This chapter shall be known as the Cannabis Business Permit
Ordinance of the City of Santee.
(Ord. 602 § 2, 2022)
It is the purpose and intent of this chapter to implement the
provisions of the Medicinal and Adult Use Cannabis Regulation and
Safety Act ("MAUCRSA") to accommodate the needs of medically
ill persons in need of cannabis for medicinal purposes as recommended
by their health care provider(s), and to provide access to same. It
is also the purpose and intent of this chapter to provide access to
adult-use cannabis for persons aged 21 and over as authorized by the
Control, Tax and Regulate the Adult Use of Cannabis Act ("AUMA"
or "Proposition 64"), while imposing sensible regulations
on the use of land to protect City residents, neighborhoods, and businesses
from disproportionately negative impacts. It is the purpose and intent
of this chapter to regulate the commercial cultivation, processing,
manufacturing, testing, sale, delivery, and distribution of cannabis
and cannabis products in a responsible manner to protect the health,
safety, and welfare of the residents of the City and to enforce rules
and regulations consistent with State law and in a fair and equitable
manner.
(Ord. 602 § 2, 2022)
Pursuant to Sections 5 and 7 of Article XI of the California
Constitution, the provisions of MAUCRSA, any subsequent State legislation
and regulations regarding same, the City is authorized to adopt ordinances
that establish standards, requirements and regulations for the licensing
and permitting of commercial medicinal and adult-use cannabis activity.
Any standards, requirements, and regulations regarding health and
safety, security, and worker protections established by the State
of California, or any of its departments or divisions, shall be the
minimum standards applicable in the City to all commercial cannabis
activity.
(Ord. 602 § 2, 2022)
Except as specifically authorized by this chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution, or transportation of cannabis or cannabis products is expressly prohibited in the City. Violations of this chapter are subject to penalties under the
Health and Safety Code and
Penal Code in addition to the penalties set forth in Section
7.04.520. Outdoor cultivation is expressly prohibited within the City.
(Ord. 602 § 2, 2022)
It is the responsibility of the owners, agents, employees, affiliates,
and/or operators of any commercial cannabis business within the City
limits to ensure that they operate in a manner compliant with this
chapter, all applicable State and local laws, and any regulations
promulgated thereunder, including, but not limited to, the MAUCRSA.
(Ord. 602 § 2, 2022)
"Applicant"
means a person or entity that submits an application for
a cannabis business permit under this chapter.
"Cannabis"
means all parts of the Cannabis sativa Linnaeus, Cannabis
indica, or Cannabis ruderalis, whether growing or not; the seeds thereof;
the resin, whether crude or purified, extracted from any part of the
plant; and every compound, manufacture, salt, derivative, mixture,
or preparation of the plant, its seeds, or resin. "Cannabis"
also means the separated resin, whether crude or purified, obtained
from cannabis. "Cannabis" does not include the mature
stalks of the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized
seed of the plant which is incapable of germination. For the purpose
of this chapter, "cannabis" does not mean "industrial
hemp" as defined by Section 11018.5 of the California Health
and Safety Code. Cannabis shall also have the same meaning as in Section
26001(f) of the
Business and Professions Code, as same may be amended
from time to time.
"Cannabis business permit" or "permit"
means a regulatory permit issued by the City pursuant to
this chapter, to a commercial cannabis business and is required before
any commercial cannabis activity may be conducted in the City. The
issuance of the cannabis business permit and annual renewal of a cannabis
business permit is made expressly contingent upon the business's
ongoing compliance with all of the requirements of this chapter and
any regulations adopted by the City governing the commercial cannabis
activity at issue.
"Cultivation"
means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis. All references to
cultivation allowed under this chapter mean indoor cultivation only.
"Director"
shall mean the Director of Development Services or designee.
"Dispensing"
means any activity involving the retail sale of cannabis
or cannabis products from a retailer.
"Distributor"
shall have the same meaning as that appearing in Business
and Professions Code Section 26070.
"Enforcement officer"
means any designee authorized by the City Manager to enforce
a violation of this chapter.
"Hearing officer"
shall mean an authorized hearing officer designated by the
City Manager.
"Laboratory"
means a laboratory, facility or entity in the State that
offers or performs tests of cannabis or cannabis products and that
is both of the following: (1) accredited by an accrediting body that
is independent from all other persons involved in commercial cannabis
activity in the State; and (2) licensed by the State Department of
Cannabis Control within the Business, Consumer Services, and Housing
Agency.
"Limited-access area"
means an area in which cannabis is stored or held and is
only accessible to a licensee and authorized personnel.
"Manufactured cannabis"
means raw cannabis that has undergone a process whereby the
raw agricultural product has been transformed into a concentrate,
extraction or other manufactured product intended for internal consumption
through inhalation or oral ingestion or for topical application.
"Manufacturing site"
means a location that produces, prepares, propagates, or
compounds cannabis or cannabis products, directly or indirectly, by
extraction methods, independently by means of chemical synthesis,
or by a combination of extraction and chemical synthesis, and is owned
and operated by a person issued a valid cannabis business permit for
manufacturing from the City and a valid State license as required
for manufacturing of cannabis products.
"Medicinal cannabis"
means cannabis or a cannabis product, respectively, intended
to be sold or donated for use pursuant to the Compassionate Use Act
of 1996 (Proposition 215), found in Section 11362.5 of the Health
and Safety Code, by a medicinal cannabis patient in California who
possesses a physician's recommendation, or in compliance with
any compassionate use, equity, or other similar program administered
by a local jurisdiction.
"Microbusiness"
means a business that engages in at least three of the following
activities at one location: indoor cultivation (up to 10,000 total
square feet), manufacturing, distribution, or retail (storefront or
non-storefront).
"Non-store front retailer"
is a subset of "retailer" and is a licensed retail
business that is closed to the public and provides product to customers
solely by means of a delivery service which the retailer owns and
controls.
"Nonvolatile solvent"
means any solvent used in the extraction process that is
not a volatile solvent as defined by State law. For purposes of this
chapter, nonvolatile solvents include carbon dioxide, ethanol, and
nonhydrocarbon-based or other solvents such as water, vegetable glycerin,
vegetable oil, animal fat, and glycerin.
"Owner"
means any of the following:
1.
A person with an aggregate ownership interest of 10% or more
in the commercial cannabis business, unless the interest is solely
a security, lien, or encumbrance.
2.
An individual who manages, directs, or controls the operations
of the commercial cannabis business, including, but not limited to:
a.
A member of the board of directors of a nonprofit.
b.
A general partner of a commercial cannabis business that is
organized as a partnership.
c.
A non-member manager or manager of a commercial cannabis business
that is organized as a limited liability company.
d.
The trustee(s) and all persons who have control of the trust
and/or the commercial cannabis business that is held in trust.
e.
An individual with the authority to provide strategic direction
and oversight for the overall operations of the commercial cannabis
business, such as the chief executive officer, president or their
equivalent, or an officer, director, vice president, general manager
or their equivalent.
f.
An individual with the authority to execute contracts on behalf
of the commercial cannabis business.
"Person"
shall mean any individual, firm, partnership, joint venture,
association, corporation, limited liability company, estate, trust,
business trust, receiver, syndicate, or any other group or combination
acting as a unit.
"Processing"
means a cultivation site that conducts only trimming, drying,
curing, grading, packaging, or labeling of cannabis and non-manufactured
cannabis products.
"Retailer" or "store front retailer"
shall have the same meaning as that contained in Business
and Professions Code Section 26070(a)(1), which defines a retailer
as having a physical location form which commercial cannabis activities
are conducted. A retailer's premises may be closed to the public.
A retailer may conduct sales exclusive by delivery.
"Sheriff"
means the Sheriff of the County of San Diego.
"State license"
means a permit or license issued by the State of California,
or one of its departments or divisions, under the MAUCRSA and any
subsequent related State of California legislation, to engage in cannabis
activity. A State license alone will not authorize the holder to operate
a cannabis business, as State law also requires a permit or other
authorization issued by a local jurisdiction.
"Topical cannabis"
means a product intended for external application and/or
absorption through the skin. A topical cannabis product is not considered
a drug as defined by
Health and Safety Code Section 109925.
"Transport"
means the transfer of cannabis products from the permitted
business location of one licensee to the permitted business location
of another licensee, for the purposes of conducting cannabis activity
authorized by the MAUCRSA which may be amended or repealed by any
subsequent related State of California legislation. Transport can
only be performed by licensed distributors and does not include deliveries
of cannabis or cannabis products.
"Youth center"
means any:
1.
Public or private facility that is primarily used to host recreation,
academic, or social activities for minors, including, but not limited
to:
a.
Private youth membership organizations or clubs;
b.
Social service teenage club facilities;
c.
Video arcades where 10 or more video games or game machines
or devices are operated, and where minors are legally permitted to
conduct business; or
d.
Similar amusement park facilities.
2.
Park, playground, or recreational area specifically designed
to be used by children which has play equipment installed, including
public grounds designed for athletic activities such as baseball,
softball, soccer, or basketball, or any similar facility located on
a public or private school grounds, or on City, County, or State parks.
"Youth center"
shall not include any private martial arts, yoga, ballet,
dance, music, art studio or similar studio of this nature nor shall
it include any private gym, athletic training facility, pizza parlor,
dentist office, doctor's office primarily serving children,
or a location which is primarily utilized as an administrative office,
or a facility for youth programs or organizations.
(Ord. 602 § 2, 2022)
No person may engage in any cannabis business within the City
including cultivation, manufacture, processing, laboratory testing,
distributing, dispensing, or sale of cannabis or a cannabis product
unless the person meets all of the following requirements:
A. Possesses
a valid cannabis business permit from the City;
B. Possesses
a valid State of California seller's permit, as applicable;
C. Is currently
in compliance with all applicable State and local laws and regulations
pertaining to the cannabis business and the cannabis activities, including
the duty to obtain any required State licenses;
D. Possesses
a City business license.
(Ord. 602 § 2, 2022)
This section is only intended to create a maximum number and
types of cannabis businesses that may be issued permits to operate
in the City.
A. After
the effective date of the ordinance codified in this chapter, the
City shall only issue cannabis business permits (consistent with this
chapter) for up to four retailers, including microbusinesses that
include storefront retail activities. There is no limit on the number
of cannabis business permits that the City may issue to testing laboratories
or microbusinesses that do not include storefront retail.
B. Each
year following the City Council's initial grant of permits (if
any), or at any time in the City Council's discretion, the City
Council may reassess the number of cannabis business permits which
are authorized for issuance and may make changes to the number by
resolution.
C. The
City Council at its sole discretion may determine that the number
and/or types of cannabis business permits should remain the same or
be modified.
(Ord. 602 § 2, 2022)
The City reserves the right to reject any or all applications
for a cannabis business permit. Prior to such permit issuance, the
City may modify, postpone, or cancel any request for applications,
at any time without liability, obligation, or commitment to any person,
party, firm, or organization, to the extent permitted under State
law. Persons submitting applications assume the risk that all or any
part of the request for applications, or any particular category of
permit potentially authorized under this chapter, may be cancelled
at any time prior to permit issuance. The City further reserves the
right to request and obtain additional information from any candidate
submitting an application. In addition to a failure to comply with
other requirements in this chapter, an application may be rejected
for any of the following reasons:
A. The
cannabis business permit application was received after the designated
time and date of the deadline.
B. The
cannabis business permit application did not contain the required
elements, exhibits, or was not organized in the required format.
C. The
cannabis business permit application was considered not fully responsive
to the request for a permit application – that is, the application
was substantially incomplete as determined by the City Manager.
(Ord. 602 § 2, 2022)
A cannabis business permit shall be exercised within 12 months
of issuance. "Exercised" shall mean when any of the following
occur:
A. A certificate
of occupancy has been issued;
B. The
permitted use(s) has commenced on the site; or
C. A City
building permit or grading permit is secured, and construction lawfully
commenced.
(Ord. 602 § 2, 2022)
All cannabis business permits issued under the provisions of this chapter shall be effective for a period not to exceed one year. The City Manager may renew a permit through the procedures identified in Section
7.04.180 of this code.
(Ord. 602 § 2, 2022)
If an applicant is denied a cannabis business permit due to
a disqualifying factor such as failing a background check or not complying
with any State or local jurisdiction's regulatory requirements
in which legal or administrative action has been taken, a new application
may not be filed for two years from the date of the denial. This section
shall not apply to an applicant who passed the initial application
screening process but was not granted a cannabis business permit by
the City Council.
(Ord. 602 § 2, 2022)
A cannabis business permit may be revoked by the City Manager
for any violation of any State or local laws, rules, standards, policies,
procedures, or regulations in this chapter relating to cannabis, or
any violation of the applicable community benefit agreement.
(Ord. 602 § 2, 2022)
Suspension of a license issued by the State of California, or
by any of its departments or divisions, shall immediately suspend
the ability of a cannabis business to operate within the City until
the State of California or its respective department or division reinstates
or reissues the State license.
(Ord. 602 § 2, 2022)
Revocation of a license issued by the State of California, or
by any of its departments or divisions, shall immediately revoke the
ability of a cannabis business to operate within the City until the
State of California or its respective department or division takes
appropriate action. Should the State revoke a license, the cannabis
business owner may reapply for a new cannabis business permit at such
time as it can demonstrate that the grounds for revocation of the
license by the State no longer exist or that the underlying deficiency
has otherwise been cured.
(Ord. 602 § 2, 2022)
Appeals relating to denial of a cannabis business permit application;
denial of advancement to the final selection process; to revocation
or suspension a cannabis business permit; to denial of renewal of
a cannabis business permit; or the addition of conditions to a cannabis
business permit shall be conducted as prescribed by resolution of
the City Council and shall be subject to a fee as established by resolution
of the City Council.
(Ord. 602 § 2, 2022)
Prior to commencing operations, a cannabis business shall obtain a City business license as required under Chapter
4.02.
(Ord. 602 § 2, 2022)
Prior to commencing operations, a cannabis business permit shall
be subject to a mandatory building inspection and must obtain all
required permits and approvals which would otherwise be required for
any business of the same size and intensity operating in that zone.
This includes, but is not limited to, obtaining any required building
permit(s), Fire Department approval, Code Enforcement approvals, Department
of Development Services approval, Sheriff's Department approval,
County of San Diego Health Department approval, and any other applicable
zoning and land use permit(s) and approvals.
(Ord. 602 § 2, 2022)
Prior to commencing operations, a cannabis business must obtain authorization from the Director, certifying that the business is located on a site that meets all of the requirements of Sections
7.04.260,
7.04.280, and
7.04.290.
(Ord. 602 § 2, 2022)
Prior to the City's issuance of a cannabis business permit
pursuant to this chapter, any person intending to open and to operate
a cannabis business shall first provide sufficient evidence of the
legal right to occupy and to use the proposed location. Such evidence
may include a notarized lease, notarized real estate records, and/or
other notarized official records that demonstrate a legal right to
occupy. If the proposed location will be leased from the property
owner, the applicant shall be required to provide a signed and notarized
statement from the owner of the property, acknowledging that the property
owner has read this chapter and consents to the operation of the cannabis
business on the owner's property.
(Ord. 602 § 2, 2022)
Cannabis businesses permitted to engage in retail, distribution,
manufacturing, testing labs, and microbusiness operations for cannabis
and cannabis products are subject to the following zoning and locational
requirements:
A. Distribution,
manufacturing, testing laboratories and microbusiness that do not
include storefront retail activities are only permitted in the following
zone districts: IL (Light Industrial) and IG (General Industrial),
and must satisfy all the applicable requirements set forth in Title
13 of this Code.
B. Retail
businesses (including microbusinesses that include storefront retail
activities but do not include cultivation) are only permitted in the
following zone districts: IL (Light Industrial), IG (General Industrial),
and GC (General Commercial), and must meet all the requirements pursuant
to Title 13 of this code.
|
Land Use Designation
|
---|
Land Use
|
GC
|
IL
|
IG
|
---|
Distribution, manufacturing
|
—
|
P
|
P
|
Microbusinesses with storefront retail and without cultivation
|
P
|
P
|
P
|
Microbusinesses with cultivation
|
—
|
P
|
P
|
Storefront Retail
|
P
|
P
|
P
|
Non-storefront Retail
|
—
|
P
|
P
|
Testing Labs
|
—
|
P
|
P
|
C. All
cannabis business permittees must also meet all of the following distance
requirements:
1. The cannabis business shall be no closer than 900 feet from any zoned parcel in the City designated by the City and State law as a sensitive use, and pursuant to subsection
(C)(2) of this section. The distance measured shall be the horizontal distance measured in a straight line from the property line of those parcels in subsection
(C)(2) of this section to the closest property line of the lot on which the cannabis business is located.
2. It
shall be no closer than 900 feet from any parcel containing any of
the following that is in existence at the time the license is issued:
a. A school providing instruction in kindergarten or any grades one
through 12 (whether public, private, or charter, including preschool,
transitional kindergarten, and K—12);
b. A commercial daycare center licensed by the State, County or City;
c. A church or other religious institution; and
d. A youth center. A "youth center" means any public or
private facility that is primarily used to host recreation, academic,
or social activities for minors, including, but not limited to:
i. Private youth membership organizations or clubs,
ii. Social service teenage club facilities,
iii. Video arcades where 10 or more video games or game machines or devices
are operated, and where minors are legally permitted to conduct business,
or
iv. Similar amusement park facilities.
"Youth center" shall also include a park, playground,
or recreational area specifically designed to be used by children
which has play equipment installed, including public grounds designed
for athletic activities such as baseball, softball, soccer, or basketball,
or any similar facility located on a public or private school grounds,
or on City, County, or State parks.
|
"Youth center" shall not include any private martial
arts, yoga, ballet, dance, music, art studio or similar studio of
this nature nor shall it include any private gym, athletic training
facility, pizza parlor, dentist office, doctor's office primarily
serving children, or a location which is primarily utilized as an
administrative office, or a facility for youth programs or organizations.
|
D. Each
proposed cannabis business shall also:
1. Conform
with the City's General Plan, any applicable specific plan,
master plan, and design requirements.
2. Comply
with all applicable zoning and related development standards.
3. Be
constructed in a manner that minimizes odors to surrounding uses,
and promotes quality design and construction, and consistency with
the surrounding properties.
4. Be
adequate in size and shape to accommodate the yards, walls, fences,
parking and loading facilities, landscaping and all items required
for the development.
5. Be
served by roadways adequate in width and improved as necessary to
carry the kind and quantity of traffic such use will generate.
6. Be
provided with adequate electricity, sewerage, disposal, water, fire
protection and storm drainage facilities for the intended purpose.
(Ord. 602 § 2, 2022)
To the fullest extent permitted by law, the City shall not assume
any liability whatsoever with respect to having issued a cannabis
business permit pursuant to this chapter or otherwise approving the
operation of any cannabis business. As a condition to the approval
of any cannabis business permit, the applicant shall be required to
meet all of the following conditions before they can receive the cannabis
business permit:
A. Execute
an agreement, in a form approved by the City Attorney, agreeing to
indemnify, defend (at applicant's sole cost and expense), release,
and hold the City, and its officers, officials, employees, representatives,
and agents, harmless, from any and all claims, losses, damages, injuries,
liabilities, or losses which arise out of, or which are in any way
related to, the City's issuance of the cannabis business permit,
the City's decision to approve the operation of the cannabis
business or activity, the process used by the City in making its decision,
or the alleged violation of any Federal, State or local laws by the
cannabis business or any of its officers, employees or agents.
B. Take
out and maintain, at all times while operating the cannabis business,
and in a form and with insurance companies acceptable to the City:
(1) commercial general liability insurance with a limit of no less
than $2,000,000 per occurrence and $4,000,000 aggregate for bodily
injury (including death), personal injury and property damage; and
(2) if permittee or permittee's employees use vehicles in the
operation of the business, automobile liability insurance for bodily
injury (including death) and property damage including coverage for
owned, non-owned and hired vehicles, with a limit of no less than
$1,000,000 per occurrence. The City of Santee, its City Council and
each member thereof, its officers, employees, and agents shall be
named as an additional insured on the commercial general liability
policy. If permittee maintains higher limits than the minimum required
above, the City requires and shall be entitled to coverage for the
higher limits maintained by permittee. Any available insurance proceeds
in excess of the specified minimum limits of insurance and coverage
shall be available to the City. Insurance requirements may be adjusted
from time to time by the City Manager.
C. Reimburse
the City for all costs and expenses, including, but not limited to,
legal fees and costs and court costs, which the City may be required
to pay as a result of any legal challenge related to the City's
approval of the applicant's cannabis business permit or related
to the City's approval of a cannabis activity. The City, at
its sole discretion, may participate at its own expense in the defense
of any such action, but such participation shall not relieve any of
the obligations imposed on applicant hereunder.
(Ord. 602 § 2, 2022)
The City Manager may develop other cannabis business operational
requirements or regulations as are determined to be necessary to protect
the public health, safety, and welfare.
(Ord. 602 § 2, 2022)
Prior to commencing delivery operations, a cannabis retailer,
cannabis non-store front retailer and micro-business shall provide
the following information to the City:
A. Proof
of ownership of the vehicle or a valid lease for any and all vehicles
that will be used to deliver cannabis or cannabis products.
B. The
year, make, model, color, license plate number, and numerical vehicle
identification number (VIN) for any and all vehicles that will be
used to deliver cannabis goods.
C. Proof of insurance as required in Section
7.04.300(B) for any and all vehicles being used to deliver cannabis goods.
D. The
permittee shall provide the City with the information required by
this section in writing for any new vehicle that will be used to deliver
cannabis goods prior to using the vehicle to deliver cannabis goods.
E. The
permittee shall provide the City with any changes to the information
required by this section in writing within 30 calendar days.
(Ord. 602 § 2, 2022)
Prior to commencing operations, a cannabis out-of-City delivery
service shall comply with the following requirements:
A. Obtain
from the City a permit authorizing the delivery of cannabis and cannabis
products within the City limits. A copy of this permit shall be retained
by all drivers.
B. The
retail business operating the delivery service shall provide the City
Manager with evidence of a valid State license for a cannabis business
on whose authorization the delivery service is performing the delivery
function.
C. The
retail business operating the delivery service shall furnish to the
City Manager the year, make, model, license plate number, and numerical
vehicle identification number (VIN) for any and all vehicles that
will be used to deliver cannabis goods.
(Ord. 602 § 2, 2022)
Cannabis delivery businesses located outside of the City permitted
to engage in delivery of cannabis and cannabis products inside the
City are subject to the following requirements:
A. A licensed
cannabis business shall not deliver cannabis goods to an address located
on publicly owned land or any address on land or in a building leased
by a public agency.
B. A licensed
cannabis business shall comply with all requirements of State and
local law pertaining to the cannabis business permit and all subsequent
policies, procedures and regulations which may be amended by the City
Manager from time to time in order to enforce this chapter.
C. Any
kiosk, iPad, tablet, smart phone, fixed location, or technology platform,
whether manned or unmanned, other than a retail location permitted
by the City, that facilitates, directs, or assists the retail sale
or delivery of cannabis or cannabis products is prohibited and shall
be a violation of this chapter.
(Ord. 602 § 2, 2022)
The requirements set forth in Sections
7.04.360 through
7.04.430 apply to microbusinesses, to the extent that the microbusiness is engaging in the specified activity.
(Ord. 602 § 2, 2022)
The amount of any fee, cost or charge imposed pursuant to this
chapter shall be deemed a debt to the City that is recoverable via
an authorized administrative process as set forth in this code or
in any court of competent jurisdiction.
(Ord. 602 § 2, 2022)
The person to whom a cannabis business permit is issued pursuant
to this chapter shall be responsible for all violations of the laws
of the State of California or of the regulations and/or the ordinances
of the City, whether committed by the permittee or any employee or
agent of the permittee, which violations occur in or about the premises
of the cannabis business whether or not said violations occur within
the permit holder's presence.
(Ord. 602 § 2, 2022)
Each and every violation of the provisions of this chapter constitutes
a misdemeanor and is hereby deemed unlawful and a public nuisance.
The City reserves the right to pursue any available legal remedy to
address violations of this chapter.
(Ord. 602 § 2, 2022)
No person(s) (including any applicant, owner, and/or permittee)
shall have any vested rights to any permit, right, and/or interest
under this chapter, regardless of whether such person(s) cultivated,
sold, distributed, and/or otherwise engaged in acts related to the
use of cannabis prior to the adoption of the ordinance codified in
this chapter.
(Ord. 602 § 2, 2022)