A. To the fullest extent permitted by local, state and/or federal law, the City of Chico shall not assume any liability whatsoever with respect to having issued a Commercial Cannabis Permit pursuant to this chapter, or otherwise approving the operation of any commercial cannabis business.
B. As a condition to the approval of any Commercial Cannabis Permit, Conditional Use Permit, and any other agreement, permit, or license between the City and applicant, the applicant shall meet the following conditions prior to issuance of the Commercial Cannabis Permit:
1. It must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend at the applicant’s sole cost and expense, and hold harmless the City of Chico, and its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses which arise out of their license, permit, or other entitlement to operate a commercial cannabis business related to:
i. The City’s drafting, adoption and passage of local ordinances, and related resolutions, policies, rules and regulations, allowing for commercial cannabis businesses and/or, if necessary in the future, making any zoning law amendment(s);
ii. The City’s issuance of the Commercial Cannabis Permit;
iii. The City’s approval and execution of a land use entitlement and/or Conditional Use Permit;
iv. The City’s decision to approve the operation of the commercial cannabis business or activity;
v. The process used by the City in making its decision to issue, approve or deny a permit, or handle any appeal of any issuance, approval or denial of a permit; and/or
vi. The alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents.
2. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City’s Risk Manager.
3. Reimburse the City of Chico for all costs and expenses, including but not limited to attorney fees and costs and court costs, which the City of Chico may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s Commercial Cannabis Permit, or related to the City’s approval of the applicant’s commercial cannabis activity, or the City’s approval of a Use Permit. The City of Chico may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.
C. The terms and provisions as enumerated in this section related to indemnification and limitation on the City’s liability shall be an explicit term of a Commercial Cannabis Permit and if applicable as a condition in the Use Permit, that an applicant and a permittee shall agree to in order for same to be valid.
(Ord. 2552 §1, Ord. 2589 §2)