HomeMy WebLinkAboutOrd 870 ORDINANCE NO. 870
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY AMENDING SECTIONS 5.88.040 AND 5.88.055
OF THE CATHEDRAL CITY MUNICIPAL CODE RELATED TO
CANNABIS BUSINESS LICENSE EXPIRATION AND RENEWALS
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, the City desires to update its local regulations to address business
license operations to curtail the practice of holding and renewing a license for a cannabis
business that is not in operation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1 AMENDMENT OF SECTION 5.88.055 (RENEWAL OF A LOCAL
LICENSE)
Section 5.88.055 (Renewal of a local license) is amended in its entirety to
read as follows, with additions underlined and deletions struck-through.
"A. A cannabis business that desires to renew its license shall apply for the renewal
no less than thirty days prior to the local license's expiration date. If the cannabis business
files a renewal application within thirty days prior to expiration, the 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 shall be submitted on forms provided by the local
licensing authority, accompanied by the processing fee established by resolution of the
city council. The following information shall be submitted as a part of the renewal
application:
1. A current list of the employees, independent contractors, and volunteers working
at the licensed premises.
2. Proof that no changes to the ownership of the licensee have occurred since last
approved by the local licensing authority.
3. Proof that the licensee is still entitled to the possession and use of the licensed
premises.
-1-
RIV#4889-3092-9927 vl
4. For dispensaries, proof that commercial cannabis activity is occurring on the
premises in accordance with the following:
a. For a first renewal application, proof that commercial cannabis activity
permitted by the license has been occurring on the premises for the previous month. A
tax return submitted pursuant to Section 3.48.080 of this code showing that taxable
commercial cannabis activity occurred on the premises shall be sufficient proof.
b. For a second and subsequent renewal application, proof that commercial
cannabis activity permitted by the license has been occurring on the premises for the
previous twelve (12) consecutive months. Tax returns submitted pursuant to Section
3.48.080 of this code showing that taxable commercial cannabis activity occurred on the
premises shall be sufficient proof.
c. The local licensing authority may renew a license not meeting the
requirements of subparagraphs a or b above if the renewal application demonstrates
unique or extraordinary circumstances that has impacted the ability of the cannabis
business to conduct commercial cannabis activity on the premises, including but not
limited to fire, flood or other act of god resulting in substantial damage to the premises,
or a delay in the issuance of necessary licenses, permits or other approvals necessary to
conduct the commercial cannabis activity at no fault of the applicant.
5. For licensees that have ten or more full-time equivalent non-supervisorial
employees, proof that the licensee has entered into and abided by the terms of a labor
peace agreement.
6. Proof that the cannabis business is not delinquent on the submission of any tax
returns or the payment of any taxes due under Chapter 3.48 of this code.
7. Any other information that the local licensing authority deems necessary to
determine whether to renew the local license.
C. All owners of the cannabis business must be fingerprinted each year at renewal
if required in the discretion of the local licensing authority.
D. The local licensing authority shall renew a local license if the licensee has
submitted a complete application and paid the application processing fee, unless the local
licensing authority finds that good cause exists to deny the license renewal.
E. Unless administratively continued pursuant to subsection A, a local license is
immediately invalid upon expiration and the cannabis business shall cease operations. If
a local license expires, the local licensing authority may approve a renewal of the expired
license at any time up to three months from the expiration date of the license. After the
license has been expired for three months, the license may not be renewed by the local
licensing authority, and the holder of the expired license must apply for and obtain a new
cannabis license to resume operations."
-2-
RIV#4889-3092-9927 vi
SECTION 2 AMENDMENT OF SECTION 5.88.040 (LOCAL LICENSE
APPLICATION PROCESS)
Paragraph H of Section 5.88.040 (Local License Application Process) is amended
to read as follows, with additions underlined and deletions struck-through.
"H. A local license issued pursuant to this chapter shall specify the date of
issuance, the period of licensure, the name of the licensee, the address of the
licensed premises, and the nature of the cannabis business licensed. All local
licenses are valid for one year, except that an initial local license shall automatically
expire if the commercial cannabis activities authorized by the license have not
commenced at the premises within eleven (11) months of the date of issuance. If the
licensee has not submitted a tax return pursuant to Section 3.48.080 of this code
showing that commercial cannabis activity is occurring on the premises before the
start of the twelfth (12th) month of the license term, the City will notify the licensee in
writing that their license has been rendered null and void due to the failure to
commence commercial cannabis activity. The licensee is not precluded from applying
for a new cannabis license except as provided in Section 5.88.040(A)."
SECTION 3 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 4 EFFECTIVE DATE
This Ordinance shall take effect on January 1, 2024.
SECTION 5 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.
SECTION 5 CERTIFICATION
The foregoing Ordinance was approved and adopted at a meeting of the City
Council held on the 28th day of June 2023, by the following vote:
Ayes: Councilmembers Gutierrez, Gregory and Ross; Mayor
Pro Tem Carnevale and Mayor Lamb
Noes: None
-3-
RIV#4889-3092-9927 vl
Abstain:
Absent:
Rita amb, Mayor
ATTEST:
Tracey Heimosillo, City Clerk
APPROVED AS TO FORM:
Eric S. il, City Attorney
-4-
RIV#4889-3092-9927 vl