Jonatan Cvetko February 22, 2023 at 11:19 AM
Time Sensitive - Cannabis Grant Program
To: Brandy Forbes
Hi Brandy,
NI CC 915/23
When you have a moment can you please give me a call, I want to connect with you about a grant program that Redondo would qualify for with regards to our cannabis program, and the deadline is coming up soon so I want to make sure we don't miss it.
Thanks,
Jonatan
Cell: 310.686.0663
Brandy Forbes March 6, 2023 at 1:12 PM
BF
RE: Time Sensitive - Cannabis Grant Program
To: Jonatan Cvetko
Jonatan,
Thank you for forwarding. We are already discussing this with our grant writer to see if it will work for us.
Also, I received your voicemails and appreciate your continued interest. At this time we don't foresee that the City Manager will be working with the cannabis steering committee, but it he decides to re-engage that group, I will be sure to reach out.
Thanks,
Brandy Forbes
Community Development Director
Department of Community Development
415 Diamond Street
Redondo Beach, CA 90277
(310) 318-0637 x2200
[email protected]
www.redondo.org
----Original Message----.
From: Jonatan Cvetko <[email protected]>
Sent: Wednesday, February 22, 2023 11:20 AM
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.
See More from Jonatan Cvetko
Please note that email correspondence with the City of Redondo Beach, along with attachments, may be subject to the California Public Records Act, and therefore may be subject to disclosure unless otherwise exempt. The City of Redondo Beach shall not be responsible for any claims, losses or damages resulting from the use of digital data that may be contained in this email.
Hdl® Companies
June 8, 2022
Mike Witzansky
City Manager
City of Redondo Beach
415 Diamond Street
Redondo Beach, CA 90277
Re: Application Review Process
Dear Mr. Witzansky,
As you are aware, HdL Companies was previously under contract with the City of Fairfield to review applications for retail cannabis businesses in the City. The City received 14 applications, all of which were to be reviewed and scored by HdL in accordance with the merit-based criteria approved by the City.
After the reviews and ranking had been provided to the City, HdL became aware of certain irregularities in the scores. HdL immediately notified the City and after further review, we determined that the scoring irregularities could not be rectified, and that the application process had been compromised as a result. As a gesture of good faith, we volunteered to terminate our agreement with the City and to fully refund all fees paid to HdL for the project.
We have determined that the scoring irregularities were the result of human error and that there was no intent to influence the outcome to the benefit or detriment of any of the applicants. HdL Companies works solely with public agencies and has no private-sector clients in the cannabis industry. All members of our cannabis team are required to sign confidentiality and non-disclosure agreements and must verify that they have no economic conflicts of interests.
We hope that this letter helps to explain the issues that occurred with the City of Fairfield. While we in no way wish to downplay or make excuses for this project, we want to assure you that we have taken steps to ensure that such issues will not occur again.
Please feel free to contact me if you have any questions.
Sincerely,
Andy Nickerson
President, HdL Companies
[email protected]
714.879.5000
120 S. State College Blvd. Suite 200 | Brea, CA 92821 | 714.879.5000 | hdlcompanies.com Premium Mushroom Substrate
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DAILY REPUBLIC
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Residents stop second cannabis dispensary from
coming to Pinedale neighborhood
by Stephen Hawkins | Thu, August 17th 2023, 10:30 AM PDT em arc"
SECRET
VIEW ALL PHOTOS
FILE - Embarc opened its first Fresno dispensary at Blackstone and Gettysburg (Photo: Michelle Tellez) f FRESNO, Calif. (FOX26) - Residents of the community of Pinedale have successfully blocked a new marijuana dispensary from moving into their neighborhood.
Pinedale is an unincorporated community in Fresno County located east of Blackstone Ave. surrounded by the city of Fresno.
Following hours of public comment by residents opposing the proposed cannabis store, the Fresno Planning Commission unanimously voted it down.
The dispensary had met the city's rules to open in the north Fresno neighborhood but commission members were convinced to keep it from moving forward.
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The store's proposed location at Blackstone and Alluvial Avenues had met all the requirements previously but residents at the meeting felt it was too close to schools.
The location is in a direct path for Clovis West and Kastner students as they walk to and from school, as well as to major entertainment and shopping outlets.
They also argued that armed guards and bad odors would be bad for the shopping center and neighborhood.
READ THE COMMENTS (2)
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Pinedale residents host candlelight vigil in PILATES
opposition towards a second cannabis dispensary WALL WORKOUT Viga spooting a stcond Embarclocation a rital carnat depenal
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Vote No on Item N2
Staff and the Consultant have not provided what the City Council gave direction for them to do so. The draft selection process goes against city ordinance and city council guidance on Some of which are listed below. Recommend involving the community to better define the process.
1. City Council Directed Staff to Involve the Cannabis Committee, and they hadn't.
On June 21, 2022 Redondo City Council introduced a motion that directed staff to ensure that the cannabis consultant HdL "meet with the cannabis committee" to discuss the selection process recommendation. City Manager Witzansky responded with "yep noted and yes". The Motion passed unanimously with the acceptation of City Council member Obagi recusing himself due to self declared investments into cannabis companies seeking retail In the over six months since that motion passed, staff had not reached out to the committee. Multiple calls were made the to Community Development Director until an email response on March 6, 2023, stating:
Brandy Forbes March 6, 2023 at 1:12 PM
RE: Time Sensitive - Cannabis Grant Program
To: Jonatan Cvetkoé
Jonatan,
Thank you for forwarding. We are already discussing this with our grant writer to see if it will work for us.
Also, I received your voicemails and appreciate your continued interest. At this time we don't foresee that the City Manager will be working with the cannabis steering committee, but if he decides to re-engage that group, I will be sure to reach out Thanks,
10) 318-0637 x22
[email protected]
www.redondo.org
The staff and consultant report does not even make mention of the committee's selection process recommendations.
2. No Cannabis Property Requirement
It is a well documented fact that the Redondo's cannabis ordinance does not require a property as part of the selection process:
REDONDO CANNABIS ORDINANCE NO. 3240-22
(17) Whether or not Applicants have obtained a property for the purposes of their commercial cannabis business prior to their selection, shall have no bearing on their selection.
There were a number of reasons that lead to this provision in the ordinance:
1. Discourages landlords from price gouging
2. It avoids selecting an applicant with the most money vs the best applicant
3. It mitigates potential lawsuits, such as in the case of City of Corona where HdL ended up selecting two applicants that had the exact same property.
4. It avoids forcing the licensee from paying for a property unnecessarily due to unforeseen circumstances, such as what happened in the City of LA where licenses paid for properties they couldn't use for over 3 years, until the City finally changed it's rules to make it unnecessary to retain a property while they waited.
5. To discourage others from seeking to gain an unfair advantage. As we saw with the outside ballot initiative brought on by Elliot Lewis, Barry Walker, and Adam Spiker, they acquired property in advance in hoping to gain an unfair advantage.
Most recently a Cannabis Real Estate company began to advertise various Redondo properties that would be within the approved zoning. This same real estate firm was founded by none other than Melahat Rafiei and her brother Meilad Rafiei, know as WeCann.
Melahat Rafiei is directly associated with Elliot Lewis, being his long time consultant after initially selling him a license her family had won in the City of Santa Ana.
Melahat Rafiei has are been the primary target of the FBI which arrested her for her role in attempting to bribe councilmember in Irvine for favorable decisions on selecting various cannabis clients. She recently plead guilty as is awaiting to be sentenced later this year.
Melahat Rafiei:
https://www.ocregister.com/2022/05/19/democratic-leader-cannabis-consultant-melahat- rafiei-key-to-fbis-anaheim-corruption-investigation/
Orange County Register
Cannabis licensing efforts tied to Anaheim corruption
investigation
Subscribers are entitled to 10 gift sharing articles each month. These can be shared with friends and family who are not subscribers.
May 19, 2022
Orange County Register
Melahat Rafiel resigns from DNC, fair board roles amid
fallout from Anaheim corruption probe
Subscribers are entitled to 10 gift sharing articles each month. These can be shared with friends and family who are not subscribers.
May 22, 2022
https://www.ocregister.com/2022/05/22/melahat-rafiei-resigns-from-dnc-fair-board-roles-amid- fallout-from-anaheim-corruption-probe/
Orange County Register
Melahat Rafiei, who was central to the FBI's Anaheim
investigation, takes plea deal
Subscribers are entitled to 10 gift sharing articles each month. These can be shared with friends and family who are not subscribers.
Jan 18, 2023
https://www.latimes.com/california/story/2023-01-19/former-ca-democratic-party-leader-who- helped-fbi-in-anaheim-probe-agrees-to-plead-guilty-to-wire-fraud Long Beach Post
Ex-director of OC Democratic Party pleads guilty to
attempted fraud
A former executive director of the Democratic Party of Orange County pleaded guilty today to a felony charge for attempting to defraud one... 1 month ago
https://lbpost.com/news/ex-director-of-oc-democratic-party-pleads-guilty-to-attempted-fraud/
Melahat Rafiei Founded WeCann with her Brother Meilad Rafiei CADEM = DONATE
MELAHAT RAFIEI
SECRETARY
WeCann
SECES H ALERTATE Y RESOURCES ABOUT U1 - CONTACT US PwEMISDtSTINSY
ABOUT US
Vinnsatl
MELAHAT BANE
JASON FRATIA
OHO CONHAY
LASE FLORES
DAN CAMARENA
ARE YOU LOOKING
TO OBTAIN A CANNABIS BUSINESS LICENSE?
WeCann
02.2022
CA MUNICIPALITY
UPDATES (
000
WeCann:
< All Inboxes Spotted! Redondo Bea... < All Inboxes Spotted! Redondo Bea... ^ V tourist attractions. With ample parking
From: Ryan - WeCann <[email protected]> including 10 dedicated spots and Date: April 13, 2023 at 10:04:36 AM PDT plenty of street parking, this property offers excellent accessibility for both
Subject: Spotted! Redondo Beach High Traffic tourists and locals alike. Renovated in Cannabis Retail Eligible Property 2008, this highly visible cannabis- Reply-To: [email protected] eligible retail property is a fantastic opportunity for the right buyer. Act
fast as we anticipate city applications
will be due soon!
WeCann Call us directly at (657) 888-2795
or complete the form on our
website to secure this location!
POWERED BY ( CREC
View Redondo Beach Retail
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Redondo Beach Listing
Highlights
High Traffic Redondo
Beach Cannabis • 4,500 SF, two-story building.
• About 10 dedicated on-site
Retail Eligible
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Property for Sale • Ample street parking.
• Corner Location
• 32,000 cars per day
Prime cannabis retail eligible property • 3-Mile Demographics:
in Redondo Beach, one of LA's famed • Population: 145,199 beach cities! This 4,500 SF, two-story • Average House Income:
building is just 1,700 feet from the $180,203
ocean shoreline and located near • Average Home Value: $977,609 several complimentary businesses and • Located near several tourist attractions. With ample parking complementary businesses. including 10 dedicated spots and • Just 1,700 feet from a popular plenty of street parking, this property
offers excellent accessibility for both
• Renovated in 2008
tourists and locals alike. Renovated in • Buyer to verify all details before 2008, this highly visible cannabis- finalizing the purchase. elicible retail property is a fantastic _ Derracant canpabic ardinanca This is exactly what Redondo was seeking to protect against in by not having a property requirement in the selection process. However, HdL and staff presented a selection process that does require a property.
HdL and Redondo Staff Proposed Site Plan Requirement
SECTION H: PROPOSED SITE PLAN (400 points)
1. Provide the following information about the existing site:
B. Narrative description of the existing site, including building(s), parking spaces, driveways, pedestrian sidewalks/rights-of-way,
C. Photographs of the existing property and building(s); i. Note: Photographs of building interior are not required.
D. Description of how the site is currently being used; E. Description of any businesses currently operating on the parcel (if any), and any parcels directly adjacent to the existing site.
2. Provide the following information about the proposed site:
. A site plan, drawn to scale, of the proposed business showing perimeter fencing riveways, streets, property lines, buildings, parking areas, and outdoor areas 13 B. A narrative description of
rehanration, desiding expans pr, paseing, landscaping, ending ordiner eatende site improvements;
i. Note: Descriptions of interior site improvements are not a requirement of C. A narrative description of the proposed ventilation, air purification, and fire revention systems
). Visual depictions of the proposed exterior of the cannabis business 3 Dity tim pae pre pud modi, say, we are on or the sal guaranti cale of life in the surrounding area
This proposed selection process violates Redondo Beach's Cannabis Ordinance. More should have been expected from the paid 3rd party consultant and staff.
3. Community Benefit Fund
Measure E by Elliot Lewis, Barry Walker, and Adam Spiker included a community benefit fund.
City Council agreed with the Cannabis advisory committee that it was in advisable to establish such as requirement for several reasons
1) It was overly burdensome to a business that is already taxed on multiple levels in benefit to the city.
2) It was difficult to enforce and hold the operator accountable for such a provision. What would the consequences be if the business fell on hard times and was unable to met it's state obligations.
3) Nothing stops the operator from establishing their own non-profit to their own benefit.
A City Mandate of a community benefit fund does not guarantee the success of such an action, and in it's failure the city must be prepared on how it intends to enforce against the operator should the operator be unable to fulfill it's promises.
Despite the City Council's disapproval of such a thing in Measure E, the consultant and staff report still included it in their draft.
SECTION G: COMMUNITY BENEFITS AND INVESTMENTS PLAN (400 points)
1. Describe the benefits that the business will provide to the local community, for example by directly aiding, participating in, or funding the work of local non-profits, community- based organizations, civic organizations, or social services organizations ("Community Organizations"). Note: Applicants should not identify any specific Community Organization at this time, or provide commitment letters) from local Community Organizations in the application submittal. This section is only intended to capture the overall commitment of Applicants to fund or support local community-based activity in general.
2. Describe the Applicant's plans for local outreach to City of Redondo Beach residents for open positions, and any other actions proposed by the Applicant that are intended to benefit the local workforce and/or Applicant's local employees.
3. Identify the minimum wage that will be offered to employees of the proposed business, excluding tips and gratuities. If entry-level employees are salaried, the Applicant should divide the minimum annual salary by 2,087 hours to arrive at an hourly rate.
4. Describe the benefits that will be provided to employees, including but not limited to health care, vacation, and medical leave, to the degree they are offered as part of employment.
5. Describe how the business will secure supplies and equipment from local sources.
4. County Health Permit
Redondo's Cannabis Ordinance requires a County Health Permit from the County's Cannabis Compliance and Enforcement Program. In the proposed selection process by the consultant, it makes no mention of such a requirement, despite their recommendation of the property requirement. What would happen if an applicant was selected based on their property designs but those designs weren't approved by the County Health Permit program? The consultant who reviewed the City's Cannabis licensing program should have been aware of 6-2.08 County Health Permit. The City shall work with The County of Los Angeles to adopt the county's Cannabis Compliance and Enforcement Program and require the city's cannabis Permittees to obtain the county's health permit prior to operation.
5. Banking
Federally Banking still remains illegal for cannabis companies. Despite some credit unions providing limited banking services to cannabis operators, cash still remains king in the cannabis industry. Requiring banking as part of the selection process presents an unfair barrier to entry when it is not universally, nor easily accessible by all operators.
HdL/Staff Selection Process Requirement
Section A: Business Plan (400 points)
D. A letter from a bank, credit union, or similar financial institution stating that the cannabis applicant has, or will be provided, access to banking services.
6. Public Input through community workshops?
The public should be given an opportunity to clearly understand what the requirements the section process involves. City Staff and Council should host a series of community workshops to allow the public to educate themselves and participate in providing recommendations to what they value in the selection process.
It is incredibly important that we promote a transparent process to avoid the appearance of any potential impropriety as has been well documented most recently:
Corruption is widespread in California's weed industry. Now, the state is taking action.
- LA Times March 23, 202
About HdL
Here's some articles on other cities that brought in HdL to assist with their cannabis licensing section process.
1) Fairfield Council Puts Breaks on Cannabis Licensing
"They also voted to fire HdL Companies and demand a refund of all money thus far paid to the company for its services related to the cannabis permit process." 2) Cannabis Licensing Scandal Sweeps Pasadena
" In emails obtained by the Pasadena Star-News, despite the city passing a clear ordinance outlining the selection process, when it came time to score the applications, the city hired HDL Companies, a California cannabis and tax consulting firm, in order to "streamline the process." In the final proposal, HDL said a "handful of employees" would grade the applications. These scores were then "reviewed," and later signed, by the firm's "marijuana compliance manager," who was in contact with each team member during weekly conference calls, erasing any notion of scorer independence.
3) Chula Vista faces a third cannabis dispensary lawsuit During an appeal hearing, Sobel says that a consulting company hired by Chula Vista to review and score the applications didn't follow the city's grading criteria.
The consultants, HdL, allegedly deducted points because of the format of the application and refused to consider supplementary information that Chula Vista had asked Cannabis Village to submit. HdL's representative at the appeal hearing, Matthew Eaton, said he did not personally evaluate Cannabis Village's application. "In fact, he testified that his company diluted the experience component in the contravention of the rules, and completely failed to consider the Supplemental Information submitted by CVCV at the request of the city in preparation for the interview, " the lawsuit states. "Such testimony by Mr. Eaton reveals his ignorance of the facts, and the arbitrary handling of the evaluation process by HdL's assigned clerk."
Industry Updates:
High tax rates and low enforcement against illegal cannabis operations has lead the an economic collapse of the industry that continue to play out. 1) California's Debt Bubble on the Verge of Bursting. 11/15/22 2) California's Cannabis Industry Owes State a Quarter of Billion Dollars in Taxes. 12/9/22
For the past 2 years quarter after quarter, state cannabis tax revenues have dropped quarter after quarter for the past 2 years. In Q4.2022, it was down $109M year over year The industry does not expect to stabilize for at least two more years.
California's Cannabis Tax Revenue Sinks to 13-
Quarter Low; Excise Tax Reporting Shifts
Licensed operators have provided nearly $4.9 billion in total tax revenue to the state since adult-use sales launched in 2018.
10312
Shannon Price Photography | Adobe Stock
TONY LANGE | MAY 24, 2023
Statewide cannabis tax revenues have been at an all time low, sinking to 13 quarter low and continuing the fall for the last 8 consecutive quarters. • As reported by the CDTFA in Q2 2023 statewide we brought in $1,316,582,703
• As of September 4th there are 1,700 cannabis retailers statewide. •
• The data shows us that the average revenue per retailer in a year is:
$3,097,841.65
• Redondo's expected cannabis tax revenue:
Only $154/,892.08/shop/yr
Aaran!
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Department of Cannabis Control
Text of Regulations
California Code of Regulations Title 4
Division 19. Department of Cannabis Control
Text proposed to be added to the rulemaking in this 15-day comment period is displayed in bold, double underlined type font. Text proposed to be deleted from the rulemaking in this 15-day comment period is displayed in bold, double strikethrough type font.
Chapter 1. All Licensees
Article 6. Track and Trace Requirements
Section 15049.3. Track and Trace Requirements for Delivery. (a) A licensed retailer conducting delivery of cannabis goods shall create a delivery inventory ledger in the track and trace system and record the information required under subsections (b)(1) through (7) prior to the delivery employee leaving the licensed retail premises for each delivery trip. A delivery trip begins when the delivery employee leaves the licensed retail premises to conduct delivery of cannabis goods. (b) The delivery inventory ledger shall include the following information:
(1) The delivery inventory ledger number generated by the track and trace system and assigned to the specific delivery trip.
(2) The name and license number of the licensed retailer. (3) The delivery employee's name, employee ID, and driver's license number. (4) The delivery vehicle's make, model, and license plate number. (5) The item name and category of each cannabis good to be carried on the delivery trip, the UID(s) assigned to those cannabis goods, and the number of units associated with each UID on the delivery inventory ledger.
(6) The UID(s) of any cannabis goods ordered by customers and processed by the licensed retailer prior to the delivery employee leaving the licensed retail premises. (7) The date and time the delivery employee begins the delivery trip. (c) For each delivery of cannabis goods, the following information shall be recorded within the track and trace system by the end of the calendar day on which the delivery was completed:
(1) The date and time the delivery was completed. A delivery is completed at the time the cannabis goods are physically provided to the customer. (2) Whether the customer is an adult-use customer, medicinal cannabis patient, or patient's primary caregiver.
Modified Text of Proposed Regulations (August 2023)
Track and Trace Requirements for Delivery of Cannabis Goods Page 1 of 4 (3) The UID and quantity of each cannabis good delivered. (4) The purchase price of each cannabis goods delivered. (5) The city, county, and zip code in which the delivery was completed. (d) If a delivery employee returns to the licensed retail premises for any reason, including to obtain additional inventory of cannabis goods, the licensed retailer may choose to continue the existing delivery trip in the track and trace system if deliveries are conducted by the same delivery employee using the same delivery vehicle on the same day as the exiting delivery trip. If the licensed retailer chooses to continue the existing delivery trip, any additional inventory may be considered part of the existing delivery trip and a new delivery inventory ledger is not required. The licensed retailer shall record the following information within the track and trace system under the existing delivery inventory ledger number for any additional cannabis goods to be carried on the same delivery trip:
(1) The item name and category of each additional cannabis good to be carried on the delivery trip, the UID(s) assigned to those cannabis goods, and the number of units associated with each UID on the delivery inventory ledger. (2) The date and time the delivery employee leaves the licensed retail premises to continue delivery trip.
(e) (1) The end date and time of the delivery trip shall be:
(A) Except as provided in subsection (e)(1)(B), the date and time at which the delivery employee returned to the licensed retail premises after conducting all deliveries that are part of the same delivery trip.
(B) If the delivery employee does not carry any unsold cannabis goods and does not return to the licensed retail premises on the same day after delivering all cannabis goods carried in the vehicle on the delivery trip, the date and time at which the delivery employee completed the last sale of cannabis goods on the delivery trip. (2) No later than the end of the calendar day on which the delivery trip occurred:
(A) If a delivery employee still carries unsold cannabis goods at the end of a delivery trip, the delivery employee must return to the licensed premises and remove the unsold cannabis goods from the delivery inventory ledger, and return the unsold cannabis goods to the licensed retailer's inventory within the track and trace system. (B) The licensed retailer shall record the end date and time of the delivery trip in the track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26068, and 26090, Business and Professions Code.
Modified Text of Proposed Regulations (August 2023)
Track and Trace Requirements for Delivery of Cannabis Goods Page 2 of 4 Chapter 3. Retailers
Article 6. Track and Trace Requirements
Section 15418. Cannabis Goods Carried During Delivery.
(a) A licensed retailer's delivery employee shall not carry cannabis goods in the delivery vehicle with a value in excess of $10,000 at any time.
(b) For the purposes of this section, the value of cannabis goods shall be determined using the current retail price of all cannabis goods carried by, or within the delivery vehicle of, the licensed retailer's delivery employee.
(c) A delivery employee may only carry cannabis goods, cannabis accessories, branded merchandise of any licensee, or promotional materials in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. A delivery employee must depart and return to the same licensed premises before taking possession of any cannabis goods from another licensee to perform deliveries. (d) A licensed retailer's delivery employee shall not leave the licensed premises with cannabis goods without at least one delivery order that has already been received and processed by the licensed retailer.
(ed) Before leaving the licensed premises, the licensed retailer's delivery driver employee must have a delivery inventory ledger of all cannabis goods provided to the licensed retailer's delivery driver employee. For each cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail value, the track and trace identifier, and the weight, volume or other accurate measure of the cannabis good.
The contents of the delivery inventory ledger must comply with the requirements of section 15049.3. All cannabis goods prepared for an order that was received and processed by the licensed retailer prior to the delivery driver's departure from the licensed premises must be clearly identified on the delivery inventory ledger. After each customer delivery, the delivery inventory ledger must be updated to reflect the current inventory in possession of the licensed retailer's delivery driver. Delivery inventory ledgers may be maintained electronically. During the delivery trip as defined in section 15049.3, the delivery employee shall maintain the delivery inventory ledger in hard copy or electronically, the latter of which may be an electronic copy maintained in the track and trace system. The delivery inventory ledger must be updated after each completed delivery to reflect the remaining inventory carried by the delivery employee. The delivery inventory ledger must otherwise be updated in accordance with the requirements of section 15049.3, and then be entered into the track and trace system no later than the end of the calendar day on which the delivery trip occurred. (fe) The licensed retailer's delivery driver employee shall maintain a log that includes all stops from the time the licensed retailer's delivery driver employee leaves the licensed premises to the time that the licensed retailer's delivery driver employee returns to the licensed premises, and the reason for each stop. The log shall be turned in to the licensed retailer when the licensed retailer's delivery driver employee returns to the licensed premises. The licensed retailer must maintain the log as a commercial cannabis activity record as required by this division. The log may be maintained electronically.
Modified Text of Proposed Regulations (August 2023)
Track and Trace Requirements for Delivery of Cannabis Goods Page 3 of 4 (gf) Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the licensed retailer's delivery driver employee electronically or in hard copy. The delivery request receipt provided to the licensed retailer's delivery driver employee shall contain all of the information required in section 15420, except for the date and time the delivery was made, and the signature of the customer.
(hg) Immediately upon request by the Department or any law enforcement officer, the licensed retailer's delivery driver employee shall provide:
(1) All The delivery inventory ledgers from the time the licensed retailer's delivery driver employee left the licensed premises up to the time of the request; (2) All delivery request receipts for cannabis goods carried by the driver delivery employee, in the delivery vehicle, or any deliveries that have already been made to customers; and
(3) The log of all stops from the time the licensed retailer's delivery driver employee left the licensed premises up to the time of the request.
(ih) If a licensed retailer's delivery driver employee does not have any delivery requests to be performed for a 30-minute period, the licensed retailer's delivery driver employee shall not make any additional deliveries and shall return to the licensed premises.
Required meal breaks shall not count toward the 30-minute period. (it) Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to the licensed retailer's inventory and all necessary inventory and track and trace records shall be updated as appropriate that same day recorded within the track and trace system in accordance with section 15049.3.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26068, 26070, 26090 and 26160, Business and Professions Code.
Modified Text of Proposed Regulations (August 2023)
Track and Trace Requirements for Delivery of Cannabis Goods Page 4 of 4 CITY OF CLAREMONT Community Development Department
City Hall Building • (909) 399-5471
207 Harvard Avenue Planning • (909) 399-5470
P.O. Box 880 Engineering • (909) 399-5465
Claremont, CA 91711-0880 Community Improvement • (909) 399-5499 FAX (909) 399-5327 Administration - (909) 399-5485
www.ci.claremont.ca.us
April 19, 2023
RE: Cannabis Deliveries into the City of Claremont
Dear Cannabis Business Owner,
You are receiving this letter because your business advertises delivery of cannabis products into the City of Claremont. We are writing to notify you that all commercial cannabis retailers conducting sales by delivery to addresses within the City are subject to the City of Claremont's cannabis business tax and permitting requirements, pursuant to Chapter 4.20 to the Claremont Municipal Code.
Section 4.20.050 of the Claremont Municipal Code imposes a cannabis business tax upon all cannabis businesses in the City, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. Pursuant to Resolution 2023-08, the initial cannabis business tax rate for every business or person who engages in the retail sale by delivery is 6.0% of gross receipts ($6.00 for each $100.00 of the total gross receipts generated by sales within the city limits of Claremont).
The cannabis business tax shall be paid in arrears on a monthly basis. Persons subject to the cannabis business tax shall register with the City and shall pay the registration fee adopted by the City Council.
The Claremont Municipal Code also requires businesses operating or performing a service within Claremont to apply for and retain a business license (a.k.a., business tax certificate). This includes businesses that are located outside of Claremont but transact business within the City limits.
To obtain a business license and a regulatory permit:
1. Complete the enclosed Business Tax Certificate Application and Cannabis Delivery Business Registration Form.
2. Provide a copy of your Department of Cannabis Control ("DC") license and local agencies license authorizing your business to conduct cannabis operations as a retailer.
3. Submit completed forms and license/permit processing fees ($70.00 permit fee).
Failure to comply with the business license and regulatory permit requirements is in violation of Chapter
4.20 to the Claremont Municipal Code and shall be punishable as a misdemeanor. Furthermore, should you conduct delivery activities in the City in non-compliance with the City Municipal Code you will be cited, and the City will notify the DCC of the violation. Please respond by May 22, 2023 to comply with the business license and permit requirements. If you do not conduct deliveries or do not intend to conduct deliveries in the City, please notify us in writing to confirm acknowledgement of this letter by email or phone at the contact information listed below.
Page Two
Centro
April 19, 2023
If you have any questions, please contact me at (909) 399-5323 or by email at [email protected].
Sincerely,
Alex Cousins
Management Analyst
9171 9690 0935 0116 0977 55
Cannabis Delivery Service Business License
Request for Evidence of Insurance
1887
Please provide this to your insurance agent for proper processing As part of your process to secure a Cannabis Delivery Service Business License with the City of Claremont you are required to provide evidence of insurance coverage as outlined below. Kindly return your completed insurance to the Community Development Department.
Certificate Holder: The City of Claremont
207 Harvard Avenue
Claremont, California 91711
Required Coverages & Endorsements:
Commercial General Liability (CGL) insurance in an amount of not less than one million dollars ($1,000,000) per occurrence
Automobile Liability insurance in an amount of not less than Three Hundred Thousand dollars ($300,000) combined single limit.
• The CITY OF CLAREMONT, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the Commercial general Liability (CGL) insurance.
*Requires a policy endorsement
Named insurance must state their insurance is primary and non-contributory by policy endorsement or proof of appropriate "Other Insurance" clause in the CL policy form. *Requires a policy endorsement
• Named insurance must state their insurance is primary and non-contributory by policy endorsement or proof of appropriate "Other Insurance" clause in the CGL policy form. • Workers' Compensation Insurance as required
• Certificate should indicate 30 day notice of cancellation or change in coverage.
R
Cannabis Business
Indemnity Agreement Form
1887
The indemnification form must be filled out completely and notarized for any Cannabis Businesses located outside the City that delivery cannabis into the City.
The licensee shall defend, indemnify and hold harmless the City and its City Council and each member thereof, and every officer and employee and agent of the City, from and against any and all liability, damages, judgements or financial loss resulting from any suits including all actual litigation costs incurred by City (including but not limited to court costs, attorney fees, and costs of experts and consultants), claims losses, settlement obligations (including an award of attorney's fees) or actions brought by any person or public entity for damages or liability of any nature whatsoever, arising in any manner by reason of:
1. Any act, error, or omission by the Cannabis Business, its boards, officers, agents, employees, assigns, and successors; and/or
2. The City's processing of an application or issuance of a Business License for a Cannabis Business, including but not limited to, an action to challenge, void, revoke or otherwise modify the License, the associated
The licensee shall promptly pay any final judgment rendered against the City (and its officers, officials and employees and agents) covered by this indemnity obligation. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination or expiration of the License. This indemnification obligation excludes liability resulting from the sole active negligence or wrongful conduct of the City of Claremont. The City's issuance of a business license, which is authorized under the laws of the State of California, shall not be considered sole active negligence or wrongful conduct.
In the event the Licensee fails to comply with this agreement, in whole or in part, the City may withdraw its defense of the action, revoke or modify its approval of the License, or take any action. The City retains the right to make all decisions with respect to its representations in any legal proceeding, including its inherent right to abandon or settle litigation. The City shall have the sole right to choose its counsel for defense of any action against the City covered by the indemnity obligation. The rights and remedies of the City provided in this agreement shall not be exclusive and are in addition to any other rights and remedies provided by law.
By signing this Indemnity Agreement Form, Licensee agrees to the terms of this form, agrees not to challenge any of the terms of this form, and accepts that all terms of this form are conditions precedent to the issuance of a License and declares under penalty that the person signing this form is authorized to do so on behalf of the Licensee.
Applicant Signature: Date:
Applicant Name: Personal Phone:
Applicant Address: Business Phone:
Business Address:
OPERATING CONDITIONS FOR CANNABIS DELIVERY SERVICES
1887
Business Name:
Delivery of cannabis from delivery services with delivery as the primary services, as well as adult-use and medical-use retailers to customers in Claremont is permitted, in accordance with the following requirements:
a. All cannabis delivery services, whether physically located inside or outside the city, shall have an approved business license for a cannabis delivery service from the City of Claremont and be able to show compliance with regulations of the originating jurisdiction. b. Every applicant for a delivery service license shall obtain and maintain in full force and effect an automotive liability insurance policy.
C. The licensee shall maintain in force and effect at all times while the license is in effect workers' compensation insurance as required by law.
d. Prior to issuance of a license under this chapter, and at all times while the license is in effect, the licensee shall maintain on file with the Community Development Department proof of the insurance required hereunder.
e. If the insurance policies issued to the licensee pursuant to this chapter are canceled for any reason, the license issued under this chapter is automatically suspended. In order to reinstate the license, the licensee shall file a new certificate of insurance and provide proof of such to the Community Development Director.
f. Only delivery to persons twenty-one years of age or over shall be allowed and eighteen years of age and older if the customer is a medical patient.
g. All drivers and anyone accompanying the driver must be at least twenty-one years of age or over. h. No signage on the exterior of the vehicle identifying the vehicle as a cannabis delivery vehicle shall be allowed.
i. The amount of cannabis allowed in each delivery vehicle shall be in compliance with state law. j. All cannabis delivery service customers are required to be pre-registered with the delivery service prior to receiving deliveries of cannabis
By signing below, the applicant acknowledges that they have read and understood the operating requirements for Cannabis Delivery Services and agrees to abide by them.
Failure to operate in the manner prescribed by these requirements, and any others set forth in State or Local law, may result in penalties being imposed, including, but not limited to, citations, revocation of the business license, or criminal prosecution.
Signature: Date:
Section C Continued
Mailing Address City State Zip Code
Section D - FICTITIOUS BUSINESS NAMES (if any)
Business Name
Address City State Zip Code
Business Name
Address City State Zip Code
Section E - DELIVERY SERVICE DESCRIPTION
Please describe your cannabis delivery service, including how customers order product, the number of delivery vehicles, location of vehicle storage, and the delivery service area:
Section F - DELIVERY SERVICE DESCRIPTION
Have you or any of the other officers of the partnership or corporation been licensed before? • Yes •No If yes, please explain:
Have you or any of the officers of the partnership or corporation ever had a business license revoked? • Yes • No If yes, please explain:
Have you or any of the officers of the partnership or corporation ever been convicted of a criminal offense, other than a traffic violation?
If yes, please explain:
In what other jurisdictions are you licensed to legally delivery cannabis products? Signature Printed Name Date Signed
ont. Q
CANNABIS DELIVERY SERVICE
BUSINESS LICENSE APPLICATION
(Businesses Based Outside of Claremont)
1887 Applicant/Owner Information Form
Section A - APPLICANT INFORMATION
Please provide the below business information for your cannabis businesses.
Name (individual or sole proprietor first and last; all other business types use legal business name) Doing Business As (DBA) If applicant is a business, list individual applying on behalf of the business Primary Address City State
Zip Code
Mailing Address (if different than primary address) City State Zip Code Business Website (if any) Email Address Phone Number
Applicant SS#, TIN, or FEIN DL/ID Number Applicant D.O.B.
Business Organizational Structure: (check one)
• Sole Proprietorship • Limited Liability Company • General Partnership • Corporation • Limited Partnership • Limited Liability Partnership Section B - PRIMARY CONTACT PERSON
Please provide the below business information for your cannabis businesses.
Name Title Phone Number Email Address
Section C - LIST OF OWNERS
An owner is defined as a person with an aggregate ownership interest of 20 percent or more, chief executive officer, member of the board of directors of a nonprofit, an individual who will be participating in the direction, control, or management of the person applying for a license, a partner of a commercial cannabis business that is organized as a partnership, a member of a limited liability company of a commercial cannabis business that is organized as a limited liability company, or an officer or director of a commercial cannabis business that is organized as a corporation. (attach additional pages if more owners) Owner #1 Name Email Ownership % Title
Mailing Address City State Zip Code
Owner #2 Name Email Ownership % Title
Mailing Address City State Zip Code
Owner #3 Name Email Ownership % Title
Mailing Address City State Zip Code
Owner #4 Name Email Ownership % Title
Continued on next page
CANNABIS DELIVERY SERVICE
BUSINESS LICENSE APPLICATION Please Check One
(Businesses Based Outside of Claremont) • New Application 207 Harvard Avenue, P.O. Box 880 • Renewal Application
Claremont, CA 91711-0880
1887
Phone: (909) 399-5323
Cannabis Delivery Service shall mean and include the commercial transfer of cannabis or cannabis products to an end user or customer for use or consumption rather than to another person or business for resale.
SUBMIT THE FOLLOWING ITEMS. Failure to submit the required information will constitute an incomplete application and will not be accepted by the Community Development Department.
Application Checklist
1. Completed Business License Application
2. Standard Conditions
3. Cannabis Business Indemnity Agreement Form
4. Proof of Commercial General Liability Insurance
a) Additional Insured endorsement
b) Primary Coverage endorsement
5. Proof of Automobile Liability Insurance
6. Proof of Worker's Compensation Insurance
7. Valid Government-issued ID or Driver's License
8. Copy of Local Cannabis Delivery License (from home jurisdiction) O
9. Copy of California State Cannabis License
10. Application Fee - $70
**Please make all checks payable to "City of Claremont"** Office Use Only
Date Received Received By
Notes