A. Findings: The Wells City Council finds:
1. The Constitution of the -State of Nevada Article 4, Section 38 directs the Nevada Legislature to provide for, among other things, the authorization of appropriate methods of supply of marijuana to patients authorized to use it for medical purposes, and the 2013 Nevada Legislature enacted Senate Bill 374 (Chapter 457, Statutes of Nevada 2013) significantly amending NRS Chapters 372A (Tax on Controlled Substances) and Chapter 453A (Medical Use of marijuana) to provide for exemption from criminal prosecution and the certification, taxation and regulation of medical establishments (including dispensaries, cultivation facilities, testing laboratories, and production facilities of edible products) by the Division of Public and Behavioral Health State Department of Health and Human Services (the "Division").
2. In 2017, the people of the State of Nevada approved Ballot Question #2, legalizing the use of marijuana for persons twenty-one (21) years of age or older, now codified in Nevada Revised Statutes 453D, which allows for recreational marijuana establishments and sales within the State of Nevada and requires such establishments to comply with all local business licensing requirements, local land use and Code requirements.
3. The existing law requires the Department of Taxation to adopt all regulations necessary or convenient to cany out provisions of NRS 453D, which exempts a person who is twenty-one (21) years of age or older from state or local prosecution for possession, use, consumption, purchase, transportation or cultivation or certain amounts of marijuana and requires the Department of Taxation to begin receiving applications for the licensing of marijuana establishments on or before January 1, 2018. Approved Regulation of the Department of Taxation, LCB File No. R092-17, became effective February 27, 2018. NRS 453A and 453D were effective until June 30, 2020, and 678A through 678D, inclusive, took effect July 1, 2020.
4. NRS 453A.326, prior to June 30, 2020, and NRS 678B.320 currently provides that if a local jurisdiction issues business licenses, the registration certificates issued by the Division are deemed to be provisional until a business license is issued and the certificated establishment complies with rules and ordinances of the local jurisdiction; and
5. Nevada law allows for the City to enact regulations to protect and promote the public health, safety, and welfare of the citizens of the City;
6. NRS 453A.326 and 453D.120, prior to June 30, 2020, and NRS 678C.200, 678C.210, and 678D.400 provide that in connection with activities by certified establishments, certain acts are exempt from criminal prosecution by the State of Nevada and its political subdivisions.
7. Since the use, cultivation, distribution, production, possession and transportation of marijuana/cannabis remains illegal under Federal law, and remains classified as a “controlled substance” by federal law, this council does not have the authority to (and nothing in this chapter is intended to) authorize, promote, condone or aid production, distribution or possession of marijuana/cannabis in violation of any applicable law;
8. This Chapter is intended to implement NRS 453A and/or NRS 4531), prior to June 30, 2020, and 678A through 678D, inclusive, after July 1, 2020, and to establish criteria for the issuance of licenses that are a prerequisite for the exemption from the State prosecution provided for therein. To the extent that medical cannabis and adult-use cannabis establishments are registered and authorized by the State, the purpose of this chapter is to license and regulate them within the corporate limits of the City to protect the public interest over cannabis business interests.
9. As the operation of a medical cannabis and/or adult-use cannabis establishment is a revocable privilege and there is no property right for an individual or business to operate a medical cannabis establishment in the City. Nothing in this chapter shall be construed to confer any legitimate claim of entitlement to any benefit which might otherwise devolve upon licensee or any person approved for suitability or any third party; and
10. By voluntarily applying for and accepting a business license issued in accordance with this section to operate a medical cannabis establishment or adult-use cannabis establishment, the holder of the business license and any other owners, managers, agents, employees, affiliates, heirs and assigns of the medical cannabis establishment or cannabis establishment for which the license is issued:
a. Waive and release the City, its officers, elected officials, employees, attorneys and agents from any liability from injuries, damages or any other liability of any kind that results from any arrest, prosecution or regulations.
b. Jointly and severally agree to indemnify, defend and hold harmless the City and any of its elected or appointed officers, agents, employees or attorneys from any and all claims, demands, actions, damages, decrees, judgments, attorney fees, costs and expenses which may be asserted against the City, or such elected or appointed officers, agents, employees or attorneys arising out of or in any manner connected with the medical cannabis establishment or cannabis establishment that is the subject of a license issued under this title, including, without limitation, any injury, loss or damage, including claims arising from bodily injury, personal injury, sickness, disease, death, property loss or any other loss of any kind whatsoever arising therefrom. This duty to defend and indemnify the City hereunder shall apply regardless of any fault of the City in the issuance of a license. The duty to defend the City is absolute and shall arise as soon as any demand or claim is asserted against the City and is not conditioned upon a finding of any fault of the holder of the license. The City is entitled to select the attorney to defend against the claims and the holder of the license shall immediately pay all fees and costs charged by the attorney selected by the City.
B. Intent: The intent of this chapter is to establish the licensing, zoning, land use and development requirements applicable to medical cannabis and adult adult-use cannabis uses, as authorized under chapter prior to June 30, 2020, and 678A through 678D, inclusive, after July 1, 2020, of Nevada Revised Statutes, respectively.
C. Purpose: Pursuant to its general authority to regulate the cultivation, production, dispensing and sale of cannabis, the city council declares that the public health, safety and general welfare of the city are best promoted and protected by requiring the licensing and zoning regulations and standards set forth in this chapter. (Ord. 230, - -2018; amd. Ord. 234, 8-25-2020)