New Article IX, of Chapter 22, Businesses, of the Sallisaw City Code is hereby established by enacting the following sections, to- wit:

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1 ORDINANCE AN ORDINANCE AMENDING CHAPTER 22, BUSINESSES, TO THE SALLISAW CODE OF ORDINANCES, ADOPTING, ADDING AND ENACTING THE FOLLOWING NEW ARTICLE IX, MARIJUANA AND TOBACCO, TO THE SALLISAW CODE OF ORDINANCES; ESTABLISHING AND PROVIDING REGULATIONS THEREOF; PROVIDING FOR PUBLIC NUISANCE; PROVIDING FOR SEVERABILITY AND REPEAL; PROVIDING FOR CODIFICATION; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF SALLISAW, OKLAHOMA. SECTION 1. New Article IX, of Chapter 22, Businesses, of the Sallisaw City Code is hereby established by enacting the following sections, to- wit: CHAPTER 22 ARTICLE IX. Section : Statutes adopted. The provisions of Title 37, Chapter 4, Sections , Prevention of Youth Access to Tobacco Act, of the Oklahoma Statutes, including Section renumbered as 10A O. S , are hereby adopted by reference. Section : Purposes of article. This article is enacted as an exercise of the police power of the city to preserve the public peace, safety, health and good order thereof, and to aid the enforcement of the policy of the state as established by the Prevention of Youth Access to Tobacco Act and to establish and levy annual occupational business license and permit upon all persons for the privilege of operating as a marijuana retailer, seller, grower, packaging, distributor, transporter, researcher and/ or caregiver licensee, within the city. Section : Definitions, Terms and Phrases. For the purpose of this article, all of the definitions, terms and phrases used in this article shall be given the meaning as hereinafter defined: 1. Retail Marijuana Establishment is any retail marijuana establishment licensed by the State of Oklahoma for the retail sale of marijuana. 2. Marijuana ( Cannabis) Processing and Distribution Facility or Wholesale Marijuana Facility or Commercial Marijuana Growing Facility is any establishment licensed by the State of Oklahoma which processes, cultivates, grows, harvests, dries, cures, tests, extracts, stores, distributes, supplies and/or markets marijuana, including but

2 not limited to, milled blends, edibles, concentrates, packaged medicinals, prepared foods, pre- rolls, vape oil cartridges and other products intended for human consumption, for the purpose of selling wholesale to state licensed retail dispensaries or state licensed packagers only. 3. Marijuana Storage Facility is any establishment other than a retail outlet licensed by the State of Oklahoma for the storage of marijuana in bulk volume. 4. Personal Marijuana Growing Facility is any non- commercial establishment which cultivates, grows and/ or harvests one ( 1) or more marijuana plants or seedlings for an individuals own personal use and/ or pleasure. 5. Medical Marijuana is marijuana prescribed by a board- certified licensed physician for medicinal purposes as permitted by law. 6. Licensee means any person who holds a license issued under authority of the State of Oklahoma as seller, grower, packaging, distributor, transporter, research and/ or caregiver. 7. Minor shall mean a person who, in accordance with state law, has not yet attained the age of majority at which consumption of tobacco and/ or vapor products is permitted, except marijuana as may be permitted by law for medicinal purposes. Words in the plural include the singular, and vice versa, and words imparting the masculine gender include the feminine, as well as persons and licensees as defined in this section. Secs : Reserved. Section : Marijuana Establishments, Occupational Business License and Establishment Permit. 1. All operators of retail marijuana establishments, marijuana ( cannabis) processing and distribution facility, wholesale marijuana facility, commercial marijuana growing facility, or marijuana storage facility are required to obtain an occupational business license and marijuana establishment permit from the municipal clerk. 2. A personal marijuana growing facility is required to obtain a marijuana establishment permit for personal medical use from the municipal clerk. 3. The retail marijuana establishment occupational business license and marijuana establishment permit fee shall be six hundred dollars ($ ) per year. The fee shall be used to offset municipal expenses covering costs related to licensing, inspection, administration and enforcement of retail marijuana establishments. 4. The marijuana ( cannabis) processing and distribution facility, wholesale marijuana facility or commercial marijuana growing facility occupational business license and marijuana establishment permit fee shall be fifteen hundred dollars ($ ) per year. The fee shall be used to offset municipal expenses covering costs related to licensing, inspection, administration and enforcement of retail marijuana

3 establishments. 5. The marijuana storage facility occupational business license and marijuana establishment permit fee shall be twenty-five hundred dollars ($ ) per year. The fee shall be used to offset municipal expenses covering costs related to licensing, inspection, administration and enforcement of marijuana establishments. 6. The personal marijuana growing facility ( personal medical use) marijuana establishment permit fee shall be five hundred dollars ($ ) per year. The fee shall be used to offset municipal expenses covering costs related to licensing, inspection, administration and enforcement of marijuana establishments. 7. A marijuana establishment permit shall be granted to any applicant for a retail marijuana establishment, marijuana ( cannabis) processing and distribution facility, wholesale marijuana facility or marijuana storage facility, where the proposed facility location within the city limits shall be located within a C- 2, C- 3, or C-4 commercial zoned area, except no marijuana establishment permit shall be granted for the downtown area particularly zoned as the " fire district" of the City of Sallisaw, Oklahoma. 8. A marijuana establishment permit shall be granted to any applicant for a commercial marijuana growing facility, where the proposed facility location within the city limits shall be located within an I- 1 industrial zoned area; or within an A- 1 agricultural zoned area provided specifically that such agricultural zoned area shall not be adjacent to a residential zoned area, or C- 2, C- 3, or C-4 commercial zoned area, except no marijuana establishment permit shall be granted for the downtown area particularly zoned as the " fire district". 9. A commercial marijuana growing facility must remain locked at all times when not in operation and have an electronic security system. 10. The growing area of any commercial marijuana growing facility, including any lighting, plumbing or electrical components used shall comply with municipal building and fire codes and must be properly ventilated so as not to create humidity, mold or other related problems. 11. A marijuana storage facility must remain locked at all times when not in operation and have an electronic security system. 12. A personal marijuana growing facility( for personal medical use) shall be subject to the following security provisions prior to the granting of a permit: a. Any access or entry point to residential facilities used for marijuana cultivation for personal medical use shall be secured by lock and key or equivalent, at all times except when the residential facility is actively being supervised in person by the permit holder; b. The growing area, including any lighting, plumbing or electrical components used shall comply with municipal building and fire codes and must be properly ventilated so as not to create humidity, mold or other related problems.

4 Lighting shall not exceed 1, 000 watts per light and the use of gas products CO2, butane, etc) or CO2 and ozone generators in the growing area are prohibited; c. The primary use of the residential property in which marijuana is grown shall remain at all times a residence, with legal and functioning cooking, eating, sleeping and sanitation/ bathing facilities with proper ingress and egress. No room shall be used for growing marijuana where such cultivation will impair or prevent the primary uses of cooking, eating, sleeping or sanitation/ bathing; d. If the residence is rented, written consent of the property owner shall be obtained prior to any cultivation commencing. This consent must be evidenced by a signed and notarized statement from the property owner permitting the growth of marijuana in the residence. 13. Failure of a personal marijuana growing facility( for personal medical use) to comply with security provisions as stated herein shall result in revocation of the marijuana establishment permit. 14. A marijuana establishment permit shall not be granted to any applicant for a retail marijuana establishment, marijuana ( cannabis) processing and distribution facility, wholesale marijuana facility, commercial marijuana growing facility or marijuana storage facility where the proposed location would be located within one thousand 1000) feet of a private or public preschool, elementary, secondary, vocational or trade school, college or university. 15. For the distance requirements outlined in this ordinance, the distances described shall be computed by direct measurement in a straight line from the nearest property line of the parcel of and on which the use described in Section is located to the nearest property line of the building or unit in which the proposed retail marijuana establishment would be located. Secs : Reserved. Section : Conditions, Permit Inspections and Other Requirements. 1. Buildings where marijuana is stored or dispensed must be equipped with ventilation/ air filtration systems so that no odors are detectable off premises. 2. In addition to state sales tax, a retail marijuana establishment shall collect all city related sales tax, as applicable or allowed, on all sales. 3. Any violations of this Ordinance shall result in the revocation of the marijuana establishment permit. 4. It is the intent of the City of Sallisaw, Oklahoma that nothing in this ordinance be construed: A. to allow persons to engage in conduct that endangers or causes a public nuisance; B. or to allow the use of marijuana for non- medical purposes;

5 C. or to allow any activity that is otherwise illegal and not permitted by state law. 5. All permits outlined in this ordinance will be subject to inspection by an authorized municipal inspector prior to issuance. 6. The inspection prior to permit decision will occur at a time scheduled and approved by both the applicant and the municipal inspector. 7. The applicant will be required to be present during the inspection. 8. Smoking or using marijuana and/ or marijuana products shall be prohibited on all city property, including but not limited to vehicles, building, parks and other facilities. Secs : Reserved. Section : Public Nuisance. The smell or noxious odor emitted from smoking or consumption of marijuana by a person possessing a valid state issued medical marijuana license shall be treated as a public nuisance. It shall be unlawful for any person or entity to grow marijuana in such a manner that constitutes a public nuisance. A public nuisance may be deemed to exist if growing marijuana produces light, glare, heat, noise, odor or vibration that is detrimental to public health, safety or welfare, or interfere with the reasonable enjoyment of life and property. Secs : Reserved. SECTION 2. Any ordinance inconsistent with the terms and provisions of this ordinance is hereby repealed; provided, however, that such repeal shall be only to the extent of such inconsistency and in all other respects this ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this ordinance. SECTION 3. If, regardless of cause, any section, subsection, paragraph, sentence, phrase, portion or clause of this ordinance is held invalid or determined to be unconstitutional, the remaining sections, subsections, paragraphs, sentences, phrases, portions or clauses shall continue in full force and effect and shall be construed thereafter as being the entire provisions of this ordinance. SECTION 4. The City Clerk is hereby directed to enter and amend the Sallisaw Code of Ordinances by adding new Article IX, of Chapter 22, Businesses, in its appropriate place to the Sallisaw City Code, as authorized and approved by this Ordinance.

6 SECTION 5. WHEREAS, an emergency and immediate necessity exists by reason of the health, safety and protection of the citizens of Sallisaw; therefore, an emergency is hereby declared to exist by reason whereof this Ordinance shall be in full force and effect from and after its passage and approval. PASSED AND APPROVED this 8th day of August, CITY OF SALLISAW, OKLAHOMA ATTEST: JL n.4 jj'( isj DIANNA DAVIS, City Clerk By: ERNIE MARTENS, Mayor SEAL] f 11 L:! I 4 S

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