5.61.080 - Initial commercial cannabis permit application procedure.
Part of the Code of Ordinances of Commerce, CA.
The text
(a)
This section shall establish the initial application procedure, requiring applicants to meet and comply with minimum application requirements.
(b)
Notwithstanding the subsection hereinabove, the city administrator shall have the authority to adopt any procedure(s) to supplement the initial application process as set forth herein. Pursuant to this section, the city administrator, or his or her designee, will have the authority to adopt any procedures to govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any commercial cannabis permit(s), including establishing objective review criteria ("review criteria"), if necessary in order to supplement any provision established herein. The city administrator, or his or her designee, is authorized to prepare the necessary applications, forms, adopt any necessary rules to the application, regulations and processes, solicit applications, and conduct initial evaluations of the applicants.
(c)
Notwithstanding the sections hereinabove, the following minimum, and complete information shall be included in each and every application for a City of Commerce commercial cannabis permit:
(1)
Name of Applicant. For applicants who are individuals, the applicant's full legal name (first, middle, last). For applicants that are business entities, the applicant's legal business name.
(2)
Business Trade Name (If Applicable). The business trade name ("DBA") of the applicant.
(3)
Identification of Primary Owner. The full name (first, middle, last), primary phone number, Social Security number or individual taxpayer identification number, date and place of birth, email address, and mailing address for the primary owner submitting the application.
(4)
For each person that is an "owner" of the applicant, as defined in this chapter, including the "primary owner" referenced above, the following information:
(A)
Owner's full legal name;
(B)
Owner's title within the applicant entity;
(C)
Owner's date and place of birth;
(D)
Owner's Social Security number or individual taxpayer identification number;
(E)
Owner's mailing address;
(F)
Owner's telephone number;
(G)
Owner's email address;
(H)
Owner's current employer;
(I)
Percentage of interest held in the applicant entity by the owner;
(J)
Whether the owner has an ownership or financial interest, as defined in Section 5003 of the regulations, in any other commercial cannabis business licensed under the AUMA or MAUCRSA;
(K)
A copy of the owner's government-issued identification, acceptable forms are a document issued by a federal, state, county, or municipal government that includes the name, date of birth, physical description, and picture of the owner, such as a driver's license;
(L)
A detailed description of the owner's criminal convictions, if applicable. A conviction for this purpose means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Convictions dismissed under Penal Code Section 1203.4 or equivalent non-California law must be disclosed. Convictions dismissed under Health and Safety Code Section 11361.8 or equivalent non-California law must be disclosed. Juvenile adjudications and traffic infractions under three hundred dollars that did not involve alcohol, dangerous drugs, or controlled substances do not need to be included. For each conviction, provide: (a) the date of conviction; (b) dates of incarceration, if applicable; (c) dates of probation, if applicable; (d) dates of parole, if applicable; (e) a detailed description of the offense for which the owner was convicted; and (f) a statement of rehabilitation for each conviction written by the owner that demonstrates the owner's fitness for consideration;
(M)
If applicable, a detailed description of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a licensing authority or local agency against the applicant or a business entity in which the applicant was an owner or officer within the three years immediately preceding the date of the application;
(N)
If applicable, a detailed description if the city issued the applicant a notice or citation for unlicensed commercial cannabis activity, or if the applicant was a defendant in a civil or criminal proceeding filed by the city or the people of the State of California, for allowing, causing, or permitting unlicensed commercial cannabis activities within the city's jurisdiction;
(O)
An attestation of each owner as follows: "Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact or omission may be cause for rejection or denial of this application, or revocation of any commercial cannabis permit, or non-approval of a development agreement, or any permit, license or approval issued in reliance thereon."
(5)
Primary Contact. The contact information for the applicant's designated primary contact person, including the name, title, phone number, and email address of said individual.
(6)
Nature of Operations. Identification of whether the applicant seeks to operate a cannabis cultivation site, manufacturing site, testing laboratory, distribution site, microbusiness facility, or non-storefront retail-delivery only site; the specific state license category under which the applicant will seek to operate; and the number of employees anticipated.
(7)
Qualifications and Experience of Applicants and Owners. The application shall include information concerning any special business or professional qualifications or licenses of the applicants and owners, and the years of relevant and related experience, that would add to the number or quality of services that facility would provide, or otherwise demonstrates the applicants' and owners' capacity to operate a successful commercial cannabis facility in compliance with applicable laws and regulations.
(8)
If Premises Known. If the premises where applicant seeks to conduct a commercial cannabis business is known at the time the application is submitted, the following information shall be provided:
(A)
The physical address of the proposed location, as well as the Los Angeles County Assessor Parcel Number.
(B)
Evidence of the applicant's right to use and occupy the property. If owned by applicant, a grant deed or a copy of title for the property. If not owned by applicant, a document from the landowner or the landowner's agent stating the applicant has the right to occupy the property and acknowledges that the applicant may use the property to potentially conduct a commercial cannabis business for which the applicant is applying, plus any lease agreement.
(C)
A complete and detailed diagram, such as a site plan, of the premises, as well as a map showing the premises' location within the city, which comply with the following:
(i)
Shows the boundaries of the property and the proposed premises to be utilized, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, bathrooms, windows, doorways, and common or common shared entryways, and a brief statement of the principal activity to be conducted therein;
(ii)
Map identifying any schools (K-12), day cares, or youth center facilities (i.e., "sensitive sites") located within six hundred feet of the proposed location. If the proposed location is not within six hundred feet of any sensitive site, identify on the map the closest sensitive site, and the distance in feet between said sensitive site(s) and the proposed location;
(iii)
Identifies all commercial cannabis activities that will take place in each area of the premises, and identification of limited access areas;
(iv)
The location of all proposed cameras with a number assigned to each for identification purposes;
(v)
The diagram shall be clear, legible, and to scale, and shall not include any highlighting, and the markings on the diagram shall be in blue-and-white print; and
(vi)
If the proposed premises include only a portion of a property, the diagram must be labeled indicating which part of the property is the proposed premises and what the remainder will be used for.
(9)
If Premises Unknown. Applicants that have not secured a location or property at the time of application submittal shall provide the following information:
(A)
A description of the efforts made to-date to secure a premises;
(B)
A description of the mechanisms the applicant intends to pursue to identify and secure an acceptable location;
(C)
A detailed description of the size, improvements, buildings, structures, features, qualities, characteristics, and/or amenities of real property which applicant reasonably anticipates will be needed to house the proposed scope of commercial cannabis activities covered in the application;
(D)
Identification of properties located in the city that satisfy applicant's criteria identified in subdivision (3) hereinabove;
(E)
A description of the feasibility of the applicant securing such a property as described in subdivision (3) hereinabove within the next calendar year; and
(F)
A description of the financing and financing resources available to applicant to secure a property within the next calendar year.
(10)
Description of Operating Procedures. Applications shall include a detailed description of the applicant's proposed operating procedures for each of the following areas, as applicable, as well as copies of any applicable policies or manuals of the applicant. If the applicant believes an area of the application is not applicable, besides identifying same in the application, the applicant may provide a brief explanation as to why the area is not applicable to the applicant's proposed operations. Applicants that have not secured a specific operating location shall respond to each area, though responses need not be "site specific" where appropriate:
(A)
Transportation Procedures. A description of the procedure for transporting cannabis and cannabis products, including whether or not the applicant will be transporting cannabis or cannabis products or contracting for transportation services.
(B)
Inventory Procedures.
(i)
A description of the applicant's procedure for receiving shipments of inventory;
(ii)
Where the applicant's inventory will be stored on the premises and how records of the inventory will be maintained; and
(iii)
Procedure for performing inventory reconciliation and for ensuring that inventory records are accurate.
(C)
Non-Laboratory Quality Control Procedures.
(i)
Procedures for preventing the deterioration of cannabis or cannabis products held by the applicant;
(ii)
Procedures for ensuring that cannabis and cannabis products are properly packaged and labeled; and
(iii)
Procedure for ensuring that an independent licensed testing laboratory samples and analyzes cannabis and cannabis products held by the applicant.
(D)
Security Procedures. All applicants shall propose sufficient security measures to deter and prevent the unauthorized access or entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Proposed security procedures shall include, but shall not be limited to, all of the following:
(i)
Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business.
(ii)
Establishing limited access areas accessible only to authorized commercial cannabis business personnel.
(iii)
How and where all cannabis and cannabis products will be stored in a secured and locked room, safe, or vault. How all cannabis and cannabis products, including live plants that will be cultivated, will be kept in a manner as to prevent diversion, theft, and loss.
(iv)
Procedures for installing 24-hour security surveillance cameras (CCTV) of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. Procedures for how the applicant will ensure that the security surveillance camera's footage is remotely accessible to law enforcement, and that it is compatible with the city's software and hardware. In addition, procedures on how remote and real-time, live access to the video footage from the cameras will be provided to law enforcement. Procedures for ensuring video recordings are maintained for a minimum of sixty calendar days, and procedures to make them available to law enforcement upon request. Procedures to ensure video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business.
(v)
A description of where sensors will be installed to detect entry and exit from all secure areas.
(vi)
A description of procedures of installing panic buttons in the premises.
(vii)
Description of having a professionally installed, maintained, and monitored alarm system, with the required City of Commerce alarm permit as required by this code.
(viii)
If wrought-iron bars are proposed to be installed on the windows or the doors of the commercial cannabis business, measures showing that said improvements will be installed only on the interior of the building, and in full compliance with all applicable Building and Safety and Fire Code requirements.
(ix)
Procedures on establishing a plan to have security personnel on-site twenty-four hours a day, or alternative security as authorized by the law enforcement agency. Description or documentation showing that the proposed security personnel is licensed by the State of California Bureau of security and investigative services personnel. Procedure to submit to the city and the city's law enforcement agency the names and contact information of security personnel, with copies of state-issued licenses and/or permits, governmentally issued identification form, and photographs of uniforms and badges. Acknowledgement from applicant indicating that it shall be responsible for providing this confirming information to law enforcement, with updating information within seven calendar days of a change in security personnel, agents, or representatives.
(x)
Procedures on how each applicant shall have the capability to remain secure during a power outage and ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
(xi)
Identification of a designated security representative/liaison to the City of Commerce, who shall be reasonably available to meet with city staff, as well as law enforcement regarding any security related measures and/or operational issues.
(xii)
A storage and transportation plan, describing in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency.
(xiii)
An affirmative commitment that the applicant will cooperate with the city whenever the city administrator, or his or her designee, makes a request, upon reasonable notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this subsection.
(xiv)
A description and plan of how the applicant will notify law enforcement within twenty-four hours after discovering any of the following:
1.
Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by law enforcement.
2.
Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business.
3.
The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the commercial cannabis business.
4.
Any other breach of security.
(E)
Testing Laboratories (Only). For applicants seeking to operate a testing laboratory, describe operating procedures as required by the applicable state law and regulations, with references to the applicable state law or regulation requiring same.
(F)
Operating Procedures for Non-Storefront Retailer-Delivery Only. Proposed procedures or operating plans shall include:
(i)
Acknowledgement that delivery only retailers may only deliver to customers within a city or county that does not expressly prohibit delivery by ordinance.
(ii)
Provisions relating to vehicle security and the protection of employees and product during loading and in transit.
(iii)
Plans to facilitate the vehicle dispensing of cannabis or cannabis products with a technology platform owned by or licensed to the delivery-only retailer that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the applicant and qualified patient, primary caregiver, or customer:
1.
The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;
2.
The identity of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the permittee;
3.
The type and quantity of cannabis or cannabis products dispensed and received; and
4.
The dollar amount to be charged by the applicant and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received.
(iv)
Procedure on how applicant will maintain a database and provide a list of the individuals and vehicles authorized to conduct vehicle dispensing on behalf of the applicant to the City of Commerce.
(v)
Identification of individuals authorized to conduct deliveries on behalf of the permittee, and proof of a current and valid California driver's license.
(vi)
Procedure on how individuals making deliveries of cannabis or cannabis products on behalf of the applicant will maintain a physical copy of the delivery request (and/or invoice) and will make it available upon request to the agents or employees of the City of Commerce requesting documentation.
(vii)
Description of how the applicant will only permit or allow delivery of cannabis or cannabis products in a vehicle that is (i) insured at or above the legal requirement in California; (ii) capable of securing (locking) the cannabis or cannabis products during transportation; (iii) capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and (iv) does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a cannabis retailer.
(viii)
Procedures on how the applicant proposes to facilitate deliveries with a technology platform owned by or licensed to the non-storefront delivery only retailer that uses global positioning system technology to track and database technology to record and store the following information:
1.
The time that the individual conducting vehicle dispensing on behalf of the non-storefront delivery only retailer departed the licensed premises.
2.
The time that the individual conducting vehicle dispensing on behalf of the non-storefront delivery only retailer completed vehicle dispensing to the qualified patient, primary caregiver, or customer.
3.
The time that the individual conducting vehicle dispensing on behalf of the non-storefront delivery only retailer returned to the licensed premises.
4.
The route the individual conducting vehicle dispensing on behalf of the non-storefront delivery only retailer will travel between departing and returning to the permitted premises to conduct vehicle dispensing.
5.
For each individual vehicle dispensing transaction, the identification of the individual conducting deliveries on behalf of the non-storefront delivery only retailer.
6.
For each individual delivery transaction, the vehicle used to conduct vehicle dispensing on behalf of the non-storefront delivery only retailer permittee.
7.
For each individual vehicle dispensing transaction, the identity of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the non-storefront delivery only retailer.
8.
For each individual vehicle dispensing transaction, the type and quantity of cannabis or cannabis products dispensed and received.
9.
For each individual vehicle dispensing transaction, the dollar amount to be charged by the non-storefront delivery only retailer and received by the individual conducting deliveries on behalf of the non-storefront delivery only retailer for the cannabis or cannabis products dispensed and received.
10.
Proposed plan on how the individual making deliveries on behalf of the non-storefront delivery only retailer will personally verify for each individual vehicle dispensing transaction (i) the identity of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the delivery only retailer and (ii) the validity of the qualified patient's recommendation from a physician to use cannabis for medical purposes or primary caregiver's status as a primary caregiver for the particular qualified patient.
11.
Proposed plan on how a non-storefront delivery only retailer will sell, give away, or donate specific devices, contrivances, instruments, or paraphernalia necessary for consuming cannabis or cannabis products, including but not limited to rolling papers and related tools, pipes, water pipes, and vaporizers in conjunction with a previously agreed cannabis transaction. The equipment may only be provided to qualified patients, primary caregivers, or customers in accordance with Section 11364.5 of the Health and Safety Code.
(G)
Operating Requirements for Cultivation Facilities.
(i)
Plan showing how the cultivation of all cannabis will occur indoors, since outdoor cultivation is prohibited.
(ii)
Procedures ensuring that there will be no visual exterior evidence of cannabis cultivation except for any signage authorized by this code.
(iii)
Procedures on how the general public will be prevented from entering the cannabis cultivation permitted premises (except for the agents, applicants, managers, employees, and volunteers of the commercial cannabis cultivation permittee and agents or employees of the City of Commerce.)
(iv)
Plan showing that the applicant will only cultivate the square footage of canopy space permitted by state law.
(v)
Description and procedures showing that the cannabis cultivation will be conducted in accordance with state and local laws related to electricity, water usage, water quality, discharges, and similar matters.
(vi)
Description and procedures that the cannabis cultivation permittee will comply with all applicable federal, state and local laws and regulations regarding use and disposal of pesticides and fertilizers.
(vii)
Plan showing that pesticides and fertilizers will be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(viii)
Any additional or relevant information showing that the cultivation of cannabis will at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, neighboring properties, and the end users of the cannabis being cultivated, to protect the environment from harm to waterways, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(ix)
Plan and procedures showing that prior to transportation, a cannabis cultivation permittee will package and seal all cannabis or cannabis products in tamper-evident packaging and use a unique identifier, such as a batch and lot number or bar code, to identify and track the cannabis or cannabis products.
(x)
All applicants for a commercial cannabis permit pertaining to cannabis cultivation shall submit the following in addition to the information generally otherwise required for a commercial cannabis permit:
1.
A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting.
2.
A description of a legal water source, irrigation plan, and projected water use.
3.
Identification of the source of electrical power and plan for compliance with applicable building codes and related codes, ordinances, laws and resolutions.
4.
Plan for addressing odor and other public nuisances that may derive from the cultivation site.
(H)
Operating Requirements for Cannabis Manufacturing Businesses.
(i)
Procedures ensuring that there will be no exterior evidence of cannabis manufacturing except for any signage authorized by this code.
(ii)
Procedures detailing how the general public will be prevented from entering the cannabis manufacturing permitted premises (except for the agents, applicants, managers, employees, and volunteers of the commercial cannabis cultivation permittee and agents or employees of the City of Commerce.)
(iii)
Plan describing how cannabis manufacturing will comply with the standards for manufacturing set by state law, regulations and policies.
(iv)
Procedures showing how any compressed gases used in the manufacturing process will be handled, and not stored on any property within the City of Commerce in containers that exceed the amount which is approved by the fire chief and authorized by the commercial cannabis permit. Each site or parcel subject to a commercial cannabis permit shall be limited to a total number of tanks as authorized by the fire chief on the property at any time.
(v)
Plan showing how the cannabis manufacturing facilities will use the hydrocarbons N-butane, isobutane, propane, or heptane or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by the fire chief. Plan must show how these solvents will be of at least ninety-nine percent purity and procedures showing that any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present.
(vi)
Procedure showing that if an extraction process uses a professional grade closed loop CO 2 gas extraction system, that every vessel will be certified by the manufacturer for its safe use. Plan showing that the closed loop systems for compressed gas extraction systems will be commercially manufactured and bear a permanently affixed and visible serial number.
(vii)
Submittal of a certification from an engineer licensed by the State of California that will be provided to the fire chief for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:
1.
The American Society of Mechanical Engineers (ASME);
2.
American National Standards Institute (ANSI);
3.
Underwriters Laboratories (UL); or
4.
The American Society for Testing and Materials (ASTM).
(viii)
A proposed plan of the cannabis manufacturing facility's developing standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.
(ix)
Identification of person(s) who will be using solvents or gases in a closed looped system to create cannabis extracts, and showing said persons are fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely.
(I)
Operating Requirements for Cannabis Distribution.
(i)
Procedures ensuring that there will be no exterior evidence of cannabis distribution except for any signage authorized by this code.
(ii)
Procedures on how the general public will be prevented from entering the cannabis distribution permitted premises (except for the agents, applicants, managers, employees, and volunteers of the commercial cannabis distributor permittee and agents or employees of the City of Commerce.)
(iii)
Plan showing that the applicant will only procure, sell, or transport cannabis or cannabis products that are packaged and sealed in tamper-evident packaging that uses a unique identifier, such as a batch and lot number or bar code, to identify and track the cannabis or cannabis products.
(iv)
Procedures on maintaining a database and providing a list of individuals and vehicles authorized to conduct transportation on behalf of the permittee to the city.
(v)
Identification of individuals authorized to conduct transportation on behalf of the permitted, and proof of current and valid California driver's license.
(vi)
Procedures on how individuals transporting cannabis or cannabis products on behalf of the applicant will maintain a physical copy of the transportation request (and/or invoice) and make it available upon request of agents or employees of the City of Commerce requesting documentation.
(vii)
Procedure showing how the applicant will only transport cannabis or cannabis products in a vehicle that is (i) insured at or above the legal requirement in California, (ii) capable of securing (locking) the cannabis or cannabis products during transportation, and (iii) capable of being temperature controlled if perishable cannabis products are being transported.
(K)
Business Plan. Applications shall include a business plan with as much detail as possible, describing the day-to-day operations of the proposed facility if not otherwise provided in response to the "description of operating procedures." The business plan shall include, in addition to other information deemed relevant by the applicant, the following:
(i)
Description of day-to-day operations, which meet industry best practices for the type of facility the applicant seeks to operate;
(ii)
Proposed hours of operation;
(iii)
Mechanisms for ensuring the facility operates in compliance with applicable state and local laws and regulations;
(iv)
A schedule for commencing operations, including a narrative outlining any proposed construction and improvements, property acquisition, and other start up activities, and a timeline for completion;
(v)
A budget for construction, operation, site acquisition, compensation of employees, equipment costs, utility costs, and other operational costs. The budget should demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds;
(vi)
Proof of capitalization in a form of documentation of cash or other liquid assets on hand, letters of credit, or other equivalent assets; and
(vii)
A pro forma for at least three years of operation.
(L)
Proposed Community Benefits Program Plan.
(i)
Propose commitment to participate in programs designated by the city and/or programs the applicant is proposing to support, including but not limited to, (a) senior citizen programs, (b) city beautification efforts, (c) fund for enforcement of illegal cannabis operations, (d) public safety, (e) housing programs, (f) economic development, (g) infrastructure, (h) general fund, and/or (i) any other proposed city efforts.
(ii)
Proposed plan is to commit to the city's designated and specified amount/percentage of business revenues to fund said program and/or amount to be negotiated (i.e., development agreement), or amount the applicant proposes to commit beyond the city designated amount.
(iii)
Applications should also describe how operation of the proposed facility would satisfy categories of proposed community benefits, including, but not limited to, senior housing, public safety, labor and employment, local enterprise, environmental benefits, and any other public benefits attendant with the facility's operation, including but not limited to site improvement and blight remediation, public infrastructure improvements, revenue generation, mechanisms for remediating perceived or actual negative impacts of the facility, and economic incentives to the city.
(M)
Disclosure of Financial Interests.
(i)
Each application shall include the legal full name, birth date, and government-issued identification type and number for all individuals who have a "financial interest" in the applicant but are not owners.
(ii)
For purposes of this requirement, a "financial interest" means an investment into a commercial cannabis business, or any other equity interest in a commercial cannabis business, except for the following:
1.
A bank or financial institution whose interest constitutes a loan;
2.
Persons whose only financial interest in the applicant is through an interest diversified mutual fund, blind trust, or similar instrument;
3.
Persons whose only financial interest is a security interest, lien, or encumbrance on property that will be used by the applicant; and
4.
Persons who hold a share of stock that is less than five percent of the total shares in a publicly traded company.
(N)
Labor Peace Agreement. For applicants with twenty or more employees, the applicant shall attest that the applicant will enter into a labor peace agreement and will abide by the terms of the agreement, and the applicant shall provide a copy thereof to the city. For applicants that have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement.
(O)
Seller's Permit. The applicant shall provide a valid seller's permit number issued by the California Department of Tax and Fee Administration, if applicable. If the applicant has not yet received a seller's permit, the applicant shall attest that the applicant is or will before commencing operations, apply for a seller's permit.
(P)
Limited Waiver of Sovereign Immunity. Any applicant that may fall within the scope of sovereign immunity that may be asserted by a federally recognized tribe or other sovereign entity must waive any sovereign immunity defense that the applicant may have, may be asserted on its behalf, or may otherwise be asserted in any state administrative or judicial enforcement actions against the applicant, regardless of the form of relief sought, whether monetary or otherwise, under the state laws and regulations governing commercial cannabis activity. The applicant must submit a written waiver of sovereign immunity to the city with the application, which is valid for the period of any development agreement or permit issued by the city to the applicant. The written waiver shall include that the applicant has the lawful authority to enter into the waiver required, the applicant hereby waives sovereign immunity, and the applicant agrees to do all of the following:
(i)
Provide documentation to the city that establishes that the applicant has the lawful authority to enter into the waiver required by this section;
(ii)
Conduct all commercial cannabis activity in full compliance with the state laws and regulations governing commercial cannabis activity, as well as the Commerce Municipal Code, including submission to all enforcement provisions thereof;
(iii)
Allow access as required by state statute or regulation, or by the Commerce Municipal Code, by persons or entities charged with duties under the state laws and regulations governing commercial cannabis activity to any premises or property at which the applicant conducts any commercial cannabis activity, including premises or property where records of commercial cannabis activity are maintained by or for the applicant;
(iv)
Provide any and all records, reports, and other documents as may be required under the state laws and regulations governing commercial cannabis activity;
(v)
Conduct commercial cannabis activity with other state commercial cannabis licensees only, unless otherwise specified by state law;
(vi)
Meet all of the requirements for licensure under the state laws and regulations, as well as the Commerce Municipal Code, governing the conduct of commercial cannabis activity, and provide truthful and accurate documentation and other information of the applicant's qualifications and suitability for licensure as may be requested; and
(vii)
Submit to the personal and subject matter jurisdiction of the California courts to address any matter related to the waiver or the commercial cannabis permit application, license, or activity, and that all such matters and proceedings shall be governed, construed and enforced in accordance with California substantive and procedural law, including but not limited to the AUMA or MAUCRSA.
(Q)
Development Agreement Proposal. Identify at least five areas or topics in the draft development agreement provided as part of the application process (and/or five areas or topics in the application requirements as enumerated herein in this chapter), that the applicant proposes will distinguish its development agreement from other applicants, and submit a plan explaining and supporting how a commitment to these areas may be executed.
(R)
Additional Information. During any phase of the application process, the city may require additional information and documents of the applicant, and all applicants shall provide the information and documents requested by the city within the time specified.
(S)
Payment of Applicant Fee. Each applicant shall pay the applicable fee(s) pursuant to this chapter.
(d)
Any person seeking to obtain a commercial cannabis permit shall submit a written application to the city, dated and signed under penalty of perjury, using the application form adopted by the city for that purpose. The application shall be accompanied by a non-refundable application fee established by resolution of the city council, to defray the costs incurred by the city in the application process set forth in this chapter.
(e)
As part of the application process, the applicant shall be required to obtain all required land use approvals, if and when applicable, from the city's public works and development services department, including a certification from the director of public works and development services department, or his or her designee, certifying that the proposed site meets all of the requirements of Title 19 of this code.
(f)
As a condition precedent to the city's issuance of a commercial cannabis permit pursuant to this chapter, any person intending to open and to operate a commercial cannabis business shall provide sufficient evidence of the legal right to occupy and to use the proposed location. In the event the proposed location will be leased from another person, the applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this chapter and consents to the potential operation of the commercial cannabis business on the owner's property.
(g)
Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes city authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the department of justice to be transmitted to the Federal Bureau of Investigation, every applicant and responsible person of the commercial cannabis business must submit fingerprints and other information deemed necessary by the Los Angeles County Sheriff's, or the city's law enforcement agency, for a background check. No person shall be issued a permit to operate a commercial cannabis business unless they have first cleared the background check, as determined by the City of Commerce, Los Angeles County Sheriff, or the city's law enforcement agency as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City of Commerce to conduct the background investigation, as it deems necessary and appropriate, shall be paid at the time the application for a commercial cannabis permit is submitted.
(h)
After the initial application review and background check, the review committee shall present those applicants who met the initial application review criteria to the next review and selection phase.
(Ord. No. 700, § 2, 9-4-2018)