Agenda packet — South Lake Tahoe City Council, December 12, 2023 (part 3 of 3)

The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. iii. Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering.

3. On-site Consumption Operations. A licensee with an on-site consumption area shall maintain the following operating conditions, in addition to the operating conditions in this Subsection C, at all times:
a. No person under 21 years of age shall be allowed in the on-site consumption area. Employees shall notify patrons verbally and through posting of a conspicuous sign that entry into the premises by persons under the age of 21 is prohibited.
b. Hours of operating for cannabis sales shall be limited to 6:00am to 10:00pm, and hours of operation in the on-site consumption area shall end no later than 2:00am, or as further limited by the cannabis use permit.
c. The licensee shall implement a ventilation plan to prevent the flow of smoke to all other areas of the cannabis business and neighboring businesses and properties, such that odor generated is not detected outside the consumption area.
d. The licensee shall provide employee training on how to assist customers to avoid overconsumption of edibles. This training must include information about various products the consumption area sells, such as potency, absorption time, and effects.
e. A responsible employee of the cannabis business must be present in the on-site consumption area at all times when it is open to customers.
f. Cannabis products ingested, smoked, or vaped in an on-site consumption area must be purchased on-site.
g. An employee of the cannabis business must securely repackage a customer’s opened and unfinished cannabis products before the customer leaves the on-site consumption area. h. The sale or consumption of alcohol or tobacco products is not allowed on the premises. i. A licensee allowing smoking or vaping shall comply with SLTCC 4.100 (Clean Air and Health Protection).
j. Employees must cut off service to impaired customers and provide an option for a safe ride home, such as a shuttle, taxi, or ride-share service.

4. State License Required to Operate. Operation of a cannabis business shall not commence until a licensee has obtained a valid state license. Licensees shall maintain a valid state license at all times during operation of a cannabis business.

D. Inspection of Cannabis Business.

1. City officials may enter and inspect, investigate, audit, or review any licensee’s cannabis business, without prior notice, to ensure compliance and enforcement of the provisions of this chapter. An inspection, investigation, review or audit may be conducted at any time that the licensee is exercising privileges under the license or at such time otherwise as agreed to by the police chief and the licensee.

2. No licensee or any other person shall refuse, impede, obstruct, or interfere with an inspection pursuant to this chapter.

3. This subsection shall not be construed to require a licensee to cooperate with a request that would require the licensee to waive any constitutional or statutory privilege or to comply with a request for information or other matters within an unreasonable period of time in light of the time constraints of the licensee’s business. 494
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E. Notification to Police Department of Security Breaches. Each licensee shall notify the chief of police immediately after discovering any of the following: diversion, theft, loss, or any criminal activity involving the cannabis business; significant discrepancies identified during inventory; or any other breach of security.

F. Transfer of Cannabis Public Safety Licenses Prohibited. Cannabis public safety licenses issued pursuant to this chapter shall be nontransferable to a different person or entity. Any attempt to transfer or any transfer of ownership or control of a cannabis business shall be grounds for revocation of the cannabis public safety license by the chief of police.

4.180.040 Cannabis public safety license – General provisions.

A. Application Procedures.

1. Public safety license application must be approved prior to the applicant initiating the cannabis use permit application process as set forth more fully in Article X of Chapter 6.55 SLTCC.

2. Public safety licenses shall not be issued until after the city council has approved a development agreement for the proposed cannabis business.

32. The city council may set further application procedures and requirements by separate resolution.

B. Application Filing Requirements. A complete cannabis public safety license application or application for renewal or amendment along with all required fees and materials required by this chapter shall be submitted in order for a person, entity, and/or business to be considered for a cannabis public safety license. All cannabis public safety license applications or applications for renewal or amendment shall be filed with the chief of police using forms and authorizations provided by the city.

1. Eligibility for Filing. Public safety license applications and applications for renewal or amendment shall be filed by the owner and/or operator of the cannabis business.

Acceptable forms of government-issued identification include, but are not limited to, driver’s license or photo identity cards issued by the State Department of Motor Vehicles (or equivalent), a passport issued by the United States or by a foreign government, U.S. Military ID cards (active duty or retired military and their dependents) or a permanent resident card.
b. If the cannabis business is incorporated, a certified copy of the articles of organization, certificate(s) of amendment, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business.
c. If the cannabis business is a limited liability company, a certified copy of the articles of organization, certificate(s) of amendment, operating agreement, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business. d. If the cannabis business is an unincorporated association, a copy of the articles of association and any filings made with the California Secretary of State.
e. The name, address, electronic mail address and mobile phone number of the applicant’s or licensee’s current designated agent for service of process.
f. Emergency Contact. The name, electronic mail address, and mobile phone number of an owner, operator, or manager to act as an on-site community relations staff person to whom the city may provide notice of any operating problems associated with the cannabis business. 495
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. g. A statement dated and signed by each applicant, under penalty of perjury, that the applicant has personal knowledge of the information contained in the application, that the information contained therein is true and correct.

3. In addition to a completed public safety license application or application for renewal, applicants or licensees shall provide and submit the following information to the chief of police:
a. The applicant and each owner, operator and employee shall consent to fingerprinting and a criminal background investigation, and shall undergo fingerprinting and a criminal background investigation. b. Security Plans. Applicants shall provide a plan to provide adequate security on the premises of the cannabis business. The plan shall include standards showing the cannabis business’s ability to comply with the conditions of SLTCC 4.180.030(C).

C. Ongoing Filing and Reporting Requirements. Where a cannabis business or licensee replaces, hires, appoints or employs new operators and/or employees to its cannabis business, all such operators and employees shall be required to submit to fingerprinting and a criminal background investigation pursuant to subsection (B)(3) of this section. A cannabis business or licensee has an ongoing obligation to immediately report to the police chief any conviction for an offense listed in SLTCC 4.180.050(A)(3) imposed on an owner, operator and/or employee of the cannabis business or licensee. A cannabis business or licensee shall also have an ongoing obligation to immediately report to the chief of police any of the events listed in SLTCC 4.180.050(A)(4) or (A)(5).

4.180.050 Public safety license and public safety licenseissuance, renewal, and amendment – Approval and denial.

A. Criteria for Issuance. Cannabis public safety license applications or applications for renewal or amendment shall be approved where the chief of police confirms that the following criteria have been met:

1. The applicant and each owner, operator and employee of the cannabis business have authorized and completed fingerprinting.

2. The applicant and each owner, operator and employee of the cannabis business have authorized the use of their fingerprinting results to run a state and nationwide criminal background check.

3. The results of the criminal background checks establish that the applicant, owner(s), operator(s), and employees have not been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business.

The following offenses are substantially related to the qualifications, functions, or duties of a cannabis business:
a. A violent felony conviction, as specified in Cal. Penal Code § 667.5(c). b. A serious felony conviction, as specified in Cal. Penal Code § 1192.7(c). c. A felony conviction involving fraud, deceit, or embezzlement. d. 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. e. A felony conviction for drug trafficking with enhancements pursuant to Cal. Health & Safety Code § 11370.4 or 11379.8.
f. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license.
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4. The applicant has not been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for any unauthorized cannabis activities.

5. The applicant has not been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for cultivation or production of a controlled substance on public or private lands.

6. Security Plan. The applicant or licensee has provided a security plan providing the minimum standards set forth in SLTCC 4.180.030(C)(1).

7. Minimum Age. The applicant or licensee, and each owner, operator and employee of the cannabis business, is at least 21 years of age.

B. In addition to the criteria in Subsection A, the chief of police shall approve amendments to cannabis public safety licenses to allow on-site consumption at retailers or microbusinesses with a retailer component where the chief of police confirms the following criteria have been met:

1. The applicant has provided a site plan that shows the area designated for on-site consumption is physically separated and has a separate secure entrance from the retail storefront, and the area designated for on-site consumption is not visible from a public space and is situated and ventilated to prevent odors perceptible from neighboring properties.

2. If the site plan shows that adding an on-site consumption area will result in expansion of the area for retail use permitted by the cannabis use permit, the planning commission has approved an amendment to the cannabis use permit allowing the enlargement of retail space under SLTCC 6.55.760.

3. The applicant has provided an updated security plan providing the minimum standards set forth in SLTCC

4.180.030(C)(1)(d).

4. The applicant has provided an operations plan providing the minimum standards set forth in SLTCC

4.180.030(C)(3).

C. Criteria for Denial. Cannabis public safety licenses shall not be issued, or renewed, or amended where the chief of police confirms that one or more of the criteria set forth in subsection (A) or (B) of this section have not been met. If the chief of police denies the cannabis public safety license application or application for renewal or amendment, he or she shall specify in writing the reasons for the denial of the application or application for renewal, and notify the applicant that the decision shall become final unless the applicant seeks an appeal pursuant to subsection (CD) of this section.

CD. Appeal from Chief of Police Determination. An applicant who disagrees with the chief of police’s decision to approve or deny a cannabis public safety license application or application for renewal or amendment may appeal the decision to the city council in accordance with the appeal provisions of Chapter 2.35 SLTCC, Administrative Appeals.

4.180.060 Expiration and renewal of cannabis public safety licenses.

A. Cannabis public safety licenses shall expire one year after their issuance.

B. Cannabis public safety licenses must be renewed on an annual basis prior to expiration by filing with the chief of police an application for renewal and a renewal fee in an amount set forth by separate resolution of the city council, which amount is calculated to recover the city’s full cost of reviewing, issuing and administering said license.

C. The application for renewal and the renewal fee shall be filed at least 30 days, but not more than 60 days, prior to the expiration of the public safety license. If a timely renewal application is filed, the licensee’s cannabis public safety license shall not expire until the date that the chief of police approves or denies the public safety license application for renewal.
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D. An application for renewal shall be subject to all filing requirements set forth in SLTCC 4.180.040(B) and (C).

E. The chief of police shall issue or deny an application for renewal in accordance with the provisions of SLTCC

4.180.050.

4.180.070 Suspension and revocation by chief of police.

A. A cannabis public safety license issued under the terms of this chapter shall be suspended or revoked by the chief of police if he or she concludes any of the following:

1. The cannabis business or licensee has violated any of the requirements of this chapter.

2. The cannabis business is being operated in a manner which violates the security plan required by this chapter.

3. The cannabis business is being operated in a manner which constitutes a nuisance.

4. The cannabis business has failed to comply with the conditions of operation set forth in SLTCC

4.180.030(C).

5. The cannabis business has ceased to operate for 30 days or more.

6. Results of a criminal background check establish that a licensee, owner(s), operator(s), and/or employee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business, as set forth in SLTCC 4.175180.050(A)(3).

7. The applicant has been convicted, cited, fined, or penalized by any state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for any unauthorized cannabis activities.

8. The applicant has been convicted, cited, fined, or penalized by the state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately preceding the application for a cannabis public safety license or cannabis public safety renewal license, for cultivation or production of a controlled substance on public or private lands.

9. The cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.

10. A licensee’s cannabis use permit issued pursuant to Chapter 6.55 SLTCC has been terminated or revoked.

11. A licensee has attempted to transfer or has transferred a cannabis public safety license to another person or entity.

12. A licensee’s state license has been suspended, terminated, or revoked.

B. Expiration. Any cannabis public safety license revoked pursuant to this subsection shall be deemed to be expired and shall no longer entitle the licensee to any privileges authorized by the cannabis public safety license.

C. Appeal from Chief of Police Determination. A licensee who disagrees with the chief of police’s decision to suspend or revoke a cannabis public safety license may appeal the police chief’s decision to the city council in accordance with the appeal provisions of Chapter 2.35 SLTCC, Administrative Appeals.

4.180.080 No vested rights.

No person(s) shall have any vested rights to a cannabis public safety license, right or interest under this chapter, regardless of whether such person(s) cultivated, sold, distributed or otherwise engaged in acts related to the use of cannabis prior to adoption of the ordinance codified in this chapter. 498
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6.55.700 Purpose and intent.

The regulations in this article are meant to ensure compliance with the state cannabis laws and are not intended to and do not interfere with a patient’s right to use medical cannabis as authorized by the state cannabis laws. Nor do these regulations criminalize the possession or cultivation of cannabis for medical or nonmedical purposes as permitted by the state cannabis laws. Cannabis businesses within the city must comply with all provisions of the city code for obtaining permits for a cannabis business and must comply with the state cannabis laws and all other applicable local and state laws.

6.55.710 Definitions.

EXHIBIT A
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. “Distributor” means any cannabis business engaged in distribution. “Drug paraphernalia” shall have the meaning set forth in California Health and Safety Code Section 11014.5, and as subsequently amended.
“Edible cannabis product” means cannabis that is intended to be used, in whole or in part, for human consumption. “Extraction” means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.
“Identification card” shall have the meaning set forth in California Health and Safety Code Section 11362.712(g), and as may be amended from time to time.
“Manufacture” means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a cannabis product.
“Manufacturer” means any cannabis business that conducts any activities involving the manufacture of a cannabis product.
“Medical marijuana dispensary” shall mean a cooperative or collective of four or more members associating at a particular location or real property to cooperatively distribute cannabis to members for medical purposes and that operates on a not-for-profit basis.
“Medicinal cannabis” or “medicinal cannabis product” shall have the meaning set forth in California Business and Professions Code Section 26001(aial)(1), which includes cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at California Health and Safety Code Section 11362.5, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Microbusiness” means a cannabis business that engages in commercial cannabis activities of at least three of the following types of cannabis businesses: retailer, distributor, manufacturer, cultivator. “Operator” shall mean any person responsible for management of the cannabis business; any person listed as an officer, director, manager, or member in the Statement of Information filed with the Secretary of State for a cannabis business; any person listed in a governing document for a cannabis business, such as bylaws, articles of incorporation, or operating agreement; any person owning an interest in the cannabis business, unless the interest is solely a security, lien, or encumbrance; and any person that supervises an employee of the cannabis business. “Owner” shall have that meaning set forth in Section 26001(amap) of the Business and Professions Code and as it may be amended.
“Package” or “packaging” means any container or wrapper that may be used for enclosing or containing any cannabis or cannabis products. The term “package” does not include any shipping container or outer wrapping used solely for the transportation of cannabis or cannabis products in bulk quantity to another licensee or licensed premises.
“Park” shall mean any land, with public access, intended to provide recreation. For the purposes of this article, “park” also includes public beaches.
“Permittee” shall mean any person issued a cannabis use permit under this article. “Physician” shall mean a licensed medical doctor, including a doctor of osteopathic medicine as defined in the California Business and Professions Code.
“Property” shall mean the designated structure or structures and land specified in the cannabis use permit application that is owned, leased or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted.
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. “Retailer” means any cannabis business that engages in the sale of cannabis or cannabis products to customers, including medical and adult-use cannabis or cannabis products. “School” means any public or private school providing instruction in kindergarten or any of grades one to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. “State cannabis laws” means and includes California Health and Safety Code Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program); California Business and Professions Code Section 26000 et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)); all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted by the Department of Cannabis Control; any license issued by the Department of Cannabis Control; and all other applicable laws of the state of California regulating cannabis or cannabis products.
“Testing laboratory” means a laboratory, facility, or entity that offers or performs tests of cannabis or cannabis products and is licensed by the Department of Cannabis Control. “Youth centers” shall mean any youth center, as defined in Section 11353.1(e)(2) of the Health and Safety Code, any playground, as defined in Section 11353.1(e)(1) of the Health and Safety Code, and any child day care facility, as that term is defined in Section 1596.750 of the Health and Safety Code.

6.55.720 Residential cultivation of cannabis.

A. No person or entity may cultivate cannabis in any residence in the city, except that a person may cultivate no more than six living cannabis plants inside his or her private residence or inside an accessory structure to his or her private residence located upon the grounds of that private residence that is fully enclosed and secured against unauthorized entry; provided, that the owner of the property provides written consent expressly allowing the cannabis cultivation to occur, there is no use of gas products (CO2, butane, propane, natural gas, etc.) on the property for purposes of cannabis cultivation, and the cultivation complies with Health and Safety Code Section 11362.2(a)(3), as it may be amended.

B. Amortization of Existing Residential Cultivation Permits. All residential cultivation permits previously issued by the city are hereby deemed amortized and are null and void.

C. No Vested Rights. No person(s) shall have any vested rights to any permit, right or interest under this article, regardless of whether such person(s) cultivated cannabis prior to adoption of the ordinance codified in this article.

D. Public Nuisances. Cultivation shall not create a public nuisance and adversely affect the health or safety of persons residing in or near the residence where the cultivation occurs. A public nuisance may be deemed to exist if cultivation produces:

1. Odors which are disturbing to people of normal sensitivity residing or present on adjacent or nearby properties or areas open to the public;

2. More than three substantiated responses to valid confirmed complaints in a one-year time period to the residence from law enforcement officers;

3. More than three disruptions in a one-year time period to the free passage of persons or vehicles in the neighborhood;

4. Excessive noise which is disturbing to people of normal sensitivity on adjacent or nearby properties or areas open to the public in accordance with SLTCC 4.70.160;
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5. Adverse effects to health or safety through creation of mold, mildew, dust, glare, heat, noise, noxious gases, odor, smoke, traffic, parking, vibration, or other impacts, or be hazardous because of the use or storage of materials, processes, products or wastes.

E. Environment. Runoff and waste disposal by the residence where cultivation occurs must be in compliance with any applicable city, county, regional, state, and federal laws and regulations. A violation of any applicable city, county, regional, state, or federal law will be deemed a violation of this article.

F. Cultivation of cannabis in residences shall be in conformance with the following requirements:

1. Cultivation shall only occur in fully enclosed and secure structures. All outdoor cultivation of cannabis is strictly prohibited.

2. Cultivation shall only occur in residences which are in full compliance with the city code, including the building code and fire code.

3. No cooking, baking, or alteration as to form and substance of cannabis for commercial purposes, and/or sale, is permitted in a residence which cultivates cannabis.

4. From a public right-of-way, there shall be no exterior evidence of cannabis cultivation occurring at the residence.

6.55.730 Cannabis businesses – Use permit , development agreement, and public safety license required.

It shall be unlawful for any person to engage in, to conduct or carry on (or to permit to be engaged in, conducted or carried on) in or upon property located within the city, the operation of a cannabis business unless that person has first obtained and continues to maintain in full force and effect: a valid cannabis use permit issued by the city for that property, a development agreement with the city for use of the property as a cannabis business, and a valid cannabis public safety license issued by the city to the owner and/or operator of the cannabis business, pursuant to Chapter 4.180 SLTCC.

6.55.740 Cannabis businesses – General provisions.

A. Cannabis Businesses Allowed.

1. Only those types of cannabis businesses set forth in this section shall be allowed within the city:
a. Retailers.
b. Microbusinesses.
c. Testing labs.
d. Cultivators.
e. Manufacturers.
f. Distributors.
g. Delivery operations.
h. Existing permitted medical marijuana dispensaries, subject to SLTCC 6.55.840.

Any and all cannabis businesses, activities, nonprofits, associations, enterprises, collectives, cooperatives or dispensaries not expressly described herein are expressly prohibited. Temporary cannabis events are prohibited within the city.

2. No more than one cannabis business may exist in the same suite or unit on a lot or parcel of property. 502
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3. An owner and/or operator of a cannabis business may not own or operate more than one retail cannabis business, including a microbusiness with a retailer component, within the city.

4. No more than four retailers are permitted in the city, including microbusinesses with a retailer component.

Delivery operations of medicinal cannabis to medicinal cannabis patients or their primary caregivers within the city that originate from retailers outside the city’s jurisdictional limits are not subject to this limitation.

5. No more than two microbusinesses are permitted in the city, unless after the application period referenced in SLTCC 6.55.750(C) there are open permits for retailers, cultivators, manufacturers, or distributors, in which case the city council may adopt a resolution to reopen the application period to allow additional microbusinesses combining the open permit types.

6. No more than two cultivators are permitted in the city.

7. No more than four manufacturers are permitted in the city.

8. Distributors are permitted in the city only as part of a microbusiness, unless one or more of the permitted microbusinesses do not include a distributor component, in which case a distributor shall be permitted for each microbusiness without a distributor component.

9. Medical marijuana dispensaries operating under SLTCC 6.55.840 shall not be considered in determining the number of retailers, microbusinesses, manufacturers, distributors, or cultivators allowed under subsections (A)(4) through (A)(8) of this section. The maximum number of cannabis businesses permitted under the numerical limitations set forth in subsections (A)(4) through (A)(8) of this section are in addition to any medical marijuana dispensaries operating under SLTCC 6.55.840.

B. Limitations on Location.

Table 6.55.740
City Cannabis Business
Type
TRPA Permissible Use
Categories
a. Retailers (including
delivery operations)
“food and beverage retail sales”
and “general merchandise stores”
b. Microbusinesses
i. Retailer See a.
ii. Distributor See f.
iii. Manufacturer See e.
iv. Cultivator See d.
c. Testing labs “industrial services”
d. Cultivators “industrial services”
e. Manufacturers “food and kindred products” and
“small scale manufacturing”*
f. Distributors “wholesale and distribution”
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2. Areas and Zones Where Cannabis Businesses Are Not Permitted. a. Notwithstanding subsection (B)(1) of this section, a cannabis business may not operate on a parcel or lot located within 1,000 feet of a school, or 600 feet of a youth center, or 600 feet of a day care center, or 150 feet of any park, any religious institution, any residential or outpatient drug or alcohol treatment facility licensed by the State Department of Health Care Services, or hospital, that is in existence at the time the cannabis use permit is issued.

Distances under this subsection shall be calculated as a straight line from any parcel line of the property on which the cannabis business is located to the parcel line of the real property on which the facility, building, or structure, or portion of the facility, building or structure, in which the listed use occurs or is located. Locational restrictions shall apply to an entire parcel if any portion of the parcel is located within the applicable buffer distance.
b. Cannabis businesses may not operate on a parcel or lot located within a residential designated land use area, as depicted in the city’s general plan.

C. Transfer of Cannabis Use Permits.

1. Permit – Site Specific. A permittee shall not operate a cannabis business under the authority of a cannabis use permit at any place other than the parcel and specified address of the cannabis business stated in the application for the permit. All permits issued by the city pursuant to this article shall be nontransferable to a different location.

2. Transfer of a Permitted Cannabis Business. A permittee shall not transfer ownership or control of a cannabis business or attempt to transfer a cannabis use permit to another person unless and until the transferee obtains an amendment to the cannabis use permit from the planning commission to the permitting requirements of this article stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the development services department in accordance with all provisions of this article accompanied by the required transfer review application deposit.

3. Request for Transfer with a Revocation or Suspension Pending. No cannabis use permit may be transferred (and no permission for a transfer may be issued) when the development services department has notified the permittee in writing that the permit has been or may be suspended or revoked for noncompliance with this chapter and a notice of such suspension or revocation has been provided.

4. Transfer without Permission. Any attempt to transfer a cannabis use permit either directly or indirectly in violation of this chapter is declared void, and the permit shall be deemed revoked.

6.55.750 Cannabis use permit application requirements.

A. Cannabis Public Safety License. Applicants seeking a cannabis use permit and development agreement to operate a cannabis business within the city shall first submit an application for a cannabis public safety license. Upon the chief of police’s, or his/hertheir designee’s, approval of the application for a cannabis public safety license, the applicant may submit an application for a cannabis use permit and development agreement to operate a cannabis business.

B. Except as set forth in this article, applications for cannabis use permits shall be processed consistent with Article VII (Use Permits and Variances). The city manager, or his/hertheir designee, may recommend, and the city council may establish by resolution, any necessary procedures and application requirements.

C. Use Permits for Retailers, Cultivators, Manufacturers, Distributors, and Microbusinesses. Because only a limited number of retailers, cultivators, manufacturers, distributors, and microbusinesses are permitted, an application period for these businesses shall be established that allows the city to select the best applicants for negotiation of a development agreement. Such applicants shall to be placed on a qualified applicant list. The process and selection criteria for selection of the best applicants to be placed on the qualified applicant list shall be established by resolution of the city council.
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D. Applications shall include a requirement that applicants demonstrate owner consent to operate a cannabis business on the property. Applications for cannabis retailers shall also include a statement as to whether the use will include delivery of cannabis and cannabis products to locations outside the retailer’s property. If delivery services will be provided, the application shall describe the operational plan and specific extent of such service, security protocols, and how the delivery services will comply with the requirements set forth in this article and state law.

E. Site Plan. Applicants shall submit a site plan that shall include a floor plan, and a scaled premises diagram showing the boundaries of the cannabis business and property with all boundaries, dimensions, entrances and exits, interior partitions and walls, with labeling of each room, windows and common shared entryways. If the proposed cannabis business consists of only a portion of the property, the diagram shall be labeled indicating which part of the property is the proposed cannabis business and what the remaining property is used for.

F. Cost Recovery. Every application for a cannabis use permit shall be accompanied by a deposit (in an amount established by resolution of the city council) and the applicant shall replenish such deposit at the request of the city to allow for recovery of the city’s full cost of reviewing and issuing said permit and preparing and considering a development agreement.

6.55.760 Review, issuance, and/or denial of cannabis use permit applications.

A. Criteria for Issuance. In addition to the required findings for issuance of a special use permit in SLTCC

6.55.620(B), the planning commission, or the city council on appeal, shall make all of the following findings in determining whether to grant, modify, or deny a cannabis use permit for any cannabis business:

1. If the cannabis business is a microbusiness, retailer, manufacturer, distributor, or cultivator, the applicant is on the qualified applicant list established and maintained by the city.

2. The cannabis use permit application is complete and the applicant has submitted all information and materials required.

3. The proposed location of the cannabis business will comply with the buffer requirements in SLTCC

6.55.740(B) and is not likely to have a potentially adverse effect on the health, peace, or safety of persons due to the proximity of the proposed cannabis business to a school, youth center, park, church, state licensed drug or alcohol treatment facility, or hospital.

4. The proposed location of the cannabis business is not likely to have a potentially adverse effect on the health, peace, or safety of persons due to the proposed cannabis business’s proximity to another existing or permitted cannabis business, and no significant nuisance issues or problems are likely or anticipated.

5. The design of the cannabis business is compatible with the city’s design guidelines.

6. The property is located on a property which is consistent with all development standards of this title.

7. The location is not prohibited under the provisions of this title or any local or state law, statute, rule, or regulation.

8. The cannabis business will not violate any provision of the SLTCC or condition imposed by a city-issued permit, or any provision of any other local or state law, regulation, or order, or any condition imposed by permits issued in compliance with those laws.

9. The site plan for the cannabis business has incorporated features necessary to assist in reducing potential nuisance and crime-related problems. These features may include, but are not limited to, procedures for allowing entry; reduction of opportunities for congregating and obstructing public ways and neighboring property; and limiting furnishings and features that encourage loitering and nuisance behavior.

B. Supplemental Findings – Cannabis Testing Laboratory. In addition to the findings required for the approval of a cannabis use permit as set forth in subsection (A) of this section, the planning commission, or the city council on appeal, shall consider the following supplemental findings in determining whether to grant, modify, or deny a cannabis use permit for a testing lab:
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023.

1. The owners, permittees, operators, and employees of the testing lab will not be associated with any other form of commercial cannabis activity.

2. The testing lab meets the accreditation requirements set forth in Business and Professions Code Section 26100(h) and any applicable regulations enacted by the Department of Cannabis Control.

3. The testing lab operating plan demonstrates proper protocols and procedures for statistically valid sampling methods and accurate certification of cannabis and cannabis products for potency, purity, pesticide residual levels, mold, and other contaminants according to adopted industry standards.

C. Supplemental Findings – Cultivators. In addition to the findings required for the approval of a cannabis use permit as set forth in subsection (A) of this section, the planning commission, or the city council on appeal, shall consider the following supplemental findings in determining whether to grant, modify, or deny a cannabis use permit for a cultivator:

1. The cultivation of cannabis for commercial purposes shall only be cultivated within a fully enclosed space.

2. The cultivation of cannabis for commercial purposes shall be limited to 22,000 square feet of total canopy size per property.

3. The cultivation of cannabis will be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.

4. The applicant for cultivation for cultivation of cannabis with a total canopy size greater than 5,000 square feet per property has submitted documentation that electrical power used for commercial cannabis activity meets the average electricity greenhouse gas emissions intensity required by the local utility provider pursuant to the California Renewables Portfolio Standard Program, and has submitted an energy efficiency plan showing measures being taken to minimize energy consumption in lighting, HVAC, and dehumidifying equipment.

D. Supplemental Findings – Manufacturers. In addition to the findings required for the approval of a cannabis use permit as set forth in subsection (A) of this section, the planning commission, or the city council on appeal, shall consider the following supplemental findings in determining whether to grant, modify, or deny a cannabis use permit for a manufacturer:

1. The manufacturer shall be limited to 2,500 square feet of fully enclosed space.

2. The manufacturer shall not undertake any volatile extraction activities, and shall only conduct the operations authorized under the “Type 6,” “Type N,” or “Type P” license categories, as defined in the Department of Cannabis Control regulations, Title 4 of the California Code of Regulations, Section 17006, as may be amended.

E. Criteria for Denial. The planning commission shall deny an application that meets any one of the following criteria:

1. Any supervisor, employee, or person having a 10 percent or more financial interest in the cannabis business has been convicted of a felony or a drug-related misdemeanor reclassified by Section 1170.18 of the California Penal Code (Proposition 47) within the past 10 years. A conviction within the meaning of this subsection means a plea or verdict of guilty or a conviction following a plea of nolo contendere;

2. Any person who is listed on the application or is an owner or operator, is a licensed physician making patient recommendations for medical cannabis pursuant to Section 11362.7 of the Health and Safety Code;

3. Any person who is listed on the application or is an owner or operator is less than 21 years of age;

4. The proposed cannabis business does not comply with the provisions of this article or state cannabis laws; and

5. The planning commission is unable to make a required finding contained in this section. 506
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023.

F. Planning Commission Determination. If the planning commission, by a majority vote of a quorum of commissioners, denies the application, the planning commission shall specify in writing the reasons for the denial of the application, and notify the applicant that the decision shall become final unless the applicant seeks an appeal pursuant to Chapter 2.35 SLTCC.

G. Use Permit and License Issuance. No cannabis use permit shall be issued by the city until a development agreement is approved for the operation of the cannabis business. Within 10 days after the city council’s approval of a development agreement for the operation of a cannabis business, the chief of police shall issue all permittees a cannabis public safety license, and the development services department shall issue a cannabis use permit, provided that the planning commission has made all findings required under this section.

HG. Indemnification. Cannabis use permits shall contain a condition requiring the dispensary, through its management members, to execute an agreement in a form approved by the city attorney whereby the cannabis business (1) releases the city, and its agents, officers, elected officials, and employees from any injuries, damages, or liabilities of any kind that result from any arrest or prosecution of the cannabis business or its management members, employees, or members for violation of state or federal laws, (2) defends, indemnifies and holds harmless the city and its agents, officers, elected officials, and employees for any claims, damages, or injuries brought by any party arising out of the city’s decision to permit the operation of the cannabis business, and (3) defends, indemnifies and holds harmless the city and its agents, officers, elected officials, and employees for any claims, damages, or injuries of any kind brought by adjacent or nearby property owners or other third parties due to the operations at the cannabis business.

6.55.770 Appeal from planning commission determination.

An applicant or any interested party who disagrees with the planning commission’s decision to issue, issue with conditions, or to deny or revoke a cannabis use permit may appeal the planning commission’s decision to the city council in accordance with the appeal provisions of Chapter 2.35 SLTCC.

6.55.780 Suspension and revocation by planning commission.

A. Authority to Suspend or Revoke a Cannabis Use Permit. Any permit issued under the terms of this article may be suspended or revoked by the planning commission.

B. A cannabis use permit may be revoked if it appears to the planning commission that the cannabis business has violated any of the requirements of this article or the security plan required pursuant to Chapter 4.180 SLTCC, or the cannabis business is being operated in a manner which constitutes a nuisance, or the cannabis business has ceased to operate for 30 days or more, or the owner or operator of the cannabis business fails to maintain a valid and current public safety license, or the cannabis business has not entered into and/or complied with the terms of a valid development agreement, or the cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.

C. Any cannabis use permit revoked pursuant to this section shall be deemed to be expired and shall no longer entitle the permittee to any uses authorized by the cannabis use permit.

D. Revocation, expiration or nullification of a cannabis public safety license pursuant to SLTCC 4.180.060 and

4.180.070, or expiration of a development agreement to operate the cannabis business, shall automatically terminate the cannabis use permit issued to the licensee and shall terminate the ability of the licensee to operate a cannabis business without initiation of revocation proceedings by the planning commission.

E. Annual Review of Cannabis Businesses. The development services department is hereby authorized to conduct an annual review of the operation of each permitted cannabis business within the city for full compliance with the operational, record-keeping, nuisance and other requirements of this article, in coordination with any other departments of the city. Each cannabis business shall pay a fee in an amount established by resolution of the city council which shall be collected in order to reimburse the city for the time involved in the annual review process, unless such fee is set forth in a development agreement approved by the city council for such cannabis business. The staff may initiate a permit suspension or revocation process for any cannabis business which, upon completion of an annual review, is found not to be in compliance with the requirements of this chapter or which is operating in a manner which constitutes a public nuisance. Staff may, based upon its annual review of the operation of a cannabis business, place on a planning commission meeting agenda, a proposal to suspend or revoke a cannabis use permit. 507
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023.

6.55.790 Development agreement.

A. Prior to operating in the city and as a condition of issuance of a cannabis use permit, each cannabis business shall enter into a development agreement pursuant to Government Code Section 65864 et seq. with the city setting forth the terms and conditions under which the cannabis business will operate that are in addition to the requirements of this article, including, but not limited to, public outreach and education, community service, payment of fees and other charges as set forth in subsection (C) of this section, and such other terms and conditions that will protect and promote the public health, safety, and welfare. Further procedures and minimum standards for a development agreement may be enacted by resolution of the city council.

B. The planning commission shall make a recommendation to the city council on whether to approve a development agreement submitted to it by city staff. The city council shall make a final decision on whether to approve a development agreement recommended to the city council by the planning commission.

C. Development agreements shall include a provision requiring the payment of a public safety impact mitigation fee based on a pro-rata share of projected annual enforcement costs for cannabis businesses within the city.

Additionally, applicants may provide for a community public benefit, in an amount not to exceed six percent of gross receipts received.

D. If the voters of the city of South Lake Tahoe pass a measure approving any tax on any cannabis businesses, any development agreements entered into pursuant to this section shall expire upon the expiration of the term set forth in such development agreement, and shall not be renewed. All cannabis businesses operating pursuant to a development agreement shall be subject to any applicable taxes approved by the voters.

6.55.800 Cannabis businesses – Conditions of operation.

A. All Cannabis Businesses. All cannabis businesses shall be operated, maintained, and managed on a day-to-day basis in compliance with the following operational conditions and requirements:

1. State Licensing and Compliance with State Cannabis Laws. The city recognizes that state law requires dual licensing at the state and local level for all cannabis businesses. All operators shall therefore be required to diligently pursue and obtain a state cannabis license at such time as the state begins issuing such licenses, and shall comply at all times with all applicable state cannabis laws.

2. Cannabis Public Safety License. A cannabis business shall maintain a cannabis public safety license at all times. The failure to maintain a cannabis public safety license, revocation of a cannabis public safety license, or lapse in renewal of a cannabis public safety license shall be the basis for immediate termination of the right to operate a cannabis business under a cannabis use permit.

3. A cannabis business shall have entered into a development agreement with the city and shall comply with the terms of the development agreement at all times during operations of the cannabis business.

43. Employees. It shall be unlawful for the applicant, owner, operator, or any other person effectively in charge of any cannabis business to employ any person who is not at least 21 years of age.

54. Minors. Persons under the age of 21 years shall not be allowed on the premises of a cannabis business unless they are a qualified patient. The entrance to each cannabis business shall have, clearly and legibly posted, a notice indicating that persons under the age of 18 are prohibited from entering the premises unless they are a qualified patient and they are in the presence of their parent or guardian.

65. Every cannabis business shall display, at all times during its regular business hours, the cannabis use permit and cannabis public safety license issued for such cannabis business in a conspicuous place so that the same may be readily seen by all persons entering the cannabis business.

76. No cannabis business shall hold or maintain a license from the State Department of Alcoholic Beverage Control for the sale of alcoholic beverages, or operate a business on the premises of the cannabis business that sells alcoholic beverages, or otherwise allow alcoholic beverages to be possessed, distributed, or consumed on the premises.
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87. No cannabis business shall be a retailer of tobacco products.

98. Operation of a cannabis business shall not result in illegal redistribution or sale of cannabis obtained, or the use or distribution in any manner which violates state cannabis laws or this article. 109. Odors. All cannabis businesses shall be sited and/or operated in a manner that prevents cannabis odors from being detected off site. All structures utilized for indoor cannabis cultivation shall be equipped and/or maintained with sufficient ventilation controls (e.g., carbon scrubbers) to eliminate nuisance odor emissions from being detected off site.
1110. Security. The cannabis business shall at all times comply with all elements of its security plan, submitted as a part of its cannabis public safety license application pursuant to Chapter 4.180 SLTCC. 1211. Signage and Advertising. The cannabis business shall comply with all applicable provisions of Chapter

6.40 SLTCC and any applicable Tahoe Regional Planning Agency regulations. All advertising shall comply with Business and Professions Code Section 26151.
1312. On-Site Consumption. On-site consumption shall be prohibited is allowed at permitted retailers and microbusinesses with a retailer component upon approval of an amended public safety license under SLTCC

4.180.050 and, if the addition of on-site consumption increases the floor area used for retail, approval of an amended cannabis use permit under SLTCC 6.55.800(B)(2). 1413. Additional Conditions. The planning commission may impose additional conditions which it deems necessary to ensure that operation of the cannabis business will be in accordance with the standards and regulations provided in this title, the standards set forth by separate resolution of the city council, and applicable state laws.

B. Supplemental Conditions – Retailers. In addition to each of the conditions of operation set forth in subsection (A) of this section, a cannabis retailer shall be operated, maintained, and managed in compliance with the following supplemental conditions:

1. Retailers may not sell drug paraphernalia and implements that may be used to ingest or consume cannabis except where such sales and operations comply with Health and Safety Code Section 11364.5.

2. Retailers shall not be enlarged in size (i.e., increased floor area) without the planning commission’s prior review and approval and an approved amendment to the existing cannabis use permit applied for and issued pursuant to the requirements of this article.

3. Retailers shall only sell, deliver, or give away medical cannabis to individuals authorized to receive medical cannabis in accordance with state cannabis laws. Retailers of medical cannabis shall require such persons receiving medical cannabis to provide valid official identification, such as a Department of Motor Vehicles driver’s license or State Identification Card, each time he or she seeks to purchase medical cannabis.

4. Hours of Operation. Retailers may only operate during the hours between 6:00 a.m. through 10:00 p.m., except that authorized on-site consumption areas may operate until 2:00 a.m. with no cannabis sales after 10:00 p.m. The planning commission may further restrict a retailer’s days and hours of operation as a condition of a cannabis use permit. A retailer shall post its approved days and hours of operation on a sign located on the street frontage of the cannabis business in a manner consistent with the city’s sign regulations. Delivery operations of medicinal cannabis to medicinal cannabis patients or their primary caregivers are not subject to these limited hours of operation.

5. Retailers shall not have a physician on-site to evaluate patients and/or provide recommendations for the use of medical cannabis.

6. State Seller’s Permit. Retailers shall, at all times during operation, maintain a valid seller’s permit required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code.
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023.

7. Retailers shall make available lock bags on site for purchase or shall provide information on how to obtain a lock bag.

8. Cannabis and cannabis products shall only be sold as pre-packaged consumer products, and each type of product shall be pre-packaged in a uniform amount per package. Cannabis and cannabis products shall be pre-packaged for general sale and not at the request of any specific customer.

C. Supplemental Conditions – Cultivators. In addition to each of the conditions of operation set forth in subsection (A) of this section, a cannabis cultivation operation shall be operated, maintained, and managed in compliance with the following supplemental conditions:

1. Outdoor commercial cultivation prohibited. The cultivation of cannabis for commercial purposes may only be cultivated within a fully enclosed space.

2. The cultivation of cannabis for commercial purposes shall be limited to 22,000 square feet of total canopy size per property.

3. The cultivation of cannabis must be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides. Any fumigation or insecticidal fogging shall comply with the California Fire Code Chapter 26 (Fumigation and Insecticidal Fogging).

4. Screening. Cannabis plants shall not be visible from any location beyond the property.

5. Cultivators shall maintain either the “Type 1A” (specialty indoor), “Type 1B” (specialty mixed-light), “Type 1C” (specialty cottage), “Type 2A” (small indoor), “Type 2B” (small mixed-light), “Type 3A” (indoor), “Type 3B” (mixed-light) or “Type 4” (nursery) licenses as defined in Business and Professions Code Section 26061, and issued by the Department of Cannabis Control, at all times of operation.

6. Cultivators may not engage in retail sales at the same property as cultivation.

D. Supplemental Conditions – Delivery Operations. In addition to each of the conditions of operation set forth in subsection (A) of this section, a cannabis delivery operation shall be operated, maintained, and managed in compliance with the following supplemental conditions:

1. Delivery operations shall only be operated by a permitted cannabis retailer that has a physical location and a retail storefront in the city open to the public. A cannabis retailer shall not conduct sales exclusively by delivery. Delivery operations of medicinal cannabis to medicinal cannabis patients or their primary caregivers within the city that originate from retailers outside the city’s jurisdictional limits are not subject to this limitation, but any such delivery operation is required to obtain a public safety license under Chapter 4.180 SLTCC.

2. Vehicles used for deliveries shall have a GPS tracker, and records shall be maintained regarding the location of all deliveries. No more than maximum of $3,000 in cash, or equivalent value of cannabis or cannabis products, may be carried at any time.

E. Supplemental Conditions – Microbusinesses. In addition to each of the conditions of operation set forth in subsection (A) of this section, each microbusiness shall be operated, maintained, and managed in compliance with the following supplemental conditions:

1. Except as modified by this subsection (E), each microbusiness with a retail component shall comply with all conditions of operation set forth in subsection (B) of this section, each microbusiness with a cultivator component shall comply with all conditions of operation set forth in subsection (C) of this section, each microbusiness with a manufacturer component shall comply with all conditions of operation set forth in subsection (F) of this section, and each microbusiness with a distributor component shall comply with all conditions of operation set forth in subsection (G) of this section.

2. Microbusinesses undertaking manufacturing activity shall utilize only extraction processes that employ nonvolatile solvents for the purposes of extracting cannabinoids and processes that are recognized as safe 510
South Lake Tahoe City Code Page 13/14
The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. pursuant to the Federal Food, Drug, and Cosmetic Act. Microbusinesses undertaking manufacturing activity shall maintain a license of the “Type 6,” “Type N,” or “Type P” license categories, as defined in Title 4 of the California Code of Regulations, Section 17006, as may be amended.

3. The cultivation of cannabis for commercial purposes by microbusinesses shall be limited to 10,000 square feet of total canopy size per property.

4. A microbusiness with a retail component may engage in retail sales on the same property as a cultivation component, but shall limit access to the public to only the retail component of the microbusiness.

F. Supplemental Conditions – Manufacturers. In addition to each of the conditions of operation set forth in subsection (A) of this section, manufacturers shall be operated, maintained, and managed in compliance with the following supplemental conditions:

1. Manufacturers shall not engage in on-site retail sales of cannabis or cannabis products.

2. Manufacturers shall utilize only extraction processes that employ nonvolatile solvents and are recognized as safe pursuant to the Federal Food, Drug, and Cosmetic Act.

3. Standard of Equipment. Manufacturing, processing, and analytical testing devices used by manufacturers must be UL (Underwriters Laboratories) listed or otherwise certified by an approved third party testing agency or engineer and approved for the intended use by the city’s building official and fire code official.

4. Food Handler Certification. All owners, employees, volunteers, or other individuals that participate in the production of edible cannabis products shall be state-certified food handlers. The valid certificate number of each such owner, employee, volunteer, or other individual must be on record at the property where the individual participates in the production of edible cannabis products.

5. Edible Cannabis Product Manufacturing. Manufacturers that sell or manufacture edible cannabis products shall obtain a county health permit to sell and/or manufacture edible cannabis products. Permit holders shall comply with county health permit requirements.

6. The manufacturer shall maintain a manufacturer license of “Type 6,” “Type N,” or “Type P” license categories, as defined in Title 4 of the California Code of Regulations, Section 17006, as may be amended.

G. Supplemental Conditions – Distributors. In addition to each of the conditions of operation set forth in subsection (A) of this section, distributors shall be operated, maintained, and managed in compliance with the following supplemental conditions:

1. No distributor may distribute cannabis from an unlicensed cannabis cultivator or manufacturer. Distributors may only distribute cannabis products between other licensed businesses within the state of California.

2. Distributors may not sell cannabis products directly to consumers, and cannabis distribution facilities shall be fully enclosed and inaccessible to the general public.

H. Maintenance, Access to, and Inspection of Records.

1. Every cannabis business shall maintain on-site, at the property designated for the operation of the cannabis business, all records of the cannabis business.

2. Financial Records. The cannabis business shall maintain a written accounting record or ledger of all cash, receipts, credit card transactions, reimbursements, (including any in-kind contributions), and any and all reasonable compensation for services provided by the cannabis business, as well as records of all operational expenditures and costs incurred by the cannabis business in accordance with generally accepted accounting practices and standards typically applicable to business records.

3. Record Retention Period. The records required in this subsection shall be maintained by the cannabis business for a period of five years and shall be made available to the city within 24 hours of written request. 511
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023.

4. A duly designated city police department or finance department representative may enter and shall be allowed to inspect the premises of every cannabis business as well as the financial and membership records of the cannabis business required by this article at any time during the cannabis business’s designated business hours, or at any appropriate time to ensure compliance and enforcement of the provisions of this article. Such representative may also require the cannabis business to also provide access to such financial records electronically. It shall be unlawful for any owner, operator, or any other person having any responsibility over the operation of the cannabis business to refuse to allow, impede, obstruct or interfere with an inspection of the cannabis business or the required records thereof.

6.55.810 Business license tax liability.

An operator of a cannabis business shall be required to apply for and obtain a business and professions tax certificate pursuant to Chapter 3.35 SLTCC as a prerequisite to obtaining a cannabis use permit or operating within the city pursuant to the terms of this article. The cannabis businesses shall be subject to sales tax and other applicable taxes in a manner required by state law.

6.55.820 No vested rights.

No person(s) shall have any vested rights to any permit, right or interest under this chapter, regardless of whether such person(s) cultivated, sold, distributed or otherwise engaged in acts related to the use of cannabis prior to adoption of the ordinance codified in this article.

6.55.830 Public nuisance.

Any use or condition caused or permitted to exist in violation of any provision of this article shall be and hereby is declared a public nuisance and may be subject to administrative citations as set forth in Chapter 2.30 SLTCC, summarily abated by the city pursuant to Chapter 4.40 SLTCC and/or Code of Civil Procedure, Section 731, or subject to any other remedy available to the city.

6.55.840 Existing permitted medical marijuana dispensaries.

A. Any medical marijuana dispensary operating pursuant to (1) a valid South Lake Tahoe dispensary permit (which permit was issued pursuant to South Lake Tahoe Ordinance No. 1032) as of the effective date of the ordinance codified in this article, or (2) a valid court order authorizing the continued operation of a medical marijuana dispensary pursuant to Ordinance No. 1032, shall be permitted to continue operation subject to compliance with all requirements set forth in Ordinance No. 1032 for a period of three years from the effective date of the ordinance codified in this article to seek permits and licenses required under the city code. During this three-year period, any existing medical marijuana dispensary may temporarily expand its land use to include adult use upon obtaining all required state licensing for such adult use and a cannabis public safety license from the city, and may provide a community public benefit in an amount not to exceed six percent of gross receipts received. At the end of the three-year period, any existing medical marijuana dispensary shall be subject to all city regulations, permit, and license requirements applicable at that time and shall be required to have obtained all applicable permits and licenses prior to continuing operation. The city manager may renew any dispensary permit previously issued pursuant to Ordinance No. 1032 during the three-year period, provided that the requirements for renewal set forth in Ordinance No. 1032 are satisfied, and may modify, deny, suspend or revoke any dispensary permit previously issued in accordance with the requirements for such action by the city manager set forth in Ordinance No. 1032.

B. Except as set forth herein, nothing in this section shall authorize a physical or operational expansion of any existing permitted medical marijuana dispensary beyond the locations, physical sizes, or uses specifically articulated and allowed under South Lake Tahoe Ordinance No. 1032.

C. This section shall not create any vested rights to any permit, right or interest under Ordinance No. 1032, regardless of whether such person(s) cultivated, sold, distributed or otherwise engaged in acts related to the use of cannabis prior to adoption of the ordinance codified in this article or Ordinance No. 1032. 512
Ordinance 2024-XXX December 12, 2023 Page 1 of 29
Ordinance 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
January 9, 2024
An Ordinance Amending the South Lake Tahoe City Code Chapter 6.55, Article X (Cannabis Regulations), Chapter 4.180 (Cannabis Public Safety License Ordinance), and Chapter 4.100 (Clean Indoor Air and Health Protection) to Allow Curbside Delivery, Remove Outdated Provisions Regarding Development Agreements and Existing Medical Marijuana Dispensaries, and to Comply with Changes in State Law Regarding Smoking in Workplaces

FINDINGS
A. On February 5, 2019, the City Council adopted Ordinance No. 2019-1126 (“Cannabis Ordinance”), which regulates cannabis businesses in order to ensure the health, safety, and welfare of the residents of and visitors to the City of South Lake Tahoe.

B. On February 10, 2022, the Planning Commission conducted a public hearing to consider amendments to the Cannabis Ordinance, and adopted Resolution No. 2022-001 recommending that the City Council adopt an ordinance amending Article X of Chapter 6.55 (Cannabis Regulations) of the South Lake Tahoe City Code to allow on-site consumption and make other changes.

C. On March 15, 2022, the City Council voted instead to adopt a version of the ordinance to continue to prohibit on-site consumption, but included the other changes recommended by the Planning Commission, including allowing permittees to hold multiple non-retail permits and increasing the maximum canopy size for cultivators to 22,000 square feet.

D. At the City Council meeting on August 8, 2023, Councilmember John Friedrich requested that the issue of on-site consumption be brought back to City Council for discussion, which was seconded by Councilmember Tamara Wallace.

E. In 2022, the California Legislature adopted Senate Bill 1186 (The Medicinal Cannabis Patients’ Right of Access Act), which effective January 1, 2024, prohibits cities from adopting or enforcing any regulation that directly or indirectly prohibits retail delivery of medicinal cannabis to patients or caregivers, and the proposed ordinance is consistent with SB 1186.

F. Measure G passed in the November 2022 election, establishing a cannabis business and professions tax that is intended to take the place of the community benefit fee contained in development agreements. While the current development agreements will remain in place until their terms expire in 2024-2025, the proposed ordinance would remove the development agreement requirement for any new cannabis business that becomes licensed at a later date. 513
Ordinance 2024-XXX December 12, 2023 Page 2 of 29
G. The only business that was subject to Section 6.55.840 (Existing permitted medical marijuana dispensaries), Tahoe Wellness Center, received a cannabis use permit in 2022 and is now operating under the same regulatory framework as the other cannabis businesses such that this provision is no longer needed, and the proposed ordinance would delete it and other references to it.

H. The City allowed curbside delivery during the Covid pandemic under an emergency order without issue, and since then, the Department of Cannabis Control has amended its regulations to permanently allow curbside delivery under 4 Cal. Code Regulations section 15402(d).

I. Under Labor Code section 6404.5, smoking is generally prohibited in workplaces statewide, requiring amendments to the City’s Clean Indoor Air and Health Protection Ordinance which has a number of exceptions that are no longer allowed under state law.

J. In accordance with Government Code section 65853, the Planning Commission reviewed and considered the amendments to the zoning and use regulations in Title 6 of the South Lake Tahoe City Code at a duly noticed public hearing and made a recommendation to City Council by adopting Resolution No. 2023-015.

Now, Therefore, the City Council of City of South Lake Tahoe does ordain as follows:

SECTION 1. Chapter 4.100 (Clean Indoor Air and Health Protection) of the South Lake Tahoe City Code is amended to read in its entirety as follows:

Chapter 4.100

CLEAN AIR AND HEALTH PROTECTION
Sections:

4.100.010 Purposes.

4.100.020 Authority.

4.100.030 Definitions.

4.100.040 Smoking prohibitions – Public places.

4.100.050 Places where smoking is permissible.

4.100.060 Violation and penalties.

4.100.010 Purposes.

The U.S. Environmental Protection Agency (EPA) has determined that tobacco smoke is a major source of indoor air pollution and the Surgeon General’s 1986 report on the health consequences of involuntary smoking concludes that exposure to tobacco smoke places healthy nonsmokers at increased risk for developing lung cancer. Other health hazards of involuntary smoking include respiratory infection, decreased exercise tolerance, decreased respiratory function, bronchoconstriction, and bronchospasm. While all members of the population are truly at increased risk due to exposure to sidestream tobacco smoke, it constitutes a special health hazard for children, the elderly and people with chronic lung disorders.

The Surgeon General labels smoking “the largest single preventable cause of death and disability for the U.S. population.”
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More than 80 percent of El Dorado County residents are nonsmokers, and the number of nonsmokers is steadily increasing. Opinion surveys show that a majority of both nonsmokers and smokers favor restrictions on smoking in public places.

Air pollution caused by smoking is an offensive annoyance and irritant. Smoking results in serious and significant physical discomforts of nonsmokers, and constitutes a public nuisance in public places.

This chapter attempts to find a compromise that allows smokers to smoke, and others to breathe smoke-free air.

Health and Safety Code section 11362.3 prohibits smoking cannabis or cannabis products in a public place and in a location where smoking tobacco is prohibited.

This chapter is not to be interpreted as requiring any establishment to provide a smoking area.

4.100.020 Authority.

This chapter is enacted pursuant to Health and Safety Code section 118910 for the purpose of restricting and regulating smoking in public places in order to reduce the hazards and nuisances which smoking causes to those who are involuntarily exposed.

4.100.030 Definitions.

As used in this chapter, the words and phrases shall have the following meanings:

A. “Person” means any natural person, partnership, corporation, unincorporated association, joint venture, business trust, joint stock company, club, or other organization of any kind.

B. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated pipe, cigar, cigarette, or any other lighted or heated tobacco or plant product intended for inhalation, in any manner or in any form. Smoking includes the use of an electronic smoking device that creates an aerosol or a vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.

C. “Tobacco shop” means any business establishment, the main purpose of which is the sale of tobacco products, including, but not limited to, cigars, pipe tobacco, and smoking accessories.

4.100.040 Smoking prohibitions – Public places.

Except as specifically provided, it is unlawful for any other person to smoke in the public places named and described in subsections (A) through (C) of this section, inclusive, and other public places similarly situated, including but not limited to the following areas:

A. Outdoor public recreation areas owned, operated, or maintained by the city, including parks and beaches as defined in SLTCC 8.05.010, golf courses, and campgrounds; B. Parking lots, parking structures, and parking areas owned, operated, or maintained by the city; and
C. Other places in which members of the general public congregate or otherwise frequent.

4.100.050 Places where smoking is permissible.

Smoking may be permitted in all locations where smoking is not prohibited by this chapter, including the following locations:
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A. Residential units, including those which are used for home occupations under the provisions of SLTCC 6.55.280; provided, however, that this exemption shall not authorize smoking in any day care or child care facility.

B. Areas where smoking is permitted within certain workplace areas under Labor Code section 6404.5, as may be amended.

It shall not constitute a violation of SLTCC 4.100.040 for a person to smoke in a location where smoking has been authorized in the manner prescribed by this section.

4.100.060 Violation and penalties – Smoking or posting.

Any person who violates the prohibitions contained in SLTCC 4.100.040 shall be guilty of an infraction, punishable in the manner hereinafter prescribed:

A. A fine not exceeding $100.00 for a first violation.

B. A fine not exceeding $200.00 for a second violation of this chapter within one year.

C. A fine not exceeding $500.00 for each additional violation of this chapter within one year.

SECTION 2. Chapter 4.180 (Cannabis Public Safety License Ordinance) of the South Lake Tahoe City Code is amended to read in its entirety as follows:

Chapter 4.180

CANNABIS PUBLIC SAFETY LICENSE ORDINANCE
Section:

4.180.010 Purpose and intent.

4.180.020 Definitions.

4.180.030 Cannabis businesses – General provisions.

4.180.040 Cannabis public safety license – General provisions.

4.180.050 Public safety license and public safety license renewal – Approval and denial.

4.180.060 Expiration and renewal of cannabis public safety licenses.

4.180.070 Suspension and revocation by chief of police.

4.180.080 No vested rights.

4.180.010 Purpose and intent.

It is the purpose and intent of this chapter to establish a cannabis public safety license and the procedures for issuance of said license. A cannabis public safety license shall be required as a condition for the continued operation of any cannabis business as set forth in this chapter. The regulations in this chapter are meant to ensure the health, safety, and welfare of the residents of the city of South Lake Tahoe. Cannabis businesses within the city must comply with all provisions of the South Lake Tahoe City Code for obtaining permits and licenses for a cannabis business and must comply with the state cannabis laws and all other applicable local and state laws. Nothing in this chapter permits activities that are otherwise illegal under state or local laws.

4.180.020 Definitions.

As used in this chapter:
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“Applicant” means any person who is required to file an application for issuance of a cannabis public safety license to operate a cannabis business under this chapter, including without limitation an individual owner, operator, or agent of a cannabis business. “Application for renewal” shall mean an application for a renewed cannabis public safety license, which application may be submitted by a licensee.
“Cannabis” shall have the meaning set forth in Cal. Bus. & Prof. Code § 26001(f) and as subsequently amended.
“Cannabis business” shall include:
a. Any business, facility, use, establishment, property, or location, whether fixed or mobile, where a commercial cannabis activity takes place.
b. Any building, facility, use, establishment, property, or location where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a state license under Cal. Bus. & Prof. Code § 26000 and following, including but not limited to cannabis cultivation, cannabis distribution, cannabis manufacturing, cannabis testing and cannabis retail sales, and the operation of a cannabis microbusiness.
“Cannabis products” shall have the meaning set forth in Cal. Bus. & Prof. Code § 26001(k) and as subsequently amended.
“Cannabis use permit” shall mean a use permit issued for the operation of a cannabis business pursuant to Article X of Chapter 6.55 SLTCC.
“Commercial cannabis activity” shall include the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or acting as a cannabis event organizer for temporary cannabis events.
“Cultivation” shall mean any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Curbside delivery” shall mean a sale of cannabis or cannabis products from a licensed retail storefront or licensed microbusiness with retailer component that is delivered to a customer in their vehicle parked immediately outside the retail or microbusiness premises. “Licensee” shall mean the cannabis business owner identified to the city as such, and to whom a city cannabis public safety license has been issued.
“Operator” shall mean any person responsible for management of the cannabis business; any person listed as an officer, director, manager, or member in statement of information filed with the Secretary of State for a cannabis business; any person listed in a governing document for a cannabis business, such as bylaws, articles of incorporation, or operating agreement; any person owning an interest in the cannabis business, unless the interest is solely a security, lien, or encumbrance; and any person that supervises an employee of the cannabis business.
“Owner” shall have that meaning set forth in Cal. Bus. & Prof. Code § 26001(ap) and as it may be amended.
“Permittee” shall mean any person issued a cannabis use permit under Article X of Chapter 6.55 SLTCC.
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“Police chief” shall mean the chief of the city of South Lake Tahoe police department. “Property” shall mean the designated structure or structures and land specified in the cannabis use permit application that is owned, leased or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted. “State cannabis laws” means and includes Cal. Health & Safety Code §§ 11362.1 through 11362.45; Cal. Health & Safety Code § 11362.5 (Compassionate Use Act of 1996); Cal. Health & Safety Code §§ 11362.7 through 11362.83 (Medical Marijuana Program); Cal. Bus. & Prof. Code § 26000 et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)); all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; Cal.

Labor Code § 147.5; Cal. Rev. & Tax. Code §§ 34010 through 34021.5; Cal. Fish and Game Code § 12029; Cal. Water Code § 13276; all state regulations adopted by the Department of Cannabis Control; any license issued by the Department of Cannabis Control; and all other applicable laws of the state of California regulating cannabis or cannabis products. “State license” shall mean a license from the Department of Cannabis Control issued pursuant to Division 10 of the Cal. Bus. & Prof. Code.

4.180.030 Cannabis businesses – General provisions.

A. Cannabis Use Permit and Public Safety License Required to Operate. It shall be unlawful for any person to engage in, to conduct or carry on (or to permit to be engaged in, conducted or carried on) in or upon property located within the city the operation of a cannabis business unless that person has first obtained and continues to maintain in full force and effect a valid cannabis use permit issued by the city for that property and that type of cannabis business and a valid cannabis public safety license issued by the city to the owner and/or operator of the cannabis business, pursuant to this chapter.

B. Imposition of Public Safety License Fees.

1. Every application for a cannabis public safety license or renewal of such license shall be accompanied by a license fee in an amount set forth by separate resolution of the city council, which amount is calculated to recover the city’s full cost of reviewing, issuing and administering said license. The application fee shall include the standard city fees for fingerprinting, photographing, and background check costs and shall be in addition to any other business license fee or permit fee imposed by this code or other governmental agencies.

2. A fee for renewal of a public safety license will be due annually.

C. Conditions of Operation.

1. Security Plan. A licensee shall provide adequate security on the premises of the cannabis business. The following minimum security standards shall be maintained at all times:
a. Surveillance System.
i. Each cannabis business shall be monitored at all times by a digital closedcircuit television surveillance system. Surveillance systems shall meet any applicable state law requirements, including those set forth in Title 4 of the California Code of Regulations § 15044, and any subsequently enacted 518
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regulation. The camera and video recording surveillance system must be capable of providing surveillance of both interior and exterior areas of the cannabis business and must be of adequate quality, color rendition and resolution to allow the ready identification of an individual on or adjacent to the property. The recordings shall be maintained at the cannabis business or other location accessible to the police department for a period of not less than ninety (90) days.
ii. A sign shall be posted inside and at the entrances to the establishment indicating that the premises are under camera/video surveillance. iii. The surveillance system recordings shall be maintained in such manner as to allow remote access by the police department. The police chief may request that the permittee provide secured electronic access to video feeds of the surveillance system in real time, to be provided via an online portal or through other software deemed acceptable to the police chief. b. Loitering Adjacent to a Cannabis Business. Licensees shall take reasonable measures to reduce loitering by cannabis business members, patrons, guests and invitees in public areas, sidewalks, alleys and areas surrounding the property and adjacent premises during the business hours of the cannabis business. c. Identification Verification System. Each cannabis business shall require identification upon entry to the cannabis business and shall implement electronic verification of identification provided to ensure that applicable age restrictions in SLTCC 6.55.800(A)(5) are complied with.
d. Curbside Delivery. Curbside delivery of cannabis or cannabis products must occur under video surveillance that meets the requirements of SLTCC

4.180.030(C)(1)(a)(i) for recording point-of-sale areas. Retail employees engaging in curbside delivery must verify each customer’s age and identity.

2. Nuisances Prohibited. A licensee shall take reasonable steps to correct objectionable conditions that constitute a nuisance on any public sidewalk or public space abutting the cannabis business premises.
a. For purposes of this section, “objectionable conditions that constitute a nuisance” means public consumption of cannabis or cannabis products, disturbance of the peace, drug trafficking, disposing of litter or trash, or excessive loud noise. b. For purposes of this section, “reasonable steps” means all of the following:
i. Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee, or his or her agents or employees, shall not be construed as evidence of objectionable conditions that constitute a nuisance.
ii. Requesting those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his or her agents or employees, feels that their personal safety would be threatened in making that request. iii. Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. 519
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The licensee shall not be liable for the removal of those items that facilitate loitering.

3. State License Required to Operate. Operation of a cannabis business shall not commence until a licensee has obtained a valid state license. Licensees shall maintain a valid state license at all times during operation of a cannabis business.

D. Inspection of Cannabis Business.

2. No licensee or any other person shall refuse, impede, obstruct, or interfere with an inspection pursuant to this chapter.

4.180.040 Cannabis public safety license – General provisions.

A. Application Procedures.

1. Public safety license application must be approved prior to the applicant initiating the cannabis use permit application process as set forth more fully in Article X of Chapter

6.55 SLTCC.

2. The city council may set further application procedures and requirements by separate resolution.

1. Eligibility for Filing. Public safety license applications and applications for renewal or amendment shall be filed by the owner and/or operator of the cannabis business. 520
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2. Cannabis public safety license applications and applications for renewal or amendment shall include:
a. For each licensee, owner, operator and employee of the cannabis business, a fully legible copy of one valid government-issued form of photo identification, such as a state driver’s license or identification card. Acceptable forms of government-issued identification include, but are not limited to, driver’s license or photo identity cards issued by the State Department of Motor Vehicles (or equivalent), a passport issued by the United States or by a foreign government, U.S. Military ID cards (active duty or retired military and their dependents) or a permanent resident card. b. If the cannabis business is incorporated, a certified copy of the articles of organization, certificate(s) of amendment, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business. c. If the cannabis business is a limited liability company, a certified copy of the articles of organization, certificate(s) of amendment, operating agreement, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business.
d. If the cannabis business is an unincorporated association, a copy of the articles of association and any filings made with the California Secretary of State. e. The name, address, electronic mail address and mobile phone number of the applicant’s or licensee’s current designated agent for service of process. f. Emergency Contact. The name, electronic mail address, and mobile phone number of an owner, operator, or manager to act as an on-site community relations staff person to whom the city may provide notice of any operating problems associated with the cannabis business.
g. A statement dated and signed by each applicant, under penalty of perjury, that the applicant has personal knowledge of the information contained in the application, that the information contained therein is true and correct.

C. Ongoing Filing and Reporting Requirements. Where a cannabis business or licensee replaces, hires, appoints or employs new operators and/or employees to its cannabis business, all such operators and employees shall be required to submit to fingerprinting and a criminal background investigation pursuant to subsection (B)(3) of this section. A cannabis business or licensee has an ongoing obligation to immediately report to the police chief any conviction for an offense listed in SLTCC 4.180.050(A)(3) imposed on an owner, operator and/or employee of the cannabis business or licensee. A cannabis business or licensee shall also have an 521
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ongoing obligation to immediately report to the chief of police any of the events listed in SLTCC 4.180.050(A)(4) or (A)(5).

4.180.050 Public safety license issuance, renewal, and amendment – Approval and denial.

1. The applicant and each owner, operator and employee of the cannabis business have authorized and completed fingerprinting.

2. The applicant and each owner, operator and employee of the cannabis business have authorized the use of their fingerprinting results to run a state and nationwide criminal background check.

The following offenses are substantially related to the qualifications, functions, or duties of a cannabis business:
a. A violent felony conviction, as specified in Cal. Penal Code § 667.5(c). b. A serious felony conviction, as specified in Cal. Penal Code § 1192.7(c). c. A felony conviction involving fraud, deceit, or embezzlement. d. 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.
e. A felony conviction for drug trafficking with enhancements pursuant to Cal. Health & Safety Code § 11370.4 or 11379.8.
f. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license.

6. Security Plan. The applicant or licensee has provided a security plan providing the minimum standards set forth in SLTCC 4.180.030(C)(1).

7. Minimum Age. The applicant or licensee, and each owner, operator and employee of the cannabis business, is at least 21 years of age.
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B. Criteria for Denial. Cannabis public safety licenses shall not be issued, renewed, or amended where the chief of police confirms that one or more of the criteria set forth in subsection (A) of this section have not been met. If the chief of police denies the cannabis public safety license application or application for renewal or amendment, he or she shall specify in writing the reasons for the denial of the application or application for renewal, and notify the applicant that the decision shall become final unless the applicant seeks an appeal pursuant to subsection (C) of this section.

C. Appeal from Chief of Police Determination. An applicant who disagrees with the chief of police’s decision to approve or deny a cannabis public safety license application or application for renewal or amendment may appeal the decision to the city council in accordance with the appeal provisions of Chapter 2.35 SLTCC, Administrative Appeals.

4.180.060 Expiration and renewal of cannabis public safety licenses.

A. Cannabis public safety licenses shall expire one year after their issuance.

D. An application for renewal shall be subject to all filing requirements set forth in SLTCC

4.180.040(B) and (C).

E. The chief of police shall issue or deny an application for renewal in accordance with the provisions of SLTCC 4.180.050.

4.180.070 Suspension and revocation by chief of police.

A. A cannabis public safety license issued under the terms of this chapter shall be suspended or revoked by the chief of police if he or she concludes any of the following:

1. The cannabis business or licensee has violated any of the requirements of this chapter.

2. The cannabis business is being operated in a manner which violates the security plan required by this chapter.

3. The cannabis business is being operated in a manner which constitutes a nuisance.

4. The cannabis business has failed to comply with the conditions of operation set forth in SLTCC 4.180.030(C).

5. The cannabis business has ceased to operate for 30 days or more.

4.180.050(A)(3).

7. The applicant has been convicted, cited, fined, or penalized by any state or any city, county, or city and county, or enjoined by any court of law, in the five years immediately 523
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preceding the application for a cannabis public safety license or cannabis public safety renewal license, for any unauthorized cannabis activities.

9. The cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.

10. A licensee’s cannabis use permit issued pursuant to Chapter 6.55 SLTCC has been terminated or revoked.

11. A licensee has attempted to transfer or has transferred a cannabis public safety license to another person or entity.

12. A licensee’s state license has been suspended, terminated, or revoked.

4.180.080 No vested rights.

SECTION 3. Article X (Cannabis Regulations) of Chapter 6.55 of the South Lake Tahoe City Code is amended to read in its entirety as follows:

Article X. Cannabis Regulations

6.55.700 Purpose and intent.

6.55.710 Definitions.

6.55.720 Residential cultivation of cannabis.

6.55.730 Cannabis businesses – Use permit, development agreement, and public safety license required.

6.55.740 Cannabis businesses – General provisions.

6.55.750 Cannabis use permit application requirements.

6.55.760 Review, issuance, and/or denial of cannabis use permit applications.

6.55.770 Appeal from planning commission determination.

6.55.780 Suspension and revocation by planning commission.

6.55.790 [Reserved]

6.55.800 Cannabis businesses – Conditions of operation.

6.55.810 Business license tax liability.
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6.55.820 No vested rights.

6.55.830 Public nuisance.

6.55.700 Purpose and intent.

It is the purpose and intent of this article to regulate the cultivation, manufacturing, testing, and sales of medical and adult-use cannabis in order to ensure the health, safety, and welfare of the residents of the city of South Lake Tahoe. The regulations in this article are meant to ensure compliance with the state cannabis laws and are not intended to and do not interfere with a patient’s right to use medical cannabis as authorized by the state cannabis laws. Nor do these regulations criminalize the possession or cultivation of cannabis for medical or nonmedical purposes as permitted by the state cannabis laws. Cannabis businesses within the city must comply with all provisions of the city code for obtaining permits for a cannabis business and must comply with the state cannabis laws and all other applicable local and state laws.

6.55.710 Definitions.

For the purposes of this article, the following words and phrases shall have the following meanings:
“Applicant” means any person who is required to file an application for a cannabis use permit to operate a cannabis business under this article, including without limitation an individual owner, operator, or agent of a cannabis business.
“Cannabis” shall have the meaning set forth in Section 26001(f) of the Business and Professions Code and as subsequently amended.
“Cannabis business” shall include:
a. Any business, facility, use, establishment, property, or location, whether fixed or mobile, where a commercial cannabis activity takes place.
b. Any building, facility, use, establishment, property, or location where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a state license under Business and Professions Code Section 26000 and following, including but not limited to cannabis cultivation, cannabis distribution, cannabis manufacture, cannabis testing and cannabis retail sales, and the operation of a cannabis microbusiness. “Cannabis product” shall have the same meaning as in Section 11018.1 of the Health and Safety Code.
“Canopy” means all areas occupied by any portion of a cannabis plant, encompassing all vertical planes (i.e., stacking of plants), whether contiguous or noncontiguous on any one site. The canopy shall be measured by taking the longest length and widest width of existing plants (including all gaps, walkways, and open areas between plants) and multiplying the longest length by the longest width to get the area of the cannabis canopy. Each level of a stacked cultivation will be calculated as a separate canopy.
“Commercial cannabis activity” shall include the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or acting as a cannabis event organizer for temporary cannabis events.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
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“Cultivator” means any cannabis business engaged in cultivation activities, but specifically excluding cultivation in a private residence or accessory dwelling unit authorized pursuant to SLTCC 6.55.720. “Day care center” shall have that meaning as set forth in Section 1596.76 of the Health and Safety Code.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer or patient. “Delivery” also includes the use by a retailer of any technology platform. “Delivery operation” means a cannabis business that engages in or otherwise provides deliveries. “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees.
“Distributor” means any cannabis business engaged in distribution. “Drug paraphernalia” shall have the meaning set forth in California Health and Safety Code Section 11014.5, and as subsequently amended.
“Edible cannabis product” means cannabis that is intended to be used, in whole or in part, for human consumption.
“Extraction” means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.
“Identification card” shall have the meaning set forth in California Health and Safety Code Section 11362.7(g), and as may be amended from time to time.
“Manufacture” means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a cannabis product.
“Manufacturer” means any cannabis business that conducts any activities involving the manufacture of a cannabis product.
“Medicinal cannabis” or “medicinal cannabis product” shall have the meaning set forth in California Business and Professions Code Section 26001(al)(1), which includes cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at California Health and Safety Code Section 11362.5, by a medicinal cannabis patient in California who possesses a physician’s recommendation. “Microbusiness” means a cannabis business that engages in commercial cannabis activities of at least three of the following types of cannabis businesses: retailer, distributor, manufacturer, cultivator. “Operator” shall mean any person responsible for management of the cannabis business; any person listed as an officer, director, manager, or member in the Statement of Information filed with the Secretary of State for a cannabis business; any person listed in a governing document for a cannabis business, such as bylaws, articles of incorporation, or operating agreement; any person owning an interest in the cannabis business, unless the interest is solely a security, lien, or encumbrance; and any person that supervises an employee of the cannabis business. “Owner” shall have that meaning set forth in Section 26001(ap) of the Business and Professions Code and as it may be amended.
“Package” or “packaging” means any container or wrapper that may be used for enclosing or containing any cannabis or cannabis products. The term “package” does not include any shipping 526
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container or outer wrapping used solely for the transportation of cannabis or cannabis products in bulk quantity to another licensee or licensed premises. “Park” shall mean any land, with public access, intended to provide recreation. For the purposes of this article, “park” also includes public beaches.
“Permittee” shall mean any person issued a cannabis use permit under this article. “Physician” shall mean a licensed medical doctor, including a doctor of osteopathic medicine as defined in the California Business and Professions Code. “Property” shall mean the designated structure or structures and land specified in the cannabis use permit application that is owned, leased or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted. “Retailer” means any cannabis business that engages in the sale of cannabis or cannabis products to customers, including medical and adult-use cannabis or cannabis products. “School” means any public or private school providing instruction in kindergarten or any of grades one to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.
“State cannabis laws” means and includes California Health and Safety Code Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program); California Business and Professions Code Section 26000 et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)); all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted by the Department of Cannabis Control; any license issued by the Department of Cannabis Control; and all other applicable laws of the state of California regulating cannabis or cannabis products. “Testing laboratory” means a laboratory, facility, or entity that offers or performs tests of cannabis or cannabis products and is licensed by the Department of Cannabis Control. “Youth centers” shall mean any youth center, as defined in Section 11353.1(e)(2) of the Health and Safety Code, any playground, as defined in Section 11353.1(e)(1) of the Health and Safety Code, and any child day care facility, as that term is defined in Section 1596.750 of the Health and Safety Code.

6.55.720 Residential cultivation of cannabis.

B. Amortization of Existing Residential Cultivation Permits. All residential cultivation permits previously issued by the city are hereby deemed amortized and are null and void. 527
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C. No Vested Rights. No person(s) shall have any vested rights to any permit, right or interest under this article, regardless of whether such person(s) cultivated cannabis prior to adoption of the ordinance codified in this article.

1. Odors which are disturbing to people of normal sensitivity residing or present on adjacent or nearby properties or areas open to the public;

2. More than three substantiated responses to valid confirmed complaints in a one-year time period to the residence from law enforcement officers;

3. More than three disruptions in a one-year time period to the free passage of persons or vehicles in the neighborhood;

4. Excessive noise which is disturbing to people of normal sensitivity on adjacent or nearby properties or areas open to the public in accordance with SLTCC 4.70.160;

E. Environment. Runoff and waste disposal by the residence where cultivation occurs must be in compliance with any applicable city, county, regional, state, and federal laws and regulations.

A violation of any applicable city, county, regional, state, or federal law will be deemed a violation of this article.

F. Cultivation of cannabis in residences shall be in conformance with the following requirements:

1. Cultivation shall only occur in fully enclosed and secure structures. All outdoor cultivation of cannabis is strictly prohibited.

2. Cultivation shall only occur in residences which are in full compliance with the city code, including the building code and fire code.

3. No cooking, baking, or alteration as to form and substance of cannabis for commercial purposes, and/or sale, is permitted in a residence which cultivates cannabis.

4. From a public right-of-way, there shall be no exterior evidence of cannabis cultivation occurring at the residence.

6.55.730 Cannabis businesses – Use permit and public safety license required.

It shall be unlawful for any person to engage in, to conduct or carry on (or to permit to be engaged in, conducted or carried on) in or upon property located within the city, the operation of a cannabis business unless that person has first obtained and continues to maintain in full force and effect: a valid cannabis use permit issued by the city for that property and a valid cannabis public safety license issued by the city to the owner and/or operator of the cannabis business, pursuant to Chapter

4.180 SLTCC.

6.55.740 Cannabis businesses – General provisions.

A. Cannabis Businesses Allowed.
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2. No more than one cannabis business may exist in the same suite or unit on a lot or parcel of property.

3. An owner and/or operator of a cannabis business may not own or operate more than one retail cannabis business, including a microbusiness with a retailer component, within the city.

4. No more than four retailers are permitted in the city, including microbusinesses with a retailer component. Delivery operations of medicinal cannabis to medicinal cannabis patients or their primary caregivers within the city that originate from retailers outside the city’s jurisdictional limits are not subject to this limitation.

6. No more than two cultivators are permitted in the city.

7. No more than four manufacturers are permitted in the city.

B. Limitations on Location.

1. Permissible Zoning. Subject to limitations described in this article and other parts of SLTCC Title 6, and applicable regulations of the Tahoe Regional Planning Agency, cannabis businesses may operate only in a location where such land use will be consistent with the land uses authorized under the applicable area plan, plan area statement, and/or community plan for such location. Table 6.55.740 sets forth the applicable permissible use categories for each type of cannabis business. 529
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Table 6.55.740
City Cannabis
Business Type
TRPA Permissible
Use Categories
a. Retailers
(including delivery
operations)
“food and beverage
retail sales” and
“general
merchandise stores”
b.

Microbusinesses
i. Retailer See a.
ii. Distributor See f.
iii.

Manufacturer
See e.
iv. Cultivator See d.
c. Testing labs “industrial services”
d. Cultivators “industrial services”
e. Manufacturers “food and kindred
products” and “small
scale
manufacturing”*
f. Distributors “wholesale and
distribution”
* The applicable TRPA permissible use category for a manufacturer will depend on the type of cannabis product being manufactured.

C. Transfer of Cannabis Use Permits.
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4. Transfer without Permission. Any attempt to transfer a cannabis use permit either directly or indirectly in violation of this chapter is declared void, and the permit shall be deemed revoked.

6.55.750 Cannabis use permit application requirements.

A. Cannabis Public Safety License. Applicants seeking a cannabis use permit to operate a cannabis business within the city shall first submit an application for a cannabis public safety license. Upon the chief of police’s, or their designee’s, approval of the application for a cannabis public safety license, the applicant may submit an application for a cannabis use permit to operate a cannabis business.

B. Except as set forth in this article, applications for cannabis use permits shall be processed consistent with Article VII (Use Permits and Variances). The city manager, or their designee, may recommend, and the city council may establish by resolution, any necessary procedures and application requirements.

C. Use Permits for Retailers, Cultivators, Manufacturers, Distributors, and Microbusinesses.

Because only a limited number of retailers, cultivators, manufacturers, distributors, and microbusinesses are permitted, an application period for these businesses shall be established that allows applicants to be placed on a qualified applicant list. The process and selection criteria for selection of the best applicants to be placed on the qualified applicant list shall be established by resolution of the city council.

E. Site Plan. Applicants shall submit a site plan that shall include a floor plan, and a scaled premises diagram showing the boundaries of the cannabis business and property with all 531
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boundaries, dimensions, entrances and exits, interior partitions and walls, with labeling of each room, windows and common shared entryways. If the proposed cannabis business consists of only a portion of the property, the diagram shall be labeled indicating which part of the property is the proposed cannabis business and what the remaining property is used for.

6.55.760 Review, issuance, and/or denial of cannabis use permit applications.

A. Criteria for Issuance. In addition to the required findings for issuance of a special use permit in SLTCC 6.55.620(B), the planning commission, or the city council on appeal, shall make all of the following findings in determining whether to grant, modify, or deny a cannabis use permit for any cannabis business:

1. If the cannabis business is a microbusiness, retailer, manufacturer, distributor, or cultivator, the applicant is on the qualified applicant list established and maintained by the city.

2. The cannabis use permit application is complete and the applicant has submitted all information and materials required.

3. The proposed location of the cannabis business will comply with the buffer requirements in SLTCC 6.55.740(B) and is not likely to have a potentially adverse effect on the health, peace, or safety of persons due to the proximity of the proposed cannabis business to a school, youth center, park, church, state licensed drug or alcohol treatment facility, or hospital.

5. The design of the cannabis business is compatible with the city’s design guidelines.

6. The property is located on a property which is consistent with all development standards of this title.

7. The location is not prohibited under the provisions of this title or any local or state law, statute, rule, or regulation.

B. Supplemental Findings – Cannabis Testing Laboratory. In addition to the findings required for the approval of a cannabis use permit as set forth in subsection (A) of this section, the 532
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planning commission, or the city council on appeal, shall consider the following supplemental findings in determining whether to grant, modify, or deny a cannabis use permit for a testing lab:

1. The owners, permittees, operators, and employees of the testing lab will not be associated with any other form of commercial cannabis activity.

2. The testing lab meets the accreditation requirements set forth in Business and Professions Code Section 26100(h) and any applicable regulations enacted by the Department of Cannabis Control.

1. The cultivation of cannabis for commercial purposes shall only be cultivated within a fully enclosed space.

2. The cultivation of cannabis for commercial purposes shall be limited to 22,000 square feet of total canopy size per property.

3. The cultivation of cannabis will be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.

1. The manufacturer shall be limited to 2,500 square feet of fully enclosed space.

E. Criteria for Denial. The planning commission shall deny an application that meets any one of the following criteria:
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3. Any person who is listed on the application or is an owner or operator is less than 21 years of age;

4. The proposed cannabis business does not comply with the provisions of this article or state cannabis laws; and

5. The planning commission is unable to make a required finding contained in this section.

G. Indemnification. Cannabis use permits shall contain a condition requiring the dispensary, through its management members, to execute an agreement in a form approved by the city attorney whereby the cannabis business (1) releases the city, and its agents, officers, elected officials, and employees from any injuries, damages, or liabilities of any kind that result from any arrest or prosecution of the cannabis business or its management members, employees, or members for violation of state or federal laws, (2) defends, indemnifies and holds harmless the city and its agents, officers, elected officials, and employees for any claims, damages, or injuries brought by any party arising out of the city’s decision to permit the operation of the cannabis business, and (3) defends, indemnifies and holds harmless the city and its agents, officers, elected officials, and employees for any claims, damages, or injuries of any kind brought by adjacent or nearby property owners or other third parties due to the operations at the cannabis business.

6.55.770 Appeal from planning commission determination.

6.55.780 Suspension and revocation by planning commission.

A. Authority to Suspend or Revoke a Cannabis Use Permit. Any permit issued under the terms of this article may be suspended or revoked by the planning commission.

B. A cannabis use permit may be revoked if it appears to the planning commission that the cannabis business has violated any of the requirements of this article or the security plan required pursuant to Chapter 4.180 SLTCC, or the cannabis business is being operated in a manner which constitutes a nuisance, or the cannabis business has ceased to operate for 30 days or more, or the owner or operator of the cannabis business fails to maintain a valid and current public safety license, or the cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.
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C. Any cannabis use permit revoked pursuant to this section shall be deemed to be expired and shall no longer entitle the permittee to any uses authorized by the cannabis use permit.

D. Revocation, expiration or nullification of a cannabis public safety license pursuant to SLTCC

4.180.060 and 4.180.070 shall automatically terminate the cannabis use permit issued to the licensee and shall terminate the ability of the licensee to operate a cannabis business without initiation of revocation proceedings by the planning commission.

E. Annual Review of Cannabis Businesses. The development services department is hereby authorized to conduct an annual review of the operation of each permitted cannabis business within the city for full compliance with the operational, record-keeping, nuisance and other requirements of this article, in coordination with any other departments of the city. Each cannabis business shall pay a fee in an amount established by resolution of the city council which shall be collected in order to reimburse the city for the time involved in the annual review process. The staff may initiate a permit suspension or revocation process for any cannabis business which, upon completion of an annual review, is found not to be in compliance with the requirements of this chapter or which is operating in a manner which constitutes a public nuisance. Staff may, based upon its annual review of the operation of a cannabis business, place on a planning commission meeting agenda, a proposal to suspend or revoke a cannabis use permit.

6.55.800 Cannabis businesses – Conditions of operation.

A. All Cannabis Businesses. All cannabis businesses shall be operated, maintained, and managed on a day-to-day basis in compliance with the following operational conditions and requirements:

1. State Licensing and Compliance with State Cannabis Laws. The city recognizes that state law requires dual licensing at the state and local level for all cannabis businesses.

All operators shall therefore be required to diligently pursue and obtain a state cannabis license at such time as the state begins issuing such licenses, and shall comply at all times with all applicable state cannabis laws.

3. Employees. It shall be unlawful for the applicant, owner, operator, or any other person effectively in charge of any cannabis business to employ any person who is not at least 21 years of age.

4. Minors. Persons under the age of 21 years shall not be allowed on the premises of a cannabis business unless they are a qualified patient. The entrance to each cannabis business shall have, clearly and legibly posted, a notice indicating that persons under the age of 18 are prohibited from entering the premises unless they are a qualified patient and they are in the presence of their parent or guardian.

5. Every cannabis business shall display, at all times during its regular business hours, the cannabis use permit and cannabis public safety license issued for such cannabis business in a conspicuous place so that the same may be readily seen by all persons entering the cannabis business.
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6. No cannabis business shall hold or maintain a license from the State Department of Alcoholic Beverage Control for the sale of alcoholic beverages, or operate a business on the premises of the cannabis business that sells alcoholic beverages, or otherwise allow alcoholic beverages to be possessed, distributed, or consumed on the premises.

7. No cannabis business shall be a retailer of tobacco products.

8. Operation of a cannabis business shall not result in illegal redistribution or sale of cannabis obtained, or the use or distribution in any manner which violates state cannabis laws or this article.

9. Odors. All cannabis businesses shall be sited and/or operated in a manner that prevents cannabis odors from being detected off site. All structures utilized for indoor cannabis cultivation shall be equipped and/or maintained with sufficient ventilation controls (e.g., carbon scrubbers) to eliminate nuisance odor emissions from being detected off site.

10. Security. The cannabis business shall at all times comply with all elements of its security plan, submitted as a part of its cannabis public safety license application pursuant to Chapter 4.180 SLTCC.

11. Signage and Advertising. The cannabis business shall comply with all applicable provisions of Chapter 6.40 SLTCC and any applicable Tahoe Regional Planning Agency regulations. All advertising shall comply with Business and Professions Code Section 26151.

12. On-Site Consumption. On-site consumption shall be prohibited.

13. Additional Conditions. The planning commission may impose additional conditions which it deems necessary to ensure that operation of the cannabis business will be in accordance with the standards and regulations provided in this title, the standards set forth by separate resolution of the city council, and applicable state laws.

1. Retailers may not sell drug paraphernalia and implements that may be used to ingest or consume cannabis except where such sales and operations comply with Health and Safety Code Section 11364.5.

4. Hours of Operation. Retailers may only operate during the hours between 6:00 a.m. through 10:00 p.m. The planning commission may further restrict a retailer’s days and hours of operation as a condition of a cannabis use permit. A retailer shall post its 536
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approved days and hours of operation on a sign located on the street frontage of the cannabis business in a manner consistent with the city’s sign regulations. Delivery operations of medicinal cannabis to medicinal cannabis patients or their primary caregivers are not subject to these limited hours of operation.

5. Retailers shall not have a physician on-site to evaluate patients and/or provide recommendations for the use of medical cannabis.

7. Retailers shall make available lock bags on site for purchase or shall provide information on how to obtain a lock bag.

1. Outdoor commercial cultivation prohibited. The cultivation of cannabis for commercial purposes may only be cultivated within a fully enclosed space.

2. The cultivation of cannabis for commercial purposes shall be limited to 22,000 square feet of total canopy size per property.

4. Screening. Cannabis plants shall not be visible from any location beyond the property.

6. Cultivators may not engage in retail sales at the same property as cultivation.

1. Delivery operations shall only be operated by a permitted cannabis retailer that has a physical location and a retail storefront in the city open to the public. A cannabis retailer shall not conduct sales exclusively by delivery. Delivery operations of medicinal cannabis to medicinal cannabis patients or their primary caregivers within the city that originate from retailers outside the city’s jurisdictional limits are not subject to this 537
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limitation, but any such delivery operation is required to obtain a public safety license under Chapter 4.180 SLTCC.

2. Microbusinesses undertaking manufacturing activity shall utilize only extraction processes that employ nonvolatile solvents for the purposes of extracting cannabinoids and processes that are recognized as safe pursuant to the Federal Food, Drug, and Cosmetic Act. Microbusinesses undertaking manufacturing activity shall maintain a license of the “Type 6,” “Type N,” or “Type P” license categories, as defined in Title 4 of the California Code of Regulations, Section 17006, as may be amended.

3. The cultivation of cannabis for commercial purposes by microbusinesses shall be limited to 10,000 square feet of total canopy size per property.

1. Manufacturers shall not engage in on-site retail sales of cannabis or cannabis products.

2. Manufacturers shall utilize only extraction processes that employ nonvolatile solvents and are recognized as safe pursuant to the Federal Food, Drug, and Cosmetic Act.

2. Distributors may not sell cannabis products directly to consumers, and cannabis distribution facilities shall be fully enclosed and inaccessible to the general public.

H. Maintenance, Access to, and Inspection of Records.

1. Every cannabis business shall maintain on-site, at the property designated for the operation of the cannabis business, all records of the cannabis business.

2. Financial Records. The cannabis business shall maintain a written accounting record or ledger of all cash, receipts, credit card transactions, reimbursements, (including any inkind contributions), and any and all reasonable compensation for services provided by the cannabis business, as well as records of all operational expenditures and costs incurred by the cannabis business in accordance with generally accepted accounting practices and standards typically applicable to business records.

Such representative may also require the cannabis business to also provide access to such financial records electronically. It shall be unlawful for any owner, operator, or any other person having any responsibility over the operation of the cannabis business to refuse to allow, impede, obstruct or interfere with an inspection of the cannabis business or the required records thereof.

6.55.810 Business license tax liability.

6.55.820 No vested rights.

6.55.830 Public nuisance.

SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 5. The City Council finds that the 2030 General Plan EIR adequately addresses the potential environmental impacts of the proposed ordinance and that no further environmental analysis is required to comply with the California Environmental Quality Act (CEQA), and CEQA Guidelines section 15162 because the proposed ordinance is within the scope of the previous EIR and there are no substantial changes to the project or the circumstances that require major revisions to the previous EIR due to new significant environmental effects, new information of substantial importance that shows the project will have significant effects not discussed in the previous EIR, significant effects previously examined would be more severe, or mitigation measures or alternatives previously found not to be feasible would substantially reduce one or more significant effects.

SECTION 6. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law.

SECTION 7. This Ordinance shall become effective 30 days following its adoption.

Adopted by the City of South Lake Tahoe City Council on January 9, 2024 by the following vote:

Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Mayor
Attest:
________________________
Susan Blankenship, City Clerk
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First Reading:

Published:

Second Reading:

Effective:

The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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Chapter 4.100

CLEAN INDOOR AIR AND HEALTH PROTECTION
Sections:

4.100.010 Purposes.

4.100.020 Authority.

4.100.030 Definitions.

4.100.040 Smoking prohibitions – Public places.

4.100.050 Smoking prohibitions – Workplaces.

4.100.060 050 Places where smoking is permissible.

4.100.070 Exemption procedures.

4.100.080 Posting requirements.

4.100.090 Retaliation prohibited.

4.100.100 060 Violation and penalties – Smoking or posting.

4.100.110 Retaliation remedies.

4.100.120 Enforcement.

4.100.130 Provision to repeal ordinance.

4.100.010 Purposes.

The Surgeon General labels smoking “the largest single preventable cause of death and disability for the U.S. population.”
Employees subject to prolonged exposure to sidestream smoke in the workplace have been found in scientifically conducted studies to experience a decrease in job productivity and some have been forced to take periodic sick leave because of reactions to secondhand smoke. Furthermore, studies have shown higher costs to the employer are associated with smoking in the workplace due to increases in absenteeism, accidents, costs of medical care, loss of productivity, and cleaning and maintenance requirements. A recent scientific study has reported that sidestream smoke from tobacco may cause a significant amount of cardiovascular disease in the United States and that the number of deaths from this cause may exceed the deaths caused by lung disease associated with sidestream smoke. Smoking in public places and workplaces is a major cause of fires and damage to merchandise and equipment as well as costly maintenance and repairs to furniture and fixtures. The health care costs produced by smoking related ailments and diseases constitute a heavy and avoidable financial drain on our community. 542
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More than 80 percent of El Dorado County residents are nonsmokers, and the number of nonsmokers is steadily increasing. Opinion surveys show that a majority of both nonsmokers and smokers favor restrictions on smoking in public places and places of employment.

This chapter attempts to find a compromise that allows smokers to smoke, and others to breathe smoke-free air.

Health and Safety Code section 11362.3 prohibits smoking cannabis or cannabis products in a public place and in a location where smoking tobacco is prohibited.

This chapter is not to be interpreted as requiring restaurants or barsany establishment to provide a smoking area.

4.100.020 Authority.

This chapter is enacted pursuant to the provisions of the Health and Safety Code section 118910 for the purpose of restricting and regulating smoking in public places and in places of work in order to reduce the hazards and nuisances which smoking causes to those who are involuntarily exposed.

4.100.030 Definitions.

As used in this chapter, the words and phrases identified in SLTCC 4.100.010 through 4.100.120 shall have the following meanings:

A. “Bar” means an area which is devoted to the serving of alcoholic beverages for consumption on the premises and in which the serving of food, if any, is incidental to the consumption of alcoholic drinks. When a bar is operated within a building in conjunction with another use, such as a restaurant, only the area utilized primarily for the consumption of alcoholic beverages shall constitute the bar. The dining area of a restaurant utilized primarily for the serving and consumption of food shall not constitute a bar, even though alcoholic beverages may be served therein. An establishment that serves food in the bar, and where there are fewer seats where food is served in the bar than seats at the bar, qualifies as a bar.

B. “Commercial enterprise” shall mean any business entity formed for profit-making purposes, including professional corporations and other entities under which legal, medical, dental, engineering, architectural, or other professional services are delivered, and shall also include any person charged with the responsibility of controlling conduct on behalf of the above described enterprises upon any premises regulated by provisions of this chapter.

C. “Nonprofit entity” shall mean corporation, unincorporated association or other entity created for charitable, philanthropic, educational, character building, political, social or other similar purposes, the net proceeds from the philanthropic, educational, character building, political, social or other similar purposes, the net proceeds from the operations of which are committed to promotion of the objects or purposes of the organization and not to private gain, together with 543
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any person charged with the responsibility of controlling conduct on behalf of the above described entities upon any premises regulated by the provisions of this chapter. A public agency is not a “nonprofit entity” within the meaning of this section.

DA. “Person” means any natural person, partnership, corporation, unincorporated association, joint venture, business trust, joint stock company, club, or other organization of any kind, except the county or any other public agency.

E. “Enclosed area” shall mean all space between a floor and ceiling which is served by a common heating, ventilating or air conditioning system, and is enclosed on all sides by solid walls or windows (exclusive of door or passageways) which extend from the floor to the ceiling, including all space therein screened by partitions which do not extend to the ceiling or are not solid, “office landscaping,” or similar structures.

F. “Members of the general public” includes shoppers, customers, patrons, patients, students, clients and other similar invitees of a commercial enterprise or nonprofit entity, but excludes employees thereof, sales representatives, service repair persons, and persons delivering goods, merchandise or services to a commercial enterprise, nonprofit entity or county.

G. “Office” means an area enclosed by walls containing a desk, table or similar furnishings for clerical, administrative or supervisory work, a complex of such enclosures and a building containing such enclosures whether or not the building is utilized primarily for other purposes such as retailing, wholesaling or storage, or manufacturing, together with all hallways, stairways, elevators, escalators, restrooms, lobbies, waiting rooms, reception areas, entry areas, and conference rooms within or associated with the complex of such enclosures, including:

1. Legal, medical, dental, engineering, accounting, counseling and other professional offices;

2. Insurance, real estate, ticket, collection agency, and other offices where business services are offered to or goods or services are offered to or may be ordered by or may be paid for by members of the general public.

H. “Lobby/reception area” means an area that must be passed through in order to get to another destination.

I. “Restaurant” means any coffee shop, cafeteria, luncheonette, soda fountain, “fast food service,” and other establishment where cooked or otherwise prepared food is sold to members of the general public for consumption on the premises. The term does not include a cafeteria or lunchroom defined as a “workplace” by subsection (L)(3) of this section, whether or not members of the general public incidentally frequent the facility.

JB. “Smoking” means lighting, inhaling, exhaling, or burning, or carrying any lighted or heated pipe, cigar, cigarette, weed, or plant, or carrying any lighted pipe, lighted cigar, lighted cigarette, lighted weed, lighted plant, or any other lighted or heated ignited combustible tobacco or plant product intended for inhalation, substance in any manner or in any form. Smoking includes the use of an electronic smoking device that creates an aerosol or a vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking.
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KC. “Tobacco storeshop” means a place utilized primarily for the sale to members of the general public at retail of tobacco products or accessories, and in which the sale of any other products is merely incidentalany business establishment, the main purpose of which is the sale of tobacco products, including, but not limited to, cigars, pipe tobacco, and smoking accessories.

L. “Workplace” means any enclosed area which is occupied by two or more employees of a commercial enterprise, nonprofit entity or the city including but not limited to places:

1. Utilized for:
a. The manufacturing, processing, assembly, maintenance, or repair of any products, goods, equipment, tools, appliances, furnishing or other object; or b. The physical storage for purposes of wholesaling, future utilization for operational purposes, or future transfer preceding consumption or other utilization of any products, goods, merchandise, materials, supplies, equipment, tools, appliances or furnishings.

2. Utilized or operated for a purpose described by SLTCC 4.100.040 and from which members of the general public are excluded.

3. Utilized as a union hall, cafeteria, lounge, lunchroom, restroom, conference room, training room, lecture room or classroom primarily for the use or benefit of employees.

4. A private residence, including either an attached or detached garage, utilized as a workplace for a home business, including but not limited to use as a licensed day care facility, except when not frequented by members of the general public.

4.100.040 Smoking prohibitions – Public places.

A. Except as specifically provided, it is unlawful for any member of the general public or any other person, including an employee, to smoke in the public places named and described in subsections (A)(1) through (13C) of this section, inclusive, and other public places similarly situated, including but not limited to the following areas:

1. Common work areas occupied by employees performing clerical, technical, administrative or other business or work functions;

2. Merchandise display areas, checkout stations, and counters and other pay stations;

3. Hallways;

4. Restrooms;

5. Elevators, escalators, stairways;

6. Lobbies (unless a special room and/or outdoor ventilation system is installed);

7. Reception areas;

8. Waiting rooms;

9. Service lines;

10. Classrooms, meeting or conference rooms, or lecture halls; 11A. Outdoor public recreation areas owned, operated, or maintained by the city, including parks and beaches as defined in SLTCC 8.05.020010, golf courses, and campgrounds; 545
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12B. Parking lots, parking structures, and parking areas owned, operated, or maintained by the city; and
13C. Other places in which members of the general public congregate for service or otherwise frequent.

B. Stores. The prohibitions contained in subsection (A) of this section shall be applicable to:

1. The enclosed common areas of shopping malls;

2. Automobile dealerships, furniture or other showrooms for the display of merchandise offered for sale at retail;

3. Grocery, specialty, department and other stores which sell goods or merchandise at retail; and

4. Service stations, stores or shops for the repair or maintenance of appliances, shoes, or motor vehicles, barbershops, beauty shops, cleaners and laundromats, video game, and other amusement centers, and other similar establishments offering services or products to members of the general public.

C. Banks. The prohibitions of subsection (A) of this section shall be applicable to banks, including savings and loan associations, credit unions and other similar institutions which offer financial services to members of the general public.

D. Hotels/Motels. The prohibitions of subsection (A) of this section shall be applicable to hotels and motels in which guests typically rent lodging for continuous periods less than 30 days.

Smoking is permissible in rental rooms, manager’s unit/residence and in on-premises restaurants and bars as provided in this section and SLTCC 4.100.060. The availability of all nonsmoking rooms will be prominently posted in the lobby sign-in area. The rooms so designated will be posted as “Smoking Prohibited” and ashtrays removed. Customers seeking accommodations will be routinely advised of the availability of nonsmoking rooms.

E. Terminals. The prohibitions of subsection (A) of this section shall be applicable to depots and other terminals utilized by members of the general public for the purpose of being transported upon or departing from airplanes, trains, buses and taxis.

F. Buses and Public Transit. Smoking by either passengers or operators shall be prohibited within buses, and all public transit conveyances operated by or licensed by the county or city.

G. Theaters. The prohibitions of subsection (A) of this section shall be applicable to theaters, including motion picture theaters, meeting halls and auditoriums where motion pictures or live theatrical musical or dramatic productions are made to an audience consisting of members of the general public assembled for the purpose of witnessing the performance or presentation; provided, that neither this section or subsection (A) of this section shall be construed to prevent smoking by performers in connection with a stage production or by persons making a presentation concerning addiction to tobacco or other drugs.

H. Recreational Facilities. The prohibitions contained in subsection (A) of this section shall be applicable to sports pavilions, gymnasiums, exercise rooms, health spas, boxing arenas, swimming pools, roller and ice skating rinks, and other similar places where members of the 546
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general public assemble to either engage in physical exercise, participate in athletic competition or witness sports events.

Smoking is prohibited at all times within the seating areas of an enclosed arena and in any surrounding enclosed concourses where food and beverages are dispensed.

I. Recreation Halls. The prohibitions of subsection (A) of this section shall be applicable to recreation halls and other similar facilities where members of the general public bowl, play bingo or cards, dance or engage in recreational, character building or cultural activities. An owner or operator may permit persons to smoke within a portion, not exceeding 50 percent of the main activities area, of such facility and not including restrooms, lounges, and kitchens. Signs will be posted in the manner prescribed by SLTCC 4.100.080. It shall not constitute a violation of this chapter to smoke in a location where smoking has been authorized.

The provisions of this subsection shall not be construed to in any manner restrict or otherwise impair the authority of an owner or operator to prohibit smoking in such recreation hall.

J. Restaurants. Within all restaurants, the prohibitions of subsection (A) of this section shall be applicable to lobbies, waiting areas, restrooms and such dining seating areas as are allocated for nonsmoking. After adoption of the ordinance codified in this section the owner, manager, or operator shall post a notice at the restaurant entrance that a nonsmoking section is available. It shall not constitute a violation of this chapter to smoke in a location where smoking has been authorized.

The provisions of this section shall not be construed to in any manner restrict or otherwise impair the authority of an owner or operator to increase the nonsmoking seating in a restaurant or bar.

Smoking is prohibited and is unlawful in every publicly or privately owned restaurant except under the following circumstances where smoking may be permitted at the option of the establishment:

1. Any area exterior to the building in which the establishment is located.

2. The smoking of tobacco in any bar as defined in SLTCC 4.100.030.

3. The smoking of tobacco in an interior area shall be limited to not more than 50 percent of contiguous floor space of the dining area which is specifically designated and signed as a smoking area. Signs as prescribed by SLTCC 4.100.080 shall be used.

K. City Buildings. Smoking is prohibited except where other restrictions have been agreed to through the meet and confer process prior to the effective date of the ordinance codified in this chapter and such restrictions remain in effect.

L. Places of Exhibition. The prohibitions contained in subsection (A) of this section shall be applicable to libraries, museums, aquariums, galleries, convention halls and similar facilities where members of the general public assemble for the purpose of viewing the exhibition of art, artifacts, objects of historical or cultural significance, products, merchandise, equipment, appliances or services.
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M. Schools. The prohibitions contained in subsection (A) of this section shall be applicable to any school or educational institution operated by a commercial enterprise or nonprofit entity for the purpose of providing academic classroom instruction, trade, craft, computer or other technical training, or instruction in dancing, artistic, musical or other cultural skills.

The prohibitions contained in subsection (A) of this section shall be applicable to public school facilities when school district management authorizes their use by members of the general public other than students.

N. Day Care Facilities. The prohibitions contained in subsection (A) of this section shall be applicable to private residences during the time when such residences are operated as licensed day care facilities for children.

4.100.050 Smoking prohibitions – Workplaces.

Smoking is prohibited in enclosed workplaces of commercial enterprises, nonprofit entities and all city owned and managed buildings except as allowed per SLTCC 4.100.040(K) including but not limited to open office areas, shared offices, private offices except as allowed per SLTCC

4.100.060, hallways, restrooms, escalators, elevators, stairways, lobbies, reception areas, and waiting rooms, classrooms, meeting or conference rooms, and auditoriums.

On-site cafeterias, lunchrooms and lounges shall be deemed workplaces and smoking prohibited therein, whether or not such facilities are open to members of the general public. A completely separate room with a separate ventilation system may be used per employer discretion.

Each commercial enterprise, nonprofit entity and the county shall comply with these smoking prohibitions and be responsible for their implementation in the workplace, and “No Smoking” signs shall be posted in the manner prescribed by SLTCC 4.100.080.

4.100.060050 Places where smoking is permissible.

Smoking may be permitted in all locations where smoking is not prohibited by this chapter, including the following locations:

A. Bars, whether operated as a separate business entity, or physically separated facilities within a restaurant, nightclub or other business.

B. Private clubs during events attended exclusively by members of the organization and their invited guests and from which members of the general public are excluded.

C. Within conference/meeting rooms, public and private assembly rooms, banquet rooms, dining rooms or areas of restaurants, hotels and motels, while these places are occupied for private functions to which only persons specifically invited are entitled to attend and from which members of the general public are excluded.

D. In an enclosed place wherein this chapter specifically permits smoking, notwithstanding the fact that such location is a workplace.

E. In a private office or similar enclosed private workplace to which members of the general public are not routinely invited and wherein the tobacco smoke does not, through a common ventilation system or otherwise, affect other areas of the workplace. 548
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F. Manager’s unit/residence of a hotel/motel to which members of the general public are not routinely invited and wherein the tobacco smoke does not, through a common ventilation system or otherwise, affect other areas of the hotel/motel which are designated as nonsmoking areas under this chapter.

GA. Residential units, including those which are used for home occupations under the provisions of SLTCC 6.55.280 and 6.55.290; provided, however, that this exemption shall not authorize smoking in any day care or child care facility except as set forth in SLTCC 4.100.040(N).

B. Areas where smoking is permitted within certain workplace areas under Labor Code section 6404.5, as may be amended.

It shall not constitute a violation of SLTCC 4.100.040 for a person to smoke in a location where smoking has been authorized in the manner prescribed by this section.

The foregoing places are not considered workplaces subject to the provisions of SLTCC

4.100.050. Employers will, however, attempt to find a reasonable alternative accommodation where feasible for nonsmoking employees who do not wish to be assigned to work in a smoking permissible area. The foregoing exempt places do not include city owned or managed buildings.

4.100.070 Exemption procedures.

Any owner or manager of a business or other establishment subject to this chapter may apply to the director of the El Dorado County department of environmental management for an exemption or modification to its provisions. Exemptions may only be granted on:

A. A showing by the petitioner of significant financial hardship due to compliance; or B. The proposed implementation of an alternative approach or technology which would provide equivalent protection from the health hazards of sidestream smoke; or C. Proof that the only persons using the premises are smokers, no member of the public will be present, and no other workplace will be affected by smoke.

An application for exemption will be accompanied by payment of a reasonable fee established by board of supervisor resolution which will cover the cost of preparation for the hearing, and the application will include any data required by the department. The department will review the application and submit it, with recommendations, for hearing by the environmental health director. The applicant will be entitled to present evidence at the hearing, which will be scheduled within 30 days of the receipt of the application. The department will, after taking into consideration the testimony received at the hearing, issue its findings and recommendations within 10 days of the completion of the hearing. The department will complete procedural action on the application and notice the city council and interested parties within 10 days of its receipt from the director of environmental health.

The applicant or other interested parties may appeal the department’s decision to the city council within 30 days of receipt of action notification by the department. Upon appeal, the city council will set a hearing within 60 days, and make a final determination at that hearing. Any establishment holding a currently valid exemption shall not be required to pay additional administrative fees to maintain its exemption.

4.100.080 Posting requirements.

Each owner, operator, manager or other person having control of an establishment or facility within which smoking is regulated by this chapter shall conspicuously post in every place where smoking is prohibited “No Smoking” signs, or the international “No Smoking” symbol 549
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consisting of a pictorial representation of a burning cigarette enclosed in a red circle with a red bar across it, with letters not less than one inch in height.

An owner, operator, or manager of a building wherein, pursuant to these regulations, smoking is not permitted in any space in the building may limit the “No Smoking” posting to first floor entrances and exits and to the elevator lobby areas of all other floors.

Motion picture theaters shall show upon the movie or live action screens for at least five seconds prior to the showing of each feature motion picture the message that smoking is prohibited within the audience seating and other areas as specified.

Restaurants shall post at their entrances a sign stating that nonsmoking seats are available.

Likewise, recreational halls shall post signs alerting users of the availability of nonsmoking rooms. Smoking permitted areas in which smoking is permitted will be posted as such.

Motels and hotels will prominently post in the lobby a sign notifying patrons of the availability of nonsmoking accommodations. The rooms so designated will be posted as nonsmoking rooms, and ashtrays removed.

4.100.090 Retaliation prohibited.

It shall be unlawful for a commercial enterprise, nonprofit entity or city to retaliate against any members of the general public or an employee or applicant for employment of the enterprise, entity or city because such members of the general public, employee or applicant seeks enforcement of the provisions of this chapter.

4.100.100060 Violation and penalties – Smoking or posting.

Any person who violates the prohibitions contained in SLTCC 4.100.040 and any person who violates SLTCC 4.100.080 by failing to post the signs or take the other actions required by this section shall be guilty of an infraction, punishable in the manner hereinafter prescribed:

A. A fine not exceeding $100.00 for a first violation.

B. A fine not exceeding $200.00 for a second violation of this chapter within one year.

C. A fine not exceeding $500.00 for each additional violation of this chapter within one year.

4.100.110 Retaliation remedies.

Violation of any of the provisions of SLTCC 4.100.090 or 4.100.100 shall be remedial through civil action filed in a court of competent jurisdiction for injunctive or other appropriate relief.

4.100.120 Enforcement.

It shall be the responsibility of the El Dorado County director of the environmental management department to enforce, on behalf of the city, the provisions of this chapter. The director shall be authorized to prosecute, in the name of the city, pursuant to the provisions of Section 25132 of the Government Code, civil actions for recovery of fines for violations of this chapter made infractions by SLTCC 4.100.110 or violations of SLTCC 4.100.040 and 4.100.050. In the performance of the enforcement responsibilities assigned by this chapter, the director of the county environmental management department shall:

A. Affirmatively seek the support and cooperation of other local public agencies, such as fire protection districts, to provide information, assistance and advice in the enforcement of the provisions of this chapter;
B. Establish a telephone number through which all complaints by citizens relating to violations of this chapter may be directed or referred;
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C. Reduce such complaints to writing, and analyze the frequency and volume thereof in relation to alleged violations of this chapter by or at particular establishments or facilities; D. Conduct on-site inspection of any establishment or facility with respect to which the nature and volume of complaints suggest long-standing and pronounced violation of any of the provisions of this chapter;
E. Provide to the owner, operator or manager of any such establishment or facility a copy of the provisions of this chapter and such advisory assistance to rectify future violations as may be necessary to achieve compliance with the provisions of this chapter; F. Follow up such investigations and advice with a written directive explaining in detail the steps required in order to achieve future compliance with the provisions of this chapter; and G. If the violations do not cease following the expiration of a reasonable period of time, commence civil actions for the recovery of infraction fines pursuant to the provisions of SLTCC

4.100.100 or request commencement of a civil proceeding by the county counsel and/or city attorney, pursuant to the provisions of SLTCC 4.100.110, as may be appropriate.

The provisions of SLTCC 4.100.090 shall not be remedial by either the director of environmental management, or any other county official or city official. Any member of the general public, an employee or applicant for employment may, pursuant to the provisions of SLTCC 4.100.110, commence in his or her name a civil action for injunctive relief, monetary damages or other appropriate relief against a person who violates SLTCC 4.100.090 pursuant to the provisions of SLTCC 4.100.110. A member of the general public or employee shall also be authorized to individually commence a civil action pursuant to the provisions of SLTCC 4.100.110 for injunctive relief, monetary damages or other appropriate relief for the purpose of remedying any other violation of the provisions of this chapter.

4.100.130 Provision to repeal ordinance.

In the event the 1966 contract between the city of South Lake Tahoe and county of El Dorado requiring the health officer to enforce the ordinance codified in this chapter is terminated, the ordinance shall be automatically repealed without further city council action. 551
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Chapter 4.180

CANNABIS PUBLIC SAFETY LICENSE ORDINANCE
Section:

4.180.010 Purpose and intent.

4.180.020 Definitions.

4.180.030 Cannabis businesses – General provisions.

4.180.040 Cannabis public safety license – General provisions.

4.180.050 Public safety license and public safety license renewal – Approval and denial.

4.180.060 Expiration and renewal of cannabis public safety licenses.

4.180.070 Suspension and revocation by chief of police.

4.180.080 No vested rights.

4.180.010 Purpose and intent.

4.180.020 Definitions.

As used in this chapter:
“Applicant” means any person who is required to file an application for issuance of a cannabis public safety license to operate a cannabis business under this chapter, including without limitation an individual owner, operator, or agent of a cannabis business.
“Application for renewal” shall mean an application for a renewed cannabis public safety license, which application may be submitted by a licensee.
“Cannabis” shall have the meaning set forth in Cal. Bus. & Prof. Code § 26001(f) and as subsequently amended. “Cannabis business” shall include:
a. Any business, facility, use, establishment, property, or location, whether fixed or mobile, where a commercial cannabis activity takes place.
b. Any building, facility, use, establishment, property, or location where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a state license under Cal. Bus. & Prof. Code § 26000 and following, including but not limited to cannabis cultivation, cannabis distribution, cannabis manufacturing, cannabis testing and cannabis retail sales, and the operation of a cannabis microbusiness. “Cannabis products” shall have the meaning set forth in Cal. Bus. & Prof. Code § 26001(ik) and as subsequently amended.
“Cannabis use permit” shall mean a use permit issued for the operation of a cannabis business pursuant to Article X of Chapter 6.55 SLTCC.
“Commercial cannabis activity” shall include the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or acting as a cannabis event organizer for temporary cannabis events. 552
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. “Cultivation” shall mean any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Curbside delivery” shall mean a sale of cannabis or cannabis products from a licensed retail storefront or licensed microbusiness with retailer component that is delivered to a customer in their vehicle parked immediately outside the retail or microbusiness premises.
“Licensee” shall mean the cannabis business owner identified to the city as such, and to whom a city cannabis public safety license has been issued.
“Operator” shall mean any person responsible for management of the cannabis business; any person listed as an officer, director, manager, or member in statement of information filed with the Secretary of State for a cannabis business; any person listed in a governing document for a cannabis business, such as bylaws, articles of incorporation, or operating agreement; any person owning an interest in the cannabis business, unless the interest is solely a security, lien, or encumbrance; and any person that supervises an employee of the cannabis business. “Owner” shall have that meaning set forth in Cal. Bus. & Prof. Code § 26001(alap) and as it may be amended. “Permittee” shall mean any person issued a cannabis use permit under Article X of Chapter 6.55 SLTCC. “Police chief” shall mean the chief of the city of South Lake Tahoe police department. “Property” shall mean the designated structure or structures and land specified in the cannabis use permit application that is owned, leased or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted.
“State cannabis laws” means and includes Cal. Health & Safety Code §§ 11362.1 through 11362.45; Cal. Health & Safety Code § 11362.5 (Compassionate Use Act of 1996); Cal. Health & Safety Code §§ 11362.7 through 11362.83 (Medical Marijuana Program); Cal. Bus. & Prof. Code § 26000 et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)); all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; Cal. Labor Code § 147.5; Cal. Rev. & Tax. Code §§ 31020 and 34010 through 34021.5; Cal. Fish and Game Code § 12029; Cal. Water Code § 13276; all state regulations adopted pursuant to MAUCRSAby the Department of Cannabis Control; any license issued pursuant to MAUCRSAby the Department of Cannabis Control; and all other applicable laws of the state of California regulating cannabis or cannabis products. “State license” shall mean a license from the state Department of Cannabis Control issued pursuant to Division 10 of the Cal. Bus. & Prof. Code.

4.180.030 Cannabis businesses – General provisions.

B. Imposition of Public Safety License Fees.

2. A fee for renewal of a public safety license will be due annually. 553
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C. Conditions of Operation.

1. Security Plan. A licensee shall provide adequate security on the premises of the cannabis business. The following minimum security standards shall be maintained at all times:
a. Surveillance System.
i. Each cannabis business shall be monitored at all times by a digital closed-circuit television surveillance system. Surveillance systems shall meet any applicable state law requirements, including those set forth in Title 4 of the California Code of Regulations Title 16, § 15044, and any subsequently enacted regulation. The camera and video recording surveillance system must be capable of providing surveillance of both interior and exterior areas of the cannabis business and must be of adequate quality, color rendition and resolution to allow the ready identification of an individual on or adjacent to the property. The recordings shall be maintained at the cannabis business or other location accessible to the police department for a period of not less than ninety (90) days. ii. A sign shall be posted inside and at the entrances to the establishment indicating that the premises are under camera/video surveillance.
iii. The surveillance system recordings shall be maintained in such manner as to allow remote access by the police department. The police chief may request that the permittee provide secured electronic access to video feeds of the surveillance system in real time, to be provided via an online portal or through other software deemed acceptable to the police chief. b. Loitering Adjacent to a Cannabis Business. Licensees shall take reasonable measures to reduce loitering by cannabis business members, patrons, guests and invitees in public areas, sidewalks, alleys and areas surrounding the property and adjacent premises during the business hours of the cannabis business. c. Identification Verification System. Each cannabis business shall require identification upon entry to the cannabis business and shall implement electronic verification of identification provided to ensure that applicable age restrictions in SLTCC 6.55.800(A)(5) are complied with. d. Curbside Delivery. Curbside delivery of cannabis or cannabis products must occur under video surveillance that meets the requirements of SLTCC 4.180.030(C)(1)(a)(i) for recording point-of-sale areas.

Retail employees engaging in curbside delivery must verify each customer’s age and identity.

2. Nuisances Prohibited. A licensee shall take reasonable steps to correct objectionable conditions that constitute a nuisance on any public sidewalk or public space abutting the cannabis business premises. a. For purposes of this section, “objectionable conditions that constitute a nuisance” means public consumption of cannabis or cannabis products, disturbance of the peace, drug trafficking, disposing of litter or trash, or excessive loud noise.
b. For purposes of this section, “reasonable steps” means all of the following:
i. Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee, or his or her agents or employees, shall not be construed as evidence of objectionable conditions that constitute a nuisance.
ii. Requesting those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his or her agents or employees, feels that their personal safety would be threatened in making that request.
iii. Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering.
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D. Inspection of Cannabis Business.

2. No licensee or any other person shall refuse, impede, obstruct, or interfere with an inspection pursuant to this chapter.

4.180.040 Cannabis public safety license – General provisions.

A. Application Procedures.

1. Public safety license application must be approved prior to the applicant initiating the cannabis use permit application process as set forth more fully in Article X of Chapter 6.55 SLTCC.

2. Public safety licenses shall not be issued until after the city council has approved a development agreement for the proposed cannabis business.

32. The city council may set further application procedures and requirements by separate resolution.

1. Eligibility for Filing. Public safety license applications and applications for renewal or amendment shall be filed by the owner and/or operator of the cannabis business.

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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. b. If the cannabis business is incorporated, a certified copy of the articles of organization, certificate(s) of amendment, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business.
c. If the cannabis business is a limited liability company, a certified copy of the articles of organization, certificate(s) of amendment, operating agreement, bylaws, and statement(s) of information filed with the California Secretary of State for the cannabis business. d. If the cannabis business is an unincorporated association, a copy of the articles of association and any filings made with the California Secretary of State.
e. The name, address, electronic mail address and mobile phone number of the applicant’s or licensee’s current designated agent for service of process.
f. Emergency Contact. The name, electronic mail address, and mobile phone number of an owner, operator, or manager to act as an on-site community relations staff person to whom the city may provide notice of any operating problems associated with the cannabis business. g. A statement dated and signed by each applicant, under penalty of perjury, that the applicant has personal knowledge of the information contained in the application, that the information contained therein is true and correct.

4.180.050 Public safety license and public safety licenseissuance, renewal, and amendment – Approval and denial.

1. The applicant and each owner, operator and employee of the cannabis business have authorized and completed fingerprinting.

2. The applicant and each owner, operator and employee of the cannabis business have authorized the use of their fingerprinting results to run a state and nationwide criminal background check.

The following offenses are substantially related to the qualifications, functions, or duties of a cannabis business:
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. a. A violent felony conviction, as specified in Cal. Penal Code § 667.5(c). b. A serious felony conviction, as specified in Cal. Penal Code § 1192.7(c). c. A felony conviction involving fraud, deceit, or embezzlement. d. 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. e. A felony conviction for drug trafficking with enhancements pursuant to Cal. Health & Safety Code § 11370.4 or 11379.8.
f. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license.

6. Security Plan. The applicant or licensee has provided a security plan providing the minimum standards set forth in SLTCC 4.180.030(C)(1).

7. Minimum Age. The applicant or licensee, and each owner, operator and employee of the cannabis business, is at least 21 years of age.

B. Criteria for Denial. Cannabis public safety licenses shall not be issued, or renewed, or amended where the chief of police confirms that one or more of the criteria set forth in subsection (A) of this section have not been met. If the chief of police denies the cannabis public safety license application or application for renewal or amendment, he or she shall specify in writing the reasons for the denial of the application or application for renewal, and notify the applicant that the decision shall become final unless the applicant seeks an appeal pursuant to subsection (C) of this section.

4.180.060 Expiration and renewal of cannabis public safety licenses.

A. Cannabis public safety licenses shall expire one year after their issuance.

D. An application for renewal shall be subject to all filing requirements set forth in SLTCC 4.180.040(B) and (C). 557
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E. The chief of police shall issue or deny an application for renewal in accordance with the provisions of SLTCC

4.180.050.

4.180.070 Suspension and revocation by chief of police.

A. A cannabis public safety license issued under the terms of this chapter shall be suspended or revoked by the chief of police if he or she concludes any of the following:

1. The cannabis business or licensee has violated any of the requirements of this chapter.

2. The cannabis business is being operated in a manner which violates the security plan required by this chapter.

3. The cannabis business is being operated in a manner which constitutes a nuisance.

4. The cannabis business has failed to comply with the conditions of operation set forth in SLTCC

4.180.030(C).

5. The cannabis business has ceased to operate for 30 days or more.

9. The cannabis business is being operated in a manner which conflicts with or violates state cannabis laws.

10. A licensee’s cannabis use permit issued pursuant to Chapter 6.55 SLTCC has been terminated or revoked.

11. A licensee has attempted to transfer or has transferred a cannabis public safety license to another person or entity.

12. A licensee’s state license has been suspended, terminated, or revoked.

4.180.080 No vested rights.

No person(s) shall have any vested rights to a cannabis public safety license, right or interest under this chapter, regardless of whether such person(s) cultivated, sold, distributed or otherwise engaged in acts related to the use of cannabis prior to adoption of the ordinance codified in this chapter. 558
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6.55.700 Purpose and intent.

6.55.710 Definitions.

For the purposes of this article, the following words and phrases shall have the following meanings:
“Applicant” means any person who is required to file an application for a cannabis use permit and development agreement to operate a cannabis business under this article, including without limitation an individual owner, operator, or agent of a cannabis business.
“Cannabis” shall have the meaning set forth in Section 26001(ef) of the Business and Professions Code and as subsequently amended.
“Cannabis business” shall include:
a. Any business, facility, use, establishment, property, or location, whether fixed or mobile, where a commercial cannabis activity takes place.
b. Any building, facility, use, establishment, property, or location where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a state license under Business and Professions Code Section 26000 and following, including but not limited to cannabis cultivation, cannabis distribution, cannabis manufacture, cannabis testing and cannabis retail sales, and the operation of a cannabis microbusiness. “Cannabis product” shall have the same meaning as in Section 11018.1 of the Health and Safety Code. “Canopy” means all areas occupied by any portion of a cannabis plant, encompassing all vertical planes (i.e., stacking of plants), whether contiguous or noncontiguous on any one site. The canopy shall be measured by taking the longest length and widest width of existing plants (including all gaps, walkways, and open areas between plants) and multiplying the longest length by the longest width to get the area of the cannabis canopy. Each level of a stacked cultivation will be calculated as a separate canopy. “Commercial cannabis activity” shall include the cultivation, possession, manufacturing, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or acting as a cannabis event organizer for temporary cannabis events. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” means any cannabis business engaged in cultivation activities, but specifically excluding cultivation in a private residence or accessory dwelling unit authorized pursuant to SLTCC 6.55.720. “Day care center” shall have that meaning as set forth in Section 1596.76 of the Health and Safety Code. “Delivery” means the commercial transfer of cannabis or cannabis products to a customer or patient. “Delivery” also includes the use by a retailer of any technology platform. “Delivery operation” means a cannabis business that engages in or otherwise provides deliveries. “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees. 559
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. “Distributor” means any cannabis business engaged in distribution. “Drug paraphernalia” shall have the meaning set forth in California Health and Safety Code Section 11014.5, and as subsequently amended.
“Edible cannabis product” means cannabis that is intended to be used, in whole or in part, for human consumption. “Extraction” means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.
“Identification card” shall have the meaning set forth in California Health and Safety Code Section 11362.712(g), and as may be amended from time to time.
“Manufacture” means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a cannabis product.
“Manufacturer” means any cannabis business that conducts any activities involving the manufacture of a cannabis product.
“Medical marijuana dispensary” shall mean a cooperative or collective of four or more members associating at a particular location or real property to cooperatively distribute cannabis to members for medical purposes and that operates on a not-for-profit basis.
“Medicinal cannabis” or “medicinal cannabis product” shall have the meaning set forth in California Business and Professions Code Section 26001(aial)(1), which includes cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at California Health and Safety Code Section 11362.5, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Microbusiness” means a cannabis business that engages in commercial cannabis activities of at least three of the following types of cannabis businesses: retailer, distributor, manufacturer, cultivator. “Operator” shall mean any person responsible for management of the cannabis business; any person listed as an officer, director, manager, or member in the Statement of Information filed with the Secretary of State for a cannabis business; any person listed in a governing document for a cannabis business, such as bylaws, articles of incorporation, or operating agreement; any person owning an interest in the cannabis business, unless the interest is solely a security, lien, or encumbrance; and any person that supervises an employee of the cannabis business. “Owner” shall have that meaning set forth in Section 26001(amap) of the Business and Professions Code and as it may be amended.
“Package” or “packaging” means any container or wrapper that may be used for enclosing or containing any cannabis or cannabis products. The term “package” does not include any shipping container or outer wrapping used solely for the transportation of cannabis or cannabis products in bulk quantity to another licensee or licensed premises.
“Park” shall mean any land, with public access, intended to provide recreation. For the purposes of this article, “park” also includes public beaches.
“Permittee” shall mean any person issued a cannabis use permit under this article. “Physician” shall mean a licensed medical doctor, including a doctor of osteopathic medicine as defined in the California Business and Professions Code.
“Property” shall mean the designated structure or structures and land specified in the cannabis use permit application that is owned, leased or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted.
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. “Retailer” means any cannabis business that engages in the sale of cannabis or cannabis products to customers, including medical and adult-use cannabis or cannabis products. “School” means any public or private school providing instruction in kindergarten or any of grades one to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. “State cannabis laws” means and includes California Health and Safety Code Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program); California Business and Professions Code Section 26000 et seq. (Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)); all state laws enacted or amended pursuant to SB-94, Chapter 27, Statutes of 2017; the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted by the Department of Cannabis Control; any license issued by the Department of Cannabis Control; and all other applicable laws of the state of California regulating cannabis or cannabis products.
“Testing laboratory” means a laboratory, facility, or entity that offers or performs tests of cannabis or cannabis products and is licensed by the Department of Cannabis Control. “Youth centers” shall mean any youth center, as defined in Section 11353.1(e)(2) of the Health and Safety Code, any playground, as defined in Section 11353.1(e)(1) of the Health and Safety Code, and any child day care facility, as that term is defined in Section 1596.750 of the Health and Safety Code.

6.55.720 Residential cultivation of cannabis.

B. Amortization of Existing Residential Cultivation Permits. All residential cultivation permits previously issued by the city are hereby deemed amortized and are null and void.

1. Odors which are disturbing to people of normal sensitivity residing or present on adjacent or nearby properties or areas open to the public;

2. More than three substantiated responses to valid confirmed complaints in a one-year time period to the residence from law enforcement officers;

3. More than three disruptions in a one-year time period to the free passage of persons or vehicles in the neighborhood;

4. Excessive noise which is disturbing to people of normal sensitivity on adjacent or nearby properties or areas open to the public in accordance with SLTCC 4.70.160;
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F. Cultivation of cannabis in residences shall be in conformance with the following requirements:

1. Cultivation shall only occur in fully enclosed and secure structures. All outdoor cultivation of cannabis is strictly prohibited.

2. Cultivation shall only occur in residences which are in full compliance with the city code, including the building code and fire code.

3. No cooking, baking, or alteration as to form and substance of cannabis for commercial purposes, and/or sale, is permitted in a residence which cultivates cannabis.

4. From a public right-of-way, there shall be no exterior evidence of cannabis cultivation occurring at the residence.

6.55.730 Cannabis businesses – Use permit , development agreement, and public safety license required.

6.55.740 Cannabis businesses – General provisions.

A. Cannabis Businesses Allowed.

2. No more than one cannabis business may exist in the same suite or unit on a lot or parcel of property. 562
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The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023.

3. An owner and/or operator of a cannabis business may not own or operate more than one retail cannabis business, including a microbusiness with a retailer component, within the city.

4. No more than four retailers are permitted in the city, including microbusinesses with a retailer component.

6. No more than two cultivators are permitted in the city.

7. No more than four manufacturers are permitted in the city.

B. Limitations on Location.

Table 6.55.740
City Cannabis Business
Type
TRPA Permissible Use
Categories
a. Retailers (including
delivery operations)
“food and beverage retail sales”
and “general merchandise stores”
b. Microbusinesses
i. Retailer See a.
ii. Distributor See f.
iii. Manufacturer See e.
iv. Cultivator See d.
c. Testing labs “industrial services”
d. Cultivators “industrial services”
e. Manufacturers “food and kindred products” and
“small scale manufacturing”*
f. Distributors “wholesale and distribution”
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South Lake Tahoe City Code Page 6/14
The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023. * The applicable TRPA permissible use category for a manufacturer will depend on the type of cannabis product being manufactured.

C. Transfer of Cannabis Use Permits.

4. Transfer without Permission. Any attempt to transfer a cannabis use permit either directly or indirectly in violation of this chapter is declared void, and the permit shall be deemed revoked.

6.55.750 Cannabis use permit application requirements.

C. Use Permits for Retailers, Cultivators, Manufacturers, Distributors, and Microbusinesses. Because only a limited number of retailers, cultivators, manufacturers, distributors, and microbusinesses are permitted, an application period for these businesses shall be established that allows the city to select the best applicants for negotiation of a development agreement. Such applicants shall to be placed on a qualified applicant list. The process and selection criteria for selection of the best applicants to be placed on the qualified applicant list shall be established by resolution of the city council.
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South Lake Tahoe City Code Page 7/14
The South Lake Tahoe City Code is current through Ordinance 1175, passed September 8, 2023.