City of Las Vegas Business Licensing – Proposed Regulations Medical Marijuana DRAFT NOTE: These regulations may be included in either ordinances proposed for consideration by the City Council or contained in regulations of the department. This draft has been prepared at the staff level to identify the operational requirements for medical marijuana facilities which may be located within the city of Las Vegas. SECTION 1. Findings SECTION 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: DRAFT Advertise for purposes of this chapter, the terms “advertise,” “advertising” or “advertisement” means the act of drawing the public’s attention to a medical marijuana facility in order to promote the sale of medical marijuana by the facility. Business Associations means those business entities or individuals that are connected to the business as a manager, owner, or investor of an affiliated business. Cannabis Container means a sealed, traceable, food compliant, tamper resistant, tamper evident container or package used for the purpose of containment of medical cannabis which has been approved by the state regulating authority. Cannabis or Marijuana shall be the same, and as may be amended, as defined by Nevada Revised Statutes Chapter 453A. Cultivation Facility has the meaning ascribed to it in NRS 453A.056. Edible marijuana products has the meaning ascribed to it in NRS 453A.101. Edible marijuana products facility has the meaning ascribed to it in NRS 453A.105. Independent testing laboratory has the meaning ascribed to it in NRS 453A.107. Marijuana infused products has the meaning ascribed to it in NRS 453A.112. Marijuana infused products facility has the meaning ascribed to it in NRS 453A.105. Marijuana Cultivation Facility means a fully stand-alone enclosed structure which cultivates, delivers, transfers, transports, supplies or sells marijuana to Medical Marijuana Dispensaries or Facilities for the production of edible marijuana products or marijuana-infused products. Medical Marijuana Establishment means any establishment licensed under this chapter. 1 Facility for the Production of Edible Marijuana Products or Marijuana-Infused Products means a fully stand-alone enclosed structure which acquires, possesses, manufactures, delivers, transfers, transports, supplies or sells at wholesale edible marijuana products or marijuana-infused products to medical marijuana dispensaries. Medical Marijuana Dispensary means a fully stand-alone enclosed structure which acquires, possesses, supplies, sells or dispenses marijuana or related supplies and educational materials to the holder of a valid Nevada registry identification card. Medical Marijuana Establishment means any establishment licensed under this chapter and under NRS 453A and may include a medical marijuana dispensary, edible marijuana production facility, marijuana infused products facility, a marijuana cultivation facility or independent testing laboratory. Registration Certificate means a certificate issued pursuant to NRS 453A and issued by the Division of Public and Behavioral Health of the Department of Health and Human Services of the State of Nevada in accordance with subsection 3 of NRS 453A.326 which is issued as a provisional registration subject to obtaining a local business license under this chapter prior to establishing any such business. Plant means one individual marijuana plant grown at a cultivation facility for the harvesting of useful plant product at any stage of development from seedling to harvest. DRAFT State regulating authority means The Division of Public and Behavioral Health of the Department of Health and Human Services of the State of Nevada and/or any other agency assigned to administer NRS 453A. SECTION 3. Relationship to Nevada Medical Marijuana Code; other laws Except as otherwise specifically provided herein, this article incorporates the requirements and procedures set forth in NRS 453A and Nevada Administrative Code NAC 453A. In the event of any conflict between the provisions of this article and the provisions of NRS 453A and the Nevada Administrative Code NAC 453A, or any other applicable State or local law, the more restrictive provision shall control. SECTION 4. Unlawful Acts A. It shall be unlawful for any person to operate any marijuana establishment in the City without a certificate duly issued by the State regulating authority, and a license issued and in compliance with any and all applicable state laws and the Las Vegas Municipal Code. B. It shall be unlawful for any person to provide marijuana or edible marijuana products or marijuana infused products to a medical marijuana establishment within the City of Las Vegas without a registration certification duly issued by the State regulating authority and a license issued by the City of Las Vegas. C. It shall be unlawful for any licensed medical marijuana establishment located within the city of Las Vegas to accept for sale any marijuana or edible marijuana products or any marijuana infused products from any person who has not obtained a certificate from the state regulating authority and is duly licensed under this chapter for the provision of such products. 2 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 or consumption of marijuana other than those forms of businesses and commerce that are expressly contemplated by Nevada Revised Statute 453A and any administrative rules duly adopted by the state regulating authority. E. It shall be unlawful for any person to sell medical marijuana products at a licensed dispensary at any time other than between the hours of 7:00 am and 8:00 pm daily. SECTION 5. Compliance Permit Required A. Any medical marijuana establishment required, pursuant to NRS 453A or this chapter, to register under Nevada Administrative Code 453A, must obtain a permit from the City Council to secure approval that the application is in compliance with local rules and regulations and the location is appropriate for consideration of a provisional registration certificate and the application has been permitted for consideration of a business license under this chapter. B. The issuance of a compliance permit is not a business license, nor a commitment that such a license to operate a business will be granted. It is not an approval to begin business operations. The issuance of a permit is only a determination that the proposed application meets the criteria for consideration of a business license which after investigation and review may be considered by the City Council for a medical marijuana establishment business license once a provisional registration certificate is issued pursuant to Nevada Administrative Code 453A. C. The City Council shall issue no more permits for dispensaries than allowed by state law or a number less than permitted, as limited by Title 19. Prior the issuance of any permits for cultivation facilities, the Director shall determine the square footage of cultivation facilities required to support the number of dispensaries and recommend limits on cultivation permits to the Council for consideration in the issuance of compliance permits. DRAFT SECTION 6. Permit Application Upon determination by the City Council to accept permit applications for medical marijuana establishments, the Director shall issue a request for permit applications specifying the types of medical marijuana permit applications that may be accepted and the deadline to submit applications. The Director shall: A. Post on the website of the Department that the Director will be accepting medical marijuana establishment applications at least 10 days prior to the published 10 day acceptance period for such submittals. B. Specify the type of medical marijuana establishment permits that will be accepted. C. Provide a timeframe for all submitted applications of not more than 10 days with a 3:00 pm Pacific Standard Time deadline for all submitted applications 10 days after the opening of the application period. D. Return to the entity that submitted the application, any application received at a time other than the time set forth in this subsection. E. Not allow the modification of any application once the deadline for complete applications has passed. F. Reject and not process any applications that are incomplete. The determination of an incomplete application is at the sole discretion of the Director. G. Reject and not process any applications that contain a principal or entity whose license issued pursuant to this chapter has been revoked for non-payment of fees within the last five years or disciplinary action within the last ten years. 3 H. Reject and not process any applications that contain a principal that has been found unsuitable to hold a privilege license within the city or been subject to disciplinary action in any jurisdiction; I. The Director may accept the permit application in whole or in part by electronic submittals in a form acceptable to the Director. SECTION 7. Permit Application Contents The application for each permit and individual location must provide: 1. A complete application per Chapter 6.06. 2. A detailed financial history and a listing of business associations covering at least a tenyear period immediately preceding the year of filing for each principal and any beneficial owner with a five percent interest or more in a medical marijuana establishment. 3. A detailed personal history covering at least a ten-year period immediately preceding the year of filing for each principal and any beneficial owner with a five percent interest or more in a medical marijuana establishment. A lease agreement where rent is based on any percentage of profits or where the agreed to rent is 10% above the standard per square foot rate in the area for typical leased space exclusive of medical marijuana is considered beneficial ownership. 4. One-time, nonrefundable permit application fee of $<< >> 5. A permit application on a form prescribed by the Director. 6. Documentation demonstrating the complete ownership structure of the applicant, including, but not limited to, all articles of organization or incorporation, partnership agreements, stock certificates, state business licenses, taxation documents and current listing of officers, members and/or managers, and any profit sharing agreements made outside of the ownership structure. 7. Documentation on the residency of each principal; 8. List detailing any and all ownership of any medical marijuana facilities in any other states; 9. List of all license numbers for all other active business licenses issued to listed owners by the City of Las Vegas or other jurisdictions within the State of Nevada; 10. A complete and accurate copy of the application and all accompanying documents to be filed pursuant to NRS 453A.332 with the State regulating authority to operate a medical marijuana establishment including, but not limited to: a. A completed application form prescribed by the State regulator; b. All business names, business organization registrations and articles of incorporation or organization, partnerships or joint venture documents; c. The physical address of the proposed medical marijuana establishment; d. All proposals for operations, business plans, building plans, attestations, financial documentation, and required tax reports; e. All documents detailing proposed organizational structure, attestations signed by the owner concerning criminal history, all narratives, and resumes; f. All documentation required concerning the adequacy of the proposed building and construction plans with supporting details; g. All testing, transportation, security, policies, operations manuals, financial, environmental and business plans. h. Any other documentation that has been provided or requested by the State of Nevada. 11. A security plan, including a depiction of security cameras, indicating how the applicant intends to comply with the requirements related to monitoring and securing the licensed DRAFT 4 premises as required by this chapter and including the city licensed burglar alarm contractor and monitoring company; 12. A copy of a commercial general liability insurance policy (bodily injury, property damage, and medical marijuana liability) in a policy limit not less than $2,000,000.00 per occurrence and $5,000,000.00 in aggregate, which specifically includes liability for medical marijuana and names the City of Las Vegas as additional insured. 13. Two copies of a survey sealed by a State of Nevada registered surveyor documenting the compliance of the proposed site with all state distance requirements and the requirements of Title 19; 14. Two copies of the site plan signed by the preparer; 15. A set of building plans, including air filtration systems, lighting, wall and tenant improvements, sealed by a State of Nevada registered engineer, and a layout of the establishment and the principal uses of the floor area, including a depiction of where any operations and services are proposed to occur on the licensed premises. 16. A set of building architectural renderings produced and sealed by a State of Nevada registered architect detailing both interior and exterior renderings including colors, materials and signage; 17. Sign plan showing all proposed exterior and interior signage including the size and full color rendering of signage; 18. A copy of all contracts, proposed contracts for consulting, management, renting or leasing including written documentation stating that the property owner of the facility is fully aware of the property’s intended use. Documentation is to include the name, address, and contact telephone number for the property owner; 19. A copy of all contracts with any other proposed medical marijuana establishment; 20. A complete written explanation of the source of all marijuana products to be cultivated or sold; 21. A recorded deed of ownership or long-term lease demonstrating property rights to the identified parcel or address of the proposed medical marijuana establishment, as well as documentation of the right to use the property as a medical marijuana establishment; 22. A description of the products and services to be provided at the establishment, including an indication of whether the establishment proposes to engage in cultivating marijuana for production of edible marijuana products or marijuana infused products or to transfer directly to a dispensary, if the establishment is proposing to engage in the production of edible marijuana products or marijuana infused products and the types of products proposed, or if the establishment is for the retail sale of medical marijuana or edible marijuana products or marijuana infused products and the type of products proposed. 23. An authorization to submit to fingerprinting and photographing and authorizing the City in writing to obtain information from past and present employers, criminal justice agencies, financial institutions, Federal, State and local government agencies, and other persons and entities. The written authorization shall include consent to release the information to the City for use in connection with the permit application and other City business regulations; 24. The applicant must provide a written statement acknowledging that the applicant understands and agrees that any business or activity conducted or operated under any such license that may be subsequently granted, shall be in full conformity with all 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, and that any violation of any such laws or regulations in such place of business, or in connection therewith, may render the permit and such license subject to immediate suspension or revocation; DRAFT 5 25. The applicant must provide a statement to the Director that the applicant will hold harmless, indemnify, and defend the City against all claims and litigation arising from the issuance of a permit and/or licenses, including any claims and litigation arising from the establishment, operation, or ownership of the medical marijuana establishment, and that a bond to secure such in the amount of $500,000 will be provided prior to the issuance of any license. 26. The applicant shall also sign a release of claims and a hold harmless agreement to the City for its use of all information that has been provided by the applicant or discovered during any investigation thereof. 27. The applicant must sign an acknowledgement that the applicant is seeking a privilege and therefore the burden of proving qualifications to receive such a permit or license is at all times on the applicant, and acknowledge that the granting of a permit and/or license is at the discretion of the City Council and the applicant agrees to abide by the decision without appeal. 28. An accounting plan that includes how sales and inventory will be tracked on a daily basis, weekly and monthly, and how this information will be stored and safeguarded. The names of all computerized software systems that will be used; including a sample of reports and customer receipts. Include a sample of any manual documents: inventory sheets, reports, customer receipts, etc. 29. A narrative detailing the method proposed for the destruction of any unused product along with a description of the proposed documentation to track and verify destruction. DRAFT SECTION 8. Application Completion – Identification and release requirements The applicant including each principal identified by the Director shall submit to fingerprinting and photographing per Chapter 6.06. SECTION 9. Permits - General A. Any entity and/or principal within any entity are limited to no more than two medical marijuana establishment applications and shall not be granted more than two locations for any type of medical marijuana establishments. B. Any entity and/or principal within any entity may not apply for a cultivation facility permit and a dispensary permit. C. Any entity and/or principal within any entity may apply for a production facility permit and only one other type of permit. Production facility permits shall not be issued to the same entity and/or principal for more than two locations within the City. SECTION 10. Permits - Director Review A. The Director shall review all complete permit applications and may refer the permit application in part, or in whole to other City departments and may refer to the Las Vegas Metropolitan Police Department for investigation, review and comment. B. The Director shall reject and return to the applicant any application that fails to meet the criteria established in this chapter or the regulations of the State regulating authority. The Director will only complete reports and recommendations on applications that meet each requirement of this chapter to the satisfaction of the Director. C. The Director shall prepare a report on the merits of each application, the potential suitability of any and all principals and the application’s compliance with the provisions of this chapter and Chapter 19. In recommending the granting or denying of such permit, the Director shall 6 D. E. F. G. H. give particular consideration to the identity, character and background of the applicant, capacity, capitalization, past business practices of the applicant, operational plan, organizational structure, interior floor plans of the buildings and site plan as to parking, traffic movement and aesthetics; security and environmental requirements; 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 and order and welfare of the public. No permit shall be recommended for approval that does not meet all requirements of Chapter 19 and this chapter. The Director may inspect or cause to be inspected each proposed location, may call for and conduct interviews, and shall investigate each complete application. Applicants shall pay the application fee and all inspection fees that may be required therewith. After permit application forms, accompanying documents, and appropriate investigation are complete to the satisfaction of the Director, a report and recommendation shall be referred to the City Council for a public hearing which may be held at the same time and place as a hearing on any land use application required for the proposed medical marijuana establishment. Public hearings will be held for dispensary, edible production facilities and cultivation permit applications. Public hearings for dispensaries will be held in conjunction with any proposed land use approval application before the City Council. The Director shall consider and act upon all local permit and license applications in accordance with the standards and procedures set forth in this article for medical marijuana independent laboratory applications, however, no public hearing shall be required for any license for a medical marijuana independent laboratory. The decision of the Director is considered a final action of the Director. The Director may deem an application “withdrawn” rather than “denied” if an applicant fails to appear at a schedule hearing and there is no opposition to the permit. DRAFT SECTION 11. Council Action on Permits A. The City Council may approve, deny or take such other action with respect to such applications as it considered appropriate. The burden of showing the qualifications, acceptability or fitness for such permit and the location is upon the applicant. B. The City Council may not approve more permits for dispensaries than allowed by State law. The Council shall determine 30 days prior to hearing permit applications the number of each type of facility permits shall be issued. The Council may reopen the medical marijuana establishment permit process after the evaluation of applications received and at subsequent times when the Council deems necessary. 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 Council to not be suitable under this Chapter. D. The City Council shall not approve a permit that would allow one principal or entity to receive permits for more than 33 percent of the total number of square footage of cultivation approved by the Council pursuant to this chapter or 33 percent of the number of permits issued in any one type of medical marijuana establishment, as establishment pursuant to this chapter. E. Upon approval of a permit, the Director shall prepare a notice to the State regulating authority outlining that the proposed location has been found in conformance with land use restrictions and that the application is in conformance with local rules and regulations and the application, and if certified by the State regulating authority may be considered for a business license. 7 F. Upon issuance of a permit by the City Council, the Director may begin investigation of application for suitability of principals. G. If the Council denies a permit or the State regulating authority fails to rank the application presented within limits in the number of facilities established by the Council, the applicant may reapply for a permit no sooner than one year from the date of the denial by the Council. H. Any permit is considered surrendered by the applicant if a business license has not been granted within 18 months of the issuance of a provisional certificate issued by the State regulating authority. SECTION 12 Medical Marijuana Establishment – Licenses A. Applications for licenses must comply with LVMC Chapter 6.06 and submit a provisional registration certificate from the state regulating authority. Licenses shall be issued for two year periods with license fees due annually. The City Council may request the review before the Council of any or all licenses prior to the two year renewal. B. The City Council may issue licenses for the following types of medical marijuana facilities: a. Medical Marijuana Dispensary b. Marijuana Cultivation Facility c. Independent Testing Laboratory Facility d. Edible-Marijuana or Marijuana Infused Products Facility C. Prior to scheduling a license for approval or renewal consideration by the City Council, the Director must have received: a. A report on the suitability of each Principal completed by the referring department; b. A bond in the amount of $50,000 from a surety company qualified and authorized to do surety business in the State of Nevada in the penal sum of $50,000 for all license fees and penalties owing against such license; c. A medical marijuana license applicant may not exercise any of the privileges of a medical marijuana establishment license until the City Council approves the license and final pre-operational inspections are conducted and all applicable inspections and license fees are paid. D. Prior to issuance of a license, the licensee must designate one principal, all key employees and all management personnel to demonstrate competence in local regulations as evidenced by a written demonstration administered by the Director. E. Medical marijuana establishment licensees shall provide insurance coverage as set forth in this section. The Director shall not issue a license or renew a license without proof of insurance. Any failure to maintain insurance or provide proof of insurance is ground for the Director to suspend the license. The intent of the required insurance is to protect the City from any liability in the issuance of medical marijuana licenses and the consumer should there be any claims, suits, action, costs, damages or expenses arising from any negligent or intentional act or omission of the marijuana licensees. Marijuana licensees shall furnish, in the form of a certificate of insurance, satisfactory to the Director, the following kinds and minimum amounts of insurance. a. Commercial general liability insurance: The licensee shall at all times carry and maintain commercial general liability insurance and if necessary, commercial umbrella insurance for bodily injury and property damage arising out of the licensed activities. This insurance shall cover such claims as may be caused by any act, omission, or negligence of the licensee or its officers, agents, representatives, assigns, or servants. The insurance shall also cover bodily injury, including disease, illness and death, and property damage arising out of the licensee’s premises/operations, products, and personal injury. The amount of the insurance DRAFT 8 minimum shall be $2,000,000.00 per occurrence and $5,000,000.00 in aggregate, which specifically includes liability for medical marijuana. b. Additional insured: The City of Las Vegas shall be named as an additional insured on all general liability, umbrella, and excess insurance policies. All policies shall be primary over any other valid and collectable insurance. F. Before the Director issues a license to a medical marijuana establishment, the applicant shall procure and file with the City evidence of proof and sufficient bond in the amount of fifty thousand dollars ($50,000) with corporate surety thereon duly licensed to do business with the State of Nevada, approved as to form by the city attorney, and conditioned that the applicant shall report and pay all City license fees and any penalties. A corporate surety shall not be required to make payments to the City claiming under such bond until a final determination of failure to pay fees and penalties due the City has been made by the Director. All bonds required pursuant to this subsection shall be current at such times as the bondholder’s license is renewed and in force for the entire renewal period. G. Hold Harmless and Bond. The applicant must provide a statement that the applicant will hold harmless, indemnify, and defend the City against all claims and litigation arising from the issuance of a license, including any claims and litigation arising from the establishment, operation, or ownership of a medical marijuana establishment, and provide and maintain a bond to secure such in the amount of $500,000 made payable to the City upon the notification of any suit or legal action. DRAFT SECTION 13 Ownership Residency. For purposes of this section, principals with at least fifty percent (50%) of the ownership interest of any medical marijuana establishment shall be residents of the State of Nevada for at least six (6) months prior to the submittal of application for a permit. Each principal must provide verification that the individual resides in the State of Nevada; or has taken verifiable actions to make Nevada his or her home indefinitely with no present intent to reside in another state. A. Provide proof of Nevada residency by submitting at least two of the following items with the application for a permit or request for suitability as a principal in one of the following forms: a) Valid voter registration card with a Nevada address; b) A valid, unexpired Nevada motor vehicle registration or driver’s license or other State identification card issued by the State of Nevada; c) Income tax statement showing a Nevada address; d) Deed/Title, Mortgage, Rental/Lease agreement for the individual; e) Other document, as may be acceptable to the Director. SECTION 14 Expiration and Surrender of a License Medical Marijuana Establishment licenses issued pursuant to this chapter shall be and remain valid until the earlier of expiration or the term of two (2) years, suspension or revocation, or the failure to pay all required fees. Ownership or Location Changes. A medical marijuana establishment must surrender its business license and reapply for a medical marijuana establishment permit when the Department is accepting applications: 9 A. Before an additional person gains an ownership interest in the medical marijuana establishment; and B. Any time there is a change in the location of the medical marijuana establishment. SECTION 15 Denial of a Permit or License. The Director shall deny and not process a permit application, shall recommend denial of any license, and shall recommend denial of suitability of any principal or a key employee for a medical marijuana establishment for any of the reasons contained in LVMC 6.06.250 and 6.06.260 for disciplinary action, without being limited thereto, or for any other reason consistent with the following provisions: A. Conviction, (a plea of nolo contende shall be considered a guilty plea for purposes of this chapter), or violation of any crime of violence, any crime involving narcotics, fraud, gambling, loan sharking, bookmaking, theft, moral turpitude, or any crime involving evasion of taxes, or any other crime of moral turpitude indicating a lack of business integrity or business dishonesty, whether committed in the State of Nevada or elsewhere, whether denominated as a felony, gross misdemeanor or as a misdemeanor and notwithstanding the passage of time since the conviction; B. Failure of the proposed business or activity to be operated in compliance with state laws, state regulating authority regulations or this chapter; C. The applicant, or any principal thereof, having been identified by any law enforcement agency, legislative body or crime commission as a member of, or an associate of, organized criminal elements; D. Making any false statements in the application or as to any other information presented as part of the application process; E. Evidence of current or prior unlawful or nuisance-creating operation as a permitee or licensee in this or another jurisdiction; F. Applicant, or any principal thereof is presently under indictment or the subject of criminal complaint for any of the crimes described in subsection (1) of this section; G. Making or causing to be made any statement on an application or document provided to the City in connection with an application, which statement was at the time and in light of the circumstances under which it was made, knowingly false or misleading; H. Inadequate security plan or accounting plan, proposed location in an area not authorized by Title 19 of the Las Vegas Municipal Code, and a land use permit for said facility at the proposed location has not been granted; I. Any previous license held by a person or principal that has been revoked for nonpayment of fees or disciplinary action. J. If any person listed on the application as an owner, officer, board member, operator, or on-site key employee has been involved in any prior operation of an unpermitted dispensary, collective or cooperative, or has in any manner dispensed or transferred marijuana without first obtaining a license from the City. DRAFT SECTION 16 Medical Marijuana Establishment Restrictions A. Location - Medical Marijuana establishment licenses may not be located in the following: 1. Where law enforcement access, without notice or cause, is limited; 2. On federal lands; or 3. Within another business 10 B. No on-premise consumption - A medical marijuana establishment may not allow: 1. the use, smoking, ingestion or consumption of any marijuana or marijuana infused product on the licensed premises; C. Signs and Advertising - Any person or premises licensed as a medical marijuana establishment shall comply with all City ordinances regulating signs and advertising. In addition, no licensed medical marijuana establishment shall use any advertising material that is misleading, deceptive, or false, or that, as evidenced either by the content of the advertising material or by the medium or the manner, in which the advertising is disseminated, is designed to appeal to minors. All signs, packaging and advertising shall contain the words “For registered Nevada medical marijuana patients only.” Provided, however, this language shall not be required to be displayed upon any sign identifying a medical marijuana dispensary. D. Advertisement locations - Except as otherwise provided in this subsection, it shall be unlawful for any person licensed under this article or any other person to advertise any medical marijuana or medical 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: 1. Any Off-Premise Sign or other outdoor general advertising devise as defined by LVMC Title 19; 2. Any sign mounted on a vehicle; 3. Any hand-held, human signage or other portable sign; 4. Any handbill, leaflet or flier directly handed to any person, deposited, fastened, thrown, scattered, cast, or placed in a public place, left upon a motor vehicle, or posted upon any public or private property without the consent of the property owner. 5. Any electronic, video, radio or broadcast medium available to the general public. DRAFT The prohibition set forth in this paragraph shall not apply to: 1. Any sign located on the same lot as the medical marijuana establishment which exists solely for the purpose of identifying the location of the medical marijuana establishment and which otherwise complies with the state regulating authority, the conditions of approval of the license and other applicable city laws and regulations; or 2. Any advertisement contained within online media, a newspaper, magazine, or other periodical of general circulation within the city; or 3. Advertising which is purely incidental to sponsorship of a charitable event by a medical marijuana establishment. E. Minors Prohibited - The presence of minors, under the age of 21 years of age, on the premises of a medical marijuana establishment is prohibited unless they are in a dispensary and the minor is a qualified patient and they are in the presence of their parent or legal guardian. 1. No licensee shall cause, permit or allow, either by act or by failure to act, the violation of subsection E of this section. Any violation of subsection E of this section shall subject the licensee of the medical marijuana establishment where the violation occurred to the immediate suspension of the license. F. Testing of Medical Marijuana - Medical marijuana facilities shall use an independent, certified and City licensed laboratory to analyze a representative sample from each 11 separately procured batch of dried medical marijuana in accordance with State regulating authority requirements. G. Pesticides - Any medical marijuana from which the representative sample analysis tested positive for a pesticide or other contaminant at a level which exceeds the local, State, or Federal regulatory or statutory standard for the food and drug supply, shall not be provided to a customer, dispensaries or edible-infused product establishment and shall be destroyed forthwith. Any medical marijuana provided to customers shall be properly labeled in strict compliance with State and local laws. H. Transportation - Medical marijuana may only be transported by a licensed cultivation facility or licensed edible production facility/marijuana infused production facility. Transportation must meet all requirements of the state regulating authority. 1. A vehicle for the transportation of medical marijuana must not have any visible logos, signs or depictions indicating the contents of the vehicle are medical marijuana products or that the product may be from a licensed medical marijuana establishment. 2. All products must be secured in an electronically locked and tamper-proof container secured to the actual vehicle. 3. All required transportation logs must be in the vehicle and made available to law enforcement at any time the log is inspected. Upon being stopped by a law enforcement officer within the city, each driver must identify to the officer that the product contained within the vehicle is medical marijuana from a licensed medical marijuana facility and present valid work cards, identification from the medical marijuana facility, the route the vehicle was authorized to travel and present the actual log for inspection. 4. The driver must note in the log all stops the vehicle makes during the route, including stops required by law enforcement. The time of each stop, the location, the reason for such stop and the distribution of any product must be included in the log. The log must be signed by the receiver of any product, and the product and verification entered into the electronic tracking system approved by the state regulating authority at the point of transport and distribution. 5. All products must be contained in sealed tamper proof, tamper evident packaging and labeled with a weight measurement consistent with the log documentation. 6. Wholesale product which is packaged for transport to an edible-infused products facility cannot exceed 1-pound tamper proof packages. 7. Wholesale product which is packaged for transport to a dispensary must be individually packaged in tamper-proof and trackable packages of not more than 2 and 1/2 oz. and aggregated into packages of not more than 1 pound noting the number of individual packages, the total weight and all tracking information required by the state regulating authority. I. Employees - It is unlawful for a licensee to employ any person who is not the holder of a valid work card and registration/I.D. card issued by the state regulating authority and for the card not to be in the employee’s possession while on shift. DRAFT SECTION 17 Facilities not located within the City jurisdiction. A medical marijuana cultivation facility or a medical marijuana edible or infused products facility which has obtained an operational premise license in a jurisdiction other than the City of Las Vegas may apply to the Director for a license to provide medical marijuana and/or products to 12 dispensaries located within the city. All applicants must meet the requirements set forth in this chapter and be properly licensed within the jurisdiction in which they are located. a) b) c) d) e) f) g) A certification permit for such businesses are not required; A full and complete license application is required, on a form determined by the Director; Applicant shall provide proof of licensing in another jurisdiction to the Director; Applicant must meet all criteria for the applicable license; Licensee must comply with all provisions of this chapter; Licensee shall pay all annual fees; Licensee shall pay all quarterly gross revenue fees based on all products sold to dispensaries licensed within the corporate boundaries of the City of Las Vegas; and, h) All principals must be found suitable to hold such license within the City of Las Vegas and the license must be approved by the City Council. SECTION 18 Security Requirements. All medical marijuana facilities shall comply with the following security requirements: A. Display of identification badge - All employees on the licensed premises shall be required to hold and properly display an identification badge issued by the licensed employer at all times while on the premises. All employees must have, in their possession, any state regulating authority issued registered agent card and a valid work card. B. Alarm systems - At a minimum, each licensed premises must have a security alarm system on all perimeter entry points and perimeter windows. Motion detectors, pressure switches, duress, panic, and hold-up alarms are also required in a security plan submitted and approved by the Director. The alarm system must be a centrally monitored fire and burglar alarm system, and monitored by an alarm company properly licensed with the City, and whose agents are properly licensed and registered under applicable laws. C. Surveillance system - A 24 hour surveillance system is required to monitor the interior and exterior of a medical marijuana facility and must be accessible to authorized law enforcement in real-time. a. The system must be in operation at all times, and is required to be a complete video surveillance with minimum camera resolution of 640x470 pixel and must be internet protocol (IP) compatible and recording system for controlled areas within the licensed premises and entire perimeter enclosing a marijuana products facility, to ensure control of the area. The requirements include image acquisition, video recording, management and monitoring hardware and support systems. b. All recorded images must clearly and accurately display the time and date. Time is to be measured in accordance with the U.S. National Institute Standards and Technology standards. c. All recorded images and cameras shall allow for the clear and certain identification of any individual or activity on the licensed premises. d. The surveillance system storage device must be secured on-site in a lock box, cabinet, closet, or secured in another manner to protect from employee tampering or criminal theft. e. The 24 hour surveillance system is required to record and all recording must be kept for a minimum of ninety (90) days. D. Security Guards - A minimum of three (3) security guards duly licensed with the State of Nevada shall be onsite at all cultivation and dispensaries at all times, and shall not possess DRAFT 13 E. F. G. H. firearms or tasers. A minimum of one (1) security guard shall be required at all edible or infused production facilities. a. The establishment shall direct security guards to be responsible for ensuring compliance with all local and state regulations regarding the facility and must patrol parking areas and outdoor premises for loitering, unlawful sale of medical marijuana by customers, and consumption of medical marijuana. b. Security guards shall be directed to report to the establishment all unlawful sales of medical marijuana observed on the premises. The establishment shall immediately cease providing medical marijuana to such customer or dismiss any employee observed making such transactions and report within twenty-four (24) hours to the Las Vegas Metropolitan Police Department the observed transaction and provide any surveillance documentation. Notice of Theft - Any theft of marijuana seedlings, clones, plants, trim or other plant material, extract, infused product, or other item containing marijuana must be reported to the Las Vegas Metropolitan Police Department and Business Licensing in writing within 24 hours of occurrence. Emergency Call - A sign shall be posted at the entrance to the location containing the name and functioning telephone number of a 24-hour on-call member engaged in the management of a medical marijuana establishment who shall receive, log, and respond to complaints and other inquiries. Magnetic Locks - All doors, secure areas and storage facilities must have a magnetic or electronic locking system which tracks the name assigned to an access key, and time of access to all corresponding access keys. Cultivation Facility - Any facility open for the cultivating of medical marijuana must meet all requirements set by the Building Official and which at a minimum shall: a. Maintain complete video surveillance within the licensed premises and entire perimeter fencing and gates enclosing a cultivation facility, to ensure control of the area. b. Control and monitor through the video surveillance system all access areas, security rooms/areas and all points of ingress/egress to limit access to these areas; all points of ingress/egress to the exterior of the licensed premises; and all point-of-sale (POS) areas must have fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet of all entry and exit points. c. Secure all entrances and exits to the facility with magnetic locks and maintain surveillance video recorded from both indoor and outdoor vantage points, and such system must be capable of clearly identifying any activities occurring within the facility or within the grow rooms in low light conditions. d. Secure all perimeter fencing and gates enclosing a cultivation facility with full video surveillance capable of clearly identifying any activities occurring within twenty (20) feet of the exterior of the perimeter. Any gate or other entry point that is part of the enclosure for an outdoor growing operation must have fixed camera coverage capable of identifying activity occurring within a minimum of twenty (20) feet of the exterior, twenty-four (24) hours a day. A motion detection lighting system may be employed to illuminate the gate area in low light conditions. e. Secure areas where marijuana is grown, cured, manufactured or destroyed, with a camera placement in the room facing the primary entry door, and in adequate fixed positions, at a height which will provide a clear, unobstructed view of the regular DRAFT 14 activity without a sight blockage from lighting hoods, fixtures, or other equipment, allowing for the clear and certain identification of persons and activities at all times. I. Edible Marijuana Products Facility - Any facility open for the production of edible marijuana products must meet all requirements set by the Building Official which at a minimum shall: a. Maintain in operation at all times, complete video surveillance within the licensed premises which monitors all controlled access areas, security rooms/areas and all points of ingress/egress to limited access areas, all points of ingress/egress to the exterior of the licensed premises, and all delivery and shipping, labeling and packaging areas must have fixed camera coverage capable of identifying activity occurring within a minimum of twenty feet. b. Secure and provide video monitoring of all entrances and exits to the facility and shall record from both indoor and outdoor vantage points, with a system capable of clearly identifying any activities occurring within the facility. c. All medical marijuana products must be stored in a secured room or device which contains limited entry controlled by an electronic locking system which tracks entry and time of all electronic access. J. Dispensary Security Requirements - Any facility open for dispensing of medical marijuana must meet all requirements set by the Building Official and at a minimum contain the following areas meeting the detailed conditions, separated and segregated with an electronic locking system: 1. Waiting area containing only one entrance for the public with both surveillance cameras which is visible immediately from one fixed staffed security station; 2. Consultation room where medical marijuana product is viewed for purchase must be: a. Separated and segregated from any waiting area; b. Have no obscured windows or viewing area that may be seen from the public right of way or waiting area; c. Any customer allowed to enter any room where medical marijuana is viewed for purchase is required to be accompanied on a one to one basis by an employee of the establishment; d. Only sample products may be viewed for purchase in such a room; e. Customers may not remove any medical marijuana product from the consultation room. 3. Storage room and storage device in which all products for sale must be stored in a separated and secured room. a. A storage device to secure all products must be onsite and approved by the Las Vegas Metropolitan Police Department within the secured storage room; b. All products whether for viewing or sale must be stored and locked within the storage device whenever the facility is closed; c. The room must meet the Building Officials standards for odor control; d. The room must be under surveillance by the camera system at all times. e. One room may store both product and money and legal tender, however separate storage devices must be maintained and both must be under video surveillance. 4. Transaction room for all product transactions and money or legal tender and receipts must be kept in a separated secured area from customers. Such area may be visible by glass to customers. a. No monetary transactions may be made in the same room or viewed from a room where medical marijuana is displayed. b. No monetary transactions may be made in a room that is directly accessible to a customer or the waiting area; employees making transactions may be DRAFT 15 visible to the waiting area, but must be separated by a secure structure and all transactions must be visible to the surveillance system. c. All medical marijuana products must be placed in an opaque bag or cover that does not allow the product to be visible from outside of the bag or cover and closed by the attendant of the dispensary prior to transfer to a customer. SECTION 19 Cultivation Facility A cultivation facility license allows the licensee to produce marijuana for sale at wholesale to licensed marijuana production facilities and to licensed dispensaries. Marijuana cultivation must take place within a fully enclosed secure indoor facility or greenhouse with rigid walls, a roof, and doors. To obscure public view of the cultivation area indoor premises, all doors and openings must be secured by indoor walls which block all view of cultivation and its ancillary uses. A. The operating documents of a registered cultivation center shall include procedures for the oversight of the cultivation facility, a marijuana plant monitoring system including a physical inventory recorded weekly, a marijuana container system including a physical inventory recorded weekly, accurate record keeping and a staffing plan approved by the state regulating authority. B. A cultivation facility shall implement a security plan approved by the Las Vegas Metropolitan Police Department, which must include: facility access controls, perimeter intrusion detection systems, personnel identification systems, 24 hour surveillance system to monitor the interior and exterior of the cultivation center facility and accessible to authorized law enforcement in real-time. C. Required submittals sets of building plans including but not limited to: grow lighting specification, required and available electrical loads, mechanical exhaust and air filtration systems sealed by a State of Nevada registered electrical, mechanical engineer or equivalent. D. A cultivation facility must meet all odor control regulations established by the building department and respond within 24-hours to any complaints concerning odors and file with business licensing and the Building Official all action taken to address odor complaints. The Building Official, upon determination of the existence of detectable odor from any cultivation facility, may require additional measures by the facility to control such odor and a timeframe for the implementation of such measures at any cultivation facility. Failure to complete required improvements within the timeframe specified by the Building Official is grounds for suspension of the license by the Director. E. All cultivation of marijuana must take place in a standalone, enclosed and locked building at the physical address within the limits of the county of Clark provided to the department during the permit process. F. The cultivation facility location shall only be accessed by the cultivation facility registered agents, state and local inspectors, law enforcement or other emergency personnel, and contractors working on jobs unrelated to medical marijuana, such as installing or maintaining security devices or performing electrical wiring. All names of all individuals accessing the facility for such purposes must be recorded in a log and such log must be available for DRAFT 16 G. H. I. J. K. L. M. N. O. P. Q. R. S. inspection. The log must include the times of arrival and departure of all persons accessing the building. All contractors must hold a City of Las Vegas Business License. Comply with all regulations of the state regulating authority. A cultivation facility is restricted to wholesale transactions and may not sell or distribute any marijuana to any individual or entity other than a registered and licensed dispensary or edible or infused marijuana production facility under this Chapter. All harvested marijuana for distribution to a dispensary must be packaged in a labeled medical marijuana container of not more than two and one-half ounces and entered into a data inventory collection system approved by the state regulator. A cultivation facility agent shall notify local law enforcement and the Department within 24 hours of the discovery of any loss or theft. Notification shall be made by phone or in-person, or by written or electronic communication. The cultivation facility shall notify the Department to conduct a pre-operational inspection prior to accepting any plant materials into the facility and pay all related inspection fees. A cultivation facility shall comply with all state and federal rules and regulations regarding the use of pesticides. Cultivation is limited to the interior of a building. Such building proposed for cultivation of medical marijuana must meet all applicable building standards and certified by the Building Official for such use. No entrance, exit or opening in the building may allow a view of the production of marijuana. Each entrance, exit or opening must provide a wall adequate to obscure all view of the cultivation process. No cultivated medical marijuana or unusable marijuana may be allowed to leave the cultivation area in any container that allows a view of the product, and such containers may not be marked as marijuana or cannabis. All containers must be clearly marked with the name and identification of the cultivation facility, and the destination including the name of any dispensary or edible or infused production facility. Cultivation facilities may have areas dedicated to three types of plants: a. Mature or harvestable plants which will be harvested within 30 days; b. Seedlings which are plants in the premature state and will not be harvested within 30 days; and, c. Mother plants which are plants not harvested for production or dispensary Cultivation by each licensee is limited to 99 plants in the harvestable state at any one licensed cultivation facility. A cultivation facility may have only one-third of the total square footage of the building dedicated to growing any plants. A physical barrier must be in place to restrict access to the premises including a wall and controlled access gate for vehicular traffic. The maximum amount of space for marijuana cultivation as measured by total building square footage is __________. Applicants must designate on their permit application the size category of the cultivation premises and the amount of actual square footage of their premises that will be designated as plant canopy. Licenses will be allocated with conditions restricting the square feet of the facility for plant canopy. Licenses will be designated in 5000 square foot increments. DRAFT 17 T. The Council may reduce the square footage of any applicant or licensee if: 1. the square footage designation to plant canopy exceeds the maximum of __________aggregated square feet set for all permits; 2. The Council determines the proposed facility is not in the interest of the surrounding community; 3. If fifty percent production space used for plant canopy in the licensee’s operating plan is not met by the end of the first year of operation, the Council may reduce the tier of licensure. U. The maximum allowed amount of marijuana on a cultivation establishment premises at any one time is six months of their annual approved harvest. All harvest must be secured in a separated room with electronic access locking systems that identifies access to such room by access key holder and meets standards set by the Las Vegas Metropolitan Police Department for a secure storage device. All stored product must be included in the inventory control system with a reference number and location within the secured storage device. V. All marijuana that is intended to be removed or transported from a cultivation facility to an edible or infused production facility or a dispensary shall be staged in an area known as the “quarantine” location for a minimum of twenty-four hours. Transport manifest with product information and weights must be affixed to the product. At no time during the quarantine period can the product be handled or moved under any circumstances. All transportation logs must travel with the product and be made available to any law enforcement officer or business licensing during inspections or routine stops. DRAFT SECTION 20 Cultivation Limit The Council may enter into agreements with other local governments to restrict cultivation to a regional location or a regional limit based on square feet of building space that may be licensed for the cultivation of medical marijuana to supply licensed dispensaries within the City. SECTION 21 Independent Testing Laboratories A. Independent Testing Laboratories meeting certification by the state regulating authority are only allowed to have marijuana onsite in the manner described by the state regulating authority and must have records to prove the all marijuana and marijuana-infused products on site are for testing purposes only. B. The facility must comply with all provisions of this chapter and ensure that products meet the minimum or maximum criteria established for edible, infused or cultivated products available to be produced or sold to city licensed dispensaries. SECTION 22 Edible Products Facility A marijuana products facility license allows the licensee to process, package, and label usable marijuana and marijuana-infused products for sale at wholesale to marijuana dispensaries. A. Onsite Product - A marijuana products facility is allowed to have a maximum of 30 days of their average useable marijuana and 45 days of their total production on their licensed premises at any one time. 18 B. Types of Processing allowed at facilities licensed within the City Limits. Production facilities are limited to certain methods, equipment and mediums when creating marijuana extracts. 1. A Production facility may use a professional grade closed loop CO2 gas extraction system where every vessel is rated to a minimum of nine hundred pounds per square inch and follow all applicable fire, safety and building codes in processing and the storage. The CO2 must be of at least ninety-nine percent purity. 2. A production facility may use heat, screens, presses, steam distillation, ice water and other methods without employing solvents or gases to create kief, hashis, bubble hash, or infused dairy butter, or oils or fats derived from natural sources. 3. A production facility may not use solvents or gases to produce extracts for the sale to city licensed dispensaries. 4. Parts per million for one gram of finished extract cannot exceed 500 parts per million or residual solvent or gas when quality assurance tested. C. Inspections. 1. The Department will conduct a pre-operational inspection at all infused products facilities to determine whether the facilities, methods, practices and controls used in the manufacture, processing, or holding of marijuana-infused products conform to or are operated or administered within the requirements of this Chapter; 2. Each infused products facility must have a current health permit issued by the Clark County Health Department or the state regulating authority which ensures that the manufacturing practices conform to state regulations to ensure food products for human consumption are safe and have been prepared, packed and held under sanitary conditions; 3. Licensed infused product facilities shall immediately allow the Department to inspect the premises for all fixtures, furniture, machinery and devices used for preparing marijuana-infused products; D. Allowed Products - Products allowed to be produced or sold at city licensed facilities are limited to the following: 1. No marijuana infused products requiring refrigeration or hot-holding or considered potentially hazardous food shall be manufactured, sold or distributed at such facility. 2. No infused products may contain alcoholic beverages as defined and regulated by Chapter 6.50. 3. No product may have the appearance of candies, gum or other like products which may be attractive to children. 4. No infused water or beverages may be produced or bottled for drinking as a beverage; 5. Products must be produced for individual consumption only and not intended for general or cooking use such as sauces, butters, food or drink additives; 6. Baked products infused with medical marijuana (such as brownies, bars, cookies and individually sized breads and pastries), tinctures, and other non-refrigerated DRAFT 19 items are acceptable for production and sale. Such product must not be viewed from or depicted on the tamper resistant and tamper evident packaging. 7. The maximum number of servings. The maximum number of servings in any one single unit of marijuana-infused product meant to be eaten or swallowed is ten services or one hundred milligrams of active THC. A single unit of marijuanainfused extract for inhalation cannot exceed one gram. E. Package and Labeling - All items shall be individually wrapped or packaged at the original point of preparation and meet all of the following criteria. 1. Smaller, like items such as small candies or cookies may be packaged into larger quantities in a single wrapped tamper proof and tamper evident package. 2. Labels must meet approval of the state regulating authority and provide the above warnings in red bold font measuring at least standard font size 14; 3. Labels must have a medical or simple appearance without pictures or depictions of the product or ancillary ingredients; 4. Labels must not have the appearance of similar labels found in a grocery store; 5. Any changes in labels approved in the permit application and licensing process must be approved for conformance with this chapter prior to manufacture and use. 6. The City may create a logo that must be placed on all usable marijuana and marijuana-infused products. 7. The packaging of the medical marijuana infused products shall conform to the labeling requirements of the state regulating authority and shall include the following information in English in red bold font measuring at least standard font size 14 on each product offered for sale or distribution: i. The name and address of the registered cultivation center where the item was manufactured; ii. The common or usual name of the item; iii. All ingredients of the item, including any colors, artificial flavors, and preservatives, listed in descending order by predominance of weight shown with common or usual names; iv. The following phrase: “This product was produced in a medical marijuana cultivation facility, not subject to public health inspection, that may also process common food allergens.” v. The pre-mixed total weight (in ounces and grams) of usable cannabis in the food product; vi. A warning that the item is a medical marijuana-infused product and not a food must be distinctly and clearly legible on the front of the package; vii. A clearly legible warning emphasizing that the product contains medical cannabis and is intended for consumption ONLY by registered qualifying patients; viii. A clearly legible warning emphasizing the health risks associated with the consumption of the product when appropriate. Any and all labels that apply must be present on the package: ix. “Should not be used by women that are pregnant or breast feeding,” DRAFT 20 x. “Keep out of reach of children,” xi. “Caution: When eaten or swallowed, the intoxicating effects of this drug may be delayed by two or more hours.” xii. “This product may be illegal outside of the state of Nevada.” xiii. Date of manufacture and “use by date;” xiv. The potency of the THC in the product; F. Branded Merchandise. No giveaways, coupons or distribution of branded merchandise is allowed. No merchandise may be produced or endorsed by any medical marijuana establishment or allow any approved logo or business name to be used on merchandise. SECTION 23 Dispensary. A marijuana dispensary license allows the licensee to sell only prepackaged usable marijuana, edible marijuana products and approved ancillary marijuana paraphernalia at retail to state regulating authority designated medical marijuana card holders. A. Edible Products. No marijuana infused products requiring refrigeration or hot-holding or considered potentially hazardous food shall be dispensed, sold or distributed. a. No infused products dispensed, sold or distributed may contain alcohol beverages as defined and regulated by Chapter 6.50. b. All marijuana infused products offered for sale at licensed dispensaries shall be labeled in accordance with section 22. (see Infused Products) c. Any dispensary that sells edible marijuana-infused products must display a placard that states the following: “Edible marijuana-infused products were produced in a kitchen not subject to public health inspections that may also process common food allergens.” The placard shall be no smaller than 24 inches tall by 36 inches wide, with font size letters no small than 2 inches. The placard shall be clearly visible and readable by customers and shall be written in English. d. Baked products infused with medical marijuana (such as brownies, bars, cookies and individually sized breads and pastries), tinctures, and other non-refrigerated items are acceptable for sale and distribution. Such product must not be viewed from or depicted on the tamper resistant and tamper evident packaging and must meet all marijuana infused product labeling requirements. e. A dispensary may not sell or distribute extracts that are not infused in products. A marijuana extract does not meet the definition of a marijuana-infused allowed product. B. Other Products. A dispensary is not allowed to sell any products not required for effective use of the medical marijuana currently within approved inventory. No gifts, novelties and ancillary business activity is allowed within a dispensary. Ancillary paraphernalia which are products required to administer medical marijuana is limited to the consultation room and only to a display area of 10 square feet of gross retail space in the room C. Banking Services. A dispensary may locate one automatic teller machine for access to patients only for the dispensing of money if the person operating the machine has been DRAFT 21 D. approved by the Director under Chapter 6.06.125 and the business is licensed to operate such by the city. Prohibited Activities. The following activities are prohibited: a. Any off-premise video, media, broadcasting or electronic solicitation for promotional advertising; b. The selling of products below their acquisition costs. c. The giving of free samples or free product to any person, employee or customer; d. The opening of any package of retail marijuana or marijuana-infused product; e. A drive-thru or walk-up window for transactions or product transfer; f. A dispensary shall not dispense or distribute, sell, transfer or in any other way provide marijuana other than by direct, face-to face, in-person transaction with patient or caregiver at the licensed facility. Marijuana shall not be provided by any other means of delivery including: i. Internet sales; ii. Transport, mail or private delivery of product; g. Entering a dispensary with hats, sunglasses or face obscuring accessories. Prior to being allowed to enter any secured area of the facility, all customers must remove all face obscuring accessories; h. No employee shall be paid for services in the form of marijuana product; i. No physician or medical person making recommendations for medical marijuana may be located within a dispensary; j. A dispensary is prohibited from referring customers to medical personnel for the express purpose of securing a medical marijuana referral to obtain a state issued medical marijuana card; k. Reward programs, customer loyalty programs, promotional activities, or the offer of free or discounted product to any customer or employee; l. Giveaways, coupons or distribution of branded merchandise. m. No merchandise may be produced or endorsed by any medical marijuana establishment or allow any approved logo or business name to be used on merchandise. n. The display on any product in any manner visible to the general public from the right of way or outside of the facility. o. Off-site delivery of product by licensee is prohibited. All sales and distribution of medical marijuana by a licensed medical marijuana dispensary shall occur only upon the licensed premise, and the licensee shall be strictly prohibited from delivering medical marijuana to any person at any other location. Resale. Dispensaries must inform each customer either by signage, written receipt or on product labeling that it is illegal to re-sell medical marijuana to any person. Supply. Dispensaries are allowed to have a maximum of 3 months of their average inventory on their licensed premises at any given time. Persons allowed onsite. With the exception of security guards, and required inspections, only qualified patients and caregivers shall be allowed inside of the Dispensary. Notifications. The Dispensary shall provide the Director, the Sheriff and all neighbors located within fifty (50) feet of the premises with the name, phone number, and facsimile DRAFT E. F. G. H. 22 I. J. K. L. M. N. number of an on-site community relations staff person to whom one can provide notice if there are operating problems associated with the Dispensary. Signs and Advertising. A dispensary shall comply with the following additional advertising restrictions: 1. Display at the entrance to the facility a sign which includes the words, “Persons under twenty-one years of age not permitted on these premises” 2. No advertising, materials or postings within the waiting areas may advertise locations, devices or activities promoting the consumption of marijuana or other facilities selling or purporting to provide locations for the private or public consumption of marijuana. 3. No marijuana advertising or labels of useable marijuana and edible marijuana infused products sold in the City of Las Vegas may contain any statement, or illustration that: a. Is false or misleading; b. Promotes over consumption; c. Depicts a child or other person; or d. Contains objects, such as toys, characters, or cartoon characters or any other depiction designed to be appealing in color or depiction to children. Electronic Verification. Prior to dispensing any medical marijuana, each Dispensary shall electronically verify the validity of each card authorizing a patient to purchase medical marijuana and the doctor making a cannabis recommendation. This verification will be by checking via the Internet with the state regulating authority. If electronic verification of any card, for any reason is not accessible, the dispensary will deny the transaction. Armored vehicle services. Dispensaries shall obtain the services of a licensed armored vehicle service and arrange for daily pick-ups of all monies. Testing Log. Dispensaries shall maintain and publicly display a written log at the location documenting the date, type, and amount of marijuana tested; the name of the laboratory where the marijuana was tested; the laboratory report containing the results of the testing, including the name and level of the substance detected; and the disposition of the marijuana from which the contaminated sample was obtained, including the amount of marijuana and the date and manner of disposition. Hours. A dispensaries hours of operation shall be limited to between 7:00 am and 8:00 pm. A dispensary shall not close during its hours of operation, either on a temporary basis or ongoing basis. Any temporary or ongoing closures, except for those necessary during an emergency situation, must be pre-approved by the Director. Failure to gain approval from the Director prior to closure shall be grounds for suspension of the License. Co-location. A dispensary cannot be co-located with a cultivation or production facility. DRAFT SECTION 24 Modification of the premises Any modification of the premises of a medical marijuana establishment shall be filed 60 days in advance of any proposed construction. A full and complete copy of all architectural and building plans shall be filed with the Director for a review of compliance with this chapter. The Director shall review the plans and approve any modifications in compliance with this chapter prior to the commencing of any construction of modifications. 23 SECTION 25 Renewal of licenses. A. On or before the one-year anniversary date of any license issued pursuant to this chapter, the licensee shall demonstrate to the satisfaction of the Director that the licensee has applied for and received a one-year renewal of the licensee’s state certification from the state regulating authority and shall pay the annual license fee for the second year of the local license as provided in section 26. Failure of the licensee to renew and keep current the state license or make timely payment of the local licensing fees shall be ground for immediate suspension of the license pursuant to section 37. B. No less than 60 days prior to the expiration of a medical marijuana establishment license, the licensee may apply for renewal of the license. If the application for renewal is not filed within the time specified in this section, the licensee may thereafter file a written application for renewal of the license within 10 days, but in that event, the licensee shall pay a daily penalty fee of $ << >>. If the application is not received by 5 p.m. of the 10th day after the required renewal submittal date, the license shall be deemed surrendered, which will have the same effect as being revoked, and the medical marijuana establishment may not operate unless and until a new license has been obtained; C. An application for renewal must be provided on a form acceptable to the Director and accompanied by: a. All required fees; b. A completed license application filed with an affidavit, executed under penalty of perjury, to the Department the following information. c. An updated detailed financial history and business associations covering at least a ten-year period immediately preceding the year of filing for each principal and any beneficial owner with a five percent interest in a medical marijuana establishment, or affidavit testifying that no changes have occurred in the previous licensing period; d. An updated detailed personal history covering at least a ten-year period immediately preceding the year of filing for each principal and any beneficial owner with a five percent interest in a medical marijuana establishment, or affidavit testifying that no changes have occurred in the previous licensing period; e. One-time, nonrefundable renewal application fee of $ << >>. f. Updated documentation demonstrating the complete ownership structure of the applicant, including, but not limited to, all articles of organization or incorporation, partnership agreements, stock certificates, state business license, taxation documents and current listing of officers, members and/or managers, and any profit sharing agreements made outside of the ownership structure for the ensuing licensing period, or an affidavit testifying that no changes are proposed for the requested licensing period; g. Updated documentation on the residency of each principal, or affidavit testifying that no changes have occurred; h. List of all ownership of any medical marijuana facilities in any other states, or affidavit testifying that no changes have occurred; i. List of all license numbers for all other active business licenses issued to listed owners by the City of Las Vegas or other jurisdiction within the State of Nevada, or affidavit testifying that no changes have occurred; j. A complete and accurate list of all employees, the full, true and correct names and addresses of each and every employee and their state regulating authority registration documentation number and work card registration expiration date; DRAFT 24 D. E. F. G. k. A complete and accurate copy of the application and all accompanying documents to be filed pursuant to NRS 453A.332 with the State regulating authority to renew the certification to operate a medical marijuana establishment ; l. A copy of a commercial general liability insurance policy (bodily injury, property damage, and medical marijuana liability) in a policy limit not less than $2,000,000.00 per occurrence and $5,000,000.00 in aggregate, which specifically includes liability for medical marijuana; m. A request for any changes to the sign plan showing all proposed exterior and interior signage including the size and full color rendering of signage; n. A copy of all current contracts, proposed contracts for consulting, management, renting or leasing; o. A copy of all leases, and contracts with any other proposed medical marijuana establishment; p. A release of claims and a hold harmless agreement to the City for its use of the information provided by the renewal applicant or discovered during any investigation thereof; and q. 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. The Director may renew a license based on a determination that no material changes have been made to the original application or refer the renewal with noted requested changes to the Council for consideration. All changes in ownership or location must be referred to the City Council as a new permit application during a posted request for certification permits. The Director may conduct random criminal history checks of all principals and registered employees at the time of renewal. An applicant shall pay all fees associated with the updating of their background and criminal history investigation within 15 days of notification by the Director. The Director may decline to renew a license per LVMC 6.02.090. The Director shall deny any application for renewal that does not comply with all submittals including fees at the time of submittal. DRAFT SECTION 26 Fees – When Due. A. Each annual fee is due in advance at the time of licensure. Any annual fee which is not received by the Department on or before the due date shall be assessed a late-payment penalty in an amount equal to ten percent (10%) of the amount of such fee. B. If the annual fee is not received by the Department within fifteen (15) days after the due date, an additional penalty in an amount equal to twenty-five (25%) percent of such annual fee shall be assessed. If the annual fee and all penalties are not received by the Department within thirty (30) days after the due date, the license shall be automatically suspended and the business shall be ordered by the Director to cease and desist all operations. C. A license that has been suspended for nonpayment of license fees and penalties may be considered for reinstatement by the Council only within six (6) months from the due date and only if a new permit application period has not been opened by the Council. The Council may consider reinstatement, if the licensee complied with the Director’s order to immediately cease operations, has paid all delinquent license fees and penalties, plus an additional reinstatement fee in an amount equal to one-half of the annual fee for such business. The reinstatement fee is exclusive of the regular annual license fee for that license. The fees and penalties required to be paid pursuant to this Subsection (B) must have been paid not later than ten (10) calendar days following the date of suspension of the license. The license 25 D. E. F. G. shall be deemed automatically revoked without appeal if such fees and penalties are not paid in accordance with this section. Every medical marijuana establishment shall deliver to the Department, via electronic format and written format, a quarterly written report and a statement, under oath, showing the true and correct amount of gross revenue derived from the medical marijuana business in the preceding applicable time period. At the option of the City, the City may require payment of gross revenue fee revenues through electronic transfer and on a more frequent basis. Such statement shall be accompanied by the payment of the correct amount of gross revenue license tax due and owing. A signed certification shall be attached to the statement. Said quarterly reports shall be received by the Director or designee no later than the first of every January, April, July, and October. Said records shall include all transactions up to ten (10) days prior to the required submission date. If the first day of any quarter falls on a non-City business day then the records shall be due the first available City business day. No partial payments shall be received by any officer of the Director upon any license fee, and all officers are hereby prohibited from receiving any sum less than the amount required by the terms of the provisions pertaining to the particular license sought. SECTION 27 Key Employee Required DRAFT A key employee is required per Chapter 6.06 for each medical marijuana establishment. A. A key employee must be available to respond to the facility at all times a medical marijuana facility is in operation. B. A dispensary must have a key employee on site during all hours of operation. C. A medical marijuana edible or infused production facility must have a key employee onsite during all hours the facility is open for producing, receiving or transferring any medical marijuana product. D. A medical marijuana cultivation facility must have a key employee onsite at least eight (8) hours in any twenty-four hour (24) period, at least five ( 5) days per week, and during all hours that product is cloned, planted, harvested, weighed, trimmed, labeled, packaged, or prepared for distribution or transported. E. All key employees must be found suitable by the Director prior to being allowed to act in the capacity of key employee. SECTION 28 Death or incapacity of a medical marijuana licensee An appointed guardian, executor, administrator, receiver, trustee, or assignee must notify the Director in the event of the death, incapacity, receivership, bankruptcy, or assignment for benefit of creditors of any licensee within ten (10) days of such appointment to act. A. The business must cease all sales of medical marijuana products including wholesale cultivation, edible or infused products and dispensary sales until such time as a new certificate has been issued by the state regulating authority and a license has been granted by the City. B. When the matter is resolved by the court, the true party(ies) of interest may apply for a license once certified by the state. C. All marijuana products are subject to disposal, or may be transferred to an approved licensee or maintained under a plan approved by the state regulating authority and the Director. 26 SECTION 29. Plan for closure. Prior to the issuance of a license or the renewal of a license, each applicant must file with the Director a plan for the disposal of all plant material, products and usable medical marijuana for implementation due to closure, revocation or should the certificate issued by the state not be renewed for operation. The plan must include notification to the Director, inspection prior to closure and inspection and tracking of all materials to be disposed or transferred to another establishment licensed as a medical marijuana establishment. The plan must be executable within ten (10) days of such revocation, closure or non-renewal and be approved by the Director. The plan must include that: A. The business must cease all sales of medical marijuana products including wholesale cultivation, edible or infused products and dispensary sales until such time as a new certificate has been issued by the state regulating authority and a license has been granted by the city. B. All marijuana products are subject to disposal, or may be transferred to an approved licensee or maintained under a plan approved by the state regulating authority and the Director. DRAFT SECTION 30 Disposal of medical marijuana. Medical marijuana must be stored, secured and managed in accordance with applicable state statutes and regulations, applicable Health Department regulations and LVMC Chapter 14. A medical marijuana establishment must dispose of medical marijuana that is not usable marijuana within ten (10) calendar days of expiration of use or harvest. Medical marijuana waste must be made unusable prior to leaving a licensed medical marijuana facility. A. Solid and liquid wastes generated during marijuana production and processing must be stored, managed, and disposed of in accordance with applicable state and local laws and regulations. B. Wastewater generated during marijuana production and processing must be disposed of in compliance with LVMC Chapters 14.17 and 14.18, and any other applicable federal, state and local laws and regulations. C. Waste from the production and processing of marijuana plants must be evaluated to determine if those wastes designate as dangerous waste. It is the responsibility of each waste generator to properly evaluate their waste to determine if it designates as a dangerous waste and would be harmful to health or the environment and to dispose of all such waste in accordance with this code, state regulations and regulations of the Health District. Wastes that must be evaluated include, but are not limited to the following: a. Marijuana flowers, trim and solid plan material; b. Waste solvents c. Discarded plant waste, spent solvents and laboratory wastes from any marijuana processing or quality assurance testing. d. Marijuana extract that fails to meet quality testing. e. Wastes that does not designate as dangerous waste must be rendered unusable prior to leaving a licensed cultivator, production, laboratory or dispensary. Disposal 27 D. E. F. of the marijuana waste rendered unusable must follow the methods under subsection E. Wastes that must be rendered unusable prior to disposal include, but are not limited to: a. Dangerous Waste; b. Marijuana plant waste, including roots, stalks, leaves, and stems that have not been processed with solvent; c. Solid marijuana sample plant waste possessed by third-party laboratories certified by the state regulating authority for quality assurance that must be disposed of; The allowable method to render marijuana plant waste unusable is by grinding and incorporating the marijuana plant waste with non-consumable solid waste or other ground materials so the resulting mixture is at least fifty percent non-marijuana waste by volume. Other methods to render marijuana waste unusable must be approved by the Southern Nevada Health District and state regulating agency before implementing. Materials used to grind with marijuana falls into two categories: a. Compostable mixed waste - Marijuana waste to be disposed as compost feedstock or in another organic waste method may be mixed with the following types of waste materials: i. Food waste; ii. Yard waste; iii. Vegetable based grease or oils; iv. Bokashi, or other compost activators; v. Soil; vi. Or other wastes approved by the Southern Nevada Health District and state regulating agency. b. Non-compostable mixed waste - Marijuana waste to be disposed in a landfill or another disposal method may be mixed with the following types of waste materials: i. Paper waste; ii. Cardboard waste; iii. Plastic waste; iv. Soil; or v. Other wastes as approved by the Health District and state regulating agency. Marijuana waste rendered unusable following the methods described above may be delivered to a franchised or licensed solid waste facility for final disposition. Such facilities may include: a. Compostable mixed waste: Compost, anaerobic digester, or other facility holding a valid permit from the Southern Nevada Health District; b. Composted on-site at a facility owned by the generator of the waste and operated in compliance with the regulations pertaining to Southern Nevada Health District; c. Non-compostable mixed waste. Landfill, incinerator, or other facility holding a valid permit from the Southern Nevada Health District. d. Either Compostable or Non-compostable rendered unusable may be managed onsite by the generator in accordance with a plan approved by the Southern Nevada Health District. DRAFT G. 28 H. A record of the final destination of marijuana waste rendered unusable must be kept at the facility for a period of five years. I. Disposal cannot include product entering the City wastewater collection system, storm drain system or any unsecure rubbish disposal system. J. A medical marijuana establishment shall not transfer, share, give, sell or deliver any unused medical marijuana in the establishment’s possession to any other person, regardless of whether they are licensed as a medical marijuana establishment. K. A medical marijuana establishment shall not dispose of medical marijuana in any manner other than permitted under this chapter. SECTION 31 Right of entry by inspectors or investigators A. Inspectors and investigators shall be permitted to have access to the licensed premises at all times, in the course of their duties, concerning the enforcement of the ordinances of the City and rules and regulations promulgated pursuant and thereto. B. Any refusal on the part of any licensee, permittees, or any officer, agent or employee thereof, to submit to or permit such investigation, visitation or inspection, or audit, or any hindrance thereof by any person shall constitute a violation hereof and be grounds for suspension of the license by the Director. DRAFT SECTION 32 Work Cards Required No person shall work in any capacity, either as an employee or an independent contractor who participates in the customary operations in a licensed medical marijuana establishment without a valid work card issued pursuant to LVMC 6.86 by the Las Vegas Metropolitan Police Department. A. The Sheriff shall deny a work card for any relevant cause denoted in subsection D of this section. An applicant for an employee work card shall authorize the Sheriff to obtain any available criminal arrest and conviction record information relating to the applicant and shall further authorize the updating of that information on an annual basis if a work card is issued. B. Every employee granted a work card shall prominently display the work card at all times the employee is at the premises on the employee’s outermost garment at approximately chest height. Such identification card shall be in good and readable condition and a replacement card shall be issued by the Sheriff upon payment of a fee established by Las Vegas Metropolitan Police Department Fiscal Affairs. C. Applications for such work card shall be submitted under oath and contain the past criminal record, if any, of the applicant and such information as may be necessary to determine whether the applicant is a proper person to be employed. A work card shall be issued only to persons 21 years of age or older. Every operator, employee, volunteer, or others who propose to work and/or assist in any way in the operation, including security shall be considered an employee of the Medical Marijuana Establishment. D. The Sheriff shall deny the application for an employee work permit if the Las Vegas Metropolitan Police Department makes any one of the following determinations: a. The applicant has been convicted of any felony; b. The applicant has been convicted of any misdemeanor or gross misdemeanor involving drug-related offenses, dishonesty or moral turpitude within the ten (10) year period immediately preceding the submission of the application; 29 c. The applicant has been convicted of any offense involving the violation of the Nevada Health and Safety Code; d. The applicant has been convicted of any offense involving the use of force or violence upon the person of another; e. The applicant has made one (1) or more false statements in the application; f. The applicant has failed to comply with one (1) or more provisions of this chapter, or of this code, or other laws or regulations applicable to the premises; g. The issuance of the proposed work card would violate an applicable provision of this chapter; or h. The applicant is associated with criminal profiteering activity or organized crime. E. A work card issued for employment in any medical marijuana establishment is valid for one (1) year from the date of issuance. If the holder of an employee work card fails to timely renew said work card, his or her card shall cease to be valid and he or she must make application for a new work card. In addition to any disciplinary action against the business, it shall be a misdemeanor to engage in any type of employment activity with a medical marijuana establishment without a valid work card. F. If an employee violates, permits, allows or causes the violation of any provision of this chapter, the Sheriff shall have the right to revoke or suspend any employee work card issued hereunder and to take possession of such work card. Any of the grounds upon which the Sheriff may be required to refuse to issue an initial work card shall also constitute grounds for such revocation or suspension. Revocation and suspensions shall be conducted in accordance with LVMC 6.86. DRAFT SECTION 33 Registered Agents and Employees. A complete and accurate list of employees, including state regulating authority agent cards and work card identification numbers 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 work shift. A. The complete and accurate list must be filed with business licensing on an annual basis at the time of the due date of annual fees. B. It shall be a condition of the license to inform the City of any change in the employment status of a registered employee within five (5) 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. C. A medical marijuana establishment shall maintain records at the location accurately and truthfully documenting: a. The full name, address and telephone number(s) of the owner, landlord and/or lessee of the location; b. The full name, address, and telephone number(s) of all members who are engaged in the management of the business and the exact nature of each member’s participation in the management of the business; and, c. The full name, address, and telephone number(s) of all contractual relationships to other medical marijuana establishments and other businesses. SECTION 34 Audit required 30 At the end of each licensee’s fiscal year, the licensee shall submit all audits, financial records and reports required by the state regulating authority to the City. If the state regulating authority does not require an independent audit, said audit shall be considered a condition of the license. A. Any required audit shall conclude with the expression of the auditor’s opinion on the financial statements of the licensee’s operations in accordance with generally accepted accounting principles. B. The auditor shall express a separate opinion on the licensee’s gross revenues and related permit fees paid to the City for the period then ended. Also, the licensee shall provide the City with an annual update of the evaluation of its internal accounting and administrative controls. Such audit report shall be filed with the Director no later than ninety (90) days after the licensee’s fiscal year end. In the event that such evaluation discloses material weaknesses or reportable conditions, including, but not limited to, qualified or adverse auditor’s opinions, or discrepancies or deficiencies in the licensee’s system of internal accounting and administrative controls, the licensee shall submit a program to the City Manager within thirty (30) days of such evaluation outlining the licensee’s program and target dates to correct such weaknesses or conditions. The program and target dates shall be subject to approval, modification or denial in the sole discretion of the Director, and, in the event of modification or denial, the licensee shall submit within fourteen (14) days of receipt of the Director’s modification or denial, a revised program and target dates to correct such weaknesses or conditions. Such revised program and target dates shall be subject to approval or modification in the sole discretion of the Director, and in the event of modification, the licensee shall conform with the modified requirements of the program. Failure to correct the weaknesses or conditions within the time periods specified in the approved or modified program, may be grounds for suspension and/or revocation of the license by the Director. All reports or evaluations submitted hereunder shall be confidential and shall not be available for public inspection. C. Any failure or refusal of any such licensee to make any statement as required within the time required, or to pay such sums due as gross revenue license tax when the same are due and payable in accordance with the provisions of this chapter, shall be and constitute full and sufficient grounds for the revocation or suspension of the license issued pursuant to this chapter in the sole discretion of the Director. DRAFT SECTION 35 Access to Records and Facilities. Notwithstanding the audit requirements specified in Subsection A of this section, and in compliance with all State and Federal privacy laws the licensee shall allow the Director or a designee unrestricted access to all books, records, facilities, and all audio and video tapes pertaining to the facilities. Any information obtained pursuant to this section or any statement filed by the licensee shall be deemed confidential in character and shall not be subject to public inspection except in connection with the enforcement of the provisions of this chapter. It shall be the duty of the Director to preserve and keep such statements so that the contents thereof shall not become known except to the persons charged by law with the administration of the provisions of this chapter or pursuant to the order of any court of competent jurisdiction. A. Any failure or refusal of any licensee to make and file any statement within the time required, or to permit inspection of such books, records, accounts and reports of such licensee in accordance with the provisions of this chapter shall be full and sufficient grounds for the revocation or suspension of the license in the sole discretion of the Director. B. A medical marijuana business shall maintain records at the location accurately and truthfully documenting: 31 a. The full name, address, and telephone number(s) of the owner, landlord and/or lessee of the location; b. The full name, address, and telephone number(s) of all members who are engaged in the management of the business and the exact nature of each member’s participation in the management of the business; c. All receipts of the business, 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; d. All receipts for the retail sale, transfer or wholesale sale of any marijuana or marijuana product and the corresponding electronic tracking inventory reference; e. An inventory record documenting the dates, amounts, and content testing results of all marijuana cultivated by business, including the amounts of cannabis stored at the location at any given time; f. 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; g. 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 medical marijuana establishment; C. These records shall be maintained by the business for a period of five (5) years and shall be made available by the business to the Department upon request, except the private patient records shall be made available by the business to the Las Vegas Metropolitan Police Department only pursuant to a properly executed search warrant, or court order. In addition to all other formats that the business may maintain, these records shall be stored by the business at the location in a printed format. D. Any loss, damage or destruction of the records shall be reported to the Las Vegas Metropolitan Police Department within twenty four (24) hours of the loss, destruction or damage. DRAFT SECTION 36 Confidential Information The following information received and records kept by the Department for purposes of administering a medical marijuana establishment license are subject to all applicable federal privacy laws, are confidential, are exempt from the Freedom of Information Act, and are not subject to disclosure to any individual or public or private entity, except as necessary for authorized employees of the Department to perform duties of the Department: A. Permit applications, license applications or renewals, their contents as it relates to financial background of individuals, locations of cultivation facilities, security plans and operation policies; B. Any identifying information of persons who have an issued registry identification card from the State for the use of medical marijuana; C. Surveillance data or recording media that contain images of individuals who may be registry identification card holders from the State for the use of medical marijuana; D. Any dispensing information required by the State regulating authority to be kept confidential including any registries of cardholders or audit reports that could contain any personally identifying information. E. Financial records, reported revenue and license fees paid. 32 SECTION 37 Disciplinary Actions, suspension and revocation of licenses. All licenses and permits authorized and issued under the provisions of this chapter may be subject to immediate suspension by the Director, if the Director finds that: 1. A permitee, licensee or any agent or employee thereof, with knowledge of the permit of license, has violated, or permitted, allowed or caused a violation of any provision of this chapter, any regulation issued pursuant to this chapter, any condition of approval imposed upon the issuance of the permit or license, or any State law or regulation relating to the operation; or 2. Based on ascertainable facts, the operation substantially aggravates the crime problems in the City, makes law enforcement unduly difficult, or is detrimental to the public health, safety or welfare of the City; or 3. Marijuana is purchased from or distributed to an unauthorized source; or 4. A permitee or licensee has failed to pay, when due and payable, any of the fees or taxes required by Section 26 or within ten (10) days after written notice of the failure to pay any required fees; or 5. A permitee or licensee has made any fraudulent statements as to a material fact on an application form or as to any other information presented as part of the application process; or 6. A permitee or licensee knowingly commits any act which would have constituted grounds for denial of an application for a permit; or 7. The permitee or licensee has knowingly continued to employ in any medical marijuana establishment any individual whom any court has found guilty of any of the crimes which would have constituted grounds for denial of an application for a work card for the employee; or 8. The permitee or licensee has been convicted of a crime enumerated in Section15. A conviction is suitable grounds for revocation of a certification permit by the Director; 9. Licensee has failed either to file the required reports or to furnish such information as may be reasonably required by the Director under the authority vested in the Director by the terms of the provisions relating to the specific license; 10. The licensee, either knowingly or without the exercise of due care to prevent the same, has violated any terms of the provisions pertaining to the license or any regulation or order lawfully made under and within the authority of the terms of the provisions relating to the license; 11. Any fact or condition exists which, if it had existed or been known to exist at the time of the application for such license, would have warranted the Director to recommend denial of the license or permit; 12. The licensee has failed to maintain the premises in compliance with the requirements of the building official or the fire chief or any environmental or health department; 13. The licensee or any of the agents, servants or employees of the licensee, have violated any ordinance of the city or any state or federal law on the premises or have permitted such a violation on the premises by any other person. 14. Failure to maintain required open business hours, or closure without notice to the Director. A. For purposes of suspending or revoking any license or permit, the licensee or permitee shall be deemed to have permitted any act or condition if a reasonable licensee or permittee would have been aware of the act or condition and taken action to stop the act or eliminate the condition. DRAFT 33 B. Any act or omission committed by any employee, agent, or independent contractor that occurs in the course of his or her employment, agency, or contract with the licensee shall be imputed to the licensee or permitee for the purposing of imposing any civil penalty, suspension, or revocation on the licensee or permitee. C. In lieu of any license suspension, the director may assess a civil penalty against the licensee not to exceed $ << >> per violation and $ << >> for each subsequent violation. Whether a fine should be assessed in lieu of suspension, and the amount of such fine shall be determined by the Director in his or her discretion, based upon the nature of the offense, the licensee’s record, whether the violation presents a threat to public health, safety or welfare, the duration of the violation, and any other mitigating or aggravating circumstances present. In the event that the Director imposes a civil penalty fine under this section, the Director’s order shall state a deadline for the payment of the fine or appeal to the hearing officer per LVMC 6.02.460. In the event that the fine is not paid by the date specified by the Director or as adjudicated by the hearing officer, the Director may suspend the license until the fine is paid in full. D. The licensee may be required to pay all administrative expenses. E. In the event the Director determines that a permit or license issued pursuant to the terms of this chapter shall be suspended pending appeal before the City Council for revocation or other penalty, the notice shall be in writing and addressed to the licensee or permitee and the building owner at the addresses of record. Notice shall also be sent to the state regulating authority. F. Failure to immediately suspend all business operations of the medical marijuana establishment shall require the Director to post the property as closed by order of the Director, and shall be grounds for revocation of a license. G. A notice to suspend is considered a final action of the department and all business transactions are to cease and desist immediately. The business operation is to be closed to the public with proper signage posted that is approved by the Director. A skeleton staff by the cultivation business is permitted to be onsite during the appeal process to maintain the needs of the plants for a cultivation facility. Once the appeal is complete and in favor of revocation then the disposal process will be followed for a cultivation facility. DRAFT SECTION 38 Appeal of final department decision or enforcement action. A final department decision may be appealed to the City Council. A. Final department decision includes: a. The suspension of a license; b. The denial of an application for renewal of a license; c. Denial of Suitability for any Principal. B. If any final Department action is appealed to the City Council pursuant to this Section, the record on review by the Council shall include the following: a. The application or petition for appeal; 34 b. Any written documentation, original and subsequent applications and accompanying documents considered by the Department in making its final determination with respect to the decision; c. Any written correspondence between the Department and the person submitting the application or petition; d. Any records of enforcement actions, inspections or hearing officers; C. Appeals must be submitted in writing to the City Manager within thirty (30) calendar days from the date the final decision was issued by the Department and shall be scheduled before the City Council within sixty (60) days of receipt of the appeal. The notice of appeal shall state all the grounds of appeal and shall admit or deny the determination in the notice of decision. D. Unless the permitee or licensee files a written notice of appeal with the required time period, the final decision shall be enforced on the 31st day following the decision of the Director and the license or permit shall be deemed revoked. E. In the event that a permit or license is revoked either by action of the Director, City Council or terms of this chapter, each permitee, or principal of the license, that held the revoked license shall not be eligible to apply for or be issued a new license until ten (10) years have passed from the date of revocation. DRAFT SECTION 39 Fees, Origination and Application Charge. [Under Review] SECTION 40 Accounting Procedures Point of Sale System (POS) 1. A computerized POS system must be utilized to record and track all sales. 2. The POS system must be operational prior to the opening of the business. 3. All sales must be transacted through the POS system, except as allowed under the manual procedures outlined below. 4. Surveillance cameras must be directly positioned over the cash register and provide clear view over the: A. Area where the tender type (cash, credit card or checks) is exchanged between the buyer and seller; B. The register or computer keys utilized to enter the sales information; and 5. The area where the manual receipt is documented so as to show the recording of the sale as allowed under LVMC XXX. A two part computerized receipt must be generated from the POS system detailing the following information: A. The date, time, and amount of payment. B. Each item sold must be listed individually, with amount due and a corresponding identifying description or numbers so the type of product sold can be individually identified. C. The name or other identifier of the cashier. D. Separate line items must be maintained for the subtotal, taxes and any additional fees. E. A grand total line of all fees due. F. Sequential numbered receipt. 35 G. Name and address of the business. H. Tender type. I. The unique number as assigned to each patient record used by the state to track medical marijuana patients. 6. The patient’s name must NOT be shown on receipt. 7. One copy of the receipt is given to the patron and the other is kept as back up documentation with the daily cashier paper work. 8. Cash register receipts including voids must be maintained for a minimum of one year. 9. All voided transactions must be documented in the POS system. 10. Voided receipts must contain the following: A. “Void” written on the receipt. a. The reason for the void is documented on the receipt or other document (e.g., a log) sufficiently identifying the receipt. b. Date and time of void on the receipt or other documentation. c. Voids must be approved by a supervisor and evidenced by either the supervisor’s initial on the receipt or POS system controls prevent anyone but the supervisor from performing the void in the computer system. d. If a corrected transaction is completed for the same customer then the new transaction number should be written on the voided receipt. DRAFT Manual Cashiering System- 1. A business may operate for up to one calendar week on a manual cashier system if the computerized system becomes inoperable. 2. The start and end date and time of any periods when a manual system is utilized due to inoperability of the POS system must be logged and maintained for one calendar year. 3. The manual cashiering system must include the following: A. Preprinted, 2-part, sequentially numbered cashier receipts; and B. The same information as required on the computerized POS cashier receipts. 4. The inventory system must be updated within twenty (24) hours of products sold. End of Day/shift cashiering procedures: 1. At the end of each individual’s shift, their cash drawer must be counted out with a second employee. 2. Each tender type must be documented in total and all exceptions, overs and shorts must be documented and maintained for one (1) year. 3. Each cashier must maintain their own cash drawer. Accounting Procedures 1. An individual independent of the cashiering function performs the accounting procedures. 2. Daily perform the following procedures: A. Examine all voided transactions for proper authorization and “void” designation on receipt. B. Examine all cashiering paperwork, receipts, etc. for propriety of transactions. 36 C. Document each individual cashier’s sales totals on a daily sales recap report. D. Document each day’s sales on a monthly sales recap report that indicates: 1. the amount of sales for each day; 2. the tender type (cash, check, credit card, etc..); 3. date of sales. 3. For any Manual Transactions the following daily procedures must be performed: A. A revenue journal must be maintained in either a manual or computerized spreadsheet form to track each day’s individual sales. B. All receipts at the end of the day must be footed and traced to the daily total on the revenue journal. C. Each day’s daily totals must be tracked on a revenue journal for the period the system is down if the computer system is down for more than one day. 4. The following Monthly procedures must be performed: A. Review system exception reports for all computerized POS and inventory systems at least monthly for propriety of transactions and unusual occurrences. All noted improper transactions or unusual occurrences are investigated with the results documented. Note: an exception report is defined as a report produced by the computerized system identifying unusual occurrences, changes to system configuration parameters, alteration to initially recorded data, voids, password changes, etc. B. Add one day’s sales receipts for all cashiers and trace the totals to the daily sales total on the monthly sales recap report. C. Perform a complete inventory count for the products available for sale and trace to computerized inventory records. D. A manual inventory document or computerized record must be used as documentation to show that each item is properly accounted for. E. The manual document or separate document must be signed by the employees performing the inventory, attesting to the date and time the inventory was conducted. F. Inventory count must be completed by a minimum of two (2) employees. DRAFT 5. Document that all accounting procedures have been done. 6. Document all exceptions found. 7. Maintain audit documentation for a minimum of five (5) years unless otherwise stated. Other Procedures 1. Customers may not maintain credit balances, purchase items on credit or be provided any other similar mechanism for holding a credit on a patron’s account. A tender type of credit card is allowed. 37 2. If payment is returned, a listing of all accounts receivables must be maintained, including the name of the patron and current balance. Business will also maintain a copy of the listing with redacted patron names and identifying information. 3. A listing of accounts written off as bad debt will be maintained for a minimum of five (5) years. Business will also maintain a copy of the listing with redacted patron names and identifying information. DRAFT 38
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