HomeMy WebLinkAboutORD 1478ORDINANCE NO. 1478
MEASURE CB
CANNABIS RETAIL SALE, REGULATION, AND TAXATION
Measure CB was placed on the ballot on the November 8, 2022 General Municipal Election for
the City of Baldwin Park to be voted on by a majority vote of the Baldwin Park Voters.
Measure CB had the following votes.
Yes 51.33% 5,268 Votes
No 48.67% 4,996 Votes
The City assigned Ordinance No. 1478 to the attached Cannabis Initiative submitted by the
Propontent that was received in the office of the City Clerk on January 24, 2022 (date stamped).
OFFICE OF TM CITY CLERK
JAN ,2 4 2022
THE PEOPLE OF THE CITY OF BALDWIN PARK DO ORDAIN AS FOLLOWS: t�
SECTION 1. This measure shall be known and may be cited as "The Bald �wiG P'a
Marijuana Retail Sales Regulation and Taxation Measure" (the "Measure").
SECTION 2. Purpose and Intent, The purpose and intent of this Measure is to (A)
accommodate the needs of medically -ill persons in need of cannabis for medicinal purposes, as
advised and recommended by their health care provider(s), and adults over the age of twenty-
one (21), and to implement State of California ("State") law, which includes, but is not limited to
the provisions of the Medicinal & Adult -Use Cannabis Regulation & Safety Act ("MAUCRSA"), as
may be amended and augmented under State law, while imposing regulations on the conduct of
business and use of land to protect the City of Baldwin Park's (the "City") neighborhoods,
residents, and businesses from negative impacts and (B) impose a general tax applicable to
cannabis retailers for the purpose of funding any and all governmental purposes, including but
not limited to 911 emergency response, police and fire protection services, pothole repair,
afterschool programs, senior services, homeless reduction, graffiti removal, and other City
general fund services, It is a further purpose and intent of this Measure to regulate the retail sale
of cannabis and cannabis products in a manner which is responsible, which protects the health,
safety, and welfare of the residents of the City, and which enforces rules and regulations
consistent with.State law, In part to meet these objectives, a retail cannabis business permit shall
be required to own or to operate a cannabis retailer within the City and pay a Cannabis Retailer
Tax of up to five percent (5%) on the gross receipts of retail sales of cannabis and cannabis
products. Further, this Measure's requirement for a cannabis retailer to possess a retail cannabis
business permit is in addition to any other permits, licenses, and approvals which may be required
to conduct business in the City, and is in addition to any permits, licenses, and approvals required
under State or County of Los Angeles ("County") law.
SECTION 3. Legal Authority. Pursuant to Section 7 of Article XI of the California
Constitution, and the provisions of the MAUCRSA, as may be amended and augmented under
State law and any subsequent State legislation regarding the same, the City is authorized to adopt
ordinances that establish standards, requirements, and regulations for local licenses and permits
and taxes for cannabis retailers. Except as otherwise provided in this Measure, any standards,
requirements, and regulations regarding health and safety, security, and worker protections
established by the State, or any of its departments or divisions, shall be the minimum standards
applicable to the retail sale of cannabis and cannabis products in the City.
SECTION 4. Findings. The People of the City hereby find and declare the following:
A. The City does not currently have a structure in place to regulate and tax cannabis
retailers.
B. The People of the City have a great need for reasonable access to cannabis and
cannabis products for retail purchase to accommodate the needs of medically -ill persons in need
of cannabis for medicinal purposes, as advised and recommended by their health care
provider(s), and adults over the age of twenty-one (21).
C. The People of the City hereby intend to regulate the retail sale of cannabis and
cannabis products in a manner which is responsible, which protects the health, safety, and welfare
of the residents of the City, and which enforces rules and regulations consistent with State law.
D. The People of the City find that the retail sale of cannabis and cannabis products
poses different health, safety, and welfare concerns than the retail sale of tobacco and tobacco
products, and, therefore, the City's regulations regarding the retail sale of tobacco and tobacco
products are not appropriate for regulating the retail sale of cannabis and cannabis products.
E. The City has a great need for additional funds to provide the level of general fund
services such as 911 emergency response, police and fire protection services, pothole repair,
afterschool programs, senior services, homeless reduction, and graffiti removal that residents
need and want.
F. The People of the City hereby intend to impose a general tax applicable to
cannabis retailers for purposes that may include the funding of 911 emergency response, police
and fire protection services, pothole repair, afterschool programs, senior services, homeless
reduction, graffiti removal, and other City general fund services.
SECTION 5. Title XI (Business Regulations) of the City Municipal Code is hereby
amended by adding Chapter 127.5 (Cannabis Retailers) to read as follows:
CHAPTER 127.5. Cannabis Retailers
127.6.01: Cannabis Retailers Prohibited Unless Specifically Authorized
A. Except as specifically authorized by this Chapter 127.5, to the fullest extent permitted by
State law, the City expressly prohibits any and all commercial cannabis retailers within the
City. In particular and if allowable under State law, the City hereby expressly prohibits the
delivery of cannabis and cannabis products within the City except by cannabis retailers
based within the City and permitted under this Chapter 127.5. If the City is required by
State law to permit the delivery of cannabis and cannabis products by commercial
cannabis businesses or cannabis retailers not based within the City, such commercial
cannabis businesses and cannabis retailers not based within the City shall be required to
comply with the requirements under this Chapter 127.5, including the City retail cannabis
business permit application and approval processes under Section 127.5.07.
B. Nothing in this Chapter 127.5 shall be construed or interpreted to permit the commercial
possession, furnishing, manufacture, cultivation, distribution, processing, storing,
laboratory testing, packaging, labeling, transportation, delivery, or sale of industrial hemp.
C. To the extent expressly authorized in this Chapter 127.5 and Title XV of the City Municipal
Code, cannabis retailers are permitted in the City, subject to the satisfaction of all
requirements set forth in this Chapter 127.5, Title XV of the City Municipal Code,
MAUCRSA, and all other applicable State and local laws, rules, and regulations.
127.6.02: Compliance with Laws
It is the responsibility of the owners, managers, officers, employees, and agents of any cannabis
retailer to ensure that it is operating in a manner compliant with all applicable State and local laws
and any regulations promulgated thereunder. Nothing in this Chapter 127.5 shall be construed
as in conflict with State law.
127.6.03: Definitions
When used in this Chapter 127.5, the following words shall have the meanings ascribed to them
as set forth herein. Words and phrases not specifically defined below shall have the meanings
ascribed to them elsewhere in this Code, or shall otherwise be defined by common usage. For
definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb
conjugations shall be included. Any reference to State statutes includes any regulations
promulgated thereunder and is deemed to include any successor or amended version of the
referenced statute or regulatory provision.
"Applicant" means the person applying for the retail cannabis business permit under this Chapter
127.5 (not the owners or the managers of the applicant).
"Cannabis" has the same meaning as defined in Chapter 127 of the City Municipal Code.
"Cannabis business" means a person engaged In commercial cannabis activity.
"Cannabis concentrate" means cannabis that has undergone a process to concentrate one or
more active cannabinoids, thereby increasing the product's potency. Resin from granular
trichomes from a cannabis plant is a concentrate for purposes of this Chapter 6. A cannabis
concentrate is not considered food, as defined by Section 109935 of the State Health & Safety
Code, or drug, as defined by Section 109925 of the State Health & Safety Code.
"Cannabis product" means cannabis that has undergone a process whereby the plant material
has been transformed into a concentrate, Including, but not limited to, concentrated cannabis, or
an edible or topical product containing cannabis or concentrated cannabis and other ingredients.
"CalEnviroScreen" means the California Communities Environmental Health Screening Tool or
any successor screening methodology used by the Office of Environmental Health Hazard
Assessment.
"Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section
11362.7 of the State Health & Safety Code.
"Chief Executive Officer" means the Chief Executive Officer of the City of Baldwin Park or his or
her designee(s).
"Chief of Police" means the Police Chief of the City of Baldwin Park Police Department or his or
her designee(s).
"City" means the City of Baldwin Park, State of California.
"City Attorney" means the City Attorney of the City of Baldwin Park or his or her designee(s).
"City Council" means the City Council of the City of Baldwin Park.
"Commercial cannabis activity" has the same meaning as defined in Chapter 127 of the City
Municipal Code.
"Commercial cannabis production activity" has the same meaning as defined In Chapter 127 of
the City Municipal Code.
"County" means the County of Los Angeles, State of California.
"Customer" means a natural person twenty-one (21) years of age or over or a natural person
eighteen (18) years of age that is a qualified patient or primary caregiver.
"Day-care" has the same meaning as defined in Chapter 127 of the City Municipal Code.
"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.
"Delivery" also includes the use by a retailer of any technology platform owned and controlled by
the retailer.
"Dispensary" or "retailer" or "cannabis retailer" means a location where cannabis, cannabis
products, or devices for the use of cannabis or cannabis products are offered, either individually
or in any combination, for retail sale or cannabis business that dispenses cannabis, cannabis
products, or devices for the use of cannabis or cannabis products, including a cannabis business
that delivers cannabis and cannabis products.
"Dispensing" or "retail saie(s)" means any commercial cannabis activity involving the retail sale of
cannabis or cannabis products from a retailer.
"Edible cannabis product" means a cannabis product that is intended to be used, in whole or in
part, for human consumption, including, but not limited to, chewing gum, but excluding products
set forth in Division 15 (commencing with Section 32501) of the State Food & Agriculture Code.
An edible cannabis product is not considered food, as defined by Section 109935 of the State
Health & Safety Code, or drug, as defined by Section 109925 of the State Health & Safety Code.
An edible cannabis product shall not be deemed to be adulterated pursuant to Section 26131 of
the State Business & Professions Code solely because it contains cannabis.
"Employee" means each natural person employed by a cannabis retailer who is a part-time, full-
time, temporary, or permanent employee.
"Labor peace agreement" means an agreement between a cannabis retailer and any bona fide
labor organization that, at a minimum, protects the City's proprietary interests by prohibiting labor
organizations and members from engaging in picketing, work stoppages, boycotts, and any other
economic interference with a cannabis retailer. This agreement means that the cannabis retailer
has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and
attempt to organize and represent, the cannabis retailer's employees. The agreement shall
provide a bona fide labor organization access at reasonable times to areas in which the cannabis
retailer's employees work, for the purpose of meeting with employees to discuss their right to
representation, employment rights under State law, and terms and conditions of employment.
"Licensing authority" means a State agency responsible for the issuance, renewal, or
reinstatement of State license, or a State agency authorized to take disciplinary action against a
State licensee.
"Manager" means any individual who will be participating in the direction, control, or management
of an applicant or a permittee, including but not limited to, any (1) manager or managing member
or other officer of a limited liability company or (ii) president, chief executive officer, secretary,
treasurer, chief financial officer, or other officer of a for profit corporation.
"Marijuana" means "cannabis" as that term Is defined in this Chapter 127.5.
"MAUCRSA" means Division 10 (commencing with Section 26000) of the State Business and
Professions Code and any regulations promulgated thereunder.
"Measure" means The Baldwin Park Marijuana Retail Sales Regulation and Taxation Measure,
"Owner" means any of the following:
a. A person owning in the aggregate equity interests representing twenty (20) percent or
more of the voting power of all outstanding equity in the applicant or a permittee;
b. The president, chief executive officer, secretary, treasurer, or chief financial officer of a
nonprofit applicant or permittee; or
C. A member of the board of directors of a nonprofit applicant or permittee.
Notwithstanding the above, every applicant and permittee must have at least one
individual person designated as an "owner" for the purpose of compliance with this
Chapter 127.5, including the review and evaluation of any retail cannabis business permit
application.
"Panic button" means an emergency electronic contact device which allows an employee in the
event of an ongoing crime, threat, or other emergency to alert a security guard responsible for
providing immediate on -scene assistance.
"Patient" or "qualified patient" means a natural person who is entitled to the protections of Section
11362.5 of the State Health & Safety Code and includes a person issued an identification card
issued pursuant to Article 2.5 of Chapter 127.5 of Division 10 of the State Health & Safety Code.
"Permittee" means the holder of a valid, City -issued retail cannabis business permit.
"Person" means an individual or natural person, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other
group or combination acting as a unit and includes the plural as well as the singular number.
"Person with an identification card" shall have the meaning given to that term in Section 11362.7
of the State Health & Safety Code.
"Premises" means the designated structure or structures and land specified in the retail cannabis
business permit application that is owned, leased, or otherwise held under the control of the
applicant or permittee where cannabis retail sales will be or is conducted. The premises shall be
a contiguous area and shall only be occupied by one permittee.
"Retail cannabis business permit" means a regulatory permit / license issued by the City pursuant
to this Chapter 127.5 to a cannabis retailer and is required before any cannabis retail sales may
be conducted in the City and is made expressly contingent upon the cannabis retailer's ongoing
compliance with all of the requirements of this Chapter 127.5 and any regulations adopted by the
City governing cannabis retail sales.
"Sale" means any sale, exchange, or barter or other transaction for any consideration.
"School" means as evidenced by the State Department of Education school directory, a public
school instructing children in grades kindergarten through 12, as authorized by the State
Department of Education or a private school instructing children in grades kindergarten through
12 that has filed a verification of private school affidavit with the State Department of Education
pursuant to Section 33190 of the State Education Code, excluding any private school in which
education is primarily conducted in a private home. Pursuant to the authority delegated by the
State to the City under Section 26054(b) of the State Business & Professions Code, this definition
of "school' under this Chapter 127.5 shall override the definition of "school' used in MAUCRSA
or Section 11362.768 of the Health & Safety Code.
"Social equity applicant" means an individual or natural person that meets criteria, or the
aggregate ownership interest of fifty-one (51) percent in an entity by an individual or natural
person that meets criteria, established by the City Council, pursuant to the procedures set forth
in the State Government Code and the City Municipal Code and without prior approval of the
electorate, by the adoption or amendment of one or more ordinances, provided that such
ordinance or amendment is adopted by a two-thirds vote of the entire membership of the City
Council and meets the following minimum standards:
A. An individual or natural person from a low-income household and has either (1) a past
conviction for a cannabis crime or (2) an immediate family member with a past conviction
for a cannabis crime is a "social equity applicant";
B, An individual or natural person from a low-income household in a zip code identified as at
least sixty percent (60%) according to CalEnviroScreen for a five (5) consecutive year
period and has either (1) a past conviction for a cannabis crime or (2) an immediate family
member with a past conviction for a cannabis crime is a "social equity applicant'; and
C. An individual or natural person from a low-income household and has either (1) five (5)
years cumulative residency in a zip code identified as at least seventy percent (70%)
according to the CalEnviroScreen or (2) ten (10) years cumulative residency in a zip code
identified by CalEnviroScreen is a "social equity applicant'.
"State" means the State of California.
"State license" means a permit or license issued by the State, or one of its departments or
divisions, under MAUCRSA and any subsequent State legislation regarding the same to engage
in cannabis retail sales.
"Topical cannabis" means a cannabis product intended for external application and/or absorption
through the skin. A topical cannabis product is not considered a drug as defined by Section
109925 of the State Health & Safety Code,
"Youth center" has the same meaning as defined in Chapter 127 of the City Municipal Code.
127.6.04: Retail Cannabis Business Permit Required
No person shall operate a cannabis retailer or engage in cannabis retail sales within the
City unless such business or activity is currently in compliance with all applicable State
and local laws, rules, and regulations and the cannabis retailer has:
A valid City business license to conduct such business or activity;
2. A valid retail cannabis business permit issued by the City pursuant to this Chapter
127.5 to conduct such business or activity;
3. A valid State license authorizing such business or activity in the City; and
4. A valid certificate of occupancy issued by the City's Building & Safety Division to
conduct the cannabis retail sales at the premises identified in the retail cannabis
business permit.
127.6.06: Location and Design Requirements for Cannabis Retailers
Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State
Business & Professions Code and overriding the location and design requirements contained in
Section 26054(b) of the State Business & Professions Code, cannabis retailers in the City shall
be subject to the following location and design requirements:
A. A cannabis retailer shall not be located on property within (1) six hundred (600) feet of a
school, day-care, or youth center or (2) fifty (50) feet of a dwelling unit within a residential
zone.
B. Subject to the requirements of this Chapter 127.5, a cannabis retailer may only be located
on property zoned Industrial (1) or Industrial -Commercial (I-C).
C. All distances specified In this Section 127.5.05 shall be measured in the following
manners:
1. For schools, day-care, or youth centers, the distance shall be measured in a
straight line from the subject property line to the closest property line of the lot on
which the cannabis retailer is to be located without regard to intervening structures.
2. For determining distance to dwelling units within residential zones, the distance
shall be measured in a straight line from the subject building to the closest dwelling
unit on the lot on which the cannabis retailer is to be located without regard to
intervening structures.
D. Notwithstanding any of the above requirements contained in Subsections A through C, a
cannabis retailer may be located on any property that is or was covered by a development
agreement entered into and approved pursuant to Chapter 127 of the City Municipal Code
prior to January 1, 2018, subject to the remaining requirements of this Chapter 127.5.
E. Each cannabis retailer shall:
1. Be constructed in a manner that prevents odors to surrounding uses, and promotes
quality design and construction, and consistency with the surrounding properties.
Odors from the cannabis retailer shall not be detectable from outside the premises
and adequate odor control technology shall be utilized;
2. Be provided with adequate electricity, sewage, disposal, water, fire protection, and
storm drainage facilities for the intended purpose; and
3. Maintain a neighborhood compatibility plan so the City Manager or designee(s)
may find that the cannabis retailer and its operating characteristics are not
detrimental to the public health, safety, convenience, or welfare of persons
residing, working, visiting, or recreating in the surrounding neighborhood and will
not result in the creation of a nuisance.
127.5.06: Chapter 127 Priority Cannabis Retailer Application Procedure
A. The People of the City find that:
The City Council permitted the operation of numerous cannabis businesses
engaged in commercial cannabis production activity under Chapter 127 of this
Code;
2. The vast majority of the cannabis businesses permitted under Chapter 127 of this
Code have failed to successfully commence commercial cannabis production
activity and comply with the requirements of the development agreement they
entered into with the City under Chapter 127 of this Code;
3. However, certain cannabis businesses permitted under Chapter 127 of this Code
have successfully commenced commercial cannabis production activity and
substantially complied with the requirements of the development agreement they
entered into with the City under Chapter 127 of this Code;
4. Providing the owners of cannabis businesses permitted under Chapter 127 of this
Code that have successfully commenced commercial cannabis production activity
and substantially complied with the requirements of the development agreement
they entered into with the City under Chapter 127 of this Code priority in the
issuance of retail cannabis business permits under this Chapter 127.6 carries out
the purpose and intent of the Measure;
5. Because of its history as an illegal industry, unfair and substandard labor practices
proliferate throughout the cannabis industry;
6. A proven track -record of cannabis business operations with high labor standards
and commitment to labor peace carries out the purpose and intent of the Measure;
and
7. Providing the owners of licensed cannabis businesses with a proven track -record
of cannabis business operations with high labor standards and commitment to
labor peace, as demonstrated by an active, long-term collective bargaining
agreement with a labor organization that currently represents cannabis workers in
the United States, priority in the issuance of retail cannabis business permits under
this Chapter 127.5 carries out the purpose and intent of the Measure.
B. Within thirty (30) days following the effective date of this Chapter 127.5, the Chief
Executive Officer, pursuant to Section 127.5.21, shall, as a ministerial duty, make
available the necessary forms, adopt any necessary application rules for the submission,
intake, review, and approval of retail cannabis business permit applications for cannabis
retailers meeting the following criteria:
An owner or owners of the applicant with an aggregate ownership interest of fifty
percent (50%) or more are or were an owner or owners on or prior to July 1, 2021,
with an aggregate ownership interest of fifty percent (50%) or more of a cannabis
business (and remains an owner or owners with an aggregate ownership interest
of fifty percent (50%) or more on the date of the application submission under this
Section 127.5.06) in the City that entered into a development agreement approved
pursuant to Chapter 127 of the City Municipal Code prior to January 1, 2018;
2. The cannabis retailer will be located on the property that is referenced in the
development agreement entered into and approved pursuant to Chapter 127 of the
City Municipal Code prior to January 1, 2018, referenced above in Subsection 1;
The cannabis retailer will be located on a property that is or was covered by (whole
or in part) a State license to conduct one or more forms of commercial cannabis
production activity issued by a licensing authority prior to January 1, 2019;
4. The cannabis retailer will be located on a property that is or was covered by (whole
or In part) a certificate of occupancy to conduct one or more forms of commercial
cannabis production activity issued by the City's Building & Safety Division prior to
January 1, 2021;
5. An owner or owners of the applicant with an aggregate ownership interest of fifty
percent (50%) or more are or were an owner or owners on or prior to July 1, 2021,
with an aggregate ownership interest of fifty percent (50%) or more of a cannabis
business (and remains an owner or owners with an aggregate ownership interest
of fifty percent (50%) or more on the date of the application submission under this
Section 127.5.06) in the City that paid at least one calendar quarter of mitigation
fees due under a development agreement approved pursuant to Chapter 127 of
the City Municipal Code following issuance of a certificate of occupancy to conduct
one or more forms of commercial cannabis production activity to the cannabis
business; and
6. The individual or natural person owner or owners of the applicant (disregarding
any intervening or intermediary entity owner or owners of the applicant) with an
aggregate ownership interest of one hundred percent (100%) have entered into a
collective bargaining agreement with a labor organization that currently represents
cannabis workers in the United States effective since at least July 1, 2021,
inclusive of renewals (and remaining effective, inclusive of renewals, on the date
of the application submission under this Section 127.5.06) or an owner or owners
of the applicant with an aggregate ownership interest of one hundred percent
(100%) are an owner or owners on or prior to July 1, 2021, with an aggregate
ownership interest of fifty percent (50%) or more of a cannabis business (and
remains an owner or owners with an aggregate ownership interest of fifty percent
(50%) or more on the date of the application submission under this Section
127.5.06) that entered into a collective bargaining agreement with a labor
organization that currently represents cannabis workers in the United States
effective since at least July 1, 2021, inclusive of renewals (and remaining effective,
inclusive of renewals, on the date of the application submission under this Section
127.5.06),
C. Within thirty (30) days of receipt of a retail cannabis business permit application for a
cannabis retailer submitted under Subsection 6, the Chief Executive Officer shall, as a
ministerial duty, review the retailer application for the following minimum requirements:
Payment of an application fee established by resolution of the City Council within
thirty (30) days following the effective date of this Chapter 127.5 to cover all costs
incurred by the City in the application process under this Section 127.5.06;
2. Sufficient evidence of the legal right to use the proposed property for the proposed
use, to include a lease, sublease, purchase agreement, assignment of purchase
agreement, or lease or purchase option, in the name of the applicant, which may
Include nominal consideration and be contingent upon issuance of a retail
cannabis business permit or other approvals. The City shall only consider one
applicant per County Assessor's Identification Number. In the event that more
than one applicant applies for a retail cannabis business permit application at a
given property address or a given County Assessor's Identification Number, the
Chief Executive Officer shall, as a ministerial duty, only accept the retail cannabis
business permit application with the earliest dated evidence of the legal right to
use the proposed property for the proposed use in the name of the applicant;
3. Sufficient evidence to demonstrate that an owner or owners of the applicant with
an aggregate ownership interest of fifty percent (50%) or more are or were an
owner or owners on or prior to July 1, 2021, with an aggregate ownership interest
of fifty percent (50%) or more of a cannabis business (and remains an owner or
owners with an aggregate ownership Interest of fifty percent (50%) or more on the
date of the application submission under this Section 127.5.06) in the City that
entered into a development agreement approved pursuant to Chapter 127 of the
City Municipal Code prior to January 1, 2018;
4. Sufficient evidence to demonstrate that the cannabis retailer will be located on the
property that is referenced in the development agreement entered into and
approved pursuant to Chapter 127 of the City Municipal Code prior to January 1,
2018, referenced above in Subsection 3;
5. Sufficient evidence to demonstrate that the cannabis retailer will be located on a
property that is or was covered by (whole or in part) a State license to conduct one
or more forms of commercial cannabis production activity Issued by a licensing
authority prior to January 1, 2019;
6, Sufficient evidence to demonstrate that the cannabis retailer will be located on a
property that is or was covered by (whole or in part) a certificate of occupancy to
conduct one or more forms of commercial cannabis production activity issued by
the City's Building & Safety Division prior to January 1, 2021;
7. Sufficient evidence to demonstrate that an owner or owners of the applicant with
an aggregate ownership interest of fifty percent (50%) or more are or were an
owner or owners on or prior to July 1, 2021, with an aggregate ownership interest
of fifty percent (50%) or more of a cannabis business (and remains an owner or
owners with an aggregate ownership interest of fifty percent (50%) or more on the
date of the application submission under this Section 127.5.06) in the City that paid
at least one calendar quarter of mitigation fees due under a development
agreement approved pursuant to Chapter 127 of the City Municipal Code following
Issuance of a certificate of occupancy to conduct one or more forms of commercial
cannabis production activity to the cannabis business;
8. Sufficient evidence to demonstrate that (a) the individual or natural person owner
or owners of the applicant (disregarding any intervening or intermediary entity
owner or owners of the applicant) with an aggregate ownership interest of one
hundred percent (100%) have entered Into a collective bargaining agreement with
a labor organization that currently represents cannabis workers in the United
States effective since at least July 1, 2021, inclusive of renewals (and remaining
effective, inclusive of renewals, on the date of the application submission under
this Section 127.5.06) or (b) an owner or owners of the applicant with an aggregate
ownership interest of one hundred percent (100%) are an owner or owners on or
prior to July 1, 2021, with an aggregate ownership interest of fifty percent (50%) or
more of a cannabis business (and remains an owner or owners with an aggregate
ownership interest of fifty percent (50%) or more on the date of the application
submission under this Section 127.5.06) that entered into a collective bargaining
agreement with a labor organization that currently represents cannabis workers in
the United States effective since at least July 1, 2021, inclusive of renewals (and
remaining effective, inclusive of renewals, on the date of the application
submission under this Section 127.5.06);
9. A premises diagram meeting the requirements of Section 15006 of Division 19 of
Title 4 of the State Code of Regulations; and
10. A completed background check application and receipt for each owner and
manager of the applicant pursuant to Section 127.5.18.L.
The Chief Executive Officer shall, as a ministerial duty, reject any retail cannabis business
permit application that fails to meet the minimum requirements contained in this
Subsection C. However, prior to such rejection, the Chief Executive Officer shall, as a
ministerial duty, provide a detailed and comprehensive deficiency notice to the applicant
providing the applicant thirty (30) days to cure and/or resubmit application components in
order to meet the minimum requirements contained in this Subsection C.
D. The Chief Executive Officer shall, as a ministerial duty, cease acceptance of retail
cannabis business permit applications for retailers pursuant to this Section 127.5.06 sixty
(60) days after making available the necessary forms and adopting any necessary
application rules for the submission, intake, review, and approval of retail cannabis
business permit applications for retailers pursuant to this Section 127.5.06,
E. Upon timely receipt of a retail cannabis business permit application, the Chief Executive
Officer shall direct the Chief of Police to conduct background checks in accordance with
Section 127.5.18.L. Upon the completion of an applicant's background checks by the
Chief of Police in accordance with Section 127.5.181, the Chief Executive Officer shall,
as a ministerial duty, issue retail cannabis business permits to applicants with complete
applications under Subsection C. However, the Chief Executive Officer shall not issue a
retail cannabis business permit to any applicant with an owner or manager that:
Provided false or misleading information on the applicant's retail cannabis
business permit application;
2. Has been convicted of (or pled no contest to) "an offense that is substantially
related to the qualifications, functions, or duties of the business or profession for
which the application is made" as that term is defined in 26057(b)(4) of the State
Business & Professions Code; or
3. Has been sanctioned by a licensing authority or a city, county, or state for
unlicensed commercial cannabis activities or has had a license suspended or
revoked under MAUCRSA in the three (3) years immediately preceding the date
the application was submitted.
F. Any decision of the Chief Executive Officer or City Council under this Section 127.5.06
shall be a final administrative decision not subject to administrative appeal under any
provisions of this Chapter 127.5 or any provisions of the City Municipal Code but, rather,
subject to judicial review and remedies.
127.6.07: City Council Developed Cannabis Retailer Application Procedure
A. After three -hundred -sixty-five (365) days following the effective date of this Chapter 127.5,
the City Council may, pursuant to the procedures set forth in the State Government Code
and the City Municipal Code and without prior approval of the electorate, amend this
Section 127.5.07, by the adoption or amendment of one or more ordinances to provide for
the issuance retail cannabis business permits in addition to those retail cannabis business
permits issued under Section 127.5.06, provided that such ordinance or amendment is
adopted by a two-thirds vote of the entire membership of the City Council and meets the
following minimum standards:
The number of retail cannabis business permits for retailers based within the City
issued pursuant to this Section 127.5.07 shall be no more than three (3);
2. The number of retail cannabis business permits for retailers (including commercial
cannabis businesses engaged in retail sales) based outside the City to engage in
delivery within the City issued pursuant to this Section 127.5.07 shall be zero (0);
3. At least one (1) of the retail cannabis business permits for retailers based within
the City issued pursuant to this Section 127.5.07 shall be issued to a social equity
applicant;
4. A cannabis retailer with a retail cannabis business permit issued pursuant to this
Section 127.5.07 shall not be located on property within (a) six -hundred (600) feet
of a school, day-care, or youth center, (b) fifty (50) feet of a dwelling unit within a
residential zone, or (c) two thousand (2,000) feet of another cannabis retailer;
5. All distances specified in this Section 127.5.07 shall be measured in the following
manners:
a. For schools, day-care, youth centers, or cannabis retailers, the distance
shall be measured in a straight line from the subject property line to the
closest property line of the lot on which the cannabis retailer is to be located
without regard to intervening structures.
b. For determining distance to dwelling units within residential zones, the
distance shall be measured in a straight line from the subject building to
the closest dwelling unit on the lot on which the cannabis retailer is to be
located without regard to intervening structures.
6. A cannabis retailer may only be located on property zoned Industrial (1) or
Industrial -Commercial (I-C);
7. Retail cannabis business permits for retailers based within the City issued pursuant
to this Section 127.5.07 shall be awarded through a merit -based process in which
the Chief Executive Officer and/or City Council shall review and score applications
pursuant to objective review criteria; and
8. Cannabis retailers based within the City issued retail cannabis business permits
pursuant to this Section 127.5.07 shall comply with the requirements set forth in
this Chapter 127.5, Title XV of the City Municipal Code, MAUCRSA, and all other
applicable State and local laws, rules, and regulations.
B. The maximum number of retail cannabis business permits issued for cannabis retailers
based within the City or outside the City (including commercial cannabis businesses
engaged in retail sales) issued pursuant to this Section 127.5.07 may not be amended by
the City Council or regulations promulgated by the Chief Executive Officer pursuant to this
Chapter 127.5. However, the City Council may and shall increase the maximum number
of retail cannabis business permits Issued for retailers based within the City or outside the
City (including commercial cannabis businesses engaged in retail sales) if ordered to do
so by a court of competent jurisdiction as a judicial remedy.
127.6.08: Limitations on the City's Liability
To the fullest extent permitted by law, the City shall not assume any liability whatsoever with
respect to having Issued a retail cannabis business permit pursuant to this Chapter 127.5 or
otherwise approving the operation of any cannabis retailer. As a condition to the approval of any
retail cannabis business permit, the applicant shall be required to meet all of the following
conditions before they can receive a retail cannabis business permit:
A. Execution of an agreement, in a form approved by the City Attorney, agreeing to indemnify,
defend (at applicant's sole cost and expense), and hold the City, and its officers, officials,
employees, representatives, and agents, harmless, from any and all claims, losses,
damages, injuries, liabilities, or losses which arise out of, or which are in any way related
to, the City's issuance of the retail cannabis business permit, the City's decision to approve
the operation of the cannabis retailer or activity, the process used by the City in making
its decision, or the alleged violation of any federal, State, or local laws by the cannabis
retailer or any of its officers, employees, or agents.
B. Maintain insurance at coverage limits, and with conditions thereon determined necessary
and appropriate from time to time by the City Attorney.
C. Defend and indemnify the City for all costs and expenses, including but not limited to
attorneys' fees and court costs, that the City may be required to pay as a result of any
legal challenge related to the City's approval of the applicant's retail cannabis business
permit or related to the City's approval of a cannabis retail sales. The City, at its sole
discretion, may participate at its own expense in the defense of any such action, but such
participation shall neither relieve nor increase any of the obligations imposed on the
applicant hereunder.
127.6.09: Retail Cannabis Business Permit Term
A. Subject to this Section 127.5.09 and Section 127.5.10, the term of each retail cannabis
business permit shall be indefinite.
B. Upon the one (1) year anniversary of the date of issuance for each retail cannabis
business permits and every other year thereafter, the Chief Executive Officer shall conduct
a performance review of the permittee to assess compliance with the requirements of this
Chapter 127.5. Within thirty (30) days of the conclusion of the annual performance review
of the permittee, the Chief Executive Officer shall issue a letter of compliance or
noncompliance outlining all items to be corrected to ensure full compliance. In the event
of any noncompliance, the permittee shall have sixty (60) days to remedy such
noncompliance. However, in the event such noncompliance items cannot be reasonably
remedied within sixty (60) days, such noncompliance items shall not constitute a serious
material violation of any law and/or any rule, regulation, and/or standard adopted pursuant
to this Chapter 127.5 subject to suspension or revocation under Section 127.5.10, if the
permittee commences correction of such noncompliance items within sixty (60) days and
thereafter diligently prosecutes correction of such noncompliance items to completion.
C. The permittee shall pay a fee in an amount to be set by the City Council via resolution to
cover the costs of conducting the performance review, together with any costs incurred by
the City to administer the program created under this Chapter 127.5.
127.6.10: Suspension and Revocation of Retail Cannabis Business Permits
A. The Chief Executive Officer may suspend or revoke a retail cannabis business permit for
any serious material violation of any law and/or any rule, regulation, and/or standard
adopted pursuant to this Chapter 127.5.
B. Suspension or revocation of a State license issued by the State or by any of its
departments or divisions, corresponding to the retail cannabis business permit shall
Immediately result in the suspension of the associated retail cannabis business permit
until the State, or its applicable department or division, reinstates the State license or
otherwise lifts such suspension.
C. A permittee shall inform the Chief Executive Officer or designee(s) of any suspension,
revocation, or termination of a State license corresponding to Its retail cannabis business
permit within five (5) business days of the suspension, revocation, or termination of the
State license.
127.6.11: Appeals Regarding Retail Cannabis Business Permits
A. Within ten (10) calendar days after the date of a decision of the Chief Executive Officer to
revoke or suspend an issued retail cannabis business permit, an aggrieved party may
appeal such action by filing a written appeal with the City Clerk setting forth the reasons
why the decision was not proper. An appeal shall stay all proceedings in furtherance of
the appealed action.
B. At the time of filing, the appellant shall pay the designated appeal fee established by
resolution of the City Council,
C. Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing before
the City Council. The City Council shall hear the matter de novo, and shall conduct the
hearing pursuant to the procedures set forth by the City.
D. The appeal shall be held within a reasonable time after the filing the appeal, but in no
event later than ninety (90) days from the date of such filing. The City shall notify the
appellant of the time and location at least ten (10) days prior to the date of the hearing.
E. At the hearing, the appellant may present any information they deem relevant to the
decision appealed. The formal rules of evidence and procedure applicable in a court of
law shall not apply to the hearing.
F. At the conclusion of the hearing the City Council may affirm, reverse, or modify the
decision appealed. The decision of the City Council shall be a final administrative
decision, subject to judicial review and remedies.
127.6.12: Change in Location; Updated Application Information
A. A permittee may change the business location specified in a retail cannabis business
permit upon submission and approval of a change in location application promulgated, as
a ministerial duty, by the Chief Executive Officer pursuant to regulations adopted under
Section 127.5.12 within one -hundred eighty (180) days following the effective date of this
Chapter 127.5. The permittee shall pay an application fee established by resolution of the
City Council to cover all costs incurred by the City in the review and processing of change
in location applications. The Chief Executive Officer shall process such change in location
applications as a ministerial duty within thirty (30) days of receipt. A proposed business
location for a cannabis retailer in a change in location application shall meet the following
requirements:
1. A cannabis retailer shall not be located on property within (a) six -hundred (600)
feet of a school, day-care, or youth center, (b) fifty (50) feet of a dwelling unit within
a residential zone, or (c) two thousand (2,000) feet of another cannabis retailer;
2. All distances specified in this Section 127.5,12 shall be measured in the following
manners:
a. For schools, day-care, youth centers, or cannabis retailers, the distance
shall be measured in a straight line from the subject property line to the
closest property line of the lot on which the cannabis retailer is to be located
without regard to intervening structures.
b. For determining distance to dwelling units within residential zones, the
distance shall be measured in a straight line from the subject building to
the closest dwelling unit on the lot on which the cannabis retailer is to be
located without regard to intervening structures.
3. A cannabis retailer may only be located on property zoned Industrial (1) or
Industrial -Commercial (1-0).
B. An applicant or permittee shall notify the Chief Executive Officer or designee(s) within
fifteen (15) calendar days of any material change in the information provided in the
applicant or permittee's retail cannabis business permit application or any change in status
of compliance with the provisions of this Chapter 127.5, including any change in the
cannabis retailer ownership or management.
127.6.13: Transfer of a Retail Cannabis Business Permit.
A. An owner of a retail cannabis business permit shall not transfer ownership or control of
such permit to another person unless and until the permittee and transferee obtain an
amendment to the permit from the Chief Executive Officer stating that the transferee is
now an owner of the permittee. A permittee may change the ownership specified in a
retail cannabis business permit upon submission and approval of a change in ownership
application promulgated, as a ministerial duty, by the Chief Executive Officer pursuant to
regulations adopted under Section 127.5.21 within one -hundred eighty (180) days
following the effective date of this Chapter 127.5. The permittee shall pay an application
fee established by resolution of the City Council to cover all costs incurred by the City in
the review and processing of change in ownership applications. The Chief Executive
Officer shall process such change in ownership applications as a ministerial duty within
five (5) business days once the Chief Executive Officer reasonably determines that the
transferee passed the background check required for owners and meets all other
requirements of this Chapter 127.5.
B. Notwithstanding Subsection A, no retail cannabis business permit may be transferred
when the Chief Executive Officer has notified the permittee that its retail cannabis
business permit has been or may be suspended or revoked.
C. Any attempt to transfer a retail cannabis business permit either directly or indirectly in
violation of this Section 127.5.13 is hereby declared void, and such an unpermitted
transfer shall be deemed a ground for revocation of the permit.
127.6.14: Records and Recordkeeping
A. Each cannabis retailer shall maintain accurate books and records in an electronic format,
which detail all revenues and expenses of the business, including, but not limited to, all of
its assets and liabilities. At the time of the performance review of a retail cannabis
business permit issued pursuant to this Chapter 127.5, each cannabis retailer shall file a
sworn statement detailing the number of sales by the cannabis retailer during the previous
12-month period (or shorter period based upon the timing of the request) detailing sales
for each month within such period in question. The statement shall also include gross
sales for each month and all applicable taxes paid or due to be paid.
B. Each cannabis retailer shall maintain a current register of the names and the contact
Information (including the name, address, and telephone number) of anyone owning or
holding an interest in the cannabis retailer and, separately, the same contact information
of all officers, managers, employees, agents, and volunteers currently employed or
otherwise engaged by the cannabis retailer. The register required by this Subsection shall
be provided to the Chief Executive Officer upon a reasonable request.
C, Each cannabis retailer shall maintain a record of all purchases and sales of cannabis and
cannabis products for a period of no less than seven (7) years.
D. All cannabis retailers shall maintain an inventory control and reporting system that
accurately documents the present location, amounts, and descriptions of all cannabis and
cannabis products,
E, Subject to any applicable restrictions under the Health Insurance Portability &
Accountability Act ("HIPAN) regulations, each cannabis retailer shall grant the Chief
Executive Officer access to the business's books, records, accounts, together with any
other data or documents relevant to its operation, for the purpose of conducting an audit
or examination. Books, records, accounts, and any and all relevant data or documents
shall be produced no later than ten (10) business days after receipt of the Chief Executive
Officer's request for such data, unless otherwise stipulated by the Chief Executive Officer.
The Chief Executive Officer may require the materials to be submitted in an electronic
format that is compatible with the City's software and hardware.
127.6.15: Security Measures
A. A cannabis retailer shall implement sufficient security measures to deter and prevent the
unauthorized entrance into areas containing cannabis or cannabis products and to deter
and prevent the theft of cannabis or cannabis products at the cannabis retailer. Except
as may otherwise be determined by the Chief Executive Officer, these security measures
shall include, but are not limited to, all of the following:
Preventing individuals from remaining on the premises of the cannabis retailer if
they are not engaging in an activity directly related to the permitted operations of
the cannabis retailer.
2. Establishing limited access areas accessible only to authorized cannabis retailer
personnel.
3. All cannabis and cannabis products shall be stored in a secured and locked room,
safe, or vault. All cannabis and cannabis products shall be kept in a manner
designed to prevent diversion, theft, and loss.
4. Installing twenty -four-hour security surveillance cameras of at least HD -quality to
monitor all entrances and exits to and from the premises, all interior spaces within
the cannabis retailer, which are open and accessible to the public, all interior
spaces where cannabis, cash or currency, is being stored for any period of time
on a regular basis, and all interior spaces where diversion of cannabis could
reasonably occur, The cannabis retailer shall be responsible for ensuring that the
security surveillance camera's footage is remotely accessible by the Chief
Executive Officer, and that It is compatible with the City's software and hardware.
Video recordings shall be maintained for a minimum of ninety (90) days and shall
be made available to the Chief Executive Officer upon request. Video shall be of
sufficient quality for effective prosecution of any crime found to have occurred on
the site of the cannabis retailer.
5. Sensors shall be installed to detect entry and exit from all secure areas.
6. Panic buttons shall be installed in all cannabis retailers.
7. Having a professionally installed, maintained, and monitored alarm system.
8. Any bars installed on the windows or the doors of the cannabis retailer shall be
installed only on the interior of the building.
9. The premises shall be live monitored twenty-four (24) hours a day unless the
cannabis retailer has an alternative security program authorized by the Chief
Executive Officer. Security personnel must be licensed by the State Bureau of
Security & Investigative Services personnel and shall be subject to the prior review
and approval of the Chief Executive Officer, which shall not be unreasonably
withheld.
10. Additional security measures may be added through the review of a retail cannabis
business permit application.
B. Each cannabis retailer shall identify a designated security representative or liaison to the
City, who shall be reasonably available to meet with the Chief Executive Officer regarding
any security related measures or and operational issues.
C. Each cannabis retailer (including as part of the retail cannabis business permit application
process) shall have a storage and transportation plan and currency management plan,
which describes in detail the procedures for safely and securely storing, disposing and
transporting all cannabis, cannabis products, and any currency.
D. The cannabis retailer shall cooperate with the City whenever the Chief Executive Officer
makes a request, upon reasonable notice to the cannabis retailer, to inspect or audit the
effectiveness of any security plan or of any other requirement of this Chapter 127.5.
E. A cannabis retailer shall notify the Chief Executive Officer within twenty-four (24) hours
after discovering any of the following:
Significant discrepancies identified during inventory. The level of significance shall
be determined by the regulations promulgated by the Chief Executive Officer,
2. Diversion, theft, loss, or any criminal activity Involving the cannabis retailer or any
agent or employee of the cannabis retailer.
3. The loss or unauthorized alteration of records related to cannabis and cannabis
products or registering customers or employees and/or agents of the cannabis
retailer.
4. Any other breach of security.
127.5.16: Restriction on Alcohol and Tobacco Sales
No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or
tobacco on or about the premises of the cannabis retailer.
127.6.17: Fees and Charges
A. No person may commence or continue any cannabis retail sales in the City without timely
paying In full all fees and charges required for the operation of a cannabis retail sales,
Fees and charges associated with the operation of such activity shall be established by
resolution of the City Council which may be amended from time to time,
B. All cannabis retailers authorized to operate under this Chapter 127.5 shall pay all sales,
use, business and other applicable taxes, and all license, registration, and other fees
required under federal, State, and local law, Each cannabis retailer shall cooperate with
City with respect to any reasonable request to audit the cannabis retailer' books and
records for the purpose of verifying compliance with this Section 127.5,20, including, but
not limited to, a verification of the amount of taxes required to be paid during any period.
127.6.18: General Operating Requirements
A. Cannabis retailers may operate only during the hours specified in the retail cannabis
business permit issued by the City and must comply with State law at all times.
B. Cannabis shall not be consumed on the premises of any cannabis retailer.
C. No cannabis or cannabis products or graphics depicting cannabis or cannabis products
shall be visible from the exterior of any property Issued a retail cannabis business permit
or on any of the vehicles owned or used as part of the cannabis retailer. No outdoor
storage of cannabis or cannabis products is permitted at any time.
D. Each cannabis retailer shall have in place a point -of -sale or management inventory
tracking system to track and report on all aspects of the cannabis retailer including, but
not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight
and by sale), and other information which may be deemed necessary by the City. The
cannabis retailer shall ensure that such information is compatible with the City's record -
keeping systems. In addition, the system must have the capability to produce historical
transactional data for review. Furthermore, any system selected must be approved and
authorized by the Chief Executive Officer prior to being used by a permittee.
E, All cannabis and cannabis products sold and/or distributed shall be cultivated,
manufactured, and distributed by licensed facilities that maintain operations in full
conformance with the State and local regulations. The packaging and labeling of cannabis
and cannabis products shall comply at all times with State law.
F. There shall not be a physician located in any cannabis retailer at any time for the purpose
of evaluating patients for the issuance of a medicinal cannabis recommendations.
G. Each cannabis retailer shall provide the Chief Executive Officer with the name, telephone
number (both land line and mobile, if available) of an on -site employee or owner to whom
emergency notice can be provided at any hour of the day.
H. Signage and Notices.
In addition to the requirements otherwise set forth in this Section 127.6.18,
business identification signage for a cannabis retailer shall conform to the
requirements of the City Municipal Code, including, but not limited to, seeking the
issuance of a City sign permit.
2. No signs placed on the premises of a cannabis retailer shall obstruct any entrance
or exit to the building or any window.
3. Each entrance to a cannabis retailer shall be visibly posted with a clear and legible
notice indicating that smoking, ingesting, or otherwise consuming cannabis on the
premises, or in the areas adjacent to the premises, is prohibited.
4. The entrance to the cannabis retailer shall be clearly and legibly posted with a
notice that no person under the age of twenty-one (21) years of age is permitted
to enter upon the premises of the cannabis retailer, other than as lawful customers
permitted under State law.
Other than as lawful customers permitted under State law in the case of retailers,
individuals under the age of twenty-one (21) years shall not be allowed on the premises
of a cannabis retailer and shall not be allowed to serve as a driver for a cannabis retailer.
It shall be unlawful and a violation of this Chapter 127.5 for any person to employ any
person at a cannabis retailer who is not at least twenty-one (21) years of age.
J. Odor control devices and techniques shall be. incorporated in all cannabis retailers to
ensure that odors from cannabis are not detectable off -site. Cannabis retailers shall
provide a sufficient odor absorbing ventilation and exhaust system so that odor generated
inside the cannabis retailer that is distinctive to its operation is not detected outside of the
facility, anywhere on adjacent property or public rights -of -way, on or about the exterior or
interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other
areas available for use by common tenants or the visiting public, or within any other unit
located inside the same building as the cannabis retailer.
K. The original copy of the retail cannabis business permit issued by the City pursuant to this
Chapter 127.5 and the City issued business license shall be posted inside the cannabis
retailer in a location readily visible to the public.
L. Pursuant to Sections 11105(b)(11) and 13300(b)(11) of the State Penal Code, which
authorizes City authorities to access State and local summary criminal history information
for employment, licensing, or certification purposes; and authorizes access to federal level
criminal history information by transmitting fingerprint images and related information to
the Department of Justice to be transmitted to the Federal Bureau of Investigation, every
person listed as an owner, manager, supervisor, employee, or volunteer of the cannabis
retailer must submit fingerprints and other information deemed necessary by the Chief
Executive Officer for a background check. Pursuant to Sections 11105(b)(11) and
13300(b)(11) of the State Penal Code, which requires that there be a requirement or
exclusion from employment, licensing, or certification based on specific criminal conduct
on the part of the subject of the record, no person shall be issued a retail cannabis
business permit unless they have first cleared the background check, as determined by
the Chief Executive Officer, as required by this Chapter 127.5. A fee for the cost of the
background investigation, which shall be the actual cost to the City to conduct the
background investigation as it deems necessary and appropriate, shall be paid at the time
the application for a retail cannabis business permit is submitted.
No owner, manager, supervisor, employee, or volunteer of the cannabis retailer shall:
1. Have been convicted of (or pled no contest to) "an offense that is substantially
related to the qualifications, functions, or duties of the business or profession for
which the application is made" as that term is defined in 26057(b)(4) of the State
Business & Professions Code; or
2. Have been sanctioned by a licensing authority or a city, county, or state for
unlicensed commercial cannabis activities or has had a license suspended or
revoked under MAUCRSA in the three (3) years immediately preceding the date
the application was submitted.
M. The cannabis retailer shall prohibit loitering by persons outside the facility both on the
premises and within fifty (50) feet of the premises.
N. Within sixty (60) days of licensure, for a permittee with two (2) or more employees, the
permittee shall attest to the City that the permittee has entered into a labor peace
agreement and will abide by the terms of the agreement. The permittee shall submit a
copy of the page of the labor peace agreement that contains the signatures of the labor
representative and the applicant. For permittees with less than two (2) employees who
have not yet entered into a labor peace agreement, the permittee shall provide a notarized
statement indicating that the applicant will enter into and abide by the terms of a labor
peace agreement within thirty (30) days after employing two (2) employees. If an
attestation that the permittee is party to a labor peace agreement, and a copy of the page
of the labor peace agreement that contains the signatures of the labor representative was
submitted to the City by the permittee as part of the application process, that will meet this
obligation.
O. Cannabis retailers shall implement a workforce plan that includes at least the following
provisions:
1. Commitment for thirty percent (30%) of employees to be local hires; this local hiring
requirement is satisfied when a cannabis retailer shows that it has either hired or
made a good faith effort to hire bona fide residents of the City or persons that may
establish residency after initial employment with the permittee;
2. Commitment to offer apprenticeships and/or compensation for continuing
education in the field of cannabis retail sales; and
3. Entering into a collective bargaining agreement and/or paying a living wage to
employees. "Living wage" means fifty percent (50%) more than the applicable
amount of the hourly minimum wage mandated by State law (convertible to an
annual salary by multiplying that hourly minimum wage by 2,080, as applicable),
whichever is greater.
P. It shall be unlawful for a cannabis retailer to discriminate in any manner or take adverse
action against any employee in retaliation for exercising rights protected under this
Chapter 127.5 or City or State law. These rights include, but are not limited to (1) the right
to file a complaint or inform any person about any party's alleged noncompliance with this
Chapter 127.5 or City or State law and (2) the right to inform any person of his or her
potential rights under this this Chapter 127.5 or City or State law and to assist him or her
in asserting such rights. Protections under this this Chapter 127.5 or City or State law
shall apply to any employee who mistakenly, but in good faith, alleges noncompliance with
this Chapter 127.5 or City or State law. Taking adverse action against an employee within
ninety (90) days of the employee's exercise of rights protected under this this Chapter
127.5 or City or State law shall raise a rebuttable presumption of having done so in
retaliation for the exercise of such rights,
127.6.19: Additional Operating Requirements
A. Retailers and the operation thereof shall comply with State law at all times.
B. Prior to dispensing medicinal cannabis or medicinal cannabis products to a qualified
patient, a retailer shall verify the age and all necessary documentation of each customer
to ensure the customer is not under the age of eighteen (18) years and obtain verification
from the recommending physician that the person requesting medicinal cannabis or
medicinal cannabis products is a qualified patient, and shall maintain a copy of the
physician recommendation or Identification card as described in Sections 11362,71
through 11362.77 of State Health & Safety Code, as may be amended from time to time,
on site for period of not less than seven (7) years.
C. Prior to dispensing cannabis or cannabis products to an adult -use customer, a retailer
shall verify the age and all necessary documentation of each customer to ensure the
customer is not under the age of twenty-one (21) years.
D. All restroom facilities shall remain locked and under the control of managers onsite.
E, A retailer shall notify customers (verbally or by written agreement) and by posting of a
notice or notices conspicuously in at least 15-point type within the permitted premises that
state as follows:
1. "The sale or diversion of cannabis or cannabis products without a license issued
by the City of Baldwin Park is a violation of State law and the Baldwin Park
Municipal Code."
2. "Secondary sale, barter, or distribution of cannabis or cannabis products
purchased from a permittee is a crime and can lead to arrest,"
"Customers must not loiter in or near these premises and may not consume
cannabis or cannabis products in the vicinity of this business or in any place not
lawfully permitted. These premises and vicinity are monitored to ensure
compliance."
4. "WARNING: The use of cannabis or cannabis products may impair a person's
ability to drive a motor vehicle or operate heavy machinery."
5. "CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis -derived
products will expose you and those in your immediate vicinity to cannabis
smoke. Cannabis smoke is known by the State of California to cause cancer and
reproductive harm."
127.6.20: Additional Operating Requirements for Delivery
A. Delivery shall comply with State law at all times.
B. Security plans developed pursuant to this Chapter 127.5 shall include provisions relating
to vehicle security and the protection of employees and product during loading and in
transit.
C. A retailer shall facilitate the delivery of cannabis or cannabis products with a technology
platform owned by or licensed to the delivery -only retailer that uses point -of -sale
technology to track and database technology to record and store the following information
for each transaction involving the exchange of cannabis or cannabis products between
the retailer and customer:
1. The identity of the individual dispensing cannabis or cannabis products on behalf
of the permittee;
2. The identity of the customer receiving cannabis or cannabis products from the
permittee;
3. The type and quantity of cannabis or cannabis products dispensed and received;
4. The gross receipts charged by the permittee and received by the individual
dispensing cannabis or cannabis products on behalf of the permittee for the
cannabis or cannabis products dispensed and received; and
5. The location or address where the sale or retail sale took place or closed.
D. A permittee shall maintain a database and provide a list of the individuals and vehicles
authorized to conduct delivery, and a copy of the valid State driver's license issued to the
driver of any such vehicle on behalf of the retailer to the Chief Executive Officer.
E. Individuals making deliveries of cannabis or cannabis products on behalf of the retailer
shall maintain a physical copy of the delivery request (and invoice) and shall make It
available upon the request of agents or employees of the City requesting documentation.
F. During delivery, a copy of the permittee's retail cannabis business permit and State license
shall be in the vehicle at all times, and the driver shall make it available upon the request
of agents or employees of the City requesting documentation.
G. A retailer shall only permit or allow delivery of cannabis or cannabis products in a vehicle
that is (1) insured at or above the legal requirement in the State; (2) capable of securing
(locking) the cannabis or cannabis products during transportation; (3) capable of being
temperature controlled if perishable cannabis or cannabis products is being transported;
and (4) does not display advertising or symbols visible from the exterior of the vehicle that
suggest the vehicle is used for cannabis delivery or affiliated with a retailer.
H. A retailer shall facilitate deliveries with a technology platform owned by or licensed to the
retailer that uses global positioning system technology to track, and database technology
to record and store the following information:
1. The time that the individual conducting delivery on behalf of the retailer departed
the licensed premises.
2, The time that the individual conducting delivery on behalf of the retailer completed
delivery to the customer.
3. The time that the individual conducting delivery on behalf of the retailer returned
to the licensed premises.
4. The route the individual conducting delivery on behalf of the retailer traveled
between departing and returning to the licensed premises to conduct delivery.
5. For each individual delivery transaction, the identity of the individual conducting
deliveries on behalf of the retailer.
6. For each individual delivery transaction, the vehicle used to conduct delivery on
behalf of the retailer.
7. For each individual delivery transaction, the identity of the customer receiving
cannabis or cannabis products from the retailer.
8, For each Individual delivery transaction, the type and quantity of cannabis or
cannabis products dispensed and received.
9. For each individual delivery transaction, the gross receipts charged by the retailer
and received by the individual conducting deliveries on behalf of the retailer for
the cannabis or cannabis products dispensed and received.
I. The individual making deliveries on behalf of the retailer shall personally verify for each
individual delivery transaction the identity of the customer receiving cannabis or cannabis
products from the retailer and (1) for medicinal cannabis or medicinal cannabis products
to a qualified patient, the age and all necessary documentation of each customer to ensure
the customer is not under the age of eighteen (18) years and obtain verification from the
recommending physician that the person requesting medicinal cannabis or medicinal
cannabis products is a qualified patient, and shall maintain a copy of the physician
recommendation or identification card as described in Sections 11362.71 through
11362.77 of State Health & Safety Code, as may be amended from time to time, on site
for period of not less than seven (7) years or (2) for cannabis or cannabis products to an
adult -use customer, age and all necessary documentation of each customer to ensure the
customer is not under the age of twenty-one (21) years.
127.6.21: Promulgation of Regulations, Standards, and Other Legal Duties
A. Consistently with stated requirements of this Chapter 127.5 (and in particular not to repeal
or constructively repeal this Chapter 127.5), in addition to any regulations adopted under
State law, the Chief Executive Officer is authorized to establish any additional rules,
regulations, and standards governing the issuance, denial, or renewal of retail cannabis
business permits, the ongoing operation of cannabis retailers, and the City's oversight, or
concerning any other subject determined to be necessary to carry out the purposes of this
Chapter 127.5.
B. Such regulations shall be published on the City's website.
C. Regulations promulgated by the Chief Executive Officer shall become effective upon date
of publication. Cannabis retailers shall be required to comply with all State and local laws
and regulations, including but not limited to any rules, regulations or standards adopted
by the Chief Executive Officer,
127.5.22: Community Relations
A. Each cannabis retailer shall provide the name, telephone number, and email address of a
community relations contact to whom notice of problems associated with the cannabis
retailer can be provided. Each cannabis retailer shall also provide the above information
to all businesses and residences, in the City, located within one hundred and fifty (150)
feet of the cannabis retailer. Such community relations contact shall respond to any
complaints within forty-eight (48) hours of receipt of such complaints.
B. During the first year of operation pursuant to this Chapter 127.5, the owner(s), manager(s),
and community relations representative from each cannabis retailer holding a retail
cannabis business permit issued pursuant to this Chapter 127.5 shall attend a quarterly
meeting with the Chief Executive Officer and other interested parties as deemed
appropriate by the Chief Executive Officer, to discuss costs, benefits, and other community
issues arising as a result of implementation of this Chapter 127.5. After the first year of
operation, the owner(s), manager(s), and community relations representative from each
such cannabis retailer shall meet with the Chief Executive Officer when and as requested
by the Chief Executive Officer.
C. Cannabis retailers to which a retail cannabis business permit is issued pursuant to this
Chapter 127.5 shall develop and make available to youth organizations and educational
institutions a public education plan that outlines the risks of youth addiction to cannabis,
and that identifies resources available to youth related to drugs and drug addiction.
127.6.23: Fees Deemed Debt to City
The amount of any fee, cost, or charge imposed pursuant to this Chapter 127.5 shall be deemed
a debt to the City that Is recoverable via authorized processes as set forth in the City Municipal
Code or available through any court of competent jurisdiction.
127.6.24: Permittee, Owner, and Property Owner Responsible for Violations
A. Each permittee and each owner and each manager of the permittee (and each individual
owner and each individual manager of an owner or manager of the permittee) shall be
responsible for all violations of the laws of the State or of the regulations and/or the
ordinances of the City occurring within the City or in or about the premises of the cannabis
retailer, if committed by the permittee or any employee or agent of the permittee and
whether or not said violations occur within the permittee, owner, or manager's presence.
B. No person may engage in any cannabis retail sales within the City unless the person is in
compliance with the requirements of this Chapter 127.5.
C. It shall be unlawful to rent, lease, or otherwise permit any cannabis retail sales at any
location, structure, or vehicle in the City by a person (1) that does not have a valid retail
cannabis business permit issued by the City; (2) that does not have a valid State license;
(3) that does not have any other applicable approvals, including, but not limited to, a
building permit and City business license; or (4) that is not currently in compliance with all
applicable State and local laws and regulations pertaining to the cannabis retail sales.
Property owners shall have strict liability for any cannabis retail sales at any location,
structure, or vehicle in the City by a person (1) that does not have a valid retail cannabis
business permit issued by the City or (2) that does not have a valid State license.
127.6.26: Inspection and Enforcement.
A. The Chief Executive Officer or designee(s) charged with enforcing the provisions of the
City Municipal Code, or any provision thereof, may enter the location of a cannabis retailer
at any time, without notice, and inspect the location of any cannabis retailer as well as any
recordings and records required to be maintained pursuant to this Chapter 127.5 or under
applicable provisions of State law.
B. It is unlawful for any person having responsibility over the operation of a cannabis retailer,
to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an
inspection, review or copy records, recordings, or other documents required to be
maintained by a cannabis retailer under this Chapter 127.5 or under State or local law. It
Is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records,
recordings or other documents required to be maintained by a cannabis retailer under this
Chapter 127.5 or under State or local law.
C. The Chief Executive Officer or designee(s) charged with enforcing the provisions of this
Chapter 127.5 may enter the location of a cannabis retailer at any time during business
hours and without notice to obtain samples of the cannabis to test for public safety
purposes. Any samples obtained by the City shall be logged, recorded, and maintained
in accordance with the City law enforcement standards for evidence.
127.6.26: Concurrent Regulation with the State
It is the stated intent of this Chapter 127.5 to regulate cannabis retail sales in the City concurrently
with the State.
127.6.27: Violations Declared a Public Nuisance
Each and every serious material violation of the provisions of this Chapter 127.5 is hereby deemed
unlawful and a public nuisance.
127.5.28: Each Violation a Separate Offense
Each and every violation of this Chapter 127.5 shall constitute a separate violation and. shall be
subject to all remedies and enforcement measures authorized by the City Municipal Code.
Additionally, as a nuisance per se, any serious material violation of this Chapter 127.5 shall be
subject to injunctive relief, any retail cannabis business permit issued pursuant to this Chapter
127.5 being deemed null and void, disgorgement, and payment to the City of any monies
unlawfully obtained, costs of abatement, costs of investigation, attorney's fees, and any other
relief or remedy available at law or In equity. The City may also pursue any and all remedies and
actions available and applicable under State and local laws for any violations committed by the
cannabis retailer or persons related to, or associated with, the cannabis retail sales. Additionally,
when there is determined to be an imminent threat to public health, safety or welfare, the Chief
Executive Officer or designee(s), may take immediate action to temporarily suspend a retail
cannabis business permit issued by the City, pending a public hearing before the City Council.
127.6.29: Criminal Penalties
Each and every serious material violation of the provisions of this Chapter 127.6 may be
prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one
thousand dollars ($1,000.00) or imprisonment in the County jail for a period of not more than six
(6) months, or by both such fine and imprisonment. Each day a serious material violation is
committed or permitted to continue shall constitute a separate offense.
127.6.30: Remedies Cumulative and Not Exclusive.
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
SECTION 6. Title XI (Business Regulations) of the City Municipal Code is hereby
amended by adding Chapter 127.6 (Cannabis Retailer Tax) to read as follows:
CHAPTER 127.6. Cannabis Retailer Tax
127.6,01: Authority and Purpose
A. The purpose of this Chapter is to adopt a tax, for revenue purposes, pursuant to Sections
37101 and 37100.5 of the State Government Code, upon cannabis retailers that engage
In business in the City. This Cannabis Retailer Tax is levied based upon business gross
receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property.
B. The Cannabis Retailer Tax is a general tax enacted solely for general governmental
purposes of the City and not for specific purposes. All of the proceeds from the tax
imposed by this Chapter 127.6 shall be placed in the City's general fund and be available
for any lawful City expenditure.
127.6.02: Intent
The intent of this Chapter 127.6 is to impose a general tax applicable to cannabis retailers for the
purpose of funding any and all governmental purposes, including but not limited to 911 emergency
response, police and fire protection services; pothole repair; afterschool programs; senior
services; homeless reduction; graffiti removal, and other City general fund services.
127.6.03: Definitions
When used in this Chapter 127.6, the following words shall have the meanings ascribed to them
as set forth herein. Words and phrases not specifically defined below shall have the meanings
ascribed to them elsewhere in this Code, or shall otherwise be defined by common usage. For
definitions of nouns, the singular shall also include the plural; for definitions of verbs, all verb
conjugations shall be included. Any reference to State statutes includes any regulations
promulgated thereunder and is deemed to include any successor or amended version of the
referenced statute or regulatory provision
"Adult -use cannabis" or "adult -use cannabis product" means cannabis or cannabis products for
individuals twenty-one (21) years of age and over without the need for a physician's
recommendation.
"Business" means all activities engaged in or caused to be engaged in within the City, including
any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or
livelihood, whether or not carried on for gain or profit, but shall not include the services rendered
by an employee to that employee's employer.
"Cannabis" has the same meaning as defined in Chapter 127.5 of the City Municipal Code.
"Cannabis business" has the same meaning as defined in Chapter 127.5 of the City Municipal
Code.
"Cannabis product" has the same meaning as defined in Chapter 127,5 of the City Municipal
Code.
"Cannabis Retailer Tax" or "Tax" means the tax due pursuant to this Chapter 127.6 for engaging
in dispensing within in the City.
"City" means the City of Baldwin Park, State of California.
"City Council" means the City Council of the City of Baldwin Park.
"Commercial cannabis activity" has the same meaning as defined in Chapter 127.5 of the City
Municipal Code.
"Code" means the City Municipal Code.
"Customer" has the same meaning as defined in Chapter 127.5 of the City Municipal Code.
"Delivery" has the same meaning as defined in Chapter 127.5 of the City Municipal Code.
"Dispensary" or "retailer" or "cannabis retailer" has the same meaning as defined in Chapter 127.5
of the City Municipal Code.
"Dispensing" or "retail sale(s)" has the same meaning as defined in Chapter 127.5 of the City
Municipal Code.
"Employee" has the same meaning as defined in Chapter 127.5 of the City Municipal Code.
"Engaged(s) in business" means the commencing, conducting, operating, managing, or carrying
on of a cannabis retailer and the exercise of corporate or franchise powers, whether done as an
owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating
from a fixed location in the City or coming into the City from an outside location to engage in such
activities. A person shall be deemed engaged in business if any of the following apply:
A. Such person or person's employee maintains a fixed place of business within the City for
the benefit or partial benefit of such person;
B. Such person or person's employee owns or leases real property within the City for
business purposes;
C. Such person or person's employee regularly maintains a stock of tangible personal
property in the City for sale in the ordinary course of business;
D. Such person or person's employee regularly conducts solicitation of business within the
City; or
E. Such person or person's employee performs work or renders services in the City.
The foregoing specified activities shall not be a limitation on the meaning of "engaged in
business".
"Evidence of doing business" means evidence such as, without limitation, use of signs, circulars,
cards or any other advertising media, including the use of internet or telephone solicitation, or
representation to a government agency or to the public that such person is engaged in a cannabis
retailer in the City.
"Fiscal year" means July 1 through June 30 of the following calendar year.
"Gross receipts" means, except as otherwise specifically provided, whether designated a sales
price, royalty, rent, commission, dividend, or other designation, the total amount (including all
receipts, cash, credits and property of any kind or nature) received or payable for sales of goods,
wares, or merchandise or for the performance of any act or service of any nature for which a
charge is made or credit allowed (whether such service, act or employment is done as part of or
in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom
on account of the cost of the property sold, the cost of materials used, labor or service costs,
interest paid or payable, losses or any other expense whatsoever. However, the following shall
be excluded from gross receipts:
A. Cash discounts where allowed and taken on sales;
B. Any tax required by law to be included in or added to the purchase price and collected
from the consumer or purchaser;
C. Such part of the sale price of any property returned by purchasers to the seller as refunded
by the seller by way of cash or credit allowances or return of refundable deposits
previously included in gross receipts;
D. Receipts derived from the occasional sale of used, obsolete, or surplus trade fixtures,
machinery, or other equipment used by the taxpayer in the regular course of the taxpayer's
business;
E. Cash value of sales, trades, or transactions between departments or units of the same
business;
F. Whenever there are included within the gross receipts amounts which reflect sales for
which credit is extended and such amount proved uncollectible in a subsequent year,
those amounts may be excluded from the gross receipts in the year they prove to be
uncollectible; provided, however, if the whole or portion of such amounts excluded as
uncollectible are subsequently collected they shall be included in the amount of gross
receipts for the period when they are recovered; and
G. Receipts of refundable deposits, except that such deposits when forfeited and taken into
income of the business shall not be excluded when in excess of one dollar.
"Manager" has the same meaning as defined in Chapter 127.6 of the City Municipal Code.
"Marijuana" means "cannabis" as that term is defined in this Chapter 127.6.
"MAUCRSA" has the same meaning as defined in Chapter 127.5 of the City Municipal Code.
"Medicinal cannabis" or "medicinal cannabis product" means cannabis or a cannabis product for
use by a qualified patient.
"Owner" has the same meaning as defined in Chapter 127.5 of the City Municipal Code.
"Patient" or "qualified patient' has the same meaning as defined in Chapter 127.5 of the City
Municipal Code.
"Person" has the same meaning as defined in Chapter 127.5 of the City Municipal Code.
"Person with an identification card" has the same meaning as defined in Chapter 127.5 of the City
Municipal Code.
"Sale" means any sale, exchange, or barter or other transaction for any consideration.
"State" means the State of California.
"Tax Administrator" means the means the Chief Executive Officer of the City of Baldwin Park or
his or her designee(s).
127.6.04: Tax Imposed
A. There is established and imposed upon each person who is engaged in business as a
cannabis retailer an annual Cannabis Retailer Tax at the rates set forth in this Chapter
127.6. Such Tax is payable regardless of whether the business is operating lawfully in
the City or unlawfully. The City's acceptance of a Cannabis Retailer Tax payment from a
cannabis retailer operating illegally shall not constitute the City's approval or consent to
such illegal operations.
B. Medicinal Retailers. The Cannabis Retailer Tax upon every person who engages in
business as a retailer of medicinal cannabis or medicinal cannabis products shall be at
the following annual rate:
1. The tax rate upon the effective date of this Chapter 127.6 shall be one-half percent
(0.5%) of the gross receipts derived from the retail sale of medicinal cannabis or
medicinal cannabis products. Such tax rate may Increase or decrease by
ordinance adopted by the City Council but shall not exceed the maximum tax rate
of five percent (5%) without voter approval.
C, Adult -use Retailers. The Cannabis Retailer Tax upon every person who engages in
business as a retailer of adult -use cannabis or adult -use cannabis products shall be at the
following annual rate:
The tax rate upon the effective date of this Chapter 127.6 shall be four percent
(4%) of the gross receipts derived from the retail sale of adult -use cannabis or
adult -use cannabis products. Such tax rate may increase or decrease by
ordinance adopted by the City Council but shall not exceed the maximum tax rate
of five percent (5%) without voter approval.
127.6.06: Exemptions from the Tax
This Chapter 127.6 shall not apply to personal use of cannabis that is specifically exempted from
State licensing requirements and that meets the definition of personal use or equivalent
terminology under State law.
127.6.06: Reporting and Remittance of Tax
The Cannabis Retailer Tax imposed by this Chapter 127.E shall be imposed on a fiscal year basis
and shall be due and payable in quarterly installments as follows:
A. The owner(s) or manager(s) of each cannabis retailer shall, on or before the last day of
the month following the close of each fiscal year quarter, prepare and submit a tax
statement on the form prescribed by the Tax Administrator and remit to the Tax
Administrator the Tax due. The Tax due shall be no less than the quarterly installment
due, but the taxpayer may prepay any amount of Tax at any time.
B. Tax statements and payments for all outstanding Taxes owed the City are immediately
due to the Tax Administrator upon cessation of a cannabis retailer for any reason.
127.6.07: Nonpayment of Cannabis Retailer Tax; Penalties and Interest Established by
Ordinance
A. Any person who fails or refuses to pay any Cannabis Retailer Tax required to be paid
pursuant to this Chapter 127.6 on or before the due date shall pay penalties and interest
as follows:
1. A penalty equal to ten percent (10%) of the amount of the Tax, in addition to the
amount of the Tax, plus interest on the unpaid tax calculated from the due date of
the Tax at the rate of one percent (1%) per month.
2. If the Tax remains unpaid for a period exceeding three (3) calendar months beyond
the due date, an additional penalty equal to twenty-five percent (25%) of the
amount of the Tax, plus interest at the rate of one percent (1%) per month on the
unpaid tax and on the unpaid penalties.
3. These penalty provisions shall not be construed to preclude or limit the
enforcement of the penal provisions of this Chapter 127.6 or the Code.
B, Whenever a check or electronic payment is submitted in payment of a Cannabis Retailer
Tax and the payment is subsequently returned unpaid by the bank, the taxpayer will be
liable for the Tax amount due plus any fees, penalties, and interest as provided for in this
Chapter 127.6, and any other amount allowed under State law.
127.6.08: Administration of the Tax
A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and
perform the duties required by this Chapter 127.6.
B. For purposes of administration and enforcement of this Chapter 127.6 generally, the Tax
Administrator may from time to time promulgate such administrative interpretations, rules,
and procedures consistent with the purpose, intent, and express terms of this Chapter
127.6 as he or she deems reasonably necessary to implement or clarify such provisions
or aid in enforcement, including but not limited to:
Provide forms to all taxpayers for the reporting of the Tax;
2. Provide information to any taxpayer concerning the provisions of this Chapter
127.6;
3. Receive and record all taxes remitted to the City as provided in this Chapter 127.6;
4. Maintain records of taxpayer reports and taxes collected pursuant to this Chapter
127.6;
5. Assess penalties and interest to taxpayers pursuant to this Chapter 127.6; and
6. Determine amounts owed and enforce collection pursuant to this Chapter 127.6.
127.6.09: Appeal Procedure
Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of
tax, interest, penalties, and fees, if any, due under this Chapter 127.6 may appeal to the City
Council by filing a notice of appeal with the City Clerk within forty-five (45) calendar days of the
serving or mailing of the determination of Tax due. The City Clerk, or his or her designee, shall
fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give
notice in writing to such cannabis retailer at the last known place of address. The finding of the
City Council shall be a final administrative decision, subject to judicial review and remedies, and
shall be served upon the appellant in the manner prescribed by this Chapter 127.6 for service of
notice of hearing. Any amount found to be due shall be immediately due and payable upon the
service of the notice.
127.6.10: Constitutionality and Legality
This Tax is intended to be applied in a manner consistent with the United States and State
Constitutions and State law. None of the Tax provided for by this Chapter 127.E shall be applied
in a manner that causes an undue burden upon interstate commerce, a violation of the equal
protection or due process clauses of the Constitutions of the United States or the State, or a
violation of any other provision of the State Constitution or State law. If a person believes that
the Tax, as applied to him or her, is impermissible under applicable law, he or she may request
that the Tax Administrator release him or her from the obligation to pay the impermissible portion
of the Tax.
127.6.11: Apportionment
If a cannabis retailer subject to the Tax is operating both within and outside the City, it is the intent
of the City to apply the Cannabis Retailer Tax so that the measure of the Tax fairly reflects the
proportion of the taxed activity actually carried on in the City. To the extent federal or State law
requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said
apportionment on his or her tax return. The Tax Administrator may promulgate administrative
procedures for apportionment as he or she finds reasonably useful or necessary.
127.6.12: Audit and Examination of Records and Equipment
A. For the purpose of ascertaining the amount of Cannabis Retailer Tax owed or verifying
any representations made by any taxpayer to the City in support of his or her tax
calculation, the Tax Administrator shall have the power to inspect any location where
commercial cannabis activity occurs and to audit and examine all books and records
(including, but not limited to bookkeeping records, State and federal income tax returns,
and other records relating to the gross receipts of the business) of owners and managers
of a cannabis retailer. In conducting such investigation, the Tax Administrator shall have
the power to inspect any equipment, such as computers or point of sale machines, that
may contain such records.
B. It shall be the duty of every person liable for the collection and payment to the City of any
Tax imposed by this Chapter 127.6 to keep and preserve, for a period of at least seven
(7) years, all records as may be necessary to determine the amount of such Tax as he or
she may have been liable for the collection of and payment to the City, which records the
Tax Administrator shall have the right to inspect at all reasonable times.
127.6.13: Payment of Tax Does not Authorize Unlawful Conduct
A. The payment of a Cannabis Retailer Tax required by this Chapter 127.6, and its
acceptance by the City, shall not entitle any person to operate as a cannabis retailer unless
the person has complied with all of the requirements of the Code, MAUCRSA, and all
other applicable State laws.
B. No Tax paid under the provisions of this Chapter 127.6 shall be construed as authorizing
the conduct or continuance of any illegal or unlawful business, or any business in violation
of any local or State law.
C. Nothing in this Chapter,127.6 shall be construed as in conflict with State or federal law.
D. It shall be the responsibility of the owners and managers of a cannabis retailer to ensure
that the cannabis retailer is, at all times, operating in a manner compliant with the
protection of public health, safety, and community standards, including all applicable State
and local laws and regulations, including any subsequently enacted State or local law or
regulatory, licensing, or certification standards or requirements, and any specific,
additional operating procedures or requirements, which may be imposed as conditions of
approval of any State or City license or permit.
127.6.14: Other Licenses, Permits, Taxes, Fees, or Charges
Nothing contained in this Chapter 127.E shall be deemed to repeal, amend, be in lieu of, replace
or in any way affect any requirements for any permit or license required by, under or by virtue of
any other provision of this Code or any other ordinance or resolution of the City Council, nor be
deemed to repeal, amend, be In lieu of, replace or in any way affect any tax, fee, or other charge
Imposed, assessed or required by, under or by virtue of any other provision of the Code or any
other ordinance or resolution of the City Council. Any references made or contained in any other
provision of the Code to any licenses, license taxes, fees, or charges, or to any schedule of license
fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of
license fees, provided for in other provisions of this Code.
127.6.16: Deficiency Determinations
If the Tax Administrator is not reasonably satisfied that any statement filed as required under the
provisions of this Chapter 127.6 is correct, or that the amount of tax is correctly computed, he or
she may compute and determine the amount to be paid and make a deficiency determination
upon the basis of the facts contained in the statement or upon the basis of any information in his
or her possession or that may come into his or her possession within two (2) years of the date the
tax was originally due and payable. One or more deficiency determinations of the amount of tax
due for a period or periods may be made. When a person discontinues engaging in a business,
a deficiency determination may be made at any time within two (2) years thereafter as to any
liability arising from engaging In such business whether or not a deficiency determination is issued
prior to the date the tax would otherwise be due. Whenever a deficiency determination is made,
a notice shall be given to the person concerned in the same manner as notices of assessment
are given in this Chapter 127.6.
127.6.16: Failure to Report; Nonpayment; Fraud
A. Under any of the following circumstances, the Tax Administrator may make and give
notice of an assessment of the amount of Tax owed by a person under this Chapter 127.6
at any time:
If the person has not filed a complete statement required under the provisions of
this Chapter 127.6;
2. If the person has not paid the Tax due under the provisions of this Chapter 127.6;
3. If the person has not, after demand by the Tax Administrator, filed a corrected
statement, or furnished to the Tax Administrator adequate substantiation of the
information contained in a statement already filed, or paid any additional amount
of tax due under the provisions of this Chapter 127.6; or
4. If the Tax Administrator determines that the nonpayment of any Cannabis Retailer
Tax is due to fraud, a penalty of twenty-five percent (25%) of the amount of the
Tax shall be added thereto in addition to penalties and interest otherwise stated in
this Chapter 127.6 and any other penalties allowed by law.
B. The notice of assessment shall separately set forth the amount of any Tax known by the
Tax Administrator to be due or estimated by the Tax Administrator, after consideration of
all information within the Tax Administrator's knowledge concerning the business and
activities of the person assessed, to be due under each applicable section of this Chapter
127.6 and shall include the amount of any penalties or interest accrued on each amount
to the date of the notice of assessment.
127.6.17: Tax Assessment; Notice Requirements
The notice of assessment shall be served upon the person either (1) by personal delivery; (2) by
overnight delivery by a nationally -recognized courier service, or by a deposit of the notice via
United States Postal Service Priority Mail Express (or a comparable service with another carrier
or with the United States Postal Service, should Priority Mail Express no longer be provided) with
proof of delivery, postage prepaid thereon, addressed to the person at the address of the location
of the business or to such other address as he or she shall register with the Tax Administrator for
the purpose of receiving notices provided under this Chapter 127.6; or (3) should the person have
no address registered with the Tax Administrator for such purpose, then to such person's last
known address. For the purposes of this Section 127.6.17, a service by overnight delivery shall
be deemed to have occurred one (1) calendar day following deposit with a courier and service by
United States Postal Service Priority Mail Express shall be deemed to have occurred three (3)
calendar days following deposit of the notice.
127.6.18: Tax Assessment; Hearing, Application, and Determination
Within forty-five (45) calendar days after the date of service, the person may apply in writing to
the Tax Administrator for a hearing on the assessment. If application for a hearing before the City
is not made within the time herein prescribed, the Tax assessed by the Tax Administrator shall
be a final administrative decision, subject to judicial review. Within thirty (30) calendar days of
the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be
set for hearing before him or her no later than thirty (30) calendar days after the receipt of the
application, unless a later date is agreed to by the Tax Administrator and the person requesting
the hearing. Notice of such hearing shall be given by the Tax Administrator to the person
requesting such hearing not later than fifteen (15) calendar days prior to such hearing. At such
hearing said applicant may appear and offer evidence why the assessment as made by the Tax
Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax
Administrator shall determine and reassess the proper tax to be charged and shall give written
notice to the person in the manner prescribed in this Chapter 127.6 for giving notice of
assessment.
127.6.19: Relief from Taxes; Disaster Relief
A. If a cannabis retailer is unable to comply with any Tax requirement due to a disaster, the
cannabis retailer may notify the Tax Administrator of this inability to comply and request
relief from the tax requirement. A request for relief must clearly indicate why relief is
requested, the time period for which the relief is requested, and the reason relief is needed
for the specific amount of time.
B. To obtain relief, the cannabis retailer agrees to grant the Tax Administrator access to the
location where the cannabis retailer has been impacted due to a disaster.
C. The Tax Administrator, in his or her reasonable discretion, may provide relief from the
Cannabis Retailer Tax requirement for cannabis retailer whose operations have been
impacted by a disaster if such tax liability does not exceed $100,000.00, If such Tax
liability is $100,001,00 or more, than such relief shall only be approved by the City Council.
D. Temporary relief from the Cannabis Retailer Tax may be granted for a reasonable amount
of time as determined by the Tax Administrator or the City Council, as applicable in order
to allow the cannabis retailer time to recover from the disaster.
E. The Tax Administrator or City Council, as applicable may require that certain conditions
be followed in order for a cannabis retailer to receive temporary relief from the Cannabis
Retailer Tax requirement.
F. For purposes of this Section 127.6,19, "disaster" means, including but not limited to,
natural disasters (such as, but not limited to, fires, explosions, earthquakes, drought, tidal
waves, and floods); war, hostilities, invasion, act of foreign enemies, mobilization,
requisition, or embargo; rebellion, revolution, insurrection, military or usurped power, or
civil war; riot, commotion, strikes, go slows, lock outs, or disorder; a pandemic; or acts or
threats of terrorism.
127.6.20: Conviction for Violation; Tax Not Waived
The conviction and punishment of any person for failure to pay the required Cannabis Retailer
Tax shall not excuse or exempt such person from any civil action for the Tax debt unpaid at the
time of such conviction. No civil action shall prevent a criminal prosecution for any violation of
the provisions of this Chapter 127.6 or of any State law requiring the payment of all taxes.
127.6.21: Violation Deemed Misdemeanor
Each and every material violation of the provisions of this Chapter 127.E may be prosecuted as a
misdemeanor and upon conviction be subject to a fine not to exceed one thousand dollars
($1,000.00) or imprisonment in the County jail for a period of not more than six (6) months, or by
both such fine and imprisonment. Each day a material violation is committed or permitted to
continue shall constitute a separate offense.
127.6.22: Remedies Cumulative and Not Exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
SECTION 7. Chapter 127 of Title XI (Business Regulations) of the City Municipal Code
is hereby amended by being retitled from "Medical and Adult Use Commercial Cannabis" to
"Medical and Adult Use Commercial Cannabis Production".
SECTION 8. Section 127.01 (Purpose) of Chapter 127 (Medical and Adult Use
Commercial Cannabis) of Title XI (Business Regulations) of the City Municipal Code is hereby
amended to read as follows:
A. Regulation. The purpose of this article is to regulate all commercial cannabis production
activity . in the CITY, as defined in Section 26000 of the California Business and
Professions Code, to the extent authorized by state law and in a manner designed to
minimize negative impact on the CITY, and to promote the health, safety, morals, and
general welfare of residents and businesses within the CITY.
B. Specific Authority. This article is further adopted and established pursuant to the specific
authority granted to the CITY in Section 7 of Article XI of the California Constitution and
Section 26000 of the California Business and Professions Code, These regulations shall
govern all commercial cannabis production activity that occurs within the jurisdiction of the
CITY,
SECTION 9. Subsection Y (Medical Cannabis Business) of Section 127.02 (Definitions)
of Chapter 127 (Medical and Adult Use Commercial Cannabis) of Title XI (Business Regulations)
of the City Municipal Code is hereby amended to read as follows:
Y. "Medical Cannabis Business" means any person engaged in commercial production
cannabis activity,
SECTION 10. Subsection DD (Permit) of Section 127.02 (Definitions) of Chapter 127
(Medical and Adult Use Commercial Cannabis) of Title XI (Business Regulations) of the City
Municipal Code is hereby amended to read as follows:
DD, "Permit" means a "cannabis permit" that authorizes an entity to conduct commercial
cannabis activity under this chapter.
SECTION 11. Section 127.02 (Definitions) of Chapter 127 (Medical and Adult Use
Commercial Cannabis) of Title XI (Business Regulations) of the City Municipal Code is hereby
amended by adding Subsection KK (Commercial Production Cannabis Activity) to read as follows:
KK, "Commercial Cannabis Production Activity" means all forms of commercial cannabis
activity except delivery, dispensing, and retail sale(s). "Delivery", "dispensing", and "retail
sale(s)" are defined in Chapter 127.5 of the Code.
SECTION 12, Section 127.05 (Permitted Use) of Chapter 127 (Medical and Adult Use
Commercial Cannabis) of Title XI (Business Regulations) of the City Municipal Code is hereby
amended to read as follows:
A. Permit Required, Commercial Cannabis Production Activity shall only be permitted to
operate in the CITY pursuant to the issuance of a Permit approved by the City Council or
staff designee and a business license issued by the CITY in accordance with the criteria
and procedures set forth in Chapter 127 of this Code and in compliance with the BPMC.
No land -use entitlement, permit (including building permit) approval, site plan, certificate
of occupancy, zoning clearance, or other land -use authorization for a commercial
cannabis production activity shall be granted or permitted unless it complies with the
provisions of this chapter and the applicable building standards and the BPMC. 44her"
a Genf! ist-between4he-requiFernents of another shayteis-chapter; the requiremen
of this Chapter 127 pFev"
B. Strict Compliance. All Persons who are engaged in or who are attempting to engage in
Commercial Cannabis Production Activity in any form shall do so only in strict compliance
with the terms, conditions, and restrictions of the MAUCRSA, the provisions of this
Chapter 127, and all other applicable State and CITY laws,
C. Chief Executive Officer Authorized. The Chief Executive Officer is authorized to establish
policies and procedures consistent with the intent and spirit of this Chapter concerning the
applications, the application process, the information required of Applicants, the
application procedures and the administration and procedures to be used and followed in
the application and process.
SECTION 13. The preamble of Section 127.07 (Permitted Zones -Distance and Other
Conditions for Approval) of Chapter 127 (Medical and Adult Use Commercial Cannabis) of Title
XI (Business Regulations) of the City Municipal Code is hereby amended to read as follows:
No more than 25 (twenty-five) Permits, each with a maximum of 22,000 square feet of permitted
Commercial Production Cannabis Activity may be allowed, maintained, or operated in the CITY
at any time. If there is a conflict between the requirements of this chapter and any other chapter,
the requirements of this Chapter shall prevail. Except that, for Distribution only, the maximum
square feet shall be increased from 22,000 square feet to 40,000, square feet.
SECTION 14. Subsection D (Nonconforming Use) of Section 127.07 (Permitted Zones -
Distance and Other Conditions for Approval) of Chapter 127 (Medical and Adult Use Commercial
Cannabis) of Title XI (Business Regulations) of the City Municipal Code is hereby amended to
read as follows:
D. Nonconforming Use, Any Commercial Production Cannabis Activity eF -saris
dtspensar-y established or operating in the CITY in violation of this Chapter, or the ban
established by Part 10, of Chapter 153 Section 153,120.320 of the Baldwin Park Zoning
Code, shall not be considered a lawful or permitted nonconforming use, and no
Commercial Cannabis Production Activity operating unlawfully is eligible for a Permit.
Further, any such unlawfully established Commercial Production Cannabis Activity shall
constitute a public nuisance subject to abatement by the CITY, pursuant to Chapter 95,
Section 95.09,
SECTION 16. Subsection E (Distances) of Section 127.07 (Permitted Zones -Distance
and Other Conditions for Approval) of Chapter 127 (Medical and Adult Use Commercial Cannabis)
of Title XI (Business Regulations) of the City Municipal Code is hereby amended to read as
follows:
E. Distances. All distances specified in this section shall be measured in the following
manner:
For schools, Day -Care, parks, or youth centers, the distance shall be measured in
a straight line from the subject property line to the closest property line of the lot
on which the Commercial Production Cannabis Activity is to be located without
regard to intervening structures.
2. For determining distance to residential zones, the distance shall be measured in a
straight line from the subject building to the closest dwelling unit on the lot on which
the cannabis production business is to be located without regard to intervening
structures.
SECTION 16. Section 127.08 (No Transfer or Change in Ownership or Location) of
Chapter 127 (Medical and Adult Use Commercial Cannabis) of Title XI (Business Regulations) of
the City Municipal Code is hereby amended to read as follows:
An Owner who obtains a Permit under this chapter may not sell, transfer, pledge, assign, grant
an option, or otherwise dispose of his or her ownership interest in the Commercial Cannabis
Production Activity covered by any Permit issued under this Chapter without a written request
deemed appropriate by Chief Executive Office of the CITY, or his/her designees, and City Council
approved, fully executed and effective Development Agreement,
The Licensed Premises shall only be the geographical area that is specifically and accurately
described in executed documents verifying lawful possession. No Licensee is authorized to
relocate to other areas or units within a building structure without first filing a change of location
application, paying any applicable processing fees, and obtaining approval from the City Council,
regardless of any possessory interest or right to possession to such additional space.
SECTION 17. Subsection F (Application) of Section 127.09 (Altering or Modifying
Location) of Chapter 127 (Medical and Adult Use Commercial Cannabis) of Title XI (Business
Regulations) of the City Municipal Code is hereby amended to read as follows:
F. Application, The•City Council or its designee may grant approval for the types of changes,
alterations, or modifications described herein upon the filing of an application by the
Licensee and payment of any applicable fee. The Licensee must submit all information
requested by the city council or its designee including but not limited to documents that
verify the following:
1. The Licensee will continue to have exclusive possession of the premises, as
changed, by ownership, lease, or rental agreement, and sole control of all
production; and
2. The proposed change conforms to any and all City restrictions related to the time,
manner, and place of regulation of the commercial production cannabis activity.
SECTION 18. Subsection A (No CITY Liability) of Section 127.13 (Limitations on City's
liability) of Chapter 127 (Medical and Adult Use Commercial Cannabis) of Title XI (Business
Regulations) of the City Municipal Code is hereby amended to read as follows:
A. No CITY Liability. To the fullest extent permitted by law, the CITY does not assume any
liability whatsoever, with respect to approving any Permit pursuant to this chapter or the
operation of any Commercial Production Cannabis Activity approved under to this
Chapter.
SECTION 19. Section 127.17 (Statewide Regulation) of Chapter 127 (Medical and Adult
Use Commercial Cannabis) of Title XI (Business Regulations) of the City Municipal Code is
hereby amended to read as follows:
This Chapter, and the provisions herein, shall be read consistent with any statewide regulation of
Commercial Cannabis Production Activity now and in the future. This ordinance shall govern the
conduct of a business allowed to operate a commercial cannabis production activity in the CITY.
SECTION 20. Section 127.17 (Interpretation) of Chapter 127 (Medical and Adult Use
Commercial Cannabis) of Title XI (Business Regulations) of the City Municipal Code is hereby
amended to read as follows:
The provisions of this Chapter shall be read to be consistent with State laws, this chapter, and
this Code. At no time shall a Commercial Production Cannabis Activity in compliance with state
law and this Code be deemed to be an unlawful business.
SECTION 21. Part 10 (Medical Marijuana/Cannabis Dispensaries) of Section 153.120
(Standards for Specific Land Uses and Activities) of Chapter 153 (Zoning Code) of Title XV (Land
Usage) of the City Municipal Code is hereby repealed in its entirety and amended to read as
follows:
Part 10. Cannabis Retailers
163.120.320: Intent and Purpose
The purpose of regulating cannabis retailers is to comply with California state law in a manner
designed to minimize negative impact on the City, and to promote the health, safety, morals, and
general welfare of residents and businesses within the City.
163.120.330: Use Regulations
Pursuant to the authority delegated by the State to the City under Section 26054(b) of the State
Business & Professions Code and overriding the location and design requirements contained in
Section 26054(b) of the State Business & Professions Code, cannabis retailers in the City shall
be subject to the following land use regulations:
A. Subject to the requirements of Title XI, Chapter 127.5, Cannabis Retailers, of this Code
(in particular the possession of a retail cannabis business permit) and the requirements of
Title XI, Chapter 127.6, Cannabis Retailer Tax, of this Code, cannabis retailers shall be a
land use permitted by right on property zoned Industrial (1) or Industrial -Commercial (I-C).
B. A cannabis retailer permitted pursuant Section 127.5.06 of this Code to shall not be
located on property within (1) six -hundred (600) feet of a school, daycare, or youth center
or (2) fifty (50) feet of a dwelling unit within a residential zone.
C. All distances specified in this Subpart 153,120,330 shall be measured in the following
manners:
1. For schools, day-care, youth centers, or cannabis retailers, the distance shall be
measured in a straight line from the subject property line to the closest property
line of the lot on which the cannabis retailer is to be located without regard to
intervening structures.
2. For determining distance to dwelling units within residential zones, the distance
shall be measured in a straight line from the subject building to the closest dwelling
unit on the lot on which the cannabis retailer is to be located without regard to
intervening structures.
D. A cannabis retailer permitted pursuant Section 127.5.06 of this Code or which transfers
locations pursuant to Section 127.5.12 of this Code shall not be located on property within
(1) six -hundred (600) feet of a school, day-care, or youth center, (2) fifty (50) feet of a
dwelling unit within a residential zone, or (3) two thousand (2,000) feet of another cannabis
retailer.
E. Notwithstanding any of the above requirements contained in Sub -Subparts A through C,
cannabis retailers shall be a land use permitted by right on property that is or was covered
by a development agreement entered into and approved pursuant to Chapter 127 of the
City Municipal Code prior to January 1, 2018, subject to the remaining requirements of
Title XI, Chapter 127.5, Cannabis Retailers, of this Code (in particular the possession of
a retail cannabis business permit) and the requirements of Title XI, Chapter 127.6,
Cannabis Retailer Tax, of this Code.
SECTION 22. Subpart 153,120.560 (Intent and Purpose) of Part 18 (Medical and Adult
Cannabis Cultivation, Manufacturing and Distribution) of Section 153.120 (Standards for Specific
Land Uses and Activities) of Chapter 153 (Zoning Code) of Title XV (Land Usage) of the City
Municipal Code is hereby amended to read as follows:
The purpose of regulating commercial cannabis production activity (as defined in Chapter 127 of
this Code) is to comply with California state law in a manner designed to minimize negative impact
on the CITY, and to promote the health, safety, morals, and general welfare of residents and
businesses within the CITY.
SECTION 23. Subpart 153,120.570 (Use Regulations) of Part 18 (Medical and Adult
Cannabis Cultivation, Manufacturing and Distribution) of Section 153.120 (Standards for Specific
Land Uses and Activities) of Chapter 153 (Zoning Code) of Title XV (Land Usage) of the City
Municipal Code is hereby amended to read as follows:
A. Chapter 127: Medical and Adult Use Commercial Cannabis. All commercial cannabis
production activity shall comply with all applicable provisions of Title XI, Chapter 127,
Medical and Adult Use Commercial Cannabis Production, of this code.
B. Outdoor Cultivation. Owning, leasing, occupying, or having charge or possession of any
parcel within any zoning district in the CITY to use or allow such premise to be used for
the outdoor cultivation of cannabis plants is prohibited in the CITY.
C. Development Agreement Required. Prior to operating in the CITY and as a condition of
issuance of a Permit, the applicant shall enter into a Development Agreement (as
governed by California Government Code Section 66864, et seq.) with the City setting
forth the terms and conditions under which the facility will operate that is in addition to the
requirements of Title XI, Chapter 127, including, but not limited to, public outreach and
education, community service, payment of fees and other charges as mutually agreed
upon, approval of architectural plans (including site plan, floor plan, and elevation, to
conform with manufacturing uses under the BPMC), and such other terms and conditions
that will protect and promote the public health, safety, and welfare of all persons in the
CITY.
D. Maximum Number of Commercial Cannabis Permits. No more than 25 (twenty-five)
permits issued pursuant to Title XI, Chapter 127, each with a maximum of 22,000 square
feet of permitted Commercial Cannabis Production Activity may be allowed, maintained,
or operated in the CITY at any time; except that, Dispensaries Distribution only, shall be
allowed a maximum of 40,000 square feet.
SECTION 24. The preamble of Sub -Subpart E (Security) of Subpart 153,120,670 (Use
Regulations) of Part 18 (Medical and Adult Cannabis Cultivation, Manufacturing and Distribution)
of Section 153.120 (Standards for Specific Land Uses and Activities) of Chapter 153 (Zoning
Code) of Title XV (Land Usage) of the City Municipal Code is hereby amended to read as follows:
E. Security. All security requirements set forth in Title XI, Chapter 127, Medical and Adult
Use Commercial Cannabis Production, of this code are applicable.
SECTION 25. The definition of "Characterizing flavor" in Section 126,010 (Definitions) of
Chapter 125 (Tobacco Retail Licensing) of Title XI (Business Regulations) of the City Municipal
Code is hereby amended to read as follows:
"Characterizing flavor" means a taste or aroma, other than the taste or aroma of cannabis-eK
tobacco, imparted either prior to or during consumption of a cannabis -or tobacco product or any
byproduct produced by the cannabis or tobacco product, including, but not limited to, tastes or
aromas relating to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa,
dessert, alcoholic beverage, cotton candy, herb, bubble gum, spice, or any other flavor that is
designed to mask the aroma and flavor of natural cannabis or tobacco or tobacco er-sannabis-
related products. Characterizing flavor includes flavor in any form, mixed with, or otherwise added
to, any cannabis -or tobacco product or nicotine delivery device, Including electronic smoking
devices.
SECTION 26. The definition of "Electronic smoking device" in Section 125.010
(Definitions) of Chapter 125 (Tobacco Retail Licensing) of Title XI (Business Regulations) of the
City Municipal Code is hereby amended to read as follows:
"Electronic smoking device" means any device that may be used to deliver any aerosolized or
vaporized substance to the person inhaling from the device, including, but not limited to, an e-
cigarette, e-cigar, a -pipe, or vape pen. Electronic smoking device includes any component, part,
or accessory of the devise, and also includes any substance that may be aerosolized or vaporized
by such device, whether or not the substance contains cannabis or nicotine. Electronic smoking
device does not include any product that has been approved by the United States Food and Drug
Administration for sale as a tobacco cessation product or for other therapeutic purposes where
such product is marketed and sold solely for such an approved purpose.
SECTION 27. The definition of "Flavored cannabis or tobacco product" in Section 126.010
(Definitions) of Chapter 125 (Tobacco Retail Licensing) of Title XI (Business Regulations) of the
City Municipal Code is hereby amended to read as follows:
"Flavored caRRabis-cr tobacco product" means any tobacco orcannabis product, which imparts
a characterizing flavor. There shall be a rebuttable presumption that a tobacco ar-cannabis
product is a flavored tobacco er-cannabis product if a tobacco OF Gan retailer or any
employee or agent of a tobacco retailer has: (i) made a public statement or claim that the tobacco
or -cannabis product imparts a characterizing flavor; (ii) used text and/or images on the caAnabis
er tobacco retail product's labeling or retail packaging to explicitly or implicitly indicate that the
cannabis-er tobacco product imparts a characterizing flavor; or (III) taken action directed to
consumers that would be reasonably expected to cause consumers to believe the cannabis-e
tobacco product imparts a characterizing flavor_
SECTION 28. The definition of "Tobacco or Cannabis paraphernalia" in Section 125.010
(Definitions) of Chapter 125 (Tobacco Retail Licensing) of Title XI (Business Regulations) of the
City Municipal Code is hereby amended to read as follows:
"Tobacco 9WQanFva-bis paraphernalia" means any item designed or marketed for the consumption,
use, or preparation of cannab"F tobacco products.
SECTION 29. The definition of "Tobacco or Cannabis product" in Section 125.010
(Definitions) of Chapter 125 (Tobacco Retail Licensing) of Title XI (Business Regulations) of the
City Municipal Code is hereby amended to read as follows:
"Tobacco or-Gannabis product" means:
1, any product containing, made, or derived from eannabis; tobacco or nicotine that is
intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved,
inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to,
cigarettes, edibles, cigars, little cigars, chewing tobacco, pipe tobacco, and snuff;
2. any electronic smoking device that delivers eannabi"F nicotine eK and other substances
to the person inhaling from the device, including, but not limited to an electronic device,
cigarette, electronic cigar, electronic pipe; or
3. any component, part, or accessory intended or reasonably expected to be used with a
tobacco srcannabis product, whether or not sold separately or any of these contains
cannabis; tobacco or nicotine.
"Tobacco product" does not include any product that has been approved by the United States
Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic
purposes where such product is marketed and sold solely for such an approved purpose.
SECTION 30. The definition of "Tobacco or Cannabis retailer" in Section 125.010
(Definitions) of Chapter 125 (Tobacco Retail Licensing) of Title XI (Business Regulations) of the
City Municipal Code is hereby amended to read as follows:
"Tobacco er-Gannabis retailer" means any person who sells from a retail establishment, offers for
sale from a retail establishment, or does or offers to exchange for any form of consideration,
tobacco, tobacco products, or tobacco paraphernalia from a retail establishment. "Tobacco
retailing" shall mean the doing of any of these things. This definition is without regard to the
quantity of cannabis er tobacco products or eannabis-er tobacco paraphernalia sold, offered for
sale, exchanged, or offered for exchange.
SECTION 31. Subsection H of Section 125.020 (Requirements and Prohibitions) of
Chapter 125 (Tobacco Retail Licensing) of Title XI (Business Regulations) of the City Municipal
Code is hereby amended to read as follows:
H. No tobacco ar-cannabis retailer shall sell or offer for sale or possess with the intent to sell
or offer for retail sale in the City of Baldwin Park, any flavored roannabis e flavored tobacco
product or any component, part, or accessory intended to impart or imparting a
characterizing flavor in any form, to any sannabi6 9 tobacco product or nicotine OF
cannabis delivery device, including electronic smoking devices. There shall be a
rebuttable presumption that a saRAabis-ef tobacco product is a flavored cannabis -or
tobacco product if a sapriabis tobacco retailer or any employee or agent of a cannabis er
tobacco retailer has:
made a public statement or claim that the cannabis-er tobacco product imparts a
characterizing flavor;
2. used text and/or images on the saRAable- tobacco product's retail labeling or
retail packaging to explicitly or implicitly indicate that the sa;4Aabis-ex tobacco
product imparts a characterizing flavor; or
3. taken action directed to consumers in the retail business that would be reasonably
expected to cause consumers to believe the saAnabis-sr tobacco product imparts
a characterizing flavor.
SECTION 32. Categorically Exempt from CEQA. The People of the City find that the
actions contemplated by this Measure, including the issuance of retail cannabis business permits,
are categorically exempt from the California Environmental Quality Act ("CEQA') under Section
15060(c)(2) and Section 15060(c)(3) of Title 14 of the State Code of Regulations and the holding
by the State Supreme Court in Tuolumne Jobs & Small Business Alliance v. Superior Court (2014)
59 Cal.4th 1029. Further, the People of the City find that pursuant to Part 10 of Section 153.120
of Chapter 163 of Title XV of the City Municipal Code as codified by this Measure, cannabis
retailers are a use permitted by right in certain zoning districts within the City. As permitted in
those zoning districts, cannabis retailers are similar to already existing permitted general uses in
those zoning districts with the only difference being the type of product being delivered or sold.
SECTION 33. Conflicting Measures. The People of the City find and declare that the
provisions of this Measure relating to the regulation and taxation of cannabis retail sales in the
City may conflict with one or more provisions of other initiative measures. It is the intent of the
People that if this Measure receives a greater number of affirmative votes than a conflicting
measure at the same election, this Measure shall prevail in its entirety over a conflicting measure.
SECTION 34, Inconsistencies. Any provision of the City Municipal Code or appendices
thereto inconsistent with the provisions of this Measure, to the extent of such inconsistencies and
no further, is hereby repealed or modified to that extent necessary to affect the provisions of this
Measure.
SECTION 36. Severability. If any provision, section, paragraph, sentence, phrase, or
word of this Measure is rendered or declared invalid, illegal, or unconstitutional by any final action
in a court of competent jurisdiction or by reason or any preemptive legislation, such
unconstitutionality illegality or invalidity shall only affect such provision, section, paragraph,
sentence, phrase, or word and shall not affect or impair any remaining provisions, sections,
paragraphs, sentences, phrases, or words, or the application of this Measure to any other person
or circumstance, and to that end, the provisions hereof are severable. It is hereby declared to be
the intention of the People of the City that that this Measure would have been adopted had such
unconstitutional illegal or invalid provision, section, paragraph, sentence, phrase, or word not
been included herein.
SECTION 36, Liberal Construction. This Measure is an exercise of the initiative power of
the People of the City to provide for safe and regulated access to cannabis and cannabis products,
and shall be liberally construed to effectuate that purpose.
SECTION 37. Legal Defense. If approved by a simple majority of voters, and thereafter
challenged in court of competent jurisdiction, the City shall defend this Measure in such court of
competent jurisdiction. The People of the City by approving this Measure by a simple majority of
voters hereby declare that the proponent(s) of this Measure have a direct and personal stake in
defending this Measure from constitutional or statutory challenges to this Measure's validity or
implementation. In the event the City fails to defend this Measure, or the City fails to appeal an
adverse judgment against this Measure, in whole or in part, in any court of competent jurisdiction,
this Measure's proponent(s) shall be entitled to assert his, her, or their direct personal stake by
defending this Measure's validity and implementation in any court of competent jurisdiction and
shall be empowered by the People through this Measure to act as agents of the People of the
City, and the City shall indemnify the proponent(s) for reasonable attorneys' fees,
SECTION 38. Effective Date, This Measure shall be in full force and effect upon the tenth
day following certification by the City Council of the election returns indicating passage of this
Measure by a majority of the voters casting votes on this Measure.
SECTION 39. Amendment. After three -hundred -sixty-five (365) days following the
effective date of this Measure, the City Council may, pursuant to the procedures set forth in the
State Government Code and the City Municipal Code and without prior approval of the electorate,
amend Section 127.5.07 of the City Municipal Code enacted by this Measure, by the adoption or
amendment of one or more ordinances to provide for the issuance retail cannabis business
permits, provided that such ordinance or amendment is adopted by a two-thirds vote of the entire
membership of the City Council and meets the minimum standards set forth in Subsection A of
Section 127.5.07 of the City Municipal Code.