7-7.18 Retail cannabis business operational requirements

Sec. 7-7.18. Retail cannabis business operational requirements.

This section was recently added by Ordinance 3674, codified in December 2023.

1. Restriction on Sales and Consumption.Cannabis shall not be consumed by any person on the premises of cannabis businesses.

2.No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis business.

3.No persons under the age of twenty-one (21) years shall be allowed on the premises of a cannabis business.

4. Inspections.The investigating officials of the City and its authorized agents shall have the right as otherwise provided for by law to inspect a cannabis business during regular business hours, without notice and without a search or inspection warrant, to ascertain whether there is compliance with the provisions of this Article and state law.

A.Each owner and operator of a cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities for a period not less than seven (7) years. On no less than an annual basis (at or before the time of the renewal of a cannabis business tax registration certificate issued pursuant to Chapter 19, Article 6), or at any time upon reasonable request of the City, each cannabis business shall file a sworn statement detailing the number and amount of sales by the cannabis business during the previous twelve (12) month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and/or fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. Each licensee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the City.

B.Each owner and operator of a cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis business. The register required by this subsection shall be provided to the City Manager upon request.

6. Security.The cannabis business permittee shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the premises. Except as may otherwise be determined by the City Manager, these security measures shall include, but shall not be limited to, all the following:

A.Sensors installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the state of California Bureau of Security and Investigative Services.

B.Panic buttons with direct notification to the Police Department dispatch and shall be configured to immediately alert dispatch for the Police Department.

C.A professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the state of California Bureau of Security and Investigative Services. The permittee shall be required to obtain an alarm permit from the Police Department. Upon request, permittee shall make available to the Police Department all information related to the alarm system, monitoring, and alarm activity.

D.Windows and roof hatches shall be secured from the inside with effective means so as to prevent unauthorized entry and shall be equipped with latches or a similar mechanism that may be released quickly from the inside to allow exit in the event of an emergency.

E.Each cannabis business shall have the capability to remain secure during a power outage and shall 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.

F. Secured Doors.All areas of the business that are not open to the public shall be secured from unauthorized entry by closed and locked doors during public operating hours.

G.Surveillance records shall be maintained for a minimum of one (1) year and shall be made available within twenty-four (24) hours at the request of the City Manager, Police Chief, or their designee.

H.Each cannabis business shall identify a designated security representative/liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures and/or operational issues.

I.A cannabis business shall immediately notify the Monterey Police Department after discovering any of the following:

(i)Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

(ii)Diversion, theft, or loss.

(iii)The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the cannabis business.

(iv)Any other breach of security.

7. Emergency Contact.Each cannabis business shall provide the City Manager with the name and telephone number (both land line and mobile) of an on-site manager or owner to whom emergency notice can be provided at any hour of the day or night.

A.Business identification signage for a cannabis business shall conform to the requirements of Chapter 31, Signs, including, but not limited to, seeking the issuance of a City sign permit.

B.Each entrance to a cannabis business shall visibly post a sign that persons under the age of twenty-one (21) years are not permitted to enter the premises.

C.Each entrance to a cannabis business shall visibly post a sign, consistent with Section 22-29(d), that smoking within twenty (20) feet of the areas adjacent to the cannabis business is prohibited.

D.The cannabis business permit issued by the City pursuant to this Article and the City-issued cannabis business license certificate shall be posted inside the cannabis business in a conspicuous and public location.

9. Odor Control.All cannabis business shall provide an air treatment system that ensures off-site odors shall not result from its operations. This requirement at a minimum means that the facility shall be designed to provide sufficient odor absorbing ventilation and exhaust systems so that any odor generated inside the location is not detected on adjacent properties or public rights-of-way, or within any other unit located within the same building as the cannabis business if the cannabis business occupies only a portion of a building.

10. Background Check.Every owner, manager, supervisor, or employee of the cannabis business must submit fingerprints and other information necessary deemed by the City Manager for a background check by the Police Department and/or its agents and employees to verify that person’s criminal history pursuant to the requirements of this Article.

11.No cannabis business shall provide or cause to be provided any free samples of cannabis goods to any person within the City.

12.Each cannabis operator shall establish minimum training standards for all employees. The City Manager shall have the discretion to require other training for the business operations should the City identify deficiencies or non-compliance issues with City or state requirements.

13.Each cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis business can be provided. Each cannabis business shall also provide the above information to all businesses and residences located within three hundred (300) feet of the cannabis business within thirty (30) days of commencing operations.

14.Each cannabis business shall have an on-site manager present during business hours.

b. Additional Operating Requirements for Storefront Retail Sales.In addition to requirements set forth in subsection (a) of this section, General Operating Requirements, every storefront retail sales cannabis business shall comply with the following:

1.A storefront retailer shall not conduct sales exclusively by delivery.

2.A storefront retailer shall not provide cannabis to an individual in excess of the amount that is consistent with personal possession and use limits allowed by the state.

3.Ancillary manufacturing and cultivation at the premises are not permitted.

4.Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

5.All restroom facilities shall remain locked and under the control of management.

6.Retailers shall only serve customers who are within the permitted premises, or at a delivery address that meets the requirements of this division.

7.The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.

8.Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.

9.No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle.

10.Retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.

11. Limited Access Areas.A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager, Chief of Police, or their designees upon request.

12.Storefront hours that are open to the public shall be limited to the hours of 9:00 a.m. through 9:00 p.m. seven (7) days a week.

13. Deliveries of Medical Cannabis.Medical cannabis may be delivered to individuals aged eighteen (18) and older who possess a valid government-issued identification card, and either a valid county-issued identification card under California Health and Safety Code Section 11362.712 or a physician’s recommendation for themselves or for a person for whom that person is a primary caregiver.

1.A nonstorefront retailer permittee shall be required to deliver medicinal cannabis.

2.The permitted premises of a nonstorefront retailer shall be closed to the public.

3.A nonstorefront retailer permittee shall comply with all the requirements applicable to retailer permittees, except for those provisions related to public access to the licensed premises and the retail area.

4.Medical cannabis may be delivered to individuals aged eighteen (18) and older who possesses a valid government-issued identification card, and either a valid county-issued identification card under California Health and Safety Code Section 11362.712 or a physician’s recommendation for themselves or for a person for whom that person is a primary caregiver. (Ord. 3674 § 11, 2023)