e school instructing children in grades kindergarten through 12 that has filed a verification of private school affidavit with the State Department of Education pursuant to Section 33190 of the State Education Code, excluding any private school in which education is primarily conducted in a private home.

Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “school” under this Chapter 4-35 shall override the definition of “school” used in MAUCRSA or Section 11362.768 of the Health & Safety Code.
“State” means the State of California.
“State License” means apermit or license issued by the State, or one of its departments or divisions, under MAUCRSA and any subsequent State legislation regarding the same to engage in cannabis retail sales.
“Topical Cannabis” means a cannabis product intended for external application and/or absorption through the skin. A topical cannabi s product is not considered a drug as defined by Section 109925 of the State Health & Safety Code.

City Council Regular Meeting - Page 228 of 267
9 “Youth Center” meansany facility that is operated by a public agency or nonprofit entity with the sole purpose of providing educational and/or recreational serv ices to minors. “Youth center” shall not include (a) any public park, (b) any private martial arts, yoga, ballet, music, or similar studio of this nature , or (c) any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor’s office primarily serving children. Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code, this definition of “youth center” under this Chapter 4-35 shall override the definition of “youth center” in MAUCRSA at Section 26001 of the State Business & Professions Code.
4-35.4: Retail Cannabis Business Permit Required.
a. No person shall operate a cannabis retailer or engage in cannabis retail sales within the City unless such business or acti vity is currently in compliance with all applicable State and local laws, rules, and regulations and the cannabis retailer has all of the following:

1. A valid City business license to c onduct such business or activity;

2. A valid retail cannabis business permit issued by the City pursuant to this Chapter 4-35 to conduct such business or activity;

3. A valid State license authorizing such business or activity in the City; and

4. A valid certificate of occupancy issued by the City’s Building & Safety Division to conduct the cannabis retail sales a t the premises identified in the retail cannabis business permit.
4-35.5: Number of Authorized Cannabis Retailers Permitted. a. The City Council may award up to six re tail cannabis business permits within the City.
b. Nothing in this Chapter 4-35 creates a ma ndate that the City must authorize any specific number of retail cannabis businesses permits. The City reserves the discretion to determine that it is in the best interest of t he City to not issue the full number of retail cannabis business permits authorized in this Section 4-35.5 or to reduce the number of retail cannabis business permits authorized in this Section 4-35.5. However, the City may not increase the number of retail cannabis business permits authorized in this Section 4-

35.5, except as required by (i) a judicial remedy or (ii) a vote of the people of the City. 4-35.6: Location and Design Requirements for Cannabis Retailers.

City Council Regular Meeting - Page 229 of 267
10 Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in Section 26054(b) of the Stat e Business & Professions Code, cannabis retailers in the City shall be subject to the following location and design requirements:
a. Cannabis retailers shall be a permitted use subject to this Chapter 4-35 on property (1) located more than six-hundred-fifty (650) feet from any school or day care center, (2) located more than nine-hundred-fifty (950) feet from any public park or youth center, and (3) zoned: C-2A (Medium Commercial District), C-3 (Heavy Commercial District), or M (Manufacturing District), including any overlay zones, in particular any SPA (Specific Plan Area) covering the C-2A (Medium Commercial District), C-3 (Heavy Commercial District), or M (Manufacturing District)
b. The distances specified in this Section 4-35.06 shall be the horizontal distance measured in a straight line from the parcel line of the sensitive use to the closest parcel line of the lot on which the cannabis retailer is to be located without regard to intervening structures.
c. Each cannabis retailer shall:

1. Be constructed in a manner that prevents odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties. Odors from the cannabis retailer shall not be detectable from outside the premises and adequate odor control technology shall be utilized;

2. Be provided with adequate electricity, sewerage, disposal, water, fire protection, and storm drainage facilities for the intended purpose; and

3. Provide and maintain a neighborhood compatibility plan so the City Manager or designee(s) may find that the cannabis retailer and its operating characteristics are not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance.
4-35.7: Cannabis Retailer Application Procedure.
a. The City Manager, pursuant to Section 4-3 5.22, shall, as a ministerial duty, make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers up to the number of retail cannabis business permits authorized in Section 4-35.5. b. The City Manager shall, as a ministeri al duty, cease acceptance of retail cannabis business permit applications thirty (30) days afte r making available the necessary forms City Council Regular Meeting - Page 230 of 267
11 and adopting any necessary application rules for the submission, intake, review, and approval of retail cannabis business permit applications for retailers. c. The City Manager shall, as a ministerial duty, review timely submitted retailer applications for the following minimum requirements:

1. Payment of a non-refundable application fee established by resolution of the City Council;

2. Sufficient evidence of the legal right to use the proposed property for the proposed use, to include ownership, a lease, sublease, purchase agreement, assignment of purchase agreement, or lease or purchase option, in the name of the applicant, which may include nominal consideration and be contingent upon issuance of a retail cannabis business permit or other approvals. The City shall only consider one applicant per County Assessor’s Identification Number. In the event that more than one applicant applies for a retail cannabis business permit application at a given property address or a given County Assessor’s Identification Number, the City Manager shall, as a ministerial duty, only accept the retail cannabis business permit application with the earliest effective date for the evidence of the legal ri ght to use the proposed property for the proposed use in the name of the applicant;

3. Sufficient evidence to demonstrate that the proposed property complies with location and zoning requirements in Section 4-35.6;

4. Proof of funds showing that the Applicant has access and control of over $1,000,000.00 in liquid assets (which such liquid assets having been under possession for at least ninety (90) days prior to the date of the appl ication submission under this Section), which may be shown via a binding legal agreement in the name of the Applicant such as a promissory note so long as said legal agreement is accompanied by a proof of funds in the name of a party to the agreement so long as that demonstrates access and control of over $1,000,000.00 in liquid assets under possession for at least ninety (90) days prior to the date of the application submission under this Section. Applicants and Permittees shall not be required to show that the Applicant or Permittee has access and control of over $1,000,000.00 in liquid assets except on initial application pursuant to this Section 4-35.7, a change in location applicat ion pursuant to Section 4-35.13, or an ownership transfer application pursuant to Section 4-35.14;

5. A set of plans, including a site deve lopment plan, floor plan(s), building elevations (all four (4) sides), and a conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species;

6. Colored interior and elevation renderings;
City Council Regular Meeting - Page 231 of 267
12 7. A completed background check application and receipt for each owner and manager of the Applicant pursuant to Section 4-35.18(l); and

8. The following application components: (a) Qualifications of the Applicant’s owners and managers; (b) plans, renderi ngs, and overall location; (c) business and operations plan; (d) security plan; (e) safety plan; (f) neighborhood compatibility plan; (g) labor and employment plan; and (h) community benefits plan.

The City Manager shall, as a ministerial dut y, reject any retail cannabis business permit application that fails to meet the minimum r equirements contained in this Subsection c, and applicants shall not have the right to supplement or amend their retail cannabis business permit applications once the City Manager has closed the window to submit an application.
d. The City Manager shall, as a ministerial duty review and score any complete applications pursuant to the following objective review criteria, according to the following quantitative evaluation scale that holds a total criteria value of 1,000 points:

1. Qualifications of t he Applicant’s Owners and Managers – 200 points The City Council finds that a proven track-record of (i) business operations providing services or operating in the City or (ii) cannabis retailer operations experience, wherever performed, that successfully generate tax revenue carries out the purpose and intent of the Ordinance and are, therefore, critical for an applicant to demonstrate the qualifications of the Applicant’s Owners and Managers. Accordingly, 150 of the 200 points awardable under this Subsection 1 shall only be awarded, as a ministerial duty, (i) if an owner or owners of the Applicant with an aggregate ownership interest of fifty-one (51) percent or more is currently at the time of applicatio n submission under this Section and since at least February 1, 2020, the President, CEO, or limited liability company manager of a business that provides (or has provided) services or operates (or has operated) in the City and that has generated at least $8,000,000.00 in annual gross receipts as demonstrated by the most recent tax payment receipts from, tax filings to, or tax returns filed by the business with a city, county, state, of the federal government or by a letter from a certified public accoun tant attesting to the business ’sgross receipts or (ii) if an owner or owners of the Applicant with an ag gregate ownership interest of fifty-one (51) percent, is currently at the time of application submission under this Section an owner or owners with an aggregate ownership interest of fifty-one (51) percent of (or is an owner as a result of being the chief executive officer of a nonprofit entity of) a single licensed and lawfully operating commercial cannabis retailer operation (excluding any non-retailer microbusiness, cultivation, manufacturing, dist ribution, or other non-retailer commercial cannabis operation components) that has generated at least $5,000,000.00 in gross receipts in a consecutive six-month period in the year immediately preceding the date of the application submission under this Section, as demonstrated by tax payment receipts City Council Regular Meeting - Page 232 of 267
13 from, tax filings to, or tax returns filed with a city, county, or state or by a letter from a certified public accountant attesting to the cannabis retailer’sgross receipts.

The remaining 50 of the 200 points awardable under this Subsection 1 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
a. Up to 50 points – A description of the A pplicant’s owner(s) and manager(s) qualifications detailing any experience operating cannabis retailers in any jurisdiction where cannabis retailers are permitted or spec ial business or professional qualifications or licenses of the applicant’s owner(s) and manager(s) that would add to the quality of services that the cannabis retailer would provide , including in areas related to cannabis, such as legal, finance, business ownership /administration, waste management, real estate development, scientific, or healthcare or wellness fields.

2. Plans, renderings, and overall location – 150 points The City Council finds that the further a c annabis retailer is located away from youth centers, the better a cannabis retailer will carry out the purpose and intent of the Ordinance (in particular the use of land to protect the City’s neighborhoods, residents, and businesses from negative impacts) and that the sensitive use buffer for youth centers contained in Section 4-35.6 is a minimum rather than an ideal distance to carry out the purpose and intent of the Ordinance. Accordingly, 75 of the 150 points awardable under this Subsection 2 shall only be awarded, as a ministerial duty, if an Applicant’s proposed cannabis retailer is located on property located more than one-thousand five-hundred (1,500) feet from any youth centers identified and measured pursuant to Section 4-35.6 above and Section 14 of the Ordinance.

The remaining 75 of the 150 points awardable under this Subsection 2 shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 10 points – A premise diagram in accordance with Section 5006 of Division 42 of Title 16 of the State Code of Regulations. (b) Up to 10 points – A site development plan that provides information on existing conditions and proposed improvements to the site and how it meets or will meet the development standards outlined in Chapter 25 of the City Municipal Code, including adequate parking. Information on existing conditions shall include:
1) Exterior photographs showing all sides of any existing structure(s);
2) Photographs of existing parking areas, landscaping, trash enclosure, and signage;
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14 3) Information on existing use on the site, including the addresses, uses, and square footages.
4) Photographs of the existing si te if the site is vacant; and 5) Photographs of adjacent properties for context.
(c) Up to 15 points – A floor plan showing information on the existing layout and proposed layout of the building interior.
(d) Up to 20 points – Building elevations that provide information on existing conditions and proposed improvements.
(e) Up to 10 points – A conceptual landscape plan with the percentage of landscaping in the parking lot, setback areas, and tree size and species. (f) Up to 10 points – Colored interior renderings and exterior elevation renderings (for both existing and/or proposed improvements).

3. Business and operations plan – 100 points
The 100 points awardable under this Subsecti on 3. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 5 points – A written description of the total square footage of the facility with estimated square footage of proposed uses. (b) Up to 10 points – A schedule for beginning operations, including a narrative outlining any proposed construction improvements and a timeline for completion.
(c) Up to 15 points – A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operating costs.
(d) Up to 10 points – A description of the sources(s) of capital and use(s) of capital.
(e) Up to 10 points – Pro forma financial statements for at least three (3) years of operation.
(f) Up to 10 points – A description of the type of products to be sold and the estimated quantity and value of product(s) to be sold.

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15 (g) Up to 15 points – A description of marketing procedures and tactics. (h) Up to 5 points – A description of day-to-day operations that should acknowledge both state and local laws and should be consistent with industry best practices.
(i) Up to 5 points – A description of hours of operation and opening procedures.
(j) Up to 5 points – A description of cash handling procedures. (k) Up to 5 points – A description of inventory control procedures to include identification of point-of-sale systems, and track and trace software. (l) Up to 5 points – A description of transportation, loading and unloading, distribution, or delivery procedures.

4. Security plan – 100 points
The 100 points awardable under this Subsecti on 4. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 20 points – The security plan shall be prepared by a professional security consultant.
(b) Up to 10 points – A premises security diagram.
(c) Up to 50 points – A description of access control, inventory control, cash handling, and other security procedures and security equipment demonstrating compliance with the se curity requirements under this Chapter 4-35.
(d) Up to 10 points – A description of the intrusion alarm and monitoring system including the name and contact information for the monitoring company.
(e) Up to 10 points – A description of the services of on-site security guards to include the (1) number of security guards; (2) the hours security guards will be on-site; (3) locations where security will be positioned; and (4) security guard responsibilities.

5. Safety plan – 100 points
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16 The 100 points awardable under this Subsecti on 5. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 20 points – The safety plan shall be prepared by a professional fire prevention and suppression consultant.
(b) Up to 10 points – A premises safety diagram to include (1) a description/illustration of evacuation routes and (2) location of fire extinguishers and other fire suppression equipment.
(c) Up to 50 points – A description of safety procedures, training for emergency situations, and safety equipment demonstrating compliance with the safety requirements under this Chapter 4-35.
(d) Up to 10 points – Identify all gases, pesticides, and chemicals to be used and their storage locations.
(e) Up to 10 points – A description of the firm alarm and monitoring system including the name and contact information for the monitoring company.

6. Neighborhood compatibility plan – 150 points
The 150 points awardable under this Subsecti on 6. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 75 points – A “Good Neighbor Policy” that (1) includes policies and measures in place to protect adjacent uses from any potential impacts (e.g., noise, light, odor, traffic, etc.) related to the proposed cannabis retailer, including addressing parking and traffic impacts and (2) describes how the cannabis retailer and its operating characteristics will be proactively managed so the business is not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding area and will not result in the creation of a nuisance. (b) Up to 25 points – A description of odor mitigation practices to include:
(1) identifying potential sources of od or; (2) a description of odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises; and (3) all proposed staff odor training and system maintenance.
(c) Up to 25 points – A description of a waste management plan that includes waste disposal locations within the proposed premises and the City Council Regular Meeting - Page 236 of 267
17 applicant’ssecurity measures and methods of rendering waste unusable and unrecognizable.
(d) Up to 25 points – A description of efforts at
sustainability/environmental impact mitigation.

7. Community benefits plan – 100 points
The City Council finds that monetary donations to support City sponsored activities and programs carry out the purpose and intent of the Ordinance and are, therefore, critical for an applicant to demonstrate an effective community benefits plan. Accordingly, 80 of the 100 points awardable under this Subsection 7. shall only be awarded if the Applicant pledges to voluntarily provide a public benefit to a public use (or a combination thereof), which is defined as a direct financial contribution equal to one (1) percent of projected gross receipts of the applicant to the following City sponsored programs/causes: (a) senior citizen programs, (b) City beautification efforts, (c) fund for enforcement of illegal cannabis operations, (d) public safety, (e) ho using programs, (f) recreation services, (g) infrastructure, (h) general fund, and/or (i) an y other proposed City efforts. Beyond the above, no further direct financial contributions shall be considered as part of an applicant’s community benefits plan.

The remaining 20 of the 100 points awardable under this Subsection 7. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 10 points – A description of a social responsibility plan to include identification of a community liaison and plans to aide and participate in the work of local non-profits, community-based organizations, civic organizations, or social services organizations.
(b) Up to 10 points – A description of a plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction.

8. Labor and employment plan – 100 points
The 100 points awardable under this Subsection 8. shall be awarded, as a ministerial duty, pursuant to the following objective criteria:
(a) Up to 5 points – An organizational chart of showing owners, managers, and employees.
(b) Up to 5 points – A description of the owner’s and manager’s roles in day-to-day operations and decisions.

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18 (c) Up to 5 points – A description of the number of employees, title/position, and their respective responsibilities
(d) Up to 15 points – A description of compensation to employees, opportunities for continuing education, and employee training. (e) Up to 20 points – A description of whether the cannabis retailer is committed to offering employees a living wage.
(f) Up to 15 points – A description of benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment.
(g) Up to 5 points – A description of a plan to recruit employees from socially and economically disadvantaged backgrounds.
(h) Up to 30 points – A description of a plan to have at least fifty (50) percent of employee positions filled, and hours worked by employees residing in the City.
e. Upon timely receipt of a retail cann abis business permit application, the City Manager shall conduct background checks in accordance with Section 4-35.18(l).

Following review and scoring of complete applications pursuant to objective review criteria under Subsection d., the City Manage r shall, as a ministerial duty, rank all applicants according to their scores received from Subsection d, and schedule meetings with an ad hoc committee formed by the City Council to review and interview up to the top 12 ranked applicants. Following its review and interview of the selected applicants, the ad hoc committee, in conjunction with City staff, shall score and rank the applicants and recommend up to the top 8 applicants for the City Council’s consideration of an award of retail cannabis business permits. Upon receipt of the ad hoc committee’s recommendations, the City Manager shall schedule the consideration of an award of retail cannabis business permits at a meeting of th e City Council. The City Council shall consider the applicants in order of their rank as determined by the ad hoc committee. The selected applicants will be afforded the opportunity to make a 5-minute public presentation to the City Council describing ea ch of their retail cannabis business permit applications and addressing the objective review criteria and quantitative evaluation scale in Subsection d. Following the presentations made by the applicants described in this Subsection e., the City Council may issue retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized in Section 4-35.5, with the applicants selected for a retail cannabi s business permit being issued at the sole discretion of the City Council. In so issuing retail cannabis business permits to applicants up to the number of retail cannabis business permits authorized in Section 4-35.5 at its sole discretion, the City Council shall have the absolute discretion to (1) award retail City Council Regular Meeting - Page 238 of 267
19 cannabis business permits in accordance with the ranking order of applicants as determined by the ad hoc committee or in accordance with its own determination following the presentations made by the applicants to the City Council and (2) issue the retail cannabis business permits contingent on the Ci ty enacting a legally effective means for taxing cannabis retailers. However, the City Council shall not issue a retail cannabis business permit to any applicant with an owner or manager that:

1. Provided false or misleading information on the applicant’s retail cannabis business permit application;

2. Has been convicted of (or pled no contest to) “an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made” as that term is defined in 26057(b)(4) of the State Business & Professions Code; or

3. Has been sanctioned by a licensing authority or a city, county, or state for unlicensed commercial cannabis activities or has had a license suspended or revoked under MAUCRSA in the three (3) years immed iately preceding the date the application was submitted.
f. Any decision of the City Manager or City Council under this Section 4-35.7 shall be a final administrative decision not sub ject to administrative appeal under any provisions of this Chapter 4-35 or any provisions of the City Municipal Code but, rather, subject to judicial review and remedies.
g. In the event that the City Council is or dered to increase the number of retail cannabis business permits issued for retailers by a court of competent jurisdiction as a judicial remedy, the City Manager shall, as a ministerial duty, reinstitute the application procedure under this Section 4-35.7, subjec t to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. In the event that the number of active, operating retailers and issued retail cannabis business permits falls below the number of retail cannabis business permits for retailers authorized in Section 4- 35.5, the City Council may, at its sole discretion, require the City Manager, as a ministerial duty, to reinstitute the application procedure under this Section 4-35.7, subjec t to the number of retail cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operating retailer) for issuance. For the purpose of this Section, a retailer shall be considered operating if (1) upon initial issuance of retail cannabis business permit (or approval of a change in location pursuant to Section 4-35.13), the retailer commences lawful operations within twenty-four (24) months (subject to the City Manager providing extensions in his or her reasonable discretion if the permittee can demonstrate that the delay was due to situations beyond its control and/or that significant progress towards establishing the use has been made) or (2) following initial commenc ement of lawful operations, the retailer does not cease or abandon operations fo r one-hundred twenty (120) consecutive or City Council Regular Meeting - Page 239 of 267
20 cumulative days in any one (1) year period. A retailer’s failure to commence lawful operations within twenty-four (2 4) months or following initia l commencement of lawful operations, the retailer abandons operations for one-hundred twenty (120) consecutive or cumulative days in any one (1) year period shall be considered a material violation of this Chapter 4-35.
4-35.8: Limitations on the City’s liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a retail cann abis business permit pursuant to this Chapter 4-35 or otherwise approving the operation of any cannabis retailer. As a condition to the approval of any retail cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive a retail cannabis business permit:
a. Execution of an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant ’s sole cost and expense), and hold the City, and its officers, officials, employees, representati ves, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, o r losses which arise out of, or which are in any way related to, the City ’s issuance of the retail cannabis business permit, the City ’s decision to approve the operation of the cannabis retailer or activity, the process used by the City in making its decision, or the alleged violation of any federal, State, or local laws by the cannabis retailer or any of its officers, employees, or agents. This obligation shall commence immediately upon the City’s selection of an applicant for a retail cannabis business permit.
b. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Attorney. c. Defend and indemnify the City for all costs and expenses, including but not limited to attorneys’fees and court costs, that the City may be required to pay as a result of any legal challenge related to the City ’s approval of the applicant ’s retail cannabis business permit or related to the City ’s approval of a cannabis retail sales. In such instance, the City shall have the right to choose the defense counsel to represent the City at the sole expense of the permittees. A permittee’s failure to pay the City its proportional share of costs within forty-five (45) days following th e City providing the permittee notice of the City’s exercise of its indemnity rights herein shall be considered a material violation of this Chapter 4-35. This obligation shall commence immediately upon the City’s selection of an applicant for a retail cannabis business permit.

4-35.9: Retail Cannabis Business Permit Term.
a. Subject to this Section 4-35.9 and Section 4- 35.10, the term of each retail cannabis business permit shall be ten (10) years, unless the permit is revoked by the City for any reason authorized by this Chapter 4-35. Each permit may be extended for two additional City Council Regular Meeting - Page 240 of 267
21 years twice administratively by the City Manager. Permits that are extended twice administratively may request an extension of up to ten (10) years by application to the City Council. The process for requesting such extensions shall be approved by the City Council by resolution prior to the expiration of the initial ten (10) year term. b. Upon the one (1) year anniversary of the date of issuance for each retail cannabis business permits and each year thereafter, the City Manager shall conduct a performance review of the permittee to assess compliance with the requirements of this Chapter 4-35.

Within thirty (30) days of the conclusion of the annual performance review of the permittee, the City Manager shall issue a letter of compliance or noncompliance outlining all items to be corrected to ensure full compliance. In the event of any noncompliance, the permittee shall have sixty (60) days to remedy such noncompliance. However, in the event such noncompliance items cannot be remedied within sixty (60) days, such noncompliance items shall not constitute a mater ial violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this Chapter 4-35 subject to suspension or revocation under Section 4-35.10 if the permittee commences correction of such noncompliance items within sixty (60) days and thereafter diligently prosecutes correction of such noncompliance items to completion. The City Manager shall have the final discretion and authority to determine whether a permittee is working diligently to correct all noncompliance items in a timely manner.
c. The permittee shall pay a non-refundable fee in an amount to be set by the City Council via resolution to cover the costs of conducting the performance review, together with any costs incurred by the City to administer the program created under this Chapter 4-35.
4-35.10: Suspension and Revocation of Retail Cannabis Business Permits. a. The City Manager may suspend or revoke a retail cannabis business permit at any time for any material violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this Chapter 4-35.
b. Suspension or revocation of a State lic ense issued by the State or by any of its departments or divisions, corresponding to the retail cannabis business permit shall immediately result in the suspension of th e associated retail cannabis business permit until the State, or its applicable department or division, reinstates the State license or otherwise lifts such suspension.
c. A permittee shall inform the City Manager or designee(s) of any suspension, revocation, or termination of a State license corresponding to its retail cannabis business permit within five (5) business days of the suspens ion, revocation, or termination of the State license.
4-35.11: Appeals Regarding Retail Cannabis Business Permits.

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22 a. Within ten (10) calendar days after the date of a decision of the City Manager to revoke or suspend an issued retail cannabis business permit, deny a change in location application, or deny a change in ownership application, an aggrieved Party may appeal such action to the City Council by filing a writ ten appeal with the City Clerk setting forth the reasons why the decision was not proper. An appeal shall stay all proceedings in furtherance of the appealed action.
b. At the time of filing, the appellant shall pay the designated, non-refundable appeal fee established by resolution of the City Council.
c. Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before the City Council. The City Council shall hear the matter de novo and shall conduct the hearing pursuant to the procedures set forth by the City. d. The appeal shall be held within a reasonable time after filing the appeal, but in no event later than ninety (90) days from the date of such filing. The City shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing. e. At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.
f. At the conclusion of the hearing, the City Council may affirm, reverse, or modify the decision appealed. The decision of the Ci ty Council shall be a final administrative decision, subject to judicial review and remedies.
4-35.12: Change in Location; Updated Application Information. a. A permittee may change the business location specified in a retail cannabis business permit upon submission and approval of a change in location application promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted under Section 4-35.22. The permittee shall pay a non-refundable application fee established by resolution of the City Council to cover all costs incurred by the City in the review and processing of change in location applications. Upon submission of a change in location application by a permittee, the City Manager shall, as a ministerial duty, complete processing of such change in locat ion application. If a change in location application is incomplete or the proposed ch anged location contained therein does not comply with location and zoning requirements in Section 4-35.6 and this Section, the City Manager shall, as a ministerial duty, deny the change in location application. If a change in location application is complete and the proposed changed location contained therein complies with location and zoning requirements in Section 4-35.6 and this Section, the City Manager shall, in his or her sole discret ion, approve or deny the change in location application. In the event the City Manager denies a change in location application, the City Council Regular Meeting - Page 242 of 267
23 permittee may appeal the City Manager’s denial to the City Council pursuant to Section 4-35.11.
b. In addition to the location and zoning requirements in Section 4-35.6, a permittee may not change the business location specified in a retail cannabis business permit to any property located one-thousand (1,000) feet or less from any cannabis retailer permitted under this Chapter 4-35. The distan ce specified in this Subsection b. shall be the horizontal distance measured in a straight line from the parcel line of the cannabis retailer permitted under this Chapter 4-35 to the closest parcel line of the lot on which the cannabis retailer is proposed to be located without regard to intervening structures. c. An applicant or permittee shall notify the City Manager or designee(s) within fifteen (15) calendar days of any material change in the information provided in the applicant or permittee’s retail cannabis business permit applic ation or any change in status of compliance with the provisions of this Chapter 4-35, including any change in the cannabis retailer ownership or management.
4-35.13: Transfer of a Retail Cannabis Business Permit. a. An owner of a retail cannabis business permit shall not transfer ownership or control of such permit to another person unless and until the permittee and transferee(s) obtain an amendment to the permit from the City Manager stating that the transferee(s) is now an owner of the permittee. A permittee may change the ownership specified in a retail cannabis business permit upon submission of a change in ownership application promulgated, as a ministerial duty, by the City Manager pursuant to regulations adopted under Section 4-35.22 within one-hundred eigh ty (180) days following the effective date of this Chapter 4-35. The permittee shall pay a non-refundable application fee established by resolution of the City Council to cover all costs incurred by the City in the review and processing of change in ownership applications. Upon submission of a change in ownership application by a permittee, the City Manager shall, as a ministerial duty, complete processing of such change in ownership application. If a change in ownership application is incomplete or the proposed transferee(s) contained therein do not pass the background check(s) required unde r this Chapter 4-35, the City Manager shall, as a ministerial duty, deny the change in ownership application. If the cumulative (i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is less than twenty-five and one-tenth (25.1) percent from the ownership percentages contained in the permittee’s original retail cannabis business permit appl ication and the proposed transferee(s) contained therein pass the background check(s) required under this Chapter 4-35, the City Manager shall, as a ministerial duty, approve the change in ownership application.

If the cumulative (i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is twenty-five and one-tenth (25.1) percent or more and less than fifty (50) percent, the City Manager shall, in his or her sole discretion, approve or deny the change in ownership application.

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24 In the event the City Manager denies a ch ange in ownership application, the permittee may appeal the City Manager’s denial to the City Council pursuant to Section 4-35.11. If the cumulative ( i.e., including the change in ownership of the permittee from previous change in ownership applications) change in ownership of the permittee is fifty (50) percent or more from the ownership percentages contained in the permittee’s original retail cannabis business permit application and the proposed transferee(s) contained therein pass the background check(s) required under this Chapter 4-35, the City Manager shall, as a ministerial duty, schedule a public hearing before the City Council within thirty (30) days of completed processing, and foll owing the public hearing, the City Council shall, in its sole discretion, approve or deny the change in ownership application. b. Notwithstanding Subsection (a), no retail cannabis business permit may be transferred when the City Manager has notified the permittee that its retail cannabis business permit has been or may be suspended or revoked. c. Any attempt to transfer a retail cannabis business permit either directly or indirectly in violation of this Section 4-35.13 is hereb y declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit.

4-35.14: Records and recordkeeping.
a. Each cannabis retailer shall maintain accura te books and records in an electronic format, which detail all revenues and expenses of the business, including, but not limited to, all of its assets and liabilities. On no less than an annual basis (at the time of performance review of a retail cannabis business permit issued pursuant to this Chapter 4-35), or at any time upon reasonable request of the City, each cannabis retailer shall file a sworn statement detailing the number of sales by the cannabis retailer during the previous 3-month period (or shorter period based upon the timing of the request) detailing sales for each month within such period in question. The statement shall also include gross sales for each month and all applicable taxes paid or due to be paid. On an annual basis, each cannabis retailer shall submit to the City a financial audit of the business ’s operations conducted by an independent certified public accountant. The City may perform its own annual independent financial audit and charge the retailer for such cost incurred by the City. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager.
b. Each cannabis retailer shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis retailer and, separately, the same contact information of all officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis retailer. The register required by this Subsection shall be provided to the City Manager upon a reasonable request.

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25 c. Each cannabis retailer shall maintain a record of all purchases and sales of cannabis and cannabis products for a period of no less than seven (7) years. d. All cannabis retailers shall maintain an inv entory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products.
e. Subject to any applicable restrictions under the Health Insurance Portability & Accountability Act ( “HIPAA”) regulations, each cannabis retailer shall grant the City Manager access to the business’s books, records, accounts, together with any other data or documents relevant to its operation, fo r the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents shall be produced no later than ten (10) business days after receipt of the City Manager ’s request for such data, unless otherwise stipulated by the City Manager. The City Manager may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware.
4-35.15: Security Measures.
a. A cannabis retailer shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the cannabis retailer. Except as may otherwise be dete rmined by the City Manager, these security measures shall include, but are not limited to the following:

1. Preventing individuals from remaining on the premises of the cannabis retailer if they are not engaging in an activity directly related to the permitted operations of the cannabis retailer.

2. Establishing limited access areas accessible only to authorized cannabis retailer personnel.

3. All cannabis and cannabis products shal l be stored in a secured and locked room, safe, or vault. All cannabis and can nabis products shall be kept in a manner designed to prevent diversion, theft, and loss.

4. Installing twenty-four-hour security surveillance cameras of at least HD- quality to monitor all entrances and exits to and from the premises, all interior spaces within the cannabis retailer, which are open and accessible to the public, all interior spaces where cannabis, cash or currency is being stored for any period of time on a regular basis, and all interior spaces where diversion of cannabis could reasonably occur.

The cannabis retailer shall be responsible fo r ensuring that the security surveillance camera's footage is remotely accessible by th e City Manager, and that it is compatible with the City's software and hardware . Video recordings shall be maintained for a City Council Regular Meeting - Page 245 of 267
26 minimum of ninety (90) days and shall be ma de available to the City Manager upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis retailer.

5. Sensors shall be installed to detect entry and exit from all secure areas.

6. Panic buttons shall be installed in all cannabis retailers.

7. Having a professionally installed, maintained, and monitored alarm system.

8. Any bars installed on the windows or the doors of the cannabis retailer shall be installed only on the interior of the building.

9. The premises shall be live monitored twenty-four (24) hours a day unless the cannabis retailer has an alternative security program authorized by the City Manager.

Security personnel must be licensed by the State Bureau of Security & Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, which shall not be unreasonably withheld.

10. Additional security measures may be added through the review of a retail cannabis business permit application.
b. Each cannabis retailer shall identify a designated security representative or liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures and/or operational issues. c. Each cannabis retailer (including as part of the retail cannabis business permit application process) shall have a storage and transportation plan and currency management plan, which describes in detail the procedures for safely and securely storing, disposing and transporting all cannabis, cannabis products, and any currency. d. The cannabis retailer shall cooperate wi th the City whenever the City Manager makes a request, upon reasonable notice to the cannabis retailer, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter 4-35. e. A cannabis retailer shall notify the City Manager within twenty-four (24) hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

2. Diversion, theft, loss, or any criminal activity involving the cannabis retailer or any agent or employee of the cannabis retailer.

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27 3. The loss or unauthorized alteration of records related to cannabis and cannabis products or registering customers or employees and/or agents of the cannabis retailer.

4. Any other breach of security.
4-35.16: Restriction on Alcohol and Tobacco Sales.

No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis retailer. 4-35.17: Fees and charges.
a. No person may commence or continue any cannabis retail sales in the City without timely paying in full all fees and charges requ ired for the operation of a cannabis retail sales. Fees and charges associated with the operation of such activity shall be established by resolution of the City Council which may be amended from time to time. b. All cannabis retailers authorized to oper ate under this Chapter 4-35 shall pay all sales, use, business and other applicable taxe s, and all license, registration, and other fees required under federal, State, and local law. Each cannabis retailer shall cooperate with City with respect to any reasonable request to audit the cannabis retailer’books and records for the purpose of verifying compliance with this Section 4-35.20, including, but not limited to, a verification of the amount of taxes required to be paid during any period. 4-35.18: General operating requirements.
a. Cannabis retailers may operate only duri ng the hours specified in the retail cannabis business permit issued by the City and must comply with State law at all times. b. Cannabis shall not be consumed on th e premises of any cannabis retailer. c. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a retail cannabis business permit or on any of the vehicles owned or used as part of the cannabis retailer.

No outdoor storage of cannabis or cannabis products is permitted at any time. d. Each cannabis retailer shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the cannabis retailer including, but not limited to, such matters as cannabis tr acking, inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the City. The cannabis retailer shall ensure that such information is compatible with the City ’s record- keeping systems as well as the State Mandated Track and Trace requirements and systems. In addition, the system must have the capability to produce historical City Council Regular Meeting - Page 247 of 267
28 transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager prior to being used by a permittee. e. All cannabis and cannabis products sold and/or distributed shall be cultivated, manufactured, and distributed by licensed fa cilities that maintain operations in full conformance with the State and local regulations. The packaging and labeling of cannabis and cannabis products shall comply at all times with State law. f. There shall not be a physician located in any cannabis retailer at any time for the purpose of evaluating patients for th e issuance of a medicinal cannabis recommendations.
g. Each cannabis retailer shall provide th e City Manager with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. h. Signage and Notices.

1. In addition to the requirements other wise set forth in this Section 4-35.18, business identification signage for a cannabis retailer shall conform to the requirements of the City Municipal Code, including, but not limited to, seeking the issuance of a City sign permit.

2. No signs placed on the premises of a cannabis retailer shall obstruct any entrance or exit to the building or any window.

3. Each entrance to a cannabis retailer shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises, or in the areas adjacent to the premises, is prohibited.

4. The entrance to the cannabis retailer shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the cannabis retailer, other than as lawful customers permitted under State law.
i. Other than as lawful customers permitted under State law in the case of retailers, individuals under the age of twenty-one (21) years shall not be allowed on the premises of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer.

It shall be unlawful and a violation of this Chapter 4-35 for any person to employ any person at a cannabis retailer who is not at least twenty-one (21) years of age. j. Odor control devices and techniques shall be incorporated in all cannabis retailers to ensure that odors from cannabis are not dete ctable off-site. Cannabis retailers shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated City Council Regular Meeting - Page 248 of 267
29 inside the cannabis retailer that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis retailer. k. The original copy of the retail cannabis business permit issued by the City pursuant to this Chapter 4-35 and the City issued business license shall be posted inside the cannabis retailer in a location readily visible to the public. l. Pursuant to Sections 11105(b)(11) and 13 300(b)(11) of the State Penal Code, which authorizes City authorities to access State and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by tr ansmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, or volunteer of the cannabis retailer must submit fingerprints and other information deemed necessary by the City Manager for a background check. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which requires that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a retail cannabis business permit unless they have first cleared the background check, as determined by the City Manager, as required by this Chapter 4-35. A non-refundable fee for the cost of the background investigation, wh ich shall be the actual cost to the City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a retail cannabis business permit is submitted. m. The cannabis retailer shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. n. Within sixty (60) days of licensure, for a permittee with twenty (20) or more employees, the permittee shall attest to the City that the permittee has entered into a Labor Peace Agreement and will abide by the terms of the Agreement. The permittee shall submit a copy of the page of the Labor Peace Agreement that contains the signatures of the labor representative and the applicant. For permittees with less than twenty (20) employees who have not yet entered into a Labor Peace Agreement, the permittee shall provide a notarized statement ind icating that the applicant will enter into and abide by the terms of a Labor Peace Agreement within thirty (30) days after employing twenty (20) employees. If an attestation that the permittee is party to a Labor Peace Agreement, and a copy of the page of the Labor Peace Agreement that contains the signatures of the labor representative was submitted to the City by the permittee as part of the application process, that will meet this obligation.

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30 o. Cannabis retailers shall implement a workforce plan that includes at least the following provisions:

1. Commitment for thirty (30) percent of emp loyees to be local hires; this local hiring requirement is satisfied when a cannabis retailer shows that it has either hired or made a good faith effort to hire bona fide residents of the City or persons that may establish residency after initial employment with the permittee;

2. Commitment to offer apprenticeships and/or compensation for continuing education in the field of cannabis retail sales; and

3. Paying a living wage to employees. “Living wage” means compensation equivalent to $20 per hour inclusive of benefits but excluding tips. p. It shall be unlawful for a cannabis retail er to discriminate in any manner or take adverse action against any employee in retali ation for exercising rights protected under this Chapter 4-35 or City or State law. These rights include, but are not limited to (1) the right to file a complaint or inform any pe rson about any party’s alleged noncompliance with this Chapter 4-35 or City or State law and (2) the right to inform any person of his or her potential rights under this this Chapter 4- 35 or City or State law and to assist him or her in asserting such rights. Protections under this this Chapter 4-35 or City or State law shall apply to any employee who mistakenly, but in good faith, alleges noncompliance with this this Chapter 4-35 or City or State law. Taking adverse action against an employee within ninety (90) days of the employee’s exercise of rights protected under this Chapter 4-35 or City or State law shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.
4-35.19: Additional Operational Requirements in General.

The City Manager may, pursuant to Section 4-35.22, develop additional cannabis retailer operational requirements or regulations for the retail sale of cannabis and cannabis products in the City as are determined to be necessary to protect the public health, safety, and welfare.
4-35.20: Additional Operating Requirements.
a. Retailers and the operation thereof shall comply with State law at all times. b. Prior to dispensing medicinal cannabi s or medicinal cannabis products to a qualified patient, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identification card as described in Sections 11362.71 City Council Regular Meeting - Page 250 of 267
31 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven (7) years.
c. Prior to dispensing cannabis or cannab is products to an adult-use customer, a retailer shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years. d. All restroom facilities shall remain lock ed and under the control of managers onsite. e. A retailer shall notify customers (verball y or by written agreement) and by posting of a notice or notices conspicuously in at least 15-point type within the permitted premises that state as follows:

1. “The sale or diversion of cannabis or cannabis products without a license issued by the City of Lynwood is a violati on of State law and the Lynwood Municipal Code.”

2. “Secondary sale, barter, or distributio n of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest."

3. “Customers must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance."

4. “WARNING: The use of cannabis or cannabis products may impair a person's ability to drive a motor vehicle or operate heavy machinery.”

5. “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis- derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer and reproductive harm.”
4-35.21: Additional Operating Requirements For Delivery. a. Delivery shall comply with State law at all times.
b. Security plans developed pursuant to this Chapter 4-35 shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.
c. A retailer shall facilitate the delivery of cannabis or cannabis products with a technology platform owned by or licensed to the delivery-only retailer that uses point-of- sale technology to track and database technolog y to record and store the following City Council Regular Meeting - Page 251 of 267
32 information for each transaction involving the exchange of cannabis or cannabis products between the retailer and customer:

1. The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;

2. The identity of the customer receiving cannabis or cannabis products from the permittee;

3. The type and quantity of cannabis or cannabis products dispensed and received;

4. The gross receipts charged by the permittee and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received; and

5. The location or address where the sale or retail sale took place or closed. d. A permittee shall maintain a database an d provide a list of the individuals and vehicles authorized to conduct delivery, and a copy of the valid State driver’s license issued to the driver of any such vehicle on behalf of the retailer to the City Manager. e. Individuals making deliveries of cannabi s or cannabis products on behalf of the retailer shall maintain a physical copy of the delivery request (and invoice) and shall make it available upon the request of agents or employees of the City requesting documentation.
f. During delivery, a copy of the permittee ’s retail cannabis business permit and State license shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the City requesting documentation. g. A retailer shall only permit or allow deliv ery of cannabis or cannabis products in a vehicle that is (1) insured at or above the legal requirement in the State; (2) capable of securing (locking) the cannabis or cannabis products during transportation; (3) capable of being temperature controlled if perishabl e cannabis or cannabis products is being transported; and (4) does not display advertis ing or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a retailer.
h. A retailer shall facilitate deliveries with a technology platform owned by or licensed to the retailer that uses global posit ioning system technology to track, and database technology to record and store the following information:

City Council Regular Meeting - Page 252 of 267
33 1. The time that the individual conducting delivery on behalf of the retailer departed the licensed premises.

2. The time that the individual conducting delivery on behalf of the retailer completed delivery to the customer.

3. The time that the individual conducting delivery on behalf of the retailer returned to the licensed premises.

4. The route the individual conducting delivery on behalf of the retailer traveled between departing and returning to the licensed premises to conduct delivery.

5. For each individual delivery transaction, the identity of the individual conducting deliveries on behalf of the retailer.

6. For each individual delivery transaction, the vehicle used to conduct delivery on behalf of the retailer.

7. For each individual delivery transaction, the identity of the customer receiving cannabis or cannabis products from the retailer.

8. For each individual delivery transaction, the type and quantity of cannabis or cannabis products dispensed and received.

9. For each individual delivery transaction, the gross receipts charged by the retailer and received by the individual conducti ng deliveries on behalf of the retailer for the cannabis or cannabis products dispensed and received. i. The individual making deliveries on behalf of the retailer shall personally verify for each individual delivery transaction the ident ity of the customer receiving cannabis or cannabis products from the retailer and (1) for medicinal cannabis or medicinal cannabis products to a qualified patient, the age and all necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years and obtain verification from the recommending physician that the pe rson requesting medicinal cannabis or medicinal cannabis products is a qualified patient, and shall maintain a copy of the physician recommendation or identificatio n card as described in Sections 11362.71 through 11362.77 of State Health & Safety Code, as may be amended from time to time, on site for period of not less than seven (7) years or (2) for cannabis or cannabis products to an adult-use customer, age and all necessary documentation of each customer to ensure the customer is not under the age of twenty-one (21) years. j. Within one-hundred-eighty (180) days following the effective date of this Chapter, commercial cannabis businesses conducting delivery pursuant to Chapter 4-34 of the City Municipal Code shall comply with the requirements of this Section 4-35.21.

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34 4-35.22: Promulgation of Regulations, St andards, and Other Legal Duties. a. Consistently with stated requirements of this Chapter 4-35 (and in particular not to repeal or constructively repeal this Chapter 4-35), in addition to any regulations adopted under State law, the City Manager is authorized to establish any additional rules, regulations, and standards governing the issu ance, denial, or renewal of retail cannabis business permits, the ongoing operation of cannabis retailers, and the City’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter 4-35.
b. Such regulations shall be published on the City ’s website. c. Regulations promulgated by the City Manager shall become effective upon date of publication. Cannabis retailers shall be required to comply with all State and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.
4-35.23: Community Relations.
a. Each cannabis retailer shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis retailer can be provided. Each cannabis retailer shall also provide the above information to all businesses and residences, in the City, located within one hundred and fifty (150) feet of the cannabis retailer. Such community relations contact shall respond to any complaints within forty-eight (48) hours of receipt of such complaints. b. During the first year of operation pursu ant to this Chapter 4-35, the owner(s), manager(s), and community relations representative from each cannabis retailer holding a retail cannabis business permit issued pursuant to this Chapter 4-35 shall attend a quarterly meeting with the City Manager and other interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter 4-35. After the first year of operation, the owner(s), manager(s), and community relations representative from each such cannabis retailer shall meet with the City Manager when and as requested by the City Manager.
c. Cannabis retailers to which a retail cann abis business permit is issued pursuant to this Chapter 4-35 shall develop and make available to youth organizations and educational institutions a public education plan that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction.
4-35.24: Fees Deemed Debt To City.

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35 The amount of any fee, cost, or charge im posed pursuant to this Chapter 4-35 shall be deemed a debt to the City that is recoverable via authorized processes as set forth in the City Municipal Code or available through any court of competent jurisdiction. 4-35.25: Permittee, owner, and property owner responsible for violations. a. Each permittee and each owner and each manager of the permittee (and each individual owner and each individual manager of an owner or manager of the permittee) shall be responsible for all violations of the laws of the State or of the regulations and/or the ordinances of the City occurring within th e City or in or about the premises of the cannabis retailer, if committed by the permittee or any employee or agent of the permittee and whether or not said violations occur wi thin the permittee, owner, or manager ’s presence.
b. No person may en gage in any cannabis retail sales wi thin the City unless the person is in compliance with the requirements of this Chapter 4-35. c. It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City; (2) that does not have a valid State license; (3) that does not have any other app licable approvals, including, but not limited to, a building permit and City business license; or (4) that is not currently in compliance with all applicable State and local laws and regulations pertaining to the cannabis retail sales. Property owners shall have strict liability for any cannabis retail sales at any location, structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis business permit issued by the City or (2) that does not have a valid State license. 4-35.26: Inspection and Enforcement.
a. The City Manager or designee(s) charged with enforcing the provisions of the City Municipal Code, or any provision thereof, may enter the location of a cannabis retailer at any time, without notice, and inspect the location of any cannabis retailer as well as any recordings and records required to be maintained pursuant to this Chapter 4-35 or under applicable provisions of State law.
b. It is unlawful for any person having responsibility over the operation of a cannabis retailer, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings, or other documents required to be maintained by a cannabis retailer under this Chapter 4-35 or under State or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis retailer under this Chapter 4-35 or under State or local law.

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36 c. The City Manager or designee(s) charged with enforcing the provisions of this Chapter 4-35 may enter the location of a ca nnabis retailer at any time during business hours and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City shall be logged, recorded, and maintained in accordance with the City law enforcement standards for evidence. 4-35.27: Concurrent Regulation with the State.

It is the stated intent of this Chapter 4-35 to regulate cannabis retail sales in the City concurrently with the State.
4-35.28: Violations Decl ared a Public Nuisance.

Each and every material violation of the provisions of this Chapter 4-35 is hereby deemed unlawful and a public nuisance subject to all remedies and enforcement measures authorized by the City Municipal Code.
4-35.29: Each Violation a Separate Offense.

Each and every violation of this Chapter 4-35 shall constitute a separate violation and shall be subject to all remedies and enforce ment measures authorized by the City Municipal Code. Additionally, as a nuisance per se, any material violation of this Chapter 4-35 shall be subject to injunctive relief, any retail cannabis business permit issued pursuant to this Chapter 4-35 being deemed null and void, disgorgement, and payment to the City of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney’sfees, and any other relief or remedy available at law or in equity. The City may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the cannabis retailer or persons related to, or associated with, the cannabis retail sales. Addi tionally, when there is determined to be an imminent threat to public health, safety or welfare, the City Manager or designee(s), may take immediate action to temporarily suspend a retail cannabis business permit issued by the City, pending a public hearing before the City Council. 4-35.30: Criminal Penalties.

Each and every material violation of the pr ovisions of this Chapter 4-35 may be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed five thousand dollars ($5,000.00) or imprisonment in the County jail for a period of not more than six (6) months, or by both such fine and imprisonment. Each day a material violation is committed or permitted to continue shall constitute a separate offense. 4-35.31: Remedies Cumulati ve and Not Exclusive.

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37 The remedies provided herein are not to be c onstrued as exclusive remedies. The City is authorized to pursue any proceedings or remedies provided by law.

SECTION 5. Section 4-34.1 (Purpose) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:
a. The purpose of this Section is to regulate all commercial cannabis activity in the City of Lynwood, as defined in Section 26001 of the California Business and Professions Code, to the extent authorized by stat e law and in a manner designed to minimize negative impact on the City, and to promote the health, safety, morals, and general welfare of residents and businesses within the City.
b. This Section is further adopted, establ ished, and amended pursuant to the specific authority granted to the City of Lynwood in Section 7 of Article XI of the California Constitution and Division 10 of the Cali fornia Business and Professions Code, commencing with Section 26000. These regulations shall govern all commercial cannabis activity that occurs within the jurisdiction of the City.

SECTION 6. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:
n. Licensed premises means the premises, consisting of a single or immediately adjoining parcel(s) as identified by vali d street address and assessor parcel number, specified in an application for a permit under this chapter, which are owned or in possession of the applicant or licensee and within which the applicant or licensee is applying for authorization to cultivate, manufacture, distribute, test, or is applying for multiple permitted uses within the same premises, in accordance with the provisions of this Chapter, the MAUCRSA, any development agreement approved by City Council, and any rules adopted pursuant thereto, except that no storefront dispensary, as specified in se ction 25-200-1, shall be permitted within the city.

SECTION 7. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:
t. Commercial cannabis business means any person engaged in commercial cannabis activity but excludes cannabis retailers permitted and operating under Chapter 4-35 of the City Municipal Code.

SECTION 8. Section 4-34.2 (Definitions) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:

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38 y. Permit means authorization to conduct commercial cannabis activity operate a commercial cannabis business pursuant to this Chapter, state law, and upon the issuance of an occupancy permit and business license by the City.

SECTION 9. Section 4-34.4 (Permitted Use) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows:
b. All persons who are engaged in operate or who are attempting to engage in commercial cannabis activity operate a commercial cannabis business in any form shall do so only in strict compliance with the terms, conditions, limitations and restrictions of the MAUCRSA, the provisions of this section, and all other applicable state and local laws and regulations.

SECTION 10. Section 4-34.6 (Permitted Zones – Distance and Other Conditions For Approval) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows
e. Nonconforming Use. Any commercial cannabis business, dispensary of medical or adult use cannabis, or storefront cannabi s retailer established or operating in the city in violation of this section or th e ban established by Ordinance No. 1632, Section 25-200-1, and Chapter 25 Appendix A of the Lynwood Zoning Code shall not be considered a lawful or permitted nonconforming use, and no such commercial cannabis business shall be eligible for issuance of a commercial cannabis business permit. Furthe r, any such unlawfully established commercial cannabis business shall constitute a public nuisance subject to abatement by the city, pursuant to section 3-13.

SECTION 11. Section 4-34.8 (Changing, Altering, Or Modifying Location) of Chapter 4 (Licensing and Business Regulations) of the City Municipal Code is hereby amended to read as follows
c. Application. The City Council or its designee may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the licensee, and payment of any applicable fee. The licensee must submit all information requested by the Ci ty Council or its designee including, but not limited to, documents that verify the following:

1. The licensee will continue to have exclusive possession of the premises, as changed, by ownership, lease, or rental agre ement, and sole control of all production; and

2. The proposed change conforms to any and all City restrictions related to the time, manner, and place of regulation of the commercial cannabis activity commercial cannabis businesses.

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39 SECTION 12. Sensitive Uses. The City Council finds that the definitions of the sensitive uses (day care centers, public parks, schools, and youth centers) under the amendment to Section 4-35.3 of the City Municipal Code in this Ordinance are subject to some degree of interpretation. However, the City Council also finds that certainty regarding the identification of sensitive uses (day care centers, public parks, schools, and youth centers) under the amendments to Sections 4-35.3 and 4-35.6 of the City Municipal Code in this Ordinance is required to carry out the purpose and intent of this Ordinance so the that People, the City, and prospective applicants can clearly identify where and where not lawful cannabis retailers under this Ordinance may be located. Accordingly and pursuant to the authority delegated by the State to the City Council under Section 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in Section 26054(b) of the State Business & Professions Code, the following sensitive uses (day care centers, public parks, schools, and youth centers) and only the fo llowing sensitive uses (day care centers, public parks, schools, and youth centers) located on the following County Assessor’s Identification Numbers and only the following County Assessor’s Identification Numbers shall be considered under the amendment to Section 4-35.6.a of the City Municipal Code in this Ordinance for the purpose of the initial establishment of cannabis retailers pursuant to the initial iteration of the cannabis retailer applicati on procedure under the amendment to Section 4-35.7 of the City Municipal Code in this Ordinance (to include any review and scoring of any applications pursuant to the objective review criteria and quantitative evaluation scale under the amendment to Section 4-35.7.d of the City Municipal Code in this Ordinance).

Only following the initial iteration of the ca nnabis retailer applicat ion procedure and the initial issuance of retail cannabis business permits under the amendment to Section 4-

35.7 of the City Municipal Code in this Ordinance, may the City Manager (his or her designee(s)) reinterpret the following list of sensitive uses (day care centers, public parks, schools, and youth centers) and County Assessor’s Identification Numbers for the purpose of subsequent iterations of the cannabis retailer application procedure under the amendment to Section 4-35.7 of the City Municipal Code in this Ordinance and change in location applications under the amendment to Section 4-35.12 of the City Municipal Code in this Ordinance.

Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Abbott Preschool Day Care
Center 6186-042-900
Adolfo Medina Park Public Park
6169-014-905, 6169-016-
901, 6169-016-903, 6169-
016-907
B L Harvey School Day Care
Center 6191-011-012
Camphor Tree Park Public Park 6174-009-901
City Council Regular Meeting - Page 259 of 267
40 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Carnation Park Public Park 6170-022-901
Cesar Chavez Middle School School
6191-018-900, 6191-018-
901, 6191-018-902, 6191-
018-903, 6191-018-904,
6191-018-907
Children's Institute / Imperial Courts Day Care
Center 6067-014-902
David's Heart Enrichment Center Day Care
Center 6177-007-001
Dr. Ralph Bunche Middle School School 6150-036-900
Ella Fitzgerald CDC / Drew Child
Development Corporation
Day Care
Center 6150-036-021
Faith and Hope Park Public Park 6150-020-900
Fernwood Avenue Park Project Public Park 6169-002-908
Foster Elementary School School 6184-009-900
Foster State Preschool Day Care
Center 6184-009-900
Fred W. Hosler Middle School School 6173-022-900
Helen Keller Elementary School
6177-001-919, 6177-001-
902, 6177-001-903, 6177-
001-904, 6177-001-906,
6177-001-907, 6177-001-
901, 6177-001-918, 6177-
001-912, 6177-001-917,
6177-001-915, 6177-001-
914, 6177-001-911, 6177-
001-905, 6177-001-916,
6177-001-908, 6177-001-
909, 6177-001-910, 6177-
001-913, 6177-001-920
Helen Keller Preschool Day Care
Center
6177-001-919, 6177-001-
902, 6177-001-903, 6177-
001-904, 6177-001-906,
6177-001-907, 6177-001-
901, 6177-001-918, 6177-
001-912, 6177-001-917,
6177-001-915, 6177-001-
914, 6177-001-911, 6177-
001-905, 6177-001-916,
6177-001-908, 6177-001-
City Council Regular Meeting - Page 260 of 267
41 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
909, 6177-001-910, 6177-
001-913, 6177-001-920
Henning Youth Center Youth Center 6173-007-901, 6173-007- 902
Hollydale Regional Park Public Park
6234-011-275, 6234-011-
007, 6234-011-804, 6234-
014-274, 6234-013-902,
6234-014-800, 6234-014-
901, 6234-014-803, 6234-
014-277, 6234-014-275,
6234-016-900, 6234-016-
803, 6234-016-802, 6234-
016-801, 6234-016-800,
6234-019-270, 6234-019-
006, 6234-019-902, 6234-
019-801, 6234-019-800,
6234-019-802, 6234-019-
903, 6234-019-803, 6236-
009-900, 6236-009-810,
6236-009-807, 6236-009-
808
Imperial Courts Recreation Center Youth Center 6067-013-901 Janie P. Abbott Elementary School School 6186-042-900
Jordan High School School 6046-021-918, 6046-020-
901
Kinder Prep Preschool Center Day Care
Center 6171-016-013
King State Preschool Day Care
Center 6150-025-901
Lincoln Elementary School School 6170-022-900, 6170-022- 902
Lincoln Preschool Day Care
Center
6170-022-900, 6170-022-
902
Lindbergh Children's Center Day Care
Center
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
013-900, 6168-012-905
Lindbergh Elementary School School
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
013-900, 6168-012-905
Lindbergh Preschool Day Care
Center
6168-012-927, 6168-012-
926, 6168-012-902, 6168-
013-900, 6168-012-905
City Council Regular Meeting - Page 261 of 267
42 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Little Pillar Park Public Park 6170-014-901, 6170-014-
907
Los Amigos East Park Public Park 6168-012-906
Los Amigos West Park Public Park 6168-013-901, 6168-013- 902, 6168-012-905
Los Angeles Speech & Language
Therapy Center, Inc.

Day Care
Center 6173-015-041
Lucy Avalos Community Center Youth Center
6189-019-908, 6189-019-
923, 6189-019-916, 6189-
019-917, 6189-019-926
Lugo Elementary School School
6193-002-901, 6193-002-
904, 6193-002-902, 6193-
002-909, 6193-002-906,
6193-002-907, 6193-002-
903, 6193-002-905, 6193-
002-908
Lugo Preschool Day Care
Center
6193-002-901, 6193-002-
904, 6193-002-902, 6193-
002-909, 6193-002-906,
6193-002-907, 6193-002-
903, 6193-002-905, 6193-
002-908
Lynwood Community Center Youth Center 6173-022-901
Lynwood High School School 6174-020-900, 6174-019-
900
Lynwood Natatorium Youth Center 6173-021-900
Madison Elementary School School 6206-027-901
Marco Antonio Firebaugh High
School School
6189-032-900, 6189-023-
900, 6189-023-901, 6189-
023-902, 6189-023-903,
6189-023-904, 6189-023-
914, 6189-023-905, 6189-
023-906, 6189-023-915,
6189-023-907, 6189-023-
908, 6189-023-909, 6189-
023-916, 6189-023-910,
6189-023-911, 6189-023-
917, 6189-023-912, 6189-
023-913, 6189-032-903,
6189-032-904, 6189-032-
901, 6189-032-902, 6189-
City Council Regular Meeting - Page 262 of 267
43 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
032-905, 6189-032-906,
6189-032-909, 6189-032-
907, 6189-032-908
Mark Twain Elementary School School 6174-025-900
Mark Twain Preschool Day Care
Center 6174-025-900
Martin Luther King Elementary
School School 6150-025-901
Mona Park Public Park 6150-025-900, 6150-025-
902
Montara Avenue Elementary School School 6207-004-922, 6207-004- 923
Park Place Early Education Day Care
Center 6186-012-041
Pathway Independent Study School 6173-022-900
Ralph C. Dillis Park Public Park
6237-026-904, 6237-033-
914, 6237-033-904, 6237-
033-915, 6237-033-902,
6237-033-905, 6237-033-
911, 6237-033-913, 6237-
033-918, 6237-033-912,
6237-033-906, 6237-033-
907, 6237-033-916, 6237-
033-917, 6237-033-909,
6237-033-910, 6237-033-
901
Ricardo Lara Linear Park Public Park 6174-001-913
Ritter Elementary School School 6068-020-901
Roosevelt Elementary School School 6191-023-900, 6191-024- 900
Roosevelt Preschool Day Care
Center
6191-023-900, 6191-024-
900
Rosa Parks Elementary School
6174-019-905, 6174-019-
903, 6174-019-907, 6174-
019-904, 6174-019-906,
6174-019-908, 6174-019-
909, 6174-019-901, 6174-
019-902
Rosa Parks Preschool Day Care
Center
6174-019-905, 6174-019-
903, 6174-019-907, 6174-
019-904, 6174-019-906,
City Council Regular Meeting - Page 263 of 267
44 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
6174-019-908, 6174-019-
909, 6174-019-901, 6174-
019-902
Rose Park Public Park 6169-009-900
SAGA Child Development Learning
Academy
Day Care
Center 6173-030-012
San Miguel Catholic School School 6068-008-001, 6068-008- 031
Simon Rodia Continuation School School 6207-001-900, 6207-001- 901
Soleil Academy Charter School School 6174-020-900, 6174-019- 900
South East High School & Middle
School School 6207-001-900, 6207-001-
901
St. Emydius School School
6191-015-027, 6191-015-
021, 6191-015-024, 6191-
015-023
St. Philip Neri School School
6186-014-018, 6186-014-
004, 6186-014-016, 6186-
024-031
Sunshine Day Care Center Day Care
Center 6168-016-014
Thurgood Marshall Elementary
School School 6191-018-907, 6191-018-
905, 6191-018-906
Thurgood Marshall Preschool Day Care
Center
6191-018-907, 6191-018-
905, 6191-018-906
Tiny Treasures Preschool Day Care
Center 6168-008-003
Veterans Memorial Garden Public Park 6187-002-900
Victoria Elementary School School 6209-009-900, 6209-009- 902, 6209-009-901
Vista High School School 6194-031-906
Volunteers of America, Abbott Head
Start
Day Care
Center 6186-042-900
Volunteers of America, Bright Stars
Head Start
Day Care
Center
6173-003-005, 6173-003-
018
Volunteers of America, Greater
Emmanuel Head Start
Day Care
Center 6173-017-025
Volunteers of America, Happy Days
Head Start
Day Care
Center 6186-008-030
City Council Regular Meeting - Page 264 of 267
45 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Washington Elementary School School 6190-012-901, 6193-017- 901
Washington Preschool Day Care
Center
6190-012-901, 6193-017-
901
Weigand Avenue Elementary School School 6066-009-900
Weigand Elementary School Room 6 Day Care
Center 6066-009-900
Will Rogers Children's Center Day Care
Center 6194-016-925
Will Rogers Elementary School School 6194-016-925
Will Rogers Preschool Day Care
Center 6194-016-925
Wilson Elementary School School 6175-008-900
Wilson Preschool Day Care
Center 6175-008-900
Wilson School Park Public Park 6175-006-900
Yvonne Burke-John D. Ham Park Public Park
6189-019-927, 6189-019-
929, 6189-019-928, 6189-
019-924, 6189-019-909,
6189-019-925, 6189-019-
921, 6189-019-911, 6189-
019-915, 6189-019-903,
6189-019-906, 6189-019-
907, 6189-019-904, 6189-
019-913, 6189-019-912,
6189-019-922, 6189-019-
918, 6189-019-910, 6189-
019-919, 6189-019-905,
6189-019-920, 6189-019-
914, 6186-036-912, 6186-
036-913, 6186-036-910,
6186-036-909, 6186-036-
905, 6186-036-906, 6186-
036-900, 6186-036-907,
6186-036-908, 6186-036-
902, 6186-036-901, 6186-
036-903
SECTION 13. Categorically Exempt from CEQA. The City Council find that the actions contemplated by this Ordinance, including the issuance of retail cannabis business permits, are categorically exempt from the California Environmental Quality Act (“CEQA”)under Section 15060(c)(2) and Section 15060(c)(3) of Title 14 of the State Code City Council Regular Meeting - Page 265 of 267
46 of Regulations. Further, the City Council finds that pursuant to Section 4-35.06 of Chapter 4-35 of the City Municipal Code as codified by this Ordinance, cannabis retailers are a use permitted in certain zoning districts within the City. As permitted in those zoning districts, cannabis retailers are similar to already existing permitted general uses in those zoning districts with the only difference being the type of product being delivered or sold.

SECTION 14. Severability. If any provision, section, paragraph, sentence, phrase, or word of this Ordinance is rendered or declared invalid, illegal, or unconstitutional by any final action in a court of competent jurisdiction or by reason or any preemptive legislation, such unconstitutionality illegality or invalidity shall only affect such provision, section, paragraph, sentence, phrase, or word and shall not affect or impair any remaining provisions, sections, paragraphs, sentences, phrases, or words, or the application of this Ordinance to any other person or circumstance , and to that end, the provisions hereof are severable. It is hereby declared to be the intention of the City Council that that this Ordinance would have been adopted had such unconstitutional illegal or invalid provision, section, paragraph, sentence, phrase, or word not been included herein.

SECTION 15. Liberal Construction. This Ordina nce is an exercise of the police power of the City Council to provide for sa fe and regulated access to cannabis and cannabis products, and shall be liberally construed to effectuate that purpose.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lynwood, California this 2nd day of August, 2022. _________________________
Jorge Casanova, Mayor
ATTEST:
____________________________
Maria Quinonez,
City Clerk
APPROVED AS TO FORM:
____________________________
Noel Tapia,
City Attorney
City Council Regular Meeting - Page 266 of 267
47 STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )
I, Maria Quiňonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Ordinance was passed and adopted by the City Council of the City of Lynwood at a meeting held on the 2
nd day of August, 2022.

AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM

SOLACHE AND MAYOR CASANOVA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

________________________
Maria Quiňonez,
City Clerk

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )
I, Maria Qui ňonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Ordinance No. 1751 on file in my office and that said Ordinance was adopted on the date and by the vote therein stated. Dated this 2 nd day of August,
2022.
___________________________
Maria Quiňonez,
City Clerk
City Council Regular Meeting - Page 267 of 267

Lynwood City CouncilNovember 15, 2022

Lynwood City Council
November 15, 2022