HomeMy WebLinkAboutORD 1501AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
BALDWIN PARK, CALIFORNIA, RENUMBERING
CHAPTER 128 OF THE BALDWIN PARK MUNICIPAL
CODE, AMENDING CHAPTER 127 OF THE BALDWIN
PARK MUNICIPAL CODE RELATING TO COMMERCIAL
CANNABIS PRODUCTION, AND CODIFYING MEASURE
BP ("BALDWIN PARK MARIJUANA RETAIL SALES
REGULATION AND TAXATION MEASURE")
WHEREAS, at the November 8, 2022 General Municipal Election, a majority of Baldwin
Park voters approved Measure BP, "The Baldwin Park Marijuana Retail Sales and
Taxation Measure ("Measure BP") and
WHEREAS, Measure BP contains (1) a statement of Purpose of Intent and (2) findings,
which are incorporated in this Ordinance by this reference as if fully set forth herein; and
WHEREAS, as an initiative measure, the text of Measure BP cannot be altered except by
a vote of the people, yet for the convenience of regulating businesses under Measure BP
and providing such businesses and the public notice of those regulations and the
convenience of finding them in the Baldwin Park Municipal Code ("BPMC"), the City
Council desires to codify them in their unaltered form in the BPMC with related
enactments and to renumber another section of the BPMC so that all cannabis regulations
are found in the same section of the Code; and
WHEREAS, although Measure BP regulates non -retail or cannabis production
businesses in some respects, it does not regulate them in every respect; therefore, the
City Council desires to adopt some clarifications to the BPMC so that it is clear how the
existing Council -enacted bodies of law regulating cannabis production relate to Measure
BP.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The recitals above are true and correct and incorporated herein by
reference.
SECTION 2. Chapter 128 of the Municipal Code (Rental Rate Increases) shall be
renumbered as Chapter 117 and its sections renumbered accordingly.
SECTION 3. Chapter 127 of the Baldwin Park Municipal Code is hereby amended to
read as follows:
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Section
127.01 Purpose
127.02 Definitions
127.03 Relationship to other laws
127.04 Outdoor cultivation
127.05 Permitted use
127.06 Development agreement required
127.07 Permitted zones; distance and other conditions for approval
127.08 No transfer or change in ownership or location
127.09 Changing, altering, or modifying licensed premises
127.10 Grounds for denial of permit; additional conditions imposed
127.11 Security
127.12 Fees and charges
127.13 Limitations on city's liability
127.14 Inspections
127.15 Public nuisance prohibited
127.16 Appeals
127.17 Statewide regulation
127.18 Interpretation
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§ 127.01 PURPOSE.
(A) Regulation. The purpose of this chapter is to regulate all commercial cannabis
production activity in the City of Baldwin Park, as defined in § 26000 et seq. of the Cal.
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. This chapter
regulates commercial cannabis production activity. Chapter 128 regulates retail
commercial cannabis activity.
(B) Specific Authority. This chapter is further adopted and established pursuant to
the specific authority granted to the city in § 7 of Art. Xl of the Cal. Constitution and §
26000 of the Cal. Business and Professions Code. These regulations shall govern all
commercial cannabis activity that occurs within the jurisdiction of the city.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.02 DEFINITIONS.
Unless otherwise defined herein, the terms in this chapter shall have the same
meaning as set forth in the MAUCRSA ("Medicinal and Adult -Use Cannabis Regulation
and Safety Act") and any rules promulgated under it. In addition, the following terms
shall be defined as follows:
ADULT -USE CANNABIS. The use of cannabis for recreational purposes as
distinguished from cannabis for medicinal purposes.
ADULT -USE CANNABIS LICENSEE. Has the same meaning as that term A -
LICENSEE as defined by § 26001(b) of the Cal. Business and Professions Code.
APPLICANT. Has the same meaning as that term is defined by § 26001(d) of the Cal.
Business and Professions Code.
CANNABIS. Has the same meaning as that term is defined by § 26001(f) of the Cal.
Business and Professions Code.
CANNABIS BUSINESS has the same meaning as defined in Chapter 128 of the
Municipal Code.
CITY. The City of Baldwin Park, California.
CHIEF EXECUTIVE OFFICER. The Chief Executive Officer of the city or a duly
authorized designee.
CODE. The Baldwin Park Municipal Code or the BPMC.
COMMERCIAL CANNABIS ACTIVITY. Has the same meaning as that term is
defined by § 26001(1) of the Cal. Business and Professions Code, including the
exclusion in § 19319 of the Cal. Business and Professions Code.
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COMMERCIAL CANNABIS PRODUCTION ACTIVITY means all forms of commercial
cannabis activity except delivery, dispensing, and retail sale(s). "Delivery," dispensing,"
and "retail sales" are defined in Chapter 128 of the Code.
CULTIVATION SITE. Has the same meaning as that term is defined by § 26001(n) of
the Cal. Business and Professions Code.
DAY-CARE. Any child day care facility other than a family day care home and
includes infant centers, preschools, extended day care facilities, and school -age child
care centers.
DEVELOPMENT AGREEMENT means commercial cannabis agreement.
DELIVERY has the same meaning as defined in Chapter 128 of the Municipal Code.
DISPENSING has the same meaning as defined in Chapter 128 of the Municipal
Code.
DISTRIBUTION. Has the same meaning as that term is defined by § 26001(t) of the
Cal. Business and Professions Code.
DWELLING UNIT. Any building or portion thereof designed for living and sleeping
purposes that contains independent cooking and sanitation facilities.
ENCLOSED LOCKED STRUCTURE. A structure that: (1) does not allow for the
visibility of the interior from the outside; (2) is secured with a non-residential lock; (3) is
completely surrounded on all sides by a wall (i.e., fully enclosed); and (4) is roofed.
ENCLOSED LOCKED STRUCTURES may include greenhouses, provided that only the
roof of the greenhouse is made of transparent glass. All enclosed locked structures
shall comply with the city and state building codes, city and state fire codes, and all
other applicable laws.
GOOD CAUSE. For purposes of denying an initial license under this chapter, for
revoking a permit, or for denying a permit renewal or reinstatement, means at least one
of the following:
(1) The applicant has not obtained approval by the City Council of a development
agreement setting forth the general terms for the operation of a business under this
chapter or a licensee breaches the terms of an applicable development agreement;
(2) The applicant or licensee has violated any of the terms, conditions, or
provisions of this chapter, state law, any regulations promulgated under state law, any
applicable local ordinances or rules, or any special terms or conditions placed upon its
state license, local license, or permit;
(3) The licensed premises has been or is operated in a manner that adversely
affects the public health, safety, or welfare of the immediate neighborhood in which the
establishment is located;
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(4) The applicant or licensee has knowingly made false statements,
misrepresentations or material omissions on an application form, renewal form, or any
other document submitted to the city;
(5) The applicant or licensee's criminal history does not indicate that the applicant
or licensee is of good moral character; or the applicant or licensee has been convicted
of an offense that is substantially related to the qualifications, functions, or duties of the
business or profession for which the application is made, except that, if the local
licensing authority has issued a local license to the applicant or licensee, the city shall
not consider any criminal history of the applicant or licensee that was disclosed to or
discovered by the local licensing authority prior to the issuance of the local license and
is confirmed by the applicant. For any criminal history that was not disclosed to or
discovered by the local licensing authority prior to the issuance of the local license or
that arose after the issuance of the local license, the city shall conduct a thorough
review of the nature of the crime, conviction, circumstances, and evidence of
rehabilitation of the applicant or licensee and shall evaluate the suitability of the
applicant or licensee to be issued a permit based on the evidence found through the
review. In determining which offenses are substantially related to the qualifications,
functions, or duties of the business or profession for which the application is made, the
city shall consider the factors as set forth in § 26057(b)(4) of the Cal. Business and
Professions Code;
(6) The applicant or licensee is employing or allowing to volunteer any person
whose criminal history indicates that person is not of good moral character;
(7) The applicant or licensee fails to allow inspection of the security recordings,
activity logs, or business records of the licensed premises by city officials; or
(8) An applicant or licensee is a licensed physician providing written
recommendations to patients for cannabis.
GOOD MORAL CHARACTER. Having a personal history that demonstrates the
propensity to serve the public in the licensed area in a manner that reflects openness,
honesty, fairness, and respect for the rights of others and for the law. In determining
good moral character, the following standards apply:
(1) A judgment of guilt in a criminal prosecution or a judgment in a civil action shall
not be used, in and of itself, as proof of an individual's lack of good moral character.
Such judgment may be used as evidence in the determination, and when so used, the
individual shall be notified and shall be permitted to rebut the evidence by showing that,
at the current time, he or she has the ability to and is likely to serve the public in a fair,
honest and open manner, that he or she is rehabilitated, or that the substance of the
former offense is not substantially related to the occupation or profession for which he
or she seeks to be licensed.
(2) Notwithstanding Chapter 2 of Division 1.5 of the Cal. Business and Professions
Code, a prior conviction where the sentence, including any term of probation,
incarceration, or supervised release is completed for possession of, possession for sale,
sale, manufacture, transportation, or cultivation of a controlled substance, is not
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considered substantially related, and shall not be the sole ground for denial of a local
license, except that any of the following convictions shall be deemed substantially
related and may be the sole grounds for denying a local license or permit:
(a) A felony conviction for hiring, employing, or using a minor in transporting,
carrying, selling, giving away, preparing for sale, or peddling, any controlled substance;
(b) A felony conviction for selling, offering to sell, furnishing, offering to furnish,
administering, or giving any controlled substance to a minor;
(c) A felony conviction for drug trafficking with enhancements pursuant to
§ 11370.4 or § 11379.8 of the Cal. Health and Safety Code; or
(d) Conviction for any controlled substance felony subsequent to issuance of a
permit shall be grounds for revocation of a permit or denial of the renewal of a permit.
IMMATURE MARIJUANA PLANT A marijuana plant, whether male or female, that
has not yet flowered and that does not yet have buds that are readily observed by
unaided visual examination. This is distinguished from a "mature" plant, which has
flowered and has buds.
LICENSE. A permit to operate a commercial cannabis business unless clearly
indicated by context that "LICENSE" means City business license.
LICENSED PREMISES. The designated area on a single or immediately adjoining
parcel(s), as identified by valid street address and Assessor Parcel Number, specified in
an application for a permit under this chapter, which is owned or in the possession of
the applicant or licensee and within which the applicant or licensee is applying for
authorization to cultivate, manufacture, distribute, test, or is applying for multiple
permitted uses, in accordance with the provisions of this chapter, the MAUCRSA, any
development agreement approved by City Council, and any rules adopted pursuant
thereto.
LICENSEE. A person who has been issued a commercial cannabis business permit
under this chapter for a licensed premises.
LIMITED ACCESS AREA. A building, room, or other area that is part of the licensed
premises whose access is limited to certain authorized persons.
MANUFACTURE. To compound, blend, extract, infuse, or otherwise make or prepare
a cannabis product.
MANUFACTURER. A licensee that conducts the production, preparation,
propagation, or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of chemical synthesis, or
by a combination of extraction and chemical synthesis at a fixed location that packages
or repackages cannabis or cannabis products or labels or relabels its container.
MEDICINAL AND ADULT -USE CANNABIS REGULATION AND SAFETYACT or
MAUCRSA. Means Division 10 of the Cal. Business and Professions Code.
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MEDICINAL CANNABIS. Has the same meaning as that term is defined by §
26001(ak) of the Cal. Business and Professions Code.
MEDICAL CANNABIS BUSINESS means any person engaged in commercial
production activity.
OUTDOORS. Any location within the city that is not within an enclosed structure.
OWNER. Any of the following, pursuant to § 26001(ao) of the Cal. Business and
Professions Code:
(1) A person with an aggregate ownership interest of 20% or more in the person
applying for a license or a licensee, unless the interest is solely a security, lien, or
encumbrance.
(2) The Chief Executive Officer of a nonprofit or other entity.
(3) A member of the Board of Directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management
of the person applying for a license.
PERMIT means a cannabis permit that authorizes an entity to conduct commercial
cannabis activity under this chapter.
PERSON. Has the same meaning as that term is defined by § 26001(ag) of the Cal.
Business and Professions Code.
PHYSICIAN. An individual who possesses a license in good standing to practice
medicine or osteopathy from the State of California.
RETAIL SALES has the same meaning as defined in Chapter 128 of the Municipal
Code.
SOCIAL EQUITYAPPLICANT has the same meaning as that term is defined in
Chapter 128 of the Municipal Code.
STATE LAW. Means and includes Cal. Health and Safety Code, § 11362.5
(Compassionate Use Act of 1996); Cal. Health and Safety Code §§ 11362.7 to
11362.83 (Medical Marijuana Program Act); the California Attorney General's
Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use
issued in August, 2008, as such guidelines may be revised from time to time by action
of the Attorney General; MAUCRSA, and all other applicable laws of the State of
California.
STATE LICENSE. Has the same meaning as that term is defined by § 26001(a) of the
Cal. Business and Professions Code.
STATE LICENSING AUTHORITY. Shall mean the Bureau of Cannabis Control within
the State Department of Consumer Affairs, the State Department of Public Health, State
Department of Food and Agriculture, or any other state agency responsible for the
issuance, renewal, or reinstatement of a state license issued pursuant to Division 10 of
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the Cal. Business and Professions Code or any state agency authorized to take
disciplinary action against such local license.
WRITTEN DOCUMENTATION. Shall have the meaning set forth in § 11362.7(i) of the
Cal. Health and Safety Code.
YOUTH CENTER. Any public or private facility that is primarily used to host social
activities for minors, including, but not limited to, social service teenage club facilities,
video arcades, or similar amusement park facilities.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.03 RELATIONSHIP TO OTHER LAWS.
Except as otherwise specifically provided herein, this chapter incorporates the
requirements and procedures set forth in Division 10 (commencing with § 26000) of the
Cal. Business and Professions Code. In the event of a conflict between the provisions of
this chapter and state statutes or regulations, state law shall control.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.04 OUTDOOR CULTIVATION.
It is hereby declared to be unlawful, a public nuisance, and a violation of this chapter
for any person owning, leasing, occupying, or having charge or possession of any
parcel within any zoning district in the city to use or allow such premises to be used for
the outdoor cultivation of cannabis plants.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.05 PERMITTED USE.
(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.
(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.
(D) Delivery. Delivery within the City by commercial cannabis production
businesses is prohibited.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.06 DEVELOPMENT AGREEMENT REQUIRED.
Prior to operating in the city and as a condition of issuance of a permit, the applicant
for a commercial cannabis production business shall enter into a development
agreement with the city setting forth the terms and conditions under which the facility
will operate that is in addition to the requirements of this chapter, 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.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.07 PERMITTED ZONES; DISTANCE AND OTHER CONDITIONS FOR
APPROVAL.
Maximum number of commercial cannabis permits. The maximum number of
commercial cannabis permits shall be established by separate resolution of the City
Council. A maximum of 22,000 square feet of permitted commercial cannabis activity
may be allowed, maintained, or operated in the city at any time; except that, distribution
only, shall be allowed a maximum of 40,000 square feet."
(A) Manufacturing site.
(1) No manufacturing shall be located within 600 feet of a school, daycare, or youth
center, or within 50 feet of a dwelling unit within a residential zone, pursuant to division
(E) of this section; except when exclusively manufacturing food and/or edible cannabis
products and no other products, and no extraction of cannabis or cannabis products is
taking place on the premises, the distance will be as specified in division (A)(2) below.
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(2) Manufacturing of edible cannabis products and no other products, and where
no on -site extraction occurs, shall not be located within 600 feet of a school, day-care,
or youth center, and shall not be located within 25 feet of a dwelling unit within a
residential zone, pursuant to division (E) of this section.
(3) Subject to the distance and other requirements of this chapter and the code, a
licensed manufacturing premises may only be located on a property within the Industrial
(I)or the Industrial -Commercial (I-C) zones, and following the application for and
granting of a development agreement by the city and a commercial cannabis production
business permit in accordance with this chapter. The proposed use shall comply with
the minimum requirements set forth in this chapter for distance separations between
manufacturing sites and other specific land uses.
(4) All manufacturing of cannabis shall occur in an enclosed structure.
(5) Licensed premises for manufacturing shall not exceed the 22,000 square feet
maximum authorized pursuant to the controlling development agreement.
(6) From a public right-of-way, there should be no exterior evidence of the
manufacturing of cannabis or manufactured cannabis except for any signage authorized
by this code.
(7) All licensed premises shall comply with the city's lighting standards including,
without limitation, fixture type, wattage, illumination levels, and shielding and secure the
necessary approvals and permits as needed.
(8) All windows on the licensed premises of the manufacturing site shall be
appropriately secured and all cannabis securely stored.
(9) All operations conducted on the licensed premises, and all equipment used
therein must be in compliance with all applicable state and local laws, including all
building, electrical, and fire codes.
(10) If hazardous materials, flammable gas, flammable liquefied gas, flammable
and combustible liquids, or other flammable material, as those terms are defined in the
Los Angeles County Code, Title 32, Fire Code ("CFC") § 202, are to be used in the
processing of medical cannabis or adult use, then the provisions of CFC § 407 shall be
applicable where hazardous materials subject to permits under CFC § 50 (Hazardous
Materials) are located on the licensed premises.
(11) Storage, use, and handling of compressed gases in compressed gas
containers, cylinders, tanks and systems shall comply with CFC Chapter 53. Partially
full compressed gas containers, cylinders or tanks containing residual gases shall be
considered as full for the purposes of the controls required. Compressed gases
classified as hazardous materials shall also comply with CFC Chapter 50 for general
requirements and CFC Chapter 53 addressing specific hazards, including CFG Chapter
58 (Flammable Gases), CFC Chapter 60 (Highly Toxic and Toxic Materials), CFC
Chapter 63 (Oxidizers, Oxidizing Gases and Oxidizing Cryogenic Fluids) and CFC
Chapter 64 (Pyrophoric Materials). A manufacturer shall prevent, control, and mitigate
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of dangerous conditions related to storage, use, dispensing, mixing and handling of
flammable and combustible liquids shall be in accordance with CFC Chapter 50 and 57.
(12) Licensed premises are permitted under this chapter under a Group F-1
(Factory Industrial Moderate -Hazard) Occupancy under the Fire Code. All new
construction shall be fire sprinkled per the Fire Code. For manufacturing sites that will
be sited in an existing structure, an automatic sprinkler system shall be provided
throughout all buildings containing a Group F-1 occupancy where one of the following
conditions exists:
(a) A Group F-1 fire area exceeds 12,000 square feet.
(b) A Group F-1 fire area is located more than three stories above grade plane.
(c) The combined area of all Group F-1 fire areas on all floors, including any
mezzanines, exceeds 22,000 square feet.
(13) Suitability of the proposed. All licensed facilities shall have air scrubbers or a
filtration system capable of eliminating odors from escaping the building.
(14) The manufacture, distribution, and transportation of edible cannabis products
shall be conducted in a manner that complies with all applicable food safety laws for
the protection of humans consuming cannabis.
(15) All products, storage facilities, utensils, equipment, and materials used for
the manufacture of edible cannabis products shall be approved, used, managed, and
handled in accordance with the provisions of all state and county health and safety
laws regarding the preparation, distribution, labeling, and sale of food.
(16) Any manufacturing site that proposes to prepare, store, dispense, and
distribute edible cannabis products shall comply with the relevant provisions of all
state and county health and safety laws regarding the preparation, distribution,
labeling, and sale of food.
(17) No food production shall be allowed in a facility where edible cannabis
products are manufactured to avoid the unintentional contamination of non -
cannabis foods with cannabis.
(18) All owners, employees, volunteers, or other individuals that participate in
the production of edible cannabis Products shall be state certified food handlers.
The valid certificate number of each such owner, employee, volunteer, or other
individual shall be on record at the permitted premises where said individual
participates in the production of edible cannabis products.
(B) Cultivation sites. No cultivation site shall be located within 600 feet of a school,
daycare, park, or youth center, or within 50 feet of a dwelling unit within a residential
zone, pursuant to division (E) of this section.
(1) Subject to the distance and other requirements of this chapter and the code, a
licensed premises may only be a property within the Industrial (1) or Industrial -
Commercial (I-C) zones, and following the application for and granting of a development
agreement by the city and a business permit in accordance with this chapter. The
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proposed use will comply with the minimum requirements set forth in this chapter for
distance separations between specific land uses.
(2) All cultivation sites shall occur in an enclosed locked structure. Licensed
premises shall not exceed the 22,000 square feet maximum authorized pursuant to the
controlling development agreement.
(3) From a public right-of-way, there should be no exterior evidence of the
cultivation of medical and adult use cannabis except for any signage authorized by this
chapter.
(4) All cultivation sites shall comply with the city's lighting standards including,
without limitation, fixture type, wattage, illumination levels, and shielding and secure the
necessary approvals and permits as needed.
(5) All windows on the licensed premises of a cultivation site shall be appropriately
secured and all cannabis securely stored.
(6) Areas where cannabis is cultivated are wet locations, and the electrical system
in such areas must comply with Title 8 of this code, Article 300.6(D) of the National
Electric Code, city and California building codes, fire codes, electrical codes, and all
other applicable laws.
(7) Cultivation sites are under a Group F-1 (Factory Industrial Moderate -Hazard)
Occupancy under the Fire Code. All new construction is required to be fire sprinkled
under the Fire Code. For cultivation sites that will be sited in an existing structure, an
automatic sprinkler system shall be provided throughout all buildings containing a Group
F-1 occupancy where one of the following conditions exists:
(a) A Group F-1 fire area exceeds 12,000 square feet.
(b) A Group F-1 fire area is located more than three stories above grade plane.
(c) The combined area of all Group F-1 fire areas on all floors, including any
mezzanines, exceeds 22,000 square feet.
(8) In addition to a manufacturing or cultivation permit, a cannabis business
applicant may apply for another use as permitted by MAUCRSA, a development
agreement approved by City Council, this chapter, and any rules adopted pursuant
thereto.
(9) Suitability of the proposed property. All licensed facilities shall have air
scrubbers or a filtration system capable of eliminating odors from escaping the building.
(C) Distribution sites.
(1) A distribution licensee shall carry or move cannabis within the city in
accordance with MAUCRSA and state regulations.
(2) No distribution site shall be located within 600 feet of a school, daycare center,
or youth center or within 24 feet of a dwelling unit within a residential zone, pursuant to
division (E) of this section.
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(3) Subject to the distance and other requirements of this chapter and the code, a
licensed premises may only be a property within the Industrial (1) or the Industrial -
Commercial (I-C) zones, and following the application for and granting of a
development agreement by the city and a business permit in accordance with this
chapter. The proposed use shall comply with the minimum requirements set forth in this
chapter for distance separations between specific land uses.
(4) All distribution, including but not limited to packaging, repackaging, loading,
and unloading of products shall occur in an enclosed structure.
(5) Licensed premises for distribution shall not exceed the 40,000 square feet
maximum; it may be less than 40,000 square feet as negotiated pursuant to the
controlling development agreement.
(6) From a public right-of-way, there should be no Exterior evidence of commercial
cannabis activity except for any signage authorized by this code.
(7) All licensed premises shall comply with the city's lighting standards including,
without limitation, fixture type, wattage, illumination levels, shielding, and secure the
necessary approvals and permits as needed.
(8) All windows on the licensed premises of the distribution site shall be
appropriately secured and all cannabis securely stored.
(9) All operations conducted on a licensed premises, and all equipment used
therein, must be in compliance with all applicable state and local laws, including all
building, electrical, and fire codes.
(10) Licensed premises are permitted under this chapter under a Group F-1
(Factory Industrial Moderate -Hazard) Occupancy under the Fire Code. All new
construction shall be fire sprinkled per the CFC. For distribution sites that will be
situated in an existing structure, an automatic sprinkler system shall be provided
throughout all buildings containing a Group F-1 occupancy where one of the following
conditions exists:
(a) A Group F-1 fire area exceeds 12,000 square feet.
(b) A Group F-1 fire area is located more than three stories above grade plane.
(c) The combined area of all Group F-1 fire areas on all floors, including any
mezzanines, exceeds 22,000 square feet.
(11) Suitability of the proposed property. Staff reserves the right to require a
licensed Distribution facility to install air scrubbers or a filtration system capable of
eliminating odors from escaping the building if the facility is found to emit cannabis
odors.
(D) Nonconforming Use. Any Commercial Production Cannabis Activity 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.
(E) Distances. All distances specified in this section shall be measured in the
following manner:
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(1) 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.
(F) Factors considered for permit approval. Approval of a permit shall take into
account the safety of the public, including, but not limited to, the following factors:
(1) Suitability of the proposed property;
(2) Suitability of security plan;
(3) Suitability of business plan and financial record keeping;
(4) Criminal history;
(5) Regulatory compliance history;
(6) Good legal standing;
(7) Community engagement;
(8) Environmental impact; and
(9) Labor relations.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.08 NO TRANSFER OR CHANGE IN OWNERSHIP OR LOCATION.
(A) 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.
(B) 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.
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(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.09 ALTERING OR MODIFYING LOCATION.
(A) Lawful possession. Persons permitted pursuant to the provisions of this chapter
or those making application for such permits, must demonstrate proof of lawful
possession of the licensed premises. Evidence of lawful possession consists of properly
executed deeds of trust, leases, or other written documents.
(B) Modifying location. No licensee shall add additional units or areas, thereby
altering the initially approved premises, without filing an application to modify the
location on forms prepared by the Chief Executive Officer, paying any applicable
processing fees, and obtaining approval from the City Council.
(C) Subletting not authorized. No licensee is authorized to sublet any portion of any
licensed premises for any purpose, unless all necessary forms and application to modify
the existing location to accomplish any subletting have been approved by the City
Council.
(D) Application required to alter or modify licensed premises. After issuance of a
permit, the licensee shall not make any physical change, alteration, or modification of
the licensed premises that materially or substantially alters the premises, production
estimates, or the usage of the premises from the plans originally approved with the
development agreement, without the prior written approval of the City Council or its
designee. The licensee whose premises are to be materially or substantially changed is
responsible for filing an application for approval on current forms provided by the city.
(E) What constitutes a material change. Material or substantial changes, alterations,
or modifications requiring approval include, but are not limited to, the following:
(1) Any increase or decrease in the total physical size or capacity of the location;
(2) The sealing off, creation of, or relocation of a common entryway, doorway,
passage, or other such means of public ingress and/or egress, when such common
entryway, doorway, or passage alters or changes limited access areas, such as the
cultivation within the licensed premises;
(3) The installation or replacement of electric fixtures or equipment, the lowering of
a ceiling, or electrical modifications made for the purpose of increasing power usage to
enhance cultivation activities.
(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.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
Rejection; findings. The Chief Executive Officer or designee may (1) reject an
application or (2) revoke a permit pursuant to Section 127.15.5, upon making any of the
following findings:
(A) The applicant made one or more false or misleading statements or omissions on
the registration application or during the application process;
(B) The applicant's business entity, if applicable, is not properly organized in strict
compliance pursuant to the applicable law, rules, and regulations;
(C) The applicant fails to meet the requirements of this chapter or any regulation
adopted pursuant to this chapter;
(D) The applicant's facility or its location is in violation of any building, zoning, health,
safety, or other provision of this code, or of any state or local law or the facility or its
location is not permitted in the proposed area, or the issuing or continuation of a permit
would be contrary to the public health, welfare, safety, or morals;
(E) The applicant, or any of its officers, directors, owners, managers, or employees is
under 21 years of age;
(F) The applicant, or any of its officers, directors, or owners, or any person who is
managing or is otherwise responsible for the activities of the licensed premise, or any
employee who participates in the dispensing, cultivation, processing, manufacturing,
delivery, or transporting of medical marijuana or who participates in the daily operations
of the medical and adult use marijuana facility, has been convicted of a violent felony, a
felony, or misdemeanor involving fraud, deceit, embezzlement, or moral turpitude;
(G) The applicant or any of its officers, directors, owners, or managers is a licensed
physician making patient recommendations for cannabis;
(H) The applicant or any of its officers, directors, owners, or managers has been
sanctioned by the city, the State of California, or any county for unregistered medical
cannabis activities or has had a registration revoked under this chapter in the three prior
years;
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(1) The applicant did not pay to the city the required application and processing fees
or is in violation of the terms of its development agreement;
(J) Good cause exists to deny or revoke the application, as defined in this chapter.
(K) Applicant's application does not reflect the purpose of this chapter, to promote
the health, safety, morals, and general welfare of residents and businesses within the
city.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.11 SECURITY.
(A) General security requirements.
(1) Security cameras shall be installed and maintained in good working condition,
and used in an on -going manner with at least 240 continuous hours of digitally recorded
documentation in a format approved by the Chief of Police and/or his or her designee.
The cameras shall be in use 24 hours per day, seven days per week. The areas to be
covered by the security cameras include, but are not limited to, the storage areas,
manufacturing or cultivation areas, all doors and windows, and any other areas as
determined by the Chief of Police and/or his or her designee.
(2) Entrances to any storage areas shall be locked at all times and under the
control of licensee's staff.
(3) The business entrance(s) and all window areas shall be illuminated during
evening hours. The applicant shall comply with the city's lighting standards regarding
fixture type, wattage, illumination levels, shielding, etc., and secure the necessary
approvals and permits as needed.
(4) All windows on the licensee's building shall be unopenable or locked and all
product securely stored.
(5) Each licensee shall implement a system to track the cultivation and
manufacturing of cannabis in order to prevent the licensee from diverting or transporting
cannabis to any location not authorized by state laws or any local law.
(6) All waste and disposal containers shall be stored in a secure area and be under
the control of the licensee's staff.
(B) Security alarm systems; minimum requirements.
(1) Each licensed premises shall have a security alarm system, installed by a
licensed alarm company that alerts the alarm monitoring company on all premises entry
points and windows.
(2) Each licensed premises must be continuously monitored by an alarm
monitoring company.
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(3) The licensed premises shall maintain up-to-date records and existing contracts
on the premises that describe the location and operation of each security alarm system,
a schematic of security zones, the name of the licensed alarm company, and the name
of any vendor monitoring the premises.
(4) Upon request, each licensee shall make available to the Chief Executive Officer
or any state or local law enforcement agency, for a purpose authorized by this chapter
or state or local law enforcement purpose, all information related to security alarm
systems, recordings, monitoring, and alarm activity.
(C) Lock standards; minimum requirement. On all doors, the licensee shall ensure
the use of commercial -grade, nonresidential door locks.
(D) Video surveillance requirements.
(1) Prior to exercising the privileges of a permit under this chapter, an applicant
must install a fully operational video surveillance and camera recording system. The
recording system must record in digital format and meet the requirements outlined in
this section.
(2) All video surveillance records must be stored in a secure area that is only
accessible to the management staff of the licensed premises.
(3) Video surveillance records and all recordings must be made available upon
request to the Chief of Police or any other state or local law enforcement agency for a
purpose authorized by this chapter or for any other state or local law enforcement
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(4) Video surveillance records shall be held in confidence by all employees and
representatives of the Chief Executive Officer, except that the Chief of Police or his or
her designee may provide such records and recordings to a state or local law
enforcement agency for a purpose authorized by this chapter or for a state or local law
enforcement purpose.
(5) A sign shall be posted in a conspicuous place near each point of public access
that shall be not less than 12 inches wide and 12 inches high, composed of letters not
less than one inch in height, stating "All Activities Monitored by Video Camera" or
"These Premises Are Being Digitally Recorded" or otherwise advising all persons
entering the licensed premises that a video surveillance and camera recording system
is in operation at the licensed premises and recording all activity as provided in this
chapter.
(6) The licensed premises should use video surveillance equipment and a camera
system that can be accessed remotely 24 hours a day by the Baldwin Park Police
Department and the city, as specified in each development agreement.
(E) Video surveillance equipment.
(1) Video surveillance equipment shall, at a minimum, consist of digital or video
recorders, cameras capable of meeting the recording requirements described in this
1:
section, video monitors, digital archiving devices, and a color printer capable of
delivering still photos.
(2) All video surveillance systems must be equipped with a failure notification
system that provides prompt notification to the licensed premises of any prolonged
surveillance interruption or the complete failure of the surveillance system.
(3) Licensed premises are responsible for ensuring that all surveillance equipment
is properly functioning and maintained so that the playback quality is suitable for viewing
and the surveillance equipment is capable of capturing the identity of all individuals and
activities in the monitored areas.
(4) All video surveillance equipment shall have sufficient battery backup to support
a minimum of four hours of recording in the event of a power outage.
(F) Placement of cameras and required camera coverage.
(1) Camera placement shall be capable of identifying activity occurring within 20
feet of all points of ingress and egress and shall allow for the clear and certain
identification of any individual and activities on the licensed premises.
(2) All entrances and exits to the facility shall be recorded from both indoor and
outdoor vantage points.
(3) The system shall be capable of recording all pre -determined surveillance areas
in any lighting conditions. If the licensed premises has a cannabis cultivation area, a
rotating schedule of lighted conditions and zero -illumination can occur as long as
ingress and egress points to those areas remain constantly illuminated for recording
purposes.
(4) Areas in which cannabis is grown, tested, cured, manufactured, or stored shall
have camera placement in the room facing the primary entry door at a height that
provides a clear, unobstructed view of activity without sight blockage from lighting
hoods, fixtures, or other equipment.
(5) Cameras shall also be placed at each location where weighing, packaging,
transport, preparation, or tagging activities occur.
(6) At least one camera must be dedicated to record the access points to the
secured surveillance recording area.
(G) Location and maintenance of surveillance equipment.
(1) Surveillance recording equipment must be housed in a designated locked and
secured room or other enclosure with access limited to authorized employees, agents of
the Chief Executive Officer, state or local law enforcement agencies for a purpose
authorized by this chapter or for any other state or local law enforcement purpose, and
service personnel or contractors.
(2) The licensee must keep a current list of all authorized employees and service
personnel who have access to the surveillance system and/or room on the licensed
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premises. Licensed premises must keep a surveillance equipment maintenance activity
log on the licensed premises to record all service activity, with the identity of the
individual(s) performing the service, the service date and time, and the reason for
service to the surveillance system.
(3) Off -site monitoring and video recording storage of the licensed premises or by
an independent third -party is authorized as long as standards exercised at the remote
location meet or exceed all standards for on -site monitoring.
(4) Each licensed premises located in a shared building must have a separate
surveillance room/area that is dedicated to that specific licensed premises. All minimum
requirements for equipment and security standards as set forth in the section apply to
the review station.
(H) Video recording and retention requirements.
(1) All camera views of all recorded areas must be continuously recorded 24 hours
a day.
(2) All surveillance recordings must be kept for a minimum of 90 days and be in a
format that can be easily accessed for viewing on premises. Video recordings must be
archived in a format that ensures authentication of the recording as legitimately -
captured video and guarantees that no alteration of the recorded image has taken
place.
(3) The surveillance system or equipment must have the capabilities to produce a
color still photograph from any camera image, live or recorded.
(4) The date and time must be embedded on all surveillance recordings without
significantly obscuring the picture.
(5) Time is to be measured in Pacific Standard Time in accordance with the U.S.
National Institute of Standards and Technology.
(6) After the 90-day surveillance video retention schedule has lapsed, surveillance
video recordings must be erased or destroyed prior to being discarded or disposed of
for any other purpose. Surveillance video recordings may not be destroyed if the
licensed premises knows or should have known of a pending criminal, civil, or
administrative investigation or any other proceeding for which the recording may contain
relevant information.
(1) Other records. All records applicable to the surveillance system and cannabis
tracking system shall be maintained on the licensed premises. At a minimum, licensed
premises shall maintain a map of the camera locations, direction of coverage, camera
numbers, surveillance equipment maintenance activity log, user authorization list, and
operating instructions for the surveillance equipment.
(J) Suitability of security plan. The applicant's security plan includes the presence of
security personnel on premises or patrolling the premises 24 hours per day.
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(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.12 FEES AND CHARGES.
Prior to operating in the city, the operator of each licensed premises shall timely and
fully pay all fees associated with the establishment of that business. The fees shall be
as set forth in the schedule of fees and charges established by resolution of the City
Council, including, but not limited to, the following:
(A) Application fee for accepting a registration application, due and payable in full at
the time an application is submitted;
(B) Processing fee for the cost to the city of processing an application and reviewing,
investigating, and scoring each application in accordance with any evaluation system to
determine eligibility for issuance of a permit, due and payable in full at the time a
registration application is submitted;
(C) Permit issuance fee for the cost to the city of preparing a development
agreement, City Council review and approval of the development agreement and the
permit, and preparation and issuance of the permit as authorized by the City Council,
due and payable in full at the time the city issues a permit;
(D) Amended registration fee for the cost to the city of reviewing amendments or
changes to the registration form previously filed on behalf of the licensed premises; due
and payable in full at the time amendments or changes to any permit form is submitted
to the city;
(E) Permit renewal fee for the cost to the city of processing an application to renew a
permit; due and payable in full at the time application is made to renew a permit;
(F) Any fees for inspection or investigation that are not included within the other fees
associated with registration, due and payable in full upon request of the city; and
(G) Any fees set forth in the applicable development agreement.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.13 LIMITATIONS ON CITY'S LIABILITY.
(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 Cannabis Production Activity approved under to this
Chapter.
(B) Indemnity and insurance. As a condition of approval of a permit as provided in
this chapter, the applicant or its legal representative shall do the following:
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(1) Execute an agreement indemnifying the city from any claims, damages,
injuries, or liabilities of any kind associated with the registration or operation of the
cannabis facility or the prosecution of the cannabis facility or its owners, managers,
directors, officers, employees, or its qualified patients or primary caregivers or
customers for violation of federal or state laws;
(2) Maintain insurance in the amounts and of the types that are acceptable to the
City Council or designee;
(3) Name the city as an additional insured on all city -required insurance policies;
(4) Agree to defend, at its sole expense, any action against the city, its agents,
officers, and employees related to the approval of the licensee's regulatory permit; and
(5) Agree to reimburse the city for any court costs and attorney fees that the city
may be required to pay as a result of any legal challenge related to the city's approval of
the licensee's regulatory permit. The city may, at its sole discretion, participate at its
own expense in the defense of any such action, but such participation shall not relieve
the operator of its obligation hereunder.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.14 INSPECTIONS.
(A) Right to inspect. The Chief Executive Officer, Chief of Police, or their designees,
shall have the right to enter all licensed premises from time to time unannounced during
the facility's hours of operation for the purpose of making reasonable inspections to
observe and enforce compliance with this chapter, to inspect and copy records required
to be maintained under this chapter, or to inspect, view, and copy recordings made by
security cameras, all without requirement for a search warrant, subpoena, or court
order, and subject to appropriate fees as specified in the development agreement.
(B) Noncompliant operations. Operation of a licensed premises in noncompliance
with any conditions of approval or the provisions of this chapter shall constitute a
violation of the code and shall be enforced pursuant to the provisions of this code.
(C) Revocation of permit. The Chief Executive Officer or designee may summarily
suspend or revoke a permit, or disqualify an applicant from the registration process, or
elect not to renew a regulatory permit if any of the following, singularly or in
combination, occurs:
(1) The Chief Executive Officer or designee determines that the cannabis facility
has failed to comply with any requirement of this chapter or the approved development
agreement or any condition of approval or a circumstance or a situation has been
created that would have permitted the Chief Executive Officer or designee to deny, the
regulatory permit under this chapter or elect not to renew or revoke the permit under this
chapter;
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(2) The licensee or applicant has conducted itself or is being conducted in a
manner that creates or results in a public nuisance, as defined in Chapter 95 of the
BPMC;
(3) The licensee premises ceased operations for more than 90 calendar days,
including during change -of -ownership proceedings;
(4) Ownership is changed without the City Council approval and authorization
under this chapter;
(5) The licensee relocates to a different location or premises without City Council
approval and authorization; and
(6) The licensee fails to allow inspection or copying of the security recordings or
the activity logs or records required to be kept under this chapter or denies entry to the
premises to city officials authorized to inspect the premises.
(D) Abatement. The city shall initiate abatement proceedings as authorized by the
code, if necessary, to correct any violation of this chapter or code.
(E) Violation deemed misdemeanor - penalty. Any person violating any of the
provisions of this chapter or any applicable rule in this chapter or code, shall be guilty of
a misdemeanor, and upon conviction thereof shall be punishable by the maximum
penalties provided for in the Cal. Penal Code § 19.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.15 PUBLIC NUISANCE PROHIBITED.
It is hereby declared to be unlawful and a public nuisance for any person owning,
leasing, occupying, or having charge of any parcel within the city to create a public
nuisance in the course of cultivating, manufacturing, testing, or distributing cannabis or
any part thereof in any location, indoor or outdoor. A public nuisance may be deemed to
exist if such activity produces:
(A) Odors which are disturbing to people of reasonable sensitivity or present on
adjacent or nearby property or areas open to the public.
(B) Repeated responses. Repeated responses to the licensed premises by law
enforcement personnel.
(C) Disruption to free passage. A repeated disruption to the free passage of persons
or vehicles in the neighborhood, excessive noise, exceeding noise levels set by Baldwin
Park Zoning Code § 153.140.070, which is disturbing to people of normal sensitivity on
adjacent or nearby property or areas open to the public.
(D) Other disruption activity. Any other impacts on the neighborhood that are
disruptive of normal activity in the area including, but not limited to, grow lighting visible
23
outside the building, excessive vehicular traffic or parking occurring at or near premises,
and excessive noise emanating from the premises.
(E) Outdoor commercial cannabis activity. Outdoor growing and cultivation of
cannabis.
(F) Commercial cannabis production activity without a valid City permit and business
license.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.15.5 REVOCATION
(A) Permit revocation. The Chief Executive Officer may revoke a permit upon a
finding of any of the following:
(1) The permit was obtained or extended by false, misleading or incomplete
information;
(2) The use or development for which such approval was granted has ceased to
exist by voluntary abandonment;
(3) One or more of the conditions upon which the permit was approved have been
violated, or have not been complied with;
(4) One of the grounds for permit denial or revocation listed in Section 127.10
exists;
(5) The use or development has violated another ordinance or law; or
(6) The use or development under the permit is being conducted in a manner
4etrimental to public health, safety, or welfare, or such use or development constitutes:M
public nuisance.
(C) Permit revocation public hearing. A hearing by the Chief Executive O-I'Vicer or
their designee is required for any action to revoke a permit. Pursuant to the hearing an4
the facts determined pursuant thereto, the Chief Executive Officer may revoke the
permit, refuse to revoke the permit or modify or delete conditions of approval or add
new conditions of approval in order to address the issues raised in the revocation
hearing.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
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§ 127.16 APPEALS
Any decision regarding or pertaining to the permit process or permit revocation set
forth in this chapter, or any action taken by the Chief Executive Officer or designee
pursuant hereto, may be appealed to the City Council. Such appeal shall be taken by
filing with the City Clerk, within ten days after notice of the action or decision
complained of has been issued, a written statement setting forth the grounds for the
appeal. The City Clerk shall transmit the written statement to the City Council, and at its
next regular meeting, the Council shall set a time and place for a hearing on the appeal.
Notice of the time and place of such hearing shall be mailed to the appellant. The
decision of the City Council on such appeal shall be final and binding on all parties
concerned.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.17 STATEWIDE REGULATION
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.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.18 INTERPRETATION
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.
(Ord. 1400, passed 8-16-17; Am. Ord. 1403, passed 12-13-17; Am. Ord. 1408, passed
4-4-18; Am. Ord. 1460, passed 11-3-21)
§ 127.20 ADDITIONAL OPERATING REQUIREMENTS FOR DISTRIBUTION
JA) Distribution shall comply with State law at all times.
(B) Security plans developed pursuant to this Chapter 128 shall include
provisions relating to vehicle security and the protection of employees and product
during loading, unloading and in transit.
(C) A distributor 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
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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.
(D) A distributor shall facilitate distributions with a technology platform owned
by or licensed to the distributor 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 distribution on behalf of the
distributor departed the licensed premises.
(2) The time that the individual conducting distribution on behalf of the
distributor completed distribution to the manufacture, cultivator or retailer or
returned to the licensed premises to store the cannabis and cannabis products.
(3) The time that the individual conducting distribution on behalf of the
manufacture, cultivator or retailer returned to the licensed premises.
(4) The route the individual conducting distribution on behalf of the
distributor traveled between departing and returning to the licensed premises to
conduct the distribution or transportation for storage.
(5) For each individual distribution transaction, the identity of the
individual conducting distribution on behalf of the manufacture, cultivator or
retailer.
(6) For each individual distribution transaction, the vehicle used to
conduct distribution on behalf of the manufacture, cultivator or retailer.
(7) For each individual distribution transaction, the identity of the
individual conducting distribution on behalf of the distributor.
(E) Each cannabis distributor permit holder shall maintain accurate books and
records, detailing all of the revenues and expenses of all cannabis distribution and
storage. On no less than an annual basis, or at any time upon reasonable request of the
city, each cannabis distributor permit holder shall file a sworn statement detailing the
distribution and storage of cannabis during the previous twelve-month period (or shorter
period based upon the timing of the request), provided on a monthly basis. The
statement shall also include gross sales for each month, and all applicable taxes paid or
due to be paid. If, upon written request from the City, each cannabis distributor permit
holder shall make available to the City all books, records, accounts, inventory and
access to onsite operations of persons engaged in cannabis distribution specific to the
business, including examination of both state and federal income tax returns, sales tax
returns, or other evidence documenting the finances pertaining to cannabis distribution
in the City for the purpose of verifying compliance with this Chapter and any other
applicable provision of this Code.
(F) Employees distributing cannabis or cannabis products on behalf of the
permittee may not receive anything tangible from the manufacture, producer or retailer.
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All payments for the cannabis or cannabis products should be transmitted to the
permittee electronically.
(G) A distributor shall not leave cannabis or cannabis goods in an unattended
motor vehicle outside of the distributor's hours of operation. A distributor shall ensure
that vehicles used for delivery of cannabis or cannabis products are cleared of all
cannabis or cannabis products before ceasing daily operations.
SECTION 4: Chapter 128 is hereby added to the Baldwin Park Municipal Code to read
as follows:
CHAPTER 128. Cannabis Retailers
128.01 Cannabis retailers prohibited unless specifically authorized
128.02 Compliance with laws
128.03 Definitions
128.04 Retail cannabis business permit required
128.05 Location and design requirements for cannabis retailers
128.06 Chapter 127 priority cannabis retailer application procedure
128.07 City Council developed cannabis retailer application procedure
128.08 Limitations on the city's liability
128.09 Retail cannabis business permit term
128.10 Suspension and revocation of retail cannabis business permits
128.11 Appeals regarding retail cannabis business permits
128.12 Change in location; updated application information
128.13 Transfer of a retail cannabis business permit
128.14 Records and recordkeeping
128.15 Security measures
128.16 Restriction on alcohol and tobacco sales
128.17 Fees and charges
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128.18 General operating requirements
128.19 Additional operating requirements
128.20 Additional operating requirements for delivery
128.21 Promulgation of regulations, standards, and other legal duties
128.22 Community relations
128.23 Fees deemed debt to city
128.24 Permittee, owner, and property owner responsible for violations
128.25 Inspection and enforcement
128.26 Concurrent regulation with the state
128.27 Violations declared a public nuisance
128.28 Each violation a separate offense
128.29 Criminal penalties
128.30 Remedies cumulative and not exclusive
§ 128.01 CANNABIS RETAILERS PROHIBITED UNLESS SPECIFICALLY
AUTHORIZED
(A) Except as specifically authorized by this Chapter 128, 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
129. 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 128, including
the City retail cannabis business permit application and approval processes under
Section 128.07.
(B) Nothing in this Chapter 128 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 128 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 128, Title XV of the City Municipal Code,
MAUCRSA, and all other applicable State and local laws, rules, and regulations.
§ 128.02 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 128 shall be construed as in conflict with State law.
§ 128.03 DEFINITIONS
When used in this Chapter 128, 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 128 (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.
FX
"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 SALE(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
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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 (i) 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 128
"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:
(1) 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;
(2) The president, chief executive officer, secretary, treasurer, or chief financial
officer of a nonprofit applicant or permittee; or
(3) 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
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Chapter 128, 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 128 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 128 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 128 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 128 shall override the definition of "school" used in MAUCRSA or
Section 11362.768 of the Health & Safety Code.
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"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:
(1) 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";
(2) 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
(3) 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.
§ 128.04 RETAIL CANNABIS BUSINESS PERMIT REQUIRED
(A) 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:
(1) 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 128 to conduct such business or activity;
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(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.
§ 128.05 LOCATION AND DESIGN REQUIREMENTS FOR CANNABIS RETAILERS
(A) 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:
(B) 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.
(C) Subject to the requirements of this Chapter 128, a cannabis retailer may only be
located on property zoned Industrial (1) or Industrial -Commercial (I-C).
(D) All distances specified in this Section 128.05 shall be measured in the following
11MI DHO
(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
(E) 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 128.
(F) 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
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(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.
PROCEDURE
(A) The People of the City find that:
(1) 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 128 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
128 carries out the purpose and intent of the Measure.
(B) Within thirty (30) days following the effective date of this Chapter 128, the Chief
Executive Officer, pursuant to Section 128.21, shall, as a ministerial duty, make
available the necessary forms, adopt any necessary application rules for the
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submission, intake, review, and approval of retail cannabis business permit applications
for cannabis retailers meeting the following criteria:
(1) 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
128.06) 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;
(3) 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
128.06) 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 128.06) 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 128.06) 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
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effective, inclusive of renewals, on the date of the application submission under this
Section 128.06).
(C) Within thirty (30) days of receipt of a retail cannabis business permit application
for a cannabis retailer submitted under Subsection B, the Chief Executive Officer shall,
as a ministerial duty, review the retailer application for the following minimum
requirements:
(1) Payment of an application fee established by resolution of the City Council
within thirty (30) days following the effective date of this Chapter 128 to cover all costs
incurred by the City in the application process under this Section 128.06;
(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 128.06) 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;
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(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 128.06) 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 128.06) 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 128.06) 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 128.06);
(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 128.181.
(D) 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.
(E) The Chief Executive Officer shall, as a ministerial duty, cease acceptance of
retail cannabis business permit applications for retailers pursuant to this Section 128.06
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 128.06.
(F) 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 128.181. Upon the completion of an applicant's background
checks by the Chief of Police in accordance with Section 128.181, 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:
(1) 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
(G) Any decision of the Chief Executive Officer or City Council under this Section
128.06 shall be a final administrative decision not subject to administrative appeal under
any provisions of this Chapter 128 or any provisions of the City Municipal Code but,
rather, subject to judicial review and remedies.
§ 128.07 CITY COUNCIL DEVELOPED CANNABIS RETAILER APPLICATION
PROCEDURE
(A) After three -hundred -sixty-five (365) days following the effective date of this
Chapter 128, 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 128.07, 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 128.06, 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:
(1) The number of retail cannabis business permits for retailers based within the
City issued pursuant to this Section 128.07 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 128.07 shall be zero
(0);
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(3) At least one (1) of the retail cannabis business permits for retailers based
within the City issued pursuant to this Section 128.07 shall be issued to a social equity
applicant;
(4) A cannabis retailer with a retail cannabis business permit issued pursuant to
this Section 128.07 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 128.07 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 128.07 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 128.07 shall comply with the requirements set forth in
this Chapter 128, 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 128.07 may not be
amended by the City Council or regulations promulgated by the Chief Executive Officer
pursuant to this Chapter 128. 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.
§ 128.08 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
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128 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.
§ 128.09 RETAIL CANNABIS BUSINESS PERMIT TERM
(A) Subject to this Section 128.09 and Section 128.10, 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 128. 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 128 subject to suspension or revocation
under Section 128.10, if the permittee commences correction of such noncompliance
items within sixty (60) days and thereafter diligently prosecutes correction of such
noncompliance items to completion.
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(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 128.
§ 128.10 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 128.
(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.
§ 128.11 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.
§ 128.12 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 128.12 within one -hundred eighty (180) days
following the effective date of this Chapter 128. 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 128.12 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 (I-C).
(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 128, including any change in
the cannabis retailer ownership or management.
§ 128.13 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 128.21 within one -
hundred eighty (180) days following the effective date of this Chapter 128. 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 128.
(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 128.13 is hereby declared void, and such an
unpermitted transfer shall be deemed a ground for revocation of the permit.
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(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 128, 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 ("HIPAX) 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.
§ 128.15 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:
(1) 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
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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 maybe 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
128.
(E) A cannabis retailer shall notify the Chief Executive Officer within twenty-four (24)
hours after discovering any of the following:
(1) 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.
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(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.
§ 128.16 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.
§ 128.17 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 128 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
128.20, including, but not limited to, a verification of the amount of taxes required to be
paid during any period.
§ 128.18 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
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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.
(1) In addition to the requirements otherwise set forth in this Section 128.18,
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.
(1) 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 128 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 128 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 128. 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.
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(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.
(0) 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 128 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 128 or City or State law and (2) the right to inform any person of his or
her potential rights under this this Chapter 128 or City or State law and to assist him or
her in asserting such rights. Protections under this this Chapter 128 or City or State law
shall apply to any employee who mistakenly, but in good faith, alleges noncompliance
with this Chapter 128 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 128 or City or State law shall raise a rebuttable presumption of having done so
in retaliation for the exercise of such rights.
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§ 128.19 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."
(3) "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."
1'5I
§ 128.20 ADDITIONAL OPERATING REQUIREMENTS FOR DELIVERY
(A) Delivery shall comply with State law at all times.
(B) Security plans developed pursuant to this Chapter 128 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
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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.
(1) 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
53
documentation of each customer to ensure the customer is not under the age of twenty-
one (21) years.
(J) Each delivery vehicle shall be equipped with a dual dash camera system showing
the inside of the vehicle as well as a forward facing camera and shall be turned on at all
time the vehicle is in the City making cannabis deliveries. Video footage shall be
retained for a period of at least two (2) weeks and made available to the City upon
request.
(K) Each cannabis delivery permit holder shall maintain a current register of names
and required information for all employees participating in the delivery of cannabis in the
city and all vehicles used for the delivery of cannabis in the city. In no event shall any
employee participate in the delivery of cannabis in the city or a vehicle be used for the
delivery of cannabis in the city until the information is updated to the permit holder's
register. Each cannabis delivery permit holder shall provide the City its current register
upon request by the City within forty-eight (48) hours.
(L) Cannabis delivery is only permitted in the city between the hours of 8:00 am to
10:OOpm.
(M) Each cannabis delivery permit holder shall maintain accurate books and records,
detailing all of the revenues and expenses of all cannabis delivery in the city. On no less
than an annual basis, or at any time upon reasonable request of the city, each cannabis
delivery permit holder shall file a sworn statement detailing the number of sales by the
cannabis delivery permit holder during the previous twelve-month period (or shorter
period based upon the timing of the request), provided on a monthly basis. The
statement shall also include gross sales for each month, and all applicable taxes paid or
due to be paid. If, upon written request from the City, each cannabis delivery permit
holder shall make available to the City all books, records, accounts, inventory and
access to onsite operations of persons engaged in cannabis delivery specific to the
business, including examination of both state and federal income tax returns, sales tax
returns, or other evidence documenting the finances pertaining to cannabis delivery in
the City for the purpose of verifying compliance with this Chapter and any other
applicable provision of this Code.
(N) Employees delivering cannabis or cannabis product or dispensing cannabis or
cannabis products on behalf of the permittee may not receive anything tangible from the
customer. All payments and tips for the cannabis or cannabis products should be
transmitted to the permittee electronically.
(0) A retailer shall seal each order of cannabis or cannabis products in tamper -
evident packaging before the individual conducting the delivery on behalf of the retailer
departs the licensed premises. A retailer shall include any promotional branded
merchandise of any licensee, or promotional materials inside the sealed, tamper -evident
packaging. Employees delivering cannabis or cannabis product or dispensing cannabis
or cannabis products on behalf of the permittee may not deliver or dispense promotional
54
branded merchandise of any licensee, or promotional materials not included in the
delivery package.
(P) A retailer or a licensed retailer's delivery employee shall not leave cannabis or
cannabis goods in an unattended motor vehicle outside of the retailer's hours of
operation. A retailer shall ensure that vehicles used for delivery of cannabis or cannabis
products are cleared of all cannabis or cannabis products before ceasing daily
operations.
§ 128.20.5 ADDITIONAL OPERATING REQUIREMENTS FOR DISTRIBUTION
(A) Distribution shall comply with State law at all times.
(B) Security plans developed pursuant to this Chapter 128 shall include provisions
relating to vehicle security and the protection of employees and product during loading,
unloading and in transit.
(C) A distributor 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.
(D) A distributor shall facilitate distributions with a technology platform owned by or
licensed to the distributor 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 distribution on behalf of the distributor
departed the licensed premises.
(2) The time that the individual conducting distribution on behalf of the distributor
completed distribution to the manufacture, cultivator or retailer or returned to the
licensed premises to store the cannabis and cannabis products.
(3) The time that the individual conducting distribution on behalf of the
manufacture, cultivator or retailer returned to the licensed premises.
(4) The route the individual conducting distribution on behalf of the distributor
traveled between departing and returning to the licensed premises to conduct the
distribution or transportation for storage.
(5) For each individual distribution transaction, the identity of the individual
conducting distribution on behalf of the manufacture, cultivator or retailer.
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(6) For each individual distribution transaction, the vehicle used to conduct
distribution on behalf of the manufacture, cultivator or retailer.
(7) For each individual distribution transaction, the identity of the individual
conducting distribution on behalf of the distributor.
(E) Each cannabis distributor permit holder shall maintain accurate books and
records, detailing all of the revenues and expenses of all cannabis distribution and
storage. On no less than an annual basis, or at any time upon reasonable request of the
city, each cannabis distributor permit holder shall file a sworn statement detailing the
distribution and storage of cannabis during the previous twelve-month period (or shorter
period based upon the timing of the request), provided on a monthly basis. The
statement shall also include gross sales for each month, and all applicable taxes paid or
due to be paid. If, upon written request from the City, each cannabis distributor permit
holder shall make available to the City all books, records, accounts, inventory and
access to onsite operations of persons engaged in cannabis distribution specific to the
business, including examination of both state and federal income tax returns, sales tax
returns, or other evidence documenting the finances pertaining to cannabis distribution
in the City for the purpose of verifying compliance with this Chapter and any other
applicable provision of this Code.
(F) Employees distributing cannabis or cannabis products on behalf of the permittee
may not receive anything tangible from the manufacture, producer or retailer. All
payments for the cannabis or cannabis products should be transmitted to the permittee
electronically.
(G) A distributor shall not leave cannabis or cannabis goods in an unattended motor
vehicle outside of the distributor's hours of operation. A distributor shall ensure that
vehicles used for delivery of cannabis or cannabis products are cleared of all cannabis
or cannabis products before ceasing daily operations.
§ 128.21 PROMULGATION OF REGULATIONS, STANDARDS, AND OTHER LEGAL
DUTIES
(A) Consistently with stated requirements of this Chapter 128 (and in particular not to
repeal or constructively repeal this Chapter 128), 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 128.
(B) Such regulations shall be published on the City's website.
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(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.
§ 128.22 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 128, the owner(s),
manager(s), and community relations representative from each cannabis retailer holding
a retail cannabis business permit issued pursuant to this Chapter 128 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 128. 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 128 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.
§ 128.23 FEES DEEMED DEBT TO CITY
The amount of any fee, cost, or charge imposed pursuant to this Chapter 128 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.
§ 128.24 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
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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 128.
(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.
§ 128.25 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 128 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 128 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 128 or under State or local law.
(C) The Chief Executive Officer or designee(s) charged with enforcing the provisions
of this Chapter 128 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.
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§ 128.26 CONCURRENT REGULATION WITH THE STATE
It is the stated intent of this Chapter 128 to regulate cannabis retail sales in the City
concurrently with the State.
§ 128.27 VIOLATIONS DECLARED A PUBLIC NUISANCE
Each and every serious material violation of the provisions of this Chapter 128 is hereby
deemed unlawful and a public nuisance.
§ 128.28 EACH VIOLATION A SEPARATE OFFENSE
Each and every violation of this Chapter 128 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 128 shall be subject to injunctive relief, any retail cannabis business permit
issued pursuant to this Chapter 128 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.
§ 128.29 CRIMINAL PENALTIES
Each and every serious material violation of the provisions of this Chapter 128 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.
§ 128.30 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. "
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SECTION 5. Title XI (Business Regulations) of the City Municipal Code is hereby
amended by adding Chapter 129 (Cannabis Retailer Tax) to read as follows:
CHAPTER 129 Cannabis Retailer Tax
129.01 Authority and purpose
129.02 Intent
129.03 Definitions
129.04 Tax imposed
129.05 Exemptions from the tax
129.06 Reporting and remittance of tax
129.07 Nonpayment of cannabis retailer tax; penalties and interest
established by ordinance
129.08 Administration of the tax
129.09 Appeal procedure
129.10 Constitutionality and legality
129.11 Apportionment
129.12
Audit and examination of records and equipment
129.13
Payment of tax does not authorize unlawful conduct
129.14
Other licenses, permits, taxes, fees, or charges
129.15 Deficiency determinations
129.16 Failure to report; nonpayment; fraud
129.17 Tax assessment; notice requirements
129.18 Tax assessment; hearing, application, and determination
129.19 Relief from taxes; disaster relief
129.20 Conviction for violation; tax not waived
129.21 Violation deemed misdemeanor
129.22 Remedies cumulative and not exclusive
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§ 129.01 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 129 shall be placed in the City's general fund and
be available for any lawful City expenditure.
§ 129.02 INTENT
The intent of this Chapter 129 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.
§ 129.03 DEFINITIONS
When used in this Chapter 129, 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 128 of the City Municipal
Code.
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"CANNABIS BUSINESS" has the same meaning as defined in Chapter 128 of the City
Municipal Code.
"CANNABIS PRODUCT' has the same meaning as defined in Chapter 128 of the City
Municipal Code.
"CANNABIS RETAILER TAX" or "TAX" means the tax due pursuant to this Chapter
129 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
128 of the City Municipal Code.
"CODE' means the City Municipal Code.
"CUSTOMER" has the same meaning as defined in Chapter 128 of the City Municipal
Code.
"DELIVERY' has the same meaning as defined in Chapter 128 of the City Municipal
Code.
"DISPENSARY' or "RETAILER" or "CANNABIS RETAILER" has the same meaning
as defined in Chapter 128 of the City Municipal Code.
"DISPENSING" or "RETAIL SALE(S)" has the same meaning as defined in Chapter
128 of the City Municipal Code.
"EMPLOYEE' has the same meaning as defined in Chapter 128 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;
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(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;
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(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 128 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 128 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 128 of the City Municipal
Code.
"PATIENT' or "QUALIFIED PATIENT' has the same meaning as defined in Chapter
128 of the City Municipal Code.
"PERSON" has the same meaning as defined in Chapter 128 of the City Municipal
Code.
"PERSON WITH AN IDENTIFICATION CARD" has the same meaning as defined in
Chapter 128 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).
§ 129.04 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
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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:
(1) 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.
§ 129.05 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.
§ 129.06 REPORTING AND REMITTANCE OF TAX
The Cannabis Retailer Tax imposed by this Chapter 129 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.
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(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.
§ 129.07 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 129 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 129 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.
§ 129.08 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 129.
(B) For purposes of administration and enforcement of this Chapter 129 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 129 as he or she deems reasonably necessary to implement or
clarify such provisions or aid in enforcement, including but not limited to:
(1) Provide forms to all taxpayers for the reporting of the Tax;
(2) Provide information to any taxpayer concerning the provisions of this Chapter
129;
(3) Receive and record all taxes remitted to the City as provided in this Chapter
129;
(4) Maintain records of taxpayer reports and taxes collected pursuant to this
Chapter 129;
(5) Assess penalties and interest to taxpayers pursuant to this Chapter 129; and
(6) Determine amounts owed and enforce collection pursuant to this Chapter
129.
§ 129.09 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 129 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 129 for service of notice of
hearing. Any amount found to be due shall be immediately due and payable upon the
service of the notice.
§ 129.10 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 129
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.
§ 129.11 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
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Administrator may promulgate administrative procedures for apportionment as he or she
finds reasonably useful or necessary.
§ 129.12 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 129 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.
§ 129.13 PAYMENT OF TAX DOES NOT AUTHORIZE UNLAWFUL CONDUCT
(A) The payment of a Cannabis Retailer Tax required by this Chapter 129, 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 129 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 129 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.
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§ 129.14 OTHER LICENSES, PERMITS, TAXES, FEES, OR CHARGES
Nothing contained in this Chapter 129 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.
§ 129.15 DEFICIENCY DETERMINATIONS
If the Tax Administrator is not reasonably satisfied that any statement filed as required
under the provisions of this Chapter 129 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 129.
§ 129.16 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 129 at any time:
(1) If the person has not filed a complete statement required under the provisions
of this Chapter 129;
(2) If the person has not paid the Tax due under the provisions of this Chapter
129;
(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
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the information contained in a statement already filed, or paid any additional amount of
tax due under the provisions of this Chapter 129; 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 129 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 129 and shall include the amount of any penalties or interest accrued on
each amount to the date of the notice of assessment.
§ 129.17 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 129; 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 129.17, 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.
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
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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 129 for giving notice of assessment.
§ 129.19 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 129.19, "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.
§ 129.20 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
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prosecution for any violation of the provisions of this Chapter 129 or of any State law
requiring the payment of all taxes.
§ 129.21 VIOLATION DEEMED MISDEMEANOR
Each and every material violation of the provisions of this Chapter 129 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.
§ 129.22 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 6. 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
§ 153.120.32 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.
§ 153.120.330 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 128, 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).
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(B) A cannabis retailer permitted pursuant Section 128.06 of this Code to 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.
(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 128.06 of this Code or which
transfers locations pursuant to Section 128.12 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 128, 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 7. 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."
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SECTION 8. 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 65864, 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, Distribution only, shall be
allowed a maximum of 40,000 square feet."
SECTION 9. The preamble of Sub -Subpart E (Security) of 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:
"(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 10. The definition of "Characterizing flavor" 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:
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"`CHARACTERIZING FLAVOR' means a taste or aroma, other than the taste or
aroma of tobacco, imparted either prior to or during consumption of a 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 related products. Characterizing flavor includes flavor
in any form, mixed with, or otherwise added to, any tobacco product or nicotine delivery
device, including electronic smoking devices."
SECTION 11. 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, e-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 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 12. The definition of "FLAVORED CANNABIS OR TOBACCO 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:
"`FLAVORED TOBACCO PRODUCT' means any tobacco product, which imparts a
characterizing flavor. There shall be a rebuttable presumption that a tobacco product is
a flavored tobacco product if a tobacco retailer or any employee or agent of a tobacco
retailer has: (i) made a public statement or claim that the tobacco product imparts a
characterizing flavor; (ii) used text and/or images on the tobacco retail product's labeling
or retail packaging to explicitly or implicitly indicate that the tobacco product imparts a
characterizing flavor; or (iii) taken action directed to consumers that would be
reasonably expected to cause consumers to believe the tobacco product imparts a
characterizing flavor."
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SECTION 13. 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 PARAPHERNALIA' means any item designed or marketed for the
consumption, use, or preparation of tobacco products."
SECTION 14. 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 PRODUCT' means:
(1) any product containing, made, or derived from 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, cigars, little cigars, chewing tobacco, pipe tobacco, and snuff;
(2) any electronic smoking device that delivers nicotine 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 product, whether or not sold separately or any of these contains
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 15. 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 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 tobacco products or tobacco paraphernalia
sold, offered for sale, exchanged, or offered for exchange."
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SECTION 16. 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 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 tobacco product or any
component, part, or accessory intended to impart or imparting a characterizing flavor in
any form, to any tobacco product or nicotine delivery device, including electronic
smoking devices. There shall be a rebuttable presumption that a tobacco product is a
flavored tobacco product if a tobacco retailer or any employee or agent of a tobacco
retailer has:
(1) made a public statement or claim that the tobacco product imparts a
characterizing flavor;
(2) used text and/or images on the tobacco product's retail labeling or retail
packaging to explicitly or implicitly indicate that the 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 tobacco product imparts a
characterizing flavor."
SECTION 17. This ordinance shall take effect thirty (30) days after its adoption by the
City Council.
SECTION 18. If any provision of this Ordinance or the application thereof to any person
or circumstance is held invalid, the remainder of the Ordinance and the application of
such provision to other persons or circumstances shall not be affected thereby.
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I
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK I
Iffelm 111111�`11 111111, UA
11 W-A
of the City Council on March 1, 2023. Thereafter, said Ordinance No. 1501 was duly
approved and adopted at a regular meeting of the City Council on April 5, 2023 by the
following vote to wit:
AYES: COUNCIL MEMBERS: AVILA, AYALA, DAMIAN, GARCIA, ESTRADA
Nyaff-�M I
Coll] 0 [a IN IT, I N kyj Ia.] 21
CHRISTOPHER SAENZ
CITY CLERK
01 =ao N A 7-11 Ra f0i ; 101 0.1 ih
MAR dP A. MARTI EZ
CITY ATTORNEY
we,