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A. All commercial cannabis businesses shall be located in an approved land use district pursuant to Division IV of Title 19.
B. Distance Limitations:
1. The following distance limitations apply to commercial cannabis business types:
a. Testing laboratory: 100 feet from a school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth center;
b. Manufacturer: 100 feet from a school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth center;
c. Distributor: 100 feet from a school providing instruction in kindergarten or any grades I through 12, a day care center, or a youth center;
d. Retailer-Delivery Only: 100 feet from a school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth center:
e. Distance Limitation: Retailer-Storefront.
a. Retailer-Storefront uses shall be located at least:
i. 1,000 feet from a school providing instruction in any grades six (6) through twelve (12), and
ii. 600 feet from a school providing instruction in kindergarten or any grades one (1) through five (5), a day care center, or a youth center with primary youth center activities.
2. Calculation Methods.
a. A school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth center shall for purposes of this section be known as a “sensitive receptor”;
b. Distances specified in this section shall be the horizontal distance measured in a straight line from the property line of the sensitive receptor to the closest property line of the lot on which the commercial cannabis business is located, without regard to intervening structures.
c. Only sensitive receptors in existence at the time the City receives a Commercial Cannabis Permit application from the proposed Retailer-Storefront shall be considered.
d. One or more of the following factors may be considered by the City to determine if the sensitive receptor was in existence at the time of the City’s receipt of the Commercial Cannabis Permit application:
i. The sensitive receptor is open and operating;
ii. The sensitive receptor has a Chico City Business Tax Certificate for the specific location and sensitive use;
iii. The sensitive receptor has submitted a Business Tax Certification application to the City for the specific location and sensitive use and is undergoing construction or other tenant improvements at the specific location in question; and
iv. Other factors that may indicate a sensitive receptor was in existence as determined by the Community Development Director.
e. Notwithstanding the foregoing, an application for a Commercial Cannabis Permit may be deemed in compliance with this Section if evidence is submitted, to the satisfaction of the Community Development Director, that the sensitive receptor will cease operation at the location prior to the issuance of a building permit for the Retailer-Storefront location.
(Ord. 2553; Ord. 2589 §4)
A. Permit Required: All commercial cannabis businesses shall obtain and maintain a Commercial Cannabis Permit issued by the City of Chico pursuant to Title 5.42.
B. Compliance with City, Local and State Law. All commercial cannabis businesses shall comply with the standards set by State law, regulations and policies, and all city codes and resolutions, as well as any applicable requirements of the County of Butte.
C. Access Limited. For all commercial cannabis businesses, the general public is only allowed to access those areas of the premises which are identified in the site plan included with the Commercial Cannabis Permit as being open to public access. Only agents, applicants, managers, employees, and volunteers of the commercial cannabis permittee and agents or employees of the City, or other governmental agency are allowed in non-public access areas.
D. Hours of Operation:
a. Retailer-Storefront and Retailer-Delivery businesses may operate no earlier than 8:00 a.m. and no later than 9:00 p.m., unless otherwise more restrictive hours are stated in a Use Permit for such location, or unless zoning regulations specify more restrictive hours.
b. Manufacturers, distributors and testing laboratories may only accept commercial traffic to and from the premises between 8:00 a.m. and 7:00 p.m., unless zoning regulations specify more restrictive hours.
E. On-site Consumption Prohibited: Cannabis shall not be consumed by anyone on the premises in any form at any commercial cannabis business, unless explicitly authorized by a City ordinance, resolution, rule, regulation and/or pursuant to explicit terms of a Commercial Cannabis Permit, or City-approved Conditional Use Permit or Development Agreement.
F. Visibility: No manufacturing process, testing methodology, storage, or loading/ unloading cannabis or cannabis products, shall be visible from the exterior of any premises issued a Commercial Cannabis Permit. No cannabis or cannabis products shall be visible on part of any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time.
G. Inventory Tracking: Each commercial cannabis business shall have in place and at all times of operation of the business operate a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. The commercial cannabis business shall ensure that such information is compatible with the City’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager or designee prior to being used by the permittee and be the same system as specified in their commercial cannabis business permit.
H. Compliance with California Law: All cannabis and cannabis products sold, tested, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State of California and local regulations. All activities related to the purchase, sales, delivery, distribution, cultivation, testing, and manufacture of cannabis or cannabis products shall be conducted in conformity with state law.
I. Contact Information: Each commercial cannabis business shall provide the City Manager with the name, telephone number (both landline and mobile) of an on-site manager or owner to whom emergency notice may be provided at any hour of the day.
J. Signage and Notices:
a. In addition to the requirements otherwise set forth in this section, or as a term or condition imposed in a Use Permit, business identification signage for a commercial cannabis business shall conform to the requirements of state law and the City of Chico City Code, including, but not limited to, the requirements for a City sign permit, or applicable zoning laws regulating signs.
b. Each commercial cannabis business premises shall be visibly posted with clear and legible notices indoors indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited.
K. Age Restrictions:
a. Persons under the age of twenty-one (21) years shall not be allowed on the premises of a commercial cannabis business except as allowed under California law.
b. Persons under the age of twenty-one (21) years shall not be allowed to serve as a driver for a delivery service, except as allowed under California law pertaining to sales of cannabis for medicinal use.
c. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one (21) years of age.
L. Odor Control.
a. Odor control devices and techniques shall be incorporated as needed in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site.
b. Commercial cannabis businesses shall provide sufficient odor control devices and techniques, including but not limited to an odor absorbing ventilation and exhaust system utilizing air scrubbers or charcoal filtration systems, so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, at any adjoining use of the property not part of the commercial cannabis premises, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business.
c. Commercial cannabis businesses shall install and maintain the following equipment, or other equipment which the City Engineer or Public Works Director or Building Official determines is a more effective method or technology, to address such odor control:
i. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;
ii. An air system that creates negative air pressure between the commercial cannabis business’s interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.
d. All exhaust ventilation equipment is required to be appropriate for the use involved and must comply with the California Fire and Mechanical codes.
M. Display of Permit and City Business Tax Certificate. The original copy of the Commercial Cannabis Permit issued by the City pursuant to this Chapter, the City issued business license, and the state-issued Seller’s Permit, shall be posted inside the commercial cannabis business in a location readily-visible to any City, County or State employee, official, or agent authorized to enforce the City’s Code, or applicable cannabis-related laws.
N. Loitering Prohibited. The permittee of a commercial cannabis business shall prohibit loitering by persons outside on the premises, and is required to enforce same within its premises and adjacent public areas, including cooperating with the City’s law enforcement agency dispatched to enforce same. The placement and use of no loitering signage shall be included as part of any application submittal, and depicted on a business or operational plan.
O. Permits and other Approvals. Prior to the operation of a commercial cannabis business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits and approvals from the relevant City or County department or division which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate.
P. Adherence to Operating Procedures. Permittees shall adhere to all applicable operating procedures, including those submitted as part of the initial application process, and pursuant to those established in applicable State of California laws, regulations, and policies.
Q. Compliance with Disability Regulations. This Chapter does not exempt a commercial cannabis business from complying with all applicable local, State and federal laws and regulations pertaining to persons with disabilities.
R. Non-Discrimination. No commercial cannabis business may discriminate or exclude patrons in violation of local, State and federal laws and regulations.
S. Contact Information. Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide this information to all businesses and residences located within 300 feet of the commercial cannabis business.
T. Coordination Meetings. The owner, manager, and community relations representative from each commercial cannabis business holding a Commercial Cannabis Permit shall, if requested by the City Manager or designee, attend a quarterly meeting with the interested parties to discuss costs, benefits, and other community issues arising as a result of implementation of this Chapter.
U. Security Plan: Each business shall maintain on file with the City a security plan.
V. Restriction on Alcohol and Tobacco Sales, Dispensing or Consumption: No person shall cause, allow, or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products on or about the premises of a commercial cannabis business, except as allowed under state law.
W. Restriction of On-site Consumption: No person shall cause, allow, or permit the consumption of cannabis on-site of any commercial cannabis business.
(Ord. 2553; Ord. 2589 §4)
A. On-site Supervision: All commercial cannabis storefront retailers shall have a manager on the premises at all times during hours of operation.
B. Delivery Services. Storefront retailers also providing delivery shall comply with the operational requirements pertaining to Retailer - Delivery Only businesses in Section 19.75.150.
C. Site Access. Entrances into the retailer storefront shall be controlled at all times with either security personnel or electronic/mechanical entry system. Adult use storefront retailers without medicinal cannabis sales shall verify the age of all customers to ensure persons under the age of 21 are not permitted on the premises. Adult use medicinal sales storefront retailers shall verify the age and possession of valid doctor’s recommendation of all customers to ensure persons under the age of 18 are not permitted on the premises.
D. Medicinal Cannabis.
a. Commercial cannabis storefront retailers selling medicinal cannabis shall verify the age and all necessary documentation of each customer to ensure the customer is not under the age of 18 years and that the potential customer has a valid doctor’s recommendation;
b. Verify the identity and age of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the delivery only retailer; and
c. If a medicinal cannabis transaction,
i. Verify the validity of the qualified patient’s recommendation from a physician to use cannabis for medicinal purposes or primary caregiver’s status as a primary caregiver for the particular qualified patient, and
ii. 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.
E. Physician Evaluations Prohibited: No physician shall be allowed at any time to evaluate patients or customers for the issuance of a medicinal cannabis recommendation or medicinal cannabis identification card where applicable.
F. Complimentary Promotions Prohibited. A non-medicinal cannabis storefront retailer may not give away, or donate specific devices, contrivances, instruments, or paraphernalia necessary for consuming cannabis products, including, but not limited to, rolling papers and related tools, pipes, water pipes, and vaporizers. A storefront retailer may not give away samples or cannabis products free of charge.
G. Required Notifications. All cannabis storefront retailers shall notify qualified patients, primary caregivers, and customers (verbally or by written agreement) and by posting of a notice or notices conspicuously in at least 15-point type within the permitted premises that state the following:
a. “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.”
b. “Secondary sale, barter, or distribution of cannabis or cannabis products purchased from a permittee is a crime and can lead to arrest.”
c. “Patrons must not loiter in or near these premises and may not consume cannabis or cannabis products in the vicinity of this business or in any place not lawfully permitted. These premises and vicinity are monitored to ensure compliance.”
d. “Warning: the use of cannabis or cannabis products may impair a person’s ability to drive a motor vehicle or operate heavy machinery.”
e. “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. Location of Products. All cannabis concentrate inhaled products, including but not limited to, dabs, shatter, budder, wax, and butane hash oil, shall be stored behind the retail counter and out of the reach of customers at all times except when being handled by an employee during a sales transaction.
I. Added Artificial Flavor Prohibited. Retailers shall not sell cannabis products which contain an added characterizing flavor. For purposes of this Chapter, “characterizing flavor” means a taste or aroma, other than the taste or aroma of cannabis, imparted either prior to or during consumption. This includes, but is not limited to, tastes or aromas relating to food or drink of any sort; menthol; mint; wintergreen; fruit; chocolate; vanilla; honey; candy; cocoa; dessert; alcoholic beverages; herbs; or spices. Flavor agents consisting of terpenes of cannabis shall not be considered an added characterizing flavor. Such prohibition shall not apply to cannabis products which are manufactured as edible or topical products.
J. Educational Materials. A cannabis storefront retailer shall provide written educational materials to all customers:
a. Regarding each product sold, with information regarding the name and type of product, instructions for use, and expected effects.
b. 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, warnings 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.
K. Training Required: A cannabis storefront retailer shall require all employees who interact with public customers, as well as all management staff, to complete training to ensure competency of employees for their assigned functions within the first year of the retailers’ first year of operation, and within one year of each employee’s hire date thereafter. The retailer shall maintain records showing completion of each employee’s training for a period of two years and provide such records to the City Manager or his/her designee upon request.
(Ord. 2553; Ord. 2589 §4)
A. Point of Sale System. A cannabis delivery retailer shall facilitate the dispensing of cannabis or cannabis products with a technology platform owned by or licensed to the delivery retailer that uses point-of-sale technology to track and database technology to record and store the following information for each transaction involving the exchange of cannabis or cannabis products between the applicant and qualified patient, primary caregiver, or customer:
a. The identity of the individual dispensing cannabis or cannabis products on behalf of the permittee;
b. The identity of the qualified patient, primary caregiver, or customer receiving cannabis or cannabis products from the permittee;
c. The type and quantity of cannabis or cannabis products dispensed and received; and
d. The gross receipts charged by the licensee and received by the individual dispensing cannabis or cannabis products on behalf of the permittee for the cannabis or cannabis products dispensed and received.
B. Security Plan. Security plans developed pursuant to this Chapter shall include provisions relating to vehicle security and the protection of employees and product during loading and in transit.
(Ord. 2553; Ord. 2589 §4)
A. Visibility of Manufacturing Processes. From a public right-of-way, there shall be no exterior evidence of cannabis manufacturing allowed on the premises, except for any signage authorized by this Code.
B. Use of compressed gas. Any compressed gases used in the manufacturing process shall be approved by the Fire Chief. Any compressed gases shall not be stored on any property within the City of Chico in containers that exceed the amount approved by the Fire Chief. Each site or parcel subject to a Commercial Cannabis Permit shall be limited to a total number of tanks as authorized by the Fire Chief on the property at any time.
C. Use of solvents. Any solvents used in the manufacturing process shall be approved by the Fire Chief. Cannabis Manufacturers using solvents or gases for extraction shall use N-butane, isobutane, propane, or heptane, or other solvents or gases exhibiting low to minimal potential human-related toxicity approved by the Fire Chief. These solvents must be of at least ninety-nine percent purity and procedures showing that any extraction process must use them in a professional grade closed loop extraction system designed to recover the solvents and work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present.
D. Use of Gas Extraction Systems. 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.
a. Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.
b. Certification from an engineer licensed by the State of California must be provided to the Fire Chief for a professional grade closed loop system used by any commercial cannabis 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:
i. The American Society of Mechanical Engineers (ASME);
ii. American National Standards Institute (ANSI);
iii. Underwriters Laboratories (UL); or
iv. The American Society for Testing and Materials (ASTM).
c. Certification document must contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified.
E. Fire Chief Approval. Professional closed loop systems, other equipment used, the extraction operation, and all related facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in Building and Fire Codes, as adopted by the City.
F. Approved Non-solvent/gas Manufacturing Methods. Cannabis Manufacturers may use:
a. Heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create kief, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.
b. Food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts.
G. Ethanol Recapture. Ethanol shall be removed from all extracts in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.
H. Procedures and Protocols. Cannabis Manufacturers creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.
I. Training. 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, must have direct access to applicable material safety data sheets and handle and store the solvents and gases safely. Training materials and records shall be presented to the City upon request.
J. Assurance Testing. Parts per million for one gram of finished extract cannot exceed State standards for any residual solvent or gas when quality assurance tested.
K. Added Artificial Flavor Prohibited. Cannabis manufacturers shall not manufacture cannabis products which contain an added characterizing flavor. For purposes of this Chapter, “characterizing flavor” means a taste or aroma, other than the taste or aroma of cannabis, imparted either prior to or during consumption. This includes, but is not limited to, tastes or aromas relating to food or drink of any sort; menthol; mint; wintergreen; fruit; chocolate; vanilla; honey; candy; cocoa; dessert; alcoholic beverages; herbs; or spices. Flavor agents consisting of cannabis terpenes shall not be considered an added characterizing flavor. Such prohibition shall not apply to cannabis products which are manufactured as edible or topical products.
L. Annual California Fire Code Operational Permit. Cannabis manufacturers shall obtain annually and keep current at all times a Fire Code Operational Permit.
M. Sprinkler System. An automatic sprinkler system shall be installed throughout all buildings containing cannabis manufacturing uses, including but not limited to oil extraction operations and cannabis-infused product kitchens/bakeries.
N. Fire Alarm System. An automatic fire alarm system shall be provided through building containing cannabis manufacturing uses, including but not limited to oil extraction operations and cannabis-infused product kitchens/bakeries. The installed fire alarm system shall meet the requirements of emergency voice/alarm communication systems required by the California Fire Code and shall be designed and installed in accordance with National Fire Protection Association standards.
O. Fire Department Access. A key box shall be installed at an approved location to allow immediate access to the premises in the event of an emergency for life-saving and fire-fighting purposes, due to the potential hazards associated with manufacturing facilities. The box shall be of an approved type listed in accordance with UL 1037 and shall contain keys to gain necessary access as required by the fire code official.
(Ord. 2553; Ord. 2589 §4)
A. Visibility. From a public right-of-way, there shall be no exterior evidence of cannabis distribution except for any signage authorized by this Code.
B. Tamper Resistant Packaging. A cannabis distributor shall only procure, sell, or transport cannabis or cannabis products that are packaged and sealed in tamper-evident packaging that uses a unique identifier, such as a batch and lot number or bar code, to identify and track the cannabis or cannabis products.
C. Recyclable Materials. A cannabis distributor shall minimize materials that are non-recyclable or non-reusable.
D. Distribution Personnel.
a. A cannabis distributor shall maintain a database and provide a list of individuals and vehicles authorized to conduct transportation on behalf of the permittee, pursuant to the Commercial Cannabis Permit, within the City.
b. Individuals authorized to conduct transportation on behalf of the cannabis distributor shall have a current and valid California Driver’s License.
c. During transportation, the individual conducting transportation on behalf of the cannabis distributor shall maintain a copy of the Commercial Cannabis Permit and shall make it available upon the request of agents or employees of the City requesting documentation.
E. Distribution Vehicle. Cannabis or cannabis products shall be transported only in a vehicle that is:
a. Insured at or above the legal requirement in California,
b. Capable of securing (locking) the cannabis or cannabis products during transportation, and
c. Capable of being temperature controlled if perishable cannabis products are being transported.
(Ord. 2553; Ord. 2589 §4)
A. Cannabis testing shall take place within an enclosed building.
B. From a public right-of-way, there shall be no exterior evidence of cannabis testing except for any signage authorized by this Code.
C. All cannabis testing shall be performed in accordance with State law.
D. A cannabis testing laboratory shall adopt a standard operating procedure using methods consistent with general requirements established by the International Organization for Standardization, specifically ISO/IEC 17025, to test cannabis and cannabis products, and shall operate in compliance with the law.
E. A cannabis testing laboratory shall be accredited by a body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement.
F. A cannabis testing laboratory shall establish standard operating procedures that provide for adequate chain of custody controls for samples transferred to the testing laboratory for testing.
G. A cannabis testing laboratory shall destroy the remains of samples of any cannabis or cannabis product upon completion of analyses. Destruction shall be done in a manner compliant with State law and regulations.
H. Any testing that requires the use of solvents, compressed gas, or gas extraction systems for extraction must comply with the requirements for manufacturers in Section 19.75.160.B-I Operational Requirements-Cannabis Manufacturers.
(Ord. 2553; Ord. 2589 §4)