§ 5.22.012. Application and fee requirements.

(a)

Following issuance of a marijuana establishment license issued by the department pursuant to NRS 453D.210, the city will evaluate whether to grant any proposed marijuana establishment a business license pursuant to title 4 and 5 after the applicant has provided all documents required by this chapter and city staff, has agreed to all conditions of the license required by the city, and has paid all applicable fees, and an initial nonrefundable application fee as set forth in the adopted fee schedule which application fee does not exceed any similar fee imposed on a business pursuant to NRS Chapter 268 and 369. The city initially authorizes up to eight retail marijuana stores, with up to four retail marijuana store licenses being provided to existing medical marijuana dispensaries as dual licensees, and up to four new retail marijuana licensees to new retail marijuana stores. The issuance of city licenses for marijuana establishments, including retail marijuana stores, will be considered in order of the department's rankings pursuant to the regulations. Marijuana establishments who have been licensed by the department may not operate in the city until the city has issued a business license for the operation.

(b)

There are five marijuana establishment business license categories:

(1)

Retail marijuana store;

(2)

Marijuana cultivation facility;

(3)

Marijuana product manufacturing facility;

(4)

Marijuana distributor; and

(5)

Marijuana testing facility.

A separate application and license is required for each marijuana establishment license a person holds and seeks to operate within the city. A person operating more than one type of marijuana establishment must apply for and receive a separate license for each type of marijuana establishment he seeks to operate within the city.

(c)

The city may impose and collect for revenues or for regulation, or both, a license tax on a marijuana establishment as a flat fee, percentage of the gross revenue of the marijuana establishment, or a combination of a flat fee and a percentage of gross revenue. The license tax and fees for marijuana establishments may not exceed the limits set forth in NRS Chapter 268. If a license tax is collected in whole, or in part, on a percentage of the gross revenue of the marijuana establishment, the gross revenue of the marijuana establishment shall be determined by using the same method the department uses to calculate the sales price of the marijuana for purposes of excise taxes due to the state under the regulations and NRS Chapters 372A and 453D. The marijuana establishment shall provide to the city, and authorizes the department to provide to the city, all information the marijuana establishment provided to the department, as required by the regulations and NRS Chapters 372A and 453D, to determine the gross revenue of the marijuana establishment, and grants the city the same powers as granted to the department pursuant to the regulations and NRS Chapters 372A and 453D. The tax imposed is separate from and in addition to any general sales and use taxes that apply to retail sales of tangible personal property.

(d)

The license requirement set forth in this chapter shall be in addition to, and not in lieu of, any other licensing and permitting requirements imposed by any other law, code or ordinance. In addition, each application for a marijuana establishment business license shall contain:

(1)

A complete and accurate copy of the application and all accompanying documents filed with the department pursuant to NRS 453D including, but not limited to all information required to be produced to the department as required by the regulations.

(2)

A copy of the license issued by the department for each marijuana establishment.

(3)

A site plan with the following:

a.

Name of the marijuana establishment.

b.

Site address and assessor's parcel number.

c.

The city regulatory zone for the parcel.

d.

Proof of compliance, at the time of application for the business license with all spacing requirements set forth in RMC 18.08.202 and NRS shall be provided by a State of Nevada licensed surveyor. NRS spacing requirements include NRS 453D.210 which establishes a 1,000-foot separation from a public or private school, preschool through twelfth grade, and a 300-foot separation from a community facility. All required spacing criteria shall be measured in a straight line from the front door of the marijuana establishment to the closest parcel line, as shown on the Washoe County Assessor's records.

e.

Elevation drawings or photographs of the proposed building which demonstrate that the building is consistent with the traditional style of pharmacies and medical offices in the city and meets all requirements of NRS 453D and the regulations.

f.

A detailed rendering of proposed signage. In addition, the applicant shall provide evidence that the department has approved the name, logo, sign(s) and advertisement(s) of the marijuana establishment as required by NRS 453D and the regulations.

(4)

The name and physical address of any other marijuana establishment within the city which any owner, officer, manager or director has ownership interest in, a contractual relationship with or is otherwise associated with.

(5)

The name and location of the off-site marijuana cultivation facility providing the marijuana, if applicable. The name and location of the marijuana testing facility, if applicable.

(6)

A deed showing the applicant is the owner of the property where the marijuana establishment will be operated. If the applicant is not the owner of the property where the marijuana establishment will be operated, a copy of the lease, rental agreement, license or authorization letter from the property owner acknowledging and giving permission for the proposed use of the property as a marijuana establishment and acknowledgement that the property owner is aware that the use, cultivation, distribution, production, possession and transportation of marijuana remains illegal under the CSA.

(7)

A security plan, including a depiction of the location and configuration of security cameras, indicating how the security plan complies with the requirements related to monitoring and securing the licensed premises as required by NRS 453D and the regulations.

(8)

A copy of the conditions of approval the applicant has executed with the city, which terms will be a condition of any license issued, and may include, by way of example, and without limitation:

a.

A limitation of the products and services to be produced or sold by the marijuana establishment.

b.

Hours of operation.

c.

Accounting requirements that includes how sales and inventory will be tracked on a daily, weekly and monthly basis and how this information will be stored and safeguarded.

d.

Restrictions on signs and advertisements including all proposed exterior and interior signage.

e.

An acknowledgment that the applicant, and the owner of the property upon which the marijuana establishment is located, understands applicable 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 concerning the operation of a marijuana establishment. The written statement shall also acknowledge that any violation of any laws or regulations of the State of Nevada or of the city, or any activity in violation of any guidance or directives issued by the U.S. Department of Justice, in such place of business, or in connection therewith, or the commencement of any legal proceeding relating to such marijuana establishment by federal authorities, may render the permit and such license subject to immediate suspension or revocation.

f.

A condition that the licensee, and its owners, managers, agents, employees and affiliates jointly and severally agree to indemnify, defend and hold harmless the city, and any of its elected or appointed officers, agents, employees or attorneys from any and all claims, demands, actions, damages, decrees, judgments, attorney fees, costs and expenses which may be asserted against the city, or such elected or appointed officers, employees or attorneys arising out of or in any manner connected with the marijuana establishment that is subject of the license, including, without limitation, any injury, loss or damage, including claims arising from bodily injury, personal injury, sickness, disease, death, property loss of damage or any other loss of any kind whatsoever arising there from. The licensee's duty to defend and indemnify the city hereunder shall apply regardless of the city's active or passive fault. The licensee's duty to defend the city is absolute and shall arise as soon as any demand or claim is asserted against the city and is not conditioned upon a finding of fault of the licensee. The city is entitled to choose the attorney assigned to defend against the claims and the licensee shall immediately pay all defense fees and costs charged by the attorney selected by the city.

g.

The city may require the licensee to obtain a surety bond, in the minimum amount of $500,000.00, at his own expense, for the benefit of the city and the applicant's defense and indemnity obligations, and remain in force throughout the term of the license and three years following expiration or termination of the license.

h.

The licensee shall provide and maintain at all times and at its own expense a certificate of insurance at amounts and terms approved by the license division prior to issuance or renewal of a license. The minimum amount which may be required by the license division shall be $1,000,000.00 per occurrence, $2,000,000.00 general aggregate for bodily injury and property damage arising out of licensed activities and $1,000,000.00 products and completed operations aggregate, commercial automobile coverage in a minimum of $1,000,000.00 for any vehicles used in connection with the marijuana establishment, and excess liability in a minimum of $3,000,000.00. The city shall be named as an additional insured on all general liability, umbrella, and excess insurance policies as city, its elected officials, officers, agents, employees and volunteers are included as additional insured. All policies shall be primary over any other valid and collectible insurance. If a licensee is unable to secure insurance coverage, this provision may be modified or waived by the city in its discretion.

i.

Conditions addressing how the marijuana establishment will address the current federal priorities relating to the conflict between state and federal marijuana laws.

j.

Other conditions the city may require, in its sole and absolute discretion, as conditions to the license to protect the public health, safety and general welfare of the citizens of the city and to regulate the use of buildings, structures, land use, business and other purposes.

(Ord. No. 6467, § 3, 6-6-18)