Prior ordinance history: Ords. 944 and 964.
The purpose and intent of this chapter is to permit commercial medicinal and adult-use cannabis businesses to operate in certain areas of the city, as designated in Title 9 (Planning and Zoning) of this code, provided that the applicant: (1) obtains a commercial cannabis conditional use permit pursuant to Chapter 9.09.290 (Commercial cannabis activities) of this code, a commercial cannabis regulatory permit pursuant to this chapter, a city business license, and a certificate of occupancy; (2) registers the commercial cannabis business pursuant to Chapter 3.28 (Commercial cannabis activity tax) of this code; and (3) obtains the appropriate commercial cannabis state license issued by the Bureau of Cannabis Control pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act and its implementing regulations adopted by the Bureau of Cannabis Control (16 Cal. Code of Regulations Section 5000 et seq.) (collectively "State Cannabis Regulations"), a seller's permit issued by the California Department of Tax and Fee Administration, and all other relevant and necessary regulatory permits, licenses and regulations within the purview of the California Department of Food and Agriculture, the California Department of Public Health and any other relevant state agencies.
(Ord. 971 § 2, 2020)
The definitions set forth in Section 5000 (Definitions) of Article 1 (Division Definitions) of the Bureau of Cannabis Control Regulations are hereby incorporated by reference as though set forth at length herein and they shall be relied upon for purposes of administering, applying and interpreting the provisions of this chapter.
(Ord. 971 § 2, 2020)
A commercial cannabis regulatory permit shall be required in order to conduct or operate, within certain designated zoning districts of the city, the following types of commercial medicinal and/or adult-use cannabis activities:
A. 
Cannabis dispensaries;
B. 
Cannabis testing;
C. 
Cannabis cultivation;
D. 
Cannabis manufacturing;
E. 
Cannabis distribution centers;
F. 
Cannabis microbusinesses.
(Ord. 971 § 2, 2020)
Eligible applicants include any of the entities eligible to apply for a commercial cannabis state license issued by the Bureau of Cannabis Control pursuant to the State Cannabis Regulations.
(Ord. 971 § 2, 2020)
Eligible applicants may apply for a commercial cannabis regulatory permit under this chapter, pursuant to the administrative procedures duly adopted and implemented by the city manager or designee.
(Ord. 971 § 2, 2020)
An applicant shall submit documentary evidence that the applicant has the right to occupy the premises for purposes of conducting a commercial cannabis business. Such evidence may include the following:
A. 
If an applicant is not the record owner of the real property upon which the premises of the proposed commercial cannabis business is located, the applicant shall submit a document from the landowner or the landowner's agent, such as a signed rental agreement or lease or other legally binding document or instrument, that states that the applicant has the right to occupy the subject property or premises and acknowledges that the applicant may use the subject premises for the business for which the applicant is applying for a commercial cannabis regulatory permit, that includes the applicant's, the owner's (if different that the applicant) and the property owner's or the property owner's agent's notarized signatures.
B. 
If an applicant is the record of the real property upon which the premises is located, the applicant shall submit with the application a copy of the title, deed or title policy or title report applicable to the subject property, that demonstrates there are no agreements, restrictive easements or conditions, covenants or restrictions prohibiting the use of the subject property or subject premises for commercial cannabis activities.
(Ord. 971 § 2, 2020)
An applicant shall pay the following fees:
A. 
An application processing fee in an amount set by resolution of the city council;
B. 
An annual regulatory fee in an amount set by resolution of the city council;
C. 
An annual community benefits fee in an amount set by resolution of the city council; and
D. 
Any other fees for any additional services that must be provided by the city or charged to the city by another agency with regulatory authority that are not encompassed in any of the above fees.
Upon denial or withdrawal of an application or abandonment due to an incomplete application, the applicant shall be entitled to a refund for only the annual regulatory fee and community benefits fee, less any costs incurred by the city in processing the applications not sufficiently covered by any other fees paid by the applicant.
(Ord. 971 § 2, 2020)
An application for a commercial cannabis regulatory permit may be denied for the following reasons:
A. 
Same reasons that a state license may be denied by the Bureau of Cannabis Control under the State's Cannabis Regulations, the California Department of Food and Agriculture, the California Department of Public Health and/or any other relevant state agencies.
B. 
The city has been denied access to inspect the subject property and subject premises.
C. 
The applicant's premises diagram does not conform to the boundaries or dimensions of the actual physical premises.
D. 
The applicant loses the legal consent or permission of the record owner of the subject property or premises to operate or conduct a commercial cannabis business on the subject property or subject premises.
E. 
The applicant's fee payments are rejected, denied or cancelled due to insufficient funds or inadequate credit.
F. 
The applicant has failed to pay any fees, taxes or fines owed to the city or owes any outstanding civil debt to the city.
The applicant has any outstanding code violations pertaining to any real property located within the city.
(Ord. 971 § 2, 2020)
A provisional cannabis regulatory permit may be approved provided that the applicant provides adequate proof that the applicant will meet all the requirements and operational standards required of the proposed commercial cannabis activity's respective state license consistent with the State Cannabis Regulations and all other applicable state laws and regulations within the purview of the California Department of Food and Agriculture, the California Department of Public Health and any other relevant state agencies.
(Ord. 971 § 2, 2020)
A provisional commercial cannabis regulatory permit shall be deemed a final permit and become effective upon such time that the applicant: (1) obtains a commercial cannabis conditional use permit pursuant to Chapter 9.09.290 (Commercial cannabis activities) of this code, a city business license, and a certificate of occupancy;(2) registers the commercial cannabis business pursuant to Chapter 3.28 (Commercial Cannabis Activity Tax) of this code; and (3) obtains the appropriate commercial cannabis state license issued by the Bureau of Cannabis Control pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act and its implementing regulations adopted by the Bureau of Cannabis Control (16 Cal. Code of Regulations Section 5000 et seq.) (collectively "State Cannabis Regulations"), a seller's permit issued by the California Department of Tax and Fee Administration, and all other relevant and necessary regulatory permits, licenses and regulations within the purview of the California Department of Food and Agriculture, the California Department of Public Health and any other relevant state agencies.
(Ord. 971 § 2, 2020)
A commercial cannabis regulatory permit, whether provisional or final, shall require the permittee to defend, indemnify and hold harmless the city and the city's elected and appointed officials, commissioners, board members, officers, agents, consultants and employees from any and all liabilities, demands, claims, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and reasonable attorneys' fees), which any or all of them may suffer, incur, be responsible for or pay out as a result of or in connection with any challenge to the legality, validity or adequacy of any of the following items: (1) approval of the subject commercial cannabis regulatory permit; (2) any prior agreements by and between the city and permittee; (3) any concurrent and subsequent permits, licenses and entitlements approved by the city related to the subject business; (4) any environmental determination made by the city in connection with the subject business; and (5) any proceedings or other actions undertaken by the city in connection with the adoption, approval or denial of any of the above.
(Ord. 971 § 2, 2020)
To remain effective, a commercial cannabis regulatory permit must be renewed on an annual basis pursuant to the administrative procedures duly adopted and implemented by the city manager or designee. Such renewal may be summarily granted upon payment of any applicable renewal application processing fee, the annual regulatory fee and the annual community benefits fee in the amounts set by resolution of the city council, in addition to any other fees for any additional services that must be provided by the city or charged to the city by another agency with regulatory authority that are not encompassed in any of the above fees, and the permittee's state license remains in good standing which shall mean that the permittee's annual state license has not been suspended, revoked or expired.
(Ord. 971 § 2, 2020)
A commercial cannabis business shall provide the city manager or designee with the name, phone number, facsimile number, and email address of an on-site community relations contact, staff person or other representative to whom the city can provide notice if there are operating problems associated with the business or refer members of the public who may have any concerns or complaints regarding the operation of the business. A commercial cannabis business shall also provide the above information to its business neighbors located within 100 feet of the business as measured in a straight line without regard to intervening structures, between the front doors of each establishment.
(Ord. 971 § 2, 2020)
A permittee shall comply with all applicable operational standards and requirements set forth in its state license, the State Cannabis Regulations, all regulatory permits and licenses issued by the California Department of Food and Agriculture, the California Department of Public Health and any other relevant state agencies and the regulations within their respective purviews, its conditional use permit and all applicable zoning and regulations set forth in this code.
(Ord. 971 § 2, 2020)
For purposes of construing and enforcing the provisions of this chapter, any act, omission, or failure of an agent, officer, representative, or other person acting for or employed by a commercial cannabis business, within the scope of his or her employment or office, shall in every case be deemed the act, omission, or failure of the business.
(Ord. 971 § 2, 2020)
It shall be unlawful to operate a commercial cannabis business in violation of any applicable provisions of this code, any specific, additional operating procedures and measures as may be imposed as conditions of approval of a commercial cannabis regulatory permit and/or the entity's conditional use permit, any provisions of the State Cannabis Regulations, any regulatory permits and licenses issued by the California Department of Food and Agriculture, the California Department of Public Health and any other relevant state agencies and the regulations within their respective purviews, and/or due to the suspension, revocation or expiration of the entity's temporary, conditional or annual state license issued by the Bureau of Cannabis Control.
(Ord. 971 § 2, 2020)
If any of the provisions set forth in this chapter conflict with any conditions of approval or mandatory requirements contained in any pre-existing commercial cannabis permits, including, without limitation, a provisional of final regulatory permit or conditional use permit, duly approved by the city prior to the effective date of this chapter, the city manager or community development director and their respective designees shall be authorized to administratively waive, without prior planning commission or city council review and approval, any condition of approval or mandatory requirement imposed under the city's former commercial cannabis regulations that the city manager or the community development director of their respective designees in consultation with the city attorney determines has been superseded by the provisions set forth in this chapter.
(Ord. 971 § 2, 2020)