PENDING ORDINANCES
ORDINANCE NO. 715
BILL NO. 2018 -08
   An Ordinance establishing the City of Ely’s recreational marijuana rules, setting fees and zoning requirements.         
 
   WHEREAS, N.R.S. 266.105 empowers the Ely City Council to pass ordinances necessary for the municipal government and the management of the affairs of the City, for execution of all powers vested in the City, and for making effective the provisions of Chapter 266 of the Nevada Revised Statutes; and
 
   WHEREAS, NRS 268.0033(1) authorizes the City Council to exercise those powers necessary to regulate matters affecting matters of local concern; and
   WHEREAS, the Ely City Council is establishing an ordinance setting forth regulations pertaining to all aspects of regulating recreational marijuana in the City of Ely pursuant to NRS 453D and NAC 453D.
   NOW, THEREFORE, The City Council of the City of Ely DOES CREATE TITLE 3, CHAPTER 15, AND ADDS THE SAME TO THE CITY ORDINANCES AS FOLLOWS: 
I.
ORDINANCE ENACTMENT
TITLE 3
Chapter 15
RECREATIONAL MARIJUANA ESTABLISHMENTS
3-15-1: Purpose and intent:
3-15-2: DEFINITIONS:
3-15-3: UNLAWFUL ACTS:
3-15-4: License required—Privilege—Issuance prohibited to    designated persons:
3-15-5: Finding of suitability:
3-15-6: Conditions applying to specific location/business types:
3-15-7: LICENSE APPLICATION CONTENTS:
3-15-8: CITY ADMINISTRATOR REVIEW:
3-15-9: PLANNING COMMISSION AND CITY COUNCIL ACTION ON APPLICATION:
3-15-10: MARIJUANA ESTABLISHMENT - LICENSES:
3-15-11: SECURITY REQUIREMENTS:
3-15-12: MARIJUANA ESTABLISHMENTS:
3-15-13: Change of location—Restrictions—Marijuana establishment origination fee:
3-15-14: License—Permit—Transfer of ownership and changes in business structure—Council approval required:
3-15-15: Closure or non-operational status—Responsibility to maintain use:
3-15-16: Issuance of moratorium:
3-15-17: Land use and location requirements—Compliance with title 12.
3-15-18: Marijuana establishments—Interconnectivity allowed:
3-15-19: Delivering off premises:
3-15-20: Intoxication on premises:
3-15-21: Distributing to minors—Establishment of policy—Copy on premises—Requirement to show:
3-15-22: Minor—Employment:
3-15-23: Suspension—Revocation—Limitation—Penalty:
3-15-24: Marijuana establishment responsible for the acts of employees:
3-15-25: Marijuana establishments subject to local government audit:
3-15-26: Public consumption of marijuana—Prohibition:
3-15-27: ANNUAL REVIEW OF LICENSE:
3-15-28: WORK CARD AND AGENT REGISTRATION CARD REQUIREMENTS:
3-15-29: EMPLOYMENT UNLAWFUL:
3-15-30: INVESTIGATION FEE:
3-15-31: CONFIDENTIAL INFORMATION:
3-15-32: FEES:
3-15-1: Purpose and intent:
A.    In November 2016, the voters of the state passed an initiative amending Article 4 of the Nevada Constitution to allow for the regulation of retail sales of marijuana in a manner similar to alcohol.  In 2017, the Nevada State Legislature passed, and the governor signed into law, Senate Bills 487, 344 and Assembly Bill 422, which further defined and clarified local government's role in the regulation of retail sales of marijuana, cultivation of marijuana, manufacturing of marijuana products and marijuana distributors in the state.
B.    While the council recognizes that the retail sale of marijuana has been approved by the voters of this state, there are many negative secondary effects that have been reported in communities that authorize the retail sale of marijuana, such as an increase in violent crimes, theft, traffic, noise, drug and gang activity, and firearms violations.  Therefore, the public health, safety, and welfare of the inhabitants of the city require the regulation of all businesses engaged in the business of marijuana sales, cultivation, infusion or testing.
C.    Federal law makes it unlawful to cultivate, possess, distribute, or dispense marijuana. However, on August 29, 2013, the United States Department of Justice ("DOJ") issued a memorandum advising that the DOJ would allow enforcement of state laws that authorize marijuana production, distribution, and possession to be handled primarily by state and local law enforcement regulatory bodies as long as the state and local governments enact laws that implement "strong and effective regulatory enforcement systems" to address the federal government's identified enforcement priorities. The following enforcement priorities were specified by the DOJ as being particularly important to the federal government:
1.    Preventing the distribution of marijuana to minors;
2.    Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels;
3.    Preventing the diversion of marijuana from states where it is legal under state law in some form to other states;
4.    Preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;
5.    Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
6.    Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use;
7.    Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and
8.    Preventing marijuana possession or use on federal property.
D.    Accordingly, in addition to protecting the public health, safety, morals, good order and general welfare of the inhabitants of the city and to safeguard the public, this chapter is intended to adequately address these enforcement priorities.
3-15-2: DEFINITIONS:
Unless the context otherwise requires, the scope of all words in this chapter shall be liberally construed in order to effectuate the purpose of this chapter, and, in particular, the following words shall have the meaning ascribed to them as follows:
CITY: Means the City of Ely, County of White Pine, State of Nevada.
COUNCIL: Shall mean the Ely City Council.
 
Community facility:  Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(1), and means a facility licensed to provide day care to children, a public park, a public playground, a public swimming pool, a center or facility the primary purpose of which is to provide recreational opportunities or services to children or adolescents, or a church, synagogue, or other building, structure, or place used for religious worship or other religious purpose.
 
Concentrated marijuana: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(2), means the separated resin, whether crude or purified, obtained from marijuana.
 
Consumer: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(3) and means a person who is 21 years of age or older who purchases marijuana or marijuana products for use by persons 21 years of age or older, but not for resale to others.
 
Dual licensee: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(5) and means a person or group of persons who possess a current, valid registration certificate to operate a medical marijuana establishment pursuant to chapter 453A of NRS and a license to operate a marijuana establishment under this chapter.
 
Excluded felony offense: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(6) and means a conviction of an offense that would constitute a category A felony if committed in Nevada or convictions for two or more offenses that would constitute felonies if committed in Nevada. “Excluded felony offense” does not include:
 
A criminal offense for which the sentence, including any term of probation, incarceration, or supervised release, was completed more than 10 years ago; or
 
An offense involving conduct that would be immune from arrest, prosecution, or penalty pursuant to chapter 453A of NRS, except that the conduct occurred before the effective date of chapter 453A of NRS (October 1, 2001), or was prosecuted by an authority other than the State of Nevada.
 
MARIJUANA:  Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(8), means all parts of any plant of the genus Cannabis, whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Marijuana” does not include:
The mature stems of the plant, fiber produced from the stems, oil, or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stems (except the resin extracted therefrom), fiber, oil, or cake, the sterilized seed of the plant which is incapable of germination; or
 
The weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products.
 
MARIJUANA CULTIVATION FACILITY: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(9), and means an entity licensed under this chapter and in possession of a valid Nevada State Marijuana Establishment License, issued by the Department of Taxation to cultivate, process, and package marijuana, to have marijuana tested by a marijuana testing facility, and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers.
 
Marijuana distributor: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(10) and means an entity licensed under this chapter and in possession of a valid Nevada State Marijuana Establishment License, issued by the Department of Taxation to transport marijuana from a marijuana establishment to another marijuana establishment.
 
Marijuana establishment: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(11) and means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, a marijuana distributor, or a retail marijuana store.
 
Marijuana product manufacturing facility: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(12) and means an entity licensed under this chapter and in possession of a valid Nevada State Marijuana Establishment License, issued by the Department of Taxation to purchase marijuana, manufacture, process, and package marijuana and marijuana products, and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.
 
Marijuana products: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(13) and means products comprised of marijuana or concentrated marijuana and other ingredients that are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.
 
Marijuana paraphernalia: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(14) and means any equipment, products, and materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, preparing, testing, analyzing, packaging, repacking, storing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.
 
Marijuana testing facility: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(15) and means an entity licensed under this chapter and in possession of a valid Nevada State Marijuana Establishment License, issued by the Department of Taxation to test marijuana and marijuana products, including for potency and contaminants.
 
Process: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(16) and means to harvest, dry, cure, trim, and separate parts of the marijuana plant by manual or mechanical means, such as sieving or ice water separation, but not by chemical extraction or chemical synthesis.
 
Public place: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(17) and means an area to which the public is invited or in which the public is permitted regardless of age. “Public place” does not include a retail marijuana store.
 
Retail marijuana store: Has the meaning ascribed to it in Nevada Revised Statutes 453D.030(18) and means an entity licensed under this chapter and in possession of a valid Nevada State Marijuana Establishment License, issued by the Department of Taxation to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities and retail marijuana stores, and to sell marijuana and marijuana products to consumers.
 
EDIBLE MARIJUANA PRODUCTS: Has the meaning ascribed to it in Nevada Revised Statutes 453D.101 and means products that contain marijuana or an extract thereof and are intended for human consumption by oral ingestion; and are presented in the form of foodstuffs, extracts, oils, tinctures and other similar products.
 
OWNERSHIP INTEREST: Means any principal, person, beneficial owner, and individual persons holding any ownership or financial interest for each business entity including all businesses organized under or governed by title 7 of the Nevada Revised Statutes including but not limited to private corporations, publicly-traded corporations, close corporations, foreign corporations, limited liability companies, partnerships, limited partnerships, and professional corporations ("business entities").  Ownership interest in the context of publicly traded corporations shall include all corporate officers and members of any board of directors, and also includes individuals with ten percent (10%) or more ownership or financial interest in the publicly traded corporation. To the extent that a business entity has an ownership interest in a medical marijuana establishment, the term "ownership interest" shall also include all individuals with an ownership interest in such business entity. It is the intent of this chapter that all individuals with a direct or indirect ownership interest in a medical marijuana establishment be disclosed and be subject to the requirements of this chapter
.
STATE REGULATING AUTHORITY: Means the State of Nevada Department of Taxation.
3-15-3: UNLAWFUL ACTS:
A.    It shall be unlawful for any person to operate any marijuana establishment in the City without a valid Marijuana Establishment License issued by the State of Nevada and a license issued pursuant to this chapter and operating in compliance with any and all applicable State laws and this Code.
B.    It shall be unlawful for any person to provide marijuana products to a marijuana establishment within the City without a valid Marijuana Establishment License issued by the State of Nevada and a license issued by the City.
C.    It shall be unlawful for any licensed marijuana establishment located within the City to accept for sale any marijuana from any person who has not obtained a valid Marijuana Establishment License issued by the State of Nevada and a license issued pursuant to this chapter for the sale of such products.
D.    It shall be unlawful for a person to engage in any form of business or commerce involving the cultivation, processing, manufacturing, storage, sale, distribution, transportation or consumption of marijuana other than those forms of businesses and commerce that are expressly contemplated by Nevada Revised Statutes 453D and any administrative rules duly adopted by the Department of Taxation.
E.    It shall be unlawful for any person to sell marijuana at a licensed retail marijuana store at any time other than between the hours of eight o'clock (8:00) A.M. and eight o'clock (8:00) P.M. daily.
F.    It shall be unlawful for any retail marijuana store to sell marijuana without complying with State requirements concerning use of the electronic verification system maintained by the State regulating authority.
G.   It shall be unlawful to have more than one retail marijuana store located within the incorporated City limits, until the population of the incorporated city reaches 20,000 residents, at which time a second retail store may apply for licensing.
3-15-4:  License required—Privilege—Issuance prohibited to designated persons:
It shall be unlawful for any person to operate, conduct or carry on any marijuana establishment as described in this chapter within the city without first obtaining and thereafter maintaining a marijuana establishment license as herein required and paying the fee(s) as set forth by resolution as authorized in 3-15-32.
B.   Notwithstanding this provision, marijuana is currently classified as a Schedule I drug under the Controlled Substances Act ("CSA") 21 U.S.C. Section 841(a)(1), and federal law makes it unlawful to manufacture, distribute, dispense or possess any controlled substance.
C.   All marijuana establishments as defined in this chapter shall be licensed and controlled so as to protect the public health, safety, morals, good order and general welfare of the inhabitants of the city and to safeguard the public.
D.    The right to obtain and maintain a license under this chapter is a privilege and the operation of such marijuana sales, cultivation, infusion or testing facilities is a privileged business subject to regulations.  The license may be revoked for violation of the conditions of this chapter, including those conditions set forth in section 3-15-23; the laws of the state; other ordinances of the city; the DOJ enforcement priorities cited above; or for any other cause deemed sufficient by the council in the exercise of its sole discretion.
E.    In conformity with the policy of this chapter, the following persons are declared unqualified to hold a marijuana establishment license under the provisions of this chapter:
1.    A person whose state registration certificate, license issued under the provisions of this chapter, or those ordinances or statutes of any other agency lawfully engaged in the licensing or regulation of medical marijuana dispensing or the retail sale of marijuana, cultivation, infusion or laboratory services, has been suspended or revoked for cause;
2.    A person, who at the time of renewal of any license issued under this chapter, would not be eligible for such license upon a first application;
3.    A partnership, limited partnership, association or limited liability company, unless all of the partners, managers and members of such partnership, limited partnership, association or limited liability company that has been found suitable under the provisions of 3-15-5;
4.    A corporation, unless all of the owners, officers, and directors, if any, have been found suitable under the provisions of 3-15-5;
5.    A person who does not beneficially own the premises for which a license is sought or does not have a lease which cannot be verified thereon for the full period for which the license is to be used;
6.    Any employee of the city;
7.    Any business entity owned or partially owned by a partnership, limited partnership, association, limited liability company, or corporation whose headquarters are not in the United States, or by an individual who is not a legal United States citizen or whose legal residence is not the United States;
8.    Any business entity with an officer or a board member or director who is not a legal United States citizen and whose legal residence is not the United States; or
9.    Any publicly traded company.
F.    For the purposes of this chapter only marijuana establishments that will cultivate, dispense, infuse/produce edible marijuana products or provide laboratory testing at an approved location pursuant to title 12 may be licensed as a marijuana establishment.
G.    A marijuana establishment license will not be issued to an applicant that has not had the appropriate individuals, set forth in this chapter, undergo a background investigation and finding of suitability pursuant to section 3-15-5.  In its discretion, the City Council may accept an equivalent background investigation conducted by the Nevada Department of Taxation or another government entity or agency.
H.    No marijuana establishment license shall be issued to an applicant unless its ownership, irrespective of corporate or business structure can ultimately be traced to ownership or control by a natural person or persons, at least one of whom has been a Nevada resident for at least one year prior to the date of the application.
3-15-5:   Finding of suitability:
In addition to the requirements of 3-15-5, any individual applicant or individual who is a partner, owner, officer, board member, or director must be found suitable by the director and meet the following requirements:
A.    Such individuals must be 21 years or older;
B.    Such individuals shall not have been convicted of a felony or any crime of moral turpitude as may be further defined in 3-15-29 and must provide an identity history summary check provided by the Federal Bureau of Investigation or similar background check document deemed sufficient by the City Administrator at the cost of the applicant;
C.    Such individuals be United States citizens and must have established legal residence in the United States at least one year prior to the date of the application;
D.    Such individuals shall not have had a license, issued or renewed under the provisions of this chapter or those ordinances or statutes of any other agency lawfully engaged in the licensing or regulation of marijuana sales, cultivation, infusion or laboratory services, that has been suspended or revoked for cause; and
E.    Such individuals must not be employees of the city.
3-15-6:   Conditions applying to specific location/business types:
 
A.    General requirements for all marijuana establishments except independent testing laboratories:
1.    Marijuana establishments must have at least one responsible key employee on the licensed premises to act as the establishment's agent at all times when employees or customers are present on the premises.
2.    Marijuana establishments must make available to the City Administrator at any time a list of all employees authorized to be on premises, which list must include the employees designated as key employees.
3.    All marijuana establishment employees must have on their person a valid marijuana establishment agent identification card issued by the state at all times when at the marijuana establishment location.
4.    All independent contractors, maintenance and business professionals allowed access to a marijuana establishment where the general public does not have access must be logged and given visitor identification.  This identification must be worn and visible at all times when the visitor is on the premises of the marijuana establishment.
5.    A marijuana establishment may not allow the use, smoking, ingestion or consumption of any marijuana, edible marijuana product, or marijuana-infused product on the licensed premises.
6.    Any theft of $250.00 or more in retail value of marijuana seedlings, clones, plants, or other plant materials, extract, marijuana-infused product, or other item containing marijuana must be reported to the White Pine County Sheriff’s Office and the City Administrator orally immediately and in writing within 24 hours of knowledge of the alleged theft.
7.    To prevent unauthorized access to marijuana at a marijuana establishment the establishment must be in compliance with all security requirements adopted by the department of taxation as set forth in NRS 453D.
8.    Marijuana establishments must develop and enforce policies and procedures:
a.    That restrict access to the areas of the establishment where the general public does not have access that contain marijuana or marijuana-infused products, to individuals authorized to be in that area only;
b.    That provide for the identification of individuals authorized to be in the areas where the general public does not have access of the establishment that contain marijuana or marijuana-infused products;
c.    That prevent loitering;
d.    For conducting electronic monitoring; and
e.    That prevents the distribution of marijuana to minors.
9.    Marijuana establishments must have an approved plan to remove and destroy all waste generated from the cultivation, infusion or dispensing of marijuana from the location. Disposal of waste must meet all state and federal guidelines.  Waste must be maintained in a secure location until removal from the location.  Waste must be rendered unusable by grinding and incorporating the marijuana waste with non-marijuana waste, such that the resulting mixture is at least 50 percent non- marijuana waste.  This requirement shall be required of all businesses that are licensed pursuant to Title 3 of this code that may come into possession of unwanted marijuana products.
10.    Marijuana establishments are required to use an inventory control system compliant with NRS Chapter NRS 453A, 453D, and state department of taxation regulations to track all inventories that includes marijuana clones, marijuana plants, harvested marijuana product for dispensing, edible or infused items or harvested marijuana product sent to independent testing laboratories.
 
11.    Marijuana establishments are required to comply with all standards set forth by the Department of Taxation, national, state and local building codes and the state Fire regulations prior to conducting business.
12.    All officers, board members, directors, and employees of the marijuana establishment shall be required to obtain and maintain a valid marijuana establishment agent registration card in compliance with NRS Chapter 453A, 453D, and state department of taxation regulations.
B.   Retail marijuana stores.
1.    A retail marijuana store shall only be operated in conjunction with an existing medical marijuana establishment at the same address, and must be licensed by the same license holder as a medical marijuana dispensary licensed pursuant to City Code 3-14-9.
2.    A retail marijuana store shall have a lobby waiting area at the entrance to the dispensary to receive clients, and a separate and secure designated area for dispensing marijuana to customers.  The primary entrance shall be maintained clear of barriers, landscaping and similar obstructions so that it is clearly visible from public streets, sidewalks or site parking areas.
3.    If employing private security the security provider must be licensed in accordance with this title and NRS Chapter 648.
4.    Retail marijuana stores must display in the lobby waiting area a placard no smaller than 18 inches tall by 20 inches wide that states the following:
a.    Federal law makes it unlawful to possess and consume marijuana products;
b.    Marijuana products cannot be transferred, shared or gifted to any other individual;
c.    Do not operate heavy machinery or automobiles while under the influence of marijuana;
d.    Marijuana has intoxicating effects and may be habit forming;
e.    There may be health risks associated with consumption of marijuana;
f.    Marijuana should not be used by women who are pregnant or breast feeding; and
g.    Marijuana should be kept in a secure location and out of reach of minors and pets.
5.    Except as otherwise provided in this subsection, it shall be unlawful for any person to advertise any marijuana, edible marijuana product or marijuana-infused product anywhere in the city where the advertisement is visible to members of the public from any street, sidewalk, park or other public place, including advertising utilizing any of the following media:
a.    Any hand-held, human signage or other portable sign;
b.    Any handbill, leaflet or flier directly handed to any individual, deposited, fastened, thrown, scattered, cast or placed in a public place, left upon a motor vehicle, or posted upon any public property, right-of-way or private property without the consent of the property owner;
c.    Any sign mounted or displayed on a vehicle;
d.    Any free promotional materials.
6.    Retail marijuana stores are prohibited from offering for sale the following:
a.    Any alcoholic beverage, liquor or spirits as defined in title 3, chapter 2;
b.    Any products containing nicotine;
c.    Any non-marijuana food or beverages;
d.    Any personal care items except those sold in compliance with NRS 453A;
7.    Any retail marijuana store offering for sale non-marijuana based products, including but not limited to, clothing, souvenirs, hats or keychains must comply with state laws and regulations, including but not limited to NRS 453D and any regulations set forth in the Nevada Administrative Code;
8.    Any paraphernalia offered for sale must be designed for individual use only;
9.    A marijuana dispensary is limited to ten percent of retail space for paraphernalia, not to include the lobby area.
10.    Prior to conducting any sales in accordance with subsections 7. and 8. of subsection B. of this section a license must be obtained pursuant to title 3, chapter 1 and thereafter be maintained in order to offer sales of the specified items.
11.    All marijuana products sold must be enclosed in childproof packaging designed and constructed consistent with state law.
C.    Marijuana cultivation facilities.
1.    Cultivation areas of the establishment must be in compliance with regulations set forth in NRS Chapter 453A, 453D, and state department of taxation regulations.  The city reserves the right to enforce these sections and may levy sanctions to a marijuana establishment based on non-compliance that may include citations and fines, civil penalties, and suspension and revocation of licensure pursuant to 3-15-23.
2.    Areas designated for deliveries from suppliers or couriers must be separated from cultivation areas by floor to ceiling walls and locking doors.
3.    Marijuana establishments are encouraged to use the most efficient process for the conservation of water resources.
D.    Marijuana product manufacturing facility.
1.    Production of edible and infused marijuana products must be in compliance with NRS Chapter 453A, 453D, and state department of taxation regulations.  The city reserves the right to enforce these sections and may levy sanctions to a marijuana establishment based on non-compliance that may include citations and fines, civil penalties, and suspension and revocation of licensing pursuant to3-15- 23.
2.    Areas designated for deliveries from suppliers or couriers must be separated from production areas by floor to ceiling walls and locking doors.
3.    Except as otherwise provided in this subsection, use of flammable gases including, but not limited to, butane and propane are prohibited for the extraction of oils from marijuana plants.  Extraction processes utilizing flammable gasses may be permitted upon approval of the fire chief.  These systems, processes and processing areas must, at a minimum:
a.    Be located in premises that are verified by an independent, qualified industrial hygienist and a Nevada licensed engineer as safe and in compliance with all applicable codes;
b.    Utilize listed or approved closed-loop extraction systems;
c.    Ensure all flammable gas/liquid transfers shall take place within a chemical fume hood having electrical system classified for a hazardous atmosphere in accordance with the most recent edition of National Fire Protection Association (NFPA) 45, Standard on Fire Protection for Laboratories Using Chemicals, spray booth or spay room complying with the Henderson Fire Code; and
d.    Utilize flammable gas monitoring that sound local alarms and close gas valves at levels greater than 25 percent of lower explosive limit (LEL).
4.    Other extraction processes involving flammable gasses or hazardous materials as defined in state law may be permitted upon approval of the fire chief and approval of the associated use permit by city council.
5.    Solvents fit for human consumption shall be permitted in the extraction process.
6.    Production of edible and infused marijuana products must be in compliance with all current and future standards set by the Nevada Department of Taxation and the Nevada Division of Public and Behavioral Health for preparation and handling of items meant for human consumption.
E.    Independent testing laboratories.  Independent testing laboratories for marijuana products must be in compliance with NRS Chapter 453A, 453D, and state department of taxation regulations. The city reserves the right to enforce these sections and may levy sanctions to a marijuana establishment based on non-compliance that may include citations and fines, civil penalties, and suspension and revocation of licensing pursuant to 3-15-23.
3-15-7: LICENSE APPLICATION CONTENTS:
Whenever a person desires to open, keep, carry on or conduct any marijuana establishment in the city, or engage in the business thereof, such person must make application in writing to the City Administrator to obtain a marijuana establishment license.  The application must be submitted for purposes of receiving written approval on distance and zoning requirements pursuant to title 12 by the Planning Commission and the City Council.  A separate application must be submitted for each license for a marijuana establishment even if located in the same facility.  The application for each marijuana establishment license must include:
A.    A complete business application per chapter 1 of this title for the applicant and each person with an ownership interest in the proposed marijuana establishment.
B.    A detailed personal and business financial history per chapter 1 of this title for each person with an ownership interest in the proposed marijuana establishment, along with the following:
1.   Documentation from an in-state or out-of-state financial institution which demonstrates that the applicant has liquid assets as required by NRS 453A.322, NRS Chapter 453D, and state department of taxation regulations, which are unencumbered and can be converted within 30 days and the source of such assets.
2.    Evidence of the amount of taxes paid to, or other beneficial financial contributions made to, the state and its political subdivisions within the last five years by the applicant or the persons who are proposed to be owners, officers, board members or directors of the proposed marijuana establishment.
3.    Proposed organizational structure that lists all owners, officers, board members and directors by name and their percentage of ownership.
C.       A one-time, nonrefundable initial application processing fee of five thousand dollars ($5,000.00).
D.    A complete special use permit application, all applicable fees pursuant to title 12 of this Code, and all required accompanying documents.
E.    A complete description of the products and services to be produced or sold by the marijuana establishment.
F.    A complete and accurate copy of the application and all accompanying documents to be filed pursuant to Nevada Revised Statutes 453D.210 including, but not limited to:
1.    All proposals for operations, business plans, attestations, financial documentation, and required tax reports;
2.    All documents detailing proposed organizational structure, all narratives, and resumes;
3.    All documentation required concerning the adequacy of the proposed building and construction plans with supporting details in the form specified by the City building official and the payment of all required review and inspection fees;
4.    All testing, transportation, policy and operations manuals, financial plan, and an environmental plan.
5.    Business plan with a description of the electronic verification system and inventory control system to include seed to sale tracking capabilities of the proposed marijuana establishment consistent with state law.
6.    Staffing plan that will insure proper management and education of employees.
7.    Detailed budget for the proposed establishment, including pre-opening, construction and first year operating expenses.
8.    Operations manual that demonstrates compliance with all state and local laws and ordinances.
9.    A plan to minimize the environmental impact of the proposed establishment.
10.    Background information/resume highlighting any previous experience at or operating other businesses or non-profit organizations, including educational achievements and demonstrated knowledge of the marijuana industry.
11.    The identity of an owner who has maintained a legal residence in Nevada for at least one year prior to the date of the application.
12.    Any additional information deemed necessary by the City Administrator, Planning Commission or City Council.
 
G.    A security plan, including a depiction of the location and configuration of security cameras, indicating how the applicant intends to comply with the requirements related to monitoring and securing the licensed premises as required by this chapter to be reviewed and approved by the White Pine County Sheriff’s Office.
H.    An accounting plan that includes how sales and inventory will be tracked on a daily, weekly, and monthly basis, and how this information will be stored and safeguarded.
I.    A sign and advertising plan, including all proposed interior signage.
J.    A copy of all contracts, proposed contracts for consulting, management, renting or leasing the premises for the proposed marijuana establishment, including written documentation stating that the property owner of the proposed location for the establishment is fully aware of the property's intended use or a copy of the deed to such property showing ownership vested in the applicant;
K.    A written statement acknowledging that the applicant understands applicable Federal laws, any guidance or directives issued by the U.S. Department of Justice, the laws of the State of Nevada and the laws and regulations of the City applicable thereto concerning the operation of a marijuana establishment. The written statement shall also acknowledge that any violation of any laws or regulations of the State of Nevada or of the City, or any activity in violation of any guidance or directives issued by the U.S. Department of Justice, in such place of business, or in connection therewith, or the commencement of any legal proceeding relating to such marijuana establishment by Federal authorities, may render the permit and such license subject to immediate suspension or revocation.
L.    A written statement to the City that the applicant receiving such a license shall execute, and shall have each of its owners, officers, board members and directors execute, an indemnification and release agreement with the city on a form approved by the city attorney, holding the City, its employees’, officers and elected officials, harmless, indemnify, and defend the City against all claims and litigation arising from the issuance of a permit and/or license, including any claims and litigation arising from the establishment, operation, or ownership of the marijuana establishment, and that the applicant will provide proof of insurance for the purposes of naming the City of Ely as an additional insured on the policy for the defense of the City of Ely in any such litigation.
M.    An acknowledgement that the applicant is seeking a privilege license, similar to that of a liquor license pursuant to chapter 2 of this title and understands that each person with an ownership interest must be found suitable to hold such license by the City Council prior to the issuance of any license; that the applicant understands and acknowledges that the burden of proving qualifications to receive such a license is at all times on the applicant; that the granting of a marijuana license is at the discretion of the City Council; and that the applicant agrees to abide by the decision.
3-15-8: CITY ADMINISTRATOR REVIEW:
A.    The City Administrator shall complete a preliminary review of all submitted applications for a marijuana establishment license to determine whether the application is complete.  An application shall be deemed complete by the City Administrator only when an application filed contains each of the following:
1.    Each application, narrative, plan, rendering, contract and other documents required in this chapter;
2.    Proof of compliance with all submittal requirements of Nevada Revised Statutes 453D and any other regulation or requirement of the State regulating authority;
3.    Proof the proposed location for the marijuana establishment is consistent with the requirements of title 12 of this Code;
4.    All fees have been paid;
5.    All waivers, acknowledgements, and statements are properly signed and acknowledged by the applicant and every principal and person with an ownership interest; and
6.    Each person with an ownership interest has filed complete applications per this title and each individual has submitted to fingerprinting and photographing per this title.
B.    The City Administrator shall reject and return to the applicant any application that is incomplete or otherwise fails to meet the criteria established in this chapter, Nevada Revised Statutes 453D, or the regulations of the State regulating authority.  Permit application fees are non-refundable, and shall not be refunded in the event of rejection of an application.
C.    The City Administrator shall review all complete marijuana establishment applications that satisfy the applicable criteria, and may refer such applications in part, or in whole, to the White Pine County Sheriff's Office for investigation, review and comment, as the City Administrator deems appropriate.
D.    The City Administrator shall prepare a report on the merits of each completed marijuana establishment application, the potential suitability of any and all principals and the application's compliance with the provisions of this chapter, and the application demonstrates the required financial, technical or educational ability or experience to perform the activity for which approval is sought.  In recommending the granting or denying of such marijuana establishment application, the City Administrator shall give particular consideration to the identity, character, and background of the applicant, capacity, capitalization, past business practices of the applicant, operational plan, organizational structure, environmental sustainability and mitigation plans, interior floor plans of the buildings, odor control systems and suitability of the building for the use proposed, site plan as to parking, traffic movement and aesthetics; impact on the surrounding neighborhood; the type and degree of security personnel and facilities and any other factors that in his or her discretion deems necessary to the safety, peace, order and welfare of the public.
E.    The City Administrator may inspect or cause to be inspected by the appropriate City personnel each proposed location for a marijuana establishment and shall call for prospective awardees to appear in front of the City Council for interview prior to the awarding of the license. Prior to approval of a marijuana establishment license, the City Administrator shall require an inspection by the State of Nevada Fire Marshal and the City building official of the location where marijuana sales or production are to be performed.  Applicants shall pay all inspection fees that may be required in connection therewith.
F.    Following the City Administrator's review, the City Administrator shall forward a report on the merits of each complete application with recommendations to the City Council for consideration and interview.
3-15-9: PLANNING COMMISSION AND CITY COUNCIL ACTION ON APPLICATION:
A.    The Planning Commission will review all special use permit applications and provide an oral recommendation to the City Council on each prospective location.  The City Council will review all applications for marijuana establishment license that have been deemed complete by the City Administrator.  Such review shall occur simultaneously with the review of the recommendation of the Planning Commission on the applicant's special use permit application for the proposed marijuana establishment per title 12, chapter 16 of this Code.
B.    The City Council may approve, deny or take such other action with respect to the City Administrator's and the Planning Commission's recommendations on applications for a marijuana establishment license and special use permits, as it considers appropriate.  The burden of showing the qualifications, acceptability or fitness for such permit and the location is upon the applicant.
C.    The City Council shall deny any permit if the permit will not be in the best interest of the welfare, health, or safety of the City; or if the application or location is determined by the City Council to not be suitable under this chapter or the requirements of title 12 of this Code. In considering whether to approve or deny a marijuana establishment license, the City Council shall consider the identity, character, and background of the applicant, capacity, capitalization, past business practices of the applicant, operational plan, organizational structure, environmental sustainability and mitigation plans, interior floor plans of the buildings, odor control systems and suitability of the building for the use proposed, site plan as to parking, traffic movement and aesthetics; impact on the surrounding neighborhood; the type and degree of security personnel and facilities and any other factors that in his or her discretion deems necessary to the safety, peace, order and welfare of the public.
D.    If the City Council denies a marijuana establishment application, or the State regulating authority fails to rank the application presented within limits of the number of marijuana establishments allowed within the City, as established by State law, the applicant may reapply for a marijuana establishment license no sooner than one year from the date of the application period in which the application was filed.
E.    In conformity with the policy of this chapter, the council may deny an application upon its discretion when:
1.    In the judgment of the council the granting of such license may tend to create or constitute a public nuisance;
2.    By granting a license, a disorderly establishment or place may be maintained;
3.    The granting of such license may seriously and adversely affect the valuation of neighboring, adjoining, and/or contiguous property;
4.    The council, after investigation, is satisfied the applicant is not a fit and proper person to operate the business contemplated by its application;
5.    In the judgment of the council there are ample and sufficient establishments in the license area or place to properly serve such area or place;
6.    Violations of the DOJ enforcement criteria set forth above have occurred; or
7.    Any other good and sufficient reason is presented
3-15-10: MARIJUANA ESTABLISHMENT - LICENSES:
The City shall not issue a license for a marijuana establishment to an applicant unless the applicant has an established place of business in a properly zoned area in accordance with title 12 and has been recommended by the Nevada Department of Taxation as an approved applicant.
B.    License shall expire June 30 each year and a licensee must apply for annual review pursuant to section 3-15-27 of this chapter.
C.    A 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 such policies shall be primary over any other valid and collectible insurance.
D.    Upon approval by the City Council of a marijuana establishment license 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 marijuana establishment.
3-15-11: SECURITY REQUIREMENTS:
Each marijuana establishment must submit, maintain and follow a security plan approved by the White Pine County Sheriff's Office and the City Administrator.  Any proposed modification to an approved security plan must be submitted to the City Administrator for approval.  Any security plan must meet all the criteria established by the State regulating authority and the following minimum requirements:
A.    Each licensed premises must have a security system which monitors all perimeter entry points, windows, and controlled areas.
B.    A twenty four hour surveillance system is required to monitor the interior and exterior of a marijuana establishment, a live feed of which must be accessible to authorized law enforcement at all times, and in real-time.
1.    All recorded images must clearly and accurately display the time and date. Time is to be measured in accordance with U.S. National Institute of Standards and Technology standards.
2.    The surveillance system's data storage device must be secured on-site in a lock box, cabinet, closet, or secured in another manner to protect from employee or third-party tampering or criminal theft.
3.    A sign must be posted in any customer areas that the customer is under video surveillance.
C.    The establishment shall be responsible for ensuring compliance with all local and State regulations regarding the facility and must monitor parking areas and outdoor areas of the licensed premises for loitering, unlawful sale of marijuana by customers, and consumption of marijuana.
D.    Any theft of items containing marijuana or the observance of any unauthorized transactions of marijuana on the licensed premises must be reported to the White Pine County Sheriff's Office and the City Administrator upon learning of the theft or unauthorized transaction verbally and within twenty four (24) hours in writing of the occurrence.
E.    A sign shall be posted at the entrance to the location containing the name and functioning telephone number of a twenty four-hour on-call member engaged in the management of the marijuana establishment who shall receive, log, and respond to complaints and other inquiries.
F.    In addition to complying with all requirements set by the State regulating authority, any licensed cultivation facility shall:
1.    Secure the cultivation facility with full video surveillance capable of clearly identifying any activities occurring within twenty feet (20') of the exterior of the building and any parking, fenced, or loading areas. A motion detection lighting system may be employed to illuminate the gate area in low light conditions.
2.    Must provide on-site security at all times when the facility is not otherwise populated by employees.
G.    In addition to complying with all requirements set by the State regulating authority, any licensed marijuana production facility shall ensure all production, transport, delivery, shipping, labeling and packaging areas have fixed camera coverage capable of identifying activity occurring within a minimum of twenty feet (20').
3-15-12: MARIJUANA ESTABLISHMENTS:
Pursuant to its general regulatory authority to regulate the sale, cultivation, infusion or testing of marijuana, the council declares that the health, safety, morals and welfare of the inhabitants of the city are best promoted and protected by requiring a separation between certain marijuana uses.  The council retains all discretion to approve or disapprove marijuana establishment license applications.
Cultivation facility must meet all requirements established in City Code 3-14-13 when making application for licensing.
 
Independent testing laboratories must meet all requirements established in City Code 3-14-14 when making application for licensing.
 
Marijuana production facility must meet all requirements established in City Code 3-14-15 when making application for licensing.
 
3-15-13: Change of location—Restrictions—Marijuana establishment origination fee:
No marijuana establishment license is transferable to a new location unless such proposed change of location complies with and meets all requirements of this title and title 12.  The council may authorize such change of location, which authorization may be withheld for any reason deemed sufficient by the council.  Location changes are subject to relicensing fees as set forth in chapter 3-1.  There shall be no marijuana establishment origination fee required for a change of location. A change of location must also be approved by the Nevada Department of Taxation pursuant to the regulations adopted by the Department of Taxation.
3-15-14:   License—Permit—Transfer of ownership and changes in business structure—Council approval required:
 
A.    No marijuana establishment license issued or renewed under this chapter can be transferred except with the prior approval of the Council and must follow all Department of Taxation policies and procedures for transferring of ownership.  Further, all changes in business structure, including any new officers or board members or directors, also require prior approval by the council.
B.    Any proposed transfer of ownership or changes in business structure must be reported to the City Administrator at least sixty (60) calendar days prior to the effective date of the proposed transfer or change.
C.    Any new owner, officer, or board member or director must comply with the requirements of 3-15-7 and shall be required to undergo the same background investigation and finding of suitability pursuant to 3-15-5.
 
3-15-15:   Closure or non-operational status—Responsibility to maintain use:
A.    In the event a marijuana establishment licensee desires to close or discontinue its business operations for any period of time in excess of three months, it must submit a written notification to the City Administrator within 30 calendar days of the closure or discontinuance requesting approval for non-operational status beyond the initial three-month period.  The notification must include a closure plan detailing the length of closure or period of non-operational status and the licensee's plans for reopening, relocating, selling, or otherwise divesting itself of the business.  The licensee may not discontinue operation of the business for more than a three-month period and maintain a valid marijuana establishment license without council approval.  The council may approve non-operational status of the business beyond the initial three-month period in time increments not to exceed one year.
B.   A marijuana establishment license shall be automatically revoked at the expiration of the time periods provided by this section unless council approval has been granted pursuant to this section.  All annual license fees must be paid notwithstanding the licensee's non-operational status. Failure to maintain the fees will result in automatic revocation of the marijuana establishment license and termination of the special use permit.
C.    It shall be the responsibility of the licensee to maintain, extend, or renew any necessary land use approvals under title 12.
3-15-16:   Issuance of moratorium:
 
The council may declare a moratorium by resolution on any or all marijuana establishment applications or licenses if, in its discretion, it is found to be in the best interests of the city.
3-15-17:   Land use and location requirements—Compliance with title 12.
 
A.    Locations for certain marijuana establishments are subject to distance restrictions as set forth in NRS 453D.
B.    A marijuana establishment license will not be issued unless the location is zoned commercial or manufacturing under title 12.
C.    Approval of a location or of a use permit pursuant to title 12 does not guarantee or constitute approval of any marijuana establishment license.
D.    Establishments shall be operated in compliance with the requirements set forth in this title.
3-15-18:   Marijuana establishments—Interconnectivity allowed:
 
Marijuana establishments may be interconnected in the interior subject to the following:
A.    Interconnectivity is limited to dispensary, cultivation and infusion facilities only;
B.    The cultivation and infusion facilities shall not be open or available for public ingress or egress except in an emergency;
C.    The interconnected establishments shall comply with all applicable regulations of the Nevada Department of Taxation; and
D.    Operations of interconnected establishments may be impacted due to enforcement actions related to any of the interconnected facilities.
3-15-19:   Delivering off premises:
Delivery off premises of marijuana for recreational use is prohibited.
3-15-20:   Intoxication on premises:
It is unlawful for any person, while engaged in the performance of his or her duties, to be under the influence of alcohol, marijuana, or any other controlled substance that is prohibited pursuant to state or federal law, or an illegally obtained or ingested controlled substance that is available by prescription, in or about the premises where the business of selling marijuana products is being conducted and while such person is engaged in the performance of his or her duties.
3-15-21:   Distributing to minors—Establishment of policy—Copy on premises—Requirement to show:
A.    The owners and managers of every marijuana establishment that sells, gives, or otherwise furnishes marijuana, edible marijuana products, or marijuana-infused products shall adopt a policy to prevent any person under 21 years of age from obtaining marijuana, edible marijuana products, or marijuana-infused products from that establishment.
B.    The policy shall be in accordance with all provisions of the City of Ely Municipal Code and state law.
C.    A copy of the policy shall be kept on the premises at all times and shall be made known to and available to all employees.
D.    The policy shall be available upon request by the City, the White Pine County Sheriff’s Office, or the Department of Taxation.
3-15-22:   Minor—Employment:
 
Except as otherwise provided by state law, it is unlawful for any marijuana establishment to employ a person under the age of 21 years, or to permit a person under the age of 21 years to sell marijuana, edible marijuana products, or marijuana-infused products.
3-15-23:   Suspension—Revocation—Limitation—Penalty:
 
Any activity which is contrary to the purpose and intent of this chapter, or which violates any ordinance, regulation, or statute of the city or the state, is a violation of this chapter and is grounds for disciplinary action which may result in a revocation, suspension, or limitation of a marijuana establishment license and any and all other licenses held within the city and may be considered a misdemeanor pursuant to City Code 1-4-1.  Without limiting the generality of the foregoing, each of the following is declared to be subject to disciplinary action, including but not limited to:
A.    Any person who violates any provision of title 3;
B.    Any person who knowingly does any act to sell, lease or purchase a marijuana establishment business operation or any portion thereof without taking immediate and affirmative steps to obtain approval;
C.    Failure to report the names of all persons having an interest in the ownership of or having an equitable or beneficial right to the profits of a marijuana establishment, including failure to report any change in ownership as required by this chapter;
D.    Failure to report the officers, board members or directors of the applicant or marijuana establishment license holder, including failure to report any change to the officers, board members or directors as required by this chapter;
E.    Failure to report any lease, operating or management agreement, amendment to management agreement, or any other agreement, irrespective of form affecting the ownership, control, or operation of the marijuana establishment;
F.    Failure of any person to report any information which is its duty to supply under any statute, ordinance, and/or regulation of the state or city;
G.    Allowing any person that becomes ineligible to hold a marijuana establishment license based on conduct subsequent to the issuance of a license, as set out in the statues, ordinances, and/or regulations of the state or city to continue involvement with the establishment;
H.    Making any misrepresentation of any material fact;
Allowing any person whose marijuana establishment license in any other jurisdiction has been revoked for cause to continue involvement with the establishment;
J.    Failure to comply in any way with the following factors established by the United States Department of Justice in its memorandum titled "Guidance Regarding Marijuana Enforcement" dated August 29, 2013:
1.    Preventing the distribution of marijuana to minors;
2.    Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels;
3.    Preventing revenue from the sale of marijuana from states where it is legal under state law in some form to other states;
4.    Preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;
5.    Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
6.    Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use;
7.    Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and
8.    Preventing marijuana possession or use on federal property.
3-15-24:   Marijuana establishment responsible for the acts of employees:
Every licensee shall be responsible for the acts of its employees committed while on the licensed premises and during the course and scope of employment. Every licensee shall accordingly use adequate care in the selection of its employees. In any license suspension, limitation or revocation proceedings, the fact that the licensee did not have actual knowledge of the events complained of shall be no defense and every licensee accepts its license subject to said condition.
3-15-25:   Marijuana establishments subject to local government audit:
All marijuana establishments shall maintain records at the location accurately and truthfully documenting:
A.    All records and receipts of the establishment, including, but not limited to, all contributions, reimbursements, and reasonable compensation, whether in cash or in kind, and all expenditures incurred by the business for the cultivation, production, sale or dispensing of marijuana or marijuana products;
B.    All records and receipts for the retail sale, transfer or wholesale sale of any marijuana or marijuana product and the corresponding electronic tracking inventory reference as may be required by state law concerning the seed to sale tracking of the marijuana establishment's marijuana inventory;
C.    An inventory record documenting the dates, amounts, and content testing results of all marijuana cultivated by business, including the amounts of marijuana stored at the location at any given time;
D.    A log documenting each transfer of marijuana reflecting the amount transferred, the date transferred, and the full name of the member to whom it was transferred;
E.    A log documenting each transfer of marijuana in any form reflecting the amount transferred, the date delivered, and the full name of the employee whom transferred it to another marijuana establishment;
F.    Any loss, damage or destruction of the records shall be reported to the city within 24 hours of the loss, destruction or damage; and
G.    Surveillance cameras must be directly positioned over the cash register in order to provide clear view over the:
1.    Area where the tender type (cash, credit card or checks) is exchanged between the buyer and seller; and
2.    Register or computer keys utilized to enter the sales information.
3-15-26:   Public consumption of marijuana—Prohibition:
The consumption of marijuana shall be prohibited in any public place including, but not limited to any business licensed by Title 3.
3-15-27:    ANNUAL REVIEW OF LICENSE:
A.    Every year on or before June 30, the licensee must submit to a review of the issued license.
B.    Documentation required for the annual review must be submitted at least thirty (30) calendar days prior to the expiration of the license.
C.    Documentation for the annual review must be provided on a form approved by the City Administrator and accompanied by:
1.    A license renewal application;
2.    A nonrefundable application renewal fee of one thousand dollars ($1,000.00);
3.    Current list of all ownership or affidavit testifying that no changes have occurred;
4.    Signed affidavits from each principal attesting to the fact that there have not been any arrests or convictions of a crime in any jurisdiction and they have not had disciplinary action taken against them or an associated business where a business license is held;
5.    If changes are requested, a detailed proposal for changes to any of the plans or documents approved with the initial license or previous renewal, including the sign plan, security plan, environmental plan, operational plan, or building plans;
6.    A copy of all current and proposed contracts for consulting, management, renting or leasing;
7.    A copy of all contracts with any other marijuana establishments; and
8.    A statement certifying and attesting that no changes have occurred in the ownership, operations or original application with the exception of those specifically noted in the renewal application.
D.    The City Administrator may approve the review and approve a renewal of the license based on a determination that no material changes have been made to the original application or refer the review with noted requested changes to the Council for consideration.  The City Council may approve, approve with conditions, deny or take such other action as it deems appropriate. 
E.    The City Administrator may deny renewal of a license based on the failure or refusal of a licensee to carry out the policies and procedures or comply with the plans and statements provided to the City with the application for the license.
F.    The City Administrator may deny renewal of a license if the establishment is not in compliance with this chapter or has any unpaid fees.
3-15-28: WORK CARD AND AGENT REGISTRATION CARD REQUIREMENTS:
A.    Policy: It is hereby declared to be the policy of the City as expressed by the City Council in this section, that the safety, morals, good order and general welfare of the inhabitants of the City will be better protected and served by requiring the registration with the City through its designees at City Hall and the thumbprinting/fingerprinting of all employees, of marijuana establishment as defined in this chapter.
1.    Each employee, whether a full-time or part-time employee, independent contractor, or volunteer who works in a marijuana establishment business or facility shall obtain, prior to the commencement of work and keep in force during the term of employment, a work card issued pursuant to this section.  A complete and accurate list of all employees and volunteers, each of whom must have a valid marijuana establishment agent registration card and work card issued pursuant to this section, must be kept onsite and available for inspection at all times.  The list must contain the current employment status, position and title of each employee and volunteer, and work shift.
2.    It shall be a condition of the license to inform the City of any change in the employment status of a registered employee or volunteer or who serves in a management position or as a key employee within ten (10) calendar days of the effective date of the change in employment status.  A change of employment status includes termination, leave of absence, and promotion to a management position or key employee.
Definitions: As used in this section, the following words and terms shall have the meanings ascribed to them in this section:
EMPLOYEES: Employees of marijuana establishments means any person working (including principals) whether classified by the owner as an independent contractor, full time, part-time, or volunteer in any capacity, including on-site security, contracted employee for services including, but not limited to accounting services, security services, cleaning services or any other manner of contracted work.
3-15-29: EMPLOYMENT UNLAWFUL:
A.    Employee: It is unlawful for any person to accept employment in any marijuana establishment or facility unless such person has first registered his/her name and address with City Hall and had his/her thumbprints and fingerprints taken and filed with City Hall and has been issued a marijuana establishment work card.  By registering with City Hall and having his/her thumbprints and fingerprints taken and filed, the person herewith authorizes the City to submit said thumbprints and fingerprints to the Federal Bureau of Investigation, pursuant to Nevada Revised Statutes 239B.010 for the purpose of conducting a national background check of the person.
B.    Employer: It is unlawful for any person operating a marijuana establishment or facility to employ any person required to register with City Hall by the terms of this section unless such person has first obtained a marijuana establishment work card.
C.    Marijuana Establishment Work Card:  Marijuana establishment work card shall not be issued to those persons listed below:
1.    Persons convicted of any crime equivalent to a Nevada category A felony regardless of jurisdiction in which conviction occurred;
2.    Persons convicted of any felony involving the use of violence against another person;
3.    Persons being supervised by the Department of Parole and Probation, or its equivalent entity from another state, who lack written approval to work in a licensed establishment from the supervising agency;
4.    Persons who have been convicted of any felony where firearms were used in the commission of a crime;
5.    Persons who have been convicted of any felony or gross misdemeanor where the predicate crime was theft, false pretenses, unlawful use of a credit card, or identity theft.
6.    A person who has successfully completed felony or gross misdemeanor probation or parole and whose civil rights have not been restored or who has not received a pardon may be entitled to a work card at the sole discretion of the City Council.
7.    Except for those persons falling under subsection C1 of this section, any other person who would otherwise be ineligible for a work card due to conviction, who can establish the satisfactory completion of probation or parole and who has had no negative law enforcement contact for five (5) or more consecutive years following completion of probation or parole may apply to the City Council for a worker card under this section. The City Council retains the sole right to authorize the issuance of a medical marijuana establishment work card.
D.    Full Disclosure: Failure to fully disclose a felony or gross misdemeanor criminal conviction will be sufficient grounds for denial or immediate revocation of a work card.
E.    Denial or Revocation: Any person aggrieved by the denial or revocation of a work card pursuant to this section may seek a review hearing before the City Council by filing a request for review with the City Administrator or designee within thirty (30) calendar days of the announcement of the denial or revocation of the work card.
1.    Failure to appear before the City Council and/or to provide clear and convincing evidence demonstrating an error was made in the denial determination or failure to provide clear and convincing evidence meeting the requirements of subsection C6 or C7 of this section will result in an affirmance of the denial.
2.    A majority vote of the City Council is required to overturn a denial or revocation subject to the Mayor's right to veto.
3-15-30: INVESTIGATION FEE:
A.    Fee: Upon an employee complying with the provisions of subsection 3-15-28 of this chapter, City staff shall collect an investigation fee of one hundred twenty five dollars ($125.00) to reimburse the City for the costs of processing the application and issuing a work card to such employee.  Any information received from the background check shall be confidential and made accessible only to the Mayor, the City Council, the City Attorney, the employer of such person and law enforcement officers.  A work card issued pursuant to section 3-15-28 of this chapter shall be valid for one year and must be renewed annually.
B.    Employer's Responsibility: It shall be the responsibility of the employer to provide the City of Ely with a letter, on their letterhead, indicating the employer's intent to hire the employee and authorize the issuance of a work card.  An employer shall be fined one thousand dollars ($1,000.00) per incident where an employee works without the required marijuana establishment work card.
C.    Transferable: A marijuana establishment work card issued pursuant to this section shall not be transferable.
D.    Proof: Each card holder is required to provide to any person, including but not limited to law enforcement, proof that they have a validly issued marijuana establishment work card at any time they are working in a marijuana establishment or facility.  Failure to produce the card upon demand, or working without the required card could result in the worker being charged under section 1-4-1 of this Code for a misdemeanor violation of this section.
3-15-31: CONFIDENTIAL INFORMATION:
The confidentiality of records regarding marijuana establishments shall be in accordance with Federal and State law.  The duty to disclose any particular record as a public record shall be in accordance with State law.
3-15-32: FEES:
A.    Annual License Fee: Annual licensing fees shall be set and amended from time to time by the City Council by written resolution.
1.    Each annual fee is due in advance on the first day of July each year.  License fees paid pursuant to this chapter are not refundable.
2.    Any annual fee which is not received by the City on or before the due date shall be assessed a late-payment penalty amount equal to ten percent (10%) of the amount of such annual fee, not subject to any limitation by the state of Nevada.
3.    If the annual fee and penalty is not received by the City within fifteen (15) calendar days after the due date, an additional penalty in an amount equal to twenty five percent (25%) of such annual fee shall be assessed, not subject to any limitation by the state of Nevada.
4.    If the annual fee and all penalties are not received by the City within thirty (30) calendar days after the due date, the license shall be automatically suspended and if the annual fee and all penalties are not received by the City within sixty (60) calendar days after the due date, the license shall be automatically revoked.
Amount: The City Council reserves unto itself the right to set the amount of fees it can charge for the sale of marijuana based upon gross sales not to exceed three percent (3%) of gross sales, including the costs of the annual business license fee.
Effective Date.   This ordinance shall become effective twenty (20) days after its passage, approval and publication according to law.
Proposing Parties.   The foregoing ordinance was proposed by Mayor Van Camp, at the regularly scheduled meeting of the Ely City Council on ________________, read by title and referred to the City Council of the City of Ely, as a committee of the whole.
Notice.      Notice of filing of such ordinance was duly given by publication as required by law.
Reading.   It was read in full at the regular meeting on ______________, and adopted by the following vote:
VOTE:         AYES:      ________________
            NAYES:      ________________
            ABSENT:      ________________
Approved this _22nd__ day of __November__, 2018
               ___________________________________
               MELODY VAN CAMP, MAYOR
ATTEST:
__________________________________
ROBERT SWITZER, CITY ADMINISTRATOR