16.1 The Agreement may be executed in counterparts (including via facsimile or electronic copy), which will become effective only when every Party has signed and delivered a counterpart. The originals of any counterpart signature pages will be delivered to the County and retained as part of the original Agreement.
CITY-COUNTY MUNICIPAL SERVICES AGREEMENT
COUNTY OF LOS ANGELES DEPARTMENT OF ANIMAL CARE
AND CONTROL AND CITY OF MAYWOOD
IN WITNESS WHEREOF, the County of Los Angeles, by order of its Board of Supervisors has caused the Agreement to be executed by the Director of the Department of Animal Care and Control and the City has caused the Agreement to be executed on its behalf by its authorized representative.
COUNTY OF LOS ANGELES
By_______________________________
MARCIA MAYEDA
Director
Department of Animal Care and Control
Date_______________________________
CITY OF MAYWOOD
By_______________________________
City of Maywood, City Manager
Date_____________________________
ATTEST:
By______________________ _________
City Clerk Date
By______________________ _________
City Attorney Date
APPROVED AS TO FORM:
DAWYN R. HARRISON
County Counsel
By___________________________
David Beaudet
Senior Deputy, County Counsel
Date_________________________
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 18.
DATE: April 24, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: STEVE FOWLER, DIRECTOR OF BUILDING AND PLANNING
SUBJECT: CONSIDERATION OF THE RENEWAL OF A COMMERCIAL CANNABIS RETAIL
LICENSE FOR MAYWOOD GREEN SOLUTION, LLC DBA HAVEN
RECOMMENDATION:
Staff recommends that the City Council approve the application for the renewal of a commercial cannabis retail license for Maywood Green Solution, LLC (“Haven”), located at 3951 Slauson Avenue for a one-year term expiring on May 12, 2025 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 Ordinance also made any existing commercial cannabis business a non-conforming use subject to the provisions of Section 15.2 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 entities 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 of matching the product with its respective transaction. This measure will detect illegal diversion or the sale of unlicensed (illegal) product, which is central to the verification of the
lawful and complete remittance of the local cannabis tax.
DISCUSSION:
Haven's Conditional Use Permit was approved on June 19, 2018. Haven is a cannabis retailer or dispensary that obtained their business license in November 2018.
Haven currently operates as a brick and mortar dispensary with a single component; retail. They are licensed by the State of California Bureau of Cannabis Control (license #C10-0000082-LIC) as a Type 10 Retailer, and their license is currently valid through May 22, 2025.
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. As a result of the adherence to the regulations, the evaluation of Haven's commercial cannabis license renewal application was completed.
Background Check:
Applications for two (2) owners and twelve (12) employees were submitted and all background checks were subsequently cleared. Haven is in full compliance with this requirement.
Facility Inspection:
HdL has conducted several on-site inspections since Haven opened, including a virtual inspection during the Covid-19 pandemic. The latest inspection was conducted on March 11, 2024 with City staff in attendance. City staff and a Compliance Inspector from HdL conducted a facility inspection. The inspection revealed no noncompliant issues. As a result, the facility is considered to be in full compliance.
Financial Audit:
Haven is current on all audits.
In conclusion, based on the inspections, investigations, and audits described in this report, staff has determined that the business is in compliance and that none of the conditions in Section 5-45-05(b) exist, and therefore, staff recommends that the City Council approve the renewal of the license.
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
Haven's Maywood dispensary pays the 10% Cannabis Business Sales Tax (Revenue Account 4212) on a quarterly basis to the City.
ATTACHMENT(S)
1. HAVEN 2024 QUARTER 1 - COMPLIANCE REPORT
DCC CITATIONS COMPLIANT COMMENTS / NOTES
§15000.1(c)(e)(f)
General Requirements
§15000.ϳ
Storage of Inventory
§15006(a)(b)(c)(d)
Premises Diagram
§15027(a)(f)
Modification of Premises or
Operations
§15036(a)(b)
Notification of Theft, Loss,
and Criminal Activity
§15037(a)(c)(d)
General Record Retention
§15039(a)(b)(c)(d)(3)
License Posting Requirement
§15042(a)(d)(e)
Premises Access
Requirements
§15043
Licensee Employee Badge
§15044(c)(d)(g)(f)(h)
Video Surveillance System
§15045
Security Personnel
§15046
Locks
§15047
Alarm System
§15047.2
General Requirements
§15049(a)(b)
Track and Trace Reporting
All cannabis and cannabis products on the licensed premises are assigned a plant or package tag, except for harvested plants that are being dried, cured, graded, or trimmed, and recorded in the track and trace system. Activities are recorded in the track and trace system within 24 hours of occurrence.
Contact Name:
Identification badges meeting the requirements of this section are worn by employees on the licensed premises at all times.
Cameras are permanently mounted in a fixed location; limited-access areas, security rooms, DVR room, exits/entrances are recorded; and recordings are kept a minimum of 90-days.
Activities authorized by the license are conducted on the licensed premises. Licensee is the only owner of the license and uses the legal business name on all documents related to commercial cannabis activity.
A Licensee Notification and Request Form (DCC-LIC-028) is submitted to the DCC within 24 hours of discovery of theft, loss, or criminal activity on the licensed premises.
Email:
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The premises diagram includes a brief statement or description of the principal activity in each space, identify limited-access areas, and shows where all cameras are located and assigned a number.
All security personnel hired or contracted are licensed by the Bureau of Security and Investigative Services, and are at least 21 years of age.
All limited-access areas and all points of entry/exit to the licensed premises can be securely locked using commercial-grade, nonresidential door locks.
A License Notification and Request Form (DCC-LIC-027) is submitted to the DCC requesting for approval before any/all material or substantial changes, modifications, or alterations are made on the licensed premises.
The state license is prominently displayed and viewable by the public; the QR Code can be viewed and scanned from the outside; the QR Code is posted within 3 ft. of any public entrance; and the QR Code can be read by a smartphone from a distance of at least 3 ft.
A sign-in/sign-out procedure to establish identification of visitors is implemented. An individual not employed by the licensee is escorted at all times. A record of who entered the limited-access areas is accurately maintained and available upon request.
DEFINITIONS
REGULATORY COMPLIANCE
Inspection Report
License Expiration Date: Status:
Local License #:
License Expiration Date: Status:
State License #:
Staff Name: Phone #:
Inspection Date: Client: Staff Present:
Inspection Type:
Phone #:
Attachments: Eͬ Cultivation/Retail Questionnaire Exhibits Local Requirements Supplemental Attachments Vehicle Inspection Inspected By:
Business Type:
Business Address:
Legal Business Name / DBA:
A licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system.
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The inspection was designed to measure compliance related to site security, inventory control, access control, record keeping procedures in addition to other state and local public health and safety requirements. Findings do not represent a final determination of compliance. Please note that all Department of Cannabis Control (DCC) definitions listed below have been summarized. State regulations in their entirety may be found at:https://cannabis.ca.gov/cannabis-laws/dcc-regulations KƚŚĞƌ
03/11/2024 Michelle Shaw City of Maywood YES
Compliance Retail (Storefront) - Type 10 Calvin Ko (323) 562-5723 Maywood Green Solutions, LLC dba Haven C10-0000082-LIC
951 Slauson Ave., Maywood, CA 90270 05/22/2024 Active
Mark Simonian CC-019
05/12/2024 Active
■
YES
Licensee is only conducting commercial cannabis activity authorized by their state and local license.
YES
Secured cannabis storage is located within the facility and not outdoors. No cannabis inventory found on-site.
YES
Premises Diagram current and reflected accurate information. No changes made from the last inspection.
N/A
No modifications made from the last inspection.
N/A
Nothing to report from the last inspection.
YES
Requested documents retrieved from the business office. Records are legible and kept in a secured and protected area.
YES
Current State and Local licenses prominently posted.
YES
Sign-in/sign-out procedure is implemented and the visitor log accurately records who entered and exited the limited-access areas of the licensed premises.
YES
All employees are properly badged.
YES
Licensee meets the 90-day recording requirements. Cameras are permanently mounted in fixed locations and covers the limited-access areas of the licensed premises.
YES
Guards in possession of current state licenses. One (1) security guard on-site during business hours.
YES
Enhanced security measures installed on all doors. Commercial grade locks on all perimeter doors.
YES
Security alarm contract current. Alarm system monitored 24/7.
YES
METRC system maintained as required.
YES
Random examination of cannabis inventory met with no negative results. All inventory counts were accurate. Activities are recorded in METRC within 24 hours.
DCC CITATIONS COMPLIANT COMMENTS / NOTES
§15402(a)(b)(c)
Customer Access to Retail
Area
§15403
Hours of Operation
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§15424(a)(b)(c)
Inventory Reconciliation
CITATIONS COMPLIANT COMMENTS / NOTES
OSHA 1910.36
Design and Construction
Requirements for Exit Routes
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DEFINITIONS
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REGULATIONS BY BUSINESS TYPE
Chapter 3. RETAIL
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The physical inventory is all accounted for, is consistent with the licensee's inventory records, and made available upon request. /ĨƚŚĞĨƚ͕ĚŝǀĞƌƐŝŽŶ͕ůŽƐƐ͕ŽƌƐŝŐŶŝĨŝĐĂŶƚ ĚŝƐĐƌĞƉĂŶĐLJĂƐĚĞĨŝŶĞĚŝŶƐĞĐƚŝŽŶϭϱϬϯϰŝƐĚŝƐĐŽǀĞƌĞĚ͕ƚŚĞůŝĐĞŶƐĞĞŶŽƚŝĨŝĞƐƚŚĞĞƉĂƌƚŵĞŶƚ ĂŶĚůĂǁĞŶĨŽƌĐĞŵĞŶƚƉƵƌƐƵĂŶƚƚŽƐĞĐƚŝŽŶϭϱϬϯϲ͘
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Egress and Evacuation: Exit routes are permanent. A minimum of two (2) exit routes in the workplace are in place and leads directly outside, to a street, or open space. The doors swing out in the direction of exit travel. Exit doors are unlocked. Employees are able to open the door from the inside at all times without keys, tools, or special knowledge.
DEFINITIONS
ĂŶŶĂďŝƐŐŽŽĚƐĂƌĞ ƌĞĐĞŝǀĞĚ ĨƌŽŵĂůŝĐĞŶƐĞĚ ƌĞƚĂŝůĞƌŽƌůŝĐĞŶƐĞĚŵŝĐƌŽďƵƐŝŶĞƐƐĂƵƚŚŽƌŝnjĞĚ ƚŽĞŶŐĂŐĞ ŝŶ ĚŝƐƚƌŝďƵƚŝŽŶ͘ dŚĞ ĐĂŶŶĂďŝƐ ŐŽŽĚƐ ŚĂǀĞ ŶŽƚ ĞdžĐĞĞĚĞĚ ƚŚĞŝƌ ďĞƐƚͲďLJ͕ ƐĞůůͲ ďLJ͕ ŽƌĞdžƉŝƌĂƚŝŽŶĚĂƚĞ͘
ĞĨĞĐƚŝǀĞŵĂŶƵĨĂĐƚƵƌĞĚĐĂŶŶĂďŝƐƉƌŽĚƵĐƚƐĂƌĞĚĞƐƚƌŽLJĞĚŽƌƌĞƚƵƌŶĞĚƚŽƚŚĞůŝĐĞŶƐĞĚ ĚŝƐƚƌŝďƵƚŽƌĨƌŽŵǁŚŽŵƚŚĞĐĂŶŶĂďŝƐŐŽŽĚƐǁĞƌĞŽďƚĂŝŶĞĚ͘ ĂŶŶĂďŝƐĂĐĐĞƐƐŽƌŝĞƐĂŶĚďƌĂŶĚĞĚŵĞƌĐŚĂŶĚŝƐĞŽĨĂŶLJůŝĐĞŶƐĞĞĂƌĞƐŽůĚ͘WƌĞƉĂĐŬĂŐĞĚ͕ŶŽŶͲ ĐĂŶŶĂďŝƐͲŝŶĨƵƐĞĚ͕ ŶŽŶͲĂůĐŽŚŽůŝĐ ĨŽŽĚ ĂŶĚ ďĞǀĞƌĂŐĞƐ ĂƌĞ ĐŽŶƐƵŵĞĚ ŝŶ ƚŚĞ ĚĞƐŝŐŶĂƚĞĚ ĐŽŶƐƵŵƉƚŝŽŶ ĂƌĞĂ ĂŶĚ ƐƵĐŚ ĂĐƚŝǀŝƚŝĞƐ ĂƌĞ ĂůůŽǁĞĚ ďLJ ƚŚĞ ůŽĐĂů ũƵƌŝƐĚŝĐƚŝŽŶ͘ WƌĞƉĂĐŬĂŐĞĚ͕ŶŽŶͲĐĂŶŶĂďŝƐͲŝŶĨƵƐĞĚ͕ŶŽŶͲĂůĐŽŚŽůŝĐĨŽŽĚĂŶĚďĞǀĞƌĂŐĞƐƐŽůĚŽŶƐŝƚĞ͘ The age of an individual is confirmed prior to granting him/her access to the licensed premises; one (1) employee is physically present in the retail area at all times; and all sales are done within the retail area of the licensed premises. ĂŶŶĂďŝƐ ŐŽŽĚƐ ĂƌĞ ŽŶůLJ ĚŝƐƉůĂLJĞĚ ŝŶ ƚŚĞ ƌĞƚĂŝů ĂƌĞĂ͘ ŝƐƉůĂLJ ĐŽŶƚĂŝŶĞƌƐ ĂƌĞ ĂĐĐĞƐƐŝďůĞ ƚŽ ĐƵƐƚŽŵĞƌƐ ǁŝƚŚ ĂƐƐŝƐƚĂŶĐĞ ĨƌŽŵ ĂŶ ĞŵƉůŽLJĞĞ ŽĨ ƚŚĞ ůŝĐĞŶƐĞĞ͘ ŵƉůŽLJĞĞƐ ƌĞŵĂŝŶ ǁŝƚŚ ƚŚĞ
ĐƵƐƚŽŵĞƌĂƚĂůůƚŝŵĞƐ͘
The licensed premises is open between the hours of 6:00 a.m and 10:00 p.m. PST.
WůĂŶƚƐ ĂƌĞ ŶŽƚ ĨůŽǁĞƌŝŶŐ͕ ŝƐ ƐŚŽƌƚĞƌ ĂŶĚ ŶĂƌƌŽǁĞƌ ƚŚĂŶ ϭϴ ŝŶĐŚĞƐ͖ ĂŶĚ ƉůĂŶƚƐ Žƌ ƐĞĞĚƐŽƌŝŐŝŶĂƚĞĚĨƌŽŵĂůŝĐĞŶƐĞĚŶƵƌƐĞƌLJŽƌĂůŝĐĞŶƐĞĚŵŝĐƌŽďƵƐŝŶĞƐƐ͘ ZĞƚĂŝůĞƌĚŽĞƐŶŽƚĂĐĐĞƉƚ͕ƉŽƐƐĞƐƐ͕ŽƌƐĞůůĐĂŶŶĂďŝƐŐŽŽĚƐƚŚĂƚĂƌĞŶŽƚƉĂĐŬĂŐĞĚĂƐƚŚĞLJǁŝůů ďĞƐŽůĚĂƚĨŝŶĂůƐĂůĞ͘ZĞƚĂŝůĞƌĚŽĞƐŶŽƚƉĂĐŬĂŐĞŽƌůĂďĞůĐĂŶŶĂďŝƐŐŽŽĚƐ͘ĂƌĐŽĚĞƐŽƌĂƐŝŵŝůĂƌ ƐƚŝĐŬĞƌƐŵĂLJďĞƵƐĞĚŝŶŝŶǀĞŶƚŽƌLJƚƌĂĐŬŝŶŐ͘dŚĞďĂƌĐŽĚĞŽƌƐƚŝĐŬĞƌĚŽĞƐŶŽƚŽďƐĐƵƌĞĂŶLJ ƌĞƋƵŝƌĞĚůĂďĞůƐ͘
WĂĐŬĂŐĞƐͬĞdžŝƚƉĂĐŬĂŐĞƐĂƌĞƚĂŵƉĞƌͲĞǀŝĚĞŶƚ͕ĐŚŝůĚƌĞƐŝƐƚĂŶƚ͕ĂŶĚƌĞƐĞĂůĂďůĞ͘/ŵŵĂƚƵƌĞ ƉůĂŶƚƐĂƌĞŶŽƚƉůĂĐĞĚŝŶƚĂŵƉĞƌͲĞǀŝĚĞŶƚ͕ĐŚŝůĚƌĞƐŝƐƚĂŶƚ͕ĂŶĚƌĞƐĞĂůĂďůĞƉĂĐŬĂŐŝŶŐ͘ www.hdlcompanies.com
YES
Access granted only after ID is checked and confirmed by security.
YES
Requirements met.
YES
Cannabis goods displayed in the retail area. Employees assist customers at all times. No open samples on sales floor. Inventory is displayed and stored behind the sales counter.
YES
Cannabis goods sampled have not exceeded their best-by, sell-by, or expiration dates.
YES
Branded merchandise are sold on the licensed premises.
N/A
No live plants and seeds found on-site
YES
Returned cannabis goods are not sold after it has been returned by a customer.
YES
Packages sampled compliant with regulations.
YES
Packages/exit packages meet requirements.
N/A
Licensee holds a Retail Storefront license type.
N/A
Delivery services are not being provided to customers.
N/A
Delivery vehicles not found on-site.
N/A
Delivery vehicles not found on-site.
YES
Inventory is reconciled monthly. No significant discrepancies to report at the time.
YES
All emergency exit routes are unlocked are free of obstructions at the time.
CITATIONS COMPLIANT COMMENTS / NOTES
REGULATORY COMPLIANCE
Local Requirements
Inspection Date: Inspected By: Client: State License #: Status:
Legal Business Name/DBA: Local License #: Status:
LOCAL ORDINANCE AND OTHER REGULATIONS
DEFINITIONS
www.hdlcompanies.com
03/11/2024 Michelle Shaw City of Maywood C10-0000082-LIC Active Maywood Green Solutions, LLC dba Haven CC-019 05/12/2024 5-45.02(a)
License Required
A valid City license and "CUP" (Conditional Use Permit) are issued under this chapter.
Permits/licenses are current.
YES
5-46.07 (a)(1-6)
Operation Requirements
Licensee is compliant with state and local laws, maintains a record system; equipped with commercial grade locks, security alarms, and a camera system; sufficient odor absorbing ventilation and exhaust system are installed.
Meets requirements.
YES
5-46.07 (e)(1)(2)
Operation Requirements
Licensee is aware to notify the City Manager and the Chief of Police within 24 hours of discovery any of the following: significant discrepancy in inventory, diversion, theft, loss, or criminal activity.
Licensee acknowledges that any/all activity is to be reported to the City within 24 hours of discovery.
YES
5-46.14
Maintenance of Records
Records are produced at the premises in either hard copy or electronic form.
Records available upon request in both hard and electronic copy.
YES
5-46.15
Site Management
Maintenance of the exterior of the premises meets the requirements of this section.
Meets requirements.
YES
OBSERVATIONS / CORRECTIVE ACTIONS
COMPLIANCE NARRATIVE:
It is the responsibility of the licensee to assure their facility is compliant with all state and local regulations. In the event, non-compliant activity is observed, recommendations for corrective action will be made to assist the licensee with making the appropriate changes. Recommendations will be communicated to the licensee subsequent to this report.
For questions or concerns, HdL Compliance Services can be reached at 714-879-5000. www.hdlcompanies.com
The business was operating in compliance with local and state regulations related to premises access control, overall site security, video surveillance, waste management, and inventory tracking. The documents requested and presented were available in electronic and hard copy format. Live access to the inventory tracking system (METRC) and video surveillance system were available and viewable upon request.
The Licensee is COMPLIANT with all state regulations and local ordinances examined at this time. No additional observations or corrective actions were discussed.
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 19.
DATE: April 24, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: STEVE FOWLER, DIRECTOR OF BUILDING AND PLANNING
SUBJECT: CONSIDERATION OF THE RENEWAL OF A COMMERCIAL CANNABIS RETAIL
LICENSE FOR FIREHOUSE HEALTHCARE INDUSTRIES, INCORPORATED DBA FIREHOUSE 365
RECOMMENDATION:
Staff recommends that the City Council approve the application for a commercial cannabis retail license renewal for Firehouse Healthcare Industries, Incorporated dba Firehouse 365 located at 6118 Atlantic Boulevard, for a one-year term expiring on May 12, 2025.
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 Ordinance also made any existing commercial cannabis business a non-conforming use subject to the provisions of Section 15.2 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 as set forth in Section 5-46.05 of the Maywood Municipal Code.
This process requires that the City Council determines if the cannabis entities 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 of matching the product with its respective transaction. This measure will detect illegal diversion or the sale of unlicensed (illegal) product, which is central to the verification of the
lawful and complete remittance of the local cannabis tax.
DISCUSSION:
Firehouse 365’s Conditional Use Permit was approved on August 21, 2018. Firehouse 365 is a cannabis retailer that obtained their business license in December 2018. All audits and sales tax payments have been made.
Firehouse 365 currently operates as a brick-and-mortar dispensary with a single component; retail. They are licensed by the State of California Bureau of Cannabis Control (license #C10-0000478-LIC) as a Type 10 Retailer, and their license is valid through July 21, 2024.
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. As a result of the adherence to the regulations, the evaluation of Firehouse's commercial cannabis license renewal application was completed.
Background Check:
Applications for two (2) owners and ten (10) employees were submitted and all background checks were subsequently cleared. Firehouse 365 is in full compliance with this requirement.
Facility Inspection:
HdL has conducted several on-site inspections since Firehouse 365 opened, including a virtual inspection during the Covid-19 pandemic. The latest inspection was conducted on March 11, 2024 with City staff in attendance. City staff and a Compliance Inspector from HdL conducted a facility inspection. The inspection revealed an item out of compliance as follows:
i. Firehouse 365 was not able to provide proof of security services and that on-site security personnel are present at all times during the hours of operation. The following week, we received a valid contract between Firehouse 365 and their security services.
Subsequently, City Staff performed an unannounced inspection to confirm that the retail business did have onsite security personnel. The item has been resolved.
Financial Audit:
Firehouse 365 is current on all audits.
In conclusion, based on the inspections, investigations and audits described in this report, Staff has determined that the business is in compliance and that none of the conditions in Section 5-45-05(b) exist and therefore, staff recommends that the City Council approve the renewal of the license.
LEGAL REVIEW:
FISCAL IMPACT:
Firehouse 365 pays the 10% Cannabis Business Sales Tax (Revenue Account 4212) on a quarterly basis to the City.
ATTACHMENT(S)
1. FIREHOUSE 2024 QUARTER 1 - COMPLIANCE REPORT
DCC CITATIONS COMPLIANT COMMENTS / NOTES
§15000.1(c)(e)(f)
General Requirements
§15000.ϳ
Storage of Inventory
§15006(a)(b)(c)(d)
Premises Diagram
§15027(a)(f)
Modification of Premises or
Operations
§15036(a)(b)
Notification of Theft, Loss,
and Criminal Activity
§15037(a)(c)(d)
General Record Retention
§15039(a)(b)(c)(d)(3)
License Posting Requirement
§15042(a)(d)(e)
Premises Access
Requirements
§15043
Licensee Employee Badge
§15044(c)(d)(g)(f)(h)
Video Surveillance System
§15045
Security Personnel
§15046
Locks
§15047
Alarm System
§15047.2
General Requirements
§15049(a)(b)
Track and Trace Reporting
All cannabis and cannabis products on the licensed premises are assigned a plant or package tag, except for harvested plants that are being dried, cured, graded, or trimmed, and recorded in the track and trace system. Activities are recorded in the track and trace system within 24 hours of occurrence.
Contact Name:
Identification badges meeting the requirements of this section are worn by employees on the licensed premises at all times.
Cameras are permanently mounted in a fixed location; limited-access areas, security rooms, DVR room, exits/entrances are recorded; and recordings are kept a minimum of 90-days.
Activities authorized by the license are conducted on the licensed premises. Licensee is the only owner of the license and uses the legal business name on all documents related to commercial cannabis activity.
A Licensee Notification and Request Form (DCC-LIC-028) is submitted to the DCC within 24 hours of discovery of theft, loss, or criminal activity on the licensed premises.
Email:
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The premises diagram includes a brief statement or description of the principal activity in each space, identify limited-access areas, and shows where all cameras are located and assigned a number.
All security personnel hired or contracted are licensed by the Bureau of Security and Investigative Services, and are at least 21 years of age.
All limited-access areas and all points of entry/exit to the licensed premises can be securely locked using commercial-grade, nonresidential door locks.
A License Notification and Request Form (DCC-LIC-027) is submitted to the DCC requesting for approval before any/all material or substantial changes, modifications, or alterations are made on the licensed premises.
The state license is prominently displayed and viewable by the public; the QR Code can be viewed and scanned from the outside; the QR Code is posted within 3 ft. of any public entrance; and the QR Code can be read by a smartphone from a distance of at least 3 ft.
A sign-in/sign-out procedure to establish identification of visitors is implemented. An individual not employed by the licensee is escorted at all times. A record of who entered the limited-access areas is accurately maintained and available upon request.
DEFINITIONS
REGULATORY COMPLIANCE
Inspection Report
License Expiration Date: Status:
Local License #:
License Expiration Date: Status:
State License #:
Staff Name: Phone #:
Inspection Date: Client: Staff Present:
Inspection Type:
Phone #:
Attachments: Eͬ Cultivation/Retail Questionnaire Exhibits Local Requirements Supplemental Attachments Vehicle Inspection Inspected By:
Business Type:
Business Address:
Legal Business Name / DBA:
A licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system.
ŶĂĐĐŽƵŶƚǁŝƚŚŝŶƚŚĞƚƌĂĐŬĂŶĚƚƌĂĐĞƐLJƐƚĞŵŝƐĐƌĞĂƚĞĚĂŶĚŵĂŝŶƚĂŝŶĞĚƉƌŝŽƌƚŽƚŚĞůŝĐĞŶƐĞĞ ĞŶŐĂŐŝŶŐŝŶĂŶLJĐŽŵŵĞƌĐŝĂůĐĂŶŶĂďŝƐĂĐƚŝǀŝƚLJ͘ůůĂĐƚŝǀŝƚLJĂƌĞĂĐĐƵƌĂƚĞůLJƌĞĐŽƌĚĞĚŝŶƚŚĞƚƌĂĐŬ ĂŶĚƚƌĂĐĞƐLJƐƚĞŵ͘
ĂŶŶĂďŝƐ ŐŽŽĚƐ ĂƌĞ ŽŶůLJ ƐƚŽƌĞĚ ǁŝƚŚŝŶ ƚŚĞ ůŝĐĞŶƐĞĚ ƉƌĞŵŝƐĞƐ͕ ŶŽƚ ƐƚŽƌĞĚ ŽƵƚĚŽŽƌƐ͕ ƚŚĞ ďĂƚŚƌŽŽŵƐͬĐŚĂŶŐŝŶŐ ĨĂĐŝůŝƚŝĞƐ ĂƌĞ ƐĞƉĂƌĂƚĞĚ ĨƌŽŵ Ăůů ƐƚŽƌĂŐĞ ĂƌĞĂƐ ďLJ ƐŽůŝĚ ǁĂůůƐ ;ĨůŽŽƌ ƚŽ ĐĞŝůŝŶŐͿ͕ ĂŶĚ ĞŵƉůŽLJĞĞ ďƌĞĂŬ ĂƌĞĂƐ ĂƌĞ ƐĞƉĂƌĂƚĞ ĂŶĚ ĚŝƐƚŝŶĐƚ ǁŚĞƌĞ ĐĂŶŶĂďŝƐ ŝƐ ƐƚŽƌĞĚ͘ ^ŚŝƉƉŝŶŐĐŽŶƚĂŝŶĞƌƐĂƌĞĂǀĂŝůĂďůĞĂƐƚĞŵƉŽƌĂƌLJƐƚŽƌĂŐĞƐƉĂĐĞ͘ All records are retained for at least 7 years from date of creation, records are legible and accurate, and stored in a secured area protected from debris, moisture, contamination, and theft.
The inspection was designed to measure compliance related to site security, inventory control, access control, record keeping procedures in addition to other state and local public health and safety requirements. Findings do not represent a final determination of compliance. Please note that all Department of Cannabis Control (DCC) definitions listed below have been summarized. State regulations in their entirety may be found at:https://cannabis.ca.gov/cannabis-laws/dcc-regulations KƚŚĞƌ
03/11/2024 Michelle Shaw City of Maywood YES
Compliance Retail (Storefront) - Type 10 Calvin Ko (323) 562-5723 Firehouse Healthcare Industries, Inc. dba Firehouse365 C10-0000478-LIC 6118 Atlantic Blvd., Maywood, CA 90270 07/21/2024 Active Alejandro (Alex) Topete 19284
12/31/2023 Active; Pending Renewal
■
YES
Licensee is only conducting commercial cannabis activity authorized by their state and local license.
YES
Secured cannabis storage is located within the facility and not outdoors. No cannabis inventory found on-site.
YES
Premises Diagram current and reflected accurate information. No changes made from the last inspection.
N/A
No modifications made from the last inspection.
N/A
Nothing to report from the last inspection.
YES
Requested documents retrieved from the business office. Records are legible and kept in a secured and protected area.
YES
Current State and Local licenses prominently posted.
YES
Sign-in/sign-out procedure is implemented and the visitor log accurately records who entered and exited the limited-access areas of the licensed premises.
YES
All employees are properly badged.
YES
Video recording systems can retain the 90-day minimum requirement.
NO
No security personnel were present at the time. The Licensee's employees were checking identification of customers before allowing them access to the limited-access areas of the licensed premises.
YES
Enhanced security measures installed on all doors. Commercial grade locks on all perimeter doors.
YES
Security alarm contract current. Alarm system monitored 24/7.
YES
METRC system maintained as required.
YES
Random examination of cannabis inventory met with no negative results. All inventory counts were accurate. Activities are recorded in METRC within 24 hours.
DCC CITATIONS COMPLIANT COMMENTS / NOTES
§15402(a)(b)(c)
Customer Access to Retail
Area
§15403
Hours of Operation
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ĂŶŶĂďŝƐ'ŽŽĚƐĂƌƌŝĞĚ
ƵƌŝŶŐĞůŝǀĞƌLJ
§15424(a)(b)(c)
Inventory Reconciliation
CITATIONS COMPLIANT COMMENTS / NOTES
OSHA 1910.36
Design and Construction
Requirements for Exit Routes
sĞŚŝĐůĞƐĂƌĞĞŶĐůŽƐĞĚĂŶĚƵŶŵĂƌŬĞĚ͖ĐĂŶŶĂďŝƐŐŽŽĚƐĂƌĞŶŽƚǀŝƐŝďůĞƚŽƚŚĞƉƵďůŝĐĂŶĚŝŶĂ ΗƐĞĐƵƌĞĚ ĂƌĞĂ ǁŝƚŚŝŶ ƚŚĞ ǀĞŚŝĐůĞΗ͖ ǀĞŚŝĐůĞ ŝƐ ŽƵƚĨŝƚƚĞĚ ǁŝƚŚ Ă 'W^ ĚĞǀŝĐĞ ŽǁŶĞĚ ďLJ ƚŚĞ>ŝĐĞŶƐĞĞ͕ĐĂƉĂďůĞŽĨϵϬͲĚĂLJƐƌĞĐŽƌĚŝŶŐƌĞƚĞŶƚŝŽŶ͘
DEFINITIONS
ĞůŝǀĞƌLJ ĞŵƉůŽLJĞĞ ŝƐ Ăƚ ůĞĂƐƚ Ϯϭ LJĞĂƌƐ ŽĨ ĂŐĞ͘ ĚĞůŝǀĞƌLJ ĞŵƉůŽLJĞĞ ƉƌŽǀŝĚĞƐ Ă ĐŽƉLJ ŽĨ ƚŚĞ ƌĞƚĂŝů ůŝĐĞŶƐĞ͕ Ă ĐŽƉLJ ŽĨ ƚŚĞ YZ ŽĚĞ ĞƌƚŝĨŝĐĂƚĞ͕ ĂŶĚ ƚŚĞŝƌ ĞŵƉůŽLJĞĞ / ďĂĚŐĞ ƚŽ Ă ĚĞůŝǀĞƌLJ ĐƵƐƚŽŵĞƌ ƵƉŽŶ ƌĞƋƵĞƐƚ͘ dŚĞ ƌĞƚĂŝůĞƌ ŵĂŝŶƚĂŝŶƐ ĂŶ ĂĐĐƵƌĂƚĞ ůŝƐƚ ŽĨ ĚĞůŝǀĞƌLJ ĞŵƉůŽLJĞĞƐĂŶĚƚŚĞůŝƐƚŝƐĂǀĂŝůĂďůĞƵƉŽŶƌĞƋƵĞƐƚ͘
dŚĞŶŽŶͲƐƚŽƌĞĨƌŽŶƚƌĞƚĂŝůĞƌĐŽŵƉůŝĞƐǁŝƚŚĂůůƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐĂƉƉůŝĐĂďůĞƚŽƌĞƚĂŝůĞƌ ůŝĐĞŶƐĞĞƐ͕ĞdžĐĞƉƚĨŽƌƚŚŽƐĞƉƌŽǀŝƐŝŽŶƐƌĞůĂƚĞĚƚŽƉƵďůŝĐĂĐĐĞƐƐƚŽƚŚĞůŝĐĞŶƐĞĚƉƌĞŵŝƐĞƐĂŶĚ ƚŚĞƌĞƚĂŝůĂƌĞĂ͘dŚĞůŝĐĞŶƐĞĚƉƌĞŵŝƐĞƐŝƐĐůŽƐĞĚƚŽƚŚĞƉƵďůŝĐ͘
REGULATIONS BY BUSINESS TYPE
Chapter 3. RETAIL
dŚĞ ĚĞůŝǀĞƌLJ ĞŵƉůŽLJĞĞ ŵƵƐƚ ŚĂǀĞ Ă ĚĞůŝǀĞƌLJ ŝŶǀĞŶƚŽƌLJ ůĞĚŐĞƌ ŽĨ Ăůů ĐĂŶŶĂďŝƐ ŐŽŽĚƐ͘ dŚĞ ĐŽŶƚĞŶƚƐ ŽĨ ƚŚĞ ĚĞůŝǀĞƌLJ ŝŶǀĞŶƚŽƌLJ ůĞĚŐĞƌ ŵƵƐƚ ĐŽŵƉůLJ ǁŝƚŚ ƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ƐĞĐƚŝŽŶϭϱϬϰϵ͘ϯ͘dŚĞĚĞůŝǀĞƌLJĞŵƉůŽLJĞĞƐŚĂůůŵĂŝŶƚĂŝŶƚŚĞĚĞůŝǀĞƌLJŝŶǀĞŶƚŽƌLJůĞĚŐĞƌŝŶŚĂƌĚ ĐŽƉLJŽƌĞůĞĐƚƌŽŶŝĐĐŽƉLJ͘
The physical inventory is all accounted for, is consistent with the licensee's inventory records, and made available upon request. /ĨƚŚĞĨƚ͕ĚŝǀĞƌƐŝŽŶ͕ůŽƐƐ͕ŽƌƐŝŐŶŝĨŝĐĂŶƚ ĚŝƐĐƌĞƉĂŶĐLJĂƐĚĞĨŝŶĞĚŝŶƐĞĐƚŝŽŶϭϱϬϯϰŝƐĚŝƐĐŽǀĞƌĞĚ͕ƚŚĞůŝĐĞŶƐĞĞŶŽƚŝĨŝĞƐƚŚĞĞƉĂƌƚŵĞŶƚ ĂŶĚůĂǁĞŶĨŽƌĐĞŵĞŶƚƉƵƌƐƵĂŶƚƚŽƐĞĐƚŝŽŶϭϱϬϯϲ͘
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Egress and Evacuation: Exit routes are permanent. A minimum of two (2) exit routes in the workplace are in place and leads directly outside, to a street, or open space. The doors swing out in the direction of exit travel. Exit doors are unlocked. Employees are able to open the door from the inside at all times without keys, tools, or special knowledge.
DEFINITIONS
ĂŶŶĂďŝƐŐŽŽĚƐĂƌĞ ƌĞĐĞŝǀĞĚ ĨƌŽŵĂůŝĐĞŶƐĞĚ ƌĞƚĂŝůĞƌŽƌůŝĐĞŶƐĞĚŵŝĐƌŽďƵƐŝŶĞƐƐĂƵƚŚŽƌŝnjĞĚ ƚŽĞŶŐĂŐĞ ŝŶ ĚŝƐƚƌŝďƵƚŝŽŶ͘ dŚĞ ĐĂŶŶĂďŝƐ ŐŽŽĚƐ ŚĂǀĞ ŶŽƚ ĞdžĐĞĞĚĞĚ ƚŚĞŝƌ ďĞƐƚͲďLJ͕ ƐĞůůͲ ďLJ͕ ŽƌĞdžƉŝƌĂƚŝŽŶĚĂƚĞ͘
ĞĨĞĐƚŝǀĞŵĂŶƵĨĂĐƚƵƌĞĚĐĂŶŶĂďŝƐƉƌŽĚƵĐƚƐĂƌĞĚĞƐƚƌŽLJĞĚŽƌƌĞƚƵƌŶĞĚƚŽƚŚĞůŝĐĞŶƐĞĚ ĚŝƐƚƌŝďƵƚŽƌĨƌŽŵǁŚŽŵƚŚĞĐĂŶŶĂďŝƐŐŽŽĚƐǁĞƌĞŽďƚĂŝŶĞĚ͘ ĂŶŶĂďŝƐĂĐĐĞƐƐŽƌŝĞƐĂŶĚďƌĂŶĚĞĚŵĞƌĐŚĂŶĚŝƐĞŽĨĂŶLJůŝĐĞŶƐĞĞĂƌĞƐŽůĚ͘WƌĞƉĂĐŬĂŐĞĚ͕ŶŽŶͲ ĐĂŶŶĂďŝƐͲŝŶĨƵƐĞĚ͕ ŶŽŶͲĂůĐŽŚŽůŝĐ ĨŽŽĚ ĂŶĚ ďĞǀĞƌĂŐĞƐ ĂƌĞ ĐŽŶƐƵŵĞĚ ŝŶ ƚŚĞ ĚĞƐŝŐŶĂƚĞĚ ĐŽŶƐƵŵƉƚŝŽŶ ĂƌĞĂ ĂŶĚ ƐƵĐŚ ĂĐƚŝǀŝƚŝĞƐ ĂƌĞ ĂůůŽǁĞĚ ďLJ ƚŚĞ ůŽĐĂů ũƵƌŝƐĚŝĐƚŝŽŶ͘ WƌĞƉĂĐŬĂŐĞĚ͕ŶŽŶͲĐĂŶŶĂďŝƐͲŝŶĨƵƐĞĚ͕ŶŽŶͲĂůĐŽŚŽůŝĐĨŽŽĚĂŶĚďĞǀĞƌĂŐĞƐƐŽůĚŽŶƐŝƚĞ͘ The age of an individual is confirmed prior to granting him/her access to the licensed premises; one (1) employee is physically present in the retail area at all times; and all sales are done within the retail area of the licensed premises. ĂŶŶĂďŝƐ ŐŽŽĚƐ ĂƌĞ ŽŶůLJ ĚŝƐƉůĂLJĞĚ ŝŶ ƚŚĞ ƌĞƚĂŝů ĂƌĞĂ͘ ŝƐƉůĂLJ ĐŽŶƚĂŝŶĞƌƐ ĂƌĞ ĂĐĐĞƐƐŝďůĞ ƚŽ ĐƵƐƚŽŵĞƌƐ ǁŝƚŚ ĂƐƐŝƐƚĂŶĐĞ ĨƌŽŵ ĂŶ ĞŵƉůŽLJĞĞ ŽĨ ƚŚĞ ůŝĐĞŶƐĞĞ͘ ŵƉůŽLJĞĞƐ ƌĞŵĂŝŶ ǁŝƚŚ ƚŚĞ
ĐƵƐƚŽŵĞƌĂƚĂůůƚŝŵĞƐ͘
The licensed premises is open between the hours of 6:00 a.m and 10:00 p.m. PST.
WůĂŶƚƐ ĂƌĞ ŶŽƚ ĨůŽǁĞƌŝŶŐ͕ ŝƐ ƐŚŽƌƚĞƌ ĂŶĚ ŶĂƌƌŽǁĞƌ ƚŚĂŶ ϭϴ ŝŶĐŚĞƐ͖ ĂŶĚ ƉůĂŶƚƐ Žƌ ƐĞĞĚƐŽƌŝŐŝŶĂƚĞĚĨƌŽŵĂůŝĐĞŶƐĞĚŶƵƌƐĞƌLJŽƌĂůŝĐĞŶƐĞĚŵŝĐƌŽďƵƐŝŶĞƐƐ͘ ZĞƚĂŝůĞƌĚŽĞƐŶŽƚĂĐĐĞƉƚ͕ƉŽƐƐĞƐƐ͕ŽƌƐĞůůĐĂŶŶĂďŝƐŐŽŽĚƐƚŚĂƚĂƌĞŶŽƚƉĂĐŬĂŐĞĚĂƐƚŚĞLJǁŝůů ďĞƐŽůĚĂƚĨŝŶĂůƐĂůĞ͘ZĞƚĂŝůĞƌĚŽĞƐŶŽƚƉĂĐŬĂŐĞŽƌůĂďĞůĐĂŶŶĂďŝƐŐŽŽĚƐ͘ĂƌĐŽĚĞƐŽƌĂƐŝŵŝůĂƌ ƐƚŝĐŬĞƌƐŵĂLJďĞƵƐĞĚŝŶŝŶǀĞŶƚŽƌLJƚƌĂĐŬŝŶŐ͘dŚĞďĂƌĐŽĚĞŽƌƐƚŝĐŬĞƌĚŽĞƐŶŽƚŽďƐĐƵƌĞĂŶLJ ƌĞƋƵŝƌĞĚůĂďĞůƐ͘
WĂĐŬĂŐĞƐͬĞdžŝƚƉĂĐŬĂŐĞƐĂƌĞƚĂŵƉĞƌͲĞǀŝĚĞŶƚ͕ĐŚŝůĚƌĞƐŝƐƚĂŶƚ͕ĂŶĚƌĞƐĞĂůĂďůĞ͘/ŵŵĂƚƵƌĞ ƉůĂŶƚƐĂƌĞŶŽƚƉůĂĐĞĚŝŶƚĂŵƉĞƌͲĞǀŝĚĞŶƚ͕ĐŚŝůĚƌĞƐŝƐƚĂŶƚ͕ĂŶĚƌĞƐĞĂůĂďůĞƉĂĐŬĂŐŝŶŐ͘ www.hdlcompanies.com
YES
Access granted only after ID is checked and confirmed.
YES
Requirements met.
YES
Cannabis goods displayed in the retail area. Employees assist customers at all times. No open samples on sales floor. Inventory is displayed and stored behind the sales counter.
YES
Cannabis goods sampled have not exceeded their best-by, sell-by, or expiration dates
N/A
Branded merchandise are not sold on the licensed premises.
YES
Live plants were sold on-site at the time.
YES
Returned cannabis goods are not sold after it has been returned by a customer.
YES
Packages sampled compliant with regulations.
YES
Packages/exit packages meet requirements.
N/A
Licensee holds a Retail Storefront license type.
N/A
Delivery services are not being provided to customers.
N/A
Delivery vehicles not found on-site.
N/A
Delivery vehicles not found on-site.
YES
Inventory is reconciled monthly. No significant discrepancies to report at the time.
YES
All emergency exit routes are unlocked are free of obstructions at the time.
CITATIONS COMPLIANT COMMENTS / NOTES
REGULATORY COMPLIANCE
Local Requirements
Inspection Date: Inspected By: Client: State License #: Status:
Legal Business Name/DBA: Local License #: Status:
LOCAL ORDINANCE AND OTHER REGULATIONS
DEFINITIONS
www.hdlcompanies.com
03/11/2024 Michelle Shaw City of Maywood C10-0000478-LIC Active Firehouse Healthcare Industries, Inc. dba Firehouse365 19284 Active 5-45.02(a)
License Required
A valid City license and "CUP" (Conditional Use Permit) are issued under this chapter.
Permits/licenses are current.
YES
5-46.07 (a)(1-6)
Operation Requirements
Licensee is compliant with state and local laws, maintains a record system; equipped with commercial grade locks, security alarms, and a camera system; sufficient odor absorbing ventilation and exhaust system are installed.
Meets requirements.
YES
5-46.07 (e)(1)(2)
Operation Requirements
Licensee is aware to notify the City Manager and the Chief of Police within 24 hours of discovery any of the following: significant discrepancy in inventory, diversion, theft, loss, or criminal activity.
Licensee acknowledges that any/all activity is to be reported to the City within 24 hours of discovery.
YES
5-46.14
Maintenance of Records
Records are produced at the premises in either hard copy or electronic form.
Records available upon request in both hard and electronic copy.
YES
5-46.15
Site Management
Maintenance of the exterior of the premises meets the requirements of this section.
Meets requirements.
YES
OBSERVATIONS / CORRECTIVE ACTIONS
COMPLIANCE NARRATIVE:
It is the responsibility of the licensee to assure their facility is compliant with all state and local regulations. In the event, non-compliant activity is observed, recommendations for corrective action will be made to assist the licensee with making the appropriate changes. Recommendations will be communicated to the licensee subsequent to this report.
For questions or concerns, HdL Compliance Services can be reached at 714-879-5000. www.hdlcompanies.com
The business was operating in accordance with local and state regulations related to premises access control, overall site security, video surveillance, waste management, and inventory tracking. During the examination of the licensee's books and records, the list of employees presented was incomplete and missing names of new employees. The manager explained that one of the persons currently working was in "training" and issued a visitor badge. At the time, this individual was not listed on the employee list, had not completed a background application, and was not issued the required employee identification badge. The manager immediately sent the individual home.
Before the writing of this report, the following information was received: A complete and current list of employees; confirmation that all employees listed on the current"Employee List" have completed a background application; and digital copies of the missing employee's identification badges. The documents requested and presented were available in electronic and hard copy format. Live access to the inventory tracking system (METRC) and video surveillance system were available and viewable upon request.
HdL is making the following recommendation that requires a response demonstrating proof of correction.
RECOMMENDATIONS FOR CORRECTIVE ACTION
1) §15045 SECURITY PERSONNEL
CORRECTIVE ACTION: Licensee should confirm and provide proof to the City that security services and on-site security personnel are present at all times during the hours of operation.
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 20.
DATE: April 24, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: STEVE FOWLER, DIRECTOR OF BUILDING AND PLANNING
SUBJECT: CONSIDERATION OF THE RENEWAL OF A COMMERCIAL CANNABIS
MICROBUSINESS LICENSE FOR MAYWOOD L'CHAIM DBA COOKIES
RECOMMENDATION:
Staff recommends that the City Council approve the application for the commercial cannabis microbusiness license renewal for Maywood L'Chaim ("Cookies"), located at 5815 Maywood Avenue, for a one-year term expiring on May 12, 2025, 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 Ordinance also made any existing commercial cannabis business a non-conforming use subject to the provisions of Section 15.2 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 as set forth in Section 5-46.05 of the Maywood Municipal Code.
This process requires that the City Council determines if the cannabis entities 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 Ordinances. 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 of matching the product with its respective transaction. This measure will detect illegal diversion or the sale of unlicensed (illegal) product, which is central to the verification of the
lawful and complete remittance of the local cannabis tax.
DISCUSSION:
Cookies’ Conditional Use Permit was approved on August 15, 2017. Cookies is a cannabis microbusiness that obtained their business license in January 2018. All sales tax payments have been made.
Cookies currently operates as a microbusiness with four components: retail, cultivation, manufacturing and distribution. They are licensed by the State of California Bureau of Cannabis Control (license #C12-0000233- LIC) as a microbusiness, and their license is valid through August 1, 2024.
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. As a result of the adherence to the regulations, the evaluation of Cookie’s commercial cannabis license renewal application was completed.
Background Check:
Applications for one (1) owners and forty-one (41) employees were submitted and all background checks were subsequently cleared. Cookies is in full compliance with this requirement.
Facility Inspection:
HdL has conducted several on-site inspections since Cookies opened, including a virtual inspection during the Covid-19 pandemic. The latest inspection was conducted on March 11, 2024 with City staff in attendance. City staff and a Compliance Inspector from HdL conducted a facility inspection. The inspection revealed no noncompliance items. As a result, the facility is considered to be in full compliance.
Financial Audit:
Cookies is current on all audits.
In conclusion, based on the inspections, investigations and audits described in this report, Staff has determined that the business is within compliance and that none of the conditions in Section 5-46.05(b) exist and therefore, staff recommends that the City Council approve the renewal of the license.
LEGAL REVIEW:
FISCAL IMPACT:
Cookies pays the 10% Cannabis Business Sales Tax (revenue account 4212) on a quarterly basis to the City.
ATTACHMENT(S)
1. COOKIE 2024 QUARTER 1 - COMPLIANCE REPORT
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General Requirements
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Storage of Inventory
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Premises Diagram
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Modification of Premises or
Operations
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Notification of Theft, Loss,
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General Record Retention
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License Posting Requirement
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Premises Access
Requirements
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Licensee Employee Badge
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Video Surveillance System
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Security Personnel
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Locks
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Alarm System
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General Requirements
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Track and Trace Reporting
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A licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system.
An account within the track and trace system is created and maintained prior to the licensee engaging in any commercial cannabis activity.ůůĂĐƚŝǀŝƚLJĂƌĞĂĐĐƵƌĂƚĞůLJƌĞĐŽƌĚĞĚŝŶƚŚĞƚƌĂĐŬ ĂŶĚƚƌĂĐĞƐLJƐƚĞŵ͘
Cannabis goods are only stored within the licensed premises, ŶŽƚ ƐƚŽƌĞĚ ŽƵƚĚŽŽƌƐ͕ the bathrooms/changing facilities are separated from all storage areas by solid walls (floor to ceiling), and employee break areas are separate and distinct where cannabis is stored. Shipping containers are available as temporary storage space.
All records are retained for at least 7 years from date of creation, records are legible and accurate, and stored in a secured area protected from debris, moisture, contamination, and theft.
The premises diagram includes a brief statement or description of the principal activity in each space, identify limited-access areas, and shows where all cameras are located and assigned a number.
Activities authorized by the license are conducted on the licensed premises. Licensee is the only owner of the license and uses the legal business name on all documents related to commercial cannabis activity.
A Licensee Notification and Request Form (DCC-LIC-028) is submitted to the DCC within 24 hours of discovery of theft, loss, or criminal activity on the licensed premises.
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All security personnel hired or contracted are licensed by the Bureau of Security and Investigative Services, and are at least 21 years of age.
All limited-access areas and all points of entry/exit to the licensed premises can be securely locked using commercial-grade, nonresidential door locks.
A License Notification and Request Form (DCC-LIC-027) is submitted to the DCC requesting for approval before any/all material or substantial changes, modifications, or alterations are made on the licensed premises.
The state license is prominently displayed and viewable by the public; the QR Code can be viewed and scanned from the outside; the QR Code is posted within 3 ft. of any public entrance; and the QR Code can be read by a smartphone from a distance of at least 3 ft.
Identification badges meeting the requirements of this section are worn by employees on the licensed premises at all times.
Cameras are permanently mounted in a fixed location; limited-access areas, security rooms, DVR room, exits/entrances are recorded; and recordings are kept a minimum of 90-days.
All cannabis and cannabis products on the licensed premises are assigned a plant or package tag, except for harvested plants that are being dried, cured, graded, or trimmed, and recorded in the track and trace system. Activities are recorded in the track and trace system within 24 hours of occurrence.
A sign-in/sign-out procedure to establish identification of visitors is implemented. An individual not employed by the licensee is escorted at all times. A record of who entered the limited-access areas is accurately maintained and available upon request. dŚĞŝŶƐƉĞĐƚŝŽŶǁĂƐĚĞƐŝŐŶĞĚƚŽŵĞĂƐƵƌĞĐŽŵƉůŝĂŶĐĞƌĞůĂƚĞĚƚŽƐŝƚĞƐĞĐƵƌŝƚLJ͕ŝŶǀĞŶƚŽƌLJĐŽŶƚƌŽů͕ĂĐĐĞƐƐĐŽŶƚƌŽů͕ƌĞĐŽƌĚŬĞĞƉŝŶŐƉƌŽĐĞĚƵƌĞƐŝŶĂĚĚŝƚŝŽŶƚŽŽƚŚĞƌƐƚĂƚĞĂŶĚůŽĐĂůƉƵďůŝĐŚĞĂůƚŚĂŶĚƐĂĨĞƚLJ ƌĞƋƵŝƌĞŵĞŶƚƐ͘&ŝŶĚŝŶŐƐĚŽŶŽƚƌĞƉƌĞƐĞŶƚĂĨŝŶĂůĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨĐŽŵƉůŝĂŶĐĞ͘WůĞĂƐĞŶŽƚĞƚŚĂƚĂůůĞƉĂƌƚŵĞŶƚŽĨĂŶŶĂďŝƐŽŶƚƌŽů;ͿĚĞĨŝŶŝƚŝŽŶƐůŝƐƚĞĚďĞůŽǁŚĂǀĞďĞĞŶƐƵŵŵĂƌŝnjĞĚ͘^ƚĂƚĞ ƌĞŐƵůĂƚŝŽŶƐŝŶƚŚĞŝƌĞŶƚŝƌĞƚLJŵĂLJďĞĨŽƵŶĚĂƚ͗ŚƚƚƉƐ͗ͬͬĐĂŶŶĂďŝƐ͘ĐĂ͘ŐŽǀͬĐĂŶŶĂďŝƐͲůĂǁƐͬĚĐĐͲƌĞŐƵůĂƚŝŽŶƐ
03/11/2024 Michelle Shaw City of Maywood YES
Compliance Microbusiness - Type 12 Calvin Ko (323) 562-5723 Maywood L'Chaim dba Cookies C12-0000233-LIC (Retailer-T10/Distributor/Cultivator) 5815 Maywood Ave., Maywood, CA 90270 08/01/2024 Active
Edwin Movagharian (Licensee/Owner) 16007363
12/31/2024 Active
■
Licensee is conducting Retailer, Distributor, and Cultivator activities authorized by their state and local licenses. YES
Secured cannabis storage is located within the facility and not outdoors. No cannabis inventory found on-site. YES
Premises Diagram current and reflected accurate information. No changes made from the last inspection. YES
No modifications made from the last inspection.
N/A
N/A
Nothing to report.
YES
Requested documents retrieved from the business office. Records are legible and kept in a secured and protected area.
YES
State and local licenses prominently posted.
YES
Sign-in/sign-out sheet meet requirement.
YES
All employees are properly badged.
YES
Before the writing of this report, the Licensee provided a letter from the monitoring company that the system is capable of 90-day video retention.
YES
Two (2) security guards on-site during business hours.
YES
Commercial grade locks on all perimeter doors.
YES
Security alarm contract current. Alarm system monitored 24/7.
YES
METRC account is used to record all cannabis activity.
YES
Inventory properly tagged. METRC inventory counts are accurate. Activities are recorded in METRC within 24 hours.
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ΑϭϱϯϬϬ
Distribution Activities
ΑϭϱϯϬϭ;ďͿ
Storage Services
ΑϭϱϯϬϮ;ĂͿ;ďͿ
Storage of Batches fordĞƐƚŝŶŐ
ΑϭϱϯϬϯ;ĂͿ;ďͿ
Packaging, Labeling, and
ZŽůůŝŶŐ
ΑϭϱϯϬϱ
Testing Sample
ΑϭϱϯϬϲ;ĐͿ
Regulatory Compliance
Testing Results
ΑϭϱϯϬϴ;ĂͿ
Insurance Requirement
ΑϭϱϯϬϵ;ĂͿ
Inventory Accounting
Αϭϱϯϭϭ;ĨͿ;ŐͿ
Required for the
Transportation of Cannabis
ΑϭϱϯϭϮ;ĂͿ
Required Transport Vehicle
Information
Αϭϱϯϭϰ;ĂͿ
Shipping Manifest
Αϭϳϭϭϳ;ĐͿ
License Constraints
ΑϭϳϮϬϲ͘ϭ;ĂͿ
Certification of Closed-Loop
Systems
ΑϭϳϮϬϴ;ĂͿ
Quality Control (QC) Program
ΑϭϳϮϭϯ;ĂͿ;ϭͿ;ϮͿ;ϯͿ;ďͿ
Manufacturing Procedures
ΑϭϳϮϭϲ;ďͿ;ϭϭͿ
Batch Production Record
ΑϭϳϮϭϳ;ĂͿ
Standard Operating
Procedures (SOP)
ΑϭϳϮϭϴ;ďͿ
Inventory Control
ΑϭϳϮϮϭ;ĂͿ;ĐͿ
Weighing Devices and
Weighmasters
ΑϭϳϮϮϯ;ďͿ;ĐͿ
Waste Management
The closed-loop system is commercially manufactured and bear a permanently affixed and visible serial number.
All inventory is accounted for andƚŚĞ information is provided upon request.
Only cannabis and cannabis products, cannabis accessories, and licensees’ branded merchandise or promotional materials are distributed by the licensee.
Distributor provides storage services to other licensees for cannabis goods packaged as they will be sold at retail, cannabis accessories, and licensees’ branded merchandise or promotional materials only.
Cannabis and cannabis products are transported inside of a vehicle/trailer and not be visible from the outside; and products are in a fully enclosed, windowless, locked trailer or trunk that cannot be accessed from inside the vehicle.
Copies of the certificate of ownership or registration card issued by the CA DMV, the year, make, model, license plate number, and Vehicle Identification Number in writing, and proof of insurance is provided upon request.
A shipping manifest is generated through the track and trace system prior to transporting cannabis or cannabis products.
The batch production records documents the UID and the batch or lot number of the finished batch of cannabis product and the UIDs of all cannabis or cannabis products used in the batch.
The Quality Control (QC) program implemented ensures that cannabis and cannabis products are not adulterated or misbranded.
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Copies of the required Certificate of Analysis (COA) are available electronically.
Commercial general liability insurance is in the aggregate amount of $2M (no less) and $1M (no less) for each loss.
All written SOPs are easily accessible to onsite personnel.
ŵƉůŽLJĞĞƐŽĨƚŚĞůŝĐĞŶƐĞĚŝƐƚƌŝďƵƚŽƌŝƐƉƌĞƐĞŶƚƚŽŽďƐĞƌǀĞƚŚĞůĂďŽƌĂƚŽƌLJĞŵƉůŽLJĞĞŽďƚĂŝŶ ƚŚĞƐĂŵƉůĞ͘The sampling are video-recorded and the recordings are maintained for 90 calendar days͘
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On-hand inventory of cannabis and cannabis products at the licensed premises are reconciled with the records in the track and trace system at least once every thirty (30) calendar days.
Weighing devices approved, tested, and sealed in accordance with the requirements in Business and Professions Code are in use on the licensed premises. Proof of a current weighmaster certificate is posted onsite.
ǁƌŝƚƚĞŶĂŶŶĂďŝƐtĂƐƚĞDĂŶĂŐĞŵĞŶƚWůĂŶĚĞƐĐƌŝďŝŶŐŵĞƚŚŽĚƐďLJǁŚŝĐŚĐĂŶŶĂďŝƐǁĂƐƚĞ ǁŝůů ďĞ ĚŝƐƉŽƐĞĚ ŽĨ͕ ĂƐ ĂƉƉůŝĐĂďůĞ ƚŽ ƚŚĞ ůŝĐĞŶƐĞĞΖƐ ĂĐƚŝǀŝƚŝĞƐ͕ ŝƐ ŝŵƉůĞŵĞŶƚĞĚ͘ ŶLJͬĂůů ĐĂŶŶĂďŝƐ ǁĂƐƚĞ ŝƐ ƐƚŽƌĞĚ ŝŶ Ă ƐĞĐƵƌĞĚ ǁĂƐƚĞ ƌĞĐĞƉƚĂĐůĞ Žƌ ƐĞĐƵƌĞĚ ĂƌĞĂ ŽŶ ƚŚĞ ůŝĐĞŶƐĞĚ ƉƌĞŵŝƐĞƐƵŶƚŝůƚŚĞƚŝŵĞŽĨĚŝƐƉŽƐĂů͘
Cannabinoid concentrates and extracts used are manufactured or processed from cannabis obtained from a licensed cannabis cultivator.
All batches of cannabis or cannabis products are stored separately and distinctly from other batches of cannabis or cannabis products on the licensed premises.ůůďĂƚĐŚĞƐŚĂǀĞƚŚĞ ƌĞƋƵŝƌĞĚůĂďĞůƉĞƌƚŚŝƐƐĞĐƚŝŽŶ͘
ůůƉĂĐŬĂŐĞƐŽĨĐĂŶŶĂďŝƐŝŶƚŚĞĨŽƌŵŽĨĚƌŝĞĚĨůŽǁĞƌ͕ŝŶĐůƵĚŝŶŐƉƌĞͲƌŽůůƐŝƐĐŽŵƉůŝĂŶƚǁŝƚŚƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐŽĨŚĂƉƚĞƌϭϭ;>ĂďĞůŝŶŐĂŶĚWĂĐŬĂŐŝŶŐͿ͘ůŝĐĞŶƐĞĚŝƐƚƌŝďƵƚŽƌŵĂLJƌŽůůƉƌĞͲ ƌŽůůƐƚŚĂƚĐŽŶƐŝƐƚĞdžĐůƵƐŝǀĞůLJŽĨĂŶLJĐŽŵďŝŶĂƚŝŽŶŽĨĨůŽǁĞƌ͕ƐŚĂŬĞ͕ůĞĂĨ͕ŽƌŬŝĞĨ͘ The following procedures are established and implemented: a Product Quality Plan, Master Manufacturing Protocols, and Batch Production Records. All manufacturing records and procedures are in writing.
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www.hdlcompanies.com Page 2 of 6
YES
Licensee is only conducting commercial cannabis activity authorized by their state and local license.
YES
No storage services offered to other licensees.
YES
Meets requirements.
YES
Meets requirements.
YES
Licensee explained their sampling process.
YES
Records available upon request.
YES
Coverage amounts meet requirements.
YES
Inventory is accounted for and records provided upon request.
YES
Meets requirements.
YES
Meets requirements. All information is current.
YES
Shipping manifest document sampled compliant with regulation.
No Manufacturer license issued.
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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General Cultivation
Requirements
ΑϭϲϯϬϬ;ďͿ
Cultivation Requirements
ΑϭϲϯϬϲ;ďͿ;ϮͿĂŶĚ;ĚͿ
Generator Requirements
ΑϭϲϯϬϳ;ďͿ;ϮͿ
Pesticide Use
ΑϭϲϯϬϴ;ĂͿ;ϭͿ;ϮͿ
Canopy Requirement
ΑϭϲϯϬϵ;ĂͿ
Cultivation Plan
Requirements
ΑϭϲϯϭϬ;ĂͿ;ϮͿ
Pest Management Plan
ΑϭϱϱϬϬ;ďͿĂŶĚ;ĐͿ
Microbusiness
ΑϭϱϳϬϭ;ĂͿ;ĐͿĂŶĚ;ĚͿ
General Laboratory License
Requirements
ΑϭϱϳϬϰ;ĂͿ;ďͿ
Sampling Standard Operating
Procedures
ΑϭϱϳϬϲ;ĐͿ;ĚͿ
Chain of Custody (COC)
ΑϭϱϳϬϵ
Laboratory Transportation of
Product Samples
ΑϭϱϳϭϬ;ďͿ
Laboratory Receipt of
Samples obtained from a
Distributor or Microbusiness
Αϭϱϳϭϭ;ďͿ
Laboratory Analyses
Standard Operating
Procedures ("SOP")
ΑϭϱϳϮϲ;ĂͿ;ĐͿ
Certificate of Analysis (COA)
ΑϭϱϳϮϴ
Post Testing Sample
Retention
ΑϭϱϳϮϵ;ĂͿ
Laboratory Quality Assurance
(LQA)
Αϭϱϳϯϱ;ĂͿ
Laboratory Audits
Αϭϱϳϯϲ;ďͿ
Employee Qualifications
Pest Management protocols include chemical, biological, and cultural methods, used to prevent and control pests on the cultivation site.
Each canopy is marked with clearly identifiable physical boundaries and of sufficient size to contain plants in their entirety at any point in time.
The Cultivation Plan includes a Premises Diagram, a Cannabis Waste Management Plan, and a Pest Management Plan.
All applicable pesticide application and storage protocols are compliant with regulations.
Chemicals are stored in a secured building or shed to prevent access by wildlife.
The licensed laboratory employee who receives the sample has completed the COC to include date, print, and sign their name on the accompanying sample COC.
The reserve sample is kept at a minimum for 45 business days after the analyses, after which time it is destroyed and denatured to the point the material is rendered unrecognizable and unusable.
The licensed laboratory has a LQA program to assure the reliability and validity of the analytical data produced by the laboratory.
An internal audit is conducted at least once per year or in accordance with the ISO/IEC 17025 accrediting body’s requirement.
The date, time, and the names and signatures of persons involved are recorded on the COC form. The COC form for a change of custody between licensees has not been altered.
A Certificate of Analysis (COA) is generated for each sample analyzed. A copy of the COA is recorded into the track and trace system and simultaneously uploaded to the DCC via email with a file name "METRC UID Number and Test Sample ID" and "Passed/Fail" in the heading.
Products are stored in a secure, fully enclosed trunk, or compartment within the interior of the vehicle. The vehicle/trailer has an alarm system and owned or leased by the licensee.
Proof of valid vehicle registration and current insurance is available upon request.
All Standard Operation Procedures (SOPs) are kept at the licensed premises, each SOP is accessible to laboratory employees during operating hours, and made available upon request.
An employee training program is developed and implemented to ensure competency of laboratory employees for their assigned functions.
ůůƉůĂŶƚƐŽƌƉŽƌƚŝŽŶƐŽĨĂƉůĂŶƚƵƐĞĚĨŽƌƐĞĞĚƉƌŽĚƵĐƚŝŽŶĂƌĞƚĂŐŐĞĚǁŝƚŚĂƉůĂŶƚƚĂŐ͘ The licensed laboratory has a sampling standard operating procedure (SOP) that describes the laboratory’s method for obtaining representative samples of cannabis or cannabis products. The SOP is accessible to the sampler during sampling. ŚĂƉƚĞƌϲ͘d
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ISO/IEC 17025 certificate of accreditation is available upon request. ůů ƌĞĐŽƌĚƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ƚŚĞ /^Kͬ/
ϭϳϬϮϱ ĂĐĐƌĞĚŝƚĂƚŝŽŶ ŝƐ ƌĞƚĂŝŶĞĚ͘ A separate and distinct separation of laboratory testing activities and records regulated by this division is maintained.
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The microbusiness license all commercial cannabis activities applied for. Three (3) of the following commercial cannabis activities are performed on the licensed premises: cultivation, manufacturing, distribution, and retail. ůůƚƌĂŶƐĨĞƌƐŽĨĐĂŶŶĂďŝƐĂŶĚŶŽŶŵĂŶƵĨĂĐƚƵƌĞĚĐĂŶŶĂďŝƐƉƌŽĚƵĐƚĨƌŽŵĂůŝĐĞŶƐĞĚĐƵůƚŝǀĂƚŝŽŶ ƉƌĞŵŝƐĞƐŝƐĐŽŶĚƵĐƚĞĚďLJĂĚŝƐƚƌŝďƵƚŽƌůŝĐĞŶƐĞĚďLJƚŚĞĞƉĂƌƚŵĞŶƚ͘ All generators on the licensed premises are equipped with non-resettable hour-meters. For portable or stationary engines, a Permit to Operate or other proof of engine registration has been obtained from the Local Air District with jurisdiction over the licensed premises.
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YES
Meets requirements.
YES
UID tags are used.
N/A
Generators are not required by the City.
Licensee does not use pesticides.
N/A
YES
Canopy areas sufficient in size for mature plants.
YES
Meets requirements.
YES
Pest management protocols in place.
YES
Licensee holds Distributor, Retailer, Cultivator (less than 10K sq ft) licenses.
N/A
No Laboratory Testing licensed issued.
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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Customer Access to Retail
Area
ΑϭϱϰϬϯ
Hours of Operation
ΑϭϱϰϬϯ͘ϭ
Requirements While Not
Open for Business
ΑϭϱϰϬϱ;ĂͿ;ďͿ
Cannabis Goods Display
ΑϭϱϰϬϲ;ĂͿ;ďͿCannabis
Goods for Sale
ΑϭϱϰϬϳ
Sale of Non-Cannabis Goods
ΑϭϱϰϬϴ;ĂͿ;ϭͿ;ϮͿ
Sale of Live Plants and Seeds
ΑϭϱϰϭϬ
Customer Return of Cannabis
Goods
Αϭϱϰϭϯ;ďͿ;ĐͿ
Packaging/Exit Packaging
Αϭϱϰϭϰ
Non-Storefront Retailer
Αϭϱϰϭϱ
Delivery Employees
Αϭϱϰϭϳ;ĂͿ;ďͿ;ĚͿ
Delivery Vehicle
Requirements
ΑϭϱϰϮϰ;ĂͿ;ďͿ;ĐͿ
Inventory Reconciliation
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Design and Construction
Requirements for Exit Routes
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Egress and Evacuation: Exit routes are permanent. A minimum of two (2) exit routes in the workplace are in place and leads directly outside, to a street, or open space. The doors swing out in the direction of exit travel. Exit doors are unlocked. Employees are able to open the door from the inside at all times without keys, tools, or special knowledge.
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Cannabis goods are only displayed in the retail area. Display containers are accessible to customers with assistance from an employee of the licensee. Employees remain with the customer at all times.
Plants are not flowering, is shorter and narrower than 18 inches; and plants or seeds originated from a licensed nursery or a licensed microbusiness.
Cannabis goods are received from a licensed retailer or licensed microbusiness authorized to engage in distribution. The cannabis goods have not exceeded their best-by, sell-by, or expiration date.
The age of an individual is confirmed prior to granting him/her access to the licensed premises; one (1) employee is physically present in the retail area at all times; and all sales are done within the retail area of the licensed premises.
The licensed premises is open between the hours of 6:00 a.m. and 10:00 p.m. PST.
The licensed premises is securely locked with commercial-grade, nonresidential door locks, has an active alarm, and only employees and authorized individuals are allowed access.
Cannabis accessories and branded merchandise of any licensee are sold. Prepackaged, noncannabis-infused, non-alcoholic food and beverages are consumed in the designated consumption area on the licensed premises and such activities are allowed by the local jurisdiction.
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Vehicles are enclosed and unmarked; cannabis goods are not visible to the public and in a "secured area within the vehicle"; vehicle is outfitted with a GPS device owned by the Licensee, capable of 90-days recording retention.
The physical inventory is all accounted for, is consistent with the licensee's inventory records, and made available upon request.
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Packages/exit packages are tamper-evident, child resistant, and resealable. Immature plants are not placed in tamper-evident, child resistant, and resealable packaging.
Delivery employee is at least 21 years of age. A delivery employee provides a copy of the retail license, a copy of the QR Code Certificate, and their employee ID badge to a delivery customer upon request. The retailer maintains an accurate list of delivery employees and the list is available upon request.
Defective manufactured cannabis products are destroyed or returned to the licensed distributor from whom the cannabis goods were obtained.
The non-storefront retailer complies with all the requirements applicable to retailer licensees, except for those provisions related to public access to the licensed premises and the retail area. The licensed premises is closed to the public. www.hdlcompanies.com Page 4 of 6
Access granted only after identification is checked and confirmed by security.
YES
Hours of operation are within state requirements.
YES
Meets requirements.
YES
Display containers accessible to customers, securely tethered, with assistance from employees of the licensee. YES
METRC manifest checked. Cannabis inventory delivered to the licensee by a licensed distributor. YES
Branded merchandise and accessories are sold on the licensed premises.
YES
No plants or seeds sold on-site.
YES
Meets requirements.
YES
Exit packages are state compliant.
YES
Not applicable to this licensed premises. Licensee holds a Storefront Retailer license. N/A
Meets requirements.
YES
Meets requirements.
YES
Before the writing of this report, the licensee was able to show proof that inventory has been reconciled. YES
YES
All emergency exit routes are unlocked are free of obstructions at the time.
CITATIONS COMPLIANT COMMENTS / NOTES
REGULATORY COMPLIANCE
Local Requirements
Inspection Date: Inspected By: Client: State License #: Status:
Legal Business Name/DBA: Local License #: Status:
LOCAL ORDINANCE AND OTHER REGULATIONS
DEFINITIONS
www.hdlcompanies.com
03/11/2024 Michelle Shaw City of Maywood C12-0000233-LIC Active Maywood L'Chaim dba Cookies 16007363 Active
5-45.02(a)
License Required
A valid City license and "CUP" (Conditional Use Permit) are issued under this chapter.
Permits/licenses are current.
YES
5-46.07 (a)(1-6)
Operation Requirements
Licensee is compliant with state and local laws, maintains a record system; equipped with commercial grade locks, security alarms, and a camera system; sufficient odor absorbing ventilation and exhaust system are installed.
Meets requirements.
YES
5-46.07 (e)(1)(2)
Operation Requirements
Licensee is aware to notify the City Manager and the Chief of Police within 24 hours of discovery any of the following: significant discrepancy in inventory, diversion, theft, loss, or criminal activity.
Licensee acknowledges that any/all activity is to be reported to the City within 24 hours of discovery.
YES
5-46.14
Maintenance of Records
Records are produced at the premises in either hard copy or electronic form.
Records available upon request in both hard and electronic copy.
YES
5-46.15
Site Management
Maintenance of the exterior of the premises meets the requirements of this section.
Meets requirements.
YES
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The business was operating in compliance with local and state regulations related to premises access control, overall site security, video surveillance, waste management, and inventory tracking. The documents requested and presented were available in electronic and hard copy format. Live access to the inventory tracking system (METRC) and video surveillance system were available and viewable upon request.
The Licensee is COMPLIANT with all state regulations and local ordinances examined at this time. No additional observations or corrective actions were discussed.
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 21.
DATE: April 24, 2024
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: STEVE FOWLER, DIRECTOR OF BUILDING AND PLANNING
SUBJECT: CONSIDERATION OF THE RENEWAL OF A COMMERCIAL CANNABIS
MICROBUSINESS LICENSE FOR SINSEMILLA INDO GROUP, INCORPORATED DBA
OG NATION
RECOMMENDATION:
Staff recommends that the City Council approve the application for the renewal of a commercial cannabis microbusiness license for Sinsemilla Indo Group, Incorporated dba OG Nation located at 6142 Walker Avenue, for a one-year term expiring on May 12, 2025, 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 Ordinance also made any existing commercial cannabis business a non-conforming use subject to the provisions of Section 15.2 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 entities 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 of matching the product with its respective transaction. This measure
will detect illegal diversion or the sale of unlicensed (illegal) product, which is central to the verification of the lawful and complete remittance of the local cannabis tax.
DISCUSSION:
OG Nation's Conditional Use Permit was approved on December 19, 2017. OG Nation is a cannabis microbusiness that obtained their business license in December 2018. An audit has been conducted and sales tax payments are up to date.
OG Nation currently operates as a microbusiness with four components: retail, cultivation, manufacturing and distribution. They are licensed by the State of California Bureau of Cannabis Control (license #C12-0000238- LIC) as a Type 12 Microbusiness: Storefront retail, Distribution, and Manufacturer Packaging only and their license is valid through August 12, 2024.
Renewals per the ordinance are to be renewed annually. We started the renewal process last year and continued with the quarterly inspections and annual audits. As a result of the adherence to the regulations, the evaluation of OG Nation's commercial cannabis license renewal application was completed.
Background Check:
Applications for one (1) owner and thirty-six (36) employees were submitted and all background checks were subsequently cleared. OG Nation is in full compliance with this requirement.
Facility Inspection:
HdL has conducted several on-site inspections since OG Nation opened, including a virtual inspection during the Covid-19 pandemic. The latest inspection was conducted on March 11, 2024 with City staff in attendance.
City staff and a Compliance Inspector from HdL conducted a facility inspection. The inspection revealed two non-compliances; but have since been resolved. The items are as follows:
i. Weighing devices did not have valid certification. At the time of the inspection, OG Nation was not able to produce the certificate for their weighing devices. Since the inspection, staff has been provided with a County of Los Angeles Weights and Measures Device Registration Certificate. The certificate is valid from December 15, 2023 to December 13, 2024.
ii. At the time of inspection, OG Nation was not able to produce a copy of standard operating procedures (SOP) detailing how the business renders its product waste as unusable, unrecognizable, and disposed of within the licensed premises. Since the inspection, OG Nation has provided an electronic copy of their SOP, which has been deemed in compliance.
Financial Audit:
OG Nation is current on all audits.
In conclusion, based on the inspections, investigations and audits described in this report, staff has determined that the business is working with the City to be within compliance of the conditions in Section 5-45-05(b). Staff recommends that the City Council approve the renewal of the license.
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
OG Nation's dispensary pays the 10% Cannabis Business Sales Tax (Revenue Account 4212) on a quarterly basis to the City.
ATTACHMENT(S)
1. OG NATION 2024 QUARTER 1 - COMPLIANCE REPORT
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General Requirements
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Storage of Inventory
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Premises Diagram
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Modification of Premises or
Operations
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Notification of Theft, Loss,
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General Record Retention
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License Posting Requirement
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Premises Access
Requirements
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Licensee Employee Badge
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Video Surveillance System
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Security Personnel
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Locks
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Alarm System
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General Requirements
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Track and Trace Reporting
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A licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system.
An account within the track and trace system is created and maintained prior to the licensee engaging in any commercial cannabis activity.ůůĂĐƚŝǀŝƚLJĂƌĞĂĐĐƵƌĂƚĞůLJƌĞĐŽƌĚĞĚŝŶƚŚĞƚƌĂĐŬ ĂŶĚƚƌĂĐĞƐLJƐƚĞŵ͘
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All records are retained for at least 7 years from date of creation, records are legible and accurate, and stored in a secured area protected from debris, moisture, contamination, and theft.
The premises diagram includes a brief statement or description of the principal activity in each space, identify limited-access areas, and shows where all cameras are located and assigned a number.
Activities authorized by the license are conducted on the licensed premises. Licensee is the only owner of the license and uses the legal business name on all documents related to commercial cannabis activity.
A Licensee Notification and Request Form (DCC-LIC-028) is submitted to the DCC within 24 hours of discovery of theft, loss, or criminal activity on the licensed premises.
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All security personnel hired or contracted are licensed by the Bureau of Security and Investigative Services, and are at least 21 years of age.
All limited-access areas and all points of entry/exit to the licensed premises can be securely locked using commercial-grade, nonresidential door locks.
A License Notification and Request Form (DCC-LIC-027) is submitted to the DCC requesting for approval before any/all material or substantial changes, modifications, or alterations are made on the licensed premises.
The state license is prominently displayed and viewable by the public; the QR Code can be viewed and scanned from the outside; the QR Code is posted within 3 ft. of any public entrance; and the QR Code can be read by a smartphone from a distance of at least 3 ft.
Identification badges meeting the requirements of this section are worn by employees on the licensed premises at all times.
Cameras are permanently mounted in a fixed location; limited-access areas, security rooms, DVR room, exits/entrances are recorded; and recordings are kept a minimum of 90-days.
All cannabis and cannabis products on the licensed premises are assigned a plant or package tag, except for harvested plants that are being dried, cured, graded, or trimmed, and recorded in the track and trace system. Activities are recorded in the track and trace system within 24 hours of occurrence.
A sign-in/sign-out procedure to establish identification of visitors is implemented. An individual not employed by the licensee is escorted at all times. A record of who entered the limited-access areas is accurately maintained and available upon request. dŚĞŝŶƐƉĞĐƚŝŽŶǁĂƐĚĞƐŝŐŶĞĚƚŽŵĞĂƐƵƌĞĐŽŵƉůŝĂŶĐĞƌĞůĂƚĞĚƚŽƐŝƚĞƐĞĐƵƌŝƚLJ͕ŝŶǀĞŶƚŽƌLJĐŽŶƚƌŽů͕ĂĐĐĞƐƐĐŽŶƚƌŽů͕ƌĞĐŽƌĚŬĞĞƉŝŶŐƉƌŽĐĞĚƵƌĞƐŝŶĂĚĚŝƚŝŽŶƚŽŽƚŚĞƌƐƚĂƚĞĂŶĚůŽĐĂůƉƵďůŝĐŚĞĂůƚŚĂŶĚƐĂĨĞƚLJ ƌĞƋƵŝƌĞŵĞŶƚƐ͘&ŝŶĚŝŶŐƐĚŽŶŽƚƌĞƉƌĞƐĞŶƚĂĨŝŶĂůĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨĐŽŵƉůŝĂŶĐĞ͘WůĞĂƐĞŶŽƚĞƚŚĂƚĂůůĞƉĂƌƚŵĞŶƚŽĨĂŶŶĂďŝƐŽŶƚƌŽů;ͿĚĞĨŝŶŝƚŝŽŶƐůŝƐƚĞĚďĞůŽǁŚĂǀĞďĞĞŶƐƵŵŵĂƌŝnjĞĚ͘^ƚĂƚĞ ƌĞŐƵůĂƚŝŽŶƐŝŶƚŚĞŝƌĞŶƚŝƌĞƚLJŵĂLJďĞĨŽƵŶĚĂƚ͗ŚƚƚƉƐ͗ͬͬĐĂŶŶĂďŝƐ͘ĐĂ͘ŐŽǀͬĐĂŶŶĂďŝƐͲůĂǁƐͬĚĐĐͲƌĞŐƵůĂƚŝŽŶƐ 03/11/2024 Michelle Shaw City of Maywood YES
Compliance Microbusiness - Type 12 Calvin Ko (323) 562-5723 Sinsemilla Indo Group dba OG Nation C12-0000238-LIC (Retailer-T10/Distributor/Manufacturer-T6) 6142 Walker Ave., Maywood, CA 90270 08/01/2024 Active
Sigrid Lopez (Licensee/Owner) 16008494
12/31/2023 Active; Pending Renewal
■
Licensee is conducting Retailer, Distributor, and Manufacturer activities authorized by their state and local licenses. YES
Secured cannabis storage is located within the facility and not outdoors. No cannabis inventory found on-site. YES
Premises Diagram current and reflect accurate information. No changes made from the last inspection. YES
No modifications made from the last inspection.
N/A
N/A
Nothing to report.
YES
Requested documents retrieved form the business office. Records are legible and kept in a secured and protected area.
YES
State and Local licenses prominently posted.
YES
Sign-in/sign-out sheet meet requirements.
YES
All employees are properly badged.
YES
Camera coverage is good. Licensee demonstrated compliance with 90-day recording requirements.
YES
Two (2) security guards on-site during business hours.
YES
Commercial grade locks on all perimeter doors.
YES
Security alarm contract is current. Alarm system is monitored 24/7.
YES
METRC account is used to record all cannabis activity.
YES
Inventory is properly tagged. METRC inventory counts are accurate. Activities are recorded in METRC within 24 hours.
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Distribution Activities
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Storage Services
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Storage of Batches fordĞƐƚŝŶŐ
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Testing Sample
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Regulatory Compliance
Testing Results
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Insurance Requirement
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Inventory Accounting
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Required for the
Transportation of Cannabis
ΑϭϱϯϭϮ;ĂͿ
Required Transport Vehicle
Information
Αϭϱϯϭϰ;ĂͿ
Shipping Manifest
Αϭϳϭϭϳ;ĐͿ
License Constraints
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Certification of Closed-Loop
Systems
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Quality Control (QC) Program
ΑϭϳϮϭϯ;ĂͿ;ϭͿ;ϮͿ;ϯͿ;ďͿ
Manufacturing Procedures
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Batch Production Record
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Standard Operating
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Inventory Control
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Weighing Devices and
Weighmasters
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Waste Management
The closed-loop system is commercially manufactured and bear a permanently affixed and visible serial number.
All inventory is accounted for andƚŚĞ information is provided upon request.
Only cannabis and cannabis products, cannabis accessories, and licensees’ branded merchandise or promotional materials are distributed by the licensee.
Distributor provides storage services to other licensees for cannabis goods packaged as they will be sold at retail, cannabis accessories, and licensees’ branded merchandise or promotional materials only.
Cannabis and cannabis products are transported inside of a vehicle/trailer and not be visible from the outside; and products are in a fully enclosed, windowless, locked trailer or trunk that cannot be accessed from inside the vehicle.
Copies of the certificate of ownership or registration card issued by the CA DMV, the year, make, model, license plate number, and Vehicle Identification Number in writing, and proof of insurance is provided upon request.
A shipping manifest is generated through the track and trace system prior to transporting cannabis or cannabis products.
The batch production records documents the UID and the batch or lot number of the finished batch of cannabis product and the UIDs of all cannabis or cannabis products used in the batch.
The Quality Control (QC) program implemented ensures that cannabis and cannabis products are not adulterated or misbranded.
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Copies of the required Certificate of Analysis (COA) are available electronically.
Commercial general liability insurance is in the aggregate amount of $2M (no less) and $1M (no less) for each loss.
All written SOPs are easily accessible to onsite personnel.
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On-hand inventory of cannabis and cannabis products at the licensed premises are reconciled with the records in the track and trace system at least once every thirty (30) calendar days.
Weighing devices approved, tested, and sealed in accordance with the requirements in Business and Professions Code are in use on the licensed premises. Proof of a current weighmaster certificate is posted onsite.
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Cannabinoid concentrates and extracts used are manufactured or processed from cannabis obtained from a licensed cannabis cultivator.
All batches of cannabis or cannabis products are stored separately and distinctly from other batches of cannabis or cannabis products on the licensed premises.ůůďĂƚĐŚĞƐŚĂǀĞƚŚĞ ƌĞƋƵŝƌĞĚůĂďĞůƉĞƌƚŚŝƐƐĞĐƚŝŽŶ͘
ůůƉĂĐŬĂŐĞƐŽĨĐĂŶŶĂďŝƐŝŶƚŚĞĨŽƌŵŽĨĚƌŝĞĚĨůŽǁĞƌ͕ŝŶĐůƵĚŝŶŐƉƌĞͲƌŽůůƐŝƐĐŽŵƉůŝĂŶƚǁŝƚŚƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐŽĨŚĂƉƚĞƌϭϭ;>ĂďĞůŝŶŐĂŶĚWĂĐŬĂŐŝŶŐͿ͘ůŝĐĞŶƐĞĚŝƐƚƌŝďƵƚŽƌŵĂLJƌŽůůƉƌĞͲ ƌŽůůƐƚŚĂƚĐŽŶƐŝƐƚĞdžĐůƵƐŝǀĞůLJŽĨĂŶLJĐŽŵďŝŶĂƚŝŽŶŽĨĨůŽǁĞƌ͕ƐŚĂŬĞ͕ůĞĂĨ͕ŽƌŬŝĞĨ͘ The following procedures are established and implemented: a Product Quality Plan, Master Manufacturing Protocols, and Batch Production Records. All manufacturing records and procedures are in writing.
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YES
Licensee is only conducting commercial cannabis activity authorized by their state and local license.
YES
No storage services offered to other licensees.
YES
Secured storage available within the licensed premises.
YES
Meets requirements.
YES
Licensee explained their sampling procedures.
YES
Records available upon request.
YES
Coverage amounts meet requirements.
YES
Inventory counts are accurate.
YES
Meets requirements.
YES
One (1) vehicle inspected. Meets requirements.
YES
Shipping Manifest document sample compliant. Meets requirements.
Meets requirements.
YES
Manufacturer Type 6 (Non-volatile) license issued.
N/A
QC Program implemented.
YES
Records easily accessible by employees and available upon request.
YES
Licensee explained their procedures related to maintaining records related to batch production. YES
SOP's easily accessible by employees.
YES
N/A
Inventory reconciled monthly.
NO
The weighing device (scale) on-site was affixed with a certification seal with a date of 5/2019. The Weighmaster License posted reflected a license of 6/1/2021 - 6/1/2022.
NO
Waste was secured however, it was not rendered as unrecognizable. Glass containers were labeled with cannabis and glass was not destroyed or stickers removed.
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General Cultivation
Requirements
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Cultivation Requirements
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Generator Requirements
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Pesticide Use
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Canopy Requirement
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Cultivation Plan
Requirements
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Pest Management Plan
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Microbusiness
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General Laboratory License
Requirements
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Sampling Standard Operating
Procedures
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Chain of Custody (COC)
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Laboratory Transportation of
Product Samples
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Laboratory Receipt of
Samples obtained from a
Distributor or Microbusiness
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Laboratory Analyses
Standard Operating
Procedures ("SOP")
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Certificate of Analysis (COA)
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Post Testing Sample
Retention
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Laboratory Quality Assurance
(LQA)
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Laboratory Audits
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Employee Qualifications
Pest Management protocols include chemical, biological, and cultural methods, used to prevent and control pests on the cultivation site.
Each canopy is marked with clearly identifiable physical boundaries and of sufficient size to contain plants in their entirety at any point in time.
The Cultivation Plan includes a Premises Diagram, a Cannabis Waste Management Plan, and a Pest Management Plan.
All applicable pesticide application and storage protocols are compliant with regulations.
Chemicals are stored in a secured building or shed to prevent access by wildlife.
The licensed laboratory employee who receives the sample has completed the COC to include date, print, and sign their name on the accompanying sample COC.
The reserve sample is kept at a minimum for 45 business days after the analyses, after which time it is destroyed and denatured to the point the material is rendered unrecognizable and unusable.
The licensed laboratory has a LQA program to assure the reliability and validity of the analytical data produced by the laboratory.
An internal audit is conducted at least once per year or in accordance with the ISO/IEC 17025 accrediting body’s requirement.
The date, time, and the names and signatures of persons involved are recorded on the COC form. The COC form for a change of custody between licensees has not been altered.
A Certificate of Analysis (COA) is generated for each sample analyzed. A copy of the COA is recorded into the track and trace system and simultaneously uploaded to the DCC via email with a file name "METRC UID Number and Test Sample ID" and "Passed/Fail" in the heading.
Products are stored in a secure, fully enclosed trunk, or compartment within the interior of the vehicle. The vehicle/trailer has an alarm system and owned or leased by the licensee.
Proof of valid vehicle registration and current insurance is available upon request.
All Standard Operation Procedures (SOPs) are kept at the licensed premises, each SOP is accessible to laboratory employees during operating hours, and made available upon request.
An employee training program is developed and implemented to ensure competency of laboratory employees for their assigned functions.
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ISO/IEC 17025 certificate of accreditation is available upon request. ůů ƌĞĐŽƌĚƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ ƚŚĞ /^Kͬ/
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The microbusiness license all commercial cannabis activities applied for. Three (3) of the following commercial cannabis activities are performed on the licensed premises: cultivation, manufacturing, distribution, and retail. ůůƚƌĂŶƐĨĞƌƐŽĨĐĂŶŶĂďŝƐĂŶĚŶŽŶŵĂŶƵĨĂĐƚƵƌĞĚĐĂŶŶĂďŝƐƉƌŽĚƵĐƚĨƌŽŵĂůŝĐĞŶƐĞĚĐƵůƚŝǀĂƚŝŽŶ ƉƌĞŵŝƐĞƐŝƐĐŽŶĚƵĐƚĞĚďLJĂĚŝƐƚƌŝďƵƚŽƌůŝĐĞŶƐĞĚďLJƚŚĞĞƉĂƌƚŵĞŶƚ͘ All generators on the licensed premises are equipped with non-resettable hour-meters. For portable or stationary engines, a Permit to Operate or other proof of engine registration has been obtained from the Local Air District with jurisdiction over the licensed premises.
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N/A
No Cultivator license issued.
N/A
N/A
N/A
N/A
N/A
N/A
YES
Licensee holds Distribution/Storefront Retailer/LV1 Manufacturer licenses.
N/A
No Laboratory Testing license issued.
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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Customer Access to Retail
Area
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Hours of Operation
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Requirements While Not
Open for Business
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Cannabis Goods Display
ΑϭϱϰϬϲ;ĂͿ;ďͿCannabis
Goods for Sale
ΑϭϱϰϬϳ
Sale of Non-Cannabis Goods
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Sale of Live Plants and Seeds
ΑϭϱϰϭϬ
Customer Return of Cannabis
Goods
Αϭϱϰϭϯ;ďͿ;ĐͿ
Packaging/Exit Packaging
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Non-Storefront Retailer
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Delivery Employees
Αϭϱϰϭϳ;ĂͿ;ďͿ;ĚͿ
Delivery Vehicle
Requirements
ΑϭϱϰϮϰ;ĂͿ;ďͿ;ĐͿ
Inventory Reconciliation
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Design and Construction
Requirements for Exit Routes
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Egress and Evacuation: Exit routes are permanent. A minimum of two (2) exit routes in the workplace are in place and leads directly outside, to a street, or open space. The doors swing out in the direction of exit travel. Exit doors are unlocked. Employees are able to open the door from the inside at all times without keys, tools, or special knowledge.
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Cannabis goods are only displayed in the retail area. Display containers are accessible to customers with assistance from an employee of the licensee. Employees remain with the customer at all times.
Plants are not flowering, is shorter and narrower than 18 inches; and plants or seeds originated from a licensed nursery or a licensed microbusiness.
Cannabis goods are received from a licensed retailer or licensed microbusiness authorized to engage in distribution. The cannabis goods have not exceeded their best-by, sell-by, or expiration date.
The age of an individual is confirmed prior to granting him/her access to the licensed premises; one (1) employee is physically present in the retail area at all times; and all sales are done within the retail area of the licensed premises.
The licensed premises is open between the hours of 6:00 a.m. and 10:00 p.m. PST.
The licensed premises is securely locked with commercial-grade, nonresidential door locks, has an active alarm, and only employees and authorized individuals are allowed access.
Cannabis accessories and branded merchandise of any licensee are sold. Prepackaged, noncannabis-infused, non-alcoholic food and beverages are consumed in the designated consumption area on the licensed premises and such activities are allowed by the local jurisdiction.
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Vehicles are enclosed and unmarked; cannabis goods are not visible to the public and in a "secured area within the vehicle"; vehicle is outfitted with a GPS device owned by the Licensee, capable of 90-days recording retention.
The physical inventory is all accounted for, is consistent with the licensee's inventory records, and made available upon request.
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Packages/exit packages are tamper-evident, child resistant, and resealable. Immature plants are not placed in tamper-evident, child resistant, and resealable packaging.
Delivery employee is at least 21 years of age. A delivery employee provides a copy of the retail license, a copy of the QR Code Certificate, and their employee ID badge to a delivery customer upon request. The retailer maintains an accurate list of delivery employees and the list is available upon request.
Defective manufactured cannabis products are destroyed or returned to the licensed distributor from whom the cannabis goods were obtained.
The non-storefront retailer complies with all the requirements applicable to retailer licensees, except for those provisions related to public access to the licensed premises and the retail area. The licensed premises is closed to the public. www.hdlcompanies.com
Access granted only after identification is checked and confirmed by security.
YES
Hours of operation are within state requirements.
YES
Meets requirements.
YES
No open samples on sales floor. Inventory is displayed and stored behind the sales counter. YES
METRC manifest checked. Cannabis inventory delivered to the licensee by a licensed distributor. YES
Licensee does not operate a consumption area on the licensed premises.
YES
No plants or seeds sold on-site.
YES
Product returns are being handled appropriately. No problems reports.
YES
Exit packages are state compliant.
YES
Not applicable to this licensed premises.
N/A
Meets requirements. List of all current employees was provided.
YES
Meets requirements.
YES
Inventory reconciled monthly.
YES
YES
All emergency exit routes are unlocked are free of obstructions at the time.
CITATIONS COMPLIANT COMMENTS / NOTES
REGULATORY COMPLIANCE
Local Requirements
Inspection Date: Inspected By: Client: State License #: Status:
Legal Business Name/DBA: Local License #: Status:
LOCAL ORDINANCE AND OTHER REGULATIONS
DEFINITIONS
www.hdlcompanies.com
03/11/2024 Michelle Shaw City of Maywood C12-0000238-LIC Active Sinsemilla Indo Group dba OG Nation 16008494 Active
5-45.02(a)
License Required
A valid City license and "CUP" (Conditional Use Permit) are issued under this chapter.
Permits/licenses are current.
YES
5-46.07 (a)(1-6)
Operation Requirements
Licensee is compliant with state and local laws, maintains a record system; equipped with commercial grade locks, security alarms, and a camera system; sufficient odor absorbing ventilation and exhaust system are installed.
Meets requirements.
YES
5-46.07 (e)(1)(2)
Operation Requirements
Licensee is aware to notify the City Manager and the Chief of Police within 24 hours of discovery any of the following: significant discrepancy in inventory, diversion, theft, loss, or criminal activity.
Licensee acknowledges that any/all activity is to be reported to the City within 24 hours of discovery.
YES
5-46.14
Maintenance of Records
Records are produced at the premises in either hard copy or electronic form.
Records available upon request in both hard and electronic copy.
YES
5-46.15
Site Management
Maintenance of the exterior of the premises meets the requirements of this section.
Meets requirements.
YES
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HdL is making the following recommendations that require a response demonstrating proof of correction.
RECOMMENDATIONS FOR CORRECTIVE ACTION
1) §17221 WEIGHING DEVICES AND WEIGHMASTERS
CORRECTIVE ACTION: Licensee should provide to the City proof that all the weighing devices (scales) used on the licensed premises have current certification (renewed) and affixed with a valid seal. A current Weighmaster License should also be posted on the premises. Proof in the form of a digital photograph should be sufficient. 2) §17223 WASTE MANAGEMENT
CORRECTIVE ACTION: Licensee should provide to the City a copy of an SOP (Standard Operating Procedure) explaining how waste is rendered unusable and unrecognizable and disposed of on the licensed premises. The SOP should be available in hard copy or electronic format.