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Ordinance No. NS-XXX <br />Page 46 of 68 <br /> <br /> <br />be reported to the police department within twenty-four (24) hours of the loss, destruction <br />or damage. <br />Sec. 40-106. Audits – Cooperatives/Collectives. <br />Annual audits. No later than September 30 of every year, each licensed medical <br />marijuana collective shall be liable to file with the city an independent audit or financial <br />review of its operations of the previous calendar year. Provided, however, that licensed <br />collectives which operate on a vertically or horizontally integrated basis as established in <br />Chapter 21, Article XII of this Code, or that are co-located on shared premises may file a <br />consolidated audit or independent financial review. The form and contents of the <br />document shall be specified by the executive director of finance and management <br />services, or his/her designee(s). The Executive Director of Finance and Management <br />Services, or his or her designee(s) may waive this requirement for certain licensed <br />collectives in accordance with guidelines established by the Finance and Management <br />Services Agency. <br />Sec. 40-107. Applicability to existing medical marijuana operations. <br />Any existing medical marijuana collective, dispensary, operator, establishment, or <br />provider that does not comply with the requirements of this article must immediately cease <br />operation until such time, if any, when it complies fully with the requirements of this article. <br />No medical marijuana collective, dispensary, operator, establishment, or provider that <br />existed prior to the enactment of this article shall be deemed to be a legally established <br />use under the provisions of this article, and such medical marijuana collective, <br />dispensary, operator, establishment, or provider shall not be entitled to claim legal <br />nonconforming status. <br />Sec. 40-108. Compliance with this article and state law. <br />(a) It is unlawful for any person to: <br />i. Cause, permit or engage in the giving away of marijuana, or <br />ii. Own, establish, operate, use or permit the establishment or operation of a medical <br />marijuana collective or cooperative, or to participate as an employee, contractor, <br />agent, responsible person or volunteer of a collective or cooperative, except as <br />provided in this article, and pursuant to any and all other applicable local and state <br />laws. <br />iii. The prohibition in subsection (ii) above includes, renting, leasing, or otherwise <br />permitting a medical marijuana business to occupy or use a location, vehicle, or <br />other mode of transportation. <br />(b) It is unlawful for any person to cause, permit or engage in any activity related to <br />medical marijuana except as provided in Health and Safety Code § 11362.5 et seq., <br />and pursuant to any and all other applicable local and state laws.