RESOLUTION NO. 22-0048
A RESOLUTION OF THE MANHATTAN BEACH CITY COUNCIL CALLING
FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION T O BE HELD ON TUESDAY, NOVEMBER 8, 2022, TO SUBMIT TO THE VOTERS A MEASURE TO (1) REPEAL THE CITY’S EXISTING PROHIBITION OF ALL COMMERCIAL CANNABIS ACTIVITY (2) ALLOW THREE CANNABIS RETAILERS WITHIN MANHATTAN BEACH ( 3) ALLOW THE CITY
COUNCIL DISCRETION TO LEGALIZE OTHER CANNABIS USES , AND (4) IMPOSE OPERATIONAL, DESIGN, AND LOCATION
REQUIREMENTS ON SUCH BUSINESSES; AND DIRECTING THE CITY
ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 8, 2022; and
WHEREAS, an initiative ordinance submitted by a resident has qualified for the ballot to:
(1) repeal the City’s existing prohibition of all commercial cannabis activity and allow the City Council discretion to legalize other cannabis uses; (2) allow a maximum of three cannabis retailers within Manhattan Beach; and (3) impose operation, design, and location requirements on such businesses.
NOW, THEREFORE, THE MANHATTAN BEACH CITY COUNCIL DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Pursuant to state law, the City Council hereby calls and orders a General Municipal Election for the purpose of submitting to the voters the following question:
AN INITIATIVE ORDINANCE TO (1) ALLOW A
MAXIMUM OF THREE CANNABIS RETAILERS IN
MANHATTAN BEACH; (2) REPEAL THE CITY’S
EXISTING PROHIBITION OF ALL COMMERCIAL
CANNABIS ACTIVITY AND ALLOW THE CITY
COUNCIL DISCRETION TO LEGALIZE OTHER
CANNABIS USES; AND (3) IMPOSE OPERATIONAL,
DESIGN, AND LOCATION REQUIREMENTS ON SUCH
BUSINESSES. Shall a measure repealing Manhattan
Beach’s existing prohibition of all commercial cannabis activity; allowing three cannabis retailers within city limits; allowing the Manhattan Beach City Council discretion to legalize other cannabis uses; and imposing operational, design, and location requirements on such businesses,
be adopted?
YES
NO
SECTION 2. The propos ed complete text of the measure submitted to the voters is attached as Exhibit A.
SECTION 3. The vote requirement for the measure to pass is a majority (50%+1) of the votes cast.
SECTION 4. The ballots to be used at the election shall be in form and content as required by law.
SECTION 5. The City Clerk is authorized, instructed and directed to coordinate with the County of Los Angeles Registrar-Recorder/County Clerk to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.
SECTION 6. The vote centers for the election shall be open as required during the identified voting period pursuant to Elections Code Sections 4007 and 14401.
SECTION 7. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.
SECTION 8. Notice of the time and place of holding the election shall be given and the City Clerk is authorized, instructed and directed to give further or additional not ice of the election, in time, form and manner as required by law.
SECTION 9. T he City Attorney’s Impartial Analysis of the ballot measure and the arguments in favor or against the ballot measure shall proceed in accordance with the following:
A) The City Council directs the City Clerk to transmit a copy of the above referenced measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure in accordance with California Elections Code Section 9280. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.
B) Pursuant to California Elections Code Section 9282(a), the person(s) filing an initiative petition may file a written argument in favor of the ordinance, and the legislative body may submit an argument against the ordinance. Persons filing arguments may change or withdraw their arguments until and including the date
fixed by the City Clerk after which no arguments for or against the measure may be submitted to the City Clerk. Pursuant to Elections Code Section 9287, if more than one argument is submitted for or against the measure, the City C lerk shall select one argument in favor and one argument against , giving preference and priority in accordance with Section 9287.
C) The City Council hereby adopts the provisions of Elections Code Section 9285(a) relating to rebuttal arguments.
SECTION 1 0. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
ADOPTED on __________, 2022.
AYES:
NOES:
ABSENT:
ABSTAIN:
HILDY STERN
Mayor
ATTEST:
LIZA TAMURA
City Clerk
EXHIBIT “A”
INITIATIVE ORDINANCE
THE PEOPLE OF THE CITY OF MANHATTAN BEACH DO ORDAIN AS FOLLOWS:
SECTION 1. This measure shall be known and may be cited as the Manhattan BeachCannabis Regulation and Public Safety Measure (the "Measure").
SECTION 2. Purpose and Intent. The purpose and intent of this Measure is toaccommodate the needs of medically-ill persons in need of cannabis for medicinal purposes, asadvised 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 tothe provisions of the Medicinal & Adult-Use Cannabis Regulation & Safety Act (hereinafter,"MAUCRSA"), as may be amended and augmented under State law, while imposing regulationson the conduct of business and use of land to protect the City of Manhattan Beach's (the "City")neighborhoods, residents, and businesses from negative impacts. It is a further purpose andintent of this Measure to regulate the cultivation, manufacturing, processing, testing, distribution,and retail sale and delivery 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 enforcesrules and regulations consistent with State law. In part to meet these objectives, a commercialcannabis business permit shall be required to own or to operate a cannabis business within theCity. Further, this Measure's requirement for a cannabis business to possess commercialcannabis business permit is in addition to any other permits, licenses, and approvals which maybe required to conduct business in the City, and is in addition to any permits, licenses, andapprovals required under State or County of Los Angeles ("County") law.
SECTION 3. Legal Authority. Pursuant to Section 7 of Article Xl of the CaliforniaConstitution, and the provisions of the MAUCRSA, as may be amended and augmented underState law and any subsequent State legislation regarding the same, the City is authorized to adoptordinances that establish standards, requirements, and regulations for local licenses and permitsfor commercial cannabis activity. Except as otherwise provided in this Measure, any standards,requirements, and regulations regarding health and safety, security, and worker protectionsestablished by the State, or any of its departments or divisions, shall be the minimum standardsapplicable to commercial cannabis activity in the City.
SECTION 4. Title 6 (Businesses, Professions and Trades) of the City Municipal Code ishereby amended by adding Chapter 6.30 (Commercial Cannabis Activity) to read as follows:
Chapter 6.30 - COMMERCIAL CANNABIS ACTIVITY
6.30.010 - Commercial Cannabis Activity Prohibited Unless Specifically Authorized.
A. Except as specifically authorized by this Chapter 6.30, to the fullest extent permitted byState law, the City expressly prohibits any and all commercial cannabis activity within theCity. In particular and if allowable under State law, the City hereby expressly prohibits thedelivery of cannabis and cannabis products within the City except by cannabis retailersbased within the City and permitted under this Chapter 6.30. If the City is required byState law to permit the delivery of cannabis and cannabis products by cannabis retailersnot based within the City, such cannabis retailers not based within the City shall berequired to comply with the requirements under this Chapter 6.30, including the Citycommercial cannabis business permit application and approval processes under Section6.30.070. 1 B. Nothing in this Chapter 6.30 shall be construed or interpreted to permit the commercialpossession, furnishing, manufacture, cultivation, distribution, processing, storing,laboratory testing, packaging, labeling, transportation, delivery, or sale of industrial hemp.
C. To the extent expressly authorized in this Chapter 6.30 and Title 10 of the City MunicipalCode, the following types of commercial cannabis activity are permitted in the City, subjectto the satisfaction of all requirements set forth in this Chapter 6.30, Title 10 of the CityMunicipal Code, MAUCRSA, and all other applicable State and local laws, rules, andregulations:
1. Retail sales
2. Cultivation
3. Manufacturing
4. Distribution
5. Testing laboratory
D. Microbusinesses are not a type of commercial cannabis activity permitted to be basedwithin the City pursuant to this Chapter 6.30 and Title 10 of the City Municipal Code.
E. To the extent that the following activities are permitted by State law, nothing in this Chapter6.30 shall prohibit a person twenty-one (21) years of age or older from:
1. Possessing, processing, purchasing, transporting, obtaining, or giving away topersons twenty-one (21) years of age or older, without compensation whatsoever,not more than twenty-eight and one-half (28.5) grams of cannabis not in the formof concentrated cannabis;
2. Possessing, processing, purchasing, transporting, obtaining or giving away topersons twenty-one (21) years of age or older, without compensation whatsoever,up to eight (8) grams of cannabis in the form of concentrated cannabis;
3. Possessing, transporting, purchasing, obtaining, using, manufacturing, or givingaway cannabis accessories to persons twenty-one (21) years of age or olderwithout compensation whatsoever; or
4. Engaging in the indoor cultivation of six (6) or fewer live plants within a singleprivate residence or inside an accessory structure located upon the grounds of aprivate residence that is fully enclosed and secured, to the extent such cultivationis authorized by Sections 11362.1 and 11362.2 of the State Health & Safety Code,as the same may be amended from time to time. However, outdoor or opencultivation of cannabis is prohibited.
6.30.020 - Compliance with Laws.
It is the responsibility of the owners, managers, officers, employees, and agents of any cannabisbusiness to ensure that it is operating in a manner compliant with all applicable State and local 2 laws and any regulations promulgated thereunder.
construed as in conflict with State law.
6.30.030 - Definitions.
Nothing in this Chapter 6.30 shall be
When used in this Chapter 6.30, the following words shall have the meanings ascribed to themas set forth herein. Any reference to State statutes includes any regulations promulgatedthereunder and is deemed to include any successor or amended version of the referenced statuteor regulatory provision. "Applicant" means the person applying for the commercial cannabis business permit under thisChapter 6.30 (not the owners or the managers of the applicant). "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabisruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified,extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture,or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin,whether crude or purified, obtained from cannabis. "Cannabis" also means marijuana as definedby Section 11018 of the State Health & Safety Code. Cannabis does not include the mature stalksof the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any othercompound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except theresin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapableof germination. For the purpose of this Chapter 6.30, cannabis does not mean industrial hempas that term is defined by Section 81000 of the State Food & Agricultural Code or Section 11018.5of the State Health & Safety Code. "Cannabis business" means a person engaged in commercial cannabis activity. "Cannabis product" means cannabis that has undergone a process whereby the plant materialhas been transformed into a concentrate, including, but not limited to, concentrated cannabis, oran edible or topical product containing cannabis or concentrated cannabis and other ingredients. "Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section11362.7 of the State Health & Safety Code. "Chief of Police" means the Police Chief of the City of Manhattan Beach Police Department or hisor her designee(s). "City" means the City of Manhattan Beach.
"City Attorney" means the City Attorney of the City of Manhattan Beach or his or her designee(s). "City Council" means the City Council of the City of Manhattan Beach. "City Manager" means the City Manager of the City of Manhattan Beach or his or her designee(s). "Commercial cannabis activity" has the same meaning as that term is defined under MAUCRSAand includes the cultivation, possession, manufacture, distribution, processing, storing, laboratorytesting, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis productsas regulated under this Chapter 6.30. 3 "Commercial cannabis business permit" means a regulatory license issued by the City pursuantto this Chapter 6.30 to a cannabis business and is required before any commercial cannabisactivity may be conducted in the City and is made expressly contingent upon the cannabisbusiness's ongoing compliance with all of the requirements of this Chapter 6.30 and anyregulations adopted by the City governing the commercial cannabis activity at issue. "Cannabis concentrate" means cannabis that has undergone a process to concentrate one ormore active cannabinoids, thereby increasing the product's potency. Resin from granulartrichomes from a cannabis plant is a concentrate for purposes of this Chapter 6.30. A cannabisconcentrate is not considered food, as defined by Section 109935 of the State Health & SafetyCode, or drug, as defined by Section 109925 of the State Health & Safety Code. "County" means the County of Los Angeles.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing,grading, or trimming of cannabis. "Cultivation site" means a location where cannabis is planted, grown, harvested, dried, cured,graded, or trimmed, or a location where any combination of those activities may occur. Cultivationsites must be licensed by the City and State pursuant to this Chapter 6.30. "Customer" means a natural person twenty-one (21) years of age or over or a natural personeighteen (18) years of age that is a qualified patient or primary caregiver. "Day care center" or "childcare facility" means a facility, other than a family day care home, servinginfant, toddler, preschool, and school age children licensed by the State Department of SocialServices pursuant to Section 1596.951 of the State Health & Safety Code. Pursuant to theauthority 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 6.30 shall override thedefinition of "day care center" in MAUCRSA at Section 26001 of the State Business & ProfessionsCode. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer."Delivery" also includes the use by a retailer of any technology platform owned and controlled bythe retailer (or a microbusiness engaging in retail sales). "Dispensary" or "retailer" means a location where cannabis, cannabis products, or devices for theuse of cannabis or cannabis products are offered, either individually or in any combination, forretail sale, including an establishment that delivers cannabis and cannabis products. "Dispensing" or "retail sale(s)" means any activity involving the retail sale of cannabis or cannabisproducts from a retailer (or a microbusiness engaging in retail sales). "Distribution" means the procurement, sale, and transport of cannabis and cannabis productsbetween persons lawfully conducting commercial cannabis activity under this Chapter 6.30 andState law. "Distributor" means a person engaged in the distribution ofcannabis and cannabis products, whois based within the City, and licensed by the City and State pursuant to this Chapter 6.30. 4 "Edible cannabis product" means a cannabis product that is intended to be used, in whole or inpart, for human consumption, including, but not limited to, chewing gum, but excluding productsset 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 StateHealth & 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 ofthe State Business & Professions Code solely because it contains cannabis. "Employee" means each natural person employed by a cannabis business who is a part-time, full-time, temporary, or permanent employee. "Gross receipts" means, except as otherwise specifically provided herein, whether designated asa sales price, royalty, rent, commission, dividend, or other designation, the total amount (includingall receipts, cash, credits, and property of any kind or nature) received or payable for sales ofgoods, wares, or merchandise without any deduction therefrom on account of the cost of theproperty 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 collectedfrom the consumer or purchaser; C. Such part of the sale price of any property returned by purchasers to the seller as refundedby the seller by way of cash or credit allowances or return of refundable depositspreviously 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'sbusiness; E. Cash value of sales, trades, or transactions between departments or units of the samebusiness; F. Whenever there are included within the gross receipts amounts which reflect sales forwhich credit is extended and such amount proved uncollectible in a given year, thoseamounts may be excluded from the gross receipts in the year they prove to beuncollectible; provided, however, if the whole or portion of such amounts excluded asuncollectible are subsequently collected, they shall be included in the amount of grossreceipts for the period when they are recovered; and G. Receipts of refundable deposits, except that such deposits when forfeited and taken intoincome of the business shall not be excluded when in excess of one dollar. "Labor peace agreement" means an agreement between a cannabis business and any bona fidelabor organization that, at a minimum, protects the City's proprietary interests by prohibiting labororganizations and members from engaging in picketing, work stoppages, boycotts, and any othereconomic interference with a cannabis business. This agreement means that the cannabisbusiness has agreed not to disrupt efforts by the bona fide labor organization to communicatewith, and attempt to organize and represent, the cannabis business's employees. The agreementshall provide a bona fide labor organization access at reasonable times to areas in which the 5 cannabis business's employees work, for the purpose of meeting with employees to discuss theirright to representation, employment rights under State law, and terms and conditions ofemployment. "Licensing authority" means a State agency responsible for the issuance, renewal, orreinstatement of State license, or a State agency authorized to take disciplinary action against aState licensee. "Liquid assets" means assets that can be readily converted into cash. "Liquid assets" include, butare 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 savingsbonds. "Liquid assets" does not mean household items, furniture and equipment, vehicles,cannabis or cannabis products, business inventory, or real property and improvements thereto. "Live plants" means living cannabis flowers and plants, including seeds, immature plants(including unrooted clones), and vegetative stage plants. "Manager" means any individual who will be participating in the direction, control, or managementof an applicant or a permittee, including but not limited to, any (i) manager or managing memberor other officer of a limited liability company or (ii) president, chief executive officer, secretary,treasurer, chief financial officer, or other officer of a for profit corporation. "Manufacture(ing)" means to compound, blend, extract, infuse, or otherwise make or preparea cannabis product. "Manufacturer" means a person that conducts the production, preparation, propagation, orcompounding of cannabis or cannabis products either directly or indirectly or by extractionmethods, or independently by means of chemical synthesis, or by a combination of extraction andchemical synthesis at a fixed location that packages or repackages cannabis or cannabis productsor labels or relabels its container. A manufacturer may also be a person that infuses cannabis inits products but does not perform its own extraction. "Manufacturing site" means a location where cannabis or cannabis products, directly or indirectlyare produced, prepared, propagated, or compounded by extraction methods, independently bymeans of chemical synthesis, or by a combination of extraction and chemical synthesis. "Marijuana" means "cannabis" as that term is defined in this Chapter 6.30. "MAUCRSA" means Division 10 (commencing with Section 26000) of the State Business andProfessions Code and any regulations promulgated thereunder. "Measure" means the Manhattan Beach Cannabis Regulation and Public Safety Measure. "Microbusiness" means a cannabis business engaged in at least three (3) of the followingcommercial cannabis activities: cultivation (on areas less than ten thousand (10,000) square feet),manufacturing (without the use of volatile solvents), distribution, or retail sale. "Owner" means any of the following:
A. A person owning in the aggregate equity interests representing twenty (20) percent ormore of the voting power of all outstanding equity in the applicant or a permittee; 6 B. The president, chief executive officer, secretary, or treasurer / chief financial officer of anonprofit 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 oneindividual person designated as an "owner" for the purpose of compliance with thisChapter 6.30, including the review and evaluation of any commercial cannabis businesspermit application. "Panic button" means an emergency electronic contact device which allows an employee in theevent of an ongoing crime, threat, or other emergency to alert a security guard responsible forproviding immediate on-scene assistance. "Patient" or "qualified patient" means a natural person who is entitled to the protections of Section11362.5 of the State Health & Safety Code and includes a person issued an identification cardissued pursuant to Article 2.5 of Chapter 6.30 of Division 10 of the State Health & Safety Code. "Permittee" means the holder of a valid, City-issued commercial 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 othergroup 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 11362.7of the State Health & Safety Code. "Premises" means the designated structure or structures and land specified in the commercialcannabis business permit application that is owned, leased, or otherwise held under the controlof the applicant or permittee where the commercial cannabis activity will be or is conducted. Thepremises shall be a contiguous area and shall only be occupied by one permittee. "School" means as evidenced by the State Department of Education school directory, a publicschool instructing children in grades kindergarten through 12, as authorized by the StateDepartment of Education or a private school instructing children in grades kindergarten through12 that has filed a verification of private school affidavit with the State Department of Educationpursuant to Section 33190 of the State Education Code, excluding any private school in whicheducation is primarily conducted in a private home. Pursuant to the authority delegated by theState to the City under Section 26054(b) of the State Business & Professions Code, this definitionof "school" under this Chapter 6.30 shall override the definition of "school" used in MAUCRSA orSection 11362.768 of the Health & Safety Code. "State" means the State of California.
"State license" means a permit or license issued by the State, or one of its departments ordivisions, under MAUCRSA and any subsequent State legislation regarding the same to engagein commercial cannabis activity. "Testing laboratory" means a laboratory, facility, or entity in the City that offers or performs testsof cannabis or cannabis products and that is both of the following:
7 A. Accredited by an accrediting body that is independent from all other persons involved inthe cannabis industry in the State; and B. Licensed by the Bureau of Cannabis Control and is owned and operated by a personissued a valid commercial cannabis business permit for laboratory testing from the City. "Topical cannabis" means a cannabis product intended for external application and/or absorptionthrough the skin. A topical cannabis product is not considered a drug as defined by Section109925 of the State Health & Safety Code. "Volatile solvent" means a solvent that is or produces a flammable gas vapor that, when presentin the air in sufficient quantities, will create explosive or ignitable mixtures. "Youth center" means (A) any public or private facility that is primarily used to host recreational orsocial activities for minors such as private youth membership organizations or clubs, socialservice teenage club facilities or (B) a park, playground, or recreational area specifically designedto be used by children that may have play equipment installed, including public grounds designedfor athletic activities such as baseball, softball, soccer, or basketball or any similar facility locatedon a public or private school grounds, or on City, County, or State parks. "Youth center" shall notinclude any private martial arts, yoga, ballet, music, or similar studio of this nature nor shall itinclude 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 tothe City under Section 26054(b) of the State Business & Professions Code, this definition of "youthcenter" under this Chapter 6.30 shall override the definition of "youth center" in MAUCRSA atSection 26001 of the State Business & Professions Code.
6.30.040 - Commercial Cannabis Business Permit Required.
A. No person shall operate a cannabis business or engage in commercial cannabis activitywithin the City unless such business or activity is currently in compliance with all applicableState and local laws, rules, and regulations and the cannabis business has:
1. A valid City business license to conduct such business or activity;
2. A valid commercial cannabis business permit issued by the City pursuant to thisChapter 6.30 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 Community DevelopmentDepartment to conduct the commercial cannabis activity at the premises identifiedin the commercial cannabis business permit.
B. A separate commercial cannabis business permit shall be required for each type ofcommercial cannabis activity listed in Section 6.30.010.C whether conducted in orengaged on the same premises or on different premises.
6.30.050 - Maximum Number and Type of Authorized Cannabis Businesses Permitted. 8 A. The number of commercial cannabis business permits for retailers based within the Cityshall be no more than three (3).
B. The number of commercial cannabis business permits for retailers (includingmicrobusinesses engaged in retail sates) based outside the City to engage in deliverywithin the City shall be zero (0).
C. The maximum number of commercial cannabis business permits issued for cannabisretailers based within the City or outside the City (including microbusinesses engaged inretail sales) may not be amended by the City Council or regulations promulgated by theCity Manager pursuant to this Chapter 6.30. However, the City Council may and shallincrease the maximum number of commercial cannabis business permits issued forretailers based within the City or outside the City (including microbusinesses engaged inretail sales) if ordered to do so by a court of competent jurisdiction as a judicial remedy.
D. The number of commercial cannabis business permits for cultivation sites, manufacturingsites, distributors, and testing laboratories shall be established by resolution of the CityCouncil, at the sole discretion of the City Council, including the possibility that the numberof commercial cannabis business permits for cultivation sites, manufacturing sites,distributors, and testing laboratories may be zero (0).
6.30.060 - Location and Design Requirements for Cannabis Businesses.
Pursuant to the authority delegated by the State to the City under Section 26054(b) of the StateBusiness & Professions Code and overriding the location and design requirements contained inSection 26054(b) of the State Business & Professions Code, cannabis businesses in the City shallbe subject to the following location and design requirements:
A. Retailers shall be a permitted use by right subject to this Chapter 6.30 on property (1)located more than one-thousand (1,000) feet from any school or youth center, (2) locatedmore than eight-hundred and fifty (850) feet from any day care center, and (3) zoned: CG(General Commercial District), CNE (North End Commercial District), or CD (DowntownCommercial), including any overlay zones, in particular any CZ (Coastal Zone OverlayDistrict) covering the CG (General Commercial District), CNE (North End CommercialDistrict), or CD (Downtown Commercial), but excluding any D (Design Overlay District)covering the CG (General Commercial District), CNE (North End Commercial District), orCD (Downtown Commercial) B. The location and design requirements for cultivation sites, manufacturing sites,distributors, and testing laboratories shall be established by ordinance of the City Council,at the sole discretion of the City Council, including the possibility that cultivation sites,manufacturing sites, distributors, and testing laboratories may not be types of commercialcannabis activity permitted to be based within the City pursuant to this Chapter 6.30 andTitle 10 of the City Municipal Code.
C. The distances specified in this Section 6.30.060 shall be the horizontal distance measuredin a straight line from the parcel tine of the sensitive use to the closest parcel tine of thelot on which the cannabis business is to be located without regard to interveningstructures.
D. Each cannabis business shall:
9 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 business 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 business and its operating characteristicsare not detrimental to the public health, safety, convenience, or welfare of personsresiding, working, visiting, or recreating in the surrounding neighborhood and will not result in the creation of a nuisance.
6.30.070 - Cannabis Retailer Application Procedure.
A. Within forty-five (45) days following the effective date of this Chapter, the City Manager,pursuant to Section 6.30.290, shall, as a ministerial duty, make available the necessaryforms, adopt any necessary application rules for the submission, intake, review, andapproval of commercial cannabis business permit applications for retailers up to themaximum number of commercial cannabis business permits authorized in Section6.30.050.
B. The City Manager shall, as a ministerial duty, cease acceptance of a commercial cannabisbusiness permit application for retailers thirty (30) days after making available thenecessary forms and adopting any necessary application rules for the submission, intake,review, and approval of commercial cannabis business permit applications for retailers.
C. Within thirty (30) days of ceasing the acceptance of commercial cannabis business permitapplication for retailers, the City Manager shall, as a ministerial duty, review timelysubmitted retailer applications for the following minimum requirements:
1. Payment of an application fee established by resolution of the City Council withinforty-five (45) days following the effective date of this Chapter to cover all costs incurred by the City in the application process;
2. Sufficient evidence of the legal right to use the proposed property for the proposeduse, to include a lease, sublease, purchase agreement, assignment of purchaseagreement, or lease or purchase option, in the name of the applicant, which mayinclude nominal consideration and be contingent upon issuance of a commercialcannabis business permit or other approvals. The City shall only consider oneapplicant per property address or County Assessor's Identification Number. In theevent that more than one applicant applies for a commercial cannabis businesspermit application at a given property address or a given County Assessor'sIdentification Number, the City Manager shall, as a ministerial duty, only acceptthe commercial cannabis business permit application with the earliest datedevidence of the legal right to use the proposed property for the proposed use in the name of the applicant;
10 3. Sufficient evidence to demonstrate that the proposed property complies withlocation and zoning requirements in Section 6.30.060;
4. Proof that an owner or owners of the applicant with an aggregate ownershipinterest of forty (40) percent or more has served as an owner or owners with anaggregate ownership interest of forty (40) percent or more of (or is an owner as aresult of being the chief executive officer of a nonprofit entity of) one or more othercannabis retailers (including microbusinesses with a retail sales component)licensed by a city, county, or state since at least March 1, 2019;
5. Proof of funds showing that the applicant has access and control of over$400,000.00 in liquid assets, which may be via a binding legal agreement in thename of the applicant such as a promissory note so long as said legal agreementis accompanied by a proof of funds in the name of a party to the agreement.Applicants and permittees shall not be required to show that the applicant orpermittee has access and control of over $400,000.00 in liquid assets except oninitial application pursuant to this Section 6.30.070, a change in location applicationpursuant to Section 6.30.130, or an ownership transfer application pursuant toSection 6.30.140;
6. For an applicant with two (2) or more employees, proof of a labor peace agreementbetween a bona fide labor organization and the applicant (the applicant shallprovide the City with a copy of the labor peace agreement that contains thesignatures of the union representative and the cannabis business). For applicantswith less than two (2) employees who have not yet entered into a labor peaceagreement, the applicant shall provide a notarized statement indicating that theapplicant will enter into and abide by the terms of a labor peace agreement withinthirty (30) days after employing two (2) employees;
7. A set of plans, including a site development plan, floor plan(s), building elevations(all four (4) sides), and a conceptual landscape plan with the percentage oflandscaping in the parking lot, setback areas, and tree size and species;
8. Colored interior and elevation renderings;
9. A completed background check application and receipt for each owner andmanager of the applicant pursuant to Section 6.30.210.L; and
10. The following application components: (a) Qualifications of the applicant's ownersand managers; (b) business and operations plan; (c) security plan; (d) safety plan;(e) neighborhood compatibility plan; (f) labor and employment plan; and (g)community benefits plan.
The City Manager shall, as a ministerial duty, reject any commercial cannabis businesspermit application that fails to meet the minimum requirements contained in thisSubsection C.
D. Within sixty (60) days of completing the application review under Subsection C above, theCity Manager shall, as a ministerial duty, review and score any complete applicationspursuant to the following objective review criteria according to the following quantitativeevaluation scale:
11 1. Qualifications of the applicant's owners and managers - 250 points The People of the City find that a proven track-record of cannabis retailer operations that successfully generate tax revenue carries out the purpose and intent of the Measure and are, therefore, critical for an applicant to demonstrate the qualifications of the applicant's owners and managers. Accordingly, 150 of the 250 points awardable under this Subsection 1 shall only be awarded, as a ministerial duty, if an owner or owners of the applicant with an aggregate ownership interest of forty (40) percent or more is currently at the time of application submission under this Section an owner or owners with an aggregate ownership interest of forty (40) percent or more of (or is an owner as a result of being the chief executive officer of a nonprofit entity of) a single licensed and lawfully operating commercial cannabis retailer operation (excluding any non-retailer microbusiness, cultivation, manufacturing, distribution, or other non-retailer commercial cannabis operation components) that has generated at least $3,500,000.00 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 from, tax filings to, or tax returns filed with a city, county, or state.
The remaining 100 of the 250 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 and manager qualifications detailing any special business or professional qualifications or licenses of the applicant's owner and manager that would add to the quality of services that the cannabis business would provide, including in areas related to cannabis, such as legal, finance, business ownership / administration, real estate development, scientific, or healthcare fields. b. Up to 50 points - Documentation that the applicant's owners and managers have experience operating cannabis retailers in any jurisdiction where cannabis retailers are permitted.
2.Plans, renderings, and overall location - 50 points
The 50 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 the City Zoning Code. Information on existing conditions shall include:
ii.
Exterior photographs showing all sides of any existing structure(s); Photographs of existing parking areas, landscaping, trash enclosure, and signage;
12 3.
iii. Information on existing use on the site, including the addresses,uses, and square footages. iv. Photographs of the existing site if the site is vacant; and v. Photographs of adjacent properties for context.
c. Up to 10 points - A floor plan showing information on the existing layoutand proposed layout of the building interior. d. Up to 10 points - Building elevations that provide information on existingconditions and proposed improvements. e. Up to 5 points - A conceptual landscape plan with the percentage oflandscaping in the parking lot, setback areas, and tree size and species. f. Up to 5 points - Colored interior renderings and exterior elevationrenderings (for both existing and/or proposed improvements).
Business and operations plan - 100 points
The 100 points awardable under this Subsection 3 shall be awarded, as a ministerial duty,pursuant to the following objective criteria:
a. Up to 10 points - A written description of the total square footage of thefacility with estimated square footage of proposed uses. b. Up to 10 points - A schedule for beginning operations, including a narrativeoutlining any proposed construction improvements and a timeline forcompletion. c. Up to 10 points - A budget for construction, operation, maintenance,compensation of employees, equipment costs, utility costs, and otheroperating costs. d. Up to 5 points - A description of the sources(s) of capital and use(s) ofcapital. e. Up to 10 points - Pro forma financial statements for at least three (3) yearsof operation. f. Up to 5 points - A description of the type of products to be sold and theestimated quantity and value of product(s) to be sold. g. Up to 5 points - A description of marketing procedures and tactics. h. Up to 10 points - A description of day-to-day operations that shouldacknowledge both state and local laws and should be consistent withindustry best practices. 13 4.
I. Up to 5 points - A description of hours of operation and openingprocedures. j. Up to 10 points - A description of cash handling procedures. k. Up to 10 points - A description of inventory control procedures to includeidentification of point-of-sale systems, and track and trace software.
1. Up to 10 points - A description of transportation, loading and unloading,distribution, or delivery procedures.
Security plan - 100 points
The 100 points awardabte under this Subsection 4 shall be awarded, as a ministerial duty,pursuant to the following objective criteria:
a. Up to 20 points - The security plan shall be prepared by a professionalsecurity consultant. b. Up to 10 points - A premises security diagram.
c. Up to 50 points - A description of access control, inventory control, cashhandling, and other security procedures and security equipmentdemonstrating compliance with the security requirements under thisChapter 6.30. d. Up to 10 points-A description of the intrusion alarm and monitoring systemincluding the name and contact information for the monitoring company. e. Up to 10 points - A description of the services of on-site security guards toinclude the (1) number of security guards; (2) the hours security guards willbe on-site; (3) locations where security will be positioned; and (4) securityguard responsibilities.
5. Safety plan - 1 00 points
The 100 points awardable under this Subsection 5 shall be awarded, as a ministerial duty,pursuant to the following objective criteria:
a. Up to 20 points - The security plan shall be prepared by a professional fireprevention 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 andother fire suppression equipment. c. Up to 50 points - A description of safety procedures, training for emergencysituations, and safety equipment demonstrating compliance with the safetyrequirements under this Chapter 6.30. 14 d. Up to 10 points - Identify all gases, pesticides, and chemicals to be usedand their storage locations. e. Up to 10 points - A description of the firm alarm and monitoring systemincluding the name and contact information for the monitoring company.
6. Neighborhood compatibility plan - 100 points
The 100 points awardable under this Subsection 6 shall be awarded, as a ministerial duty,pursuant to the following objective criteria:
a. Up to 40 points - A "Good Neighbor Policy" that (i) includes policies andmeasures in place to protect adjacent uses from any potential impacts(e.g., noise, light, odor, traffic, etc.) related to the proposed cannabisbusiness and (ii) describes how the cannabis business and its operatingcharacteristics will be proactively managed so the business is notdetrimental to the public health, safety, convenience, or welfare of personsresiding, working, visiting, or recreating in the surrounding area and will notresult in the creation of a nuisance. b. Up to 20 points - A description of odor mitigation practices to include: (i)identifying potential sources of odor; (ii) a description of odor controldevices and techniques employed to ensure that odors from cannabis arenot detectable beyond the permitted premises; and (iii) all proposed staffodor training and system maintenance. c. Up to 20 points - A description of a waste management plan that includeswaste disposal locations within the proposed premises and the applicant'ssecurity measures and methods of rendering waste unusable andunrecognizable. d. Up to 20 points - A description of efforts at sustainability / environmentalimpact mitigation.
7. Community benefits plan - 100 points
The People of the City find that monetary donations to local non-profit organizations,financial support of City sponsored activities or organizations, in kind donations to the Cityor other charitable organizations, and economic incentives to the City carry out thepurpose and intent of the Measure and are, therefore, critical for an applicant todemonstrate an effective community benefits plan. Accordingly, 50 of the 100 pointsawardable under this Subsection 7 shall only be awarded if the applicant pledges tovoluntarily provide a public benefit to a public use (or a combination thereof), which isdefined as a direct financial contribution equal to two percent (2%) of projected grossreceipts of the applicant to a public school located within the City, a public park locatedwithin the City, and/or a public or nonprofit community organization serving the City or itsresidents. Beyond the above, no further direct financial contributions shall be consideredas part of an applicant's community benefits plan.
The remaining 50 of the 100 points awardabte under this Subsection 7 shall be awarded,as a ministerial duty, pursuant to the following objective criteria:
15 a. Up to 25 points - A description of a social responsibility plan to includeidentification of a community liaison, plans to serve as a social equitybusiness incubator, plans to aide and participate in the work of local non-profits, community-based organizations, civic organizations, or socialservices organizations. b. Up to 25 points - A description of a plan to develop a public health outreachand educational program that outlines the risks of youth use of cannabisand that identifies resources available to youth related to drugs and drugaddiction.
8. Labor and employment plan - 200 points
The People of the City find that a proven track-record of cannabis retailer operations withhigh labor standards and commitment to labor peace carries out the purpose and intent ofthe Measure and are, therefore, critical for an applicant to demonstrate an effective laborand employment plan. Accordingly, 25 of the 200 points awardable under this Subsection8 shall only be awarded if the applicant provides documentation that an owner or ownersof the applicant with an aggregate ownership interest of fifty-one (51) percent or more arean owner or owners with an aggregate ownership interest of fifty-one (51) percent or moreprior to May 31, 2021 , of an existing licensed or permitted cannabis retailer, or an existinglicensed or permitted microbusiness with a retail sales component (and remains an owneror owners with an aggregate ownership interest of fifty-one (51) percent or more on thedate of the application submission under this Section) with a collective bargainingagreement with a labor organization that currently represents cannabis workers in theUnited States effective since at least May 31, 2021, inclusive of renewals (and remainingeffective, inclusive of renewals, on the date of the application submission under thisSection).
The remaining 175 of the 200 points awardable under this Subsection 8 shall be awarded,as a ministerial duty, pursuant to the following objective criteria:
a. Up to 20 points - An organizational chart of showing owners, managers,and employees. b. Up to 20 points - A description of the owner's and manager's roles in day-to-day operations and decisions. c. Up to 20 points - A description of the number of employees, title / position,and their respective responsibilities d. Up to 25 points - A description of compensation to employees,opportunities for continuing education, and employee training. e. Up to 25 points - A description of whether the cannabis business iscommitted to offering employees a living wage. f. Up to 25 points - A description of benefits provided to employees such ashealth care, vacation, and medical leave, to the degree they are offered aspart of employment. 16 g. Up to 20 points - A description of a plan to recruit employees from sociallyand economically disadvantaged backgrounds. h. Up to 20 points - A description of a plan to have at least 50% of employeepositions filled and hours worked by employees residing in the City.
E. Upon timely receipt of a commercial cannabis business permit application, the CityManager shall direct the Police Chief to conduct background checks in accordance withSection 6.30.210.L. Following review and scoring of complete applications completepursuant to objective review criteria under Subsection D, the City Manager shall, as aministerial duty, issue commercial cannabis business permits to applicants in order of theirrank under Subsection D up to the maximum number of commercial cannabis businesspermits authorized in Section 6.30.050. In the event of a tie in the order of ranking underSubsection D up to the maximum number of commercial cannabis business permitsauthorized in Section 6.30.050, the City Manager shall, as a ministerial duty, break the tieand issue commercial cannabis business permits to applicant with the highest scoringapplication component in the following order: (1) Qualifications of the applicant's ownersand managers; (2) labor and employment plan; (3) security plan; (4) safety plan; (5)community benefits plan; (6) neighborhood compatibility plan; (7) business and operationsplan; and (8) plans, renderings, and overall location. In the event of a tie on all applicationcomponents between one of more applicants up to the maximum number of commercialcannabis business permits authorized in Section 6.30.050, the City Manager shall not holda public lottery, but rather arrange for the tied applicants to provide public presentationsbefore the City Council, after which the City Council shall publicly rank the applicantspursuant to ranking sheets prepared by the City Manager that achieve a forced rankingbased on all of the objective review criteria and quantitative evaluation scale in SubsectionD, and the City Manager shall issue commercial cannabis business permits to applicantsin order of their rank up to the maximum number of commercial cannabis business permitsavailable following the City Manager's original ranking and issuance of commercialcannabis business permits and the limits contained in Section 6.30.050. However, theCity Manager shall not issue a commercial cannabis business permit to any applicant withan owner or manager that:
1. Provided false or misleading information on the applicant's commercial cannabisbusiness permit application;
2. Has been convicted of (or pled no contest to) "an offense that is substantiallyrelated to the qualifications, functions, or duties of the business or profession forwhich the application is made" as that term is defined in 26057(b)(4) of the StateBusiness & Professions Code; or
3. Has been sanctioned by a licensing authority or a city, county, or state forunauthorized commercial cannabis activities or has had a license suspended orrevoked under MAUCRSA in the three (3) years immediately preceding the datethe application was submitted.
F. Any decision of the City Manager or City Council under this Section 6.30.070 shall be afinal administrative decision not subject to administrative appeal under any provisions ofthis Chapter 6.30 or any provisions of the City Municipal Code but, rather, subject tojudicial review and remedies. 17 G. In the event that (1) the number of active, operating retailers and issued commercial cannabis business permits falls below the maximum number of commercial cannabis business permits for retailers authorized in Section 6.30.050 or (2) the City Council is ordered to increase the maximum number of commercial cannabis business permits issued for retailers by a court of competent jurisdiction as a judicial remedy (e.g., if a courtof competent jurisdiction orders the City Council to make commercial cannabis business permits available for retailers (including microbusinesses engaged in retail sales) based outside the City to engage in delivery within the City), the City Manager shall, as aministerial duty, within thirty (30) days reinstitute the application procedure under thisSection 6.30.070, subject to the maximum number of commercial cannabis business permits for retailers authorized and available (not allocated to an active, lawfully operatingretailer) for issuance. For the purpose of this Section, a retailer shall be consideredoperating if (1) upon initial issuance of commercial cannabis business permit (or approval of a change in location pursuant to Section 6.30.130), the retailer commences lawfuloperations within thirty-six (36) months or (2) following initial commencement of lawful operations, the retailer does not cease or abandon operations for one-hundred twenty(120) consecutive or cumulative days in any one(1)year period.
6.30.080 - Application Procedure for Commercial Cannabis Activity Other than Retailers.
In the event that the City Council, in the sole discretion of the City Council, should amend thisChapter 6.30 and Title 10 of the City Municipal Code to permit the issuance of commercialcannabis business permits for commercial cannabis activity other than retailers, the City Council, at the sole discretion of the City Council, shall by resolution make available the necessary forms, adopt any necessary application rules for the submission, intake, review, and approval of commercial cannabis business permit applications for commercial cannabis activity other than retailers up to the maximum number of commercial cannabis business permits authorized pursuant to Section 6.30.050.
6.30.090 - Limitations on the City's Liability.
To the fullest extent permitted by law, the City shall not assume any liability whatsoever withrespect to having issued a commercial cannabis business permit pursuant to this Chapter 6.30 or otherwise approving the operation of any cannabis business. As a condition to the approval of any commercial cannabis business permit, the applicant shall be required to meet all of thefollowing conditions before they can receive a commercial cannabis business permit:
A. Execution of an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at applicant's sole cost and expense), and hold the City, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of, or which are in any way related to, the City's issuance of the commercial cannabis business permit, the City's decision to approve the operation of the cannabis business or activity, the process used by the Cityin making its decision, or the alleged violation of any federal, State, or local laws by the cannabis business or any of its officers, employees, or agents.
B. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Attorney. 18 C. Defend and indemnify the City for all costs and expenses, including but not limited toattorneys' fees and court costs, that the City may be required to pay as a result of anylegal challenge related to the City's approval of the applicant's commercial cannabisbusiness permit or related to the City's approval of a commercial cannabis activity. TheCity, at its sole discretion, may participate at its own expense in the defense of any suchaction, but such participation shall neither relieve nor increase any of the obligationsimposed on the applicant hereunder.
6.30.100 - Commercial Cannabis Business Permit Term.
A. Subject to this Section 6.30.100 and Section 6.30.110, the term of each commercialcannabis business permit shall be indefinite.
B. Upon the one (1) year anniversary of the date of issuance for each commercial cannabisbusiness permits and each year thereafter, the City Manager shall conduct a performancereview of the permittee to assess compliance with the requirements of this Chapter 6.30.Within thirty (30) days of the conclusion of the annual performance review of the permittee,the City Manager or designee(s) shall issue a letter of compliance or noncomplianceoutlining all items to be corrected to ensure full compliance. In the event of anynoncompliance, 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 failure to remedy shall constitute a material violation of any law and/or any rule,regulation, and/or standard adopted pursuant to this Chapter 6.30 subject to suspensionor revocation under Section 6.30.110.
C. The permittee shall pay a fee in an amount to be set by the City Council via resolution tocover the costs of conducting the performance review, together with any costs incurred bythe City to administer the program created under this Chapter 6.30.
6.30.110 - Suspension and Revocation of Commercial Cannabis Business Permits.
A. The City Manager may suspend or revoke a commercial cannabis business permit for anymaterial violation of any taw and/or any rule, regulation, and/or standard adopted pursuantto this Chapter 6.30.
B. Suspension or revocation of a State license issued by the State or by any of itsdepartments or divisions, corresponding to the commercial cannabis business permit shallimmediately result in the suspension of the associated commercial cannabis businesspermit until the State, or its applicable department or division, reinstates the State licenseor 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 commercial cannabis business permitwithin two (2) business days of the suspension, revocation, or termination of the Statelicense.
6.30.120 -Appeals Regarding Commercial Cannabis Business Permits.
A. Within ten (10) calendar days after the date of a decision of the City Manager to revoke,suspend, or deny the renewal of an issued commercial cannabis business permit, anaggrieved party may appeal such action by filing a written appeal with the City Clerk setting 19 forth the reasons why the decision was not proper. An appeal shall stay all proceedingsin furtherance of the appealed action.
B. At the time of filing, the appellant shall pay the designated appeal fee established byresolution of the City Council.
C. Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing beforethe City Council. The City Council shall hear the matter de novo, and shall conduct thehearing pursuant to the procedures set forth by the City.
D. The appeal shall be held within a reasonable time after the filing the appeal, but in noevent later than ninety (90) days from the date of such filing. The City shall notify theappellant 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 thedecision appealed. The formal rules of evidence and procedure applicable in a court oflaw shall not apply to the hearing.
F. At the conclusion of the hearing the City Council may affirm, reverse, or modify thedecision appealed. The decision of the City Council shall be a final administrativedecision, subject to judicial review and remedies.
6.30.130 - Change in Location; Updated Application Information.
A. A permittee may change the business location specified in a commercial cannabisbusiness permit upon submission and approval of a change in location applicationpromulgated, as a ministerial duty, by the City Manager pursuant to regulations adoptedunder Section 6.30.290 within one-hundred eighty (180) days following the effective dateof this Chapter 6.30. The permittee shall pay an application fee established by resolutionof the City Council to cover all costs incurred by the City in the review and processing ofchange in location applications. The City Manager shall process such change in locationapplications as a ministerial duty within sixty (60) days of receipt.
B. 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 orpermittee's commercial cannabis business permit application or any change in status ofcompliance with the provisions of this Chapter 6.30, including any change in the cannabisbusiness ownership or management.
6.30.140 -Transfer of a Commercial Cannabis Business Permit.
A. An owner of a commercial cannabis business permit shall not transfer ownership or controlof such permit to another person unless and until the permittee and transferee obtain anamendment to the permit from the City Manager stating that the transferee is now anowner of the permittee. A permittee may change the ownership specified in a commercialcannabis business permit upon submission and approval of a change in ownershipapplication promulgated, as a ministerial duty, by the City Manager pursuant to regulationsadopted under Section 6.30.290 within one-hundred eighty (180) days following theeffective date of this Chapter 6.30. The permittee shall pay an application fee establishedby resolution of the City Council to cover all costs incurred by the City in the review andprocessing of change in ownership applications. The City Manager shall process such 20 change in ownership applications as a ministerial duty once the City Manager reasonablydetermines that the transferee passed the background check required for owners andmeets all other requirements of this Chapter6.SO.
B. Notwithstanding Subsection A, during the first three years following the issuance of acommercial cannabis business permit, the City Manager shall not process any applicationto change the ownership or control of a commercial cannabis business permit that resultsin the permittee altering its ownership composition in a manner that would result in thepermittee not being entitled to points it was awarded when the permittee was an applicantpursuant to Section 6.30.070. For example, if a permittee received 25 points when it wasan applicant for providing documentation that an owner or owners of the applicant with anaggregate ownership interest of fifty-one (51) percent or more are an owner or ownerswith an aggregate ownership interest offifty-one (51) percent or more prior to May 31,2021, of an existing licensed or permitted cannabis retailer, or an existing licensed orpermitted microbusiness with a retail sales component (and remains an owner or ownerswith an aggregate ownership interest of fifty-one (51) percent or more on the date of theapplication submission under this Section 6.30.070) with a collective bargainingagreement with a labor organization that currently represents cannabis workers in theUnited States effective since at least May 31, 2021, inclusive of renewals (and remainingeffective, inclusive of renewals, on the date of the application submission), the CityManager shall not process or authorize any change in ownership or control of thepermittee if the change would result in the permittee being unable to continue to satisfythe aforementioned criteria subsequent to its approval.
C. Notwithstanding Subsection A, no commercial cannabis business permit may betransferred when the City Manager has notified the permittee that its commercial cannabisbusiness permit has been or may be suspended or revoked.
D. Any attempt to transfer a commercial cannabis business permit either directly or indirectlyin violation of this Section 6.30.140 is hereby declared void, and such an unpermittedtransfer shall be deemed a ground for revocation of the permit.
6.30.170 - Records and Recordkeeping.
A. Each cannabis business shall maintain accurate books and records in an electronicformat, which detail all revenues and expenses of the business, including, but not limitedto, all of its assets and liabilities. On no less than an annual basis (at or before the timeof the renewal of a commercial cannabis business permit issued pursuant to this Chapter6.30), or at any time upon reasonable request of the City, each cannabis business shallfile a sworn statement detailing the number of sales by the cannabis business during theprevious 12-month period (or short:er period based upon the timing of the request) detailingsales for each month within such period in question. The statement shall also includegross sales for each month and all applicable taxes paid or due to be paid. On an annualbasis, each cannabis business shall submit to the City a financial audit of the business'soperations conducted by an independent certified public accountant. Each permittee shallbe subject to a regulatory compliance review and financial audit as determined by the CityManager.
B. Each cannabis business shall maintain a current register of the names and the contactinformation (including the name, address, and telephone number) of anyone owning orholding an interest in the cannabis business and, separately, the same contact information 21 of all officers, managers, employees, agents, and volunteers currently employed orotherwise engaged by the cannabis business. The register required by this paragraphshall be provided to the City Manager upon a reasonable request.
C. Each cannabis business shall maintain a record of all distributions of cannabis andcannabis products to other cannabis businesses authorized by State law for a period ofno less than seven (7) years.
D. All cannabis businesses shall maintain an inventory control and reporting system thataccurately documents the present location, amounts, and descriptions of all cannabis andcannabis products for all stages of the growing, production, manufacturing, laboratorytesting, distribution, sale, delivery, or other commercial cannabis activity processes untilpurchase or distribution.
E. Subject to any applicable restrictions under the Health Insurance Portability &Accountability Act ("HIPAA") regulations, each cannabis business shall grant the CityManager access to the business's books, records, accounts, together with any other dataor documents relevant to its permitted commercial cannabis activities, for the purpose ofconducting an audit or examination. Books, records, accounts, and any and all relevantdata or documents shall be produced no later than five (5) business days after receipt ofthe 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 thatis compatible with the City's software and hardware.
6.30.180 - Security Measures.
A. A cannabis business shall implement sufficient security measures to deter and preventthe unauthorized entrance into areas containing cannabis or cannabis products and todeter and prevent the theft of cannabis or cannabis products at the cannabis business.Except as may otherwise be determined by the Chief of Police, these security measuresshall include, but are not limited to, all of the following:
1. Preventing individuals from remaining on the premises of the cannabis business ifthey are not engaging in an activity directly related to the permitted operations ofthe cannabis business.
2. Establishing limited access areas accessible only to authorized cannabis businesspersonnel.
3. Except for live plants, which are being cultivated at a cultivation facility, all cannabisand cannabis products shall be stored in a secured and locked room, safe, or vault.All cannabis and cannabis products, including live plants which are beingcultivated, 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 tomonitor all entrances and exits to and from the premises, all interior spaces withinthe cannabis business, which are open and accessible to the public, all interiorspaces where cannabis, cash or currency, is being stored for any period of timeon a regular basis, and all interior spaces where diversion of cannabis couldreasonably occur. The cannabis business shall be responsible for ensuring thatthe security surveillance camera's footage is remotely accessible by the Chief of 22 Police, and that it is compatible with the city's software and hardware. In addition,remote and real-time, live access to the video footage from the cameras shall beprovided to the Chief of Police. Video recordings shall be maintained for aminimum of ninety (90) days and shall be made available to the Chief of Policeupon request. Video shall be of sufficient quality for effective prosecution of anycrime found to have occurred on the site of the cannabis business.
5. Sensors shall be installed to detect entry and exit from all secure areas.
6. Panic buttons shall be installed in all cannabis businesses.
7. Having a professionally installed, maintained, and monitored alarm system.
8. Any bars installed on the windows or the doors of the cannabis business shall beinstalled only on the interior of the building.
9. Security personnel shall be on-site twenty-four (24) hours a day unless thecannabis business has an alternative security program authorized by the PoliceChief or designee(s). Security personnel must be licensed by the State Bureau ofSecurity & Investigative Services personnel and shall be subject to the prior reviewand approval of the Chief of Police, which shall not be unreasonably withheld.
10. Each cannabis business shall install standby generators and have the capabilityto remain secure during a power outage and shall ensure that all access doors arenot solely controlled by an electronic access panel to ensure that locks are notreleased during a power outage.
11. Additional security measures may be added through the review of a commercialcannabis business permit application.
B. Each cannabis business shall identify a designated security representative/liaison to theCity, who shall be reasonably available to meet with the Chief of Police regarding anysecurity related measures or and operational issues.
C. Each cannabis business (including as part of the commercial cannabis business permitapplication process) shall have a storage and transportation plan and currencymanagement plan, which describes in detail the procedures for safely and securelystoring, disposing and transporting all cannabis, cannabis products, and any currency.
D. The cannabis business shall cooperate with the City whenever the Chief of Police makesa request, upon reasonable notice to the cannabis business, to inspect or audit theeffectiveness of any security plan or of any other requirement of this Chapter 6.30.
E. A cannabis business shall notify the Chief of Police within twenty-four (24) hours afterdiscovering any of the following:
1. Significant discrepancies identified during inventory. The level of significance shallbe determined by the regulations promulgated by the City Manager.
2. Diversion, theft, loss, or any criminal activity involving the cannabis business orany agent or employee of the cannabis business. 23 3. The loss or unauthorized alteration of records related to cannabis and cannabisproducts or registering customers or employees and/or agents of the cannabisbusiness.
4. Any other breach of security.
6.30.190 - Restriction on Alcohol and Tobacco Sales.
No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages ortobacco on or about the premises of the cannabis business.
6.30.200 - Fees and Charges.
A. No person may commence or continue any commercial cannabis activity in the Citywithout timely paying in full all fees and charges required for the operation of a commercialcannabis activity. Fees and charges associated with the operation of such activity shallbe established by resolution of the City Council which may be amended from time to time.
B. All cannabis businesses authorized to operate under this Chapter 6.30 shall pay all sales,use, business and other applicable taxes, and all license, registration, and other feesrequired under federal, State, and local law. Each cannabis business shall cooperate withCity with respect to any reasonable request to audit the cannabis business' books andrecords for the purpose of verifying compliance with this Section 6.30.200, including, butnot limited to, a verification of the amount of taxes required to be paid during any period.
6.30.210 - Generally Applicable Operating Requirements.
A. Cannabis businesses may operate only during the hours specified in the commercialcannabis business permit issued by the City and must comply with State law at all times.
B. Cannabis shall not be consumed on the premises of any cannabis businesses.
C. No cannabis or cannabis products or graphics depicting cannabis or cannabis productsshall be visible from the exterior of any property issued a commercial cannabis businesspermit or on any of the vehicles owned or used as part of the cannabis business. Nooutdoor storage of cannabis or cannabis products is permitted at any time.
D. Each cannabis business shall have in place a point-of-sale or management inventorytracking system to track and report on all aspects of the cannabis business including, butnot limited to, such matters as cannabis tracking, inventory data, gross sales (by weightand by sale), and other information which may be deemed necessary by the City. Thecannabis business shall ensure that such information is compatible with the City's record-keeping systems. In addition, the system must have the capability to produce historicaltransactional data for review. Furthermore, any system selected must be approved andauthorized by the City Manager prior to being used by a permittee.
E. All cannabis and cannabis products sold, distributed, and/or manufactured shall becultivated, manufactured, and distributed by licensed facilities that maintain operations infull conformance with the State and local regulations. The packaging and labeling ofcannabis and cannabis products shall comply at ati times with State law. 24 F. There shall not be a physician located in any cannabis business at any time for thepurpose of evaluating patients for the issuance of a medicinal cannabis recommendations.
G. Each cannabis business shall provide the City Manager with the name, telephone number(both land line and mobile, if available) of an on-site employee or owner to whomemergency notice can be provided at any hour of the day.
H. Signage and Notices.
1. In addition to the requirements otherwise set forth in this Section 6.30.210,business identification signage for a cannabis business shall conform to therequirements of the City Municipal Code, including, but not limited to, seeking theissuance of a City sign permit.
2. No signs placed on the premises of a cannabis business shall obstruct anyentrance or exit to the building or any window.
3. Each entrance to a cannabis business shall be visibly posted with a clear andlegible notice indicating that smoking, ingesting, or otherwise consuming cannabison the premises, or in the areas adjacent to the premises, is prohibited.
4. The entrance to the cannabis business shall be clearly and legibly posted with anotice that no person under the age of twenty-one (21) years of age is permittedto enter upon the premises of the cannabis business, other than as lawfulcustomers permitted under State law in the case of retailers.
5. No cannabis business shall advertise by having a person holding a sign andadvertising the business to passersby, whether such person is on the premises ofthe cannabis business or elsewhere including, but not limited to, the public right-of-way.
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 premisesof a cannabis business and shall not be allowed to serve as a driver for a cannabisbusiness. It shall be unlawful and a violation of this Chapter 6.30 for any person to employany person at a cannabis business who is not at least twenty-one (21) years of age.
J. Odor control devices and techniques shall be incorporated in all cannabis businesses toensure that odors from cannabis are not detectable off-site. Cannabis businesses shallprovide a sufficient odor absorbing ventilation and exhaust system so that odor generatedinside the cannabis business that is distinctive to its operation is not detected outside ofthe facility, anywhere on adjacent property or public rights-of-way, on or about the exterioror interior common area walkways, hallways, breezeways, foyers, lobby areas, or anyother areas available for use by common tenants or the visiting public, or within any otherunit located inside the same building as the cannabis business. As such, cannabisbusinesses must install and maintain the following equipment, or any other equipmentwhich the City Manager determines is a more effective odor control method or technology:
1. An exhaust air filtration system with odor control that prevents internal odors frombeing emitted externally; and 25 2. An air system that creates negative air pressure between the cannabis business'sinterior and exterior, so that the odors generated inside the cannabis business arenot detectable on the outside of the commercial cannabis business.
K. The original copy of the commercial cannabis business permit issued by the City pursuantto this Chapter 6.30 and the City issued business license shall be posted inside thecannabis business in a location readily visible to the public.
L. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, whichauthorizes City authorities to access State and local summary criminal history informationfor employment, licensing, or certification purposes; and authorizes access to federal levelcriminal history information by transmitting fingerprint images and related information tothe Department of Justice to be transmitted to the Federal Bureau of Investigation, everyperson listed as an owner, manager, supervisor, employee, or volunteer of the cannabisbusiness must submit fingerprints and other information deemed necessary by the Chiefof Police for a background check by the City Police Department. Pursuant to Sections11105(b)(11) and 13300(b)(11) of the State Penal Code, which requires that there be arequirement or exclusion from employment, licensing, or certification based on specificcriminal conduct on the part of the subject of the record, no person shall be issued acommercial cannabis business permit unless they have first cleared the backgroundcheck, as determined by the Chief of Police, as required by this Chapter 6.30. A fee forthe cost of the background investigation, which shall be the actual cost to the City toconduct the background investigation as it deems necessary and appropriate, shall bepaid at the time the application for a commercial cannabis business permit is submitted.
M. The cannabis business shall prohibit loitering by persons outside the facility both on thepremises and within fifty (50) feet of the premises.
N. Within sixty (60) days of licensure, for a permittee with two (2) or more employees, thepermittee shall attest to the City that the permittee has entered into a labor peaceagreement and will abide by the terms of the agreement. The permittee shall submit acopy of the page of the labor peace agreement that contains the signatures of the laborrepresentative and the applicant. For permittees with less than two (2) employees whohave not yet entered into a labor peace agreement, the permittee shall provide a notarizedstatement indicating that the applicant will enter into and abide by the terms of a laborpeace agreement within thirty (30) days after employing two (2) employees. If anattestation that the permittee is party to a labor peace agreement, and a copy of the pageof the labor peace agreement that contains the signatures of the labor representative wassubmitted to the City by the permittee as part of the application process, that will meet thisobligation.
0. Cannabis businesses shall implement a workforce plan that includes at least the followingprovisions:
1. Commitment for thirty percent (30%) of employees to be local hires; this local hiringrequirement is satisfied when a cannabis business shows that it has either hiredor made a good faith effort to hire bona fide residents of the City or persons thatmay establish residency after initial employment with the permittee; 26 2. Commitment to offer apprenticeships and/or compensation for continuingeducation in the field of commercial cannabis activity; and
3. Entering into a collective bargaining agreement and/or paying a living wage toemployees. "Living wage" means fifty percent (50%) more than the applicableamount of the hourly minimum wage mandated by State law (convertible to anannual salary by multiplying that hourly minimum wage by 2,080, as applicable),whichever is greater.
P. It shall be unlawful for a cannabis business to discriminate in any manner or take adverseaction against any employee in retaliation for exercising rights protected under thisChapter 6.30 or City or State law. These rights include, but are not limited to (1) the rightto file a complaint or inform any person about any party's alleged noncompliance with thisChapter 6.30 or City or State law and (2) the right to inform any person of his or herpotential rights under this this Chapter 6.30 or City or State law and to assist him or her inasserting such rights. Protections under this this Chapter 6.30 or City or State law shallapply to any employee who mistakenly, but in good faith, alleges noncompliance with thisthis Chapter 6.30 or City or State law. Taking adverse action against an employee withinninety (90) days of the employee's exercise of rights protected under this this Chapter6.30 or City or State law shall raise a rebuttable presumption of having done so inretaliation for the exercise of such rights.
6.30.220 - Additional Operational Requirements in General.
The City Manager may, pursuant to Section 6.30.290, develop additional cannabis businessoperational requirements or regulations for all authorized commercial cannabis activities as aredetermined to be necessary to protect the public health, safety, and welfare.
6.30.230 - Additional Operating Requirements for Cultivation Sites.
If the City Council should amend this Chapter 6.30 and Title 10 of the City Municipal Code topermit the issuance of commercial cannabis business permits for the commercial cannabis activityof cultivation within the City, the City Council shall amend this Section to adopt operatingrequirements for cultivation within the City.
6.30.240 - Additional Operating Requirements for Manufacturing Sites.
If the City Council should amend this Chapter 6.30 and Title 10 of the City Municipal Code topermit the issuance of commercial cannabis business permits for the commercial cannabis activityof manufacturing within the City, the City Council shall amend this Section to adopt operatingrequirements for manufacturing within the City.
6.30.250 - Additional Operating Requirements for Testing Laboratories.
If the City Council should amend this Chapter 6.30 and Title 10 of the City Municipal Code topermit the issuance of commercial cannabis business permits for the commercial cannabis activityof testing laboratories within the City, the City Council shall amend this Section to adopt operatingrequirements for testing laboratories within the City.
6.30.260 - Additional Operating Requirements for Distributors. 27 If the City Council should amend this Chapter 6.30 and Title 10 of the City Municipal Code topermit the issuance of commercial cannabis business permits for distributors based within theCity, the City Council shall amend this Section to adopt operating requirements for distributorsbased within the City.
6.30.270 - Additional Operating Requirements for Retailers.
A. Retailers and the operation thereof shall comply with State law at all times.
B. Prior to dispensing medicinal cannabis or medicinal cannabis products to a qualifiedpatient, a retailer shall verify the age and all necessary documentation of each customerto ensure the customer is not under the age of eighteen (18) years and obtain verificationfrom the recommending physician that the person requesting medicinal cannabis ormedicinal cannabis products is a qualified patient, and shall maintain a copy of thephysician recommendation or identification card as described in Sections 11362.71through 11362.77 of State hlealth & Safety Code, as may be amended from time to time,on site for period of not less than seven (7) years.
C. Prior to dispensing cannabis or cannabis products to an adult-use customer, a retailershall verify the age and all necessary documentation of each customer to ensure thecustomer is not under the age of twenty-one (21) years.
D. All restroom facilities shall remain locked and under the control of managers onsite.
E. A retailer shall notify customers (verbally or by written agreement) and by posting of anotice or notices conspicuously in at least 15-point type within the permitted premises thatstate as follows:
1. "The sale or diversion ofcannabis or cannabis products without a license issuedby the City of Manhattan Beach is a violation of State law and the Manhattan BeachMunicipal Code."
2. "Secondary sale, barter, or distribution of cannabis or cannabis productspurchased from a permittee is a crime and can lead to arrest."
3. "Customers must not loiter in or near these premises and may not consumecannabis or cannabis products in the vicinity of this business or in any place notlawfully permitted. These premises and vicinity are monitored to ensurecompliance."
4. "WARNING: The use of cannabis or cannabis products may impair a person'sability to drive a motor vehicle or operate heavy machinery."
5. "CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis-derivedproducts will expose you and those in your immediate vicinity to cannabissmoke. Cannabis smoke is known by the State of California to cause cancer andreproductive harm."
6.30.280 - Additional Operating Requirements for Delivery.
A. Delivery shall comply with State law at all times.
28 B. Security plans developed pursuant to this Chapter 6.30 shall include provisions relating tovehicle 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 technologyplatform owned by or licensed to the delivery-only retailer that uses point-of-saletechnology to track and database technology to record and store the following informationfor each transaction involving the exchange of cannabis or cannabis products betweenthe retailer and customer:
1. The identity of the individual dispensing cannabis or cannabis products on behalfof the permittee;
2. The identity of the customer receiving cannabis or cannabis products from thepermittee;
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 individualdispensing cannabis or cannabis products on behalf of the permittee for thecannabis or cannabis products dispensed and received; and
5. The location or address where the sale or retail sale took place or closed.
D. A permittee shall maintain a database and provide a list of the individuals and vehiclesauthorized to conduct delivery, and a copy of the valid State driver's license issued to thedriver of any such vehicle on behalf of the retailer to the Chief of Police.
E. Individuals making deliveries of cannabis or cannabis products on behalf of the retailershall maintain a physical copy of the delivery request (and invoice) and shall make itavailable upon the request of agents or employees of the City requesting documentation.
F. During delivery, a copy of the permittee's commercial cannabis business permit and Statelicense shall be in the vehicle at all times, and the driver shall make it available upon therequest of agents or employees of the City requesting documentation.
G. A retailer shall only permit or allow delivery of cannabis or cannabis products in a vehiclethat 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 beingtemperature controlled if perishable cannabis or cannabis products is being transported;and (4) does not display advertising or symbols visible from the exterior of the vehicle thatsuggest the vehicle is used for cannabis delivery or affiliated with a retailer. hi. A retailer shall facilitate deliveries with a technology platform owned by or licensed to theretailer that uses global positioning system technology to track, and database technologyto record and store the following information:
1. The time that the individual conducting delivery on behalf of the retailer departedthe licensed premises. 29 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 traveledbetween 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 retailerand received by the individual conducting deliveries on behalf of the retailer forthe cannabis or cannabis products dispensed and received.
I. The individual making deliveries on behalf of the retailer shall personally verify for eachindividual delivery transaction the identity of the customer receiving cannabis or cannabisproducts from the retailer and (1) for medicinal cannabis or medicinal cannabis productsto a qualified patient, the age and all necessary documentation of each customer to ensurethe customer is not under the age of eighteen (18) years and obtain verification from therecommending physician that the person requesting medicinal cannabis or medicinalcannabis products is a qualified patient, and shall maintain a copy of the physicianrecommendation or identification card as described in Sections 11362.71 through11362.77 of State Health & Safety Code, as may be amended from time to time, on sitefor period of not less than seven (7) years or (2) for cannabis or cannabis products to anadult-use customer, age and all necessary documentation of each customer to ensure thecustomer is not under the age oftwenty-one (21) years.
6.30.290 - Promulgation of Regulations, Standards, and Other Legal Duties.
A. Consistently with stated requirements of this Chapter 6.30 (and in particular not to repealor constructively repeal this Chapter 6.30), in addition to any regulations adopted underState law, the City Manager is authorized to establish any additional rules, regulations,and standards governing the issuance, denial or renewal of commercial cannabisbusiness permits, the ongoing operation ofcannabis businesses, and the City's oversight,or concerning any other subject determined to be necessary to carry out the purposes ofthis Chapter 6.30.
B. Such regulations shall be published on the City's website. 30 C. Regulations promulgated by the City Manager shall become effective upon date ofpublication. Cannabis businesses shall be required to comply with all State and local lawsand regulations, including but not limited to any rules, regulations or standards adoptedby the City Manager.
6.30.300 - Community Relations.
A. Each cannabis business shall provide the name, telephone number, and email address ofa community relations contact to whom notice of problems associated with the cannabisbusiness can be provided. Each cannabis business shall also provide the aboveinformation to all businesses and residences, in the City, located within one hundred andfifty (150) feet of the cannabis business. Such community relations contact shall respondto any complaints within forty-eight (48) hours of receipt of such complaints.
B. During the first year of operation pursuant to this Chapter 6.30, the owner(s), manager(s),and community relations representative from each cannabis business holding acommercial cannabis business permit issued pursuant to this Chapter 6.30 shall attend aquarterly meeting with the City Manager and other interested parties as deemedappropriate by the City Manager, to discuss costs, benefits, and other community issuesarising as a result of implementation of this Chapter 6.30. After the first year of operation,the owner(s), manager(s), and community relations representative from each suchcannabis business shall meet with the City Manager when and as requested by the CityManager.
C. Cannabis businesses to which a commercial cannabis business permit is issued pursuantto this Chapter 6.30 shall develop and make available to youth organizations andeducational institutions a public education plan that outlines the risks of youth addiction tocannabis, and that identifies resources available to youth related to drugs and drugaddiction.
6.30.310 - Fees Deemed Debt to City.
The amount of any fee, cost, or charge imposed pursuant to this Chapter 6.30 shall be deemeda debt to the City that is recoverable via authorized processes as set forth in the City MunicipalCode or available through any court of competent jurisdiction.
6.30.320 - Permittee, Owner, and Property Owner Responsible for Violations.
A. Each permittee and each owner and each manager of the permittee (and each individualowner and each individual manager of an owner or manager of the permittee) shall beresponsible for all violations of the laws of the State or of the regulations and/or theordinances of the City occurring within the City or in or about the premises of the cannabisbusiness, if committed by the permittee or any employee or agent of the permittee andwhether or not said violations occur within the permittee, owner, or manager's presence.
B. No person may engage in any commercial cannabis activity within the City unless theperson is in compliance with the requirements of this Chapter 6.30.
C. It shall be unlawful to rent, lease, or otherwise permit any commercial cannabis activity atany location, structure, or vehicle in the City by a person (1) that does not have a validcommercial cannabis business permit issued by the City; (2) that does not have a valid 31 State license; (3) that does not have any other applicable approvals, including, but notlimited to, a building permit and City business license; or (4) that is not currently incompliance with all applicable State and local laws and regulations pertaining to thecommercial cannabis activity. Property owners shall have strict liability for any commercialcannabis activity at any location, structure, or vehicle in the City by a person (1) that doesnot have a valid commercial cannabis business permit issued by the City or (2) that doesnot have a valid State license.
6.30.330 - Inspection and Enforcement.
A. The City Manager, Chief of Police, or designee(s) charged with enforcing the provisionsof the City Municipal Code, or any provision thereof, may enter the location of a cannabisbusiness at any time, without notice, and inspect the location of any cannabis business aswell as any recordings and records required to be maintained pursuant to this Chapter6.30 or under applicable provisions of State law.
B. It is unlawful for any person having responsibility over the operation of a cannabisbusiness, to impede, obstruct, interfere with, or otherwise not to allow, the City to conductan inspection, review or copy records, recordings, or other documents required to bemaintained by a cannabis business under this Chapter 6.30 or under State or local law. Itis 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 business underthis Chapter 6.30 or under State or local taw.
C. The City Manager, Chief of Police, or designee(s) charged with enforcing the provisionsof this Chapter 6.30 may enter the location of a cannabis business at any time during thehours of operation and without notice to obtain samples of the cannabis to test for publicsafety purposes. Any samples obtained by the City shall be logged, recorded, andmaintained in accordance with the City Police Department standards for evidence.
6.30.340 - Concurrent Regulation with the State.
It is the stated intent of this Chapter 6.30 to regulate commercial cannabis activity in the Cityconcurrently with the State.
6.30.350 - Violations Declared a Public Nuisance.
Each and every material violation of the provisions of this Chapter 6.30 is hereby deemed unlawfuland a public nuisance.
6.30.360 - Each Violation a Separate Offense.
Each and every violation of this Chapter 6.30 shall constitute a separate violation and shall besubject to alt remedies and enforcement measures authorized by the City Municipal Code.Additionally, as a nuisance per se, any material violation of this Chapter 6.30 shall be subject toinjunctive relief, any commercial cannabis business permit issued pursuant to this Chapter 6.30being deemed null and void, disgorgement, and payment to the City of any monies unlawfullyobtained, costs of abatement, costs of investigation, attorney's fees, and any other relief orremedy available at law or in equity. The City may also pursue any and ati remedies and actionsavailable and applicable under State and local laws for any violations committed by the cannabisbusiness or persons related to, or associated with, the commercial cannabis activity. Additionally, 32 when there is determined to be an imminent threat to public health, safety or welfare, the CityManager, Chief of Police, or designee(s), may take immediate action to temporarily suspend acommercial cannabis business permit issued by the City, pending a public hearing before the CityCouncil.
6.30.370 - Criminal Penalties.
Each and every material violation of the provisions of this Chapter 6.30 may be prosecuted as amisdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars($1,000.00) or imprisonment in the County jail for a period of not more than six (6) months, or byboth such fine and imprisonment. Each day a material violation is committed or permitted tocontinue shall constitute a separate offense.
6.30.380 - Remedies Cumulative and Not Exclusive.
The remedies provided herein are not to be construed as exclusive remedies.authorized to pursue any proceedings or remedies provided by law.The City is SECTION 5. Chapter 4.136 (Cannabis Activities) of Title 4 (Public Welfare, Morals andConduct) of the City Municipal Code is hereby repealed in its entirety.
SECTION 6. Chapter 10.82 (Cannabis) of Part V (Administrative Regulations) of Title 10(Planning and Zoning) of the City Municipal Code is hereby repealed in its entirety.
SECTION 7. Section 10.16.020 (CL, CC, CG, CD, CNE districts: land use regulations.)of Chapter 10.16 (C Commercial Districts) of Part II (Base District Regulations) of the CityMunicipal Code is hereby amended by the addition of the following land use and note regardingto additional regulations to the table within such Section 10.16.020:
CLecCGCDCNEAdditional Regulations: Commercial Uses(B)(K)(L) Cannabis retailerpp_[OL (0) See Chapter 6.30, Commercial Cannabis Activity.
SECTION 8. Sensitive Uses. The People of the City find that the definitions of thesensitive uses (day care centers, schools, and youth centers) under the amendment to Section6.30.030 of the City Municipal Code in this Measure are subject to some degree of interpretation.However, the People of the City also find that certainty regarding the identification of sensitiveuses (day care centers, schools, and youth centers) under the amendments to Sections 6.30.030and 6.30.060 of the City Municipal Code in this Measure is required to carry out the purpose andintent of the Measure so the that People, the City, and prospective applicants can clearly identifywhere and where not lawful cannabis businesses under this Measure may be located.Accordingly and pursuant to the authority delegated by the State to the People of the City underSection 26054(b) of the State Business & Professions Code and overriding the location anddesign requirements contained in Section 26054(b) of the State Business & Professions Code,the following sensitive uses (day care centers, schools, and youth centers) and only the followingsensitive uses (day care centers, schools, and youth centers) located on the following CountyAssessor's Identification Numbers and only the following County Assessor's IdentificationNumbers shall be considered under the amendment to Section 6.30.060.A of the City MunicipalCode in this Measure for the purpose of the initial establishment of cannabis retailers pursuant to 33 the initial iteration of the cannabis retailer application procedure under the amendment to Section6.30.070 of the City Municipal Code in this Measure (to include any review and scoring of anyapplications pursuant to the objective review criteria and quantitative evaluation scale under theamendment to Section 6.30.070.D of the City Municipal Code in this Measure). Only followingthe initial iteration of the cannabis retailer application procedure and the initial issuance ofcommercial cannabis business permits under the amendment to Section 6.30.070 of the CityMunicipal Code in this Measure, may the City Manager (his or her designee(s)) reinterpret thefollowing list of sensitive uses (day care centers, schools, and youth centers) and CountyAssessor's Identification Numbers for the purpose of subsequent iterations of the cannabis retailerapplication procedure under the amendment to Section 6.30.070 of the City Municipal Code inthis Measure, change in location applications under the amendment to Section 6.30.130 of theCity Municipal Code in this Measure, and any iterations of the application procedure forcommercial cannabis activity other than retailers under the amendment to Section 6.30.080 of theCity Municipal Code in this Measure.
NameSensitive Use
Type
County Assessor's
Identification Number(s) 8th Street ParkYouth Center4164-012-900 AdventurePlexYouth Center4138-027-902
American Martyrs PreschoolDay Care Center4171-029-022,4171-030-001, 4171-030-015
American Martyrs SchoolSchool4171-029-022,4171-030-001, 4171-030-015
Andrews ParkYouth Center4162-001-910
Aviation Park / Aviation GymnasiumYouth Center | 4149-008-902, 4149-008-903 Beach Babies 1Day Care Center4175-005-022
Beach Babies 2Day Care Center4163-008-043
Beach Cities Learning Center OnlineSchool4166-006-900, 4166-007-900, 4166-008-900
Bruce's BeachYouth Center4177-023-900
Center FieldYouth Center4170-001-902
Circle of LoveDay Care Center4170-025-025
Creative Kids ElementarySchool4170-007-007, 4170-007-008, 4170-007-024
Creative Kids PreschoolDay Care Center4170-007-007, 4170-007-008, 4170-007-024
del Sol PreschoolDay Care Center4164-016-036
Der Kinder Garden PreschoolDay Care Center4164-002-031
Futures Academy - Manhattan BeachSchool4138-011-027
Grand View Elementary SchoolSchool
4176-005-901, 4177-002-900,
4177-010-900, 4177-011-900,
4177-011-901
JEI Learning CenterYouth Center4164-002-001
Journey of Faith SchoolDay Care Center4168-011-001
Kumon Math and Reading Center of
Manhattan BeachYouth Center4173-008-033
La Marina PreschoolDay Care Center4169-022-024
Larsson Street ParquetteYouth Center4169-014-900
34 NameSensitive Use
Type
County Assessor's
Identification Number(s) Lindamood-Bell Manhattan Beach Learning CenterYouth Center4138-011-022
Live Oak ParkYouth Center
4178-020-902, 4178-021-902,
4178-022-903, 4178-024-903,
4178-025-900, 4179-001-901 Magic Rainbow Preschool and
KindergartenDay Care Center4165-024-019
Manhattan AcademySchool4164-016-037 Manhattan Academy - Infant CenterDay Care Center4164-001-030 Manhattan Academy ItDay Care Center4164-032-004 Manhattan Beach Badminton ClubYouth Center4171-026-010 Manhattan Beach Middle SchoolSchool4165-007-902, 4165-007-903 Manhattan Beach Nursery SchoolDay Care Center4163-023-008 Manhattan Beach PreschoolDay Care Center4166-006-900, 4166-007-900, 4166-008-900 Manhattan Beach Sports ComplexYouth Center4138-027-901 Manhattan Beach Village TurfYouth Center | 41 38-026-900, 4138-026-902Manhattan Country Club PreschoolDay Care Center4138-018-908 Manhattan Heights Park and Community CenterYouth Center4164-017-901
Marine Avenue ParkYouth Center ] 4138-027-903,4138-027-904Mathews ParketteYouth Center4155-028-900 MathnasiumYouth Center4168-013-014 Meadows Avenue Elementary SchoolSchool4166-011-900, 4166-012-900 Mira Costa High SchoolSchool4168-002-906 Montessori School of Manhattan BeachSchool4168-002-008 Ok Corral Child CenterDay Care Center4169-028-004 Pacific Elementary SchoolSchool4170-014-900, 4170-001-902 Pennekamp Elementary SchoolSchool
4168-001-907,
4168-001-909,
4168-001-911,
4168-001-913,
4168-001-908,
4168-001-910,
4168-001-912,
4168-002-903 Polliwog ParkYouth Center | 4165-007-902,4165-007-903Robinson Elementary SchoolSchool4181-001-900, 4181-012-902 Sand Dune ParkYouth Center | 4176-005-900,4175-004-901Shalem Early Childhood Learning CommunityDay Care Center4171-014-036
Study Hut ConsultingYouth Center4184-003-006 Study Hut TutoringYouth Center4170-024-001 The Academy at Manhattan Beach: A Bright Horizons PreschoolDay Care Center4166-020-028
The Launching PadDay Care Center4149-008-019
Trinity Lutheran PreschoolDay Care Center | 4167-013-018, 4167-013-020 35 NameSensitive Use
Type
County Assessor's
Identification Number(s)
Valley ParkYouth Center
4182-029-902, 4181-004-900,
4181-004-901, 4181-005-900,
4181-005-901,4182-029-903,
4182-030-900, 4182-030-901,
4182-030-902, 4182-030-903 Vistamar SchoolSchool4138-010-008 Whole Brain Learning CenterYouth Center4166-020-034 SECTION 9. Categorically Exempt from CEQA. The People of the City find that theactions contemplated by the Measure, including the issuance of commercial cannabis businesspermits, are categorically exempt from the California Environmental Quality Act ("CEQA") underSection 15060(c)(2) and Section 15060(c)(3) of Title 14 of the State Code of Regulations and theholding by the State Supreme Court in Tuolumne Jobs & Small Business Alliance v. SuperiorCourt (2014) 59 Cal.4th 1029. Further, the People of the City find that pursuant to Section6.30.060 of Chapter 6.30 of the City Municipal Code as codified by this Measure, cannabisretailers are a use permitted by right in certain zoning districts within the City. As permitted inthose zoning districts, cannabis retailers are similar to already existing permitted general uses inthose zoning districts with the only difference being the type of product being delivered or sold.
SECTION 10. ConflictinQ Measures. The People of the City find and declare that theprovisions of the Measure relating to the regulation of commercial cannabis activity in the Citymay conflict with one or more provisions of other initiative measures. It is the intent of the Peoplethat if the Measure receives a greater number of affirmative votes than a conflicting measure atthe same election, this Measure shall prevail in its entirety over a conflicting measure.
SECTION 11. Severability. If any provision, section, paragraph, sentence, phrase, orword of the Measure is rendered or declared invalid, illegal, or unconstitutional by any final actionin a court of competent jurisdiction or by reason or any preemptive legislation, suchunconstitutionatity 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 the Measure to any other personor circumstance, and to that end, the provisions hereof are severable. It is hereby declared to bethe intention of the People of the City that that the Measure would have been adopted had suchunconstitutional illegal or invalid provision, section, paragraph, sentence, phrase, or word notbeen included herein.
SECTION 12. Liberal Construction. The Measure is an exercise of the initiative power ofthe People of the City to provide for safe and regulated access to cannabis and cannabis products,and shall be liberally construed to effectuate that purpose.
SECTION 13. Legal Defense. If approved by a simple majority of voters, and thereafterchallenged in court of competent jurisdiction, the City shall defend the Measure in such court ofcompetent jurisdiction. The People of the City by approving this Measure by a simple majority ofvoter hereby declare that the proponent(s) of the Measure have a direct and personal stake indefending the Measure from constitutional or statutory challenges to the Measure's validity orimplementation. In the event the City fails to defend the Measure, or the City fails to appeal anadverse judgment against this Measure, in whole or in part, in any court of competent jurisdiction,the Measure's proponents) shall be entitled to assert his, her, or their direct personal stake by 36 defending the Measure's validity and implementation in any court of competent jurisdiction andshall be empowered by the People through this Measure to act as agents of the People of theCity, and the City shall indemnify the proponent(s) for reasonable attorneys' fees.
SECTION 14. Effective Date. The Measure shall be in full force and effect upon the tenthday following certification by the City Council of the election returns indicating passage of theMeasure by a majority of the voters casting votes on the Measure. 37