ATTACHMENT A. Cannabis Regulations

ATTACHMENT A Cannabis Regulations

CITY OF BELLFLOWER RESOLUTION NO. 17-44 A RESOLUTION IMPLEMENTING TITLE 14 OF THE BELLFLOWER MUNICIPAL CODE BY ESTABLISHING APPLICATION REQUIREMENTS, MINIMUM QUALIFICATIONS FOR CANNABIS -RELATED BUSINESS PERMITS, THE NUMBER OF AVAILABLE PERMITS, AND STANDARD CONDITIONS OF APPROVAL; AND SUPERSEDING RESOLUTION NO. 16-72. THE CITY COUNCIL RESOLVES AS FOLLOWS: SECTION 1. The City Council finds and declares that: A. On October 10, 2016, the City Council adopted Resolution No. 16-72 for the purpose of establishing the minimum qualifications for persons seeking to obtain a commercial cannabis business permit within the City; B. That Resolution was adopted in anticipation of the City Council adopting Ordinance No. 1323 which would have added Chapter 14. 04 to Title 14 of the Bellflower Municipal Code (" BMC") establishing general requirements for obtaining a permit to operate a cannabis related business within the City of Bellflower ( a " Permit"). Ordinance No. 1323, however, has not yet been adopted by the City Council; C. Since October 2016, the City Council conducted a series of public workshops during which it considered various matters regarding regulation of commercial cannabis businesses. As a result, the City Council made various changes to draft regulations governing commercial cannabis businesses; D. The City Council introduced Ordinance No. 1323 on August 14, 2017, which legalizes and regulates commercial cannabis businesses within the City; E. Ordinance No. 1323 provides that that the City Council may, by resolution, establish minimum qualifications for persons seeking to obtain a Permit. Based upon the changes made since Resolution No. 16-72 was originally adopted, it is desirable to amend Resolution No. 16-72 in its entirety forth in this Resolution. as set SECTION 2. Dates of Acceptance. Applications for a Permit issued pursuant to BMC Title 14 will be accepted beginning September 27, 2017, in accordance with Ordinance No. 1323. Pre-screening for qualified applicants, as determined by this Resolution, may commence beginning upon the City Manager' s sole discretion. Applications will be accepted on a first come, first serve basis. Timely submission of an application will not guarantee issuance of a permit or upon the adoption of Ordinance No. 1323 based maintain the rank order in which applications are received ( e. g., the first application received may not be the first application processed). No application, however, can be deemed complete in accordance with Ordinance No. 1323 until it becomes effective in accordance with applicable law. Page 1 of 6

Resolution No. 17-44 Page 2 of 6 SECTION 3. Form and Content of Application. In addition to the requirements set forth in BMC 14. 08. 040, applications for a Permit must: A. Be filed by a natural person in the name of each applicant proposing to conduct a cannabis -related business. The person filing be a principal for the applicant. the application must B. Every application must be signed by authorized representative, under penalty of perjury. the proprietor, or the proprietor's C. Permit applications will be in a form prescribed by the City designee, and contain all of the following information: Manager, or 1. The name, mailing address, and daytime and evening telephone numbers of the person filing the application; 2. The business name, address, and telephone number of the single fixed location for which a license is sought; 3. The name and mailing address authorized by each proprietor to receive all notices. If such an address is not supplied, notices will be sent to the business address; 4. Government issued identification to determine that each applicant, manager, and employee of the cannabis -related business is over 18 years of age; 5. The applicant' s Federal Employer Identification Number; 6. Whether or not the proprietor was previously issued a Permit that was suspended or revoked and, if so, the dates of the suspension period or revocation date; 7. Documentation demonstrating that that 75 percent of the applicants and managers of the cannabis -related business are California residents and have been for at least three years immediately preceding the date of the application; 8. Evidence of the legal right for the applicant to occupy and use real property proposed for a cannabis -related business. In the event that the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to use of the real property as a cannabis -related business by the applicant; and 9. Such other information as the City reasonably necessary for administering or enforcing Manager, or designee, deems BMC Title 14.

Resolution No. 17-44 Page 3of6 D. If an applicant is a corporate entity, the Permit application must also include: 1. Copy Organization; of the applicant' s Articles of Incorporation or Articles of 2. Copy of the applicant' s bylaws or operating agreement; 3. Copy of the applicant's Certificate of Status issued by the California Secretary of State; 4. Copy of the applicant' s Entity Franchise Tax Board; Status Letter from the California 5. The identification of any individual with a financial interest in the applicant including the address, phone number, email address, description of percentage ownership interest, and copies of government issued identification for each individual; E. A business plan must be filed with the application. Business plans must, at a minimum, provide: 1. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. 2. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility maintenance costs. costs, and other operation and 3. A pro forma for at least three years of operation. 4. How the cannabis -related business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impact on its neighbors and the surrounding community. 5. A demonstration that the applicant will implement a local preference plan to hire City of Bellflower residents at 200% above the " Living wage" for the Federal Poverty Level for a family of two. F. The application must include a detailed description of Fire prevention, suppression, HVAC and alarm systems that includes an assessment of the cannabis -related business' s fire safety by a qualified Fire prevention suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/ threats and will have both written and physical mechanisms in place to deal with each specific situation.

Resolution No. 17-44 Page 4 of 6 G. A security plan that includes a description and detailed schematic of the overall security for the cannabis -related business. Applicants must detail their operational security including, without limitation, general security the facility, employee specific policies, training, transactional delivery security. policies for sample written policies, security, visitor security, third - party contractor security, and In particular Applicants should address ingress and egress access, perimeter security, product security ( at all hours), internal security measures for access ( area specific), types of security cameras), and security personnel to be employed. The security systems ( alarms and plan must also include an assessment of site security by a qualified security consultant. Such security plans may be submitted in confidence. H. A traffic and parking study prepared by vehicle and parking impacts. a licensed engineer to mitigate I. An annual contribution of $ 5, 000 to a Drug specified by City Council resolution. Rehabilitation Program to be SECTION 4. Minimum Qualifications. In addition to all other requirements of applicable law including, meet the following minimum qualifications: without limitation, BMC Title 14, applicants for a A. The applicant must demonstrate that the applicant is: Permit must 1. Is a person of good character, honesty, and integrity; 2. Is a person whose background, reputation and associations will not result in adverse publicity for the City development; and of Bellflower or its economic 3. Has adequate business competence and practical experience for operating the cannabis -related business. B. Each applicant under the application will undergo a Fingerprint -Based Criminal History Records Check conducted by the City Police Department ( or the Los Angeles County Sheriff's Department) which may include Live Scan and any indicated follow- up investigation. C. The applicant must demonstrate that obtaining a Permit will be in the best interests of the City of Bellflower. The following objective criteria may be used in making such a determination for issuing a Permit: 1. Has there been an adequate period of performance by the applicant demonstrating experience for operating a cannabis -related business? 2. Does the applicant have sufficient key personnel to operate a cannabis -related business to demonstrate effective managerial capacity and control of operations?

Resolution No. 17-44 Page5of6 3. Does the applicant have other cannabis -related businesses inside or jurisdiction that demonstrate the applicant' s outside the City' s competency in operating such businesses? 4. Does the applicant have a reasonable and practical business plan for operating a cannabis -related business within the City' s jurisdiction? BMC' s minimum requirements as to permissible 5. Notwithstanding the locations, is the cannabis facility proposed by the applicant in a location acceptable to the City Council; aesthetically pleasing; and adequate in size? D. There must be adequate financing to pay all current obligations and to provide adequate working capital to finance opening of a cannabis -related business ( which may be shown in a business plan described below). Adequate financing" means a minimum of $400, 000 as demonstrated by a letter of credit or other financial records. E The applicant must demonstrate that the proposed funding cannabis -related business is of the 1. Adequate for the nature of the proposed operation; and 2. From a suitable source. The suitability of the source of funds is determined by the criteria set forth in Section 4(A)( 1-3), above. F. As to the real property upon which the cannabis -related business is proposed, the applicant must either: 1. Own the real property in fee; or 2. Be a Tong -term lessee with a possessory interest in the real property. For purposes of this Resolution, a " long term" lessee means the applicant must have a lease with a term of at least 10 years to use the real property for a cannabis -related business. SECTION 5. Maximum Permits. Pursuant to BMC 14. 08. 030(A), the City Council authorizes a total of 12 medical cannabis business permits be issued as follows: A. Cannabis Dispensary ( including accessories and cannabis delivery): 4 the incidental retail sale of cannabis

Resolution No. 17-44 Page 6 of 6 SECTION 6. Standard Conditions of Approval. The City Manager, or designee, is directed to utilize the standard conditions of approval attached as Exhibit " A," and incorporated by reference, in substantially the form provided in SECTION 7. Delegation of Authority. The City Manager, Exhibit A. or designee, is authorized to promulgate administrative policies and procedures (" AP& P") that implement BMC Title 14 and, specifically, such additional qualifications for obtaining a Permit that may be desirable for administrative purposes. Nothing in such AP& P can substantively alter this Resolution; the AP& P must be reconciled with the intent of BMC Title 14 and this Resolution. SECTION 8. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution' s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. SECTION 9. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable. SECTION 10. To the extent that Resolution No. 16-72 ( adopted October 10, 2016), and any other resolution pertaining to implementing Municipal Code by establishing Title 14 of the Bellflower application requirements, minimum qualifications for cannabis -related business permits, the number of available permits, and standard Conditions of Approval is incorporated into this Resolution, it is superseded in its entirety. SECTION 11. The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, duly appointed deputy, may attest thereto. or her SECTION 12. This Resolution will become effective immediately and will remain effective unless repealed or superseded. upon adoption PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 14th DAY OF AUGUST 2017. r ATTEST: Ron Schnablegg ay yor Mayr: Oc iqui, City Jerk APPR, FORM: Ka. Berge City Attorney ATTACH L ' T: Exhibit A - aw Enforcement Conditions Of Approval For All Cannabis -Related Businesses

CITY OF BELLFLOWER RESOLUTION NO. 17-44 - " EXHIBIT A" LAW ENFORCEMENT CONDITIONS OF APPROVAL FOR ALL CANNABIS -RELATED BUSINESSES In addition to all applicable provisions of the Bellflower Municipal Code (" BMC"), the Applicant, agrees that it will comply with the following provisions as conditions for the City of Bellflower's approval of both a Cannabis Business Permit and Conditional Use Permit. I. Definitions Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in these Standard Conditions of Approval (" SCOA"). Words and phrases undefined in this SCOA have the same meaning as set forth in BMC Chapter 14. 04. Batch" means a specific quantity of cannabis or cannabis product that is intended to have uniform character and quality, within specified limits, and is produced according to a single manufacturing order during the same cycle of manufacture. Manager" means an individual who is an employee of a cannabis business and who, directly or indirectly, in an approved Operations Plan. is engaged in the management of the cannabis business as set forth On -Site Designated Representative" means a Manager who is designated by the cannabis business to be present, and who is present, at all times during the cannabis business' s hours of operation. Owner" means any individual member of a Cannabis business having more than a ten percent ( 10%) interest, legal or equitable, or otherwise, in the Cannabis business. Security Personnel" means any person( s) who perform( s) security related tasks on behalf of the Cannabis business. 11. General Conditions 1. The cannabis business must be developed and/ or used in the manner requested and must be in substantial conformity with the submitted plans date-stamped XXX, unless revisions and/ or additional conditions are specifically required herein. 2. The Applicant and its successors in interest must indemnify, protect, defend ( with legal counsel reasonable acceptable to the City), and hold harmless, the City, and any agency or instrumentality thereof, and its elected and appointed officials, officers, employees, and agents from and against any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs, and expenses of whatever nature, including reasonable attorney' s fees and disbursements ( collectively " Claims") arising out of or in any way relating to this related to the development project, any discretionary approvals granted by the City of the project or the environmental review conducted under the California Environmental Quality Act, Public Resources Code 21000, et seq., If the City Attorney is required to enforce any including attorney' s fees, must be paid for by the Applicant. Page 1 of 6 for the project. conditions of approval, all costs,

Resolution No. 17-44 Exhibit A Law Enforcement Conditions Of Approval For All Cannabis -Related Businesses Page 2 of 6 3. The Applicant must reimburse the City for all attorneys' fees expended by the City that are directly related to the processing of this project. The City will not issue a Certificate of Occupancy or other final occupancy are paid by the Applicant. approval until all attorneys' fees 4. The Applicant must submit to the City Manager, or designee, a signed copy of these conditions of approval acknowledging acceptance, and compliance with the conditions herein within 30 days from the date of approval by the City Council. The conditions of approval must be signed, notarized and returned to the City Manager, or designee, before any plan check submittal or construction permit application or implementation of the requested entitlement. 5. This decision is not effective until Applicant acknowledges acceptance of all conditions and any appeal period has lapsed, or a waiver of right to appeal is filed or if there is an appeal, until a final decision has been made on the appeal. By use of the entitlements granted by a development application, the Applicant acknowledges agreement with conditions of approval. 6. Anything which is not shown on the application/ plans, or which is not specifically approved, or which is not incompliance with this section, is not approved. Any application and/ or plans which are defective as to, without limitation, omission, dimensions, scale, use, colors, materials, encroachments, easements, will render any entitlements null and void. III. Security 7. Cannabis businesses must be equipped with, and at all times be monitored by, a web -based closed- circuit television for security recording system must be of adequate quality, purposes. The camera and color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or functional before adjacent to the Cannabis business. The system must be fully processing, cultivating or dispensing of cannabis. The recordings of the monitoring must be maintained for a period of not less than 90 days and must be made available and accessible to the Police Chief and any other City official charged with enforcing the provisions of the BMC immediately upon request for review and copying, without the need for a search warrant, subpoena or court order. The cannabis business must also provide the Police Chief with the URL address of any on- site web -based video surveillance to monitor remotely at any time without a warrant, subpoena or court order. 8. The cannabis business must have a centrally monitored fire and burglar alarm system. This system must be fully functional at all times and before processing, of cannabis at the cannabis business. At a minimum, this cultivating or dispensing alarm must cover the perimeter of the cannabis business and must focus on those areas where cannabis is grown, produced, harvested, stored, packaged or dispensed. A professional alarm company must monitor this alarm at all times. 9. The cannabis business must contain a fireproof safe or a fireproof storage system and all records must be stored in that safe or system.

Resolution No. 17-44 Exhibit A Law Enforcement Conditions Of Approval For All Cannabis -Related Businesses Page 3of6 10. Crime Prevention Through Environmental Design ( CPTED). Exterior lighting cannabis business and parking area lighting on the for the cannabis business must be balanced; cannot result in glare on adjoining security systems required above to ensure that all areas of the cannabis business are visible; and must provide increased lighting at all entrances to the cannabis required in this subsection must be turned on from dusk to business. The lighting dawn. properties; must complement the 11. Cannabis must be stored in buildings that are completely enclosed, and in a locked vault or safe, or other secured storage structure, which is bolted to the floor, or structure of the cannabis business. 12. Windows and roof hatches of the cannabis business must be secured from the inside with bars so as to prevent unauthorized entry, and must be equipped with latches that may be released quickly from the inside to allow exit in the event of emergency in compliance with all applicable Building Code provisions. 13. Exterior doors to the cannabis business must remain locked from the outside to prevent unauthorized ingress to the cannabis business. Ingress must be allowed by means of a remote release operated from within the cannabis business. In all cases, doors must remain operable from the inside to allow egress without the use of a key or special knowledge. Access -controlled egress doors must comply with the California Building Code provisions. 14. No person can possess any firearm while in the cannabis business without having first obtained a license from the appropriate state or local agency authorizing the person to be in possession of such firearm. 15. Persons possessing a firearm while in the cannabis business must provide the City Manager and Police Chief, 10 days before bringing the firearm onto the Cannabis business, with the following: a. A copy of the license issued to the person by the appropriate state or local agency authorizing him or her to possess such firearm; b. A copy of his or her law enforcement identification ( employed by a law enforcement agency); and c. A copy of his or her California Driver's license or Card. if he or she is California Identification 16. There must be at least one Security Personnel on duty in a cannabis business during its hours of operation. If the cannabis has a separate cultivation site, at least one Security Personnel must be present at that Cultivation Site on duty 24 hours a inside the day, seven days a week. The Security Personnel must provide security cannabis business, along the outside perimeter of the cannabis business, at parking sites immediately adjacent to the cannabis business and used by members of the cannabis business, and at sidewalks adjacent to the cannabis business. The cannabis business must employ Security Personnel subject to the following requirements:

Resolution No. 17-44 Exhibit A Law Enforcement Conditions Of Approval For All Cannabis -Related Businesses Page 4 of 6 a. All Security Personnel must register and maintain valid registration status with the state of California' s Department of Consumer Affairs. At no time must any Security Personnel register with the State at any less than that of a proprietary private security officer. and registration for all level that is Proof of application Security Personnel must be maintained by the cannabis business and consist of copies of all relevant documentation including: application forms, receipts for application fees and live scan fees, and actual proof of registration. b. While on duty, all Security Personnel must have a nameplate containing the Security Personnel' s full name and the word " SECURITY" printed in bold, capital letters. The nameplate must be exhibited prominently on the clothing, at chest level, and must be visible and easily read at all times. The nameplate must be a minimum of two inches high and four inches wide, with the required information printed in capital letters, at least three- fourths inches high and in a contrasting nameplate, the Security Personnel' s color. As an alternative to a name and the word " SECURITY" may be embroidered on the Security Personnel' s outermost garment with the required information meeting the above specifications and located at chest level. IV. Operating 17. Cannabis cannot be visible with the naked eye from any public or other private property. 18. All areas devoted to dispensing cannabis must be secured from public access by means of a unauthorized entry. locked gate and any other security measures necessary to prevent 19. At no time can any cannabis business have any of the following premises: items on the a. Any controlled substances, other than cannabis; b. Any paraphernalia used for the ingestion of any substance, including cannabis; type of controlled c. Alcoholic beverages; or d. Firearms, except in strict compliance with federal, state and local laws. 20. A sign must be posted in a conspicuous place inside the cannabis business advising, in English, Spanish, Khmer and Tagolog, the following: " The sale and use of cannabis are violations of federal law. The use of cannabis may impair a person' s ability to operate a motor vehicle or heavy machinery. This facility is registered in accordance with the Bellflower Municipal Code."

Resolution No. 17-44 Exhibit A Law Enforcement Conditions Of Approval For All Cannabis -Related Businesses Page5of6 21. Each Cannabis business must designate an on- site representative who must be present during all hours of the Cannabis business' s operation. The On -Site Designated Representative must meet the following minimum requirements: a. Be a Manager for the Cannabis business; b. Comply with all applicable laws; c. Carry on his or her person, at all times when he or she is functioning as the on- site representative, a valid government issued photo Identification Card or license; d. Upon request by the Police Chief or any other City official charged with enforcing the provisions of the BMC, produce such photo Identification Card or license for inspection; e. Be available at the telephone number identified in the registration as the on- site landline telephone number for the cannabis business; f. Cooperate fully with the Police Chief and any other City official charged with enforcing the provisions of the BMC with any inquiry, inspection, request, or investigation necessary or appropriate to implement the requirements of the BMC or to enforce any other State or local law; g. Immediately report to the Police Chief any violations of State or conditions which the On -Site Designated reasonably or local law Representative knows, or should know, exist on the cannabis business and at the cannabis business and could result or have resulted in harm or an imminent threat of harm to the health, safety or general welfare of any person or member of the public; and h. Immediately report to the Police Chief, the County Health Department, and members of the cannabis business any information indicating that a member experienced an adverse reaction to, or other difficulty any cannabis procured from the cannabis business. V. Public Safety and Safety of Cannabis Business related to, 22. Each cannabis business must operate in a manner such that dispensing cannabis does not adversely affect the health or safety of nearby properties through creation of mold, mildew, dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts. 23. Each cannabis business must utilize appropriate air purification systems and air scrubbers wherever cannabis is cultivated, processed, manufactured or dispensed so as to prevent the odor of cannabis from emanating beyond the walls of the cannabis business. 24. Cultivation of cannabis cannot create hazards due to the use or storage of materials, processes, products or wastes.

Resolution No. 17-44 Exhibit A Law Enforcement Conditions Of Approval For All Cannabis -Related Businesses Page 6 of 6 25. Each and every cannabis business must ensure that it has safe growing facilities, chemicals and fertilizers are properly stored, carbon dioxide levels are tested, areas are properly vented, and mold is tested and controlled for the safety of city personnel and enforcement personnel that may be required to conduct a site visit. VI. Property Maintenance 26. The cannabis business must be kept in a clean and safe condition by, at a minimum, performing all of the following tasks: remove and store all trash, litter, rubbish and debris on the a. Properly cannabis business at the end of each business day; b. Properly dispose business; of all trash, litter, rubbish and debris from the Cannabis c. Remove graffiti placed upon the Cannabis business and Cannabis business within forty-eight hours of its occurrence; d. Keep driveways, sidewalks, park strips, fire access roads and streets on or adjacent to the cannabis business clear and clean; e. Provide lighting on the cannabis business to ensure the safety public and employees; and of the f. Otherwise operate in a manner that does not create or result in any significant adverse impacts upon the cannabis business or within 300 feet of the cannabis business. By signing this document, Project Conditions listed in this document. XXXX, certifies that he has read, understood, and agrees to the XXXX Applicant") If Corporation or similar entity, need two officer signatures or evidence that one signature binds the company}

STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) CITY OF BELLFLOWER SS 1, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 17-44 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of the Bellflower City Council of August 14, 2017, by the following vote to wit: AYES: Council Members Koops, Santa Ines, Dunton, and Mayor Schnablegger NOT PARTICIPATING: Council Member Garza Dated: August 17, 2017 ayr City of ZZ/ Ochiqui, City Clerk Bellflower, California SEAL)

CITY OF BELLFLOWER RESOLUTION NO. 17-65 A RESOLUTION ESTABLISHING A POLICY SUBSTANTIALLY IMPLEMENTING AND RATIFYING DETERMINATIONS MADE BY THE CITY MANAGER AND STAFF DURING THE CANNABIS PERMIT APPLICATION PROCESS. THE CITY COUNCIL RESOLVES AS FOLLOWS: SECTION 1. The City Council finds and declares as follows: Purpose. This Resolution is enacted in order to authorize the City Manager to promulgate administrative policies and procedures, in a form approved by the City Attorney, substantially implementing the policies approved in attached Exhibit A, and incorporated by this reference, which are ratified by the City Council. SECTION 2. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution's effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. SECTION 3. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable. SECTION 4. The City Manager will establish policies and procedures as necessary to carry out this policy. SECTION 5. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. SECTION 6. adoption. This Resolution will become effective immediately upon PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS gth DAY OF OCTOBER 2017. ATTEST: Attachment: Exhi A - Determinations Regarding Medical Cannabis Permits

Resolution No. 17-65 Exhibit A - Determinations Regarding Medical Cannabis Permits 1. A maximum of 12 Conditional Use Permits (CUP)/Business Permits for medical cannabis-related businesses will be issued by the City. Of these 12 permits, a maximum of 4 permits for dispensaries will be issued. The Bellflower City Council will consider establishing a limit on the number of permits for other categories of medical cannabisrelated business permits in September 2017. 2. A one-time non-refundable processing fee of $28,500 is required at the time the application is submitted. This fee is for processing of the CUP/Business Permit Application only. All other City fees related to issuance of building permits for property improvements and any related public improvements must also be paid when construction plans are submitted for review and building permit issued. 3. A separate application and $28,500 application fee is required for each type of medical cannabis use applied for. 4. The City will collect fees for the first 12 applications submitted. If one of the first 12 applications is determined to be incomplete, the City will contact the next applicant in the order the applications were received to request the application fee to review and process that application. 5. A separate annual permit administration fee of $25,000 is required when the permit is issued. All cannabis-related businesses will also be required to pay the cannabis tax under the BMC, which is separate from the fees associated with processing and monitoring the permits. 6. A Business License Application would be submitted at the time a permit was issued and must be obtained before the business can commence operations. 7. Each cannabis business permit will be valid for twelve months after the date of issuance. Cannabis business permits may be renewed as provided in Section 14.08.060 of the Bellflower Municipal Code. 8. The City's minimum qualifications for cannabis-related business permits requires that the applicant for a cannabis-related business permit either own the real property or have a long-term lease (at least 10 years) allowing cannabis-related business on the property where the business is proposed. 9. The City cannot control the wording of the lease and that if a cancellation clause were included, it would nevertheless be considered a long-term lease if it were at least 10 years long. Page 1of6

Resolution No. 17-65 Exhibit A Page 2 of 6 10. Medical Cannabis testing labs are regulated under Title 14 of the Bellflower Municipal Code. The City Council has not authorized permits for such facilities at this time and, therefore, the City is not accepting applications for testing facilities. The City Council will consider standards for testing labs and whether to issue permits for this use in September 2017. 11. Medical cannabis-related businesses are allowed in the C-G and M-1 zones subject to the location restrictions defined in 14.08.020 of the BMC. Cannabis-related businesses are not allowed within: 600 feet of any parcel containing a school, or 300 feet of a parcel containing a religious facility; park; licensed child daycare facility; youth center; or licensed drug or alcohol rehabilitation facility, or 1,000 feet of any other parcel upon which a cannabis business is operating. 12. The Cannabis-related Use Location Restriction Map shows the location of all parcels in the City's C-G and M-1 zones in relation to schools; religious facilities; parks; licensed child daycare facilities; youth centers; and licensed drug or alcohol rehabilitation facilities. 13. The buffer is determined based on the distance between the boundary of the parcel containing the sensitive use and the boundary of the parcel where the medical cannabis-related permit is proposed. The location of buildings on a parcel is not considered in determining the buffer distance. 14. The City will only be issuing permits for medicinal cannabis uses as defined in the City's regulations. 15. The City will review and consider the applications in the order submitted. Submittal of a complete application does not guarantee approval. A complete application needs to be submitted to be considered for approval. Complete applications will be evaluated in the order submitted based on compliance with the standards and requirements defined in the City's regulations. The City Council has full discretion to approve or deny any application. Please note, however, that this meeting was mandatory for all applicants. If you or one of your representatives did not attend the meeting, the City will not be accepting your application. 16. Complete applications will be considered in the order submitted. If an application is incomplete, an opportunity to provide the information needed for a complete application will be provided. Once the application is deemed complete, it will be placed in the submittal order. 17. Submittal of a complete application does not guarantee approval. A complete application needs to be submitted to be considered for approval. Complete applications will be evaluated in the order submitted based on compliance with the standards and requirements defined in the City's regulations.

Resolution No. 17-65 Exhibit A Page 3 of 6 18. Both the Conditional Use Permit and Cannabis Business Permit are discretionary permits; the City Council will determine whether or not to issue such permits to an applicant following a public hearing. The City Council has full discretion to approve or deny any application. 19. The City Council will consider the approval of permits at a single hearing to be held in December 2017. The specific date for this hearing has not been determined yet. 20. The City will issue permits for non-volatile manufacturing uses only. 21. The City Manager, or designee, will review the Security Plans. The Fire Chief and Building Official will also be reviewing components of the application. 22. The City will issue permits allowing operation before the end of the year. When a state permit is obtained, a copy must be provided to the City. 23. A proprietor is a person with an ownership interest in the business. Loans provided subject to a formal loan agreement are financial obligations that do not constitute an ownership interest. 24. The City is requiring that 75 percent of the individuals that are proprietors of the business be residents of the state. 25. Operating agreements are a required component of the Business Plan. 26. The residency requirement addresses residency in the state and not the City of Bellflower. 27. The application must include proof of California residency for the past 3 years. A California ID, by itself, is insufficient. Any documents that demonstrate proof of residency for the last 3 years are acceptable (Example: Utility Bills). 28. If the property is being leased, the owner of the property is not considered a proprietor. The owner is required to sign the application and consent to the submittal of an application for a medical cannabis-related use on their property. 29. The public hearing notice poster is required to be installed 10 days before the date of the public hearing, as indicated in the application package. 30. The Security Plan will not be made public. The Business Plan will be subject to the Public Records Act.

Resolution No. 17-65 Exhibit A Page 4 of 6 31. A separate Business Plan is required for each type of medical cannabis-related business proposed. One Security Plan will be accepted if two different uses are located on the same parcel. Traffic and parking study can also address both uses proposed on the same parcel. 32. A medical cannabis-related business would fall under BMC Sections 5.08.020 and 5.08.030. 33. Applicant(s) will be required to provide signed acknowledgement of acceptance of the conditions of approval prior to the public hearing if an application is recommended for approval. However, while the standard conditions of approval are being provided ahead of time, there may be specialized conditions that are applicable to a particular site or application. 34. As stated, this sign is required to be installed 10 days prior to the public hearing at which these applications will be considered. The City will notify the applicants for any application that will be considered at the public hearing to be held in December 2017 when the sign for their application is available to be picked up, paid for, and installed. 35. The traffic and parking study must be prepared by a state licensed traffic engineer in accordance with Los Angeles County's Traffic Impact Analysis Report Guidelines (January 1997) and Institute of Transportation Engineers, Parking Generation, 4th Edition. 36. The Bellflower Municipal Code is available online (http://qcode.us/codes/bellflower/) and contains the parking requirements for residential and commercial zones. Applications submitted for cannabis permitting - which includes the Conditional Use Permit Application - must be complete, i.e., the applications must reflect the current physical condition of all properties, not an anticipated future condition of the property. These Q&As are intended to provide general guidance; any individual application will be processed on its qualities. Furthermore, the application requires that both existing and proposed conditions be identified on the Site Plan. Both conditions will be considered. A complete application needs to be submitted to be considered for approval. Complete applications will be based on compliance with the standards and requirements defined in the City's regulations. 37. As indicated in the application, a Fire Prevention and Suppression Plan is required with application submittal and needs to address all possible fire, hazardous material, and inhalation issues/threats. The City's fire regulations, as amended, are adopted by reference into the Bellflower Municipal Code which can viewed at the City's website.

Resolution No. 17-65 Exhibit A Page 5 of 6 38. The City is requiring the traffic and parking impact study to be prepared by a licensed traffic engineer. The traffic engineer preparing the study should define an appropriate approach for determining the amount of trips generated by the type of medical cannabis-related uses proposed and present this approach in the study. For example, and not limitation, a traffic engineer could equate cannabis manufacturing based upon the ITE Manual definitions for manufacturing of like size; or, for dispensaries, use the ITE Manual definition for retail outlets specializing in herbal products. 39. An Operations Plan must be completed and submitted with the application. The Director of Public Safety will review the Operations Plan as part of the application review process. 40. Architectural Plans must be submitted with the application. These plans will be reviewed as part of the application review process. Plans do not need to be approved prior to submittal, though they can be submitted ahead of time at the option of the Applicant. 41. The Fire Suppression Plan that is required to be submitted with the application needs to be prepared by a currently licensed and active Fire Protection Engineer. The Fire Chief, or designee, will be reviewing components of the application. Review of the proposed facility by a Fire Protection Engineer prior to submittal of the application is not required. 42. Applicants will need to comply any applicable State requirements, including any that address track and trace of cannabis-related products. 43. The Live Scan background checks for all persons with an ownership interest in a medical cannabis-related business applying for business and conditional use permits will be conducted by the Los Angeles County Sheriff's Department. At the time of application submittal, a Live Scan Form and information on applying for Live Scan review with the Sheriff's Department will be provided. The Live Scan Form will be provided to the first 12 applicants. The Live Scan background check will be conducted concurrently with review of the application. 44. In the case that two uses are on one property the City would issue one Conditional Use Permit, but issue two separate business permits: one for each use. 45. The application available on the medical cannabis website is a combined application for the Business Permit and CUP for medical cannabis-related businesses and identifies all information required to be submitted with the application. An Environmental Information Form is not required for this application.

Resolution No. 17-65 Exhibit A Page 6 of 6 46. Ordinance No. 1323 (see BMC 14.16.020(P) requires surveillance video to be recorded for a minimum of 45 days. Section 6 of Resolution No. 17-44 authorizes the City Manager to utilize standard conditions of approval that are substantially similar to Exhibit A of Resolution No. 17-44. Condition No. 7 requires surveillance video to be kept for at least 90 days. This Condition No. 7 is consistent with Ordinance No. 1323; it is simply more time than the minimum required by BMC 14.16.020(P). Indeed, conditions of approval for individual permits may, depending on the circumstances of an individual application, require the permittee to keep surveillance video for a period longer than 90 days; that would be consistent both with Ordinance No. 1323 and Resolution No. 17-44. 47. The indemnification agreement is required with the application. The Applicant and its successors in interest must indemnify, protect, defend (with legal counsel reasonable acceptable to the City), and hold harmless, the City, and any agency or instrumentality thereof, and its elected and appointed officials, officers, employees, and agents from and against any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs, and expenses of whatever nature, including reasonable attorney's fees and disbursements (collectively "Claims") arising out of or in any way relating to the project, any discretionary approvals granted by the City related to the development of the project or the environmental review conducted under the California Environmental Quality Act, Public Resources Code Section 21000, et seq., for the project. If the City Attorney is required to enforce any conditions of approval, all costs, including attorney's fees, must be paid for by the Applicant. 48. The application needs to be submitted on behalf of the entity that would operate the business.

STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )SS CITY OF BELLFLOWER ) I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 17-65 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of October 9, 2017, by the following vote to wit: AYES: Council Members - Dunton, Garza, Koops, Santa Ines, and Mayor Schnablegger Dated: October 10, 2017 -~~~r Chiqu=; citi erk Mayra City of Bellflower, California (SEAL)

CITY OF BELLFLOWER RESOLUTION NO. 18-05 A RESOLUTION IMPLEMENTING TITLE 14 OF THE BELLFLOWER MUNICIPAL CODE BY AMENDING AND RESTATING APPLICATION REQUIREMENTS; MINIMUM QUALIFICATIONS FOR CANNABIS RELATED BUSINESS PERMITS; THE NUMBER OF AVAILABLE PERMITS; AND STANDARD CONDITIONS OF APPROVAL. THE CITY COUNCIL RESOLVES AS FOLLOWS: SECTION 1: The City Council finds and declares that: A. On December 18, 2017, the City Council held public hearings to issue conditional use permits ( CUP ) and medical cannabis business permits ( MCBP ). At the conclusion of these hearings, the City Council had issued nine CUPs and 10 MCBPs (the Initial MCBPs ). B. The City Council considered the CUPs and MCBPs in pursuant to the procedures established by the Bellflower Municipal Code ( BMC ) including, without limitation, BMC Title 14, BMC Chapter 17.94, Resolution No. 17-44 (adopted August 14, 2017), and Resolution No. 17-65 (adopted October 9, 2017) (collectively, the Medical Cannabis Regulations ). C. After approving the Initial MCBPs, the City conducted a review of the Medical Cannabis Regulations to determine whether the permit processing could be improved. D. This Resolution and the accompanying Ordinance Nos. 1351 and 1353 reflect desirable changes to the Medical Cannabis Regulations including, without limitation, establishing the qualifications for future applicants seeking a CUP and MCBP. SECTION 2: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Resolution. Words and phrases undefined in this Resolution have the same meaning as set forth in BMC Chapter 3.37 (Cannabis Tax), Chapter Title 14 (Cannabis-Related Businesses), and Chapter 17.94 (Cannabis-Related Uses). Acceptance Date means the date, if any, the City Council approves for accepting Relocation Requests or new MCBP and CUP applications. The date designation may be accomplished either by resolution or by minute order including, without limitation, this Resolution. Hearings means the public hearings held on December 18, 2017 for the initial CUPs and MCBPs. Permit means, collectively, a CUP/MCBP as authorized by the BMC and this Resolution. Page 1 of 10

Resolution No. 18-05 Page 2 of 10 Ranking means the placement of a person on the Waiting List as determined by the City in accordance with the Medical Cannabis Regulations. Ranking Method means the method by which the City determines a person s ranking on the wait list. Unless otherwise determined by the City Council via resolution or minute order, the ranking method will be accomplished electronically on a first-come, first-served, basis. Relocation Request means a request filed by an applicant on the Transfer List that was on the Transfer List and either (1) was denied a Permit during the Hearings because of inadequate parking; or (2) was granted a Permit and seeks to relocate the site of a cannabis business. Relocation Request Fee means a fee established by city council resolution to be collected upon the City receiving a Relocation Request. Transfer List means the applicants listed in the Staff Report for Agenda Item No. 5-A dated December 18, 2017. Wait List means those persons accepted by the City via a Ranking Method on the Acceptance Date. SECTION 3: Joint Application. The City Manager is authorized to continue processing joint applications for Permits in accordance with the Medical Cannabis Regulations and this Resolution. SECTION 4: Denials during the Hearings. Except as otherwise provided for Relocation Requests, applications that were denied during the Hearings will be treated as if they were revoked or suspended per BMC 14.28.040. Except as provided in the BMC, such denied applications are ineligible for the Transfer List or Wait List. SECTION 5: Transfer List. On February 27, 2018, the City Manager, or designee, may process applications for a Relocation Request as follows: A. Relocation Request. Persons on the Transfer List may submit a Relocation Request, in a form provided by the City Manager, or designee. The Relocation Request must be accompanied by the Relocation Request fee. B. Acceptance Date. On February 27, 2018, the City Manager, or designee, is authorized to administratively establish an Acceptance Date.

Resolution No. 18-05 Page 3 of 10 C. Recommendations. 1. Upon receiving a timely filed Relocation Request, the City Manager, or designee, will determine the completeness of the request within five business days. If the request is incomplete, the requestor will have two business days to correct any deficiencies. 2. The City Manager, or designee, will review complete Relocation Requests based upon the Ranking established by this Section. 3. Following the City Manager s consideration of Relocation Requests, the City Manager will provide a recommendation to the City Council regarding whether a Permit should be issued for an alternative location based upon applicable law including this Resolution. D. Ranking. Persons on the Transfer List will be ranked as follows: 1. First Category. Applicants who obtained a CUP, but not a MCBP, and supplement their application with the requirements set forth in Section 9(D)(5-6) of this Resolution. 2. Second Category. Applicants who obtained a CUP, but not a MCBP, and do not supplement their application with the requirements set forth in Section 9(D)(5-6) of this Resolution. E. Public Hearing. The City Council will conduct a public hearing in accordance with the BMC and this Resolution. In addition to any other requirements of applicable law, the City Council will consider a Relocation Request pursuant to Section 9(D)(5-6) of this Resolution to determine whether transferring the MCBP is in the public interest. F. Annual Permit Fee. Should the City Council approve a Relocation Request, the new permittee must pay the additional permit administration fee required by BMC 14.08.080 for the duration of the MCBP. SECTION 6: Wait List. For persons seeking a new Permit pursuant to Section 10 of this Resolution, i.e., if any Permits are available after the Initial MCBP, the City Manager, or designee, is authorized to create a Wait List as follows: A. Acceptance Date. The City Manager, or designee, is authorized to administratively establish an Acceptance Date for persons seeking a MCBP. B. Ranking Method. On the Acceptance Date, the City Manager, or designee, may accept applications for MCBPs via the Ranking Method. C. Process. Timely Permit applications will be processed in accordance with the BMC and this Resolution.

Resolution No. 18-05 Page 4 of 10 SECTION 7: Effect of Submission. Timely submission of a Relocation Request or an application on the Acceptance Date does not guarantee obtaining a Relocation Request, CUP, or MCBP. SECTION 8: Form and Content of Application. In addition to the requirements set forth in BMC 14.08.040, applications for a Permit must: A. Be filed by a natural person in the name of each applicant proposing to conduct a cannabis related business. The person filing the application must be a principal for the applicant. B. Every application must be signed by the proprietor, or the proprietor s authorized representative, under penalty of perjury. C. Permit applications will be in a form prescribed by the City Manager, or designee, and contain all of the following information: 1. The name, mailing address, and daytime and evening telephone numbers of the person filing the application; 2. The business name, address, and telephone number of the single fixed location for which a license is sought; 3. The name and mailing address authorized by each proprietor to receive all notices. If such an address is not supplied, notices will be sent to the business address; 4. Government issued identification to determine that each applicant, manager, and employee of the cannabis related business is over 18 years of age; 5. The applicant s Federal Employer Identification Number; 6. Whether or not the proprietor was previously issued a Permit that was suspended or revoked and, if so, the dates of the suspension period or revocation date; 7. Documentation demonstrating that that 75 percent of the applicants and managers of the cannabis related business are California residents and have been for at least three years immediately preceding the date of the application; 8. Evidence of the legal right for the applicant to occupy and use real property proposed for a cannabis related business. In the event that the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to use of the real property as a cannabis related business by the applicant; and

Resolution No. 18-05 Page 5 of 10 9. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14. D. If an applicant is a corporate entity, the Permit application must also include: 1. Copy of the applicant s Articles of Incorporation or Articles of Organization; 2. Copy of the applicant s bylaws or operating agreement; 3. Copy of the applicant s Certificate of Status issued by the California Secretary of State; 4. Copy of the applicant s Entity Status Letter from the California Franchise Tax Board; 5. The identification of any individual with a financial interest in the applicant including the address, phone number, email address, description of percentage ownership interest, and copies of government issued identification for each individual; E. A business plan must be filed with the application. Business plans must, at a minimum, provide: 1. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. 2. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation and maintenance costs. 3. A pro forma for at least three years of operation. 4. How the cannabis related business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impact on its neighbors and the surrounding community. 5. A demonstration that the applicant will implement a local preference plan to hire City of Bellflower residents at 200% above the Living wage for the Federal Poverty Level for a family of two.

Resolution No. 18-05 Page 6 of 10 F. The application must include a detailed description of Fire prevention, suppression, HVAC and alarm systems that includes an assessment of the cannabis related business s fire safety by a qualified Fire prevention suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. G. A security plan that includes a description and detailed schematic of the overall security for the cannabis related business. Applicants must detail their operational security including, without limitation, general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, Applicants should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan must also include an assessment of site security by a qualified security consultant. Such security plans may be submitted in confidence. H. A traffic and parking study prepared by a licensed engineer to mitigate vehicle and parking impacts. The traffic and parking study must be prepared by a state licensed traffic engineer in accordance with Los Angeles County s Traffic Impact Analysis Report Guidelines (January 1997) and Institute of Transportation Engineers, Parking Generation, 4th Edition. The traffic engineer preparing the study should define an appropriate approach for determining the amount of trips generated by the type of medical cannabis-related uses proposed and present this approach in the study. For example, and not limitation, a traffic engineer could equate cannabis manufacturing based upon the ITE Manual definitions for manufacturing of like size; or, for dispensaries, use the ITE Manual definition for retail outlets specializing in herbal products. I. An annual contribution of $5,000 to a Drug Rehabilitation Program to be specified by City Council resolution or minute order. SECTION 9: Minimum Qualifications. In addition to all other requirements of applicable law including, without limitation, BMC Title 14, applicants for a Permit must meet the following minimum qualifications: A. The applicant must demonstrate that the applicant is: 1. Is a person of good character, honesty, and integrity; 2. Is a person whose background, reputation and associations will not result in adverse publicity for the City of Bellflower or its economic development; and 3. Has adequate business competence and practical experience for operating the cannabis related business.

Resolution No. 18-05 Page 7 of 10 B. Each applicant under the application will undergo a Fingerprint-Based Criminal History Records Check conducted by the City Police Department (or the Los Angeles County Sheriff s Department) which may include Live Scan and any indicated follow-up investigation. C. Each applicant must disclose whether it was (or is) a defendant in any current or past civil or criminal enforcement action. If such enforcement action is concluded, the applicant must disclose the outcome; if such enforcement is pending, the applicant must disclose its status. D. The applicant must demonstrate that obtaining a Permit will be in the best interests of the City of Bellflower. The following objective criteria may be used in making such a determination for issuing a Permit: 1. Has there been an adequate period of performance by the applicant demonstrating experience for operating a cannabis related business? 2. Does the applicant have sufficient key personnel to operate a cannabis related business to demonstrate effective managerial capacity and control of operations? 3. Does the applicant have other cannabis related businesses inside or outside the City s jurisdiction that demonstrate the applicant s competency in operating such businesses? 4. Does the applicant have a reasonable and practical business plan for operating a cannabis related business within the City s jurisdiction? 5. Notwithstanding the BMC s minimum requirements as to permissible locations, is the cannabis facility proposed by the applicant in a location acceptable to the City Council; aesthetically pleasing; and adequate in size? 6. Would the applicant provide a public benefit in the form of removing blight; improving public welfare; or otherwise assisting in advancing the City s public interests? E. There must be adequate financing to pay all current obligations and to provide adequate working capital to finance opening of a cannabis related business (which may be shown in a business plan described below). Adequate financing means a minimum of $400,000 as demonstrated by a letter of credit or other financial records.

Resolution No. 18-05 Page 8 of 10 F. The applicant must demonstrate that the proposed funding of the cannabis related business is 1. Adequate for the nature of the proposed operation; and 2. From a suitable source. The suitability of the source of funds is determined by the criteria set forth in Section 4(A)(1-3), above. G. As to the real property upon which the cannabis related business is proposed, the applicant must either: 1. Own the real property in fee; or 2. Be a long-term lessee with a possessory interest in the real property. For purposes of this Resolution, a long term lessee means the applicant must have a lease with a term of at least 10 years to use the real property for a cannabis related business. SECTION 10: Maximum Permits; Type. Pursuant to BMC 14.08.030(A), the City Council authorizes a total of 12 MCBPs be issued; no more than four (4) of such MCBPs may be for dispensaries. After issuing the Initial MCBPs, there are two nondispensary MCBPs available. The City Council does not authorize any type cannabis business permit other than those specified in the Medical Cannabis Regulations including, without limitation, this Resolution. Nothing in this Resolution, or otherwise, is intended to nor does it allow permitting for recreational cannabis. SECTION 11: following: Fees. In accordance with the BMC, applicants must pay the A. A one-time non-refundable processing fee established by separate resolution (currently, $28,500) must be paid at the time an application is filed. Persons on the waiting list who obtained a CUP, but not a MCBP, need not pay an additional application fee. This fee is for processing the CUP/MCBP application only. All other City fees related to building permits and any related public improvements are separate and must be paid in accordance with the BMC. B. A separate application fee must be filed for each type of MCBP. C. The City will collect application fees based upon the number of MCBPs available. For example, at the time this Resolution was adopted, a total of two MCBPs were available. Consequently, the City will collect application fees from two applicants on the waiting list (unless they already obtained a CUP after the Hearings see Section 9(A)). If an application is determined to be incomplete, the City will contact the next ranked applicant. Application fees are not refundable.

Resolution No. 18-05 Page 9 of 10 D. If the City Council approves a MCBP, the applicant must separately pay an annual permit administration fee pursuant to BMC 14.08.080. The baseline fee is $25,000 (as established in 2017) will be increased pursuant to BMC 14.08.080(B). SECTION 12: Taxes. In additional to any other applicable taxes, persons must also pay a business license tax and cannabis tax in accordance with the BMC. Such taxes are separate and apart from the fees required to obtain a CUP and MCBP. For a MCBP to become effective, a permittee must: A. Pay the business license tax and obtain a business license in accordance with the BMC (see, BMC 5.08.020 and 5.08.030); B. Ensure, to the satisfaction of the City Manager, or designee, that the permittee will pay all cannabis taxes in accordance with the requirements of BMC Chapter 3.37 including, without limitation, acknowledging the forms required to remit the tax. SECTION 13: Standard Conditions of Approval. The City Manager, or designee, is directed to utilize the standard conditions of approval attached as Exhibit A, and incorporated by reference, in substantially the form provided in Exhibit A. Applicant(s) will be required to provide signed acknowledgement of acceptance of the conditions of approval prior to the public hearing if an application is recommended for approval. However, while the standard conditions of approval are being provided ahead of time, there may be specialized conditions that are applicable to a particular site or application. SECTION 14: Delegation of Authority. The City Manager, or designee, is authorized to promulgate administrative policies and procedures ( AP&P ) that implement BMC Title 14 and, specifically, such additional qualifications for obtaining a Permit that may be desirable for administrative purposes. Nothing in such AP&P can substantively alter this Resolution; the AP&P must be reconciled with the intent of BMC Title 14 and this Resolution. SECTION 15: Preservation; Medical Cannabis Regulations. This Resolution is intended to amend and restate the uncodified portions of the Medical Cannabis Regulations, i.e., those resolutions previously adopted by the City Council to implement the BMC. Repealing or amending those Medical Cannabis Regulations does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Resolution s effective date. Any such amended or repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. Unless amended or superseded by this Resolution, all parts of the uncodified Medical Cannabis Regulations remain in full force and effect. Any conflict between this Resolution and the uncodified Medical Cannabis Regulations will be resolved in favor of this Resolution.

CITY OF BELLFLOWER RESOLUTION NO. 18-38 A RESOLUTION AMENDING RESOLUTION NO. 18-05 TO ESTABLISH REQUIREMENTS FOR CANNABIS-RELATED PERMIT APPLICATIONS; ESTABLISH MINIMUM QUALIFICATIONS FOR CANNABIS-RELATED BUSINESS PERMITS; CONFIRM THE NUMBER OF AVAILABLE PERMITS; AND CONFIRM STANDARD CONDITIONS OF AP PROV AL. THE CITY COUNCIL RESOLVES AS FOLLOWS: SECTION 1: The City Council finds and declares that: A. On June 11, 2018, the City Council determined that persons considered during the December 18, 2017, public hearings for Conditional Use Permits ("CUP") and Medical Cannabis Business Permits ("MCBP") may apply for the remaining three non-dispensary MCBPs in 2018 (the "2018 MCBPs"). B. This Resolution supplements the regulations implemented by the Bellflower Municipal Code ("BMC") including, without limitation, BMC Title 14; BMC Chapter 3.37 ; and BMC Chapter 17.94. It also supplements or restates the policies and procedures established, without limitation, by Resolution No. 17-44 (adopted August 14, 2017); Resolution No. 17-65 (adopted October 9, 2017); and Resolution No. 18-05 (adopted February 26, 2018) (collectively, the BMC and Resolutions are referred to as the "Medical Cannabis Regulations"). C. While this Resolution restates the general procedures for processing CUP/MCBPs set forth in Resolution No. 18-05, it also establishes policies and procedures for considering applications for the 2018 MCBPs only. Except as specifically provided in this Resolution for the 2018 MCBPs, all other requirements of the Medical Cannabis Regulations remain in effect. SECTION 2: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Resolution. Words and phrases undefined in this Resolution have the same meaning as set forth in the Medical Cannabis Regulations. "2017 Hearings" means the public hearings held on December 18, 2017, for the initial CUPs and MCBPs. "2018 MCBPs" means three non-dispensary MCBPs that may be issued as of June 11, 2018. "Acceptance Date" means July 16, 2018 or as soon thereafter as Is practicable as determined by the City Manager in his sole discretion. Page 1 of 9

Resolution No. 18-38 Page 2 of 9 "Eligible List" means, except as otherwise provided in this Resolution for Relocation Applications, applicants listed in the Staff Report for Agenda Item No. 5-A dated December 18, 2017, that were awarded a CUP. "Relocation Application" means an application filed by a person on the Eligible List that was denied a CUP/MCBP during the 2017 Hearings because of inadequate parking. SECTION 3: Joint Application. To the extent contemplated in this Resolution for 2018 MCBPs, the City Manager is authorized to continue processing joint applications for CUPs and 2018 MCBPs in accordance with the Medical Cannabis Regulations. SECTION 4: Denials during the 2017 Hearings. Except as otherwise provided for Relocation Applications, applications that were denied during the 2017 Hearings will be treated as if they were revoked or suspended per BMC 14.28.040. Those persons are not part of the Eligible List. SECTION 5: Relocation Application. Persons on the Eligible List may submit a Relocation Application, in a form provided by the City Manager, or designee. The Relocation Application must be accompanied by the entire fee established by Resolution No. 17-45. SECTION 6: Eligible List; Processing. On the Acceptance Date, the City Manager, or designee, may process applications for a 2018 MCBP as follows: A. Relocation Application. Persons on the Eligible List may submit an Application, in a form provided by the City Manager, or designee. B. 2018 MCBP Application. Persons on the Eligible List may submit applications for a 2018 MCBP. Such application must be accompanied by an application fee for each 2018 MCBP being sought in accordance with Resolution Nos. 17-45 and 17-65 (Determination No. 6), less the CUP and CEQA Review fee, for a total of $25,000 per application. C. Recommendations. 1. Upon receiving a timely filed Relocation Application or 2018 MCBP Application (collectively, an "Application"), the City Manager, or designee, will determine the completeness of the Application in accordance with the Medical Cannabis Regulations. 2. Following the City Manager's consideration of the Applications, the City Manager will provide a recommendation to the City Council regarding whether a CUP (for Relocation Applications) and/or 2018 MCBP should be issued.

Resolution No. 18-38 Page 3 of 9 D. Public Hearing. The City Council will conduct a public hearing in accordance with the Medical Cannabis Regulations. The order for considering Applications during the public hearing will be based upon a random drawing conducted by the City Clerk. Applications will be considered by the City Council using a "forced ranking" system to determine which, if any, person will receive a 2018 MCBP. SECTION 7: Effect of Submission. Timely submission of an Application on the Acceptance Date does not guarantee obtaining a CUP or 2018 MCBP. SECTION 8: Form and Content of Application. In addition to the requirements set forth in BMC 14.08.040, applications for a Permit must: A. Be filed by a natural person in the name of each applicant proposing to conduct a cannabis-related business. The person filing the application must be a principal for the applicant. B. Every application must be signed by the proprietor, or the proprietor's authorized representative, under penalty of perjury. C. Permit applications will be in a form prescribed by the City Manager, or designee, and contain all of the following information: 1. The name, mailing address, and daytime and evening telephone numbers of the person filing the application; 2. The business name, address, and telephone number of the single fixed location for which a license is sought; 3. The name and mailing address authorized by each proprietor to receive all notices. If such an address is not supplied, notices will be sent to the business address; 4. Government issued identification to determine that each applicant, manager, and employee of the cannabis-related business is over 18 years of age; 5. The applicant's Federal Employer Identification Number; 6. Whether or not the proprietor was previously issued a Permit that was suspended or revoked and, if so, the dates of the suspension period or revocation date; 7. Documentation demonstrating that that 75 percent of the applicants and managers of the cannabis-related business are California residents and have been for at least three years immediately preceding the date of the application;

Resolution No. 18-38 Page 4 of 9 8. Evidence of the legal right for the applicant to occupy and use real property proposed for a cannabis-related business. In the event that the applicant is not the owner of record of the property, the applicant must provide a notarized statement from the owner of the property acknowledging and consenting to use of the real property as a cannabis-related business by the applicant; and 9. Such other information as the City Manager, or designee, deems reasonably necessary for administering or enforcing BMC Title 14. D. If an applicant is a corporate entity, the Permit application must also include: 1. Copy of the applicant's Articles of Incorporation or Articles of Organization; 2. Copy of the applicant's bylaws or operating agreement; 3. Copy of the applicant's Certificate of Status issued by the California Secretary of State; 4. Copy of the applicant's Entity Status Letter from the California Franchise Tax Board; 5. The identification of any individual with a financial interest in the applicant including the address, phone number, email address, description of percentage ownership interest, and copies of government issued identification for each individual; E. A business plan must be filed with the application. Business plans must, at a minimum, provide: 1. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. 2. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation and maintenance costs. 3. A proforma for at least three years of operation. 4. How the cannabis-related business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impact on its neighbors and the surrounding community. 5. A demonstration that the applicant will implement a local preference plan to hire City of Bellflower residents at 200% above the "Living wage" for the Federal Poverty Level for a family of two.

Resolution No. 18-38 Page 5 of 9 F. The application must include a detailed description of Fire prevention, suppression, HVAC and alarm systems that includes an assessment of the cannabis-related business's fire safety by a qualified Fire prevention suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. G. A security plan that includes a description and detailed schematic of the overall security for the cannabis-related business. Applicants must detail their operational security including, without limitation, general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, Applicants should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan must also include an assessment of site security by a qualified security consultant. Such security plans may be submitted in confidence. H. A traffic and parking study prepared by a licensed engineer to mitigate vehicle and parking impacts. The traffic and parking study must be prepared by a state licensed traffic engineer in accordance with Los Angeles County's Traffic Impact Analysis Report Guidelines (January 1997) and Institute of Transportation Engineers, Parking Generation, 4th Edition. The traffic engineer preparing the study should define an appropriate approach for determining the amount of trips generated by the type of medical cannabis-related uses proposed and present this approach in the study. For example, and not limitation, a traffic engineer could equate cannabis manufacturing based upon the ITE Manual definitions for manufacturing of like size; or, for dispensaries, use the ITE Manual definition for retail outlets specializing in herbal products. I. An annual contribution of $5,000 to a Drug Rehabilitation Program to be specified by City Council resolution or minute order. SECTION 9: Minimum Qualifications. In addition to all other requirements of applicable law including, without limitation, BMC Title 14, applicants for a 2018 MCBP must meet the following minimum qualifications: A. The applicant must demonstrate that the applicant is: 1. Is a person of good character, honesty, and integrity; 2. Is a person whose background, reputation and associations will not result in adverse publicity for the City of Bellflower or its economic development; and

Resolution No. 18-38 Page 6 of 9 3. Has adequate business competence and practical experience for operating the cannabis-related business. B. Each applicant under the application will undergo a Fingerprint-Based Criminal History Records Check conducted by the City Police Department (or the Los Angeles County Sheriff's Department) which may include Live Scan and any indicated follow-up investigation. C. Each applicant must disclose whether it was (or is) a defendant in any current or past civil or criminal enforcement action. If such enforcement action is concluded, the applicant must disclose the outcome; if such enforcement is pending, the applicant must disclose its status. D. The applicant must demonstrate that obtaining a Permit will be in the best interests of the City of Bellflower. The following objective criteria may be used in making such a determination for issuing a Permit: 1. Has there been an adequate period of performance by the applicant demonstrating experience for operating a cannabis-related business? 2. Does the applicant have sufficient key personnel to operate a cannabis-related business to demonstrate effective managerial capacity and control of operations? 3. Does the applicant have other cannabis-related businesses inside or outside the City's jurisdiction that demonstrate the applicant's competency in operating such businesses? 4. Does the applicant have a reasonable and practical business plan for operating a cannabis-related business within the City's jurisdiction? 5. Notwithstanding the BMC's minimum requirements as to permissible locations, is the cannabis facility proposed by the applicant in a location acceptable to the City Council; aesthetically pleasing; and adequate in size? 6. Would the applicant provide a public benefit in the form of removing blight; improving public welfare; or otherwise assisting in advancing the City's public interests? E. There must be adequate financing to pay all current obligations and to provide adequate working capital to finance opening of a cannabis-related business (which may be shown in a business plan described below). "Adequate financing" means a minimum of $400,000 as demonstrated by a letter of credit or other financial records.

Resolution No. 18-38 Page 7 of 9 F. The applicant must demonstrate that the proposed funding of the cannabis-related business is 1. Adequate for the nature of the proposed operation; and 2. From a suitable source. The suitability of the source of funds is determined by the criteria set forth in Section 9(A)(1-3), above. G. As to the real property upon which the cannabis-related business is proposed, the applicant must either: 1. Own the real property in fee; or 2. Be a long-term lessee with a possessory interest in the real property. For purposes of this Resolution, a "long term" lessee means the applicant must have a lease with a term of at least 10 years to use the real property for a cannabis-related business. SECTION 10: Maximum Permits; Type. Pursuant to BMC 14.08.030(A), the City Council authorized a total of 12 MCBPs be issued ; not more than four of those MCBPs were for dispensaries. There are three 2018 MCBPs available. The City Council does not authorize any type cannabis business permit other than those specified in the Medical Cannabis Regulations including, without limitation, this Resolution. Nothing in this Resolution, or otherwise, is intended to nor does it allow permitting for recreational cannabis. SECTION 11: following: Fees. In accordance with the BMC, applicants must pay the A. A one-time non-refundable processing fee established by Resolution No. 17-45 must be paid at the time an Application is filed in accordance with this Resolution. This fee is for processing the Application only. All other City fees related to building permits and any related public improvements are separate and must be paid in accordance with the BMC. B. A separate application fee must be filed for each type of MCBP in accordance with Resolution No. 17-65. Application fees are not refundable. C. If the City Council approves a 2018 MCBP, the applicant must separately pay an annual permit administration fee pursuant to BMC 14.08.080. The baseline fee is $25,000 (as established in 2017) will be increased pursuant to BMC 14.08.080(B).

Resolution No. 18-38 Page 8 of 9 SECTION 12: Taxes. In additional to any other applicable taxes, persons must also pay a business license tax and cannabis tax in accordance with the BMC. Such taxes are separate and apart from the Application fees. For a 2018 MCBP to become effective, a permittee must: A. Pay the business license tax and obtain a business license in accordance with the BMC (see, BMC 5.08.020 and 5.08.030); B. Ensure, to the satisfaction of the City Manager, or designee, that the permittee will pay all cannabis taxes in accordance with the requirements of BMC Chapter 3.37 including, without limitation, acknowledging the forms required to remit the tax. SECTION 13: Standard Conditions of Approval. The City Manager, or designee, is directed to utilize the standard conditions of approval attached as Exhibit "A, " and incorporated by reference, in substantially the form provided in Exhibit A. Applicant(s) will be required to provide signed acknowledgement of acceptance of the conditions of approval BEFORE the public hearing if an application is recommended for approval. However, while the standard conditions of approval are being provided ahead of time, there may be specialized conditions that are applicable to a particular site or application. SECTION 14: Delegation of Authority. The City Manager, or designee, is authorized to promulgate Administrative Policies and Procedures ("AP&P") that implement BMC Title 14 and, specifically, such additional qualifications for obtaining a Permit that may be desirable for administrative purposes. Nothing in such AP&P can substantively alter this Resolution; the AP&P must be reconciled with the intent of BMC Title 14 and this Resolution. SECTION 15: Preservation; Medical Cannabis Regulations. This Resolution is intended to amend and restate the uncodified portions of the Medical Cannabis Regulations, i.e., those resolutions previously adopted by the City Council to implement the BMC. Repealing or amending those Medical Cannabis Regulations does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Resolution's effective date. Any such amended or repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. Unless amended or superseded by this Resolution, all parts of the uncodified Medical Cannabis Regulations remain in full force and effect. Any conflict between this Resolution and the uncodified Medical Cannabis Regulations will be resolved in favor of this Resolution.

Resolution No. 18-38 Page 9 of 9 SECTION 16: Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application and, to this end, the provisions of this Resolution are severable. SECTION 17: The Mayor, or presiding officer, is authorized to sign this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, may attest thereto. SECTION 18: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded. PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 25 th DAY OF JUNE 2018. ATTEST: Attachment: Law Enforcement Conditions of Approval for All Cannabis-Rel

RESOLUTION NO. 18-38 - EXHIBIT A LAW ENFORCEMENT CONDITIONS OF APPROVAL FOR ALL CANNABIS-RELATED BUSINESSES In addition to all applicable provisions of the Bellflower Municipal Code ("BMC"), the Applicant, agrees that it will comply with the following provisions as conditions for the City of Bellflower's approval of both a Cannabis Business Permit and Conditional Use Permit. I. Definitions Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in these Standard Conditions of Approval ("SCOA"). Words and phrases undefined in this SCOA have the same meaning as set forth in BMC Chapter 14.04. "Batch" means a specific quantity of cannabis or cannabis product that is intended to have uniform character and quality, within specified limits, and is produced according to a single manufacturing order during the same cycle of manufacture. "Manager" means an individual who is an employee of a cannabis business and who, directly or indirectly, is engaged in the management of the cannabis business as set forth in an approved Operations Plan. "On-Site Designated Representative" means a Manager who is designated by the cannabis business to be present, and who is present, at all times during the cannabis business's hours of operation. "Owner" means any individual member of a Cannabis business having more than a ten percent (10%) interest, legal or equitable, or otherwise, in the Cannabis business. "Security Personnel" means any person(s) who perform(s) security related tasks on behalf of the Cannabis business. 11. General Conditions 1. The cannabis business must be developed and/or used in the manner requested and must be in substantial conformity with the submitted plans date-stamped XXX, unless revisions and/or additional conditions are specifically required herein. 2. The Applicant and its successors in interest must indemnify, protect, defend (with legal counsel reasonable acceptable to the City), and hold harmless, the City, and any agency or instrumentality thereof, and its elected and appointed officials, officers, employees, and agents from and against any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs, and expenses of whatever nature, including reasonable attorney's fees and disbursements (collectively "Claims") arising out of or in any way relating to this project, any discretionary approvals granted by the City related to the development of the project or the environmental review conducted under the California Environmental Quality Act, Public Resources Code 21000, et seq., for the project. If the City Attorney is required to enforce any conditions of approval, all costs, including attorney's fees, must be paid for by the Applicant. Page 1 of 6

Resolution No. 18-38 - Exhibit A Law Enforcement Conditions of Approval for All Cannabis-Related Businesses Page 2 of 6 3. The Applicant must reimburse the City for all attorneys' fees expended by the City that are directly related to the processing of this project. The City will not issue a Certificate of Occupancy or other final occupancy approval until all attorneys' fees are paid by the Applicant. 4. The Applicant must submit to the City Manager, or designee, a signed copy of these conditions of approval acknowledging acceptance, and compliance with the conditions herein within 30 days from the date of approval by the City Council. The conditions of approval must be signed, notarized and returned to the City Manager, or designee, before any plan check submittal or construction permit application or implementation of the requested entitlement. 5. This decision is not effective until Applicant acknowledges acceptance of all conditions and any appeal period has lapsed, or a waiver of right to appeal is filed or if there is an appeal, until a final decision has been made on the appeal. By use of the entitlements granted by a development application, the Applicant acknowledges agreement with conditions of approval. 6. Anything which is not shown on the application/plans, or which is not specifically approved, or which is not incompliance with this section, is not approved. Any application and/or plans which are defective as to, without limitation, omission, dimensions, scale, use, colors, materials, encroachments, easements, will render any entitlements null and void. 111. Security 1. Cannabis businesses must be equipped with, and at all times be monitored by, a web-based closed-circuit television for security purposes. The camera and recording system must be of adequate quality, color rendition and resolution to allow the ready identification of any individual committing a crime anywhere on or adjacent to the Cannabis business. The system must be fully functional before processing, cultivating or dispensing of cannabis. The recordings of the monitoring must be maintained for a period of not less than 90 days and must be made available and accessible to the Police Chief and any other City official charged with enforcing the provisions of the BMC immediately upon request for review and copying, without the need for a search warrant, subpoena or court order. The cannabis business must also provide the Police Chief with the URL address of any on-site web-based video surveillance to monitor remotely at any time without a warrant, subpoena or court order. 2. The cannabis business must have a centrally monitored fire and burglar alarm system. This system must be fully functional at all times and before processing, cultivating or dispensing of cannabis at the cannabis business. At a minimum, this alarm must cover the perimeter of the cannabis business and must focus on those areas where cannabis is grown, produced, harvested, stored, packaged or dispensed. A professional alarm company must monitor this alarm at all times.

Resolution No. 18-38 - Exhibit A Law Enforcement Conditions of Approval for All Cannabis-Related Businesses Page 3 of 6 3. The cannabis business must contain a fireproof safe or a fireproof storage system and all records must be stored in that safe or system. 4. Crime Prevention Through Environmental Design (CPTED). Exterior lighting on the cannabis business and parking area lighting for the cannabis business must be balanced; cannot result in glare on adjoining properties; must complement the security systems required above to ensure that all areas of the cannabis business are visible; and must provide increased lighting at all entrances to the cannabis business. The lighting required in this subsection must be turned on from dusk to dawn. 5. Cannabis must be stored in buildings that are completely enclosed, and in a locked vault or safe, or other secured storage structure, which is bolted to the floor, or structure of the cannabis business. 6. Windows and roof hatches of the cannabis business must be secured from the inside with bars so as to prevent unauthorized entry, and must be equipped with latches that may be released quickly from the inside to allow exit in the event of emergency in compliance with all applicable Building Code provisions. 7. Exterior doors to the cannabis business must remain locked from the outside to prevent unauthorized ingress to the cannabis business. Ingress must be allowed by means of a remote release operated from within the cannabis business. In all cases, doors must remain operable from the inside to allow egress without the use of a key or special knowledge. Access-controlled egress doors must comply with the California Building Code provisions. 8. No person can possess any firearm while in the cannabis business without having first obtained a license from the appropriate state or local agency authorizing the person to be in possession of such firearm. 9. Persons possessing a firearm while in the cannabis business must provide the City Manager and Police Chief, 10 days before bringing the firearm onto the Cannabis business, with the following: a. A copy of the license issued to the person by the appropriate state or local agency authorizing him or her to possess such firearm; b. A copy of his or her law enforcement identification (if he or she is employed by a law enforcement agency); and c. A copy of his or her California Driver's license or California Identification Card. 10. There must be at least one Security Personnel on duty in a cannabis business during its hours of operation. If the cannabis has a separate cultivation site, at least one Security Personnel must be present at that Cultivation Site on duty 24 hours a day, seven days a week. The Security Personnel must provide security inside the cannabis business, along the outside perimeter of the cannabis business, at parking sites immediately adjacent to the cannabis business and

Resolution No. 18-38 - Exhibit A Law Enforcement Conditions of Approval for All Cannabis-Related Businesses Page 4 of 6 used by members of the cannabis business, and at sidewalks adjacent to the cannabis business. The cannabis business must employ Security Personnel subject to the following requirements: a. All Security Personnel must register and maintain valid registration status with the state of California's Department of Consumer Affairs. At no time must any Security Personnel register with the State at any level that is less than that of a proprietary private security officer. Proof of application and registration for all Security Personnel must be maintained by the cannabis business and consist of copies of all relevant documentation including: application forms, receipts for application fees and live scan fees, and actual proof of registration. b. While on duty, all Security Personnel must have a nameplate containing the Security Personnel's full name and the word "SECURITY" printed in bold, capital letters. The nameplate must be exhibited prominently on the clothing, at chest level, and must be visible and easily read at all times. The nameplate must be a minimum of two inches high and four inches wide, with the required information printed in capital letters, at least three-fourths inches high and in a contrasting color. As an alternative to a nameplate, the Security Personnel's name and the word "SECURITY" may be embroidered on the Security Personnel's outermost garment with the required information meeting the above specifications and located at chest level. IV. Operating 1. Cannabis cannot be visible with the naked eye from any public or other private property. 2. All areas devoted to dispensing cannabis must be secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry. 3. At no time can any cannabis business have any of the following items on the premises: a. Any controlled substances, other than cannabis; b. Any paraphernalia used for the ingestion of any type of controlled substance, including cannabis; c. Alcoholic beverages; or d. Firearms, except in strict compliance with federal, state and local laws. 4. A sign must be posted in a conspicuous place inside the cannabis business advising, in English, Spanish, Khmer and Tagalog, the following: 'The sale and use of cannabis are violations of federal law. The use of cannabis may impair a

Resolution No. 18-38 - Exhibit A Law Enforcement Conditions of Approval for All Cannabis-Related Businesses Page 5 of 6 person's ability to operate a motor vehicle or heavy machinery. This facility is registered in accordance with the Bellflower Municipal Code." 5. Each Cannabis business must designate an on-site representative who must be present during all hours of the Cannabis business's operation. The On-Site Designated Representative must meet the following minimum requirements: a. Be a Manager for the Cannabis business; b. Comply with all applicable laws; c. Carry on his or her person, at all times when he or she is functioning as the on-site representative, a valid government issued photo Identification Card or license; d. Upon request by the Police Chief or any other City official charged with enforcing the provisions of the BMC, produce such photo Identification Card or license for inspection; e. Be available at the telephone number identified in the registration as the on-site land line telephone number for the cannabis business; f. Cooperate fully with the Police Chief and any other City official charged with enforcing the provisions of the BMC with any inquiry, inspection, request, or investigation necessary or appropriate to implement the requirements of the BMC or to enforce any other State or local law; g. Immediately report to the Police Chief any violations of State or local law or conditions which the On-Site Designated Representative knows, or reasonably should know, exist on the cannabis business and at the cannabis business and could result or have resulted in harm or an imminent threat of harm to the health, safety or general welfare of any person or member of the public; and h. Immediately report to the Police Chief, the County Health Department, and members of the cannabis business any information indicating that a member experienced an adverse reaction to, or other difficulty related to, any cannabis procured from the cannabis business. V. Public Safety and Safety of Cannabis Business 1. Each cannabis business must operate in a manner such that dispensing cannabis does not adversely affect the health or safety of nearby properties through creation of mold, mildew, dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, or other impacts. 2. Each cannabis business must utilize appropriate air purification systems and air scrubbers wherever cannabis is cultivated, processed, manufactured or dispensed so as to prevent the odor of cannabis from emanating beyond the walls of the cannabis business.