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(A) Transfer of a permit prohibited. A commercial cannabis permit is valid only as to the permittee. No permittee is allowed to transfer its commercial cannabis permit to any person except pursuant to the terms of this section. Except as permitted, any such transfer or attempted transfer shall be deemed to constitute a voluntary surrender of the commercial cannabis permit and such commercial cannabis permit shall thereafter be null and void, except as set forth in this chapter.
(B) Transfer of less than majority ownership. A permittee may transfer less than 50% ownership or control of a commercial cannabis permit with prior written approval of the City Manager after submission of all required application materials, payment of applicable fees as established by resolution of City Council, and a determination that the transferee(s) satisfy(ies) the requirements of this chapter such as to be entitled to the issuance of an original commercial cannabis permit.
(C) Change in name or form of business entity. A permittee may change the name or form of business entity without applying to the City Manager for a new commercial cannabis permit if the ownership of the new business entity is the same as the original business entity. Although a new commercial cannabis permit is not required, the permittee shall notify the city in writing of the change within 30 days of the change, and obtain an amendment to the original commercial cannabis permit and the commercial cannabis operational agreement after paying the applicable fee established by resolution of the City Council.
(D) Involuntary transfer.
(1) In the event of the death, incapacity, receivership, assignment for the benefit of creditors or other event rendering one or more permittees incapable of performing the duties associated with the commercial cannabis permit, the permittee or permittee's successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the City Manager in writing, within 14 calendar days of the occurrence of such event. To continue operations or cancel the existing commercial cannabis permit, permittee's successor in interest shall submit to the City Manager the following:
(a) The name of permittee's successor in interest;
(b) The name of the permittee(s) for which the successor in interest is succeeding;
(c) The phone number, mailing address, and email address of the successor in interest; and
(d) Documentation demonstrating that the permittee(s) is incapable of performing the duties associated with the commercial cannabis permit, such as a death certificate or a court order, and documentation demonstrating that the person making the request is the permittee's successor in interest such as a court order appointing guardianship, receivership, or a will or trust agreement.
(2) The City Manager may give the permittee's successor in interest written approval to continue operating the commercial cannabis business authorized by the commercial cannabis permit on the premises for a period of time specified by the City Manager, provided that the successor in interest shall be subject to all terms and conditions of the commercial cannabis permit, this chapter, any provision of the state cannabis laws, or any applicable local law or regulations, in the following instances:
(a) If the successor in interest or another person has applied for a commercial cannabis permit from the city for the premises and that application is under review;
(b) If the successor in interest needs additional time to destroy or sell cannabis; or
(c) At the discretion of the City Manager.
(E) No transfer for first 12 months. No permittee shall be allowed to transfer all or any portion of its commercial cannabis permit prior to 12 months after the permittee has opened and continuously operated its commercial cannabis business authorized thereunder.
(F) Commercial cannabis business name. 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 commercial cannabis permit.
(G) No transfer if permit suspended. A permit shall not be transferred pursuant to this section if the City Manager has notified the permittee that the commercial cannabis permit has been or may be suspended, revoked, or not renewed.
(H) No transfer of certificate of occupancy. A certificate of occupancy issued by the city's building division for a commercial cannabis business is valid only as to the permittee. No permittee is allowed to transfer the certificate of occupancy to any person. A new certificate of occupancy shall be required for any transfer or change otherwise permitted pursuant to this section that results in a change in the name of the permittee.
(I) Effect of failure to comply. Failure to comply with this section constitutes grounds for suspension or revocation of a commercial cannabis permit.
(J) No extension of permit. Any change or transfer permitted under this section shall not extend the term of a commercial cannabis permit.
(Ord. 3321 § 3, 2020)
(A) Permit nontransferable to other locations. A commercial cannabis permit issued under this chapter is valid only as to the premises identified in and approved by the commercial cannabis permit, and is therefore nontransferable to other locations except as authorized in this section. No permittee is authorized to relocate to other areas or units within a building structure without first obtaining written approval from the City Manager, regardless of any possessory interest or right of possession to such additional space.
(B) City Manager authority. No permittee shall change the location of the premises identified in and approved by the commercial cannabis permit until any such change of location is approved by the City Manager. As provided in § 5.36.040, the City Manager shall adopt a process (to include any necessary forms and procedures) to change the location of the premises approved in accordance with the commercial cannabis permit that includes, but is not limited to, the following:
(1) The permittee shall submit a change of location application to the city at least 90 days prior to the proposed change, along with any fees established by resolution of the City Council.
(2) The proposed location shall meet all of the requirements under this code, including, but not limited to, this chapter and Title 17.
(3) The proposed location shall be reviewed and evaluated using review criteria as referenced in § 5.36.070.
(4) The change in location of premises shall be subject to the prior review and approval by the City Manager and any and all other licenses, approvals, or permits required under state law and this code.
(C) Other approvals. All required state and city approvals, plan approvals, permits, and licenses must be obtained before causing, allowing, or licensing alterations to, and/or extensions or expansions of, the existing building(s), structure(s), or portions thereof on the premises approved as a location for a commercial cannabis business. Said alterations, extensions, or expansions shall comply with all applicable laws, regulations and standards, including, but not limited to, those concerning building safety and occupancy.
(Ord. 3321 § 3, 2020)
(A) Cannabis use on premises prohibited. No person shall consume cannabis and/or cannabis products on the premises of a commercial cannabis business. The permittee shall take reasonable steps to prevent the use and consumption of cannabis or cannabis products on the premises, which, at a minimum, shall include posting, in one or more clearly visible locations on the premises, a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis or cannabis products on the premises or in the areas adjacent to the commercial cannabis business is prohibited.
(B) No alcohol or tobacco on premises. No person shall cause or license the sale, dispensing, or consumption of alcoholic beverages or tobacco products on the premises of a commercial cannabis business.
(C) No visible cannabis. No cannabis or cannabis products shall be visible from the exterior of any premises issued a commercial cannabis permit, or on any of the vehicles owned or used as part of a commercial cannabis business.
(D) No outdoor storage or operations. Outdoor storage of cannabis or cannabis products is prohibited. All operations of the commercial cannabis business shall be performed within an enclosed building. Special events or temporary uses that would involve outdoor sales or display of cannabis or cannabis products are prohibited. Notwithstanding the foregoing, goods and materials used in the manufacturing, distribution or testing of cannabis or cannabis products, other than cannabis or cannabis products, may be stored outdoors at the rear of the premises of a manufacturer, distributor or testing laboratory provided that such goods and materials are properly secured behind fencing that provides adequate screening of such goods and materials from public rights-of-way and otherwise stored in compliance with the provisions of § 17.44.090 of this code.
(E) Track and trace requirements. Commercial cannabis businesses shall create and maintain an active account within the state's track and trace system, as required by the state cannabis laws, prior to commencing any commercial cannabis activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available.
(F) Compliance with all laws. All cannabis and cannabis products sold, tested, distributed or manufactured within the city shall be cultivated, manufactured, and transported only by persons who maintain full conformance with the state cannabis laws, and all other state regulations and local laws, rules and regulations. Except as otherwise specifically provided herein, this chapter incorporates all requirements and procedures set forth in the state cannabis laws. In the event of a conflict between the provisions of this chapter and the provisions of the state cannabis laws or any other applicable state or local law, the more restrictive provision shall apply. To the extent allowed by the state cannabis laws, the city shall have the right, but not the obligation, to enforce all applicable state cannabis laws
(G) Manager on premises. All commercial cannabis businesses shall have a manager on the premises at all times during hours of operation.
(H) Emergency contact. Each commercial cannabis business shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site manager or owner to whom emergency notice may be provided at any hour of any day.
(I) Age restriction. Persons under the age of 21 years shall not be allowed on the premises of a commercial cannabis business unless that business holds a valid M-License. Persons under the age of 21 years shall not be allowed to serve as a driver for a retailer. It shall be unlawful and a violation of this chapter for any person to employ an individual or otherwise allow an individual to volunteer at a commercial cannabis business who is not at least 21 years of age.
(J) Odor control. Each commercial cannabis business premises shall be designed and constructed to ensure that all odors generated by the business are contained on the premises. The premises should be designed so that demising walls are full height and extend to the bottom of the roof deck and joints are sealed unless the permittee can demonstrate to the satisfaction of the Building Official that the odor control system required by this subsection will adequately prevent odor migration into adjacent units or suites. Each commercial cannabis business shall have installed on the premises an odor control system prepared by a registered design professional specializing in such systems that is designed in accordance with the California Mechanical Code. At a minimum, the odor control system shall:
(1) Include makeup and process air for odor control, comfort and proper working conditions for employees of the commercial cannabis business, and to replenish exhausted air;
(2) Be designed to prevent cannabis odors from being detected outside of the premises, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common areas that are available for use by common tenants or the visiting public, or within other units or spaces attached to the same building;
(3) Be designed so as not to create a violation of other codes or interfere with other fire and life safety systems and devices, including, without limitation, systems for smoke and fire detection or suppression;
(4) Include a description of the maintenance to occur on the odor control system for optimum performance; and
(5) Include an air balance report and odor control certification prepared by the registered design professional that designed the system to be submitted to the Building Division for review and approval prior to issuance of a certificate of occupancy for the commercial cannabis business.
(K) Display of commercial cannabis permit and city business license. A copy of the state license, the commercial cannabis permit and the city business license issued to a commercial cannabis business shall be posted inside the premises of the commercial cannabis business in a location readily visible to the public and/or city personnel.
(L) Employee identification. Each and every employee of a permittee must, at all times when present on the premises of a commercial cannabis business or while conducting a delivery, wear an identification badge issued by the Corona Police Department containing the employee's photograph, age, the name of the permittee or commercial cannabis business for whom they are employed, and, if the employee is a manager, the employee's job title.
(M) Delaying or lingering prohibited. The permittee shall take reasonable steps to prevent individuals from delaying or lingering on the premises without a lawful purpose.
(N) Licenses and other approvals. Throughout the term of a commercial cannabis permit, the permittee shall maintain all applicable planning, zoning, building, fire and other applicable licenses, permits, and approvals from the relevant city department or division that may be applicable to the zoning district in which the commercial cannabis business is located, including, but not limited to, the requirements provided for in subsection (O) below.
(O) City zoning requirements. A commercial cannabis business shall be permitted to operate only in the zoning districts in which such use is expressly permitted by Title 17 of this code.
(P) Fees and charges.
(1) No person may operate a commercial cannabis business without timely paying in full all fees and charges required by this code or any other applicable state or local law, rule or regulation.
(2) Permittees authorized to operate a commercial cannabis business under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state and local law or under the commercial cannabis operational agreement for the commercial cannabis business. Each commercial cannabis business shall cooperate with city with respect to any reasonable request to audit the commercial cannabis business's books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes required to be paid during any period.
(Q) Training requirements. City reserves the right to impose training requirements on permittees, any permittee representative, and others involved in the operation of a commercial cannabis business, with the specific requirements to be determined and implemented through regulations adopted pursuant to § 5.36.040.
(R) Temporary cannabis events prohibited. Temporary cannabis events, as described in Chapter 5 of Division 42 of Title 16 of the California Code of Regulations as presently adopted or further amended, are prohibited in the city at all times.
(S) Signage. Signs for commercial cannabis businesses shall maintain compliance with Chapter 17.74 of this code.
(T) Live scan/background check. Every person listed as an owner, officer, manager, employee or volunteer of a commercial cannabis business shall submit fingerprints and other information deemed necessary by the Police Chief for a live scan/background check by the Corona Police Department prior to the issuance of a commercial cannabis permit or renewal of a commercial cannabis permit. No person shall be permitted to operate or work in a commercial cannabis business unless they have first cleared the live scan/background check, as determined by the Police Chief. A fee for the cost of the live scan/background check, as established by resolution of the City Council, shall be paid at the time the application for a commercial cannabis business permit is submitted no later than the time the fingerprints are submitted.
(U) Security systems.
(1) Video surveillance system. Each commercial cannabis business shall have a video surveillance system that complies with the requirements of § 5044 of Title 16 of the California Code of Regulations, as presently adopted or further amended, professionally installed and maintained on the premises. The video surveillance system shall be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the premises. The video surveillance system storage device and cameras shall be compatible with the city's software and hardware and shall be transmission control protocol/TCP capable of being accessed through the internet by the Corona Police Department upon request. In addition, the video surveillance system must be capable of providing remote and real-time, live access to the video surveillance footage if required by the Corona Police Department. Permittee shall maintain video surveillance recordings for a minimum of 90 days and shall make them available to the city for inspection or copy upon request.
(2) Alarm system. Each commercial cannabis business shall have a silent alarm system that complies with the requirements of § 5047 of Title 16 of the California Code of Regulations, as presently adopted or further amended, professionally installed and maintained on the premises.
(3) Monitoring. The video surveillance and alarm systems required by this subsection shall be monitored by an approved supervising station, which shall be a UL-listed central station alarm monitoring company, as required by the California Fire Code.
(4) Security plan. Each commercial cannabis business shall comply with all requirements of the security plan submitted with the application for a commercial cannabis permit for review and approval by the Police Chief.
(5) Live video and audio feed. The video surveillance and alarm systems installed on the premises shall be capable of allowing the alarm monitoring company to view and hear live video of the premises upon activation of the alarm that can be relayed to the Corona Police Department.
(6) Compliance with Chapter 15.52. In addition to the requirements provided for in this subsection (U), each commercial cannabis business shall maintain compliance with all requirements set forth in Chapter 15.52 of this code.
(V) Labor peace agreement. The permittee or owner of each commercial cannabis business shall enter into a labor peace agreement, regardless of the number of employees, and shall abide by the terms of such agreement.
(W) Security measures. Each permittee 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 premises of the commercial cannabis business.
(X) Power outages. Each commercial cannabis business shall have the capability to remain secure during a power outage and each permittee shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks remain engaged and are not released during a power outage. Required exit doors shall be manually operable during a power outage to ensure safe egress as required by the California Building and Fire Codes.
(Y) No liability for city. As a condition of approval of a commercial cannabis permit, an applicant shall be required to meet all of the following conditions before they can receive the commercial cannabis permit:
(1) Execute an agreement, in a form approved by the City Attorney, agreeing, to the fullest extent permitted by law, to defend (with counsel of city's choosing), indemnify and hold the city, its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, to the extent arising out of, pertaining to, or incident to the city's issuance of the commercial cannabis permit, the process used by the city in making its decision to issue a commercial cannabis permit or approve the operation of the commercial cannabis business, the operation of the commercial cannabis business or the prosecution of the applicant, permittee, or any permittee representative for violation of federal law or the state cannabis laws, including without limitation the payment of all settlement amounts, expert witness fees and attorney's fees and other related costs and expenses;
(2) Maintain insurance in the amounts and types that are acceptable to the City Council or City Attorney;
(3) Name the city as an additional insured on all required insurance policies;
(4) Agree to reimburse the city for any legal 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 or issuance of a commercial cannabis permit or the operation of the commercial cannabis business. 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.
(Z) Cannabis waste. No cannabis product shall be disposed of in its packaging. The permittee shall ensure that the cannabis is removed or separated from any packaging or container and that the cannabis is rendered unrecognizable and unusable prior to disposal.
(AA) Parking requirement. Chapter 17.76 shall apply to commercial cannabis businesses permitted by this chapter except that the number of required off-street parking spaces shall be 1 space/500 square feet of building area.
(BB) Violations of law not authorized. Nothing in this chapter shall be construed as authorizing or condoning any actions that violate federal, state or local law with respect to the operation of a commercial cannabis business.
(CC) Permittee responsible for compliance. It shall be the responsibility of the permittee, and the permittee representatives of a commercial cannabis business to ensure that the commercial cannabis business is, at all times, operating in a manner compliant with this chapter, the state cannabis laws, as well as all applicable federal, 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 a state license or a commercial cannabis permit.
(DD) Permittee responsible for actions of employees. The permittee shall be responsible for all violations of any applicable federal, state, and local laws and regulations committed by the permittee or any permittee representative, whether or not said violations occur within the permittee's presence. Violations by a permittee or any permittee representative may result in suspension, revocation or nonrenewal of the commercial cannabis permit.
(EE) Additional operating requirements. The City Manager may adopt other operating requirements or regulations as are determined to be necessary to protect the public health, safety and welfare. Each commercial cannabis business shall comply with such additional operating requirements or regulations.
(Ord. 3321 § 3, 2020)
(A) Hours of operation. The hours of operation for retailers and the retail area of storefront retail microbusinesses shall be 6:00 a.m. to 10:00 p.m. or as otherwise allowed by the state cannabis laws. The hours of operation shall be conspicuously posted near the public entrance of a storefront retailer.
(B) Age restriction signs. A storefront retailer or storefront retail microbusiness with an A-License shall conspicuously post and maintain a clear and legible sign, not less than eight inches by ten inches in size, at or near the public entrance of the storefront retailer or the retail area of the storefront retail microbusiness that states substantially as follows: "No persons under 21 years of age allowed inside these premises." A storefront retailer or storefront retail microbusiness with a M-License shall conspicuously post and maintain a clear and legible sign, not less than eight inches by ten inches in size, at or near the public entrance of the storefront retailer or the retail area of the storefront retail microbusiness that states substantially as follows: "No persons under 21 years of age allowed inside these premises, except persons who are at least 18 years of age are allowed with a current qualifying physician's recommendation for medicinal cannabis."
(C) Video surveillance signs. Storefront retailers and storefront retail microbusinesses shall conspicuously post and maintain a clear and legible sign, not less than 12 inches by 12 inches in size with letters not less than one inch in height, at or near the public entrance of the storefront retailer or the retail area of the storefront retail microbusiness that states substantially as follows: "All activities monitored by video camera."
(D) Doors to remain unobstructed during hours of operation. No door or access point within the premises of a storefront retailer or within the retail area of a storefront retail microbusiness shall be blocked or obstructed by interior or exterior security gates, grilles or shutters during the hours of operation for the commercial cannabis business. Interior security gates, grilles or shutters are permitted during non-operational hours only on the front main entrance to the premises.
(E) No permanent window bars. Permanent security or safety bars are prohibited and shall not be placed on any interior or exterior windows or doors on the premises of a storefront retailer or the retail area of a storefront retail microbusiness.
(F) Security guards. Storefront retailers and storefront retail microbusinesses shall hire or contract for on-site security services for the premises of the storefront retailer and for the retail area of the storefront retail microbusiness during the hours of operation pursuant to the requirements of the state cannabis laws. Additionally, each storefront retailer and storefront retail microbusiness shall hire or contract for at least one armed security guard during the hours of operation of the storefront retailer and the retail area of the storefront retail microbusiness.
(G) Panic buttons. Panic buttons that transmit a silent alarm to the alarm monitoring company referenced in § 5.36.170(U)(2) of this code shall be installed and maintained on the premises of a storefront retailer and the retail area of the storefront retail microbusiness behind the retail counter and any other locations on the premises where sales transactions take place.
(H) Exterior lighting. All off-street parking areas, paths of travel and building entrances to the premises of a storefront retailer and the retail area of the storefront retail microbusiness shall be illuminated during all hours of darkness with a lighting system that is directed downward and is designed to provide an average maintained horizontal illumination of one foot candle of light on the parking surface and/or walkway. The lighting shall be shown on the required diagram of the premises and shall be subject to review by the Police Chief during the commercial cannabis permit application process.
(I) Window coverings. No more than 25% of the windows of a storefront retailer or the retail area of storefront retail microbusiness shall be opaque or covered with opaque materials.
(J) View from public right-of-way. From a public right-of-way, there should be no exterior evidence that the premises are used as a non-storefront retailer except for any signage authorized by this chapter.
(K) No access by general public. The general public shall not be permitted to enter the premises of a non-storefront retailer.
(Ord. 3321 § 3, 2020)
(A) View from public right-of-way. From a public right-of-way, there should be no exterior evidence that the premises are used for manufacturing, distribution or as a testing laboratory except for any signage authorized by this chapter.
(B) No access by general public. The general public shall not be permitted to enter the premises of a manufacturer, distributor or testing laboratory.
(C) Systems and equipment. All systems and equipment used in manufacturing and testing laboratories shall be UL-listed and approved for the specific intended use of the permittee. Permittees that desire to install or use systems or equipment that are not UL-listed shall be required to submit a technical report prepared by a registered design professional for review and approval by the Building Official and the Fire Code Official prior to installation or use of such systems or equipment. Electrical equipment shall be listed and labeled by a Nationally Recognized Testing Laboratory approved by the Building Official.
(D) Hazardous materials plans. At the time of submittal of improvement plans for premises that will be used for manufacturing, distribution or as a testing laboratory, the applicant shall prepare and submit electronically, for review and approval by the Fire Code Official, a hazardous material inventory statement and a hazardous material management plan as required by Chapter 6.5 of Division 20 of the California Health & Safety Code and Chapter 8.40 of this code.
(E) Hazardous waste. The permittee for a commercial cannabis permit issued for manufacturing, distribution or testing laboratory shall ensure that any hazardous waste used, possessed, generated or stored on the premises as part of the commercial cannabis business is properly categorized, segregated, stored and disposed of in compliance with the state cannabis laws and all applicable state and local laws. The disposal of hazardous waste is under the direction and oversight of the Riverside County Environmental Health Hazardous Materials Branch.
(F) Backflow preventer. If required by the DWP General Manager as a condition of approval for a commercial cannabis permit issued for manufacturing, distribution or testing laboratory, the permittee shall ensure that a backflow preventer is installed and maintained on the premises to the satisfaction of the DWP General Manager.
(G) Wastewater pre-treatment requirements. If required by the DWP General Manager as a condition of approval for a commercial cannabis permit issued for manufacturing, distribution or testing laboratory, the permittee shall ensure that the commercial cannabis business complies with all wastewater pre-treatment requirements set forth in Chapter 13.08 of this code and any other applicable federal, state or local law, rule or regulation.
(H) Electric load study. If required by the DWP General Manager as a condition of approval for a commercial cannabis permit issued for manufacturing, distribution or testing laboratory that is located in the electric service area of the Department of Water and Power for the City of Corona, the permittee shall prepare and, at the time of submittal of improvement plans for the premises, submit for review and approval by the DWP General Manager a power load study for the commercial cannabis business.
(Ord. 3321 § 3, 2020)
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