A. 
The purpose of this section is to identify and establish standards for commercial cannabis uses that are conditionally permitted in certain Zoning Districts, but which have the potential to create significant effects on the community and surrounding properties. Furthermore, it is the purpose and intent of this section to:
1. 
Incorporate by reference applicable Medicinal and Adult Use Commercial Cannabis Regulations for "M" and "A", Type 10 licenses, respectively, in effect on the date that the ordinance codified in this section becomes effective, and as may be amended from time to time;
2. 
Limit commercial cannabis uses within the City of Sand City solely to storefront commercial retail uses for both "M" and "A" licenses, as defined in Business and Professions Code Section 26001(a), (ai);
3. 
Establish standards for the issuance of permits for retail commercial storefront cannabis uses by specifying the Zoning Districts wherein such uses may be located and the location of such uses in relation to other uses within the City of Sand City;
4. 
Assist law enforcement agencies in performing their duties effectively and in accordance with California law.
5. 
Acknowledge that, notwithstanding the enactment in California of the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"), the authority under which the provisions of this chapter are incorporated within the Municipal Code, all forms of cannabis cultivation, processing, manufacture, distribution, sale and use of cannabis is illegal under federal law, and the provisions of this chapter grant limited immunity from local prosecution to those medical and nonmedical cannabis activities that do not violate the restrictions and limitations set forth in this chapter and relevant California law.
6. 
Ensure that cannabis sold for medical and nonmedical purposes remains secure and does not find its way to minors or illicit markets.
7. 
This section shall not apply to legal medical cannabis or recreational cannabis activities carried out exclusively for one's personal use that does not involve or commercial activity otherwise regulated by this section.
(Ord. 24-03, 11/5/2024)
"Cannabis"
means that plant and all derivatives as defined in Business and Professions Code Section 26001(f) and California Health and Safety Code Section 11018 as both may be amended from time to time. Any reference to cannabis or cannabis products shall include medicinal and nonmedicinal cannabis and medical and nonmedical cannabis products unless otherwise specified.
"Cannabis commercial retail business" or "retailer"
means a use requiring solely a Type 10 License wherein cannabis is offered for retail sale solely within a fully enclosed building. Such uses may include delivery, defined in Business and Professions Code 26001(r), and in accordance with applicable provisions of Department of Cannabis Control Regulations Section 15311, as may be amended, and in accordance with state and local laws and regulations.
"Cannabis delivery"
means the commercial transfer of cannabis or cannabis products to a customer pursuant to MAUCRSA or to a primary caregiver or qualified patient as defined in Section 11362.7 of the Health and Safety Code, as may be amended.
"Cannabis license"
means an "A" or "M" license issued by the State of California Department of Cannabis Control issued pursuant to MAUCRSA and in accordance with Department of Cannabis Control Regulations Section Chapter 3, Section 15400 et seq.
"Cannabis licensee"
means a person issued a state license under MAUCRSA to engage in retail commercial cannabis sales and related activities.
"Cannabis products"
means cannabis offered for retail sale by a Type 10 licensee in accordance with provisions of this chapter.
"Child care center"
shall have the same meaning as "day care center" in Health and Safety Code Section 1596.76, as may be amended from time to time: means any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school age child care centers.
"City Manager"
means the City Manager or her/his designee.
"Commercial cannabis uses"
means only storefront retail commercial cannabis activities pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"), Business and Professions Code 26000 et seq., including retail, sale of cannabis or cannabis products.
"Final authority"
means the individual or official City body (the City Manager, Director, Council, Commission, or Board) and others as identified in the Sand City Municipal Code as having the responsibility and authority to approve or deny land use permit applications.
"Medical cannabis" or "medicinal cannabis"
means cannabis that is used for medicinal cannabis purposes in accordance with the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA").
"Person"
means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, tribe, or any other group or combination acting as a unit and includes the plural as well as the singular number.
"Premise(s)"
means a leased or owned space within a fully enclosed building where the commercial retail cannabis use or activity is or will be conducted.
"Primary caregiver"
shall have the same meaning as set forth in Health and Safety Code Section 11362.7, as the same may be amended from time to time.
"Public place"
means any publicly owned property or property on which a public entity has a right-of-way or easement.
"Operator"
means the natural person or designated officer responsible for the operation of a retail commercial cannabis use.
"Retailer"
means any premises that is a physical location within an enclosed building from which retail commercial cannabis activities are conducted facility, under a state cannabis license Type 10, or a state cannabis license type subsequently established equivalent to a Type 10.
"Sale," "sell," and "to sell"
shall have the same meaning as set forth in Business and Professions Code Section 26001(ay) as the same may be amended from time to time: include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes 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, 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.
"School"
means any public or private school providing instruction to students in kindergarten or any grades 1 through 12.
"Youth center"
shall have the same meaning as in Section 11353.1 of the Health and Safety Code, as may be amended from time to time: 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 service teenage club facilities, video arcades, or similar amusement park facilities.
(Ord. 24-03, 11/5/2024)
A. 
Cannabis Retail Commercial Businesses Permitted Within the City. A maximum of two, Type 10 Cannabis storefront retail businesses may operate within the City subject to the restrictions of this chapter.
B. 
Cannabis Delivery Operations Based Outside the City Permitted. Licensed cannabis delivery operations based outside of the City may deliver cannabis and cannabis products to customers and qualified patients and their caregivers within the City.
(Ord. 24-03, 11/5/2024)
A. 
Any cannabis business allowed in the City shall obtain all of the following:
1. 
A City business license.
2. 
A cannabis storefront commercial retail operating permit on a form specified by the City Manager.
3. 
A conditional use permit pursuant to the procedure in Chapter 18.74 of this code. Any conditional use permit relating to the location of a retail storefront commercial cannabis business may be approved based on all of the following findings:
a. 
The proposed use is consistent with the general plan and any applicable specific plan.
b. 
The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity.
c. 
The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints.
d. 
The proposed project has been reviewed in compliance with the California Environmental Quality Act.
e. 
Conditions of approval require that the continuation of the retail storefront commercial cannabis use requires verification of annual license renewal by the Department of Cannabis Control within 30 days following approval of the renewal.
f. 
Conditions of approval require the execution of a Community Benefit Agreement prior to issuance of a business license for operation of a retail commercial cannabis business.
(Ord. 24-03, 11/5/2024)
A. 
All storefront retail commercial cannabis uses operating within the City shall be located in the Regional Commercial (C-4) Zoning District.
B. 
Additionally, the following location and proximity requirements shall apply:
1. 
No commercial cannabis use shall be located within 600 feet of a school, child care center, or youth center, as measured from the nearest property lines.
2. 
No commercial cannabis use shall be located within 200 feet of a park or library, as measured from the nearest property lines.
C. 
The proximity requirements above may be waived by the City Council when the applicant can show that an actual impassible physical separation exists between land uses or parcels, such as a building, sound wall, major street or highway, such that no negative off-site impacts could occur that would result in harm or likely harm to the public health, safety, or welfare or the health, safety, or welfare of nearby resident or tenant, unless otherwise prohibited under state law.
(Ord. 24-03, 11/5/2024)
A. 
Application Submittal, Review and Approval Procedures.
1. 
Solicitation of Applications. The City Manager will issue a notice soliciting applications to operate a storefront retail commercial cannabis business pursuant to this chapter. Such notice will specify when the City will begin accepting applications and the deadline for receipt of applications.
2. 
Applications shall include a detailed description of proposed "A" and "M" Type 10 License operations sufficient to demonstrate compliance with and corresponding to relevant MAUCRSA provisions and Department of Cannabis Control Medicinal Adult Use Commercial Cannabis Regulations generally and, in particular, Chapters 1 "All Licenses" and Chapter 3 "Retailers" (Sections 15000 and 15400 et seq., respectively), as they may be amended. Descriptions shall reference and address each of the applicable sections contained within these chapters.
3. 
Selection Process. The method for selecting the applicants that will be eligible to receive operator permits shall be set by resolution of the City Council. The City Manager shall be authorized to prepare any other necessary forms and adopt any necessary rules to implement the procedure guidelines and review criteria.
4. 
Six Month Time Period to Seek Conditional Use Permit. An applicant has six months from the selection of an application by the City Council to obtain a conditional use permit pursuant to Section 18.102.040(A)(3). If an applicant fails to obtain a conditional use permit during that time period, another qualified applicant may be selected and such applicant may be permitted six months from the date of selection by the City Council as an operator to seek a conditional use permit from the City Council.
5. 
State Licensing. Applicants who are granted an operator permit and conditional use permit must obtain a state cannabis license prior to commencing operations. If an applicant fails to obtain a state cannabis license within six months of being granted an operator permit, said operator permit shall expire and the City may select another qualified applicant in accordance with the method outlined per the City Council resolution and such applicant will be permitted to seek a conditional use permit from the City Council.
6. 
Licensed owners and operators shall, within the required operator agreement, acknowledge and agree to enable and facilitate the Chief of Police and other federal, state or local law enforcement entity or regulatory agency entity to inspect any premises and delivery vehicles to ensure compliance with these regulations and to fully cooperate with any official criminal investigation including access to camera footage, documents, premise areas of any building within which commercial retail cannabis is conducted.
B. 
Grounds for Rejection of Applications/Revocation, Modification, or Suspension of Conditional Use Permits and Operator Permits.
1. 
The City Manager, or designee, has the authority and discretion to reject any application pursuant to this chapter for reasons of inconsistency with the requirements of this chapter.
2. 
The City Council may suspend, modify, or revoke a conditional use permit or operator permit based on, but not limited to the following findings:
a. 
Entitlements for establishment of a Commercial Retail Cannabis Business are based on false or misleading statements to the City made by an applicant, partner, or investor.
b. 
Any owner, operator, investor, partner, or agent has been convicted of a felony, crime of moral turpitude, has been found by any state or local jurisdiction to have violated the provisions of MAUCRSA, or once formally notified by the City Manager or designee of such convictions or violations by an employee, an owner or operator maintains the ongoing permanent or temporary employment by such persons.
c. 
Any owner, operator, investor, partner, or agent has had a cannabis-related license or approval revoked from another jurisdiction within the previous year.
d. 
Failure to comply with any provisions of this article, the Zoning Code, state law, or any other applicable laws or regulations.
e. 
Unpaid fees, fines, taxes, or administrative penalties.
f. 
Facts or circumstances exist which indicate that the operation does or would very likely constitute a threat to public health, safety and/or welfare.
g. 
The cannabis business permittee has not been in regular and continuous operation in six months since the date the City Council approved the application or the approved extension of the deadline from the City Manager or his or her designee.
h. 
The operation as proposed would violate any provision of state or local laws or regulations.
i. 
The operator fails to implement and maintain a safety and security plan in conformance with applicable Department of Cannabis Control Regulations contained in Chapter 1, Article 5 as they may be amended.
j. 
The operator willfully fails to comply with Laws and Regulations of the California Department of Justice Office of the Attorney General, Bureau of Firearms, as determined by the Chief of Police.
k. 
The operator has engaged in unlawful, fraudulent, unfair or deceptive business acts or practices.
l. 
The applicant's state license for the commercial cannabis operations is suspended or revoked. The City Council may reinstate the operator permit when documentation is received showing that the state license has been reinstated or reissued. It shall be within the City Council's sole discretion whether the City reinstates any permit after suspension or revocation of a state license.
m. 
State law permitting the use for which the permit was issued is amended or repealed resulting in the prohibition of such use, or the City receives credible information that the Federal government will commence enforcement measures against such businesses and/or local governments that permit such uses.
n. 
The applicant, owner, operator, partner or investor violates any agreement with the City, including City business license, conditional use permit, or community benefit agreement.
C. 
Any cannabis business that does not have the applicable state license is prohibited within the City.
D. 
The City shall not issue any discretionary or ministerial permit, license, or other entitlement, which is sought pursuant to this article, including zoning clearance for a building permit, where the property upon which the use or structure is proposed is in violation of the Sand City Municipal Code, or any other local, state or federal law.
E. 
Operator Qualifications. All commercial cannabis operators must meet the following minimum qualifications. The City reserves the right to require additional qualifications through the application procedure.
1. 
Commercial cannabis business operators must be 21 years of age or older.
2. 
Commercial cannabis business operators shall be subject to background search by the California Department of Justice and local law enforcement.
3. 
No commercial cannabis business owner or operator may have a felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code, and subdivision (c) of Section 1192.7 of the Penal Code. Operators may not have 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.
4. 
Commercial cannabis operators must meet the minimum qualifications established by the state for the storefront retail commercial license type.
F. 
Cannabis Operator Application Procedure.
1. 
A person may apply to operate a cannabis business by filing an application with the City Manager on a form provided by the City, and in accordance with subsection A, resolution of the City Council and this subsection F.
2. 
The City Manager, or his or her designee, may design application forms and procedures specific to storefront retail license, type M, including online permitting, and require inspections of proposed facilities before approving a commercial cannabis use under this article.
3. 
Operator applications shall be reviewed by City staff or qualified consultants, as designated by the City Manager. Such review may include a scoring or ranking system.
4. 
Applications shall include a component on community benefits, the terms of which shall be set out and memorialized in a community benefit agreement. Community benefits may include, but will not be limited to: in-kind donations; sponsorship of select community events; financial support for special community events such as fairs, afterschool programs, youth centers, local schools (whether public or private); school athletic programs; school clubs; community centers, homeless shelters, senior centers and/or senior living facilities, and/or parks and recreation programs or facility improvements.
(Ord. 24-03, 11/5/2024)
Commercial cannabis uses shall comply with any taxes that may be enacted by the City Council or voters and any additional regulations that may be promulgated in addition to all other current applicable state and local taxes.
(Ord. 24-03, 11/5/2024)
A. 
Any applicant aggrieved by any formal action taken by the City Manager regarding actions or determinations referenced in Section 18.102.060(B) may appeal to the City Council in writing within 10 days after the date of such actions. City Council actions on such appeals shall be final.
1. 
Appellants who file a timely written notice of appeal, on an appeal form created by the City Manager, will be entitled to an administrative hearing before the City Council.
2. 
Upon receipt by the City Clerk of a timely-filed notice of appeal pertaining to suspensions, revocations, or non-renewals the City Clerk shall forward such appeal to the City Council, who shall schedule a hearing within 30 days. In the event such hearing cannot be heard within that time period or a mutually agreed upon time with the appellant, then the City Clerk shall schedule the appeal to be heard within 45 days.
3. 
The appellant(s) listed on the written notice of appeal shall be notified in writing of the date, time, and location of the hearing at least 10 days before the date of the hearing ("notice of appeal hearing").
4. 
At the date, time and location set forth in the notice of appeal hearing, the City Council shall hear and consider the testimony of the appellant(s), City staff, and/or their witnesses, as well as any documentary evidence properly submitted for consideration. The following rules shall apply at the appeal hearing:
a. 
Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, collateral, undue, and repetitious testimony may be excluded.
b. 
The City bears the burden of proof to establish the grounds for nonrenewal, suspension, or revocation by a preponderance of evidence. Appellant(s) or permittee(s) bear the burden of proof regarding denial of an applicant's/permittee's application.
c. 
The issuance of the City Manager's notice constitutes prima facie evidence of grounds for the denial, nonrenewal, suspension or revocation.
d. 
The City Council may accept and consider late evidence not submitted initially with the notice of appeal upon a showing by the appellant of good cause, provided, however, all evidence must be submitted at a minimum 24 hours prior to the set hearing start time. The City Council shall determine whether a particular fact or set of facts amount to good cause on a case-by-case basis.
e. 
The appellant may bring a language interpreter to the hearing at their sole expense.
f. 
The City may, at its discretion, record the hearing by stenographer or court reporter, audio recording, or video recording. If the appellant requests from the City that a court reporter, stenographer, or videographer be used, appellant shall bear the costs of same and shall deposit such fees prior to commencement of the administrative hearing.
5. 
If the appellant, or their legal representative, fails to appear at the appeal hearing, the City Council may cancel the appeal hearing and send a notice thereof to the appellant by certified, first class mail to the address(es) stated on the notice of appeal. A cancellation of a hearing due to non-appearance of the appellant shall constitute the appellant's waiver of the right to appeal and a failure to exhaust all administrative remedies. In such instances, the notice of decision is final and binding.
6. 
Final Decision. Following the conclusion of the administrative hearing, the City Council shall issue a written decision within 20 days which: (a) determines if the action appealed from is affirmed or overturned; and (b) specifies the reasons for the decision.
7. 
The written decision of the City Council shall provide that it is final and conclusive and is subject to the time limits and procedures set forth in California Code of Civil Procedure Sections 1094.5 and 1094.6 for judicial review.
8. 
A copy of the written decision shall be served by certified, first class mail on the appellant. If the appellant is not the owner of the real property in which the cannabis business is located, or proposed to be located, a copy of the final decision may also be served on the property owner by first class mail to the address shown on the last equalized assessment roll. Failure of a person to receive a properly addressed final decision shall not invalidate any action or proceeding by the City pursuant to this chapter.
B. 
In any enforcement action brought pursuant to this chapter, whether by administrative or judicial proceedings, each person who causes, permits, suffers, or maintains the unlawful cannabis use shall be liable for all costs incurred by the City, including, but not limited to, administrative costs, and any and all costs incurred to undertake, or to cause or compel any responsible person to undertake, any abatement action in compliance with the requirements of this section. In any action by the agency having jurisdiction to abate unlawful cannabis uses under this section, whether by administrative or judicial proceedings, the prevailing party shall be entitled to a recovery of the reasonable attorney's fees incurred. Recovery of attorneys' fees under this subdivision shall be limited to those actions or proceedings in which the City elects, at the initiation of that action or proceeding, to seek recovery of its own attorney's fees. In no action, administrative proceeding, or special proceeding shall an award of attorneys' fees to a prevailing party exceed the amount of reasonable attorney's fees incurred by the City in the action or proceeding.
C. 
Liability and Indemnification. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this article shall not become a personal liability of any public officer or employee of the City. To the maximum extent permitted by law, the permittees under this article shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of Sand City, the Sand City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called "City") from any liability, damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings, or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) (collectively called "action") against the City to attack, set aside, void or annul, any cannabis-related approvals and actions and strictly comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys' fees. Permittees shall be required to agree to the above obligations in writing.
(Ord. 24-03, 11/5/2024)