A. For purposes of this section, "cannabis production" includes cannabis cultivation, cannabis distribution, and cannabis manufacturing.
B. A conditional use permit is required for cannabis production, except for the following:
1. Cannabis manufacturing that complies with the following:
a. The use is limited to only packaging and labeling of cannabis or cannabis products, or producing edible or topical cannabis products using an infusion process;
b. Extraction is not being conducted; and
c. The gross receipts of the use are under $100,000 annually.
2. Cannabis distribution in accordance with a type-S cannabis distribution permit, as described in article VIII of chapter 5.150.
3. Cannabis distribution in accordance with a type-T cannabis distribution permit, as described in article VIII of chapter 5.150.
4. For the purposes of this section, "gross receipts" has the same meaning as provided in section 3.08.020.
C. Except as provided in subsection D, the conditional use permit, as required in subsection B, must be approved by the zoning administrator.
D. A conditional use permit, as required in subsection B, must be approved by the planning and design commission where the production site is within 600 feet of:
1. A park identified as a neighborhood park or community park in the city's most recently adopted Parks and Recreation Master Plan; or
2. A park not yet identified in the city's most recently adopted Parks and Recreation Master Plan.
E. The decision-maker may approve a conditional use permit for cannabis production based on the following findings:
1. The findings set forth in section 17.808.200.C; and
2. The proposed cannabis production will not result in undue concentration of cannabis production establishments. An undue concentration of cannabis production establishments will result if the following condition is met:
a. The proposed cannabis production use is located within the area bounded by Power Inn Road to the west, Folsom Boulevard to the north, and the city limits to the east and south; and will result in more than 2.5 million square feet of building floor space approved by a conditional use permit for cannabis production use in that area. Building floor space designated for a cannabis manufacturing use in a conditional use permit may be excluded from the 2.5 million square footage calculation.
3. If the proposed cannabis production includes cannabis manufacturing with a volatile solvent, the fire chief or designee has determined that the proposed cannabis manufacturing use is compatible with surrounding uses.
F. In any zone, cannabis production must comply with the following provisions:
1. Cannabis production must be within a fully enclosed building and must not be visible from the public right-of-way.
2. Notwithstanding the provisions of California Business and Professions Code section 26054(b), a cannabis production site cannot be located within a 600-foot radius of a school. For purposes of this section, "school" means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.
3. The cannabis production site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.
4. Cannabis production must comply with all applicable state and local laws.
5. Each property owner seeking a conditional use permit for cannabis production shall provide a neighborhood responsibility plan in order for the decision-maker to make the requisite findings identified in subsection E. The neighborhood responsibility plan must address the adverse impacts of cannabis distribution on the surrounding area. Compliance with the neighborhood responsibility plan shall be achieved through an agreement with the city, conditions of approval on the use permit, or through other means acceptable to the city.
6. Cannabis extraction must be performed in a manner that will not create explosive or ignitable mixtures, as approved by the fire chief or designee.
G. In the C-2 zone, cannabis production must comply with the following provisions:
1. Cannabis distribution and nonvolatile cannabis manufacturing cannot exceed a total of 6,400 square feet in area.
2. Cannabis distribution cannot be the only cannabis production use on the site.
H. Notice to city council. As soon as reasonably practicable after the zoning administrator or planning and design commission makes a decision on a conditional use permit required to establish cannabis production, the planning director shall report that decision to the mayor and the councilmember in whose district the project is located, by sending the report by electronic mail and confirming that each received it.
I. Procedures for call-up review. The mayor or the councilmember in whose district the project is located may call up for city council review any decision described in subsection H by filing a written request with the planning director within 10 business days of the zoning administrator's or planning and design commission's decision. If both a council member call-up and director-level decision appeal are pending on the same project, the city council will consider both at the same time. Notice of the city council hearing shall be given in the manner provided in section 17.812.010.A.2.a. The hearing before the city council shall be de novo.
J. Withdrawal of request for review. The requester under subsection I may withdraw that request. The withdrawal shall be noted on the next regularly scheduled meeting of the city council and shall be considered to have occurred on that date. Any other member of the city council shall have 10 days thereafter to file a request for call-up review. If the tenth day is a non-business day, the last day to file the request is the next business day. Noticing and hearing of the matter shall be as set forth in subsection I.
K. A conditional use permit issued in accordance with this section must specify whether the use allowed is for cannabis cultivation, cannabis distribution, or cannabis manufacturing. An addition of any use specified in this paragraph to the allowed uses specified in a conditional use permit is a modification of the terms and conditions of the conditional use permit subject to section 17.808.440. (Ord. 2024-0017 § 49; Ord. 2021-0024 § 26; Ord. 2020-0012 § 14; Ord. 2020-0006 § 8; Ord. 2018-0038 § 2; Ord. 2018-0022 § 2; Ord. 2017-0056 § 15)