Agenda packet, second session — National City City Council, April 5, 2022 (part 2 of 4)

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Summary of Changes:

Change in Definitions: Changes in staffing in the City Clerk’s Office occurred in December of 2021, with a newly elected City Clerk and designated City Clerk staff overseeing the daily operations of the City Clerk ’s Office. The prior Elected City Clerk was also a member of staff making them responsible for daily operations in the City Clerk’s Office. The position of City Clerk changed to a part-time ceremonial position with the November Election of 2021, and the Deputy City Clerk serves as the City Clerk in the absence of the Elected City Clerk. The Municipal Code needs to reflect the change in responsibility as the Deputy City Clerk is the Elections Official and FPPC Filing Officer for the City.

Addition of Chapter 2.75.025 Campaign Statements and Filing Fees: The addition of Chapter

2.75.025 Campaign Statements and Filing Fees provides codified responsibilities and timelines for posting Campaign Statements and Filings to the City website within three (3) City business days of receipt as per Government Code Section 84616.

Furthermore, the section provides for established penalties and remedies within the chapter and direction of any late filing fees received to be deposited into the General Fund to defray the cost of City Elections as per Government Codes Section 91013.

Lastly, the Code has been updated to establish the filing fee of twenty -five ($25) dollars for a Candidate’s Nomination Papers as allowed by Government Code Section 10228. This is a fee charged by the County of San Diego Registrar of Voters for each set of Candidates Nomination Papers received for verification of signatures qualifying a potential Candidate. In the past, the City has subsidized this fee, and would now collect directly from the candidates. The City Clerk shall deposit all fees received into the General Fund.

Addition to Section 2.75.030 Campaign Contributions – Limitations and Exclusions:

Adding the following six line items provides for greater transparency and infor ms candidates considering running for office of FPPC/Government Code requirements:
(G) Anonymous Contributions per Government Code Section 84304, are not allowed. (H) Extensions of Credit per FPPC Regulations 18421 Extensions of credit for a prohibited unless a Candidate borrows funds which would be considered a Contribution by the Candidate to themselves and would be disclosed and documented as such. (I) Candidate Loan to Campaign per Government Code Section 84216, Candidate Loan to Campaign must be reported as such in detail in accordance with the FPPC and applicable state law.
(J) Cash Contributions per Government Code Section 82036, No Cash may be accepted totaling more than $100.
(K) Contributions of One-Hundred ($100) dollars or more per FPPC Regulations 18421- 18570 required contributions of One-Hundred ($100) dollars or more must be made by a means that is recordable such as check, web or election application.
(L) Identification of Contributors per Government Code Sections 84300- 84302 and FPPC Regulations 18421 restrict any contribution of twenty -five ($25) or more being deposited into a Candidates Account unless the required identifying information of that Contribution and Contributor is recorded including full name, street address including zip code. Any contributions totaling one-hundred ($100) or more the Candidate/Committee are required to record in addition to the name, address, zip the contributor’s occupation and employer’s name.

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Section 2.75.050 Retention of Records: Updated to reflect current retention requirements in compliance with FPPC Regulation 18401. Changes in the law in 2018, effective January 2019 required Candidates and their Committees to retain all records, including original source documentation such as bank statements and other records reflecting account activity, and copies of completed campaign statements. After two (2) years of retention of paper the documents may be scanned and saved onto a space saving devices such as a USB for retention.

Section 2.75.060 Electioneering: Updated to reflect the current Elections Code Section 319.5 by adding that Electioneering includes Vote -by-Mail Ballot Drop boxes, loitering near or disseminating visible or audible electioneering information.

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Contribution Limit to any
candidate or their controlled
committee
Contribution Limit to
PAC
Contribution from Political
Party Committee
Contribution from
Organization
including PAC,
Businesses, Labor
Notes
Carlsbad
$900 City Council
$3,100 Mayor, City
Treasurer, City Clerk n/a n/a n/a
Chula Vista $360 n/a $1,240 Not Allowed
Adjusted every two years
based on Consumer Price
Index
Coronado $200 $200 $200 Not Allowed
Any contribution of $5 or
more must be itemized
Del Mar $200 $200 $2,000 Not Allowed
El Cajon $10,000 $10,000 $10,000 $10,000
Encinitas $250 n/a $250 $250
Escondido
$1,750 Mayor or City
Treasurer n/a n/a n/a
Imperial Beach n/a n/a n/a n/a
default limitation of $4,900
per election ‐ Effective
January 1, 2021
(Regulation 18545(a)).

La Mesa n/a n/a n/a n/a
Follows FPPC
Single source
default limitation of $4,900
per election ‐ Effective
January 1, 2021
(Regulation 18545(a)).

Lemon Grove $1,000 $1,000 $1,000 $1,000
National City $1,000 $1,000 $2,000 $2,000
Oceanside $1,000 $1,000 $1,000 $1,000
Poway $250 n/a n/a n/a
San Diego
$650 City Council
$1,200 Mayor n/a n/a Not Allowed
San Marcos $250 $500 n/a Not Allowed
Santee $700 n/a $0 $0
Solana Beach $100 n/a $100 $100
No Contributions from City
Contractors
Vista $500 $500 $500 Not Allowed
Per Election Campaign Contribution Limits

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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REPEALING AND REPLACING CHAPTER 2.75, TITLED, "ELECTION CAMPAIGN REGULATIONS", TO

THE NATIONAL CITY MUNICIPAL CODE

WHEREAS
, in order to protect the integrity of the electoral process, and to serve the best interests of the people of National City, it is the desire of the City Council to adopt realistic and enforceable regulations applicable to political campaign contributions; and WHEREAS, such regulations may be enacted pursuant to the authority granted to the City by Article XI, Section 7 of the California Constitution, and are specifically authorized by Sections 81013 and 85703(a) of the Government Code, found in the Political Reform Act of 1974; and
WHEREAS, the regulations hereby enacted are intended to supplement the provisions of state law with regard to the making, acceptance, expenditure, and reporting of campaign contributions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY HEREBY ORDAINS AS FOLLOWS:

Section 1. T
hat Chapter 2.75 includes amendments to the National City Municipal Code, to read as follows:

CHAPTER 2
.75

ELECTION CAMPAIGN REGULATIONS
Sections

2.75.010 Purpose and Intent

2.75.020 Definitions

2.75.025 – Campaign Statements and Filing Fees

2.75.030 Campaign Contributions – Limitations and Exclusions

2.75.040 Campaign Expenditures – Uncontrolled by Candidate or Committee

2.75.050 Retention of Records

2.75.060 Electioneering

2.75.070 City Measures –- Exemption

2.75.080 Duties of City Clerk

2.75.090 Effect of Receipt of Funds on Voting

2.75.100 Enforcement Authority

2.75.110 Enforcement – Criminal or Civil Liability

2.75.120 Enforcement – Administrative

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2.75.130 C
ivil Actions by Residents

2.75.140 Time for Commencement of Actions

2.75.010 Purpose and Intent. It is the purpose and intent of the City Council in enacting this Chapter:

A. To place
realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in City elections.

B. To preser
ve an orderly political forum in which individuals may express themselves effectively.

C. To prev
ent the exercise by campaign contributors of potential undue or improper influence over elected officials.

D. To prom
ote participation in government and foster trust that the democratic process is not subverted by affluent special interest groups.

E. To provi
de for the full and fair enforcement of the provisions of this chapter.

2.75.020 Definitions. For the purposes of this chapter, the words and phrases used herein shall have the meanings ascribed to them by the Political Reform Act of 1974, Government Code Section 82000 et seq., except as follows:

A. "Candidate" applies to persons seeking an elective City office.

A.B. “City Clerk” also applies to Deputy City Clerk as the person in the City Clerk’s Office responsible for the daily operations and City Clerk in the absence of the elected City Clerk.

B.C. "City Election" means any primary, general, or special election, including recall election, held within the City of National City, for elective City office.

C.D. "Committee" means a candidate's controlled committee or a committee formed primarily to support or oppose a candidate, or a city general purpose committee active only in the City.

D.E. "Contribution" shall have the same meaning as set forth in Government Code Section 82015, but with respect to an election for City office, except that the exclusion set forth therein for costs of a meeting or fund-raising event in the home or office of the occupant shall be limited to costs of $1,000.00 or less.

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E.F. "Controlled Committee" means a committee which is controlled directly or indirectly by a candidate or which acts jointly with a candidate or controlled committee in connection with the making of expenditures. A candidate controls a committee if he or she, his or her agent, or any other committee he or she controls, has a significant influence on the actions or decisions of the committee.

F.G. "Electioneering" means the visible display or audible dissemination of information that advocates for or against any candidate.

G.H. "Elective City Office" means member of the City Council, including the Mayor.

H.I. "Enforcement Authority" means the special counsel, officer, agent, or entity designated by action of the City Attorney to enforce the provisions of this chapter.

Nothing in this chapter shall be construed as limiting the authority of any law enforcement agency or prosecuting attorney from enforcing the provisions of this chapter where such law enforcement agency or prosecuting attorney otherwise has lawful authority to do so.

I.J. "Expenditure" means a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, unless it is clear from the surrounding circumstances that it is not made for political purposes. An expenditure is made on the date the payment is made or on the date consideration, if any, is received, whichever is earlier.

J.K. "General Purpose Committee" shall have the same meaning as set forth in Government Code Section 82027.5.

K.L. "Independent Committee" means a committee that receives contributions or makes expenditures for the purpose of influencing or attempting to influence a City election, whi ch is not made with the cooperation, consultation, or in concert with, or at the request or suggestion of, any candidate or his or her committee, or any of their agents.

L.M. "Individual" means a natural person, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, labor union, committee, and any other organization or group of persons acting in concert, who meets the definition set forth in Government Code Section 82047. "Individual" does not include a Political Party Committee, a Political Action Committee, or an Independent Committee.

M.N. "Political Action Committee" means an organization that pools campaign contributions from members and donates those contributions to campaigns for or against candidates or ballot measures.

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N O. "Part y Committee" means the state central committee or county central committee of an organization that meets the requirements for recognition as a political party pursuant to Section 5100 or 5151 of the Elections Code.

2.75.025 – Campaign Statements and Filing Fees
A. Campaign Statements. (G.C.84616)
Each Candidate and each Committee shall be required to file those campaign statements required by the Political Reform Act of 1974 in the manner required by the Act. Campaign statements filed with the City Clerk shall be a matter of public record. The City Clerk shall, within three (3) City business days of the date of filing, post copies of campaign statements online at the City’s website if filed in paper. Campaign Statements filed through the City’s Electronic Filing software are posted immediately after filing.

B. Late Filing of Campaign Statements. (G.C. 91013)
If any Person files a campaign statement after any deadline imposed, they shall, in addition to any other penalties or remedies established by this chapter, be liable to the City Clerk in the amounts as set forth by State guidelines per calendar day until the statement is filed. The City Clerk shall deposit any funds received under this section into the General Fund of the City to defray the cost of City Elections.

C. Filing Fees. (G.C. 10228)
A filing fee of twenty-five ($25) dollars is established for a Candidate’s Nomination Papers for City Elective Office. The filing fee shall be paid to the City Clerk by each Candidate for a City Elective Office at the time the Candidate’s Nomination Paper is filed with the City Clerk, in addition to the Candidate statement fees determined in February of each odd numbered year. The City Clerk shall deposit all fees received into the General Fund. All filing fees and Candidate Statement Fees are non-refundable.

2.75.030 Campaign Contributions – Limitations and Exclusions.

A. Contributions by individuals to candidates or controlled committees. No individual shall make any contribution to a candidate and/or the candidate's controlled committee, with respect to any single City election, which will cause the total amount contributed by such individual to the candidate and the candi date's controlled committee, when combined, to exceed one-thousand ($1000.00) dollars in a calendar year.

B. Acceptanc e or solicitation by candidates or controlled committees from individuals.

No candidate or controlled committee, including the candidate's campaign treasurer, shall solicit or accept any contribution from any individual with respect to any single City election, which will cause the total amount contributed by such individual to the candidate and the candidate's controlled committee, when combined, to exceed one-thousand ($1,000.00) dollars in a calendar year.

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C. Contribut
ions by candidates. The provisions of subsections A and B of this section shall not apply to contributions from a candidate to his or her controlled committee, nor to the expenditure by the candidate of his or her personal funds on behalf of his or her own candidacy.

D. Contributions by political party committees, political action committees and independent committees to candidates or controlled committees. No political party committee, political action committee or independent committee, shall make any contribution to a candidate and/or the candidate's controlled committee, with respect to any single City election, which will cause the total amount contributed to the candidate and the candidate's controlled committee, when combined, to exceed two-thousand ($2,000) dollars in a calendar year.

E. Acceptance or solicitation by candidates or controlled committees from political party committees, political action commit tees and independent committees.

No candidate or controlled committee, including the candidate's campaign treasurer, shall solicit or accept any contribution from any political party committee, political action committee, or independent committee, with respect to any single City election, which will cause the total amount accepted by such political party committee, political action committee, or independent committee to the candidate and the candidate's controlled committee, when combined, to exceed two-thousand ($2,000) dollars in a calendar year.

F. Family contributions. Contributions by spouses shall be treated as separate contributions and shall not be aggregated. Contributions by children under eighteen (18) years of age shall be treated as contributions attributed equally to each parent or guardian.

G. Anonymous Contributions. (G.C. 84304) No Candidate or Controlled Committee, including the Candidate’s Treasurer, shall accept anonymous Contributions of one-hundred ($100) dollars or more. No person shall make a Contribution or loan for any other Person under an assumed name or under the name of any other Person.

H. Extensions of Credit. (FPPC Regs 18421) Extensions of credit for a period of more than thirty days are prohibited. Extensions of credit of more than one thousand dollars annually are prohibited. Provided, however, a Candidate may personally borrow an unlimited amount and such funds shall be considered a Contribution by the Candidate to himself or herself; provided, further, that such transaction is fully disclosed and documented in accordance with applicable law.

I. Candidate Loan to Campaign. (GC. 84216) If a Candidate is loaning the campaign money, such loan is required to be reported on Fair Political

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Practices Commission (FPPC) campaign filing forms in accordance with the applicable state law.

J. Cash Contributions. (G .C. 82036) No Candidate or Controlled Committee, including the Candidate’s campaign treasurer, shall solicit or accept any cash Contribution from any Person totaling one hundred dollars or more. A cash Contribution shall not be deemed received if it is not negotiated or deposited, and is returned to the contributor before the closing date of the campaign statement on which the Contribution would otherwise be reported. If a cash Contribution, other than a late Contribution, as defined by Section 82036 of the Political Reform Act, is negotiated or deposited, it shall not be deemed received if it is refunded within seventy -two hours of receipt. In the case of a late Contribution, as defined by Section 82036 of the Political Reform Act, it shall not be deemed received if it is returned to the Contributor within forty -eight hours of receipt.

K. Contributions of One Hundred Dollars ($100) or More. (FPPC Regs 18421– 18570) All Contributions totaling one hundred ($100) dollars or more must be made by check, web portal, or electronic application which accepts p ayments that are recordable. Contributions totaling one hundred dollars ($100) or more made by money order, cashier’s check, or traveler’s cheque are prohibited and must be returned to the contributor, as they lack identification properties.

F.L. Identification of Contributors. (G.C. 84300-84302 and FPPC Regs 18421) No Contribution shall be deposited into a Candidate or Committee’s City Election campaign account totaling twenty -five dollars ($25) or more unless the full name, street address including zip code, are on file with the Candidate or Committee receiving the Contribution. For Contributions totaling one hundred ($100) dollars or more, the contributor’s occupation and employer’s name, or if self-employed, the name of the business of the Person making the Contribution, must also be recorded.

GM . Applicability of section to candidate and committees. The provisions of this section are applicable to any contributions made to a candidate or controlled committee whether used by such candidate or controlled committee to finance a current campaign, to pay debts incurred in prior campaigns, or otherwise.

N H. Contribut ions by city contractors. No individual who contracts with the City of National City, either for the rendition of personal services or for the furnishing of any materials, supplies, or equipment to the City, or for the sale or lease of any land or building, to or from the City, shall make any contribution to a City candidate or controlled committee at any time between the commencement of negotiations for and (i) the completion of performance of such contract or (ii) the termination of negotiations for such contract, whichever occurs later.

IO . Contribut ions from City employees.

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1. It is
unlawful for a candidate or a candidate's controlled committee, to solicit, directly or indirectly, a contribution from a City employee with knowledge that the person from whom the contribution is solicited is a City employee.

2. This
subsection shall not prohibit a candidate or a candidate's controlled committee from soliciting contributions from City employees if the solicitation is part of a solicitation made to a significant segment of the public that may include City employees, and the solicitation does not otherwise violate the provisions of this chapter.

3. Nothing i
n this subsection prohibits a City employee from making a contribution to a candidate, and nothing in this subsection prohibits a candidate from accepting a contribution from a City employee.

4. As us ed in this subsection, the term "City employee" means any employee of the City of National City (City) or any of its organizational subdivisions, agencies, offices, boards, or commissions, or committees.

JP. Aggreg ation of contributions from different individuals financed, maintained, or controlled by same individual. Contributions from different individuals, but which are financed, maintained, or controlled by the same individual, shall be aggregated for purposes of the contribution limits of subsections A and B of this section. All contributions made by an individual whose contribution activity is financed, maintained, or controlled by an individual, shall be deemed to be made by the same individual.

KQ. A contribution drawn from a checking account or credit card account held by an individual doing business as a sole proprietorship is considered a contribution from that individual for purposes of this subsection, and may lawfully be received by a candidate for elected City office. A non-monetary contribution in the form of goods and services donated by an individual doing business as a sole proprietorship is considered a contribution from that individual for purposes of this subsection, and may lawfully be received by a candidate for elective City office and reported on Campaign Statement as In-Kind Contribution.(GC 84300).

LR. Adjustm ents for cost of living. The campaign contribution limits and contribution acceptance and solicitation limits specified in subsections A, B, C and D of this section shall be adjusted in February of each odd-numbered year commencing in

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2023, for changes in the Consumer Price Index (CPI) over the previous two- year period. The City Clerk shall apply the annual percent change in the CPI for All Urban Consumers (CPI-U) for the San Diego Metropolitan Area to determine the appropriate rate of increase or decrease. Adjustments made pursuant to this subsection shall be rounded to the nearest five ($5.00) dollars.

2.75.040 Campaign Expenditures - Uncontrolled by Candidate or Committee.

Persons or organizations not subject to the control of a candidate or committee, but who make independent expenditures for or against a candidate or committee, shall indicate clearly on any material published, displayed, or broadcast the names of the persons or organizations who made the expenditures, the true names of any persons on whose behalf the expenditures were made, and that the expenditures were not authorized by a candidate or committee.

2.75.050 Retention of Records.

The candidate, committee, or authorized agent thereof shall retain all campaign records for a period of three (3) five (5) years, if unsuccessful, and indefinitely, if successful, after the election. This includes all receipts, and bank records in compliance with FPPC Regulation 18401. After two (2) years the documents may be scanned and saved onto a space saving devices such as a USB for retention.

2.75.060 Electioneering. (EC 319.5)
It is unlawful for any person to participate in electioneering as a candidate, for a candidate, committee, or any other election campaign on City-owned property or at a City- hosted or City-sponsored event. This includes, but is not limited to, any of the following:

A. A display of a candidate's name, likeness, or logo.

B. A display
of a ballot measure number, title, subject, or logo.

C. Distribution of Bbuttons, hats, pencils, pens, shirts, signs, or stickers containing electioneering information.

D. Diss
emination of audible electioneering information.

E. At Vote-by-Mail Ballot Drop boxes, loitering near or disseminating visablevisible or audible electioneering information.

2.75.070 City Measures - Exempt ions.

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This chapter shall not apply to contributions or expenditures by a person or committee on behalf of a committee supporting or opposing a City measure.

2.75.080 Duties of City Clerk.

In addition to other duties of the City Clerk under the terms of this chapter, the City Clerk must:

A. Supply appropr
iate forms and manuals prescribed by the California Fair Political Practices Commission (FPPC). These forms and manuals must be furnished to all candidates and committees, and to all other persons required to report; B. Determi
ne whether required documents have been filed, and if so, whether they conform with the requirements of state law;
C. Notify
promptly all persons and known committees who have failed to file a document in the form and at the time required by state law; D. Report apparen
t violations of this chapter and applicable state law to the Enforcement Authority;
E. Compile and
maintain a current list of all statements or parts of statements filed with the City Clerk's office pertaining to each candidate and each measure; F. Cooperate w
ith the City Attorney and Enforcement Authority in the performance of the duties of the Enforcement Authority as prescribed in this chapter and applicable state laws.

2.75.090 Effect of Receipt of Funds on Voting.

Within twelve (12) months after receiving income totaling one -thousand ($1,000.00) dollars or more from any source, no holder of elective City Office shall make, participate in making, or attempt to influence, any government decision or action that will have a reasonably foreseeable material financial effect on any source of income that is distinguishable from its effect on the public generally, or on a significant segment of the public, as defined in the Political Reform Act of 1974.

2.75.100 Enforcement Authority.

A. Role of
City Attorney. The City Attorney shall not investigate or prosecute any alleged violations of this chapter, but shall defend the constitutionality and legality

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of thi
s chapter in any civil proceedings in which the City or City Council is a party.

B. Role of Sspecial Ccounsel. Review of complaints of violation of this chapter and criminal prosecution, shall be conducted only by special counsel who shall be the District Attorney, th e Attorney General, or such other qualified and independent special counsel, or combination of the foregoing, as may be appointed by the City Attorney. All special counsel shall have the authority to prosecute any and all Municipal Code violations of this chapter. However, Sspecial Ccounsel other than the Attorney General or District Attorney, shall not have authority to prosecute matters exclusively within the powers of the Attorney General or District Attorney under Government Code Section 91001. Special counsel shall also conduct civil litigation to compel compliance with this chapter or to enjoin conduct in violation of this chapter, and shall conduct administrative enforcement under Section 2.75.120 of this chapter.

C. Appointment of Sspecial Ccounsel. At least ninety (90) days prior to a City Eelection, Sspecial Ccounsel shall be appointed by the City Attorney. Should the appointment of additional Sspecial cCounsel become necessary or appropriate, the City Attorney may appoint such additional Sspecial Ccounsel as may be required. The appointment of Sspecial Ccounsel shall be in writing, and copies of the written appointment shall be provided to the City Council, City Manager, and City Clerk. The cost of Sspecial Ccounsel shall be paid from the City Gg eneral Ffund. Any activity by the Sspecial Ccounsel in accordance with this chapter, shall not be subject to review or control by the City Attorney or City Council.

D. Initiation of Ii nvestigations. Any person residing in the City who believes that a violation of this chapter has occurred, may file a written complaint requesting investigation of such violation by the Sspecial Ccounsel. If the Sspecial cCounsel determines that there is reason to believe a violation of this chapter has occurred, the special counsel shall conduct an investigation and may commence such civil criminal, or administrative legal action as he or she deems necessary for the enforcement of this chapter.

E. Investigative Ppowers of Sspecial Ccounsel. The Sspecial Ccounsel shall have such investigative powers as are necessary for the performance of duties described in this article, and may be furnished records of campaign contributions and expenditures of any person or committee. In the event that production of such records is refused, the Sspecial Ccounsel may commence civil litigation to compel such production.

F. Immunity of Sspecial Ccounsel. The Sspecial Ccounsel shall be immune from liability for enforcement of this chapter.

2.75.110 Enforcement – Criminal or Civil Liability.

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A. Crimi nal and Ccivil Lliability. Any knowing or willful violation of any provision of this chapter may be prosecuted either as an infraction or misdemeanor, at the discretion of the prosecutor. In addition to any other penalty provided by law, any willful or knowing failure to report truthfully any contribution or expenditure, shall be punishable by a fine of not less than one -thousand ($1,000.00) dollars. The campaign treasurer of any committee shall be both criminally and civilly liable for any violation of this article by the committee. In addition, the candidate shall be both criminally and civilly liable for any violation by a committee controlled by the candidate.

B. Forfe iture of Ccontributions. In any legal action brought under this chapter for injunctive relief or civil liability, where it is determined that a candidate or committee has accepted a contribution or contributions in excess of the applicable limits set forth in this chapter, the full amount of said contribution(s) shall be forfeited to the City's Ggeneral Ffund. If funds are not available in the election campaign account for this purpose, the candidate or campaign treasurer shall be personally liable to pay said amount to the City's Ggeneral Ffund.

2.75.120 Enforcement – Admin istrative
A. Additional to Oother Rremedies. The remedies provided for by this section are in addition to all other legal remedies, civil or criminal, which may be pursued by the City to address any violation of this chapter.

B. Notice and Oorder. Whenever the Sspecial Ccounsel appointed pursuant to Section 2.75.100, determines that there is probable cause that a violation of one or more provisions of this chapter has occurred or exists, a written notice and order may be issued to the alleged violator.

C. Contents of Nnotice and Oorder. The Nnotice and Oorder shall refer to the code section violated and describe how the sections are or have been violated, and the dates of all violations. The notice and order shall also state a date, time and place for a hearing which shall be held no fewer than ten (10) days following service of the notice.

D. Service of Notice and Order. The Nn otice and Oorder shall be served upon the alleged violator by personal service, or by certified mail, with postage prepaid and return receipt requested.

E. Designat
ion of Hearing Officer. The City Attorney shall designate a hearing officer, who shall not be a City employee. The compensation of the hearing officer, if any, shall be paid by the City. The retention and compensation of the hearing officer shall not be directly or indirectly conditioned upon the outcome of the hearing.

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F. Violation Eestablished by Pp reponderance of Ee vidence. At the hearing, the hearing officer shall consider whether a preponderance of evidence demonstrates the existence of a violation.

G. Conduct of
Hearing. Hearings shall be conducted in an expeditious manner to enable all interested parties to present relevant evidence. Formal rules of evidence shall not be applied. Time limits for presenting evidence, order of testimony, handling of exhibits, and similar matters, shall be determined at the discretion of the hearing officer. The alleged violator or any other interested persons may present testimony or documentary evidence concerning the existence of the violations, and the alleged violator may cross -examine witnesses. The hearing officer may continue the hearing to obtain additional evidence, or for other good cause.

H. Failure to Aattend Hhearing. Failure of the alleged violator to attend the hearing shall constitute an admission of the violation by the alleged violator and a failure to exhaust administrative remedies that may bar judicial review.

I. Decision by Hhearing Oofficer. After considering all the testimony and the evidence submitted at the hearing, the hearing officer shall issue a written decision, including findings regarding the existence of each violation, the reasons for the decision, and providing notice of the right to judicial review. The written decision shall be issued within thirty (30) days of the conclusion of the hearing, and served on the alleged violator within ten (10) days of its issuance. The decision shall be final upon service upon the alleged violator, subject only to judicial review as permitted by law.

J. Imposition of Pp enalty. If the hearing officer finds by a preponderance of the evidence that the alleged violator committed the violation, the hearing officer shall impose a penalty and a date the penalty and any costs of the hearing shall be due and payable by the violator.

K. Amount of Ppenalty. The administrative penalty for a violation of this chapter shall be a maximum one-thousand ($1,000.00) dollars per violation, and the maximum total penalty shall not exceed ten-thousand ($10,000.00) dollars. In determining the amount of penalty to be imposed, the hearing officer shall consider the following factors: duration of the violation, frequency of recurrence of the violation, seriousness of the violation, history of violations, good faith effort of the violator to correct the violation, economic effect of the violation on the violator, impact of the violation on the community and the City, and any other relevant factors that justice may require.

L. Failure to Pp ay Ppenalty. Upon the failure of any person to pay the assessed administrative penalty by the date specified in the hearing officer's decision, the unpaid amount shall constitute a personal obligation of the violator. The City Attorney shall collect the obligation by use of any appropriate legal means.

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M. Judicia l Rreview. Any person subject to the decision of the hearing officer, may obtain judicial review of the decision pursuant to the provisions of Government Code Section 53069.4.

2.75.130 Civil Actions by Residents.

A. Any res
ident of the City may bring a civil action regarding the provisions of this chapter, as follows:

1. To enjoin an
actual or threatened violation;

2. To compel
compliance by a private person;

3. To
obtain declaratory relief.

B. Any act
ion brought under this Section 2.75.130, shall be commenced within six (6) months of the time the alleged violation occurred.

2.75.140 Time for Commencement of Actions. Exc ept as provided in Section 2.75.130, any action brought alleging violation of this chapter must be commenced within two (2) years of the date of the alleged violation.

Section 2. That this Ordinance shall become effective on May 5, 2022.

PASSE
D and ADOPTED this ____ day of April 5, 2022.

Alejandra S otelo-Solis, Mayor
ATTEST:

Luz Molina, City Clerk
APPROV
ED AS TO FORM:

Charles E. Bell Jr.

City Attorney

ATTACHMENT C

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ATTACHMENT D
A

N ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REPEALING AND REPLACING CHAPTER 2.75, TITLED, "ELECTION CAMPAIGN REGULATIONS ," TO

THE NATIONAL CITY MUNICIPAL CODE
WHEREAS, i
n order to protect the integrity of the electoral process, and to serve the best interests of the people of National City, it is the desire of the City Council to adopt realistic and enforceable regulations applicable to political campaign contributions; and WHEREAS, such regulations may be enacted pursuant to the authority granted to the City by Article XI, Section 7 of the California Constitution, and are specifically authorized by Sections 81013 and 85703(a) of the Government Code, found in the Political Reform Act of 1974; and
WHEREAS, the regulations hereby enacted are intended to supplement the provisions of state law with regard to the making, acceptance, expenditure, and reporting of campaign contributions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY HEREBY ORDAINS AS FOLLOWS:

Section 1. Tha
t Chapter 2.75 includes amendments to the National City Municipal Code, to read as follows:

CHAPTER 2.
75 ELECTION CAMPAIGN REGULATIONS
Sections

2.75.010 Purpose and Intent

2.75.020 Definitions

2.75.025 – Campaign Statements and Filing Fees

2.75.030 Campaign Contributions – Limitations and Exclusions

2.75.040 Campaign Expenditures – Uncontrolled by Candidate or Committee

2.75.050 Retention of Records

2.75.060 Electioneering

2.75.070 City Measures – Exemption

2.75.080 Duties of City Clerk

2.75.090 Effect of Receipt of Funds on Voting

2.75.100 Enforcement Authority

2.75.110 Enforcement – Criminal or Civil Liability

2.75.120 Enforcement – Administrative

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2. 75.130 Civil Actions by Residents

2.75.140 Time for Commencement of Actions

2.75.010 Purpose and Intent. It is the purpose and intent of the City Council in enacting this Chapter:

A. To place
realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in City elections.

B. To preser
ve an orderly political forum in which individuals may express themselves effectively.

C. To prev
ent the exercise by campaign contributors of potential undue or improper influence over elected officials.

D. To prom
ote participation in government and foster trust that the democratic process is not subverted by affluent special interest groups.

E. To provi
de for the full and fair enforcement of the provisions of this chapter.

A. "Candidate" applies to persons seeking an elective City office.

B. “City Clerk” also applies to Deputy City Clerk as the person in the City Clerk’s Office responsible for the daily operations and City Clerk in the absence of the elected City Clerk.

C. "City Election" means any primary, general, or special election, including recall election, held within the City of National City, for elective City office.

D. "Committee" means a candidate's controlled committee or a committee formed primarily to support or oppose a candidate, or a city general purpose committee active only in the City.

E. "Contribution" shall have the same meaning as set forth in Government Code Section 82015, but with respect to an election for City office, except that the exclusion set forth therein for costs of a meeting or fund-raising event in the home or office of the occupant shall be limited to costs of $1,000.00 or less.

F. "Controlled Committee" means a committee which is controlled directly or indirectly by a candidate or which acts jointly with a candidate or controlled committee in connection with the making of expenditures. A candidate controls a committee if he or she, his or her agent, or any other committee he or she controls, has a

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ATTACHMENT D
s
ignificant influence on the actions or decisions of the committee.

G. "Electioneering" means the visible display or audible dissemination of information that advocates for or against any candidate.

H. "Elective City Office" means member of the City Council, including the Mayor.

I. "Enforcement Authority" means the special counsel, officer, agent, or entity designated by action of the City Attorney to enforce the provisions of this chapter.

Nothing in this chapter shall be construed as limiting the authority of any law enforcement agency or prosecuting attorney from enforcing the provisions of thi s chapter where such law enforcement agency or prosecuting attorney otherwise has lawful authority to do so.

J. "Expenditure" means a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, unless it is clear from the surrounding circumstances that it is not made for political purposes. An expenditure is made on the date the payment is made or on the date consideration, if any, is received, whichever is earlier.

K. "General Purpose Committee" shall have the same meaning as set forth in Government Code Section 82027.5.

L. "Independent Committee" means a committee that receives contributions or makes expenditures for the purpose of influencing or attempting to influence a City election, which is not made with the cooperation, consultation, or in concert with, or at the request or suggestion of, any candidate or his or her committee, or any of their agents.

M. "Individual" means a natural person, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, labor union, committee, and any other organization or group of persons acting in concert, who meets the definition set forth in Government Code Section 82047. "Individual" does not include a Political Party Committee, a Political Action Committee, or an Independent Committee.

N. "Political Action Committee" means an organization that pools campaign contributions from members and donates those contributions to campaigns for or against candidates or ballot measures.

O. "Party C
ommittee" means the state central committee or county central committee of an organization that meets the requirements for recognition as a political party pursuant to Section 5100 or 5151 of the Elections Code.

2.75.025 – Ca
mpaign Statements and Filing Fees
A. Campaign Statements.

Each Candidate and each Committee shall be required to file those campaign statements required by the Political Reform Act of 1974 in the manner required by the Act. Campaign statements filed with the City Clerk shall be a matter of public record. The City Clerk shall, within three (3) City business days of the date of filing, post copies of campaign statements online at the City’s website if filed in paper.

Campaign Statements filed through the City’s Electronic Filing software are posted immediately after filing.

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ATTACHMENT D
B. Late Filing of Campaign Statements.

If any Person files a campaign statement after any deadline imposed, they shall, in addition to any other penalties or remedies established by this chapter, be liable to the City Clerk in the amounts as set forth by State guidelines per calendar day until the statement is filed. The City Clerk shall deposit any funds received under this section into the General Fund of the City to defray the cost of City Elections.

C. Filing Fees.

A filing fee of twenty-five ( $25) dollars is established for a Candidate’s Nomination Papers for City Elective Office. The filing fee shall be paid to the City Clerk by each Candidate for a City Elective Office at the time the Candidate’s Nomination Paper is filed with the City Clerk, in addition to the Candidate statement fees determined in February of each odd numbered year. The City Clerk shall deposit all fees received into the General Fund. All filing fees and Candidate Statement Fees are non-refundable. (Government Code Section 10228).

2.75.030 Campaign Contributions – Limitations and Exclusions.

A. Contributions by individuals to candidates or controlled committees. No individual shall make any contribution to a candidate and/or the candidate's controlled committee, with respect to any single City election, which will cause the total amount contributed by such individual to the candidate and the candidate's controlled committee, when combined, to exceed one-thousand ($1000.00) dollars in a calendar year.

B. Acceptance o
r solicitation by candidates or controlled committees from individuals.

No candidate or controlled committee, including the candidate's campaign treasurer, shall solicit or accept any contribution from any individual with respect to any single City election, which will cause the total amount cont ributed by such individual to the candidate and the candidate's controlled committee, when combined, to exceed one-thousand ($1,000.00) dollars in a calendar year.

C. Contribut
ions by candidates. The provisions of subsections A and B of this section shall not apply to contributions from a candidate to his or her controlled committee, nor to the expenditure by the candidate of his or her personal funds on behalf of his or her own candidacy.

D. Contribut
ions by political party committees, political action comm ittees and independent committees to candidates or controlled committees. No political party committee, political action committee or independent committee, shall make any contribution to a candidate and/or the candidate's controlled committee, with respect to any single City election, which will cause the total amount contributed to the candidate and the candidate's controlled committee, when combined, to exceed two-thousand ($2,000) dollars in a calendar year.

E. Acceptance or solicitation by candidates or controlled committees from political party committees, political action committees and independent committees.

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ATTACHMENT D
and
the candidate's controlled committee, when combined, to exceed two- thousand ($2,000) dollars in a calendar year.

G. Anonymous Con
tributions. No Candidate or Controlled Committee, including the Candidate’s Treasurer, shall accept anonymous Contributions of one- hundred ($100) dollars or more. No person shall make a Contribution or loan for any other Person under an assumed name or under the name of any other Person.

H. Extensions of Credit. Extensions of credit for a period of more than thirty days are prohibited. Extensions of credit of more than one thousand dollars annually are prohibited. Provided, however, a Candidate may personally borrow an unlimited amount and such funds shall be considered a Contribution by the Candidate to himself or herself; provided, further, that such transaction is fully disclosed and documented in accordance with applicable law.

I. Candidate Loan to Campaign. If a Candidate is loaning the campaign money, such loan is required to be reported on Fair Polit ical Practices Commission (FPPC) campaign filing forms in accordance with the applicable state law.

J. Cash Contributions. No Candidate or Controlled Committee, including the Candidate’s campaign treasurer, shall solicit or accept any cash Contribution from any Person totaling one hundred dollars or more. A cash Contribution shall not be deemed received if it is not negotiated or deposited, and is returned to the contributor before the closing date of the campaign statement on which the Contribution would otherwise be reported. If a cash Contribution, other than a late Contribution, as defined by Section 82036 of the Political Reform Act, is negotiated or deposited, it shall not be deemed received if it is refunded within seventy -two hours of receipt. In the case of a late Contribution, as defined by Section 82036 of the Political Reform Act, it shall not be deemed received if it is returned to the Contributor within forty-eight hours of receipt.

K. Contributions of One Hundred Dollars or More. All Contributions totaling one hundred ($100) dollars or more must be made by check, web portal, or electronic application which accepts Payments that are recordable. Contributions totaling one hundred dollars or more made by money order, cashier’s check, or traveler’s cheque are prohibited and must be returned to the contributor.

L. Identification of Contributors. No Contribution shall be deposited into a Candidate or Committee’s City Election campaign account totaling twenty-five dollars or more unless the full name, street address including zip code, are on file with the Candidate or Committee receiving the Contribution. For Contributions totaling one hundred dollars or more, the contributor’s occupation and employer’s name, or if self-employed, the name of the business of the Person making the Contribution, must also be recorded.

M. Applicabil
ity of section to candidate and committees. The provisions of this section are applicable to any contributions made to a candidate or controlled committee whether used by such candidate or controlled committee to finance a current campaign, to pay debts incurred in prior campaigns, or otherwise.

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ATTACHMENT D
N. C
ontributions by city contractors. No individual who contracts with the City of National City, either for the rendition of personal services or for the furnishing of any materials, supplies, or equipment to the City, or for the sale or lease of any land or building, to or from the City, shall make any contribution to a City candidate or controlled committee at any time between the comm encement of negotiations for and (i) the completion of performance of such contract or (ii) the termination of negotiations for such contract, whichever occurs later.

O. Contributi
ons from City employees.

2. This s
ubsection shall not prohibit a candidate or a candidate's controlled committee from soliciting contributions from City employees if the solicitation is part of a solicitation made to a significant segment of the public that may include City employees, and the solicitation does not otherwise violate the provisions of this chapter.

3. Nothing in
this subsection prohibits a City employee from making a contribution to a candidate, and nothing in this subsection prohibits a candidate from accepting a contribution from a City employee.

4. As used in
this subsection, the term "City employee" means any employee of the City of National City (City) or any of its organizational subdivisions, agencies, offices, boards, commissions, or committees.

P. Aggregation of contributions from different individuals financed, maintained, or controlled by same individual. Contributions from different individuals, but which are financed, maintained, or controlled by the same individual, shall be aggregated for purposes of the contribution limits of subsections A and B of this section. All contributions made by an individual whose contribution activity is financed, maintained, or controlled by an individual, shall be deemed to be made by the same individual.

Q. A contri
bution drawn from a checking account or credit card account held by an individual doing business as a sole proprietorship is considered a contribution from that individual for purposes of this subsection, and may lawfully be received by a candidate for elected City office. A non-monetary contribution in the form of goods and services donated by an individual doing business as a sole proprietorship is considered a contribution from that individual for purposes of this subsection, and may lawfully be received by a candidate for elective City office and reported on Campaign Statement as In-Kind Contribution.

R. Adjustment
s for cost of living. The campaign contribution limits and contribution acceptance and solicitation limits specified in subsections A, B, C and D of this section shall be adjusted in February of each odd -numbered year commencing in 2023, for changes in the Consumer Price Index (CPI) over the previous two- year period. The City Clerk shall apply the annual percent change in the CPI for All Urban Consumers (CPI -U) for the San Diego Metropolitan Area to determine the appropriate rate of increase or decrease. Adjustments made pursuant to this subsection shall be rounded to the nearest five ($5.00) dollars.

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ATTACHMENT D

2.75.040 Campaign Expenditures - Uncontrolled by Candidate or Committee.

Persons or
organizations not subject to the control of a candidate or committee, but who make independent expenditures for or against a candidate or committee, shall indicate clearly on any material published, displayed, or broadcast the names of the persons or organizations who made the expenditures, the true names of any persons on whose behalf the expenditures were made, and that the expenditures were not authorized by a candidate or committee.

2.75.050 Retention of Records.

The candidate
, committee, or authorized agent thereof shall retain all campaign records for a period of five (5) years, if unsuccessful, and indefinitely, if successful, after the election. This includes all receipts, and bank records incompliance with FPPC Regulation 18401(11)(B)(b)(2).

2.75.060 Electioneering.

It is unlaw
ful for any person to participate in electioneering as a candidate, for a candidate, committee, or any other election campaign on City-owned property or at a City-hosted or City-sponsored event. This includes, but is not limited to, any of the following:

A. A display of
a candidate's name, likeness, or logo.

B. A display of a ballot measure number, title, subject, or logo.

C. Buttons, hats, pencils, pens, shirts, signs, or stickers containing electioneering information.

D. Dissemination of audible electioneering information.

E. At Vote-by-Mail Ballot Drop boxes, loitering near or disseminating visible or audible electioneering information.

2.75.070 City Measures - Exempti ons.

This chapt
er shall not apply to contributions or expenditures by a person or committee on behalf of a committee supporting or opposing a City measure.

2.75.080 Duties of City Clerk.

In addition t
o other duties of the City Clerk under the terms of this chapter, the City Clerk must:

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ATTACHMENT D
C. N
otify promptly all persons and known committees who have failed to file a document in the form and at the time required by state law; D. Report apparent
violations of this chapter and applicable state law to the Enforcement Authority;
E. Compile and m
aintain a current list of all statements or parts of statements filed with the City Clerk's office pertaining to each candidate and each measure; F. Cooperate wi
th the City Attorney and Enforcement Authority in the performance of the duties of the Enforcement Authority as prescribed in this chapter and applicable state laws.

2.75.090 Effect of Receipt of Funds on Voting.

Within t
welve (12) months after receiving income totaling one -thousand ( $1,000.00) dollars or more from any source, no holder of elective City Office shall make, participate in making, or attempt to influence, any government decision or action that will have a reasonably foreseeable material financial effect on any source of income that is distinguishable from its effect on the public generally, or on a significant segment of the public, as defined in the Political Reform Act of 1974.

2.75.100 Enforcement Authority.

A. Role of Ci
ty Attorney.

The City Attorney shall not investigate or prosecute any alleged violations of this chapter, but shall defend the constitutionality and legality of this chapter in any civil proceedings in which the City or City Council is a party.

B. Role of Speci
al Counsel.

Review of complaints of violation of this chapter and criminal prosecution, shall be conducted only by Special Counsel who shall be the District Attorney, the Attorney General, or such other qualified and independent special counsel, or combination of the foregoing, as may be appointed by the City Attorney. All special counsel shall have the authority to prosecute any and all Municipal Code violations of this chapter. However, special counsel other than the Attorney General or District Attorney, shall not have authority to prosecute matters exclusively within the powers of the Attorney General or District Attorney under Government Code Section 91001. Special Counsel shall also conduct civil litigation to compel compliance with this chapter or to enjoin conduct in violation of this chapter, and shall conduct administrative enforcement under Section 2.75.120 of this chapter.

C. Appointment o
f Special Counsel.

At least ninety (90) days prior to a City Election, Special Counsel shall be appointed by the City Attorney. Should the appointment of additional S pecial Counsel become necessary or appropriate, the City Attorney may appoint such additional Special Counsel as may be required. The appointment of Special Counsel shall be in writing, and copies of the written appointment shall be provided to the City Council, City Manager, and City Clerk. The cost of Special Counsel shall be paid from the City General Fund. Any activity by the Special Counsel in accordance with this chapter, shall not be subject to review or control by the City Attorney or City Council.

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ATTACHMENT D
D. Initiati
on of Investigations.

Any person residing in the City who believes that a violation of this chapter has occurred, may file a written complaint requesting investigation of such violation by the Special C ounsel. If the Special Counsel determines that there is reason to believe a violation of this chapter has occurred, the Special Counsel shall conduct an investigation and may commence such civil criminal, or administrative legal action as he or she deems necessary for the enforcement of this chapter.

E. Investig
ative Powers of Special Counsel.

The Special Counsel shall have such investigative powers as are necessary for the performance of duties described in this article, and may be furnished records of campaign contributions and expenditures of any person or committee. In the event that production of such records is refused, the special counsel may commence civil litigation to compel such production.

F. Immunity of
Special Counsel.

The Special Counsel shall be immune from liability for enforcement of this chapter.

2.75.110 Enforcement – Criminal or Civil Liability.

A. Criminal
and Civil Liability.

Any knowing or willful violation of any provision of this chapter may be prosecuted either as an infraction or misdemeanor, at the discretion of the prosecutor. In addition to any other penalty provided by law, any willful or knowing failure to report truthfully any contribution or expenditure, shall be punishable by a fine of not less than one-thousand ($1,000.00) dollars. The campaign treasurer of any committee shall be both criminally and civilly liable for any violation of this article by the committee. In addition, the candidate shall be both criminally and civilly liable for any violation by a committee controlled by the candidate.

B. Forfeitur
e of Contributions.

In any legal action brought under this chapter for injunctive relief or civil liability , where it is determined that a candidate or committee has accepted a contribution or contributions in excess of the applicable limits set forth in this chapter, the full amount of said contribution(s) shall be forfeited to the City's General Fund. If funds are not available in the election campaign account for this purpose, the candidate or campaign treasurer shall be personally liable to pay sai d amount to the City's General Fund.

2.75.120 Enforcement – Adminis trative
A. Additional
to Other Remedies.

The remedies provided for by this section are in addition to all other legal remedies, civil or criminal, which may be pursued by the City to address any violation of this chapter.

B. Notice and Orde
r.

Whenever the Special Counsel appointed pursuant to Section 2.75.100, determines that there is probable cause that a violation of one or more provisions of this chapter has occurred or exists, a written notice and order may be issued to the alleged violator.

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ATTACHMENT D
C. C
ontents of Notice and Order.

The Notice and Order shall refer to the code section violated and describe how the sections are or have been violated, and the dates of all violations. The notice and order shall also state a date, time and place for a hearing which shall be held no fewer than ten (10) days following service of the notice.

D. Service of
Notice and Order.

The Notice and O rder shall be served upon the alleged violator by personal service, or by certified mail, with postage prepaid and return receipt requested.

E. Designati
on of Hearing Officer.

The City Attorney shall designate a hearing officer, who shall not be a City employee. The compensation of the hearing officer, if any, shall be paid by the City. The retention and compensation of the hearing officer shall not be directly or indirectly conditioned upon the outcome of the hearing.

F. Violation Es
tablished by Preponderance of Evidence.

At the hearing, the hearing officer shall consider whether a preponderance of evidence demonstrates the existence of a violation.

G. Conduct of H
earing.

Hearings shall be conducted in an expeditious manner to enable all interested parties to present relevant evidence. Formal rules of evidence shall not be applied.

Time limits for presenting evidence, order of testimony, handling of exhibits, and similar matters, shall be determined at the discretion of the hearing officer. The alleged violator or any other interested persons may present testimony or documentary evidence concerning the existence of the violations, and the alleged violator may cross -examine witnesses. The hearing officer may continue the hearing to obtain additional evidence, or for other good cause.

H. Failure to At
tend Hearing.

Failure of the alleged violator to attend the hearing shall constitute an admission of the vio lation by the alleged violator and a failure to exhaust administrative remedies that may bar judicial review.

I. Decision by
Hearing Officer.

After considering all the testimony and the evidence submitted at the hearing, the hearing officer shall issue a written decision, including findings regarding the existence of each violation, the reasons for the decision, and providing notice of the right to judicial review. The written decision shall be issued within thirty (30) days of the conclusion of the hearing, and served on the alleged violator within ten (10) days of its issuance. The decision shall be final upon service upon the alleged violator, subject only to judicial review as permitted by law.

J. Impositi
on of Penalty.

If the hearing officer finds by a preponderance of the evidence that the alleged violator committed the violation, the hearing officer shall impose a penalty and a date the penalty and any costs of the hearing shall be due and payable by the violator.

K. Amount of
Penalty.

The administrative penalty for a violation of this chapter shall be a maximum one- thousand ($1,000.00) dollars per violation, and the maximum total penalty shall not exceed ten-thousand ($10,000.00) dollars. In determining the amount of penalty

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ATTACHMENT D
t
o be imposed, the hearing officer shall consider the following factors: duration of the violation, frequency of recurrence of the violation, seriousness of the violation, history of violations, good faith effort of the violator to correct the violation, economic effect of the violation on the violator, impact of the violation on the community and the City, and any other relevant factors that justice may require.

L. Failure to P
ay Penalty.

Upon the failure of any person to pay the assessed administrative penalty by the date specified in the hearing officer's decision, the unpaid amount shall constitute a personal obligation of the violator. The City Attorney shall collect the obligation by use of any appropriate legal means.

M. Judicial R
eview.

Any person subject to the decision of the hearing officer, may obtain judicial review of the decision pursuant to the provisions of Government Code Section 53069.4.

2.75.130 Civil Actions by Residents.

A. Any resident of the City may bring a civil action regarding the provisions of this chapter, as follows:

1. To enjoin an actual or threatened violation;

2. To compel compliance by a private person;

3. To obtain declaratory relief.

B. Any action brought under this Section 2.75.130, shall be commenced within six (6) months of the time the alleged violation occurred.

2.75.140 Time for Commencement of Actions.

Except as provided in Section 2.75.130, any action brought al leging violation of this chapter must be commenced within two (2) years of the date of the alleged violation.

Section 2. That this Ordinance shall become effective on May 5, 2022.

PASSED and ADOPTED this ____ day of April 5, 2022.

Alejandra Sot elo-Solis, Mayor
ATTEST:

Luz Molina, City Clerk

APPROVE
D AS TO FORM:

Charles E. Bell Jr.

City Attorney

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The following page(s) contain the backup material for Agenda Item: Public Hearing and Adoption of an Ordinance of the City Council of the City of National City, California, Amending Municipal Code 9.60.230 (Evidence of a Cannabis Owner(s), and Representatives(s) Background Check Required) and 9.60.230(j) (general Operating Requirements for all Commercial Cannabis Businesses. (City Manager) Please scroll down to view the backup material.
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CITY OF NATIONAL CITY, CALIFORNIA

COUNCIL AGENDA STATEMENT
MEETING DATE: April 5, 2022
ITEM TITLE:

AGENDA ITEM NO.

Public Hearing and Adoption of an Ordinance of the City of National City, California, Amending National City Municipal Code 9.60.110 (Evidence of a Cannabis Owner(s), and Representative(s) Background Check Required) and 9.60.2300) (General Operating Requirements for all Commercial Cannabis Businesses). (City Manager)
PREPARED BY:

DEPARTMENT: City M,:inager's Office
/ !Megan Gamwell, Economic Development Specialist I
PHONE: ;619-336-421�
APPROVED BY: . -- '- �-
/�--::--�-1-1 =-...:-.... -----
EXPLANATION:

See Attachment 2; Ordinance Chapter 9.60 to the National City Municipal Code regulating Commercial Cannabis Activity.

FINANCIAL STATEMENT:

ACCOUNT NO.

ENVIRONMENTAL REVIEW:
n/a
APPROVED:

APPROVED:

ORDINANCE: INTRODUCTION: D FINAL ADOPTION: cg]
STAFF RECOMMENDATION:

Adoption the Ordinance ..

BOARD/ COMMISSION RECOMMENDATION:
;N/A
ATTACHMENTS:

1. Ordinance - Clean Copy

2. Ordinance - Underline and Strikethrough Version
Finance
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Attachment 3
Commercial Cannabis Activity 1 Ordinance No. 2021 - 2487 NCMC Chapter 9.60 May 4, 2021
ORDINANCE NO. 2021 -
NATIONAL CITY ORDINANCE ADDING CHAPTER 9.60 TO THE NATIONAL CITY

MUNICIPAL CODE REGULATION OF COMMERCIAL CANNABIS ACTIVITY Section 9.60.010. Purpose and Intent.

It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of medically-ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same. It is also the purpose and intent of this Chapter to provide access to adult-use cannabis for persons aged twenty-one (21) and over as authorized by the Control, Tax & Regulate the Adult Use Cannabis Act (“AUMA” or “Proposition 64” approved by California voters in 2016), while imposing sensible regulations on the use of land to protect the City of National City’s residents, neighborhoods, and businesses from disproportionately negative impacts. As such, it is the purpose and intent of this Chapter to regulate the cultivation, processing, manufacturing testing, sale, delivery, distribution and transportation of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City of National City and to enforce rules and regulations consistent with state and local law. It is the further purpose of intent of this Chapter to require all commercial cannabis operators to obtain and renew annually a commercial cannabis business permit to operate within the City of National City. Nothing in this Chapter is intended to authorize the possession, use, or provision of cannabis for purposes that violate state or local law. The provisions of this Chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City of National City, and are in addition to any permits, licenses and approval required under state, City, or other law.

Section 9.60.020. Legal Authority.

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of the MAUCRSA, and any subsequent state legislation and/or regulations regarding same, the City of National City is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City of National City to all commercial cannabis activity.
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Attachment 3
Commercial Cannabis Activity 2 Ordinance No. 2021 - 2487 NCMC Chapter 9.60 May 4, 2021
Section 9.60.030. Cannabis Cultivation and Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter.

Except as specifically authorized in this Chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation (other than as provided under Bus. & Prof. Code Section 26090(e), of cannabis or cannabis product is expressly prohibited in the City of National City.

Section 9.60.040. Compliance with State and Local Laws.

It is the responsibility of the owners and operators of the commercial cannabis business, or any other responsible person(s), to ensure that it is, always, operating in a manner compliant with all applicable state and local laws, and any regulations promulgated thereunder. Nothing in this Chapter shall be construed as authorizing any actions that violate state law or local law with respect to the operation of a commercial cannabis business. It shall be the responsibility of the owners and the operators of the commercial cannabis business, or any other responsible person(s), to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with all applicable state and local laws, including the MAUCRSA, and any subsequently enacted state or local law or regulatory, licensing, or certification requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the commercial cannabis business permit.

Section 9.60.050. Definitions.

All definitions pertaining to cannabis regulation that appear in Business and Professions Code Section 26001, as codified by Senate Bill 94, MAUCRSA, are hereby incorporated by reference. Definitions appearing in this ordinance are either those that are not covered by state law, pre-date Proposition 64 and the MAUCRSA, or are outside the scope of Section 26001.
(a) “Adult Use” means the use of cannabis for recreational purposes by persons twenty-one (21) years of age or older.
(b) “Canopy” shall have the same meaning as that appearing in Title 3, Section 8000(f) of the California Code of Regulations.
(c) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. (d) “Distributor” shall have the same meaning as that appearing in Section 26070 of the Business and Professions Code.
(e) “Commercial cannabis business” means any business or operation which 254 of 587
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engages in medicinal or adult-use commercial cannabis activity. (f) “Commercial cannabis business permit” means a regulatory permit issued by the City of National City pursuant to this Chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City of National City. The initial permit and annual renewal of a commercial cannabis business is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this Chapter, any regulations adopted by the City of National City governing the commercial cannabis activity at issue, and any other state and local laws and regulations. (g) “Consumption lounge” means an area that is part of the premises of a state-licensed, locally permitted commercial cannabis retail business, and that is designated for consumption of cannabis or cannabis products. (h) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.
(i) “Electronic Smoking Device” means an electronic device that can be used to deliver an inhaled dose of nicotine, or other substances, including any component, part, or accessory of such a device, whether or not sold separately. “Electronic Smoking Device” includes any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. “Electronic Smoking Device” also includes cartridges, cartomizers, e-liquid, smoke juice, tips, atomizers, Electronic Smoking Device batteries, Electronic Smoking Device charges, and any other item specifically designed for the preparation, charging, or use of Electronic Smoking Devices.
(j) “Limited-access area” means an area in which cannabis is stored or held and is only accessible to some licensee and authorized personnel. (k) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application. (l) “Manufacturing site” means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid commercial cannabis business permit for manufacturing from the City of National City and, a valid state license as required for manufacturing of cannabis products. 255 of 587
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(m) “Microbusiness” shall have the same meaning as that contained in Section 26070(a)(3) of the Business and Professions Code. (n) “Non-volatile solvent” means any solvent used in the extraction process that is not a volatile solvent as defined by state law. For purposes of this chapter, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing. (o) “Package” means any container or receptacle used for holding cannabis or cannabis products.
(p) “Patient” or “qualified patient” shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health & Safety Code Section 11362.22.
(q) “Person with an identification card” shall have the meaning given that term by California Health and Safety Code Section 11362.7. (r) “Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and non-manufactured cannabis products.
(s) “Retail Ancillary/Accessory Use” Shall be determined when less than forty percent of a business’s gross floor area is devoted to the use, display, and/or sales of cannabis products and/or paraphernalia and no approved Retail Ancillary/Accessory Use shall be permitted without a licensed and operational primary use.
(t) “Responsible person(s)” shall include but not be limited to a property owner, tenant, manager, permit holder, or any other person with a legal interest in the affected real property and any person in possession of the affected real property.
(u) “Retailer” shall have the same meaning as the definition appearing in Section 26070(a)(1) of the Business and Professions Code. (v) “State license” means a permit or license issued by the State of California, or one of its departments or divisions, under MAUCRSA and any subsequent State of California legislation regarding the same to engage in commercial cannabis activity. A state license alone will not authorize the holder to operate a cannabis business, as state law also requires a permit or other authorization issued by a local jurisdiction.
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(w) “THC” means Tetrahydrocannabinol, the primary active ingredient in cannabis. It is a psychotropic intoxicant causing euphoria and capable of altering human perception and motor skills.
(x) “Topical cannabis” means a product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code.
(y) “Transport” means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by MAUCRSA which may be amended or repealed by any subsequent State of California legislation regarding the same.

Transport can only be performed by licensed distributors and does not include deliveries of cannabis or cannabis products.
(z) “Vape cartridge” means a small attachment to a cannabis e-cigarette or vape pen that is a pre-filled container of cannabis oil. Vape cartridges are sold pre-filled with cannabis concentrates which contain cannabis' active ingredients. The liquid in such products usually contains a propylene glycol or vegetable glycerin-based liquid with flavoring and other chemicals and metals. Many vape cartridges are high in THC, but some contain cannabidiol (CBD, a non-psychoactive cannabinoid used as an analgesic), or terpenes (the chemicals that give cannabis its flavorful tastes and aromas).
(aa) “Vaping” means the action or practice of inhaling and exhaling the vapor produced by an electronic cigarette or similar device. (bb) "Volatile solvent" means a solvent as defined by Health and Safety Code Section 11362.3(b)(3) as of the effective date of this article and as subsequently amended.
(cc) “Youth center” means any public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or similar amusement park facilities. It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on city, county or state parks. This definition shall not include 257 of 587
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any private martial arts, yoga, ballet, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

Section 9.60.060. Authorization to Engage in Commercial Cannabis Business. (a) No person may engage in any authorized commercial cannabis business or in any commercial cannabis activity within the City of National City including cultivation, manufacturing, processing, laboratory testing, transporting, dispensing, distribution, or sale of cannabis or a cannabis product unless the person has the following:
(1) a valid commercial cannabis business permit issued by the City of National City;
(2) a valid business license issued by the City of National City; (3) a mandatory building inspection and all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), the National City Fire Department approvals, Health Department approvals and other zoning and land use permit(s) and approvals.
(4) a valid state license for the commercial cannabis activity corresponding to the business permit issued by the City of National City; (5) requisite approvals from the Planning Division of the National City Community Development Department;
(6) a valid development agreement jointly negotiated with the City of National City;
(7) a valid State of California Seller’s Permit.
(b) Development agreement
(c) No permit shall be issued pursuant to this Chapter for outdoor commercial cannabis cultivation, which is prohibited. It is a violation of this Chapter for any person or entity to engage in any outdoor commercial cannabis cultivation of any kind.
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Section 9.60.070. Location and Design of Cannabis Businesses.

Cannabis businesses permitted by the City of National City to engage in Cultivation, Distribution, Manufacturing, Microbusiness, Testing Labs, or Retail ancillary/Accessory use to the primary activity of the business, for cannabis and cannabis products are subject to the following zoning and locational requirements:
(a) Cultivation, Distribution, Manufacturing, Microbusiness, Testing Labs, or Retail ancillary/ accessory use must be located in the following zones: IL (Light Industrial), IM (Medium Industrial), IH (Heavy Industrial) and must meet all of the requirements for development in these zones (see Section

18.20.020, National City Municipal Code). The cannabis businesses must also meet all of the following distance requirements:
(1) It shall be no closer than six hundred (600) feet from any zoned parcel in the City of National City designated by state law as a sensitive use, and pursuant to Section 9.60.070 (a) (3). The distance measured shall be the horizontal distance measured in a straight line from the property line of those parcels in Section 9.60.070 (a) (3) to the closest property line of the lot on which the cannabis business is located.
(2) Cannabis businesses providing Retail ancillary/accessory use to the primary activity of the business shall be no closer than two hundred fifty (250) feet of any residential parcel in the City of National City as of the date the cannabis business permit is issued. The distance between the cannabis business and the residential parcel shall be measured from the outer boundaries of the residential parcel to the first structure on the property seeking the commercial cannabis permit.
(3) It shall be no closer than six hundred (600) feet from any parcel containing any of the following:

A. A school providing instruction in kindergarten or any grades 1 through 12, (whether public or private, or charter, including pre-school, transitional kindergarten, and K-12);
B. A commercial daycare center licensed by the State, County or City or that is in existence at the time the license is issued, unless the State licensing authority or the City of National City specifies a different radius.

C. A youth center that is in existence at the time the license is issued, unless the State licensing authority or the City of National City specifies a different radius.
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(b) Consumption lounges must be located in the following: CT (Tourist Commercial) West of Interstate 5 and must meet all of the requirements for development in these zones (see Section 18.20.020, National City Municipal Code). They must also comply with the buffer zone requirements contained in 9.60.070(a).
(c) Each proposed cannabis business project shall:
(1) Conform with the City of National City’s general plan, any applicable specific plans, master plans, and design requirements.
(2) Comply with all applicable zoning and related development standards.
(3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.
(4) Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development.
(5) Be served by highways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate. (6) Be provided with adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose.

Section 9.60.080. Maximum Number and Type of Authorized Commercial Cannabis Businesses Permitted.
(a) The number of each type of commercial cannabis business that shall be permitted to operate in the City of National City shall be established by resolution by the City Council.
(b) Section 9.60.080 is only intended to create a process in determining the maximum number of commercial cannabis businesses that may be issued permits to operate in the City of National City under each category. Nothing in this Chapter creates a mandate that the City Council must issue any or all of the commercial cannabis business permits if it is determined that the applicants do not meet the standards which are established in the application requirements, or by further amendments to the application process, or if the City Council upon further deliberation determines that the issuance of any or 260 of 587
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all commercial cannabis business permits will negatively impact the public safety, welfare or other public policy concerns.
(c) Each year following the City Council’s initial award of permits, if any, or at any time in the City Council’s discretion, the City Council may reassess the number of commercial cannabis business permits which are authorized for issuance. The City Council at its discretion, may determine that the number of commercial cannabis permits should stay the same, be expanded, or reduced.

Section 9.60.090. Fees and Charges.
(a) No person may commence or continue any commercial cannabis activity in the City of National City, without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. Fees and charges associated with the operation of a commercial cannabis activity shall be established by resolution of the City Council which may be amended from time to time.
(b) All commercial cannabis businesses authorized to operate under this Chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each commercial cannabis business shall cooperate with the City of National City with respect to any reasonable request to audit the commercial cannabis business’ books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period.

Section 9.60.100. Development Agreement.

Prior to operating in the City of National City and as a condition of issuance of a regulatory permit, the operator of each cannabis facility shall enter into a Development Agreement with the City of National City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this Chapter, including, but not limited to community benefits such as public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.
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Section 9.60.110. Evidence of Cannabis Owner(s), and Representative(s) Background Check Required.
(a) Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorize city authorities to access state and local criminal history information for employment, licensing, or certification purposes, every applicant must undergo a criminal history background check to demonstrate they do not provide “good cause” for denial which include the following:
1) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a violent felony or serious as defined by California Penal Code 667.5 or Section 1192.7(c), or equivalent offenses in other states;
2) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a crime involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in California Penal Code Sections 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states; or 3) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
4) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.
5) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of the illegal use,
possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, not including cannabis-related 262 of 587
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offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.
(b) Evidence of a conviction of any the offenses enumerated in Section

9.60.110(a), absent a Certificate of Rehabilitation, shall be grounds for immediate disqualification of the applicant.
(c) Evidence of a conviction of any the offenses enumerated in Section

9.60.110(a) may be grounds for denial of employment.
(d) Violation of this section may be grounds for immediate suspension of the business’ operating permit. The business operator shall have the right to an appeal pursuant to section 9.60.380.

Section 9.60.120. Persons Prohibited from Holding a Commercial Cannabis License.
(a) Any person, including but not limited to any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit (“applicant”), in which any of the following actions or notices have been issued for non-compliance or if they have been engaging or have engaged in the following activity, shall be prohibited from holding a cannabis commercial license or a cannabis business permit in the City of National City:
(1) The applicant has had a license suspended or revoked by any City, county, City and county or any other state cannabis licensing authority;
(2) Evidence that the applicant is delinquent in payment of federal, state or local commercial taxes and/or fees;
(3) Applicant was conducting (or has conducted) commercial cannabis activity in the City of National City in violation of local and/or state law, not including commercial cannabis-related offenses for which the conviction occurred after the City banned cannabis in 2012.
(4) If any person enters into either a verbal or written agreement to lease, sublease, or any other agreement for any terms of use of the premises granted by a property owner,
commercial broker or any third party, that is in violation of Section 9.60.060 and Section 9.60.150. Any such lease, sublease or agreement shall not contain terms or conditions 263 of 587
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requiring the cannabis permit licensee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the City of National City. In addition, all leases, subleases, or other agreements must be based on a monthly rate.

Section 9.60.130. Persons Prohibited from Employment by a Commercial Cannabis Business.
(a) Any person, including but not limited to any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, in which any of the following actions or notices have been issued for non-compliance or if they have been engaging or have engaged in the following activity, shall be prohibited from employment with a cannabis business permittee in the City of National City:
(1) The person has had a license suspended or revoked by any City, County, or City and County, or any other state cannabis licensing authority;
(2) Evidence that the person is delinquent in payment of federal, state or local commercial taxes and/or fees.
(3) The person was conducting commercial cannabis activity in the City of National City in violation of local and/or state, not including commercial cannabis-related offenses for which the conviction occurred after the city banned cannabis in 2012.

Section 9.60.140. Certification from the Community Development Department.

Prior to submitting any applications for a commercial cannabis business, applicant must first obtain a certification from the City of National City Community Development Department or its designee(s) certifying that the business is located on a site that meets all of the requirements of Sections 9.60.070 and 9.60.230 of this Chapter.

Section 9.60.150. Right to Occupy and to Use Property.

Prior to submitting any applications for a commercial cannabis business, applicant must obtain approval from the owner of the real property where the proposed commercial 264 of 587
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cannabis business will be located (if approved). Applicants are not required to have a signed lease, but a letter from the property owner indicating that:
(a) The property owner is aware of and approves of the use being proposed. (b) The property owner will lease the property to the cannabis related use upon approval of the application.
(c) The property owner understands that licenses for cannabis related uses are for one year and can be revoked at the City of National City’s sole discretion with or without reason.

Property owners are permitted to issue letters detailing such contingent lease agreements for a maximum of two (2) independent applicants.

In the event the proposed location will be leased from the property owner, the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this Chapter and consents to the operation of the commercial cannabis business on the owner’s property.

Section 9.60.160. Application Procedure for a Cannabis Business Permit. (a) The City of National City will establish by administrative policies and procedures promulgated by the City Manager or their designee the procedures to prepare the necessary forms, adopt any necessary rules related to the application process, solicit applications, and conduct initial evaluations of the applicants.
(b) At the time of filing, each applicant shall pay an application fee established by resolution of the City Council, to cover all costs incurred by the City of National City in the application process.
(c) The application procedure process shall include a component on community benefits. Any community benefits that a commercial cannabis business agrees to provide shall be incorporated into the terms and conditions under which the commercial cannabis business will operate with the City of National City’s approval, if and when a Development Agreement is issued. Such terms and conditions shall be in addition to the requirements of this Chapter. The City of National City may establish the procedures for determining community benefits by Resolution and/or by the implementation of administrative policies and procedures promulgated by the City Manager or their designee.
(d) The City of National City’s Reservation of Rights.
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The City of National City reserves the right to reject any or all applications.

Prior to permit issuance, the City of National City may also modify, postpone, or cancel any request for applications, or the entire program under this Chapter, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California state law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City of National City further reserves the right to request and obtain additional information from any candidate submitting an application. (e) Grounds for Rejection of Application.

In addition to a failure to comply with other requirements in this Chapter, an application risks being rejected for any of the following reasons:
(1) The application was received after the designated time and date of the deadline.
(2) The application did not contain the required elements, exhibits, or was not organized in the required format.
(3) The application was considered not fully responsive to the request for a permit application, i.e. was substantially incomplete.

Section 9.60.180. Operations Plan and Standards.

A Certificate of Approval issued by the Planning Division of the National City Community Development Department for a facility must include, as conditions of approval, the operating standards set forth below. In addition, the Certificate of Approval must incorporate by reference an Operations Plan approved by the City Manager or their designee, that implements not only the operating standards set forth in this Chapter, but such additional conditions that the City Manager or their designee finds reasonably necessary to implement this Chapter when considering the location, size and other characteristics of the proposed facility.

Section 9.60.190. Limitations on City’s Liability.

To the fullest extent permitted by law, the City of National City shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis business 266 of 587
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permit, the applicant shall be required to meet all of the following conditions before they can receive the commercial cannabis business permit:
(a) Execute an agreement, in a form approved by the City Attorney or their designee, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City of National City, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City of National City’s issuance of the commercial cannabis business permit, the City of National City’s decision to approve the operation of the commercial cannabis business or activity, the process used by the City of National City in making its decision, or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents. (b) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager, City Attorney, and the City’s Risk Manager or their designee. (c) Reimburse the City of National City for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City of National City may be required to pay as a result of any legal challenge related to the City of National City’s approval of the applicant’s commercial cannabis business permit, or related to the City of National City’s approval of a commercial cannabis activity. The City of National City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.

Section 9.60.200. Restriction on Alcohol & Tobacco Sales. (a) No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the commercial cannabis business.
(b) No person shall cause or permit the sale of tobacco products on or about the premises of the commercial cannabis business.

Section 9.60.225. Restriction on Consumption of Cannabis or other Substances.

No person shall consume cannabis, cannabis products, tobacco or alcohol on the premises of any commercial cannabis business. The sole exception shall be authorized cannabis consumption lounges of which tobacco and alcohol shall also be prohibited. 267 of 587
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Section 9.60.230. General Operating Requirements for all Commercial Cannabis Businesses.
(a) Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the City.

No person under the age of twenty-one (21) shall operate, maintain, be employed at, or be issued a permit for, a commercial cannabis business of any kind.
(b) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. (c) Reporting and Tracking of Product and of Gross Sales with an accounting software system capable of providing point of sale data as well as audit trails or both product and cash, where applicable. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City of National City. The commercial cannabis business shall ensure that such information is compatible with the City of National City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager or their designee prior to being used by the permittee.
(d) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations. (e) Emergency Contact. Each commercial cannabis business shall provide the City Manager or their designee with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. (f) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business 268 of 587
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shall conform to the requirements of the City of National City ordinance, Chapter 18.47, including, but not limited to, seeking the issuance of a City of National City sign permit.
(2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window. (3) Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited. This provision shall not apply to consumption lounges (see Section 9.60.265).
(4) Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of-way. (5) Signage shall not depict any image of cannabis or cannabis products. No banners, flags, billboards or other prohibited signs may be used at any time.
(6) In accordance with state law and regulations or as stipulated in the City of National City regulatory permit, holders of a commercial cannabis business permit shall agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any commercial cannabis business located in the City of National City utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising. This paragraph is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.
(g) Minors.
(1) Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any 269 of 587
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person at a commercial cannabis business who is not at least twenty- one (21) years of age.
(2) Notwithstanding Section 9.60.230(g)(1), persons aged eighteen (18) to twenty (20) years shall be allowed on the premises of a commercial cannabis business if they can produce a physician’s recommendation. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the physician’s recommendation. This provision shall not apply to consumption lounges. Only persons twenty-one (21) and older shall be granted admittance to consumption lounges. Access to persons under twenty-one (21) is prohibited.
(3) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the commercial cannabis business.
(h) Odor Control. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the City Manager or their designee determine is a more effective method or technology:
(1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
(2) An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business. (i) Display of Permit and City Business License. The original copy of the commercial cannabis business permit and the business license issued by the City of National City pursuant to this Chapter shall be posted inside the commercial cannabis business in a location readily visible to the public. 270 of 587
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(j) Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorize city authorities to access state and local criminal history information for employment, licensing, or certification purposes, every applicant must undergo a criminal history background check to demonstrate they do not provide “good cause” for denial as outlined in Section 9.60.110. A fee for the cost of the background investigation, which shall be the actual cost to the City of National City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted. Evidence of a conviction of any of the offenses enumerated in Business and Professions Code Section 26057(b)(4), absent a Certificate of Rehabilitation, shall be grounds for immediate disqualification of the applicant. (k) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. The cannabis business shall notify the National City Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner. (l) Employee Training and Customer Education. Each commercial cannabis operator shall establish minimum training standards for all employees, including but not limited to the variety of products offered for sale, their potency, absorption time if known, and effects of the products. Employees shall educate all customers on these items in an effort to ensure responsible consumption. The retailer shall provide with each purchase educational brochures containing this information. The City Manager, or their designee shall have the discretion to require other training for the business operations as they find necessary under any circumstances.
(m) Security Requirements. A permitted commercial cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the City Manager, or their designee, these security measures shall include, but may not be limited to, all of the following:
(1) Alarm system (perimeter, fire, and panic buttons). (2) Remote monitoring of alarm systems by a security
company licensed by the State of California Bureau of
Security and Investigative Services.
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(3) Perimeter lighting systems (including motion sensors) for after-hours security.
(4) Perimeter security and lightning as approved by the City Manager or their designee.
(5) Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaged in an activity directly related to the permitted operations of the commercial cannabis business.
(6) Establishing limited access areas accessible only to authorized commercial cannabis business personnel.
(7) Except for live growing plants which are being cultivated at a cultivation operation, all cannabis and cannabis products shall be stored in a secured and locked vault or vault
equivalent. All safes and vaults shall be compliant with Underwriter Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.
(8) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur.

All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. Video recordings shall be maintained for a
minimum of ninety (90) days and shall be made available to the City Manager or their designee upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business and shall be capable of enlargement via projection or other means.
(9) Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security 272 of 587
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company licensed by the State of California Bureau of
Security and Investigative Services.
(10) Panic buttons shall be installed in all commercial cannabis businesses with direct notification to the National City Police Department dispatch and shall be configured to immediately alert dispatch for the National City Police Department.
(11) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building in compliance with all federal, state and local laws.
(12) Security personnel shall be on-site 24 hours a day or alternative security as authorized by the City Manager or their designee and must have a verified response security patrol when closed. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, or their designee, with such approval not to be unreasonably withheld. Firearms may be carried by security personnel while they are on duty, if permitted by the San Diego County Sheriff’s Department and authorized by the Chief of Police.
(13) Each commercial cannabis business shall have the
capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
(14) Entrance areas are to be locked at all times and under the control of a designated responsible party that is either; (a) an employee of the commercial cannabis business; or (b) a licensed security professional.
(15) Each commercial cannabis business shall demonstrate to the City Manager or their designee, compliance with the state’s track and trace system for cannabis and cannabis products, as soon as it is operational.
(16) Each commercial cannabis business shall have a
professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the 273 of 587
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inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.
(17) Exterior vegetation shall be planted, altered and
maintained in a fashion that precludes its use as a hiding place for persons on the premises.
(18) Emergency access and emergency evacuation plans
that are in compliance with state and local fire safety standards.
(19) Each commercial cannabis business shall identify a designated security representative/liaison to the City of National City, who shall be reasonably available to meet with the City Manager or their designee regarding any security related measures or and operational issues. The designated security representative/liaison shall, on behalf of the commercial cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the City Manager or their designee upon request that meets the requirements of Section 9.60.230(m).
(20) As part of the application and permitting process each commercial cannabis business shall have a storage
and transportation plan, which describes in detail the
procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.
(21) The commercial cannabis business shall cooperate
with the City of National City whenever the City Manager or their designee makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter.
(22) A commercial cannabis business shall notify the City Manager or their designee within twenty-four (24) hours of discovering any of the following:
(a) Significant discrepancies identified during
inventory. The level of significance shall be
determined by the regulations promulgated by
the City Manager or their designee.
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(b) Diversion, theft, loss, or any criminal activity
involving the commercial cannabis business or
any agent or employee of the commercial
cannabis business.
(c) The loss or unauthorized alteration of records
related to cannabis, customers or employees or
agents of the commercial cannabis business.
(d) Any other breach of security.
(23) Compliance with the foregoing requirements shall be verified by the City Manager or their designee prior to commencing business operations. The City Manager or their designee may supplement these security requirements once operations begin, subject to review by the City Manager or their designee if requested by the business owner.
(24) Retailers and microbusinesses authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this division.
(1) The sale and delivery of cannabis goods shall
not occur through a pass-through window or a
slide-out tray to the exterior of the premises.
(2) Retailers or microbusinesses shall not operate
as or with a drive-in or drive-through at which
cannabis goods are sold to persons within or
about a motor vehicle.
(3) No cannabis goods shall be sold and/or
delivered by any means or method to any
person within a motor vehicle.
(4) All cannabis goods sold by a retail business
shall be contained in child-resistant packaging.
(5) Retailers shall record point-of-sale areas and
areas where cannabis goods are displayed for
sale on the video surveillance system. At each
point-of-sale location, camera placement must
allow for the recording of the facial features of
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any person purchasing or selling cannabis
goods, or any person in the retail area, with
sufficient clarity to determine identity. A retail
licensee or microbusiness licensee who is
engaged in retail sale shall hire or contract for
security personnel who are at least twenty-one
(21) years of age to provide security services for
the licensed retail premises. All security
personnel hired or contracted for by the licensee
shall be licensed by the Bureau of Security and
Investigative Services and shall comply with
Chapters 11.4 and 11.5 of Division 3 of the
Business and Professions Code.
(n) Records and Recordkeeping.
(1) Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any time upon reasonable request of the City of National City, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous twelve (12) month period (or shorter period based upon the timing of the request), provided on a per-month basis.

The statement shall also include gross sales for each month, and all applicable taxes and fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager or their designee(s).
(2) Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager or their designee(s) upon a reasonable request.
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(3) If an applicant operated a cannabis collective, cooperative, or other business prior to the enactment of MAUCRSA, then once a state license is obtained, the commercial cannabis business must maintain such records only to the extent permitted or required by MAUCRSA. (4) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until purchase as set forth MAUCRSA.
(5) Each commercial cannabis business shall allow the City of National City officials to have access to the business’s books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination at any time during the business’s business hours. If not otherwise available, books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the City’s request, unless otherwise stipulated by the City.

The City may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware.

Section 9.60.240. Amendments to General Operating Requirements.

The City Manager or their designee may develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety and welfare.

Section 9.60.250. Additional Operating Requirements for Store Front Retail Facilities.
(a) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen (18) years. If the potential customer is eighteen (18) to twenty (20) years old, retailer shall confirm the customer’s possession of a valid doctor's recommendation and/or Health and Safety Code Section 11362.71 identification card (Medical Cannabis Card). For adult use or recreational purchases, retailers shall verify that all customers are twenty-one (21) years of age or older for the purchase of cannabis or cannabis products. (1) Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least twenty-one (21) years of age. 277 of 587
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(2) Notwithstanding Section 9.60.250 (a)(1), individuals who are at least eighteen (18) years of age and in possession of a valid physician’s recommendation shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician’s recommendation. (3) All individuals seeking access to the commercial cannabis retail business must show their government-issued identification, and, if appropriate, doctor’s recommendation of Medical Cannabis card, in order to gain access into the retailer. These documents must also be shown at the point of sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.
(b) Entrances into the retailer shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area.
(c) Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access. (d) All restroom facilities shall remain locked and under the control of management. (e) Limited Access Areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least twenty-one (21) years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the licensee/permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager or their designee upon request. (f) Microbusiness – Commercial Activity. All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a Type 12- Microbusiness permit shall occur on the same licensed premises. Areas of the premises for manufacturing and cultivation shall be separated from the distribution and retail areas by a wall and all doors between the areas shall remain closed when not in use.
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(g) Operating hours of the Store Front Retailer License shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.
(h) Store Front/Retail Security Requirements. All provisions incorporated within Section 9.60.230(m) of this Chapter (Security Requirements), are directly applicable to and binding on all commercial cannabis businesses, including all Store Front/Retail businesses. Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if permitted by San Diego County Sheriff’s Department and authorized by the Chief of Police.

Section 9.60.260. Additional Operating Requirements for Non-Store Front Retail Facilities.

All Store Front Retailers, Non-Store Front Retailers (delivery) and Microbusinesses which conduct deliveries into or within the City of National City shall be required to obtain a delivery permit from the City of National City in order to conduct retail sales regardless if they are located in the City or another local jurisdiction. (a) Operating hours of the Non-Store Front Retailer License shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week. (b) The commercial Non-Store Front Retailer shall only sell cannabis or cannabis products to a natural person twenty-one (21) years of age or older, or a natural person eighteen (18) years of age or older who possesses a physician’s recommendation for cannabis medical use only. The age and/or any necessary documentation including a valid doctor’s recommendation of each medical customer shall be verified. Doctor recommendations are not to be obtained or provided at the retail location.
(c) The commercial cannabis Non-Store Front Retailer may only have on-site that quantity of cannabis and cannabis products reasonably anticipated to meet the weekly demand for which they may need to be readily available for sale.

Section 9.60.265. Operating Requirements for Consumption Lounges. (a) Any consumption lounge operating within the City of National City must be contained within the premises of a state-licensed retail business or microbusiness, must be locally permitted pursuant to Section 9.60.140, must meet the other requirements of this Chapter, and must be compliant with the following additional requirements:
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(1) Access to the area where cannabis consumption is allowed is restricted to persons twenty-one (21) years of age or older. (2) Cannabis consumption is not visible from any public place or non-age- restricted area.
(3) Sale or consumption of alcohol or tobacco is not allowed on the premises.
(4) Patrons cannot bring cannabis, tobacco or alcohol or other substances into the consumption lounge – they can only consume whatever cannabis they purchase on site.
(b) An applicant must obtain a secondary on-site consumption permit in order for cannabis to be consumed on the premises of an adult-use retail business and shall comply with the following
(1) Cannabis consumption areas shall be well ventilated private areas of the retail establishment and are designed to prevent the flow of smoke to any other area of the establishment.
(c) A commercial cannabis retail business with a retail lounge on its premises shall adopt procedures ensuring that its customers may only gain access to the lounge once they have purchased a product or products from the retail business.
(d) The on-site sale of food is permitted. A Permittee shall comply with laws governing Cannabis Businesses and retail food establishments, including but not limited to the California Retail Food Code.
(e) The owner/operator of the consumption lounge shall be responsible for maintaining dedicated and sufficient staff during operating hours to verify the identity and age of all patrons seeking admittance to the lounge.

Persons under twenty-one (21) shall be denied entry without exception. (f) The owner/operator of the consumption lounge shall be responsible for ensuring that a state-licensed security guard is on duty during operating hours.
(g) The City Manager or his/or designee shall establish conditions for approval for each onsite consumption permit including but not limited to a parking plan, ventilation plan, anti-drugged driving plan, design plan, and set hours of operation. Set hours of operation may only be adjusted by submitting a written request to and obtaining approval from city.
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(h) Cannabis consumption areas shall only provide cannabis to an individual in an amount consistent with personal possession and use limits allowed by the state.

Section 9.60.270. In-City Delivery Vehicle Requirements.

Prior to commencing delivery operations, any locally permitted cannabis retail operation shall provide the following information to the City of National City:
(a) Proof of ownership of the vehicle or a valid lease for all vehicles that will be used to deliver cannabis or cannabis products.
(b) The year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for all vehicles that will be used to deliver cannabis goods.
(c) Proof of insurance as required in Section 9.60.210(b) for any and all vehicles being used to deliver cannabis goods.
(d) The licensee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days.

Section 9.60.275. Out-of-City Delivery Vehicle Requirements.

Prior to commencing operations, a cannabis out of City of National City delivery service shall comply with the following requirements:
(a) Obtain from the City a permit authorizing the delivery of cannabis and cannabis products within the City limits. A copy of this permit shall be retained by all drivers.
(b) The retail business operating the delivery service shall provide the City Manager or their designee, with evidence of a valid state license for a commercial cannabis business on whose authorization the delivery service is performing the delivery function.
(c) The retail business operating the delivery service shall furnish to the City Manager or their designee, the year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.
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Section 9.60.280. Additional Operating Requirements for a Cultivation Facility Operation.
(a) Outdoor Commercial Cultivation is prohibited.
(b) In no case, shall cannabis plants be visible from a public or private road, sidewalk, park or any common public viewing area.
(c) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters.
(d) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(e) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(f) All applicants for a cannabis cultivation permit shall submit to the following in addition to the information generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.
(2) A description of a legal water source, irrigation plan, and projected water use.
(3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes. 282 of 587
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(4) Plan for addressing odor and other public nuisances that may derive from the cultivation site.

Section 9.60.290. Additional Operating Requirements for Distributors. (a) A distributor shall not store non-cannabis goods or non-cannabis accessories that are to be sold to another party on any licensed premises.

Additionally, a distributor shall not distribute non-cannabis goods or non- cannabis accessories at a licensed premise. For the purposes of this section, non-cannabis goods are any goods that do not meet the definition of cannabis goods as defined in Title 16, Section 5000(c) of the California Code of Regulations.
(b) After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing.
(c) A distributor shall ensure that all cannabis goods are stored separately and distinctly from other cannabis goods on the distributor’s premises. (d) The distributor shall ensure that the batch size from which the sample is taken meets the requirements of state law, specifically the testing provisions within the California Code of Regulations.
(e) A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded, and the recording kept available to state and local authorities for a minimum of one hundred eighty (180) days, pursuant to Title 16, Section 5305 of the California Code of Regulations.
(f) A distributor shall not transport cannabis or cannabis products to a licensed retail facility until and unless it has verified that the cannabis or cannabis products have been tested and certified by a testing lab as being in compliance with state health and safety requirements pursuant to Title 16, Sections 5705, 5710 and 5714 of the California Code of Regulations.

Section 9.60.300. Additional Operating Requirements for Testing Labs. (a) Testing Labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100 and shall be subject to state 283 of 587
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and local law. Each Testing Lab shall be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same.
(b) Testing Labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.
(c) All cannabis testing laboratories performing testing shall obtain and maintain ISO/IEC 17025 accreditation as required by the Bureau of Cannabis Control. (d) Testing labs shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the bureau unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the bureau.
(e) Each operator shall ensure that a testing laboratory employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing required by state law and that the testing laboratory employee transports the sample to the testing laboratory.
(f) Except as provided by state law, a testing laboratory shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with state law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. (g) A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A testing lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received.

Section 9.60.310. Additional Operating Requirements for Cannabis Manufacturing:

Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products.
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Cannabis manufacturing shall only be permitted pursuant to state law, this chapter and or any subsequently created manufacturing state license as defined in MAUCRSA, and may be permitted to operate only within those zone districts as defined in Section

9.60.070 of this Chapter and Section 18.20.020 of the City of National City Municipal Code.

Any compressed gases used in the manufacturing process shall not be stored on any property within the City of National City in containers that exceeds the amount which is approved by the National City Fire Department and authorized by the regulatory permit.

Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of tanks as authorized by the National City Fire Department on the property at any time. Additional operating requirements include:
(a) Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, ethanol and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts. (b) If an extraction process uses a professional grade closed loop CO₂ gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in Section 9.60.310 (f). The CO₂ must be of at least ninety-nine percent purity.
(c) Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.
(d) Certification from an engineer licensed by the State of California, or by a certified industrial hygienist, must be provided to the Community Development Department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:
(1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM) 285 of 587
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(e) The certification document must contain the signature and stamp of the professional engineer or industrial hygienist and serial number of the extraction unit being certified.
(f) Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes. (g) Cannabis Manufacturing Facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.
(h) Cannabis Manufacturing Facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace. (i) Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely.
(j) Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested.

Section 9.60.320. Additional Operating Requirements for a Microbusiness- Cultivation Facility.

Microbusinesses shall comply with all local operating requirements under this Chapter and all requirements imposed by state law that apply to the specific activities operating under the umbrella of the individual microbusiness.
(a) Outdoor Commercial Cultivation is prohibited.
(b) In no case, shall cannabis plants be visible from a public or private road, sidewalk, park or any common public viewing area.
(c) Commercial cannabis cultivation which is permitted in the City of National City shall not exceed 10,000 square feet of canopy space permitted by state law as part of a microbusiness license.
(d) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water 286 of 587
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quality, woodland and riparian habitat protection, agricultural discharges, and similar matters.
(e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(g) All applicants for a microbusiness permit which includes cannabis cultivation shall submit to the following in addition to the information generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.
(2) A description of a legal water source, irrigation plan, and projected water use.
(3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes. (4) Plan for addressing odor and other public nuisances that may derive from the cultivation site.

Section 9.60.330. Permissible Delivery Locations and Customers.

All retail businesses conducting cannabis delivery operations within the City of National City are subject to the following requirements:
(a) A licensed cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.
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(b) A licensed cannabis business shall comply with all requirements of state and local law pertaining to the cannabis permit and all subsequent policies, procedures and regulations which may be amended by the City Manager from time to in order to enforce this Chapter.
(c) Any kiosk, i-Pad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, other than a retail location permitted by the city, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this Chapter.

Section 9.60.340. Expiration of Commercial Cannabis Business Permits.

Each commercial cannabis business permit issued pursuant to this Chapter shall expire twelve (12) months after the date of its issuance. Commercial cannabis permits may be renewed as provided in Section 9.60.350.

Section 9.60.350. Renewal of Cannabis Business Permits. (a) An application for renewal of a commercial cannabis business permit shall be filed at least sixty (60) calendar days prior to the expiration date of the current permit.
(b) The renewal application shall contain all the information required for new applications.
(c) The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City of National City to administer the program created under this Chapter.
(d) An application for renewal of a commercial cannabis business permit shall be rejected if any of the following exists:
(1) The application is filed less than sixty (60) days before its expiration. (2) The commercial cannabis business permit is suspended or revoked at the time of the application.
(3) The commercial cannabis business has not been in regular and continuous operation in the four (4) months prior to the renewal application.
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(4) The commercial cannabis business has failed to conform to the requirements of this Chapter, or of any regulations adopted pursuant to this Chapter, or is in violation of any other state or local laws and regulations.
(5) The permittee fails or is unable to renew its State of California license.
(6) If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations, and the state has determined that the violation is grounds for termination or revocation of the commercial cannabis business permit.
(e) The City Manager or their designee is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager or their designee is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the City Manager or their designee shall be handled pursuant to Sections 9.60.380 through 9.60.400.

(f) If a renewal application is rejected, a person may file a new application pursuant to this Chapter no sooner than one (1) year from the date of the rejection.

Section 9.60.360. Revocation or Suspension of Permits.

Commercial cannabis business permits may be revoked or suspended for any violation of any relevant law and/or any rule, regulation and/or standard adopted pursuant to this Chapter, including any amendments to those standards, or pursuant to any policy, procedure or regulation in this Chapter or in the National City Municipal Code.

Section 9.60.370. Effect of State License Suspension, Revocation, or Termination.

Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the City of National City, until the State of California, or its respective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City of National City. A cannabis business owner wishing to recommence operations shall re- 289 of 587
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apply for a local permit at such time as it can demonstrate that the grounds for revocation of the license by the state no longer exist, or that the underlying deficiency has otherwise been cured.

Section 9.60.380. Appeals.

Section 9.60.390. Written Request for Appeal.
(a) Within ten (10) calendar days after the date of a decision of the City Manager or their designee(s) to revoke, suspend or deny a permit, or to add conditions to a permit, an applicant may appeal such action by filing a written appeal with the City Clerk setting forth the reasons why the decision was not proper. Reasons shall be stated with specificity. (b) At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the City Council.

Section 9.60.400. Appeal Hearing Process.
(a) Upon receipt of the written appeal, the City Clerk shall schedule the matter for a hearing before a hearing officer.
(b) The appeal shall be set within a reasonable time after the date of receipt of the written appeal, but in no event shall be set later than thirty (30) City of National City working days from the date of the receipt of the written appeal.

The hearing shall be held no later than ninety (90) City of National City working days from the date of the receipt of the written appeal. The City shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing. The appellant can waive the right to have their appeal set no later than thirty (30) City of National City working days and/or held no later than ninety (90) City of National City working days from the date of the receipt of the written appeal.
(c) At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. The applicant may have the assistance of counsel or may appear by counsel. 290 of 587
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(d) After the City Manager or their designee has presented the statement of facts upon which the determination was made, the burden to show that the action taken by the City Manager or their designee was not based on substantial evidence, or was arbitrary, capricious, or unjustified shall be upon the appealing party.
(e) If the applicant, or counsel representing the applicant, fails to appear at the hearing, the appeal is abandoned and the action of the City Manager or their designee is final.
(f) The hearing officer may uphold the denial, suspension, or revocation, may allow that which has been denied, reinstate that which has been suspended or revoked, reverse or modify any other decision of the City Manager or their designee that is the subject of the appeal.
(g) If the decision of the hearing officer is to deny the appeal, then that decision shall be final and conclusive and shall constitute the exhaustion of the administrative remedy.
(h) A copy of the written decision of the hearing officer specifying findings of fact and the reasons for the decision shall be given to the applicant or the designated representative and the City Manager or their designee within thirty (30) calendar days of the hearing. If the hearing officer determines the complexity of the case required additional time in which to render a decision, the time in which to render the decision is automatically extended another thirty (30) calendar days. Service of the decision shall govern the commencement of any period of limitation for judicial review under Code of Civil Procedure Section 1094.6 or 1084.8, whichever is applicable.

Section 9.60.420. Transfer of Cannabis Business Permit. (a) The owner of a cannabis business permit shall not transfer ownership or control of the permit, within the first year of obtaining said permit, to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager or their designee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager or their designee in accordance with all provisions of this Chapter (as though the transferee were applying for an original cannabis business permit). The proposed transferee’s application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee) and an acknowledgment that any labor agreements in existence at the time of transfer will be upheld by transferee. 291 of 587
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(b) The City Manager or their designee shall conduct a hearing to determine whether the transferee passed the background check required for permittees and meets all other requirements of this Chapter. (c) Commercial cannabis business permits issued through the grant of a transfer by the City Manager or their designee shall be valid for a period of one year beginning on the day the City Manager or their designee approves the transfer of the permit. Before the transferee’s permit expires, the transferee shall apply for a renewal permit in the manner required by this Chapter.
(d) Changes in ownership of a permittee’s business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 25% of the original ownership), must be approved by the City Manager or their designee through the transfer process contained in this subsection (a). Failure to comply with this provision is grounds for permit revocation.
(e) A permittee may change the form of business entity without applying to the City Manager or their designee for a transfer of permit, provided that either:

1. The membership of the new business entity is substantially similar to original permit holder business entity (at least 25% of the membership is identical), or
Although a transfer is not required in this circumstance, the permit holder is required to notify the City Manager or their designee in writing of the change within ten (10) days of the change. Failure to comply with this provision is grounds for permit revocation.
(f) No commercial cannabis business permit may be transferred when the City Manager or their designee has notified the permittee that the permit has been or may be suspended or revoked.
(g) Any attempt to transfer a commercial cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit.

Section 9.60.430. Change in Location; Updated Permit Application. (a) Any time the dispensing, cultivation, manufacturing, transportation and distribution location specified in the regulatory permit is changed, the applicant shall re-file a permit application with the City Manager or their 292 of 587
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designee(s) containing the updated information. The process and the fees for this re-registration shall be the same as the process and fees set forth for registration in Sections 9.60.420(c) and 9.60.160.
(b) Within fifteen (15) calendar days of any other change in the information provided in the permit application form or any change in status of compliance with the provisions of this Chapter, including any change in the commercial cannabis business ownership or management members, the applicant shall file an updated permit application form with the City Manager or their designee(s) for review along with a application amendment fee, as set forth in Sections 9.60.420(c) and 9.60.160).

Section 9.60.440. Promulgation of Regulations, Standards and Other Legal Duties. (a) In addition to any regulations adopted by the City Council, the City Manager or their designee is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of commercial cannabis business permits, the ongoing operation of commercial cannabis businesses and the City’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Chapter. (b) Regulations will be published on the City’s website. (c) Regulations promulgated by the City Manager shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager or their designee.
(d) Testing Labs, Distribution facilities, Out of City Delivery Services and Special Events shall be subject to state law and shall be subject to additional City regulations as determined from time to time as more regulations are developed under Section 9.60.020 of this Chapter and any subsequent State of California legislation regarding the same.

Section 9.60.450. Community Relations.
(a) Each facility must provide the City Manager or designee with the name, telephone number, and email address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the facility or refer members of the public who may have any concerns or complaints regarding the operation of the facility. Each facility must also provide the above information to all businesses and residences located within 100 feet of the facility.
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(b) During the first year of operation of a facility authorized under this Chapter, the owner, manager, and community relations representative from each such facility must attend a monthly meeting with the City Manager or their designee to discuss costs, benefits and other community issues arising as a result of implementation of the Certificate of Approval authorized by this Chapter. After the first year of operation, the owner, manager, and community relations representative from each such facility must meet with the City Manager or their designee when and as requested by the City Manager or their designee, with reasonable notice.
.

Section 9.60.460. Fees Deemed Debt to the City of National City.

The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City of National City that is recoverable via an authorized administrative process as set forth in the City ordinance, or in any court of competent jurisdiction.

Section 9.60.470. Responsibility for Violations.

All Responsible persons pursuant to this Chapter shall be responsible for all violations of the laws of the State of California or of the regulations and/or the ordinances of the City of National City, whether committed by the property owner, permittee or any employee or agent of the property owner or permittee, which violations occur in or about the premises of the commercial cannabis business whether or not said violations occur within the permit holder’s presence.

Section 9.60.480. Inspection and Enforcement.
(a) The City Manager, or their designee charged with enforcing the provisions of the City of National City Municipal Code, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, to check for compliance with all state and local laws and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law.
(b) It is unlawful for any responsible persons, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law.
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(c) The City Manager, or their designee charged with enforcing the provisions of this Chapter may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of National City shall be logged, recorded, and maintained in accordance with established procedures by the City of National City’s City Manager or their designee or these regulations.

Section 9.60.490. Compliance with State Regulations.

It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of National City in compliance with all provisions MAUCRSA and any subsequent state legislation.

Section 9.60.500. Violations Declared a Public Nuisance.

Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a public nuisance and may be enjoined civilly or administratively. In addition, and to the extent not expressly provided elsewhere in this code, it is unlawful and a misdemeanor to maintain a public nuisance.

Section 9.60.510. Each Violation a Separate Offense.

Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City of National City.

Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive relief, any permit issued pursuant to this Chapter being deemed null and void, disgorgement and payment to the City for any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity. The City of National City may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the commercial cannabis business or persons related to, or associated with, the commercial cannabis activity.

Section 9.60.520. Serious Violations Grounds for Immediate Suspension of License or Permit.

The City shall retain the authority, pursuant to Chapter 1.12, to address serious violations that rise to the level of posing an imminent threat to the public health, safety or welfare of the City, by immediately suspending the commercial cannabis license or permit issued by the City with a stop order. Such action by the City may be appealed pursuant to Sections

9.60.380 to 9.60.400 of this Chapter.
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Section 9.60.530. Criminal Penalties.

Each and every violation of the provisions of this Chapter may in the discretion of the District Attorney or City Attorney be prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars ($1,000) or imprisonment in the County jail for a period of not more than twelve (12) months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense.

Section 9.60.540. Remedies Cumulative and Not Exclusive. (a) The remedies provided herein are not to be construed as exclusive remedies. The City of National City is authorized to pursue any proceedings or remedies provided by law.
(b) The City Attorney may, in addition to, or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings for the abatement, removal, or enjoinment thereof, in any manner provided by law,
PASSED and ADOPTED this 4TH day of May, 2021.
__________________________
Alejandra Sotelo-Solis, Mayor
ATTEST:
_____________________________
Luz Molina, City Clerk
APPROVED AS TO FORM:
_____________________________
Charles E. Bell Jr., City Attorney
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ORDINANCE NO. 2021 -
NATIONAL CITY ORDINANCE ADDING CHAPTER 9.60 TO THE NATIONAL CITY

MUNICIPAL CODE REGULATION OF COMMERCIAL CANNABIS ACTIVITY Section 9.60.010. Purpose and Intent.

Section 9.60.020. Legal Authority.

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of the MAUCRSA, and any subsequent state legislation and/or regulations regarding same, the City of National City is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City of National City to all commercial cannabis activity.
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Section 9.60.030. Cannabis Cultivation and Commercial Cannabis Activities Prohibited Unless Specifically Authorized by this Chapter.

Section 9.60.040. Compliance with State and Local Laws.

Section 9.60.050. Definitions.

All definitions pertaining to cannabis regulation that appear in Business and Professions Code Section 26001, as codified by Senate Bill 94, MAUCRSA, are hereby incorporated by reference. Definitions appearing in this ordinance are either those that are not covered by state law, pre-date Proposition 64 and the MAUCRSA, or are outside the scope of Section 26001.
(a) “Adult Use” means the use of cannabis for recreational purposes by persons twenty-one (21) years of age or older.
(b) “Canopy” shall have the same meaning as that appearing in Title 3, Section 8000(f) of the California Code of Regulations.
(c) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. (d) “Distributor” shall have the same meaning as that appearing in Section 26070 of the Business and Professions Code.
(e) “Commercial cannabis business” means any business or operation which 298 of 587
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engages in medicinal or adult-use commercial cannabis activity. (f) “Commercial cannabis business permit” means a regulatory permit issued by the City of National City pursuant to this Chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City of National City. The initial permit and annual renewal of a commercial cannabis business is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this Chapter, any regulations adopted by the City of National City governing the commercial cannabis activity at issue, and any other state and local laws and regulations. (g) “Consumption lounge” means an area that is part of the premises of a state-licensed, locally permitted commercial cannabis retail business, and that is designated for consumption of cannabis or cannabis products. (h) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.
(i) “Electronic Smoking Device” means an electronic device that can be used to deliver an inhaled dose of nicotine, or other substances, including any component, part, or accessory of such a device, whether or not sold separately. “Electronic Smoking Device” includes any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. “Electronic Smoking Device” also includes cartridges, cartomizers, e-liquid, smoke juice, tips, atomizers, Electronic Smoking Device batteries, Electronic Smoking Device charges, and any other item specifically designed for the preparation, charging, or use of Electronic Smoking Devices.
(j) “Limited-access area” means an area in which cannabis is stored or held and is only accessible to some licensee and authorized personnel. (k) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application. (l) “Manufacturing site” means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid commercial cannabis business permit for manufacturing from the City of National City and, a valid state license as required for manufacturing of cannabis products. 299 of 587
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(m) “Microbusiness” shall have the same meaning as that contained in Section 26070(a)(3) of the Business and Professions Code. (n) “Non-volatile solvent” means any solvent used in the extraction process that is not a volatile solvent as defined by state law. For purposes of this chapter, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing. (o) “Package” means any container or receptacle used for holding cannabis or cannabis products.
(p) “Patient” or “qualified patient” shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health & Safety Code Section 11362.22.
(q) “Person with an identification card” shall have the meaning given that term by California Health and Safety Code Section 11362.7. (r) “Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and non-manufactured cannabis products.
(s) “Retail Ancillary/Accessory Use” Shall be determined when less than forty percent of a business’s gross floor area is devoted to the use, display, and/or sales of cannabis products and/or paraphernalia and no approved Retail Ancillary/Accessory Use shall be permitted without a licensed and operational primary use.
(t) “Responsible person(s)” shall include but not be limited to a property owner, tenant, manager, permit holder, or any other person with a legal interest in the affected real property and any person in possession of the affected real property.
(u) “Retailer” shall have the same meaning as the definition appearing in Section 26070(a)(1) of the Business and Professions Code. (v) “State license” means a permit or license issued by the State of California, or one of its departments or divisions, under MAUCRSA and any subsequent State of California legislation regarding the same to engage in commercial cannabis activity. A state license alone will not authorize the holder to operate a cannabis business, as state law also requires a permit or other authorization issued by a local jurisdiction.
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(w) “THC” means Tetrahydrocannabinol, the primary active ingredient in cannabis. It is a psychotropic intoxicant causing euphoria and capable of altering human perception and motor skills.
(x) “Topical cannabis” means a product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code.
(y) “Transport” means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting commercial cannabis activity authorized by MAUCRSA which may be amended or repealed by any subsequent State of California legislation regarding the same.

Transport can only be performed by licensed distributors and does not include deliveries of cannabis or cannabis products.
(z) “Vape cartridge” means a small attachment to a cannabis e-cigarette or vape pen that is a pre-filled container of cannabis oil. Vape cartridges are sold pre-filled with cannabis concentrates which contain cannabis' active ingredients. The liquid in such products usually contains a propylene glycol or vegetable glycerin-based liquid with flavoring and other chemicals and metals. Many vape cartridges are high in THC, but some contain cannabidiol (CBD, a non-psychoactive cannabinoid used as an analgesic), or terpenes (the chemicals that give cannabis its flavorful tastes and aromas).
(aa) “Vaping” means the action or practice of inhaling and exhaling the vapor produced by an electronic cigarette or similar device. (bb) "Volatile solvent" means a solvent as defined by Health and Safety Code Section 11362.3(b)(3) as of the effective date of this article and as subsequently amended.
(cc) “Youth center” means any public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or similar amusement park facilities. It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on city, county or state parks. This definition shall not include 301 of 587
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any private martial arts, yoga, ballet, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children or a location which is primarily utilized as an administrative office or facility for youth programs or organizations.

Section 9.60.060. Authorization to Engage in Commercial Cannabis Business. (a) No person may engage in any authorized commercial cannabis business or in any commercial cannabis activity within the City of National City including cultivation, manufacturing, processing, laboratory testing, transporting, dispensing, distribution, or sale of cannabis or a cannabis product unless the person has the following:
(1) a valid commercial cannabis business permit issued by the City of National City;
(2) a valid business license issued by the City of National City; (3) a mandatory building inspection and all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes but is not limited to obtaining any required building permit(s), the National City Fire Department approvals, Health Department approvals and other zoning and land use permit(s) and approvals.
(4) a valid state license for the commercial cannabis activity corresponding to the business permit issued by the City of National City; (5) requisite approvals from the Planning Division of the National City Community Development Department;
(6) a valid development agreement jointly negotiated with the City of National City;
(7) a valid State of California Seller’s Permit.
(b) Development agreement
(c) No permit shall be issued pursuant to this Chapter for outdoor commercial cannabis cultivation, which is prohibited. It is a violation of this Chapter for any person or entity to engage in any outdoor commercial cannabis cultivation of any kind.
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Section 9.60.070. Location and Design of Cannabis Businesses.

C. A youth center that is in existence at the time the license is issued, unless the State licensing authority or the City of National City specifies a different radius.
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(b) Consumption lounges must be located in the following: CT (Tourist Commercial) West of Interstate 5 and must meet all of the requirements for development in these zones (see Section 18.20.020, National City Municipal Code). They must also comply with the buffer zone requirements contained in 9.60.070(a).
(c) Each proposed cannabis business project shall:
(1) Conform with the City of National City’s general plan, any applicable specific plans, master plans, and design requirements.
(2) Comply with all applicable zoning and related development standards.
(3) Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.
(4) Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development.
(5) Be served by highways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate. (6) Be provided with adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose.

Section 9.60.080. Maximum Number and Type of Authorized Commercial Cannabis Businesses Permitted.
(a) The number of each type of commercial cannabis business that shall be permitted to operate in the City of National City shall be established by resolution by the City Council.
(b) Section 9.60.080 is only intended to create a process in determining the maximum number of commercial cannabis businesses that may be issued permits to operate in the City of National City under each category. Nothing in this Chapter creates a mandate that the City Council must issue any or all of the commercial cannabis business permits if it is determined that the applicants do not meet the standards which are established in the application requirements, or by further amendments to the application process, or if the City Council upon further deliberation determines that the issuance of any or 304 of 587
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all commercial cannabis business permits will negatively impact the public safety, welfare or other public policy concerns.
(c) Each year following the City Council’s initial award of permits, if any, or at any time in the City Council’s discretion, the City Council may reassess the number of commercial cannabis business permits which are authorized for issuance. The City Council at its discretion, may determine that the number of commercial cannabis permits should stay the same, be expanded, or reduced.

Section 9.60.100. Development Agreement.

Prior to operating in the City of National City and as a condition of issuance of a regulatory permit, the operator of each cannabis facility shall enter into a Development Agreement with the City of National City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this Chapter, including, but not limited to community benefits such as public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.
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Section 9.60.110. Evidence of Cannabis Owner(s), and Representative(s) Background Check Required.
(a) Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorize city authorities to access state and local criminal history information for employment, licensing, or certification purposes, and authorize access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every applicant must undergo a criminal history background check to demonstrate they do not provide “good cause” for denial which include the following: for a Certificate of Approval (including owners, managers, supervisors and any individual who will be participating in the direction, control, or management of the cannabis business must submit fingerprints and other information deemed necessary by the City Manager or their designee for a background check by the National City Police Department or a third party. A fee for the cost of the background investigation, which shall be the actual cost to the City of National City to conduct the background investigation as it deems necessary and appropriate, including City of National City staff time and costs, shall be paid at the time the person submits for the background check.
(b) The criminal background check must at a minimum identify the following:
1) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a violent felony or serious as defined by California Penal Code 667.5 or Section 1192.7(c), or equivalent offenses in other states;
2) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a crime involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in California Penal Code Sections 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states; or 3) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, 306 of 587
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furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
4) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of a felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.
5) Whether the owners, managers, supervisors and any
individual who will be participating in the direction, control, or management has ever been convicted of the illegal use,
possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, not including cannabis-related offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.
(b) Evidence of a conviction of any the offenses enumerated in Section

9.60.110(a)(b) , absent a Certificate of Rehabilitation, shall be grounds for immediate disqualification of the applicant. may be grounds for denial of employment.
(c) Evidence of a conviction of any the offenses enumerated in Section

Section 9.60.120. Persons Prohibited from Holding a Commercial Cannabis License.
(a) Any person, including but not limited to any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit (“applicant”), in which any of the following actions or notices have been issued for non-compliance or if they have been engaging or have engaged in the following activity, shall be prohibited from holding a cannabis commercial license or a cannabis business permit in the City of National City:
(1) The applicant has had a license suspended or revoked by any City, county, City and county or any other state cannabis licensing authority;
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(2) Evidence that the applicant is delinquent in payment of federal, state or local commercial taxes and/or fees;
(3) Applicant was conducting (or has conducted) commercial cannabis activity in the City of National City in violation of local and/or state law, not including commercial cannabis-related offenses for which the conviction occurred after the City banned cannabis in 2012.
(4) If any person enters into either a verbal or written agreement to lease, sublease, or any other agreement for any terms of use of the premises granted by a property owner,
commercial broker or any third party, that is in violation of Section 9.60.060 and Section 9.60.150. Any such lease, sublease or agreement shall not contain terms or conditions requiring the cannabis permit licensee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the City of National City. In addition, all leases, subleases, or other agreements must be based on a monthly rate.

Section 9.60.130. Persons Prohibited from Employment by a Commercial Cannabis Business.
(a) Any person, including but not limited to any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, in which any of the following actions or notices have been issued for non-compliance or if they have been engaging or have engaged in the following activity, shall be prohibited from employment with a cannabis business permittee in the City of National City:
(1) The person has had a license suspended or revoked by any City, County, or City and County, or any other state cannabis licensing authority;
(2) Evidence that the person is delinquent in payment of federal, state or local commercial taxes and/or fees.
(3) The person was conducting commercial cannabis activity in the City of National City in violation of local and/or state, not including 308 of 587
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commercial cannabis-related offenses for which the conviction occurred after the city banned cannabis in 2012.

Section 9.60.140. Certification from the Community Development Department.

Section 9.60.150. Right to Occupy and to Use Property.

Prior to submitting any applications for a commercial cannabis business, applicant must obtain approval from the owner of the real property where the proposed commercial cannabis business will be located (if approved). Applicants are not required to have a signed lease, but a letter from the property owner indicating that:
(a) The property owner is aware of and approves of the use being proposed. (b) The property owner will lease the property to the cannabis related use upon approval of the application.
(c) The property owner understands that licenses for cannabis related uses are for one year and can be revoked at the City of National City’s sole discretion with or without reason.

Property owners are permitted to issue letters detailing such contingent lease agreements for a maximum of two (2) independent applicants.

Section 9.60.160. Application Procedure for a Cannabis Business Permit. (a) The City of National City will establish by administrative policies and procedures promulgated by the City Manager or their designee the procedures to prepare the necessary forms, adopt any necessary rules related to the application process, solicit applications, and conduct initial evaluations of the applicants.
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(b) At the time of filing, each applicant shall pay an application fee established by resolution of the City Council, to cover all costs incurred by the City of National City in the application process.
(c) The application procedure process shall include a component on community benefits. Any community benefits that a commercial cannabis business agrees to provide shall be incorporated into the terms and conditions under which the commercial cannabis business will operate with the City of National City’s approval, if and when a Development Agreement is issued. Such terms and conditions shall be in addition to the requirements of this Chapter. The City of National City may establish the procedures for determining community benefits by Resolution and/or by the implementation of administrative policies and procedures promulgated by the City Manager or their designee.
(d) The City of National City’s Reservation of Rights.

The City of National City reserves the right to reject any or all applications.

Section 9.60.180. Operations Plan and Standards.
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A Certificate of Approval issued by the Planning Division of the National City Community Development Department for a facility must include, as conditions of approval, the operating standards set forth below. In addition, the Certificate of Approval must incorporate by reference an Operations Plan approved by the City Manager or their designee, that implements not only the operating standards set forth in this Chapter, but such additional conditions that the City Manager or their designee finds reasonably necessary to implement this Chapter when considering the location, size and other characteristics of the proposed facility.

Section 9.60.190. Limitations on City’s Liability.

To the fullest extent permitted by law, the City of National City shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to this Chapter or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any commercial cannabis business permit, the applicant shall be required to meet all of the following conditions before they can receive the commercial cannabis business permit:
(a) Execute an agreement, in a form approved by the City Attorney or their designee, agreeing to indemnify, defend (at applicant’s sole cost and expense), and hold the City of National City, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City of National City’s issuance of the commercial cannabis business permit, the City of National City’s decision to approve the operation of the commercial cannabis business or activity, the process used by the City of National City in making its decision, or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents. (b) Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager, City Attorney, and the City’s Risk Manager or their designee. (c) Reimburse the City of National City for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City of National City may be required to pay as a result of any legal challenge related to the City of National City’s approval of the applicant’s commercial cannabis business permit, or related to the City of National City’s approval of a commercial cannabis activity. The City of National City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.
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Section 9.60.200. Restriction on Alcohol & Tobacco Sales. (a) No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages on or about the premises of the commercial cannabis business.
(b) No person shall cause or permit the sale of tobacco products on or about the premises of the commercial cannabis business.

Section 9.60.225. Restriction on Consumption of Cannabis or other Substances.

Section 9.60.230. General Operating Requirements for all Commercial Cannabis Businesses.
(a) Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the City.

No person under the age of twenty-one (21) shall operate, maintain, be employed at, or be issued a permit for, a commercial cannabis business of any kind.
(b) No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time. (c) Reporting and Tracking of Product and of Gross Sales with an accounting software system capable of providing point of sale data as well as audit trails or both product and cash, where applicable. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City of National City. The commercial cannabis business shall ensure that such information is compatible with the City of National City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be 312 of 587
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approved and authorized by the City Manager or their designee prior to being used by the permittee.
(d) All cannabis and cannabis products sold, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State and local regulations. (e) Emergency Contact. Each commercial cannabis business shall provide the City Manager or their designee with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. (f) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of the City of National City ordinance, Chapter 18.47, including, but not limited to, seeking the issuance of a City of National City sign permit.
(2) No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window. (3) Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited. This provision shall not apply to consumption lounges (see Section 9.60.265).
(4) Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of-way. (5) Signage shall not depict any image of cannabis or cannabis products. No banners, flags, billboards or other prohibited signs may be used at any time.
(6) In accordance with state law and regulations or as stipulated in the City of National City regulatory permit, holders of a commercial cannabis business permit shall agree that, as an express and 313 of 587
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ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any commercial cannabis business located in the City of National City utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising. This paragraph is not intended to place limitations on the ability of a commercial cannabis business to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways.
(g) Minors.
(1) Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty- one (21) years of age.
(2) Notwithstanding Section 9.60.230(g)(1), persons aged eighteen (18) to twenty (20) years shall be allowed on the premises of a commercial cannabis business if they can produce a physician’s recommendation. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the physician’s recommendation. This provision shall not apply to consumption lounges. Only persons twenty-one (21) and older shall be granted admittance to consumption lounges. Access to persons under twenty-one (21) is prohibited.
(3) The entrance to the commercial cannabis business shall be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of the commercial cannabis business.
(h) Odor Control. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and 314 of 587
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maintain the following equipment, or any other equipment which the City Manager or their designee determine is a more effective method or technology:
(1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
(2) An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business. (i) Display of Permit and City Business License. The original copy of the commercial cannabis business permit and the business license issued by the City of National City pursuant to this Chapter shall be posted inside the commercial cannabis business in a location readily visible to the public. (j) Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes City of National City authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, and any individual who will be participating in the direction, control, or management in a commercial cannabis business must submit fingerprints and other information deemed necessary by the City Manager or their designee for a background check by the City of National City Police Department. Pursuant to California Penal Sections 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from employment, licensing or certification based on specific criminal conduct on the part of the subject of the record.

No person shall be issued a permit to operate a commercial cannabis business unless they have first cleared the background check, as determined by the City Manager or their designee, as required by this section. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorize city authorities to access state and local criminal history information for employment, licensing, or certification purposes, every applicant must undergo a criminal history background check to demonstrate they do not provide “good cause” for denial as outlined in Section 9.60.110. A fee for the cost of the background investigation, which shall be the actual cost to the City of National City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis business permit is submitted. Evidence of a conviction of any of 315 of 587
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the offenses enumerated in Business and Professions Code Section 26057(b)(4), absent a Certificate of Rehabilitation, shall be grounds for immediate disqualification of the applicant.
(k) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. The cannabis business shall notify the National City Police Department if anyone continues to loiter around the building or premises after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner. (l) Employee Training and Customer Education. Each commercial cannabis operator shall establish minimum training standards for all employees, including but not limited to the variety of products offered for sale, their potency, absorption time if known, and effects of the products. Employees shall educate all customers on these items in an effort to ensure responsible consumption. The retailer shall provide with each purchase educational brochures containing this information. The City Manager, or their designee shall have the discretion to require other training for the business operations as they find necessary under any circumstances.
(m) Security Requirements. A permitted commercial cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the City Manager, or their designee, these security measures shall include, but may not be limited to, all of the following:
(1) Alarm system (perimeter, fire, and panic buttons). (2) Remote monitoring of alarm systems by a security
company licensed by the State of California Bureau of
Security and Investigative Services.
(3) Perimeter lighting systems (including motion sensors) for after-hours security.
(4) Perimeter security and lightning as approved by the City Manager or their designee.
(5) Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaged in an activity directly related to the permitted operations of the commercial cannabis business.
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(6) Establishing limited access areas accessible only to authorized commercial cannabis business personnel.
(7) Except for live growing plants which are being cultivated at a cultivation operation, all cannabis and cannabis products shall be stored in a secured and locked vault or vault
equivalent. All safes and vaults shall be compliant with Underwriter Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.
(8) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur.

All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. Video recordings shall be maintained for a
minimum of ninety (90) days and shall be made available to the City Manager or their designee upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business and shall be capable of enlargement via projection or other means.
(9) Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the State of California Bureau of
Security and Investigative Services.
(10) Panic buttons shall be installed in all commercial cannabis businesses with direct notification to the National City Police Department dispatch and shall be configured to immediately alert dispatch for the National City Police Department.
(11) Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the 317 of 587
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interior of the building in compliance with all federal, state and local laws.
(12) Security personnel shall be on-site 24 hours a day or alternative security as authorized by the City Manager or their designee and must have a verified response security patrol when closed. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, or their designee, with such approval not to be unreasonably withheld. Firearms may be carried by security personnel while they are on duty, if permitted by the San Diego County Sheriff’s Department and authorized by the Chief of Police.
(13) Each commercial cannabis business shall have the
capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
(14) Entrance areas are to be locked at all times and under the control of a designated responsible party that is either; (a) an employee of the commercial cannabis business; or (b) a licensed security professional.
(15) Each commercial cannabis business shall demonstrate to the City Manager or their designee, compliance with the state’s track and trace system for cannabis and cannabis products, as soon as it is operational.
(16) Each commercial cannabis business shall have a
professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.
(17) Exterior vegetation shall be planted, altered and
maintained in a fashion that precludes its use as a hiding place for persons on the premises.
(18) Emergency access and emergency evacuation plans
that are in compliance with state and local fire safety standards.
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(19) Each commercial cannabis business shall identify a designated security representative/liaison to the City of National City, who shall be reasonably available to meet with the City Manager or their designee regarding any security related measures or and operational issues. The designated security representative/liaison shall, on behalf of the commercial cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the City Manager or their designee upon request that meets the requirements of Section 9.60.230(m).
(20) As part of the application and permitting process each commercial cannabis business shall have a storage
and transportation plan, which describes in detail the
procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.
(21) The commercial cannabis business shall cooperate
with the City of National City whenever the City Manager or their designee makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this Chapter.
(22) A commercial cannabis business shall notify the City Manager or their designee within twenty-four (24) hours of discovering any of the following:
(a) Significant discrepancies identified during
inventory. The level of significance shall be
determined by the regulations promulgated by
the City Manager or their designee.
(b) Diversion, theft, loss, or any criminal activity
involving the commercial cannabis business or
any agent or employee of the commercial
cannabis business.
(c) The loss or unauthorized alteration of records
related to cannabis, customers or employees or
agents of the commercial cannabis business.
(d) Any other breach of security.
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(23) Compliance with the foregoing requirements shall be verified by the City Manager or their designee prior to commencing business operations. The City Manager or their designee may supplement these security requirements once operations begin, subject to review by the City Manager or their designee if requested by the business owner.
(24) Retailers and microbusinesses authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this division.
(1) The sale and delivery of cannabis goods shall
not occur through a pass-through window or a
slide-out tray to the exterior of the premises.
(2) Retailers or microbusinesses shall not operate
as or with a drive-in or drive-through at which
cannabis goods are sold to persons within or
about a motor vehicle.
(3) No cannabis goods shall be sold and/or
delivered by any means or method to any
person within a motor vehicle.
(4) All cannabis goods sold by a retail business
shall be contained in child-resistant packaging.
(5) Retailers shall record point-of-sale areas and
areas where cannabis goods are displayed for
sale on the video surveillance system. At each
point-of-sale location, camera placement must
allow for the recording of the facial features of
any person purchasing or selling cannabis
goods, or any person in the retail area, with
sufficient clarity to determine identity. A retail
licensee or microbusiness licensee who is
engaged in retail sale shall hire or contract for
security personnel who are at least twenty-one
(21) years of age to provide security services for
the licensed retail premises. All security
personnel hired or contracted for by the licensee
shall be licensed by the Bureau of Security and
Investigative Services and shall comply with
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Chapters 11.4 and 11.5 of Division 3 of the
Business and Professions Code.
(n) Records and Recordkeeping.
(1) Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any time upon reasonable request of the City of National City, each commercial cannabis business shall file a sworn statement detailing the number of sales by the commercial cannabis business during the previous twelve (12) month period (or shorter period based upon the timing of the request), provided on a per-month basis.

The statement shall also include gross sales for each month, and all applicable taxes and fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager or their designee(s).
(2) Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager or their designee(s) upon a reasonable request.
(3) If an applicant operated a cannabis collective, cooperative, or other business prior to the enactment of MAUCRSA, then once a state license is obtained, the commercial cannabis business must maintain such records only to the extent permitted or required by MAUCRSA. (4) All commercial cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until purchase as set forth MAUCRSA.
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(5) Each commercial cannabis business shall allow the City of National City officials to have access to the business’s books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination at any time during the business’s business hours. If not otherwise available, books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the City’s request, unless otherwise stipulated by the City.

The City may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware.

Section 9.60.240. Amendments to General Operating Requirements.

Section 9.60.250. Additional Operating Requirements for Store Front Retail Facilities.
(a) Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen (18) years. If the potential customer is eighteen (18) to twenty (20) years old, retailer shall confirm the customer’s possession of a valid doctor's recommendation and/or Health and Safety Code Section 11362.71 identification card (Medical Cannabis Card). For adult use or recreational purchases, retailers shall verify that all customers are twenty-one (21) years of age or older for the purchase of cannabis or cannabis products. (1) Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least twenty-one (21) years of age. (2) Notwithstanding Section 9.60.250 (a)(1), individuals who are at least eighteen (18) years of age and in possession of a valid physician’s recommendation shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician’s recommendation. (3) All individuals seeking access to the commercial cannabis retail business must show their government-issued identification, and, if appropriate, doctor’s recommendation of Medical Cannabis card, in order to gain access into the retailer. These documents must also be shown at the point of sale station at the time of purchase. Doctor 322 of 587
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recommendations are not to be obtained or provided at the retail location.
(b) Entrances into the retailer shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area.
(c) Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access. (d) All restroom facilities shall remain locked and under the control of management. (e) Limited Access Areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least twenty-one (21) years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the licensee/permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager or their designee upon request. (f) Microbusiness – Commercial Activity. All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a Type 12- Microbusiness permit shall occur on the same licensed premises. Areas of the premises for manufacturing and cultivation shall be separated from the distribution and retail areas by a wall and all doors between the areas shall remain closed when not in use.
(g) Operating hours of the Store Front Retailer License shall be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.
(h) Store Front/Retail Security Requirements. All provisions incorporated within Section 9.60.230(m) of this Chapter (Security Requirements), are directly applicable to and binding on all commercial cannabis businesses, including all Store Front/Retail businesses. Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if permitted by San Diego County Sheriff’s Department and authorized by the Chief of Police.
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Section 9.60.260. Additional Operating Requirements for Non-Store Front Retail Facilities.

Section 9.60.265. Operating Requirements for Consumption Lounges. (a) Any consumption lounge operating within the City of National City must be contained within the premises of a state-licensed retail business or microbusiness, must be locally permitted pursuant to Section 9.60.140, must meet the other requirements of this Chapter, and must be compliant with the following additional requirements:
(1) Access to the area where cannabis consumption is allowed is restricted to persons twenty-one (21) years of age or older. (2) Cannabis consumption is not visible from any public place or non-age- restricted area.
(3) Sale or consumption of alcohol or tobacco is not allowed on the premises.
(4) Patrons cannot bring cannabis, tobacco or alcohol or other substances into the consumption lounge – they can only consume whatever cannabis they purchase on site.
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(b) An applicant must obtain a secondary on-site consumption permit in order for cannabis to be consumed on the premises of an adult-use retail business and shall comply with the following
(1) Cannabis consumption areas shall be well ventilated private areas of the retail establishment and are designed to prevent the flow of smoke to any other area of the establishment.
(c) A commercial cannabis retail business with a retail lounge on its premises shall adopt procedures ensuring that its customers may only gain access to the lounge once they have purchased a product or products from the retail business.
(d) The on-site sale of food is permitted. A Permittee shall comply with laws governing Cannabis Businesses and retail food establishments, including but not limited to the California Retail Food Code.
(e) The owner/operator of the consumption lounge shall be responsible for maintaining dedicated and sufficient staff during operating hours to verify the identity and age of all patrons seeking admittance to the lounge.

Persons under twenty-one (21) shall be denied entry without exception. (f) The owner/operator of the consumption lounge shall be responsible for ensuring that a state-licensed security guard is on duty during operating hours.
(g) The City Manager or his/or designee shall establish conditions for approval for each onsite consumption permit including but not limited to a parking plan, ventilation plan, anti-drugged driving plan, design plan, and set hours of operation. Set hours of operation may only be adjusted by submitting a written request to and obtaining approval from city.
(h) Cannabis consumption areas shall only provide cannabis to an individual in an amount consistent with personal possession and use limits allowed by the state.

Section 9.60.270. In-City Delivery Vehicle Requirements.

Prior to commencing delivery operations, any locally permitted cannabis retail operation shall provide the following information to the City of National City:
(a) Proof of ownership of the vehicle or a valid lease for all vehicles that will be used to deliver cannabis or cannabis products.
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(b) The year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for all vehicles that will be used to deliver cannabis goods.
(c) Proof of insurance as required in Section 9.60.210(b) for any and all vehicles being used to deliver cannabis goods.
(d) The licensee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days.

Section 9.60.275. Out-of-City Delivery Vehicle Requirements.

Section 9.60.280. Additional Operating Requirements for a Cultivation Facility Operation.
(a) Outdoor Commercial Cultivation is prohibited.
(b) In no case, shall cannabis plants be visible from a public or private road, sidewalk, park or any common public viewing area.
(c) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters.
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(d) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(e) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(f) All applicants for a cannabis cultivation permit shall submit to the following in addition to the information generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.
(2) A description of a legal water source, irrigation plan, and projected water use.
(3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes. (4) Plan for addressing odor and other public nuisances that may derive from the cultivation site.

Additionally, a distributor shall not distribute non-cannabis goods or non- cannabis accessories at a licensed premise. For the purposes of this section, non-cannabis goods are any goods that do not meet the definition of cannabis goods as defined in Title 16, Section 5000(c) of the California Code of Regulations.
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(b) After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing.
(c) A distributor shall ensure that all cannabis goods are stored separately and distinctly from other cannabis goods on the distributor’s premises. (d) The distributor shall ensure that the batch size from which the sample is taken meets the requirements of state law, specifically the testing provisions within the California Code of Regulations.
(e) A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded, and the recording kept available to state and local authorities for a minimum of one hundred eighty (180) days, pursuant to Title 16, Section 5305 of the California Code of Regulations.
(f) A distributor shall not transport cannabis or cannabis products to a licensed retail facility until and unless it has verified that the cannabis or cannabis products have been tested and certified by a testing lab as being in compliance with state health and safety requirements pursuant to Title 16, Sections 5705, 5710 and 5714 of the California Code of Regulations.

Section 9.60.300. Additional Operating Requirements for Testing Labs. (a) Testing Labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100 and shall be subject to state and local law. Each Testing Lab shall be subject to additional regulations as determined from time to time as more regulations are developed under this Chapter and any subsequent State of California legislation regarding the same.
(b) Testing Labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.
(c) All cannabis testing laboratories performing testing shall obtain and maintain ISO/IEC 17025 accreditation as required by the Bureau of Cannabis Control. (d) Testing labs shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the bureau 328 of 587
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unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the bureau.
(e) Each operator shall ensure that a testing laboratory employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing required by state law and that the testing laboratory employee transports the sample to the testing laboratory.
(f) Except as provided by state law, a testing laboratory shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with state law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol. (g) A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A testing lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received.

Section 9.60.310. Additional Operating Requirements for Cannabis Manufacturing:

Edibles and Other Cannabis Products; Sale or Distribution of Edible and Other Cannabis Products.

Cannabis manufacturing shall only be permitted pursuant to state law, this chapter and or any subsequently created manufacturing state license as defined in MAUCRSA, and may be permitted to operate only within those zone districts as defined in Section

9.60.070 of this Chapter and Section 18.20.020 of the City of National City Municipal Code.

Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of tanks as authorized by the National City Fire Department on the property at any time. Additional operating requirements include:
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(a) Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, ethanol and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts. (b) If an extraction process uses a professional grade closed loop CO₂ gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in Section 9.60.310 (f). The CO₂ must be of at least ninety-nine percent purity.
(c) Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.
(d) Certification from an engineer licensed by the State of California, or by a certified industrial hygienist, must be provided to the Community Development Department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:
(1) The American Society of Mechanical Engineers (ASME); (2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM) (e) The certification document must contain the signature and stamp of the professional engineer or industrial hygienist and serial number of the extraction unit being certified.
(f) Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes. (g) Cannabis Manufacturing Facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.
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(h) Cannabis Manufacturing Facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace. (i) Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely.
(j) Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested.

Section 9.60.320. Additional Operating Requirements for a Microbusiness- Cultivation Facility.

Microbusinesses shall comply with all local operating requirements under this Chapter and all requirements imposed by state law that apply to the specific activities operating under the umbrella of the individual microbusiness.
(a) Outdoor Commercial Cultivation is prohibited.
(b) In no case, shall cannabis plants be visible from a public or private road, sidewalk, park or any common public viewing area.
(c) Commercial cannabis cultivation which is permitted in the City of National City shall not exceed 10,000 square feet of canopy space permitted by state law as part of a microbusiness license.
(d) Cannabis cultivation shall be conducted in accordance with state and local laws related to land conversion, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters.
(e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure 331 of 587
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the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(g) All applicants for a microbusiness permit which includes cannabis cultivation shall submit to the following in addition to the information generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.
(2) A description of a legal water source, irrigation plan, and projected water use.
(3) Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes. (4) Plan for addressing odor and other public nuisances that may derive from the cultivation site.

Section 9.60.330. Permissible Delivery Locations and Customers.

All retail businesses conducting cannabis delivery operations within the City of National City are subject to the following requirements:
(a) A licensed cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.
(b) A licensed cannabis business shall comply with all requirements of state and local law pertaining to the cannabis permit and all subsequent policies, procedures and regulations which may be amended by the City Manager from time to in order to enforce this Chapter.
(c) Any kiosk, i-Pad, tablet, smartphone, fixed location or technology platform, whether manned or unmanned, other than a retail location permitted by the city, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this Chapter.
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Section 9.60.340. Expiration of Commercial Cannabis Business Permits.

Section 9.60.350. Renewal of Cannabis Business Permits. (a) An application for renewal of a commercial cannabis business permit shall be filed at least sixty (60) calendar days prior to the expiration date of the current permit.
(b) The renewal application shall contain all the information required for new applications.
(c) The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City of National City to administer the program created under this Chapter.
(d) An application for renewal of a commercial cannabis business permit shall be rejected if any of the following exists:
(1) The application is filed less than sixty (60) days before its expiration. (2) The commercial cannabis business permit is suspended or revoked at the time of the application.
(3) The commercial cannabis business has not been in regular and continuous operation in the four (4) months prior to the renewal application.
(4) The commercial cannabis business has failed to conform to the requirements of this Chapter, or of any regulations adopted pursuant to this Chapter, or is in violation of any other state or local laws and regulations.
(5) The permittee fails or is unable to renew its State of California license.
(6) If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations, and the state has determined that the violation 333 of 587
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is grounds for termination or revocation of the commercial cannabis business permit.
(e) The City Manager or their designee is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager or their designee is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare. Appeals from the decision of the City Manager or their designee shall be handled pursuant to Sections 9.60.380 through 9.60.400.

(f) If a renewal application is rejected, a person may file a new application pursuant to this Chapter no sooner than one (1) year from the date of the rejection.

Section 9.60.360. Revocation or Suspension of Permits.

Section 9.60.370. Effect of State License Suspension, Revocation, or Termination.

Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the City of National City, until the State of California, or its respective department or division, reinstates or reissues the State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City of National City. A cannabis business owner wishing to recommence operations shall re- apply for a local permit at such time as it can demonstrate that the grounds for revocation of the license by the state no longer exist, or that the underlying deficiency has otherwise been cured.

Section 9.60.380. Appeals.

Unless specifically provided elsewhere to the contrary, whenever an appeal is provided for in this Chapter from a decision of the City Manager or their designee, the appeal shall be conducted as prescribed in this Chapter.
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Section 9.60.390. Written Request for Appeal.
(a) Within ten (10) calendar days after the date of a decision of the City Manager or their designee(s) to revoke, suspend or deny a permit, or to add conditions to a permit, an applicant may appeal such action by filing a written appeal with the City Clerk setting forth the reasons why the decision was not proper. Reasons shall be stated with specificity. (b) At the time of filing the appellant shall pay the designated appeal fee, established by resolution of the City Council.

The hearing shall be held no later than ninety (90) City of National City working days from the date of the receipt of the written appeal. The City shall notify the appellant of the time and location at least ten (10) days prior to the date of the hearing. The appellant can waive the right to have their appeal set no later than thirty (30) City of National City working days and/or held no later than ninety (90) City of National City working days from the date of the receipt of the written appeal.
(c) At the hearing, the appellant may present any information they deem relevant to the decision appealed. The formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. The applicant may have the assistance of counsel or may appear by counsel. (d) After the City Manager or their designee has presented the statement of facts upon which the determination was made, the burden to show that the action taken by the City Manager or their designee was not based on substantial evidence, or was arbitrary, capricious, or unjustified shall be upon the appealing party.
(e) If the applicant, or counsel representing the applicant, fails to appear at the hearing, the appeal is abandoned and the action of the City Manager or their designee is final.
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(f) The hearing officer may uphold the denial, suspension, or revocation, may allow that which has been denied, reinstate that which has been suspended or revoked, reverse or modify any other decision of the City Manager or their designee that is the subject of the appeal.
(g) If the decision of the hearing officer is to deny the appeal, then that decision shall be final and conclusive and shall constitute the exhaustion of the administrative remedy.
(h) A copy of the written decision of the hearing officer specifying findings of fact and the reasons for the decision shall be given to the applicant or the designated representative and the City Manager or their designee within thirty (30) calendar days of the hearing. If the hearing officer determines the complexity of the case required additional time in which to render a decision, the time in which to render the decision is automatically extended another thirty (30) calendar days. Service of the decision shall govern the commencement of any period of limitation for judicial review under Code of Civil Procedure Section 1094.6 or 1084.8, whichever is applicable.

Section 9.60.420. Transfer of Cannabis Business Permit. (a) The owner of a cannabis business permit shall not transfer ownership or control of the permit, within the first year of obtaining said permit, to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager or their designee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager or their designee in accordance with all provisions of this Chapter (as though the transferee were applying for an original cannabis business permit). The proposed transferee’s application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee) and an acknowledgment that any labor agreements in existence at the time of transfer will be upheld by transferee. (b) The City Manager or their designee shall conduct a hearing to determine whether the transferee passed the background check required for permittees and meets all other requirements of this Chapter. (c) Commercial cannabis business permits issued through the grant of a transfer by the City Manager or their designee shall be valid for a period of one year beginning on the day the City Manager or their designee approves the transfer of the permit. Before the transferee’s permit expires, the transferee shall apply for a renewal permit in the manner required by this Chapter.
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(d) Changes in ownership of a permittee’s business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 25% of the original ownership), must be approved by the City Manager or their designee through the transfer process contained in this subsection (a). Failure to comply with this provision is grounds for permit revocation.
(e) A permittee may change the form of business entity without applying to the City Manager or their designee for a transfer of permit, provided that either:

Section 9.60.430. Change in Location; Updated Permit Application. (a) Any time the dispensing, cultivation, manufacturing, transportation and distribution location specified in the regulatory permit is changed, the applicant shall re-file a permit application with the City Manager or their designee(s) containing the updated information. The process and the fees for this re-registration shall be the same as the process and fees set forth for registration in Sections 9.60.420(c) and 9.60.160.
(b) Within fifteen (15) calendar days of any other change in the information provided in the permit application form or any change in status of compliance with the provisions of this Chapter, including any change in the commercial cannabis business ownership or management members, the applicant shall file an updated permit application form with the City Manager or their designee(s) for review along with a application 337 of 587
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amendment fee, as set forth in Sections 9.60.420(c) and 9.60.160).

Section 9.60.450. Community Relations.
(a) Each facility must provide the City Manager or designee with the name, telephone number, and email address of an on-site community relations or staff person or other representative to whom the city can provide notice if there are operating problems associated with the facility or refer members of the public who may have any concerns or complaints regarding the operation of the facility. Each facility must also provide the above information to all businesses and residences located within 100 feet of the facility.
(b) During the first year of operation of a facility authorized under this Chapter, the owner, manager, and community relations representative from each such facility must attend a monthly meeting with the City Manager or their designee to discuss costs, benefits and other community issues arising as a result of implementation of the Certificate of Approval authorized by this Chapter. After the first year of operation, the owner, manager, and community relations representative from each such facility must meet with the City Manager or their designee when and as requested by the City Manager or their designee, with reasonable notice.
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.

Section 9.60.460. Fees Deemed Debt to the City of National City.

Section 9.60.470. Responsibility for Violations.

Section 9.60.480. Inspection and Enforcement.
(a) The City Manager, or their designee charged with enforcing the provisions of the City of National City Municipal Code, or any provision thereof, may enter the location of a commercial cannabis business at any time, without notice, to check for compliance with all state and local laws and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of State law.
(b) It is unlawful for any responsible persons, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law.
(c) The City Manager, or their designee charged with enforcing the provisions of this Chapter may enter the location of a commercial cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City of National City shall be logged, recorded, and maintained in accordance with established procedures by the City of National City’s City Manager or their designee or these regulations. 339 of 587
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Section 9.60.490. Compliance with State Regulations.

It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of National City in compliance with all provisions MAUCRSA and any subsequent state legislation.

Section 9.60.500. Violations Declared a Public Nuisance.

Section 9.60.510. Each Violation a Separate Offense.

Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the City of National City.

Section 9.60.520. Serious Violations Grounds for Immediate Suspension of License or Permit.

9.60.380 to 9.60.400 of this Chapter.

Section 9.60.530. Criminal Penalties.

Section 9.60.540. Remedies Cumulative and Not Exclusive. 340 of 587
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(a) The remedies provided herein are not to be construed as exclusive remedies. The City of National City is authorized to pursue any proceedings or remedies provided by law.
(b) The City Attorney may, in addition to, or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings for the abatement, removal, or enjoinment thereof, in any manner provided by law,
PASSED and ADOPTED this 4TH day of May, 2021.
__________________________
Alejandra Sotelo-Solis, Mayor
ATTEST:
_____________________________
Luz Molina, City Clerk
APPROVED AS TO FORM:
_____________________________
Charles E. Bell Jr., City Attorney
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The following page(s) contain the backup material for Agenda Item: Notice of Decision – Planning Commission approval of a Conditional Use Permit for beer and wine sales at an existing restaurant (Teriyaki Sun) located at 4 N. Euclid Avenue, Suite A. (Applicant: Jose Armando Lua) (Case File 2021-24 CUP) (Planning)
Please scroll down to view the backup material.
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CITY OF NATIONAL CITY, CALIFORNIA

COUNCIL AGENDA STATEMENT

ITEM TITLE:

PREPARED BY:

DEPARTMENT:

PHONE:

EXPLANATION:

APPROVED BY:

AGENDA ITEM NO. MEETING DATE:

ENVIRONMENTAL REVIEW:

FINANCIAL STATEMENT: APPROVED: Finance
ORDINANCE: INTRODUCTION:

ACCOUNT NO.

STAFF RECOMMENDATION:

BOARD / COMMISSION RECOMMENDATION:

ATTACHMENTS:
___________________
________________
April 5, 2022
Notice of Decision – Planning C ommission approval of a Conditional Use Permit for beer and wine sales at an existing restaurant (Teriyaki Sun) located at 4 N. Euclid Avenue, Suite A. (Applicant: Jose Armando Lua) (Case File 2021-24 CUP)
Community Development
The applicant is requesting to se ll beer and wine for on-site consumption (ABC Type 41), in conjunction with food sales, at an existing 2,600 square-foot r estaurant (Teriyaki Sun) in the National City Plaza shopping center. Proposed hours of operation are 10: 00 a.m. to 9:00 p.m. Sunday through Thursday and 10:00 a.m. to 9:30 p.m. Friday and Saturday. There is indoor seating for 68.

The Planning Commission conducted a public hearing on March 7, 2022. The Commission voted to recommend approval of the request based on the attached finding s and recommended Conditions of Approval.

The attached Planning Commission staff report describes the proposal in detail.

1. Overhead 4. Reduced Plans

2. Planning Commission Staff Repor t 5. PowerPoint slides from PC meeting

3. Resolution No. 2022-06
This is not a project under CEQA and is therefore not subject to environmental review. CCR15378; PRC 21065.

FINAL ADOPTION:

APPROVED: ________________ MIS
Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed.

The Planning Commission recommended approval of the Conditional Use Permit.

Ayes: Dela Paz, Natividad, Roman, Sanchez, Sendt, Valenzuela, Yamane 619-336-4224
David Welch
Director of Community Development
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ATTACHMENT 1
2021
-24 CUP – 4 N. Euclid Ave., Ste. A – Overhead
N
1 344 of 587
Item no. 3
Mar
ch 7, 2022

COMMUNITY DEVELOPMENT DEPARTMENT - PLANNING DIVISION
1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950

PLANNING COMMISSION STAFF REPORT
Tit
le: PUBLIC HEARING – CONDITIONAL USE PERM IT FOR

BEER AND WINE SALES AT AN EXISTING RESTAURANT
(TERIYAKI SUN) LOCATED AT 4 NORTH EUCLID
AVENUE, SUITE A.

Cas
e File No.: 2021-24 CUP
Locat
ion: Northwest corner of Division Street and North Euclid Avenue Asse
ssor’s Parcel Nos.: 552-283-11
St
aff report by: David Welch – Associate Planner
Appl
icant: Jose Armando Lua
Zoning d
esignation: MXD-1 (Minor Mixed-Use District)
Adj
acent use and zoning:

Nor
th: Single-family residential / RS-2 (Small Lot Residential) Eas
t: Gas station and 7-11 across North Euclid Avenue / MXD-1 Sout
h: Single-family residential across Division Street / RS-2 Wes
t: Single-family residential / RS-2
Env
ironmental review: Not a project per California Environmental Quality Act (CEQA) as defined in Section 15378
St
aff recommendation: Approve
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Staff Recommendation
Staff recommends approval of the request for beer and wine sales , subject to the attached recommended conditions. The sale of beer and wine is a conditionally- allowed use in the Minor Mixed-Use District (MXD-1) zone and would be accessory to food sales at the restaurant.

Executive Summary
The suite is an existing restaurant (Teriyaki Sun). The restaurant proposes to sell beer and wine, in conjunction with food sales, from 10:00 a.m. to 9:00 p.m. Sunday through Thursday and 10 a.m. to 9:30 p.m. Friday and Saturday. Teriyaki Sun is an existing family-run Japanese restaurant.

Site Characteristics
The project site is within a shopping center located on the northwest corner of Division Street and North Euclid Avenue. The property is approximately six acres in size. The suite occupied by the restaurant is 2,600 square feet in size. There is no outdoor seating area proposed or existing for the restaurant. The shopping center has adequate parking and permits have been submitted recently for ADA improvements and new signs.

Commercial businesses in the area are mostly contained within the National City Plaza shopping center with a gas station and 7- 11 also located across North Euclid Street. Planet Fitness has recently moved into the largest suite on the property. Teriyaki Sun is on the southwestern corner of the property and faces both the parking area and Division Street. All other surrounding properties are single-family residential and a solid, six -foot high masonry wall separates the shopping center from neighboring residences. The property is in census tract 119.02, which includes the area from East 4
th Street north to the City border,
between Interstate 805 and North Euclid Avenue, and from East 8 th Street north to the City border east of North Euclid Avenue. The attached census tract map shows the location of the subject tract (Attachment 6).

Proposed Use
The applicant is proposing to sell beer and wine in conjunction with on-si te food sales in the 2,600 square-foot restaurant (ABC Type 41 license). Proposed hours of operation are 10:00 a.m. to 9:00 p.m. Sunday through Thursday and 10 a.m. to 9:30 p.m. Friday and Saturday. The seating area is comprised of 1,695 square feet that is all located indoors. There is room for 68 patrons. No live entertainment is proposed.
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Analysis
Section 18.30.050 of the Land Use Code allows for on- site alcohol sales with an approved Conditional Use Permit (CUP) . Additional requirements for alcohol CUPs include expanded notification, a community meeting, and distance requirements.

Mailing – All property owners and occupants within a distance of 660 feet are required to be notified of a public hearing for al cohol-related CUP applications.

Notice of this public hearing was sent to 437 occupants and owners.

Community Meeti ng – Pursuant to Section 18.30.050 (C) of the National City Zoning Code, a community meeting was held Wednesday, February 16, 2022 from 10:15 a .m. to 11: 45 a.m. at the subject restaurant. The meeting advertisement is attached (Attachment 8); t here was one attendee from the community. The applicant stated that the same occupants that were notified of the Planning Commission meeting were notified of the community meeting. The local resident that attended was concerned about the business having loud music long into the evening. No live music is proposed with this CUP application and the latest the restaurant proposes to be open is 9:30 p.m.

Distance Requirements – Chapter 18.030.050 (D) of the National City Zoning Code requires a 660-foot distance from any public school; there is a school within 660 feet of the site; however, restaurants with greater than 30 percent of their area devoted to seating are exempt from this distance requirement. The property in question has approximately 65 percent of its floor area devoted to seat ing, in excess of the minimum requirement.

Alcohol Sales Concentration/Location
Per the California Department of Alcoholic Beverage Control ( ABC), there are no current on-site sale lice nses in census tract 119.02 where a maximum of eight are recommended, meaning that the census tract is not considered by ABC to be over-saturated with regard to alcohol sales outlets.

Police Department (PD)
The ABC Risk Assessment provided by PD allocated a total of 10 points, which places it in the Low Risk category (Low Risk is considered 12 points or less ). PD provided a risk assessment, which is included as Attachment 7. The application is in a census tract with a high crime rate. The Police Department rates businesses where the sale of alcohol occurs in a high crime rate census tract as a 4 347 of 587
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“three” (on a scale of 1 to 3) on their rating system, which usually indicates a higher risk. The business is in a census tract with a high crime rate. However, because of the business type and lack of alcohol licenses in the census tract, the overall points are lower than normally seen.

Institute for Public Strategies (IPS)
No comments were received from IPS as of the writing of this report, although they usually recommend at least the need for Responsible Beverage Sales and Service (RBSS) training for all staff. This is a standard condition of approval and is included with this report.

Findings for Approval
The Municipal Code contains six required findings for CUPs as follows:

1. The proposed use is allowable within the applicable zoning district pursuant to a Conditional Use Permit and complies with all other applicable provisions of the Land Use Code.

The use is allowable within the MXD-1 zone pursuant to a CUP and the proposed use meets the required guidelines in the Land Use Code for alcohol sales, as discussed in the staff report.

2. The proposed use is consistent with the General Plan and any applicable specific plan.

Alcohol sales are permitted, subject to a CUP, by the Land Use Code, which is consistent with the General Plan. There is no Specific Plan in the area.

3. The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity.

No expansion of the building is proposed. The proposal involves an existing commercial space, which was previously analyzed for traffic impacts when it was constructed.

4. The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints.
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The proposed alcohol sales would be incidental to the primary use of food sales. A restaurant currently exists on the site.

5. Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located.

The proposed use will be subject to conditions that limit the sale of beer and wine as well as the hours that it will be available. B eer and wine will only be availab le with the sale of food. In addition, all staff members serving alcohol are required to receive RBSS training.

6. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA).

The project is not considered a project under CEQA, as no development is proposed. In addition, the proposed use is similar to other commercial uses in the area, which are permitted in the MXD-1 zone.

The following two findings are also included with alcohol CUPs:

7. The proposed use is dee med essential and desirable to the public convenience or necessity.

Alcohol sales will contribute to the viability of the restaurant, an allowed use in the MXD-1 zone.

8. Based on findings 1 through 7 above, public convenience and necessity will be served by a proposed use of the property for the on-site sales of alcoholic beverages pursuant to law.

Conditions of Approval
Standard Conditions of Approval have been included with this permit as well as conditions specific to on- site alcohol sales per Council Policy 707 (hours of operation, employee training, and accessory sales, etc.).

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National City City CouncilApril 5, 2022

National City City Council
April 5, 2022