HomeMy WebLinkAboutOrd 775 ORDINANCE NO. 775
AN ORDINANCE OF THE CITY COUNCIL OF CATHEDRAL CITY,
CALIFORNIA, AMENDING SECTIONS 3.48, 5.88, 13.80 OF THE
CATHEDRAL CITY MUNICIPAL CODE RELATING TO MEDICAL
CANNABIS
WHEREAS, in 1996, the voters of the State of California approved Proposition
215 (codified as California Health and Safety Code Section 11362.5 and entitled "The
Compassionate Use Act of 1996"), decriminalizing the use of cannabis for medical
purposes; and
WHEREAS, in 2003, the California Legislature adopted SB 420, the Medical
Marijuana Program, codified as California Health and Safety Code Section 11362.7 et.
seq., which permits Qualified Patients and their Primary Caregivers to associate
collectively or cooperatively to cultivate Medical Cannabis without being subject to
criminal prosecution; and
WHEREAS, in 2008, the Attorney General of the State of California set forth
Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use
("Guidelines"); and
WHEREAS, recently in October 2015, the State of California adopted AB 243,
AB 266, and SB 643 (the "Medical Marijuana Regulation and Safety Act" or the
"MMRSA") to clarify legal requirements pertaining to Medical Cannabis; and
WHEREAS, the MMRSA and California Supreme Court empowers local
incorporated cities and counties to enact laws or regulations pertaining to Medical
Cannabis cultivation, dispensing, manufacturing, or distribution pursuant to zoning
powers that the city's or county's governing body allows which include expanding and
allowing or restricting, banning and prohibiting such activity within the locality; and
WHEREAS, Cathedral City supports the right of patients with debilitating medical
conditions to have safe access to Medical Cannabis; and
WHEREAS, it is necessary for Cathedral City to adopt regulations for the
purpose of facilitating safe access of Medical Cannabis to patients; and
WHEREAS, Cathedral City currently regulates Medical Cannabis dispensaries in
the City pursuant to the Guidelines and State Law; and
WHEREAS, Cathedral City desires to license and permit the regulated cultivation
of Medical Cannabis pursuant to State Law;
WHEREAS, Cathedral City intends to adopt further regulations governing
Medical Cannabis Businesses and "Commercial Cannabis Activity," as such term is
defined in State Law; and
WHEREAS, it is the purpose and intent of this Chapter to regulate Medical
Cannabis in a manner that is consistent with State Law and which promotes the health,
safety, and general welfare of citizens of Cathedral City and limits impacts associated
with Medical Cannabis cultivation; and
WHEREAS, nothing in this Section shall be construed to allow persons to
engage in conduct that endangers others or causes a public nuisance as defined
herein, allow the use or diversion of cannabis for nonmedical purposes, or allow any
activity relating to the cultivation, distribution or consumption of cannabis that is
otherwise illegal under California State Law.
NOW, THEREFORE, THE CATHEDRAL CITY COUNCIL DOES ORDAIN AS
FOLLOWS:
Section 1. The above recitals are true and correct and incorporated herein.
Section 2. Chapter 3.48 of the Cathedral City Municipal Code is hereby amended
to read as follows, with additions underlined and deletions struck through:
Chapter 3.48 MEDICAL CANNABIS TAX
3.48.005 Purpose of Chapter.
This Chapter shall be known as the "Medical Cannabis Tax" and is enacted
solely to raise revenue for the general governmental purposes of the City and not
for purposes of regulation or raising revenues for regulatory purposes. All of the
Proceeds from the tax imposed by this Chapter shall be placed in the City's
general fund and used for the usual current expenses of the City.
3.48.010 Imposition of tax.
Every person engaged in operating or otherwise conducting a cannabis or
any Medical Cannabis Business, and regardless of whether such collective-Medical
Cannabis Business has a permit pursuant to Chapter 9.108 of this CGode, shall pay a
Medical Ccannabis tax of fifteen cents for each one dollar of Pproceeds
or fractional part thereof.
3.48.020 Definitions.
For purposes of this c hapter:
A. "Medical Cannabis Business" A "cannabis or marijuana collective"
medical purposes. means any Person engaged in Commercial Cannabis Activity,
pursuant to Sections 19300.5 (k), (ai) of the California Business and Professions
Code.
B. "Proceeds" means Ggross Rreceipts of any kind, including without
limitation, membership dues; the value of in-kind contributions; reimbursements
provided by memb s-Medical Cannabis Patients and Primary Caregivers as those
terms are defined in Chapter 5.88 regardless of form; any payments made; and
anything else of value obtained by a Medical Cannabis Business cannabis or
C. "Gross Receipts" except as otherwise specifically provided, means
the total amount actually received or receivable from all sales; the total amount or
compensation actually received or receivable for the performance of any act or
service, of whatever nature it may be, for which a charge is made or credit
allowed, whether or not such act or service is done as a part of or in connection
with the sale of materials, goods, wares or merchandise; discounts, rents,
royalties, fees, commissions, dividends, and gains realized from trading in stocks
or bonds, however designated. Included in "Gross Receipts" shall be all receipts,
cash, credits and property of any kind or nature, without any deduction there
from on account of the cost of the property sold, the cost of materials used, labor
or service costs, interest paid or payable, or losses or other expenses
whatsoever, except that the following shall be excluded there from: (1) Cash
discounts allowed and taken on sales; (2) Credit allowed on property accepted as
part of the purchase price and which property may later be sold, at which time the
sales price shall be included as Gross Receipts; (3) Any tax required by law to be
included in or added to the purchase price and collected from the consumer or
purchaser; (4) Such part of the sale price of any property returned by purchasers
to the seller as refunded by the seller by way of cash or credit allowances or
return of refundable deposits previously included in Gross Receipts; (5) Receipts
from investments where the holder of the investment receives only interest
and/or dividends, royalties, annuities and gains from the sale or exchange of
stock or securities solely for a person's own account, not derived in the ordinary
course of a business; (6) Receipts derived from the occasional sale of used,
obsolete or surplus trade fixtures, machinery or other equipment used by the
taxpayer in the regular course of the taxpayer's business; (7) Cash value of sales,
trades or transactions between departments or units of the same business; (8)
Whenever there are included within the Gross Receipts amounts which reflect
sales for which credit is extended and such amount proved uncollectible in a
subsequent year, those amounts may be excluded from the Gross Receipts in the
year they prove to be uncollectible; provided, however, if the whole or portion of
such amounts excluded as uncollectible are subsequently collected, they shall be
included in the amount of Gross Receipts for the period when they are recovered;
(9) Transactions between a partnership and its partners; (10) Receipts from
services or sales in transactions between affiliated corporations. An affiliated
corporation is a corporation: (a) The voting and non-voting stock of which is
owned at least eighty percent by such other corporation with which such
transaction is had; or (b) Which owns at least eighty percent of the voting and
non-voting stock of such other corporation; or (c) At least eighty percent of the
voting and non-voting stock of which is owned by a common parent corporation
which also has such ownership of the corporation with which such transaction is
had; (11) Transactions between a limited liability company and its member(s),
provided the limited liability company has elected to file as a Subchapter K entity
under the Internal Revenue Code and that such transaction(s) shall be treated the
same as between a partnership and its partner(s) as specified in Subsection (9)
above; (12) Receipts of refundable deposits, except that such deposits when
forfeited and taken into income of the business shall not be excluded when in
excess of one dollar; (13) Amounts collected for others where the business is
acting as an agent or trustee and to the extent that such amounts are paid to
those for whom collected. These agents or trustees must provide the finance
department with the names and the addresses of the others and the amounts paid
to them. This exclusion shall not apply to any fees, percentages, or other
payments retained by the agent or trustees.
3.48.030 Payment obligation.
All taxpayers subject to this sChapter must pay the full tax imposed by this
sChapter regardless of any rebate, exemption, incentive, or other reduction set forth
elsewhere in this cCode, except as enacted pursuant to Section 3.48.040 of this
Code or as required by California or federal law. Failure to pay the tax shall be subject
to penalties, interest charges, and assessments as the GCity Ccouncil may establish
and the cCity may use any or all other code enforcement remedies provided in the
Charter and this ECode. No provision in this ECode can lower the tax rate set forth in
this Ssection or otherwise reduce the amount of taxes paid hereunder unless the
provision specifically states that the reduction applies.
3.48.040 City CEouncil authorization to adjust rates.
The City Ceouncil may impose the tax authorized by this sChapter at a lower rate
and, notwithstanding Section 3.48.030 of this Code, may establish exemptions,
incentives, or other reductions, and penalties and interest charges or assessments for
failure to pay the tax in a timely manner, as otherwise allowed by the Charter and
California law. No action by the City CEouncil under this Ssection shall prevent it from
later increasing the tax or removing any exemption, incentive, or reduction, and
restoring the maximum tax specified in this sChapter.
3.48.050 Payment of tax does not authorize activity.
The payment of the tax required pursuant to this GChapter shall not be construed
as authorizing the conduct or continuance of any illegal business or of a legal business
in an illegal manner. Nothing in this GChapter implies or authorizes that any activity
connected with the distribution or possession of cannabis is legal under State Law
unless otherwise authorized and allowed in strict and full conformance to the provisions
of this GCode, including, without limitation, the provisions of Chapter 9.108 and Chapter
5.88. Nothing in this GChapter shall be applied or construed as authorizing the sale of
marijuana cannabis by any illegal or unlawful business, or any business in
violation of any ordinance of the City.
3.48.060 Medical Cannabis tax is not a sales tax.
The Medical Ccannabis tax provided for under the provisions of
this GChapter is not a sales or use tax and shall not be calculated or assessed as such.
The Medical Ceannabis tax shall not be separately identified or
otherwise specifically assessed or charged to any °e,Trmmber, Medical Cannabis Ppatient
or caretaker Primary Caregiver, as those terms are defined in Chapter 5.88.
3.48.070 Amendments and administration.
A. This GChapter as originally enacted was submitted to the voters for
approval and was approved by the voters by majority vote in 2014. Any amendment
to Section 3.48.010 to increase the tax above the rate expressly provided in such
Ssection shall not become effective until such amendment is approved by the voters.
The voters expressly authorize the Ccity Ceouncil to amend, modify, change, or revise
any other provision of this GChapter as the Ccity Ceouncil deems in the best interest of
the eCity.
B. The Coity Mmanager or the Ceity Mmanager's designee shall promulgate
rules, regulations, and procedures to implement and administer this Cehapter to ensure
the efficient and timely collection of the tax imposed by this Cchapter, including, without
limitation, formulation and implementation of penalties and interest to be assessed for
failure to pay the tax as provided.
C. The City Manager or the City Manager's designee shall annually
review the Medical Cannabis taxes imposed by this Chapter and publish a report
detailing the total amount of revenue raised from the Medical Cannabis tax. The
D. Pursuant to California Constitution Article XIIIB, the appropriation limit for
the Ccity is increased to the maximum extent over the maximum period of time allowed
under law consistent with the revenues generated by the Medical Coannabis and
marijuana tax.
3.48.080 Returns and remittances.
The tax shall be due and payable as follows:
A. All taxpayers subject to this Chapter shall, on or before the last day of
the month following the close of each calendar month or such different
reporting period as may be established by the City Manager or the City
Manager's designee, file a tax return with the City Manager or the City
Manager's designee on forms provided by the City Manager or the City
Manager's designee, of the total Proceeds and the amount of tax owed
for the preceding calendar month.
B. The return shall be filed whether or not Proceeds have been made or
taxes are owed during the month.
C. Each such return shall contain a declaration under penalty of perjury,
executed by the taxpayer or authorized agent, that to the best of the
signatory's knowledge, the statements in the return are true, correct and
complete.
D. The same basis for accounting used by a Medical Cannabis Business
for keeping books and records under Chapter 9.108 of this Code shall
be used for reporting and remitting under this Chapter.
E. At the time the return is filed, the full amount of the tax owed for the
preceding calendar month shall be remitted to the City Manager or the
City Manager's designee.
F. All taxes collected by a Medical Cannabis Business pursuant to this
Cchapter shall be separately held in trust for the account of the City
until payment thereof is made to the City Manager or the City Manager's
designee.
G. The City Manager or the City Manager's designee may establish either
shorter or longer reporting periods if the City Manager or the City
Manager's designee deems it necessary or desirable in order to insure
collection of the tax or to increase the efficiency of administration.
H. Returns and accrued tax payments are due immediately upon cessation
of business for any reason.
Returns and taxes not received by the City Manager or the City
Manager's designee on or before the due date as provided in this
Section are delinquent and subject to the penalties imposed under
Sections 3.48.090.
J. Returns filed and taxes remitted by mail shall be deemed timely filed
only if the envelope or similar container enclosing the returns and taxes
is addressed to the City Manager or the City Manager's designee, has
sufficient postage, and bears a United States postmark or a postage
meter imprint prior to midnight on the last day for reporting and
remitting without penalty. If the envelope or other container bears a
postage meter imprint as well as a United States Post Office
cancellation mark, the latter shall govern in determining whether the
filing and remittance are timely.
K. The City Manager or the City Manager's designee is not required to send
a delinquency or other notice or bill to any person subject to the
provisions of this Chapter; and failure to send such notice or bill shall
not affect the validity of any tax or penalty due under the provisions of
this Chapter.
3.48.090 Failure to pay tax.
A. Any person who fails or refuses to pay any tax required to be paid
pursuant to this Chapter on or before the due date shall pay penalties
and interest as follows:
1. A penalty equal to twenty-five percent of the amount of the tax in
addition to the amount of the tax, plus interest on the unpaid tax
calculated from the due date of the tax at a rate established by
resolution of the City Council; and
2. An additional penalty equal to twenty-five percent of the amount of the
tax if the tax remains unpaid for a period exceeding one calendar month
beyond the due date, plus interest on the unpaid tax and interest on the
unpaid penalties calculated at the rate established by resolution of the
City Council.
B. Whenever a check is submitted in payment of a tax and the check is
subsequently returned unpaid by the bank upon which the check is
drawn, and the check is not redeemed prior to the due date, the
taxpayer will be liable for the tax amount due plus penalties and interest
as provided for in this Section plus any amount allowed under State
Law.
C. The tax due shall be that amount due and payable from January 1, 2014
or the first date on which the Medical Cannabis Business first operated
in the City, whichever date occurred last, together with applicable
penalties and interest calculated in accordance with Subsection A of
this Section.
D. The City Manager may waive the first and second penalties of twenty-
five percent each imposed upon any person if:
1. The person provides evidence satisfactory to the City Manager that
failure to pay timely was due to circumstances beyond the control of the
person and occurred notwithstanding the exercise of ordinary care and
the absence of willful neglect, and the person paid the delinquent
business tax and accrued interest owed the City prior to applying to the
City Manager for a waiver.
2. The waiver provisions specified in this subsection shall not apply to
interest accrued on the delinquent tax and a waiver shall be granted
only once to the same person or entity during any twenty-four month
period.
3.48.100 Refunds.
A. No refund shall be made of any tax collected pursuant to this Chapter,
except as provided in this Section.
B. No refund of any tax collected pursuant to this Chapter shall be made
because of the discontinuation, dissolution, or other termination of a
Medical Cannabis Business.
C. Any person entitled to a refund of taxes paid pursuant to this Chapter
may elect in writing to have such refund applied as a credit against the
Medical Cannabis Business' taxes for the next calendar month.
D. Whenever the amount of any tax, penalty, or interest has been overpaid,
paid more than once, or has been erroneously or improperly collected
or received by the City under this Chapter, the overpayment may be
refunded as provided in subsections E-G of this Section, provided a
claim in writing under penalty of perjury stating the specific grounds
upon which the claim is founded is filed with the City Manager or the
City Manager's designee within three years of the date of payment. The
claim shall be on forms available from the City Manager or the City
Manager's designee.
E. The City Manager or the City Manager's designee shall have the right to
examine and audit all the books and business records of the claimant in
order to determine the eligibility of the claimant to the claimed refund.
No claim for refund shall be allowed if the claimant therefore refuses to
allow such examination of claimant's books and business records after
request by the City Manager or the City Manager's designee to do so.
F. The City Manager or the City Manager's designee shall initiate a refund
of any tax that has been overpaid or erroneously collected whenever the
overpayment or erroneous collection is uncovered by a City audit of tax
receipts. In the event that the tax was erroneously paid and the error is
attributable to the City, the entire amount of the tax erroneously paid
shall be refunded to the claimant. If the error is attributable to the
claimant, the City shall retain the amount set forth in this resolution
from the amount to be refunded to cover expenses.
3.48.110 Enforcement.
A. It shall be the duty of the City Manager to enforce each and all of the
provisions of this Chapter. The chief of police shall render such
assistance in the enforcement of this Chapter as may from time to time
be required by the City Manager.
B. For purposes of administration and enforcement of this Chapter
generally, the City Manager, with the concurrence of the City Attorney,
may from time to time promulgate administrative rules and regulations.
C. The City Manager shall have the power to audit and examine all books
and records of Medical Cannabis Businesses as well as persons
engaged in the operation of a Medical Cannabis Business, including
both state and federal income tax returns, California sales tax returns,
or other evidence documenting the Gross Receipts of a Medical
Cannabis Business or persons engaged in the operation of a Medical
Cannabis Business, for the purpose of ascertaining the amount of tax, if
any, required to be paid by the provisions of this Chapter, and for the
purpose of verifying any statements or any item thereof when filed by
any person pursuant to the provisions of this Chapter. If such Medical
Cannabis Business or person, after written demand by the City
Manager, refuses to make available for audit, examination or verification
such books, records, or equipment as the City Manager requests, the
City Manager may, after full consideration of all information within the
City Manager's knowledge concerning the Medical Cannabis Business
and its business and activities of the person so refusing, make an
assessment in the manner provided in Section 3.48.090.
D. The conviction and punishment of any person for failure to pay the
required tax shall not excuse or exempt such person from any civil
action for the tax debt unpaid at the time of such conviction. No civil
action shall prevent a criminal prosecution for any violation of the
provisions of this Chapter or of any State Law requiring the payment of
all taxes.
E. Any person violating this Chapter or any rules promulgated pursuant to
this Chapter, or knowingly or intentionally misrepresenting to any
officer or employee of the City any material fact in procuring a
certificate or document from the City shall be guilty of an infraction
violation and upon conviction thereof shall be punishable by a fine not
more than five hundred dollars, in addition to any other penalties or fees
imposed pursuant to this Chapter.
3.48.120 Debts; Deficiencies; Assessments.
A. The amount of any tax, penalties, and interest imposed by the
provisions of this Chapter shall be deemed a debt to the City and any
person operating a Medical Cannabis Business without first having
procured a business license pursuant to Chapter 3.28, Local License
pursuant to Chapter 5.88, and conditional use permit pursuant to
Chapter 9.108 of this Code shall be liable in an action in the name of the
City in any court of competent jurisdiction for the amount of the tax, and
penalties and interest imposed on such Medical Cannabis Business.
B. Any and all alleged deficiencies identified by the City Manager shall be
addressed in accordance with Section 3.26.150 of this Code; except that
the City Manager may engage in any of the privileges or assume any of
the duties delegated to the Tax Administrator.
Section 3. Chapter 5.88 of the Cathedral City Municipal Code is hereby amended
to read as follows with additions underlined and deletions struckthrough:
Chapter 5.88 Medical Cannabis Businesses
5.88.010 Purpose and intent.
A. This Chapter shall provide for the regulation and licensing of Medical Cannabis
Businesses throughout the City in conformance with applicable state and local
laws and regulations pertaining to Medical Cannabis.
B. The City Council finds that it is necessary for Cathedral City to adopt local
licensing standards for Medical Cannabis Businesses for the purpose of
facilitating safe access of Mmedical Coannabis to Medical Cannabis Ppatients.
C. The purpose of this Chapter is to regulate all Commercial Cannabis Activity in
Cathedral City, as defined in the MMRSA, to the extent authorized by State Law
and in a manner designed to minimize negative impacts on the City and
neighboring uses, and promote the health, safety, morals, and general welfare of
residents and businesses within the City.
5.88.015 Findings.
The City Council finds and determines that local licensing standards pertaining to
Medical Cannabis Business activities are necessary to protect the public health and
safety. The City Council further finds that public health and safety is best served by the
adoption of the ordinance codified in this Chapter.
5.88.020 Relationship to other laws.
Except as otherwise specifically provided herein, this Chapter incorporates the
requirements and procedures set forth in the MMRSA. In the event of any conflict
between the provisions of this Chapter and the provisions of the MMRSA or any other
applicable state or local law, the more restrictive provision shall control.
5.88.025 General definitions.
Unless otherwise defined herein, the terms in this Chapter shall have the same
meaning as set forth in the MMRSA and any rules promulgated pursuant thereto. In
addition, the following terms shall be defined as follows:
A. "Advertising" means the act of providing consideration for the publication,
dissemination, solicitation, or circulation, visual, oral, or written, to induce
directly or indirectly any Person to patronize a particular Medical Cannabis
Business, or to purchase particular Medical Cannabis. "Advertising"
includes marketing, but does not include packaging and labeling.
"Advertising" proposes a commercial transaction or otherwise constitutes
commercial speech.
B. "Applicant" has the same meaning as that term is defined by Section 19300.5(b)
of the California Business and Professions Code.
C. "Cannabis Concentrate" has the same meaning as the term is defined by
Section 19300.5(g) of the California Business and Professions Code.
D. "Child-Resistant Packaging" means special packaging that is:
1. Desiqned or constructed to be significantly difficult for children under
five years of age to open and not difficult for normal adults to use
properly as defined by 16 C.F.R. 1700.20 (1995);
2. Opaque so that the packaging does not allow the product to be seen
without opening the packaging material; and
3. Re-sealable for any product intended for more than a single use or
containing multiple servings.
E. "City" means Cathedral City, California.
F. "City Manager" shall mean the City Manager of the Ceity or duly
authorized designee.
G. "Commercial Cannabis Activity" has the same meaning as that term is defined by
Section 19300.5(k) of the California Business and Professions Code, including
the exclusion in Section 19319 of the California Business and Professions Code
related to Qualified Patients and Primary Caregivers, and extending that
exclusion to ID Card Holders.
H. "Community Development Director" or "Director" shall mean the community
development director of the City of Cathedral City or duly authorized designee.
I. "Container" means the sealed package in which Medical Cannabis or
Manufactured Cannabis is placed for sale and that has been labeled
according to the requirements set forth in this Chapter.
J. "Contaminant" means any pesticide, residual solvent or microbiological
organism or product thereof.
K. "Cultivation Site" has the same meaning as that term is defined by Section
19300.5(x) of the California Business and Professions Code.
L. "Delivery" has the same meaning as that term is defined by Section 19300.5(m)
of the California Business and Professions Code.
M. "Dispensary" has the same meaning as that term is defined by Section
19300.5(n) of the California Business and Professions Code, except a facility
that does not sell Medical Cannabis or Medical Cannabis Products shall not
qualify as a Dispensary.
N. "Edible Cannabis Product" has the same meaning as that term is defined by
Section 19300.5(s) of the California Business and Professions Code.
"Enclosed Locked Structure," means a structure that: 1) docs not allow for the
visibility of the interior from the outside; 2) is secured with a lock; 3) is completely
may include greenhouses and accessory buildings. All Enclosed Locked
Structures shall comply with the City Building Codc, Fire Code, and all other
ap able-laws
"Financial Interest" has the same mcaning as that term is defined in Section
650.1 of the Business and Professions Code.
0. "Exit-Package" means a sealed Container or package provided at the retail
point of sale, in which any Medical Cannabis or Medical Cannabis Product
already within a Container are placed.
P. "Good Cause" for purposes of refusing or denying an initial conditional use
permit Local License issuance, for revoking a conditional—use—permit Local
License, or for refusing or denying a conditional use permit Local License
renewal or reinstatement, means:
1. The Applicant or Licensee or Applicant has violated any of the terms,
conditions or provisions of this Chapter, of State Law, of any regulations and
rules promulgated pursuant to State Law, any applicable local rules and
regulations, or any special terms or conditions placed upon its conditional use
permit, State License, or Local License;
2. The Licensed Premises has been operated in a manner that adversely affects
the public health, safety or welfare or the safety of the immediate
neighborhood in which the establishment is located;
3. The Applicant or Licensee or Applicant has knowingly made false
statements, misrepresentations or material omissions on an application form,
renewal form, or any other document submitted to the City;
4. The Applicant or Licensee's criminal history does not indicate that the
Applicant or Licensee is of Good Moral Character; or the Applicant or
Licensee has been convicted of an offense that is substantially related to the
qualifications, functions, or duties of the business or profession for which the
application is made; except that if the Local Licensing Authority determines
that the Applicant or Licensee is otherwise suitable to be issued a Local
License and granting the Local License would not compromise public safety,
the Local Licensing Authority shall conduct a thorough review of the nature of
the crime, conviction, circumstances, and evidence of rehabilitation of the
Applicant or Licensee, and shall evaluate the suitability of the Applicant or
Licensee to be issued a Local Lticense based on the evidence found through
the review. In determining which offenses are substantially related to the
qualifications, functions, or duties of the business or profession for which the
application is made, the Local Licensing Authority shall consider the factors
as set forth in Section 19323(b)(5) of the California Business and
Professions Code;
5. The Licensee or Applicant is employing or allowing to volunteer or-being
-_ .. _ - _ __ any Person whose criminal history indicates
that Person is not of Good Moral Character;
6. The Applicant or Licensee fails to allow inspection of the security recordings,
activity logs, or business records of the Licensed Premises by City officials;
7. An Owner of tlhe Applicant or Licensee is owned by, or has an officer or
director who is a licensed Pphysician making recommendations providing
Written Documentation to Qualified Patients for Medical Cannabis; or
8. The Applicant or Licensee operated a Medical Cannabis Business in violation
of Title 5 or Title 9 of this Code.
Q. "Good Moral Character" means having a personal history that demonstrates the
propensity to serve the public in the licensed area in a manner that reflects
openness, honesty, fairness, and respect for the rights of others and for the law.
In determining Good Moral Character, the following standards shall apply:
1. A judgment of guilt in a criminal prosecution or a judgment in a civil action
shall not be used, in and of itself, as proof of an individual's person's lack of
Good Moral Character. Such judgment may be used as evidence in the
determination, and when so used the individual person shall be notified and
shall be permitted to rebut the evidence by showing that at the current time he
has the ability to, and is likely to serve the public in a fair, honest and open
manner, that he is rehabilitated, or that the substance of the former offense is
not substantially related to the occupation or profession for which he seeks to
be licensed.
2. Notwithstanding Chapter 2 of Division 1.5 of the California Business and
Professions Code, a prior conviction where the sentence, including any
term of probation, incarceration, or supervised release is completed for
possession of, possession for sale, sale, manufacture, transportation,
or cultivation of a controlled substance, is not considered substantially
related, and shall not be the sole ground for denial of a Local License,
except that any of the following convictions shall be deemed
substantially related and may be the sole grounds for denying a Local
License or conditional use permit: Except in the event of:
a. A felony conviction for hiring, employing, or using a minor in transporting,
carrying, selling, giving away, preparing for sale, or peddling, any
controlled substance to-a-miner; or
b. A felony conviction for selling, offering to sell, furnishing, offering to
furnish, administering, or giving any controlled substance to a minor; or{#}
c. A felony conviction for drug trafficking with enhancements pursuant to
Sections 11370.4 or 11379.8 of the California Health and Safety
Business and Professions Code_. - - • - - :•-* - - - -
where the sentence, including any tcrm of probation, incarceration, or
supervised release is completed for possession of, possession for sale,
denial of a license.
3. Conviction for any controlled substance felony subsequent to Local Licensurc
issuance of a Local License shall be grounds for revocation of a Local
License or denial of the renewal of a Local License.
R. "Identification Card" or "ID Card" means a valid identification card issued
pursuant to Section 11362.7 et. seq. of the California Health and Safety Code.
S. "Identification Card Holder" or "ID Card Holder" means an individual who
is a Qualified Patient who has applied for and received a valid ID Card
pursuant to Article 2.5 of Chapter 6 of Division 10 of the California Health
and Safety Code.
T. "Licensed Premises" means the premises specified in an application for a Local
License or modification of Licensed Premises under this Chapter, which is are
owned or in possession of the Applicant or Licensee and within which the
Applicant or Licensee is authorized to cultivate, manufacture, distribute, test, or
sell Medical Cannabis in accordance with the provisions of this Chapter, Chapter
9.108, the MMRSA, and any rules adopted thereto.
U. "Licensee" means a Pperson who has been issued a Local License pursuant to
this Chapter and a conditional use permit issued pursuant to Chapter 9.108.
V. "Limited Access Area" means and shall be a building, room or other area upon
that is part of the Licensed Premises where Mmedical Ccannabis is grown,
cultivated, stored, weighed, displayed, packaged, or sold to other Medical
Cannabis Businesses, under control of the Licensee, with limited access to only
authorized personnel.
W. "Local License" means a business license granted by the Local Licensing
Authority, pursuant to this Chapter.
X. "Local Licensing Authority" means the City Manager or its designee.
Y. "Manufactured Cannabis" has the same meaning as that term is defined by
Section 19300.5(ae) of the California Business and Professions Code.
Z. "Manufacturing Site" has the same meaning as that term is defined by
19300.5 (af) of the California Business and Professions Code.
AA. "Medical Cannabis" has the same meaning as that term is defined by Section
19300.5(ag) of the California Business and Professions Code and shall include
Manufactured Cannabis.
BB. "Medical Cannabis Business" means any Person engaged in Commercial
Cannabis Activity pursuant to Sections 19300.5 (k). (ai) of the California
Business and Professions Code - -- - - L., -- - - - - - - - - -
Cooperative.
Use as may be amended from time to time, that is on file in the office of the City
••- - - - - -
" -e• 1 I •• - ze A
CC."Medical Cannabis Patient" means both a Qualified Patient without an
Identification Card and an ID Card Holder.
DD.Medical Marijuana Regulation and Safety Act" or "MMRSA" means Chapter 3.5
of Division 8 of the California Business and Professions Code, Section 147.5 of
the California Labor Code, Section 31020 of the California Revenue and
Taxation Code, Section 12029 of the California Fish and Game Code,
Sections 11362.769 and 11362.777 of the California Health and Safety Code,
and Section 13276 of the California Water Code.
EE. "Owner" means, pursuant to Section 19300.5(b) of the California Business and
Professions Code, owner of a Medical Cannabis Business, including all Ppersons
or entities having ownership interest other than a security interest, lien, or
encumbrance on property that will be used by the Medical Cannabis Business
facility.
1. If an the-Owner is an entity, "Owner" includes within the entity each Pperson
participating in the direction, control, or management of, or having a financial
interest in, the proposed facility Medical Cannabis Business.
2. If an Owner the Applicant is a publicly traded company, "Owner" means the
chief executive officer or any Person with an aggregate ownership interest of
5 percent or more in such company.
FF."Person" has the same meaning as that term is defined by Section 19300.5(aj) of
the California Business and Professions Code.
GG."Physician," as used in this Chapter, shall mean an individual who possesses
a license in good standing to practice medicine or osteopathy from the
state of California mean a medical doctor licensed by the state of California to
practice as such.
HH."Primary Caregiver" shall have the meaning set forth in Section 11362.7(d) of
the California Health and Safety Code.
II. "Protected Health Information" means documentation of a Medical Cannabis
Qualified Patient's or ID Card holder's medical history or condition, pursuant to
45 CFR § 160.103, other than a Physician's recommendation Written
Documentation, an ildentification eCard issued pursuant to California Health
and Safety Code Section 11362.7 et seq., or the written designation of a Primary
Caregiver by a Medical Cannabis Qualified Patient or ID Card holder. Protected
Health Information shall not include information conveyed by a Primary Caregiver
or , Qualified Medical Cannabis Patient to a Dispensary
regarding such Qualified Medical Cannabis Patient's medical condition,
information conveyed by a Primary Caregiver or Medical Cannabised
Patient or ID Card holder to a Dispensary regarding efforts to ameliorate or
otherwise address symptoms associated with such Qualified Medical Cannabis
Patient's or ID Card holder' medical condition, or information regarding the risks
and benefits of Medical Cannabis provided to a Primary Caregiver, Qualified or
Medical Cannabis Patient .
JJ."Qualified Patient" shall have the meaning set forth in Section 11362.7(f) of the
California Health and Safety Code.
KK. "Restricted Access Area" means all an areas where Medical Cannabis is sold,
possessed for sale, displayed, or dispensed for sale to Qualified Medical
Cannabis Patients, ID Card holders, and Primary Caregivers and where ne ene
LL. "Seed to Sale Software" means the track and trace inventory control system
established pursuant to Section 19335 of the California Business and
Professions Code that utilizes a unique identifier pursuant to Section
113672.7(d) 11362.777(e) of the California Health and Safety Code and tracks
transfers of Medical Cannabis from seed through sale. Until such a time that the
State of California implements Section 19335 of the California Business and
Professions Code, the "Seed to Sale Software" shall refer to the third-party
tracking software required by Section 5.86.065(A)(156) of Cathedral City
Municipal Code.
MM. "State Law(s)" shall mean and include California Health and Safety Code
Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety
Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act); the
California Attorney General's Guidelines for the Security and Non-Diversion of
Marijuana Grown for Medical Use issued in August, 2008, (hereinafter
"Guidelines") as such guidelines may be revised from time to time by action of
the Attorney General; the MMRSA, and all other applicable laws of the state of
California.
NN. "State License" has the same meaning as that term is defined by Section
19300.5(ak) of the California Business and Professions Code.
00. "State Licensing Authority" shall mean the Bureau of Medical Marijuana
Regulation within the Department of Consumer Affairs, the State Department of
Public Health, or any other state agency responsible for the issuance, renewal, or
reinstatement of a State Lticense issued under the ""RSA pursuant to
Chapter 3.5 of Division 8 of the California Business and Professions Code
or the any State agency authorized to take disciplinary action against such State
Liicense.
PP. "Unrecognizable" means Medical Cannabis or Medical Cannabis plant
material rendered indistinguishable from any other plant material.
QQ. "Written Documentation" shall have the meaning set forth in Section
11362.7(i) of the California Health and Safety Code.
5.88.030 Local License in addition to business license or other permit.
The Local License required under the terms of this Chapter shall be in addition
and supplemental to any additional business license or any permit required by any
ordinance of the City. . . ..... - - - - - - - - - - - - - - - - - - . - - - -
this Code.
5.88.035 Local License required.
A. On and after July 1, 2016, it shall be unlawful to operate any Medical Cannabis
Business in Cathedral City without first having obtained a Local License under
this Chapter.
B. Notwithstanding the above, a Medical Cannabis Business that was issued a
conditional use permit before January 1, 2016 and has submitted applications for
a Local License under this Chapter on or before July 1, 2016 may continue in
operation on and after July 1, 2016, provided that the Medical Cannabis
Business is in good standing, until final action by the City on the business's Local
License application.
C. Nothing in this Ssection shall permit a Medical Cannabis Business to operate at
any time in a manner that is in violation of Section 5.88.065 of this Chapter, the
City Building Code, City Fire Code, and all other applicable state and local laws.
D. Except as otherwise permitted by the MMRSA, beginning January 1, 2018, it
shall be unlawful for a Medical Cannabis Business to operate in the City unless it
has been granted a State License.
E. Notwithstanding subsection 5.88.035(13D), any Medical Cannabis Business that
has: (1) submitted an application for a State License prior to January 1, 2018 and
(2) been in operation and good standing on or before January 1, 2018 may
continue operations until its State License has been approved or denied by the
State Licensing Authority. A Medical Cannabis Business shall be considered to
be "in operation," "in good standing," and "operating in compliance with local
zoning ordinances and other state and local requirements" for purposes of this
Ssection and Section 19321(c) of the California Business and Professions Code
if the business has been issued a conditional use permit in accordance with Title
9 of this Code - . - - 6. e - - — . - - - — - - - - - -
City Code, is exercising any of the privileges of its permit, and has applied for a
Local License on or before January 1, 2018.
F. All Medical Cannabis Businesses shall acquire an approved conditional use
permit pursuant to Chapters 9.108 and 9.72 of the Cathedral City Municipal Code
prior to commencing operations.
5.88.040 Local License application process.
A. The Local Licensing Authority shall not accept an application for a Local License
prior to April 1, 2016.
B. All applications for Local Licenses required pursuant to this Chapter shall be
made upon current forms prescribed by the Local Licensing Authority. All
applications for Local Licenses must include application and permitting fees as
established by resolution and adopted by the City Council as amended from time
to time.
C. The Local Licensing Authority shall not receive or act upon an application for the
issuance of a Local License pursuant to this Chapter until it is established that
the Applicant is, or will be, entitled to possession of the Licensed Ppremises for
which application is made. Evidence of lawful possession consists of properly
executed deeds of trust, leases, evidence of ownership of the Licensed
Ppremises, or other written documents acceptable to the Local Licensing
Authority.
D. The Licensed Premises shall only be the geographical area that is specifically
and accurately described in executed documents verifying lawful possession.
Licensees are not authorized to relocate to other areas or units within a building
structure without first filing a change of location or modification of Licensed
Ppremises application, obtaining a conditional use permit for the new Licensed
Ppremises, and obtaining approval from the Local Licensing Authority.
E. Licensees are not authorized to sublet any portion of a Licensed Premises for
any purpose, unless all necessary applications to modify the existing Licensed
Premises to accomplish any subletting have been approved by the Local
Licensing Authority.
F. Applicants must submit a complete application to the Local Licensing Authority
before it will be accepted. An Applicant shall have an opportunity to cure any
incomplete application within thirty (30) days of written notice of incompleteness
by the Local Licensing Authority. The Local Licensing Authority may impose
additional requirements necessary for making a determination of completeness
and further submission of the application to the Local Licensing Authority for
consideration of approval.
G. All applications must be accompanied by a full remittance for the whole amount
of the application and permit fees.
H. The chief of police or designee shall conduct a criminal background check of any
Aapplicant for a Medical Cannabis Bu siness Local License, including background
checks on any Pperson that is an Owner of the Applicant Medical Cannabis
Business, any Pperson who is managing or is otherwise responsible for the
activities of the Medical Cannabis Business, and any officer or director, and shall
prepare a report to the Community Development Ddirector (for incorporation
into the report provided to the Local Licensing Authority) on the acceptability of
the background of the Aapplicant and such other Ppersons requiring background
checks as set forth herein.
I. An Applicant shall file with the Local Licensing Authority the following at the time
of application for a Local License:
1. An operating plan for the proposed Medical Cannabis Business including the
following information:
a. A general description of the types of products and services to be
provided by the facility;
b. A floor plan designating all interior dimensions of the Licensed
Premises and the layout of the Medical Cannabis Business, including
all Limited Access Areas, areas of ingress and egress, and all security
cameras. Such floor plan shall also show the principal uses of the floor
area depicted therein; For Cultivation Sites, such floor plan shall
distinguish all dimensions of areas in which plants are located;
c. An employee list;
d. For a Dispensary, an estimate of the size of the group of ID—Cafd
Medical Cannabis Patients who will be
served by the Dispensary and a statement confirming whether
Ddelivery scrvicc of Medical Cannabis to any location outside the
Dispensary will be provided and the extent of such service, and in the
event Ddelivery service is provided, a detailed Ddelivery plan detailing
how the Dispensary will comply with all requirements of this Chapter,
Chapter 9.108, the MMRSA, and any other applicable state or local
law; and
e. Any additional document(s) or information reasonably requested by the
Local Licensing Authority.
2. For an Applicant seeking a Cultivation Site, a statement must be
provided declaring the Applicant is an "agricultural employer," as
defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor
Relations Act of 1975 (Section 1140.4(c) of the California Labor Code), to
the extent not prohibited by law.
3. Authorization for the Local Licensing Authority and Community Development
Director to seek verification of the information contained within the application
and authorization for the chief of police to conduct background checks as set
forth in subsection 5.88.040(H) above.
4. Each Applicant shall provide any additional information that the Local
Licensing Authority may request to process and fully investigate the
application. The additional information must be provided to the Local
Licensing Authority no later than thirty days of the request unless otherwise
specified by the Local Licensing Authority. Failure to provide such additional
information by the requested deadline may result in denial of the application.
5. Proof of the nature of the Medical Cannabis Business's organizational status,
such as articles of incorporation, by-laws, organizational minutes, partnership
agreements, and other documentation may be required by the City.
6. If the Local Licensing Authority issues the Local License, it shall thereafter
issue said Local Llicense only after the Applicant has paid the licensing fee
and has posted with the Local Licensing Aauthority a good and sufficient
surety bond in the principal amount of $5,000 executed as surety by a
corporate surety in the State of California and as a principal by the Applicant.
The form of the bond shall have been approved by the City attorney and shall
have been given to insure good faith and fair dealing on the part of the
Applicant and as a guarantee of indemnity for any and all loss, damage, theft,
or other unfair dealings suffered by any patron or customer of the Applicant
within the City during the term of the Local License. The Local License fee
and term of bond shall be prorated between date of issuance and date of
expiration. The Local Licensing Authority, in its sole discretion, may waive the
requirement to post a bond if it finds that it would be impracticable to require
the Licensee to obtain and post a bond.
7. A Local License provided and issued pursuant to this Chapter shall specify
the date of issuance, the period of licensure, the name of the Licensee, and
the address of the Licensed Premises.
5.88.045 Grounds for denial of Local License.
A. A Local License provided by this Chapter shall not be issued to or held by any
Pperson or entity prohibited as Licensees under the provisions of this Chapter or
the MMRSA.
B. The Local Licensing Authority may deny the grant or renewal of a Local License
for Good Cause as defined in Section 5.88.025(LP) of this Chapter.
C. The Local Licensing Authority may place conditions upon the approval of any
Local License which are, in the opinion of the Local Licensing Authority,
reasonably related to the protection of the health, safety and welfare of the
neighborhood in which the proposed Licensed Ppremises is to be located and of
the general public.
D. A Local License issued by the Local Licensing Authority constitutes a revocable
privilege. The Applicant has the burden of proving its qualifications for a Local
License at all times.
E. All Ppersons who are engaged in or who are attempting to engage in
Commercial Cannabis Activity in any form shall do so only in strict compliance
with the terms, conditions, limitations and restrictions the MMRSA, this Chapter,
the provisions of Chapters 9.108 and 9.72 Title 9 of theis
Municipal Code, and all other State and local laws and regulations.
F. The Local Licensing Authority is authorized to make policies and procedures
consistent with the intent and spirit of this Chapter concerning the applications,
the application process, the information required of Applicants, the application
procedures, and the administration and procedures to be used and followed in
the application process.
5.88.050 Notification and approval of tlransfer of °Ownership interest, huge-of
- - - - - - - - - - - • - - - •- • - modification of Licensed
Ppremises and other material changes, change of manager, change of location.
In addition to any requirements in Chapter 9.108 and Chapter 9.72 of this Code, the
following requirements apply to for transfer of ownership interest,
change of Financial Interest, or modification of Licensed Ppremises of a Local Liccnse1
and change of manager and location of a Medical Cannabis Business. In the event
e .
A. Change of oOwnership interest to a new Owner or Financial Interest.
Subsequent to the issuance of a Local License, the Licensee shall report any
transfer of ownership or change of financial interest of the Owner or Licensee in
the Medical Cannabis Business to a new Owner to the Local Licensing
Authority on forms prescribed by the Local Licensing Authority and receive
written approval from the Local Licensing Authority prior to any transfer or
change. Notwithstanding anything herein to the contrary, no transfer of
ownership of a Local License may be approved unless the transfer of
ownership of the conditional use permit has been approved pursuant to
Chapter 9.72 of this Code.
B. Modification of Licensed Ppremises. A Licensee shall not make physical
change, alteration, or modification of the Licensed Premises that materially or
substantially alters the Licensed Premises from the plans approved by the Local
Licensing Authority without the prior written approval of the Local Licensing
Authority and the planning commission as required by Chapter 9.108. Material
changes include, but are not limited to: an increase or decrease in the total
square footage of the Licensed Premises or the addition, sealing off, or relocation
of a wall, common entryway, doorway, or other means of public ingress and/or
egress. Applications for modifications of Licensed Ppremises shall be made on
forms prescribed by the Local Licensing Authority.
C. Change in Manager. A Medical Cannabis Business shall provide the City
Manager written notification of any change in manager of the Medial Cannabis
Business within ten business days of the change.
D. Change of Location.
1. A Licensee may apply to the Local Licensing Authority to change the location
previously approved for such Local License to any other place in Cathedral
City, but it shall be unlawful to cultivate, manufacture, distribute, test, store or
sell Medical Cannabis at any such place or location until express permission
to do so is granted by Local Licensing Authority and the City has issued a
conditional use permit to the Licensee at the new location. Applications for
changes of location shall be made on forms prescribed by the Local Licensing
Authority.
2. In permitting a change of location, the Local Licensing Authority shall consider
all reasonable restrictions that are placed upon the current Local License
and/or which may be placed upon the new location by the Local Licensing
Authority pursuant to this Chapter and provided the new location complies
with the provisions of Chapter 9.108.
5.88.055 Renewal of a Local License.
A. A Medical Cannabis Business may apply for the renewal of a Local License no
less than 30 days prior to the Local License's expiration date. If the Medical
Cannabis Business files a renewal application within 30 days prior to expiration,
the Medical Cannabis Business must provide a written explanation detailing the
circumstances surrounding the late filing. The Local Licensing Authority may
accept or reject such late filing in its discretion. The Local Licensing Authority may
elect to administratively continue a Local License past its expiration date,
provided that the Licensee has submitted a renewal application that is pending
final action.
B. An application for renewal will only be accepted if it is accompanied by the
requisite licensing fees.
C. Each application for renewal shall include updated information for any part of the
application that has undergone a change in circumstance since the original
application or last renewal filing.
D. All Owners of the Medical Cannabis Business must be fingerprinted each year at
renewal if required in the discretion of the Local Licensing Authority or Chief of
Police.
E. Unless administratively continued pursuant to subsection 5.88.055(A) above, a
Local License is immediately invalid upon expiration and the Medical Cannabis
Business shall cease operations.
F. All Local Licenses are valid for one year. A Local License may be valid for less
than the applicable license term if revoked, suspended, voluntarily surrendered,
or otherwise disciplined.
5.88.060 Appeal of Local License.
Any decision regarding the Local Licensing Authority's approval, conditional
approval, denial, or revocation of a Local License may be appealed to the City Council
in accordance with the provisions of Sections 2.04.100 et seq. of this Code.
5.88.065 Medical Cannabis Business Operational Requirements.
A. Requirements Applicable to all Medical Cannabis Businesses. A Medical
Cannabis Business must comply with the requirements set forth in this
subsection. Failure to comply with any of these requirements shall be considered
grounds for disciplinary action.
1. General Obligation to Operate in Compliance. A Medical Cannabis Business
shall comply fully with all of the applicable restrictions and mandates set forth
in State and local laws.
2. General Obligation to Pay Taxes. A Medical Cannabis Business must pay any
applicable sales tax pursuant to federal, state, and local law, and all other
legally required taxes and fees, including but not limited to, the Medical
Cannabis Tax required by Chapter 3.48.
3. General Obligation for Compliant Facilities. The Licensed Premises as well as
all operations as conducted therein, shall fully comply with all applicable rules,
regulations, and laws including, but not limited to, Chapter 9.108 of this Code
requiring application and issuance of a conditional use permit, the California
Revenue and Taxation Code, the Americans with Disabilities Act, and all
applicable State Laws.
4. Volunteer and Employee Background Checks. Prior to commencing any work
within or on behalf of a Medical Cannabis Business, all volunteers or
employees must have completed, and the Licensee shall keep on file at the
Licensed Premises, a sufficient and current background check that
demonstrates compliance with the suitability requirements set forth in Section
5.88.045(B).
a. A background check will be considered sufficient provided that it was
conducted by the Cathedral City Police Department or any other entity
determined to be satisfactory by the Cathedral City Police Department.
b. A background check will be considered current provided that the report
was issued no longer than 12 months prior to any date in which the
volunteer or employee worked at the Licensed Premises.
c. Medical Cannabis Businesses must maintain a complete register of the all
volunteers and employees that work at the Licensed Premises. This
register must include:
1. The individual's complete name, address, and last known telephone
number;
2. The individual's hire date and, if applicable date of termination;
3. A copy of each background check required under subparagraph (A)(4);
4. A copy of the written notification provided to the City Manager after any
felony criminal charge or conviction pursuant to subsection
5.88.065(A)(5).
d. The register and required records must be made available for inspection
by any City officer or official for purposes of determining compliance with
the requirements of this Chapter.
5. Notification Required for Arrests or Convictions. A Medical Cannabis
Business shall notify the City Manager in writing of any felony criminal charge
or felony conviction against any manager, employee, or Owner of the Medical
Cannabis Business within ten days of such person'; individual's arrest or
felony summons and within ten. days of the disposition of any arrest
summons. Failure to make proper notification to the City Manager may be
grounds for disciplinary action. Licensees shall cooperate in any investigation
conducted by the Local Licensing Authority.
6. Employees and Volunteers Age Requirement. A Medical Cannabis Business
shall not employ an individual person less than eighteen years of age, nor
may a Medical Cannabis Business permit an—individual person less than
eighteen years of age to volunteer at the Medical Cannabis Business.
7. Age Restricted Limited Access Areas. A Medical Cannabis Business may not
permit an individual person less than eighteen years of age to enter, or be
within, a Limited Access Area.
8. Secure Storage of Product. Medical Cannabis possessed by a Medical
Cannabis Business shall be kept and stored in a secured manner within a
Limited Access Area or Restricted Access Area at all times.
9. Prohibition on Cannabis Consumption on Licensed Premises. Smoking,
ingestion, or consumption of cannabis shall be prohibited on the Licensed
Ppremises of all Medical Cannabis Businesses. The term "Licensed
Ppremises as used in this subsection includes the actual building, as well as
any accessory structures, common areas and parking areas. A sign shall be
posted at each entrance of a Medical Cannabis Business facility that clearly
and legibly states, "Smoking, ingestion, or consumption of cannabis on these
Licensed Premises or in their vicinity is prohibited and a violation of the
Cathedral City Municipal Code."
10. Prohibition on Alcohol Sales, Distribution, or Consumption on Licensed
Premises. A Medical Cannabis Business shall not sell, provide, store, or
distribute any product that would require that the seller possess an alcoholic
beverage license under State Law.
11. Outdoor Signage. Signage for a Medical Cannabis Business that is viewable
from the exterior of the Medical Cannabis Business shall comply with all local
signage laws applicable to the Licensed Premises, including Chapter 9.62 of
this Code. Signage may not be designed to appeal to children, or contain any
false or misleading statements, or make any misrepresentations.
12. Advertising. A Medical Cannabis Business shall not engage in
Advertising that is direct towards individuals less than 18 years of age.
13. Display of License and Conditional Use Permit. A Medical Cannabis
Business shall display a copy of its Local License issued pursuant to this
Chapter and conditional use permit issued pursuant to Chapter 9.108 in a
conspicuous place at the entrance to the Licensed Premises.
14. No Physician Evaluations on Licensed Premises. A Medical Cannabis
Business shall not permit a Pphysician to evaluate Medical Cannabis
Ppatients or to provide recommendations Written Documentation, for
Medical Cannabis within its Licensed Premises. Medical Cannabis
Businesses shall not offer or provide any form of remuneration to a
Pphysician who recommends provides Written Documentation for Medical
Cannabis.
15. Community Relations Designee. A Medical Cannabis Business must provide
the Community Development Director with the name, phone number,
facsimile number, and email address of an on-site community relations
representative or staff person member or other representative to whom the
City can provide notice if there are operating problems associated with the
Medical Cannabis Business or refer members of the public who may have
complaints or concerns regarding the Medical Cannabis Business. The
Medical Cannabis Business shall also provide this contact information to all
neighboring businesses located within one hundred feet of the Medical
Cannabis Business, as measured in a straight line without regard to
intervening structures, between the front doors of each establishment.
16. Seed to Sale Tracking Required. Until such a time that the State of California
fully implements Ssection 19335 of the California Business and Professions
Code, a Medical Cannabis Business must utilize Seed to Sale Software,
third-party software that tracks all sales, transfers, purchases, receipts,
deliveries of Medical Cannabis and Medical Manufactured Cannabis
Products. The software must be capable of producing electronic shipping
manifests, tracking all Medical Cannabis inventory in possession of the
Medical Cannabis Business, promptly identifying a discrepancy in the stock,
and tracking Medical Cannabis from a Qualified Medical Cannabis Patient;
ID Card Hower or Primary Caregiver back to its source in the event of a
serious adverse event.
17. Accurate Weights and Measures. Scales and weighing mechanisms used by
a Medical Cannabis Business must be able to weigh to within 1/100th of a
gram, shall be maintained in good working order and shall be subject to
annual inspection by either a Riverside County Agricultural Commissioner's
Office Weights and Measures official or a licensed scale company.
18. Waste Disposal.
a. Chemical, Dangerous and Hazardous Waste. Disposal of
chemical, dangerous or hazardous waste must be conducted in a
manner consistent with federal, state and local laws, regulations,
rules or other requirements. This may include, but is not limited
to, the disposal of all Pesticide or other chemicals used in the
cultivation process, certain solvents or other chemicals used in
the production of Cannabis Concentrate.
b. Medical Cannabis Waste. Medical Cannabis waste must be made
unusable and Unrecognizable prior to leaving the Licensed
Premises by grinding it and incorporating it with 50% non-Medical
Cannabis waste.
a. A Medical Cannabis Business may compost Medical
Cannabis waste onsite, in accordance with this provision
and all other applicable laws, rules, and regulations.
b. If necessary to protect the health and safety of individuals
working on a Licensed Premises, a Medical Cannabis
Business may permit its employees to grind the stalk of a
Medical Cannabis plant outside of its Licensed Premises
provided all grinding activities occur within 20 feet of the
Licensed Premises and cannot be seen from any public
street.
19. General Sanitary Requirements. A Medical Cannabis Business must ensure
that its Licensed Premises are maintained in a sanitary manner and activities
on its Licensed Premises are conducted in a sanitary manner.
a. All facilities of a Medical Cannabis Business must have adequate and
sufficient access to bathrooms and hand-washing facilities with running
water at a suitable temperature.
b. Hand-washing facilities shall be located where good sanitary practices
require employees or volunteers to wash or sanitize their hands, and
provide effective hand-cleaning and sanitizing preparations and
sanitary towel service or suitable drying devices.
c. All employees and volunteers that engage in the preparation or
dispensing of Edible Cannabis Products must comply with the
provisions of all relevant state and local laws regarding the
preparation, distribution, and sale of food.
20. Security Requirements. The Licensed Premises of a Medical Cannabis
Bbusiness must comply with all of the following security requirements:
a. Video Surveillance. The Licensed Premises must be equipped with a
video surveillance system that meets all of the requirements set forth in
this subsection.
1. Security cameras and digital storage of recordings shall be
maintained in good condition and used in an on-going manner,
twenty-four hours per day, seven days per week.
2. The security system must maintain at least one hundred twenty
concurrent hours of digitally recorded video for each security
camera in the Licensed Premises. Security footage should be
stored in an MPEG4, MJPEG, H.264, or another format approved
by the Local Licensing Authority in writing.
3. Security Cameras must provide adequate and sufficient coverage
for the facility, which must include but need to be limited to, all
Restricted Access Areas and Limited Access Areas, all areas of
ingress and egress, point of sale, the public areas, storage areas,
and any other areas as required by this Chapter and the MMRSA.
Notwithstanding anything herein to the contrary, in the interior
locations, cameras shall be positioned so as not to view or
otherwise record Medical Cannabis Ppatients' Protected Health
Information, such as those Medical Cannabis Patient records
visible on computer screens or other printed files, the confidentiality
of which shall be maintained in accordance with applicable federal
or State Laws.
4. The video surveillance system must be equipped with a failure
notification system that provides prompt notification to the manager
of record of the Licensed Premises of the Medical Cannabis
Business of any surveillance interruption or complete failure of the
surveillance system that lasts longer than 15 minutes.
5. The video surveillance system shall have sufficient battery backup
to support a minimum of fifteen minutes of recording in the event of
a power outage.
b. Alarm System. The Licensed Premises shall have an audible interior
and exterior security alarm system installed on all perimeter entry
points and perimeter windows, operated, and monitored by a security
company licensed by the Department of Consumer Affairs, Bureau of
Security & Investigative Services.
c. Signage Requirement. The Licensed Premises must comply with the
following signage requirements.
1. A sign shall be posted in a conspicuous place near each point of
public access which shall be not less than 12 inches wide and 12
inches long, composed of letters not less than one inch in height,
stating "All Activities Monitored by Video Camera."
2. Limited Access Areas shall be clearly identified by the posting of a
sign which shall be not less than 12 inches wide and 12 inches
long, composed of letters not less than a half inch in height, which
shall state, "Limited Access Area —Authorized Personnel Only."
d. Lighting. The business entrance(s) and all window areas shall be
illuminated during evening hours. The applicant Medical Cannabis
Business shall comply with the City's lighting standards regarding
fixture type, wattage, illumination levels, shielding, etc., and secure the
necessary approvals and permits as needed.
e. Commercial-grade Locks. All points of ingress and egress to a
Licensed Premises shall ensure the use of commercial-grade,
nonresidential door locks or window locks.
f. Notification of Local Licensing Authority and Law Enforcement. A
Medical Cannabis Business shall notify the Local Licensing
Authority and the appropriate law enforcement authorities within
24 hours after discovering any of the following:
1. Significant discrepancies identified during inventory;
2. Diversion, theft, loss, or any criminal activity involving
the dispensary or any agent or employee of the
dispensary;
3. The loss or unauthorized alteration of records related to
Medical Cannabis, Medical Cannabis Patients, Primary
Caregivers, or Dispensary employees or agents; or
4. Any other breach of security.
B. Operational Requirements Applicable to Dispensaries. A Dispensary must
comply with the requirements set forth in this subsection and subsection (A).
Failure to comply with any of these requirements shall be considered grounds for
disciplinary action.
1. Limited Hours of Operation. A Dispensary may only be open to the public and
serve Medical Cannabis Ppatients between the hours of eight (8:00) a.m.
and ten (10:00) p.m.
2. Restricted Access Area.
a. Restricted Access Areas shall be secured and maintained separately
from any lobby or waiting area, and shall be clearly identified by the
posting of a sign which shall be not less than 12 inches wide and 12
inches long, composed of letters not less than a half inch in height,
which shall state, "Restricted Access Area — Only Qualified Medical
Cannabis Patients; and Primary Caregivers, and In Carr! holders
Allowed."
b. A Restricted Access Area must be supervised by a staff member at all
times when Qualified Medical Cannabis Patients, ID Card holders or
Primary Caregivers are present to ensure that only Qualified Medical
Cannabis Patients, ID Card holders or Primary Caregivers are
permitted to enter. When allowing a Qualified Medical Cannabis
Patient, ID Card holder or Primary Caregiver access to a Restricted
Access Area, staff members shall make reasonable efforts to limit the
number of Qualified Medical Cannabis Patients and Primary
Caregivers in relation to the number of staff members in the Restricted
Access Area at any time.
c. The display of Medical Cannabis for sale is allowed only in Restricted
Access Areas and shall not be visible from outside the Licensed
Premises.
d. A Dispensary may not permit an individual person less than eighteen
(18) years of age into its Restricted Access Area unless that individual
person is verified by the Dispensary as a Medical Cannabis Qualified
Patient- or Primary Caregiver, or ID Card holder and accompanied b
, rY 9 p by
the person's individual's parent or legal guardian.
3. Sales Limited to Qualified Medical Cannabis Patients, ID Card holders and
Primary Caregivers.
a. A Dispensary may not permit persons individuals into its Restricted
Access Area unless an employee has verified that the individual is a
Medical Cannabis Patient - 9 — - - - e " , ! . - -- - - - , or a
Medical Cannabis Patient's Primary Caregiver for a patient who has
cannabis. The Dispensary employee may either contact the
recommending Pphysician that provided the Written
Documentation, or, in the case of an registry lidentification Ceard, use
the California Department of Health Medical Marijuana Program
Internet Web Site, in order to perform such verification. Such
verification must occur at least annually, and a physical or digital
record shall be kept of such verification. A Written Documentation
recommendation that is more than twelve (12) months old, unless the
recommendation Written Documentation expressly states that it has
a longer term or does not expire, shall not be considered a valid
Written Documentation recommendation.
b. A Dispensary shall not distribute, sell, or dispense Medical Cannabis to
anyone other than Medical Cannabis ID Card holders, Qualified
Patients or their Primary Caregivers.
4. Non-Medical Cannabis Sales. Dispensaries may sell or otherwise provide
equipment, supplies, and general information related to Medical Cannabis to
Qualified Medical Cannabis Patients, ID Card Holders or Primary
Caregivers, provided that such material is only displayed or sold in the
Restricted Access Area.
5. Electronic Point-of-Sale System Required. Dispensaries must have an
electronic point of sale system that is either part of their Seed to Sale
Software or integrates with their Seed to Sale Software. The electronic point
of sale system must be capable of producing an electronic or automatic paper
record for all transactions associated with any product sold, rented, or
otherwise provided to the Medical Cannabis Patients and Primary
Caregivers.
6. No Sales of Expired Product. A Dispensary may not sell any expired
products, Medical Cannabis or Medical Manufactured Cannabis Product. A
Dispensary shall not alter, edit, or adjust in any manner an expiration date on
any item or product once affixed by its manufacturer.
7. Acceptable Forms of Payment. The City Manager may adopt regulations that
prohibit a Dispensary from accepting certain forms of payment from Medical
Cannabis Qualified Patientsand Primary Caregivers, and ID Card Holdcrm
for Medical Cannabis. A Dispensary may accept cash payments unless the
City Manager has adopted a regulation prohibiting the acceptance of cash.
8. Handling of Edible Cannabis Products. A Dispensary that possesses Edible
Cannabis Products shall comply with the provisions of all relevant state and
local laws regarding the storage, handling, and sale of food.
C. Operational Requirements Applicable to Manufacturing Sites and any
Medical Cannabis Business Engaged in the Preparation or Distribution of
Manufactured Cannabis. A Manufacturing Site and any Medical Cannabis
Business Engaged in the Preparation or Distribution of Manufactured
Cannabis must comply with the requirements set forth in this subsection
and Subsection (A). Failure to comply with any of these requirements shall
be considered grounds for disciplinary action.
1. Limitation on Edible Cannabis Product Types. Edible Cannabis
Products shall be limited to those cottage food product items
approved in the California Homemade Food Act, Section 114365.5 of
California Health and Safety Code, and listed on the California
Department of Public Health's "Cottage Food Operations" Internet
Web site.
2. Pre-Packaged Edible Cannabis Products Only. Edible Cannabis
Products must individually packaged and ready for sale by a Medical
Cannabis Business prior to sale or transfer to another Medical
Cannabis Business.
3. Expiration Date. A Medical Cannabis Business engaged in the
production of Manufactured Cannabis, including an Edible Cannabis
Product, that is perishable shall assign an expiration-date or use-by
date, whichever is appropriate, to all perishable Manufactured
Cannabis. Once an expiration date or use-by date is assigned to
Manufactured Cannabis, it shall be unlawful for a Person to alter that
date or affix a new label with a later use-by or expiration date.
4. Food-Handling Requirements.
a. An Owner, employee or volunteer that produces Edible Cannabis
Products must be a state certified food handler. The valid
certificate number of such Owner, employee or volunteer must be
on record at the Manufacturing Site where that individual
produces Edible Cannabis Products.
b. Any facility used by a Medical Cannabis Business to produce
Edible Cannabis Products shall be constructed, operated and
inspected in accordance with the applicable Building Code and
applicable food safety requirements.
c. A Medical Cannabis Business that produces Edible Cannabis
Products must comply with the provisions of all relevant state
and local laws regarding the preparation, distribution, and sale of
food; which shall include but not be limited to hand-washing
requirements, use of gloves for packaging, and policies
prohibiting individuals suffering from symptoms associated with
communicable diseases or infections from engaging the
production of Edible Cannabis Products.
5. Extraction Requirements.
a. Prior to engaging in the extraction of Medical Cannabis or the
production of any Cannabis Concentrate, a Medical Cannabis
Business must receive approval from the City Manager. In order
to obtain approval, the Medical Cannabis Business must
complete all required forms and pay any required fees. These
forms must detail all types of extraction and production of
Cannabis Concentrate to occur on the Licensed Premises. The
City Manager shall only approve a Medical Cannabis Business to
engage in the extraction of Medical Cannabis or the production of
Cannabis Concentrate after any necessary facility reviews have
been conducted by the Building Department or Fire Department.
Once approved, a Medical Cannabis Business may only engage in
the types of extraction of Medical Cannabis or production of
Cannabis Concentrate explicitly listed on the forms submitted to
the City Manager. The City Manager shall develop procedures for
approval of Medical Cannabis extraction plans.
b. Within the limitations set forth by State Law, a Medical Cannabis
Business extracts Medical Cannabis or produces Cannabis
Concentrate using a solvent must use a professional-grade,
closed-loop extraction system capable of recovering the solvent
used.
D. Operational Requirements Applicable to Cultivation Site and any Medical
Cannabis Business Engaged in the Cultivation of Medical Cannabis. A
Cultivation Site and any Medical Cannabis Business Engaged in the Cultivation
of Medical Cannabis must comply with the requirements set forth in this
subsection and Subsection (A). Failure to comply with any of these requirements
shall be considered grounds for disciplinary action.
1. Compliance with the federal Worker Protection Standard (40 CFR 170).
2. The cultivation of Medical Cannabis must be conducted in accordance with all
applicable federal, state, and local laws and regulations governing the use of
pesticides.
3. The use of pesticides must be recorded in a log in accordance with 16 CCR §
1970.
4. The cultivation of Medical Cannabis shall be conducted in a secure manner
and shall not be visible from a public street as used in this subsection
5.88.065 (D)(4), the term "visible" means capable of being seen, whether or
not legible, without visual aid by an individual person-of normal acuity.
5. A Licensee may not distribute, sell, dispense, or administer Medical Cannabis
on the Licensed Premises of a Cultivation Site except for as authorized by the
MMRSA and other applicable State Law. Licensees issued a conditional use
permit for multiple license types at the same physical address shall maintain
clear separation from all cultivation, manufacturing, and dispensing activities.
5.88.070 Packaging and Labeling.
A. Compliance with State Law. All packaging and labeling of Medical
Cannabis by a Medical Cannabis Business must, at a minimum meet the
requirements of California Business and Professions Code Section 19347,
as the same may be amended from time-to-time or superseded or replaced
by subsequent State legislation or by any State department or division.
B. Tamper-Evident Packaging Required. Medical Cannabis sold or transferred
by a Medical Cannabis Business to a Dispensary, Medical Cannabis Patient
or Primary Caregiver must be in tamper-evident packaging.
C. Child-Resistant Packaging Required. A Dispensary must ensure that all
Edible Cannabis Products are placed within a Container or Exit-Package
that uses Child-Resistant Packaging prior to sale to a Medical Cannabis
Patient or Primary Caregiver, except that a Dispensary may sell Edible
Cannabis Products without any Child-Resistant Packaging and may
remove any Child-Resistant Packaging if the Medical Cannabis Patient or
Primary Caregiver provides written authorization signed by his or her
Physician stating that it would be unreasonably difficult for the Medical
Cannabis Patient to open Child-Resistant Packaging.
D. Cannot be Attractive To Children. Medical Cannabis packaging and labeling
may not be designed to appeal to children, including but not limited to,
cartoon characters or similar images.
E. State-Mandated Warnings. Until such time as the State has adopted
packaging and labeling regulations pursuant to the MMRSA, a Dispensary
shall provide each Medical Cannabis Patient that purchases Medical
Cannabis or Manufactured Cannabis with a card or document containing
the following warnings, in lettering not smaller than 1/16 of an inch:
1. "SCHEDULE I CONTROLLED SUBSTANCE."
2. "KEEP OUT OF REACH OF CHILDREN AND ANIMALS" in bold print.
3. "FOR MEDICAL USE ONLY."
4. "THE INTOXICATING EFFECTS OF THIS PRODUCT MAY BE DELAYED
BY UP TO TWO HOURS."
5. "THIS PRODUCT MAY IMPAIR THE ABILITY TO DRIVE OR OPERATE
MACHINERY. PLEASE USE EXTREME CAUTION."
F. Net Weight. For packages containing only dried flower, the net weight of
Medical Cannabis in the package.
G. Allergens. For packages containing Manufactured Cannabis, warning if
nuts or other known allergens.
H. Labeling Test Results.
1. Until three Testing Laboratories are registered and accredited in
accordance with Section 19342 (a) of the California Business and
Professions Code, a Medical Cannabis Business may label Medical
Cannabis or Manufactured Cannabis based on the results of an on-site
test as permitted by this Chapter provided that the label clearly
indicates that the product has not been tested by a certified testing
facility and that any representation made regarding potency,
Contaminants, or any other testing is based upon results that do not
come from a certified testing facility. Further, the Medical Cannabis
Business may not make any claims that the product is safe for
consumption based on the results of an on-site test.
2. After three Testing Laboratories are registered and accredited in
accordance with Section 19342 (a) of the California Business and
Professions Code, all labels related to potency, contaminants, or any
other testing must be based on test results from a Testing Laboratory
registered and accredited in accordance with Section 19342 (a) of the
California Business and Professions Code.
5.88.075 Testing Requirements
A. Voluntary Testing. A Medical Cannabis Business may transfer a sample of
Medical Cannabis or Manufactured Cannabis to a testing facility licensed or
permitted by its governing local authority for purposes of potency or
Contaminant testing.
B. Compliance with State Testing Requirements. A Medical Cannabis Business
must comply with all testing requirements set forth by the State.
C. On-Site Testinq. Nothing in this Section shall prohibit a Medical Cannabis
Business from performing on-site testing of any Medical Cannabis or
Manufactured Cannabis in its possession for quality assurance, potency or
Contaminants
5.88.080 Transportation and Delivery
A. Applicability. This Section shall apply to Medical Cannabis Businesses with a
valid Local License and does not apply to any other Person engaged in the
transportation of Medical Cannabis for personal or commercial purposes.
B. Transportation Authorized. When conducted in accordance with this Code,
State Law, and the laws of any other relevant local jurisdiction, a Medical
Cannabis Business with a valid Local License may transport Medical Cannabis
between Medical Cannabis Businesses and, pursuant to paragraph K, may
deliver Medical Cannabis to Medical Cannabis Patients and Primary
Caregivers.
C. Transportation, Delivery, and Receipt limited to California. A Medical Cannabis
Business with a valid Local License may not transport Medical Cannabis to or
from another Medical Cannabis Business outside the State of California; nor
may a Medical Cannabis Business with a valid Local License Delivery Medical
Cannabis to a Medical Cannabis Patient or Primary Caregiver outside the State
of California.
D. Persons Authorized to Transport. An individual may only transport Medical
Cannabis on behalf of a Medical Cannabis Business with a Local License if the
individual:
1. Is an employee of the Medical Cannabis Business and is listed on the
Medical Cannabis Business's employee list;
2. Has passed a sufficient criminal background required pursuant to
Section 5.88.040(H) and the employing Medical Cannabis Business
possesses all records required pursuant to Section 5.88.090 on its
Licensed Premises;
3. Possesses a copy of the Medical Cannabis Businesses Local License;
and
4. Possesses a copy of a transportation manifest that meets all the
requirements of Paragraph G.
E. Motor Vehicle Required. A Medical Cannabis Business with a Local License
may only transport Medical Cannabis between Licensed Premises by way of
motor vehicle unless the transport is between two Licensed Premises that are
within the same building or at the same street address.
F. Secure Transport Required. A Medical Cannabis Business with a Local
License shall transport Medical Cannabis in a manner that is secure and not
visible from outside the vehicle.
G. Transportation Manifest.
1. A Medical Cannabis Business must create a transportation manifest in
accordance with this Chapter for every transport and Delivery of
Medical Cannabis. A Medical Cannabis Business must ensure that a
copy of the appropriate transportation manifest accompanies every
transport and Delivery of Medical Cannabis and is kept for retention by
the originating Medical Cannabis Business
2. If a Medical Cannabis Businesses makes multiple pick-ups or deliveries
during a single trip, then a separate transportation manifest shall be
required for each pick-up or Delivery.
3. For any transport between two Medical Cannabis Businesses, a
transportation manifest will be deemed sufficient if it accurately reflects:
i. All Medical Cannabis that will be transported to the address
reflected on the Manifest, accurately inventoried to include the
weight of any raw Medical Cannabis or Cannabis Concentrate and
the number of individual Manufactured Cannabis products;
ii. Departure date and approximate time of departure;
iii. Arrival date and approximate time of arrival;
iv. Name, address, Local License number and CUP number (or, for
Medical Cannabis Businesses outside of Cathedral City, a similar
number issued by the Medical Cannabis Business's local
jurisdiction) of the originating Medical Cannabis Business;
v. Name, address, Local License and CUP number (or, for Medical
Cannabis Businesses outside of Cathedral City, a similar number
issued by the Medical Cannabis Business's local jurisdiction) of
the receiving Medical Cannabis Business;
vi. Delivery vehicle make, model, and license plate number; and
vii. Name and signature of the individual transporting the Medical
Cannabis.
4. For any transport between a Medical Cannabis Business and a Medical
Cannabis Patient or Primary Caregiver, a transportation manifest shall
be deemed sufficient if it accurately reflects:
i. All Medical Cannabis that will be transported, accurately
inventoried;
ii. Departure date and approximate time of departure;
iii. Arrival date and approximate time of arrival;
iv. Name, address, Local License number and CUP number of the
originating Medical Cannabis Business;
v. Name and address of the individual requesting the Delivery;
vi. Delivery vehicle make, model, and license plate number; and
vii. Name and signature of the individual transporting the Medical
Cannabis.
H. Preparation of Medical Cannabis for Transportation.
1. All Medical Cannabis must be appropriately and completely tracked in a
Medical Cannabis Business's Inventory Tracking System prior to
engaging in a transfer or transport. This must include verifying and
documenting the weight of any raw Medical Cannabis or Cannabis
Concentrate and the number of individual Manufactured Cannabis
products being transported.
2. Preparations for the transport or transfer of Medical Cannabis must be
conducted in a Limited Access Area on camera.
I. Receiving Medical Cannabis.
1. A Medical Cannabis Business with a Local License may not receive
Medical Cannabis unless the transport is accompanied by a
transportation manifest that meets all of the requirements set forth in
Paragraph (G). The receiving Medical Cannabis Business must retain
copies of transportation manifests associated with all deliveries of
Medical Cannabis.
2. Immediately upon receipt, all Medical Cannabis must be appropriately
and completely tracked in the receiving Medical Cannabis Business's
Inventory Tracking System. This must include verifying and
documenting the weight of any raw Medical Cannabis or Cannabis
Concentrate and the number of individual Manufactured Cannabis
products being transported.
J. Perishable Manufactured Cannabis. A Medical Cannabis Business must
provide adequate refrigeration when engaged in the transport of perishable
Manufactured Cannabis.
K. Delivery of Medical Cannabis to Medical Cannabis Patients. Notwithstanding
Section 5.88.065 a Dispensary may deliver Medical Cannabis to a Medical
Cannabis Patient or Primary Caregiver provided the Dispensary has been
approved by the Local Licensing Authority to conduct Deliveries and the
Delivery is conducted in accordance with any relevant State Laws, this Code,
any applicable local laws in the Delivery location, and any requirements
imposed upon the Dispensary by the City Manager in approving an application
to conduct Deliveries.
1. Delivery Limited to Authorized Locations. A Dispensary shall only
deliver Medical Cannabis to a city, county, or city and county in which
Delivery of Medical Cannabis is not expressly prohibited by ordinance.
2. Application to Conduct Deliveries. A Dispensary shall not deliver
Medical Cannabis to Medical Cannabis Patients or Primary Caregivers
until the Local Licensing Authority approves in writing its application to
conduct Deliveries. An application to conduct Deliveries must comply
with the following requirements:
i. The application must be made on current forms proscribed by the
Local Licensing Authority.
ii. The application must be submitted in coniunction with any
applicable fees set forth by the Local Licensing Authority.
iii. The application must sufficiently demonstrate that the Dispensary
has developed standard operating procedures that require all
employees conducting a Delivery to do so in accordance with this
Code and any rules promulgated thereto.
iv. The application must sufficiently demonstrate that the Dispensary
has developed standard operating procedures that ensure the
safety and security of employees engaging in Delivery and the
and security of all Medical Cannabis being delivered, including
procedures to prevent diversion.
3. Address Required. A Medical Cannabis Business may only deliver
Medical Cannabis to a Medical Cannabis Patient or Primary Caregiver at
a specific address requested by the recipient and that matches the
address listed on the transportation manifest. Deliveries to public parks
and schools are expressly prohibited.
4. Special Requirements for Deliveries to Medical Cannabis Patients and
Primary Caregivers.
i. Prior to transporting Medical Cannabis to a Medical Cannabis
Patient or Primary Caregiver, a Medical Cannabis Business must
verify that the individual requesting a Delivery is a Medical
Cannabis Patient or Primary Caregiver in accordance with the
requirements set forth in Section 5.88.065(B)(3).
ii. Upon arrival at the Delivery address and prior to transferring any
Medical Cannabis, a Medical Cannabis Business must verify and
confirm that the identity of the recipient is the same as the
Medical Cannabis Patient or Primary Caregiver that requested the
Delivery and whose patient status was confirmed as required by
this Chapter.
5. Incident Reports. A Medical Cannabis Business shall report to the City
Manager and local law enforcement any vehicle accidents, diversions,
losses, or other reportable incidents such as thefts or suspicious
activity, that occur during transport, within 24 hours
L. An employee transporting Medical Cannabis pursuant to this Chapter must
take a direct route from the Medical Cannabis Business to the destination of
the other Medical Cannabis Business, Medical Cannabis Patients, or Primary
Caregivers, and may not make any stops other than those necessary in the
ordinary course of business.
5.88.085 Visitor Requirements.
A. Visitors.
1. Any individual permitted to enter a Limited Access Area who is not an
Owner, employee, or volunteer that has undergone a background check
in accordance with Sections 5.88.040(H) and 5.88.065(A)(4) and is listed
on the Licensed Premises employee list shall be considered a visitor.
2. Any individual permitted into a Restricted Access Area who is not a
Medical Cannabis Patient, Primary Caregiver, or an Owner, employee, or
volunteer that has undergone a background check in accordance with
Sections 5.88.040(H) and 5.88.065(A)(4) and is listed on the Licensed
Premises employee list shall be considered a visitor.
3. Notwithstanding the above, State and local employees, or their official
designees, shall be considered not be considered a visitor provide the
individual is on the Licensed Premises for purposes of official
government business.
B. Visitors Identification and Record Requirements. Prior to permitting a visitor
into a Restricted Access Area or Limited Access Area, a Medical Cannabis
Business must check the individual's valid government issued identification.
The visitor shall be required to sign the Medical Cannabis Business's visitor
log, which must include the individual's name, date of entry, and purpose for
entry.
C. Visitors must be at least 18 Years of Age. A Medical Cannabis Business may
not permit a visitor who is less than 18 years of age to enter a Restricted
Access Area or Limited Access Area.
D. Visitors Prohibited Conduct. A Visitor shall not be permitted to engage in the
cultivation, preparation, processing, manufacturing, packaging, labeling,
transportation, or sale of Medical Cannabis.
5.88.090 Maintenance of Records Required.
A. Maintenance and Inspection of Records Required. Medical Cannabis
Businesses shall keep and maintain all records specified in the MMRSA,
Chapter 9.108 of this Code and this Chapter and shall make the same available
for inspection and examination of the Local Licensing Authority or its duly
authorized representatives at all times of apparent operation. A failure to
maintain such records and to allow for inspection of the same as well as a
failure to allow the inspection of the Licensed Premises by the Local Licensing
Authority shall constitute a violation of this Chapter and such violation may, in
the discretion of the Local Licensing Authority, form or constitute the basis for
a suspension, a suspension, fines and/or revocation of the Licensee's Local
License.
B. Additional Record Keeping Requirements. In addition to all record keeping
requirements set forth in the MMRSA and this Code, a Medical Cannabis
Business must also maintain the following records:
1. Medical Cannabis Patient Records, which must include a copy of the
Physician's Written Documentation or valid Identification Card, and, if
using a Primary Caregiver, a written authorization from the Medical
Cannabis Patient to be represented by such Primary Caregiver;
2. A diagram of the Licensed Premises containing all of the elements set
forth in Section 5.88.040(I)(1)(b);
3. All required records relating to inventory tracking, transportation, and
testing.
C. Loss of Records and Data. Any loss of electronically maintained records shall
not be considered a mitigating factor for violations of this rule. Medical
Cannabis Businesses are required to exercise due diligence in preserving and
maintaining all required records.
5.88.0957-0 Confidentiality of information.
A. The City's review of information submitted or maintained pursuant to this Chapter
shall preserve the confidentiality of all information about Applicants, Licensees,
Applicants, Owners, employees, members, or volunteers, Medical Cannabis
Patients, or Primary Caregivers to the maximum extent consistent with state
and local law. The City shall incur no liability for the inadvertent or negligent
disclosure of such information. Disclosure of any Licensee or Applicant or
Licensee information to the City for purposes of this Chapter shall not be
deemed a waiver of confidentiality.
B. The City shall treat all financial information provided pursuant to this Chapter as
financial data in accordance with the California
Public Records Act (California Government Code §§ 6254(n).
C. Information identifying the names, addresses, or social security numbers of
Qualified Patients, ID Card Hholders, their medical conditions, or any treatment
proscribed, recommended, or discussed, or disclosed, or the names of their
Primary Caregivers, received and contained by a Medical Cannabis Business or
any City official pursuant to this Chapter are hereby deemed "medical
information" within the meaning of the Confidentiality of Medical Information Act
(California Civil Code § 56, et seq.) and shall not be disclosed by the Medical
Cannabis Business or by any City official except in accordance with the
restrictions on disclosure of "individually identifiable information" under the
Confidentiality of Medical Information Act (California Civil Code § 56, etseq.).
D. Within 24 hours of receiving any request to disclose the name, address, or social
security number of a Qualified Medical Cannabis Patient , their
medical condition, or the name of their Primary Caregiver, the Medical Cannabis
Business or any City official shall contact the Medical Cannabis Ppatient and
inform the Medical Cannabis Ppatient of the request and if the request was
made in writing, a copy of the request.
E. Notwithstanding Section 56.10 of the California Civil Code, neither a Medical
Cannabis Business nor any City official, shall disclose, nor shall they be ordered
by agency or court to disclose, the names, addresses, or social security numbers
of Medical Cannabis Ppatients, their medical conditions, or the names of their
Primary Caregivers, sooner than the 10th day after which the Medical Cannabis
Ppatient whose records are sought to be disclosed has been contacted.
F. The information required by Section 5.88.065 and Section 5.88.090, recordings
from security cameras, shall be confidential and shall not be subject to public
inspection or disclosure except to City employees for purposes of law
enforcement.
G. In order to protect confidentiality, Dispensaries shall not collect or maintain
Protected Health Information. A Dispensaryies shall maintain membership
records and information about members Medical Cannabis Patients and
Primary Caregivers that use such Dispensary in a manner that ensures that
the information will not be disclosed except as required by this Chapter or other
laws. If a Dispensary maintains information conveyed by a Member Medical
Cannabis Patient or Primary Caregiver to a Dispensary regarding such
Medical Cannabis Patient's Miler's medical condition, information conveyed
by a Member Medical Cannabis Patient to a Dispensary regarding efforts to
ameliorate or otherwise address symptoms associated with such Member
Medical Cannabis Patient's medical condition, or information regarding Medical
Cannabis, - . - _ - _' - :: . and/or Manufactured Cannabis EdiblcJ
provided to a Medical Cannabis Patient Member, such information shall be kept
in a manner that is in compliance with the Confidentiality of Medical Information
Act (California Civil Code § 56, et seq.). Membership Ltists of Medical
Cannabis Patients and Primary Caregivers that use such Dispensary shall
be available to City employees charged with the administration of this Chapter for
inspection on site without a warrant during business hours or by appointment.
5.88.100076 Limitations on City's liability.
To the fullest extent permitted by law, the City shall not assume any liability whatsoever,
with respect to approving any Local License pursuant to this Chapter or the operation of
any Medical Cannabis Business approved for such Local License pursuant to this
Chapter. As a condition of approval a Local License granted under this Chapter, the
Applicant or its legal representative shall:
A. Execute an agreement indemnifying and holding the City harmless from any and
all claims, damages, legal or enforcement actions, including, but not limited to,
any actions or claims associated with violation of federal law associated with the
operation of the Medical Cannabis Business and Delivery of Medical Cannabis
as provided in this Chapter; and
B. Maintain insurance in the amounts and of the types that are acceptable to the
City pursuant to guidelines and policies set forth by the Local Licensing
Authority; and
C. Name the City as an additionally insured on all Ceity_required insurance policies;
and
D. Agree to defend, at its sole expense, any action against the City, its agents,
officers, and employees related to the approval of a Local License or conditional
use permit or the operation of the Medical Cannabis Business; and
E. Agree to reimburse the City for any court costs and attorney fees that the City
may be required to pay as a result of any legal challenge (or federal enforcement
action) related to the City's approval of a Local License or conditional use permit.
The City may, at its sole discretion, participate at its own expense in the defense
of any such action, but such participation shall not relieve the operator of its
obligation hereunder.
5.88.105050 Inspections.
A. Recordings made by security cameras at any Medical Cannabis Business shall
be confidential and not subject to public inspection or disclosure; except that
such recordings shall be made immediately available to the Local Licensing
Authority, the City Manager, the chief of police or their designee upon verbal
request for law or regulatory enforcement and criminal investigation purposes.
B. The Local Licensing Authority, the City Manager, or their designated code
enforcement officers shall have the right to enter all Medical Cannabis
Businesses from time to time unannounced for the purpose of making
reasonable inspections to observe and enforce compliance with this Chapter.
Such inspections shall be limited to observing the Licensed Premises for
purposes of determining whether the Medical Cannabis Business is being
operated or maintained in compliance with this Code, State Law, and other
applicable laws and regulations.
C. The Community Development Director or the City Manager shall have the right
to inspect membership records of Medical Cannabis Patients and Primary
Caregivers that use such Dispensary for the sole purpose of determining
whether all such individuals V members mbers of the Dispensary's related collective or
cooperative are qualified to use the Dispensary. Such inspections of
membership--records shall not be used for any other purposes, nor shall the
records be removed off-site by the City without a court order.
D. The City Manager may delegate an act required to be performed pursuant to this
Section to any code enforcement officer or official of the City, including without
limitation the chief of police, the fire chief, the building official, the finance
director, the City attorney, or any designee of such officers or officials, including
day-to-day operations.
E. Applicants and Licensees must cooperate with employees and investigators of
the City Manager who are conducting inspections or investigations relevant to
the enforcement of laws and regulations related to this Chapter.
5.88.110085 Enforcement.
A. In addition to any other civil or criminal sanction prescribed by California law or
rules promulgated pursuant thereto, the Local Licensing Authority has the power,
on its own motion or on complaint, after investigation and opportunity for a public
hearing at which the Licensee shall be afforded an opportunity to be heard, to
fine, restrict, suspend or revoke a Local License for Good Cause or for a
violation by the Licensee or by any of the agents or employees of the Licensee
of the provisions of this Chapter, the MMRSA and/or of any of the other terms,
conditions or provisions of the State or Local License.
B. Operation of the Medical Cannabis Business in non-compliance with any
conditions of approval or the provisions of this Chapter, Chapter 9.108 or
Chapter 9.72 shall constitute a violation of this Code and shall be enforced
pursuant to the provisions of this Chapter and this Code.
C. The Local Licensing Authority in its discretion may revoke or elect not to renew
any Local License if it determines that the Licensed Premises have been
inactive, without reasonable cause as determined by the Local Licensing
Authority, for a period of at least one year.
5.88.115090 Compliance with State Law.
A. To the extent the state has adopted or adopts in the future any additional or
stricter laws or regulations governing the sale or distribution of Medical Cannabis,
the additional or stricter regulations shall control the establishment or operation
of any Medical Cannabis Business in Cathedral City. Compliance with any
applicable State Law or regulation shall be deemed an additional requirement for
issuance or denial of any Local License under this Chapter, and noncompliance
with any applicable State Law or regulation shall be grounds for fines,
administrative action, revocation, or suspension of any Local Llicense issued
hereunder.
B. Any Medical Cannabis Business licensed pursuant to this Chapter may be
required to demonstrate, upon demand by the Local Licensing Authority or by law
enforcement officers that the source and quantity of any Medical Cannabis found
upon the Licensed Premises is in full compliance with any applicable local or
State Law or regulation.
5.88.120 Suspension, Fine in Lieu of Suspension, or Revocation of Local License.
A. After an investigation, notice and hearing pursuant to the procedures set
forth in Sections 5.01.020 and Title 13, the Local Licensing Authority or his
designee shall suspend or revoke an existing Medical Cannabis Business
Local License, or permit the Medical Cannabis Business to pay a fine in
lieu of suspension, as shall be found to be necessary to assure the
preservation of the public health and safety, if the evidence presented
established that one of the following conditions exist:
1. A Licensee transfers ownership interest to a new Owner in its Medical
Cannabis Business without receiving prior approval pursuant to Section
5.88.050 A;
2. A Licensee fails to maintain sufficient and current background checks
and permit an individual with a disqualifying criminal record to
volunteer or work at the Licensed Premises pursuant to Section
5.88.065 A.4;
3. A Licensee sells Medical Cannabis to any individual under 18 years of
age other than a Medical Cannabis Patient pursuant to Section 5.88.065
B.3b;
4. A Licensee engages in the privileges of a Medical Cannabis Business
Licensee outside of its Licensed Premises;
5. A Licensee fails to track all Medical Cannabis inventory pursuant to
Section 5.88.065 A.16; or
6. More than thirty days have elapsed since a tax, fee, fine, any form of
regulatory assessment or judgment for monetary damages, irrespective
of any other form of relief set out in the judgment, which is to be paid to
the city has been imposed against a Medical Cannabis Business, and
said sum remains owing.
B. In the event that it is a Licensee's first violation within a twenty-four month
period subject to sanction pursuant to paragraph A, the Local Licensing
Authority may issue a suspension of up to 5 days. The Licensee may elect
to pay a fine in lieu of suspension of up to $5000 per day.
C. In the event that it is a Licensee's second violation within a twenty-four
month period subject to sanction pursuant to paragraph A, the Local
Licensing Authority may revoke the License, issue a suspension of up to
10 days. The Licensee may elect to pay a fine in lieu of suspension of up to
$5,000 per day.
D. In the event that it is a Licensee's third violation within a twenty-four month
period subject to sanction pursuant to paragraph A, the Local Licensing
Authority may revoke the License or issue a suspension of up to 30 days.
5.88.12500 Public Nuisance. , violations
A. Public Nuisance. Unless otherwise expressly authorized by this Chapter, it is
unlawful and it shall be a public nuisance subject to the provisions of Section 13.80.240
and Chapter 13.90 of this Code, to establish, maintain, or operate a Medical Cannabis
Business within the Csity without having received a Local License pursuant to this
Chapter and a conditional use permit pursuant to Chapters 9.108 and Chapter 9.72 of
this Code.
5.88.130 Infraction Eh Violations.
A. -- - - - . . - - - - - • -- - - - -- _- - - •, - - -
as the standard punishment for specific violations of this Chapter. Any violation
without a scheduled punishment of this Chapter or any rules promulgated
pursuant to this Chapter by the Person responsible for committing
causing or maintaining such violation shall constitute an infraction violation
which shall be subject to the provisions set forth in Chapter 13.65 Sections
13.65.010, 13.65.015, 13.65.020, 13.65.025, 13.65.030, 13.65.040, including but
not limited to the imposition of any and all criminal penalties set forth therein.
B. The Local Licensing Authority may, in its sole discretion, treat any violation
of this Chapter that is not abated and remedied within 30 days of
conviction as subject to the penalties set forth in Section 5.88.120.
5.88.135 Civil Fines.
Any Person convicted of an infraction violation shall, for each separate violation
of this Chapter, be subject to:
A. A fine in an amount not to exceed two hundred fifty dollars for a first
conviction of an offense;
B. A fine in an amount not to exceed five hundred dollars for a second
conviction of the same offense within a twelve-month period of the date of
the first offense;
C. A fine in an amount not to exceed seven hundred fifty dollars for a third
conviction of the same offense within a twelve-month period of the date of
the first offense; and
D. A fine of one thousand dollars for the fourth and subsequent convictions of
the same offense within a twelve-month period of the date of the first
offense.
5.88.140 Cathedral City Medical Cannabis Task Force.
The purpose of this Section is to ensure that Medical Cannabis provision in
Cathedral City is conducted in a safe and orderly manner to protect the welfare of
Medical Cannabis Patients and the community.
A. Medical Cannabis Task Force Established. No later than October 1, 2016, the
City Manager shall designate no less than nine members and no greater than
fifteen members to the Cathedral City Medical Cannabis Task Force.
7. The City Manager shall serve as the Chair of the Task Force;
8. The Medical Cannabis Task Force shall consist of at least one
representative from the following groups:
i. Cathedral City Police Department;
ii. Cathedral City Fire Department;
iii. Cathedral City Planning Department;
iv. Cathedral City Mayor's Office;
v. A Medical Cannabis Patient;
vi. An Owner of a Dispensary;
vii. An Owner of a Cultivation Site;
viii. An Owner of a Manufacturing Site; and
ix. An interested member of the Cathedral City Community, who
must be a resident.
B. Bi-Annual Meetings Required. The Medical Cannabis Task force shall meet no
less than twice per calendar year.
C. Attendance Required. A member of the Medical Cannabis Task Force shall be
required to attend all Task Force meetings unless the Chair of the Task Force
excuses an absence.
D. Task Force. The Medical Cannabis Task Force shall discuss and propose
amendments to this Code or any rules or regulations promulgated thereto to
improve the efficacy of the regulatory system or public safety associated with
the operation of a Medical Cannabis Business. In making recommendations,
the Task Force shall consider the operability of any recommendation for the
City and Medical Cannabis Businesses, reasonable and safe access to
Medical Cannabis by Medical Cannabis Patients, and impacts to the
community. The Task Force shall not make any recommendations that, if
adopted, would make it unreasonably impracticable for a Medical Cannabis
Patient to obtain Medical Cannabis or to operate a Medical Cannabis
Business.
Section 4. Chapter 13.80 of the Cathedral City Municipal Code is hereby amended
to read as follows, with additions underlined and deletions struckthrough:
Chapter 13.80 PUBLIC NUISANCES
13.80.240 Medical Cannabis Businesses
It is unlawful and it shall be a public nuisance subject to the provisions of Chapter 13.90
of this ECode, to establish, maintain, or operate a mMedical Cannabis Business
within the cCity without - - - - - - - - •- - -having received a Local License pursuant to Chapter 5.88 and a conditional use
permit pursuant to as required under Chapters 9.108 and 9.72 and 9.108 of this
ECode. The term "mMedical Cannabis Business " shall have the
definition set forth in Section 9.108.030 of this ECode and the term "Local License"
shall have the definition set forth in Section 5.88.025 of this Code.
Section 5. ENVIRONMENTAL FINDINGS
The City Council finds that this Ordinance is Categorically Exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15303(c), as it would only permit
projects consisting of a limited number of new, small facilities; installation of small new
equipment and facilities in small structures; and the conversion of existing small
structures from one use to another where only minor modifications are made in the
exterior of the structure.
Section 6. SEVERABILITY
The City Council declares that, should any provision, section, paragraph, sentence or
word of this ordinance be rendered or declared invalid by any final court action in a
court of competent jurisdiction or by reason of any preemptive legislation, the remaining
provisions, sections, paragraphs, sentences or words of this Ordinance as hereby
adopted shall remain in full force and effect.
Section 7. EFFECTIVE DATE
This Ordinance shall take effect thirty (30) days after certification.
Section 8. REPEAL OF CONFLICTING PROVISIONS
Except as otherwise provided in this Ordinance, all the provisions of the Cathedral City
Municipal Code as heretofore adopted that are in conflict with the provisions of this
Ordinance are hereby repealed as of the Effective Date.
Section 9. POSTING
The City clerk shall within 15 days after passage of this Ordinance, cause it to be
posted in at least three (3) designated public places; shall certify to the adoption and
posting of this Ordinance; and shall cause this Ordinance and its certification, together
with proof of posting, to be entered in the Book of Ordinances of this City.
The foregoing Ordinance was introduced at the March 9, 2016 City Council Meeting and
adopted by the City Council of the City of Cathedral City at its meeting held March 23,
2016, by the following vote:
Ayes: Council Members Aguilar, Carnevale and Kaplan; Mayor Pro
Tem Pettis and Mayor Henry
Noes: None
Abstain: None
Absent: None
�'anley E. Henry, Mayor
Attest:
ade
Gary Howell, City , lerk
Approved as t Form:
Eric S. Vail, City Attorney