ORDINANCE NO. 3189
(Establish Henderson Municipal Code Chapter 4.115)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HENDERSON,
NEVADA, TO ESTABLISH CHAPTER 4.115 - MEDICAL MARIJUANA FEES
- OF THE HENDERSON MUNICIPAL CODE AND MATTERS PROPERLY
RELATED THERETO.
WHEREAS,
in November 2000, Nevada voters passed an initiative amending Article 4 of
the Nevada Constitution to allow use of marijuana for medicinal purposes; and
WHEREAS,
Senate Bill 374, now codified in NRS 453A, which allows for the creation of
medical marijuana establishments in Nevada was passed by the State
Legislature during the 77"^ Legislative Session; and
WHEREAS,
it is the desire of the City Council to provide access to medical marijuana to
patients within the City of Henderson consistent with the provisions of NRS
453A; and
WHEREAS,
regulation and licensing of medical marijuana establishments is necessary to
protect the safety and welfare of the patients and citizens of the City of
Henderson; and
WHEREAS,
it is also necessary to establish fees related to the regulation and licensing of
medical marijuana establishments; and
NOW, THEREFORE, the City Council of the City of Henderson, Nevada, does ordain:
SECTION 1. Title 4 Business Regulations and Licenses of the Henderson Municipal Code
is hereby amended to include a new chapter, 4.115 - Medical Marijuana Fees
as follows:
Sections:
4.115.010 - Definitions.
4.115.020 - Application fee.
4.115.030 - Origination fees.
4.115.040 - License fees.
4.115.050 - Indemnification and release agreement fee.
4.115.010-Definitions.
Class I medical mariiuana establishment means a business operating a
.cultivation facilitv and a medical mariiuana dispensary at the same location.
Class II medical marijuana establishment means a business operating a
cultivation facility, facility for production of edible mariiuana products or
mariiuana-infused products and a medical mariiuana dispensary at the same
location.
Ordinance No. 3189
Establish Henderson Municipal Code Chapter 4.115
Page 2
Class III medical mariiuana establishment means a business operating a
cultivation facility, facility for production of edible mariiuana products or
mariiuana-infused products and a medical mariiuana dispensary, at one or
more locations, but limited to one location per establishment type.
Cultivation /ac/7/'fv^shall have the same meaninq as set forth in NRS 453A.056.
as may be amended or renumbered.
Facilitv for production of edible mariiuana products or marijuana-infused
products shaW have the same meaning as set forth in NRS 453A.105, as may
be amended or renumbered.
Finding of suitability means that, after investigation, a person is found to
comply with the reguirements of this title which are prereguisite to involvement
with a privileged license. This title authorizes the city council to reguire that "
certain persons who are directiv or indirectly involved with privileged licenses
be found suitable for such involvement so long as that relationship continues.
A finding of suitability relates only to the specific involvement for which it is
made. If the nature of the involvement changes from that for which the
applicant is found suitable, or if. in the iudgment of the city council, new
information concerning the applicant's suitability has become available, he
may be made to submit himself for a new determination of suitability.
Gross revenue, as used in connection with the determination of license fees,
means the total amount of the sale price of all goods sold, originating in the
city and regardless of destination. All such totals are to be calculated without
any deduction therefrom on account of the cost of the property sold, cost of
materials used, labor or service costs, interest paid or payable, or any other
expense whatsoever: provided, however, that cash discounts allowed or taken
on sales or services, all taxes, all allowances for bad debts, and all revenues
derived from business operations covered by another city business license or
licenses, shall be excluded from gross sales.
Independent testing /aboratorv shall have the same meaning as set forth in
NRS 453A.107. as may be amended or renumbered.
Marijuana shall have the same meaning as set forth in NRS 453.096. as may
be amended or renumbered.
Medical marijuana d/spensary shall have the same meaning as set forth in
NRS 453A.115. as may be amended or renumbered.
Medical marijuana establishment shall have the same meaning as set forth in
NRS 453A.116. as may be amended or renumbered.
Editor's Note: Pursuant to City Charter Section 2.090(3), language to be omitted is enclosed in [bold brackets],
and language proposed to be added is underscored.
Ordinance No. 3189
Establish Henderson Municipal Code Chapter 4.115
Page 3
Medical use of mariiuana shall have the same meaning as set forth in NRS
453A.120. as may be amended or renumbered.
Origination fee is a one-time fee that is due and payable prior to issuance of a
new license and is related to the specific operations of a medical mariiuana
establishment as specified in this chapter.
Preliminary finding of suitability for a medical mariiuana establishment means
that the Director makes a preliminary finding that the applicant, including all of
the principals, is suitable for involvement with the operations of a medical
mariiuana establishment. Such finding shall be valid for one vear and is
intended to be provided to the State of Nevada. Department of Health and
Human Services in coniunction with appropriate zoning entitlements for the
desired establishment location.
4.115.020-Application feeEach applicant for anv Medical mariiuana establishment license as identified
in this chapter shall pav to the City at the time of application for preliminary
finding of suitability for a medical mariiuana establishment, a non-refundable
application fee in the amount of $10.000.
4.115.030 - Origination fees.
Origination fees, in addition to the license fees listed in this chapter, are
imposed for the following and are payable prior to issuance of license:
Class I medical mariiuana
establishment
$60,000.00
Class 11 medical mariiuana
establishment
$80,000.00
Class III medical mariiuana
establishment
$100,000.00
Independent testing laboratorv
$15,000.00
4.115.040 - License fees.
Medical mariiuana establishment licenses, are not prorated, are fixed and
established, and must be paid in advance bv all persons receiving such
licenses, respectively as follows:
Editor's Note: Pursuant to City Charter Section 2.090(3), language to be omitted is enclosed in [bold brackets],
and language proposed to be added is underscored.
Ordinance No. 3189
Establish Henderson Municipal Code Chapter 4.115
Page 4
Class 1 medical mariiuana
establishment (Monthly fee)
6% of Gross
Revenue^
Class ll medical mariiuana
establishment (Monthly fee)
6% of Gross
Revenue^
Class III medical mariiuana
establishment (Monthly fee)
6% of Gross
Revenue^
Independent testing
laboratorv (Semiannual fee)
Gross Revenue^
4.115.050 - Indemnification and release agreement feePrior to the issuance of a medical mariiuana establishment license, all persons
receiving such licenses shall execute an indemnification and release
agreement with the City on a fomi approved by the City and pav an
indemnification fee in the amount of $25.000.
^A portion of gross revenue collections will be used for antidrug education
programs to be administered bv the Henderson Police Department.
^ Each Independent testinq laboratory shall pav semiannual license fees in
accordance with HMC 4.05.010.
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Editor's Note: Pursuant to City Charter Section 2.090(3), language to be omitted is enclosed in [bold brackets],
and language proposed to be added is underscored.
Ordinance No. 3189
Establish Henderson Municipal Code Chapter 4.115
Page 5
SECTION 2.
If any section, subsection, sentence, clause, phrase, provision or portion of this
Ordinance, or the application thereof to any person or circumstances, is for any
reason held to be invalid or unconstitutional by the decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining
portions or provisions of this Ordinance or their applicability to distinguishable
situations or circumstances.
SECTION 3.
All ordinances, or parts of ordinances, sections, subsection, phrases, sentences,
clauses or paragraphs contained in the Municipal Code of the City of Henderson,
Nevada, in conflict herewith are repealed and replaced as appropriate.
SECTION 4.
A copy of this Ordinance shall be filed with the office of the City Clerk, and notice
of such filing shall be published once by title in the Review Joumal, a newspaper
having general circulation in the City of Henderson, at least ten (10) days prior to
the adoption of said Ordinance, and following approval shall be published by title
(or in full if the Council by majority vote so orders) together with the names of the
Councilmen voting for or against passage for at least one (1) publication before
the Ordinance shall become effective. This Ordinance is scheduled for
publication on July 4, 2014, in the Review Journal.
Editor's Note: Pursuant to City Charter Section 2.090(3), language to be omitted is enclosed in [bold brackets],
and language proposed to be added is underscored.
Ordinance No. 3189
Establish Henderson Municipal Code Chapter 4.115
Page 6
PASSED, ADOPTED, AND APPROVED THIS 1^^^ DAY OF JULY, 2014.
Andy Hafen,Twayor
ATTEST:
Sabrina Mercadante. MMC. City
ity C
Clerk
The above and foregoing Ordinance was first proposed and read in title to the City Council
on June 17, 2014, which was a Regular Meeting, and referred to a Committee of the following
Councilmen:
"COUNCIL AS A WHOLE"
Thereafter on July 1, 2014, said Committee reported favorably on the Ordinance and
forwarded it to the Regular Meeting with a do-pass recommendation. At the Regular Meeting
of the Henderson City Council held July 1, 2014, the Ordinance was read in title and adopted
by the following roll call vote:
Those voting aye:
Andy Hafen, Mayor
Councilmembers:
Sam Bateman
John F. Marz
Gerri Schroder
Those voting nay:
Those abstaining:
Those absent:
None
None
Debra March
Sabrina Mercadante, MMC, City Clerk
Editor's Note: Pursuant to City Charter Section 2.090(3), language to be omitted is enclosed in [bold brackets],
and language proposed to be added is underscored.