(1) Purpose. The purpose and intent of this section is to permit and regulate the distribution of cannabis and cannabis products between cannabis permittees in order to promote the health, safety, morals, and general welfare of the residents and businesses within the city. The city is authorized to regulate this activity pursuant to state law.

(2) Scope – Medicinal Cannabis Only. This section permits and regulates the commercial cannabis production activity of distribution of medicinal cannabis and cannabis products based within the city pursuant to state law, including MAUCRSA. Subject to the terms of this chapter, distribution permits may be issued by the city for the distribution of medicinal cannabis and cannabis products based within the city pursuant to and in accordance with state law, including MAUCRSA. Distribution of cannabis and cannabis products based within the city requires a development agreement with the city and must be located within the applicable permit zone.

(3) “Distribution activities” includes the receiving and releasing of cannabis and cannabis products for inspection, testing, and quality assurance, as required under applicable state law and such other activities as are permitted pursuant to state law.

(4) A distribution permittee shall only distribute cannabis and cannabis products between cannabis permittees or to facilities or portions of facilities wholly controlled by such distribution permittee to the extent permitted by state law.

(5) A distribution permittee shall inspect all cannabis and cannabis products received by it for quality assurance prior to distributing to any cannabis permittee, as required under applicable state law.

(6) In addition to the application requirements in CMC 5.20.060, a distribution permittee shall register with the city each location within the city where cannabis and cannabis products are stored for purposes of distribution activities within the city.

(7) A distribution permittee shall distribute cannabis and cannabis products to cannabis permittees only after such cannabis and cannabis products have been inspected and quality tested in accordance with applicable state law, including MAUCRSA.

(8) A distribution permittee may also hold any other permit type to the extent permitted by state law. To the extent permitted by state law, a distribution permittee that also holds another permit type may self-distribute its cannabis products. (Ord. 730 § 22, 2022).