Maywood City Council
January 11, 2023

Agreement Number 9200000000HIP2122
2 3. Upon receipt of (i) a fully executed AGREEMENT, (ii) CITY's written certification of the amounts of CITY's STP-L Funds Balance and CITY's HIP Funds Balance, as defined herein, which CITY's STP-L Funds Balance and CITY’s HIP Funds Balance show that CITY has sufficient STP-L Funds and HIP Funds to meet its obligations hereunder, and (iii) LACMTA's deduction of CITY's STP-L Funds and CITY's HIP Funds as provided in paragraph 1 above, LACMTA shall pay CITY $274,678 of LACMTA Funds which includes the deduction for the processing fee described in paragraph 5 below. For purposes of this AGREEMENT, CITY's "STP-L Funds Balance" and CITY's "HIP Funds Balance" shall mean the amounts of funds contained in CITY's STP-L Funds and CITY's HIP Funds accounts as of the date that this AGREEMENT is fully executed, which include CITY's apportionment share of FY22 STP-L Funds and share of HIP Funds from the federal Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) that was enacted on December 27, 2020. If the STP-L Funds Balance and HIP Funds Balance become insufficient to satisfy CITY's exchange obligations hereunder, CITY hereby authorizes LACMTA to deduct from CITY's future balance of STP-L funds until LACMTA has in the aggregate received the amount of CITY's STP-L Funds and CITY's HIP Funds specified in paragraph 1 above.

4. CITY must complete and submit an Automated Clearing House (ACH) form (Exhibit A) through LACMTA's website to allow LACMTA to make disbursements electronically.

Disbursements via ACH will be made at no cost to CITY. If electronic disbursements are not the preferred method of disbursement, CITY may request an exception in writing.

5. CITY shall pay LACMTA a two-percent (2%) processing and administrative fee (the "Processing Fee") in connection with the exchange contemplated by this AGREEMENT.

The Processing Fee shall be assessed against the total amount of LACMTA Funds payable to CITY. CITY hereby authorizes LACMTA to deduct the Processing Fee from the amount LACMTA is to pay CITY hereunder.

6. CITY shall expend the LACMTA Funds on an STP-L and HIP Eligible Project and by the Lapsing Date, consistent with the Statement of Work, Schedule and Budget provided in Exhibit B. For the purposes of this AGREEMENT, the "Lapsing Date" shall mean the date that is three (3) years from the date that this AGREEMENT is fully executed. Any LACMTA Funds not expended by the Lapsing Date shall lapse and be returned to LACMTA within thirty (30) days of the Lapsing Date for further programming to third parties as LACMTA determines in its sole discretion.

A. For the purposes of this AGREEMENT, the term "Eligible Project" shall mean the transportation activities described in Exhibit B that: i) would normally qualify under Section 133(b) of Title 23, U.S.C: or ii) are for costs related to preventive maintenance, routine maintenance, debt service payments, availability payments, operations, personnel (including salaries of employees and those employees who have been placed on administrative leave, or contractors), and coverage for other revenue losses due to the coronavirus pandemic. Any other applicable federal regulations and standards related to procurement and project delivery issues may be substituted with applicable state and local regulations, standards, and policies.

Agreement Number 9200000000HIP2122
3 B. The term "expend" as used in Section 6 shall mean "encumbered by an awarded contract or paid for an eligible transportation activity".

C. If the LACMTA Funds have lapsed and CITY has not returned all or a portion of the lapsed LACMTA Funds to LACMTA, then CITY shall be considered to be in default and agrees that such outstanding payments shall be paid from CITY funds in the following priority: first, from any of CITY's unobligated HIP Funds Balance, then from CITY's STP-L Funds Balance, then from CITY's Proposition A local return funds, then from CITY's Proposition C local return funds, then from CITY's Measure R local return funds, and then from CITY's Measure M local return funds. If CITY is in default hereunder, in addition to all rights and remedies available to LACMTA at law or in equity and without further notice or ability to cure by CITY, CITY hereby authorizes LACMTA to withhold the applicable HIP, STP-L or local return funds in the amount needed to satisfy the outstanding amount of lapsed LACMTA Funds due and owing to LACMTA prior to LACMTA transferring the balance of such funds to the CITY in accordance with the applicable state laws or ordinances.

7. CITY must use the LACMTA Funds in the most cost-effective manner. If CITY intends to use a consultant or contractor to implement all or part of the STP-L and HIP Eligible Project, LACMTA requires that such activities be procured in accordance with CITY's contracting procedures and be consistent with State law as appropriate. CITY will also use the LACMTA Funds in the most cost-effective manner when the LACMTA Funds are used to pay "in-house" staff time. CITY staff or consultants with project oversight roles may not award work to companies in which they have a financial or personal interest. This effective use of funds provision will be verified by LACMTA through on-going project monitoring and through any LACMTA interim and final audits.

8. LACMTA, and/or its designee, shall have the right to conduct audits of CITY's use of the LACMTA Funds, as deemed appropriate, such as financial and compliance audits; interim audits; pre-award audits, performance audits, and final audits. CITY agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with Generally Accepted Accounting Principles (GAAP). CITY's records shall include, without limitation, any supporting evidence deemed necessary by LACMTA to substantiate CITY's use of LACMTA Funds. These records must be retained by CITY for five years following CITY's last use of the LACMTA Funds. CITY shall reimburse LACMTA for any expenditure not in compliance with the Scope of Work and/or not in compliance with other terms and conditions of this AGREEMENT. The eligibility of costs for CITY's own expenditures submitted to LACMTA for the Eligible Project shall be in compliance with Office of Management and Budget (OMB) Circular A-87 (relocated to Title 2 in the Code of Federal Regulations, Subtitle A, Chapter II, part 225). The eligibility of costs for CITY's contractors, consultants, and suppliers expenditures submitted to LACMTA through CITY's Monthly Progress Reports and Quarterly Expenditures shall be in compliance with OMB Circular A-87 (as relocated) or Federal Acquisition Regulation (FAR) Subpart 31 (whichever is applicable). Findings of the LACMTA audit are final.

When LACMTA audit findings require CITY to return monies to LACMTA, CITY agrees to

Agreement Number 9200000000HIP2122
4 return the monies within thirty (30) days after the final audit is sent to CITY.

9. The terms of this AGREEMENT shall commence on the date that this AGREEMENT is fully executed and shall terminate once CITY has expended all the LACMTA Funds and all LACMTA audit and reporting requirements have been satisfied.

10. CITY shall fully indemnify, defend and hold LACMTA and its officers, agents, and employees harmless from and against any liability and expenses, including, without limitation, defend costs, any costs or liability on account of bodily injury, death or personal injury of any person, or for damages of any nature whatsoever arising out of (i) a breach of CITY's obligations under this AGREEMENT; or (ii) any act or omission of CITY or its officers, agents, employees, contractors, or subcontractors in the use of the LACMTA Funds.

11. LACMTA shall fully indemnify, defend and hold CITY and its officers, agents, and employees harmless from and against any liability and expenses, including, without limitation, defend costs, any costs or liability on account of bodily injury, death or personal injury of any person, or for damages to or loss of risk of property, any environmental obligations, any legal fees and any claims for damages of any nature whatsoever arising out of (i) a breach of LACMTA's obligations under this AGREEMENT; or (ii) any act or omission of LACMTA or its officers, agents, employees, contractors, or subcontractors in the use of CITY's STP-L Funds and CITY's HIP Funds.

12. This AGREEMENT may be amended or modified only by mutual written consent of LACMTA and CITY.

13. Any correspondence, communication, or contact concerning this AGREEMENT shall be directed to the following:

CITY OF MAYWOOD
Jennifer E. Vasquez, City Manager
City of Maywood
4319 E. Slauson Ave
Maywood, CA 90270
LACMTA
Michael Richmai
Senior Manager, Countywide Planning and Development
One Gateway Plaza (Mail Stop: 99-23-3)
Los Angeles, California 90012-2952

14. This AGREEMENT shall be interpreted and governed by the laws of the State of California.

15. This AGREEMENT constitutes the entire understanding between the parties with respect to the subject matter herein.

Agreement Number 9200000000HIP2122
5 IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their respective officers as of the date stated below.

LOS ANGELES COUNTY CITY OF MAYWOOD

METROPOLITAN TRANSPORTATION

AUTHORITY
By: By:

Stephanie N. Wiggins Jennifer E. Vasquez
Chief Executive Officer City Manager

APPROVED AS TO FORM: APPROVED AS TO FORM:

Dawyn R. Harrison Roxanne Diaz
Interim County Counsel City Attorney
By: By:

Deputy City Attorney

Agreement Number 9200000000HIP2122
Exhibit A

AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION

Agreement Number 9200000000HIP2122
Exhibit A

AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION

Agreement Number 9200000000HIP2122
Exhibit A

AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION

Agreement No. 9200000000HIP2122
Exhibit B

STATEMENT OF WORK
Project Title:

FY 2022-23 Pavement Rehabilitation Project
Project Description:

Pavement maintenance and rehabilitation improvements at various streets as identified on City’s Pavement Management Program. The proposed improvements include slurry seal, asphalt concrete coldmill and overlay, localized asphalt pothole repairs, construction of curb ramps, signage and striping.

Project Schedule:

Advertise January/February 2023
Award Contract March/April 2023
Start Construction May/June 2023
Complete Construction December 2023
Project Funding:

SB-1/RMRA $630,728
Measure M Local Return $434,636
Measure R Local Return $367,918
LACMTA Funds* $274,678
Total Project Cost: $1,707,960
*Net of 2% processing and administrative fee.

Agreement No. 9200000000HIP2122
Exhibit B
Project Map:

AGENDA REPORT

CITY OF MAYWOOD
AGENDA ITEM NO. 11.

DATE: January 11, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: SHIRLEY QUINONES, EXECUTIVE ASSISTANT/DEPUTY CITY CLERK SUBJECT: DISCUSSION OF CITY COUNCIL APPOINTMENTS TO OUTSIDE AGENCY BOARDS

AND COMMITTEES
RECOMMENDATION:

Staff recommends that the City Council review the City Council Appointment List, provide direction to staff regarding any necessary changes for appointments on the list, and approve the Appointment List, as revised by the City Council.

BACKGROUND:

City Council members are appointed to serve on various governmental agency committees, boards, or commissions of a public agency, special district, and joint powers agency or authority. These are related to local, regional, and state affairs. The City Council appoints a delegate and an alternate to represent the City and attend that agency's meetings. At this time, it is appropriate for the City Council to review the list and make appointments as desired. A list of the various agencies is set forth in Attachment 1 to this report. The City Council may make appointments to each entity by nomination.

DISCUSSION:

Annually, the City Council reviews the various designated members on the submitted City Council Appointment List and makes revisions as appropriate.

When such appointments occur, the City must comply with Regulation 187002.5 of the Fair Political Practices Commission (FPPC) which mandates that a Form 806 be filed to report additional compensation that officials receive when they are appointed to positions on committees, boards, or commissions of a public agency, special district, and joint powers agency or authority. As shown in the attached list of current appointments, there are several entities that compensate their board members. The current Form 806 is available on the City's website; it identifies each appointed position receiving compensation; the salary or stipend for each appointed position; the name of the public official appointed to the position; the name of any public official appointed as an alternate; and, the term of the appointment.

Regulation 18702.5 allows a public official to participate in his or her appointment to paid government positions if the body making the appointment completes and posts form 806 on its website. Accordingly, any council member who is nominated to serve on any of these entities, may participate in the Council's discussion and vote on that appointment.

FPPC Form 806 will be finalized, formatted, and posted with the names of the City's appointees and alternates,

following Council action. A current Form 806 is attached for Council review.

LEGAL REVIEW:

The City Attorney has reviewed this staff report.

FISCAL IMPACT:

There is no fiscal impact with this action.

ATTACHMENT(S)

1. Appointments to Boards Committees - Rev.12.14.2022

2. Form 806 2022 rev 12142022

CITY OF MAYWOOD

CITY COUNCIL APPOINTMENTS TO BOARDS/COMMITTEES
AS OF December 14, 2022
Boards/Committee Delegate Alternate Date/Time
(Term if Applicable)
Stipend/
Voluntary
California Contract Cities
Board of Directors
17315 Studebaker Road #210
Cerritos, CA 90703
(562) 622-5533
[email protected]
Jessica
Torres
Ricardo
Lara
3 rd Wednesday
of the month
6:00 p.m.

Voluntary
Eco-Rapid Transit
Board of Directors
16401 Paramount Blvd.

Paramount, CA 90273
(562) 663-6850
Angelina
Martinez
Raul
Rodriguez
2 nd Wednesday
of the month 6:00
p.m.

Stipend $100
Gateway Cities Council of
Governments
16401 Paramount Boulevard
Paramount, CA 90723
(562) 663-6850
Heber
Marquez
Jessica
Torres
1 st Wednesday
of the month
6:00 p.m.

Stipend $125
Greater LA County Vector Control
District (GLACVCD)
12545 Florence Avenue
Santa Fe, CA 90670
(562) 944-9656
[email protected]
Jessica
Torres
2 nd Thursday of
the month
7:00 p.m.

Term: 12/14/2024
Stipend $100
HUB Cities Board of Directors
2677 Zoe Avenue
Huntington Park, A 90255
323-586-4700
Eddie
De La Riva
Frank
Garcia
3 rd Thursday of
the month
5:30 p.m.

Stipend $200
League of California Cities;
Los Angeles Division
700 N. Alameda,
Los Angeles, CA 90012
(626) 716-0076
[email protected]
Ricardo
Lara
Eddie
De La Riva
1 st Thursday
of the month
6:00 p.m.

Voluntary
Sanitation Districts of LA County
1955 Workman Mill Road
District 2
Whittier, CA 90607
(562) 908-4288 x 1500
[email protected]
Heber
Marquez
Ricardo
Lara
2 nd Wednesday of
the month 1:30
p.m.

Stipend
$125
Southern California Association of
Governments
900 Wilshire Blvd Ste 1700
Los Angeles, CA 90017
(213) 236-1800
Maywood – District 27
Frank
Garcia
Eddie
De La Riva
Annual General
Assembly
Business Meeting
(May 4-5, 2023)

FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)
Comment:

A Public Document
Appt Date and
Length of Term
Agency Report of:

Public Official Appointments

2. Appointments

3. Verification
I have read and understand FPPC Regulation 18702.5. I have verified that the appointment and information identified above is true to the best of my information and belief.

Signature of Agency Head or Designee Print Name Title (Month, Day, Year) Agency Boards and
Commissions Name of Appointed Person Per Meeting/Annual Salary/Stipend (Last, First)
(Last, First)
(Last, First)
(Last, First)
Alternate, if any
Alternate, if any
Alternate, if any
Alternate, if any
(Last, First)
(Last, First)
(Last, First)
(Last, First)
Name
Name
Name
Name
$0-$1,000
$0-$1,000
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
Other
Other
Other
Other
California
Form

1. Agency Name
Designated Agency Contact (Name,Title)
E-mail
Division, Department, or Region (If Applicable)
806
For Official Use Only
Area Code/Phone Number
(Month, Day, Year)
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date

Length of Term

Length of Term

Length of Term

Length of Term
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
 Per Meeting: $
 Per Meeting: $
 Per Meeting: $
 Per Meeting: $
Page _____ of _____
Date Posted:

FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)
A Public Document
Appt Date and
Length of Term
Agency Report of:

Public Official Appointments
Continuation Sheet

2. Appointments
Agency Boards and
Commissions Name of Appointed Person Per Meeting/Annual Salary/Stipend (Last, First)
(Last, First)
(Last, First)
(Last, First)
Alternate, if any
Alternate, if any
Alternate, if any
Alternate, if any
(Last, First)
(Last, First)
(Last, First)
(Last, First)
Name
Name
Name
Name
$0-$1,000
$0-$1,000
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
Other
Other
Other
Other
California
Form

1. Agency Name
806
(Month, Day, Year)
Date Posted:
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date
 ____/____/____
Appt Date

Length of Term

Length of Term

Length of Term

Length of Term
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
 Estimated Annual:
 Per Meeting: $
 Per Meeting: $
 Per Meeting: $
 Per Meeting: $
(Last, First)
(Last, First)
Alternate, if any
Alternate, if any
(Last, First)
(Last, First)
Name
Name
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
Other
Other
 ____/____/____
Appt Date
 ____/____/____
Appt Date

Length of Term

Length of Term
 Estimated Annual:
 Estimated Annual:
 Per Meeting: $
 Per Meeting: $
Page _____ of _____

AGENDA REPORT

CITY OF MAYWOOD
AGENDA ITEM NO. 12.

DATE: January 11, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: JENNIFER VASQUEZ, CITY MANAGER
SUBJECT: CONSIDERATION OF APPROVING THE COMMUNITY BENEFIT FUND

APPLICATION FROM EAST YARD COMMUNITIES FOR ENVIRONMENTAL JUSTICE (EYCEJ) IN THE AMOUNT OF $10,000.

RECOMMENDATION:

Staff recommends that the City Council approve the Community Benefit Fund Application from East Yard communities for Environmental Justice (EYCEJ) in the amount of $10,000.

BACKGROUND:

The Application is dated September 12, 2022 and was received by email from the applicant. The City of Maywood has established a “Community Based Fund” to support community-based programs and activities.

Applicant eligibility is determined by the City’s Community Benefit Fund Guidelines and Procedures (“Guidelines”) for the distribution of funds to eligible organizations that provide community-based programs, community activities and educational activities.

This is the first Community Benefit Fund application submitted by East Yard Communities for Environmental Justice.

DISCUSSION:

EYCEJ has been in existence since 2001 and is a nonprofit community-based organization located in Commerce and works to facilitate self-advocacy in the East Los Angeles, Southeast Los Angeles and Long Beach areas. They work with adults and young people collectively for a safe and healthy environment for communities that are disproportionately suffering from the negative impacts of industrial pollution.

EYCEJ is requesting a $10,000 grant to be used to provide stipends for community members to help paint two (2) large-scale murals at Riverfront Park and Maywood Park about the history of Sleepy Lagoon and Latinx/Indigenous water education, as well as conduct outreach for the murals.

Funds from this grant will be utilized to provide emerging artists from Maywood compensation for painting two (2) large-scale murals in their community. EYCEJ will help organize residents. Participants will receive mentorship from established local artists while learning painting techniques and receiving education on local history and environmental justice. This project aims to beautify two (2) Maywood parks with large-scale educational murals highlighting the area's significant cultural and environmental history. The project was developed by local artists and the community artist stipend is intended to cultivate and promote homegrown

artists and community leaders in Maywood. These murals were requested by Maywood residents in previous scoping meetings and will be created by residents.

EYCEJ has received a State Coastal Commission Coastal Stories grant for Sleepy Lagoon Murals, which will match the community member stipend funding requested for the project. The requested amount will be $9,000 for community art stipends and $1,000 for community outreach.

Qualification Review
EYCEJ, a non-profit agency, provides environmental education and jobs for residents and artists of the city.

The Eligible Organization was in existence prior to submitting this application and has a record of successfully providing the services for which funding is requested. In addition, per the Grant guidelines, the maximum amount will be no more than $5,000. However, in limited circumstances, the City Council has the discretion to award grants in the amount not to exceed $10,000.

The Guidelines also require that an Eligible Organization provide an eligible service or activity defined as a program, service, activity, event, or other similar activity that has a benefit to the residents of the City or a specified target group by: (i) enhancing the quality of life or the delivery of services in the City; or (ii) providing educational opportunities for the residents of the City. The proposed murals will be educational narratives about Sleepy Lagoon, environmental/social justice, and Latino/Indigenous water heritage. Participants will receive mentorship, technical training, and art education on mural painting techniques by established artists from similar cultural backgrounds as local residents.

LEGAL REVIEW:

The City Attorney has reviewed this report
FISCAL IMPACT:

The City currently has budgeted $75,000 in the Community Benefit Fund for Fiscal Year 2022/2023. To date, $59,300 has been spent from this account. Therefore, there is an adequate budget, and no additional budget appropriation is needed. Fund = 100–General Fund; Department = 302- Community Services; General Ledger (GL) account = 6301 – Community Benefit Fund Expenditures; Project Code = 9999 - Other F.Y. 22-23 Impact: $10,000 Current F.Y. Budget: $75,000 Fund Impacted: 100 - General Fund Budget adjustment requested: $0 Source of funds:

Account = 6301 - Community Benefit Fund
Updated Account Budget: $15,700
Account Number: 100-302-0000-6301- 9999
Account Number: 100-302-0000-6301-9999
Fund: 100 General Fund
Department = 302 Community Services
GL Account = 6301 Community
Development Fund
Project = 9999 Non-Project
For Fiscal Year: 2022/2023

ATTACHMENT(S)

1. EYCEJ CBF Application 9.12.22

2. EYCEJ IRS Letter

CITY OF MAYWOOD

COMMUNITY BENEFIT FUND APPLICATION
Please Type/Print Information
(attach additional pages as needed)
Application Funding Cycle
Q1: July 1 – September 30
Q2: October 1- December 31
Q3: January 1 - March 30
Q4: April 1 - June 30
Date of Application: _
Amount Requested: _
Organization Name: Phone Number:

Street Address: Fax Number:

City, State, Zip: Federal EIN:

Contact Person:

Contact Email Address:

Provide a detailed description of your organization. For example, are you a school, schoolbased or affiliated entity, youth program, community based organization, etc.

Does your organization have non-profit status with the Internal Revenue Service? Yes No (If yes, attach documentation)
How long has this organization been in existence (provide date)? Is the organization located/based in Maywood or does it provide programs or services to Maywood residents? Yes No If yes, please explain.

Describe how the requested funds will be used? Attach a proposed budget.

X
$10,000
9/12/2022
East Yard Communities for Environmental Justice (EYCEJ) 2317 Atlantic Boulevard
Commerce, California 90040 46-5685097
X
X
EYCEJ is an environmental justice nonprofit located in neighboring Commerce, the organization conducts organizing and has members who live in Maywood
This grant will fund artist stipends for community members to help paint 2 large scale murals in Maywood (at Riverfront and Maywood Parks) about Sleepy Lagoon and Latinx/Indigenous water education, as well as conduct outreach with EYCEJ for the murals.
323-263-2113
Laura J Cortez
[email protected]
East Yard Communities for Environmental Justice (EYCEJ) is a community-based organization that works to facilitate self-advocates in East Los Angeles, Southeast Los Angeles and Long Beach.

We work with adults and youth collectively for a safe and healthy environment for communities that are disproportionately suffering the negative impacts of industrial pollution. 2001

What is the anticipated time-frame to provide the proposed program, service, event activity or goods and the expenditure of the requested funds?
Describe the organization's efforts in obtaining funding from other sources? How will the requested funds have a benefit to Maywood residents? How will the requested funds enhance the quality of life or the delivery of services for Maywood residents?
How will the requested funds provide educational opportunities for Maywood residents or students?
Has your organization previously received funding from the City of Maywood? Yes No If yes, identify the use of the funds, total amount, and fiscal year in which the funds were received.

Is a member of your organization's board or executive leadership a City employee, an elected or appointed City official, or a family member of a City employee or elected or appointed City official? Yes No If yes, please explain.

By my signature below, I hereby certify, under penalty of perjury, that I am qualified to sign for and bind the named organization and that the information contained within and submitted with this application is complete, true and accurate. I have received a copy of the Community Benefit Fund Guidelines and Procedures and agree to abide by its provisions. If awarded funding, an agreement will be required to be executed.

Date: Signature:

Print Name and Title:

Date Received Eligibility Verified Date Approved Date Denied Amount Awarded
Revised 3.30.22
The local artist stipends will be facilitated between January and March of 2023.

EYCEJ has received a State Coastal Commission Coastal Stories grant for the Sleepy Lagoon Murals, this funding will match community member stipend funding for the project.

This will expand funding for emerging artists from Maywood to receive compensation for painting 2 large scale murals in their community. They will help organize residents, receive mentorship from established local artists while learning painting techniques and receiving education on local history and environmental justice.

This project aims to beautify 2 Maywood parks with large scale educational murals highlighting the significant cultural and environmental history of the area. The project was developed by local artists and the community artist stipend is intended to cultivate and promote homegrown artists and community leaders in Maywood. These murals were requested by Maywood residents in previous scoping meeting, and will be created by residents.

Both murals will be educational narratives about Sleepy Lagoon, environmental/social justice,and Latino/ Indigenous water heritage. Murals will include interactive QR codes that connect to an educational website.

Participants will receive mentorship, technical training and art education on mural painting techniques by established artists from similar cultural backgrounds as local residents. 09 / 26 / 2022
Laura J. Cortez, Organizer & Co-Executive Director

INTERNAL REVENUE SERVICE
P. 0. BOX 2508
CINCINNATI, OH 45201

DEPARTMENT OF THE TREASURY
Date: NOV19 2014

EAST YARD COMMUNITIES FOR

ENVIRONMENTAL JUSTICE
2317 ATLANTIC BLVD
COMMERCE, CA 90040-1201
Employer Identification Number:
46- 56850 97
DLN:
17053252331013
Contact Person:

RONALD D BELL
Contact Telephone Number:
(877) 829-5500
Accounting Period Ending:

December 31
Public Charity Status:
170(b) (1) (A) (vi)
Form 990 Required:

Yes
Effective Date of Exemption:

April 12 2013
Contribution Deductibility:

Yes
ID# 31185
Dear Applicant:

Addendum Applies:

Yes
We are pleased to inform you that upon review of your application for tax exempt status we have determined that you are exempt from Federal income tax under section 501(c) (3) of the Internal Revenue Code. Contributions to you are deductible under section 170 of the Code. You are also qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the Code. Because this letter could help resolve any questions regarding your exempt status, you should keep it in your permanent records.

Organizations exempt under section 501(c) (3) of the Code are further classifiedas either public charities or private foundations. We determined that you are a public charity under the Code section(s) listed in the heading of this letter.

For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter “4221-PC” in the search barto view Publication 4221-PC, Compliance Guide for 501(c) (3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements.

Letter 947

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EAST YARD COMMUNITIES FOR
We have sent a copy of this letter to your representative as indicated in yourpower of attorney.

Sincerely,
Director, Exempt Organizations
Letter 947

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EAST YARD COMMUNITIES FOR

ADDENDUM
This supersedes our letter dated February 4, 2014, which was issued with an incorrect Employer Indenitifcation Number. We have udpated our records to reflect the proper Employer Indentification Number as shown in the heading ofthis letter.

Letter 947

AGENDA REPORT

CITY OF MAYWOOD
AGENDA ITEM NO. 13.

DATE: January 11, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: CALVIN KO, ASSISTANT PLANNER
SUBJECT: CONSIDERATION OF THE RENEWAL OF A COMMERCIAL CANNABIS MICROBUSINESS LICENSE FOR CHRON MAYWOOD, LLC.

RECOMMENDATION:

Staff recommends that the City Council approve the application for a commercial cannabis microbusiness license renewal for Chron Maywood (Chron), LLC, located at 5415 Maywood Avenue, for a one-year term expiring on December 8, 2023, and authorize the Director of Building and Planning to notify the applicant in writing of the City Council's decision.

BACKGROUND:

On August 28, 2019, the Maywood City Council adopted ordinance 19-03 that changed the status of commercial cannabis uses and businesses in the City. Most significantly, the ordinance banned the issuance of any new commercial cannabis licenses. Applications that were in the process had to have received their license and conditional use permit prior to the effective date of the Ordinance. The adoption of this ordnance also made any existing commercial cannabis business a non-conforming use subject to the provisions of section 16.2 of Appendix C of the Zoning Code.

Ordinance 19-03 ("Ordinance") created a process for the renewal of existing licenses. The ordinance details the application renewal process by establishing requirements to determine if an application can be renewed or denied. These requirements must be met to allow the City Council to determine whether a license should be renewed, or if there are grounds for denial.

This process requires that the City Council determines if the cannabis entries operate lawfully. The information necessary to make this determination is provided by Hinderliter, de Llamas & Associates ("HdL"). Every year, the business is inspected quarterly to determine if the business is operating in compliance with State law and the City's Ordinance. The inspection also ensures the business operates in a safe manner to protect both employees and customers at each business. Staff accompanies HdL on these inspections to verify compliance with the approved Conditions of Approval for the Conditional Use Permit. These inspections with their suggested remedial actions help to ensure proper operation prior to license renewal.

As part of this renewal process, HdL conducts criminal background checks on all owners, managers, employees, contractors and volunteers employed in Maywood's commercial cannabis industry. All who are found to have disqualifying factors will not be permitted to work, own, manage or volunteer for a cannabis business in Maywood. HdL will also conduct a financial audit annually, which includes the verification of the tracking and tracing of the product and matching the product with its respective transaction. This measure will detect illegal diversion or the sale of an unlicensed (illegal) product, which is central to the verification of lawful

and complete remittance of the local cannabis tax.

DISCUSSION:

Chron's Conditional Use Permit was approved on June 19, 2018. Chron is a cannabis manufacturer, distributor, cultivator, and vehicle delivery operator that is currently finishing their tenant improvement and trying to obtain their business license. Their first inspection was conducted on December 7, 2022. No sales tax payments have been made.

Chron currently has a microbusiness license with four components: (1) vehicle delivery retail CC-32, (2) cultivation CC-34, (3) manufacturing CC-31 and (4) distribution CC-33. They are licensed by the State of California Bureau of Cannabis Control (license #C12-0000187-LIC) as a microbusiness, and their license is valid through July 15, 2023.

Renewals per the Ordinance are to be renewed annually. The renewal process began last year and is continued throughout the year with quarterly inspections and an annual audit. This business is beginning to utililize its vehicle delivery and cultivation license. The other licenses have not been started as they are making modifications to the interior configuration and have submitted plans to the building department for approval of new door locations. This is important as the floor area of the premises is controlled by each license and does not overlap. The doorways are there to provide a physical separation of each license area. There were other issues that are being addressed before the site moves forward with being fully operational (See attached quarterly inspection report). Another quarterly inspection will be conducted in March of 2023 along with any inspection required to get the business in compliance. No audit was conducted as they had just started trying to become operational. Staff will provide an update when the plans are approved and the business becomes fully operational. As a result of the adherence to the regulations, the evaluation of Chron's commercial cannabis license renewal application was completed.

LEGAL REVIEW:

The City Attorney has reviewed this report.

FISCAL IMPACT:

Chron will be taxed as a microbusiness for purposes of Cannabis Tax. As such, they will be taxed at a 10% Cannabis Sales Tax. Tax payments will be made directly to the City on a quarterly basis. Taxes collected help support the City and the services provided for the residents. Chron is not currently in operation and therefore no tax payments have been made. Issuance of the business license will allow Chron to operate as a microbusiness and generate Cannabis Sales Tax as well as Sales Tax Revenue for the City's General Fund.

ATTACHMENT(S)

1. Chron Maywood LLC_Maywood_Inspection Engagement Letter 12-7-2022

2. Documents for Inspection 2022

3. Chron Maywood_Maywood_Compliance Inspection 12-07-2022

November 29, 2022
Salvador Pastor
Chron Maywood, LLC
5415 Maywood Ave.

Maywood, CA 90270
(858) 346-3512
[email protected]
Notice of Compliance Inspection
Dear Mr. Pastor,
The purpose of this letter is to notify Chron Maywood, LLC that the City of Maywood has retained the services of HdL Companies (HdL) to conduct a compliance inspection of your commercial cannabis business.

Please be advised that on Wednesday, December 07, 2022, from 2:30 pm to 3:30 pm, HdL and City staff will conduct an inspection of your facility to review compliance with State and Local cannabis business regulations. The duration of the inspection is anticipated to be approximately one (1) hour. Please be prepared to produce business records as identified in the attached “Documents for Inspection” and participate in interviews as needed. Photographs may be taken of the facility, equipment, and inventory for documentation purposes. Photographs will not include identifiable features of employees or customers.

The City values its business relationship with Chron Maywood, LLC and looks forward to your cooperation and the opportunity to complete the compliance inspection in the most expeditious manner. If you have any questions or require additional information, please contact me, Calvin Ko, Assistant City Planner at 323-562-5723 and [email protected].

Respectfully,
Calvin Ko
Assistant Planner, City of Maywood
cc: Michelle Shaw, HdL Companies

v05-2022

DOCUMENTS FOR INSPECTION
The following items should be readily available onsite. Do not mail to the City prior to the date of inspection.

I. REQUIRED FOR ALL BUSINESSES
 Premises Diagram (Compliant with §15006)
 Copy of State and City Licenses (Compliant with §15039)  Current List of Employees
 Example of your Employee ID card (Compliant with §15043)  Burglar Alarm Contract
 Valid Lease (or proof of legal control of Premises)
 Prior City and State Inspection Reports (if applicable) II. RETAIL
In addition to Section I above:
 Example of your Exit Packaging
 Security Guard Card(s) and Weapons Permit(s)
 Security Guard Contract
 Proof of Vehicle Registration/Insurance
III. DISTRIBUTION
 Example of product packaging and labelling (i.e., CA Universal Label) (Compliant with §15303 & 17410)
 Proof of Vehicle Registration/Insurance
 Proof of GPS Tracking capability
 Proof of Liability Insurance
IV. MANUFACTURING
In addition to Section I above:
 Proof of written batch production records (Compliant with §17216)  Proof of Industrial Hygienist Inspection Report
V. TESTING
 All Items in Section I Above

CITY OF MAYWOOD

COMPLIANCE INSPECTION

SUMMARY
On December 07, 2022, HdL conducted a compliance inspection. This 4th Quarter inspection was designed to evaluate site security, inventory control, and record-keeping procedures. This was the first (1st) time HdL inspected the business.

The business has only been in operation approximately one (1) month before the inspection date. Although the Licensee was given notice of the scheduled inspection, along with a “Documents for Inspection” list, the Licensee’s employees on site were not prepared or equipped to produce electronic or hard copies of the required documents as requested. It was discovered that surveillance cameras were not installed in some areas of the licensed premises, including limited-access areas, corridors, and hallways between licensed premises, and where the video surveillance system (DVR) was stored. The General Manager explained that the cameras for the areas missing coverage were ordered before the commencement of operations, but they are back ordered and pending delivery. The Licensee was also not able to attend the inspection due to illness.

The Licensee was conducting commercial cannabis activities relative to that authorized by the license.

State regulations and local laws examined were discussed with the Licensee. Observations and recommendations are noted below:

RESULTS
§15000.1 GENERAL REQUIREMENTS Compliant
(a) Every person who conducts commercial cannabis activity shall obtain and maintain a valid license for each separate premises at which commercial cannabis activity is conducted. (b) Commercial cannabis activity shall only be conducted between licensees. (c) The licensee shall only conduct commercial cannabis activities authorized by the license and on the premises.
(d) All transfers of cannabis and cannabis products shall be conducted by a licensed distributor. (e) Licenses shall not be transferrable or assignable to another person or premises, except as provided in section 26050.2 of the Business and Professions Code.
(f) Applicants and licensees shall use their legal business name on all documents related to commercial cannabis activity.

Observation: N/A
§15000.3 PREMISES REQUIREMENTS Compliant
(a) A licensed premises shall not be in a location that requires persons to pass through a business that sells alcohol or tobacco or a private residence to access the licensed premises. (c) A licensed premises shall not include the living areas of a private residence, such as bathrooms, bedrooms, kitchens, and living rooms unless living areas are required to be included in the licensed premises.

Inspection Date December 07, 2022, Announced, Staff Present Inspection By Michelle Shaw
Business Name / DBA Chron Maywood, LLC
State Lic#: C12-0000187-LIC
Local Lic#: B20-000-122
Business Address 5415 Maywood Ave.

Maywood, CA 90270
Business Type Type 12 – Microbusiness (Non-Storefront, Manufacturer, Distributor, Cultivator)
Business Contact
Information
Salvator Pastor
(858) 346-3512
[email protected]

(d) Licensees shall ensure that the Department has immediate access to their licensed premises. (e) Nothing in this section shall be interpreted to prohibit two or more licensed premises from occupying separate portions of the same parcel of land or sharing common-use areas, such as a bathroom, breakroom, hallway, or building entrance.
(f) All structures included as part of the licensed premises shall be permanent structures.

Observation: N/A
§15000.7 STORAGE OF INVENTORY Compliant
(a) All cannabis and cannabis products must be stored within the licensed premises. (b) A licensee shall not store cannabis goods outdoors. (c) Bathrooms and changing facilities shall be separated from all storage areas by solid walls that extend from the floor to the ceiling. Employee break areas, if any, shall be separate and distinct from areas where cannabis and cannabis products are stored.
(d) Licensees may use additional shipping containers as temporary storage space on their licensed premises when their storage needs exceed the capacity of their storage space.

Observation: N/A
§15006 PREMISES DIAGRAM Non-Compliant
(a) An applicant shall submit to the Department, with the application, a complete and detailed diagram of the proposed premises.
(b) The diagram shall show the boundaries of the property and the proposed premises to be licensed, showing all boundaries, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and shall include a brief statement or description of the principal activity to be conducted therein. (c) The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises and identify limited-access areas. Cannabis activities shall be identified on the diagram. (d) The diagram shall show where all cameras are located and assign a number to each camera for identification purposes unless the premises is exempt from the video surveillance requirement pursuant to section 15315 or section 15044.
(e) The diagram shall be to scale to determine the bounds of the premises.

Observation:
• Employees were unable to produce an electronic or hard copy of the Premises Diagram as requested. §15025 ADDITIONAL PREMISES REQUIREMENTS FOR RETAILERS AND MICROBUSINESS Compliant
(a) Licensed retailers and licensed microbusinesses authorized to engage in retail sales shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this division.
(1) The sale and delivery of cannabis goods shall not occur through a pass-out window or a slide-out tray to the exterior of the licensed premises.
(2) Licensed retailers or licensed microbusinesses authorized to engage in retail sales shall not operate as or with a drive-in or drive-through except for curbside delivery conducted pursuant to section 15404.
(b) Alcoholic beverages shall not be stored or consumed on a licensed premises. (c) Any licensed retailer or microbusiness authorized to conduct retail sales that are adjacent to another premises engaging in manufacturing, cultivation, or distribution shall be separated from those premises by solid walls that extend from floor to ceiling, and any doors leading to the cultivation, distribution, or manufacturing premises shall remain closed.

Observation: N/A
§15037 GENERAL RECORD RETENTION REQUIREMENTS Compliant
(a) Licensees must keep and maintain records in connection with the licensed commercial cannabis business.

Records must be kept for at least seven years from the date of creation unless a shorter time is specified. (b) Records must be kept in a manner that allows the records to be produced for the Department in either hard copy or electronic form.
(c) Records must be legible and accurate. No person may intentionally misrepresent or falsify records. (d) Records must be stored in a secured area where the records are protected from debris, moisture, contamination, hazardous waste, and theft.

Observation: N/A

§15039 LICENSE POSTING REQUIREMENT Compliant
(a) Upon issuance of the license, the licensee shall prominently display the license on the licensed premises where it can be viewed by state and local agencies. If the licensed premises is open to the public, the license shall be displayed in an area that is within plain sight of the public. (b) Upon issuance of any license, a retailer, whose licensed premises is open to the public, shall prominently display the Quick Response Code (QR Code) certificate issued by the Department so that it can be viewed and scanned from outside of the licensed premises.
(c) The QR Code certificate displayed by a licensee, as required by subsection (b), shall be posted in the front window of the licensed premises within three (3) feet of any public entrance to the licensed premises, or in a locked display case mounted on the outside wall of the licensed premises within three (3) feet of any public entrance to the licensed premises. The QR Code certificate shall be posted in a manner that is visible from the outside of the licensed premises to the public and all persons entering the premises.

Observation: N/A
§15042 PREMISES ACCESS REQUIREMENTS Non-Compliant
(a) For a premises that is not open to the public, the licensee shall establish and implement an identification and sign-in/sign-out procedure for all persons accessing the premises, including authorized individuals, suppliers, and visitors.
(b) Licensees shall ensure that only employees of the licensee and other authorized individuals access the licensed premises.
(c) For the purpose of this section, “authorized individuals” include outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises. (d) An individual who enters the licensed premises and is not employed by the licensee shall be escorted by an employee of the licensee at all times while within the licensed premises. (e) A licensee shall maintain a record of all authorized individuals who are not employees of the licensee who enter the licensed premises. The record shall include the name of the individual, the company the individual works for, the reason the individual entered the licensed premises, the date, and the times the individual entered and exited the licensed premises. These records shall be made available to the Department immediately upon request.

Observation:
• The Licensee did not have a sign-in/sign-out procedure implemented, or a Visitor Log used for identifying and recording authorized individuals accessing the licensed premises pursuant to subsection (e).
§15043 LICENSEE EMPLOYEE BADGE REQUIREMENT Compliant
All agents, officers, or other persons acting for or employed by a licensee conducting retail sales or participating in a temporary cannabis event shall display a laminated or plastic-coated identification badge issued by the licensee at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the licensee's “doing business as” name and license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height.

Observation:
• At the time of the inspection, employees were not issued employee identification badges. Prior to the writing of this report, the Licensee has issued ID badges as prescribed by regulation. §15044 VIDEO SURVEILLANCE SYSTEM Non-Compliant
(a) Each licensed premises shall have a digital video surveillance system with a minimum camera resolution of 1280 × 720 pixels on the licensed premises. This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises.
(b) The video surveillance system shall at all times be able to record images of the area effectively and clearly under surveillance.
(c) Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the licensed premises and allows for the clear and certain identification of any person and

activities in all areas required to be filmed under subsection (d). (d) Areas that shall be recorded on the video surveillance system include the following:
(1) Areas where cannabis or cannabis products are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the licensed premises; (2) Limited-access areas;
(3) Security rooms;
(4) Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and
(5) Entrances and exits to the licensed premises, shall be recorded from both indoor and outdoor vantage points.
(e) Licensed retailers and licensed microbusinesses authorized to engage in retail sales shall also record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. Camera placement must allow for the recording of facial features. (f) Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS). (g) The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering or theft. (h) Surveillance recordings shall be kept for a minimum of 90 calendar days. (i) Surveillance recordings are subject to inspection by the Department to view and obtain copies of the recordings at the licensed premises immediately upon request. (j) Recorded images shall clearly and accurately display the time and date. (k) The video surveillance system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the video surveillance system or video surveillance-system storage device.
(l) All licensees sharing a video surveillance system shall be held responsible and subject to discipline for any violations of the video surveillance requirements.
(m)A licensed distributor transport only licensee engaged in self-distribution whose premises is on the same parcel of land as their licensed cultivation premises shall not be required to comply with the provisions of this section.

Observation:
• There were areas on the licensed premises lacking camera coverage pursuant to subsection (d), including all limited-access areas, corridors, hallways between licensed premises, and the room where the video surveillance system is stored.
• Employees of the Licensee were unable to show proof of 90 days’ video recording pursuant to subsections (h) and (i). The employees on site did not have the login/password information to access the video recording system.
§15046 LOCKS Compliant
A licensee shall ensure that all limited-access areas can be securely locked using commercial-grade, nonresidential door locks. A licensee shall also use commercial-grade, nonresidential door locks on all points of entry and exit to the licensed premises. This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises.

Observation: N/A
§15047 ALARM SYSTEM Compliant
(a) A licensee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(c) at the licensed premises. This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises. (b) A licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system. (c) Upon request, a licensee shall make available to the Department all information related to the alarm system, monitoring, and alarm activity.

Observation: N/A
§15048.5 USE OF HARVEST BATCH NAME AND PACKAGE TAGS Compliant (a) The assigned harvest batch name shall match what is in the track and trace system and the harvest batch name next to the batch shall be the same.
(b) Each harvest batch and manufactured cannabis batch shall be assigned a package tag and recorded in the track and trace system. The package tag shall be assigned and recorded in the track and trace

system no later than the time at which any part of that harvest batch has finished undergoing any applicable drying, curing, grading, and trimming.
(c) For all cannabis and cannabis products held in a container, the package tag shall be affixed to the container holding the cannabis or cannabis products. If cannabis or cannabis products are held in multiple containers, the package tag shall be affixed to one of the containers and the other containers shall be labeled with the applicable UID number. Each unit within the container shall be labeled with the applicable UID number. All containers with the same UID number shall be placed contiguous to one another to facilitate identification by the Department.

Observation: N/A
§15049 TRACK AND TRACE REPORTING Compliant
(a) All cannabis and cannabis products on the licensed premises shall be assigned a plant or package tag, except for harvested plants that are being dried, cured, graded, or trimmed, as specified in this division, and recorded in the track and trace system.
(b) Each of the following activities shall be recorded in the track and trace system within 24 hours of occurrence.
(1) Receipt of cannabis or cannabis products.
(2) Rejection of transferred cannabis or cannabis products. (3) Manufacturing of cannabis or cannabis products.
(4) Use of cannabis or cannabis product for internal quality control testing or product research and development.
(5) Destruction or disposal of cannabis or cannabis products. (6) Packaging or repackaging of cannabis or cannabis products, except that cultivation licensees shall comply with section 15049.1(b)(5).
(7) Laboratory testing, including testing results.
(8) Sale or donation of cannabis or cannabis products.
(e) If a licensee rejects a partial shipment of cannabis goods pursuant to section 15052.1(b), the licensee shall record the partial rejection in the track and trace system.

Observation: N/A
§15049.2 RECORDING TRANSFERS OF CANNABIS AND CANNABIS PRODUCTS Compliant (a) A licensee shall prepare a shipping manifest through the track and trace system prior to transferring cannabis and cannabis products off of a licensed premises. (b) The distributor who transports the cannabis or cannabis product shall record the following additional information on the shipping manifest: (1) The actual date and time of departure from the licensed premises; and (2) The actual date and time of arrival at each licensed premises. (c) Upon pick-up or receipt of cannabis and cannabis products for transport, storage, or inventory, a licensee shall ensure that the cannabis or cannabis products received are as described in the shipping manifest.

The licensee shall record acceptance or receipt, and acknowledgment of the cannabis or cannabis products in the track and trace system.
(d) If there are any discrepancies between the type or quantity of cannabis or cannabis products specified in the shipping manifest and the type or quantity received by the licensee, the licensee shall reject the shipment.

Observation: N/A
§15051 TRACK AND TRACE SYSTEM RECONCILIATION Not Observed (a) The license shall review the information recorded in the track and trace system at least once every 30 calendar days to ensure its accuracy, including, at a minimum:
(1) Reconciling on-hand inventory of cannabis and cannabis products with the records in the track and trace system; and
(2) Reviewing the licensee’s authorized users and removing any users who are no longer authorized to enter information into the track and trace system.
(b) If a licensee finds a discrepancy between the on-hand inventory and the track and trace system, the licensee shall conduct an audit and notify the Department in writing if the discrepancy is significant as defined in section 15034.

Observation: N/A
§15300 DISTRIBUTION ACTIVITIES Compliant
A licensed distributor shall distribute only cannabis and cannabis products, cannabis accessories, and

licensees’ branded merchandise or promotional materials.

Observation: N/A
§15303 PACKAGING, LABELING, AND ROLLING Compliant
(a) A licensed distributor may package, repackage, label, and relabel cannabis in the form of dried flower, including pre-rolls, for retail sale. All packages of cannabis in the form of dried flower, including prerolls, shall comply with the requirements in chapter 11. (b) A licensed distributor shall not process cannabis, but may roll pre-rolls that consist exclusively of any combination of flower, shake leaf, or kief. Pre-rolls shall be rolled, packaged, and labeled prior to regulatory compliance testing.
(c) Licensed distributors may label and relabel a package containing manufactured cannabis or cannabis products with the amount of cannabinoids and terpenoids based on regulatory compliance testing results.

Observation: N/A
§15304 TESTING ARRANGEMENTS Compliant
After taking physical possession of a batch of cannabis or cannabis products, the licensed distributor shall contact a licensed testing laboratory and arrange for a laboratory employee to come to the licensed distributor's licensed premises to select a representative sample for laboratory testing.

Observation: N/A
§15308 INSURANCE REQUIREMENTS Non-Compliant
(a) A distributor licensee shall at all times carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss.

Observation:
• The Licensee was unable to show proof of insurance pursuant to subsection (a). The document was stored electronically by the Licensee and employees were not able to produce it as requested. §15309 INVENTORY ACCOUNTING Compliant
(a) A licensed distributor shall be able to account for all inventory and provide that information to the Department upon request.
(b) To account for inventory, a licensed distributor shall ensure all batches of cannabis or cannabis products are stored in accordance with section 15302 and shall be able to provide the Department with the status of the batch as follows:
(1) The batch is being held in storage for another licensee; (2) The batch is awaiting sampling for regulatory compliance testing; (3) The batch has been sampled and is awaiting regulatory compliance testing results; (4) The batch has passed regulatory compliance testing; (5) The batch has failed regulatory compliance testing and is awaiting approval for remediation; (6) The batch has failed regulatory compliance testing and is awaiting destruction; and (7) The batch is being stored or held for any other lawful purpose under the Act or this division.

Observation: N/A
§15314 SHIPPING MANIFEST Compliant
(a) Prior to transporting cannabis or cannabis products, a licensed distributor shall generate a shipping manifest through the track and trace system for the following activities:
(1) Regulatory compliance testing and sampling;
(2) Sale of cannabis or cannabis products to a licensee; (3) Destruction or disposal of cannabis or cannabis products; and (4) Any other activity, as required pursuant to this division, or by the Department. (b) The licensed distributor shall transmit the shipping manifest to the Department and the licensee that will receive the cannabis or cannabis products prior to transporting the cannabis or cannabis products. (c) The licensed distributor shall ensure and verify that the cannabis or cannabis products being taken into possession for transport at the originating licensed premises are as described and accurately reflected in the shipping manifest.
(1) The licensed distributor shall not take into possession or transport:
(A) Any cannabis or cannabis products that are not on the shipping manifest; or

(B) Any cannabis or cannabis products that are less than or greater than the amount reflected on the shipping manifest.
(2) The licensed distributor is responsible for any discrepancies between the shipping manifest and the cannabis or cannabis products in its possession during transport and subject to any enforcement or disciplinary action related to such discrepancy.
(3) A licensed distributor shall not void or change a shipping manifest after departing from the originating licensed premises.
(d) A shipping manifest shall accompany every transport of cannabis or cannabis products.

Observation: N/A
§15403 HOURS OF OPERATION Compliant
A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.

Observation: N/A
§15403.1 REQUIREMENTS WHILE NOT OPEN FOR BUSINESS Compliant At any time, the licensed premises is not open for retail sales, a licensed retailer shall ensure that:
(a) The licensed premises is securely locked with commercial-grade, nonresidential door locks as required in section 15046 of this division;
(b) The licensed premises is equipped with an active alarm system pursuant to section 15047 of this division, which shall be activated when the licensed retailer or its employees are not on the licensed premises; and
(c) Only employees of the licensee and other authorized individuals are allowed access to the licensed premises. Authorized individuals include individuals employed by the licensee as well as any outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises.

Observation: N/A
§15406 CANNABIS GOODS FOR SALE Compliant
A licensed retailer shall not make any cannabis goods available for sale or delivery to a customer unless:
(a) The cannabis goods were received by the licensed retailer from a licensed distributor or licensed microbusiness authorized to engage in distribution;
(b) The licensed retailer has verified that the cannabis goods have not exceeded their best-by, sell-by, or expiration date if one is provided;
(c) In the case of manufactured cannabis products, the product complies with all requirements of the Business and Professions Code section 26130;
(d) The cannabis goods have undergone regulatory compliance testing as required by the Act and chapter 6;
(e) The batch number, if any, is labeled on the package of cannabis goods and matches the batch number on the corresponding certificate of analysis for regulatory compliance testing; (f) The packaging and labeling of the cannabis goods complies with Business and Professions Code section 26120 and this division; and
(g) The cannabis goods comply with all applicable requirements found in the Act and this division.

Observation: N/A
§15412 PROHIBITION ON PACKAGING AND LABELING BY A RETAILER Compliant (a) A licensed retailer shall not accept, possess, or sell cannabis goods that are not packaged as they will be sold at final sale, in compliance with this division. (b) A licensed retailer shall not package or label cannabis goods. (c) A licensed retailer may place a barcode or similar sticker on the packaging of cannabis goods to be used in inventory tracking. A barcode or similar sticker placed on the packaging of cannabis goods shall not obscure any labels required by the Act or this division.

Observation: N/A
§15413 CANNABIS GOODS PACKAGING AND EXIT PACKAGING Compliant (a) All cannabis goods sold by a licensed retailer shall be in compliance with the packaging requirements in chapter 11.
(b) A package containing cannabis goods shall be tamper-evident and child-resistant. If the package contains multiple servings, the package must also be resealable.

(c) All cannabis goods purchased by a customer shall not leave the licensed retailer’s premises unless the goods are placed in an opaque exit package.
(d) Immature plants and seeds sold by a licensed retailer are not required to be placed in resealable, tamperevident, child-resistant packaging.

Observation: N/A
§15414 NON-STOREFRONT RETAILER Compliant
(a) A non-storefront retailer licensee shall be authorized to conduct retail sales exclusively by delivery as defined in Business and Professions Code section 26001(o). (b) A complete application for a non-storefront retailer license shall include all the information required in an application for a retailer license.
(c) A non-storefront retailer licensee shall comply with all the requirements applicable to retailer licensees, except for those provisions related to public access to the licensed premises and the retail area. (d) The licensed premises of a non-storefront retailer licensee shall be closed to the public.

Observation: N/A
§15415 DELIVERY EMPLOYEES Compliant
(a) All deliveries of cannabis goods shall be performed by a delivery employee who is directly employed by a licensed retailer.
(b) Each delivery employee of a licensed retailer shall be at least 21 years of age. (c) All deliveries of cannabis goods shall be made in person. Delivery of cannabis goods shall not be made through the use of an unstaffed vehicle.
(d) Deliveries of cannabis goods shall be received by customers only during the hours of operation established by section 15403. Delivery employees shall return to the licensed premises after making their last delivery of the day if they have any unsold cannabis goods to return to the premises. (e) During the process of delivery, the licensed retailer’s delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops. (f) A delivery employee shall provide a copy of the retail license, a copy of the QR Code Certificate, and their employee identification badge to a delivery customer upon request. (g) Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm the identity and age of the delivery customer as required by section 15404 and ensure that all cannabis goods sold comply with requirements of section 15413.
(h) A licensed retailer shall maintain an accurate list of the retailer’s delivery employees and shall provide the list to the Department upon request.

Observation: N/A
§15422 RECEIVING SHIPMENTS OF INVENTORY Compliant
(a) A licensed retailer shall receive a shipment of cannabis goods only from a licensed distributor or licensed microbusiness authorized to engage in distribution.
(b) A licensed retailer shall accept shipments of cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.
(c) During business hours, shipments of cannabis goods shall not enter the licensed premises through an entrance or exit that is available for use by the public. (d) A licensed retailer whose licensed premises only have one entryway may be exempt from the requirements of subsection (c) of this section if the licensed retailer obtains authorization from the local jurisdiction explicitly authorizing this activity. The licensed retailer shall be required to provide this authorization to the Department upon request. For this section to apply, the licensed premises must physically have only one entryway and cannot have any other entryways.

Observation: N/A
§15423 INVENTORY DOCUMENTATION Compliant
A licensed retailer shall maintain an accurate record of its inventory. A licensed retailer shall provide the Department with the record of inventory immediately upon request. A licensed retailer shall keep a record of the following information for all cannabis goods the licensed retailer has in its inventory:
(a) A description of each item such that the cannabis goods can easily be identified; (b) An accurate measurement of the quantity of the item; (c) The date and time the cannabis goods were received by the licensed retailer; (d) The sell-by or expiration date provided on the package of cannabis goods if any; (e) The name and license number of the licensed distributor or licensed microbusiness that transported the

cannabis goods to the licensed retailer; and
(f) The price the licensed retailer paid for the cannabis goods, including taxes, delivery costs, and any other costs.

Observation: N/A
§15424 INVENTORY RECONCILIATION Compliant
(a) A licensed retailer shall be able to account for all of its inventory. (b) In conducting an inventory reconciliation, a licensed retailer shall verify that the licensed retailer's physical inventory is consistent with the licensed retailer's records pertaining to inventory. (c) The result of inventory reconciliation shall be retained in the licensed retailer's records and shall be made available to the Department upon request.
(d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed retailer shall notify the Department and law enforcement pursuant to section 15036 of this division. (e) If a significant discrepancy as defined in section 15034 of this division is discovered between a licensed retailer's physical inventory and the licensed retailer's inventory records, the licensed retailer shall notify the Department and law enforcement pursuant to section 15036 of this division.

Observation: N/A
§ 15500 MICROBUSINESS Compliant
(a) In order to hold a microbusiness license, a licensee must engage in at least three (3) of the following commercial cannabis activities: cultivation, manufacturing, distribution, and retail sale. License types created by the Department in regulation shall not be considered qualifying commercial cannabis activities for purposes of obtaining a microbusiness license, except for the Type N manufacturing license and the distributor transport only license.
(b) An applicant for a microbusiness license shall indicate on the application for licensure all commercial cannabis activities in which the applicant intends to engage. (c) All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a microbusiness license shall occur on the same licensed premises. (d) A holder of a microbusiness license engaged in cultivation shall comply with all the rules and requirements applicable to the cultivation license type suitable for the cultivation activities of the licensee.
(e) A holder of a microbusiness license engaged in manufacturing shall comply with all the rules and requirements applicable to a Manufacturer 1 license in this division. (f) A holder of a microbusiness license engaged in distribution shall comply with all the rules and requirements applicable to a distributor license in this division. (g) A holder of a microbusiness license engaged in retail sale shall comply with all the rules and requirements applicable to a retailer license, or a non-storefront retailer license if retail sales are conducted by delivery only, in this division.
(h) A holder of a microbusiness license may only engage in the commercial cannabis activity requested in the license application and approved by the Department at the time the license is issued. (i) A holder of a microbusiness license shall comply with all the security rules and requirements applicable to the corresponding license type suitable for the activities of the licensee. (j) Areas of the licensed premises for manufacturing, cultivation, and distribution shall be separated from the retail areas by a wall and all doors between the areas shall remain closed when not in use. (k) A suspension or revocation of a microbusiness licensee shall affect all commercial cannabis activities allowed pursuant to that license.

Observation: N/A
§16202 GENERAL CULTIVATION REQUIREMENTS Compliant
(a) Licensees are prohibited from transferring any commercially cultivated cannabis or nonmanufactured cannabis products from their licensed premises. All transfers of cannabis and nonmanufactured cannabis product from a licensed cultivation premises must be conducted by a distributor licensed by the Department.
(b) Artificial lighting is permissible only to maintain immature plants outside the canopy area.

Observation: N/A
§16300 CULTIVATION REQUIREMENTS Compliant
(a) Cannabis plants maintained outside of the designated canopy area(s) for specialty cottage, specialty, small, and medium licenses are prohibited from flowering. Should a plant outside of the canopy area(s)

begin flowering, a plant tag shall be applied, and the plant shall be moved to a designated canopy area and reported in the track and trace system without delay. (b) All plants or portions of a plant used for seed production shall be tagged with a plant tag pursuant to section 15048.4.
(c) A licensee propagating immature plants for distribution or seed for distribution to another licensee shall obtain a nursery license.
(d) Licensees shall process their harvested cannabis only in the area(s) designated for processing in their cultivation plan or transfer their harvested cannabis to a licensed processor, manufacturer, or distributor via a licensed distributor.

Observation: N/A
§16307 PESTICIDE USE REQUIREMENTS Compliant
(a) Licensed cultivators shall comply with all applicable pesticide statutes and regulations enforced by the Department of Pesticide Regulation.
(b) For all pesticides that are exempt from registration requirements, licensed cultivators shall comply with all applicable pesticide statutes and regulations enforced by the Department of Pesticide Regulation and pesticide application and storage protocols.

Observation: N/A
§16308 CANOPY REQUIREMENTS Compliant
(a) Licensed cultivators shall comply with the following requirements for canopy areas:
(1) Each canopy shall be marked with clearly identifiable physical boundaries around all areas that will contain mature plants. Physical boundaries include, but are not limited to, interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, garden plots, or stakes delineating the perimeter.
(2) Each canopy shall be of sufficient size to contain the mature plants in their entirety at any point in time. No portion of the plant is permitted to hang over an established canopy boundary. (b) Seeds, immature plants, or propagated material received from a licensed nursery as trade samples shall be cultivated in a canopy area dedicated to trade samples that meets the requirements of subsection (a). Canopy areas used to cultivate trade samples received from a licensed nursery shall be included in the licensed cultivator’s cultivation plan and shall be included in the aggregate square footage of the canopy areas.
(c) Licensed cultivators may utilize canopy areas to produce seeds for their own use.

Observation: N/A
§16309 CULTIVATION PLAN Compliant
(a) Licensed cultivators shall establish and maintain a cultivation plan that includes all of the following:
(1) A premises diagram drafted in accordance with section 15006. (2) A cannabis waste management plan developed in accordance with section 17223. (3) A pest management plan developed in accordance with section 16310.

Observation: N/A
§16310 PEST MANAGEMENT PLAN Compliant
(a) The licensed cultivator shall develop a pest management plan that includes:
(1) The product name and active ingredient(s) of all pesticides to be applied to cannabis; and (2) Any integrated pest management protocols, including chemical, biological, and cultural methods, that will be used to prevent and control pests on the cultivation site.

Observation: N/A
§17203 PERMISSIBLE EXTRACTIONS Compliant
(b) To request authorization from the Department to conduct cannabis extraction using a method other than those specified in subsections (a)(1) through (4), the applicant or licensee shall submit a detailed description of the extraction method, including any documentation that validates the method and any safety procedures to be utilized to mitigate any risk to public or worker health and safety.

Observation: N/A
§17204 SOLVENT REQUIREMENTS Compliant
(b) The licensed manufacturer shall maintain copies of the safety data sheets for any chemical solvents used and make these records readily available to employees and the Department upon request.

(c) The licensed manufacturer shall maintain documentation evidencing the purity of any chemical solvents used and make these records readily available to employees and the Department upon request.

Observation: N/A
§17206 CLOSED-LOOP EXTRACTION SYSTEM REQUIREMENTS Not Observed (a) Chemical extractions using CO2; a volatile solvent; or chlorofluorocarbon, hydrocarbon, or other fluorinated gas shall be conducted in a professional closed-loop extraction system designed to recover the solvents that are certified in accordance with section 17206.1. (b) The licensed manufacturer shall establish and implement procedures to ensure that the closed-loop extraction system is maintained in accordance with the equipment manufacturer's specifications. The licensed manufacturer shall maintain logs documenting the date(s) of maintenance; a description of the maintenance done, including any mechanical parts that were replaced; and the initials of the employee conducting the maintenance.
(c) The licensed manufacturer shall establish and implement procedures to ensure routine verification that the system is operating in accordance with equipment manufacturer specifications and continues to comply with fire, safety, and building code requirements. (d) A licensed manufacturer shall develop and implement written standard operating procedures, good manufacturing practices, and a training plan prior to using the closed-loop system.

Observation:
• No extraction equipment was installed or operational at the time of the inspection. §17209 GROUNDS, BUILDING, AND MANUFACTURING PREMISES Compliant (a) Exterior facility and grounds. A licensed manufacturer shall ensure the facility exterior and grounds under the licensed manufacturer’s control meet the following minimum standards:
(4) Openings into the building (such as windows, exhaust fans, ventilation ducts, or plumbing vent pipes) shall be screened, sealed, or otherwise protected to minimize the potential for pests to enter the building;
(5) Waste treatment and disposal systems shall be provided and maintained so as to prevent contamination in areas where cannabis products may be exposed to such a system’s waste or waste by-products.
(b) Interior facility. A licensed manufacturer shall ensure the construction, design, and maintenance of the interior of the manufacturing premises as follows:
(1) Walls, ceilings, and floors. Walls, ceilings, and floors shall be constructed of a material that is smooth, nonporous, easily cleanable, corrosion-resistant, and suitable to the activity that will be conducted.

Fixtures, ducts, and pipes shall not pose a source of drip or condensate that may contaminate cannabis, cannabis products, components, contact surfaces, or packaging material. (F) Waste disposal. A licensed manufacturer shall provide for waste disposal in accordance with Health and Safety Code sections 114244(a) and (c) and 114245.1. Cannabis waste shall be disposed of in accordance with section 17223.
(C) Poisonous or toxic materials such as cleaning compounds, sanitizing agents, and pesticide chemicals that are necessary for premises and equipment maintenance and operation shall be handled and stored in a manner that meets the requirements of Health and Safety Code sections 114254.1, 114254.2 and 114254.3.

Observation: N/A
§17210 EQUIPMENT AND UTENSILS Compliant
(c) Cleaning, sanitizing, and maintenance. Equipment and utensils shall be maintained in a clean and sanitary condition and kept in good repair. The quality control program for cleaning, sanitizing, and maintenance of equipment and utensils shall include the following elements, at a minimum:
(1) A detailed, written procedure for cleaning, sanitizing, and maintaining (including calibrating) equipment and utensils;
(2) A schedule for cleaning, sanitizing, and maintaining equipment and utensils; (3) A log for documentation of the date and time of maintenance, cleaning, and sanitizing of equipment and utensils; and
(4) A procedure for storing cleaned and sanitized equipment and utensils in a manner to protect the equipment and utensils from contamination.

Observation: N/A

§17215 MASTER MANUFACTURING PROTOCOL Compliant
(a) A licensed manufacturer shall establish and follow a written master manufacturing protocol for each unique formulation of cannabis product manufactured, and for each batch size, in order to mitigate the potential for adulteration through the incorporation of incorrect amounts of cannabinoids, unintended ingredients, or hazards identified in the product quality plan; the potential for misbranding through the incorporation of ingredients not identified on the label or mislabeling of the product; and to ensure uniformity in finished batches and across all batches produced.

Observation: N/A
§17217 STANDARD OPERATING PROCEDURES Non-Compliant
(a) A licensed manufacturer shall establish and maintain written standard operating procedures that are easily accessible to onsite personnel. The standard operating procedures shall, at minimum, include the following:
(1) Policies or procedures developed in accordance with the security plan required by section 15042.1; (2) Emergency response procedures, including safety data sheets for any chemicals on site; (3) Policies and procedures developed in accordance with section 17206; (4) Policies and procedures developed in accordance with this article; (5) Procedures for complying with the track and trace requirements established in article 6 of chapter 1; and
(6) Cannabis waste management procedures in compliance with section 17223. (b) Procedures shall be written in English but may be made available in other languages, as necessary for the licensee's personnel.

Observation:
• Written standard operating procedures (“SOPs”) are stored electronically and were not easily accessible to onsite personnel pursuant to subsection (a). §17218 INVENTORY CONTROL Compliant
(a) A licensed manufacturer shall establish and implement a written inventory control plan capable of tracking the location and disposition of all cannabis and cannabis products at the licensed premises. (b) A licensed manufacturer shall reconcile the on-hand inventory of cannabis and cannabis products at the licensed premises with the records in the track and trace system at least once every thirty (30) calendar days.
(c) If a licensed manufacturer finds a discrepancy between the on-hand inventory and the track and trace system, the licensee shall conduct an audit.
(d) If the inventory reconciliation conducted pursuant to subsection (b) or the audit conducted pursuant to subsection (c) reveals a discrepancy that is significant pursuant to section 15034, the licensed manufacturer shall notify the Department within 24 hours of the discovery. The result of inventory reconciliation and any audit shall be retained in the licensed manufacturer’s records and shall be made available to the Department upon request.
(e) The licensed manufacturer shall maintain sales invoices and receipts for all batches of cannabis and cannabis products received at and transferred from its licensed premises. The licensed manufacturer shall prepare a sales invoice or receipt that meets the requirements of Business and Professions Code section 26161 prior to each sale or transport of cannabis products from the premises.

Observation: N/A
§17221 WEIGHING DEVICES AND WEIGHMASTERS Compliant
(a) A licensee shall use weighing devices approved, tested, and sealed in accordance with the requirements in the Business and Professions Code, division 5, chapter 5 (commencing with section 12500) and its implementing regulations, and registered with the county sealer consistent with Business and Professions Code, division 5, chapter 2 (commencing with section 12240).

Observation: N/A
§17223 WASTE MANAGEMENT Compliant
(a) A licensee shall dispose of all waste in accordance with the Public Resources Code and any other applicable state and local laws. It is the responsibility of the licensee to properly evaluate waste to determine if it should be designated and handled as hazardous waste, as defined in Public Resources Code section 40141.
(b) A licensee shall establish and implement a written cannabis waste management plan that describes the method or methods by which the licensee will dispose of cannabis waste, as applicable to the licensee’s

activities.

Observation: N/A
§17401 RELEASE TO DISTRIBUTOR AS FINISHED PRODUCT Compliant (a) Cannabis products shall not be transferred to a licensed distributor, or microbusiness authorized to engage in distribution, for regulatory compliance testing unless the cannabis products are in their final form and packaged and labeled for retail sale.
(b) Notwithstanding subsection (a), a product label may exclude labeling of cannabinoid content if the cannabinoid content is to be added to the label at the distribution premises after issuance of a Certificate of Analysis in accordance with section 17407.

Observation: N/A
§17402 GENERAL PROVISIONS Compliant
(a) Any information required to be listed on a label shall be written in English. (b) A label shall be unobstructed and conspicuous so that it can be read by the consumer. (c) All required label information shall be located on the outside container or wrapper of the finished product to be sold at a retailer or be easily legible through the outermost container or wrapper. If the immediate container holding the cannabis goods is separable from the outermost packaging, such as a container placed inside of a box, the immediate container shall be labeled with the universal symbol as described in section 17410.

Observation: N/A
§17403 LABELING REQUIRMENTS: NONMANUFACTURED CANNABIS GOODS Compliant (a) The label for a package of nonmanufactured cannabis goods shall include a primary panel that includes the following information in a type size no smaller than 6 point and proportional to the size of the primary panel and container:
(1) The identity of the product;
(2) The net weight of cannabis in the package, listed in both metric and U.S. customary units; and (3) The universal symbol is described in section 17410. (b) The label for a package of nonmanufactured cannabis goods shall include an informational label that includes the following information in a type size no smaller than 6 point and proportional to the size of the informational panel and container:
(1) The UID;
(2) The name of the licensed cultivator or licensee packaging the product (either the legal business name or the one listed on the license certificate) and that licensee's contact number or website address;
(3) The date of packaging for retail sale; and
(4) The following statement in bold print: “GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (c) Nothing in this section prohibits the inclusion of additional information on the primary panel, provided that the label does not violate the requirements of section 17408. (d) The cannabinoid content for a package of nonmanufactured cannabis goods shall be labeled as specified in section 17407.

Observation: N/A
§17406 INFORMATIONAL PANEL LABELING REQUIREMENTS Compliant The label for a manufactured cannabis product shall include an informational panel that includes the following:
1) The name of the licensed manufacturer and its contact number or website address; 2) The date of the cannabis product’s manufacture and packaging; 3) The “GOVERNMENT WARNING” statement in bold print;
4) The statement “FOR MEDICAL USE ONLY,”;
5) A list of all product ingredients in descending order of predominance by weight or volume; 6) If the cannabis product contains an ingredient, flavoring, coloring, or an incidental additive that bears or contains a major food allergen, the word “contains,” followed by a list of the applicable

major food allergens;
7) The names of any artificial colorings contained in the product; 8) If an edible cannabis product, the amount, in grams or milligrams, of sodium, sugar, carbohydrates, and total fat per serving;
9) Instructions for use, such as the method of consumption or application, and any preparation necessary prior to use;
10)The UID and the batch or lot number;
11)The batch or lot number; and
12) If the cannabis product is perishable or is perishable after opening, the statement, “KEEP REFRIGERATED” or “REFRIGERATE AFTER OPENING,” as applicable.

Observation: N/A
§17410 UNIVERSAL SYMBOL Compliant
(a) The symbol established pursuant to Business and Professions Code section 26130 shall replicate the following in form:
(b) The symbol shall be black or white in color. The symbol shall be made conspicuous by printing the symbol in a contrasting color.
(c) The symbol shall be no smaller in height than one-half (0.5) inch except as allowed under subsection (d).
(d) A cannabis vape cartridge or integrated cannabis vaporizer shall bear a universal symbol in a size no smaller than one-quarter (0.25) inch wide by one-quarter (0.25) inch high that is engraved, printed, or affixed with a sticker.
(e) The symbol shall not be altered or cropped in any way other than to adjust the sizing for placement on the primary panel.

Observation: N/A
§17411 PACKAGING Compliant
(a) A package used to contain a cannabis good shall comply with the following requirements:
(1) The package shall protect the cannabis goods from contamination and shall not expose the goods to any toxic or harmful substance.
(2) The package shall be tamper-evident, which means that the packaging is sealed so that the contents cannot be accessed without obvious destruction of the seal upon initial opening. (3) If the cannabis good has more than one serving, the package shall be resealable. (4) The package shall not imitate any package used for products typically marketed to children. (5) If the cannabis good is an edible product, the package shall be opaque. (6) Notwithstanding subsection (a)(5), cannabis beverages may be packaged in clear glass containers or any color.
(7) The package shall be child-resistant, as described in section 17412.

Observation: N/A

ORDINANCE
5-45.02(a) LICENSE REQUIRED Compliant
(a) No person shall engage in commercial cannabis activity within the City of Maywood without a valid license issued under this chapter and a valid conditional use permit (“CUP”) issued under the Maywood Municipal Code Zoning Ordinance. Any activity authorized under such a license shall additionally comply with all provisions of this chapter and state law at all times.

Observation: N/A
5-46.07 OPERATION AND NOTIFICATION REQUIREMENTS Non-Compliant (a) It shall be unlawful for any person with a license to operate any commercial cannabis activity to violate any of the following rules and regulations:
(1) All licensees shall comply with state law at all times; (2) All licensees shall maintain a record system that provides adequate tracking capability, including, but not limited to, a point of sale and a track-and-trace system. (3) All licensees shall pay any applicable sales tax or other tax obligations under share or local law; (4) All products shall be secured in a safe and lawful manner, including the use of commercial-grade locks, security alarms, and camera systems;

Observation:
• Inspectors observed state regulatory violations by the Licensee pursuant to subsection (a)(1). This violation coincides with the following regulations:
o §15006 Premises Diagram – Employees were unable to provide an electronic or hard copy of the Premises Diagram.
o §15042 Premises Access Requirements – The Licensee did not have a Visitor Log. o §15044 Video Surveillance System – Areas on the licensed premises were lacking camera coverage; Employees of the Licensee were unable to show proof of 90 days’ video recording. o §15308 Insurance Coverage – The Licensee was unable to show proof of insurance. o §17217 Standard Operating Procedures – Written standard operating procedures (“SOPs”) were not easily accessible.
5-46.08 INSPECTIONS Compliant
The Building Official or designated officials shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the commercial cannabis business is being operated or maintained in compliance with this Code, State law, and other applicable laws and regulations. Failure to comply shall result in commercial cannabis license revocation.

Observation: N/A
5-46.14 MAINTENANCE OF RECORDS Non-Compliant
(a) A licensee shall maintain all the records required for retention by Section 5037 of Title 16 of the California Code of Regulations, as the same may be amended from time to time, for a period of at least seven (7) years.
(b) Records shall be kept in a manner that allows the records to be produced to the City at the premises in either hard copy or electronic form, whichever the City requires. (c) A licensee shall report any loss, damage, or destruction of these records to the City Manager within twenty-four (24) hours of the loss, damage, or destruction.

Observation:
• Records were not kept in a manner pursuant to subsection (b). This violation coincides with the following regulations:
o §15006 Premises Diagram – Employees were unable to produce a detailed Premises Diagram. o §15042 Premises Access Requirements – Employees were unable to produce a Visitor Log. o §17217 Standard Operating Procedures – Employees were unable to produce written SOP’s. 5-46.15 SITE MANAGEMENT Compliant
(a) A licensee shall prevent and immediately abate conditions at the premises that constitute a nuisance or other violation of this Code.
(b) The licensee shall maintain the exterior of the premises, including any parking lots and landscaped areas under the control of the licensee, free of litter, debris, trash, and unused equipment. (c) The licensee shall remove all graffiti from the cannabis business site and parking lots under the control of the licensee within twenty-four (24) hours of its application.

Observation: N/A

RECOMMENDATIONS

REGULATORY
§15006 PREMISES DIAGRAM
• Licensee should provide a detailed Premises Diagram to the City meeting all the requirements of this section, including the location of limited-access areas, the correct location of all surveillance cameras, what activities will take place in each space, and disclose where the video recording system will be stored. A response is required for this recommendation.

§15042 PREMISES ACCESS REQUIREMENTS
• Licensee should have a Visitor Log showing an accurate record of all authorized individuals accessing the licensed premises. The record should include the name of the individual, the company the individual works for, the reason the individual entered the licensed premises, the date, and the times the individual entered and exited the licensed premises. A response is required for this recommendation.
§15044 VIDEO SURVEILLANCE SYSTEM
• Licensee should provide proof to the City that the recording system can retain the minimum required 90 days of retention, including a failure notification system, and battery backup in case of power outages. A response is required for this recommendation. • Licensee should install surveillance cameras throughout the facility to effectively record images and commercial cannabis business activities conducted on the licensed premises, including all limitedaccess areas, corridors, hallways between licensed premises, and the room where the video surveillance system is stored. A response is required for this recommendation. §15308 INSURANCE REQUIREMENTS
• Licensee should show proof of commercial general liability insurance coverage in an amount no less than $2,000,000 aggregate and an amount no less than $1,000,000 for each loss. A licensee response is required for this recommendation.
§17217 STANDARD OPERATING PROCEDURES
• Licensee should provide written standard operating procedures (“SOPs”) that are easily accessible to onsite personnel in electronic or hard copy format. A response is required for this recommendation.

ORDINANCE
5-46.07 OPERATION AND NOTIFICATION REQUIREMENTS
• To comply with this provision of the City of Maywood Municipal Code, the Licensee should ensure all observed non-compliant State violations are remediated. A response is required for this recommendation.
5-46.14 MAINTENANCE OF RECORDS
• Licensee should maintain and retain records in a manner that allows all records to be produced in either electronic or hard copy format. A response is required for this recommendation.

NON-REGULATORY
• Licensee should install self-closing, self-latching mechanisms on all interior and exterior doors that lead into licensed premises and limited-access areas.

EXHIBITS NONE