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Home My WebLink AboutOrd 863 ORDINANCE NO. 863 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY AMENDING CHAPTER 5.88 (CANNABIS BUSINESSES) WHEREAS, the City of Cathedral City has allowed a wide range of cannabis businesses to operate within the City, subject to licensing and other regulatory requirements, since Proposition 64 legalized medicinal and adult-use cannabis; and WHEREAS, as the cannabis industry and State regulations evolve, the City desires to update its local regulations to address new concerns and ensure consistency with State requirements; and WHEREAS, the City Council and Cannabis Task Force have held study sessions on proposed revisions to the City's cannabis regulations and provided input and direction on desired changes. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1 AMENDMENT OF SECTION 5.88.025 (DEFINITIONS) A. The definition of "good cause" in Section 5.88.025 is amended as follows: "Good cause" for purposes of denying an initial local license issuance, for suspending or revoking a local license, or for denying a local license renewal, means: 1. The applicant or licensee has been cited for violating 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 premises has been or is proposed to be 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 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 criminal history of the applicant's or licensee's owner(s) indicates that one or more of the owner(s) lack good moral character; 5 An owner of the applicant or licensee is a licensed physician providing physician's recommendation to qualified patients for medicinal cannabis; -1- RIV#4889-3092-9927 v1 6. The applicant or licensees, or any owner of the applicant or licensee, is a person who is prohibited from holding the license under this chapter; 7. The premises proposed to be licensed or the licensed premises is located on land that is owned by the United States and held in trust for any federally-recognized Indian tribe or any member of the tribe, or that is subject to a restriction on alienation imposed by the United States; 8. For renewals, suspensions and revocations, the licensee has allowed a person whose criminal history indicates that person is not of good moral character to work within the premises as an employee, independent contractor, or volunteer; or 9. For renewals, suspensions and revocations, the licensee fails to allow inspection of the security recordings, activity logs, or business records of the licensed premises by city officials. B. The definition of "Owner" is amended as follows: "Owner" means any of the following: 1. A person with an aggregate ownership interest of twenty percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. 2. The chief executive officer of a nonprofit or other entity. 3. A member of the board of directors of a nonprofit. 4. An individual who will be participating in the direction, control, or management of the person applying for a license. SECTION 2 AMENDMENT OF SECTION 5.88.035 (LOCAL LICENSE REQUIRED) A. Paragraph B of Section 5.88.035 is amended as follows: B. It is unlawful for a cannabis business to operate in the city unless it has been granted the appropriate temporary or permanent state license(s) for its commercial cannabis activities. If the state denies the application for a temporary or permanent license(s) for any reason, the cannabis business must cease operations until such time as it obtains the appropriate temporary or permanent state license(s). SECTION 3 AMENDMENT OF SECTION 5.88.065 (CANNABIS BUSINESS OPERATIONAL REQUIREMENTS) A. Paragraph I of Section 5.88.065 is amended as follows: I. Cannabis Consumption on Licensed Premises. Smoking, vaporizing, -2- RIV#4889-3092-9927 v1 ingesting, or otherwise consuming cannabis and cannabis products at a licensed premises is prohibited, except on the premises of a licensed dispensary in accordance with Section 5.88.070(J). "Licensed premises" 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 to a licensed premises that clearly and legibly states, "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Cathedral City Municipal Code." B. Paragraph P (Seed to Sale Tracking Required) of Section 5.88.065 is deleted in its entirety, and all subsequent paragraphs within the section are re-lettered to maintain alphabetical order. C. A new subparagraph 4 is added to paragraph Q (Waste Disposal) of Section 5.88.065 to read as follows: 4. Odor. Disposal of cannabis waste shall be done in a manner consistent with the conditional use permit for the business. The conditional use permit may include conditions to minimize odor generated by cannabis waste, including but not limited to the placement of waste containers and the imposition of odor control requirements. $ECTION 4 AMENDMENT OF SECTION 5.88.070 (DISPENSARY OPERATIONAL REQUIREMENTS) A. Paragraph A of Section 5.88.070 is amended as follows: A. Limited Hours of Operation. A dispensary may only be open to the public and engage in sales between the hours of six a.m. and ten p.m. B. Paragraph B of Section 5.88.070 is amended as follows: B. Product Displays. The display of cannabis and cannabis products for sale shall not include cartoon characters or other images designed to appeal to children. C. Paragraph I (Sale of Untested Products) is deleted in its entirety and all subsequent paragraphs in the section are re-lettered to maintain alphabetical order. D. Subparagraphs 3 and 4 of Paragraph J (Consumption of Cannabis and Cannabis Products on Premises) are amended as follows: 3. Cannabis consumption must occur only within the areas designated for consumption by the license. 4. The cannabis business must install and maintain in good working order an odor control system in accordance with Section 9.108.080(A)(1). Odors caused by the consumption of cannabis at the dispensary must not be detectable from any -3- RIV#4889-3092-9927 vl public place. The cannabis business shall submit and abide by a certified odor control plan approved by the local licensing authority as a part of the license application and approval process. The plan shall include the use of a Vapor Phase System utilizing an odor neutralizer, such as Cannabolish or a similarly effective technology. SECTION 5 AMENDENT OF SECTION 5.88.095 (PACKAGING AND LABELING) A. Paragraph D of Section 5.88.095 is amended as follows: D. State-Mandated Warnings and Information. All cannabis and cannabis product labels and inserts shall include the state-mandated warnings and information contained in Business and Professions Code Section 26120(c). SECTION 6 AMENDMENT OF SECTION 5.88120 (CIVIL FINES) A. Section 5.88.120 is amended as follows: Any person convicted of an infraction or misdemeanor violation shall, for each separate violation of this chapter, be subject to civil fines in amounts set by resolution of the city council in addition to any infraction or misdemeanor penalties. SECTION 7 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 8 EFFECTIVE DATE This Ordinance shall take effect thirty (30) days after its second reading and adoption by the City Council. SECTION 9 POSTING The City Clerk shall, within fifteen (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. SECTIONIO CERTIFICATION The foregoing Ordinance was approved and adopted at a meeting of the City Council held on the 14th day of September, 2022, by the following vote: -4- RIV#4889-3092-9927 vl Ayes: Councilmembers Gregory, Ross and Carnevale; Mayor Pro Tem Lamb and Mayor Gutierrez Noes: None Abstain: None Absent: None Ernesto Gutierrez, Mayor ATTEST: .41 i A Ail v IAA ;SI ; . i Tracey R. 0-rmosillo, City Clerk APPROVED AS TO FORM: Eric S. Vail, City Attorney -5- RIV#4889-3092-9927 vl