(a) Purpose. The purpose and intent of this Section is to regulate the retail sale of adult-use and medicinal cannabis in order to promote the health, safety, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MAUCRSA.
(b) Definitions. For purposes of this Section, the following definitions shall apply unless the context clearly indicates otherwise. Unless otherwise defined herein, the terms in this Section shall have the same meaning as set forth in MAUCRSA and any rules promulgated pursuant thereto:
(1) “Applicant” or “Applicants” means the individual, entity, or any of their authorized agents or employees, applying for a Retail Permit or Conditional Use Permit.
(2) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
(3) “Cannabis Retail Overlay Zone” means the area bounded by Air Expressway to the north, Rancho Road to the south, Adelanto Street and Permain Street and to the west, and Mesa Linda Road to the east (Cannabis Retail Overlay Zone 1), and the area bounded by Violet Road to the north, Powerline Road to the south, Jonathan Road to the west, and Highway 395 to the east. The easterly boundary to Highway 395 is setback 600' from the highway. (Cannabis Retail Overly Zone 2).
(4) “CUP” means a Conditional Use Permit issued by the City in accordance with this Code.
(5) “Deliver,” “Delivering,” and “Delivery” shall be defined in accordance with the MAUCRSA, Business and Professions Code section 26001, and other applicable State laws.
(6) “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). (Bus. & Prof. Code, section 26000 et seq.)
(7) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code and other applicable State laws, by a medicinal cannabis patient in California who possesses a physician's recommendation. For purposes of this definition, “medicinal cannabis” also means “medical marijuana.”
(8) “Premises” means and pertains to a physical place of business, building, facility, office, or warehouse owned or operated by a retail permittee falling within the jurisdiction of the City of Adelanto.
(9) “Retailer” means a person authorized to engage in the retail sale of cannabis goods to customers.
A. “Non-Storefront Retailer” means a retailer that sells cannabis goods to customers only through delivery and with a Type 9 retail license from the State of California Department of Cannabis Control.
B. “Storefront Retailer” means a retailer that has a physical location where customers can purchase cannabis goods and with a Type 10 retail license from the State of California Department of Cannabis Control. A storefront retailer may also deliver Cannabis goods to customers.
(10) “Retail Permit” means a City permit to conduct retail sales of adult-use and/or medical cannabis in accordance with the terms and conditions of this Section and the conditions of approval for the permit. A Retail Permit will be designated as either a Non-Storefront Retail Permit or a Storefront Retail Permit.
(11) “Retail Permittee” means a person or entity that has been issued a Retail Permit by the City pursuant to the terms and conditions of this Section.
(c) Unauthorized Cannabis Retail Prohibited. The retail sale of cannabis within the City is prohibited without a valid Conditional Use Permit and Retail Permit as provided for in this Section.
(d) Conditional Use Permit. Retailers are conditionally permitted in the Cannabis Retail Overlay Zone. The provisions of chapter 17.130 of this code shall govern applications for a conditional use permit for cannabis retail sales. An applicant for a cannabis retail conditional use permit must possess a valid Retail Permit at the time the conditional use permit is approved.
(e) Retail Permit.
(1) Cannabis Retail Operating Standards. Cannabis retail within the City shall be in conformance with the following standards:
A. All retail sales of cannabis and cannabis products shall be in conformance with all applicable State laws and regulations.
B. Retailers shall only engage in sales and deliveries between the hours of 6:00 a.m. and 10:00 p.m.
C. All cannabis shall be kept in a secured manner during all business and nonbusiness hours.
D. Each retailer shall operate within a legal structure that is compliant with all applicable State and local laws.
E. Each retailer must pay all applicable taxes pursuant to all federal, State, and local laws. Each retail shall pay the City's Cannabis Excise Tax provided for retailers in AMC Chapter 3.60.
F. On-site smoking, ingestion, or consumption of cannabis or alcohol is prohibited at all non-storefront retailer premises. The building entrance shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming cannabis or alcohol on the premises, or in the vicinity of the non-storefront retailer, is prohibited. The term "premises" as used in this Subsection and the following Subsection includes the cannabis retail building, as well as any accessory structures and parking areas.
G. Smoking, ingestion and consumption of cannabis and cannabis products may occur on the premises of a storefront retailer if specifically permitted by the Retail Permit and the CUP for the premises, and subject to the following regulations.
1. Access to the area where cannabis consumption is allowed must be restricted to persons twenty-one years of age and older. The dispensary shall be responsible for checking identification and ensuring that underaged individuals do not enter.
2. Cannabis consumption shall not be visible from any place where persons under the age of twenty-one are permitted.
3. Cannabis consumption must occur only within the areas designated for consumption by the license.
4. The cannabis business must install and maintain in good working order an odor control system. Odors caused by the consumption of cannabis at the retail premises must not be detectable from any public place. The cannabis business shall submit and abide by an odor control plan approved by the city as a part of the retail permit application and approval process. The plan shall include the use of a Vapor Phase System utilizing an odor neutralizer, such as Cannabolish or a similarly effective technology.
5. Only cannabis and cannabis products purchased from the retailer during the same visit by the customer may be consumed within the retail premises. Individuals may not bring cannabis or cannabis products into a retailer for the purposes of consumption.
6. Cannabis and cannabis products that are only partially consumed on the premises of the dispensary must be repackaged in accordance with this Section prior to leaving the retail premises.
7. Representatives of the city, including, but not limited to, law enforcement officers, must be permitted to enter the premises, including all areas where consumption is allowed, at any time during the regular business hours of the retailer and/or whenever consumption is occurring on site.
H. Signage for each retailer shall be limited to name of the business only, shall be in compliance with the City's sign code. Signage shall not include any drug-related symbols.
I. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. A retailer shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages or operate a business that sells alcoholic beverages. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any retailer.
J. Physician services and medical cannabis recommendations shall not be provided at a cannabis retailer premises.
K. The building and premises in which any retailer is located, as well as the operations as conducted therein, shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City's business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the MAUCRSA. Compliance with all requirements of State law pertaining to adult-use and/or medical cannabis dispensing and delivery is also required.
L. A cannabis retailer shall not grow, cultivate, manufacture, or process cannabis, unless expressly and affirmatively authorized by State and local law. A cannabis retailer shall not be operated as a cannabis cultivation, manufacturing, distribution, transportation, or testing facility, unless expressly and affirmatively authorized by State and local law.
M. The operators of a cannabis retailer shall provide the City Manager or the City Manager's designee with the name, cell phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the retailer. Each cannabis retailer shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.
N. A cannabis retailer shall be operated in accordance with the conditions of approval associated with the applicable CUP for the parcel of real property upon which the cannabis retailer activities occur.
O. Retail permittees shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing cannabis products and theft of cannabis products from the retail premises.
P. A cannabis retail premises shall implement a security plan including the following measures:
1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least 120 concurrent hours of digitally recorded documentation in a format approved by the City Manager or the City Manager's 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, dispensing areas, delivery areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager's designee. Remote log-in information shall be provided to the City Manager, the City Manager's designee, and law enforcement to allow them to view the security camera images and recordings from their own facilities at any time. Any disruption in security camera images shall be cured expeditiously.
2. The cannabis retailer shall be secured with an alarm system that is operated and monitored by a reputable security company.
3. Entrances to all storage areas shall be locked at all times, and under the control of the retailer’s staff.
4. All cannabis shall be stored in a secured and locked space, and in a manner as to prevent diversion, theft, or loss.
5. The entrances and all window areas to storefront retailers shall be illuminated during evening hours. All retailers shall comply with the City’s lighting standards regarding fixture type, wattage, illumination levels, shielding, et cetera, and shall secure the necessary lighting approvals and permits as needed.
6. All windows on the building that houses the cannabis Retailer shall be appropriately secured.
7. Recordings made by the security cameras shall be made available to the City Manager, the City Manager's designee, and law enforcement upon verbal request—no search warrant or subpoena shall be needed to view the recorded materials.
Q. The City Manager, the City Manager's designee, shall have the right to enter the Retailer for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and the State. The City Manager, the City Manager's designee, shall maintain a log tracking the time and date of all inspections, the individuals requesting the inspection, and the result of each inspection. Individuals participating in any such inspection must take precautions and comply with standard safeguards and procedures in place at the facility regarding security, clean room/clean area access and anti-contamination measures.
R. A retailer shall notify the City Manager or the City Manager's designee within 24 hours of discovering any of the following:
1. Any discrepancies identified during routine inventory checks.
2. Diversion, theft, loss, or any criminal activity involving the Retailer or any agent or employee of the retailer.
3. The loss or unauthorized alteration of records related to medical cannabis, registered qualifying patients, primary caregivers, or retailer agents or employees.
4. Any other breach of security.
S. A retailer shall not dispense or deliver medicinal cannabis to any person without government-issued identification and adequate documentation demonstrating qualification to purchase, obtain, or possess medical cannabis. Physician's recommendations shall be verified by retailer’s staff prior to dispensing or delivering any medicinal cannabis to a qualified patient or primary caregiver, and at least every six months thereafter.
T. Each retailer shall do regular monthly inventories, and shall record and account for the total quantity of cannabis retained, sold, and delivered on or from the premises. These records shall be maintained for three years from the date created and shall be open to inspection by the City Manager, the City Manager's Designee, and law enforcement.
U. A retailer shall maintain medicinal cannabis customer records in a secure location within the City, available for inspection upon demand by the City Manager, the City Manager's designee, or law enforcement. Such records shall include, without limitation, a copy of the physician's recommendation and, if using a primary caregiver, a notarized written authorization from the patient to be represented by such primary caregiver.
V. During the delivery of cannabis, each vehicle driver shall carry a copy of the Retail Permit, a copy of the delivery request, a form of government-issued identification, and all other information required by State law. The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager's designee.
W. Prior to sale, cannabis products shall be labeled and placed in a tamper-evident package. Labels and packages of adult-use and/or medical cannabis products shall, at minimum, meet the requirements specified under Business and Professions Code Sections 26106 and 26120 and other applicable State laws.
X. All cannabis delivery vehicles shall:
1. Be equipped with, and utilize, a vehicle alarm system.
2. Have and utilize a direct communication system with the retailer.
3. Keep all cannabis in a secure and locked container.
4. Have an internal partition between the driver and all passengers from the cannabis storage containers that prevents access by the driver and passengers to all cannabis products from inside the vehicle.
5. Not carry more cannabis than allowed by State law and required to fulfill all immediate delivery requests.
Y. Retailers must be compliant in the State mandated Seed-to-Sale Tracking system METRC.
(2) Retail Permit Applications. All applicants wishing to obtain a Retail Permit from the City shall file an application with the City upon a form provided by the City and shall pay a Retail Permit application fee as established by the City. An applicant for a Retail Permit shall submit the following information with their application for a Retail Permit:
A. The address of the location for which the Retail Permit is sought, and number of delivery vehicles employed in the retail delivery of cannabis, if any. If delivery is proposed, a detailed delivery plan demonstrating how the applicant will comply with State and local delivery requirements must be included.
B. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, dispensing and delivery areas, lighting, signage, ingress and egress points and security camera locations. The site plan shall also show the odor control measures that will be installed and information regarding the effectiveness of those measures shall accompany the site plan.
C. A proposed security plan in compliance with the retail operating standards in this Section.
D. The name and address of the owner and lessor of the real property upon which the Retailer is proposed to be located. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a cannabis Retailer may be operated on the property.
E. Proof of the nature of the applicant’s organizational status, such as articles of incorporation, by-laws, organizational minutes, partnership agreements, and other documentation that may be required by the City to verify the ownership of the applicant.
F. Written authorization for the City Manager or the City Manager's designee to verify the information contained in the application and to conduct a background check on all “owners” (as defined by MAUCRSA) of the applicant.
G. Any such additional and further information as is deemed necessary by the City Manager or the City Manager's designee to administer this Section.
H. A statement in writing by the applicant that the applicant certifies under penalty of perjury that all the information contained in the application is true and correct.
(3) Retail Permit Issuance, Transfer, Renewal.
A. A Retail Permit will not be awarded to an applicant if:
1. The applicant made one or more false or misleading statements or omissions in the application or during the application process.
2. The proposed Retailer is not allowed by State or local law.
3. The applicant is not a legal representative of the retailer.
4. Any “owner” of the applicant has been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, distribution, transportation, or any such similar activity related to controlled substances, with the exception of cannabis-related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
5. The applicant has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
6. The application and accompanying materials demonstrates that the applicant would not comply with one or more of the requirements of this Section.
7. The cannabis retailer is proposed to be located at a premises within 600 feet of a school, public playground or park, child care or day care facility, youth center. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the cannabis retailer is, or will be located, to the nearest property line of those uses described in this Subsection.
B. A Retail Permit is subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the retail activities and to protect the public.
C. Before a Retail Permit will be issued to an applicant, Retail Permit fees must be paid to offset all foreseeable regulatory costs to the City for all retail related operations.
D. A Retail Permittee shall:
1. Carry liability insurance in the amounts and types set by the City Manager or the City Manager's designee, and name the City as an additional insured on all such insurance policies.
2. Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Retail Permit, the Retail Permittee's cannabis related activities, and any action taken by the Retail Permittee pursuant to this Section.
3. Defend the City, at the Retail Permittee's sole expense, in any action against the City or its agents, officers, or employees associated with the Retail Permit, the Retail Permittee's cannabis-related activities, or any action taken by the Retail Permittee pursuant to this Section. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the Retail Permittee of its indemnification and reimbursement obligations.
4. Reimburse the City for all costs, expenses, fees, and attorneys' fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the Retail Permit, the Retail Permittee's cannabis related activities, or any action taken by the Retail Permittee pursuant to this Section.
E. Subsequent to the issuance of a Retail Permit, the Retail Permittee shall report any change of ownership in the business to the City. A change of ownership that solely involves a previously approved owner no longer being an owner of the cannabis business shall be reported to the City within thirty days of the change. A change in ownership that involves adding a new owner to the previously approved ownership, or a transfer of the Retail Permit to a new ownership group, must be approved by the City in advance. All proposed new owners must submit to a background check. The City shall approve the change in ownership unless one or more of the grounds to deny a retail permit listed in Subsection A. above are present.
F. A Retail Permit shall expire and be null and void 12 months after issuance to the Retail Permittee unless properly renewed. Upon payment of the applicable Retail Permit fees, and passing any requisite retail inspections, a Retail Permittee that is fully operational and engaging in retail sales to the public shall be entitled to renew their Retail Permit, provided that the permittee maintained compliance with all City, State, and other applicable cannabis and business-related laws during the term of their permit, and subject to all prevailing laws at the time of renewal. A Retail Permittee that is not fully operational and engaging in retail sales to the public may apply for a renewal of their Retail Permit but a renewal shall only be approved if the City finds that there is good cause for the permittee’s failure to be fully operational.
G. To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any cannabis retail activities, or for the activities of any cannabis retailer.
(1) Any cannabis retail activities within the City in violation of this Section are hereby declared to be unlawful and a public nuisance.
(2) Any party who engages in any violation of this Section, or who owns, possesses, controls, or has charge of any parcel of real property in the City upon which a violation of the Section is maintained, shall be subject to the penalties and remedies provided by this Section.
(3) Any violation of this Section shall constitute a separate offense for each and every day the violation occurs or persists.
(4) Any person in violation of any provision of this Section shall be guilty of a misdemeanor and shall be punishable by a fine of up to $1,000 and up to six months imprisonment per offense per day.
(5) A. Any person in violation of any provision of this Section shall be punishable by an administrative fine of up to $1,000 per offense per day. Aggregate daily fines shall not exceed $10,000 per day if administrative fines are imposed immediately without prior issuance of a Notice of Violation.
B. If the City imposes fines immediately without prior issuance of a Notice of Violation, the property owner or their agent shall have five days in which to submit evidence to the City of the following: i) a tenant is in possession of the property; ii) the rental or lease agreement with the tenant prohibits commercial cannabis activity; and iii) the property owner or agent did not know the tenant was engaging in illegal commercial cannabis activity and no complaint, property inspection, or other information alerted the rental property owner or agent to the illegal commercial cannabis activity.
C. The City Manager or their designee must determine whether the evidence submitted by the property owner or rental agent proves items i, ii, and iii above to be true. If the City Manager or their designee so finds, the City will suspend the fines and provide the property owner or their agent with ten days to remedy the violations before fines are reinstated.
(6) Any violation of this Section or any other City or State cannabis law by a Retail Permittee is grounds for revoking the relevant Retail Permit. In addition, the City Manager or the City Manager's designee may revoke a Retail Permit if any of the following occur subject to a reasonable opportunity for the Retail Permittee to cure the deficiency during a period of no more than 30 days:
A. The City Manager or the City Manager's designee determines that the cannabis retailer has failed to comply with this Section, any condition of approval, or any agreement or covenant as required pursuant to this Section.
B. Ownership of the retailer is changed or transferred to a third party, without prior City approval.
C. The retailer fails to maintain 120 hours of security recordings.
D. The retailer fails to provide remote access to the security cameras to the City Manager, the City Manager's designee, or law enforcement, or fails to allow inspection of the security recordings, the activity logs, or of the premises by authorized City officials.
(7) Any decision regarding the revocation of a Retail Permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager's designee ("Hearing Officer"). Said appeal shall be made by a notice of appeal from the person appealing within 15 days from the date of the decision to revoke the Retail Permit. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the Retail Permit was improperly revoked. The Hearing Officer's decision shall be final and binding upon the City and the appellant.
(8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.
[Ord. No. 553, Section 5, 5/24/17; Ord. No. 557-A, Section 2, 5/24/17; Ord. No. 588, Section 8, 5/23/18; Ord. No. 602, Sections 19 - 21, 6/12/19; Ord. No. 650, Section 4, 5/8/24.]