(a) Purpose. The purpose and intent of this Section is to regulate the testing of adult- use and medical cannabis prior to manufacturing or dispensing to the public 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 intends to be on the forefront of adult-use and medical cannabis research and testing. 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; 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) “City” means the City of Adelanto, California.
(3) “City Manager” means the individual duly appointed by a majority of the City Council to serve in the capacity as executive officer of the City on a permanent or interim basis.
(4) “CUP” means a Conditional Use Permit issued by the City in accordance with this Code.
(5) “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.
(6) “MAUCRSA” means the Medicinal and Adult-use Cannabis Regulation and Safety Act (MAUCRSA). (Bus. & Prof. Code, section 26000 et seq.)
(7) “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.” “Cannabis permittee” means a person or entity that has been issued a permit by the City, or another city in the State of California in accordance with the MAUCRSA or other applicable State laws, to participate in a commercial adult-use and/or medical cannabis activity, such as cultivation, manufacturing, distribution, transportation, testing, dispensing, or delivering.
(8) “Testing,” “Testing Facility” and “Testing laboratory” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
A. Accredited by an accrediting body that is independent from all other person involved in commercial cannabis activity in the state.
B. Licensed by the bureau.
(9) “Testing Permit” means a City permit to test the quality of adult-use and/or medical cannabis produced by cultivation and manufacturing Permittees pursuant to the terms and conditions of this Section and the conditions of approval for the permit.
(10) “Testing Permittee” means an applicant who has applied for and has been issued a Testing Permit by the City pursuant to the terms and conditions of this Section.
(c) Cannabis Testing Prohibited. All commercial cannabis testing within the City is prohibited except as expressly permitted by this Section.
(d) Cannabis Testing Conditionally Permitted. Commercial medical cannabis testing is conditionally permitted in the City only as expressly specified in this Section.
(1) Cannabis Testing Standards. Commercial cannabis testing, within the City, shall be in conformance with the following standards:
A. Commercial cannabis testing shall only be allowed upon application and approval of a Testing Permit and a CUP, or Minor Conditional Use Permit (CUPm) for proposed uses within existing buildings requiring no more than Tenant Improvements, in accordance with the criteria and process set forth in this Section and this Code.
B. Commercial cannabis testing is a conditionally permitted use only on properties within the City’s Cannabis Overlay Zones.
C. No commercial cannabis testing facility 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 commercial cannabis testing is, or will be, located to the nearest property line of those uses described in this Subsection.
D. A commercial cannabis testing facility may not be located within the same unit as an indoor cannabis cultivation facility, manufacturing facility, distribution facility, transportation facility, or dispensary.
E. Subject to the further requirements of this Section, only Type 8 State testing licenses, as specified in the MAUCRSA and Business and Professions Code section 26050, will be allowed to operate in the City.
F. Commercial cannabis testing is allowed only within fully enclosed and secure structures that are inaccessible to minors.
G. Commercial cannabis testing shall not exceed the square footage authorized pursuant to the applicable CUP.
H From any public right-of-way, there shall be no visible exterior evidence of any cannabis testing activity.
I. Cannabis testing 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.
J. Each commercial cannabis testing facility shall fully comply with all of the applicable restrictions and mandates set forth in State law. A commercial cannabis testing facility shall comply with all size requirements for such facility as imposed by State law. A cannabis testing facility shall not engage in any activities not allowed by a cannabis testing facility pursuant to State law. A cannabis testing facility shall comply with all horticultural, labeling, processing, and other standards required by State law.
K. There is no set restriction on the hours of operation of a commercial cannabis testing facility; however, restricted hours of operation may be established as a condition of approval of the Testing Permit or the applicable CUP.
L. All cannabis shall be kept in a secured manner during all business and nonbusiness hours.
M. A cannabis testing facility shall operate within a legal structure that is compliant with all applicable State and local laws.
N. A cannabis testing facility must pay all applicable sales taxes pursuant to all federal, State, and local laws.
O. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited on the premises of a cannabis testing facility. The term “premises” as used in this Subsection includes the actual cannabis testing building, as well as any accessory structures and parking areas. The cannabis testing 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.
P. Signage for a cannabis testing 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.
Q. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. A cannabis testing 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, alcoholic beverages shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any cannabis testing facility.
R. Physician services shall not be provided on the cannabis testing facility premises.
S. The building in which any cannabis testing 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 cannabis testing is also required.
T. A cannabis testing facility shall not grow, cultivate, process, distribute, transport, sell, dispense, or administer cannabis from the facility to the public. A cannabis testing facility shall not be operated as a cannabis dispensary.
U. The operators of a cannabis testing 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 cannabis testing facility. A cannabis testing 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.
V. Each cannabis testing 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 cannabis testing activities occur.
W. Each cannabis testing 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, seven days per week. The areas to be covered by the security cameras include, but are not limited to, the storage areas, testing 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 Code Enforcement Manager, 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 cannabis testing facility shall be secured with an alarm system that is operated and monitored by a reputable security company.
3. Entrance to the cannabis testing area, and all storage areas, shall be locked at all times, and under the control of the cannabis testing facility’s staff.
4. The entrances, and all window areas, shall be illuminated during evening hours. The cannabis testing 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 cannabis testing facility shall be appropriately secured and all cannabis securely stored.
X. Recordings made by the security cameras shall be made available to the City Manager, the City Manager’s designee, or law enforcement upon verbal request-no search warrant or subpoena shall be needed to view the recorded materials.
Y. 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 testing 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 such an 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.
Z. Each cannabis testing facility must employ full time quality control personnel.
AA. All cultivated cannabis, and manufactured cannabis products, must be properly tested prior to being dispensed to the public as required by the MAUCRSA, Business and Professions Code section 26100, and the State Department of Public Health regulations.
BB. Each Testing Permittee shall be independent from all other persons and entities involved in the cannabis industry including, but not limited to, cannabis cultivators, manufacturers, distributors, transporters, and dispensaries.
CC. A cannabis testing facility shall not acquire or receive cannabis or cannabis products except from a Cannabis Permittee. A Testing Permittee shall not cultivate, manufacture, distribute, transport, deliver, or dispense cannabis or cannabis products.
DD. A cannabis testing facility must adopt a standard operating procedure using methods consistent with general requirements for the competence of testing and calibration activities, including sampling. A Testing Permittee must use testing standards and methods established specifically for cannabis testing by the State.
EE. A cannabis testing facility must establish standard operating procedures that provide for adequate chain of custody controls for samples transferred to the cannabis testing facility for testing.
FF. A Testing Permittee must obtain testing samples according to a statistically valid sampling method. All testing samples must be picked independently and at random by the Testing Permittee. Testing samples cannot be pre-selected by outside persons or entities involved in the cultivation, manufacturing, distribution, transportation, delivery, or dispensing of cannabis.
GG. Cannabis from dried flower must, at minimum, be tested for concentration, pesticides, mold, and other contaminants. Cannabis extracts must, at minimum, be tested for concentration and purity of the product.
HH. A cannabis testing facility must analyze samples according to either the most current version of the cannabis inflorescence monograph (“Monograph”) published by the American Herbal Pharmacopoeia or other scientifically valid methodology that is equal or superior to the Monograph.
II. If a test result falls outside the specifications authorized by law or regulation, the cannabis testing facility shall follow a standard operating procedure to confirm or refute the original result.
JJ. A cannabis testing facility must destroy the remains of any sample of cannabis or cannabis product upon completion of the testing analysis.
KK. A cannabis testing facility must destroy cannabis batches whose testing samples indicate noncompliance with health and safety standards promulgated by the State Department of Public Health, unless remedial measures can bring the cannabis into compliance.
LL. A Testing Permittee shall issue a certificate of analysis for each sample tested to report whether the chemical profile of the sample conforms to the specifications for the sample for compounds. Compounds tested include, but are not limited to, the compounds listed under Business and Professions Code section 26100.
MM. A Testing Permittee shall issue a certificate of analysis for each sample tested to report whether the presence of contaminants in the sample does or does not exceed the levels that are the lesser of either the most current version of the Monograph or those set by the State Department of Public Health. Contaminants tested include, but are not limited to, the contaminants listed under Business and Professions Code section 26100.
NN. Each cannabis testing facility must analyze whether residual levels of volatile organic compounds in each sample tested are below the lesser of either the specifications set by the United States Pharmacopeia (U.S.P. Chapter 467) or those set by the State Department of Public Health.
OO. All testing devises used by a cannabis testing facility must be UL listed, or otherwise approved for the intended use by the City’s Building Official or the Fire Department. Any testing devices using only non-pressurized water are exempt from such approval.
PP. Unless otherwise prohibited, all testing devices used by a cannabis testing facility that utilize hydrocarbons or otherwise flammable solvents must operate in a closed loop, or in such a way that all solvent material is recovered in the process. All hazardous material must be disposed of in a manner that is compliant with all local, State, and federal guidelines for the disposal of hazardous materials.
QQ. Each cannabis testing facility must notify the State Department of Public Health and the City Manager, or the City Manager’s designee, within one business day after the receipt of notice of any kind that its accreditation has been denied, suspended, or revoked.
(2) Testing Permit Applications. All applicants wishing to obtain a Testing Permit from the City shall file an application with the City upon a form provided by the City and shall pay a Testing Permit Application Fee as established by the City. An application for a Testing Permit shall include at least the following information:
A. An estimate of the size of the proposed cannabis testing facility.
B. The address of the location for which the Testing Permit is sought. Only one Testing Permit will be issued per location.
C. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, testing areas, lighting, signage, et cetera.
D. A proposed security plan in compliance with the Cannabis Testing Standards.
E. The names, addresses, and relevant criminal histories of all potential employees, facility managers, and other relevant parties for the cannabis testing 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 cannabis testing 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 a cannabis testing facility will be operated on the property.
G. Evidence that the cannabis testing facility is independent from all other persons and entities involved in the cannabis industry, as required by Business and Professions Code section 26001.
H. Evidence that the cannabis testing facility follows the methodologies, ranges, and parameters that are contained in the scope of the accreditation for testing cannabis and cannabis products. The cannabis testing facility shall also comply with any other requirements specified by the State Department of Public Health.
I. Authorization for the City Manager or the City Manager’s designee to seek verification of the information contained within the application.
J. Evidence that the cannabis testing facility will be located in a legal structure that is compliant with all applicable State and local laws.
K. 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.
L. Any such additional and further information as is deemed necessary by the City Manager or the City Manager’s designee to administer this Section.
M. The City Manager or the City Manager’s designee shall conduct a background check of any applicant seeking a Testing Permit, including all potential employees and any person who may be a facility manager or otherwise responsible for the activities of the cannabis testing 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.
N. 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) Testing Permit. The following conditions apply to each Testing Permit:
A. A Testing 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 cannabis testing facility is not allowed by State or local law.
3. The applicant is not a legal representative of the cannabis testing 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, distribution, transportation, 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 Testing Permit shall be awarded by the City to eligible Testing Permit applicants in order of the Merit List as established by the City Manager or the City Manager’s designee. The number of Testing Permits shall be limited to those that may be reasonably accommodated within the Testing Zone as determined by the City Manager or the City Manager’s designee.
C. Before a Testing Permit can be issued to an applicant, Testing Permit fees must be paid to offset all related costs to the City, and the proposedcannabis testing facility location must pass all applicable inspections.
D. A Testing Permit is subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the cannabis testing activity occurs.
E. A Testing 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 cannabis testing activity and to protect the public.
F. All cannabis testing activities shall be subject to an excise tax to be established by the City and the voters.
G. A Testing 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 Testing Permittee may not own or have an ownership interest in any activity or facility related to cannabis cultivation, manufacturing, distribution, transportation, delivery, or dispensing.
I. A Testing 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 Testing Permit and the cannabis testing activity.
J. Testing Permittees who are in good standing with the City and who were previously authorized to engage in medical cannabis testing, may request an abbreviated application for a permit to engage in adult-use cannabis testing within the same testing facility, and they may operate under both permits in the same space, subject to state and local laws. The abbreviated permit process will allow Testing Permittees to submit certain previously approved application materials for their adult-use Testing Permit. The City reserves the right to request the Testing Permittee to submit a new Testing Permit application if the resubmitted materials do not satisfy the City’s Testing 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.
K. A Testing 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 Testing Permit, the Testing Permittee’s cannabis related activities, and any action taken by the Testing Permittee pursuant to this Section.
3. Defend the City, at the Testing Permittee’s sole expense, in any action against the City or its agents, officers, or employees associated with the Testing Permit, the Testing Permittee’s cannabis related activities, or any action taken by the Testing 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 Testing Permittee of its indemnification and reimbursement obligations.
4. 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 Testing Permit, the Testing Permittee’s cannabis related activities, or any action taken by the Testing Permittee pursuant to this Section.
L. Each Testing 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 cannabis testing 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.
M. Each Testing 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 Testing Permittee at the cannabis testing facility shall be residents of the City. A Testing 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.
N. A Testing Permit issued pursuant to this Section may be transferred so long as the Permittee satisfies the City’s Testing 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 the 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.
O. All Testing Permit transfers are subject to the City Manager’s or his or her designee’s prior approval, which shall not be unreasonably withheld. A Testing Permit shall expire and be null and void 12 months after issuance to the Testing Permittee unless properly renewed. Upon payment of the applicable Testing Permit fees and passing the requisite Testing Permit inspections, a Testing Permittee that has maintained compliance with all City, State and other applicable adult-use and/or medical cannabis and business related laws shall be entitled to renew its Testing Permit subject to all prevailing laws at the time of renewal.
P. 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 cannabis testing activities or for the activities of any cannabis testing facility.
(4) Conditional Use Permit. All parcels of real property in the Testing Zone upon which cannabis testing activities may occur must obtain a CUP from the City for all such activities.
(e) Enforcement.
(1) Any cannabis testing 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, possess, 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 Testing Permittee or a Testing Permittee’s agent is grounds for revoking the relevant Testing Permit. In addition, the City Manager or the City Manager’s designee may revoke a Testing 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 cannabis testing 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 cannabis testing operations cease for more than 90 calendar days.
C. Ownership of the cannabis testing facility is changed or transferred to a third party, without prior City approval.
D. The cannabis testing facility fails to maintain 120 hours of security recordings.
E. The cannabis testing 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 Testing 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 to revoke the Testing Permit. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the Testing 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. 548, Section 3, 10/12/16; Ord. No. 556, Section 5, 12/14/16; Ord. No. 558, Section 5, 12/14/16; Ord. No. 564, Section 5, 6/28/17; Ord. No. 588, Section 7, 5/23/18; Ord. No. 602, Sections 16 - 18, 6/12/19.]