Codified sections of Ordinance 1033, passed Oct.

18, 2011, and incorporated into the South Lake Tahoe Municipal Code. Article X. Medical Marijuana Cultivation and Medical Marijuana Dispensaries

32-68 Purpose.
It is the purpose and intent of this article to require that medical marijuana be cultivated in appropriately secured, enclosed, and ventilated structures, so as not to be visible to the public domain, to provide for the health, safety and welfare of the public, to prevent odor created by marijuana plants from impacting adjacent properties, and ensure that marijuana grown for medical purposes remains secured and does not find its way to nonpatients or illicit markets. It is further the purpose and intent of this article to regulate medical marijuana dispensaries and their cultivation operations consistent with Senate Bill 420, known as the Medical Marijuana Program, codified at Health and Safety Code Section 11362.7 et seq. Medical marijuana dispensaries shall comply with all provisions of the South Lake Tahoe City Code, state law, and all other applicable local codes and regulations. It is neither the intent nor the effect of this article to condone or legitimize the illegal use or consumption of marijuana under federal, state, or local law. This article is in compliance with California Health and Safety Code Section 11362 and does not interfere with a patients right to medical marijuana, nor does it criminalize the possession or cultivation of medical marijuana by specifically defined classifications of persons, pursuant to Proposition 215 and Senate Bill 420. (Ord. 1028 1 (Exh. A); Ord. 1032 1 (Exh. A))

32-69 Definitions.
For purposes of this article, the following words shall have the following meanings: Abatement means the removal of marijuana plants and improvements that support marijuana cultivation. Building inspector/building official means the city building official or his/her designee. City means the city of South Lake Tahoe. City code means the code of the city of South Lake Tahoe, and as it may be amended. City manager means the city manager or his/her designee. Cultivation means the planting, growing, harvesting, drying, trimming, clipping or processing of any kind or size of marijuana plants, or any part thereof. Dispensary shall have the same definition as medical marijuana dispensary, as set forth in this section. Dispensary area means the dispensary property and the area within 100 feet of the dispensary property. Dispensary building means the building, structure, or facility that is owned or leased by a dispensary and within which a dispensary is operated. Dispensary building includes the area in which the dispensary keeps, holds, grows, or sells clones or mothers (otherwise known as immature nursery stock marijuana plants or nonflowering marijuana plants).

Dispensary owner/dispensary operator means the dispensary permittee who is issued a city permit pursuant to this article and whose personal name is listed on the permit application as the dispensary owner and operator. Dispensary permit means a city of South Lake Tahoe medical marijuana dispensary permit issued pursuant to this article. Dispensary property means the parcel or parcels of real property upon which a dispensary is located. Dwelling unit means a room or group of rooms (including sleeping, eating, cooking, sanitation facilities, but not more than one kitchen), which constitutes an independent housekeeping unit or living area occupied by one household for a period of time in excess of 30 days. Dwelling unit does not include attached or detached structures such as garages, sheds, greenhouses, and other structures on the same legal parcel(s) as the independent housekeeping unit. Dwelling unit does not include any basements or attics in the dwelling unit. Enforcement officer means the city manager, development services director, fire marshal, building official, or police chief of South Lake Tahoe, or any of their designees. Fire marshal means the city fire marshal or his/her designee. Fully enclosed and secure structure means a space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, and which is accessible only through one or more locking doors. Indoor means that area within a fully enclosed and secure structure. Juvenile means any natural person who is under the age of 18 years. Management member means the person or persons who are the owners, managers, or principals of a dispensary or industrial cultivation facility. Medical marijuana/medicinal marijuana (also known as medical cannabis) means marijuana, including constituents of marijuana or cannabis, tetrahydrocannabinol (THC) and other cannabinoids, used as a physician-recommended form of medicine in accordance with the Compassionate Use Act (California Health and Safety Code Section 11362.5) and the Medical Marijuana Program Act (California Health and Safety Code Section 11362.7 et seq.). Medical marijuana cooperative or collective shall have the same definition as medical marijuana dispensary, as set forth in this section. Medical marijuana cultivation area means that area and space within and in compliance with the maximum dimensions permissible for the cultivation of medical marijuana. Medical marijuana dispensary means a cooperative or collective of four or more members who associate at a particular location or real property to collectively or cooperatively distribute marijuana to members for medical purposes, and operate on a not-for-profit basis, consistent with California Health and Safety Code Section 11362.5, Article 2.5 of Chapter 6 of Division 10 of the Health and Safety Code (Health and Safety Code Section 11362.7 et seq.), the guidelines for the Security and NonDiversion of Marijuana Grown for Medical Use issued by the California Attorney General in August 2008, and this article. Outdoor/outside means any location within the city of South Lake Tahoe that is not within a fully enclosed and secure structure. Permittee means any person issued a city permit pursuant to this article.

Primary caregiver shall have the same definition as set forth in California Health and Safety Code Section 11362.7, as it may be amended and as interpreted by the California courts, including but not limited to the California Supreme Court case of People v. Mentch (2008) 45 Cal. 4th 274. Qualified patient shall have the same definition as set forth in California Health and Safety Code Section 11362.7, as it may be amended and as interpreted by the California courts. Residence means a legal dwelling unit and all detached structures such as garages, sheds, greenhouses, and other structures on the same legal parcel(s) as the independent dwelling unit. Residential cultivation permit means a permit issued by the city of South Lake Tahoe pursuant to this article for cultivation in a residence. (Ord. 1028 1 (Exh. A); Ord. 1032 1 (Exh. A))

32-70 Cultivation of medical marijuana in a residence.

A. Restricted to Qualified Patients and Primary Caregivers. A qualified patient or primary caregiver shall only be allowed to cultivate medical marijuana for their personal use, and for the use of qualified patients, if such cultivation occurs in a residence as defined in this article. B. Only Permitted Pursuant to a Valid City Residential Cultivation Permit. Cultivation in a residence shall be deemed unlawful except pursuant to a valid residential cultivation permit. Issuance of a residential cultivation permit shall be subject to evaluation by the city building official. Residential cultivation permits require verification that the person(s) cultivating are qualified patients or primary caregivers. Residential cultivation permits shall require an annual inspection by the building official and fire marshal. Permits shall expire and become void two years following the date on which said permit was issued, unless said permit is renewed prior to the expiration date. C. No Vested Rights. No person(s) shall have any vested rights to any permit, right or interest under this article, regardless of whether such person(s) cultivated marijuana prior to adoption of the ordinance codified in this article. D. No Transferring of Rights. No residential cultivation permittee shall have any right to transfer or transfer interest in any permit which they are issued pursuant to this article. Permits issued pursuant to this article will become void if transferred, used, or relied upon by any person other than the person to whom the permit was issued. E. Outdoor Cultivation. It is hereby declared to be unlawful, and a public nuisance per se, for any person owning, leasing, occupying, or having charge or possession of any property within the city to cause or allow such property to be used for the outdoor cultivation of marijuana. Cultivation is limited to those areas within a fully enclosed and secure structure. F. Authorization of Property Owner. If the residence where cultivation occurs is leased or rented, residential cultivation permits shall only be issued upon a written notarized authorization by the residence property owner which shall be submitted with said permit application. The property owner may require additional security as he/she deems appropriate. The property owner may revoke said authorization by providing a 60-day notice of revocation of authorization, in writing, to the city and the residential cultivation permittee to whom property owner has provided authorization. Sixty days after receipt of said notification, the residential cultivation permit which has been issued pursuant to said property owners authorization shall be considered null and void. G. Authorization of Tenants. If the residence where cultivation occurs is a building, residence or property shared with other tenants, residential cultivation permits shall only be issued upon written authorization provided to city of adjacent tenants in the building, residence or property.

H. Public Nuisances. Cultivation shall not create a public nuisance and adversely affect the health or safety of persons residing in or near the residence where the cultivation occurs. A public nuisance may be deemed to exist, if cultivation produces: 1. Odors which are disturbing to people of normal sensitivity residing or present on adjacent or nearby properties or areas open to the public; 2. More than three substantiated responses to valid confirmed complaints in a one-year time period to the residence or medical marijuana cultivation facility from law enforcement officers; 3. More than three disruptions in a one-year time period to the free passage of persons or vehicles in the neighborhood; 4. Excessive noise which is disturbing to people of normal sensitivity on adjacent or nearby properties or areas open to the public in accordance with SLTCC 18-10.2; 5. Adverse effects to health or safety through creation of mold, mildew, dust, glare, heat, noise, noxious gases, odor, smoke, traffic, parking, vibration, or other impacts, or be hazardous because of the use or storage of materials, processes, products or wastes. I. Environment. Runoff and waste disposal by the residence where cultivation occurs must be in compliance with any applicable city, county, regional, state, and federal laws and regulations. A violation of any applicable city, county, regional, state, or federal law will be deemed a violation of this article and of the permit, and shall render the permit void and revocable by the city. J. Application for Residential Cultivation Permit. 1. The permit shall be filed with the city manager. The application for a permit shall include, but not be limited to, the following: a. Application and biannual inspection fees set by resolution of the city council; and b. Adequate information and comments, such as a physicians recommendation, or verification that a qualified patient or primary caregiver resides in the residence. 2. Prior to the issuance of the permit, the building official and the fire marshal shall conduct an inspection of the cultivation area to confirm that no health or safety concerns are present, and that the cultivation area complies with the standards set forth in this article. 3. The building official and the fire marshal may require additional specific standards to meet the standards set forth in the California Building Code or other applicable law. The property owner shall obtain building permits and any other permits necessary to comply with the applicable California Building Code or other applicable law. 4. The city council finds that the public interest served by not disclosing the name and address location of the applicant for a permit clearly outweighs the public interest served by disclosure of the record pursuant to the California Public Record Act. The council makes this determination based on the security and crime risk to the applicant if the name and address are disclosed under the Public Records Act. K. Renewal of Residential Cultivation Permit. No later than 30 days before expiration of a valid permit for cultivation of medical marijuana, the permittee shall submit to the city an application for renewal of his/her permit to cultivate medical marijuana. The application shall be on a city form and be accompanied by an application fee as set forth by resolution of the city council. An inspection of the premises by the building official or fire marshal shall be required as part of the process for renewal of a permit.

L. Cultivation of medical marijuana in residences shall be in conformance with the following requirements: 1. Cultivation of medical marijuana in a residence is limited to a medical marijuana cultivation area that does not cumulatively exceed 10 percent of the square footage of the living space of a dwelling unit, or 200 square feet, whichever is lesser. Cultivation may occur in attached or detached structures such as garages, sheds, greenhouses, and other structures on the same legal parcel(s) as the independent housekeeping unit, as long as such structures are fully enclosed and secure structures, and comply with the South Lake Tahoe City Code and all other applicable regulations and laws. The 10 percent limitation on cultivating marijuana shall be based only on the square footage of the living area of the dwelling unit and will not consider any square footage of detached or attached structures, attics or basements. 2. The qualified patient or primary caregiver shall have his/her primary residence be in the residence where the cultivation occurs. 3. Cultivation shall only occur in residences which are in full compliance with this code, including the building code and fire code. 4. Prior to the cultivation in any residence, the qualified patient or primary caregiver shall have the cultivation area inspected by the building inspector and obtain or show proof of the necessary permits under the building code or fire code. 5. Cultivation shall remain at all times a secondary or accessory use to the residential use of the residence. 6. More than one residential cultivation permittee(s) may reside and cultivate in a single residence, however the number of permittees residing in a residence shall not affect the requirements set forth in subsection (L)(1) of this section or any other provision of this article. 7. No cooking, baking, or alteration as to form and substance of medical marijuana for commercial purposes, and/or sale, is permitted in a residence which cultivates medical marijuana. 8. From a public right-of-way, there shall be no exterior evidence of medical marijuana cultivation occurring at the residence. M. Fees and Taxes. The costs to the city arising from the processing and oversight of residential cultivation permits issued pursuant to this article will be offset through application fees and annual renewal fees, to be adopted by the city council by resolution and updated as necessary from time to time. In the administration of the permitting requirements under this article, the city manager may require, as a condition to granting and renewal of the permits, any information reasonably necessary to implement the intent of this article, to ensure that the marijuana handled under the permit is grown, processed or distributed in a manner not in conflict with this article, and to ensure that any and all related sales taxes are being properly reported and paid. N. Implementation of This Section. The city shall adopt procedures to require all cultivation of medical marijuana in a residence to be in compliance with this article no later than December 19, 2011. All cultivation occurring which is not in compliance with this article on or after December 20, 2011, shall cease operation immediately, unless the city council adopts an ordinance to extend these provisions. (Ord. 1028 1 (Exh. A); Ord. 1032 1 (Exh. A). Formerly 32-71)

32-71 Medical marijuana dispensaries.

A. Medical Marijuana Dispensary Permit Required to Operate. No person, group, or entity shall operate a medical marijuana dispensary unless the dispensary has a valid dispensary permit issued pursuant to this article. Neither the obtaining of a dispensary permit nor compliance with the terms, provisions, and standards set forth in this article shall excuse any violation of this code or state law. B. Licensed Medical Marijuana Dispensaries. 1. For purposes of this section, a licensed medical marijuana dispensary means a dispensary: (1) that was deemed an established operation and issued a business and professions tax certificate to operate a medical marijuana dispensary pursuant to City Ordinance 1007 adopted on November 17, 2009; (2) that is organized and operates as a dispensary within the meaning of this article; (3) the owner and operator of which has not been cited or convicted of maintaining a public nuisance or of a public safety violation of state or local law relating to the operation of a medical marijuana dispensary by the city or any governmental law enforcement agency; and (4) the owner and operator of which has complied with all terms, requirements, and regulations as set forth in City Ordinance 1007. 2. An application for a dispensary permit may only be filed by a licensed medical marijuana dispensary. 3. The applicant for the dispensary permit must be the same owner named on the licensed medical marijuana dispensarys business and professions tax certificate as of the date when such business and professions tax certificate was first issued, and must be a management member of the licensed medical marijuana dispensary. C. No Vested Rights. No person(s) shall have any vested rights to any permit, right or interest under this article, regardless of whether such person(s) cultivated marijuana prior to adoption of the ordinance codified in this article. (Ord. 1032 1 (Exh. A))

32-72 Phase one applications for medical marijuana dispensary permit.

A. Phase one applications for dispensary permits shall be filed with the city managers office no later than 30 days after the effective date of the ordinance codified in this article. Applications shall be typed on standard eight-and-one-half-inch by 11-inch paper, using 12 point font, all pages shall be submitted in a single folder, the application shall contain all information set forth in this section, and all such information shall be divided into separate paragraphs with the same heading titles as those set forth in this section. The application shall be accompanied by a nonrefundable phase one dispensary permit application fee, in the amount established by resolution of the city council. The phase one dispensary permit application fee shall be in addition to any other fee or tax imposed by this code. B. Applications received more than 30 days after the effective date of the ordinance codified in this article shall be rejected. C. Content of Phase One Application. The phase one application shall be signed by one or more management members of the dispensary under penalty of perjury and shall set forth in writing: 1. Identity of the Dispensary. A description of the statutory entity or business form that will serve as the legal structure for the collective or cooperative and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement.

2. Management Information. a. The name, address, telephone number, title, and function(s) of each management member of the dispensary. b. For each management member, a legible copy of one valid government-issued form of photo identification, such as a state drivers license, a passport issued by the United States, or a permanent resident card. 3. Applicants Phone Number and Mailing Address. The phone number and address to which notice of action on the application and future correspondence are to be mailed. 4. Verification of Age. Evidence that the applicant and all management members of the dispensary are at least 18 years of age. 5. Criminal Background. a. A list of each misdemeanor and/or felony conviction within the past 10 years, if any, of the applicant and the management member(s), whether such conviction was by verdict, plea of guilty, or plea of nolo contendere within 10 years prior to date of submission of the phase one application. The list shall, for each conviction, set forth the date of arrest, the offense charged, and the offense of which the applicant or management member was convicted. b. The applicant and each management member shall consent to fingerprinting and a criminal background investigation. 6. Employee Information. Approximate number of employees, volunteers, and other persons who will work or provide services at the dispensary. 7. Plans. A plan describing how the dispensary will operate consistent with state law and the provisions of this article, including controls to: a. Ensure that medical marijuana is not purchased or sold by the dispensary in a manner that would generate a profit, as more fully set forth in SLTCC 32-74(G). b. Ensure that medical marijuana will be distributed to members only. c. Ensure that access to the dispensary property is adequately monitored and restricted to members. 8. Dispensary Description. A description of the proposed location of the dispensary, including the street address and parcel number, the square footage, the number of expected members, and the characteristics of the neighborhood or surrounding area. 9. Compliance with Applicable State and Local Taxes. The applicant shall provide a current copy of its business operations tax certificate and state sales tax sellers permit. 10. City Authorization. Authorization and consent for the city manager to seek verification of the information contained within the application. 11. Statement of Owners Consent. Consent to operate a dispensary at the proposed location, specifying the street address and parcel number, from the owner or landlord of the proposed location. D. Review of Phase One Applications. 1. Upon receiving a phase one application for a dispensary permit, the city manager shall determine whether the application is complete. If the city manager determines that the application is incomplete or has been completed improperly, the city manager shall notify the applicant within 30 calendar days from receipt of applicants phase one application, and may grant the applicant an extension of up to 30 days to complete the phase one application.

2. If the application is incomplete, or remains incomplete upon the expiration of any extension, the city manager may deny the application, and shall provide applicant written notice of such denial. 3. In the event of denial, the applicant shall cease operating the dispensary within 30 days from the date notice of denial is served on the applicant. Continued operations shall be unlawful and subject to the penalties of this article as well as any other local, state, or federal penalties. 4. If the city manager determines that the phase one application is complete and there appears to be no basis for denial of the permit pursuant to SLTCC 32-77, the city manager shall notify the applicant within 30 calendar days from receipt of applicants phase one application that the applicant may continue to phase two in the application process pursuant to SLTCC 32-73. (Ord. 1032 1 (Exh. A))

32-73 Phase two applications for medical marijuana dispensary permit.

A. If the city manager notifies the applicant that it may continue to phase two in the dispensary application process, the applicant shall, no later than 45 days following the date upon which the city manager notifies applicant that it may continue to phase two, file a phase two application with the city managers office containing the following: 1. A nonrefundable phase two dispensary permit application fee in the amount established by resolution of the city council. The phase two dispensary permit application fee shall be in addition to any other fee or tax imposed by this code. 2. Security Plan. A detailed security plan, prepared by a qualified professional, outlining the measures that will be taken to ensure the safety of persons and to protect the dispensary property from theft. 3. Floor Plan. A scaled floor plan for each level of the entire building showing the interior configuration of the dispensary building, including a statement of the total floor area occupied by the dispensary. The floor plan must include any entrances, exits, restrooms, waiting areas, office space, storage, and areas for distributing marijuana to members. The floor plan must be professionally prepared by a licensed design professional or architect. 4. Site Plan. A scaled site plan of the parcel of real property on which the dispensary building is located, including the outline of all structures, driveways, parking and landscape areas, and boundaries of the parcel. The site plan must be professionally prepared by a licensed design professional or architect. 5. Accessibility Evaluation. A written evaluation of accessibility by the physically disabled to and within the building and identification of any planned accessibility improvements to comply with all state and federal disability access laws, including, but not limited to, Title 24 of the California Code of Regulations and the Americans with Disabilities Act. 6. Neighborhood Context Map. An accurate straight-line drawing depicting the boundaries of the dispensary property and the boundaries of all other properties within 600 feet of the dispensary property. 7. Electrical and Lighting Plan. A plan prepared by a licensed electrical engineer pursuant to SLTCC 8-16, showing electrical layout, fans, pumps, duct size of air intake and exhaust, location of intakes and termination of exhausts, any other electrical loads including conductors, subpanels, and all existing and proposed exterior and interior lighting levels including those used for all clones and nonflowering marijuana plants. 8. Plumbing Plan. A plan showing the layout of water supply, drains and irrigation piping.

9. Information relating to the use of any carbon monoxide producing equipment and equipment specifications if such equipment shall be used by the dispensary. 10. A copy of the dispensarys commercial general liability insurance policy, workers compensation policy, property insurance policy, and fire insurance policy. 11. A copy of the dispensarys annual budget for operations. 12. A copy of the dispensarys most recent years financial statement and tax return. 13. Applicants Certification. A statement dated and signed by each management member of the dispensary, under penalty of perjury, that the management member has personal knowledge of the information contained in the phase one and phase two applications, that the information contained therein is true and correct, and that the applications have been completed under their supervision. B. Review of Phase Two Applications. 1. Upon receiving a phase two application, the city manager shall determine whether the application is complete. If the city manager determines that the application is incomplete or has been completed improperly, the city manager shall notify the applicant and may grant the applicant an extension of up to 30 days to complete the phase two application. 2. If the phase two application is incomplete, or remains incomplete upon the expiration of any extension, the city manager may deny the application and shall provide applicant written notice of such denial. 3. In the event of denial, the applicant shall cease operating the dispensary within 30 days from the date notice of denial is served on the applicant. Continued operations shall be unlawful and subject to all applicable penalties. 4. If the city manager determines that the application is complete, the city manager shall notify the applicant that the city manager has determined that the content in the submitted documents is responsive to the requirements, and has deemed the application complete. C. Issuance of a Dispensary Permit. 1. The city manager shall either grant or deny a dispensary permit within 30 days from the date the phase two application is deemed complete. 2. Indemnification. Dispensary permits shall contain a condition requiring the dispensary, through its management members, to execute an agreement in a form approved by the city attorney whereby the dispensary (1) releases the city, and its agents, officers, elected officials, and employees from any injuries, damages, or liabilities of any kind that result from any arrest or prosecution of the dispensary or its management members, employees, or members for violation of state or federal laws, and (2) defends, indemnifies and holds harmless the city and its agents, officers, elected officials, and employees for any claims, damages, or injuries brought by adjacent or nearby property owners or other third parties due to the operations at the dispensary, and for any claims brought by any of their clients for problems, injuries, damages, or liabilities of any kind that may arise out of the distribution of medical marijuana provided at the dispensary. D. Renewal of a Dispensary Permit. 1. Unless revoked on an earlier date, all dispensary permits shall expire two years after the date of issuance. 2. A dispensary permit may be renewed for additional periods of two years by filing an application for renewal with the city managers office. Applications shall be on forms provided by the city and shall be

accompanied by a dispensary permit renewal fee, in an amount established by resolution of the city council. The application for renewal and the fee shall be filed at least 30 days, but not more than 60 days, prior to the expiration of the permit. If a timely renewal application is filed, the dispensary permits expiration shall be stayed until the date that notification is provided by the city manager pursuant to subsection (D)(4) of this section. 3. Applications for renewal filed less than 30 days prior to the expiration of the dispensary permit shall not stay the expiration date of the permit and may be rejected or denied. 4. The city manager shall either approve or deny the renewal of a dispensary permit within 45 days from the date the application for renewal is filed. 5. Applications for renewal shall be acted on using the criteria for review in SLTCC 32-77. The city manager may add, remove, or modify permit conditions as a condition of permit renewal. 6. If the city manager denies the application for renewal of a dispensary permit, written notice of denial shall be served on the applicant. 7. The denial of a renewal shall cause the dispensary permit to expire and the dispensary shall cease operations within 30 days from the date notice of denial is served. Continued operations shall be unlawful and subject to all applicable penalties. E. Transfer of Dispensary Permits. 1. Permit Site-Specific. A permittee shall not operate a dispensary under the authority of a dispensary permit at any place other than the address of the dispensary stated in the application for the permit without obtaining city council authorization as set forth in SLTCC 32-75. 2. Transfer of Dispensary Permits. A dispensary permittee shall not transfer ownership or management control of the dispensary or transfer a dispensary permit to another person or entity. If a dispensary permit is revoked, voided, nullified, or otherwise removed, city council may, at a public hearing, determine that it chooses to allow additional applicants to apply, in accordance with the provisions set forth in this section, SLTCC 32-74 and 32-77, for the vacant permit. Should city council elect to allow additional applicants to apply for said permit, city council shall direct the city attorney to amend this article to reflect such a decision. Under no circumstances shall more than three dispensary permits exist or be issued pursuant to this article. 3. Request for Transfer with a Revocation Pending. No permit may be transferred when the city manager has notified the permittee that the permit has been, or may be, suspended or revoked. 4. Transfer Without Permission. A dispensary permit is not property and shall have no value. Any attempt to transfer a dispensary permit, directly or indirectly, in violation of the provisions of this article shall be unlawful and shall result in automatic revocation of the permit. 5. A dispensary permit shall become null and void if the dispensary ceases operations for a period of 10 days or more. (Ord. 1032 1 (Exh. A))

32-74 Dispensary operating requirements.

Dispensary operations shall comply with the following: A. Criminal History. No person who has been convicted of a felony within the last 10 years, or who is currently on parole or probation for the sale or distribution of a controlled substance, shall operate the dispensary, or manage or handle the receipts, expenses, or medical marijuana of the dispensary. A

conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. B. Juveniles. 1. No juvenile shall operate a dispensary in any capacity, including, but not limited to, as a management member, employee, contractor or volunteer. 2. No juvenile shall be allowed on the dispensary property unless they are a qualified patient or a primary caregiver, and they are accompanied by their parent or legal guardian. C. Operating Hours. The maximum hours of operation shall be daily from 7:00 a.m. to 9:00 p.m. D. Dispensary Size and Access. 1. The dispensary building shall not exceed 5,800 square feet. 2. Management, members, employees, and volunteers must be registered members of the dispensary. 3. All entrances into the dispensarys building shall at all times be controlled by dispensary employees or personnel. 4. Only dispensary members and persons with bona fide purposes for being in the dispensary shall be allowed entry into the dispensary property. Nonmembers shall be escorted by a management member at all times while in the dispensary building. E. Dispensing Operations. 1. A dispensary shall only distribute to members. All members must be: a. Qualified patients in compliance with the criteria set forth in California Health and Safety Code Section 11362.5 et seq.; or b. Primary caregivers with a verified primary caregiver designation by their qualified patients, and a copy or copies of their qualified patients valid physicians recommendation in compliance with the criteria in California Health and Safety Code Section 11362.5 et seq. 2. A dispensary shall not have a physician in the dispensary building to evaluate patients or provide a recommendation for medical marijuana. 3. A dispensary shall not conduct or engage in the commercial sale of products, goods, or services, with the exception of (1) medical marijuana, (2) edible marijuana as set forth in subsection (H) of this section, and (3) drug paraphernalia as set forth in California Health and Safety Code Sections 11364.5 and 22364.7, which is necessary for administering medical marijuana, including, but not limited to, rolling papers and related materials and devices, pipes, water pipes, and vaporizers. Such paraphernalia may only be provided to members and shall not generate a profit. 4. A dispensary shall not provide any form of a delivery service. All distribution of medical marijuana must be conducted within the enclosed building areas of the dispensary property. 5. A dispensary shall comply with the operating criteria for the distribution of medical marijuana as required pursuant to California Health and Safety Code Sections 11362.5 and 11362.7 et seq. 6. Dispensary operations shall not result in the diversion of marijuana for nonmedical purposes in any manner that violates local or state law. F. Dispensaries and dispensary permittees shall not acquire, buy, or be provided marijuana by any person, entity, or group who is not in compliance with this article.

G. Not-for-Profit Basis. 1. A dispensary shall operate on a not-for-profit basis as set forth in California Health and Safety Code Section 11362.765 and in the Attorney General Guidelines on Non-Diversion of Marijuana Grown for Medical Use issued in August 2008. 2. A dispensary shall receive only compensation for the reasonable costs of operating the dispensary, including reasonable compensation incurred for services provided to qualified patients or primary caregivers. Sale of medical marijuana to cover anything other than reasonable compensation and reasonable out-of-pocket expenses is explicitly prohibited. Any monetary reimbursement that members provide to the dispensary shall not exceed the dispensarys overhead costs and expenses for operating the dispensary, including reasonable compensation for services provided to members. 3. Upon request by the city manager, based on reasonable suspicion of noncompliance with this section, the dispensary shall provide the city manager copies of, or access to, such financial records as the city manager determines are necessary to show compliance with this subsection. Reasonable suspicion is defined as possession of specific facts warranting a reasonable belief that the dispensary is not complying with the requirement that it be not-for-profit. Financial records are records of revenues and expenses of the organization, including but not limited to payroll records, business expense records, tax returns, etc. H. Edible Marijuana Products. Dispensaries that prepare, dispense or sell edible medical marijuana products, or food containing any form of medical marijuana, must comply with and are subject to the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food. Failure to obtain and comply with all necessary permits related to the preparation, distribution, and sale of food will be an express violation of this article. I. Consumption Restrictions. Marijuana shall not be smoked, ingested or otherwise consumed in any form on any part of the dispensary property except the interior of the dispensary building. J. Operating Plans. 1. Entrance. The dispensarys main entrance shall be located and maintained clear of barriers, landscaping, and similar obstructions so that it is clearly visible from public streets or sidewalks. 2. Storage. A dispensary shall have adequate locked storage on the dispensary property, identified and approved as a part of the security plan, for after-hours storage of medical marijuana. Medical marijuana shall be stored at the dispensary property in secured rooms that are completely enclosed or in a safe that is bolted to the floor. 3. Odor Control. A dispensary shall have an air treatment system that prevents odors generated from the storage of marijuana on the dispensary property. 4. Security Plans. A dispensary shall comply with the security plan submitted as part of its phase two application and that has been approved by the city manager. Such security plan shall include, but is not limited to, compliance with building security specifications, lighting, alarms, electrical specifications, and adequate security personnel to preserve the safety of persons and to protect the dispensary from theft. 5. Security Cameras. Security surveillance cameras and a video recording system shall be installed to monitor the interior, main entrance, and exterior dispensary building to discourage loitering, crime, and illegal or nuisance activities. The camera and recording system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present in the dispensary area. 6. Security Video Retention. Video from the security surveillance cameras shall be maintained for a

period of not less than 14 days and shall be made available to the city upon lawful request. 7. Alarm System. Professionally and centrally monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition. 8. Concealed. A dispensary shall not allow or permit medical marijuana to be visible from the building exterior. 9. Emergency Contact. Dispensaries shall provide the city manager and all neighboring properties, businesses, and/or residences within 300 feet of the dispensary building with the current name and primary and secondary telephone numbers of at least one 24-hour on-call management member to address and resolve complaints and to respond to operating problems or concerns associated with the dispensary. The dispensary shall make good faith efforts to encourage neighborhood residents to call this person to solve operating problems, if any, before any calls or complaints are made to the city. K. Signage. 1. The following signs in measurements of not less than eight by 10 inches shall be clearly and legibly posted in a conspicuous location inside the dispensary where they will be visible to members in the normal course of a transaction, stating: a. Smoking, ingesting or consuming marijuana on the exterior of the dispensary property is prohibited. b. Juveniles are prohibited from entering this property unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or legal guardian. c. Neither the City of South Lake Tahoe nor any other governmental agency has tested or inspected any marijuana product for pesticides, or other regulated contaminants, distributed at this location. d. The sale of marijuana and the diversion of marijuana for nonmedical purposes are violations of state law. 2. Signs on the dispensary building shall not obstruct the entrance or windows of the dispensary. L. Maintenance of Records. 1. A dispensary shall maintain the following records: a. The name, address, and telephone number(s) of each member and management member of the dispensary and the status of each member and management member as a qualified patient or primary caregiver. b. The name, address, and telephone number(s) of each member and management member who participates in the cultivation of medical marijuana for the benefit of the dispensary. c. A copy of each members and qualified patients written physician recommendation and the designation of a primary caregiver by a qualified patient. d. A written accounting of: (1) each transaction of the dispensary including but not limited to the receipt of and sale, donation or trade of each marijuana transaction, (2) all cash and in-kind contributions, reimbursements, and reasonable compensation provided by the management members and members to the dispensary, and (3) all expenditures and costs incurred by the dispensary. e. A copy of the dispensarys commercial general liability insurance policy and all other insurance policies related to the operation of the dispensary. f. A copy of the dispensarys most recent years financial statement and tax return.

g. An inventory record documenting the dates and amounts of medical marijuana received at the dispensary, the daily amounts of medical marijuana stored on the dispensary property, and the daily amounts distributed to members. h. Proof of a valid and current dispensary permit issued by the city in accordance with this article. Every dispensary shall display at all times during business hours the dispensary permit issued pursuant to the provisions of this article in a conspicuous place so that it may be readily seen by all persons entering the dispensary. 2. These records shall be produced to the city, in printed format, within 24 hours after receipt of the citys request. A dispensary shall maintain these records in a location which shall enable it to produce such records within 24 hours. 3. Any loss, damage or destruction of these records shall be reported to the city manager within 48 hours of the loss, damage or destruction. M. Site Management. The dispensary shall prevent and eliminate conditions in the dispensary area that constitute a nuisance. N. Alcoholic Beverages. No dispensary or management member shall cause or permit the sale, distribution, or consumption of alcoholic beverages on the dispensary property; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages on the dispensary property; or operate a business on or adjacent to the dispensary property that sells alcoholic beverages. O. Environment. Runoff and waste disposal by the dispensary where cultivation occurs must be in compliance with any applicable city, county, regional, state, and federal laws and regulations. A violation of any applicable city, county, regional, state, or federal law will be deemed a violation of this article and of the permit, and shall render the permit void and revocable by the city. (Ord. 1032 1 (Exh. A))

32-75 Location of dispensaries.

A dispensary shall not relocate or operate a dispensary at any place other than the address of the dispensary property or the physical location for which the original dispensary permit was granted without obtaining from city council at a public hearing authorization to relocate a dispensary. A dispensary permit shall become null and void upon any relocation or operation at any place other than the physical location for which the original dispensary permit was granted without such city council authorization. (Ord. 1032 1 (Exh. A))

32-76 Inspection of dispensaries.

A. City officials may enter and inspect a dispensary property at any time between the hours of 7:00 a.m. and 9:00 p.m. with reasonable notice on any day of the week or at any reasonable time to ensure compliance and enforcement of the provisions of this article. B. City officials may inspect and demand copies of records maintained by the dispensary, except for private medical records that shall be made available to law enforcement agencies only pursuant to a properly executed search warrant, subpoena, or court order. C. No person shall refuse, impede, obstruct, or interfere with an inspection pursuant to this article. (Ord. 1032 1 (Exh. A))

32-77 Review, denial, suspension and revocation of residential cultivation permits and dispensary permits.
A. The city manager may deny, revoke, or suspend a residential cultivation permit or dispensary permit on the following grounds: 1. The permit application(s) and/or documents submitted are incomplete, filed late, or not responsive and/or fail to demonstrate compliance with the requirements of this article. 2. The issuance of the residential cultivation permit or dispensary permit at the proposed location is inconsistent with state law, the provisions of this article, or this code. 3. The residence or dispensary has caused secondary criminal or public nuisance impacts in the surrounding area or neighborhood, including, but not limited to, disturbances of the peace, illegal drug activity, harassment of passersby, littering, loitering, illegal parking, loud noises, or lewd conduct. 4. The applicant, permittee, management member, or any employee is a juvenile. 5. The applicant, permittee, management member, or any employee has violated any provision of this article. 6. The residence or dispensary has failed to pay fees, penalties, or taxes required by this code or has failed to comply with the production of records or other reporting requirements of this article. 7. The residence or dispensary, or one or more management members, employees, or volunteers, has violated a provision of this article, conditions of the permit, conditions imposed by another city-issued permit, or any provision of any other local, state, or federal law, regulation, order or permit. 8. It appears, based upon the information before the city manager, that the applicant or permittee has provided a false statement of material fact or has knowingly omitted a material fact in the application for, or renewal of, a residential cultivation permit or dispensary permit. 9. The applicant, permittee, or one or more management members or employees of a dispensary has been convicted of a felony, or has engaged in misconduct that is substantially related to the qualifications, functions or duties of a medical marijuana cultivator or dispensary operator. A conviction within the meaning of this section means a plea or verdict of guilty, or a conviction following a plea of nolo contendere. Notwithstanding the above, an application shall not be denied solely on the basis that the applicant, any management member or any employee has been convicted of a felony if the person convicted has obtained a certificate of rehabilitation (expungement of felony record) under California law or under a similar federal statute or state law where the expungement was granted. 10. The applicant, permittee or dispensary has previously or is currently engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices. B. Notice of Permit Violation. When the city manager determines that acts are being performed, or conditions exist, which are in violation of a residential cultivation permit or dispensary permit, the city manager shall provide the permittee notice that a violation of this article has occurred. If, based on such violations, the city manager proposes to suspend, modify, or revoke a dispensary permit, written notice of the proposed suspension, modification or revocation shall be served on the dispensary at least 10 days prior to the date of the proposed suspension, modification or revocation. Upon the date of the proposed suspension, modification, or revocation, the dispensary permittee shall immediately cease all operations permitted under the dispensary permit. The notice shall contain:

1. A brief statement of the grounds for such suspension, modification, or revocation. 2. A statement that the permittee may appeal the denial in accordance with SLTCC 32-78. 3. A statement that the failure to appeal the notice of suspension, modification or revocation will constitute a waiver of all rights to an appeal hearing, and the suspension, modification, or revocation will be final. If the city manager determines that all operations permitted under the residential cultivation or dispensary permit have not ceased, the city manager may effectuate the abatement of the public nuisance by the use of city forces or by such contractors as may, in the judgment of the city manager, be necessary to abate the nuisance. C. If any dispensary, management member, or employee of a dispensary is convicted of a felony or is convicted of a misdemeanor for misconduct that is substantially related to the qualifications, functions, or duties of a dispensary, the city manager may immediately revoke the dispensary permit without prior notice. D. The city manager may abate any and all nuisances or violations of this article for cultivating or dispensing marijuana without a permit. (Ord. 1032 1 (Exh. A))

32-78 Denial, suspension, revocation, and nonrenewal of residential cultivation permits and dispensary permits Appeals.
A. Except as otherwise provided in this article, an applicant, permittee, or dispensary aggrieved by the decision of the city manager in denying, suspending, revoking, or not renewing a residential cultivation permit or dispensary permit may appeal the decision by filing a written appeal, accompanied by a nonrefundable appeal fee, with the city managers office within 10 days from the date of service of the violation notice or notice of denial, revocation, or suspension from the city manager. Nothing in this section shall confer on any person the right to appeal a notice of violation for cultivating or dispensing marijuana without a permit. The written appeal shall contain: 1. A brief statement in ordinary and concise language of the specific action protested, together with any material facts claimed to support the contentions of the appellant. 2. A brief statement in ordinary and concise language of the relief sought, and the reasons why it is claimed the protested action should be reversed or otherwise set aside. 3. The verification (by declaration under penalty of perjury) of the applicant or permittee as to the truth of the matters stated in the appeal. B. The appeal hearing shall be conducted by the city council. C. Upon receipt of any appeal filed pursuant to this section, the city manager shall calendar it for hearing as follows: 1. If the appeal is received by the city manager no later than 10 days prior to the next regular city council meeting, it shall be calendared for hearing at said meeting. 2. If the appeal is received by the city manager on a date less than 10 days prior to the next regular city council meeting, it shall be calendared for the next subsequent meeting, or shall be calendared for a special meeting, upon the decision of the city manager to do so. D. Failure of any person to file a timely appeal in accordance with the provisions of this section shall constitute an irrevocable waiver of the right to an administrative hearing and the city managers decision shall be final.

E. Only those matters or issues specifically raised by the appellant in the appeal notice shall be considered in the hearing of the appeal. F. Any denial, suspension, revocation, or nonrenewal of a residential cultivation permit or dispensary permit shall be stayed during the pendency of an appeal which is properly and timely filed pursuant to this section. Such a stay shall have no impact on the citys right to abate any nuisances in accordance with abatement procedures set forth in this article. Fines assessed pursuant to this article shall be stayed beginning on the date that a proper appeal is filed with the city and shall resume upon a denial of the appeal. G. Appeal Hearings. 1. The city manager shall prepare a staff report for the city council regarding the citys managers decision to deny, suspend, revoke, or not renew a residential cultivation permit or dispensary permit. The staff report shall contain findings of fact and an explanation of the city managers determination. 2. At the time set for hearing, the city council shall proceed to hear the testimony of the city manager, the appellant, or other competent persons, including members of the public, respecting those matters or issues specifically listed by the appellant in the notice of appeal. 3. If it is shown that one or more grounds exist to condition, deny, suspend, revoke, or not renew a residential cultivation permit or dispensary permit, the city council shall affirm the city managers decision. 4. The decision of the city council shall be a final decision and shall not be appealable. H. The appeal procedures set forth in this article shall be final and conclusive and appellant shall have no other right to appeal under the city code. (Ord. 1032 1 (Exh. A))

32-79 Penalties, violations.

A. Fines. Any person violating this article for failing to comply with a permit issued pursuant to this article, for cultivating marijuana without a permit, or for distributing marijuana without a permit shall be punished by a fine not to exceed $1,000. Such person shall be deemed guilty of a separate offense for each and every day during any portion of which any violation of this article is committed, continued or permitted by such person. B. Complaints. Complaints of suspected violations of this article shall be directed to the building official. C. Recovery by Property Owner. A property owner who rents or leases a residence, building, or any structure to any person who violates any provision of this article may recover for actual damages to the residence, building, or structure against the tenant as allowed under federal, state, or local law, or any other remedy provided by law. D. Nuisance Per Se. Any violation of this article is hereby declared a public nuisance per se. Any person violating any provision of this article shall be deemed guilty of an infraction. (Ord. 1028 1 (Exh. A); Ord. 1032 1 (Exh. A). Formerly 32-72)

32-80 Remedies cumulative.

Unless otherwise expressly provided, the remedies, procedures and penalties provided in this article are cumulative to each other and to any other remedies, procedures and penalties available under state law or the city code.

In addition to any other remedy allowed by law, any person who violates a provision of this article is subject to revocation of a permit pursuant to this article, criminal sanctions, civil actions, and administrative penalties pursuant to the city code. In addition to criminal sanctions, civil penalties, and remedies as provided in this article, imposition of enforcement, collection and administrative review of violations of this article may be enforced pursuant to any applicable portions of the city code. (Ord. 1032 1 (Exh. A))

32-81 Liability and indemnification.

A. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this article shall not become a personal liability of any public officer or employee of the city. B. Permittees pursuant to this article hereby agree to save, defend, indemnify and keep harmless the city and its officials, officers, employees, representatives, agents and volunteers from all actions, claims, demands, litigation, or proceedings, including those for attorneys fees, against the city in consequence of the granting of this permit, and will, in all things, strictly comply with the conditions under which this permit is granted, if any. (Ord. 1028 1 (Exh. A); Ord. 1032 1 (Exh. A). Formerly 32-73)

32-82 Severability.
If any provision of this article, or the application thereof to any person or circumstance, is held invalid or ineffective by any court of competent jurisdiction, or by reason of any preemptive legislation, that invalidity shall not affect the validity of the remaining provisions of this article. The city council declares that it would have passed this article and each section, subsection, subdivision, sentence, clause and phrase, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or words be declared invalid. (Ord. 1028 1 (Exh. A); Ord. 1032 1 (Exh. A). Formerly 32-74)