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A. No permittee shall transfer ownership or control of a commercial cannabis business unless and until the proposed new owner submits all required application materials and pays all applicable fees, and independently meets the requirements of this chapter such as to be entitled to the issuance of an original Commercial Cannabis Permit. Prior to approval of such transfer, the City Manager shall consult with the Police, Fire, Community Development and Public Works Departments.
B. A proposed agreement to be duly executed between the permittee and the proposed new owner must also be submitted wherein the permittee assigns all duties, responsibilities, waivers, and/or obligations within the entitlements to the proposed new owner, and the proposed new owner assumes same. Same shall be presented as a proposed amendment to the originally, executed entitlements.
C. In the event of a substantial change in the ownership of a permittee business entity (changes that result in a change of fifty-one (51) percent or more of the original ownership), each new owner must be approved by the City Council after completion of a new or amended application process which may include evaluation under any applicable review criteria used and relied upon during the original review and selection process.
D. A permittee may change the form of business entity without applying to the City Council for a new Commercial Cannabis Permit, provided that either:
1. The ownership of the new business entity is the same as the original permit holder business entity; or
2. If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA, provided that the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the City permit application) of the original permittee entity are the same as the new business entity.
E. Although a new Commercial Cannabis Permit is not required in the two circumstances listed in this subsection D., the permittee shall notify the City in writing of the change within ten (10) calendar days of the change, and obtain an amendment to the original Commercial Cannabis Permit. Such change may require amendment to associated entitlements, which shall be reviewed upon receipt of such notice.
F. No permittee may avail themselves of the provisions of this section if the City Manager, or their designee, has notified the permittee that the Commercial Cannabis Permit has been or may be suspended, revoked, or is not being/has not been renewed.
G. Failure to comply with this section is grounds for revocation of a Commercial Cannabis Permit, and/or grounds to issue a notice to cure, pursuant to the provisions of the corresponding Use Permit.
H. Any attempt to transfer a Commercial Cannabis Permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit.
(Ord. 2552 §1, Ord. 2589 §2)
A. One or more proposed partners in a partnership granted a Commercial Cannabis Permit may make application to the City Manager, together with the fee established by the City Council, to amend the original application, providing all information as required for partners in the first instance and, upon approval thereof, the transfer of the interests of one or more partners to the proposed partner or partners may occur. If the permittee is a partnership and one or more of the partners should die, one or more of the surviving partners may acquire, by purchase or otherwise, the interest of the deceased partner or partners without effecting a surrender or termination of such permit. In such circumstance, the Commercial Cannabis Permit, upon notification to the City Manager, shall be placed in the name of the surviving partners upon proof of acquisition by the remaining partner(s) of the decedent’s interest. Prior to such action becoming final, City Manager shall consult with the Police, Fire, Community Development and Public Works Departments.
B. If the Commercial Cannabis Permit is issued to a corporation, stock may be sold, transferred, issued, or assigned to stockholders who have been named on the application regardless of the percentage of stock held by such person at the time of application. A person not listed on the application as a stockholder may acquire less than fifty (50) percent in a corporation without necessitating an application for amendment of Commercial Cannabis Permit due to change of ownership. If a person not listed on the application as a stockholder at any time acquires more than fifty (50) percent of the aggregate stock in a corporation, an amendment to the Commercial Cannabis Permit indicating the new ownership structure shall be obtained from the City. In the event that more than fifty (50) percent of the aggregate stock in a corporation is acquired by one person, without an amendment to the Commercial Cannabis Permit being obtained from the City, the permit shall be deemed terminated and void; provided, however, the proposed stock purchaser transferee may submit to the City Manager, together with the fee established by the City Council, an application to amend the original application providing all information as required for stockholders in the first instance under this chapter, and, upon approval thereof, the transfer may then occur.
C. All changes in ownership as described in this section must be submitted to the City within thirty (30) calendar days, along with any organizational documents reflecting said changes. Furthermore, said corresponding amendments to the corresponding executed entitlements must also be made, and reviewed and approved as addressed in the entitlements, or as required by the City’s policy concerning amendments to such entitlements. Failure to submit changes in ownership in violation of this section is grounds for revocation of the permit.
(Ord. 2552 §1, Ord. 2589 §2)
A. No permittee shall operate, conduct, manage, engage in, or carry on the business of a commercial cannabis business under any name other than the name of the commercial cannabis business specified in the permit.
B. The permittee shall advise the City Manager at least fifteen (15) calendar days prior of all changes of name or designation under which the business is to be conducted. The change of name or designation shall be accompanied by a non-refundable fee established by resolution of the City Council to defray the costs of reissuance of the Commercial Cannabis Permit, and to make any amendments to the corresponding executed entitlements in the new business name.
C. Said change in name must also be made in the form of an amendment to the corresponding executed entitlements, and reviewed and approved as outlined in the entitlements, or as required by the City’s policy concerning amendments to such entitlements.
(Ord. 2552 §1, Ord. 2589 §2)
A. No alterations to an approved facility may be undertaken without approval of the City Manager for businesses allowed by right under Title 19.
B. No alterations to an approved facility may be undertaken at a business issued a use permit or other entitlement issued as a discretionary approval (i.e., by Planning Commission or City Council) without approval of the issuing body.
C. The City Manager or their designee shall review proposed alterations to an approved facility to determine if such alterations are material to the permits, licenses, and entitlements issued for the facility. In the event that such alterations are material changes to the permits, licenses, and entitlements, such proposed alterations shall be considered by the person or body or bodies issuing the permits, license and entitlements. Material changes shall include, but not be limited to, increased square footage of interior space, decreased parking, decreased accessibility, changes to the security plan, and alteration of a previously submitted floorplan.
D. All required City approvals, plan approvals, and permits must be obtained before causing, allowing, or permitting alterations to, and/or extensions or expansions of, the existing building(s), structure(s), or portions thereof, approved as a location for a commercial cannabis business. Said alterations, extensions, or expansions shall comply with all applicable state and local laws, regulations and standards, including those concerning building and fire safety, as well as occupancy.
E. Undertaking alterations to an approved facility without appropriate approval in violation of this section shall be grounds for revocation of the permit.
(Ord. 2552 §1, Ord. 2589 §2)
A. Permittee shall notify the City on a form approved by the City Manager within fifteen (15) calendar days of any other change in the information provided in the application form or any change in status of compliance with the provisions of this chapter or resolutions or the Chico Zoning Ordinance relating to commercial cannabis businesses, including any change in the commercial cannabis business form of ownership or management members.
B. Such form shall be submitted along with a permit and appropriate fee, as adopted by Resolution of the City Council.
C. Any changes in the information provided by permittee in the Commercial Cannabis Permit application form, or any change in status of compliance in regard to the provisions of this chapter or Chapter 19.75 of the Chico Municipal Code, including any change in the commercial cannabis business form of ownership or management members without compliance with this section shall be grounds for revocation of the permit.
(Ord. 2552 §1, Ord. 2589 §2)
ARTICLE IV. OPERATIONAL REQUIREMENTS
A. It is unlawful for any person:
1. To sell, give, exchange, dispense or distribute cannabis or cannabis products for on-site consumption, use or sampling on any business premises.
2. To conduct a Cannabis Event in the City.
3. To consume or use cannabis or cannabis products, whether by smoking, vaping, inhaling, eating, drinking or any other means:
i. In, on or about the premises of any commercial cannabis business;
ii. In, on or about any publicly owned or operated property; any place open to, or accessible by the public; any place smoking is prohibited; or any place visible from any public place with normal unaided vision;
iii. In, on or about any other business, club, cooperative or commercial event, regardless if open to the public or only to members, ticket holders or event invitees;
iv. Any location where an entry or other fee is charged to attendees or to the host or where a thing of value or consideration is received or exchanged, directly or indirectly, for or related to the provision of cannabis.
B. Added artificial flavor prohibited. Retailers shall not sell cannabis products which contain an added characterizing flavor. For purposes of this chapter, “characterizing flavor” means a taste or aroma, other than the taste or aroma of cannabis, imparted either prior to or during consumption. This includes, but is not limited to, tastes or aromas relating to food or drink of any sort, including but not limited to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverages, herbs, or spices. Flavor agents consisting of terpenes of cannabis shall not be considered an added characterizing flavor. Such prohibition shall not apply to cannabis products which are manufactured as edible or topical products.
(Ord. 2552 §1, Ord. 2589 §2)
No person shall cause, allow, or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products on or about the premises of a commercial cannabis business, pursuant to and consistent with the prohibition of same by state law.
(Ord. 2552 §1, Ord. 2589 §2)
A. Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of eighteen (18) years. If the potential customer is over 18 but under 21 years old, retailer shall confirm the customer’s possession of a valid doctor’s recommendation and/or Health and Safety Code Section 11362.71 identification card (Medical Marijuana Card). For adult-use purchasers, retailers shall verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products.
B. Individuals must show a government-issued identification, and, in the case of purchases of medical cannabis, their physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71 in order to gain access into the retailer. The government-issued identification and, if applicable, doctor’s recommendation or cannabis card must also be shown at the point of sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.
C. Uniformed licensed security personnel shall be employed by permittee to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities.
D. Retailers may have readily available for sale on-site in the retail sales area of the retailer only that quantity of cannabis and cannabis products to meet the daily demand. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.
E. All restroom facilities used by customers shall remain locked and under the control of management.
F. Retailers authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of state law and this division.
1. The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.
2. Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.
3. No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.
4. All cannabis goods sold by a retail business shall be contained in child-resistant packaging.
5. Retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.
6. A retail licensee who is engaged in retail sales shall hire or contract for security personnel who are at least 21 years of age to provide security services for the licensed retail premises. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.
G. Access to retailer premises.
1. Access to the premises of a retail licensee/permittee shall be limited to individuals who are at least 21 years of age.
2. Notwithstanding Section 5.42.310(h)(1) individuals who are at least 18 years of age and in possession of a valid physician’s recommendation shall be granted access to the premises of a retail licensee/permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician’s recommendation.
H. Authorized sales. A retailer shall only sell adult-use cannabis and adult-use cannabis products to individuals who are at least 21 years of age. A retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least 18 years of age, if those individuals are in possession of a valid physician’s recommendation.
I. Limited access areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the licensee/permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the Chief of Police or their designee upon request.
J. Operating hours of the store front retailer permittees shall be limited to the hours of 8:00 a.m. through 9:00 p.m. Pacific Standard Time, seven days a week.
K. Store front/retail security requirements. All provisions incorporated within Section 5.42.320 of this chapter (Security Requirements), are directly applicable to and binding on all commercial cannabis businesses, including all store front/retail businesses.
L. Educational materials. Cannabis retailers shall provide written educational materials to all customers:
1. Regarding each product sold, with information regarding the name and type of product, instructions for use, and expected effects.
2. Regarding all edible cannabis products and cannabis concentrate products sold to a customer, which shall include:
i. information on safe storage and use of the product,
ii. warning against child access and exposure to the product, and
iii. warnings of potential side effects concerning brain development of individuals under the age of twenty-five years, and
iv. warnings of potential harm to pregnant women.
M. Training required. All employees who interact with public customers as well as all management staff complete training to ensure competency of employees for their assigned functions within the first year of the retailers’ first year of operation, and within one year of each employee’s hire date thereafter. The retailer shall maintain records showing completion of each employee’s training for a period of two years and provide such records to the City Manager or his/her designee upon request.
(Ord. 2552 §1, Ord. 2589 §2)
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