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
and provide access to cannabis for medicinal purposes as recommended
by their health care provider(s), and to provide access to adult-use
of cannabis for persons over the age of 21 as authorized by the Control,
Tax & Regulate the Adult Use Cannabis Act ("AUMA" or "Proposition
64" passed by California voters in 2016), while imposing reasonable
regulations on the use of land to protect the City's residents, neighborhoods,
and businesses from disproportionately negative impacts. As such,
it is the purpose and intent of this chapter to regulate the cultivation,
processing, manufacturing, testing, sale, delivery, distribution and
transportation of medicinal and adult-use cannabis and cannabis products
in a responsible manner to protect the health, safety, and welfare
of the residents of Santa Barbara and to enforce rules and regulations
consistent with state law. It is the further purpose of intent of
this chapter to require all commercial cannabis businesses to obtain
and renew annually a permit to operate within Santa Barbara. Nothing
in this chapter is intended to authorize the possession, use, or provision
of cannabis for purposes that violate state or federal law. The provisions
of this chapter are in addition to any other permits, licenses and
approvals which may be required to conduct business in the City, and
are in addition to any permits, licenses and approval required under
state, county, or other law.
(Ord. 5813, 2017)
Pursuant to Sections 5 and 7 of Article XI of the California
Constitution, the provisions of MAUCRSA, any subsequent state legislation
and/or regulations regarding same, the City of Santa Barbara 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 of Santa Barbara to
all commercial cannabis activity.
(Ord. 5813, 2017)
Except as specifically authorized in this chapter or Section
30.185.250, th
e commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation (other than as provided under California
Business & Professions Code Section 26090(e)), of cannabis or cannabis products is expressly prohibited in the City of Santa Barbara.
(Ord. 5813, 2017)
Nothing in this chapter shall be construed as authorizing any
actions that violate federal, state, or local law with respect to
the operation of a commercial cannabis business. It shall be the responsibility
of the Permittees and Responsible Persons of a commercial cannabis
business to ensure that a commercial cannabis business is, at all
times, operating in a manner compliant with all applicable federal,
state and local laws, including for as long as applicable, all state
cannabis laws, any subsequently enacted state law or regulatory, licensing,
or certification standards or requirements, and any specific, additional
operating procedures or requirements which may be imposed as conditions
of approval of the commercial cannabis business permit.
(Ord. 5813, 2017)
When used in this chapter, the following words shall have the
meanings ascribed to them as set forth herein. Any reference to California
statutes includes any regulations promulgated thereunder, and is deemed
to include any successor or amended version of the referenced statute
or regulatory provision.
A-License.
A license issued by the State of California under MAUCRSA
for cannabis or cannabis products that are intended for adults 21
years of age and over and who do not possess physician's recommendations.
Applicant.
Applicant shall include any individual or entity applying
for a permit under this chapter, including any officer, director,
partner, or other duly authorized representative applying on behalf
of an entity.
Business License Certificate.
The certificate issued by the City's Treasury Division after payment of the business tax fee as set forth in Chapter
5.04 of the City of Santa Barbara Municipal Code.
Cannabis.
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 division, "cannabis"
does not mean "industrial hemp" as defined by Section 11018.5 of the
California
Health and Safety Code.
Cannabis Concentrate.
Cannabis that has undergone a process to concentrate one
or more active cannabinoids, thereby increasing the product's potency.
Resin from granular trichomes from a cannabis plant is a concentrate
for purposes of this division. A cannabis concentrate is not considered
food, as defined by Section 109935 of the
Health and Safety Code,
or drug, as defined by Section 109925 of the
Health and Safety Code.
Cannabis Products.
Cannabis that has undergone a process whereby the plant material
has been transformed into a concentrate, including, but not limited
to, concentrated cannabis, or an edible or topical product containing
cannabis or concentrated cannabis and other ingredients.
Canopy.
All areas occupied by any portion of a cannabis plant, inclusive
of all vertical planes, whether contiguous or noncontiguous on any
one site.
Chief of Police.
The Chief of the Santa Barbara Police Department, or his/her
designee.
City.
The City of Santa Barbara, California.
City Administrator.
City Administrator of the City of Santa Barbara, including
his or her designee.
Code.
The City of Santa Barbara Municipal Code.
Commercial Cannabis Activity.
Activities that include the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging,
labeling, transportation, delivery, dispensing, or retail sale of
cannabis and cannabis products as provided for in MAUCRSA.
Commercial Cannabis Business Permit.
The regulatory permit issued by the City of Santa Barbara
pursuant to this chapter to a commercial cannabis business, which
is required before any commercial cannabis activity may legally be
conducted in the City. The initial permit and annual renewal of a
commercial cannabis business permit is made expressly contingent upon
the business' ongoing compliance with all requirements of state law,
this chapter, the Santa Barbara Municipal Code, and any regulations
adopted by the City governing the commercial cannabis activity at
issue.
Cultivation.
Any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis.
Cultivation Site.
A location where cannabis is planted, grown, harvested, dried,
cured, graded, or trimmed, or a location where any combination of
those activities occurs.
Customer.
A natural person 21 year of age; or, a natural person 18
years of age or older who possesses a physician's recommendation.
Delivery.
The mobile commercial transfer of cannabis or cannabis products
to a customer. Delivery also includes the use by a retailer of any
technology platform owned and controlled by the retailer.
Dispensing.
Any activity involving the retail sale of cannabis or cannabis
products from a retailer.
Distribution.
The procurement, sale, and transport of cannabis and cannabis
products between licensees.
Distributor.
A person holding a valid commercial cannabis business permit
for distribution issued by the City of Santa Barbara, and, a valid
state license for distribution, required by state law to engage in
the business of purchasing cannabis from a licensed cultivator, or
cannabis products from a license manufacturer, for sale to a licensed
retailer.
Edible Cannabis Product.
Cannabis product that is intended to be used, in whole or
in part, for human consumption, and is not considered food. Edible
cannabis product has the same meaning as Business and Professions
Code Section 26001.
Fire Chief.
The Chief of the Santa Barbara Fire Department, or his/her
designee.
Gross Receipts.
Means the gross receipts of the preceding calendar year or
part thereof or such other fiscal year approved by the administrator,
and is defined as follows:
The total amount actually received or receivable from all sales;
the total amount of compensation actually received or receivable for
the performance of any act or service, of whatever nature it may be,
for which a charge is made or credit allowed, whether or not such
act or service is done as part of or in connection with the sale of
materials, goods, wares or merchandise; and gains realized from trading
in stocks or bonds, interest discounts, rents, royalties, fees, commissions,
dividends, however designated. Included in "gross receipts" shall
be all receipts, cash, credits and property of any kind or nature,
including the fair market value of samples or withdrawals from inventory
for personal use or consumption by the Permittee or any employee thereof,
without any deduction therefrom on account of the cost of the property
sold, the cost of materials used, labor or service costs, interest
paid or payable, or losses or other expenses whatsoever, except that
the following shall be excluded therefrom:
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1.
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Cash discounts allowed and taken on sales.
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2.
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Credit allowed on property accepted as part of the purchase
price and which property may later be sold, at which time the sales
price shall be included as "gross receipts".
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3.
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Any tax required by law to be included in or added to the purchase
price and collected from the consumer or purchaser (e.g. sales tax).
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4.
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Any part of the sale price of property returned by purchasers
to the seller as refunded by the seller by way of cash or credit allowances
or return of refundable deposits previously included in gross receipts.
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5.
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Receipts of refundable deposits, except that such deposits when
forfeited and taken into income of the business shall not be excluded.
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6.
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Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the administrator with the names and addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustee. (This definition supplements and is in addition to the definitions found in any provision of the City's Code, including, without limitation, Section 5.42.090. In the event of any conflict between this section and Section 5.42.090 shall prevail.)
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License or State License.
A permit or license issued by the State of California, or
one of its departments or divisions, under MAUCRSA and any subsequent
State of California legislation regarding the same, to engage in commercial
cannabis activity.
Licensee.
Any person holding a license issued by the State of California
to conduct commercial cannabis business activities.
Live Plants.
Living cannabis flowers and plants including seeds, immature
plants, and vegetative stage plants.
Manager.
Any person(s) designated by the commercial cannabis business
to act as the representative or agent of the commercial cannabis business
in managing day-to-day operations with corresponding liabilities and
responsibilities, and/or the person in apparent charge of the premises
where the commercial cannabis business is located. Evidence of management
includes, but is not limited to, evidence that the individual has
the power to direct, supervise, or hire and dismiss employees, control
hours of operations, create policy rules, or purchase supplies.
Manufacture.
To compound, blend, extract, infuse, or otherwise make or
prepare a cannabis product.
Manufactured Cannabis.
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.
Manufacturer.
A licensee that conducts the production, preparation, propagation,
or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of
chemical synthesis, or by a combination of extraction and chemical
synthesis at a fixed location that packages or repackages cannabis
or cannabis products. A manufacturer may also be a person that infuses
cannabis in its products but does not perform its own extraction.
Manufacturing Site.
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 commercial cannabis business permit for manufacturing
from the City of Santa Barbara and, a valid state license as required
for manufacturing of cannabis products.
Medicinal Cannabis or Medicinal Cannabis Products.
Cannabis or a cannabis product, respectively, intended to
be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition
215) or the Medical Marijuana Program Act of 2003, found at Sections
11362.5 and 11362.71 et seq. of the
Health and Safety Code, by a medicinal
cannabis patient in California who possesses a valid and current identification
card issued by a California licensed physician's recommendation.
M-License.
A license issued by the state of California under MAUCRSA
for commercial cannabis activity involving medicinal cannabis.
Owner.
Any of the following:
1.
A person with an aggregate ownership interest of 10% or more
in the person applying for a Santa Barbara commercial cannabis business
permit, whether a partner, shareholder, member, or the like, unless
the interest is solely a security, lien, or encumbrance.
2.
The chief executive officer of a nonprofit or other entity.
3.
A member of the board of directors of a nonprofit.
Permittee.
Any person to whom a current and valid City-issued commercial
cannabis business permit has been issued.
Person.
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, and the plural as well as the singular.
Premises.
The designated structure or structures and land specified
in the application that is owned, leased, or otherwise held under
the control of the applicant where the commercial cannabis activity
will be or is conducted. The premises shall be a contiguous area and
shall only be occupied by one Permittee.
Purchaser.
The customer who is engaged in a transaction with a Permittee
for purposes of obtaining cannabis or cannabis products.
Responsible Person.
All owners and operators of a commercial cannabis business,
including the Permittee and all officers, directors, managers, or
partners, and all persons with authority, including apparent authority,
over the premises of the commercial cannabis business.
Retailer-Storefront.
A commercial cannabis business facility where cannabis, cannabis
products, or devices for the use of cannabis or cannabis products
are offered, either individually or in any combination, for retail
sale to customers at a fixed location, including an establishment
that also offers delivery of cannabis and cannabis products as part
of a retail sale, and where the operator holds a valid commercial
cannabis business permit from the City of Santa Barbara authorizing
the operation of a retailer, and a valid state license as required
by state law to operate a retailer.
Retailer-Delivery Only.
A commercial cannabis business facility where cannabis, cannabis
products, or devices for the use of cannabis or cannabis products
are offered, either individually or in any combination, for retail
sale to customers, where the premises are closed to the public and
sales are conducted exclusively by delivery, where a vehicle is used
to convey the cannabis or cannabis products to the customer from a
fixed location, and where the operator holds a valid commercial cannabis
business permit from the City of Santa Barbara authorizing the operation
of a retailer, and a valid state license as required by state law
to operate a retailer.
Sell, Sale, Retail Sale, and To Sell.
Includes any transaction whereby, for any consideration or
gross receipt, whether actual or intangible, title to cannabis or
cannabis products are transferred from one person to another, the
delivery of cannabis or cannabis products pursuant to an order placed
for the purchase of the same and soliciting or receiving an order
for the same, the providing of samples of cannabis and cannabis products
to persons, and also includes the withdrawal for personal use or consumption
of cannabis or cannabis products from inventory by the Permittee or
any employee thereof, but does not include the return of cannabis
or cannabis products by a licensee to the licensee from whom the cannabis
or cannabis product was purchased.
State Cannabis Laws.
Laws of the State of California, which include California
Health and Safety Code Sections 11362.1 through 11362.45; California
Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996);
California
Health and Safety Code Sections 11362.7 to 11362.83 (Medical
Marijuana Program); California
Health and Safety Code Sections 26000
through 26211 (Medicinal and Adult-Use Cannabis Regulation and Safety
Act ("MAUCRSA")); California
Health and Safety Code Sections 26220
through 26231.2; the California Attorney General's Guidelines for
the Security and Non-Diversion of Marijuana Grown for Medical Use
issued in August, 2008, as such guidelines may be revised from time
to time by action of the Attorney General; California
Labor Code Section
147.5; California
Revenue and Taxation Code Sections 31020 and 34010
through 34021.5; California
Fish and Game Code Section 12029; California
Water Code Section 13276; all state regulations adopted pursuant to
MAUCRSA; and all other applicable laws of the State of California.
Testing Laboratory.
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.
2.
Licensed by the State of California.
Topical Cannabis.
A product intended for external application and/or absorption
through the skin. A topical cannabis product is not considered a drug
as defined by Section 109925 of the California
Health and Safety Code.
Transport.
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 commercial cannabis activity
authorized by MAUCRSA which may be amended or repealed by any subsequent
State of California legislation regarding the same.
Youth Center.
The same meaning as in Section 11353.1 of the Health and
Safety Code.
(Ord. 5813, 2017)
No person may engage in any commercial cannabis business or
in any commercial cannabis activity within the City of Santa Barbara
including cultivation, manufacture, processing, laboratory testing,
transporting, dispensing, distribution, or sale of cannabis or a cannabis
product unless the person (1) has a valid commercial cannabis business
permit from the City of Santa Barbara; (2) has a valid State of California
Seller's Permit; and (3) is currently in compliance with all applicable
state and local laws and regulations pertaining to the commercial
cannabis business and commercial cannabis activities, including the
duty to obtain any required state licenses.
(Ord. 5813, 2017)
The number of each type of commercial cannabis business that
shall be permitted to operate in the City shall be established by
resolution of the City Council.
A. This
section is only intended to create a maximum number of commercial
cannabis businesses that may be issued permits to operate in the City
under each category. Nothing in this chapter creates a mandate that
the City must issue any or all of the commercial cannabis business
permits if it is determined that it is in the best interest of the
City to not issue the maximum number, or any number of permits, or
if the applicants do not meet the standards which are established
in the application requirements or further amendments to the application
process.
B. Each
year following the initial award of permits, if any, or at any time
in the City Council's discretion, the City Council may reassess the
number of commercial cannabis business permits which are authorized
for issuance. The City Council, in its discretion, may determine by
resolution that the number of commercial cannabis permits should stay
the same, be reduced, or be expanded.
(Ord. 5813, 2017)
Each commercial cannabis business permit issued pursuant to this chapter shall expire 12 months after the date of its issuance. Commercial cannabis business permits may be renewed as provided in Section
9.44.120.
(Ord. 5813, 2017)
No Permittee shall change the location of the commercial cannabis
business specified in the commercial cannabis business permit until
any such change of location is approved by the City Administrator.
Within 90 days of the effective date of this chapter, the City Administrator
shall adopt a process (to include any necessary forms and procedures)
for the relocation of commercial cannabis businesses that includes
the following:
A. The
Permittee shall submit a change of location application to the City
at least 60 days prior to the proposed change.
B. The proposed location shall meet all the requirements under this code, including, but not limited to, this chapter and Title
30.
C. The proposed location shall be reviewed and evaluated using review criteria as referenced in Section
9.44.090.
D. The
relocation of a Permittee's commercial cannabis business shall be
subject to the prior review and approval by the City Administrator
at a public meeting.
E. No later
than 10 days prior to the public meeting, notice of the proposed location
for the relocation of any commercial cannabis business will be sent
to all property owners and occupants located within 300 feet of the
proposed premises.
(Ord. 5813, 2017)
Prior to commencing operations, a Permittee of a commercial
cannabis business shall obtain a City of Santa Barbara business tax
certificate.
(Ord. 5813, 2017)
Prior to commencing operations, a commercial cannabis business
shall be subject to a mandatory inspection of the premises, and must
obtain all required building permits and approvals which would otherwise
be required for any business of the same size and intensity operating
in that zone. The Permittee shall also obtain all required Building
Safety Division approvals, Fire Department approvals, Health Department
approvals and any other permit or approval required by this code or
applicable law.
(Ord. 5813, 2017)
To the fullest extent permitted by law, the City of Santa Barbara
shall not assume any liability whatsoever with respect to having issued
a commercial cannabis business permit pursuant to this chapter or
otherwise approving the operation of any commercial cannabis business.
As a condition to the approval of any commercial cannabis business
permit, the applicant shall be required to meet all of the following
conditions before they can receive the commercial cannabis business
permit:
A. They
must execute an agreement, in a form approved by the City Attorney,
agreeing to indemnify, defend (at applicant's sole cost and expense),
and hold harmless the City of Santa Barbara, and its officers, officials,
employees, representatives, and agents 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 commercial cannabis
business permit, the City's decision to approve the operation of the
commercial cannabis business or activity, to process used by the City
in making its decision, or the alleged violation of any federal, state
or local laws by the commercial cannabis business or any of its officers,
employees or agents.
B. Maintain
insurance at coverage limits, and with conditions thereon determined
necessary and appropriate from time to time by the City's Risk Manager.
C. Reimburse
the City of Santa Barbara for all costs and expenses including, but
not limited to, attorney fees and costs and court costs which the
City of Santa Barbara may be required to pay as a result of any legal
challenge related to the City's approval of the applicant's commercial
cannabis business permit, or related to the City's approval of the
applicant's commercial cannabis activity. The City of Santa Barbara
may, at its sole discretion, participate at its own expense in the
defense of any such action, but such participation shall not relieve
any of the obligations imposed hereunder.
(Ord. 5813, 2017)
No person shall cause or permit the sale, dispensing, or consumption
of alcoholic beverages or tobacco products on or about the premises
of a commercial cannabis business.
(Ord. 5813, 2017)
The amount of any fee, cost or charge imposed pursuant to this
chapter shall be deemed a debt to the City of Santa Barbara that is
recoverable in any manner authorized by this code, state law, or in
any court of competent jurisdiction.
(Ord. 5813, 2017)
Permittees and their Responsible Persons and Managers shall
be responsible for violations of the laws of the State of California
or of the City of Santa Barbara Municipal Code, whether committed
by the Permittee, or any employee or agent of the Permittee, which
violations occur on the premises of the commercial cannabis business
whether or not said violations occur within the permit holder's presence.
Any act or omission of any employee constituting a violation of the
provisions of this chapter shall be deemed the act or omission of
the Permittee for purposes of determining whether the permit shall
be revoked, suspended, or not renewed.
(Ord. 5813, 2017)
With the exception of medical marijuana storefront commercial cannabis business permits issued pursuant to Section
30.185.250 of this code, the provisions of this chapter shall control regulation of commercial cannabis businesses as defined herein if other provisions of the code conflict therewith. This chapter shall not, however, relieve any person of his or her duty to comply with such laws if additional obligations, duties, or prohibitions are imposed thereby.
(Ord. 5813, 2017)