means a person or organization who has registered with the
City of Encinitas, per the process outlined by this chapter and developed
by staff, in order to obtain a business license for a cannabis business.
means the commercial cultivation, possession, manufacture,
distribution, processing, storing, packaging, labeling, transportation,
delivery or sale of cannabis or cannabis products.
means any person lawfully engaged in a commercial cannabis
activity as set forth by the California Business and Professions Code,
Division 10, and state rules and regulations implementing those laws.
means the classification of "cannabis business" that a person
is pursuing in the City of Encinitas. For the purposes of this chapter,
the cannabis business types are: retail, cultivation, product manufacturing,
cannabis kitchen, and distribution.
means cannabis that has undergone a process to concentrate
one or more active cannabinoids, thereby increasing the product's
potency, as defined by Section 26001 of the California Business and
Professions Code.
means a premises where edible cannabis products are produced
by a manufacturer.
as defined by Section 26001 of the California Business and
Professions Code.
is defined to mean a California state commercial marijuana
license classification for cultivation in California Business and
Professions Code section 26050, subdivision (a).
as defined by Section 26001 of the California Business and
Professions Code.
is the organization or entity holding the business license
for cultivation.
as defined by Section 11018.1 of the California Health and
Safety Code.
as defined by Section 1596.76 of the California Health and
Safety Code, properly licensed and zoned in the City of Encinitas,
and actively operating and providing childcare to children under the
age of 18.
as defined by Section 26001 of the California Business and
Professions Code.
is the organization or entity engaging in wholesale distribution
of cannabis in compliance with the regulations for a State Cultivation
License Type 11 (Distributor), defined in California Business and
Professions Code section 26050, subdivision (a)(19).
is defined to mean a physical premises where cannabis and
cannabis products are distributed by a distributor.
means cannabis product that is intended to be used, in whole
or in part, for human consumption, as defined by Section 26001 of
the California Business and Professions Code.
means the production of edible cannabis products by a manufacturer.
means a fiber or oilseed crop, or both, that is limited to
types of the plant Cannabis sativa L. having no more than three-tenths
of one percent tetrahydrocannabinol (THC) contained in the dried flowering
tops, whether growing or not; the seeds of the plant; the resin extracted
from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds or resin
produced therefrom.
as defined by Section 26001 of the California Business and
Professions Code.
means a person with an aggregate ownership interest, direct
or indirect, of 20% or more in a commercial cannabis business, whether
a partner, shareholder, member, or the like, including any security,
lien, or encumbrance in an ownership interest that, upon default,
could become an ownership interest of 20% or more in a commercial
cannabis business.
is the designated area at a indoor or mixed-light cultivation
site that will contain mature plants, defined as cannabis plants that
are flowering. For nursery cultivation, plant canopy shall mean the
designated area that will contain seeds, clones, and immature plants,
defined as plants that are not flowering.
means any outdoor grounds, owned or operated by the City,
that contains any play or athletic equipment primarily used, or primarily
intended to be used by, any person less than 18 years old.
means that if there exists multiple conflicting applicants
who register to obtain a cannabis businesses of the same type, during
the registration period, where the granting of a business license
to one applicant would preclude another applicant from being granted
a business license, the applicant who meets the criteria for preference
who has submitted their initial application shall be considered for
a business license prior to other applicants to whom granting a business
license would conflict with their ability to obtain a business license.
In a scenario where there are of multiple conflicting applicants,
the applicant who meets the largest number of criteria for preference
shall receive preference.
is defined to mean the legal parcel(s) of land and the improvements
on it, including building(s), store(s), shop(s), apartment(s), or
other designated structure. In the case of a parcel in an agricultural
zone, premises is defined as the area inside of a building or other
structure or the area surrounded by a fence that is dedicated to commercial
cannabis activity. For a playground, premises is defined as the area
containing the play or athletic equipment primarily used, or primarily
intended to be used by, any person less than 18 years old. For a playground,
measurements will be from the boundary of this area containing equipment.
as defined in Section 11362.7 of the Health and Safety Code.
means the manufacturing of a non-edible cannabis product,
such as a cannabis concentrate, by a manufacturer.
is defined to mean a physical premises where product manufacturing
occurs.
as defined in Section 11362.7 of the Health and Safety Code.
is the organization or entity engaging in retail sale and
delivery of cannabis or cannabis products to customers, in compliance
with the regulations for a State Retail License Type 10 (Retail),
as specified in the California Business and Professions Code section
26050, subdivision (a)(18).
is defined as the person who is responsible for the operation,
management, direction, or policy of a marijuana retailer, cultivator,
manufacturer, or distributor.
is defined as a workforce that meets all of the following
conditions:
All of the workers are either skilled journeypersons or apprentices
registered in an apprenticeship program approved by the Chief of the
Division of Apprenticeship Standards of the California Department
of lndustrial Relations;
At least 60% of the skilled journeypersons by each contractor
employed to perform work on the project are graduates of an apprenticeship
program for the applicable occupation that was either approved by
the chief pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the apprenticeship
regulations adopted by the Federal Secretary of Labor.
For an apprenticeable occupation in which no apprenticeship
program had been approved by the Chief of the Division of Apprenticeship
Standards of the California Department of Industrial Relations before
January 1, 1995, up to one half of the graduation percentage requirements
of subsection (2) above may be satisfied by skilled journeypersons
who commenced working in the apprenticeable occupation before the
approval of an apprenticeship program for that occupation in the county
in which the project is located by the Chief of the Division of Apprenticeship
Standards of the California Department of lndustrial Relations.
|
An "apprenticeable occupation" means an occupation for which
the Chief of the Division of Apprenticeship Standards of the California
Department of Industrial Relations has approved an apprenticeship
program pursuant to Section 3075 of the Labor Code before January
1, 2014.
|
means a worker who either:
Graduated from an apprenticeship program for the applicable
occupation that was approved by the chief pursuant to Section 3075
of the Labor Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by the
Federal Secretary of Labor; or
Has at least as many hours of on-the-job experience in an applicable
occupation as would be required to graduate from an apprenticeship
program for the applicable occupation that is approved by the Chief
of the Division of Apprenticeship Standards of the California Department
of Industrial Relations.
is defined as a day care center, playground, other retailer,
or school. For purposes of this section, school means any public,
or private, accredited institution of learning providing instruction
in kindergarten or grades 1 to 12, inclusive, but does not include
any private school in which education is primarily conducted in private
homes.
(Ord. 2020-18)
Retailers shall be allowed in the commercial land use zones:
commercial (ER-C), general commercial (GC), commercial mixed use (N-CM-3),
commercial mixed use (N-CM-2), commercial mixed use (N-CM-1), commercial
mixed use (D-CM-2), (D-CM-1), general commercial (C-GC2), general
commercial (C-GCl), and in the mixed use land use zones ER-MU1 and
ER-MU2, subject to the following restrictions and regulations.
A.
At least
four licenses shall be granted to retailers. The City Council may
choose to increase the number of licenses granted at their discretion.
B.
Retailers
shall maintain a 1,000 foot separation from sensitive uses, as measured
by a straight line from the closest property lines of the premises
to the closest property line of the sensitive use. The measurement
of distance between uses will take into account natural topographical
barriers and constructed barriers such as freeways, flood control
channels, or railroad tracks without pedestrian or automobile crossings
that would impede direct physical access between the uses. In such
cases, the separation distance shall be measured as the most direct
route around the barrier in a manner that establishes direct access.
C.
A retailer
may engage in off-site delivery from the location of the retailer
to a customer. The offsite delivery must be made by an authorized
employee in an authorized vehicle owned, or leased, by the retailer.
Off-site deliveries may only be made during the hours of operation.
The retailer must adhere to any state rules and regulations regarding
delivery.
D.
Consultations
by medical professionals shall not be permitted at a retailer.
E.
Lighting
shall be provided to illuminate the interior of the retailer, façade,
and the immediate surrounding area, including any accessory uses,
parking lots, and adjoining sidewalks. Lighting shall be hooded or
oriented so as to deflect light away from adjacent properties.
F.
Security
shall be provided at the retailer which shall include operable cameras,
alarms, and a security guard. The security guard shall be licensed
by the State of California and be present on the premises 24 hours
per day.
G.
Signs
shall be posted on the outside of the retailer and shall only contain
the name of the business, limited to two colors.
H.
The
emergency contact phone number of an operator or manager shall be
posted in a location visible from outside of the retailer in character
size at least two inches in height.
I.
The
retailer shall operate only between the hours of 7:00 a.m. and 9:00
p.m., seven days a week.
J.
Rules,
regulations and local permitting requirements imposed on a retailer
by the City shall conform to the state licensing requirements for
a retailer, as set forth by the California Business and Professions
Code, Division 10, and state rules and regulations implementing those
laws.
(Ord. 2020-18)
Commercial cultivation sites shall be allowed in agricultural
(AG) zones, subject to the following restrictions and regulations.
A.
All
cultivation must occur within the interior of a building or greenhouse.
If the cultivation takes place within a greenhouse, the greenhouse
construction must meet any greenhouse building standards within the
City code, and obtain any building permits required for greenhouse
construction or expansion.
B.
An applicant
for a cultivation site must specify for which cultivation license
types the applicant will apply. Any cultivation must conform to the
plant canopy and other limits set forth by the applicable cultivation
license types.
C.
Plants
cultivated shall be tracked utilizing the state's track-and-trace
system for cannabis.
D.
Records
of cultivation, both internal and as part of the state's track-and-trace
system, must be made available to City inspectors upon request.
E.
Security
shall be provided at the commercial cultivation site, which shall
include operable cameras, alarms, and a security guard. The security
guard shall be licensed by the State of California and be present
on the premise.
F.
From
a public right-of-way, there shall be no visual evidence of cultivation
either within or outside the facility. Adverse impacts of cultivation
shall be mitigated so that a "public nuisance" as defined by California
Civil Code Section 3480 does not exist, including, but not limited
to, adverse impacts of dust, glare, heat, noise, noxious gases, significant
odor, or the use or storage of hazardous materials, processes, products
or wastes. If an adverse impact occurs, a licensee shall have a reasonable
opportunity and time to cure the complaint, adverse impact, or possible
noncompliance as defined in this section before being subject to penalty,
suspension, or revocation of the business license for cultivation.
G.
No external
signage shall be allowed, other than the address of the premise.
H.
No public
access or sales shall be allowed on the premise. Only directors, officers,
managers, employees, agents, and contractors of the cultivator shall
be present on the premises. Transporters and representatives of retailers,
distributors, manufacturers, testing labs, and other licensees under
the Medical Cannabis Regulation and Safety Act shall be allowed on
the premises with prior notice to and permission by the cultivator
to conduct business as required and appropriate.
I.
The
City encourages cultivators to operate in an environmentally sustainable
manner. Preference will be given to applicants for cultivation who
show their commitment to environmentally sustainable practices including
building LEED certification, organic growing practices, and adoption
of EPA WaterSense identified water saving technologies.
J.
Rules,
regulations, and local permitting requirements imposed on a cultivator
and their affiliated cultivation site by the City shall conform to
the state licensing requirements for a cultivator as set forth by
the California Business and Professions Code, Division 10.
(Ord. 2020-18)
Product manufacturing sites shall be allowed in business parks
(BP), light industrial (LI), and agricultural (AG) zones, subject
to the following restrictions and regulations.
A.
The
use of volatile solvents for product manufacturing is prohibited.
B.
The
production of edible cannabis products is prohibited at a product
manufacturing site.
C.
All
product manufacturing must conform to rules and requirements set forth
by the California Department of Public Health for cannabis manufacturing,
including those for testing, labeling and quality assurance.
D.
Security
shall be provided at the product manufacturing site which shall include
operable cameras, alarms, and a security guard. The security guard
shall be licensed by the State of California and be present on the
premise.
E.
No external
signage shall be allowed, other than the address of the premise.
F.
No public
access or sales shall be allowed on the premise. Only directors, officers,
managers, employees, agents, and contractors of the manufacturer shall
be present on the premises. Transporters and representatives of retailers,
distributors, cultivators, testing labs, and other licensees under
the Medical Cannabis Regulation and Safety Act shall be allowed on
the premises with prior notice to and permission by the manufacturer
to conduct business as required and appropriate.
G.
Rules,
regulations, and local permitting requirements imposed on a manufacturer
and its associated product manufacturing site by the City shall conform
to the state licensing requirements for manufacturers, as set forth
by the California Business and Professions Code, Division 10.
(Ord. 2020-18)
Cannabis kitchens shall be allowed in business parks (BP), light
industrial (LI), and general commercial (CG) zones, subject to the
following restrictions and regulations.
A.
No extraction
of cannabis concentrates shall be allowed on premise.
B.
All
edible cannabis product production must conform to rules and requirements
set forth by the California Department of Public Health for cannabis
manufacturing, including those for testing, labeling and quality assurance.
C.
Security
shall be provided at the cannabis kitchen site which shall include
operable cameras, alarms, and a security guard. The security guard
shall be licensed by the State of California and be present on the
premises during business hours.
D.
No external
signage shall be allowed, other than the address of the premise.
E.
No public
access or sales shall be allowed on the premise. Only directors, officers,
managers, employees, agents, and contractors of the manufacturer shall
be present on the premises. Transporters and representatives of retailers,
distributors, cultivators, testing labs, and other licensees under
the Medical Cannabis Regulation and Safety Act shall be allowed on
the premises with prior notice to and permission by the manufacturer
to conduct business as required and appropriate.
F.
Any
cannabis kitchen employee who is directly involved in the production,
or handling, of edible cannabis products as part of their employment
must pass a state-approved food safety certification exam.
G.
A cannabis
kitchen also must be a California-licensed commercial kitchen or a
cottage kitchen with a class B permit.
H.
Rules,
regulations, and local permitting requirements imposed on a manufacturer
and its associated cannabis kitchen by the City shall conform to the
state licensing requirements for manufacturers, as set forth by the
California Business and Professions Code, Division 10.
(Ord. 2020-18)
Distribution sites shall be allowed in business parks (BP) as
well as in light industrial (LI) zones subject to the following restrictions
and regulations.
A.
Security
shall be provided at the distribution site which shall include operable
cameras, alarms, and a security guard. The security guard shall be
licensed by the State of California and be present on the premise.
B.
No external
signage shall be allowed, other than the address of the premise.
C.
No public
access or sales shall be allowed on the premise. Only directors, officers,
managers, employees, agents, and contractors of the distributor shall
be present on the premises. Transporters and representatives of retailers,
other distributors, cultivators, manufacturers, testing labs, and
other licensees under the Medical Cannabis Regulation and Safety Act
shall be allowed on the premises with prior notice to and permission
by the distributor to conduct business as required and appropriate.
D.
Rules,
regulations, and local permitting requirements imposed on a distributor
and their affiliated distribution site by the City shall conform to
the state licensing requirements for distributors, as set forth by
the California Business and Professions Code, Division 10.
(Ord. 2020-18)
Any cannabis business shall register with the City of Encinitas
and shall show compliance with the below regulations prior to being
issued a business license and beginning operations. The City Manager
or designee of same will administer marijuana business registration.
A.
The
responsible person and owners of a cannabis business shall be subject
to a background check. Any person who has been convicted of a serious
or violent felony may not operate, manage, control, or own a cannabis
business.
B.
An applicant
for a business license for a cannabis business must provide written
proof that the building owner or management condones a cannabis business
on the premise.
C.
Preference
will be given to applicants where an owner of the applying organization
for a cannabis business has at least one of the following types of
experience:
1.
A
minimum of 12 consecutive months as an owner or responsible person
of a cannabis business, within the previous five years, in a jurisdiction
permitting such commercial cannabis activity. The 12 consecutive months
of lawful cannabis business ownership demonstrated must be of a type
substantially similar to that allowed by the City license for which
the applicant is applying;
2.
A
minimum of 36 consecutive months as an owner with an aggregate ownership
of 30% or more in a lawful pharmaceutical business licensed and regulated
by a state or the federal government. The 36 months of experience
demonstrated must be of a type substantially similar to that allowed
by the City license for which the applicant is applying; or
3.
A
minimum of 18 consecutive months as an owner with an aggregate ownership
interest of 20% or more in a lawful, properly licensed business with
an average of four or more employees located within the City, thereby
demonstrating a record of experience, familiarity and compliance with
City rules and regulations.
A cannabis business owner who meets multiple criteria will receive
greater preference based on the number of criteria they meet.
D.
No cannabis
business shall be allowed to operate where an owner, or responsible
person, has been cited or fined by any California jurisdiction for
operating a non-permitted cannabis business after October of 2015,
when the state passed the Medical Cannabis Regulation and Safety Act,
that first defined operating rules for cannabis businesses in the
State of California.
E.
The
City may charge a reasonable registration fee for a cannabis business
and a reasonable annual fee for regulating the cannabis business.
Such fees shall be established by the City.
F.
A business
license for a cannabis business may be revoked or suspended due to
legitimate loitering, significant smell, or noise complaints, upon
City confirmation of the significant smell, noise, or loitering; noncompliance
with the regulations specified in this chapter, following City confirmation
of the noncompliance; or noncompliance with other applicable state
or local regulation following City or state confirmation of the noncompliance.
The licensee shall have a reasonable opportunity and time to cure
the complaint or possible noncompliance as defined in this section
before being subject to suspension, penalty, or revocation of the
business license.
H.
For
any cannabis business type where this chapter explicitly specifies
a numeric limit on the number of business licenses that shall be granted,
the city shall conduct a lottery of eligible potential business operators
of the cannabis business type who have registered with the City and
have been determined to be in compliance with all of the rules and
regulations outlined in this chapter, in order to determine which
shall receive a business license. The lottery shall be designed in
the following manner.
1.
The
lottery shall be tiered, with the first lottery drawing among the
applicants who meet the maximum number of criteria for preference.
The subsequent lottery drawings shall take place among the applicants
who meet the second largest number of criteria, and so on, until all
licenses are granted.
2.
In
the case where a lottery is conducted, the City shall have a registration
period of one month to accept registrations from potential cannabis
businesses of the cannabis business type wishing to operate in the
City.
3.
The
City shall then determine which applicants comply with the below criteria,
in order to qualify for the lottery. The lottery shall be conducted
after verifying which applicants who registered during the registration
period meet the requirements outlined below. An applicant who is unable
to meet the requirements shown below shall be ineligible to compete
in the lottery.
a.
The address selected complies with all relevant zoning and sensitive
use requirements.
b.
The applicant has submitted written proof that the building owner
or management condones a cannabis business on the premises in the
form requested by the City.
c.
The applicant has submitted proof that they meet the preference criteria
for any preference they claim.
i.
If the documentation of a preference criteria qualification submitted
is deemed inadequate, the applicant shall be given a reasonable opportunity
to provide further documentation prior to the lottery. However, if
such documentation is not provided, the preference based on this criteria
shall not be granted.
d.
A background check has been conducted verifying that the owners of
a cannabis business have not been convicted of a serious or violent
felony.
4.
An
applicant that is selected in the lottery must demonstrate compliance
with all regulations outlined in this chapter prior to obtaining their
business license and beginning operations.
a.
If an applicant selected in the lottery is unable to comply with
the regulations and requirements outlined in this chapter in order
to obtain a business license from the City within 18 months of being
selected, their selection shall be retracted, and a subsequent registration
period shall occur and lottery shall be held for the opportunity to
obtain the forfeited business license.
i.
If the majority of the delays in the licensing of a cannabis business
are determined to be due to processing, scheduling, or other delays
on the part of the City or other relevant authority, beyond the control
of the applicant, the period for compliance shall be extended for
the applicant, proportional to the delays.
b.
If a cannabis business for a cannabis business type subject to a
lottery were to have their business license revoked, a subsequent
registration period shall occur and an additional lottery shall be
held to determine who will be eligible to obtain the business license
made available following the revocation.
I.
For
any cannabis business type where this chapter does not specify a numeric
limit on the business licenses that shall granted, the City should
allow applicants for cannabis businesses to register with the City
and apply for business licenses on an ongoing basis, without a fixed
registration period for application.
J.
A cannabis
business that has obtained a business license in the City may subsequently
transfer their business license to another premises in the City, provided
that the new premises meets all of the requirements outlined in this
chapter for their cannabis business type.
(Ord. 2020-18)
Industrial hemp shall be allowed in agricultural zones, subject
to the following restrictions and regulations. Industrial hemp shall
be cultivated in compliance with the California Food and Agricultural
Code, Division 24, as well as all relevant regulations for agriculture
and agricultural products in the Encinitas City Code. Business licenses
in the City of Encinitas for industrial hemp will be made available
60 days after the State of California develops final regulations for
industrial hemp production and licensing.
A business license for an industrial hemp agricultural activity
may be revoked or suspended due to legitimate loitering, significant
odor, or noise complaints, upon City confirmation of the smell, noise,
or loitering; noncompliance with the regulations specified in this
chapter, following City confirmation of the noncompliance; or noncompliance
with other applicable state or local regulation following City or
state confirmation of the noncompliance. The licensee shall have a
reasonable opportunity and time to cure the complaint or possible
noncompliance as defined in this section before being subject to suspension,
penalty, or revocation of the business license.
(Ord. 2020-18)
A qualified patient may cultivate up to 100 square feet indoors
for personal use. A primary care-giver may cultivate up to 100 square
feet indoors for the personal medical use of a single qualified patient,
and may cultivate for no more than five maximum individual qualified
patients. Personal use cultivation may also be further restricted,
or disallowed, by a building's owner, management, or governing housing
association as allowable by state law.
Personal use cultivation, for medical and adult use, must conform
to state law and local codes, including, but not limited to, nuisance
codes, building codes, electrical codes, and waste disposal codes.
No additional City permission, clearance or registration shall be
necessary or imposed by the City for personal use cultivation.
(Ord. 2020-18)
For all property or building construction or engineering activities
required to obtain permits from the City of Encinitas necessary to
operate a retail site, cultivation site, product manufacturing site
or distribution site, a skilled and trained workforce shall be required
for all contractors engaged in the property or building construction
activities.
(Ord. 2020-18)
This chapter, except as specified herein, shall only be amended
by a subsequent vote of the people. Notwithstanding any other law
or provision in this chapter, the City Council shall have the right
and the ability to amend or modify this chapter under the following
circumstances:
A.
After
this chapter has been in effect in the City of Encinitas for a period
of three years, the City Council, in its sole and exclusive discretion,
determines that regulations, or zoning, outlined in the chapter warrant
adjustment due to inflation, unreasonable cost burdens to the City
or cannabis businesses, unreasonable regulatory burdens to the City
or cannabis businesses, or that a zoning or regulatory restriction
contained in the chapter has created any other unnecessary or unanticipated
burden to the City or cannabis businesses, the City Council shall
be granted the power to modify the ordinance to relax the zoning or
regulatory burdens on the City and/or cannabis businesses.
B.
If the
City Attorney determines that the regulations or zoning established
in this chapter no longer conform to the California State regulations
for marijuana activity or that the regulations established in this
chapter fail to conform to the local licensing requirements for cannabis
businesses, the City Council shall be granted the power to make the
changes necessary to bring the City's regulation of cannabis businesses
into compliance with current state law.
(Ord. 2020-18)
