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)
means a person or entity that submits an application for
a cannabis business permit under this chapter.
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.
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.
means a person or entity that has received a cannabis business
permit from the City as authorized under this chapter.
has the same meaning as that term is defined in Health and
Safety Code Section 11362.7.
means the City Manager or designee.
means any business or operation which engages in medicinal
or adult-use commercial cannabis activity.
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.
shall mean the Director of Development Services or designee.
means any activity involving the retail sale of cannabis
or cannabis products from a retailer.
shall have the same meaning as that appearing in Business
and Professions Code Section 26070.
means any designee authorized by the City Manager to enforce
a violation of this chapter.
shall mean an authorized hearing officer designated by the
City Manager.
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.
means an area in which cannabis is stored or held and is
only accessible to a licensee and authorized personnel.
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.
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. As used in this chapter, "manufacturing"
or "manufacturing site" does not include the use of volatile solvents
and this chapter does not permit manufacturing that would require
a Type 7 License under State law.
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.
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).
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.
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.
means any of the following:
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.
An individual who manages, directs, or controls the operations
of the commercial cannabis business, including, but not limited to:
A member of the board of directors of a nonprofit.
A general partner of a commercial cannabis business that is
organized as a partnership.
A non-member manager or manager of a commercial cannabis business
that is organized as a limited liability company.
The trustee(s) and all persons who have control of the trust
and/or the commercial cannabis business that is held in trust.
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.
An individual with the authority to execute contracts on behalf
of the commercial cannabis business.
shall have the same meaning as that contained in California
Health and Safety Code Section 11362.7 et seq., as it may be amended,
and which includes within its definition a person who is entitled
to the protections of California Health and Safety Code Section 11362.22.
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.
shall have the same meaning as that contained in California
Health and Safety Code Section 11362.7.
means a cultivation site that conducts only trimming, drying,
curing, grading, packaging, or labeling of cannabis and non-manufactured
cannabis products.
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.
means the Sheriff of the County of San Diego.
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.
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.
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.
means a solvent as defined by Health and Safety Code Section
11362.3(b)(3) as of the effective date of this chapter and as subsequently
amended.
means any:
Public or private facility that is primarily used to host recreation,
academic, or social activities for minors, including, but not limited
to:
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.
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.
means a solvent as defined by Health and Safety Code Section
11362.3(b)(3) as of the effective date of this chapter and as subsequently
amended. Under this chapter, use of volatile solvents as part of the
manufacturing process is prohibited.
(Ord. 602 § 2, 2022; Ord. 614, 3/13/2024)
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)
A.
Any
person who is an owner, employee, agent, and/or who otherwise works
within a cannabis business must be legally authorized to do so under
applicable State law.
B.
Cannabis
business owners, operators, investors, managers, and employees shall
be required to submit to a criminal background check for themselves
and all persons in their employment.
C.
The
City Manager shall conduct or cause to be conducted annual criminal
background checks which must at a minimum identify the following:
1.
Whether
the owners, operators, investors, managers, and employees applying
for employment have ever been convicted of a violent felony as defined
by California Penal Code 667.5 or equivalent offenses in other States;
2.
Whether
the owners, operators, investors, managers, and employees have ever
been convicted of a felony for hiring, employing, or in transporting,
carrying, selling, giving away, preparing for sale, or peddling, any
controlled substance; or selling, offering to sell, furnishing, offering
to furnish, administering, or giving any controlled substance to a
minor; or
3.
Whether
the owners, operators, investors, managers, and employees have ever
been convicted of a felony for drug trafficking with enhancements
pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.
D.
Evidence of a conviction of any the offenses enumerated in subsection C of this section shall be grounds for denial of ownership or employment.
E.
Violation
of this section shall be grounds for immediate suspension of the business's
operating cannabis business permit, pending a hearing before the City
Manager within 30 days for a final determination of the status of
the permit.
(Ord. 602 § 2, 2022)
A.
Any
person, including, but not limited to, 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, in which any of the following actions
or notices have been issued for noncompliance, shall not be eligible
to obtain a cannabis business permit from the City or employment with
a cannabis business permittee in the City:
1.
The
applicant has been denied a cannabis permit (excluding an applicant
that did not receive a permit in another jurisdiction due solely to
a limited and/or set number of permits and/or licenses), or has had
a cannabis permit or license suspended or revoked by any City, County,
City and County, or any other State cannabis licensing authority;
2.
The
applicant was notified by the State, County, or City that it was conducting
cannabis activity in violation of City ordinances, codes, and requirements,
and failed to cure the violation in a timely manner;
3.
Evidence
that the applicant is delinquent in payment of Federal, State, or
local taxes and/or fees, and took no steps to cure the delinquency
when notified by the appropriate agencies;
4.
No person shall be issued a cannabis business permit if such person enters or has entered into either a verbal or written agreement to lease, sublease, or any other agreement for any terms of use of a premises granted by a property owner, commercial broker, or any third party, that is in violation of Section 7.04.070 unless that property is leased at fair market value. Any such lease, sublease, or agreement shall not contain terms or conditions requiring the cannabis business permittee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the City. In addition, all leases, subleases, or other agreements must be based on a monthly rate.
(Ord. 602 § 2, 2022)
This section is only intended to create a maximum number and
to specify the only types of cannabis businesses that may be issued
permits to operate in the City. All other cannabis uses are prohibited.
A.
After the effective date of the ordinance codified in this section,
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, manufacturing (non-volatile only) 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; Ord. 614, 3/13/2024)
A.
The
application process for a cannabis business permit shall include a
component on community benefits, the terms of which shall be set out
and memorialized in a community benefit agreement.
B.
Any
community benefits that a cannabis business agrees to provide shall
be incorporated into the terms and conditions under which the cannabis
business will operate with the City's approval, if and when a cannabis
business permit is issued. Such terms and conditions shall be in addition
to the requirements of this chapter.
C.
Community
benefits may include, but will not be limited to: in-kind donations;
sponsorship of select community events; financial support for special
community events such as fairs, afterschool programs, youth centers,
local schools (whether public or private); school athletic programs;
school clubs; community centers, homeless shelters, senior centers
and/or senior living facilities, and/or parks and recreation programs,
and the payment of mutually agreeable fees and charges.
D.
The
community benefit agreement may provide that the community benefit
fee will expire upon the establishment of a City commercial cannabis
tax.
(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.
By resolution,
the City Council shall adopt procedures and review criteria for the
City's evaluation of cannabis business permit applications. A cannabis
business permit application shall be required prior to review and
approval of any land use entitlement, business license or other City
authorization.
B.
The
procedures shall provide the process for soliciting applications including
time frames, limitations, forms, and rules for completing applications.
C.
Should the City Council, pursuant to authority granted under Section 7.04.100 of this code, establish a maximum number of cannabis businesses that may be issued a cannabis business permit, the review criteria shall include detailed instructions on the methodology to be used to evaluate applications on a point, or other evaluation system, tied to particular sets of criteria.
D.
The
scoring on review criteria shall be used to determine which candidates
will be eligible to proceed to the final selection process as determined
by City Council resolution.
E.
The
City Manager shall be authorized to prepare any necessary forms and
adopt any necessary rules to implement the procedures guidelines and
review criteria.
F.
At the
time of filing, each applicant shall pay an application fee established
by resolution of the City Council to cover all costs incurred by the
City in the application process.
(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)
A.
Once
the permitted cannabis use is legally established and operational,
the use must remain in continuous operation or all use rights are
subject to termination. If a permitted use ceases to operate for a
period of four or more months, then the use shall be considered abandoned
unless a mitigating circumstance occurred that was beyond the control
of the permittee and an extension is authorized by the City Manager.
B.
The
approval of a new use shall terminate all rights and approvals of
a cannabis business permit occupying the same site or location.
(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.
All
licenses 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 this section.
B.
An application
for renewal of a cannabis business permit shall be filed at least
90 calendar days prior to the expiration date of the current permit,
but no earlier than 180 calendar days prior to the expiration date
of the current permit, unless a different time period is set forth
by the City Manager.
C.
The
renewal application shall contain all the information required for
new applications.
D.
The
applicant shall pay a fee in an amount to be set by the City Council
to cover the costs of processing the renewal permit application, together
with any costs incurred by the City to administer the program created
under this chapter.
E.
An application
for renewal of a cannabis business permit shall be rejected if any
of the following exists:
1.
The
application is filed less than 90 days before its expiration unless
the City Manager, at the City Manager's sole discretion, approves
an extension of the deadline.
2.
The
cannabis business permit is suspended or revoked at the time of the
renewal application.
3.
The
cannabis business has not been in regular and continuous operation
in the four months prior to the renewal application or the approved
extension of the deadline from the City Manager.
4.
The
cannabis business has failed to conform to the requirements of the
cannabis business permit or this chapter or any regulations adopted
pursuant to this chapter.
5.
The
permittee fails or is unable to renew its State of California license.
6.
If
the State has determined, based on substantial evidence, that the
permittee or applicant is in violation of the requirements of the
State rules and regulations and the State has determined that the
violation is grounds for termination or revocation of the cannabis
business permit.
F.
The
City Manager is authorized to make all decisions concerning the issuance
of a renewal permit. In making the decision, the City Manager is authorized
to impose additional conditions to a renewal permit, if it is determined
to be necessary to ensure compliance with State or local laws and
regulations or to preserve the public health, safety, or welfare.
Appeals from the decision of the City Manager 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. If a renewal
cannabis business permit application is denied, a person may file
a new application pursuant to this chapter no sooner than one year
from the date of the denial.
(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)
A.
Any
time the business location specified in the cannabis business permit
is proposed to be changed, the permittee and/or applicant shall submit
an updated application to the City Manager for approval prior to the
change in location.
B.
Within
15 calendar days of any other change in the information provided in
the updated application form or any change in status of compliance
with the provisions of this chapter, including any change in the cannabis
business ownership or management members, the applicant shall file
an updated application with the City Manager for review along with
an application fee.
(Ord. 602 § 2, 2022)
A.
The owner of a cannabis business permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains a written and executed amendment to the permit from the City Manager stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files a cannabis business permit application with the City Manager in accordance with all provisions of this chapter (as though the transferee were applying for an original cannabis business permit). The proposed transferee's application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee). The transferee's application will be treated as a new application, and will be evaluated according to procedures adopted by the City Manager, pursuant to Section 7.04.130, and/or by resolution of the City Council.
B.
Cannabis
business permits issued through the grant of a transfer by the City
Manager shall be valid for a period of one year beginning on the day
the City Manager approves the transfer of the permit. Before the transferee's
permit expires, the transferee shall apply for a renewal permit and
pay the appropriate fee in the manner required by this chapter.
C.
A cannabis
business permit shall not be transferred when the City has notified
the permittee in writing that the permit has been or may be suspended
or revoked.
D.
Any
attempt to transfer a cannabis business permit either directly or
indirectly in violation of this section is hereby declared a violation
of the permit and this ordinance. Such a purported transfer shall
be deemed a ground for revocation of the permit.
E.
This
section shall not apply to the extent the current owners are attempting
to add a new and/or additional owner whose ownership interest is less
than 50% of the business, but all other remaining owners shall remain
in place. Any new and/or additional ownership, however, shall require
written approval by the City Manager in accordance with procedures
adopted by the City Manager and/or by resolution of the City Council.
Failure to obtain such approval prior to adding a new owner will result
in a violation of the permit and this chapter, and shall be deemed
a ground for revocation.
(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 also subject to the following zoning and
locational requirements of this chapter. Not all of the types of cannabis
businesses listed below are currently uses that are allowed by permit
in the City.
A.
Distribution, manufacturing (non-volatile only), 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. Distribution that is not part of a permitted microbusiness is not currently a use that is allowed by permit in the City.
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
|
Land Use Designation
| ||
|---|---|---|---|
|
GC
|
IL
|
IG
| |
|
Distribution (not currently a use that is allowed by permit
in the City) manufacturing (non-volatile only)
|
—
|
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.
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"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.
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"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.
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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; Ord. 614, 3/13/2024)
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)
A.
Each
owner and operator of a cannabis business shall maintain accurate
books and records in an electronic format, detailing all of the revenues
and expenses of the business, and all of its assets and liabilities.
On no less than an annual basis (at or before the time of the renewal
of a cannabis business permit issued pursuant to this chapter), or
at any time upon reasonable request of the City, each cannabis business
shall file a sworn statement detailing the number of sales by the
cannabis business during the previous 12-month period (or shorter
period based upon the timing of the request), provided on a per-month
basis. The statement shall also include gross sales for each month,
and all applicable taxes and fees paid or due to be paid. On an annual
basis, each owner and operator shall submit to the City a financial
audit of the business's operations conducted by an independent certified
public accountant. Each permittee shall be subject to a regulatory
compliance review and a gross receipts financial audit, where applicable,
as determined by the City Manager.
B.
Each
owner and operator of a cannabis business shall maintain a current
register of the names and the contact information (including the name,
address, and telephone number) of anyone owning or holding an interest
in the cannabis business, and separately of all the officers, managers,
employees, agents, and volunteers currently employed or otherwise
engaged by the cannabis business. The register required by this subsection
shall be provided to the City Manager upon a reasonable request.
C.
All
cannabis businesses shall maintain an inventory control and reporting
system that accurately documents the present location, amounts, and
descriptions of all cannabis and cannabis products for all stages
of the growing, production, manufacturing, retail, and laboratory
testing processes (as applicable) until purchase as set forth in the
MAUCRSA.
(Ord. 602 § 2, 2022)
A.
A cannabis
business permittee shall implement sufficient security measures to
deter and prevent the unauthorized entrance into areas containing
cannabis or cannabis products and to deter and prevent the theft of
cannabis or cannabis products at the cannabis business. Except as
may otherwise be determined by the City Manager, these security measures
shall include, but shall not be limited to, all of the following:
1.
Perimeter
fencing and exterior lighting systems (including motion sensors) for
after-hours security as approved by the Director in collaboration
with the Sheriff's Department, as applicable.
2.
Preventing
individuals from remaining on the premises of the cannabis business
if they are not engaging in an activity directly related to the permitted
operations of the cannabis business; in cases in which the individual
will not voluntarily leave the premises in violation of applicable
law the cannabis employee shall contact the Sheriff's Department.
3.
Establishing
limited access areas accessible only to authorized cannabis business
personnel.
4.
Except
for limited amounts of cannabis or cannabis products being used for
display purposes in retail areas, all finished goods at a commercial
cannabis business shall be stored in a secured and locked vault or
vault-equivalent during non-operating hours. All safes and vaults
used to store cash and/or cannabis goods shall be compliant with Underwriters
Laboratories, LLC burglary-resistant and fire-resistant standards.
All cannabis and cannabis products, including live clone plants that
are being sold, shall be kept in a manner as to prevent diversion,
theft, and loss.
5.
Installing
24-hour security surveillance cameras of at least high-definition
(HD) quality to monitor all entrances and exits to and from the premises,
all interior spaces within the cannabis business which are open and
accessible to the public, all interior spaces where cannabis, cash,
or currency is being stored for any period of time on a regular basis,
and all interior spaces where diversion of cannabis could reasonably
occur. All cameras shall record in color. All exterior cameras shall
be in weather-proof enclosures, shall be located so as to minimize
the possibility of vandalism, and shall have the capability to automatically
switch to black and white in low light conditions. The cannabis business
shall be responsible for ensuring that the security surveillance camera's
footage is remotely accessible by the City Manager, and that it is
compatible with the City's software and hardware. In addition, if
required by City, remote and real-time live access to the video footage
from the cameras shall be provided to the Sheriff's Department at
the expense of the permittee. Video recordings shall be maintained
for a minimum of 120 days and shall be made available to the Sheriff's
Department upon request. Video shall be of sufficient quality for
effective prosecution of any crime found to have occurred on the site
of the cannabis business and shall be capable of enlargement via projection
or other means. Internet protocol address information shall be provided
to the Sheriff's Department by the cannabis business, to facilitate
remote monitoring of security cameras by the Sheriff's Department.
Each business shall have network security protocols that are certified
by Underwriters Laboratories, LLC.
6.
Sensors
shall be installed to detect entry and exit from all secure areas
and shall be monitored in real time by a security company licensed
by the State of California Bureau of Security and Investigative Services.
7.
Panic
buttons shall be installed in all cannabis businesses with direct
notification to the Sheriff's Department dispatch and shall be configured
to immediately alert dispatch for the Sheriff's Department.
8.
Having
a professionally installed, maintained, and monitored real-time alarm
system by a security company licensed by the State of California Bureau
of Security and Investigative Services.
9.
Any
security measures, such as bars, installed on the windows or the doors
of the cannabis business shall be installed only on the interior of
the building.
10.
Security personnel shall be on site 24 hours a day or alternative
security as authorized by the City Manager and must have a verified
response security patrol when closed. Security personnel must be licensed
by the State of California Bureau of Security and Investigative Services
and shall be subject to the prior review and approval of the City
Manager, with such approval not to be unreasonably withheld.
11.
Each cannabis business shall have the capability to remain secure
during a power outage and shall ensure that all access doors are not
solely controlled by an electronic access panel to ensure that locks
are not released during a power outage.
12.
Entrance areas are to remain under the control of a designated responsible
party that is either: (a) an employee of the cannabis business; or
(b) a licensed security professional.
13.
Each cannabis business shall have an accounting software system in
place to provide point-of-sale data as well as audit trails for both
product and cash, where applicable.
14.
Each cannabis business shall demonstrate to the City Manager compliance
with the State's track and trace system for cannabis and cannabis
products as soon as it is operational.
15.
Each cannabis business shall have a professionally installed video
surveillance system, access control and intrusion alarm systems designed
to protect the inventory, facility, and employees. Each business shall
have network security protocols that are certified by Underwriters
Laboratories, LLC.
16.
Exterior vegetation shall be planted, altered, and maintained in
a fashion that precludes its use as a hiding place for persons on
the premises.
17.
Emergency access and emergency evacuation plans that are in compliance
with State and local fire safety standards.
18.
Installation of "mosquitoes" (high-pitch frequency devices) as a
deterrent to vandalism/loitering.
B.
Each
cannabis business shall identify a designated security representative/liaison
to the City, who shall be reasonably available to meet with the City
Manager regarding any security related measures or operational issues.
The designated security representative/liaison shall, on behalf of
the cannabis business, annually maintain a copy of the current security
plan on the premises of the business, to present to the City Manager
upon request that meets the following requirements:
1.
Confirms
that a designated manager will be on duty during business hours and
will be responsible for monitoring the behavior of employees.
2.
Identifies
all managers of the cannabis business and their contact phone numbers.
3.
Confirms
that first aid supplies and operational fire extinguishers are located
in the service areas and the manager's office.
4.
Confirms
that burglar, fire, and panic alarms are operational and monitored
by a licensed security company 24 hours a day, seven days a week,
and provides contact information for each licensed security company.
5.
Identifies
a sufficient number of licensed, interior and exterior security personnel
who will monitor individuals inside and outside the cannabis business,
the parking lot, any adjacent property under the business's control,
and ensure that the parking lot is cleared of employees and their
vehicles one-half hour after closing.
C.
As part
of the application and permitting process each cannabis business shall
have a storage and transportation plan, which describes in detail
the procedures for safely and securely storing and transporting all
cannabis, cannabis products, any hazardous materials that may be used
by the business, and any currency.
D.
The
cannabis business shall cooperate with the City whenever the City
Manager makes a request, with or without prior notice, to inspect
or audit the effectiveness of any security plan or of any other requirement
of this chapter.
E.
A cannabis
business shall notify the City Manager within 24 hours after discovering
any of the following:
1.
Significant
discrepancies identified during inventory. The level of significance
shall be determined by the regulations promulgated by the City Manager.
2.
Diversion,
theft, loss, or any criminal activity involving the cannabis business
or any agent or employee of the cannabis business.
3.
The
loss or unauthorized alteration of records related to cannabis, customers
or employees or agents of the cannabis business.
4.
Any
other breach of security.
F.
Compliance
with the foregoing requirements shall be verified by the City Manager
prior to commencing business operations. Upon renewal, the City Manager
or Sheriff's Department may supplement these security requirements
once operations begin, subject to review by the City Manager if requested
by the business owner.
(Ord. 602 § 2, 2022)
A.
No person
may commence or continue any cannabis activity in the City, without
timely paying in full all fees and charges required for the operation
of a cannabis activity. Fees and charges associated with the operation
of a cannabis activity shall be established by resolution of the City
Council which may be amended from time to time, and shall be subject
to adjustment in accordance with the Consumer Price Index.
B.
All
cannabis businesses authorized to operate under this chapter shall
pay all sales, use, business and other applicable taxes, and all license,
registration, and other fees required under Federal, State, and local
law. Each cannabis business shall cooperate with City with respect
to any reasonable request to audit the cannabis business's books and
records for the purpose of verifying compliance with this section,
including, but not limited to, a verification of the amount of taxes
or fees required to be paid during any period.
C.
Prior
to operating in the City and as a condition of issuance of a cannabis
business permit, the operator of each cannabis facility shall enter
into an operational or community benefit agreement with the City setting
forth the terms and conditions under which the cannabis facility will
operate that are in addition to the requirements of this chapter,
including, but not limited to, public outreach and education, community
service, payment of fees and other charges as mutually agreed, and
such other terms and conditions that will protect and promote the
public health, safety, and welfare.
(Ord. 602 § 2, 2022)
A.
Cannabis
businesses may operate only during the hours specified in the cannabis
business permit issued by the City. No person under the age of 21
shall operate or be issued a permit for a cannabis business of any
kind.
B.
Restriction
on Sales and Consumption. Cannabis shall not be consumed by any person
on the premises of any cannabis business. No person shall cause or
permit the sale, dispensing, or consumption of alcoholic beverages
or tobacco on or about the premises of the cannabis business.
C.
No cannabis
or cannabis products or graphics depicting cannabis or cannabis products
shall be visible from the exterior of any property issued a cannabis
business permit, or on any of the vehicles owned or used as part of
the cannabis business. No outdoor storage of cannabis or cannabis
products is permitted at any time.
D.
Reporting
and Tracking of Product and of Gross Sales. Each cannabis business
shall have in place a point-of-sale or management inventory tracking
system to track and report on all aspects of the cannabis business,
including, but not limited to, such matters as cannabis tracking,
inventory data, gross sales (by weight and by sale), and other information
which may be deemed necessary by the City. The cannabis business shall
ensure that such information is compatible with the City's recordkeeping
systems. In addition, the system must have the capability to produce
historical transactional data for review. Furthermore, any system
selected must be approved and authorized by the City Manager prior
to being used by the permittee.
E.
All
cannabis and cannabis products sold, distributed, or manufactured
shall be cultivated, manufactured, and transported by licensed facilities
that maintain operations in full conformance with the State and local
regulations.
F.
Emergency
Contact. Each cannabis business shall provide the City Manager with
the name, telephone number (both land line and mobile, if available)
of an on-site employee or owner to whom emergency notice can be provided
at any hour of the day.
G.
Signage
and Notices.
1.
In addition to the requirements otherwise set forth in this section, business identification signage for a cannabis business shall conform to the requirements of Chapter 13.32 (Signs) of this code, including, but not limited to, seeking the issuance of a City sign permit, if applicable.
2.
No
signs placed on the premises of a cannabis business shall obstruct
any entrance or exit to the building or any window.
3.
Each
entrance to a cannabis business shall be visibly posted with a clear
and legible notice indicating that smoking, ingesting, vaping, or
otherwise consuming cannabis on the premises or in the areas adjacent
to the cannabis business is prohibited. The sign shall be no larger
than two feet by two feet.
4.
Business
identification signage shall be limited to that needed for identification
only and shall not contain any logos or information that identifies,
advertises, or lists the services or the products offered. No cannabis
business shall advertise by having a person holding a sign and advertising
the business to passersby, whether such person is on the premises
of the cannabis business or elsewhere, including, but not limited
to, the public right-of-way.
5.
Signage
shall not depict any image of cannabis or cannabis products. No permanent
banners, flags, temporary billboards, or other prohibited signs may
be used at any time.
H.
Minors.
1.
Persons
under the age of 21 years shall not be allowed on the premises of
a cannabis business and shall not be allowed to serve as a driver
for a mobile delivery service. It shall be unlawful and a violation
of this chapter for any person to employ any person at a cannabis
business who is not at least 21 years of age.
2.
Notwithstanding
subsection (H)(1) of this section, persons aged 18 to 20 years shall
be allowed on the premises of a cannabis business if they can produce
a valid physician's recommendation or a medical marijuana card issued
pursuant to Health and Safety Code Section 11362.71. In that event,
such persons can lawfully purchase cannabis for the sole purpose of
addressing the medical need that is the subject of the valid physician's
recommendation.
3.
The
entrance to the cannabis business shall be clearly and legibly posted
with a notice that no person under the age of 21 years of age is permitted
to enter upon the premises of the cannabis business.
I.
Odor
Control. Odor control devices and techniques shall be incorporated
in all cannabis businesses to ensure that odors from cannabis are
not detectable off site. Cannabis businesses shall provide a sufficient
odor absorbing ventilation and exhaust system so that odor generated
inside the cannabis business that is distinctive to its operation
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,
or within any other unit located inside the same building as the cannabis
business. As such, cannabis businesses must obtain a building permit
and install and maintain the following equipment, or any other equipment
which the Director determines is a more effective method or technology:
1.
An
exhaust air filtration system with odor control that prevents internal
odors from being emitted externally;
2.
An
air system that creates negative air pressure between the cannabis
business's interior and exterior, so that the odors generated inside
the cannabis business are not detectable on the outside of the cannabis
business.
J.
Display
of Permit and City Business License. The original copy of the cannabis
business permit issued by the City pursuant to this chapter and the
City-issued business license shall be posted inside the cannabis business
in a location readily visible to the public.
K.
Annual
Background Check. Pursuant to California Penal Code Sections 11105(b)(11)
and 13300(b)(11), which authorizes City authorities to access State
and local summary criminal history information for cannabis employment,
licensing, or certification purposes and authorizes access to Federal
level criminal history information by transmitting fingerprint images
and related information to the Department of Justice to be transmitted
to the Federal Bureau of Investigation, every person listed as an
owner, investor, manager, supervisor, employee, contract employee
or who otherwise works in a cannabis business must submit fingerprints
and other information deemed necessary by the Sheriff's Department,
Licensing Division for a background check by the Sheriff's Department.
Pursuant to California Penal Sections 11105(b)(11) and 13300(b)(11),
which requires that there be a requirement or exclusion from cannabis
employment, licensing or certification based on specific criminal
conduct on the part of the subject of the record, no person shall
be issued a permit to operate a cannabis business or be allowed to
work in a cannabis business unless they have first cleared the background
check, as determined by the Sheriff's Department as required by this
section. A fee for the cost of the background investigation, which
shall be the actual cost to the City to conduct the background investigation
as it deems necessary and appropriate, shall be paid at the time the
application for a cannabis business permit is submitted. Evidence
of a conviction of any of the offenses enumerated in Business and
Professions Code Section 26057(b)(4), absent a Certificate of Rehabilitation,
shall be grounds for immediate disqualification of the applicant.
L.
Loitering.
The owner and/or operator of a cannabis business shall prohibit loitering
by persons outside the facility both on the premises and within 100
feet of the premises. The cannabis business shall notify the Sheriff's
Department if anyone continues to loiter around the building or premises
in violation of applicable law after all reasonable action has been
taken to remove the individual(s) and the action has failed to do
so in a timely manner.
M.
Permits and Other Approvals. Prior to the establishment of any cannabis business or the operation of any such business, the person intending to establish a cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis business intends to establish and to operate pursuant to Section 7.04.290 and all applicable requirements in this chapter.
N.
Each
cannabis operator shall establish minimum training standards for all
employees. The City Manager shall have the discretion to require other
training for the business operations should the City identify deficiencies
or noncompliance issues with City or State requirements.
(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)
A.
No more
than the number of cannabis retailers adopted by City Council resolution
may operate within the City at any one time and shall be issued a
cannabis business permit by the City.
B.
Retailers
shall verify the age and all necessary documentation of each individual
to ensure the customer is not under the age of 18 years. If the potential
customer is 18 to 20 years old, retailer shall confirm the customer's
possession of a valid doctor's recommendation and/or Health and Safety
Code Section 11362.71 identification card (medical marijuana card).
For adult-use purchases, retailers shall verify that all customers
are 21 years of age or older for the purchase of cannabis or cannabis
products.
C.
Individuals
must show their government-issued identification, and, in the case
of medical cannabis facilities, their physician's recommendation,
or a cannabis card issued pursuant to Health and Safety Code Section
11362.71 in order to gain access into the retailer. The government-issued
identification and, if applicable, doctor's recommendation or cannabis
card must also be shown at the point-of-sale station at the time of
purchase. Doctor recommendations are not to be obtained or provided
at the retail location.
D.
Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. The security personnel shall be at least 21 years of age and shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. Security personnel may be allowed to carry firearms if authorized by Bureau of Security and Investigative Services.
E.
Retailers
may have only that quantity of cannabis and cannabis products to meet
the daily demand readily available for sale on site in the retail
sales area of the retailer. Additional product may be stored in a
secured, locked area to which customers, vendors, and visitors shall
not have access.
F.
All
restrooms used by the public shall remain locked and under the control
of management.
G.
Retailers
authorized to conduct retail activities shall only serve customers
who are within the licensed premises, or at a delivery address that
meets the requirements of this chapter.
1.
The
sale and delivery of cannabis goods shall not occur through a pass-through
window or a slide-out tray to the exterior of the premises.
2.
Retailers
shall not operate as or with a drive-in or drive-through at which
cannabis goods are sold to persons within or about a motor vehicle.
3.
No
cannabis goods shall be sold and/or delivered by any means or method
to any person within a motor vehicle.
4.
All
cannabis goods sold by a retail business shall be contained in child-resistant
packaging.
5.
Retailers
shall record point-of-sale areas and areas where cannabis goods are
displayed for sale on the video surveillance system. At each point-of-sale
location, camera placement must allow for the recording of the facial
features of any person purchasing or selling cannabis goods, or any
person in the retail area, with sufficient clarity to determine identity.
H.
Access
to Retailer Premises.
1.
Access
to the premises of a retail permittee shall be limited to individuals
who are at least 21 years of age.
2.
Notwithstanding
subsection (H)(1) of this section, individuals who are at least 18
years of age and in possession of a valid physician's recommendation
shall be granted access to the premises of a retail permittee for
the sole purpose of purchasing medicinal cannabis consistent with
the physician's recommendation.
I.
Authorized
Sales. A retailer shall only sell adult-use cannabis and adult-use
cannabis products to individuals who are at least 21 years of age.
A retailer shall only sell medicinal cannabis or medicinal cannabis
products to individuals who are at least 18 years of age, but not
yet 21, if those individuals are in possession of a valid physician's
recommendation. Medicinal cannabis sales to individuals 21 years of
age and older are unrestricted.
J.
Limited
Access Areas. A retailer shall establish limited-access areas and
permit only authorized individuals to enter the limited-access areas.
Authorized individuals include individuals employed by the retailer
as well as any outside vendors, contractors, or other individuals
conducting business that requires access to the limited access area.
All individuals granted access to the limited access area shall be
at least 21 years of age, and if not employed by the retailer, shall
be escorted at all times by an employee of the permittee. A retailer
shall maintain a log of all individuals who are not employees who
are granted access to the limited access area. These logs shall be
made available to the City Manager or the Sheriff's Department upon
request.
K.
Operating
hours of the store front retailer license shall be limited to the
hours of 9:00 a.m. through 9:00 p.m., seven days a week.
(Ord. 602 § 2, 2022)
A.
Retailers,
non-store front retailers (delivery), and microbusinesses owners and
operators are required to verify the age and the necessary documentation
of each customer. They must ensure that medical customers are at least
18 years of age and verify that the customer has a valid doctor's
recommendation. Doctor recommendations are not to be obtained or provided
at the retail location. In the case of adult-use customers, they must
verify that the customer is at least 21 years of age. Sales shall
only be made to persons matching this criteria.
B.
All
store front retailers, non-store front retailers (delivery), and microbusinesses
which conduct deliveries into or within the City of Santee shall be
required to obtain a permit from the City of Santee in order to conduct
retail sales regardless, if they are located in the City or another
local jurisdiction.
C.
Operating
hours of the non-store front retailer permittee or out of town retail
delivery services shall be limited to the hours of 9:00 a.m. through
9:00 p.m., seven days a week.
(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)
A.
A distributor
shall not store noncannabis products or noncannabis accessories that
are to be sold to another party on any licensed or permitted premises.
Additionally, a distributor shall not distribute noncannabis products
or noncannabis accessories at a licensed premises. For the purposes
of this section, noncannabis products are any goods that do not meet
the definition of cannabis goods as defined in Title 16, Division
42, Section 5000(c) of the California Code of Regulations.
B.
After
taking physical possession of a cannabis goods batch, the distributor
shall contact a testing laboratory and arrange for a laboratory employee
to come to the distributor's licensed premises to select a representative
sample for laboratory testing. The determination of which cannabis
goods are to be included in the sample for laboratory testing shall
be left to the sole discretion of the laboratory employee.
C.
A distributor
shall ensure that all cannabis goods batches are stored separately
and distinctly from other cannabis goods batches on the distributor's
premises.
D.
The
distributor shall ensure that the batch size from which the sample
is taken meets the requirements of State law, specifically the testing
provisions within the California Code of Regulations.
E.
A distributor
or an employee of the distributor shall be physically present to observe
the laboratory employee obtain the sample of cannabis goods for testing
and shall ensure that the increments are taken from throughout the
batch. The sampling shall be video-recorded, and the recording kept
available to the State and the City for a minimum of 180 days, pursuant
to Title 16, Division 42, Section 5305 of the California Code of Regulations.
F.
A distributor
shall not transport cannabis or cannabis products to a licensed retail
facility until and unless it has verified that the cannabis or cannabis
products have been tested and certified by a testing lab as being
in compliance with State health and safety requirements pursuant to
Title 16, Division 42, Sections 5705, 5710 and 5714 of the California
Code of Regulations.
(Ord. 602 § 2, 2022; Ord. 614, 3/13/2024)
A.
Testing
labs shall be required to conduct all testing in a manner pursuant
to Business and Professions Code Section 26100 and shall be subject
to State and local law. Each testing lab shall be subject to additional
regulations as determined from time to time as more regulations are
developed under this chapter and any subsequent State of California
legislation regarding the same.
B.
Testing
labs shall conduct all testing in a manner consistent with general
requirements for the competence of testing and calibrations activities,
including sampling using verified methods.
C.
All
cannabis testing laboratories performing testing shall obtain and
maintain ISO/IEC 17025 accreditation as required by the Bureau of
Cannabis Control.
D.
Testing
labs shall destroy any harvest batch whose testing sample indicates
noncompliance with health and safety standards required by the Bureau
unless remedial measures can bring the cannabis or cannabis products
into compliance with quality standards as specified by law and implemented
by the Bureau.
E.
Each
operator shall ensure that a testing laboratory employee takes the
sample of cannabis or cannabis products from the distributor's premises
for testing required by State law and that the testing laboratory
employee transports the sample to the testing laboratory.
F.
Except
as provided by State law, a testing laboratory shall not acquire or
receive cannabis or cannabis products except from a licensee in accordance
with State law, and shall not distribute, sell, or dispense cannabis,
or cannabis products, from the licensed premises from which the cannabis
or cannabis products were acquired or received. All transfer or transportation
shall be performed pursuant to a specified chain of custody protocol.
G.
A testing
laboratory may receive and test samples of cannabis or cannabis products
from a qualified patient or primary caregiver only if the qualified
patient or primary caregiver presents the qualified patient's valid
physician's recommendation for cannabis for medicinal purpose. A testing
lab shall not certify samples from a qualified patient or primary
caregiver for resale or transfer to another party or licensee. All
tests performed by a testing laboratory for a qualified patient or
primary caregiver shall be recorded with the name of the qualified
patient or primary caregiver and the amount of the cannabis or cannabis
products received.
(Ord. 602 § 2, 2022)
A.
Cannabis manufacturing shall only be permitted pursuant to Section 7.04.070 or any subsequent created manufacturing State license (but not a Type 7 volatile solvent manufacturing license) as defined in MAUCRSA and may be permitted to operate only within those zone districts as defined in the Santee Municipal Code. Cannabis manufacturing permitted under this chapter does not include the use of volatile solvents.
B.
Any
compressed gases used in the manufacturing process shall not be stored
on any property within the City in containers that exceeds the amount
which is approved by the Fire Department and authorized by the regulatory
permit. Each site or parcel subject to a cannabis business permit
shall be limited to a total number of tanks as authorized by the Fire
Department on the property at any time.
C.
Cannabis
manufacturing facilities may use heat, screens, presses, steam distillation,
ice water, ethanol, and other methods without employing solvents or
gases to create keef, hashish, bubble hash, or infused dairy butter,
or oils or fats derived from natural sources, and other extracts.
D.
If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in subsection F of this section. The CO2 must be of at least 99% purity.
E.
Closed
loop systems for compressed gas extraction systems must be commercially
manufactured and bear a permanently affixed and visible serial number.
F.
Certification
from an engineer licensed by the State of California, or by a certified
industrial hygienist, must be provided to the City for a professional
grade closed loop system used by any cannabis manufacturing manufacturer
to certify that the system was commercially manufactured, is safe
for its intended use, and was built to codes of recognized and generally
accepted good engineering practices, including, but not limited to:
G.
The
certification document must contain the signature and stamp of the
professional engineer or industrial hygienist and serial number of
the extraction unit being certified.
H.
Professional
closed loop systems, other equipment used, the extraction operation,
and facilities must be approved for their use by the Fire Department
and meet any required fire, safety, and building code requirements
specified in the California Building Reference Codes.
I.
Cannabis
manufacturing facilities may only use non-volatile solvents, including
carbon dioxide, ethanol, and nonhydrocarbon-based or other solvents
such as water, vegetable glycerin, vegetable oil, animal fat, and
glycerin to create or refine extracts. Ethanol should be removed from
the extract in a manner to recapture the solvent and ensure that it
is not vented into the atmosphere.
J.
Cannabis
manufacturing facilities creating cannabis extracts must develop standard
operating procedures, good manufacturing practices, and a training
plan prior to producing extracts for the marketplace.
K.
Any
person using solvents or gases in a closed looped system to create
cannabis extracts must be fully trained on how to use the system,
have direct access to applicable material safety data sheets to handle,
and store the solvents and gases safely.
L.
Parts
per million for one gram of finished extract cannot exceed State standards
for any residual solvent or gas when quality assurance tested.
(Ord. 602 § 2, 2022; Ord. 614, 3/13/2024)
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)
A.
In addition
to any regulations adopted by the City Council, the City Manager is
authorized to establish any additional rules, regulations and standards
governing the issuance, denial or renewal of cannabis business permits,
the ongoing operation of cannabis businesses and the City's oversight,
or concerning any other subject determined to be necessary to carry
out the purposes of this chapter.
B.
Regulations
shall be published on the City's website.
C.
Regulations
promulgated by the City Manager shall become effective upon date of
publication. Cannabis businesses shall be required to comply with
all State and local laws and regulations, including, but not limited
to, any rules, regulations or standards adopted by the City Manager.
(Ord. 602 § 2, 2022)
A.
Each
cannabis business shall provide the name, telephone number, and email
address of a community relations contact to whom notice of problems
associated with the cannabis business can be provided. Each cannabis
business shall also provide the above information to all businesses
and residences located within 100 feet of the cannabis business.
B.
During
the first year of operation pursuant to this chapter, the owner, manager,
and community relations representative from each cannabis business
holding a permit issued pursuant to this chapter shall attend meetings
with the City Manager, and other interested parties as deemed appropriate
by the City Manager, to discuss costs, benefits, and other community
issues arising as a result of implementation of this chapter. After
the first year of operation, the owner, manager, and community relations
representative from each such cannabis business shall meet with the
City Manager when and as requested by the City Manager.
C.
Cannabis
businesses to which a cannabis business permit is issued pursuant
to this chapter shall develop a City approved public outreach and
educational program for youth organizations and educational institutions
that outlines the risks of youth addiction to cannabis, and that identifies
resources available to youth related to drugs and drug addiction.
(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)
A.
The
enforcement officer may enter the location of a cannabis business
at any time, without notice, and inspect the location of any cannabis
business as well as any recordings and records required to be maintained
pursuant to this chapter or under applicable provisions of State law.
B.
It is
unlawful for any person having responsibility over the operation of
a cannabis business, to impede, obstruct, interfere with, or otherwise
not to allow the City to conduct an inspection, review or copy records,
recordings or other documents required to be maintained by a cannabis
business under this chapter or under State or local law. It is also
unlawful for a person to conceal, destroy, deface, damage, or falsify
any records, recordings or other documents required to be maintained
by a cannabis business under this chapter or under State or local
law.
C.
The
enforcement officer may enter the location of a cannabis business
at any time during the hours of operation and without notice to obtain
samples of the cannabis to test for public safety purposes. Any samples
obtained by the City shall be logged, recorded, and maintained in
accordance with established procedures by the City Manager or these
regulations.
(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)
A.
In addition to the enforcement and fines described herein, the City Attorney may bring a civil action for injunctive relief and civil penalties pursuant to Chapter 1.04 of this code against any owner who violates this chapter. In any civil action brought pursuant to this chapter, the court may award reasonable attorneys' fees and costs to the prevailing party.
B.
The
City may pursue any other legal remedy to enforce or collect any fines
or amounts owed as set forth herein.
(Ord. 602 § 2, 2022)
A.
For
purposes of this section, personal recreational use, possession, purchase,
transport, or dissemination of cannabis is considered unlawful in
all areas of the City to the extent it is unlawful under California
law.
B.
Outdoor
Cultivation. A person may not plant, cultivate, harvest, dry, or process
cannabis plants outdoors in any zoning district of the City. No use
permit, building permit, variance, or any other permit or entitlement,
whether administrative or discretionary, will be approved or issued
for any such use or activity.
C.
Indoor
Cultivation.
1.
A
person may not plant, cultivate, harvest, dry, or process cannabis
plants inside a private residence, or inside an accessory structure
to a private residence located upon the grounds of a private residence.
No use permit, building permit, variance, or any other permit or entitlement,
whether administrative or discretionary, will be approved or issued
for any such use or activity.
2.
To
the extent a complete prohibition on indoor cultivation inside a private
residence, or inside an accessory structure to a private residence
located upon the grounds of a private residence, is not permitted
under California law, a person may not plant, cultivate, harvest,
dry, or process cannabis plants inside a private residence, or inside
an accessory structure to a private residence located upon the grounds
of a private residence, in excess of the limitations imposed by Health
and Safety Code Section 11362.2.
3.
The
City Council may adopt, by later resolution, reasonable regulations
on indoor cultivation of cannabis pursuant to Health and Safety Code
Section 11362.2(b)(1).
(Ord. 602 § 2, 2022)
