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 and provide access to cannabis for medicinal purposes and implement the desire of California voters who approved the Adult Use of Marijuana Act ("AUMA") by Proposition 64 in November 2016, while imposing sensible 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 commercial cannabis activity in a responsible manner to protect the health, safety, and welfare of the residents of Lathrop and to enforce rules and regulations consistent with state law. Nothing in this chapter is intended to authorize the possession, use, or provision of cannabis for purposes that violate state or local law. The provisions of this chapter are in addition to any other permits, licenses and approvals which may be required to operate cannabis business in the city, such as conditional use permit issued pursuant to Title 17 of this code, and are in addition to any permits, licenses, and approval required under state, county, or other law.
(Ord. 18-387 § 1; Ord. 21-428 § 1)
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of MAU-CRSA, and any subsequent state legislation and/or regulations regarding same, the city of Lathrop is authorized to adopt ordinances that establish standards, requirements, and regulations regarding health and safety, 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 Lathrop to all commercial cannabis activity.
(Ord. 21-428 § 1)
"Business"
means a profession, trade, occupation, gainful activity, and all and any kind of calling whether or not carried on for profit.
"Cannabis"
means all parts of the plant 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 business"
means any business engaged in commercial cannabis activity. "Cannabis business" does not include any of the following:
1. 
A clinic pursuant to Chapter 1 of Division 2 of the Health and Safety Code.
2. 
A residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code.
3. 
A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code.
4. 
A residential hospice or a home health agency licensed pursuant to Chapter 8 and Chapter 8.5 of Division 2 of the Health and Safety Code.
5. 
The cultivation, delivery, or furnishing of cannabis by a qualified patient, a primary caregiver, or other person with identification card as defined by Section 11362.7 of Health and Safety Code provided such activity complies strictly with all applicable state law, including, but not limited to, Sections 11362.5 and 11362.765 of the Health and Safety Code.
"Cannabis cultivation business"
means any business that, pursuant to a Type 1, Type 1A, Type 1B, Type 1C, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, Type 5, Type 5A, Type 5B, or Type 12 state business license, or their successors, cultivates cannabis or cannabis products.
"Cannabis delivery"
means the commercial transfer of cannabis or cannabis products to a customer. "Cannabis delivery" also includes the use by a retailer of any technology platform.
"Cannabis delivery business"
means any cannabis business that, pursuant to a Type 10 state cannabis license, or its successors, delivers, makes available, or distributes cannabis and cannabis products to a consumer.
"Cannabis dispensary"
means any cannabis business where medicinal or adult-use cannabis or cannabis products are sold at retail, pursuant to a Type 10 state cannabis license, or its successors. A cannabis dispensary may include a cannabis business that provides cannabis deliveries.
"Cannabis distribution business"
means any business that, pursuant to Type 11 or Type 13 state cannabis license, or their successors, procures, sells, or transports cannabis and cannabis products between cannabis businesses.
"Cannabis for personal use"
means any use or possession of cannabis that does not require a license pursuant to Chapter 1 of Division 10 of the California Business and Professions Code.
"Cannabis manufacturing business"
means any cannabis business that, pursuant to Type 6, Type 7, or Type 12 state cannabis license, or their successors, manufactures cannabis or cannabis products.
"Cannabis product"
means cannabis or a product containing cannabis, including, but not limited to, manufactured cannabis, and shall have the same meaning as in Section 11018.1 of the California Health and Safety Code. For purposes of this chapter, "cannabis" does not include industrial hemp as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.
"Cannabis testing laboratory"
means a cannabis business that tests cannabis or cannabis products pursuant to a Type 8 state cannabis license, or its successors.
"City" or "city of Lathrop"
means the city of Lathrop, a California general law city.
"City council"
means the city council of the city of Lathrop.
"Commercial cannabis activity"
means any activity including cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, dispensaries, collectives, cooperatives and sale of cannabis or cannabis products that requires a state license.
"Commercial cannabis business" or "cannabis business"
means any business or operation which engages in medicinal or adult-use commercial cannabis activity.
"Commercial cannabis waste"
means cannabis plants and plant materials that are discarded by a cannabis business, including, but not limited to, extra vegetative plants, failed clones, and harvest waste.
"Cultivation"
means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Day care center"
means any licensed child care facility other than a small or large day care home, including infant centers and preschools.
"Department"
means the Department of Cannabis Control within the Department of Consumer Affairs, formerly named the Bureau of Cannabis Control, the Bureau of Marijuana Control, the Bureau of Medical Cannabis Regulation, and the Bureau of Medical Marijuana Regulation.
"Juvenile"
means any natural person who is under the age of 18 years.
"License"
means a state license issued pursuant to Business and Professions Code Section 26000.
"Manufacture"
means to compound, blend, extract, infuse or otherwise make or prepare a cannabis product.
"Medicinal cannabis" or "medicinal cannabis product"
means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the California Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician's recommendation. For the purposes of this chapter, the term "medicinal cannabis" is synonymous with medical cannabis.
"Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)"
means Senate Bill 94 contained in Division 10 of the California Business and Professions Code.
"Microbusiness"
means a commercial cannabis facility operating under a state Type 12 license, or a state cannabis license type subsequently established, and meeting the definition of microbusiness in Business and Professions Code Section 26070(a)(3)(A), as may be amended from time to time, which cultivates less than 10,000 square feet of cannabis and acts as a licensed distributor, Level 1 manufacturer, and retailer.
"Person"
means an 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 includes the plural as well as the singular number.
"Primary caregiver"
has the same meaning as that term is defined by Section 11362.7 of the Health and Safety Code.
"Qualified patient"
has the same meaning as that term is defined by Section 11362.7 of the Health and Safety Code.
"School"
means any public or private school providing instruction in kindergarten or grades 1—12, inclusive, but does not include any private school where education is primarily conducted in private homes.
"State"
means the state of California.
"State license"
means 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.
"Volatile solvent"
means volatile organic compounds, including, but not limited to: (1) explosive gases, such as Butane, Propane, Xylene, Styrene, Gasoline, Kerosene, O2 or H2; and (2) dangerous poisons, toxins, or carcinogens, such as Methanol, Methylene, Chloride, Acetone, Benzene, Toluene, and Tri-chloroethylene as determined by the fire marshal.
"Youth center"
means any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social teenage club facilities, video arcades, or similar amusement park facilities.
(Ord. 18-387 § 1; Ord. 21-428 § 1)
A. 
Any cannabis business allowed in the city shall obtain all of the following:
1. 
Development agreement;
2. 
Conditional use permit pursuant to Chapter 17.112 of this code;
3. 
Site Plan Review, if applicable, pursuant to Chapter 17.100 of this code;
4. 
City business license.
B. 
All cannabis businesses shall maintain compliance with Title 17 of this code.
C. 
A valid city and state license must be clearly posted in a conspicuous place within the permitted premises.
(Ord. 21-428 § 1)
A. 
The city manager, or designee(s), may design application forms and procedures specific to each permitted license type, including online permitting, and require inspections of proposed facilities before issuing a permit under this chapter. Such procedures may include a request for proposal (RFP) process for certain license types where deemed necessary.
B. 
Applications shall be reviewed by city staff or qualified consultants, as designated by the city manager for city council consideration. Such review may include a scoring or merit based system.
C. 
Applicants providing false or misleading information in the selection process will result in rejection of the application and/or nullification or revocation of any issued permit.
D. 
Applications shall require, at a minimum, the following:
1. 
All necessary information related to the business its operators, including names, birth dates, addresses, social security or tax identification numbers, all relevant criminal history, relevant work history, names of cannabis businesses owned or operated by the applicant within the last ten (l0) years, investor and/or partner information, and APN number of the parcel upon which the business will be located. Such private information will be exempt from disclosure to the public, pursuant to applicable law, to protect an individual's privacy interests and public health and safety.
2. 
Business plan.
3. 
Security plan as required under Section 5.26.100.
4. 
Site plan.
5. 
Floor plan.
6. 
Hazardous Materials Information. To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state, and local requirements for management of such substances. "Hazardous materials" includes any hazardous substance regulated by any federal, state, or local laws or regulations intended to protect human health or the environment from exposure to such substances.
7. 
Signed Affidavit. The property owner and applicant, if other than the property owner, shall sign the application and shall include affidavits agreeing to abide by and conform to the conditions of the permit and all provisions of the Lathrop Municipal Code pertaining to the establishment and operation of the commercial cannabis use, including, but not limited to, the provision of this chapter. The affidavit(s) shall acknowledge that the approval of the permit shall, in no way, permit activity contrary to the Lathrop Municipal Code, or any activity which is in violation of any applicable laws.
(Ord. 21-428 § 1)
A. 
Prior to operating in the city, and as a condition of issuance of any applicable permits, including, but not limited to, a business license, the applicant seeking to operate a cannabis business shall enter into a development agreement with the city setting forth the terms and conditions under which the cannabis business will operate. Such development agreement shall be in addition to the requirements of this chapter as mutually agreed upon that will protect and promote the public health, safety, and welfare of all persons in the city.
B. 
Every development agreement approved by the city pursuant to this chapter shall be subject to an annual review by the city council to determine compliance with the terms of the development agreement, applicable local and state laws and regulations, this chapter, and the Lathrop Municipal Code.
(Ord. 21-428 § 1)
A. 
The number of each type of cannabis business that shall be permitted to operate in the city at any one given time shall be as follows:
1. 
Cannabis cultivation business (indoor only)—Not permitted.
2. 
Cannabis delivery business (stand alone)—Not permitted.
3. 
Cannabis dispensary—A maximum of one cannabis dispensary.
4. 
Cannabis distribution business—Not permitted.
5. 
Cannabis manufacturing business—Not permitted.
6. 
Cannabis microbusiness—Not permitted.
7. 
Cannabis testing laboratory—Not permitted.
B. 
This section is only intended to create a maximum number of cannabis businesses that may operate in the city under each category.
(Ord. 21-428 § 1)
A. 
Cannabis business uses shall be located in compliance with Chapter 17.18 of this code.
B. 
No cannabis business shall be located within six hundred feet (600′) of a school, child day care center, or youth center, as measured from the nearest property lines.
C. 
No cannabis business shall be located within one thousand feet (1,000′) from the following roadways, as measured from the centerline of the street:
1. 
Spartan Way and Lathrop Road, between the intersection of Spartan Way/Stanford Crossing and Lathrop Road/Harlan Road.
2. 
Golden Valley Parkway, between the intersection of Golden Valley Parkway/Spartan Way and Golden Valley Parkway/River Islands Parkway.
(Ord. 21-428 § 1)
A. 
Cannabis dispensaries shall maintain all applicable state licenses and comply with all of the following:
1. 
The number of cannabis dispensaries permitted shall be pursuant to Section 5.26.070 and is subject to the requirements in Title 17 of this code.
2. 
Cannabis dispensaries shall only be allowed within fully enclosed buildings pursuant to Section 5.26.100(A). The maximum building size occupied by a cannabis dispensary shall not exceed 5,000 square feet.
3. 
Any commercial cannabis activity related to delivery shall maintain all applicable state licenses and locally required permits and licenses.
4. 
Tax Compliance. A cannabis dispensary shall maintain any applicable tax certificates and permits, and timely remit any taxes due to the appropriate government entity.
5. 
Insurance. A cannabis dispensary shall maintain certificates of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cannabis business.
6. 
Emergency Contact. A cannabis dispensary shall provide the city manager with the current name and primary and secondary telephone numbers of at least one twenty-four (24) hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the dispensary. The dispensary shall make good faith efforts to encourage neighborhood residents to call this person to solve operating problems, if any, before any calls or complaints are made to the city.
7. 
Required Signage. The following signs, in measurements of not less than eight by ten inches (8″x10″), shall be clearly and legibly posted in a conspicuous location inside the dispensary where they will be visible to customers in the normal course of a transaction, stating:
a. 
"The sale of cannabis without a state license and local permit is illegal."
b. 
"Smoking cannabis on this property, within twenty feet (20′) of the dispensary, or in any public place is illegal under California law."
c. 
For medical cannabis dispensaries: "No one under the age of 18 shall be allowed on the premises, unless they are a qualified patient or a primary care giver."
d. 
For nonmedical cannabis dispensaries: "No one under the age of 21 shall be allowed on the premises."
e. 
For all cannabis dispensaries: "This business is under surveillance accessible by Lathrop Police."
(Ord. 21-428 § 1)
The following standards and regulations apply to all commercial cannabis uses:
A. 
Building Requirements. All structures used in commercial cannabis uses shall be located in structures designated for that occupancy and shall comply with all applicable sections of the Lathrop Municipal Code. Commercial cannabis uses that provide access to the public including, but not limited to, employees, vendors, contractors, business partners, members, customers, or patients shall meet Lathrop Municipal Code and state requirements for accessibility including accessible parking, accessible path of travel, restrooms, and washing facilities.
B. 
Emissions Control. All commercial cannabis uses shall utilize appropriate measures in construction and, where applicable, operations to prevent the emissions of dust, smoke, noxious gases, or other substances that have the potential to impact local or regional air quality.
C. 
Hours of Operation. The maximum hours of operation for a commercial cannabis use shall be established by the conditional use permit and development agreement issued by the city, provided that the hours shall not exceed the maximum hours of operation allowed under state law.
D. 
Odor Control and Ventilation. Commercial cannabis uses shall comply with all current and future state law and regulations related to odor control and ventilation, in addition to any specific requirements for the particular use established in this chapter. No commercial cannabis use may operate in a manner whereby cannabis odors are detectable from adjacent and nearby properties. All commercial cannabis uses must install a ventilation system that adequately controls for odor, humidity, and mold. Conditions of approval may include a schedule related to changing filters.
E. 
Lighting. All lighting shall be fully shielded, downward casting and not spill over onto structures, other properties or the night sky.
F. 
Police Notification. A cannabis dispensary shall notify the chief of police or designee(s) within 24 hours after discovery of any of the following:
1. 
Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the city.
2. 
Diversion, theft, loss, or any criminal activity involving the commercial 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.
G. 
Security Plan. Security plan, including, but not limited to, the following information:
1. 
Security Surveillance Cameras. Security surveillance cameras and a video recording system shall be installed to monitor all doors into the buildings on the business site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights-of-way. The cameras and recording system shall be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the business site. The recording system shall be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.
2. 
Security Video Retention. Video from the security surveillance cameras shall be recorded at all times (24 hours a day, seven days a week) and the recording shall be maintained for at least 90 days. The video recording shall be made available to the city upon request.
3. 
Alarm System. Professionally and centrally-monitored fire, robbery, and burglar alarm systems shall be installed and maintained in good working condition. The alarm system shall include a private security company that is required to respond to every alarm.
H. 
Waste Management Plan. A cannabis dispensary shall submit and comply with an approved commercial cannabis waste management plan describing how commercial cannabis waste will be disposed.
I. 
Weights and Measures. All scales used for commercial transactions shall be registered for commercial use and sealed by the Department of Agriculture/Weights and Measures.
J. 
Tracking. Commercial cannabis operators shall comply with any track and trace program established by state agencies. Commercial cannabis operators must maintain records tracking all cannabis production and products and shall make all records related to commercial cannabis activity available to the city upon request. Commercial cannabis operators shall comply with a county track and trace system if one is adopted by the county.
K. 
Restrictions on Alcohol Sales and Consumption. No alcoholic beverages may be sold, dispensed, or consumed on or about the premises of any commercial cannabis business.
(Ord. 21-428 § 1)
Commercial cannabis uses shall not create a public nuisance or adversely affect the health or safety of the nearby residents or businesses by creating dust, light, glare, heat, noise, noxious gasses, odor, smoke, traffic, vibration, unsafe conditions or other impacts, or be hazardous due to the use or storage of materials, processes, products, runoff or wastes.
(Ord. 21-428 § 1)
Commercial cannabis uses shall comply with additional taxes that may be enacted by the voters or any additional regulations that may be promulgated in addition to all current applicable state and local taxes.
(Ord. 21-428 § 1)
A. 
All employees of commercial cannabis businesses must be at least 21 years of age.
B. 
All employees of commercial cannabis business may be subject to background search by the California Department of Justice and local law enforcement. Permits for commercial cannabis uses may not be permitted for operators with felony convictions, as specified in subdivision (c) of Section 667.5 of the Penal Code, and subdivision (c) of Section 1192.7 of the Penal Code. Permits for commercial cannabis uses may not be permitted for operators with criminal convictions that substantially relate to the qualifications, functions, or duties of the business or profession, including a felony conviction involving fraud, deceit, or embezzlement or a criminal conviction for the sale or provision of illegal controlled substances to a minor.
C. 
Each owner or operator of a commercial cannabis business shall maintain on site a current register of all the employees currently employed by the commercial cannabis business, and shall produce such register to the chief of police, designee, or any other city official authorized to enforce the Lathrop Municipal Code for purposes of determining compliance with this chapter.
D. 
The chief of police is authorized to implement an employee permit system, whereby any employee or volunteer of a commercial cannabis business, must obtain a work permit from the city of Lathrop.
1. 
At a minimum, such program shall require the issuance of a permit that must be visibly displayed at all times by the employee or volunteer when he or she is working and contains a recent photograph of the individual and the name of the commercial cannabis business where he or she works or volunteers.
2. 
The chief of police may establish a fee for the cost of issuing such a permit.
(Ord. 21-428 § 1)
The person to whom a 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 of Lathrop, whether committed by the permittee or any employee, volunteer, or agent of the permittee, which violations occur in or about the premises of the cannabis business, and violations which occur during deliveries to off-site locations, whether or not said violations occur within the permit holder's presence.
(Ord. 21-428 § 1)
A. 
The city manager or designee(s), chief of police or designee(s), and fire chief or designee(s) charged with enforcing the provisions of the Lathrop Municipal Code, or any provision thereof, may enter the location of a cannabis business during normal business hours, 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.
(Ord. 21-428 § 1)
Each and every violation of this chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by this code. Additionally, as a nuisance per se, any violation of this chapter shall be subject to injunctive relief, and any permit issued pursuant to this chapter shall be deemed null and void, entitling the city to disgorgement and payment to the city of any monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or in equity, including the imposition of a civil penalty not to exceed $1,000 for each day, or part thereof, such violation or failure to comply occurs. The city of Lathrop may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the cannabis business or persons related to, or associated with, the commercial cannabis activity. Additionally, when there is determined to be an imminent threat to public health, safety or welfare, the police chief or designee(s), may take immediate action to temporarily suspend a cannabis business permit issued by the city, pending a hearing before the city council.
(Ord. 21-428 § 1)
Each and every violation of the provisions of this chapter may be prosecuted as a misdemeanor at the discretion of the city attorney and upon conviction be subject to a fine not to exceed $1,000 or imprisonment in the County Jail for a period of not more than six months, or by both such fine and imprisonment. Each day a violation is committed or permitted to continue shall constitute a separate offense.
(Ord. 21-428 § 1)
All notices required by this chapter are deemed issued and served upon the date they are either deposited in the United States mail, postage pre-paid, addressed to the applicant or cannabis business at the mailing address identified in its application, the last updated address on file with the city manager's office, or the mailing address on the appeal form; or the date upon which personal service of the notice is provided to the applicant or a manager identified on the application or appeal form.
(Ord. 21-428 § 1)