(a) Purpose. The purpose and intent of this Section is to regulate the cultivation of adult-use and medical cannabis that is grown in accordance with State law in order to promote the health, safety, morals, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MAUCRSA.
(b) Definitions. For purposes of this Section, the following definitions shall apply, unless the context clearly indicates otherwise:
(1) “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 Health and Safety Code.
(2) “Cultivation” shall be defined in accordance with the MAUCRSA, Business and Professions Code section 26001, and other applicable State laws.
(3) “Cultivation Permit” means a City permit to operate an indoor adult-use and/or medical cannabis cultivation facility pursuant to the terms and conditions of this Section and the conditions of approval for the permit.
(4) “Cultivation Permittee” means an applicant who has applied for and has been issued a Cultivation Permit by the City pursuant to the terms and conditions of this Section.
(5) “CUP” means a Conditional Use Permit issued by the City in accordance with this Code.
(6) “Fully enclosed and secure structure” means a space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, and which is accessible only through one or more lockable doors and is inaccessible to minors.
(7) “Indoors” means within a fully enclosed and secure structure.
(8) “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). (Bus. & Prof. Code, section 26000 et seq.)
(9) “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 Health and Safety Code and other applicable State laws, by a medicinal cannabis patient in California who possesses a physician’s recommendation. For purposes of this definition, “medical cannabis” also means “medical marijuana.” “Nursery” means an adult-use and/or medical marijuana cultivation operation that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of medical marijuana, including research and development related thereto.
(10) “Outdoors” means any location within the City that is not within a fully enclosed and secure structure.
(c) Cannabis Cultivation Prohibited. All cannabis cultivation within the City is prohibited except as expressly permitted by this Section.
(d) Indoor Medical Cannabis Cultivation Conditionally Permitted. Indoor adult- use and medical cannabis cultivation is conditionally permitted in the City only as expressly specified in this Section.
(1) Indoor Medical Cannabis Cultivation Standards. Indoor adult-use and medical cannabis cultivation, within the City, shall be in conformance with the following standards:
A. Indoor adult-use and medical cannabis cultivation shall only be allowed upon application and approval of a Cultivation Permit and a CUP in accordance with the criteria and process set forth in this Section and this Code.
B. Indoor adult-use and medical cannabis cultivation is a conditionally permitted use only on properties within the City’s Cannabis Overlay Zones.
C. No cannabis cultivation shall be established, developed, or operated within 600 feet of a school, public playground or park, child care or day care facility, youth center, or church. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the indoor adult-use and/or medical cannabis cultivation is, or will be located, to the nearest property line of those uses described in this Subsection.
D. An indoor adult-use and/or medical cannabis cultivation facility may not be located within the same unit as a cannabis testing facility.
E. Subject to the further requirements of this Section, only the following State cultivator license classification types “M” and “A” specified in the MAUCRSA and Business and Professions Code sections 26001 and 26050 will be allowed to operate in the City: 1, 1A, IB, 1C, 2, 2A, 2B, 3, 3A, 3B, and 4.
F. Indoor adult-use and medical cannabis cultivation is allowed only within a fully enclosed and secure structure that is inaccessible to minors.
G. Indoor adult-use and medical cannabis cultivation shall not exceed the square footage authorized pursuant to the CUP.
H. From any public right-of-way, there shall be no visible exterior evidence of any indoor adult-use or medical cannabis cultivation activity.
I. Indoor adult-use and medical cannabis cultivation activity may include production of clones, growing marijuana plants, harvesting marijuana plants, harvesting marijuana seeds, drying marijuana flowers, producing other agricultural products used specifically for the planting, propagation, cultivation of adult-use and medical marijuana, and research and development related to the foregoing, but shall not include any extraction procedures to produce concentrated THC.
J. Indoor adult-use or medical cannabis cultivation shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes.
K. Each indoor adult-use and/or medical cannabis cultivation facility shall fully comply with all of the applicable restrictions and mandates set forth in State law. An indoor adult-use and/or medical cannabis cultivation facility shall comply with all size requirements for such facility as imposed by State law. An indoor adult-use and/or medical cannabis cultivation facility shall not engage in any activities not allowed by an indoor adult-use and/or medical cannabis cultivation facility pursuant to State law. An indoor adult-use and/or medical cannabis cultivation facility shall comply with all horticultural, labeling, processing, and other standards required by State law.
L. There is no set restriction on the hours of operation of an indoor adult use and/or medical cannabis cultivation facility; however, restricted hours of operation may be established as a condition of approval of the Cultivation Permit or the applicable CUP.
M. All cannabis shall be kept in a secured manner during all business and nonbusiness hours.
N. An indoor adult-use and/or medical cannabis cultivation facility shall operate within a legal structure that is compliant with all applicable State and local laws.
O. An indoor adult-use and/or medical cannabis cultivation facility must pay all applicable sales taxes pursuant to all federal, State, and local laws.
P. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited on the premises of an indoor adult-use and/or medical cannabis cultivation facility. The term “premises” as used in this Subsection includes the actual indoor adult-use and/or medical cannabis cultivation building, as well as any accessory structures and parking areas. The indoor adult-use and/or medical cannabis cultivation facility building entrance shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming cannabis or alcohol on the premises or in the vicinity of the facility is prohibited.
Q. Signage for an indoor adult-use and/or medical cannabis cultivation facility shall be limited to name of business only, shall be in compliance with the City's sign code, and shall contain no advertising of any companies, brands, products, goods, or services. Signage shall not include any drug-related symbols.
R. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. An indoor adult-use and/or medical cannabis cultivation facility shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any indoor adult-use and/or medical cannabis cultivation facility.
S. Physician services shall not be provided on the premises. “Physician services” does not include social services, including counseling, help with housing and meals, hospice, and other care referrals which may be provided on site.
T. The building in which any indoor adult-use and/or medical cannabis cultivation facility is located, as well as the operations as conducted therein, shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City's business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the MAUCRSA. Compliance with all requirements of State law pertaining to indoor cannabis cultivation is also required.
U. An indoor adult-use and/or medical cannabis cultivation facility shall not manufacture, process, distribute, transport, sell, dispense, or administer cannabis from the facility, unless expressly and affirmatively authorized by State law and permitted by local law. An indoor adult-use and/or medical cannabis cultivation facility shall not be operated as a cannabis manufacturing, distribution, transportation, or testing facility, or as a cannabis dispensary, unless expressly and affirmative authorized by State law and permitted by local law.
V. The operators of an indoor adult-use and/or medical cannabis cultivation facility shall provide the City Manager or the City Manager’s designee with the name, phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the indoor adult-use and/or medical cannabis cultivation facility. An indoor adult-use and/or medical cannabis cultivation facility shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.
W. An indoor adult-use and/or medical cannabis cultivation facility shall be operated in accordance with the conditions of approval associated with the applicable CUP for the parcel of real property upon which the indoor adult-use and/or medical cannabis cultivation activities occur.
X. An indoor adult-use and/or medical cannabis cultivation facility shall have a security plan including the following measures:
1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least 120 concurrent hours of digitally recorded documentation in a format approved by the City Manager or the City Manager’s designee. The cameras shall be in use 24 hours per day, 7 days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, cultivation areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager’s designee. Remote log-in information shall be provided to the City Manager, the City Manager’s designee, the Manager of Code Enforcement, and law enforcement to allow them to view the security camera images and recordings from their own facilities at any time. Any disruption in security camera images shall be cured expeditiously.
2. The indoor adult-use and/or medical cannabis cultivation facility shall be alarmed with an alarm system that is operated and monitored by a reputable security company.
3. Entrance to the cultivation area, and all storage areas, shall be locked at all times, and under the control of the indoor adult-use and/or medical cannabis cultivation facility’s staff.
4. The entrances and all window areas shall be illuminated during evening hours. The facility shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, shielding, etcetera, and shall secure the necessary lighting approvals and permits as needed.
5. All windows on the building that houses the indoor adult- use and/or medical cannabis cultivation facility shall be appropriately secured and all cannabis securely stored.
Y. Recordings made by the security cameras shall be made available to the City Manager, the City Manager’s designee, the City’s Code Enforcement Manager, and law enforcement upon verbal request—no search warrant or subpoena shall be needed to view the recorded materials.
Z. The City Manager, the City Manager’s designee, or the Code Enforcement Manager shall have the right to enter the adult-use and/or cannabis cultivation facility for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and the State. The City Manager, the City Manager’s designee, or the Code Enforcement Manager shall maintain a log tracking the time and date of all inspections, the individuals requesting the inspection, and the result of each inspection. Individuals participating in any such inspection must take precautions and comply with standard safeguards and procedures in place at the facility regarding security, clean room/clean area access and anti-contamination measures.
AA. All batches of final cultivated cannabis must be inspected and quality tested by a qualified third party distributor and testing facility prior to distribution to a dispensary as required by the MAUCRSA, Business and Professions Code section26100, the Department of Food and Agriculture regulations, and the State Department of Public Health regulations.
(2) Cultivation Permit Applications. All applicants wishing to obtain a Cultivation Permit from the City shall file an application with the City upon a form provided by the City and shall pay a Cultivation Permit Application Fee as established by the City. An application for a Cultivation Permit shall include at least the following information:
A. An estimate of the size of the proposed indoor adult-use and/or medical cannabis cultivation facility.
B. The address of the location for which the Cultivation Permit is sought.
C. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, cultivation areas, lighting, signage, etcetera.
D. A proposed security plan in compliance with the Indoor Adult-Use and Medical Cannabis Cultivation Standards.
E. The names, addresses, and relevant criminal histories of all potential employees, facility managers, and other relevant parties for the indoor adult-use and/or medical cannabis cultivation facility. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.
F. The name and address of the owner and lessor of the real property upon which the indoor adult-use and/or medical cannabis cultivation activity is proposed to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that an indoor adult-use and/or medical cannabis cultivation facility will be operated on the property.
G. Authorization for the City Manager or the City Manager’s designee to seek verification of the information contained within the application.
H. Evidence that the indoor adult-use and/or medical cannabis cultivation facility will be located in a legal structure that is compliant with all applicable State and local laws.
I. A statement in writing by the applicant that the applicant certifies under penalty of perjury that all the information contained in the application is true and correct.
J. Any such additional and further information as is deemed necessary by the City Manager or the City Manager’s designee to administer this Section.
K. The City Manager or the City Manager’s designee shall conduct a background check of any applicant seeking a Cultivation Permit, including all potential employees and any person who may be a facility manager or otherwise responsible for the activities of the indoor adult-use and/or medical cannabis cultivation facility (“Applicant’s Agents”), and shall prepare a report on the acceptability of the applicant and the Applicant’s Agents and the suitability of the proposed location.
L. The City Manager or the City Manager’s designee shall rank all qualified applications in order of those that best satisfy the requirements of this Section and provide the highest level of service and opportunities for residents of the City based on the requirements of this Section and the following criteria (“Merit List”):
1. The operational plan for the facility.
2. The security plan for the facility.
3. The experience of the operators of the facility.
4. The adequacy of capitalization for the facility and its operations.
5. The employment of City residents and other public benefits to the City.
(3) Cultivation Permit. The following conditions apply to each Cultivation Permit:
A. Cultivation Permit will not be awarded to an applicant if:
1. The applicant or the Applicant’s Agents made one or more false or misleading statements or omissions in the application or during the application process.
2. The proposed indoor adult-use and/or medical cannabis cultivation facility is not allowed by State or local law.
3. The applicant is not a legal representative of the indoor adult-use and/or medical cannabis cultivation facility.
4. The applicant or the Applicant’s Agents have been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, transportation, distribution, or any such similar activity related to controlled substances, with the exception of cannabis related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
5. The applicant or the Applicant’s Agents have engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
6. The applicant has not satisfied each and every requirement of this Section.
B. A Cultivation Permit shall be awarded by the City to eligible Cultivation Permit applicants in order of the Merit List as established by the City Manager or the City Manager’s designee. The number of Cultivation Permits shall be limited to those that may be reasonably accommodated within the Cultivation Zone as determined by the City Manager or the City Manager’s designee.
C. Before a Cultivation Permit can be issued to an applicant, Cultivation Permit fees must be paid to offset all related costs to the City, and the proposed indoor adult-use and/or medical cannabis cultivation facility location must pass all applicable inspections.
D. A Cultivation Permit is subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the indoor adult-use and/or medical cannabis cultivation activity occurs.
E. A Cultivation Permit is subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the activity and protect the public.
F. All cultivation activities shall be subject to an excise tax to be established by the City and the voters.
G. A Cultivation Permittee may not hold or use any other cannabis activity permits or licenses that would otherwise be a violation of this Section, the MAUCRSA, or Business and Professions Code section 26050.
H. A Cultivation Permittee shall enter into an agreement with the City to fully reimburse the City for all fiscal impacts, costs, expenses, fees, and attorneys’ fees incurred by the City related to the Cultivation Permit and the indoor adult-use and/or medical cannabis cultivation activity.
I. Cultivation Permittees who are in good standing with the City and who were previously authorized to engage in indoor medical cannabis cultivation, may request an abbreviated application for a permit to engage in indoor adult-use cannabis cultivation within the same cultivation facility, and they may operate under both permits in the same space, subject to state and local laws. The abbreviated permit process will allow Cultivation Permittees to submit certain previously approved application materials for their adult-use Cultivation Permit. The City reserves the right to request the Cultivation Permittee to submit a new Cultivation Permit application if the resubmitted materials do not satisfy the City’s Cultivation Permit requirements. The City Manager will determine the appropriate fees for the adult-use permit, and the City Manager shall issue the adult-use permits on an expedited basis based on the prior applications and approvals.
J. A Cultivation Permittee shall:
1. Carry liability insurance in the amounts and types set by the City Manager or the City Manager’s designee, and name the City as an additional insured on all such insurance policies.
2. Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Cultivation Permit, the Cultivation Permittee’s cannabis related activities, and any action taken by the Cultivation Permittee pursuant to this Section.
3. Agree to defend the City, at the Cultivation Permittee’s sole expense, in any action against the City or its agents, officers, or employees associated with the Cultivation Permit, the Cultivation Permittee’s cannabis related activities, or any action taken by the Cultivation Permittee pursuant to this Section.
4. Agree to reimburse the City for all costs, expenses, fees, and attorney fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the Cultivation Permit, the Cultivation Permittee’s cannabis related activities, or any action taken by the Cultivation Permittee pursuant to this Section. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.
K. A Cultivation Permittee shall keep the City and law enforcement updated with the names, addresses, and relevant criminal histories of all employees, facility managers, and other relevant parties for the indoor adult-use and/or medical cannabis cultivation facility at all times. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.
L. A Cultivation Permittee shall account for job creation in the City and shall commit to employing a workforce that resides in the City. A minimum of 50% of all employees employed by the Cultivation Permittee at the indoor adult-use and/or medical cannabis cultivation facility shall be residents of the City. A Cultivation Permittee shall use good faith efforts to comply with this subsection and shall report the residential composition of its workforce to the City every year and at any other time upon demand by the City Manager or the City Manager’s designee.
M. A Cultivation Permit issued pursuant to this Section may be transferred so long as the Permittee satisfies the City’s Cultivation Permit application requirements and is in good standing with the city under the following circumstances:
1. The transfer results from the existing Permittee changing the corporation type or business type on file with the California Secretary of State,
2. The transfer is necessary to reflect the death or disability of an owner and/or person on file with the City as being responsible for the permitted operations, or
3. To reflect a bona-fide transfer of the permit as a part of a transfer of the permitted operation.
N. All Cultivation Permit transfers are subject to the City Manager’s or his or her designee’s prior approval, which shall not be unreasonably withheld. A Cultivation Permit shall expire and be null and void 12 months after issuance to the Cultivation Permittee unless properly renewed. Upon payment of the applicable Cultivation Permit fees and passing the requisite Cultivation Permit inspections, a Cultivation Permittee that has maintained compliance with all City, State, and other applicable cannabis and business related laws shall be entitled to renew its Cultivation Permit subject to all prevailing laws at the time of renewal.
O. To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any adult-use and/or medical cannabis cultivation activities or for the activities of any adult-use and/or indoor medical cannabis cultivation facility.
(4) Conditional Use Permit. All parcels of real property in the Cultivation Zone upon which indoor adult-use and/or medical cannabis cultivation activities may occur must obtain a CUP from the City for all such activities.
(5) Oversight Consultants. The City Manager or the City Manager’s designee may establish an Oversight Consultant List to provide advice to City staff regarding the practical regulation of adult-use and medical cannabis activities in the City on an as needed basis. The Oversight Consultant List will consist of experts and experienced participants in various disciplines related to commercial adult-use and/or medical cannabis activities. The Oversight Consultants will not be a public body, will not meet on a regular schedule, and will not make or influence policy decisions by City staff. Rather specific individuals from the Oversight Consultant List will be contacted as necessary to provide specific advice based on their experience and expertise as a resource for City staff. The Oversight Consultants, as private citizens, may also proactively monitor adult-use and medical cannabis activities in the City and report findings as necessary to City staff.
(e) Enforcement.
(1) Any cannabis cultivation within the City in violation of this Section is hereby declared to be unlawful and a public nuisance.
(2) Any party who engages in a violation of this Section, or who owns, possesses, controls, or has charge of any parcel of real property in the City upon which a violation of the Section is maintained, shall be subject to the penalties and remedies provided by this Section.
(3) Any violation of this Section shall constitute a separate offense for each and every day the violation occurs or persists.
(4) Any person in violation of any provision of this Section shall be guilty of a misdemeanor and shall be punishable by a fine of up to $ 1,000 and up to six months imprisonment per offense.
(5) Any person in violation of any provision of this Section shall be punishable by an administrative fine of up to a $1,000 per offense.
(6) Any violation of this Section or any other City or State cannabis law by a Cultivation Permittee or a Cultivation Permittee’s agent is grounds for revoking the Cultivation Permittee’s Cultivation Permit. In addition, the City Manager or the City Manager’s designee may revoke a Cultivation Permit if any of the following occur subject to a reasonable opportunity for the permittee to cure the deficiency during a period of no more than 30 days:
A. The City Manager or the City Manager’s designee determines that the indoor adult-use and/or medical cannabis cultivation facility has failed to comply with this Section, any condition of approval, or any agreement or covenant as required pursuant to this Section.
B. The indoor adult-use and/or medical cannabis cultivation operations cease for more than 90 calendar days.
C. Ownership of the indoor adult-use and/or medical cannabis cultivation facility is changed or transferred to a third party, without prior City approval.
D. The indoor adult-use and/or medical cannabis cultivation facility fails to maintain 120 hours of security recordings.
E. The indoor adult-use and/or medical cannabis cultivation facility fails to provide remote access to the security cameras to the City Manager, the City Manager’s designee, the Code Enforcement Manager, or law enforcement, or fails to allow inspection of the security recordings, the activity logs, or of the premises by authorized City officials.
(7) Any decision regarding the revocation of a Cultivation Permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager’s designee (“Hearing Officer”). Said appeal shall be made by a notice of appeal from the person appealing within 15 days from the date of the decision. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the Cultivation Permit was improperly revoked. The Hearing Officer’s decision shall be final and binding upon the City and the appellant.
(8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.
[Ord. No. 539, Section 2, 11/23/15; Ord. No. 545, Section 2, 5/25/16; Ord. No. 556, Section 2, 12/14/16; Ord. No. 558, Section 2, 12/14/16; Ord. 553, Section 2, 5/24/17; Ord. No. 564, Section 2, 6/28/17; Ord. No. 579, Section 2, 12/13/17; Ord. No. 588, Section 2, 5/23/18; Ord. No. 602, Sections 2 - 4, 6/12/19.]