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HomeMy WebLinkAboutHarvest SLO Application - CompleteCommercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC Commercial Cannabis Business Operators Permit Application Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC 1 G. Related License Information Continued Please attach additional sheets if necessary. Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: West Wendover, Elko County Start Date: 4/11/2018 End Date: N/A Business Name: Harvest of Nevada, LLC Business Type: MME Cultivation Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: West Wendover, Elko County Start Date: 4/11/2018 End Date: N/A Business Name: Harvest of Nevada, LLC Business Type: MME Production Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Newport, Jackson County Start Date: 7/10/2018 End Date: 6/30/2019 Business Name: Natural State Wellness Enterprises Business Type: Medical Cultivation 2 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Lake Havasu City, Mohave County Start Date: 10/6/2018 End Date: 10/5/2019 Business Name: Abedon Saiz, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Scottsdale, Maricopa County Start Date: 8/8/2018 End Date: 8/7/2019 Business Name: Byers Dispensary, Inc. Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Lake Havasu City, Mohave County Start Date: 8/8/18 End Date: 8/7/19 Business Name: High Desert Healing, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Avondale, Maricopa County Start Date: 8/8/2018 End Date: 8/7/2019 Business Name: High Desert Healing, LLC Business Type: Medical - Dispensary 3 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Guadalupe, Maricopa County Start Date: 8/8/2018 End Date: 8/7/2019 Business Name: Nature Med, Inc. Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Glendale, Maricopa County Start Date: 10/6/2018 End Date: 10/5/2019 Business Name: Pahana, Inc. Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Tucson, Pima Start Date: 10/6/2018 End Date: 10/5/2019 Business Name: Patient Care Center 301, Inc. Business Type: Medical - Dispensary 4 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Cottonwood, Yavapai County Start Date: 10/6/2018 End Date: 10/5/2019 Business Name: Sherri Dunn, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Tempe, Maricopa County Start Date: 10/6/2018 End Date: 10/5/2019 Business Name: SVACCHA, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Apache Junction, Maricopa County Start Date: 10/6/2018 End Date: 10/5/2019 Business Name: SVACCHA, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Kingman, Mohave County Start Date: 8/8/2018 End Date: 8/7/2019 Business Name: Verde Dispensary, Inc. Business Type: Medical - Dispensary 5 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Merced Start Date: 9/20/2018 End Date: N/A Business Name: Harvest of Merced Business Type: Recreational & Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Palm Springs, Riverside County Start Date: 8/23/2018 End Date: N/A Business Name: Holdings of Harvest CA, LLC Business Type: Recreational & Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Santa Monica, Los Angeles County Start Date: 12/20/18 End Date: N/A Business Name: Harvest of Santa Monica, LLC Business Type: Medical - Dispensary 6 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Moreno Valley, Riverside County Start Date: 8/20/2018 End Date: N/A Business Name: Harvest of Moreno Valley, LLC Business Type: Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Gainesville, Alachua County Start Date: 9/20/2018 End Date: N/A Business Name: San Felasco Nurseries, Inc. Business Type: Medical Marijuana Treatment Center Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Rockville, Montgomery County Start Date:12/14/2017 End Date: 12/14/2019 Business Name: Harvest of Maryland, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Hancock, Washington Start Date: 8/15/2017 End Date: 8/15/2019 Business Name: Harvest of Maryland Business Type: Medical - Cultivation 7 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Bismarck, Burleigh County Start Date: 9/24/2018 End Date: N/A Business Name: HOFB, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Williston, Williams County Start Date: 11/15/2018 End Date: N/A Business Name: Harvest of Williston, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Athens Start Date: 6/7/2018 End Date: N/A Business Name: Harvest of Ohio, LLC Business Type: Medical - Dispensary 8 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Columbus, Franklin County Start Date: 6/7/2018 End Date: N/A Business Name: Harvest of Ohio, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Beavercreek, Greene County Start Date: 6/7/2018 End Date: N/A Business Name: Harvest of Ohio, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Hamilton Township, Lawrence County Start Date: 11/30/2017 End Date: N/A Business Name: Harvest Grows LLC Business Type: Medical - Cultivation 9 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Reading, Berks County Start Date: 6/29/2017 End Date: N/A Business Name: SMPB Retail, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Shamokin, Northumberland County Start Date: 12/18/2018 End Date: N/A Business Name: Harvest of North Central PA, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Harrisburg, Dauphin County Start Date: 12/18/2018 End Date: N/A Business Name: Harvest of South Central PA, LLC Business Type: Medical - Dispensary 10 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Scranton, Lackawanna Start Date: 12/18/2018 End Date: N/A Business Name: Harvest of Northeast PA, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Reading, Berks County Start Date: 12/18/2018 End Date: N/A Business Name: Harvest of Southeast PA, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Williston, Williams County Start Date: 11/15/2018 End Date: N/A Business Name: Harvest of Williston, LLC Business Type: Medical - Dispensary 11 Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: New Castle, Lawrence County Start Date: 12/18/2018 End Date: N/A Business Name: Harvest of Northwest PA, LLC Business Type: Medical - Dispensary Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: Steven White City or County: Johnstown, Cambria Start Date: 12/18/2018 End Date: N/A Business Name: Harvest of Southwest PA, LLC Business Type: Medical - Dispensary STATE OF NEVADA DEPARTMENT OF TAXATION Web Site: https://tax.nv.gov 1550 College Parkway, Suite 115 Carson City, Nevada 89706-7937 Phone: (775) 684-2000 Fax: (775) 684-2020 RENO OFFICE 4600 Kietzke Lane Building L, Suite 235 Reno, Nevada 89502 Phone: (775) 687-9999 Fax: (775) 688-1303 BRIAN SANDOVAL Governor JAMES DEVOLLD Chair, Nevada Tax Commission WILLIAM D. ANDERSON Executive Director LAS VEGAS OFFICE Grant Sawyer Office Building, Suite1300 555 E. Washington Avenue Las Vegas, Nevada 89101 Phone: (702) 486-2300 Fax: (702) 486-2373 HENDERSON OFFICE 2550 Paseo Verde Parkway, Suite 180 Henderson, Nevada 89074 Phone: (702) 486-2300 Fax: (702) 486-3377 April 11, 2018 Steve White Harvest of Nevada, LLC 627 S. 48th Street, Suite 100 Tempe, AZ 82581 MME ID: C205 Dear Steve White: The State of Nevada Department of Taxation, Marijuana Enforcement Division has completed the application evaluation process for medical marijuana establishment (MME) registration certificates. This letter is to inform you of the intent to approve your application for an MME cultivation registration certificate at your proposed location, 450 N. Industrial Way, West Wendover, NV 89883, within the West Wendover local jurisdiction. Please note this letter only applies to this establishment. If you submitted multiple applications, you will receive a separate notification letter for each one. Payment of initial registration fees is due not later than 30 days after the date of this letter. Please submit your payment according to the instructions on the enclosed invoice. Once you have paid the required registration fees, you will be issued your provisional registration certificate containing your 20-digit registration number. Pursuant to NRS 453A.326, MME registration certificates are considered provisional until the establishment is in compliance with all applicable local and state government requirements. Final approval of the registration certificate will occur when the applicant has: 1. Paid the applicable fees for the issuance of an MME registration certificate. 2. Provided documentation to the Department issued by the local jurisdiction to the establishment authorizing occupancy of the building as an MME, such as a certificate of occupancy, a special use permit or a conditional use permit. 3. Provided documentation to the Department regarding successful inspections issued from fire, building, health and air quality. 4. Provided documentation to the Department of successful pre-opening inspections conducted by the Department. 5. Provided complete and verified agent card information to the Department for all owners, officers, board members and employees of the MME. 6. Provided documentation the establishment has a current, valid state business license. 7. Provided documentation the establishment has obtained a local business license and zoning permits as applicable. NAC 453A.324 allows the Department to revoke a registration certificate if the MME is not operational within 18 months after the date of this letter. Feel free to email questions to the Department to marijuana@tax.state.nv.us. Sincerely, Jorge Pupo, Deputy Executive Director Nevada Department of Taxation, Marijuana Enforcement Division STATE OF NEVADA DEPARTMENT OF TAXATION Web Site: https://tax.nv.gov 1550 College Parkway, Suite 115 Carson City, Nevada 89706-7937 Phone: (775) 684-2000 Fax: (775) 684-2020 RENO OFFICE 4600 Kietzke Lane Building L, Suite 235 Reno, Nevada 89502 Phone: (775) 687-9999 Fax: (775) 688-1303 BRIAN SANDOVAL Governor JAMES DEVOLLD Chair, Nevada Tax Commission WILLIAM D. ANDERSON Executive Director LAS VEGAS OFFICE Grant Sawyer Office Building, Suite1300 555 E. Washington Avenue Las Vegas, Nevada 89101 Phone: (702) 486-2300 Fax: (702) 486-2373 HENDERSON OFFICE 2550 Paseo Verde Parkway, Suite 180 Henderson, Nevada 89074 Phone: (702) 486-2300 Fax: (702) 486-3377 April 11, 2018 Steve White Harvest of Nevada, LLC 627 S. 48th Street, Suite 100 Tempe, AZ 82581 MME ID: P136 Dear Steve White: The State of Nevada Department of Taxation, Marijuana Enforcement Division has completed the application evaluation process for medical marijuana establishment (MME) registration certificates. This letter is to inform you of the intent to approve your application for an MME production registration certificate at your proposed location, 450 N. Industrial Way, West Wendover, NV 89883, within the West Wendover local jurisdiction. Please note this letter only applies to this establishment. If you submitted multiple applications, you will receive a separate notification letter for each one. Payment of initial registration fees is due not later than 30 days after the date of this letter. Please submit your payment according to the instructions on the enclosed invoice. Once you have paid the required registration fees, you will be issued your provisional registration certificate containing your 20-digit registration number. Pursuant to NRS 453A.326, MME registration certificates are considered provisional until the establishment is in compliance with all applicable local and state government requirements. Final approval of the registration certificate will occur when the applicant has: 1. Paid the applicable fees for the issuance of an MME registration certificate. 2. Provided documentation to the Department issued by the local jurisdiction to the establishment authorizing occupancy of the building as an MME, such as a certificate of occupancy, a special use permit or a conditional use permit. 3. Provided documentation to the Department regarding successful inspections issued from fire, building, health and air quality. 4. Provided documentation to the Department of successful pre-opening inspections conducted by the Department. 5. Provided complete and verified agent card information to the Department for all owners, officers, board members and employees of the MME. 6. Provided documentation the establishment has a current, valid state business license. 7. Provided documentation the establishment has obtained a local business license and zoning permits as applicable. NAC 453A.324 allows the Department to revoke a registration certificate if the MME is not operational within 18 months after the date of this letter. Feel free to email questions to the Department to marijuana@tax.state.nv.us. Sincerely, Jorge Pupo, Deputy Executive Director Nevada Department of Taxation, Marijuana Enforcement Division Bureau of Cannabis Control 833)768-5880 Medicinal - Retailer Temporary License LICENSE NO: C10-18-0000142-TEMP LEGAL BUSINESS NAME: HARVEST OF NAPA, INC PREMISE: 2441 2ND ST NAPA, CA 94559 VALID: 12/10/2018 EXPIRES: 4/9/2019 Non-Transferable Prominently display this license as required by Title 16 CCR 5039 City of Palm Springs Steve White Holdings of Harvest CA , LLC 627 S. 481h Street , Suite 100 Tempe , Arizona 8528 1 Office of the City Attorney 3200 E. Tahquitz Canyon Way • Pa lm Springs, California 92262 Tel: 760.323 .8205 • Fax: 760.322.8332 • TDD 760.86 4 .9527 • www.palmspringsca.gov VIA HAND DELIVERY August 21 ,2018 RE: Cannabis Related Businesses and Activities Application C-2018-027 Dear Mr . White : Congratulations on the City 's issuance of your cannabis related businesses and activities permit , and thank you for choosing to do business in the City of Palm Springs . As you know , Ordinance 1933 allowed you to secure this permit. However , you may not commence operations until you have secured all necessary City approvals. Further , your operations pursuant to this permit are only lawful to the extent that they are consistent with all applicable State law. The City has not yet issued the approvals necessary for you to proceed with operations . You must obtain all required Building and Planning approvals and inspections . This permit is issued in an effort to help you proceed with your State application , and does not relieve you of your duty to comply with all terms and conditions determined by the City. Further , as your permit indicates , you may not operate the permitted business , regardless of the permit and/or any business license you may secure , until and unless the City issues you a change of use permit. With the issuance of your license for medical cannabis and adult use dispensary , you r operations are subject to the following conditions pursuant to Palm Springs Municipal Code PSMC) Sections 5.45 .095 and 5.55.095 : The dispensary must and will comply with all the requ irements of the State and City to operate ; The dispensary complies with the locational requirements of the Zoning Ordinance ; The dispensary will not result in significant unavo idable impacts on the environment ; The dispensary includes adequate measures that minimize nuisances to the immediate neighborhood and community including m inimizing the detection of odor from offsite , loitering , adequate security measures and not exceeding the Land Use Permit's limits on hours of operation ; Post Office Box 2743 • Palm Springs, California 92263-27 43 Holdings of Harvest CA , LLC August 21 , 2018 Page 2 The dispensary will provide adequate measures that address the federal enforcement priorities for cannabis activities ; and The dispensary shall allow access to the dispensary facilities and records if requested by the City and shall pay for an annual inspection in an amount determined by City Council Resolution. Pursuant to Resolution No . 24467 , adopted by the City Council on July 11 , 2018, you must make payment of your cannabis related business and activities permit application fee of four thousand dollars ($4 ,000). You must make payment of the first half(%) of this application fee at the City's City Clerk public window, at or before the close of business on Monday, September 10 , 2018 , and the second half (%) of the application fee at or before the close of business on Thursday , October 11 , 2018. Further , your company shall indemnify , defend and hold the City harmless from any and all claims and proceedings arising from or related to its approval of this permit , and pertaining to any damage to property or persons stemming from the cannabis business activity . Finally, you must provide to the City within thirty (30) days of issuance of your City permit, your seller's permit number. If you have any questions regarding the terms and provisions of the issuance of your permit , please feel free to contact me. THE CITY OF PALM SPRINGS EDWARD Z . KOTKIN City Attorney EZK:vg CITY OF PALM SPRINGS CANNABIS RELATED BUSINESSES AND ACTIVITIES PERMIT 3200 E T AHQUITZ CANYON WAY , PALM SPRINGS, CALIFORNIA 92262 (76 0 ) 323 -8 239 TIDS PERMIT CERTIFIES THAT: HOLDINGS OF HARVEST, LLC Project Address: 312 N. Palm Canyon Drive Palm Springs , California 92262 Phone : (480) 417-6781 Has been granted a PERMIT to operate the following business/es under City Ordinance No . 1933, otherwise known as the CAN NAB I RELATED AND BUSINESSES AND ACTIVITIES ORDINANCE of the City of Palm Springs, subject to the provisions of other pertinen laws, ordinances and related administrative regulations. 5.45 0 095/5 0 55 0 095 Dispensary 0 5.45.096/5.55.096 Cultivation 0 Type 1 Specialty Outdoor 0 5.45.097/5.55 .097 Manufacturing 0 Type 1A Specialty Indoor 0 5.45 0 098/5 0 55 0 098 Testing Facility D Type 18 Specialty Mixed Light D 5.45 .099/5 .55.099 Transportation and Distribution D Type 2 Small Outdoor 0 Type 2A Small Indoor 0 Type 3 Outdoor 0 Type 3A Indoor 0 Type 38 Mixed Light 0 Type 4 Nursery Description: Adult Recreational and Commercial Medical Dispensary. Approved for and by the authority of the City Manager of the City of Palm Springs , this _a3_ day of August , 2018. Application Case No .: C-2018-027 By a:.:;:>-7~~ David H. Ready, Esq., Ph.D., City Manager Retail Evaluation Criteria Merit Criteria 1.0 - Community Benefit Community Benefit (A): Applicant demonstrates a commitment to City through local hiring and community support. Select all that apply within each category and total score. (Up to 20 Points – Deviation Threshold 6 Points) Possible points Applicant score 1.1A Over 90% of employees will be San Luis Obispo County residents. (10 points) 10 or 60% - 90% of employees will be San Luis Obispo County residents. (5 points) 1.2A Over 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from businesses within 90 miles. (10 points) 10 or 50% - 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from local businesses within 90 miles. (5 points) Total Community Benefit (A) 20 Community Benefit (B): Continued support of community programs in San Luis Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to youth programs). (Up to 10 Points - Deviation Threshold 3 points) Possible points Applicant score 1.1B Providing over 20 hours per month of community support. (5 points) 5 or Providing over 10-20 hours per month of community support. (2 points) 1.2B Provide over $1,000 per month for community support. (5 points) 5 or Provide up to $1,000 per month for community support. (2 points) 1.3B Applicant can demonstrate a history of supporting local community programs. (5 points) 5 Total Community Benefit (B) 15 Total Merit Criteria 1.0 35 10 20 5 5 5 15 35 10 Merit Criteria 2.0 - Experience Record of compliant current or previous business operations: Applicant has previous record of operating a compliant cannabis operation (including medical). A compliant operation is defined as having a substantially compliant record (may have some minor resolved/corrected violations) without a documented history of unresolved local or state level violations relating, but not limited to: business code, public safety, environmental impacts, employment, and financial payments. (Up to 30 Points – Deviation Threshold 9 Points) Possible points Applicant score 2.1 91% to 100% of the primary principals have operated a local compliant cannabis operation for 5 or more years. 35 or 81% to 90% of the primary principals have operated a local compliant cannabis operation for 5 or more years. 30 or 71% to 80% of the primary principals have operated a local compliant cannabis operation for 5 or more years. 25 or 61% to 70% of the primary principals have operated a local compliant cannabis operation for 5 or more years. 20 or 51% to 60% of the primary principals have operated a local compliant commercial cannabis operation for 5 or more years. 15 2.2 10-50% of the primary principals operated a compliant cannabis operation outside of SLO County for 5 or more years. 10 or 10-50% of the primary principals operated a compliant cannabis operation outside of SLO County for less than 5 years. 5 Total Merit Criteria 2.0 35 35 35 Merit Criteria 3.0 - Equity and Labor Applicant commits to equity ownership and competitive compensation in comparison to other mainstream commercial businesses. Applicants commitment will be confirmed during annual permit renewal process. Select all that apply and total score. (Up to 20 Points – Deviation Threshold 9 Points) Possible points Applicant score 3.1 Applicant includes 3 or more principals with 2% equity or higher who have earned at or below the median household income at the time of application. (8 points) 8 or Applicant includes 1 or 2 primary principals who have earned at or below the median household income at the time of application. (4 points) 3.2 Business will have an average pay rate for entry and mid-level positions of at least 40% more than the median local income for similar positions in other mainstream businesses. (8 points) 8 or Business will have an average pay rate for entry and mid-level positions of at least 20% more than the median local income for similar positions in other mainstream businesses. (4 points) 3.3 Base wages of employees exceed the minimum wage by at least $3.00/hr. 2 3.4 Business will allow "labor peace agreement" at 20 or more non-management employees. 2 Total Merit Criteria 3.0 20 8 8 2 2 20 Merit Criteria 4.0 - Messaging 4.1 Applicant commits to responsible use messaging practices. Select all that apply and total score. (Up to 10 Points – Deviation Threshold 3 Points) Possible points Applicant score 4.2 Business articulates strategy to keep cannabis from being diverted to minors including advertising that is appropriately targeted to adult audiences. 1-5 4.3 Business promotes responsible use including messaging on packaging, offering lower dose THC product options, offering to track use via "user determined quotas", posting information on cannabis use disorder and cautions re: development of the adolescent brain. 1-5 Total Merit Criteria 4.0 10 Merit Criteria 5.0 - Medical Retail Commitment Medical Retail Commitment (up to 10 points) Possible points Applicant score 5.1 Applicant commits to provide retail medical cannabis products to consumers. 10 Total Merit Criteria 5.0 10 5 5 10 10 10 Merit Criteria 6.0 - Property Control Control of business location: Applicant demonstrates control of a site to ensure a successful and timely transition from being awarded a license to opening the business. Incomplete purchase or lease agreements do not constitute site control. Up to 10 Points – Deviation Threshold 3 Points) Possible points Applicant score Choose one: 6.1 Majority ownership in site property. 10 6.2 Minority ownership in site property. 8 6.3 10+ years future lease of site property. 8 6.4 5-10 years future lease of site property. 5 6.5 2-5 years future lease of site property. 3 6.6 Less than 2 years future lease of site property. 1 Total Merit Criteria 6.0 10 Merit Criteria 7.0 - Financial Investment Financial Investment: Applicant has plans and capital to support a vibrant business within the City. (Up to 25 Points – Deviation Threshold 3 Points) Possible points Applicant score 7.1 Applicant demonstrates financial capacity to capitalize, start up, and sustain business operations. 1-10 7.2 Applicant commits to major improvements, including façade rehabilitation, building expansion, site improvements, removing visual blight, and/or other investments in an underutilized/underdeveloped site that has been zoned for commercial use for a commercial cannabis facility. 1-5 7.3 The proposed cannabis business site can accommodate the required number of parking spaces and safe and convenient access for customers/employees. 1-5 Total Merit Criteria 7.0 20 10 10 10 5 5 20 Totals Total Merit Criteria Points Available 140 Total Merit Criteria Points Awarded Total % 140 100% Business Operations Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC Business Operations Plan: Business Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC TABLE OF CONTENTS Executive Summary ............................................................................................................. 4 Serving Our Patients and Customers ............................................................................... 4 Serving Our Community ................................................................................................... 5 Serving Our Employees and Their Families ...................................................................... 5 Proposed Operations ....................................................................................................... 5 Harvest of SLO: A Local Enterprise ..................................................................................... 6 Harvest of SLO Principals .................................................................................................... 7 Jason Kallen, Director of Community Outreach/Owner (Primary Principal)...................... 7 Steve White, Chief Executive Officer/Owner .................................................................... 9 Frances Esters, Retail Facility Manager/Principal ........................................................... 11 Courtney Guluarte, Product Acquisition/Principal .......................................................... 12 Harvest National Team ...................................................................................................... 13 Steve Gutterman, President ........................................................................................... 13 Michele Trzuskowski, Vice President of Retail Operations ............................................. 14 Leo Jaschke, Chief Financial Officer .............................................................................. 15 Timothy Buskirk, Safety and Security Compliance Director ........................................... 17 Sean Berberian, General Counsel .................................................................................. 18 Siobahn Carragher, Director of Human Resources ........................................................ 19 Liesl Sicz, Talent Development manager ....................................................................... 20 Dr. William Troutt, Director of Cannabis Education ........................................................ 21 Paul Nowak, Vice President of Design and Construction ............................................... 23 Hours of Operation ............................................................................................................ 24 Display of Permits .............................................................................................................. 24 Day-To-Day Operations ..................................................................................................... 24 Retail Storefront Day-To-Day Operations ....................................................................... 25 Retail Delivery Experience .............................................................................................. 27 Retail Delivery Day-To-Day Operations .......................................................................... 28 Quality Control Procedures................................................................................................ 34 Quality Control in Retail Operations ............................................................................... 34 Facility Requirements ..................................................................................................... 35 Compliance with Local and State Law ............................................................................... 39 1 Regulatory Compliance .................................................................................................. 41 Cannabis Tracking to Prevent Diversion ............................................................................ 46 Basic Inventory Responsibilities ..................................................................................... 47 Inventory Tracking ......................................................................................................... 47 Facility-Wide Loss of Access to Inventory Tracking Systems for Retail & Delivery Operations ..................................................................................................................... 54 Inventory Management .................................................................................................. 55 Recordkeeping ............................................................................................................... 65 Protected Information..................................................................................................... 71 Proposed retail facility ........................................................................................................ 71 Schedule for Beginning Operation ..................................................................................... 74 2 Description of Criteria Page # Section 1. Community Benefit 1.1 A) Over 90% of employees will be San Luis Obispo County residents 5, 6 Section 2: Experience 2.1) 91% to 100% of the primary principals have operated a local compliant cannabis operation for 5 or more years 4, 7 Section 4: Messaging 4.1) Applicant commits to responsible use messaging practices 33 Section 5: Medical Retail Commitment 5.1) Applicant commits to provide retail medical cannabis products to consumers 5 Section 6: Property Control 6.1) Majority ownership in site property 72 Section 7: Financial Investment 7.2) Applicant commits to major improvements, including façade rehabilitation, building expansion, site improvements, removing visual blight, and/or other investments in an underutilized /underdeveloped site that has been zoned for commercial use for a cannabis facility 73, 75 7.3) The proposed cannabis site can accommodate the required number of parking spaces and safe and convenient access for customers/employees 73 3 EXECUTIVE SUMMARY Harvest Inc. is a national enterprise that has managed licensure and permitting of over one hundred ten (110) facilities in ten (10) states. The Harvest national team has overseen startup and operations for thirty-three (33) cannabis facilities, including twenty-four (24) retail store fronts. This gives us the unique ability to understand all aspects of the cannabis industry from seed-to-sale, as well the complex and rapidly changing regulatory environment that is crucial to the success of our operations. Harvest of San Luis Obispo LLC, dba Harvest (“Harvest of SLO”) is grateful for the opportunity to expand its cannabis operations and provide high -quality, fully compliant cannabis to the citizens of San Luis Obispo (“SLO”), California. We are excited to share the Harvest national team’s vast knowledge with the local enterprise that will be Harvest of SLO. While this experience is valuable, we at Harvest also understand that each locality in which we operate is unique and is best served by ensuring individuals that are the fabric of the community are the core operators. Harvest of SLO will be a locally managed enterprise with owner and Director of Community Relations, Jason Kellan, residing in SLO. As a 91% owner of Harvest of SLO, he is the only Primary Principal. As a local enterprise, Harvest of SLO is proud to say that 100% of its primary principals have operated a compliant cannabis operation for over five (5) years in SLO County. As part of our local hiring practices, we anticipate hiring the Harvest of SLO staff directly from SLO. Over 90% of Harvest of SLO employees will be SLO residents. While the Harvest brand is rapidly expanding, we remain focused on ensuring that our patients, customers, and the community we serve always come first. We aim to open a facility in SLO where safety, education, and quality are paramount. At Harvest, we pride ourselves on being regarded as a respectable leader in the industry and our communities and setting the bar for best practices. We want to be good neighbors in this community and know the people of SLO will come to appreciate our commitment to providing the highest quality products, our innovative services, and our philanthropic spirit . Harvest is a mission-driven company. Our guiding principles are: Serve Our Patients and Customers Serve Our Community Serve Our Employees and Their Families. Serving Our Patients and Customers The Harvest national team’s experience operating fourteen (14) active dispensaries has allowed us to create a wholistic and innovative experience for our patients and customers. We will ensure this same experience is implemented at Harvest of SLO by providing superior care, education, and products to our customers. Our proposed Commercial Cannabis Facility is carefully and thoughtfully designed with their wellness first in mind. 4 At Harvest we provide transformative products people can trust. As a business with a long and successful history of operations, we uniquely understand the quality and diversity of products it takes to serve a population like SLO’s. Our carefully curated cannabis goods will be offered at an affordable price point for our patients and customers. Serving Our Community Our company understands that operating a cannabis business is an opportunity to be part of the broader community. Therefore, our services do not stop at the door of our retail storefront. We are committed to giving back to the community that allows us to serve vulnerable patients and other SLO consumers. We have put in the work and passion necessary to ensure we are a valuable civic partner to every local government we work with. How we intend to engage with SLO is further discussed in the Community Benefits Plan of this application. Serving Our Employees and Their Families A good-paying job is the cornerstone of the American Dream. Harvest is proud to offer all employees more than just a living wage as well as robust healthcare benefits because we recognize that a career can lift a family out of poverty. We are excited to bring multiple full - time, good-paying jobs to the community of SLO. More than 90% of Harvest of SLO’s employees will be local residents. As job creators, we have a moral obligation to ensure that all of our employees can provide for their families and have confidence in their caree rs. In short, we view our employees as kin and want them to earn enough to support themselves and their loved ones. Full details regarding Harvest’s pay and benefits standards can be found in our Community Benefits Plan. Proposed Operation s Harvest’s national team has unparalleled experience in developing and implementing cannabis operational procedures. Our leaders have extensive knowledge regarding all aspects of the retail sale cannabis, as well as a comprehensive understanding of regulato ry compliance. Additionally, we have brought on local leaders from the SLO community with extensive cannabis and a dedication to provide their fellow residents with a best -in-class experience. This ensures that Harvest of SLO will implement industry best practices and set the bar for regulated California cannabis businesses with its SLO Commercial Cannabis Facility. Harvest of SLO’s proposed operation in SLO is a cannabis Adult-use and Medical Retail Storefront with Delivery. All commercial cannabis activity will occur within the same building. At the Retail Facility, cannabis and cannabis products will be offered for sale to patients and consumers over the age of twenty-one (21). Retail Delivery to patients and consumers over the age of twenty-one (21) will also be offered. Harvest intends to obtain a “Type 10” Retail storefront. 5 In addition to ensuring that Harvest’s Commercial Cannabis Facility meets and exceeds the requirements within all applicable regulations and ordinances, as well as implementing b est practices learned from Harvest’s operations in other states, we will develop responsible and socially conscious business practices, including but not limited to: Creating fully compliant and efficient operational policies and procedures. Ensuring retail practices achieve an optimum balance between economic, environmental, and social goals. Ensuring employment practices promote equal employment opportunity, fair compensation, and diversity. Ensuring all employees will be fully trained to perform their duties as assigned in a safe and efficient manner. Ensuring the facility is suitably sized, equipped, organized, and maintained to support the safe, clean retail sale of cannabis and cannabis products. Implementing energy saving practices throughout the Facility. Implementing a thorough workplace safety program. Establishing comprehensive quality assurance measures to ensure cannabis and cannabis products maintain strength, quality, and purity as represented. Establishing comprehensive security and inventory management measures and procedures to prevent and detect diversion, loss, or theft of cannabis and cannabis products. Ensuring the care, quality, and safekeeping of cannabis goods from acquisition to sale. Ensuring adequate security measures , building security, and cannabis security are implemented. The success of our Commercial Cannabis Facility will be measured by the positive impact we make in lives of our patrons, our communities, and our employees. We hope you will find this application enlightening and reflective of our commitment to the people of SLO, California. HARVEST OF SLO : A LOCAL ENTERPRISE As part of our hiring practices, we anticipate hiring the Harvest of SLO staff directly from SLO. Over 90% of Harvest of SLO employees will be SLO residents. The Harvest national team’s objective is to provide opportunities for local residents to work in a safe, professional environment and teach them the tools they need to maintain a reputable and profitable business. 6 All staff will be provided with educational documents upon hiring and will be continually trained and monitored during the first year of operation by the Harvest national team. Additional training and consultation services will be provided in perpetuity, as needed. Staff will also be highly trained in compliance with all applicable laws and regulations . HARVEST OF SLO PRINCIPALS The Harvest of SLO team will be led by SLO residents and owners Jason Kallen, Frances Esters, and Courtney Galuarte. These three (3) trailblazers are active members of the community with years of community engagement and cannabis experience. Jason has his pulse on the neighborhood and knows that the stellar Harvest team will be an excellent steward in this burgeoning industry, and perhaps most importantly, will be responsive to the needs of the area. The unsurpassed caliber of the Harvest national team, along with the team’s practical, real-world experiences of operating in other highly regulated state cannabis markets, will enable Harvest of SLO to provide an ample number and an unmatched quality of services in the proposed Commercial Cannabis Business . Jason Kallen, Director of Community Outreach/Owner (Primary Principal) Jason Kallen is a primary principal of Harvest of SLO and will serve as the Director of Community Outreach. Jason is a local SLO community member that has operated a compliant cannabis operation over five years in SLO county and as a 91% owner, he is the only primary principal. Jason has over 20 years of cannabis experience and has spent his cannabis career committed to compliantly producing best-in-class products and advocating for consumer and patient access as a leader of the NORML organization. Born in Burbank, Jason is a proud California native. After graduating h igh school in 1994, Jason began cultivating outdoors in Shadow Hills, at the base of the Verdugo Mountains. It was there that his passion for growing cannabis began. In 1995, Jason returned to Sun Valley to master indoor cultivation. The quality of his product made him a well-known cultivator and distributor in the Los Angeles area, where he provided products to Sun Valley Caregivers and The Magic Castle Caregivers. Jason began his compliant cannabis operations in SLO County in 2012 and has operated over four such businesses from start to present. Jason first moved to Paso Robles in SLO County in 2012 to pursue cannabis manufacturing. (See attached lease on Pg. 80) While continuing his cultivation operations, Jason purchased his first rosin press, allowing him to convert his cannabis into a concentrate. (See attached Rosin Press invoice on Pg. 89). To ensure operational compliance and quality control, Jason began having both his cultivated and manufactured products tested in 2011 by WercShop, one of the first cannabis testing facilities in Southern California. (See attached WercShop testing receipt and product testing labels on Pg. 90) In 2014, Jason further legitimized his business by filing the corporate documents for his growing brand, City Boy Farms. (See attached corporate documents on Pg. 91) City Boy 7 Farms effectively operated as a non-profit, with Jason selling product near cost, taking a modest salary and reinvesting the remaining income back into City Boy Farms’ existing and future businesses in the service of California patients. (See attached Seller’s Permit on Pg. 95) In an effort to ensure that patients without access to transportation would not be without access to medicine Jason started and operated a licensed, compliant cannabis delivery service in Pismo Beach between 2016 and 2017. (See attached Tax Certificate on Pg. 96) In 2018, he began another delivery business in Paso Robles. (See attached Business License of Pg. 97) In January 2017 Jason expanded his cultivation and manufacturing activities and moved into a 3,500 sq. ft warehouse in SLO County. (See attached lease on Pg. 98) As a recognized and reputable leader in the industry, Jason took Mayor Heidi Harmon and four county supervisors, including John Peschong, Debbi Arnold, Lynn Compton and Adam Hill, on a tour of this facility at their request, so that they could get a sense of how a compliant operation is run. In the near future Jason hopes to begin a distribution operation at this location and has applied for the requisite license to such activity, ensuring he can provide his quality product to dispensaries throughout the SLO County area. (See attached Distribution Business License Application on Pg. 105). Currently, Jason is in the county conditional use permit process for a cultivation and manufacturing site on a 25-acre piece of agricultural property in Templeton. There, he plans to acquire licenses for three (3) acres of outdoor cultivation, 22,000 sq. ft of mixed light cultivation, non-volatile extraction and retail delivery. Eventually the site will also include a 100,000 sq. ft nursery and distribution. Jason also has a Certificate of Cannabis Cultivation Registration from SLO County, authorizing the cultivation of up to 1,000 plants covering 20,000 sq. ft of canopy. (See attached Certificate of Registration on Pg. 107) Throughout conducting and expanding his business operations, Jason remained committed to being a voice for the local cannabis community to help educate and inform local governments on what is needed to create proper regulations that operate in the best interest and safety of citizens and businesses. Jason served as an Advisory Board member of Monterey County NORML chapter for over three (3) years. Inspired by the tangible change he helped to facilitate, he founded the SLO NORML chapter, a national non-profit organization for the reform of marijuana laws and has served as the Executive Director since its inception in 2016. As the Executive Director, Jason embodies the SLO NORML chapter’s mission statement: “Move public opinion sufficiently to legalize the responsible use of marijuana by adults, and to serve as an advocate for consumers to assure they have access to high quality marijuana that is safe, convenient and affordable.” Jason continues to demonstrate his dedication to advocacy and ambition to make positive chance by participating in local radio shows like the AM radio Nature’s Neighbor discussing the future impacts of cannabis and its compliant use in SLO. 8 A constant force in in education and compliance, just lasts year Jason started Thrive Consulting, Inc., a team of industry professionals who navigate the road to compliance while building lasting relationships to guide thriving cannabis businesses. Jason is excited to have the opportunity to bring jobs and good health to the community he loves with Harvest of SLO. Through leading by example, Jason is showing the community what compliant operations should look like. With his years of first-hand experience, Jason will be an excellent liaison between our business and the community in his capacity as Director of Community Outreach, able to accurately and effectively discuss complex topics with industry professionals and neighborhood newcomers alike. Steve White, Chief Executive Officer/Owner Steve White, Chief Executive Officer and Owner of Harvest, is a supremely qualified individual whose entrepreneurial spirit has resulted in the founding of several successful businesses across disciplines. Steve has the fortitude to overcome the difficulties inherent in establishing a new venture, as well as the foresight and acumen to successfully plan for and imp lement continued growth and expansion. Through years of experience operating one of the most successful medical cannabis operations in the country, Steve brings the necessary insight to oversee an educational and service-oriented Commercial Cannabis Business in SLO, California. Steve graduated from Washington and Lee School of Law in 1999. After graduation, he practiced business litigation and business, administrative, and regulatory law for several national law firms. In 2005 he founded his own business litigation law firm, White Berberian, and through twelve (12) years of hard work built his practice, garnering experience across a variety of industries from engineering to medical, all while facilitating compliance with heavily regulated structures. This dedication earned his firm an AV rating, the highest possible for legal skill and ethics. Steve founded Harvest in 2011. Beginning with a single dispensary in Tempe, Arizona, over the past seven (7) years Harvest has grown into one of the largest cannabis co mpanies in the country. Cumulatively, their facilities have been operating for over eighty (80) years, requiring extensive and consistent compliance with multiple state -regulated cannabis industries and dozens of local government agencies. Under Steve’s direction, Harvest’s dispensaries have won several awards, including seven (7) Best Dispensary awards from four (4) independent organizations. In 2013, Steve also won an Advocacy Excellence award for his work supporting families’ rights to use medical cannab is to treat their epileptic children. In addition to overseeing medical cannabis license acquisition, facility start -up and ongoing operations, and providing guidance on organizational direction and strategy, Steve has navigated many state- and county-level regulatory audits, including, to date: Fifteen (15) county building safety certificate of occupancy inspections; 9 Ten (10) county health department inspections; Twenty-one (21) state department of health services inspections; and Twenty (20) certified financial audits. Harvest is an industry leader, and Steve has been instrumental in exceeding and maintaining compliance with cannabis industry best practices. At Harvest’s existing facilities, Americans for Safe Access (“ASA”) were invited to inspect both the physical facilities themselves as well as the protocols utilized to produce medical cannabis and medical cannabis products. The ASA is the nation’s largest organization of scientists, medical professionals, and customers promoting safe and legal access to cannabis for therapeutic use and research, and whose standards are considered to be among the most stringent in the industry, requiring operational reviews, announced annual inspections, and periodic unannounced site visits. Harvest’s employee training, security, sanitation and hygiene, product testing, packaging and labeling, inventory control, recordkeeping, and disposal protocols were all validated by ASA’s standards. Harvest also earned the ASA’s industry-leading Patient Focused Certifications (“PFC”) for Cultivation, Manufacturing, and Distribution, one of the only cannabis companies in the country to meet the stringent standards. After opening Harvest’s first dispensary, Steve worked the front lines for several months fulfilling orders, performing reception duties, and consulting with patients. Through those consultations, he quickly learned that he had the ability to help shape a company that gave people control over an aspect of their life where they previously had very little – their health and wellness. This realization lead Steve to instill a culture of education and empowerment at Harvest in order to provide customers not only with much needed products, but resources and support as well. To that end, Harvest hosts monthly support group meetings for individuals suffering from epilepsy, chronic pain, cancer, and PTSD. Harvest has also devoted considerable resources to building relationships with and providing support to local community organizations, working closely with the Epilepsy Foundation to provide educational information and lectures on the use of cannabis for treating seizure disorders, Quality Connections to employ individuals with special needs, and Help Me PTSD to host workshops and support group meetings. Under Steve’s direction, Harvest has also engaged in a number of community involvement and outreach activities, including the donation of over $500,000 to local charitable organizations (e.g., Arizona and Nevada Epilepsy Foundations, Climb to Conquer Cancer, Justa Center, Ryan House), veterans, seniors, and customers in need. Finally, Steve also serves on the board of directors for Harvesting Hope, a 501(c)(3) non - profit organization dedicated to improving quality of life for young children suffering from seizure disorders. In 2014, two parents approached Steve to discuss their son, who was suffering from seizures. The son’s physician had recommended medical cannabis, and the parents were looking for a consistent supply of cannabis high in cannabidiol (“CBD”) and for additional support and educational services. 10 Inspired by this family, and after learning that there were many more families like them, Steve helped create Harvesting Hope, which to date has raised and distributed nearly $40,000 and has provided services for over one hundred (100) families and their children. These services include monthly support group meetings; guest speakers, including neurologists, nutritionists, therapists, and legal advisors; free medical advice and consultation provided by Dr. Troutt, who serves as the organization’s Director of Cannabis Education; and financial assistance to help families bear the cost of cannabis treatment. Steve will take the same ethos learned over the years of operating Harvest and Harvesting Hope to ensure its SLO operation continues Harvest’s mission of providing compliant, consistent, quality cannabis as well as resources and services for the neighboring community. Frances Esters, Retail Facility Manager/Principal Frances Esters, Retail Facility Manager and Principal of Harvest, is an experienced cannabis industry professional with a background in retail sales and consumer goods. A SLO County resident, Ms. Esters will bring invaluable expertise and point of view to our fac ility. Ms. Esters has the distinction of serving as an original team member at Harborside Heath Center in San Jose, the locality’s the very first medical cannabis dispensary to open. Working in that face-paced and constantly shifting regulatory environment was difficult but Ms. Esters excelled, moving up the ranks from Facilities Manager to General Manager in less than a year. She is keenly aware of the difficult regulatory and compliance landscape regulated cannabis businesses must abide by, having been responsible not only for building compliance and OSHA guidelines, but later all aspects of daily operations, employee interactions, and local political lobbying. Outreach was a vital aspect of her role as General Manager. Ms. Esters was a regular face at City Council, Board of Supervisors and local industry coalitions to ensure responsible regulations were enacted that served to protect public health and safety but were also not so onerous as to dissuade businesses from legal operation. During her outreach and employment at Harborside, Ms. Esters also saw first - hand the trials and tribulations patients had trying to access quality cannabis goods, inspiring employment in another segment of the cannabis industry: distribution. At Lifted Resources, Ms. Esters further honed her creative muscles to find innovative solutions in the supply chain to enhance manufacturer and dispensary operations, all to ultimately improve the end patient experience. Working directly with manufacturers, Ms. Esters was able to negotiate lower pricing, while maintaining profit margins, which in turn meant dispensaries were able to pass those savings directly on to the consumer. She also held educational events to interact with end users and teach them the proper usage of the products the manufacturers produced. These events were illustrative, not only to reiterate the issues cannabis patients faced, but to provide feedback to the manufacturers on how the products could be improved in the future. 11 Ms. Esters is deeply connected her community. She has been a member of the Salinas Valley Women’s Network, a non-profit organization dedicated to providing support to professional businesswomen in the area, since 2012, and is also a longtime member of the Professional Women’s Network of Monterey. In 2015, she took a leadership position as Communications Director for both SLO and Monterey NORML chapters, which she still holds. Her expertise in a variety of retail and cannabis endeavors will be invaluable as we seek to engage with the SLO community to determine the cannabis goods most desired and needed by this population. Her ability to proactively seek solutions to complicated problems and flexibility in dealing with numerous regulatory bodies will serve invaluable as Harvest builds a business in SLO from the ground up. Her empathy and background interacting with medical cannabis patients ensures patient concerns are not lost in the shuffle of an adult-use and medical facility. As a SLO resident, Ms. Esters provides yet another layer of insight at Harvest, and will be able to ensure those views are voiced as Principal. Courtney Guluarte , Product Acquisition /Principal Courtney Guluarte, Principal of Harvest and Product Acquisition Manager has years of experience in quality control and cannabis production. Courtney is a SLO resident and has been involved in the medical cannabis industry her entire life. This gives her the unique ability to select only the highest quality products for Harvest of SLO’s carefully curated product selection. In 2010, Courtney began assisting in cultivation operations for friends and family on the Central Coast. There, she was immediately drawn to the science behind cultivation and manufacturing. She had an insatiable appetite for learning and began to do independent research on both cultivation and extraction methods . Although Courtney moved all over the Central Coast while growing up, she fin ally settled in Paso Robles. Courtney believes that Paso Robles chose her in a way – the familial culture with a love for cannabis cultivation and consumption called to her. She immersed herself in the cannabis culture there, seizing each employment opportunity available, meeting patients and working to understand their needs along the way. Courtney’s interaction with medical marijuana patients sparked her natural desire to give back, resulting in many hours and years of volunteer work for several non-profits. Specifically, Courtney volunteered at both the Paso Robles Food Bank and the SLO Food Bank, part of the larger Food Bank Coalition of SLO. Working her way up in the cannabis industry has been both challenging and informative. Between volunteer hours worked and entry level income, Courtney’s earnings classify her as status in the Community Benefit section of this application. Courtney’s years of experience have given her an eye for distinguishing cannabis products. She is able to immediately discern a products strain or 12 quality by sight and smell. Courtney’s talents will be invaluable for Harvest in SLO as we curate our inventory to best suit the needs and desires of the local adult -use and medical cannabis market alike. HARVEST NATIONAL TEA M Comprised of imminently qualified individuals across a range of disciplines, Harvest’s national team was originally brought together through a common goal of providing a safe, consistent, and quality cannabis product to patients in legal medical cannabis markets. Through this dedication and unique expertise, Harvest now runs successful, licensed operations across ten (10) states nationwide, where it holds medical and adult-use cannabis licenses for cultivation, manufacturing, and dispensing of cannabis. Though this application is for entry into both the medical cannabis market as well as the nascent adult -use cannabis market, Harvest of SLO intends to utilize this knowledgeable team and the best practices and procedures learned throughout its medical operations to build state of the art, strictly compliant medical and adult-use operations in SLO to provide access for all qualified persons. This group of individuals will provide training and be available for consultation at all time to the Harvest of SLO enterprise. Without a doubt, the team has learned how to optimize operations to deliver customer-centric experiences and are thrilled to deliver that same opportunity to Harvest of SLO. Steve Gutterman, President Steve Gutterman, President of Harvest, has more than twenty (20) years of experience managing high growth businesses in highly regulated industries, and has harnessed that background to oversee Harvest’s impressive expansion throughout regulated medical cannabis markets around the nation. He began his career as a corporate lawyer, ultimately becoming the Executive Vice President of Banking at E*TRADE, which he helped lead for a growth of $1 billion to $35 billion in assets. In this role, he worked closely with regulators at the Office of Thrift Supervision and the Securities Exchange Commission, collaborating with regulators to create a national plan to comply with the Community Reinvestment Act. After E*TRADE, Steve joined MBH Enterprises, a private equity firm. MBH’s portfolio companies, operating in the highly regulated financial services industry, grew by $330 million in annual revenue during his tenure. Finally, he joined Mobile Accord in 2013 as CEO. While operating this global company, he guided country-specific compliance with privacy laws, telecom regulations, and banking and taxation treaties, ultimately adding 400 million telecom subscribers in forty-five (45) countries. Steve is passionate about serving customers. At E*TRADE, his business lines won numerous awards for product innovation and service. At Mobile Accord, he led a company whose work was featured by the United Nations in its “2020 Vision” and the Cent ers for Disease Control in its response to the Ebola crisis. Additionally, during this time he also acted as advisor to the Ministry of Information for the Government of the Republic of Tanzania. 13 Throughout his career, Steve has worked to create equal opportunities for all members of his community. He was an organizer and board member of Solara National Bank, the first nationally-chartered bank to cater to Hispanic banking customers. He is also a past member of the Columbia Law School Board of Visitors and a former chair and board member for the Institute for the Study of Israel in the Middle East. He has advised numerous political candidates as member and chair of their finance committees. Steve loved being a part of the development of the e-commerce industry. That passion to work with thought leaders, regulators, customers, and even competitors to define and lead a nascent industry brought him to the cannabis industry and to Harvest. He is gratified to work with a medicine that can bring so much relief. Steve’s grandmother suffered from extremely painful arthritis, and he expresses regret that the selective use of cannabis was not available to her to ease her suffering. Her experience informs a foundational aspect of Harvest’s operations: ensuring access for all those qualified not only to cannabis, but to educational resources and support. Steve has spent his career leading teams and turning companies into market leaders. As President of Harvest, he is tasked with the day-to-day operations of the business. In this capacity, Steve applies the twenty (20) years of experience he has in growing businesses to creating and refining the best team, processes, and products in the industry, and he oversees the implementation of policies and procedures developed in consultation with industry regulations, guidelines, and standards. Steve’s work is crucial in the everyday success of the operation, but also in ensuring a variety of services and resources are available to meet the needs of customers and the surrounding community. Michele Trzuskowski, Vice President of Retail Operations Michele Trzuskowski, Vice President of Retail Operations at Harvest, is an accomplished entrepreneur with more than thirty (30) years of management experience in retail operations. A self-starter whose attitude and drive saw her rise through the ranks within expanding national corporate organizations and at self-started boutique retail companies alike, her expertise is invaluable as Harvest seeks to continue its growth momentum as well as continue to provide unmatched services and resources to the surrounding community. Michele began her career at Egghead Software in 1986 as a store manager in Chicago. Over the next six (6) years she advanced through the company, ultimately serving as West Coas t Regional Director, responsible for sales, service, and bottom -line performance for a $140 million, seventy-five (75) store region spanning the west coast of the United States and British Columbia. Michele next transitioned to Sunglass Hut International, where she served in a variety of management roles during her seven (7) year tenure. As Department Store Operations Director, she initiated and implemented a startup license business program with renowned department stores including Dayton Hudson 14 with twenty (20) stores; Burdines with forty-five (45) stores; Sears with fifty-five (55) stores; and Eaton’s with eighty (80) stores. She was a crucial voice in store design, signage, location assignments, rent and expansion negotiations, merchandising strategies, and store-specific promotional and marketing campaigns. After a promotion to Managing Director of Europe, Michele was originally tasked with overseeing the closure of Sunglass Hut’s one hundred eight (108) store international market. Instead, she guided its recovery, implementing a variety of strategies to improve international performance, including a revised European Business Model, profitable new service programs, expanded product offerings, and country-specific marketing campaigns. Finally, as Director of New Business Development, Michele was responsible for creating and testing a new format watch and sunglass combination store, including synergistic marketing strategies and the expansion of a future fashion accessory concept store. In 2000, Michele struck out on her own to found and operate T is for Table, a luxury table - top boutique selling dinnerware, flatware, and home decor, which is now a multi -store retail business with locations in Palm Beach and West Palm Beach, Florida; Centennial, Colorado; and an e-commerce presence at tisfortable.com. While operating T is for Table, Michele achieved positive comparative sales growth for fourteen (14) of the past seventeen (17) years, a product of innovative marketing strategies (e.g., loyalty programs, bridal registries, etc.) and regular editorial publications as an established expert in tabletop design, entertainment, and etiquette. She also developed a vertical marketing strategy through the introduction of her own American-manufactured china, To Dine for Designs. As a new member of Harvest, Michele’s goal is to improve the effectiveness and efficiency of Harvest’s retail portfolio and reduce costs through economies of scale. Initial strategies include task centralization, store-specific merchandise mixtures, improved reporting and trend analyses, more efficient staffing models, training and performance management programs, KPI tracking, and redefining store culture and experience. With this increased streamlining of Harvest’s operations, Harvest will be even better situated to give back to the community by providing a plethora of resources and services to the neighborhood. Leo Jaschke, Chief Financial Officer Leo Jaschke, Chief Financial Officer of Harvest, is a recent addition to the national team and brings decades of experience managing financial and accounting departments for public and private start-ups and multi-national businesses alike. In addition to extensive experience with financial reporting, system implementation, creation and development of accounting and finance teams, audit management, capitalization, equity presentations, mergers and acquisitions, and initial public offerings, Leo also has ten (10) years of experience in private equity. This combination of effective financial management coupled with the ability to communicate and grow companies via private equity is invaluable to Harvest, and will be vital to ensuring Harvest can not only provide the most consistent, highest quality cannabis to 15 customers in SLO, but will have sufficient resources to provide numerous services and resources to the residents of SLO, including keeping patrons informed of the latest scientific and health care breakthroughs involving cannabis. Leo began his career as the Vice President of Finance at Einstein Noah Re staurant Group, Inc., a former NASDAQ listed quick causal restaurant chain with over seven hundred fifty 750+) locations and $400 million in revenue. During this time, he successfully navigated the separation of the company from its majority owner, establishing and developing new accounting departments to ensure the self-sufficiency of the operation: accounts payable, asset management, corporate accounting, corporate finance, payroll, accounting IT systems, and treasury. He also was instrumental in raising capital after the departure of the former majority owner, actively participating in the capitalization of both private equity and public bond debt. This ability to effectively manage the financial complexities of day -to-day operations no matter the circumstances was evidenced at Leo’s next position as well. As the Director of Finance, Treasury, and Risk Management at Ultimate Electronics, he was able to help the company through a financial crisis by creating cash management and forecasting tools for short, medium, and long-term growth. These best practices established credibility with banks whose support was wavering, providing the company time to pursue a controlled restructuring for the benefit of both employees and shareholders. Leo’s successful management was tested on an even larger scale during his tenure as Chief Financial Officer at MBHE Holdings, LLC. There, he oversaw the audit of consolidated financial statements and tax preparation for over seventy (70) entities with a range of applicable statutory requirements, and completed acquisition or divestiture for over twenty 20) companies. As the primary lender contact, Leo led the financing, renewal, and expansion of over $300 million in senior debt facilities, resulting in over $15 million in accelerated investor returns. Over multiple private offerings, he raised over $100 million in equity. Wanting to continue his work in excellent financial management for new and cutting -edge companies, Leo next joined an entrepreneurial growth company in the water-based consumer beverage market, driving a 170% gross margin improvement, 50% days sales outstanding (“DSO”) improvement, and 35% revenue growth in a period of a little over a year. This dedication to supporting entrepreneurs led Leo to Harvest, where he serves as Chief Financial Officer. Harvest is thrilled to have Leo’s extensive knowledge and expertise on the team. Without healthy financial management, Harvest will be unable to pursue its goal of providing quality cannabis, services, and resources to the people of SLO. Leo’s ability to guide corporate financing, planning, forecasting, and analysis; to manage financial reporting and compliance; to establish best practices in accounting standards and financial controls; and to manage capital and treasury processes to ensure adequate cash flow to support growth, is 16 unparalleled. Under his direction, Harvest will be poised to provide a number of quality products, resources, and services to the people of SLO. Should any issues arise, Leo has the expertise to identify and implement the necessary changes to get the operation back on track. Timothy Buskirk, Safety and Security Compliance Director Timothy Buskirk, Safety and Security Compliance Director for Harvest, has fifteen (15) years of law enforcement experience which he draws on to oversee safety and security for all of Harvest’s facilities. A former chief of police, Timothy is adept at managing security operations with extensive regulatory requirements and numerous moving pieces, making him a superb fit for the nascent and highly regulated cannabis industry. As a police officer, Timothy successfully conformed to all mandated requirements for law enforcement activity from training, service hours, accident investigation, and patrols to clothing, appearance, and vehicle cleanliness standards. He completed a number of specialized training courses, including: Search and Rescue/Search Manager School Criminal Street Gang School First Line Supervisor School Taser Certification Certified Narcotic Detection First Aid, CPR, and AED Certifications Defensive Tactics Training O.C. Spray Training Judgmental Decision Training Crisis Intervention Training For the next ten (10) years, Timothy served as Chief of Police for the town of Hancock, Maryland. Responsible for the 24-hour security and monitoring of the entire town, he supervised law enforcement patrols, apprehended criminals, ensured public safety during town events, responded to building alarms and emergency calls, and designed and implemented the town’s downtown surveillance and monitoring system. His dedication to the safety and security of his community was honored by Washington County, which twice awarded him the Life Saving Award for saving the life of another by providing essential medical treatment prior to arrival of emergency medical services personnel. Timothy entered the cannabis industry after his father’s passing from cancer. His father had difficulty with chemotherapy and radiation treatments, and Timothy wondered privately if cannabis might have helped ease his pain in his final days. After educating himself on the subject, he decided he wanted to protect the products and the people that make them, so others can benefit from cannabis in a way his own father could not. 17 Timothy oversees safety and security for all of Harvest’s managed facilities, from sourcing state-of-the-art security and surveillance equipment to conducting initial and annual safety and security training, and is responsible for ensuring that Harvest remains at the fo refront of safety and security innovation and protection. He has developed and implements Harvest’s safety and security policies and standard operating procedures, is in charge of risk assessment and crisis management, and trains management and staff on how to respond to potentially life-threatening situations such as active shooters and natural disasters. Timothy also builds relationships with local law enforcement and emergency response personnel to seek consultation on facility security systems and protocols and ensure familiarity with the facilities and the management teams to facilitate rapid response in the event of an emergency. Timothy has applied his past experience as chief of police to create fully compliant and secure facilities, providing peace of mind to customers and neighbors alike. If Harvest is awarded a license in SLO, Timothy will spearhead the same approach, keeping the facility safe and secure so Harvest can provide quality cannabis as well as informative resources and helpful services to the greater SLO community, with minimal risk of theft or diversion outside the legal market. Sean Berberian, General Counsel Sean Berberian, General Counsel for Harvest, brings eighteen (18) years of legal experience to the team, including ten (10) years in the emerging sector of cannabis compliance. While not in a customer-facing position, Sean is responsible for ensuring the legality of all Harvest’s operations, and thus is instrumental in ensuring the continued success of the overall business. With Sean’s guidance, Harvest will continue to be an industry leader offering numerous quality services and resources to the SLO community. As a student at the Hastings College of Law, Sean had the distinct honor of working for the Chief Judge of the United State District Court for Northern California as well as being published twice in academic and law journals. His legal acumen helped him land his first attorney position at the national firm of Shook, Hardy and Bacon before becoming the youngest partner ever at Stinson, Morrison and Hecker, another national law firm. After years of complex civil litigation, Sean joined Steve White to form White Berberian in 2007, expanding his practice to include complex business transactions and regulatory work in a variety of fields, including cannabis. Sean’s practice has afforded him the opportunity to try cases before the U.S. Supreme Court and the Ninth Circuit Court of Appeals. He has litigated against and worked with a number of agencies tasked with regulatory compliance, including the Arizona Department of Health Services, Arizona’s state cannabis regulatory body; the Maryland Medical Cannabis Commission, Maryland’s state cannabis regulatory body; the Maricopa County Flood Control District; the Maricopa County Sheriff’s Office; and Maricopa County Correctional Health Services. 18 Sean has represented Harvest for a number of years in his capacity at White Berberian, but joined the team full-time as general counsel in 2017. While passionate about regulatory compliance and excited at the intellectual challenge of representing an industry-leading company in a heavily-regulated nascent industry, Sean’s enthusiasm for Harvest goes beyond professional goals and his belief in and support of the company’s business and people. Like so many on Harvest’s team, Sean believes in the medical benefits and possibilities of cannabis. Sean has been struck by the stories from the members of Harvesting Hope, and he has heard many accounts of parents of children suffering from diseases whose lives have dramatically changed because of successful treatment by cannabis. Sean has also experienced great personal success in post-surgical recovery through the use of CBD extracts, which he has found provided better anti-inflammatory and pain control than the prescription drugs typically prescribed by doctors. After his most recent knee surgery - a weekend warrior byproduct - he eschewed all prescribed opioid pain medication and their dangerous side effects and instead successfully recovered while using a cann abis extract. He truly believes that cannabis should be available to all qualified individuals who need it, and through his capacity as general counsel, will help ensure that Harvest abides by and exceeds all legal requirements and standards established at all levels of the regulatory structure, from state agencies to local municipalities. With his guidance, Harvest will run a 100% compliant operation, providing customers a sense of security and allowing Harvest to serve as a trusted resource for cannabis, education, services and resources. Siobahn Carragher, Director of Human Resources Siobahn Carragher, Director of Human Resources at Harvest, is a human resources and employment specialist with fifteen (15) years of experience in the highly regulated health care industry. She has seamlessly transitioned her skills learned as HR Manager at Hamilton Prosthetic and Orthopedic Centers; Pongratz Orthotics and Prothestics; and Hamilton, Pongratz, and BLOCAH Fluid Control to help build a transparent, communicative, inclusive and compliant human resources department within Harvest to handle all variety of employee concerns. Harvest believes that by supporting its employees, customers will in turn be provided the best care and customer experience possible, and Siobahn’s work is crucial to that mission. Siobahn’s extensive experience with regulatory bodies and government agencies means she holds unparalleled knowledge of a wide range of requirements, including: the Health Insurance Portability and Accountability Act (“HIPPA”), the Affordable Care Act, the Family Medical Leave Act, Equal Employment Opportunity (“EEO”) reporting, the Employee Retirement Income Security Act, the Americans with Disabilities Act, the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the National Labor Relations Board, and the Department of Labor. As an HR professional, she has maintained compliance within these sectors through the development of policies, procedures, and employee handbooks; benefits and enrollment guidance; employee training; and performance management. 19 Since joining Harvest in 2015, Siobahn has managed cannabis industry regulatory requirements in six (6) states and dozens of local municipalities, where she analyzes and modifies compensation and benefits policies; advises management on EEO and sexual harassment regulations and best practices; manages staffing strategies and duties, including hiring, training, performance evaluation and termination; maintains and analyzes reports concerning personnel-related data; and ensures HR and employment compliance on local, state, and federal levels. She also establishes internships with surrounding colleges and universities to attract promising recent graduates to the cannabis industry. She is a member of the Diversity Leadership Alliance, a diversity education organization in Arizona, and is a Society for Human Resource Management Senior Certified Professional. Most recently, Siobahn has developed and implemented The Harvest Way, a human resources initiative designed to perpetuate a culture of empowerment, truth, and perseverance throughout the organization. This initiative encourages employees to be genuine, dedicated, impactful, and accountable through team -building, employee exchange opportunities, and by incorporating those four core values throughout day-to-day work goals and activities. Harvest knows happy employees will provide the best quality of service to our customers, and Siobahn’s work has laid the foundation for a transparent and inclusive organization to meet that goal. Liesl Sicz, Talent Development manager Liesl Sicz, Director of Retail Operations for Harvest, has nearly twenty -one (21) years of retail management experience, including over five (5) years in the highly specialized world of retail cannabis operations. Her insight into the day-to-day workings of cannabis retail operations is invaluable and instrumental in helping determine and shape what services would be best suited for Harvest’s potential SLO, California location. For sixteen (16) years, Liesl served as Corporate District Manager for Charming Shoppes, Inc., a national corporation of well -known retail women’s fashion stores including Fashion Bug, Lane Bryant, and Catherine’s. In that capacity, Liesl managed twenty-five (25) stores, opened forty (40) independent retail locations, and was responsible for over four hundred 400) employees across five (5) states. She consistently ranked first in the company for sales volume and profit margins, and was one (1) of only six (6) district managers selected to assist the company president in establishing new best hiring practices. She was recognized for all her efforts as the five-time winner of the Hawk Trophy, four-time first in sales district winner, and received the President’s Select Award for generatin g new ideas to drive profit. Liesl joined Harvest in 2013, and over the past five (5) years has opened and continues to oversee Harvest’s dispensaries. A supremely competent manager, Liesl is able to handle a range of high-stake responsibilities, including the simultaneous launch of multiple dispensaries in different states: the first time, opening dispensaries in Arizona and Nevada; the second in Arizona and Maryland. Her ability to not only initiate successful operations, but also maintain compliance with a vast array of regulatory agencies and dozens of state, local, 20 and ASA audits and inspections makes her an invaluable member of the Harvest team. As a growing business in this nascent industry, Harvest takes its responsibilities seriously and is ready to tackle the state-specific standards for everything from identity verification, packaging and labeling, forms of cannabis permitted for distribution, point of sale software, inventory tracking software and requirements, product reception, packaging and lab eling, quality assurance, laboratory testing, delivery and transport, access limitations, product display, and marketing and advertising. Liesl helps ensure Harvest is 100% compliant at all times, meaning it does not have to expend resources mitigating violations, and can instead reinvest those funds into quality services and resources for the SLO community. Dr. William Troutt, Director of Cannabis Education Dr. William Troutt, Director of Cannabis Education at Harvest, has dedicated his professional career to exploring the medical benefits of cannabis and supporting and educating patients, customers, industry members and the general public about its use. His continued leadership in cannabis education and healthcare ensures Harvest has an industry leader developing quality resources and services on behalf of the SLO community in both the crucial scientific and health care fields. After specializing in botanical and natural medicines during his tenure at Southwest College of Naturopathic Medicine, and the subsequent passage of Arizona’s Medical Marijuana Act in 2010, William wanted to be on the cutting edge of cannabis’ revolutionary medical impact. He was the first medical director of a state-licensed dispensary in Arizona and has trained medical cannabis employees since 2012. He currently serves as the medical director for seven (7) Arizona and two (2) Nevada dispensaries and as the Director of Cannabis Education for facilities in three other states, providing cannabis training to every employee and developing educational materials to not only inform customers about cannabis, but to address specific concerns of the communities in which Harvest operates. William is committed to continually improving scientific, academic, and general public’s understanding of this complex plant. He co-founded the Medical Marijuana Research Institute, a scientific organization dedicated to better understanding the therapeutic effects of cannabis and disseminating that research in the academic community. To date, William has first-authored two studies in peer-reviewed academic journals. The first, published in the Journal of Psychoactive Drugs , was the first study to examine cannabis patients living in Arizona. Over three hundred sixty (360) patients reported on their cannabis use, perceptions of its efficacy, and their experiences using cannabis medicinally before and after cannabis legalization. The findings revealed key similarities and differences between patients from Arizona and those from other states, that patients successfully used cannabis to treat a variety of medical conditions, and that legalization has had many positive effects on patient outcomes, including increased feelings of safety, improved product knowledge, and greater product effectiveness. 21 The second study, published in the Journal of Alternative and Complementary Medicine, examined the carcinogenic byproducts of vaporizing polyethylene glycol 400 (“PEG 400”), propylene glycol (“PG”), vegetable glycerin (“VG”), and medium chain triglycerides (“MCT”), popular thinning agents used in medical cannabis vapor products (e.g., cartridges containing cannabis oil). The study showed that PEG 400 produced the highest levels of carcinogenic material when heated in a vaporizing device, particularly formaldehyde, which was produced at levels comparable to cigarette smoke. PG produced formaldehyde and acetaldehyde at moderate levels, and MCT and VG produced negligible levels of harmful byproducts. These results inform Harvest’s manufacturing processes and ensure Harvest is only providing the safest forms of consumption to their customers. Hours on the front lines consulting with thousands of medical cannabis patients has provided William with extensive practical experience in safe and effective cannabis use. Coupled with his scientific background, William is uniquely qualified to educate and inform existing and potential customers on a range of subjects, from the history of cannabis use for medical purposes, cannabis varieties and uses, cannabis therapy and the senior population , and cannabis use for epilepsy, seizure disorders, cancer, inflammation, and chronic pain. He has also given a number of formal lectures at medical organizations and schools across the country, with topics such as: Cannabis and the Senior Population; Cannabis for Pediatric Conditions; Cannabis and PTSD; Cannabis and Seizure Disorders; and Cannabis for Palliative Care During Cancer Treatment. Finally, William also serves as the Executive Director of Harvesting Hope, Harvest’s non -profit organization. Through Harvesting Hope, William has provided free consultation and guidance for over one hundred (100) families on the use of cannabis for treating children with pediatric seizure disorders, has hosted hundreds of support group meetings and group discussions, and has been instrumental in raising and distributing funds needed by families to treat their children. William is immensely qualified to serve as Harvest’s Director of Cannabis Education. His years of work in this industry ensures he has a depth of knowledge and understanding unsurpassed by others in his field, and his personal involvement with so many cannabis patients across the country provides him a unique insight into the questions and concerns of those utilizing cannabis for therapeutic benefit, as well as the most effective way to communicate necessary and important information to customers. With William’s invaluable knowledge and experience, Harvest will be able to provide a wealth of quality services and resources at the forefront of cannabis innovation to the SLO community, particularly in the scientific and health care fields. 22 Paul Nowak, Vice President of Design and Construction Paul Nowak, Vice President of Design and Construction at Harvest, has seventeen (17) years of experience building pharmaceutical and research facilities, and has transitioned this background to the development of state-of-the-art and fully compliant cannabis facilities. Under his effective management, Harvest will be able to construct its SLO facility in an efficient and cost-effective manner, resulting in access to cannabis and quality resources and services for the SLO neighborhood on a faster timeline than any other applicant. After receiving a degree in Construction Management and Engineering from Arizona State University in 2002, Paul worked for Gilbane, one of the nation’s largest builders of biotechnology research and pharmaceutical manufacturing facilities. He later co -founded Waltz Construction, where he served as Vice President and Operations Manager for eleven 11) years, overseeing all day-to-day construction activities including budget tracking, schedules, and contracts. Specializing in pharmaceutical and research facility design and construction, Paul has made his living ensuring strict compliance with a variety of regulatory requirements. His work includes the State of Arizona Health Laboratory, the Interdisciplinary Science and Technology Building at Arizona State University, the Interdisciplinary Research Facility at the University of Arizona, and the Physical Science F Wing at Arizona State University. All were designed and constructed to comply with Center for Disease Control (“CDC”) Biosafety Level 3 laboratory requirements, International Organization for Standardization (“ISO”) certified clean room regulations, and state-regulated security access and controls, and to contain and prevent the emission of dust, fumes, vapors, and odors into the environment. Paul integrates LEED and eco-conscious practices in his design and construction work in order to create not only successful, but sustainable facilities that are healthier and provide a better quality of life for surrounding neighbors, incorporating green building, water conservation, air quality control, and energy efficiency. At Harvest, Paul has seamlessly transitioned his extensive experience in pharmaceutical and research facility design and construction to create state-of-the-art cannabis facilities. As of this writing, he has played a key role in the development of fifteen (15) dispensaries, nine (9) cultivation facilities, and five (5) production facilities, all conforming to stringent regulations at the state, county, and local levels across seven (7) states and dozens of municipalities. His dispensaries incorporate security systems with components similar to bank central vault protocols and hardware, and many include innovative back -of-house functionality, such as back-loading shelving and refrigeration, which facilitate efficient operation. Depending on building size and local market demand, these dispensaries were designed to accommodate seven hundred (700) to fifteen hundred (1,500) customers daily, and range in size from 1,300 ft2 to 6,800 ft2. Paul will utilize his past experience as well as his highly specialized knowledge in cannabis facilities to construct a fully compliant, state-of-the-art cannabis facility for SLO in a streamlined manner, so Harvest can begin offering cannabis, as well as providing quality services and resources, to the SLO community before any other licensed entity. 23 HOURS OF OPERATION The Commercial Cannabis Facility will operate a minimum of thirty-five (35) hours per week. Hours of operation will be compliant with the rules set forth by the Bureau of Cannabis Control, the California Department of Public Health Manufactured Cannabis Safety Branch , and all applicable state and local laws, regulations, ordinances, and other requirements. Harvest will only sell cannabis goods during the hours of 9:00 a.m. Pacific Time to 8:00 p.m1. Pacific Time, unless an alternative time frame is established by the local and state cannabis authorities. Harvest will conspicuously post the hours of operation at all public entrances to the Facility. Deliveries of cannabis in the City will only be conducted between the hours of 6:00 a.m. to 10:00p.m. Pacific Time2. Whenever the Facility will not be open for retail sales, Harvest will ensure that the premises will be securely locked with commercial-grade, non-residential door locks and will be equipped with an active alarm system. All cannabis goods will be stored in a locked safe at the Facility and only authorized employees and contractors of Harvest will be allowed to enter the premises after hours. DISPLAY OF PERMITS Harvest will post a copy of the Commercial Cannabis Operator Permit issued by the City of SLO, together with a copy of the appropriate state license(s) for the Commercial Cannabis Activity being conducted.3 The permits and licenses will be posted and readily visible to the public at all times. Harvest will not purchase, receive, possess, sell, or dispense any cannabis without a valid license from the Bureau of Cannabis Control, the California Department of Public Health Manufactured Cannabis Safety Branch, and the local cannabis licensing authority. Any Harvest owner, operator, employee or person will produce for inspection and copying, upon request of a City inspector, code enforcement officer, or City police officer during normal operating hours, the original of the current and valid City of SLO Commercial Cannabis Operator Permit and the appropriate, current and valid license(s) of the State of California for the Commercial Cannabis Activity(ies) and Commercial Cannabis Business( es) being conducted.4 DAY -TO-DAY OPERATION S This section outlines some of the day-to-day operational procedures that the Harvest team will implement at their Commercial Cannabis Facility in order to comply with the laws, regulations, and ordinances of the Bureau of Cannabis Control (the “Bureau”), the California Department of Public Health Manufactured Cannabis Safety Branch (the “Department”), and the SLO Municipal Code (the “City”). 1 SLOMC 17.99.505 (J) (2) 5 2 SLOMC 17.99.505 (K)(2) 3 SLOMC 9.10.060 4 SLOMC 9.10.060 (B) 24 Retail Storefront Day -To-Day Operations A large part of day-to-day operations at the Retail Facility will involve retail transactions. Harvest is committed to protection of the public, to preventing the diversion of cannabis and cannabis products to minors, and to responsibly leading the cannabis industry forward. Retail transactions also involve many safety and security procedures. Full details pertaining to transactional security can be found in the Security Plan provided with this application. At the retail storefront, there is one main entrance for qualified patients, primary caregivers, and customers to enter. At the beginning of each day the retail storefront is open for business, a security guard and the Facility Manager will open the retail storefront using their employee access credentials and perform an opening inspection to ensure all systems are operating correctly. ACCESS CONTROL AND A GE VERIFICATION All Harvest employees will have the necessary training and knowledge to safely and compliantly sell cannabis products. Employee training consists of the requirement that all employees receive and maintain Responsible Vendor Certification through a registered Responsible Vendor Training Program as well as receive in -house training on the use of age verification equipment and the proper procedure for visual inspection of identification. Strategic facility design involves the use of exterior signage, commercial -grade non- residential doors and locks, and the use of surveillance equipment to monitor and prevent unauthorized access. Lastly, entry protocol includes screening, registration, and validation processes. All details pertaining to access control can be found in the Security Plan that accompanies this application. Minors will never be allowed on the premises, even if accompanied by a parent or guardian.5 For medical transactions, prior to dispensing medicinal cannabis or medicinal cannabis products to any person, Harvest will obtain verification from the recommending physician that the person requesting the item is a qualified patient. Harvest will also verify the age and all necessary documentation of each medical patient to ensure the customer is not under the age of twenty-one (21) years and that they are a qualified patient. For adult-use, Harvest will verify the age of all customers to ensure that persons under the age of twenty-one (21) years are not permitted on the premises. Harvest will not locate, install, keep, maintain or use any cannabis vending machine used or intended to be used for the purpose of selling any cannabis products or cannabis accessories therefrom. Cannabis products or cannabis accessories will not be sold by a vending machine 5 SLOMC 9.10.230 25 or a self-service display. All cannabis products will be offered for sale exclusive by means of employee assistance.6 To ensure compliance with all applicable laws during day -to-day operations, retail areas will only be accessible to Harvest employees, verified consumers, authorized repres entatives of the Bureau, the Department, the City and other government officials, and authorized tradespeople when necessary to perform their duties. The training of Harvest employees and the design of the Harvest store is paramount to carrying out this vision. VISIBILITY AND DISPLAY All commercial cannabis operations will be concealed from public view at all times and there will be no exterior evidence of cannabis or cannabis products occurring at the property, visible with normal unaided vision from any public place, or the public right-of way.7 The display of cannabis goods will only occur in the Retail Area, depicted on our floor plan, during operating hours of the Retail Facility. No cannabis goods will be displayed in areas outside of the retail area or where they will be visible from outside the Retail Facility. Cannabis goods on display will not be readily accessible to consumers, but they may be removed from their packaging and placed in containers to allow for client inspection. This is further detailed in the Inventory Management section of this narrative. Additionally, Harvest will never conduct any cannabis event in the City.8 Harvest will also not sell, give, exchange, dispense or distribute cannabis or cannabis products for on -site consumption, use or sampling on its premises. No cannabis may be consumed on the premises. TRACK AND TRACE SYST EM The design of and the details and planning preparations for the Harvest seed -to-sale tracking system, MJ Freeway, are discussed in more detail in a later section. Harvest will ensure it has in place a point-of-sale or management inventory tracking system to track and report on all aspects of the business including but not limited to, cannabis tracking, inventory data, gross sales (by weight and by sale) and other information deemed necessary by the City. The system will also produce historical transactional data for review and the system will be in compliance with state law. Harvest will provide evidence of the ability to execute this program in a later section. MJ Freeway will integrate with the state’s track and trace system, METRC. DAILY LIMITS 6 SLOMC 9.10.240 (A) (B) 7 SLOMC 17.99.050 (E) (4) 8 SLOMC 9.10.210 (B) 26 In compliance with state law, Harvest employees will not exceed the daily adult -use consumer sale limits of 28.5 grams of non -concentrated cannabis, eight (8) grams of concentrated cannabis (including concentrated cannabis contained in cannabis products) or six (6) cannabis plants per retail consumer. Harvest’s medical cannabis patients and caregivers making purchases on a current medical cannabis patient’s behalf will be limited to a maximum daily purchase of eight (8) ounces of medicinal cannabis and up to six (6) mature or twelve (12) immature cannabis plants. If a medicinal cannabis patient or caregiver provides a valid physician’s recommendation for an amount that exceeds 8 ounces, the alternative amount will be recorded in internal patient records and the patient or caregiver may purchase an amount of medicinal cannabis consistent with the recommendation. SALES RECEIPTS Every sale or transport of cannabis or cannabis products will be recorded on a sales invoice or receipt. Sales invoices and receipts may be maintained electronically and will be filed in such a manner as to be readily accessible for examination by employees of the licensing authorities or the California Department of Tax and Fee Administration (“CDTFA”) and will not be commingled with invoices covering other commodities. TAX The Harvest team has an extensive background in ensuring tax compliance. All Harvest sales transactions may be subject to applicable tax rates. If applicable, the proper tax rates will be programmed into each point of sale system to ensure that tax is col lected. The Director of Retail Operations, in coordination with the Chief Financial Officer, will ensure the proper collection of tax on all taxable products sold in the Retail Facility. Purchasers of cannabis or cannabis products will be subject to a state cannabis excise tax at the rate of fifteen percent (15%) of the average market price of any retail sale by a cannabis retailer. Harvest will provide all consumers with an invoice, receipt, or other document that displays the cannabis excise tax separately from the list price, the price advertised in the premises, the marked price, or other price and includes a statement that reads: “The cannabis cultivation and excise taxes are included in the total amount of this invoice.” Retail Delivery Experience The Harvest Inc. team has significant experience operating secure and compliant commercial cannabis delivery services, as proven through its successful multi -store delivery service offerings in stringent regulatory environments such as Arizona. Harvest’s Arizona operations have provided the critical foundation of knowledge needed for compliant 27 transportation process envisioning, systems implementation, labor productivity, and customer service improvement that Harvest will apply throughout all of its SLO operati ons. Harvest intends to use the wealth of information and logistical know -how it has developed in Arizona to operate SLO’s (“LO”) premier cannabis dispensary and delivery service. Harvest is committed to serving as a pristine example of regulatory compli ance and demonstrating responsible corporate stewardship throughout all aspects of its operations. Harvest has used its operating experience in other jurisdictions and has proactively engaged legal counsel and industry experts across the United States to i dentify and develop best practices for safe, compliant delivery service operations. Harvest believes that successful implementation of compliant practices requires clear delineation of corporate policies, strong leadership who teach by example, and a commitment to learning and continuing improvement. As such, Harvest will abide by and enforce the corporate policies, operating procedures, and regulatory requirements outlined below to ensure the implementation and maintenance of safe, compliant delivery serv ice operations. Retail Delivery Day -To-Day Operations Harvest offers convenient and secure delivery service to lawful cannabis consumers at any eligible physical address within our delivery radius. Deliveries will only be made to patients and customers at a physical address within a city or county in the state of California that does not expressly prohibit such delivery by ordinance. Addresses will be verified on -site prior to preparing deliveries to ensure compliance with this requirement. Delivery requests may be received by phone or our online ordering system. Delivery will never occur between the hours of 10:00 pm and 7:00 am PST.9 When a customer places an order for delivery by phone, a delivery driver will record all required information on Harvest’s internal Delivery Request Form. The client will be looked up in Harvest’s third-party seed-to-sale system, MJ Freeway, and a new client profile created if the caller has never purchased cannabis goods from Harvest. If the client is missing or has out-of-date information in MJ Freeway, the retail employee will inform the client and explain the steps needed to obtain the outstanding information. The requested cannabis goods will be recorded on the form and, if possible, confirmed immediately in the seed-to-sale system. The patient or customer will be informed in advance of the delivery if requested cannabis goods are out of stock and the order can be modified at that time. Once the client has finished placing their order, the retail employee will repeat the delivery details and order for confirmation. The confirmed order will be submitted for internal processing. 9 SLOMC 9.10.250 (C) 28 Online orders will populate an electronic Delivery Request Form with the required information. A delivery driver will review the information provided in the client’s online Delivery Request Form, check internal inventory for the requested products, and review patient and customer records in the seed-to-sale system as described below. A delivery driver will communicate confirmation of the order electronically or by phone and provide an estimate of the total amount to be paid for the delivery, including any taxes and fees. All remai ning details will be recorded in the Delivery Request Form and submitted for internal processing. The delivery driver will inform clients in advance that a valid government-issued identification card and, if applicable, patient or caregiver documentation must be provided upon arrival. Customer age and identity will be confirmed upon arrival and prior to providing cannabis goods to a delivery client. DELIVERY REQUEST REC EIPT After a Delivery Request Form is received, a delivery driver will generate a hard and electronic copy of a Delivery Request Receipt through the statewide track and trace system. The Delivery Request Receipt will accurately reflect the inventory being delivered from the licensed premises to the consumer and will be in a format requi red by the Bureau. Harvest’s delivery drivers will maintain a hard or electronic copy of the request while conducting each delivery. The Delivery Request Receipt will contain, at minimum, the following: Business name and address; The name of the Harvest employee who prepared the order for delivery and his or her employee identification number; The first name of the client who requested the delivery and his or her internal client identification number; For medical cannabis deliveries, for the purposes of maintaining required confidentiality of personal information, a patient identification number for the cannabis patient who requested the delivery. Upon request from the Bureau, Harvest will provide the name of the cannabis patient associated with the patient identification number listed on the Delivery Request Receipt; The date and time the delivery request was made; The delivery address; A detailed description of all cannabis goods requested for delivery. The description will include the weight, volume, or any other accurate measure of the amount of any cannabis goods requested; The total amount paid for the delivery, including any taxes and fees, the cost of the cannabis goods, and any other charges related to the delivery; 29 Upon delivery, the date and time the delivery was made, and the signature of the consumer (or, if applicable, primary caregiver) receiving the delivery; and At the time of delivery, the delivery driver will provide the client who the placed the order with a hard or electronic copy of the Delivery Request Receipt. The client will sign the Delivery Request Receipt for Harvest’s records. DELIVERY ORDER PREPA RATION The delivery order preparation process will consist of the following: On the day of the delivery, the delivery manager or his or her designee will: Fulfill the order and verify the order fulfillment is accurate by comparing the prepared delivery order with the Delivery Request Form and Delivery Request Receipt ensuring the following correlate: o Product types; o Quantities; o Weights; o Labels; o Client and delivery details; and o Payment information. Sign off on the order and place an opaque exit package and required documentation in the designated outgoing deliveries area; Check to make sure that each delivery route scheduled that day contains no more than $5,000 worth of cannabis goods, calculated using the current retail price of all cannabis goods carried by, or within, the delivery vehicle; and Account for all inventory in Harvest’s computerized seed-to-sale system, MJ Freeway, as well as the statewide track and trace system, METRC. The prepared orders may then be carried to the delivery vehicle and locked inside a container(s) that will be secured to the interior of the vehicle. Cannabis goods will be locked in a box, container, or cage that is secured on the inside of the vehicle, including within the trunk, if applicable. Cannabis goods will not be visible to the public. Delivery vehicles will be loaded under video surveillance and with supervision by the delivery manager. While making deliveries, a delivery driver will not carry cannabis goods in excess of FIVE THOUSAND UNITED STATES DOLLARS ($5,000.00 USD) at any time. This value will be determined using the retail price of all cannabis goods carried by the delivery driver. DELIVERY INVENTORY L EDGER 30 Before leaving Harvest’s premises, the deliver manager will prepare a Delivery Inventory Ledger. The delivery driver will bring the ledger with them while conducting deliveries. For each cannabis good, the Delivery Inventory Ledger will include the following information: Type; Brand; Retail value; Statewide Track and Trace unique identifier (“UID”); and Weight, volume, or other accurate measure. Following each client delivery, the Delivery Inventory Ledger will be updated to reflect the current inventory in possession of Harvest’s driver. DELIVERY PROCEDURE Harvest’s delivery drivers will only carry cannabis goods in the delivery vehicle and will only perform deliveries for Harvest. Harvest’s delivery drivers will depart and retur n to Harvest before and after each delivery. Further, Harvest’s delivery drivers will not leave the premises with cannabis goods without at least one (1) delivery order that has already been received and processed by Harvest. For each delivery the delivery driver will do the following: When approximately five (5) minutes away from the delivery destination, telephone the client to inform him or her of the impending arrival; Inform personnel at the premises of arrival at the delivery location; Remove the lock box with the client’s order and the Delivery Request Receipt (or electronic device providing access to Delivery Request Receipt) from the delivery vehicle; Upon arrival at the client’s door, display the company-issued identification card and confirm that the client ordered cannabis goods from Harvest; Use the provided identification verification device to verify the client’s identification and age; If applicable, request, review, and confirm the validity of the patient or caregiver’s credentials; If credentials cannot be verified, immediately return to the delivery vehicle and inform personnel at the premises of the incident; If credentials are verified, find a safe place to unlock the lock box; Provide the client with a copy of the Delivery Reques t Receipt and present the cannabis goods for verification. Ask the client to verify the accuracy of the delivery as described on the Delivery Request Receipt; 31 Provide a hard or electronic copy of the signed Delivery Request Receipt to the client and retain signed hard or electronic copy for Harvest records. Instruct the client that they are also required to maintain a physical or electronic copy of the Delivery Request Receipt and must make it available upon request by cannabis regulatory authorities and law enforcement officers; and Take the lock box back to the delivery vehicle and secure it, then inform personnel at the premises that the delivery has been completed. If a Harvest delivery driver does not have any delivery requests to be performed for a thirty 30) minute period, the delivery driver will not make any additional deliveries and will return to Harvest’s premises. Required meal breaks will not count toward the thirty (30)-minute period. The delivery driver shall also maintain a Stop Log, detailing the reason and time for each stop made by the delivery driver during the delivery process. Upon returning to Harvest’s premises, the Stop Log shall be turned into the delivery manager, all undelivered cannabis goods will be returned to inventory and all necessary inventory and statewide track and trace records will be updated, as appropriate, the same day. DELIVERY REQUIREMENT S Delivery drivers must be twenty-one (21) years of age or older, hold a valid driver’s license, have a clean driving record or have resolved all prior violations, and complete training that covers cargo theft risk awareness, security protocols, and delivery procedures. Harvest will maintain an accurate list of delivery drivers as well as its driver’s license information. While delivering cannabis goods, only Harvest employees may be present in the delivery vehicle. Employees will not wear any clothing or symbols that suggest they are in possession of cannabis goods or are conducting deliveries on behalf of a licensed cannabis retai ler. The use of cannabis goods or other impairing substances by delivery drivers is strictly prohibited while in the process of delivering cannabis goods to consumers. Prior to leaving the premises for delivery, the delivery driver will be responsible for ensuring the vehicle contains a copy of its vehicle registration, insurance, copies of Harvest’s state and local cannabis licenses, Delivery Request Receipts, and Trip Plans in an easily accessible location. Additionally, the delivery driver will carry his or her driver’s license and Harvest-provided employee identification card on his or her person throughout the delivery process. Upon request by state or local law enforcement, representatives of cannabis regulatory authorities, or other state or local authorities, a delivery driver will present his or her driver’s license, Harvest employee identification card, vehicle insurance and registration, Harvest’s commercial cannabis licenses, Delivery Request Receipts, Delivery Inventory Ledgers, Stop Logs, and any other requested documentation that must be carried in the delivery vehicle by law. 32 DELIVERY VEHICLES Harvest delivery drivers will deliver cannabis goods to consumers using a Harvest approved enclosed motor vehicle. In alignment with the Energy Efficiency Plan, Harvest has chosen to invest in the Toyota Prius as the delivery vehicle. All delivery vehicles will be purchased at a local dealership and owned by Harvest. Any vehicle used in the delivery of cannabis goods will be operated by a delivery employee of Harvest. Only Harvest employees will be allowed in the delivery vehicle. Deliveries will be conducted in person and may not be conducted by aircraft, watercraft, drone, rail, or unmanned vehicle. Under no circumstances will cannabis goods be visible from the exterior of the delivery vehicle. To ensure that our delivery vehicles do not provide inadvertent advertising to minors in the community, no vehicle used for the delivery of cannabis products may bear Harvest’s name or any markings that indicate the vehicle will be used to deliver cannabis products. All delivery vehicles will be clean and maintained in good operating order. All delivery vehicles will be equipped with a vehicle alarm system. Delivery vehicles may also be protected by motion detectors, pressure switches, duress, panic, or hold -up alarms. If a delivery vehicle must be temporarily left unattended, the vehicle will be locked, secured, and the vehicle alarm system will be activated. Delivery vehicles will also have a Global Positioning System (“GPS”) device that is temporarily or permanently affixed to the delivery vehicle and will remain active and inside the vehicle at all times during delivery. Harvest will own the GPS device, use it exclusively for delivery purposes, and maintain the GPS history for all delivery vehicles for ninety (90) days. The GPS device’s location will be monitored during delivery at the premises. At all times, Harvest will be able to identify the geographic location of all delivery vehicles that will be making deliveries for Harvest and will provide that information to the Bureau upon request. CASH MANAGEMENT The Chief Financial Officer, in coordination with the Controller and Safety and Security Compliance Director, will ensure a system of internal controls are maintained for cash handling and accounting functions, including tax collection and remittance on behalf of other licensees or cash management from the day to day operations of Harvest. Tight controls will remove opportunities for unauthorized access to cash. The Chief Financial Officer will ensure employees follow cash security measures including, but not limited to: Clearly defining and communicating roles and duties of each employee performing the cash transit. 33 Establishing procedures for risk assessment and theft prevention measures. Establishing procedures for vehicle collision or vehicle or equipment breakdown. Rotating cash handlers frequently. Counting cash in a secure and locked area with appropriate surveillance. Moving cash to the cash safe immediately if Harvest cannot transport the cash to the appropriate tax authority on behalf of another licensee. Requiring two (2) employees to open any cash safe. o Combinations will not be issued in totality to any one employee. o Both employees will be required to combine segments of the combination to access stored cash. Requiring dual custody any time cash will be transferred from the Facility to the appropriate tax authority or bank. QUALITY CONTROL PROCEDURES Though extensive details pertaining to Harvest’s commitment to public health and safety through ensuring the integrity of our cannabis goods can be found in the Enhanced Product Safety Plan included with this narrative, quality control and assurance are in tegral to the operation of the proposed Commercial Cannabis Facility. Our commitment to providing cannabis patients and consumers with high-quality cannabis products, as well as customer service that they can rely on, is the reason why Harvest sets the bar for industry best practices. Details pertaining to quality control in all of our day to day operations can be found below. Quality Control in Retail Operations The Director of Retail Operations will be responsible for ensuring all employees fully compl y with all of Harvest’s retail operations policies and procedures. The policies and procedures will, at a minimum, reflect the following quality assurance principles: Managing both compliant and efficient operations; Ensuring that all employees adhere to all Harvest standard operating procedures; Implementing handling procedures that prevent contamination of cannabis and cannabis products; Ensuring all cannabis and cannabis products received satisfy all state requirements regarding identity, strength, quality, and purity of the cannabis goods sold ; 34 Ensuring all cannabis goods sold are compliant with all rules set forth by the Bureau ; Approving or rejecting all procedures, which may impact the identity, strength, quality and purity of cannabis and cannabis products; Protecting any containers or packaging from contamination ; Ensuring all cannabis goods dispensed by Harvest’s facility satisfy all applicable packaging and labeling requirements ; Implementing sustainable and zero-waste practices whenever possible; Ensuring transparency of all operations; Ensuring that no unlawful sales transactions will be permitted or tolerated ; and Conducting and documenting a quality assurance audit of the Harvest’s daily inventory at least once a week to ensure that no cannabis goods have been improperly stored or have exceeded or past their sell -by date. Facility Requirements Harvest will occupy or construct a Facility that complies with all applicable state and local laws, regulations, ordinances, and other requirements, as well as the following national and international codes, as applicable: International Building Code (IBC); International Existing Building Code (IEBC); International Mechanical Code (IMC); International Plumbing Code (IPC); International Fire Code (IFC); National Electrical Code (NEC); International Energy Conservation Code (IECC); and Americans with Disabilities Act (ADA). The Facility will be equipped with land, infrastructure, and equipment that are, at minimum, sufficient for high-quality retail operations. Harvest and its premises will conform to all relevant fire codes and local land use regulations. The Facility will be outfitted with adequate lighting, ventilation, and temperature and humidity control equipment. Electrical System and Lighting Harvest’s electrical system will be installed by a licensed professional and in accordance with an approved electrical permit. Harvest’s electrical system will have sufficient capacity to 35 handle the actual electrical load. All electrical work and upgrades at the Facility will be performed with proper permitting and be connected to the electrical system in accordance with the equipment manufacturer’s recommendations. There will be safe and adequate lighting in all areas where cannabis and cannabis products will be stored or dispensed. Adequate lighting will also be provided in handwashing areas, toilet facilities, and dressing and locker rooms. All electrical control panel rooms will be marked with proper signage stating, “ELECTRICAL ROOM.” All electric circuits, panels, and disconnect switches will be easily accessible and clearly marked. The facility manager will ensure that the electrical system and lighting comply with all applicable state and local laws, regulations, ordinances, and other requirements, will be maintained in good repair, and will not present an electrical shock or fire hazard. Water Management Harvest’s water supply system will be installed by a licensed professional, originate from a system of regulated water, and will be sufficient to meet the demands of Harvest’s planned operations, including personal consumption. Harvest will derive its water supply from a source that provides a safe, potable, and sufficient supply of water to satisfy all the needs and requirements of the Facility. The facility manager will ensure that water management operations comply with all applicable regulations set forth by the Bureau, as well as all state and local laws, regulations, ordinances, and other requirements. Harvest will comply with all applicable IPCs regarding the erection, installation, alteration, repair, relocation, replacement, addition to, or use or maintenance of plumbing systems within the Facility. More information on water efficiency can be found in the Water Efficiency Plan included with this application. Water Supply and Plumbing Harvest’s piping system will be properly installed, receive adequate maintenance, and be of sufficient size and design to carry adequate quantities of water to the required places throughout the Facility. Toilet Facilities Adequate, readily accessible toilet facilities will be available to both employees and consumers. The toilet facilities will be maintained in a sanitary condition. The facility manager will perform or oversee a daily walk-through to ensure toilets, hot running water, toilet paper, 36 disposable towels, and soap are available at the Facility. Regular maintenance will be scheduled to ensure toilet facilities are maintained in a clean and functioning condition. Handwashing Facilities Easily accessible handwashing facilities with warm running water will be located in all toilet facilities and employee breakrooms. Instructive handwashing signage will be displayed at all handwashing facilities and may be posted in multiple languages, as needed. Water Quality Plumbing, bathrooms, and handwashing facilities will be properly maintained and be compliant with all applicable state and local laws, regulations, ordinances, and other requirements. All drain areas will be maintained and routinely inspected so that they do not contribute to the contamination of any inventory or contact surfaces by seepage, filth, or any other extraneous materials, or by providing a breeding place for pests. Harvest will ensure that all water used in the Facility meets, at a minimum, the United States Environmental Protection Agency’s water quality standards for public water systems. HEATING, VENTILATION , COOLIN G, AND AIR FILTRATIO N Heating, ventilation, cooling, and air filtration will be installed by a licensed professional and receive routine maintenance, as needed, to ensure proper functioning of all environmental controls installed throughout the Facility. The Facility will utilize equipment that adequately controls air temperature and humidity where cannabis and cannabis products will be stored. The Facility will be designed and installed for efficient utilization of energy in accordance with the International Energy Conservation Code (IECC). VENTILATION SYSTEM Harvest’s Retail Facility will be equipped with an odor ventilation system or other technology sufficient to maintain air quality in the Facility and prevent any odors associated with Harvest’s commercial cannabis operations from leaving the premises. Every occupied space will be ventilated by a natural or mechanical means in accordance with IMC. More information about this system is included in detail in the Odor Control Plan included with this application. 37 The facility manager will ensure the regular maintenance of such equipment, including regular cleanings and filter replacements. Odor control equipment will employ activated carbon filtration and be serviced according to manufacturer’s recommendations. VENTILATION INTAKE O PENING The location of air intake openings will comply with IMC. All intake fans will be equipped with ultraviolet and insect filters. Air intake openings that terminate outdoors will be protected with corrosion-resistant screens, louvers, or grilles. Openings in louvers, grilles, and screens will be sized in accordance with IMC, and will be protected against local weather conditions. Outdoor air intake openings located in exterior walls will meet the provisions for exterior wall opening protective measures in accordance with IBC. OUTDOOR AIR The minimum outdoor airflow rate will be determined in accordance with IMC. Ventilation supply systems will be designed to deliver the required rate of outdoor airflow to the breathing zone within each occupied space. DUCT SYSTEMS Duct systems used for the movement of air in heating, air-conditioning, ventilating, and exhaust systems will conform to the provisions of IMC. DEHUMIDIFIER EQUIPME NT If required, the Facility will be equipped with a dehumidifier system. Humidity controls set at or below sixty percent (60%) will be installed and maintained as necessary, according to manufacturer’s specifications, to control mold or pathogen growth. SIGNAGE Signage will conform to the rules set forth by the Bureau, the Department, and all applicable state and local laws, regulations, ordinances, and other requirements. If approved by Bureau, Department, and the City, a phone number and website may also be displayed to provide a resource for obtaining additional information about Harvest. Harvest’s hours of operation, as allowed by state and local requirements, will be conspicuously posted at all public entrances to the Facility. Signage will comply with all City Sign Regulations for size, area and type of sign. Specifically, signage will comply with City’s Sign Regulations for size, area and type of sign. Signage will not: Have internal illumination; 38 Include any portion of the cannabis plant;10 Promote the use of cannabis and cannabis products ; Be appealing to minors; Include prices of cannabis and cannabis products; Provide advertising visible to members of the public from any street, sidewalk, park, or other public place, including advertising utilizing any of the following media: o A sign mounted on a vehicle; and o A hand-held sign, human signage, or other portable sign. REQUIRED SIGNAGE Harvest will have signs at the premises, measuring no less than eight (8) by ten (10) inches11, that are clearly and legibly posted in a conspicuous location inside the Facility where they are visible to clients in the normal course of a transaction, stating: The sale of cannabis without a State license is illegal.” Smoking, ingesting, vaping, eating or consuming cannabis or cannabis products on this site or in a public place is prohibited."12 Harvest will have a sign at every entrance that will be clearly and legibly posted, in letters at least two inches high and clearly visible, with the following notice: ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID PHOTO ID REQUIRED."13 Compliance with Local a nd State Law Harvest has demonstrated, throughout this Business Plan and all other application materials submitted for a Commercial Cannabis Permit, how our operations will conform to loca l and state law. Harvest will, at all times, operate in compliance with the requirements of the SLO Municipal Code, state law, and all other applicable requirements, including but not limited to, building, plumbing, electrical, fire, hazardous materials, and public health and safety. Harvest will comply with all laws and regulations applicable to the type of use, and will comply with all permit, license, approval, inspection, reporting, and operational requirements of other local, State or other agencies having jurisdiction over our operation. Harvest will provide copies of 10 SLOMC 17.99.050 (D) (3) (a-c) 11 SLO17.99.050 (D) (3) (d) 12 SLO 17.99.050 (D) (3) (e) 13 SLO 9.10.230 39 other agency and department permits, licenses, or certificates to the City to serve as verification for such compliance. Commitment To Compliance Harvest’s Business Plan and proposed ope rations, and the procedures addressed herein, are compliant with: The Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”); The Bureau of Cannabis Control (“Bureau”) Regulations; The California Department of Food and Agriculture (“CDFA”) Regulations; The California Department of Public Health Manufactured Cannabis Safety Branch MCSB”) Regulations; The SLO Municipal Code; and All other applicable state and local laws, regulations, ordinances, and other requirements. Harvest and its employees further understand that proposed regulations set forth by the Bureau and the Department will soon be under review with the Office of Administrative Law, and that the final regulations are forthcoming. Harvest will diligently review and implement any changes that the final regulations address to ensure that the company’s proposed operations remain in compliance with all applicable regulations. Finally, Harvest understands that its Facility is subject to inspection to determine compliance with the rules above by representatives of the State of California and representatives of SLO. STANDARD OPERATING P ROCEDURES The Harvest team has the knowledge, experience and robust volume of standard operating procedures from which to pull and develop the best practices in the California cannabis industry. Harvest will develop and implement comprehensive standard operating procedures that address all operations, including retail operations and delivery to consumers. These procedures will be designed to hold both Harvest management and all employees accountable for Harvest’s operations and identify individual and collective responsibilities. Where applicable, the Harvest team will engage with the community of SLO to receive input as to various procedures that may impact the public. Harvest’s team is so familiar with California cannabis regulations and industry best practices that most of the written standard operating procedures will come as a second nature – compliance is ingrained in the day to day operations of everything Harvest does. However, 40 a copy of the standard operating procedures will be kept in each department. All managers will ensure their employees follow these established written procedures. Additionally, managers will be responsible for being aware of any problems which prevent compliance with these procedures and for recommending any required revisions or improvements. Harvest’s quality assurance policies and procedures will be compliant with the rules set forth by the Bureau, the Department and all applicable state and local laws, regulations, ordinances, and other requirements. The standard operating procedures will be easily accessible for Harvest personnel for reference and direction. Regulatory Complian ce Harvest’s retail operations will be subject to the rules set forth by the Bureau and all applicable state and local laws, regulations, ordinances, and other requirements, including building, zoning, employment, safety, fire, and environmental requirements. Harvest’s standard operating procedures will detail procedures for compliance. Harvest will operate all times in compliance with all applicable state and local laws, regulations, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the Commercial Cannabis Operator Permit or use permit or state license(s).14 Harvest will include adequate measures that address enforcement priorities for commercial cannabis activities including restricting access to the public and to minors and ensuring that cannabis and cannabis products are only obtained from and supplied to other permitted licensed sources within the State and not distributed out of State.15 Harvest operates with the understanding that the act, omission, or failure of an agent, officer, representative, employee, or other person acting for or employed by Harvest, within the scope of his or her employment or office, shall in every case be deemed the act, omission, or failure of Harvest, the licensee. Harvest will not transfer the permit to a location not specified on the its permit or operate at any place or location other than identified on the permit.16 Harvest will ensure that no person or entity will encumber, mortgage, lien, hypothecate, give, bequeath, sell, assign or transfer, by operation of law or otherwise, any portion of the ownership or control of a Harvest to any person who does not have a Commercial Cannabis Operator Permit from the City prior to the effective date of any action described in this sentence. Harvest will follow the City’s process laid on in SLOMC 9.10.120 to take an such action.17 ZONING COMPLIANCE 14 CSLOMC 9.10.170 15 CSLOMC 17.99.050 (E) (5) 16 CSLOMC 9.10.120 (A) 17 CSLOMC 9.10.120 (B) 41 In addition to the State permitting requirements and the requirements of Chapter 9.10 and Chapter 17.99 of the SLO Municipal Code.18 Harvest will obtain all SLO licenses, permits, and approvals required, including any discretionary approvals or building permits, prior to occupation of the structure. This also includes a cannabis use permit to conduct the commercial cannabis activity at the specific location. Harvest will also provide evidence satisfactory to the City of their legal right to occupy and to use the proposed location for the proposed use, together with the approval of a use permit from the City for cannabis activity at the location.19 Harvest’s Facility will meet the SLO Municipal Code requirements, compliance for accessibility including accessible parking, accessible path of travel, restrooms, and washing facilities . Harvest will be located at least one thousand (1000) feet from any pre- school, elementary school, junior high school, high school, public park or playground, six hundred (600) feet from any licensed day care center, and three hundred (300) feet from any residentially zoned area. Distance will be measured from the nearest point of the property line to the nearest point of the property line of the enumerated use using a direct straight - line measurement. Harvest will be separated from another other retail storefront at least 1,000 feet.20 If given the opportunity, Harvest will provide a use permit application that will include the following information21: 1. Site plan, floor plans, and a general description of the nature, square-footage, parking and type of cannabis activity(ies) being requested. 2. An operations plan including: a. A security plan to the approval of the Chief of Police, pursuant to criteria approved by resolution of the City Council, including but not limited to on - site security measures both physical and operational and, if applicable, security measures for the delivery of cannabis associated with the commercial cannabis business and payment of taxes and fees; b. Plan for restriction of access by minors; c. Employee safety and training plan; d. Odor, noise and light management plan; e. Estimated energy usage and energy efficiency plan; 18 CSLOMC 17.99.050 (A) (1) 19 CSLOMC 9.10.110 20 CSLOMC 17.99.050 (J) (2) (3-4) 21 CSLOMC17.99.050 (D) 42 f. Estimated water usage and water efficiency plans; and g. Waste management plan. h. For retail sales, provide an educational material dissemination plan. 3. Proposed signage. 4. An analysis that demonstrates neighborhood compatibility and a plan for addressing potential compatibility issues. 5. A vicinity map showing at least one thousand (1000) feet of surrounding area and the distances to the following uses: any pre- school, elementary school, junior high school, high school, public park or playground, six hundred (600) feet from any licensed daycare center, and three hundred (300) feet from a residentially zoned area. Youth centers do not require a buffer. Distance shall be measured from the nearest point of the property line of the site that contains the commercial cannabis activity to the nearest point of the property line of the enumerated use using a direct straight-line measurement. 6. Proof of ownership, option to purchase, (or lease agreement or option to lease with landowner's express written consent to the proposed commercial cannabis activity(ties) to be conducted on the premises) or other proof of right to apply for the permit at the location; 7. A list of all other uses on the property. OPERATOR AND EMPLOYEE COMPLIANCE All operators of Harvest will be required to meet the following qualifications: Operators must be twenty-one (21) years of age or older; Cannot have been convicted of any felony or offense referenced in Business and Professions Code Section 26057; or has been subject to fines, penalties, or sanctions for cultivation or production of a controlled substance on public or private lands or for unauthorized commercial cannabis activities as specified in Business and Professions Code Section 26057; or has had a commercial cannabis license suspended or revoked by the State of California or any city or county in any state, within the three years preceding the date the application is filed, or is ineligible to apply for a state cannabis license. All employees of operators of Harvest are required to be subject to a background investigation prior to performing any work. 43 As described in detail in the Security Plan, Harvest will notify the SLO Police Department within twenty-four (24) hours of discovering any of the following: Significant discrepancies identified during inventory. The level of significance shall be two percent (2%) of inventory or per State regulations, whichever is stricter; Diversion, theft, or loss, or any criminal activity involving Harvest or any agent or employee of Harvest; and Any other breach of security. RENEWAL OF PERMIT Harvest’s Commercial Cannabis Permit will be exercised only by the operator and shall expire upon termination of the business for which it was issued, or upon sale or transfer of ownership of Harvest, after first receiving City approval. Harvest understands that its permit will expire twelve (12) months after the date of its activation.22 Harvest will apply for an annual permit renewal at least sixty (60) but no more than one hundred and twenty (120) days prior to the expiration of the limited term permit.23 REVOCATION AND SUSPE NSION Harvest understands that Commercial Cannabis Operator Permit may be suspended or revoked if the City finds, after notice to Harvest and opportunity to be heard, that Harvest its agents or employees has violated any condition of the permit imposed pursuant to, or any provision of, this chapter.24 ENVIRONMENT, HEALTH & SAFETY COMPLIANCE Harvest will utilize appropriate measures in construction and operations to prevent the emissions of dust, smoke, noxious gases, or other substances that have the potential to impact local or regional air quality. Harvest will comply with all current and future state laws and regulations related to odor control and ventilation, in addition to any specific requirements for the particular use in Chapter 9.10 of the SLO Municipal Code. Harvest facility will be sited and operated in a manner that prevents cannabis odors from being detected offsite.25 Commercial cannabis activities shall not create offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic, or hazard s due to the use or storage of 22 CSLOMC 9.10.070 (D) 23 CSLOMC 9.10.080 24 CSLOMC 9.10.090 25 CSLOMC 17.99.050 (E) (3) 44 materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity living, working or lawfully present in the vicinity of the facility. Odor control devices and techniques will be incorporated into the Facility to ensure that odors from cannabis are not detectable off-site. The Facility will have sufficient odor absorbing ventilation and exhaust systems so that odor generated inside the facility that is distinctive to Harvest’s operations and is not detected outside of the Facility, anywhere on adjacent property or public rights -of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public. Harvest will install and maintain equipment, with the review and approval of the Building Official, including an exhaust air filtration system with odor control that prevents internal odors from being emitted externally or an air system that creates negative air pressure between the interior and exterior so that odors generated inside are not detectable on the outside of the site26. More information on Harvest’s environmental, air quality, and odor control measures can be found in the Air Quality Plan and Environmental Benefits Plan. Harvest will follow all of the security requirements in chapter 9.10 and any additional measures to ensure the safety of persons and to protect the premises from theft, as described in our Security Plan included with this application , and coordinate with the Chief of Police on security measures. Harvest’s security plan will be subject to the approval of the Chief of Police. No cannabis will be allowed to be consumed on the premises.27 No alcoholic beverages or tobacco will be sold, stored, given away, served, dispensed, or consumed on or about the premises.28 COMPLIANCE AUDITS Harvest will conduct quarterly compliance audits to ensure the Facility is, at all times, compliant with the rules set forth by the Bur eau and all applicable state and local laws, regulations, ordinances, and other requirements. The Safety and Security Compliance Director in coordination with the Chief Executive Officer, and managers, will conduct the compliance audits. INSPECTIONS AND M ONITORING 29 Harvest may be subject to inspection of its Facility by the local fire department, building inspector, code enforcement officer(s), the Bureau, or any other applicable governmental 27 CSLOMC 9.10.210 (A) (2) 28 CSLOMC 9.10.220 (A) 29 CSLOMC 9.10.140 (A) 45 entities to confirm that no health or safety concerns are presen t, among other authorized purposes. Harvest understands that the City Manager or his/her designee and any other City of SLO official or inspector charged with enforcing any provisions of Chapter 9.10 of the SLO Municipal Code may enter Harvest at any time during the hours of operation without notice for the purpose of inspecting for compliance with the SLO Municipal Code, the terms and conditions of the Commercial Cannabis Operator Permit or any other City permit or state license, including inspection of required recordings and records maintained. The right to inspect under this inspection includes the right to copy recordings and records . Harvest will have a plan set forth for these inspections and audits. All Harvest employees and staff will cooperate in a timely manner with the requirements of an inspection or audit. Harvest also understands that authorized individuals may also enter the location to obtain samples of cannabis and cannabis products to test for law enforcement and/or public safety purposes. Any samples obtained by the City of SLO will be logged, recorded, and maintained in accordance with City of SLO Police Department standards for evidence. At all other times, the City Manager or his/her designee may enter the Harvest location to obtain samples of cannabis upon reasonable notice, as otherwise authorized by law or pursuant to a warrant. Compliance will be monitored by the SLO police department, Code Enforcement staff and/or any other duly authorized agent of the City. Harvest understands that at least four compliance checks will be conducted during each twelve-month period.30 Health and Safety Inspections The Director of Retail Operations or the Safety and Security Compliance Director will regularly conduct health and safety inspections to ensure the Facility is, at all times, compliant with all applicable state and local laws, regulations, ordinances, and othe r requirements regarding the health and safety of its employees. PERSONNEL Harvest will have a sufficient number of employees possessing the correct skill -sets and experience needed to ensure the success of all retail operations. Harvest’s employee acquisition process, procedures for assessments, terminations, and transition policies will be detailed in the human resources department standard operating procedures. Harvest ’s personnel acquisition practices will be compliant with the rules set forth by the B ureau and all applicable state and local laws, regulations, ordinances, and other requirements. CANNABIS TRACKING TO PREVENT DIVERSION 30 CSLOMC 9.10.190 46 Harvest will have comprehensive operational procedures for inventory tracking, management, control and recordkeeping at the Commercial Cannabis Facility. The inventory manager will be responsible for developing and overseeing the implementation of written standard operating procedures for inventory control that ensure Harvest is capable of tracking the location and disposition of all cannabis goods at the Facility. All personnel must comply with these procedures as a condition of employment. The procedures will be updated as frequently as necessary to ensure inventory activities are always conducted in full compliance with rules set forth by the Bureau, the Department and all applicable state laws, regulations, and ordinances. METRC and MJ Freeway will be utilized in concert to maintain an accurate accounting of the status, location, movement, and ultimate disposition of all cannabis inventory that comes onto the Retail Facility. These electronic accounts of inventory will be reconciled daily and confirmed periodically with physical inventory counts to ensure no inventory discrepancy goes unnoticed. Inventory discrepancies will be promptly investigated and, when appropriate, reported to relevant authorities as described in this narrative. Basic Inventory Responsibilities The Safety and Security Compliance Manager is responsible for the implementation and enforcement of all inventory policies and procedures. The Safety and Security Compliance Manager, in coordination with the Director of Retail Operations, will regularly conduct inventory reviews, and comprehensive inventories of all cannabis goods in inventory, quarantine, awaiting delivery or disposal, and in transit. A seed-to-sale methodology must be utilized by Harvest at all times. The inventory manager must train all personnel to adhere to a seed -to-sale tracking methodology and will monitor implementation. If any flaw in existing procedures is discovered, the inventory manager will evaluate the issue, determine the steps for correction, and, as necessary, amend the procedures and re-train personnel. It is the responsibility of each employee to comply with the inventory procedures and all state and local requirements as instructed in training. Inventory Tracking Harvest’s inventory will be tracked with the use of two systems: the statewide track and trace system and Harvest’s selected third-party seed-to-sale system, MJ Freeway. Harvest will utilize electronic equipment that may include, at a minimum, the following: Radio-Frequency Identification Devices; Bar code identifiers; Scanning equipment and software; Cash registers; Desktop computers; 47 Mobile devices; and Cloud-based technologies that manage all aspects of the cannabis life cycle from seed-to-sale. Required Inventory Tracking Harvest’s inventory tracking system will track, at a minimum, the following: Start-up inventory; Cannabis products in storage; Cannabis goods acquisitions; Cannabis good sales; Cannabis good disbursements; Cannabis waste; Cannabis products sent to a distributor; Labeling, packaging, and other non-cannabis materials; Disposal of unusable cannabis goods ; Storage and transfer information; Information for all transfers out of and into inventory; and The name and identification number of the employee responsible for each action taken and date and time action took place. Third -Party Seed -To-Sale System MJ Freeway will be the Harvest’s third-party seed-to-sale inventory tracking and internal production recordkeeping system. The system will function as a virtual system for tracking cannabis product inventory as well as recording and tracking other data points of interest to Harvest. The system will be used in conjunction with the statewide track and trace system to help Harvest comply with inventory tracking requirements established under the state’s track and trace system. Once the statewide system supports interoperability with thi rd-party systems via a bi-directional application programming interface (“API”) and MJ Freeway obtains the necessary approvals for integration, MJ Freeway will be the sole point of required data entry into the statewide track and trace system. Harvest’s equipment will be fully integrated to process and maintain data. At minimum, the statewide track and trace system and MJ Freeway will be utilized to do the following: 48 Monitor business activities, inventories, transportation and sales transactions ; Record details about the inventory management activities in accordance with internal company policy; Enter required information regarding acquisition, inventory management, packaging and labeling, distribution, and sale in the statewide track and trace system in accordance with applicable statutes and regulations ; Maintain dates regarding from whom goods were received, the type and amount of goods received, the party who hold title to the goods and the UIDs or lot number of the goods; Produce an electronic history of production, quality assurance, and distribution for each batch or lot and inventory transfers or sales between licensees and locations ; Produce labeling for batches or lots in each stage of the retail process; and Generate reports on demand. TRACK AND TR ACE COMPLIANCE Harvest will create and maintain an active and functional account within the statewide track and trace system prior to engaging in any commercial cannabis activity, including the purchase, sale, transfer, transport, return, destruction, or disposal of cannabis goods under a retail or distribution license issued by the Bureau or a manufacturing license issued by the Department. Upon obtaining its annual licenses, Harvest will record all cannabis activity with other annual licensees. In compliance with state regulations and as a best practice, prior to commencing commercial cannabis activities under an annual license, including the purchase, sale, transfer, trans port, return, destruction, or disposal of cannabis goods, Harvest will create and maintain an active and functional account within the statewide track and trace system. Harvest will subsequently enter all commercial cannabis activities into the statewide track and trace system within twenty-four (24) hours of occurrence. DESIGNATED TRACK AND TRACE ACCOUNT MANAG ER Harvest will designate one (1) individual as Harvest’s designated statewide track and trace account manager. Harvest’s designated track and trace account manager will be the Safety and Security Compliance Manager. If the Safety and Security Compliance Manager has not completed the required training prior to Harvest receiving an annual license, the Safety and Security Compliance Manager will complete state-mandated training within five (5) days of Harvest’s license being issued. 49 The Safety and Security Compliance Manager may authorize additional Harvest owners and employees to obtain a track and trace system user account. The statewide track and trace account manager shall be responsible for ensuring that all track and trace system users are properly trained prior to being given access to the track and trace system. Each Harvest representative who obtains access to the track and trace system on behal f of Harvest will obtain his or her own unique track and trace system user log -on and password. Harvest representatives will only log into the track and trace system and submit information to the track and trace system using a log-on that has been assigned to that Harvest owner or employee. Harvest will maintain a complete and accurate list of all track and trace system users, including their full names and usernames. This list will be provided to all applicable state and local governmental entities, including, but not limited to, the Bureau , the Department, and the City upon request. Harvest will ensure that only authorized individuals will be able to access the track and trace system on behalf of Harvest. The statewide track and trace system account manager will maintain a complete and up-to- date list of all authorized Harvest system users. An employee’s system account will be kept up to date in the Statewide Track and Trace Authorized Users Log. Harvest will ensure that only authorized individuals are able to access the statewide track and trace system on behalf of Harvest by promptly cancelling user accounts in the event of employment terminations. This list will be provided to all applicable governmental entities, including, but not limit ed to, the Bureau, the Department and the City upon request. The statewide track and trace system account manager will monitor all compliance notifications from the statewide track and trace system, timely resolving any issues identified. Harvest will keep records of all compliance notifications received from the statewide track and trace system, detailing how and when the issue was resolved. If Harvest is unable to resolve the issue within three (3) business days of discovery, Harvest will notify all appli cable governmental entities, including, but not limited to the Bureau , the Department, and the City immediately. Within five (5) business days of establishing the Harvest statewide track and trace system account, the Safety and Security Compliance Manager will order UID tags. Harvest will record the receipt of the UID tags in the statewide track and trace system within three (3) business days of receipt. If Harvest is in operation at the time that access to the statewide track and trace system is granted, the Safety and Security Compliance Manager will ensure that all inventory is input into the system no later than thirty (30) days after receipt of the UID tags. Further, the Safety and Security Compliance Manager or their designee, will ensure that a sufficient supply of UIDs is available at all times. After UID tags have been received, all commercial cannabis activity at Harvest will be recorded in the track -and-trace system. The Safety and Security Compliance Manager will monitor all compliance notifications from the statewide track and trace system, timely resolving any issues identified. Harvest will keep 50 records of all compliance notifications received from the statewide track and trace system, detailing how and when the issue was resolved. Harvest account managers will not dismiss compliance notifications until the issue(s) identified in the notification has been resolved. EMPLOYEE ACCESS TO I NVENTORY TRACKING SY STEMS Harvest will authorize and distribute additional statewide track and trace system accou nt credentials to trained employees for the operation and maintenance of the Harvest account, as needed. Authorized users, including the account manager, will be required to attend and successfully complete initial training prior to being granted access to the system. All statewide track and trace system users will also be required to participate in ongoing training as required by the Bureau, the Department, or Harvest management. Each employee who obtains access to the statewide track and trace system on b ehalf of Harvest will be provided with unique system log-in credentials, consisting of a username and password. Harvest representatives may only log into the statewide track and trace system using a log-on that has been assigned to that Harvest representative and may not share their account credentials with any other person. Only authorized employees that have been trained may access the statewide track and trace system. Every authorized user of the statewide track and trace system will enter data into the system in a manner that fully and transparently accounts for all inventory management activities at the Facility. Harvest will track all employees’ actions while they are connected to the statewide track and trace system or while conducting other activities that consist of tracking the inventory of cannabis products. Every user of the statewide track and trace system will ensure every action completed while they are connected to the system or performing other inventory management activities involving cannabis and cannabis products will be compliant with the rules set forth by the Bureau , the Department, and all applicable state and local laws, regulations, ordinances, and other requirements. All Harvest employees will ensure the accuracy of all information entered in the statewide track and trace system. Any inaccuracies or omissions may be considered a violation by any applicable governmental entity, including, but not limited to, the Bureau , the Department or the City. Any employee who enters inaccurate information or omits information will be subject to immediate disciplinary action. USE OF TRACK AND TRA CE SYSTEM – RETAIL & DELIVERY All cannabis will be labeled with the unique identifier issued by the CDFA. Together, the CDFA, the Bureau and the Department prescribe standards for the reporting of information as necessary related to unique identifiers for the statewide track and trace program. 51 Harvest will accurately record all commercial cannabis activities in the statewide track and trace system. All transactions will be entered into the track and trace system within twenty- four (24) hours of the transaction. Harvest will only enter accurate information into the track and trace system and will correct any known errors in the information entered into the track and trace system by Harvest immediately upon discovery. Harvest will provide the Bureau and the City and all other applicable governmental entities with a record of its current inventory upon request. Harvest will enter the following events into the statewide track and trace system and maintain records of the following information for all cannabis goods the Commercial Cannabis Facility has in its inventory: Receipt of cannabis goods; Sale of cannabis goods; Packaging of cannabis goods; Return of cannabis goods; Destruction and disposal of cannabis goods; Laboratory testing and results; and Any other activity as required by the state licensing authorities. Harvest will record the following information for each above activity entered into the statewide track and trace system: Name and type of the cannabis goods ; Unique identifier of the cannabis goods; Amount of the cannabis goods, by weight or count; Date and time of the activity or transaction; Name and license number of other licensees involved in the activity or transaction ; If cannabis goods are being destroyed or disposed of, the name of the employee performing the destruction or disposal, the reason for the destruction or disposal, the name of the entity being used to collect and process cannabis waste, pursuant to the Bureau’s regulations; Description of any adjustments made in the statewide track and trace system, including, but not limited to: o Spoilage or fouling of the cannabis goods; and 52 o Any event resulting in exposure or compromise of the cannabis goods ; and Any other information as required by any other applicable state licensing authority. Harvest will enter the following events into the statewide track and trace system and maintain records of the following information for all cannabis goods sales: The first name and employee number of Harvest employee who processed the sale; The first name of the consumer, or primary caregiver, and Harvest -assigned consumer number for the person who made the purchase ; Unique identifier of the cannabis goods; The date and time of the transaction; A list of all cannabis goods purchased, including the quantity purchased ; The total amount paid for the sale, including the individual prices paid for each cannabis good purchased and any amounts paid for taxes ; and Other information required otherwise by law. Harvest’s Director of Retail Operations will ensure that if the point of sale system is not functional for any reason that all transactions are properly recorded manually and entered into the system as soon as it will be available, if allowed by the Bureau. If, for any reason, Harvest is not able to access the track and trace system, Harvest will create and maintain records detailing all transactions that would have been entered into the track and trace system. Harvest will document and notify the Bureau and the Department when the system access was lost, when it was restored, and the cause of the loss of access. During such time, Harvest will not transfer or deliver any cannabis goods. Upon the restoration of access to the track and trace system, Harvest will enter all transactions that occurred while access to the track and trace system was not available into the track and trace system within three days of access being restored. Harvest will only enter accurate information into the track and trace system and will correct any known errors in the information entered into the track and trace system by Harvest immediately upon discovery. TAX All sales transactions may be subject to applicable tax rates. If applicable, the proper tax rates will be programmed into each point of sale system to ensure that tax is collected. The Controller will ensure the proper collection of tax on all taxable products sold in the Faci lity. Purchasers of cannabis or cannabis products will be subject to a cannabis excise tax at the rate of fifteen percent (15%) of the average market price of any retail sale by a cannabis retailer. Harvest will provide all consumers with an invoice, recei pt, or other document that displays the cannabis excise tax separately from the list price, the price advertised in the 53 premises, the marked price, or other price and includes a statement that reads: “The cannabis cultivation and excise taxes are included in the total amount of this invoice.” Facility -Wide Loss of Access to Inventory Tracking Systems for Retail & Delivery Operations If at any time the Facility loses access to the statewide track and trace system for any reason, Harvest will prepare and maintain comprehensive records detailing all commercial cannabis activities that were conducted during the loss of access. Harvest will both document and notify all applicable governmental entities, including, but not limited to the Bureau and the City immediately of when access to the system is lost, when it is restored, and the cause for the loss of access. Once access to the statewide track and trace system is restored, Harvest will enter all commercial cannabis activity that occurred during the loss of access into the system within three (3) business days of regaining access. Harvest will not transport, transfer, or deliver any cannabis goods until all information has been recorded into the statewide track and trace system. If Harvest is unable to comply with any licensing requirements due to a disaster, Harvest will notify all applicable governmental entities, including, but not limited to the Bureau and the City of this inability to comply and request relief from the specific licensing requirement. F or the purposes of this section, “disaster” means fire, flood, storm, tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes. If Harvest’s premises needs to be vacated due to a disaster, Harvest will notify all app licable governmental entities, including, but not limited to the Bureau and the City in accordance with this paragraph in order to avoid the premises being deemed surrendered, abandoned, or quit under section 5022 of this division. If Harvest needs to move cannabis goods stored on the premises to another location immediately to prevent loss, theft, or degradation of the cannabis goods from a disaster, Harvest will move the cannabis goods without obtaining prior approval from all applicable governmental entities, including, but not limited to the Bureau under the following conditions: The cannabis goods are moved to a secure location where access to the cannabis goods can be restricted to the licensee, its employees, and contractors, Harvest notifies all applicable governmental entities, including, but not limited to the Bureau in writing that the cannabis goods have been moved and that the licensee is requesting relief from complying with specific licensing requirements pursuant to these procedures within 24 hours of moving the cannabis goods, The licensee agrees to grant all applicable governmental entities, including, but not limited to the Bureau access to the location where the cannabis goods have been moved to for inspection, and 54 The licensee submits in writing to all applicable governmental entities, including, but not limited to the Bureau within 10 business days of moving the cannabis goods a request for temporary relief that clearly indicates what statutory and regulatory sections relief is requested from, the time period for which the relief is requested, and the reasons relief is needed for the specified amount of time. If, for any reason, Harvest is not able to access the track and trace system, Harvest will create and maintain records detailing all transactions that would have been entered into the track and trace system. Harvest will document and notify all applicable governmental entities, including, but not limited to the Bureau when the system access was lost, when it was restored, and the cause of the loss of access. During such time, Harvest will not transfer any cannabis goods. Upon the restoration of access to the track and trace system, Harvest will enter all transactions that occurred while access to the track and trace system was not available into the track and trace system within three days of access being restored. Inventory Management Harvest will have comprehensive inventory management procedures, which will be compliant with the rules set forth by the Bureau , the Department, and all other applicable state and local laws, regulations, ordinances, and other requirements. In Harvest’s Retail and Delivery Facilities, these procedures will ensure strict control over Harvest’s cannabis goods inventory from delivery by a licensed distributor to sale or delivery to a consumer, or disposal as cannabis waste. Inventory management procedures will also include measures to prevent contamination and maintain the safety of the product. MJ Freeway will be Harvest’s primary virtual system to track cann abis product inventory. The seed-to-sale system will include data points for the different stages of commercial activity, including, but not limited to, processing, distribution, inventory, and sale. Harvest will ensure that each day’s beginning inventory, acquisitions, sales, disbursements, disposal of unusable cannabis products, and ending inventory are documented in the statewide track and trace system, as well as the third-party seed-to-sale system. The Director of Retail Operations will implement and enforce all inventory management policies and procedures. Supervisors will ensure accurate recording of all inventory transactions in their department. The Safety and Security Compliance Director will make all necessary changes to procedures and retrain employees immediately upon discovering a problem in inventory management procedures. RECEIVING INVENTORY Immediately upon arrival to Harvest’s Facility, two (2) employees will re -weigh, re-inventory, and account for on video and in the inventory track and trace system, all cannabis and cannabis products in the presence and under the supervision of at least one (1) manager. Containers will be physically examined for evidence of tampering. Each employee will confirm 55 by signature the accuracy of the shipping manifest, identification numbers, number of containers, the total inventory count received and the accuracy of the entry of the inventory into the track and trace system. Any discrepancy will be immediately reported to the Director of Security. The Director of Security will report the discrepancy to all applicable governmental entities, including, but not limited to, the Bureau and the City in compliance with the rules set forth by the Bureau and all other applicable state and local laws, regulations, ordinan ces, and other requirements. All shipping manifests shall be maintained electronically and made available for inspection by the all applicable governmental entities or law enforcement officers. RECEIVING SHIPMENTS OF INVENTORY – RETAIL & DELIVERY Harvest will only receive shipments of cannabis goods from a licensed distributor between 9:00 a.m. to 8:00 p.m., Pacific Time, unless an alternative delivery window is established by the Bureau or the City. Harvest will schedule shipments, either by scheduling appointments with specific licensed distributor or by establishing open vending times, during which any licensed distributor may drop off a shipment without a specific appointment. Harvest will not accept from a distributor cannabis goods that will not be packaged as they will be sold at final sale. Harvest will not purchase dried flower that will not already be packaged for final sale. Upon accepting a shipment of cannabis goods from a licensed distributor and completion of any required inspection, recording, and segregation, Harvest personnel will immediately place the cannabis goods in a locked room or safe within a limited access area to prevent diversion, theft, and loss. Any licensed distributor delivering cannabis and cannabis products to Harvest wil l provide the following information: The identity, quality, and cultivation conditions of cannabis and cannabis products ; The extent and type of testing conducted on the cannabis and cannabis products, including: o The type of test or examination used, if any, to determine the particular strain or cultivar of each lot of cannabis; o The quantitative levels of contained constituents and the type of testing used ; and o The absence or presence of specific classes of potential contaminants and the type of testing used. The information will disclose each of the following: Residual solvents; Pesticides; Yeasts, molds, and mildew; and Other microbiological contaminants. 56 If Harvest has reason to believe the information provided by the distributor is not accurate, Harvest will seek clarification or correction of any such information. SHIPMENT INSPECTION Upon receipt of a shipment, Harvest will verify and reconcile all cannabis and cannabis product package counts, labeling and actual weights and confirm that the cannabis goods have not exceeded their expiration or sell -by dates before accepting the cannabis and cannabis products. Harvest will ensure that the cannabis goods received are as described in the shipping manifest and will record acceptance and ackn owledgment of the cannabis goods in the statewide track and trace system. If there are any discrepancies between the type or quantity specified in the shipping manifest and the type or quantity received by Harvest, the inventory manager will record and document the discrepancy in the statewide track and trace system and in Harvest’s business records and complete any reporting requirements. Upon receipt of inventory, the inventory manager will ensure that the cannabis or cannabis product(s) will be properly labeled as required by the Bureau and all applicable state and local laws, regulations, ordinances, and other requirements before released for dispensing. REFUSAL OF INCOMING CANNABIS PRODUCT Harvest will refuse a shipment from a licensed distributor, in whole or in part, if any of the following determinations are made: Cannabis or cannabis product(s) are comprised of or contain prohibited ingredients, such as alcohol or tobacco; Cannabis or cannabis product(s) do not match the description or quantity indicated on the Shipping Manifest; Cannabis or cannabis product(s) are contained in damaged packaging that could have exposed the goods inside to contaminants ; Cannabis or cannabis product(s) packaging do not meet Bureau and all applicable state and local laws, regulations, ordinances, and other specifications ; Cannabis or cannabis product(s) labeling do not meet Bureau and all applicable state and local laws, regulations, ordinances, and other specifications ; and Cannabis or cannabis product(s) otherwise do not meet regulatory requirements. Refusal of delivery will be documented on the Shipping Manifest and a copy kept on file with Harvest’s cannabis acquisition records. TRACKING IN STATEWID E TRACK AND TRACE SY STEM 57 Transportation of cannabis and cannabis products to the licensed Commercial Cannabis Facility will only be conducted by a licensed distributor and its employees, except as otherwise allowed by state law. Harvest will not accept any shipment of cannabis and cannabis products without receiving a copy of a Shipping Manifest from the licensed distributor transporting the shipment. Shipping manifests generated by and maintained in the statewide track and trace system will include, without limitation, the following information: Variety and quantity or weight of cannabis goods shipped; Estimated times of cannabis goods departure and arrival; Variety and quantity or weight of cannabis goods received ; Actual time of departure and arrival; A categorization of the product; and The license number and the unique identifier pursuant to Section 26069 issued by the licensing authority for all licensees involved in the shipping process, including, but not limited to, cultivators, manufacturers, distributors, and retail facilities. The manifest will be securely transmitted to Harvest and all applicable governmental entities, including, but not limited to the Bureau. Once Harvest receives the shipment from a licensed distributor, Harvest will maintain an electronic copy of the shipping manifest for a minimum of seven (7) years and make all shipping manifests available upon request to the Bureau , the City and any state or local law enforcement officers upon request. Upon receipt of the transported shipment, Harvest will submit a record verifying receipt of and the deta ils regarding the shipment to all applicable governmental entities, including, but not limited to the Bureau and the City if required. TRACKING IN THIRD -PARTY SEED -TO-SALE SYSTEM Harvest’s third-party seed-to-sale system will be used in conjunction with the statewide track and trace system to keep a record of all cannabis and cannabis products acquired from a licensed distributor, including, but not limited to: The Shipping Manifest; Purchase order number; Date and time of acquisition; Description of the cannabis and cannabis products acquired, including the amount, strain, and batch number; Name and registration/license number of the licensed distributor ; 58 Name of the licensed distributor’s employee, and registration identification number, if applicable, distributing cannabis and cannabis products to Harvest; Name and employee identification number of Harvest employee receiving the cannabis and cannabis products; and Copies of purchase order, employees’ identification card, and other supporting documentation. SHIPPING AND RECEIVI NG AREAS Areas used to receive, load, and unload cannabis goods for retail sale and delivery will be secured in limited access areas. The Delivery Manager will ensure and maintain security in all loading areas. Dependent upon location and subject to layout of the Facility, Harvest may secure any loading area with: Sally port(s); Access control points will include the positive identification of all employees and service providers at all points of entry; An alarm system will provide silent alarm capability and full -coverage video surveillance of all loading areas ; Physical barriers guarding against unauthorized access to the area; and Locking vehicle access gates controlled by the Delivery Manager. PRODUCT AND INVENTOR Y STORAGE All cannabis and cannabis products in Harvest’s inventory will be securely stored after hours. The secure storage area must meet all requirements to prevent diversion, theft, and loss. No cannabis products will be stored outdoors.31 The areas used for secure storage of cannabis goods and, if applicable , cash will be within an access-controlled secure storage room in a limited access area of the Facility. Access to the storage room will be limited to the minimum number of authorized personnel for efficient operations. Harvest will maintain a list of all personnel with access to the storage room. The secure storage room will be time-controlled, meaning access will only be granted during 31 CSLOMC 9.10.190 59 regular business and shipment hours, except when manual override is necessary to provide access in the case of an after-hours emergency. Under no circumstances may any cannabis or cannabis product(s) be transferred or dispensed without following Harvest procedures and all the rules set forth by the Bureau and all applicable state and local laws, regulations, ordinances, and other requirements. DISASTER RELIEF If Harvest is unable to comply with any applicable governmental entities, including, but not limited to the Bureau’s licensing requirements due to a disaster, including a fire, flood, storm, tidal wave, earthquake, or other similar public calamity, Harvest will notify all applicable governmental entities, including, but not limited to the Bureau of its inability to comply and request relief from specific compliance requirements. If Harvest needs to move cannabis goods stored at the Facility to another location immediately to prevent loss, theft, or degradation of the cannabis goods from the disaster, Harvest may move the cannabis goods prior to applicable approval if the following conditions are met: The cannabis goods are moved to a secure location where they are accessible only to Harvest’s employees and contractors; Harvest notifies all applicable governmental entities, including, but not limited to the Bureau in writing within twenty-four (24) hours of moving the cannabis goods that a) the cannabis goods have been moved and b) Harvest requests relief from complying with specific requirements; and Harvest provides all applicable governmental entities, including, but not limited to , the Bureau access to the new secure location where the cannabis goods have been moved for inspection purposes. Harvest will submit a written request to all applicable governmental entities, including, but not limited to, the Bureau, within ten (10) business days of moving the cannabis goods, for temporary relief clearly stating which statutory and regulatory sections from which Harvest is seeking relief, the time period for which relief is requested, and the reasons relief is needed for the indicated amount of time. RETAIL AREA INVENTOR Y MANAGE MENT POLICIES CANNABIS GOODS DISPL AY Harvest’s cannabis goods display will only occur in the retail area during operating hours of the Facility. As described in our Retail Day-to-Day Operations section of this narrative, goods on display will not be displayed in windows or visible from the public right -of-way or from places accessible to the general public or readily accessible to consumers . However, cannabis goods on display they may be removed from their packaging and placed in 60 containers to allow for client inspection. Containers will not be readily accessible to patients and customers without assistance of an employee. The employee will remain with the client at all times that the container is in their possession. The cannabis goods removed from their packaging for display purposes will not be later sold or consumed but destroyed in accordance with Harvest waste management procedure and policies. FREE CANNABIS GOODS Harvest employees are prohibited from giving away any amount of adult -use cannabis, cannabis products, or cannabis accessories as part of a business promotion or other commercial activity. Further, Harvest prohibits representatives of other companies or organizations from providing free samples to individuals on the licensed retail premises. Free cannabis goods may be provided to medicinal cannabis patients under the following conditions: Free cannabis goods are provided only to a medicinal cannabis patient or primary caregiver for the patient in possession of a valid identification card issued under Section 11362.71 of the Health and Safety Code; The cannabis goods meet all required lab testing requirements ; The cannabis goods are placed within an opaque package; The purchase is applied toward the consumer’s daily limit ; and The purchase is recorded in Harvest’s inventory records and in the track and trace system. CONSUMER RETURN OF C ANNABIS GOODS Harvest will destroy all cannabis goods that are returned or abandoned at the Retail Facility. No returned cannabis goods will ever be returned into Harvest’s inventory nor re-sold to a consumer. REQUIRED INVENTORY R ECONCILIATION SCHEDU LE Harvest will, at a minimum, conduct the following inventory reconciliation at the Facility: Daily inventory reconciliation – reconciling statewide track and trace system's beginning and ending cannabis inventory. Weekly inventory reconciliation – conduct and document a reconciliation of complete inventory. 61 Semi-annual inventory reconciliation – complete inventory hand count with second count. Annual inventory reconciliation – complete inventory hand count with second count witnessed by inventory manager. INVENTORY RECONCILIA TION FOR RETAIL & DELIVERY OPERATIONS Harvest will perform a reconciliation of its inventory at least once every fourteen (14) days. Harvest will verify that its physical inventory of cannabis goods matches Harvest’s records pertaining to inventory. Harvest will also reconcile its physical inventory with the records in the statewide track and trace system every fourteen (14) days. The result of inventory reconciliations will be retained in Harvest’s records and will be made available to all applicable governmental entities, including, but not limited to the Bureau upon request. If there is any evidence of theft, diversion, or loss, Harvest will notify all applicable governmental entities, including, but not limited to the Bureau and law enforcement, in writing, within twenty-four (24) hours. The notification will include the date and time of the incident’s occurrence, the name of the local law enforcement agency that was notified and a description of the incident, including, where applicable, the item(s) that were taken or lost. If a significant discrepancy is discovered between Harvest’s physical inventory and Harvest’s inventory records, Harvest will notify all applicable governmental entities, including, but not limited to, the Bureau and law enforcement, in writing, within twenty-four (24) hours. A significant discrepancy in inventory means a difference of at least $5,000 or two percent 2%) of the average monthly Harvest sales, whichever is less. Average monthly sales will be calculated by taking a per month average of the total Harvest sales for the previous six (6) months. If Harvest is in operation for less than six (6) months, only the months in which the Retail Facility has been in operation will be used to determine average monthly sales. Harvest will maintain an inventory log containing inventory tracking information about each batch. The inventory log will contain the following information for each batch: The manufacturer or cultivator’s name and license number, who provided the batch ; The date of entry into the distributor’s storage area; Unique identifiers for the batch; A description of the cannabis goods with enough detail to easily identify the batch; The weight of or quantity of units in the batch; Where on Harvest’s premises the batch will be kept ; and Best-by, sell-by, or expiration date of the batch, if any. The inventory manager will: 62 Assign the same two (2) employees, at least one (1) will be the Director of Retail Operations or the Safety and Security Compliance Director, to recurring inventory groups whenever possible; Ensure that inventory audits are completed on schedule with minimal impact on regular operations; Review any discrepancies and document any adjustments made in the statewide track and trace system; and Report any discrepancies identified during inventory audits to the Safety and Security Compliance Director. Harvest will follow good handling practices when conducting inventory audits to minimize risks of microbial contamination. Employees conducting inventory audits will be free of infectious illnesses. All inventory audits will be recorded in the statewide track and trace system and reconciled with existing inventory records. INVENTORY DISCREPANC IES FOR RETAIL & DELIVERY OPERATIONS Any discrepancy in weight or package reconciliation will be identified and reported. Discrepancies identified during inventory reconciliation, including dispensing errors, diversion, theft, loss, or any criminal action will be reported to the inventory manager and the Safety and Security Compliance Director. Additionally, the Safety and Security Compliance Director will determine where the loss has occurred and document all corrective actions. The Safety and Security Compliance Director or Director of Retail Operations will notify the Bureau and local law enforcement within twenty-four (24) hours after the discovery of any reportable incident, as defined by the Bureau. Reportable incidents include, but will not be limited to: Theft or physical loss of cannabis and cannabis products ; Significant discrepancies identified during inventory; Diversion, theft, loss, or any criminal activity pertaining to the retailer’s operation; and Diversion, theft, loss, or any criminal activity by any agent or employee of the retailer pertaining to the retailer’s operation. The notification to the Bureau will be in -writing and will include: The date and time of occurrence of the theft, loss, or criminal activity; The name of the local law enforcement agency that was notified ; and A description of the incident, including, where applicable, the item(s) that were taken or lost. 63 EMPLOYEE ACCESS TO I NVENTORY TRACKING SY STEM Only authorized employees that have been trained may access Harvest’s internal inventory tracking system. Employees will use their own credentials to log into the inventory tracking system and will be strictly prohibited from logging in to the system using a nother person’s credentials. Every authorized user of the inventory tracking system will enter data into the inventory tracking system in a manner that fully and transparently accounts for all inventory management activities at the Facility. The inventory manager will attend and successfully complete all training required by Harvest’s inventory tracking system provider. The inventory manager will authorize and train new users in the inventory tracking system before they will be allowed to access or input, modify or delete any information in the inventory tracking system. An employee’s inventory tracking system account will be kept up to date in the Inventory Tracking System Authorized Users Log and be deleted once an employee is no longer employed at Harves t. Harvest will track all employees’ actions while they are connected to the inventory tracking system or while conducting other activities that consist of tracking the inventory of cannabis products. Every user of the inventory tracking system will perform inventory management activities involving cannabis and cannabis products in compliance with the rules set forth by the Bureau and all applicable state and local laws, regulations, ordinances, and other requirements. All employees will ensure the accuracy of all information entered in the inventory tracking system. Any inaccuracies or omissions may be considered a violation by the Bureau. Any employee who enters inaccurate information or omits information will be subject to disciplinary action. INVENTORY DOCUMENTAT ION Harvest will maintain an accurate record of its inventory that render, balance and evidence all activities (from receipt of sale or disposal) regarding all cannabis and cannabis products in its possession. Harvest will provide all applicable governmental entities, including, but not limited to, the Bureau with a record of its current inventory upon request. Harvest will keep a record of the following information for all cannabis goods Harvest has in its inventory: A description of each item in Harvest’s inventory. This description will be such that the cannabis goods can easily be identified ; An accurate measurement of the quantity of the item; The date and time the product was received by Harvest ; The sell-by or expiration date on any cannabis goods, if any; 64 The name and license number of the licensed transporter that delivered the cannabis goods; The name and license number of the licensed distributor that provided the cannabis goods to Harvest; and The price Harvest paid for the cannabis goods, including taxes, delivery costs, or any other costs. Harvest will keep and maintain the following records in compliance with the rules set forth by the Bureau, the City and all other applicable state and local laws, regulations, ordinances, and other requirements: Records relating to branding, packaging, and labeling; Inventory logs and records; Transportation bills of lading and shipping manifests for completed transports and for cannabis goods in transit; Vehicle and trailer ownership records; Records relating to destruction of cannabis goods and products ; Laboratory-testing records; Warehouse receipts; and Records relating to tax payments collected and paid under Sections 34011 and 34012 of the Revenue and Taxation Code. All shipping manifests will be maintained electronically and made available for inspection by all applicable governmental entities or law enforcement officers. Recordkeeping Harvest’s years of experience tracking and securing cannabis goods and maintaining comprehensive, compliant records of all activities pertaining to the Facility’s operation will ensure the compliant recordkeeping is maintained at Harvest of SLO. Harvest fully understands that the Facility, our operations, our grounds, and our delivery vehicles are subject to inspection to determine compliance with the rules of the state of California and the City of SLO. Harvest will have a plan set forth for these inspections, like we do for all of our other licensed retail facilities. All company employees will fully cooperate with the requirements of such inspections or audits. Harvest will maintain complete, accurate, current, legible, and comprehensive books and records on-site at its Retail Facility and on a secure cloud storage system. Harvest’s standard operating procedures will detail the maintenance of accurate records of commercial cannabis activity and include measures for addressing and reporting any lost or unauthorized 65 alteration of records. Our recordkeeping will include all necessary books and records required to render a full and complete account of all commercial cannabis operations at Harvest’s Facility for the year-to-date and the seven (7) years prior, as required by the Bureau, in hard or electronic copy.32 These records may be inspected by the City in accordance with all applicable City laws, ordinances, and resolutions. All required records, identified by the licensing authorities, will be secured in a storage area where the records are protected from debris, moisture, contamination, hazardous waste, fire, and theft. INSPECTIONS AND AUDI TS OF RECORDS The Bureau, the City and other governmental ent ities may examine Harvest’s records and inspect the premises as the Bureau, or a state or local agency, deems necessary to perform its duties. All inspections and examinations of records will be conducted during standard Harvest business hours or at any other reasonable time. The City, Bureau, and any other government official conducting inspections to determine compliance may arrive at Harvest’s Facility without prior notice. Harvest employees will be properly prepared and trained to quickly and efficiently accommodate all requests by governmental officials and inspectors. The City or the Bureau, while conducting its inspection, has the right to copy any recordings or records.33 At no time will Harvest, our managers, or our employees impede, obstruct, or interfere with a City or Bureau inspection, the City or the Bureau’s review or copying of records and recordings (including audio and video recordings). At no time will Harvest, our managers, or our employees conceal, destroy, alter or falsify any recordings or records related to the Facility and our operations.34 Harvest will promptly provide and deliver records to all applicable governmental entities upon request. Harvest will keep required records by all applicable governmental entities on the premises for access by Harvest and all government agencies for purposes of inspection. Records will be kept in a manner that allows the records to be produced for all applicable governmental entities, including, but not limited to the Bureau and the City, at Harvest in either hard copy or electronic form. All applicable governmental entities, including, the Bureau and the City, upon request, will have full access to all Facility records and recordings. Harvest will keep accurate records, follow accepted cash handling practices and maintain a general ledger of cash transactions. Harvest will allow the City and the Bureau to access our books, records, accounts and any and all data relevant to our retail and delivery operations for purposes of conducting an audit, examination, or inspection to determine compliance with the SLO Municipal Code, the Bureau’s regulations, and all other applicable laws and regulations. Books, records, accounts and all relevant da ta will be produced no later than 32 CSLOMC 9.10.130 (F) 33 CSLOMC 9.10.140 (D) 34 CSLOMC 9.10.140 (B) 66 twenty-four (24) hours after receipt of the City’s request or within a reasonable time as authorized in writing by the City.35 All records and data regarding cannabis tracking, inventory data, and gross sales will be recorded and properly maintained in the statewide track and trace program, METRC, and Harvest’s third-party point-of-sale system, MJ Freeway. Together, these programs, will give the City and the Bureau a complete picture of Harvest’s inventory and transactions for the year to date and seven (7) years prior. Upon request, Harvest will produce historical transactional data for the City’s review in a format compatible with the City’s software, including Excel, Access, or another software designated by the City Manager. All information provided to the City will be confidential and will not be disclosed, except as may otherwise be required by law.36 ANNUAL AUDITS 37 Annually, Harvest will contract with an independent certified public accountant to conduct an audit of our financial operations for the previous fiscal year. This completed and certified audit will be filed with the City Manager or his or her designee and will include, but not be limited to, a discussion, analysis, and verification that all records required to be maintained by the City are properly maintained and available in Harvest’s records. The information contained in the audit will be made available in a format compatible with programs and software used by the City, including Excel, Access, or other software designated by the City Manager. PATIENT AND MEDICAL RECORDS For medical customers, Harvest will maintain records using only the State of California Medical Marijuana Identification Card number issued by the County or the County’s designee, pursuant to California Health and Safety Code Section 11362.7 et seq., or a copy of a written doctor’s prescription or recommendation, as a protection for the confidentiality of the medical cardholders. Harvest will track when patients’ medical cannabis recommendations and/or identification cards expire and require patients to update his or her records with a valid physician recommendation or State Medical Marijuana Card before purchasing medical cannabis goods from the Facility. The Facility will maintain patient records in a manner to protect confidential information in the records if the records contain information protected by applicable law, including but not limited to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and Public Law 104 -191. 35 CSLOMC 9.10.130 (A) 36 CSLOMC 9.10.130 (E) 37 CSLOMC 9.10.130 (B) 67 Information contained in a physician’s recommendation and received by Harvest, including, but not limited to, the name, address, or social security number of the patient, the patient’s medical condition, or the name of the patient’s primary caregiver is hereby deemed “medical information” within the meaning of the Confidentiality of Medical Information Act (Part 2.6 commencing with Section 56) of Division 1 of the Civil Code) and will not be disclosed by Harvest except as necessary for authorized employees of the State of California or any city, county, to perform official duties pursuant to this chapter, or a local ordinance. Patient - specific retail transactions are confidential and not a public record. Harvest will vigorously implement privacy and security rules of the Health Insurance Portability and Accountability Act (HIPAA) to include protecting the privacy of the patient's medical health information, personal identifying information, financial information, purchases, and all other patient - related information. Unless requested by the Bureau, required under law, or pursuant to a court order, all information held by Harvest about patients and employees is confidential and will not be disclosed without the written consent of the individual to whom the information applies. RECORDS MAINTAINED The Chief Operating Officer and Director of Retail Operations, in coordination with all managers, will ensure all documentation will be maintained in accordance with Harvest’s procedures and with the rules set forth by the Bureau, the City, and all applicable state and local laws, regulations, ordinances, and other requirements. All records and logs described and required herein will be maintained and reviewed by the appropriate manager. Required records and logs, which will be kept onsite and, where indicated, on a secure cloud storage, include: Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration under Title 18 California Code of Regulations sections 1698 and 4901; Personnel records, including each employee’s full name, social security, or individual tax payer identification number, date of beginning employment, and date of termination of employment, if applicable; Training records, including but not limited to the content of the training provided and the names of the employees that received the training; Contracts with other licensees regarding commercial cannabis activity; Permits, licenses, and other local authorizations to conduct Harvest’s commercial cannabis activity; o Harvest’s state retail license will be prominently displayed at the Retail Facility where it can be viewed by state and local agencies; o SLO City Commercial Cannabis Operator Permit; 68 o State Seller’s Permit; and o Certificate of Occupancy. Security records, including but limiting to the following: o Employee Access Control Logs; o Visitor Registration Logs; o Authorized Visitor Access Control Logs; o Incident Logs and Post-Incident Reports; o Alarm system records; and o Surveillance system records and recordings. Facility records, including but limiting to the following: o Facility Maintenance Logs; o Equipment List; o Equipment Cleaning and Maintenance Logs; o Waste Disposal Logs; and o Material Safety Data Sheets, if any. Retail activities: o Consumer and patient profile records; o Sale Error and Discrepancy Report; o Statewide Track and Trace System Authorized Users Logs; o Loss of Access to Statewide Track and Trace System Logs; o All records related to inventory, the statewide track and trace system METRC), and Harvest’s third-party point-of-sale tracking system, MJ Freeway; o All storage, sale, and transfer of inventory records. Inventory records will be maintained within METRC and MJ Freeway;38 o Shipping Manifests, detailing shipments made to the Facility; o Delivery Logs, including a full list of deliveries, addresses, and the amount of cannabis goods delivered; 38 CSLOMC 9.10.130 (C) 69 o Delivery Request Receipts; o Inventory Ledgers; and o Stop Logs. Quality Assurance: o Product Complaint Forms. Harvest will maintain a log of patient or customer complaints and will make the log available to the City upon request. The log will contain at a minimum: the date of the complaint, the complaining member’s identification number or reference to his or her written recommendation, the nature of the complaint, and the action taken by Harvest to address the complaint; and o Withdrawal and Recall Log. A current register of the names and contact information (including the name, address and telephone number) if all employees currently employed by Harvest, which Harvest shall disclose to the City and all other applicable governmental entities, upon request. All other records required by the Bureau or the City. All logs, forms, and records will include a date and time stamp, as well as the name and identification number of the employee completing the action being documented. Harvest will implement and maintain employee training procedures and policies including training on the standard operating procedures regarding patient confidentiality that will follow HIPAA guidelines, including, at a minimum, the following: Prohibit any patient information from being shared or discussed outside of the Facility or in the presence of other patients, vendors, or any unauthorized personnel; Prohibit use of video recording or photography on the premises ; Inform patients of privacy policy and complete and distribute the appropriate forms ; Ensure any paper documentation containing patient identifiable information is kept in a secured location at all times or shredded immediately before discarding ; Ensure electronic information is protected in accordance with Harvest’s information technology security standard operating procedures ; All rules set forth by the Bureau and other applicable state and local laws, regulations, ordinances, and other requirements for patients ; Respecting the rights and responsibilities of patients, including: o How patients can expect to be treated by employees of Harvest ; o Information that each patient will be required or requested to provide; o How to provide feedback and suggestions, including procedures for communicating commendations and complaints ; and 70 All other applicable policies. Protected Information Access to protected information will be restricted to essential employees only. Our electronic storage system, for the retrieval of patient and consumer information or other records guarantees information confidentiality and HIPAA compliance. The system provides safeguards against erasures and unauthorized changes in data after the information has been entered and verified, allows for a true audit trail and indicates any dates, edits or deletions to patient records. The system can be reconstructed and retrieved within three (3) business days if there is a computer malfunction or accident resulting in the database’s destruction. Access may be granted to representatives of the Bureau and other government officials, if necessary, to perform his or her official duties. Examples of protec ted information include: Security and cash management procedures; Asset and inventory lists; Network data; Floor plans of critical areas; Password and code records; Patient and consumer records; and Employee records. PROPOSED RETAIL FACI LITY Harvest has secured a proposed Retailer location (Storefront & Delivery) at 309 Higuera Street (APN #: 002-501-006). Harvest has an executed, binding Letter of Intent to purchase the property upon licensure by SLO, demonstrating our control of the site to ensure a successful and timely transition from being awarded a license to opening the business. (See attached LOI on Pg. 108) The property will be 100% owned by Harvest of SLO LLC. Both 309 and 311 Higuera St. are included in the purchase agreement and will be owned by Harvest of SLO, however, retail cannabis sales will only take place inside the building located at 309 Higuera St. proposed property is in compliance with the requirements of Chapter 9.10 and Chapter 17.99 of the SLO Municipal Code, located in the Cannabis Business Zone and zoned C-S (Service Commercial). A Retailer Storefront is allowed in the C -S zone with a Director’s Use Permit and a Retailer Delivery is allowed in the C -S zone with a Planning Commission Use Permit approval. The proposed location fronts an arterial street. For detailed information on the major improvements Harvest will commit to regarding the property and surrounding area, please see the Community Benefits Plan included with this application. 71 The proposed property is a vacant one-story retail free-standing building, which was built in 1937. It has been improved with seismic retrofitting and commercial updates in 2014. The total square footage of the interior space is 1,360 square feet, and the total parcel size is 3,158 square feet. The building has a recently installed ADA accessible bathroom, a new exterior front and rear door, and new energy efficient lighting and power distribution. The proposed location is excellent for customer access with high visibility and between 15,000 – 20,000 average daily traffic passing the storefront. The location is adjacent to the two freeway interchanges which are the major entries into SLO, with transit and pedestrian links to downtown and other shopping areas. Higuera Street serves as the principal commercial street connecting downtown to the City’s next largest retail area on Madonna Road. This section of Higuera Street once served as the “El Camino Real.” It’s role as the main route through town, prior to the freeway, is reflected in a rich history and interesting mix of land uses. It is within easy strolling distance to the creek, open spaces, parks, restaurants and cafes, professional offices, and the live theater on South Street. Majestic Sycamore trees still grace the Higuera Street frontage. 72 The space is the original California Department of Motor Vehicles and CHP office for SLO. The location is just outside of downtown SLO, in a historic building alongside many other new businesses. The Mid-Higuera Area of SLO is poised for commercial re-development and lies immediately adjacent to SLO’s downtown core. The Mid -Higuera Enhancement Plan from 2001 includes public policies and public investment strategies, of which many have already been implemented, that aim toward a more attractive and functional future for this area. The area includes a new mix of uses which will revitalize the area through innovative flood protection solutions, enhanced land use compatibility, improved vehicle and pedestrian circulation, historical building rehabilitation and architecturally enhanced streets and buildings. The area is continuing to implement public improvements to the bridges and riparian areas near the creek way, circulation and street improvements to widen Higuera Street and improve bicycle and pedestrian access, and additional parking, public transit stops, and City parks. The Enhancement Plan describes street improvements to Higuera Street, including improved sidewalks, the addition of public artwork, street trees, ben ches, and decorative lighting. Cars will flow smoothly due to the widening of the street and a new landscape median has transformed and softened the appearance of the streetscape. Harvest has developed plans and has the necessary capital to support a vibrant business within the City that is in line with the 2001 Mid -Higuera Street Enhancement Plan. Harvest will perform major improvements, including façade rehabilitation, building expansion, site improvements, removing visual blight and other investments in this underutilized and vacant site. Renovations on the existing building will be done using, to the greatest extent possible, local contractors and vendors. All supplies and equipment expenses (non -labor, non-rent expenses) will be sourced within 90 miles of the proposed location. The proposed location can accommodate the required number of parking spaces and safe and convenient access for customers and employees. The proposed facility renovation includes extensive and major improvements to the exterior of the existing building, including: New secure exterior door with glazing on the windows; Composite wood vertical cladding on the front exterior; 4’x8’x1/8” hot rolled steel plate with cut -out logo; LED recessed down-lights with black trim on front exterior; Entrance canopy with hot-rolled steel plates, finish for fascia, black paint finish underside, providing sun protection; New exterior paint with orange and light grey colors; Exterior signage pin mounted black halo-lit letters; Other than main entrance, exterior doors replaced with steel doors and frames painted to match the adjacent color; and All window frames painted to match adjacent color. 73 SCHEDULE FOR BEGINNI NG OPERATION Harvest has developed a comprehensive schedule for beginning operations at our location in SLO, 309 Higuera Street. Harvest has executed a binding letter of intent to purchase the property, if awarded a City license. In order to make this schedule easily digestible, Harvest has included in this application a visual timeline illustrating the steps it will take to begin operations. (See attached timeline on pg. 78) Following the application process set out by the City and after approval and issuance of our Commercial Cannabis Business Operator Permit from the City, Harvest will apply for and obtain a City Use Permit for Harvest’s chosen property, 309 Higuera Street, and all required building permits and approvals for improvements to the existing Facility. Then, Harvest will apply for and obtain a City Business License and Tax Certificate and obtain a state annual license from the Bureau of Cannabis Control prior to commencing operations. The City estimates application review will begin in February and decisions regarding the top applicants will be made in late February to early March. In March 2019, Harvest will finalize plans for the proposed building and begin preparing our Use Permit application, as outlined in SLO Municipal Code Chapter 17.99, in coordination with the Community Development Department. Harvest has estimated this process to take about three (3) months and will work with the City to receive our Use Permit in a timely fashion. Due to the discretionary review of the commercial cannabis operation, the process of undergoing a California Environmental Quality Act (CEQA) review for our proposed commercial cannabis use will be accomplished through the City’s Use Permit review. At the same time Harvest is preparing the City’s Use Permit application, Harvest will prepare its State Annual Retail Storefront application with the Bureau of Cannabis Control for its annual state license. The state annual licensing process timeframe is difficult to determine but could likely take approximately four (4) to six (6) months. Starting in June 2019, or as soon as the Use Permit is received, Harvest will apply for and obtain all necessary permits, approvals, and licenses to begin construction, including all necessary building and construction permits with Building & Safety, and permits for electrical, plumbing, and fire. Harvest will also set up utility services by setting up an account and starting service with SLO’s Utilities Department for wastewater services and water, PG&E’s Solar Choice Program for electricity, and San Luis Garbage for waste disposal. Harvest will solicit bids from local contractors to provide the necessary construction and improvement services and secure a contractor by the Summer of 2019. By August 2019, Harvest hopes to have all the necessary approvals in place to prepare the site for construction and improvements and for construction to begin. 74 Harvest estimates that construction and major Facility improvements will commence in August 2019, starting with site preparation. Any new floors, walls, and roofing will be framed out with wood, then finished with plywood to seal off the inside from the outside. Next, there will be installation or upgrading of plumbing lines and infrastructure, electrical systems and wiring work, and HVAC systems. The HVAC system will include an air filtration system and carbon filters to control odors emanating from the commercial cannabis use. Once that work is done, the walls will be closed up with insulation and drywall. The drywall will then be sanded, primed, and painted. At the same time, any additional flooring will be laid and installed. The existing Facility’s façade will be significantly upgraded and will appear similar to renderings of other Harvest retail facilities, as noted in the Community Benefit Plan included with this application. Harvest will remove any existing visual blight on the property through our upgraded interior and exterior developments to the Facility and Harvest’s improved Facility will help to revitalize the Walker Street and Higuera Street intersection. Finally, the parking lot will be re-paved and the lot landscaped. The parking lot onsite will contain the required number of parking spaces per the City’s Municipal Code and will be conveniently located for easy customer and employee access to the Facility. Once construction and improvements are complete, the Facility will be finished with fixtures, hardware and furniture. These supplies will be procured from local vendors. The Facility will have an IT infrastructure installed to support internet access and security system capacity. Security equipment will then be installed, including cameras, lighting, alarms, locks, and other security hardware. Once all security equipment is in place, Harvest will invite the Chief of Police to inspect and review the Facility for his approval. During this time, Harvest will ensure it has received its state annual retail license from the Bureau. Once everything has been installed and the Facility is ready to begin operations, Harvest will invite the City to perform a final inspection, grant a Certificate of Occupancy, and provide approval to begin operations. Harvest will also apply for and obtain a business license and tax certificate with the City during this timeframe. Upon final approval, Harvest will r ecruit from local community sources, as described in the Community Benefits Plan, to hire staff. Employees will then be trained on all standard operating procedures. During this time, Harvest will purchase a delivery vehicle, register it with the state, and outfit it with the necessary security equipment. We will re-review delivery security procedures and vehicle security equipment with the Chief of Police. Harvest will also contract with a local security guard company to prepare security guards to begin protecting the Facility. The state Track-and-Trace system, METRC, will be installed on all computers, as well as our inventory management system, MJ Freeway. Once installed, staff will be trained on the proper use of these systems. As soon as Harvest has the necessary personnel in place, security systems operating, and Facility completely constructed, we will perform a rehearsal to run through a business day 75 and ensure staff follows all standard operating procedures. All systems will be tested to make sure they are in good working order, including video surveillance system, alarm system, and the Track-and-Trace and inventory management systems. As soon as all of the local approvals and licenses are obtained in addition to our state annual license from the Bu reau, the Retail Manager will place the first orders of cannabis goods from licensed commercial cannabis facilities for the Facility’s inventory. Upon receipt, all cannabis and cannabis products will be inspected for quality control and entered into the in ventory management system. With the timeline above, we expect to be ready to open the Retail Facility for sales and in the last quarter of 2019. 76 2019 Commercial Cannabis Business Operator Permit Submission January 2019 Conduct Community Outreach San Luis Obispo Operator Permit Processing and Review February –March 2019 Speak to community organizations and charities regarding proposed operations and commitment to annual giving. Prepare & Submit Application Phase 2 Phase 3 Phase 4 Prepare and Submit Use Permit to Community Development Department Use Permit application will be prepared in accordance with San Luis Obispo Municipal Code Chapter 17.99. Use Permit Pre -Construction March –May 2019 Selected in the top 3! Receive Operator Permit from City Phase 1 Undergo CEQA Review Work with Community Development Department for Final Approval Finalize plans for building and site improvements and construction for City’s review. Receive Use Permit. Obtain City Business License. Work with Building & Safety Submit plans and forms for building and construction permits. Permits Apply for and obtain permits for electrical, plumbing, and fire. Final Preparation for Construction and Improvements May –July 2019 Arrange and Set up utility services with San Luis Obispo’s Utilities Department for wastewater services & water, PG&E’s Solar Choice Program for electricity, and San Luis Garbage for waste disposal Final Approval for Construction to Begin. Hire Local Contractor. Prepare Site for Improvements. Prepare and submit State License Application City Reviews Applications and Selects Top 3 Storefront Retail Applicants 2019 Construction August -September 2019 Initial Construction Commences Finish Facility September 2019 Site Preparation Drywall & Finishes Review Security Plan with Chief of Police Preparation for Opening September 2019 –October 2019 Purchase, Order, & Install Fixtures, Hardware, Furniture & Equipment Install Security Equipment City Inspections Obtain Certificate of Occupancy Purchase & Register Delivery Vehicle Open for Business October 2019 Install IT Infrastructure Footings, Foundation Framing Plumbing Installation Utilities Preparation Electrical Systems Installation HVAC Installation Flooring & Paint Pave Parking Lot Human Resources: Recruit, Register, & Train Key Employees Contract with Local Security Guard Company Install & Train on Track-and- Trace System Test All Systems & Rehearse SOPs Place Initial Orders for Cannabis to Sell and Deliver at Retail Storefront Opening Day of Retail Storefront Confirm State License is issued! Obtain City Business License and Tax Certificate Review Delivery Security Procedures Vehicle Security Equipment with Chief of Police Constructio n Complete 77 Harvest of San Luis Obispo LLC Business Plan Attachments 80 81 82 83 84 85 86 87 88 89 SAMPLINGRECORDDateSampledSample # StrainName 91 92 SStateofCalifornia Secretary of State Statement of Information Domestic Stock and Agricultural Cooperative Corporations) FEES (Filing and Disclosure): $25.00. If this is an amendment, see instructions. IMPORTANT – READ INSTRUCTIONS BEFORE COMPLETING THIS FORM 1.CORPORATE NAME 2.CALIFORNIA CORPORATE NUMBER This Space for Filing Use Only No Change Statement (Not applicable if agent address of record is a P.O. Box address. See instructions.) 3. If there have been any changes to the information contained in the last Statement of Information filed with the California Secretary of State, or no statement of information has been previously filed, this form must be completed in its entirety. If there has been no change in any of the information contained in the last Statement of Information filed with the California Secretary of State, check the box and proceed to Item 17. Complete Addresses for the Following (Do not abbreviate the name of the city. Items 4 and 5 cannot be P.O. Boxes.) 4. STREET ADDRESS OF PRINCIPAL EXECUTIVE OFFICE CITY STATE ZIP CODE 5. STREET ADDRESS OF PRINCIPAL BUSINESS OFFICE IN CALIFORNIA, IF ANY CITY STATE ZIP CODE 6. MAILING ADDRESS OF CORPORATION, IF DIFFERENT THAN ITEM 4 CITY STATE ZIP CODE 7. EMAIL ADDRESS FOR RECEIVING STATUTORY NOTIFICATIONS Names and Complete Addresses of the Following Officers (The corporation must list these three officers. A comparable title for the specific officer may be added; however, the preprinted titles on this form must not be altered.) 7. CHIEF EXECUTIVE OFFICER/ADDRESS CITY STATE ZIP CODE 8. SECRETARY ADDRESS CITY STATE ZIP CODE 9. CHIEF FINANCIAL OFFICER/ADDRESS CITY STATE ZIP CODE Names and Complete Addresses of All Directors, Including Directors Who are Also Officers (The corporation must have at least one director. Attach additional pages, if necessary.) 10. NAME ADDRESS CITY STATE ZIP CODE 11. NAME ADDRESS CITY STATE ZIP CODE 12. NAME ADDRESS CITY STATE ZIP CODE 13. NUMBER OF VACANCIES ON THE BOARD OF DIRECTORS, IF ANY: Agent for Service of Process If the agent is an individual, the agent must reside in California and Item 15 must be completed with a California street address, a P.O. Box address is not acceptable. If the agent is another corporation, the agent must have on file with the California Secretary of State a certificate pursuant to California Corporations Code section 1505 and Item 15 must be left blank. 14. NAME OF AGENT FOR SERVICE OF PROCESS 15. STREET ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA, IF AN INDIVIDUAL CITY STATE ZIP CODE Type of Business 16. DESCRIBE THE TYPE OF BUSINESS OF THE CORPORATION 17.BY SUBMITTING THIS STATEMENT OF INFORMATION TO THE CALIFORNIA SECRETARY OF STATE, THE CORPORATION CERTIFIES THE INFORMATION CONTAINED HEREIN, INCLUDING ANY ATTACHMENTS, IS TRUE AND CORRECT. DATE TYPE/PRINT NAME OF PERSON COMPLETING FORM TITLE SIGNATURE SI-200 (REV 01/2013) APPROVED BY SECRETARY OF STATE 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 Business Operations Plan: Community Relations Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC TABLE OF CONTENTS Community Relations Plan ................................................................................................. 2 Community Point of Contact: Director of Community Outreach .................................... 2 Elimination of Cannabis Odor and Olfactory Stimulus................................................... 3 Reducing Common Visual Observation ......................................................................... 4 Mitigating Light Pollution ................................................................................................. 5 Enhancing Security and Preventing Diversion ............................................................... 6 Responsible Advertising ................................................................................................. 6 Responsible Messaging on Packaging .......................................................................... 7 Description of Criteria Page # Section 4: Messaging 4.2) Business articulates strategy to keep cannabis from being diverted to minor including advertising that is appropriately targeted to adult audiences 6 4.3) Business promotes responsible use including messaging on packaging, offering lower dose THC product options, offering to track use via “user determined quotas,” posting information on cannabis use disorder and cautions re: development of the adolescent brain 7 Section 7: Financial Investment 7.2) Applicant commits to major improvements, including façade rehabilitation, building expansion, site improvements, removing visual blight, and/or other investments in an underutilized/underdeveloped site th at has been zoned for commercial use for a commercial cannabis facility 4 1 COMMUNITY RELATIONS PLAN 1 The following narrative is excerpted from the Community Benefits Plan. Harvest has developed a comprehensive Community Relations Plan to minimize any potential neighborhood compatibility issues and quickly address any issues that do arise. This plan describes specific strategies and equipment that will be used to mitigate any potential negative impacts or nuisances, including enforceable assurances that no odor will be detected from outside of the facility,2 as well as steps to take if and when complaints arise. Harvest’s Director of Community Outreach, Jason Kallen, is critical in this effort. Mr. Kallen and the entire Harvest team will work closely with community members, neighborhood leaders and local businesses to document and address any concern. Harvest will operate its facility in a manner as to prevent noise, dust, vibration, glare, fumes or odors from being detectable beyond the boundaries of the property on which the facility is operated. No cannabis will be visible from outside the facility.3 Because of our operational history, we have a unique expertise to mitigate common neighborhood concerns and do not anticipate any issues arising from our operations. COMMUNITY POINT OF C ONTACT: DIRECTOR OF COMMUNITY O U TREACH Harvest’s Director of Community Outreach, Jason Kallen, is the community’s go -to point of contact for any questions, concerns or comments for our proposed SLO operation. Due to extensive planning and community outreach, we do not anticipate any concerns or complaints regarding our operations. Still, company policies require that any staff member receiving a complaint or concern must report it to Mr. Kallen immediately so that such issues may promptly be addressed. All necessary actions will be taken to resolve a complaint and all records of complaints will be kept on -site. Harvest is committed to developing and strengthening our ties to the neighborhood and to ensuring that our neighbors thrive along with us. We look forward to continuing to develop a synergistic relationship between Harvest and the SLO community. COMMUNICATING WITH H ARVEST Harvest will use multiple communication tools to engage the residents of SLO and address any concerns they may have. Each communication platform will be consistently staffed to respond to inquiries. Communication platforms may include: 24-Hour Telephone Hotline Number; Active Social Media Accounts; and 1 CSLOMC § 17.99.050(D)(4). 2 CSLOMC § 17.99.050(E)(3). 3 CSLOMC § 17.99.050(E)(4). 2 Regularly Monitored Email and Website Contact Form. Harvest encourages all community members, neighbors, businesses and clientele to reach out immediately to our Director of Community Outreach Jason Kallen should there be an issue with our operations. Mr. Kallen may be contacted with comments, concerns, complaints or questions at any time, including during or after normal business hours. Harvest will continue to listen, share knowledge and create an understanding of our services, objectives and planned outcomes with all interested parties. Harvest will frequently meet with public officials, the community and stakeholders so that we may hear about any issues or concerns related to the facility, our operations and our presence in the SLO community. Harvest is committed to maintaining positive relationships with the neighborhood. Our overall goal is to build a transparent relationship with the city and surrounding businesses to ensure that all feel comfortable and secure with Harvest’s retail operation. One of the primary responsibilities of Mr. Kallen as Director of Community Outreach will be to field community questions and concerns . In addition to the communication platforms listed above, Harvest intends to maintain a regularly-updated website where consumers and community members can receive current relevant information about our operations and company values. Harvest will also have a frequently asked questions (“FAQs”) page to address common questions about the cannabis industry and our SLO retail operation. Harvest intends to continue to listen, share knowledge, and create an understanding of our services, objectives and planned outcomes with all interested parties. Harvest will frequently meet with public officials, the community, and stakeholders so that we may hear about any issues or concerns related to the facility, our operations, and our presence in the SLO community. PUBLIC OUTREACH Harvest will also host at least two public outreach meetings per year. The Director of Community Outreach will coordinate these public outreach sessions and listening sessions by scheduling semi -annual gatherings to listen to the community and its feedback on the retail facility and operation. If necessary, Mr. Kallen will establish an action plan and a reporting arrangement to ensure the community is informed about facility related developments. Our goal is to foster an inclusive environment where neighbors feel safe asking questions about our operations and philanthropy. Neighborhood associations, local businesses, residents, area nonprofits, law enforcement and local businesses will be invited to participate. It is important to hear the community’s voice and ensure their needs are incorporated into our mission. ELIMINATION OF CANNA BIS ODOR AND OLFACTO RY STIMULUS Harvest has developed an odor mitigation plan to ensure that our facility serves as an environmental steward of the community and does not create a nuisance. Through the facility 3 design process, our company can identify all potential sources of olfactory emissions and proactively design, construct and operate a facility that follows industry best practices for odor mitigation. Our company’s activities will not create offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity in the area. Please see our Odor Control Plan for additional information. REDUCING COMMON VISU AL OBSERVATION Harvest is committed to ensuring that its facility adds value to the SLO community and does not pose a nuisance to its surrounding neighbors. Cannabis operations will be concealed from public view at all times and there will be no evidence of cannabis or cannabis products visible from outside the facility.4 Harvest will address any deferred maintenance issues associated with the site, including but not limited to: Replacement of dead or deficient landscaping; Constructing a state-of-the-art building; Repaving and restriping of parking lot area; Installation or replacement of damaged fencing; Removal or replacement of uplifted sidewalks; and Removal of any trash or debris. The facility will be designed to complement the general character and aesthetics of the surrounding area. No pictures, photographs, drawings or other depictions of cannabis will appear on the outside of Harvest’s permitted premises nor will any such images be visible from the outside of the premises. Harvest will ensure that trees, bushes and other foliage outside of the premises do not allow people to conceal themselves from sight. DAILY INSPECTIONS Company management will complete a daily inspection to ensure the interior and exterior of the facility is properly maintained. Harvest will ensure that that the facility premises and associated parking, including the adjacent area under the control of Harvest and any sidewalk or alley, will be maintained in an attractive condition and will be kept free of obstruction, trash, litter and debris at all times. Adequate illumination of the exterior of the building in the evening, along with visible exterior security cameras, will deter vandalism of any kind. 4 CSLOMC § 17.99.050 (E)(4) 4 MINIMAL SIGNAGE Harvest is committed to ensuring that its signs and exterior storefront add value to SLO while respecting the historic and vibrant culture of the community. All exterior signs will be designed to complement the general design, character and aesthetics of the neighborhood, and will comply with all SLO regulations for size, area and type of sign.5 Out of respect for SLO residents and neighboring businesses, Harvest’s signs will be minimal and modern. No internal illumination of signs will be used.6 They will only display the company’s name and address to assist customers in locating the business. To ensure there is no exterior evidence of cannabis retail activities, external signage will not: Promote the use of cannabis and cannabis products; Be appealing to minors; Include prices of cannabis and cannabis products; or Advertise the availability of cannabis. External signage will conform to and comply with the ordinances and rules set forth by SLO and all applicable state and local laws, regulations, ordinances and other requirements regulating signs and advertising. Internal signage will not be displayed on the interior of the facility in such a way as to be visible from the exterior. MITIGATING LIGHT POL LUTION Harvest will be respectful of the night sky and our neighbors. We understand the natural beauty of SLO, with its Mediterranean climate and central location between the Coast Range and Pacific, draws many to the area and that minimizing light pollution is central to maintaining that natural appeal. As such, minimal lighting level of one foot -candle will be utilized at building entrances and in parking lot areas. All exterior lighting will be fully shielded, downward casting and not spill over onto structures, other properties or the night sky. Exterior lighting on the premises will be balanced to complement the security and surveillance systems to ensure all areas of the premises are visible. Exterior lights will be utilized from dusk till dawn with increased lighting at all entrances to the premises. Harvest will not utilize any type of active outdoor facility lighting that would create light pollution issues. Should facility lighting give rise to a complaint, Harvest will work to develop a compliant lighting solution that addresses community impact considerations without sacrificing facility security. 5 CSLOMC §17.99.050(D)(3) 6 CSLOMC § 17.99.050(D)(3) 5 ENHANCING SECURITY AND PREVENTING DIVE RSION Harvest has comprehensive security protocols in place to minimize any risk of security threat or diversion. To support us in maintaining a secure facility, we have engaged with numerous high-quality security professionals to provide security consulting as we develop our procedures, as well as on-site security services at our facility once it is operational. As required, the facility will be patrolled by a Security Guard, prohibiting individuals from remaining on Harvest’s premises if they are not or will not be actively engaging in the purchase of cannabis goods or any other activity expressly related to the operations of Harvest. RESPONSIBLE ADVERTIS ING As part of Harvest’s efforts to prevent diversion and the under-age consumption of cannabis, great care will be taken to ensure all advertising is appropriately targeted to adult audiences. Harvest will always ensure its advertising, whether in broadcast, cable, radio, print or digital communication, will only be displayed after we have obtained reliable, up -to-date audience composition data demonstrating that at least seventy-one point six percent (71.6%) of the audience is reasonably expected to be twenty-one (21) or older. Harvest will retain audience composition data in order to provide such information immediately upon request to the BCC, and will remove the advertising or marketing in question if the BCC determines the data does not comply with the requirements. No Harvest ads will utilize any depictions of minors or persons under the age of twenty -one 21), nor will they utilize any display, depiction or image designed in any manner to be appealing to minors or anyone under the age of twenty-one (21). No free cannabis goods or giveaways will be permitted or advertised. If Harvest utilizes any outdoor signs in our advertising plan, the signs will always be affixed to a building or other permanent structure, comply with all SLO signage rules and the Outdoor Advertising Act, and will not be located within a fifteen (15) mile radius of the California border on an Interstate Highway or a State Highway which crosses the California border. If direct, individualized advertising Sample advertisement for a Harvest-sponsored community group. 6 communications are sent, Harvest will use age affirmation to verify the recipient is twenty - one (21) or older and will likewise confirm the age of any potential customer who wishes to be added to Harvest’s mailing list. RESPONSIBLE MESSAGIN G ON PACKAGING Harvest believes that responsible messaging on packaging is crucial to preventing under - age consumption of cannabis as well as reducing stigma for the medical cannabis community. As a retailer, Harvest will not package or label cannabis goods, and will not accept any deliveries of cannabis goods that are not packaged for final sale. We will always verify that all legal packaging requirements have been met. Responsible messaging is important, and Harvest will always ensure our exit packaging, advertising, and outreach efforts underscore that message. Our messaging emphasizes education, clear and accurate labeling, medical use as appropriate, and an avoidance of recreational terminology (e.g., weed, stoned, etc.) and imagery (cannabis leaves, green crosses, etc.). We have developed several style guides to ensure consistent and accurate messaging, dictating the colors, fonts, imagery, typography, backgrounds, and textures that may be used. Our trade name, Harvest, does not contain wording commonly associated with marketing targeted toward children or that promotes recreational cannabis use. When selecting cannabis goods to stock our shelves, we strive to partner with other companies that share our ethos on this matter. To the left is a sample of the kind of minimalistic and responsible packaging with which Harvest will strive to fill our inventory in SLO. 7 Business Operations Plan: State Licenses Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HARVEST OF SAN LUIS OBISPO LLC STATE LICENSES Harvest of San Luis Obispo LLC does not currently hold state licenses relating to this Commercial Cannabis Business license application. Upon obtaining local authorization from City of San Luis Obispo (“SLO”), Harvest will proceed with providing evidence of this authorization to the Bureau of Cannabis Control (“BCC”) and fulfilling all of the California state license requirements. When the BCC issues a provisional or annual license, Harvest will immediately make the license available to the City and display it on the interior of the Facility. Business Operations Plan: Tax Compliance Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC TAX COMPLIANCE Harvest of San Luis Obispo, LLC (“Harvest”) is a newly formed entity and as such has not yet had any taxes assessed. Still, Harvest is fully committed to taking all necessary steps to ensure any and all taxes assessed, whether at the federal, state or local level, are promptly and accurately transmitted. As an operator in other states with legal cannabis programs, Harvest is keenly aware of our tax compliance obligations. Just as we monitor laws and regulations for updates pertaining to cannabis businesses, we likewise diligently monitor those resources for any new or altered tax obligations which may arise. As such, Harvest has already implemented necessary alterations to their plans and projections to encompass the recently adopted San Luis Obispo Cannabis Tax Measure, Measure F-18, which established a tax of up to ten percent (10%) on gross receipts. All Harvest sales transactions are subject to applicable tax rates. The proper tax rates will be programmed into each point of sale system to ensure that all relevant tax is collected. The Director of Retail Operations, in coordination with the Chief Financial Officer, will ensure the proper collection of tax on all taxable products sold in the facility. Purchasers of cannabis or cannabis products will be subject to a cannabis excise tax at the rate of fifteen percent (15%) of the average market price of any retail sale by a cannabis retailer, a sales tax of seven and seventy-five hundredths percent (7.75%), as well as the new San Luis Obispo Measure F- 18 tax. Harvest will provide all consumers with an invoice, receipt, or other document that displays the cannabis excise tax separately from the list price, the price advertised in the premises, the marked price, or other price and includes a statement that reads: “The cannabis cultivation and excise taxes are included in the total amount of this invoice.” Further, Steve White, CEO and Owner of Harvest, is an experienced businessperson with specialized knowledge of running compliant cannabis operations. Mr. White takes his responsibility seriously and understands the importance and significance of satisfying an entity’s assessed taxes. To demonstrate this commitment and understanding, Mr. White has signed an affidavit averring the timely and sufficient submission of all necessary tax obligations, and which is attached to this application for your perusal. Mr. White’s entire career has involved strict compliance with a multitude of laws and regulations. As an attorney and later as the head of his own law firm, Mr. White was essential to ensuring not only top-level legal assistance but also compliance with standard business obligations, such as payment of assessed taxes. Mr. White continued his entrepreneurial bent to join the burgeoning medical cannabis marketplace in Arizona in 2013. His success in Arizona not only earned his company accolades as the “Best Medical Marijuana Dispensary” in the state for five (5) years running but allowed the company to grow and expand to serve patient and adult-use populations in ten (10) states throughout the country, including California. None of Mr. White’s success would have been possible without close attention to all the minutiae of the business, including payment of assessed taxes. He is acutely aware of the complicated web of laws and regulations at each level of government that must be parsed in order to run a fully compliant operation and has done so with flying colors. He intends to continue that record of compliance in his new venture, Harvest of San Luis Obispo LLC. With first-hand experience of dealing with the specific issues and considerations that arise when paying tax on a product that is not only heavily regulated but also considered a controlled substance by the federal government, Mr. White and the entire Harvest of San Luis Obispo LLC team will be an equal partner to the BCC, local San Luis Obispo officials and other regulators who understands the complexity of the business and will ensure necessary steps are taken to satisfy their tax obligations quickly and efficiently. Business Operations Plan: Insurance Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HARVEST OF SAN LUIS OBISPO, LLC INSURANCE Although Harvest of San Luis Obispo (“Harvest”) has confirmed with City of San Luis Obispo SLO”) staff that we do not need to provide our certificate of commercial general liability insurance and endorsements as Harvest is a newly formed entity, has not operated under this entity in the past and does not have an existing structure, Harvest has proactively obtained the attached insurance Letter of Intent (“LOI”). Harvest is familiar with SLO’s required insurance standards and we have appointed United Agencies as our broker of service for all insurance policies required by SLO for our storefront and delivery retail operations. At the other cannabis operations that Harvest owns and operates, we satisfy all required insurance coverage obligations and are very familiar with the process. The insurance coverage Harvest will obtain includes: Property and General Liability Insurance Product Liability Insurance Worker’s Compensation We are aware that the City Attorney may deem additional conditions and require additional insurance coverage. Prior to obtaining our full insurance coverage from United Agencies, Harvest will confirm with the City Attorney it is obtaining the full insurance coverage required by SLO.1 1 CSLOMC 9.10.160 One Post Suite 200 Irvine, CA 92618 949)861-4801 Re: Letter of Intent – Insurance City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 To Whom It May Concern: Harvest of SLO has hereby appointed United Agencies as their broker of service for the insurance policies required by the city of San Luis Obispo for the operations of a cannabis dispensary. United Agencies is a Property and Casualty insurance broker licensed in the state of California, license #0252636, and has access to specialty cannabis insurance carriers that will provide the insurance needed for the operations. The insured is currently in process of licensing a property for dispensary operations located at 309 Higuera St., San Luis Obispo, CA 93401. United Agencies has access to the following carriers: Golden Bear Insurance Company – Admitted California Carrier (A.M. Best Rating A- VII) Falls Lake National Insurance Company (A.M. Best Rating A X) United Specialty Insurance Company (A.M. Best Rating A IX) Protective Insurance Company (A.M. Best Rating A IX) These carriers will be able to provide the following coverage: Property & General Liability Product Liability Workers’ Compensation If any further information is needed regarding the insurance for Harvest of SLO, please reach out to Nathan Bosza at nbosza@unitedagencies.com. Thank you, Nathan Bosza Commercial Insurance Broker P&C License #0G56082 949)861-4801 nbosza@unitedagencies.com Business Operations Plan: Budget and Financial Capacity Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HARVEST OF SAN LUIS OBISPO, LLC TABLE OF CONTENTS Budget and Financial Capacity ........................................................................................ 2 Initial Investment .......................................................................................................... 2 Initial Capital Expenditures .......................................................................................... 2 Financial Operations .................................................................................................... 3 Proof of Capitalization ..................................................................................................... 4 Pro Forma ....................................................................................................................... 7 Harvest of San Luis Obispo LLC Financial Pro Forma (2019 – 2022) ............................. 8 Description of Criteria Page # Section 7: Financial Investment 7.1) Applicant demonstrates financial capacity to capitalize, start up, and sustain business operations 2 7.2) Applicant commits to major improvements, include façade rehabilitation, building expansion, site improvements, removing visual blight, and/or other investments in an underutilized/underdeveloped site that has been zoned for commercial use for a commercial cannabis facility 2 HARVEST OF SAN LUIS OBISPO, LLC BUDGET AND FINANCIAL CAPACITY INITIAL INVESTMENT Harvest of San Luis Obispo, LLC (“Harvest”) has secured adequate capitalization to fund startup costs and sustain initial operating cash needs for the proposed Commercial Cannabis Retailer Storefront operation in the form of $30 million earmarked from the investors described in this application. These funds reside in Harvest’s account with Parke Bank. This 30 million represents sufficient financial capacity to capitalize, start up, and sustain business operations in SLO. The owners of Harvest have established a reliable banking relationship for cannabis operations with Technicolor Federal Credit Union (“TFCU”). TFCU provides banking services to other Harvest operations for two newly awarded licenses in Moreno Valley and Merced, as well as multiple cannabis operations in Arizona where their first locations were established. The $30 million investment will be deposited into a business account following the issuance of all applicable permits and licenses. Harvest does not anticipate any other lender or investment funding associated with the proposed operation. INITIAL CAPITAL EXPENDITURES We have estimated pre-operational capital expenditures for 2019 based on our City of San Luis Obispo (“SLO”) land purchase negotiations with land owners, quotes from design and construction contractors, and inputs from Harvest Inc.’s significant previous experience in establishing cannabis operations from the ground up in multiple other states. Harvest will undertake significant improvements to the proposed location, refurbishing an underutilized location to a state-of-the-art, modern retail facility. Harvest is confident this commercially zoned space will support our vibrant business. Harvest plans to complete all capital investments and facility preparations in mid-2019, with operations commencing in October 2019 after all required licenses are secured. Anticipated initial expenses for 2019 are approximately $1.3 million, including $650,000 for the purchase of the property, $545,000 for the design, construction and equipment 1 necessary to renovate an existing 2,017 square foot retail building, $63,500 for initial staff training, and $50,000 budgeted for initial inventory purchase. These conservative capital expenditure estimates are based on the experience and costs of other cannabis retail locations operated by the owners of Harvest, as well as a survey of construction and equipment costs in the Central California area. In the event that initial capital expenditures exceed these estimates, our initial investment of $30 million will be 1 Equipment expenditures include a robust security system, point-of-sale and inventory computer systems, furniture and other operational equipment. 2 HARVEST OF SAN LUIS OBISPO, LLC sufficient to cover any unexpected capital requirements for preparing the facility for operations. FINANCIAL OPERATIONS In order to generate an accurate and realistic operating pro forma, we examined local cannabis market data and metrics from our other retail locations on revenues, cost of goods sold, wages for employees, management, and security personnel, marketing expenditures, and other operational expenses. All operational and facility preparations will be completed in 2019, with operations commencing by October 2019, pending approval of all required licenses and permits. The first full fiscal year of operations will be 2020. MARKET ANALYSIS Revenue projections are based on local characteristics of SLO and broader Central California area markets, including population demographics, cannabis use prevalence, and prevailing market prices for cannabis goods. We also utilize our experience from other retail cannabis operations to inform our estimates of customer spending patterns and profit margins. We expect to primarily serve customers from SLO, with additional customers from the broader San Luis Obispo County area. With three anticipated retail licenses to be issued in SLO, we expect to serve a proportional share of the local market, as well as a small fraction of the County market. Based on regional demographic characteristics and cannabis use patterns, our market analysis calculations yield an estimated total of 3,133 customers served in 2020, increasing to 4,246 annually by 2022 as the market and our market share continue to grow. Combining our previous retail experience and industry market reports for Central California, we anticipate that customers will spend an average of $140 per month in 2019. As observed in other legalizing states, cannabis expenditures among adults are expected to increase after legalization. We anticipate a 2019 price of $12 per gram of cannabis flower, decreasing significantly over time as the market matures. These patterns of increased expenditures and declining prices have been observed in other legalizing states, and are expected to unfold in California’s retail cannabis market in a similar fashion. We combine the figures described above to estimate sales revenues of $5.6 million in 2020, increasing to $8.1 million annually by 2022. EXPENSE ANALYSIS The owners of Harvest have established numerous relationships with producers and wholesalers through our other retail locations and base our projected cost of goods sold on 3 HARVEST OF SAN LUIS OBISPO, LLC prevailing wholesale prices and retail markups. Throughout the Pro Forma, the cost of goods sold is roughly 40-50 percent of revenues. Payroll fees are inclusive of salaries for wellness representatives (sales associates) and facility managers, along with payroll taxes, fringe expenses related to employment costs, benefits, and other payroll related expenses. Harvest estimates an initial staff of thirteen (13) Wellness Representatives, six (6) Security Personnel, four (4) Facility Managers, an Inventory Manager, a Director of Community Outreach, Director of Cannabis Education, Director of Safety and Security, and Director of Retail Operations. The 2020 labor expenses are estimated at $1.3 million, increasing year over year as staffing needs grow to $1.9 million annually by 2022. Professional fees include legal and financial services, non-payroll security personnel and other contractors, as well as any other professional services provided by third-party vendors. These expenditure estimates are based on the professional service expenditures as incurred by other similar retail locations operated by the owners of Harvest. We anticipate annual professional fees increasing from $135,356 in 2020 to $179,351 in 2022. Occupancy expenses include all applicable taxes, common area maintenance fees, property insurance, utilities, and other related costs subject to the ownership of the property. We estimate the 2020 occupancy costs at $102,375, increasing to $112,868 annually by 2022 due to inflation and additional maintenance and utilities costs. Harvest estimates annual marketing expenses to be approximately 3 percent of revenue, for an annual expense ranging from $157,915 in 2020 to $211,960 annually by 2022. All marketing efforts will comply with applicable California and SLO laws and regulations. Other operating expenses include additional office supplies and materials, telephone and internet expenses, insurance, and other operational fees. We estimate Other Operating Expenses at approximately $129,716 to $171,198 annually. Based on our projections for expenses detailed in our business plan, total monthly operating expenses are forecasted to be approximately $1.8 million in 2020, increasing to $2.5 million annually by 2022 as we increase our staff size, marketing efforts, and other operational activities. PROOF OF CAPITALIZATION Proof of capitalization demonstrating sufficient capital is in place to pay startup costs is on the following page. 4 5 6 7 HARVEST OF SAN LUIS OBISPO, LLC PRO FORMA Our financial Pro Forma statement projects annual revenue, cost of goods sold, and operating expenses from 2020 to 2022. Harvest plans to commence retail operations by the fourth quarter of 2019, with the first full calendar year of operations in 2020. As indicated in the attached Pro Forma statement, we anticipate a positive net operating income in the first full year of operations (2020) of $1.1 million, increasing to $1.8 million by 2022. Each year, we anticipate income tax distributions to the owners of the LLC equal to 30 percent of gross margin. The income tax provisions for 2020 are $879,812, increasing to 1.3 million in 2022. After these distributions, the expected Net Operating Cash Flows for 2020 is positive, at $202,686. The cash flow increases each year as the market matures and our operation grows, reaching $498,414 by 2022. The $30 million in startup capital that we have secured far exceeds our estimated initial capital expenditures, operating costs, and income tax provisions for the first four (4) years of operation. Even if our projections prove too optimistic, Harvest has more than adequate capital to fund the proposed project in the event of unexpected costs or market conditions. The Available Cash on Hand shown in the Pro Forma illustrates that our cash holdings can easily sustain unexpected expenses or negative cash flows for several years. However, we anticipate a positive cash flow in our first full year of operations and beyond. Estimated state and local business taxes incurred for 2020 are over $1.4 million, inclusive of the California state business income tax (8.84 percent of net income), California cannabis excise tax (15 percent of COGS), the general California sales tax (7.25 percent of revenue), and a 10 percent SLO cannabis excise tax. Total annual taxes incurred will increase to $2.1 million by 2022 as operations scale up. The total taxes paid to SLO from 2019 through 2022 are estimated at $2.4 million, or an average of over $621,000 per year, based on the city’s local cannabis tax rate of 10 percent on gross receipts, as approved by voters in November 2018. 8 HARVEST OF SAN LUIS OBISPO, LLC HARVEST OF SAN LUIS OBISPO LLC FINANCIAL PRO FORMA (20 19 2022 ) 9 Business Operations Plan: Products and Services Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HARVEST OF SAN LUIS OBISPO, LLC TABLE OF CONTENTS PRODUCTS AND SERVICES ............................................................................................................... 3 PRODUCTS OFFERED ....................................................................................................................... 3 ENSURING CONSISTENT DOSING ................................................................................................. 4 INFORMATIVE PACKAGING TO PROMOTE RESPONSIBLE USE ......................................................... 4 PRODUCT SAFETY AND TESTING .................................................................................................. 6 SAMPLE CANNABIS GOODS ......................................................................................................... 7 SERVICES OFFERED ....................................................................................................................... 12 DELIVERY SERVICES ................................................................................................................... 13 COMMUNITY OUTREACH AND VOLUNTEER WORK ...................................................................... 16 MONTHLY EDUCATION CLASSES ............................................................................................... 16 COMMUNITY AND YOUTH DRUG PREVENTION ............................................................................ 19 COMMUNITY EDUCATION AND INFORMATION ............................................................................. 20 1 HARVEST OF SAN LUIS OBISPO, LLC Description of Criteria Page # Section 1: Community Benefit 1.1B) Providing over twenty (20) hours per month community service 16 1.2B) Provide over $1,000.00 per month for community support 16 Section 4: Messaging 4.1) Applicant commits to responsible use messaging practices 3, 17 4.2) Business articulates strategy to keep cannabis from being diverted to minors, including advertising that is appropriately targeted to adult audiences 1 4.3) Business promotes responsible use including messaging on packaging, offering lower dose THC product options, offering to track use via “user determined quotas,” posing information on cannabis use disorder and cautions re: development of the adolescent brain 3, 4, 11, 17, 19 Section 5: Medical Retail Commitment 5.1) Applicant commits to provide retail medical cannabis products to consumers 3, 11 2 HARVEST OF SAN LUIS OBISPO, LLC PRODUCTS AND SERVICES Harvest of San Luis Obispo LLC (“Harvest”) is grateful for the opportunity to serve the City of San Luis Obispo (“SLO”). Whether our customers are patients seeking relief from any number of maladies or adult-use consumers, we are committed to offering a full and robust product range to suit any patron’s needs. We will always have medical cannabis goods available for that most vulnerable patient population, including lower dose THC product options. Harvest is also committed to serving as a resource in the community, not just a retailer. While some operators are simply moving products, Harvest’s knowledgeable staff receives regular training and is ready and able to assist and educate those who desire a greater understanding and comprehension of cannabis goods and developments in the industry. Harvest will always promote responsible cannabis use in our messaging practices in an effort to educate consumers about safe choices when using cannabis to ensure the best and safest possible experience. Harvest looks forward contributing to the SLO economy and community and will continually re-evaluate our cannabis good offerings, services and practices to adapt and exceed the needs of our local community. PRODUCTS OFFERED As experienced operators working in ten (10) states across the country, we have had the opportunity to continually learn, grow and embrace our consumers’ and communities’ individual needs. Speaking with patients and consumers about their struggles in obtaining relief from their ailments, the lack of quality product availability and the lack of product diversity continuously inspires our team at Harvest to operate differently. Harvest is committed to offering a wide range of product types, administration methods, and tetrahydrocannabinol (“THC”) and cannabidiol (“CBD”) potencies, all within the limits set forth by applicable state and local laws and regulations. Research published in the Journal of Psychoactive Drugs corroborates our experience, showing that medical cannabis patients use inhalable medical cannabis goods most commonly, followed by oral consumption products and finally topically applied products. We at Harvest strive to be good stewards in this nascent industry, and we believe that central to that mission is offering a diverse array of options for patients and customers to make informed, responsible choices about their cannabis use. Our carefully curated cannabis goods will be offered at an affordable price point so access to the benefits of cannabis is based on preference, and not the size of one’s wallet. Harvest’s proposed operations were carefully and thoughtfully designed with our customers’ health, welfare and safety as a primary concern. All cannabis goods offered, whether medical or adult-use, will be inspected by trained Harvest personnel and the goods’ packaging and labeling verified to ensure strict compliance with the rules set forth by the Bureau of Cannabis HARVEST OF SAN LUIS OBISPO, LLC Control (“BCC”) and all applicable state and local laws, regulations, ordinances and other requirements. At Harvest, we are committed to providing cannabis goods that people can trust. ENSURING CONSISTENT DOSING Harvest knows that consistent product dosing is what sets quality retailers apart from the competition. To encourage responsible cannabis use, patients and consumers need to be sure the dosage and potency information found on the label is accurate to the product inside. Harvest will only stock cannabis goods that were produced to ensure consistent product dosing. The table below displays test results for vapor cartridges with standardized cannabinoid concentrations despite varying oil potency such as would be found in our product offerings at our SLO facility. Harvest will always verify products received against third-party independent laboratory test results, which must be performed by a licensed testing laboratory using High Performance Liquid Chromatography. Products will not be made available for sale unless test results demonstrate consistent product dosing. Test Date Batch Oil Potency Potency Standard Cartridge Potency 11/11/16 KDLHWOG1013116 845 mg/g 333 mg/g 335 mg/g 12/21/16 KDLWHSI111116 734 mg/g 333 mg/g 343 mg/g All product dosing information will comply with applicable laws and regulations. INFORMATIVE PACKAGIN G TO PROMOTE RESPONSI BLE USE Harvest believes informative packaging promotes responsible cannabis use. By empowering our patrons to know the full details of a product, from cannabinoid profile to dosage to the product’s cultivator and, where applicable, manufacturer, our customers will have the necessary information to make informed and responsible decisions regarding their cannabis usage. For those unfamiliar with the information provided, our knowledgeable staff is available to guide them through. Cannabis goods will be packaged in a resealable, tamper-evident and child-resistant package approved by the BCC prior to delivery or sale at Harvest’s retail facility and must include all information required to identify and track cannabis and cannabis products. Packages and labels must not be designed to be attractive to children. Harvest will not accept from a licensed distributor any cannabis goods that are not packaged as they will be sold at final sale, and Harvest will not package or label any cannabis goods. The Director of Retail Operations will ensure that all cannabis goods accepted for sale or delivery by Harvest have not exceeded their expiration or sell -by date if one is provided, and that all cannabis products accepted into inventory comply with Business and Professions Code § 26130. In addition to the packaging inspection criteria described above, inventory may not be transferred to the retail sales floor before the Director of Retail Operations or his/her designee 4 HARVEST OF SAN LUIS OBISPO, LLC reviews a randomly selected sample of the cannabis and cannabis products and conducts a review to ensure the packaging and labeling meets all of the following requirements: All cannabis and cannabis product labels and inserts will include the following information prominently displayed in a clear and legible fashion in accordance with the requirements, including font size, prescribed by the BCC, the State Department of Public Health or the Department of Food and Agriculture: o The following statements, in bold print: For cannabis: “GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” For cannabis products: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” o For packages containing only dried flower, the net weight of cannabis in the package; o Identification of the source and date of cultivation, the type of cannabis or cannabis product and the date of manufacturing and packaging; o The appellation of origin, if any; o List of pharmacologically active ingredients, including, but not limited to, THC, CBD and other cannabinoid content, the THC and other cannabinoid amount in milligrams per serving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total; o A warning if nuts or other known allergens are used; o Information associated with the unique identifier issued by the Department of Food and Agriculture; o For a medicinal cannabis product sold at a retailer, the statement “For Medicinal Use Only;” o For edibles, the statement “cannabis infused” above the product identifier in bold in a font larger than the identifier; and 5 HARVEST OF SAN LUIS OBISPO, LLC o Any other requirement set by the BCC or the State Department of Public Health. The label and all required label information is affixed to the container so as to be unobstructed and conspicuous, and all label text shall be no less than 6 -point font in relation to the size of the container, as applicable; The label of any cannabis or cannabis product does not contain any advertising or marketing health-related statements that are untrue in any particular manner or that tend to create a misleading impression as to the effects cannabis consumption has on health; and Only generic food names are used to describe the ingredients in edible cannabis products. PRODUCT SAFETY AND T ESTING Harvest will not engage in any packaging or labeling of cannabis goods and will not accept any cannabis goods from a distributor that have not passed testing by a licensed laboratory or that are not packaged for final sale in full compliance with Department of Public Health and BCC regulations, and the criteria listed above. In addition to the packaging inspection criteria described above, Harvest will inspect all products to ensure that all cannabis goods on the premises or held in Harvest’s possession have met the testing requirements as defined by the state. Harvest will require distributors to supply evidence of testing and all testing results to Harvest before Harvest agrees to sell the distributor’s product. These testing records will be maintained on site as well as on the secure cloud server for seven (7) years.1 Inventory may not be transferred to the retail sales floor before the Director of Retail Operations or his/her designee reviews a randomly selected sample of the cannabis and cannabis products and conducts a review to ensure the packaging and labeling meets all of the testing requirements. 1 City of San Luis Obispo Municipal Code § 9.10.130(F). 6 HARVEST OF SAN LUIS OBISPO, LLC SAMPLE CANNABIS GOODS FLOWER AND PRE -ROLLS Cannabis flower is likely the most recognizable cannabis product. Dried cannabis flower comes in a variety of strains that fall under three broad categories, each of which will be represented in Harvest’s offerings. Whether indica, sativa, or a hybrid of the two, each strain has distinctive identifiers experienced through nuanced differences in taste, smell, and effect due to the varying levels of THC, CBD, and other cannabinoids and terpenes. Indica dominant strains tend to provide a more relaxed effect, while sativa dominant strains generally produce an energizing effect, and hybrids provide a bit of both. Different strains produce different experiences, so Harvest feels it is important to have a diverse variety to meet all customers’ needs. Customers will find both dried flower as well as pre-rolls, or ground dried cannabis flower pre-packaged for use, available in our facility. Sample menu with a variety of different dried flower cannabis product strains and pricings that may be found at Harvest’s facility, subject to all applicable laws and regulations. 7 HARVEST OF SAN LUIS OBISPO, LLC CONCENTRATES Cannabis concentrates are created by processing the cannabis flower through a wide variety of extraction methods. Depending on the extraction method, a range of different products can be produced all with different potencies, textures and effects. Harvest intends to provide a full range of cannabis concentrate options so consumers can make a responsible choice regarding their use. Adult-use cannabis concentrates will not be sold if the milligrams (“mg”) per package for THC exceeds one thousand (1000) mg per package, and medical cannabis concentrates will not be sold if the mg per package for THC exceeds two thousand (2000) mg per package. Wax. Wax is an opaque extract that is easy to use for newcomers to cannabis concentrates. Rosin. Rosin is increasing in popularity because of its texture, high terpene content, and absence of residual solvent. Live Resin. Created using fresh-frozen plants to preserve the individual plant’s unique aromas and taste, this product creates a potent and fresh-tasting product. Shatter. Shatter is created through an extraction process that eliminates fats and lipids. It is transparent and breaks easily into fragments. Budder. Budder is similar to wax but is softer and more pliable. It is very potent and requires a specific apparatus to use. CO2 Oil. Utilizing carbon dioxide instead of the more generally used butane, CO2 is considered to be the most natural solvent used in concentrate extraction and results in very accurate dosing. 8 HARVEST OF SAN LUIS OBISPO, LLC Pre-filled Vaporizers and Cartridges . Vaporization is advantageous because it involves heating cannabis to a degree at which cannabinoid vapors are effectively produced without the harmful byproducts of combustion. Additionally, the rapid onset and short duration of effect may only be achieved through inhaled delivery, and therefore may be more desirable in management of acute symptoms such as nausea, appetite stimulation, sleep initiation, seizures or spontaneous neuropathic pain episodes. This type of product produces rapid effects, much like smoking cannabis flower, but is preferred by many consumers because it is discreet and smoke-free. Vaporizers come in a variety of different shapes and sizes. The vape pen shown here is an average sleek and slim easy to use vape pen that is compatible with standard vape cartridges. Sample menu with a variety of different cannabis product concentrate offerings and pricings that may be found at Harvest’s facility, subject to all applicable laws and regulations. 9 HARVEST OF SAN LUIS OBISPO, LLC EDIBLES Cannabis edibles cover a broad range of cannabis-infused foods and beverages as well as other products designed for human consumption, such as tablets and capsules. Harvest will carry a wide variety of cannabis edibles in order to provide an option for those patients or consumers who do not want to inhale smoke or cannabis vapor inherent in some other consumption methods. Our diverse assortment will include everything from cookies, brownies and caramels to granola bars, olive oil and hot sauce, all of which will clearly and conspicuously be labeled as a cannabis product, so that it cannot easily be confused with a non-cannabis product. No edible cannabis product sold will exceed ten (10) mg THC per serving. Edible cannabis products will not be sold if they exceed one hundred (100) mg THC per package, with the exception of orally-dissolving medical cannabis products, which will not be sold if they exceed five hundred (500) mg per package. Harvest will carry quality cannabis products from a number of respected brands. Korova Edibles, depicted to the right, is one such likely supplier. This sample product shows the entire package of edibles does not contain more than 100 mg THC and there are 10 cookies, or servings, in the package. TOPICALS Applied directly to the skin, topical cannabis products deliver localized relief and often contain a variety of therapeutic compounds. These products have been shown to be very effective for pain management, healing of injuries, relaxation and improving skin health and appearance. Product variety in this category is immense and ranges from lotions and salves to lip balms to transdermal patches. Adult -use cannabis topicals will not be sold if the mg per package for THC exceeds one thousand (1000) mg per package, and medical cannabis topicals will not be sold if the mg per package for THC exceeds two thousand (2000) mg per package. Example of typical topical cannabis product which may be offered by Harvest. 10 HARVEST OF SAN LUIS OBISPO, LLC TINCTURES Oral administration oils , or tinctures, may be more desirable for persistent symptoms such as chronic pain, sleep maintenance, or spasticity. Cannabis product tinctures have been effective in controlling seizures in pediatric consumers with Dravet’s syndrome and are the preferred method of administration of cannabis infused oils for both medicinal pediatric and geriatric consumers who have a hard time with other modes of consumption. Notice tinctures are administered using a dropper. The label on the accompanied photograph has been left off to highlight the dropper contained. Please further note all tinctures sold by Harvest will be properly packaged and labeled. LOW DOSE THC PRODUCT S We at Harvest want to ensure we are serving the entire community, both adult-use/retail consumers and medical patients alike. A central component of that mission is ensuring a range of THC and CBD potencies in our product offerings, including low -dose THC products. We believe that by offering a variety of potencies, consumers will be empowered to make responsible decisions about their use. Lower dose THC products contain less of the psychoactive component THC and have a higher CBD content, which research is suggesting has numerous therapeutic benefits, making low dose THC a popular choice for medical cannabis patients. Additionally, with the continued growth of the legal cannabis industry consumers have seen THC content in some strains reach new levels, and some individuals simply prefer the lower THC options. Regardless the reason, Harvest is committed to ensuring low dose THC options are available for both adult-use consumer and medical patients, across a range of administration options, from flower to oil to edibles to tinctures. Harvest will engage with our community and patrons to ensure we are providing the kind of low dose THC products they desire and are updating our inventory accordingly. Example of tincture cannabis product which may be offered by Harvest. 11 HARVEST OF SAN LUIS OBISPO, LLC Sample menu with a variety of low dose THC cannabis product offerings and pricings that may be found at Harvest’s facility, subject to all applicable laws and regulations. SERVICES OFFERED Harvest patrons will always be served by educated, attentive, and empathetic staff members. This is accomplished through a rigorous employee training curriculum focused exclusively on customer service, with detailed attention to exceeding the expectations of regulators to ensure our products offered are safe and our customers are cared for. Consumer education is at the core of Harvest’s services. Our company vows to empower our customers to make his or her own decisions about cannabis consumption and provide them with the necessary materials and tools to take control of their health and wellness. 12 HARVEST OF SAN LUIS OBISPO, LLC DELIVERY SERVICES Harvest is proud to offer delivery services to our patients and patrons. Delivery is a great option for patients and eligible adult-use consumers to be able to access cannabis goods, even if transportation or mobility would otherwise hinder a consumer from physically purchasing cannabis goods at the SLO facility. Deliveries will only occur between the hours of 6 am to 10 pm, unless otherwise permitted or restricted by all applicable state and local laws, regulations, ordinances and guidelines .2 ORDERING Delivery requests must be made to Harvest’s retail facility twenty-four (24) hours in advance via telephone or our online portal. If Harvest utilizes a web -based portal, such website will additionally require the user to mark a box indicating that he or she is at least twenty-one 21) years of age or older to access the delivery processing webpage. Harvest will only make deliveries of cannabis goods in person to a physical address in California , not including an address located on publicly owned land or any address whose property or building is leased by a public agency. As a prerequisite for an order to process, the following information must be provided: Date and time request was made; Customer’s first and last name (as listed on identification to be used to validate delivery); Customer’s date of birth; Delivery address; Phone number; A detailed description of all cannabis goods requested for delivery. The description will include the weight, volume, or any other accurate measure of the amount of any cannabis goods requested; Date and time of requested delivery; and Payment. For the purposes of maintaining required confidentiality, only the first name of the customer and Harvest’s assigned customer number will be displayed on the delivery request receipt and in any other documentation accompanying delivery personnel on any delivery route. Wellness representatives responsible for taking phone orders will be trained to verify the date of birth and any required patient information provided over the phone, prior to taking the order. Eligible purchasing age calendars will be available at the licensed premises to aid in this process. If a date of birth is provided via the phone or online portal which indicates the 2 CSLOMC § 17.99.050(K). 13 HARVEST OF SAN LUIS OBISPO, LLC individual is unauthorized to purchase, the ordering process will cease and a record of al l denied transactions will be created and maintained. Prior to submitting an order for processing, the wellness representative will secondarily confirm with the prospective purchaser the accuracy of all information to be entered into the delivery processing system on the customer’s behalf. Once the order is processed the consumer will be provided with an assigned customer number for the prospective delivery. Harvest wellness representatives are prohibited from carrying large amounts of cash while performing deliveries. Once all required information in the delivery request has been processed, a wellness representative will begin to prepare the order and create a delivery request receipt. ORDER PROCESSING Harvest will not perform any delivery of cannabis goods without first generati ng a copy of the delivery request receipt for the prospective purchase through the statewide track and trace system.3 The delivery request receipt will accurately reflect the inventory being delivered from Harvest’s retail operation and will be produced in a format approved by the BCC. Harvest will maintain copies of the requests while conducting deliveries. The delivery request receipt must contain the following information: The name and address of Harvest’s licensed Commercial Cannabis Business; The first name and employee number of the licensed retail employee who prepared the order for delivery; The first name of the customer and the Harvest -assigned customer number for the person who requested delivery; The name and employee number of the delivery employee who delivered the order. The date and time the delivery request was made; The complete delivery address; A detailed description of all cannabis goods requested for delivery. The description must include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested; The total amount paid for the delivery, and the cost of cannabis goods, including any taxes or fees, and any other charges related to the delivery; and Upon delivery, the date and time the delivery was made, and the signature of the person who received the delivery. 3 CSLOMC § 9.10.130(C). 14 HARVEST OF SAN LUIS OBISPO, LLC Once an order is prepared and verified, the requested cannabis goods will be placed in a sealed exit package to which a copy of the delivery request receipt will be affixed. The wellness representative preparing the package for delivery will independently confirm that order purchase is accurate, the products packaged align with the delivery request, that the address provided on the delivery request receipt is for a permitted location in the state of California, and that delivery is not requested for a jurisdiction outside of Harvest’s delivery range. Harvest delivery personnel must prepare and carry a delivery request receipt associated with each scheduled delivery, whether in electronic or hard-copy form, in addition to the receipt affixed to each exit package. Sealed exit packages will be placed in the secure, locked storage compartment attached to the vehicle. Loading of delivery vehicles will be performed in a limited access area under the supervision of security personnel and constant video surveillance. DELIVERY Deliveries will be conducted by our world-class team of wellness representatives. All cannabis goods will be delivered by a delivery team consisting of two (2) wellness representatives. Each member of the delivery team will be at least twenty -one (21) years of age, have a clean driving record, and have completed in-house training on cargo theft risk awareness and Harvest security procedures. At least one (1) employee will remain with the vehicle at all times when the delivery vehicle contains cannabis goods. As previously stated, each wellness representative engaged in delivery services is required to carry a copy of Harvest’s current business licenses, the representative’s government-issued identification and driver’s license, and a Harvest-issued employee identification badge displaying a picture and the name of the wellness representative. Wellness representatives must present these documents and identification, as well as any shipping manifests and delivery request receipts to state and local law government agents, upon request. Employees will not wear any clothing or symbols that indicate ownership, possession or transportation of cannabis goods. A wellness representative begins the process of delivery when he or she leaves the retail premises with the pre-ordered cannabis goods and ends the process when he or she returns to the Dispensary after delivering the cannabis goods. When delivery personnel are approximately five (5) minutes away from the delivery destination, as well as upon arrival, the Harvest representative that is not driving will telephone the authorized purchaser to inform them of the impending arrival and will alert our on -site security personnel of the arrival. Once at the delivery address, the wellness representative will verify the age and identification of the intended delivery recipient prior to removing the lock box from the vehicle. Only Harvest employees will be permitted inside of a vehicle during deliveries.4 4 CSLOMC § 17.99.505(K). 15 HARVEST OF SAN LUIS OBISPO, LLC COMMUNITY OUTREACH A ND VOLUNTEER WORK As discussed in further detail in our Community Benefits Plan, Harvest is deeply committed to supporting the local SLO community, just as it has throughout the nation in cities where we operate. Harvest will sponsor and host community activities to support the city’s most vulnerable citizens, and Harvest employees will be encouraged to participate in activities supporting the surrounding community including bicycle and wheelchair repairs hosted onsite at Harvest’s retail facility, food drives and back to school drives targeted at helping children and food-insecure families and annual community park cleanups. Harvest has committed to providing over twenty (20) hours per month of community support, and over one thousand dollars ($1000) per month in monetary community support. MONTHLY EDUCATION CL ASSES The following narrative is excerpted from the Education Plan. Monthly education classes will be held for both qualified and registered patients and adult consumers to cover a variety of topics, including California and SLO commercial cannabis rules and regulations, methods of consumption, dosage and serving size suggestions, cooking, and general information on safe and responsible use. As the need for various educational classes arises, Harvest will adjust the monthly class schedule to best serve the greater needs of the patient and consumer base. Many of the seminars will be hosted by Dr. William D. Troutt, Harvest’s Director of Cannabis Education. Dr. Troutt has hosted workshops for patients across the country and specializes in cannabis-based medicine and treatment. He was the first Medical Director of a state- licensed dispensary in Arizona, and currently serves as the Senior Medical Advisor for all seven (7) sister Harvest dispensaries in Arizona and one (1) in California. Dr. Troutt’s knowledge and experience with medical cannabis extends to a wide variety of topics, including its use for controlling seizure disorders. He has presented on the therapeutic effects of cannabis at many venues including an Adult Epilepsy Conference, support groups at Banner Hospital and Mayo Clinic, and the Harvesting Hope pediatric epilepsy empowerment group. Dr. Troutt has also conducted primary research on the therapeutic effects of cannabis, publishing two academic studies focused on safe and efficacious cannabis use. Dr. Troutt will not make any individual recommendations for medical or medicinal cannabis as part of his involvement with Harvest. Local officials, including those from surrounding communities, will be invited to participate in these public education seminars. Elected officials play an important role in the healthcare of their constituents. Moreover, their voice is needed as new laws regulating cannabis are implemented. Harvest hopes to empower our elected officials with the requisite knowledge about this unique new medicine. Some educational sessions will be open to the public and will include talks by local and national experts regarding general health, diet, exercise, stress management, and other 16 HARVEST OF SAN LUIS OBISPO, LLC important holistic and self-care wellness-related topics. These sessions will be held at the dispensary facility premises. Sessions specifically focused on cannabis consumption, such as how concentrates differ from flower and how to properly administer medical cannabis, will be limited to verified adult customers and patients. Absolutely no cannabis will be consumed at the facility by employees or clientele either during these sessions or at any other time. All sessions will take place during operating hours. Our goal is to foster an inclusive environment where neighbors feel safe asking questions about our operations, products and philanthropy. Neighborhood associations, area nonprofits and local businesses will be invited to participate. It is important to hear the community’s voice and ensure that community members’ needs are incorporated int o our company’s mission. SAFE AND RESPONSIBLE CANNABIS USE Safe and responsible cannabis use will be stressed at each education class, regardless of the underlying topic. Attendees will be advised on conservative dosing strategies, variation in onset and duration of effects, potential side effects, contraindications, drug interactions, potential adverse effects, and recognizing cannabis and other substance use disorders. Staff will also inform attendees how metabolism and rate of ingestion due to factors such as age, weight, tolerance, current nutrition levels and other factors that may affect a consumers’ experience. TRACKING AND USER DE TERMINED QUOTAS As part of Harvest’s commitment to responsible cannabis use and education, Harvest will promote tracking one’s individual cannabis usage and establishing individualized quotas. Tracking cannabis usage is advisable for all cannabis users in order to monitor how much cannabis is being used or consumed, but is especially important for medical cannabis patients. Tracking one’s purchases and experiences can help provide clarity when determining what product to try in the immense array of cannabis goods. This information can also be useful for our staff to assist patrons by eliminating products that do n ot suit that individual’s preferences and needs. 17 HARVEST OF SAN LUIS OBISPO, LLC Sample cannabis journal for individuals to monitor their cannabis usage. By tracking cannabis usage, customers can not only can gain information on what cannabis goods they most enjoy and that best suit their needs, but also be aware if their usage begins to continuously increase or become problematic. In establishing user determined quotas, customers can set their own limits on what they want to be able to purchase at any one time or over a set period of time and be notified they are going over that limit, within the bounds of all applicable laws and regulations. This voluntary service encourages customers to set their own boundaries regarding cannabis use, promoting responsible use and helping our patrons be mindful and aware of cannabis and substance use disorders. RESOURCE TABLES Harvest will work to have resource tables for patrons to access services, care and supp ort. Examples of resource tables may include: Cancer Support Groups Cancer has long been qualifying medical condition in various states with a legal medical cannabis landscape. Patients who are struggling with the physiological or mental effects of a cancer diagnosis or chemotherapy treatment may attend our educational seminars. To help support this population, Harvest will provide resources to local support groups such as the Hearst Cancer Resource Center and Cancer Support Community of California Central Coast. Veteran Service Organizations Harvest is committed to serving our nation’s heroes. Several resource tables will be available linking veterans to beneficial programs and services, including PTSD support groups, the VFW, SLO Veterans Services Collaborative and local American Legion chapters. 18 HARVEST OF SAN LUIS OBISPO, LLC Food Bank Coalition of San Luis Obispo County Families that attend these seminars may be struggling financially because of tragically expensive healthcare and costly prescriptions. Harvest wants these families to have access to the resources offered by the Food Bank Coalition of San Luis Obispo County. COMMUNITY AND YOUTH DRUG PREVENTION The following narrative is excerpted from the Education Plan. Harvest wants the residents , and especially the youth, of SLO to know that the unlawful use of cannabis has severe consequences. Although recreational cannabis is legal in the State of California, there are still current penalties for recreational use by persons under the age of twenty-one and medical use without a recommendation. To raise awareness about the penalties for the unlawful use of cannabis, Harvest would like to partner with the San Luis Obispo Police Department and the San Luis Obispo County Sheriff's Department to hold community discussions. It is important that our community works together to denounce and discourage the unlawful use of cannabis in our community. To facilitate a future partnership, our Director of Community Outreach will reach out to Chief of Police Deanna Cantrell of the San Luis Obispo Police Department to discuss community benefits and events. During these community discussions, Harvest will solicit feedback from the community which is essential to understanding the best way to reach our neighbors. There is abundant misinformation about the use of cannabis and the consequences of unlawful use. Harvest will promote these community discussions through traditional media and social media. In order to drive attendance to these important events, Harvest will encourage the San Luis Obispo Police Department and local elected officials to promote the community discussions as well. We hope to hold these community discussions at a SLO library or another publicly available location, as permitted by the City, so that students and young people can have access to this vitally important information. Harvest is happily prepared to facilitate and sponsor these discussions. Especially given the proximity of California Polytechnic State University, we at Harvest feel we have a responsibility to the youth in the area to provide meaningful, accurate information about cannabis, including cannabis use disorder and special considerations of cannabis on the development of the adolescent brain. These events will be incredibly productive because social media makes students especially vulnerable to bad information about cannabis and drug use. We believe that students must be empowered with the right information in order to make healthy and productive decisions. SAFE STORAGE Safe cannabis product storage is extremely important to prevent youth access to cannabis goods. Staff will instruct customers at our facility and the community during our outreach 19 HARVEST OF SAN LUIS OBISPO, LLC efforts to follow Center for Disease Control (“CDC”) guidelines on safe medicine storage to prevent access by children and unauthorized individuals, including Storing cannabis goods out of children’s reach and sight; Putting cannabis goods away after every use; Ensuring packaging is secure; Teaching children and guests about cannabis goods’ safety and legality; and Being prepared in case of an emergency (e.g., have the number for poison control readily available). In addition to educational materials, we will freely distribute the Up and Away Brochure, published by the Up and Away and Out of Sight program in conjunction with the CDC. Patrons will also be instructed on best practices for preventing spoilage and contamination by storing the containers in a cool, dry location. ACCIDENTAL INGESTION Patients and consumers will be instructed on conservative dosing strategies and product variation in onset and duration of effects to prevent accidental over-ingestion. Education materials containing this information will also be freely distributed. Patients and consumers will also be educated on proper storage, as described above, to prevent accidental ingestion by children and unauthorized individuals. Education materials and product labels will prominently display the following warning: “KEEP OUT OF REACH OF CHILDREN.” Should accidental ingestion occur, patients and consumers will be instructed to immediately contact emergency response personnel. COMMUNITY EDUCATION AND INFORMATION The following narrative is excerpted from the Education Plan. Harvest is committed to providing patients and consumers with educational services and programs to enhance understanding of the California commercial cannabis program and the overall benefits associated with it. As we have done in other states, we will continuously stay informed of new legal developments at both the local and state levels and actively provide the most current and accurate information and guidance to the community. At the dispensary and on our website, we will provide educational materials and pamphlets about the effects of cannabis sourced from licensed commercial cannabis testing facilities as well as academic and scientific institutions. We will also provide information about certain cannabinoids, strains, and manufacturing methods and practices. If not prohibited by SLO or other governmental entities, Harvest intends to produce and distribute quarterly newsletters to all customers and interested community members, keeping them abreast of Harvest’s involvement in the larger California cannabis community including the opening of new stores, any new seminars, and important updates to state or local cannabis laws. A sample of one such newsletter from a Harvest facility in Arizona is included in this application. 20 Community Benefit Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC TABLE OF CONTENTS Executive Summary ........................................................................................................ 4 Commitment to Compliance ........................................................................................ 4 Director of Community Outreach ..................................................................................... 5 Charitable Volunteer Work .............................................................................................. 6 Previous Charitable Volunteer Work ............................................................................ 6 Future Charitable Volunteer Work ............................................................................... 7 Philanthropic Giving ........................................................................................................ 9 Previous Philanthropic Giving ...................................................................................... 9 Future Philanthropic Giving ......................................................................................... 9 Educating and Empowering the Community ................................................................. 10 Monthly Education Classes ....................................................................................... 11 Community and Youth Drug Prevention .................................................................... 14 Community Education and Information ...................................................................... 15 Positive Economic Impacts ........................................................................................... 16 Investing in the SLO Economy .................................................................................. 16 Hiring SLO Residents ................................................................................................ 17 Modest Income Principals .......................................................................................... 19 Progressive Employment Benefits ............................................................................. 20 Hiring Practices ............................................................................................................. 21 Staff Acquisition Process ........................................................................................... 22 Responsibilities .......................................................................................................... 22 Eligibility ..................................................................................................................... 23 Reference Check ....................................................................................................... 23 Discriminatory Practices ............................................................................................ 24 Documentation .......................................................................................................... 24 Management and Evaluation ..................................................................................... 24 Americans for Safe Access Patient Focused Certification ......................................... 25 Diversity Plan ................................................................................................................ 25 Employment Diversity Advisor ................................................................................... 26 Compassionate Services and Product Discounts .......................................................... 28 Healing Our Heroes ................................................................................................... 29 Harvest Cares ............................................................................................................ 29 Community Service Discount ..................................................................................... 29 1 Proposed Location Suitability and Neighborhood Compatibility .................................... 30 Location Accessibility ................................................................................................. 32 Community Relations Plan ............................................................................................ 33 Community Point of Contact: Director of Community OUtreach ................................ 33 Elimination of Cannabis Odor and Olfactory Stimulus ............................................... 35 Reducing Common Visual Observation ..................................................................... 35 Mitigating Light Pollution ............................................................................................ 36 Enhancing Security and Preventing Diversion ........................................................... 37 Responsible Advertising ............................................................................................ 37 Responsible Messaging on Packaging ...................................................................... 38 Conclusion .................................................................................................................... 38 2 Description of Criteria Page # Section 1: Community Benefit 1.1 A) Over 90% of employees will be San Luis Obispo County residents 17, 18 1.2 A) Over 80% of supple and equipment expense (non-labor, non-rent expense) will be sourced from businesses with 90 miles 16 1.1 B) Providing over 20 hours per month of community support 4, 7 1.2 B) Provide over $1,000.00 per month of community support 4, 8, 9 1.3 B) Applicant can demonstrate a history of supporting local community programs 6, 9 Section 3: Equity and Labor 3.1) Applicant includes 3 or more principals with 2% equity or higher who have earned at or below the median household income at the time of application 19 3.2) Business will have an average pay rate for entry and mid-level positions of at least 40% more than the median local income for similar positions in other mainstream businesses 20 3.3) Base wages of employees exceed the minimum wage by at least $3.00/hour 20 3.4) Business will allow “labor peace agreement” at 20 or more non-management employees 19 Section 4: Messaging 4.1) Applicant commits to responsible use messaging practices 12, 13 4.2) Business articulates strategy to keep cannabis from being diverted to minor including advertising that is appropriately targeted to adult audiences 12, 13, 37 4.3) Business promotes responsible use including messaging on packaging, offering lower dose THC product options, offering to track use via “user determined quotas,” posing information on cannabis use disorder and cautions re: development of the adolescent brain 9, 12, 13, 14, 38 Section 5: Medical Retail Commitment 5.1) Applicant commits to provide retail medical cannabis products to consumers 10 Section 7: Financial Investment 7.2) Applicant commits to major improvements, including façade rehabilitation, building expansion, site improvements, removing visual blight, and/or other investments in an underutilized/underdeveloped site that has been zoned for commercial use for a commercial cannabis facility 30, 35 7.3) The proposed cannabis business site can accommodate the required number of parking spaces and safe and convenient access for customers/employees 30, 32 3 EXECUTIVE SUMMARY Benevolence is built into our company’s ethos and business plan. At Harvest of San Luis Obispo LLC (“Harvest”), we believe that cannabis businesses have an obligation to the health and well-being of their patients, consumers, and the neighborhoods in which they operate. Community engagement and philanthropy are core company values that we at Harvest feel directly contribute to the public health, welfare, and safety of a community.1 These values require a direct relationship with not only a community’s leaders, but also its residents. Harvest will work with the City of San Luis Obispo (“SLO”) residents and organizations to create positive social impacts across the community. Director of Community Outreach Jason Kallen has already begun to connect and engage with SLO neighborhood leaders like Chief of Police Deanna Cantrell of the San Luis Obispo Police Department, Eryka Santoyo with Family Care Network, and Patty Carpenter with Big Brothers Big Sisters of SLO County. Our Community Benefits Plan includes: Donating no less than thirteen thousand ($13,000) a year, more than $1,000 every month, to support non-profits and charities; Organizing quarterly community service projects and incentivizing our staff to perform more than twenty (20) hours of community support per month; Generating positive economic benefits and incentives for SLO by investing $1.3 million into the local economy in 2019 alone; Hosting public education seminars; and Preventing and mitigating nuisances. COMMITMENT TO COMPLIANCE Harvest’s Community Benefits Plan, proposed operations, and the procedures addressed herein are compliant with: 1 City of San Luis Obispo Municipal Code (“CSLOMC”) § 9.10.110. 4 The Medicinal and Adult-Use Cannabis Regulation and Safety Act MAUCRSA”); The California Bureau of Cannabis Control (“BCC”) regulations; The California Department of Public Health (“CDPH”) regulations; The California Department of Food and Agriculture (“CDFA”) Regulations; The SLO Municipal Code; and All other applicable state and local laws, regulations, ordinances and other requirements. Harvest is committed to maintaining compliance with all applicable laws and regulations and is constantly monitoring developments across all levels of government to ensure the company quickly and efficiently adapts to any new or amended requirements.2 Harvest and its employees diligently monitored the progress of the proposed regulations set forth by the BCC and the CDPH which were under review with the Office of Administrative Law, and understand that final regulations were adopted as of January 16, 2019. Harvest has reviewed these final regulations and implemented changes to the company’s proposed operations to ensure complete compliance at all times with all applicable laws and regulations. Finally, Harvest understands that its facility is subject to inspection at any time during the hours of operation without notice to determine compliance with the rules above by representatives of the State of California and representatives of SLO.3 Harvest understands these inspections will also cover any terms and conditions of the Commercial Cannabis Operator Permit or any other City permit or state license, that inspectors may copy recordings and records, and that samples of cannabis and cannabis products may be taken to test for law enforcement and/or public safety purposes.4 As such, Harvest will have a plan set forth for these inspections and all company employees will fully cooperate with the requirements of such inspections. No Harvest employees will refuse to allow, or try to impede, obstruct, or interfere with any inspection, nor will they conceal, destroy, alter or falsify any recordings or records. Harvest will not begin operations until it has passed all required state and local inspections and has obtained its state Cannabis Retailer license, Commercial Cannabis Operator Permit and use permit from SLO. DIRECTOR OF COMMUNITY OUTREACH Jason Kallen, Harvest’s Director of Community Outreach, will administer the Community Benefits Plan. Mr. Kallen will be responsible for developing measurable outcomes and ensuring the facility continues to meet its commitment to the community. He will also be 2 CSLOMC § 9.10.170. 3 CSLOMC § 9.10.060(B); CSLOMC § 9.10.130 (A). 4 CSLOMC § 9.10.140 (A)(C). 5 responsible for forming strategic philanthropic partnerships in the community to implement and enhance the Community Benefits Plan. Mr. Kallen is a proud California native with years of involvement in both cannabis cultivation and manufacturing. His early experiences in this industry inspired his advocacy for patients, who often were unable to obtain quality cannabis goods grown in compliant facilities with thorough testing. Quality is obviously important for any consumer, but can be absolutely crucial to vulnerable patient populations who may have compromised immune systems. As an Advisory Board Member for Monterey County NORML, and later as Executive Director for SLO’s NORML chapter, Mr. Kallen works tirelessly to advocate for consumers to ensure they have access to high quality cannabis that is safe, convenient and affordable. He is deeply committed to the local community at large, and spearheaded SLO NORML’s Share the Warmth Jacket Drive, which successfully collected roughly two hundred (200) winter jackets to help SLO’s homeless stay warm last winter. Harvest believes Mr. Kallen has the perfect combination of values and experience to ensure that our company becomes a well- respected and beneficial member of the SLO community. Before operations begin, Mr. Kallen will visit the tenants and owners of all buildings in the vicinity of our facility to provide his contact information and to encourage them to reach out immediately at any time should they have questions or concerns. His name and contact number will be prominently displayed at the facility to further facilitate engagement. CHARITABLE VOLUNTEER WORK In addition to providing a range of compassionate services for our clients, we plan to invest in the health of our community through a combination of impactful volunteer work and philanthropy that seeks to give back to the people of SLO who have graciously allowed us to operate in their community. Harvest has a proven history of generous contributions and service in all of the communities in which it operates, and will carry that same company ethos to SLO if given the opportunity to operate a retail cannabis establishment. PREVIOUS CHARITABLE VOLUNTEER WORK Harvest has a deep history of helping the community through direct action volunteer events, creative partnerships, workshops and fundraisers. Collected winter jackets for the Share the Warmth Jacket Drive. 6 In 2014, Harvest created a 501(c)(3) non-profit organization called Harvesting Hope. This organization provides services and resources for young children suffering from pediatric epilepsy. Harvesting Hope has provided services to more than one hundred (100) families and their children, including guidance on cannabis use for seizure control, educational seminars and introductions to medical specialists. Harvesting Hope has also raised and distributed over thirty thousand dollars ($30,000) to families to assist with their children’s medical needs. Recognizing that cannabis provides needed relief for veterans and other individuals suffering from PTSD, Harvest partnered with the organization Help Me PTSD, sponsoring and providing resources to Help Me PTSD workshops and events. Harvest has also partnered with Quality Connections, a non-profit organization, to employ individuals with special needs at our facilities. This program creates economic opportunities and a sense of identity for a population that needs support. We plan to employ similar programs at our other facilities throughout California. FUTURE CHARITABLE VOLUNTEER WORK Our company is committed to being a responsible neighbor and creating a positive impact in the community. Once a quarter, Harvest will sponsor and host neighborhood activities that offer support to SLO’s most vulnerable citizens. Harvest employees will be encouraged to regularly participate in activities to support the local community, with a company goal of providing more than twenty (20) hours of charitable volunteer work per month. BICYCLE AND WHEELCHAIR REPAIR For customers who use a wheelchair to accomplish their daily tasks, maintenance issues and unfriendly facilities can severely impact their mobility and access to basic resources. For Harvest employees volunteering at a community event. 7 customers who use bicycles as his or her main mode of transportation, lack of access to tune-ups and simple repair parts can have devastating effects on the ability to get around, including access to jobs and families. As a preventative measure, Harvest plans on hosting free bicycle and wheelchair repair clinics. Harvest will set up temporary wheelchair and bike stands where volunteers can perform free tune-ups and replace simple bicycle parts such as tires, tubes, chains and brake cables. Harvest will operate these tune-up services by receiving donations and purchasing parts from local suppliers. In anticipation of this service, Harvest’s Director of Community Outreach Jason Kallen has been in contact with Bike SLO County, which runs San Luis Obispo County’s Bike Kitchen. This group offers bicycle maintenance education in a safe environment for individuals from all walks of life, many of whom do not have access to professional bike repair services. Harvest hopes to work with Bike SLO County to engage with the community at a more granular level, utilize their expertise for bicycle and wheelchair repair, as well as cross- promote events so more members of the community are aware and can take advantage of this service. As a demonstration of our commitment to support the community and Bike SLO County, we have attached a letter from Harvest CEO Steve White pledging thirteen thousand dollars ($13,000) per year toward their noble cause, should Harvest be granted a license. See attached Letter of Commitment: Bike SLO County on page 39.) FOOD DRIVE Summer months are particularly difficult for food-insecure families because their children can no longer rely on free or reduced meals at school. This leaves many children scrambling to find their next meal while their parents are at work. To support food-insecure families, Harvest will host a food drive in June to support the Food Bank Coalition of San Luis Obispo County. Harvest will donate money and collect donations as well. In addition to providing financial support, we will encourage all our employees and clients to bring non-perishable food items to be donated. BACK TO SCHOOL DRIVE During the month of August, Harvest will sponsor and collect donations for a back to school drive to benefit SLO school children. We will purchase backpacks and school supplies for children in need with the goal of distributing the supplies at various back to school fairs held throughout the Central Coast region. COMMUNITY PARK CLEANUP Harvest and our employees will host annual community park clean ups. SLO families deserve a place to play that is safe and tidy. Harvest will work with community leaders to identify 8 which parks—like Emerson, Sinsheimer, Islay Hill or Santa Rosa—need the most care and will prioritize those first. PHILANTHROPIC GIVING Philanthropic giving is built into our business plan. Our founders have always believed in connecting our success with the success of the community. As such, we will donate a percentage of our profits to local charitable causes. We have established philanthropy programs in nearly every state in which we operate, from Arizona to Maryland to California. PREVIOUS PHILANTHROPIC GIVING Harvest has a demonstrated history of supporting local organizations. Since 2013, Harvest has donated more than $500,000 to veterans, seniors, patients in need and local charitable organizations including Justa Center, Arizona Epilepsy Foundation, Climb to Conquer Cancer, Ryan House, Bosom Buddies, Humane Society and the American Cancer Society. Harvest intends to engage in equally productive and beneficial philanthropic partnerships in SLO. We recently committed thousands of dollars to benefit non-profits such as the Merced County Food Bank and United Way of Merced in Merced, California when we opened a store in that community. FUTURE PHILANTHROPIC GIVING If granted a permit and given the opportunity to open our business in SLO, Harvest intends to fully commit to the community. As such Harvest will donate, at a minimum, thirteen thousand dollars ($13,000) a year in monetary contributions to a variety of local charitable and community organizations, which translates to more than one thousand dollars ($1000) per month in support to the local community. Harvest believes that well-funded health and social services programs are the bedrock of a thriving community. We will work with SLO residents to identify programs where these contributions will make the greatest impact. Harvest has already been proactive in our outreach to local groups in SLO. Attached to this narrative are letters from Steve White, CEO of Harvest, to two (2) local charities pledging thirteen thousand dollars ($13,000) per year each toward their respective causes should Harvest be granted a license. (See attached Letter of Commitment: Big Brothers Big Sisters of SLO County on page 40; Letter of Commitment: Family Care Network on page 41.) Both Big Brothers Big Sisters of SLO County and Family Care Network are organizations focused on helping youth in the community, Big Brothers Big Sisters through mentoring and fostering one-on-one relationships, and Family Care Network through creating family-based treatment programs as an alternative to group home or institutional care of children and youth. Harvest firmly believes that supporting youth to make positive choices while they are young can change the trajectory of a life, and assist in our own goals of preventing under-age cannabis use. By establishing relationships with these impactful organizations, we can help inform those who may not otherwise know about the potential harm of cannabis on the development 9 of the adolescent brain and assist in spreading that message directly to the implicated population. Our Director of Community Outreach has also identified the following additional local organizations as potential community partners and recipients of our philanthropy: Community Action Partnership of San Luis Obispo (CAPSLO) In 2017 alone, CAPSLO served thirty-six thousand (36,000) people across San Luis Obispo County and other central Californian counties. CAPSLO helps individuals and families break the cycle of poverty and achieve self-sufficiency and economic stability through programs that focus on: o high-quality early childhood education; o accessible, affordable dependent care; o addressing barriers to safe, affordable housing and basic needs; o health services and education; and o resource connection and navigation. Food Bank Coalition of San Luis Obispo County Too many of our neighbors, friends and children in SLO suffer from food insecurity. In addition to supporting the Food Bank Coalition of SLO County by food drives, Harvest intends to support the organization’s Nourish our Future Campaign, which is raising funds for a new Food Bank facility right in SLO, centrally located to meet the needs of the citizens of our community for the next twenty-five (25) years. Friends of 40Prado In a region that has declared homelessness a crisis, it is imperative to support those assisting homeless individuals find a level of self-sufficiency. The Prado Day Center is the only day center serving the homeless population in the region, seeing between ninety (90) to one hundred (100) individuals a day, many of whom are women and children. By supporting those who help the most vulnerable of our citizens, Harvest hopes to help diminish this growing issue. EDUCATING AND EMPOWERING THE COMMUNITY The following narrative is excerpted from the Education Plan. We believe education equals empowerment. As such, Harvest will take a proactive approach to educating the City of San Luis Obispo (“SLO”) about our business and the services we provide. Public education seminars will cover a wide range of topics, from the benefits of medical cannabis to the legal ramifications of unlawful use. As both an adult-use and medial cannabis facility, our duty is amplified to ensure customers and patients alike are provided the most up-to-date information available. Harvest will guide participants through a 10 comprehensive healthcare experience. While our primary product is cannabis, we hope to provide a holistic understanding of healthcare for our patients and neighbors in the community. Harvest has developed strategic goals for our community education programs including: Educating California patients and the general public about the benefits of cannabis; Fostering an inclusive environment where neighbors feel safe asking questions about our operations and philanthropy; Offering resources to vulnerable families; Developing relationships with neighborhood leaders and elected officials; Working with law enforcement to increase awareness of the consequences of illegal use of cannabis; and Promoting a holistic healthcare experience. MONTHLY EDUCATION CLASSES Monthly education classes will be held for both qualified and registered patients and adult consumers to cover a variety of topics, including California and SLO commercial cannabis rules and regulations, methods of consumption, dosage and serving size suggestions, cooking, and general information on safe and responsible use. As the need for various educational classes arises, Harvest will adjust the monthly class schedule to best serve the greater needs of the patient and consumer base. Many of the seminars will be hosted by Dr. William D. Troutt, Harvest’s Director of Cannabis Education. Dr. Troutt has hosted workshops for patients across the country and specializes in cannabis-based medicine and treatment. He was the first Medical Director of a state- licensed dispensary in Arizona, and currently serves as the Senior Medical Advisor for all seven (7) sister Harvest dispensaries in Arizona and one (1) in California. Dr. Troutt’s knowledge and experience with medical cannabis extends to a wide variety of topics, including its use for controlling seizure disorders. He has presented on the therapeutic effects of cannabis at many venues including an Adult Epilepsy Conference, support groups at Banner Hospital and Mayo Clinic, and the Harvesting Hope pediatric epilepsy empowerment group. Dr. Troutt has also conducted primary research on the therapeutic effects of cannabis, publishing two academic studies focused on safe and efficacious cannabis use. Dr. Troutt will not make any individual recommendations for medical or medicinal cannabis as part of his involvement with Harvest.5 5 CSLOMC § 9.10.070 (C)(5). 11 Local officials, including those from surrounding communities, will be invited to participate in these public education seminars. Elected officials play an important role in the healthcare of their constituents. Moreover, their voice is needed as new laws regulating cannabis are implemented. Harvest hopes to empower our elected officials with the requisite knowledge about this unique new medicine. Some educational sessions will be open to the public and will include talks by local and national experts regarding general health, diet, exercise, stress management, and other important holistic and self-care wellness-related topics. These sessions will be held off of the dispensary facility premises. Sessions specifically focused on cannabis consumption, such as how concentrates differ from flower and how to properly administer medical cannabis, will be limited to verified adult customers and patients. Absolutely no cannabis will be consumed at the facility by employees or clientele either during these sessions or at any other time. Our goal is to foster an inclusive environment where neighbors feel safe asking questions about our operations, products and philanthropy. Neighborhood associations, area nonprofits and local businesses will be invited to participate. It is important to hear the community’s voice and ensure that community members’ needs are incorporated into our company’s mission. SAFE AND RESPONSIBLE CANNABIS USE Safe and responsible cannabis use will be stressed at each education class, regardless of the underlying topic. Attendees will be advised on conservative dosing strategies, variation in onset and duration of effects, potential side effects, contraindications, drug interactions, potential adverse effects, and recognizing cannabis and other substance use disorders. Staff will also inform attendees how metabolism and rate of ingestion due to factors such as age, weight, tolerance, current nutrition levels and other factors that may affect a consumers’ experience. TRACKING AND USER DETERMINED QUOTAS As part of Harvest’s commitment to responsible cannabis use and education, Harvest will promote tracking one’s individual cannabis usage and establishing individualized quotas. Tracking cannabis usage is advisable for all cannabis users in order to monitor how much cannabis is being used or consumed, but is especially important for medical cannabis patients. Tracking one’s purchases and experiences can help provide clarity when determining what product to try in the immense array of cannabis products, and can help determine the ideal strain, administration method, potency, or dosage to best suit one’s individual needs. This information can also be useful for our staff to assist patrons by eliminating products that do not suit that individual’s preferences and needs. 12 Sample cannabis journal for individuals to monitor their cannabis usage. By tracking cannabis usage, customers not only can gain information on what cannabis products they most enjoy and that best suit their needs, but can also be aware if their usage begins to continuously increase or become problematic. In establishing user determined quotas, customers can set their own limits on what they want to be able to purchase at any one time or over a set period of time and be notified they are going over that limit, within the bounds of all applicable laws and regulations. This voluntary service encourages customers to set their own boundaries regarding cannabis use, promoting responsible use and helping our patrons be mindful and aware of cannabis and substance use disorders. RESOURCE TABLES Harvest will work to have resource tables for patrons to access services, care and support. Examples of resource tables may include: Cancer Support Groups Cancer has long been qualifying medical condition in various states with a legal medical cannabis landscape. Patients who are struggling with the psychological or mental effects of a cancer diagnosis or chemotherapy treatment may attend our educational seminars. To help support this population, Harvest will provide resources to local support groups such as the Hearst Cancer Resource Center and Cancer Support Community of California Central Coast. 13 Veteran Service Organizations Harvest is committed to serving our nation’s heroes. Several resource tables will be available linking veterans to beneficial programs and services, including PTSD support groups, the VFW, SLO Veterans Services Collaborative and local American Legion chapters. Food Bank Coalition of San Luis Obispo County Families that attend these seminars may be struggling financially because of tragically expensive healthcare and costly prescriptions. Harvest wants these families to have access to the resources offered by the Food Bank Coalition of San Luis Obispo County. COMMUNITY AND YOUTH DRUG PREVENTION Harvest wants the residents, and especially the youth, of SLO to know that the unlawful use of cannabis has severe consequences. Although recreational cannabis is legal in the State of California, there are still current penalties for recreational use by persons under the age of twenty-one and medical use without a recommendation. To raise awareness about the penalties for the unlawful use of cannabis, Harvest would like to partner with the San Luis Obispo Police Department and the San Luis Obispo County Sheriff's Department to hold community discussions. It is important that our community works together to denounce and discourage the unlawful use of cannabis in our community. To facilitate a future partnership, our Director of Community Outreach Jason Kallen is in communication with Chief of Police Deanna Cantrell of the San Luis Obispo Police Department to discuss community benefits and events. During these community discussions, Harvest will solicit feedback from the community which is essential to understanding the best way to reach our neighbors. There is abundant misinformation about the use of cannabis and the consequences of unlawful use. Harvest will promote these community discussions through traditional media and social media. In order to drive attendance to these important events, Harvest will encourage the San Luis Obispo Police Department and local elected officials to promote the community discussions as well. We hope to hold these community discussions at a SLO library or other approved public forum so that students and young people can have access to this vitally important information. Harvest is happily prepared to facilitate and sponsor these discussions. Especially given the proximity of California Polytechnic State University, we at Harvest feel we have a responsibility to the youth in the area to provide meaningful, accurate information about cannabis, including cannabis use disorder and special considerations of cannabis on the development of the adolescent brain. These events will be incredibly productive because social media makes students especially vulnerable to bad information about cannabis and 14 drug use. We believe that students must be empowered with the right information in order to make healthy and productive decisions. SAFE STORAGE Safe cannabis product storage is extremely important to prevent youth access to cannabis products. Staff will instruct customers at our facility and the community during our outreach efforts to follow Center for Disease Control (“CDC”) guidelines on safe medicine storage to prevent access by children and unauthorized individuals, including Storing cannabis products out of children’s reach and sight; Putting cannabis products away after every use; Ensuring packaging is secure; Teaching children and guests about cannabis products’ safety and legality; and Being prepared in case of an emergency (e.g., have the number for poison control readily available). In addition to educational materials, we will freely distribute the Up and Away Brochure, published by the Up and Away and Out of Sight program in conjunction with the CDC. (See attached Educational Material: Up and Away Brochure on page 52.) Patrons will also be instructed on best practices for preventing spoilage and contamination by storing the containers in a cool, dry location. ACCIDENTAL INGESTION Patients and consumers will be instructed on conservative dosing strategies and product variation in onset and duration of effects to prevent accidental over-ingestion. Education materials containing this information will also be freely distributed. Patients and consumers will also be educated on proper storage, as described above, to prevent accidental ingestion by children and unauthorized individuals. Patient education materials and product labels will prominently display the following warning: “KEEP OUT OF REACH OF CHILDREN.” Should accidental ingestion occur, patients and consumers will be instructed to immediately contact emergency response personnel. COMMUNITY EDUCATION AND INFORMATION Harvest is committed to providing patients and consumers with educational services and programs to enhance their understanding of the California commercial cannabis program and the overall benefits associated with it. As we have done in other states, we will stay informed of new legal developments at both the local and state levels and actively provide the most current and accurate information and guidance to the community. At the dispensary and on our website, we will provide educational materials and pamphlets about the effects 15 of cannabis sourced from licensed commercial cannabis testing facilities as well as academic and scientific institutions. We will also provide information about certain cannabinoids, strains, and manufacturing methods and practices. Harvest intends to produce and distribute quarterly newsletters to all customers and interested community members, keeping them abreast of Harvest’s involvement in the larger California cannabis community including the opening of new stores, any new seminars, and important updates to state or local cannabis laws. A sample of one such newsletter from a Harvest facility in Arizona is included in this application. (See attached Educational Material: Harvest Newsletter on page 50.) POSITIVE ECONOMIC IMPACTS INVESTING IN THE SLO ECONOMY Harvest is committed to investing in the local SLO economy. As noted in our Pro Forma, Harvest will invest $1.3 million in the SLO economy to update a currently underutilized site into a modern and secure facility. When feasible, Harvest will use local SLO companies in the design, development and construction of the facility, as well as local trade services for all infrastructure needs (HVAC, electrical, plumbing, etc.). Our goal is to ensure that over eighty percent (80%) of our supply and equipment expenses are sourced from businesses within ninety (90) miles of our location. We will work closely with community members to identify local contractors to help with the initial and ongoing construction and build-out needs of the facility. SUPPORTING LOCAL SLO BUSINESSES We have proactively engaged with the following local vendors in the Central Coast region to potentially contract services, some of whom have provided Letters of Support for this application: KGM Construction, located at 1023 Nipomo Street Suite 200 in SLO and in local operation for over thirty (30) years, for general contractor services. Wighton’s, located at 183 Prado Road in SLO and serving the local community since 1953, for HVAC installation and maintenance. Rarig Construction, Inc., located at 4540 Broad Street Suite 110 in SLO and in local operation for over forty-five (45) years, for interior renovations. Dan’s Landscaping, located at 284 Higuera Street in SLO and in local operation for over ten (10) years, for landscaping services. Tri County Office Furniture, located at 3271 South Higuera Street in SLO and in local operation since 1984, for facility furniture needs. 16 SLO County Builder’s Exchange, located at 153 Cross Street in SLO and in local operation since 1949, for a variety of construction projects. Walker’s Office Supplies, located at 3621 Sacramento Drive in SLO and a local success story, growing to a business to business provider from humble stationary store beginnings, for our office supply needs. Coast Electronics, located at 1336 Madonna Road in SLO and in local operation since 1978, for our electronics needs. Central Coast Lock & Key, located at 12340 Los Osos Valley Road in SLO and in local operation for over thirty (30) years, for our lock installation and servicing needs. See attached Letter of Support: Walker’s Office Supplies on page 52.) HIRING SLO RESIDENTS The health of a community is directly correlated to the amount of jobs it provides. Harvest is excited to be an emerging employer in SLO. Especially in light of the upcoming closure of the Diablo Canyon Nuclear Power Plant and the expected loss of up to fifteen hundred 1,500) well-paying jobs, Harvest is particularly aware of our responsibility to the local community and economy. While Harvest will likely not be the fourth largest employer in the area in the near future, the company hopes that injecting the local economy with new jobs at this difficult juncture in the city’s history will help ease the loss of such a large employer, while simultaneously ensuring we are tapped into the local community to best serve the needs of our neighbors, patients and customers. Hiring local SLO residents is a cornerstone of our staffing plan: our goal is to ensure over ninety percent (90%) of our employees are from SLO and surrounding San Luis Obispo County. Locally-focused hiring stimulates economic growth in the community in which we are invested and it best serves our patients and customers. Therefore, we have developed strategic recruiting tools to ensure the vast majority of our employees are SLO and San Luis Obispo County residents. These strategic recruiting tools include: Offering hiring preferences for SLO residents; Incentivizing the Director of Human Resources to recruit from a pool of local applicants; Setting defined benchmarks to ensure Harvest is meeting its local hiring goals; Working with local job centers and other community-based development and placement services such as San Luis Obispo County Workforce Development Board and Cal Poly’s Career Services; and Advertising job posting in area publications such as The Tribune, New Times and SLO Life Magazine. Our goal is to be a major economic engine for SLO. We are committed to hiring a local, diverse and skilled workforce to create the best customer service experience for our clients. 17 Lastly, hiring local workers means Harvest will be uniquely qualified to understand the needs of the people we serve in SLO. LOCAL PRINCIPALS Harvest’s commitment to hiring ninety percent (90%) of our employees from San Luis Obispo County is not confined to our entry level positions. SLO community members will be represented at every level of our organization. In this pursuit, Harvest is excited to announce the inclusion of three (3) San Luis Obispo County residents as principals of the organization: Frances Esters, Courtney Guluarte and Jason Kallen. These locals will help guide Harvest’s operations in SLO and ensure we are considering local viewpoints in all our decisions. If Harvest is granted a license to operate in SLO, these individuals will also serve as employees. Mr. Kallen, Ms. Esters and Ms. Guluarte have each provided documentation of residency for inclusion in this application. Frances Esters Frances Esters is a principal of Harvest and will serve as Retail Facility Manager in the event of Harvest’s SLO licensure. Ms. Esters has been involved in the cannabis industry in Central California for a decade now. Notably, Ms. Esters began her career in cannabis in 2009 as the Facilities Manager for Harborside Health Center, the first medical dispensary to open in San Jose. Currently, Ms. Esters serves as a concierge for Twist Studio Spa, a high-end spa located in the small-town environment of Paso Robles, as well as running her own interior design business, The Elegant Tomboy. Ms. Esters is deeply engaged with the local community, previously serving as Secretary for the Board of Directors for the Salinas Valley Women’s Network. Her passion for advocacy and her compassion for patients inspired her to also take on a leadership role as the Communications Director for both the San Luis Obispo and Monterey County National Organization for the Reform of Marijuana Laws (“NORML”) chapters, which she still holds today. Ms. Esters has lived in San Luis Obispo County for two (2) years. (See attached Local Residency Documentation: Frances Esters on page 55.) Courtney Guluarte Courtney Guluarte is a principal of Harvest and will serve as a Product Acquisition Inventory Manager in the event of Harvest’s SLO licensure. Ms. Guluarte has been involved in the cannabis industry most of her life, having grown up around growers in Santa Cruz. She began assisting cultivation operations throughout the Central Coast as she got older and has an insatiable appetite for learning which has led her to take a multitude of different jobs in the cannabis industry. Her interactions with medical cannabis patients were particularly rousing and inspired her to lend her time to volunteer efforts. She is a frequent face at both the Paso Robles and San Luis Obispo Food Banks, helping to alleviate hunger and build a heathier community. Ms. Guluarte 18 has lived in San Luis Obispo County for twelve (12) years. (See attached Local Residency Documentation: Courtney Guluarte on page 54.) Jason Kallen As discussed above, Jason Kallen is a principal of Harvest and will serve as Director of Community Outreach in the event of Harvest’s SLO licensure. Mr. Kallen has been involved in a variety of aspects of the cannabis industry, from cultivation to manufacturing to advocacy as Executive Director of SLO NORML chapter. He was instrumental in organizing SLO NORML’s Share the Warmth Jacket Drive, and is looking forward to continuing his advocacy and outreach efforts as our liaison in the community in SLO. Mr. Kallen has lived in San Luis Obispo County for seven (7) years. See attached Local Residency Documentation: Jason Kallen on page 53.) EMPLOYEE REGISTRY As part of Harvest’s commitment to compliance, a register of the names and contact information, including address and telephone number, of all employees currently employed by the business will be maintained and made available to SLO officials upon request.6 LABOR PEACE AGREEMENT AND COLLECTIVE BARGAINING RIGHTS OF EMPLOYEES Harvest recognizes the collective bargaining rights of all our employees. If they so desire, any employee can negotiate contracts with Harvest through a union to determine their terms of employment, including pay, benefits, hours, leave, job health and safety policies, ways to balance work and family and more. Harvest believes that collective bargaining gives employees an opportunity to have higher wages, better benefits, and safer workplaces. If in the future Harvest’s employees decide to enter into collective bargaining negotiations, Harvest will unreservedly enter into negotiations that result in a collective bargaining agreement with which all parties are satisfied. Harvest will allow labor peace agreements once the location reaches twenty (20) or more non-management employees. MODEST INCOME PRINCIPALS Harvest is committed to serving as a diverse and representative organization in SLO. To us, this commitment is not confined solely to geographical representation, but income levels as well. In order to make the best decisions for our company and our engagement with the SLO community, we need a multitude of affected voices at the table. To this end, Harvest is very excited that our SLO team boasts three (3) principals with two percent (2%) equity or higher who earn at or below the median household income of San Luis Obispo County at the time 6 CSLOMC § 9.10.130 (D) 19 of this application. Jason Kallen, Frances Esters and Courtney Guluarte are all primary principals on the Harvest team and will serve as Director of Community Outreach, Retail Facility Manager and Product Acquisition Inventory Manager, respectively, in the event Harvest is granted a license in SLO. Harvest is grateful for not only for the knowledge and experience each of these individuals bring to our operations, but also their unique perspective in addressing accessibility for those living at or below the median household income. We at Harvest are deeply committed to making our products accessible for all qualified purchasers, so inclusion of all income levels in our management is crucial to ensuring the voices of those we are trying to reach are represented. Mr. Kallen, Ms. Esters and Ms. Guluarte have each signed an affidavit attesting to their low-income status for inclusion in this application. (See attached Low Income Attestation: Jason Kallen on page 56; Low Income Attestation: Courtney Guluarte on page 57; Low Income Attestation: Frances Esters on page 58.) PROGRESSIVE EMPLOYMENT BENEFITS A good-paying job is the cornerstone of the American middle class. Harvest is proud to offer all employees a living wage as well as robust healthcare benefits, because we recognize that a career can lift a family out of poverty. To be clear, encompassing the new California minimum wage of twelve dollars ($12) an hour, already higher than the federal wage of seven dollars and twenty-five cents ($7.25) an hour, all Harvest employees will earn, as a minimum base wage, eighteen dollars ($18) an hour, a full six dollars ($6) over California’s minimum wage per hour. We are excited to bring full-time, good paying jobs to SLO. Our entry and mid-level positions have an average pay rate of more than forty percent (40%) the median local income for similar positions in other mainstream businesses. As job creators, we have a moral obligation to ensure that all of our employees can provide for their families and have confidence in their career. Harvest will also provide paid sick leave to all employees. To better educate and inform its employees of the laws and regulations related to wage standards and paid sick leave, Harvest will post the proper Wage Standards and Wage and Sick Time Notices in a conspicuous place at its facility in English and any other languages spoken by at least five percent (5%) of its employees. PROVIDING A LIVING WAGE AND GENEROUS SALARY SCHEDULES Harvest is proud to offer all current and future employees a living wage and competitive compensation packages supplemented by periodic performance evaluations and opportunities for investment and promotion. In addition to offering employees a living wage, totaling a full six dollars ($6) more than the minimum wage, Harvest strongly believes in the philosophy of equal pay for equal work. We have worked diligently to eliminate pay disparities, guaranteeing men and women of all backgrounds have equal earning power. Indeed, 20 Harvest boasts an average pay rate for entry and mid-level positions of at least forty percent 40%) more than the medial local income for similar positions. (See attached San Luis Obispo Median Local Income Documentation on page 59.) Position Pay Scale Chief Executive Officer $80,000 - $100,000 per year President $80,000 - $100,000 per year Vice President of Retail Operations $80,000 - $100,000 per year Vice President of Design and Construction $80,000 - $100,000 per year Chief Financial Officer $80,000 - $100,000 per year Controller $80,000 - $100,000 per year General Counsel $65,000 - $85,000 per year Director of Human Resources $65,000 - $85,000 per year Director of Community Outreach $65,000 - $85,000 per year Director of Retail Operations $65,000 - $85,000 per year Director of Safety and Security Compliance $65,000 - $85,000 per year Facility Manager $65,000 - $85,000 per year Inventory Manager $65,000 - $85,000 per year Security Personnel $18 - $21 per hour Wellness Representative $18 - $21 per hour HEALTH CARE BENEFITS Harvest is committed to offering employees health coverage compliant with the Affordable Care Act, including coverage of essential health benefits such as: Primary Care Prescription Drug Coverage Emergency Services Dental and Oral Care Laboratory Tests, Screening and Services Maternity and Infant Care Pediatric Services Hospitalization Preventive and Wellness Services Behavioral Healthcare Ambulatory Patient Services Physical Therapy Rehabilitative and Habilitative Services and Devices Chronic Disease Management HIRING PRACTICES Harvest is committed to maintaining a sufficient number of employees possessing the skill sets and experience needed to ensure the success of all aspects of our operations. Harvest’s 21 personnel acquisition practices are in full compliance with the MAUCRSA, the BCC regulations, the CDPH regulations, the SLO Municipal Code, and all other applicable state and local laws, regulations, ordinances and other standards. The Director of Human Resources is responsible for determining the staffing requirements and the development and execution of a staff acquisition plan approved by the CEO. All contractors must be approved by the Director of Human Resources. STAFF ACQUISITION PROCESS The Director of Human Resources will coordinate with the CEO to acquire all necessary staff. The acquisition process may vary depending on the vacant position and any special circumstances including approval for a direct non-solicited hire. The acquisition process will be managed by the Director of Human Resources and typically involves the following: Identification of need; Identifying job classification and preparing job description; Soliciting candidates for the vacant position using methods that best fit the position including, but not limited to: o Internal posting; o Partner posting (e.g., consultants, non-profit partners, vendors, etc.); o External posting; o Temporary staffing agency; or o Executive search firm; Reviewing resumes and required job applications for qualified candidates including those with relevant experience and those with complementary skills and a strong potential for growth; Performing and recording reference checks on qualified candidates including: o Verification of address and education; o Verification of former and current employment; o Recording information from former supervisors on the candidate’s performance, if available; Scheduling first interviews; Scheduling second interviews (with strong candidates) with the direct supervisor; Delivering an offer letter to the first-choice candidate (as determined by the direct supervisor); Performing a criminal background check on the selected candidate to determine eligibility and to identify any other possible disqualifying items; Conducting new hire orientation and training; and Documenting completion of the probationary period. RESPONSIBILITIES 22 Harvest will follow industry standards regarding division of responsibilities in the acquisition processes: It is the responsibility of potential new hires to provide documentation of previous education and work experience; It is the responsibility of new hires and existing employees to participate in ongoing, in-house training programs; Managers are responsible for assigning job responsibilities consistent with their employees’ demonstrated qualifications; and The Director of Human Resources will be responsible for assuring all employees have the required qualifications and pass all required background checks. ELIGIBILITY Only individuals who are qualified to properly perform their assigned job responsibilities are eligible for employment with Harvest. All prospective employees must be twenty-one (21) years of age or older.7 The Director of Human Resources will ensure all employees have the required qualifications and employee background checks prior to hire, which include fingerprinting. We believe in providing economic and employment opportunities to community members in the immediate vicinity of Harvest’s business. As such, Harvest will make a good-faith effort to have over ninety percent (90%) of its workforce’s weekly hours performed by employees whose primary place of residence is in San Luis Obispo County. Harvest will not hire any person that is ineligible under state or local law or company policy. However, in an effort to assure impacted persons have the opportunity to work for Harvest but do not threaten the security or safety of our operations, Harvest will consider the eligibility of each applicant with a criminal record on a case-by-case basis. The general internal policy is not to hire anyone for a position in the company who has a history of theft, fraud, drug related convictions involving minors or violence. REFERENCE CHECK Applicants will be required to provide two (2) references that confirm their character and skillset. Other items discovered through the reference check process may be considered when making a hiring decision including, but not limited to: Unverifiable resume or application statements; Negative reference checks or an inability to obtain a positive reference from any former employers; and Lack of stability in work history or residence without a reasonable explanation. 7 CSLOMC § 9.10.230 (D). 23 DISCRIMINATORY PRACTICES Harvest does not discriminate in hiring or operating decisions. All managers and supervisors must comply with all Equal Employment Opportunity Commission (EEOC) guidelines when managing staff issues. No internal policies or practices may discriminate based on or conflict with laws regarding discrimination on the basis of: Race; Height & Weight; Credit Rating or Economic Status; Religious Affiliation or Beliefs; Citizenship; Marital Status or Number of Children; Gender; Arrest and Conviction; Disability; and Medical History and Examinations (beyond assuring applicant can complete any physical tasks required of the position in question). DOCUMENTATION In accordance with industry standards, only individuals who are qualified to properly perform their assigned job responsibilities will be hired to work at Harvest’s facility. Harvest will document all employee qualifications and confirmation of their eligibility for employment under applicable California and SLO regulations and Harvest policies. Internal personnel records will include, at minimum, the following: Employee full name; Social security number or individual tax payer identification number; Date employment begins; If applicable, date of termination of employment; Documents provided during the application and interview process, including resume; Record of pre-hire due diligence activities, including outreach to personal references and background check, if applicable; Copy of employee identification badge; and Training records. In conclusion, Harvest will hire the most qualified local applicants to serve the people of SLO. MANAGEMENT AND EVALUATION The Director of Retail Operations is responsible for the day-to-day operations and the delegation of duties to and the oversight of managers. The Delivery Manager will also 24 supervise the performance evaluations, performance issues and recognition, promotions and disciplinary actions in their department. PERFORMANCE REVIEWS The Director of Retail Operations is required to communicate the following information: All necessary information on employee performance to all managers and Director of Human Resources as often as necessary; Verbal feedback to employees regularly; and Formal performance reviews at least annually and at the end of any probationary period. AMERICANS FOR SAFE ACCESS PATIENT FOCUSED CERTIFICATION Harvest currently operates two (2) Medical Retail Facilities that have received a “Patient Focused Certification” through the organization Americans for Safe Access (ASA). ASA is the premier organization for patient safety and advocacy. This prestigious organization trains doctors and registered qualifying patients on the use of medical marijuana. Patient Focused Certification (PFC) is a program that patients, healthcare providers, companies and regulators can depend on to identify reliable medical cannabis products and services. The certification program is based on the new high-quality standards for medical cannabis products and businesses that are issued by the American Herbal Products Association AHPA) and the American Herbal Pharmacopeia (AHP) Cannabis monograph. To obtain the certification, Harvest conducted extensive employee training, completed a facility audit, participated in product testing, made suggested corrective actions and audited all records. Harvest will obtain certification for the SLO retail facility and continue to uphold the program’s objectives. A primary objective of PFC that Harvest will emphasize at the SLO retail facility is educating employees in the areas of protocols and procedures in all operations with an emphasis on both regulation and best practice. DIVERSITY PLAN Our strength as a company is and will be defined by the opportunities created for everyone, especially people of color, veterans, women, the LGBTQ community and other disadvantaged or underrepresented communities. This means harnessing California’s rich and diverse heritage and putting policies and procedures in place to ensure Harvest will help make the legal cannabis industry as accessible and beneficial for the disadvantaged and underrepresented as it has been for primarily white, wealthy, male-dominated businesses in other states. Harvest will foster an environment where personal identity, heritage, race, gender, language, age and military service are recognized as assets and those assets are celebrated, respected and valued. To meet these commitments, Harvest has developed a 25 strategic Diversity Plan that will guide our principles, decisions and actions, both as an organization and as representatives of Harvest. EMPLOYMENT DIVERSITY ADVISOR Harvest will appoint an Employment Diversity Advisor to oversee the development and implementation of our diversity policies and practices. The Employment Diversity Advisor is responsible for setting goals, implementing strategies and analyzing metrics of success. The Employment Diversity Advisor has outlined five (5) goals, detailed below, to ensure the involvement of persons from underrepresented or disadvantaged communities in ownership, management and employment. With respect to setting metrics to measure minority and veteran participation in our workforce and vendor partnerships each financial quarter, the Employment Diversity Advisor will produce a report that analyzes the backgrounds of employees in the company. The analysis will show what percentage of those positions are filled by target underrepresented or disadvantaged populations. If the analysis indicates persons from underrepresented or disadvantaged populations do not make up a satisfactory proportional share of the workforce, the team must develop new strategies to obtain this goal. GOAL #1: INCREASE DIVERSITY IN THE WORKPLACE Strategy 1.1: Recruit Candidates from Disadvantaged and Underrepresented Communities Harvest values a diverse work force and promoting opportunities for disadvantaged and underrepresented persons. As such, Harvest will implement plans to recruit and employ persons from disadvantaged and underrepresented communities. Strategy 1.2: Utilize Data-Driven Analytics to Measure Applicant Flow Data The Director of Human Resources will regularly analyze job applicants and recruitment data to ensure hiring strategies reflect the goals of this diversity plan. The data-driven approach will inform efforts to increase diverse representation in the workforce. Strategy 1.3: Offer Competitive Benefits and Equal Pay for Equal Work Harvest will continue to offer equal pay for equal work and progressive healthcare benefits. GOAL #2: INCREASE DIVERSITY IN MANAGEMENT POSITIONS Strategy 2.1: Develop Diversity Mentorship Programs Harvest will actively offer diversity mentorship programs to all employees from underrepresented or disadvantaged communities who express interest in executive and 26 managerial positions. This mentorship program will provide managerial training and include other opportunities for professional development. Strategy 2.2: Provide Diversity and Inclusion Training for All Managers Harvest will require all managers to be trained to fulfill the company’s diversity and inclusiveness commitments, which will include instruction regarding respect, cross-cultural communication, identifying and addressing discrimination and best practices for implementation of the Diversity Plan. As a condition of employment, all managers must integrate these principles and practices into their daily activities, operational teams and leadership style. Strategy 2.3: Conduct Promotion Interviews with a Diverse Panel of Management Internal and external promotions for vacancies in managerial positions will be conducted by a diverse group of executives who are representative of the company’s demographics. The goal is to eliminate implicit bias by interviewing candidates with a diverse committee. GOAL #3: CREATE AN INCLUSIVE WORK ENVIRONMENT BASED ON MUTUAL ACCEPTANCE Strategy 3.1: Strict Enforcement of Anti-Harassment Policies and Reporting Mechanisms Harvest has created strict anti-harassment policies. No employee will be allowed to discriminate based on race, gender, age, religion, national origin, sexual orientation or disability. Employees will be required to report any discrimination or harassment to their supervisor. Mechanisms have also been established to enable reports of any discrimination or harassment to be made anonymously. Reports of discrimination and harassment on these bases will be promptly investigated and, if supported by investigative findings, will be grounds for immediate termination. Strategy 3.2: Investigate and Address Systemic Barriers to Entry and Success Employment Diversity Advisor will actively investigate systemic barriers that may exist in the company and the industry and seek solutions from employees, community members and outside experts. Systemic barriers and ways to overcome them will be explored on at least an annual basis and more often if desired by the Employment Diversity Advisor. Each year, Harvest must implement at least one (1) of the Employment Diversity Advisor recommendations for addressing systemic barriers to entry and success in the legal cannabis industry. The goal is to ensure disadvantaged and underrepresented populations have equal opportunities within Harvest and in California’s legal cannabis industry. GOAL #4: INCLUSIVITY 27 Harvest believes in creating a robust policy of inclusivity in the workforce. Harvest desires that persons who might be expected to be excluded from or marginalized in the legal cannabis industry will look at the work force and culture of Harvest and feel a sense of hope, opportunity and empowerment, not to be limited to the cannabis industry alone. This can only be accomplished by intentionally recruiting a high-quality workforce that is representative not only of the diverse population of SLO and California but also of the communities that experienced the ills of the war on drugs most acutely. The latter includes but is not limited to people of color, immigrants from countries ravaged by drug-related violence and persons convicted of non-violent drug offenses. Harvest has developed three 3) operational strategies to recruit minority persons and veterans for employment, two (2) of which involve building strategic partnerships to achieve those goals. Strategy 4.1: Actively Target Impacted Communities for Recruitment Harvest will identify various neighborhoods in its vicinity where the residents are primarily people of color and immigrants from countries impacted by drug-related violence. We will also identify community groups that help recently incarcerated people reintegrate into society and find employment. Harvest will actively advertise opportunities of employment in these neighborhoods and community groups and will seek to fill open positions with applicants from the target communities before expanding the search radius. We also plan to hold a job fair that will offer a fast-track to the interview stage for people of color, immigrants, LGBTQ individuals, drug war victims and people from other target communities. Strategy 4.2: Form Alliances with Historically Black Colleges and Universities (HBCU) and Hispanic Serving Institutions (HSI) to Recruit Recent College Graduates Harvest has plans to meet with several HBCUs and HSIs to discuss the formation of strategic partnerships. The strategic partnerships formed will create a pipeline to work after college for minority students who excel at business management, food science, industrial engineering, microbiology and laboratory sciences. Harvest will also meet with diversity groups at the nearby Cal Poly to provide similar networking opportunities for those local graduates. Strategy 4.3: Partner with Veteran Service Organizations to Host Career Fairs for Veterans and Military Families Harvest will forge partnerships with veterans’ organizations to host multiple career fairs with these groups. These co-hosted career fairs will allow veterans to translate their unique skillset serving our country – into a new journey serving California’s cannabis industry. COMPASSIONATE SERVICES AND PRODUCT DISCOUNTS Harvest has developed a robust community discount program to serve those in need and honor those who have sacrificed for our country and community. 28 HEALING OUR HEROES Harvest will offer a twenty percent (20%) discount to all veterans and military families, as permitted by applicable state and local rules. This program will be called Healing Our Heroes. As part of this program, Harvest will help customers understand the potential benefits and effects of using cannabis to treat wounds of war like Post-Traumatic Stress Disorder and Chronic Traumatic Encephalopathy. At Harvest we believe we have a sacred duty to honor our veterans with care that reflects their service, sacrifice and bravery. Moreover, veterans across the country have testified that medical cannabis has provided relief for their Post-Traumatic Stress Disorder. The American Legion, with its nearly 2.5 million members, is currently advocating for more access to medical cannabis for veterans. In a May 2017 article in Politico, Louis Celli, the National Director of Veterans Affairs and Rehabilitation for the American Legion stated, "there is overwhelming evidence that it has been beneficial for some vets.” From the Civil War to the War on Terror, California has a unique heritage for honoring our nation’s heroes. However, more must be done for our veterans because nearly one (1) out of eight (8) service members suffer from Post-Traumatic Stress Disorder. To promote Healing Our Heroes and support California veterans, Harvest will advertise this initiative with local chapters of the American Legion and Veterans of Foreign Wars and other active veteran service organizations, including SLO Veterans Services Collaborative. By providing a twenty percent (20%) discount to eligible veterans, as permitted by applicable state and local rules, Harvest will continually demonstrate our commitment to our nation’s heroes and honor their sacrifices. HARVEST CARES Harvest will implement the Harvest Cares initiative offering a twenty percent (20%) discount to low income medical patients, as permitted by applicable state and local rules. To qualify for the Harvest Cares program, patients will be asked to show proof of eligibility in either CalFresh, Medi-Cal or another comparable qualified assistance program. Harvest believes no family should be denied access to medicine simply because they cannot afford it. When they walk through our doors, qualified patients will receive compassion, empathy and access to care regardless of their background. Medical cannabis may offer legitimate relief for a variety of ailments; however, care can be expensive because it falls outside the traditional healthcare system. Harvest aims to help fill that void through Harvest Cares. COMMUNITY SERVICE DISCOUNT In order to encourage Harvest consumers to give back to their local SLO community, Harvest will implement a Community Service Discount initiative, which to the extent permitted by all applicable state and local laws, regulations, ordinance and guidelines, will offer a range of 29 discounts to patients and consumers who regularly volunteer at local charitable organizations. Harvest will create a simple form that customers and patients may pick up from the facility to track their volunteer time and include a place for the charitable organization’s supervisor to confirm any completed volunteer hours. Harvest will never give away cannabis or cannabis goods for free, unless specifically permitted by all applicable state and local laws, regulations, ordinances and guidelines . For purposes of the discount, Harvest consumers are not required to complete all their volunteer hours at one charitable organization. In fact, Harvest encourages consumers to divide the hours over numerous identified organizations. PROPOSED LOCATION SUITABILITY AND NEIGHBORHOOD COMPATIBILITY 8 Harvest intends to convert a currently underutilized lot into a stand-alone, state-of-the-art facility for the citizens of SLO. Located at 309 Higuera Street, this site is zoned Service Commercial (C-S),9 and is nestled amongst numerous other commercial retail locations and office buildings. Our investment will turn an older building in the center of a robust commercial area into a stylish and modern facility, thereby increasing economic activity at a previously underutilized site. The location is explicitly within the borders of the Mid-Higuera Overlay Area.10 It is more than one thousand (1000) feet from any preschool, elementary school, junior high school, high school, public park or playground, more than six hundred 600) feet from any licensed day care center, and more than three hundred (300) feet from any residentially zoned area.11 The site is directly accessible from Higuera Street, an arterial road.12 The area can accessibly accommodate all parking needed for employees and customers. (See attached Sample Renderings of Proposed Exterior Improvements on page 55.) 8 CSLOMC § 17.99.050 (D)(4). 9 CSLOMC § 17.99.050 (J)(1); CSLOMC § 17.99.050 (K)(1). 10 CSLOMC § 17.99.050 (E)(2). 11 CSLOMC § 17.99.050 (J)(2)(3). 12 CSLOMC § 17.99.050 (J)(2). 30 Harvest strives to operate in 100% compliance with all applicable laws and regulations at all times. As such, no cannabis will be visible from outside the facility,13 and no persons under the age of twenty-one (21) will be allowed on the premises, even in accompanied by parent or guardian.14 Each entrance will have a sign posted prohibiting persons under the age of twenty-one (21) from entering.15 The sign will read: “ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID PHOTO ID IS REQUIRED,” with each letter being two inches high and clearly visible.16 Individuals will be granted access to the retail area only after their age and identity have been confirmed by acceptable forms of identification. Both Harvest’s Commercial Cannabis Operator Permit from SLO and our state Cannabis Retailer license will be posted and visible to the public at all times, once received.17 The store will operate only between the hours of 9:00 am and 8:00 pm,18 with deliveries only between 6:00 am and 10:00 pm,19 unless other timeframes are established by the city or the state. Harvest will not permit the consumption of cannabis or cannabis products, whether by smoking, vaping, inhaling, eating, drinking or any other means, in, on or about the premises. Absolutely no on-site cannabis consumption will be permitted. No cannabis will be dispersed throughout the premises by an oil diffuser or any other vaporizing device. 13 CSLOMC § 17.99.050 (E)(4) 14 CSLOMC § 9.10.230 (A-B) 15 CSLOMC § 17.99.050(D)(3)(f); 17.99.050(J)(2)(6) 16 CSLOMC § 9.10.230 (B) 17 CSLOMC § 9.10.060 (A) 18 CSLOMC § 17.99.050(J)(2)(5) 19 CSLOMC § 17.99.050(K)(2) An example of the design aesthetic for the interior lobby of the SLO facility. 31 Harvest will not dispense, serve, store, give away, consume, or cause or permit the sale, dispensing, serving, giving away or consumption of alcoholic beverages or tobacco in or on the premises.20 Likewise, Harvest will always make sales of cannabis, cannabis products and cannabis accessories by way of vendor/employee assistance, and never through the use of a cannabis vending machine or self-service display. Harvest will not keep any such machines on the premises. No sales will occur through a pass-out window, slide-out tray or drive-through window to the exterior of the premises, and no sales will occur by any means or method to any person within a motor vehicle. Harvest will only ever sell cannabis or cannabis goods which (1) were received from a licensed distributor or microbusiness; (2) have met all required testing and packaging requirements; (3) are not past their best-by date; and (4) are properly packaged for sale. All purchases will be placed in opaque exit packaging, and will not exceed the daily limits outlined by the BCC. When not in operation, the facility will be securely locked with commercial-grade, nonresidential door locks. An active alarm system will monitor the interior and exterior of the grounds and only store employees or other authorized individuals will be allowed access. LOCATION ACCESSIBILITY Our proposed location at 309 Higuera Street was selected, in part, due to its accessibility for SLO residents. The proposed site can easily accommodate the required number of parking spaces along Walker Street and provides safe and convenient access for customers and employees alike. It is a short, three (3) minute walk to the Pismo at Archer bus stop, so even 20 CSLOMC § 9.10.220. Example of a fully constructed Harvest retail area. Example of a fully constructed Harvest retail area. 32 those without personal vehicles can utilize public transportation to access our facility. Bicycle racks will be installed for those who wish to use their own energy for transport. For those with mobility issues, our delivery service will allow an even greater range of access. Further discussion of Harvest’s delivery services can be found in our Business Operations Plan. COMMUNITY RELATIONS PLAN 21 Harvest has developed a comprehensive Community Relations Plan to minimize any potential neighborhood compatibility issues and quickly address any issues that do arise. This plan describes specific strategies and equipment that will be used to mitigate any potential negative impacts or nuisances, including enforceable assurances that no odor will be detected from outside of the facility,22 as well as steps to take if and when complaints arise. Harvest’s Director of Community Outreach, Jason Kallen, is critical in this effort. Mr. Kallen and the entire Harvest team will work closely with community members, neighborhood leaders and local businesses to document and address any concern. Harvest will operate its facility in a manner as to prevent noise, dust, vibration, glare, fumes or odors from being detectable beyond the boundaries of the property on which the facility is operated. No cannabis will be visible from outside the facility.23 Because of our operational history, we have a unique expertise to mitigate common neighborhood concerns and do not anticipate any issues arising from our operations. COMMUNITY POINT OF CONTACT: DIRECTOR OF COMMUNITY OUTREACH Harvest’s Director of Community Outreach, Jason Kallen, is the community’s go-to point of contact for any questions, concerns or comments for our proposed SLO operation. Due to extensive planning and community outreach, we do not anticipate any concerns or complaints regarding our operations. Still, company policies require that any staff member receiving a complaint or concern must report it to Mr. Kallen immediately so that such issues may promptly be addressed. All necessary actions will be taken to resolve a complaint and all records of complaints will be kept on-site. Harvest is committed to developing and strengthening our ties to the neighborhood and to ensuring that our neighbors thrive along with us. We look forward to continuing to develop a synergistic relationship between Harvest and the SLO community. 21 CSLOMC § 17.99.050(D)(4). 22 CSLOMC § 17.99.050(E)(3). 23 CSLOMC § 17.99.050(E)(4). 33 COMMUNICATING WITH HARVEST Harvest will use multiple communication tools to engage the residents of SLO and address any concerns they may have. Each communication platform will be consistently staffed to respond to inquiries. Communication platforms may include: 24-Hour Telephone Hotline Number; Active Social Media Accounts; and Regularly Monitored Email and Website Contact Form. Harvest encourages all community members, neighbors, businesses and clientele to reach out immediately to our Director of Community Outreach Jason Kallen should there be an issue with our operations. Mr. Kallen may be contacted with comments, concerns, complaints or questions at any time, including during or after normal business hours. Harvest will continue to listen, share knowledge and create an understanding of our services, objectives and planned outcomes with all interested parties. Harvest will frequently meet with public officials, the community and stakeholders so that we may hear about any issues or concerns related to the facility, our operations and our presence in the SLO community. Harvest is committed to maintaining positive relationships with the neighborhood. Our overall goal is to build a transparent relationship with the city and surrounding businesses to ensure that all feel comfortable and secure with Harvest’s retail operation. One of the primary responsibilities of Mr. Kallen as Director of Community Outreach will be to field community questions and concerns. In addition to the communication platforms listed above, Harvest intends to maintain a regularly-updated website where consumers and community members can receive current relevant information about our operations and company values. Harvest will also have a frequently asked questions (“FAQs”) page to address common questions about the cannabis industry and our SLO retail operation. Harvest intends to continue to listen, share knowledge, and create an understanding of our services, objectives and planned outcomes with all interested parties. Harvest will frequently meet with public officials, the community, and stakeholders so that we may hear about any issues or concerns related to the facility, our operations, and our presence in the SLO community. PUBLIC OUTREACH Harvest will also host at least two public outreach meetings per year. The Director of Community Outreach will coordinate these public outreach sessions and listening sessions by scheduling semi-annual gatherings to listen to the community and its feedback on the retail facility and operation. If necessary, Mr. Kallen will establish an action plan and a reporting arrangement to ensure the community is informed about facility related developments. Our goal is to foster an inclusive environment where neighbors feel safe asking questions about our operations and philanthropy. Neighborhood associations, local 34 businesses, residents, area nonprofits, law enforcement and local businesses will be invited to participate. It is important to hear the community’s voice and ensure their needs are incorporated into our mission. ELIMINATION OF CANNABIS ODOR AND OLFACTORY STIMULUS Harvest has developed an odor mitigation plan to ensure that our facility serves as an environmental steward of the community and does not create a nuisance. Through the facility design process, our company can identify all potential sources of olfactory emissions and proactively design, construct and operate a facility that follows industry best practices for odor mitigation. Our company’s activities will not create offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity in the area. Please see our Odor Control Plan for additional information. REDUCING COMMON VISUAL OBSERVATION Harvest is committed to ensuring that its facility adds value to the SLO community and does not pose a nuisance to its surrounding neighbors. Cannabis operations will be concealed from public view at all times and there will be no evidence of cannabis or cannabis products visible from outside the facility.24 Harvest will address any deferred maintenance issues associated with the site, including but not limited to: Replacement of dead or deficient landscaping; Constructing a state-of-the-art building; Repaving and restriping of parking lot area; Installation or replacement of damaged fencing; Removal or replacement of uplifted sidewalks; and Removal of any trash or debris. The facility will be designed to complement the general character and aesthetics of the surrounding area. No pictures, photographs, drawings or other depictions of cannabis will appear on the outside of Harvest’s permitted premises nor will any such images be visible from the outside of the premises. Harvest will ensure that trees, bushes and other foliage outside of the premises do not allow people to conceal themselves from sight. 24 CSLOMC § 17.99.050 (E)(4) 35 DAILY INSPECTIONS Company management will complete a daily inspection to ensure the interior and exterior of the facility is properly maintained. Harvest will ensure that that the facility premises and associated parking, including the adjacent area under the control of Harvest and any sidewalk or alley, will be maintained in an attractive condition and will be kept free of obstruction, trash, litter and debris at all times. Adequate illumination of the exterior of the building in the evening, along with visible exterior security cameras, will deter vandalism of any kind. MINIMAL SIGNAGE Harvest is committed to ensuring that its signs and exterior storefront add value to SLO while respecting the historic and vibrant culture of the community. All exterior signs will be designed to complement the general design, character and aesthetics of the neighborhood, and will comply with all SLO regulations for size, area and type of sign.25 Out of respect for SLO residents and neighboring businesses, Harvest’s signs will be minimal and modern. No internal illumination of signs will be used.26 They will only display the company’s name and address to assist customers in locating the business. To ensure there is no exterior evidence of cannabis retail activities, external signage will not: Promote the use of cannabis and cannabis products; Be appealing to minors; Include prices of cannabis and cannabis products; or Advertise the availability of cannabis. External signage will conform to and comply with the ordinances and rules set forth by SLO and all applicable state and local laws, regulations, ordinances and other requirements regulating signs and advertising. Internal signage will not be displayed on the interior of the facility in such a way as to be visible from the exterior. MITIGATING LIGHT POLLUTION Harvest will be respectful of the night sky and our neighbors. We understand the natural beauty of SLO, with its Mediterranean climate and central location between the Coast Range and Pacific, draws many to the area and that minimizing light pollution is central to maintaining that natural appeal. As such, minimal lighting level of one foot-candle will be utilized at building entrances and in parking lot areas. All exterior lighting will be fully shielded, downward casting and not spill over onto structures, other properties or the night sky. 25 CSLOMC §17.99.050(D)(3) 26 CSLOMC § 17.99.050(D)(3) 36 Exterior lighting on the premises will be balanced to complement the security and surveillance systems to ensure all areas of the premises are visible. Exterior lights will be utilized from dusk till dawn with increased lighting at all entrances to the premises. Harvest will not utilize any type of active outdoor facility lighting that would create light pollution issues. Should facility lighting give rise to a complaint, Harvest will work to develop a compliant lighting solution that addresses community impact considerations without sacrificing facility security. ENHANCING SECURITY AND PREVENTING DIVERSION Harvest has comprehensive security protocols in place to minimize any risk of security threat or diversion. To support us in maintaining a secure facility, we have engaged with numerous high-quality security professionals to provide security consulting as we develop our procedures, as well as on-site security services at our facility once it is operational. As required, the facility will be patrolled by a Security Guard, prohibiting individuals from remaining on Harvest’s premises if they are not or will not be actively engaging in the purchase of cannabis goods or any other activity expressly related to the operations of Harvest. RESPONSIBLE ADVERTISING As part of Harvest’s efforts to prevent diversion and the under-age consumption of cannabis, great care will be taken to ensure all advertising is appropriately targeted to adult audiences. Harvest will always ensure its advertising, whether in broadcast, cable, radio, print or digital communication, will only be displayed after we have obtained reliable, up-to-date audience composition data demonstrating that at least seventy-one point six percent (71.6%) of the audience is reasonably expected to be twenty-one (21) or older. Harvest will retain audience composition data in order to provide such information immediately upon request to the BCC, and will remove the advertising or marketing in question if the BCC determines the data does not comply with the requirements. Sample advertisement for a Harvest-sponsored community group. 37 No Harvest ads will utilize any depictions of minors or persons under the age of twenty-one 21), nor will they utilize any display, depiction or image designed in any manner to be appealing to minors or anyone under the age of twenty-one (21). No free cannabis goods or giveaways will be permitted or advertised. If Harvest utilizes any outdoor signs in our advertising plan, the signs will always be affixed to a building or other permanent structure, comply with all SLO signage rules and the Outdoor Advertising Act, and will not be located within a fifteen (15) mile radius of the California border on an Interstate Highway or a State Highway which crosses the California border. If direct, individualized advertising communications are sent, Harvest will use age affirmation to verify the recipient is twenty- one (21) or older and will likewise confirm the age of any potential customer who wishes to be added to Harvest’s mailing list. RESPONSIBLE MESSAGING ON PACKAGING Harvest believes that responsible messaging on packaging is crucial to preventing under- age consumption of cannabis as well as reducing stigma for the medical cannabis community. As a retailer, Harvest will not package or label cannabis goods, and will not accept any deliveries of cannabis goods that are not packaged for final sale. We will always verify that all legal packaging requirements have been met. Responsible messaging is important, and Harvest will always ensure our exit packaging, advertising, and outreach efforts underscore that message. Our messaging emphasizes education, clear and accurate labeling, medical use as appropriate, and an avoidance of recreational terminology (e.g., weed, stoned, etc.) and imagery (cannabis leaves, green crosses, etc.). We have developed several style guides to ensure consistent and accurate messaging, dictating the colors, fonts, imagery, typography, backgrounds, and textures that may be used. Our trade name, Harvest, does not contain wording commonly associated with marketing targeted toward children or that promotes recreational cannabis use. When selecting cannabis goods to stock our shelves, we strive to partner with other companies that share our ethos on this matter. To the left is a sample of the kind of minimalistic and responsible packaging with which Harvest will strive to fill our inventory in SLO. CONCLUSION Harvest defines our success by the positive impact we make in the lives of our clients, our communities and our employees. We are not truly successful unless we are able to improve the communities in which we operate. We hope you will find this Community Benefits Plan enlightening and reflective of our commitment to the people of SLO, California. 38 Learn how. Keep your child safe. In partnership with the Centers for Disease Control and Prevention (CDC) 42 Know the facts. Approximately 60,000 young children are brought to the emergency room each year because they got into medicines that were left within reach. Families take medicines and vitamins to feel well or stay well. Any medicine or vitamin can be dangerous if taken in the wrong way or by the wrong person, even medicine you buy without a prescription (known as over-the-counter medicine). All medicines and vitamins should always be kept up and away and out of your child’s reach and sight. 2 | Up and away and out of sight 43 www.UpandAway.org | 3 44 Protect your child. Here’s how. Put medicines and vitamins up and away— out of reach and out of sight. Children are curious and put all sorts of things in their mouths. Even if you turn your back for less than a minute, they can quickly get into things that could hurt them. Pick a place your children cannot reach Find a place in your home that is too high for children to reach or see. Different families will have different places. Walk around your home and find the best place to store yourmedicines and vitamins up and away. Put medicines and vitamins away after each use Always put every medicine and vitamin away every time you use it. This includes medicines and vitamins you use every day. Never leave them out on a kitchen counter or at a sick child’s bedside, even if you have to give the medicine again in a few hours. 4 | Up and away and out of sight 45 Hear the click to make sure the safety cap is locked Always relock the safety cap on a medicine bottle. If the medicine has a locking cap that turns, twist it until you hear the “click” or until you can’t twist anymore. Remember, even though many medicines and vitamins have safety caps, children may be able to open them. www.UpandAway.org | 5 46 Teach your children about medicine safety Tell your children what medicine is and why you must be the one to give it to them. Never tell children medicine is candy to get them to take it, even if your child does not like to take his or her medicine. Tell guests about medicine safety Remind guests to keep purses, bags, or coats that have medicines in them up and away and out of sight when they’re in your home. 47 Be prepared in case of an emergency. www.UpandAway.org | 7 Keep the Poison Help number in all of your phones: 800) 222-1222 Or text “POISON” TO 797979 to automatically save it. Call right away if you think your child might have gotten into a medicine or vitamin. 48 Up and Away and Out of Sight is an educational program to remind families of the importance of safe medicine storage. It is part of the PROTECT Initiative, in partnership with the Centers for Disease Control and Prevention (CDC). In partnership with the Centers for Disease Control and Prevention (CDC) When accidents happen or if you have questions, call Poison Help at 800) 222-1222 Keep this number in all of your phones, or text “POISON” TO 797979 to automatically save it. www.UpandAway.org 49 Harvest of Tucson is on track to open its doors to the public on January __th, with our Grand Opening celebration taking place January 12th from 11:00 AM to 3:00 PM! In addition to huge sales and specials, appearances by Arizona medical cannabis vendors, live music, and Bella’s Gelato. Dr. Troutt will also host his New Patient Orientation at 10:00 AM on the 12th. If you have a friend or family member in Tucson who is considering medical cannabis as a health choice, Dr. Troutt’s educational session is the best resource around for them to learn about cannabis dosing, its eff ects, and realistic expectations. No medical cannabis card is needed to attend, so all are welcome! We’re beyond excited to fi nally show southern Arizona what Harvest is all about! Winter - 2017 - GRANDOPENINGTUCSON ONLINE NEWSLETTER ONLINE ORDERING For patients who manage their health alongside a busy schedule, Harvest has great news for you; we are now off ering online and phone orders at all Harvest locations! To place an express order, simply visit: harvestofaz.com/online-orders Sign up at the link near the top of the page, and choose the items you’d like to purchase. Additionally, patients can call the main number for any Harvest location to place an order by phone. All orders will be ready in ten minutes or less! 50 After our application was considered, Harvest was recently granted a cultivation license in the state of Ohio! The license permits Harvest to initially operate up to 25,000 square feet of medical cannabis cultivation space. We were one of 12 companies recently chosen from an applicant pool of 109, and we were also the only company with two winning applications. See the winners of each category at: https://azmarijuana.com/best-of-2017 Did you forget to stop by the ATM before visiting Harvest? We’ve got you covered, as select Harvest locations are now accepting Hypur as a method of payment! Hypur allows you to make your dispensary purchase directly from your bank account through their phone app, with no debit or credit card required. Tempe and Scottsdale are now accepting Hypur as a method of payment, and we hope to have it set up at all of our other locations soon. 2017 has been the most consequential year in Harvest’s history so far, and your enduring support has enhanced our passion and ability to serve medical cannabis patients. As our mission expands to new endeavors in new regions, we hope to carry yourencouragementforwardandcontinuemakingadifference. Visit HarvestofAZ.com/calendar to view all our events / Follow us on Social Media! Visit harvestofaz.com/survey to let us know your thoughts. Ohio Announcement Harvest was founded with one mission: to improve people’s lives. We accomplish this mission by empowering patients to take control of their health and well-being, and one way we facilitate that process is by growing high-quality, standardized medicine,” said our CEO Steve White. Being awarded the provisional license in Ohio further validates our model and approach that we’ve been relentlessly bringing to markets since 2013 and making medical cannabis more accessible to patients who need it.” Here’s to your health, and to the future! We want to thank all of our enthusiastic patients who recently voted Harvest Dispensaries as the Best in Arizona in AZMarijuana’s Best of 2017 polls! 51 JANITORIAL Auburn Grass Valley San Luis Obispo 1127 Grass Valley Hwy. 791 Maltman Dr. 3621 Sacramento Dr. Ste B Auburn, CA 95603 Grass Valley, CA 95945 San Luis Obispo, CA 93401 530.823.8737 530.273.2283 805.544.5350 FURNITURE • OFFICE SUPPLIES January 25, 2019 Harvest ofSLO LLC c/o Steve White Owner 3469 Empresa Drive 93401 San Luis Obispo, CA Dear Mr. White; I am writing today on behalf of Walker's Office Supplies regarding our recent discussion about contracting with your company to provide office supplies at your proposed retail cannabis facility in San Luis Obispo.After our conversation, I understand your company Harvest's commitment to not only acting as a reputable retailer in the cannabis space, but to also being an active and engaged participant in our local San Luis Obispo economy and business community. In utilizing local vendors such as Walker's, you will be supporting your neighbors and the local economy as you build your business. As a recognized purveyor in the San Luis Obispo region, we feel confident we can work with your company to not only fulfill all of your office supply needs for your new facility, but also help our community thrive. We appreciate the opportunity to conduct business with you and Harvest, and look forward to working with you once your license is received. Sincerely, Jarrod Anderson Owner, Walker's Office Supplies 3621 Sacramento Drive San Luis Obispo, CA 93401 52 53 54 56 Attestation of Income I, Courtney Guluarte, am of sound mind and otherwise competent to make this attestation. I do hereby swear, certify and affirm: I, Courtney Guluarte, certify under penalty of perjury, that I reside in a household of four (4) adults and am the primary earner for myself. I, Courtney Guluarte, also certify under penalty of perjury, that between the years of 2015 and 2017, my income was less than fifteen thousand dollars ($15,000) a year. I, Courtney Guluarte, also certify under penalty of perjury, that all of my income for 2018 is under approximately thirteen thousand dollars ($13,000). I, Courtney Guluarte, also certify under penalty of perjury, that at the time of submission of the Commercial Cannabis Business Operators Permit Application for the City of San Luis Obispo, my median household income is below fifty-nine thousand, six hundred and twenty-eight dollar 59,628). I declare under the penalty of perjury, under the laws of the State of California, that what I stated above is true and correct. Signature: Date: January 26, 2019 Name: Courtney Guluarte 57 58 1/22/2019 Sales Associate with Retail Skills Salary in San Luis Obispo, California | PayScale https://www.payscale.com/research/US/Job=Sales_Associate/Hourly_Rate/76d1e387/San-Luis-Obispo-CA-Retail 1/7 Jobs Companies Degrees United States /Job /Sales Associate Sales Associate with Retail Skills Hourly Pay in San Luis Obispo, California 12.00 Avg. Hourly Rate Help us gather more data! Is Sales Associate your job title? Find out what you're worth.Get pay report The average pay for a Sales Associate with Retail skills in San Luis Obispo, California is $12.00 per hour. 10%50%90% MEDIAN $12.00 Personalized Salary Report » 9.75 $12.00 $14.00 City Skill Job Hello! I can help you find out what you should be paid. What brings you to PayScale? Get current salary info Evaluate a job offer Menu 59 1/27/2019 Retail Store Assistant Manager Salary in San Luis Obispo, California | PayScale https://www.payscale.com/research/US/Job=Retail_Store_Assistant_Manager/Salary/9ae2d42a/San-Luis-Obispo-CA 1/7 Jobs Companies Degrees United States /Job /Retail Store Assistant Manager Average Retail Store Assistant Manager Hourly Pay in San Luis Obispo, California 45,500 Avg. Salary Help us gather more data! Is Retail Store Assistant Manager your job title? Find out what you're worth.Get pay report The average pay for a Retail Store Assistant Manager in San Luis Obispo, California is $45,500 per year. 10%50%90% MEDIAN $45,500 Is Retail Store Assistant Manager your job title? Get a personalized salary report! Location: Denver, Colorado Years in Field/Career: Get your salary report » United States (change) Personalized Salary Report » 0 $46k $0 City Job Menu 60 1/22/2019 Experienced Retail Store Manager Salary in San Luis Obispo, California | PayScale https://www.payscale.com/research/US/Job=Retail_Store_Manager/Salary/2d2abf81/Experienced-San-Luis-Obispo-CA 1/7 Jobs Companies Degrees United States /Job /Retail Store Manager Average Experienced Retail Store Manager Hourly Pay in San Luis Obispo, California 45,781 Avg. Salary Help us gather more data! Is Retail Store Manager your job title? Find out what you're worth.Get pay report The average pay for a Retail Store Manager in San Luis Obispo, California is $45,781 per year. 10%50%90% MEDIAN $45,781 Personalized Salary Report » 0 $46k $0 City Job Hello! I can help you find out what you should be paid. What brings you to PayScale? Get current salary info Evaluate a job offer Menu 61 Education Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC TABLE OF CONTENTS Harvest: Always Learning................................................................................................... 3 Educating and Empowering the Community ..................................................................... 3 Monthly Education Classes ............................................................................................ 3 Community and Youth Drug Prevention ........................................................................ 6 Community Education and Information .......................................................................... 8 A Description of all Employee Training Programs ............................................................. 8 Employee Handbook ...................................................................................................... 9 Train the Trainer ............................................................................................................. 9 Third-Party Training ........................................................................................................ 9 Monthly Department Meetings ....................................................................................... 9 New Employee Orientation and Training ....................................................................... 9 General Training ........................................................................................................... 10 Security Training ........................................................................................................... 11 Emergency and Incident Response Training ............................................................... 11 Workplace Safety Training ........................................................................................... 12 Hazard Communication Training .................................................................................. 12 Quality Assurance Training .......................................................................................... 13 Retail Training ............................................................................................................... 13 Continuing Education .................................................................................................... 14 Training Records ........................................................................................................... 14 Evaluation of Training Content ..................................................................................... 15 Americans for Safe Access Patient Focused Certification .......................................... 16 Conclusion ........................................................................................................................ 16 1 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC Description of Criteria Page # Section 4: Messaging 4.1) Applicant commits to responsible use messaging practices 3, 5, 6 4.2) Business articulates strategy to keep cannabis from being diverted to minors including advertising that is appropriately targeted to adult audiences. 6, 7 4.3) Business promotes responsible use including messaging on packaging, offering lower dose THC product options, offering to track use via “user determined quotas,” posing information on cannabis use disorder and cautions re: development of the adolescent brain 5, 6, 7 Section 5: Medical Retail Commitment 5.1) Applicant commits to provide retail medical cannabis products to consumers 3 2 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC HARVEST: ALWAYS L EARNING As an operator of both medical cannabis and retail cannabis operations in states across the country, Harvest of San Luis Obispo LLC (“Harvest”) has had the unique opportunity to learn from and serve a wide variety of stakeholders across the industry. From complete newcomers to those who depend on cannabis for daily maintenance and quality of life, the constant developments in this rapidly expanding industry can be overwhelming for anyone. We at Harvest pride ourselves on our commitment to learning and staying on the forefront of cannabis developments and research in order to best serve the needs of our patrons. Perhaps even more substantial is our commitment to education and sharing this vital information with our staff, our customers and our community, so all can make the most informed decisions about cannabis and make healthy and productive decisions for their best life. Harvest will always use responsible use messaging practices in our outreach and education, and will always keep public health, welfare and safety as a top priority. EDUCATING AND EMPOWE RING THE COMMUNITY We believe education equals empowerment. As such, Harvest will take a proactive approach to educating the City of San Luis Obispo (“SLO”) about our business and the services we provide. Public education seminars will cover a wide range of topics, from the benefits of medical cannabis to the legal ramifications of unlawful use. As both an adult -use and medial cannabis facility, our duty is amplified to ensure customers and patients alike are provided the most up-to-date information available. Harvest will guide participants through a comprehensive healthcare experience. We hope to provide a holistic understanding of healthcare for our patients and neighbors in the community. Harvest has developed strategic goals for our community education programs including: Educating California patients and the general public about the benefits of cannabis; Fostering an inclusive environment where neighbors feel safe asking questions about our operations and philanthropy; Offering resources to vulnerable families; Developing relationships with neighborhood leaders and elected officials; Working with law enforcement to increase awareness of the consequences of illegal use of cannabis; and Promoting a holistic healthcare experience. MONTHLY EDUCATION CL ASSES Monthly education classes will be held for both qualified and registered patients and adult consumers to cover a variety of topics, including California and SLO commercial cannabis 3 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC rules and regulations, methods of consumption, dosage and serving size suggestions, cooking, and general information on safe and responsible use. As the need for various educational classes arises, Harvest will adjust the monthly class schedule to best serve the greater needs of the patient and consumer base. Many of the seminars will be hosted by Dr. William D. Troutt, Harvest’s Director of Cannabis Education. Dr. Troutt has hosted workshops for patients across the country and specializes in cannabis-based medicine and treatment. He was the first Medical Director of a state - licensed dispensary in Arizona, and currently serves as the Senior Medical Advisor for all seven (7) sister Harvest dispensaries in Arizona and one (1) in California. Dr. Troutt’s knowledge and experience with medical cannabis extends to a wide variety of topics, including its use for controlling seizure disorders. He has presented on the therapeutic effects of cannabis at many venues including an Adult Epilepsy Conference, support groups at Banner Hospital and Mayo Clinic, and the Harvesting Hope pediatric epilepsy empowerment group. Dr. Troutt has also conducted primary research on the therapeutic effects of cannabis, publishing two academic studies focused on safe and efficacious cannabis use. Dr. Troutt will not make any individual recommendations for medical or medicinal cannabis as part of his involvement with Harvest.1 Local officials, including those from surrounding communities, will be invited to participate in these public education seminars. Elected officials play an important role in the healthcare of their constituents. Moreover, their voice is needed as new laws regulating cannabis are implemented. Harvest hopes to empower our elected officials with the requisite knowledge about this unique new medicine. Some educational sessions will be open to the public and will include talks by local and national experts regarding general health, diet, exercise, stress management, and other important holistic and self-care wellness-related topics. These sessions will be held at the dispensary facility premises. Sessions specifically focused on cannabis consumption, such as how concentrates differ from flower and how to properly administer medical cannabis, will be limited to verified adult customers and patients. Absolutely no cannabis will be consumed at the facility by employees or clientele either during these sessions or at any other time. All sessions will take place during operating hours. Our goal is to foster an inclusive environment where neighbors feel safe asking questions about our operations, products and philanthropy. Neighborhood associations, area non - profits and local businesses will be invited to participate. It is important to hear the community’s voice and ensure that community members’ needs are incorporated into our company’s mission. 1 City of San Luis Obispo Municipal Code § 9.10.070(C)(5) 4 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC SAFE AND RESPONSIBLE CANNABIS USE Safe and responsible cannabis use will be stressed at each education class, regardless the underlying topic. Attendees will be advised on conservative dosing strategies, variation in onset and duration of effects, potential side effects, contraindications, drug interactions, potential adverse effects, and recognizing cannabis and other substance use disorders. Staff will also inform attendees how metabolism and rate of ingestion due to factors such as age, weight, tolerance, current nutrition levels and other factors that may affect a consumers’ experience. TRACKING AND USER DETERMINED QUOT AS As part of Harvest’s commitment to responsible cannabis use and education, Harvest will promote tracking one’s individual cannabis usage and establishing individualized quotas. Tracking cannabis usage is advisable for all cannabis users in order to monitor how much cannabis is being used or consumed, but is especially important for medical cannabis patients. Tracking one’s purchases and experiences can help provide clarity when determining what product to try in the immense array of cannabis products, and can help determine the ideal strain, administration method, potency, or dosage to best suit one’s individual needs. This information can also be useful for our staff to assist patrons by eliminating products that do not suit that individual’s preferences and needs. Sample cannabis journal for individuals to monitor their cannabis usage. 5 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC By tracking cannabis usage, customers not only can gain information on what cannabis products they most enjoy and that best suit their needs, but can also be aware if their usage begins to continuously increase or become problematic. In establishing user determined quotas, customers can set their own limits on what they want to be able to purchase at any one time or over a set period of time and be notified they are going over that limit, within the bounds of all applicable laws and regulations. This voluntary service encourages customers to set their own boundaries regarding cannabis use, promoting responsible use and helping our patrons be mindful and aware of cannabis and substance use disorders. RESOURCE TABLES Harvest will work to have resource tables for patrons to access services, care and support. Examples of resource tables may include: Cancer Support Groups Cancer has long been qualifying medical condition in various states with a legal medical cannabis landscape. Patients who are struggling with the physiological or mental effects of a cancer diagnosis or chemotherapy treatment may attend our educational seminars. To help support this population, Harvest will provide resources to local support groups such as the Hearst Cancer Resource Center and Cancer Support Community of California Central Coast. Veteran Service Organizations Harvest is committed to serving our nation’s heroes. Several resource tables will be available linking veterans to beneficial programs and services , including PTSD support groups, the VFW, SLO Veterans Services Collaborative and local American Legion chapters. Food Bank Coalition of San Luis Obispo County Families that attend these seminars may be struggling financially because of tragically expensive healthcare and costly prescriptions. Harvest wants these families to have access to the resources offered by the Food Bank Coalition of San Luis Obispo County. COMMUNITY AND YOUTH DRUG PREVENTION Harvest wants the residents , and especially the youth, of SLO to know that the unlawful use of cannabis has severe consequences. Although recreational cannabis is legal in the State of California, there are still current penalties for recreational use by persons under the age of twenty-one and medical use without a recommendation. To raise awareness about the penalties for the unlawful use of cannabis, Harvest would like to partner with the San Luis 6 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC Obispo Police Department and the San Luis Obispo County Sheriff's Department to hold community discussions. It is important that our community works together to denounce and discourage the unlawful use of cannabis in our community. During these community discussions, Harvest will solicit feedback from the community which is essential to understanding the best way to reach our neighbors. There is abundant misinformation about the use of cannabis and the consequences of unlawful use. Harvest will promote these community discussions through traditional media and social media. In order to drive attendance to these important events, Harvest will encourage the San Luis Obispo Police Department and local elected officials to promote the community discussions as well. We hope to hold these community discussions at a SLO library or another publicly permitted location, as permitted by the city, so that students and young people can have access to this vitally important information. Harvest is happily prepared to facilitate and sponsor these discussions. Especially given the proximity of California Polytechnic State University, we at Harvest feel we have a responsibility to the youth in the area to provide meaningful, accurate information about cannabis, including cannabis use disorder and special considerations of cannabis on the development of the adolescent brain. These events will be incredibly productive because social media makes students especially vulnerable to bad information about cannabis and drug use. We believe that students must be empowered with the right information in order to make healthy and productive decisions. SAFE STORAGE Safe cannabis product storage is extremely important to prevent youth access to cannabis products. Staff will instruct customers at our facility and the community during our outreach efforts to follow Center for Disease Control (“CDC”) guidelines on safe medicine storage to prevent access by children and unauthorized individuals, including Storing cannabis products out of children’s reach and sight; Putting cannabis products away after every use; Ensuring packaging is secure; Teaching children and guests about cannabis products’ safety and legality; and Being prepared in case of an emergency (e.g., having the number for poison control readily available). In addition to educational materials, we will freely distribute the Up and Away Brochure, published by the Up and Away and Out of Sight program in conjunction with the CDC. Patrons will also be instructed on best practices for preventing spoilage and contamination by storing the containers in a cool, dry location. See attached Up and Away Brochure on page 17. 7 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC ACCIDENTAL INGESTION Patients and consumers will be instructed on conservative dosing strategies and product variation in the onset and duration of effects to prevent accidental over-ingestion. Educational materials containing this information will also be freely distributed. Patients and consumers will also be educated on proper storage, as described above, to prevent accidental ingestion by children and unauthorized individuals. Educational materials and product labels will prominently display the following warning: “KEEP OUT OF REACH OF CHILDREN.” Should accidental ingestion occur, patients and consumers will be instructed to immediately contact emergency response personnel. COMMUNITY EDUCATION AND INFORMATION Harvest is committed to providing patients and consumers with educational services and programs to enhance understanding of the California commercial cannabis program and the overall benefits associated with it. As we have done in other states, we will continuously stay informed of new legal developments at both the local and state levels and actively provide the most current and accurate information and guidance to the community. At the dispensary and on our website, we will provide educational materials and pamphlets about the effects of cannabis sourced from licensed commercial cannabis testing facilities as well as academic and scientific institutions. We will also provide information about certain cannabinoids, strains, and manufacturing methods and practices. If not prohibited by SLO or other applicable governmental entities, Harvest intends to produce and distribute quarterly newsletters to all customers and interes ted community members, keeping them abreast of Harvest’s involvement in the larger California cannabis community including the opening of new stores, any new seminars, and important updates to state or local cannabis laws. A sample of one such newsletter from a Harvest facility in Arizona is included in this application. See attached newsletter from a Harvest facility on page 25. A DESCRIPTION OF ALL EMPLOYEE TRAINING P ROGRAMS In addition to educating patrons and the surrounding community, Harvest will ensure all of our own employees have the education, training and experience, or any combination thereof, to enable the employee to perform all assigned functions and provide the highest level of care to our customers. Employees will not be allowed to report to work prior to receiving orientation training or when any required critical training is eight (8) weeks or more past due. Training will address the policies, processes, procedures and written instructions related to operational activities, the product, the quality assurance system as well as the desired work culture. Employee training will be tailored to the roles and responsibilities of the job function of each employee. 8 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC EMPLOYEE HANDBOOK All employees will receive an employee handbook prior to reporting to work. The employee handbook will provide in-depth information regarding Harvest policies and procedures. Each director or manager will ensure that each employee in their department has received, read and acknowledged his or her understanding of the material covered in the employee handbook. TRAIN THE TRAINER Harvest will utilize the “train the trainer” method throughout the organization. The benefits for trainer managers include enhanced skills and knowledge, proficiency in materials and knowledge transfer to Harvest employees. The Director of Retail Operations, the Director of Human Resources and each manager must receive a “train the trainer” certification from a certified source, such as the American Management Society or the American Society for Training and Development. Managers will be able to select employees to become department trainers for certain functions (i.e. a dedicated employee to train new employees on a new seed-to-sale system). Managers will be encouraged to utilize these trainers for peer to peer training at monthly department meetings. THIRD -PARTY TRAINING Harvest may utilize vendors or other third -party training programs when determined to be beneficial by the Director of Human Resources and may include training on vendor products and services, employee safety, food safety, good agricultural practice, good management practice and other best practices relating to agriculture and botanical medicine. MONTHLY DEPARTMENT M EETINGS Each department is required to hold monthly department meetings. The manager will create an agenda for each meeting addressing operational issues and reinforcing training priorities. Updates to any training module that do not require a re-training as determined by the Director of Human Resources will be addressed at the monthly department meetings. NEW EMPLOYEE ORIENTA TION AND TRAINING Newly hired employees will be required to complete an orientation before beginning work. Orientation will cover the structure and general functioning of Harvest, which employee positions cover which areas, who supervises whom, communication channels, organizational policies and procedures and all specific rules or regulations the organization or staff might be subject. Employees will receive all applicable training as part of their employee orientation program as well as annually. 9 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC Orientation is a formal welcoming process which is designed to make the new employee feel comfortable, informed about the company and prepared for their position. New employee orientation is conducted by a management representative and includes an overview of the company history, an explanation of the company core values, vision and mission , and company goals and objectives. In addition, the new employee will be given an overview of benefits, tax, and legal issues and complete any necessary paperwork. Employees are presented with all codes, keys and procedures needed to navigate within the workplace. Each new employee’s supervisor then introduces the new hire to staff throughout the company, reviews the job description, explains the company’s evaluation procedures and helps the new employee get started on specific functions. Harvest will ensure that all agents complete training prior to performing job functions. Training will be tailored to the roles and responsibilities of the job function of each emp loyee, and at a minimum will include training on confidentiality and other topics as specified by the Bureau of Cannabis Control (BCC). At a minimum, staff will receive twelve (12) hours of on- going training annually. Training will cover, at a minimum, the following topics: Local, state and federal cannabis laws; Medical cannabis efficacy and recent research; Patient confidentiality, education and care; Personnel, product and premise security; and Record keeping and regulatory responsibilities. GENERAL TRAINING All Harvest employees will be trained in accordance with internal policy as well as in compliance with state and local training and licensing requirements for employees of a licensed cannabis business. The Director of Human Resources will be responsible for ensuring all employees fulfill state and local training requirements, as well as obtaining any necessary licenses or registrations. Training will be performed on an ongoing basis to assure the employee is familiar with industry standards and practices. A written record documenting the completed individual training procedures will be signed by the participants and trainer during each training session. All employees will attend in-house training conducted by qualified individuals in cannabis industry standards, general sanitary practices, and in the specific standard operating procedures (SOPs) that pertain to their assigned work responsibilities. Employees must receive, at a minimum, the following general training: Employee Handbook; California’s Workers’ Compensation system and benefits; HIPAA, ADA, EEOC, and other federal, state and local laws, regulations, ordinances and other requirements related to general business and the cannabis industry; 10 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC The quality assurance duties of each employee related to Harvest operations; Importance of quality assurance procedures and the consequences of failing to follow established processes; First aid training; Recordkeeping; Inventory management system and other IT and communications software and hardware information; and Cannabis efficacy and recent research. SECURITY TRAINING The Safety and Security Compliance Director will ensure employees receive ongoing security training in daily operations. All employees will receive, at a minimum, the follo wing security training: Proper use of security measures and controls that have been adopted by Harvest for the prevention of diversion, theft or loss of cannabis for all of Harvest’s operations; State and local laws, regulations, ordinances and other req uirements regarding the security of the Facility; Procedures and instructions on how to report any suspicious activity, security concerns or other incidents to their supervisor; and Incident response. Security department employees will also be required to complete the following additional training components: Employee and visitor access procedures; Camera monitoring and safety systems; Suspicious behavior and incident identification; Incident management and reporting; and Risk assessment and response. EMERGENCY AND INCIDE NT RESPONSE TRAINING Through extensive emergency and incident response training, all employees will learn: Facility floor plans, evacuation plan maps and preplanned evacuation route; Location of alarms, utility cabinets, fire extinguishers, emergency exits and first aid supplies; How to extinguish a fire using a portable fire extinguisher when needed; Not to re-enter the building or allow others to re-enter in the event of an incident; Proper response procedures for: o IT security breach; o Fire, flood or other natural disaster; 11 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC o Unauthorized entry, robbery, burglary, internal theft or other Facility security breach; and The location of first aid kits. Harvest’s employees are trained to immediately dial “911” for any emergency and cooperate with first responders. Harvest’s employees will also be trained to call the non -emergency number for local law enforcement in the event an employee encounters a non -emergency situation requiring law enforcement assistance. Please see the Security Plan for additional details involving emergency prevention and response. WORKPLACE SAFETY TRA INING All employees will receive, at a minimum, the following workplace safety training: Workplace safety measures adopted by Harvest; Safe handling of equipment; Procedures and instructions for responding to an emergency; and Any training required by California OSHA guidelines. HAZARD COMMUNICATION TRAINING Harvest does not anticipate utilizing any hazardous chemicals at our location in SLO. If hazardous chemicals do become relevant, the Director of Retail Operations or managers will conduct job-specific hazard training for employees who use or handle chemicals. Before employees can start their jobs or will be exposed to new hazardous chemicals, employees will attend a hazard communication training that covers the following topics: An overview of the requirements contained in OSHA’s HAZCOM standard: 29 CFR 1910.1200; Hazardous chemicals present at Harvest; The written hazard communication plan and its location; How to read labels and review Material Safety Data Sheets (MSDSs) to obtain appropriate hazard information; An explanation of any special labeling present in the workplace; Physical hazards and health effects of Harvest’s hazardous chemicals; Methods and observation techniques used to determine the presence or release of hazardous chemicals in the work area; How to reduce or prevent exposure to these hazardous chemicals by using engineering controls, work practices and personal protective equipment; Steps Harvest has taken to reduce or prevent exposure to these chemicals; and Emergency procedures to follow if an employee is exposed to chemicals. 12 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC Training will be provided at the time of initial assignment to tasks where occupational exposure to a hazardous chemical may take place. Training will be repeated whenever a new chemical or a new hazard is introduced in the work area. The Director of Human Resources will ensure that employees receive this training. After attending the training, employees will sign a Hazard Communication Training Record verifying that they understand the above topics and how the topics are related to the Harvest’s hazard communication policies and procedures. QUALITY ASSURANCE TR AINING All employees will receive, at a minimum, the following quality assurance training: Quality Systems Hazard Analysis and Critical Control Points; Policies which prohibit employees showing signs of illness, open wounds, sores or skin infections from handling cannabis or materials that come into contact with cannabis; Hygiene training for employees who handle cannabis with specific attention to preventing microbial contamination; and Handwashing requirements including washing hands with soap and hot water before beginning work, after using the bathroom, after handling cash and after meal breaks. Quality Assurance department employees will also be required to complete the additional training components: Fundamentals of quality systems; Developing standard operating procedures; and Continual improvement assessment. RETAIL TRAINING All employees working in retail will receive, at a minimum, the following training: The processes and equipment used by Harvest for customer interaction and sale of cannabis; Retailer responsibilities under state law and regulation; Security protocols and procedures; and Quality control procedures and protocols. Prior to independently engaging in Harvest’s cannabis retail operation, the employee will be provided information and training related to: An overview of Harvest’s process and standard operating procedures; Proper and safe usage of equipment or machinery; 13 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC Safe work practices applicable to an employee’s job tasks including appropriate use of any necessary safety or sanitary equipment; Cleaning and maintenance requirements; Emergency operations, including shutdown; and Any additional information reasonably related to an employee’s job duties. CONTINUING EDUCATION Continuing education training will be conducted to ensure that employees remain proficient in their operational functions and in their understanding of the rules set forth by the BCC and all applicable state and local laws, regulations, ordinances and other requirements. Employees must continually demonstrate a working knowledge of training m aterials and all policies and procedures as a condition of employment. An annual refresher training is mandatory regarding all job-related procedures. Employees will receive at least twelve (12) hours of ongoing training annually or more often as necessary to maintain compliant, safe, and productive operations. TRAINING RECORDS Harvest will maintain records of any training received by employees for the performance of all assigned functions for a minimum of seven (7) years.2 Each record of required training will include, at a minimum: Name of employee that received the training; Content of the training provided; Employee identification badge number; Signed annual attestation by Harvest that the employee has received and understood all information and training provided in the training program; Signed statement from the employee indicating the date, time and place of training; Dates of training completion for all personnel; Dates of refresher training completion for all personnel and content of the refresher training; Name and title of presenter(s); and Certificate of attendance indicating satisfactory completion of training signed by presenter(s). The Director of Human Resources will maintain all Harvest training records and logs in each employee’s personnel file. Harvest will maintain a list of all personnel at the premises, including name and job duties of each. All personnel files will be available to the City, the BCC, and all other applicable governmental entities upon request. 2 CSLOMC 9.10.130(F) 14 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC EVALUATION OF TRAINI NG CONTENT The Director of Human Resources will solicit feedback on the quality and efficacy of training from employees who received the training. The Director of Human Resources will also solicit feedback from customers, vendors, consultants and other stakeholders about the competence of Harvest’s employees in the areas that the trainings address. Feedback solicited from these stakeholders will address the quality of interactions with employees, any policies or procedures directly affecting the stakeholder, and any changes in the way Harvest will be perceived by the stakeholder. The Director of Human Resources, in coordination with the Director of Retail Operations and all other managers, will ensure training content, including content presented by third -party trainers, meets the needs and requirements of Harvest. STAFF FEEDBACK The Director of Human Resources will solicit feedback on the quality and efficacy of a training module from the staff who received the training. Feedback may be solicited utilizing th e following methods: Post-training group discussions; Individual interviews; and Anonymous surveys. STAKEHOLDER FEEDBACK The Director of Human Resources will solicit feedback from consumers, vendors, consultants, community members and others, as appropriate, about the competence of the company in the areas that the training program addressed. Feedback solicited from stakeholders should address the following: The quality of interactions with staff; Any changes in company policies or procedures directly affecting the stakeholder; The effectiveness of the company overall; and Any changes in the way the company is perceived by the stakeholder. OBSERVATION AND PERF ORMANCE REVIEW The Director of Human Resources in coordination with the Director of Retail Operations and managers, will evaluate the effectiveness of training through observation of employee performance. These evaluations should consider: 15 HARVEST ENTERPRISES OF SAN LUIS OBISPO, LLC Adoption of policies, procedures, concepts and attitudes presented in the training for new employees; Level of improvement, drive or lack thereof in the performance of veteran staff; Adoption of the training topics in practice and how well are they working; Managers and trainer observations of staff attitudes, methods or competency; and The level of discussion between staff members and managers regarding training topics presented on an ongoing basis. AMERICANS FOR SAFE A CCESS PATIENT FOCUSE D CERTIFICATION Harvest currently operates two (2) Medical Retail Facilities that have received a “Patient Focused Certification” through the organization Americans for Safe Access (ASA). ASA is the premier organization for patient safety and advocacy. This prestigious organization trains doctors and registered qualifying patients on the use of medical marijuana. Patient Focused Certification (PFC) is a program that patients, healthcare providers, companies and regulators can depend on to identify reliable medical cannabis products and services. The certification program is based on the new high-quality standards for medical cannabis products and businesses that is issued by the American Herbal Products Association (AHPA) and the American Herbal Pharmacopeia (AHP) Cannabis monograph. To obtain the certification, Harvest conducted extensive employee training, completed a facility audit, participated in product testing, implemented all suggested corrective actions and audited all records. Harvest will obtain certification for the SLO retail facility and continue to uphold the program’s objectives. Educating employees in the areas of protocols and procedures in all operations with an emphasis on both regulation and best practice is one of PFC’s primary objective that Harvest will emphasize at the SLO Retail Facility. CONCLUSION Harvest is committed to education in our operations. In empowering the local community to make informed decisions about the benefits cannabis in their life as well as the potential harms and consequences, Harvest will always put facts before profits. Company staff will be trained and receive continuing education, so they remain up-to-date on all developments and are always providing the most current information available to patrons and the wider community. Harvest strives to be a reputable resource and offer support to those individuals who are curious, concerned, or otherwise questioning this rapidly developing and significant plant, and we believe our commitment to education helps us achieve that goal. 16 Learn how. Keep your child safe. In partnership with the Centers for Disease Control and Prevention (CDC)17 Know the facts. Approximately 60,000 young children are brought to the emergency room each year because they got into medicines that were left within reach. Families take medicines and vitamins to feel well or stay well. Any medicine or vitamin can be dangerous if taken in the wrong way or by the wrong person, even medicine you buy without a prescription (known as over-the-counter medicine). All medicines and vitamins should always be kept up and away and out of your child’s reach and sight. 2 | Up and away and out of sight 18 www.UpandAway.org | 3 19 Protect your child. Here’s how. Put medicines and vitamins up and away— out of reach and out of sight. Children are curious and put all sorts of things in their mouths. Even if you turn your back for less than a minute, they can quickly get into things that could hurt them. Pick a place your children cannot reach Find a place in your home that is too high for children to reach or see. Different families will have different places. Walk around your home and find the best place to store yourmedicines and vitamins up and away. Put medicines and vitamins away after each use Always put every medicine and vitamin away every time you use it. This includes medicines and vitamins you use every day. Never leave them out on a kitchen counter or at a sick child’s bedside, even if you have to give the medicine again in a few hours. 4 | Up and away and out of sight 20 Hear the click to make sure the safety cap is locked Always relock the safety cap on a medicine bottle. If the medicine has a locking cap that turns, twist it until you hear the “click” or until you can’t twist anymore. Remember, even though many medicines and vitamins have safety caps, children may be able to open them. www.UpandAway.org | 5 21 Teach your children about medicine safety Tell your children what medicine is and why you must be the one to give it to them. Never tell children medicine is candy to get them to take it, even if your child does not like to take his or her medicine. Tell guests about medicine safety Remind guests to keep purses, bags, or coats that have medicines in them up and away and out of sight when they’re in your home. 22 Be prepared in case of an emergency. www.UpandAway.org | 7 Keep the Poison Help number in all of your phones: 800) 222-1222 Or text “POISON” TO 797979 to automatically save it. Call right away if you think your child might have gotten into a medicine or vitamin. 23 Up and Away and Out of Sight is an educational program to remind families of the importance of safe medicine storage. It is part of the PROTECT Initiative, in partnership with the Centers for Disease Control and Prevention (CDC). In partnership with the Centers for Disease Control and Prevention (CDC) When accidents happen or if you have questions, call Poison Help at 800) 222-1222 Keep this number in all of your phones, or text “POISON” TO 797979 to automatically save it. www.UpandAway.org 24 Harvest of Tucson is on track to open its doors to the public on January __th, with our Grand Opening celebration taking place January 12th from 11:00 AM to 3:00 PM! In addition to huge sales and specials, appearances by Arizona medical cannabis vendors, live music, and Bella’s Gelato. Dr. Troutt will also host his New Patient Orientation at 10:00 AM on the 12th. If you have a friend or family member in Tucson who is considering medical cannabis as a health choice, Dr. Troutt’s educational session is the best resource around for them to learn about cannabis dosing, its eff ects, and realistic expectations. No medical cannabis card is needed to attend, so all are welcome! We’re beyond excited to fi nally show southern Arizona what Harvest is all about! Winter - 2017 - GRANDOPENINGTUCSON ONLINE NEWSLETTER ONLINE ORDERING For patients who manage their health alongside a busy schedule, Harvest has great news for you; we are now off ering online and phone orders at all Harvest locations! To place an express order, simply visit: harvestofaz.com/online-orders Sign up at the link near the top of the page, and choose the items you’d like to purchase. Additionally, patients can call the main number for any Harvest location to place an order by phone. All orders will be ready in ten minutes or less! 25 After our application was considered, Harvest was recently granted a cultivation license in the state of Ohio! The license permits Harvest to initially operate up to 25,000 square feet of medical cannabis cultivation space. We were one of 12 companies recently chosen from an applicant pool of 109, and we were also the only company with two winning applications. See the winners of each category at: https://azmarijuana.com/best-of-2017 Did you forget to stop by the ATM before visiting Harvest? We’ve got you covered, as select Harvest locations are now accepting Hypur as a method of payment! Hypur allows you to make your dispensary purchase directly from your bank account through their phone app, with no debit or credit card required. Tempe and Scottsdale are now accepting Hypur as a method of payment, and we hope to have it set up at all of our other locations soon. 2017 has been the most consequential year in Harvest’s history so far, and your enduring support has enhanced our passion and ability to serve medical cannabis patients. As our mission expands to new endeavors in new regions, we hope to carry yourencouragementforwardandcontinuemakingadifference. Visit HarvestofAZ.com/calendar to view all our events / Follow us on Social Media! Visit harvestofaz.com/survey to let us know your thoughts. Ohio Announcement Harvest was founded with one mission: to improve people’s lives. We accomplish this mission by empowering patients to take control of their health and well-being, and one way we facilitate that process is by growing high-quality, standardized medicine,” said our CEO Steve White. Being awarded the provisional license in Ohio further validates our model and approach that we’ve been relentlessly bringing to markets since 2013 and making medical cannabis more accessible to patients who need it.” Here’s to your health, and to the future! We want to thank all of our enthusiastic patients who recently voted Harvest Dispensaries as the Best in Arizona in AZMarijuana’s Best of 2017 polls! 26 Security Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC 1 2 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 5/10/18 1 10/18 2 10/18 3 5/10/18 4 5/10/18 5 5/10/18 6 5/10/18 7 5/10/18 8 5/10/18 9 5/10/18 10 5/10/18 11 d 5/10/18 12 n Lighting Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC N) TELLERSTATIONS( N) SECURE STG.(N) OFFICE(N) RETAIL( N) RECEPTION( N) LOBBYK-3422WELLWORTHTOILETSVITREOUS CHINA ( E) ADAALL GENDERRESTROOM( N) JANITORIAL15 SQ. FT.LIGHTING PLANSCALE: 1/ PROPOSEDTENANTIMPROVEMENT309HIGUERAST.2, 046 SQ. FT.( E) BUILDING311 HIGUERA ST.NOPARKINGWALKER ST. 92.58' PROPERTY LINE44.82' PROPERTY LINE70.50' Site and Floor Plans Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC SITEPLANSCALE: 3/16"=1'- 0"LEGEND: PROPERTY LINELANDSCAPEBUILDING LINEPROPOSED T.I.STANDARDSTALLH/ C1PROPOSEDTENANT IMPROVEMENT309 HIGUERA ST.2,046 SQ. FT.( EXISTINGWALLTO REMAINLEGEND:(N) TELLER STATIONS220 SQ. FT.( N) SECURE STG. 200 SQ. FT.(N) OFFICE156 SQ. FT.(N) Water Efficiency Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HARVEST OF SAN LUIS OBISPO, LLC WATER EFFICIENCY PLA N Although Harvest is aware that water efficiency is a primary concern for cultivation facilities and not necessarily a retail operation where water use is limited to restrooms and handwashing facilities, to continue Harvest’s commitment to the environment and sustainable efforts and overall minimization of our own environmental impact, Harvest will adopt water efficiency strategies that are both dynamic and forward thinking. Our company cares deeply about the environment and the judicious use of scarce resources, such as water. To achieve these objectives, Harvest has created a company-wide corporate environmental sustainability plan through four key strategies that focus on 1) minimizing our energy use, 2) harnessing renewable energy, 3) reducing waste, and 4) recycling resources. These strategies are discussed in detail in our Energy Efficiency Plan. The Facility Manager will ensure that Harvest’s water management operations are in line with these objectives and comply with all applicable regulations set forth by the Bureau of Cannabis Control (“BCC”), as well as all other state and local laws, regulations, ordinances and other requirements. In our restroom facilities, Harvest will install efficient low -flow toilets and urinals and handwashing sinks with automatic shutoff sensors. Newer models of low water use toilets may use 1.26 or less gallons per flush. Harvest intends to use the lowest gallon per flush toilet possible in the facility. Harvest may also purchase a refrigerator or dishwasher for employee use, both of which would be water saving models. Harvest will derive its water supply from the City of San Luis Obispo Utilities Department, which sources its water primarily from the Whale Rock, Salinas, and Nacimiento Reservoirs. These sources provide safe, potable, and sufficient supply of water to satisfy all the needs and requirements of the facility. To reduce water-related waste, Harvest will provide water bottle filling stations to be readily available for both patrons and employees. Water bottle filling stations will be located in the main lobby area to encourage the reuse of water bottles. Harvest will provide its employees company water bottles to encourage sustainable practices and lower demand for plastic water bottles. We will partner with our local water provider, the City of San Luis Obispo Utilities Department, and take advantage of all applicable conservation rebates and other programs offered to reduce water waste. As part of this partnership with our local water provider, we will welcome water and energy use audits and will review and implement all recommendations for improving efficiency. As part of this compliance, and to go beyond just conservation and efficient water use, Harvest will follow San Luis Obispo’s Municipal Code and its Water Efficient Landscapes Standards. Drought tolerant plants will be used for most or all of Harvest’s outdoor landscaping, limiting demand for outdoor water usage. Harvest may also install a rainwater collection system to utilize for outdoor landscaping water use. The Facility Manager will also regularly inspect for any leaks in water pipes and hoses so as to identify and mitigate any leaks as soon as they occur, limiting wasted water. 1 HARVEST OF SAN LUIS OBISPO, LLC The chart displays possible barrels used to collect rain water. If these systems are not visible from a public right-of-way and compliant with all other City laws and regulations, these systems may be set up without a City permit. Overall, Harvest will foster an employee culture of environmental consciousness and responsibility. Harvest will post signs throughout the facility to create an awareness for water conservation. The Facility Manager will monitor water usage through the facility’s regular water bills and will note when further conservation efforts must be implemented. 2 Odor Control Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HARVEST OF SAN LUIS OBISPO, LLC ODOR CONTROL PLAN If not properly managed, odor from commercial cannabis operations can become a facility security risk and a nuisance to the surrounding community and neighboring businesses. Though retail sale of pre-packaged cannabis goods are perhaps the least odor-intensive types of commercial cannabis activity, Harvest remains committed to odor control in the interest of being a good neighbor and environmental steward. Harvest will implement an appropriate odor mitigation program for the nature of the operations. The odor mitigation strategies described here are consistent with industry best practice and compliant with all applicable state and local laws and regulations, including regulations promulgated by the Bureau of Cannabis Control (“BCC”). Current odor control strategies will be updated as new technologies become available and revised promptly following a finding of noticeable cannabis odor outside of the licensed retail premises, whether such finding is made by an employee, a representative of a cannabis regulatory authority, or a member of the public. Our plans for odor mitigation, summarized below, utilize a combination of odor mitigation equipment, monitoring, and regular maintenance to prevent any cannabis odor arising from our operations from creating a nuisance for the surrounding community. ODOR MITIGATION MEAS URES AND EQUIPMENT VENTILATION The facility will be equipped with a ventilation system to maintain air quality and prevent any odor of cannabis from accumulating in or escaping from the premises. Every occupied space will be ventilated by natural or mechanical means in accordance with the International Mechanical Code (“IMC”) and all other applicable state and local requirements. The ventilation system will be properly designed to control the retail store environment and to preserve product quality, with consideration for the square footage and ventilation requirements of each type of operational space. Exhaust vents on rooftops will direct exhaust away from public spaces, such as sidewalks. It is company policy that the odor of cannabis must not be detectable by a person with a normal sense of smell from outside the facility or any adjoining property.1 If this policy is violated, management will respond immediately with appropriate odor mitigation measures. Our Director of Community Outreach will proactively engage with our neighbors and the community to ensure they know they can raise any concerns or issues to Harvest and our team will quickly work to remedy the situation. Harvest will operate as a responsible neighbor and in a manner aimed at preventing offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic, or hazards from being detectable beyond the facility. Harvest’s plans and designs for the proposed facility will integrate a robust HVAC system and air filtration technology so that air circulation and cannabis odor do not impact our 1 CSLOMC 17.55.90 E(3) 1 HARVEST OF SAN LUIS OBISPO, LLC customers and employees’ health and welfare or negatively impact surrounding businesses. Harvest will utilize appropriate measures in construction and operations to prevent the emissions of dust, smoke, noxious gases, or other substances that have the potential to impact local or regional air quality. Harvest will install a ventilation system that adequately controls for odor, humidity, and mold. ACTIVE CARBON FILTER S The facility will be equipped with an inline charcoal exhaust system in every space that contains cannabis goods, including storage spaces. The inline charcoal exhaust system forces air circulating within the HVAC system through an activated carbon filter. Carbon filtration is widely regarded as the industry standard for odor mitigation in cannabis facilities. These filters contain activated carbon which, through the process of adsorption, tr aps impurities and odor particles in microscopic carbon pores. Carbon filters are naturally ideal for odor mitigation and only filters will the capacity to remove ninety-nine percent (99%) of odor will be used in Harvests’ facility. Active carbon filters will also be placed at all air exhaust points from the facility, ensuring that odor particles are removed from the air before discharge into the external atmosphere. This includes exhaust points for air circulated in non -cannabis spaces as well. Carbon-filtered air will leave the facility through an exhaust fan located on the roof of the facility as a secondary odor prevention measure. The number of carbon filters in the facility will be determined in calculations based on the square footage of the spaces requiring odor mitigation and the anticipated degree of odor. Harvests’ proposed retail operations are unlikely to create odor issues for the surrounding community, and Harvest is confident that the odor mitigation technologies described here will well exceed what will be necessary for the proposed operations. IONIZER AIR PURIFICA TION EQUIPMENT Harvest will also install an air purification system that converts oxygen and water molecules in the air into ionized hydroperoxides, super oxide ions, and hydroxid e ions, i.e. friendly oxidizing agents known to kill or eliminate bacteria, viruses, mold, allergens and Volatile Organic Compounds (“VOCs”). Cannabis odor results from terpenoid plant components, or terpenes, which readily evaporate at normal atmospheric conditions and are thus VOCs. In the ionization air purification process, VOCs are rendered inert when oxidized. After oxidation, VOCs experience a change in chemical composition and no longer give any aromatic fragrance or odor. Air ionizers are proven effective air sterilizers as they charge air particles, causing them to readily stick together. Eventually the charged particles coagulate to a size too heavy to remain airborne. 2 HARVEST OF SAN LUIS OBISPO, LLC Odors are vapor molecules that our noses can detect when levels surpass odor detection thresholds. Harvest’s air purification system works to both render cannabis VOC’s inert through oxidation and remove the particles’ ability to remain airborne through ionization. The oxidizers and ion output of the air purification system is distributed through an air-conditioned space using that space’s air conditioning system’s ductwork. Thus, the air purification and ion system is distributed to the entire space being serviced by that air conditioning system, in our case, the entire retail facility. Visual representation of the process described above. Harvest will install and maintain equipment, including activated charcoal filters and an ionized air purification system, that prevents internal odors from being emitted externally. The HVAC system assists the filtration and purification efforts as it creates negative air pressure between the interior and exterior so that odors generated inside are not detectable outside the facility. MONITORING AND MAINT ENANCE Carbon filters will be replaced regularly to ensure the continued effectiveness of the odor mitigation system. This is particularly important with active carbon filters, as the carbon particles bond the odor particles that pass through the filter and, at a certain saturation point, become unable to bond additional odor particles. The Facility Manager will be responsible for replacing all carbon filters in accordance with the filter manufacturer’s recommendations and maintaining records of inspection, maintenance, and replacement. Filters will be inspected monthly to ensure proper functionality. The Facility Manager will also walk the perimeter of the facility and surrounding grounds once per week specifically to gauge whether there is any detectable odor emanating from the facility. Further mitigation strategies will be explored and implemented in the unlikely event that Harvests’ efforts are found to be inadequate for odor mitigation. 3 HARVEST OF SAN LUIS OBISPO, LLC NUISANCE PREVENTION Harvest is committed to maintaining positive relationships with businesses and surrounding community members within all buildings adjacent to the retail facility. Before operations begin, Harvest’ Director of Community Outreach will visit each nearby business to provide company contact information and encourage them to reach out immediately should there be an issue with cannabis odor or any other matter. Harvest will record and investigate each comment or complaint from neighboring businesses regarding odor and will take measures to address all legitimate complaints to the satisfaction of the complainant and any other stakeholders. A more robust explanation of Harvest’s nuisance prevention plan can be found in the Community Benefit Plan. 4 Hazardous Materials Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HAZARDOUS MATERIALS PLAN Based on the proposed operations of the retail facility, Harvest does not anticipate handling hazardous materials or generating hazardous waste in any significant amount. It is Harvest policy to avoid the acquisition of hazardous materials and the generation of hazardous waste to the greatest degree possible. Examples of potentially hazardous waste at the retail facility may include: vaporizer batteries, cleaning products and sanitation aids. Harvest will select cleaning products and sanitation aids that are Environmental Protection Agency (“EPA”) approved and deemed safe and adequate under the conditions of use. Cleaning compounds and sanitizing agents will be acquired in the smallest amount practical for the intended use, clearly identified, stored in accordance with label instructions and used in a manner that protects against contamination of surfaces, goods and California’s natural resources. If the generation, handling, or storage of hazardous materials or waste at the facility cannot be avoided, all activities involving hazardous materials or waste will be handled, stored and disposed of in a manner that is consistent with federal, state and local laws and requirements, including Public Resources Code § 40141 and the requirements of the City of the San Luis Obispo Certified Unified Program Agency and the San Luis Obispo Fire Department. In accordance with the California Health and Safety Code and the U.S. EPA’s Worker Protection Standard, any hazardous wastes that may be present at the facility will be handled, stored and disposed of in a manner conforming to the manufacturer's Safety Data Sheet and labeling guidelines. If stored on -site, hazardous waste will be secured in a sealed and locked container within a limited -access area, prior to off-site disposal. Hazardous waste will be removed from the premises by a state-approved commercial waste hauler and all applicable hazardous waste records will be stored on -site and available to state and local authorities, upon request, for a minimum of seven (7) years.1 All waste streams will be assessed for hazardous waste. Employees will be trained to properly handle, use and store environmentally hazardous materials on the site, if any. 1 CSLOMC 9.10.130(F) Energy Efficiency Plan Commercial Cannabis Business Application San Luis Obispo, California Harvest of San Luis Obispo, LLC HARVEST OF SAN LUIS OBISPO, LLC ENERGY EFFICIENCY PL AN Sustainability is engrained in Harvest ’s company ethos: from utilizing carbon-free power sources, to zero waste policies and water conservation. Harvest will work to promote the importance of energy, water and resource waste reduction and overall sustainability to its employees, patrons, and neighboring and partnered businesses. To implement Harvest’s corporate sustainability plan and minimize our environmental impact, our facility has been designed with sustainability in mind. Once operational, Harvest will undergo an audit once per quarter to ensure our operations are meeting our energy goals and are as energy efficient as possible, and to review and determine if new sustainable technologies should be implemented. Additional audits may be added as needed. Harvest will track and measure energy usage and utilize these reports to determine the results of energy efficient practices. Harvest understands there will be rapid and continual development in new methods and technologies to reduce energy consumption and as such our corporate sustainability plan is a living document. We will always measure our progress and adjust our sustainability strategies as needed to protect the environment and resources of the City of San Luis Obispo SLO” or the “City”) and the greater state of California. Throughout the construction of the facility and the development of the property, Harvest will follow green building and landscaping practices in order to reduce landfill waste, conserve natural resources, increase energy efficiency, improve indoor air quality and overall minimize impacts on the natural environment. Once the facility is constructed, so as to eliminate our reliance on carbon power sources and to promote Harvest’s company policy of renewable, reliable and sustainable business practices, Harvest will utilize carbon -free energy sources for one hundred percent (100%) of Harvest’s energy needs. In order to keep sustainable practices at the forefront of Harvest’s operations and practices, Harvest has developed a four-prong strategy for long term sustainability goals. CEQA COMPLIANCE Harvest understands its responsibility to prepare any environmental documents required by state and local jurisdiction for compliance with California Environmental Quality Act CEQA”). Harvest will conduct and pay for any required CEQA reviews, and pay for all costs of ensuring environmental compliance, including those of the City. CARBON -FREE ENERGY SOURCES Harvest is pleased to hear about SLO’s recent partnership with Monterey Bay Community Power (“MBCP”), a regional public agency that provides carbon free power to the Central Coast. Harvest understands that the entire city, including residences and businesses, will be provided energy by MBCP starting in 2020. MBCP will utilize Pacific Gas & Electric’s PG&E”) infrastructure and transmission lines to administer MBCP’s power, which will lead to a seamless switch from the PG&E power currently available at the property to MBCP. 1 HARVEST OF SAN LUIS OBISPO, LLC MBCP’s energy sources are all carbon free energy sources, including wind, solar, biomass and hydroelectric power. These power projects are all located in California, and none produce greenhouse gases. Though there will be a voluntary opt -out option when MBCP begins to provide power in SLO, Harvest will not opt-out of the option to use carbon-free energy sources. Harvest is thrilled to potentially locate in a city so dedicated to sustainable practices that it is leading the nation in its carbon-free and renewable energy sources. Harvest has researched PG&E resources and spoken with PG&E representatives to understand how best to utilize one hundred percent (100%) carbon-free energy sources until MBCP begins to provide SLO and Harvest’s energy needs. The best available program providing one hundred percent (100%) carbon free power sources to Harvest’s proposed facility is PG&E’s Solar Choice program. PG&E’s Solar Choice program allows Harvest to purchase one hundred percent (100%) of our electricity from a solar program within California, without requiring installation of rooftop solar panels at the facility itself. The cost of this program will be at a premium to Harvest, approximately an extra penny per kilowatt, however California’s environment and natural resources are of paramount concern and ensuring our facility is powered with one hundred percent 100%) carbon free energy sources from day one is essential. Harvest will enroll with the Solar Choice program as soon as possible. The enrollment requires simply informing PG&E that Harvest desires one hundred percent (100%) of its power come from carbon-free sources, and then PG&E will switch Harvest’s service to the Solar Choice electrical. Harvest will be provided power at a higher rate than standard PG&E electrical power. The chart above displays PG&E’s regular breakdown of energy sources includes approximately 27% percent renewable energy sources. With the Solar Choice Program, Harvest will have 100% carbon free and renewable energy sources. 2 HARVEST OF SAN LUIS OBISPO, LLC SLO CLIMATE COALITIO N Last fall, SLO announced its goal of becoming carbon-neutral by 2035, a target that is ten (10) years ahead of former Governor Jerry Brown’s goal of reaching carbon-neutrality by 2045 throughout the State of California. In order to be an active participant and community member in pursuit of this goal and to maintain SLO’s leadership in environmental efforts, Harvest will join the SLO Climate Coalition, if granted a local license. The SLO Climate Coalition (“Coalition”) meets twice a month on Thursday evenings and Harvest intends to be a regular attendee and active participant in their meetings and efforts. The Coalition’s goal is to leverage community expertise, creativity and resources to multiply SLO’s efforts to become carbon free. Harvest is excited to partner with the Coalition and the City to achieve a carbon free SLO by 2035. Carbon-neutrality, or net-zero energy, means reducing greenhouse gas emissions and CO2 from the atmosphere, with the overall goal to achieve a zero -carbon footprint. Greenhouse gases are emitted from cars and businesses, among other sources. In order to help meet SLO’s goal and to limit our own emissions, we will work to reduce greenhouse gases emitted by our facility, our cars, our employees, our neighbors, and our patrons. We are excited to partner with SLO in such noble efforts. EMISSIONS OF AIR POL LUTANTS AND USE OF FUEL -EFF ICIENT VEHICLES Although it is difficult to precisely estimate our anticipated emission of air pollution, Harvest will work with an environmental consultant once we have a better estimate of our annual electricity and fuel usage. Our facility will be designed to minimize and avoid air pollutant emissions by using equipment and practicing environmental sustainability. In line with SLO’s mission of reaching carbon neutrality by 2035, Harvest will utilize fuel efficient, low emission and/or electric vehicles for the delivery of cannabis goods and accessories to patrons and patients. Harvest will install electric vehicle charging stations at the facility for our delivery vehicles and use by patrons and employees. ANTICIPATED GREENHOU SE GAS EMISSIONS Because it is difficult to precisely estimate our greenhouse gas emissions before commencing operations, Harvest will work with an environmental auditing company to provide calculations of anticipated greenhouse gas emissions for our facility. Based upon our planned facility size, we will estimate greenhouse gas emissions per year during operations. To ensure our greenhouse gas emissions are offset during the first year of operation, and until such time when physical auditing systems and smart meters are installed at the facility, Harvest will budget to offset at least one hundred and ten percent (110%) of our first year CO2 emissions through the purchase of third -party verified carbon offsets. 3 HARVEST OF SAN LUIS OBISPO, LLC Once implemented, our smart meters will provide real -time energy use data. This data, combined with regular third-party carbon auditing, will give Harvest a precise calculation of our annual greenhouse gas emissions. To ensure that all Harvest business activities are carbon-neutral, the company will budget for and purchase carbon offsets equaling to no less than one hundred and ten percent (110%) of our ongoing annual emissions. Our operations will not violate any State, regional or local plans for the reduction of greenhouse gases, nor will they exceed any applicable threshold of significance for greenhouse gas emissions under the CEQA. In fact, every year, we will aim to decrease our greenhouse gas emissions to be on track with the City for carbon neutrality by 2035. LONG -TERM SUSTAINABILITY PLAN STRATEGY 1 – REDUCIN G ENERGY USE STRATEGY 2 – RENEWAB LE ENERGY 4 HARVEST OF SAN LUIS OBISPO, LLC STRATEGY 3 – ZERO WA STE INITIATIVE STRATEGY 4 – RECYCLI NG RESOURCES 5 HARVEST OF SAN LUIS OBISPO, LLC 6