Maywood City Council
February 22, 2023

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contributions (each a “Fee” and collectively the “Fees”) towards the budgeted administrative costs of GCAHT in accordance with a cost allocation formula as outlined below:

POPULATION ANNUAL ADMINISTRATIVE FEE
Up to 30,000 $7,500
30,001 – 60,000 $15,000
60,001 – 100,000 $32,500
>100,000 $47,500
The Fees shall be assessed annually. After the first fiscal year, the Fees shall increase annually in an amount equal to the U.S. Bureau of Labor Statistics consumer price index for all urban consumers in the Los Angeles-Long Beach-Anaheim area for the 12-month period preceding the year the Fees are assessed. Payment of the Fees shall be due within 30 days of receipt of an invoice from the GCAHT. The invoice shall indicate how the Fees were calculated. A Party's contribution to GCAHT's administrative costs shall be in the form of money, unless the Board of Directors approves another form of contribution such as services, personal property or use of real or personal property, or other in-kind contributions. The acceptance and valuation of any such non-monetary contributions may be used to offset in whole or part a Party’s contribution as determined in the sole and absolute discretion of the Board of Directors.

Notwithstanding the above, after the first fiscal year the Board of Directors may establish Fees in an amount the Board of Directors deems financially prudent; provided it shall roughly be proportional as to each Party in the amounts reflected in the table above.

2. Program Cost Contribution. The particular programs and program budget, funded, sponsored or operated by GCAHT, as well as the level of, and mechanisms for, the involvement of GCAHT and each Party, in such programs and program budget, shall be determined and approved by the Board of Directors.
(d) Accounts and Reports.

1. Books and Records. There shall be strict accountability of all GCAHT funds and accounts and report of all GCAHT receipts and disbursements. Without limiting the generality of the foregoing, GCAHT shall establish and maintain such funds and accounts as may be required by good accounting practice. The books and records of GCAHT shall be open to inspection at all reasonable times by each Party and its duly authorized representatives.

2. Annual Audit. The person appointed by the Board of Directors to perform the auditor function for GCAHT shall cause an annual independent audit of the accounts and

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records of GCAHT and records to be made by a certified public accountant or firm of certified public accountants in accordance with Government Code section 6505. Such audits shall be delivered to each Party and shall be made available to the public.

3. Annual Financial Report. Pursuant to section 6539.5 of the Government Code, GCAHT shall publish an Annual Financial Report that shall describe the funds received by GCAHT and the use of such funds by GCAHT. The Annual Financial Report shall describe how the funds received by GCAHT have furthered the purposed of GCAHT. (e) Funds. Subject to the applicable provisions of any instrument or agreement which GCAHT may enter into, which may provide for a trustee or other fiscal agent to receive, have custody of and disburse GCAHT funds, the person appointed by the Board of Directors to perform the treasurer function for GCAHT shall receive, have the custody of and disburse GCAHT funds as nearly as possible in accordance with generally accepted accounting principles, shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement.

Section 8. Amendments and Additional Parties.
(a) This Agreement may not be amended or modified except by a vote of two-thirds of all the Parties through formal action approving such an amendment by the Parties’ respective governing bodies.
(b) No addition to, or alteration of, the terms of this Agreement, whether by written or oral understanding of the parties, their officers, employees or agents, shall be valid or effective unless made in the form of a written amendment which is formally adopted and executed by the Parties in the same manner as this Agreement.

Section 9. Non-Liability for Obligations of GCAHT.
(a) The debts, liabilities, and obligations of GCAHT shall not be the debts, liabilities and obligations of any of the Parties or personal debts, liabilities and obligations or the Directors, officers or employees of GCAHT; provided that a Party may, by an agreement separate from this Agreement, contract for, or assume responsibility for, specific debts, liabilities, or obligations of GCAHT.

1. Indemnification. The GCAHT shall defend, indemnify and hold harmless each Party, its officers, agents, employees, representatives and volunteers (the “Indemnitees”) from and against any loss, injury, claim, lawsuit, liability, expense, or damages of any kind or nature (collectively, “Claims”) brought by a third party which arises out of or in connection with GCAHT’s administration of this Agreement, including such third party claims arising out of or in connection with any Indemnitees acting within their authorized capacity as an officer, agent, employee, representative or volunteer of GCAHT. The GCAHT’s duty to defend and indemnify under this Section shall not extend to Claims otherwise arising out of the Indemnitees’ own active negligence, omissions or willful misconduct, whether in whole or part. The GCAHT shall finance its obligation

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pursuant to this Subsection by establishing a liability reserve fund, and/or by purchasing commercial insurance, and/or by joining a joint powers insurance authority (JPIA) as determined by the Board. In the event the GCAHT’s financial obligations to indemnify, defend and hold harmless, pursuant to this Subsection, exceed the liability reserve fund and/or the proceeds from any applicable insurance and/or JPIA coverage maintained by the GCAHT (hereinafter “Unfunded Liability”), a Party or Parties may meet and confer with GCAHT in good faith to negotiate alternative means or mechanisms by which GCAHT may fund such Unfunded Liability; however, in no event shall the event of an Unfunded Liability relieve, limit or waive GCAHT’s obligations of indemnity or defense to each Party as first set forth above in this Section. Nothing herein shall obligate any Party to indemnify or hold harmless GCAHT for any Unfunded Liability.

2. Assignment. Each Party shall assign to the GCAHT its rights, title, and interest to recover damages from any third party for Claims arising out of this Agreement, to the extent that the GCAHT has met its obligations to defend and indemnify such Party pursuant to this Section.

3. Survival. GCAHT’s duty to defend, indemnify and hold harmless shall survive and continue in full force and effect after withdrawal of any Party from this Agreement, including as to the withdrawing Party, or termination of this Agreement for any reason with respect to any Claims that occurred before the date of such withdrawal or termination.

Section 10. Admission and Withdrawal of Parties.
(a) Admission of New Parties. It is recognized that additional Parties other than the original Parties, may wish to join GCAHT. Any city within the Gateway Cities subregion may become a Party to GCAHT upon such terms and conditions as established by the Board of Directors.

As a condition precedent to becoming a Party more than six months after the Effective Date, an eligible entity may thereafter become a Party to this Agreement; provided that (1) this Agreement is adopted by its governing body and (2) the eligible entity pays a late joining fee. The late joining fee shall be calculated by totaling the annual fee the eligible entity would have paid under this Agreement had it been a Party in all years prior and up until the Effective Date. Notwithstanding the foregoing, an eligible entity’s late joining fee shall not exceed two times the amount of the applicable annual administrative fee existing at the time it becomes a Party. Payment shall be due within 30 days of receipt of an invoice from GCAHT.
(b) Withdrawal from GCAHT. Parties may withdraw from GCAHT at any time upon their governing board’s adoption of a resolution that so states the Party’s intent to withdraw from GCAHT. The withdrawal of any Party, either voluntarily or involuntarily, unless otherwise provided by the Board of Directors, shall be conditioned as follows:

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1. In the case of a voluntary withdrawal, written notice shall be given to GCAHT six months prior to the effective date of withdrawal; and

2. Unless otherwise provided by a unanimous vote of the Board of Directors, withdrawal shall result in the forfeiture of that Party’s rights and claims relating to distribution of property and funds upon termination of GCAHT as set forth in Section 2 above.

Withdrawn members shall not be entitled to any reimbursement of Fees.

Section 11. Notices.
(a) Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the persons and entities listed herein at the following addresses, or to such other address as may be designated to GCAHT on the Parties signature page for formal notice:

Section 12. Miscellaneous.
(a) Section Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing or in any manner affecting the scope, meaning or intent of the provisions or language of this Agreement. (b) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one and the same Agreement.
(c) Laws Governing. This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California.
(d) Severability. Should any part, term, portion or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual it shall be deemed severable, and the reminder of this Agreement or the application thereof to other persons or circumstances shall continue to constitute the Agreement the Parties intended to enter into in the first instance. (e) Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Parties. No Party may assign any right or obligation hereunder without the written consent of a majority of the other Parties.

IN WITNESS THEREOF, the Parties hereto have caused this Agreement to be executed and attested by their duly authorized officers as follows:

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CITY OF MAYWOOD
______________________________
Frank Garcia, Mayor
Dated: ___________________________
ATTEST:
___________________________________________
Andrea Aguilar, City Clerk Date
NOTICE TO CITY TO BE GIVEN TO:

Jennifer E. Vasquez, City Manager
City of Maywood
4319 E. Slauson Avenue
Maywood, CA 90270
APPROVED AS TO FORM:

By: __________________________________________
Roxanne Diaz, City Attorney Date

Gateway Cities
Affordable Housing Trust
Bylaws
Approved by the
Gateway Cities Affordable Housing Trust Board of Directors On ___________, 2023

Table of Contents
Part 1 – Introduction to the Gateway Cities Affordable Housing Trust..................................1 Establishment............................................................................................................................1 GCAHT Guiding Vision and Mission .....................................................................................1 GCAHT Guiding Principles.....................................................................................................1 Part 2 – Bylaws of the Gateway Cities Affordable Housing Trust...........................................2 ARTICLE I - Name ..................................................................................................................2 ARTICLE II – Board of Directors..........................................................................................2 Section A: GCAHT Board of Directors ...............................................................................2 Section B: Selection of Advisory Board Members.............................................................3 Section C: Terms and Vacancies ..........................................................................................3 ARTICLE III – Duties of Officers and Board Members.......................................................3 Section A: Duties of the Board of Director Members: .......................................................3 Section B: Formation of Subcommittees ............................................................................3 ARTICLE IV – Meetings.........................................................................................................4 Section A: Regular Meetings ................................................................................................4 Section B: Special Meetings ..................................................................................................4 Section C: Voting on Project Funding ................................................................................4 Section D: Voting on Amending GCAHT’s Bylaws, Principles, or Procedures ..............4 Section E: Minutes................................................................................................................4 Section F: Meeting Procedure ..............................................................................................4 Section G: Location of Meetings .........................................................................................4 ARTICLE V – GCAHT Board Code of Conduct ..................................................................5 Section A: Compliance with Policies....................................................................................5 Section B: Conflicts of Interest............................................................................................5 Section C: Confidentiality....................................................................................................5 Section D: Gifts or Honoraria .............................................................................................6 Section E: Harassment .........................................................................................................6 Section F: Laws and Regulations ........................................................................................6

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Part 1 – Introduction to the Gateway Cities Affordable Housing Trust
Establishment
On January 4, 2023, the Gateway Cities Council of Governments approved the formation of the Gateway Cities Affordable Housing Trust (“GCAHT” or “Trust’). The Trust is a joint powers agency, which may do any of the following: (1) fund the planning and construction of affordable housing of all types and tenures for persons and families of extremely low-, very low-, low-, and moderate-income as defined in Section 50093 of the Health and Safety Code; (2) receive public and private financing and funds; and (3) authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by the Trust.

The Trust may consist of any of the cities within the Gateway Cities Council of Governments, which is a joint powers agency representing a subregion of Los Angeles County.

The GCAHT was established on ______________, by the execution of the Joint Exercise of Powers Agreement (the “Agreement”) by and between the Cities of ____________, ________________, __________________ (collectively, the “Cities”). These Bylaws were adopted by GCAHT’s Board of Directors and provide for the organization and administration of GCAHT. These Bylaws supplement the Agreement.

GCAHT Guiding Vision and Mission
A Steering Committee consisting of staff from various cities within the boundaries of the Trust along with individuals representing Los Angeles County, affordable financing, and affordable developers met on three separate occasions to discuss and recommend various governance, policy, and a guiding vision and mission as follows:

The vision of the Gateway Cities Affordable Housing Trust is to secure funding for the region that will increase the production of affordable housing and provide safe and quality homes for lower- and moderate-income individuals and families.

The mission of the Gateway Cities Affordable Housing Trust is to finance the development of affordable housing in the region and thereby increase the supply of housing to lower- and moderate-income individuals and families.

GCAHT Guiding Principles
The guiding principles of the GCAHT:

1. Implement the findings and declarations of the Agreement.

2. Provide funding based on principles of fiscal responsibility and demonstrated value to the taxpayer and funder.

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3. Retain local control and the ability for local governments to use GCAHT funding for housing solutions when needed, or to participate within the region as a whole.

4. Demonstrate accountability and transparency for parties to the Agreement and the public.

5. Promote public-private partnerships, nonprofit collaborations, and community building to maximize sources of public and private funds, when available, and to efficiently accelerate housing for moderate-, low-, very low- and extremely low-income individuals and families.

6. Provide opportunities to strengthen local partnerships and increase capacity of local cities and agencies engaged in fulfilling housing goals.

7. Commit to innovation and best practices in financing, production, and service delivery in supportive housing.

8. Serve the region’s needs geographically by (1) extremely low-, very low-, low-, and moderate-income, and supportive housing types and (2) population.

9. Foster collaborative planning to allow for project prioritization and establish a pipeline of projects.

10. Provide access to funding to ensure that the Gateway Cities subregion receives the maximum benefit for the resources provided.

11. Incorporate County’s Coordinated Entry System in conjunction with the cities’ locally driven protocols to ensure that the developed housing resources has appropriately targeted and prioritized eligible homeless populations for each project.

Part 2 – Bylaws of the Gateway Cities Affordable Housing Trust ARTICLE I - Name
The name of this entity shall be the “Gateway Cities Affordable Housing Trust” or “GCAHT” in these Bylaws.

ARTICLE II – Board of Directors
Section A: GCAHT Board of Directors

1. All members of the Board of Directors must be from a city that is a party to the Agreement and shall be appointed as set forth in the Agreement.

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2. Each of the nine (9) voting members of the Board of Directors of GCAHT shall be entitled to one (1) vote on the Board.

Section B: Selection of Advisory Board Members
An Advisory Board may be appointed by the Trust Board consisting of various government staff, persons with housing development, housing services, finance, and development expertise.

All Advisory Board members are entitled to attend all GCAHT regular and special meetings and to fully participate in such meetings but shall not constitute voting members of the Board.

Advisory Board members need not be elected officials.

Section C: Terms and Vacancies

1. Board of Directors: As set forth in the Agreement, terms of office for members of the Board of Directors shall generally be for two (2) years, subject to initial one (1) year terms for certain members as set forth in the Agreement. A Board of Director’s seat shall be deemed vacant if he or she leaves elected office, or if his or her appointing body removes him or her.

Upon a vacancy, the appointing body shall be notified and shall attempt to fill the vacancy within sixty (60) days of the vacancy occurring.

2. Advisory Board: Terms of office for members of the Advisory Board shall be for two (2) years. An Advisory Board member’s seat shall automatically be deemed vacant if that member fails to attend three consecutive regular or special meetings. Upon a vacancy, the Trust Board shall be notified and shall attempt to fill the vacancy within sixty (60) days of the vacancy occurring.

ARTICLE III – Duties of Officers and Board Members
Section A: Duties of the Board of Director Members:

1. Meet when called by the Chair to plan and coordinate the business and proposed activities of GCAHT;

2. Review and consider applications for project funding;

3. Review and consider GCAHT’s financial information, including the Annual Financial Report, any related independent audit, and the GCAHT’s annual budget; and

4. Serve on subcommittees or task forces when appropriate.

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Section B: Formation of Subcommittees
The Board may create subcommittees or task forces to accomplish the goals and purposes of GCAHT.

ARTICLE IV – Meetings
Section A: Regular Meetings
Regular meetings of GCAHT’s Board shall be held once every two (2) months, unless otherwise called by the Chair. Meeting notice, agenda, and public comment procedures shall comply with the provisions of the Ralph M Brown Act. The Clerk of the Board shall prepare meeting agendas and handle noticing requirements.

Section B: Special Meetings
Special meetings of GCAHT may be held at any time upon call of the Chair, provided that the special meetings’ noticing, and agenda complies with the Ralph M. Brown Act.

Section C: Voting on Project Funding
As set forth in the Agreement, every act or decision done or made by a majority of the Directors present at any meeting at which a quorum is present shall be the act of the Board of Directors.

However, the Board should strive to attain a unanimous decision on all projects which receive funding from GCAHT.

Section D: Voting on Amending GCAHT’s Bylaws, Principles, or Procedures

1. Amendments to GCAHT’s Bylaws, Principles or Procedures shall be considered at a regular meeting and shall comply with the Ralph M. Brown Act.

2. An amendment to these Bylaws must be approved by a majority vote of the Board of Directors.

Section E: Minutes
The Clerk of the Board shall take minutes for GCAHT. A previous meeting’s minutes shall be considered and approved at a subsequent meeting by a majority vote of the Board of Directors.

Section F: Meeting Procedure
The conduct of meetings shall be guided by Robert's Rules of Order (most recent published edition) where the question at issue is not determined by these Bylaws.

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Section G: Location of Meetings
The Board must meet in publicly accessible places typical for hosting public meetings, such as Council Chambers or city community rooms.

ARTICLE V – GCAHT Board Code of Conduct
This GCAHT Board Code of Conduct represents GCAHT’s commitment to high standards of ethics, public service, collegiality, and transparency. The following standards should be regarded as minimum expectations for conduct. GCAHT Board Members will act in accordance with and maintain the highest standards of professional integrity, impartiality, diligence, creativity, and productivity. GCAHT will act in accordance with applicable federal, state, and local laws and regulations.

Section A: Compliance with Policies
Members of the Board of Directors and Advisory Board will conduct the GCAHT business in accordance with the Agreement, these Bylaws, and all adopted policies, including conflict of interest policies.

Section B: Conflicts of Interest

1. The Board of Directors may not have a conflict of interest as determined by the California Political Reform Act (the “Act”), inclusive of the Levine Act, California Government Code section 81000, et. seq., and the regulations promulgated to effectuate the Act. Nor shall the Board of Directors have a conflict of interest under California Government Code section 1090.

2. Members of the Board of Directors are required to file a Statement of Economic Interest (Form 700) in the disclosure category as designated on the GCAHT Conflict of Interest Code.

Section C: Confidentiality
Members of the Board of Directors and Advisory Board must maintain the highest standards of confidentiality regarding information obtained directly or indirectly through their involvement with the GCAHT. This includes but is not limited to information about applications for funding, GCAHT parties and their organizations and funded agencies. Members must also avoid inadvertent disclosure of confidential information through casual public discussion, which may be overheard or misinterpreted. Notwithstanding the foregoing, the GCAHT recognizes that excepting such confidential information which must be carefully preserved, the conduct of its business shall be open and transparent in accordance with the Ralph M. Brown Act and the California Public Records Act.

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Section D: Gifts or Honoraria
It is not permissible for members of the Board of Directors and Advisory Board to offer or accept gifts, gratuities, excessive favors, or personal rewards intended to influence GCAHT decisions or activities.

Section E: Harassment
Harassment, interpreted as unwelcome conduct, comment, gesture, contact, or intimidating and offensive behavior likely to cause offense or humiliation, will not be tolerated and may result in disciplinary measures up to and including removal from GCAHT Board.

Section F: Laws and Regulations
GCAHT business will be conducted in a manner that reflects the highest standards and in accordance with all applicable federal, state, and local laws and regulations.

AGENDA REPORT

CITY OF MAYWOOD
AGENDA ITEM NO. 12.

DATE: February 22, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVE FOWLER, DIRECTOR OF BUILDING AND PLANNING
BY: JENNIFER VASQUEZ, CITY MANAGER
SUBJECT: CANNABIS LICENSE RENEWAL UPDATE FOR A COMMERCIAL CANNABIS RETAIL

LICENSE FOR FIREHOUSE HEALTHCARE INDUSTRIES, INCORPORTED DOING BUSINESS AS (DBA)FIREHOUSE 365 LOCATED AT 6118 ATLANTIC BOULEVARD RECOMMENDATION:

Staff recommends the Council receive and file.

BACKGROUND:

On July 13, 2022, the Maywood City Council at a regularly scheduled meeting discussed the approval of a renewal of a commercial cannabis retail license for Firehouse Healthcare Industries, Incorporated dba Firehouse 365 located at 6118 Atlantic Boulevard, for a one-year term expiring on May 12, 2023. During that meeting, the Council discussed the criteria involved in the renewal process. The criteria included financial audits, background checks and facility inspections. The facility inspection is where the Council was advised there were various corrections required. HdL had conducted several on-site inspections since Firehouse opened, including a virtual inspection during the Covid-19 pandemic. In (3) inspections, HDL determined as follows: During the October11, 2021 inspection, the inspection team found (6) six regulatory items that needed to be corrected (See attached Results of Compliance Inspection Letter). During the March 16, 2022, inspection, the Licensed premises was still having issues with the surveillance system (See attached Results of Compliance Inspection Letter). The June 14, 2022, inspection revealed that a theft had taken place and was not reported to the City. City staff and a Compliance Inspector from HdL conducted all the facility inspections.

In a previous inspection conducted last year, a wall was moved within the building without obtaining planning approval or permits. As reported to the City Council in July, we advised the Council that they submitted plans but had not obtained permits for the unpermitted work. As of the date of the July report, there were corrections to the plans that needed to be addressed.

The City Council at this meeting took staff’s recommendation and authorized the Director of Building and Planning to notify the applicant in writing of the City Council's decision to approve the renewal but would require a 90 day review of the business to determine if any further action was required.The City Council at this meeting took staff’s recommendation and authorized the Director of Building and Planning to notify the applicant in writing of the City Council's decision to approve the renewal but require a 90 day review of the business to determine if any further action was required.

DISCUSSION:

On September 21, 2022 and December 7, 2022, HdL and city staff conducted field inspections at the location.

The September inspection resulted in compliance with all 20 items from the regulatory, ordinance, and nonregulatory categories (See attached compliance letter). During the December inspection, three items were out of compliance. Two (2) were regulatory items.

1. The first item was that the QR (quick response) code was not in the front window, it was inside the door.

2. The second item was that all inventory should affix package tags to all cannabis inventory to identify the product. The violation was due to the fact that the inventory was located in a secured caged enclosure with the inventory slips located in a wall filing sleeve adjacent to the cage awaiting display on the retail floor.

3. The third item requires the business to remediate the other two issues. The Hdl inspector advised the business that this would be reinspected at their next inspection. This inspection looked at 36 items.

The unpermitted wall that was constructed received a final to the building permit on December 6, 2022. The next quarterly inspection will be conducted at the beginning of March and the license renewal process will be before this council at the April meeting.

LEGAL REVIEW:

The City Attorney has reviewed this report.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENT(S)

1. Firehouse Healthcare_Maywood_Compliance Inspection 09-21-2022

2. Firehouse Healthcare_Maywood_Compliance Inspection 12-07-2022

CITY OF MAYWOOD

COMPLIANCE INSPECTION

SUMMARY
On September 21, 2022, HdL conducted an in-person compliance inspection. This inspection was designed to evaluate site security, inventory control, and record-keeping procedures. It was also used to review prior recommendations made during their June 14, 2022 inspection.

At the time of the inspection, the Licensee was observed conducting commercial cannabis activities relative to that authorized by the license and found to be COMPLIANT with the regulations and local laws observed.

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
§15000.7 STORAGE OF INVENTORY Compliant
(a) All inventory stored on the Licensed premises shall be secured in a limited-access area. (b) All licensees shall not store cannabis goods outdoors. (b) Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas. (d) All cannabis and cannabis products must be stored on the licensed premises.

Observation: N/A
§15006 PREMISES DIAGRAM Compliant
The diagram shall show the boundaries of the property and the proposed premises, including all doorways, interior walls, rooms, windows, and limited-access areas. It shall also identify all commercial cannabis activities applicable to the business operations.

Observation: N/A
§15025 PREMISES REQUIREMENTS FOR RETAILERS AND MICROBUSINESS Compliant The licensee only conducts one type of commercial cannabis activity on the licensed premises; any licensed premises that are adjacent to another premises engaging in manufacturing or cultivation shall be separated Inspection Date September 21, 2022, Announced, Staff Present Inspection By Michelle Shaw
Business Name / DBA Firehouse Healthcare Industries, Inc. dba Firehouse365 State Lic #: C10-0000478-LIC
Local Lic #: CC-020
Business Address 6118 Atlantic Blvd.

Maywood, CA 90270
Business Type Type 10 - Retailer
Business Contact
Information
Alejandro (Alex) Topete
6118 Atlantic Blvd.

Maywood, CA 90270, (760) 501-5263
[email protected]

from those premises by walls, and any doors leading into each area shall remain closed.

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

Records must be kept for at least seven years from the date of creation. Records include, but are not limited to financial records, personnel records, training records, contracts, local permits, and all other documents prepared or executed by an owner or their employee. Records must be legible and accurate.

Observation: N/A
§15039 LICENSE POSTING REQUIREMENT Compliant
(a) Upon issuance of any 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. (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.

Observation: N/A
§15042 PREMISES ACCESS REQUIREMENTS 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 limited-access areas of the licensed premises.
(d) An individual who enters the limited-access area and is not employed by the licensee shall be escorted by an employee of the licensee at all times while within the limited-access area. (e) A licensee shall maintain a record of all authorized individuals who are not employees of the licensee who enter the limited-access area. The record shall include the name of the individual, the company the individual works for, and the reason the individual entered the limited-access area.

Observation: N/A
§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: N/A
§15044 VIDEO SURVEILLANCE SYSTEM Compliant
Shall at all times:
(b) Effectively and clearly record images of the area under surveillance. (c) Each camera shall be permanently mounted and in a fixed location and clearly record activity occurring within 20 feet of all points of entry and exit.
(d) Areas that shall be recorded include the following:
(1) Area where cannabis goods 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.
(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. (j) Recording shall clearly and accurately display the time and date. (k) System should be equipped with a failure notification system. (l) The licensee shall disclose on their premises diagram where the surveillance recordings are stored.

Observation: N/A
§15045 SECURITY PERSONNEL Compliant
A licensed retailer or licensed microbusiness authorized to engage in retail sales shall hire or contract security personnel who are at least 21 years of age to provide on-site security services for the licensed retail premises during the hours of operation. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and

11.5 of Division 3 of the Business and Professions Code. All licensees shall be held responsible and subject to discipline for any violations of the security personnel requirements.

Observation: N/A
§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, non-residential door locks on all points of entry and exit to the licensed 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.

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.
(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
§15051 TRACK AND TRACE SYSTEM RECONCILIATION Compliant
(a) The licensee 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 the on-hand inventory of cannabis and cannabis products with the records in the track and trace system.

Observation:
• Licensee is conducting inventory reconciliation of cannabis and cannabis products daily and weekly to meet the requirements of this section.
§15047.2 TRACK AND TRACE GENERAL REQUIREMENTS Compliant (a) A licensee shall create and maintain an account within the track and trace system prior to engaging in any commercial cannabis activity.
(b) All commercial cannabis activity shall be accurately recorded in the track and trace system. (c) A licensee is responsible for the accuracy and completeness of all data and information entered into the track and trace system. The licensee is responsible for all actions taken by the designated account manager or other account users while performing track and trace activities. (d) A person shall not intentionally misrepresent or falsify information entered into the track and trace system.

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 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 which 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;
(5) All food product handling or preparation shall comply with applicable California Department of Public Health and County of Los Angeles Public Health Department rules, and regulations. (6) All licensees shall provide a sufficient odor-absorbing ventilation and exhaust system so that odor generated inside the facility that is distinctive to its operation is not detected outside the facility. (b) A licensee shall ensure that the City Manager is notified in writing of the criminal conviction of the licensee, owner, or employee or when a licensee, owner, or employee has been charged with a criminal offense
(c) A licensee shall ensure that the City Manager is notified in writing of a civil penalty or judgment rendered against the licensee or any owner within forty-eight (48) hours of delivery of the verdict or entry of judgment, whichever is earlier.
(d) A licensee shall ensure that the City Manager is notified in writing of the revocation or suspension of a license or other authorization for a cannabis business issued by a state or local licensing authority within forty-eight (48) hours of receiving notice of the revocation. (e) A licensee shall notify the City Manager and the Chief of Police within twenty-four (24) hours of the discovery of any of the following situations:
(1) The licensee discovers a significant discrepancy in its inventory; (2) The licensee becomes aware of, or has reason to suspect, diversion, theft, loss, or any other criminal activity pertaining to the operations of the licensee by any owner, person with a financial interest in the cannabis business, employee, agent or volunteer of the cannabis business or by any third party; or
(3) The licensee becomes aware of or has reason to suspect, any breach of security.

Observation: N/A
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 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: N/A
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
• No recommendations made at this time.

ORDINANCE
• No recommendations made at this time.

NON-REGULATORY
• No recommendations made at this time.

EXHIBITS NONE

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.

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.
(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.

Inspection Date December 07, 2022, Announced, Staff Present Inspection By Michelle Shaw
Business Name / DBA Firehouse Healthcare Industries, Inc. dba Firehouse 365 State Lic #: C10-0000478-LIC
Local Lic #: CC-020
Business Address 6118 Atlantic Blvd.

Maywood, CA 90270
Business Type Type 10 - Retailer
Business Contact
Information
Alejandro (Alex) Topete
6118 Atlantic Blvd.

Maywood, CA 90270, (760) 501-5263
[email protected]

(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 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: N/A
§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 is 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 Non-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:
• Pursuant to subsection (b), the Licensee’s QR Code Certificate was not posted and visible within three feet of the entrance of the licensed premises. (Exhibit 1) §15042 PREMISES ACCESS REQUIREMENTS 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: N/A
§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: N/A
§15044 VIDEO SURVEILLANCE SYSTEM 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: N/A
§15045 SECURITY PERSONNEL Compliant
(a) A licensed retailer or licensed microbusiness authorized to engage in retail sales shall hire or contract security personnel who are at least 21 years of age to provide onsite security services for the licensed retail premises during the hours of operation. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. (b) A licensed non-storefront retailer or licensed microbusiness who is not engaged in storefront retail sales is not required to hire or contract security personnel. (c) If multiple licensed premises are contained within the same building, security personnel may be shared by all of the licensees to cover the entire building.

Observation: N/A
§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 Non-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:
o Cannabis and cannabis products stored in the secured storage room were not affixed with package tags with the applicable UID number pursuant to subsection (c). (Exhibit 2)

§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.
(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 Compliant
(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
§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
§15405 CANNABIS GOODS DISPLAY Compliant
(a) Cannabis goods for inspection and sale shall only be displayed in the retail area. (b) Cannabis and cannabis products may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without the

assistance of retailer personnel. A container must be provided to the customer by the licensed retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer.
(c) Cannabis and cannabis products removed from their packaging for display shall not be sold or consumed when the cannabis and cannabis products are no longer used for display.

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 a 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
§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. A 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
§15417 DELIVERY VEHICLE REQUIREMENTS Compliant
(a) A licensed retailer’s delivery employee, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by a delivery employee of the licensee. A vehicle used in the delivery of cannabis goods shall not have any marking or other indications on the exterior of the vehicle that may indicate that the delivery employee is carrying cannabis goods for delivery. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle.
(b) Cannabis goods shall be stored in a secure, fully enclosed trunk that cannot be accessed from inside the vehicle, or in a secured area or compartment within the interior of the vehicle. A “secured area” is defined as an area where solid or locking metal partitions, cages, or high-strength shatterproof acrylic can be used to create a secure compartment in the fully enclosed vehicle. (c) A licensed retailer’s delivery employee shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. Any cannabis goods left in an unattended vehicle must be stored in a container as required in subsection (b). (d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle and recording a history of all locations traveled to by the delivery employee while engaged in delivery. A dedicated GPS device must be owned by the licensee and used for delivery only. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. A licensed retailer shall provide this information to the Department upon request. The history of all locations traveled to by a delivery employee while engaging in delivery shall be maintained by the licensee for a minimum of 90 days. (e) Upon request, a licensed retailer shall provide the Department with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information. (f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the Department.

Observation: N/A
§15418 CANNABIS GOODS CARRIED DURING DELIVERY Compliant (a) A licensed retailer’s delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $10,000 at any time.
(e) Before leaving the licensed premises, the licensed retailer’s delivery driver must have a delivery inventory ledger of all cannabis goods provided to the licensed retailer’s delivery driver. For each cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail value, the track and trace identifier, and the weight, volume or other accurate measure of the cannabis good.

Delivery inventory ledgers may be maintained electronically. (f) The licensed retailer’s delivery driver shall maintain a log that includes all stops from the time the licensed retailer’s delivery driver leaves the licensed premises to the time that the licensed retailer’s delivery driver returns to the licensed premises, and the reason for each stop. The licensed retailer must maintain the log as a commercial cannabis activity record as required by this division. The log may be maintained electronically.
(g) The delivery request receipt provided to the licensed retailer’s delivery driver shall contain all of the information required in section 15420, except for the date and time the delivery was made, and the signature of the customer.
(h) Immediately upon request by the Department or any law enforcement officer, the licensed retailer’s delivery driver shall provide:
(1) All delivery inventory ledgers from the time the licensed retailer’s delivery driver left the licensed premises up to the time of the request;
(2) All delivery request receipts for cannabis goods carried by the driver, in the delivery vehicle, or any deliveries that have already been made to customers; and (3) The log of all stops from the time the licensed retailer’s delivery driver left the licensed premises up to the time of the request.

Observation: N/A

§15420 DELIVERY REQUEST RECEIPT Compliant
A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of cannabis goods.
(a) The delivery request receipt shall contain the following:
(1) The legal business name and license number of the licensed retailer; (2) The first name and employee number of the licensed retailer's delivery employee who delivered the order;
(3) The first name and employee number of the licensed retailer's employee who prepared the order for delivery;
(4) The first name of the customer and a licensed retailer-assigned customer number for the person who requested the delivery;
(5) The date and time the delivery request was made;
(6) The delivery address;
(7) A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested; (8) The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and
(9) Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery.
(b) The delivery employee shall retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer's records.
(c) A licensed retailer shall be able to identify the employee associated with each employee number upon request from the Department.
(d) A licensed retailer shall be able to identify the customer associated with each customer number upon request from the Department.

Observation: N/A
§15421 DELIVERY ROUTE Compliant
A delivery employee of a licensed retailer shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable.

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 has 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

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 §15039 – The QR Code Certificate was not posted and visible within three feet of the entrance. (Exhibit 1)
o §15048.5 – Inventory stored were not affixed with package tags with the applicable UID number. (Exhibit 2)
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 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: N/A
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
§15039 LICENSE POSTING REQUIREMENT
• Licensee should post the state-issued QR Code Certificate in the front window/door of the licensed premises within three feet of any public entrance, or in a locked display case mounted on the outside wall. A response is required for this recommendation. §15048.5 USE OF HARVEST BATCH NAME AND PACKAGE TAGS
• Licensee should ensure that all cannabis inventory stored on the licensed premises is affixed with package tags with the applicable UID numbers. 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.

NON-REGULATORY
• No recommendations made at this time.

EXHIBITS See the following pages.

State issued QR Code Certificate not posted on the outside of the licensed premises. (Exhibit 1)

Stored inventory lacking package tags with the applicable UID numbers. (Exhibit 2)