A. Following action by the State regulating authority issuing a provisional medical marijuana establishment registration certificate, the City Council shall evaluate whether to grant any proposed medical marijuana establishment that received a medical marijuana compliance permit a medical marijuana business license.
B. The City Council may issue a license for the following types of medical marijuana establishments:
1. Medical Marijuana Dispensary: A medical marijuana dispensary license allows the licensee to acquire, possess, supply and sell or dispense usable marijuana, edible marijuana products, marijuana infused products, and marijuana paraphernalia exclusively to State regulating authority-designated medical marijuana registry card holders.
2. Cultivation Facility: A cultivation facility license allows the licensee to acquire, possess, cultivate, package, label, deliver, transfer, transport, supply and sell wholesale marijuana and related supplies to a medical marijuana dispensary, medical marijuana production facility, or to other cultivation facilities only.
3. Independent Testing Laboratory: An independent testing laboratory license allows the licensee to independently test marijuana, edible marijuana products and marijuana-infused products that are to be sold at medical marijuana establishments operating in accordance with the requirements of Nevada Revised Statutes 453A.
4. Medical Marijuana Production Facility: A medical marijuana production facility license allows the licensee to acquire, process, manufacture, deliver, transfer, transport, package, and label usable marijuana and marijuana-infused products for sale at wholesale to marijuana dispensaries only.
C. A medical marijuana establishment license applicant may not exercise any of the privileges of a medical marijuana establishment license until the City Council approves the license and suitability of each person with an ownership interest in the medical marijuana establishment, and final pre-operational inspections have been conducted and all applicable inspection and license fees are paid.
D. Prior to issuance of a license, the licensee must designate one principal, all key employees and all management personnel to demonstrate competence in local regulations as evidenced by a written demonstration administered by the City Administrator.
E. Licenses shall expire one year from the date of issuance and a licensee must apply for annual review pursuant to section 3-14-17 of this chapter.
F. A medical marijuana establishment licensee shall provide and maintain at all times and at its own expense a certificate of insurance at amounts and terms required by this chapter prior to issuance or renewal of a license. Any failure to maintain insurance or provide proof of insurance is grounds for the City Administrator to suspend the license pending action taken by the City Council.
1. Minimum Amounts: The minimum amount which may be required by this chapter shall be one million dollars ($1,000,000.00) per occurrence, two million dollars ($2,000,000.00) general aggregate for bodily injury and property damage arising out of licensed activities and one million dollars ($1,000,000.00) products and completed operations aggregate, commercial automobile coverage in a minimum of one million dollars ($1,000,000.00) and excess liability in a minimum of three million dollars ($3,000,000.00).
2. Additional Insured: The City shall be named as an additional insured on all general liability, umbrella, and excess insurance policies as City, its elected officials, officers, agents, employees and volunteers are included as additional insured. All policies shall be primary over any other valid and collectible insurance.
G. Prior to issuance or renewal of a license, medical marijuana establishment licensees shall provide a surety bond as set forth in this section. The bond must be at the licensee's own expense and remain in force throughout the term of the license. The bond must cover licensee's obligation, for itself and its agents, employees, subcontractors, and the agents and employees of any subcontractors, to indemnify, defend, and hold harmless the City, and any of its elected or appointed officers, agents, or employees, from any and all claims, demands, actions, damages, decrees, judgments, attorney fees, costs, and expenses which the City, or such elected or appointed officers or employees, may suffer, or which may be recovered from, or obtainable against the City, or such elected or appointed officers or employees, as a result of, by reason of, or arising out of the use of the license, or the exercise by the licensee of any or all of the rights, privileges, permission, and authority conferred herein, or as a result of any alleged act or omission on the part of the licensee in performing or failing to perform any of its obligations. Such surety bond shall be in the amount of two hundred fifty thousand dollars ($250,000.00).
H. Prior to the issuance or renewal of a license, medical marijuana establishment licensees shall file, and must maintain, a bond from a surety company qualified and authorized to do surety business in the State of Nevada in the penal sum of fifty thousand dollars ($50,000.00). Such bond must be conditioned to be paid to the City for all license fees and penalties owing against such license.
I. Upon approval by the City Council of a medical marijuana compliance permit and the issuance of a provisional medical marijuana registration certificate by the State regulating authority, the City Administrator shall process a license application pursuant to chapter 1 of this title. The City Administrator shall not issue a temporary license for a medical marijuana establishment. (Ord. 707, 12-14-2017)