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A. Cannabis manufacturing shall only be permitted for Type 6, Type 7, or Type P state licenses for manufacturing facilities as such types are known at the time of adoption of this ordinance. Any subsequently created manufacturing state license types shall be considered by the Council and/or Planning Commission prior to being permitted to operate within the City. Type 6, Type 7, and Type P manufacturing uses shall be allowed only in those zone districts as defined in Chapter 19 of the Chico Municipal Code for cannabis manufacturing.
B. Any compressed gases used in the manufacturing process shall not be stored on any property within the City of Chico in containers that exceeds the amount which is approved by the Chico Fire Department and authorized by the regulatory permit. Each site or parcel subject to a commercial cannabis business permit shall be limited to a total number of tanks as authorized by the Chico Fire Department on the property at any time.
C. Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, ethanol and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.
D. If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in Section 5.42.313(F). The CO2 must be of at least ninety-nine percent purity.
E. Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.
F. Certification from an engineer licensed by the State of California, or by a certified industrial hygienist, must be provided to the Community Development Department for a professional grade closed loop system used by any commercial cannabis manufacturing manufacturer to certify that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including but not limited to:
1. The American Society of Mechanical Engineers (ASME);
2. American National Standards Institute (ANSI);
3. Underwriters Laboratories (UL); or
4. The American Society for Testing and Materials (ASTM).
G. The certification document must contain the signature and stamp of the professional engineer or industrial hygienist and serial number of the extraction unit being certified.
H. Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes.
I. Cannabis manufacturing facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.
J. Cannabis manufacturing facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.
K. Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely.
L. Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested.
M. Permittee shall be subject to initial review and annual review of compliance with the California Fire Code for issuance of an operational permit issued by the Fire Chief.
(Ord. 2552 §1, Ord. 2589 §2, Ord. 2598 § 1)
A. A distributor shall not store non-cannabis goods or non-cannabis accessories that are to be sold to another party on any licensed premises. Additionally, a distributor shall not distribute non-cannabis goods or non-cannabis accessories at a licensed premise. For the purposes of this section, non-cannabis goods are any goods that do not meet the definition of cannabis goods as defined in Section 5000(c) of the California Code of Regulations.
B. After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing.
C. A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor’s premises.
D. The distributor shall ensure that the batch size from which the sample is taken meets the requirements of state law, specifically the testing provisions within the California Code of Regulations.
E. A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded, and the recording kept available to state and local authorities for a minimum of 180 days, pursuant to Title 16, Section 5305 of the California Code of Regulations.
F. A distributor shall not transport cannabis or cannabis products to a licensed retail facility until and unless it has verified that the cannabis or cannabis products have been tested and certified by a testing lab as being in compliance with state health and safety requirements pursuant to Sections 5705, 5710 and 5714 of the California Code of Regulations.
(Ord. 2552 §1, Ord. 2589 §2)
A. Delivery personnel. A cannabis delivery retailer shall maintain a database and provide a list of the individuals and vehicles authorized to conduct vehicle dispensing, and a copy of the valid California driver’s license issued to the driver of any such vehicle on behalf of the cannabis delivery retailer to the Chief of Police.
B. Delivery requests. During delivery, a physical copy of the delivery request (and/or invoice) shall be in the vehicle at all times, and the driver shall make it available upon the request of agents or employees of the City requesting documentation.
C. Vehicle information. Prior to commencing operations, the following information shall be provided to the City:
1. Proof of ownership of the vehicle or a valid lease for all vehicles that will be used to deliver cannabis or cannabis products.
2. The year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for all vehicles that will be used to deliver cannabis goods.
3. Proof of insurance as required by Section 5.42.220 B.2. for all vehicles being used to deliver cannabis goods.
4. The licensee shall provide the City with the information required by this section in writing for any new vehicle that will be used to deliver cannabis goods prior to using the vehicle to deliver cannabis goods.
5. The licensee shall provide the City with any changes to the information required by this section in writing within thirty (30) calendar days.
D. Delivery vehicle. A cannabis delivery retailer shall only permit or allow delivery of cannabis or cannabis products in a vehicle that is:
1. insured at or above the legal requirement in California;
2. capable of securing (locking) the cannabis or cannabis products during transportation;
3. capable of being temperature controlled if perishable cannabis or cannabis products is being transported; and
4. does not display advertising or symbols visible from the exterior of the vehicle that suggest the vehicle is used for cannabis delivery or affiliated with a cannabis retailer.
E. Delivery sales records. A cannabis delivery retailer shall facilitate deliveries with a technology platform owned by or licensed to the non-storefront delivery only retailer that uses Global Positioning System technology to track and database technology to record and store the following information:
1. The time that the individual conducting vehicle dispensing on behalf of the storefront retailer departed the licensed premises.
2. The time that the individual conducting vehicle dispensing on behalf of the storefront retailer completed vehicle dispensing to the qualified patient, primary caregiver, or customer.
3. The time that the individual conducting vehicle dispensing on behalf of the storefront retailer returned to the licensed premises.
4. The route the individual conducting vehicle dispensing on behalf of the storefront retailer will travel between departing and returning to the permitted premises to conduct vehicle dispensing.
5. For each individual vehicle dispensing transaction, the identification of the individual conducting deliveries on behalf of the storefront retailer.
6. For each individual delivery transaction, the vehicle used to conduct vehicle dispensing on behalf of the storefront retailer permittee.
7. For each individual vehicle dispensing transaction, the identity of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the storefront retailer.
8. For each individual vehicle dispensing transaction, the type and quantity of cannabis or cannabis products dispensed and received.
9. For each individual vehicle dispensing transaction, the dollar amount to be charged by the storefront retailer and received by the individual conducting deliveries on behalf of the storefront retailer the cannabis or cannabis products dispensed and received.
F. Customer verification. The individual making deliveries on behalf of the cannabis delivery retailer shall for each transaction:
1. Verify the identity and age of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the delivery only retailer, and
2. If a medicinal cannabis transaction,
a. verify the validity of the qualified patient’s recommendation from a physician to use cannabis for medical purposes or primary caregiver’s status as a primary caregiver for the particular qualified patient, and
b. maintain a copy of the physician recommendation or Identification Card, as described in Health and Safety Code Sections 11362.71 through 11362.77, as may be amended from time to time, at its permitted business location for a period of not less than seven (7) years.
G. Required notifications. Delivery retailers shall notify qualified patients, primary caregivers, and customers in writing of the following:
1. “The sale or diversion of cannabis or cannabis products without a permit issued by the City of Chico is a violation of State law and the Chico City Code.”
2. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest.”
3. “Warning: the use of cannabis or cannabis products may impair a person’s ability to drive a motor vehicle or operate heavy machinery.”
4. “CALIFORNIA PROP. 65 WARNING: Smoking of cannabis and cannabis- derived products will expose you and those in your immediate vicinity to cannabis smoke. Cannabis smoke is known by the State of California to cause cancer.”
H. Educational materials. A cannabis delivery retailers shall provide written educational materials to all customers:
1. Regarding each product sold, with information regarding the name and type of product, instructions for use, and expected effects.
2. Regarding all edible cannabis products and cannabis concentrate products sold to a customer, which shall include information on safe storage and use of the product, warning against child access and exposure to the product, and warnings of potential side effects concerning brain development of individuals under the age of twenty-five years and potential harm to pregnant women.
(Ord. 2552 §1, Ord. 2589 §2)
A. Until such time that permits for retailer-storefront or non-storefront retail businesses are issued by the City, and the first of such business type within the City offers delivery services, out-of-City cannabis delivery services may conduct business within the City of Chico, subject to all other applicable operational requirements herein.
B. Businesses from outside of Chico offering delivery services inside the City shall cease delivery operations at the time of expiration of their annual business license renewal occurring after the first retailer-storefront or non-storefront retail business permit is issued by the City and such permittee offers delivery services. The City shall provide notice to legally operating delivery services of the date of required cessation of operations.
(Ord. 2552 §1, Ord. 2589 §2)
Cannabis delivery service businesses permitted to engage in delivery of cannabis and cannabis products are subject to the following requirements:
A. A licensed cannabis delivery service may only deliver medicinal and adult use cannabis and cannabis goods to residential addresses in the City of Chico. Deliveries to all commercial addresses are expressly prohibited.
B. A licensed cannabis delivery service shall not deliver medicinal or adult use cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.
C. A licensed cannabis delivery service shall only deliver medicinal and adult use cannabis goods to consumers during the hours of 8:00 a.m. and 9:00 p.m. Pacific Standard Time.
D. Deliveries of cannabis or cannabis goods to residential properties located within 600 feet of a public or private K-12 school shall not occur during school hours (8:00 a.m. to 3:00 p.m. weekdays).
(Ord. 2552 §1, Ord. 2589 §2)
A. A permitted commercial cannabis business shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the Police Chief or their designee(s), these security measures shall include, but shall not be limited to, all of the following:
1. Alarm system (perimeter, and fire).
2. Remote monitoring of alarm systems by licensed security professionals.
3. Perimeter lighting systems (including motion sensors) for after-hours security.
4. Perimeter security and lighting as approved by the Police Chief and the Community Development Director or their designee(s).
5. Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business.
6. Establishing limited access areas accessible only to authorized commercial cannabis business personnel.
7. Except for live growing plants at a retail-storefront use offered for sale as a whole live plant, all cannabis and cannabis products shall be stored in a secured and locked vault or vault equivalent. All safes and vaults shall be compliant with Underwriter Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products, including live plants that are being sold at retail shall be kept in a manner as to prevent diversion, theft, and loss. No part of such live plants shall be used for consumption or manufacture prior to retail sale of such live plant.
8. Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The commercial cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the Chief of Police or their designee(s), and that it is compatible with the City’s software and hardware. In addition, remote and real-time, live access to the video footage from the cameras shall be provided to the Chief of Police or their designee(s). Video recordings shall be maintained for a minimum of ninety (90) days and shall be made available to the Chief of Police or their designee(s) upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business and shall be capable of enlargement via projection or other means. Internet Protocol address information shall be provided to the Chico Police Department by the commercial cannabis business, to facilitate remote monitoring of security cameras by the Department or its designee.
9. Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.
10. Having a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services.
11. Any bars installed on the windows or the doors of the commercial cannabis business shall be installed only on the interior of the building.
12. Security personnel shall be on-site during business hours or alternative security as authorized by the Chief of Police or their designee(s), and must have a verified response security patrol when closed. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the Chief of Police or their designee(s), with such approval not to be unreasonably withheld.
13. Each commercial cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
14. Entrance areas are to be locked at all times and under the control of a designated responsible party that is either: (a) an employee of the commercial cannabis business; or (b) a licensed security professional.
15. Each commercial cannabis business shall have an accounting software system in place to provide point of sale data as well as audit trails or both product and cash, where applicable.
16. Each commercial cannabis business shall demonstrate to the Chief of Police, City Manager or their designees, compliance with the state’s track and trace system for cannabis and cannabis products, as soon as it is operational.
17. Each commercial cannabis business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.
18. Exterior vegetation shall be planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises.
19. Emergency access and emergency evacuation plans that are in compliance with state and local fire safety standards.
B. Each commercial cannabis business shall identify a designated security representative/liaison to the City of Chico, who shall be reasonably available to meet with the City Manager or their designee(s) regarding any security related measures and/or operational issues. The designated security representative/liaison shall, on behalf of the commercial cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the City Manager or their designee upon request that meets the following requirements:
1. Confirms that a designated Manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.
2. Identifies all managers of the commercial cannabis business and their contact phone numbers.
3. Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager’s office.
4. Confirms that burglar and fire alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.
5. Identify a sufficient number of licensed, interior and exterior security personnel who will monitor individuals inside and outside the commercial cannabis business, the parking lot, and any adjacent property under the business’ control.
6. Confirm that the licensed security personnel shall regularly monitor the parking lot and any adjacent property to ensure that these areas are: (a) free of individuals loitering or causing a disturbance; (b) are cleared of employees and their vehicles one-half hour after closing.
C. As part of the application and permitting process each commercial cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.
D. The commercial cannabis business shall cooperate with the City whenever the City Manager or their designee(s) makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this chapter.
E. A commercial cannabis business shall notify the Chief of Police or their designee(s) within twenty-four (24) hours after discovering any of the following:
1. Significant discrepancies identified during inventory.
2. Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business, or any crime occurring on the premises or involving the business.
3. The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the commercial cannabis business.
4. Any other breach of security.
F. Compliance with the foregoing requirements shall be verified by the City Manager or their designee prior to commencing business operations. The City Manager or their designee may supplement these security requirements once operations begin, subject to review by the City Manager or their designee if requested by the business owner.
(Ord. 2552 §1, Ord. 2589 §2)
A. Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities and shall maintain all invoices, receipts and other records supporting all revenues, expenses, assets, and liabilities. On no less than a quarterly basis, or at any time upon reasonable request of the City, each commercial cannabis business shall file a sworn statement detailing the commercial cannabis business’ gross receipts, revenue and number of sales during the previous three-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross revenues for each month, and all applicable taxes paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business’ operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and financial audit as determined by the City Manager, or their designee.
B. Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager upon request.
C. All records collected by a permittee pursuant to this chapter shall be maintained for a minimum of seven (7) years and shall be made available by the permittee to the agents or employees of the City of Chico upon request, except that private medical records shall be made available only pursuant to a properly executed search warrant, subpoena, or court order.
D. Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA), each commercial cannabis business shall allow City of Chico officials to have access to the business’s books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the City’s request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City’s software and hardware.
(Ord. 2552 §1, Ord. 2589 §2, Ord. 2598 § 1)
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