City of Las Vegas Business Licensing Proposed Regulations Medical Marijuana DRAFT

Transcription

1 City of Las Vegas Business Licensing Proposed Regulations Medical Marijuana 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: 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

2 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. 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

3 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. 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

4 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 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 4

5 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, per occurrence and $5,000, 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; 5

6 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. 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 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

7 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. D. 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. E. 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. F. 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. G. 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. H. 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. 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

8 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 8

9 minimum shall be $2,000, per occurrence and $5,000, 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. 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

10 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 and 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. 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

11 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. 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

12 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. 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

13 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) A certification permit for such businesses are not required; b) A full and complete license application is required, on a form determined by the Director; c) Applicant shall provide proof of licensing in another jurisdiction to the Director; d) Applicant must meet all criteria for the applicable license; e) Licensee must comply with all provisions of this chapter; f) Licensee shall pay all annual fees; g) 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 13

14 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. E. 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. F. 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. G. 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. H. 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 14

15 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 15

16 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 16

17 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. G. Comply with all regulations of the state regulating authority. H. 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. I. 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. J. 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. K. 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. L. A cultivation facility shall comply with all state and federal rules and regulations regarding the use of pesticides. M. 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. N. 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. O. 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. P. 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. Q. A cultivation facility may have only one-third of the total square footage of the building dedicated to growing any plants. R. A physical barrier must be in place to restrict access to the premises including a wall and controlled access gate for vehicular traffic. S. 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. 17

18 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. 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

19 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 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 19

20 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, 20