It is the purpose and intent of the city council to regulate cannabis businesses consistent with state law and to protect the health, safety, and welfare of the residents of the city. The regulations in this chapter do not interfere with a qualified patient's right to obtain and use cannabis as authorized under state law, nor do they criminalize the possession or cultivation of cannabis by certain individuals as authorized under state law. Cannabis businesses shall comply with all provisions of the Davis Municipal Code, state law, and all other applicable local codes and regulations, including all applicable land use and zoning regulations imposed on cannabis businesses. It is neither the intent of this chapter to condone or legitimize the illegal use or consumption of cannabis under federal, state, or local law, nor to authorize the operation of a legal business in an illegal manner.
(Ord. 2509 § 2, 2017)
As used in this chapter, the following words and phrases shall have the following meanings, unless otherwise specified:
Cannabis
means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; 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, including cannabis products derived therefrom. For purposes of this chapter, "cannabis" shall mean and include both cannabis for medical purposes and non-medical cannabis, unless otherwise specified. Cannabis shall not include industrial hemp.
Cannabis business
means a business activity including, but not limited to, planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, distributing, researching, testing, providing, or selling wholesale and/or retail sales of cannabis. A cannabis business includes any facility, building, structure or location, expressly including dispensaries and deliveries, and shall expressly include those commercial cannabis activities authorized and/or licensed by state law.
Cannabis business permit
means any license issued to a cannabis business pursuant to the provisions of this chapter.
City manager
means the city manager and designee.
Conditional use permit
means any conditional use permit, including administrative use permits, issued by the city pursuant to the Zoning Code related to the operation of a commercial cannabis business.
Drug paraphernalia
shall have the same definition as set forth in California Health and Safety Code Section 11364.5.
Interested parties
means any of the following:
(1) 
Any individual that has an aggregate ownership interest, other than a security interest, lien, or encumbrance, of twenty percent or more in the commercial cannabis business;
(2) 
Partners, officers, directors, and stockholders of every corporation, limited liability company, or general or limited partnership that owns at least twenty percent of the cannabis business or that is one of the partners in the cannabis business;
(3) 
The manager(s) of the cannabis business; and
(4) 
The staff of the cannabis business.
Juvenile
means any natural person who is under the age of eighteen years.
Manager
means a person with responsibility for the establishment, registration, supervision, or oversight of the operation of a cannabis business, including, but not limited to, a person who performs the functions of a board member, director, officer, owner, operating officer, or manager of the cannabis business.
Medical cannabis
means cannabis used for medical purposes in accordance with the Compassionate Use Act (California Health and Safety Code Section 11362.5 et seq.) and the Medical Cannabis Program Act (California Health and Safety Code Section 11362.7 et seq.), as they may be amended from time to time.
Physician
means a licensed medical doctor as defined in California Business and Professions Code Section 4039.
Police chief
shall mean the City of Davis chief of police and designee.
Primary caregiver
shall have the same definition as set forth in California Health and Safety Code Section 11362.7, as may be amended.
Private medical records
means records related to the medical history of a qualified patient and includes the recommendation of a physician for the medical use of medical cannabis and the designation of a primary caregiver by a qualified patient.
Qualified patient
shall have the same definition as set forth in California Health and Safety Code Section 11362.7, as may be amended.
Staff
means a person other than a manager who works or provides services on the site of a cannabis business, whether as an employee, contractor, or volunteer.
(Ord. 2509 § 2, 2017)
(a) 
No cannabis business shall operate unless it is in possession of all applicable state and local licenses or permits. A cannabis business subject to state licensing under the Medical Cannabis Regulation and Safety Act, California Business and Professions Code Section 19300 et seq., that is operating in compliance with this chapter and other state and local requirements on or before January 1, 2018, may continue its operations after January 1, 2018 provided that it timely applies for and its application for licensure is approved by the state, subject to the requirements of California Business and Professions Code Section 19321(b), as may be amended. If a cannabis business operating in the city on or before January 1, 2018 fails to timely apply for a license by the deadline established by the applicable state licensing authority, or its application for licensure is denied, the cannabis business shall cease all operations of the cannabis business until a valid state license is obtained, in addition to any other state and local requirements that may apply.
(b) 
Every cannabis business shall submit to the police chief a copy of any and all of its state and local licenses and permits required for its operation.
(c) 
If any other applicable state or local license or permit required for a cannabis business's operation is denied, suspended, modified, revoked, or expired, the cannabis business shall notify the police chief in writing within ten days.
(Ord. 2509 § 2, 2017)
In addition to any fees established and imposed pursuant to this chapter, all cannabis businesses are required to pay all applicable taxes, including the marijuana business license tax imposed by Section 19.04.100 of the Davis Municipal Code, as applicable.
(Ord. 2509 § 2, 2017)
Cannabis business permits issued pursuant to this chapter are not property and have no value. Cannabis business permits may not be transferred, sold, assigned or bequeathed expressly or by operation by law. Any attempt to directly or indirectly transfer a cannabis business permit shall be unlawful and void, and shall automatically revoke the permit.
(Ord. 2509 § 2, 2017)
All notices required by this chapter shall be 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 police chief, 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. 2509 § 2, 2017)
(a) 
The police chief may enter and inspect the site of a cannabis business at any reasonable time to ensure compliance and enforcement of the provisions of this chapter.
(b) 
The police chief and city manager may inspect and demand copies of records maintained by the cannabis business, except for private medical records, which shall be made available to law enforcement agencies only pursuant to a properly executed search warrant, subpoena, or court order.
(c) 
No person shall refuse, impede, obstruct, or interfere with a lawful inspection performed pursuant to this chapter.
(Ord. 2509 § 2, 2017)
(a) 
Any person who violates the provisions of this chapter shall be subject to a fine of up to one thousand dollars for each day the violation continues.
(b) 
In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, and administrative penalties pursuant to Article 1.02 of this Code.
(c) 
Violations of this chapter are hereby declared to be public nuisances.
(d) 
All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other available remedy for the purpose of enforcing the provisions hereof.
(Ord. 2509 § 2, 2017)
If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this chapter is for any reason held to be unconstitutional, invalid, or ineffective by any court of competent jurisdiction, that decision shall not affect the validity or effectiveness of the remaining portions of this chapter. The city council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.
(Ord. 2509 § 2, 2017)