For purposes of this chapter:
A. "Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis rudevalis, 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” also means the term as defined in California Health and Safety Code Section 11018 and is not limited to medical 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 chapter, “Cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the California Health and Safety Code.
B. “Cannabis business” means any business, organization or facility, regardless of form, whether operating for profit or not for profit, that cultivates, processes, stores, tests, packages, labels, distributes, transports, and/or sells, dispenses or delivers cannabis, cannabis products and/or devices for the use of cannabis or cannabis products. “Cannabis business” does not include personal medical or adult use cannabis cultivation authorized by state law and this Code. A cannabis business shall not be considered to be a religious, social or charitable organization exempt from the payment of business taxes under this chapter.
C. “Cannabis cultivation” means the seeding, planting, watering, warming, cooling, growing, harvesting, drying, curing, grading or trimming of cannabis.
D. “Cannabis distribution” or “Cannabis transport” means any activity involving the commercial procurement, sale, transfer and/or transport of cannabis and cannabis products from one cannabis business to another cannabis business for purposes authorized pursuant to state law.
E. “Cannabis nursery” means a cannabis business that produces only clones, immature plants, seeds and other agricultural products used specifically for cannabis cultivation.
F. “Cannabis processing” shall mean any activity involving the holding, storing, sorting, preparation, labeling and packaging of raw cannabis for retail sale; or involving the production, preparation, propagation, labeling, packaging or compounding of cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis.
G. “Cannabis product” means cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Cannabis product” also means cannabis products as defined by California Health and Safety Code Section 11018.1 and is not limited to medical cannabis products.
H. “Cannabis Retail or Sale” means and includes any sale, exchange, or barter transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from a cannabis business to a retail end customer and includes the delivery of cannabis or cannabis products to a retail end customer pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same. It does not include the return of cannabis or cannabis products by a cannabis business to the cannabis business from whom the cannabis or cannabis product was purchased.
I. “Cannabis testing” means any activity involving the testing of cannabis or cannabis products by a facility that is both of the following:
1. Accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state; and
2. Registered with the California State Department of Public Health.
J. “Engaged in a cannabis business” means the commencing, conducting, operating, managing or carrying on of a cannabis business and the exercise of corporate, franchise or other business powers, whether done as owner, or by means of an officer, agent, manager, employee, or other representative, within the city, whether operating from a fixed location within the city or coming into the city from an outside location to engage in cannabis business activities. By way of example, a person shall be deemed “engaged in cannabis business” within the city if such person or the person's officer, agent, manager, employee, or other representative acting on behalf of such person:
1. Maintains a fixed place of cannabis business within the city;
2. Owns, leases or otherwise has the legal right to occupy real property within the city for cannabis business purposes;
3. Regularly maintains a stock of tangible personal property within the city in the ordinary course of cannabis business;
4. Performs work or renders cannabis business services to other cannabis businesses or to retail cannabis customers located within the city.
K. “Gross receipts” means, except as otherwise provided in this chapter, the total amount of monetary consideration actually received or receivable by a cannabis business for performance of any act or service in providing, at wholesale or retail, cannabis and/or cannabis products, for which a charge is made or credit allowed including, but not limited to: membership dues, the value of monetary and in-kind contributions, payments, reimbursement of fees for cultivation, processing, distribution, delivery, retail, storing, exchanging, processing, delivering, making available, or transmitting of cannabis or cannabis products, any payments made, and anything else of value obtained by a cannabis business. Included in “gross receipts” shall be all receipts, cash, credits, and property of any kind without deduction of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Gross receipts shall not include the following:
1. Cash discounts where allowed and taken on sales;
2. Sales or other applicable state or local tax required by law to be added to the purchase price of cannabis or cannabis products and collected from the purchaser;
3. Such part of the sales price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; or
4. Whenever there are included within gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectable in a subsequent year, those amounts may be excluded from gross receipts in the year they prove to be uncollectable, provided, however, if all or any portion of such amounts excluded as uncollectible are subsequently collected they shall be included in gross receipt for the period when they are recovered.
L. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate or any other group or combination acting as a unit, which is conducting itself as a cannabis business.
M. “Space utilized in connection with cannabis cultivation or nursery” means any space or ground, floor or other surface area, whether horizontal or vertical (i.e., “stacking”) which is used for either a cannabis nursery and/or cultivation, or any combination of those activities, as well as for sorting or storing of any cannabis, products, supplies or equipment related to any such activities, no matter where such storage may take place or such storage space may be located.
N. “State” means the State of California.
O. “Tax Administrator” is the city's Director of Finance, or his or her designee.
[Ord. No. 594, Section 1, 12/12/18.]