Agenda packet, regular meeting, second session — Banning City Council, May 14, 2024 (part 6 of 6)

3.15.050 Modifications to tax.

A. Notwithstanding Elections Code Section 9217, or the tax rate of ten percent of gross receipts of a cannabis retailer, the city council may, in its discretion without the vote of the people of Banning, do any of the following:

1. Reduce the tax rate for a cannabis retailers;

2. Increase any tax rates established by this chapter, not to exceed the maximum tax rate of fifteen percent of gross receipts for a cannabis retailer;

3. Increase any rates if they had previously been reduced below such rate; and

4. Establish a class of persons that is exempt or excepted from the tax or discontinue any such exemption or exception.

B. In no event shall the city council increase any rates in excess of those rates specified in this chapter without approval by a majority of the voters voting in an election on the increase. (Ord. No. 1528, § 2, 12-11-18)

3.15.060 Reporting and remittance of tax.

A. The cannabis retailer tax imposed by this chapter shall be imposed on a fiscal year basis and shall be due and payable annually.

B. Each person owing a cannabis retailer tax shall, on or before the last day of the month following the close of each fiscal quarter, prepare and submit a tax statement on the form prescribed by the tax administrator and remit to the tax administrator the tax due.

C. Tax statements and payments for all outstanding taxes owed to the city are immediately due to the tax administrator upon cessation of a cannabis retailer for any reason.

D. The tax administrator may, at his or her discretion, establish shorter reporting and payment periods for any cannabis retailer tax.
(Ord. No. 1528, § 2, 12-11-18)

3.15.070 Payments and communications—Timely remittance.

A. Whenever any payment, statement, report, request or other communication is due, it must be received by the tax administrator on or before the final due date. A postmark will not be accepted as timely remittance.

If the due date falls on Saturday, Sunday holiday, or a day city hall is closed, the due date shall be the next regular business day on which city hall is open to the public.

B. Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not received by the tax administrator on or before the due date.
(Ord. No. 1528, § 2, 12-11-18)
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3.15.080 Notice not required by the city.

The tax administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. The tax administrator may, as a courtesy, send a tax notice to the cannabis retailer.

Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
(Ord. No. 1528, § 2, 12-11-18)

3.15.090 Non-payment of tax; penalties and interest.

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 established by resolution of the city council. This penalty provision shall not be construed to preclude or limit the enforcement of the penal provision of this chapter.

B. Whenever a check or electronic payment is submitted as payment for a tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law. (Ord. No. 1528, § 2, 12-11-18)

3.15.100 Refund procedures.

A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in this section. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a cannabis retail business.

B. Whenever the amount of any cannabis retailer tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the city under this chapter, it may be refunded to the taxpayer who paid the tax, or credited towards a future tax liability, provided that a written claim for refund is filed with the tax administrator within one year of the date the tax was originally due and payable.

C. The tax administrator shall have the right to examine and audit all the books and business records of the claimant to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the tax administrator to do so.

D. If the cannabis retailer tax was erroneously paid and the error is attributable to the city, the city shall refund the amount of tax erroneously paid up to one year from when the error was identified. (Ord. No. 1528, § 2, 12-11-18)

3.15.110 Administration of tax.

A. It shall be the duty of the tax administrator to collect the taxes, penalties, fees, and perform the duties required by this chapter.

B. For purposes of administration and enforcement of this chapter generally, the tax administrator may from time to time promulgate such administrative rules and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.
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C. The tax administrator may take such administrative actions as needed to administer the tax, including, but not limited to:

1. Providing to all cannabis retailers forms for the reporting of the tax;

2. Receiving and recording all taxes remitted to the city as provided in this chapter;

3. Maintaining records of taxpayer reports and taxes collected pursuant to this chapter;

4. Assessing penalties and interest to taxpayers pursuant to this chapter;

5. Determining amounts owed and enforcing collection pursuant to this chapter; and

6. Establishing a reasonable process, including set times and secure conditions, whereby taxpayers can pay the taxes imposed by this chapter.
(Ord. No. 1528, § 2, 12-11-18)

3.15.120 Enforcement—Action to collect.

Any taxes, penalties and/or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the city. Any person owing money to the city under the provisions of this chapter shall be liable in an action brought in the name of the city for the recovery of such debt. The provisions of this chapter shall not be deemed a limitation upon the right of the city to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, penalties and/or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.
(Ord. No. 1528, § 2, 12-11-18)

3.15.130 Audit and examination of records.

A. The tax administrator shall have the power to audit and examine all books, records, accounts, inventory and onsite operations of cannabis retailers, including examination of both state and federal income tax returns, sales tax returns, or other evidence documenting the gross receipts of persons engaged in cannabis businesses, and, where necessary, all equipment for the purpose of ascertaining the amount of the cannabis retailer tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to this chapter.

B. It shall be the duty of every person liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of the later of four years from the due date of the return or the date the return is filed, all records as may be necessary to determine the amount of such tax as he or she may have been liable to pay to the city, which records the tax administrator or his/her duly authorized designee shall have the right to inspect at all reasonable times. All records for any period being audited by the city shall be retained until the audit is complete. (Ord. No. 1528, § 2, 12-11-18)

3.15.140 Other licenses, permits, fees.

A. This chapter does not authorize or permit cannabis retailers to operate in the city. Cannabis retailers shall comply with the zoning requirements set forth in chapter 17.54 of this Code and must have a valid cannabis conditional use permit issued by the city council to operate in the city. Cannabis retailers shall also comply with the regulations set forth in chapter 5.33 of this Code and must have a valid cannabis regulatory permit 1216
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issued by the city manager to operate in the city. A cannabis retailer subject to the provisions of this chapter shall also be subject to the business tax requirements set forth in chapter 5.04 of this Code.

B. Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any other provision of this Code or any other ordinance or resolution of the city, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other chapter of this Code or any other ordinance or resolution of the city. Any references made or contained in any other chapter of this code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other chapters of this Code.
(Ord. No. 1528, § 2, 12-11-18)

3.15.150 Payment of tax does not authorize unlawful business.

A. The payment of a cannabis retailer tax required by this chapter, and its acceptance by the city, shall not entitle any person to operate a cannabis retailer unless the person has complied with all of the requirements of this Code, including obtaining a cannabis regulatory permit and a cannabis conditional use permit, and all other applicable state laws.

B. No tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful cannabis retailer, or any cannabis business in violation of any local or state law. (Ord. No. 1528, § 2, 12-11-18)

3.15.160 Appeals procedures.

Any taxpayer aggrieved by any decision of the tax administrator with respect to the amount of tax, interest, penalties and fees, if any, due under this chapter may appeal to the city manager by filing a notice of appeal with the city clerk within thirty days of the serving or mailing of the determination of tax due. The city clerk shall fix a time and place for hearing such appeal, and the city clerk shall give notice in writing to the taxpayer at the last known place of address. The finding of the city manager shall be final and conclusive and shall be served upon the taxpayer in the manner prescribed by this chapter for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice. (Ord. No. 1528, § 2, 12-11-18)

3.15.170 Amendments.

A. This chapter may be amended by the city council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment provision that would increase the rate of any tax levied pursuant to this chapter or extend the tax to a cannabis business that is not included in this chapter. The people of the city affirm that the following actions shall not constitute an increase of the rate of a tax:

1. The restoration of the rate of the tax to a rate that is no higher than that set by this chapter, if the city council has acted to reduce the rate of the tax;

2. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this chapter; 1217
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3. The establishment of a class of persons that is exempt or excepted from the tax or the discontinuation of any such exemption or exception (other than the discontinuation of an exemption or exception specifically set forth in this chapter);

4. The collection of the tax imposed by this chapter, even if the city had, for some period of time, failed to collect the tax; and

5. The deletion, restoration, relocation, renumbering, amendment or alteration of the provisions of this chapter and any provision of the Code affected by this chapter, provided that such action does not establish any new tax or increase any existing tax.

B. The city council may delete, restore, relocate, renumber, amend or alter any of the provisions of this chapter and any provision of this Code affected by the ordinance from which this chapter is derived, provided that such action does not establish any new tax or increase any existing tax. (Ord. No. 1528, § 2, 12-11-18)
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Title 3 - REVENUE AND FINANCE
Chapter 3.17 CANNABIS INDUSTRIAL TAX
Banning, California, Code of Ordinances Created: 2023-11-27 10:36:25 [EST] (Supp. No. 54, 9-23)

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Chapter 3.17 CANNABIS INDUSTRIAL TAX1

3.17.010 Purpose.

This chapter shall be known as the cannabis business tax. It is the intent of the voters to permit the collection of such tax at the maximum rate allowed by state law from every commercial cannabis cultivation, manufacturing, distribution, and laboratory testing facility operating in the city regardless of whether the cannabis business is operating lawfully under state or local law. Nothing in this chapter shall be interpreted to authorize or permit any commercial cannabis activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.
(Ord. No. 1527, § 2, 12-11-18; Ord. No. 1567 , § 3, 11-3-20)

3.17.020 Definitions.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

1 Editor's note(s)—Ord. No. 1567 , § 2, adopted Nov. 3, 2020, changed the title of Ch. 3.17, from "Cannabis Commercial Cultivation, Manufacturing, and Laboratory Testing Facilities Tax" to read as herein set out. 1219
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"Cultivation facility" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. "Distribution facility" means a business that transports cannabis and cannabis products between state licensed cannabis retailers, manufacturers, cultivators and testing laboratories. "Gross receipts" means the total amount of the sale price of all sales and the total amount charged or received for the performance of any act, service or employment of whatever nature it may be for which a charge is made or credit allowed, whether or not such act, service or employment is done as a part of or in connection with the sale of materials, goods, wares, or merchandise. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature, and any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from gross receipts shall be cash discounts allowed and taken on sales, any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser, and such part of the sale price of the property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit. "Testing laboratory facility" means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

1. Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

2. Licensed by the bureau.
"Manufacturing facility" means a location that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
"Tax administrator" means the finance manager of the City of Banning, his or her designee(s), or any other city officer charged with the administration of the provisions of this chapter. (Ord. No. 1527, § 2, 12-11-18; Ord. No. 1567 , § 4, 11-3-20; Ord. No. 1577 , § 5, 9-28-21)

3.17.030 Tax imposed on commercial cannabis cultivation, manufacturing, distribution, and testing laboratory facilities.

A. There is established and imposed upon each person who is engaged in business as a cannabis business an annual cannabis business tax at the rates set forth in this chapter.

B. Every person operating a cultivation facility shall pay to the city an annual cannabis business tax in an amount that is equal to fifteen dollars per square foot of canopy space. The city council, in its discretion, may adjust the tax rate up to a maximum rate of twenty-five dollars per square foot of canopy space.

C. Every person operating a manufacturing facility, distribution facility, or a testing laboratory facility shall pay to the city an annual cannabis business tax in an amount equal to ten percent of the facility's gross receipts.

D. Every person operating a cannabis microbusiness shall pay a tax based on each component of their business.

For example, a cannabis microbusiness shall pay to the city the tax rates that are currently set as follows and that may be modified from time to time pursuant to Sections 3.15.050 and 3.17.050: ten percent of the gross receipts for the retail component of the business as set forth in Section 3.15.030(B); ten percent of the gross 1220
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receipts for the manufacturing component of the business as set forth in Section 3.17.030(C); ten percent of the gross receipts for the distribution component of the business as set forth in Section 3.17.030(C); and for the cultivation component of the business, five dollars per square foot of canopy space for the first year that the cannabis microbusiness is in business, and ten dollars per square foot of canopy space for the second year, and every year thereafter that the cannabis microbusiness is in business, as set forth in Section

3.17.030(B) and as modified by Section 3.17.050(C). For purposes of this subsection, a cannabis microbusiness is considered in business from the date the cannabis microbusiness obtains its certificate of occupancy. In the event of a conflict between the tax imposed by this section and a modified tax imposed by Sections 3.15.050 or 3.17.050, the tax rates set forth in Sections 3.15.050 and 3.17.050 shall prevail.

E. This chapter is enacted solely to raise revenue for unrestricted general revenue and municipal purposes and is intended to be a general tax and is not a special tax. All of the proceeds from the tax imposed by this chapter shall be placed in the city's general fund to finance the general operations of the city. Such operations may include, but are not limited to: paying for basic or enhanced law enforcement or public safety services, park, recreational, and senior services, neighborhood preservation, community services, code enforcement, infrastructure improvement and maintenance, and other such general services. (Ord. No. 1527, § 2, 12-11-18; Ord. No. 1567 , §§ 5, 6, 11-3-20; Ord. No. 1577 , § 6, 9-28-21) Editor's note(s)—Ord. No. 1567 , § 5, adopted Nov. 3, 2020, changed the title of § 3.17.030 from "Tax imposed on commercial cannabis cultivation, manufacturing and testing laboratory facilities" to read as herein set out.

3.17.040 Tax can be spent for unrestricted general revenue purposes.

The tax revenue generated from the taxes established by this chapter can be spent for unrestricted general revenue purposes.
(Ord. No. 1527, § 2, 12-11-18)

3.17.050 Modifications to tax.

A. Notwithstanding Elections Code Section 9217, or the tax rate of fifteen dollars per square foot of canopy space for a cultivation facility or the tax rate of ten percent of gross receipts of a manufacturing facility, distribution facility, or testing laboratory facility, the city council may, in its discretion without the vote of the people of Banning, do any of the following:

1. Reduce the tax rate for these cannabis businesses;

2. Increase any tax rates established by this chapter, not to exceed the maximum tax rate of twenty-five dollars per square foot of canopy space for a cannabis cultivation facility and not to exceed ten percent of gross receipts of a cannabis manufacturing, distribution, or testing laboratory facility;

3. Increase any rates if they had previously been reduced below such rate; and

4. Establish a class of persons that is exempt or excepted from the tax or discontinue any such exemption or exception.

B. In no event shall the city council increase any rates in excess of those rates specified in this chapter without approval by a majority of the voters voting in an election on the increase.

C. Effective November 3, 2020, the city council has reduced the tax rate for cannabis cultivation facilities from the rate set forth in subsection A above, to the following new rates:
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1. Five dollars per square foot of canopy space for the first year that the cultivation facility is in business.

For purposes of this Section, a cultivation facility is considered in business from the date the cultivation facility obtains its certificate of occupancy; and

2. Ten dollars per square foot of canopy space for the second year, and every year thereafter, that the cultivation facility is in business.
(Ord. No. 1527, § 2, 12-11-18; Ord. No. 1564 , § 2, 6-23-20; Ord. No. 1567 , § 7, 11-3-20)

3.17.060 Exemption from tax.

The provisions of this chapter shall not apply to personal cannabis cultivation as defined in the Medicinal and Adult-Use Cannabis Regulation and Safety Act or any subsequent state legislation regarding the same. This chapter shall not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and for which the individual receives no compensation whatsoever related to that personal use. (Ord. No. 1527, § 2, 12-11-18)

3.17.070 Reporting and remittance of tax.

A. The cannabis business tax imposed by this chapter shall be imposed on a fiscal year basis and shall be due and payable annually.

B. Each person owing a cannabis business tax shall, on or before the last day of the month following the close of each fiscal quarter, prepare and submit a tax statement on the form prescribed by the tax administrator and remit to the tax administrator the tax due.

C. Tax statements and payments for all outstanding taxes owed to the city are immediately due to the tax administrator upon cessation of a cannabis business for any reason.

D. The tax administrator may, at his or her discretion, establish shorter reporting and payment periods for any cannabis business tax.
(Ord. No. 1527, § 2, 12-11-18)

3.17.080 Payments and communications—Timely remittance.

If the due date falls on Saturday, Sunday holiday, or a day City Hall is closed, the due date shall be the next regular business day on which City Hall is open to the public.

3.17.090 Notice not required by the city.

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Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.
(Ord. No. 1527, § 2, 12-11-18)

3.17.100 Non-payment of tax; penalties and interest.

A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest established by resolution of the city council. This penalty provision shall not be construed to preclude or limit the enforcement of the penal provision of this chapter.

B. Whenever a check or electronic payment is submitted as payment for a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law.
(Ord. No. 1527, § 2, 12-11-18)

3.17.110 Refund procedures.

B. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the city under this chapter, it may be refunded to the taxpayer who paid the tax, or credited towards a future tax liability, provided that a written claim for refund is filed with the tax administrator within one year of the date the tax was originally due and payable.

D. If the cannabis business tax was erroneously paid and the error is attributable to the city, the city shall refund the amount of tax erroneously paid up to one year from when the error was identified. (Ord. No. 1527, § 2, 12-11-18)

3.17.120 Administration of tax.

A. It shall be the duty of the tax administrator to collect the taxes, penalties, fees, and perform the duties required by this chapter.

C. The tax administrator may take such administrative actions as needed to administer the tax, including but not limited to:

1. Providing to all cannabis businesses taxpayers forms for the reporting of the tax; 1223
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2. Receiving and recording all taxes remitted to the city as provided in this chapter;

3. Maintaining records of taxpayer reports and taxes collected pursuant to this chapter;

4. Assessing penalties and interest to taxpayers pursuant to this chapter;

5. Determining amounts owed and enforcing collection pursuant to this chapter; and

6. Establishing a reasonable process, including set times and secure conditions, whereby taxpayers can pay the taxes imposed by this chapter.
(Ord. No. 1527, § 2, 12-11-18)

3.17.130 Enforcement—Action to collect.

3.17.140 Audit and examination of records.

A. The tax administrator shall have the power to audit and examine all books, records, accounts, inventory and onsite operations of persons engaged in cannabis businesses related to the business, including examination of both state and federal income tax returns, sales tax returns, or other evidence documenting the gross receipts of persons engaged in cannabis businesses, and, where necessary, all equipment, of any person engaged in cannabis businesses in the city, for the purpose of ascertaining the amount of cannabis business tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to this chapter.

3.17.150 Other licenses, permits, fees.

A. This chapter does not authorize or permit cannabis retailers to operate in the city. Cannabis retailers shall comply with the zoning requirements set forth in chapter 17.53 of this Code and must have a valid cannabis conditional use permit issued by the city council to operate in the city. Cannabis retailers shall also comply with the regulations set forth in chapter 5.35 of this Code and must have a valid cannabis regulatory permit issued by the city manager to operate in the city.

B. A cannabis business subject to the provisions of this chapter shall also be subject to the business tax requirements set forth in chapter 5.04 of this Code. Nothing contained in this chapter shall be deemed to 1224
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repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any other provision of this Code or any other ordinance or resolution of the city, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other chapter of this Code or any other ordinance or resolution of the city. Any references made or contained in any other chapter of this Code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other chapters of this Code. (Ord. No. 1527, § 2, 12-11-18)

3.17.160 Payment of tax does not authorize unlawful business.

A. The payment of a cannabis business tax required by this chapter, and its acceptance by the city, shall not entitle any person to operate a cannabis business unless the person has complied with all of the requirements of this Code, including obtaining a cannabis regulatory permit and a cannabis conditional use permit, and all other applicable state laws.

B. No tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any cannabis business in violation of any local or state law. (Ord. No. 1527, § 2, 12-11-18)

3.17.170 Appeals procedures.

3.17.180 Amendments.

1. The restoration of the rate of the tax to a rate that is no higher than that set by this chapter, if the city council has acted to reduce the rate of the tax;

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4. The collection of the tax imposed by this chapter, even if the city had, for some period of time, failed to collect the tax; and

B. The city council may delete, restore, relocate, renumber, amend or alter any of the provisions of this chapter and any provision of the Code affected by this chapter, provided that such action does not establish any new tax or increase any existing tax.
(Ord. No. 1527, § 2, 12-11-18)
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Title 5 - BUSINESS LICENSES AND REGULATIONS
Chapter 5.33 CANNABIS RETAILER REGULATORY PERMITS
Banning, California, Code of Ordinances Created: 2023-11-27 10:36:30 [EST] (Supp. No. 54, 9-23)

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Chapter 5.33 CANNABIS RETAILER REGULATORY PERMITS

5.33.010 Definitions.

For the purpose of this chapter, the following words and phrases shall be defined as follows:
"Applicant" means the business entity that is the owner and operator of the cannabis business that is applying for a cannabis regulatory permit pursuant to this chapter. "Bureau" means the Bureau of Cannabis Control within the California Department of Consumer Affairs. "Cannabis" means all parts of the plant cannabis sativa linnaeus, cannabis indica, or cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.
"Cannabis business" means a cannabis retailer.
"Cannabis microbusiness" means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) a cannabis retailer, (2) a manufacturing facility, (3) a cultivation facility with canopy space of less than ten thousand square feet, and (4) a cannabis distribution facility. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses. Any term used in this definition that is not defined herein shall have the same definition as set forth in Section 5.35.010.
"Cannabis products" has the same meaning as in Section 11018.1 of the Health and Safety Code. "Cannabis retailer" means a cannabis business that engages in the retail sale and delivery of cannabis or cannabis products to customers.
"City" means the City of Banning.
"City manager" means the city manager or his/her designee. "Convicted" or "conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or engaging in any other cannabis activity that requires a state license issued by a licensing authority. "Eligible property" or "eligible properties" means any property located within the highway serving commercial zone that meets the location requirements set forth in Chapter 17.54. "Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations, as the same may be amended from time to time. 1227
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"Licensing authority" means the Bureau of Cannabis Control; CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA); the California Department of Public Health's Manufactured Cannabis Safety Branch; or any other state cannabis licensing authority. "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 permit or a permittee, 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 permit. An owner who is an individual participating in the direction, control, or management of the commercial or retail cannabis business includes any of the following:
a. A partner of a cannabis business that is organized as a partnership. b. A member of a limited liability company of a cannabis business that is organized as a limited liability company.
c. An officer or director of a cannabis business that is organized as a corporation. "Permit" means a cannabis retailer regulatory permit issued under this chapter. "Permittee" means any person holding a permit under this chapter. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, non-profit, or any other group or combination acting as a unit, and the plural as well as the singular.
"Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial or retail cannabis activity will be or is conducted.
"Significant discrepancy" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a permittee's inventory. (Ord. No. 1532, § 2, 11-13-18; Ord. No. 1538, § 1, 1-8-19; Ord. No. 1577 , § 7, 9-28-21)

5.33.020 Cannabis regulatory permit required.

A. No person shall establish, or operate a cannabis business within the city unless the person has:

1. A valid business license;

2. A valid permit issued by the city pursuant to this chapter;

3. A valid conditional use permit issued pursuant to Chapter 17.54; and

4. A valid license issued by the bureau to conduct the specific commercial cannabis activity that is being conducted on the premises.

B. Each cannabis business shall obtain a separate permit. Permits are nontransferable and will only be issued to the entity that will own and operate the cannabis business.

C. Any permit that is issued shall not go into effect unless a conditional use permit is also issued by the city council pursuant to Chapter 17.54.
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D. A permit issued pursuant to this chapter is valid for a term of one year from the date of issuance. Renewal terms shall not exceed one year.

E. A cannabis microbusiness is not subject to the requirements of this Chapter 5.33 and is instead regulated pursuant to Chapter 5.35.
(Ord. No. 1532, § 2, 11-13-18; Ord. No. 1538, § 2, 1-8-19; Ord. No. 1577 , § 8, 9-28-21)

5.33.030 Cannabis regulatory permit application requirements.

A. An owner of a cannabis business may apply for a permit, on behalf of a cannabis business, by filing an application with the city manager.

B. A cannabis business may only submit one application. If a cannabis business has multiple owners, only one owner may submit an application on behalf of the cannabis business. Multiple cannabis businesses may submit an application to operate at the same eligible property in the city. However, consistent with Section

17.54.030(B), a cannabis business shall not be permitted to operate at multiple locations in the city, nor shall a cannabis business be issued a permit if any owner or person with a financial interest in the cannabis business is also an owner or has a financial interest in any other cannabis business that is operating in the city or that has obtained a permit to operate in the city.

C. No person shall knowingly make a false statement of fact or knowingly omit any information that is required in the permit application.

D. Applications shall not be accepted or processed unless the applicant pays the nonrefundable application fee in the amount to be established by resolution of the city council.

E. Applications will be accepted by appointment only and the applicant must adhere to the application procedures adopted by resolution of the city council.

F. The application shall be on a form approved by the city manager and shall include, but not be limited to, the following:

1. The type of cannabis business the applicant seeks to operate in the city, a description of the commercial cannabis activity that will be conducted on the premises, and a general description of the products that will be sold on or from the premises.

2. A description of the statutory entity or business form that will serve as the legal structure for the cannabis business; a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement; and the name and address of its agent for purposes of service of process.

3. A list of every fictitious business name the cannabis business is operating under.

4. The legal name of the applicant.

5. The current name and primary and secondary telephone numbers and email addresses of at least one twenty-four hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the cannabis business.

6. If applicable, the business trade name ("DBA") of the cannabis business.

7. A list of the license types and the license numbers issued by any licensing authority to the applicant, or any other owner of the cannabis business, including the date the license was issued, the date the license will terminate and the licensing authority that issued the license. 1229
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8. Whether the applicant, or any owners of the cannabis business, have been denied a license or have had a license suspended or revoked by any licensing authority. The applicant shall identify the type of license applied for, the name of the licensing authority that denied the application, and the date of denial.

9. The assessor's parcel number and the physical address of the premises where the cannabis business will be conducted, the telephone number for the premises, and the website address and email address of the cannabis business. If the cannabis business will be conducted on a lot that is vacant at the time that the application is submitted, then the applicant shall amend the application at such time that a physical address and telephone number is issued for the cannabis business.

10. The cannabis business' federal employer identification number.

11. The physical address of any other premises owned or operated by the applicant, or any other owner of the cannabis business, and a brief summary of the business operations at each premises.

12. A complete list of every owner of, or person with a financial interest in, the cannabis business. Each individual named on this list shall submit the following information:
a. Their full name.
b. Their title within the applicant entity, if applicable. c. Their date of birth and place of birth.
d. Their social security number or individual taxpayer identification number. e. Their mailing address.
f. Their home, business, or mobile telephone number and email address. g. Their current employer.
h. Their percentage of ownership interest held in the applicant entity, or other financial interest held in the applicant entity.
i. Whether the individual has an ownership or a financial interest in any other cannabis business licensed by a licensing authority.
j. A copy of the individual's government-issued identification that includes the name, date of birth, physical description and picture of the owner or person with a financial interest in the cannabis business.
k. A copy of a DOJ background check for each owner and person with a financial interest in the cannabis business procured through a Live Scan provider. l. If applicable, a copy of any certificate of rehabilitation issued under Penal Code Section 4852.01 or dismissal issued pursuant to Penal Code Section 1203.4 or 1203.41. m. If applicable, a detailed description of any suspension or revocation of a cannabis related license or sanctions for unlicensed or unlawful cannabis activity by a state or local governmental agency against the applicant, or any of its owners or persons with a financial interest in the cannabis business, or any business entity in which the applicant or any of its owners or person with a financial interest in the cannabis business was an owner or officer within the five years immediately preceding the date of the application.
n. If applicable, a detailed description of any civil and/or criminal suit and/or judgment relating to unlawful cannabis activity against the applicant or any of its owners or person with a financial interest in the cannabis business, or a business entity in which the applicant or any of its owners 1230
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or persons with a financial interest in the cannabis business was an owner or officer within the five years immediately preceding the date of the application.

13. A copy of the applicant's application with the bureau to operate a cannabis retailer in the city.

14. A list of all owners, managers, and employees that are authorized to carry concealed weapons.

15. A written, notarized statement from the owner of the property where the cannabis business will operate evidencing unqualified consent to the applicant operating a cannabis business on the property.

The statement must specify the street address (unless the property is a vacant lot) and assessor's parcel number for the premises. The statement shall also contain the name, business address, email address and telephone number of the property owner(s) (whether business entity or individual). If applicable, a copy of the rental agreement shall also be provided.

16. If the applicant is the landowner upon which the premises is located, a copy of the title or deed to the property.

17. Evidence that the cannabis business will be compliant with the location restrictions set forth in Business and Professions Code Section 26054(b) and the zoning restrictions set forth in Title 17 of this Code.

18. A premises diagram which meets the requirements set forth in Section 5006 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

19. The proposed hours of operation.

20. Authorization and consent for city staff and the police department to seek verification of the information contained within the application.

21. An agreement whereby the applicant and the cannabis business:
a. Release the City of Banning, its agents, officers, elected officials, employees and attorneys, from any and all claims, injuries, damages or liabilities of any kind arising from any repeal or amendment of this chapter or any other provision of this Code, and any arrest or prosecution of the owners, managers, agents, employees, members or volunteers of the cannabis business for violation of state or federal laws; and
b. Defend, indemnify and hold harmless the City of Banning, and its agents, officers, elected officials, employees, and attorneys from and against any and all claims or actions brought by adjacent or nearby property owners or any other parties for any damages, injuries or other liability of any kind arising from the operation of the cannabis business.

22. Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true and accurate. I understand that a misrepresentation of fact, whether intentional or not, is cause for rejection of this application, denial of the permit, or revocation of a permit issued.

G. Nothing in this section is intended to limit the city manager's ability to request additional information the city manager deems necessary or relevant to determining a cannabis business' suitability for a permit. An applicant shall provide any additional information requested by the city manager no later than seven days after the request, unless otherwise specified by the city manager. (Ord. No. 1532, § 2, 11-13-18; Ord. No. 1538, § 3, 1-8-19; Ord. No. 1565 , § 3, 7-14-20) Editor's note(s)—Ord. No. 1538, § 3, adopted Jan. 8, 2019, repealed § 5.33.030, which pertained to cannabis regulatory permit—fees and term and derived from Ord. No. 1532, § 2, adopted Nov. 13, 2018, and renumbered § 5.33.040, cannabis regulatory permit application requirements as § 5.33.030. Similar provisions may currently be found at Section 5.35.030.
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5.33.040 Lottery.

A. City staff shall establish and conduct a lottery for determining which cannabis businesses will (1) be issued a cannabis regulatory permit, and (2) be eligible to apply for a cannabis conditional use permit pursuant to the provisions of Chapter 17.54.

B. The city council shall adopt a resolution setting forth the procedures that will be followed in conducting the lottery, and the steps to be included in a schedule that will be prepared for the receipt and review of applications for cannabis retail regulatory permits. The city manager is hereby authorized to make any necessary changes to the lottery procedures and steps to be included in the schedule as he or she deems appropriate.
(Ord. No. 1538, § 4, 1-8-19)

5.33.050 Decision on cannabis regulatory permit.

A. The city manager, in consultation with chief of police, shall evaluate all completed applications that are submitted by the application deadline and determine whether the applicant can participate in the lottery.

The applicant shall be ineligible to participate in the lottery, if the city manager determines that one or more of the following conditions exist:

1. The applicant has not paid all fees required for consideration of the application.

2. The application is incomplete, filed late, or is otherwise not responsive to the requirements of this chapter.

3. The application contains a false or misleading statement or omission of a material fact.

4. The applicant, or any owner or person with a financial interest in the cannabis business, is not at least twenty-one years old.

5. The applicant, or any owner or person with a financial interest in the cannabis business, has unpaid and overdue administrative penalties imposed for violations of this Code.

6. The applicant, or any owner or person with a financial interest in the cannabis business, has an unpaid civil judgment imposed for violation(s) of this Code.

7. The applicant, or any owner or person with a financial interest in the cannabis business is delinquent on any fee, charge for service or tax levied by the State of California or the city.

8. The applicant, or any owner or person with a financial interest in the cannabis business, has, within the five years preceding the date the application is filed with the community development director, been (1) convicted of engaging in unlawful commercial cannabis activity; (2) issued an uncontested administrative citation by a city, county, or city and county for engaging in unlawful cannabis-related activity; or (3) been the subject of a lawsuit for engaging in unlawful cannabis-related activity in which the applicant or owner was not the prevailing party.

9. The applicant, or any owner or person with a financial interest in the cannabis business, has been denied a license or permit or other authorization to engage in commercial cannabis activity by a state or local licensing or permitting authority, for any reason other than the fact that the applicant was not selected for a limited number of licenses or permits, but would have otherwise qualified to obtain the license or permit.

10. The applicant, or any owner or person with a financial interest in the cannabis business is employed by the city's police department or the city's community development department. 1232
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11. The applicant, or any of owner or persons with a financial interest in the cannabis business, has been convicted of any crime set forth in Business and Professions Code Section 26057(b)(4), Fish and Game Code Sections 12025 or 12025.1, Penal Code section 186.22 or any other offense which is substantially related to the qualifications, functions, or duties of the cannabis business for which the application is made. In determining whether such offense is "substantially related," the city manager shall consult with the city attorney and thereafter apply the analysis set forth in Section 5017 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

12. The premises or the operation of the applicant's cannabis business, as described in its application, would fail to comply with any provision of this Code, or any state law or regulation.

13. Operation of the cannabis business in the manner proposed poses a threat to the public health, safety or welfare, or violates any provision of this chapter.

B. If none of the above-referenced conditions exist, the city manager, or his or her designee, shall notify the applicant that the cannabis business is eligible to participate in the lottery. If any of the above-referenced conditions exist, the city manager shall notify the applicant that the cannabis business has been denied the opportunity to participate in the lottery and has been denied a cannabis regulatory permit. Any notice of denial shall set forth the reasons of denial and advise the applicant of the right to contest the denial pursuant to the procedures set forth in Section 5.33.060.

C. This subsection shall govern the process by which cannabis regulatory permits are issued to the first three retailers selected in the lottery. Within seven business days of the lottery being conducted, the city manager, or his or her designee, shall issue a cannabis regulatory permit to the first three retailers that were selected in the lottery and shall notify the applicants that they are eligible to apply for a cannabis conditional use permit. The first three retailers selected in the lottery shall have thirteen months from the date the lottery was conducted, May 23, 2019, to obtain a conditional use permit. Failure by any retailer to obtain a conditional use permit within the thirteen month period will preclude that retailer from being able to obtain a conditional use permit to operate in the City.

D. The applicants that were not the first three retailers selected in the lottery will be placed on a waiting list in the order that they were selected in the lottery. The City Council may adopt a resolution establishing the terms, time, manner, and procedures by which additional cannabis regulatory permits may be issued to cannabis retailers that are on the waiting list. Any cannabis retailer, other than the first three retailers selected in the lottery, that obtains a cannabis regulatory permit must submit a complete conditional use permit application pursuant to Chapter 17.54 within ninety days of issuance of the cannabis regulatory permit. Any cannabis regulatory permit shall be deemed null and void if the applicant therefor has not submitted a complete cannabis conditional use permit application to the City and had that application deemed complete by City within ninety days of the issuance of the cannabis regulatory permit. (Ord. No. 1532, § 2, 11-13-18; Ord. No. 1538, § 3, 1-8-19; Ord. No. 1565 , § 4, 7-14-20) Editor's note(s)—Ord. No. 1538, § 5, adopted Jan. 8, 2019, repealed § 5.33.050, which pertained to additional application requirements and derived from Ord. No. 1532, § 2, adopted Nov. 13, 2018, and renumbered §

5.33.060, decision on cannabis regulatory permit as § 5.33.050. Similar provisions may currently be found at Section 5.35.050.

5.33.060 Lottery appeals.

A. If an applicant is denied the opportunity to participate in the lottery due to the applicant's failure to submit a complete application by the required deadline, failure to satisfy the criteria for issuance of a permit, or for any other reason, the applicant may appeal this decision in writing. The written appeal shall be filed with the community development department, by the deadline set forth in a resolution adopted by the city council, 1233
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and shall be accompanied by an appeal fee. After the deadline to appeal has passed, the decision to deny the cannabis regulatory permit shall be deemed final, and may no longer be appealed.

B. Upon receipt of a timely appeal, the community development director shall make arrangements for the selection of a hearing officer to conduct the appeal hearing. Not less than seven days prior to the appeal hearing, the community development director shall notify the city manager, chief of police, and the appellant of either: the name of the administrative law judge who will serve as the hearing officer, or any other option determined by the City to serve as a fair and impartial process to hear the appeal. The hearing officer shall be fair and impartial and shall have no bias for or against the city manager, chief of police, or the appellant. The appeal shall be heard within thirty days of the submittal of an appeal but may be extended for due cause including scheduling limitations of the hearing officer.

C. At the appeal hearing, the hearing officer shall receive oral and written evidence from the city manager and the appellant. The hearing officer shall have authority to administer oaths to those persons who will provide oral testimony. The evidence presented need not comply with the strict rules of evidence set forth in the California Evidence Code but shall be the type of evidence upon which reasonable and prudent people rely upon in the conduct of serious affairs. The hearing officer shall have broad authority to control the proceedings and to provide for cross examination of witness in a fair and impartial manner. The city manager shall have the burden of proof to establish by clear and convincing evidence the facts upon which his or her decision is based. The appeal hearing shall be recorded by audio recording. Any party may, at its sole cost and expense, utilize the services of a certified court reporter to prepare the verbatim record of the hearing. If a court reporter is used, the transcript prepared shall be made available for purchase to both parties. The hearing officer may continue the appeal hearing from time to time, but only upon written motion of a party showing good cause for the continuance.

D. The hearing officer may uphold or reverse the decision of the city manager. Within seven days of the conclusion of the appeal hearing, the hearing officer shall render his or her decision and make written findings supporting the decision. He or she shall send the decision to the community development director.

Upon receipt of the hearing officer's decision, the community development director shall send a copy of it to the city manager and the appellant, along with a proof of mailing. The hearing officer's decision shall be final. (Ord. No. 1538, § 6, 1-8-19; Ord. No. 1565 , § 5, 7-14-20)

5.33.070 City manager authority.

A. The city manager is authorized to adopt policies, rules, and procedures to implement and interpret this chapter, and is further authorized to waive any requirements set forth in this chapter so long as the requirement being waived is applied equally to all applicants.

B. Upon approval of a permit or renewal of a permit, the city manager may impose conditions in excess of the requirements set forth in this chapter including, but not limited to, conditions relating to the operation of any cannabis business and restrictions relating to the deployment or use of the types of equipment used on the premises.

C. During the term of any permit, the city manager may impose additional conditions on a permit when reasonably necessary to abate a violation of this Code or to protect the public health, safety or welfare.

D. Review of any decision by the city manager to impose additional conditions on a permit pursuant to this section shall be pursuant to Section 5.33.130.
(Ord. No. 1538, § 7, 1-8-19)
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Editor's note(s)—Ord. No. 1538, § 7, adopted Jan. 8, 2019, amended § 5.33.070 in its entirety to read as herein set out. Former § 5.33.070 pertained to approval of cannabis regulatory permit with conditions, and derived from Ord. No. 1532, § 2, adopted Nov. 13, 2018.

5.33.080 Cannabis regulatory permit renewal.

A. To renew a permit, a completed permit renewal form, payment of the permit renewal application fee, payment of the permit fee, and, if applicable, the late fee required by subsection D of this section shall be received by the city no earlier than sixty calendar days before the expiration of the permit and no later than 5:00 p.m. on the last business day before the expiration of the permit. Failure to receive a notice for permit renewal does not relieve a permittee of the obligation to renew all permits as required.

B. An application for a permit renewal shall contain the following:

1. The name of the permittee. For a permittee who is a business entity, the permittee shall provide the legal business name of the applicant.

2. The permit number and expiration date.

3. The permittee's address of record and premises address.

4. An attestation that all information provided to the city in the original application for a permit is accurate and current.

C. In the event the permit is not renewed prior to the expiration date, the permittee shall not engage in commercial cannabis activity until the permit is renewed.

D. A permittee may submit a permit renewal application up to thirty calendar days after the permit expires. In addition to the application fee for renewal of the permit, the permittee submitting a renewal application pursuant to this subsection shall pay a late fee in an amount established by resolution of the city council. The payment of a late fee shall not be grounds for a defense against prosecution or enforcement of this Code on the basis that the permittee operated a cannabis business without a valid or unexpired permit nor shall it be considered as a setoff to any assessment, fine, penalty or recoupment of costs of enforcement attributable to said violation.

E. The city manager, in consultation with the chief of police, shall evaluate the renewal application and determine whether to renew the permit based on the criteria set forth in section 5.33.050. In addition, the city manager, in consultation with the chief of police, shall evaluate whether the premises is substantially different from the diagram submitted by the applicant, in that the size, layout, location of common entryways, doorways or passage ways, means of public entry or exit, or limited access areas within the premises is not the same. If the premises is substantially different, the city manager may deny the renewal application. Review of any decision by the city manager to deny a request to renew a permit shall be pursuant to section 5.33.130.
(Ord. No. 1532, § 2, 11-13-18; Ord. No. 1538, § 8, 1-8-19)

5.33.090 Premises.

A. A permittee shall not, without the prior written approval of the city manager, make a physical change, alteration, or modification of the premises that alters the premises or the use of the premises from the premises diagram filed with the permit application. Material or substantial changes, alterations or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway or passage alters or changes limited-access areas within the premises. 1235
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B. If an application for a permit renewal was denied by the city manager, or the city manager revokes or suspends a cannabis regulatory permit, the applicant shall have ten calendar days from the date the notice of the disposition was deposited in the mail within which to appeal the city manager's decision to the city council. If the tenth calendar day falls on a day the city is closed, the time shall be extended to the next business day.

C. A permittee shall not sublet the premises.
(Ord. No. 1532, § 2, 11-13-18; Ord. No. 1538, § 9, 1-8-19)

5.33.100 Notification of criminal, civil or administrative action.

A. A permittee shall ensure that the city manager is notified in writing of the criminal conviction of a permittee, owner, or employee or when a permittee, owner, or employee has been charged with a criminal offense.

Notice shall either be by mail or electronic mail and shall occur within forty-eight hours of the conviction or charge. The written notification shall include the date of conviction or charge, the court docket number, the name of the court in which the permittee was convicted or charged, and the specific offense(s) for which the permittee was convicted or charged.

B. A permittee shall ensure that the city manager is notified in writing of a civil penalty or judgment rendered against the permittee or any owner either by mail or electronic mail, within forty-eight hours of delivery of the verdict or entry of judgment, whichever is earlier. The written notification shall include the date of verdict or entry of judgment, the court docket number, the name of the court in which the matter was adjudicated, and a description of the civil penalty or judgment rendered against the permittee.

C. A permittee shall ensure that the city manager is notified in writing of the revocation or suspension of a license or other authorization for a cannabis business issued by a licensing authority within forty-eight hours of receiving notice of the revocation. The written notification shall include the name of the licensing authority involved, a written explanation of the proceeding or enforcement action, and the specific violation(s) that led to revocation or suspension.
(Ord. No. 1532, § 2, 11-13-18)

5.33.110 Notification of theft, loss, or criminal activity.

A. A permittee shall notify the city manager and the chief of police within twenty-four hours of discovery of any of the following situations:

1. The permittee discovers a significant discrepancy in its inventory.

2. The permittee becomes aware of, or has reason to suspect, diversion, theft, loss or any other criminal activity pertaining to the operations of the permittee by any owner, person with a financial interest in the cannabis business, employee, agent or volunteer of the cannabis business or by any third party.

3. The permittee becomes aware of, or has reason to suspect, any breach of security.

B. The notification required by this section shall be in writing and include the date and time of discovery of the occurrence of the theft or loss, the date of the occurrence of the theft or loss and a description of the incident including, when applicable, the items that were taken or lost. (Ord. No. 1532, § 2, 11-13-18)
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5.33.120 Suspending, modifying, or revoking permits.

A. The city manager may suspend, modify, further condition or revoke any permit pursuant to the provisions of this chapter for any of the following reasons:

1. The permittee, or any of its owners, has violated a term or condition of its permit issued pursuant to this chapter or a term or condition of a license issued by a licensing authority.

2. The permittee, or any of its owners, has violated this Code or the laws or regulations of the state.

3. The permittee or any other person performed work as an employee or volunteer or acquired a financial interest in the applicant as an owner without first undergoing fingerprinting and a DOJ/NCIC background check.

4. The permittee failed to pay a fine or administrative penalty when due.

5. The permittee failed to take reasonable steps, as defined in Section 5808 of Title 16 of the California Code of Regulations, as the same may be amended from time to time, to correct nuisance conditions on the premises, including the immediately adjacent area that is owned, leased, or occupied by the permittee, within a reasonable time after receipt of notice to abate the condition.

6. The permittee knowingly engaged in the illegal sale, or negotiations for the sale, of controlled substances, as defined in Section 5805 of Title 16 of the California Code of Regulations, upon the premises. Successive sale, or negotiations for sale, over any continuous period of time shall be deemed evidence of permission.

B. A permittee whose permit has been suspended shall conspicuously display a notice on the exterior of the permittee's premises for the duration of the suspension, and ensure that the notice remains continuously in place for the time specified. The notice shall be in at least twenty-four point type and provide as follows:

NOTICE OF SUSPENSION

THE CANNABIS RETAILER REGULATORY PERMIT ISSUED FOR THIS PREMISES HAS BEEN SUSPENDED FOR

VIOLATION OF THE BANNING MUNICIPAL CODE
C. A permittee whose permit has been revoked shall conspicuously display a notice on the exterior of the premises indicating that the permit has been revoked. The notice shall remain continuously on the premises for at least fifteen calendar days. The notice shall be in at least twenty-four point type and provide as follows:

NOTICE OF REVOCATION

THE CANNABIS RETAILER REGULATORY PERMIT ISSUED FOR THIS PREMISES HAS BEEN REVOKED FOR

VIOLATION OF THE BANNING MUNICIPAL CODE
D. Action taken by the city manager with respect to the suspension, modification, or revocation of a cannabis regulatory permit shall be final and conclusive. Any permit aggrieved by the suspension, modification or revocation of a cannabis regulatory permit may obtain review of such decision by appeal to the city council pursuant to Section 5.33.130.
(Ord. No. 1532, § 2, 11-13-18)

5.33.130 Initiation of discipline and appeals.

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certified mail return receipt requested, to the permittee's business address, as set forth in the permit. The notice shall inform the permittee of its right to appeal the determination of the city manager by sending written notice of appeal and the grounds for such appeal to the city manager no later than ten calendar days after the date in which the notice of suspension, revocation or intention to impose additional conditions was mailed. Failure to timely appeal shall result in a forfeiture of the right of appeal, and the determination of the city manager shall be final.

B. If an application for a permit was denied by the city manager, the applicant shall have ten calendar days from the date the notice of the disposition was deposited in the mail within which to appeal the denial of the application to the city council. If the tenth calendar day falls on a day the city is closed, the time shall be extended to the next business day.

C. The appeal shall be submitted in writing to the city clerk. Upon receipt of a timely notice of appeal, that is accompanied by the appropriate filing fee in an amount set by resolution of the city council, the city clerk shall set the matter for hearing. Unless continued for good cause demonstrated, appeals shall be heard by the city council within sixty calendar days of the date notice of appeal was received by the clerk. If an appeal is timely and properly filed together with the filling fee, any suspension or revocation is stayed during the pendency of the appeal.

D. If the appeal is timely and properly filed together with the filing fee, the city clerk shall mail notice of the date, time and place of a hearing before the city council to the applicant at least ten days prior to the hearing. The hearing shall be commenced at the earliest possible date authorized by law.

E. After considering all of the testimony and evidence submitted at said hearing, the city council shall decide the appeal based upon a preponderance of the evidence and issue written findings of fact no later than ten days after the hearing. Hearings before the city council shall not be bound by formal rules of evidence.

Hearsay evidence may be received; however, in no event shall a decision be based solely on hearsay evidence.

F. Within five business days after the city council acts on the appeal, the city clerk shall send to the applicant, by certified mail, return receipt requested, written notice of the disposition of the appeal.

G. Any permittee aggrieved by the decision of the city council may obtain review of the order within ninety days of notice by filing with the Riverside County Superior Court a petition for review pursuant to California Code of Civil Procedure Section 1094.5. For purposes of this subsection, notice shall be the date that the decision of the city council is mailed by first-class mail, postage prepaid, with a certificate of mailing. (Ord. No. 1532, § 2, 11-13-18)

5.33.140 Non-disciplinary modification of cannabis regulatory permit.

A. The city manager may eliminate, modify or add to any condition imposed on a permittee. The elimination of a condition or conditions may only be approved by the city manager when he or she deems the condition not be necessary to protect the health, safety or welfare of the public. The modification or addition of conditions may be approved by the city manager when he or she deems such action reasonably necessary to protect the health, safety or welfare of the public or to otherwise secure compliance with the requirements set forth in this Code. The action taken on the permit and the grounds for such action shall be made in writing and sent by certified mail return receipt requested to the permittee's business address, as set forth in the permit.

B. The action by the city manager taken pursuant to this section may be made in conjunction with disciplinary action, in lieu of disciplinary action, or independent of disciplinary action.

C. Any person aggrieved by the action of the city manager may appeal the decision pursuant to the procedures set forth in Section 5.33.130.
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(Ord. No. 1532, § 2, 11-13-18)

5.33.150 Notification of changes.

A. A permittee shall notify the city manager in writing within ten calendar days of any change to any item listed in the application. The notification shall be signed by an owner.

B. No person or entity may gain a financial interest in the permittee if said person or entity is determined by the city manager to have a disqualifying conviction within the meaning of Business and Professions Code Section 26057 or is otherwise barred by reason of this chapter.

C. If one of more of the owners of a permittee change, a new permit application and fee shall be submitted to the city within ten business days of the effective date of the ownership change. A change in ownership occurs when the person receiving its interest in the cannabis business meets the definition of an owner. A change in ownership does not occur when one or more owners leave the business by transferring their ownership interest to the other existing owner(s).
(Ord. No. 1532, § 2, 11-13-18)

5.33.160 Remedies and public nuisance.

A. The procedures set forth in this chapter shall be cumulative and in addition to any other procedure or legal remedy provided for in this Code or the laws of the state. Nothing in this chapter shall be deemed to prevent the city from commencing alternative administrative, civil or criminal proceedings. Any violation of this chapter may be subject to injunctive relief, revocation of any permit issued by the city, disgorgement and payment to the city of any and all money unlawfully obtained, costs of abatement, investigation and attorney fees or any other relief or remedy available at law or equity.

B. The city attorney is authorized to institute administrative action pursuant to Chapters 1.20 through 1.28 of this Code and to institute civil or criminal action in the Riverside County Superior Court in order to enforce the provisions of this chapter and those provisions set forth in Title 17 of this Code relating to land use for cannabis businesses.

C. A violation of any section within this chapter is a public nuisance. (Ord. No. 1532, § 2, 11-13-18)

5.33.170 Joint and several liability.

All permittees and owners shall be jointly and severally liable for violation of any provision set forth in this chapter.
(Ord. No. 1532, § 2, 11-13-18)
Chapter 5.34 MARIJUANA CULTIVATION1

1 Editor's note(s)—Ord. No. 1506, § 1, adopted March 14, 2017, repealed the former Ch. 5.34, §§ 5.34.010—

5.34.080, and enacted a new Ch. 5.34 as set out herein. The former Ch. 5.34 pertained to similar subject matter and derived from Ord. No. 1505, § 1, adopted Dec. 12, 2016. 1239
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5.34.010 Purpose.

A. The purpose of this chapter is to prevent community-wide adverse impacts including, but not limited to, increased criminal activity, fire and chemical hazards, objectionable odors, late night traffic, and the general deterioration of neighborhoods associated with marijuana cultivation.

B. Marijuana cultivation in the city can adversely affect the health, safety and well-being of city residents.

Therefore, reasonable regulation of marijuana cultivation is proper and necessary to avoid the concentration of substantial amounts of marijuana in one place and to avoid the risks of criminal activity, degradation of the natural environment, malodorous smells, and indoor electrical fire hazards that may result from unregulated marijuana cultivation.
(Ord. No. 1506, § 1, 3-14-17)

5.34.020 Definitions.

For the purposes of this chapter, the following definition shall apply:
"Childcare center" shall mean any licensed childcare center, daycare center, childcare home, or any preschool.
"Church" shall mean any structure or leased portion of a structure, which is used primarily for religious worship and related religious activities.
"Commercial cannabis activity" shall mean the possession, processing, transporting, obtaining, purchasing or giving away, storing, cultivation, or manufacture of marijuana for compensation or sale. "Commercial cannabis activity" shall also mean the laboratory testing, distribution, delivery, dispensing, mobile dispensing, or mobile delivery of marijuana.
"Community center" shall mean any facility open to the public at which classes, social activities, recreational activities, educational activities, support and public information are offered for all residents of the community. "Detached accessory structure" shall mean a building completely detached from a residence that complies with the California Building Code and has a complete roof enclosure supported by connecting walls extending from the ground to the roof, a foundation, slab or equivalent base to which the floor is secured by bolts or similar attachments, is secure against unauthorized entry, and is accessible only through one or more lockable doors.

Walls and roofs must be constructed of solid materials that cannot be easily broken through, such as two-inch by four-inch or thicker studs overlaid with three-eighths inch or thicker plywood or the equivalent. Exterior walls must be constructed with nontransparent material. Plastic sheeting, regardless or gauge, or similar products do not satisfy this requirement.
"Enforcement officer" shall mean the chief of police, building official, code enforcement official, environmental health department director, public health officer, agricultural commissioner, fire chief, clerk of the board of supervisors, or their designees.
"Indoors" shall mean within a fully enclosed and secure building. "Marijuana" means all parts of the plant cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It includes marijuana infused in foodstuff. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except resin extracted therefrom), fiber, oil, or cake, or the sterilized seeds of the plant that are incapable of germination. 1240
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"Marijuana cultivation" or "marijuana cultivation activities" shall mean the planting, growing, harvesting, drying, processing, or storage of one or more marijuana plants or any part thereof. "Marijuana cultivation permit" shall mean a permit issued by the city to a person over the age of twenty-one for the purposes of engaging in marijuana cultivation activities pursuant to this chapter. "Marijuana cultivation permit holder" shall mean the applicant named on the application for a massage cultivation permit.
"Marijuana plant" shall mean any mature or immature marijuana plant, or any marijuana seedling. "Park" shall mean any public playground, public recreation center or area, and other public areas created, established, designed, maintained, provided, or set aside by the county, and city or any other public entity or agency, for the purposes of public rest, play, recreation, enjoyment or assembly, and all buildings and structures located thereon or therein.
"Premises" shall mean a single parcel of property. Where contiguous parcels are under common ownership or control, such contiguous parcels shall be counted as a single "premises" for purposes of this chapter. "Primary caregiver" shall have the same meaning as set forth in Health and Safety Code sections 11362.5 and 11362.7, et seq.
"Qualified patient" shall have the same meaning as set forth in Health and Safety Code sections 11326.5 and 11362.7, et seq.
"Rear yard" shall mean the rear open space portion of any premises, whether fenced or unfenced. "Residential unit" means any building or portion thereof legally existing which contains living facilities, including provisions for sleeping, eating, cooking, and sanitation on a premises or legal parcel located within a residential or agricultural-residential zoning district. "Responsible party" shall mean: (1) each person committing the violation or causing a condition on a premises located within the jurisdiction of the city which violates this chapter; (2) each person who has an ownership interest in that premises; or (3) each person who, although not an owner, nevertheless occupies or has a legal right or a legal obligation to exercise possession or control over that premises. In the event a person who commits the violation or causes the violation is a minor, then the minor's parents or legal guardian shall be deemed the responsible party.
"School" shall mean any institution of learning for minors, whether public or private, offering a regular course of instruction required by the California Education Code. This definition includes a nursery school, kindergarten, elementary school, middle or junior high school, senior high school, or any special institution of education; excluding home school, vocational or professional institution of higher education, including a community college, junior college, college or university. (Ord. No. 1506, § 1, 3-14-17)

5.34.030 Site location, operation, and development standards.

Non-commercial cultivation of small amounts of marijuana for personal use is only permitted in the Ranch Agriculture (R/A), Ranch Agriculture -Hillside (R/A/H), Rural Residential (RR), Rural Residential - Hillside (RR/H), Very Low Density Residential (VLDR), Low Density Residential (LDR), Medium Density Residential (MDR) and High Density Residential (HDR) zones when all of the following conditions and standards are met:

A. Generally.

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participate in marijuana cultivation in more than one location within the city. Marijuana cultivation activities may only occur within a residential unit, garage or self-contained accessory structure that is secured, locked and fully enclosed.

2. From the public right-of-way, there shall be no exterior evidence of marijuana cultivation.

3. Prior to the commencement of any marijuana cultivation, the party responsible for the marijuana cultivation shall provide the city with adequate proof of a city marijuana cultivation permit.

4. The marijuana cultivation area shall not adversely affect the health or safety of the nearby residents by creating dust, glare, excessive light, heat, noise, noxious gases, odors, smoke, traffic, vibration, or other impacts, and shall not be hazardous due to the use of storage of materials, processes, products or waste.

5. Cultivation shall not exceed six marijuana plants of any size per residential unit, and subject to the issuance of marijuana cultivation permit. The maximum number of plants shall be limited regardless of the number of qualified patients or primary caregivers residing on the property.

6. Marijuana cultivation activities shall not be upon any property or parcel containing a childcare center, school or church. Furthermore, the marijuana cultivation activities do not take place within one thousand feet of any school, childcare center, public park, government building, or church. The one thousand feet shall be measured from the closest property line of the school, childcare center, public park, government building or church, to the closest property line of the cultivation parcel.

7. Indoor grow lights shall not exceed one thousand two hundred watts and shall comply with the California Building, Electrical and Fire Codes as adopted by the city.

8. Any location used for marijuana cultivation must have a ventilation and filtration system installed that shall prevent marijuana plant odors from exiting the interior of the structure and shall comply with California Building Code section 402.3 (Mechanical Ventilation). The ventilation and filtration system must be approved by the enforcement officer and installed prior to the commencement of marijuana cultivation activities.

9. Marijuana cultivation activities shall not be accessible to persons under eighteen years of age.

B. Marijuana cultivation within residential units, specifically. In addition to those requirements listed in Subsection A. of this section, marijuana cultivation activities within a residential unit shall also comply with the following requirements:

1. The residential unit shall, at all times, maintain a kitchen, bathroom, and primary bedroom(s) for their intended purpose, and shall not be used for marijuana cultivation.

2. Any marijuana cultivation activities shall not create humidity, mold, or other nuisance condition.

C. Marijuana cultivation within detached accessory structures, specifically. In addition to those requirements listed in Subsection A. of this section, marijuana cultivation activities within a detached accessory structure shall also comply with the following requirements:

1. The structure shall be no smaller than one hundred twenty square feet in size.

2. The structure shall be located within the rear yard area of any legal parcel or premises.

3. The structure shall maintain a minimum setback of ten feet from any property line.

4. The structure shall be fully-enclosed and the area surrounding the structure must be enclosed by a solid fence at least six feet in height. The fence must be adequately secure to prevent unauthorized entry. Bushes, hedgerows, plastic sheeting, tarps or cloth material shall not constitute an adequate fence under this subsection.
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5. The structure shall maintain adequate mechanical or electronic security systems, approved by the enforcement officer, and shall install such systems prior to the commencement of cultivation.

6. Any accessory structure used for marijuana cultivation must have a valid building permit issued by the city building official. The building official shall consult with the planning director and enforcement officers in consideration of any building permit application seeking a building permit for the construction or alteration of any detached accessory structure to be used for marijuana cultivation.
(Ord. No. 1506, § 1, 3-14-17)

5.34.040 Other applicable regulations.

A. There shall be no variances or deviations permitted to any standards or requirements within this chapter.

B. Nothing in this chapter is intended to authorize the cultivation, possession, or use of marijuana in violation of state law.
(Ord. No. 1506, § 1, 3-14-17)

5.34.050 Marijuana cultivation permit.

A. Prior to commencing any marijuana cultivation, the person(s) owning, leasing, renting, occupying, or having charge or possession of any legal parcel or premises where marijuana cultivation is proposed to occur must apply for a marijuana cultivation permit within the city. The following information will be required with the initial permit application and subsequent permit extensions:

1. Adequate proof that the permit holder is twenty-one years of age or older;

2. Notarized signature from the owner of the property consenting to the cultivation of marijuana at the premises on a form acceptable to the city;

3. The name of each person owning, leasing, occupying or having charge of any legal parcel or premises where marijuana will be cultivated;

4. The physical site address of where marijuana will be cultivated;

5. A signed consent form, acceptable to the city, authorizing enforcement officers to conduct an inspection of the detached accessory structure used for marijuana cultivation upon twenty-four hours' notice;
B. The permit shall be valid for no more than one year and may be extended in increments of two years.

C. The enforcement officer may, in his or her discretion, deny any application for a marijuana cultivation permit, or extension thereof, where he or she finds, based on articulated facts, that the issuance of such permit, or extension thereof, would be detrimental to the public health, safety, or welfare. The enforcement officer shall deny an application for a marijuana cultivation permit, or extension thereof, which does not demonstrate satisfaction of the minimum requirements of this chapter. The denial of any permit application or extension shall be subject to appeal by the city council.

D. The city council may establish a fee or fees required to be paid upon filing of an application for a marijuana cultivation permit, as provided by this chapter, which fees shall not exceed the reasonable costs of administering this chapter.
(Ord. No. 1506, § 1, 3-14-17)
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5.34.060 Revocation of marijuana cultivation permit.

A. Any marijuana cultivation permit granted by the city shall become null and void if the city receives and substantiates two complaints of noxious odors resulting from indoor marijuana cultivation within a twelve month period. These complaints must originate from at least two separate individuals and two separate properties adjoining, or within proximity to, the property engaging in marijuana cultivation.

B. Upon revocation of a marijuana cultivation permit, the responsible party, property owner, tenant, or permittee shall remove all marijuana plants from the premises within thirty days of official notice from any enforcement officer.
(Ord. No. 1506, § 1, 3-14-17)

5.34.070 Appeals.

Any person aggrieved by the requirements of this chapter may file an appeal pursuant to the requirements of Chapter 5.04 of the Banning Municipal Code.
(Ord. No. 1506, § 1, 3-14-17)

5.34.080 Prohibited activities declared a public nuisance.

A. It is unlawful and a public nuisance for any person owning, leasing, renting, occupying, or having charge or possession of any legal parcel or premises within any zoning district in the city to cause or allow such parcel or premises to be used for the outdoor cultivation of marijuana plants.

B. It is unlawful and a public nuisance for any person to cultivate marijuana inside any residential building or structure without a marijuana cultivation permit issued by the city.

C. It is unlawful and a public nuisance for any person to engage in commercial cannabis activity in any area of the city.

D. It is unlawful and a public nuisance for any person to use gas products, such as CO 2 , butane, propane, and natural gas, for the cultivation, extraction, or processing of marijuana.

E. It is unlawful and a public nuisance for any person to use generators for marijuana cultivation activities.

F. In addition to the foregoing, any use or condition caused or permitted to exist in violation of any of the provisions of this chapter shall be and is hereby declared a public nuisance and may be abated by the city or subject to any available legal remedies, including but not limited to, civil injunctions. The prohibitions outlined in this chapter shall be imposed regardless of the number of qualified patients or primary caregivers residing at the premises or participating directly or indirectly in the cultivation. Further, this prohibition shall be imposed notwithstanding any assertion that the person(s) cultivating marijuana are the primary caregiver(s) for qualified patients or that such person(s) are collectively or cooperatively cultivating marijuana.
(Ord. No. 1506, § 1, 3-14-17)

5.34.090 Enforcement, violations and penalties.

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deemed a separate offense. This section provides a civil penalty remedy that is in addition to all other legal remedies, criminal or civil, which may be pursued by the city to address any violation of this chapter. (Ord. No. 1506, § 1, 3-14-17)
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Title 5 - BUSINESS LICENSES AND REGULATIONS
Chapter 5.34 MARIJUANA CULTIVATION
Banning, California, Code of Ordinances Created: 2023-11-27 10:36:31 [EST] (Supp. No. 54, 9-23)

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Chapter 5.34 MARIJUANA CULTIVATION1

5.34.010 Purpose.

B. Marijuana cultivation in the city can adversely affect the health, safety and well-being of city residents.

5.34.020 Definitions.

1 Editor's note(s)—Ord. No. 1506, § 1, adopted March 14, 2017, repealed the former Ch. 5.34, §§ 5.34.010—

5.34.080, and enacted a new Ch. 5.34 as set out herein. The former Ch. 5.34 pertained to similar subject matter and derived from Ord. No. 1505, § 1, adopted Dec. 12, 2016. 1246
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(Supp. No. 54, 9-23)

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"Enforcement officer" shall mean the chief of police, building official, code enforcement official, environmental health department director, public health officer, agricultural commissioner, fire chief, clerk of the board of supervisors, or their designees.
"Indoors" shall mean within a fully enclosed and secure building. "Marijuana" means all parts of the plant cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It includes marijuana infused in foodstuff. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except resin extracted therefrom), fiber, oil, or cake, or the sterilized seeds of the plant that are incapable of germination. "Marijuana cultivation" or "marijuana cultivation activities" shall mean the planting, growing, harvesting, drying, processing, or storage of one or more marijuana plants or any part thereof. "Marijuana cultivation permit" shall mean a permit issued by the city to a person over the age of twenty-one for the purposes of engaging in marijuana cultivation activities pursuant to this chapter. "Marijuana cultivation permit holder" shall mean the applicant named on the application for a massage cultivation permit.
"Marijuana plant" shall mean any mature or immature marijuana plant, or any marijuana seedling. "Park" shall mean any public playground, public recreation center or area, and other public areas created, established, designed, maintained, provided, or set aside by the county, and city or any other public entity or agency, for the purposes of public rest, play, recreation, enjoyment or assembly, and all buildings and structures located thereon or therein.
"Premises" shall mean a single parcel of property. Where contiguous parcels are under common ownership or control, such contiguous parcels shall be counted as a single "premises" for purposes of this chapter. "Primary caregiver" shall have the same meaning as set forth in Health and Safety Code sections 11362.5 and 11362.7, et seq.
"Qualified patient" shall have the same meaning as set forth in Health and Safety Code sections 11326.5 and 11362.7, et seq.
"Rear yard" shall mean the rear open space portion of any premises, whether fenced or unfenced. "Residential unit" means any building or portion thereof legally existing which contains living facilities, including provisions for sleeping, eating, cooking, and sanitation on a premises or legal parcel located within a residential or agricultural-residential zoning district. "Responsible party" shall mean: (1) each person committing the violation or causing a condition on a premises located within the jurisdiction of the city which violates this chapter; (2) each person who has an ownership interest in that premises; or (3) each person who, although not an owner, nevertheless occupies or has a legal right or a legal obligation to exercise possession or control over that premises. In the event a person who commits the violation or causes the violation is a minor, then the minor's parents or legal guardian shall be deemed the responsible party.
"School" shall mean any institution of learning for minors, whether public or private, offering a regular course of instruction required by the California Education Code. This definition includes a nursery school, kindergarten, elementary school, middle or junior high school, senior high school, or any special institution of education; excluding home school, vocational or professional institution of higher education, including a community college, junior college, college or university. (Ord. No. 1506, § 1, 3-14-17)
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5.34.030 Site location, operation, and development standards.

A. Generally.

1. Marijuana cultivation is permitted only on parcels with residential units where the marijuana cultivation permit holder resides full-time. Marijuana cultivation permit holders shall not participate in marijuana cultivation in more than one location within the city. Marijuana cultivation activities may only occur within a residential unit, garage or self-contained accessory structure that is secured, locked and fully enclosed.

2. From the public right-of-way, there shall be no exterior evidence of marijuana cultivation.

3. Prior to the commencement of any marijuana cultivation, the party responsible for the marijuana cultivation shall provide the city with adequate proof of a city marijuana cultivation permit.

7. Indoor grow lights shall not exceed one thousand two hundred watts and shall comply with the California Building, Electrical and Fire Codes as adopted by the city.

9. Marijuana cultivation activities shall not be accessible to persons under eighteen years of age.

1. The residential unit shall, at all times, maintain a kitchen, bathroom, and primary bedroom(s) for their intended purpose, and shall not be used for marijuana cultivation.

2. Any marijuana cultivation activities shall not create humidity, mold, or other nuisance condition. 1248
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1. The structure shall be no smaller than one hundred twenty square feet in size.

2. The structure shall be located within the rear yard area of any legal parcel or premises.

3. The structure shall maintain a minimum setback of ten feet from any property line.

5. The structure shall maintain adequate mechanical or electronic security systems, approved by the enforcement officer, and shall install such systems prior to the commencement of cultivation.

5.34.040 Other applicable regulations.

A. There shall be no variances or deviations permitted to any standards or requirements within this chapter.

B. Nothing in this chapter is intended to authorize the cultivation, possession, or use of marijuana in violation of state law.
(Ord. No. 1506, § 1, 3-14-17)

5.34.050 Marijuana cultivation permit.

1. Adequate proof that the permit holder is twenty-one years of age or older;

2. Notarized signature from the owner of the property consenting to the cultivation of marijuana at the premises on a form acceptable to the city;

3. The name of each person owning, leasing, occupying or having charge of any legal parcel or premises where marijuana will be cultivated;

4. The physical site address of where marijuana will be cultivated;

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5.34.060 Revocation of marijuana cultivation permit.

5.34.070 Appeals.

Any person aggrieved by the requirements of this chapter may file an appeal pursuant to the requirements of Chapter 5.04 of the Banning Municipal Code.
(Ord. No. 1506, § 1, 3-14-17)

5.34.080 Prohibited activities declared a public nuisance.

B. It is unlawful and a public nuisance for any person to cultivate marijuana inside any residential building or structure without a marijuana cultivation permit issued by the city.

C. It is unlawful and a public nuisance for any person to engage in commercial cannabis activity in any area of the city.

D. It is unlawful and a public nuisance for any person to use gas products, such as CO 2 , butane, propane, and natural gas, for the cultivation, extraction, or processing of marijuana.

E. It is unlawful and a public nuisance for any person to use generators for marijuana cultivation activities.

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residing at the premises or participating directly or indirectly in the cultivation. Further, this prohibition shall be imposed notwithstanding any assertion that the person(s) cultivating marijuana are the primary caregiver(s) for qualified patients or that such person(s) are collectively or cooperatively cultivating marijuana.
(Ord. No. 1506, § 1, 3-14-17)

5.34.090 Enforcement, violations and penalties.

In the discretion of the enforcement officer, any person violating the provisions of this chapter shall be issued an administrative citation pursuant to Banning Municipal Code Chapter 1.20. Each such violation shall be deemed a separate offense. This section provides a civil penalty remedy that is in addition to all other legal remedies, criminal or civil, which may be pursued by the city to address any violation of this chapter. (Ord. No. 1506, § 1, 3-14-17)
1251
Title 5 - BUSINESS LICENSES AND REGULATIONS
Chapter 5.35 CANNABIS REGULATORY PERMITS
Banning, California, Code of Ordinances Created: 2023-11-27 10:36:31 [EST] (Supp. No. 54, 9-23)

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Chapter 5.35 CANNABIS REGULATORY PERMITS

5.35.010 Definitions.

For the purpose of this chapter, the following words and phrases shall be defined as follows:
"Applicant" means an owner applying for a cannabis regulatory permit pursuant to this chapter. "Bureau" means the Bureau of Cannabis Control within the California Department of Consumer Affairs. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by section 11018.5 of the Health and Safety Code.
"Cannabis business" means a cultivation facility, a manufacturing facility, testing laboratory facility, distribution facility, or a cannabis microbusiness.
"Cannabis distribution" means the procurement, sale and transport of cannabis goods between state licensed cannabis retailers, manufacturers, cultivators and testing laboratories. "Cannabis distribution facility" means a facility that transports cannabis goods between state licensed cannabis retailers, manufacturers, cultivators and testing laboratories. "Cannabis goods" means cannabis, including dried flower, and cannabis products. "Cannabis microbusiness" means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) a cannabis retailer (as defined in Section 5.33.010), (2) a manufacturing facility, (3) a cultivation facility with canopy space of less than 10,000 square feet, and (4) a cannabis distribution facility. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses. "Cannabis products" has the same meaning as in section 11018.1 of the Health and Safety Code. "Canopy space" means the designated areas at a cultivation facility that will contain mature plants at any point in time.
"City" means the City of Banning.
"City manager" means the city manager or his/her designee. "Convicted" or "conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or engaging in any other cannabis activity that requires a state license issued by a licensing authority. 1252
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"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Cultivation facility" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. "Extraction" means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.
"Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations, as the same may be amended from time to time. "Indoors" means within a fully enclosed and secure structure. "Infusion" means a process by which cannabis, cannabinoids, or cannabis concentrates, are directly incorporated into a product formulation to produce a cannabis product. "Licensing authority" means the Bureau of Cannabis Control; CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA); the California Department of Public Health's Manufactured Cannabis Safety Branch; or any other state cannabis licensing authority. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
"Manufacturing facility" means a location that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "Outdoors" means any area or location not specifically meeting the definition of indoors. "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 permit or a permittee, 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.

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"Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, non-profit, or any other group or combination acting as a unit, and the plural as well as the singular.
"Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or permittee where the commercial cannabis activity will be or is conducted.
"Significant discrepancy" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a permittee's inventory. "Testing laboratory" means a laboratory, facility, or entity in the city that offers or performs tests of cannabis or cannabis products and that is both of the following:

1. Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

2. Licensed by the bureau.
"Volatile solvent" means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.
(Ord. No. 1524, § 2, 7-10-18; Ord. No. 1565 , § 6, 7-14-20; Ord. No. 1577 , § 9, 9-28-21)

5.35.020 Cannabis regulatory permit required.

A. No person shall establish, operate or engage in commercial cannabis activity within the city unless the person has:

1. A valid business license;

2. A valid permit issued by the city pursuant to this chapter;

3. A valid conditional use permit issued pursuant to Chapter 17.53; and

4. A valid license issued by a licensing authority to conduct the specific commercial cannabis activity that is being conducted on the premises.

B. The city manager, in consultation with the chief of police, shall evaluate and issue or deny a permit within forty-five days of receipt of a completed application.

C. Any permit that is issued shall not go into effect unless a conditional use permit is also issued by the city council pursuant to Chapter 17.53.
(Ord. No. 1524, § 2, 7-10-18)

5.35.030 Cannabis regulatory permit—Fees and term.

A. No permit shall be issued unless the applicant pays the nonrefundable application fee and a nonrefundable permit fee in amounts to be established by resolution of the city council.

B. A permit issued pursuant to this chapter is valid for a term of one year from the date of issuance. Renewal terms shall not exceed one year.
(Ord. No. 1524, § 2, 7-10-18)
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5.35.040 Cannabis regulatory permit application requirements.

A. Each cannabis business shall obtain a separate permit. Permits are nontransferable.

B. An owner of a cannabis business may apply for a permit or permit renewal by filing an application with the city manager. Only an owner of a cannabis business may submit an application for a permit or permit renewal.

C. No person shall knowingly make a false statement of fact or knowingly omit any information that is required in an application for a permit or permit renewal.

D. The application shall be on a form approved by the city manager and shall include, but not be limited to, the following:

1. The type of cannabis business the applicant seeks to operate in the city, and a description of the commercial cannabis activity that will be conducted on the premises.

2. Payment of a nonrefundable application fee in an amount to be established by resolution of the city council.

3. A description of the statutory entity or business form that will serve as the legal structure for the applicant; a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement, and fictitious business name statement; and the name and address of its agent for purposes of service of process.

4. A list of every fictitious business name the applicant is operating under.

5. The first and last name, primary phone number, date of birth, social security number, and mailing address of each owner. If the permit is to be held in the name of a business entity, the owner shall also provide the legal name of the business.

6. The current name and primary and secondary telephone numbers and email addresses of at least one twenty-four hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the cannabis business.

7. If applicable, the business trade name ("DBA") of the applicant.

8. A list of the license types and the license numbers issued by any licensing authority that the applicant holds, including the date the license was issued, the date the license will terminate and the licensing authority that issued the license.

9. Whether the applicant, or any owners, has been denied a license or has had a license suspended or revoked by any licensing authority. The applicant shall identify the type of license applied for, the name of the licensing authority that denied the application, and the date of denial.

10. The assessor's parcel number and the physical address of the premises where business will be conducted, the telephone number for the premises, and the website address and email address of the applicant's business. If the business will be conducted on a lot that is vacant at the time that the application is submitted, then the applicant shall amend the application at such time that a physical address and telephone number is issued for the cannabis business.

11. The cannabis business' federal employer identification number.

12. The physical address of any other premises owned or operated by the applicant and a brief summary of the business operations at each premises.
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13. A complete list of every individual, who is not an owner, that has a financial interest in the cannabis business.

14. A complete list of every owner of the cannabis business. Each individual named on this list shall submit the following information:
a. The full name of the owner.
b. The owner's title within the applicant entity.
c. The owner's date of birth and place of birth.
d. The owner's social security number or individual taxpayer identification number. e. The owner's mailing address.
f. The owner's home, business, or mobile telephone number and email address. g. The owner's current employer.
h. The owner's percentage of ownership interest held in the applicant entity. i. Whether the owner has an ownership or a financial interest in any other cannabis business licensed by a licensing authority.
j. A copy of the owner's government-issued identification that includes the name, date of birth, physical description and picture of the owner.
k. A copy of a DOJ background check for each owner and person with a financial interest in the cannabis business procured from a Live Scan provider.
l. If applicable, a copy of any certificate of rehabilitation issued under Penal Code Section 4852.01 or dismissal issued pursuant to Penal Code Section 1203.4 or 1203.41. m. If applicable, a detailed description of any suspension or revocation of a cannabis related license or sanctions for unlicensed or unlawful cannabis activity by a state or local governmental agency against the applicant or any of its owners or any business entity in which the applicant or any of its owners was an owner or officer within the five years immediately preceding the date of the application.
n. If applicable, a detailed description of any civil and/or criminal suit and/or judgment relating to unlawful cannabis activity against the applicant or any of its owners or a business entity in which the applicant or any of its owners was an owner or officer within the five years immediately preceding the date of the application.

15. A list of all owners, managers, and employees that are authorized to carry concealed weapons.

16. A written, notarized statement from the owner of the property where the cannabis business will operate evidencing unqualified consent to the applicant operating a cannabis business on the property.

17. If the applicant is the landowner upon which the premises is located, a copy of the title or deed to the property.

18. Evidence that the cannabis business will be compliant with the location restrictions set forth in Business and Professions Code Section 26054(b) and the zoning restrictions set forth in Title 17 of this Code.
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19. A premises diagram which meets the requirements set forth in Section 5006 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

20. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on premises of the cannabis business. The security plan must be prepared by a licensed security company or individual licensed by the state. The license number shall be on the face of the security plan.

21. A detailed plan describing the air treatment system, or other methods which will be implemented to completely prevent odors generated from cannabis from being detected outside the buildings on the cannabis business site.

22. The proposed hours of operation.

23. Authorization and consent for city staff and the police department to seek verification of the information contained within the application.

24. An agreement whereby the applicant:
a. Releases the City of Banning, its agents, officers, elected officials, employees and attorneys, from any and all claims, injuries, damages or liabilities of any kind arising from any repeal or amendment of this chapter or any other provision of this Code, and any arrest or prosecution of the applicant or its managers, agents, employees, members or volunteers for violation of state or federal laws; and
b. Defends, indemnifies and holds harmless the City of Banning, and its agents, officers, elected officials, employees, and attorneys from and against any and all claims or actions brought by adjacent or nearby property owners or any other parties for any damages, injuries or other liability of any kind arising from operations at the cannabis business.

25. Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true and accurate. I understand that a misrepresentation of fact, whether intentional or not, is cause for rejection of this application, denial of the permit, or revocation of a permit issued.

D. Nothing in this section is intended to limit the city manager's ability to request additional information the city manager deems necessary or relevant to determining an applicant's suitability for a permit or renewal of a permit. An applicant shall provide any additional information requested by the city manager no later than seven days after the request, unless otherwise specified by the city manager. (Ord. No. 1524, § 2, 7-10-18; Ord. No. 1565 , § 7, 7-14-20)

5.35.050 Additional application requirements.

In addition to requirements set forth in Section 5.35.040 above, an application shall also include the following, as applicable:

A. Cannabis Cultivation Facilities. An application to operate a cannabis cultivation facility shall also contain the following information:

1. A site plan and floor plan prepared by a registered civil engineer clearly identifying that the proposed canopy space is a minimum of ten thousand square feet in size, and a maximum of twenty-two thousand square feet in size, and that the cultivation activities will occur indoors only.

B. Cannabis Manufacturing Facilities. An application to operate a cannabis cultivation facility shall also contain the following information:
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1. A detailed description of the manufacturing activity that will be conducted on the cannabis business including the type of activity that will be conducted (extraction, infusion, packaging, labeling), a description of the extraction and/or infusion methods, and the types of products that will be manufactured, packaged and labeled. The description must include a statement that volatile solvents will not be used by the manufacturing facility.

C. Cannabis Laboratory Testing Facilities. An application to operate a cannabis cultivation facility shall also contain the following information:

1. Proof of ISO/IEC 17025 accreditation by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

D. Cannabis Distribution Facilities.

1. A detailed site plan showing where cannabis and cannabis products will be stored, and the entry/exit points of where cannabis and cannabis products will be moved off-site and received into the distribution facility.

2. A list of the individuals and vehicles authorized to conduct transportation on behalf of the distributor. This list shall be updated within seven business days of a new employee being hired to transport cannabis goods or a new vehicle being purchased or leased by the distribution facility to transport cannabis goods.

E. Cannabis Microbusiness.

1. Detailed plans prepared by a registered civil engineer showing the following:
a. If the cannabis microbusiness includes a cultivation component, a site plan and floor plan identifying (i) the location of proposed canopy space, (ii) that the canopy space is less than ten thousand square feet in size, and (iii) that cannabis cultivation will occur indoors only. b. If the cannabis microbusiness includes a distribution component, a site plan and floor plan identifying where cannabis and cannabis products will be stored, and the entry/exit points of where cannabis and cannabis products will be moved off-site and received into the cannabis business.
c. If the cannabis microbusiness includes a retail component, a premises diagram that meets the requirements set forth in Section 5006 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

2. If the cannabis microbusiness includes a manufacturing component, a detailed description of the manufacturing activity that will be conducted on the cannabis business including the type of activity that will be conducted (extraction, infusion, packaging, labeling), a description of the extraction and/or infusion methods, and the types of products that will be manufactured, packaged and labeled. The description must include a statement that volatile solvents will not be used by the manufacturing facility.

3. If the cannabis microbusiness includes a distribution or retailer component, a list of the individuals and vehicles (make, model, license plate number) authorized to conduct transportation or delivery on behalf of the cannabis business. This list shall be updated within seven business days of a new employee being hired to transport cannabis goods or a new vehicle being purchased or leased by the cannabis business to transport cannabis goods.

4. If the cannabis microbusiness includes a retailer component, then the neighborhood context map identified in Section 17.53.040(D) above must also identify any residentially zoned parcel that is located within two hundred feet of the premises.
(Ord. No. 1524, § 2, 7-10-18; Ord. No. 1565 , § 8, 7-14-20; Ord. No. 1577 , § 10, 9-28-21) 1258
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5.35.060 Decision on cannabis regulatory permit.

A. The city manager, in consultation with the police chief, shall evaluate the application and determine whether to approve or deny the permit or permit renewal application. The city manager shall deny a permit application or the renewal of a permit application if he or she determines that one or more of the following conditions exist:

1. The applicant has not paid all fees required for consideration of the application.

2. The application is incomplete, filed late, or is otherwise not responsive to the requirements of this chapter.

3. The application contains a false or misleading statement or omission of a material fact.

4. The applicant, or any owner or person with a financial interest in the cannabis business, is not at least twenty-one years old.

5. The applicant, or any owner or person with a financial interest in the cannabis business, has unpaid and overdue administrative penalties imposed for violations of this Code.

6. The applicant, or any owner or person with a financial interest in the cannabis business, has an unpaid civil judgment imposed for violation(s) of this Code.

7. The applicant, or any owner or person with a financial interest in the cannabis business is delinquent on any fee, charge for service or tax levied by the State of California or the city.

8. The applicant, or any owner or person with a financial interest in the cannabis business, has, within the five years preceding the date the application is filed with the city manager, been (1) convicted of engaging in unlawful commercial cannabis activity; (2) issued an uncontested administrative citation by a city, county, or city and county for engaging in unlawful cannabis-related activity; or (3) been the subject of a lawsuit for engaging in unlawful cannabis-related activity in which the applicant or owner was not the prevailing party.

10. The applicant, or any owner or person with a financial interest in the cannabis business is employed by the city's police department or the city's community development department.

11. The applicant, or any of owner or persons with a financial interest in the cannabis business, has been convicted of any crime set forth in Business and Professions Code Section 26057(b)(4), Fish and Game Code Sections 12025 or 12025.1, Penal Code Section 186.22 or any other offense which is substantially related to the qualifications, functions, or duties of the cannabis business for which application is made. In determining whether such offense is "substantially related," the city manager shall consult with the city attorney and thereafter apply the analysis set forth in Section 5017 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

12. The premises or the operation of the applicant's cannabis business, as described in its application, would fail to comply with any provision of this Code, or any state law or regulation.

13. For permit renewal applications, the premises is substantially different from the diagram submitted by the applicant, in that the size, layout, location of common entryways, doorways or passage ways, means of public entry or exit, or limited access areas within the premises is not the same.

14. Operation of the cannabis business in the manner proposed poses a threat to the public health, safety or welfare, or violates any provision of this chapter.
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B. If none of the above-referenced conditions exist, the city manager shall approve the permit application.

C. Within sixty days of receiving a completed application for a permit, the city manager shall notify the applicant in writing whether the permit application is approved or denied. If the city manager denies the permit, the notice of denial shall set forth the reasons for denial and advise the applicant of the right to contest the denial pursuant to the procedures set forth in Section 5.35.130. Any notice required pursuant to this subsection shall be sent by certified mail, return receipt requested. (Ord. No. 1524, § 2, 7-10-18)

5.35.070 Approval of cannabis regulatory permit with conditions.

A. Upon approval of a permit or renewal of a permit, the city manager may impose conditions in excess of the requirements set forth in this chapter including, but not limited to, conditions relating to the operation of any cannabis business and restrictions relating to the deployment or use of the types of equipment used on the premises.

B. During the term of any permit, the city manager may impose additional conditions on a permit when reasonably necessary to abate a violation of this Code or to protect the public health, safety or welfare.

C. Review of any decision by the city manager to impose additional conditions on a permit pursuant to this section shall be pursuant to Section 5.35.130.
(Ord. No. 1524, § 2, 7-10-18)

5.35.080 Cannabis regulatory permit renewal.

B. An application for a permit renewal shall contain the following:

1. The name of the permittee. For a permittee who is a business entity, the permittee shall provide the legal business name of the applicant.

2. The permit number and expiration date.

3. The permittee's address of record and premises address.

4. An attestation that all information provided to the city in the original application for a permit is accurate and current.

C. In the event the permit is not renewed prior to the expiration date, the permittee shall not engage in commercial cannabis activity until the permit is renewed.

Page 10 of 14 ends

E. A permit that has expired and has not been renewed within thirty calendar days after expiration shall be deemed to have been forfeited.

F. Review of any decision by the city manager to deny a request to renew a permit shall be pursuant to section

5.35.130.
(Ord. No. 1524, § 2, 7-10-18)

5.35.090 Premises.

B. A permittee whose premises is to be materially or substantially changed, modified, or altered is responsible for filing a request for premises modification with the city manager. The request shall be in writing and include:

1. A new premises diagram that conforms to the requirements set forth in section 5006 of title 16 of the California Code of Regulations.

2. A fee in an amount to be established by resolution of the city council.

3. Any additional documentation or information that the city manager deems necessary to consider the request.

C. A permittee shall not sublet the premises.
(Ord. No. 1524, § 2, 7-10-18)

5.35.100 Notification of criminal, civil or administrative action.

Page 11 of 14 ends

5.35.110 Notification of theft, loss, or criminal activity.

A. A permittee shall notify the city manager and the chief of police within twenty-four hours of discovery of any of the following situations:

1. The permittee discovers a significant discrepancy in its inventory.

3. The permittee becomes aware of, or has reason to suspect, any breach of security.

5.35.120 Suspending, modifying, or revoking permits.

A. The city manager may suspend, modify, further condition or revoke any permit pursuant to the provisions of this chapter for any of the following reasons:

1. The permittee, or any of its owners, has violated a term or condition of its permit issued pursuant to this chapter or a term or condition of a license issued by a licensing authority.

2. The permittee, or any of its owners, has violated this Code or the laws or regulations of the state.

4. The permittee failed to pay a fine or administrative penalty when due.

5. The permittee failed to take reasonable steps, as defined in section 5808 of title 16 of the California Code of Regulations, as the same may be amended from time to time, to correct nuisance conditions on the premises, including the immediately adjacent area that is owned, leased, or occupied by the permittee, within a reasonable time after receipt of notice to abate the condition.

NOTICE OF SUSPENSION

THE CANNABIS REGULATORY PERMIT ISSUED FOR THIS PREMISES HAS BEEN SUSPENDED FOR VIOLATION OF

THE BANNING MUNICIPAL CODE
C. A permittee whose permit has been revoked shall conspicuously display a notice on the exterior of the premises indicating that the permit has been revoked. The notice shall remain continuously on the premises 1262
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for at least fifteen calendar days. The notice shall be in at least twenty-four point type and provide as follows:

NOTICE OF REVOCATION

THE CANNABIS REGULATORY PERMIT ISSUED FOR THIS PREMISES HAS BEEN REVOKED FOR VIOLATION OF

THE BANNING MUNICIPAL CODE
D. Action taken by the city manager with respect to the suspension, modification, or revocation of a cannabis regulatory permit shall be final and conclusive. Any permit aggrieved by the suspension, modification or revocation of a cannabis regulatory permit may obtain review of such decision by appeal to the city council pursuant to section 5.35.130.
(Ord. No. 1524, § 2, 7-10-18)

5.35.130 Initiation of discipline and appeals.

A. The city manager may initiate suspension or revocation proceedings or impose additional conditions on a permittee by sending written notice to the permittee of the disciplinary action and grounds for the action by certified mail return receipt requested, to the permittee's business address, as set forth in the permit. The notice shall inform the permittee of its right to appeal the determination of the city manager by sending written notice of appeal and the grounds for such appeal to the city manager no later than ten calendar days after the date in which the notice of suspension, revocation or intention to impose additional conditions was mailed. Failure to timely appeal shall result in a forfeiture of the right of appeal, and the determination of the city manager shall be final.

Hearsay evidence may be received; however, in no event shall a decision be based solely on hearsay evidence.

Page 13 of 14 ends

(Ord. No. 1524, § 2, 7-10-18)

5.35.140 Non-disciplinary modification of cannabis regulatory permit.

A. The city manager may eliminate, modify or add to any condition imposed on a permittee when he or she deems such action reasonably necessary to protect the health, safety or welfare of the public or to otherwise secure compliance with the requirements set forth in this Code. The action taken on the permit and the grounds for such action shall be made in writing and sent by certified mail return receipt requested to the permittee's business address, as set forth in the permit.

B. The action by the city manager taken pursuant to this section may be made in conjunction with disciplinary action, in lieu of disciplinary action, or independent of disciplinary action.

C. Any person aggrieved by the action of the city manager may appeal the decision pursuant to the procedures set forth in Section 5.35.130.
(Ord. No. 1524, § 2, 7-10-18)

5.35.150 Notification of changes.

A. A permittee shall notify the city manager in writing within ten calendar days of any change to any item listed in the application. The notification shall be signed by an owner.

5.35.160 Remedies and public nuisance.

B. The city attorney is authorized to institute administrative action pursuant to chapters 1.20 through 1.28 of this Code and to institute civil or criminal action in the Riverside County Superior Court in order to enforce the provisions of this chapter and those provisions set forth in title 17 of this Code relating to land use for cannabis businesses.

C. A violation of any section within this chapter is a public nuisance. (Ord. No. 1524, § 2, 7-10-18)
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5.35.170 Joint and several liability.

All permittees and owners shall be jointly and severally liable for violation of any provision set forth in this chapter.
(Ord. No. 1524, § 2, 7-10-18)
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17.08.020 Permitted, conditional and prohibited uses.

The following list represents those uses in the residential districts which are Permitted (P), subject to a Conditional Use Permit (C) or Prohibited (X):

Table 17.08.020
Permitted, Conditional and Prohibited Residential Uses
Zone R/A R/A/H RR RR/H VLDR LDR MDR HDR* MHP
Residential Uses
Accessory Dwelling
Unit

P P P P P P P P X
Cannabis Commercial
Indoor Cultivation

X X X X X X X X X
Cannabis
Manufacturing Level 1

X X X X X X X X X
Cannabis Distribution
Facility

X X X X X X X X X
Cannabis
Microbusiness

X X X X X X X X X
Cannabis Personal
Cultivation6

P P P P P P P P P
Cannabis Retailer X X X X X X X X X
Cannabis Testing
Laboratory

X X X X X X X X X
Other Cannabis Uses X X X X X X X X X
Commercial
cargo/storage
container

P P P P P X X X X
Community Gardens P P P P P P P P P
Condominiums and
Townhomes

X X X X C C P P X
Congregate Care
Facility

X X X X X P P P X
Day Care Center P P X X X C C C C
Day Care Home, Small1 P P P P P P P P P
Day Care Home, Large2 C C C C C C C C C
Dormitory X X X X X C C C X
Homeless Shelter X X X X X X X C C
Mobile Home Parks or
Subdivisions

X X X X X X C C P
Multi-Family Dwelling X X X X X C P P X
Planned Unit
Development

X X X P P P P P X
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Residential Care
Facility, Large

X X X X X X C C X
Residential Care
Facility, Small, Licensed

P P P P P P P P P
Residential Care
Facility, Small,
Unlicensed

X X X X X X C C X
Second Dwelling Unit P P P P P P P P X
Single Family Dwelling P P P P P P P C X
Single Room
Occupancy

X X X X X X X C X
Equestrian Uses
Stables, Private P P P P P X X X X
Stables, Commercial P C P C C X X X X
Tack and Feed Stores C C C X X X X X X
Veterinary Offices and
Hospitals

C X C X C X X X X
Agricultural Uses
Grazing of Animals P P P P P P X X X
Kennels and Catteries,
commercial

C C C C C C X X X
Locally Adaptive
Farming
P5 P5 C C X X X X X
Factory Farms with
Genetic Monocultures

X X X X X X X X X
Ranching P P C C X X X X X
Recreational Uses
Clubhouses C X C X C C C C C
Golf Courses and
Related Facilities

C X C X C C C C C
Swimming Pool/Sports
Club

X X X X C C C C C
Sports Courts and
Fields

C X C X C C C C X
Accessory Uses
Telecommunications
Antennae

C X X X X X X X X
Garages (for storage of
vehicles only, in excess
to that required under
Chapter 17.28 (Parking
Regulations)

C X C X C C X X X
Other Uses
Bed and Breakfast C C C C C C C X X
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Boarding House X X X X X X X X X
Cemeteries C X C X C C X X X
Churches C X C X C C C C C
Utility Facilities C C C C C C C C C
Private Schools C C C C C C C C C
Neighborhood
Oriented Retail Stores3

X X X X X X C X X
Temporary Uses4 T T T T T T T T T
Housing developments in the VHDR district are permitted at a minimum density of twenty dwelling units per acre by-right when at least fifty percent of the units are reserved for lower income households. 1 Small family day care homes are permitted by right in single-family residences located in any residential zone.

Small family day care homes are not permitted in multiple-family residences. 2 Large family day care homes are conditionally permitted in single-family residences located in any residential zone. Large family day care homes are not permitted in multiple-family residences. 3 Neighborhood-oriented retail stores, as defined in the General Plan, consist of "corner store" type development such as convenience stores, grocery or green grocer, video rental, drug stores, sit down restaurants, coffee shops or coffee bars or similar uses, less than five thousand square feet in total square footage. 4 Temporary uses require temporary use permit. See Chapter 17.108 for provisions. 5 Agricultural employee housing allowed with up to twelve units or thirty-six persons, and/or up to six workers as a single-family use.
6 Cannabis Personal Cultivation must comply with the provisions of Chapter 5.34. (Zoning Ord. dated 1/31/06, § 9102.02; Ord. No. 1392, § 2.) (Ord. No. 1466, § 3(4), (6), 8-13-13; Ord. No. 1467, §§ 4, 6, 8-13-13; Ord. No. 1482, § 3(2), 1-13-15; Ord. No. 1496, § 3(2), 5-10-16; Ord. No. 1507, § 3.2.2, 3-14-17; Ord. No. 1509, § 3, 4-11-17; Ord. No. 1510, § 3(2), 9-11-17; Ord.

No. 1512, § 6, 10-10-17; Ord. No. 1523, § 3B, 7-10-18; Ord. No. 1531, § 3B, 11-13-18; Ord. No. 1552 , § 5, 1-28-20; Ord. No. 1577 , § 13, 9-28-21; Ord. No. 1583 , §§ 3,4, 10-11-22) 1268
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17.12.020 Permitted, conditional and prohibited uses.

The following list represents those uses in the commercial and industrial districts which are Permitted (P), subject to a Conditional Use Permit (C) or Prohibited (X).

Table 17.12.020
Permitted, Conditional and Prohibited Commercial and Industrial Uses Zone DC GC HSC PO I AI BP IMR
Resource and Open Space Uses
Plant nurseries, with on-site sales X P X X X X C C
Plant nurseries, without on-site sales X C X X X X X C
Surface mining1 X X X X C X X C
Commercial cargo/storage containers C C C C P P P P
Community Gardens P P P P P P P P
Recreation, Education and Public
Assembly
Adult entertainment X X X X C X X X
Adult day care facilities X C C C X X C X
Automobile race track X X X X C C X X
Billiard parlors/pool halls C C C X X C C X
Churches C C C C C X C C
Community centers P P C C X X X X
Convention facilities P P P X X P X X
Day care centers C C C C X X C X
Health/fitness facilities C P P P X X C X
Indoor recreation centers C P P X X C X X
Libraries P P P P X P X X
Membership organization facilities X X X C C P C X
Museums P P P P X P X X
Outdoor commercial recreation P P P C X C C X
Public parks and playgrounds P P P P X P P X
Recreational vehicle (RV) parks X X C X X X X X
Recreational vehicle (RV) storage X X X X C X C X
Schools X X X C X P X X
Sport facilities and outdoor public
assembly

C C C C X C C X
Studios for dance, art, music,
photography, etc.

P P P P C X C X
Theatres and meeting halls C C C C C X C C
Retail Uses
Accessory retail uses P P P P P P P X
Alcoholic beverage sales, on- or off-site C C C C X X X X Antique stores P P P X X X P X
Art galleries P P C C X P P X
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Auto, mobile home, and motor vehicle
sales, with or without part sales, new
and/or used3

X P P X P P C X
Auto, mobile home, and motor vehicle
part sales3

C P P X P P C X
Bakeries, retail P P P P X X P X
Bars and drinking establishments C C C X X C X X
Building material stores X P P X X X P X
Certified farmers' markets P P P X X X X X
Convenience stores C P P C X C X X
Convenience stores, no liquor sales P P P X X X P X
Department stores P P P X X X P X
Drive-in/drive-through sales X P P C X X C X
Drug stores P P P C X X C X
Electronic Message Center C
Factory outlet centers X P P X X X C X
Farm and ranch supply stores X P P X X X X X
Furniture, furnishings, home equipment
stores

P P P X X X P X
Gift shops P P P P X P P X
Grocery stores, retail butchers and green
grocers

P P P X X X C X
Hardware/lumber stores C P P X P X P X
Liquor stores (off-site consumption) X C C C X X X X
Outdoor retail merchandise display and
activities

P C C C X X C X
Outdoor retail sales, temporary T T T T X T T X
Pawn shops X C C X X X C X
Pet stores and grooming P P P X X X P X
Restaurants, no beer, wine or liquor sales P P P P C C P C Restaurants, serving beer, wine or liquor P P P P C C P C Restaurants, drive-in, take-out, fast food C P P C X X C X Retail stores, general merchandise P P P X X X P X
Second hand/thrift stores X C C X X X X X
Shopping centers, 15,000 square feet or
more

C P P X X X C X
Video rental stores P P P X X X P X
Warehouse or club stores (i.e., "Big box
stores")

X P P P X X P X
Services
Automatic teller machine (ATM), not at a
bank

P P P P X P P X
Banks and financial
establishments/services

P P P P X X P X
Barber shops and beauty shops P P P X X X P X
Bed and breakfast establishments P C C X X X X X
Boarding house X X C X X X X X
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Business support/secretarial services P P P P X P P X
Car wash X P P X X X C X
Columbarium's and mortuaries X C C X X X C X
Construction storage (indoor and/or
outdoor)

X X X X P X C C
Drive-in and drive-through services X P P C X X C X
Dry cleaning, retail C P P C X X P X
Equipment rental yards X X C X P C C X
Fortune-Telling X C C C C C C X
Government offices P C C P X P P X
Hookah and Smoking Lounges X C C C C C C X
Hotels and motels P P P X X X C X
Laundry, coin operated C P P X X X X X
Massage Establishment P P P P X P P X
Medical services, clinics and labs C C C P X X C X
Mobile Vending T T T T T T T T
Professional offices P P P P X P P X
Public parking P P P P P P P X
Public utility and safety facilities P P P P P P P P
Real estate offices P P P P X X P X
Repair and maintenance of consumer
products

X P P C X X P X
Repair and maintenance of motor
vehicles, including auto body

X C P X P P P X
Research and development facilities X X X C C C P X
Storage, accessory, including self-storage X X X X C X C X Tattoo and Body Piercing Studios C C C C C C X X
Vehicle fueling/service stations X P P P X P P X
Veterinary clinics, animal hospitals,
grooming

C P P P X X P X
Manufacturing and Processing Uses
Assembly from prefabricated parts or
products
X C3 X X P P P X
Auto wrecking/parts salvaging X X X X C X X X
Bakeries, wholesale X X X X P X P X
Breweries and distilleries C C C X C X C X
Breweries and distilleries, ancillary to a
bar or restaurant

C C C X X P C X
Cabinet shops, carpentry, furniture
manufacturing and assembly

X X X X P X P X
Ceramics manufacturing and assembly X X X X P X P X
Cleaning and dyeing plants X X X X P X X X
Contractor's storage yards X X X X P C C P
Creameries and dairies X X X X C X X X
Distribution X X X X P P P X
Food products manufacturing X X X X P X C X
Furniture and fixtures X X X X P X P X
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Garment and shoe manufacturing X X X X P X P X
Ice and cold storage X X X X P P P X
Laundries and dry cleaning plants C C C C P X C X
Lumber yards X X X X P X C X
Machining, welding and blacksmithing X X X X P P C C
Manufacturing facilities, light X X X X P C P X
Manufacturing facilities, heavy X X X X P C X X
Metal plating shops X X X X C X X X
Mixed-use office/industrial X X X X P C P C
Mixed-use industrial/commercial X X X X P X C X
Packing plant X X X X P X P X
Printing/publishing C C C C P X P X
Recycling facilities X X X X P X C X
Recycling—Reverse vending machines P P P X P X P X
Sheet metal shops X X X X P P C C
Stone and granite storage and sales X X X X P X C P
Storage yard X X X X P C C P
Tire recapping, retreading and storage X X X X C C C X
Truck (commercial) repair, towing,
storage and service

X X X X P P C C
Trucking yard or terminal X X X X C C C X
Warehousing X X X X P P P C
Wholesaling X X X X P C P X
Residential Uses
Caretaker/watchperson's dwelling C X X X C C C C
Guest house X X X X X X X X
Home occupations P X X X X X X X
Mixed-use, residential/commercial6 P P C C X C C X
Residential accessory uses and structures C X X X X X X X Residential care facility, large X X C X X X X X
Residential care facility, small, licensed X X C X X X X X Residential care facility, small, unlicensed X X C X X X X X Zone DC GC HSC PO I AI BP IMR
Congregate care housing C X X C X X C X
Single room occupancy facility C X C X X X X X
Single-family dwellings, existing P X X X X X X X
Single-family dwellings, new X X X X X X X X
Accessory Dwelling Unit X X X X X X X X
Other Uses
Commercial or telecommunications
antennae

X C C C C C C C
Public utility facilities X P P P P P P P
Emergency shelters X X X X X P X X
Cannabis Commercial Indoor Cultivation9 X X X X C X C X Cannabis Personal Cultivation7 X X X X X X X X
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Cannabis Manufacturing Level 19 X X X X C X X X
Cannabis Retailer X X C8 X X X X X
Cannabis Testing Laboratory9 X X X X C X X X
Cannabis Distribution Facility10 X X X X C X X X
Cannabis Microbusiness11 X X X X C X C X
Other Cannabis Uses X X X X X X X X
1 Surface mining permit required. See Chapter 17.100.
2 Reserved.
3 Refer to Section 17.12.050(B) for conditional use permit requirements. 4 A government office shall include administrative functions as well as those activities that will involve on-site customer patronage. A government office that is only administrative in nature, involving no customer patronage, can be considered a professional office.
5 When undertaken in conjunction with on-site retail as a primary use. 6 Existing mixed residential/commercial uses that are legal and nonconforming with respect to Conditional Use Permits may be reoccupied.
7 Cannabis Personal Cultivation is prohibited except in a house, an apartment unit, a mobile home, or other similar dwelling that is a legal non-conforming use and that otherwise complies with Chapter 5.34 of this Code. 8 Cannabis Retailers shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.54. 9 Cannabis Commercial Indoor Cultivation, Cannabis Manufacturing Level 1, and Cannabis Testing Laboratory uses shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.53. 10 A Cannabis Distribution Facility shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.53. 11 A Cannabis Microbusiness shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.53. (Zoning Ord. dated 1/31/06, § 9103.02; Ord. No. 1355, § 3 (part); Ord. No. 1387, § 3; Ord. No. 1392, § 3; Ord. No. 1426, § 5, 9-14-10; Ord. No. 1434, §§ 4, 14, 15, 2-8-11; Ord. No. 1448, § 7, 5-8-12; Ord. No. 1467, §§ 4, 6, 8-13-13; Ord. No. 1469, §§ 3, 8, 10-8-13; Ord. No. 1476, § 3, 1-28-14; Ord. No. 1488, § 3.2.a., 6-9-15; Ord. No. 1496, § 3(2), 5-10-16; Ord. No. 1507, § 3.2.3, 3-14-17; Ord. No. 1509, §, 4-11-17; Ord. No. 1510, § 3(2), 9-11-17; Ord. No. 1512, § 6, 10-10-17; Ord. No. 1530, §§ 4B, 4C, 9-25-18; Ord. No. 1535, § 4B, 11-13-18; Ord. No. 1523, § 3C, 7-10-18; Ord.

No. 1531, § 3C, 11-13-18; Ord. No. 1547, § 3(Exh. A), 6-25-19; Ord. No. 1552 , § 6—9, 1-28-20; Ord. No. 1565 , §§ 9—11, 7-14-20; Ord. No. 1577 , § 14, 9-28-21)
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Title 17 - ZONING
Division IV. - ADMINISTRATION
Chapter 17.53 CANNABIS CONDITIONAL USE PERMITS
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Chapter 17.53 CANNABIS CONDITIONAL USE PERMITS

17.53.010 Definitions.

For the purpose of this Chapter, the following words and phrases shall be defined as follows:

A. "Applicant" means an owner applying for a cannabis conditional use permit pursuant to this Chapter.

B. "Bureau" means the Bureau of Cannabis Control within the California Department of Consumer Affairs.

C. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.

D. "Cannabis business" means a cultivation facility, a cannabis manufacturing level 1 facility, testing laboratory facility, cannabis distribution facility, or cannabis microbusiness.

E. "Cannabis distribution" means the procurement, sale and transport of cannabis goods between State licensed cannabis retailers, manufacturers, cultivators and testing laboratories.

F. "Cannabis distribution facility" means a facility that transports cannabis goods between State licensed cannabis retailers, manufacturers, cultivators and testing laboratories.

G. "Cannabis goods" means cannabis, including dried flower, and cannabis products.

H. "Cannabis microbusiness" means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) a cannabis retailer (as defined in Section 17.54.010), (2) a manufacturing facility, (3) a cultivation facility with canopy space of less than 10,000 square feet, and (4) a cannabis distribution facility. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses.

I. "Cannabis products" has the same meaning as in Section 11018.1 of the Health and Safety Code.

J. "Canopy space" means the designated areas at a cultivation facility that will contain mature plants at any point in time, as follows:

1. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries;

2. Canopy may be noncontiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary that includes, but is not limited to, interior walls, and shelves; and

3. If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation.
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K. "City" means the City of Banning.

L. "City Manager" means the City Manager or his/her designee.

M. "Convicted" or "conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted.

N. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or engaging in any other cannabis activity that requires a State license issued by a licensing authority.

O. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

P. "Cultivation facility" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

Q. "Extraction" means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.

R. "Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

S. "Indoors" means within a fully enclosed and secure structure.

T. "Infusion" means a process by which cannabis, cannabinoids, or cannabis concentrates, are directly incorporated into a product formulation to produce a cannabis product.

U. "Licensing authority" means the Bureau of Cannabis Control; CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA); the California Department of Public Health's Manufactured Cannabis Safety Branch; or any other State cannabis licensing authority.

V. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.

W. "Manufacturing facility" means a location that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.

X. "MAUCRSA" means the Medicinal and Adult-Use Cannabis Regulation and Safety Act.

Y. "Outdoors" means any area or location not specifically meeting the definition of indoors.

Z. "Owner" means any of the following:

1. A person with an aggregate ownership interest of 20 percent or more in the person applying for a permit or a permittee, 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.

Page 3 of 15 ends

b. A member of a limited liability company of a cannabis business that is organized as a limited liability company.
c. An officer or director of a cannabis business that is organized as a corporation.

AA. "Nonvolatile solvent" means any solvent used in the extraction process that is not a volatile solvent.

For purposes of this Chapter only, nonvolatile solvents include carbon dioxide and ethanol.

BB. "Package" means any container or receptacle used for holding cannabis or cannabis products.

CC. "Permit" means a cannabis conditional use permit issued pursuant to this Chapter.

DD. "Permittee" means any person holding a cannabis conditional use permit under this Chapter.

EE. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

FF. "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant where the cannabis business will be conducted.

GG. "Significant discrepancy" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a permittee's inventory.

HH. "Testing laboratory" means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and that is both of the following:

1. Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State.

2. Licensed by the Bureau.

II. "Volatile solvent" means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1542, § 3, 4-23-19; Ord. No. 1565 , § 12, 7-14-20; Ord. No. 1577 , § 19, 9- 28-21)

17.53.020 Commercial cannabis conditional use permit required.

A. Except as expressly authorized pursuant to this Title (Title 17, Zoning), all commercial cannabis activity is prohibited in the City.

B. Prior to initiating operations and as a continuing requisite to operating a cannabis business, the person(s) wishing to operate a cannabis business shall:

1. Obtain and maintain a validly issued cannabis conditional use permit approved by the City Council after recommendation by the Planning Commission, and comply with all conditions of approval.

2. Obtain and maintain a State license to engage in the specific cannabis business being operated on the premises.

3. Obtain and maintain a cannabis regulatory permit as required by Chapter 5.35 of this Code.

4. Obtain and maintain a business license or any other license or permit required by this Code. 1276
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(Ord. No. 1523, § 3G, 7-10-18)

17.53.030 Commercial cannabis conditional use permit—Application fees and terms.

A. No cannabis conditional use permit application shall be processed unless the applicant pays the application fee deposit in the amount to be established by resolution of the City Council. No cannabis conditional use permit shall be issued unless the applicant pays the nonrefundable permit fee in the amounts to be established by resolution of the City Council.

B. No cannabis conditional use permit shall be issued if the applicant has an ownership or other direct financial interest in any other commercial cannabis business operating in the City. (Ord. No. 1523, § 3G, 7-10-18)

17.53.040 Cannabis conditional use permit application requirements.

An applicant shall file the following information with the City at the time of application for a cannabis conditional use permit:

A. A completed cannabis conditional use permit application, together with the application fee in an amount to be established by resolution of the City Council.

B. Proof of a cannabis regulatory permit jointly approved by the City Manager and Chief of Police. The owner identified on the cannabis conditional use permit application shall be same owner as listed on the cannabis regulatory permit issued pursuant to Chapter 5.35.

C. An operating plan for the proposed cannabis business that includes:

1. A general description of the types of products and/or services to be provided by the cannabis business;

2. A site plan, drawn to scale and professionally prepared by a licensed civil engineer or architect, of the parcel of property on which the proposed cannabis business will be located. The site plan shall include the outline of all structures, driveways, parking and landscape areas, and boundaries of the parcel.

3. A floor plan, drawn to scale and professionally prepared by a licensed civil engineer or architect, designating all interior dimensions of the premises, the proposed use of all spaces, identification of limited access areas, areas of ingress and egress, and all security camera locations.

4. An evaluation of accessibility by the physically disabled to and within the building and identification of any planned accessibility improvements to comply with all state and federal disability access laws, including, but not limited to, Title 24 of the California Code of Regulations and the Americans with Disabilities Act. The evaluation must be professionally prepared by a licensed civil engineer or architect.

5. A business plan describing how the cannabis business will operate in accordance with the Banning Municipal Code, state law, and other applicable regulations. The business plan must include plans for cash handling and transportation of cannabis and cannabis products to and from the premises.

6. Water source information.

7. Projected energy demand and energy efficiency plan that addresses illumination, heating, cooling, and ventilation. The applicant shall also provide a letter from the Banning Municipal Electric Company stating that the Banning Municipal Electric Company can meet the cannabis business' energy demand.

8. A list of all owners, employees, independent contractors, and volunteers. 1277
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D. Neighborhood Context Map. An accurate straight-line drawing depicting the boundaries of the premises, the boundaries of all other properties within 600 feet of the premises, and the uses of those properties, specifically including, but not limited to, any use identified in Business and Professions Code section 26054(b) and any park located within 600 feet of the premises. The distances specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection. The map must be professionally prepared by a licensed civil engineer or architect.

E. Security plan. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the premises. The security plan must be prepared by a qualified professional.

F. Lighting Plan. A lighting plan showing existing and proposed exterior and interior lighting levels that would be the minimum necessary to provide adequate security lighting for the use.

G. The name, phone number, and email address of an on-site community relations representative or staff member or other representative to whom the City can provide notice if there are operating problems associated with the cannabis business or refer members of the public who may have complaints or concerns regarding the cannabis business. This information shall be available to neighboring businesses and residences located within one hundred feet of the cannabis business, as measured in a straight line without regard to intervening structures.
(Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1542, § 4, 4-23-19)

17.53.050 Additional application requirements.

A. Each cannabis business shall obtain a separate conditional use permit.

B. The applicant shall submit proof that the applicant is, or will be, entitled to possession of the premises for which application is made.

C. The applicant shall submit proof of the nature of the cannabis business's organizational status, such as articles of incorporation, by-laws, partnership agreements, and other documentation which may be required by the City.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.060 Procedures and findings for approval of cannabis conditional use permit.

A. A cannabis conditional use permit shall be processed in accordance with the procedures set forth in Chapter

17.52, Conditional Use Permits, with the following exceptions:

1. Any provision that requires the approval by the Planning Commission with appeal to the City Council shall be replaced with the requirement that the Planning Commission make a recommendation on the cannabis conditional use permit and that the approval of such permit shall be made by the City Council.

2. Sections 17.52.020 (Application procedures) and 17.52.080 (Modifications) shall not apply.

3. Any procedures pertaining to noticing and the setting of a public hearing before the Planning Commission shall also apply to the City Council.

B. An applicant for a cannabis conditional use permit shall comply with the California Environmental Quality Act ("CEQA"). No cannabis conditional use permit shall be granted until the requisite CEQA review has been conducted.
(Ord. No. 1523, § 3G, 7-10-18)
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17.53.070 Approval of cannabis conditional use permit with conditions.

A. Upon approval of a cannabis conditional use permit, the City Council may impose conditions in excess of the requirements set forth in this Chapter including, but not limited to, conditions relating to hours of operation, the operation of any cannabis business, restrictions relating to the deployment or use of the types of equipment used on the premises, and set back requirements.

B. The City may grant a cannabis conditional use permit prior to the applicant having obtained a state license from a licensing authority; however, no approved cannabis business may receive a certificate of occupancy nor operate in the City prior to possessing the requisite state and local licenses and permits.

C. All cannabis businesses must pay all applicable taxes pursuant to all federal, state, and local laws.

D. Cannabis businesses shall comply with all cannabis state laws and regulations. (Ord. No. 1523, § 3G, 7-10-18)

17.53.080 Premises.

A. All cannabis businesses shall be conducted only in the interior of enclosed structures, facilities and buildings and all operations including the storage or cultivation of cannabis plants at any stage of growth shall not be visible from the exterior of any structure, facility, or building. There shall be no outdoor storage of any kind associated with the cannabis business.

B. No cannabis business shall be located within a 600-foot radius of any park, day care center, or youth center, or public or private school providing instruction in kindergarten or any of grades 1-12, that is in existence at the time the cannabis conditional use permit is issued. The 600-foot distance requirement does not include any private school in which education is primarily conducted in a private home or a family day care home.

The distances specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection. Outdoor storage on the premises shall be prohibited.

C. Loading areas and loading docks shall be located on the side or rear of the lot, and shall be screened by solid, decorative walls.

D. Hours of operation shall be as approved with the Conditional Use Permit.

E. Cannabis businesses shall only be conducted on properties that are fully compliant with all Banning Municipal Code requirements, including required development standards such as parking, landscaping, etc.

F. Cannabis businesses located within the same building or on the same property shall each have a validly issued cannabis conditional use permit from the City.

G. All entrances into the premises shall be locked at all times with entry controlled by the permittee's managers and staff.

H. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed on the premises.

I. All commercial cannabis activity in any premises shall be separated from the main entrance and lobby, and cannabis and cannabis products shall be secured by a lock accessible only to managers and staff of the permittee.
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J. A permittee shall not, without an approved amendment to the cannabis conditional use permit, make a physical change, alteration, or modification of the premises that alters the premises or the use of the premises from the premises diagram filed with the permit application. Material or substantial changes, alterations or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway or passage alters or changes limited-access areas within the premises.

K. A permittee shall not sublet the premises.

L. Inspections. The City shall have the right to enter all cannabis businesses from time to time upon 24-hour's notice 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 cannabis business is being operated or maintained in compliance with this Code, state law, and other applicable laws and regulations. Any cannabis business licensed pursuant to this Chapter may be required to demonstrate, upon demand by the City that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation.
(Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1542, § 5, 4-23-19)

17.53.090 Personnel and visitors.

A. All agents, officers, or other persons acting for or employed by a cannabis business shall display a laminated or plastic-coated identification badge issued by the cannabis business at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the cannabis business's "doing business as" name and city business license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height.

B. Employees and Volunteers Age Requirement. A cannabis business shall not employ an individual less than twenty-one (21) years of age, nor may a cannabis business permit an individual less than twenty-one (21) years of age to volunteer at or be within the cannabis business.

C. Visitors. Cannabis businesses shall not be open to the general public. Any individual permitted to enter a limited access area who is not a person that has undergone a background check in accordance with Chapter

5.35 of this Code and is not listed on the premises' worker list shall be considered a visitor. Notwithstanding the foregoing, state and local employees, or their official designees, shall not be considered a visitor provided the individual is on the licensed premises for purposes of official government business.

1. Visitors Identification and Record Requirements. Prior to permitting a visitor into a limited access area, a cannabis business must check the individual's valid government issued identification. The visitor shall be required to sign the cannabis business's visitor log, which must include the individual's name, date of entry, and purpose for entry.

2. Visitors Must Be at Least Twenty-One (21) Years of Age. A cannabis business may not permit a visitor who is less than twenty-one (21) years of age to enter a limited access area.

3. Visitors Prohibited Conduct. A visitor shall not be permitted to engage in any commercial cannabis activity while on the premises.

4. A manager shall be on the site at all times that any other person, except a security guard, is on the site. (Ord. No. 1523, § 3G, 7-10-18)
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17.53.100 Security.

The premises of a cannabis business must comply with all of the following security requirements:

A. Main Entrance and Lobby. The premises shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas.

B. Transport Area. The premises shall have an area designed for the secure transfer of cannabis from the cultivation, manufacturing, or testing laboratory area to a vehicle for transportation.

C. Commercial-Grade Locks. All points of ingress and egress to a premises shall ensure the use of commercial-grade, nonresidential door locks or window locks.

D. A permittee that is engaged in cultivation, manufacture, or distribution or is a cannabis microbusiness shall hire or contract for 24-hour security personnel to provide security services for the premises. All security personnel hired or contracted for by the cannabis business shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

E. Video Surveillance. The premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection.

1. Each premises shall have a digital audio/video surveillance system with a minimum camera resolution of 1280 x 720 pixels.

2. The surveillance-system storage device or the cameras shall be transmission control protocol (TCP) capable of being accessed through the internet.

3. The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance and shall capture audio such that all sounds are intelligible.

4. Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection 5 below.

5. Areas that shall be recorded on the audio/video surveillance system include the following:
a. Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the premises; b. Limited-access areas;
c. Security rooms;
d. Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; e. Entrances and exits to the premises;
f. Waste containers.

6. Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS).

7. The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering, fire, or theft.

8. Surveillance recordings shall be kept for a minimum of 90 days. 1281
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9. Surveillance recordings shall be monitored by a third party surveillance company.

10. Surveillance recordings are subject to inspection by the City, and shall be kept in a manner that allows the City to view and obtain copies of the recordings at the licensed premises upon not less than 24 hours advance notice. The permittee shall also send or otherwise provide copies of the recordings to the City upon reasonable notice by the City.

11. Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the United States National Institute Standards and Technology standards.

12. The video surveillance system shall be equipped with a failure notification system that provides notification to the permittee of any interruption or failure of the video surveillance system or video surveillance-system storage device.

13. The video surveillance system shall be equipped with a battery backup system capable of sustaining system operations in the case of an energy failure.

F. Alarm System. The premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows.

1. The alarm system shall be installed, maintained, monitored, and responded to by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

2. Upon request, a permittee shall make available to the City all information related to the alarm system.

G. Secure Storage of Product. Cannabis and cannabis products possessed by a cannabis business shall be kept and stored in a secured manner at all times. All areas where cannabis and/or cannabis products are kept shall be separated from the main entrance and lobby and secured by a lock accessible only to managers and staff.

H. Lighting. The business entrance(s) and all window areas of any cannabis business shall be illuminated during evening hours. The cannabis business shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, and shielding. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1577 , § 20, 9-28-21)

17.53.110 Track and trace.

All permittees shall comply with the track and trace system established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.120 Signage.

The premises must comply with the following signage requirements.

A. A cannabis business shall conspicuously post signs a minimum of eight (8) inches wide by ten (10) inches high in size that can readily be seen by all persons at the entrance that state: "This site is not open to the public" and "Retail sales of any goods and services is prohibited." 1282
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B. Business signage shall be limited to the name of the cannabis business only, shall be in compliance with the City's sign code, and shall contain no advertising of any companies, brands, products, goods, or services.

C. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve (12) inches wide and twelve (12) inches long, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera." D. Limited access areas shall be clearly identified by the posting of a sign which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one-half inch in height, which shall state, "Limited Access Area—Authorized Personnel Only." E. A sign shall be posted stating "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Banning Municipal Code."
F. A cannabis microbusiness that engages in in person retail sale of cannabis and cannabis products is not required to comply with Subsection A above.
(Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1577 , § 21, 9-28-21)

17.53.130 Cannabis waste management.

Cannabis waste disposal shall be conducted as follows:

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. Cannabis Waste. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with fifty percent non-medicinal cannabis waste. If necessary to protect the health and safety of individuals working on a licensed premises, a cannabis business may grind the stalk of a cannabis plant outside of its licensed premises provided all grinding activities occur within twenty feet of the licensed premises and cannot be seen from any public street.

C. Cannabis waste must be placed in either a trash enclosure or a trash receptacle for which either is locked with a commercial grade lock that is only accessible by the owner, manager, or employee of the cannabis business and any waste disposal company that provide waste disposal services for the cannabis business.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.140 General sanitary requirements.

A. A cannabis business must ensure that its premises is maintained in a sanitary manner and activities on its premises are conducted in a sanitary manner.

B. All facilities of a cannabis business must have adequate and sufficient access to bathrooms and handwashing facilities with running water at a suitable temperature.

C. All workers that engage in the preparation of edible cannabis products must comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food. 1283
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(Ord. No. 1523, § 3G, 7-10-18)

17.53.150 Odor control.

A. A cannabis business must have a ventilation and filtration system installed that shall prevent cannabis plant odors from exiting the interior of the structure and shall comply with all related Building Code requirements.

B. The ventilation and filtration system must be approved by the Building Official and installed prior to the commencement of cannabis cultivation activities.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.160 Cannabis indoor cultivation.

A. Cannabis Commercial Indoor Cultivation shall occur only indoors and shall contain not less than 10,000 square feet of canopy space nor exceed 22,000 square feet of canopy space per cannabis conditional use permit holder.

B. Seed to Sale Tracking Required. Until such a time that the state of California fully implements the California Cannabis Track and Trace System required by Section 26067 of the Business and Professions Code, a cannabis business must utilize seed to sale software, third-party software that tracks all sales, transfers, purchases, receipts, deliveries of cannabis and cannabis products. The software must be capable of producing electronic shipping manifests, tracking all cannabis inventory in possession of the cannabis business, promptly identifying a discrepancy in the stock, and tracking cannabis from the end purchaser back to its source in the event of a serious adverse event. Once implemented, all permittees shall comply with the California Cannabis Track and Trace System established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

C. Cultivators must comply with the Federal Worker Protection Standard (40 CFR 170).

D. The cultivation of cannabis must be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.

E. The cultivation of cannabis shall be conducted in a secure manner and shall not be visible from a public right of way. As used in this subsection, the term "visible" means capable of being seen without visual aid by an individual of normal acuity.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.170 Cannabis manufacturing level 1.

A. Edible Cannabis Products. Edible cannabis products shall be manufactured, packaged and labeled in compliance with MAUCRSA and any implementing regulations adopted by the State.

B. Edible cannabis products must be individually packaged and ready for sale by the manufacturer prior to sale or transfer to another cannabis business.

C. Any person that is involved in the manufacture of edible cannabis products must be a state certified food handler. The valid certificate number of such person must be on record at the manufacturing facility where that individual produces edible cannabis products.

D. Any facility used by a cannabis business to manufacture edible cannabis products shall be constructed, operated and inspected in compliance with all applicable building code and food safety requirements. 1284
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E. A cannabis business that manufactures 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.

F. Expiration Date. A cannabis business engaged in the manufacture of cannabis products, including an edible cannabis product, that is perishable shall assign an expiration date or use-by date, whichever is appropriate, to all perishable cannabis products. Once an expiration date or use-by date is assigned to cannabis products, it shall be unlawful for a person to alter that date or affix a new label with a later use-by or expiration date.

G. Extraction Requirements.

1. A manufacturer engaged in extraction may only engage in extraction using non-volatile solvents. The permittee shall not make any modifications to the method of extraction without first obtaining a modification of its permit.

2. Within the limitations set forth by state law, a cannabis business that extracts cannabis or produces cannabis concentrate using a solvent must use a professional grade, closed-loop extraction system capable of recovering the solvent used and must only use a solvent that is permissible under the MAUCRSA and any implementing regulations, and the manufacturer's state license.

H. Compliance with State Law. All packaging and labeling of cannabis and cannabis products by a cannabis business must, at a minimum meet the requirements set forth in the MAUCRSA and any implementing regulations, 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.

I. Tamper-Evident, Child-Resistant Packaging Required. Cannabis and cannabis products shall be labeled and placed in a resealable, tamper-evident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products.

J. Cannot Be Attractive to Children. Cannabis packaging and labeling shall not be designed to appeal to children, including, but not limited to, cartoon characters or similar images.

K. 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).

Notwithstanding the foregoing, during the period of time that the state permits untested cannabis and cannabis products to be sold to purchasers, all cannabis and cannabis products must have a label affixed to each package that clearly states "This product has not been tested as required by the Medicinal and Adult Use Cannabis Regulation and Safety Act" and must comply with any other labeling requirements imposed by the state.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.180 Cannabis testing laboratory.

A. Accreditation. A testing laboratory shall obtain and maintain ISO/IEC 17025 accreditation.

B. Operating Procedures. A testing laboratory shall adopt and adhere to standard operating procedures to ensure the reporting of accurate test results, including but not limited to equipment, calibration, and methodology standards, that are consistent with its ISO/IEC 17025 accreditation.

C. A testing laboratory shall obtain samples of cannabis and cannabis products for testing in accordance with a statistically valid method designed to ensure that a sample is representative of the whole. Sampling methods should have at least a 95% confidence rate.
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D. A testing laboratory shall destroy and safely dispose of the remains of any samples of cannabis or cannabis products tested upon completion of the analysis and the expiration of any retention time pursuant its standard operating procedures.

E. A testing laboratory shall maintain all testing results as a part of their respective business records. (Ord. No. 1523, § 3G, 7-10-18)

17.53.190 Cannabis distribution facility.

The transportation of cannabis or cannabis products shall only be conducted by persons holding a State license for cannabis distribution or employee of those persons.

Transportation safety standards, in addition to those imposed by the State of California, shall be approved by the Chief of Police including without limitations, the type of vehicles in which cannabis or cannabis product may be distributed, and minimum qualification for persons eligible to operate such vehicles.

A person holding a permit to operate a distribution facility shall observe and comply with all security manifest and notice requirements of Business and Professions Code Section 26070, as well as all State law requirements and Bureau regulations to operate a distribution facility. (Ord. No. 1565 , § 14, 7-14-20)

17.53.200 Cannabis microbusinesses.

A cannabis microbusiness shall comply with the following operational regulations as applicable:

A. Any cannabis cultivation shall occur only indoors and shall contain less than ten thousand square feet of canopy space.

B. The cannabis microbusiness shall comply with the California Cannabis Track and Trace System established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

C. A cannabis microbusiness that engages in cultivation must comply with the Federal Worker Protection Standard (40 CFR 170).

D. Any cannabis cultivation must be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.

E. Any cannabis cultivation shall be conducted in a secure manner and shall not be visible from a public right-of-way. As used in this subsection, the term "visible" means capable of being seen without visual aid by an individual of normal acuity.

F. A cannabis microbusiness that engages in the manufacture of cannabis products shall comply with Section 17.53.170.

G. A cannabis microbusiness that engages in the distribution of cannabis or cannabis products shall comply with Section 17.53.190.

H. A cannabis microbusiness that engages in the retail sale of cannabis must comply with Sections

17.54.090 and 17.54.170. In the event there is a conflict pertaining to any of the operational or development standards set forth in this Chapter and in the above-referenced Sections in this paragraph, the Community Development Director shall determine which standards apply. For example, if a cannabis microbusiness operates as both a retailer and cannabis cultivation facility and the 1286
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standards pertaining to a retailer and cannabis cultivation facility conflict, the Community Development Director shall determine which standards apply.

I. A conditional use permit shall only be issued to a cannabis microbusiness if it includes conditions that require (1) an application for a building permit for any construction or tenant improvements for the proposed use to be submitted within forty-five days of approval of the cannabis conditional use permit, (2) that any physical construction in reliance on the building permit be commenced within sixty days after the issuance of the building permit, and (3) that the cannabis microbusiness commence its operations within one hundred eighty days of the issuance of a building permit. If the applicant fails to satisfy the requirements for the forty-five-day, sixty-day, or one hundred eighty-day period, the cannabis conditional use permit shall automatically become null and void, unless the applicant files an application for an extension prior to the expiration of the applicable deadline and thereafter obtains that extension from the Community Development Director on the basis that the extension is warranted by special circumstances and that the applicant would be irreparably injured by the denial of an extension. In addition, if after commencement of construction, work is discontinued for a period of one hundred eighty days, the cannabis conditional use permit shall become null and void. (Ord. No. 1577 , § 23, 9-28-21)

17.53.210 Other provisions.

A. Cannabis Consumption on Premises. Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at a premises is prohibited. Premises as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas.

B. No person shall give, sell, distribute, or otherwise transfer any cannabis product in any manner not consistent with the approved cannabis conditional use permit or that violates local or state law.

C. Permittees must cooperate with City staff and Police Department personnel who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this Chapter.

D. Permittees must comply with all state laws and regulations that pertain to cannabis businesses including, but not limited to, the MAUCRSA, and any regulations promulgated by a licensing authority. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1565 , § 13, 7-14-20; Ord. No. 1577 , § 2, 9-28-21) Editor's note(s)—Ord. No. 1577 , § 22, adopted July 14, 2020, renumbered § 17.53.200 to be 17.53.210 to provide for the addition of a new § 17.53.200

17.53.220 Indemnification.

A. Indemnification. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any permit pursuant to this Chapter or the operation of any cannabis business approved by such permit pursuant to this Chapter. As a condition of approval of a permit granted under this Chapter, the applicant shall:

1. Indemnify and hold 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 cannabis business as provided in this chapter.

2. Maintain insurance in the amounts and of the types that are acceptable to the City pursuant to guidelines and policies set forth by the City.

3. Name the City as an additionally insured on all City required insurance policies. 1287
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4. Defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a permit or the operation of the cannabis business.

5. 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 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. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1565 , § 13, 7-14-20; Ord. No. 1577 , § 22, 9-28-21) Editor's note(s)—Ord. No. 1577 , § 22, adopted July 14, 2020, renumbered § 17.53.210 to be 17.53.220 to provide for the addition of a new § 17.53.200.
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Title 17 - ZONING
Division IV. - ADMINISTRATION
Chapter 17.54 CANNABIS RETAILER CONDITIONAL USE PERMITS Banning, California, Code of Ordinances Created: 2023-11-27 10:37:08 [EST] (Supp. No. 54, 9-23)

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Chapter 17.54 CANNABIS RETAILER CONDITIONAL USE PERMITS

17.54.010 Definitions.

For the purpose of this Chapter, the following words and phrases shall be defined as follows:

A. "Applicant" means an owner applying for a cannabis retailer conditional use permit pursuant to this Chapter.

B. "Bureau" means the Bureau of Cannabis Control within the California Department of Consumer Affairs.

D. "Cannabis business" means a cannabis retailer.

E. "Cannabis microbusiness" means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) cannabis retailer, (2) a manufacturing facility, (3) a cultivation facility with canopy space of less than ten thousand square feet, and (4) a cannabis distribution facility. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses. Any term use in this definition that is not defined herein shall have the same definition as set forth in Section 17.53.010.

F. "Cannabis products" has the same meaning as in Section 11018.1 of the Health and Safety Code.

G. "Cannabis retailer" means a cannabis business that engages in the retail sale and delivery of cannabis or cannabis products to customers.

H. "City" means the City of Banning.

I. "City Manager" means the City Manager or his/her designee.

J. "Convicted" or "Conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted.

K. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or engaging in any other cannabis activity that requires a State license issued by a licensing authority.

L. "Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations, as the same may be amended from time to time. 1289
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M. "Licensing authority" means the Bureau of Cannabis Control; CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA); the California Department of Public Health's Manufactured Cannabis Safety Branch; or any other State cannabis licensing authority.

N. "MAUCRSA" means the Medicinal and Adult-Use Cannabis Regulation and Safety Act.

O. "Owner" means any of the following:

1. A person with any ownership interest, 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.

P. "Permit" means a cannabis retailer conditional use permit issued pursuant to this Chapter.

Q. "Permittee" means any person holding a cannabis conditional use permit under this Chapter.

R. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

S. "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant where the cannabis business will be conducted.

T. "Significant discrepancy" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a permittee's inventory.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1577 , § 24, 9-28-21)

17.54.020 Cannabis retailer conditional use permit required.

A. Except as expressly authorized pursuant to this Title (Title 17, Zoning), all commercial cannabis activity is prohibited in the City. Notwithstanding the foregoing, the City shall not prohibit any commercial cannabis activity for which the City is preempted by State law from prohibiting. Consistent with Section 5416 of Title 16 of the California Code of Regulations, or any successor section, cannabis retail deliveries are permitted from lawful and permitted retailers in the City and from retailers located outside the City that are lawfully operating and permitted by the county or city in which they are located.

B. Prior to initiating operations and as a continuing requisite to operating a cannabis business, the person(s) wishing to operate a cannabis business shall:

1. Obtain and maintain a validly issued cannabis conditional use permit approved by the City Council after recommendation by the Planning Commission, and comply with all conditions of approval. 1290
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2. Obtain and maintain a State license to engage in the specific cannabis business being operated on the premises.

3. Obtain and maintain a cannabis retailer regulatory permit as required by Chapter 5.33 of this Code.

4. Obtain and maintain a business license or any other license or permit required by this Code.

C. A cannabis microbusiness with a retail component is not subject to the requirements of this Chapter 17.54 and is instead regulated pursuant to Chapter 17.53.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565 , § 15, 7-14-20; Ord. No. 1577 , § 25, 9-28-21)

17.54.030 Cannabis retailer conditional use permit—Application fees and terms.

A. No cannabis retailer conditional use permit application shall be processed unless the applicant pays the application fee deposit in the amount to be established by resolution of the City Council. No cannabis retailer conditional use permit shall be issued unless the applicant pays the nonrefundable permit fee in the amounts to be established by resolution of the City Council.

B. Each cannabis retailer premises shall require a separate cannabis retailer conditional use permit. Two cannabis retailer premises in the City may not operate under one cannabis retailer conditional use permit.

No holder of a cannabis retailer conditional use permit for one premises shall have an ownership interest in any other cannabis retailer lawfully or unlawfully operating in the City. Accordingly, no cannabis retailer conditional use permit shall be issued for an applicant, business entity, or person that has an ownership interest in any other cannabis retailer in the City and no cannabis retailer conditional use permit shall be issued if the applicant, owner or person with a direct financial interest in the cannabis business also has an ownership or other direct financial interest in any other commercial cannabis retailer that is operating in the City or that has obtained a conditional use permit.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1539, § 3, 1-8-19)

17.54.040 Cannabis retailer conditional use permit application requirements.

An applicant shall file the following information with the City at the time of application for a cannabis retailer conditional use permit:

A. A completed cannabis retailer conditional use permit application, together with the application fee in an amount to be established by resolution of the City Council.

B. Proof of a cannabis regulatory permit jointly approved by the City Manager and Chief of Police. The owner(s) identified on the cannabis retailer conditional use permit application shall be same owner(s) as listed on the cannabis retailer regulatory permit issued pursuant to Chapter 5.33.

C. An operating plan for the proposed cannabis business that includes:

1. A general description of the types of products and/or services to be sold or provided by the cannabis business.

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6. A list of all owners, employees, independent contractors, and volunteers.

E. Security Plan. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the premises. The security plan must be prepared by a qualified professional.

F. Lighting Plan. A lighting plan showing existing and proposed exterior and interior lighting levels that would be the minimum necessary to provide adequate security lighting for the use.

17.54.050 Additional application requirements.

A. Each cannabis business shall obtain a separate conditional use permit.

B. The applicant shall submit proof that the applicant is, or will be, entitled to possession of the premises for which application is made.

17.54.060 Procedures and findings for approval of cannabis retailer conditional use permit.

A. A cannabis retailer conditional use permit shall be processed in accordance with the procedures set forth in Chapter 17.52, Conditional Use Permits, with the following exceptions:

1. Any provision that requires the approval by the Planning Commission with appeal to the City Council shall be replaced with the requirement that the Planning Commission make a recommendation on the cannabis retailer conditional use permit and that the approval of such permit shall be made by the City Council.
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2. Sections 17.52.020 (Application Procedures), 17.52.070 (Expiration), and 17.52.080 (Modifications) shall not apply.

3. Any procedures pertaining to noticing and the setting of a public hearing before the Planning Commission shall also apply to the City Council.

B. An applicant for a cannabis retailer conditional use permit shall comply with the California Environmental Quality Act ("CEQA"). No cannabis retailer conditional use permit shall be granted until the requisite CEQA review has been conducted.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565 , § 16, 7-14-20)

17.54.070 Approval of cannabis retailer conditional use permit with conditions.

C. All cannabis businesses must pay all applicable taxes pursuant to all federal, state, and local laws.

D. Cannabis businesses shall comply with all cannabis state laws and regulations. (Ord. No. 1531, § 3G, 11-13-18)

17.54.080 Separation requirements and other limitations.

A. Only one cannabis retailer for every 10,000 residents may lawfully operate in the City, with any fraction of that ratio being rounded down to the nearest whole number.

B. No cannabis business shall be located within a 200-foot radius of any residential zoning district. No cannabis business shall be located within a 600-foot radius of any day care center, youth center, public or private school providing instruction in kindergarten or any of grades 1—12, or park. The 600-foot distance requirement does not include any private school in which education is primarily conducted in a private home or a family day care home. The distances specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection. (Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1539, § 4, 1-8-19)

17.54.090 Premises.

A. The building where the commercial cannabis activity occurs must be a minimum of 800 square feet in size.

B. All cannabis businesses shall be conducted only in the interior of enclosed structures, facilities and buildings and all operations including the storage or cultivation of cannabis plants at any stage of growth shall not be visible from the exterior of any structure, facility, or building. There shall be no outdoor storage of any kind associated with the cannabis business.
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C. Loading areas and loading docks shall be located on the side or rear of the lot, and shall be screened by solid, decorative walls.

D. Hours of operation shall be as approved with the Conditional Use Permit.

F. All entrances into the premises shall be locked at all times with entry controlled by the permittee's managers and staff.

G. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed on the premises.

H. All commercial cannabis activity in any premises shall be separated from the main entrance and lobby, and cannabis and cannabis products shall be secured by a lock accessible only to managers and staff of the permittee.

I. A permittee shall not, without an approved amendment to the cannabis retailer conditional use permit, make a physical change, alteration, or modification of the premises that alters the premises or the use of the premises from the premises diagram filed with the permit application. Material or substantial changes, alterations or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway or passage alters or changes limited-access areas within the premises.

J. A permittee shall not sublet the premises.

K. Inspections. The City shall have the right to enter all cannabis businesses from time to time upon 24-hour's notice 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 cannabis business is being operated or maintained in compliance with this Code, state law, and other applicable laws and regulations. Any cannabis business licensed pursuant to this Chapter may be required to demonstrate, upon demand by the City that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.100 Personnel and visitors.

A. All agents, officers, or other persons acting for or employed by a cannabis business shall display a laminated or plastic-coated identification badge issued by the cannabis business at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the cannabis business's "Doing business as" name and city business license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height.

C. Visitors. Limited access areas of a cannabis business shall not be open to the general public. Any individual permitted to enter a limited access area who is not a person that has undergone a background check in 1294
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accordance with Chapter 5.33 of this Code and is not listed on the premises' worker list shall be considered a visitor. Notwithstanding the foregoing, state and local employees, or their official designees, shall not be considered a visitor provided the individual is on the licensed premises for purposes of official government business.

2. Visitors Must Be at Least Twenty-One (21) Years of Age. A cannabis business may not permit a visitor who is less than twenty-one (21) years of age to enter a limited access area.

3. Visitors Prohibited Conduct. A visitor shall not be permitted to engage in any commercial cannabis activity while on the premises.

4. A manager shall be on the site at all times that any other person, except a security guard, is on the site. (Ord. No. 1531, § 3G, 11-13-18)

17.54.110 Security.

The premises of a cannabis business must comply with all of the following security requirements:

A. Main Entrance and Lobby. The premises shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. The premises shall have an area designed for the secure receipt of cannabis and cannabis goods from a licensed distributor.

B. Commercial-Grade Locks. All points of ingress and egress to a premises shall ensure the use of commercial-grade, nonresidential door locks or window locks.

C. A permittee shall hire or contract for 24-hour security personnel to provide security services for the premises. All security personnel hired or contracted for by the cannabis business shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

D. Video Surveillance. The premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection.

1. Each premises shall have a digital audio/video surveillance system with a minimum camera resolution of 1280 x 720 pixels.

2. The surveillance-system storage device or the cameras shall be transmission control protocol (TCP) capable of being accessed through the internet.

3. The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance and shall capture audio such that all sounds are intelligible.

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b. Limited-access areas;
c. Security rooms;
d. Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; e. Entrances and exits to the premises;
f. Waste containers.

6. Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS).

7. The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering, fire, or theft.

8. Surveillance recordings shall be kept for a minimum of 90 days.

9. Surveillance recordings shall be monitored by a third party surveillance company.

11. Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the United States National Institute Standards and Technology standards.

13. The video surveillance system shall be equipped with a battery backup system capable of sustaining system operations in the case of an energy failure.

E. Alarm System. The premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows.

1. The alarm system shall be installed, maintained, monitored, and responded to by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

2. Upon request, a permittee shall make available to the City all information related to the alarm system.

F. Secure Storage of Product. Cannabis and cannabis products possessed by a cannabis business shall be kept and stored in a secured manner at all times.

G. Lighting. The business entrance(s) and all window areas of any cannabis business shall be illuminated during evening hours. The cannabis business shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, and shielding. (Ord. No. 1531, § 3G, 11-13-18)
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17.54.120 Track and trace.

17.54.130 Signage.

The premises must comply with the following signage requirements:

A. Business signage shall be limited to the name of the cannabis business only, shall be in compliance with the City's sign code, and shall contain no advertising of any companies, brands, products, goods, or services.

B. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve (12) inches wide and twelve (12) inches long, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera." C. Limited access areas shall be clearly identified by the posting of a sign which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one-half inch in height, which shall state, "Limited Access Area—Authorized Personnel Only." D. A sign shall be posted stating "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises, in their vicinity, or in any public place is prohibited and a violation of the Banning Municipal Code."
(Ord. No. 1531, § 3G, 11-13-18)

17.54.140 Cannabis waste management.

Cannabis waste disposal shall be conducted as follows:

A. Cannabis Waste. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with fifty percent non-medicinal cannabis waste.

B. Cannabis waste must be placed in either a trash enclosure or a trash receptacle for which either is locked with a commercial grade lock that is only accessible by the owner, manager, or employee of the cannabis business and any waste disposal company that provide waste disposal services for the cannabis business.

C. The permittee shall comply with Chapter 13.20, Industrial Wastewater Collection and Treatment of the Banning Municipal Code.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.150 General sanitary requirements.

A. A cannabis business must ensure that its premises is maintained in a sanitary manner and activities on its premises are conducted in a sanitary manner.

B. All facilities of a cannabis business must have adequate and sufficient access to bathrooms and handwashing facilities with running water at a suitable temperature. 1297
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(Ord. No. 1531, § 3G, 11-13-18)

17.54.160 Odor control.

A. A cannabis business must have a ventilation and filtration system installed that shall prevent cannabis odors from exiting the interior of the structure and shall comply with all related Building Code requirements.

The ventilation and filtration system must be approved by the Building Official and installed prior to the commencement of business activities on the premises.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565 , § 18, 7-14-20)

17.54.170 Operating regulations.

A. Limited Hours of Operation. A cannabis retailer may only be open to the public and engage in sales between the hours of 8:00 (eight) a.m. and 10:00 (ten) p.m.

B. Product Not Visible To Public. The display of cannabis and cannabis products for sale shall not be visible from outside the licensed premises.

C. Age Restricted Entry. A cannabis retailer may not permit an individual less than twenty-one years of age into the licensed premises, except a cannabis retailer with an M-license (allowing for the sale of medicinal cannabis and cannabis products) from the state may permit an individual aged eighteen years or older into the licensed premises if the cannabis retailer verifies the individual is a qualified patient with a physician's recommendation or a primary caregiver, as those terms are defined under State law.

D. Cannabis Paraphernalia Sales. Cannabis retailers may sell or otherwise provide equipment, supplies, and paraphernalia used to consume cannabis and cannabis products.

E. Electronic Point-of-Sale System Required. Cannabis retailers 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 customer.

F. No Sales of Expired Product. Cannabis retailers may not sell any expired products, cannabis or cannabis products. Cannabis retailers shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

G. Handling of Edible Cannabis Products. Cannabis retailers 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.

H. Sale of Untested Products. All cannabis and cannabis products sold by a cannabis retailer must be tested by a State licensed testing laboratory prior to sale to a purchaser in accordance with the MAUCRSA.

I. Consumption of Cannabis and Cannabis Products on Premises. Cannabis and cannabis products shall not be smoked, vaporized, ingested or otherwise consumed on the licensed premises of a cannabis retailer.

Premises as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas.

J. Tamper-Evident, Child-Resistant Packaging Required. A cannabis retailer shall not deliver or sell cannabis products that are not packaged or labeled in a resealable, tamper-evident, child-resistant package. The cannabis and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products.
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K. Cannot Be Attractive to Children. Cannabis packaging and labeling shall not be designed to appeal to children, including, but not limited to, cartoon characters or similar images.

L. 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). (Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565 , § 19, 20, 7-14-20)

17.54.180 Other provisions.

A. No person shall give, sell, distribute, or otherwise transfer any cannabis product in any manner not consistent with the approved cannabis conditional use permit or that violates local or state law.

B. Permittees must cooperate with City staff and Police Department personnel who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this Chapter.

C. Permittees must comply with all state laws and regulations that pertain to cannabis businesses including, but not limited to, the MAUCRSA, and any regulations promulgated by a licensing authority.

D. Minimum square footage of the building shall be 800 square feet unless otherwise provided by the State. (Ord. No. 1531, § 3G, 11-13-18)

17.54.190 Indemnification.

2. Maintain insurance in the amounts and of the types that are acceptable to the City pursuant to guidelines and policies set forth by the City.

3. Name the City as an additionally insured on all City required insurance policies.

4. Defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a permit or the operation of the cannabis business.

17.54.200 Expiration.

Notwithstanding any other provision of this Code, a retailer conditional use permit shall only be issued if it includes conditions that require (1) an application for a building permit for any construction or tenant improvements for the proposed use to be submitted within forty-five days of approval of the retailer conditional use permit, (2) that any physical construction in reliance on the building permit be commenced within sixty days 1299
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after the issuance of the building permit, and (3) that the retailer commence its operations within one hundred eighty days of the issuance of a building permit. If the applicant fails to satisfy the requirements for the forty-fiveday, sixty-day, or one hundred eighty-day period, the retailer conditional use permit shall automatically become null and void, unless the applicant files an application for an extension prior to the expiration of the applicable deadline and thereafter obtains that extension from the Community Development Director on the basis that the extension is warranted by special circumstances and that the applicant would be irreparably injured by the denial of an extension. In addition, if after commencement of construction, work is discontinued for a period of one hundred eighty days, the Conditional Use Permit shall become null and void. (Ord. No. 1565 , § 17, 7-14-20; Ord. No. 1577 , § 26, 9-28-21) 1300
1 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES (C00698)

FOR LANDSCAPE MAINTENANCE SERVICES FOR CITY PARKS BETWEEN CITY OF BANNING AND MARIPOSA LANDSCAPES, INC.

THIS AMENDMENT NO. 2 TO THE AGREEMENT FOR LANDSCAPE
MAINTENANCE SERVICES FOR CITY PARKS (“Amendment No. 2”) by and between the CITY OF BANNING (“City”) and MARIPOSA LANDSCAPES, INC. (“Contractor”) is effective as of this day: _______________.

RECITALS
A. On February 23, 2021, the City awarded a Landscape Maintenance Agreement to Mariposa Landscapes, Inc. The Agreement provided that Contractor would provide those services specified in the Agreement and in the Scope of Services attached to the Agreement as Exhibit “A1”. The Agreement included a Schedule of Compensation attached as Exhibit “C” which specified that Contractor’s total compensation would not exceed One Hundred and Six Thousand Three Hundred and Fifty-Two Dollars ($106,352.00), which included a 10% contingency for additional work.

B. On March 22, 2021, the City and Contractor, executed the Landscape Maintenance Agreement for City Parks – (C00698).

C. On May 10, 2022, the City and Contractor amended the Agreement (“Amendment No. 1”) to extend the term for an additional one-year term to expire June 30, 2023 and increase the compensation for services provided under the Agreement in an amount not to exceed One Hundred One Thousand Six Hundred Thirty-Eight Dollars and Eighty Cents ($101,638.80), as approved by City Council Resolution No. 2022-56.

D. City and Contractor now desire to amend the Agreement (“Amendment No. 2”) in accordance with City Council approval to exercise the option to extend the Agreement for an additional one-year term ending on June 30, 2024, modify the scope of services to include additional landscape sites and to provide compensation for the additional one-year term and additional services in an amount not to exceed One Hundred and Thirty-Five Thousand Eight Hundred and Forty-Seven Dollars and Ninety-Seven Cents ($135,847.97) for a total not to exceed Contract Sum of Three Hundred Forty-Three Thousand Eight Hundred Thirty-Eight Dollars and Seventy-Seven Cents ($343,838.77).

TERMS

1. Contract Changes. The Agreement is amended as follows:
a) Section 1.1 and Exhibit “A” to the Agreement is amended to include the amended scope of services attached as Attachment “1” to this Amendment 2.

DocuSign Envelope ID: ABB0887B-E27D-4297-A050-CF5DF618481D 6/15/2023
1301 239
2 b) Section 2.1 (“Contract Sum”) of the Agreement is amended to provide that the City agrees to pay Contractor a monthly amount of Ten Thousand Two Hundred NinetyOne Dollars and Fifty-One Cents ($10,291.51) for twelve (12) months through June 30, 2024. Additionally, the City may authorize extra work for services not included in the agreed Scope of Services of a not to exceed amount of Twelve Thousand Three Hundred and Forty-Nine Dollars and Eighty-Five Cents ($12,349.85) for a total not to exceed amount of One Hundred and Thirty-Five Thousand Eight Hundred and FortySeven Dollars and Ninety-Seven Cents ($135,847.97). The total compensation, including reimbursement for actual expenses shall not exceed Three Hundred FortyThree Thousand Eight Hundred Thirty-Eight Dollars and Seventy-Seven Cents ($343,838.77) (the “Contract Sum”).
c) Section 3.1 (“Term”) of the Agreement is hereby amended to extend the Term of the Agreement to June 30, 2024.

2. Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment Nos. 1 through 2. In the event of a conflict between the provisions of this Amendment No. 2 and the provisions of the Agreement or Amendment No. 1, the provisions of this Amendment No. 2 shall control.

3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.

Contractor represents and warrants to City that, as of the date of this Amendment No. 2, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

City represents and warrants to Contractor that, as of the date of this Amendment No. 2, Contractor is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.

5. Authority. The persons executing this Amendment No. 2 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of this Amendment No. 2, and (iv) the DocuSign Envelope ID: ABB0887B-E27D-4297-A050-CF5DF618481D 1302 240
3 entering into this Amendment No. 2 does not violate any provision of any other Agreement to which said party is bound.

6. Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Amendment and such other documents transmitted by the Parties.
[SIGNATURES ON FOLLOWING PAGE]
DocuSign Envelope ID: ABB0887B-E27D-4297-A050-CF5DF618481D 1303 241
4 IN WITNESS WHEREOF the Parties hereto have executed this Amendment No. 2 the day and year first hereinabove written.

CITY OF BANNING CONSULTANT
Douglas Schulze, Date
City Manager
NAME: Date
TITLE:

NAME: Date
TITLE:

ATTEST:

Tax ID No.

Caroline Patton Date
Deputy City Clerk
Address:

APPROVED AS TO FORM:

Richards, Watson & Gershon
City Council Approval: _____________
Serita Young Date
City Attorney
NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED. APPROPRIATE

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

DocuSign Envelope ID: ABB0887B-E27D-4297-A050-CF5DF618481D 6/5/2023
Irwindale, CA 91702
95-4245898
Mariposa Landscapes, Inc.
6232 Santos Diaz St.

Antonio Valenzuela
Secretary
6/12/2023
6/13/2023
President
Terry Noriega
6/15/2023
6/15/2023
2023-099
1304 242
5 ATTACHMENT “1”
DocuSign Envelope ID: ABB0887B-E27D-4297-A050-CF5DF618481D 1305 243

Banning City CouncilMay 14, 2024

Banning City Council
May 14, 2024