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A. No person shall operate a cannabis distribution business without a valid cannabis distribution permit issued pursuant to this chapter, or inconsistently with the type of permit issued.
B. Types of cannabis distribution business permits issued pursuant to this chapter include the following:
1. Type D (distribution), for a business involving all aspects of a cannabis distribution business. A type-D permittee may store cannabis and cannabis products on the distribution site, and transport cannabis and cannabis products between any cannabis business permittee, including storefront and delivery-only cannabis dispensaries.
2. Type S (self-distribution), for a business that also holds a valid permit for a cannabis manufacturing business and is operating within the limitations of the cannabis manufacturing use described in section 17.228.900.C. A type-S permittee may store only cannabis and cannabis products that have been manufactured by the permittee on the distribution site; and transport only cannabis and cannabis products that have been manufactured by the permittee, between any cannabis business permittee, including storefront and delivery-only cannabis dispensaries.
3. Type T (transportation only), for a business involving only the transportation of cannabis and cannabis products between cannabis businesses. A type-T permittee may not store cannabis and cannabis products on the distribution site; and may not transport cannabis and cannabis products to a storefront cannabis dispensary or a delivery-only cannabis dispensary, unless the type-T permittee is transporting only immature cannabis plants or cannabis seeds from a nursery. (Ord. 2020-0012 § 2; Ord. 2018-0037 § 1; Ord. 2017-0060 § 5)
The cannabis distribution permit program fee is established and imposed. The city council shall establish by resolution the amount of the cannabis distribution permit program fee, and any related penalties. The fee and penalties may be established at various amounts based on the type of permit. The fee and penalties for a type-D permit may also be established at various amounts based on the size of the business or its gross receipts. (Ord. 2018-0037 § 2; Ord. 2017-0060 § 5)
The buildings on the sites of a type-D or type-S cannabis distribution permittee must comply with the following requirements:
A. Entrances. All entrances into the buildings on the distribution site must be locked at all times with entry controlled by the cannabis distribution permittee's managers and staff.
B. Main entrance and lobby. The distribution site must have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance must be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there must be a lobby that must be used only to receive persons into the site and to verify whether they are allowed in the areas where cannabis or cannabis products are stored. The lobby must be secure and restrict access to any other area of the facility.
C. Storage area. The distribution site must have adequate storage space for all cannabis and all cannabis products being distributed. All storage areas in any building on the distribution site must be separated from the main entrance and lobby and must be secured by a lock accessible only to managers and staff of the cannabis distribution permittee.
D. Transport area. Each building with a storage area must have an area designed for the secure transfer of cannabis between a vehicle and the distribution site. (Ord. 2022-0006 § 30; Ord. 2018-0037 § 3; Ord. 2017-0060 § 5)
Type-D or type-S cannabis distribution permittee must comply with the following security provisions at all times:
A. Security surveillance cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the distribution site, the parking lot, storage and loading areas, areas not clearly visible from the public streets, and all exterior sides of the property adjacent to the public rights of way to discourage nuisance or illegal activities. The system must also be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the distribution site. The system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.
B. Security video recording and retention. Video from the security surveillance cameras must be recording at all times (24 hours a day, seven days a week) and the recording must be maintained for at least 90 days. The video recordings shall be made available to the city upon request.
C. Alarm system. Professionally and centrally-monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must be certified and monitored by a properly licensed private security company that is required to respond to every alarm within 20 minutes. The system must also include a hold-up alarm that is accessible near the transport area, manager's office, lobby, and storage areas.
D. Back-up Security System. The security system must be equipped with at least 24 hours of continued operation in case of power failure and equipped with a cellular back-up in case of phone disruption. (Ord. 2022-0006 § 31; Ord. 2018-0037 § 4; Ord. 2017-0060 § 5)
The cannabis distribution permittee shall display its current valid cannabis distribution permit issued in accordance with this chapter inside the lobby or waiting area of the main entrance to the distribution site. The permit must be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the distribution site. (Ord. 2017-0060 § 5)
A. A cannabis distribution permittee shall post in the lobby of the distribution site signs that state the following:
1. "This site is not open to the public."
2. "Retail sales of any goods and services is prohibited."
3. "Persons under 21 years of age are prohibited from entering this site."
4. "Smoking, ingesting, or consuming cannabis or cannabis products on this site or in a public place is prohibited."
B. Each sign described in subsection A must be at least 8 inches by 10 inches in size and must be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the distribution site. (Ord. 2017-0060 § 5)
A. No cannabis distribution permittee shall open their distribution site to the public.
B. No cannabis distribution permittee shall allow anyone on the distribution site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and distribution drivers.
C. A manager must be on the distribution site at all times that any other person, except for security guards, is on the site.
D. Any person other than managers or staff who are on the distribution site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. (Ord. 2020-0004 § 32; Ord. 2017-0060 § 5)
A. No person under 21 years of age shall be on the distribution site or operate a cannabis distribution business in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer.
B. No cannabis distribution permittee shall allow any violation of subsection A. (Ord. 2017-0060 § 5)
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